The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1864-07-15
THE FEDERAL FINANCES.


TREASUR4 DEPARTMENT., June 20, 1864.
SIR-In precious communications to the
| Committee of Ways and Means, have on sew
| eral occasions, expressed the opinion that
| in order to insure sufficient means even for
| considerably reduced expenditures, a large in
crease OF internal revenue was indispensable,
| and that this increase should be such that the
internal revenue and the receipts from customs
would be equal at least to one half the national
expenditure.
On the 4th of December, 1862, estimated
the expenditure for the fiscal year which ends
tomorrow at $685. 413, 1873 20; and expressed
| the opinion that the expenditure not met from
revenue could be provided from loans.
| This opinion rested upon the expectation
| that success would attend our arms; that the
rebellion if not crushed within the year, would
receive snch fatal blows that its complete sup
| precision within brief period would be secur-
| ed, ard tnat the year would, therefore, close
| with diminished and diminishing expenditures.
| The reduced expenditures of the first quarter
of the pow closing fiscal year, and the general
condition OF affairs at the commencement of the
| present session Of Congress in December 1868
! seemed TO justify this opinion, and to warrant
| the expectation that the amount to be provided
| by loans would be far less than was anticipated
| in December 1862, and l reduced my estimate
| accordingly.
| Events have shown that the original estimate
| by new bOunties, by new levies of troops, and
| by the great disbursements incident to the vast
| movements now in progress, have not only
| gone beyond my second estimate, but have
| largely exceeded nv first. The revenue, how
| ever, has also largely exceeded the second, and
| by several millions also my first estimate.
| The necessity of meeting these expenditures
recently so rapidly augmented, has led to the
| increase of circulation beyond its due proper
| ton to wants for money payments, and to the
offering of bends in quantities beyond the i'm
mediate demand for home investment Hence
! depreciation in currency and in the market va
lue OF bonds There is no good reason, in gen.
eral, except over supply, for any considerable
difference in purchasing power between Uni
| ted States five dollar coin and United States
| five dollar note, nor for the disposal of United
States five per cent. bonds, payable principal
and interest in coin, for less than par in notes
or coin. The injurious influences of over-sup-
ply have now, however, been aided by fears of
i'll success in military operations, and by other
alarms, excited by the INSCRIPTIONS acts of
traitors and enemies.
To insure fair price for bonds, and to pro-
vide for gradual reduction in the volume of
| circulation, and thereby insure diminution of
sential to reduce the amount of prospective
loans.
To effect this latter reduction, there are but
| two ways. Expenditure must be reduced, or
| revenue must be increased. The best way is
to reduce expenditures and increase revenue
In the internal revenue and tariff bills which
have just received the sanction of the ma
tional Legislature, it was doubtless the inten-
ton OF Congress to increase revenue by the
full amount required by the public eXigences;
but am constrained to think that this inten-
ton has by no means been accomplished.
The aggregate revenue from all sources for
the year closing tomorrow, will reach, as es-
timated, $242, 600, goo; from customs, $103,-
000, 600; from internal revenue, S109, 600 600;
| from miscellaneous sources, including sales of
gold and exchange, $4,000. 900. The ex-
penses will reach, including two months pay
of the army, due July 1, 1864 according to
the best estimates that can now be made
| $3.50, GO0, 600.
The amount in excess of revenue is $640 000,-
| 600. The necessity of providing this large
| sum from loans in various FORMS has caused
| the present condition of affairs. The aggre.
gate revenue from the tariff, for the next fiscal
| year, cannot be safely estimated at more than
| 1000, 600; and the income from miscellane-
Gus sources may be set down at $40, 600, 900,
with chance of increase, if the insurrectiona-
| ny district trade bill shall become law, to
$50, 600, 600. have caused careful estimates
to be made of the probable income from inter-
nal duties by Collector Orion of New York
and Acting Con missioner Rollins, and their
| experience and SOundneSS of Judgment lead me
to rely very confidently on their conclusions.
| Collector OrsOn estimates the amount at $780,
600 900, and Acting Commissioner Rollins at
$2z3.OOO, 900. Taking the highest amount and
assuming that the miscellaneous receipts will
reach So, 900, 900, the whole amount of reve-
nue. for the year cannot be set down at more
than $31S, 100000 The expenditure of the
| year cannot be stated even with tolerabe accu-
racy; but there is nothing in our experience
which will justify the setting of it at less than
$3.50 100000 1t is more likely to reach $780,,
600 600 or $3.50, 900, 600. Take the mean sum
and deduct the $31S, 900, 900 of the expected
revenue and the difference is 1882, 900, 600 to
be raised by loans Can this be done2 The
loan bill only provides for $500 600, 900; and
that is the very largest sum in my judgment
that can reasonably be attempted.
There remains, then, SS2 coo 600 to be pro-
vided for. and all considerations of public in
terest seem to me to require imperatively that
it be raised by an increase of revenue. With
such an increase, it is probable that our credit
will be so improved that all the great objects
already indicated can be accomplished.
1t is useless to expect any increase in the