The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-06-16
WAsHINGroN, June l6, 1876.
TREASURY DEPARTMENT,

Sir: have duly considered the resolution of the
Senate of the Sd Of June, 1886, together with the
estimates of the Secretary of the Navy, Of the 9Th
instant, and of the Secretary Of War Of the 18th
instant, submitted by you to this department, and
respectfully report to you as follows:
1t appears that the aggregate estimated expendi-
lures of the War and Navy Departments for the
fiscal years terminating on the 36th Of June, 1896
and the Both Of June, lS47, amount to 500 952 9O4
over and above the estimates made by these depart
ments in December last, and then submitted in my
annual report to Congress. In that report it was
supposed by this department, that upon the expen-
ditures then estimated for a state Of peace, there
would remain on the LIST Of July, lS47, balance in
the treasury of 1882, AL OF. Deductng this bal
ance from the excess of expenditures above esti-
mated by the War and Navy Departments, there
would result deficiency Of Sl9,620, 463.
1t is believed, however, that this deficiency will,
from augmented receipts accrued and accruing for
the fiscal years 1916 and ls47, be diminished four
millions of dollars, which would reduce the deficit
on the LIST of July, ls47, to l5,620463,
1t is ascertained by experience, that for the
tain, prompt, and convenient payment of the public
creditors, at all times and places throughout
extended territory, and the supply Of the mint and
branch minis for coinage, sum of four millions of
dollars, especially during state of wcr, must
main on hand in the treasury, which would again
raise the to be provided for before the Goth of
june lS47, to Sl9, $40, 1853
1t is believed, however, that equal to
1854, 057 Of additional revenue may be produced
by the modification of the tariff herein proposed
namely, to adopt, basis the bill reducing the
tariff reported by the Committee of Ways and
Means to the House of Representatives on the l4th
Of April last, together with the augmented and addi
tional duties proposed and enumerated in sched-
uIe A. This change of the bill reported by the COM
mttee, emitting the fourth section, would make an
addition to the to be produced by that bill,
of 81 ,034 057.
After a very careful examination of the additional
data which it has been in my power to obtain since
the month of F bruary last it is my conviction that
the bill of the committee will produce net
of at least twenty-six millions of dollars Ito this
be added the additional duties proposed to be levied
in schedule A, the bill of the committee, with the
notifications embraced in that schedule, would pro-
duce a net revenue of $50, 1904, 057. This would
make an addition Of IS ,534 057 to the that
would be produced under the act of the Goth of Au
gust 1S42. IT, then, we deduct this 1854 ,057 from
the deficit above estimated, it would still leave de-
fcit of Sl4,096,4 06.
IT. in addition to the notifications of the tariff
above suggested, the warehousing system
adopted, recommended in my annual report of
December last, it would make an addition to the an
nua from customs Of one million Of dollars
which, deducted from the above deficit, would leave
a deficiency still remaining of Sl3,0S6, 406.
1t is true that the introduction of the warehousing
system might diminish the revenue during portion
of the first year succeeding its adoption; but that it
would add one million of dollars per annum to the
permanent annual revenue from customs is not
doubted.
1t is believed also that the reduction and gradua
ton of the price of the public lands in favor of set
tiers and cultivators, recommended in your mes
sage of December last, would make annual ad-
dition of half million Of dollars to the revenue de-
rvable from the proceeds of the sales of the public
lands, by bringing into market many millions of
acres ofthe public domain which are wholly unsafe
able at the present minimum price established by
law Deductng this sum Of half million of dol
lars from the deficit last above mentioned, would
leave still unprovded for the Of Sl2 $50, 406,
which must be met by loans treasury notes, direct
taxation, or excuses.
In addition to the strong objections which have
been urged against direct and excuses, it would
be difficult to put in operation such system in
all the States and Territories, as to realize the re-
quired amount in cash, before the Both of June,
iS47 A system of direct taxes and excuses, it is
believed would not meet the sanction Of the people,
unless in the emergency Of a war with some great
maritime nation, exposing our commerce TO great
hazard, and greatly reducing the revenue from du
ties on imports.
The only remaining means for supplying this
deficit within the required period, is by loans or
treasury notes; and would accordingly recommend,
with view to the most vigorous prosecuting OF the
existing war with Mexico, so as to bring It to
speedy and honorable termination, that contingent
authority should be vested in this department, with
your sanction, TO issue treasury notes, or effect
loan off sum in the aggregate not exceeding the
last aforementioned deficit Of 1856, AUG,
| think il would be most advantageous In the
government, that portion Of this money should be