AMERICAN STATE PAPERS. FINANCE.

Transcription

1 AMERICAN STATE PAPERS. FINANCE. 4th CONGRESS.] NO [ st SESSION. STATE OF THE FINANCES. COMMUNICATED TO THE SENATE, DECEMBER 8, 85. In obedence to the acts enttled, respectvely, " An act to establsh the Treasury Department," and " An act supplementary to the act enttled an act to establsh the Treasury Department," the Secretary of the Treasury has the honor to lay before Congress the followng report, comprehendng, I. A cursory revew of the fnancal operatons of the Government, n reference to the recent state of war. II. A vew of the fnances for 85, wth estmates of the publc revenue and expendtures for 86. III. Propostons for the mprovement and management of the revenue, and for the support of publc credt. I. A CURSORY REVIEW OF THE FINANCIAL OPERATIONS OF THE GOVERNMENT IN REFERENCE TO THE RECENT STATE OF WAR. In order to ntroduce to the consderaton of Congress, wth advantage, the measures whch wll be respectfully suggested, for replacng the fnances of the Unted States upon the bass of a peace establshment, a revew of the fnancal operatons of the Government, n reference to the recent state of war, appears to be a necessary prelmnary. The restrctve system, whch commenced n the year 807, greatly dmnshed the product of the publc revenue; but t was not untl the crss nvolved an actual declaraton of war, that the augmentaton n the expenses of the Government became obvous and mportant. Wth the occasonal ad of temporary loans the ordnary recepts of the Treasury had exceeded the ordnary expendtures, even durng the perod of a suspended commerce; () and a report from ths Department, presentng the estmates for the year 82, seems to have gven the frst ntmaton that the porton of extraordnary expenses, to be ncurred for the mltary and naval servce, on account of the then exstng state of the country, would rase the demands upon the Treasury to a consderable amount beyond the estmated product of the current revenue. (2) The ordnary dsbursements for the year endng on the 30th of September, 8, were stated as amountng to the sum of $3,052,657 73; and the ordnary recepts, for the same year, were slated as amountng to the sum of $3,543,446 37, ndependent of a temporary loan rased n 80, and repad n 8, as well as of the balances n the Treasury at the commencement and the close of the year. But the estmates for the year 82 requred, on account of the current expenses, the sum of $9,400,000. For the Cvl and Dplomatc Departments, - $,260,000 For the Mltary Department, (ncludng the mlta, the Indan Department, the charge of arsenals, army, and ordnance, &c.) - 3,45,000 For the Naval Department, ,500,000 And for the nterest on the publc debt, - 2,2 And the subsstng revenue to meet these expenses was estmated at the sum of $8,200,000, proceedng From the customs, ,500,000 From the sale of publc lands, ,000 And from mscellaneous payments, ,000 $9,400,000 8,200,000 Leavng a defct, for whch t was proposed to provde by & loan, amountng to the sum of $,200,000 Such were the lmted objects of expense, and such the lmted means of supply, at the commencement of the year n whch war was declared. An ncrease of the expense, and a dmnuton of the supply, must have been antcpated as the nevtable consequences of that event; but the Government reposed wth confdence, for all the requste support, upon the untred resources of the naton, n credt, n captal, and n ndustry. The confdence () See the annexed table A, exhbtng & statement of the gross annual recepts and dsbursements of the Treasury, from the year 79 to the year 82. (2) See the annual report of the Secretary of the Treasury, dated the 22d November, 8. C

2 3 3 FINANCE. * [No. 454 was justly reposed; yet t may, perhaps, be consdered as a subject for regret, and t certanly furnshes a lesson of practcal polcy, that there exsted no system by whch the nternal resources of the country could be brought at once nto acton, when the resources of ts external commerce became ncompetent to answer the exgences of the tmes. The exstence of such a system would, probably, have nvgorated the early movements of the war; mght have preserved the publc credt unmpared; and would have rendered the pecunary contrbutons of the people more equal as well as more effectve. But, owng to the want of such a system, a sudden and almost an exclusve resort to the publc credt was necessarly adopted as the chef nstrument of fnance. The nature of the nstrument employed was soon developed; and t was found that publc credt could only be durably mantaned upon the broad foundatons of publc revenue. On the openng of the sesson of Congress n November, 8, the legslatve attenton was devoted to the organzaton of the Mltary and Naval Departments upon the enlarged scale of the war establshment; so that the appropratons for ths purpose far exceeded, n a short tme, the estmates and the resources of the Treasury, as they have been already descrbed. Ways and means were, therefore, provded to meet the extraordnary demands thus created; but they were derved exclusvely from the operatons of foregn commerce and of publc credt.. The Medterranean fund was at frst contnued untl the 4th of March, 83, and afterwards untl March, 85, when t became extnct, affordng an addtonal duty of two and a half per cent, ad valorem on all mported goods payng dutes ad valorem; and a dscrmnatngduty of ten per cent, upon that addtonal duty, n respect to all goods mported n vessels not of the Unted States. () 2. There were mposed an addtonal duty of 00 per cent, upon the permanent dutes on goods mported nto the Unted States, from any foregn place, a dscrmnatng duty of 0 per cent, upon that addtonal duty, n respect to all goods mported n vessels not of the Unted States; and an addtonal duty of 50 per ton (the prevous duty beng at the rate of 50 cents per ton) upon all vessels belongng wholly or n part to the subjects of foregn Powers. But the contnuance of the act beng lmted to the expraton of one year after the concluson of the peace, these addtonal dutes wll cease on the 7th of February, 86.(2) 3. An authorty was gven to rase, by loan, a sum not exceedng $,000,000, and to create stock for the amount, bearng nterest, not exceedng the rate of sx per cent, per annum, and rembursable at any tme after the expraton of twelve years, from the st of January, 83. The payment of the nterest, and the redempton or the purchase of ths stock, are charged upon the snkng fund. (3) 4. And an authorty was gven to ssue Treasury notes for a sum not exceedng $5,000,000, bearng nterest at the rate of 5 - per cent, per annum, and rembursable at such places, respectvely, as should be expressed on the face of the notes, one year after the day on whch the same shall have been ssued. The notes were declared to be recevable n payment of all dutes and taxes lad by the Unted States, and all publc lands sold by ther authorty; and the payment of nterest, and the redempton or the purchase of these notes were charged, lke the funded debt, upon the snkng fund. (4) The effect of the addtonal ways and means provded by Congress, from tme to tme, durng the late war, may readly be traced. From the report, dated the st of December, 82, t appears that the actual recepts nto the Treasury, durng the year endng on the 30th of September, 82, ncludng a porton of the loan, and the ssue of Treasury notes, amounted to the sum of $6,782,59 40; (almost double the amount of the prevous estmate;) and that the actual dsbursements for the same year amounted to the sum of $8,368,325 7, (whch was, also, almost double the amount of the prevous estmate,) ndependent of the balances n the Treasury at the commencement and the close of the year. (5) But the estmates for the year 83 requred, on account of the accumulatng expendtures, a sum of $3,9. For the Cvl and Dplomatc Departments, For the Mltary Department, - $,500,000-7,000,000 For the Naval Department, - 4,9 And for the nterest and rembursement of the prncpal of the publc debt, - 8,500,000 And the subsstng revenue to meet these expendtures was estmated at the sum of $2,000,000, proceedng From the customs, - From the sales of publc lands, &c., -,500, ,000 $3,9 2,000,000 Leavng a defct, for whch t was proposed to provde, st. by the outstandng balances of the authorzed loan and ssue of Treasury notes; and 2d. by a new authorty to borrow, and to ssue Treasury notes to the amount of $9,9 Durng the sesson of Congress, whch commenced n November, 82, and closed on the 3d of March, 83, the appropratons for the army, the nav}', and other branches of the publc servce, were consderably augmented; but, wthout advertng to the mposton of a small duty upon mported ron-wre, (6) no new source of revenue was then opened, but addtonal ad was extended to the Treasury by authorzng a repetton of the appeal to publc credt.. An authorty was gven to rase, by loan, a sum not exceedng $6,000,000, and to create stock for the amount, bearng nterest not exceedng the rate of sx per cent, per annum, and rembursable at any tme after the expraton of twelve years, from the st of January, 84. The payment of the nterest, and the redempton or purchase of ths stock are charged upon the snkng fund. (7) 2. And an authorty was gven to ssue Treasury notes for a sum not exceedng $5,000,000 absolutely; wth a provsonal authorty to ssue an addtonal sum of $5,000,000, to be deemed and held to be a part of the loan of $6,000,000, authorzed as above stated to be rased. The notes were to bear nterest at the rate of 5 - per cent. per annum, to be rembursable at such.places, respectvely, as should be expressed on the face of them, one year after the day on whch they should be ssued; to be recevable n payment of all dutes and taxes lad by the Unted States, and all publc lands sold by ther authorty; and the payment of the nterest, and the redempton or purchase of these notes were charged, lke the funded debt, upon the snkng fund. (8) () See the act of the 25th March, 804, 7 vol.'l33, the 3st January, 82, vol. 28, and the act of the 27th of February, 83, vol. 40. (2) See the act of the st of July, 82, vol. 26. (3) See the act of the 4th of March, 82, vol. 72. (4) See the act of the 30th of, 82, vol (5) See the annual report of the Secretary of the Treasury, dated the st of December, 82.4 (6) See the act of the 25th of February, 83, vol (7) See the act of the 8th of Feb., 85, vol (8) See the act of the 25th of February, 83, vol. 377.

3 85.] STATE OF THE FINANCES. 3 The necesstes of the Treasury becomng, however, more urgent, and the relance on the publc credt becomng more hazardous, Congress determned, at a specal sesson, whch commenced n, 83, to lay the foundaton of a system of nternal revenue; selectng, n partcular, those subjects of taxaton whch were recommended by the experence of a former perod, and computng ther general product at the sum of 5,000,000. () The contnuance of these taxes beng lmted, at frst, to one year after the termnaton of the war, they acqured the denomnaton of the "war taxes;" but, by subsequent laws, almost all the exstng revenues are pledged, wth the fath of the Unted States, to provde for the payment of the expenses of Government, for the punctual payment of the publc debt, prncpal and nterest, accordng to the contracts; and for creatng an adequate snkng fund, gradually to reduce, and eventually to extngush, the publc debt; untl those purposes shall be accomplshed, or untl Congress shall provde and substtute, by law, for the same purposes, other dutes, whch shall be equally productve. In the sesson of, 83. A drect tax of $3,000,000 was lad upon the Unted States and apportoned to the States respectvely for the year 84, and t was afterwards subjected to the general pledge above stated. (2) 2. A duty of four cents per pound was lad upon all sugar refned wthn the Unted States. The contnuance of the duty was lmted to one year after the war; and, as the general pledge has not been appled to t, the duty wll cease on the 7th of February, 86. (3) 3. A duty was lad upon all carrages, for the conveyance of persons, kept by any person for hs own use, or to be let out for hre, or for the conveyance of passengers; whch was graduated accordng to the denomnaton of the carrage, from the yearly sum of 20, to the yearly sum of 2. The contnuance of ths duty was orgnally lmted to the war; but the general pledge has been appled to t, wth some modfcatons n the mode of layng and collectng the duty. (4) 4. A duty was mposed on lcenses to dstllers of sprtuous lquors, whch was graduated accordng to tho capacty of the stll, the tme of employng t, and the materals consumed. The contnuance of ths duty was orgnally lmted to the war; but the general pledge has been appled to t, wth consderable modfcatons n the prncples and provsons of the law. (5) 5. A duty was lad on sales at aucton of.merchandse, and of shps and vessels, at the rate of one per cent, of the purchase money of goods, and of twenty-fve cents for every hundred dollars of the purchase money of shps and vessels. The contnuance of ths duty was orgnally lmted to the war; but the general pledge has been appled to t, wth a consderable addton to the amount, and a modfcaton of the provsons of the law. (6) 6. A duty was lad on lcenses to retalers of wnes, sprtuous lquors, and foregn merchandse, graduated accordng to the place of retalng, and the nature of the artcle retaled. The contnuance of ths duty was orgnally lmted to the war; but the general pledge has been appled to t. (7) 7. A duty was lad on notes of banks, and bankers; on bonds, oblgatons, or promssory notes, dscounted by banks or bankers; and on foregn or nland blls of exchange, above 50, and havng one or more endorsers; graduated accordng to the nomnal amount of the nstrument. The contnuance of ths duty was lmted to one year after the war; and as the general pledge has not been appled to t, the duty wll cease on the 7th of February, 86. (8) But besdes the drect tax and the nternal dutes, there were added to the resources of the Treasury, durng the sesson of, A duty of twenty cents per bushel upon all salt mported from any foregn place nto the Unted States, whch, beng lmted to the war, and not beng ncluded n the general pledge, wll cease on the 7th of February, 86. (9) 9. And an authorty to rase, by loan, a sum not exceedng 7,500,000, and to create stock for the amount, rembursable at any tme after the expraton of twelve years from the st of January, 84. The rate of nterest was not lmted by the law; but t was provded, that no certfcate of stock should be sold at a rate less than eghtyeght per cent., or 88, n money, for 00 n stock. The payment of the nterest, and the redempton or the purchase of ths stock, are charged upon the snkng fund. (0) The sources of the levenue thus opened n 83, could not, however, be expected to ad the Treasury untl 84; and, accordngly, n the annual report from ths Department, dated the 8th January, 84, nether the drect tax, nor the nternal dutes, wll be found as an tem of the actual recepts nto the Treasury, durng the year endng the 30th of September, 83. The amount of those recepts was stated n the proceeds of the customs of the sales of publc lands &c., at 3,568,042 43, and n the proceeds of loans and Treasury notes at 23,976,92 50, makng together 39,907,607 62; and the actual dsbursements of the same perod were stated at 32,928,855 9, ndependent of the balances n the Treasury at the commencement and the close of the year. () But the estmates for the year 84 requred a sum of 45,350,000. For cvl, dplomatc, and mscellaneous expenses, -,700,000 For the payment of nterest on the old and new debt, and the nstalments of the prncpal of the old debt, - 2,200,000 For the Mltary Establshment, - 24,550,000 For the Naval Establshment, - 6,900,000 And the subsstng revenue to meet these expendtures was estmated at the sum of 4,370,000, proceedng From the customs and sales of publc lands, - From the nternal dutes and drect tax, - From a balance of loans and Treasury notes, - 6,600,000 3,500,000 4,270,000 45,350,000 4,370,000 Leavng a defct, for whch t was proposed to provde, st, by a part of the balance n the Treasury, and 2d, by loans and Treasury notes, amountng to - 30,980,000 () See the letter of the Secretary of the Treasury to the charman of the Commttee of Ways and Means, dated January 0, 82, and the report of the actng Secretary of the Treasury, dated 2d, 83. (2) See the acts of the 22d of July, and the 2d August, 83, and 9th January, 85, 2 vol. 53, 35,35. (3) See the act of the 24th July, 83,2 vol. 88. (4) See the acts of the 24th July, 83, and 5th December, 84, 2 vol. 0, 2. (5) See the acts of the 24th July, 83, and 24th December, 84, 2 vol. 05, 8. (6) See the acts of the 24th of July, 83, and 23d December, 84,2 vol. Ill, 26. (7) See the acts of the 2d of August, 83, and 23d December, 84,2 vol. 84, 26. (8) See the act of the 2d of August, 83, 2 vol (9) See the act of the 29th of July, 83,2 vol. 27\ (0) Seethe act of the 2d of August, 83, 2vol () See the annual report of the actng Secretary of the Treasury, dated 8th January, 84.

4 3 3 FINANCE. * [No. 454 For the defct thus approachng the sum of $40,000,000, the only provson made durng the sesson, whch commenced n December, 83, rested agan upon the publc credt.. An authorty was gven to ssue Treasury notes for a sum not exceedng $5,000,000, absolutely; wth a provsonal authorty to ssue an adtonal sum of $5,000,000, to be deemed and held to be a part of any loan whch mght be authorzed durng the sesson. The notes were to bear nterest at the rate of 5f- per cent, per annum; to be rembursable at such places respectvely, as shouldjfbe expressed on the face of them, one year after the day on whch they should be ssued; to be recevable n payment of all dutes and taxes lad by the Unted States, and all publc lands sold by ther authorty; and the payment of the nterest, and the redempton, or purchase of these notes, were charged, lke the funded debt, upon the snkng fund. () 2. And an authorty was gven to rase, by loan, a sum not exceedng $,000, and to create stock for the amount, rembursable at any tme after the expraton of twelve years from the last day of December, 84. Nether the rate of the nterest, nor the prce of the stock was lmted; and the payment of the nterest, and the redempton or the purchase of the stock, are charged upon the snkng fund. (2 ) The embarrassments of the Treasury, after the adjournment of Congress n the year 84 became extreme. It appears (3) that the dsbursements, durng the frst half of that year, had amounted to the sum of $9,693, For the cvl, dplomatc, and mscellaneous expenses, - - $,444, For the Mltary Department, For the Naval Department, For the publc debt,,20, ,02, ,026, And the balance of the appropratons for the same objects of expendture requred, durng the other half of the same year, was stated at the sum of - 27,576,39 9 But the actual recepts nto the Treasury, durng the frst half of the year 84, had amounted to $9,29,946 33, proceedng From the customs, ,82, From the sale of publc lands, (ncludng those n the Msssspp Terrtory, the proceeds of whch are payable to the State of Georga,) , From the nternal dutes and drect tax, - From postage and ncdental recepts, - - From loans, From Treasury notes, - 2,89, , ,679, ,462,00 00 $9,693, ,270, ,29, And t was estmated that there would be receved from the same sources of revenue, (ncludng loans and Treasury notes to the amount of $8,320,000,) durng the other half of the same year, the sum of - ^ 3,60, ,379, To ths amount add the balance of the cash n the Treasury on the st of July, 84, - 4,722, And the estmated aggregate of the funds to meet the demands on the Treasury to the close of the year 84, was the sum of ,02, Leavng a defct for the servce of 84, after absorbng all the cash of the Treasury, amountng to the sum of $0,67,586 9 To supply ths defct of $30,67,586 9, to provde an addtonal sum for the contngences of the year, and to accelerate the fscal measures, whch were essental to the prosecuton of the war n 85, the nterposton of the Legslature was deemed ndspensable. The plan of fnance, whch was predcated upon the theory of defrayng the extraordnary expenses of the war by successve loans, had already become noperatve. The product of the revenues had ceased to furnsh an amount equal to the expendture of the former peace establshment, wth an addton of the nterest upon the debt contracted on account of the war. And the sudden suspenson of spece payments at the prncpal banks establshed n the dfferent States, (however t may be excused, or justfed, by the apparent necessty of the case,) had exposed the Government, as well as prvate ctzens, to all the nconvenences of a varable currency, devod, alke, of natonal authorty and of natonal crculaton. The Treasury could no longer transfer ts funds from place to place; and t became, of course, mpractcable to mantan the accustomed punctualty n the payment of the publc engagements. Under these crcumstances, the Congress was convened by the specal call of the Presdent, n September, 84, when the ctzens of every occupaton and pursut seemed eager to second the legslatve efforts to replensh an exhausted Treasury, and to renovate the publc credt. Commerce contnued to contrbute, perhaps, to the extent of ts capacty. Agrculture, though sufferng the want of a vent for some of ts mportant staples, was every where prepared for the requste exerton. Domestc manufactures, whch had scarcely surmounted the frst struggle for exstence, yelded to the patrotc mpulse; and the captal of ndvduals, n all ts varety of form, offered a ready trbute to releve the necesstes of the country. Thus, durng the sesson whch commenced, n September, 84, and closed on the 3d of March, 85. The followng nternal dutes were ncreased n ther amount; the dutes were rendered permanent, and the general pledge was appled to them: (.) The drect tax was rased to an annual sum of $6,000,000, (4) and t was extended to the Dstrct of Columba. (5) (2.) The duty on carrages was rased, and a duty on the harness was added. (6) (3.) The duty on lcenses to dstllers of sprtuous lquors was contnued, and a duty on the sprts dstlled was added.(7) (4.) The dutes on sales at aucton, and on lcenses to retal wnes, sprtuous lquors, and foregn merchandse were rased. (8) (5.) The rates of postage were rased ffty per cent. (9) () See the actof the 4th of March, 84,2 vol (2) See the act of Jhe 4th of March, 84, 2 vol, 309. (3) Seethe annual report of the Secretary of the Treasury, dated 23d September, 84. (4) See the act of the 9th of Januay, 85,2 vol. 35. (5) See the act of the 27th February, 85,2 vol. 9. (6) Seethe act of the 5th of December, 84,2 vol. 2. (7) See the act of the 2st of December, 84, 2 vol. 8. (8) See the act of the 23d of December, 84,2 vol. 26. (9) See the act last quoted.

5 85.] STATE OF THE FINANCES The followng new dutes were permanently lad, and the general pledge was appled to them. But t was, at the same tme, declared, that so long as the dutes mposed on the artcles of domestc manufacture should contnue to be lad, the dutes then payable on the lke descrpton of goods mported nto the Unted States,'should not be dscontnued or dmnshed. (.) Dutes on varous artcles, manufactured or made for sale wthn tbe Unted States or ther Terrtores, as specfed n the annexed table, marked B. (2.) Dutes on artcles n use, () to wt: On household furnture, the value n any one famly (wth certan exceptons) exceedng $200 n money, accordng to a scale graduated from $ on a value of $400, to $00 on a value of $9,000. On every gold watch kept for use, $2. On every slver watch kept for use, $. But, besdes establshng these sources of revenue, (and others were contemplated at the perod when the treaty of Ghent was announced,) Congress sought to confer upon the Treasury the means of antcpatng the collecton of the dutes, of recoverng the punctualty of ts payments, and of nvtng the co-operaton of the moneyed nsttutons and moneyed men of the Unted States, n plans for restorng a unform and natonal currency., Wth these vews varous measures were sanctoned.. An authorty was gven to rase, by loan, a sum not exceedng $3,000,000, (partcularly destned to provde for the expendtures of the last quarter of the year 84,) and to create stock for the amount, rembursable at any tme after the 3st of December, 84. No lmtaton was prescrbed as to the rate of nterest, or the prce of the stock, but t was declared that, n payment of subscrptons to ths loan or to loans authorzed by any other act of Congress, t should be lawful to receve Treasury notes becomng due on or before the st of January, 85, at ther par value, together wth the nterest accrued. The payment of the nterest, and the redempton, or the purchase of the stock to be thus created, were charged upon the snkng fund, but the act contaned these further assurances: st. That, n addton to the annual sum of $8,000,000, heretofore approprated to the snkng fund, adequate and permanent funds should be provded and approprated durng that sesson of Congress, for the payment of the nterest and the rembursement of the prncpal of the stock; and, 2d, that an adequate and permanent snkng fund gradually to reduce, and eventually to extngush the publc debt contracted durng the war, should also be establshed durngthe same sesson of Congress. (2) 2. An authorty was gven to antcpate the collecton and recept of the dutes on lcenses to dstllers of sprtuous lquors, and on dstlled sprts, by obtanng a loan upon the pledge of the dutes to an amount not exceedng $6,000,000, and at a rate of nterest not exceedng sx per cent, per annum. (3) And a smlar'authorty was gven to rase a lke sum, at the same rate, by the pledge of the drect tax. (4) 3. An authorty was gven to ssue Treasury notes for so much of the sums authorzed to be borrowed under the acts of the 24th of March, and the 5th of November, 84, as had not been borrowed, or otherwse employed n the ssue of Treasury notes; "provded, that the whole amount should not exceed the sum of $7,500,000. And, by the same act, an authorty was also gven to ssue a further sum of $3,000,000, to supply a defcency n the appropratons for the expenses of the War Department. The Treasury notes, ssued under these authortes, were n all respects smlar to the pror ssues of Treasury notes, except that the payment of the nterest, and the rembursement of the prncpal were not, as heretofore, charged upon the snkng fund, but upon any money n the Treasury not otherwse approprated. (5) 4. An authorty was gven to ssue and re-ssue Treasury notes for a sum not exceedng $,000, upon prncples essentally dfferent from the pror ssues. (6) (.) These Treasury notes mght be of any denomnaton. If they were of a denomnaton less than $00, they were to be payable to the bearer, to be transferable by delvery, and to bear no nterest. Ths denomnaton has acqured the desgnaton of " Small Treasury Notes." If they were of the denomnaton of $00 or upwards, they mght conform to the foregong descrpton, or they were to be payable to'order, to be transferable by endorsement, and to bear nterest at the rate of 5 per cent, per annum. Ths denomnaton (of whch only notes for $00, bearng nterest, have been ssued) has acqured the desgnaton of u Treasury notes of the new emsson." (2.) The prncpal and nterest of these Treasury notes are not payable at any partcular tme, but the notes are evey where recevable n all payments to the Unted States. (3.) The holders of " small Treasury notes" may exchange them, at pleasure, n sums not less than $00, for certfcates of funded stock, bearng nterest at seven per cent, per annum, from the frst day of the calendar month next ensung that n whch the notes shall be presented to the Treasury of the Unted States, or to a commssoner of loans, for the purpose of exchange. (4.) The holders of "Treasury notes of the new emsson" may exchange them, at pleasure, n sums not less than $00, for certfcates of funded stock, bearng nterest at sx per cent, per annum, from the frst day of the calendar month next ensung that n whch they shall be presented to the Treasury of the Unted States, or a commssoner of loans. (5.) The stock, thus created by the exchange of Treasury notes of ether denomnaton, s rembursable at any tme after the 3st of December, 824, aud t s charged upon such funds as had been, or should be establshed by law for the payment and rembursement of the funded publc debt contracted snce the declaraton of war. 5. An authorty was gven to rase, by loan, a sum not exceedng $8,452,800, and to create stock fo the amount, rembursable at any tme after the expraton of twelve years from the last day of December, 85. (7) Nether the rate of nterest, nor the prce of the stock was lmted; but t was declared that there mght be receved n payment of subscrptons to the loan, such Treasury notes as were actually ssued before the passng of the act, and whch were made by law a charge on the snkng fund. (8) And the payment of the nterest, and the rembursement on the purchase of the prncpal of the stock are chaged upon the snkng fund. (9) 6. It was declared that any holder of any Treasury notes ssued, or authorzed to be ssued, under any laws prevously passed, mght convert them nto certfcates of funded debt, bearng an nterest of sx per cent, per annum.(0) 7. And t was declaedthat t should be lawful for the Secretary of the Treasury to cause to be pad the nterest upon Treasury notes whch have become due and reman unpad, as well wth respect to the tme elapsed before they became due, as wth respect to the tme that shall elapse after they become due; and, untl funds shall be assgned for the payment of the sad Treasury notes, and notce thereof shall be gven. CI) See tbe act of the 8th of January, 85,2 vol. 65. (2) See the act of the 5th of December, 84, 2 vol. 5. (3) See last secton of the act of the 2st of December, 84, 2 vol. 26. (4) See the last secton of the act of the 9th of January, 85, 2 vol. 56. (5) See the act of the 26th of December, 84, 2 vol. 30. (6"v See the act of the 24th of February, 85, 2 vol. 3. (7) See the act of the 3d of March, 85,2 vol. 45. (8) See the act last quoted, secton 6. (9) Idem, secton 4. (0) See the nnth secton of the act of the 24th of February, 85, 2 vol. 6.

6 3 3 FINANCE. * [No. 454 The progress of expendture and of revenue for the entre perod of the war s thus developed, and, ndependent of the balance of the appropratons for the year 84, whch s transferred to the accounts for the year 85, the subject may be reduced to the followng general abstract: / In 8X2, they amounted to the sum of From revenue, From loans, From Treasury notes, In 83, they amounted to the sum of From revenue, From loans, From Treasury notes, In 84, they amounted to the sum of From revenue, Fom loans, From Treasury notes, THE ACTUAL RECEIPTS OF THE TREASURY. $9,80, ,002, ,835, $4,340,709 20,089, ,094, $,500, ,080, ,297, $22,639, ,524,844 34,878, The aggregate amount of the recepts nto the Treasury, for the three yeas of war, beng the sum of $98,042, THE ACTUAL DISBURSEMENTS OF THE TREASURY. In 82, they amounted to the sum of - For the cvl, dplomatc, and mscellaneous expenses of Government, $,79,360 3 For the mltary servce, (ncludng the Indan Department,) - 2,078, For the naval servce, - 3,9,365 5 For the publc debt, - 4,449, In 83, they amounted to the sum of - For the cvl, dplomatc, and mscellaneous expenses of Government, $,833, For the mltary servce, (ncludng the Indan Department, &c.) 9,802, For the naval servce, - 6,446,600 0 For the publc debt, -,08,23 44 In 84, they amounted to the sum of - For the cvl, dplomatc, and mscellaneous expenses of Government, $2,337,897 3 For the mltary servce, (ncludng the Indan Department, &c.) 20,50, For the naval servce, ' 7,32, For the publc debt, - 8,386, $22,279,2 5 39,90, ,547,95 62 $00,07,557 3 But, as the recepts of the Treasury for the year 85 are derved prncpally from the war revenue and resources, and as ts expendtures arse, also, prncpally from the arrearages of the war demands, t s proper to comprse them, as far as they are ascertaned, n the followng supplemental statement:. The gross recepts of the Treasury for 82,83, and 84, amounted, as above stated, to the sum of $98,042, The recepts of the Treasury for 85, to the 30th of September last, cannot be precsely stated, as the accounts to that tme ae not yet actually made upj but they are estmated to have amounted to the sum of - From revenue, - $2,400, ,372, From loans, -,034, From Treasury notes, - 5,938, $39,372, The aggregate of the recepts of the Treasury from the st of January, 82, to the 30th of September, 85, beng the sum of $37,44, The gross dsbursements of the Treasury for 82,83, and 84, amounted, as above stated, to the sum of - $00,07,557 3 The dsbursements of the Treasury for 85, to the 30th of September last, amounted to the sum of For the cvl, dplomatc, and mscellaneous expenses, - $2,537, ,686,323 8 For the mltay sfcrvce, &c. - 5,90,44 7 For the naval servce, &c ,050, For the publc debt, - 8,909,78 22 $33,686,323 8 The aggregate of the dsbusements of the Teasury fom the st of January, 82, to the 30th of September, 85, beng the sum of $33,703,880 3 It wll be natural here to nqure nto the general effects of the war upon the publc debt of the Unted States; and the annexed table, marked C, exhbts a detaled statement of the unsatsfed amount, on the st day of Januay, annually, from the year 79 to the year 85, both nclusve. The subject, however, may be placed dstnctly n the followng pont of vew, upon estmates referrng to the date of the 30th of Septembe, 85. OF THE PUBLIC DEBT.. The amount of the funded debt contracted before the late war, whch remaned unsatsfed on the 30th of September, 85, may be stated at the sum of $39,35,484 96, to wt: (.) In old sx per cent, stock, the nomnal amount beng - - $7,350,87 39 And the amount rembursed beng - 3,467,587 00

7 85.] STATE OF THE FINANCES. 7 Balance due on the 30th of September, 85, (2.) In deferred sx per cent, stock, the nomnal amount beng And the amount rembursed beng - Balance due on the 30th of September, 85, (3.) In three per cent, stock, - (4.) In exchanged sx per cent, stock, under the act of 82, (5.) In sx per cent, stock of 796, - (0.) In Lousana sx per cent, stock, ~ $9,358, ,52, $3,783, ,205, ,58, ,984, ,923, Balance on the 30th of September, 85, of the whole of the publc debt contracted before the war, - $39,35, The amount of the funded debt contracted on account of the late war, on the 30th of September, 85, may be stated at the sum of $63,44,972 50, to wt: (.) In sx per cent stock of 82, (the $,000,000 loan,) authorzed by the act of the 4th of March, 82, obtaned at par, and not rembursable before the year 825, (2.) In sx per cent, stock of 83, the ($6,000,000 loan,) authorzed by the act of the 8th of February, 83, obtaned at the rate of $88 n cash for 800 n stock, and not rembursable before the year 826, (3.) In sx per cent, stock of 83, (the $7,500,000 loan,) authorzed by the act of the 2d of August, 83, obtaned at the rate of $88 25 n money for $00 n stock, and not rembursable before the year 826, - (4.) In sx per cent, stock of 84, (whch arose from loans n parts of a sum ot 8,000, called the $0,000,000 loan and the $6,000,000 loan,) authorzed by the act of the 24th of March, 84, obtaned at dfferent rates, and not rembursable before 827* to wt: $2,292,888 90, at 80 per cent, stock, 40,80 00, at 85 per cent. do. 43,222 22, at 90} per cent. do. 74,590 75, at 90 per cent. do. $2,55,5 87 $5,366, 2 65, , , (5.) In sx per cent, stock of 85, (the $2,000,000 loan,) authorzed by the act of the 3d of March, 85, obtaned at dfferent xates, payable n Treasury notes, or n cash, and not rembursable before 827, to wt: $7,924,29 59, at per cent, stock, - - $8,34,283 77,047,846 30, at 96 per cent. do. - -,085, ,978 49, at 97 per cent do , ,000 00, at 98 per cent do, , ,000 00, at par do , (6.) In seven per cent, stock of 85, created by fundng Treasury notes not bearng nterest, ssued part at par, and part upon an advance, under the act of the 24th of February, 85, and not rembursable untl 825, - $7,860, ,09, ,498,58 5,66, ,745, ,268, Estmated amount of the whole of the funded publc debt n reference to the late war, - $63,44, The amount of the floatng debt contracted snce the commencement of the late war, calculated to the 30th of September, 85, may be stated at the sum of $7,355,0, to wt: (.) The aggregate of Treasury notes ssued under the authorty of the several acts of Congress passed pror to the act of the 24th of February, 85, amounted to the sum of $20,20,600 00, to wt: Payable n 84, but unpad, - $2,799, Payable n 85, but unpad, - 7,847, Payable n 86, but unpad, - 2,772, Payable also n 86, (ssued under the specal authorty of the act of the 26th of December, 84,) but unpad, - - 8,38, $2,737, Deduct the amount rembursed n 85, at Phladelpha, Baltmore, Washngton, Charleston, and Savannah,) ,536, Of ths aggregate there has been subscrbed n prncpal and nterest to the loan of 85, about the sum of $4,53, From whch deductng an average estmate of near one yea's nterest, about the sum of , There wll reman for the amount of prncpal subscrbed to the loan, about the sum of $4,35, And t s estmated that there has been pad on account of dutes and taxes to the collectors of the customs, the nternal dutes, and the drect tax, about the_ sum of.... -,200, Outstandng amount of Treasury notes bearng nterest at 5 per cent, per annum, about the sum of (2.) The aggregate of small Treasury notes ssued and ressued under the act of the 24th Februay, 85, amounts to about the sum of - $4,42, Of ths aggregate there has been funded for seven per cent, stock, ncluded n the foregong statement of the funded publc debt, about the sum of - $3,268, And there has been pad on account of dutes and taxes, about the sum of , ,38, Outstandng small Treasury notes, about the sum of - (3.) The aggregate of Treasury notes of the new emsson, ssued under the act of the 24th February, 85, amounts to about the sum of $20,20, ,55, ,686, , ,600 00

8 3 FINANCE. * [No. 454 Leavng the amount of floatng publc debt, n Treasury notes, on the st of October, 85, about the sum of But to ths amount of the publc floatng debt, n Treasury notes, there must be added the followng temporary loans, to wt: (.) A temporary loan, made by the State Bank of Boston n 82, payable the 5th and 3st of December, 84, but unpad, - - $500, (2.) A temporary loan, made by the Cumberland Bank n 82, payable the 5th of November, 87, - 50, (3.) A temporaty loan, made by the Bank of the State of South Carolna, n 84, payable the st of December, 85, , (4.) A temporary loan, made by the Mechancs' Bank of New York n 85, payable when demanded, - 200, (5.) A temporary loan, made by the State of New York, payable n the year 87, 350, Makng the aggregate amount of the floatng publc debt about the sum of $6,205,0 00,50, $7,355,0 00 RECAPITUL ATIO N.. The amount of the unsatsfed funded publc debt, contracted before the war, on the 30th of September, 85, was the sum of - ' 2. The amount of the funded publc debt contracted, n reference to the late war, on the same day, the sum of - $63,44, The amount of the floatng publc debt, contracted snce the war, was, on the same day, the sum of ,355,0 00 Total of the ascertaned amount of the publc debt created snce the war, to the 30th of September, 85, - $39,35, ,500, Total amount of the natonal debt on the 30th of September, 85, - $9,635, It s proper to remark, that the aggregate of the natonal debt thus stated to the 30th of September, 85, s subject to consderable changes and addtons. The floatng debt n Treasury notes s convertble, at the pleasure of the credtors, nto funded debt; and, ndependent of a drect applcaton of the current revenue to dscharge the Treasury notes, as well as the temporary loans, there must be a great, though gradual reducton of the floatng debt, by the payments made n Treasury notes, for dutes, taxes, and publc lands. There are, ndeed, some clams known to exst for loans, supples, and servces, durng the late war, whch have not been lqudated, or are not embraced by exstng appropratons; and doubtless there are other legal and equtable clams whch have not yet been brought nto vew, n any form, at the accountng departments, but whch may eventually receve the sancton of Congress. It s not, however, wthn the scope of any estmate htherto made, to state ~the probable addton to the funded debt, under all crcumstances, at moe than $7,000,000, whch would consequently place the aggregate of the funded debt, created n consequence of the war, at a sum not much exceedng $70,000,000. But t may be mportant to recollect, that the war debt has not been entrely ncurred for objects lmted to the contnuance of the war; and that the mltary and naval establshments n partcular have derved durable advantages from the expendtures of the Treasury. For the payment of the nterest, and the rembursement or gradual extngushment of the natonal debt, the resources of the Treasury are abundant, although the state of the crculatng medum (whch wll be more partcularly consdered hereafter) has rendered t mpractcable to obtan at all tmes, upon reasonable terms, the local currency of some of the places apponted for the dscharge of the publc engagements. These resources depend upon the snkng fund, connected wth the fath of the Unted States, whch s pledged to supply from the exstng, or from other subjects of revenue, the defcences of that fund. THE SINKING FUND. The publc debt amounted, on the st of January, 79, to the sum of $75,463,476 52, and t conssted Of the foregn debt, 2,82,82 92 Of the domestc debt, 62,650, $75,463, The foregn debt experenced varous changes n form and n amount. From 792 to 7 t rose above the amount stated for 79, but from that perod t was gradually reduced; and on the st of January, 80, t stood at the sum of $0,49,000. From the year 80, however, the annual reducton was more rapd; and n the year 80 the foregn debt became extnct. The domestc debt has also experenced varous changes n form and amount. It was orgnally stpulated that t should be subject to redempton by payments, not exceedng n one year, on account both of prncpal and nterest, the proporton of eght dollars upon one hundred dollars of the stock;(l) and when the snkng fund was consttuted and organzed,, provson was made for effectng the payments n that proporton, untl the whole debt should be extngushed by dvdends payable on the last days of March,, and September, n each year, at the rate of on6 and a half percent., and, on the last day of December, n each year, at the rate of three and a half per cent, upon the orgnal captal.(2) Durng the frst perod of about ten years, from 79 untl the st of January, 80, the amount of the domestc debt never fell below the sum whch has been stated; and n 80 t stood at about the sum of $72,69, The augmentaton, created on account of the purchase of Lousana, (amountng to $5,000,000,) rased the captal of the domestc debt, n 804, to the sum of $80,69,20 88; but from that perod there was a consderable annual dmnuton of the amount, untl t was reduced on the 30th of September, 85, to the already specfed sum of $39,35, The snkng fund, by whose operatons these benefcal effects have been produced, may be regarded as coeval wth the organzaton of the present Government; but t has undergone many mportant modfcatons. 3. The early appropratons of the revenue were confned to the payment of the nterest and nstalments of the foregn debt, and to the payment of the nterest of the domestc debt; but so early as the 4th of August, 790, the proceeds of the sales of the publc lands n the western terrtory were permanently and exclusvely approprated () See the 4th secton of the act of the4th of August, 790, vol (2) See the act of the 28th Aprl, 796, volume 3, 298.

9 85.] STATE OF THE FINANCES. 9 and pledged towards snkng and dschargng the debts for whch the Unted States were then holden. () The annexed table, D, wll exhbt a statement of the quantty of the publc lands whch have been annually sold, and of the proceeds of the sales, as far as can be now ascertaned. 2. In the year 792, however, commssoners were desgnated and authorzed to purchase the publc debt at ts market prce, not exceedng the par value, and the nterest of the debt purchased, together wth the surplus of certan other appropratons, was assgned for that purpose. (2) When the annual amount of tbe fund thus created should be equal to two per cent, on the sx per cent, stock, t was drected to be frst appled to the redempton of that stock, accordng to the rght reserved, and then to the purchase, at ts market prce, of any other publc stock. 3. In the year 7 " the snkng fund" was establshed by name; (3) ts resources were vested n the same commssoners, and ts operatons were subjected to ther drecton and management. The duty of the commssoners, ndependent of temporary objects, conssted n applyng the snkng fund, st, to the payment of the sx per cent, stock, at the stpulated rate of eght per cent, per annum; 2d, to the payment of the deferred stock after the year 80, accordng to the same stpulated; and, 3d, f any surplus remaned, towards the further and fnal redempton of the publc debt, of every denomnaton. For the accomplshment of these purposes there were permanently approprated and pledged, n addton to the other moneys consttutng the snkng fund, and the nterest of the amount of the purchased or redeemed debt, st, a suffcent sum arsng yearly, and every year, from the dutes on mports and tonnage, and the duty on domestc dstlled sprts and stlls, as mght be rghtfully pad of the prncpal of the sx per cent stock, commencng on the st of January, d. The dvdends on the publc shares n the Bank of the Unted States; but the shares were sold n 796 and 802, under an authorty gven n 7. 3d. The nett proceeds of the sales of publc lands n the Western terrtory. 4th. Moneys receved nto the Treasury on account of old debts. 5th. The surpluses of revenue beyond the amount of the appropratons. 4. Such was the outlne of the snkng fund, when, on the 6th of Aprl, 802, (4) the nternal dutes were repealed; and, on the 29th of Aprl, 802, a new and addtonal provson was made for the redempton of the publc debt. Thus, an annual sum of $7,300,000 was permanently approprated and vested n the Commssoners of the Snkng Fund, to be produced, st, by the moneys (other than the surpluses of revenue) whch then consttuted the fund, or should arse to t by vrtue of any prevous provsons. 2d. By the sums annually requred to dscharge the nterest and charges of the publc debt; and, 3dly. By so much of the dutes on merchandse and tonnage as would be necessary, together wth the precedng resources, to complete the annual nvestment of $7,300,000. The act not only placed the rembursement of the prncpal, but also the payment on account of nterest and charges of the publc debt, under the superntendence of the commssoners; makng t ther duty to cause the fund to be appled n payment, st, of such sums as by vrtue of any acts they had prevously been drected to pay; 2d, of such sums as may be annually wanted to dscharge the nterest and charges accrung on any other part of the then debt of the Unted States. 3d. Of such sums as may be annually requred to dscharge any nstalment of the prncpal of the then debt; and 4th, as to any surplus, to apply t towards the further and fnal redempton, by payment or purchase of the then debt. (5) The act of the 0th of November, 803, havng created sx per cent, stock to the amount of $,250,000, n pursuance of the conventon for the purchase of Lousana, added an annual sum of $700,000 to the snkng fund, to be pad put of the dutes on merchandse and tonnage, and to be appled by the commssoners to the payment of the publc debt, ncludng the Lousana stock, In the manner above stated. It may be added, that the nterest on the Lousana stock s payable n Europe; but the prncpal s rembursable at the Treasury of the Unted States, n four annual nstalments, commencng n 88. (6) It s obvous that a snkng fund of $8,000,000 (ndependent of the general pledges n pror laws) was ample for the payment of the nterest and* the prncpal of the publc debt, amountng only to the sum of $86,000,000, extngushng the sx per cent, stock n 88, the deferred stock n 824, and the Lousana stock n 822, as fast as the terms of the contracts and the polcy of Government would permt. The general operaton of the fund, ndeed, has been shown; but t s proper more partcularly to add, that, ol the st of January, 85, thee had been transferred to the credt of the commssoners," n the books of the Treasury, an amount of publc debt equal to the sum of $33,873,463 98, of the followng denomnatons, to wt:. FOREIGN DEBT. Three per cent stock, Four and a half per cent, stock, Four per cent stock, 2. DOMESTIC DEBT. $8,200, , , $2,200, Sx per cent, stock, Three per cent, stock, Deferred sx per cent stock, Eght per cent, stock, Exchanged sx per cent stock, Commuted sx per cent, stock, Four and a half per cent, stock, Fve and a half per cent stock, Navy sx per cent stock, Lousana sx per cent, stock, Sx per cent- stock of 8*2,,946, ,555 4,005, ,482, ,294,05 2,859, ,000 00,848, , , , ,673, $33,873, But the charges upon the snkng fund have accumulated, n consequence of the late war, to an amount whch t has not the capacty to defray; whle ts operatons, n other respects, have been obstructed by the temporary falure of the revenue arsng from dutes ol merchandse and tonnage, and the protracted embarrassments of the crculatng medum: thus, *. The annual appropraton for the snkng fund amounts to $8,000,000, and conssts at present: (.) Of the nterest on such parts of the publc debt as have been rembursed or pad off, (whch, however, s tself derved from the customs,) estmated on the 30th of September, 85, at the sum of $,969, () See the 22d secton of the act of the 4th of August, 790, vol (2) See the act of the 8th of, 792, 2 vol. 5. (3) See the act of the 3d of March, 7, 3 vol. 22. (4) See the act of the 6th of Aprl, 802, 6 vol. 58. (5) See the act of the 29th of Aprl, 802, 6 vol. 03. (6) 7 vol C

10 3 3 FINANCE. * [No. 454 (2.) Of the nett proceeds of the sales of the publc lands, exclusve of lands sold n the Msssspp Terrtory, (whch as yet belong to the State of Georga,) estmated annnally at the sum of , (3.) Of the proceeds of dutes on mports and tonnage, to complete the annual nvestments, estmated at the sum of 5,230, $8<000» The annual charge upon the snkng fund estmated for 86, wll amount probably to the sum of $4,524,200. On account of the nterest and the nstalments of the old debt, the sum of $3,460, On account of the nterest of the new debt, computed on a captal of $70,000,000 00, about the sum of ,200, On account of the prncpal and nterest of the Treasury notes, ssued under the act of the 30th of, 82, the 25th of February, 83, and the 4th of March, 84, (after allowng for the amount rembursed, subscrbed to the loan, and pad for dutes,) about the sum of ~ ,864, ,524, Defct n the amount of the snkng fund, compared wth the charges upon t, estmated for 86, $6,524, From ths vew of the fnancal operatons of the Government the Secretary of the Treasury, wth every sentment of deference and respect, presents the followng general conclusons for the consderaton of Congress:. That the exstng revenue of the Unted States arses, st, from dutes on mported merchandse, and the tonnage of vessels^ 2d, nternal dutes, ncludng the drect tax upon lands, houses, and slaves; and, 3d, the proceeds of the sales of publc lands; but some of these dutes and taxes are permanently mposed, and some are lmted n ther duraton. 2. That the followng dutes or taxes are ether partally or wholly lmted n ther duraton:. The dutes on merchandse and tonnage wll be reduced one-half on the 7th of February, 86, except such as are mposed on goods of the lke descrpton wth the artcles of domestc manufacture, on whch dutes have been lad, and ncluded n the general pledge. 2. The new duty on salt; the duty on sugar refned wthn the Unted States; and the stamp duty on bank notes, promssory notes dscounted, and on blls of exchange, are not ncluded n the general pledge, and wll wholly cease on the 7th of February, That the followng dutes or taxes are not lmted n ther duraton, and are ncluded n the general pledge:. The drect tax upon lands, houses, and slaves. 2. The dutes upon lcenses to dstllers of sprtuous lquors and upon the lquors dstlled. 3. The duty upon lncenses to retalers of wnes, sprtuous lquors, and foregn merchandse. 4. The duty upon sales at aucton. 5. The duty upon carrages and harness. 6. The dutes upon household furnture and watches. 7. The dutes on artcles manufactured or made for sale wthn the Unted States. 8. The rate of postage. 4. That the fath of the Unted States, and the revenue arsng from the dutes and taxes, whch are not lmted n ther duraton, are pledged for the punctual payment of the publc debt, prncpal and nterest, accordng to the terms of the contracts respectvely; and, for creatng an adequate snkng fund, gradually to reduce, and eventually to extngush the debt. But ths pledge wll be satsfed by the substtuton of other adequate dutes or taxes; #and the ncrease n the proceeds of the dutes on merchandse, subsequent to the pledge, affords an advantageous opportunty of makng such substtuton n respect to the more nconvenent and burdensome porton of the nternal dutes. 5. That the establshment of a revenue system, whch shall not be exclusvely dependent upon the supples of foregn commerce, appears, at ths juncture, to clam partcular attenton. II. A VIEW OF THE FINANCES FOR 85, WITH ESTIMATES OF THE PUBLIC REVENUE AND EXPENSES FOR 86. At the close of the last sesson of Congress the demands upon the Treasury were nterestng n ther nature, as well as great n ther amount. Exclusvely of the ordnary expenses of the Government, they conssted of demands for the payment of the army, preparatory to ts reducton to the peace establshment, wth other very heavy arrearages and dsbursements n the War t and Navy Departments; for the payment of the dvdends on the funded debt, and of the arrearages, as well as the accrung clams on account of the Treasury note debt; and for the payment of the Lousana dvdends, wth other consderable debts contracted n Europe n consequence of the late war. The effcency of the means whch were possessed for the lqudaton of these demands depended upon crcumstances beyond the control of the Government. The balance of money n the Treasury conssted of bank credts, lyng chefly n the Southern and Western sectons of the Unon. The revenue proceedng from the provson made pror to the last sesson of Congress was, comparatvely, of small amount. The revenue proceedng from the provson made durng that sesson could not he avalable for a great porton of the present year; and, n both nstances, the revenue was payable n Treasury notes, or t assumed the form of bank credts, at the respectve places of collecton. The only remanng resources for mmedate use were an addtonal ssue of Treasury notes, and a loan; but the successful employment of these resources was rendered for some tme doubtful, by the pecular stuaton of the credt and currency of the naton. The suspenson of spece payments throughout the greater porton of the Unted States, and the consequent cessaton of the nterchange of bank notes and bank credts, between the nsttutons of the dfferent States, had deprved the Treasury of all the facltes of transferrng ts funds from place to place; and a proposton whch was made, at an early perod, to the prncpal banks of the commercal ctes, on the lne of the Atlantc, wth a vew, n some degree, to restore those facltes, could not be effected, for the want of a concurrence n the requste number of banks. Hence t has happened (and the duraton of the evl s wthout any postve lmtaton) that, however adequate the publc revenue may be, n ts general product, to dscharge the publc engagements, t becomes totally nadequate n the process of ts applcaton, snce the possesson of publc funds n one part no longer affords the evdence of a fscal capacty to dscharge a publc debt n any other part of the Unon. From the suspenson of spece payments, and from varous other causes, real or magnary, dfferences n the rate of exchange arose between the several States, and even between the several dstrcts n the same State; and the embarrassments of the Treasury were more and more ncreased, snce Congress had not sanctoned any allowance on account of the rate of exchange; and the amount of the legslatve appropratons was the same, wherever the legslatve objects were to be effected. But the Treasury notes partook of the nequaltes of the exchange n the transactons of ndvduals, although the Treasury could only ssue them at ther par value. The publc stock, created n consderaton of a loan, also partook of the nequaltes of the exchange, although to the Government the value of the stock created, and the oblgaton of the debt to be dscharged, were the same, wherever the subscrpton to the loan mght be made.

11 85.] STATE OF THE FINANCES } Thus, notwthstandng the ample revenue provded and permanently pledged for the payment of the publc credtor, and, notwthstandng the auspcous nfluence of peace upon the resources of the naton, the market prce of the Treasury notes, and of the publc stock, was every where far below ts par or true value, for a consderable perod after the adjournment of Congress; vbratng, however, wth a change of place, from the rate of 75 to the rate of 90 per cent. Payments n bank paper were unversally preferred, durng that perod, to payments n the paper of the Government; and t was a natural consequence that wherever the Treasury faled n procurng a local currency, t faled also n makng a stpulated payment. Under these extraordnary and perplexng crcumstances, the great effort of the Treasury was, st. To provde promptly and effectually for all urgent demands, at the proper place of payment, and to the requste amount of funds. 2d. To overcome the dffcultes of the crculatng medum, as far as t was practcable, so that no credtor should receve more, and no debtor pay less, n effectve value, on the same account, than every other credtor, or every other debtor. And, 3d. To avod any unreasonable sacrfce of the publc property, partcularly when t must also be attended wth a sacrfce of the publc credt. It was not expected that ths effort would every where produce the same satsfacton, and the same results; but the belef s entertaned that t has been successful n the attanment of ts objects, to the extent of a just antcpaton. OF THE ISSUES OF TREASURY NOTES. The Treasury notes, whch were ssued under acts passed pror to the 24th of February, 85, were, for the most part, of a denomnaton too hgh to serve as a current medum of exchange, and t was soon ascertaned that the small Treasury notes, fundable at an nterest of 7 per cent., though of a convenent denomnaton for common use, would be converted nto stock almost as soon as they were ssued. Wth respect to the frst descrpton, therefore, the ssue has not been restraned; but wth respect to the second descrpton, the ssue has been generally lmted to cases of pecular urgency; such as the payment of the army, preparatory to ts reducton; the payment of the dvdends on the publc debt where the local currency could not be obtaned; and the payment of an nconsderable amount of mscellaneous clams, apparently enttled to dstncton. The annexed table, marked E, contans a statement of the amount of the small Treasury notes whch had been ssued on the 30th of September, 85, from whch t appears,. That there had been ssued, for the payment of the array, the sum of $,465, That there had been ssued, for tbe payment of the dvdends of the publc debt, the sum of -,203,00 3. That there had been ssued, for sundry mscellaneous clams, the sum of ,68 4. That there has been sold at an advance, (producng $32,07 64,) for the purpose of rasng funds to meet the general engagements of the Treasury, a sum of - -,365,000 $4,42,850 OP THE LOAN.' The act of the 3d March, 85, authorzed a loan for a sum not exceedng $8,452,800. It was made lawful to accept, n payment of subscrptons, such Treasury notes as had been charged on the snkng fund; and a commsson, not exceedng one quarter of one per cent., was allowed for sellng the certfcates of stock, or procurng subscrptons to the loan. Under ths authorty the annexed notce, marked F, dated the 0th of March, 85, was publshed, openng a loan for the sum of $2,000,000, wth^ a vew, st, to absorb a porton of the Treasury note debt; 2d, to obtan funds for payng the unsubscrbed arrearages of that debt; and, 3d, to ad the Treasury wth a supply of the local currences of dfferent places, n some proporton to the probable amount of the local demands. The offers to subscrbe to the loan pror to the 9th of Aprl, 85, placed (as t was proper to place) money and Treasury notes upon the same footng; but the offers vared essentally n the terms and condtons that were annexed to them; and, n pont of fact, no drect offer was made to subscrbe at a hgher rate than 89 per cent., whle some of the offers were made at a rate even lower'than 75 per cent Upon ths experment, therefore, t was seen at once that the new stuaton of the Treasury requred a new course of proceedng, and that nether the justce due to the equal rghts of the publc credtor, nor a fal estmate of the value of the publc property, nor an honorable regard for the publc credt, would permt the loan4o assume the shape and character of a scramble, subservent to the speculatons, whch create what s called a maket prce, and shftng n every town and vllage of every State, accordng to the arbtrary varatons of what s called the dfference of exchange. In ths vew of the subject all the offers of subscrpton to the loan, made n the frst nstance, were declned; but t was declared, at the same tme, that offers at the rate of per cent.- would be accepted. The rate thus proposed was adopted upon a consderaton of the value of the stock, of the equtable as well as legal clam of the holders of Treasury notes, and of the real condton of-the publc credt. The objects of the loan beng (as already stated) to absorb a porton of the Treasury note debt, and to acqure a suffcency of local currency for local purposes, the prce of the stock at the Treasury was, of course, ndependent of the daly up and down prces of the varous stock markets n the Unon, and could only be effected by the progress towards the attanment of those objects. Thus, whle the wants of the Treasury were nsuffcently suppled, offers to subscrbe were freely accepted, and the partes were sometmes authorzed and nvted to ncrease the amount of ther offers; but, where local funds had so accumulated as to approach the probable amount of the local demands, the prce of the stock was rased at the Treasury; and when the accumulaton was deemed adequate to the whole amount of the local demands, the loan was closed. The polcy of the course pursued at the Treasury was soon demonstrated. Offers of subscrpton to the loan, at the rate of per cent., payable n Treasury notes or n money, were pesented to a large amount soon after the rule of the Treasury was declared; and the annexed table, marked G, wll exhbt the progressve and actual state of all the subscrptons to the 30th of September last. In the Dstrct of Columba the money subscrptons (ncludng the subscrpton of certan lqudated clams upon the Treasury) were, successvely, at, 96J, 97, and 98 per cent., and fnally at par. In the cty of Baltmore the money subscrptons have been at and 96J per cent. In the cty of Phladelpha the money subscrptons have been entrely at per cent. The prce was rased at the Treasury from to 98 per cent, on the 8th of, (subject, of course, to all unexecuted subscrptons prevously accepted or authorzed,) and snce that tme consderable offers have been receved at and 96 per cent., but none have been receved at the ncreased rate of 98 per cent. The subscrptons, payable n Treasury notes, have been made n all places at the same rate of per cent. A general abstract of the state of the loan may, therefore, be reduced to the fou lowng form:

12 3 3 FINANCE. * [No. 454 In the Dstrct of Columba the subscrptons have amounted-. In money, to the sum of 2. In Treasury notes, to the sum of In Baltmore the subscrptons have amounted-. In money, to the sum of 2. In Treasury notes, to the sum of In Phladelpha the subscrptons have amounted. In money, to the sum of 2. In Treasury notes, to the sum of In New York the subscrptons have amounted-. In money, to the sum of 2. In Treasury notes, to the sum of In Rhode Island the subscrptons have amounted, n Treasury notes, to the sum of In Massachusetts the subscrptons have amounted, n Treasury notes, to the sum of In New Hampshre the subscrptons have amounted, n Treasury notes, to the sum of In North Carolna the subscrptons have amounted, n Treasury notes, to the sum of $2,282, , $,994,88 50 '608,66 90 $,845,000 00,260, ,37 6 $2,539, ,603, ,05, , , , ,386 20, $9,284, Havng thus absorbed a porton of the Treasury note debt, and deemng the Treasury to be possessed of a suffcent supply of the local currency of the places at whch the Treasury notes, unsubscrbed and n arrears, were payable by law, except n the ctes of New York and Boston, the Secretary of the Treasury proceeded to assgn funds for the payment of the Treasury notes, and to gve notce thereof n the form of the annexed copes, (marked, respectvely, H and I,) n pursuance of the act of Congress, passed on the 3d of March, 85. As a suffcent supply of the local currences of Boston and New York had not been obtaned, the overture was made n the same notce to dscharge the Treasury notes payable n those ctes, and n arrears, by acceptng them n subscrpton to the loan, at the rate of per cent., by exchangng them for other Treasury notes, n whch the nterest due should be ncluded as prncpal, or by gvng drafts for the amount upon any of the banks n whch the Government possessed funds. Ths overture s stll open to the consderaton and acceptance of the holders of the Treasury notes n queston, and has been accepted, n the shape of subscrptons to the loan, to a consderable extent. Snce the 30th of September these amounts, ncludng some subscrptons, the detals of whch have not yet been completed, to more than $2,000,000. OP THE TRANSFER OF BALANCES OF APPROPRIATIONS AND OF REVENUE FROM 84 TO 85. In the admnstraton of the fnance's t has been the practce to consder the demands and the supples of each year as dstnct subjects for legslatve provson, ndependent of the balances of appropratons or of revenue exstng at the close of the precedng years. The same course wll now be pursued, but wth a few explanatory remarks. The annual appropratons have never been entrely absorbed durng the year for whch they were made; and the credt gven by law for payments n every branch of the revenue, necessarly ntroduces a dscrmnaton between the amount of dutes whch accrues wthn the year, as a debt to the Government, and the amount whch s pad wthn the year, as money nto the Treasury. The annual appropratons, however, are not charged upon the revenue of the year specfcally n whch they are made; and, n pont of fact, they are satsfed whenever demanded, out of any unapproprated money n the Treasury, wthout reference to the tme when the revenue accrued, or when the money was actually leceved at the Treasury. The nconvenence of contnung appropratons n force, whch were lable to be drawn from the Treasury durng any ndefnte perod, nduced Congress to enact, n the year 7,* that any appropratons (except permanent appropratons for the nterest of the funded debt, or appropratons for the payment of loans and the accrung nterest, fpr the snkng fund, and for purposes whch specally requre, by law, a longer duraton) remanng unexpended for more than two years after the expraton of the calendar year n whch the act of appopraton was passed should cease and determne; and that the unexpended sum should be carred to an account on the books of the Treasury, to be denomnated " the Surplus Fund." By the operaton of ths provson, no ordnary appropraton can now survve the specfed perod of two years; and, notwthstandng the formal desgnaton of a partcular account n whch the entry shall be made, the sum dsengaged by the determnaton of each appropraton, becomes agan an undstngushable part of the publc treasure, whch s subject to tlje future dsposton of the Legslature. Wth these remarks t wll be useful, for the purpose of general nformaton, to exhbt the gross amount of the balances of the appropratons for the year 84, transferred to the year 85, wthout enterng nto a comparatve detal of the appropratons and of the revenues durng the partcular year n whch the appropraton were made by law. Thus The gross amount of the appopratons for 84, ncludng the aggregate of the balances of the appropratons for the year 83, amounted to the sum of Of ths there was pad, on or before the 3st of December, 84, the sum of - $38,028, $55,978, And, on the st ot January, 85, there was carred to surplus fund the sum of 592, Leavng, as a general balance of the appropratons of 84, - 38,620,540 3 Payable at the Treasury, n 85, the sum of 7,357, OJP THE DEMANDS ON THE TREASURY FOR 85. The demands authorzed by acts of appropraton durng the year 85, (exclusvely of certan ndefnte appropratons, the amount of whch s not yet ascertaned,) were the followng: For cvl, dplomatc, and mscellaneous expenses, besdes the unascertaned product of fnes, penaltes, and forfetures, assgned to defray the charges of courts, the sum of $3,080, For mltary expenses, ncludng those of the Indan Department, and the permanent appropraton of $200,000 for armng and equppng the mta, the sum of 5,68,790 4 For naval expenses, ncludng the annual appropraton of $200,000 for the purchase of tmber, 5,233, $3,932, * See the 6th secton of the act of the 3d March, 7, 3 vol., 232.

13 85.] STATE OF THE FINANCES. 3 For the publc debt, to wt: The nterest on the debt contracted before the.war, $,900,000 The nterest on the debt contracted snce the "war, (ncludng the loan of 85, and excludng the nteest of Treasury notes,) - 3,560,000 The nterest of fve and two-ffths per cent, per annum upon Treasury notes, outstandng on the st of January, 85, ncludng notes due n 84, and not pad, (the prncpal beng then $0,646,480,) the sum of ,000 The annual rembursement of the prncpal of the old sx per cent, and deferred stocks, the sum of -,590,000 The prncpal of Treasury notes, payable n 84, and the st of January, 85, but not then pad, the sum of - 3,799,200 The prncpal ot Treasury notes, payable n 85, and the st of January, 86, the sum ot ,847,280 The prncpal of temporary loans, payable n 84, but not then pad, ,000 8,77, The amount of the appropratons and of demands for the publc debt for 85, beng the sum of $32,703, The total amount, therefore, demandable at the Treasury durng the year 85, was - - $50,06,87 Consstng of appopratons made pror to that year, and unsatsfed at ts commencement, amountng to $7,357, And of appropratons ana demands on account of the publc debt, made and arsng durng the year 85, amountng to 32,703, OF THE WATS AND ME\NS OF THE TREASURY FOR THE YEAR 85. $50,06,87 These ways and means may be consdered n a two-fold aspect:*!. As to the ways and means placed by the laws wthn the power of the Treasury; and, 2. The amount capable of beng realzed, or made actually avalable by the Treasury, durng the year. Under the frst vew the ways and means conssted,. Of the cash n the Treasury at the commencement of the year, whch amounted to - $,526, Of the outstandng revenue, whch accrued pror to the year 85, and lemaned unpad at ts commencement, estmated, exclusve of the sums due lor publc lands, at ajjout - - 4,600, Of the revenue accrung n the year 85, estmated at $38,850,000, vz: Customs, $,000 Drect tax, nett product, - 5,400,000 Internal dutes, nett product, - 7,000,000 Publc lands, ,000,000 Postage and other ncdental recepts, - 450, Of the unexecuted authorty to borrow money and ssue Treasury notes, conferred by acts of Congress, passed pror to the year 85, vz: The loan act of March 4,82, $765,300 The loan act of March 24,84, ,562,9 The loan act of November 5, 84, - 3,000,000 Treasury note act of March 4,84, - $2,772,720 Treasury note act of December 26, 84, - 8,600, Of the authorty to borrow^ money and ssue Treasury notes, conferred by acts of Congress, passed n the year 85, vz: The loan act of March 3,85, - $8,452,800 The loan act of February 3,85, (for publc buldngs n Washngton,) - 500,000 Treasury note act of February 24,85, (exclusve of the re-ssues authorzed by ths act, -,000 38,850, ,327,49 00,372, ,2, $2,629, Ths great apparent surplus of ways and means wthn the power of the Treasury arose, n part, from the great ncrease n the amount of the customs accrung n the year 85, whch, nstead of $4,000,000, the amount estmated pror to the peace, wll, probably, n consequence of that event, amount to the sum of $,000, as here stated. A great porton also of the sums authorzed to be borrowed, or rased upon Teasury notes, t was evdent could not be obtaned or rased wthn the year; and the several successve acts by whch the authorty was gven, although they were nomnally accumulatve, were, actually, the result of attempts to vary or modfy ths authorty n such way as to render t more easy or more effectual n ts executon. The second vew of the ways and means for the year 85 exhbts the amount actually realzed and receved nto the Treasury durng the year. As the year s not yet termnated ths can only be gven by way of estmate. The result wll, probably, not dffer materally from the followng:, Cash n the Treasury at the commencement of the year, - 2. Recepts from revenue, ncludng that whch was outstandng at the commencement of the year, vz: ' Customs, - $8,000,000 Drect tax, - 2,200,000 Internal dutes, 4,700,000 Publc lands,,000,000 Postage and other ncdental recepts, - 450,(too 3. Recepts fom loans and Treasury notes. LOANS Under the act of March 4, 82,... $50, Under the act of November 5, 84, - - 0, Under the act of March 3,85, - $9,284, Under the act of March 3,85, temporary, - 650,000 00,,, Under the act of Feb- 3,85, temporary, - - 9,934, , $,526, ,350,000 00

14 4 FINANCE. [No Amount actually borrowed to the 30th of September 85, per statements annexed, marked G and K, - $,034, Amount estmated to be borrowed from the st October, to December 3, 85, 3,000, TREASURY NOTES. Amount ssued pror to the st of October, 85.. Treasury notes bearng nterest: Under the act of March 4, 84, - Under the act of December 26,84, Under the act of February 24,85, $2,772,720 8,38, ,600 $4,034, Per statement annexed, marked L, - $,785, Small Treasury notes not bearng Interest, under the act of February 24, 85. Amount ssued and re-ssued, per statement annexed, marked E> 4,52,850 Amount estmated to be ssued and re-ssued from October, to December 3, 85, ~ $5,938,570,000,000 6,938, ,972,64 38 Makng the total amount estmated to be actually receved nto the Treasury durng the year 85, $48,849,63 0 The applcaton of the moneys actually receved nto the Treasury, durng the year 85, wll be as follows: To the 30th of September the payments have amounted to the followng sums nearly, the accounts not beng yet made up, the precse amount cannot be gven. For cvl, dplomatc, and mscellaneous expenses, - For mltary servce, For naval servce, For publc debt, (exclusve of the sum of $300,000, repad by the Commssoner of Loans for Georga,) $2,537, ,90,44 7 7,050, ,909,78 22 Durng the fourth quarter of the year the payments are estmated to amount to the followng sums, vz: For cvl, dplomatc, and mscellaneous expenses, - $500,000 For naval servce, ,500,000 For publc debt to the st of January, 86, nclusve, - 3,000,000 As the recepts nto the Treasury durng the year have been estmated at - The sum left n the Treasury, at the end of the year, wll be ,686, ,000, $38,686, ,849,63 0-0,63, And wll consst prncpally of Treasury notes, pad on account of the revenue and of loans. OF THE ESTIMATES OF THE PUBLIC REVENUE AND EXPENDITURES FOR 86. In the consderaton of ths subject t s proper to premse, that the revenue of 86 must be charged wth the payment of a consderable amount of the unlqudated debts ncurred durng the war; and, consequently, that the proportons of revenue and expendture for that year cannot be reduced by the scale of a peace establshment. The arrearages n the War and Navy Departments are generally the outstandng balance of the floatng publc debt, ncludng Treasury notes and temporary loans, must be satsfed, before a permanent and unform arrangement of the fnances can be effected; but t s beleved that the perod of a sngle year wll be suffcent for that purpose. It s also proper to premse that, although the estmates of the demands on the^ Treasury for 86 may be satsfactorly made, there s no settled ground upon whch estmates of the ways and means can be confdently formed. The entre system of external and nternal taxaton must necessarly be revsed durng the present sesson of Congress; and the sources as well as the product of the publc revenue can only be ascertaned from the result of the legslatve delberatons. In order, however, to obvate ths dffculty as far as t s practcable, dstnct statements wll be presented for 86: IsU Of the probable demands of the Treasury; 2dly. Of the revenue, estmated accordng to the laws now n force; and, 3dly. Of the revenue, estmated accordng to the modfcatons, whch wll be respectfully submtted. I, Of the probable demands on the Treasury. The amount of the cvl, dplomatc, and mscellaneous expenses, s estmated at the sum of The amount of the mltary expenses s estmated at the sum of ^. t.. B f l. A.. For the mltary establshment of 86, - 5,2,59 For the arrearages of 85, beyond the amount of the appropratons, - 9,437,087 $,800,000 4,549,246 $4,549,246 The amount of the naval expenses (supposng them to be reduced on the geace establshment to one half of the amount approprated for 85, and addng the annual appropraton of 200,000 dollars for the purchase of tmber) s estmated'at the sum of - The amount of the payments requred on account of the publc debt, s estmated at the sum of For the nteest and annual rembursement of the prncpal of the funded debt pror to the war, - $3,460,000 For the nterest on the funded debt created snce the war, estmated on a captal of $70,000,000, ^ - 4,200,000 For the balance of prncpal and nterest on Treasury notes of evey denomnaton now due or payable n 85 and 86, or estmated to be pad n those years, by beng receved for dutes and taxes, asset forth n the annexed table, marked L,- 5,458,53 For the amount of temporary loans, due to the State bank of Boston, (500,000 dollars,) and the Mechanc's bank of New York, (200,000 dollars,) ,000 2,76,50 23,88,53 $42,884,269 $23,88,53

15 85.] STATE OF THE FINANCES. 5 From ths aggregate of the demands for 86, the charges of a teraporay nature beng deducted, to wt: deduct the amount of the arrearages for the mltary servces of 85, - - $9,437,087 And the amount of the floatng debt to be lqudated n 86, - 6,58,53 $25,5,600 There wll reman as the probable annual expendture of the peace establshment, ndependent of any addton to the snkng fund, the sum of $7,288,669 2d. Of the revenue for 86, estmated accordng to the laws now n force. By the laws now n force the revenue arsng from customs, durng the year 86, wll be affected n the followng manner: The present rates of dutes contnue untl the 8th of February, 86, when the duty on salt mported wll cease, and the rates of dutes on merchandse of every descrpton, mported n Amercan vessels, wll fall to one-half of the exstng amount, wth the excepton of certan manufactured artcles, bengsof the same knds as the manufactured artcles on whch nternal dutes have been mposed; the dutes on the mported artcles contnung at the exstng rates, so long as the exstng nternal dutes shall be contnued upon the correspondng artcles of domestc manufacture. On the 8th of February the extra dutes on merchandse mported n foregn vessels, whch s now 5J per cent, on the amount of the duty n Amercan vessels, wll fall to 0 per cent, on that amount, and the tonnage duty on foregn vessels, whch s now $2 per ton, wll fall to ffty cents per ton. The extra duty s, also, lable to be affected by the operaton of the act for abolshng all dscrmnatng dutes upon a bass of natural recprocty. By the laws now n force the revenue arsng from nternal dutes wll be effected n the followng manner: The dutes on bank notes, on notes dscounted by banks, and blls of exchange, (commonly called the stamp dutes,) and tbe duty on refned sugar, wll cease on the 8th of February, 86. All the other nternal dutes, together wth the drect tax, and the ncreased rates of postage, wll contnue. Under these crcumstances the revenue whch wll accrue to the Unted States, durng the year 86, s estmated as follows: From customs, - nternal dutes, drect tax, (nett produce to the Treasury,) sales of publc lands, postage and ncdental recepts, - $3,000,000 7,000,000 5,600,000,000, ,000 $27,000,000 The sums actually recevable nto the Treasury, durng the year, are estmated as follows: From cus.toms, nternal dutes, drect tax, ncludng arrears of 85, the sales of publc lands, - postage and ncdental recepts, If to ths be added the probable amount of money n the Treasury, at the commencement of the year 86, whch may be estmated, exclusve of Treasury notes pad n, prevously to that tme, on account of revenue and of loanfe, at the sum of - The effectve ways and means of 86 wll produce, n the whole, the sum of But as the demands upon the Treasury^ for the same year, wll amount, as above stated, to There wll be left a defct, to be suppled by means other than the revenue, of the sum of $20,000,000 6,500,000 8,500,000,000, ,000 $36,400,000 $3,000,000 $39,400,000 42,884,269 $3,484, Of the revenue for 86, estmated accordng to the modfcatons whch wll he respectfully submtted. From the revew of the fnancal measures of the Government, n reference to the recent state of war, whch consttutes the frst part of the present report, t appears that the almost entre falure of the customs, or dutes on mportatons, and the ncreasng necesstes of the Treasury, rendered t necessary to seek for pecunary supples n a system of nternal dutes; but both n respect to the subjects of taxaton, and to the amount of the several taxes, the return of peace has always been contemplated as n perod for revson and relef In the fulflment of that polcy, a reducton of the drect tax; a dscontnuance of taxes whch, upon tral, have proved unproductve as well as nconvenent; and, above all^the exoneraton of domestc manufactures from every charge that can obstruct or retard ther progress, seem to be the objects that partcularly nvte the legslatve attenton. There wll stll reman, however, a suffcent scope for the operaton of a permanent system of nternal dutes upon those prncples of natonal polcy whch have already been respectfully suggested. As an equvalent for the dmnuton of the revenue, by the contemplated abolton or reducton of some of the dutes and taxes, and n observance of the publc fath whch s pledged, n the case of such abolton or reducton, to provde and substtute other dutes and taxes equally productve, t s ntended respectfully to recommend a contnuance of the duty on mported salt, and a competent addton to the permanent rates of the dutes on merchandse mported. In the general tarff whch has been drected by a resoluton of the House of Representatves to be prepared, and whch wll be submtted to Congress as soon as the materals for formng t can be dgested and arranged, the subject wll be more dstnctly, as well as more satsfactorly, presented; but, as t s not probable that ths measure can be so matured as to go nto operaton on the 8th of February next, t becomes necessary to suggest the expedency of contnung the present rates of dutes untl the 30th of, when the new rates, wth all the necessary detals to gve effect to the system, may be ntroduced, and suffcent notce be gven to the merchants, to regulate ther commercal operatons accordngly. In relaton, then, to the nternal dutes, t s ntended respectfully to recommend that the dutes mposed at the last sesson of Congress, on varous artcles manufactured wthn the Unted States, shall be abolshed on the 8th day of Aprl next, whch wll complete the year, commencng from the tme the dutes went nto operaton; that the duty mposed durng the last sesson of Congress, on sprts dstlled wthn the Unted States, shall be abolshed on the 30th day of next, but that, at the same tme, there be added 00 per cent, on the rate of the duty whch had been charged on lcenses to dstllers of sprtuous lquors n the year 83; that the duty on household furnture, and on gold and slver watches, be abolshed on the 3st day of March next; that the addtonal duty mposed durng the last sesson of Congress, on lcenses to retal wnes, sprtuous lquors, and foregn merchan- *

16 3 3 FINANCE. * [No. 454 dse, be abolshed on the 3st day of December, 86; and that the dutes on refned sugar, and the stamp dutes be contnued; and, fnally, n relaton to the drect tax t s ntended respectfully to recommend that, on the 3st day of March next, t be reduced to one-half of ts present amount; that s, to the annual amount of $3,000,000. The subtracton from the revenue by these changes and reductons n the drect tax, and the nternal dutes, s estmated at the annual sum of $7,000,000. But the substtutes for supplyng the 'equvalent amount are estmated to produce, st, from the ncrease of the duty on lcenses to dstllers, and the contnuance of the stamp dutes, and dutes on refned sugar, the annual sum of $,500,000; 2nd, from the contnuance of the duty on mported salt, the annual sum of $500,000; and, 3d, from an ncrease upon the permanent rates of dutes on the mportaton of foregn merchandse, the annual sum of $5,000,000. The full effect of the alteratons whch have been stated wll not be developed untl some tme after the year 86; but f they be adopted the state of the revenue, for that year, n the two vews of whch t s susceptble, st, of revenue accrung durng the year, and, 2ndly, of money recevable nto the Treasury durng the year, may be estmated as follows:. The revenue whch wll accrue n 86 may be estmated From customs, From nternal dutes, From drect tax, (nett product to the Treasury,) From sales of publc lands, From postage and ncdental recepts, $7,000,000 4,500,000 2,700,000, ,000 $25,600, The moneys whch wll be actually recevable nto the Treasury, from revenue, n 85, may be estmated From the customs, $2,000,000 From nternal dutes, ,000,000 From drect tax, ncludng arrears of 85, 6,000,000 From sales of publc lands, ,000,000 From postage and ncdental recepts, ,000 $33,400,000 If to the sum thus estmated to be recevable nto the Treasury, frojn the revenue, durng the year year 86, $33,400,000 There be added the money whch wll probably be n the Treasury at the begnnng of the year, - 3,000,000 The aggregate wll be the sum of And the demands beng estmated, as above, at There wll be left a defct of 36,400,000 42,884,269 6,484,269 It s here, however, to be recollected, that the estmate of the demands on the Treasury comprehends the gross amount of the arrearages of the War Department, and a provson for the whole of the floatng publc debt; and although, for the purposes of a legslatve appropraton, the aggregate of the expendtures to be authorzed for the year 86 s necessarly made the bass of the offcal estmates, yet the unform experence of the Treasury evnces that the demands for a consderable porton of the annual appropraton wll not be made durng the year. It may also be observed, that to rase a revenue by the mposton, Or even by the contnuance, of taxes, adequate to the mmedate dscharge of every unlqudated demand upon the Treasury, at the close of an expensve war, seems hardly to be necessary under the present crcumstances of the country. The product of the revenue arranged n the manner whch has been stated, may be estmated, after the year 86, at an annual amount, nearly four mllons greater than the sum requred for the nterest on the publc debt, and for the probable expenses of the peace establshment. If the publc debt, therefore, were ncreased n the year 86, by a sum equal to the whole amount of the defct as above stated, an equvalent reducton would be effected n less than two years. The unexecuted authorty to borrow money, and to ssue Treasury notes, already provded by the acts of Congress, s suffcent to enable the Treasury to jneet the defct n ether of these modes, and consequently no further legslatve ad (except, perhaps, n the modfcaton of the ssues of Treasury notes) appears at ths tme to be requred. IIL PROPOSITIONS FOR THE IMPROVEMENT AND MANAGEMENT OF THE REVENUE, AND FOR THE SUPPORT OF PUBLIC CREDIT. The propostons whch are now to be respectfully submtted, relate:. To the revenue: 2. To the snkng fund: and 3. To the natonal crculatng medum.. Propostons relatng to the revenue. The changes contemplated n the revenue, on the estmates of a peace establshment, havng been already stated as the ntended objects of recommendaton, t s only now necessary to submt to the consderaton of Congress the measures requrng ther sancton for carryng the plan nto effect. Frst. It s respectfully proposed that the act of the st of July, 82, mposng an addtonal duty of 00 per cent, upon the permanent dutes on goods, wares, and merchandse mported nto the Unted States from any foregn port or place, and the act of the 29th of July, 83, mposng a duty upon mported salt, be contnued n force untl the 30th day of, 86. Second. It s respectfully proposed that the act of the 24th of July, 83, mposng a duty on sugar refned wthn the Unted States, and the act of the 2d of August, 83, mposng a duty on bank notes, notes dscounted, and blls of exchange, be contnued by law, n force, wthout lmtaton, but wth proper amendments to render the collecton of the dutes more equal, and more certan; and that the act of the 5th of December, 84, mposng dutes on carrages and the harness therefore; and that so much of the act of the 23d of December, 84, as relates to the dutes on sales at aucton, and to the ncreasng of the rates of postage, be allowed to reman n force. Thrd. It s respectfully proposed that there be a reducton or modfcaton n the followng taxes and dutes:. That the drect tax be reduced from sx mllons to three mllons of dollars, for the year 86, and for each succeedng year. 2. That the dutes on dstlled sprts be dscontnued after the 30th day of, 86; and that the duty on lcenses to dstllers be rased on that day to double the amount fxed by the act of the 24th of July, 83. \

17 / 85.] STATE OF THE FINANCES That the dutes on lcenses to retalers of wnes, sprtuous lquors, and foregn merchandse, be reduced to the rates of the year 83, wth proper regard to the perods when lcences commence and expre. Fourth. It s respectfully proposed that the act of the 8th of January, 85, and the act of the 27th of February, S5, mposng dutes on varous artcles manufactured, or made for sale wthn the Unted States, and the act of the 8th of January, 85, mposng dutes on household furnture, and watches, be absolutely and entrely repealed. Ffth. It s respectfully proposed that the act of the 3d of March, 85, further to provde for the collecton of the dutes on mports and tonnage, and the act of the 3d of March, 85, to fx the compensatons, and ncrease the responsblty of the collectors of the drect tax, and nternal dutes, and for other purposes connected wth the collecton thereof, so far as t relates to the compensaton of the collectors of the drect tax and nternal dutes, be contnued n force wthout lmtaton. 2. Proposton relatng to the snkng fund. The snkng fund, as t s at present consttuted, amounts to the annual sum of - - $8,000,000 It s charged, n the frst nstance, wth the payment of the nterest, and the annual rembursement of the prncpal of the old funded debt, whch wll requre for 86, and each of the two ensung years, the sum of $3,460,000 And t s charged wth the payment of the nterest, and the eventual rembursement of the prncpal of the new funded debt., The nterest computed on a captal of $70,000,000, wll requre for the year 86, and each subsequent year, the sum of ,200,000 The total present charge on the snkng fund, on account of the funded debt, beng the annual sum of $7,660,000 In 88 the fund wll be released from the annual charge of $,380,000, accrung upon the old sx per cent, stock, as the stock wll be then pad and extngushed; but n the same year t wll be subjected to a charge of $3,000,000, for the frst nstalment of the prncpal of the Lousana stock, whch wll then become payable. In each of the two succeedng years a smlar sum wll be payable; and, n the year 82, such sum wll be payable as may be necessary to complete the rembursement of that stock, and whch s estmated at $,923,500. The snkng fund s, also, at present charged wth the payment of the prncpal and nterest of the Treasury notes ssued under the act of the 4th of March, 84, and pror acts, and of certan temporary loans obtaned under the loan acts of 82, and of subsequent years. The several acts chargng these payments on the snkng fund have drected that such sums, n addton to the annual appropraton of $8,000,000, should be taken from any moneys n the Treasury not otherwse approprated, as should be necessary to meet and satsfy the demand. The temporary loans and Treasury notes wll, therefore, be probably pad or absorbed n 87; and t s deemed unnecessary, for the present purpose, to nclude them n the consderaton of the form and extent, whch t s proposed to gve to the snkng fund n that year. In 803, when the snkng fund was establshed on ts present footng, the prncpal of the publc debt was about $86,000,000, and the nterest annually payable upon t about $4,500,000. At that tme there was assgned to the snkng fund, out of the publc revenue, $8,000,000, of whch about $3,500,000 were annually applcable to the reducton of the prncpal of $86,000,000. At the commencement of the year 87 t s estmated that the prncpal of the funded debt wll amount to $0,000,000, requrng the sum of $6,50,000 for the payment of ts annual nterest. If a sum, applcable to the reducton of the prncpal of the debt were now to be assgned, bearng the same proporton to that prncpal whch the sum assgned n 804 then bore to the prncpal, t would amount to about $4,350,000. When t s added, therefore, to the sum of $6,50,000, whch s necessary for the payment of the nterest, there would be requred for the amount now to be set apart, to consttute the snkng fund, the sum of $0,500,000 per annum. It s proposed, however, to carry the amount only to the sum of $0,000,000, whch wll allow about $3,850,000 as applcable to the reducton of the prncpal of the debt; a sum suffcent, f strctly and regularly appled wthout nterrupton, upon a compound prncple, to pay off the whole of the funded debt n a perod less than eghteen years. Upon these grounds, then, the Secretary of the Treasury respectfully submts the followng proposton: That, n the year 87, and annually n every subsequent year, there be approprated the sum of $2,000,000, n addton to the sum of $8,000,000 now annually approprated for the payment of the nterest "and prncpal of the publc debt: that the payment of ths addtonal sum be made out of the proceeds of the revenue derved from the customs, the sales of publc lands, and the nternal dutes, or from ether of them, avalable after the payment of the sums, for whch they are now respectvely pledged or approprated; and that the sad addtonal sum of $2,000,000 annually be payable to the commssoners of the snkng fund, to be appled by them n the same manner as the moneys whch they are now enttled by law to receve; that s to say, st, to the payment of the nterest on the publc funded debt; 2ndly, to the rembursement of the prncpal, from tme to tme, as the same, or any porton of t, shall become rembursable, accordng to the terras of the contracts by whch t has been created; and, 3dly, after havng answered these purposes, f there shall reman a surplus at ther dsposal, to the purchase of such parts of the publc funded debt, as shall appear to them to be most for the advantage of the Unted States, n the manner prescrbed by law, and at a rate not exceedng the par value. 3. Proposton relatng to the natonal crculatng medum. The delcacy of ths subject s only equalled by ts mportance. In presentng t, therefore, to the consderaton of Congress, there s occason for an mplct relance upon the legslatve ndulgence. By the consttuton of the Unted States Congress s expressly vested wth the power to con money, to regulate the value of the domestc and foregn cons n crculaton, and, as a necessary mplcaton from postve provsons, to emt blls of credt, whle t s declared by the same nstrument that "no State shall con money, or emt blls of credt." () Under ths consttutonal authorty the money of the Unted States has been establshed, by law, consstng of cons made wth gold, slver, or copper. (2) All foregn gold and slver cons, at specfed rates, were placed, n the frst nstance,upon the same footng wth the cons of the Unted States, but they ceased (wth the excepton of Spansh mlled dollars, and parts of such dollars) to be a legal tender for the payment of debts and demands, n the year 809. (3) () Consttuton, Art.. Sec (2) See 2 vol. 37, 20, 58, 6 3 vol. 7, 22, vol. 62, 375, 3. (3) See 2 vol vol vol C

18 3 FINANCE. * [No. 454 The consttutonal authorty to emt blls of credt las also been exercsed n a qualfed and lmted manner. Durng the exstence of the Bank of the Unted States the blls or notes of the corporaton were declared, by law, to be recevable n all payments to the Unted States; and the Treasury notes, whch have been snce ssued for the servces of the late war, have been endowed wth the same qualty. But Congress has never recognsed, by law, the notes of any other corporaton; nor has t ever authorzed an ssue of blls of credt to serve as a legal currency. The acceptance of the notes of banks, whch are not establshed by the federal authorty, n payments to the Unted States, has been properly left to the vglance and dscreton of the Executve department; whle the crculaton of the Treasury notes, employed ether to borrow money, or to dscharge debts, depends entrely (as t ought to depend) upon the opton of the lenders and credtors to receve them. The consttutonal and legal foundaton of the monetary system of the Unted States s thus dstnctly seen, and the power of the federal Government to nsttute and regulate t, whether the crculatng medum consst of con or of blls of credt, must, n ts general polcy, as well as n the terms of ts nvestment, be deemed an exclusve power. It s true that a system dependng upon the agency of the precous metals wll be affected by the varous ccumstances whch dmnsh ther quantty, or deterorate ther qualty. The con of a State sometmes vanshes under the nfluence of poltcal alarms; sometmes n consequence of the exploson of mercantle speculatons, and sometmes by the dran of an unfavorable course of trade. But whenever the emergency occurs that demands a change of system t seems necessarly to follow that the authorty, whch was alone competentto establsh the natonal con, j s alone competent to create a natonal substtute. It has happened, however, that the con of the Unted States has ceased to be the crculatng medum of exchange, and that no substtute has htherto been provded by the! natonal authorty. Durng the last year the prncpal banks, establshed south and west of New England, resolved that they would no longer ssue con m payment of ther notes, or of the drafts of ther customers, for money receved upon deposte. In ths act the Government of the Unted States had no partcpaton, and yet the mmedate effect of the act was to supersede the only legal currency of the naton. By ths act, although no State can consttutonally emt blls of credt, corporatons, erected by the several States, have been enabled to crculate a paper medum, subject to many of the practcal nconvenences of the prohbted blls of credt. It s not ntended, upon ths occason, to condemn, generally, the suspenson of spece payments; for appearances ndcated an approachng crss, whch would probably have mposed t as a measure of necessty, f t had not been adopted as a measure of precauton. Bnt the danger whch orgnally nduced, and perhaps justfed, the conduct of the banks, has passed away, and the contnuance of the suspenson of spece payments must be ascrbed to a new seres of causes. The publc credt and resources are no longer mpared by the doubts and agtatons excted durng the war by the practses of an enemy, or by the nroads of an llct commerce: yet the resumpton of spece payments s stll prevented, ether by the reduced state of the natonal stock of the precous metals, or by the apprehenson of a further reducton to meet the balances of foregn trade, or by the redundant ssues of bank paper. The probable drecton and duraton of these latter causes consttute, therefore, the exstng subject for delberaton. Whle they contnue to operate, sngly or combned, the authorty of the States ndvdually, or the agency of the State nsttutons, cannot afford a remedy commensurate wth the evl; and a recurrence to the natonal T authorty s ndspensable for the restoraton of a natonal currency. In the selecton of the means for the accomplshment of ths mportant object, t may be asked, st. Whether t be practcable to renew the crculaton of the gold and slver cons? 2d. Whether the State banks can be successfully employed to furnsh a unform currency? 3dly. Whether a natonal bank can be employed more advantageously than the State banks for the same pupose? and, 4thly. Whether the Government can tself supply, and mantan a paper medum of exchange, of permanent and unform value, throughout the Unted States?. As the Unted States do not possess mnes of gold or slver the supply of those metals must, n a tme of scarcty, be derved from foregn commerce. If the balance of foregn commerce be unfavorable the supply wll not be obtaned ncdentally, as n the cast? of the returns for a surplus of Amercan exports, but must be the subject of a drect purchase. The purchase of bullon s, however, a common operaton of commerce, and depends, lke other operatons, upon the nducements to mport the artcle. The nducements to mport bullon arse, as n other cases, from ts beng cheap abroad, or from ts beng dear at home. Notwthstandng the commotons n South Amerca, as well as n Europe, thee s no leason to beleve that the quantty of the precous metals s now (more than at any former perod) nsuffcent for the demand throughout the commercal and cvlzed world. The prce may be hgher n some countres than n others; and t may be dfferent n the same country, at dfferent tmes; but, generally, the European stock of gold and slver has been abundant, even durng the protracted war, whch has afflcted the natons of Europe. The purchase of bullon n foregn markets, upon reasonable terms, s. then, deemed practcable; nor can ts mportaton nto the Unted States fal eventually to be proftable. The actual prce of gold and slver n the Amercan market would n tself afford, for some tme, an ample premum, although the fall n the prce must, of course, be proportonate to the ncrease of the quantty. But t s wthn the scope of a wse polcy to create addtonal demands for con, and, n that way, to multply the nducements to mport and retan the metals of whch t s composed. For nstance, the excessve ssue of bank paper has usurped the place of the natonal money; and, under such crcumstances, gold and slver wll always contnue to be treated as an artcle of merchandse: but t s hoped that the ssue of bank paper wll be soon reduced to ts just share n the crculatng medum of the country; and, consequently, that the con of the Unted States wll resume ts legtmate capacty and character. Agan, the Treasury,yeldng, from necessty, to the general mpulse, has htherto consented to receve bank paper n the payment of dutes and taxes; but the perod approaches when ft wll probably become a duty to exact the payment ether n Treasury notes, or n gold or slver con, the lawful money of the Unted States. Agan, the nsttutons whch shall be deemed proper, n order to remove exstng nconvenences, and to restore the natonal currency, maybe so organzed, as to engage the nterest and enterprse of ndvduals n provdng the means to establsh them. And, fnally, such regulatons may be mposed upon the exportaton of gold and slver, as wll serve n future to fx and retan the quantty requred for domestc uses. But t s further beleved that the natonal stock of the precous metals s not so reduced, as to render the operaton of renstatng ther agency n the natonal currency ether dffcult or protracted. The quantty actually possessed by the country s consderable; and the resusctaton of the publc confdence n bank paper, or n other substtutes for con, seems alone to be wantng to render t equal to the accustomed contrbuton for a crculatng medum. In other countres, as well as n the Unted States, the effect of an excessve ssue of paper money, to bansh the precous metals, has been seen; and, under crcumstances much more dsadvantageous than the present, the effect of publc confdence n natonal nsttutons, to recall the precous metals to ther uses n exchange, has also been experenced. Even, however, f t were practcable, t has sometmes been questoned whether t would be poltc agan to employ gold and slver for the purposes of a natonal curency. It was long and unversally supposed that, to mantan a paper medum wthout deprecaton, the certanty of beng able to convert t nto con was ndspensable;

19 85.] STATE OF THE FINANCES. 9 nor can the experment whch has gven rse to a contrary doctrne be deemed complete or conclusve. But whatever may be the ssue of that experment elsewhere, a dfference n the structure of the Government, n the physcal, as well as the poltcal, stuaton of the country, and n the varous departments of ndustry, seem to deprve t of any mportant nfluence, as a precedent for the mtaton of the Unted States. In offerng these general remarks to the consderaton of Congress t s not ntended to convey an opnon that the crculaton of the gold and slver cons can at once be renewed. Upon motves of publc convenence the gradual attanment of that object s alone contemplated;, but a strong, though respectful, solctude s felt that the measures adopted by the Legslature should nvarably tend to ts attanment. 2d. Of the servces rendered to the Government by some of the State banks durng the late war, and of the lberalty by whch some of them are actuated n ther ntercourse wth the Treasury, justce requres an explct acknowledgment. It s a fact, however, ncontestably proved, that those nsttutons cannot, at ths tme, be successfully employed to furnsh a unform natonal currency. The falure of one attempt to assocate them wth that vew has already been stated. Another attempt, by ther agency n crculatng Treasury notes, to overcome the nequaltes of the exchange, has only been partally successful. And a plan recently proposed, wth the desgn to curtal the ssues of bank notes, to fx the publc confdence n the admnstraton of the affars pf the banks, and to gve to each bank a legtmate share n the crculaton, s not lkely to receve the general sancton of the banks. The truth s, that the charter restrctons of some of the banks, the mutual relaton and dependence of the banks of the same State, and even of the banks of dfferent States, and the duty whch the drectors of each bank conceve they owe to ther mmedate consttuents^ upon ponts of securty or emolument, nterpose an nsuperable obstacle to any voluntary arrangement, upon natonal consderatons alone, for the establshment of a natonal medum through the agency of the State banks. It s, nevertheless, wth the State banks that the measures for restorng the natonal currency of gold and slver must orgnate; for, untl ther ssues of paper be reduced, ther spece captals be renstated, and ther spece operatons be commenced, there wll be nether room, nor employment, nor safety, for the ntroducton of the precous metals. The polcy and the nterest of the State banks must, therefore, be engaged n the great fscal work, by all the means whch the Treasury can employ, or the legslatve wsdom shall provde. 3d. The establshment of a natonal bank s regarded as the best, and, perhaps, the only adequate resource to releve the country and the Government from the present embarrassments. Authorzed to ssue notes, whch wll be receved n all payments to the Unted States, the crculaton of ts ssues wll be co-extensve wth the Unon, and there wll exst a constant demand, bearng a just proporton to the annual amount of the dutes and taxes to he collected, ndependent of the general crculaton for commercal and socal purposes. A natonal bank wll, therefore, possess the means and the opportunty of supplyng a crculatng medum of equal use and value n every State, and n every dstrct of every State. Establshed by the authorty of the Government of the Unted States, accredted by the Government to the whole amount of ts notes n crculaton, and entrusted as the depostory of the Government wth^ll the accumulatons of the publc treasure, the natonal bank, ndependent of ts mmedate captal, wll enjoy every recommendaton whch can mert and secure the confdence of the publc. Organzed upon prncples of responsblty, but of ndependence, the natonal bank wll be retaned wthn ts legtmate sphere of acton, wthout just apprehenson from the msconduct of ts drectors, or from the encroachments of the Government. Emnent n ts resources, and n ts example, the natonal bank wll conclate, ad, and lead, the State banks n all that s necessary for the restoraton of credt, publc and prvate. And actng upon a compound captal, part}' of stock, and partly of gold and slver, the natonal bank wll be the ready nstrument to enhance the value of the publc securtes, and to restore the currency of the natonal con. 4th. The power of the Government to supply and mantan a paper medum of exchange wll not be questoned; but, for the ntroducton of that medum, there must be an adequate motve. The sole motve for ssung Treasury notes has, htherto, been to rase money n antcpaton of the revenue. The revenue, however, "wll probably become, n the course of the year 86, and contnue afterwards, suffcent to dscharge all the debts, and to defray all the expenses of the Government; and, consequently^there wll exst no motve to ssue the paper of the Government as an nstrument of credt. It wll not be deemed an adequate object for an ssue of the paper of the Government, merely that t may be exchanged for the paper of the banks, snce the Treasury wll be abundantly suppled wth bank paper by the collecton of the revenue; and the Government cannot be expected to render tself a general debtor, $L order to become the specal credtor of the State banks. The co-operaton of the Government wth the natonal bank, n the ntroducton of a natonal currency, may, however, be advantageously employed by ssues of Treasury notes, so long as they shall be requred for the publc' servce. Upon the whole, the state of the natonal currency, and other mportant consderatons connected wth the operatons of the Treasury, render t a duty respectfully to propose That a natonal bank be establshed at the cty of Phladelpha, havng power to erect branches elsewhere, and that the captal of the bank (beng of a competent amount) consst of three-fourths of the publc stock, and onefourth of gold and slver. All whch s respectfully submtted. A. J. DALLAS, Secretary of the Treasury. TREASURY DEPARTMENT, December 6,85,

20 3 3 FINANCE. * [No. 454 A. Statement of the aggregate amount of the recepts and expendtures at the Treasury of the Unted States for each year from the commencement of the present Government to the year 84. To end of year. Total amount receved. Total amount expended. To endofyear. Total amount receved. Total amount expended. I soa $4,77, ,772, ,450, 5 9,439, ,55, ,740, ,758, ,79, ,546,83 3 2,43, ,945,455 4,9,793 $3,797, ,962, ,479, ,04, ,5, ,367, ,625, ,583,68 4,002,396 97,2, ,273, ,270, $,064,097 63,826, ,560,693 20! 5,559, ,398, ,060, ,773, ,34, ,422, ,639, ,524,844 34,878, $,258, ,65,3 72 3,598, ,02,96 26,292, ,762, ,867, ,309, ,592, ,279,2 5 39,90, ,547,95 62 B. Table of dutes mposed on goods ^ wares, and merchandse manufactured wthn the Unted States or the Terrtores thereof by the acts of the 8th of January and 27t of February, 85. Artcles. Kates of duty. Pg ron, bar ron, rolled or slt ron, per ton, - Castngs of ron per t9n, - - Nals, Drads, and sprgs, other than those usually denomnated wrought, per pound, Candles of whte wax, or n part of whte and other wax, per pound, - Mould candles of tallow, or of wax other than whte, or n part of each per pound, Hats and caps, n whole or n part of leather, wool, or furs; bonnets n whole or n part of wool or fur, f above,two dollars n value; hats of chp or wood covered wth slk or other materals, or not covered, f above two dollars n value, - Unbrellas and parasols, f above the value of two dollars, - Paper, Playng and vstng cards, Saddles and brdles, Boots and bootees, exceedng fve dollars per par n value, - Beer, ale, and porter, Tobacco manufactured, segars and snuff, Leather, ncludng theren all knds of skns whether tanned, tawed, dressed, or otherwse made, Gold, slver and plated ware, and jewellery and paste work, except tmepeces, - dollar. dollar 50 cents. cent 5 cents. 3 cents. 8 per cent, ad val. 8 per cent, ad val. 3 per cent, ad val. 50 per cent, ad val. 6 per cent, ad val. 5 per cent, ad val. 6 per cent, ad val. 20 per cent, ad val. 5 per cent, ad val. 6 per cent, ad val.

21 front 79 to 85, nclusve Foregn debt, - Domestc debt, vz: Sx per cent, and deferred stocks, Three per cent, stock, Fve and a half per cent, stock, Four and a half per cent, stock, Sx per cent, (ot 796) stock, - Navy sx per cent, stock. Eght per cent, stock. Lousana sx per cent, stock. Exchange sx per cent, stock. Converted sx per cent, stock. Sx per cent, stock of 82. Sx per cent stock of 83. Sx per cent, stock of 84. Temporary loans, - Treasury notes. Old unfunded debt, - Amercan clams assumed by the Lousana conventon. / > Total amount due to ndvduals, Deduct payment made by the Treasury on account of subsequent years, «Total amount unprovded for, - $2,82,83 92,43, ,9 33 6,08, ,463, ,502 3 $75,69,974 2 s $4,56,87 4 6,359, ,346, ,9, ,227, ,57 50 $76,373,767 6 $5,494, ,722, ,756, ,556,5 56 6,822, ,352, ,764,636 $77,587, $4,308,4 6 37,790, ,98, ,400, ,947, ,427, ,43,234 2 $75,996,70 56 $4,727, ,705, ,90, ,500, , ,747, ,597, $78,49, $,939, ,273, ,974,390 56,848, , ,200, ,350,456 24, 83,762, ,9,899 $8,642, $,939, ,769, ,09,87 28,848, , ,20, ,0, ,064,479 33,30, $80,934, $,059, ,43, ,024,20 84,847, , ,840, ,058, ,228, , $78,4.94,65 75 $0,979, ,460, ,036,945 3,847, , ,840, ,989, ,408,669 79,008, ,399, * H

22 STATEMENT Contnued. \.. : ', " " m 8Q , Foeg debt, - - -, Domestc debt, vz: Sx per cent, and deered stocks, Three per cent, stock, Fve and a luff per cent, stock, Four and a hall per cent, stock, Sx pe cent, (of 796) stock, - Navy b\ per cent, stock, Eght per cent, stoclc, Lousana sx per cent, stock, Exchanged sx per cent, stock. Conveted sx per cent, stock. Sx per cent, stock of 82. Sjx per cent, stoclc of 83. Sx per cent, stock of 84. Tempot.uy loans, Treasury notes. Old unfunded debt, - Amecan clams assumed by the Lousana conventon, * $0,89,000 00, 38,738, ,086,725 72,847, , , ,000, ,640, ,876, $0,49,000 oa 37,947, ,093,902 2,847, ; 76, , ,48, ,40,000' 00,840, $9,95, ,853, ,09,08 0,847, , , ,480, v» 3,740, ,87,68 89 * * I $8,730, ,700, ,093,575 6,847, , , ,475, * m,450, ,789, $5,736, ,480, ,093,976 03,847, , , ,474,500 00,350, ,000 00,876, ,750, $4,065, ,87,55 6 9,094,23 62,847, , , ,462,300 00,250, , , ,750, $3,239, ,80,96 0 9,047,33 97,847, , , ,430,800 00,250, , ,057,43 38 $,420, ,320,64 3 9,09, , ,363,400 00,250, , , Total amount due to ndvduals, Deduct payment made by the Teasury on account af subsequent years, 83,976,294 35,342, ,038,050' 80 _,037, ,72,632 25,8, ,054, ,323, ,427,20 88,073, ,33,50 50,778, ,733,3^0 66,80, ,28,398 64,486, Total amount unprovded for, - $8,633, $82,000,67 36 $78,754, $74,73, $85,353, $80,534, $74,542,7 63 ' $67,73,645 62

23 STATEMENT Contnued. \ 00 h-* cn Foregn debt, - Domestc debt* vz: Sx per cent, and deferred stocks, Tn ce per cent, stock, - * Fve and a half per cent, stock. Four and a halt per cent, slock. Sx per cent, (ot 796) stock, - Navy sx percent, stock. Eght per cent, stock, Lousana sx percent, stock, - Exchanged sx per cent, stock, Converted sx per cent, stock, Sx per cent stock of 82, Sjx per cent, stock of 83, Sx per cent, stock of 84, Temporary loans* - Treasury notes* - Old unfunded debt, - Ameucan clams assumed by the Lousana conventon, Tfctal amount due to ndvduals, Deduct payment made by the Treasury on account of subsequent years, Total amount unprovded for, - $ 4 26,730, ,07, ,574,200 00,250, ,26, , , , ,96, ,99 7 $64,742, $ 240, ,308, ,57,793 59,250, ,993,343 50,859, , , ,023, ,82 28 $56,732,379 8 $9,977, ,57,890 04,250, ,75,25 26,859, , , ,72, ,36 73 $53,56, $8,566, ,57,890 04,250,000 00,859, , , ,005, ,57 20 $47,855,070/ 50 $7,066, ,57, r 80,000,00,250, , , , ,2, ,857 6 $45,035,23 70 $2,866, ,57,972 59,070, ,745, ,977, ,50, ,835, , , ,965, ,68 75 $55,907, $,236, ,58, ,923, ,984, ,70, ,607, , ,907, , , ,490, , $80,986,29 65 $9,760, ,58, ,923, ,984, ,760, ,607,9 38 4,234, , ,646, , , ,833,903 56,492 8G $99,824,40 70 CO H3 W o T-3 W w Hrj W & > a w 03

24 l 24 FINANCE. [No, 454. D. \ Statement exhbtng the quantty of publc lands sold pror to the establshment of the land offces, In Pennsylvana. Trangle on lake Ere, In Oho year 787. Sales at New York, year 796. Sales at Pttsburg, - year 796. Sales at Phladelpha, year 792. Sales to Oho Company, year 792. To John C. Symmes, 202,87 acres, 72,974 43,446 5,20 964, ,540,536,552 acres Statement exhbtng the amount of the annual sales of publc lands, from the openng of the land offces to the 30th of September, 84. Northwest of the rver Oho. In Msssspp Terrtory. Years n whch the sales were made Acres. Dolls, cts. Acres Dolls. Cts. m 800 and 80, - 802, , , Deduct ncluded last year, - 8, , - 805, - 806, , - 808, - 398, , , , ,266.3^, 473,2.63j 284,80.29* ;,579.2 V The purchase money was not exhbted n the annual statem's of those years. 74,83.50^ 7, , , , 80t... 8, - 82,... 83,, - 84, 2,865, ,409.24^ : 58,843.57* j 207,07.4^ 39, , j 823, ,98, , , , , ,80 52,702, , , , ,872.75* 30, , ; 94, , , ,904 36$ 60, , Sales endng Sept. 30,85, estmated at 4,829,753.0,000, j 0,20, ,00, , ,000.00,46, , ,829,753.0 $2,30,30 89f V 575,74.83 $,86,376 82} GENERAL LAND OFFICE, September 4,85. JOSIAH MEIGS, Commssoners E. SMALL TREASURY NOTES. Statement of small Treasury notes ssued, and estmate of those re-ssued pror to the ls of October, 85. For the payment of To whom ssued. t Dvdend on the Of the army, publc debt. Expenses of the navy, and mscellaneous exp enses. Sold for a premum. Wllam Gadner, - Benjamn Austn; - Chrstopher Ellery, - Robert Brent, Robert Brent, Robert Brent, T. Macdonnough, - B. Homans, Robe t Brent, Jonathan Smth, Wllam Mller, Wllam Gardne, - Chrstopher Ellery, - Benjamn Austn, - Wllam Few, James Marshall, $300,000 the Teasuy. not used, leturned to $,000 5,000 2,000 8,300 3,500 80,000 4 $300, , , ,000 $3, $300,000 35,000 Amount ssued, - Amountestmatedto have been le-ssued after havng been funded or pad n for dutes or taxes, $644, ,300 $,300,000 65,069 $3,050 06,63 $335,000,030,000 Total, $,203,00 $,465,069 $09,68 $,365,000

25 85.] STATE OF THE FINANCES. 25 E Contnued. The notes sold were sold at tlt followng rates: At 4 per cent, premum, 3* dtto, 3 dtto, 24 dtto, 3? dtto, H dtto, 2 dtto* dtto,! dtto, u dtto, wth month's nterest deducted, $300,000 9,600 89,400 55,000 28,000 5, ,000 0,000 9,000 74,000 00,000 Amount of the premum, dtto, dtto, dtto, dtto, dtto, dtto, dtto, dtto, - dtto, $2, ,682 00, , , , SI,365,000 Deduct sundry charges ncurred, $33,893 37, Nett amount of premum receved by the Unted States, - $32,07 64 F. NOTICE. TREASURE DEPARTMENT, March 0,85. In pursuance of powers, whch have been duly vested n the Secretary of the Treasury, under an act of the Congress of the Unted States, enttled " An act to authorze the loan for a sum not exceedng eghteen mllons four hundred and ffty-two thousand eght hundred dollars," approved by the Presdent of the Unted States on the 3d of March, current, proposals wll be receved by the Secretary of the Treasury from ths tme, untl the frst day of next, (unless the amount requred should be prevously subscrbed,) for a loan to the Unted States of the sum of twelve mllons of dollars, or any part thereof, on the followng terms, and n the followng manner:. The proposals must state the amount to be loaned; the rate at whch the stock wll be receved; the nstalments n whch the party wll make the payments, not exceedng, for the whole, nnety days from the date of the subscrpton, and the banks nto whch the payments wll be made. 2. The payments wll be receved ether n money, or n approved bank notes, or n Treasury notes actually ssued before the 3d of March current, under the acts of Congress, passed, respectvely, the 30th of, S2, the 25th of February, 83, and the 4th of March, 84, at ther par value, wth the nterest accrued thereon at the tme of payment. The knd of payment ntended to be made must be stated n the proposals; and where the terms of subscrpton are equal, a preference wll be gven to offers for payng n Treasury notes, whch have become due and reman unpad, wth an allowance of the nteest upon such notes, as well snce, as before they became due. 3. On falure to pay any nstalment at the tme stpulated, the next precedng nstalment shall be forfeted for the use of the Unted States. 4. Scrp certfcates wll be ssued by the cashers of the banks nto whch the payments shall be made, to the corporatons or persons makng the payments; the cashers wll also endorse the payment of the successve nstalments; the scrp certfcates wll be assgnable by endorsement and delvery, and wll be funded at the loan offce of the State n whch the bank s stuated where the payments have been made. 5. For the amount loaned stock wll be ssued when the nstalments are completed, bearng nterest at sx per cent, per annum, payable quarter yearly. The stock wll be rembursable at the pleasure of the Unted States at any tme after twelve years from the last of December next; and the snkng fund s charged wth the punctual payment of the nterest, and the rembursement of the prncpal accordng to contract. It s desrable, as far as the publc nterest wll permt, to reduce the amount of the Treasury note debt, and partcularly the porton of t whch s due and unpad; and, therefore, an early subscrpton s recommended to the holders of Treasury notes. But, n order to save tme and trouble, t may be proper to observe that the terms of the proposals should bear some relaton to the actual far prce of stock n the markets of Phladelpha and New York. A commsson of one-fourth per cent, wll be allowed to any person collectng subscrptons for the purpose of ncorporatng them n one proposal to the amount of twenty-fve thousand dollars or upwards, provded such proposals shall be accepted. A* J, DALLAS, Secretary of the Treasury. # 4 C

26 G. CD Statement of sums borrowed pror to the st day of October, 85, under the act of Congress of the 3d of March, 85, " to authorze a loan for a sum not exceedng 8,452,800 dollars PROPOSALS OR OFFERS TO THE LOAN ACCEPTANCE OF OFFERS SUMS ACTUALLY PAID INTO THE TREASURY. When made. By whom. Amount "When accepted. Rate. Am't n money or Treasury notes, for 00 dollars, 6 per cent, stock. When pad. Amount pad n Treasury notes. Payments n money Whete made. Amount. Total; 85. Apnl 5, Aprl 9, Aprl 2, Aprl 24, Aprl 29, Aprl 29, Aprl 29, 6, 6, 9, 9, 9, 20, 20, 22, 22, 22, 22, 23, 23, 23, 26, 37, 24, 24, 24, 24, 24, 24, 24, 24, 25, Jacob Cutter, Portsmouth, New Hampshe, James De Wolf, Brstol, Rhode Island, - James Cox, Baltmore, James L. McKenna, Alexandra, George T. Dunbar, Baltmore, Wllam Polk, Ralegh, Clement Smth, Georgetown, Dstrct of Columba, Jonathan Smth, Phladelpha, Wllam Whann, Washngton, John Donnell, Baltmore, Wllam Wlson & sons, Baltmoe, Rchard Smth, Washngton, Rchard Smth, Washngton, James L. Hawlcns, Baltmore, James L. Hawkns, Baltmore, Wllam Whann, Washngton, D. A. Smth, Baltmore, Rchad Smth, Washngton, Rchard Smth, Washngton, Wllam Whann, Washngton, Jonathan Smth, Phladelpha, Wllam Whann, Washngton, Rchard Smth, Washngton, Rchard Smth, Washngton, Rchad Smth, Washngton, James L. Hawkns, Baltmore, James Cox, Baltmore, James Schott, Phladelpha, - Thomas Macdonough, Mddletown, Rchard Smth, Washngton, / $50,000 50, ,000 63,000 65,000 00,000 45, ,000 50,000 52,625 79,000 69,500, 45,000 35,000,000,000 52,500 52, ,000 27, , , ,500 22, ,300 Aprl Apl Apnl Aprl Aprl 6, 24, 22, 26, 5, 29, 7, 7, 22, 22, 9, 20, 22, 25, 22, 22, 23, 23, 23, 29, 24, 24, 24, 25, 27, 24, 2, 24, 25, Aprl July 20, r 20, \ 5,.. August 5, I,,,, 25, 25, 25,,, 25, 25,,,,, 24, 25, 6, $52, , 5, w ) 308, , 63, , 64, w,000 t M M 23, 600, , - A j 83, M 52,700 42, , , , Washngton, Georgetown, D.C. Washngton, Baltmoe, Georgetown, C Baltmore, Washngton, Baltmore, Washngton, Baltmore, Georgetown, Georgetown, Washngton Washngton, Washngton, Washngton, Washngton, Baltmore, 5 Baltmore, t Washngton, Washngton, Washngton, $00, ,000 53, ,000 24,500 5,000 30,000 85,048 7,94 35,000,000,000 52,500 52,000 27, ,444 00,000 50, , ,300 $52, , , , ,000,000 45, , ,500 52,700 79,000 24,500 5,000 30,000 45,000 35,000,000,000 52,500 52, , , , ,000 9, , ,300 2 > O W!25 cn

27 jr Contnued. oo OR PROPOSALS OR OFFERS TO THE LOAN. ACCEPTANCE OR OFFERS. SUMS ACTUALLY PAID INTO THE TREASURY. When made. Amount, When accepted. Rate, Am't n money or Treasury notes, for 00 dollars, 6 per cent, stock. When pad. Amount pad n Treasury notes. Payments n money. Where made. Amount Total , 25, 25, 26, 26, 26, 27, * 29, 29, 3, 3,, /, Jun,e 3, 3, 6, 6, f 7, Jufce 8, 9, 9, 9, 0, 0, 0, 0, 0, 2, 2, 3, George French, Washngton, John Duer, Baltmore, S. Pleasonton and R. Forrest, Washngton, A. C. Cazenove, Alexandra, Wllam Lawrence, New York, James Whtehead etal, Phladelpha, - James Cox, Baltmore, John Duer, Baltmore, S. Grard, Phladelpha, George Crownnsheld 6t Co., Salem, George T. Dunbar, Baltmore, Rchard Smth, Washngton, Wllam Cochran, Boston, Rchard Smth, Washngton, Wllam Paton, Jun., Alexandra, Wllam Paton, Jun., Alexandra, Charles Page, Alexandra, Wllam Whann, Washngton, N. Waterman, Jun., Provdence, Charles Page, Alexandra, S. Elot, Jun., Washngton, S. Elot, Jun., Washngton, H. Remsen, New York, J. U. Tread well, Salem, Clement Smth, Georgetown, Clement Smth, Georgetown, N. W. & C. H. Appleton, Baltmore, - > Rchard Smth, Washngton, Guy Bryan, Phladelpha, Alexander Brown & sons, Baltmore, James Schott, Phladelpha, Rchard Smth, Washngton, $29,000 30,000 50,000 5,000 26,000 50,000,000, ,468 35,000 8,000, ,490 00,000 0, ,000 3, ,000 5,000 85, ,000 Indefnte, 90, ,000 30,000 20,000 50, ,000 50,000 20,000 30,000 25, 27, 25, 27, 28, 26, 28, 3, 3, 3, 3,, ft 3, 3, 7, 6, 2, 8, 8, 9, 2, 4, 0, 2, 0, 2, 0, 4, U, 4, 4,,, w, 9,, July 0,,,, 28,, w 96$, 3, 5, 96$ 5, 96$ 3, , 96$ 6, 9, 96$ 9, 96 0, 24, C 9, I July, July, 96$ 5, 9Gl 22, C 2, 96% < 5, C 6, 96} 5, 96$ 4, 24, July, 5, 98 5, # $2, ,738 90,000 25,468 7,62, , , , ,06 88 Georgetown, Baltmore, Georgetown, Alexandra, Washngton, Baltmore, Baltmore. $29,000 27, ,000 4,750 47, Washngton, ll, Georgetown, 35,000 Washngton, Alexandra, Alexandra, Alexandra, Alexandra, Washngton, Phladelpha, Phladelpha, Georgetown, Georgetown, Baltmore, Baltmore, Baltmore, Georgetown, Washngton, Phladelpha, Phladelpha, 24,490 00,000 0, ,000 5,000 85, ,000 60, ,000 30,000 72,375 2,625 45,000 50, ,000 50,000 Washngton, 30,000 $29,000 30,000 50,000 4,750 26, ,458 22,000, ,468 35,000 7,62 68, ,490 00,000 0, ,000 3, , ,000 85, ,000 60, , , ,000 30,000 20,000 50, ,000 50,000 20, ,000 H > H w o 8 2 > O M w

28 jr Contnued. to CO PROPOSALS OR OFFERS TO THE LOAN. ACCEPTANCE OF OFFERS. SUMS ACTUALLY PAID INTO THE TREASURY. When made. By whom. Amount. When accepted, Rate. Am* t n money or Treasuvy notes, for 00 dollars, 6 per cent, stock. When pad Amount pad n Treasury notes. Payments n money. Where made. Amount. Total , 4, 4, H, 4, 5, 5, 6, July July July 7, 22, 29, 29, 7, 7, 3, Wllam Whann, Washngton, R. Hgnbothom, Baltmore, Rchard Bache, Phladelpha, Rchard Bache, Phladelpha, W. Montgomery & son, Phladelpha, Rchard Smth, Washngton, Wllam Whann, Washngton, Alexander Kerr, Washngton, Rchard Smth, Washngton, Ephram Glman, Alexandra, John L. Boss, Newport, Rhode Island Owen Allen, Baltmoe, Rchad Smth, Washngton, Prme, Wad, & Sands, New York, John Tsdale, New Yok, $50, ,000 3,800 0,000 50,000 0,000 0,000 65,000 20,000 6,000 8,356 4,000 77,000 5,00 26,059 50,00 32, , 5, 4, 6, July July July July 5, 5, 5, 6, 6, 7, 23, 5, 30, 7, 0, 3, , 24, 20, 20, C 2, cjuly, 5, 5, 6, 9, 9, 7, 24, August, July 3, July 7, July, July 3, $3, ,366 38, , , , , , ,64 90 Washngton, Phladelpha, Phladelpha, Georgetown, Washngton, Washngton, Washngton, Alexandra, New Yok, Washngton, $50, ,000,35,000 0,000 65,000 20,000 8, , , $50, ,000 3,972 86,35,000 5, ,69 0,000 65,000 20,000 6,854 8,356 4,000 76,5 5,242 26,059 82,64 32, O H $3,6, $6,22, $9,284, At. At 96 J. At 97. At 98. At par. Total. Of the above amount n money there was pad n the Dstrct of Columba, In Baltmore, - In Phladelpha, - In New York, - $,042,22 59,874,88 50,845, $927, ,000 $32, $275,000 $4,000 $2,282,037 38,994,88 50,845, $4,762, $,047, $32, $275,000 $4,000 $6,22,457 32

29 85.] STATE OF THE FINANCES. 29 H. NOTICE. TREASURY DEPARTMENT, 5, 85. Arrangements are makng to dscharge the whole of the arrearages of the Treasury note debt, where the same became due and payable, as soon as a competent supply of current money can be obtaned at the seat of the several loan offces. Arrangements are also makng to furnsh a competent ssue of Treasury notes to assst n the re-establshment of a crculatng medum throughout the Unted States; but t has been ascertaned that an ssue of Treasury notes not bearng nterest, and fundable at 7 per cent., cannot, at ths tme, be employed for that purpose. Notce s, therefore, hereby gven, that funds haye been assgned for the payment of such Treasury notes, and the nterest thereon, as became due, or shall become due at the loan offce n Phladelpha, n the State of Pennsylvana, on the followng days, to wt: On the the 2st of November; the st and the th of December, S4. The st of January; the st and 2st of February; the 2st of Aprl; the st, th and 2st of ; the st, th and 2st ; and the st. th and 2st of July, 85; beng all the Treasury notes due, or becomng due, at Phladelpha pror to the st day of August, 85. And the sad Treasury notes wll accordngly be pad, upon the applcaton of the holders thereof respectvely, at the sad loan offce n the cty of Phladelpha, on the lsf day of August next; after whch day nterest wll cease to be payable upon the sad Treasury notes. And notce s hereby further gven, that funds have been assgned for the payment of such Treasury notes, and the nterest thereon, as became due at the loan offce n Savannah, n the State of Georga, on the followng days, to wt: On the st of Aprl; and the st of, 85; beng all the Treasury notes due at Savannah pror to th* st day of September, 85. And the sad last mentoned Treasury notes wll accordngly be pad, upon the applcaton of the holders thereof respectvely, at the sad loan offce n Savannah aforesad, on the ls day of September next; after whch day nterest wll cease to be payable upon the sad Treasury notes. And notce s.hereby further gven, that funds have been assgned for the payment of such Treasury notes, and the nterest thereon, as became due at Washngton, n the Dstrct of Columba, on the followng days, to wt: On the th and 2st of Aprl; on the st and 2st of ; and on the th of, 85; beng all the Treasury notes due at Washngton. And the sad last mentoned Treasury notes wll accordngly be pad, upon the applcaton of the holders thereof respectvely, at the Treasury of the Unted States, n Washngton aforesad, at any tme subsequent to the date of ths notce; and nterest wll cease to be payable upon the sad T easury notes after the st day of July next. And all Treasury notes hereafter payable at the Treasury of the Unted States n Washngton aforesad, wll be 'there punctually pad, from tme to tme, as the same shall become due and payable, and the nterest thereon wll cease on the day or days when such Treasury notes shall respectvely become payable. And notce s hereby further gven, that funds have been assgned for the payment of such Treasury notes, and the nterest thereon, as became due at the loan offce n Baltmore, n the State of Maryland, on the st of, 85. And that the sad last mentoned Treasury notes wll accordngly be pad, upon applcaton of holders thereof respectvely, at the sad loan offce n Baltmore aforesad, at any tme subsequent to the date of ths notce; and that nterest wll cease to be payable upon sad Treasury notes after the st day of July next. And all Treasury notes hereafter payable at the loan offce n Baltmore aforesad, wll be there punctually pad, from tme to tme, as the same shall become due and payable; and the nterest thereon wll cease on the day or days when such Treasury notes shall respectvely become payable. And notce s hereby further gven, that as funds n current money cannot at present be obtaned at Boston, n the State of Massachusetts, to pay such of the Treasury notes as become due and reman unpad at the loan offce n Boston aforesad, on the followng days, to wt: On the st of November; and the th and 2st of December, 84; the 2st of January; and the st of February, 85: Subscrptons n the prncpal and nterest of sad last mentoned Treasury notes wll be receved to the loan of twelve mllons of dollars, at the rate of dollars n prncpal and nterest, n Treasury notes, for 00 dollars of sx per cent, stock. The holders respectvely of the sad last mentoned Treasury notes may, alsb, at ther opton, receve drafts on Phladelpha and Baltmore for the amount of ther clams; or they may exchange the old for new Treasury notes, fundable at sx per cent, to nclude the prncpal and nterest now due. And notce s hereby further gven, that as funds n current money cannot at present be obtaned at the cty of New York, n the State of New York, to pay such of the Treasury notes as became due, and reman unpad at the loan offce n Neo York aforesad, on the followng days, to wt: On the st and th of December, S4; the st and th of January; the th of February; the th of March; the 2st of Aprl; and the th of, 85: Subscrptons n the prncpal and nterest of the sad last mentoned Treasury notes wll be receved to the loan of twelve mllons of dollars, at the rate of dollars of prncpal and nterest n Treasury notes, for 00 dollars of sx per cent, stock. The holders respectvely of the sad last mentoned Treasury notes may also, at ther opton, receve drafts on Phladelpha and Baltmore for the amount of ther clams; or they may exchange the old for new Treasury notes, fundable at sx per cent., to nclude the prncpal and nterest now due. And, fnally, notce s hereby gven, that, on the st day of August next, nstructons wll be ssued, forbddng the collectors of dutes on mports and tonnage, the collectors of the nternal dutes and taxes, and the recevers of all publc dues whatsoever, to receve n payment of such dutes, taxes, and dues, the bank notes of any bank, whch does not, on demand, pay ts own notes n gold and slver, and, at the same tme, refuses to receve, credt, re-ssue, and crculate, the Treasury notes emtted upon the fath and securty of the Unted States, n depostes, or n payments to, or from, the bank,n the same manner, and wth the lke effect, as cash, or ts own bank notes. The loan offcers of the several States are requested to make ths notce generally known by all the means n ther power; and the prnters authorzed to prnt the laws of the Unted States wll be pleased to nsert t n ther respectve newspapers* ' A. J. DALLAS, Secretary of the Treasury. I. NOTICE. TREASURY DEPARTMENT, 22,85. Funds havng been assgned for the payment of such Treasury notes, and the nterest thereon, as wll become due at Phladelpha, on the st day of August next, and on all subsequent days, por to the st day of January, 86:

30 3 FINANCE. * [No. 454 Notce s therefore hereby gven, that the sad Treasury notes wll be pad, on the applcaton of the holders thereof, espectvely, at the loan offce n Phladelpha, on the day or days when they shall respectvely become due, and nterest on the sad notes wll cease to be payable thereafter. The Commssoners of Loans n the several States are requested to make ths notce generally known by all the means n ther power; and the prnters authorzed to publsh the laws of the Unted States wll be pleased to nsert t n ther respectve newspapers. A. J. DALLAS, Secretary of the Treasury. K. Statement of moneys borrowed between the frst of October, 84, and the 30th September, 85, under the acts of Congress of the lath March, 82. From the Commttee of Defence of the Cty of Phladelph^ for whch 6 per cent, stock was ssued at par, $00,000 Of whch sum there was pad n the year 84, - - $50,000 And n the year 85, - 50,000 Statement of the temporary loans made n the year 85, (pror to the ls October, n that year,) under the several acts of Congress of the 5th November, 84, the 3d of March, 85, and 3th of February, 85.! Act under whch made. By whom made, Amount. Kate of nterest. When rembursable. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. 5, 5, 5, 5, 5, 5, 5, 5, 84, 84, 84, 84, 84, 84, 84, 84, Manhattan Company, New York, Mechancs 9 Bank, do Cty Bank, do Cty Bank, do Mechancs' Bank, do Manhattan Company, do Bank of Amerca, do Bank of the State of South Carolna, - $200, , ,000 75,000 75,000 75,000 75,000 50,000 7 per 7 per 7 per 6 per 6 per 6 per 6 per 6 per cent, cent, cent, cent, cent, cent, cent, cent 7 Mar. & 3, 85. dtto. Aug. 85. dtto, dtto, dtto. Dec. 85. $0,000 Mar. 3, 85, Mar. 3, 85, Bank of Vrgna,* Farmers' Bank of Vrgna,* $450, ,000 6 per cent. 6 per cent., 86. dtto. $650,000 Feb. 3, Feb. 3, Feb. 3, Feb. 3, 85, 85, 85, Bank of the Metropols, Bank of Washngton, Bank of Columba, Unon Bank of Alexandra, 6 per cent. 6 per cent. 6 per cent. 6 per cent. 3 years, dtto, dtto, dtto. $00,000 L. TREASURY NOTES BEARING INTEREST. Statement of the amount of Treasury notes ssued n the thrd and fourth quarters of the year 84, under the act of the 4h of March, 84. When remburs able. Boston. New York. Phladelpha. REIMBURSABLE AT Baltmore. Washngton. Rchmond. Charleston Total July 2 Aug. 2 Sept. 2 Oct. 2 Nov. 2 Dec Jan. 92,000 52,000 50,000 2,000 3, ,700 75,000 60,000 90,000 40, , ,000 30, ,420 50,000 23,60 387,000 3,300 05,400 29,000 2,700 50,000 94,200,600,820 05,000 00,000 30, ,600 74,060 4,060 68, ,240 40,000 00,000 5,000 60,000 45,000 7,800 20,000 2,500 0,000 60, ,000,000 27,700 5,000 2,700 4,900,00 3,80 50,460 5,000 50,000 3, ,00 04,000 57,700 79, ,200 2,500,600 0,000 00, , , ,700 45, ,580,02,380 68,60 37, ,700 $309,300 $2,50,560 $,825,980 $205*000 $828,340 $5,000 $50,000 $5,835,80 * These loans were repad n the month II of July, 85.

31 l j 85.] STATE OF THE FINANCES. 3 Amount of Treasury notes ssued n the frst and second quarters of the year 85, under the act of the 4th of March, 84. When rembursable. REIMBURSABLE AT Boston. New York. Phladelpha. Baltmore. Washngton. Rchmond. Charleston* Total. 86. Jan. 2 Feb. 2 March 2 Aprl 2 2 ^ 50, ,900 38,60 420,420 25,600 8,200 34,900,96,280 79,200, ,900 8,900 :,000 :,000 _ 34,620 65,900 5,00 45,900 8,400 82,540 5,000 2,200 2, , ,960,632,800 25,00 8,400 09,340 5,400,900 8,900 2,200 2,000,000 $50,000 $,025,080! $,44,980 : $,000 $27, $2,772,720 Recaptulaton of Treasury notes ssued under the act of March 4, 84. Amount ssued n the second quarter of 84, as reported to Congress by the Secretary of the T September 23, 84, Dtto, n the thrd and fourth quarters of 84, as above stated, - Dtto, n the frst and second quarters of 85, as above stated, -,392,00 5,835,80 2,772,720 Total amount authorzed to be ssued by the act, - - $0,000,000 Statement of the amount of Treasury notes ssued n te frst, second, and thrd quarters of the year 85, under the act of te 26th of December, 84. * When rembursable. Boston. New York. Phladelpha. REIMBURSABLE AT Baltmore. Washngton Kchmond. Charleston. Savannah. Total. - V 86. Feb. 2 March 2 Aprl 2 2 July 2 Sept. 45,000 2,000 ^ I 78,60,365, ,820 6,060 3,860 76,740 33, , ,020 54,80 40,420 45,480,636,80 224, ,900 55,200 80,00 2,900 8,000 0,500 33,000 9,380 0,000 56,800 50,000 33,580 40,000 ^ I _ 4,860 4,500 30,000 6,200 8,580 00, , ,440 3,08, ,000,620,300 23,260 00,60 289, ,360 3,440 0, ,280 77,900 64,80 40, ,000 $47,000 $4,664,240 $2,730,640 $280,380 $9,360 $44,780 $00,000 $342,000 $8,38,400 Statement of te amount of Treasury notes bearng nterest ssued pror to the ls of October, 85, under the act of the 24th of February, 85. Date Amount. 85. August 2, September, September, September 2, October, ^ # 33, ,600 02,000 36,900 24,00 Total, $694,600

32 3 3 FINANCE. * [No. 454 L Contnued. Estmate of the amount of prncpal and nterest of Treasury notes of every descrpton, whch wll come as a charge upon the Treasury durng the year 86. Dollars. Dollars. I. Treasury notes bearng nterest.. Such as ae charged upon the snkng fund. Amount whch became payable n 84, and whch was not pad, Amount whch became payable n 85, - Amount whch wll become payable n 86, - 2. Such as are payable out of any moneys n the Treasury not otherwse approprated. Amount whch wll become payable n 86, - 3. Such as are not rembursable n money, but may be funded for ss per cent. stock at par, or pad for dutes, taxes, or any publc dues whatever. Amount ssued pror to st October, 85, - Amount estmated to be ssued ftom st October to 3st December, 85, II. Small Treasury notes, not on nterest, not rembursable n money, but may be funded for seven per cent. stock at par, or pad for dutes, taxes, or any publc dues whatever. Amount ssued and rembursed, per precedng statement marked D, to 30th September, 85, - Amount estmated to be ssued and re-ssued from st October to 3st December, 85, Interest. The amount estmated to be payable for nterest on the notes bearng nterest s about Towards the rembursement of Treasury notes payable at Phladelpha, Baltmore, Washngton, Charleston, and Savannah, there has been advanced from the Treasury the sum of - - The amount of Treasury notes bearng nterest subscrbed to the loan pror to the st of October, 85, was, prncpal and nterest, - 83,6, And t s estmated that the amount subscrbed between the st of October and 3st of December, 85, wll be - 2,500, The amount of small Teasury notes funded for seven per cent, stock pror to the st October, 85, was - $3,38,0 00 And the amount estmated to be funded between the st October and 3st December, 85, s -,000, The amount estmated to be redeemed by payments for dutes, taxes, &c. pror to st January, 85, s Of Treasury notes bearng nterest, - - SI,500, Of small Treasury notes, - 00, Leavng, as the amount outstandng at the end of the year 85, and whch wll come as a charge upon the Treasury n the year 86, of prncpal and nterest of Treasury notes of all descrptons, - 4,42, ,000 00,536, ,66, ,38,0 00,600, ,799, ,847, ,772, ,49, ,38, , , ,932, ,642, ,575,850 00,000, ,575, ,6, $5,458, th CONGRESS.] No [st SESSION. PROHIBITION OF THE IMPORTATION OF COARSE COTTON FABRICS. COMMUNICATED TO THE SENATE, DECEMBER 3, 85. To the honorable the Senate and House of Representatves of the Unted States n Congress assembled: The petton of the undersgned ctzens of the Unted States, Concerned n the manufacturng of cotton fabrcs, n behalf of themselves and others nterested n smlar establshments, respectfully showeth: That, durng the late season of domestc pressure, arsng n a measure from the nterrupton of the foregn commerce of the country, your pettoners, together wth numerous others, ctzens of the Unted States, undertook, and after a consderable expendture of money and of labor, have at length partally succeeded n the erectng and, puttng nto operaton extensve works employed n the manufacturng of cotton goods. That large sums of money have been expended by your pettoners and others upon these objects. That, by means of these exertons, and of the commodtes furnshed from these sources, the pressure of the late war upon the great body of the communty was consderably allevated. That, from the dffcultes nseparable from the establshment of new branches of manufacture; the scarcty of persons properly qualfed to superntend ther operatons; the enormous compensatons demanded by those whose skll and experence were requste, and the hgh prce of labor throughout the country, your pettoners have not as yet been remunerated for the heavy expenses whch they have ncurred, whle the prospect whch s just openng of a free and unrestrcted mportaton of the same artcles of foregn manufacture, threaten to deprve them of every expectaton of a reasonable proft, and, at one blow, to crush tbe establshments themselves, and to snk the captal whch has been nvested n them. Your pettoners, under these crcumstances of mpendng run, respectfully entreat the nterposton of your honorable bodes, to preserve them and the country from, these dsastrous and fatal results; and more partcularly