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Annual Treasury Report.

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tion; in the allowances to persons instructed to investi-existing revenue laws, as well for the convenience of gate transactions of Custom Houses and Land Offices; to those employed in commerce and navigation, as for the assistant counsel, and for costs in suits and prosecutions; better security of the revenue. and for various services of less magnitude. The payments for these objects are usually made by Collectors and Receivers of Public Moneys, or by drafts on them from the Treasury Department; being considered as incidental to these branches of revenue. It is desirable that all such payments should be as specifically sanctioned by law as those made out of moneys in the Trea

sury.

The Secretary of the Treasury deems it proper to make known to Congress, that the duties imposed upon woollen goods, under the act of the 19th May, 1828, have, in pursuance of an instruction from the Treasury Department, dated the 15th of October, 1828, been charged upon the value of such goods, without the addition of 20 per centum on the cost of those imported from the Cape of Good Hope, or any place beyond the same, or from beyond Cape Horn, or 10 per centum on those from any other place or country.

The law, it is believed, may admit of a different constrnction; but, as the orders for the importations, since the instruction above referred to, were given with a knowledge of its operation, now to add the 20 or the 10 per cent, to the cost of such goods, would probably transfer the whole of them into a class higher than was fairly contemplated by the importer, and increase the duty very prejudicially to his interest. Under these circumstances, and as there may be some doubt as to the intention of the law, it has been deemed proper not to disturb the existing construction, but to submit the matter to the consideration of Congress.

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The law in relation to licenses for coasting and fishing vessels, operates unequally and injuriously upon some branches of that business; it requires, upon every change of structure of the vessel, or of ownership, by the transfer of the right of one partner, the taking out of a new license, and the payment of a new duty.

The bounty allowed on vessels employed in the cod fisheries is understood to be unlawfully obtained by some of those engaged in the mackerel fisheries. It is believed that a bounty on the fish cured or exported, without reference to the origin of the salt, would better promote whatever encouragement may be considered as proper to be given to the fisheries; this could be graduated to any scale, and, being more simple in its form, would be less liable to abuse.

It is found that the present mode of compensating Custom House officers operates unequally, and not in proportion to the service rendered. As striking instances of this inequality, Inspectors, in many places, receive more than double the compensation of the Collectors who employ them; and, at some ports, Custom Houses are built, or purchased by the Government, while at others, they are provided at the expense of Collectors.

The fees of office are liable to be variously computed, and are a constant source of embarrassment in the transaction of business. These, it is believed, may be generally abolished, and the mode of compensation by salary beneficially substituted; retaining, however, those on manifests, clearances, entries, and permits, and that class of service which makes it the interest of the officers to require a strict observance of those acts on the part of masters of vessels, and shippers, which may be deemed essential to the security of the revenue.

The commissione now allowed to Collectors on bonds put in suit might be advantageously divided between them and the District Attorneys. The former would thereby be more interested in taking proper security, and the latter have a salutary stimulus to the discharge of their duties.

Some additional provision of law is deemed necessary to compel the surrender of public books and papers of District Attorneys, Marshals, Custom-house and Land officers, in pursuance of orders from the proper department.

Another subject somewhat singular in character, has been, for special reasons, differently disposed of. A deduction of five per cent. on the invoices of broadcloths, for measurement, has become an established usage of trade. This usage was particularly noticed in an instruction issued by the Treasury Department, on the 9th September, 1828, but which had been differently construed by the Custom-house Officers at different ports: at some, the deduction having been made from the measurement, and at others from the cost; by which different rates of duties were imposed. It was deemed not only a legal, but constitutional obligation, so far as the powers vested in the Department would admit, to render the duty uniform throughout the United States. In preparing the necessary The labors of the appraisers of imported goods have regulations for this purpose, it was considered that the five been greatly increased by the "act in alteration of the per cent. deduction was originally intended, as it purports several acts imposing duties on imports," passed 19th to be, on "measurement," and not on price. This basis May, 1828. To give the proper efficiency to that branch was also recommended by another and more important of service, it is necessary to have warehouses and officonsideration, viz: the uniformity of its effect. The allow-ces, conveniently adapted for the examination, measurance being made for measurement, the merchant pays duty ing, and repacking of goods; and that the persons emon the number of yards purporting to be imported; but, if made on price, it is nugatory, except the cloths are thereby transferred from a higher to a lower class, in which case it diminishes the duty by the amount of the difference between the duties charged on such classes. An instruction was accordingly issued on the 8th of August, 1829, directing the allowance of the five per cent. to be made on the measurement only. But this unavoidably deprived a number of importers, whose orders had been previously given, of the expected benefit of the deduction, in determining the classes of dutiable prices to which their cloths belonged; such cloths are consequently subjected to a rate of duty higher than was contemplated when the orders were given. The regulation has, therefore, injuriously affected the interest of these importers, and their case is submitted to the favorable consideration of Congress, who alone can give the proper

relief.

The Secretary of the Treasury respectfully invites the attention of Congress to some modification of the

ployed by appraisers should be more immediately under their control. In the port of New York, where nearly half the importations into the United States are made, the whole labor of appraising devolves on two officers, who are exclusively responsible for that duty; and yet, all the assistance which can be provided for them is supplied indirectly, and under an implied power. To avoid the embarrassment that must arise from sickness, or other necessary absence of one or both of these officers, an additional appraiser at that port seems indispensable. It is also deemed advisable that the commissioned appraisers at all the ports should be authorized, under proper restric tions, to employ persons to act as assistants, under regu lar official responsibility; these being distributed upon the different classes of business, could not fail to increase the power of the appraisers for an efficient and faithful performance of their duties, and without any material increase of expense.

The present system of storing goods for debenture, or in security for duties, may, it is believed, be beneficially

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modified. Goods are now stored under various circum- | Wine, Spirits, and Teas, and goods entitled to drawback. stances.

1st. Teas may, at the option of the importer, and at his expense, be stored under the direction of the Custom-house officers, in security for the duties, for two years.

2d. Wine and spirits may be stored, in like manner, for one year.

3d. All other goods may be stored, in like manner, for the term of credit on the duties respectively.

It is apparent, from these facts, that very great facilities are given for illicit trade. If a single port can be found, where, through the negligence of the officers of the customs, or other cause, goods can be thus introduced, there is no sufficient obstacle to their being transported by water, to another and a better market. The mere power to board a coasting vessel, and demand her manifest, without any obligation on the master, to report her to the Collector, is wholly insufficient for proper security against frauds, and especially in those ports where an extensive

4th. Wines and Spirits, to be entitled to drawback, must be deposited in a public store, and there remain, from their landing, until shipment: or, on being trans-coasting and foreign navigation is carried on. ported coastwise, may be again stored or shipped.

5th. Goods, irregularly imported, are stored until they can be disposed according to law.

There is also a feature in the law, in relation to the seizure of goods suspected to have been smuggled, which, it is believed, may be beneficially modified. These Private stores are usually rented for these purposes by goods are usually seized in small quantities; the owners, the Collectors; but the facility of access to such buildings perhaps, escape, or no one appears to claim them, renders the security of little avail: and that abuses have and yet the goods cannot be sold until libelled, and connot more frequently occurred, is attributable much more demned in a court of the United States; the costs attendto the integrity of the merchants than the efficacy of the ing which, frequently amount to more than the proceeds system. The remedy proposed, is to erect warehouses, of the articles, when sold. The officer not only loses his at the public expense, at the principal ports, for all the reward, but the United States are subjected to costs, and permanent objects connected with this branch of service; what was intended as an inducement to vigilance, beto be so situated and constructed as to be conveniently comes worse than nugatory. This might be remedied by guarded, and rendered inaccessible except by permission authorizing the sale, without condemnation, of such goods of officers in charge. This being done, the warehouse as may be unclaimed, after a reasonable notice. An addisystem may be extended to all goods entered for draw- tional and salutary stimulus may also be given to the actiback, and the right of debenture continued as long as they vity of Revenue Officers by authorizing a relinquishment remain in store. There can be no doubt that a moderate to them, of a portion of the proceeds of forfeited goods, charge for storage would remunerate the Government for which may accrue to the Government. The sum thus the expenditure, while the revenue would be rendered relinquished would probably be much more than repaid, more secure, and the interests of navigation essentially in the increased security of the revenue, arising from the promoted. iucitement to greater vigilance.

The intercourse between the United States and adjacent foreign territories requires some special regulation, as well for the convenience of the officers of the customs as of travellers, and also for the better security of the revenue. Persons transiently coming into the United States on business, and returning, are obliged to pay duty for the horses and vehicles employed, without benefit of drawback. Ferry-boats, having foreign goods on board, are required by law to enter and pay fees upon every trip across a boundary water. It is also desirable that United States' vessels, of whatever burden, laden with foreign goods, passing on those waters, should be subject to the same regulations that are now imposed on coasting vessels, passing from one district to another, not in an adjoining State. It may, however, be doubted, whether any regulation short of a total prohibition of the importation of goods, not the growth or product of the Territories contiguous to the United States, and of their transportation upon the boundary waters in vessels of the United States, without accompanying evidence of the duties having been paid, will effectually prevent illicit importations from those countries.

The power to search for, and seize goods found on land, requires to be enlarged, and better defined. To avoid unnecessary vexation, the exercise of the power might be limited to a reasonable distance from the coast, navigable rivers, canals, or the interior border. It is known that considerable exertions are making for introducing goods into the United States, in violation of the revenue laws: and the Secretary of the Treasury finds himself compelled to invite the special attention of Congress, to the adoption of such measures, as may be calculated to prevent an evil, not less dangerous to the morals of those exposed to the temptation, than injurious to the interests of the Nation. Every measure intended for this object will unavoidably subject the fair trader to some inconvenience; but this should be considered more than counterbalanced, by the protection it affords against the ruinous competition of those, who can only be restrained by efficient laws, rigorously executed.

The present credit system, it is believed, may be materially improved. If the purchaser of goods, or any other person than the importer, could be lawfully substituted, as the principal on Custom house bonds, in all cases where The laws in relation to the coasting trade do not afford the importer was not indebted on bonds due and unpaid, the necessary means for preventing the unlawful intro- the security of these debts might be greatly increased. duction of foreign goods through that channel. The It would, in such case, depend on the solvency of a class United States are divided into three great districts: 1st, of merchants exposed to less hazard in their business, beFrom their eastern limits to the southern limits of Geor-sides being divided among a greater number. The cregia. 2d, From the southern limits of Georgia to the dits now allowed are also unnecessarily complicated. Perdido River. 3d, From the Perdido River to the The long credits on teas have been a source of heavy loss western limits of the United States. Masters of vessels, to the revenue, and consequently injurious to the interlicensed for carrying on the coasting trade, may now ests they were intended to promote. Experience has with a given amount of cargo, pass from one port to ano-proved, that, by furnishing an opportunity for, they stimther, within either of these districts, or to a port in an ulate adventurous speculation, not less ruinous to those adjoining State, without delivering a manifest or obtain- connected with them, than prejudicial to the Government. ing a permit previous to their departure, and without The terms of payment for duties, now presented by law, making any report on entering their vessel at the port of are as follows: destination; nor does the law require any evidence, except the oath of the master in certain cases, of duties having been paid on foreign goods transported from one port to another, except by a defective provision as to

All sums not exceeding fifty dollars, are payable in cash; all sums exceeding fifty dollars, for duties on the produce of the West Indies, (except salt,) or places north of the equator, and situate on the eastern shores of America, or

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its adjacent seas, bays, and gulfs, one half in 6 months, one and interrupt and disturb that gradual growth which best half in 9 months:

On salt, 9 months:

On wines 12 months:

On all goods imported from Europe, (other than wines, salt, and teas,) one third in 8 months, one third in 10 months, and one third in 12 months:

On all goods, (other than wines, salt, and teas,) imported from any other place than Europe and the West Indies, one third in 8 months, one third in 10 months, and one third in 18 months:

On teas imported from China or Europe, stored as security for duties, a credit of two years is allowed. When delivered for consumption, the duties, not exceeding one hundred dollars, on a credit of four months with security; if over one hundred dollars, and not exceeding five hundred dollars, eight months; over five hundred dollars, twelve months; the credit not in any case to extend beyond the two years allowed on deposite of the

teas.

On wines and spirits, stored as security for duties, the same credit, on delivery, as if not stored: not to exceed twelve months.

The term of six, nine, and twelve months, might be adopted as a fair average of existing credits. A change, if introduced prospectively, could not be sensibly felt in the price of any article of importation; and the reduction of the duties on teas, and some other importations from countries south of the equator, if that be thought advisable, would contract the effect of a shortened credit upon the interests of navigation in that region.

promotes and secures substantial prosperity. So injurious are great and sudden fluctuations in human employments, that it has been even doubted whether the inventive genius of man, in the development of means for saving labor, and multiplying mechanical power, has not proved rather an evil than a benefit. A close observance of this operation will, however, demonstrate that, whatever there may be of evil in it, arises only from the suddenness of the change. Employments essential to the support of many, have been superseded so suddenly as to leave them dependent on the charities of those who may have profited by the event; this would not have oecurred had the process been graduated as to time, more conformably to the habits and conditions of those liable to be affected by it. The employments thus superseded, will, however, scarcely be known to, or needed by, the next generation; others will take their place, and those who cannot enter upon new pursuits, though without hope for themselves, may yet be consoled with a better prospect for posterity.

It may not be unprofitable to observe, that a total revolution is taking place in many of the productive employments throughout the civilized world. The improvements in science and arts, no longer interrupted by war, have been directed to other objects, and have so increased the power of production that the tide of prices, which had been long on the flood, is gradually ebbing, even under a depreciated currency. The relative values between labor and products have also changed, but are not yet adjusted. The depression of prices, falling unequally on the different The average proposed somewhat increases the length species of property, is ruinous to many, and repugnant to of the credits on importations from the West Indies. the feelings even of those who do not really suffer. It Upon this point it may be observed, that the profits of may be long before a proper adjustment of these values the West India trade, being reduced to their minimum, removes the evil; and until then, the busy world will be every proper facility given to it, could not but be felt in the agitated by the convulsive struggles of its various inteagriculture, as well as the commerce and navigation of the rests, each to avert from itself, and throw upon others the United States; those colonies being almost the only mar-impending adversity. The ramifications of these connectket for many of the staple products of several of the ing and conflicting operations are so complicated, that it States. The same object may be further promoted, by may be doubted whether any degree of intelligence, howthe reduction of duties on coffee, spices, and some other ever free from the influence of special interests, could, by products of these Islands. the exercise of its political power, materially lessen the evil. The active energies of man, stimulated by necessity, emulation, and love of wealth, are perhaps the agents most to be relied upon, in maintaining a salutary equilibrium in the various operations of human enterprise. Every new disposition, therefore, of the money power, to be safe, should be gradual, and requires great caution to avoid increasing the unequal and irregular action which is so obviously prejudicial, both to individual and public welfare.

It is also worthy of consideration, whether any modification of the revenue system, with a view to improve the West India trade, might not, with advantage, be arranged in such manner, as to give a preference to the productions of those colonies into which American navigation is per

mitted.

Whatever objects may, in the wisdom of the Government, be found for the application of surplus revenue, after the public debt shall be paid, there will probably remain a considerable amount, which may be dispensed with, by a reduction of the import duties, without prejudice to any branch of domestic industry. Such a reduction will present a favorable opportunity for averting a portion of the evil resulting from the general depression in the price of property before referred to. The repeal of a tax is similar in its effects to the relinquishment of so much annual debt; relieving, to that amount, the various species of labor upon which it was charged, and distributing its benefits, in proportion to consumption, upon every individual of the nation.

The effects of a change in the credit system, and of a reduction of duties, upon the various interests of the nation, other than revenue, are suggested as incidental considerations, which, though they might not be deemed of such a character as to justify a revision of the revenue laws, yet cannot safely be overlooked in a modification called for by other indispensable objects. It may be proper, however, in all measures of this nature, to keep in view, that the money power of the Government, whether exerted in the imposition, distribution, or reduction of taxes, or in the disbursement of the public treasure, requires to be exercised with the most guarded and steady purpose of uniting absolute and relative justice in the same point. Whatever propels an undue portion of capital into one pursuit, must tend, where capital is abundant, sooner or later to overcharge it, and lessen the profits. The same operation will cause at least a relative increase in the profits of other pursuits from which capi- The extinguishment of the public debt tends to the tal has been withdrawn. The application of the money same result in another way. The interest is now paid to power of the Government to regulate the unequal action capitalists, out of the profits of labor; not only will this caused by such, or any other changes in human economy, labor be released from the burden, but the capital thus is, in its nature, incapable of precise and certain adapta- thrown out of an unproductive, will seek a productive tion to its end; hence, the necessity for care and modera- employment; giving thereby a new impetus to entertion in all measures of this character. Every mistake prise, in agriculture, the arts, commerce, and navigation, must increase the irregularities intended to be remedied, at a lower charge for interest than before. The heavy

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lity to small and exact payments, will prevent the abuse of burthening creditors, with an inconvenient amount of these coins. When our copper coins shall be thus confined to very small payments, the objection often made, that they are too heavy for the purpose of money, will have little force.

All our silver coins are now, indiscriminately, legal money for all payments; and any debt, however large, may be discharged in the small coins of this metal.

impositions on the labor employed in these pursuits, in those nations where the arts have attained their highest perfection, had become in a great measure counterballanced, in latter years, by the increased capacity of that labor; but these burthens still remain, and with but little prospect of diminution. In the mean time, the industry of the United States will have a positive advantage over that of other countries, equal to the difference between their respective rates of taxation; and it is worthy of consideration, that there has been probably no period, in The design of a system which employs gold, silver, which such an opportunity for advancing the general and copper as money, is, that the several metals should economy of the American People, and aiding them to be used for the respective offices to which each of them maintain a successful competition with that of other coun-is peculiarly adapted; that gold should be used chiefly for tries, could have been more propitious, or more necessary to their interests, than that which is now approaching. It is known that the most unexampled exertions are making in all civilized nations, to increase the productive power; and those who shall stand foremost in this laudable strife, will be assured of success in maintaining, not merely the prosperity of their People, but a high rank among the family of nations.

All which is respectfully submitted.

S. D. INGHAM, Secretary of the Treasury. TREASURY DEPARTMENT, Dec. 14, 1829.

REPORT ON THE CURRENT COINS, Made to the Senate of the United States, Jan. 11, 1830. Mr. SANFORD, from the Select Committee appointed to consider the state of the current coins, and to report such amendments of the existing laws concerning coins, as may be deemed expedient, made the following Report:

large payments; that payments which are neither very great nor very small, should be made in silver; and that copper should serve only for payment of very small sums. The object of different coins of the same metal is, that the smaller coins should be used to pay the small sums which they express.

All these are objects of real and great convenience. But when small coins, so convenient for small and exact payments, are used to discharge large debts, their ineonvenience is manifest. All the coins offered in payment, must be counted; every piece must be examined, at least, by inspection; and the labor of effecting a payment is nearly in proportion to the number of pieces used for that purpose. To abridge this labor, large coins are necessary; and public convenience requires, that such coins should be used in payment of large sums.

ends; but we have hitherto made no discrimination beOur various coins are well adapted to these different tween our different coins, in respect to their use in pay.

ments.

We have four silver coins less than a dollar; and we allow to the debtor the option to pay either gold or silver coins. It is not expedient that he should also have the option to pay, a large debt in these small coins of silver.

The law of the second day of April, 1792, establishing the Mint, and directing coins of gold, silver and copper, expressly enacts, that the gold and silver coins shall be Where all the coins are equally applicable to all paya legal tender, in all payments; but it is not declared ments, the community seldom enjoy, to a convenient exby that law, or by any express enactment, that our copper tent, the use of the larger coins. Large coins are withcoins shall be legal money. The currency of all other drawn from circulation sooner, and more frequently, than copper coins is expressly prohibited by the law of the 8th smaller pieces. The coins most convenient to the manuday of May, 1792. It is, and from the first institution of facturer, to the merchant, who exports coins, and to all our coins has been, an uncertain question, whether a debtor who deal in the precious metals as merchandize, are the ean compel his creditor to receive payment in cents or pieces which contain the greatest quantity of metal. All half cents. A discussion of this question, as it now these persons select large coins for their purposes, in stands upon the existing laws, is here unnecessary. Our preference to small pieces; and where the same quancopper coins are either legal money, or they are not. If tity of metal may be obtained either in large pieces or they are a legal tender, they are so without limitation of small coins, the greater convenience of large pieces for amount; and any debt, however great, may be discharged in cents and half cents. If they are not a legal tender, they are not so in any case, or for the smallest sum; and we have no legal money for very small payments. Both branches of this alternative are unfit; and neither of them should be law. The coins of copper are altogether unsuitable for payment of large sums; they are not necessary for payments which may be made by coins of silver or gold; and their peculiar destination is, to make those small payments which cannot be made by coins of higher value. The copper coins should, therefore, be confined to their proper province; and within that sphere they should be legal for all purposes of money.

the uses to which coins are applied by these persons, is, alone, a decisive reason for this preference. Another cause concurring with this convenience, operates, powerfully, to withdraw large coins from currency. Circulating coins are never entirely uniform in weight. Small coins lose a greater proportion of weight than large coins, by circulation; and where the different coins have been in use during the same period, large coins are less diminished in weight and intrinsic value. The merchant or the manufacturer who selects large pieces instead of small coins, not only finds the large pieces more convenient, but he generally finds, also, a considerable gain in the quantity of metal which he obtains by this preference. This disproportion is, moreover, a direct induceIt is proposed that the amount for which the copper ment to convert large coins into bullion. As the diminucoins shall be a legal tender shall be ten cents. A sum tion of small coins is often much greater than that of large greater than ten cents would be inconvenient and coins, the larger pieces are converted into bullion, for the though five cents may be paid in silver by a half dime, gain which this operation affords: these conversions are and ten cents by a dime, or two half dimes, yet it is con- extensive, in proportion as they are profitable; and are venient that the debtor should also be able to pay these profitable, according to the degree of disproportion of small sums in the copper coins. The sum of ten cents, weight between large coins and small pieces. Motives as a rule for this purpose, seems to adjust, reasonably, of convenience, and motives of profit, thus co-operate to the question of convenience between creditor and debt- the same result; and demands for gold or silver, which or and this regulation, while it will afford entire faci-fall upon the coins, are satisfied from the largest pieces

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which can be procured. The larger coins constantly their value; but, to be entirely convenient, they should depart from circulation, while the smaller coins remain; require only to be counted: and when weight becomes and it is often found, that nearly all the coins remaining the necessary, or ordinary test of the value of coins, in use consist of the minor pieces. much of their convenience is lost. When actual weigh

The large coins which are converted into bullion, ex-ing decides that coins are greatly diminished, it decides ported from the country, or used in manufactures, are the that they are no longer fit for convenient use. Coins so coins which are most convenient to the whole communi-inferior in usefulness, cannot be justly ranked with those ty, when large sums are to be paid and received; and the which being of full weight, or slightly reduced, afford the public interest is, that a considerable portion of the cur- great convenience of a currency by tale. rent coins should be those which are adapted to the object of paying large sums with facility. A due portion of large coins should therefore, not only be issued, but also be retained in circulation. This end is to be attain ed only by rendering such coins necessary for the large payments to which they are adapted.

While a coin retains the stamp of the mint, that impression certifies the denomination of the piece, and the quality of the metal. When coins are so worn, that their inscriptions and distinctive marks are effaced, they have lost the character which they received from the mint; and without that manifest character, they are not coined money. When a piece is so reduced, that its appeareance does not indicate whether it is of one denomination or another, or whether it is of the national mint or of foreign coinage, its purity and weight are uncertain; and it wants the qualities of money. That coins reduced to disks of smooth metal, should be legal money, is quite too inconvenient; and it is unnecessary that they should be so, where the public mint is always ready to convert them into perfect pieces.

As a regulation in this respect, it is proposed that the silver coins less than a dollar, shall not be a legal tender for any sum exeeding ten dollars. The sum proposed for this purpose, by Mr. Lowndes, in a report made in the House of Representatives, on the twenty-sixth day of January 1819, was five dollars; but this sum seems too low. If a new system were now to be instituted, or if all our different coins were in circulation, in due proportion to each other, the sum of rive dollars might be taken as the convenient rule, in this particular. In the actual state of our coins, the sum of ten dollars appears preferable; and this sum will sufficiently guard creditors against the inconvenience of receiving large payments injected.

small silver coins.

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The sixteenth section of the act of the second day of April, 1792, is in these words: "All the gold and silver coins which shall have been struck at, and issued from "the said mint, shall be a lawful tender in all payments "whatsoever; those of full weight, according to the respective values hereinbefore declared, and those of "less than full weight, at values proportional to their "respective weights."

"

All such coins are unfit for circulation by tale; and their compulsory currency, by weight, is an inconvenience to which the community ought not to be sub

The currency of diminished coins has a powerful tendency to expel perfect coins from circulation. In every society where coins are used, they are treated very dif ferently, by two classes of persons. One class, compris ing far the greater number, pay and receive coins, without regard to their actual weight; and the great circulation of the community takes place, by mere tale. Another class consists of persons who, in various ways, deal in the precious metals as merchandise; and this class The legal value of our coins of gold and silver, thus traffic in coins, according to their actual weight and independs on their actual weight. This regulation in-trinsic value. While an immense majority of the society volves the inconvenience, that our coins must be actually are incessantly circulating diminished coins, as equivalent weighed, when weighing is required; but this inconve- to those of full weight, dealers in gold and silver are nience cannot be avoided, without incurring a greater constantly making the discrimination which is not made evil. Coins unequal in weight and intrinsic value, but by others; and their business is to derive profit from these bearing the same legal value, are a source of grievous disparities. While others circulate by tale, they ascer disorder and injustice; and all coins, however un form tain the value of coins by weight. They receive coins in weight, when they leave the mint, afterwards become of full weight, and pay those of reduced weight; they reduced and unequal in intrinsic value. Our system, exchange diminished coins for coins of full weight; and therefore, prescribes the weights which shall be given to the constant commerce of the society renders these subour coins by the mint, and their legal values when they stitutions easy and endless. When a diminished coin has have those weights; and direct, that coins of less than been used to obtain a coin of full weight, for gain, the full weight, shall have legal values, according to their coin of full weight circulates no more. It is converted actual weights. The currency of our gold and silver into bullion or treated as bullion; and is exported, or coins, by mere tale, is neither enforced nor prohibited; used in manufactures, as bullion is wanted for either of but is left to take place, according to convenience and these objects. consent. But in enacting the principle, that the value While the weight of coins is incessantly reduced by shall be controlled by the weight, universal terms have the friction of ordinary use, this is not the sole cause of been used, by which all our gold and silver coins, how-their diminution. Coins are easily reduced to any inever diminished in weight, are made legal money, and in ferior weight, by artificial means. Various processes, this respect, a restriction is necessary.

The smallest and lightest remnant of a coin, is now legal money, equally with a perfect piece of a full weight; and it is in the option of a debtor, to discharge his debt, either in coins of full weight, or in those which are diminished to any inferior weight.

Coins which must be weighed to ascertain their value, are very inconvenient money. When coins, manifestly much diminished, are offered in payment, the creditor must, in justice to himself, require that they shall be actually weighed; and weighing must be followed by the calculations requisite to convert weights into pecuniary values. These proceedings are exceedingly troublesome. Coins should, indeed, be liable to examination of their actual weight, as the ultimate and controlling test of

some of which are denominated filing, clipping, boring, scaling, and sweating, are employed to substract from coins of full weight, a portion of their metal. The coins so reduced, are put into circulation by tale; and the value of the metal withdrawn, is gained by those who perform these operations. These practices are forbidden by law ; but as they are, or may be secret, they cannot be repressed.

Ordinary use and artificial reductions thus co-operate to diminish the weight of coius: and new aliment is constantly given to the business of procuring coins of full weight by means of those which are lighter. But these exchanges are not limited to the acquisition of coins of full weight. When all the coins are below full weight, they still, to a great extent, circulate by tale. But some

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