78,834.47, leaving a balance in the treasury on the 1st of July
of $2,257,065.80. For the first quarter of the financial year ending on
the 30th of September, 1861, the receipts from all sources, including
the balance of the 1st of July, were $102,532,509.27, and the expenses
$98,239733.09, leaving a balance on the 1st of October, 1861, of
$4,292,776.18.

Estimates for the remaining three quarters of the year and for the
financial year 1863, together with his views of ways and means for meeting
the demands contemplated by them, will be submitted to Congress by the
Secretary of the Treasury. It is gratifying to know that the expenditures
made necessary by the rebellion are not beyond the resources of the
loyal people, and to believe that the same patriotism which has thus far
sustained the government will continue to sustain it till peace and union
shall again bless the land.

I respectfully refer to the report of the Secretary of War for information
respecting the numerical strength of the army and for recommendations
having in view an increase of its efficiency and the well-being of the
various branches of the service intrusted to his care. It is gratifying to
know that the patriotism of the people has proved equal to the occasion,
and that the number of troops tendered greatly exceeds the force which
Congress authorized me to call into the field.

I refer with pleasure to those portions of his report which make allusion
to the creditable degree of discipline already attained by our troops and
to the excellent sanitary condition of the entire army.

The recommendation of the Secretary for an organization of the militia
upon a uniform basis is a subject of vital importance to the future safety
of the country, and is commended to the serious attention of Congress.

The large addition to the regular army, in connection with the defection
that has so considerably diminished the number of its officers, gives
peculiar importance to his recommendation for increasing the corps of
cadets to the greatest capacity of the Military Academy.

By mere omission, I presume, Congress has failed to provide chaplains for
hospitals occupied by volunteers. This subject was brought to my notice,
and I was induced to draw up the form of a letter, one copy of which,
properly addressed, has been delivered to each of the persons, and at the
dates respectively named and stated in a schedule, containing also the
form of the letter, marked A,