their arrival, and of securing the attendance of competent officers, clerks, and labourers, to take charge of the same. The experience of three years fully proves that the receipts from storage at the usual rates, and no other should be charged, will not defray the expenses of the system. A statement is also presented, (marked Q.) showing the value of dutiable merchandise re-exported from 1821 to 1849, from which it will be seen that the total amount of such exports during that period was $293,716,670, or an annual average of $10,128,161. From the 1st December, 1846, to 30th June, 1849, the aggregate exports of dutiable merchandise from warehouse amounted to $7,213,810, or an annual average of $2,792,439. In these exports from warehouse there is included the merchandise that was imported from foreign countries and transported to Canada; also the wheat, wheat-flour, &c., that have been transported from Canada, and the salted fish, &c., from other British North American provinces intended for shipment from our ports to foreign countries. During the three years preceding the enactment of the warehousing act, viz. in 1844, 1845, and 1846, the total exports of dutiable merchandise amounted to During the three following years, 1847, 1848, and 1849, these exports amounted to $14,656,816 17,556,182 The increase of exports, which appears from this statement, to the extent of more than two millions of dollars, is made up of the wheat, flour, fish, &c., from the British North American provinces, and merchandise transported under the transportation act of 3d March, 1845, before referred to. From the returns made to this department, and the quarterly statements published, it is believed to be apparent that the operation of the warehousing act has not been beneficially felt in the general business of the country. The only descriptions of merchandise that will bear unnecessary and circuitous transportation are the more valuable articles of manufactures, and these have not, to any considerable extent, sought a deposite in our warehouses with a view to re-exportation. Experience every where demonstrates that the commodities which may with advantage be deposited in public warehouses are mainly such as are needed for the consumption of the country for food or manufacture. With the present frequent and rapid communications by steam with all parts of the commercial world, it cannot reasonably be expected that merchandise to any extent will be sent to our warehouses to await an export demand. As an illustration of these reniarks, reference is made to the published quarterly statements of the value of the merchandise in all the public warehouses, (see table hereto annexed marked R.) from which it will be seen that the largest amount at the end of any quarter was $7,830,010 00 5,742,166 00 And the average amount at the end of each quarter was dise at the end of any quarter was 2,501,394 35 1,800,100 52 And the average amount at the end of each quarter was From these several statements it appears that the practical operation of the warehousing act is a return to the system of credit upon duties, under a new name and form. The fifth section of the act of 3d March last, provides "that all imports subject to duty, and whereon the duties are not paid when assessed, shall be deposited in the public warehouse, from whence they may be taken out for immediate exportation under the provisions of that act, at any time within two years; and, on payment of the duties, may be withdrawn for consumption within the United States at any time within one year; but no goods subject to duty shall be hereafter entered for drawback, or exported for drawback, after they are withdrawn from the custody of the officers of the customs." The effect of this section, if rigidly construed, would be to deprive the importer of the privilege of the transportation of merchandise under bond from one district to another, and of re-warehousing the same, under the provisions of the second section of the warehousing act, and thereby deprive a large portion of our citizens of any participation in its benefits. Under the belief that this was not the intention of Congress, no such instructions have been issued. SUB-TREASUry. The question of the expediency of continuing the system established by the act entitled "An act to provide for the better organization of the treasury, and for the collection, safe keeping, transfer, and disbursement of the public revenue," approved 6th August, 1846, is respectfully submitted to the wisdom of Congress. Experience has demonstrated some of the requirements of the act to be productive of great inconvenience-if, indeed, there be not some which, under the influence of strong necessity, are often violated. Disbursing officers, to whom drafts for large sums are issued, are, by existing arrangements, obliged to receive the full amount of said drafts at one payment from the proper assistant-treasurer, while their expenditures must be made in small sums from time to time. The custody of the money is thus forced upon them, without any provision for its convenience, or even safety. If the money is to be disbursed at points distant from the place where it is received, the burden of transferring it is in like manner imposed on them. If they adopt the usual and customary mode of keeping and transferring money, they violate the law. If they undertake themselves its custody and carriage, they incur great risk and responsibility. The actual carriage of coin from place to place, in the same town, is burdensome; especially in those southern ports where silver is the coin chiefly in use. The number of clerks authorized by law to be employed is believed to be much too limited. To alleviate some of the inconveniences attending the system, I respectfully suggest, if it is to be continued 1st. That any person having a draft on an assistant-treasurer be permitted to deposite his draft with the assistant-treasurer, and draw for the amount from time to time in such sums as he may desire, upon his own orders, payable to any person or persons; provided, that the whole amount of the draft should be actually drawn within a short period, say two weeks after the deposit of the draft. 2d. That any disbursing officer having a draft on an assistant-treasurer should be permitted to deposit such draft, and draw for the amount in like manner; provided that each order should be presented for payment within two weeks after its date. These provisions would, it is believed, effectually prevent the checks or orders being used as currency. The proposed system would render necessary an increase of the force employed in the offices of the several assistant-treasurers, and ought to be accompanied by an increase of compensation. The inconvenience arising from the accumulation of coin at points where it is not required for the public service, is very great; but it seems to be inseparable from the system itself. To pay a public creditor with a draft on a remote office, which he cannot sell but at a discount, or collect in person without a journey, would be unseemly, and the government has no means itself of making transfers in such cases, other than the despatch of special messengers, at some expense and much risk of loss. The insecurity of the actual custody of the public money-confided, as it is, at the several points, to the vigilance and fidelity of one assistant-treasurer, and he inadequately compensated-is a subject which should attract the serious attention of Congress. MISCELLANEOUS. By the third section of the act of 3d March, 1849, questions arising in respect to the refunding of duties collected in Mexico, or the remission of penalties imposed, on the ground that the collection was improper or the penalties wrongfully enforced, are referred to the decision of the secretary of the treasury. I respectfully submit that, as these duties and penalties were collected and imposed by officers of the army and navy, the right to determine the propriety of their collection or imposition would be better vested in the departments of war and the navy. In some, probably many of the cases, appeals were originally taken by the parties interested to the head of one or the other of these departments, and these appeals in some way formally or informally disposed of. It is embarrassing for the secretary of the treasury to determine how far that disposition is to be considered as intended to be final, and, if so intended, how far it is his duty under the law to re-open the case and decide it anew. In consequence of the recent alteration of the British navigation laws, British vessels, from British or other foreign ports, will, (under our existing laws,) after the first day of January next, be allowed to enter in our ports with cargoes of the growth, manufacture, or production of any part of the world, on the same terms as to duties, imposts, and charges, as vessels of the United States and their cargoes. I deem it proper to invite the consideration of Congress to the existing provisions of law regulating the coasting trade of the United States, with a view to such modifications thereof as may be deemed expedient and proper to meet the altered condition of that trade which has arisen since the law regulating it was passed. The law by which this trade is now regulated was enacted on the 18th of February, 1793, and its essential provisions have not been changed by subsequent legislation. Within the period elapsed since the date of the law, Congress is aware that great and important changes have taken place in the magnitude, character, and medium by which the coastwise and interior commerce of the country is carried on, owing to the increased facilities of transportation by the use of steam power, without any corresponding changes in the law to meet the altered condition of the trade. Hence a rigid enforcement of the existing requirements of the law produces much delay and vexatious embarrassment to persons engaged in the prosecution of the trade, besides in some cases, particularly where carried on by the use of steam power, proving seriously detrimental to their interests, and thus presenting a just appeal for some further legislation on the subject. It is confidently believed that some of the requirements of the law might be dispensed with, and others changed or modified, so as to relieve the trade from existing restrictions and embarrassments, without hazarding the security of the revenue. Should Congress feel disposed to act upon this subject, the department will, if so required by that body, submit views and recommendations in detail calculated, in its opinion, to accomplish the object desired. The operations of the coast survey, under the superintendence of Professor Bache, have been diligently and successfully prosecuted during the past season, with satisfactory results in the respective branches of this important national work. The report of the superintendent, containing a detailed account of the extension of the work during the season, and its present condition, will be submitted to Congress at an early period of the session. Our lighthouse establishment has gradually enlarged until it has become one of great magnitude and importance. In July last it numbered two hundred and eighty-eight lighthouses and thirty-two floating lights. Of these, sixty-one are located upon the shores of the northern lakes and river St. Lawrence. Additional lights have since been erected under appropriations made by the act of 3d March last, and others are in process of erection, a special report of which will be submitted to Congress without unnecessary delay. Due attention has been given to the various local works provided for in appropriations placed at the disposal of the department by acts of the last and previous sessions of Congress for the erections of custom-houses, marine hospitals, and for providing the facilities contemplated by Congress for the preservation of life and property from loss by shipwreck. The custom-house structure at New Orleans has progressed throughout the past season without interruption, and as rapidly as was deemed prudent with due regard to the massive character and general nature of the work. The foundations have been laid, and the walls on the four sides of the building carried up to the plinth course of granite, which has been completed around the entire structure. The unexpended balance of the appropriation for this work will not, it is believed, prove sufficient to carry on the same beyond the close of the present month. It is therefore recommended that additional means be provided by Congress at an early day for the continuous prosecution of the work. The structures for similar objects at Savannah, Georgia, and Eastport, Maine, are also in a state of forwardness. In the former case the walls of the basement, and of the principal story, are completed, and the walls of the second story will be ready for the cornice by the first of February next, and, in the opinion of the superintendent, the whole structure will be completed in August, 1851. The custom-house at Eastport has advanced to the flooring of the second story, which has been laid, and the building covered in temporarily for the winter. A cus tom-house building at Portland, in the state of Maine, has been purchased, as provided for in the general appropriation act of the last session. The purchase of the buildings for a similar purpose at Erie, Pennsylvania, as contemplated by the same act, has not been made for want of an act on the part of the legislature of that state giving its consent to the purchase, as required by the joint resolution of Congress of the 11th September, 1841. Some unavoidable delay has occurred in completing the purchase of the site selected by my predecessor for the proposed custom-house structure at Charleston, South Carolina, occasioned by the requisite investigation and preparation of the title and transfer of the property. It is now completed, and, having been approved by the Attorney General, the proper conveyances have been duly executed, and the purchase-money paid. Proposals have also been invited for suitable designs, or plans, with specifications and estimates for the contemplated building. next. The edifices erecting for marine hospitals at Cleveland, Ohio, Pittsburgh, Pennsylvania, and Louisville, Kentucky, are so far advanced as to warrant the belief that they will be ready for the reception of patients in the month of July or August But little progress has been made in the buildings designed for the same object at Chicago, Illinois, Paducah, Kentucky, and Natchez, Mississippi, preliminary examinations having delayed the commencement of the work until late in the season. Nothing has been done towards the erection of the hospital edifices for which appropriations were made at St. Louis, Missouri, and at Napole on, Arkansas. In the one case, because of the failure to secure a title to the site formerly purchased for the object at St. Louis, and the impracticability of procuring another in time to commence the building consistently with the joint resolution of Congress dated 10th September, 1841. In the other, because of the insalubrity of the site heretofore selected at Napoleon, and the hazard to which the structure would be exposed from the overflow of the waters. In connexion with the subject of marine hospitals, I would remark that experience has fully demonstrated that the resources of the fund arising under the acts of 16th July, 1798, and 3d May, 1802, for the relief of sick and disabled seamen, with the aids from time to time derived from the bounty of Congress, are inadequate to meet the demands of relief. As a necessary consequence, the department is compelled to adhere to restrictions imposed by my predecessors in office, and to follow their example in like expedients, often arbitrary in character and partial in operation, yet essential to the proper control of the expenditures. In view of these embarrassments, of the increased charges likely to arise from the establishment and organization of public hospitals, and looking to the favourable regard heretofore entertained for the claims of men who, by their labours and perils in peace and war, contribute so largely to the wealth and power of the nation, means are asked in the estimates sufficient to provide for their destitution and sickness in all the ports of the Union. The moneys placed at the disposal of the department for providing means for the preservation of life and property, by the act of 3d March last, with the exception of a portion expended for similar facilities at the west end of Fisher's Island, in Long Island Sound, contiguous to the place of the wreck of the steamer Atlantic, have been applied to that part of the coast of New Jersey lying between Little Egg Harbour and Cape May, and to that part of the coast of Long Island lying eastward of the entrance into New York bay; and have been expended in the construction of life-boats and cars, the erection of houses at appropriate distances from each other for their preservation, in the purchase of mortars, carronades, rockets, &c., and other approved apparatus for communicating with stranded vessels. In giving effect to the humane and munificent intentions of Congress, as manifested in successive appropriations for these purposes, the department has had the active co-operation of the "Life-Saving Benevolent Association of New York," and of the Board of Underwriters of Philadelphia. Fuller details, in regard to the works thus specially referred to, will be found in papers marked V. Communications have been addressed to the department showing the danger to be apprehended to the hospital building at Cleveland, from the sliding or falling in of the bank facing the lake, and urging the immediate expenditure of a portion of the moneys appropriated for the structure in a way calculated to arrest the further encroachment of the water. Yielding to these appeals, a sum not exceeding one thousand dollars was authorized to be applied in the way proposed. A further appropriation for the object is needed, and is respectfully recommended. By the act of 12th of August, 1848, six thousand dollars were appropriated for the erection of a beacon light on the South-west Ledge, in the harbour of New Haven, Connecticut, or for the removal of the ledge, as the department should deem best. In the belief that the interests of commerce dictated the removal of the obstruction so as to admit the passage of vessels drawing sixteen feet water, rather than the erection of the light, measures were taken to contract for the work; but, as the offers exceeded the appropriation by several thousand dollars, the undertaking has been postponed until adequate means are provided by Congress. I transmit for the information of Congress an exhibit (marked S) showing the business and coinage of the mint at Philadelphia from 1st January to 1st November, 1849. The statements of the accounts of the mint, as required by the 7th section of the act of 1792, and the assays of foreign coins required by the acts of 10th April, 1806, 25th and 28th June, 1834, and 2d March, 1843, will be transmitted in a future communication. Reference is made to statement marked E, for the information required by the 22d section of the act of 28th January, 1847. The mineral resources of our recently acquired possessions in California have opened an extensive field for the development of American enterprise. Some thousands of our countrymen, in the pursuit of profitable labour and advantageous commerce have found their way thither; and already vast regions, heretofore unpeopled and unexplored, are contributing to the metallic wealth of the world. Constituting as they now do a portion of our territory, it is due to our fellow-citizens who inhabit them that their industry and enterprise should be cherished by wholesome laws. First in importance, as respects its commercial and financial bearing, the establishment of a branch of the mint of the United States at San |