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27TH CONG....3D SESS.

ments of our naval service. It is my duty to do this, without reference to any other considerations. Whether my recommendations shall be adopted or not, must of course depend on the view which may be taken of them by the legislative department of the Government. In presenting my own views, I simply discharge my own duty to those to whose better judgment all the measures which I have proposed must be referred.

All which is respectfully submitted.

A. P. UPSHUR,

POSTMASTER GENERAL'S REPORT.

POST OFFICE DEPARTMENT,
December 3, 1842.

To the President of the United States:

SIR: In presenting to your consideration a report of the condition and operations of the Post Office Department for the year preceding the 30th June, 1842, it affords me pleasure to say, its condition has been improved, and the service has been attended with more than ordinary success, whether considered in reference to the management of its financial concerns, or the regularity and extent of its operations.

A public service, which requires the agency of 13,733 postmasters and their clerks, 2,343 contractors and their agents, covering during the year 34,835,991 miles of transporta ion, and extending almost to the door of every citizen, must encounter difficulties, and be subject to occasional irregularities, not only from the neglect of some of its nurous agents, but from physical causes, not in the power of this department to overcome.

When this vast machinery of the General Post Office; the minuteness of its details, and the character of the majority of the roads over which the mail is transported, are contemplated, there should be more of astonishment at the general regularity of the service, than of surprise and discontent at occasional failures. Absolute certainty and unbroken regularity in the arrival and departure of the mails, at all times, cannot, and ought not to be expected. And it is with pleasure I bear testimony, on this occasion, to the general zeal and fidelity of those employed in this branch of the public service.

The whole amount of mail transportation for the year ending June 30th, 1841, was 34,996,525 miles, at a contract cost of $3,159,375. The whole amount of transportation for the year ending June 30, 1812, was 34,835,991 miles, at a contract cost of $3,087,796.

The amount of expenditure of the department, for the year ending June, 1842, was estimated, in my report of December last, at $4,490,000. The revenue to be derived from postage, &c. in the same report was estimated at $4,380,000. The amount estimated for the expenditure did not include the sums due by the department prior to the 31st March, 1841. Thus exhibiting a probable liability of $110,000, beyond its estimated current receipts of that year.

To bring the expenditures within the income of the department, was a duty demanded at my hands, by a regard for the observance of the principle upon which I desire to conduct the administration of the General Post Office, viz: that, while the department should not be regarded as a source of revenue to the Government, it must not become an annual charge upon the public treasury.

To effect this object, great labor and minute attention have been bestowed by all concerned.

A revision of post-roads and post offices, necessary to a reduction of unprofitable routes, and the discontinuance of unproductive and useless post offices, and the substitution of others at more important points, better suited to the public wants; the institution of a system for the preservation and safety of the public property, and the reduction of useless expenditures, was a task requiring no ordinary portion of labor and time; and its performance could not fail often to subject the head of the department to censure and criticism from those who did not feel the necessity of the measures adopted. The effect has been salutary to the public service, as well in reference to its income, as to its useful. ness and cost. I refer you to the reports of the 1st and 3d Assistant Postmasters General, which will give more in detail the effect which has been produced by the measures adopted.

Useless and unproductive routes have been discontinued; whilst others, more convenient, less ex

Report of the Postmaster General.

pensive, and more productive, have been substituted. In many instances, where the nature and size of the mail did not demand the higher grade of service, the less expensive modes of transportation have been employed. This may be more satisfactorily illustrated by a reference to the service in the Northwestern and Southwestern districts, comprising the States of Michigan, Indiana, Illinois, Missouri, Kentucky, Tennessee, Alabama, Mississippi, Arkansas, and Louisiana, and the Territories of Wisconsin and Iowa, prior to the 1st July, 1842, and the service under the recent lettings. The whole number of miles of mail service in these districts annually was 11,005,865, costing annually the sum of $1,102,045 prior to the 1st July last. The recent contracts require the transportation of the mail, in each year, 11,424,128 miles, at a cost of $957,768-thus giving, in fact, 418,263 miles more of service for $144,277 less expense. And I do not hazard much when I assert that this saving has been made while the service itself has been, in the aggregate, greatly improved.

The heretofore heavy expenditure of mail-bags and locks has been greatly reduced. Entertaining the opinion that, by a proper system of preservation, and a just responsibility imposed upon public agents, the number of mail-bags on hand was equal to the wants of the service, and would be sufficient to meet its demands for several years, I have, in ef fect, ordered their manufacture to cease.

By the report of the Third Assistant, it will be seen that the expenditure for mail bags was, in the year 1837 In 1838

In 1839 In 1840

$56,702 28 38,737 36 36,082 46 35,337 23 From 1st April, 1811, to 1st April, 1812, the amount expended was but $13,566 30.

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From 1st April, 1842, to 1st October, 1842-six months-$7,510 59. A large proportion of which was the mail-bags manufactured prior to 1841.

It is important, in every branch of the public service, to impress upon those in its employment the necessity of taking care of and preserving the public property. This is best done by the adoption of an appropriate system, and holding to a just responsibility those charged with administrative duties; and, when they prove themselves faithless or negligent, to appoint others in their places.

The good effects of this rule are strictly illustrated, not only in the item of expenditure just enumerated, but they are manifested throughout the results of the entire year's service.

It will be seen, by reference to my report of December last, that the amount received from the postage on letters and newspapers, and fines, for the year commencing 1st July, 1840, and ending 30:h June, 1841, was stated to be $4,379,317 78.

The amount arising from the same sources for the year ending 30th June, 1842, is $4,546,246 13. Thus showing an increase of the revenue of the department of $166,928 35 over the revenue of the preceding year.

This increase has not been the result of an increase of mail matter, I am persuaded; but has arisen from a more systematic and vigilant execution of the law.

The gross expenditures of the department for the year ending 30th June, 1842, so far as they have been audited and paid, are $4,627,716 62exceeding the amount derived from postage, during the same year, $81,470 49.

It will be remembered that, by the act approved the 9th September, 1811, there was appropriated, "to enable the Post Office Department to meet its engagements and pay its debts," the sum of $482,657.

Of this sum, there has been expended, during the last fiscal year, the sum of $392,664 51 in satisfaction of demands against the department prior to the month of April, 1841. The report of the chief clerk upon this subject, will exhibit more in detail the application of this fund.

There remained unexpended of this appropriation on the 30th of June, 1812, $89,992 49, to meet such other demands as may be established to be due prior to the 31st March, 1811.

This sum of $392,664 51 constitutes no part of the $4,546,246 13, given above as the revenue for the last year, derivable from postage and fines. It does, however, constitute part of the $4,627,716 62, the gross expenditure for that year; and, if deducted, will show the gross expenditure, for ordinary current service, to be $4,235,052 11.

Senate & H. of Reps.

This would present an apparent balance, or an excess of revenue over expenditures, of $311,194 02. As it is highly probable that there are yet claims unsatisfied, not having been presented for payment, and claims which were due prior to that time, and which, if presented, would have been audited and paid within the year, and which have been paid since 30th June, 1842, and, consequently, will be charged in the expenditures for the current year, it is not intended to convey the idea that this $311,194 02 is a surplus on hand; but it is a fact, from which I am authorized to state that the in come of the department has been equal to its current expenditures during the year ending in June, 1842; and it induces me to hope that, unless the burdens of the service shall be too greatly aug. mented by the additional routes created by the act of the last session of Congress, the department will, in future, be enabled to sustain itself. I cannot antici. pate, however, any great extension of the service beyond its present limits and amount, unless Congress shall, in some mode, relieve the departmen from the heavy annual demands made upon its income by railroad transportation, and protect it, by appropriate legislation, against the inroads upon it by private expresses and rival mail establish

ments.

It affords me great satisfaction to report to your excellency that every legal demand by the contractors, properly vouched, upon the department, for services rendered since I have had the honor of superintending its operations, has been promptly paid.

Justice to contractors requires that, as soon as they have performed the service, they should be paid. To enable the department to do this, punctu ality on the part of postmasters in the payment of the balances due from them at the end of each quar ter, is all important.

In every instance where there has been a failure on the part of such postmasters to meet the drafts of the General Post Office, I have felt it a duty, not to be omitted, to relieve such from the burden of offcial duty. The knowledge of the existence of this rule has banished defalcation from the depart

ment.

It is a fact worthy of notice, that, although the aggregate amount received from postage during the past year has been greater by the sum stated, the receipts at the large offices for 1842 have been less than in 1841. The aggregate increase has been at the medium and smaller offices.

This is accounted for by the fact, that the means of intercommunication between the great commercial points have been such as to invite constant and increasing infractions and violations of the laws of Congress regulating the General Post Office.

I took occasion to invite your attention to this subject in my report of last year, under the hope that some legislation, in aid of the present laws, would take place, to enable the department more effectually to protect itself.

It is made the exclusive duty of the General Gov. ernment to establish post offices and post roads. The State Governments have no right to interfere with the subject; neither has any individual, or company of individuals, such right.

Upon most of the railroads in the United States, over which the mail is transported at an immense expense, there are to be found individuals engaged in the transportation of mail matter, in violation of the laws of the land--laws which prohibit the of fence, but do not punish it by adequate sanctions, A modification of the laws regulating the franking privilege is essential to the continued prosperity of the department. The original grant of this privilege was designed the better to enable the public officer to discharge his official duties without burden upon his private means. It is now generally esteemed more as a private and individual right, than an official privilege. If persons entitled to this privilege were content to enjoy it themselves, without lending their franks to others, the burden and loss to the department would not be so great, and there would be less cause of just complaint by the public.

Although the act of 1825 expressly declares that, "if any person shall frank any letter or letters, other than those written by himself, or by his order, on the business of his office, he shall, on conviction thereof, pay a fine of ten dollars; and it shall be the espe cial duty of postmasters to prosecute for said of fence." The penalty declared by this law has noj

27TH CONG......3D SESS.

been sufficient to prevent the too frequent violation of its provisions.

If Congress shall deem it inexpedient to limit, or further restrain, this right, an imposition of the same penalty upon him who uses the frank of another, as is imposed upon the person who abuses his privilege, would tend greatly to lessen the

evil.

The whole number of free letters sent through the post office annually, so far as the returns of postmasters exhibit, is about three millions.

Assuming fifteen cents as the average rate of each letter, if charged with postage, four hundred and fifty thousand dollars would be the amount received. Thus it will be seen that nearly one-ninth of all the matter which passes through the mail, passes free of postage. The loss to the department does not stop here. Two cents are paid to postmasters on each of these letters, constituting an annual charge upon the revenue of $60,000. An evil of this magnitude, I trust, will not fail to arrest the attention of Congress, who alone can apply the proper corrective. It is wrong to burden the business and friendly correspondence of the community with this heavy charge.

The public voice has called for a reduction of the rates of postage upon letters; and whilst I have felt its force, and am constrained to acknowledge its justice, I have heretofore been deterred from making any specific recommendation upon this subject, lest, by a sudden reduction, the only source of income might fail to meet the demands of the service. With a proper regulation of the franking privilege, and a further protection against the violations of the laws of the department, I have ⚫ no doubt a considerable reduction in postage might be safely made, and the benefits and advantages of the department extended to many portions of the country which are now, in a great measure, destitute of proper mail accommodations. More especially could this be done, if Congress, by some permanent arrangement with the railroad companies, would relieve the department from the immense and constantly increasing amount annually paid those companies for transporting the public mail.

I ventured to recommend, in my former report to you, that Congress should then legislate upon this subject. Nothing has occurred since to cause me to doubt the correctness of the opinions then expressed. On the contrary, subsequent developments have strengthened the views then obtruded upon your consideration.

Without the right in the department to control the arrival and departure of the mails, regularity and despatch cannot be expected. This is a right which the railroad companies, in their periodical contracts, will not yield willingly; and, when they do yield it, make it a ground to increase their demands upon the department for transporting the mail. For the service of railroad transportation there never can be competition. Why, then, subject the department to the useless ceremony of advertising periodically for bids to carry the mail on railroads, requiring it to take the lowest bid, when there will be but one bid for the same route? Each letting has heretofore been, and will hereafter be, but an invitation to the companies to increase the prices previously paid.

It is in vain to disguise the fact, that the United States are compelled to employ these roads as carriers of the mail. Justice and policy alike require of the Government to send the mail by the most expeditious means of conveyance, and it cannot employ any of its own creation equal to the railroads. As a Government, it cannot, by legislation, control those companies which have their corporate existThe United States ence by State enactments. must, therefore, purchase the right; and the question presented is, whether it is best to purchase this right every four years, or for the period of the charter of the road.

It is more a question of ability, at this time, on the part of the Government, than policy, in my humble opinion.

The plan which I proposed was, that Congress should authorize the department to purchase this right; enter into the stipulations of a contract with the companies, and report those contracts, as made, from time to time, to Congress, to be binding only when ratified by Congress. Nothing dangerous can arise from thus treating with the companies. No enlargement of executive power is asked. On the contrary, it is proposed to subject executive Power directly to the controlling influence of ConBress. As the law now stands, the department has

Report of the Secretary of the Treasury.

the power to contract with these companies for
four years, with a nominal limitation as to the
amount to be paid them per mile. Surely, no dan-
ger can arise to public liberty, or legislative au-
thority, by authorizing the department to make a
provisional permanent contract, subject to the ap-
proval of both Houses of Congress.

The great question involved is, whether Con-
gress should make these contracts, and pay the con-
sideration out of the resources of the Government;
or whether the department shall levy the amount,
by continuing the present rates of postage upon
letters; and, in all time to come, devote so large a
portion thereof to the payment for railroad trans-
portation, as to deny even the hope to the more dis-
tant and less favored portions of our country of any
increased mail facilities? The cost of railroad
transportation for the last year stands at $432,568.
The whole length of mail road in the United
States is 149,732 miles, costing $3,087,796. Of this
length of mail road, only 3,091 miles is railroad
transportation, at a cost of $432,568--only one-
forty-eighth part of the whole number of miles
costing one-seventh part of the gross sum.

I repeat the inquiry made on a former occasion: Is it just, that the whole burden of the public correspondence-now nearly equal to half a million of dollars annually-should be sustained by a tax upon the business and friendly correspondence of the community? If the Government exacts from the citizen no more than the cost and expense of transporting his letters, he has no right to complain; but when an additional sum is wanted to defray the expenses of transporting the correspondence of the Government and its officers, that sum, like the tax for every other public service, should be drawn from the common resources of the country.

It is proposed that, in lieu of an annual drain
from the treasury to pay the postage upon the pub-
lic correspondence, the United States now secure
and pay for the perpetual right to transport the
mails over railroads. Can this right be now se-
cured upon fair and reasonable terms? is a question
worthy to be tested by fair experiment. I am of
opinion it can be secured upon most, if not all of
the important roads, upon reasonable terms, and
with ample guaranties.

It is no part of the business of this department
to speak of the effects which such contracts with
the railroad companies would produce upon public
The effects,
credit, both at home and abroad.
whatever they may be for good, are but incidental
to the great object to be attained in reference to
the mail service of the United States.

Entertaining these opinions upon this subject, I
pray you will allow me most respectfully to press
them upon your consideration.

Public opinion seemed so strong in favor of a reduction of postage upon letters, that it could be regarded in no other light than a demand upon those having the power over this subject. I have felt its influence, but have been unwilling to act unadvisedly in any recommendation I might make upon the subject. It will be remembered that England recently reduced her rates of postage. The effect upon the revenue, and upon the amount of mail matter, I was anxious to know. For this, and other objects connected with the operations of this department, I availed myself of the services of General Green, in November last, who was about to visit England and France upon private business, and instructed him to make certain investigations and inquiries. The result of his investigations may be seen by a reference to his report to me, a copy of which accompanies this report.

The dissimilarity in the government of the two countries, as well as the difference in the extent of territory, induce me to doubt whether the same system of mail service and rates of postage could be safely adopted in the United States.

One fact, however, is clearly developed by the report of General Green-that, since the reduction of postage in England, the number of letters mailed has greatly increased. I forbear to trouble you with any particular suggestions upon this subject, because it has been a duly devolved upon me by a resolution of the Senate, to make to that body a specific report upon an alteration of the rates of postage, which I purpose to do at as early a day as practicable.

It will be seen, by reference to a part of the report of Mr. Green, that the French Government is anxious to make a treaty with the United States

Senate & H. of Reps.

for an interchange of mail service by the agency
of packet and steamships of the two countries.
You will remember, this subject was brought to
your attention by the minister of France during
the last session of Congress. It was submitted by
you to Congress, as one worthy of their considera-
tion, and requiring specific legislation, if, in the
opinion of that body, such an arrangement would
prove advantageous to the United States. The
Committee on Foreign Relations made a report
favorable to the measure, and the House of Repre-
sentatives adopted the following resolution:

"That the President of the United States be requested to cause to be prepared and reported to this House, by the Secretaries of State and of the Navy, at the commencement of the next session of Congress, a plan for the establishment, in concert with the Government of France, of a line of weekly steamers between the ports of Havre and New York, together with estimates of the expense which may be required to carry the said plan into effect."

That portion of Mr. Green's report, and the accompanying documents, are submitted under the belief that it may be serviceable to place before Congress the outlines of the plan contemplated by the French Government.

In the month of August last, I caused to be established and put into operation a city despatch post for the city of New York, confined to the delivery, through the post office of that city, of the correspondence within its limits. I am gratified to know that its operations have proved highly satisfactory to the community, giving to the citizens a prompt and cheap medium of communication, the income of which will not only maintain the expenses of the establishment, but, in the course of time, promises a considerable addition to the revenue of the department. The report of the postmaster of New York upon this subject is submitted, in order that its details may be more generally known; and, when understood, I have little doubt that the other large cities of the Union will call for a similar establishment. Its usefulness has been fully tested in New York, by the saving of a heavy daily expense of money and time to the business community in their city correspondence.

The amount of expenditure for the current fiscal year, for the service of this department, may be stated, by way of estimate, in round numbers, at $4,390.000.

This estimate does not include the probable expense of the new routes established by Congress at the last session, none of which have yet been put in operation. The probable cost of these routes per year will be $130,000, making the whole estimated expense of $4,520,000.

Any estimate of the income from postage during the present year must of course be altogether conjectural, founded upon the amounts received for the year ending in June, 1842.

The amount received the quarter ending 30th September last, is less than the amount of the corresponding quarter of 1841; and I therefore conclude the income of the department for the current year will fall considerably short of that for the year ending 30th June. It is, however, my intention to put these routes in operation by the time specified in the act. And as there is no discretion vested in the department by the act, if I find its means will not be otherwise equal to the additional expense, it will become my unpleasant duty to curtail the expense upon routes already in existence, equal to the cost of the new ones peremptorily ordered by Congress.

There are other matters more of detail, requiring, in my judgment, the legislation of Congress, which I forbear to obtrude upon your attention; but will seek the opportunity to submit to the committees to whom the affairs of this department may be referred.

I have the honor to be, with great respect, your excellency's obedient servant,

C. A. WICKLIFFE.

REPORT ON THE FINANCES.

LETTER FROM THE SECRETARY OF THE TREASU-
RY ON THE STATE OF THE FINANCES.

TREASURY DEPARTMENT, Dec. 15, 1842. SIR: In obedience to the directions of the act of Congress of the 10th May, 1800, entitled "An act supplementary to the act entitled 'An act to estab

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Interest on public debt and treasury-notes

By the foregoing statements, it will appear that a deficiency will exist in the treasury on the 31st December, 1842, of

The receipts for the half calendar year ending
on the 30th June, 1843, are estimated at
And the expenditures for the same period at
Leaving a balance of

From which deduct the amount of deficiency
as above, and the balance remaining in the
treasury on the 30th June, 1843, will be
The receipts into the treasury for the fiscal
year ending on the 30th June, 1844, are esti-
mated at

$16.000,000 00

2,700.000 00 150,000 00 18,850 000 00

20,945,498 76 3,804,434 44

8,612,042 61 7.318021 71 1,211 000 00

575,556 92

14.688.113 45 10,381,186 76 4,306,926 69

3,731,369 77

Making, with the balance, as above From which deduct the estimated expenditures for the fiscal year

18,850,000 00 122,581,369 77 20,945,498 76

8,238,278 15

And the balance in the treasury on the 30th June, 1811, will amount to

805,474 03 $35,308,634 38

$575.556 92

The above estimates of expenditures for the 4th quarter of the present year include, as it will be perceived, the sum of 8805,474 03, being the amount of outstanding warrants issued prior to the 1st January, 1842. It is presumed, however, that a like sum will remain outstanding on the 1st January next; and that, instead of the apparent deficiency as stated above, there will be an actual balance in the treasury on the 1st January, 1843, of at least $221,000. It is expected, also, that a like amount of warrants may be outstanding on the 30th June, 1843, and at the end of the succeeding fiscal year.

It is proper to remark, that, at the time the estimates of the expenditures of the 4th quarter were prepared by the several departments, it was believed that the expenditures for the current quarter would amount to the sum already stated; but it is now ascertained that they will fall considerably short of that amount; yet, as they will become a charge on the treasury early in the next year, it has not been deemed necessary to alter the amount as first estimated.

II-Of the estimates of the public revenue and expenditures for the half calendar year ending 30th June, 1843.

The receipts for the half year are estimated as follows: From customs

From lands

From treasury notes and loans

From miscellaneous sources

$7,500,000 00 1.500,000 00 5,535,113 45 50,000 00

14,588,113 45

$1,635,871 01

Assuming (as is highly probable) that the balance of the loan authorized by the acts of 21st July, 1841, and the 15th April, 1842, amounting to $5,538,113 45, will be negotiated prior to the 15th April, 1843-the limit of the term within which it can be taken-it has been included in the receipts of the next half year. Should, however, this reasonable expectation be disappointed as to the whole amount of such balance, the deficiency thence arising may be supplied by the issue of treasury notes under the authority of the act of the 31st August last, to the amount of $3,500,000; which sum, together with that realized by the sale of stock, will, it is believed, place in the treasury an available amount adequate to meet all the anticipated demands up to the 30th June, 1844; and if the whole of the balance of the loan be taken within the period limited by law, the several balances remaining in the treasury on the 30th of June, 1843, and 30th June, 1844, will be as indicated in the foregoing exhibit.

It will be perceived that, in the estimate of expenditures subsequent to the 1st of January next, the redemption of treasury notes is not taken into account. But few notes have been presented at the department for redemption since the passage of the act of the 31st August last; and nearly the whole amount cancelled since that day was taken in payment of public dues. Should the notes issued under the act above mentioned be placed on the same footing with the previous issues, so as to bear interest after maturity, payable half-yearly, until called in for redemption, it is believed but a small amount would fall into the expenditures for the ensuing eighteen months. It is recommended, therefore, that this be done: otherwise, the expenditures during the period last mentioned must necessarily be increased to the amount of probably three to four millions of dollars, in redemption of issues under the act of 31st August last. But, for the purpose of guarding against unforeseen contingencies, it is further recommended that the existing authority to reissue treasury notes should be extended to the 30th of June, 1844.

The loan of $5,672,976 88, borrowed under the provisions of the act of the 21st July, 1841, will be redeemable on the 1st of January, 1845; and, on the assumption that a re-issue of treasury notes, as above suggested, shall be authorized by Congress, the whole amount now outstanding, together with

Senate & H. of Reps.

that of the issues that may be hereafter made under the act of the 31st August last, will fall due prior to the 30th June, 1845. Although payment of those notes may not be at once demanded when due, and the time of repayment of the loan of 1841 is placed at the pleasure of Government, yet the liability to pay those several amounts must exist, and the means to provide for the exigency can be afforded only by further legislation.

The present tariff, in its main features, resembles so nearly the bill submitted to Congress by the department on the 9th May last, that the views expressed in the report which accompanied the bill may be considered as applicable, to a great extent, to the system of duties now established. The period within which the tariff has been in operation has been much too short to furnish any decisive evidence as to its permanent influence upon importations. The foreign trade of the country has continued to decline, and importations have been comparatively small since the passage of the act. How far this state of things may have been influenced by the existing system of duties, it is impossible to determine. The smallness of the importations may be well accounted for, by the embarrassed condition of the country, and its extremely limited means of purchase. The amount of foreign commodities in our markets is still found greatly to exceed the demand; and the fall in the prices of merchandise since the 1st September is supposed to be, on an average, not less than ten per cent. This fact will be found verified in a letter from the collector at New York, annexed hereto, to which reference is respectfully made; and it is deemed conclusive to show that the decline in the importations since the 1st September cannot justly be referred to our system of duties; and that the effect of the existing tariff remains to be determined by further and more satisfactory experience.

The importance of adequate provision for rev enue cannot be too often or too strongly urged upon the attention of Congress. The resources of the country are abundant; internal taxation, either direct or indirect, has not of late years been found necessary; and it is still believed that a system of custom-house duties may be made sufficiently comprehensive to yield an income commensurate with all the wants of the country.

There are various articles of import, several of them of very large and universal consumption, at present untaxed, or subject to duties extremely low; and some of which (without, perhaps, in any considerable degree, lessening the amount of their consumption) might bear impos's yielding an aggregate addition to the revenue accruing under the existing laws, of not less than $3,000,000. These offer themselves for selection; and it rests with the wisdom of Congress to make that selection, or adopt any other mode of securing the receipt of such an amount of revenue as shall be sufficient to meet the expenses of an economical administration of the Government, and afford the means of sustaining measures necessary for the defence of the country and the maintenance of the public credit.

This last object is of infinite importance. The honor of the country, its just self-respect, the pride which every citizen must feel in the high character of its Government,-all these require that the public faith, and the credit of that Government, should be placed above doubt or question.

Deeming it highly probable that the policy of establishing a warehouse system might engage the deliberations of Congress at the present session, the attention of collectors and other officers at various ports was called to this subject by a circular issued from the department on the 24th November last-a copy of which, together with the answers received, and a table of exports of foreign merchandise, are annexed. It has been thought advisable, also, for the sake of convenient reference in a matter of such general interest, to attach to this report a copy of the statute of the 3d and 4th William IV, which embodies the warehouse system of Great Britain in a form matured by a long experience. In connexion with this, will be found a copy of regulations established under authority of the statute above mentioned, by the commissioners of the treasury, which will afford a satisfactory view of the practical operation of the system as it now exists in that country. I am, very respectfully, sir, your obedient servant,

W. FORWARD, Secretary of the Treasury.

Hon. WILLIE P. MANGUM, President of the Senate.

27TH CONG..... 3D SESS.

SPEECH OF MR. REYNOLDS,

OF ILLINOIS.

In the House of Representatives, Dec. 17, 1842-
On economy and retrenchment.

Mr. REYNOLDS of Illinois, having the floor, said:

Mr. CHAIRMAN: I see no reason to induce me to become so warm and excited on this subject, as I see evinced in other gentlemen who have taken part in the discussion. I feel as cold on the occasion as an ice-house; and will have no other feelings in the case, except what truth and justice may inspire me with.

The question before the committee is, to strike out of the bill under consideration $50,000 for the survey of the coast of the United States. This appropriation is for six months only; and, should it not be stricken out, the same sum must be ap. propriated for the other six months of the year; making, in all, $100,000 for the whole year; and so on until the work is completed,

Mr. Chairman, I consider this sum not of itself so vastly important to the public, as the principle which will be established by the Representatives of the people in the decision of this question. We will see whether the promises of economy and retrenchment, made so frequently to the public, will be binding on the Representatives or not.

A committee was raised at the last session of Congress, consisting of five members, to inquire into this same subject-the survey of the coast. This committee have not made a formal report; but a majority of them have come to the conclusion that Mr. Hassler, the superintendent of the survey, is incapable to carry on the work. This statement has given to the discussion a deeper lincture of Mr. Hassler than should, in my opinion, figure in the debate; yet his peculiar and particu lar friends have forced him to occupy such an important and prominent position in relation to this work, that, in order to arrest the appropriation, we are compelled to give him a passing notice.

The ardent and zealous gentleman [Mr. J. R INGERSOLL of Philadelphia] who last addressed the committee, seems to suppose that Mr. Hassler has 20, friends on this floor. If the gentleman had paid the same attention to his own efforts for Mr. Hassler that I did, he would have witnessed in himself a most powerful and influential friend to the old gentleman.

In fact, Mr. Chairman, I believe Mr. Hassler has no enemies in this House. What inducement could exist in any one's breast to make him hostile to Mr. Hassler? I myself feel no hostility towards him; and, I presume,others entertain as friendly feelings to him as I do. A majority of the select committee, in the discharge of their official duties, acting under the solemnities of an oath, have concluded that he is incapacitated to prosecu'e the surThis is not a declaration of war vey of the coast.

against Mr. Hassler, to gratify private feelings of enmity towards him; but it is a solemn act of official duty,performed by part of the select committee, as the Representatives of the people; and, as such, must and will have a most powerful influence in the case of Mr. Hassler.

The peculiar friends of Mr. Hassler have in such an efficient manner identified and dovetailed him with this national work, that some might suppose the survey could not go on without him. His friends seem to think that he and the work are both national,and, like the Siamese twins, one dying, the other cannot live. The praise and eulogies heaped on him with such unsparing profusion, will do him an injury. Anything that is not natural cannot be forced to return a permanent existence. And, moreover, it is an indirect reproach and censure on the science of the nation. That no other person in this Republic, consisting of Seventeen millions of people, can be found equal to Mr. Hassler to survey the coast, is a proposition so preposterous and absurd, that it will provoke the derision of the people, rather than their belief. It would seem that this vast confederacy must wither and decay, if Mr. Hassler were removed from of fce.

Has he any more right to the office than any other citizen? The office does not belong to the incumbent, but to the people; and all citizens are equally eligible. This is the perfection of our reNo one has a fee-simple publican institutions. right in 'office; and although, as it is stated, Mr. Hassler has been fifty-six years in office, yet this gives to him no more right to office than another

Economy and Retrenchment-Mr. Reynolds.

individual; and, to permit him to retire, will attach
to him neither disgiace nor criminality.

Mr. Chairman, I cannot see that it is absolutely
necessary to the prosecution of this work, that
Mr. Hassler should be continued the superintend-
ent of it. The survey can go on, in my opinion,
better without him than with him. The work was
commenced in Rhode Island nine or ten years
ago, and is completed not far beyond the Dela-
ware bay. At this rate, it will be fifty or sixty
years before the whole coast of the United States
is surveyed, and will cost the Government mil-
lions and millions of dollars. Is this economy,
either in time or money? If this work be of such
great utility to the nation, why delay it for fifty or
sixty years?

The first law authorizing the survey of the coast of the United States, was passed the 10th of July, 1807; and the work was almost entirely suspended until 1832, when another act of Congress was passed on the subject. I have heard of no calamity or disasters visited on commerce during this long period of twenty-five years' suspension, more than we experience at present. And, in fact, if the work were suspended, while we are compelled to carry on the Government by borrowing money, it would be justified by three-fourths of the people.

It is said this work is a magnificent effort of sci-
ence and talent, and has excited the admiration of
Europe; and that it is an honor to the United States
and Mr. Hassler. I am proud of this, if we do
not pay too much for the whistle. These great
and scientific works ought, nevertheless, to be kept
within the bounds of moderation and economy.

I am not that barbarian who, as a matter of
course, opposes science and the works of art. I am
proud that we have men of science and works of
art in our country. They add greatly to the honor
and happiness of the people, and should be sus-
tained, if we can do it on just and equitable prin-
ciples. And, moreover, I am not opposed to this
We can-
work because it is an Atlantic measure.
not, in the interior of this vast continent, expect a
seacoast, or the shipping of the ocean to visit us.
We are benefited by foreign commerce, and must
All I con-
bear our portion of the expenses of it.
tend for, Mr. Chairman, is, that these works of
national improvement shall be conducted with
economy, and with equality in respect of all the
sections and various interests of the Union.

An act of Congress, passed 14th April, 1814,
confined the appointment of all officers concerned
in this coast survey to the navy. This act was
repealed. I would repeal the rep aling act, and
confine the appointments to the officers of the army
or navy of the United States.

It is a well-known and deplorable fact, that the United States sustain, at an enormous expense, the Military Academy at West Point, for the express purpose of educating officers for the army. Each cadet, when he completes his education, and is ready to enter the army, costs the Government six thousand dollars for his education; and, according to the report of the Secretary of War of the 28th January, 1831, there are eighteen cadets each year, whose education has been completed, more than there are offices vacant in the army. These supernumerary cadets are attached to the army, and receive pay as officers.

These are facts which the public records will establish, to the satisfaction of every one who will examine them. The records will also show that thousands and thousands of the public money have been expended to sustain the academy at West Point, so that scientific and talented officers might be placed in the command of our armies. The friends of the academy praise and eulogize the institution for the profound learning and the variety of useful science which are taught in it. They claim for the academy the great honor of teaching the science of mathematics to the greatest perfection. This is the science, and its accessories, that are most essentially necessary in the survey of the coast.

I would, therefore, ask, Mr. Chairman, would it not be just and right to require some of these literary and scientific officers to make the survey of the coast, and thereby save the amount of money which is now expended on it under the present system? The friends of the academy dare not say that the officers educated in that institution are incompetent to make the survey of the coast. These officers are intrusted with the destinies of our armies. The glory, the honor, and the character of the army fare in their hands. And can it be said

H. of Reps.

that such officers are incapable to survey the coast?

If they are in apable for the performance of this work, then let no time be lost in exterminating the institution, and in having the least and fast recollection of it eradicated from our minds. The President, in his late message, proclaims, not only to this nation, but to all nations, "that we are exempt from domestic convulsion, and at peace with all the world;" so that the officers of the army will have sufficient time and leisure to make the survey-and particularly those cadets who have been educated at the public expense, and have no vacant offices to fill in the army.

We see that the engineer corps of the army are intrusted with the survey and estimates of the greatest public improvements in the nation. They superintend the work, and why not also superintend the coast survey? The Government possess a sufficient supply of instruments and all the necessary apparatus to execute the survey; so that the work could be carried on with very small additional expense.

But, Mr. Chairman, some individuals may consider it inappropriate for the officers of the army to make the survey, and that the work would fall more properly into the hands of the officers of the navy. The Congress of the United States in 1814 provided that the officers of the navy should prosecute the work; and why not revive the same law? Will any one deny the competency of the officers of the navy to make the survey? Where are the naval officers on earth more respected or more meritorious, not only for their courage and gallantry in battle, but for their science and literature, than those of the United States? Many of these officers have become aged and experienced in the science of their profession, and are, therefore, more competent, in my opinion, for the accomplishment of this great national work than any other class of An experienced and scientific officer of the navy, whose profession has caused him, during a great portion of his life, to observe, with care and caution, not only the coast and shoals of the United States, but also many other coasts, is more capable, in my judgment, than any other person, to superintend this work. This naval officer must, of necessity, be a man of science and literature, and particularly and profoundly versed in the mathematics and all its various branches. He must, also, have an intimate acquaintance with all the instruments and apparatus necessary to execute a survey, and must be more competent than any landsman can be, to sound the coast, ascertain the shoals, and mark them on the chart. The wise and the foolish, the learned and the unlearned would, in my opinion, at once agree that this work should be conducted by the officers of the navy.

men.

There is a superabundance, and, in fact, a redundancy of these officers in the pay of the United States, and doing nothing, and "at peace with all the world:" why not have the services of some of them in the execution of this work?

Mr. Chairman, I am justified in the conclusion that the naval officers are fully competent to superintend this work, by the fact that an officer of the navy made and executed in a practical, and also in a scientific manner, the survey of Lake Ontario; and the commerce on the lake has suffered no injury by the work not being properly and scientifically performed. The charts made by the officer have regulated the navigation of the lake in such manner, that we hear of no complaints for the want of a proper and correct survey of the coast. Therefore, I have no hesitation in saying, that either the officers of the engineer corps of the army, or the officers of the navy, are fully competent to execute the survey of the coast, and make all the charts that are necessary for the purposes of com

merce.

This policy being adopted, a vast sum of money will be saved to the public. I received an official note from Mr. Smith, the register of the treasury, in which it is stated, that from the year 1808 to the present time, the sum of $786,730 28 has been paid for the survey of the coast.

Mr. Chairman, within a very short time, important and essential changes have taken place in the country. Extravagance and speculation have passed away, and the sober realities of industry and economy have taken possession of the people. The excess of a spurious paper circulation has ceased to exist, and a more permanent and solid currency has taken its place. The banks, and their fraudu lent promises, were the greatest calamity ever inflicted on the country. They excited the people to

27TH CONG....3D SESS.

speculation, extravagance, and ruin; and have themselves, (many of them,) in turn, broke, and become loathsome nuisances in the community. Nothing on earth is more filthy and disgusting than the fraudulent remains of a broken bank. The people turn from them with the same disgust as they would from a deadly pestilence; they have left the banks, and are now depending on God and them. selves for support. They have turned their minds and their bodies to industry and economy; and the country commences to enjoy that prosperity and happiness that will always attend virtuous industry and economy. The habits and pursuits of the people have changed; and why not change, also, the legislation of Congress, to correspond with this pru dence and economy? The Government should be the shadow and image of the people; and, I presume, it will not be considered any disparagement of members to say that we are the public servants of the people, and ought to do their will. Can any one, no matter how careless he may be of public opinion, mistake the sentiments of the people on this subject, and believe that they will sanction any wild or prodigal appropriation of the public money? It is known to all, that the circulation of money, and particularly in the Western country, is extremely limited; and, of course, the price of property uncommonly low. All these considerations will compel the Representatives of the people to reflect on the subject, and force the expenditures of the public money to the very lowest point on which the Government can be justly and properly administered.

Mr. Chairman, I am clearly satisfied that the whole machinery of the Government can be carried on yearly for the sum of eighteen millions of dollars. Then, in truth, we would have a wise and economical administration of the Government. The last years of the Democratic Admiui-trations of the Government were verging to this sum, although millions were expended on the Florida war, which is now closed Particularly the army and navy should be reduced; and all expenditures curtailed in such manner that the appropriations should not, under any circumstances, exceed eighteen millions of dollars.

The scanty circulation of money in the country, in comparison to the superabundance in 1836, and the important changes in the sentiments and habits of the people-from prodigality and extravagance to industry and economy-imperiously demand of their Representatives a corresponding change in the administration of the Government.

It requires an effort to reduce the expenditures of the Government; but such effort and such reduction are confidently anticipated by the people.

It is in the House of Representatives where people should expect relief from these extravagant appropriations of money. The people have more intimate connexion with the House than any other department of Government. The Representatives are elected every two years, and therefore have a common feeling and identity with their constituents. It is not so with the Senate. The Senators are elected for six years, and then not by the people. Therefore, neither in theory nor in practice with the Senate, as far as I have observed them to act, need the people look to them, as a body, for relief from extravagance. In fact, the Constitution, in the first instance, commits all these money matters to the House of Representatives; and it is on them that the responsibility mainly rests in making these extravagant appropriations of money.

Mr. Chairman, I need only mention the fact, that every member, as far as I understand the subject, is pledged to his constituents to observe economy in the expenses of the Government. This subject has been the great bone of contention between the contending political parties for years past; and I take it to be true, that both parties, and the individual members of each party, are solemnly pledged, before God and man, to observe economy in all things, and to prosecute, with zeal and efficiency, every reform and retrenchment in Government that is proper to be made. Every member of this committee can probe his own heart, and see if I am not reviving in his mind the recollections of the pledges he made to his constituents.

Although the sum proposed to be stricken out is but small, yet the decision will be important, to test the disposition of this House on economy and retrenchment.

Mr. Chairman, there is another consideration which has a powerful influence on me in opposing This appropriation. I believe that the good of

Repeal of the Bankrupt Law-Mr. Payne.

the public requires a different location to be given to it. The officers of the Government may be required to complete the survey of the coast; and the money heretofore appropriated for that work be applied to the improvement of the Western rivers or the national road, if you please. Iconsider it an act of the greatest economy to appropriate money for the essential and necessary national improvements of the country. Suppose, for the sake of example, that a few thousand dollars applied to the removing of the snags in the Mississippi would save millions to the people: would not this be economy? Money may be expended so as to advance the most essential principles of economy.

I would only mention some of the improvements that ought not to be neglected any longer. The completion of the national road to Alton, in the State of Illinois, would be an improvement of much more benefit to the public than the survey of the coast. This great national work has been commenced by the Government, and the high expectations raised among the people should be realized by completing the road to Alton.

One other important and essential improvement, is the purchase, by the Government, of the private stock in the Louisville and Portland canal, in Kentucky, and making it free. There is no improvement on all the length of one thousand miles of the Ohio river, so essential and necessary as the free navigation of this canal. Although it is only three miles in length, yet it is a great national work. I need not inform the members of this committee of the extent of navigation which the falls of Ohio obstruct. The great and increasing population in the West, that is interested in the removal of this obstruction, is greater than is generally known. All the valley of the Mississippi, amounting to six millions of people, or upwards, are more or less directly interested in this improvement. The importance of this work, and the interest the people feel in it, ought to attract the attention of Congress to it, and cause them to purchase the stock, and make the canal free to the public.

But, Mr. Chairman, the most important national work in all the West is the improvement of the Mississippi river. My congressional district borders on the Mississippi; and that part of the river which has acquired for itself, by the destruction of such a number of boats, the name of the "boat grave-yard," is located in my district. So, I consider it my imperious duty to urge this subject respectfully on the consideration of Congress. And I have no hesitation in saying, that, if Congress will give the subject their deliberate consideration, a large appropriation will be made to remove the snags from this river.

I have no doubt there is more wealth floated on the Mississippi than any other river in the United States; and the commerce is increasing on it every year. This will be readily conceded, when we take into consideration the fertility and extent of the country which this river and its tributaries water. The variety of climate, and the extreme productiveness of the soil, together with the energy and industry with which this region of country is cultivated, furnish more surplus for exportation than any other section of the Union. There were navigating the Mississippi and its tributaries, in 1840, 437 steamboats; and more than two hundred millions worth of property was shipped yearly on the Western waters.

I pretend not to enter into the detail of the great amount of property that is exposed every year, and every day, to the uncertainty of the navigation o these Western waters. It is more than any one, who does not see it, could scarcely believe; and the losses and destruction of steamboats are also almost incredible. Although I reside not far from the scene of destruction, and hear much on the subject, yet I was astonished to see on the Mississippi, for twenty or thirty miles up from the mouth of the Ohio, such numerous hulls and wrecks of the finest steamboats that navigated the Western waters. I saw and heard of such destruction of property, and saw, myself, the remains of so many of the most splendid and costly steamboats, that I consider it my solemn duty to state these facts to the committee. And I am confident, if the members of the committee had seen this ruin and loss of property, as I did, that they would not hesitate one moment to make a liberal appropriation to improve the river.

Mr. Chairman, I will exhibit a statement of facts, which I have no doubt are correct. Even

H. of Reps.

this short epitome of cases will give some faint idea of the realities:

"WESTERN NAVIGATION.--The following facts for the consid. eration of Congress are furnished in a report, made by a com. mittee at a public meeting in St. Louis, in the nature of a memorial to Congress: The number of steamboats sunk in the Mississippi and Missouri rivers, in the year 1839, was forty; in 1840, forty-one; in 1841, twenty-nine; and in the present year, twenty eight. The aggregate value of these boats and their cargoes was $3,540,000, and, in addition, the repairs of damages by snags, where the boats have not been sunk, have averaged $10,000 per year. Between the 11th of September and 13th of October, (less than five weeks,) eight fine boats, with their cargoes, were sunk between St. Louis and the mouth of the Ohio. The aggregate of the loss by the sinking of these eight boats was $231,000,"

"STEAMBOAT DISASTERS.--The steamboat Saratoga was sunk in the Mississippi last week. Passengers and baggage saved; boat and cargo lost. The Patrick Henry was snagged near Memphis--no lives lost. The Boston was also snagged near the same place, and much of her cargo lost--about $10,000 worth. The Fame stove. The Scioto Belle snagged and much injured. The steamboat Rialto was snagged about thirty miles from Little Rock, and sunk; boat lost, and cargo much damaged."

I would ask any man, had these losses of boats and property, to the amount of $3,540,000 within four years, occurred on the Hudson river, between New York and Albany, if the forty Representatives of the Empire State would not have had appropriation after appropriation to improve the Hudson? The justice and propriety of the improvement are the same, whether in the Hudson or the Mississippi; and, if any difference, it is more just to improve the Mississippi, because there is inore commerce on it than on the Hudson. The people in the city of New York, who were injured by a fire in 1836, were relieved by Congress; and why not relieve the people of the Mississippi valley from these losses, as well as in other sections of the Union?

I would compare the necessity and utility of the improvement of the Mississippi to the Hassler sur. vey of the coast. No one says there would be any loss of property or life incurred by the delay for a while to survey the coast; and it will not, under the Hassler administration, be completed in less than fifty or sixty years; so that several generations will pass away before the country will experience the full benefit of the work. The Mississippi, of all the rivers in the Union, is the easiest improved. A small sum will remove almost all the snags which have caused the losses, and improve. upper and lower rapids on that river.

Mr. Chairman, my conclusion is, that, on the strictest principles of economy, the appropriation for the survey of the coast should be applied for the improvements in the West, and the officers of the Government should prosecute the survey of the coast without expense to the nation.

NOTE.-The appropriation was stricken out.

SPEECH OF MR. PAYNE,
OF ALABAMA.

In the House of Representatives, December 20, 1842-
On the bill to repeal the bankrupt law.
The bill to repeal the bankrupt law being under
consideration-

Mr. PAYNE, of Alabama, rose and said:

Mr. SPEAKER: When the bill establishing a uniform system of bankruptcy was under consideration, I had strong objections to the passage of the measure. As I was prevented from stating those objections to the House and to the country then, I avail myself of the opportunity afforded to do so

now.

One objection, which operated upon my mind, was the retroactive feature of that law. Had it been prospective in its operation, and conformable in other respects to the Constitution, it would have received my support; nor would I now oppose a permanent system of bankruptcy freed from the odious objections to which the present one is liable. That a bankrupt law, freed from those objections, could not have passed then, we all know; consequently, we were forced to vote upon the law as it now is, with all its imperfections. I believed then, and I believe now, that Congress has not the power to pass any law which is retrospective in its operation. Nor will it be pretended that it belongs to the legitimate powers of this Government to pass a law impairing the obligation of contracts; yet, this famous bankrupt law was retrospective in its operations, and did impair the obligation of contracts, by releasing the debtor from the payment of his debts without the consent of his creditor. Another objection which I had to the law, was

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