The Secretary read the following communication: DEPT or Snrii. WASHINGTON, April 25.1866. Sin: In reply to your letter of the 23d instant. I have the honor to state that the proposed sectionwas doubtless drawn up with the commendableand very desirable object of preventing any consular ofilcer from recciving an undue amount of compensation fromhis fees. Nevertheless. I am of opinion that laws already existing furnish ample safeguardsagainst the apprehended inconveniences while they are not liable to someof the objections which seem to me to lie against the proposition now presented. Those objections are: 1. The proposed section requires a certain class of consular odicers toreport their fees to the SecyTreasury instead of as at present.to the SecyState.by whom they are submitted to conrcss and to the President. As the Dept of State is charged with the appointment, direction, supervision, and removal of these officers. it would seemto be essentialto a proper discharge of its functions that they should report to it. 2. The proposed section appears to have been drawn up under the erroneous imrcssmnthat all the fees received constitute a mere y personal compensation to the consular agent receiving them. It is tobecon sidered that out of these fees are also to be paid the Office rent, clerk hire and all othe r expenses in curred in the performance of the services for which the fees are exacted. It isnlsoto berememberedthat section 15 of the act of August 18, 1&56, provides that “ evory consular agent shull be eanltrietnleddy. As compensationfor his services.to such fees ashe mayco lect in pursuanceof the provisionsof this act, orso muchthereof as shall bedeterminedbythePros ident: and the principal Officer of the consulate or commercial agencywithin the limits of which such consular u out shall be appoiiited shall be entitled to the resi no, if any. in addition to any other compensation allowed iim by this act for his services therein." Inasmuch as the dutiesiind laborsof every such consul are proportionately increased by every such agenc over which he has supervision and for whoseacts O is responsible.to abrogatethis portion of the act. as this proposition seemsto contemplate, would be to require the consul in sugh case sto assume additional labors and responsibilitigs.attended probably by increased expenses.for which he is to receive no compensation, or else to discourage the appointment of agencies which the growth of American trade in his district really demands. allies and prices. as well as the duties responsibilitics, and expendituresof consular officcis. vary so greatly in different parts of the worldthat a n ni form limit of 82.000would be, in difiersnt localitzol of very unequal value in some.too little. in others too great and in others.(after the usual deductions abovementionedare made.) would leave to the consularacent nocompensationwhatever. A limitation of the compensation of consuls and commercial agents to a fixed and equalsuiu at all posts, isnotin accords once with previous legislation upon thesamosubicct. which seemsto have been intended to graduate the compensation according to the amount of labor. the amount of responsibility, and the amount of expend iture die" required at each post. 4. The President has the power, and it has usually beenthepractice of the Dept to reeommepd its exercise.to nominate and appoint. hp and with the advice and consent of the Senate. ull consuls responsible directly to this Dept. (With such compensatiopase ontirezaImay decideto be suitable for the particular place in question) to all places where the increaseof businessseems to warrant it. instead of continuing subordinate consular agi nts. who are responsible only to the consuls by whom they were appointed. It can hardly be deemednecessarytoguard against any neglecton the part of the executiveDept to take such action, for the amount of the fees procoived at every port is, as beforcstated.duly submit ted to Congressand printed every year. showmg precisIeflyWheresuch changesare needed. under the presentsystemany consular offioer is.likely to receive too much compensationfor his sor glues, the true remedy would seem to be either to iminish the amount of the feesexactedor else give, himafixedsnlnry. Compensationof all public officers of the U.S. isexpeetedto begraduatedeither according to work or according to time. The proposition in questiondoes not seemto carry out either of those objects.since it does not guaranty a fixed salary. but pays for a certain amount of work and then requires an additional amount to be perlorined without any av at all. 5. It would also seemto make it the interest of consular agontstodise ourageconsularbusinessw hen ever it exceeds a certain amount, whereas it is for the advantageofrevenue and of trade that all such business should be performed promptly. wtllingly, anIdt elicetually. I is not deemed necessaryor expedient therefore, to recommenda chance in the present system. That it works justly to the Government and the consular ofioers is best shown by the fact that, as at present administered the consular service has been for the paissitiotrhyrlesetyeeaadrilsy, anand forgtrhaodfiurasltlytimreeaic itnhge national where it will soon becomea self supporting system. pain; all its own expenses. he amount paid for compensationof consuls and commercial agentsduring the last. 4 fiscal years. vmud the amount 0! fees received.during the some years. are asfollpws: Amountof salaries and loss in exchangefrom Janu ary 1, 1861t, o Jan 30.1862. "$432.143). ) an: 1. 37104 Difference. “$96, 76975 1802. Amount.of salaries and loss in exchange for fiscal year ending June 30, 1863. 37 1. 152.98294 Difference. “252.41?43 1863. Amount of salaries and loss in exchange for fiscal year ending June 30, 836357990 Fees 254.21834 Difference. SlTtlbol 1864. Amount of salaries and loss in exchange for fiscal year ending June 30.1865. 8353.7061 cos. 257.1 00 differenco. $1. G 4 Amount paid from U.S. Treasury for year ending June,865. From this deduct list of consulates atwhich the salaries have beenreduced and discontinued, at averagerate of returns for last fiscal year and there is a further reduction ofamount required to paycon sular salaries of. 54.38779 Leaving an apparent deficitof. 817.26585 It is not doubtedthat the increaseof fees at some vpoints and the reduction of science at others which are already taken place during the present fiscal syyesatre, wmill. at its termination. showthat the (insular I! now practically self supporting. at it is doubtful whet ier the proposed change would not weaken its efficiency and t us again make it. a drain “n were“. avo O user 0sr our 0ion servnn, within it. SEWARD. Hon. WiLLun P. Feesizsnm, Chairmano f ComFinance. U.S.Senate.