402 



FINANCES OF THE UNITED STATES. 



real discrepancy, however, was less than ap- 

 pears above ; thus the direct tax was estimated 

 to yield $11,620,717, whereas only $1,485,103 

 appears on the books to have been received 

 into the Treasury, but nearly the balance was 

 received in the form of payments for military 

 supplies and services by the States, for which 

 they were entitled to credit beyond their sev- 

 eral proportions of the tax. The discrepancy 

 between receipts and estimates of the internal 

 revenue arose from the imperfection of the 

 machinery to raise the tax. Thus the Secre- 

 tary says : " A part of the deficiency may be 

 attributed to the imperfect execution of the 

 law, and a part to the changes made in it by 

 Congress after the estimate was made ; but it 

 is not probable, had neither course operated to 

 reduce receipts, that the revenue from this 

 source would have exceeded half the estimated 

 amount. It is clear that the law, unless ma- 

 terially amended, will not produce the revenue 

 expected from it." The additional sums, actual 

 or estimated, necessary to meet disbursements 

 were, of course, derived, or estimated as de- 

 rivable, from loans. 



The receipts and expenditures for the fiscal 

 year ending June 30th, 1863, maybe summarily 

 stated as follows : 



RECEIPTS. 



From customs $69,059,642 40 



Fromlands 167,61717 



From miscellaneous 8,046,615 85 



From direct tax 1,485,103 61 



From internal revenue 87,640,787 95 $111,899,766 48 



From loans: 



Bonds 7.30, 3 years 17,263,450 00 



6,5-20 175,087,25944 



" 6,20years 76,56000 



Treasury notes, 2 years 1,622 00 



U. 9. notes 291,260,000 00 



U. 8. stocks, Oregon loan... . 145,050 00 



Temporary loan deposits 115,226,762 21 



Certificate's of indebtedness.. 157,479,261 92 



U. 8. fractional currency. ... 20,192,456 00 776,682,861 57 



Total receipts $888,082,128 05 



Balance, July 1st, 1862. 18,048,516 81 



Total resources 901,125,674 86 



EXPENDITURES. 



The Civil Service $23.253,922 08 



Pensions and Indians 4,216,520 79 



War Department 599,298,600 80 



Navy Department 63,211,105 27 



Interest on debt U, 729,846 61 



Total $714,709,995 58 



Debt paid. Treasury notes .. 2,211,700 00 



Temporary loan 67,516,993 48 



U. 8. stocks of 1842 2,580,748 86 



Bonds, 7.80 71,MO 00 



Oregon debt 69,5&0 00 



U. 8. gold notes 58,177,890 00 



U. 8. notes 2,099.000 00 



Certificates of indebtedness. . 60,859,758 28 895,796,630 65 



Balance In treasury, July 1st, 1863 $5,829,044 21 



Of the sums raised by loans $181,086,<535.07 

 were applied to the payment of existing funded 

 and temporary debt, which was only an ex- 

 change of new debts for old ones. Of the sum 

 thus exchanged 54J millions contracted in for- 

 mer years and making with interest about $56,- 

 000,000, are not chargeable to the expenditure 

 account proper of 1862-'63. The actual receipts 

 and expenditures were therefore as follows : 



Eecelnts, taxes, bonds, &c., and 'balance on 



band $124,443,313.48 



Current expenditures. 714,709,995.58 



Deficit $590,266,682.10 



This deficit, or amount paid by loans, added 

 to $508,526,499.08, the amount of the debt on 

 July 1st, 1862, makes the amount of the debt 

 July 1st, 1863, as before stated, viz.; $1,098,- 

 793,181.37. 



Under the system adopted by the Secretary 

 for conducting the finances, they were divided 

 into two branches ; the ordinary receipts and 

 expenditures, and the extraordinary receipts 

 and expenditures. It may not be amiss to no- 

 tice more particularly the results of his man- 

 agement of the former during the fiscal year 

 ending June 30th, 1863. The revenue derived 

 from all the ordinary sources, including di- 

 rect taxes and internal revenue, amounted 

 to $111,399,767. The ordinary expenditures 

 were for the civil service, pepsions, and In- 

 dians, $27,470,442 ; estimating the disburse- 

 ments for the War and Navy Departments at 50 

 per cent, above those of the last year of peace, 

 they would amount to $41,884,375. The in- 

 terest on the public debt was $24,729,846. 

 Total $94,084,663, leaving an excess of $17,- 

 315,104 over and above all ordinary expenses 

 and interest of the public debt, old and new, 

 accruing in and for the year. If to this be 

 added the deficit in receipts arising under the 

 direct tax and internal revenue laws, in con- 

 sequence of their defective operation, and the 

 credit to States, amounting to over 57 millions, 

 the excess of ordinary receipts over ordinary 

 disbursements would have been about 75 mil- 

 lions. This might have been applied to the ex- 

 traordinary expenditures, or set apart as a sink- 

 ing fund for the reduction of the public debt. 

 At the close of the previous fiscal year ending 

 June 30th, 1862, the ordinary receipts had fallen 

 short of the ordinary expenditures over thirteen 

 millions. The national stock sold at 106} on 

 the 1st of July, and at 107 before the end of 

 the month. 



The confidence of the people in the credit of 

 the Government was strikingly exemplified 

 during 1863 by the sale of the 5-20 bonds. On 

 the 1st of May only about 64 millions had been 

 taken. From that time forward the sales 

 averaged 48 millions per month, until the 

 entire loan was taken. At the same time other 

 loans and credits were negotiated, which to- 

 gether give an average of 55 millions every 

 month for nine months. 



By the table at the top of the next page, com- 

 piled from the statements of the Register's Of- 

 fice accompanying the Secretary's Report, it 

 appears that the receipts of revenue from all 

 sources for the five months ending November 

 30th, 1863, amounted to $452,959,392, and the 

 expenses and payments during the same period 

 were $469,862, 375. The returns of the re- 

 ceipts for November not being complete, the 

 sum of $800,000 is added by the Register for 

 the deficiency. 



