with the amount of money in each belonging to the Treasury, and subject to draft, not ouly at the commencement of the present year, but at the very last returns received, can be seen in three of the columns of the statement. The distribution of these suins is generally that which has been given to them by circumstances connected with their collection and disbursement. No occasion has arisen, in which the Department felt justified in making transfers of the public money, except from points where it had accumulated, in the natural course of collection, much beyond the present and early anticipated wants of the Government in that neighborhood, or in sums not proportioned to the responsibility of the public depositories there, and to points where it either would be better secured, or probably would soon be needed for disbursement, or could, from the course of trade and exchange, be more readily applied to any new objects which Congress would be likely soon to sanction. These transfers, when rendered necessary, have been performed in such direcLions, and so gradually, that it is believed they have tended to obviale rather than create any pressure in the money market, and to aid materially the course of business in exchanges and the other commercial operations of the country.

The Department is aware, that, in the present overflowing condition of the Treasury, the regulation of these operations, with the selection and superintendence of the deposite banks, is a task of no small difficulty and delicacy; and when governed by a strict and unisorin adherence to sound principles, as has been attempted, must necessarily lead to many

disappointed applications. But in the absence of that specific legislation on the subject, which has been, and still is, earnestly requested, the Department has not hesitated (it is boped faithfully) to discharge, and frankly to explain, the duties, and the high and painful responsibility which so much discretionary power has iinposed.

For various reasons of public importance, it was deemed desirable, and measures have been adopted, and recommendations urged, that the specie in the vaults of a number of the selected Banks, should be still more increased in comparison with their issues and deposites, and that a still larger portion of the whole currency of the country, especially for small purposes, should be metallic. In improvement of the currency du ring the past year, many of the selected banks have not only continued to obtain and pay, when wanted, to the public creditors, American gold, out have entered into salutary arrangements for the redemption, in our large cities, of most of their bills, which may be received in payment of

the public dues. It is hoped, that in the progress of time, these beneficial arrangements may be further extended to most, not all, of the bills in circulation, of the large institutions, and the introduction of hard money, for the ordinary uses of life, be facilitated, by all the banks ceasing to circulate bills of small denominations. It is gratifying to find, that since the adjournment of Congress, in addition to the States of Pennsylvania, Maryland, Virginia, Georgia, Tennessee, Louisiana, North Carolina, Indiana, and Kentucky, which, before that time, are believed not to have allowed the circulation of bills under five dollars, others, viz: Maine, Connecticut, New York, New Jersey, and Alabama, have united in similar legislative measures, except Connecticut, has, as yet, extended the prohibition to only one and two dollar bills.

lo Mississippi and Illinois, it is understood that bills uuder five dollars have not recently been issued, and Missouri has no bank issuing bills of any denomination. So that more than two-thirds of the States have already usages or laws in existence, on this subject, of a highly salutary tendency. The great benefits which have already resulted to the general condition of the currency where such measures have been tested, besides numerous olhers to the security of the banks themselves, and to the less moneyed classes of society, detailed in the supplement 10 the last annual report from this Department, would seem to be a sufficient inducement for similar legislation on this important subject in all the States. In some of them, where no laws have yet been passed to suppress the circulation of small notes, their deposite bauks have voluntarily entered into arrange

ments not to issue certaiu descriptions of them, and most of the deposite bauks have, in a correspondence with the Department, evinced a willingness to co-operate in the suppression of small notes, whenever the regulation can be made general. The Treasury, so far as seemed practicable and judicious with its present powers, has endeavored to promote so desirable an end, not only by instituting the inquiries in that correspondence, but by instructions to its collecting officers noi to receive in payment any bills under five dollars after the 30th of September, 1835. It proposes to go further on this point the ensuing year, so as to prevent the receipt for public dues of all bank notes under ten dollars, unless Congress in the mean time shall adopt some new provisions on this subject, similar, it is hoped, to what previously have been, and still are, urged by this Departnient, not only as to the deposite banks, and the kind of bills received for the revenue, but as to the suppression entirely in the District of Columbia of the circulation of any bank notes under ten dollars in amount. The means for a sound currency in this country are at present ample. Within the last two years, or from October 1st, 1833, to November 1st, 1835, in addition to the former stock of specie, there has been imported into the United States, beyond the exports from it, with a due allowance for what does not appear on the custom-house books, more than twenty-seven millions; and the produce of our own mines within that period, is estimated to have been over three millions. Hence the whole amount of specie now in the country, probably exceeds the sum of sixty-four millions, and the means of the community to obtain more from abroad, to meet any contemilated changes in the character of our currency, were never

greater. The actual amount of specie returned, and estimated as belonging to all the banks in the United States, about the 1st of January, 1835, was near forty-four millions. As a portion of that may have been bullion, a sum quite equalling, if not exceeding the remainder of twenty millions, probably consists of the amount of specie in active circulation, wbich has been somewhat increased throughout the country during the last two years, so that, is the remaining small bills in circulation under

five dollars in the whole Union, which are chiefly in seven States, and which probably do not exceed six or seven millions, were withdrawn, it would not require, to supply their places, one-third of the addition which has been made in the last two years to the national stock of the precious metals. The specie on ban'ıl, in banks, will in this way, as it ought, soon bear a larger proportion to their notes in circulation, and the security and real usefulness of all banking institutions to the community be

thus greatly augmented. The specie in active circulation, thus increased by excluding small notes, will constitute, while retained in the country, a great and safe reliance for the banks to depend oni, (beside what belongs to them in their vaults,) whenever an unfavorable course of exchange abroad, or a panic at home, should cause an unusual demand for specie to be shipped abroad, to meet a balance of trade against us, or to be used in circulation at home, by those whose confidence, from real or

imaginary causes, may for a time become diminished in the security of baoks. When the further suppression of small notes, extending to all under ten dollars in amount, shall be deemed advisable by Congress and the States, no doubt is entertained that sufficient specie can and will be readily found to supply their place, in connection with what now exists in the country. The proportion of specie to bank notes in circulation will not then be su great as it is in all the inost conimercial nations in Europe. (See Table of Circulation, in Sup. Rept. 1834.) How much further it may be deemed feasible to go, with a fair prospect-of advantage to the community and our currency, can be better settled at that time than at the present.

Under its new valuation, the coinage of gold at the mint, from the 1st of August, 1834, to the 1st of Noveinber, 1835, has beeo $5,471,505, or over treble the amount supposed to have been coined in any previous period of similar length. The ratio has been somewhat lessened the last six months by several causes, of which an important one has been, the desire to provide more quarter eagles, and a full supply of silver change to meet the increasing demand in several States, from the withdrawal of small notes from circulation. The coiuage of silver has been extended, in the brst eight months of this year, to over eight and a third millions of pieces, which is believed to be much beyond the number in the same portion of any preceding year. The building of the three branch mints, and the procuring of their appropriate machinery, authorized by the act of the 3d of March last, was devolved by the President of the United States on this Depar ent, and has been prosecuted with all practicable despatch.

The estimates and views of the Director on that subject, as well as on other improvements.connected with this important and increasing esiablishment, will, with its whole operations the current year, and the details on the progress made in the new buildings and machinery, be seasonably presented in a separate communication ; and this Department does not, on this occasion, deem it necessary to invite special attention to any thing further connected with either the miot or our coinage, except the several recommendations relating to them, which were contained in its last annual report.

The same reasons then assigned for closing, by a special act of Congress, the concerns of the sinking fund, and of the connection of the Government, after the third of March next, with the United States Bank, on the subject of both the national debt and of pensions allowed previous to 1832, apply now with increased force. It is considered that nothing need be added to the suggestions then made on these points, or on the subject of the seizure of the dividends due the United States by the Bank for its claim for damages on what is called the bill of exchange on the Government of France.

As Congress has never yet given its sanction to that claim; or made any. appropriation for its payment, it is very desirable that, in its final proceedlings concerning the affairs of the Government with the Bank, some special direction should be included on that subject, as well as on the reports to be required, and agency exercised over the interests of the United States in the Bank'the ensuing two years, by any public officer. A direction seems proper also, as in 1812, concerning the receipt of the bills of the Bauk for public dues, after the third of March next; and on the disposition or investinent of the interest of the United - States in its capital stock, whenever paid over to the Treasury. Some explicit action of Congress on the subject of the above ciaim for damages, is very desirable in another view, so as to enable this Department, in case of the receipt of any part of the French indemnity, to decide correctly whether the dividends seized by the Bank should, in any event, be considered the loss of the United States; or should be deducted from the amount received for the claimants under the treaty, in whose behalf the business was transacting, in which the demand for damages originated, and to whose credit the present act of Congress requires shall be paid into the Treasury, only "the nett proceeds" of each instalment.

VII.-MISCELLANEOUS SUBJECTS. In the course of the past year, the Departinent has, at various ports, discontioved, as not necessary, fourteen custom-house officers, and at

others reduced the compensation of a few. This has enabled it to auginent the nunber and conipensation at some other points, where the increase of business appeared to demand it, though not, in all places to the extent desired. From the diminished temptation to smuggling, under our reduced tariff, this Department has selt justified in lessening the number of rerenue cutters 'two, or one.teuth of the whole; the number of boats Ihree, and the number of officers and men over fifty, making hereafter au anoual saving in these respects of about $20,000

After full inquiry, all has been effected on this subject which the public interests appear now to justify, the expenses of collection in this and other particulars should be considered in reference to the gross, and not as is sometimes inadvercently dove, the nelt revenue; the former being the amount which the custom-house establishment must actually assess; and the difference between them beiug in part paid out for other objects than the mere'expenses of collection; such as bounties on the fisheries, and refunding of fruties. In deciding on the reasonableness of those expenses, it inust be mavifest that a certain number of officers, cutters, boais, &c, equal to the collection of a large sum, cannot be dispensed with, at many places, fif any revenue, however small, is to be collected ; else there would be no adequate security against illicit trade, and no means of furnishing proper eritries, clearances, and other papers, to those' engaged in navigation, thoogh their trade may be almost exclusively in the preseut large amount of free goods, or in our widely extended coasting business.

In computing the rate per cent. for collecting the revenue, it must also he remembered that the rate is larger as the amount collected diminishes, and smaller as it increases, though the whole actual expense of collection per annum remains the same. Furthermore, the necessary cost of collecting $30,000,000 ai the same ports obviously need be but little more than

to collect half that sum, though the per centage, in one case, will be double what it is in the other. This Department, since the reduction of the whole duties to be collected in 1833, and the corresponding decrease in the inducements to smuggle, bas endeavored to reduce the whole actual expenses, and has, in some degree, been successful; though the whole cost of collection may still constitute a larger per ceutage than at some former periods, as the whole amount of revenue is so much lessened.

Thus, from 1790 to 1794, that cost, though small in itself, rose in some of those years to niore than 55 per cent on a small revenue, or to about the sanie as in 1833 and '34, and which is quite two per cent, lower than the average in England, aud four per cent lower than in France. But, in most intermediate years, for reasons before stated, and others too obvious for recital, the cost for collecting our revenue from customs, as well as lands, has seldom exceeded 3 per cent., and from the latter is now probably not half that rate. Besides the explanations already given on this subject, it is hoped that the new expenses, will ere long cease, which have recently been imposed on the collection of the reveuue, by the necessary preparations for making, and the actual manufacture of useful and important standard weights and measures, and uniform sets thereof, for all the custom-houses in the United States

In addition to the recommendations in the last annual report as to light houses, it may be observed that this Department, during the recess of Congress, deemed it proper to cause a thorough inquiry to be instituted into the whole subject. The inquiry extended to the propriety of discontinuing any of the present light-bouses, or of building others; the expediency of changing the height or material of any of these edifices; the best manner of lighting them, in respect to the kind or number of

lamps or reflectors; the various substances, used, and most suitable to give the best light at the smallest expense; and, in fine, the economy of managing the whole establishment. With this was combined a system of uniform instructions to the lighit-house keepers, for the discharge of their public duties. The report of the Fish Auditor, and the correspondence growing out of this inquiry, develope some interesting faets; and the whole proceedings will, with pleasure, be laid before Congress at sonje other appropriate opportunity.

The report of the Commissioner of the General Land Office is accom. panied by so many long and important documents, that it is here with submitted in a separate communication. Beside the remarks made a year since by this Department on the rapid increase of duties in thail bureau, and the corresponding necessity for an increase of clerks io dispose of it promptly and correctly, the experienee of the present year has, by the vast sales of lands which have occurred, added new force to all that was then urged. Taking either the number of acres soll, or the

mount of money received, as a guide, it will be seen by the table (see page 291,] that the business has more than doubled within the past five years.

The recommendations contained in the Conimissioner's report will, it is hoped, receive that early and grave aitention which the convenience and interests of the whole country, and especially the southwest and west, seem imperiously to require. As a subject of retrenchment,counected with