Thirdly. The amount of the said five thousand shares, namely, two millions of dollars, shall be payable in moieties; one moiety upon the day of the execution of these presents, the other moiety on the first day of July next. Fourthly. The said corporation, upon the payment of each of the said moieties, shall forthwith lend, advance, and pay, a sum equal to such moiety to the United States, to bear an interest at the rate of six per centum per annum, subject to the terms of reimbursement in the act aforesaid specified. Fifthly. As the dividend upon the said first moiety will begin to accrue on the said 20th day of December last past, the interest upon the loan which shall be first made, pursuant to the article next preceding, that is to say, upon the principal sum of one million of dollars, shall begin to accrue upon the said 20th day of December last, and the interest upon the said second loan of one million of dollars, shall begin to accrue upon the said first day of July next. Sixthly. The interest upon the said loans shall be payable and paid half-yearly, that is to say, the first half-yearly payment shall be made on the first day of July next, and thereafter a halfyearly payment shall be made on the first days of January and July, in each year, until the final reimbursement of the said. loans. In testimony whereof, the said Secretary hath hereunto subscribed his hand, and caused to be affixed the seal of the Treasury of the United States, and the said President, Directors, and Company, have hereunto caused to be affixed the seal of the said corporation. Done at Philadelphia, the twenty-fifth day of June, in the year one thousand seven hundred and ninety-two. ALEXANDER HAMILTON, Secretary of the Treasury. THOS. WILLING, President. Attest, JOHN KEAN, Cashier. SIR: PUBLIC CREDIT. Communicated to the Senate, January 16 and 21, 1795. TREASURY DEPARTMENT, January 16th, 1795. I beg leave, through you, to inform the Senate, that, pursuant to the second section of the act establishing the Treasury Department, which expressly makes it the duty of the Secretary of the Treasury, "to digest and prepare plans for the improvement and management of the revenue, and for the support of public credit," I have digested and prepared a plan, on the basis of the actual revenues, for the further support of public credit, which is ready for communication to the Senate. This plan embraces a further provision for the subscribed debt; a provision for converting, with the consent of the creditors, the foreign into the domestic debt; a provision for augmenting the sinking fund, so as to render it commensurate with the entire debt of the United States; suggestions for giving effect to the act of the last session, granting a million of dollars for the purposes of foreign intercourse; with some auxiliary propositions. With perfect respect, I have the honor to be, Sir, your obedient servant, ALEXANDER HAMILTON, Secretary of the Treasury. To the Vice President of the United States and SIR: President of the Senate. TREASURY DEPARTMENT, January 20, 1795. Agreeably to the order of the Senate, I have the honor to transmit the plan for the support of public credit, announced in my letter of the 16th instant, together with sundry statements connected with it; and to be Your most obedient and humble servant, To the Vice President of the United States and President of the Senate. . The Secretary of the Treasury respectfully makes the following report to the Senate: The President of the United States, with that provident concern for the public welfare which characteriezs all his conduct, was pleased, in his speech to the two Houses of Congress, at the opening of the present session, to invite their attention to the adoption of a definitive plan for the redemption of the public debt, and to the consummation of whatsoever may remain unfinished of our system of public credit, in order to place that credit, as far as may be practicable, on grounds which cannot be disturbed, and to prevent that progressive accumulation of debt, which must ultimately endanger all government. It was, at the same time, very justly intimated, that the period which has elapsed since the commencement of our fiscal measures (now more than four years), has so far developed our resources, as to open the way to the important work. And it is matter of solid consolation, that the result, presenting a state of our finances, prosperous beyond expectation, solicits the public councils to enter, with zeal and decision, upon measures commensurate with the greatness of the interests to be promoted. Under the influence of this conviction, in conformity with the suggestions of the President, and pursuant to the duty which the constitution of the department, as by law established, enjoins upon the Secretary of the Treasury, he has employed himself in digesting and preparing the materials of a plan for the attainment of the invaluable ends which are recommended. And he now respectfully submits them to the consideration of Congress. Towards a clear and distinct conception of the means necessary to the accomplishment of those ends, it will be useful, in the first place, to review what has been heretofore done. This will be presented under three heads: I. The revenues which have been established; II. The provisions for funding the debt, and for the payment of interest upon it; III. The provisions for reimbursing and extinguishing the debt. I. The revenues which have been established appear in the following acts: 1st. "An act for laying a duty on goods, wares, and merchandises, imported into the United States," passed June the 1st, 1789. This act, as its title imports, lays various specific and ad valorem rates on all articles (with exception of a few useful to agriculture and manufactures) imported from foreign countries. The lowest ad valorem rate is five per cent., with a discount of ten per cent. in favor of our own bottoms. The duration assigned these duties was the end of the session of Congress next succeeding the first day of June, 1796. 2d. "An act imposing duties on tonnage," passed July 20, 1789. This act lays various rates of duty on the tonnage of ships and vessels entered in the United States from foreign countries, and, in certain cases, in one part of the United States from another. Its duration was indefinite, no limit having been assigned. 3d. "An act imposing duties on the tonnage of ships and vessels," passed July 20, 1790. This act is a substitute for the one last mentioned, preserving the same rates of duty, but applying them, in some instances, differently. It is, like the former, of indefinite duration. 4th. "An act making further provision for the payment of the debts of the United States," passed August 10, 1790. This act repeals, after the last of December, 1790, the duties on imported articles, laid by the act above cited, and substitutes new, and generally increased, rates, specific and ad valorem. The lowest ad valorem rate in this, as in the former act, is five per cent.; but the number of articles to which it applies, is much narrowed; and, instead of a discount in favor of our own bottoms, an addition of ten per cent. is made, to the disadvantage of foreign bottoms. The number of free articles is somewhat extended, in further encouragement of agriculture and manufactures. It is declared, that the duties laid by this act shall continue till the debts and purposes for which they are appropriated shall be satisfied; reserving, however, a right to Congress to substitute other duties or taxes of equal value. 5th. "An act to incorporate the subscribers to the Bank of the United States," passed the 25th of February, 1791. The second section of this act authorizes the President to cause a subscription to be made to the stock of the bank, on account of the United States, to the amount of two millions of dollars; and, with a view to the accomplishment of that object, to borrow of the bank two millions of dollars, to be reimbursed in ten equal yearly instalments. The difference between the interest payable on the loan, and the dividends on the stock, constitutes an item of annual income to the United States. It is unappropriated. 6th. "An act repealing, after the last day of June next, the duties heretofore laid upon distilled spirits imported from abroad, and laying others in their stead; and, also, upon spirits distilled within the United States, and for appropriating the same," passed the 3d of March, 1791. This act, in conformity with its title, repeals, after June, 1791, the duties on imported spirits, laid by the act of the 10th of August, 1790, and establishes, in lieu of them, higher rates, namely, from twenty to forty cents per gallon, according to proof. It also lays duties, to commence at the same time, upon spirits distilled within the United States; namely, on those from foreign materials, from eleven to thirty cents, according to proof; on those from domestic materials, if distilled in cities, towns, or villages, from nine to twenty-five cents per gallon, according to proof; if distilled in other places, it imposes a yearly rate of sixty cents per gallon of the capacity of each still, with an option to the distiller to keep and render an account of the produce of his still, and to pay nine cents per gallon of the quantity of spirits distilled therein. These duties are appropriated, primarily, in the same manner, and to the same purposes, as those laid on imported articles by the act of the 10th August, 1790, and are to continue for the same time, with |
