FINANCES OF THE UNITED STATES. 



251 



Expenditures for the civil service 



(of which amount there was 



paid, for premium on purchase 



of Treasury notes prior to ma- 



turity t $7,001,151) .............. $60,011,018 



Expenditures for pensions and 



Indians ........................ 27,883,069 



Expenditures by War Department 123,246,648 

 Expenditures by Navy Depart- 



ment .......................... 25,775,502 



Expenditures for interest on the 



public debt ..................... 140,424,045 



Total expenditures, exclusive of principal 

 of public debt .......................... $377,340,284 



For the fiscal year commencing on July 1, 

 1868, and ending on June 30, 1869, the receipts 

 and expenditures of the first quarter, ending 

 September 30, 1868, were as follows : 

 The receipts from customs ........ $49,676,594 



714,895 

 15,536 



The receipts from lands 



The receipts from direct tax ...... 



The receipts from internal revenue 



The receipts from miscellaneous 

 sources (of which amount there 

 was received, from premium on 

 bonds sold to redeem Treasury 

 notes, the sum of $587,725) ...... 



Total receipts, exclusive of loans 



Expenditures for the civil service 

 (of which amount the re was paid, 

 as premium onpurchase of Treas- 

 ury notes prior to maturity, 

 $300,000) $21,227,106 



Expenditures for pensions and In- 

 dians.. 12,358,647 



Expenditures for War Department 27,219,117 



Expenditures for Navy Depart- 

 ment 5,604,785 



Expenditures for interest on pub- 

 lic debt 38,742,814 



Total expenditures, exclusive of principal 

 of public debt $105,152470 



Estimates were made by the Secretary of 

 the Treasury of the receipts and expenditures 

 of the remaining three-quarters of the same 

 year ending June 30, 1869 which were as 

 follows : 



From customs $125,000,000 00 



From lands 1,000,000 00 



From internal revenue 100,000,000 00 



From miscellaneous sources 20,000,000 00 



Eeceipts $246,000,000 00 



And that the expenditures for the same pe- 

 riod, if there be no reduction of the army, will 

 be 



For the civil service $40,000,00000 



For pensions and Indians 18,000,000 00 



For War Department, including $6,000,000 



bounties 66,000,000 00 



For Navy Department 16,000,000 00 



For interest on public debt 91,000,000 00 



Expenditures $231,000,000 00 



Thus making an estimated surplus, under the 

 present laws, of $15,000,000. 



The increase of the public debt during the 

 year ending October 31, 1869, was $35,625,202. 

 The expenditures which caused this increase 

 were of an extraordinary nature, and con- 

 sisted in part of $24,152,000 advanced to 

 the Pacific Railroad, and $7,200,000 paid for 

 the purchase of Alaska. Some other extraor- 

 dinary advances were made, which increased 

 the expenditures: thus, $44,060,515 were paid 

 for bounties, and not less than $4,000,000 for in- 

 terest on compound and seven and three-tenths 



notes which had accrued prior to November 

 1, 1867. Excepting these unusual expendi- 

 tures, consisting of donations of public money 

 in the form of bounties and additional subsi- 

 dies to railroad companies, the receipts would 

 have exceeded the expenditures $43,787,412. 



During the period the amount of debt bear- 

 ing coin interest has increased $712,393,459. 

 The change in the nature of the debt is shown 

 by the following details : 



The public debt on the 1st day of November, 

 1867, amounted to $2,491,504,450, and consist- 

 ed of the following items : 



Debt bearing coin interest $1,778,110,991 



Debt bearing currency interest 426,768,640 



Matured debt not presented for payment. . . 18,237,538 

 Debt bearing no interest 402,385,677 



Total 



Cash in the Treasury 



Amount of debt, less cash in the Treasury. $2,491,504,450 

 On the first day of November, 1868, it 

 amounted to $2,527,129,552, and consisted of 

 the following items : 



Debt bearing coin interest $2,107,577,950 



Debt bearing currency interest 114,519,000 



Matured debt not presented for payment. . . 9,753,723 

 Debt bearing no interest 409,151,898 



Total $2,641,002,572 



Cash in the Treasury 113,873,019 



Amount of debt, less cash in the Treasury. $2,527,129,552 



Other causes existed to produce a dispro- 

 portionate relation between the receipts and 

 expenditures as compared with former years. 

 A large reduction of the internal taxes was 

 made at the session of Congress beginning 

 December, 1867, especially on manufactures. 

 On the other hand, large expenditures were 

 necessary to sustain the military operations on 

 the frontier and the forces stationed in the 

 Southern States. These considerations give 

 a very favorable aspect to the public debt. 

 The following table (see next page) gives a 

 statement of the indebtedness of the United 

 States on June 30, 1868. 



Since the/ close of the war in 1865 a period 

 of three years and seven months the receipts of 

 the Government from all sources have reached 

 the sum of $1,662,496,062. Of this large sum 

 there were $630,431,125 paid on debts which 

 were actually due at the close of the war, and 

 for bounties, which, like the pay of the army, 

 were a part of the expenses of the war. If 

 this amount is added to the debt as exhibited 

 by the books of the Treasury on April 1, 1865, 

 it appears that the debt of the Government 

 was at that time $2,997,386,203, and that the 

 actual reduction has been $470,256,650. 



A further comparison of the facts presented 

 at different periods will serve to demonstrate 

 the tendency of the financial affairs of the 

 Government, and to illustrate the important 

 results which have been achieved. At the 

 close of the war in April, 1865, the cash in 

 the Treasury was $56,481,924, while there 

 were requisitions waiting for payment to the 

 amount of $114,256,548. In addition, there 



