642,664,628
_____________
Excess of exports over imports of merchandise 259,712,718

Aggregate of exports and imports 1,545,041,974

Compared with the previous year, there was an increase of $66,738,688
in the value of exports of merchandise and a decrease of $25,290,118
in the value of imports. The annual average of the excess of imports
of merchandise over exports thereof for ten years previous to June
30, 1873, was $104,706,922, but for the last six years there has
been an excess of exports over imports of merchandise amounting to
$1,180,668,105, an annual average of $196,778,017. The specie value
of the exports of domestic merchandise was $376,616,473 in 1870 and
$883,925,947 in 1881, an increase of $507,309,474, or 135 per cent.
The value of imports was $435,958,408 in 1870 and $642,664,628 in 1881,
an increase of $206,706,220, or 47 per cent.

During each year from 1862 to 1879, inclusive, the exports of specie
exceeded the imports. The largest excess of such exports over imports
was reached during the year 1864, when it amounted to $92,280,929. But
during the year ended June 30, 1880, the imports of coin and bullion
exceeded the exports by $75,891,391, and during the last fiscal year
the excess of imports over exports was $91,168,650.

In the last annual report of the Secretary of the Treasury the attention
of Congress was called to the fact that $469,651,050 in 5 per cent bonds
and $203,573,750 in 6 per cent bonds would become redeemable during the
year, and Congress was asked to authorize the refunding of these bonds
at a lower rate of interest. The bill for such refunding having failed
to become a law, the Secretary of the Treasury in April last notified
the holders of the $195,690,400 6 per cent bonds then outstanding that
the bonds would be paid at par on the 1st day of July following, or that
they might be "continued" at the pleasure of the Government, to bear
interest at the rate of 3-1/2 per cent per annum.

Under this notice $178,055,150 of the 6 per cent bonds were continued at
the lower rate and $17,635,250 were redeemed.

In the month of May a like notice was given respecting the redemption
or continuance of the $439,841,350 of 5 per cent bonds then outstanding,
and of these $401,504,900 were continued at 3-1/3 per cent per annum and
$38,336,450 redeemed.

The 6 per cent bonds of the lo