ver expenditures of $43,392,959.
But it is not probable that this favorable exhibit will be shown for the
present fiscal year. Indeed, it is very doubtful whether, except with
great economy on the part of Congress in making appropriations and the
same economy in administering the various Departments of Government,
the revenues will not fall short of meeting actual expenses, including
interest on the public debt.

I commend to Congress such economy, and point out two sources where it
seems to me it might commence, to wit, in the appropriations for public
buildings in the many cities where work has not yet been commenced; in
the appropriations for river and harbor improvement in those localities
where the improvements are of but little benefit to general commerce,
and for fortifications.

There is a still more fruitful source of expenditure, which I will point
out later in this message. I refer to the easy method of manufacturing
claims for losses incurred in suppressing the late rebellion.

I would not be understood here as opposing the erection of good,
substantial, and even ornamental buildings by the Government wherever
such buildings are needed. In fact, I approve of the Government owning
its own buildings in all sections of the country, and hope the day is
not far distant when it will not only possess them, but will erect
in the capital suitable residences for all persons who now receive
commutation for quarters or rent at Government expense, and for the
Cabinet, thus setting an example to the States which may induce them to
erect buildings for their Senators. But I would have this work conducted
at a time when the revenues of the country would abundantly justify it.

The revenues have materially fallen off for the first five months of
the present fiscal year from what they were expected to produce, owing
to the general panic now prevailing, which commenced about the middle
of September last. The full effect of this disaster, if it should not
prove a "blessing in disguise," is yet to be demonstrated. In either
event it is your duty to heed the lesson and to provide by wise and
well-considered legislation, as far as it lies in your power, against
its recurrence, and to take advantage of all benefits that may have
accrued.

My own judgment is that, however much individuals may have suffered, one
long step has been taken toward specie payments; that we can never have
permanent prosperity until a specie basis is re