ed between 1862
and the close of the last fiscal year $518,361,806.28; the
actual reduction of the ascertained debt in that period has been
$720,644,739.61, being in excess of the reduction required by the
sinking fund act $202,282,933.33.

The amount of the public debt, less cash in the Treasury, November 1,
1878, was $2,024,200,083.18, a reduction since the same date last year
of $23,150,617.39.

The progress made during the last year in refunding the public debt at
lower rates of interest is very gratifying. The amount of 4 per cent
bonds sold during the present year prior to November 23, 1878, is
$100,270,900, and 6 per cent bonds, commonly known as five-twenties,
to an equal amount, have been or will be redeemed as calls mature.

It has been the policy of the Department to place the 4 per cent bonds
within easy reach of every citizen who desires to invest his savings,
whether small or great, in these securities. The Secretary of the
Treasury recommends that the law be so modified that small sums may
be invested, and that through the post-offices or other agents of the
Government the freest opportunity may be given in all parts of the
country for such investments.

The best mode suggested is that the Department be authorized to issue
certificates of deposit, of the denomination of $10, bearing interest
at the rate of 3.65 per cent per annum and convertible at any time
within one year after their issue into the 4 per cent bonds authorized
by the refunding act, and to be issued only in exchange for United
States notes sent to the Treasury by mail or otherwise. Such a
provision of law, supported by suitable regulations, would enable any
person readily, without cost or risk, to convert his money into an
interest-bearing security of the United States, and the money so
received could be applied to the redemption of 6 per cent bonds.

The coinage of gold during the last fiscal year was $52,798,980. The
coinage of silver dollars under the act passed February 28, 1878,
amounted on the 23d of November, 1878, to $19,814,550, of which amount
$4,984,947 are in circulation, and the balance, $14,829,603, is still
in the possession of the Government.

With views unchanged with regard to the act under which the coinage of
silver proceeds, it has been the purpose of the Secretary faithfully
to execute the law and to afford a fair trial to the measure.

In the present financial condition of the country I am persuaded that
the