the progress of the war calling for unanticipated expenditures, the estimates submitted in July, 1861, for the year ending June 30, 1862, were exceeded by the actual expenditures. It will not be a matter of surprise if the estimates now submitted for the year ending June 30, 1863, are also exceeded. The estimates submitted at the July session of 1861, were based on estimates for an army of 300,000 men, and for a naval force quite inconsiderable in comparison with that found afterward indispensable. Congress increased the army to 500,000, in addition to special corps numbering over 50,000. In consequence of this the estimates for July required correction in December. For the reason that the President has called an additional force of 600,000 men the estimates for the current fiscal year must prove inadequate. The increase of the army, however, did not greatly effect disbursements between the date of the December report and the close of the fiscal year. The increase of debt did not, therefore, exceed the December estimate. On the contrary, while the estimate anticipated a public debt on the 30th June, 1862, of $517,372,802 93, its actual amount on that day was $514,211,371 92. This amount does not include unascertained claims, but only that debt, the evidences of which exist in the treasury, upon its books or in the form of requisitions in favor of creditors or disbursing officers. It is not probable, however, that at the date named, these claims much if at all exceeded the balance in the treasury, namely, $13,043,546 81. But while the public debt on July 1, 1862, did not reach the amount anticipated by these estimates, there is no room for the hope that the result of the current fiscal year or the next will exhibit a similar proportion. On the contrary, the estimate of the public debt on the 1st of July, 1863, heretofore submitted, must now be advanced, in view of the unexpected increase of expenditures, authorized and incurred or likely to be incurred, to $1,122,297,403 24; and on the supposition that the war may be continued with undiminished disbursements until the 1st of July, 1864, the debt likely to have been then incurred must be estimated at $1,744,685,586 80. The Secretary has endeavored to reduce the cost of the debt in the form of interest to the lowest possible amount, and he has thus far kept it within very moderate limits. The first loans, being of a magnitude hitherto undreamed of in our market, were necessarily made at an interest which he regarded as high; but large amounts are now obtained at five and four per cent, while the circulation of United States notes constitute practically a loan from the people to their government without interest. The average rate on the whole loan is thus reduced to 4 3.5 per cent. Whether a similar result may attend future loans must be determined partly by the legislation of Congress, partly by the conduct of the war, and partly by the condition of the markets. The statements for the annual receipts and expenditures for the last and current fiscal year, in comparison with those of December, must undergo modifications similar to those of the public debt. Both receipts and expenditures for the current fiscal year will be increased, the former by the operations of the tariff and internal revenue, and the latter by the exigencies of the war. The annual receipts for the fiscal year of 1862 from all sources, includ ing the balance of $2,257,065 80 in the Treasury from the preceding year, were $583,885,247 06; and the aggregate expenditures $570,841,700 25; leaving a balance in the Treasury, July 1st, 1862, of $13,043,546 81. From the receipts and expenditures should be deducted the amounts received and disbursed during the year on account of permanent and temporary debt, amounting to $96,096,922 09; leaving the total of receipts not applied in payment of debt $487,788,324 97, and the total of current disbursements $474,744,778 16. Both the amount of debt and the amount of expenditure for the last year fall short of the estimates. The actual receipts for the first quarter of the fiscal year 1863, commencing July 1, 1862, appear from the books of the Treasury; the receipts of the remaining quarters can only be estimated on the basis of appropriations made and asked for by the several departments. They have been and are estimated as follows: For the 1st quarter, the actual receipts from all sources, excluding loans and including the balance from last year were. $37,208,529 02 ing 1863, from the direct tax... To this must be added sums already realized from loans in all forms which amounted during the 1st quarter to...... And during the months of October and November, estimating for some of the last days of November, to..... $114,458,821 02 85,670,895 99 Making an amount already obtained from loans to 1st of December of...... And there must be added, also the amount which will For the 2d, 3d, and 4th, quarters, the estimated receipts are. 143,286,816 58 Making the total of actual and estimated receipts dur 180,495,345 60 $200,129,717 01 131,021,197 35 $511,646,259 96 On the other hand For the 1st quarter of the fiscal year 1863 the actual expenditures were...... $111,084,447 40 For the 2d, 3d, and 4th quarters the actual and esti- Making the whole amount actually expended or es timated.... To which must be added the estimate for payment of principal of public debt during the year of...... Making an aggregate, for the purposes, of....... 672,834,841 78 109,418,032 30 $893,346,321 48 95,212,456 14 $988,558,777 62 It is necessary to observe, however, that in the present state of the law the estimates of the department always largely exceed the expenditures. The law forbids the transfer of any part of an appropriation from one object or class of objects to another. Consequently, when any appropriation happens to be exhausted, expenditures for the objects of it, however important, must be arrested until a further appropriation can be had. Such an occurrence, during the recess of Congress, might occasion great public inconvenience and injury. Hence it has become usual to make every estimate large enough to cover all possible requirements under it till a session of Congress shall afford an opportunity of providing for any deficiencies which may thereafter occur. Hence there is always a large balance of unexpended appropriations at the end of every fiscal year, which, after two years from the making of them, are carried to the credit of what is called the surplus fund. It may be safely estimated, therefore, that of the ap propriations made and asked for, there will remain unexpended on the 30th June, 1863, and should, of course, be deducted from the apparent aggregate of expenditures, not less than.... Leaving as a true aggregate of expenditures for the year .. But of this sum there has been received and may be expected from customs, internal reve nue, etc..... $200,000,000 00 788,558,777 62 $180,495,345 60 And from loans.. 331,150,914 36 Making an aggregate of realized and anticipated resources of.. $511,646,259 96 And leaving to be provided for the current year by the action of Congress... $276,912,517 66 The estimate for the fiscal year 1864, ending on the 30th June in that year, must be conjectured. The estimates of expenditures have been framed on the supposed continuance of the war, and the estimates of receipts are based upon the operations of recently enacted laws, the working of which cannot be accurately foreseen. The estimates of expenditures are as follows: For the civil list...... For the Interior Department, pensions, Indians, etc. For the War Department.. For the Navy Department.. For interest on public debt. $25,081,510 08 10,346,577 01 738,829,146 80 68,257,255 01 33,513,890 50 For principal of public debt... 19,384,804 16 $895,413,183 56 To which must be added the expenditures for which appropriations made are estimated as remaining undrawn July 1, 1863..... $200,000,000 00 Making an aggregate of expenditures to July 1, 1864, for which appropriations are made or asked for, of $1,095,413,183 56 From which should be deducted the probable amount of appropriations which will remain undrawn on the 1st of July, 1864.... Making the true amount of probable expenditures during the fiscal year, 1864.... 250,000,000 00 $845,413,183 56 Making the aggregate of receipts for the fiscal year 1864 to be deducted from the aggregate of expenditures.... And leaving the amount of expenditures of the fiscal year 1864, to be provided for...... 223,025,000 00 $622,388,183 56 The whole amount to be provided by Congress, beyond resources available under existing laws, may therefore, upon the supposition of the continuance of the war, be stated as follows: The following is the statement for the fiscal year ending November 15, 1862: |