Notes to statement D. d. (a) Interest extinguished on 2,379,269 34 at three per cent. Deduct, interest increased, three per cent. on 565,318 41 converted six per cent. stock, outstanding, Diminution of interest on three per cent. stock (6) Six per cent. and deferred stocks, 1st January, 1801. Nominal amount exclusive of the sinking fund, The previous reimbursements, by the accounts of receipts and expenditures, amounted to, Deduct for an error, as stated in the accounts for the year 1803, But of that reimbursement, there has been paid on stock transferred to the sinking fund, a sum of Leaving for the reimbursement on the above stated nominal amount, And making for the unredeemed amount, as per report of April, 1808, Unredeemed six per cent. and deferred, on 1st April, 1801, are as follow: Annual reimbursements from 1st January, 1801, to 1st January, Reimbursement of the year 1811, estimated at II. Paid in for lands and purchased, viz: For lands, unredeemed amount, as stated in the several estimates marked D, Deduct, on account of the nominal amount, instead of the unredeemed amount, having been inserted in those estimates, prior to the 30th September, 1805, Purchased in 1806, 1II. Exchanged stock, reimbursed in full, 41,895,310 OT 37,947,458 20 59,617 66 37,887,840 54 Unredeemed amount on 1st January, 1811, Deduct reimbursement of 1811, estimated as per above, at (c) Three per cent. stock on 1st January, 1801, (including Higgin's stock, 17, 18, stated subsequently in the accounts) per report of April, 1808, Ditto, issued subsequently thereto, Outstanding on 1st January, 1812, From the above amount of reimbursements, Deduct, outstanding converted stock, on 1st January, 1812, Makes the reimbursement on three per cent. stock (including converted) from 1st April, 1801, to 1st January, 1812, viz. Difference between three per cent. surrendered and converted stock, issued under the act of February 11, 1807, Three per cent. stock paid in for lands, Converted, do. Do. do. do. to be reimbursed on the 31st December, 1811, Financial Views. A friend, who is quite out of humor with Mr. Gallatin and his letter to the chairman of the com mittee of ways and means, has urged some general propositions on finance with a view to their publication in the REGISTER; accompanied by such remarks and observations as we might believe cal culated to elucidate his ideas-which we are the more inclined to do from their novelty, in one instance, and apparent plausibility in another. HE PROPOSES LOANS.-There shall be two kinds of loans; direct loans, and loans from individuals, or corpo rate bodies as usual. Add one seventh Interest Add one seventh THIRD YEAR $530,000 500,000 1,030,000 61,800 1,091,800 500,000 1,591,800 95,508 1,687,308 500,000 2,187,308 130,838 FOURTH YEAR 2,318,1416 500,000 2,818,146 169,748 The direct loans are to supply the place of direct taxes, and supercede the necessity of some of the internal revenues proposed by the secretary of the treasury. Suppose these loans to amount to 3,500,000 dollars per annum, to be raised from the people as their county levies are raised. Let each state be directed by the general government to raise her proportion of the said amount according to her representation, by directing her several levy courts, or county commissioners, to assess such an additional per centum on their usual taxes as will supply the quota to be furnished by the county ; which supply shall be according to population, FIFTH YEAR rating the slaves agreeably to the principle laid And so on until the expiration of ten years, when down in the constitution of the United States. The the amount of the fund will be $7,134,675. money, when collected, to pass from the county There may be, and, perhaps, must be, some ob treasuries to the state treasury, and from thence to structions to the perfect operation of this plan; the treasury of the United States; the proper evi- but it is presumed the purchase of stocks on which dences of the contribution being given, in the first the interest is payable semi annually would fully instance, by the state treasurers to the county trea-make up for any time lost, and give a result at least surers, and by the treasurer of the United States as favorable. 3,087,894 to the state treasurers, upon drawing the money. Here, with this system it is proposed, in part, to On the supplies thus raised no interest shall be stop. The war has lasted ten years; peace is repaid at present if at all]; but on the return of established, and business has assumed its usual peace, or at such period as may be agreed upon, channels. We have now a large surplus revenue ways and means shall be provided to return to the [to be shewn hereafter] and can appropriate 8 or 10 states every succeeding year, for the reimbursement millions to the payment of the principal of the pubof the counties, a sum equal (at least) to one half of lic debt, after discharging the interest. Let the the amount levied in any one year, with the whole sinking fund attached to the direct loans operate 10 or some proportionate part of the interest, [if years longer, by the mere accumulation of interest. thought most expedient] until the principal [with and it will amount to $12,766,497—of this sum the simple interest therefor] shall be finally andf ully principal invested is only 5 millions in the whole, paid. On the receipt of their instalments the states and there remains a balance of $7,766,497 applicashall direct the counties to make an ABATEMENT of ble to the payment of the interest, and a clear PROtheir usual levy, proportionate to the sum that reverts FIT of $3,266,497 by the operation.‡ to them, and so continue to do until the whole war But suppose that on these direct loans no interest loan is exhausted for county purposes-or, in other should be paid during the period of war and for five words, in fact, returned into the pockets of the years after its conclusion, when a sum shall be anpeople.* nually refunded equal to one year's contribution and The organization of this system is exceedingly the current year's interest on the whole sum borsimple; and will be attended with no expence rowed? Would any think the imposition grievous? whatsoever except the usual per centum allowed for Would not such a sacrifice (if a sacrifice it can be collection. called) be among the least that any man could ex To pay the interest upon the money thus obtain-pect to make? WHO WOULD FEEL OR KNOW IT? ed, or cast out a sheet anchor for the extinguishment No person could be sensible of it unless he took up of the debt, suppose that one seventh part of the pen and paper to calculate it; when he would rather contribution shall be annually invested by the pur- estimate a profit that might have resulted than a chase of evidences of the public debt, bearing interest payable semi-annually or annually, and so form a SINKING FUND. If actively employed it will produce the following results : * If at the time these instalments are to be repaid, any of the counties shali feel themselves in a condition to appropriate the money to public works, what elegant roads and bridges might be made-what useful public buildings might be erected! If the theory of this sinking fund is not ap proved of, let it be thrown aside altogether we can do very well without it, and would have $500,000 a year more for de ence than has been calculated, and the final reimbursement will only be obstructed for six months. But the fund might be useful as a market for stocks, and strengthen the public credit by its demands. Balance after payment of principal $7,766,497 Fifteen years interest (equated time) on five millions PROFIT 4,500,000 $3,266,497 loss actually sustained. Yet this non-receipt of the people about as much as their whole export of interest, as above proposed, would stand in lieu of provisions were sold for ! In many parts of the intetaxes to the amount of Two MILLIONS per annum rior no other than domestic spirits are seen-and in during the war, (supposed-for ten years) which no part of it are foreign productions in general use. taxes, every man would, very often, feel und know. From this it is presumed that the quantity of home'Loans from individuals to the amount of ten mil-made liquors distilled will amount to at least thirty tions per annum it is presumed inay be easily ob-millions of gallons a year; perhaps to 40 millions. tained. This is Mr. Gallatin's calculation; and of Let the duty on foreign spirits be trebled—those on the will or capacity of the people to furnish such a the sea-board who choose to drink them will pay for supply there can be no question. There is a vast them. Their consumption will be diminished; but monied capital in the United States which such re this diminution will give a proportionate vent for quisitions would bring into action. The sums the domestic product; excite the distillers to imraised, it is to be remeinbered, are not lost to the prove the excellency of their article, and afford a people, but immediately revert to them through a great home market for our extra quantities of grain, thousand different avenues. Indeed, it is the opi- &c. Whiskey, which but a few years ago was nion of many, and an opinion that appears pretty accounted as fit only for the lowest dregs of the well founded, that money would thereby become people, is now to be found on the side-boards of the much more plenty (to use a common saying) than most opulent amongst us ; and a duty upon it, (by it is at this time. Open war would give a free cir-making it appear more respectable!) would rather culation to that which in our mongrel peace, every increase than diminish its consumption. man is afraid, or has not the spirit, to part with. It is concluded that at least 30 millions of gallons. Thus is provided a resource say of thirteen mil- of whiskey, rum, gin or brandy-say whiskey, is lions a year but the secretary, for all his purposes, distilled every year in the United States-the ave wants about twenty millions-there are yet seven rage price of it is 35 cents in the interior-45 in the millions deficient. sea ports-say 40 cents per gallon. Let a duty be It is admitted that the duties on goods imported, laid according to the proof to produce an equation if doubled, will produce five millions. This is cer- of 25 cents per gallon; and its average price will tainly the lowest possible estimate that can be be 65 cents. This duty shall be permanent. The formed.§ price of the article will yet be low enough in all -The tax upon salt is allowed to be a good tax, in-conscience. The retailers will raise it from three asmuch as it will give a great spur to an important cents a gill to four cents; it will only cost a man domestic manufacture, and can be collected with one cent more to get tipsey then than it does now, out any or but little additional expence. This will and his heart being warm he will pay it with plea raise, says Mr. Gallatin, $400,000. sure The only inconvenience that ought to at Granted that wHISKEY is, of all possible sub-tend this tax is the payment of it, in the first injects that can present itself, the fairest for taxation. stance, by the distillers-but a plan may be devised Had Great Britain such a resource she would levy whereby, on giving the proper securities, they twenty millions a year upon it in addition to all her may be excused until a period has expired presumpresent excises and duties, and the tax would be ed sufficient for them to make sales, as is the casepaid. Notwithstanding our immense supply of with goods imported by our merchants. domestic distilled liquors, we have imported ten "This excise, then will raise $7,500,000 per anmillions of gallons in one year of foreign spirits; [num**deduct one million for expence of colleca drop of which could not sometimes be found by a traveller in a whole day's ride, within fifty miles of a seaport; and yet our foreign liquors have cost about as much as, by drawback, reduced the net revenue to three millions and a half. This, perhaps, is more than the average; and we will call it three mil. lions, to aid the suppositions. In 1804 we imported 10,488,696 gallons of spirits, the average duty on which was more than 29 cents per gallon-we also imported 3,003,312 gallons of wine, the average duty on which was alf It is probable this source of revenue would most 32 cents per gallon, producing together a reproduce at least eight millions. With all their navy venue of $4,059,124 19-of which were re-exported the British could not watch the American coast as closely as they watch the Atlantic shores of France, as it were at their doors; and of our vessels (whe ther on the coast of France, or the high seas, or at the mouths of our own harbors) they do not seize The citizens of the United States living on the more than one of three engaged in the commerce, sea board, or in the immediate neighborhood of seathough they are not prepared as they would be if port towns, constituting not one sixth of the whole open, undissembled, candid war were declared. It population, have paid at least three fourths of this should be recollected also, that the United States revenue of three millions; and what has been the can and probably would soon have afloat 1000 or inconvenience or hardship of it? Let a man look 1200 of the wickedest and most active privateers that at it fairly. If the one sixth of the people have paid, ever were on the ocean, and that a vast quantity of without being the least oppressed or feeling the least the richest commerce of Britain passes by our inconvenience from the tax, three fourths of three coasts. We have the ships and vessels fitted for the millions a year for foreign spirituous liquors, can it service; but, what is more, we have "200,000 sea- be believed that the whole people will be unwilling, men and half seamen," a quantity greater, perhaps, or are unable to pay for all their ardent drinks, the than all the world possesses besides, Great Britain small comparative sum of seven millions and a half ?herself excepted. Does any man suppose that a The proportion of the tax upon the whole will then spot of the navigable world, from the sea of Kam-be as the tax is at present on the part, as 1 is to 2— schatka to the Irish channel (between England and that is, for one cent that the whole of the people will Ireland) will be unvisited by these privateers? Cap- have to pay, a part of the people now pay 2 cents. tures will be made upon the coast of England-in ** Fruits being perishable, the duty might be the sight of her 71's; many will be retaken, but lower on the spirits produced from them-the desome will arrive safe, and the duties on the cargoes ficiency to be made up by a higher duty on those will run up very fast, being doubled, Imade of foreign materials. tion and losses, and we have a clear revenue of six With such prospects is it not sinful to " despair millions and a half, and more than five millions of the republic?" Our resources are like the infant above the wants of the secretary of the treasury, Hercules in the cradle-let the serpents of despowithout oppressing or texing any part of the com-tism attack us, and our strength will be manifest.munity, or sending out,swarms of officers, like lo- There is no country under heaven with the same custs, to eat up their substance. Besides, thirteen population, that has so much general wealth; and like hundred thousand dollars might be raised from the our soil, our resources are new and vigorous. And usual sales of public land, and the contemplated tax to guarantee the whole, if a guarantee is necessary, upon retailers, the latter to be collected by the same there is a public property in LAND (not in figures or persons who collect the excise upon whiskey. Other loans Add the present debt say piper money!)—but firm substantial soil, worth, (and will ultimately produce), from six to seven hundred millions of dollars. Our population is doubling 3,000,000 itself in every 25 years, and the wealth of the coun10,000,000 try is trebled in the same period. Labor begins to 6,500,000 be employed in all parts of the country to the best 5,400,000 advantage. The states are full of machinery-and the ingenuity and enterprise of our people are second to none under the canopy of the sky. 'LET CONGRESS, WHICH SHOULD BE THE FOUNTAIN OF WISDOM AND ENERGY, PUT THEIR TRUST IN THAT PROVIDENCE WHICH NEVER DESERTS A GOOD 600,000 $26,200 000 100,000,000 Suppose the war to last ten years, though no man believes it will last more than from two to five years, CAUSE; RISE UP IN THE MAJESTY OF THE PEOPLE if carried on with vigor, and we shall have borrowed WHO HAVE GIVEN THEM THE LEAD, AND FEAR By direct loans $35,000,000 NO DANGER. War, by this means, may be avoidedif it must come, we shall be prepared to meet it as we 40,000,000 ought. The resources of the country are adequate to its wants, and he who doubts should be suspect$175,000 000 ed. It is time to act or at least to leave off talking. As the last section of this monition is only in our But during the whole of the war we have a surplus of revenue beyond the apparent wants of the Power, we obey it by concluding this very long ar ticle; under a hope that if it does no good to the secretary of six millions each year, and, from our sinking fund, have in the treasury, at the end of 20 nation, it may furnish a little amusement to some years, nearly thirteen millions of dollars. So that individuals composing it. and owe the whole real amount of debt cannot be assum. The ordinary expences of a peace Expence of government and interest Sales of land Many small items Whole revenue The British Minister. It has been doubted, by several great men, whe$6,100,000 ther language contributed more to the advancement or hindrance of human knowledge, and an eminent 5,500,000 scholar of the last century has said that the English 11,600 000 ber of defects. When we consider the variety of language, of all others, possessed the greatest numinterpretations which may be given to the same phrases; the contradictory constructions of the same words; and the easy transposition of sentences to suit the particular views of the writer or reader, we are inclined to give a ready assent to the correctnesss of the opinion. $15,000,000 6,500,000 G00,000 $ 22,500,000 A sum must certainly within the means of the people-and which will leave almost 11 millions a year applicable to the reduction of the national debt, and effect its whole redemption in from 10 to 12 years. Diplomatic writers who should, of all others, seek to be the most perspicuous, so far from endea voring to attain so desirable an object, even boast of the ingenuity with which they can cast a shade of obscurity over every line they pen. Explanations are ready for every emergency, and a negocia tion, which might be concluded in a couple of days, is thus kept up, always to the dishonor of one or It may be urged by the fastidious that congress other of the parties, for as many years. Mr. Foster have no constitutional right to compel the states to whose meaning, if we believe himself, has not been make these "direct loans" and that some will not understood on any essential point of his corresponcomply with this requisition. It can hardly be be-dence, has lately complained, in a whining strain of lieved that any would refuse; but to guard against puerility, to the secretary of state, "that the import it, let it be called a tax and its reimbursment a dona-of his former letters (anticipating we presume the tion. The first may be coerced and the latter will same fate to the present) has been misunderstood in not be rejected! The fact will be the same, except two important circumstances."* We shall not stop the state refusing will lose so much money as the to ask Mr. Foster why the discovery of this importexpence to be incurred by appointing extra commis-ant misunderstanding was not made sooner: sioners, assessors, collectors, &c. The matter may perhaps he knew the moment for explanation: be so arranged that interest shall lead all heartily but we shall proceed to inquire whether it were into it. The revenue to be derived from whiskey, possible that the import of his letters in these "two at a first view may be considered extravagant-but important circumstances" could be understood in we have actually paid more (per gallon) on foreign any other sense than that given to them by the sespirits, and can as easily pay it on the domestic ar-cretary of state. The import which he denies to ticle. The estimate of the quantity distilled is below the real amount. * See Weekly Register, p. 377. he conveyed by his words is, on the first point, that father would treat an obstinate child: he does not he had demanded that the United States' govern say, "go and do this," but with the rod of correcment should pass a law for the introduction of tion in his hand repeats, "if you do not do this, British goods into the American ports," and on the sir, you shall be flogged." But let us proceed to the second point, “that the United States should unecond point of misunderstanding, namely “that the dertake to force France to receive into her harbors, United States should undertake to force France to British manufactures. I beg permission, sir, (says receive into her harbors, British manufactures.". Mr. Foster) to declare that neither of these demands This also Mr. Foster begs permission to declare is have [has] been made by me, and that my meaning an interpretation of his meaning not warranted by must not have been understood, if such was con his language. Either the president and secretary of ceived to have been its import." With respect to state (for both of them have thus construed the the first point, unless Mr. Foster is so nice a logi minister's letters) have purposely intended to decian as to draw a line of distinction between the ceive the people of the United States, or they have passing a law for the introduction of British goods, drawn the only inference fairly deducible from the and the repeal of a law already in operation to pro premises. Let us examine the grounds of their hibit it, we are really at a loss to conceive upon what opinion. Great Britain affects to deny that the other ground he has declared that he made no such president had a right to consider the Berlin and demand. In his letter to the secretary of state of Milan decrees as revoked, and under that presumpthe 3d July, 1811,† we find the following passage, tion, she continues to pursue what she calls retaliaI am instructed by my government to urge to that tory measures against France, or in other words of the United States, the injustice of thus enforcing her ships of war continue to capture every Amerithat act (the non-importation) against his majesty's can vessel bound to or from the ports of France. dominions, and I cannot but hope that a spirit of The United States, on the contrary, maintain that justice will induce the United States to reconsider these decrees have been repealed, or that they have the line of conduct they have pursued, and at least at least, been so far modified as no longer to operate to re-establish their former state of strict neutrality." against their neutral commerce. Now as the ope. Again, in his letter, of July 14th, "Allow merations of those decrees could be no farther a subthen, sir, to repeat my request to learn from you,ject of complaint by us, than as they immediately whether I may not convey to his royal highness interfered with our neutral rights; and as we what I know would be most grateful to his royal could have no possible claim to urge their revocation highness' feelings, namely, the hope that he may be with respect to other nations, or so far as they enabled by the speedy return of America from he formed a part of the municipal regulations of unfriendly attitude (the operation of the non impor-France; we were certainly bound to consider such tation act) towards Great Britain, to forget altogeth-modification as conforming to the provisions of the er (generous soul!) that he ever was obliged to have act of congress of May 1, 1810, and consequently as any other object in view besides that of endeavoring calling for the proclamation of the president, which to promote the best understanding possible between renewed the intercourse between the country so the two countries." Again July 26th," From modifying its edicts and the United States. "The every consideration which equity, good policy or violations of neutral commerce alluded to in this interest can suggest, there appears to be such a call act were such as were committed on the high seas. upon America to give up this system (the non-impor-It was in the trade between the United States and tation) which favors France to the injury of Great the British dominions, that France had violated Britain, that I cannot, however little satisfactory the rights of the United States by her blockading your communications are, as yet abandon all hopes edicts It was with the trade of France and her that even before the congress meet, a new view may allies, that Great Britain had committed similar be taken of the subject by the president, which will violations, by similar edicts. It was the revocation lead to a more happy result.' Can any language of those edicts which the United States had in convey an acknowledgment, that such a demand had view, when they passed the law of May 1, 1810."* been made, more unequivocally than the following? Yet Great Britain complains that we have violated In his letter of October 22nd. "I beg you will per our neutrality by enforcing the provisions of this mit me to make some remarks in reply to your letter act against her; and therefore treats us upon the of October 1st, being extremely anxious to do away high seas as her enemies, and the allies of France, the impression which you seem to have received, and promises to continue this war upon our comrelative to the demand I had made for a repeal of merce, until France shall have repealed her decrees the non-importation act of the present year-however in toto. Those decrees, it will be recollected, conyou view the demand made on the part of Great tain provisions with which we, as a neutral nation, Britain, I can safely say, that it was made in conse have no pretentions to intermeddle. All that we quence of its appearing," &c. &c. &c. It was in had a right to ask, all that was contemplated in the deed hardly to be expected that the representative provisions of the act has been done on the part of of a nation renowned for its honor, would, in two France; and notwithstanding, Mr. Foster tells us months," nay, not so much," after having penned that “not until the French decrees shall be effectathe preceding paragragh, have had the shameless ally repealed, and thereby neutral commerce restoreffrontery to declare that he had made no such demand, ed to the situation in which it stood previously to —He only meant to say that his royal master would their promulgation, can his royal highness conceive retaliate upon us if we refused to admit his vessels himself justified, consistently with what he owes into our ports. He could not think of condescend to the safety and honor of Great Britain, in foregoing to ask us for a repeal of our law, but he would ing the just measures of retaliation, which his frighten us into the measure by threatening us with majesty in his defence was necessitated to adopt the wrath of his offended master; as an angry against them." Now, previously to the promul gation of those edicts, the manufactures of Great * Weekly Register, p. 160. |