The New York Herald Newspaper, December 9, 1868, Page 4

4 NATIONAL DEPARTMENTS. THE TREASURY. ne “REPORT OF HUGH M’CULLOCH. go compliance with the requirements of law the Secretary of the Treasury has the honor to make to Congress the following report:— In his former communications the Secretary has expressed 80 fully his views upon the great subjects of the currency, the revenues and the public debt that at may be thought quite unnecessary for him again to press them upon the attention of Congress. These subjects, however, have lost none of their impor- tance. On tle contrary, the public mind during the jpast year has been turned to their consideration with more absorbing interest than at any former period. "Tne Secretary will, therefore, he trusts, be pardoned for restating some ofthe views heretotore presented by him. , If there is any question in finance or political econ- omy which can be pronounced settled by argument und trial, it is that inconvertible and depreciated paper money is injurious to public and private in- terests, @ positive political and financiai evil, for which there ¢an be but one justification or excuse— to wit, @ temporary necessity arising from an unexpected and pressing emergency; and it follows, consequently, that such a circulation should only be tolerated until, without a financial shock, it can be withdrawn or made convertible into specie. If an irredeerable bank note circulation ts an evidence of bankrupt or badly managed banking fustitutions, which should be deprived of their fran- chises or compelled to husband and make available their resources, in order that they may be prepared et the earliest day practicable to take up their dis- honored obligations, why should not an irredeem- able government currency bo regarded as an evi- ,dence of bad management of the national finances, af not of national bankruptcy? And why should not such wise and equal revenue laws be enacted and such economy in the use of tle public moneys be enforced as will enable the government either judici- #usly to fund or promptly to redeem its broken Promises? The United States notes, although de- clared by law to be lawful money, are, nevertheless, a dishonored and disreputable currency. The fact that they are a legal tender, possessing such attri- ‘Dutes Of money as the statute can give them, adds nothing to their real value, but makes them all the more dishonorable to the government and subversive of good morals. The people are compelled to take as Money what ts not money; and, becoming demora- sized by its constantly changing value, they are in anger of 1osing that sense of honor in their deal- mgs with the government ond wit each other ‘which is necessary for the well being of society. It 43 vain to expect on the part of the peop le a faithful fulfilment of their duties to the government as long us the government is faithless 6» its own obligations; nor will those who do not hesitate to defraud the public revenues long continue to be scrupulous in ‘thelr private business, Justifiable and necessary as Ihe measure was then regarded it is now apparent 4hat an uilfortunate step wes taken when trredeem- able promises were i ssued a8 lawful money; and especially when they were made a valid tender tn payment of debts contracted when specie was the aegal as well as the commercial standard of value. ‘The legal tender notes enabled debtors to pay their debts in a currency lergely inferior to that which ‘was alone recognized as money at the time they ‘were incurred, and thas the validity of contracts ‘was Virtually tmpaired. If all creditors had been compelicd by law to pay juto the public treasury Hfty per cent or ten per cent, or, Indeed, any portion of the amounts received by them from their debtors, such @ law would have becn condemned as unequal and unjust; and yet the etfect of 1t would have been Xo lessen, to the extent of toe receipts from this source, the necessity for other kinds of taxation, and ‘thus to relicve in some measure the class unjustly, ‘because unequa'ly, taxed. By the Legal Tender acts ‘@ portion of the property of one class of citizens was \virtually confiscated for the benefit of another, with- out au increase thereby of the public revenues, and, consequently, without any compensation to the in- gured class. There can be no doubt that these acts aye tended to blunt and deaden the public con- welence, nor that they are chargeable in no sinali de- ere — the demoralization which so generally prevails. The-economical objections to these notes as lawful money—slated at ienyth in previous reports of the Secretary—may be thus briefly restated. They in- creased immensely the costof the war, and they have added iargely tothe expenses of the govern- ment since the restoration of peace; they have instability in prices, unsteadiness in trade acheck upon judicious enterprises; they specie from circulation and made it anerchandise; they have sent to foreign countries the product of our mines, at the same ti that- our Earopean debt has been steadily in- creasing, and has now reached such magni tude as to be # heavy drain upon the national re- sources aud @ scrioms obstacie in the way of a return to specie payments; they have shaken the public credit by raising daagerous questions in re- ward to the payment of the pub ‘bt; in con- nection Witt high taxes (to the necessity for which aney have lar; are preventing ehtp buildin: and thereby the restoration of the commerce Which was destroyed by the waf; they are do not necessitate) protective tarjits, and yet fail, by their fluctuating value, to pre the American manufacturer against dus foreign competivor; they are filling the covers of the rich, bat,- by reason of the high prices which they create and sustain, they are almost intolerable to persons af limited incomes. The language of one of the greavest men of modern times, so oiten, but not toe often, quoted, Is none too strong in its de- scriptions of the injustice and the evils of an incon- vertibie currency:— OF ‘all the contrivances for cheating the laboring classes of Ywankind none has been more etfectual than that which de- ‘Ordinary tyranuy, ‘bear Igitiy on th ef the mi compared with currency amnitted by deprec " ‘Our own history has recorded for our instruction i amore than enongh of the demoralizing tendeacy, the tnjus- s oppression o the virtuous and well- disposed of adegvaded paper currency authorized or in any Way countenanced by xoverament. The experience of all nations that have tried the experiment of inconvertible paper money has proved the truth of the eloquent words of Mr. Webster. If our Country 14 in a weasure prosperous with such yas upon ti it is because od gg cent in exteft, so diversified ig clmate, H rich in ith é people 80 full soil, go abundant in mifierals, of energy that even a debased carrency can only re- Tard but not put a stop to its progress. ‘The Secrevary still adheres to the opinion so fre- quently ©. sed by him that a reduction of the paper circulation of the country until it appreciated fo the specie standard was the true solution of our Financial problem, But as this policy was emphati- cally condemned by Congress and it is now too late to return ty ithe recommends the following meas- ures a5 the next best calculated to etfeet the desired resuit. Agreements for the payment of coin seem to be the only ones, not contrary Ww good morals, the per- yormance of which cannot be enforced in the courts contracts” executed before the passage of \ ender acts, a8 well as those executed since, inal the States except California, by got of the amounts cal for tn depreciated This shackle upon coinmerce, this chock F national progress, this restriction upon in- rights should no longer be contin afit ‘Laitted that the condition of the coun’ uring fter its close, cr ecisions making p e according to the rest a #) the m discharged, this ne- ld now be tak urity n ssity for laws and notes (Muctuating tn va Hattios aud of specul tu which contracts shouid be no longer exisis, stabiit ssity for the use of it at home en: niorprises extending into the futura by vine all uncertainty in regard to ¢ pcurrcney wih which they are to b th a law would remove a formidabie em! in our joreign trade, would familiarize our le again with as the standard of value, and show how ss is the apprehension eo weneraily exisitr hat a withdrawal of depreciated notes or th ton of these notes to pit, would produ cily of money by proving that specie, expolied fr be country by an iuferior cir- culating medium, will rh again when it is made the basis Of coniracts, and is needed in their per sormance, Business is now necessarily specuialive beoause the basis is unreliable. Currency, by reason of 16 uncertain future value, although usually pl tiful in the cities, aud readily obwwined there at low rates on short time, With ample collaterais, ts com. yaratively scarce and dear in the agricultural wistricts where longer Joaas on commercial sper are required, Prudent men hesitate both fo iina or to borrow for way considerab.e period by " bility lo determine the Value of the ' fe loans are to be pad, With ow seventy cents ob uewe tut, aud NEW YORK HERALD, WEDNES Which within six months may advance to cighty or decline to sixty, is it strange that the Now is to the business centres, where it can be loaned ‘on call,” leaving the interior wi proper supplies, at rea- sonable rates, for moving the crops and conducting other legitimate business? Is it strange that, in Such an unsettled condition of the currency, gam- bling is active while enterprise halts, trade stag- hates and distrust and apprehension exist in regard to the future? It 1 not supposed that such & measure as ig recommended will cure the financial evils which now Afiiict the sountry; but tt will beta de- cided movement in the re it direction, aud the Sec- retary indulges the hope that it will receive the early snd favorable consideration of Congress, Toe legal tender acts were war measures. B; reference to the debaies upon their passage it will be perceived that, by all who advocated them, they Were expected to be temporary only. It was feared that irredeemable goreraniens ‘notes, in the unfortu- n condition of the country, could ony be saved from great depreciation by being made a legal tender—the great fact not being sufficiently con- sidered that, by possessing this character, their de- preciation would not be-prevented, but merely dis- guised. Hence it was declared that they should be “lawful money and a legal tender in payment of all debts, public or private, within the United SI ept dnties on imports and interest on the public debt.” They were issued in an emergency, for which it then seemed that no other provision could be made, They were, in fact, forced loan, justified only by the condition of the country, ‘and they were 50 recognized by Congress and thé people. By no member of Congress and by no public journal Was the issue of these notes a3 lawful money advo- cated on any other ground than that of necessity; and the question arises, should they not now, or at an early day, be divested of the character which was conferred upon them in a condi‘ion of the country so different from the present? The Secretary believes that they should, and he therefore rccommends, in addition to the enactment by which contracts for the payment of coin can be enforced, that it be declared that after the first day of January, eighteen hundred and seventy, United States notes shail cease to be a legal tender in pay- ment of all private debts sabeegnéntly contracted; and that afier the first day of January, eighteen hundved and seventy-one, tilsy shail cease to be a legal tender on any contract or for any purpose whatever, except government dues, for which they are now receivable. The law should also authorize the von’ ton of these notes, at the pleasure of the hoiders, into bonds, bearing such rate ofi nterest. as oO be anthorized by Congress on the debt into which the present outstanding bonds may be funded. ‘The period for which they would continue to be a legal tender would be suificient to enable the people and the banks to prepare for the contemplated change, aud the privilege of thetr conversion would save them from depreciation. What has been said by the Secretary 19 his previons reports on the per- nicious effects upon business and the public morals of 1 avertibie legal tender notes, and what is said in this report upoif the advantages which would re- sult from legalizing cola contracts, sustain] this re- commeidaion. It may not be mproper, however, to suggest another-reason for divesting these notes of tneir leral tender character by leg'slative action, Although the decisions of the courts have been gene- rally favoraile to the constitutionality of the acts by which they Were authorized grave doubts are enter- tat_ ed by many of the ablest lawyers of the country ae to the correctness of these decisions, and it is to be borne in mind that they have not yet been sus- tained by the Supreme Court of the United States, The illustrious lawyer and statesman whose lan- age upon the subject of irredeemable paper money has been quoted, in the Senate of the United States, on the 2ist day of December, 1836, expressed the fol- lowing opinion:— Most unquestionably there is no logat tendor in this coun- try, under the autuority of this government or any other, but gold and silver, eliher the eo! f our own mints or foreign coins at rates rezulated by Conzress. This is a constitutional principle per cily plain and of the very highest importance, he States are expressly prohibited from making anything but gold and sliver a legal tender in payment of debts, and although no auch, express probibition is applied to Cong yet, as Congress has no power granted to it in this reapect bn to coln money and to regulate the value of forcign coins, it clearly has no power to substitute paper or anything else for coin aa a tender in payment of debte and in discharge of con tracts, Congress has exercised this power fully in both its branches. i Javed thi It has coined money and still coins it; It has regu: ine of foreign coins and still regulates their 1 vender, therefore, the constitutional stan- dard of value, is established and cannot be o wo. To overthrow it would shake the whole system. Itis by no means certain that the Supreme Court will diger from Mr. Webster upon this question, and A ope can fatl to perceive how important it is that the legis'ation recommended should precede a de- cision (from which there can be ne appeal) that United States potes are not, under the federal con- stitution, a legal tender. The receipts from customs for the last three years us follows: For the fiscal year ending June 30, 1866. . $179,046,651 For the fiscal year ending June 30, 18 176,417,810 For the fiscal year ending June 30, 1868.. 164,464,599 While it appears from these figures that the cus- toms receipts since the commencement of the fiscal year 1865 have been, in a revenue point of view, en- tirely satisfactory, the question naturally arises, what do these large receipts, under a high tari, in- dicate im regard to our foreign trade aud to our financial relations with foreign nations ? it 18 impossible to ascertain with precision the amount of our securities held in Europe, nor ia there any perfectly rellable data for ascertaining, even, what amount bel, Yoo there annually since the first bonds were issued for the prosecution of the jate war. In his report of 1866 the Secretary esti- mated the amount of United States securities of dif- ferent kinds, including ratiroad and other stock, held inEurope, at $600,000,000. He soon after be- came satisfied that this estimate was too low by from one hundred to one hidhdréd and fifty millions. At yould be Bary to put the amount so held at the présent time, 6xciusive of stocks, at $850,000,000, of Which not le&4 than $600,000,000' are United States bonds, nearly all of which have left the United States within the last six years. The amount is formida- bie, and iittle satistaction ts derived from the con- sideration that these securities have been transferred lu payment of interest and for foreign commodities, and just as little trom the consideration that proba- biy not over $500,000,000 in gold vaiues have been received for these $30,000,000 of debt. In this umate of our foreign indebtedness railroad and other stocks are not included, as they are not &@ debt, but the evidence merety of the ownership of propel in the United States. Fortunately, for som. "ars past, individual credits have been cur- tailed, and our foreign and doimestic trade, in this particular, has not been unsatisfactory. Im addition, then, to the stocks referred to and the individual in- debteduess, of the amount of which no accurate e3- timate can be made, Europe holds not less than $80,000,000 of Ainerican securities, on nearly all of est, dud on the greater part of which in- ng paid. Nor, under the present i with a depreciated Hom aoe cur- ase of our foreign debt likely to be . With an abundant harvest and a large sur- plus of agricuitaral products of all descriptions, United States bonds are still creating, to no small extent, the exchange with which our foreiga noes are being adjusted. We are even now in- creasing our debt to Europe at the rate of $60,000,000 70,000,000 per annum in the form of gold-bearing bonds. ‘The gold and er product of California and the itories, since 1543, has been upwards of £1,900,000,000. Allowing that $100,000,000 have been used in manufactures aud that the coin in the country has been increased to an equal vant, the balance of this im- mense = stum—$1,100,000,000—has gone to other countries in exchange for their productions. Within @ period of (wenty years, in addition to our agricul- tural products and lo our manufactures which have been exported in large quantities, we have parted With $1, 100,000,000 of the precious metals ; and are, nevertheless, confronted with a foreign debt of some $50,000,000, Which 18 steadily increasing; and all Uvs has ocgurred under tari in a good degree framed with the view of protecting American against foreign manutacturers, But tis ig not all, During the recent war most of our veasels engaged in the foreign trade were either destroyed by revel cruleers or transferred to foreigners, Our exports a8 Weil 88 oUF Laports arte Now chiefly in foreign bot toms, The carrying trade between the United States and Europe ts almost ltverally in the hands of Euro- peans, Were it not for the remnant of ships still employed in the China trade, and the stand we are making by the establishment of a line of stcame on the Pacific, the coastwise trade, which is retained by the exclusion of foreign competition, would seem. té be about vii that eau, under existing legislation, be bn upon for the employment of American sinp . ‘There are many intelligent persons who entertain the opinion that the country has been benefited by tue transfer of oar bonds to Kurope, on the ground that capital has been received in exchange for them, which has been protitabiy employed in the develop: ment of our national resources; and that 1t matters je Whether the interest upon the debt ts received by our own people or by the people of other coun- This opinion is the resatt of misapprebeasion facts, and js unsound in principle, iis nottoa large extent true that capital, Which ts being used in developing (he nattonal resources, lias been received bonds wh ire held in Burope, such as railroad trom, macni- ed in imanufacturing nery aud raw ma the vaiue of which to the © received, a lurge proportion of the ve been of @ different des been largely paid ior in i torn in a n have neith imalated mdustry nor incr yductive power of the country, which hav d nothing to the national wes Are sto the custom house entries will stbstantiate the correctness of these statements, Two-nird of the = importations f th nited States consist of articles whic ical times, Would be pronounced dant 8 ha’ ds have ou can af «This, unforbom * uunually swelling our i ising our ability to pay it. the fact. They debt without in divastrous such a courte of trade, if long continues it requires ne pred it an irapori intere ortion of our securities 14 re Mother countrics tustwad of our own. st Upon & pablic debt is paid out where th for it are eollected, the debt, althougt) 4 burden upon the mass of taxpayers WhO are no. holders of securities, may be so managed a¢ not to be a severe burden upon the nation. The money Which goes into the Treasury by means of taxes will flow out again into ihe same community m the payment oi: interest; and wero it not for the expenses ationding it, the pro- cess Would not, in a purely economical view, be an exhausting one. If the bonda of the United ‘States equally distributed among the people of the ent States laere Would by lew complaint of the ntry 13 acknowledwet— | 1 debt than is now heard. Anti-tax parties will attain strength only in those States in wihich few bonds are heid, "Af the people of the West are more sensible of the burdens of federal taxation tan are taose of the Eastern States, it is because they are not holders to the ‘same exient of national securities. ‘his ine quality cannot of course be prevented by legal or artificial processes, ‘I'he securities will be most largely held where capital is the most abundant; an sey will be more equally distributed among the respective States, if not among the people, as tue new Statea approach the older ones in wealth, These manifest truths indicate how important tt 13 thar the debt of the United States should be a home lebt, so that the money which {3 collected for taxes may be paid to our own ple in the way of luter- est. In fact, a large nat! debt ‘lo be tolerabie must of necessity be a home debt.’ A nation that owes heavily must have its own people for creditors. If tt does not the debt will be a dead weight upon its industry, and will be quite likely to force it event- bankruptey, ‘The United States are not et ‘a oud oxample. to other nations & good example other nations steadily and rapidly reducing that debt. What ig now required, us has been intimated, are measures which will tend not only to prevent fur- ther exportation of our bonds, and in the regular course of trade to bring back to the country those that have beer expoi but which will also tend to restore those important interests that are now lan- guishing, as the result of the war and adverse legis- lation. ‘The first and most important of these mea- sures are those which shall bring about, without un- necessary delay, the restoration of the specie stand- ard. The financial diiiculties under which the country ts laboring may be traced directly to the issue and continuance in cirenlation of irredeemablo Promises as lawful money. The country will not be really and reliably prosperous until there 18 a revurn to specie payments. ‘The question of a solvent, con- vertible currency underiies all other financial and economical questions, It is, in fact, a fundamental question; and until tt 48 settled, and settled in ac- cordance with the teachings of experience, all at- tempts at other financial and economical refering wiil either fail absolutely or be but partially succgss- fal. A sound currency is the lifeblood of a com- mercial nation. If this is debased the whole current of its commercial life must be disordered aud irregu- lar. The starting polut in reformatory Jegisiation must be. here. Our debased curreacy ‘must be re- tired or raised to the par of specie, or cease to be lawful money before substantial progress can be made with other reforms. Next in importance to the subject of the currency is that of the revenues, Taxes aregindispensable for the support of the governmen;, for the maintenance of the public credit and the payment of the public debt, ‘To tax heavily, not only w! 1t impoverish- ing the people, but without Checking enterprise or putting shackles upon ladustry, requires th Dost carelul study, not only of the resources of the coun- try and its relations with other nations, but aiso of the character of the people as affected by the nature of their institutions, While much may be learned by the aay of the revenne systems of Europeno nations, which have been perfecucd by of ex- perience and the empiovment of the highest talent, it must be obvious that these systems must undergo very consideyable modifications before they will be @#tted to the political and physical condition of the United States. Ina popular government like ours, where the people virtually assess the taxes us weil as pay them, the popular will, if not the popular prejudice, must be listened toin the preparation of revenue laws. Justice must, in some iustunces, yield to expediency; and some legitimate sources of revenue may be Unavailable because a resort to them might be odius to a majority of tax- payers. The people of the United States are enierprising aud selt-retiant. Most of them are the “architects of thelr own fortunes;” few the in- heritors of wealth. Engaged in various enterprises, with constantly varying resulis, and in sharp com- etition with each other, they submit reluctantly to inquisitions of taxgatherers, which might not hejob- noxious toned le less independent and living under less liberal institutions. Then, too, the Umited States are a new country, of large extent and diversitied interests, with great natural resources, in the early process of development. Not only may systems of Tevenue which are suited to Engiand, or Germauy or France be unsuited to this country, but careful and judicious observation and study are indispen- sable to the preparation of tax bills suited to the pe- cullar interests of its different sections, It was with a view of supplying Congress with such infor- mation as was needed to secure the passage of equal and wise excise and tariif laws, which would yield the largest revenue with the least oppression and in- convenien:e to the people, that a revenue commis- sion was created in 1805, The creation of this cor- mission was the first practical movement towards a careful examination of tie business and resources of the country, with a view to the adoption of @ judi- cious revenue system. The reports of this com- mission were interesimg and once and they exhibited so clearly the necessity for further nd more complete investigations that by the act of Juiy 13, 1466, the Secretary of the ‘Treasury was authorized to appoint anj officer in his department, to be styled the Special Commissioner of Kevenue, whore duty it shouid be “to inquire into all the sources of national revenue and the best method of collecting the revenue; the reiation of forelgn trade to domestic industry; the mutual adjustment of the be of taxation by customs and excise, with a View of insuring the requisite revenue with the least disturbance or inconvenience to the progress or in- dustry and the development of the resources of the conntry,” &c. Under this act Mr. David A. Wells Was appointed Special Commissioner of the Revenue. With what energy and ability he has undertaken the very dificult duties devolved upon him has been manifested by tue reports which he has already sub- mitted to Congress. That which accompanies, or will soon follow this communication, will prove more fully tian those which have preceded it have done the importance of the investigations tn which he is engaged and the judicious labor which he is bestowing upon them. ‘The facts which ke presents, and the recommendations based upon them, are en- tiled to the most careful consideration of Congress. These reports of the Commissioner are so compiete that they relieve the Secretary from discussing elabo- rately the questions of which they treat.” His re- marks, therefore, upon the futerual revenues and the tartif will be general and brief. ‘The following is a statement of receipts from inter- nal revenues for the last three fiscal years:— For the year ending June 30, 1866. For the year ending June 30, 1867..... For the year ending June 30, 1868 It thus appears that the internal revenue receipts for the year ending June 50, 1867, fell below the ceipia for the year ending June 30, 1866, $43,199,275 and that the heart aor! for the year ending June 30, 1563, fell short of the receipis for 1857 $74,959,913, ‘The receipts for the first four months of the present fiscal year were $43,736,348. If the recei for these months are au index of those for tue re ning eight the receipts for tie present fiscal year will be ue receipts is ions and @ reduction of taxes. It is quite obvious that the re- ceipts from customs cannot be maintained without an increase of exports or of our foreiyn debt. If the receipis from customs should be diminished, even with a large reduction of tue expenses of the government, our internal reventies must necessarily be increased. The first thing to be dione is to introduce economy into ali branches of the pnolic service, noth; reduced appropriations to be made good by ‘efi- ciency bills,’ but by putting a stop to all Shogo demands upon jury. There is no dep ment of the government wiich is conducted with proper economy. The habits formed during the var ‘are still strong, and will only yield to the requre- ments of inexorable law. The average expenses of the next ten years for the Civil service onght not to exceed $40,000,000 annum. Those of the War Department, after the bounties are paid, should be brought down to $35,000,000, and those of the Navy to $40,000,000, The outlays for pensions and Ind ans cannot for some years be considerably reduced; byt they can doubtiesa be brought within $30,000, The interest oa the pubilc dept, when the whole devt shail be funded, a& an average rate of intere:t of tive per cent, will amount to $i2>,000,000, which vill be redaced with the annual reduction of the princhal. When the Internal Revenue and Tarif laws siall be revised so as to be made to harmonize with ech other {t 1s supposed that $800,000,009 can annuall be t frou these sources without burdensme yer How much oo eee Pages nee can erggin le subject of revame sail be RiarShahty Pavestigated by Vongress, vith the ight shed upon it by Commissioner Wells in his exhaustive report of the present year. The Secrta- does net doubt, however, that the best intersts of the country will be eubserved by a reduction othe tarlif and an increase of excise duties, According to this estimate the account wand stand as follow Receipts from by the War Departin peuditures by the Navy Departaicn penditnres for peusions and ludiaag for interest ou the at of tae principal of the cebt. country should make at in- # necessary, this increase Vill be provided for by jucreas siwe Tate Of WAXation; and as & 18 iat (he regular IDereasc of the WV n Ierease Of taxation, resu tli f the country in weal!) and pyp er than the nece: increase will be & cotstant neresing: 1 lo that ari ve annually @ ~ Hf large acidite unavordal i for by wtdt on, Will be ure should be vided them, at the the annur ure this AMNOTNL, Wwithod un e, and Wilh the east 0 thetax- resouves, receipts f eles of ‘The ‘miscelianeous re- ived jrom sales of by the War and war, and no longer yments there will lithe government d under te Hame- 18 Of the public us heretotore, i from lands. ‘ources Will wive restr possible oppression payers, the fo miscellaneous receipts and pnblic Jands aro omitted. Coipta heretofore lave been 1 and of property pureh Departments during th ied, On a return to speci e no premiums on cola, ver property will hereafter be sotd, a ftead law, and with liberal do domain, which are likely to be mac no considerable amount can be expect Whatever may be received from these doubtiess be covered by miscellaneous expeuses, of which no estimate can be mare. ‘The act of March 81, 1868, exenp'ing from taxes Meaty ali We maaulactures of tue coumbey obler AY, DECEMBER 9, 1863.—TRIPLE SHEET. than distilled spirits, fermented ilgnors and tovacco, was sudden and unexpected, !t not only deprived the treasury Of &D immense vevenus, bul be veduc- tion was 30 great a3 to leave au impression on the public mind that it would be only temporary aud that a tax im some degree equivaient to that which was removed would o! necessity soon be rd UO itis, perbaps, for this reason that this measure bas tailed to give relief to the public by @ diminution of prices and has benefitted manufacturers rather tuan consumers. ‘The frequent and important changes which have been made in the Internul Kevenue iaws, the ease with which exemptions Trou taxation have been obtained, and the suddenness with which taxes: have been greatly augmented or reduced, have consti- tuted one Of the greatest evils of the sysiem, sudden changes tn the revenue laws are not only destructive of all business caiculauuas, but tacy excite, not unreasonably, a feeling of discontent and a sense of injustice anne the people most unfavorable to an enicient collection of taacs. While it is aamitled that, in a new and growing country like ours, modifi- cations of the taxes wiil be irequently necessary, some definite poley should at once be inangurated in regard to our internal revenues, the genera: princi- pies yy which should be regurded as finaliy estab- uushed, = Assuming that the receipts from customs will be reduced by a reduction. of duties, or by the eifects of areturn to La balpred upon importatious under the preseny , und that consequentiy there must be an increase of internal taxes, there .are three soumnen of revenue Which are likely to be con- sidered, Firsi—An increase of {taxes upon distiiled spirits. ‘The idea of deriving tue bulk of the revenue from this article is @ Very popular one, and even our un- fortunate exponenne has only partially convinced the public of 1t3 impossibility, “‘The,late exorbitant tax on distilled spiriis, tatended perfaps not merely us a revenue measure, bul a3 an encourayement to femperinee, Breve to be the most demoralizing (ax ever inposed by Congress, Cae tad both tae man- ufacturers and the revenue oficers and fataiuar- ising the people with stupendous violations of the jaw. ‘The restoration of it, or any considerable in- crease ot the present tax, would lead toa repetition of the frauds which have-brought the interual reve- nue system into such utter disgrace. Second—A restoration of the tax on manufactures abolished in March last, ‘The objections to the restoration of this tax are that it wonld indicate vaciliation on the part of Congress, and that this tax, principally on account of numer- ous exemptions, Was .parhal and unjust. itis also upparent that if restored 1t would Jail to be perma- nent, by reason of the persistent and united hos- tity of a class of citizens indueatial and powertul, and Whose ingluence and power are rapidly increas- mg. Thiyd.—An increased and uniform tax on sales; and this cretury respectfully recommends, Under the present law wholesa.c and retait dealers in goods, wares and merchandize of toreiza or do- mestic production, Wholesale and retail dealers in tiquors and dealers in tobacco, are subject to a sim Jar bué unequal tax upon sales. This mequality sould be removed and a tax levied upon ail sales suilicient, with the revenues froin Other sources, to meet the wants of the goverament. The reasons in favor ol & tax upon sales are, that it could be levied generally thr hout the country and would not be lable io the impatahon of class legistation; that 1t would be 80 equally distributed as not to bear so op- pressively a8 other taxes upon individua's or sec- tions, aad tat no depression of one branch of in- dustry which did not injuriously aitect tae business of the entire country could greatly lessen its pro- ductiveness, As has been a‘ready stated, the receipts from cus- toms for the fiscal year ending Juue 4), 1866, were $179,046,651; for the year ending June 20, 1867, $176,417,810, and for the lust fiscal year, $164,464,509, ‘These figures show that the tarur has produced large revenues, although itis inno Just sease a revenue taruf, In this respect it has excecded the expecta- tions of its friends, if, indeed, it has not disappointed them. It bag not checked Importations, aud com- plaint is made that it has not given the anticipated protection to home manulactures, not because it ‘was not skilfully framed co this end, but because an inflated currency—the etfect of which upon importa- tions was not fully comprehended—has, in a meas- ure, defeated its object. It has advanced the prices of dutiabie articles, and, by adding to the coat of liv- ing, has been oppressive to consumers, without be- 1g of decided benetit to those industries in whose interest it 13 regarded as having been prepared. in lus last report the Secretary recommended the ex- tension of specitic duties, but did not recommend a complete revision of the tariff, on the ground that this work could not be intelligently done as long as business Was subject to constant de- rangement by an irredeemable curieacy. The same diftcuity still exists, but as decided ac- tion upon the subject of the currency ought not to be longer postponed, the present may not be an unfavorab-e time for a thorough examination of the lariit, It1s obvious that a revision of it is required, not only to relieve tt of incougruities and obscurity aad to harmonize it with excise taxes and with our agricultural and commercial interests, but also to adapt it to the very decided change which must take place in the business of the counury upon the re- storation of the specie standard. Large revenues are now derived from customs because a redundant currency produces extravagance, witich stimu ates imoporiations, If the cw gen f were convertible and business were regular and healthy the tarif would be severely protective, if not in many in- stances prohibitocy. Ind: of some valuable arti- cles it 16 protibitory already ‘rhere will be im the future, as there have been in the pasi, widely digerent opinions upon this long vexed and very important subject, but the indica- tions are decided that the io:e enlightened senti- meut of the country demands that the tariff shail hereafter be a tariff Zor reveaue and not for provec- tion, and that tue revenues to be derived from it shall be no larger than, in connection with those re- ceived from otaer sources, will be required for the economical administration of the govern- meut, the maintenance of the public faith und the gradual extinguishment of the public debt. While the country is nov at present, and may not be for many years to come, prepared for the ab- rogation of all restrictions upon foreign commerce, it i8 unguestionably prepared for a revenue tari The public debt isan incumbrance upon the pro- perty of the nation, and the taxes, the necessity for which it creates, by whatever mode and irom what- ever sources collected, are at last a charge upon the cousumers. ‘raxes should not, therefore, be In- creased, por will the taxpayers permit them to be permanently increased, for, the benefl: of any inter- est or section. FOr Dey or umortunately, as t question may be regardéd from different stand- points, the necessities of the government will be such for many years that large revenues must be de- rived from customs, 8o that @ strictly revenue tariut must incidentatly benefit our home manufactures. According to the estimate made by the Secretary an annual revenue of three hundred millions will be re- quired to meet the nec demauds upon the ‘reasury and for a satisfactory reduction of the pub- lic debt. How much of this amount shall be de- rived from customs it will be for Congress to de- termine. In examining this dificult ques- tion, the magnitude of our foreign debt and the necessity not =e of preventing ita inerease but of rapidly reducing it, must be kep| steadily in view. It may be nece: that @ lary! portion of our bonds now held in Europe be taken up with bonds bearing a lower rate of interest, pay- able in some European city, in order that they may be less likely to be returned to the United States at unpropitious times. Whether this 1s accomplished or not, it isof the last importance that our tax laws, and especially the tariff, should be so framed as to encourage exports and enlarge our commerce with foreign nations so that balances may be in our favor, and the interest and in due ume the principal of our foreign debt may be paid by our surplus produc. tions. Many of the investigations of the Kevenue Commissioner have been made with the view of furnishing Congress with the data necessary for o thorough examination and a wise determination of thia most important question, and it 1s fortunate that the subsidence of political excitement removes many of the Ln pen sre in the way of an impar- | consideration of it. “ine public debt on the 1st day of November, 1867, amounted to $2,491,604,450, aud consisted of the following items:— Debt Deming coin Interest...... 1,778,110,991 Debt bearing currency eras gre = 426,763,040 t not present for pay- Matured del ot pl per ashe 402,385,677 Total. .se.es---e% ++ $2,625, 502,848 Cash in the Treasury + 133,098,208 debt less cash in the Trea- eed che peeecesseeeseee ces $2,491,508,450 first day of November, 1868, it amounted to 120,552 and consisted of the followtug items:— V earing colin interest... $2,107, 60 Debt bearing currency interest 114,519,000 Matared debt not presented for pay- é 9,753,723 161,808 ++ $2,941,002, 672 1 019 fi 20,552 ments it appears y of November, 1567, 1563, increased 000 is chargeable $7,200,000 to the pur. Within the same period bt, between (ne Ist « November, the ael 1 Ist day of 71 tea. p munties $44,000,516, and at joass ,000 for interest on compound and seven three. ves, which had accrued prior to the frat of omper, 1867. If tiv extraordinary adva payments ha’ not been made the recelpts w have exceeded the expenditures 412. Con- sidering the heavy reduction of in 1 taxes made at (he laat session of Congress and the large expen- ‘ives winteh have attonded the military operations inst the Indiana on the frontier, and the maio- vo of large forces at expensive points in the ‘a States, this stateme the amount of the cennot be regarded an uo actory one. The nutes will, itis expected, be entirely paid within next three montis, and very Little interest, ex- hat which accrues upon the funded debt, is ter to be provided for, Should there be henve- ino extraordinary expondiiures and fo further ations of public moveys iu the form of bountios of additional subsidies to raliroad companies, or with proper economy in the administration of tue amendments general government and with jndicr of the revenue laws, and proper enfor the public debt, without oppressive t rapidly dinimished and easily extingu's! the period heretofore named by the Se: J ‘The ability of the United States to maintain their integrity against fusurreccion a8 Well as against & foreign enemy can no longer be doubted. The ques- tion of tuelr sbility, under democratic instiiutions, | to sustain @ large nawonal debt ts still to be de- cited, ‘That this question should be alirmatively set- tled, it 1s, in the ion of the Secretary, of the highest importand® that @he (ax-pay voters suvuld be encouraged by the fact gat the debt ia in tue progress of rapid ext pent, and it 1s nos to be a permanent burden uj them and their Ree er Ha it be underemned this x ove bs Ae erpetual encumbrance upon the property an: > Sustey of the nation, it 18 certainly to be feared that the collection of taxes necessary {0 ay the interest upon it may require the exercise o! wer by the central pororemaet inconsistant with republican- dangerous to the liberties of the people. Tue debt must be paid. Direct repudiation is an im- possibility; tadirect by further issues of legal tender notes, Wouid be madness, ‘Yo insure its payment without a change in the essential char- acter of the government, every year should witness a reduction of its amount aia’ adiminution of its burdens, The Secretary {@ confident that he ex- pressed the sentiments of the intelligent taxpayers of the country when he sald in his report of 1805:— at home, as it is desirable it , 1 need not be oppresnive. nbNers of the securities, 1 ie cumbrance upon the national estate. Neither saemtapeer of nor ite burdens are or can be or bo by people. Its influences are hiteepublcen.” {nade te wer of the Executive by patronage: i fa to, it fills the country must be distasteful to the people, with informers and tax gatherers, It is dangorous to the public virtue, because {t involves the collection and disburse- ment of vast sums of money and renders rigid national economy almost impracticable. It fs, in = word, # national burden, and the work of removing it, no matior how deatrable may be for individual investment, should not long be post ont As all true men desire to leave to their heirs unencumbered es.ates, so should it be the ambition of the United States to relieve their descendania of mottgage. We need not be us that fuure generations shall share the burden with us. Wars are not at an end and asteriiy will have enough to do to take care of the debts of jelr own creation. The Sec respectfully suggesta that on this aubject the expression of Congress should be decided and emphatic. It is of the greatest importance tn the management of a matter Of so surpassing interest that the right start should be made. Nothing but revenue will sustain the national credit, and nothing leas than a fixed policy for the reduction ef the public debt will be likely to prevent its ucrease, And in his report of 1867, when he remarked:— Old debts are hard debts to pay; the longer they are con- tinued the more odious they become, Ifthe present genera tion should throw the burden of this debt upon the next, it will be quite likely to be handed down from one generation to another, a perpetital if not @ constantly increasing burden upon thé people. Our country ts ful of enterprise and re- sources. “The debt wiil be lightened every year with great ra- pidity by the increase of wealth and population. With proper reduction {n the expenses of the government, and with A revenue systeun adapted to the industry of the country, and not oppreasing it, the debt may be pald before the expiration of the present century. ‘The wisdom of a poliey which pring about such a reautt is vindicated, in advance, By the his- tory of nations whose people are burdened with inherited debts, and with no prospect of relief for themselves or their posterity, In his last report the Secretary referred to the cbn- dition of the Treasury at the close of the war, and at some subsequent periods, alluding especially to the emergency in the spring of 1866, arising from the very large requisitions which were waiting for Ln ment, and the still larger juisitions that were be provided for to enable the War Department to rrearages due to the army, and other expenses which had already been incurred 1n the suppression of the rebellion, In briefiy reviewing the adminis- tration of the Treasury from April, 1865, he did not tuink it necessary to state how peat of the largo revenue receipts had been expet in the payment of debts incurred during the war; and he would not undertake to do it now did not misapprehension exist in the public mind in regard to the expendi- tures-of the government since the conclusion of hos- tilities prejudicial to both the law-making aad law- executing branches of the government, ‘the war was virtually closed in April, 1865. On the first day of that month the public debt amounted, according to the beoks and accounts of the Depart- Ment, to $2,366,955,077. On the first day of Septom- ber ioliowing it amounted to $2,757,689,571, having increased in four months $390,734,494. From that period if continued to deciine until November 1, 1867, when it had falien to $2,491,504,450. On the first day of November last it had risen to $2,627,120,562. By this statement it leer that, between the ist day of April, 1865, and the 1st day of September of the same year, the debt lucreased §300,734,404, and that between the 1st day of September, 1865, and the ist day of November, 1863, it decreased $230, 560,018, and that on the last day mentioned it was $160,174,475 larger than it was on the Ist day of April, 1865. Since then the Treayurer’s receipts from all sources of revenue have been as follows:— 5 For April, May and Jane, 1865. + $83,519,164 For the year ending June 30, 1866...... 558,082,620 For the year anding June 80, 1867, + 490,634,010 For the year ending June 30, 1863. . 638,083, June 30 to November, 18¢8....... + 124,652,184 * Total of receipts... teerececeeee+ +e $l,662,476,002 To which should be added the trerease of whe debt between the Ist day of April, 1866, and the 1st day of Novem- ber, 1863... ‘ 160,174,475 $1,822,050,537 t 8 of $1,522,65 537 was expended in the payment of the Interest and of other demands upon the Treasury in three years and seven months, being an average: annual expendi- ture of $508,646,661. Ii the statement of the public debt on the first day of April, 1865, had included all debts due at that time, and $1,822,660,537 had really been expended in payment of the interest on the public debt, and the current expenses of the government between that day and the first day of November last, there would bave been profignoy and a recklessness in the expenditures of the public moneys discreditable to the government and disheartening to taxpayers. Fortunately this is not the fact. ‘That statement (as 1s true of all other monthly statements of the Trea- sury) exhibited only the adjusted debt, accordt to the books of the Treasury, and did not, and coul not, include the large sums due to the soldiers of the great Union army (uumbering at that time little less tuan a million of men) for ‘pay’ and for “bounties,’” or on claims of various kinds which must of neces- sity have been unsettled. For the paspone of putting this matter right, the Secretary has endeavored to ascertain from the War and Navy Departments how much of their respective disbursements, since the ciose of the war, has been in payment of debts pro- pea chargeable to the expenses of the war. mn lollowing is the result of his inquiri: By the War Department. by the Navy Department... It bas been impossible y ment of the amount of such debts paid by the Navy Department, but sufficieat information has been re- ceived to justify the Secretary in estimating it in round numbers at $35,000,000, which is probavly an under rather than over estimate. The expenditures of the War ment have been furnished in de- tail, and are believed to be substantially correct. ‘These figures show that the money expended by the War and Navy Departments, between the 1st day of April, 1865, and the 1 boy / of November, 1363, on claims justly chargeable to the expenses of unted to... aoe oe $680,451, 125 To which should be added amount aa- vanced to the Pacific roads. Amount paid for Alaska... +++ $679,525,125 this sum from the amount of the re- venues, $1,662,476,062 and $160,174,475, the increase of the public debt—the remainder, $1,142,825,411, or an average of $318,929,028 per annum, is the amount nded in the payment of current ex- It is thus shown that within a period of three years ‘and seven months the revenues or the receipts from ail sources of revenue reached the enormous sum of $1,062,496,062, and that $630,431,125 were paid on debts which were actually due at the close of the ‘war and for bounties which, like the pay of the army, were a of the expenses of the war. Adding tue amount thas paid to the debt as exhibited by the books of the Treasury on the Ist day of April, 1865, 1 appears that the debt of the United States at that time Was $2,907,386, 203, and that the actual reduction has been $470,266,650; and but for the advances to the Pacific roads and the amount paid for Alaska would have been $519,660, 650. Nothing can better exhibit the greatness of the re- sources of this young nation than this statement, or show more clearly its ability to make ‘short work’’ of the extinguishment of the public debt, It will be borne in mind that these immense revenues have been collected while one-third part of the country was ina state of great destitution, resull from ‘ite terrible st le to separate itself from the Union, with its po! condition unsettied and its industry in a great degree paralyaed, and while also the other two-thirds were slowly recovering from the drain upon their productive labor and resources, a neces- eary accompaniment of a gigautic and protracted war. ‘The Secretary has noticed with deep regret indica- tions of a growing sentiment in Congress—aotwith- standing the favoravie exhibits which bave been from time to time made of the debt-paying power of the country—in favor of a postponement of the pay- ment of any part of the principal of the debt until the national resources shall be so increased as to make the payment of it more easy. If this seatiment Shall so prevail as to give direction to the action of the government he would feel that very great error had been committed, which could hardly fail to be a severe misfortune to the country, The people of the United States will never be so willing to be taxed for the purpose of reducing the debt as at the pre sent time, Now the necessity for its creation is bet- ter understood and apprecisted than it can be at a fatur » Now itis regarded by a large majority of taxp 8 a4 & part of the great price paid for the mainte of the government, and therefore © longer the reduction of it is post- Wii be the difficulties fa the way of accomplishing ft and the more mtolerabie wiil geem to be the burden of taxation, The Secretary, therefore, renews tie recommendations made th his iirst report, t ceri#in deduke sum be annually #ppiied to the payment of the interest and the prin- cipal of the [ he uint stiegested waa $200,000,000, As debt is considerably smaller its Maximum was estimated at the amount to be so applied annually might now safely be fixed at $175,000,000, according tothe estimate already maue in this report. The subject of the currency in which the five- twenty bonds are to be paid—agilated for some thine past—Wwas freely discussed during the recent politi- cal canvass, and inade w ques upon whic ties, to Kome extent, Were divided. ‘The pee: aud unfortunat Atation and discussion of this question have been damaging to tie credit of the government, both at home and abroad, by exciting apprenensions that the good faith of the nation might not be maintained, and have thus prevented our bonds from advancing m price, as they other- wise would have advanced, after tt was perecived that the maximum of the debt had beon reached, and have rendered funding at a low rate of interest too unpromising to be underiaken, In his report ta 1865 the Secretary used the following language:— Before concluding his remarks upon the national debt tho Secret ould that the credit of the fvetwonty Donde goed uuder ie eote Of Fubcuasy My 4M ee duDR BY, 1864, would be improved in Europe, and, coneoquer thoiemnries value advanced at home, 1? Co: should that the priocipal as well as the interest of these bon ts jato be paid in coin. The policy of the government in re-ard Its funded debt is well understood in the United States, but the absence of s provision in these acts that the principal of the bonde issued under them should be pata in coin, while ‘such & provision is contained in the act unier which the tan- fortion were issued, hn rented someagprehensiva in K:arape that the fvedtwenty Donde might be called ia at the ax of five ‘and paid fo United States notes. Althou,h it ts not doa ‘our beourities should be held out-of the i howd be of ie hee ees see eae ™ 5 revore, im- portant that all misnpprebensions on these pointe should be fenged ty aa wap aseuatse i Sabet Whns Without intending to eritiolse the inaction of Con- a in regard to ® matter of so great unportance, the Secretury does not hesitate tonay that, if his re- commendations had been would have been mach less ita oped tne reduce tion of the rate of interest would ere this have been in rapid progress, The Secretary does not think it necessary to discuss the question in this report. His opinions upon it are well to: ‘and the people, ‘they were definitely in his repors rely to suggest. a9 he, has ‘subetanaeeie een mi 3 je has su fore, that vi of the burden of = debt is to be obtained, not in a decrial of hapa credit, not in threats of repudiation, Nok ine further issue of irredeemable notes, not in arguments ad- Oressed to the fears of the bondholders, but in a clear and explicit declaration by ress that the national faith, in letter and spirit, shal! be invtolab! maintained; that the boads of the United States te, tended to bo negotiated abroad as well as at home are to be paid—when the time of payment arrives— in that currency which is alone ized as money in the dealings of nation with nation. Let Con: Bay this: patra § and there can. be but little doubt that the credit of the government will so advance that within the next two years the interest on the larger portion of the debt can be reduced to a satis- metty rate. He therefore carnestly recom that it be declared without delay, by tion, that the print of all bonds of the Unitea States 1s to be paid in coin. It fs also recommended that the Secretary bo au- thorized to issue $500,000,000 of bonds, $59,090,000 of which shall mature annually—the first $50,000,000 to be payable (principal and interest) in lawful money, the piincipal and interest of the rest in coin—and aiso such further amount of bonds as may be aeces- sary to take up the outstanding six per cents and the non-interest bearing debt, payaole in coin thirty years after date, and redeemabie at any time after tea years at the pleasure of the government, the in- terest to be paid semi-annually in coin and inno case to exceed the rate of five per cent; provided that the Secretary may in lus discretion make the principal and imterest of $500,000,000 of these bonds payable at such city or cities in Europe as he may deem best. The fact that, according to the recommendation, $50,000,000 of the bonds to be issued are to become duo each year for ten consecutive years, at the ex- piration of which time all of the bonds would be under the control of the government, would insure an annual reduction of $59,000,000 of the public debt and impart a credit to the other bonds which would ensure the negotiation of them on favorabie terms. Of the expediency of an issue of bonds correspond- ing, to some extent, in amount with those held in Europe—the interest and principal of which shall be , paid in the countries where they are todo neg. tiated—there can be but little doubt, On this nt the Secretary used the following language in his re- port of 1868:— “The question now to be considere is not how shall our bonds be preveated from going abroa—for a large amount bas aiready gone, and others will follow as long as our credis mends jot resolu- in good and tinue to buy more thao we can pay for ia avy other way—ut how shali' they be prevented from being thrown upon the home market, to thwart our efforts in restor- fug the specie standard? ‘The Secretary sees no practicable method o1 doing this at un early day, but by ‘subettuting for thom bonds, which being payable. principal and tn Enrope, will bo less Ike! returned when thelr retura the lenst to be desired, ‘The holders of our securities im Europe are now subject to great inconvenience and nob, Tito expense in collesting ‘their coupons: and ft is supposed that five per cent, or perhaps four and a haif per cent 4 Pa in London or Frankfort, could be substituted for six per cents, without any other’ expense to the United than the tritin fons to the agents through whom the exchany The saving of interess to be thus elfect vantages: of having our bonds in Europe piaced in the hands of sotual favestors; is too important to be disregarded. ‘The Secretary has nothing further to say on thig point than that carefut reflection has only strength- ened bis convictions of the correctness of the views cnet in the foregoing extract. on. In recommending the issue of bonds ests. 3 | lower rute of interest, to be exchanged for outstanding six per cents, the Secretary must not be undesstood as having changed his opinion in re- gard to the fond ppl or the wisdom of the recom- mendation in his last report:— That the act of March 8, I be 80 amended as to autho rize the of yu roasry to isgue six pee cons. gee Felner eae ese it way be thought advisable, at an eatlier day, to be ox ay, anged ‘and all other obligations of the Grampat, unesizth part of the interest on whieh ieee nt and paid over (8 the accordit g semi-annual by the gorernin Pe refers to what he th {a in advocacy of thad je re! w e then sal recommendation a3 an expression of his well cousid« ‘ered opinions at the present time, and he is re prevented from peating the recommendation b; the fact that it met with little approval at the last session, and has not grown into favor siuce. He sin- cerely hopes that the future history of the debt will vindicate the Sosy of those who are unable te rove the proposition. orrne following. is a statement of the public debt on the 1st of July, 1568: DEBT BEARING COIN INTERPST. Five percent bonds........$221,598,400 Six per cent bonds of 186: and 1868... «+ 6,893,441 Six per cent bonds, 1881.... 233,677,200 Six per cent five-twenty bol ++ 1,557,844,600 ++ 15,000, —— $2.033,003,648 DEBT BEARING CURRENCY INTEREST. Six per cent bonds $29,089,000 ‘Three year compound in- Bev ese nes ere it Navy pension fund a notes.....- iiirty 21,604,890 ree year seven- MOLES, scvree ses 25,534,900 Three per cent certificate: ei 126,228,100 MATURED DEBT NOT PRESENTED FOR PAYMENT, Three year seven thirty notes, duo August. 15, 1867, and June 16 and $12,182,750 Compound inte notes, matured June 10, July 15, August 15, October 16 and December 15, 1867, and May 15, 1808..... 6,556,920 Bonds, Texas indemnity . 266, Treasury notes, acts July 1; 155,111 6, 655,492 797,029 8,000 —_— 20,527,302 DENT BARING NO INTRREST, United States notes $856,141, 723, Fractional currency....... 626,951 Gold certificates of deposit. 678,640 $406,447,316 ————ee Total debt.........06+ os + $2,636,207, 069 Amount in Treasury, co! $100,500, 561 Amount in Treasury, cur- TOUCYo 000 ceceeeree 80,505,970 131,006,638 —_ Amount of dobt, less cash in the ‘ ‘The following is a statement of receipts and ex- panty for the fiscal year ending June 60, 1868:— eceipts from customs. ...$164,454,599 Receipts from lands. . 1,348,716 Receipts from internat reve | cel rom re’ Wiib aticess 191,087,689 Receipts from = mi a neous sources (of which amount there was re- ceived for premium on bonds sold to redeem Treasury notes the sum Of $7,078,203). se.ssseseeee ‘Total receipts, exclusive of loaus.... Expenditures for the civil service (of which amount there was paid for premul- um on purchase of ‘Trens- . ury notes prior to matu- TIty, $7,001,161)... .00+++++ $00,011,018 Expenditures for pensions and Indians... sree 97,883,000 Expenditares by War De- PATEMENE. ..0. cee cece 123,240,648 Expenditures by Navy De- PATEMONE....ccceeeeeeeeee 25,775,608 Expenditures for interest Ob tO public debt.....06 140,424,045 Total expenditures, exclusive of prin+ cipal of public debt... ++ $277,340,284 ‘The following Is a statement of recolpta and ex+ penditures for the quarcer endlig September 30, 1868:— + ‘The receipts from customs... $49,676,598 The receipts from lands. T1S,895 16,658 98,796,663 $405,638,008 The receipts from direct ta ‘The receipts from internal revenue . The receipts neous sources (Of whic amount there was re- ceived frou premium on bonds s to mt 03 the sum of 6,240,979 $05,802,668 Total receipts, exclusi we Jouas. Vv service (of which amount there was paid as pre. . mium on purchase of ‘Treasury notes prior Ww maturity $300,000,)... res for pensio $21,227,100 12,858,047 219,117 part Expenditures for partment... 6,004,785 Bxpenditures for ou public debt. 38,742,914 Total expenditures, ox. niusive of principal of lic debt. Ssebieee $105,162,470 ‘rio eorevary éstiiaavos tai, wudor exteting late,