The Sun.
London, England, 1864-12-26 00:00:00

YEAR.

Any estimate which may be made of the probable re.
ceipts and expenditures for the next fiscal year must neces-
sarily be liable to still grekter uncertainty. This remark
applies more particularly to expenditures, for while, if exist-
ing laws remain unchanged, the amount of revenue may be
calculated with reasonable certainty, it is impossible to anti-
cipate what the exigencies of war may require. On the one
hand this may call for increased effort, and on the other
it may be confidently hoped that the great struggle is near

its termination, and that consequently the es7imate now
submitted will prove far beyond the wants of the year.
While any doubt remains, however, it would be unsafe to
assume any other basis of calculation than one predicated
upon the existing state of affairs. The receipts for the year
ending June 30, 1366, are estimated as follows

Dollars,
70,000,000
300,C 00,f 00
••. l,( 00,0 C 0
25,0,0,600

From customs
Internal duti ,s
Lands .
Miscellaneous sources

Agg,,T gate . 396,000,r 00
The expenditures are est mated as follows:
Balance of unexpended appropriations 350,000,000
For the civil service
Pensions and Indians
The War Department
Nary Department
Interest on public debt

Aggregate
Fut from this aggregate there m iy be de:.ucted
a, likely to rt main unexpended at the close
of the year

F50,000,00C

Total 818,256,005
Deduct estimated receipts from ordinary sources,396 000,000
dols, there will remain to be provided for by loans 422,256,005
dols. To this should be added for the redemption of excess of
certificates of indebtedness 47,365,000 dole, making the
whole amount to be provided for by loans 469,621.005 dots.
A,sumint, the correctness of these estimates, the whole debt
on the Ist day of July, 1863, would bo found by adding the
foregoing amount of 422,255,005 dols to the estimated debt
on July ;, 1865, 2,223,664,067 dols, giving 2,345,320,682
dols as the amount of the debt at the close of the next fiscal
year. The calculation is made on the same basis of receipts
as that assumed f,r the current year. It is quite probable,
in the judgment of the Commissioner of lutes's tl Revenue,
that 3,00;',090 dole may be received in another year from
that source, without the additional legislation suggested 133
him, Should this supposition be veriffid, and she ue a taxes
proposed for this year be laid and continued, an additional
fifty millions might be expected from internal revenue. The
secretary has, however, thought it wiser to name 300,000,000
as all that would probably be realised. It will be observed
that the actual receipts from ordinary sources for the last
fiscal year varied materially from the estimates, particularly
from customs and internal revenue. This variation is im-
putable, in great part, to the legisla, ion of Congress at its last
session, increasing largely the rates of duty on foreign and
domestic articles. It is apprehended, that similar results will
not follow for the residue of the present year in both
these particulars. The increase of duties on imports under
the act of June 30, 1864, has already had the effect to de-
crease importations to a considerable extent, and the same
effect will be likely to continue. So that estimating the re-
ceipts of the three remaining quarters by those of the first
in the light of former experience, it will not be safe to cal-
culate upon revenue from customs much exceeding
70,000,000 dols for the current year. In •the judgment of
the secretary, this disadvantage, in a financial point of
view, is more than counterbalanced by the stimulus
afforded to domestic industry and the consequent increased
revenue from that source. From internal revenue a diffe-
rent and far more favourable result may be anticipated. It
will be noticed that instead of 77,599,703 dole 59c there was
received from this source in the past year 108,260,320 dots
57c under the same law which in ten months of the pre-
ceding year yielded only 37,640,787 95e, The new law,
which went into operation on July 1 last, largely increased
these duties, although it will probably fail to produce the
amount of revenue hoped for, may, if not materially
changed, together with the special income tax imposed by
the joint resolution of July 2, 1864, be safely estimated to
produce the sum of 25,000,000 dols, should the business of
the country be ordinarily prosperous, The same causes
which, under preceding laws, produced so large an increase
in the second year, would be likely to have a similar effect,
to some extent, under the now law ; so that at least the
amount of 25,000,000 dols may be expected from it in ano-
ther year without the aid of a special income tax. But this
amount is not, and ought not to be, satisfactory. Three
hunt red millions at least should be realised from internal
duties. It is for Congress to,select the sources and devise
the modes in which this most desirable result can be ob-
tained, and the report of the Commissioner of internal Re-
venue is referred to for his views on this important point, as
well as for many valuable suggestions having reference to
the samo general subject.
DEFICIENCY TO LE PROVIDED roll•

From preceding statements it appears that,-exclusive of
the receipts from ordinary sources, the amounts following
aro to be provided, viz. :—For the fiscal year ending June
30, 1865, 570,727,608 dols Ile; for the fiscal year ending
June 30, 1866, 469,621,005 dols l7c—total, 1,040,345,513
dots 28e. Deduct amount now authorised and balance in
the Treasury, July 1, 1864, 560,063,188 dole 20, it leaves
a balance to bs provided for by additional legislation of
480,285,325 dole 26c. It will be observed that this ba-
lance is predicated upon contingencies which may not
occur, and calculations which may prove deceptive.
It would be unsafe, therefore, to limit so closely the pro-
visions to be made by Congress for meeting the expendi-
ture of this and the succeeding years. To raise a large por-
tion of the amount neceasary to meet these authorised ex-
penditures, it is obvious that recourse was to be had to
loans, which have been already in part negociated. The
necessities of former years have led to many expedients, as
it is apparent from the diversity of forms which our securi-
ties present. As the debt increases from year to year, bor-
rowing becomes more difficult. Embarrassed as the country
is with two systems of bauking, and obstructed as the
Government is by a currency wholly beyond its control,
it is manifest that to push its owh circulation far, if it all
beyond its present limit, could only be juslfied by absolute
necessity. To thrust our securities upon the market in
such amounts as it is not able to bear and to retain no check
upon stock jobbing combinations, must exercise a disastrous
effect upon the public credit, and operate injuriously upon
large numbers who have heretofore invested their means
liberally and confidingly in Government issues. The
Secretaty is not unmindful that in the opinion of many per-
sons conversant with financial matters a recourse should be
had to foreign matkets, and in two acts of Congress, one of
which is still in force, authority has been given to negotiate
a foreign loan. This, if practicable at all, on terms which
the Secretary could feel justified in acceptitv, would in his
opinion, at the present time, and under existing laws, be
so inconsiderable in amount that its effects would be
merely temporary, and would afford an alleviation rather
than a relief. Our bonds have already, to a considerable
amount, been sought for abroad and to that extent the
home market has been relieved and strengthened. Com
munication with Europe is now so easy and regular, in-
telligence is transmitted so rapidly, businesss facilities are
so abundant, that foreign markets ere altiaost at our own