To aid American enterprise in every branch of labor, and, by seasonable couragement, to foster and preserve within ourselves the means of national Bence and independence, led to the protective system in the infancy of the overnment. To counteract the policy and rivalry of foreign nations, and Sprevent their prejudicial influence upon American industry; to indemnify' he latter against the superior skill, and capital, and cheapness, of labor in ader and more experienced countries; and to succor American capital, which he events of the last war had devoted to manufacturing employments, recommended an occasional extension of that policy, which has been liberally enjoyed by the manufacturing classes, since the act of the 4th of July, 1789. In the course of that time, however, the capital and resources of the country have augmented in a ratio beyond the expectations and hopes of the most sanguine. American enterprise and ingenuity are, every where, proverhially the objects of admiration, and in many branches, maintain, without extraordinary aid, a successful competition with those of other nations. By the abundance of provisions in the United States, and the surprising increase population, the wide-spread facilities of water-power, the improvements, well in personal skill as in machinery of all kinds, and the general adacement and diffusion of all the lights of arts and science, and the reducon of duty, both on the raw material and other articles of consumption, the cost of labor and production have not only been lessened, but, in a great measure equalized; and, in this view of the subject, it is not perceived that there can now exist the same necessity for high protecting duties, as that which was consuhed in our past legislation. To perpetuate a system of encouragement, growing out of a different state of things, would be to confer advantages upon the manufacturing, which are not enjoyed by any other branch of labor in the United States, and to convert the favor and bounty of the Government into permanent obligations of right-acquiring strength in proportion to their continuance.

It will be conceded, that, when the fair rate of profit attendant upon the sagacious employment of capital in the United States is satisfactorily ascertained, it may be wise so far to protect any important branch against the inparious effects of foreign rivalry, as may be necessary to preserve for it the same rate of profit as is enjoyed by others. If, however, by protective legislation, or otherwise, the proprietor of an actual capital shall be enabled to employ it in manufactures as advantageously and profitably as in any other branch of labor, all things considered, he could not reasonably demand more. The rate of protection which should enable manufacturing labor, conducted upon borrowed capital, to indemnify the lender, and, in addition, to realize the regular rate of profit for itself, would not merely confer undue favor upon the manufacturer, at the expense of every other employment, but bring the influence of the capitalist in direct conflict with the general mass of the people. It might even be apprehended, that, by such means, there would be an accumulation of power in the hands of particular classes, strong enough to control the Government itself. If these observations are entitled to respect, little doubt is entertained, that, in a tariff framed on proper principles, the reduction of six millions, now recommended, may, for the most part, be made upon those commonly denominated protected articles, without prejudice to the reasonable claims of existing establishments.

By the act of the 14th of July last, the anomaly in the tariff of the United States, by which heavy and burdensome duties were imposed upon the raw material, and especially upon the article of wool, was continued; and the ne

cessity was thereby created, of retaining upon the manufactured art higher degree of protection than would otherwise have been necessary adherence to this anomaly, instead of equalizing the burdens of the p augments that of the consumer, by increasing the number of favored c Proper attention to the facility and cheapness of producing, and the a actually produced, of the raw material in the United States, and an exa tion of the information collected by this department, and transmitted House of Representatives at their last session, will show, that, in the sion of manufactures, and in the augmentation of a sure market, the pro of the raw material has long since been in a condition to dispense w great portion of the protection heretofore afforded. By the same inform it will further appear, that, by relieving the manufacturer from the b of the high duty upon the raw material, the existing duties may be ver terially reduced, and gradually removed, consistently with a just rega the interests which have so long enjoyed the advantages of the prote system.

By these considerations, and the proud and gratifying fact, that ther longer exists any public debt requiring the present amount of revenue the ensuing year, the question is submitted to the Legislature, whether will continue to raise from the people of the U. States, six millions of do annually beyond any demand for the public service, that favors, which been so long enjoyed, and which may soon be dispensed with, without ment to the national safety or independence, may be indefinitely contin The undersigned is duly sensible, that the decision of this question bel properly to Congress. The duty, however, enjoined on him by the law. digest and prepare plans for the improvement and management of the venue, and for the support of public credit, not less than the deep solici: he feels for the safety of our common country, have urged him to pre it, with his own reflections, for the consideration of the Legislature.

In the decision of this question, the present crisis in the United Sta pregnant with the deepest interest, must have its weight;-an interest: ing not so much from an apprehension of weakness in the laws, or of inabi to execute them, as from a universal conviction, throughout a large port of the Union, of the necessity of a change, and of the propriety of payin reasonable deference to that opinion. The harmony and brotherly affect of the citizens of different parts of this great republic,-if not the preservat of the Union itself,-appeal to the patriot and statesman for the exercise their highest qualities, in regulating the burdens of the people consister with the equal rights of all, and in rendering the laws not less free and ec than the institutions under which they are enacted. The occasion invo the spirit of liberal concession and compromise, which laid the foundati of our inestimable Union; and, on such an occasion, patriotism requires no one interest should exact more than may be consistent with the well of the whole.

Such an appeal comes with force to all, but, in an especial manner, be made to those who have so long reaped the advantages of those burde from which their brethren throughout the Union, after having submitted them while the public obligations and the national defence and independe required it, now ask to be relieved.

If this appeal do not find a response in a wise and patriotic moderati there will be no efficacy in the moral force on which the republican insti tions of the Union repose,

The sleepless solicitude of the father of his country has multiplied lessons patriotic duty, but none of greater emphasis and pertinence in the prebent crisis, than in his admonition that, "it is indispensable, on all occasons, to unite with a steady and firm adherence to constitutional acts of government, the fullest evidence of a disposition, as far as may be practicable, to consult the wishes of every part of the community, and to lay the foundations of the public administration in the affections of the people."

The operation of the eighteenth section of the act of the 14th of July last, according to the construction given to it at the Treasury, being, in some respects, different from that which the merchants concerned consider important to their interests, it is deemed proper to bring the subject before the attention of Congress, that, if owing to any defect in the law, or any error in the construction, the intentions of the Legislature have not been carried into effect, the necessary remedy may be applied.

By that section, the several articles enumerated in the act, whether impurted before or after the passing thereof, were authorized to be put into the toto house stores, and such as remained under the control of the proper ter of the customs on the 3d of March next, were subjected to no higher ties than if imported after that day; and the duties, or any part thereof, which may have been paid on such articles, were to be refunded to the person importing and depositing the same; and the Secretary of the Treasury was shorized to prescribe such rules and regulations as might be necessary to carry the section into effect.

Is executing the section the fullest disposition was felt to consult the interest and convenience of the merchants; but it was perceived that an unlimited construction of its terms was calculated not merely to conflict with the several members of the same section, and with other sections of the act, but to disturb the financial arrangements of the Government, and postpone the payment of the public debt.

In the last annual report from this department, as well as in that prepared by direction of the House of Representatives, and accompanying the aill which formed the chief basis of the act of the 14th of July, it was stated, that the existing obligations of the Government, not less than the interests of the community, forbade a reduction of the present duties earlier than the 3d of March, 1833; and by the second section of the act this recommendation was distinctly recognized and adopted.

Without some limitation, therefore, as to the retrospective operation of the 18th section, the object of the second section would not only have been defeated, but the act itself would in fact have been rendered operative in all past time, so far as concerned any goods in the original packages, no matter when imported; and the owners, whether importers or retailers, in all parts of the country, would have had a right to deposite them in the customhouse stores, and claim a refunding of the duties.

By one of the provisions of the 18th section, the authority to refund the Cuties which had been paid on articles deposited, is expressly confined to the persons importing and depositing the same;" thus treating the imparter and depositor as identical. And, as it is not reasonable to suppose that the right to deposit was greater than that to claim a refunding of the duties, the words importer or owner" in other parts of the section were treated as synonimous. The terms "importer or owner," moreover, throughut the revenue laws, refer to importation, and are intended to signify the person importing, whether the actual proprietor, the agent, or the consignee.

It is obvious, also, that, by this construction, these terms not only their usual revenue meaning, but are reconciled with those of impor depositor, which could not be, if the conjunction were to receive tive interpretation. It was, therefore, held, that goods could be ne only by the importer.

As the act contained no appropriation for drawing money out of t sury for repaying the duties authorized to be refunded, the departm fully warranted in interpreting the 18th section as applying to thos only which may have been paid to the collector after the passing of and consequently, in limiting the right of deposite to the goods on those duties accrued. But, from a desire to give the section as li construction as was consistent with all the other objects of the act, allowed to apply to the whole of any importation on which any part duties remained unpaid at the date of the law. And, to make this con tion operate as equally and favorably among the importers gener.: might be, it was allowed to include those goods also, upon which the d had been paid in cash, provided that, by the terms of credit allowed by such duties, or any part of them, would not have been payable antil the date of the law. It is not believed, however, that any constructi the section, which will not admit of the deposite of goods when in ori packages, whether in the hands of the importer or of any other person no matter when imported, will be satisfactory to the owners of such as may be imported at a lower rate of duty after the 3d of March But, it it be the intention of Congress so to extend the operation of the tion, it is respectfully suggested, that as it will, in that case, necessaril brace goods upon which the duties must have been accounted for and over to the treasury, an appropriation be made for repaying the amou such duties out of the treasury.

With a view to obtain reasonable certainty in the financial operation the Government, and at the suggestion of the collectors as to the time cessary for the duties to be performed by them, in executing the 18th tion, a regulation was adopted fixing the time to which goods might be posited, on the 1st of January next. It is, however, the intention of department to extend the time, if it be found that the duties of the co tors will admit of it.

The alteration in many of the rates of duty, and the repeal of the ot which have been effected by late acts of Congress, seem to require some responding modifications of the provisions heretofore made for ascertai and securing the duties. But, as these details might be better brough the attention of Congress in a separate communication, if such be its sure, that course will be adopted.

In the exposition of the public debt, presented in this report, it has b assumed that the three per cents. advertised for reimbursement on the Is October last have been actually paid, because the treasury has provided. ple funds at the different loan offices for that purpose, which, upon the sentation of the certificates, should have been applied to their paymen'. has recently been understood, however, that on the 18th of July last, Bank of the United States, on the ground, as stated in the letter of instr tions, that the spread of the Cholera might occasion great embarra ment and distress in the community, deemed it expedient for the bank keep itself in an attitude to afford relief, should its interposition be nec sary, and also to mitigate the pressure which the reimbursement of the th

nt stock held by foreigners might produce in October," despatched an to London, to make an arrangement with the House of Baring, bers, & Co. for the postponement of three millions, for which they the agents of that house, and also for two millions in addition.

had not, at that time, been decided by the Government at what period whole of the three per cents. should be paid; and the agent of the bank authorized to make an arrangement for a postponement for six, nine, or Ive months after that period-the bank agreeing to pay the interest in meantime.

Under this general authority, the agent concluded, on the 22d of August, 2, a contract with Messrs. Baring, Brothers, & Co. to buy up the three ceat, stocks on the best terms at which they can be obtained, both in on and Holland; the cost thereof to be placed to the debit of the bank, the certificates of the stock so purchased to remain with Messrs. BarBrothers, & Co. It was also stipulated, that, if the amount of stock so sed, and of that retained by the holders, should, together, be less five millions of dollars, Messrs. Baring, Brothers, & Co. should make "e deficiency in case the Bank should find it desirable to draw for it, or part of it-the whole advance to be reimbursed by the bank in Octo1833. Pursuant to this contract, purchases of the three per cent. ky were actually made on account of the bank to the amount of 474,827,33.

It is also understood that the bank, by a letter from the president to 7. Baring, Brothers & Co., dated the 15th of October, 1832, disavowmuch of the arrangement made by its agent, as related to the purchase the stock, on the ground of that provision in the charter, which declares "the bank shall not be at liberty to purchase any public debt whatever." e of the stipulation in the contract, in regard to the amount purchased, as, in the same letter, proposed, that the certificates should be transmitwithout delay, that the bank might receive payment for the owners, thout which, it would not be in actual possession of the funds; and the stock being thus reimbursed to the stockholders, the amount should passed to their credit on the books of the bank, and they continue to reeive an interest of three per cent., payable quarterly, until the 1st of Octo

ber, 1833.

It is supposed to be optional with Messrs. Baring, Brothers & Co. and With the stockholders who have stipulated for a postponement of payment, consent to the change proposed by the letter of the president of the bank, of the 15th of October, or to insist upon the performance of the original arrangement; and, should they pursue the latter course, the certificates cannot be finally surrendered before October, 1833. However this may be, and, notwithstanding the bank has disavowed the authority of the agent to purchase, it is certain that a delay, for a considerable period of time, has been, and must yet be, occasioned, in the surrender of the certificates of stock, to a arge amount; and, it is not perceived, that there is any sufficient justification, in the grounds of the transaction as assumed by the bank, for an arrangement any form, by which so large an amount of the public funds should be retuned by the bank, at the risk of the Government, after it had directed their application to the payment of the public creditor.

It is apparent, however, that the apprehensions arising out of the arrangement, as it is understood to have been concluded by the agent of the bank, and of the consequences to which it might lead, more especially should the