vere longer in withholding
our recognition of the independence and sovereignty of Hayti and
Liberia, I am unable to discern it. Unwilling, however, to inaugurate a
novel policy in regard to them without the approbation of Congress, I
submit for your consideration the expediency of an appropriation for
maintaining a charge d'affaires near each of those new States. It does
not admit of doubt that important commercial advantages might be secured
by favorable treaties with them.

The operations of the Treasury during the period which has elapsed since
your adjournment have been conducted with signal success. The patriotism
of the people has placed at the disposal of the Government the large
means demanded by the public exigencies; Much of the national loan has
been taken by citizens of the industrial classes, whose confidence in
their country's faith and zeal for their country's deliverance from
present peril have induced them to contribute to the support of the
Government the whole of their limited acquisitions. This fact imposes
peculiar obligations to economy in disbursement and energy in action.

The revenue from all sources, including loans, for the financial year
ending on the 30th of June, 1861, was $86,835,900.27, and the
expenditures for the same period, including payments on account of the
public debt, were $84,578,834.47, 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 $98,239,733.09, 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 branc