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nn 0 uO o ! HOILLY SlPiEN&, Miss. FMIPAF, JILJILY 2, 141. No. W zJ L en- f . Li) !?J I - - - S ?ol. II. L " 3 hi er- , i i at! i'i i i I tii i h . V ire if ii idi ca jil !t5 i it i i If. X HIE SOUTHER WW'ER : .ore ( ten I.'oc or less,) for the fir.t time, and llftj ?. f... .. contllllllKlCe. Adverlisemeiits not marked with the number Wtioi.s on iheiti, be continueii unm oruereu out .har"'u at "ve rates. 4nouncing candidates for office will be For State 10 For Cuuntj, $5; to be paid down or assum f' responsible name in town. -letters addressed to the nublisher of the Soctheiis b, on business with the office, must be post paid, to attention. -WarlT advertisements, inserted at the usual rates. ' . - - .j Ml 1 I I J...1I. Persenai .iiercanons win oe cnargeu uouoic -,nij f,!i required in advance. r .. ' . I... ...it .1 II Wfl1?W ,1 fl.'io join as delivered. OKTOF THE SECRETARY OP' 5 TREASURY ON THE FINANCES. Treasury Department, June 2, 1841. i obedience to the directions of the act duress of the 10 of May, 1S00, sup- fntarv to the '-act to establish the -ij v Department," the Secretary ol the :ury respecltuny submits the lollowing ... . - Of the 'public revenue and expenditures. ' J , ";,e ret cij'ts and expenditures of the year :! were as lollows : -available balance in the "rrasury.ori the 1st of Jan- L:iv, 1810, (exclusive of amount deposited with e Slrtes, trust-funds, and densities, and the a iiunt tine from banks :,ich lailerl in 1S37,) was, iapj ears by the books of . llejsicr of the Trea ty - -- - . - $3,GG3,0S4 60 .(teij ts into the I reasu- during the year IS 10, inusi m - $13,499,502 17 !s . - . 1,292283 57 ii of the :.r.k of the .Mates 1,771,513, SO c iLiiieous ,J ir:ciden- .i SwlW'CfS v. bicli jut d .ote - 233.25S 23 71S.G29 55 5 5S9.517 51 - 25,17,736 SI 2S,S50,S20 41 fXjOiiJl- :ejia the ::iie year if.f,:!ieiv- lit,'orf ign .:n course -J uiisctl- :2cous - 5,192,030 98 tery de- irtmer.t 10,SGG,236 45 ai do. G ,03 1, OSS :;':cdebf, - 11,982 77 i outstarid- "gwarrants , t , sucd lirior " " 'alstJanu- -y, 1S11 1,416,331 23 --;urv notes tdeemed,in :'udinc ic- i-fct". - 4,045,S02 05 :- 27,S63,474 41 "'ing a balance intheTrea :y cn 1st of January, ,-H,.f - :J receipts from the 1st of ttuary to the 4th March, lwere, say --customs,l 974,836 46 44 Lands, 3S6,14S 50 Bond of tank of r-States - - 17,913 00 a miscellan ies and inci- i-tal sources 31,349 63 jbanls which jedin 1S37, 18,000 00 j' Treasury r13 Fer ac tof33stof h,lS40, 1,110,611 OS Treasury i'es under the ?,of loth of j ary,lS41,673,6Sl 32 $9S7,315 02 Treasury notes redeemed, including inr teresf - - 647,590 06 $4.G27,1 66 64 8572,718 4G Leaving a balance in the Trea t urv, on the 4th "of March, 1811, of - ..... The balances of apppropriations, outstanding on the 4th of March, 1841, were : (see state ment a.) Civu. foreign intercourse, and miscellaneous - - - -Military - - - - - - . - Naval - - . . . - Public debt - - . . . . Treasury notes issued prior to - the 1st of January, lv41,and outstanding on the 4th of ' March, 1811 - . - . . 3,873,220 Treasury notes issued under the act of 1640,. from 1st of January to the 4th of March, . 18-11, wliich may, and most ot vvh.ch probably will, be presented in payment of pub lie dues during 1841 - -Interest estimated at about - $3,237,234 28 15,991,595 15 G,G10,2GS.G9 0,387 30 00 1,1 10,Gll OS 300,000 00 Making in the aggregate 823,429,010 50 Of this there will be req ired iot tne services of tiie- cur rent year - - . . . 824.2ioonn nn Additional - appropriations re quired by the War Depart ment forthe year year 1841, viz . Fortifications &; works of de fence - - For armaments of fortifica tions and or dinance stores For payment of arrearages & current expes &e,and taking care of public property on roads, harbors, rivers, &c. . For arrearages lor preventing and suppress ing Indian hosiiiities, 81,435,500 00 220,000 00 40,199 12 825,G37 8G - 2,521,330 OS Mak inT o 82G,73 1,330 98 6310,803 12 The actual & estimated means, under the existing laws, to meet these demands are; Viz : The available balance in the Treasury on the 4th of March, 1011, ( see state ment B.) - Treasury notes authorized un der the act of 1830, issu ed after the 3d of Maich, 1841, - - Treasury notes authorized by the act of '41, -to be issued after the 4th of March, '41, 5,000,000 00 Receipts from customs es i- mated at - Receipts from public lands iieceipis irom miscellaneous sources - - 170,090 00 413,592 72 12,000,000 00 2,500,000 00 long as money, toa sufficient amount,remainsinany or all the depositories. But that is by no means, the case. While the pouter to issus Trea sury notes exist s,lhere should be, at all times, for the con venience of the Treasury, a sum equal to 81,000,000, in the various depositories, sub ject to draft; when that pow er is expended, the sum should be increased to not less than 8 1,000,000 00 Which sum added to the above makes the estimated deficit 81G,0S8,215 18 But the undersigned feels it his duty to call the attention of Conirrcss' to the more immedi ate 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 3U; of August n.jxt are esti mated as follows, viz : For the payment of Treasury notes which will fall due with in that time, and the interest thereon, about .... 82,750,900 00 IJalance tor taking thebth census For the civiljist, miscellaneous and foreign intercourse - - Military service - - - - -Naval do. Public debt ...... Expenses of the extra session of Congress - - 294,000 00 1,309,303 3 7 4,591,093 00 1,814,000 00 0,387 00 Making about - - - - The ways and means in the power of -the Treasury, and which will, probably accrue under existing laws, are as follows : Funds in the Treasury, as per statement (C.) - - $341,301 10 2. TresV notes authorized by the act of the 15th of Feb ruary, 1841 1,505.943 91 3. Estimated re- from the cus , toms - - Estimated re ceipts from the lands - Miscellaneous sources -Making - 350,000 00 811,151,093 37 Amounting to 820,730,395 81 'g with the balance in i Treasury. January 1 . - . . . - - S5,199,SS5 10 s ; JJpenditures for the period Tvere : ijffct, for-inter- and " ' ydepart- :fl - - 2,273,097 11 ' 75919 CO j u-Cbt . . 3,612 70 Leaving unprovided for. of the demands for the present year, the sum of - - - - - There will also bo receivable for public daes, in the present year, or payable in 1842, Treasury notes, the issues . of the present year, viz : Issued under the act of 1841, prior to the 4th of March - - 413,592 72 Issued under the act of 1841, to be issued af tpr the 4th of 4,212,510 07 Marched in- eluded in Iho . estimate of ways & means 5,000,000 00 G,000,941 14 6,097,2G4 04 $943,317 14 Making an aggregate of debt and deficit to be provided" for in this and the ensumg year of - - - - - - This estimate is founded on the -assumption, that all" the moneys in the'public deposi tories can be at once made a vailable, and that any and all of the demands upon the Treasury can be satisfied, so S12,0S815 18 ,000,000 CO 700,000 00 - 50,000 00 And leaving a deficit of To which add the sum recom mended to be kept in the Treasury, to meet any emer gencies of the public service, viz : - - - .. . - . Making an aggregate of - 5,251,383 40 81,C00,000 00 89,25 1,3SS 20 Note This item and the item of expendi. ure ror the payment of Treasury notes from 1st of January to 4th of March, 1841, include about 800,000 of 1 reasury notes, which were re ceived at the department on account of customs, during that period, but for which the warrants were not issued until a subsequent period. In another part ot this paper, the views of the department, as to the mode of providing for the above dehcit, together with the residue of the existing public debt, will be presented. trom the year 181G to 1837, a period of twenty-one years, the revenue constantly ex ceeded the expenditures. The average annual surplus during that time was 811,40i,22G 87, (see tables one and two;) making an aggregate excess of 8240,743,704 27. Of this, there was applied to the extinction of the national debt, 8208,792,127 44; and there was, under the pro visions of the act of 23d of June, 1S3G, deposted with the States 828,101,644 91 ; and there re mained on the 1st of January, 1817, in the Tre asury ot the United btates, including the fourth instalment due to the States, a surplus of 817,109,473 2G here weic, also, outstanding debts due and I'alSingdue. to the Treasury, arising from other sources than those of the ordinary revenue, and which were paid between the 1st of January, 1137, and 4th of March, 1841. to the amount of (see statement D.) There were, also, issued within that period, and outstanding on the 4th of March, 1S31, Treasury notes to the a mount of ----- - 9,121,747 00 5,G48,512 40 Making the agjrrcate available means which were in .the Treasury on the 1st of Janu ary, 1837, and which came into it prior to the 4th of March, 1841, over and above the current revenues - -From which deduct the amount (less the trust-funds) remain ing in the Treasury on the 4th of March, 1841 - - - And there appears an excess of expenditure over the current revenue of - - 31,882,732 66 572,713 4G 831,410,013 20 It is proper. to remark that the entries on the books of the Register of the Treasury, do not al ways show the true dates of the receipts and ex penditures. An item involved in the above statement (table D.) will serve to illustrate this fact. The sum of 8512, 130 47 was, on the 2d and 31st of October, 1S40, paid by the bank of the United States on its last bond, to William Armstrong, superintendent at Fort Gibson, by order of the Secretary of War. Though this sum was, in fact, received and expended on those days, it did not find its way into tho office of the Register until the 4th of March, 1841, on which day it appears on his books both as a re ceipt and an expenditure. Thus, and to this extent, within the last four years, were the expenditures pushed beyond th? amount of the revenue. They were made to ab-! sorb the surplus in the Treasury and outstand ing debt due to the United Stales ; so that the Treasury was, on the 4:h of March, 1811, ex hausted of its means, and subject to heavy and immediate liabilities. It was already burdened with a debt incurred in time of peace, and with out any adequate resources except the authority granted by law to augment that debt. As yet no provision has been made to reduce this debt, or to check its constant and rapid in crease. We find it, therefore, as far as past le. gislation and financial arrangements character ize it, a permanent and increasing national debt. The temporary expedients by which it has been sustained do not at all vary its essential charac ter, The attention of Congress is respectfully in vited to the necessity of early and effectual mea sures to prevent its further augmentation. The obvious remedy is to increase the revenue as far as may be, without unreasonably burdening commerce, and to reduce the expenditures with in the limits of strict economy. But, as it may not comport with the views of Congress to go into a revision and adjustment of the customs so long before the act ofJUarch 2, 1833, comes to have its final and permanent o perations, the undersigned would respectfully re commend, as a temporay measure, the levy of a duty of twenty per cent, ad valorem, on all ar ticles which are now free of duty, or, which nay a less duty than twenty per cent, except gold 1 ' I r ti anu suver, anu me articles specincaily enumer ated in the 5th section of the act ot March 2, 1833. If this measure be adopted, it is estimated that there will be received into the Treasury from customs, in the last quarter of the pre" sent year, about $5,300,000. 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 $20,S00,000. The details of this estimate will be found in tha nnrnm panyiris. caper, marked "E and en closures." It is believed that after the heavy expendi ture, required for the public service, in the present year, shall have been provided for, that the revenues which will accrue from that, or a nearly proximate rate of duty, will be suflicient to defray the expenses of Gov ernment, and leave a surplus to be annually applied to the gradual payment of the na tional bebt, leaving the proceeds of the pub lic lands to be disposed of as Congress shall think fit. The general drinciples on which the final revision of the tariffis to rest, are, perhaps, simple and easy to be apprehended; but the woi k ol revision itself, m its adaptation and detail, must be a work of time. It shou'd be done on calm reflection and careful deliber ation, with a view to reconcile, as far as pos sible, the conflicting opinions and to pro mote all the various interests ot the whole people of these United States. And it may be imnorlant, in that adjustment, not only to reciprocate on fair and equal principles, and in a liberal spirit, the concessions which may be accorded to our commerce by foreign nations, but, also, to justice to our own citi zens by meeting in a like equal spirit, any heavy exactions or prohibitions which for eign nations may think fit to impose upon the importation of of our staple productions borne legal provisions are, aiso, requirca to correct inequalities oetwesn tne auues oc suar and molasses, and the drawbacks upon refined suar knd rum. manufactured ordis- tilled from foreign materials. The relations between the dutv and the drawback was ad justed by the acts of January 2lst, 1S29, and it r rtfk.U lOOrt. nrl,;nU 4imn iha fin. iiaV lOtlU j SUiG VIllUi nmw uu- ties'have been diminished while the draw backs remain the same. And a provision of law declaring, that all non-enumerated arti cles which bear a similitude to any enumerat ed article chargeable with duty, shall pay the same oate of duty with the article wmcn it most resembles, would save a large sum annually to the revenue, and prevent much annoyance and litigation between the im porter and the omcers cnargea vmn tne col lection of the customs. Of Jhe Public Debt. 1 But it is not expected that any modifica tion of the revenue laws will be operative to supply the immediate wants of the Trea sury, ancl pay the debts which fall due in the present and in the ensuing year. A further loan is necessary to effect those objects, and the only questions that can arise, are, as to the mode of procuring the loan, the charac ter of the securities, and the assumed dura tion of the debt. It would, in the opinion of the undersign ed, be unwise to c'urge upon the commerce or the resources of the country, in any form, the burden of paying at once,or at ali hasti ly, the national debt. Before that is done, measures of restoration -and relief are requir ed. The currency of the country should be restored, and commerce and industty re ceived from their present state of embarrass ments and depression, and a denign and lib eral policy on the part of the General Gov ernment should call forth once more the hardy iudustry and active enterprise of our people and the vast resources of our coun try. If we assume the period of from five to eight years as that in which this debt can be paid without inconvenience and embarrass ment, and the time appears to be short e nough, we have one of the most essential elements on which to form our judgement as to the best and most convenient mode in which tne loau can be kept up, and the cred it of the Government sustained. ' In the inception and during the - progres sive increase of a national debt, the issues of Treasury notes, though dangerous and delu sive, have yet their advantages; They need not be issued faster than the actual wants of the Treasury require, and a power to issue any given sum, is for all effective purposes of immediate expenditure, a fund in the Trea sury available to that amount. But, when the debt has acquired its maximum and ceases to accumulate, or when it becomes larger than the amount necessary to be kept on hand to meet the current wants of the Treasury, those advantages disappear. This node of loan then becomes to the Govern ment what the sae in market of new prom issory notes for the purpose of raising money to take up old promissory notes is to an in dividual. It is the issue of Treasury notes to take up other Treasury notes year after year in succession, and, under those circumstanc es, it is inconvenient and expensive. But the raising of money by the issue of Treasury notes is objectionable because it i:f deceptive. By this means a heavy debt may be raised and fastened permanently upon the country, the ai:ount of new issues being in volved with the payment of the old, while the. people, and even those who admister the finances, may not be impressed with the im portant fact," that a national debt is created or in the process of creation. Therefore, in the opinion of the under signed, when a national debt does exist, and must continue for a lime, it is better that it should bo made a funded debt, according to our ancient gnanciaF usage, It "is then shel tered by no cover, and is the subject of no delusion. It is open, palpable, true. The eyes of the country will be upon it, and will be able to mark at a glance its reduction or iis increase. And, it is believed that a loan for the requisite amount, having eight years to run, but redeemable at the will of the Gov ernment on six months notice, could be ne gotiated at a much less rate of interest than Treasury notes. Much expense would, also, be saved in -dispensing with the machinery of the issue and payment and cancelling of Treasury notes. ' It is, therefore, respectfully recommended that asum sufficient to pay the debt at pre. sent existing, and such as will necessarily ac crue in this and the ensuing year, be raised on loan, for the time, and on the condition above suggested. On Keeping 4' Disbursing the Public Moneys The undersigned would, also, respectfully invite the attention of Congress, to the pre sent mode of keeping and disbursmg the pub lic moneys, and also to the subject of the creation or employment of a fiscal agent, to be charged with the the performance of these and other du'ies. The subject is one one of great importance, both to the Government and to the commu nity. Such tgent or depository ought to u nite, in the highest practicable degree, the safety of the public funds, and convenience and economy in their administration ; and it should, if possible, be so selected or framed, as to exert a salutary influence over the bu siness and currency of the country. The mode of keeping and disbursing the public money, provided by the act of July 4. 1S40, will be found on comparison with that heretofore chiefly used by the Government, eminently deficient in all these essential re quisites. The financial history of the United Stales, especially for the last twelve years, furnishes abundant proof that the public mo ney is unsafe in the custody of individual?, and that their official bonds are not sufficient security for its safe keeping and faithful' ap plication. Within the period above named, many receiving officers, connected with the Treasury Department, have become default ers to the Government. The aggregate loss from that cause, within that period, as shown bv the books of the depaitment, amounts to $2,620,500 00, but a small part of which will, probably,be recovered from theii bonds. It is true, that in anv system that caa be a dopted,.some part of the public money must, in the process of collection, pass through the hands of individuals, and be subject to their defalcations, but the act of July 4th, 1840, extends and contiuues the risk beyond the period of collection, and it subjects large"