Register of Debates in Congress, Comprising the Leading Debates and Incidents of the Second Session of the Eighteenth Congress Page: 40
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40
APPENDIX—To Gales & Senton's Register.
.I8111 Congress,
£d Session.
$
Annual Treasury Report.
[Sen. and H. of II.
aggregate. Upon the whole, therefore, it is believed
that the revenue derived from imports will be increased
by the operation of the new tariff in a ratio nearly equal
to that in which it is estimated to have been increased
during the third quarter of the present year in the ports
above mentioned—or, about 7A per cent. This in-
crease, however, will produce less augmentation in the
actual receipts into the Treasury during the year 1825
than in subsequent years.
With these views of the subject, the receipts into the
Treasury, during the year 1825, are estimated as fol-
lows ;
'Customs 820,000,000
Lands 1,000,000
Bank dividends 350,000
Miscellaneous and incidental 150.000
23,950,000
flaking together 21,500,000
And the residue of the loan au-
thorized by the act of 26th of
May last $2,450,000
Forming an aggregate of
The expenditures of the year are estimated as follows :
Civil, diplomatic, and Miscella-
neous $1,685,026 76
Military service, including for-
tifications, ordnance, Indian
Department, Revolutionary
and Military pensions, arm-
ing the militia, and arrear-
ages prior tothe 1st of Janu-
ary, 1817 5,013,28$ 60
Naval service, including the
gradual increase of the navy 3,044,789 31
Public debt,including' a pay-
ment of #7,654,570 93 of
principal 11,962,063 97
Msfliing together 21,705,163 64
Which will leave in the Treasury, on the
1st of January, 1826, after satisfying all
the demands of the year 1825, a surplus
estimated at $2,244,836 36
On the first of January, 1826, a large amount of debt
incurred by the late war, viz: $19,500,000 of the six per
cent, stock of the year 1813, will be redeemable. As it
is not probable that the surplus means of the year 1826
will more than equal the nmpunt of the sinking fund for
that year, only g7,000,000 of that stock can be discharg-
ed out of the ordinary revenues of the year. On the 1st
of January, 1827, the 6 per cents, of 1814, another por-
tion of the war debt, amounting to $13,000,000, will be-
come redeemable; and, in that year, also, it is probable
that not more than $7,000,000 of the principal can be
discharged. There will then remain in those two
years $18,000,000, which cannot he paid out of the reve-
nue of those two years. In 1828, the amount of principal
redeemable will probably not exceed the means ot' the
Treasury. In the years 1829 and 1830,no part of the public
debt is redeemable,and,in 1831, less than $19,000. Policy
would seem to suggest with a view both to the conve-
nience of the government and the advantage of the com-
munity, that the excess of debt which cannot be dischar-
ged m 1826 and 1827, should be thrown in equal por-
tions upon those years ill which nothing is payable. For
the present, however, it may be sufficient to confine
such an arrangement to tiie excess of the year 1826.
From the state of the money market, and the high credit
of the Government, no doubt is entertained that the
§12,00",000 required to provide tor the excess of the
debt on the 1st of January, 1825, may be borrowed at
5 per cent, reimbursable in 1829, and 1830- Ami, if
•such an arrangement is approved, it is respectfully pro-
posed that authority be given by law for that purpose.
The same objectmight, perhaps, be accomplished by
an exchange of the stock redeemable on the 1st of Ja-
nuary, 1826, tor a 5 per cent, stock, redeemable in 1829
and 1830. But, it is believed that better terms may be
obtained by a loan. A proposal for a loan invites com-
petition from all the moneyed capitalists, including the
Bank of the United States: whereas an exchange of
stock confines the demand for the new stock to the
holders of the old stock, who constitute not only a small
portion of the capitalists, but a portion interested in
preventing the accomplishment of the exchange. More-
over, the experience of the government, during the last
two years, justifies the preference for a loan. In 1822,-a
law was passed authorizing an exchange of $26,000,000-
of the 7 per cents, and of the 6 per cents of the years
1812, '13, '14, and '15, for a 5 percent, stock, redeema-
ble in tile years 1830, '31, '32, and '33, and only $56,704 77
were exchanged: and, under the act of the last session,
authorizing an exchange of 15,000,000 dollars, of the 6
per cents of 1813, only $3,308,307 45 were exchanged.
Should the suggestion, herein offered, be adopted, for
disposing of the excess of debt redeemable in 1826 and
1827, the amount of public debt, redeemable in each
year, will be as follows:
In 1825, $7,654,570 93 of 6 per cents.
1826, 7,002,356 62 6 per cents.
1827, 7,001,437 63 6 per cents.
1828, 9,490,099 10 6 per cents.
1829, 6,000,000 00, proposed to be at 5 per cent.
1830, 6.000,000 00, the same.
1831, 6,018,901 59, the same.
1832, 6,018,900 72, of which $1,018,000 72, are
at 5 per cent, and 5,000,000
at 4$ per cent.
1833, 6,673;055 31, all at 4^ per cent, except
$18,901 59, at 5 per cent.
1834, 1,654,153 73, at 4-i per cent.
1835, 4,735,296 30, at 5 per cent.
This includes all the public d.-bt of the United States,
except 7,000,000 of 5 per cent, stock, subscribed to the
capital of the Ranlc of the U. States, and $13,296,231 45,
of 3 per cents; both of which are payable at the plea-
sure of the government. As, under the foregoing view
of the debt, all that will be redeemable after tiie year
1828, will be at an interest of 5 per cent., or less and as
the 5 per cent, slock, subscribed to the Bank, is reim-
burseable in such portions as the government may please,
any surplusses which may remain in 1829, and subse-
quent years, after discharging the debt redeemable, and
proposed to be made redeemable, in those years, may be
applied to the payment of that stock; or, if it be deemed
advisable to reserve any such surplusses for other ob-
jects, there is no doubt, that a sum sufficient to pay off'
that stock, may be obtained at 4J per cent., or even at a
lower rate of interest, reimburseable in 1834, in which
year, it will be perceived, only a small sum is redeema-
ble.
According to this exhibition of the subject, reckon-
ing the principal and interest of the public debt, until
its extinction, at about $111,000,000, independent of the
stock subscribed to the Bank, which may always be con-
sidered as offset by the government shares in the Bank,
it will be pcrceived that, by allowing 10,000,000 annual-
ly, with an additional million in the first year, the whole
of the public debt of the United States will be extin-
guished by the end of the year 1335
In speaking of the public debt, it may be proper to
notice the reduction that has been effected, during the
last eight years, both in the amount of principal and
rate of interest. On the 1st of January, 1817, the vviiole
debt of the United States was $123,491,965 16; of which
§115,257,805 48 were funded, bearing an average inte-
rest ot $o.56£ per cent, per annum. O.ithe 1st Janua-
ry next, die whole debt will be #86,045,003 18, bearing
*n average interest of j>5.23|; which shews a reduction
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Gales, Joseph, 1761-1841. Register of Debates in Congress, Comprising the Leading Debates and Incidents of the Second Session of the Eighteenth Congress, book, 1825; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc30752/m1/416/?rotate=90: accessed April 24, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.