We stated above that the Canadian financial statement for 1863, presented a more favorable balance than has been the case for several years past. It will be seen from the detailed statement which we give below that the five great sources of revenue, the Customs, Excise, Public Works, Post Office and Territorial Revenue have together produced $7,662,490 98, which exceed the receipts from the same sources in 1862 by $1,104,961 00; the minor revenues of the Consolidated Fund have realized $914,821 02, being an increase upon 1862 of $119,335 10; and the receipts of the Trust Funds and other open accounts have been $1,183,004 34, which is an increase of $127,575 76. Whilst the revenue has thus increased in the aggregate $1,351,871 86, there has been a diminution of

expenditure to the extent of $228,873 47, making a total of $1,580,745 33; but in spite of this great improvement upon 1862, there is still a serious deficiency although very much less than was estimated.

Expenditure less Redemption of Debt......

Receipts less sale of Debentures and Sinking Fund...

Deficiency.....

$10,742,807 41

9,760,316 34

$982,491 07

The following is a detailed statement of the entire payments and receipts during the last three years.

PUBLIC ACCOUNTS OF THE PROVINCE OF CANADA.

The total debt of Canada is $65,238,649 15, and the total annual interest is $3,483,920 38. The rates of interest are as follows:

1,092 00

754 14

97,777 46

91,523 31

26,500,203 47

28,629 97

Total debt.......

$65,238,649 15

The following is a detailed statement of the debt when payable, &c. :

LETTERS OF E. G. SPAULDING TO MORRIS KETCHUM.

BUFFALO, March 19, 1864.

MORRIS KETCHUM, Esq., Banker, New York:

DEAR SIR:-When I met you in New York, in December last, you expressed the apprehension that the rate of interest on government securities would be reduced to five per cent, that there would be a further inflation of the currency, and consequently that gold would advance, and the price of labor and commodities would be greatly increased. The apprehensions which you then expressed are now being realized, and the government and people are alike feeling its effects. By reducing the rate of interest from six to five per cent, one per cent interest is apparently saved to the government on its notes and bonds, but all the flour, beef, pork, and other supplies for the army and navy have advanced ten to fifteen per cent, thereby making it necessary for the government to pay ten to fifteen per cent more for all supplies purchased, while it saves only one per cent on its notes and bonds.

Five per cent bonds, running from five to twenty years, can, no doubt, be floated on the market nominally at par, if the currency is sufficiently diluted and the volume increased large enough for the purpose; and so may four per cent bonds be carried on the surface, if the currency is paid out in such a large volume as to still further dilute the government paper already afloat. But if this should be successfully carried out, and four per cent bonds be negotiated at par in consequence of a further expansion of the currency, gold would advance to 90 or 100 per cent, and all commodities for the army and navy would advance in the same proportion. What would be saved in the rate of interest would be lost fourfold on the enhanced price of all supplies purchased to carry on the

war.

Five per cent interest, payable in currency, which has been the rate since the twenty-first of January last, for redeeming legal-tender notes, is a most exhilerating atmosphere to be reveled in by speculators and jobbers, but very unsatisfactory to men of steady purposes, who are engaged in manufactures, commerce, and other legitimate pursuits. With such a money market all articles consumed by laborers advance in price, rents increase, skilled laborers and common laborers combine and strike for higher wages, in order to be able to pay for the enhanced prices of living, caused by the excess of proper issues.

In order to illustrate what I have to say further on this subject, you will, I trust, allow me to make a brief review of the laws of Congress bearing upon the increased price of labor and commodoties, and the advance in the price of gold. Gold and silver, as you well know, are the standard of value in conducting the commerce of the civilized nations of the world. The commerce of the United States is still carried on with all the foreign nations with gold as the standard or measure of value.

The laws of Congress, passed in 1792, fixed the gold standard in the United States, for the ten dollar eagle, at 247 grains and four eights of a grain of pure gold, and half the quantity for the half eagle. The law