ly 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 disbursements for the remaining three quarters of
the current fiscal year (1864) will be shown in detail by the report of
the Secretary of the Treasury, to which I invite your attention. It is
sufficient to say here that it is not believed that actual results will
exhibit a state of the finances less favorable to the country than the
estimates of that officer heretofore submitted, while it is confidently
expected that at the close of the year both disbursements and debt will
be found very considerably less than has been anticipated.

The report of the Secretary of War is a document of great interest. It
consists of--

1. The military operations of the year, detailed in the report of the
General in Chief.

2. The organization of colored persons into the war service.

3. The exchange of prisoners, fully set forth in the letter of General
Hitchcock.

4. The operations under the act for en