It may well be questioned whether the severity of the existing statute might not properly be relaxed after the lapse of so long a time, during which the privilege of registry has been denied to this class of vessels, and since the grounds for denial have, in a measure, lost their original force. It has always been the policy of the law to restrict the privi leges of American registry to vessels built in this country. The object was to further the ship-building and naval interests of the country; and this policy was so successful as to advance the United States to the second rank among nations as respects tonnage and the number of its ships. While wood was the article mainly used in the construction of ships, we had the advantage over foreign nations in the cost of material. Our ship-builders could not only supply vessels for domestic commerce, but could successfully compete in the carrying trade of the world. The use of iron in ship-building, in place of wood, is, however, steadily increasing, and in the cost of iron and in the price of labor other commercial nations have the advantage. It is a grave question of public policy whether the period has not arrived when the unlimited right of purchase, as under the English statutes, should be extended to vessels as well as to other commodities, and when admission to American registry upon the payment of duties should be allowed them upon importation. The recovery of our old position in the carrying trade will more than counterbalance any disadvantage likely to ensue from a modification of restrictions upon the right of purchase, while a moderate duty on ships imported will enable our ship-builders to compete successfully in the construction of iron vessels of the largest class. The proper policy to be pursued is difficult to determine, but the great importance of considering the subject is respectfully submitted to the attention of Congress.

EXPORTS AND IMPORTS.

The exports and imports of the United States during the last fiscal year, are as ollows:

Compared with the previous year, the imports are greater by

$8,726,243, and the exports by $15,573,675.

The annual average of the excess of such imports over exports for the ten years ended June 30, 1873, is $104,706,922; but during the last four years there has been an excess of exports over imports as follows: In 1876, $79,643,481; in 1877, $151,152,094; in 1878, $257,814,234; and in 1879, $264,661,666.

The total gold value of exports of domestic merchandise from the United States has increased from $275,166,697 in 1869, to $698,340,790 in 1879, an increase of 154 per cent. With one or two unimportant exceptions, the United States stands alone among the commercial nations in having an excess of exports over imports of merchandise.

The increase in the values of our exports is derived mainly from breadstuffs, preserved meats, copper, live animals, agricultural implements, furs and fur-skins, distilled spirits, and refined sugar. Many other articles exhibit a large increase in the quantity exported, but a decrease in value owing to their lower prices. The articles which show the greatest increase in the quantities exported are wheat, flour, oats, corn, rye, copper, cotton, petroleum and other oils, provisions, (excepting beef and lard,) quicksilver, distilled spirits, starch, sugar, molasses, tallow, and leaf tobacco.

The value of the exports of breadstuffs from the United States dur ing the last fiscal year, amounted to $210,355,528, and constituted 30 per cent. of the total value of our exports of domestic merchandise. The value of breadstuffs exported during the year 1873, amounted to only $98,743,151.

The almost unlimited capacity of the western and northwestern States for the production of cereals, in connection with the facilities for cheap transportation, has brought them into sharp competition with the older States and with foreign countries.

Many products of American manufacture, previously exported in small quantities, or not at all, now find profitable markets in foreign countries, and some of these products are now exported to countries from which, a few years ago, they were largely imported into the United States.

The importation of merchandise into the United States amounted to $642,136,210, during the fiscal year ended June 30, 1873. It fell to $437,051,523 in 1878, and increased to $445,777,775 in 1879-an increase of $8,726,252, or of two per cent. as compared with the preceding year. The importation of railroad-bars declined from 531,537 tons in 1872, to 2,611 tons in 1879. The production of railroad-bars in the United States during the year 1878, amounted to 788,112 tons.

The total amount of exports and imports of coin and bullion during the last fiscal year, was as follows:

Exports of coin and bullion..

Imports of coin and bullion...

Excess of exports over imports.

$24, 997, 441

20, 296, 000

4, 701, 441

During each year since 1861, the exports of specie have exceeded the imports of specie. The largest excess of such exports over imports was reached during the year 1864, when it amounted to $92,280,929. Since the year 1875, the excess of exports of specie has rapidly declined, amounting during the year ended June 30, 1878, to only $3,918,811, and during the fiscal year ended June 30, 1879, to only $4,701,441.

A marked change has recently taken place in the movement of the precious metals. During the months of July, August, and September of the current fiscal year, the imports of coin and bullion exceeded the exports $33,125,337, and from the 1st of October to the 15th of November the imports of coin and bullion at the port of New York exceeded the exports at that port $26,381,584, indicating that from July 1 to November 15 the entire imports of coin and bullion exceeded the exports about sixty million dollars.

This marked change in the movement of coin and bullion was not unexpected. During the last four years the value of our exports of merchandise has exceeded the value of our imports of merchandise $753,271,475. The excess of exports has heretofore been mainly met by the remittance to this country of American securities, but the time appears to have come when the balance of trade in our favor is to be adjusted by means of the precious metals..

INTERNAL COMMERCE.

The internal commerce of the country, as exhibited by the tonnage transported on railroads, has steadily increased in volume, even during the period of commercial depression of the last six years. This affords an illustration of the recuperative powers of the country, as the commodities transported on railroads are the products of agriculture, of mining, and of manufacturing industries. More than ninety per cent. of the internal commerce of the country is now carried on by means of railroad transportation, and the habits of the producing and commercial classes are becoming more and more conformed to its methods and necessities.

The facilities for direct trade afforded by arrangements entered into

between connecting railroads has greatly extended the trade limits of the seaports and of all interior points.

Similar combinations between railroads and ocean-steamer lines afford extensive privileges for direct foreign trade at all the important interior points of the country. The competition of rival lines for through-traffic has given rise to grave questions touching inter-State commerce. These questions relate chiefly to the matter of discriminations in rates. As purely national questions they demand a careful investigation under the authority of Congress.

CLAIMS.

The need of some legislation for the adjudication of claims which are now within the jurisdiction of this Department, has been called, in former reports, to the attention of Congress. Proper methods for investigating claims, such as are used in courts of justice, are not within the power of the Department. A tribunal which may require the best evidence which the nature of the case admits, the crossexamination of witnesses instead of ex parte statements, a public hearing, and a public record of proceedings, is essential for the proper adjustment of such claims.

Section 1063 of the Revised Statutes contains a provision for sending to the Court of Claims certain disputed cases arising in the Departments. A general provision of law by which all important disputed questions of law or fact might be remitted to that tribunal for trial, would greatly relieve the officers of this Department, and tend to promote the ends of justice. It may be assumed that the methods adopted by all courts of justice for ascertaining the truth, best subserve that purpose.

The importance of providing some limitation of time within which claims against the Government shall be prosecuted, or, for want of such prosecution, be forever barred, is again urged upon the attention of Congress.

It may be assumed that any claim in behalf of an individual who is in a situation to present it, will, if well founded, be presented for payment within six years from the time when the claimant's right first accrued. Such limitations form part of the codes of all civilized nations, and experience has shown that, as between individuals, less injustice is done by the conclusive presumption that claims, thus delayed beyond a reasonable time, are unfounded or have been adjusted, than by allowing them to be prosecuted after witnesses to the transaction have died or been lost sight of, and other evidence has been destroyed.

The presumption is much stronger in case of a claim against the Government than in one against an individual. The Government is always solvent, and can always be found, and it is difficult to suggest a reason why a valid claim against it should not be presented within the term of six years.

Under the present circumstances, it is impossible to administer equal justice to those who present old claims. The Comptrollers and Commissioner of Customs have by law the final determination of all claims coming within their jurisdiction, and while one of them, or the Auditor who first considers the claim, may reject it, because its prosecution has been for many years delayed, and he therefore believes it to be unfounded, another officer feels it his duty to examine it upon such evidence as may still exist, because Congress has not interposed a statute of limitation in bar of its allowance. The Third Auditor, in his report, has called special attention to the importance of some limitation of this character.

It is recommended, therefore, that it be provided by law that no claim pending in any of the Executive Departments shall be allowed unless presented for payment within six years after such claim first accrued, with the usual exception in favor of those disqualified by age, or otherwise, from presenting the claim within such time.

Legislation of a similar character in favor of those against whom the Government holds claims seems eminently proper. Cases of great hardship arise in which sureties upon bonds of a principal long since dead or insolvent are held liable to pay balances upon accounts, which might, by due diligence, have been enforced against the principal while he was alive or solvent, as the case might be.

A distinction is made in most codes as to the limitation of suits upon simple contracts and upon contracts under seal. It seems, however, but justice to provide that persons liable to the Government, even by contracts under seal, should be discharged from liability after the lapse of six years from the time when such liability has been ascertained and fixed.

As to claims accruing in the ordinary course of current business, the Department is well organized for their investigation, and a decision, made as final by the accounting officers, should be regarded as final in all tribunals; and it is believed that all propositions for the re-examination of claims thus adjudicated, either in the Court of Claims or elsewhere, are opposed to the true principles of legislation. It is submitted that the true end of legislation on the subject of claims is, to render their adjustment speedy and final, and to discourage the allowance of old demands, or the re-examination of those already settled.