[Continued from the Second Page]
stall ba insufficient for the purpose, the pub
< £o faith is-pledged to make up the deficien
ts hut ifit should be more than sufficient
the surplus shall be applied to the making
provision for the comfort of dis
shled officers, Beamenand marines.” 1
"he efficient and aotive vigilance ol the
navy in capturing prizes, and the prompt
ness With -which their adjudication has been
S? , ce ° > kas placed In the treasury a fund
the,income of which is more than sufficient
to pay the pensions at present rates. Fur
„ th®* 1 legislation is therefore required in or
der that “the surplus shall be applied to
the making of further; provision for the
comfort or disabled officers, seamen and
marines.”
The subject is submitted for consideration
that the necessary provision may be made
- to carry into effect the pledged faith of the
government.
PENSIONS.
On the first of November last thepension
Toll waa as follows:
1 j 057 invalids, with annual pen
' ■ . .eiona amounting to - - 578,637 05
widows and orphans, annn
• ally receiving - - 192,102 00
2,265 persons receiving a total an
; nual amount of 1 - -§270,739 05
' This amount wilt be some what increased
by virtue of the provisions of the acts of
Jane 6 and July 25,1866.
COMPENSATION OP CLEBKS,
The compensation to the clerical force of
the Department is small for the service
rendered, and insufficient for the support,
in a manner becoming thpif position,
or the clerks and their .families
-“ii P er s°ns who have fixed incomes
are injudiciously affected by our expanded
currency. With the ruling high prices for
rents and the necessaries oflife, the struggle
of suoh as have low salaries and dependent
families is extremely severe. A fair com
pensation on the part of the government to
those who faithfully serve it is undoubtedly
the best policy.
An extra allowance, if made to the em
ployes of any department, should be ex
tended in like manner to the clerks in the
other departments, who are as faithfal and
as meritorious, and subject to the same ex
penses as those who have received the spe
cial benefaction of Congress. The discrimi
nation which is made is not only invidious,
bnt in its effect most disconraging upon those
who, while laboring with equal fidelity and
assiduity in similar positions, are denied cor
responding remuneration. No money of the
government is more judiciously expended
than that which is paid to the capable and
faithful clerical force in the departments;'
and that of the. Navy Department I earnestly
commend to the special consideration of
Congress.
EXPENSES AND ESTIMATES,
The available resources of the -
department for the fiscal
year ending June 30, 1866,
■were ... - §142,291,919 40
Expenditures, -
heaving a balance at the com
mencement of the fiscal year
of - ' - - - -
The appropriations for the cur
rent year amout to -
Making the total available re
sources for the fiscal year
;.. ending Jane 30,1867,. - 117,644,060 48
As several of the bureaus will have un
expended appropriations-, which will be
ample for some time to come,they have made
no estimates fbr the fiscal year ending June
30,1868*-
_ The following amounts were asked for :
Pay of officers and men of the
navy, ' -
Pay for labor and superin
_tendence in navy yards, - 7,976,192 00
Bounties to discharged seamen, 500,000 00
Navigation, Naval Academy,
Observatory, &c., - -
Magazines, &c., .
Surgeons’ necessaries and hos
pitals, - - - ' -
Contingent expenses,
Support of marine corps,
Total, §23,568,436 16
The large unexpended balance in the trea
sury at the close of the last fiscal year is em
braced in appropriations under more than
one hundred different heads. Many of
these are continuous, have been made for
years, their expenditure will be pro
tracted through years to come, and.
though assisting to make np a large
balance, cannot be dispensed with.
There are large amounts, however, under
the heads of “construction,” “steam engi
neering,” “ordnance,” “provisions and
clothing,” and “fuel,” which can with pro
priety revert to the treasury. No appro
priations under these heads were made for
the current year, and for the ensuing year
. none are asked. In the course of time the
appropriations would be exhausted, but it
ib not believed to be in accordance with
sonnd public policy in time of peace to con
tinue suoh large amounts at the disposal of
the department.'
11 Liberal appropriations for the naval
service were made during the exist
ence of the war, but the funds of the de
partment were always carefully and eco
nomically expended. This feet is attested
by the numerous olaims of contractors for
relief now before Congress; and the result’
is, that the department is able to complete
all the vessels and engines contracted for
before the close of the war,’ and designate
appropriations to the amount of about fitty
millions of dollars that can be relinquished
to the treasury, or may be otherwise dis
posed of by Congress.
It has heretofore been deemed essential to
correct administration that there should be
annual estimates for proposed expenditures
and specific appropriations therefor after
examination by Congress, and this
menthas no desire to evade this annual
scrutiny.
Tan BUREAUS.
The reports of the several chiefe of bureaus
and of the colonel commandant of the ma-r
eo /R?. “J® appended, and are referred
to for full information of the operations of'
their several departments. A brief abstract
only can here be given*
The chief of the Bureau of Yards
and Docks giv?a in detail a statement of
the repairs and improvements at the
navy yards, the present condition of the
work and his views of future wants The
expenditures for permanent improvements
were necessarily small during the last four
years, and now that the war is dosed, it is
thought to be sound policy to supply many
of the wants and correct the defects which
a state of war has developed. The Ports
mouth yard has been extended by the pur
chase of Seavy’s island, and arrangements
nave been made, subject only to a grant of ‘
jurisdiction by the New York legislature,
for extending the Brooklyn yard 'by incor- ■
porating into it property known as the
Baggies estate. The means for executing
at the Philadelphia yard are very
limited, and, in consequence of the want of
■shops and machinery* large quantities of
work have been done in ; private establish-’
ments which could have been performed
more economically, and perfectly in the'
navy yard had the facilities existed- Tt"
is a lso recommended that that ttfe wash
-be extended by : the
purchase of additional property. “Four
wt^. e ?°i an ? s have been admitted
to the Naval Asylum during the year* nine
bave died, and one has been sent to the In-
Total number on the rolls,
3!!SSS “ d
NsnHL?A S i BrVatory ’ H y dro g r aphio Office!
Nautical Almanac and the sohool for naval
apprentices, and a survey of oreratioM ta
©ach of these departments is given in the re-
port of the chief of the bureau. The subject of
the local deviation of compasses, arising l
■ from the use Of large quantities of iron in
• the construction of vessels-of-war, is occu
pying the attentipn-of the bureau, and the
1 results of some important observations will
soon be made public. To collect data for
this purpose, an officer was' especially sent
to San Francisco in the iron-clad Monad
nock. A Hydrographio Office has been es
tablished in this city,- -under : autho
rity of an aet of Coqgress passed
at its last- session. .It 'will .be
the central-depot from which charts’
sailing directions and nautical books
in general will issue. The new' buildings
for the Nava! Academy authorized by Con
gress will soon be other- im
provements have been -completed' The
Superintendent-of the Naval Observatory
reports that there has been added to the in-
Btrumentsof that institution a great Transit
Ciiolei which restores the observatory to the
rank, of a first-class institution, and will
largely extend its sphere of usefulness.
The result thus far of the naval apprentice
s ?^. en i. haa nGt ' 111 opinion of the chief
ot the bureau, disappointed, theexpeotationa
; .of ite most Banguine advocates.
of the Bureau of Ordnance re
ports the sale, durihg the past year, of Un
serviceable cannon and'surplus powder to ■
the amount of =5337,364. Other ordnance
material which the close of the war has left •
on hand, and is not needed for the present or
prospective wants of the squadrons, will he
disposed of, . So states that the most satis* -
lactory results have been attained with cans
cast either solid or hollow,' and nothing has
transpired abroad, in the efforts to produce
a Bteei or ateepand wrdught-iron gun better
than ours, to. induce a fear that cast-iron
ordnance will be surpassed in any essential
of endurance,eltheras smooth-bore or rifles..
In gun carriages a decided improvement
has been niade in the substitution of iron .
for the cumbersome wood ones so long in
use,and a carriage has recently been designed
upon which a fifteen-inch gun can be safely!
handled in any weather in which an action
may be fought at sea.
Th.e chief of the Bureau of Equipment and
Recruiting reports that seven fiUndred and
thirty-one tons of hemp of a value of $296,-
489, have been used at the government
ropewalk ’at Charlestown. A board has
been organized' to examine and test the
comparative strength of wire and hemp
rope, with a view to its more general intro
duction into the navy, should the report be
favorable. It is believed that by the use of
wire instead of hemp rope, a vessel of the
Wabash class will be 'relieved of over four
tons’ weignt aloft, and that there will be a
large saviDg in the original cost, as well as
increased durability in the rigging of a
vessel. The coal contracts for the current
year are for 40,069 tons,delivered at Phila
delphia,at $5 61 per ton, , and. 12,000 tons
delivered at New York, at $7 28 per ton.
But little coal has been sent abroad during
the.year. Especial attention is' invited
to the suggestions relative to the enlist
ment of seamen, both for the naval and
merchant service. •
The report of the chief of the Bureau of
Construction and Repair is .chiefly occupied
with the prospective wants of his depart
ment. To ffiace the government dock-yards
in such a cpmdition as the experience of the
past few feaiß has shown to be necessary
lor efficient-service, will require the erec
tion of a numbers of new buildings.
The vievfs-pf the chief of the bureau
are detailed with ' some minuteness,'
and should . command attention.
During the war it became necessary to
build many vessels of unseasoned timber,-
but such vessels are of short durability, and
true economy will be consulted by laying in
for future use a large supply, particularly
of oak and yellow pine timber. Special
appropriationsa few years for this purpose
are recommended. During the year the
force in the naVy yards’has been princi
pally eagaged in placmg in efficient condi
tion the vessels which had been almost
constantly employed during the war, and
but little progress has been made upon the
hulls of the new vessels.
43,3241526 42
98,967,392 98
18,976,667 50
- §10,826,280 00
612,239 15
80,000 00
386,513 00
- 1,592,000 00
- 1,595,212 01
The chief of the Bureau of Steam Engi
neering reports that no new work has been
undertaken during the year in his depart
ment. All the new work under construc
tion was commenced before the close of the
war, and a number of engines are now com
pleted, for which the vessels have not been
commenced. This will be taken off the con
tractors hands and stored. The machinery
for the Idaho and Algonquin, designed by
E. N. Dickerson, has ' proved a failure in
each case, and been rejected. As the navy
is almost wholly a steam navy, it is sug
gested that increased facilities be afforded
lor the construction and repair of steam ma
chinery in onr navy yards, and to this end
estimates, amounting to about one million
and a half of dollars, are submitted. The
chief of the bureau suggests that in view o
the importance of the engineer corps, the
rank and pay of engineer officers should be
increased; also that the age qualification for
cadet engineers be extended to twenty-one
years.
,The chief of the Bureau of Provisions and
Clothing calls attention to the very great
evils ©f the present system of supplying a
sailor with his outfit. The market rate for
the various articles he is compelled to pur
chase is now so high than when a sailor has
received his advance money, and drawn his
clothing and Bmall stores, he finds a debt of
about a hundred dollars standing against
him, which he cannot expect to work out,
after leaving a half-pay allotment for hfe
family, in' less than a year. The chief of
the bureau recommends the erection of ah
additional storehouse* at a coat of §150,000,
upon the new purchase at Brooklyn,known
as the “Buggies property.”
The chief of the Bureau of Medicine and
Surgery calls attention to th& nedessity for
increased hospital accommodations at the
Naval Academy, Annapolis, and suggests
that i a 'sufficient sum be appropriated to
purchase a proper site, andto erect a hos
pital commensurate with the necessities of
the institution. He represents .the hospital
now in use as wholly insufficient for the
present number connected with the acade
“y-He 'also urges .an' appropriation, of
?150,000 additional to the amount already
appropriated to build a hospital at Mare
, Island, to.answer the growing necessities of
that.distant station. He represents that the
building in which the. naval laboratory is
carried on is small,-and so inconvenient as*
to seriously embarrass its operations; that
the machinery, ‘apparatus,' manufacturing
department, store-rooms packing and dis
pensing rooms, are all crowded inone small
building. He submits an estimate of $3O -
,000 for.additional laboratory acoommoda- ;
tions. Interesting tables connected with
the casualties of the navy during the rebel
lion, and showing its sanitary condition
are given. The number of persons wounded
during this period was 4,030, of which 3,-
266 were from gun-powder,4s6 were scalded
■in battle, and 308-drowned in battle. ■ The
casualties incident to service in thenawmot
connected wltbbattie during the same time,
were 2,070. The aggregate number of
deaths in ihe navy from casualties of ail
kind duripg tlje rebellion was 2,282, as fol
lows: from_ gunshot fractures, 495, from
gunshot flesh wounds, 1,309; from incidental
373; died m rebel prison pens 95
The colonel commandant of the marine
. corps reports that at his annual inspection
he found good order and disoi-
P 11 ”®. sufficiently . marked to reflect
credit npon both officers and man
SalteS t * e strength of The
Is attached to vessels upon foreign service
the remainder is em ployed in guarding the
navyyards and naval magazines, and being
instructed m the duties of soldiers. Ho dif
ficulty is experienced in getting
number of recruits. and of* betterclass than
formerly. The commandant of the carps
recommends that new barracks be ereoted
in Washington to displace those at present
occupied, which were erected in 1805, and
tRS BIIIY EVENING BTOLETINT IPHIIiAIiEtPHU, TBESBAY, „ W
besides being dilapidated and not adapted
to the heaUh feed comfort of the men. are
wants
of the service., It is also recordodeiided that
steps be taken towards secariag. a convey
? s^ e for-to©niarine barracks at Nor
*plk| there are, lio suitable accommo
dations for the marines. Attention is called
to the fact that, although < the corps is a mili
tary or gaDization numbering some thirty
six hundred men,itecommandant holds but
the commission of a colonel. Strong interest
is felt that the. grade of brigadier general
should -be conferred upon . the highest
officer lh'a corps whoße numbers and ser
vice-would jfeern, to * justify; it, particularly
at a time when, so , many 1 army officers are
honored-with that ,position.
__ v, ■ : CONCLUSION.
’• I baye in this report presented to you,
and stated for the information of Congress;
the present condition of our naval 1 fordo at
home. where its preparation for efficiency is
still proceeding,' thongh on ■ a - properly
reduced : scale, and . 'its \ arrangements
and operations ' abroad,: where; follow
ing in the track of our expanding com
: merce, it keeps faithful watch over our
national interests and honor. I have
added to this description such suggestions
as I deemed most worthy of favorable cpn
f sideration, looking, with a due. observance
of economy, to further improvement of its
organization. The calm whichsucceeds the
great tempest through which our country
has: passed, gives me the gratify ing oppor
tunity, while stating the movements iof our
naval force in distant seas, to suspend dor
this year the five times resumed narrative
of its. mighty growth and ever, memorable
achievements.: -Yet in closing: this report
I again exhort-the' government and the
country to realize promptly and prac
tically that the maintenance of our navy in
an amplitude of power adequate' to any
emergency, is intimately blended with
our hopes of lasting peace, with the aug
mentation of our vast' commercial 1 enter
prise and prosperity, and, above all,'with
that grand and imposing naval renown,
which has come in Our age to be: manifesto
the surest and the cheapest defence of a
great nation, Gideon Weli.es,
Secretary of the Navy.
To the President.
Keport of the Secretary of the Treasury
Tbkasoby Deeabtjeent, I
Washington, December 3. lSg3. /
In conformity with the requirements of law,
the becretary has the honor to make the follow
ing report, > . „
v. ln under date of the 4th 6f Decem
ber, ]E6o, the Secretary estimated, according
to the data furnished him by this Department
and by the other 1 epartments, that the expendi
tures of the government for the three quarters
of the fiscal year ending June SO, 1860, would
exceed the receipts $112,191,917.20. The result'
vas widely different. The receipts exceeded the
estimates 559.900.905.41; the expenditures fell
short of the estimates $200,529,235.30. Tne fol
lowing statement exhibits the Items of increase'
of receipts and decrease of expenditures In com
parison witn the estimates *
Statement of the estimated and actual receipts
ana expenditures United Slates from
October 1, iSfio. to Jane 30, 1869:
EECEIPTS.
_ . ___ Estimated. Actual.
Customs.... -$100,000,000.00 $132,037,0^8,35
Land 8.............. 500,000,00 53^110.10
internal revenue 175.000,000.00 212 607 927 77
Miscellaneous 30jj00.000.00 45,255.125;90
Direct tax....._ 1,913.012.82
Total
CasfibalanceOctober
1,1865
67,158,615.44 • G7.158.515.4J
Customs....;-..
.Lands;.:
Internal revenue—
Miscellaneous
Idrect tax ......
—- 559.905.905 4i
EXPENDITURES.
, Estimated. Actual.
Civil Service $32,991,052 38 SSO.iSS 500 55
Pensions ana Indians. 12.256,780.91 11.06L255 79
War Department. 507.788.750 57 119.650.161.50
Navy Department 35,000,000.00 26 802.710 31
Int’est on Public Debt 96,813,868.75 ,96 89^260.19
Civil Service
Pensions and indisins.
War Department
Navy Department
£fdn«'aefi=iencvln-^Umat«ior Sm ' G 2 6
Interest on public debt,
EECAPITULATIOK.
Actual receipts, in
cluding cash balance $162,564,420.88
Estim’d receipts, in
cluding cash balance 372,658,615.44
Excess of receipts over estlm's....... 80,905,905.44
Estlm’d expenditures 484,853,462 64
Actual expenditures : 254.524.i27.34
Actual expenditures less than
estimated 200,529,28530
10183 $290,435,140.74
The following Isa statement of receipts and
for the fiscal year ending June 30,
Bale nee in Treas
ury, agreeable to i
warrants, July 1,
1665..................... 5555.509.15
To which add bal
ance of sundry,
trust funds not In
cluded in the
above balance...... 2,217,732.94
Making balance, July 1, 1860. In
cluding trust land
Receipts from leans
Receipts from cus
_tOms..-. 179,016.651.58
Receipts from lands 665,031.03
Receints from di
rect tax 1,971,754.12
Receipts trom in- >• ,
temal revenue..., 309,221,813.12
Receipts from mis- '
cellaneous sources 67,119,369.91
: 658,052,8a).08
T0ta1..........
- «... 1.273,960.215.20
_ expenditures. ,
Redemption of public debt.. 8620.32L725.6i
For civil service.... 41,056,861.64
For pensions and -
_1nd1an5.....„........... 18,852,416.91
For the War De.
apartment....—...... 284,449,70L82
For the Navy De-
partment.
For interest on pub
■ He debt •; 133,067,741.69
43,324,118.52
Leaving a balance In the Treas.
Tho^iwKf Bt 1 day °f J qI V,IBSB. : *132,887.549.11
_ l~ e following la a statement ol tile receipts
tembfrsTlMß- 168 *° r ttie I narter ending Sep-
Balance in Treasury,
agreeable to warrants
. ..
Receipts from customs 50,843,774.24
Receiptalrom lands..... 228.889 72 .
Rectiptsfrom direct tax 840,454!89
Receipts from Internal . . .
99,166,993.98
Receipts from,miscel»; > ; -
laneous sources I ■ 7,981,76124 ( ■ '
' • i ■:» ESPENDiTOKES, :
For the redemption of".'
• thepublic deb,t....'......243,782, 833.44
FoJ^l^lfe'W 6 - 44
Fo^e'-W^ep^:- 11 ' 787 ' 975 - 66
; men) ; 13 BS3 214 AS
‘For the Nfivy Depart •
. ment,
For interest on the pub
lic debt..::...............;;'... 33,865:899.99
Leaving a balance In the Treasury
on the first day ofOctob9r,lB66,of 8142,418,789.19
The following statement exhibits the Items of
increase and decrease or tbe public debt for the
fiscal year ending June 30.1868: • ’ - '
Amount of public ■ - 1
Am^n'tTcaahm 22 " 682 - 593 ' 026^
Treasury 858,309.15
Amount of public debt, June 30,•
ai5.500.000.00 395.405,905.1;
5ara.655.515 44 5462.564.420.5 S
, Excess receipts.
■ s32,oJ7,fM>s 55
—• ' 32,140.40
....—. 57.607.927.77
18255.125.90
1,943,612^2
$184,853,462.61 284,324,227.11
iZccc&SQf estimates.
52^08^51.53
: 1,195.505 15
155.705.256 07
8,197,253.60
80,381.44
8200,629,245.30
£3,076,042.90
712,851,503.05
520.750,940.48
...... £1,141,072,668.09
158,561,386 57
.....465,460,557.92
7,878,609.17
323,041,768.73
Treasury. :132,887.549,U., .
0t p l blld debt, Jane 30, ■ V. ,
1866, less cash in Trea5ury.........82,650.538, 330.10
July at, 1841, and
•i iA&lfli 15,: ». , $116,139.77
Treasury notes, 8 per.
>--t cent., acta Uecem
her 23, 1857,' and ■ 1
1861, 2,200.00
Bonds, 5 per cent., ...
; act September (9, ,; r . ; : , -
j.-1850, (Texas indent-: - ~1
• 283,000.00 ' '■
Treasury.notes, 7-30, : ; . ..N;:. -
July 17, 1861,....., 380,750.00
Certificates of lit* ~ - ■
debtedness, 6 per
i cent,, act March V
:_1802.89,381,000i00 ' ':
Treasury noteSi 5 per ■■
cent; one . and
twa-year, act
38 ' 8841480 - 00 '
- est notes, 6 per
cent,, act, June 30. , , ~
..... 31.743.9t0.00;
-Bonds, 5= per cent.,
_act March 3,1864....... 1,551,000.00
united States
notes, acta July
17, 1861, and, Feb
ruary 12,1862.„
united States
■ notes, 'acts Feb
ruary: 25, July. 11,
• J§62, an<t Maroh3,
; 82,068,760,00 .
roatai currency, act
rw? y «i? ,:I nS? • 2,884,707.88
Casb in Treasury. - ;
■ Oternaei...: ...... 132,029,239.96
8332,525,658.61
From which deduct lor Increase, by ■
Bonds, 6 per cent., acts
July 1, 1862. and July
2, 1864, Issued to Cen
tral Pacific B. B.- Co.,
<tc„ Interest payable
In lawful money $4,784,000.00
Treasury .notes, 7.80,
acts June 30,1861, and
Match 3,1865, Interest
payable In lawful
money
Temporary loan, .4, 5,.
and 6 per . cent, acts
July 11,1862, and Jane .
SO, 1861....™..; 30,459,135.25
Gold certificates, act
March 3,. 1863
Fractional • currency,
act March 3,1563 4.949,756.08
Bonds, 6 per cent., act
July 17, 1861 H 6.050.00
Bonds, 6 per [cent., act
March 3, 1861 3,852^00.Q0
Bonds, 6 per cent., act
June RO, 1(64 8,211,000.00
Bonds, 6 per cent., act
March 3,1865 103,542 500.00
Ivetdecrease 31.196,387.2 .
The following statement exhibits the items of
Increase and decrease of the public debt for the
foormonths from. June 30,1866,t0 October 31
1866: *•
of public
dobt, June 30,1866 $2,763,425,879.21.
Amountofcash In .
Treasury 132.857.519.il
Amount, of public debt, June 30, .
• 1866. less cash in Treasury .U $2,650,533,330.10
Amount of public
debt, Octi 31,1866 $2,681,016,966.81
Acid amount of old
funded and un
. fended debt. In
cluded In debt of
June 30,1866, not
in statement.
T0ta1..,.;..... 2,681,7a,05L82
Amount of casii in
Treasury
Amount of public debt, Oct. SL '
1866, less cash In Treasury......... $2^51,421,121.2)
—839.1U.20S 90
Which decrease was caused as follows, by nay
meets— J
Bonds, 6 per cent, act July
21; 1841, and April 1A 1542 514,509.00
Bonds, 6 per cent,act Jan-
1847 1,672,450.00
Bonds. 6 per cent., .act
March 81.184 S
Bonds, sbercent. act Sep
tember 8,1850, (Texas In
demnity)
Bonds,' 5 per cent., act
March 3.1864, (Ten-lortles) 149,750.00
_ 2.629,100.00
Treasury notes, 6 per cent., acta
December 23, 1557, and March 2.
1661,.: ! ?
Temporary loan, 4,5, and 6 percent
. acis February 25, March 17, July
11,1862, and June 30, 1861
Certificates ol indebtedness,6 per
cent., acts March 1, 1802; and
March 3,1863 26,209.000.00
Treasury notes, o per cent., one
and two year, act March 3.1863 500,000.0,1
Treasury notes, 7-30, act July
17. ISel 11,200.00
Compound Interest notes, 6 per
cent., act June 301861....
Treasury notes, 7-30, acts June
80,1864, and MarchS, 1865............ 82 217 250
United fctalcs notes, acts July 17.
1661, and February 12, 1862:.....
United Slates notes, acts Feb
ruary 25, 1862, J uly 11, 1862, and
March 3,1863.. .10,691,779 00
Foetal currency, act July 17.
1862 ■ ’
6r068 decrease 203,652.312.51
From -which deduct for Increase of debt and
decrease of cash in Treasury :
Bonds, 6 per cent, act
July 17.1£61.„ 87,050.00
Bonds, 6 per cent.,
act March, 3,1865..., 101,738,500.00
Bonds, 6 per- cent.,
acts July 1,1862, and
. July 2, 18&1, Issued
ito Central Pacific ' .
Railroad Company,
<£c„ Interest pay- ,
able : In . lawful
m0ney...... -3,840,000.00
Gold certificates, act .
-MarchS, 1863...,, 183,800.09
Fractional currency. .. . "
actß March 3. 1863,
and June. 30,1864. 1,208,165.12 c
Caahin Treasury, de
creased , ..... 2,560,588.49
59 9 f114.2Q5.90
ThdollowlDg tttatement exhibits the items
of i ® cr ®a*e ana decreese of the public debt from
{>|ebeat point, August 81,1865, to October 31,
Amount of public ,
i debt August 31,
1865, 88 pet state- , . , .
A '«atnt ......... 52,815,907j#.56
Amount of old
a funded:and un
funded debt........
. 114,115,48
——82.816,021742.04
Amount of cash in Treasury 88,218,055.13
Amoun t of publlo debt A ugust 31,
• ISCo. less cash In Treasury.,.. £2,757.803,688,91
Amouni of. publlo . , •
■debt October 31, , . ,
1866, as per state-, 8,,
8 ment.. $2,681,636,966.34
Amount. of old
funded, and un
funded'debt....
Amount of cash in Treasury.
Amountbf pnbH6debtOotober3l,
cash In Trea5nry........;i|2,551,424,12l' 1 2a
1 206,870,565.71
decrease /was caused as follows by
aucf incretis&ofccLshiii Treasury*.
vS??5 8 »? P er cent »vaot January 28, ;
• 81.672,450.00.
Bonds, 6 per dent;; acts July 21; 1811,
_;Bna ; Apriii5, 1842.u.i;..............t.'._.i 144,039,77
Bonds, 8 per cent;, act March 81, .; 617,400.00
’ 1,700,750.00
Bonds, 5 per cent., act March3,lB6l, v 455,000.00
Bonds, o percent, act September 9,
: J^Tex'as , 'lndemmty,........4ss,ooo.oo ■
Treasury notes, 6 percent,, acts De
.cember 23,'4867, and March 2,1861;' • 1 8,200.00
Temporary loan,- 4,5; 'and 6 per .
: cent., acts February 25, 1862, and.'
. JuneBo, .1864.;....;....;............,;....'.;...; 62,146,714.27
Certificates' of Indebtednesses per
cent.i sota Maroh 1,' 1882, and :
3', 1863..;.....;;.,;;.........;..84,911,000.00
Treasury notes; 5 per cent., one and
_*wd years; at Mar0h5,1865..i...;...-.. 31,000,000.00
Treasury notes,'7-30, sot July 17, •
“61 ...i 295.100.00
Ooxupond Interest notes, 0 per
cent., act June 30.1804 68,512.020.00.
Treasury notes, 7-30. aot June 30.
1864, and March 3, 1865 105,985,700.00
United States noteß, acts July 17,
aoo;4n.oo'
134,611,150.00
10,713,180.00
185,547,221.33
—— 115.782,059.00
—.301,329.271.31
114,115.48
130.526,900.62
617,490.00
175,000.00
75,172,997.76
io;50o,ooo.oo
691,031.75
109,533,103.0
114,115.48
>2,681,751,081.82
130 326,960.62
tt lB ,? l ’a£ d February 12,1862
“W? 1 ? “ otes - aew February
>^,J 862 . Jnly U, 1862, and March 3,
JujylifrimC 3!029’739.‘63
suspended, requisitions ; 2,m;ooo.OO
T0ta1...„
Increase olwggh in Treasury.',',
Gross decrease.
From which deduct for increase.
Bonds, 6 per oent.,
. acts July 17 and Au
gust 5, 1861.. $114,750.00
Bonds, 6 per cent., act
..March % 1864...... 3,882,500.00
Bonds, 6 per cent., act '
8,2u.q00.0a
Bonds, 6 per cent., act ’ -
1865 ~- 205,281,000.00
Bonds, 6 per cent., acta
. July l,lB62,andJnly
2,1864, Issued toCen
. ~tral Pacific Railroad
Company, &c.. Inter
est payable. In law
.• numoney
Fractional currency,
, acta. March 3, 1863, .
and June 30, 1864. 4,273,007,45
Gold, certificates, act
hfercb, 3, ’63 ....... 10,896 980.00
;fI6Cr6fIBO M , M „„, MM „„ ' " IWfift !?7Q Ue >t»
tChesQ statements are in thA highest decree
T faeyar * ocmSS^RSdSSS
°{, onr resources,and they clearly
JSjto'f-®? toe patience of .the people under self-
WMPs9R?*a«a
fvri»^L°.L <^ p^ ct, .® d ’ ? or 18 it perhaps desirable,
“P! 10 rate of reduction should be con
tihbed.. A considerable diminution of taxes
was effected by the amendments of the Internal
StTw 1 a^, the i*st session ol Congress?A
Internal taxes, and a
modification of the tariff, which will doubtless
lead tp a seduction of customs duties on manv
required, In order.
S^f )e iJ J;lcre S s6d a hew life infused
intocertaln branches of Industry that are now
languishing under the burdens which have been
imposed upon them. But,' after the proper and
necessary redactions shall have been made the
will doubtless be sufficient, if the gov-'
eminent shall, be economically administered
nnfin? SS, curr f nt expenses, the interest on the
pumlc debt, and reduce the principal at the rate
OTsS?«,£? p «,". to flve htliliens per month. In
that this niay be done, however' there
must be no additional donations to railroads
mentB bul 111 thefulhlment of contracts’
a “ d no unnecessary expenditure of money for
whatever, with proper economy
)-h ell the departments of the government the
SJ?- b 6 said5 aid by , 016 generation that created
e( l, aal revenue laws shall be en
acted and continued by Congress, and thesA
laws are faithfully enforced by the officers
charged with their execution. That It Is the
will of the people that It should be paid, and
not Perpetuated, Is clearly Indicated by the
nast r isk K s rapld reducti on during the
past year has been regarded. Theidea
thori a na y on nl debt can be anything else
than a burden —in which there are
*°“ e but suila bnrdema mort
gage npon ih© property and Industry of the
people—ls fortunately not American idpa
«? ich 016 publio expenditures
are to heavy or the resources are so small tn a r
Public debts is practlca
ble, and where national securities' become
monopolized capital in the hands of moneyed
aristocracies, who not only absorb the means
but give direction to the sentiment of the
in our history has created so much
sorprise, both at home and abroad, as the re
duction of our national debt. The wonder ex- 1
with which lt waa created
is greatly exceeded by the admiration of the
Jhnn’>«° E e **£ payers themselves that it
shaUbeispeedily extinguished. The convlcUon
fastened upon, the popular mind
Important—for. economy in'the na
tional expenses, for, the maintenance'of a trne
to the admlnlstrauSHf the go ”
SiSS- nt f { or t ? n ? e of good morals and of
public ylrtne—that the policy of a steadv an
nr>rl\nt? aet debt Bhould be definitely
and inexorably established.
.Nothing short of this, and that economy in
expenditures which will render it
practicable, will reconcile the people to the bur
dens of taxation.. A national cleht must ever
b ®? uponßepublican instUuUons,
fito ours should not be subject to It one day
longer iban Is necessary. To the perpetuation of
Irnlo’ftm? 8 * ebt of tb e United States there are
f. I®® 1 ®®- l i™ a y be proper to remark, serious objec
li??®.Brpwtog out of the circumstances under
which It was created. Although incurred in a I
fS rU V e Preservation '
eminent, ana therefore especially sacred in its
burdens are to be shared by thosa
a reminder of humiliation and
wwtfiiwiS exceedingly desirable that this.
ns€s of heartburnings and allena
tioh, should be removed as rapidly as possible
and that all should disappear with thepresent
K?pe ra |ton, so that there may be not hing In the
vS!S-.f„ l „ 0 ,P reveD t that unlt y and goodfeeUng
between the sections which are necessary for
true national prosperity.
. regrets, notwithstanding the
large reduction of the national debt, and the
satisfactory condition. In other respects, of the
Tr s^ s ? ry .’ ,bal utlle Progress has been
made since his last report toward specie pay
ments. The vlews presented byhlmin that re
port, aithoagh endorsed In the House of Reo
resentaiiyes by a nearly unanimous vote, were
r‘° t ® nK ' a ‘ ne d by corresponding legislation. In
stead of being authorized to reduce the paper
circulation ol the country, according to his re
commendations, the amount of United States
notes -which he was permitted to retire was
tonlted lo $10,000,000 for the six months end-
l2, and to $4,000,000 per month
thereafter. In the meantime, the reduc
«.<S„%f„tKestnolea and ° r toe notes of the
f' at ® BaEk s.bas beennearly balanced by the
increase of the circulation of the National
Banks, and specie commands about the same
premium It did when the last Treasury Report
S?iL r < r t,R are< Jt. been thus prevented
ffom taking the first Important step toward a
tototii to specie payments, the Secretary has
mainly directed his attention to measures look
i 811 tocrease of efficiency In the collection
ol the revenues, to the conversion of interest
bearing notes toto fi-fre-twenty bonds, and to a
reduction of the public debt. Wharhas been i
accomplished in these respects, and Is not al- !
ready understood by the country. Is explained
report. The Seoratary has also
deftoealt to be his duty to nseisadh means,
within his control, as .were. In his judgment!
best calculated, to keep the business of-the
country as steadily as possible, while conducted
on the imcertain basis of ,an : Irredeemable cur
rency. To accomplish this, he has thought It
necessary to hold a handsome reserve of oola In
toe Treasury. For doing so, he has been crlti-
Sr Ee ™i )ym^? y very totelllgent persons, some
of whom have condemned the policy as
Involving a heavy loss to the country, in way
of interest- others have objected to it as a
SoSfS °>S blB P® ll , to ay»U himself of means
within his control for reducing the price ol
coin, and thus approximating specie payments:
SSi^A, 0011 ! ? ot a few “aye pronounced all
SOvernment unwise, on the
theory that If the coin received from customs,,
?S£Ss t^<lulredfor toe payment of Interest!
should be permitted, to accumulate until It
should reach about the same proportion to the
outstanding United States notes that, in former
days; the coin hx the vaults of well-managed
§? D * tog.institutions sustained to their imme
diate liabilities, speole payments might he
resumed, without a reduction of the ctUTencv.
and without regard to the condition of trade
between the United States and other nations -
vUnder these circumstances, feeling sensible of
the great responsibility of his poßtilon, the Sec
retary has deemed It safer and better for the
country, to act according to the dictates of his
own judgment, carefully regarding the condl
tlon ol the markets and of the Treasuty, rather
than to take his direction from those who, how
evm intelligent and able, were under.no official
obligations to the government, and- might be
less accurately advised In regard-to the actual
Blate Of Its financial affairs. He has regarded a
steady market as of more. Importance to the
people, than the saving of a few.milllans of dol
lai s In'theway of Interest; and observation and
experience have assured him that. In order to
secure this steadiness,in aay. considerable: de
gree, while business is conducted on a paper ’
Basis, there must be power in the Treiasarvto
prevent snccessjul combiriations to bring about
nuctuatlons fot purely speculative, pin-poses.
-Hehasalso been clear in his convictions that
specie payments are not.be restored by an ao
■ cnmhlatlonof coin in the Treasury, to be paid
ontat a Injureiday In the redemption pf gdvem
ment obligations;.-bnt rather by quickened
.preduotlonf aid lower
make toe United States '
■ b^~ a -creditor - and: hot a. '
debtor nation. These vie wa explatn the coarse >
that been .pmsned with ,tbe sold which ,
?°rlng his administration ,of the Department, .
has come into the Treasury.', He has permitted
It to accumulate when -the-use or theissde of It
was notnecessaryforpaylng government’obU
gations. or to preveni commercial panics, at .
successful combinations agalnst the, national'
credit; and he has sold whenever sales werene- •
cessary tostipply the: r Treasury .with ourranoy,
to ward offflnanoial crises. ortosave the paper
circulation of the.conntry, as far as praotlcahie,
from unnecessary and damaging depreciation.
For making sales he 'alone ls responsible. If
in condnetlng them, any lavoritism has been
snown, or If the Interests of any particular class
have been especially regarded.it has beenftvith-
Wlthont his knowledge, and In violation of Uts
334,610.00
He baa not the slightest reason
:< T'S^rfs?^^^3niSS£B?. befa
a^^jgsßsaaags
ationoftiiSmeSA O «sSi m S ortance of a roator
c£SS!r ? r the meatiB ne
pessary 10 enact it. He trusts, however that:
he has not been understood as entertain!„VfSa
opinion thata reduction of SKSSSwwould
or itself necessarily bring about anfinto W Satr
ments, although the chief and essenSadmSfua
to effect the desired resul
dundant legal-tender currency as ttamim«
cause of our financial difficulties, and a nn/tnii
pent thereof Indispensable, to an
labor and a reduction of prices, to an anemeS
tatton ofexportsand a diminution of imnTrtn
which alone will* place the trade -betweantha
United States and'other nations on
and satisfactory footing, et *- uai
In order that his views on this point may not
be misapprehended, the Secretary trusts that
he will: be pardoned for referring(even at a
risK of a repetition of/what he has heretofore
presented in other communications to Con
gress and in other ways to the couatry)to cer
tain laws, well understood, but disre
garded, which regulate International trade and
control the movements of coin, We have
traveled so far from the specie standard, and
are bo blinded in regard to.our actual financial
oondltton and our . relations with other coun
tries, by-an inflated and Irredeemable cur- •
the exportation of our securi
ties( tnat frequent recurrence, to Inexorable
commercial and financial laws is necessary. ■
commenced between the
inherent nations, gold.and silver halve
Sf?SiSL e o o^^ 1 - e i?' sle recognized measure
pEblnm of exchanges. While In
irUernal trade other representatives of
a greater or less extent, been
SffttV?? a iJ nations, .money made, oftoase
metals hashMn prononnoed by, the judgment
SttS" 1 the only currency poasesslng the
attributes necessary for a uniform and unl
™lP? 1 «P lrenl ? ,lne medium., From this , judg
““‘there Is no appeal. Not only Is It toe
SSS? n i!i5 nivel s? lly acknowledged measure'of
value and .medium of exchanges, but by its
ff|P?atlng flow, it Indicates toe condition and
between different nations.
Water does not more naturally seek a level,
specie flow from one nation to ahi
™^ or H l6 Payment of balances created by
an unequal exchange of commodities. Trade
rinhP^ generally and chiefly con
aatof productions; but
SSSSTS a T a en k
paStogtalauces to coto whfeh S&tte
trade of nations.. It Is. this: great commercial
and financial law which makes the nation that
fSa B tu lore l? an ,J? 8 . 1 5 lys ’ the creditor nation,
apd the nation that buys more than It sells
k£? be , bt ? r potion, and recognizes no medium
but coin to the payment of balances, that de
toe question of toe ability of toe
United States to resume and maintain specie
payments. If the balance Is In our feyor. or If
not to our favor, if toe balance against us is so
small that It can be paid without an exhaust
tog drain upon our precious metals, specie pay
ments can at once be resumed. Such, unfor
tunately, is not toe feet. Notwithstanding our
heavy exports during i he past year (that ofcot
i°(shrivi V iP\ s been 650,672,820 pounds, or nearly
1,600,000 bales, a quantity greater than our en
tire crop of the present year), toe United States
are largely a debtor to Europe. ‘
k few fects wIU put us to right on this point.
Between toe year 1848, when sold was first dis
covered in California, and toe first or July, 1566.
toe product of the gold and sllvermtoes of toe
.United States, was about.SI.IOO,OOO.OOO, nearly
all of which bas gone into tbe world’s «mtar»*
stock; and it Is not probable that the am!unt §f
gold and silver now to the United Slates, Is very
much larger than it wbs eighteen yearn ago.
, tbe hscal year ending June £KJ IS6S
toe United States imported: >, . »
Foreign merchandise free
of duty $55,801,7a9
Foreign merchandise pay
lug dutyi. .... 368,508,041
To!
.. 405,553,891.07
42.108,905.49
447,062,803.16
8,624,000.00
$211h!83,237.45
ital
Of foreign merchandise
there was re-exported:
Free of duty. 5',907,157
Dutiable 9,134,263
Total (mixed
gold, and cur
acy value) 11.311,420 '
Which, reduced to cur
rency value, was equal to $10,26^233
Total aet imports foreign
merchandise, valued in
- Bold ........ 417046,577
Imports, specie 10,329,156
Of which there
was re-export-
Net imports, specie 6,923,459
3 otal net Imports, foreign merchan-
During the fiscal year ending June ‘ -
00,1866, the United States exported
domestic merchandise, currency
value, 5465,010,903, reduced io Bold
vahie 333,322.055 \
Specie exported 82,613 374
Total domestic exports, valued in
gold
Apparent balance of trade, valued
Jn S°ld _ $3,009,577
But these figures, taken from the reports of
the custom houses, do not piesent the whole
truth For many years there has been a sys
tematic nn der-valuation of foreign merchandise
imported into the United states, and
amounts have been smuggled into the country
along our extended sea coasts and frontiers
To make up for nnder-valnatlons and: smug
gling, and for cost of transportation paid to
foreign shipowners, twenty per cent, at least
should he added to the imports, which would
™ a ,se the balance for the past year against the
Jjnited States nearly $100,000,000. It Is evident
that the balances have been largely against the
United States for some years past, whatever
may have been the custom-house returns. - On
no other ground can the fact be accounted for
that a very large amount of American bonds is
now held in Europe which are estimated as
follows, to wit: ,
United States bonds $350,000,000
State and municipal bonds 150 000 000
Kailroad and otherstocks and bonds. 100'000 000
T ° tal $609,000,000
. It Is evident, from these figures, that the
balances are against ns, and, chiefly by the ex
portation of our government bonds, are being
.temporarily and improvldently arranged; tem
porarily, because a large portion of these bonds
have been bought on speculation, and will be
lixely to be returned whenever financial
troubles In the countries In which they are
held shall mahe It necessary for the holders to
realize upon them, or whenever Satisfactory
profits can be made by returning them, which
will be when they nearly approach their par
value In coin; Improvldently, because they are
being purchased at very low prices, and because
tbeir exportation stimulatesimports, and thus
cripples home Industry. Nothing Is. more cer
tain than the fact that there can be no perma
nent resumption of specie payments in the
United States until the balances between them
and other nations, shall bemadeeasy bv an
exportation of commodities I' inclutflne the
prcductsof the mines, equal at least to our Im
portations, and until provision shall be made
lor returning bonds, or for preventing their
return at nhproplfions times.' This state of
ihings.lt is conceived, cannot be effected with
out a cbangein ourflnanclal policy.:
There being hut' one universally recognized
measure of value, and that being a value m
itself, costlpg what it represents in the labor
, whlop is required to; obtain it, the nation that
adopts, either from choice or f temporary ne
cesaty, and Inferior standard, violates the
financial law or the world and Inevitably suf
fers for its violation; *An irredeemable, and
consequently depreciated, currency, drives out
or circulation the currency superior to itself;
..audit made by law a legal tender, wtUle Its
real value Is not thereby .enhanced, becomes
alalse and demoralizing standard.fmder the
influences of whioh prices ad vance'ina ratio
disproportloned to its dctuail depreciation.
Yery different from this is that gradual, healthy
and general advance of prices which is-the ef
fect of the Increase of the precious metala The
coin'whicb is obtained in the gold and Silver-”
producing districts, although it first affects pri.
ces within sncb districts, following the course
of trade, and in obedience to its laws soon
finds its way to ■ other ■ countries,: and
,9^ mes , of. the; common stoote
of the satioDß, which, increasing in anxotmi bv
the regular product of the mlnea, and In activity ”■
by the .growing .demands of commerce, ad.
' and commodities
throughqntftie commercial world. Thus.the
products.of the American ./Australlanand Bus
-1 Sl all , ll 'ite eB ,^ el ?flS rst ? o a d v an c e prices in their
, respect!velocaHt leg, hut the operation Of: trade
S,isdii trlb ’J te ? tlle ? e P ro<l
everywhere leela and responds totheincreasl /
o
5 Hi
iQtereat, the cost of
and other necessary fexplSlifiteJiSSJS!
than in that in which it is produced, or
isxaquired topay the balances to other
■ -vv - t
11
427,309,810(36
3,400,697
475,535,459