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Report Of The Secretary Of The Treasury

Report Of The Secretary Of The Treasury image
Parent Issue
Day
27
Month
December
Year
1861
Copyright
Public Domain
OCR Text

The following cornprises the roost important portions of the annual report of tlie Secrctarj of the Tïeasnry: Aftcr i-eviewing the action of the spe" eial seasion of Congress ou the subject of finauces, detailing the success of the measurea then adoptcd, Mr. Chase recapitulatea the results, showing that nearly two hundred millions of dollars have been loancd the Government by the people. The following is the statement : Tliere were paid to creditors, (ir exch&nged for coin at par, at different dates n July and Auaust, pix per cent. to year's nots, to theamount of $ll,019;031 66 Tliere was borrowed, at par, in the ame rnonths, ujion sixiy days' six per cont. notes, thesumof 12,877,750 00 Thero was borrowed, at par, orfthe lOtli of Augnat pon tlnee years' 7.30 bonds, issucd for the most part to snbscribers to the National Loan 50,000X100 00 ïliere was borrowed, on the lst of October, upon like securities 50,000,000 00 There was borrowed at par frv ctiTtm tipr rfnt, OU tllö lOtli of November, upon twenty years' six per cent, bonds, reduced ti the equivalent cf sevens, induding interest 45,795,478 48 Tliere liave been issued, and vvere in cnculalion and oq deposit with tlie Treasurer on the SÖth of November, of United Su'es notes, payableondemand 21,550,325 00 Makins an agregate, realized from loans in various formsof $197,242,588 14 EECEIPTS OF REVENUE3 FROM DUTIES . Whilo success tlius complete has so far attended the mcasures relating to loaos, thc Sccretary regreta to say that thc reccipts oí' revenue from duties have not as yet fulfilled thc expectations indulged at thc date of his July report. At the date of his report, the Secreary counted on a revenue from customs, for the financia! year, 1862, of fifty se ven millions of dollars, but circumtances now constrain him to reduce thïs estáñate to $32.198,602 55. The receipts from customs for the first juarter, eiiding the BOth September were 37,198,002 55; whilo the receipts 'or the three renaining quarters can not )o safely estimated at more than 25,)00,0U0, making the aggregate for the 3rear the sum just mentioned, of S32,198,602 55. Í.AND RECEIPTS. The estimat.es of receipts landsaud miscellaneous sources must also be ■cduced from $::,0ü0,000 to 2,354,062 89, of which $354,062 89 were received duriug the quarter onding 30th Septem ter, Ï861, and 82,000,000 are the estimated receipts of the three remainiug quarters. DTRBCT TAX. Thc only othc-r source of revenue whieh prumises an addition to thc resources of the ycar is the direct tax authorizcd by Congress, from which, if in creased to thc limit proposed by the Secretary, and assumed by the States, the further sum of 20,000,000 may be oxpected. The aggregate of revenue from all sources may, therefore, be estimated at 354,552,065 44, whic-h is less by $25,447,334 50 than the estimatc of July. THE COST OF THE ARMY EXCEEDS THE 8T1HATB9. These estimates, it will be remembered, contemplated expenditurcs in all departincnts, and for all objects, to the amount of 318,519,581 87. Of this sum 185,296,397 19 woro for additioual appropriations required by the Department of War, and $17,652,105 09 for appropriations already made for that depavtment. The basis of the estimates for these additional appropriations was the understanding that it would bo ne cessary to bring into the field, for the supprossion of therebellion, two hundred and fifty thousand volunteers, in place of the scventy-üve thousand draftcd militia originally callcd out, and to incroase the regular army by the addition of eleven new regiments, making a total force, including the regular army already organizcd, of about three hundred thousand men. Congress, auiniated by the same desire for a short and decisivo coutcst, went beyond this recommendatiou of the President, and authorized the aeceptance of volunteers in such numbers, not exceeding five hundred thousand, as he miglit deern necessary. ïhe aetion of Congress, therefore, contemplated the eniployment, if nceessary," of a force, iucluding the existing regular armj', of about five hundred and fifty thousand men. THE CAUSE INCREA8ED NUMBER 07 MEN IN THE U. S. SERVICE. This large inorease of the army iu men and oínccrs, and tlie liberal additions made by Congress for pay and ra tions, have augmented, and must necessarily augment expenditure far beyond the limit iudieatcd by tho original estimate.s; and the liiuits must be Ptill further extended by the additional suius required for the inerease of the navy, and for other object. ADDITIONAL APPROl'RIATION'S NEUBSKARY. ' Of these additional appropriations $47,985,506 61 were authorized by acts of the last sesión, and S143, 130,027 76 are now asked for, makirifj; an aggregate inerease, including $22,787,9-33 31 for iudefinite appropriations and redemption of témpora ry debt, beyond the eatimates of July of 213,904,427 08. % DUTIES ON TEA, COFPEE AND SUGAR TO BE INCREASED, BUT NO OTHER ALTERAT1ON MADE IN THE TARIFJ?. The Seerctiiry begs leavo to recominend that the duties on tea, cofFeo and sugar bo incfeased to the rates heretofore proposed ; that is to say, to two and oue halt' eents on brown sugar; to thrce ceuts on clayed sugar ; to twenty cunts per pound ou green ta, and tofive cents per pound on uoffee ; and that no othor altoruliou.s of the tarjff be made duriug the present session of Conress, unless furthcr experienee or changed circum stances shall demónstrate the necessity i or expedieney of them. All considerai tions of prudence and patriotism seem to concur in favor of giving to t'ao exi tarifiF a full and fair trial, and of rraurviñg tlic work of revisión, modification anti permanent seUlement for more propitious davs. . " TIio provisions made at the last scasion was of two descriptieng ; first, a direct taz of $20,000,000, of wlnch $14,840,618 waa apportioned to States and Territoriefl actnowlfidgiog their ob iops to the Union, and $5,153,082 to States the citizens of which repudíate hose obligationa and are in open rebelion ; and, seoondly, au iaternal duty of ,hree per centum ou an snnuai income, with certain exceptions and dedüctions. . l.T.W TAXES PKOPOSED. In the judgnient of the Socretary, it will bc necessary to iitcrease the d'rect ax so as to produce froni the loyal States ilone a revenuo of at least twenty milions of dollars, and to lay such dulies on lilis and disiüled liquora, on tohacco, on jank notes, on earriaffts, on hijacien, on yaper evidenccs of dtlt and instrument ror convcyance of property, and other ike sulj ects oftaxation, at tiiiU produce un equai additional sum The existing -irovision fur au income tax, just in its rinciple, inasrnuch r.., it remares largest contributiou;; from largest meanS, may, )osfiibly, and if sómowhat modifica will, robably, producá ten millions of dollars nore. The aggregatie taxatiomvill thus i-uiount to fifty ïnillions of dollars, NINETY MILLICUtS 01' B0ÜA.M NF.CESSAEY FOB THE CURRENT ÏCAR. But if the sum is largc tho means of he peoplc aro. ulso large, and tlu; object o be attained bya có n öJ a porion of them to the publio jétnw ia M'icelcss. The real pvoperty of the loyal ?tates is valvied, in round nunibers, at even and a half thousands of iiiilllions he personal property at three and a half housands of millions, and the annual urplus earnings of the loyál peope at not less thun three hundred mülion of; lollars. Four milis on eueh dollar, or wojifths of one per cent. on the real and personal property of the loynl States wdl yroduce forty four millmnis of dollars, to ohich siim the proposed income tax will irobahly add ten millions. Tho whole um will be little more than one-sixth of he surplus earnings of the country, FUETIIER EELIANCE TO BE PLACED UP0N LOASS. It will be seen at a glanoe that the amount to be derived froiu taxation fornis )ut a sniall port ion of the sums required for the expenses of the war. For the rest, reliaucc must be placed upon the oans. % THE BEST MEAKS OF PROSECUTING THE WAR. To enable the Government to obtain he neeessary nieaus for prosecuting the var to a successful issue, without unue:cssary cost, is a problera whieh must üigage the most oareful attcntion of the LegisIatuTe. The Secretary has priven to this proAca the best eonsideration in his power, ind now be;s leavc to submit to Oon;rss the result of his refleetions. THE PAPKR CURRNCY CF THE COUNTRY. The circulution of the barüu of the United State, on the lst iaf ofjaneary, 1861, was cernpvhd'tebt $203,000,767. Of this eirculation 150,01)0,000, in round numbcrs, was in States now loyal, iacludjng Western Virginia, and $50,000,000 in the rebellious States. The wholc ef this eirculation constitutes a loan without interest frovü tlie people to the banks, costing theui nothing except the expense of issue and rcdeuiption and the ointerest on the specie Itept on haac for ttie latter purpose ; and it dsgerrea eonsideration whether sound poliey does note rquire that the advantages of this loan be transferred, in part atloast, from the banks, represen ting only tbc iuter ests of the stookholders, to the Govcrn ment, representing the aggregate luiersts of the whole people. BANK Cl'KItEXCV UNCONSTITUTIONAL. It has been wcll questioned by the most eminent statesmen wlietlier a curreney of bank notes, issued by local institutions Tinder State laws, is not, in faot, proliibited by the national constitution. ■ Howcvcr this may be, it is too olear to be reasonab-ly disputcd that Cougres3, under its constitutional powers to lay taxes, to regúlate coinmerce, ünd to regálate the value of coin, possesses ampie authority to control the credit circulation vhich enters ro largely into the transactions of coinmeree and aiFccts in bo many ways the valöeöf coia. THE LAKQKST CIECÜLATIOÑ OF I.ILLS 13 FROM 1SS0LVENT BAN:;8. In the iudgroent c.f flio Scerptary the time has arrived when Oongpess should exfCÍM tiiis authority. The value of tte existing ban': note drcnlation dependí o,. the laws of thirty-four States and the , characler ofsome ai.-ieen hundred private áorporahons. it la usually t'.'rmshed ín grealest proportions bv n&fitutions oí' loust actual capita!. CirculatioD, commonty, is in t he ihveisfl ratio of solvency. Weü fom.iieí] institiiticrs, of !íiLe nntl iotíd capital, have n general, cotuwrtively little circviktim;, while weak corporalion.s almosl nvariablv roek to sustain themselves by obtaining í'roni the pecple the laigcst possible credit in ibis fonn. THE TWO PEOPOSED PLANS TO RTiMEHY TIIB EVIL. The Seototarv ttiinka it oossiolo to combine witli this protectior. a provisión fór circulation safe to tlie conimunity nd comement for tiio povernment. Two plans for effeeting Utirf object ave guggested. The fiíst oonUmplate tlie gradual withdrawl from circulatioD of the notes of private corporatíons, n'.id for lbo issue, in their stpad, of United BtatOT notes, payable in ooin on detóanri, in ainounts sufficient for the usel'ul endi of i represeotative cmrency. THE SECOKD PLAN. The eecond plan guggputed, teniaiwfor examinHtion. lts principal feature are (lsl) a ciicuhiiion of no-, bearipa comraon impresión, and autbenlicated by a common authoritv; (2d) the rodeinption of lliese notcí by AUOcilttiöDl ïul inst itutions to wbicb Ihpy mp.y be delivered for isèuftj and (3d) tlie necnvil.v of tliat redemption by the pledge of United States stocks, irnd aa adequate provisión of specio , In Ihis plan the ppople, in tlicir ordinary business, would fine! the ndvantageg of uniforunitj in currency ; of uniformity I in seeurity ; of effoctual sufeguaru, if effec tual feguard is possible, against depreciaron; und of protection from losses in discounts and exchanges. TIE SECURITY OF THE UNION INCREASED BY IT. A furthsr and important advantage to the people may be reasonably expecled in tha ir.creased Becurity of the Ur,ion,spiicging from tho comnion interest in its preservatioB, croated by the distribution of its stocks to associations througbout the country, as the basis of their circulation. A NATIONAL CURRENCY. T!io Srfwetwy entovtains the opinión tliat if .1 credit circulation in any forra bo clt'siiable, it is most de&irable in this. The cotes tlrns issued and secured would, in bis judgment, forra the safest curreiicy whicb this countrj' has ever enjoyed, while tbeii receivability forall governrnent dues, except castoras, would niake tbem, whereever payable, of squal valué as a currency in every part of the Union. FINAHCK8 FOR FIFTEEN FISCAL MONTIIS REVIE'.VED AND COliPARED WITH THE NEXT IWENTY-ONE MONTH3. For the fust quarter of the current fiac;il year, comrnencing lst July, 1861, the rereipts and expenditure aro asceitair.ed, and for tlie ïèmaining three quarters, ending 30th June, 1862, are estimated as folio ns : For tlie flrst (juarter the actual reeeipts from custorn3, laiuls, and miscellaneous soiuces, incloding tlie hallauce of #2,257,066 80 were $9,809,731 21 For the second, tbird and fourtli qunrters tlie estimaled rer.eipts are 27,000,000 00 To these sums must bc added the amounl reaüzed from loans lo all farms prior to Deo. 1, 1861, as already stated 197,242,588 14 Aüd tbere must be added also lbo amount to be reaiized fiora additional loans already authonzed 75,449,075 00 And tbere must be added also tlie ain't anticipatcd from the direct tax 20,000,000 00 Making the total reeeipts.. $329,501, 994 38 OX THE OTIIKR UiSD : For the firít quartor the actual oxpenditures were..-. 98,239,783 09 fat the second, tliird, and fourth the estimüted èxpendituns, ouder nppropriations already made for public service, ineluding civil list, Interior, War and Navy depai tinonts and public dbt and interest, are.. 3O2;O35,7G1 21 Vnd the estimaled ex]ienditures under the sdditional appropriations now asked for are : - ?or civil servico and increased interest $5,160,438 99 And for the War & Navv Departmeots 187,964,488 77 143,139,927 76 MaTíina a total of actual and e-ihnated oxpwiditore under existing and asked appropriatH.ua of 8543,406,422 07 From whicli deduct actual and e.itimatcd receipts, as above stated 329,501,994 38 .Mkin2 an appavent amount for wliich recoursc must be had to loans of $213,904,427 68 A ÏURTIIER LOAN OF TWO HUNBKED MILI.IONS OF DOLLARS NKCESSARY. It s to be observed, .however, Lbat in the iimount estimated foi expendilures, $22,S70,398 50 is estimated for public debt, paytnent of a considerable part of whicli wil] not probably be demanded, and ihat some eipeusesare estimated for which may be ret rene bad J so that the wbole atnonnt of Io!iii6 reqiiiied, in addition to the amount ilready authorized, will eertaiiily not exeeed $200,000,000. ALL EVESTÜALITIESTO BE PREPARED FOR. It is the part of wisdom, however, to be prepnred for all eventualities, and the Secretary, therefore, submita the ostimates of the severa! departments for the fiscal ymr 1863, based on the Supposed con tiiuianco of' the war, as follows: - THE ESTIMATED EXPEXDITÜKE8 ABE: For the civil Hst, Inclnding foreign intercouise and mis collneouí expenses other than on account of the public debt $23,086,071 23 For the Interior Department (Indiana and pensions) . 4,102,962 96 For the War Department 860,169,986 61 " " Navy " 45,101,994 18 lio Debt- ïtedemption $2,883,304 11 li'tCT. debt i.'ontiacled bei'oie July 1, 1862 29,032,636 42 In'rst on debt to be ciiitracted after Ju!y 1, 1862 10,000,000 00 42,810,330 53 Making an asarcate of estii'iute-rt expendituros of $170, 331,215 61 On the othcr hand, tlio estimated receipts are : From cuMt'ms li'.mid rum 01dinary sources $15,800,000 Frora direct tax 20,000,000 Froiu interna] daties, includiog inconio tax 30,000.000 Malcibg an Sggregate ofestimated receipts of 00,800,000 00 And lea ri 115 abalance to be providcd fot of $379,531,2-15 51 The whoic amount required fvum loaus may tberefore be tlius stirtcd : - - For tlie fiscal ycar 1S02, nuder BïiMtug lawa, $75,4-10,675 00 For ido fisad year 18G2, mder laws to be i iiantod, 200.000,000 00 For lio üscal year lfetí-í, also uiulcr laws to beenacted, 879,531,245 51 ig asi nggregate of LC54:!80,920 51 The totai may be Btateifn rouiul mimbors at siï liuiulred and ülty milljon of diiliars. THE PUlïLIC DEBT IN 18t)U, 1861, 18'Ï2 AND 1863, It only romains, in ordar to complete the view oí lbo iinauciü! sil iiülimí, tu submit a ii ni of the public tlebt as it was on tlm Ist. ilny of .Tulv, 1860 and 1801, and witl be, pcordiog 10 tbc estimates presen ted, at üie date in each of the vears 1802 and ÍH03. ''ie staieinent, in briof, is se follows : - Qn Uie Ist day of July, 1800, tb pubiic debl {(4,760,703 08 On ihu Lat day of July, 1861, ihe public áelt was 90,3G7,828 68 Ou the IM day of July, 183, the pufello áoW will be 512,372,802 93 On the Ist itíiy of.JiJy, 18G3, tho jiublic debt will bo 897,372,802 98 The public debt on tho Ist of Jnly, I ' 1863, if tho war be protracted until tbát I [ime, en the FCale of expenses contemplated by the es-tiniates, will 1p, in rcund numbers, nino hnncired millions of dollars. The amount of the public dobt in the year 1816 wa $127,334,930 74, and in twenty years it was pid off by the people. The eróunlry, even if the lojal States only are regarded, can sustain and pay off in thirty years the debt to whicli rebellion ncw exposes us, with hardly greater proportional contributions from inerpased and increasing resources than that debt made necessary. OPERATION3 OF THE MINT. The oper.-.tions of the Mint during the last year worc large beyond precodent. - The net amount of bullion received waa $72,146,571 01 ; the amount coined was: of pold coins, $00.694,237 ; of silver coins $2,005,700; of cent coins, $101,000; of gold bar, $20,015,163 64; and of silver bars, $278,006 94; rnnking the total coinar-a of the year 83,693,707 58. Lf the bullion deposited, 854,149,865 32 were received at the Assay Office in New York; of the gold bar, Í1 9,948,758 88, and of the silver $187,078 63, in value, were stamped at the s:ur,e office. Of Si79n.92n.862 14. the enlire coirace since the establishment of ibe Mint, $520,000,000 have been coined frotn bullion derivad frora mines of the United States. . ♦ Of the gold deposited during the last year $34,21 0,889 52, and of tbe silver $'610,01 1 20, ere frotn the mines of the United Statos; the remaindor formed part of the unnsnally large receipts during the year fiom foreign couulries. THE COIN IN TUK UNITED STATES. No mcans cxist of ascertaining, with absolute ceitainty tlieqnantityof coin r.ow in the United States; but the best accesBible data lead the Secretarv to concur in the judgment of tha Director of the Mint, thai the amontit is between two bundred and seventy-five millions and throe hundred millions of dollars. The reports fiom the several bureaus will show how much has been aecomplihed duting tho year, and how well. - Tlis Secretary indulges the hope that contimied endeavor, with larger experienee, will raake the department, in all its woikingf, wliat a deparlmcnt cbarged with dutips and responsibüities so various and important ouglit to be. S. P. CHASE.

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