ADDITIONAL ESTIMATES — MINT, SAN FRANCISCO.

LETTER
from
THE SECRETARY OF THE TREASURY,

Transmitting
Additional estimates for the branch mint at San Francisco.

January 9, 1857. — Referred to the Committee of Ways and Means, and ordered to be printed.

Treasury Department, January 7, 1857.

Sir: I have the honor to submit a copy of a letter from the director of the mint, of the 3d ultimo, recommending that the appropriations for the branch mint at San Francisco may be increased for the service of the year to end June 30, 1858, over the sums contained in the printed estimates, as follows:

And also recommending an appropriation of $40,000 to cover deficiencies.

Under date of June 30, 1856, the director of the mint reported to me his having been advised of a deficiency at the said branch, and recommended that an estimate should be submitted to Congress for the sum of $30,000 to cover the amount; but having doubts upon the subject, and being desirous first to ascertain whether the expenditures at this branch had been judiciously and economically made, I declined at that time to submit such estimate.

In order to ascertain the general character of these expenditures the accounts of the branch were examined, and a letter, under date of July 4, 1856, was addressed to the superintendent, pointing out items which appeared to be objectionable, and this letter having been sent under cover to J. Ross Browne, special agent of the department, he was instructed to investigate and report upon the subject. His report of this examination into the affairs of the branch mint, and showing considerable reduction in the current expenses, bears date August 5, 1856, and, with the reply of the superintendent of August 4, and other papers herein referred to, is respectfully submitted.

I am, very respectfully,

JAMES GUTHRIE,
Secretary of the Treasury.

Hon. N. P. Banks, Jr.,
Speaker House of Representatives.

Mint of the United States,
Philadelphia, June 30, 1856.

Sir: I regret the necessity of calling your attention to a deficiency in the appropriation and means applicable to the ordinary expenses for the branch mint at San Francisco, California, during the fiscal year ending to-day. I have just received a letter on this subject from the superintendent of that branch of the mint. He says: “I would beg leave to call your attention to the state of our means for the balance of the present fiscal year. By reference to my letter of the 19th December last, in reply to yours of the 19th November, you will perceive that I made no calculation for paying the whole or any part of the acid contract in New York, but excluded it entirely from my estimate, but I find in your last account a payment of $3,337 62 for acid, which payment, together with the large drafts on our ‘wages appropriation,’ will render it absolutely necessary that we have a deficiency appropriation of at least $20,000, exclusive of the $10,000 to be paid for acid, or $30,000 in all, which amount you will please ask for, that we may have it at the earliest possible moment, as the workmen have not been paid for the month of May, and they are obliged to borrow money for their support at 3 per cent. per month.”

It would appear that the deficiency stated arises, in a great measure, from the large amount of coinage which has been executed, and a consequent increase in expenses, especially in the wages of workmen, there being a large force employed and much overtime allowed. As requested by the superintendent, I commend the subject to your attention.

I have the honor to be, with great respect, your faithful servant,

JAMES ROSS SNOWDEN,
Director United States Mint.

Hon. James Guthrie,
Secretary of the Treasury
Washington, D. C.

Mint of the United States,
Philadelphia, December 3, 1856.

Sir: By the late mail from California I have received a detailed statement of the appropriations required for the support of the branch mint at San Francisco for the fiscal year ending June 30, 1858. These estimates I now transmit to the department, in accordance with the suggestion contained in my letter of the 27th day of October last.

The increase in the several items of appropriation are as follows:

Under this view, the appropriations required for the next fiscal year are as follows:

The incidental expenses are stated at $295,715, but from this is deducted the sum of $165,000 for parting charges, and the balance is as above stated, $94,715, which is required to be appropriated. The superintendent has not expressly included the item of wastage, but he may have considered that item in presenting these estimates; it is probable that the estimates are sufficiently liberal to cover it. The foregoing appropriations are necessary for the proper support of that branch of the mint. For the details, I beg to refer to the papers herewith enclosed.

It also appears that there will be a deficiency in the appropriation for the present fiscal year, arising in part from the fact that the appropriations for the last fiscal year were inadequate, and bills to a considerable amount (the payment of which were necessarily postponed) have been paid from the appropriations for the current year. In order that that branch may be relieved from embarrassment, and be enabled to make advantageous purchases of supplies, I recommend to your consideration the propriety of asking for an appropriation of forty thousand dollars, to supply the deficiency in the appropriations for wages of workmen and incidental expenses for the present fiscal year.

I have the honor to be, with great respect, your faithful servant,

JAMES ROSS SNOWDEN,
Director United States Mint.

Hon. James Guthrie,
Secretary of the Treasury
Washington City.

Treasury Department, July 4, 1856.

Sir: Enclosed you will receive a copy of a letter this day addressed by me to Peter Lott, esq., superintendent of the branch mint at San Francisco. You will also receive a copy of the regulations mentioned in the said letter, to which I ask your attention; and, further, you will receive a statement, prepared by the register, showing the quarterly expenditures of the branch mint from the commencement of its operations to the 31st March, 1856 — the latest period which accounts have been rendered. You will perceive that there has been a gradual increase from the beginning until the last quarter, when the amount is enormously increased over any former quarter.

I wish you to enter immediately upon a thorough investigation of these transactions by examining the different items, and inquiring of the officers or of other sources into the necessity for the said expenditures for labor as for supplies, including the prices paid the faithful application or preservation of the supplies procured for the public use; and to report to me thereon with as much particularity and detail, and in as brief a period, as you may find convenient.

Considering the distance of San Francisco from Washington, and the time required for your report to reach me, and my instructions again to reach San Francisco, I am desirous that the retrenchment that may be found necessary should take place at once upon the subject of wages; this can, I suppose, be immediately reduced at least 33⅓ per cent.

The next most indispensable retrenchment will be in the number of employés, and, so far as you can induce the superintendent to concur in such reduction, that should also take place at once under the third head, to wit: of incidental and contingent expenses. I will thank you to inquire upon what authority, and under what instructions, these expenses are incurred; and to recommend to the superintendent, and report to me, the best mode, in your view, of restricting them within due bounds.

I am, very respectfully,

JAMES GUTHRIE,
Secretary of the Treasury.

J. Ross Browne, Esq.,
Special Agent, &c., San Francisco, Cal.

Treasury Department, July 4, 1856.

Sir: J. R. Snowden, esq., director of the mint, has transmitted to me an extract of a letter addressed by you to him, in which, referring to a payment for acid in New York of $3,337 62, you observe “that this payment, with the large drafts on wages appropriation, will render it absolutely necessary that we have a deficiency appropriation of at least $20,000, exclusive of the $10,000 to be paid for acid, or $30,000 in all, which amount you will please ask for, that we may have it at the earliest possible moment;” and the director, supposing that this deficiency arises from the large amount of coinage, especially in the wages of workmen, has recommended the subject to my attention, with a view to my laying it before Congress and asking an appropriation to meet it.

The payment for so much of the acid as was purchased in New York, and has been stored to meet any future exigency arising from failure of contractors in San Francisco, was, of course, not especially in view, when the appropriation was ample for this and all other purposes if judiciously and economically applied.

I am not satisfied that it has been so managed; but, on the contrary, am led to conclude, from an examination of the accounts of the branch mint, that there has been an improvident and uncalled for expenditure both for wages and for contingencies.

You entered upon your duties as superintendent on the 17th November, 1855. For the quarter ending on the 30th September preceding, the wages of workmen were $34,348 45; and for the quarter ending the 30th December, 1855, they were $34,297 17; but in the quarter ending 31st March, 1856, (the first entire quarter under your superintendency,) the amount rose to $41,263 90 — being an increase of more than 20 per cent. on the preceding quarter. So, in like manner, for the quarter ending 30th September, 1855, the incidental and contingent expenses were $32,040 22; and for the quarter ending 31st December, 1855, they were $28,546 33; whilst for the quarter ending 31st March, 1856, they rose to $57,506 75 — being more than 100 per cent. increase on the amount of the preceding quarter. These excesses alone amount to more than the sum which you represented to be deficient.

Passing from the aggregate to the detail of these expenditures, they appear to me to be excessive in the following particulars:

1st. In the rates of wages allowed;

2d. In the number of employés; and

3d. In alterations, fixtures, repairs, and supplies of every kind made and procured.

Upon the subject of the rate of wages, the course pursued in respect to the custom-house might have suggested to you the proper course to be pursued. In it the compensations have been reduced as the wages of labor have fallen in the market. Common labor is now paid in the custom-house at $100 per month, and in the most trusted places at $120, which are certainly not under the market rates. You should have pursued the same course as well because the reduction would have been proper in itself, but in view of the deficiency which has occurred, instead of keeping up the wages of laborers at five, six, seven, and eight dollars per day.

2d. The excessive number of employés.

For the mere care of the building and attendance in the office, and exclusively of the operatives in the different branches, you have now employed: 4 watchmen, 2 door-keepers, 2 messengers, 1 conductor, 1 porter, 2 laborers, and 2 servants, making 14 persons in addition to 1 millwright at $7 per day, although I find in the abstract of contingent expenses millwrighting for a considerable period charged as a separate item.

All the above persons, except the watchman and millwright, are of the same general character of employment or duties; they are in fact messengers. Ten in number of this description of persons far surpasses any necessity, which does not, in my opinion, call for more than three, or, at most four, such persons.

I cannot judge so well of the number required in the operative department, but from the above sample conclude their number is equally beyond the necessities of the public service.

Upon this subject I must remark that I consider the allowance for extra work liable to great abuses, and otherwise objectionable, and that, although I do not at present absolutely interdict such allowance, for the future, I request you to discontinue the practice, if, in your opinion, it can be done, and if not, that you will report the grounds of the continuance, and the limitations and restrictions provided to prevent abuse.

3d. Incidental and contingent expenses.

The advertising charged for appears to me altogether uncalled for, and considering the number of papers for which charges are made, would seem to be intended rather as patronage to the public press than for necessary information. In point of fact, the notices were for the benefit of the community rather than the branch mint, and would readily have been published by any paper as articles of news interesting to its readers and without charge. What occasion is there in the mint for business directories?

Expensive fixtures and furniture are charged, in respect to the occasion for which, under any circumstances, I have great doubts; but considering the danger of overrunning the appropriation, I have none that they ought not to have been provided, at least until another appropriation should be made. A large bill for carpentry is receipted for by A. Snyder, and if this person is a brother of the treasurer, the employment is open to the prohibition contained in the 16th article of the regulation of 17th March last, of which I enclose a copy.

Bills are charged in the same abstract for labor for long periods, without stating the nature of the work to be done. The charges for repairs of furnaces and machinery, and for new implements and tools, strikes me as being enormous; and I see no credit in the account for any materials or old tools, or implements of furniture superseded and disposed of.

Stationery is purchased in large quantities and at high prices. I find two weigh-books charged at $35 each, and five cap books at $80.

With these facts before me, of the vast increase in the aggregate expenses of the establishment for the very first entire quarter it was under your supervision, of the extravagant wages paid, of the number of employés retained, and of the apparently increased expenses for furniture, stationery, fixtures, alterations, implements, &c., I shall not make an application to Congress as you desire, for an appropriation to supply the deficiency, at least until I shall be better satisfied in respect to the necessity and propriety of said expenditures.

With a view to this end, I shall send a copy of this letter, to J. Ross Browne, esq., special agent of the department in California, and request him to make a thorough examination upon the subject. You will please instruct the treasurer to exhibit to him his books and papers, and the officers generally to give such information and aid in his examinatin in their power, and upon his report, when received, I shall be better able to judge whether the usual appropriations for the branch mint are, or not, sufficient for all proper purposes.

I am, very respectfully,

JAMES GUTHRIE,
Secretary of the Treasury.

Peter Lott, Esq.,
Superintendent Branch Mint, San Francisco, California.

San Francisco, California,
August 5, 1856.

Sir: I have the honor to acknowledge the receipt of your letter of July 4th, relative to the increase of expenditures in the branch mint; and beg to report that, in compliance with your instructions, I entered immediately into a detailed examination of the condition of that institution, embracing a critical analysis of the accounts, and a minute inquiry into all its operations, especially under the superintendency of Mr. Lott.

Upon a careful examination of more than five hundred vouchers, I find the result to be as follows:

Incidental and Contingent Expenses.

The instructions of the department having reference more particularly to the increase of expenditures made by the present superintendent, and it being impossible within any limited period to obtain the necessary explanations relative to all the items embraced in the accounts of the late superintendent, I have referred to them only so far as to determine by comparison the actual rate of increase; how far that increase was rendered necessary by the amount of work performed; whether the prices paid for supplies of all kinds have enhanced beyond the market rates; and whether there is any disproportion in the rates of expenses for the wages of operatives and clerks.

It should be borne in mind that when the branch mint went into operation a considerable portion of the material for current use, was furnished by the Philadelphia mint, and the necessity for purchases in San Francisco was to that extent reduced. Not being able to ascertain the exact amount and value of the supplies so furnished, it would be difficult to determine how far this consideration should prevail in estimating the expenditures under the superintendency of Mr. Lott. When he came into office, he received such unconsumed material as was turned over to him, but the main supplies of coal, acids, sulphur, &c., were exhausted and the amount to his debit was very small.

The vouchers commencing on the 16th of November, show that a large portion of the items of expense apparently incurred by him were for supplies ordered and delivered anterior to his appointment, and are, therefore, not properly chargeable to him. The bills remaining unpaid were presented with the proper certificates; and when he found upon examination that they were correct he paid them. In some instances they had not previously been sent in; in others payment was deferred by the late superintendent on the grounds of a deficiency of means.

Commencing with voucher No. 520, paid November 16, 1855, I propose to submit, with explanatory statements, an abstract of each voucher embraced in the remaining fraction of that quarter, viz:

1st Quarter 1856.

Showing an increase in expenses of about 52⅛ per cent., and an increase in coinage of about 47¼ per cent., the difference in the ratio of gain in the increased amount of coinage not being included.

The above statement of expenses for the 2d and 3d quarters of 1855, as compared with the statement of the Register of the Treasury, requires explanation.

It is also proper to explain that the statement of expenses, &c., for the second quarter of 1856 includes the pay-roll for June, $17,449 50, not yet paid. This increase in the expenses, for wages of workmen and contingent and incidental expenses, is explained in the foregoing statements accompanying the abstract of vouchers.

Wages and number of workmen.

On this subject it is proper that the department should be fully advised as to the precise nature of the work upon which the compensation depends, and the causes which have operated in keeping up the rates of wages in the mint, while there has been a gradual reduction in other branches of the public service.

In the custom-house labor of all kinds is comparatively light and easy; there is no draught upon health or risk of life; no peculiar skill is required to perform the duties; men of ordinary intelligence and good character can fill any of the offices with credit. In the mint, owing to the crowded state of every branch, especially the refinery and melting rooms, the operatives are subject to the greatest possible inconveniences.

The firemen, melters, cellarmen, &c., are subject to such extreme rigors of heat and draught upon health and eyesight, that it is scarcely credible how men can be procured to perform the duties at all for any compensation whatever. In other mints visited by the undersigned, ample accommodation is provided for this class of operatives; and by means of ventilation and otherwise, their labors are rendered comparatively healthful and easy.

The workmen here are all, or nearly all, men of families, of some peculiar skill in the business allotted to them, of highly respectable character, industrious and faithful; such a class of operatives, in short, as always command the highest rate of wages. The same may be said of most of the operatives in the mint; a large proportion of whom have acquired a thorough knowledge of their business by long experience, and who might not improperly be classed as experts. In some respects the coinage of money may be considered a peculiar trade, which must be learned by a species of apprenticeship. Constant or repeated changes, with the fluctuations of outside labor, would be injurious to the public interests; and it is always good economy, where large amounts of treasure are constantly in the hands of workmen, to employ the best and most reliable men, even at an advance upon the prevailing rate of wages. This is the case in all extensive banking establishments, where wages are much higher, as a general rule, than in manufacturing or mercantile establishments. For these reasons it was not deemed expedient by the superintendent to reduce the rates of compensation for labor in the mint; but conceiving the views of the department to be based upon just grounds, I have recommended and caused a reduction to be made. There must be a proportionate decrease, where all the expenses of living are reduced, in the value of labor of all kinds, even where the business is of an exclusive or peculiar character; and although labor in the custom-house may not be worth so much as labor in the mint, they must bear some correspondence.

In regard to the number of workmen employed, it is not really so great as would appear from the pay roll, owing to a deficiency of clerks, whose services were rendered necessary by the increase of business, and for whose employment no provision is made by law. Several persons who appear on the pay roll as laborers are employed in the treasurer’s and superintendent’s office as clerks, and assist in weighing deposits as they pass from one branch to another, in making computations and other kinds of service requiring educated and intelligent men. The fireman who attends the boiler is a practical engineer, and must understand the working of the machinery which he assists in attending. So likewise with other kinds of labor which has to be performed by an interchange of hands in one or more departments as the exigencies of business may require, in all of which extreme nicety of manipulation, judgment and mechanical skill are considered indispensable. Nevertheless, I am unable to come to a conclusion as to a reduction of the numbers.

After full consultation with the chief officers of the coiner’s, assayer’s, melter and refiner’s department, and the combined assurance of these gentlemen that they could not perform the work now done in the mint with a smaller number of employés, unless by an increase of extra hours, I would not feel justified in insisting upon a reduction, although to meet the wishes of the department a reduction was strongly urged. My opinion is that a smaller number of operatives could do the work, but it is not probable they would do it, and that at a reduced compensation, or if they did it is not unlikely the difference would be made up in compensation for extra labor.

On this subject and the rates of wages, I conferred very fully with all the officers, and caused them to explain the duties of each operative in detail, after which I requested statements in writing, which are herewith submitted, marked B, C and D.

Reduction of Wages.

Of the above, four watchmen employed during the excitement in May, to guard the mint, were subsequently placed on the pay roll; three of these at least can be dispensed with as soon as the difficulties are at an end, which will probably be in a few days. The porter, Cornelius Heyer, was transferred from the custom-house where he received $130 per month, and was allowed $60 additional in the mint, in consequence of the importance of his position in attending two vaults; four of the laborers are clerks and one a weighman; one of the messengers is superintendent of the stores in the warehouse and attends to all shipping and outside business; one of the servants is a messenger. I would recommend a reduction of three watchmen, one servant and two laborers in this department, but have not insisted upon it in consequence of the strong representations made by the superintendent as to the necessity of retaining all employed.

To date from August 1, 1856. For details in reference to names and order of reduction, I refer the department to the official list which will be transmitted by superintendent by next mail, and to the accompanying letters and tabular statements, marked B, C, and D.

By reference to the tabular statement of assays, contained in the letter of the assayer, marked C, it will be found that the number of assays is unusually large. This has been deemed necessary to provide against fraud. In most cases three assays of each deposit are made, and in some four are considered necessary. The number of deposits, also, is larger in proportion to the coinage than in any other institution of this kind in the United States. This arises from the fact that a large proportion of the miners are themselves the original depositors. Of course, in estimating the expense of coinage, these facts should be taken into consideration. The books show the following result since the commencement of the operations of the mint.

Showing a very large increase in the number of deposits during the last two quarters, which increase is to be attributed to the fact that where there was formerly delay in making returns to depositors, who were thereby forced to sell out to bankers and money dealers, the returns are now made in one intervening day, and the shipment of bullion to the Atlantic States for coinage has to that extent been diminished.

The branch mint having been established in California to meet the wants of the community on the Pacific coast, it has been the chief ambition of the officers of that institution to make it answer that end by prompt returns to all depositors,* thereby keeping, as far as practicable, a vitiated currency of domestic manufacture out of circulation. The beneficial effects of this is now apparent. Two years ago the coinage of private assay offices exceeded that of the United States in circulation in this State; and the department will remember that this vitiated currency was received and paid out in the public offices, and was made the subject of official complaint by the undersigned. There is now very little of this private coinage to be found, the community having confidence in the ability of the mint to supply all its wants. Most of the bankers and money manufacturers who made immense fortunes at the expense of the industrial classes by whom the gold was extracted from the mines, have broken up, and a general feeling of confidence has obtained in reference to the superior reliability and capacity of a government institution.

[ *See 2d paragraph of letter from Secretary of the Treasury to Superintendent, dated October 18, 1855, in reference to speedy returns.]

If, therefore, in according to the demands of the community in the prompt return of coin to depositors, the superintendent has exceeded the limitation upon the amount of coinage prescribed by Congress in its appropriations for the payment of expenses, it has rather been from a mistaken sense of duty than from any improper motive or official incapacity. Taking into consideration the limited facilities for coinage in a country like this, the cramped and incommodious condition of the refinery and other working departments, it is a matter of surprise that so much has been accomplished in so brief a period by this institution. Nevertheless, it must be admitted that the expenses have been too great, but I feel assured that every effort will be made in future to curtail them.

Believing that great inconvenience might result from any delay in submitting these explanatory statements to the consideration of the department, I have made the investigation as detailed as possible within a brief period; but as this is a subject of great importance, requiring still further and more rigid examination, I must suspend any further recommendation at present, and beg to assure the department that, in accordance with its instructions, every effort will be made to detect any abuses that may exist in this branch of the public service.

Very respectfully, your obedient servant,

J. ROSS BROWNE.

Hon. James Guthrie,
Secretary of the Treasury.

United States Branch Mint,
San Francisco, August 4, 1856.

Sir: I have the honor to acknowledge the receipt of your favor of the 4th ultimo, referring to a deficiency appropriation for this branch mint, for the fiscal year ending June 30, 1856; and also to the great increase of expenditure during my superintendency of this institution over that of my predecessor; also, with regard to the number of employés and the wages paid them.

1st. With reference to the deficiency and the cause of it.

In December last I received from the director of the mint instructions to inquire into our means for the fiscal year ending June 30, 1856, for the purpose of asking for a deficiency appropriation, if necessary. In my reply I stated that, with the exception of the amount due for acids in New York, (say $10,000,) I thought I could get through the year without any deficiency; this report was based upon a gradual increase of work, but not to the extent it has proved to be; and had there been no drafts upon our wages and incidental and contingent appropriations, we could have finished the year without a deficiency. Since my report was submitted to the director, he has advised me, at sundry times, that he has drawn some $16,500 from different appropriations for this branch; that he has paid for acid, $3,337 62; and, in his last, he states that there is still due this branch, from the appropriation for deficiency of 1855, $3,721 40; these amounts together making more than the amount of deficiency we have asked for, that is $20,000.

2d. With reference to the great increase of expenditures, I would here state, that since entering upon my duties I have paid many bills that were incurred under my predecessor, and have also paid for nitric acid (since February 1, 1856) the full amount of the bills; whereas my predecessor was supplied with some $15,000 worth of nitrate of soda which was paid for by government out of the deficiency appropriation of 1855, (and not paid out of the earnings of the mint transferred to his ordinary fund,) and was credited in the bills for acid paid by him. Also, the annual settlement in December last, the expenses incurred by which were very heavy, in consequence of many improvements which were made in the refining and in the melting room, and without which we would never have been able to have done the amount of work which we have done in the two quarters of this year just expired, and which has amounted to the unprecedented sum of nearly eighteen millions of dollars, and that, too, with an increase in expenses in proportion of only twelve per cent. Another great expense has been in the extra time we have been compelled to make in order to keep our payments to depositors up and regular, and which we were entirely unable to do with our then bullion fund, unless with this extra work.

3. With respect to wages of workmen and number employed. — I have conferred with J. Ross Browne, esq., special agent, &c., together with the different officers of the institution, and have reduced the rates of wages as far as it could be done with safety to the institution and to the government. With reference to the amount paid at the custom-house, we can hardly use that as a criterion here, as men could not be found at those rates to do the work that is done here, and especially where there is so much precious metal constantly exposed, and of which small amounts could continually be extracted without being detected until the annual settlement. In the mean time the guilty might have resigned without being suspected, and then the innocent would suffer. These are the reasons why it would be unsafe to employ workmen in the institution (where there is so much precious metal constantly exposed, and temptation always before them) at less wages than they can get at private establishments. With regard to the number of employés, I would say that during the present excited times it has been deemed unsafe to leave the mint with only four watchmen during the night time, (two only being awake at a time,) and consequently I employed four additional.

As regards the doorkeepers, they cannot leave their post, and consequently can be used for no other purpose.

As to the messengers, one acts as warehouse man, and is occupied nearly all the time running to and from the warehouse for supplies, he keeping an account of all goods put in store; the warehouse being about one mile from the mint, (which, in consequence of strong acid, had to be beyond the fire limits of the city.) This leaves only one messenger to attend to the calls of the different offices. The conductor acts as messenger when not engaged with visitors. The porter is a person who has the handling and counting of the treasures in the vault of the assistant treasurer, and, in consequence of our being obliged to have such a man, he was employed to do the work of both vaults rather than employ another man, in which case we should have had to pay him more wages; whereas by the present system it is a saving to government.

As to the laborers, in consequence of being obliged to employ more clerical force, and their being no appropriation to pay them from as clerks, they were placed upon the pay-roll as laborers, and paid from the ordinary fund.

The servants are required to attend to all the different offices, and can hardly be dispensed with. Thus from the above, although there appears to be fourteen persons employed as of a general character, there are three who cannot be counted as belonging to that department, but as clerks.

With regard to the charge for “millwrighting,” in addition to one employed, the charge arose from the fact of requiring an additional man during the last settlement, (it was not thought advisable to place his name on the pay-roll, but pay him by warrant;) and also our regular millwright having nearly ruptured himself in his labors in the institution.

With regard to reducing the number of employés in the different departments, upon an investigation of the case, and consulting with Mr. Browne and the different officers of the institution, it was not deemed prudent or advisable to reduce the number, as it could not be done without greatly retarding our operations, and causing delay in paying deposites, (which are now paid in two days;) or, if we were to reduce the number, we should, in order to make prompt payments, be obliged to make much more extra time, which would amount to about the same thing. As to the number of lady adjusters, it would be unadvisable to reduce their number, as that would seriously retard the coinage operations, unless by much extra work, and ladies are not so able to do that as men.

As to the abuse of the extra work, I would say that the account is made up daily by the different officers of this branch, and at the end of each month certified to as to the correctness by them, then to be placed upon the pay-roll in this manner. I do not see any way that it can be abused except by the officers themselves, and I hardly think it probable or likely that they would do so.

4th. With regard to the incidental and contingent expenses, I have more fully set them forth in my second clause. As to the advertising, I have to state that it was for the purpose of notifying the miners and others of our closing during, and opening after, the annual settlement; and although placed in so many papers, it was deemed necessary as information to them, and not for patronage.

With reference to a “directory,” that is a book that is daily and almost hourly referred to for the supplying of different articles for the institution, and although of so small a cost, still is almost an invaluable book with us.

As to expensive furniture and fixtures, I have only to say that they were deemed necessary by the different officers and myself, such as for instance the oilcloth in the receiving room; the old one was so much worn, having lain for over two years on the floor, and the overflowing of the vat in the refinery last year had completely ruined it, was the reason of replacing it with a new one. The carpet in the coiner’s office was necessary, as his was entirely worn out and entirely unfit for use, and being so full of gold and silver, was replaced with a new one, in order that he might burn the old one. The melter and refiner’s was also entirely worn out and decayed by the action of acid, a cess-pool for the reception of refuse acid being directly under his office; as he has much bullion at all times in his office, and in order to save every particle, a new one was deemed necessary. With these exceptions, and the purchase of three desks for clerks, (some of whom, when I entered, were using the counters without desks,) no other furniture has been purchased. The fixtures were refining houses, which, although expensive, could not be dispensed with.

With regard to the bill of carpentry, receipted by A. Snyder, I have to say that he is not a relative of our treasurer, and not even an acquaintance, but a regular working carpenter, who bid for the building of the new weigh-room for the assayer, and, being the lowest bidder, was accepted.

With reference to labor charged, I would state that, in consequence of being obliged to purchase (at times) coals, salt, and other articles in large quantities, all of which has to be taken to the warehouse, I have had to employ men to do the work of storing, &c., and, also, when coal has been delivered at the mint, I have to employ extra men.

As regards the credit for articles sold, I would say that there has been nothing sold except a lot of old lead and iron since I have been in office, and that will be found credited in our ordinary account in June last.

With regard to stationery being supplied in large quantities, I have to say that it is now bought by me for the whole institution, instead of, as heretofore, being purchased by each officer; and as to the prices, I have watched them closely, and they are as low as can be had in the city. As to the charge for books, I would here remark, that the director of the mint forwarded a large supply at the opening of this branch, all of which are now about used up, and we are obliged to replace them here; the prices are as low as they can be done in the city. And, in conclusion, I would say that, with regard to the incidental and contingent expenses generally, Mr. Browne has been for the past few days examining the vouchers at this branch, and will advise you fully on the subject.

I have the honor to remain, your obedient servant,

P. LOTT,
Superintendent U. S. Branch Mint, Cal.

Hon. James Guthrie,
Secretary of the Treasury, Washington, D. C.