FINANCES OF THE UNITED STATES. 



291 



Amount of public (loot, Jane 30, 1868 $2,783,420,870 21 



.nt of cash in Treasury 18!i,887,649 11 



Amount of public debt, June 80, 1866, less cash in Treasury $2, WO, 538,830 10 



Amount i.f public debt, October 81, 1866 $2,681,686,96* 84 



A'i.l .in, ..unt ni' i-M funded and unfunded debt included in debt of June 



80, 1860, not in statement 114,115 48 



$2,681,761,081 82 

 Amount of cash in Treasury 130,826,960 62 



Amount of public debt, October 81, 18C6, less cash in Treasury $2,551,424,121 20 



Net decrease $99,114,208 90 



Which decrease was caused as follows, by payments: 



Bonds, 6 per cent., acts July 21, 1841, and April 15, 1842 $14,500 00 



Bonds, C per cent., act of January 28, 1847 1,672,450 00 



Is, per cent., act March 81, 1848 617,400 00 



K.mcls, 5 per cent., act September 9, 1850 (Texas indemnity) 175,000 00 



Bonds, 6 per cent., act March 3, 1864 (Ten-forties). 149,750 00 



$2,629,100 00 



Treasury notes, 6 per cent., acts December 23, 1857, and March 2, 1861 6,150 00 



Temporary loan, 4, 5, and 6 per cent., acts February 25, March 17, July 11, 1862, and 



June 30, 1864 75,172,997 76 



Certificates of indebtedness, 6 per cent., acts March 1, 1862, and March 3, 1863 26,209,000 00 



Treasury notes, 5 per cent., one and two year, act March- 3, 1863 500,000 00 



Treasury notes, Seven-thirty, act July 17, 1861 11,200 00 



Compound-interest notes, 6 per cent., act June 80, 1864 10,500,000 00 



Treasury notes, Seven-thirty, acts June 30, 1864, and March 3, 1865 82,237,250 00 



United States notes, acts July 17, 1861, and February 12, 1862 8,804 00 



United States notes, acts February 25, July 11, 1862, and March 8, 1868 10,691,779 00 



Postal currency, act July 17, 1862 691,031 76 



Gross decrease $208,652,312 51 



From which deduct 'for increase of debt and decrease of cash in Treasury : 



Bonds, 6 per cent., act July 17, 1861 $7,050,000 00 



Bonds, 6 per cent., act March 3, 1865 101,738,500 00 



Bonds, 6 per cent., acts July 1, 1862, and July 2, 1864, issued to Central 



Pacific Railroad Co., Ac., interest payable in lawful money 3,840,000 00 



Gold certificates, act March 3, 1863 183,800 00 



Fractional currency, acts March 3, 1863, and June 81, 1864 1,208,165 12 



Cash in Treasury, decreased 2,560,588 49 



$109,538,103 61 



Net decrease $99,114,208 90 



The following table (see page 292) shows the 

 indebtedness of the United States on the 80th 

 of June, 1866. 



The reduction of the paper circulation under 

 the legislation of Congress above mentioned 

 w.1-; limited to $10,000,000 for the six months 

 ending October 1 2th, and $4,000,000 per month 

 thereafter. In the mean time the reduction of 

 these notes and of the notes of the State banks 

 was nearly balanced by the increase of the cir- 

 culation of the National Banks, and the pre- 

 mium on specie was about the same at the 

 close as at the beginning of the year. The 

 Secretary, therefore, devoted his attention to 

 measures looking to an increase of the efficiency 

 of the collection of the revenues, to the conver- 

 sion of the interest-bearing notes into five- 

 twenty bonds and to a reduction of the public 

 debt. At the same time he endeavored to use 

 such means within his control, as were best 

 calculated to keep the business of the country 

 as steady as possible, while conducted on the 

 uncertain basis of an irredeemable currency. 

 He therefore held a handsome reserve of coin 

 in the Treasury, being convinced by observation 

 and experience that, in order to secure steadi- 



ness in any considerable degree, while business 

 was conducted on a paper basis, there must be 

 power in the Treasury to prevent successful 

 combinations to bring about fluctuations for 

 purely speculative purposes. The Secretary 

 expressed his conviction that specie payments 

 were not to be restored by an accumulation of 

 coin in the Treasury, to be used at a future 

 day to redeem Government obligations, but by 

 quickened industry, increased productions, and 

 lower prices. Coin was therefore permitted 

 to accumulate when the use or sale of it 

 was not necessary for paying Government 

 obligations, or to prevent commercial panics, 

 or successful combinations against the national 

 credit ; and it has been sold whenever sales 

 were necessary to supply the Treasury with 

 currency, to ward off financial crises, or to 

 save the paper circulation of the country, as 

 far as practicable, from unnecessary and dam- 

 aging depreciation. 



The importance of specie payments is urged 

 by the Secretary, and in his remarks on the- 

 subject, he thus incidentally describes the con- 

 dition of the country: "When a paper cur- 

 rency is an inconvertible currency, and espo- 



