B.

OUTSTANDING AT END OF EACH QUARTER.

DUTIES ON

C.

At a meeting of the commissioners of the sinking fund, on the 7th of June, 1802:

Present-The Secretary of State,

The Secretary of the Treasury,

The Attorney General of the United States.

The Secretary of the Treasury reported to the board, that provision has already been made to meet nearly all the demands which will become due in Holland, during the course of the present year; but that it is necessary to make immediate provision for the payments on account of principal and interest which fall due there, during the first five months of the year 1803, and amounting to four million four hundred and thirty-nine thousand eight hundred and thirty guilders, and payable at the following periods, viz:

1st of January
1st of February
1st of March

1st of June

872,700 guilders.
986,350
601,000
1,979,780

That, from the great diminution of trade between this country and Holland, he has ascertained, during his late excursion to New York and Philadelphia, that it is impracticable to obtain bills on Holland to that amount; that the rate of exchange is already forty-one cents per guilder; and that any attempt on the part of the Government to procure the large amount now wanted, would indubitably raise, considerably, the rate of exchange:

That if it shall be attempted to remit by the way of England, the loss wi be also considerable; the present rate of exchange with that country being now above par, and raising, and would indubitably be enhanced, should Government come into the market for large purchases; and the rate of exchange between England and Holland being, by the last advices, ten guilders eight stivers per pound sterling, nor likely to become more favorable, which, supposing the whole amount in bills on England to be procurable, (which is not believed to be the fact,) at 168, would, including the commission of one per cent. in England, amount to forty-three and a half cents per guilder:

That the Bank of the United States, having been applied to, has refused to undertake to contract for making the necessary remittance; and that the two only considerable offers made to the Secretary are now submitted to the board, viz:

The Manhattan Company offer to remit the whole, at the rate of fortythree cents per guilder.

Alexander Baring offers to remit guilders 3,140,487 161, payable in Amsterdam, at the following dates, viz:

1st of January, 1803

1st of February

1st of March

1st of June

605,000 guilders.
685,000
do.

425,000 do.
1,425,487 161 do.

and, at the rate of forty-one cents per guilder: provided, however, that the United States shall sell to him the two thousand two hundred and twenty shares of the Bank of the United States, owned by the United States, at forty-five per cent. advance, or at the rate of five hundred and eighty dollars per share which last proposition is recommended by the Secretary of the Treasury as the most eligible; as, exclusively of the advantageous rate of ex

change thereby secured, the transaction will not have any unfavorable effect on the rate of exchange generally, and, by so considerably diminishing the demand, will enable the United States to obtain what is still wanted, at a reasonable rate; and because, in his opinion, the price obtained for the Bank shares is more than could be obtained were they thrown in the market for sale, and more than their intrinsic value. Whereupon, it was

Resolved, by the Board, That the Secretary of the Treasury be author ized to sell the shares of the stock of the Bank of the United States belonging to the United States, and that the proceeds thereof be applied to the payment of the capital or principal of any part of the debt of the United States, which had become due to the Bank of the United States before, or during the course of, the year 1796, and which remains still unpaid, in conformity to the provisions of the act entitled "An act making provision for the payment of certain debts of the United States," passed on the 31st day of May, 1796. JAMES MADISON, Secretary of State.

Attest:

ALBERT GALLATIN, Secretary of the Treasury.
LEVI LINCOLN, Attorney General.

EDWARD JONES, Secretary of the Board of

Commissioners of Sinking Fund.

REPORT ON THE FINANCES.

OCTOBER, 1803.

In obedience to the directions of the act supplementary to the act entitled "An act to establish the Treasury Department," the Secretary of the Treasury respectfully submits the following report and estimates.

The annual nett proceeds of the duties on merchandise and tonnage had, in former reports, been estimated at nine million five hundred thousand dollars. That estimated revenue, predicated on the importations of the years immediately preceding the late European war, and on the ascertained ratio of increase of the population of the United States, appears, from the experience of the last two years, to have been underrated. The nett revenue arising from that source, which accrued during the year 1802, exceeds ten million one hundred thousand dollars. The revenue, which has accrued during the first two quarters of the present year appears, from the best estimate that can now be formed, to have been only fifty thousand dollars less than that of the two corresponding quarters of the year 1802; and the receipts into the Treasury, on account of the same duties, during the year ending the 30th of September last, have exceeded ten million six hundred thousand dollars. Those facts afford satisfactory evidence that the wealth of the United States increases in a still greater ratio than their population, and induce a belief that this branch of the public revenue may now be safely calculated at ten millions of dollars.

From the statement (A,) it will appear that the same revenue for the last two years of the late European war, (1800 and 1801,) calculated at the present rate of duties, averaged 11,600,000 dollars a year; but although it might, with some degree of probability, be supposed that the renewal of hostilities will again produce a similar increase, no inference from that period is drawn in this report, in relation to the revenue of the ensuing years.

The statement (B) shows the several species of merchandise on which the duties on importations were collected, during the year 1802, the portion of that revenue which was derived from drawbacks, and that which arose from the extra duty on merchandise imported in foreign vessels.

Although the sales of the public lands, during the year ending on the 30th day of September last, were affected by the situation of the western country, two hundred thousand acres have been sold during that period; and as it appears by the statement (C,) that, independent of future sales, the sums already paid to the receivers, together with those which, exclusively of interest, fall due during the three ensuing years, amount to 1,250,000 dollars, the annual revenue arising from the proceeds of those sales cannot be estimated at less than four hundred thousand dollars.

The extension of post roads, and the acceleration of the mail, whilst dif fusing and increasing the benefits of the institution, have, as an object of revenue, rendered it less productive. The receipts from that source have amounted, during last year, to 27,000 dollars; but, as neither these, nor

those arising from some other smaller incidental branches, are of sufficient importance to affect any general result, the whole existing revenue of the United States will be computed at only ten million four hundred thousand dollars.

The permanent annual expenses of Government, which, under existing laws, must be defrayed out of that revenue, amount to nine million eight hundred thousand dollars, to wit:

1st. The annual appropriation of 7,300,000 dollars, for the payment of the principal and interest of the debt; of which about three millions and a half are at present applicable to the discharge of the principal, and the residue to the payment of in

terest

2d. The current expenses of Government, which, ac-
cording to the estimates for the year 1804, consist
of the following items, viz:

For the civil department, and all domestic expenses
of a civil nature
For expenses attending the intercourse with foreign
nations, including the permanent appropriation
for Algiers, and all other expenses relative to the
Barbary powers

$791,000

$7,300,000

184,000

For the military and Indian department

875,000

For the naval establishment, calculated on the supposition that two frigates and four smaller vessels shall be kept in commission

650,000

2,500,000

9,800,000

And deducted from the permanent revenue of

Leave a surplus revenue of six hundred thousand dollars applicable to other objects

The following extraordinary resources and demands, not being of a permanent nature, are not included in that calculation, to wit: The specie in the Treasury, which, on the 30th day of Septem

ber last, amounted to

$600,000

$5,860,000

The arrears of the direct tax, estimated at

250,000

The outstanding internal duties, amounting to near

400,000

And the sum which will be repaid to the United States, on account of advances heretofore made in England for the prosecution of claims, estimated at

150,000

Constituting an aggregate of more than six million six hundred thousand dollars; which, after reserving the sum which it is necessary to keep in the Treasury, will be sufficient to discharge the demands due on account of the convention with Great Britain, and amounting to

Sundry extraordinary expenses in relation to the conventions. with France and Great Britain, estimated at

$6,660,000

$2,664,000

100,000