5. lu 5 per cent. stock of 1796 6. In Louisiana 6 per cent. stock Balance due on the 30th Sept. 1815, of the whole of the public debt contracted before the war 5,235,776 42 16,153,177 43 2,984,746 72 80,000 10,923,500 39,135.484 96 2. The amount of the funded debt contraeted on account of the late war on the 30th of Sept. 1815, may be stated at the sum of 63,144, 72 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 16,000,000 loan) authorised by the act of the 8th of Feb. 1813, obtained at the rate of 88 dollars in cash for 100 dollars in stock, and not reimbursable before the year 1826 3. In 6 per cent, stock of 1813 (the 7,500.000 loan) authorised by the act of the 2d of August 1813, obtained at the rate of 88 dollars 25 cents in money for 100 dollars in stock, and not reimbursable before the year 1826 4. In 6 per cent stock of 1814(which arose from loans in parts of a sum of 25,000,000 of dollars, called the ten million loan and the six million loan) authorised by the act of the 24th of March, 1814, ob. tained at different rates, and no reimbursable before 1827, to wit: 12,290,888 90 at 80 per cent, stock 140 810 at 85 per cent. 43.224 22 at 90 3-4 per cent. 7,860,500 18,109,377 48 8,498,581 95 15,366,111 21 165,658 82 47,627 79 82.420 72 15,601,818 54 8.341,283 77 1,085,851 08 33.998 44 280,612 24 4,000 9,745,745 53 3.268,949 63,144,972 50 created since the war to the 30th of Sept. 1815, 80,500,073 50 Total amount of the national debt on the 30th of 119,635,558 46 Sept. 1815 It is proper to remark, that the aggregate of he national debt, thus stated to the 30th of September 1815, is subject to considerable changes and additions. The floating debt in treasury notes is con. vertable, at the pleasure of the creditors, into funded debt: and independent of a direct application of the current revenue to discharge the treasury notes, as well as the temporary loans, there must be a great, though gradual reduction of the floating debt, by the payments made in treasury notes for duties, taxes, and public lands. There are, indeed, some claims known to exist for loans, supplies, and services, during the late war, which have not been liquidated, or are not embraced by existing appro priations; and, doubtless, there are other legal and equitable claims which have not yet been brought into view, in any form, at the accounting departments, but which may eventually receive the sanc. tion of congress. It is not, however, within the scope of any estimate hitherto made, to state the probable addition to the funded debt, under all circumstances, at more than five millions of dollars, which would consequently place the aggregate of the funded debt created in consequence of the war at a sum not much exceeding seventy millions of dollars. But it may be important to recollect, that the war debt has not been entirely incurred for objects limited to the continuance of the war; and that the military and naval establishments in particular, have derived durable advantages from the expenditures of the treasury. For the payment of the interest, and the reimbursement, or gradual extinguishment, of the na tional debt, the resources of the treasury are abun- debt, at its market price, not exceeding the par valdant; although the state of the circulating medium ue; and the interest of the debt purchased, together (which will be more particularly considered here- with the surplus of certain other appropriations, after) has rendered it impracticable to obtain at all was assigned for that purpose. When the annual times, upon reasonable terms, the local currency amount of the fund thus created should be equal to of some of the places appointed for the discharge of two per cent, on the six per cent. stock, it was dithe public engagements. These resources dependrecied to be first applied to the redemption of that upon the sinking fund, connected with the faith of stock, according to the right reserved; and then to the United States, which is pledged to supply from the purchase, at its market price, of any other pubthe existing, or from other subjects of revenue, the lic stock. deficiencies of that find. THE SINKING FUND. 3. In the year 1795, "The sinking fund" was established by name; its resources were vested in the The public debt amounted on the 1st of Jan. 1791, same commissioners; and its operations were subto the sum of $75,463,476 52 cts. and it consisted jected to their direction and management. The Of the foreign debt, 12,812,821 92 duty of the commissioners, independent of tempo. Of the domestic debt, 62,650,654 60rary objects, consisted in applying the sinking fund, 1st, to the payment of the six per cent. stock, at the 75.463,476 52 stipulated rate of eight per cent per annum; 21, to The foreign debt experienced various changes in the payment of the deferred stock after the year form and in amount. From 1792 to 1795, it rose 1801, according to the same stipulation, and 31 if above the amount stated for 1791; but from that pe-any surplus remained, towards the further and final riod it was gradually reduced; and on the 1st of redemption of the public debt, of every denomina. January 1801, it stood at the sum of 10,419,000 dol- tion. For the accomplishment of these purposes, lars. From the year 1801, however, the annual re- there were permanently appropriated and pledged, duction was more rapid; and in the year 1810, the in addition to the other monies constituting the sinforeign debt became extinct. king fund, and the interest of the amount of the purchased or redeemed debt, 1st, a sufficient sum arising yearly, and every year from the duties on imports and tonnage, and the duty on domestic distilled spirits and stills, as might be rightfully paid of the principal of the six per cent. stock, commen. cing on the first of January 1796; and of the deferred stock, commencing on the first of January 1802. 2d, the dividends on the public shares in the bank of the United States, but the shares were sold in 1796 and 1802, under an authority given in 1795. 3d, the net proceeds of the sales of public lands in the western territory. 4th, monies received into the treasury on account of old debts. 5th, the surpluses of revenue, beyond the amount of the appropriations. The domestic debt has also experienced various changes in form and amount. It was originally stipulated that it should be subject to redemption by payments not exceeding in one year, on account both of principal and interest, the proportion of 8 dollars upon 100 dollars of the stock; and when the sinking fund was constituted and organized, provision was made for effecting the payments in that proportion, until the whole debt should be extinguished, by dividends payable on the last days of March, June and September, in each year, at the || rate of 14 per cent. and on the last day of December in each year, at the rate of 3 per cent. upon the original capital. During the first period of about ten years, from 1791 until the first of January 1801, the amount of the domestic debt never fell below the sum which has been stated, and in 1801 it stood at about the sum of 72,619,050 dollars 80 cents. The augmentation created on account of the purchase of Louisiana (amounting to fifteen millions of dollars) raised the capital of the domestic debt in 1804, to the sum of 80,691,120 dollars 88 cents; but from that period there was a considerable annual diminution of the amount, until it was reduced, on the 30th of September, 1815, to the already specified sum of 39,135,484 dollars 96 cents. 4. Such was the outline of the sinking fand, when on the 6th of April 1802, the internal duties were repealed and on the 29th of April 1802, a new and additional provision was made for the redemption of the public debt. Thus; an annual sum of 7,300,000 dollars, was permanently appropriated and vested in the commissioners of the sinking fund, to be produced, 1st, by the monies (other than the surpluses of revenue) which then constituted the fund, or should arise to it by virtue of any previous provisions; 2d, by the sums annually required to The sinking fund, by whose operations these ben-discharge the interest and charges of the public eficial effects have been produced, may be regard- debt; and 3d, by so much of the duties on merched as coeval with the organization of the present andise and tonnage, as would be necessary, togeth government; but it has undergone many importanter with the preceding resources, to complete the modifications. annual investment of 7,300,000 dollars. The act not only placed the reimbursement of the principal, but also, the payment on account of interest and charges, of the public debt, under the superinten. dance of the commissioners; making it their duty to cause the fund to be applied in payment, 1st, ot such sums as by virtue of any acts they had previ 1. The early appropriations of the revenue were confined to the payment of the interest and instalments of the foreign debt; and to the payment of the interest of the domestic debt; but so early as the 4th of August 1790, the proceeds of the sales of the public lands in the western territory were permanently and exclusively appropriated and pled-ously been directed to pay; 2d, of such sums as ged towards sinking and discharging the debts for which the United States were then holden. The annexed table D will exhibit a statement of the quantity of the public lands, which have been annually sold, and of the proceeds of the sales, as far as can be now ascertained. 2. In the year 1792, however, commissioners were designated and authorised to purchase the public may be annually wanted to discharge the 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 ast of the 10th of November 1803, hav pared with the charges upon 'it, estimated for 1816, 6,524,200. 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 consider ing created six 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 applied by the commissioners to the payment of the public debt, including the Louisiana s.ockation of congress: in the manner above s ated. It may be added, that 1. That the existing revenue of the United States, the interest on the Louisiana stock is payable in arises, 1st, from duties on imported merchandize, Eupe; but the principal is reimbursable at the and the tonnage of vessels; 2d, internal duties, intre sary of the United States in four annual instal-cluding the direct tax upon lands, houses, and slaves; mecommencing in 1808. and 3d, the proceeds of the sales of public lands;. but some of these duties and taxes are permanently imposed, and some are limited in their duration. I is obvious that a sinking fund of eight million of dollars (independent of the general pledges in prior laws) was ample for the payment of the inter- 2. That the following duties or taxes are either est and the principal of a public debt, amounting partially, or wholly limited in their duration. 1st. only to the sum of eighty six million of dollars, ex- The duties on merchandize and tonnage will be retinguishing the six per cent. stock in 1818, the de-duced one half on the 17th of February, 1816; exferred stock in 1824, and the Louisiana stock incept such as are imposed on goods of the like des1822, as fast as the terms of the contracts, and the cription with the articles of domestic manufacture, policy of the governmen, would permit. The gen- on which duties have been laid, and included in eral operation of the fund, indeed, has been snewn; the general pledge. 2d, The new duty on salt; the but it is proper, more particularly to add, that on duty on sugar refined within the United States, the 1st of January 1815, there had been transferred and the stamp duty on bank notes, promissory notes to the credit of the commissioners, in the books of discounted; and on bills of exchange, are not incluthe treasury, an amount of public debt equal to ded in the general pledge, and will wholly cease on the sum of 33,873,463 dollars, 98 cents, of the fol- the 17th of February, 1816. lowing denominations, to wit: 3 per cent. stock 1. Foreign Debt. 8,200,000 820,000 3,180,000 2. Domestic Debt. Deterred 6 per cent. stock --12,200,000 1,946,026 92 698,555 41 1,005,179 83 6,482,500 4 per cent. stock 6 per cent. stock 3 per cent. stock 8 per cent stock Computed 6 per cent. stock 4 1-2 per cent stock 176,000 5 1-2 per cent. stock 1,848,900 Navy 6 per cent. stock 711,700 Louisiana 6 per cent. stock 326,500 6 per cent. stock of 1812. Exchanged 6 per cent. stock 6,294,051 12 321,200 -21,673,163 98 1. The annual appropriation for the sinking fund amounts to 8,000,000 of dollars, and consists at present, 1. Of the interest on such parts of the pub lic debt as have been reimbursed or paid off (which, however, is self derived from the customs) estimated on the 30th of September, 1813, at the sum of 2. Of the net proc eds of the sales of the public lands, exclusive of lands sold in the Mississippi territory which as yet belong to the state of Georgia) estimated annually at the sum of 3. Of the proceeds of duties on imports and tonnage, to complete the annual investments, estimated at the sum of 1,969,577 64 800,000 5,230,422 36 -8,000,000 2. The annual charge upon the sinking fund, estimated for 1816, will amount, probably to the sum of 14,524,200 dollars, On account of the interest and the instal 3,460,000 4,200,000 3. That the following duties or taxes are not lim ited in their duration, and are included in the general pledge. 1st. The direct tax upon lands, houses, and slaves. 2d. The duties upon licences to distillers of spiritous liquors, and upon the liquors 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 duties upon household furniture and watches. 7th. The duties on articles manufactured or made for sale within the United States. 8th. The rate of postage. 4. That the faith of the United States, and the revenue arising from the duties and taxes, which are not limited in their duration, are pledged for the punctual payment of the public debt, principal and interest, according to the terms of the contracts respectively; and for creating an adequate sinking fund, gradually to reduce and eventually to extinguish the debt. But this pledge will be satisfied by the substitution of other adequate duties or taxes; and the encrease in the proceeds of the duties on merchandize and tonnage, subsequent to the pledge, affords 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 nature, as well as great in their amount. Exclusively of the ordinary expences of the government, they consisted of demands for the payment of the army, preparatory to its reduction to the peace establishment, with other very heavy arrearages and disbursements on the war and navy departments; for the payment of the dividends on the funded debt, and of the arrearages as well as the Deficit in the amount of the sinking fund, com-" accruing claims, on account of the treasury note ments of the old debt, the sum of On the account of the interest of the new debt, computed on a capital of seventy millions of dollars, about the sum of On account of the principal and interest of treasury notes, issued under the act of the 30th of June, 1812, the 25th of February, 1813, and the 4th of March, 1814. (after al lowing for the amount reimbursed, subscribed to the loan, and paid for duties) about the sum of 6,864,200 -14,524,2^0 debt; and for the payment of the Louisiana dividends, with other considerable debes contracted in Europe, in consequence of the late war. the paper of the government; and it was a natural consequence, that wherever the treasury failed in procuring a local currency, it failed, also, in inaking a stipulated payment. The efficiency of the means which were possessed for the liquidation of these demands, depended Under these extraordinary, and perplexing cirupon circumstances beyond the control of the gov-cumstances, the great effort of the treasury was, ernment. The balance of the money in the treas-1st, to provide promptly and effectually for all urury consisted of bank credits, lying chiefly in the gent demands, at the proper place of payment, and Southern and western section of the union. The to the requisite amount of funds. 24, to overcome revenue, proceeding from the provision made prior the difficulties of the circulating medium as far as to the last session of congress was, comparatively, it was practicable; so that no creditor should receive of small amount. The revenue, proceeding from more, and no debtor pay less, in effective value, on the provision made during hat session, could not the same account, than every other creditor, or be available for a great portion of the present year; every other debtor: and third, to avoid any unreaand, in both instances, the revenue was payable in sonable sacrifice of the public property; particulartreasury notes, or it assumed he form of bank cred-ly when it must, also, be attended with a sacrifice its, at the respective places of collec ion. The on- of the public credit. It was not expected that this ly remaining resources for immediate use, were an effort would every where produce the same satisaldi ional issue of treasury notes, and a loan; but faction, and the same results; but the belief is enthe successful employment of these resources was tertained, that it has been successful in the attainrendered, for some time, doubtful, by the peculiar ment of its objects, to the extent of a just anticipsituation of the credi and currency of the nation. ation. table marked E. contains a statement of the amount 2. That there had been issued for the payment of the 1,455,059 The suspension of specie payments, throughout OF THE ISSUES OF TREASURY NOTES. the greater portion of the United States, and the The treasury notes, which were issued under consequent cessation of the interchange of bank acts passed prior to the 24th of February 1815, notes and bank credits, between the institutions of were, for the most part, of a denomination too the different states, had deprived the treasury of high, to serve as a current medium of exchange; all the facilities of trans erring is funds from place and it was soon ascer ained, that the small treasuto place; and a proposition, which was made at an ry notes, fundable at an interest of seven per cent. early period, to the principal banks of the commer-though of a convenient denomination for common cial ci ies, on the line of the Atlantic, with a view, use, would be converted into stock, almost as soon in some degree, to restore those facilities, could as they were issued. With respect to the first not be effected, for the want of a concurrence in description, therefore, the issue has not been resthe requisite number of banks. Hence it has hap-trained; but, with respect to the second description, pened (and the duration of the evil is without any the issue has been generally limited to cases of pe positive limitation) that, however adequate the culiar urgency; such as the payment of the army, public revenue may be in is general product to preparatory to its reduction; the payment of the discharge the public engagements, it becomes to divi iends on the public debt, where the local curtally inadequate in the process of its application; rency could not be obtained; and the payment of since the possession of public funds, in one part, no an inconsiderable amount of miscellaneous claims, longer affords the evidence of a fiscal capacity to dis-apparently entitled to distinction. The annexed charge a public deb, in any other part of the union. From the suspension of specie payments, and from various other causes, real or imaginary, dif ferences in the rate of exchange arose between the several states, and even between the several districts in the same state, and the embarrassments of the treasury were more and more encreased; since congress had not sanctioned any allowance on account of the rate of exchange, and the amount of the legislative appropriations was the same, whereever the legislative objects were to be effected. But the treasury notes partook of the inequalities of the exchange in the transactions of individuals, although the treasury could only issue them at their par value. The public stock, created in consideration of a loan, also partook of the inequalities of the exchange; altho' to the government, the value of the stock created, and the obligation of the debt to be discharged, were the same wherever the sub. scription to the loan might be made. Thus, notwithstanding the ample revenue provided, and permanently pledged, for the payment of the public creditor: and notwithstanding the auspicious influence of peace upon the resources of the nation; the market price of the treasury notes and of the public stock was every where far below its par, or true value, for a considerable period after the ad. journment of congress; vibrating, however, with a change of place, from the rate of 75 to the rate of 90 per cent. Payments in bank paper were universally preferred, during that period, to payments in 3. "That there had been issued for sundry miscellane- 1,203,100 109,681 4. That there has been sold at an advance producing OF THE LOAN. 4,142,850 The act of the 3d of March 1815, authorizel a loan, for a sum not exceeding 18,452,800, dollars; it was made lawful to accept in payment of subscriptions such treasury notes, as had been charged on the sinking fund; and a commission not exceeding one quarter of one per cent. was allowed, for selling the certificates of stock, or procuring subscriptions to the loan. Under this authority the annexed no. tice, marked F. dated the 10th of March, 1815, was published, opening a loan for the sum of 12,000,000 dollars, with a view, 1st, to absorb a portion of the treasury note debt; 2d, to obtain funds for paying the unsubscribed arrearages of that debt; and 3d, to aid the treasury with a supply of the local curren cies of different places, in some proportion to the probable amount of the local demands. The offers to subscribe to the loan prior to the 19th of April, 1815, placed (as it was proper to place) money and treasury notes upon the same footing 1,994,818 50 In Baltimore, the subscriptions have amounted, 1. In money to the sum of 2. In treasury notes to the sum of In Philadelphia, the subscriptions have amounted 2. In treasury notes to the sum of 、 In New-York, the subscriptions have but the offers varied essentially, in the terms and 1,845,000 amounted In Rhode Island, the subscriptions have amount in treasury notes, to the sum of In Massachusetts, the subscriptions have amount In New-Hampshire, the subscriptions amounted, 2,603,480 40 3,105,568 69 658,973 05 132,020 69 97,301 32 52,386 20 95,000 9,284,044 38 Having thus absorbed a portion of the treasury In this view of the subject, all the offers of subnote debt, and deeming the treasury to be possessscription to the loan, made in the first instance, ed of a sufficient supply of the local currency of were declined; but it was declared, at the same time, that offers at the rate of 95 percent. would be ac-ed and in arrears, were payable by law, except in the places at which the treasury notes, unsubscribcepted. The rate thus proposed, was adopted, upon the cities of New-York and Boston, the secretary of a consideration of the value of the stock; of the ethe treasury proceeded to assign funds for the payquitable, as well as legal claim of the holders of treasury notes; and of the real condition of the pub-of, in the form of the annexed copies, (marked rement of the treasury notes, and to give notice therelic credit The objects of the loan being (as alrea-spectively H and I,) in pursuance of the act of condy stated) to absorb a portion of the treasury note gress, passed on the 3d of March, 1815. As a sufdebt, and to acquire a sufficiency of local currency, ficient supply of the local currencies of Boston and for local purposes, the price of the stock at the treaNew-York had not been obtained, the overture was sury was, of course, independent of the daily up-made in the same notice, to discharge the treasury and-down prices of the various stock markets in the union, and could only be affected by the progress towards the attainment of those objects. Thus, while the wants of the treasury were insufficiently supplied, offers to subscribe were freely accepted, and the parties were sometimes authorised and invited to increase the amount of their offers; but where local funds had so accumulated, as to approach the probable amount of the local demands, the price of the stock was raised at the treasury; and, where the accumulation was deemed adequate to the whole amount of the local demands, the loan was closed. The policy of the course pursued at the treasury was soon demonstrated. Offers of subscription to the loan, at the rate of ninety-five per cent. payable in treasury notes, or in money, were presented to a large amount, soon after the rule of the treasury was declared; and the annexed table marked G. will exhibit the progressive and actual state of all the subscriptions to the 30th of September last. notes payable in those cities and in arrears, by ac cepting them in subscriptions to the loan, at the rate of 95 per cent. by exchanging them for other treasury notes, in which the interest due should be included as principal; or by giving drafts for the amount upon any of the banks, in which the govpen to the consideration and acceptance of the holernment possessed funds. This overture is still oders of the treasury notes in question; and it has been accepted, in the shape of subscriptions to the loan, to a considerable extent. Since the 30th of Sept. tails of which have not yet been completed, to these amount, including some subscriptions, the demore than two millions of dollars. of the transfer of balances of appropriations and of revenue from 1814 to 1815. the practice to consider the demands and supplies In the administration of the finances, it has been of each year, as distinct subjects for legislative In the District of Columbia, the money subscrip- ations, or of revenue, existing at the close of the provision, independent of the balances of appropritions (including the subscription of certain liquida- preceding years. The same course will now be purted claims upon the treasury) were successively at 95, 96 1-2, 97, and 98 per cent. and finally at par. Innual appropriations have never been entirely absorb. sued, but with a few explanatory remarks. The anthe city of Baltimore, the money subscriptions have ed, during the year for which they were made; and been at 95 and 96 1-2 per cent. In the city of Phil- the credit given, by law, for payments in every adelphia, the money subscriptions have been entire-branch of the revenue, necessarily introduces a disly at 95 per cent. The price was raised at the trea-crimination between the amount of duties which sury from ninety-five to ninety-eight per cent, on the 18th of June (subject, of course, to all unexecuted subscriptions previously accepted or authorised) and, since that time, considerable offers have been received at 95 and 96 per cent. but none have been received at the increased rate of 98 per cent. The subscriptions payable in treasury notes have been made in all places, at the same rate of 95 per A general abstract of the state of the loan, may, therefore be reduced to the following form: In the District of Columbia the subscriptions bave amounted: 1. In money to the sum of 2. In treasury notes to the sum of 2,282,037 38 257,276 65 and the amount which is paid, within the year, as accrues within the year, as a debt to the government; money into the treasury. The annual appropriations, however, are not charged upon the revenue of the year, specifically, in which they are made; and, in point of fact, they are satisfied whenever demanded cent.without reference to the time, when the revenue out of any unappropriated money in the treasury; accrued, or when the money was actually received at the treasury. The inconvenience of continuing appropriations in force, which were liable to be drawn from the treasury during an indefinite period, induced con. 2,539,314 02 | gress to enact in the year 1795, that any appropria |