FINANCES OF THE UNITED STATES. 



Ml 



The amonnt due the sinking fund for the 

 year was $36,965,604.68, leaving a deficiency 

 on this account of $80,076,803.70. Compared 

 with the previous fiscal year, the receipts for 

 1879 have increased $16,711,159.70, in the fol- 

 lowing items : In customs revenue, $7,079,367.- 

 60; in internal revenue, $2,979,985.84; in pre- 

 mium on loans, $1,496,943.25; in repayment 

 of interest by Pacific Railroad companies, $1,- 

 840,246.07 ; in profits on coinage, $1,284,176.- 

 84; and in miscellaneous items, $2,580,440.10. 

 There was a decrease of $647,853.94, as fol- 

 lows : In sales of public lands, $154,962.31 ; in 

 premium on sales of coin, $808,997.92; in 

 semi-annual tax on banks, $115,552.64; and 

 in proceeds of sales of Government property, 

 $68,841.07 ; making a net increase in the re- 

 ceipts from all sources for the year of $16,063.- 

 305.76. 



The expenditures show an increase over the 

 previous year of $32,223,781.26, as follows: In 

 the War Department, $8,271,512.88; in the 

 Interior Department, $8,561,292.11 (Indians 

 $576,828.80, and pensions $7,984,463.31); in 

 the interest on the public debt, $2,827,074.85 ; 

 and in the civil and miscellaneous, $12,563,- 

 851.92. There was a decrease of $2,240,174.- 

 63 in the Navy Department ; making a net in- 

 crease in the expenditures of $29,983,556.78. 



The receipts and expenditures for the first 

 quarter of the fiscal year ending June 30, 1880, 

 and the estimates for the three remaining quar- 

 ters, were as follows : 



The estimated expenditures for 1879-'80 

 show an increase of 24 millions over those of 

 the preceding year. The unusual charge of 

 arrears of pensions makes up this whole ex- 

 cess. There is a decrease of about 8 millions 

 in the interest account, and another of about 

 4^ millions in the civil and miscellaneous ex- 

 penses, offset by an increase in military ex- 

 penses of over 4 millions, and in regular pen- 

 sions of 2 millions. The expenditures for the 

 first quarter and estimates for the remaining 

 three quarters of the year are as follows : 



Total receipts, actual and estimated (288.000,000 00 



Total expenditures, actual and estimated... 264,000,000 00 



Leaving a balance of. $24,000,00000 



After applying the balance of the special de- 

 posit of United States notes held in the Trea- 

 sury for the redemption of fractional currency, 

 amounting to $8,375,984, to the payment of 

 arrears of pensions, as directed in section 8 of 

 the act approved June 21, 1879, the increased 

 revenue derived during the months of July, 

 August, and September of this fiscal year, 

 1879-'80, was fully absorbed by current ex- 

 penses, and the payment of $16,874,249.60 

 arrears of pensions accruing under the act ap- 

 proved January 25, 1879. Notwithstanding 

 these unusual demands, the Department was 

 able to purchase and apply to the sinking fund, 

 out of the surplus revenues for the month of 

 October, $10,050,000 six per centum bonds of 

 1881, and $676,050 five per centum bonds, act 

 of March 3, 1864, the latter of which is the 

 excess of redemptions of these bonds over is- 

 sues of four per cents under the refunding 

 acts; and unless unexpected appropriations, 

 available for expenditure within the year, are 

 made by Congress, the surplus revenues, in 

 addition to paying off the balance of arrears 

 of pensions, will probably enable the Depart- 

 ment to apply to the sinking-fund account, 

 during the year, the sum of $24,000,000. 



It is contemplated in the estimates of reve- 

 nue that the receipts will be about the ordina- 

 ry amount, and that the increase in the first 

 quarter was abnormal and not likely to con- 

 tinue. They will therefore be sufficient for the 

 demands of the Government unless Congress 

 should make some unusual appropriations, or 

 repeal or reduce existing taxes. Should this be 

 the case, it will be necessary to provide other 

 sources of revenue to meet the deficiency, and 

 for this purpose a moderate duty on tea and 

 coffee and an internal tax upon manufactures 

 of opium are recommended. Opium particu- 

 larly is recommended, because large quantities 



