of American independence, a commission has been organized, consisting of two members from each of the States and Territories. This commission has held two sessions, and has made satisfactory progress in the organization and in the initiatory steps necessary for carrying out the provisions of the act, and for executing also the provisions of the act of June 1, 1872, creating a centennial board of finance. A preliminary report of progress has been received from the president of the commis sion, and is here with transmitted. It will be the duty of the commission at your coming session to transmit a full report of the progress made, and to lay before you the details relating to the exhibition of American and foreign arts, products, and manufactures, which, by the terms of the act, is to be held under the auspices of the Government of the United States, in the city of Philadelphia, in the year 1876. This celebration will be looked forward to by American citizens with great interest, as marking a century of greater progress and prosperity than is recorded in the history of any other nation, and as serving a further good purpose in bringing together, on our soil, peoples of all · the commercial nations of the earth, in a manner calculated to insure international good feeling. CIVIL SERVICE. An earnest desire has been felt to correct abuses which have grown up in the civil service of the country, through the defective method of making appointments to office. Heretofore federal offices have been regarded too much as the reward of political services. Under authority of Congress, rules have been established to regulate the tenure of office and the mode of appointments. It cannot be expected that any system of rules can be entirely effective, and prove a perfect remedy for the existing evils, until they have been thoroughly tested by actual practice, and amended according to the requirements of the service. During my term of office it shall be my earnest endeavor to so apply the rules as to secure the greatest possible reform in the civil service of the Government; but it will require the direct action of Congress to render the enforcement of the system binding upon my successors, and I hope that the experience of the past year, together with appropriate legislation. by Congress, may reach a satisfactory solution of this question, and secure to the public service, for all time, a practical method of obtaining faithful and efficient officers and employés. EXECUTIVE MANSION, December 2, 1872. U. S. GRANT. REPORT OF THE SECRETARY OF THE TREASURY. TREASURY DEPARTMENT, December 2, 1872. SIR: Whatever degree of success has attended the administration of the Treasury Department during the year is due largely to the ability and fidelity of the officers and clerks of the several bureaus and divisions. There have been some exceptions to the general good conduct of the working force, but the number of these will not be thought large when it is known that more than three thousand persons are employed in Washington, of whom nearly fourteen hundred are constantly engaged in handling coin, notes, and money securities of the Government. Many of these persons are paid fair wages for the services rendered; but others, who fill places of great responsibility, are not by any means. adequately compensated. Officers and clerks of known ability and established reputation are frequently drawn away by offers of better pay elsewhere. This competition will leave the business of the Department finally in the hands of the less valuable part of its officers. A sense of justice leads me to recommend an increase of salaries in many cases, including the salaries of the Assistant Secretaries of the Treasury. Since my last annual report the business of negotiating two hundred million of five per cent. bonds, and the redemption of two hundred million of six per cent. five-twenty bonds, has been completed, and the accounts have been settled by the accounting officers of the Treasury. Further negotiations of five per cent. bonds can now be made upon the basis of the former negotiation. I think it expedient, as a means of giving additional value to the bonds authorized by the Funding Act of July 14, 1870, and additional security to the owners, that registered bonds of every issue should be made convertible into coupon bonds at the will of the holder. When this privilege is granted the desire to reconvert them will cease. The moneys received and covered into the Treasury during the fiscal year ended June 30, 1872, were: From customs Sales of public lands.. Internal revenue... Tax on national bank circulation, &c..... panies.. Customs fines, &c.. Fees-consular, patent, land, &e. Miscellaneous sources.. Total ordinary receipts.. Premium on sales of coin.... $216, 370, 286 77 2,575, 714 19 130, 642, 177 72 6, 523, 396 39 749,861 87 1, 136, 442 34 2,281,095 92 4, 412, 254 71 364, 694, 229 91 9,412, 637 65 Total net receipts . Balance in Treasury June 30, 1871, (including $18,228 35 received from "unavailable" Total available cash... 374, 106, 867 56 109, 935, 705 59 484, 042, 573 15 The net expenditures by warrants, during the same period, were: For civil expenses.... Foreign intercourse Indians Pensions .. Military establishment, including fortifications, Total, exclusive of principal and premium Premium on bonds purchased... $6,958, 266 76 $16, 187, 059 20 1,839, 369 14 7,061, 728 82 28, 533, 402 76 35, 372, 157 20 21, 219, 809 99 42, 958, 329 08 117,357, 839 72 270, 559, 695 91 From the foregoing statement it appears that the net reduction of the principal of the debt during the fiscal year ended June 30, 1872, was $99, 960, 253 51. The sources of this reduction are as follows: Net ordinary receipts during the year.... Net ordinary expenditures, including interest on the public debt.... Leaving a surplus revenue of... $364, 691,229 91 270, 559, 695 91 Add amount received from premium on sales of gold, in excess of the premium paid on bonds purchased. Add the amount of the reduction of the cash balance⚫ at the close of the year, as compared with same at commencement of year.. 94, 134, 534 00 2,454, 370 89 3,371, 348 65 99, 960, 253 54 This statement treats solely of the principal of the public debt. By the monthly statement of the public debt, which includes the principal, interest due and unpaid, and interest accrued to date not due, and deducts the cash in the Treasury as ascertained on the day of publication, the reduction was $100, 544, 491 28. The source of this reduction is as follows: Reduction in principal account.... Reduction in unpaid-interest account. Reduction in cash on hand.. $99, 960, 003 54 3,330, 952 96 103, 290, 956 50 2,746, 465 22 100, 544, 491 28 A comparison of the reduction in the principal account as shown by the above tables discioses a difference of $250, occasioned by an error, recently discovered, and which is fully explained in a note on page 6 of the appendix to this report. On the basis of the last table the statements show a reduction of the public debt from March 1, 1869, to the present time, as follows: From March 1, i869, to March 1, 1870. March 1, 1870, to March 1, 1871. March 1, 1871, to March 1, 1872... March 1, 1872, to November 1, 1872, (8 months) Total.... And a reduction in the annual interest of $24,187,851. $87, 134, 782 84 117, 619, 630 25 94, 895, 348 94 64, 047, 237 84 363, 696, 999 87 The receipts during the first quarter of the current fiscal year were— From Customs.. Sales of public lands.. Internal revenue. Tax on circulation, &c., of national banks. Repayment of interest by Pacific railways.... Consular, patent, and other fees Net ordinary receipts. $57, 729, 540 27 797, 324 57 34, 169, 047 22 3,307, 238 69 119,093 73 103, 787 30 479,306 03 336, 801 SS 1,346, 257 47 98, 388, 397 16 2,426, 736 91 Total receipts... 100, 815, 134 07 Balance in Treasury June 30, 1872, including $1,014 48 received from “unavailable” 106, 565, 371 42 Total available.. 207, 380, 505 49 The expenditures during the same period were as follows: For civil and miscellaneous expenses, including public buildings, light-houses, and collecting the revenues Indians Pensions .. Military establishment, including fortifications, Total, exclusive of the principal and premium, $18, 299, 891 28 3,037, 343 83 9, 135, 389 71 12, 876, 982 41 7,305, 146 48 36, 196, 894 83 86, 851, 648 54 18, 634, 707 25 Total net expenditures.. Balance in the Treasury September 30, 1872.. 105, 486, 355 79 101, 894, 149 70 207, 380, 505 49 For premium on purchased bonds....$1, 702, 568 53 |