bought by the actual settlers, not directly of the United States, but of the several States, or of individual owners. As the wild lands owned by several of the States, or by companies or individuals, whether belonging to them through gist, sale, or otherwise, from either former Governments or the United States, shall increase or diminish in quantity and price, the new sales by the United States are likely to be less or more, and the above proportions to become by those as well as by numerous other cir. cumstances somewhat affected. The whole sales of public lands for speculation and investment, as well as for immediate cultivation will, therefore, from various causes, some of which have already been specified, probably fluctuate between two and fire millions of acres, produeiog Ffrom three to six millions of dollars a year till 1842, and indeed not often exceeding the maximum will most of the rich soils are gone.

A document has been carefully prepared, which in some degree verifies these general views, as it shows that the whole sales to the close of 1834, deducting about six and one-third millions of acres, which reverted under our foriper systém, have been only about thirty-seven and a half millions of acres during forty-five years, or on an average only about three-fourths of a million of acres yearly, for immediate cultivation and every other purpose. This quantity sold, with about sixteen millions given away as bounties in the last war, and for schools, colleges, internal improvements, and other public objects in the new States, being together almost half as much as all the sales, would, through the whole time, be taking from the public lands by both gist and sale, and for all purposes, little more, if any, when compared with our population, and the additions to it at different periods, than three millions of acres aunu. ally would be now. It may be instructive, in respect to the estimate of our future proceeds from lands, to recollect that after the present system commenced, the sales never a mounted in fact to one million of acres a year till 1815 nor to two millions a year till the temptations of the credit system, and the great rise in the price of cotton to 26 and 34 cents per lb. induced larger purchases, extending to over two millions of acres in 1817, and about five and a half millions in 1819 ;- and thus even fisteen years ago exceeding in quantity, by nearly a million of acres, the large sales of 1834, and exceeding them in the sum promised to be paid, by the almost incredible amount of more than twelve millions of dollars. But the fall of collon in 1820 to only about half its former price, combined with other causes, left the purchasers in debe to the Government over twenty-two millions of dollars, and with the change from the credit to the cash system, reduced the sales again to much less than a million of acres a year, caused nearly six millions of the former sales to severt, and keep them down to less than a million in every year after, till the rise of cotton in 1825 gave a new impulse, which, being aided by other powerful causes, the sales gradually enlarged till they reached a million again in 1829. Sioce that, increasing still more rapidly, they have ex. ceeded, during 1834, four millions of acres and during 1835 probably nine millions. Among those other causes, the more extensive introduction of steam power on the western rivers avd northern, lakes, with the public

improvements in their naviga:ion, and the increased facilities of intercourse by railroads and canals, bave of late added much to the sales of the public lands beyond previous years, and beyond the proportional in

1

crease of population. To the force of this, causes have been joined,
during the last three years, as formerly suggested, the effect of the pre-
emption law, the increase in the price of cotton, and the unusual abun-
dance of surplus capital in 1835, seeking new investments. But much of
the great difference to be produced by these causes has, perhaps, hạp-
pened already. What extraordinary increase of population and demand
for vew lands in the Uvited States, may bereafter occur by emigration

from Europe, compared with former years, must depend on so many con-
ringencies, both here and there, such as good or bad Governments, pros.
perity or decline of manufactures, and a taste for emigration to new lands
in other quarters of the world, as at present to prevent any person from
making a safe estimate.

Difficulties in Estimates as lo Customs and Lands.
Comparative and speculative view's, connected with the subject of our
receipts from customs and lands, could be further extended, but their
practical utility might be deemed problematicat, as sufficient is believed
to have been already stated for all general purposes. Greater confidence
is felt in the estimate submitted for the receipts from custoins in 1836, as
that offered last year for 1835, founded ou somewhat similar data, has
not varied from the ascertained and estimated actual receipts over a
million of dollars; but the actual receipts from lands have, for the
various reasons before explained, differed largely'; and, united with the
failure to pass some usual and anticipated appropriations at the last
session of Congress, have caused most of the increased surplus now in
the Treasury. The difficulty in attaining much certainty in estimating
the receipts from either castonis or lands in any particular year in a
country so new, enterprising and prosperous as ours, has ever been con-
siderable, in addition to the fluctuations we always shall be liable to
from short crops, pestilence, and war. But this difficulty will be more
strikingly exemplified till. 1842, under the material alteration from credit
to cash payments, and under the continued biennial changes to which the
Tariff is now subjected. It was showo-mn 1822, in a report of a committee
of the House of Representatives, that from 1802 to that time, the esti-
mates of our whole receipts differed, either by excesses or deficiences,
froin the actual receipts in different years, from one to forty-three per
cent, and in customs alone, from three to seventy-thrée ; being an aver-
age of about sixteen per cent. per annuin. The difference since 1822
has been carefully examined, and is found to vary from less than one per
cent. to over forty-one, and averages annually about thirteen per ceni.
But the eflects of the irregularity of our actual receipts into the Treasury
in any particular year, whether over or under the estimates, were less
noticeable, and were of less comparative importance, before the final
payment of the public debt, at the close of 1834, as that payment, from
time to time, corrected any irregularity, and superseded what will often
hereafter be inevitable without due precautiou : the necessity of a resort
to new legislation whenever any cousiderable excess or deficiency hap-
pens to occur in the whole revenue.

Besides what has already been remarked on the influence which the
increased cultivation of cotion in this country has in various ways exer-
cised, and is likely to exercise hereafter, in our revenue from customs and

lands, it might be made a subject of further and very interesting inquiry in connection with the uncertainty of the estimates on those subjects, affecting, as that cultivation does, more remotely, not only our revenue from lands and customs, but the balance of trade and the export of specie, as well as the continuance, by means of mutual dependence among great interests, of many of our peaceful and prosperous relations, both at home and abroad. But without entering, on this occasion, joto further details coucerning, any of these points it may be mentioned as a very striking result connected with the last one, and as furnishing a strong presumption in favor of greater exemption hereafter from Auctuations by war and commercial restrictions, that while the quantity of cotton exported from this country has increased from half a million of pounds in 1790, to over three hundred and eighty millions in 1835, and has exceeded in value, during six of the ten last years, all our other exports of domestic products of every description, the manufacture of it at home, and chiefly in the northern States, has increased, from consuming only a few bales more, to ninety millions of pounds yearly, and to that extent creates a new and strong bond of reciprocal advantage and harmony. And that while we now furnish, instead of the small quantity in the first years of our Government, quite fifteen-sixteenths of the whole consumption of raw cotton

by England, and seven-tenths of that by France, all the present exports of it to Europe, from all the rest of the world, do not probably equal, if those two nations could obtain the whole, one-third of what they now consume, or one-fourth of what they now import from the United States alone. And thus, while neither of them produces any of the raw article, except a little in some remote dependencies, that they have an annual manufacture now relying on it, ayd chiefly on the United States, equal in France to eighty millions of dollars, and in England to one hundrer and eighty millioos of dollars ; and constituting in the latter, after it supplies her own large necessities at home, over one-half in value of her great annual exports to all quarters of the globe.

Explanation of Estimaled Receipls from Miscellaneous sources.

The estimate of receipts from bank dividends has been inade at the usual rate, computed on the present amount of stock still owned by the United States, independent of what belongs to the navy pension fund. Should the bank divide a part of its capital, after the 3d of March next, and before the close of the year 1836, the dividends received for interest or profits, will probably be somewhat lon er ; but, on the other hand, there will then be received into the Treasury, instead of them, a due proportion of the capital stock,

This Department made reasonable inquiries of the bank itself, as to its probable course, in respect to the division of its capital, with a view to apprize Congress of the revenue which ought to be anticipated from that source in 1836, but, extraordinary as it may appear, at a period so near the close of its charter, and after the discontinuance of several of its branches, it will be seen by the correspondence annexed, that the bank had then come to no decision on the subject.

The sales of bank stock to the navy pension fund, will probably not be deemed advisable by Congress, after the 3d March next, and hence the receipts from those sales have been estimated less than usual.

It is supposed that the other receipts from miscellaneous sources will correspond nearly with those in 1835, except that the sum of $6,235, be. longing to this Government out of the Neapolitan indemnity, for the traosportation of seamen, at the time our vessels were seized, having in the first instalment, been promptly and honorably paid, according to treaty, has since the last annual report, been adjusted, and credited under his general head. It gives me pleasure to add, that about $100,000 more

has been secured by means of that indennity, on debts of long standing due from several of the claimants to the United States, and over one-fifth of it has already been paid into the Treasury. In-pursuance of the act of Congress on the subject, the balance of the first instalment, as soon as the awards were completed, was paid to those entitled to it, and certificates were issued for the remainder. All due under the second instalment has since been punctually discharged by the King of the Two Sici. lies, to the agent of the treasury abroad, and after some delay in its remillance from Naples to Paris, with a view to make it in a manner most advantageous to the claimants, the whole has been received here, and the nett proceeds, as soon as ascertainable, immediately paid over.

Explanalion of the Estimate of Expenditures. The expenditures in 1836 for ordinary purposes are, it has been seen, estimated at a still lower sum than they were for 1835. But as the present is a long session of Congress, the contingent excesses of appropriafinns beyond the general estimates, explained in the last annual report, have been submitted as likely to be half a million larger. It is gratisying to state, that independent of the payments towards the national debi, leaving the community with all its capital and energies entirely from that cause unburdened and untrammelled, the actual expenditures of the General Government have on other subjects since 1833, been reduced about lour and a half millions of dollars a year, or near wine millions in 1834 aud 1835; and the country at large, during the same period, relieved froni taxation by reductions in the tariff, equal to nearly twelve and a hall millions a year, or about twenty-five millions in all. The probabili. ties as to still further reductions in our expenditures for ordinary purposes during a number of ensuing years, excluding any extraordinary grants on account of the present large surplus, or other causes, cau best be weighed by a retrospect to the chief subjects of increase during a few past years, and by a discrimination between the items, which are in their character pernaucni or temporary, aud which still exist or have aleady expired.

The chief items of increased expense during those years which (froin an increase in some of our national establishments, caused by obvious reasons in most cases, such as greater population and business, and a rapidly extending frontier,) will probably be somewhat permanent, if not in some instances progressive, are most of the large additions to the legislative expenses-the gradual auginentation in appropriations for the ju

diciary and the salaries of district judges, the new bureau of Solicitor of the Treasury, the corps of mounted dragoons in the araiy, the increased, number of, and pay to officers in the navy, and the extra compensation to officers of the customs since the great reduction in the tariff. The chief additional items of expenditures during the last few years which may be deemed temporary in their nature, but which still continue in a

greater or less degree, are the large increase in the extinguishment of Tudian titles, and in grants of revolutionary peosions; the payment of Virginia commutation claims, great additions to our light-houses and custom-houses ; opening many new roads in the Territories; the continua

lion of the Cumberland road; the survey of the coast ;' more numerous allowances of miscellatieous claims; and the building of branch miots, commenced the prescut year, though their future support will be a new firem of permanent expense. The issue of Virginia land scrip, virtually receivable instead of money for lands, is, in substance, though not in forin, another large item ; because, though not iucluded in the usual ex. hibit of expenditures, it has in the last four years exceeded a million of dollars, and will in this, and the ensuing year, probably extend to eight bundred thousand more. The items of magnitulle in our expenses which have lately existed, but are now either terminated or suspendedl, are the building of the Potomac bridge ; though its repairs, lighting, and draws may hereafter be a durable charge. Macadamizing Pennsylvania Ave. oue, and several grants of money for various other purposes. in the District of Columbia ; repairs of the Cumberland road ; finishing and enlarging some of the public buildings here; refunding large amounts of duties under former laws; the expenses of the war with the norihwestero Indians in 1833; repayments for advances during the war of 1812; a large reiinbursement of the naval pension fund ; several special expired appropriations towards naval onjecis; and almost every thing connected with the public debt. A tabular statement further illustrating many of these changes, as well as others under all the niost important heads of expeuditure, by exhibiting the sums yearly paid under each maierial one from 1816 to 1834 inclusive, has been prepared with care, but jɛ so voluminous that it will not be submitted to Congress until some other appropriate occasion.

In the estimates for extraordinary purposes the present year, it will be seen that most of the increase is called for by the omission to pass the annual appropriations last year for fortifications, and by the unusually large surplus in the 'Treasury, which is not wanted for ordinary objects, and which, it is supposed, can be applied usefully to hasten those great improvements connected with our military and naval defences, and which are of a character admitted by all to be national, beneficial, and constitutional. Under our high state of 6nancial prosperity, and reposing in peace, the best period for due preparation for war, the undersigned consides the Treasury in a proper condition to meet any ineasures which the Executive or the appropriate departments have recommended for these desirable olijecis, as well as any similar and additional ineasines which Congress may be likely to think required by prudent foresight, aud proper regard for national character' and safety.

V.-SURPLUS IN THE TREASURY, AND DISPOSITION OF IT. It has been shown that the available balance in the Treasury, over alll outstanding appropriations, on the 1st of January, 1836, is estimated at about ten and a half millions ; the expenditures for the ensuing year, for all purposes, whether ordinary or extraordinary, enumerated in the schedules at more than twenty-three inillions, and the receipts at less than twenty millions. Hence it follow's, that if the appropriations made, and the re