FINANCES OF THE UNITED STATES. 



401 



of the latter was authorized; also to issue 

 $150,000,000 Government notes, including the 

 $100,000,000 authorized in January; also to 

 issue $50,000,000 of fractional notes in lieu of 

 the postage and revenue stamps for fractional 

 currency ; also to receive deposits of gold coin 

 and bullion, and to issue certificates therefor ; 

 and to issue certificates representing coin in 

 the Treasury in payment of interest, which, 

 with the certificates of deposits issued, shall 

 not exceed 20 per cent, beyond the amount 

 of coin and bullion in the Treasury. A tax 

 was also imposed on the circulation of State 

 banks of 1 per cent, half yearly. Thus, to re- 

 capitulate 



On the 1st of December the Secretary estima- 

 ted his available resources under existing 

 laws for the current vear ending Jan. 80th, 



1863, at ". $131,021,197 



To this should be added the balance of 5-20 

 bonds not deemed available before June 



80th, 1863 441,250,000 



On Jan. 17th, 1863,'^ongress authorized Govern- 

 ment notes 100,000,000 



On March 3d, Congress authorized 10-40 bonds 



for balance of 1863 800,000,000 



do. do. for 1864 600,000,000 



do. Treasury notes 400,000,000 



do. Government notes 50,000,000 



do. balance of $50,000,000 fractional notes 



in lieu of $20,000,000 postal currency 80,000,000 



do. 20 per cent on gold deposits, say 

 $15,000,000 8,000,000 



Total $2,055,271,197 



On the 1st of December there was a balance of 

 disbursements of $276,912.517 to be pro- 

 vided for over and above the available re- 

 sources of the current year, thus : 



Kesources $131,021,197 



Disbursements 276,934,714 407,934,714 



$1,647,386,488 



This was the provision made by Congress for 

 1863-'64, after clearing away all deficiencies es- 

 timated in December, 1862, for the fiscal year 

 ending June 30th, 1863. It was not all passed, 

 however, until the last day of the session. Mean- 

 while the Secretary was closely pressed, and 

 found it impossible to prevent a gradual increase 

 during the session in the amount of unpaid re- 

 quisitions, which finally reached $72.171,189. 



On the passage of this law, March 3d, 1863, 

 the Secretary proceeded to organize a system of 

 loan agents, the eminent firm of Jay, Cooke & 

 Co., of Philadelphia, being at the head. These 

 were allowed a commission of of one per 

 cent, on all the sales of stocks made by them, 

 of which Jay, Cooke & Co. received |, and 

 the sub-agents |. The first had connections in 

 all the States, and effective means were taken 

 to bring before the public the advantages of 

 the Government stocks as investments. The 

 state of affairs brought about by the emission 

 of paper money, causing a great rise in prices, 

 and a liberal realization of stocks of goods at 

 those high prices in paper, eminently favored the 

 views of the loan agents. Those who had sold 

 goods and realized money, were desirous of so 

 investing it, that it would not again depreciate 

 in value. If they repurchased goods, and specie 

 payments should be again approximated, they 

 would lose as much as they had made in the 

 VOL. in. 26 A 



rise. "Whereas invested in a stock, which was to 

 be paid interest, if not principal, in gold, it would 

 retain its value. The same abundance of 

 money, and rise in commodities, had induced 

 farmers and others indebted, to economize the 

 use of high-priced goods, and sell their own 

 commodities, applying the proceeds to debts 

 and mortgages. The insurance companies and 

 others receiving these payments, became thus 

 equally anxious to place the money on a specie 

 basis of investment. 



All circumstances thus combined to facilitate 

 the efforts of the agents, and by the 1st of May 

 the Secretary had raised from the 5-20 bonds 39 

 millions; upon certificates of indebtedness, 7 

 millions ; by the issue of United States notes 

 and fractional currency, 92 millions, and on tem- 

 porary loans, at 4 and 5 per cent., 31 millions; 

 making in the aggregate 169 millions. The 

 Secretary said : " The loan act and the nation- 

 al bank act were followed by an immediate 

 revival of public credit. Success quite beyond 

 anticipation crowned the efforts of the Secre- 

 tary to distribute the five-twenty loan in all 

 parts of the country, as well as every other 

 measure adopted by him for replenishing the 

 Treasury. The result was that within two 

 months after the adjournment of Congress the 

 whole mass of suspended requisitions had been 

 satisfied, all current demands promptly met 

 and full provision made for the pay of the army 

 and the navy." The long and tedious strug- 

 gles of the Secretary had now achieved a great 

 success, of which he thus speaks: "During 

 the remainder of the fiscal year no embar- 

 rassments attended the administration of the 

 finances except those which are inseparable 

 from vast expenditures." Dyeing the fiscal 

 year thus closed, the Secretary for the first 

 time had the gratification to see that the dis- 

 bursements did not greatly exceed, while the 

 increase of the public debt did not equal the 

 estimates submitted to Congress. Thus, while 

 it was estimated that the public debt of the 

 30th of June, 1863, would reach the sum of 

 $1,122,297,463, its actual amount on that day 

 was $1,098,793,181 ; and while the disburse- 

 ments for the year were estimated at $693,- 

 346,321, the real total was $714,709,995. 



The receipts from the ordinary sources of 

 revenue duriag the fiscal year ending June 

 30th, 1863, were $124,443,313, while the esti- 

 mates of the Secretary of these receipts for the 

 year were $180,405,345. From the customs, 

 land sales and miscellaneous sources, the re- 

 ceipts were much above the estimates. But 

 from the direct tax and internal revenue they 

 were enough less to make the difference be- 

 tween the receipts and estimates. The Secre- 

 tary expected to receive from these two latter 

 sources $97,677,020, whereas he actually re- 

 ceived during the year only $39,951,130. It is 

 to his credit that he expected to receive such 

 a large amount from taxes, as it shows that he 

 was unhesitating to use largely this real source 

 of the strength of the national finances. The 



