peculiar obligations to economy in disbursement and energy in action.

The revenue from all sources, including loans, for the financial year
ending on the 30th of June, 1861, was $86,835,900.27, and the
expenditures for the same period, including payments on account of the
public debt, were $84,578,834.47, leaving a balance in the Treasury on
the 1st of July of $2,257,065.80. For the first quarter of the financial
year ending on the 30th of September, 1861, the receipts from all
sources, including the balance of the 1st of July, were $102,532,509.27,
and the expenses $98,239,733.09, leaving a balance on the 1st of
October, 1861, of $4,292,776.18.

Estimates for the remaining three quarters of the year and for the
financial year 1863, together with his views of ways and means for
meeting the demands contemplated by them, will be submitted to Congress
by the Secretary of the Treasury. It is gratifying to know that the
expenditures made necessary by the rebellion are not beyond the
resources of the loyal people, and to believe that the same patriotism
which has thus far sustained the Government will continue to sustain it
till peace and union shall again bless the land.

I respectfully refer to the report of the Secretary of War for
information respecting the numerical strength of the Army and for
recommendations having in view an increase of its efficiency and the
well-being of the various branches of the service intrusted to his care.
It is gratifying to know that the patriotism of the people has proved
equal to the occasion, and that the number of troops tendered greatly
exceeds the force which Congress authorized me to call into the field.

I refer with pleasure to those portions of his report which make