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REDOUT
Os the Secretary nf the Treasury of the Untied
communicated to Congress , A ovemher 6,
1807.
IN’ obedience to the directions of the aft
to the aft entitled, “ An act
to eddhlifh the Treasury Department,” the Se
f"?tarv of the Treasury refpeftfully inbaiits the
following report and estimates.
REVENUE AND RECEIPTS.
The nett revenue at.flag from
duties on merchandii'e and tonnage,
w hie h accrned and u ring the year 1 SO j,
emounted to 14,125,138 ]
And that which accrued during
the year 1806, amounted, as will
appear by the (latement (A.) to 16,576,454
The fame revenue, after deduc
ting that portion which arose from
the duty on Salt, and from the ad
ditional duties coollituting the
Mediterranean fund, amounted, du
ring the year 1805, to 12,520,532
.A nd, during the year 1806, to 14,800,758
It in afeertaiaed that the nett re
venue which has accrned during the
three fir ft, q.uart era of the year 1807
exceeds that of the cotrefpomling
Siurters of the yearftSCS ; and that
ranch of the revenue may, exclu
lively of the duty on fait, and of the
Mediterranean fund, both of which
expire on the firft day of January
next, be fa/ely estimated for the
present, and if no change takes
place in the relations cf the United
States with foreign nations, at 14,C00,C00
The (latement (B.) exhibits in
the’’detail, ths feveralfpeciesof mer
elvandife and ether lources from
which the revenue was collected du
ring the year 1806.
It appears by the statement (C-)
that the sale of the public lands
have, during tire year ending on the
30th September, 1807, exceeded
284,000 acres. Some returns are
not yet received ; and the proctcdc
cf falesin the Mifhiippi Territory
being, after dedufting the furvty.
ing and other incidental expences,
Appropriated in the (lift place to the
payment of a sum of 1,250,000
dollars, to the date of Georgia,
have not been included, but are dif
tinftly dated. The actual pay.
r.ients by purchasers have, during
the fame period, exceeded 680,000
dollars ; and the receipts into the
TKafury from that lource may,
after dedufting charges and the five
per cent, reserved for roads, be es
timated for the ensuing year, at 500,000
The receipts arising from the
permanent revenue of the United
States, may, therefore, without in
cluding the duties on postage, and
other incidental branches, be com
pu :d for the year 180S, at 14,500,000
And the payments into the
Treasury during the fame year,
on account of the f;Jt and Medi
terranean duties prcvioufly accrued,
are estimated at 1,300,000
Making in the whole, an aggre-
S ateof dolls. 15,800,000
Last quarter of the year 1807.
The balance in the Treasury which
on the 30th day of Sept. 1706, a.
mounted to 5,495,969 dolls. 77
cents, did on the 30th day of Sept.
1807, amounted to 8,520,00
The receipts into the Treafurv,
from the Ift of October to the 31st
day of December, 1307, are efti.
m:lted at 4,000,000
, . Dolls. 12.530,000
The expences during the fame
period for all objefts whatever, the
public debt excepted, and includ
ing 086,676 dollars for the extra
ordinary expenditures of the Navy
Department, of which the estimate
has been transmitted, are eftimateft
1,700,000
1 he ordinary payments on ac
count of the public debt, including
the provision for the inttrdt on the
Louisiana and Dutch debt, to the
Ift of July 1308, are estimated at 1.700 000
A further sum nf about 1,500,000 3
dollars should also be paid during
this cjuai ter, m order to complete
the annual appropriation of eight
millions of dollars. If the whole
of this sum, which is applicable
to the purchase of the eight per
cent, fleck cannot be expended
this year, the unexpended balance
will so i m additional expendi*
tore for the year 1808, charging
however the whole to this quar.
tCi M , • 1,500,000
Making an aggregate cf 4,900,
000 dollars, and will, leave in the
T tea fury, at the close of the year,
7 bailee of about 7,630,000
Dolls. 12,530,000
Expenditures of the year 1808.
The permanent expences cal
culated on a peace eftablifhment.are
estimated at 11,609,000 dollars,
and cpnfift of the following items :
1. For the civil department,
and all domestic expences of a civil
nature, including invalid penfiona,
the Light-House and mint estab
lishments, the expences of surveying
public lands and the sea coail, the
fifth mllalmer.t of the loan due to
i the state of Maryland, and a sum
|of 100,000 dollars, to meet such
j mifcelaneoiisapproprnations, not in
i eluded in the estimates, as may be
made by Congrcfs, 1,100,000
2. For expences incident to the
j intercourse with foreign nations,
j including the permanent appropria
| tion for Algiers, 200,000
3. For tlie military and Indian
department, including trading hor
ses, and the permanent appropria
tion for certain Indian tribes, 1,280,000
4. For the naval eltablilhmcnt, 1,020,000
5. For the annual appropriation
of eight millions of dollars for the
principal and interest of the public
debt; of which sum not more than
3,400,000 dollars will, for the
year 1808, be appropriated to the
payment of interest, 8,009 000
Dolls. 11,600,000
To the permanent expences
must be added for the year 180‘S,
a sum of about 800,000 dollars, ne
cessary in “addition to the annual
appropriation of eight millions of
dollars to complete on the Ift of
January 1809, the remiburfement
of the eight per cent, flock, 800,000
And for paying the balance of
American claims, a (Turned by the
French convention, 200,000
Making altogether 12,600,c0b
dollars for the expences of tlmt
year, 12,500,000
The receipts of that
year having been efti
maied at 15,500,000
And the public bal
ance in the Treasury,
on the Ift Jau. next, 7,630,000
Making altogether, 23,430,000
Would therefore probably leave
in the Treasury, on the Ift of Jan.
1809, a balance of near eleven mil
lions of dollars, lo,SSd,ooo
Dolls. 23,430,00
PUBLIC DEBT.
I
It appears by the statement (D.)
that the payments on account of the
principal of ihe public debt, have dur
ing the year ending the 301 b day of
September, 1807, exceeding 4,600,
1 000, dollars—making the total of pub
lic debt reiinburfed from the iftof A
prilj ißot, to the lft of Otfober, 1807,
abour 25,880,000 dollars, exclusively
1 of more than fix millions, which have
been paid during the fame period, in
conlormiry with the provisions of the
treaty and convention with Gieat-Bri
tain, and of the Louisiana convention.
Os the twelve millions of dollars,
which, according to the preceding esti
mates, may be paid on account of the
public debt, between the 30th Sep
tember, 1807, an d lft January,
1 809, about eight millions will be on
account of tire principal. It must,
however, be observed, that the unas
certained result of the proposition made
to the public creditors for themodefi
cation of the debt, may effect the a
mount payable during the year 1808,
on account of both principal and inte
rest.
On the firft day of January, 1800,
the principal of the debt will, if (he
propoftd modification be not afiented
to by the public creditors, amount to
Imy-feven millions and five hundred
thousand dollars. The subsequent
annual payments thereon, on account
0 principal and interest, will not, ex
clusively of occasional purchases, ex
ceed 4,600,000 dollars: and the whole
of the debt, the nineteen millions ol
three per cent, flock only excepted,
will be reiinburfed in 16 years.
A general fubfeription would reduce
the capital to about fifty-one millions
ol dollars. The pay ments would a
-1 mount to eight millions of dollars an
m<ally, during fix years, and average
IcLs than three Trillions during the fc
ven following, at the end of which pe
riod the whole debt would be extin
gt; lifted.
An annual unappropriated surplus
of at lead three million of dollars, >na)
henceforth be relied upon with great
confidence. The receipts of the year
1808 have been estimated at 15,800,-
000 and the expenses at 12,500,000
dollars. The permanent revenue has
been computed at 14.500,000 dollars,
and the permanent expences, predicat
ed on an annual payment ot eight mil
lions of dollars on accountof the bebt,
have been dated at 1 1.500,000 do liars;
and as this would, if no modification
of the debt should take place, be re
duced to less than 8,500,600 the an
nual surplus would then amount to fix
millions of dollars. Nor are the se
ven millions and an half of doi’Jars,
which will remain in the treasury ai
the end of the present year, included
in the'calculation.
What portion of the surplus may be
wanted for needhry measures of secu
rity, and defence; what portion should
be applied to internal improvements,
which, whilst increasing and diffufiffg
the national wealth, will {Lengthen
the bonds of union, arel übjecis which
do not fall within the province of the
Treasury Department—‘-but it is trot
unpoftible, that after making ample
provision for both t hefe objects, conli
derable furpluffes, and which can no
longer be applied to the redemption
of the debt, may ftiil accumulate in
the treasury.
The previous accumulation of trea
sure in time of peace might, in a great
degree, defray the extraordinary ex
pences of war, and diminish theneces
fity of either loans or additional taxes.
It would provide, during periods of
prosperity, for these adverse events to
which every nation is exposed; inltead
of inereafing the burden.s,of the people
at a time when theyAe fca(lf able to
bear them, or of loAai nr.xb> antici
pation the gene
rations—and the puiwPffiibes of the
United States, not lng locked up
and withdrawn from the general circu
lation ; but on the contrary depofned
in banks, and continuing to form a
part of the circulating medium, the
moft formidable objeLion to that sys
tem, which has nevertheless been at
times adopted with confidfcrable fuc
j cefs in other countries, is thereby alto
jgether removed. It is also believed
j that the renewal of the character of
j the Bank, of the United States may,
; amongst other advantages, afford to
j government an opportunity of obtain
ing interest on the public deposits,
j whenever they shall exceed a certain
■amount.
j Should the United States, contrary
to their expe&aiion and detire, be in
volved in a war, it is believed that the
receipts of the year 1808 will not be
materially affe&ed by the event, inas
much asthey will principally arifefrom
the revenue accruing during the pre
sent year. The amount es outfhnd
ing bonds due by importers after de
ducting the debentures issued on ac
count of re-exportations, exceeds, at
ibis time, sixteen millions of dollars.
1 he deductions to be made from these
on account cf subsequent re-exporta
tions, would, in case of war, be less
than usual ; for exportations will then
he checked, as well as importation,
and in proportion as these will de
cieafe, a greater home demand will be
created for the flock on hand, and the
p.ecelfity of re-exporting be banished.
It has already been Rated, that the
specie in the treasury at the end of this
year, together with the surplus of the
year 1808, will amount to near eleven
millions of dollars—a sum probably
adequate to meet the extraordinary ex
pences of the war for that year. It
will also be recollefled, that in the es
timated expences of the year 1808, the
reimburiement ofnear five millions & a
half of the principal of ihe debt is in
clined. The only provision therefore
which may render any contingency ne
ceiraiy lor the extraordinary ierviceof
that year, in order to cover any defi
ciency of revenue or increase of ex
penditure beyond. what has been elti
mated, will be an authority to borrow
a sum equal to that feiinburfenient.
That the revenue of the United
States will, in subsequent years, be con.
fiderably impaired by a war, neither *
can or ought to be concealed. It is
on the contrary, necessary, in order to
be prepared for the crisis, to make a n
early view of the fubjefl, and to exa
mine the resources which should be
felled for supplying the deficiency,
and defraying the extraordinary ex
pences.
There arc no data from which tire
extent of the defalcation can at this
mcmeut be calculated, or even estima
ted. It will be fufficient to state, 1 ft.
That it appears necessary to provider
revenue at least equal to the annual ex
pences on a peace establishment, the in
terest on the loans which may be rais
ed. 2. That those expenses, togeth
er with the iruereft of the debt, will,
after the year 180S, amount to a sum
less than seven millions of dollars, ana
therefore, that if the present revenue
of 14.500,000 dollars shall not be di
minilhed more than one half by the
war, it will fti-II be adequate to the ob
ject, leaving only the interest of war
loans to be provided for.
Whether taxes should be raised to a
greater amount, or loans-be altogether
relied on for defraying the expenses
of the war is the next lubjeft of con
sideration.
Taxes are paid by the great mafsof
the citizens, and immediately affedt al
mofl every individual of the commu
nity, Loans are supplied by capitals
previously accumulated by a few indi
vidual s. In a country where the re
sources of individuals are not general
ly and materially alFctled by the war,
it is practicable and wife to raise by
taxes the greater part at least of the an
jrtual supplies. Ihe credit of the na
tion may also, from various circum
stances, be at times so far impaired as
to leave no resource but taxation. In
both refpeds the function of the Uni
ted States is totally dii'Ximihr.
A maritime war will, in the United
States, generally and deeply affedt,
whilst it continues, the resources of in
dividuals ; as not only commercial
profits will be curtailed, but principal
ly hecaufe a great portfen of the fur
■plusof agricultural produce neeeffari-
Iy requires a foreign market. The
reduced price of the principal articles
exported from the United Strtes util
operate more heavily than any con
templated tax. And without enquir
ing whether a fimiUr cause may not fhll
more deeply and permanently afreft. a
natiorr at war with the United States.
It fectns to folio’.”, that so far as relates
to America, the losses and privations
caused by the war should not be aggra
vated by taxes beyond what is ftri&ly
necefifary. An addition to the debt is
doubtfefs an evil; but experience hav
ing now (hewn with what rapid prog
ress the revenue of the union iucreaf
es in time of peace, with what facility
the debt formerly contracted has, ir. a
few years, been reduced, a hope may
confidently be entertained that all the
evils of the war will be temporary and
easily repaired, and that the return of
peace will, without any effort, afford
ample resources for reimbursing what
ever may have been borrowed during
the war.
The credit of the United States is
also unimpaired either at home or a
broad, and it is believed that loans to
a reasonable amount tnay be obtained
on eligible terms. Measures have been
taken to afeertain to what extent this
may be effected abroad; audit will be
k. ficient here to suggest, that the fev
crel banks of ihe United States may
find it convenient after the ensuing
year, and as the dirninifhed commerce
of the country may require less capi
tal, to loan to government a comid-T
----ab’e portion of their capital'iiock, now
computed at about forty millions of
dollars.
It might be premature to enter into
a particular detail of the Lveral bran
ches of revenue which may be sdcUed,
in order to provide for the interest
war loans, and to cover deficiencies in
ca(e tiie extfting revenue should full
below seven millions oi’ dollars. A