The French Loans.

The United States have reimbursed the French Government, the full amount of the preceding, viz :

Liquidation of French Loans, &c.

By payments made at the Treasury for the discharge of the instalments of September 3 and November 4, 1795, four hundred and fifty three thousand seven hundred and fifty dollars, at eighteen dollars and fifteen cents By amount of supplies furnished during the late war to the Marine of France, under the agency of John Holker, Esq., Consul General, as settled at the Treasury, viz: Principal sum

Interest thereon, from September 3, 1783, to December 31, 1793

Subscribed to the Loan opened for the Foreign Debt, and for which certificates of Domestic Debt were issued in favor of J. Swan, Esq., agent duly authorized by the Committee of Public Safety of the National Con

vention.

Certificates bearing interest at 5 per
cent. per annum, from January 1,
1796, to the amount of one million
eight hundred and forty-eight thou-
sand nine hundred dollars
Certificates bearing interest at 4 per
cent. per annum, from same period,
one hundred and seventy-six thou-
sand dollars

Payment to the said agent by Treasury

warrant, No. 5132, dated July 22, 1795, for sixteen dollars and four cents, being the balance due the Republic of France, on loan of money and other supplies obtained by the United States of the Government of France, during the late war

This subscription is in discharge of the residuary instalments, which had not become due on the 31st of December, 1795, viz:

Three of 1,500,000 each, of the Loan of eighteen millions, at 5 per

Statement of Exports-Estimates for 1796.

STATEMENT OF EXPORTS.

For the support of light-houses,
beacons, buoys, and public piers,
For satisfying certain miscellane-
ous claims and expenses
For the Department of War, com-
prising the following general ob-
jects of expenditure:
The support of the Army, including
the expenses in the clothing, hos-
pital, ordnance, Quartermaster,
and Indian departments, the de-
fensive protection of the frontiers,
contingencies, and the improve-
ment and completion of sundry
fortifications
$1,480,247
The Naval Department 73,934
The payment of milita-

85,098

Estimates for 1796.

24,000 00
33,672 09

ry pensions Total estimate for War Department, $1,639,279 00 Amounting, together, to

- $2,238,543 94

In addition to the said estimates, the following sums are stated, on the presumption that laws authorizing the expenditure will be passed, during the present session of Congress:

For defraying the expenses of the intercourse of
United States with foreign nations - $40,000 00
For defraying the contingent expenses
of the Government of the United
States

For the compensation of clerks in the
several Loan offices, and for books
and stationery

Amounting to

14,000 00

$74,000 00

In addition to the sums charged upon the revenue, arising from imports and tonnage, and domestic distilled spirits, and stills, there are other debts of the United States which will fall due in the year 1796, and for which provision is necessary.

The following are of this decription:

A loan had of the Bank of New York, pursuant to
an act passed on the 20th of March,
1794, for

An instalment of $800,000, had of the
Bank of the United States, pursu-
ant to the same act

Amounting, together, to

- $200,000 00

200,000 00

- $400,000 00

The interest of the loans before mentioned is secured by the existing revenues, but there is no authority to reimburse the principal, except from the proceeds of the duties upon carriages for the conveyance of persons, licences for selling wines and foreign distilled spirits, snuff mills, refined sugar, and property sold at auction. The present state of these revenues does not justify a reliance that they will be sufficiently productive, in the year 1796, to admit of the reimbursement of the debts with which they are charged. The alternative which offers is, therefore, either an appropriation of other revenues, or a payment from the proceeds of new loans.

If it were certain that the exigencies of the 20,000 00 United States would not require appropriations beyond the sums at present contemplated, and that the revenue would equal the estimates, a sum sufficient to cover any deficiency of the appropriated revenues might be safely charged upon the duties arising from imports and tonnage; but, in the actual state of uncertainty which necessarily exists, it is deemed expedient to keep in view the auxiliary resource provided by the tenth section of the act, entitled "An act making provision for the support of public credit, and for the redemption of the public debt."

The funds out of which appropriations may be made for the purposes before mentioned, are, 1st, The sum of six hundred thousand dollars of the proceeds of duties on imports and tonnage, which will accrue in the year 1796, which sum is annually reserved for the support of Government, by the act, entitled "An act making provision for the Debt of the United States ;" and 2d, The surplus of revenue and income which will accrue to the end of the year 1796, after satisfying the objects for which appropriations have been heretofore made.

Subjoined to this report, is a statement, marked A, which exhibits a prospective view of the revenue and expenditure of the United States, for the ensuing year, by which it satisfactorily appears that the proceeds of the duties on imports and tonnage, and on domestic distilled spirits, and on stills, will be adequate to the discharge of the appropriations already made, including the reimbursement of the domestic stock, bearing a present interest of six per ccnt.; and also to the payment of the sums contained in the estimates, now presented, for the current service.

But, as a great proportion of the revenue arising from imports, is subject to long credits, the customary anticipations, by means of loans, will continue to be necessary.

The following sums will, moreover, be required, in the year 1796, for the payment of which the laws contemplate no provision, except the proceeds of certain loans, which are authorized by the act last recited:

1st. An instalment of one million of guilders,
which will fall due in Amsterdam, on the 1st of
June ensuing, to pay which, with the charges
thereon, according to the course of exchange
which has lately obtained, there will be neces-
sary, the sum of
- $414,100 00

2d. An instalment of the loan of two
millions, had of the Bank of the
United States, for stock of said
Bank, held by the United States,
which instalment will fall due on
the last day of the present year
3d. An instalment of the same loan,
which will fall due on the last day
of December, 1796

Amounting to

200,000 00

200,000 00

$814,100 00

Estimates for 1796.

The view, now presented, of the expenditure and revenue for the year 1796, authorizes the following conclusions:

There are other loans detailed in the annexed due in Amsterdam and Antwerp, could be restatement, which will also fall due to the Bank of loaned with the consent of the creditors. The the United States in the course of the ensuing experiment cannot yet be considered as fully year; but, as they are merely anticipations of the made; but the prospect of success is not encourrevenue, for refunding which there exist legal pro- aging. The objections against a mutation of the visions, they are introduced to show the course of contracts in the manner proposed, which have receipt and expenditure, and the extent to which been stated, are, generally, 1st. That the proposed future anticipations will be requisite. new stock will be redeemable at the pleasure of the United States, by which condition the Government will possess the power of reducing the rate of interest, or refunding the capital at periods when the reimbursement may be difficult, or disadvantageous to the creditors. 2d. That the proposed addition of one-half per centum per annum to the rates of interest, does not afford an equivalent for the expenses of agency, loss upon the exchange, and the risk of remittances from America. And, 3d. That the facilities which attend the negotiation of bonds payable to bearer, over funds which can only be transferred at the Treasury or loan offices in the United States, render the obligations of foreign debt, in their present form, particularly eligible for foreign creditors.

1st. That, after making a liberal allowance for unforeseen demands which may require appropriations, and for deficiencies, the revenue will be adequate to the annual reimbursement of the six per cent. stock, bearing a present interest; to the payment of the interest on the foreign and domestic debt; and to the discharge of the sums estima

ted for the current service.

2d. That the anticipations of the revenue which may exist at the close of the present year, must be continued for the year ensuing.

And, 3d. That the instalment of the foreign debt, which will fall due on the 1st of June next, and certain instalments of domestic loans, before mentioned, must be re-loaned, or satisfied out of the proceeds of new revenues.

On this statement the Secretary takes the liberty to observe, that the act of the last session, entitled "An act making further provision for the support of public credit, and for the redemption of the public debt," contains the following provisions:

1st. A proposal for re-loaning the whole of the foreign debt, and converting the same into a funded domestic stock, transferable at the Treasury, and the respective loan offices; the principal stock to be redeemable at the pleasure of the United States, and the interest to be payable quarteryearly, with an additional interest of one-half per centum per annum to the rates of interest secured by former contracts.

2d. A power to the Commissioners of the Sinking Fund to borrow, with the approbation of the President of the United States, any sums requisite for the payment of any instalments, or parts of principal as the same shall become due. It is, however, provided that the interest of any loan so made, shall not exceed six per centum per annum, and that the principal shall be liable to reimbursement, at the pleasure of the United States. Agreeably to the proposal first mentioned, the accounts subsisting between the United States and France have been finally adjusted to the satisfaction of an authorized agent of the French Republic; the instalments which fell due in the present year, have been paid at the Treasury, and the remainder of the debt has been subscribed to the proposed loan, and converted into funded domestic stock, bearing interest at five and one-half and four and one-half per centum per annum.

By this operation the debt, as due under former contracts, to the Republic of France, may be considered as discharged.

It is not yet ascertained that these objections will be conclusive in the minds of the creditors against the proposed re-loan, and circumstances are not unlikely to happen which may, in some degree, abate their force. Nevertheless, as the object of converting the foreign debt into domestic stock is of real importance to the United States; as unprecedented difficulties attend remittances at present; as similar difficulties will always exist, in a greater or less degree, in time of war; and as, in proportion to their operation, they must endanger the public credit; the Secretary respectfully submits it to the House of Representatives to consider and determine whether some modification of the existing proposal be not expedient.

Considering the actual state of Holland, and the restrictions upon our intercourse with that country, it was deemed for the interest of the United States to propose a postponement of the instalment which fell due in the present year. It has, however, been conclusively ascertained that no additional loans can be obtained in Holland; of course, that the United States must be provided to make the reimbursements stipulated in their contracts.

The measures adopted by this Department to effect a reimbursement, were seasonable, and such as promised to be effectual; but, owing solely to the war, and the stagnation of credit occasioned by the Revolution, the instalment which fell due on the first of June, had not been paid at the date of the last advices in August.

The causes of the delay were, however, well understood by the creditors; and as they neither originated with, nor could be controlled by, the United States, and as the interest has been paid, the public credit has as yet suffered no blemish.

It being rendered certain that funds to meet the instalments of the foreign debt, now annually fallMeasures have been, moreover, taken for as- ing due, must be remitted from the United States, certaining whether the residue of the foreign debt, I measures have been taken for ascertaining whe

Estimates for 1796.

ther the powers vested by law in the Commis- manner as that there may exist a certainty of obsioners of the Sinking Fund, contain an adequate taining the necessary funds, with that strict puncresource. As before mentioned, these powers li- tuality which it is necessary to observe in whatmit the rate of interest upon any loan to six per ever relates to the delicate concerns of public centum per annum, and, moreover, provide that credit. the capitals borrowed shall be redeemable at the option of the Government.

A.-An Estimate of the Expenditures and Revenue of the United States, for the year 1796. ESTIMATED EXPENDITURES FOR THE YEAR 1796, viz:

For the Interest on the Foreign Debt.

One year's interest on 29,500,000 guilders, being the debt due in Amsterdam and Antwerp, supposing the instalment for 1795 to have been paid, calculated according to the different contracts, bearing interest at four, four and one-half, and five per centum per annum, is, guilders $1,385,250 00 Commissions to the bankers for making the payments, at one per centum

Which sum of guilders, 1,399,102 10, calculated at 40 cents per guilder, is equal to

But, supposing the exchange to be at 41 cents per guilder, which is likely to be the case, there will be necsssary, to effect remittances, the further sum of

For the interest on the Domestic Debt, iucluding the annuity neces-
sary for redeeming the six per cent. stock, bearing a present in-
terest, viz:

Interest and redeeming annuity, for one year, on the six per cent.
stock, subscribed on the 30th September, 1795, calculated on the
principle of the act of March 3, 1795, supposing no part of the ba-
lances due to certain States, to be subject to reimbursement
But, supposing the balances due to certain States to be transferred,
agreeably to the act authorizing transfers thereof, an additional an-
nuity, to redeem the same, will be necessary, amounting to

For the interest on the three per cent. stock, subscribed on the 30th of
September, 1795, calculated for one year