beneficial to our manufactures by
diminishing forced sales at auction of foreign goods at low prices to
raise the duties to be advanced on them, and by checking fluctuations in
the market. The system, although sanctioned by the experience of other
countries, was entirely new in the United States, and is susceptible of
improvement in some of its provisions. The Secretary of the Treasury,
upon whom was devolved large discretionary powers in carrying this
measure into effect, has collected and is now collating the practical
results of the system in other countries where it has long been
established, and will report at an early period of your session such
further regulations suggested by the investigation as may render it
still more effective and beneficial.

By the act to "provide for the better organization of the Treasury and
for the collection, safe-keeping, and disbursement of the public
revenue" all banks were discontinued as fiscal agents of the Government,
and the paper currency issued by them was no longer permitted to be
received in payment of public dues. The constitutional treasury created
by this act went into operation on the 1st of January last. Under the
system established by it the public moneys have been collected, safely
kept, and disbursed by the direct agency of officers of the Government
in gold and silver, and transfers of large amounts have been made from
points of collection to points of disbursement without loss to the
Treasury or injury or inconvenience to the trade of the country.

While the fiscal operations of the Government have been conducted with
regularity and ease under this system, it has had a salutary effect in
checking and preventing an undue inflation of the paper currency issued
by the banks which exist under State charters. Requiring, as it does,
all dues to the Government to be paid in gold and silver, its effect is
to restrain excessive issues of bank paper by the banks disproportioned
to the specie in their vaults, for the reason that they are at all times
liable to be called on by the holders of their notes for their
redemption in order to obtain specie for the payment of duties and other
public dues. The banks, therefore, must keep their business within
prudent limits, and be always in a condition to meet such calls, or run
the hazard of being compelled to suspend specie payments and be thereby
discredited. The amount of specie imported into the United States during
the last f