« AnteriorContinuar »
State of the Finances.
The expenses of the year 1806, which must be defrayed out of those resources, are, like the revenue, either of a permanent nature or temporary.
The permanent expenses are estimated at 11,450,000 dollars, and consist of the following items, viz : 1. The annual appropriation of eight millions of dollars for the payment of the principal and interest of the public debt, of which more than 4,000,000 dollars will be applicable to the discharge of the principal, and the residue to the payment of interest 2. For the civil department and all domestic expenses of a civil nature, including invalid pensions, the lighthouse and mint establishments, the expenses of surveying public lands, the third instalment of the loan due to Maryland, and a sum of 150,000 dollars, to meet such miscellaneous claims or grants as may be allowed by Congress 3. For expenses incident to the intercourse with foreign nations, including the permanent appropriations for Algiers
4. For the Military and Indian departments, including the permanent appropriations for certain Indian tribes
5. For the Naval establishment, (exclusively of deficiencies for the service of the years 1804 and 1805, which are estimated at $600,000)
day of June, 1805, was 990,000 dollars. This apparent
Paid in 1804, to the Navy Department, un-
Paid in 1805, to the said De-
And leaving an unappropriated surplus, es-
But which will be more than absorbed by the Navy deficiencies above-mentioned.
The moneys actually received or to be received into the Treasury, on account of that fund, prior to the 1st day of January, 1806, are estimated at about 600,000 dollars. The residue will be received between that day and the 31st of March, 1807, and credit has been taken for a sum of 900,000 dollars on that account, in the preceding estimate of the receipts of the year 1806. Public Debt.
The payments on account of the principal of the pub-
It appears from the preceding statement, that the permanent revenues of the United States will, during As the exportation of the specie necessary to disthe ensuing year, exceed the' permanent expenditures charge the last-mentioned instalment, would have more than one million of dollars; and that the mon- been sensibly felt, it was found eligible to pay it in eys already on hand, together with the temporary re- London, in conformity with the authority given by the sources of the year, will, after leaving the sum which act of the 3d of March, 1805; and the operation was it is always necessary to keep in the Treasury, be suf-effected at par, by the Bank of the United States. ficient to discharge the Navy deficiencies, and the whole amount of the claims assumed by the convention with France, the large receipts of last year rendering it unnecesary to recur for that object to the loan authorized by the act of the 10th of November, 1803. Mediterranean Fund.
It appears by the statement B that the additional duty of two-and-a-half per cent. on goods paying duties ad valorem, which constitutes the "Mediterranean fund," amounted during the last six months of 1804, to 563,038 dollars. And it is ascertained that the amount of duty accrued during the year ending on the 30th
It appears by the same statement D,
Evidences of Public Debt.
deferred stock, a charge which com-
3. More than one-third, and which
On account of the principal of the pub-
- $22,112,792 27
In order to give a more general and concise view of the receipts and expenditures of the United States, during the four years, commencing on the 1st day of April, 1801, and ending on the 31st day of March, 1805, than can be derived from the annual printed accounts, a statement, marked H, and several explanatory statements, marked H 1, to H 8, have been added to those which usually accompany this report.
From those it appears, that a sum of fifty millions six hundred and sixty-seven thousand four hundred and sixty-seven dollars and four cents, has been paid into the Treasury during that period, viz: From duties on tonnage, and on the
19,281,446 57 $49,665,527 56
It is sufficiently evident, that, while one-third of the national revenue is necessarily absorbed by the payment of interest, a persevering application of the resources afforded by seasons of peace and prosperity, to the discharge of the principal, in the manner directed by the Legislature, is the only effectual mode by which the United States can ultimately obtain the full command of their revenue, and the free disposal of all their
importation of foreign merchandise $45,174,837 22 resources. Every year produces a diminution of interest,
From all other sources, (including $1,596,171 43 cents, arising from the sales of Bank shares and of public vessels)
and a positive increase of revenue. Four years more will be sufficient to discharge, (in addition to the annual reimbursements on the 6 per cent. and deferred stocks,) the remainder of the Dutch debt, and the whole of the eight per cent., Navy six per cent., five and a half per cent., and four and a half per cent. stocks. As the portion of the public debt which shall then remain unpaid, will consist of the six per cent. deferred, and Louisiana stocks, neither of which can be reimbursed, except at the periods, and in the proportions fixed by contract, and of the three per cent. stock, which its low rate of interest will render it ineligible to discharge at its nominal value, the rapidity of the reduction of the the contracts, will, after the year 1809, depend on the debt, beyond the annual reimbursements permitted by price at which purchases may be effected. And, should circumstances render it eligible, a considerable portion of the revenue now appropriated for that purpose, may then, in conformity with existing provisions, be applied to other objects.
All which is respectfully submitted.
ALBERT GALLATIN, Secretary of the Treasury. TREASURY DEPARTMENT, Dec. 9, 1805.
Evidences of Public Debt.
law authorizing the receipt of evidences of the stock, calculated on that principle, and on a sup public debt, in payment for the lands of the Uni- position that a six per cent. stock is at par. for the ted States, passed on the 3d day of March, seven-first day of every quarter from the 1st of January, teen hundred and ninety-seven.
Although the letter having been received only a few days ago, it has not yet been ascertained whether the facts alluded to are, in this instance, truly stated, there is no doubt that such abuses may take place, and that, whilst the law continues in force, it will be difficult to prevent them.
Indeed, it cannot be doubted that, with very few exceptions, the law is of no utility to actual purchasers. So far as relates to the reduction of the public debt, the act is useless, since the annual appropriation of eight millions of dollars has been made; and it may, on the contrary, by creating a competition in the market, impede the object whenever it should be thought proper to apply a part of the appropriation to purchases of the debt. To this may be added, that the uncertainty resulting from the provision of the payments in specie, which might otherwise be relied upon, deranges the general operations of the Treasury.
I also beg leave to observe, that, by the act of the 8th of May, 1792, and all the subsequent acts contain a similar provision, the Commissioners of the Sinking Fund are authorized to purchase the debt of the United States at its market price, if not exceeding the par or true value thereof.
This last limitation does not seem sufficiently explicit; but the construction heretofore adopted, and which will be, of course, adhered to, unless altered by an explanatory act, is, that, by true value, is meant the nominal value or amount of the stock. It follows, that, on the one hand, the Commissioners may give one hundred dollars for every nominal hundred dollars of the three per cent. stock, provided they shall not give more than the market price; whilst, on the other hand, they are, in fact, precluded from making any purchases of the eight per cent. stock, as its market must necessarily exceed its nominal value.
Permit me, therefore, respectfully to submit the propriety of fixing, absolutely, by law, the price which the Commissioners may give for stock. That for the six and deferred stock may remain as it now stands, that is to say, not to exceed the nominal value of its unredeemed amount; the limitation in relation to the three per cent. stock may be easily fixed, at any rate which Congress may think proper.
That for the eight per cent. stock is more difficult to fix, because its sinks, every quarter, in value, and will continue so till the first day of January, 1809, when it becomes redeemable, and therefore, equal to its nominal value. It may, in the mean while, be considered as consisting, first, of a six per cent. stock, payable at the time abovementioned, and worth par; secondly, of an annuity of two per cent. a year, (or rather at the rate of half per cent. quarterly) which will cease, also, on the first of January, one thousand eight hundred, and when the stock will be paid off.
The annexed table shows the true value of the
1806, to the 1st of January, 1809. It must, however, be observed, that, from the first day, till within fourteen days of the end of each quarter, the stock will progress a little in value, as the time of receiving the dividend approaches. But on that account, and because the variations in the prices of stock do not ascend to such minute fractions as are exhibited in the table, it may be more simple to fix the limitation by the gross amount of the two per cent. annuity which may, at the time, be still demandable, without making any deduction for the discount. The commissioners would, on that principle, be authorized to give no more that 106 per cent. during the first quarter of the year 1806, no more than 105 per cent during the ensuing quarter, and so on, diminishing half per cent each quarter, so as to give no more than 100 per cent. during the last quarter of the year 1808, and paying at par, according to contract, the residue of the unpurchased principal, on the 1st of January, 1809. There are two other limitations, in the powers of the commissioners to purchase stock, which may require some modifications. By the first, no purchase can be made, except during the first thirty days of each quarter a provision, the object of which I cannot perceive; as the situation of the Treasury and the price of stock may often render another more eligible. The other directs the purchases to be made by a known agent, and by open purchase, or by receiving sealed proposals; and, although it may be more eligible for the commissioners themselves to make the purchase in that way, because it will prevent any improper imputation attaching to their conduct, it is not less true that that mode must necessarily raise the price of stocks, and prevent any purchases on favorable terms.
Although there are yet considerable parts of the public debt which may be reimbursed, as purchases may, however, be found, under certain circumstances, more advantageous, to the United States, I have thought it my duty to lay these observations before the Committee of Ways and Means. But I beg, at the same, time to be indulged in expressing my opinion, that a sinking fund which acts by purchase is better calculated to raise the prices of stock, and as an engine to favor loans redeeming it on reasonable terms. And as the and an increase of debt, than for the purpose of nature of the existing species of stocks will offer whole redemption, within the time contemplated a powerful, perhaps insuperable obstacle, to the by the Legislature, I intend, in a subsequent com munication, to submit to the consideration of the committee, a plan for the conversion of the old six deferred and three per cent. stocks into a six per cent. stock, which may be redeemed within the expected period.
I have the honor to be, &c.
An estimate exhibiting the true value of one hundred
The Secretary of the Treasury respectfully reports to the Commissioners of the Sinking Fund: That the balance remaining unexpended at the close of the year 1803, and applicable to payments falling due after that year, which balance, as appears by the statement B, annexed to the last annual report, amounted to one million three hundred and fortynine thousand one hundred and thirty-six dollars and fifty one cents - $1,349,136 51 105 04 Together with the disbursements made during the year 1804 out of the Treasury, on account of the principal and interest of the public debt, which disbursements, as appears by the statement C, annexed to the last annual report, amounted to eight millions two hundred and fifty-nine thousand eight hundred and forty-five dollars and fifty-five cents And with a further sum arising from profit on the remittances from America to Europe, purchased in the year 1804, which profits, as appears by the statement D, annexed to the last annual report, amounted to forty-five thousand forty-nine dollars and twenty-five cents
104 61 102 85 100 98
Extract of a letter, &c. "The clerks in that office are engaged in what they call the stock business. They get stock transferred, in payment for the lands, of such people as will pay them their money without taking an office receipt. Now, the grievance that I would complain of is, that it is almost impossible to get business done in that office, unless the person applying will consent to let them have their money that they may pay, in stock. As for my part, I had rather do my own business. When a man goes into the office, one of the clerks addresses him, that he cannot have his business done, unless he waits two or three days; and recommends to him to leave his money with another one, which I suppose to be a clerk also, who offers to do the business for him, provided he will let him transfer stock for his payment; and thus they worry many people out of their money. As to this stock business, I know nothing about it; and as it is no advantage to me, I had rather pay my money and get my receipt, without further trouble."
[Communicated to the Senate, Feb. 5, 1806.] The Commissioners of the Sinking Fund respectfully report to Congress as follows:
That the measures which have been authorized
G. CLINTON, President of the Senate.
JAMES MADISON, Secretary of State.
· 4,008,022 01
Relations with Spain.
That, during the year 1805, the following disbursements were made out of the Treasury, on account of the principal and interest of the public debt: 1. On account of the reimbursement and interest of the domestic debt
2. On account of domestic loans, obtained from the Bank of the United States, viz: on account of the principal 700,000 00 On account of the interest 56,170 12
3. On account of the domestic unfunded debt
4. On account of the principal and interest of the foreign debt, and of the interest on the Louisiana stock
Amounting, altogether, as will appear by the annexed list of warrants, C, to seven millions three hundred and twenty-eight thousand five hundred and nine dollars and seven cents
7,328,509 07 Which disbursements were made out of the following funds, viz:
1. From the fund constituting the annual appropriation of eight millions of dollars, for the year 1805, viz: from the fund arising from interest on the debt transferred to the Commissioners of the Sinking Fund, as per account I - 711,737 41 From the funds arising from the sales of public lands, being the amount of moneys paid into the Treasury from 1st July, 1804, to the 30th June,
1805, as per account K 553,521 63 From the proceeds of du
ties on goods, wares,
nage of ships or vessels 5,904,839 37
Will be accounted for in the next annual report, in conformity with the accounts which shall then have been rendered to the Treasury Department. That, in the mean while, the manner in which the said sum has been applied is estimated as follows:
1. The repayments into the Treasury, on account of principal, have, during the year 1805, amounted, as by the above-mentioned statement E, to $66,703 02 2. The sums actually applied, during the
year 1805, to the payment of the princi-
2d. Paid on account of in-
- 4,142,853 18
As will appear by the estimate F. 3. The balance remaining unexpended at the close of the year 1805, and applicable to payments falling due after that year, is estimated, as per estimate G, at 9,762,621 73
That no purchases of the public debt have been made since the date of the last report to Congress.
And that the statement H. exhibits the amount of stock transferred to the Commissioners of the Sinking Fund, in trust for the United States, to the 31st December, 1805, including the sum of $98,909 41, being the aggregate of the several species of stock transferred in the year 1805, in payment for public lands. All which is respectfully submitted.
ALBERT GALLATIN, Secretary of the Treasury. TREASURY DEPARTMENT, Feb. 4, 1806.
[Communicated December 10, 1805.]
To the Senate and House of
Representatives of the United States:
The enclosed documents relating to my Mes87,434 22 sage of the 6th instant, not being ready at that date, I thought it better not to detain the Message: but to communicate these papers afterwards, as