. .=.. • r .., .:. 1-.7,7'..* - ---z , ... P• 7;.• 14.- —,. - -- - .., 7,,, , 1- I ~,, 7 , 1-,:17-77 - 7'lE., •:i : 1. I -- - ‘• -t k: , ' e. , - - s._ •,. 4 7.27 -: :1 101. . gao l -th ' ' 0 0. 1 F 4414 • I : • Ikti . 5 .77 4 th i ..;-', • metio 1 lirtatlii 1 *tifi • • '.744 . 71 - % 1 . ';•-** , 4; 1 -4:: ..,•.•. • 1 ,-if .. .- •!•'..t.,!-:•• . - In.lii - • ~,,,J....•. • -...,•.:••••, .„.._ ••,, „Irons mai namerns. 'thellematnel . of the Trea. ifrohiessege, of - the Preat Iniinet ant Oen:Merit which oftenging ddla forth. Evan ;reports '.the War and Oa eat hardly be said to keitr.for both imsties and dtri- soid depend ipon, the reimitt of long experience, coilicet of • thomorld's his- CU embodied in the cam - e as sinew Vicar!" patpi hamito raise the money, hal Wbiehit may be done with iiI4SIIITECI*IICI i IlltS allays deeply * them Idleettindon to . Oilittb7cets ° ItOpteirMnee of this muting atowardship, which the &ora l:be treasnry renders to the nation. r s eaenOtif the report, which ocen 'deige*pert Yin of our spare to-day, lgits from entering into any exam. ONO . rtMerateendations, with regard . , :14.Ajtifi**4 the on certain commod in!'Jlchuni zaanuftictsuring friends 11* -4443*id, Such ai distilled liquors, litiAiltalt;Utc. These, howtmer, wi7lbpesd li ettrapt the attention , call fbrth the pirtioloof the business • :•; .1.13/190 of theiSeeretat7 of the Treas,u l7 . !',f.-In: , ;s4mootA:ig to consideration of on the_state of the finan- of :late by law at the cam t- each ender', the Secretary attho Treat , nil heti:much satisfaction in bityg arils to say; 'in general, that the op -4.nc the department entrusted to hie hiorebeen'attended, during the last itinifitiiti,hy a greater measure of success than 'iii.'ittaitnzed to anticipate at its begin rrg' 01 LU? MC" TKLIL • , .11, , ' 1 ' •' ' "l9 . ' ''. . had indeed been iniireir ' 612 - 0° ..• remained.. A .':-.',..' m0,,,/6„ona.--- - and - • . .of $18,048,- , h - i .. .....,:z_.,,i , ot the, Ttewurer non balance ,',:.10,110,77iitit the inzie disbursem ents. ._ ' t- 15 0 3 :'- 81 1 , '' •, • - e4L-hy military d natal a wi can s -Naga '' ' „ -„, a ed;' by compar ison, t i'4,•-= no ' bane , to al mos t ______ e _. . -,,,emoderablo, d th e pm, ~._.....11n.. IliitaiY,Prol°44°P!' An d Prmis ,, ~•.:_innoto. ~ • n„.. o t , , the restri ctive no_ti, , :Aiikr operations authorising th. '.'"'''ll)lo;l4'biadt. kn°7lt a, - five - twenties. i already acts no :41*31"4;ii lion "jito" nation: for viellund,„,, tilt iteeleinawl,____ll..t. me terms °64Prkt amounts i n id on mime... which be. 00$ Wpssetab ".- . . reverses in »gz.4tinajfj Terini:l.,llMon or liiiiituntinsoiti:l ~7*-.- / .iiri*.d ,' , # . 4) - Ms' Secretary was large itr..,,:thati'l= kotintionia p rov ide, than ,21Pieri' • ' r int,4,l,4— on iL , first ~.....,_-tiftlitir,,pics,;."B , un p a id, on ~ .. . y 1, ; ,. ~ ....e setem, r,..—•• ';remained ;:..¢ eeeneartily. congrus, reqtual 7,-,,5'.....,--,,, 'tat end9ri of the War ~,, -tay,'Of O. --, ' eblo7 ham in the '-',,,' - , eitthetreldraty l , amounting ''''''4l4l3l 'DaP:43/4lnts' 875 80. 4 aii4PfTy-_, = (44546,89. .. la:thegU e'rettliili ors end offor ''._"•,'..,:::.:.: : •,prO:idafor: - demands,.. Congress , - on the 1 Atli car17'4: ' , ,1858, 4:dhoti:ad an ' additiona l minof 'l'lizil47l7latea.Stawni-9testf'tie but didnot ;cue hun d red to •":7,,,7:....,-, -- tit conchnuonl i !:__ . 0 , be _ .4F2.-.l . goatkiPT_ - • toetnbOdY 011ulm - closed. 1i the session _ act to fk•;:-.1,,,,fpitii-aity-;,zoiti,3,g8610' ;p ar t of `‘.,:,A2:--91,146-aanya seil,lneall : r the ,pprOTAI ?f '- .. 3?, ,Cl,, toi l era P it j t , ,, :2 7: s4 - 6 law. iti_ad eo t . *:,ukris)tit,„,:vir,#l. o-.. t r f. l-;', .. i., trl i : -, i.5.1,,,,„1.4,441;i1et " = g n t , the 6 ' ..::.. :'"lr'.7l,H-- —ail'A4T*ltHftbt4'iuPg°'*sttillagC4':!'Atst 1 7:••,. - ;-: .-.-- "T,i . 14i11462.4 - ALIT" earlier, on ate 25th of. February, k'' t Snieri even; mote important to the credit K Atthir government—the act to provide a V - tadl9l4 currency thrugh a national Ma n- -thir atom-had received the sanction of *goes and the President. The salutary effects tit these two great acts were soon eons lotwithstaaing the aid afforded by the ..- additional Issue of re l United States notes, '''' ander the joint Mien of January, the :had fo it imp o ssible to pre. r... want i gnulualinerema during the session ..-..,-Ofiltisilaali in the amount of unpaid re "Ly quillitions.: Thom which were unsatisfied :. 441hotheeening of-the email= were indeed lllisedterged, and bergs gams were applied to , ,- new dentionis' for : current disbursements. , Butemeggregate ot distorreements,rernain ';` big neemetarity unpaid, increased steadily, '.surtaithstending ill efforts to prevent it, l4' 0 until it ruched, at the don of the suasion, kl' - aelinanof $74,121,189 41. The loast act and the national banking C. lta Were followed by ea immediste revival :,.,i. ,r of puha:re:edit. Success quite beyond an "l tlaPidiett enewaed the efforts of the Socre- IT- !My Ile distribute the tims.twenty loan its „..- on pow of the moot:7; as well as -awry a...., other mesa= adopted by him for repten -tailing the treasury. The result was that r 1 . , -- erithth two months after ~the adjournment etVagrant ihe whole roue of suspended s z ;! , )requisitlear hod bees satisfied, all current ,!,,„ the:Masi promptly met, and full provision x- ..fatede lb? the.pay of the anny and navy. t; : : paring the - romainder of the Iml• . year no -.'. matiessemnenteattindedtheadralrustration iet la Arum= except those which are in fromi Tag expenditares. Not battidit these expenditures it is grat 'i...4 Adak to;be able to stste that during the t\ /Miner the total or dloburistments did not , =meted, while the increase of the debt (RAMA eqtal,th° estimates sub. mitittatieedgreasby the ihs:lretrtry , l ath e l a m, ) - - ,- ....elaeliett• Thus, while It was than -anima- ON . Q , ' , tad *Mao Public debt on the soth ofJune, C, 186% . - 4 7111 reach the sum of-$1,122,297,- *-4011 , it s actual amount on that day w . . 4 ..t , VAS. 4181 87 ; , ' and while the disburse- Atil for tut year were Itsbnatel at &398,- t .. itifcit2t 48 0 ,11E54e5'; total -was $714,709; t..005GM - 1 - -',-,. - ---=''' 1 v 'eli l The aggregate reeeipts froze all sources, ,' , 414veteg the Wane* ,from the preceding yog i MAMA by thebooks of the Memory, .;•,_', doriegltil liMt fiscal year, $901,125,- m 2,674 sad the aggregate disbursements 10 + 6BQ - OS ; learinga Wince on the Opted nee, 1E53, 0f.56,829,044 21. , Dot - salmi borrowed 'during the year, and rip , tiring 1114 same time in payment of aro:tow nominally the total of to- MA 4 , Or dbibuneratata. -The sums ,tittialiMalred and applied during the last. P 1, 1 1. 1 1,_ 1 _ t Legate, Year Amounted to $181,0813,036 07. l'A°4• iitecerefo, should - be de 4aPiitltrac!" bah OldeS of ato,Matement, ' , sat of receipts, fueled '‘el Year,-$720,089,- vent of disbars°. The balance, of MEM . . • ' I A -4 -1 - WlV:it'•%l ,, f+) ,- "" 4 •?' , 14 - _,Pi.'-ft-T.ZWT - •• - ---. • - 4 - - „....„ .__, ...7.7,,.,,,,,. . 1 , „ ...., .:, ” ~,:• i.,., , • 'rra; rater theinstiectioes of {be Com.? talitslortee Mate huttatioeef the Secretary a veil. compeSeatleetleosits wactor some time employed lit aocertainialg, with the aid of practical men, conversant with business, the probable amount of revenue from each object of taxation. The result pf hie in .(ll4fitti wax the estimate which, sanctioned 'by the Coiamissioner, was believed to be cornet by the Becretaity, and therefore sub mitted to Congress. Experience, hes demonstrated its error. The estimate was $133,456,303 73, while the actual receipts were $37,640,787 95. A part of the deficiency may be attributed to the imperfect execution of the law, and a parfto the changes made in it by Congress after the estimate wee made; but it is not probable, had neither cause operated to re duce receipts, that the revenue from this source would have exceeded half the esti mated amount. It is clear that the law, un less materially amended, will not produce the revenue expected from it. The whole of the receipts and disburse ments for the last fiscal year may be more easily nuderetood from a somewhat more formal statement, 1146#1 The receipts, estimated and actual, then, for the last fiscal year, ending on the 30th of June, 1863, were, including balance from the preceding year, as follows: I?= From taltealatacons-.. 2,244,310 11 3,049,816 15 from direct tax-- 11,C47,17 99 *1,415,103 GI From interaalrereaue. 85,456,3191 T 1 37,940,787 95 Balacwa from tut year.. 13.041,549 81 13,041,546 131 Total receipts from all Ordinary mugs. 180,415,345 en) 1124,443,313 29 *See on lot page explanation of difference between the apparent receipt and the actual, which nearly or quite equalled the estimate. The additional sums, sett:oil or estimated, necessary to meet disbursements, were, of course, derived, or estimated as derivable, from loans. The disbursements, estimated and actual were as follows: Fatbnated. Actual. The Ctrel Berolco.-.... 633,811,543 23 623,253,92.1 08, Rondo= and lupus. 5,982,900 43 4,216,520 79 War DopartanouL-.... 747,359,678 08 592,08,660 81 Navy Dopartroont..— 82,177,510 77 03,211,105 27 Lutanist on dobt..- ..... 25.014,1533 OT 24,729,846 61 Total gross estimate. 893340,T21 48 714,709,995 58 But thlsamount,it waa aappossa, would re- - maln undrawu at • and of year, and was therefore deducted from the gross 200,000 000 02 Making actual tatimata.C.l3,346,=l 48 Itt his last report the Secretary stated that If the appropriations should equal the estimates, the balance unexpended at the end of the year would probably reach $200,000,000, and that this sum should therefore be deducted from the departmental estimates, to make the aggregate correspond will probable conditions. The shore state ment shows that the aggregate of estimates, thus reduced, was $693,346,321 48, while the expenditures were $714,709,995 58, exceeding the reduced estimates $21,363,- 674 10. From the actual expenditures, $714,709,- 995 58, there must be deducted the actual receipts, $124,443,313 29, in order to show the amount derived from loans, $590,260,- 682 29, which sum, added to the amount of the debt on the let July, 1862, $508,326,- 499 08, (heretofore erroneously stated at $514,211,371 92,) gives as the true amount of debt on the Ist July, 1863, $1,098,793,- 181 37. The estimates for the current fiscal year 1864 next claim attention. These are founded on actual receipts and disburse ments for the first quarter, which ended September 30, 1863, and on opinions formed upon probable events and conditions as to other quarters. The following statement exhibits what is actually known and what, after careful re flection, the Secretary thinks himself war ranted in regarding as probable: For the first quarter, ending September 30, 186:, the actual receipts were : From enstoms...--- 34 53 4 0 / 8 From lorernal rovertoo. 17,571,713 71 From 134181 OS Flom mincers sources— 641,612 01 Tots.' aettiitlreceipta fur •rter i —...-- c .. 10,039.456 11 • rig total resell:as of Orin quarter, rer three remaining qurtins,:ted• the month of Jane It la ortimated there will be itosired From rusteme..- $50.010,000 0 3 Fran Internal num= co,ooo,ona lu From lands stxkom LV • gragtrell 5,003,(0) CO Halting a total of rr.relpta from ordi nary warms, sal:oda:ad atimated, and Including balsam, Of—. —8 10,568.500 33 To which add l b . actual and eattrua. Making a total of actual sad erilma ted receipts from all sermon for 185 - 5 rooes,6oo 35 The expendirunse easy be detects. For„tbes.•fiest quarter, ending September 30, ISO the seassi disbursement. have Gem For the Civil Sersiee—S 7.216,930 31 For Pemba.. and I. dians ........ _...---. 1,711,211 ie. A For War Department_ 144,387,473 27 For Navy Departmont=lB,sll,Blo 12/2 For interest an Public Debt 4.2a3,2.2t 27 be able to state, reach the stoonnt Erect all sources of :meaner exeeeded -retisipte from ens - 041,786. were lands, esti lrere' $1671.07 17 s aur c es, estinia $8,010,815,: 85, I& eiticuttedet 4 /; 621 V ;or neatly this formof ipplieaaud 41.14/1 they 'are " ti " their -several PnVer" xrdosigt - mai, - however, tram of Allesoo/4 as rs ,:iJ4o4ry itt i t i n i him ;:fie tietl- lereltteldfott Of '4014t1 been , 1414-4141 ' ' :~S.n~" Estlmnted. Actusl. E 63,041,730 14.1 569,M9,612 40 88,724 16 167,617 17 larrimAtts vast 1864 k.lreCelm from kams—...—. Actoal expenditure for first q0arter,..1176,110,1n2 on For the turealning three qoartere the estimate, foundation appropria tions and estimated attendee, are as follows: Far the Clan Service...l 27;15 , 0,072 II For Pinions and la dle. 0,021,012 80 For War Department. 741,092,807 14 For Navy Department 04,407,547 74 For Interest on public debt CUE= Disking a total aggregate of actual and eettmatad expenditures 0f..1...51.0%),731,9 , 41 4' But u thee° estlmatat laclude all oo• expended balanced of sppropris- tlona from former years, they are merman) , much too larga, and there may be safely deducted from their aggregate., vs !hely to rentals enerxpended at the dam of the de al year. the sum of 950.0430,000 Leastorttra total actual expeudithre for r 42,731,000 The tonal' expenditures being deduct ed from the total of reinnita, than, will ban animated balance on the both of June IBM, From Mb statement it appear. that the total •oomityte regidoed for the= probable disboraenomla of the year and Inelndlog animated balance at Ito data, will amount to ---- $755,663,503 35 Of ',bleb there bar. boon prvoldod and applied dating Ow fl .t guar= ter— -176,110,5 T/ 4a Leaving to be g.,79,4gfA57 O) Os which It to estimated there willies • remised from ordinary eoarees dog: tag the three other quarters 4 . 115,300,000 00 Leaving lot to to providut by loom T.1C4;167,547 89 The amount or debt created during the quarter is •asourtained by deducting from the total expenditures $170,110,932 46, the aggregate of ordinary receipts and balance from last year, amounting tqgether to $46,. 268,500 85, which gives as the increase of debt $129,842,482 11. To this sum, if there be added the sum yet to bo provided by 10an5,5464,167,667 89, the result will be $594,00,000, from which if there bo de ducted the estimated balance on the first of July. 1864, $5,836,689 98, the remainder wufbe $588,168,460 07,15nd will represent the total increase, on the bails of these es timates, of public debt during the year. The debt on the Ist of July, 1863, Was $ 7 ,- 098,793,181 87; to which if this estimated Increase bendded the total debten the first of July, 1801, will be 81,686,956,641 Win stead of $1,744,686,686 80, as estimated in the report of last December. It is not certain, or perhaps probable, that the actual-expenditures or actual debt, :will quite reach the amounts now tams- Lted. Indeed, if theexpenditures for the first quarter, $176,110„982 40, and the ordinary receipts, $40,989,466 14 for the same quar ter, be taken as the standard, the total ex penditures of the year will be5701,443;729;- 84, and the total receipts $163,7,7;8.' 1 4'60. To these recelptkif the balance on the Ist Of July, 1868, $6,829,044'21 be added,_it will make tho , total ordinary ' resources 169,080,868,.77; and the subtraction of suuS;frent the total eipenditurie will the whole amount to be provided by Jeans daring the year as F 0 , 860,881, , This sem will therelbrit be, on this hy pothals. awfu:reale or debt - tor the yori and, added the debt existing t& lid 1n1y,1868, will MOO the total amount en the 80th °Clung, 1864, $1,634,164012:44. •.•;. 14 is not Imposs ible' that vigor in the Presetwiltoi,'"erwui>. and economy, lf► *raj? -bream of erspendtte* enforeettl.y . wiseligNagoti;;-'._lll*,t7m4tpoixouil'il* basements and consegrierdAnotom of debteSren below these *nes; sad eettainlj few things can be more desirable than so redactions. ..r The action necessary to these results, is not, however, except as to the comparatively Small expenditures of the Treasury Depirt meat, within the sphere assigned to the Sec retary. He therefore prefers to accept the estimates of the several departments, and the actual approPriations by Congress based upon them, deducting only that proportion which experience has indicated as likely to remain as balances unexpended at the close of the year. He thinks, too, that sound prudence requires adherence to the rule he prescribed to himself from the first, of over stating rather than understating the bur dens created by the war and the demands thence arising upon the resources of the country. lie has sought to avoid exagger ation on both sides, but he has thought it more prudent to excite a little too much apprehension than to encourage too san guine hopes. The real difficulties have been and are too serious, and the real burdens too great, not to warrant earnest demands on all the resolution, all the energy, all the energy, all the wisdom, and all the economy, which the strongest representations, sane- Honed by reason, could or can.bring into I action. ESTIMATES Toll 1865 In addition to the estimates for the cur` rent year just elated, the Secretary is _e quire(' to submit estimates of the receipts and expenditures of the next fiscal year. These estimates, always uncertain, must, in the present condition of the country, be even less reliable than usual. But the Secretary is encouraged to at tempt them by the circumstance that the estimates for the fiscal year, 1864, submit ted in his report of December, 18112, are less materially modified than might have been expected by the actual receipts of one quar ter, and by the probabilities affecting those of the other three, and the general result is more favorable than was anticipated. • The aggregate receipts for 1864 were esti mated in that report at =3,025,000, while the actual receipts, other than from loans for the first quarter, and the aggregate of expected like receipts for the remaining quarters, are now stated at only $161,568,- 500.35, in consequence of the large defi ciency in the receipts of internal revenue. On the other hand, the aggregate expendi tures were estimated last year at 8845.413,- 183.56, and are now estimated, on the basis of actual returns for part and estimates for the remainder of the year, at $755,568,- 500.35. The subtraction of receipts from expenditures show the amount now esti mated as required from loans for the year 1864 to be $554,000,000, instead of $622,- 388,183.56 as heretofore estimated. These figures show that the estimate of expendi tures is now $36,844,683.21 less than the estimate of last year; so that, although the ordinary receipts as now estimate.] will be $61,4:".6,490.45 less than was anticipated o year ago, still the increase of debt will be 8,28,368,183.56 less by the present than by the former estimate, which, it should be re membered, assumed the debt, on July 1, 186:1, at $1,122,2.97,40.1.24, whereas, in fact, it only reached, at that date, the stun of $1,098.793, I W ith these iHu.strations of the uncertainty of estimates for a year which Is to commence more than six months after the making of them, and without professing any sanguine expectations that the estimates now to be submitted will, when tested by experience, prove, like the last, less favorable to the country than the actual results of adminis tration, the Secretary submits the required statement for the fiscal year ISIIS, founded on the estimates of their probable require ments furnished by the several departments, and on what seem to him probabilities con cerning receipts from ordinary sources of revenue. lie estimates the probable receipts as follows: Estiroute.l balance, July I, IBA From m.uttoms 711,000.1.11111.110 From Internal mwettue Frt. miscellancow wart. Making mtlmated sonvstemr_lpt3..D.l,W3/:,53.9.93 And he estimates the expenditures as follows: Le/boated balance of former approprb talons unexpended, July 1, 160 531,Olfb1Kal.tu For the dell err-rice • . . .... . For Pensions sod Indians .......s. 9,ati.4.7a For the War Department ' , A.4ivvt.1 . Y7•77 Yor the Navy Departrasut . ..- 142,.15,7NN.40 For Intermit ou public debt ._-_. ..... ... FiIiIN7•TFI3/5 Making the aiwregrite of estimeted ex ............. Hut be atLcustes as likely to remain endreven on the .311th Juno, 11141 S, and therefore to be deducted from this aggregate 400.Q10,1/00.0J1 115,9X.,M 00 ■.king the mat °etiolate of expend'. turn for the pox . $761,8111,083.an From which dedort animated mcalpte from ordinary sourcee,as beton, stated t9X,0tta,f49.9.3 Leaving to tow prtividni by 10at......4544.978,54.5.1nt The sum to ho provided by leans repre sents the increase of debt during the year. Assuming, therefore; the correctness of the estimate which puts the debt on the let of July, 1864, at $1,686,956,641.44, it will re sult from these estimates that the whole debt will have reached on the 30th of June, 1865, the sum of $:4231,935,190.37. It has been already seen that the amount required for general disbursements, exclu sive of payments on account of public debt, for the three last quarters of the cur rent fiscal year, was, on the Ist of October last, $579,457,567 89, of which sum, $113,- 300,000 were expected from ordinary sour ces, and the remainder, 8164,157,367 89, was expected from loans. The receipts and expenditures during October and November, other than on ac count of principal of debt, amounted each. so far as has been ascertained, to 8147,060,- 731 19, without balance. Of these receipts, $35,620,703 18 were from ordinary sources, and $111,931,027 98 from' loans, either temporary or permanent, leaving to be ob tained during the remaining seven months from ordinary—sources $79,670,206 82, and from loans, $352,226,689 82. On the basis of these tw months, the receipts and ex penditures from ordinary sources for the last three quarters of the year will respec tively exceed the general estimates by $43,- 038,694 31, and 89,532,257 72, making a difference In favor of the country of $3,- 501,409 59. I=l3 The Secretory admits, thereforv'no ap prehension of deficiency on comparison with estimates, in any of the ordinary sour ces of income, except, perhaps, the internal revenuer, nor does he anticipate any formid able difficulty in providing the amount to be obtained from loan, especially It the successes •ouch sated by a gracious Provi dence to our armies during the last nine months shall continue to attend them. Bat no one can be more profoundly con vinced than himself of the very great im portance of providingeven a larger amount than is estimated from revenue. To chock the increase of debt must be, in our circum stances, a prominent object of patriotic solicitude. The Secretary, therefore, while submitting estimates which require largo loons, and while he thinks it not very diffi cult to negotiate them, feels himself bound by a prudent regard to pogaible contingen cies, to urge on Congress efficient measures for the increase of revenue. WAYS MID 1ff..i.141--MODIFICATION OF DUTIES It is possible that a limited additional amount of Income may be derived from Judicious modification of some provisions of the laws Imposing duties on foreign im ports; but the chief reliance for any sub stantial increase, and even for the preven tion of possible decrease, must be on inter nal duties. The Commissioner of Internal Revenue recommends an increase of the tax on bank note 'circulation to two and two-fifths per cent an increase of the duty on distilled spirits to sixty cents porgalion; auburn:me of the duty on tobacco to tWenty cents per pound on leaf, and tram nee to twelve cents according to quality, on manufacturid; a duty of ten cents per gallon on crude pe tioleum; a duty of two cents per pound on cotton; the repeal of the tobacco and petro leum drawback's, and miens other changes of the Internal revenue'laws, designed to augment the receipts 'from this source. In the particular reoommendstions just Men tioned theSer.retar7 folly concurs, and, comniernbi ill his suggestions toearefulat 'The enactment of , each laws. tie wilreeente . tier - ease of the . internal revenue to the amonsteriginelly of one 6i:m*6d and MY. tenon ti - yeet., is bs thisir4W.O...'o3lddsTo4o4 of olio Ifs '•• .5:,• , '"X.01!1.""•1if' ..-, `': • • IlitatitOdOf expenses of the wer +re. been defrayed t.y_ to.*eiteitt _ - 'l' • nothinibut the eiPeccition'ef its speedy ternination could 1541Y:warrant. In hiii . fuet report, submitted et the spe cial session in July, 1861, the Secretary stated his conviction that, to a sound finan cial condition, a system of taxation certain to produce a sufficient revenue to pay.the whole ordinary expenses of the government in times of peace, and the entireinterest on the public debt, and to create a gradually increasing fund for the redemption of its principal, was indispensable. IL wax not important, so long as it seemed highly pro- bable that the war would be speedily brought to a successful close, that the re venue should largely exceed the ordinary expenditures and the interest. On the con trary, it seemed wisest to obtain the means for nearly the whole of the extraordinary expenditures by loans, and thus avoid the necessity of any considerable increase of the burdens of the people at a time when .the sudden outbreak of flagitious rebellion had deranged their business, and tempo rarily diminished their incomes. 'rhe financial administration of the first fiscal year after the outbreak of the rebel lion was conducted upon these ideas. The sots of Congress at the extra session of July, 1861, were framed with the intention of supplying the full amount of revenue demanded by them. But receipts disap pointed expectation, _and it soon became obvious that a much larger proportion of the means needed for the fiscal year 1862, than the principle adopted would allow, must be derived from loans. When, therefore, Congress assembled in regular session on the first Monday of De, cember, 1801, the Secretary directed atten tion to the necessity of increased taxation. The responsibility was promptly assumed by Congress and the internal - revenue law wits enacted, and such modifications of the tariff act were made that ample provision for the desired objects was now supposed to have been certainly secured. It was not expected, however, that the influence of this legislation would affect the re sults of the then current year. Nor did it affect them. The total receipts from ordinary sources to the close of that year, June 80, 1802, were insufficient for the pay ments expected to be made from them. The receipts were $51,935,720 70, while the disbursements for the civil service, for Pensions and Indians, and for interest, were $57,71.11,8/1 11 ; leaving only $14,- 233.1119 05 for the War and Navy Depart ments, the expenditures of which in the last year of pence had been $27,922,917 24, and nothing at all for extraordinary expendi tures of a sinking fund. In his report at the December session, IStl2, the Secretary, considering this defi ciency and assuming the correctness of the estimate of 5130.000.000 as the amount of re ceipts from internal duties, and taking double the expenses of the War and Navy Departments in the last year of peace, as the amount likely to be annually required after the suppression of the rebellion. ex pressed the opinion that the probable re ceipts under the legislation of the preceding session would meet all ordinary expendi tures for the fiscal year 1963, and interest, and leave a large surplus to be applied, for the present, to the extraordinary disburse ments of the war, or, after its close, to the reduction of debt. In that report, therefore, and in his subsequent communications to the proper committees, the Secretary sug gested no increase of taxation, but confined his recommendations to other measures for the improvement of the public credit, among which those. relating to loans and to uni formity of currency hellthe foremost plate. Congress gave effect to these recommen dations by the loan act and the national banking act, but at the same time somewhat diminished the expectation of income by modifications of the internal revenue act. Notwithstanding this diminution, how ever. and notwithstanding the much larger diminution caused by the failure of receipts expected from Internal duties unaffected by this legislation, the Secretary has now the satisfaction of being able to show that the actual receipts of the last fiscal year did pay the whole interest, the whole amount of ordinary expenditures, estimated for the army and navy at double those of the last year of peace, and a portion of the extra ordinary expenditures which, under the circumstances, was equivalent ton payment into a sinking fund IMICEEI D=CEI 5,003,000,0 Thus the total amount of rtavii.ta dating the ()seal year 1,3 .. Whit.. cupundll arc. vrerc roc Mc rl.n gcrvicc *JO rut l'cu and Indians $ . 27.170.411 For int..men And Iroold lur« Iron far ordlnary diriborownromtr of War uul ry Urpartmentr, ndlniat,tl nt dontl« ht but r of 1000 .",,,F45,834 48 Leaving dtfterotaca lo.tween rneipta and ordinary expendtturra arplica. Erie to ratraAirdlnary capniditum. t== Ilea it been possible, therefore, to s up press rebellion and restore expenditures to a peace basis after one year of war, and before the Ist of July, 186'2, there would have been a balance on the Ist of July, 1863, of more than sixteen millions of dol lars applicable to the reduction of debt. So, assuming as correct the estimates of receipts rind disbursements for the esrrent year 18d4, based on actual receipts and ex penditures of one quarter, nod making the total amount of receipts $10,.568,r00 ;15, and taking the disbursements for the Ci•il Service, Pensions, and Indians, to be $4:2,- 108,126 :13. for interest, $59, 165, 1..", G :18, and for the ordinary expenses of the army and navy, as before, to be double those of the last year of peace, or 556,845.8t14 48, and deducting the total of these disburse ments, $157,119,1817 19, from the total of receipts, and there will remain an ones pended balance of $4,049,403 16. it been possible to suppress rebellion after two years of war, and before July, 1t . t6:1, this sum would have been applicable to the pur poses of a sinking fund. So, also, assuming again as correct the general estimates of receipts and expendi tures for the next fiscaLyear,lB6s, the total receipts for the year will be5206,836,a5 53; while the expenditures for the Civil Ser. vice, and Pensions and Indians, will be $17,644,405 54; for intere5t,565,387,676 IS; and for the army and navy, observing the rule already stated, $55,845,834 48, making a total of 5178,836,010 17, which sum, if deducted from the total of receipts, will given remainder of 27,998,529 76. Should the rebellion be suppressed after three years of war, and before the first of July, 1864, that remainder will be applicable to pay ment of debt. These statements are subjeetto some mod ifications besides those which may result from errors of estimates; but these cannot reduce, though they may increase, the 4- plicable balances, and therefore cannot affect unfavorably any deductions from the figures which hare been given. These statements illustrate the great Ito portanco of providing, beyond all contin gency, for ordinary expenditures and In terest on debt, and 2r the largest possible amount of extraordinary expenditures, by ,'taxation. In proportion to the amount raised above the necessary sums for ordi nary demands will be the dimunition of debt, the dimunition of interest, and the improvement of credit. It is hardly...We Much—perhaps hardly enough—to say that every dollar raised for extraordinary ex penditures or reduction of debt Is worth two in the increased value of national secs , titles, and increased facilities for the nego tiation of indispensable loans. These statements illustrate equally the importance of an economical and vigorous prosecution of the war. No prudent man will recommend . economy at the expense of efficiency. Such nominal economy is 'real extravagance. But efficiency is not .pro- meted by Trofusion, or waste, and least of all, by misuse of public money or public property. Every dollar and every max are 'freely offered by a generous people; how sacred the obligation that not one , ntan should be wasted, and not one dollar mis applied. Nor is rashness, in war, Vigor. But the vigilance that misses no opperrtu- Idly, the energy that relaxes no effort, the skill that vitantea all resources, , and the perseverance that never grows weary, these make true vigor. If by such vigor the rebellion can be suppressed, and the War ended before the.lst ofJuly next; thenorm- Vry will be saved frptii . the 'TOIL inert:too of debt which must necessarily: ttend its con tinuance durintanother year, pad tint debt itself can at once be placed in course 'of steadynedection.'And whenever. ptbgreq - Aye ,payment shall ,begin, the;:?slue :of nistionalsonuithit- will rapidly: I*, and redaction In rites alibi - rest will_igniduallp Atuelnishtheburderis et'debt. _ I SP, the 8.01:4W—Thnf..44"41. tbs4ibelarpedLipoisibie.proportion of ex pandit/setae provided by direct contribu tions front the property and incomes of the people, be is aware that a still larger pro portion must, as yet, be provided by 10,toS. THE 54j10NAL EIZEIT---011JECTA KEPT 10 clef In the creation of debt, by negotiation of loans or otherwise, the Secretary has kept four objects steadily in view: (11 moderate interest: (2: general distribution; (5) future controllability; and (4: incidental utility. I.—Towards the accomplishment of the first object, the nearest approach that seems possible has been made. The earliest ne gotiations were at the highest rates of in terest• for it is a distinguishing character istic of our financial history in this rebel lion that the public credit, which was at the lowest ebb in the months which preceded its breaking out, has steadily improved in the midst of the terrible trials it has brought upon the country. The first loans were ne gotiated at seven and thirty hundredths per cent.: the next al seven; the next at sic; more recently large sums have been ob tained at five and four: and the whole of the debt which is represented by United States notes and fractional currency bears_ of course, no interest. The interest on the debt which exists in the form of treasury notes and certificates of indebtednessor of deposits, and is called temporary debt, is paid in United States notes; while the interest on debt which ex ists in the form of bonds, and is called fundedolebt, is paid in coin--.a discrimina tion which in intended to bring the payments of coin interest within moderate compass, and at the same time to offer special in ducements of investments in bonds, in order to avoid a too rapid increase of circulating notes and consequent depreciation. The avenge rate of interest on the whole debt, without regard to the varying margin between coin and notes, was on the first day of July, 18132, 4.36 per centum; on the first day of January, 1863, 4,02 per centum: on the first day of July, 1863, 3.77 per centum: and on the first day of Octoher, 1667, 3.1. t:) per centum. 14 will not escape observation that the average rate is now increasing, and it is obvious that it must continue to increase with the increase of the proportion of the Interest bearing to the non-interest bearing debt. And as the amount of the la t ter, con sisting of United States notesand fractional currency, cannot be materially augmented without evil consequences of the most serious character, the rate of interest must increase with the debt, and approach con tinually the highest average. That must be greater or leas in proportion to the dura tion and cost of the war. 2.—The general distribution of the debt into the hands of the greatest possible num ber of holders has been the second object of the Secretary in its creation. This has been accomplished by the universal diffu sion of United States notes and fractional currency, by the distribution of certificates among great numbers of contract creditors and temporary depositors, and by are to popularize the loans by giving to the people everywhere opportunities to sub scribe for bonds, These subscription ar rangements have been especially useful and successfuL They have been adopted us yet with reference to only two descriptioni of bonds—the two commonly known as seven thirties and five-twenties, so named. the first, from their rates of interest, and the second from their periods of payment. The plan of distributing the seven-thirties was that of employing a large number of arents in many places. and directing their action from the Department. it worked well for a time, but was soon found inadequate to tLe financial necessities of the government. For the distribution of the five-twenties, therefore, a different plan was adopted. After ascertaining, by inquiry, that they could not be disposed of to capitalists in amounts sufficient for prompt payment of the army and navy, and for the satisfaction of the just claims of public creditors gen erally, without serious loss. the Secretary determined to employ a general agent, un der adequate bonds, and confide the whole work of distribution, except FO far as it could be effected by the Treasurer, Assist ant Treasurers, and Designated Deposito ries, to him and to sub-agents designated by hint and responsible immediately to hint. Coder this plan, and chiefly through the indefatigable efforts of the general agent 'and his sub-agents, five-twenty bonds to the amount of nearly four hundred utilliotls of dollars, in denominations of tifly, oue hundred, live hundred, and one thousand dollars, were distributed through Out the whole country, not controlled by she rebel lion, and atuong all classes of our country men. The history of the world may be searched in vain for a parallel case of pop ular financial support toe national govern ment. The Secretary is unable to perceive in what better or more effectual mode the important objector distribution could be ac complished, and he proposes no departure from it, except rich as considerations of economy, harmonized with efficiency-, may suggest.. B.—The object of future controllability has also had a prominent place in the re gards of the Secretary. Under the condi tions which existed at the outbreak of the rebellion, he aequiest•ed in the necessity whit h seemed to dictate the negotiation of bon is payable otter twenty years; but he acquiesced with reluctance, at I. as noon as permitted by circumstances, recommended the enactment of laws authorizing the issue of bonds payable after shorter periods, as well as the creation of temporary debt in other forms. In harmony with these views Congress provided for the issue of the Iginds known as the five-twenties; and also for the issue of treasury notes payable three years from date; for certificates of indebtedness payable in one year, and for temporary loans by deposits, reimbursable after ten days' notice. At the last session Congress repealed some embarassing restrictions of former nets, anti authorized the issue of bonds payable after ten years, and of trean ury notes payable at pleasure or three years from date. These treasury notes were made legal tenders for face value or convertible for amount and interest into United States notes. Min= The Secretary availed himself of this legislation by placing with the people as large an amount as possible of five-twenty bonds, and by using the other powers so as to put the whole debt, except the long loans first negotiated, in such a shapethnt prompt advantage can be taken of favorable cir cumstances to diminish the burdens it im poses on industry. Whenever the constitu tional supremacy of the nation shall be re established over all its parts, it will be completely within the power of Congress and the Secretary to fund the whole or any part of the temporary debt in bonds bearing a very moderate interest and redeemable at the pleasure of the government, after very brief periods, or, perhaps, at any time after their issue.• Nothing further seems desira ble on the snore of controllability. Tho anal object of the Secretary was to extract from the unavoidable evil of debt as much incidental benefit as possible. To this end, he desired authority to re ceive temponny loans in the form of de posits-reimbursable after a few days' no tice. This measure was regarded by many with something less than favor at first; but Congress, after full consideration, author ized the receipt of such deposits at an inter est not exceeding five per cent. to the amount of twenty-five millions of dollars; then raised the limit to fifty millions, and then to en hundred millions; and provided a reserve of fifty millions of United States notes to meet demands for reimbursements beyond other convenient means of satisfac tion. It was not long before these deposits reached the highest limit, and, before the flow could be well checked, somewhat ex ceeded it. The utility of the measure was very conspicuous on the recent occasion of great stringency in New York, when the Secretary was able to reimburse over fifty millions of these dePosits during the last weeks of the year; - by which action the pressure was sensibly, alleviated, white use of only a fifth of the reserve. In former =porta the Secretary has sta ted his convictions and the grounds of tbem; ithpecting the necessity and the utility of putting a large part of the debt in the form . of United/fiats:a notes, withoutinterescand adapted to circulation as money. These convictions remain unchanged,, and seem. now to be shared by the people. Far the' first time In our/den:9 , W a areal approach to a =Venn currency been main; and the benefi Aturgb. sun far Fram-thedent attainable condition,, are , felt by ; all.. The :circulation' has been attributed through: out the country,. and Is averywbere accept— ably: xt ottifleattaa AP: ittit*- Alia „ . • 'T +~r~eAft/ ~ ~i tribetnaFtto dietingialatted s hy the learnitig and virtue,' of ira aietnbera - as the Supreme. Galt af'New York has given the sanction, or - it, ja•igmret to the eeasti- So, too, real and great advantages are de rived front the a Ids di:lo , ion of the debt among the people. thr-ogh I. is Ina., I ran actions, and '1.,,0u ¢h III.• exertion. of the officers of the .4,1.0114,n t 0..,1 :be agents for loans al MS. ly noticed. It is impor.ildr to c,cirnaic thea.ll..itiages to national ono.: :.nd national -irength se cured by this 41kt nbutioo. Every holder of a note or Lod, from a fir , cent fractional note to a hie thousand d“11.1,.r land, has a direct interest in the secorily 111 national institutions and in the ntsLiliry of national administration. And it is another and no small advant.i.zo or ilor diuriloilion that the burden- or h.•nriert when loans are held 6c fee, and especially by foreigner, duntnish in pr. - Tort:on as the n•ceisors of tater,tis identified with the payer of la seb. Another incidental froM growing from the itter root et debt, 1141`i Leon fully explained observations heretofore submitted on the rational hook.ng system. Eneept through uch n system nu , ire way is seen to the troplete and pertonnent estublishotent of n uniform cor,ney: and aorstemof national banking. fair to all anti eeee refer all. can only be safely and ft noir established by making use of a portion 'lithe national debt as security for the national currency. In these several trays may even such great evils as are brought upon us by re belliott be ;ran:quitted, by a wise alchemy, into var , otts forte.; of utility. The Secretary has endeavored to this alchemy, with what entrees the country will judge when lime and trial alien have applied to his work their unfailing tests. Meantime additional loans are required. nd, as It.gislnt ion now stands, •evcral odes arc open. NUL, rlo A . LOAN,. The depoAils for temporary loan are fined at OOP htin.ll-,1 millions of dollars. The &meant of this deposit on the first day of December h.id been red,ced to 120 IQ and pa ments of S , 10.1,00.1101) had been made front the reserve. The additional payments will be confined within the nar rowest possible limits, and can hardly ex ceed twenty-five in:limns. The reflow of deposits has already begun, and will proba bly soon exceed reimbursement s, and so ar restpnyinents from the re4erve. The whole redoes beyond the amount of these payments till! be available as part of the additional loan required, and may be stated, without touch risk of mistake, at twenty-five mil lions of dollars. The Secretary perceives no nolid reason for retaining the reStriction on loans, in this form to one hundred millions It may, as he thinks, be usefully removed. Is these advantages of these deposits be come better and more generally understood, the loan iu this form will doubtless, in the absentee of restriction, be largely increased, and the po,dhility of demands for reim bursement.. tte and means to meet them, on he folly provided for by on increase of the existing proportion between deposits and resert e. Such aunrrangeinent, the Secretary inclines to think. would operate beneficially by increasing the amount of currency when unusual stringency shall re quire increase, and reducing its amount when returning ease shall allow reduction. Another portion of the additional loan re quired may be obtained through Lb° sale of the remainder of the bonds known!! as Gee twentie.. The amount of these bonds ClLl sullscribe,l for on the first of Decem ber was $101,0:0.600. It twill not be difficult to dispose of these at par, and it is possible that a small premium may be obtained op a part. In a former report the Secretary placed tie limit, to which the loan tu the form of certificates of indebtedness could be carried at one hundred millions of dollars. Expe rience has shown that It can be carried to one hundred and fifty millions, and that its natural litrWs about that sum. On the first of December'lne amount of these certificates true $ll, - ,7:t.'tyStO. It would be unsafe, therefore, to rely on any substantial increase of loan in that form. The limit prcom-lbcd by law to the Issue o United States notes has been reached, and the Secretary thinks it clearly inexpedient to in crease the amount. When circulation exceeds the legitimate requirements for real payments and exchanges, no addition to its volume will increase its value. On the contrary,sudi ad dition tends inevitably to depreciation; and depreciation. if addition be continued, wit! , find its only practical limit in the utter worth lessness of the augmented mass. W hen Congress authorized the creation of debt, to a curtain extent, in the form of United States notes, and impressed on these notes the qualities of a circulating medium, its ac tion was justified by the disappearance of coin in consequence of the suspension of specie payments by the necessity of provid ing a medium in'which taxes could be rot lerted, loans received, and payments made; and by the obvious expediency of providing that medium in the form of natienal issues instead of resorting to the paper of banks. Under the cirennastantes its action wan wise and necesssary: but it was equally wise and neceslary to limit the (aurae( the issue. , by the neemsity which demanded them: They were wanted to fill the' vaeuntolcaused by the disappearance of coin and to supply the ad ditional demands created by the Increased number and variety of money payments. Congress believed that four hundred millions would suffice for those purposes, and there fore limited issues to that sum. The Secretary proposes no change of this limitation, and pLues no reliance, therefore, on any increase of resources from increase of circulition. Additional loans in this mode would, indeed, almost certainly prove illusory; for diminished value could hardly fail to neu tralize increased amount. Sufficient .circulation having been already provided, the Government must now borrow like any other employer of capital tepporarily requiring more than income will supply, and rely for the credit which will secure advan tageous loans upon good faith, industrial ac tivity, accumulated though not Itnmediately available capital, and satisfactory provision for punctual payment of accruing Interest and ultimate reimbursement of principal. To subAcriptions for the remaining five twenties and deposits fur temporary loan,. therefore, must be directed all reasonable ex pectation of means for the service of the cur rent year, except from negotiations under the act of last session. The sums to be looked for from these two sources have already been stated, and amount to $1211,059,600. If this aggregate be deducted from the amount to be provided by loans fur the last seven months of the current year, &trendy shown to be $352,226;4:9, there will remain the sum of $2.26,166,909 to be provided by negotiations under the act of last session; and, under some like act, most be provided in like manner, if the continuance of the war shall make It ne cessary, the sum of 04-1,978,54,8 93, estimated a, likely to he required from loans for the fis cal year 1863. The act of last session authorized the loans supposed to bo required for the focal years 1863 and 1864: and, of the amount required for the service of these two years to the first of December now current, one hundred and fifty millions in United States notes, and tiny millions by a loan fur two years five per cent. treasury notes hare already been provided under that legislation. The art is so well conceived and expressed that little other teals lotion fur the loans of 1864 and 1805 will be required than the application to those 'earls of its loading provisions. It will doubtless be thought expedient this session, as last session, toautherite the borrowing, in some form, of three hundred millions for the current, and hundred millions for the next, fiscal year. Indeed, the only modifications of the act of last session necessary to adapt it to the re quiremente of the current and coming year seem to be (1) the omission of all reference to UnitodState*otes beyond thegiving a simple authority to the Secretary to ascertain from time to time the amounts destroyed or lost, and to replace them by new issues ; (2) the ce real of the existing limitation of tho &Toad loan to one hundred millions of dollars, and the substitution of a provision for a reserve equal in amount to half dm deposit; (3) the permission of the negotiation of loans n aeamable obsoltittiii id pleasure, orat pleasure after a time fixed, net more remote than forty years; and (4) the oral/Sloe, perhaps; of the. clause taming ciretaation and deposits, as being more appropriate to an internal revenue bill. It sa hoped that the other provisions of the last may be retained in the now loan ad. • Under such legislation, the Secretary enter; Cain little doubt of being able td obtain whatever funds will be needed, through loans, at reasonable rates of interest, for bonds or treasury notes. - Tun ItATtONAL BAIIIIIIO STISTEII.' , Fat a 'warrant of thii. ocraftdonco, boweier, he must not omit to say ttrat'he relies' much on the "rapport to be given tithe,pubtlo matt by the national - bit:attic cat es and lir the nao . tionntisithmitthi:catrenV:-"-Theis tei,astP $ thbilt4no `piailbilltjhf. - peitnenentiflraa' confer nitministrettan o e' tlia ,, C64: undo' ciliumstances iavolvia •ersatfackai large 41444 tutleilloons ciao .IlestiaJo arentitom . nfifyi l nil'd ' e l w k' . '*4: . 2 .,. ' ,:,::: :!--. I . 1 .. ii,* . i.i . ,::Ti0:E4 5 . g , ..:.14 ' 1 , ;, , :, .'4-(f..;-,47,4-...,- eottntry, and not liable to variation in plan- titiOr in 'slue except under the operation Of nubile] legislation and the general !arse , trade. • Only two kinds of currency fulfil these con ditions:the first, a circulation of coin; the other, a circulation of note+ of uniform do - ription and value, issued by the Govern lo,nt, and either paid directly to Government creditors, or supplied to banking associations to be employed in general business. The circulation new generally need in this contry, except so far no it consists of bank notes, is of the latter ,ort: and no circulation, nut immediately convertible into coin, can be bettor. It is an error to suppose that the increase of prices is attributable wholly or in very large measuro:to this ci !lad It been possi ble to borrow coin enough, and fast enough, fur the disbursements of the war, almost if not altogether the came effort: , on prices would hare boon wrought. Such disbursements mode in coin would hare enriched fortunate contractors, stimulated lavish expenditures, and so inflated prices in the Fame way and nearly to the same extent as when made in notes. prices, too, would hare risen from oilier causes. The"withdrawal from mechan ical and agricultural occupations of thousands of our beet, strongest, and most active work er+, in obedience to their country's summons to the Gold, would, under any system of cur rency, hare increased the price of labor, and, by consequence, the price of the products of labor, while the price. of many things would havo risen, in part from other causes, as for example, the price of railroad bonds from vast increarie of income, through payments for military transportation; and the price of cot ton from deficient supply. Much the greater part of the rise of prices not accounted for by the causes just stated, as well as much the greater part of tho difference between notes and gold, is attributed to the large amount of bank notes yet in circulation. Wore these notes withdrawn !Mill use, it is be lieved that much Lathe new very considerable difference between coin and United States totes would disappear. and thermought to be no difference in favor of coin, when it is remembered that United States bonds bearing six or even fire per contain coin Interest are intrinsically worth,unless the theory of na tional bad faith or national insolvency is to be admitted, more than their amount in coin; and yet such bonds can now ho had for their amount in United States notes. Nor can a condition of affairs in which ex ...ice prices prevail, or national notes com mand less than par in coin, be regarded as of permanent duration. While it lasts, it most be borne with patience, and made tolerable by economy. -No useful remedy will be found in extravagant inertse of salaries and dis bursements, but an aggravation rather of the evil. All proper measures should be adopted to hasten the return to the normal condition of prices and business : the patriotism and intelligence of the people must he relied on for the rest. The Secretary has heretofore expressed the opinion that whatever may be the true degree In which the ea:Taney •f the country is affect ed by a bank-note circulation, issued without national sanction and by corporations inde pendent of national authority, and not re ceiveable for national duos, it cannot be ques tioned that in some similar degree, the nego tiation of national loans must be prejudiced and their value to the national finances dimin ished. This opinion is confirmed by observa tion and experience. Impelled, therefore, by a profenund sense of the present necessity of a national currency to the successful prosecution of the war against rebellion, and of itsjitility at all times in protecting' labor, cheapening exchanges, facilitating travel, and increasing the safety of all business transactions and at the same time unwilling to urge even salutary and no cesssary reforms in such a way as needlessly to disturb existing conditions or impair the value of existing investments of capital, the Secretary recommended, in two successive re ports, the authorisation of national banking associations, to which the capital of the cor porations now issuing notes for circulation might be transferred, with, advantake to the parties in interest as well as to the general The sanction of Congress was given to these views at the last session ; add the simple as surance thus given that, henceforth, the coun try is to have a national currency secured by a pledge of national bonds, and the belief that this currency will at no distant day take the place of the heterogeneous corporate currency which has hitherto tilled the channels of cir culation, at once inspired faith in the securi ties of the government, and more than any other one cause enabled the Secretary to pro vide for the prompt payment of the soldiers and the public creditors. If the policy thus Indicated shall be fairly and judiciously pursued, and proper measures adopted to induce the conversion, at the ear liest practicable period. of the bank corpora tions,of the States into national banking Use elation., and of the corporate circulation into national currency, the Secretary believes,and, as he thinks, not without good grounds, that all the money needed for prompt payment of troops, and for the most vigorous prosecution of the war, eon Le obtained by loans on rea rouble terms ; whilq. . af UIt , STOSi. 013 debt, and all ordinary espendiMres, and a considerable part also of the extraerdieary expenditures canoed by this war, will be mat by the ordi nary resources. Nor does he doubt that, through wise legislation, sustained by intelli gent popular will, and supported by prudence and energy in civil and military administra tion, national currenby can be so approxima ted in recognized value t° coin, that a re sumption of paymentein specie can be brought about much sooner than even amigo the per sons now permit themselves Ito hope. The Secretary has already referred in gen eral terms to the reports of the heads of the various bureaus and branches of administra tion in hisdepartment. A peculiar interest Is felt at this time in their operations, and espe cially in the operation of those most recently brought into existence. Tho Comptroller of the Currency reports the organization under the national banking act, prior to the 29th of November, of one hundred and thirty-four associations ; all which, upon the suggestion of the Secretary, have adopted the name of National Banks, distinguithed by order of organisation and by locality. These Banking Associations have been formed in seventeen States, and the District of Colum bia, and have an aggregate capital of $16,- 081,200. The great care and labor required for the preparation of suitable notes for the new national currency has. delayed its issue beyoudexpectation ; but the printing is.now begun, and the several assations will be mipplied with the amounts 4tVwhich they.are respectively entitled within a few weeks. Be sides the Associations reported as actually organized, there are many others in process - of organisation. Thera, is hardly a State not controlled by the rebellion, and hardly a con siderable city, in which a national banking association has not beer. organized, or is not being organized. Even New Orleans is not an exception to this statement. Thus the great work of introducing a perm anent national currency has been entered upon in a spirit and with as energy which pro wise perfect success. The Secretary thinks he risks nothing in saying that within the present year the benefits of the system will have so approved themselves to the sense and patriot ism of the people, that it *ill be beyond the reach of successful assault. Tho Comptroller has indicated some amend ments to the law which the Secretary concurs with him In regarding ad important to its =cress. As among the most essential of these, the Secretary asks the special attention of Congress to the propositien for a uniform rate of interest, end the repeal of the section which connects the issues of notional curren cy in any degree with State banks. The Sec n=ary also rerommends,sa likely to be useful, • provision to be made by law for the deposit with national banks, and also with the Treas urer and Assistant Treasurers, araueh rates of interest and for ouch periods of time as the Secretary may proscribe, of moneys paid into or invested under the Orders of judicial courts. It Is not impossible that in this way many millions would be placed in the treasury at moderate rates of Interest. • ISCIIILLSZ or nrrtzs on BANC 0010 =MLA.. TIM The Suretary tun already referred to the recommendation of the Corosessioner of In ternal Revenue, in favor of Increased deities. He cannot add anything to the general con siderations he bas already urged In favor of augmenting revenue by these methods. It may be useful, however, to invite special at tention to some considerations which enforce the recommendation of a duty of 2 2-5 par cont a year on corporate note circulation. The propesition contemplates t duty. of one-Afth of ono per cent, per month on. chin. tattoo; and the Sweeter, suggests, in addi tion, one twenty-tifth of one • per cent on do podia in each month, mating twelve twenty ffths a year. Under the existing law the duty on circulation is one per cont, a year on a cer tain proportion ; two per cut, on amounts ex egedMg that proportion, andone,fondh of one por cent. on: &multi. The email addition . proposed will not be regarded as .unreasen able or onoions, when. it is considered that _ all corporate circulation Is in foot a 1 0w...5. qko people to the - banks without. Mt, -that of . preparation, and wittthat PAW opt the ' dudes imposed on QIIOStiOn then lIMOITINII ifoty:proposed.Ad,dett -to I: and the coat of ______ Talent to 'OHO-Interest be' Ohonlll o * l4 v r inseonible conWinut tare. Th.* 40004 4 4 1 gd 3 lightertorpinisug irk* abas " ' :: 41 0 4 0thAir #44,), - • 0. th.ve g tie 7 can 2 , r/lE • "deautrlir NW ...c...~...::~::i~~.~ ' •r'ru~.i... , f -- ...- -r--,~~:~ profits. rather than on property, will 1111 tribgto itself among all who partake of a. benefits of tho deposits,and press hardly C. none. • • -• It is priposed to make LbeAuty payable it smell pererrames,becztaitilivill.b• tints IL tributed over the hilliness. of theyakr aclO because by requiring monthly returns of ell culations and depositsceith reference in th. duties, information will be regularly obutina io respect to the amount of circulation of al descriptions in the siholo country, the path cation of which will be, an important benefit to all men of business, as well as a valuable guide to financial legislation and admlnistra lion. Monthly returns are now required of man, of the national banking associations, an, should be required of all ; and from them, e. well as from the banks not organized undr national legislation, should be required a fn't contribution to the general burdens of Its people. The Secretary refers to Congress th. question. whether the duty on national cur rency and the deposits of national banking associations shall correspond with the duties on other circulation and deposits. lie thiaks that for the present, at tenet, some (Herrin:Li nation in favor of the national associations may be properly admitted in consideration of the indispensable importance of a national currency, not adapted only, like United States notes, to temporary emergoneies,_, but perma nent in its very nature, and adequkte to all de mands of business, and capable, at no distant period, of being made equal to and convertible into coin; and therefore its real repressenta tire and equivalent. The operations of the mint hare been el less importance than usual during the last Sear. The amount of coinage was increased Over that of last year at San Francisco alone. The value of the bullion received won. $24,824,- 101 31: in gold 52.3,140,49.5 41 ;and in silver $1,674,00.5 90; from the total of which most he deducted the bars made at one branch and deposited for coinage at another, making the actual amount deposited $23,701,837 .11. The coinage of the year was *24,088,477 12: of which 220,095,852 weN gold coin ; $1,249,- 077 110 gold bars; ;1,174,002 80 silver coin : er:320,204 42 silver bars; and $476,450 cents. Of this coinage 54,184,407 37 in 42,108,402 pieces was effected at Philadelphia ; $18,531,- 528 tr. in 2.872.173 pieces at San Francisco; and $2,157,042 62 in 3,104 gold and silver bars at Now York. The branch mint at Denver has been or ganised and patina operation during the year but its operations are confined, for the pre sent, to melting, relining, assaying and stamp ing bullion. A report has been made on a Site for a mint in Nevada, and measures will be taken for its establishment as coon as possible. The Secretary renews the recommendation of preceding reports in relation to the univer sal measure of commercial values by an in ternational decimal coinage. OrrIIATIONS or Till TRE..13111, The operations of . the treasury proper have reached anpreeedented magnitude. These are conducted under, the direction of the Beery tary, by the Treasurer, the Assistant Treasur ers, and the Designated Depositaries, by whom moneys which come into or go out of the National Treasury are received and die burled. As receipts and payments have in creased in number and amount, and assumed new forms, the !shore and responsibilities of these officers have taken raster proportions of magnitude and importance. The general operations of the year are seen in the state ments already made of Receipts and Brpen ditures, but.no general statement can convey an adequate idea of their variety, extent, and perplexity. The labor, and care, and.anxiety Incident to the borrowing, receiving, and pity ing of the sums necessary to meet the debt becoming due daring the year, or, in ether words, the making and applying of the loans oecesoary to the renewing of maturing leans, make little show in the Report, and yet em brace transactions, often complex and neces sarily multitudinous, which reached, during the year, $u aggregate of more than a hnn, dyed and eighty-one millions of dollars. The responsibility and labor of the whole money operations of the Treasury may be Inferred from this statement concerning a comparative ly small part. The receipts at the office of the Treasurer in Washington dining the last Liam] year were $1,348,029,513 93, and the disbursements $1,334,615,175 57. At the office of the Assist ant Treasurer in New York the receipt, were $637,051,546 i 3, and the disbursements $622,- 842,627 82. At the office of the Assistant Treasurer in Boston the receipts were $llB,- 900,000, and the disbursements $115,750,000. At the office of the Assisting Treasurer in Philadelphia the receipts were $113,249,- 031 27, and the disbursements $109,733,. 546. 03. The receipts and digbursements at the offices of the Assistant Treasurers at San Francisco, and St. Louis, and of tho Designated Deposit ories, especially at Baltimore Cincinnati and Louisville, have been largo beyond precedent, imposing labors and responsibilities corres pondingly large. The Secretary cannot ex press too strongly hie satisfaction with the manner in which these offieert have generally performed their onerous and multiform duties. ItuICLATING COIMERCLAL INTEUCOIISSE unarm TDC LOYAL AND DISLOYAL STATIS. The act of Congress relating to captured and abandoned property, approved Mulch 12, 1803, and the proclamation of the President of the 31st of the same month, devolved upon the Secretary the duty of regulating commer cial intercourse in conformity with the acts of July 13, 1801, and May 20, 1802, and under license of the President, between the States declared to be in insurrection and the other States at the Union; or, to use the description commonly employed, between the rebel and loyal States. This duty has been found ex ceedingly arduous and perplexing. Prior to the act and proclamation of March, the Secretary had attempted some restrictive regulations with the view of preventing sup plies to rebels; bat the state of the law, and the terms of the original proclamation, =Ude it difficult to act with much of or use fulness, and the regulation of the trade was assumed almost exclusively by the military authorities. Immediately, however on the publication of the proclamation of If:nth, the Secretary issued regulations of trade, framed on the best information and with the best consideration he was capable of giving them ; and earnest and persevering endeavors were made to bring the whole subject under their control and cinder proper supervision. tExpe rience revealed defects in the regulations,and they were revised, amended, and republished in September last. The subject is too vastand complicated,tbe appetite for trade is too eager and exacting, and the impatience of all restraint, however salutary or necessary, is too great, to allow any hope of avoiding many and sometimes just conotluots. But the Secretary has kern steadily r the plain daty preetribed by the law oPtillimentingany 'applies from being carried intedistricts controlled by rebels; the equally plain duty of allowing and securing, so far as practicable, without intercourse with rolools, supplies of necessaries to the inhabi tants of &Striae in which the-rebellion has been suppressed; and the clear policy of sup porting and facilitating the 'efforts of loyal citizens to obtain wherever obtainable, with out going beyond the linen of national mili tary occupation, cotton, sugar, tobacco, tai, rosin, and suck other products of the rebel States, for the Benefit of loyal commerce, To this end he has selected persons of known in telligence and probity as supervising special agents, and through them others of like characters as assistant and • local special agents, to CIO/Gide the necessary Rowers over intercourse, end has imposed, with the sanc tion of tho President, and as conditions of license, such fees and contributions on the trade permitted, as wen thought necessary to defray the cost of supervision, and add unite thing to the means for the prosecution of the war. The agents of all grades have gener ally beta diligent and faithful in- the dis charge of their several duties. A. few of sub ordinate grade have proved bteompetout unworthy, and have been dismissed; 'and the same measure will be promptly applied to all, of whatever grade, to whom peddle duty may require its- applicalion. snammnsto marravzons, Lc, Le TIM tants- 122112=2 By an order of the Secretroy. of War issued on the hat of October last, the care of-aban doned plantations and other reel estate ... PA.. been devolved upon the superelaleg amts, who have been instructed to accept the charge and roe their best endeavors in its execution. The charge of abandoned tads and plants, lions necessarily carries sith it, some .... .toist, the charge of Madman. -:, The whole chsug• Is 4 . Present under min_ rarY4_ __ tion ,.. l7; for the acts of,- Congress sE s , L uedoned property retai n cub. 2 , 11 ,.- t o poncmaltY• Abe order is of too re. •-.- ..., data to allow receipts of roma concern ini . in, praCtical effects. It is only very. clear that geese system should be adopted and &ton do.puzsued, which will best. serve Um' great: obJectir of restoring tranquility, order, and, prosperity to the States and parts of States in which the national authority is or maybe: is establiehed, and atthesame timeseeurip,„o„; ' 1 .... and welter* , of. the .loysi:and * fa n _ psaple4-1..T0 thatee,Matteihc labors 'or e mmiasioners of Direct Taxes ° action ma . the ' al 11-61111 ' ender e sets -twitting. to ed._ ... 't e a VY I/ 010ipsileo. 4 . ii 'lM"'Vii," Sheer: , .. .„4-texes,t, e..... 1.k.....dri5.,....bing0.4-"-.-.".r.!..-,,..-efte---..