FINANCES OF THE UNITED STATES. 



SUMMARY OP THE PUBLIC DEBT ON DECEMBER 1, 1871. 



297 



BONDS ISSUED TO THE PACIFIC RAILWAY COMPANIES, INTEREST PAYABLE IN LAWFUL MONEY. 



The Pacific Eailroad bonds are all issued 

 under the acts of July 1, 1862, and July 2, 

 1864; they are registered bonds of the de- 

 nomination of $1,000, $5,000, and $10,000 ; 

 bear 6 per cent, interest in currency, payable 

 January 1st and July 1st, and mature thirty 

 years from their date. 



By the estimate of the Secretary of the 

 Treasury, there would be a balance of $71,794,- 

 991.68 for the fiscal year ending June 30, 1872. 

 For the fiscal year ending June 30, 1873, he 

 also estimated a balance of $57,294,963.01, 

 which might be applied to the payment of the 

 principal of the public debt. Therefore, he 

 suggested for the future that his previous pol- 

 icy of paying not less than fifty millions of 

 the principal of the debt annually should be 

 maintained, and such reductions be made in 

 taxation as the margin remaining would per- 

 mit. This margin, he estimates, will amount 

 to thirty-six millions of dollars for the fiscal 

 year commencing July 1, 1872. He would re- 

 duce the receipts of internal revenue sixteen 

 millions of dollars by dispensing with those de- 

 rived from all internal sources, except from 

 stamps, spirits, tobacco, and malt liquors. 

 These latter sources would furnish about one 



hundred and ten millions of dollars. The re- 

 ceipts from customs he would reduce twenty 

 millions of dollars by a reduction of certain 

 duties. He says : 



The revenue from customs under existing laws, 

 and from lands and miscellaneous sources, would 

 amount to about two hundred and thirty-three mill- 

 ions more, making a total revenue for that year of 

 three hundred and forty-three millions of dollars. 



The expenses of the Government, not including 

 the amount payable on account of the sinking fund, 

 are estimated at $273.025,773.99. 



If to this sum be added fifty millions of dollars for 

 payments on account of the public debt, including 

 the amount due on the sinking fund, there remains 

 a balance of about twenty millions, within which re- 

 ductions may be made in the revenue from customs. 

 This amount, added to the reductions proposed under 

 the internal revenue laws, gives a total reduction of 

 thirty-six millions. 



Under this view he recommends the reduc- 

 tion of the duties on salt to the extent of fifty 

 per cent. ; the duty on bituminous coal to fifty 

 cents per ton ; the reduction of the duty on 

 raw hides and skins ; and the removal of all 

 duties from a large class of articles produced 

 in other countries, which enter into the arts 

 and manufactures of this country, and which 

 are not produced in the United States, and the 



