Assuming the total war expenses at $65,000,000 All the others at 12,000,000 ------------ In all, $77,000,000 From which deduct for existing revenue, 14,000,000 ------------ To be provided for by taxes and loans, $63,000,000 On the principle that the amount of annual taxes should be at least equal to the expenses of the peace establishment and the interest on the war loans, annual peace expenses at 27,000,000 And for interest on the loans of 1st and 2d years, viz. 1st year 25, and 2d year 45 millions at 7 per cent. 5,000,000 ------------ Together, $32,000,000 From which deduct existing revenue, 14,000,000 ------------ Leaves to be provided for by new taxes, at least $18,000,000 And by loans, 45,000,000 ------------ $63,000,000 The estimate of 5,000,000 dollars for the interest of the loans the second year after the war, is founded on the supposition that the direct and other internal taxes or duties laid for the first year, together with the existing revenue, and twenty-five millions borrowed by loans or Treasury notes, will be sufficient to defray the expense incurred prior to and during the first year of the war. The deficiency in the regular force for that year must be supplied by large drafts of militia, which will be as expensive at least as the regular soldiers whose place they will supply. But it appears very doubtful whether such a large sum as forty-five millions can be raised annually by loans and Treasury notes. It is necessary in the first place to correct some erroneous opinions respecting the extent to which these notes may be kept in circulation, and the legitimate objects to which they may be applied.