far beyond the rates ruling during the period of the late hopeless struggle of our own manufacturer to sustain himself. The effects of this state of things are felt in the very large increase of duties consequent upon the suddenly enhanced prices of iron, which must be paid by our consumers, and with the most unfavorable influences upon our numerous railroad enterprises now in progress; while it is attended with no corresponding benefit to those whose capital," embarked in this branch of manufacture, has been totally lost. On the other hand, by this rise in the prices of iron, it may be expected that a new stimulus will be given to that branch of American labor, which may again be met by similar consequences when it shall have become a formidable competitor with the foreign producer, ending in a destructive reduction in price and a redundant supply. While the foreign commerce of the country and the foreign market for its productions are undoubtedly of great importance, yet they both probably receive an undue share of consideration; for they respectively sink into relative insignificance when compared with our internal and coastwise commerce, and with the home market. There are no records which will enable the department to give the correct amount of our internal and coastwise trade. But some idea may be formed of its vast extent when it is recollected that the annual value of the agricultural, mineral, and manufacturing productions of the country is not less than three thousand millions of dollars, ($3,000,000,000,) as shown by the statistical returns of the late census-a large portion of which is transported by river, canal, or coasting vessels, or on railroads, and which, in the course of trade, changes hands several times before reaching the domestic consumer, making, in the aggregate, an amount of traffic counting by thousands of millions; while the whole amount shipped to foreign countries is but $150,000,000-being only one-twentieth part of the entire production of the country which thus finds an outlet in foreign markets. The single article of coal annually transported coastwise, and in canal boats or on railroads, is of sufficient bulk to furnish full cargoes for four times the quantity of all the American tonnage employed in foreign commerce, and probably affords the means of livelihood to a greater number of persons than the latter. The coastwise trade to and from the American ports in the Gulf of Mexico is of itself probably nearly equal, in point of value, to the entire export of American production to foreign nations. A striking difference between the magnitude and importance of the home market and the foreign one is to be found in the statistics of exports of what is familiarly called the famine year of 1847. There was some difficulty at the time in procuring sufficient shipping, including both American and foreign, to convey our breadstuffs to the famishing nations of Europe; and yet our entire exports during that year of the two principal articles of food, Indian corn (maize) and flour, were only about three per cent. of the former, and about ten per cent. of the latter, estimated on the whole crop produced in the United States, leaving ninety-seven per cent. of the Indian corn, and ninety per cent. of the wheat crop, for the supply of the home market, where it was actually consumed. Our exports of breadstuffs at present are only about one-third of what they were during the above year of unusual demand-exhibiting, in a still more striking contrast, the immense difference between the home and foreign markets, in favor of the former. The mere tolls collected by the canals and railroads on the transportation of merchandise for the internal trade of the country exceed in amount the total value of all the breadstuffs purchased from us by foreign nations. The annual value of the crop of Indian corn, of wheat, and of hay, each respectively, is fully equal to the entire value of our productions exported to foreign countries. The annual amount of the manufactures in the States of New York and Pennsylvania, or in either of those States, greatly exceeds the value of such exports; and even those of the comparatively small State of Massachusetts are fully equal to all the productions of the country consumed by foreign nations. The latter State probably consumes breadstuffs that are produced in the middle and western States to a greater amount than is shipped to all Europe, with the great additional advantage of this being a regular and uniform demand, not depending on European crops or the caprices of foreign governments in the regulation of their commerce and the assessment of arbitrary and ever-varying duties, according to their own actual wants and circumstances. Yet all these immense agricultural, mineral, and manufacturing interests, which are almost exclusively connected with the internal trade of the country and the home market, receive greatly less attention and consideration from the community than the comparatively small amount of our foreign commerce. My views of the beneficial results which would follow a tariff with fixed and reliable, rather than with sliding and consequently uncertain, rates of duties, have undergone no change. I now recur to them as a duty imposed upon me by the acts establishing the Treasury Depart ment. The importations of foreign merchandise (table H) for the fiscal year ending 30th June last amounted to $207,109,738. The exports for the same period were Of domestic merchandise Foreign merchandise re-exported Total exports.... $154,930,447 12,037,043 166,967,490 The imports of specie during the same period were $5,503,544; and the exports of the same, $42,674,135. In tobacco, (table S,) the exports show an increase in quantity of 41,152 hogsheads, and in value of $812,032-having been in 1851 95,945 hogsheads, valued at $9,219,251; 1852, 137,097 hogsheads, valued at $10,031,283. The exports of rice were 119,733 tierces, valued at $2,470,029being an increase in quantity of 14,143 tierces, and in value of $299,102, as compared with the previous year. The exports of breadstuffs and provisions amounted to $25,856,337, being an increase of $3,907,686. The aggregate exports of domestic merchandise show a decrease, as compared with the previous year, of $24,349,585. The exports of specie show an increase of $13,201,383, and an excess of exportation over importation of $37,170,591. (See table K.) MINT. The operations of the mint-particularly at Philadelphia, at which point the greater portion of all gold dust and bullion concentrates for assay and coinage-have been conducted with a remarkable degree of promptness and despatch, such as to remove all cause of complaint on the part of depositors, notwithstanding the enormous amounts of gold dust which have been and still continue to be received at that institution. The coinage at the mint for the year ending 31st December, 1852, was as follows: Gold, 6,094,765 pieces, of the value of.. $51,505,638 50 847,310 00 51,620 94 52,404,569 44 The full returns for the last quarter of the year have not been received from the branch mints but the probable amount of their coinage will be about $4,700,000, of which the proportion of the branch mint at New Orleans will be $3,800,000, and the remainder about equally divided between the branch at Charlotte, North Carolina, and Dahlonega, Georgia. In accordance with the act of last session, proposals have been invited by public advertisements, both here and in California, for the erection of a mint at San Francisco, in accordance with plans prepared with great care under the direction of this department. I, however, have great doubts whether any proposals will or can be made for the erection of a suitable building, and the supply of the needful machinery, for the sum of $300,000, to which amount Congress has restricted the expenditure, including both these objects. Even, however, should proposals be made which would be satisfactory and could be accepted by the department, no progress could be made with the work until Congress authorizes the purchase of a site, and makes the needful appropriation therefor, as, from the best information now in possession of the department, none of the public reserves in that city afford proper and elegible locations for this building. By the act of the 30th September, 1850, making appropriations for the civil and diplomatic expenses of the government for the year ending 30th June, 1851, Congress authorized the appointment of a United States assayer for California, and directed a contract to be made by this department with the proprietors of some well-established assaying works for assaying gold and forming it into bars and ingots, under the supervision of the assayer. A contract was concluded, and ample security required for its faithful performance; and the contractors were limited in their charges for the services rendered by them to the rate fixed by the legislature of California in establishing a State assay office. The department was induced, with a view to furnish, so far as it had the power, a safe and convenient currency to the people of California, to authorize the receipt of the issues of the assay office thus established for public dues, especially as they have all the essential requisites of coin, and as this was believed to be the object of Congress. The general appropriation act of the last session contained a provision by which the further receipt of these issues was prohibited, and, in obedience thereto, the instructions under which they were received were revoked. The department has reasons to believe, from petitions addressed to it by a public meeting of the merchants of San Francisco, and from information received through other reliable sources, that much inconvenience and embarrassment have resulted from this legislation. It remains with Congress, however, to say what relief shall be extended; and the subject is submitted to its consideration. The inconvenience arising from the scarcity of silver coinage still continues, and to such an extent as calls loudly for some legislative action to remedy the evil. Whether the present premium which silver bears, in comparison with gold, arises from the continued heavy influx of the latter, and its consequent depreciated value, or from a special and unusual demand in Europe for silver, or from both causes combined, is not very material to discuss at present; for if it arises from either or both of these causes, there is no reason for believing that there is any present prospect of either being removed, so as to create any reduction in the value of silver. If, as I believe is the fact, this difference in the relative value of the two metals arises from the immense and increased supply of gold which has been furnished from California and Australia, there can be but little doubt such difference will continue to increase, as there is no present indication that there will be a reduced supply from those sources, but, on the contrary, every prospect of a still further increase. This state of things has banished almost entirely from circulation all silver coin of full weight; and what little remains in the hands of the community consists principally of the worn pieces of Spanish coinage of the fractional parts of a dollar, all of which are of light weight, and many of them ten or twenty per cent. below their nominal value. I see no remedy for this great existing evil but the adoption of the principle embraced in the bill which passed the Senate during the last session, making a new issue of silver coinage of such reduced weight as will allow it to circulate with the gold coinage of established weight and fineness. The principal objection which has been urged against the proposed new silver coinage is, that it could not, without a violation of contracts, be made a legal tender for the payment of debts, and that gold would, therefore, hereafter be the only legal tender. It is true that heretofore the laws of the United States have recognised the coin of either metal as a legal tender; and if it was at the option of the creditor to select which he would receive, there would be a very serious objection to changing either the weight or standard fineness of any portion of the coin. But this is not the fact, as it rests with the debtor to say with which description of coin he will pay his debts; and the natural and inevitable consequences of the premium which silver now bears have been to establish, practically, gold as the only legal tender. Nor can any legal or equitable objection be advanced to continuing gold as a legal tender, as it is not proposed to reduce either the weight or the fineness of that description of coin; so that every creditor will continue to receive precisely the same quantity of gold, for any given sum, as at the time he may have made his contract. Nor does the present or any future increased depreciation in the value of gold form any just reason against its being continued as a legal tender at its present weight and fineness; for such depreciation in its actual value, if not in its relative one as regards silver, has been progressing gradually for some centuries. And all that can be said is, that the depreciation is more rapid at this time than formerly; and it is but a natural result of the uncertainty and want of stability in human affairs. In the present state of things, as connected with this subject, not only the public service, but also the wants and convenience of the entire community, require that some measure should be adopted to furnish a silver currency; and the subject is therefore respectfully, but earnestly, recommended to the prompt attention of Congress. I would again call the attention of Congress to the subject of making mint certificates receivable in all dues to the government, and dispensing with the present bullion fund, which is maintained at an annual expense of from $350,000 to $400,000, which might be saved in interest by the application of that fund to the redemption of the public debt, besides the great advantages to the business community and the general trade of the country by throwing the amount of that fund into circulation, instead of keeping it constantly as dead capital in the vaults of the mint. The amount of the bullion fund during the last year has been nearly $7,000,000, and it has been applied to the immediate redemption of mint certificates, so soon as the deposites of gold dust were assayed and their value ascertained, which has generally been in from twentyfour to forty-eight hours after such deposites were made; and the bullion fund was then made good so soon as such assayed gold could be worked into coin, to be again employed in the redemption of other certificates. The plan which the department would recommend would be, to issue certificates, under the authority of Congress, to be duly registered and signed at the treasury, to the needful amount-say six or seven millions of dollars-in sums of $100, $500, $1,000, $5,000, and $10,000 each, payable to the order of the treasurer of the mint, to be distributed in due proportions to the mint and its respective branches, and, so soon as any deposite of gold bullion was assayed, and its value ascertained, to pay the amount to the depositor in the above certificates, except the fractional part of $100, which would always be paid in coin. These certificates, being receivable in payment of dues to the United States, would at all times command their full par value, and would promptly and cheerfully be received on deposite as cash by the banks, and held by them as specie capital, until their customers required them for the payment of duties or lands. They would accumulate principally at the great marts of commerce in the Union, and could be transmitted by mail, by the different receiving officers, to such points as the treasury might direct, avoiding all the risk and expense which now attend the transfer of public funds in specie from points where it is collected and not required for public expenditures. |