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LETTER
Fr .m *he Secretary of the Treafnry, enclo-
Jing a report prepared in obedience to the
act fupplementnry to the ad, mtitled
,e An ad to ejiabhfh the 'Treafury De
triment December 5, 1806, Re-
Jerreei to the committee of Way* & Means,
Tr easurt Department, Dec,s, 1806.
•Sir,
I nave {he htaor to enclose a report, pie
psted in obedience to the ait entitled “ An
act to eftahlfth die Treasury Dspartment,"
1 ha •/ c :be honor to be,
Very icfpcftfully Sir,
Your obedient fervent,
ALB HR r GALLATIN.
Ihe honorable
V.or Speaker of the House of Reprefenla
tvi.es,
* REPORT.
In obedience to the directions of the ad, fup
phmaitary to the ad, mtitled i( An ad
to ejiabljh the *1 reafury Department,”
the Secretary of the ¥ reafury refpedfully
fkhmits the following
REPORT and ESTIMATES ; i
REVENUE ako RECEIPTS,
The nett revenue arising from duties on
merchtmdife and tonnage which accrued diu
ring the year 1804-, amounted alter deduc
ting that portion which arefe from the ad
di;tonal duties, constituting the Mcditera
near, fond, to Dolls. 12,673,458
And that which accrued daring the year
1805, amounted, after making a similar
Adoption, as will appear by the statement
A) to 13,083,823
It is afeertainrd that the nett revenue
hich has accrued during the three firft
natters of the yeas 1806, exceeds that of
i«e corrcfponding quarter* of the year 1895 »
and that branch of the revenue may, exciu
ftv’dy of the Mediterranean fund, be fafcly
estimated tor the present at thirteen millions
el dollars.
The statement (P.) exhibits in detail the
fcveral fptcies of merchandise, and other
L>' trees, trom which that revenue was col
lected, during the year 1805.
It appears by the statement (C) that the
Tales of the public lands, have, during the
year ending on the 30-h September, 1806,
exceeded, 473.00030168. The atlual pay
ments by puntiafcrs hare, during that peri,
od, amounted to 850,000 dollars, of which
(urn near 700,00 c dollaes have been paid
in I'pecie, and the reiidue in flock of the
public dept. The specie receipts from that
foorcc may, after deducing charges and the
» five per cent, re Ter ml tor roads, be estima
ted for the ensuing year at five hundred
thuufand dollars.
'The receipts arifiug from the permanent
revenue of the United States, may there,
foie, without including the arrears of direst
tax and internal revenues, the duties ?n post
age avid other incidental branch**, be com.
puted for the year 1807, at thirteen mil
lions and five hundred thoufani dollars,
1 j, 500,000
And the payments into tht Treasury,
duritig the fame year, on account of the
temporary duties, constituting the Mediter
ranean fund, arc estimated at one million
of Jolla, s, 1,000,000
14.500.000
Making in the whale an aggregate of
fpurtten millions and live hundred thousand
dollars, ♦
EXPENDITURES.
The permanent expences are estimated at
11,400,000 dollars, and consist of the fol
lowing items, via.
1. The annual appropriation of eight mil
lion? of dollars for the payment of the
principal and interest of the public debt,
of which Turn not more than 3,600,000
dollars will for the year ISO7, be applica
ble to the payment of interest, 5,0u0.000
z. For the civil department, and all do
tncftic expences of a civil nature, inclu
ding invalid pensions, th* light house,
and mint eftab]i(hmcnts, the expenses of
surveying public lands, the fourth in
ftalment of the loan due to Maryland,
and a ftm of 130,000 dollars to meet
such mi fee I lane jus appropriations, not in*,
eluded tn the eftiraates, as may be made
bv Congress, 1,150,000
3. For ex pence* incident to the imetcourfe
with foreign nations, including the per
manent appropriation for Algiers,
zoo,ooo
4. For the military and Indian depart
tneuts, including trading houses, and
the permanent appropriations ror certain
Indian Fri. es, 1,150,000
5. For the naval cftablillnment, 900,900
11.400.000
The extraordinary demand* for’the year j
1807, already auttinrifed by law, amount j
to two miiiions seven hundred thoufimd
dollars, viz.
The balance of the American claim* af
iumed by the French convention, which
remained unpaid on the 30 :h of Sept, last,
amounting to 700,000
And the two millions of dollars appropria
ted by the aft of 13th February, 1806,
making provision for defraying any ex
traordtrtaiy expences attending the inter
course between the United State* and for
cign nations, z,00*,000
•
2,700,000
14,100,009
4-
Making altogether fourteen milllocs one
hundred thoufund dollars. From which it
appears, that belides a surplus ot four hun
dred thoafand dollars, the xcfourccs of the
erfuing year will be fufficienr to meet the
current demands ; and to discharge, with
out recurring to the loan authorifed by the
last mentioned aft, the extraordinary ap
propriation of two millions for foreign in
tercourse.
It is here proper to date, that under the
authority given by that aft, a credit of one
million of dollars has been opened in Hoi
land to the sainiftcts of the United States
appointed to treat with Spain. Should the
credit be tffed, the million will be charged
to the proper appropriation j but although
the balance chargeable to the expenditure
of the year 1807, * n that case be oidy
one, in lie ad of two millions, as stated in
the above eftimatc, the general result will
he the fame ; as it will then be ncceffary
to replace in Holland ihe million thus era
ployed, for a different objeft than the pay
ment or the foreign debt, to which it how
hands charged.
The balance in the Trcafury amounted,
on the 30th day of September, 1805, to
dolls. 4,558,664 2 cents, and on the
joih day of September, 180 6, to dollars
5,496,969 7f cents. But it will, on ac
eount ut tne heavy payments to be made in
the ccurfs of ih 1 month, tor ihe public
debt, he probably reduced on the Ift Jan
uary, 1807, to a sum not much exceeding
tour millions of dollars,
PUBLIC DEBT.
The annexed note of the proceedings of
the comrwiffioners of the Sinking Fund, mar
ked (K) (hews that a considerable portion
ot the annual appropriation of g millons of
dollars was applicable this year to the re
imbursement or purchases of the dorncflic
debt: No more than 17,517 dollars and
61 cents, were offered at maiket price, and
accordingly purchased. The reimburse.
mem ot the Navy 6 per cent, Hock, amoen.
ting to yi 1,700 dollars was therefore effec
ted on the 301 b day of September last, and
that ot the five and half per cent, stock,
amounting 101,847,500 dollais, is adver.
lift’d for the lull day of January next. The
pay mciu of the last mentioned sum will be
made by the Trcafury in the courle of this
month. Although a more than usual por
tion of the appropriation for the calendar
year 1806, falls, tor that reason, on the
last quarter, it appears by the liatement (D)
that the payments on account of the princi
pal of the public debt, have, during the
year ending on the 30th day of September
1 £O6, amounted to near 3,250,000 dollars.
It appears by the fame ftatensent, that
* the payments on account of (he principal
of the public debt, have, from the ift
April, 1801, to ihe 39th September, 1806,
amounted to 21,203,903 55
The payments on tha fame account to be
made by the Trcafury in the comfe of this
month, are—
For the reimbursement of five and half *
per cent, stock, 1,847,500
For the annua! reimbursement of the fix
per cent, and deterred (locks,
993.389 19
2
Amounting altogether, to 2,840,889 19
24,044,792 74
And making the total of principal of the
public debt, rtimburfed from the ift of
April, 180 1, to the ift of January, 1807,
more than 24,000,000 dollars.
During the fame period there have also
been paid to Great Britain, in fatisfaflion
anddifeharge of the money which the U.
States might have been liable to pay in
purfuancc of the provisions of the sixth arti
cle ot the treaty of 1794, two millons fix
hundred and sixty tour thousand dollars ;
and to the holders ot bills, drawn by the
minifterof the U. States at Paris, on ac
count ot American claims affirmed by th*
convention with France, a sum exceeding
three millions snd fifty thousand dollars;
neither of which Aims is included in the
preceding statement of debt redeemed.
As the only parts of the public debt
which the U. States have a right to reiin
burfe during the year 1807, conftft of the
annual reimbursement of the fix per cent,
and deferred dock*, eftimared at 1,540,707
dollars; and of the four and half per cent,
stock, amounting to 176,000 dollars, it
will not be practicable, unless purchases can
be eftVfted within the limitations preferibed
by law, to apply, during that year, the
whole of the annual appropriation of eight
millions of dollars. The unexpended bal.
ance, together with the appropriation for
the year iSoS, will enable the U. States
to reimburse, on the id ot January, ISO 9,
the whole of the eight per cent, stock,
which is irtedeemable before that day.
But in order that Congicis may have a
j clear view of the fitbaticn of the public
debt, alter the year 1808, and be enabled
1 to decide on the propriety of making further
legillative provision for that object, it ap.
pears nectflury to date diftinftjy ; ift. The
o,>craiion« which will take place in relation
to the debt during the years 1 Soy and 1808 :
idly. The several fptcics and aggregate
of debt, which will have been extinguilhed
between the ift April, iB*i, and the iff
January, 1809: 3<lly. The several fpc.
cies and aggregate of debt remaining unpaid
on the last mentioned day ; 4ihly, A com,
paracivc view of the revenue and annual
payments on account of the debt after that
day •
I. The payments to be made during the
years 1807 and iS»B, oit account of the
principal and Intercft es the public debt, |
consist of the following items, Viz.
littered and reimkurfemcnt cl the fix per
cent, and deferred docks 6,688,29608
Os which sum, the Asm required for in
tercity is 3,512,337 83
And the reimbursement of principal will
amount to 3>r75»95S 25
6,688,296 eg
Intercft and charges on all the other fpe
cics of debt, 3,529,45; 50
Principal of the eight per cent, and four
and half percent, flocks, 6,538,40000
Making altogether 16,756,1 53 58
■a*’
That is to fay, for Intercft
7>°4 , »795 33 . ,
And in reimburfetnent of principal,
9,714,358 25
16,756,153 58
This sum exceeds, by only 756,000 dol
lars, the fixtcea millions appropriated by
law for those two years, and that difference
may be supplied according to law, from the
forplufes of revenue already accrued, which
are fufficient fer that purpose; and which
it will be eligible to apply in that manner,
in order that the United States may not
continue to pay an intercft of eight per cent,
any longer than they are compelled to do it
by the terms of the loan.
11. The amount of debt redeemed from the
Ift of April, 18© 1, to the ift January next
hat been already ft ated to be.
24,044,752 74
And the principal which will be reimbur
sed during the years ISO7 & 1808. amounts
by the preceding ftatemsut, to
9,714,35825
1 Making together more than thirty-three
millions levcn (hundred and fifty thousand
dollars, reimbursed between the ift April,
1801, and th« lit January, 1809.
33>759» i s° 99
Which sum ccnfifts of the following items.
The whole of the foreign debt,
10,236,108 05
The whole of the loans formerly obtained
form this bank of the United Slates, and of
the navy fix, five and half, four and half,
aid eight per cent stocks, 12,537,600
Annual reimbursement of the - fix per cent,
and differred stocks, 10,631,575 67
Payments in various species «f ftotk for
public kfids, stock purchased, and unfunded
debt reiraburfed, 353>86; 27
33>759» 1 5«99
111. The debt remaining unpaid on the
Ift day of January, 1809, will consist of
the following species:
Unredeemed amount cfold fix percent,
and deferrid stocks, reimbursable only at the
rate of 8 cent, a year (for principal and
interest) oil the nominal amount, -
z 7j«4 2 j357 at
Three per cent, stock, 19,0x9,481 56
1796 fix per cent, ttock, redeemable in
1819, B*,ooo
Loutfiana; stock, reimbursable in tour an
nual inftalmhus, inhhe years 1818, 1819,
1820, xB2i|, 11,250,000
1
. 1 57,491,838 77
Amounting altogether to near fifty seven
millions and five hundred thousand dollars.
The Lomiima stock cannot be reimbursed
before the peiiod fixed by the contrail; the
gradual operation of the annual reimbursement
will extinguim the old fix per cent, in the
year 1818, and the deferred stock, in 1824,
after which yejir, ike only remaining incum
brance will bt the interaft on the three per
cent, stock, s(hiclun its prefint (bap*, may
be considered jas irredeemable. Purchafcs
cannot be reiiqd upon, as the application of
even an inconflderable sum would raise the
stocks above tty prices limited by law. It
follows that alllihe species of debt, on which
the entire annuaUppropriation of 8,c00,000
of dollars codd bperate, will have been rcitn
burfed prior to (he year 1809 ; that the re
mainin'!; debt cahoot, without some modili-
O *
cations, affentedl to by the public creditors,
be more rapidlyi or completely difchargtd,
than is here llate4 ; and that the annual pay
ments on that account, will, after the year
1808, and prior 4> the year ISIB, be redu
ced to the intcieftland annual reimbursement,
amounting to near 4,000,0c0, as will more
fully appear by t|ic annexed table marked
(G.)
IV. 1 The revenue derived from customs
during the year ifcoi, which was a year of
European peace, was much lcf& in propor
tion thao that cf any of the immediately pre
ceding or follow inf years, and yet exceeded
ten millions of dollars. As it has been as
certained that the (bpulafion, of the United
States, incrcaics at the rate cf thirty, five
per cent, in ten years ; the revenue derived
from customs for the year 1812, may be es
timated at thirteen millions fire hundred
thousand dollars : to which, adding only
five hundred thousand dollars, for the anru.
al proceeds of the salts cf public lands, svill
give fourteen millions of dollars for the to
tal revenue of that year, or for the a
verage revenue of the years 1809,1815. And
this mud be considered as a very moderate
computation, since it docs not include the re.
venue derived from New Orleans; is predi
cated on the supposition, that the wealth of
the United States increafe* in no gtfater ra.
tio than their population ; and does not ex.
cesd the sum, which exclufivelyot the Med.
iterranean fund, was received last year into
the treaftmy.
* I
The anacil payment cr. account of tU
public debt, will, during the fame period
amount, as has been already ft.,ted, t G *» jf
600,0c0 dollars. All ihc other expences of
the United States, whether drmcllic or f 0
reign, of a civil nature, cr for the fuppert
of the existing military and naval eftabliftu
raents, do not at present exceed St [ 9c'
000 dollars. The total annual expenditure'
a Howir g four hundred theufand dollars ,
year for contingencies, may therefore be es.
tiraated after the year 18 0 g, at eight mil'
lions and a half; which deduced from arel \
venue of fourteen millions, will leave a net
annual surplus ol live millions and a half cf
dollars.
The queflion now renews, whether* por.
lion cf thatfurplus would nor he me ft advan
tageuully employed in battering the redufli.
on of the debt ? Whether feme mode may not
be deviled to provide, within a Ihort period
for its final and complete
and thereby release the public revenue from
every incumbrance ? 'i his car. cnly be tffec.
ted by a mcdificalioa of the debt aflented to
by the public creditors ; and a convetfion 0 f
the old fix per cent, flocks, antenna mmu.
ally beneficial, into a ccmmt n fix per cent,
llcck, redeemable within a limited time, ha*
appeared the moll fimpJc and eligible, if ro t
the only practicable plan that can lie rdopt
td. For its details a re!ci«|cc is re-fpediful.
ly made to a letter win ten a, January lall,
lo the chairman cf the committee of ways 8c
means, a copy of w hich matked (F) is an
nexed. It will only be necessary to slate, j
that if such a plan Ihould be fandlioncd by
Congress, and accepted by.< the creditors,
thole fevera! fpecics of debt amounting, on
the rft of January, 1809, to something more
than forty, fix millions cf dollars, would be
converted into a fx per cent. Hock, emoen
ting to lels than forty miliicns ct dollars;
which the continued annual appropriation of
eight millions of dollars, would (besides pay
ing the imereft on the Louisiana debt) re
imhtirfe within a peroid of less than seven
years, or before the end of the year 1815,
as will appear by the table marked (H.)
The total hnnual expenditure for those se
ven years wculd then, allow ing (till 3,500,-
000 dollars for current cadences, & 400,CC9
dollars for contingencies, amount to fomc
thing less than twelve millions of dollars;
which deduced from a revenue cf fourteen
millions of dollars, would dill leave, after
ter the year i£oB, a dear surplus of more
than two millions of dollars, applicable to
such new objeds of general improvement or
national defence, as the legislature might di
rest, and existing circuraftances require.
And after the year 1815, no other incum
brance would remain on the revenue, than
the interest and ij-imburfcrnent of rhe Lou
isiana stock, tfie last payment of which
in the year 1821, would complete the final
Mainguiftimeut of the public debt.
All which is rcfpeflfuily submitted,
ALBERT GALLATIN,
Si c ret ary oj the Trca/ury,
Treasury Department,
December 5, iSod*
BONAPARTE’S LETTER
TO THE KING OF PRUSSIA.
Sir, Mr Brother.,
I have only received, on the yth, the
letter of your Majesty of the ejth of Sep
tember. lam sorry that you have been
m..dc to sign that kind cf pamphlet. I an
swer ii only to proceft to you, that I (hull
never attribute to your Majesty the things
contained therein—all are contrary to your
character, and the honor of both. I pity
and defpifc the writers ct such a wotk. I
have received, it immediately after the not#
of your miniUer of the tft ofOdlober. Yoa
have given me a rendevous for the Bth,
and as a valiant Knight, 1 have kept my
word ; lam in the heart of Saxony. May
your Mujefty believe me, I have such for
ces that, with all yout’s, yoa cannot long
contend with me for vidory.
But why Ihould wo shed so much bleed ?
for w hat end f 1 (bail hold the fam# Jan.
go age to you that I have held to th# Empe
ror Alexander two days before the battle of
Aufterhtn. Would to Heaven that men,
either fold or fanatical, greater enemies ta
yourfclf, and ti> your reign, than they
ape to me and my nation, had not given the
fame connfel* to produce the fame result.
Sir, I have been your friend for these fix
years. 1 ana not willing to profit by this
vertigo, which give# the impulse to your 1
councils and whieh has made you commit
political errors, at which Europe is yet al- |
tonifhed, and military errors, the enormity
of which Europe will foou refouod. If you
had afleed me in your note, poflible things,
1 would have granted then?—you have alkcd I
my dilhonoor—yoa might have been certam I
of my answer. You have then waged war 1
against me —rhe ailian.e is broken forever.
But why Ihould we have our fubjefts but
chered ? I do not value a viftory purchafei
by the lives of a number of my children. If
1 were just entering the military career, and
if I cosl.l fear the chances of combats, tbta «
language might be. mtfoheed. St, vote
M 'jvfty (hall be var.qrifhcd ; sou will have \
committed t» hazard tb#. trarquithty of |
yonr life, the existence of your fnbjectr, I
without the shadow of a pretext. You ai"
as y«t untouched, and can treat with me
a manner conformable to your rank. Be
fore a month his p..lud away, you will treat
in a different fixation —yoy have (offered
yenrfeif to be atted noon by ftj malar ions 1
ibat were calculated and artfully prepared—•
You have often told rre, tb *t you bad ten
“ Acred me some services : wci.! lam willing