“A moderate reservation from the interest on the bonds would compensate the United States for the preparation and distribution of the notes, and a general supervision of the system, and would lighten the burden of that part of the public debt employed as securities. The public credit, moreover, would be greatly improved, and the negotiation of new loans greatly facilitated by the steady market demand for Government bonds which the adoption of the proposed system would create. “It is an additional recommendation of the measure of considerable weight, in my judgment, that it would reconcile as far as possible, all existing interests, by the opportunity offered to existing institutions to reörganize under the act, substituting only the secured uniform national circulation for the local and various circulation, secured and unsecured, now issued by them. “The receipts into the treasury, from all sources, including loans, and balance from the preceding year, for the fiscal year ending on the 30th June, 1862, were $583,885,247 06, of which sum $49,056,397 62 were derived from customs $1,795,331 73 from the direct tax; from public lands, $152,203 77; from miscellaneous sources, $931,787 64 from loans in all forms, $529,692,460 50. The remainder $2,257,065 80, was the balance from last year. “The disbursements during the same period were for Congressional, Executive, and Judicial purposes, $5,939,009 29; for foreign intercourse, $1,339,710 35; for miscellaneous expenses, including the mints, loans, post office deficiencies, collection of revenue, and other like charges, $14,129,771 50; for expenses under the Interior Department, $3,102,985 52; under the War Department, $394,368,407 36; under the Navy Department, $42,674,569 69; for interest on public debt, $13,190,324 45; and for payment of public debt, including reimbursement of temporary loan, and redemptions $96,096,922 09; making an aggregate of $570,841,700 25, and leaving a balance in the treasury on the first day of July, 1862, of $13,043,546 81. “It should be observed that the sum of $96,096,922 09, expended for reimbursements and redemption of public debt, being included also in the loans made, may be properly deducted, both from receipts and expenditures, leaving the actual receipts for the year, $487,788,324 97; and the expenditures $474,744,778 16.... “On the 22d day of September last a proclamation was issued by the Executive, a copy of which is herewith submitted. “In accordance with the purpose expressed in the second paragraph of that paper, I now respectfully call your attention to what may be called ‘compensated emancipation.’