to March 1, 1871 117,619,630.25
From March 1, 1871, to March 1, 1872 94,895,348.94
From March 1, 1872, to November 1, 1872
(eight months) 64,047,237.84
Total 363,696,999.87

With the great reduction of taxation by the acts of Congress at its last
session, the expenditure of the Government in collecting the revenue
will be much reduced for the next fiscal year. It is very doubtful,
however, whether any further reduction of so vexatious a burden upon any
people will be practicable for the present. At all events, as a measure
of justice to the holders of the nation's certificates of indebtedness,
I would recommend that no more legislation be had on this subject,
unless it be to correct errors of omission or commission in the present
laws, until sufficient time has elapsed to prove that it can be done and
still leave sufficient revenue to meet current expenses of Government,
pay interest on the public debt, and provide for the sinking fund
established by law. The preservation of our national credit is of the
highest importance; next in importance to this comes a solemn duty to
provide a national currency of fixed, unvarying value as compared with
gold, and as soon as practicable, having due regard for the interests of
the debtor class and the vicissitudes of trade and commerce, convertible
into gold at par.

WAR DEPARTMENT.

The report of the Secretary of War shows the expenditures of
the War Department for the fiscal year ending June 30, 1871, to be
$35,799,991.82, and for the fiscal year ending June 30, 1872, to be
$35,372,157.20, showing a reduction in favor of the last fiscal year
of $427,834.62.

The estimates for military appropriations for the next fiscal year,
ending June 30, 1874, are $33,801,378.78.

The estimates of the Chief of Engineers are submitted separately for
fortifications, river and harbor improvements, and for public buildings
and grounds and the Washington Aqueduct.

The affairs of the Freedmen's Bureau have all been transferred to the
War Department, and regulations have been put into execution for the
speedy payment of bounty, pay, etc., due colored soldiers, properly
coming under that Bureau. All war accounts, for money and property,
prior to 1871 have been examined and transmitted to the Treasury for
final settlement.

During the fiscal year there has been paid for transportat