iscal year was $24,121,289, of which there was retained in the
country $22,276,170. Had the former financial system prevailed and the
public moneys been placed on deposit in the banks, nearly the whole of
this amount would have gone into their vaults, not to be thrown into
circulation by them, but to be withheld from the hands of the people as
a currency and made the basis of new and enormous issues of bank paper.
A large proportion of the specie imported has been paid into the
Treasury for public dues, and after having been to a great extent
recoined at the Mint has been paid out to the public creditors and gone
into circulation as a currency among the people. The amount of gold and
silver coin now in circulation in the country is larger than at any
former period.

The financial system established by the constitutional treasury has been
thus far eminently successful in its operations, and I recommend an
adherence to all its essential provisions, and especially to that vital
provision which wholly separates the Government from all connection with
banks and excludes bank paper from all revenue receipts.

In some of its details, not involving its general principles, the system
is defective and will require modification. These defects and such
amendments as are deemed important were set forth in the last annual
report of the Secretary of the Treasury. These amendments are again
recommended to the early and favorable consideration of Congress.

During the past year the coinage at the Mint and its branches has
exceeded $20,000,000. This has consisted chiefly in converting the coins
of foreign countries into American coin.

The largest amount of foreign coin imported has been received at New
York, and if a branch mint were established at that city all the foreign
coin received at that port could at once be converted into our own coin
without the expense, risk, and delay of transporting it to the Mint for
that purpose, and the amount recoined would be much larger.

Experience has proved that foreign coin, and especially foreign gold
coin, will not circulate extensively as a currency among the people. The
important measure of extending our specie circulation, both of gold and
silver, and of diffusing it among the people can only be effected by
converting such foreign coin into American coin. I repeat the
recommendation contained in my last annual message for the establishment
of a branch of the Mint of the United States at