The Sun.
London, England, 1865-12-23 00:00:00

NATIONAL BANKS.

On the 30th of September last the deposits of the na-
tional banks alone amounted to $544,150,194 ; their loans
—estimating their national securities as a loan to the Go-
vernment—to $913,045,629 ; both of which items must
have been increased during the month of October ; while
on the 31st of that month the circulation, bank and na-
tional, had reached the startling amount of upwards of
$700,000,000. Nothing beyond this statement is required
to exhibit the present inflation or to explain the causes of
the current and advancing prices. If disasters followed
the expansions of 1837 and 1857, what must be the conse-
quences of the present expansion unless speedily checked
and reduced ?
It is undoubtedly true that trade is carried on much more
largely for cash than was ever the case previous to 1861
and that there is a much greater proper demand for money
than there would be if sales were made, as heretofore, on
credit. It is also true that there is a larger demand than
formerly for money on the part of manufacturers for the
payment of operatives. But, making the most liberal
allowances for the increased wholesale demand arising
from these causes and from the advance of the country in
business and population, it is apparent from the foregoing
statements, if the advance in prices did not establish the
fact, that the circulating medium of the country is alto-
gether excessive.

RECOMMENDATIONS TO CONGRESS.
The Secretary, therefore, respectfully but earnestly re-
commends :
First. That Congress declare that the compound interest
notes shall cease to be a legal tender from the day of their

maturity.
Second. That the Secretary be authorised, in his discre-
tion, to sell bonds of tho United States, bearing interest at a
rate not exceeding six per cent., and redeemable and pay-
able at such periods as may be conducive to the interests
of the Government, for the purpose of retiring not only
compound-interest notes, but the United States notes.

THE PUBLIC DEBT.
At the close of a great war, which has been waged on
both sides with a vigour and energy, and with an expendi-
ture of money without a precedent in modern times, the
people of the United States are encumbered with a debt
which requires the immediate and careful consideration of

their representatives.
Since the commencement of the special session of 186.,
the most important subject which has demanded and re-
ceived the attention of Congress has been that of providing
the means to prosecute the war ; and the success of the
Government in raising the money is evidence of the wis-
dom of the measures devised for this purpose, as well as of
the loyalty of the people and the resources of the country.
No nation within the same period borrowed so largely, or
with so much facility. It is now to be demonstrated that
a republican government can not only carry on a war on
the most gigantic scale, and create a debt of immense mag-
nitude, but can place this debt on a satisfactory basis, and
meet every engagement with fidelity. The same wisdom
which has been exhibited by the National Councils in pro-
viding the means for preserving the national unity will
not be wanting in devising measures for establishing the
national credit.
As all true men desire to leave to their heirs unen-
cumbered estates, so should it be the ambition of the people
of the United States to relieve their descendants of this
national mortgage. We need not be anxious that future
generations shall share the burden with us. Wars are
not at an end, and posterity will have enough to do to
take care of the debts of their own creation.
Various plans have been suggested for the payment of
the debt, but the Secretary sees no way of accomplishing it
but by an increase of the national income beyond the na-
tional expenditures. In a matter of so grave importance
as this experiments are out of place. The plain beaten
path of experience is the only safe one to tread.
The first step to be taken is to institute measures for
funding the obligations that are soon to mature. The
next is to provide for raising, in a manner the least odious
and oppressive to tax-payers, the revenues necessary to
pay the interest on the debt, and a certain definite amount
annually for the reduction of the principal. The Secre-
tary respectfully suggests that on this subject the expres-
sion. of Congress should be decided and emphatic. It is
of the greatest importance, in the management of a matter
of so surpassing interest, that the right start should ba
made. Nothing but revenue will sustain the national
credit, and nothing less than a fixed policy for the reduc-
tion of the public debt will be likely to prevent its in-

crease.
On the 31st day of October, 1865, since which time no
material change has taken place, the public debt, with-
out deducting funds in the treasury, amounting to
$2,808,549,437.55.
RECEIPTS AND EXPENDITURES.

The Secretary estimates that the receipts for the remain-
ing three quarters of the year ending June 30, 1866, will
be as follows :
Balance in Treasury October 1, 1865
Receipts from Customs $100,000,000
Receipts from Land 500,000
Receipts from Internal Re-
venue

175,000,000

Receipts from Miscellaneous
Sources
---305,500,000 00

$372,658,515 44

The expenditures, according to the estimates, will be
For the civil service $32,994,602 38
For pensions and Indians 12,256,760 94
For the War Department 307,788,750 57
For the Navy Department 35,000,000 00
For interest on public debt 96,813,868 75

484,853,462 64

Deficiency $112,194,947 20

The receipts for the year ending June 30, 1867, are esti-
mated as follows :
$100,000,000 00
From customs
From internal revenue 275,000,000 00
From lands 1,000,000 00
From miscellaneous

sources
$396,000,000 00

The expenditures, according to the estimates, will be :
For the civil service 542,165,599 47
For pensions and Indians 17,609,640 23
For the War Department 39,017,416 18
For the Navy Department 43,982,457 50
For interest on public debt 141,542,068 50
-- $284,317,181 88

Leaving a surplus of estimated receipts
over estimated expenditures of 1111,682,818 12
DEBT OF THE UNITED STATES.

The debt of the United States was increased during the
fiscal year ending June 30, 1865,
during the first quarter of the $941
present9o2's37.o4 and
fiscal
year,
$138,773,097.22. The Secretary has, however' the satis-
faction of being able to state that during the months of
September and October the public debt was diminished to
the amount of about thirteen millions of dollars.
If the expenditures for the remaining three-quarters of
the present fiscal year shall equal the estimates, there
will be a deficiency, to be provided for by loans, of
$112,194,947.20, to which must be added $32,53,
901 for
the five per cent. Treasury notes (part of the public debt),
which become due the present month, and are now being
paid out of moneys in the Treasury, and all other payments
which may be made on the public debt.
The statement of the probable receipts and expenditures
for the next fiscal year is, in the highest degree, satisfac-
tory. According to estimates which are believed to be
reliable the receipts of that year will be sufficient to pay
all current expenses of the Government, the interest on