9,801,132 76 10, 2,400 The actual receipts of the Treasury. an authority was also given to issue a further sum In 1812 they amounted to the sum of of 3,000,000 dollars, to supply a deficiency in the From revenue appropriations for the expences of the war depart-From loans From treasury notes ment. The treasury notes issued under these authorities were in all respects similar to the prior 1 1813 they amounted to the sum of issues of treasury notes, except that the payment of From revenue the interest, and the reimbursement of the princi- From loans pal were not, as heretofore, charged upon the sinking fund, but upon any money in the treasury, not In 1814 they amounted to the sum of otherwise appropriated. 4. An authority was given to issue and re-issue treasury notes for a sum not exceeding 25,000,000 of dollars, upon principies, essentially different from the prior issues. 1. These treasury notes might be of any denomination. If they wer of a denomination less than co dollars, they were to be payable to the bar r, to be transferable by delivery, and to bear no interest. This denomination has acquired th desiguation of "small treasury notes." If they were of the deno nination of 10 dollars, or upwards, they might conform to the foregoing d scription; or they were to be payable to order, to be transferable by endorsen ut, and to bear int rest at the rate of 5 2-5 per cent per aunuia. This denomination (of which only notes for 100 dollars, bearing interest, have been issu d) has acquired the designation of treasury notes of the new emission."" 2. The principal and interest of these treasury notes are not paya 3. The holders of “small treasury notes" may exchange them, at of war. From treasury notes From revenue From loans From treasury notes 14,340,709 95 11,50,606 25 22,639,032 76 40,524,844 95 34,878,432 25 The aggr gate amount of the receipts into the trea 1,791,360 31 22,279,121 15 The actual disbursements of the Treasury. In 1913 they an ounted to the sum of 12,078,773 24 14 they amounted to the sum of 1,833,308 80 19,80 483 02 2,337,997 13 20,510,233 39,190,520 36 38,547,915 62 100,0 7,557 13 5. The stock thus created by the exchange of treasury notes, of either denomination, is reimbursable at any time after the 31st But as the receipts of the treasury for the year of December, 1921, and it is charged upon such funds as had been, or should b, established by law, for the payment and reimburse-1815 are derived principally from the war revenue ment of the funded public debt, contracted since the declaration and resources, and as its expenditures arise also principally from the arrearages of the war demands; 5. An authority was given to raise by loan a sum it is proper to comprize them, as far as they are not exceeding 18,452,800 dollars, and to create ascertained, in the following supplemental statestock for the amount, reimbursable at any time af ment: ter the expiration of twelve years from the last day of December, 1815. Neither the rate of interest, nor the price of the stock, was limited; but it was declared, that there might be received in payment of subscriptions to the loan, such treasury notes as were actually issued, before the passing of the act, and which were made by law a charge on the sinking find. And the payment of the interest, and the reimbursement, or the purchase of the principal stock, are charged upon the sinking fund. 6. It was declared, that any holder of any treasu-2. ry notes issued, or authorised to be issued, under any laws previously passed, might convert them into certificates of funded debt, bearing an interest of six per cent. per annum. 7. And it was declared, that it should be lawful for the secretary of the treasury to cause to be paid the interest upon the treasury notes, which have become due and remain unpaid, as well with respect to the time elapsed before they became due, as with respect to the time that shall elapse after they become due, and until funds shall be assigned for the payment of the said treasury notes, and notice thereof shall be given. the 1st of Jan. 1812, to the 30th of Sept. 815, be sum of The gross disbursements of the treasury for 1812, For the military service, &c. 2,537,000 15,790,14 71 7,050.000 25 8,909.178 22 The aggregat of the disbursements of the treasury 39,372,000 137,414,309 96 100,017,557 13 33,686,323 18 133,703,88 31 It will be natural here to enquire into the gene. ral effects of the war upon the public debt of the United States; and the annexed table marked C. The progress of expenditure, and of revenue, for exhibits a detailed statement of the unsatisfied the entire period of the war, is thus developed; and amount on the 1st day of Jan. annually, from the independent of the balance of appropriations for year 1791 to the year 1815, both inclusive. The the year 1814, which is transferred to the accounts subject, however, my be placed distinctly, in the for the year 1815, the subject may be reduced to the following point of view, upon estimates referring to following general abstract. the date of the 30th of Sept. 1815. Balance due on the 30th of Sept. 1815, of the whole of the public debt contracted before the war 5,235,776 42 16,158,177 43 2,984,74 72 10.9 3,500 39,135,484 96 2. The amount of the funded debt contracted on account of the late war on the 30th of Sept. 1815, may be stated at the sum of 63,144,972 dollars 50 cents; to wit: 1. In 6 per cent. stock of 1812 (the 11,000,000 loan) authorised by the act of the 4th of March, 1812, obtained at par, and not reimbursable before the year 1825 2. In 6 per cent. stock of 1813 (the 16,00,000 lean) authorised by the act of the 8th of Feb. 1813, ob tained at the rate of 88 dollars in cash for 100 dol lars in stock, and not reimbursable before the year . 1826 3. In 6 per cent. stock of 1813 (the 7,500,00^, loan) authorised by the act of the 2d of August, 1813, ob tained at the rate of 89 dollars 5 cents in money for 100 dollars in stock, and not reimbursable be fore the year 1826 4. In 6 per cent. stock of 1314 (which arose from loans in parts of a sum of 25,000,000 of dollars, called the ten million loan and the six million luan) authorised by the act of the 24th of March, 184, ob tained at different rates, and not reimbursable be fore 1827, to wit: 12,29,88 90 at 80 per cent. stock, 140,810 at 85 per cent. 7,860,500 18,109,377 48 8,498,581 95 Qutstanding amount of treasury notes, bearing inte 2. The aggregate of 'small treasury notes,' issued and Of this aggregate there has been funded for 7 per cent. Outstanding small treasury notes,' about the sum of 216,587 4,315,000 1,200,000 5,515,000 14,680,600 823,901 694,600 15,366,111 21 Making the aggregate amount of the floating public 165,658 82 47.627 79 82,420 72 15,661,8 8 54 8,341,283 77 280,61 24 3,268,949 Estimated amount of the whole of the funded pub- 1. The aggregate of the treasury notes issued under 9,745,745 53 Total amount of the national debt on the 30th of Sep- 2,799,200 7,847,250 2,770,720 Payable in 1814, but unpaid Payable in 1815 Payable in 1816 Payable also in 1816 (issued under the special authority of the act of the 25th Dec. 1814) 8,318,400 which would consequently place the aggregate ofly and exclusively appropriated and pledged tothe funded debt created in consequence of the war wards sinking and discharging the debts for which at a sum not much exceeding 70,000,000 of dollars. the United States were then holden. The annexed But it may be important to recollect, that the war table D. will exhibit a statement of the quantity of debt has not been entirely incurred for objects the public lands, which have been annually sold, limited to the continuance of the war; and that the and of the proceeds of the sales, as far as can be military and naval establishments in particular, have now ascertained. derived durable advantages from the expenditures 2. In the year 1792, however, commissioners were of the treasury. designated and authorised to purchase the public For the payment of the interest, and the reim- debt, at its market price not exceeding the par vabursement, or gradual extinguishment, of the na-lue; and the interest of the debt purchased, togetional debt, the resources of the treasury are abun-ther with the surplus of certain other appropriations dant; although the state of the circulating medium was assigned for that purpose. When the annual (which will be more particularly considered here- amount of the fund thus created should be equal to after) has rendered it impracticable to obtain at all 2 per cent on the 6 per cent stock, it was directed times, upon reasonable terms, the local currency of to be first applied to the redemption of that stock, some of the places appointed for the discharge of according to the right reserved; and then to the the public engagements. These resources depen i purchase, at its market price, of any other public upon the sinking fund, connected with the faith of stock. the United States, which is pledged to supply from the existing, or from other subjects of revenue, the deficiencies of that fund. THE SINKING FUND. The public debt amounted, on the 1st of January 1791, to the sum of 75,463,476 dollars 52 cts.; and it consisted. Of the foreign debt, 12,812,321 92 3. In the year 1795, "the sinking fund" was esta blished by name; its resources were vested in the same commissioners; and its operations were subjected to their direction and management. The duty of the commissioners, independent of temporary objects, consisted in applying the sinking fund, 1st, to the payment of the 6 per cent stock, at the stipulated rate of 8 per centum per annum; 2d, to the payment of the deferred stock after the year 1801, according to the same stipulation; and, 3d, if any The foreign debt experienced various changes surplus remained, towards the further and final rein forin and in amount. From 1792 to 1795, it rose demption of the public debt, of every denomination. above the amount stated for 1791; but from that For the accomplishment of these purposes, there period it was gradually reduced; and on he 1st of were permanently appropriated and pledged, in January 1801, it stood at the sum of 10,419.000 dol- addition to the other monies constituting the sinklars. From the year 1801, however, the annual re-ing fund, and the interest of the amount of the purduction was more rapid; and in the year 1810, the chased or redeemed debt, 1st, a sufficient sum arisforeign debt became extinct. ing yearly, and every year, from the duties on im 7,463, 76 52 The domestic debt has also experienced various ports and tonnage, and the duty on domestic dischanges in form and amount. It was originally sti-tilled spirits and stills, as might be rightfully pail puated, that it should be subject to redemption of the principal of the 6 per cent. stock, commencby payments not exceeding, in one year, on accounting on the first of January 1796; and the deferred both of principal and interest, the proportion of 8 stock, commencing on the first of January 1802dollars upon 100 dollars of the stock; and when the 2d, the dividends on the public shares in the Bank sinking fund was constituted and organized, pro- of the United States, but the shares were sold in vision was made for effecting the payments in that 1796 and 1802, under an authority given in 1795. proportion, until the whole debt should be extin-3d, the net proceeds of the sales of public lands guished, by dividends payable on the last days of in the western territory. 4th, monies received inMarch, June and September, in each year, at the to the treasury on account of old debts. 5th, the rate of 14 per cent, and on the last day of Decem-surplusses of revenue, beyond the amount of the ber in each year, 34 per cent. upon the original ca- appropriations. pital. During the first period of about ten years, 4. Such was the outline of the sinking fund, from 1791 until the 1st of January 1801, the amount when on the 6th of April 1802, the internal duties of the domestic debt never fell below the sum were repealed, and on the 29th of April 1992, a new which has been stated, and in 1801 it stood at about and additional provision was made for the redempthe sum of 72,619,050 dollars 80 cents. The aug- tion of the public debt. Thus, an annual sum of mentation created on account of the purchase of 7,300,000 dollars,was permanently appropriated and Louisiana (amounting to 15,000,000 dollars) raised vested in the commissioners of the sinking fund, to the capital of the domestic debt in 1804, to the sum be produced, 1st, by the monies (other than the of 80,691,120 dolls. 88 cents; but from that period surplusses of revenue) which then constituted the there was a considerable annual diminution of the fund, or should arise to it by virtue of any previous amount, until it was reduced, on the 30th of Septem-provisions; 2d, by the sums annually required to ber 1815, to the already specified sum of 39,135,484 to discharge the interest and charges of the pubdolls. 96 cents. lic debt; and, 3rd, by so much of the duties on The sinking find, by whose operations these ben-merchandize and tonnage, as would be necessaeficial effects have been produced, may be regard-ry, together with the preceding resources, to comed as coeval with the organization of the present plete the annual investment of 7,300,000 dollars.-government, but it has undergone many important The act not only placed the reimbursement of the modifications. principal, but also, the payment on account of in 1. The early appropriations of the revenue were terest and charges, of the public debt, under the confined to the payment of the interest and instal-superintendance of the commissioners; making it ments of the foreign debt, and to payment of the inte- their duty to cause the fund to be applied in payrest of the domestic debt; but so early as the 4th of ment, 1st, of such sums as by virtue of any acts August 1790, the proceeds of the sales of the pub- they had previously been directed to pay; 2d, of such kic lands in the western territory were permanent- sums as may be annually wanted to discharge the 2. The annual charge upon the sinking fund, esti mated for 1816, will amount, probably, to the sum of 14,524,200 dollars, On account of the interest and the instalments computed on a capital of seventy millions of On account of the principal and interest of trea- 3,460,000 4,200,000 interest and charges accruing on any other part of the then debt of the United States; 3d, of such sums as may be annually required to discharge any instalment of the principal of the then debt: and 4th, as to any surplus, to apply it towards the further and final redemption, by payment or purchase of the then debt: The act of the 10th of November, 1803, having created 6 per cent stock to the amount of 11,250,000 dollars, in pursuance of the convention for the purchase of Louisiana, added an annual sum of 700 000 dollars: to the sinking fund, to be paid out of the duties on merchandize and tonnage; and to be appli- Deficit in the amount of the sinking fund, comed by the commissioners to the payment of the pub-pared with the charges upon it, estimated for 1816, lic debt, including the Louisiana stock, in the manner above stated. It may be added, that the interest on the Louisiana stock is payable in Europe; but the principal is reimbursable at the treasury of the United States in four annual instalments commencing in 1808. 6,524,200. 6,964,200 -14,524,300 From this view of the financial operations of the government, the secretary of the treasury, with every sentiment of deference and respect, presents the following general conclusions, for the consideration of congress: It is obvious that a sinking fund of 8,000,000 of 1. That the existing revenue of the United States, dollars, (independent of the general pledges in pri- arises, 1st, from duties on imported merchandize, or laws) was ample for the payment of the interest and the tonnage of vessels; 24, internal duties, inand the principal of the public debt, amounting on- cluding the direct tax upon lands, houses, and slaves; ly to the sum of 86,000,000 dolls. extinguishing the and 3d, the proceeds of the sales of public lands; 6 per cent stock in 1818, the deferred stock in but some of these duties and taxes are permanently 1824, and the Louisiana stock in 1822, as fast as the imposed, and some are limited in their duration. terms of the contracts, and the policy of the govern- 2. That the following duties or taxes are either ment would permit. The general operation of the partially or wholly limited in their duration. fund, indeed, has been shewn; but it is proper, The duties on merchandize and tonnage, will be more particularly to add, that on the 1st of Janua- reduced one half on the 17th of February, 1816; exry 1815, there had been transferred to the credit of cept such as are imposed on goods of the like dethe commissioners, in the books of the treasury, scription with the articles of domestic manufacture, an amount of public debt equal to the sum of on which duties have been laid, and included in the 33,873,463 dollars 98 cents, of the following denomi-general pledge. 2nd, the new duty on salt, the dunations, to wit: 3 per cent. stock 4 per cent. stock 6 per cent. stock 3 per cent stock 1. Foreign debt. 8,200 000 2. Domestic debt. Deferred 6 per cent. stock 8 per cent. stock Exchanged 6 per cent, stock 4 1-2 per cent. stock 1,946,026 92 Computed 6 per cent stock 5 1-2 per cent. stock 1,844,900 Navy per cent.stock 711,700 Louisiana 6 per cent. stock 3.6,500 6 per cent. stock of 1812 321,200 -12,200,000 1st. ty on sugar refined within the United States, and the stamp duty on bank notes, promissory notes discounted, and on bills of exchange, are not included in the general pledge, and will wholly cease on the 17th of February, 1816. 3. That the following duties or taxes are not limited in their duration, and are included in the general pledge. 1st, The direct tax upon lands, houses, and slaves. 2nd, The duties upon licences to distillers of spirituous liquors, and upon the li quors distilled. 3d, The duty upon licences to retailers of wines, spirituous liquors, and foreign merchandize. 4th, The duty upon sales at auction.5th, the duty upon carriages and harness. 6th, the -21,673,463 98 duties upon household furniture and watches. 7th, The duties on articles manufactured or made for 33, 73,463 98 sale within the United States. 8th, The rate of postage. But the charges upon the sinking fund have accumulated, in consequence of the late war, to an 4th. That the faith of the United States, and the amount which it has not the capacity to defray; while revenue arising from the duties and taxes, which are its operations, in other respects, have been obstruct-not limited in their duration, are pledged for the ed by the temporary failure of the revenue arising punctual payment of the public debt, principal and om duties on merchandize and tonnag, nd the interest, according to the terms of the contracts protracted embarrassments of the circulating medi-respectively; and for creating an adequate sinking Thus, fund, gradually to reduce and eventually to extin 1. The annual appropriation for the sinking fund the substitution of other adequate duties or taxes; guish the debt. But this pledge will be satisfied by amounts to 8,000,000 of dollars, and consists at pre-and the increase in the proceeds of the duties on um. sept 2. Of the interest on such parts of the public debt as have been reimbursed or paid off (which, however, is self derived from the customs) estinated on the 30th of Septem. ber, 181, at the sum of 2. Of the net proceeds of the sales of the publie lands, exclusive of lands sold in the Mississippi territory (which as yet belong to the state of Georgia) estimated aunually at the sum of 2. Of the proceeds of duties on imports and tonnage, to complete the annual investments, esimated at the sum of 1,969,577 64 800,000 5,230,422 36 merchandize and tonnage, subsequent to the pledge, afford an advantageous opportunity of making such substitution, in respect to the more inconvenient and burthensome portion of the internal duties. 5. That the establishment of a revenue system, which shall not be exclusively dependent upon the supplies of foreign commerce, appears, at this juncture, to claim particular attention. II. A view of the finances for 1815, with estimates of the public revenue and expences for 1816, At the close of the last session of congress, the demands upon the treasury were interesting in their public creditor; and notwithstanding the auspicious nature, as well as great in their amount. Exclusively influence of peace upon the resources of the nation, of the ordinary expences of the government, they the market price of the treasury notes and of the consisted of demands for the payment of the army, public stock, was every where far below its par or preparatory to its reduction to the peace establish- true value,for a considerable period after the adjournment, with other very heavy arrearages and dis-ment of congress; vibrating, however, with the bursements on the war and navy departments; for change of place, from the rate of 75 to the rate of Payments in bank paper were univerthe payment of the dividends on the funded debt, 90 per cent. and of the arrearages as well as the accruing claims, sally preferred during that period, to payments in on account of the treasury note debt, and for the the paper of the government; and it was a natural payment of the Louisiana dividends, with other consequence, that wherever the treasury failed in considerable debts contracted in Europe, in conse-procuring a local currency, it failed, also, in making a stipulated payment. quence of the late war. Under these extraordinary and perplexing cir The efficiency of the means which were possessed for the liquidation of these demands, depended up-cumstances, the great effort of the treasury was, on circumstances beyond the control of the govern-1st, to provide promptly and effectually for all urgment. The balance of money in the treasury con-ent demands, at the proper place of payment, and sisted of bank credits, lying chiefly in the southern to the requisite amount of funds: 2d, to overcome The revenue, the difficulties of the circulating medium as far as and western sections of the union. proceeding from the provision, made prior to the it was practicable; so that no creditor should relast session of congress, was, comparatively, of ceive more, and no debtor pay less, in effective vasmall amount. The revenue, proceeding from the lue, on the same account, than every other crediprovision made during that session, could not be tor, or every other debtor: and third, to avoid any available for a great portion of the present year; unreasonable sacrifice of the public property; parand, in both instances, the revenue was payable in ticularly when it must, also, be attended with & satreasury notes, or it assumed the from of bank crifice of the public credit. It was not expected credits, at the respective places of collection. The that this effort, would every where produce the only remaining resources for immediate use, were same satisfaction, and the same results; but the bean additional issue of treasury notes, and a loan; lief is entertained, that it has been successful in but the successful employment of these resources the attainment of its objects, to the extent of a was rendered, for some time, doubtful, by the just anticipation. peculiar situation of the credit and currency of the nation. OF THE ISSUES OF THE TREASURY NOTES. The treasury notes which were issued under acts The suspension of specie payments, throughout passed prior to the 24th of February, 1815, were the greater proportion of the United States, and the for the most part, of a denomination too high, to consequent circulation of the interchange of bank serve as a current medium of exchange; and it was notes and bank credits, between the institutions of soon ascertained, that the small treasury notes, the different states, had deprived the treasury of fundable at an interest of 7 per cent, though of a all the facilities of transferring its funds from place convenient denomination for common use, would to place; and a proposition, which was made at an be converted into stock almost as soon as they were early period, to the principal banks of the commer-issued. With respect to the first description, therecial cities, on the line of the Atlantic, with a view, fore, the issue has not been restrained; but, with in some degree to restore those facilities, could not respect to the second description, the issue has be effected, for tae want of a concurrence in the been generally limited to cases of peculiar urgency; requisite number of banks. Hence, it has happen- such as the payment of the army preparatory to ed (and the duration of the evil is without any po- its reduction; the payment of the dividends on the sitive limitation) that, however adequate the public public debt, where the local currency could not be revenue may be in its general product to discharge obtained; and the payment of an inconsiderable the public engagements, it becomes totally inade-amount of miscellaneous claims, apparently enti quate in the process of its application; since the tied to distinction. The annexed table marked E, possession of public funds, in one part, no longer contains a statement of the amount of the small affords the evidence of a fiscal capacity to discharge treasury notes, which had been issued on the 30th of September, 1815, from which it appears, a public debt, in any other part of the union. 1. That there had been issued for the payment of the army, a sum of public debt, the sum of claims, the sum of 1,165,069 1,203,100 109,581 32,107 64 for the purpose of raising funds to meet the 1,365,000 4,142,850 OF THE LOAN. From the suspension of specie payments, and from various other cautes, real or imaginary, dif-2. That there had been issued for the payment of the ferences in the rate of exchange, arose between the several states, and even between the several dis-3. That there had been issued for sundry miscellaneous tricts in the same state, and the embarrassments 4. That there has been sold at an advance producing of the treasury were more and more increased; since congress had not sanctioned any allowance on account of the rate of exchange, and the amount of the legislative appropriations, was the same, The act of the 3d of March 1815, authorized a wherever the legislative objects were to be effected. But the treasury notes partook of the inequal loan, for a sum not exceeding 18,452,800 dollars; it ities of the exchange in the transactions of indivi- was made lawful to accept in payment of subscripduals, although the treasurer could only issue them tions such treasury notes, as had been charged on at their par value The public stock, created in the sinking fund; and a commission not exceeding consideration of a loan, also partook of the inequali-one quarter of one per cent. was allowed, for selties of the exchange; although to the government, ling the certificates of stock, or procuring subscrip the value of the stock created, and the obligation tions to the loan. Under this authority the annexed of the debt to be discharged, were the same wher-notice, marked F, dated the 10th of March 1815, ever the subscription to the loan might be made. was published, opening a loan for the sum of Thus, notwithstanding the ample revenue provided 12,000,000 dollars, with a view, 1st, to absorb a and permanently pledged, for the payment of the portion of the treasury note debt; 2d, to obtain |