The production of gold and silver from the mines of the United States since 1860 is shown in the following table.

The silver product is given at its commercial value, reckoned at the average market price-based on daily quotations-of silver each year as well as its coining value in United States dollars.

WORLD'S PRODUCTION, 1895, 1896, AND 1897.

The production of gold and silver in the world for the calendar years 1895, 1896, and 1897 was as follows:

TREASURY DEPARTMENT,

OFFICE OF THE REGISTER, Washington, D. C., October 21, 1898.

SIR: I have the honor to submit the annual report of the business of this office for the fiscal year ended June 30, 1898.

The business of this Bureau is divided between two divisions, viz, division of loans, and division of notes, coupons, and currency, each having charge of the work indicated by its respective designation.

DIVISION OF LOANS.

The division of loans of the office of the Register of the Treasury is always in direct contact with the business men of the country—those dealing in United States securities, as well as with the thousands of individuals who have invested in and are holders of United States bonds.

The duties devolving upon the division pertain to the issue, transfer, and exchange of United States bonds, the preparation of schedules for the quarterly dividends of interest, and the keeping of ledger accounts with each individual holder of registered bonds in the United States and foreign countries, etc.

The fact that promptness is necessary when dealing with securities of the kind mentioned above makes it necessary that there shall be no delay in the transfer of bonds; and it affords me pleasure to state that the employees of this division are thoroughly in accord with the idea that it is necessary to clear their desks each day of the accumulated matter thereon, so that the work is always current, always in hand, and always finished (except as to the cases requiring investigation) at the close of the day. It has required no urging to bring about this state of affairs; it has long existed, and as a consequence it has become a

recognized fact with the business men of the country that bonds received for transfer one day are due for return by succeeding mail, all of the work necessary to a change of title having been accomplished in the meantime. This speaks well for the promptness and alertness of the clerical force, and they are to be commended for faithful work cheerfully performed.

During the current year nothing of an extraordinary nature occurred in the operations of the division. The work of the 3 per cent loan of 1898 was begun, so far as this office is concerned, about the 28th of June. At the close of the fiscal year it had only progressed far enough to show that the undertaking was a stupendous one. This division was removed to the new city post-office, and its force increased from 15 people to upwards of 200. The work of issuing the bonds was then begun, and with the close of June the fact was demonstrated that the greatest piece of clerical work ever undertaken by this or any other Government was successfully begun.

The history of this division's share in that work will appear in the next annual report. Aside from the beginning of the work on the war loan, nothing of an extraordinary nature occurred in the operations of the division during the past year.

Following is appended a table showing the numbers and amounts of United States and District of Columbia bonds of various kinds issued, canceled, etc., during the year as recorded upon the books of the division:

STATEMENT SHOWING THE NUMBER AND AMOUNT OF UNITED STATES BONDS ISSUED DURING THE YEAR ENDED JUNE 30. 1898.

STATEMENT SHOWING THE NUMBER AND AMOUNT OF UNITED STATES BONDS CANCELED DURING THE YEAR ENDED JUNE 30, 1898.

STATEMENT SHOWING THE NUMBER AND AMOUNT OF UNITED STATES BONDS CANCELED DURING THE YEAR ENDED JUNE 30, 1898-Continned.

TABLE SHOWING, IN SUMMARY FORM, THE NUMBER AND AMOUNT OF BONDS ISSUED AND CANCELED AND THE TOTAL NUMBER HANDLED DURING THE LAST TEN YEARS.

As it has always been considered by the Department that registered bonds are safer for the payee to handle than coupon bonds, a regulation has long been in vogue permitting the holders of the latter class of securities to exchange them for the former. This is done by forwarding the coupon bonds to the Secretary of the Treasury, accompanied by a letter of transmittal, requesting the exchange, and giving name and address of the payee for the registered bonds. During the current year coupon bonds to the amount of $12,219,150 were forwarded for exchange as against $17,600,800 last year. This falling off is accounted for by the fact that when a loan is placed, the greater part of it (a ratio of 8 to 1, probably) goes out in coupon bonds. The dealers seem to prefer the coupon bonds, as they are payable to bearer, but when the bonds reach the hands of the purchasers who are making permanent investments, registered bonds are preferred and the coupon securities gravitate toward the Treasury for exchange. After a year or two the bonds usually find their way into the hands of permanent investors, and the exchanges gradually increase in amount. For the next year or two the exchanges will be heavy, as the 3 per cent loan, now being placed, is especially freighted with coupon bonds.

During the year the following District of Columbia bonds were redeemed:

SPANISH INDEMNITY CERTIFICATES.

As a matter of special interest at this time, the short history of the origin of the Spanish indemnity certificates, embraced in the last annual report of the Register of the Treasury, is repeated:

Under a convention between the United States and Spain, concluded at Madrid, February 17, 1834, a commissioner was appointed, who awarded to certain claimants against Spain the aggregate sum of $599,850.28. The claims in question arose from the seizure of vessels and cargoes belonging to American citizens by privateers, or from the seizure and confiscation of the same in the ports of Spain and its colonies. In each case the Spanish courts has approved of such action.

The treaty was intended to cover claims remaining unsettled at the date of the prior treaty of February 22, 1819, or which had arisen since that date up to the date of the signing of the convention on February 17, 1834. It claimed to be a full settlement of all claims of whatever class, denomination, or origin then at issue. Suitable legislation for carrying out the treaty was enacted by Congress in an act approved June 7, 1836. The United States agreed to receive and transmit to the proper parties such amount of principal or interest as might be forwarded by Spain. The sum of $28,500 has been received annually, through the Department of State, and divided pro rata among the holders of this stock. The fifty-eighth installment has not yet been paid. The transfers from one owner to another for the last ten years are shown in the following table:

The third installment of certificates, showing the indebtedness of the Government on account of the Cherokee lands, issued under the act of August 15, 1894, and amounting to $1,660,000, was redeemed in full, the same having become due March 4, 1898.

The following issues of bonds in aid of the construction of the various branches of the Pacific railroads matured during the year:

Below is a statement showing the number and amount of bonds received from the Bureau of Engraving and Printing during the year: Loan of 1925, coupon, 200 sheets, amounting to $200,000; loan of 1904, registered, 5,000 sheets, amounting to $4,100,000; loan of 1907, registered, 14,760 sheets, amounting to $10,290,000; loan of 1925, registered, 9,000 sheets, amounting to $54,000,000; Pacific Railroad, registered, 430 sheets, amounting to $3,250,000; District of Columbia 3.65 per cent loan, registered, 400 sheets, amounting to $1,600,000. The total number of bonds received was 29,740, aggregating $73,440,000.

It is always necessary that a stock of bonds, unsigned, and not filled in, should be kept on hand, in order that the demand occasioned by the transfers and exchanges may be promptly met.

It is no small part of the duty of this division to prepare the sched ules for the payment of the interest upon the various loans. These schedules are delivered to the Treasurer of the United States, who from them draws the checks, which he forwards to the persons entitled to receive them. Upon most of the loans the interest is payable quarterly, and the work of preparing the schedules each quarter is an enormous

one.

TABLE SHOWING ISSUES AND REDEMPTIONS OF UNITED STATES INTEREST-BEARING NOTES AND CERTIFICATES, AND AMOUNTS OUTSTANDING, OF EACH CLASS OF THESE SECURITIES, TO JUNE 30, 1898.