islation of the last session of
Congress has beneficially affected the revenues, although sufficient
time has not yet elapsed to experience the full effect of several of the
provisions of the acts of Congress imposing increased taxation.

The receipts during the year from all sources, upon the basis of warrants
signed by the Secretary of the Treasury, including loans and the balance
in the Treasury on the 1st day of July, 1863, were $1,394,196,007.62, and
the aggregate disbursements, upon the same basis, were $1,298,056,101.89,
leaving a balance in the Treasury, as shown by warrants, of
$96,739,905.73.

Deduct from these amounts the amount of the principal of the public debt
redeemed and the amount of issues in substitution therefor, and the
actual cash operations of the Treasury were: receipts, $884,076,646.57;
disbursements, $865,234,087.86; which leaves a cash balance in the
Treasury of $18,842,558.71.

Of the receipts there were derived from customs $102,316,152.99, from
lands $588,333.29, from direct taxes $475,648.96, from internal revenue
$109,741,134.10, from miscellaneous sources $47,511,448.10, and from loans
applied to actual expenditures, including former balance, $623,443,929.13.

There were disbursed for the civil service $27,505,599.46, for pensions
and Indians $7,517,930.97, for the War Department $690,791,842.97, for
the Navy Department $85,733,292.77, for interest on the public debt
$53,685,421.69, making an aggregate of $865,234,087.86, and leaving a
balance in the Treasury of $18,842,558.71, as before stated.

For the actual receipts and disbursements for the first quarter and the
estimated receipts and disbursements for the three remaining quarters of
the current fiscal year, and the general operations of the Treasury in
detail, I refer you to the report of the Secretary of the Treasury. I
concur with him in the opinion that the proportion of moneys required to
meet the expenses consequent upon the war derived from taxation should
be still further increased; and I earnestly invite your attention to this
subject to the end that there be such additional legislation as shall be
required to meet the just expectations of the Secretary.

The public debt on the first day of July last, as appears by the books
of the Treasury, amounted to $1,740,690,489.49. Probably, should the war
continue for another year, that amount may be increased by not far from
$500,000,000. Held, as it is, for the most part by