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credit beyond their several proportions of the tax. In consequence, however, of incomplete settlements, only the sum of $1,485,103 61 appears on the books as received into the treasury.

While the receipts from other ordinary sources of revenue thus closely correspond with the estimates, or largely exceed them, the receipts from internal revenue have alone disappointed expectation. The estimate, indeed, was made of the operation of a law recently enacted, and necessarily imperfectly executed; but such care had been taken to obtain correct premises, that it was hardly thought possible that the conclusion deduced from them could be wide of the truth. Under the instructions of the Commissioner, at the instance of the Secretary, a very competent gentleman was for some time employed in ascertaining, with the aid of practical men, conversant with business, the probable amount of revenue from each object of taxation. The result of his inquiries was the estimate which, sanctioned by the Commissioner, was believed to be correct by the Secretary, and therefore submitted to Congress.

Experience has demonstrated its error. The estimate was $85,456,303 73, while the actual receipts were $37,640,787 95. A part of the deficiency may be attributed to the imperfect execution of the law, and a part to the changes: made in it by Congress after the estimate was made ; but it is not probable, had neither

cause operated to reduce receipts, that the revenue from this source would have exceeded half the estimated amount. It is clear that the law, unless materially amended, will not produce the revenue expected from it. The whole of the receipts and disbursements for the last fiscal year may

be more easily understood from a somewhat more formal statement.

The receipts, estimated and actual, then, for the last fiscal year, ending on the 30th of June, 1863, were, including balance from the preceding year, as follows:

Estimated.

Actual. From customs..

$68, 041, 736 59 $69, 059, 642 40 From lands...

88,724 16 167, 617 17 From miscellaneous....

2, 244, 316 32

3,046, 615 35 From direct tax...

11, 620, 717 99 1, 485, 103 61* From internal revenue

85, 456, 303 73 37, 640, 787 95 Balance from last year.

13,043, 546 81 13, 043, 546 81

Total receipts from all ordinary

$180, 495, 345 60 $124, 443, 313 29

sources

The additional sums, actual or estimated, necessary to meet disbursements, were, of course, derived, or estimated as derivable, from loans.

See on last page explanation of difference between the apparent receipt and the actual, which ncarly or quite equalled the estimate.

national banking system-had received the sanction of Congress and the President. The salutary effects of these two great acts were soon conspicuous.

Notwithstanding the aid afforded by the additional issue of the United States notes, under the joint resolution of January, the Secretary had found it impossible to prevent a gradual increase, during the session of Congress, in the amount of unpaid requisitions. Those which were unsatisfied at the beginning of the session were indeed discharged, and large sums were applied to new demands for current disbursements. But the aggregate of disbursements, remaining necessarily unpaid, increased steadily, notwithstanding all efforts to prevent it, until it reached, at the close of the session, the sum of $72,171,189 41.

The loan act and the national banking act were followed by an immediate revival of public credit. Success quite beyond anticipation crowned the efforts of the Secretary to distribute the five-twenty loan in all parts of the country, as well as every other measure adopted by him for replenishing the treasury. The result was, that within two months after the adjournment of Congress the whole mass of suspended requisitions had been satisfied, all current demands promptly met, and full provision made for the pay of the army and navy. During the remainder of the fiscal year no embarrassments attended the administration of the finances except those which are inseparable from vast expenditures. Notwithstanding these expenditures, it is gratifying to be able to state that during the last year the total of disbursements did not greatly exceed, while the increase of the public debt did not equal, the estimates submitted to Congress by the Secretary at the last session. Thus, while it was then estimated that the public debt on the 30th of June, 1863, would reach the sum of $1,122,297,403 24, its actual amount on that day was $1,098,793,181 37; and while the disbursements for the year were estimated at $693,346,321 48, the real total was $714,709,995 58.

The aggregate receipts from all sources, including the balance from the preceding year, as shown by the books of the treasury, were, during the last fiscal year, $901,125,674 86, and the aggregate disbursements $895,796,630 65; leaving a balance on the 30th of June, 1863, of $5,329,044 21. But sums borrowed during the year, and applied during the same time in payment of debts, affect only nominally the total of receipts and of disbursements. The sums thus borrowed and applied during the last fiscal year amounted to $181,086,635 07. This aggregate, therefore, should be deducted from both sides of the statement, making the true amount of receipts, including balance from last year, $720,039,039 79, and the true amount of disbursements $714,709,995 58. The balance, of course, remains the same.

It is gratifying, also, to be able to state, that while debts did not reach the amount anticipated, the receipts from all sources of income, except internal revenue, exceeded the estimates. Thus the receipts from customs, estimated at $68,041,736 59, were actually $69,059,642 40; from lands, estimated at $88,724 16, were $167,617 17; and from miscellaneous sources, estimated at $2,244,316 32, were $3,046,615 35. Direct tax receipts were estimated at $11,620,717 99, and this amount, or nearly this amount, has been received in the form of

payments

for military supplies and services by the States, for which they are entitled to

credit beyond their several proportions of the tax. In consequence, however, of incomplete settlements, only the sum of $1,485,103 61 appears on the books as received into the treasury.

While the receipts from other ordinary sources of revenue thus closely correspond with the estimates, or largely exceed them, the receipts from internal revenue have alone disappointed expectation. The estimate, indeed, was made of the operation of a law recently enacted, and necessarily imperfectly executed; but such care had been taken to obtain correct premises, that it was hardly thought possible that the conclusion deduced from them could be wide of the truth. Under the instructions of the Commissioner, at the instance of the Secretary, a very competent gentleman was for some time employed in ascertaining, with the aid of practical men, conversant with business, the probable amount of revenue from each object of taxation. The result of his inquiries was the estimate which, sanctioned by the Commissioner, was believed to be correct by the Secretary, and therefore submitted to Congress.

Experience has demonstrated its error. The estimate was $85,456,303 73, while the actual receipts were $37,640,787 95. A part of the deficiency may be attributed to the imperfect execution of the law, and a part to the changes: made in it by Congress after the estimate was made ; but it is not probable, had neither

cpuse operated to reduce receipts, that the revenue from this source would have exceeded half the estimated amount. It is clear that the law, unless materially amended, will not produce the revenue expected from it.

The whole of the receipts and disbursements for the last fiscal year may be more easily understood from a somewhat more formal statement.

The receipts, estimated and actual, then, for the last fiscal year, ending on the 30th of June, 1863, were, including balance from the preceding year, as follows:

Estimated.

Actual. From customs..

$68,041, 736 59 $69, 059, 642 40 From lands...

88, 724 16

167,617 17 From miscellaneous.

2, 244, 316 32 3,046, 615 35 From direct tax...

11, 620, 717 99 1,485, 103 61* From internal revenue

85, 456, 303 73 37, 640, 787 95 Balance from last year.

13, 043, 546 81 13,043, 546 81

Total receipts from all ordinary

$180, 495, 345 60 $124, 443, 313 29

sources

The additional sums, actual or estimated, necessary to meet disbursements, were, of course, derived, or estimated as derivable, from loans.

* See on last page explanation of difference between the apparent receipt and the actual, which ncarly or quite equalled the estimate.

The disbursements, estimated and actual, were as follows:

Estimated. The Civil Service...

$32, 811, 543 23 Pensions and Indians.

5,982, 906 43 War Department..

747, 359, 828 98 Navy Department.

82, 177, 510 77 Interest on debt.

25, 014, 532 07

Actual. $23, 253, 922 08

4, 216, 520 79 599, 298, 600 83 63, 211, 105 27 24, 729, 846 61

Total gross estimate....

$893, 346, 321 48 $714, 709, 995 58 But this amount, it was supposed, would

remain undrawn at end of year, and was therefore deducted from the gross estimate

200,000,000 00

Making actual estimate...

$693, 346, 321 48

In his last report the Secretary stated that if the appropriations should equal the estimates, the balance unexpended at the end of the year would probably reach $200,000,000, and that this sum should therefore be deducted from the departmental estimates, to make the aggregate correspond with probable conditions. The above statement shows that the aggregate of estimates, thus reduced, was $693,346,321 48, while the expenditures were $714,709,995 58, exceeding the reduced estimates $21,363,674 10.

Froin the actual expenditures, $714,709,995 58, there must be deducted the actual receipts, $124,443,313 29, in order to show the amount derived from loans, $590,266,682 29, which sum added to the amount of the debt on the 1st July, 1862, $508,526,499 08, (heretofore erroneously stated at $514,211,371 92,) gives as the true amount of debt on the 1st July, 1863, $1,098,793,181 37.

The estimates for the current fiscal year 1864 next claim attention. These are founded on actual receipts and disbursements for the first quarter, which ended September 30, 1963, and on opinions formed upon probable events and conditions as to the other quarters.

The following statement exhibits what is actually known, and what, after careful reflection, the Secretary thinks himself warranted in regarding as probable:

For the first quarter, ending September 30, 1863, the actual receipts were: From customs...

$22, 562, 018 42 From internal revenue.

17,599, 713 59 From lands.....

136, 182 09 From miscellaneous sources.

641, 542 04

Total actual receipts for first quarter ...
To which add balance July 1, 1863....

40, 939, 456 14
5, 329, 044 21

Making total receipts of first quarter, except loans.......

$46, 269,500 35

$46, 268,500 35

Brought forward.... For three remaining quarters, ending on the 30th of June, 1864, it is estimated there will be received:

From customs.....
From internal revenue...
From lands ....
From miscellaneons sources

$50, 000, 000 00
60, 000, 000 00

300, 000 00
5, 000, 000 00

115, 300, 000 00

Making a total of receipts from ordinary sources, actual and estimated, and including balance, of...

$161, 568, 500 35 To which add the actual and estimated receipts from loans . 594, 000, 000 00

Making a total of actual and estimated receipts from all sources, for 1864....

$755, 568, 500 35

The expenditures may be stated as follows :

For the first quarter, ending September 30, 1863, the actual disbursements have been : For the Civil Service...

$7, 216, 939 31 For Pensions and Indians...

1, 711, 271 95 For War Department.

144, 387, 473 97 For Navy Department.

18, 511, 618 86 For interest on public debt..

4, 283, 628 37

Actual expenditures for first quarter.

$176, 110, 932 46 For the remaining three quarters the estimates, founded on appropriations and estimated deficiencies, are as follows: For the Civil Service....

$27,050, 872 21 For Pensions and Indians...

6, 129, 042 86 For War Department.

741, 092, 037 14 For Navy Department.

94, 467, 567 74 For interest on public debt...

54, 881, 508 01

923, 621, 027 96

Making a total aggregate of actual and estimated expenditures of.....

$1,099, 731, 960 42 But as these estimates include all unexpended balances of

appropriations from former years, they are necessarily much too large, and there may be safely deducted from their aggregate, as likely to remain unexpended at the close of the fiscal

year,

the
sum of....

350,000, 000 00

Leaving the total actual and estimated expenditures for 1864 $749, 731. 960 42

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