I 33 Q.l "ri ifte re-exprirtation of the merchandise 3,163,508 73 :.orreart>d expenditures for ijsrht- housev, principally along t he South- ern coast 1,324,433 95 lucre ■» sod expenditures tor public works 4.483.155 3? The other items of increased expenditures are numerous and rvely small in | amount, arising largely from the material growth of the count ry. In the matter referred to by you, of the al- legation that during eleven years of peace there have been collected through Federal taxation thirteen times the amount of the legal-tender notes, and that four times their amount have been squandered in useless ex- pense, I have to state that the amount oi legal-tender notes outstanding being $369,- 619,228, thirteen times thi& amount will give as the alleged amount of Federal taxation during the period mentioned $4,805,049,964, and four times the amount will give as the amount, alleged to have been squandered in useless expense $1,478,476,912, but as shown by the above official table the Government, during the eleven years since the war, has in fact received from taxation only as follows : From duties on imported goods... 2t From internal revenue taxes. .... 1,820,1 ' 5,- 13 61 Frcm direct tax 9,3 i 7, 33 j 84 In all. 3,8.8,722,765 71 Or less than the amount alleged by $995,327,198 27 In addition to the amounts received from such taxation there have been received, how- ever, during the same period, amounts as fol- lows : From sales of public lands $22,790,357 60' From premiums on loans and sales of gold 167,037,384 88 From miscellaneous sources, such as profits on coinage, sales of con- demned property, patent fees, in- come from sfeal islands, &c, 193,083,293 64 But these amounts are in no sense derived from taxation. Combining them, however, with the amounts received from taxation, as above stated, the tottl receipts of the Govern- ment during the period in question will be but $4,198,683,801.34, which is less than the amount alleged to have been received from taxation alone by $612,416,162 66. Of the moneys collected by the Government during the past eleven years there have been paid — For interest on the public debt $1,335,344,845 27 For redemption of the public debt.. 658.992.240 47 For pensions 296,2-9,885 §( For payment of claims arising from the war, bounties, premiums on loans as against, premiums received, as far as ascertained by a careful examination of the books of the Department. 605,258,407 SS Making in all $2,893,825,365.83, and leaving to pay all the expenses of the Government for the eleven years, arrav, navy, Congress, the civil H*t, Indians, foreign intercourse, includ- ing the purchase of Alaska and the largely multiplied expenses of the Government in handling its debt, collecting its revenues, &e., only $1,298,808,436.01, which, it will be noticed, is less than t.be amount alleged t« have been squandered by $179,8,475 99. In the ma ter of heepiug the public ex penses within Its income it will be seen that notwithstanding the heavy expenses tor in- terest on the public debt, payment- of pen- sions and claims arising from the war, as; above stated, t oe Government las met all i*s I other cur enr obligations and bad a surplus ' ariv income over its expenses as hollows- ISM $37,223/203 07 1.867 133,^91,335 H 1868 28,297,798 40 1869 48,078,469 41 1870 101,601,916 88 1871 91,146,7 6 64 7872 96, 588,904 89 L873 •. 43,392,959 34 1>74 2,344,882 3 ' 1875 13,376,658 26 1870 29J22.241 83 In all $624,165,120 19 Meanwhile the taxation has been reduced since the war an amount estimated in the finance report of 1872 of $300,350,171.00. Concerning the losses from defaulting office rs it will be seen by reference to an In closed statement that such losses have at- tended every administration of the Govern - meat since its organization, aggregating, 'to June, 30,1875, t he amount of $30,108,605.39, the ratio of loss per $1,000 to the amount in- vert ved being in the respective administrations as follows: Administration of George Washington $2 22 John Adams 2 52 Thomas Jefferson 2 75 James Madison 4 15 James Monroe • 8 58 J. Q,. Adams 4 Andrew Jackson 7 -52 Martin Yan Buren 11 71 Wm. Henry Harrison — John Tyler./... 6 « James K. Polk 4 08 Jachary Taylor ) 4 19 Millard Fillmore $ Franklin Pierce j* .5:3 James Buchanan 3 81 A. Lincoln 76 Andrew Johnson.. — U. S, Grant, (to June 30, 1875)....... 34 reaching the highest point in the administra- tion of Martin Van Buren and the lowest in the present administration. It will also be noticed that previous to 1861 the average loss per $1,000 on amount in- volved has been $5.17, while since that date it has averaged only 57 cents. The present credit of our country stands unparalleled in its history. The bonds of the United States are selling at above par in the principal commercial centres of the world. On * the. 12th of August last the Treasury sold 60,000 of the five per cent, bonds which it' he Id in trust for the payment of the judgment of the Court of Alabama Claims at $105.35 in gold for each one hundred dollar bond, and on the 24th of the same month a contract was entered mto for placing four and 0 no hnlf xn-.r cent; Gouda at par in exchange lor bo ads i tearing six per cent, interest. Referring again to periods previous to -.861, it appear* that the average annual expense* of the Government werts luut cased irotn the eleven year* previous to 1850 to the elitwi , eAre tulwequtiAi to Ui*t d*iw $9 per cent. During the latter period the annua’ mset of the Government were in excess « f its an- nual iucome, as follows : In the fiscal year 1858 $27.52 ,90i 42 In the fiscal year 1859 15,584,511 1C In the fiscal year 1860 7,065,939 To March 4, 1861 7,8v9, ,07 63 Making a, total excess of expenses over income of..^ $57,989,523 02 These deficiencies had to ]?e met, and the Government, to protect its credit anu to pro- vide for current disbursements, authorized the issue of bonds and Treasury notes to the mount of $68,425,900. At that, period the credit of the Government was such that of the $10,010,900 notes of 1860 issued, $4,840,000 were placed at a discount equivalent to 12 per centum interest, the rest of the loan at various rates from 6 to 11 per centum. The bonds of February, 1861, amounting o $18,415,000, were sold at a discount of $2,019,- 776.10, or, in other words, the Government re- ceived only $89.10 for a five percent. bond, the face value of which was $100. To recapitulate: Since 1865 the public debt to June 30, 1876, has been decreased $656,902,- 246.44, ami the annual interest charge sin ■ - 1869 has been reduced $31,285,281, and since 1866 the annual expenditures of the Govern- ment have been reduced $262,349,619.66, and Federal luxation more than $300,100,006. Every year since. 1866 the Gove’ nmeut has not only lived within its income, but has been able to save towards paying its indebted- ness an average amount per annum of $58,- 742,284.20. The losses of the present administration through defaulting officers and banks, com- pared with the amount, of money involved, have been to a marked degree less than those of any previous administration since the or- ganization of the Government. With a surplus revenue annually accruing and taxation diminishing, the credit of the country, despite an indebtedness of over two thousand millions, has-been raised to sucb an unprecedented point that its four and one half per cent, bonds, issued in redemption of six per cents, are selling rapidly at, home and abroad, above par in gold — a satisfactory con- trast with the condition of affairs from 1857 to 1861, when the Government, with an indebted- ness of less than one hundred millions, wae living beyond its income, and to meet current expenses was compelled to issue notes bearing interest equivalent to 12 per cent, per annum, and to sell its six-per-cent, bonds at a discount of U par cent, on heir face value. Very rg*£**.t fully, Chas. F. Conant, . Aesiatsuat Secretary.