for the interest of the United States, as
the chief producer of silver, to recognize the great change that
had occurred in the relative market value of silver and gold in
the chief marts of the world, to adopt a ratio for coinage based
upon market value, and to conform all existing coinage to that
ratio, while maintaining the gold eagle of our coinage at its
present weight and fineness.

I called attention, also, to the tariff as it then existed. It
was a compilation of laws passed during many succeeding years, and
to meet the necessities of the government from time to time. These
laws furnished the greater part of our revenue, and incidentally
protected and diversified home manufactures. The general principle
upon which they were founded was believed to be salutary. No marked
or sudden change, which would tend to destroy or injure domestic
industries built up upon faith in the stability of existing laws,
should be made in them. I recommended that _ad valorem_ duties
should be converted into specific duties as far as practicable,
and that articles which did not compete with domestic industries,
and yielded but a small amount of revenue, should be added to the
free list. I urged the importance of stability in the rates imposed
on spirits, tobacco and fermented liquors. These articles were
regarded by all governments as proper subjects of taxation. Any
reduction in the rates imposed a heavy loss to the owner of the
stock on hand, while an increase operated as a bounty to such owner.

During that year, the excess of exports over imports amounted to
$167,683,912. The aggregate exports amounted to $835,638,658, an
increase over the previous year of $125,199,217.

The usual statement of the operations of the different bureaus of
the department was made, and, in closing my last annual report as
Secretary of the Treasury, I said:

"The secretary takes pleasure in bearing testimony to the general
fidelity and ability of the officers and employees of this department.
As a rule they have, by experience and attention to duty, become
almost indispensable to the public service. The larger portion of
them have been in the department more than ten years, and several
have risen by their efficiency from the lowest-grade clerks to high
positions. In some cases their duties are technical and difficult,
requiring the utmost accuracy; in others, they must be trusted with
great sums, where the slightest ground for suspicion w