be reciprocated exempts our consuls in
all other countries from taxation to the extent thus indicated. The United
States, I think, ought not to be exceptionally illiberal to international
trade and commerce.

The operations of the Treasury during the last year have been successfully
conducted. The enactment by Congress of a national banking law has proved
a valuable support of the public credit, and the general legislation in
relation to loans has fully answered the expectations of its favorers.
Some amendments may be required to perfect existing laws, but no change in
their principles or general scope is believed to be needed.

Since these measures have been in operation all demands on the Treasury,
including the pay of the Army and Navy, have been promptly met and fully
satisfied. No considerable body of troops, it is believed, were ever more
amply provided and more liberally and punctually paid, and it may be
added that by no people were the burdens incident to a great war ever more
cheerfully borne.

The receipts during the year from all sources, including loans and
balance in the Treasury at its commencement, were $901,125,674.86, and the
aggregate disbursements $895,796,630.65, leaving a balance on the 1st
of July, 1863, of $5,329,044.21. Of the receipts there were derived from
customs $69,059,642.40, from internal revenue $37,640,787.95, from direct
tax $1,485,103.61, from lands $167,617.17, from miscellaneous sources
$3,046,615.35, and from loans $776,682,361.57, making the aggregate
$901,125,674.86. Of the disbursements there were for the civil service
$23,253,922.08, for pensions and Indians $4,216,520.79, for interest on
public debt $24,729,846.51, for the War Department $599,298,600.83, for
the Navy Department $63,211,105.27, for payment of funded and temporary
debt $181,086,635.07, making the aggregate $895,796,630.65 and leaving the
balance of $5,329,044.21. But the payment of funded and temporary debt,
having been made from moneys borrowed during the year, must be regarded
as merely nominal payments and the moneys borrowed to make them as merely
nominal receipts, and their amount, $181,086,635.07, should therefore
be deducted both from receipts and disbursements. This being done there
remains as actual receipts $720,039,039.79 and the actual disbursements
$714,709,995.58, leaving the balance as already stated.

The actual receipts and disbursements for the first quarter and the
estimated receipts and d