These receipts are partly actual and partly estimated, and show an expected surplus of 43,679,000 dollars. For 1890-91 the estimated revenue is the same as above, and the expenditure 341,430,477 dollars, giving an estimated surplus, after providing for the sinking fund, of 43,569,522 dollars.

The surpluses are all available for reducing the public debt, and during the year ending June 30, 1889, the sum devoted to this purpose was 90,979,427 dollars, in addition to the sinking fund.

The following table shows the total amount of the national debt on the 1st of July at various periods from 1860 :

The net debt-that is, what remains after deducting the cash in the Treasury-was 1,056,081,004 dollars on Dec. 1, 1889; of the total amount 764,069,095 dollars bears no interest. Included in these figures is the United States liability for 64,623,512 dollars, or 12,924,7027. 6 per cent. bonds issued to the Pacific railways, which pay over 5 per cent. of their net earnings. The bulk of the debt of the United States was originally contracted at 6 and 5 per cent., but more than two-thirds of the interest-bearing debt is now at 4 per cent., and the rest at 4 per cent.

There is practically no direct taxation for national purposes, though personal and real property are taxed in the several States. The assessed valuation of the real property in the States is returned for 1880 at

The

3,036,766,925 dollars, and personal property 3,866,226,618 dollars. total amount of taxable property, real and personal, as assessed in 1888, amounts to 22,637,383,298 dollars.

II. STATE FINANCE.

The following table shows the debt (funded and unfunded) of each State, the amount raised by taxation, and the State tax on 100 dollars. (From Spofford's American Almanac.) In some States there is a Sinking Fund.

Defence.

I. ARMY.

By the eighth section of the first article of the Constitution of the United States, Congress is empowered in general 'to raise and support armies;' and by the second section of the second article, the President is appointed commander-in-chief of the army and navy, and of the militia when called into the service of the United States. On August 7, 1789, Congress established a Department of War as the instrument of the President in carrying out the provisions of the Constitution for military affairs.

By Acts of Congress approved July 28, 1866, March 3, 1869, and July 15, 1870, the number of land forces constituting the standing army of the United States was strictly limited. It was subsequently enacted that from the year 1875 there shall be no more than 25,000 enlisted men at any one time, exclusive of the signal corps, the authorised strength of which is 320 enlisted men, the hospital corps, the strength of which is 753 enlisted men, and of 125 general service clerks and 45 general service messengers. The actual commissioned and enlisted strength of the army on June 30, 1889, was as follows :—

Of the officers of the regular army, there are 19 general officers, 70 colonels, 91 lieutenant-colonels, 222 majors, 629 captains.

The 9th and 10th regiments of cavalry, and the 24th and 25th regiments of infantry, are composed of negro soldiers, but with white officers.

Besides the regular army each State is supposed to have a militia in which all men from 18 to 45 capable of bearing arms ought to be enrolled, but in several States the organisation is imperfect. The organised militia numbers 8,397 officers and 98,109 men. The number of citizens who in case of war might be enrolled in the militia is upwards of 6 millions. In 1880 the males of all classes between 18 and 44 years of age numbered 10,231,239, of whom 7,000,000 were native-born whites and 1,242,354 coloured.

The territory of the United States is divided for military purposes into eight departments, and these are grouped into three military divisions, namely, Division of the Missouri, composed of the Departments of Dakota, the Platte, Texas, and the Missouri; Division of the Pacific, composed of the Departments of the Columbia, California, and Arizona; Division of the Atlantic, composed of the Department of the East. The United States has a military academy at West Point.

II. NAVY.

Vessels in the U.S. navy are rated according to their tonnage, as follows:-1st rates, over 4,000 tons; 2nd rates, between 2,000 and 4,000 tons; 3rd rates, between 1,000 and 2,000 tons; 4th rates below 1,000 tons.

The following table shows the present state of the U. S. navy :

Also 12 tugs and 12 sailing vessels used for training, receiving, and store ships.

The list furthermore includes 5 double-turreted monitors awaiting completion. The actual strength of the fleet comprises 1 1st-rate partially protected cruiser; 8 2nd-rate cruisers, of which two are partially protected; 13 single-turret monitors and 21 cruisers of the 3rd rate; and 7 4th-rate gunboats, including one armoured torpedo-ram. The term 'protected' indicates that a vessel has a complete deflective steel deck of over 1 inch thickness (generally 2 to 4 inches); 'partially protected' indicates that the deflective deck exists only over a portion of the ship's length, protecting the machinery.

All the new vessels are being built of steel. Three will be vin-screw protected cruisers of 4 100 tons displacement, with

triple expansion engines, to make not less than 19 knots. The Newark will carry 10 6-inch B.L. rifles, several R.F. guns, and 6 torpedo tubes; this vessel is barque-rigged, spreading 9,586 sq. ft. of canvas. The two others, the Philadelphia and San Francisco, will carry 12 6-inch B.L. rifles, several machine and rapid fire guns, and 6 torpedo tubes. These will have three schooner masts, spreading 5,400 feet of fore and aft sails. The two other vessels authorised are Concord and Bennington; they are of 1,700 tons displacement and 16 knots speed, are propelled by twin screws driven by triple expansion engines, and are threemasted-schooner-rigged, spreading 4,400 sq. ft. of canvas. Their armament will consist of 6 6-inch B.L. rifles, several machine and R.F. guns, and 8 torpedo tubes.

Of the 5 monitors awaiting completion, 4 are of 3,815 tons displacement, and 1, the Puritan, of 6,000. The 4 smaller ones will carry a battery of 4 10-inch B.L.R., besides rapid fire and machine guns, and will be protected by steel armour 7 inches maximum thickness on the sides, and 11 to 12 in the turrets. Their speed is estimated at 10 knots. The Puritan will carry 4 12-inch B.L.R. and 6 4-inch rapid-fire guns and the same thickness of steel in her turrets, but will have 14 inches of. armour on her sides, 13 knots speed, and greater coal endurance.

The armoured battle-ship the Texas will have a redoubt protecting the machinery, and two turrets, in échelon, the maximum thickness of armour being twelve inches. The main battery will consist of 2 12-inch (one in each turret) and 6 6-inch B.L. rifles; there will also be provided 22 R.F. guns and 6 torpedo The displacement will be 6,300 tons, speed 17 knots; the engines are of the triple expansion type, calculated to give 8,600 I.H.P. with forced draught. There will be no sail carried, but two military masts for the service of machine guns. The armoured cruiser, the Maine, of 6,600 tons displacement, will carry 4 10-inch B.L.R., 6 6-inch and 13 R.F guns. The armour will consist of a steel belt 17 inches in maximum thickness.

A contract has been made for an armoured coast-defence vessel of 4,000 tons. The armament will consist of 1 16-inch B.L. in a 16-inch steel, armoured barbette forward; 1 12-inch B.L. in a 14-inch steel barbette aft; 6 4-inch rapid-fire guns, and a 15-inch pneumatic gun fixed in bow. The complete steel belt has a maximum thickness of 16 inches. The estimated speed is 16 knots.

By Act of Congress approved March 2, 1889, the following vessels were authorised to be constructed: 1 armoured coastdefence vessel of 3,030 tons cruising displacement. The battery to be carried comprises 1 15-inch pneumatic gun, 2 10-inch