As

fund of tonnage dues and fees exacted in excess of the sums required by law to be paid in particular cases. regards this part of its duties, it receives reports from customs officers of all vessels arriving in their respective ports, and makes a register of the same under convenient heads, showing the name of the vessel, her character and rig, her tonnage admeasurement, and the amount and time of the payment of tonnage dues. It gives attention to the admeasurement, naming, and numbering of vessels, and to the carrying trade, under the peculiar benefits and restrictions of the law, whether coastwise or from or to foreign countries.

406. This division gives its attention also to the adjustment of claims for drawback of internal-revenue taxes; also to other internal-revenue matters engaging the immediate attention of the Secretary of the Treasury.

407. It adjusts the compensation to be allowed to informers, both under internal-revenue and customs laws, in accordance with section 3463 of the Revised Statutes as regards the first, and with the act of June 22, 1874, (Stats. 18, p. 186,) as regards the latter.

408. It has charge also of the compromise of claims and suits, on application of parties indebted to the United States, for the benefit of sections 3229 and 3469 of the Revised Statutes, with the exception of those arising under the customs laws.

In regard to the compromise of claims generally, the authority of the Secretary of the Treasury is restricted toor, in other words, his jurisdiction is obtained only uponthe favorable recommendation of the United States attorney, or other attorney or agent having charge of the claim, and the concurrence in such recommendation of the Solicitor of the Treasury.

In cases arising under internal-revenue laws, specially

provided for by section 3229, the interposition of either of these officers is not required. When such a case is not in suit, the Commissioner of Internal Revenue may compromise, with the consent. of the Secretary of the Treasury alone; but after suit the consent of the Secretary must be joined with the recommendation of the Attorney-General. According to an opinion of the Attorney-General, a case of this character, after judgment, becomes subject to the general power of compromise given by section 3469, requiring for its exercise the concurrence of the United States attorney, the Solicitor of the Treasury, and the Secretary of the Treasury.

409. This division also gives direction to the authority of the Secretary under law to remit fines, penalties, and forfeitures incurred under laws relating to steam vessels; also those incurred for violation of the customs or navigation laws, or laws imposing duties or taxes. (R. S., §§ 5292, 5294; act June 22, 1874, Stats. 18, p. 189.)

410. In the latter case the statutes provide that the petitioner, if the value of the merchandise or vessel seized or subject to seizure is over one thousand dollars in value, shall present his petition to the judge of the district wherein the alleged violation occurred, or in which the property is situated, setting forth the facts and praying for relief; whereupon the judge is directed to inquire in a summary manner into the circumstances of the case, giving due notice to the United States attorney and the collector of the port. The facts appearing on such inquiry are required to be stated and annexed to the petition, and, together with a certified copy of the evidence, to be transmitted to the Secretary of the Treasury, who has power, upon such statement and evidence, to remit the fine, penalty, or forfeiture, or remove the disability, if in his opinion the same was incurred without willful negligence or intention of fraud in

the person incurring the same, and to direct the prosecution to cease, if any, on such terms and conditions as he may deem just. In cases where the fine or forfeiture has been incurred under laws for imposing or collecting duties or taxes, or relating to registering, recording, enrolling, or licensing vessels, and does not exceed fifty dollars, or under any revenue law and the amount does not exceed one thousand dollars, or under any law relating to steam vessels, the Secretary may ascertain the facts upon any application for remission, &c., in such manner as he may deem proper.

If he is satisfied of the absence of willful negligence or of intention of fraud, according to the terms of the statute, his decision is embodied in an instrument, under seal of his department, known as a "warrant of remission." Such warrant declares the remission of the fine or forfeiture, and the terms and conditions upon which it is to take effect. If a proceeding is pending in court for the enforcement of the forfeiture or penalty, the customary routine has been to transmit the warrant to the Solicitor of the Treasury, who sends it to the proper United States attorney, with instructions that it may be duly filed in court, and may operate to release the party from his liability upon a compliance with its conditions.

411. This division also considers such internal-revenue matters as properly come before the Secretary of the Treasury. Among these are the compromise of internalrevenue cases, already referred to; the refund of taxes erroneously or illegally assessed; the business relating to lands sold and disposed of under the direct-tax law; the withdrawal of alcohol or spirits from bond free of tax for the use of scientific institutions, according to the provision of section 3297 of the Revised Statutes.

V. LOAN AND CURRENCY DIVISION.

412. This division has supervision of the bonded debt of the United States. It issues all orders for engraving, printing, and numbering the Government bonds, and receives, seals, and makes a correct serial record of them before they are issued by the department. No original bond goes out without the examination, sanction, and order of this division, and, likewise, without such sanction no registered bond received on a transfer passes from the control of the Treasury Department. The bonds outstanding and authorized are known by different designations or titles, to distinguish one from another, and a separate record of and account with each description of the loan is kept in this division.

413. The number of loans so designated and outstanding, including those current, in whole or in part, as well as those which have matured, is as follows:

Twelve bearing interest in coin.

Two bearing interest in lawful money.

Twenty-two which have matured, and on which interest has ceased.

Six made up of non-interest currency notes and certificates of deposit.

One of the two loans bearing interest in lawful money is composed of the Pacific railway bonds, issued to the six Pacific railway companies, in different proportions, for use in the construction of the roads, as provided by the acts of July 1, 1862, and July 2, 1864. The United States is bound absolutely for the payment of these bonds. This liability is secured, however, by a second mortgage on the road, property, and equipments of the several companies.

414. The only bonds now being issued by the United States are those of the funded loan of 1907, authorized by

the act of July 14, 1870, bearing interest at four per centum. Subscriptions to that loan are now being received. Still another loan is authorized, at four and a half per centum, by that act, to the limit of three hundred millions of dollars. Bonds of this last-named loan have been issued to January 1, 1879, aggregating two hundred and fifty millions of dollars. Of the first-named loan, authorized at four per cent., limited by the act to one thousand millions, there had been issued to the date aforesaid bonds aggregating three hundred and thirty million seven hundred thousand dollars.

415. The issue of any of these bonds, however, does not increase the national debt; for the law authorizing them specifically provides that their proceeds shall be applied to the redemption of any of the bonds outstanding known as five-twenty bonds, at their par value, or that any of the new issue may be exchanged for the five-twenties, par for par, and for no other purpose. The purpose of the law is simply to fund, as far as it can be done, a large portion of the outstanding debt, bearing interest at six per cent., into a loan at a smaller rate of interest.

The resumption act of January 14, 1875, also provides that the Secretary of the Treasury may sell either of these descriptions of bonds, and use the proceeds for the purposes of resumption of specie payments.

416. By the provisions of the act referred to of 1870, the Secretary of the Treasury, when he is prepared to pay or cancel any amount of these five-twenty bonds, is required to give a public notice, and therein to indicate the particular bonds to be paid or cancelled by class, date, and number, in the order of their numbers and issues, beginning with the first numbered and issued. In three months after the date of such public notice the interest on the bonds so advertised is to cease. By a subsequent act of January 25,