The New era. [volume] ([Portsmouth, Va.]) 1845-1847, 1846-06-20
TREASURY DEPARTMENT,
Juno Is. 1916. G


with the estimates of the Secretary of tho Navy,
of the 9Th instant. and Of the Secretary Of War of
The 18th instant, submitted by you TO this de.
partment, and respectfully report to Won as fol.
lows:
1t appears that the aggregate estimated expen
ditures of the War and Navy Departments for
the fiscal years terminating ON the 3Oth of June,
1916. and the 3Oth of June. IS47, amount to
S23,952.9O4, over and above the estimates made
by these departments in December last, and then
submitted in nv annual report 10 Congress. In
that report 1t was supposed by this department.
that upon the expenditures then estimated for
state of peace. there would remain on the LIST of
July, lS41. balance in the treasury of 81 1892,
AL W. Deducting this balance from the excess
ct expenditures above estimated by the War and
Navy departments, there would result deficen-
cy of Sl962O,46
1t is believed, however, that this deficiency
will, from augmented receipts accrued and ac-
cruing for the fiscal years 1916, and lS47, be d.
minished four millions of dollars. which would
reduce the deficit on the LIST of July, ls47, to
S15,620, 463.
1t is ascertained by experience, that for the GER
tam, prompt, and convenient payment Of the pub
lie creditors, at all times and places throughout
our extended territory. and the supply of the
mint and branch minis for coinage, sum of four
millions OF dollars, especially during a state of
war, must remain on hand in the treasury, which
would again raise the sum to be provided for be.
fore the 3Oth of June, ls47, to Sl9,62O,463.
1t is believed, however, that q sum equal to
s5,5o4,O51 of additional revenue may be produced
by the modification ofthe tariff herein proposed
namely, to adopt, as basis, the bill reducing the
tariff reported by the Committee of WAYS and
Means to the House of Representatives on the
18th of April last. together with the augmented
and additional duties now proposed and enumerat-
ed in schedule A. This change of the bill re-
ported by the committee, emitting the fourth sec.
ton, would make an addition to the revenue to
be produced by that bill, of Sd, 034, 057.
After very careful examination of the addi-
tlona data which it has been in my power to OBJ.
tain since the month of February last, it is nv
conviction that the bill of the committee will pro-
duce net revenue of at least twenty six millions
of dollars. If TO this be added the additional du-
ties proposed to be levied in schedule A. the bill of
the committee, with the notifications embraced in
that schedule, would produce a net revenue of
S3O.O34.O57. This would make an addition of
1884 ,O57 to the revenue that would be produced
under the act of Both of August, 1912 If, then.
we deduct this 1854 ,054 from the deficit above
estimated, it would still leave deficit of sl4,-
066 .4O6.
If, in addition to the notifications of the tariff
above suggested, the warehousing system were
adopted as recommended in my annual report of
December last, 1t would make an addition TO the
annual revenue from customs of one million of
dollars, which, deducted from the above deficit,
would leave deficiency still remaining of 3d.
086, 406
Ii is true that the introduction of the warehous-
ing system might diminish the revenue during a
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 qradua-
ton of the price of the public lands in avor of SET
tiers and cultivators, as recommended in your
message of December last. would make an annual
addition of half million of dollars TO the revenue
derivable from the proceeds of the sales of the
public lands, by bringing into .,arket many mil
lions of acres of public domain which are wholly
unsuitable at the present minimum price estab-
lished by law. Deducting this sum of half mil
lion of dollars from the deficit last above mentioned
would leave still unprovidsd for the sum of Sl2.-
$50 400. which must be met by loans, treasury
notes, direct taxation, or excuses.
In addition to the strong objections which have
been urged against direct taxes and excuses, it
would be difficult to put in operation such sys-
tenn in all the States and Territories, so as to
realize the required amount in cash, before the
Both of June, 1847. A system of direct taxes
ana excuses, IL Is DelleVe0, would not meet the
sanction of the people, unless in the emergency
of war with some great maritime nation, expo
sing our commerce 10 great hazard, and greatly
reducing the revenue from duties or imports
The only remaining means for supplying this
deficit within the required period, is by loans or
treasury notes and would accordingly recon-
mend with view to the most vigorous prosecu-
ting Of the existing war with Mexico, so as to
bring it to a speedy and honorable termination,
that contingent authority should be vested in
this department, with your sanction, to issue trea-
sury notes, or effect loan of sum in the aggre-
gate not exceeding the last above mentioned deficit
of Sl2, 586, 406.
| think it would be most advantageous to the
government, that portion of this money should
be raised by treasury notes, and the remainder by
loans, limiting the interest in both cases to rate
not exceeding six per cent. per annum, and for
bidding the negotiation in either case below the
par value. If the authority were limited so as to
cover this deficit, and the power given to resort TO
loans or treasury notes, or both, as the emergsn-
cy might require, the money might be raised at a
much lower rate of interest than if the department
were confined either to loans alone or to treasury
notes. The experience Of the government has
demonstrated that there are periods when loans
are most available, and that there are occasions
when treasury notes are much better adapted to
meet the emergency; and the power TO select
both, or either, from time to time, would render
the negotiation more certain, and probably save