Newspaper Page Text
f t F it t: " 1 -fe
w , i f ,t i - i r ' - , a v UNION. THE CONSTITUTION AND THE LAWS THE GUARDIANS OF OUR LIBERTY Vol. XXI. Til I II D A V, Jl.K SI, - 1841, Io. 1078.' Report of the Sccrclary of the Treasury on Ihe, Finances, &C. . ----- - .. i la obedient to the directions of the act of Congress of the lOih of Slay, 1800,! rippli-mentaiy to the Act to establish the Treasury Department," the Secretary of the Treasury retpecuuay suomus roe following report; . Or the Puhlie Rettnut and Expenditure: . The receipts and expenditure for the year 1810 were as follows: Tho available balance ta the Treasury on the 1st of January, 1810, (exclusive of amount deposited viih the States, trust funds, and in demnities, and the amount due from banks which failed in 1837.) was, as appears by the book of the Register of the Treasury, $3,603,083 60 5 The receipts into the Treasury during the year 1810. were, from . Custom', - - - - - 13,439,502 17 Lands, - . - ... . . . '8,292,283 58 Don J of Ihe Bank of the United States, ' . . 1,774,313 80 MicIIaneous and incidental sources, . . ' 283,838 23 Banks which failed io 1837, - 118.629 55 Treason notes issued, . . . v 5,589,517 51 t - - -Kara! service?' - "',.". Public debt, ' - . . . Expenses of ihe extra session of Congic, -25.187,738 81 Making, - The expenditures in the same year were, for Civil list, foreign intercourse, ana miscellaneous. Military department, Naval department, . -Public debt, AdJ outstanding warrants issued prior to 1st Jan.l8il, Treasury notes redeemed, including interest, . 28,830,620 41 5,402,030 98 10,800,230 45 0,031.083 88 11.982 77 1,416.334 28 4,015,802 03 -27,803,475 41 Leaving a balance in the Treasury on the 1st January, 181 1, of The receipts from the 1st Jan. to the 4 th March, 1811, were (say) 887,345 03 From Customs, Land, - Miscellaneous and incidental aourres, Banks which failed in 1837. . Treasury notes issued per act of 31st March 1840, Treasury notes issued under act of 1 5th Feb. 1 84 1 , Bond of the Bank of the United States, 1,074333 40 386.148 50 31,319 63 18,000 00 1,110,611 08 673,681 32 17,913 00 4,212,540 07 Making, with the balance in the Treasury, January 1, 1811, The expenditures for the same period were Civil list, miscellaneous, and foreign intercourse, Military department, ... val department, Public debt, . . ...... . Treasury notes redeemed, including interest, 5,199,883 10 013.317 14 2,273,037 11 759,319 60 3,012 70 rm .son no. 4,627,100 04 L?avlng the balance in the Treasury on the 4th of March, 18 11, 572,718 40 The balances of appropriations outstanding on the 4th of March; 1811. were Statement A.V Civil, foreign Intercourse, and miscellaneous, - ......... 5,237,231 29 Military. . - - - - 15,991,803 15 Natal, - .... 6,910,263JJ9 Treasury notes issued prior to the 1st of January, 1811, and out- aUndingonthedthofMarch, 1811, - - - 3,873,220 00 Dj. issued under the act of 1840, from 1st of January to the 4th of March, 1811. which may, and most of which probably will, be pre- ecnted in payment of public dues during the year 1811, lateral estimated at about Making in the aggregate Mai in about. The ways and means in the power of. the Treasurr. and which will probably accrue ondcr existing laws, are as follows: I. Funds in the Treasury fas per statement C.i $614,331 10 2. Treasary notes authorised by art of Feb. 15, 1811, 1,505,913 91 . tsuinatea receipts from the customs, - uo. do. the lands, - Do. do. miscellaneous sources, Making ' " . 11,151,693 37 3,000,000 00 700,000 00 50,000 00 . 5,900,303 07 And leaving a deficit of-- . - To which add the sum recommended to be Lvot in the Treasurr to meet any emergencies of the public Kroceiz. - - 5,23U83 33 f . Making an aggregate of . . . 0,251,383 30 In another cart of this nancr the views of the Dcnartment as to the mode of nro- viding for the above deficit, together with the reidue of the existing public "debt? will be presented. : - ; . ' From the year 1818 to 1837, a period of twenty-one yean, the rtre- nuea constantly exceeded the expenditures- ihe average annual surplus during that time was $11,481,228 87, se tablet 1 and 2.) making an aggregate excess of $210,713,761 27. Of this there was applied to the extinction of die national debt $208,792,1 27 4 1, and there was under the provisions of the act of the 23d of June t 1836, deposited with the states, $23,101,614 91, and there remain ed on the 1st of January, 1837, in the Treasury of the U. States, including the 4th instalment due to tho states, a surplus of 17.109.473 SO There were, also, outstanding debt due and falling due to the Trea sury, arising irom omcr sources man those ol the ordinary revenue, and which were paid between the 1st of January, 1637, and the 4th of March, 1311, the amount of I see statement u - . 9.124.747 00 There were also issued within that pcried, and outstanding on the 4th or March, IS II, Treasury notes to the amount of - - 5,613,512 40 Making the aggregate available means which were in the Treasury on me ist oi January, 18J7, ana wbiclt came into tt prior to the 4 di of March, 1 84 1 . over and above the current revenue. . - 3 1 .882.732 60 r rom which deduct the amount (less the trust fands) remaining in tho treasury on the th ot 3larcn, isii, - ....... And there appears an excess of expenditure over the current revenue of. . . - - . w . . . $31,310,020 1,110,611 03 30o;ooo 00 33,129,010 50 Of this there will be required for the service of the current year 2 1,210,000 00 Additional appropriations required by the War Department for tho year 1811, viz. Fortifications and works of defence, - 1,133,500 00 For annamcntt of fortificatNHis and ordnance stores, 220,000 00 For payment of arrearages and current expenses, and tak ing care of public property on road?, harbora, rivers, &c. 40,199 12 For arrcaragos for preventing and suppressing Indian hos- , tilitics, - . osa,oo pu 2,521,335 99 Making The actual and estimated means under the existing laws to meet these demands are, viz: The available balance in the Treasury on the 4 th March, 1811, (See Statement B.) - 610,803 12 Treasury notes authorized under the act of 1810, issued after the 3d of March, 1811, " 413,592 7 Treasury notes authorized by the act of 18 II, to bo issu ed after the 4th of March, 1811, 5,000,000 00 Receipts from customs estimated at - 12,000,000 00 Reccints from nublic lands. - ' 2,500,000 00 Miscellaneous sources. 170,000 00 - - - v 20,731,336 08 20,730,395 81 Leaving unprovided for, of ihe demands for the present year, the sum of 6,000,9 11 14 There will also be receivable for public dues in the present year, or payable iu 1812, Treasury notes the issues of the present year, viz. Issued under the act of 1841, prior to the 4th of March, $073,681 32 Do. do. 1810, after the 3d of March, ,413,592 72 Do. do. l811,tobeissuedaftcr4thMarch, and included in tho estimate of ways and means, 5,000,000 00 Making an aggregate of debt and deficit, to be provided for m this and he ensuing year, of - - , . 12088-Ia 18 This estimate is founded on the assumption that all the moneys in the public depositories can be made at once available, and that any and all of the demands upon the Treasury can be satisfied, so long as money to a sufficient amount remains in any or all the depositories. But that is by no means the ease; white the pow$r lo tssue Treasu ry notct exists, there should bo at all times, for the convenience of the Treasury, a sum equal to $1,000,000 in the various dcposito .in Wbpn that nowcr is expended, the sum itn s....ri nnt less than . - 4,000,000 00 It is prorir to remark tint ihe entries on the books of the Krgisier cf the Trsa j rury do notalwsys show the troe dates j of the recti pis and expenditures. An ' item involted in the sbove state mtnt (ttble 0) will tertt tt illnttrste this fct' Th sum of $312,138 47 was, on the 2d and 31st of October. 1810, paid by lb Bank of ihe Uaited Sia'es on its last bond to William Armalrong, superintendent at Fort Gibson, by order of ths Sscrtlary of Wsr. Though this sum was in faot re ceived and ipenJed on thM diva. U did not fand us way in id the oflit of ihe Register until the 4'h of Marsh, 1811. on which day it appears on his iouks both as a receipt and an expenditure! Thus and-to this extent, within the last four ytitt, were the expenditures nuahed beyond the amount of the retrnue. They war made to abeorb the urrlu h the Treasury and die outstanding debis due to the Jailed Slates, so that the Ttcasury wa.onihc4thof Mrrh, 1841, exhauited of its means and subject to heaw and immediate liabilities. It was already burdened with a debt incurred in lime of pears, and without any adequate resources except the authority granted ny law to augment thai debt. As yet no provision has bean made to' reduce this debt or tn check its constant and rapid increase. Wa find il, therefore, as fsr as pat legifUtion and financial arrangement characterize it, a permanent and increasing national debt. Ths tem porary expedient by which it haa been sustained do not at all vary its essential charaeter. The attention of Congress it reipfct foily invited to the necessity ef early and effectual meaaures lo prevent itt further augmentation. The obvioua remedy it lo increase the reveuue as far aa my be without unreaaonably burdeuing com merce, and to tedaee ths expenditures within the limits of strict economy. Hut as il may not comport with the views of Congreat to into a revision and adjustment of the customs so long before the act of March 2, 1833, comes to have its final and permanent operation, the undersigned would respectfully re commrnd, as a temporary measure, the levy of a duty of 20 per sent, ad valorem on all articles which are now free) of duty, or which pay a less duty than 20 per cent, except gold and silver, and the articles specifically enumerated in ihe5th seciion or the act ol March 2d. 1833. . If this measure be adopted, it is esti mated that there will be received into the Treasury frpm customs, in the lisl quar ter of the present year, about S3. 300.000; in all of the year 1842 about 22,500, 000: and in the year 1843, after the final reduction under the act of March 2, 1833, about $30,800,000. The details of this estimate w ill be found in the accompany adaptation and detail, must be a work of time. It should be dons on calm rente tion and eareful deliberation, with s view to reconcile, as Lr as possible, the eon- flitu.ig opinion, and to promote all the vaitoua interests of ihe whole People of these UnnsJ Statee. And it may bs im porttnt, in that aljostment, not only to reciprocals on fair snd equal principle!, and in a liberal spirit, ihe concessions which may be aceorJed to our commerce by .foreign nations, but alto to do justice 1344,000 00 1'eaaetlo acetic ulate, or whea it becomes 6,337 00 j larger than the amount secretary to be 350,000 00 kept on iaal to meet ths carreat wants of the Tretaury, lhee aJauU(tt disap pear. .Tt.ia mods of lota then become to the Government what ibe sals in star let of new promissory notes, for the pur noes of raising ntoeey to take up old promissory Bote, ie to ea tdiideL. Il is ths issue of Treasury rmWs to taks p ether Treasury note year sfter year is eueerttion: sad. under those stream- stance, it is inconvenient and ripeasits. Bui ihs raiting of money by ths ittae of Treatary note t bjetwnbl, be cause it is dcrepu; by this means s 4,000,000 00 heavy dtbt may bs ra ted and fattened peraiaaemly epon tbs country, ibe aosoaat of new ioe being involved witn the payment of the old; while ths Peopls. sad ssa those who administer tbs fiaaacss, mty ant bs impressed with the important fact il at a national debt it treated or ia ths process of rreation. Therefore, in the opinion of ths soder sitrned. when s national drbt ssiet. and tnusi continue for a urns, it is better that it should be made s funded debt, accord ing lo ocr ancient financial usage. It is thee sheltered by no eer. an J ia ths sabject of no delusion. It is open, pal 1 pable, true; ths eye of ths eoeniry will be upon it, and will be able at a glance to mark its redaction or its increase; and it is believed that a loan for the requisite amouat, having eight years to run, oni redeemable at ihe will of the UO'Srowsnt, on six montha notice, sould be negotiated at a much lets 1 rats of interest than Treasury notes. Much expense would alto bs saved ia ditrensiae wiih'ihe machinery of ths issue and payment aad cancelling of Treasury note. It ia therefore rrtpectiutly recommend ed that a sum sufficient to pay the debt at i-reaenl existing, sad such as wilt ne- cetmily accrue in this and jhs ensuing year, bs raised on loan for ths urns snd on the condition above tuggrstsd. On K'eejnng and DUburting the Pullie Montyt. The undersigned would alto respectful ly invite the attention of Congret s to the present mJo of keeping and disbursing the publ.c moneys; and also to the tub jeclof the creation or imployment of a fiscal agent ti bs charged with the per; 572,718 40 r -'"" TtTtt'JecT wiihoet diarharginf every ptb'i liaLslity at iba evett tavarrd r-iit. .This weld , at ear ccsue all the dbrerot at : few of the Etecn Cities; and isval ths Trratvry ia the tik . ad etpeae of trantpatung the phbheund from the s , rieae potnta of eoUecuoa to the place 1 1 dubwreepeni.' . .,., An item of lets ieaportaare, bat euH worthy ol eoaaideratioa. is tenlieg on a permaoeat and economical arraagearn', r it the d it vet st peats of ths prevent syt ; tern, isclodisg the cost of tits beddings . for ths deposits of lis pablie. money, sad the salaries of ths officer and tarir clerks . who receive and ditbuiae U. NotoftUn of tide riak, iaeeaveaience, ot expea.s ased to bs incurred where a well-irgiut . ed bank is made the fiscal sgeat. , . Bet the preeeat eytteta t alto, ia tnt opinion of the anderstgned, iftjsrioss.t tus businets snd corrtney ol ths eeaauy. Instead of permitting tbs credit snd ths finances of ths geyei amsat ta lead their indirect but edietent aid ia avtiaiaiag tha t credit and regelating the curreary f the couauy, iibnngsiaio direet hneiility thote important iiilerest.' Ia ihe progress af ihs eytiest a eblficirai amwuatAf gold aad silver to supply lbs wants af ths Treat? ry mat bs withdrawn hem circulatien and locked up in vault, leaving no rep retentative to supply its place in ths ga nrral eirculatioa. tv . u A largs amount, alto, la ths hands of thosa who pay to or receive from 'the : Tretaury, is equally withdraw from go arl circulation, and mad to flow tbrosgh. -' thote channels alone which lead into and oat ol the pwblis coffers. . The aher ave- nuss ol commerce aad intercourse are thaa deprived f their proportion of tha prrciout metals. . ; . Within ih tlfiy-two years during which our eonslutiontl Government has exitttd, ws have bad, for tare perioda of teoty yearaeach.-a bank ebarUred by Congress at a depository of the pablio moneys and sssfivsal ageaU Wa hava bad, also, at two intervals, amounting to about nins yeara, ttats banks employed for like purpoet: and during the remain der of ths time, ths funds oi ihs Govern ment have bern kept and ihe finances ad ivt.:v . i ,. i .u. too estimated deficit. $16,088,215 18 ing paper, marked E. and encloaures. ..mwii ..ui, auuea , jlJf beiietej that. fier the heavy ex prndituret required for the public tervice ! in ths present yetr shall have been pro I vided for. the revenuet which will accrue from that, or a nearly proximate rate of n.. .u-.. j et- t,;. A,t in mil the attention of Congress to the more immediate demands of the public service, and the means by which those demands are to be supplied. , - The sums which will be required from the 1st of June to the 31st or August next are estimated as follows, viz: For the payment of Treasury notes which will fall due within that time, and the interest thereon, about - - $2'I0W2 S5 Balance for taking the 6th census, - '.. For the civil list, miscellaneous, and foreign intercourse, - 1,303 ,308 J7 Military service, - - . . - - - 4,591,098 00 a a -a t- !. t? .J;iM fAt lha Mtmnnt Al TrftRUff no f I fOlll III"! nn inn uem rapoiiuiw .... ... - . i aa k.iiL J i fill .iaa.i ahfiiti tOU.flUU Ol iramurT munsj wmciiwrcnic"., " a i. . J L..t r.. tvhirh thai warrinlJ WsSfcl r..nl Atiealiasntl tltirtlitr VI. BIS irtjrinu. u ua. iui " - i v'a v-j v Thia Stem, vary n ths 41 t lh Departmanf nn areount at atucd until auUaeient period. equal spirit any heavy eiactiona or pro- hibiiiont which foreign nations may think fit to impose opin the importation of our staple product on Some legM provitionttr alto required lo correct inequalities between th duties upon sugar snd molasses, and the draw btkt upon rrfined tugr and rum,' man ufactured or ditld!d from foreign mate rials. Tlse rtlttinn between the duty and the drawback was adjusted by the acts of January 21st, 1829. and Mav 29di, 1830, since which time the duties have been duniniahed, while ths drawback remain the tame. And a provision of law declar ing that all non ennmerated articlet which bear a aimilitude to any enumerated article chargeable with duty shall pay the aame rate of duty with the article which it most resembles, would tsve a large turn annu ally to the revenue, and prevent much annoyance and litigation between the importer and the oflieeri charged with the collection of the custom. Of the Public Debt. But it is not expected that any modifi cation of the revenue laws will be oper ative to supply the immediate warns of the Tretaury, and lo pay the debts which fall due in Ihe present and in thn ensuing year. A further loan is necessary to ef fect these object!, and ihe only questiont that can ansa are as to the mode of pro curing tbs loan, the character of the curities, and the assumed duration of the debt. Il would, in the opinion of the under minialsred partly by bank sod partly by individual officers and agents. The loa ns sustained by sUte bsnki, as depoti- hrmaneejtlhespnfot ehMeeris fills oTgrat iropor'ance7boihTPIOmfP'e,ie,'U!n ,ron 181 to-1810, lo the Government and to the cummuni ly. Such agent or depository ought to unite, in the highest practicable degree, the aafeiy of the public fundi, and con venience and economy in their adminia trttion; nJ it should, if possible, be ao selected or framed a to exert a salutary inQ'ience over the business and currency ,ol the country. The mode of keeping and disburtiag the publis money, provided by the act of July 4, 1940. will oe i.iumi, on compari son with that heretofore chiefly used by ihe Government, eminently deficient in II these essential requisites. The finan rial history of the United Stairs, eepeci ally for the hst twelve years, furnishes abundant proof that the public money it unsafe in the custody of individuals, and that their official bonds are no sufficient security for. its safekeeping and faithful application. Within the period above named many receiving officers connected with the Treasury Department have be come defaul'er to the Government. 1 he arirreffate loss from that cause within thai period, as shown by ihe b okt of ihe De partment, amount" to $2,620,500. but a email part of which will probably be re covered frnn their bond. It is true ihat, in any system which can be adopt ed, some pn"of the pubttemoney muat, in the nrocett of collection? paae through the hands of individuals, and be subject to their defalcations; but the act or July 4. 1840, extends and eoatinues the risk be vond the period of collection, and it sub- signed, be onwite to chtrgs upon thejjects lare matsts which, in the fluctua- duty, will be sufficient to defray the ex penaes of Government, and leave a sur plus to be annually applied to the gradual payment of the nauonal debt, leaving the proceed of the public lands to be disposed of aa Congress shall think fit.- f -The general principles on which the final revision of the tariff is to rest are perhaps simple and easy to be apprehen ded, but the work of revision itself, in its eommeree or the resource of the coon iiont of commerce, someiimesaccumuuie, try. in any form, the burden of paying at ho the same dangerous enttody. once, or at all hastily, the national debt. Before that is done, measures of restora tion and relief are required. The cur rency ol the country should be restored, and commerce and industry relieved from their present slate of embarrasment and depression, and a benign and liberal policy on the part of the General Government ahould call forth once mors the hardy industry and acti ve enterprise of our peo ple, and the vast resources of our country. If we assuate the period of from five to eight. years as that in whrch thia debt can be paid without inconvenience and embarrasment and the time appears lo be short enough we have one of the most essential elements on which to form our judgmeut as to the beat and most convenient mode ia which the loan can be kepi up, and the credit of the Govern ment tutiained. . In the inception and during lis pro gressive increase of a national debt, the issues of Treasury notes, though danger out and delusive, have yet their advant ages. They need not be issued fatttr than the actual wantt'ol the Treasury require; and the power to issue any given sum it, for all effective purposes of im mediate expenditure, a fund in the Tree ftiry available tohat amount. . But, whan the debt has acquired its maximum auJ agreeably lo a statement prepared by ths Secretary of ths Treasury in 1833, snd revised and republished in 1837, were $1,000,676. v la ilia laiur period, from 1833 to 1837, though n actual lots is i believed to have nreured, yet ihs Treas ury and fhe country ettffersd inconveni- . ei.ee end embarrassment from ilia fiscal ar- -rangemenis with thoae numerous and dis connected institutions. But, during ths -forty eare ihat the two banks of ths United States were 'the depositories of the public money and the fiscal agents ol the Government, no lots whatever wae sustained, nor any delay or any expense incurred in Iranamiiting or disbursing tha public montys, so f.r as the agency of i thote institutions extended. Then, as regtrdt ths wtnts ol the Treasury mere . ly, ihe safety of ths public funds, and -economy in their administration, experi- ence has demonstrated the superior utili- 4 ty of a bank constituted and adopted by Congreat as a fiscal agent. It has also proved to us that the active businets of the country, its currency, its credit, its industry, and its commerce, arc inti mately connected with and dependent -upon the financial arrangement of tha Goneral Government. If they bs wiaa and beneficent, they indirectly, but effi ciently, promote those great interests of the People; if constant and uniform in their action, they give to those interests confidence snd stability. i 5 Since the removal of the public depo sites from ihe Bank of ihs United Statee, ' in 1833, ths Government has bad noper msnent fiscal agent and no definite finan cial system. All bas been experiment.' transfer, and change. The business of ' V,it nnlv is ihe nublic money in the handtof individual more exposed tolott the country has yielded to ths unsteady from ordinary defalcation! than when de- impulse, and moved forward wiih wild posited in a well regulated bank; but the irregularity; at one urns etimaiaird to ex- Government i also liable to the risks of eestive action, al another sunk into leth- ' fire, robbery, and o-.her casualties, occur ring either in depsite or transmission, from which it is entirely protected when t well-regulated bank is the depository and the fiscal sgent. The pretent tyttem is also, in many respects, cumbrous and inconvenient. Its tendency is to centre ihe disbursements of ihe public money at some 6f the Eas tern cities, chiefly at New York. That beinir the treat commercial emporium of the United States, is the point at which funds are the most valuable, and, thers. fore, the moat sought; hence thote who are entitled to payments out of ihs. pubho Tieasury claim them- there. It is true there ie a general discretion in the bead, of ihe Deptrtment to" refute or grant the favor of such ptymentt according to ita convenience; but when the currency it de ranged, and the premium on exchanges it high, thit discretion iovolvee diacrimina tion is a large amount among ereditora equally ontided.' Itthen becomes a dange rous discretion, and on that ought not to exist. But, under the present tystem.it cinnot be avoided, save in' a few cases, any. And, in proviumg lor me waata of ths Treasury, it is surely important try look, alto, to the wants and tha welfare of the community, from tbs products of whose industry ths Treasury ie suppli ed." "..' ;' ,s.: ;---'v.,k: "" And as regards thote great interests, ws find tbs testimony of ptsi years is no lets dittiuet and strong in favor of a mo ney institution chartered by ths General , Government, end possessed of its confi- ' dvnre and credit. The period embrac v ing the last ten yeara of the existence al the late Bank of the United Sutea as tha fiseat agent i fresh in the memory ot u all. and is looked back to aa a period of great prosperity; and though other caus es did doubtless co operate to produea that favorable condition of tilings, yet one of the governing principles on which de pended the steady advance of ths eoun-' try, in eommeree, in industry, and in tub- l tantial wealth, was the existence ot a fiscal sgent established by the General Government, and charged with the equal-' Uaiinn of exchanges, and tha regulation' of the currency. " '