TOE DAILY EVENING TELEGRAPH PHILADELPHIA, TUESDAY, DECEMBER 7, 18C9:
THE FINANCES.
Annual Report of the Secretary of the
Treasury The Doings and Condi
tion of the Department Our
Banking System.
TitSAHCRT Pki'aktmknt, December 6, 1!!). I
have the honor to submit herewith the annual re
portof the doings and condition of tlio Treasury
Department. In this report I naturally treat first
of matters of administration and then measures of
public policy. The officers in charge of tho various
bureaus and divisions of the Treasury Department
have faithfully performed their duties, and I com
mend their several reports to the consideration of
Congress.
The Treasurer of the United States lias prepared
ftnelaborato report, setting forth tho present con
dition of the Treasury, and furnishing a rcavmc of
the business of the Treasurer's ofllee from 1S01 to
the present time. The long and faithful services
of the present Treasurer entitle him to the grati
tude of the country. The report of tho Commis
sioner of Internal Revenue is respectfully com
mpjlfled to the attention of Congress. Since the
appointment of the present Commissioner tho ad
ministration of the oillee lias been constantly im
proving. The increase of receipts for tho first five months
of the present fiscal year in the sum of $14,4.'il,:i (W
over the amount collected In the first five months
of the Uyit fiscal year, is satisfactory testimony to
tho ability and Integrity of the persons employed
IS that branch of the public service.
The amount paid by warrants for collecting tho
revenue from customs during the fiscal year end
ing June SO, WH, was 8U78..'lsV4;i. and for the year
ending .Tune 30, isiiii, ir.37o,738T3, showing a de
crease of $1,001,17,3(). This decrease in the cost of
collecting the revenue has not becu attended by any
loss of efficiency in the service. On the other
hand, It is believed tliat the means for tho dotee
tion of smuggling are better than ever before, and
that the Custom Ilouso service is also constantly
improving. ,
It ought to be understood that the chief means
of collecting the revenue and enforcing the reve
nue laws, must be found in tho administration of
the Appraisers' Department. The frauds and
losses arising from aetual smuggling are unim-
Iiortant when compared with the losses sustained
hrough incompetent and dishonest examiners and
appraisers.
Assuming that honest men may be obtained for
these important positions at tho present salaries,
it is yet true that an incompetent appraiser or ex
aminer may daily subject the Government to
losses far exceeding his annual salary. Under ex
isting laws certain revenue officers and other per
sons appearing as informers, arc entitled to shares
in fines, penalties and forfeitures. During t ho
fiscal year 18i8-G'J tho Treasury Department dis
tributcd the sum of 8-H(i,07:i Ol to such olilcers and
to informers, In the various cases arising under
the customs revenue laws, and a large additional
sum was also paid through the internal revenue
office.
The reasons on which the laws granting such al
lowances are based is that olilcers of the Govern
mcnt are stimulated to greater activity in the dis
covery of frauds and in bringing offenders to pun
ishment. There can be no doubt that such is the
effect of the policv, but the experience I have had
in tho Treasury Department lias convinced mo
that the evils attending the system are greater
than tho benefits derived from it. It often occurs
that revenue officers are led to assert claims in be
half of the Government, which have no just foun
dation in law or in the facts of the respective
Cases, and where real claims exist it is often tho
object of the informers and onicers, who share In
the penalties, to misrepresent tlie case to tlio De-
fiartment so as to secure the greatest advantage to
licinsdvQS
But a more serious evil is found In the practice,
quite general.of allowing persons to pursue a fraud
ulent course, until a result is reached, which will
inure to the benefit of the olilcers and informers in
stead of checking criminal practices at the outset.
It is impossible to set forth in exact language the
Character of tho evils that grow out of the present
System. I am, however, clearly of the opinion that
the Government ought to rely upon public olhcers
for the proper performance of their duties, without
stimulating them by any contingent advantages. I
have elsewhere recommended an increase of the
salaries of Custom House olilcers, and the abolition
of the system of giving to them a share of lines,
penalties and forfeitures, will be an additional rea
son for the increase of salaries in this department
Of the public service
It has become a practice for clerks and other per
sons who have held office in tho Treasury Depart
ment, to accept employment as agents for attor
neys for parties having claims against the depart
ment, and there is reason to believe that in some
instances the information obtained while in the
public service has been used in aid of the claimants.
Without detailing all the objections to this prac
tice I respectfully suggest that a law bo passed
barring persons from practicing before tho Trea
sury Department as agents or attorneys in behalf
of claims that were pendiug when such persons
were olilcers of the Department. In March last
there were employed in the Treasury Department,
at Washington, 2S18 clerks, messengers and la
borers, at a monthly cost of 8285,021-51. At present,
the whole number of such employees Is 2141, and
their monthly pay amounts to silsJMO-M, showing
a decrease of expenses at the rate of 8")71,0S8 O4 per
annum. .
It was found necessary, however, during the
period mentioned, to Increase the force in the In
ternal Revenue office and in tho office of the Pirst
Comptroller. This increase in the aggregate Is at
the rate of 880,440 per annum. Tjns statement
does not relate to the force employed in tiie
bureau of engraving and printing. In March
last there were sixty-two special agents in the
service of the department, receiving, in the ag
gregate, for their services, the sum of $371'1U per
' day. Kacli of these agents made his reports to the
, department, and acted under its direct orders.
The number at present employed is fifty-four, and
their daily pay amounts to ftttis ai.
- The pay of the agents has been increased gone
. rally, In the hone that more efficient services might
. be obtained. The eta coast and frontiers of the
.:' country have been divided into sixteen special
agency districts, and a superintendent appointed
' for each. Assistants have been appointed and de
tailed to act under the several district agents. The
-orders of the department are, in all cases, sent to
the agent in charge of the district, and the report
of hU assistants are made to him. The agent is
required to make a monthly report of his own
doings, and of the doings of his subordinates. The
results thus far obtained seem to justify tho or
ganization Introduced.
Arrangements have been made for the manu
facture of paper for the currency and other obli
gations of tho United States, and tor the printing
of the same, which increase the security of the
Government against unlawful issues from the
genuine plates. Under tho eleventh section of an
act approved June 30, 114, entitled "An act to
provido ways and means for the support of the
Government and for other purposes," a peculiar
paper has been designated as tho Government
paper, aud by that act it is made a felony for any
person to have or retain in his possession any
similar paper, adapted to the making of any obli
gation or security of the United States, except
under the authority of the Secretary of the Trea
sury, or some other proper officer of tho United
tttates.
Arrangements have been made for the manufac-
ture of this paper by Messrs. Wilcox it Co., near
Philadelphia, and the mills owned by them, which
are exclusively devoted to this purpose, have been
placed under the supervision of the olilcers of the
Government, and such precautions have been
taken for the custody of portions of the machinery
, as to render it improbable that the paper manufae
. tured can be obtained by dishonest means, it is
received by an agent of the Government stationed
at the mills, aud upon the requisitions of the De
partment, it is shipped to the National Hank Note
' Company, the American Hank Note Company, or
to the Printing JSureau of the Treasury Depart
ment, as the case may require.
Arrangements have also been made with each of
the two companies mentioned for preparing ono
set of plates for every issue of currency or other
obligation. The engraving and printing bureau at
Washington prepares a third set, and each ofllee
S laces an Imprint upon every obligation of the
overnment. Notice of the transmission of paper
rom the agent at the mills, and its receipt by each
of the several officers of the deliveries therefrom
to the sealing bureau in the Treasury Department,
aud also of deliveries to the Treasurer of the
United States, is given each day by telegram or by
letter, aud on the following day the accountants
in the Treasury Department prepare a statement
showing the disposition of every sheet of paper
manufactured.
lu the month of November the paper at the mill
and In each of the several printing establishment
was carefully counted, and the result compared
with tho accounts in tho Treasury Department
Ju an aggregate of about 7,00L',(JO0 of sheets received
by the agent at the mills discrepancies were found
to the extent of sixty sheets of fractional currency
paper, and for the money value of w hich tho com
panies doing the work are responsible, it is be
lieved that these arrangements furnish better se
curity thau has heretofore existed against tho
fraudulent Issue of currency or other obligations of
the Government by the use i.f the original dies or
plates, and the system of frequent examinations of
(he several establishments Intrusted with the work
wilt disclose at once any discrepancies In the ac
count. It Is not probable that the changes made will di
minish the expense. Indeed, the cost Is greater
than It would he it the work in all Its branches
were done in the Treasury Department. In my
Judgment, however, the additional security is of
more consequence to the Government than the
mere economy of money in tho expense of on
graving and printing.
Tho marine hospital service of tho country Is,
upon tho whole, In an unsatisfactory condition.
Several hospitals have been erected at points
where, at present, they are not needed, while tho
great commercial cities of New York, Philadel
phia and Baltimore have no hospital accommoda
tions for sick and disabled seamen.
During the past season a careful examination of
these Institutions has been mado by Dr. Stewart,
an agent of the Treasury Department, and by Dr.
Billings, of the United States Armv. The result of
their examination is that several hospitals have
not been properly managed ; that others should bo
closed, and that hospitals should be erected at New
oik, Baltimoro and Philadelphia. Measures have
already been taken for the sale of the hospitals at
several places where they are not needed. The
hospital at New Orleans is represented as un
suitable from bad location and other circumstances.
The War Department is In possession of suitablo
hospitals at New Orleans and New York, which a
I am informed are no longer needed for the use of
the army, I respectfully recommend that they be
transferred to the Treasury Department.
The revenue marine system is an important and
expensive branch of the customs revenuo service.
There aro thirty-six vessels belonging to the
department, of which twelve are sailing ves
sels, and twenty-four are steamers. They vary
in size from 40 to 480 tons. One hundred anil
seventy-three olilcers and twenty-four men
aro required to man these vessels, and their
running expenses amount to about $H65,mjO a yoar.
Uive of these vessels, side-wheel steamers of 480
tons burden, are hike steamers, and out of com
mission. They are rapidly diminishing In value,
while the care of them involves an annual exponse
of about 870,000.
The vessels now In theservlce have been purchased
and built at various times, and, as far as lean as
certain, without special reference to the nature of
the duty to be performed, and certainly without
any matured plan. From one-half to three-fourths
of the whole number are not adapted to the busi
ness. Congress recently appropriated 8:100,000 for
the construction of four additional vessels.and pro
posals were issued and bids received under the au
thority thus conferred upon the Secretary of the
Treasury, but no contracts have yet been made. An
examinat ion of t lie subject lias forced the conviction
upon me that it is inexpedient to incur the expen
diture until t ho department is in possession of
more accurate mid complete Information.
1 shall, therefore, take tho opinion of a board of
competent olilcers upon the following points:
l'irst. The size and character of vessels required
by the nature of tho service that they are to per
form. Secondly. Whether they should be constructed
of iron or wood, or of a combination of these ma
terials. When the report of the commission shall have
been received proposals will be issued for the con
struction of four vessels as authorized.
In addition to the parent mint at I'hiladelpliia,
six branch mints have been established at various
times in different parts of the country one at San
Francisco, one at New Orleans, one at Charlotte,
N. C, one at Dahlonega, Ga., one at Denver, Colo
rado, and one at Portland. regon.
Since the commencement of the war the branches
at New Orleans, Dahlonega and Charlotte have
been closed. An assay ollice, it is believed,- will
satisfy the necessities of the mining interests in
Colorado, aud for the present only a limited business
will be done at tho Portland mint. Indeed, with
the construction of railroads and tho consequently
increasing facilities for conwiiunieation. I am of
opinion that tho business of coining will be chielly
at one mint upon the Pacific, and at one mint upon
tho Atlantic coast.
Under an act of Congress, passed July 2:i, 1S0U,
preparations are making for the sale of tho mints
at Charlotte, N. C, and Dahlonega. Tho mining
and coining of the precious metals is now so largo
a national interest that it deserves more attention
than it has hitherto received. At present there is
no bureau or officer in the Treasury Department
at Washington, charged specially with the manage
ment of this great interest. 1, therefore, recom
mend that provision be made for the appointment
of a proper officer to be intrusted with this branch
of the public business, under the direction of the
Secretary of the Treasury.
Tho coinage of the country is diminished in
amount by the fact that in England and France
the mint expenses are much less than with us. It
would, no doubt, have a tendency to prevent the
export of the precious metals in the form of bul
lion, as the mint charges were to bo reduced or
altogether abolished. A n agreement was made on
the 11th of February. lSti'.i, between tho Secretary
of the Treasury, on behalf of the United States,
and certain parties in California, leasing a lot of
land in San Francisco, known as the Custom
House block, for the period of twenty-live years.
This lease is subject to the condition that it shall
be void if Congress, on or before the 1st day of
January, 1870, shall take adverse action In refer
ence thereto.
In the view of the fact that the lease Is for a long
period of time, and being of the opinion that the
Government should retain control of property that
may be needed for public purposes, I think it ex
pedient for Congress to annul the lease.
Considerable progress has beeu made upon the
foundations of the Post Oilice building in the city
of New York, and of the Post Ollice and independ
ent Treasury building in the city of Boston. The
supervisory architect of the Treasury Department
is of the opinion that the wall and roofs of the
buildings may be completed during tlie next year,
if sufficient appropriations are furnished. Tlie
works having been undertaken, 1 am of opinion
that it is economical to make the necessary ap
propriations for their speedy completion.
During tlie month of December the department
will be prepared to submit a report upon tlie con
dition of our commercial marine. That report will
show that the navigation interest of tlie country
has not recovered from tlie losses sustained dur
ing the war, and also that efficient measures are
necessary for its restoration. I cannot omit tocall
tlie attention of Congress to the inadequacy of tlie
salaries paid to officers in the Treasury Depart
ment who exercise discretion, and whose acts bind
tlie Government, or affect directly Itsexpeuditures
or revenues. Some of the salaries were fixed when
the Government was organized, others when new
officers were added, and nut fewof them have been
increased recently.
11 Is unquestionably true that persons having
equal ability and clothed with similar responsibil
ity, receive much larger compensation from indivi
duals and corporations, aud although many of tlie
olilcers now in the public service are likely to eon
Untie, from tlie circumstance that their vocation
lias led them aside from the ordinary channels of
business, yet as an act of justice to them, and in the
interest of the Government, 1 earnestly recommend
an increase of their pav.
Speaking generally, this increase of pay should
be extended to revenue olilcers in the customs ser
vice, such ns collectors, surveyors, naval officers,
and especially to appraisers and examiners in tho
Appraisers' Department.
should the recommendation to repeal the laws
granting shares of penalties, fines and forfeitures
to public olhcers be adopted, it will be necessary to
Increase the salaries of collectors, naval olilcers
and surveyors at all tlie principal ports of the
country. It is a plain truth that tho Government
lias no right to expect tlie services of competent
men as appraisers and examiners at the present in
adequate salaries. In the larger cities thov are
insuilieicut for the support of a family, and under
such circumstances the Government Is not without
responsibility when it places Its olilcers in such a
position that they are compelled to choose between
dishonesty on the one hand and penury on the
other.
Tlie salaries of tlie Assistant Treasurers and their
principal olilcers should also lie increased, for sub
stantially the same reasons, it has been found im
possible for the last few years to retain tlie services
of tlie most efficient clerks in the Treasury Depart
ment, except by auditions to their lawful salaries
through an appropriation placed in the hands of
the Secretary for th it purpo-e. The distribution
of this appropriation is an unpleasant duty for the
Secretin y, and cannot bo performed without pro
ducing jealousies aud discontents among the
olilcers of tlie Department.
Speaking generally It may be said that tho heads
of bureaus, chief clerks and clerks in charge of
divisions are inadequately compensated for tlie
services they pcrlorm. 'the routine business of
the department can be performed in a satisfactory
ir.anner by clerks receiving tlie compensation now
provided by law, but men, on w hose judgment and
discretion tlie Government relies for the proper
transaction of tho business of tlie country, and
whose labors are not limited to the ordinary hours
of duty, should be mado to feel that they are
properly compensated. There are two changes in
the organization of tlie Treasury Department
which I consider important.
The first change to which I refer, Is the creation
of a chief comptroller of the Treasury, wtio shall
be authorized to control the system of accounting
by the several auditors and comptrollers, and to
whom all appeals shall be made" upon questions
arising in the accounting olilcers of tho Treasury.
The creation of this ofllee, clothed with tlie powers
indicated, will give uniformity to tlie accounting
system, and, 1 trust, will be in the power of the officer
appointed to simplify tlio system and materially
reduce tlie expenses of the Department in this par
ticular. The second change to'whlch I call attention Is In
my opinion even more important. At present there
are eight divisions lu tlio secretary's ollloe, whoso
duties are connected exclusively with the customs
revenue system. There is no person, except the
Secretary of the Treasury, who Is by law autho
rized to pass finally or, In any way, authoritatively
upon questions arising In tho administration of tlio
customs revenue laws. At the present time the
revenue from customs Is as largo a the revenue
from tlio exeiso system. The number of men
employed and the field of Its operations aro nearly
a great. It is Impossible for tho Secretary of the
Treasury to give to tho variousqiiestions that arlso
in tho administration of thesvstetn that attention
whlen Is essential to the service.
The duties of superintending the collection of
the customs revenue are so varied, delicate and
important a to Justify and require the exclusive
attention of tlie most competent person whose
services can be obtained. Tho experience of tlie
present year in the administration of tlie Internal
revenue system, and tho collection of tho exeiso
tax. Justifies tho opinion that tho establishment
of the office of Commissioner of Custom K-venue.
corresponding in power ami position to that of
the ollice of Commissioner of Internal Revenue,
and tlie appointment of a comment commis
sioner, would render tlie execution of tlio custom
revenuo laws much more etllclent and harino
nious, while the revenue would probably le In
creased to the amount of many million of dollar
annually j nor I it probable that tlie expenses
would be materially greater.
Including interest earned and not paid, and de
ducting cash on hand, the debt of the (' nlled stale
on tlie first of March last wa t2.ri2-".4iit,2"0 ol. nnd
subject to tho mine condition. It wa $J,I Vl.Vi'.),.
t'&'Zlon tho first of the present month, showing a
decreaso of 871,00:i..r04 7. This apparant decreaso
of tlie public debt is less than tho actual decrease.
Considerable sums have been paid on account of war
and other old claims, not previously ascertained,
and, therefore, not included in any debt statement.
Tlie account of March 1, from the necessity of tho
case, included only tlie Interest accrued and not
then payable, but as a matter of fact tliero were
outstanding and overdue interest coupons, and
these several millions have since been paid out of
the ordinary revenue. Previous to March 1 no in
terest account had ever been kept with the several
loans. Such measures as were found practicable
have since been taacn to ascertain the exact con
dition of these accounts. Tlie bonds Issued by tho
United States in aid of railways, amounting to
IHi'J.tWvTJO, being in the nature of a loan, are not
included in the foregoing statement.
During tlie fiscal year ending June 30, lHtiO, thero
was an excess of receipts over expenditures, in.
eluding interest on the public debt, of 8l't,4"p:!,HO'4ii.
Of this excess 812,'.H2,:iiO-o;i, as nearly a can now
be ascertained, arose previous to March 1, and tlie
remainder, 8.Jj,4r0,77'.i'lM, between that tinio and
the 1st day of July. This excess was applied from
time to time to the purchase of 5-20 bonds, and the
excess of receipts since Julyl ha been used in
the same manner. These purchases amounted in
the aggregate on tho IJOth day of November, to
875,l7ii.K0t. A large part of the excess of receipts
was realized in coin. Sales of gold have been
made from time to time, and the proceeds ap
plied to the purchase of bonds.
With tlie exception of the sales of moderate
amounts of coin in Chicago, New Orleans, St.
I.ouis and Baltimore, for tlie payment of duties,
tlio sales of gold and the purchase of bonds have
been made uniformly through the agency of the
Assistant Treasurer at New York, ami without
any expense to tho Government, except the com
paratively small amount paid for advertising tlie
iiroposals. The average premium on gold sinco
darch 1 has been .'j2.81u per cent., and the average
premium paid for 'bonds has been 10 08-100 per
cent. Upon this basis of the sales ol .'gold and the
purchase of bonds, the average price paid for
bonds in coin has been ss CVluo per cent.
The act of February lstij, provided that the
coin received for duties upon imported goods
should be annually set apart as a sinking fund, to
the extent of one per centum of the entire debt of
the United Slates. In conformity with this re
quirement 1 have purchased bonds to the amount
of j: J i.o-l-l. si k i, and designated llieui as belonging to
the sinking fund. 'These purchases are as sub
stantial a compliance with the statute from tho
4th of March last. 1 have not felt myself authorized
or required to make any provision lor the time that
elapsed for the passage of the act and previous to
tlie commencement of the administration.
With the excess of means at my command, I
have purchased bonds in addition to those pur
chased for the sinking fund to tho amount of
&k,4;I2.000. These are held as a special fund sub
ject to tlie action of Congress, aud I respectfully
recommend that they be added to the sinking
fund, and that any future purchases that may be
made be so added unlit the gross amount shall
constitute a fund equal to that which would have
been created if there had been no delay in tlio
execution of the law. The depreciation of the
currency is due to twi causes: First, the exces
sive issue; and secondly, to the want of faith in
tlie Government, and the extent of the influeuco
of the first-named cause cannot bo ascertained
until the second is removed substantially.
Whenever our credit shall bo so much improved
at home and abroad that holders of our bond are
disposed to retain them, even when the public
mind is excited upon financial subjects, we shall
be able to judge inure accurately the extent of tho
over issue of paper money. It is also true that tlie
quantity of currency necessary for the transaction
of the business of tlie country cannot now be fixed
accurately. Since tlio close of tho war the wants
of the States of the South have Increased, and con
sequently a large amount of currency has bcon
withdrawn from other sections to supply tho de
mand there created.
The amount necessary for the purposes of the
South will steadily increase for tlie next two years.
Tlieponstructionof the Pacific Railroad is likely
to result in tlie substitution of paper for coin by
tlie people of the Pacific coast. It is probable that
the demand tor paper for that purpose will not be
less than thirty millions of dollars. As a conse
quence, a very large quantity of coin will be with
drawn from circulation, and thus practically tlie
coin will be increased upon the Atlantic coast, and
tlie paper in circulation in the States east of the
Rocky Mountains wilt be materially reduced.
Those changes will tend to diminish the difference
between paper and coin.
Tlie ability of the country to resume specie pay
ments will not bo due to our special legislation
upon the subject, but to the condition of its indus
tries and to its financial relations to other coun
tries. These, of course, will bo more or loss de
pendent upon the general policy of the Govern
ment. The war exhausted the country of its ma
terial wealth, and the States of the South were lite
rally impoverished. A necessary condition for the
resumption of specie payments was the develop
ment of the industries of the nation both South
aud North, and the consequent accumulation of
the movable products of industry to such an ex
tent that our exports of those products should bo
equal substantially to our imports.
So long as it is necessary to pay for merchandise
Imported by the transfer of Government bonds or
other evidences of indebtedness, to other countries,
so long It will be impracticable to resume and main
tain specie payments. When the products of in
dustry exported shall bo equal, substantially, to
the products of other countries imported, there
will be no demand for specio for export, except
what may arise from the circumstances that our
bonds held abroad are sent home, sold In our mar
kets and the proceeds exported in coin.
When the credit of tlie country shall be fully es
tablished in Europe, and there shall be no doubt
either of our ability or disposition to meet all our
obligations, bonus heretolore, and now to a large
extent held by merchants and bankers, will bo
transferred to capitalists for permanent invest
ment. When this change shall have taken place
the probability of our securities being sent home
under the influence of political or financial difficul
ties in Furope, will bo very slight, and when, as a
concurring fact, our exports, exclusive of public
securities, shall be equal to our imports, specie
payments may be resumed without even a tem
porary embarrassment to tlie business of the
country.
One of the most efficient nicaus of strengthening
the country lu Us financial relations witli other coun
tries is the development of our commercial, marine.
The returns show that a very large amount of the
foreign trade Is In Kugllsh hands.
We are not only thus dependent upon a rival
country for the performance ol the business which
should be in the hands of our own people, but our
ability to maintain specie puvmcuis Is materially
diminished. If tho eutire foreign trade of the
country, both of exports and Imports, were carried
on In American ships, the earnings would not be
less than seventy live millions of dollars a year. At
present the freights of the foreign trade iu American
ships do not exotiedjtwenty-eight millions of dollars.
Were the trade exclusively in American hands a
large part of this dlll'erence of forty-seven millions of
dollars would be due to citizens of the United States,
uinl puyuble in other countries. This amount would
be thus added to our ability to pay for goods Im
ported from those countries. If, for example, an
American citizen purchase in New York a thousand
barrels of flour for six thousand dolta.s, and export
It to Liverpool In an American vessel,
and It Is there sold fur seven thousand
dollurs, a bill of exchange may bo drawn against
the proceeds, and an Invoice of goods of the
value of seven thousand dollars, purchased lu Eng
land, entirely liquidated, although at the Custom
House at Mew ork there would be an apparent
balance against the country of one thousand dollars.
But if, on the other hand, the; thousand barrels of
Hour are exported in a British vessel, the proceeds
of the Hour realized in New York, and whlctt can be
applied to the payment of goods bought in England,
will be only six thousand dollars, and there will re-
main an actual balauoe against the country of a
thousand dollars.
'i'hls familiar example shows the Importance of
ro-estublit-hing our commercial supremacy upou h?
ocean. Aud I deem It therefore esijeija'tf 'country
prosperity that the sliipplug lut-" "
be fostered not only as a nursery for seaman, hot
also as an essential agency In enabling the Govern
ment t institute and maintain specio payments. It
ts an Interest also which In Its development Is as Im
portant to the states and people, remote from the
sea coast as It ts to the maritime sections. Kvery
addition to our facilities for the export of tho pro
ducts or the Interior Is as advantageous to the pro
ducers as to the merchants and shipbuilders of the
const.
While I do not anticipate that It will be necessary
to delay resumption nntll our proper commercial
position Is regained, I am satisOcd that tho develop
mentof tha navigation and slilp-huliding Interests
will Improve the credit aad rapidly augment the
wealth of the country. The suggestions mat I have
made Indicate my opinion that it will not be wise to
resume siwcle payments while so large a part of the
lnterest-'arlng debt of the country Is represented
by Flve-twenty bonds and held by Kuropean mer
chants, bankers, and manufacturer, questions
that have been raised In regard to the nature of tho
obligation assumed by the Government In the
Issue of Incite bond have undoubtedly deterred
n any persons from purchasing them as a permanent
Investment, nnd consequently they are largely
held In this country and In Kuropo for speculative
rurpodcs hy persons who nestgn to put them npon
he market whenener the advance shall furnish a
sufficient Inducement, or when political or financial
disturbances may rreute a demand for money for
other purposes It Is probable that from seven to
nine hundred millions of these bonds are now held
In Kurope, and to a consdlctablo extent by
persons who will dispose of them under
the influences to which 1 have referred. Such a
panic as existed In I'.urope In lsoo, at the opening of
the Austrian and Prussian war, would be likely to
Indnce the return of a sutllcient amount to this
eoiiDtry for sale to embarrass business, aud in case
of resumption to cause the suspension or banks. It
Is, therefore, lu my judgment essential that the
larger part of the Five-twenty bonds bo withdrawn,
and Unit other bonds be substituted In their place,
issued upon terms and conditions which will
admit of no doubt. In fine, the
practical question Is not merely the
resumption of sccle payments as a measure by
Itself, it Is not diilli'iilt, but tho problem Is to resume
under such circumstances that the position can be
maintained not only In times or tranquility, but also
lu periods of excitement and peril.
Our course, It seems to me, Is plain. Kvery mea
sure of the Government bearing upon the subject
should tend to appreciate the value or our paper
currency. It Is probable that some decreaso in the
volume or paper will ultimately be necessary. I
therefore respectfully suggest that the Secretary
or the Treasury tie clothed with authority to reduce
tlie circulation or l ulled states notes lu an amount
not exceeding two millions or dollars In any ono
mouth. Thus will the country lie brought, gradually
It may be and yet without disaster, into a condition
when the resumption or specie payments will be easy
If not unavoidable, On tUe 1st of December, isoti,
the principal or the public debt, or the t inted States,
not deducting bonds iui.1 cash on hand, amounted to
J2.oi5,2sO,7Mi-s2. or tins amount the sum or
$350,1 1.1,868-60 Is represented by I nited states notes
not bearing interest. The larger psrt or this is
needed for circulation, but the amount can ho re
duced from tho ordinary revenue of the country If
Congress Blind consider It expedient to make provi
sion for such reduction. The fractional currency in
circulation was $;is,8S51r,C4-os, ami there is no occa
sion for any leglHhtt ion in reference t o this Item of
the public debt. There were also outstanding certi
orates for gold deposited lu tlie Treasury to tho
amount or $:!0,ht;2,'.i4o. These certillcut.es aro
redcemublo on presentation. These three
items nuiour.t in tin: aggregate to
$l31,s01,7o;i-ls, and in making provision lor the pub
lic debt they are not necessarily to ho considered.
Of the loan or January 1. ls,d, tlio sum or $i,uJ2,
Ono is outstanding and payable on the 1st of Janu
ary, 1S71. Tlie loan or srs, or twenty million dol
lars, Is pnyable In is:a. The bonds known as ten
forty bonds, amounting to jHU,M',:in), are not pay
able until 1874. The six per cent, bonds pay
able in InsI amount to $2s;i,t77,sjo. As tlio
bonds Known as eighty-ones and ten-forties,
amounting In the aggregate to $;i,iU 1,'JOo, aro not
due and cannot be paid previous to Is74 and lsM, It
is unnecessary to consider them la making provision
for a new loan. The Klve-twenty bonds, amounting
In the aggregate to $1,0112,071,100, are either due or
will soon become due, and it Is to this class of the
public, debt and to this class alone that attention
should be directed.
or this amount the sum of $75,447,800 has been
purchased since March last, and tho
ponds are now held by the Gov
ernment. Before any measure lor funding tho
five-twenty bonds can lie consummated the Govern
ment will be able to purchase at least seventy-live
million dollars more. Toere will then remain on the
first of July next ubotit $ l, 450,000, out) of the tire
twenty bonds In tho hands or tho public creditors.
Of the entire lndcbionucss of the I nited States only
tlie unimportant sum or tyvent.y-scvcn million dol
lars will be due aud payable previous to lsT4.
Under these circumstances It does not seem to mo
to lie wise to authorize the funding or the whole
amount of the five-twenty bonds which, as Is now
anticipated, will be outstanding on the 1st of July
next; butttiU $2RO,ooo,ooo at least should bo suf
fered to remain, either for purchase or redemption
previous to 1st I. Should the sum of $260,ooo,K)i) be
left for that purpose, the entire public
debt will be in a condition to
be easily redeemed. Between is" 4 anil lssi the
ten-forty bonds could be paid, and provision also
made for the redemption of the bonds which will
become due In the year 1881. it may be wise to re
duce the proposed loan to l, 000,000,000. which would
then leave for payment previous to 1881 the sum of
about $070,000,000, or hardly more than 60,oo ),ooo a
year. Assuming that the proposed loan will be for
an amount nut exceeding $l,200,ooo,ouo, I recom
mend that It be oll'ered In three classes of
t4(JO,uoo,0(JO each. The first class or $400,000000
to be payable in fifteen years and to be paid In
twenty years, Tho second class of 400,000,000 dol
lars to be payable In twenty years and to lie paid in
twenty-five years. The third class of 400,000,000 dol
lars to be payable in twenty-live years and to be
paid in thirty years. Tlie essential conditions of the
new loan appear to me to be these:
First. That the principal and interest shall be
made payable in coin.
Second. That tho bonds known as live-twenty
iionds shall be received In exchange for the new
bonds.
Third. That the principal be payable
this in this country and the Interest payable
either iu the United States or in Europe, ns the sub
scribers to the loan may deilre.
Fourth. That the rate of Interest shall not exceed
4X per cent, per annum.
Fiftn. That the subscribers In Europe shall receive
their interest at London, Paris, Berlin, or Frankfort,
as they may elect.
Sixth. That the loans, both principal and Interest,
shall be free from all taxes, deductions, or abate
ments of any sort, unless it shall be thought wise to
subje ct citizens of tlio United States to such tax
upon income from ' bonds as is imposed
by the laws of the I nited States
upon incomes derived from Investments.
Tt.ere are two reasons, end each seems to me to be
a controlling reason, why the bonds of the United
States should be exempt from State and local taxes.
If not so exempt, the amount or the taxes Imposed
by the local authorities will be added to the interest
the Government will be required to pay, ami thus
the national Government will be compelled to pro
vide for taxes Imposed by the local authorities.
Secondly, inasmuch as the ability to borrow may,
under some circumstances, be essential to the pre
servation of the Government, the power should not
even in times of peace and prosperity be quail
lied by onv concession to the States of
the right to tax'the means by which tho National
Government Is maintained. The right to use its
lawful powers, free or auy,cnnditlou, restriction or
clulm of another. Is an essential condition of sove
reignty and the National Government should never
Bui render or qualify Its power in tins particular. In
orltring the new loan, citizens ami subjects of other
governments should receive the strongest assurance
that the Interest aid principal aie to be paid In coin,
according to the terms ol the bonds issued, witiiout
deduction or abatement whatsoever.
In order to avoid the necessity of employing
ageMs for the negotiation of the loan, 1
respectfully recommend that a liberal commission
be allowed to subscribers, and that those who first
subscribe be permitted to select the class of bonds
in which their subscriptions respectively shall be
made. I further reuommend, lu connection with the
proposed loan, that the banks established under "the
act 10 provide a national currency,'' be required to
substitute tlie bonds that may be issued under the
proposed loan act for those now deposited as secu
rity tor the redemption or their bills, should any
bank be unwilling to accept the new condition, pro
vision should be made tor the surrender of
Its charter, and authority given for the
organization of new bonks to supply the
dcficieucy thus creuted. An essential condition to the
success or the proposed new loan is the continu
ance or the present revenue system. A chief means
by which the preseut holders or the live-twenty
bonds can be Induced to surrender them and receive
a bond upon longer time and at a lower rate of lute
rest Is the ccrtaluty furnished by tlio magnitude of
the national reveuue that these bonds are soon to
be redeemed. We must bo prepared to offer them
tho alternative either of accepting the new bond at
a lower rate of Interest or payment of the principal
of the existing bonds, when the five-twenty
bonds shall have been funded to the amount
ef tl.ooo.uuo.ooo or l,aoo,ouo,ooo, the revenues can
be reduced materially, aud yet sutllcient uina be
raiseu 10 meet me ordinary expeu - .
eminent, to pay the Interest on l''ix' ''?."",' f"1'?
also to pay IA0()0,0tlO tu,.'"""'""""' 1 ' ' r'u cl'
annually, should - -' 'ss in negotiating a nev
li s 1 ili Tcme ' ' V expectations, based upon tin
far! - i 1 D ul,""T Bn', dlsiKislllon of the people o
fM,UUU,UVU Ul UIU II lUCHiai
tew
the
file. ."1. "inimniliuil III 1MB imijlie Ol
C l Ulted States to llv tlm nnl.lln rliihtaruumn
Clellt to IllStirv IU In nuuii,i
United States win command flio highest rates lu the
markets of the world. We shall then he In a condition
to enter upon the work or reducing the tax at the
commencement or the nxt session of Congress.
On the With or June, isca, the amount of outstand
ing three percent certificates and compound Inte
rest notes convertible Into three per cent, certificates
was 71,004,s90. On tho Both of June, IsfiT, the
amonnt outstanding was $M,tl,4IO, showing a re
duction or $1B,413,4ho in that form of Indebtedness.
On the 1st of December, 1HC9, the amount outstand
ing was still further reduced to t,T16,lW,
showing a total reduction lu seventeen months 01
'21,8H8,740. The three per cent certificates are a
substitute, to a considerable extent, for United
States notes, being largely held by the banks as a
portion of their reserve, and thus Indirectly, though
not to their full nominal value, they swell the
volume of currency. 1 recommend that provision be
made for the redemption of the three percent, cer
tificates within reasonable tune, and, as a compul
sory mcasuro for the reduction In tho amount of
currency which would thns bo caused, that
authoiity be given to grant charters for
banks in I the states where the banking
capital Is less than the share to which they would
be entitled to an amount nov exceeding thlrty-flve
millions of dollars in the aggregate Tho redemp
tion of the three per cent, certificates and tho addi
tions to the banking capital might be so arranged as
not to produce a serious disturbance in the finances
or business of the country, while additional banking
capital would bo supplied to the sections now In
need or it. and this without any lncrcaso of the
volume of circulation.
There are two evils In the present banking system
which require remedy by prompt and eillclent legls
latlon. The first Is the practice on the part of banks
of allowing Interests upon deposits. The effect of
this practice Is that moneys iu the hands of Indivi
duals which otherwise might be loaned for regular
mercantile and other business purpose are diverted
Into the custody of banks, npon the Idea that If the
security is not better, paymont can be secured at a
moment's notice. Country banks, and others remote
from large centres of trade, having received money
or deposit for which they pay interest, aro anxious
to transfer such funds to other hands from which
they will receive an equal or larger rate or Interest
lu return. They ore stimulated also by tho desire to
place their funds where they can he at all time
commanded. Thus influenced, large sums are
placed on deposit with bankB In the cities, and espe
cially the city of New York, which Is the great centre
of trade and finance for the Atlantic coast. In the
ordinary course of trado tho currency of the coun
try tends rapidly to the cities, and It is unwise to
stiniuluto this tendency by artificial means.
But the evil docs not end
with the impoverishment of the
country, as the banks In tho city may be called upon
at any moment to respond to the drafts of their de
positors, they decline to make loans representing
such funds upon commercial paper, payable on time,
tint Insist upon making call loans, 'as they are
termed, with Government bonds or other obligations
pledged as collateral security. Merchants will not
borrow money in large sums payable on demand.
The consequence is that the moneys thus accumu
lated In the city banks ure loaned to persons en
gaged In speculative purposes. The extent of this
evil Is seen In the fact that of the bank loans In
the city of New York in October, lsiH,
!'.im,ooo,hiO were upon commercial paper and
iW,neo,isio upon denm.. :,wlth a pledge of collaterals;
and In October, 1si,.i, jlj,M)0,uiH) were upon commer
cial paper and i&9,iHHi,iiou upon demand. In the for
mer year 41 per cent., and in tlie latter year 8T per
cent, of the loans made by the New York banks were
upon demand. A further result Is seen lu tlie fact that
purtles borrowing money upen commercial paper tor
legitimate commercial purposes pay from !i to 0 per
cint. additloiuil Interest per annum as compared
with persons who borrow money for specula
tive purposes. 1, therefore, respectfully re
commend that a law be passed prohibiting abso
lutely the payment of Interest by banks upon de
posits, and limiting also their loans upou collaterals
to an amount not exceeding ten per cent, of their
capital. .
lam satisfied also that the practice of certifying
checks, even when funds are in tho bank to the
creditor tlie drawer of the check, Is fraught with
evil, and that it oiifcht to be entirely prohibited.
The following statement exhibits the receipts
and expcdltures for the fiscal year ending Juno ill),
lsiiu: Receipts for Customs, tlSO.uis.l'iG-ilS;
Internal revenue, SlAs,3Att,4UU'sii; lands, t4,020,H4i-34 ;
direct tax, 7Cft,0sfl-c,i ; miscellaneous sources,
f J7.7f2,K2U-77; total exclusive or loans, :'.70,94ii,74i-21.
Kxpendlturc civil service, $50,474,081-15:1; pensions
and Indians, f:ifi,rl.,B44,s4; War Department,
$7S,fi01,l)l(l-01 ; Navy Department, $ZO,OOii,707D7 ; In
terest on the public debt, S13O,0.4,24'2-s0;preinluiu on
7 3-10 U. S. Treasury notes, J.ioo.imo; total, exclusive
or loans, ;m,&9i,.'i97-7r; receipts in excess or ex
penditures, j4tt,4.M,149-40.
The following statement exhibits the receipts and
expenditures for the quurter ending September U0.
1si!: Hecelpts Customs, M,ft9s,2ltlj internal
revenue, !47,U2rt,:ir2-61 ; hinds, fu:t,s04-08: miscel
laneous sources, f7,413,4.u7; total, exclusive o."
loans, $loo,8s:i, 102-112, Kxpenditurcs, after de
ducting the amount or repayments by disbursing
ottluers and others Civil service, tlfi,H)2,202-0S;
Indians and pensions, $13,547,912-79; War Depart
ment, $l;t,B0.4GSi; Navy Department, t&,7B2,G;!0-9G:
Interest on the public debt, J:)7,4.V2-2S0-74; total, ex
clusive or loans, Sfl,480,M4-69 ; receipts In excess of
expenditures, i2:i,35l,H7-4a. The estimated receipts
and expenditures for the three remaining quarters
of the fiscal year ending June 30, 1370,
are as follows: Receipts for customs,
$1315,000,000; internal revenue, $127,000,000; lands,
$4,000,000; miscellaneous sources, $20,000,001);
total, $286,000,000. Expenditures civil service,
$40,000,000 ; pensions and Indians, $21,000,000 ; War
Department, $40,600,000; Navy Department, $14,000,.
000; Interest on the public debt, $9:t,7S0,ooo; total,
$209,2&o,0(Hi ; estimated receipt in excess of expendi
ture, $70, 780,000; estimated receipts and expendi
tures based upon existing laws for the fiscal
year ending June 30, ls71. Receipts cus
toms, $isfl,(Hjo,ooo; internal revenue, $17.000,00;
lands. $fl,GO0,no0; Miscellaneous sources, $2, (hm),000.
Total, $::93,ooo,ooo. Expenditures, Civil, Foreign,
aud Miscellaneous, $60,oni.ooo; Interior, Indians,
ann Pensions, $38,00,000; War JJepurtment $&0,ooo,
0t,0; Navy Department, $18,000,000; interest on the
public debt, $127,000,000. Total, $29l,ono,tNSi. Ke;
celpts In excess of expenditures, $102,000,000. The
foregoing estimates of receipts are made upon the
assumption that the laws now In force relating to
customs and internal revenue wl? not be so changed
as to inatersally aliect the revenue, oud the esti
mates of the expenditures are based upon the ex
pectation that no extraordinary appropriations will
be made.
GEOHfll S. Boctweix,
Secretary of the Treasury.
TIIE TREASURY,
The Annual ItrPort of F. K. Nplnner, Tres.
The. annual report of General F. K. Spinner, as
Treasurer of the United States, to Secretary Boat
well, will le found to be an exceedingly Interesting
and valuable document. The statement of the re
ceipts and expenditures given exhibits the business
transactions or the several offices connected with
the 't reasury, and all national banks that have been
designated as depositaries of the moneys of the
United States, during the year, and the report fur
ther contains the movements of the otllco lu the past
as compared with the preseut, aud valuable sugges
tions for the future.
At the close of the fiscal year, the 30th day of Juno,
Im.D, the books of the onice showed the moneys re
ceived and disbursed in authorized warrants as
follows:
Cash Dr.
Balance in Treasury from last year.. . . $i:io1RK414i7-M
Keceived from loans... $27,M9,7.Vr7tt
Received from internal
revenue 15s,3M,4r)-Mi
Received from miscel
laneous sources 7,7.Vi,2-T7
Received from direct tax 7'i.ft.'t-l
Rpcelvtd from lands 7,020,344111
Received from W ar 87.4:12,471-..
Received from Navy .tft,W7ft 07
Received from Treasury l,tl,U70-7
Received from Interior!. I,024,40ii
Received from customs
(In gold) lso,iMS,4-.!V.
Received from debit of
two items iu Register s
ofllee 04!UtU-t'A,474,S2a-Jl
Total
Cash i r.
Paid oil account or public debt. .
1'ahl on account or the Army. . . .
Paid ou account or the Navir. . . .
1'i.lit rin ue.-iiinit nf IIia Int. rliir
$:s9.;w,6J-ii7
.$in:t,l23,3ia-so
. H).V':'4,4iM-4ti
. ,940,733-04
Paid on acconiit of the Treasury proper 2d,uol)f.7-4H
U6.MI,MS-VJ
j nui uu iLuuiii vi 1110 jii'niuj 1111Q-
rlor.
Paid on account of the Internal revenue
4, WW, DM -S3
9.240,370-11
14.V04, 031-411
l,2sJ,7l.1W
J'aid on account 01 ine customs
Paid on account or the diplomatic
Paid on account of the quarterly aula-
riea.
AO2,Ul0'3U
l,4.7.-9-0
Paid ou account
Of
the war (civil
uruncin
I'navallable, tranalcrred to Regis, er .
Balance In Treusury
4.4-.'i'VO
lV,4-0,3iO'a5
Total....? $7s9,sos,i-uu7
The receipts curried into the Treasury by
10,l)'.i0 covurlng warrant, which U an Increase or
just nine hundred over the last year. Tho payments
were made on 27, MO authorized warrants, fur the
pa.wnenl or wllch there were Isoucil W,;;i draft.
In both or these two lust Items there Is a falling oif
fri in last year.
The foregoing amount Include counter warrants
aud repayments of moneys unexpended.
'I he counter w arrants amount to $.'.3,T19,'.M)2'i)9
The umount returned from sales and
unused money to 1 6,120,00 1 -82
Total as above $4,-i4V-i3-4i
With t.hirt eftTrt. !,. ..... .j
turea that wrr fntu ,.... . . ...
ikl ...1 . 7 ,H" in-anury as aixTU,
the statement would bn:
RSi aii-m
Total of all aetual receipt T4r
inn pnymHnu ! rnpayninnts 13 t; toj-e
negintern uervuicaieH, money recov
ered from flpf 1111 Iti.ra .
Balance held from last year!'.'.!!!!!!!" mo satisr-ft
Total
VATMRNTH.
.$I,30S,6M-
Totalof all aetual payments fwt.Ma.m-tt
Add payments and repayment 8J,Ti oi
Unavailable, transferred to Keglstora
Cash balauce In Treasury !!!.'!!!.'!! .'.'!! 155,s4!s43
$C2a,90,vo. Actual tourdiaburnin..)".;
ifrWJ.Ili Bm transferred to Ue-
mv m N,ne Yar' Tr-.cUo0-. .
The Treasurer gives tallies of the receipts and
expenditures of the Government for thn i nm.
years, separately and as compared with each other:
KSCK1PT8 ST WAKa ANTS.
These receipts, excluding all warrants that were
Issued for repayments, were
n 1SC1 $s8,2e6,6tf8 M In 1806 . .$l,70,R4.m-1l
In 102 D81,02S,181-fl In 1HS7.... l,181,(MiO,rM-tM
n1S3 888,082,128-05! In 1S0S.... l,03O,T4,nit
In 1K64 1,B89,40,03-41 In 18C.. . . 0() 621 B24HT
In 16r 1,801,702.627-61 1 ' '"t
Total receipts in nlue years $s,78,493,03.-25
EXPENDITURES BY WARRANTS.
These expenditures, excluding all warrants that
were Issued for payments and afterwards repaid,
were : 1
In 1861 $S4,B78,U-4T In lsofl. .. .$1,141,079 ftfta-M
""" "i" in tool..., i,u'.i,uiy,nM'sT
In is8 bn,7o,6!io-eB In 1863.... 1 otw tw trio-?
In 1864
In 186
1,WS,OM,101-S9 In 1809.... BiJ4,TT7,96-it
Total expenditures in nine years. Is. tan tut ttq-u
Thus is shown a decreaso in the gross amount of
expenditures In this, as compared with tho last fis
cal year, of $4B.lll,74-63. This Is, however, nearlj
all apparent and not real. The aggregate or re
ceipts, aud also of expenditures. Is largely Increased
by the fact that the amounts of tho redemption of
the old worn-out legal tender notes and fractional
currency, nnd the issue of new notes In their stead,
enter into these statements In all the foregoing ta
bles, and from the further fact that the short ma
tured securities are, under existing laws, converti
ble Into the permanent stocks of the United states,
and on such conversions also enter Into such state
ments. So, too, tho issue and reissue of gold certifi
cates nnd of the three per cent. certiilcatBs enter luta
these tables. All these transactions aro at least con
structive receipts and disbursements, and must
necessarily enter Into all the book accounts of the
oillce.
These transactions for the last two years, com
pared, stand as follows :
Loan Contrary!, Pnhlin l)ht Pttlii
Year 1S0S fl!2B,f 11,41-Vn $841,445,848-61
Year 1800 247,519,758,70 40i,123,81B-80
Decrease $377,691,677-44 ' $445,322,632-71
The business of the Treasury, like the receipts
and expenditures has fallen on within tho year
nearly one-half, and has gono back to about what It
was In 1802, tho second year of the Rebellion.
A comparative statement of the receipts and ex
penditures on authorized warrants is given for the
fiscal year, showing a total decrease In tho former
of $47!),047,007l!4, and increase $22,163,409-22, and
total decreaso in the latter of $491,040,475-88, and
Increase of $:l.r.,06fl,277-80; giving a total falling oif
of $5l4,10:i,8s',-ii). Tho total reduction In the ex
penses of the orniy and navy during tho fiscal year
was $.",100,'J.V80; and of all expenses, $43,793,239-84.
The military and naval expenses ot the last nine
years arc given iu the following tables:
AKMY.
The payments for ami on account of the army, less
repayments, In each year, for tho ten years from I860
to 1809, both inclusive, were In tho years and for the
amounts as follows:
I860 $16,409,737-10 1865 $1,031,B28,B60-T
1801 22,981,160-44 1860 884,449,701 -82
1862 S94,368,4ll7-!l0!l807. .. . 1 . . 95,924,410-63
103 5!9,2!IS,(i90-88 1808. ....... 128,900,861 -41
1804 690,791,842-07 1809 i0,474,545-80
Total war expenses for ten years.. $3344,228,118-7
NAVY.
The payments for and on account of the navy for
the ten years from 1800 to 1809, both Inclusive, less
the repayments, were for tho years, and for the
amounts, as follows:
1800 $1 1,614,964 -90 1R66 $122,61 9,945-20
186L 12,420,8.S7"89il800 43,324,118-52
1862 42,00S,277-09j 1807 11,034,011-04
1S03 63,221,903-041 1808 80,230,209-60
1864 B0, 725,994 "67 1869 83,501,082-TT
Navy expenses for the ten years $406,314,55'J-8T
Money In the Various Depositaries.
The amount of balances and overdrafts standing
to the credit aud debit of the Treasury at the oillce
in Washington and the various offices .of Assistant
Treasurers, designated depositaries, and of national
banks designated as such depositaries, on June 80.
1809, Including those which were not all deposited,
reached $169,353,881-03.
This balance consists of, gold ami
Silver $113,968,768 -63
Other lawful money ,45,396,937-81
Total cash on hand $l59,859,O02-9
Deduct cash uncovered by warrants. 8,07l,6oa-14
Balance as per warrant ledger $155,680,840-85
Total amount In all tho offices to the
creditor I' nited States Disbursing
officers $18,873,995-74
Dnrlng the fiscal year there has been received of
"conscleuse money" $17.29-l; total amount since
November 80, 1863, $118,991-81. The unavailable
funds amount to $2,819-621-92; of this, $62,782-10 is lu
coin and $2,266,739-12 In currency. Total trust
funds held by the Secretary, $0,188,000. This la ex
clusive of special deposits In sealed packages.
TBI SINKING FUND. -
There were purchased for and on account of the
sinking fund, after the 11 th day of May, and be
fore the 1st day of July, 1809, stocks of the United
States, of the loans and amounts, and ou which
premiums were paid on eacu kind and awoilnt, as
follows;
Loant. rrincipal. Prt-liivm. TrtmU.
Feb. 25, 1802... $1,620,U00 $264,573-15 $1,874,674-15
March 8, 1864... 70,000 13,725-00 81,725-00
June 80, 1804. .. 1,061,000 168,644-60 1,914,644-B0
WaiCh 8, 1805... 406,000 74,969-00 639,909-00
Consols Of 1805 . 401, IW) 73,430-00 634,430-0
Consols Of 1807 . 4,718,000 49,803-10 0,460,803-10
Consols Of 1808 . 805,000 49,442 50 844,442 CO
Total $8,690,000 $1,376,483 25 $10,000,438-26
There was paid in gold
for the accrued Inte
rest on the above pur
chases 136,399 -M
Deduct amount of gold
Interest received 992-07
136,4(W-4a
Total amount paid on above to July 1,
1869 $10,801,888-T4
Principal as above stated 8,690,000-00
lioud donated oy William P. Peters. . 1,000-09
Total amount principal In sinking
fund at the close of fiscal year. . . . $3,691,000-00
Statement of six per cent. 6-20 United Slates bonds,
purchased for the Sinklug Kurd, between Kay 11
aad Nov. 1, 1809:
ati. Prinftftnl. Premium. Total Onuf.
Pel). 5, 1S62.... $2,740,600 $170,728-75 $.1,81 1,828 75
March 3, 1864... 187,000 85,180-60 l 62,180O
June 80, 1864.:.. 9,025,700 837,140-80 9,362,840-80
Match 3, 1800... 1,041,060 182,801-77 1,223,851-77
Consols or 1805. 8,713,300 642,100-61 4,365,4006
Consols of 1807 . 7,670,960 1,874,040-11 8,946,696 14
Consols of 1868 . 610,000 86,736 40 602,731 411
Total $17,844,600 $3,019,340-87 $2O,868,8l01r
Paid in gold for accrued in
terest $249,910-60
Received In gold for accrued
Interest -. 1,160-86
Balance of accrued interest paid In
com
843,069 -
Total amount paid out on account or
the Muklng l'uud $21,111,900-51
Statement of six per cent- 6-80 I'nlted Stttes bonds,
purchased and held specially subject to tho dispo
iiiou of congress during the mouths or July, Au
gust, ScpU-uila-r, and Octolier, In the year 1809:
lima.. fWnrlxif. I'rrmium. IWal Ob (. '
Feb. 26, 1802.... $3,99U,7U0 $76ft,097-18 $1,476,797-13
March H, 104. . . fxM0 113.670-80 682,970-80
.In lie lilt, 1mJ4... 8,718,800 1,083,480-39 a,802,2W3
March a, I s05... 2,902,660 60l,2f.0-61 8,623,800-01
Consols of 1808.. 10,300,460 8,981,428-38 1U,34t,S78-3
t Miaolsof ls7.. 13,966,000 2,30,9'.i5-OB 16,340 695-65
idnniai! iin. . i,i,i Z34,t)iU-iV 1,78&,876'9
Trial $15,01)0,000 $8,1011,205-75 $33,109,86'T3
Paid for accrued interest lu
gold $.'44,274 -02
Received for accrued lu
ll rtsl in gold 970-60
I'.ulatuc of accrued interest puid In
ceil) 64:1,30.1 5$
'ieiul amount paid out ou accouut of
Ibis trust ruud $ri3,7l2,609 27
Consolidated statement or 1 nited Stale 6 per
cut. bonds, purchased by the Secretary or tho
'I r HMiry biucu tlio tills day of May lust, ud now
lu-id by Hie Treasurer of the tinted Stilus as cus-