FINANCES OF THE UNITED STATES. 



337 



United States Notes, Jan. 80, 1864 $481,178,670 84 



" " " 1865 482,687,96600 



" " Oct. 80, 1865 428,160,56900 



Jan, 1,1866 426,281,38975 



The amounts of fractional currency outstand- 

 ing at the same dates were as follows : 



Fractional and postal currency June 80, 1864. . $22,994,877 25 



June 80, 1865.. 25,005,82876 



" Oct. 80, 1865. . 26,057,469 20 



Jan. 1,1866.. 26,000,42062 



The fiscal year 1866, which commenced on 

 July 1, 1865, showed the following results for 

 the quarter ending September 30, 1865 : 



Balance in Treasury, agreeable to warrants, 



Julyl, 1865 $858,809 15 



Receipts from loans applicable 



to expenditures $188,778,097 22 



Receipts from loans applied to 



payment of public debt 188,409,163 85 



277,182,260 57 



Receipts from customs 47,009,588 08 



Receipts from lands 132,890 68 



Receipts from direct tax 81,111 80 



Receipts from internal revenue, 96,618,885 65 

 Receipts from miscellaneous 



sources 18,893,729 94 



. 162,186,200 55 



Total $440,226,770 27 



Expenditures. 



For the redemption of public 



debt $188,409,168 35 



For civil service 10,571,460 99 



Fir Pensions and Indians 6,024,241 86 



For War Department 165,369,237 82 



For Navy Department 16,520,669 81 



For interest on public debt. . . . 36,173,481 50 



$373,068,254 83 



Leaving a balance in the Treasury on October 

 1,1865, of $67,158,515 44 



For the remaining three quarters of the year 

 the Secretary presents the following estimates, 

 which show a deficiency of over $100,000,000 

 for the year. Eeceipts for three quarters end- 

 ing June 30, 1866 : 



Balance in Treasury October 1, 1865 $67,158,515 44 



Receipts from customs $100,000,000 00 



Receipts from lands 500,00000 



Receipts from internal re venue, 175,000,000 00 

 Receipts from miscellaneous 



sources 30,000,000 00 



305,500,000 00 



Total :$372,658,515 44 



Expenditures for the three quarters ending 

 June 30, 1866 : 



For the civil service $32,994,052 88 



For pensions and Indians 12,256,790 94 



For the War Department 807,788,750 57 



For the Navy Department 85,000,000 00 



For interest on public debt. . . 96,813,868 75 



484,853,462 64 



Deficiency $112,194,947 20 



The estimates of the Secretary for the fiscal 

 year next following and terminating on June 

 30, 1867, show a surplus exceeding $100,000,000. 

 This is virtually recovering the $100,000,000 de- 

 ficiency for the fiscal year ending June 30, 1866, 

 and nothing more. It will be seen that the 

 estimates differ from those of the preceding 

 year, chiefly by the reduction of the expen- 

 ditures of the "War Department. Thus upon 

 the important expenditures of that department 

 depends the estimated deficiency or surplus. 

 The receipts for the year ending June 30, 1867, 

 are estimated as follows : 

 YOL. v. 22 A 



From customs $100,000,000 00 



From internal revenue 275,000,000 00 



From lands 1,000,000 00 



From miscellaneous sources.. 20,000,000 00 



$896,000,000 00 



The expenditures, according to the estimates, 

 will be 



For the civil service $42,165,599 47 



For pensions and Indians 17,609,640 23 



For the War Department 89.017,41 618 



For the Navy Department 48,982,457 50 



For interest on public debt 141,542,068 50 



$284,817,181 88 



Leaving a surplus of estimated receipts over 



estimated expenditures, of $111,682,618 12 



The deficiency estimated for the current fiscal 

 year should be increased by the sum of $32,- 

 636,901 of public debt to be provided for during 

 the year. The most important subject, how- 

 ever, connected with the finances of the United 

 States relates to the public debt. This has so 

 suddenly grown to such vast proportions as to 

 overshadow all the resources of the country. 

 Its amount on June 30, 1865, with the nature 

 of the various obligations, are shown in the 

 table on the following page. 



It will be noticed that the legal tender notes 

 known as currency or circulating medium form 

 a large item of this indebtedness. The amount 

 of this paper circulation on October 31, 1865, 

 was as follows : 



1. United States notes and fractional cur- 

 rency $454,218,088 20 



2. Notes of the National Banks 185,000,000 00 



3. Notes of State Banks, including outstand- 

 ing issues of State Banks converted into 



National Banks 65,000,000 00 



Total $704,218,038 20 



The amount of notes furnished to the national 

 banks up to and including the 31st of October, 

 was a little over $205,000,000, but it was esti- 

 mated that $20,000,000 of these had not then 

 been put into circulation. In addition to the 

 United States notes, there were also outstand- 

 ing $32,536,900 five per cent. Treasury notes, 

 and $173,012,140 compound-interest notes, of 

 which it was estimated that $30,000,000 were in 

 circulation as currency. 



By this statement, without including 7 

 notes, many of the small denominations o: 

 which were in circulation as money, the paper 

 circulation or money of the country amounted 

 on October 31, 1865, to the sum of $734,218,- 

 038.20. This feature of the public debt is the 

 first to attract attention in any consideration 

 of the subject. The legality of these notes first 

 presents itself to the mind of the Secretary. 

 His views on the question were thus ex- 

 pressed : 



The right of Congress, at all times, to borrow 

 money and to issue obligations for loans in such form 

 as may be convenient, is unquestionable ; but their 

 authority to issue obligations for a circulating me- 

 dium as money, and to make these obligations a legal 

 tender, can only be found in the unwritten law which 

 sanctions whatever the representatives of the people, 

 whose duty it is to maintain the Government against 

 its enemies, may consider in a great emergency ne- 

 cessary to be done. The present legal-tender acts 

 were war measures, and while the repeal of those 

 provisions which made the United States notes law- 



