302 



FINANCES OF THE UNITED STATES. 



he lived, his exalted virtues drew around Mm a 

 large circle of friends. 



FINANCES OF THE UNITED STATES. 

 The aspect of the fiscal affairs of the United 

 States was much improved at the close of the 

 year. An increased consolidation of the pub- 

 lic debt, and a reduction of its amount, had 

 been made. An expansion of credits, usually 

 excited by an excessive and depreciated cur- 

 rency, was prevented by the tendency to con- 

 traction maintained by the Government. In- 

 dustry began to turn to more healthy channels, 

 and freedom from financial embarrassment ex- 

 isted. Thus improvement took place in the 

 general condition of the country. 



A statement of the receipts and expenditures 

 of the Government for the fiscal year ending 

 June 30, 1867, was made by the Secretary of 

 the Treasury in his annual report of December, 

 1866. This statement consisted of the actual 

 receipts and expenditures for the first quarter 

 of the fiscal year, ending September 30, 1866, 

 and an estimate for the remaining three quar- 

 ters. 



The estimates of the Secretary for the re- 

 maining three quarters of the fiscal year, end- 

 ing June 30, 1867, gave a surplus of estimated 

 receipts over estimated expenditures of $79,- 

 330,856. This amount was somewhat exceeded 

 by the actual surplus at the close of the year, 

 as may be seen by the following statement of 

 the actual receipts and expenditures to June 

 30, 1867 : 



Receipts from Customs ... $176,417,810 88 



Lands.. 1,168,57576 



Direct Tax 4,200,233 70 



Internal lievenue 266,027,537 43 



Miscellaneous sources 42,824,852 50 



$490,634,010 2T 



The expenditures, during the same year, were : 



Civil Service ... $51,110.027 27 



Pensions and Indians 25,579,083 48 



War Department 95.224,415 63 



Navy Department 143,781.591 91 



Interest on Public Debt 31,034,011 04 



$346,729,124 33 



Thus making the actual surplus from the or- 

 dinary sources of revenue, $143,904,880.84. 



Loans paid during the year $746,350.525 96 



Receipts from Loans , 640,426,910 29 



$105,923,615 65 



The actual receipts and expenditures for the 

 first quarter of the fiscal year ending June 30, 

 1868, were as follows : 



Receipts from Customs $48,081,907 61 



Lauds 287,46007 



Direct Tax 647,070 83 



Internal Revenue. . . . 53,784,027 49 



Miscellaneous sources 18,361,462 62 



. ' $121,161,928 62 



Expenditures for Civil Service $13,152,348 08 



Pensions and Indians 10,484,476 11 



War Department . . . 30,537,056 35 



Navy Department.. 5,579,704 67 



Int. on Public Debt. 38,515,640 47 



. ! $98,269,226 18 



Loans paid $200,176,368 34 



Receipts from Loans 135,103,282 00 



Reduction of Loans 



The Secretary estimates that the receipts and 

 expenditures for the succeeding three quarters 

 will be as follows : 



Receipts from Customs $115,300,000 00 



Lands 700,000 00 



Internal Revenue 155,000,000 00 



Miscellaneous sources. 25,000,000 00 



The expenditures for the same 

 period, according to his estimates, 

 will be 



For the Civil Service $37,000,000 00 



For Pensions and Indians. . . . 22,000,000 00 



For the War Department, in- 

 cluding $24,500.000 for 

 bounties 100,000.000 00 



For the Navy Department 22,000,000 00 



For the interest on the Public 



Debt 114,000,000 00 



$296,000,000 00 



$295,000,000 00 



Leaving a surplus of estimated receipts over 



estimated expenditures of $1,000,000 00 



These estimates are based on the general 

 average of the receipts and expenditures for the 

 previous three quarters of a year. It was 

 anticipated that, by the adoption on the part 

 of Congress of measures largely to reduce the 

 expenditures in all branches of the Government, 

 a steady reduction of the debt could be con- 

 tinued. 



A change took place during the year in the 

 amount of the debt, which was a reduction of 

 $138,737,716.77. The change in the character 

 of the debt is manifest by a reference to its 

 elements at the close of the war. Besides the 

 United States notes then in circulation, there 

 were nearly $1,300,000,000 of debts in the form 

 of interest-bearing notes, temporary loans, and 

 certificates of indebtedness, a portion of which 

 were maturing daily ; and all of which, with 

 the exception of the temporary loans, must be 

 converted into bonds, or paid in money, before 

 October 16, 1868. A redundant and depre- 

 ciated currency existed ; prices of the necessa- 

 ries of life had advanced with the increase of 

 the currency ; reckless habits and extravagant 

 expenditures began to prevail, and business be- 

 came unsteady and fluctuating. These circum- 

 stances controlled the measures adopted by the 

 Treasury Department relative to the debt of 

 the country, and required it to convert the in- 

 terest-bearing notes, temporary loans, etc., into 

 gold-bearing bonds, and to contract the paper 

 circulation by the redemption of the United 

 States notes. Hence, these temporary loans, 

 certificates of indebtedness, and the five per 

 cent, notes have all been paid with the excep- 

 tion of some small amounts ; and the compound- 

 interest notes have been reduced from $217,- 

 024,160, to $71,875,040; the seven and three- 

 tenths notes have been reduced from $830,- 

 000,000, to $337,978,800; the United States 

 notes, including fractional currency, from 

 $459,505,311 to $387,871,477, while the cash 

 in the Treasury has been increased from $88,- 

 218,055 to $133,998,398, and the funded debt 

 has been increased $686,584,800. 



The following is a statement of the indebt- 

 edness of the United States on June 30, 1867 : 



