taken theory of economy will
perpetuate a system which in the past has virtually closed to deserving
talent many offices where capacity and attainments of a high order are
indispensable, and in not a few instances has brought discredit on our
national character and entailed embarrassment and even suffering on
those deputed to uphold our dignity and interests abroad.

In connection with this subject I earnestly reiterate the practical
necessity of supplying some mode of trustworthy inspection and report of
the manner in which the consulates are conducted. In the absence of such
reliable information efficiency can scarcely be rewarded or its opposite
corrected.

Increasing competition in trade has directed attention to the value of
the consular reports printed by the Department of State, and the efforts
of the Government to extend the practical usefulness of these reports
have created a wider demand for them at home and a spirit of emulation
abroad. Constituting a record of the changes occurring in trade and of
the progress of the arts and invention in foreign countries, they are
much sought for by all interested in the subjects which they embrace.

The report of the Secretary of the Treasury exhibits in detail the
condition of the public finances and of the several branches of the
Government related to his Department. I especially direct the attention
of the Congress to the recommendations contained in this and the last
preceding report of the Secretary touching the simplification and
amendment of the laws relating to the collection of our revenues, and in
the interest of economy and justice to the Government I hope they may be
adopted by appropriate legislation.

The ordinary receipts of the Government for the fiscal year ended June
30, 1886, were $336,439,727.06. Of this amount $192,905,023.41 was
received from customs and $116,805,936.48 from internal revenue. The
total receipts, as here stated, were $13,749,020.68 greater than for the
previous year, but the increase from customs was $11,434,084.10 and from
internal revenue $4,407,210.94, making a gain in these items for the
last year of $15,841,295.04, a falling off in other resources reducing
the total increase to the smaller amount mentioned.

The expense at the different custom-houses of collecting this increased
customs revenue was less than the expense attending the collection of
such revenue for the preceding year by $490,608, and the increased
receipts of