s recollected that the direct tax and excise were repealed soon after
the termination of the late war, and that the revenue applied to these
purposes has been derived almost wholly from other sources.

The receipts into the Treasury from every source to the 30th of
September last have amounted to $16,794,107.66, whilst the public
expenditures to the same period amounted to $16,871,534.72, leaving in
the Treasury on that day a sum estimated at $1,950,000. For the probable
receipts of the following year I refer you to the statement which will
be transmitted from the Treasury.

The sum of $3,000,000 authorized to be raised by loan by an act of the
last session of Congress has been obtained upon terms advantageous to
the Government, indicating not only an increased confidence in the faith
of the nation, but the existence of a large amount of capital seeking
that mode of investment at a rate of interest not exceeding 5 per cent
per annum.

It is proper to add that there is now due to the Treasury for the sale
of public lands $22,996,545. In bringing this subject to view I consider
it my duty to submit to Congress whether it may not be advisable to
extend to the purchasers of these lands, in consideration of the
unfavorable change which has occurred since the sales, a reasonable
indulgence. It is known that the purchases were made when the price
of every article had risen to its greatest height, and that the
installments are becoming due at a period of great depression. It
is presumed that some plan may be devised by the wisdom of Congress,
compatible with the public interest, which would afford great relief
to these purchasers.

Considerable progress has been made during the present season in
examining the coast and its various bays and other inlets, in the
collection of materials, and in the construction of fortifications for
the defense of the Union at several of the positions at which it has
been decided to erect such works. At Mobile Point and Dauphin Island,
and at the Rigolets, leading to Lake Pontchartrain, materials to
a considerable amount have been collected, and all the necessary
preparations made for the commencement of the works. At Old Point
Comfort, at the mouth of James River, and at the Rip-Rap, on the
opposite shore in the Chesapeake Bay, materials to a vast amount have
been collected; and at the Old Point some progress has been made in the
construction of the fortification, which is on a very extensive