PUBLIC DOCUMENTS. 



709 



tual and estimated, $264,500,000. The expenditures 

 for the same period will be, actual and estimated, aa 

 follows: For the quarter commencing July 1, 1878, 

 actual expjnditures, $73,344,573 27 ; and for the re- 

 maining three quarters of the year the expenditures 

 are estimated at $166,755,426.73 making the total 

 expenditures $240,100,000, and leaving an estimated 

 surplus revenue, for the year ending Juno 30, 1879 

 of $24,400,000. 



The total receipts during the next fiscal year, end- 

 ing June 30, 1880, estimated according to existing 

 laws, will be $264,500,000 ; and the estimated ordi- 

 nary expenditures for the same period will be $236,- 

 320,412.63 ; leaving a surplus of $28,179,587.32 for 

 that year. 



In the foregoing statements of expenditures, ac- 

 tual and estimated, no amount is allowed fur the 

 sinking fund provided for by the act approved Feb- 

 ruary 25, 1862, which requires that one per cent, of 

 the entire debt of the United States shall be pur- 

 chased or paid within each fiscal year, to be set 

 apart as a sinking fund. There has been, however, 

 a substantial compliance with the conditions of the 

 law. By its terms, the public debt should have been 

 reduced between 1862 and the close of the last fiscal 

 year $518,361,806.28; the actual reduction of the as- 

 certained debt in that period has been $720,644,739.61, 

 being in excess of the reduction required by the 

 sinking-fund act $202,282,933.33. 



The amount of the public debt, less cash in the 

 Treasury, November 1, 1878, was $2.024,200,083.18 

 a reduction since the same date last year of $23,- 

 150,617.39. 



The progress made during the last year in refund- 

 ing the public debt at lower rates of interest is very 

 gratifying. The amount of four per cent, bonds 

 sold during the present year prior to November 23, 

 1878, is $100,270,900, and six per cent, bonds, com- 

 monly known as five-twenties, to an equal amount, 

 Lave been or will be redeemed as calls mature. 



It has been the policy of the Department to place 

 the four per cent, bonds within easy reach of every 

 citizen who d_>sires to invest his pavings, whether 

 small or great, in these securities. The Secretary of 

 the Treasury recommends that the law be so modi- 

 fied that small sums may be invested, and that 

 through the post-offices, or other agents of the Gov- 

 ernment, the freest opportunity may be given in all 

 parts of the country for such investments. The best 

 mode suggested is, that the Department be author- 

 ized to issue certificates of deposit of the denomina- 

 tion of ten dollars, bearing interest at the rate of 

 3.65 per cent, par annum, and convertible at any 

 time within one year after their issue into the four 

 per cent, bonds authorized by the refunding act, and 

 to be issued only in exchange for United States 

 notes sent to the Treasury by mail or otherwise. 

 Such a provision of law, supported by suitable regu- 

 lations, would enable any person readily, without 

 cost or risk, to convert his money into an interest- 

 bearing security of the United States, and the mon- 

 ey so received could be applied to the redemption of 

 six per cent, bonds. 



The coinage of gold during the last fiscal year was 

 $52,798,980. The coinage of silver dollars, under 

 the act passed February 28, 1878, amounted on the 

 23d of November, 1878, to $19,814,550, of which 

 amount $4,984,947 are in circulation, and the balance, 

 $14,829,603, is still in the possession of the Govern- 

 ment. With views unchanged with regard to the 

 act under which the coinage of silver proceeds, it has 

 been the purpose of the Secretary faithfully to execute 

 the law, and to afford a fair trial to the measure. 



In the present financial condition of the country, I 

 am persuaded that the welfare of legitimate business 

 and industry of every description will be best pro- 

 moted by abstaining from all attempts to make radi- 

 cal changes in the existing financial legislation. Let 

 it be understood that during the coming year the 

 business of the country will be undisturbed by gov- 



ernmental interference with the laws affecting it, and 

 W may confidently expect that the resumption of 

 specie payments, which will take place at the ap- 

 pointed time, will be successfully and easily main- 

 tained, and that it will be followed by a healthful 

 and enduring revival of business prosperity. Let 

 the healing influence of time, the inherent energies 

 of our people, and the boundless resources of our 

 country have a fair opportunity, and relief from pres- 

 ent difficulties will surely follow. 



The report of the Secretary of War shows that the 

 army has been well and economically supplied, that 

 our small force has been actively employed, and has 

 faithfully performed all the service required of it. 

 The morale of the army has improved, and the num- 

 ber of desertions has materially decreased during the 

 year. 



The Secretary recommends 



1. That a pension be granted to the widow of the 

 late Lieutenant Henry H. Benner, 18th Infantry, who 

 lost his life by yellow fever while in command of the 

 steamer J. M. Chambers, sent with supplies for the 

 relief of sufferers in the South from that disease. 



2. The establishment of the annuity scheme for the 

 benefit of the heirs of deceased officers, as suggested 

 by the Paymaster-General. 



3. ^The adoption by Congress of a plan for the 

 publication of the records of the War of the Rebel- 

 lion, now being prepared for that purpose. 



4. The increase of the extra per diem of soldier- 

 teachers employed in post schools, and liberal appro- 

 priations for the erection of buildings for schools and 

 libraries at the different posts. 



5. The repeal or amendment of the act of June 18, 

 1878, forbidding the ' ; use of the army as a posse co- 

 mitatus, or otherwise, for the purpose of executing the 

 laws, except in such cases and under such circum- 

 stances as may be expressly authorized by the Con- 

 stitution or by act of Congress." 



6. The passage of a joint resolution of Congress 

 legalizing the issues of rations, tents, and medicines 

 which were made for the relief of sufferers from yel- 

 low fever. 



7. That provision be made for the erection of a 

 fire-proof building for the preservation of certain 

 valuable records, now constantly exposed to destruc- 

 tion by fire. 



These recommendations are all commended to your 

 favorable consideration. 



The report of the Secretary of the Navy shows 

 that the navy has improved during the last fiscal 

 year. Work has been done on seventy-five vessels. 

 ten of which have been thoroughly repaired and 

 made ready for sea. Two others are in rapid prog- 

 ress toward completion. The total expenditures of 

 the year, including the amount appropriated for the 

 deficiencies of the previous year, were $17,468,392.65. 

 The actual expenses chargeable to the year, exclu- 

 sive of these deficiencies, were $13,306,914.09, or 

 $767,199.18 less than those of the previous year, and 

 $4,928,677.74 less than the expenses, including the de- 

 ficiencies. The estimates for the fiscal year ending 

 June 30, 1880, are $14,562,381.45 exceeding the ap- 

 propriations of the present year only $33,949.75; 

 which excess is occasioned by the demands of the 

 Naval Academy and the Marine Corps, as explained 

 in the Secretary's report. The appropriations for 

 the present fiscal year are $14,528,431.70, which, in 

 the opinion of the Secretary, will be ample for all the 

 current expenses of the Department during the year. 

 The amount drawn from the -Treasury from July 1 

 to November 1, 1878, is $4,740,544.14, of which $70,- 

 980.75 has been refunded, leaving as the expenditure 

 for that period $4,669.563.39, or $520,899.24 less than 

 the corresponding period of the last fiscal year. 



The report of the Postmaster-General embraces a 

 detailed statement of the operations of the Post-Of- 

 fice Department. The expenditures of that Depart- 

 ment for the fiscal yea; ended June 80, 1878, were 

 $34,165,084.49. The receipts, including sales of 



