REPORT ON THE FINANCES. NOVEMBER, 1804. 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: REVENUE. The nett revenue, arising from duties on merchandise and tonnage, which accrued during the year 1802, and on which the estimates of last year were predicated, amounted, as will appear by the statement (A,) to $10,154,000. The nett revenue, arising from the same source, which accrued during the year 1803, has amounted, as appears by the same statement, to 11,306,000 dollars; and it is ascertained that the nett revenue which accrued during the first three quarters of the year 1804, considerably exceeds that of the corresponding quarters of the year 1803. Without drawing any inference from the increase of the present year, (an increase which must be ascribed to the situation of Europe, and will, eventually, be diminished by subsequent re-exportations,) that branch of the revenue may, exclusively of the Mediterranean fund, be safely estimated at 10,730,000 dollars, which is the average of the two years 1802 and 1803. The actual payments into the Treasury on account of those duties, during the year ending on the 30th of September last, amount nearly to the same sum;* and there is no reason to suppose that the receipts of the ensuing, will fall short of those of last year. The statement (B) exhibits, in detail, the several species of merchandise, and other sources, from which that revenue was collected, during the year 1803. It also appears that the revenue arising from the sales of public lands is gradually increasing. The statement (C) shows that, exclusively of the September sales, at Cincinnati, three hundred and fourteen thousand acres. have been sold during the year ending on the 30th of September last. The proceeds of those sales, calculated on the supposition that every purchaser will be entitled to the discount allowed in case of prompt payment, would yield five hundred and fifteen thousand dollars. And, notwithstanding the difficulties which exist in drawing into the Treasury the moneys collected by the receivers of the remote land offices, it is believed that the actual receipts from that source will, for the ensuing year, exceed four hundred and fifty thousand dollars. The permanent revenue of the United States may, therefore, including the duties on postage, and other small incidental branches, be computed at eleven million two hundred thousand dollars. And the payments into the Treasury, during the year 1805, on account of the temporary duties which constitute the "Mediterranean fund," are estimated at five hundred and fifty thousand dollars; making, in the whole, for the probable receipts of that year, a sum of $11,750,000 * 10,729,708 dollars and 54 cents. EXPENDITURES. The expenses of the year 1805, which must be defrayed out 2. For the civil department, and all domestic expenses of a 3. For expenses incident to the intercourse with foreign nations, including the payment of awards under the 7th article of the British treaty, and the permanent appropriation for Algiers $8,000,000 952,000 294,000 4. For the military and Indian departments, including the 954,000 Extraordinary expenses of the last expedition against Tripoli,which will be payable in the year 1805, and are chargeable to the Mediterranean fund $650,000 590,000 1,240,000 6. Reserved out of the Mediterranean fund, for meeting other extraordinary expenses, which may be incurred under the act constituting the fund 100,000 eleven million five hundred and forty thousand dollars, and deducted from the revenue of 11,750,000 leaves a surplus of more than two hundred thousand dollars. 210,000 MEDITERRANEAN FUND. The sum which may probably be received during the year 1805, on account of that fund, and the payments during that year, which will ultimately be charged to the fund, are included in the preceding estimate of receipts and expenditures; but it is necessary to give a distinct view of the whole amount of revenue and expenses under that head. The value of merchandise paying duties ad valorem, which was imported in the year 1802, amounts, after deducting the exportations of the same year, to 31,706,000 dollars. The value of the same description of merchandise, imported in the year 1803, amounts to 34,370,000 dollars. The additional duty of 2 per cent. on that description of imported articles constitutes the Mediterranean fund, and, calculated on the average importations of the two years, would have yielded, annually, 826,000 dollars. But several articles, which, in the years 1802 and 1803 paid duties ad valorem, having, in lieu thereof, been charged with specific duties, by an act of last session, are not liable to the additional duty of 21 per cent. Although the value of those articles cannot be precisely ascertained, it is believed that the de duction, on that account, will not amount to 50,000 dollars, and that the proceeds of the additional duty may be computed at the annual sum of 780,000 dollars; and for the eighteen months commencing on the 1st July, 1804, and ending on the 31st of December, 1805, at 1,170,000 dollars. The expenses authorized under the act constituting the fund have been predicated on that estimate, and apportioned in the following manner: 1. For the Navy Department, (in addition to the annual appropriation of 650,000 dollars,) viz: There had been advanced, from the ordinary revenue, prior to the 30th of September, 1804 - $350,000 A further payment will be made before the 1st January, 1805, of To be paid during the year 1805, on account of this fund, as stated under the 5th item of expenditures for that year 130,000 590,000 $1,070,000 2. Reserved for other extraordinary expenses which may be incurred for the same object, being the 6th item of expenditures for the year 1805 100,000 $1,170,000 Those duties began to operate on the 1st day of July last; but, as they are payable six, eight, nine, ten, and twelve months after the importation, no part will be paid into the Treasury during the present year; and a sum of only 550,000 dollars is expected to be received in the course of the year 1805. For that sum only, credit has been taken in the general estimate of receipts for that year; whilst a part of the 1,170,000 dolllars, chargeable to the fund, has already been expended, and the rest is included in the preceding estimate of expenses for 1805. The difference, amounting to 620,000 dollars, will, at the end of next year, consist of outstanding bonds, payable in 1806. And, if the additional duty should, as well as the extraordinary expense for which it is appropriated, cease at that time, that outstanding balance will, as it is collected, replace in the Treasury the sum advanced from the ordinary revenues, in anticipation of the proceeds of the fund. For it is hoped that the situation of the Treasury will render it unnecessary to recur to the authority given by the act, to borrow on the credit of the fund. BALANCE IN THE TREASURY. The greater part of the balance of 5,860,981 dollars and 54 cents, which, on the 30th day of September, 1803, remained in the Treasury, was, in last year's report, considered as applicable to the payments of certain extraordinary demands therein stated." As no payment has been made on that account, during last year, besides the first instalment of 888,000 dollars due to Great Britain, nor any other extraordinary expense been discharged than the advance of 350,000 dollars, in anticipation of the Mediterranean fund; the balance remaining in the Treasury on the 30th of September, 1804, still amounted to 4,882,225 dollars and 11 cents. That sum, together with the estimated surplus of revenue for the year 1805, the sum advanced from the ordinary revenue to the Mediterranean fund, and the arrears of direct tax and internal revenues, may still be considered as sufficient to discharge the balance of 1,776,000 dollars, due to Great Britain; the loan of 200,000 dollars, due to Maryland; and two millions of dollars on account of the American claims assumed by the French convention. As the greater part of those demands will be paid in the course of the year 1805, the balance will not, probably, at the end of that year, exceed the sum which it is always expedient to retain in the Treasury. PUBLIC DEBT. It appears by the estimate (D,) that the payments on account of the princi. pal of the public debt, have, during the year ending on the 30th of September last, amounted to $3,652,887 15 And during the three years, and a half, commencing on the 1st day of April, 1801, and ending on the 30th September 1804, to $13,576,891 86 During the same period, a new debt of thirteen millions of dollars has been created by the purchase of Louisiana, viz: Six per cent. stock issued in conformity with the conven tion Amount of American claims assumed by the convention, and for the payment of which authority has been given to obtain a loan, two millions thereof being already provided for out of the surplus specie in the Treasury $11,250,000 1,750,000 $13,000,000 Another view of the subject may be given in the following manner: The balance in the Treasury amounted on the 1st day of April, 1801, to - $1,794,044 85 And on the 30th of September 1804, to 4,882,225 11 Making an increase of $3,088,180 26 From which deducting the proceeds of the sales of the bank shares 1,287,600 00 Leaves for the increase arising from the ordinary revenue 1st. Payments on account of the domestic Making altogether - $13,576,891 86 1,800,580 26 888,000 00 14,464,891 86 16,265,472 12 And from which, deducting fifteen millions, being the purchase money of Louisiana, Leaves - 15,000,000 00 - $1,265,472 12 |