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Ouri sre the pteniof fairnciishtfulpeace,
Unwarp'tl fryparty rage, :o n-. t nice wrtherr.
Thursday. November 19, 1807.
Vo 4S6V
V
IX.
ft.
V,
M Gazette - Iv- !
REPORT
of the, ; '
5 cr tary of the Treasury of the United States.
Communi ..ted to Congre s November 6 1807.
IN obedience to the directions of the act suppV mentary to the
2ct enututcd an " An act to establish the Treasury Department," the
Secretary of the Treasury respectfully submits the following rtcport
n-id Estimates, Vn-r.r.
, REVENUE and RECEIPTS.
The nett revenue arising from duties on merchandize and tonroa which
,i ,i,i.-incr the vear I 805, amounted to 8 14,135,138
And that which accrued duringjthe year IS06, amounted, as
wm aiyearby the statement jA,) to - -
The same revenue, after deducting that portion which arose
from me duty on salt, and from the addi-ional dunes cons-
tiiu ing the Mediterranean fundmounting during the year
1805, to L , " -
SI A. L
-And, during the year itsvo, io
iV o i t t;ieref )te prjjably leave in the Treasury, on the first
of Jauuary, ISC 9, a balance of near eleven millions of dollars, 10,830jOOO
-' 223,430,000
PUBLIC DEBT.
It appears by the statement (D,) that the pvmenta on account of the
principal of the putrfic debt, have, during the Vear ending the 30th
day of September, ' 1807, e&ceeded 4,600000 ui;ar i makincr the to-
tal of public dcbt reimbursed from the 1st of April, .1801, to the 1st
of October, 1807 bftat 25,330,000 dollars, exclusitreiV of more than if
harr
ins tt the treaty and convencV.
Louisiana convention
15,576,454
12.
530,532
14, 809,758
six millions, vvhi
fofmity with the
Britain, and of t
Of the twelve m'llions of dollars, which4 srcordkg lo the J
estimates, may oeaia on account ot the p ibU a- 'jt,f e.;
September, 1807,nd the 1st Januarv, 1809, Vvtt'lu xi
be on account of rtie principal. It must, hovevt, dS&er
the unascertained fesult ot the proposition m ide to thvvtibHp r-i hors
ior tne mouincaxup or ine aent, may artcct t.ie wrricuv .. ''.abte- 1;
.vi:
t.be curtailed Pi3r1ndDaIlv berftnss
II . - i . .
a great portiftjof rhe surplus of agri
cultural produce necessarily requires
a foreign iparkeu The reduced pfica
of the principal articles ex potted ijfera
wic-ysiiivcu oiaies win operate mora
fieavUy than any en rempjated tax
Aivd without enqnirit, t? UethrV eh
frnjar-cause may ;5t tirft.orf 'deef?
u,v, i .rit so u? 'j '-iatss to Amerk.S,
cite Jtisscs und privations -caused-by.
ti- jshatiki not be apravatt4ijy
fe jt : rtd' whot.U su-ictly rrces-4ry-'1
ad-iition to 'the debt
dob'T. :. an evi1 ; bn experience
it is ascertained, that the nett revenue which has accrued darmg the the r lg08 On'-:count of both nr'inrinal and int. -v X
' . -C iQor ptipH that rtt rhe. mrfHcmnnn . , V- - . 1 . ' i
thr j hist ouarcers 01 mc y-ai v.wv.v.-
- i i
havt:. nor shewn wt-h wpd
rtnrt'.rss ih revenue of the tiniofl i 1
cr ses in linu- of peace, with vVh t
j. frcih'tv the dc'af formerly cfnUradtcd
'eats,
interest, will not, e!
i dollars : And th(
rr r.ri if r.hanu-e'takes olace in the relations ot the
U. States with foreign nations, at fourteen millions ot. dollars.
The statement (B) exhibits in detail, the several sped s of mer
chandize and other sources, from which the revenue was collected
Anr'mcr the vear 1806.
w. fC. that the sales of the nublic lands J . n
it appears uy uic awitlUv.m ---- - 1 ; , i annua uy, ciurmg sc years, ana average
have during the year ending on me jutn ocpwnwcr, ieus cMtcucuj; scven followinjf at thc end ol which .riod thfc
284,000 aaes Some returns are not yet received : and the proceeds . , be extinai5hed, 1
of sales in the Mississippi ferritory being, alter deaucting the sur
vevins and other incidental expences, appropriated in the first place
ment ot a sum ot i,2ou,uuvJ aouars io mc biuic ui vcurgia,
On tp 1t Hav if hr.inrv 1 tL n.;n.J f 1- .tl l .'-! . J' i.w, i.i a frlv'vt
. . r .1 I f" w.v , .uwj, i.i miULliial uU I C lirL -'Vif". 11 f r " " .
ing quarters ot the year iuo; aau mat ",fc the proposed modication be not assented to by the pobUv: ci C .t '.u--2.v contidently be enterta ned,
exclusively ot the duty on sau, ana ui vuc MCuuc .uuu, . , mount to near liftdsevui millions and five hundred tr-.u- r3 H tce evl5S ot the war wi I
ot winch expire on tne isi uay u. jauua. u, -v yow..w ; j he subsequent aihuai payments thereon, on account 'bf ri VnrS l'M'y u ny tepa:rco anil
ifittt ur- it;uin i peace wr;j, with
out amy cffoit, afib-d ample resources
for icjjntuut'si-g wnateVei mr.y have;
beer, borrowed during., ihe-var.
; Ti.o credit of the ?U. Si.a?e5 is also
uit..pairtd est ht-rat honrt cr ab'
ar-d it is beliecd lhatr loans to a re.?.
sbnab'e amount nay be oh'.ain. ci o;
eligible terms. Measures h;:vc b'eeri
taken to.ascertain to what esieut 'his
j.may be affected abr au ; ahd in will
I r. . ,,rc: u ...... t.. l
to thf. uav
have not' been included, but are distinctly stated. 1 he actual pay
meat's by purchasers have; during the same period, exceeded 680,000
dollars ; and the receipts into the treasury from that source may, after
deducting charges and the five per cent, reserved for roads, oe esti
mated tor the ensuing year, at 500,000 dollars. .
The receipts arising from the permanent revenue of the U. States
rr.av, therefore, without including the duties on postage and other
incidental branches, be computed for the year 1808, at 14,500,000
And the payments into the Treasury during the same year, on
account of the salt and Mediterranean duties previously zc-
c.'ued, are estimated at one million three hundred thousand
4av
flaking in the whole an aggregate of fifteen million eight hun
dred thousand dollars, : . - . - g 1 5,800,00(3'
LAST QUARTER OF THE YtAR 1807.
The balance in the Treasury which, on the 30th day of September 1805,
amounted to 5,496.969 dollars 77 cents, did on the 30th day of Septem
ber lb07, anr-miit to - - - - 8,530,000
The receipts into the Treasury from the 1st of Qtober to the
3 1st day of December 1807, are estimated at i - - 4,000,000
t-
. 12,5 30,000
Tl e expences during the same period for all objects whatever the public :
debt except. u, and inctuding686,076 dollars! for thc extraordinary ex- j
penditures of the Navy department, of which the estimate has been
t a, smm-d, arc estimated at - - - S 1,700,000
The ordinary payments on account of the public debt, in
cluuuig tlie provision for the interest on the t.ouibiana and
Dutch debt, to the 1-tofJuiy, 1608, are estirhajed at - 1,700,000
A tunner sum of about 1,500,000 dollaiVshould also be
paid during this quarter, in order to complete the annual ap
proprutuun of eight millions of dollars.' If the whole of this
sum, vVhich is applicable to the purchase of the eight per
cent stock, cannot be expended this year, the unexpended
balance will form an additional expenditure for tne year 1 SO j,
charging however the whole to this quarter, . .- - 1, 500000
Malting an aggregate of 4,900,000 dollars,-and will leave
in the Treasury at the close of j the year a balance of about
stTcn million six hundred thousand dollars r 1 - 7,030,000
I ! 12,, 30,000
EXPENDITURES OF THE TEAR .1808.
The .permanent expernces calculated on a peace establishment are
astimajed at 1 t,600,0C0 dollars,; and consist of the following items, viz.
.1. For the civil department,' and all domestic expences of a
c:vil nature, including invalid pensions, the light house and
mint establishments, the expences. of surveying public lands
ani uc sea coaai, ihe fif h Instalment of the loan due to Mary
land 2c a sum of 100,000 dollars to meet such miscellaneous
appropriations, not included in the estimates, as may be made
by Congress - - . . 1,160,000
2. For expences incident to the intercourse; with fnrp'nm nn.
hons, mclu-Jing the permanent appropriation for Algiers,
o. For the military and Indian department, including traa
jiUr, houses, and the permanent appropriation for certain
4, For the naval establishment, - - . ' -
5. The innual appropriation of eight millions of dollars
lor the payment of the principal and interest of the public
eebt ; at which sum not more than 3,400,000 dollars will for
the year IbOS be applicable to the payment of interest,
4 i:
'..d-.
fei cf
rn
- 200,00U
1,280,000
1,020,000
8,000,000
g 1 1,600,000
tne permanent exriences mint Ki aa
03, a sum of about 800,000 dollars, necessary in addition
to the annual appropriation of eio-ht millim, nf Hollar, t , -
wiuiicie on tne
To
1st Januarv. lftOL r h rpimiinrmanf . r
uie eignt per cent stock, - - . t
'hJtud !?r payin4 Ci,c balance of American claims, assaumed
uy the rrench contention, - ...
800,000
200,000
Making altogether 13,600,000 dollars for the
lhat year,
expences of
The
And
Ut ol j
receipts of that year having been estimated at 15,300,000 1
tne projable ualance in the Treasury on the
Jiexc, at
,G30,000
altogether
23,430,000
l ! i r - ,
iCiusiveiy oi occasional purchast s, e . -1 4
whole of the debt, the nineteen ir.ifc.-"m-.i i
per cent, stock onlt excepted, will be reimbursed in sizs. .-en cr;
A general subscrption would reduce the eap'rta! to about bXv "e mil
lions ot dollars. Tie payments woulti amount to eightTjiiiion:.i ot r'Silm s
it years, and averace less th:'ui uiree inilv fh-rKn
r . . - - J-.
An annual unapppriateil surplus of at least three miiiions of dol'u
hencelorth be relied on with great confidence. The receiptioi b e
1803 have been estimated at .15,800,000 and the expenses at iC, (- 00.
dollars. Tbe permanent revenue has been computed at .14,500,000 tl irs
and the permanent tpeuces, predicated 'un anmial payment cf iv e!v3 '..mil
lions of dollars on account of the debt, have been stated at 1 l,60O.o;V iQl
lars ; and s this wo,Jd, if no modinca ion of the'debt s iotdd take uti be
renucea to itssthan 1,500,000, the an,ual surplus wotnd ihsnanw.:,
millions of dollars. Nor are the seven million una an ha! fof dollar?
will remain in the Jreasury at the end of the year, included in
culation.
What portipn of lat surplus my be-wanted for neresarv to
security uud defence what portion ; lould bt: applied to mtcVnat i
meniu, which, while fcreasiii diffu 'nr the sior.al weaiih, .-A
er i.n...3 oi amort, me feu.jects unicn do. not lull within he province lA
the Treasury Department, but it is not impossible, that after making ample
provision for both those objects considerable surnlusses, and which can no
j longer be applied to the redemption ol the debt, may still accumulate'in
the 1 ieauiy.
The previous accumulation of treasure in time of peace might, in a great
degree, defray the extraordinary expences of war, and diminish the ncces
sny of either loans or additional tnxc. It wouid provide, during periods
of prosperity, for those adverse events to which every nation is exposed, in
stead of increasing the burdens of the people at a time when tbuy are least
able to bear them, or of impairing by anticipations, the resources of ensu
ing generations ; and the public money of. the U. Slates not be.ng locked up
and withdrawn from the general circulation, but on the contr..rr deposited
in banks, and continuing to form a part of the circulating medium, the most
lormiciabie objection to that system, which has nevertheless been at times
j adopted with considerable success in other countries, is thereby altogether
removed, it is also believed that the renewal ot the charter ot the Bank ot
the U. Slates may, amongst other advantages, afford 'to government an op
portunity of obtaining interest on the public deposits, whenever they shall
exceed a certain amount".
Should the U. Stales, contrary totheir expectation and desire, b'j in vol v..
ed in war,' it is believed that the receipt of the year 1808 will not be mate
rially affecttd oy the event, inasmuch as they will principally arise from th
revenue accrued during the present year. The amount of outstanding-bonds
due by importers after deducting the debentures issued on accouni of re
exportations, exceeds at this lime, sixieen millions of dollars. The de
ductions to be made from these on account of subsequent re-exportations
would, in case of war, be less than usual : for exportation will then be
checked, as well as importations., and in proportion ab these will decrease,
a greater home demand will be created for the stock on hand and the ne
cessity of re-exporting be diminished.
It has already been stated, that :he specie in the Tre'asny at the end ot
this year, together with the surplus of the year 1808, will amount to near
eleven millions of dollars ; a sum probably adequate to meet the extraordi
nary expences ot the war lor that year. It w ill also be recollected, that in
the estimated expences of the year 1S0S, the reimbursement oi near five
munons una a nalt ot the principal oi the debt is included, -l.be only pro
vjsion theref'-re which may render any contingency nc c. ssary for the extra
ordinary service ot that year in order to cover any deficiency of revenue or
increase of expence beyond what has been estimated, will be an authority
to borrow a sum equal to that reimbursement.
That the revenue of the U- Slates will, in subsequent years, be conside-
rably impaired by a war, neither can or ought to be concealed. It is on the
'contrary, necessary, in order to be prepared for the crisis, to take an early
I view of the subiect. and to examine he resources whir.h shnnlrt he slf-nrl
J ' -w.- --"w.-w
for supply ing the deficiency, and defraying the extraordinary expences.
. There is no data from which thc extent of the defalcation can, ut this
moment, be calculated, or even estimated. It will be sufficient to stale,
1st. That it appears necessary to provide a revenue at least equal to. the an
nual expences on a peace establishment, the interest of the existing, d-.bt,
and the interest on the loans which may be raised. 2d. That tlioe expanses
together with the interest of the debt, will, ater the year 1808, amount to a
sura less than seven million of dollars, and therefore, that if the present
revenue of 14.560,000 dollars shall not be diminished more than one hail
j by the war, it will be still adequate to the'object, leaving only thc 'interest of
war loans to ne provided lor.
Whether taxes should be raised to a greater amount, or loans be alto
gether relied on for defraying the expences of the war, is the nuxt s.ibjtct
oi consiueration. ,
Taxes are paid by the great mass of the citizens, and immediately affect
almost every individual of the community. Loans are supplied by capitals
previously accumulated by a few mdividuds. In a country! whercihe re
sources of individuals are not generally and materially atlectl by the war,
it is practicable and wise to raise by :ascs the.greater pari at least of the
annual supplies. The credit of the nation may also, from various circum
stances, be at times so far impaired as to leave no resource but taxation. In
both respects, the situation of the United States is totally -dissimilar.
A maritime war will, in the J. States, generally and deeply affect, whilst Lj
it continues, th resources of individuals, as not only commercial prallts sviil
d.
be sufficient here to suggest, thai the
! -sverai oaiiKs -ui ine '.aes nr.a.-j
j find it convenient after tbftsni.u'usg
j year, and as the di mini.-bed om-
.ucrce.of the country .may require
'.ess t ap.iai, 10 ioan i govemmtma
Considerable poilion o ihtir capital,
t w computed ut ubout forty mi lions
if doll'irs.
It 'might be premature to erter in
oa particular detail of the seve.2
brrnches of revenue whi'eU fv
selected, m oi rier to provide '.e. the)
interest of rar loans, and to cover de
ficiencies in case the existing r- venue?
should fMl below seven millions ol dol
tars. A general enumeration seema
at present sufficient.
l.Notonly he duty on salt and th
Mediterranean duties may be imme
diately revived, but the duties on im
portation generally may, in case o?
war, be considerably increased, per
hapsdeubied, with less inconvenience
than would arise from ny other mode)
of taxation. Without resorting to tha
example ofothei nations, experience
has proved that ibis source of reve
nue is, in theU. States, the most pro
ductive; the easiest to collect, &. the
least burthens me to the great mass
of thepeoplcv In time of war thedan
ger of smuggling is diminished, the
scarcity cf loreign articles prevents
the duty ever falling on the importer;
the consumers are precisely thoses
members of the community who are
best able ii pay the duty : and thta
(.increase of Domestic Manufacturest
whkhlnay be indirectly effected, 19
j in itself a desirable objecr. 4
J 2. Indirect taxs, however eligrblej
i will doubtless be cheerfully Dnid as
I far Tattrs, if necessary. SeveraJ",
modification - of the system formerly
adopted, might however be introdu
ced, both in order to diminish some
of the inconveniences whi.. h were ex
perienced, and particulaily to ensuro
the coll Jci ion of the duties.
3, Dirtct taxes are liable to a par
ticular objection arising from the un
avoidable inequality produced by thes
general rule of the constitution. .
Whatever difference may. exist be,
tvveen thevri.l ;tive werlth. and con
sequent ability of paying o; the seve -ral
'states; still the ux must neces-'
sarily be raised in propoition to their
relative .population. Shou'd it, how
ever, become necessary to esort to
that resouise, it is believed thaj lhe
tax raised upon this species of pro.
perty in. each stale, whir.h,- by tlie
state law's, h liable to taxation, as had
been contemplated by Congress,
would be preferable lo a general as
sessment laid uniformly on the samev
species property in all the states,
as was ultimately adopted.
All which is leypecfftlN s bmitted,
ALBERT GALLATIN
See. cf Treasur,.-
Treasury Department,
Kqv, 5, 1807
Jt
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