At the close of the fiscal year ending June 30, 1852, there remained in
the Treasury a balance of $14,632,136. The public revenue for the fiscal
year ending June 30, 1853, amounted to $58,931,865 from customs and to
$2,405,708 from public lands and other miscellaneous sources, amounting
together to $61,337,574, while the public expenditures for the same
period, exclusive of payments on account of the public debt, amounted
to $43,554,262, leaving a balance of $32,425,447 of receipts above
expenditures.

This fact of increasing surplus in the Treasury became the subject of
anxious consideration at a very early period of my Administration, and
the path of duty in regard to it seemed to me obvious and clear, namely:
First, to apply the surplus revenue to the discharge of the public debt
so far as it could judiciously be done, and, secondly, to devise means
for the gradual reduction of the revenue to the standard of the public
exigencies.

Of these objects the first has been in the course of accomplishment in
a manner and to a degree highly satisfactory. The amount of the public
debt of all classes was on the 4th of March, 1853, $69,190,037, payments
on account of which have been made since that period to the amount of
$12,703,329, leaving unpaid and in continuous course of liquidation the
sum of $56,486,708. These payments, although made at the market price of
the respective classes of stocks, have been effected readily and to the
general advantage of the Treasury, and have at the same time proved of
signal utility in the relief they have incidentally afforded to the
money market and to the industrial and commercial pursuits of the
country.

The second of the above-mentioned objects, that of the reduction of the