$1,504,466 61 a 1. On account of annual reimbursement 2. Eight per cent, and exchanged six per cent. stocks purchased 3. Moneys in the hands of agents purchasing stock 4. Moneys in the hands of the Treasurer of the United States, as agent to the Commissioners of the Sinking Fund 1,006,005 00 193,860 80 The amount of eight per cent. purchased TREASURY DEPARTMENT, Register's Office, November 5, 1807. 191,815 55 $2,896,147 96 JOSEPH NOURSE, Register. REPORT ON THE FINANCES. DECEMBER, 1808. 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 nett revenue arising from duties on merchandise and tonnage, which accrued during the year 1806, amounted to $16,615,430 And that which accrued during the year 1807, amounted, as will appear by the statement (A,) to The same revenue, after deducting that portion which arose from the duty on salt, and from the additional duties constituting the Mediterranean fund, amounted, during the year 1806, to And during the year 1807, to 16,059,924 14,848,784 14,375,855 But it is ascertained that the nett revenue which accrued during the first three quarters of the year 1808 did not exceed eight millions of dollars, and is daily decreasing. The statement (B) exhibits in detail the several species of merchandise, and other sources, from which that revenue was collected during the year 1807. It appears by the statement (C) that the sales of the public lands have, during the year ending the 30th September, 1808, amounted to about 200,000 acres; and the payments by purchasers to near 550,000 dollars. The proceeds of sales in the Mississippi Territory, being, after deducting the surveying and other incidental expenses, appropriated, in the first place, to the payment of a sum of 1,250,000 dollars, to the State of Georgia, are distinctly stated. It appears by the statement (D) that the payments on account of the principal of the public debt have, during the same period, amounted to only 2,335,000 dollars. But the payments from the Treasury, for the annual reimbursement of the six per cent. and deferred stocks, and for the final reimbursement of the eight per cent. stock, will (exclusively of a sum of 730,000 dollars, already in the hands of the Treasurer, as agent for the commissioners of the sinking fund,) amount, during the last quarter of this year, to 5,376,000 dollars; making the total of public debt reimbursed from the 1st of April, 1801, to the 1st January, 1809, about thirty-three million six hundred thousand dollars, exclusively of more than six millions paid during the same period, in conformity with the provisions of the treaty and convention with Great Britain, and of the Louisiana convention. The public debt will, on the 1st day of January, 1809, amount to 56,647,663 dollars, consisting of the following items: Old six per cent. stock, nominal amount, $20,706,603 22 unredeemed Deferred stock, nominal amount, $11,717,476 92 unredeemed New six per cent. stock, exchanged at par for old six and deferred New six per cent. stock, arising from conversion of three per cent. stock, at 65 new six for 100 three per cent. stock $11,919,877 57 9,386,627 08 5,993,343 50 1,859,770 70 The interest on the whole debt, and the annual reimbursement on the six per cent. and deferred stocks, will, for the ensuing year, amount to 4,226,000 dollars, leaving, in order to complete the annual appropriation of 8,000,000 dollars, a sum of 3,774,000 dollars applicable to the reimbursement of the new exchanged six per cent. stock. The whole of that and of the other new six per cent., arising from the conversion of the three per cent. stock, amounting together to 7,853,000 dollars, would thus be reimbursed within two years. And after the 1st day of January, 1811, the whole annual amount payable on account of interest and annual reimbursement, could not, during the seven ensuing years, exceed 3,756,000 dollars. But, under existing circumstances, it is believed that the reimbursement of that new six per cent. stock will be nominal, and must be effected by incurring a new debt to an equal amount. The actual receipts into the Treasury during the year ending on the 30th September, 1808, as they principally arose from the revenue accrued during the preceding year, (and the payments on account of drawback having been diminished by the embargo,) have been greater than those of any preceding year, and amounted to $17,952,419 90 And the specie in the Treasury on the 1st October, 1807, amounted to Making together 8,529,573 08 $26,481,992 98 The disbursements during the same period have amounted to the sum of $12,635,275 46, consisting of the following items: Civil department and miscellaneous ex $1,258,967 18 406,499 37 3,023,759 55 2,257,064 47 Leaving a balance in the Treasury, on the 30th September, 1808, of 5,688,984 89 12,635,275 46 13,846,717 52 $26,481,992 98 The cash in the hands of collectors and receivers, and the outstanding revenue bonds, which will almost altogether fall due prior to the 1st of January, 1810, may, after deducting the debentures yet unpaid, and the expenses of collection, be estimated to have amounted, on the 30th September, 1808, $10,500,000 to Making, together with the balance in the Treasury on that day, of An aggregate of Although the expenses of the present quarter cannot at present be precisely ascertained, they will not, including the reimbursement of 5,376,000 dollars, on account of the principal of the public debt, exceed Leaving on the 1st day of January, 1809, a sum of 13,846,000 $24,346,000 8,346,000 $16,000,000 Sixteen millions of dollars, in cash or bonds, payable during the year 180), and applicable to the expenses of that year. It is presumed that the receipts arising from importations and payments for lands, subsequent to the 30th September, 1808, will not be greater than the deductions on account of bad debts, and of the extension of credit on certain articles. The expenses of the year 1809 would, according to the appropriations already made, and to the usual annual estimates, amount to thirteen millions of dollars, consisting of the following items: 1. Civil list and miscellaneous expenses 2. Foreign intercourse 3. Grants by Congress, and other miscellaneous unforeseen $900,000 200,000 150,000 2,736,000 1,014,000 8,000,000 $13,000,000 Leaving a surplus of only three millions of dollars for defraying all the expenses for fortifications, military stores, increase of the army and navy, or otherwise incident to a state of actual war, or of preparations for war. The annual appropriation on account of the public debt, amounting to eight millions, and the interest for the year 1809, being less than three millions of dollars; an authority to borrow five millions would only create a new debt equal to the principal of old debt reimbursed during that year, and appears sufficient to provide for any deficiency arising from the extraordinary expenses which may be thus authorized by Congress. It thus appears, that, notwithstanding the general warfare of the belligerant powers against neutral nations, and the consequent suspension of commerce which took place in the latter end of the year 1807, and notwithstanding the increased rate of expenditure naturally arising from that state of things, the ordinary revenue will have been sufficient to defray all the expenses of the years 1808 and 1809, including, for 1808, a reimbursement of debt exceeding six millions of dollars, and without making any addition to that debt in 1809. The measures necessary to be adopted, in order to make a timely provision for the service of the ensuing years, depend on the course which the United States will pursue in relation to foreign aggressions. And that being yet unascertained, it becomes necessary to examine the several alternatives left to the choice of Congress. Either the navigation of the ocean will be abandoned by the United States, or it will be resumed. The first supposition is that of a continuance of the embargo of the vessels of the United States, and admits of two alternatives. 1. Either a provision generally forbidding exportations, may continue to make part of the system; in which case, importations, whether expressly interdicted or not, must, for want of the means of payment, be also discontinued; 2. Or, exportations and corresponding importations may be permitted in foreign vessels. The second supposition also offers two, and only two, alternatives. It may indeed be admitted that the decrees of France can be enforced only in her own territories, and in those of her allies; that, however efficient in preventing any commerce between the United States and herself, those decrees cannot materially affect that between her enemies and the United States; and may, therefore, in that respect, be disregarded. But Great Britain having the means of enforcing her orders on the ocean, the navigation of that element cannot be resumed without encountering those orders; and they must either be submitted to or resisted. There can be no middle way between the two courses. 3. Either America must accept the portion of commerce allotted to her by the British edicts, and abandon all that is forbidden-and it is not material whether this be done by legal provisions, limiting the commerce of the United States to the permitted places--or by acquiescing in the capture of vessels stepping beyond the prescribed bounds. 4. Or, the nation must oppose force to the execution of the orders of England; and this, however done, and by whatever name called, will be war. Of those four alternatives, the second and third differ neither in principle nor in their effect on the revenue. As both plans consist in permitting partial exportations and importations, it must be acknowledged that, objectionable as that course may be in other respects, if considered merely in relation to the fiscal concerns of the Union, it will, for the moment, be attended with less difficulties than either the present system or war. For, however narrow the limits to which, on that plan, the exportations and importations of the United States may be reduced, yet there will still be some commerce, and some revenue arising from commerce. And as, in pursuing that humble path, means of defence will become unnecessary, as there will be no occasion for either an army or a navy, it is believed that there would be no difficulty in reducing the public expenditure to a rate corresponding with the fragments of impost which might still be collected. If that course be adopted, no other provision seems necessary than an immediate reduction of expenses. The system now in force, and war, however dissimilar in some respects, are both considered as resistance. Nor is it believed that their effect on national wealth and public revenue wonld be materially different. In either case, a portion, and a portion only, of the national industry and capital heretofore employed in the production, transportation, and exchange of agricultural products, or in the foreign carrying trade, can immediately be diverted to other |
