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State of the Finances.

e sum of $12,000,000, with a view, 1st, to absorb cessively, at 95, 96, 97, and 98 per cent., and portion of the Treasury note debt; 2d, to obtain finally at par. In the city of Baltimore the money nds for paying the unsubscribed arrearages of subscriptions bave been at 95 and 964 per. ceni. at debt; and, ihe 3d, to aid the Treasury with a In the city of Philadelphia the money subscrippply of the local currencies of differeni places, tions have been entirely at 95 per ceni. The some proportion to the probable amout of the price was raised at the Treasury from 95 to 98 cal demands.

per cent. on the 18th of June, (subject, of course, The offers to subscribe to the loan prior to the io all unexecuted subscriptions previously accepIth of April, 1815, placed (as it were proper 10 ted or authorized,) and since that time conside

ace) money and Treasury notes upon the same rable offers have been received at 95 and 96 per oting; but the offers varied essentially in the cent., but none have been received at the increased ırms and cooditious that were annexed io tbem ; rate of 98 per cent. The subscriptions, payable ad, in point of fact, no direct offer was made 10 in Treasury notes, have been made in ali places -Ibscribe al a higher rate than 89 per cent., while at the same rale of 95 per cent. A general abome of the offers were made at a rate even lower stract of the state of the loan may, therefore, be aan 75 per cent. Upon this experiment, there reduced to the following form : bre, it was seen at once that the new situation of In the District of Columbia the subscriptions have de Treasury required a new course of proceed amountedig, and that neither the justice due to the equal 1. In money, to the sum of $2,282,037 38 ghts of the public creditor, nor a fair estimate 2. la Treasury notes, to 257,276 65 the value of the public property, nor an hono

2,539,314 03 able regard for the public credit, would permit In Baltimore the subscriphe loan to assume the shape and character of a

tions have amounted cramble, subservient to the speculations, which 1. In money, to - $1,994,818 50 reale what is called a market price, and shifting 2. Io Treasury notes, lo 608,661 90 in every town and village of every Slate, accord

2,603,480 40 og to ihe arbitrary variations of what is called In Philadelphia the subbe difference of exchange.

scriptions amounted1. In money, to

$1,845,000 00 · In this view of the subject all the offers of sub

2. In Treasury notes, to · 1,260,568 69 criptions to the loan, made in the first instance, were declined; but it was declared, at the same In New York the sub

3,105,568 69 time, that offers at the rate of 95 per cent, would

scriptions have amount. be accepted. The rate thus proposed was adopt

eded upon a consideration of the value of the stock, 1. In money, to

601 44 of the equitable as well as legal claim of the bold. 2. In Treasury notes, to 658,371 61 ers of Treasury potes, and of the real condition

658,973 05 of the public credit. The object of the loan be. In Rhode Island the subscriptions have ing (as already stated) to absorb a portion of the amounted, in Treasury notes, to 132,020 69 Treasury note debt, and to acquire a sufficiency In Massachusetts the subscriptions have of local currency for local purposes, the price of amounted, in Treasury notes, to 97,301 32 the stock at the Treasury was, of course, inde. In New Hampshire the subscriptions have pendent of the daily up and down prices of the amounted, in Treasury notes, to 62,386 20 various stock markets in the Union, and could In North Carolina the subscriptions bave only be effected by the progress towards the at

amounted, in Treasury notes, to 95,000 00 tainment of those objects. Thus, while the wants of the Treasury were sufficiently supplied, offers

$9,284,044 38 to subscribe were freely accepted. aod ibe parties were sometimes authorized and invited to increase Having thus absorbed a portion of the Treathe amount of their offers; but, where local funds sary note debt, and deeming the Treasury to be had so accumulated as to approach the probable possessed of a sufficient supply of the local curamount of the local demands, the price of the rency of the places at which ihe Treasury notes, stock was raised at the Treasury; and when the unsubscribed and in arrears, were payable by law, accumulation was deemed adequate to the whole except in the cities of New York and Boston, the amount of the local demands, the loan was closed. Secretary of the Treasury proceeded to assign

The policy of the course pursued at the Trea- foods for the payment of the Treasury notes, and sury was soon demonstrated. Offers of subscrip- to give notice thereof in the form of the annexed tion to the loan, at the rate of 95 per cent., paya- copies, (marked, respectively, H and I,) in pur. ble in Treasury notes or ia money, were present. suance of the act of Congress, passed on the 3d ed to a large amount soon after the rule of the of March, 1815. As a sufficient supply of the

Treasury was declared; and the annexed lable, local currencies of Busion and New York had not s marked G, will exbibit the progressive and actual been obtained, the overture was made in the same

state of all the subscriptions to the 30th of Sep-notice to discharge the Treasury notes payable tember last.

in those cities, and in arrears, by acceptiog ihen In the District of Columbia the money sub- in subscription to the loan, at the rate of 95 per seriptions (including the subscription of certain cepl., by exchanging them for other Treasury liquidated claims upon the Treasury) were, suc-notes, in wbich ibe interest due should be inclu

State of the Finances.

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ded as principal, or by giving drafts for the amount particular year in which the appropriations were upon any of the banks in wbich the Government made by law. Thus possessed funds. This overture is still open to the grose amount of the appropriations for 1814, inihe consideration and acceptance of the holders cluding the aggregate of the balances of the approof the Treasury notes in question, and has been priations for the year 1813, amounted to the sun accepted, in the shape of subscriptions to the loan, of

- $55,978,464 20 to a considerable extent. Since the 30ch of Sep- Ofthis there was paid, on or before the lember these amount, including some subscrip 31st of December, 1814, the sun tions, the details of which have not yet been con of

$38,028,230 32 templated, to more than $2,000,000.

And, on the 1st of

Jan. 1815, there of the transfer of balances of appropriations and was carried to sur. of revenue from 1814 to 1815.

plus fund the sum In the administration of the finances it has been


592,309 99 the practice to consider the demands and the supplies of each year as distinct subjects for legisla- Leaving as a general tive provision, independent of the balances of ap

balance of appropropriations or of revenue existing at the close of

priations of 1814

38,620,540 31 the preceding years. The same course will now be pursued, but with a few explanatary remarks.

$17,357,923 * The annual appropriations have never been entirely absorbed during the year for which they of the demands on the Treasury, for 1815. were made ; and the credit given by law for

pay. ments id every branch of the revenue, necessarily

The demands authorized by acts of appropriaintroduces a discrimination between the amount of tion during the year 1815, (exclusively of certaio duties which accrues within the year, as a debt indefinite appropriations, the amount of which is to the Government, and the amount which is paid not yet ascertained,) were the following: within the year, as money into the Treasury. The For civil, diplomatic, and miscellaneous expenses, be annual appropriations, however, are not charged sides the unascertained product of fines, penalties, upon the revenue of the year specifically in which and forfeitures, assigned to defray the charges of they are made; and, in point of fact, they are courts, the sum of .

- $3,080,656 22 satisfied whenever demanded, out of any unappro- For military expenses, including those priated money in the Treasury, without reference of the Indian Department, and the to the time when the revenue accrued, or when permanent appropriation of $200,000 the money was actually received at ihe Trea for arming and equipping the militia,

the sum of sury.

5,618,790 41 The inconvenience of continuing appropria- For naval expenses, including the antions in force, which were liable to be drawn from

nual appropriation of $200,000 for the Treasury during any indefinite period, induced

the purchase of timber

5,233,022 00 Congress to enact, in the year 1795, that any ap. The interest in the debt contracted be

For the public debt, to wit: propriations (except permanent appropriations for fore the war

1,900,000 00 ihe interest of the funded debt, or appropriations The interest on the debt contracted since for the payment of loans and the accruing inter the war, (including the loan of 1815, est, for the Sinking Fund, aod for purposes which and excluding the interest of Treasspecially require, by law, a longer duration) re

ury notes)

3,560,000 maining unexpended for more than two years The interest of 5 2-5 per cent. per ann., after the expiration of the calendar year in which upon Treasury notes outstanding on the act of appropriation was passed should cease the 1st of January, 1815, including and determine ; and that the unexpended sum notes due in 1814, and not paid, (the should be carried to an account on the books of principal being then $10,646,480,) the Treasury, to be denominated "the Surplus

the sum of

575,000 00 Fund." By the operation of this provision, no The annual reimbursement of the prin. ordinary appropriation can now survive the spe.

cipal of of the old six per cent and cified period of two years; and, notwithstanding the principal of Treasury notes paya

1,690,000 the formal designation of a particular account in The principal of Treasury notes payawhich the entry shall be made, the sum disengaged by a determination of each appropriation, becomes the principal of Treasury notes paya

1815, but not then paid, the sum of 2,799,200 00 again an undistinguishable part of the public trea

ble in 1815, and the 1st of January, sure, which is subject to the future disposition of the Legislature.

1816, the sum of

7,847,490 00

The principal of temporary loans payaWith these remarks it will be useful, for the

ble in 1814, but not then paid

500,000 00 purpose of general information, to exhibit the gross amount of the balances of the appropriations The amount of the appropriations and for the year 1814, trapsferred to the year 1815, of demands for the public debt for without entering into a comparative detail of the 1815, being the sum of

$32,703,948 63 appropriations and of the revenues during the

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State of the Finances.

year 1815.

the year

The total amount, therefore, demanda

Treasury note act of Feb. ble at the Treasury during the year

24, 1815, (exclusive of 1815, was

$50,061,871 95 the re-issues authorized
by this act)

25,000,000 Consisting of appropriations made prior

43,952,800 00 to that year, and unsatisfied at its commencement, amounting to $17,357,923.89 Making together

$112,629,937 63 And of appropriations and demands on

account of the public debt, made and arising during the year 1815, amount

This great apparent surplus of ways and means ing to

- 32,703,948 06 within the power of the Treasury arose, in part,

from the great increase in the amount of the cusMaking together

$50,061,871 95 toms accruing in the year 1815, which, instead

of $4,000,000, the amount estimated prior to the Of the Ways and Means of the Treasury for the peace, will probably in consequence of that event

amount to the sum of $25,000,000, as here stated. These ways and means may be considered in a

A great portion also of the sums authorized to be two-fold aspect: 1. As to the ways and means borrowed, or raised upon Treasury notes, it was placed by the laws within the power of the Trea- evident could not be obtained or raised within the sury; and, 2. The amount capable of being real- year; and the several successive acts by which ized,'or made actually available by the Treasury, finally accumulative, were actually the results of

the authority was given, although they were pomduriog the year.

Under the first view the ways and means.con- attempts to vary or modify this authority in such sisted

a way as to render it more easy or more effectual

in its execution. 1. Of the cash in the Treasury at the

The second view of the ways and means for commencement of the year, which amounted to

1815 exhibits the amount actually real- $1,526,998 63

ized and received into the Treasury during the 2. Of the outstanding revenue, which accrued prior to the year 1815, and

year. As the year is not yet terminated, this can remained unpaid at its commence

only be given by way of estimate. The result ment, estimated, exclusive of the sums

will probably not differ materially from the foldue for public lands, at about

4,600,000 00lowing: 3. Of the revenue accruing in the year

1. Cash in the Treasury at the com. 1815, estimated at $38,850,000, viz:

mencement of the

$1,526,998 63 Customs $25,000,000

2. Receipts from revenue, including that Direct tax, net product - 5,400,000

which was outstanding at the com. Internal duties, net pro

mencement of the year, viz:
duct -


$$8,000,000 Public lands. 1,000,000 Direct tax

2,200,000 Postage and other inci

Internal duties

4,700,000 dental receipts · 450,000

Public lands

1,000,000 38,850,000 00 Postage and other inci4. Of the unexecuted authority to bor

dental receipts - 450,000 row money and issue Treasury notes,

16,350,000.00 conferred by acts of Congress, passed

3. Receipts from loans and Treasury prior to the year 1815, viz:

notes, viz: Loans
The loan act of March 14,

Under the act of March

14, 181%

The loan act of March 24,

Under the act of Novem-
1814 -

ber 15, 1814

950,000 00 The loan act of Novem

Under the act of March
ber 15, 1814

3, 1815

9,284,044 38
12,327,419 00 Under the act of March
Treasury note act of Mar.

3, 1815, (temporary) 650,000 00
4, 1814
- $2,772,720

Under the act of Feb'y
Treasury note act of De-

13, 1815, (temporary) 100,000 00
cember 26, 1814 8,600,000

11,372,720.00 Amount actually borrowed to the 30th 6. Of the authority to borrow money and

September, 1815, per statements anissue Treasury notes, conferred by

nexed, marked G and K acts of Congress, passed in the year

$11,034,044 38 1815, viz:

Amount estimated to be

borrowed from Oct'r I
The loan act of March 3,

to December 31, 1815 3,000,000.00
The loan act of Feb'y 13,

14,034,044 38 1815, (for public build

Treasury Notes.-Amount issued prior inge in Washington) - 500,000

to the 1st October, 1815.

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that purpose.

Slate of the Finances. 1. Treasury notes bearing interest :

of revenue and expenditure for that year cannot Under the act of March

be reduced by the scale of a Peace Establishment. 4, 1814 - $2,772,720

The arrearages in the War and Navy Depart. Under the act of Dec. 26,

ments are, generally, the outstanding balance of 1814. 8,318,400

the floating public debt, including Treasury notes Under the act of Febru

and temporary loans, and must be satisfied before ary 24, 1815 694,600

a permanent and uniform arrangement of the Per statement annexed,

finances can be effected; but it is believed ibat marked L. $11,785,720

the period of a single year will be sufficient for 2. Small Treasury notes not bearing interest, under act

It is also proper to premise, that, although the of February 24, 1815.

estimates of the demands on the Treasury for Amount issued and re

1816 may be satisfactorily made, there is no setissued, per statement an

tled ground upon which estimates of the ways pexed, marked E. 4,152,850

and means can be confidently formed. The ea

tire system of external and internal taxation mast $15,938,570

necessarily be revised during the present session Ant. estimated to be issued

of Congress, and the sources as well as the prodand re-issued, from Oct. 1

uct of the public revenue can only be ascertained to December 31, 1815 - 1,000,000

from the result of the legislative deliberations 16,938,570 00 In order however to obviare this difficulty, as far

as it is practicable, distinct statements will be Making the total amount estimated to

presented for 1816-1. Of the probable demands be actually received into the Treasury during the year 1815

of the Treasury; 2. Of the revenue, estiniated ac$48,849,613 01

cording to the laws now in force; and, 3. Of ibe The application of the moneys actually received revenue, estimated according to the modificainto the Treasury, during the year 1815, will be tions, which will be respectfully submitted. as follows: To ihe 30th September the payments 1. Of the probable demands on the Treasury. bave amounted to the followiog sums nearly; - The amount of civil, diplomatic, and misthe accounts not being yet made up, the precise cellaneous expenses, is estimated at the amount cannot be given.

sum of

$1,800,000 For civil, diplomatic, and miscellaneous

The amount of military expenses is esti$2,537,000 00

mated at the sum of expenses

14,549,246 For military service

- 15,190,144 71 For the Military EstablishFor naval service 7,050,000 25 ment of 1816

$5,112,159 Por public debt, (exclusive of the sum

For the arrearages of 1815, of $300,000, repaid by the Commis

beyond the amount of the sioner of Loans for Georgia) 8,909,178 22 appropriations

9,437,087 $33,686,323 18

Making together $14,549,246 During the fourth quarter of the year the payments are estimated to amount

The amount of the naval expenses (supto the following sums, viz:

posing them to be reduced, on the Peace For civil, diplomatic, and mis

Establishment, to one-half the amount cellaneous expenses $500,000

appropriated for 1816, and adding the For naval service 1,500,000

annual appropriation of $200,000 for For public debt to the 1st of

the purchase of timber) is estimated at January, 1816, inclusive - 3,000,000

the sum of

2,716,610 5,000,000 00 The amount of the payments required on

account of the public debt is estimated Making together $38,686,323 18 at the sum of

23,818,513 As the receipts into the Treasury during the year have been estimated at 48,849,613 01


For the interest and annual reimburseThe sum left in the Treasury at the end

ment of the principal of the funded debt of the year will be $10,163,289 83 prior to the war


For the interest on the funded And will consist principally of Treasury notes, paid

debt created since the war, on account of the revenue and of loans.

estimated on a capital of Of the estimates of the Public Revenues and Ex


4,200,000 penditures for 1816.

For the balance of principal

and interest on Treasury In the consideration of this subject, it is pro

notes of every denomination per to premise, ibat the revenue of 1816 must be

now due or payable in 1815 charged with the payment of a considerable and 1816, or estimated to amount of the uoliquidated debts incurred during be paid in those years, by the war; and, consequently, that the proportions being received for duties

State of the Finances.

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and taxes, as set forth in the

From customs

$13,000,000 annexed table, marked L - 15,458,513

internal duties

7,000,000 For the amount of temporary

direct tax, (net produce to the Trealoans due to the State Bank


5,600,000 of Boston, ($500,000,) and

sales of public lands

1,000,000 the Mechanics' Bank of

postage and incidental receipts 400,000 New York, ($200,000) 700,000

$27,000,000 Making together - $23,818,513

The sums actually receivable into the TreasFrom this aggregate of the de

ury, during the year, are estimated as follows: mands for 1816, the charges

From customs

$20,000,000 of a temporary nature being

internal duties

6,500,000 deducted, to wit: deduct the

direct tax, including arrears of 1815 8,500,000 amount of the arrearages

the sales of public lands

1,000,000 for the military services of

postage and incidental receipts 400,000 1815

- $9,437,087 And the amount of the float

$36,400,000 ing debt to be liquidated in

If to this be added the probable amount 1816 16,158,513

of money in the Treasury, at the com25,595,600 mencement of the year 1816, which

may be estimated, exclusive of TreasThere will remain as the probable annual

ury notes paid in, previously to that expenditure of the Peace Establish

time, on account of revenue and of ment, independent of any addition to

loans, at the sum of

3,000,000 the Sinking Fund, the sum of - $17,288,669

The effective ways and means of 1816

will produce, in the whole, the sum of 39,400,000 2. Of the revenue for 1816, estimated according to But as the demands upon the Treasury, the laws now in force.

for the same year, will amount, as By the laws now in force the revenue arising

above stated, to •

42,884,269 fror customs, during the year 1816, will be alfected in the following manner: The present There will be left a deficit, to be supplied rates of duties continue until the 18th of Febru

by means other than the revenue, of ary, 1816, when the duty on salt imported will

the sum of

$3,484,269 cease, and the rates of duties on merchandise of every description, imported in American vessels

, 3. Of the revenue for 1816, estimated according to the will fall to one-half of the existing amount, with

modifications which will be respectfully submitted. the exception of certain manufactured articles,

From the review of the financial measures of being of ihe same kiods as the manufactured arti: the Government, in reference to the recent state cles on which internal duties have been imposed; of war, which constitutes the first part of the the duties on the imported articles continuing at present report, it appears that the almost entire the existing rates, so long as the existing internal failure of ihe customs, or duties on importations, duties shall

be continued upon the corresponding and the increasing necessities of the Treasury, articles of domestic manufacture. On the 18th rendered it necessary to seek for pecuniary supo of February the extra duties on merchandise im- plies in a system of internal duties; but both in ported in foreign vessels, which is now 15per respect to the subjects of taxation, and to the cent. on the amount of the duty in American amount of the several taxes, the return of peace vessels, will fall to 10 per cent. on that amount, has always been contemplated as a period for and the tondage duty on foreign vessels, which revision and relief. In the fulfilment of that is now $2 per ton, will fall to fifty cents per ton. policy, a reduction of the direct tax; a disconThe extra duty is, also, liable to be affected by iinuance of taxes which, upon trial, have proved the operation of the act for abolishing all dis- unproductive as well as inconvenient; and, above criminating duties upon a basis of natural reci- all, the exoneration of domestic manufactures procity.

from every charge that can obstruct or retard By the laws now in force the revenue arising their progress, seem to be the objects that particfrom interval duties will be affected in the follow. ularly invite the legislative attention. There jog manner: The duties on bank notes, on notes will still remain, however, a sufficient scope for discounted by banks, and bills of exchange, the operation of a permanent system of internal (commonly called the stamp duties,) and the duties upon those principles of national policy duty on refined sugar, will cease on the 18th of which have already been respectfully suggested. February, 1816. All the other internal duties, As an equivalent for the diminution of the together with the direct tax, and the increased revenue, by the contemplated abolition or reducrates of postage, will continue.

tion of some of the duties and taxes, and in obUnder these circumstances the revenue which servance of the public faith which is pledged, in will accrue to the United States, during the year the case of such abolition or reduction, to provide 1816, is estimated as follows:

and substitute other duties and taxes equally pro14th Con. Ist SESS.-52

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