statement and settlement of the treasurer's accounts have not been found practicable. To expedite and facilitate, however, the accomplishment of that object, proceedings have been instituted to withdraw the treasury notes from the banks for the purpose of cancelling them; to acertain the character of the bank notes upon special deposit, for the purpose of claiming payment, or an effective credit, from the banks which issued them; and to induce the banks of the interior to transfer, from time to time, the treasurer's balances, to the banks of the commercial cities on the Atlantic, for the purposes of a periodical settlement. The success of these proceedings, the operation of the Bank of the United States, the collection of the revenue in the lawful currency; and, above all, the improvements contemplated by congress in the constitution of the department; are objects of high and urgent importance, demanding constant vigilance and care. The successive attempts made by this department to relieve the administration of the finances from its embarrassments, have been ineffectual. There was no magic in a mere treasury instruction to the collectors of the revenue, which could by its own virtue, charm gold and silver again into circulation. The people, individually, did not possess a metallic medium, and could not be expected to procure it, throughout the country, as well as in the cities, by any exertion, unaided by the banks. And the banks, too timid, or too interested, declined every overture to a co-operation, for reinstating the lawful currency. In this state of things, the treasury, nay, the legislature, remained passive. The power of | coercing the banks was limited to the rejection of their notes in the payment of duties and taxes, and to the exclusion of their agency in the custody and distribution of the revenue; but the exercise of that power would not generate a coin currency, although it would certainly act oppressively upon the people, and put at hazard every sum of money, which was due the government. Until, therefore, a substitute was provided for the paper of the banks, it would have been a measure of useless and impolitic severity towards the community, to insist that all contributions to the expenses of the government, should be paid in a medium, which, it is repeated, the community did not possess, and could not procure. The opinion here expressed, has been the opinion of all the States except the eastern States. In the southern and western States the payments in coin had been suspended; and in most of them the notes of the local banks constituted the general circulating medium: for the treasury note medium circulated, almost exclusively, in the commercial cities. The obvious difference between the situation of the eastern section and of the other sections of the Union, naturally produced a difference of interests and of dispositions upon the question of resuming payments in coin. The eastern section urged the measure at all hazards. The other sections, and particularly the middle section, objected to it; each bank professing, nevertheless, a willingness to adopt it, upon a simultaneous and general movement of the banks, directed to that object. With respect to the eastern section, a peremptory requisition for a return to payments in coin, would congress, for the collection of the revenue in the lawful money of the United States, after the 20th of February, 1817, becomes, at once, just, politic, and practicable. The steps which were taken to organize the bank of the United States; the early and satisfactory completion of the subscriptions to its capital, and the advertisement appointing the 28th of the ensu ing October, for the election of directors by the stockholders, have been heretofore communicat have left the circulating medium | for the ordinary uses of the people, much the same in quantity and kind, whether the distant banks conformed to it or not. But with respect to the other sections, such a requisition, if the local banks did not conform to it, must have deprived the people of their only means of paying the public taxes, and of transacting the pecuniary business of life. It was not, then, an insensibility to the pernicious course of banking which had of late been pursued, nor a disposi-ed to the President, together with tion to relinquish the cardinal policy of restoring the lawful national currency, that induced this department, during the year 1815, to acquiesce in the state of the currency, such as it was found when the present Secretary was appointed, and such as it had been left by Congress, after the deliberations of a six months' session; but the acquiescence, painful as it was, proceeded entirely from a sense of duty to the government, and of justice to the community; from a solicitude to preserve the public revenue, as well as to prevent private distress; and from a conviction, that the legislative wisdom and authority were alone competent to provide the means of removing the great evil that existed, without incurring the danger of introducing a greater evil. The result of the proceedings of the last session of congress, has justified the opinion, and realized the hope, which were formed. The establishment of the bank of the United States will open the sources of an uniform currency, independent of the state banks; and, as the people will be thus supplied with a medium which can be used for every public and private purpose, the peremptory requisition of the resolution of the letter which was addressed to the bank commissioners at Philadelphia, recommending that they should provide a place, and the materials proper and requisite for commencing the operations of the institution, as soon as the directors shall be chosen. The general solidity of the subscribers, as capitalists, and the extensive distribution of the stock throughout the Union, have confirmed the public hope and confidence in the compe tency of the bank to accomplish the great objects for which it is established. As soon as it appeared, upon a reasonable calculation, that the subscription to the capital of the bank of the United States would be filled, a proposition was offered to the consideration of the State Banks, for commencing the payments of small sums in coin on the first of October next, upon the principles, which, with the approbation of all the members of the Administration, were stated in the report made to the president on the 24th of June, 1816. The terms of the resolution of Congress seemed indeed to require, from the Treasury Department, an effort to facilitate the restoration of the lawful currency, even before the 20th of February, 1817; and, short of a general return to that currency, nothing was thought more likely to be acceptable and useful, than the proposition in question. But the effort has failed. The state banks, with few exceptions, have deemed a partial resumption of coin payments inexpedient; and the banks of the middle States (New York, Pennsylvania, and Maryland) have intimated that the first of July, 1817, will be the proper period, for resuming the banking operations, on the basis of a metallic capital. The rejection of the treasury proposition is regretted. Upon principle, there is no good reason why a debtor should not pay a part of his debts, although he cannot pay the whole; nor why he should refuse to pay his small debts, because he cannot pay the large. Upon experience, Banks (for instance, at this epoch, the Bank ol England) have been in the practice of paying coin, for their notes of a low denomination, while they refused that kind of payment for notes of a high denomination. And upon policy, it is clear, that the payment of small notes in coin, would soon beget confidence in bank paper of any amount; and, consequently, render a general payment in coin, easy and safe. The quantity of small notes abroad; the probability of a ruin through that medium, upon the Banks; and all the terrors, which bankers and brokers may feel, or imagine; will furnish no argument against the proposition, for a partial resumption of coin payments, at this time, which will not be more forcible, against a general resumption, at all times. But it is impossible to pass from disease to health, without some suffering; and the banks cannot expect to recover from the disorders of the present VOL. I. banking system, without encountering risks, and impairing profits. The rejection of the proposition has, however, constrained the trea sury to limit its exertions to preparatory arrangements, for the general collection of the revenue in the lawful currency, after the day prescribed by the Legislature. But referring the period for a general resumption of payments, in coin, to a day so distant as the first of July, 1817, (several months subsequent to the time prescribed by congress for the collection of the revenue, in the lawful currency, as well as to the time when the operations of the bank of the United States might be expected to commence,) is a measure of the most serious character; indicating a dangerous reliance of the State Banks upon a change in the policy, or a relaxation in the energy, of the legislative authority. Its effects, if unresisted, or if fostered by a temporizing disposition on the part of the government, must be to embarrass the Bank of the United States in the onset; to confine the issues of the notes of the National bank to the amount of the coin in its vaults; to deprive the people of the means of complying with the resolution of congress, for the collection of the revenue in coin; and to preserve to the state banks an illegitimate control over the money and currency of the nation. To the wisdom, patriotism, and virtue of congress, therefore, an appeal must be made; nor can it be supposed, that the State authorities will remain insensible to so calamitous a state of things. The powers of the government, vigorously and steadily exercised, are ample for redress and relief, and it is yet to be hoped, that the state banks will per ceive and avoid the ruinous consequences, to which the threat. 3 F ened conflict inevitably exposes | Sdly, in relation to the public debt; them. and 4thly, in relation to the misceilaneous business of the department. It must, however, be remembered, that until the accounts of the treasurer shall be finally balanced and settled, the statements which have been officially furnished by the register, for the immediate purposes of the present light of estimates, subject to such changes, as the ultimate examination of the accounting officers may produce. But it is not believed that any essential variance will occur. 1st. Of the Appropriations and Payments for 1816. The demands authorised by acts of appropriation to be made on the trea The second instalment of the subscription to the bank of the United States being paid; the price of gold and silver being obviously in a rapid course of reduction; the means possessed by the banks to reinstate their metallic capital, being faithfully applied to that object; a spirit of mutual concilia-report, are to be regarded in the tion and good will actuating the national and state institutions; and, in short, a solid foundation for public confidence being thus laid, what have the state banks to apprehend from a return to coin payments, when the national bank shall commence similar payments, (say in January next,) or when similar payments shall be exacted from the people, in the collection of duties and taxes, on the 20th of February, which will not be equally operative on the 1st of July, 1817? The sincerity and the honour of the directors of the state banks, who have proposed the last date as the proper period for the all-important reform contemplated, will not be impeached or doubted: but there is no legal obligation to conform to the proposition; and the occurrence of new incidents, or the perception of other views, may hereafter be thought to jus- priations, stated to the 1st of August, tify a change of council and of conduct. There is then no security for the government, or the community, but in the inflexible adherence to the system which congress has adopted. Having reviewed the general course of the treasury, as connected with the state of the currency, it becomes proper to exhibit, more particularly, the fiscal results1st, in relation to the appropria tions and payments for the year 1816; 2dly, in relation to the receipts at the treasury in 1816; sury for the year 1816, (independent For the civil depart- of For the military de partment, 7.794,250 75 For the naval establishment, 3,540,770 18 -16,729,622 75 4,204.911 For the public debt, 8,000,000 32,475,303 93 The payments made at the treasu- 1816, amounted to the sum of partment 4,235,236 75 For the naval department, For the public debt, (1,354,762 62, being part of the balance of the preceding year's appropriation,) 1,829,015 02 13,170,607 75 1,977,788 50 9,354,762 62 32,475,303 93 26,332,174 89 Dols. 6,143,129 04 2d. Of the Receipts of the Treasury in 1816. It is not within the scope of this report to enter into the details of that portion of the revenue, which has accrued, but has not become payable; nor to distinguish between the amount produced under the old or war, and under the new or peace, system of revenue. The main object is to exhibit the actual receipts of revenue at the treasury from the 1st of January to the 1st of August, 1816; and which have arisen from the following sources: 1. From cash in the treasury, (deducting an item of 6,692,407 55 in treasury notes, which had been paid for duties and taxes,) stated as subject to the future settlement of the treasurer's accounts, at 2. From revenue, including what was outstanding at the commencement of the year; to wit: Customs, (subject to a deduction of 1,829561 33 for debentures paid during the same period,) Direct tax, (independent of the assumed quotas,) 3,050,000 00 Assumed (after de 7,972,277 86 ducting 15 per cent.) by NewYork. 365,620 38 20,222 66 759,310 27 For the public debt, 4,630,381 42 7,972,277 86 And at the end of the year 1816, the appropriation for the military department, the naval department, and the public debt will, probably, be exhausted; but there will remain an unexpended balance of the appropriations for the civil department, foreign intercourse, and miscellaneous expenses, estimated at about the sum of 2,642,623 77 dollars. Ditto by South-Car Ditto by Georgia, Internal duties, Postage and incidental receipts, Sale of public lands, (excluding 211,440 50 sippi territory, but to be paid to Georgia,) received in the Missis Dolls. 6,298,652 26 21,354,743 74 3,713,963 68 3,864,000 00 127,025 38 676,710 40 |