. I regard our immigrants as one of the principal
replenishing streams which are appointed by Providence to repair the
ravages of internal war and its wastes of national strength and health.
All that is necessary is to secure the flow of that stream in its present
fullness, and to that end the Government must in every way make it
manifest that it neither needs nor designs to impose involuntary military
service upon those who come from other lands to cast their lot in our
country. The financial affairs of the Government have been successfully
administered during the last year. The legislation 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 opin