althful and invigorating influence the federal system can never
fall.

In the collection of the revenue the long credits authorized on goods
imported from beyond the Cape of Good Hope are the chief cause of the
losses at present sustained. If these were shortened to six, nine, and
twelve months, and warehouses provided by Government sufficient to
receive the goods offered in deposit for security and for debenture, and
if the right of the United States to a priority of payment out of the
estates of its insolvent debtors were more effectually secured, this
evil would in a great measure be obviated. An authority to construct
such houses is therefore, with the proposed alteration of the credits,
recommended to your attention.

It is worthy of notice that the laws for the collection and security of
the revenue arising from imposts were chiefly framed when the rates of
duties on imported goods presented much less temptation for illicit
trade than at present exists. There is reason to believe that these laws
are in some respects quite insufficient for the proper security of the
revenue and the protection of the interests of those who are disposed to
observe them. The injurious and demoralizing tendency of a successful
system of smuggling is so obvious as not to require comment, and can not
be too carefully guarded against. I therefore suggest to Congress the
propriety of adopting efficient measures to prevent this evil, avoiding,
however, as much as possible, every unnecessary infringement of
individual liberty and embarrassment of fair and lawful business.

On an examination of the records of the Treasury I have been forcibly
struck with the large amount of public money which appears to be
outstanding. Of the sum thus due from individuals to the Government a
considerable portion is undoubtedly desperate, and in many instances has
probably been rendered so by remissness in the agents charged with its
collection. By proper exertions a great part, however, may yet be
recovered; and whatever may be the portions respectively belonging to
these two classes, it behooves the Government to ascertain the real
state of the fact. This can be done only by the prompt adoption of
judicious measures for the collection of such as may be made available.
It is believed that a very large amount has been lost through the
inadequacy of the means provided for the collection of debts due to the
public, and that this inadequacy lies chiefly in the