Mr. SPRAGUE. Mr. President, itisknown to the Senate that I am opposed to the object designed to be accomplished in the passage of this bill. I endeavored upon a former occasion to state my objections to it somewhat at length, and l have since reflected upon the measure and evil tendencies and consequences to which the interests of the country will be subjected if the bill is permitted to become a law. With the view ot a most thorough investigation of the subject, or as thorough as my ability would permit, I have gone back to the views of those who framed the Constitution and assisted in bringing the nation into birth. I have been among those who have thought well and deeply upon all questions connected with the industryof the people, and I design to read a portion of the adress of the congress of the U.S. of 1778 on this subject. It is pertinent now, and the people of the country and the Legislature of the country may look wisely to the suggestions and advice that that address contains. It says: “ Refrain a little whilofrom purchasingthesethings which are not absolutely n ecessnrtyh, at sothosewho have engrossed commodities may suficr, as theyde servedly will. the loss of their ill gotten gains by reasonof their commerce With foreign nations." Thus spoke the Congress of 1778, and further that same Congress in 1779, with regard to monopolies, said: “ It isouropinion that taxcsjndiciously laid onsuch articles us becomethe object of the enzrosscrs, and those frequentlycollected.would operateagainst the pernicious tendenciesof such practices." I have endeavored to show, and I have certainly convinced myself if I have not been able to convince others, that the etfect of the measurecalled the bonded warehouse system is to engross commodities, that speculation may be made therefrom. The Government and the importer join hands to engross commodities out of the markets of the people, so that when the rates of prices are of a character to suit the profits that they design to obtain, those commodities may be launched upon the market. Sir, if those who desire to recall to our minds the works and the acts of the early fathers, will go with me and will study their acts, they cannot but believe with me that the doctrines of this bill are pernicious and should not be made a part of the American system. As I progress in the investigation of this subject I discover new ideas. I discover that it is not as it seems to be. I discover that the law when it was 1st enacted established a certain system, and after it had been in effect for a time decisions of the Treasury Dept or acts of Congress were obtained which changed the intent entirely of the original projectors of the system. This bonded warehouse system is understood generally. I believe, by the people to be a system of store houses in the possession of the Government where the goods are entered, kept in the iossession of the Government in their boude warehouses, and under their control, subject to their direction; butsuchis notthe fact. The bonded warehouse may be the counting house or the office or the store of the importer. The goods are in his possession, and he as simply to givetothe Government a bond that when his goods are entered for consumption he will pay the duties prescribed by law. such, I believe, is the fact, that the Government for a piece of aper, upon which may be the name of unybo y that may be accepted by the officials of the customhouse Dept in any city or in any town where there is a customhouse, parts with its property. In case of fire those goods of course are neverentered upon the mar Eet, and the consequence is that so much of revenue is lost to the Government. You not only are speculators, you not onlyjoin partner ship with the importer for the introduction of commodities into consumption, but you insure the commodities to the importer. You are thus a great insurance agency. You firsilielp to buy the article, then you insure the sum that the duty amounts to. I do not believe that the working of this system is general] understood by legislators and by those who direct public acts of legislation and by the country. One reason why I have brought this subject to the attention of the Senate and the country is because of the flooding of the desks of senators with articles directed against the Ameri can system and the industry of the people. It is necessary that there should be counter statements made, and where better than in the congress of the nation? I cannot expect either to attract the attention of Senators by eloquence or by rhetoric, but I do desire to convince them by the convictions that are within me. It has been said that my course in regard to this matter will prejudice the American system, will prejudice the industrial interests of the country as applied to import duties. Sir, ifthat great system stands upon no firmer foundation than that any portion of it could be in any way affected by a poor advocacy ofit, then it ought never to exist. I am sure that it has merits of its own, that however poor the advocacy it will not affect its ultimate success, and the ultimate good that the people of this country will receive from it. If such ideas are to be used as a threat, threats are the mother of fear, and if fear has taken possession of the opponents of those who advocate this system, I have nothing to say to them. They are in the position that I designed they should be. Fear is not on the side that I advocate. We are strong because we know that the system that we desire to have perpetuated in the legislation of the U.S. has resulted in prosperity, and it will result in the strength of the American people and of the American nation. The able Senfrom Maine [Mr. Fssssn DEN] has distinguished me by the suggestion that, perhaps, the working of the system is as I have on eavored to show. If such is the fact, if I have proved the assertions that I have made, ifI have convinced him, I am proud of the action that I have taken. The Senfrom Ohio [Mr. Susanna] is disposed to think that it may be so also, but he thinks this system has become soingrafted into the trade and into practices of the people that it may be dif ficult to uproot it. Sir, wherever there is a system that is detrimental to the interests of the people, detrimental to the interests of trade and of commerce, detrimental to the interest of any bill or measure before the body, it is the duty of those that understand it to stand firmly and fearlessly in the advocacy of measures that will promote different results. Sir, this measure is endeavoring to aid commerce with foreign nations. Let us see for a moment the figures as applied to this question. Let us for a moment compare the revenue as derived from custom duties and those derived from internalrevenues. In 1865 the value of dutiable goods, wares, and merchandise imported amounted to $183, 304, 407. The cus toms or duties from them amounted to $80, 036, 238. The total value of goods, wares, and merchandise not liable in duty was $61, 120, 700. In 1865 the amount received from internalrevenue was $211, 120, 521) 17. The business that reduced that revenue, as near as I can calculate it, would amount to $3, 500,000,000. The amount of businessthat produced from imports a revenue of $80, 035, 238, is $183, 304, 467. You propose to foster a business of $183, 304, 467 at the expense and to the deiment of a business of ss, sou, The advocates of this bill suggest that the object to be attained is, that there may be duties collected in the portsotthe U.S. on goods that may be withdrawn by ships and people of foreign nations engaged in trade. I 0w, sir, let us see to what extent that eat object is designed to be accomplished. Here is a letter from the Asst Register of the Treasury giving the exact figures on this subject, which I will read: Treasury DEPT. Rsoisrnas Orr ion. wASUINGTOS.lrbruarufi, 1866. Six: In accordancewith your request. I have the honor to state that the importations during the fis cul year ending June 30, 1845, were as follows: free, $51, 081,532d:utiable, $183, 213, 27t8otal. $34, 315, 810. Entered for exortation from warehouse durin: same period, value utiable. 59.978.5S7B4. Very respectfully, your obedient servnn J.AAn.irGtuRnAlReAgMis.ter. For the purpose of having about ten millions of value O goods in bond, the Government of the U.S. are made to join hands with traders, with insurance agents, with specula tors, who compete with the industry of the people of this country in every Dept of industry. The Senfrom California, and no one respects him or his State more than I, designs to create for the city of SanFranciseo a great mart for commerce, renter than London or NewYork. I honor imfor that disposition. One would know that he would follow in that track, and that he would foster any enterprise, any State, or any people with whom he was identified. I have yet to learn that his actions and his votes have not awider aim, and I have yet to see that his interests and his energies are not devoted to the interests and prosperity of our common count. But, sir, he inay, liko other men, he mistaken in the plans that he would carry into elfect in carrying out this de sign. California to be a great State must be great other than by her mines of gold or silver. She must develop her agricultural resources: she must develop her manufacturing interests. She can never expect to be agreat agricultural State until she also becomes a great manufac turing State, for the markets that the manufacturers open to the agriculturists are not only necessary but essential to the increase of the products of the agriculturists. As it is in the older States, so it must be in the new; and he will do well to direct the people of his State so that all the peeple, both miners and traders and inhabitants of all kinds may have varied occupations as in the older States. so that every member of the family may find remunerative emplyment. Until he can employ his whole people, from the children to the old men. California cannot be prosperous like those States that pursue that course with their population.