The enclosed statement (A) shows in detail the several sources from which the receipts were derived, and the branches of expenditure to which the disbursements from the treasury were applied. Pursuant to the act of the 8th of February last, subscriptions for a loan of sixteen millions of dollars were opened on the 12th and again on the 25th of March last. But although a thirteen years' annuity of one per cent. was offered in addition to a six per cent. stock at par, for the money which might be subscribed, it being apparent from the result of the first subscription, that the whole amount could not be obtained on those terms, proposals in writing were invited. Offers, exceeding by about a million of dollars the amount wanted, were received, some demanding a thirteen year's annuity of one and a half per cent. in addition to six per cent. stock at par, but most of them requiring a six per cent. stock at the rate of 88 per cent. On these terms, leaving to the subscribers the option, the loan was effected. In conformity with the public notification, the same terms were extended to those persons who had subscribed on the first opening of the subscription, and they have the same option;which, if the stock at the rate of 88 per cent. be taken, is equivalent precisely to a premium of 13 dollars 63 cents and of a cent for each hundred dollars loaned to government. The enclosed papers under the letter (B) are copies of the several public notices given on the subject, and a statement of the monies respectively obtained by open subscriptions and by written proposals, and showing also the sums obtained and payable in each place where subscriptions were opened. Of that sum of sixteen millions of dollars thus obtained on loan, there was paid into the treasury, prior to the 1st of April, 1813, the sum of $1,086,737 50, which makes a part of the monies received previous to that day, as stated in the statement (A). The resources for the residue of the year 1813, consist of the following items, viz. : 1. The remainder of the loan above men tioned 2. The sums payable on account of customs and of the sales of public lands, estimated at 3. The five millions of dollars in treasury notes, authorised by the act of February 25, 1813 $14,913,262 50 9,320,000 00 5,000,000 00 Say $29,230,000 00 The expenses for the last nine months of the present year are calculated as followeth, viz. : 1. Civil list, and all expenses of a civil nature, both foreign and domestic 900,000 00 2. Payments on account of the principal and interest of the public debt 10,510,000 00 3. Expenses on account of the war and navy departments 17,820,000 00 $ 29,230,000 00 · Of the sum of $ 1,855,734 53, remaining in the treasury on the first of April last, a small part may be considered as applicable to such extraordinary expenses already authorised, as may arise during the remainder of the year; and for the same object, the sum of one million of dollars, authorised by an act of the state of Pennsylvania to be loaned to the United States, but which was not offered in time to be accepted as a part of the loan of sixteen millions, may be considered as a resource. In this estimate the whole sum of five millions of dollars authorised to be issued in treasury notes, is taken as a part of the resources of the present year. But as it is not deemed eligible to increase the amount of treasury notes in circulation, and as three millions only of those authorised by the act of 1812 were issued in that year, and are reimburseable in the course of the present year, it is respectfully suggested, that in lieu of two millions of the five millions authorised by the act of February, 1813, congress should authorise an additional loan for the same amount, it being made a condition of such loan that its terms should not be higher than those of the loan of sixteen millions already effected. The provision already considered is for the service of the present year only. That which will be necessary for the year 1814 requires an early attention. It is difficult to estimate with accuracy the sum which will be received into the treasury from the revenue as now established. During a state of war, the customs, at the present rate of duties, have been heretofore estimated to produce five millions of dollars. The additional tonnage duty imposed upon foreign vessels by the act of the first of July, 1812, producing about 200,000 dollars a year, is not included in that sum. It is believed that, during the year 1814, a greater sum than five millions two hundred thousand dollars ought to be relied upon as receivable into the treasury from custom-house duties. The sum arising from sales of public lands may be estimated at six hundred thousand dollars, making together 5,800,000 dollars. The interest alone, on the public funded debt, on temporary loans, and on the treasury notes which will become payable in that year, will amount to four millions four hundred thousand dollars. The other engagements, on account of the principal of the funded debt, of temporary loans, and of treasury notes which will become reimburseable in that year, amount to 7,150,000 dollars, exceeding together, by more than five millions seven hundred thousand dollars, the estimated amount of the receipts into the treasury derived from the revenue as now established. This view of the subject is sufficient to evince the necessity of a speedy and effectual provision for the service of that and the ensuing years. The mode and the extent to which this provision should be carried have been heretofore suggested from this department to congress, and have received the consideration of that body. The expenses of the peace establishment of the United States, and the interest on the public debt, including that on the loans made for the prosecution of the war, are believed to be the least sum that ought, under any circumstances, to be raised within each year. These, if the expenses of the establishment are taken at the sum necessary for the ordinary expenditure of the United States previously to the additional armaments made in the year 1812, with a view to an approaching state of war, and including the interest on the loans of the years 1812 and 1813, and also of that which will probably be necessary in the year 1814, will amount during that year to eleven millions four hundred thousand dollars. viz.: The expense of the peace establishment, exclusive of the additional force authorised by the acts passed during the year 1812, may be estimated at peace The interest on the public debt during the year 1814, will be as follows: On the old funded debt On 6 per cent. stock of 1812, in- reimbursable in 1814, say on cent. $ 2,100,000 500,000 1,090,000 $ 7,000,000 270,000 3,960,000 On the loan for the year 1814, interest paya ble within that year The revenue now established, being estima ted to produce Would leave to be raised To cover the above sum of 440,000 $ 11,400,000 5,800,000 5,600,000 11,400,000 The internal taxes heretofore proposed, were estimated to produce And the duty of 20 cents a bushel on salt imported, which, though estimated heretofore at only 400,000 dollars a vear, during a state of war, yet as the consumption considerably exceeds 2,000,000 of bushels, may be estimated to produce Making the sum wanted 5,000,000 600,000 5,000,000 Although the taxes, if early laid, may be brought into operation in the commencement of the year 1814, yet, as they cannot be expected to have their full effect during that year, some auxiliary resource will be required. This may be found in the sum of 1,500,000 dollars, which is the excess of the sinking fund for the present year, over the demands on that fund according to the existing engagements of the United States; this sum of $1,500,000 may be carried to the sinking fund for the year 18:4, and will be wanted in addition to the annual appropriation of $800,000, to meet the engagements on account of the public debt, which must be fulfilled during that year. As reliance must be had upon a loan for the war expenses of the year 1814, the laying of the internal taxes may be considered, with a view to that object, as essentially necessary; in the first place, to facilitate the obtaining of the loan, and secondly, for procuring it on favourable terms. It is ascertained that the terms of the loan, for the present year, would have been more favourable if the taxes had been previously laid; and it is obvious enough, that, by affording a security for the regular pa ment of the interest and the eventual reimbursement of principal, more stable, and less liable to be weakened or c by the natural effects of war upon external commerce, revenue depending, as that of the United States now de most wholly upon such external commerce, capitalists will advance with greater readiness, and at a lower rate of interest, the funds necessary for the prosecution of the war. Public con fidence will be ensured, and the means afforded of preserving the public credit unimpaired; a measure of the utmost importance in a country like ours, where, from the lightness of the demands made upon the people during the continuance of peace, the extraordinary expenses of a state of war can be supplied only by a resort to that credit. The resources of the country are ample, and if the means now proposed, and those heretofore recommended from this department, are adopted, it is believed they may be fairly and fully brought into action. All of which is respectfully submitted. W. JONES, Acting Secretary of the Treasury. Treasury Department, June 2d, 1813. A. Receipts and expenditures at the Treasury of the United States from 1st October, 1812, to 31st March, 1813. Cash in the treasury, subject to warrant, 1st October, 1812, Received for customs arrears of direct tax sales of public $2,362,652 69 $ 4,720,001 44 105 52 |