The Sun.
London, England, 1860-01-10 00:00:00

by a sense of corporate and individual interest. I venture
to assert that the additional cost of transporting troops,
munitions of war, and necessary supplies for the army
across the vast intervening plains to our possessions on the
Pacific coast would be greater in such a war than the whole
amount required to constrnct the road. And yet this re-
sort would, after all, be inadequate for their defence and
protection.
We have yet scarcely recovered from the habits of ex-
travagant expenditure, produced by our overflowing Trea-
sury, during several years prior to the commencement of
my Administration. The financial reverses which we have
since experienced ought to teach us all to scrutinise our ex-
penditures with the greatest vigilance, and to reduce them
to the lowest possible point. The Executive Departments
of the Government have dev'ted themselves to the accom-
plishment of this object with considerable success, as will
appear from their different reports and estimates. To these
I invite the scrutiny of Congress, for the purpose of re-
ducing them still lower, if this be practicable, consistent
with the great public interests of the country. In aid of
the policy of retrenchment I pledge myself to examine
closely the bills appropriating lands or money, so that if
any of these should inadvertently pass both Houses, as
must sometimes be the case, I may afford them an oppor-
tunity for reconsideration. At the same time we ought
never to forget that true public economy consists, not in
withholding the means necessary to accomplish important
national objects confided to us by the Constitution, but in
taking care that the money appropriated fur these purposes
shall be faithfully and frugally expended.
It will appear from the report of the Secretary of the
Treasury that it is extremely doubtful, to say the least,
whether we shall be able to pass through the present and
the next fiscal year without providing additional revenue.
This can only be accomplished by strictly confining the ap-
propriations within the estimates of 'the different depart-
ments without making an allowance for any additional ex-
penditures which Congress may think proper in their dis-
cretion to authorise, and without providing for the redemp-
tion of any portion of the 20,000,000 dols. of Treasury notes
whichhave been already issued. In the event of a deficiency,
which 1 consider probable, this ought never to be supplied
by a resort to additional loans. It would be a ruinous prac-
tice in the day of peace and prosperity to go on increasing
the national debt to meet the ordinary expenses of the go-
vernment. This policy would cripple our resources and
impair our credit in case the existence of war should render
it necessary to borrow money. Should such a deficiency
occur as I apprehend, I would recommend the necessary
revenue to be raised by an increase of our present duties on
import,.. Laced not repeat the opinions expressed in my
last annual message as to the best mode and manner of ac-
complishing this object, and shall now merely observe that
these have since undergone no change.
The report of the Secretary of the Treasury will explain
in detail the operations of that department of the govern-
ment.

The receipts into the Treasury from all sources during
the fiscal year ending 30th June, 1859, including the loan
authorised by the act of 14th June, 1858, and the issues of
Treasury notes authorised by existing laws, were eighty- one
million six hundred and ninety-two thousand four hundred
and seventy-odd dollars and one cent (81,692,471 dole. lc.),
which sum, with the balance of six millions three hundred
and ninety-eight thousand three hundred and sixteen dol-
lars and ten cents (6,398,366 dols. 10c.) remaining in the
Treasury at the commencement of that fiscal year, made an
aggregate for the service of the year of eighty-eight million
ninety thousand seven hundred and eighty-seven dollars
and eleven cents (88,090,717 dole. 11c.)
The public expenditure during the fiscal year ending
30th of June, 1859, amounted to eighty-three million
seven hundred and fifty -one thousand five hundred and
eleven dollars and fifty-seven cents (83,751,511 dole. 57c.)
Of this sum seventeen million fcur hundred and five thou-
sand two hundred and eighty- five dollars and forty-four
cents. (17,405,285 dole. 44c.) were applied to the payment
of interest on the public debt and the redemption of the
issues of treasury notes. The expenditures for all the other
branches of the public service during that fiscal year were
therefore sixty-six million three hundred and forty-six thou-
sand two hundred and twenty-six dollars and thirteen cents
(66,346,226 dols. 13c.)
The balance remaining in the treasury on the Ist July,
1859, being the commencement of the present fiscal year,
was four million three hundred and thirty-nine thousand
two hundred and seventy-five dollars and fifty-four cents.
(4,339,275 dole. 54c.)
The receipts into the treasury during the first quarter of
the present fiscal year, commencing July 1, 1859, were
twenty million six hundred and eighteen thousand eight
hundred and sixty-five dollars and eighty-five cents
(20,618,865 dole. 85c.) Of this amount three million
eight hundred and twenty-one thousand three
hundred dollars (3,821,300 dollars) was received on
account of the loan and issue of treasury notes
—the amount of sixteen million seven hundred and
ninety-seven thousand five hundred and sixty -five dollars
and eighty-five cents. (16,797,565 85c.) having heed re-
ceived during the quarter from the ordinary sources of pub-
lic revenue. The estimated receipts for the remaining three
quarters of the present fiscal year to 30th June, 1860, are
fifty million four hundred and twenty-six thousand four
hundred dollars (50,426,400 dole.) Of this amount it is
estimated that five million seven hundred and fifty-six
thousand four hundred dollars (5,756,409 dols.) will be re-
ceived for treasury notes which may be reissued under the
fifth section of the act of 3d March last, and one million one
hundred and seventy thousand dollars (1,170,000 dole.) on
account of the loan authorised by the act of June 14, 185 S
—making six million nine hundred and twenty-six thou-
rand four hundred dollars (6,926,400) from these extraor-
dinary sources, and forty-three million five hundred thou-
sand dollars (43,500,000 dols.) from the ordinary sources of
the public revenue—making an aggregate, with the balance
in the treasury on the let July, 1859, of seventy-five mil-
lion three hundred and eighty-four thousand five hundred
and forty-one dollars and eighty-nine cents. (75,384,541 dole.
89c.) for the estimated means of the present fiscal year,
ending 30th June, 1860.
The expenditures during the first quarter of the
present fiscal year were twenty millions seven thou-
sand one hundred and seventy-four dollars aad
seventy-six cents. (20,007,174 dols. 76c.) Four million
six hundred and sixty-four thousand three hundred and
sixty-six dollars and seventy-six cents. (4,664,366 dole. 76c.)
of this sum were applied to the payment of interest
on the public debt and the redemption of the issues of
Treasury notes, and the remainder, being; fifteen million
three hundred and forty-two thousand eight hundred and
eight dollars (15,312,808 dole.) were applied to ordinary ex-
penses during the quarter. The estimated expenditures
during the remaining three quarters, to June 30, 1860, are
forty million nine-hundred and ninty-five thousand five
hundred and fifty-eight dollars and twenty-three cents
(40,995,558 dole. 23e.) Of which sum two million eight
hundred and eighty-six thousand six hundred and twenty-
one dollars and twenty-four cents. (2,886,621 dole. 24c.)
are estimated for the interest of the public debt. The as-
certained and estimated expenditures for the fiscal year
ending 30th of June, 1860, on account of the public debt,
are, aecordingly, seven million, five hundred and fifty
thousand, nine hundred and eighty-eight dollars and ten
cents (7,550,988 dole. 10c.) ; and for the ordinary expen-
ditures of the Government fifty-three million four hun-
dred and fifty-one thousand, seven hundred and forty-four
dollars and eighty-nine cents (53,451,741 dole. 89c.)
making an aggregate of sixty-one million, two thousaad
seven hundred and thirty-two dollars and ninety-nine cents
(61,002,732 dolts. 99c.) ; leaving an estimated balance in the
treasury on the 30th June, 1860, of fourteen million three
hundred and eighty-one thousand eight hundred and eight
dollars and forty cents (14,381,308 dole. 40c.)
The estimated receipts during the next fiscal year
ending 30th June, 1861, are sixty-six million two
hundred and twenty-five thousand dollars (66,225,000 dole.)
which, with the balance, estimated, as before stated, as re
maining in the Treasurp on the 30th June, 1860, will make
an aggregate for the service of the next fiscal year of eighty
million six hundred and six thousand eight hundred and
eight dollars and forty cents (80,606,808 dols. 40c.)
The estimated expenditure during the next fiscal year
ending 30th June, 1861, are sixty-six million seven hund-
red and fourteen thousand nine hundred and twenty-eight
dellari and seventy-nine cents (66,714,128 dole. 79c.) Of
this amount three million three hundred and eighty-six
thousand six hundred and twenty-one dollars and thirty-
four cents (3,386,621 dole 34c.) will be required to pay the
interest on the public debt, leaving the sum of sixty-three
million three hundred and twenty-eight thousand three
hundred and seven dollars and forty-five cents (63,328,307
dole. 45c.) for the estimated ordinary expenditures during
the fiscal year ending 30th June, 1861. Upon these esti-
mates a balance will be left in the Treasury on the 30th
June, 1861, of thirteen millions eight hundred and ninety-
one thousand eight hundred and seventy-nine dollars and
sixty-one cents (13,891,879 dole. 61c.)
But this balance, as well as that estimated to remain in
the Treasury oa the Ist July, 1860, will be reduced by such
appropriations as shall be made by law to carry into effect
certain Indian treaties during the present fiscal year, asked
by the Secretary of the Interior, to the amount of five
hundred and thirty-nine thousand three hundred and fifty
dollars (539,350 dohs.), and upon the estimates of the Post-
master-General for the service of his department fur the last
fiscal year, ending 30th Jund, 1859, amounting to four mil-
lions two hundred and ninety-six thousand and nine dol-
lars (4,296,009 dole.), together with the further estimate of
that officer for the service of the present fiscal year, ending
30th June, 1860, being five million five hundred and
twenty-six thousand three hundred and tsienty-four dol-
lars (6.526,324 dols.), making an aggregate of ten million
three hundred and sixty-oue thousand six hundred and
eighty-three dollars (10,361,683 dole.)
Shoild these appropriations be made as requeosntedthbeoththe
37 3
proper departments, the balance in the treasury .
June, 1861, will not, it is estimated, exceed three millions
five hundred and thirty thousand one hundred and ninety-
six dollars and sixty-one cents (3,530,196 dole. 61c.)
transmit herewith the report of the Secretaries of War,
of the Navy, of the Interior, and of the Postmaster-Gene-
ral. They each contain valuable information and impor-
tant recommendations well worthy of the serious considera-
tion of the Congress.
It will appear from the report of the Secretary of War
that the army expenditures have been materially reduced
by a system of rigid economy, which, in his opinion,
offers every guarantee that the reduction will be
permanent. The estimates of this Department for
the next year have been reduced nearly two millions
of dollars below the estimates for the present fiscal
year, and half a million of dollars below the amount granted
for this year at the last session of Congress.
The expenditures of the Post-Office Department during
the past fiscal year, ending on the 30th June, 1859, ex-
clusive of payments for mail service specially pro-
vided for by Congress out of the general treasury,
amounted to 14,965,493 dole. 33c., and its receipts to
7,968,474 dole. 7c. ' • showing a deficiency to be supplied from
the treasury of 6,996,009 dole. 26c., against 5,235,677 dole.
10c. for the year ending 30th June, 1858. The increased
cost of transportation growing out of the expansion of the
service required by Congress explains this rapid augmenta-
tion of the expenditure. It is gratifying, however, to
observe an increase of receipts for the year ending on the
30th June, 1859, equal to 481,691 dole. 21c., compared with
those in the year ending on 30th June, 1858.
It is estimated that the deficiency for the current fiscal
year will be ,5,988,424 dols. 4c., but that for the year ending
30th June, 1861, it will not exceed 1,312,473 dole. 90c.,
should Congress adopt the measures of reform proposed and
urged by the Postmaster-General. Since the month of March
retrenchments have been made in the expenditures amoutt-
ing to 1,826,471 dols. annually, which did not take effect until
after the commencement of the present fiscal year.
The period seems to have arrived for determining the question
' whether this Department shall become apermanent and ever-
increasing charge upon the Treasury, or shall be permitted to
resume the self-sustaining policy which had so long con-
trolled its administration. The course of legislation recom-
mended by the Postmaster General for the relief of the De-
partment from its present embarrassment, and for restoring it
to its original independence, is deserving of our early and
earnest consideration.
In conclusion, I would again commend to the just
liberality of Congress the local interests of the District of
Columbia. Surely the city bearing the name of Washing-
ton, and destined, I trust, for ages to be the capital of our
united, free, and prosperous confederacy, has strong claims
on our favoumble regard.

JAMES BUCHANAN
Washington' City, December 19, 18p.