Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1863-12-14

able 10 say in general that the operations of the
department have been attended. during the last
fiscal year, by greater measure of success than
be ventured to anticipate in the beginning. Not.
w.thstanding the aid afforded BY the additional
issue Of United States notes under the joint reso
luton Of January, the Secretary had found it
impossible to prevent the gradual increase, dur
ing the session of Congress, in amount of unpaid
acquisitions Those who were unsatis6ed at the
beginning of the session were indeed discharged,
and large sums were applied TO new demands for
current disbursements remaining necessarily
paid increased steadily, notwithstanding all ef-
forts tn prevent It, until it reached at the close
of the session. the sum Of FAIL .l69. The
loan act, and the national banking act, were fol
lowed by an immediate revival of public credit.
Success quite beyond anticipation crowned the
efforts of the Secretary TO distribute the $40
loan in all parts of the country, well every
other measure adopted by him for replenishiDg
the treasury. The result was, that within two
months after the adjournment of Congress, the
whole mass of suspended acquisitions had been
paid. all demands promptly met. and full provis-,
ion made for the pay of the army and navy
During the remainder of the fiscal year no en-
barrassment attended the administration of the
finances except those which inseparable from
vast expenditures. Notwithstanding these ex-
penditures it is gratifying to be able to state that
during the last year the total disbursements did
not greatly exceed. while the increase of the
public debt did not equal, the estimates submit
ted to Congress by the Secretary at its last ses-
sion. -t
Thus. while it was then estimated that the pub
lie debt. on the 3Oth of June, 1863, would reach
the sum of 81 ,l22 297 .403. its actual amount on
that day was 81 .0yS. 7g3 ,1Sl. and while the dis
bursements for the year were estimated at $685.
46.32l. the real total was $7l4.709, 1896; while
the receipts from other ordinary sources of reve-
nue. thus clearly correspond with the estimates.
and largely exceed them.
The receipts from the internal revenue have
alone disappointed expectation. Experience has
demonstrated its error. The estimate was $685.
456 1903. while the actual receipts S37 $40.
769. a part of the deficiency may be attributed
to the changes made in it by Congress after the
estimate was made; bur it is not probable, as
neither cause operated to reduce the receipts, that
the revenue from this source would have exceed
ed half the estimated amount. 1t is clear that
the law, unless materially amended, will not pro
duce the revenue expected from it.
The following is the Secretary's estimate of
receipts and expenditures for the next year:
Estimated balance June lsr, 1864 SS5, $780,
500; from customs, so 900 900; from internal
revenue, Sl25. 900 600; from lands, 81 900 900:
from miscellaneous sources, 5000, 600, making
the estimated aggregate receipts SCOT, S33 .539.
He estimates the real expenditures for the year at
from ordinary sources, as before stated, and il
leaves to be provided by loan 1914 .91S. $40. The
sum 10 be provided represents the increase of debt
during the year. He assumes. therefore the cor
rectness of the estimate which put the debt, b.
July lst. 1864 at ST. $50 1886. Gal. 1t will result
from these estimates that the whole debt will
have reached. on the 30th of June. 1865. the sum
of 81, 23l 1886, 100.
The Commissioners of Internal Revenue rec
m an AZ fha IN han k acir-
culation to two and two ffths per cent; in
crease on the duty of distilled spirits to sixty
cents per gallon: on tobacco to twenty cents per
pound on leaf. and from FIVE to ten cents (ac
cording to quality,) on manufactured; ten cents
per gallon on crude petroleum.
The enactment of such laws will secure an in
crease of the internal revenue the amount
originally estimated-of $50, 0O0, 000a year. re-
quired by the strongest considerations of public
policy.
Hitherto the expenses of the war have been
betrayed by loans, to an extent which nothing
but the expectation of its speedy termination
could fully warrant.
1t will not escape observation that the average
rate of interest is now increasing and il is obvi
Gus that it must continue to increase with the in.
crease of the proportion of the interest bearing tc
the non-nterest bearing debt; and as the amount
of the latter. consisting of United States notes
and fractional currency. can't be materially aug
mented without evil consequences of the mos
serious character, the rate of interest must in
crease with the debt and approach continually the
highest average, that must be greater or less il
proportion to the duration and cost OF the war.
In former report, the Secretary placed the
limit to which the loan in the form of certificates
ofindebtedness could be carried, at 500 900 900
Experience has shown it can be carried TO $3.50,
900, and that its natural limit is about that sum
On first due, the amount of these certificates wa:
Sl45, 100. 900 Ii would be unsafe therefore t.
rely any substantial increase of loan in tha
form.
The amount prescribed by law to the issue o.
United States notes has been reached, and tbs
Secretary thinks il clearly inexpedient TO increase
the amount. Sufficient circulation having beer
already provided. the government must now Dor
row, like any other employer of capital tempo
rary requiring more than the income will sup
ply, and rely for the credit which will secur,
advantageous loans upon good faith.
Indus trial activity has accumulated, though
not Immediately available, capital and satsfacto
factory provisions for punctual pay ment of &C
cruing interests and ultimate reimbursement OF
the principal.
| The subscription for the remaining 5-20's and
deposits for temporary loans. therefore. mus. be
| directed All reasonable expectation of mean:
for the service of the current year, except from
negotiations under the act OF last session, the
seems to be looked for from these two source
have already been stated, and amount to Sl20,
059, 500. Ifthis aggregate be deducted from tn,
amount to be provided by loans for the last sever
months of the current year, already shown to b.
1926 leo 999. TO be provided by negotiations un
der the act of last session. and under some lik,
act must be provided in some like manner, i
necessary. the sum of $544 57S .54S estimated Al
likely to be required from loans for the 6sca
year 1865.
| The act Of last session authorized the loan
supposed to be required for the fiscal years o
| 1863 and 1864, aud OF the amount required 70
the service OF these two years TO the LIST OF De
cember, now current $50 900 900 in Unite,
States notes, and $50 DOC, 900 BY loan for tw,
years in five per cent treasury notes. have al
ready been provided under that legislation. Tn
act Is so veil conceived and expressed that littl
other legislation for the loans of 1864 and lS6
will be required than the application to thos
| years of its leading provisions. a
| IL will doubtless be thought expedient this SEES
sion TO authorize the borrowing in some form o
$500 900 900 for the current and $500 DOC, 90
for the next fiscal year. Indeed the only modifi
cation of the act of last session of the current
coming year seems 70 be just TO ascertain frou
time to time the amounts destroyer and lost, an
to replace them by new issues.
i ID. The repeal of the existing limitation of tn
deposit loan to 500 900. 900. and the substitu
ton of provision for a reserve equal in amour
| to half the peposit.
3D. The permission If the negotiation Of loan
redeemable absolutely al pleasure or at pleasur
after the time xed. mes more remote than fort
years, and the omission of the clause taxing tn
circulation of deposits. rs being more appropriat
to an internal revenue bill.
1t is hoped the other provisions OF the last ma
be retained in the new loan act. Under sue
lqpi Saffo he ontor nj 0uh