the operations in bullion and coin, and the estimation of the value of foreign coins, are also among the duties of the office. Since the passage of the act of February 28, 1878, which requires the purchase and coinage into silver dollars of silver bullion, "not less than two million dollars' worth per month, nor more than four million dollars' worth per month," the purchases of bullion for the silver-dollar coinage are passed on and recommended by the Director, although made by the Secretary of the Treasury. All records relating to the purchase and delivery of silver bullion for monthly coinage of standard silver dollars are kept in the Bureau of the Mint. The act making appropriation for sundry civil expenses of the Government for the fiscal year 1881, provided a sum "for the collection of statistics relative to the annual production of the precious metals in the United States." The task of gathering these statistics was assigned to the Director of the Mint, and subsequent appropriation acts placed their collection under his direction. This task has added largely to the work of the Bureau and necessitates the compilation and publication of an annual report. The first of the series of "Production Reports" was for the calendar year 1880. More in consequence of information sought of this Bureau by public men and committees of Congress, than by force of statutory enactment, the compilation of the precious-metal statistics of this country as well as of the production, coinage, and movement of gold and silver in foreign countries, has become one of the most laborious as well as important duties of the Bureau. The gathering of these statistics was commenced by Dr. Linderman, immediately after his appointment as Director. They were enlarged and improved upon by his successor, Mr. Burchard, and still further perfected by my immediate predecessor, Dr. Kimball. As the compilation of these statistics has for many years been my special province, it will be my duty as well as pleasure, during my official career, to bring them as near completeness as possible. The act of March 3, 1878, making appropriations for the legislative, executive, and judicial expenses of the Government for the fiscal year ending June 30, 1878, allotted the sum of $500 "for fitting up an assay laboratory in the office of the Director of the Mint." Under the provivisions of this and subsequent appropriation acts, a laboratory was established on the fourth floor of the Treasury building, and pieces of each denomination of coin taken from the first and two subsequent deliveries each week of gold and silver coins delivered by the coiners to the superintendents of the coinage mints, are sent to this Bureau to be tested as to weight and fineness. The laboratory has proved a valuable adjunct to the Bureau, enabling the Director to know from day to day whether the current coinage conforms to the requirements of law. Special examinations are also made in the laboratory, for the Treasury Department, of coins and other material, for the purpose of detecting and preventing counterfeiting, and for customs requirements. Work in the laboratory was temporarily suspended September, 1888, and the coins received at the Bureau tested at the assay office in New York City. Mr. Cabell Whitehead, a graduate in metallurgy of Lehigh University, and who occupied a position as assayer in the mint at Philadelphia, and more recently in the assay office at Boisé City, was appointed assayer in the office of the Director of the Mint, and entered on duty September 25, 1889. Since his appointment the coins reserved at the mints for monthly examination have been tested in the laboratory, and regular work in it has been resumed. During the period that work in the laboratory was suspened several valuable improvements in apparatus were made, notably the introduction of two modern gas cupelling and two melting furnaces, also a new "Root" blower. The laboratory is now excellently equipped for effi cient work. The position of computer of bullion, made vacant by my appointment as Director, has been filled by the appointment of Mr. B. F. Butler, a gentleman well trained in the technical business of the mints, having occupied successively the positions of weigher, assistant coiner, and cashier, in the mint of the United States at New Orleans, for a period from September 25, 1878, to June 30, 1886. It is with pleasure that I bear testimony to the zeal and fidelity with which the officers and employés, constituting the present clerical force of this office, have performed the official duties entrusted to them, and the valuable and untiring assistance which they have rendered me in the preparation of this report. I am, very respectfully, yours, Hon. WILLIAM WINDOM, Secretary of the Treasury. EDWARD O. LEECH, Director of the Mint. REPORT OF THE COMMISSIONER OF INTERNAL REVENUE. TREASURY DEPARTMENT, OFFICE OF INTERNAL REVENUE, Washington, D. C., November 1, 1889. SIR: I have the honor to submit the following report, covering the operations of the Bureau of Internal Revenue for the fiscal year ended Jane 30, 1889, together with certain additional information concerning the work performed during the first quarter of the current fiscal year. COLLECTIONS FOR THE CURRENT FISCAL YEAR. I estimate that the sum of $135,000,000 will be collected from the various sources of internal revenue during the current fiscal year, provided, of course, that the existing laws and rates of taxation now imposed are maintained. In the last annual report from this Bureau it was estimated that the receipts for the fiscal year ended June 30, 1889, would reach the sum of $125,000,000. It affords me pleasure to state that this estimate was exceeded by $5,894,434.20, the actual receipts being $130,894,434.20. COLLECTIONS FOR FISCAL YEAR ENDED JUNE 30, 1889. The following statements exhibit in detail the amount of internal revenue collected during the fiscal year ended June 30, 1889, the sources from which the revenue was derived, the total sum collected in each district and State, the cost of collection, etc.: INTERNAL-REVENUE RECEIPTS DURING THE LAST TWO FISCAL YEARS. COMPARATIVE STATEMENT SHOWING THE RECEIPTS FROM THE SEVERAL OBJECTS OF INTERNAL TAXATION IN THE UNITED STATES DURING THE FISCAL YEARS ENDED JUNE 30, 1888 AND 1889. COMPARATIVE STATEMENT SHOWING THE RECEIPTS FROM THE SEVERAL OBJECTS OF INTERNAL TAXATION IN THE UNITED STATES, ETC.-Continued. STATEMENT SHOWING THE AGGREGATE COLLECTIONS OF INTERNAL REVENUE BY STATES AND TERRITORIES DURING THE FISCAL YEAR ENDED JUNE 30, 1889. b Including the Territory of Wyoming. e Including the State of Rhode Island. d Including the Indian Territory. e Including the State of Mississippi. lections. $4,319, 618. 58 59, 062.67 15, 648, 675. 01 2,467, 150. 27 11, 566, 727. 51 226, 524.99 8, 520, 796.56 81.722.51 1,006, 335. 77 228, 117. 52 3, 303. €26.48 781, 663, 47 3,096, 495.92 130, 894, 419.70 14.50 130, 894, 434. 20 Including the State of Delaware, District of Columbia, and two counties of Virginia. Including the Territories of Idaho and Utah. Including Dakota. Including the States of Maine and Vermont. k Including the Territory of Arizona. I Including Alaska and the Territory of Washington. TOTAL COLLECTIONS YEAR ENDED JUNE 30, 1889, IN STATES OR TERRITORIES CONSOLIDATED WITH OTHER DISTRICTS. The cost of collection for the past fiscal year, distributed among the different items of appropriation, was approximately as follows: For salaries and expenses of collectors, including pay of deputy collectors, clerks, etc., and including expenses incident to enforcing the provisions of law taxing oleomargarine.... For salaries and expenses of revenue agents, surveyors of distilleries, For expenses of detecting and punishing violations of internal-reve- For salaries of officers, clerks, and employés in the office of Commissioner of Internal Revenue.. Total........ $1,747, 360. 17 2, 107, 637.00 44, 563.31 29, 138.03 257, 030. 14 4, 185, 728.65 The percentage of the cost of collection is a fraction less than 3.2 per cent., which is exactly the same as the percentage of cost for the fiscal year ended June 30, 1888. Owing to the great number of distilleries in operation during the last fiscal year, and the increased quantity of spirits produced, resulting in an increase of the taxes collected from that source, as compared with the receipts of the previous year, of more than $5,000,000, as shown in the accompanying statements, the expenditures for the salaries of store-keepers, and the fees of gaugers were largely in excess of the amount estimated when the appropriation was made therefor. The result was, there were not funds enough to pay these officers in full for the month of June, 1889, and they have been paid up to the 8th of June only, leaving their accounts for the remainder of the month of June unpaid until an appropriation is made to cover this deficiency. The amount of this deficiency, as shown by accounts now on file, is $107,637, and has been included in the cost of collection, as above stated, so that it appears that the increase in the cost of collection, as compared with the previous year, is in exact ratio with the increased collections. As the provisions of section 3154, Revised Statutes, require the assignment of a store-keeper to every distillery warehouse established by law, and of sections 3287, 3295, and 3320, Revised Statutes, require the pres ence of a gauger at every distillery or rectifying establishment, whenever spirits are to be gauged, the employment of these officers was not only compulsory, but absolutely necessary to enable the proper officers to collect the taxes on distilled spirits and protect the interests of the Government, even after it became evident that the appropriation for their payment was insufficient. The statement of the cost of collection does not include the cost of printing internal-revenue stamps, the appropriation for which is made directly to the Bureau of Engraving and Printing, and is not under the control of this office. |