the issuing bank, and forcing the better currency of gold and silver out of the market.

The United States having placed her receipts and expenditures upon the constitutional currency of gold and silver, it is in the power of the States, by prohibiting the banks from issuing and circulating notes of a small denomination, and by making the constitutional currency the basis of their own receipts and expenditures, to give the victory in all time to the constitutional currency, keep a sufficiency in the country for all the purposes of a circulating medium, and prevent the evils and losses that always attend an inferior currency. The disorder now felt in money matters grows out of the failure of many of these banks, and the curtailment of the circulation and discounts of others, which, in the last six months, must have reached forty or fifty millions of dollars; and in part out of the effects produced by the large imports, and in part out of the want of confidence between lender and borrower. It cannot be attributed to the shipment of gold and silver, which is nothing but a consequence growing out of these causes.

The independent treasury has been administered in strict accordance with the provisions of the law, in all respects, as stated in my former report. There has been found no difficulty in its operation, nor in complying with any of the provisions of the law. The opening the Treasurer's office at Washington, and the offices of the several assistant treasurers and public depositaries, as places of deposite for the disbursing agents of the government, has been attended with signal success, and resulted in great advantage to the executive departments and the disbursing agents. The table, 35, which accompanies this report, shows the growth of the deposite system; the number of disbursing agents who deposite, with the places and amount of deposite at different periods. It will be seen that in September these deposites exceeded $3,500,000; whilst all disbursing agents who could have not availed themselves of the privilege, and many disbursing agents could not do so, because there were not depositaries convenient to their location. The returns of these deposites furnish the means of ascertaining the operations of disbursing agents, and whether the funds are kept in readiness to meet the appropriations; whilst, upon the removal, resignation, or death of a disbursing agent, the amount on deposite passes at once into the United States treasury and to the credit of the depositor, without the procrastination caused by having to await a settlement by the agent or an administration; and can at once be applied to the purposes

of the appropriation through another agent. The money thus on deposite is as safe and secure as that in the treasury, and is without risk to the depositor; and it is right the government, and not the disbursing agent, should be at the expense and risk of keeping the public money until actually disbursed. It is to be regretted that all disbursing agents, conveniently situated, have not availed themselves of the right to deposite, because it furnishes cause of mistrust as to a strict compliance with the law, both in respect to the deposite and use of the public money, and does not give the United States the benefit of promptly obtaining the amount not disbursed upon the removal, resignation, or death of the incumbent.

The work on the coast survey continues to make good progress, and the means appear to have been carefully and economically used. If the work shall have the continued support of Congress for a few years more, the fullest and most reliable knowledge will be obtained of our extensive coast, and of all our harbors, to the great advantage of our navigation and commerce. The work is recommended to the consideration of Congress, with the belief that no more convenient time will be found for its continuance and completion, nor a more able corps of officers to which it can be confided.

The report of the Light-house Board, No. 37, also accompanies this report, and is referred to for the detailed operations for the past year. The business has been promptly and faithfully attended to in all its branches, and the system made as efficient as the time and means would allow; and it is recommended to the continued favor of Congress, in order that increased facilities may be given to navigation in all its branches and connexions.

Under the appropriation of $20,000 for continuing the system of protecting human life from shipwreck on the New Jersey coast, and $20,000 appropriated without specification, (which the department has thought advisable to expend on the coast of Long Island,) Mr. S. C. Dunham was appointed for the New Jersey coast, and Mr. J. N. Schellinger for the Long Island coast, with instructions to examine existing stations, and report what would be needed to put them in a perfect state, and to select intermediate stations, so as to make the stations on each coast five instead of ten miles apart. Both these agents have reported, and are now employed in building the houses at the new stations, and providing the articles required for them and the old ones, and

the additional boats have been built, and are being shipped. to the new stations.

Under the appropriation of $12,500 for locating boats at different points on Lake Michigan, twenty-three boats have been purchased and sent to the places indicated in the act. Boats for the two remaining points will be purchased and sent so soon as persons can be found to take the proper care of them; for which purpose the necessary inquiries are now being instituted.

The late melancholy disaster to the ship "New Era" has shown the inadequacy of the mortars heretofore used for throwing lines to vessels in distress and establishing a communication between the wreck and the shore. Experiments are now being made, with a view of providing a mortar mounted, and capable of throwing a ball and line the requisite distance. The appropriations will not be sufficient to place all the stations in an entirely effective condition.

The report, No. 38, from Captain A. H. Bowman, of the engineer corps, in charge of the construction of customhouses, marine hospitals, &c., which accompanies this, gives information in detail of all that has been done towards the completion of those under the direction of this department since the date of my last report, and of the working of the system of operations, and affords all necessary information upon that subject. The attention of Congress is particularly called to that part of the report which relates to the custom-house being built at New Orleans. It satisfactorily appears that the foundation upon which that custom-house is being built is not sufficient for the weight and character of the superstructure, as specified in the plan according to which Congress has directed it to be built; and that there is urgent necessity to modify the plan and remedy the evil as far as practicable, and a modification of the plan as indicated by Captain Bowman is recommended.

The attention of Congress is also called to the report of Captain Bowman upon the site for a custom-house at Detroit; and it is recommended, for the reasons stated by him, that authority be given to sell the present lot, and purchase a more suitable one.

The department has selected sites for the custom-houses at New Haven, Connecticut; Burlington, Vermont; Oswego, New York; Toledo and Sandusky, Ohio; Chicago, Illinois; Milwaukie, Wisconsin; and Wheeling, Virginia, in accordance with the report of Captain Bowman, No. 39, accompanying this, he having been sent to examine the sites offered in the several cities, and confer with the commissioners and

others upon the subject; and steps are being taken to obtain the titles, with a view to early action in having the buildings constructed. The table, No. 40, exhibits the sites and prices agreed to be paid in the several cities. No report was made on the site at Buffalo, New York; Cincinnati, Ohio; and Burlington, Iowa, for the reasons stated in the same report. There has not been time for information from New Orleans since instructions were issued to obtain offers for a site for the marine hospital there.

The department having learned of an embezzlement of bullion by one of the officers in the mint at Philadelphia, determined to have the mint and course of business investigated, and a detailed report made with a view to the better security of its operations. Messrs. Richard Smith and J. C. Pickett were appointed for that purpose. A copy of the letter of appointment (No. 41) and their report accompanying this, with a copy of the new regulations which the Director of the mint has adopted, with the sanction of this department, for the government of the mint and branches. They are submitted to Congress for such additional legislation as the circumstances seem to require.

The condition of the mint at Philadelphia, as to safety as a depository and security from fire, was examined by Captain Bowman, under the directions of this department. His report (No. 42) accompanies this, and states the necessity of giving the same greater security as a mint and depository, and of its being made fire-proof; and estimates are submitted for the alterations, and also for improving the vaults of the Treasury building at Washington. In Captain Bowman's general report it is stated that the appropriation for the repairs of the branch mint at New Orleans is not sufficient to make it thoroughly fire-proof and secure as a mint and depository, and estimates are submitted for that purpose. The attention of Congress is called to the condition of the mint at Philadelphia and the branch mint at New Orleans, and of the vaults in the treasury, and such appropriations recommended as will make them fire-proof and perfectly safe. The propriety of an annual appropriation, for keeping in repair the vaults and safes for the assistant treasurers and depositories is submitted.

The table, 43, which accompanies this report, exhibits fiftyfour places, including the marine hospitals, where relief is afforded to sick and disabled seamen, under the direction of this department, with the average cost per day of each patient at the several places. It appears the average cost is fair and reasonable at most of the places, but at others it

greatly exceeds what it should be. Every effort has been made to bring the cost within fair and reasonable limits, but the greatest discrepancies are found in those places where there are but few patients to accommodate, and where it has been found impossible to reduce the item constituting the largest average in the expense, such as compensation of surgeons, &c.

The report of the supervising inspectors of steamboats, under the act of 30th August, 1852, No. 44, accompanies this report, as also a letter from Mr. William M. Gouge, charged by this department with the duty of attending the meetings. The department also procured Professor Booth, melter and refiner at the mint in Philadelphia, to experiment upon fusible alloys, in connexion with Evans' safety valves, and otherwise, with a view of testing the same, and in order to have reliable alloys should it be determined to continue their use. His report, No. 45, also accompanies this, and gives valuable information upon the subject The attention of Congress is called to the suggestions in the report of the supervisors, the letter of Mr. Gouge, and the report of Professor Booth. The department has been furnished with the table, 46, which accompanies this report, showing the loss of sixtythree steam vessels from the 1st of January, 1854, to June of the same year, with the causes thereof. This table exhibits ten by collision, seventeen by fire, five from ice, twenty-three from snags, and states nineteen of them were lost from inattention and negligence, thirty-one from accident, one from being unseaworthy, and only two from unavoidable causes. This exhibit proves that much remains to be done, under the steamboat act, to secure capable and efficient officers on steam vessels for the preservation of life. These, and the recent losses upon the ocean, properly raise the question whether the law. should provide greater security in the construction of steampassenger vessels, or leave them, as now, to the ship-owners.

In my former report the attention of Congress was called to the inconvenience arising from two sets of local inspectors, one under the act of 1838, and the other under the act of 1852, and the propriety of having but one set under the same superintendence. The regulations which the supervising inspectors are authorized to make should also have the approval of the department, and its supervision in enforcing them.

The propriety of providing for supervising inspectors on the Pacific coast was also stated, and is again recommended. The attention of Congress is also called to the penalty for collision, under the act of 1838, which only applies to the