France and Spain-Louisiana.

landed in France, as they are in French ships. I least double the whole commerce and number of The first advantage of this treaty would be, if seamen employed by France, and quadruple it immediately entered into, the saving to America with respect to her navigation with America. It twenty-five thousand seamen, who will, without should also be considered that this works doubly this encouragement go into the British service; in favor of France, Ist, So far as it is a direct adand thus increase not only her relative but her vantage to her maritime power; 2nd, So far as actual force: 2d. The sale of a number of her it subtracts from the navigation of England. ships to France, which will now become a dead The benefits that will result to the manufaecapital in her hands : 3d. The preserving to the tures of France from this operation are incalcuUnited States their fisheries, which may be other-lable: 1st, The raw materials will be purchased wise greatly affected by the removal of their sea- on easy terms to the manufacturer; 2nd, The inmen to Britain. In these objects France has a tercourse that this system will establish between mutual advantage; and I will venture to say, that the two nations will make their fabrics known. she never acts more inconsistently with her own and render them fashionable in America ; will interest, or more conformably with that of Brit- draw off their custom from England, whose fabries ain, than when, under the idea of raising a fish- will continue to be charged with a heavy duty, ery at home, while she has not seamen or ship-upless receding from her navigation act, she purping for her other branches of commerce, she en-chases an exemption. deavors to discourage the fisheries of America, Useful as this act may have been in its comwhich, from a variety of physical causes, can mencement, when the Dutch were the general alone keep them from falling into the hands of carriers and rivals of Britain, and while the nations the English. France should bear in mind, that, of Europe were ignorant of commercial princiwere her colonies as extensive as those of Brit: ples, very, enlightened statesmen now see many ain; were her trade in Europe and America equal inconveniences in it to the general commerce of to hers; yet, for the reasons I have mentioned, England; nor is there anything necessary to its arising from the geographical and physical situa- entire overthrow, but for other nations to pass tion of England and Ireland, she would not pos- similar laws, so far as respect Britain, while their sess more than two-thirds of the number of sea- trade is put upon a liberal footing with regard to men, these circumstances alone producing nearly other nations. This, by promoting their own comas many as all the other trade of Britain. France merce of exchange, while that of Britain is recan only increase her relative strength by dimin- stricted, will place her flag under such disadvanishing that of her rival, and keeping her from tages, that her own merchants will seek a foreign drawing from other sources new means of power. boitom when they have an operation that requires

France may injure, and perhaps ruin, the whale a circuitous voyage. This must ultimately, in fishery in Američa; but England only will profit spite of all her prejudices, compel her to repea! by it. The first war will break up her establish this selfish law, after having some time suffered ments; and the Americans in her service will re- under it. But while the navigation act exists in turn with their wealth into their own country. Britain, it will, under the circumstances of the

The interest that France will have in this treaty treaty I suggest, operate as a bounty on the naviwill be much more extensive: 1st, The raising up gation and fabrics of France; because it is obvious a new marine Power; 2d, Giving ihat Power such that the freight and charge on any specific article an interest in her prosperity, as must not only keep carried in a ship that may make a circuitous voyit from being inimical to, but, on the contrary, age, is much less than they would be if part of the frequently connected with her in hostile opera- voyage was made in ballast. Thus, a French tions; 3d, The transfer of ships to France; 4th, ship carrying a cargo of wine to America, taking The increase of French seamen: for, as the wages in a load of tobacco, and returning from thence to of seamen are lower in France than in America, Bordeaux, could take the wine on a much smaller and must continue to be so, on account of the de- freight than if the duties imposed in America on mand for men in a new country, while, on the the importation of wine in a French ship should other hand, ships, and the provisions for their out- be equivalent to the duties upon tobacco imported fit, are cheaper in America, French merchants, in an American ship into France; because, in by fitting many of these vessels, and navigating that case, the French ship would go out empty them with French seamen, will be able to sail for the tobacco, and the American ship empty for cheaper than the Americans themselves, and thus the wine; and the double freight and insurance increase the number of their seamen. These sea- must be charged on each of these articles. It men in case, of a war, will be drawn into the should always be remembered, that whatever is navy; while their places will be supplied, during saved in freight is a bounty upon agriculture and the war, at somewhat more expense, by Ameri- manufactures. But even this is a small advantage cans, without injuring their commerce. In the compared to that derived from the increase of cod fishery, France will derive clear and obvious adventures that will be occasioned by the very advantages from the American ports for her out-circumstance of freight for the whole outward and fits, &c.

homeward voyage, and the consequent consumpBut even these advantages will be inferior to tion of the commodities of the country that enthat derived from the increase of the commerce courages it. of exchange, by that removal of restrictions; an In this plan, Spain, (under some restrictions operation which, I will venture to say, will at l with regard to South America,) the Italian States

The Sinking Fund.

and any others who should incline to engage it it, ly embrace them; and their mutual interest will should be associated; without, however, delaying lead them to protect them against the power of the project between France and the United States, any maratime despot. The advantage that the lest they should lose, and Britain acquire, at this vessels of this association would have over all critical moment, that great body of seamen, who others, could not fail to produce such a revolution will, by the peace, be thrown out of employment. in the principles and practice of commerce and

Were France to declare her determination to navigation as would be highly interesting to husupport this liberal system, such is her advantage manity, honorable to the nations who should first in point of product and manufactures, that she adopt the system, and not unworthy of the enlarg. could not fail to command the greatest foreign ed views of that distinguished statesman to whom commerce of any nation in the world.

Europe is already so much indebted, and who, The wealth arising from this source would be alone, has sufficient power to carry it into effect. unbounded. But while her great capital is in the centre of the Republic, she never can have an extensive coasting trade; and she can only make up this deficiency, in a contest with Britain, by the increase of her wealth and credit; by pursing up

SINKING FUND. new maritime nations; by which, if she adds little to her positive power, she adds much to her [Communicated to the Senate, Dec. 17, 1801.] relative strength, in diminishing that of her rival.

CiTY OF WASHINGTON, Dec. 16, 1801. To cite a single instance: America can build The Commissioners of the Sinking Fund reand victual her whaling vessels much cheaper than spectfully report to Congress as follows: That either France or England, and of course afford oil the measures which have been authorized by the cheaper; but if France excludes American oil board, subsequent to their report, of the 28th of from her market, she throws such a discourage- November, 1800, so far as the same have been ment upon this fishery as will compel the whalers completed, are fully detailed in the report of the to seek another place of residence. In this case, Secretary of the Treasury to this board, dated the though a few may be invited to France, the great 14th of the present month, and in the proceedings bulk of them will go to England: First, because of of the officers of the Treasury, therein referred to, their language, religion, and habits; and next, be- which are herewith transmitted, and prayed to be cause they know that a war will ruin their estab- received as part of this report. lishments in France, and thus it will encourage A. BALDWIN, Pres't Senate, pro tem. those of Britain. The very companies established J. MARSHALL, Chief Justice U. S. in France, at great national expense, will receive JAMES MADISON, Secretary of State. their oil at sea from English fishermen. Thus A. GALLATIN, Secretary Treasury. fifteen thousand men will be thrown into the scale LEVI LINCOLN, U. States Attorney.

to support one thousand in the vain attempt to establish a fishery in France. This, however, is a small part of the loss. By the encourage

TREASURY DEPARTMENT, Dec. 14, 1801. ment which France might give to the fisheries of

The Secretary of the Treasury respectfully rethe United States, she could destroy those of Brit- ports to the Commissioners of the Sinking Fund : as the French ships that brought oil, or States have been made, since the date of the last

That no purchases of the debt of the United the American that brought French goods, would not go or return empty, a greater market would report to Congress, of the 28th day of November, be created for French wines, brandies, &c. Let 1800; and that the sums of capital stock heretothe loss upon this be calculated. The additional fore purchased and transferred, prior to the presexpense upon the first price to the inhabitants of ent year, in trust for the United States, the interFrance, and the countries given, they will find reduction of the public debt

, amount to four mil

est whereon is appropriated by law, towards the that they purchase their oil at a ruinous rate. Let the difference between fifteen thousand men, three hundred and sixty-seven dollars and eighty

lions seven hundred and thirty-eight thousand added to those employed in the British fishery, and three cents, as will more particularly appear from eight thousand taken from them

by the encourage the document hereto annexed, (marked A.) ment given to the American fishery by France, making together the loss or gain of iwenty-three

That the following sums have been applied tothousand to Britain, be put in the scale with the wards the discharge of the principal debt of the comparatively few fishermen France can make, United States, since the date of the last report to and she will form a fair estimate of the attempt, Congress, of the 28th of November, 1800: considering her as a rival power to Britain. 1st. To the sixth instalment of the six per cent

Great as are the advantages proposed by this stock, bearing a present interest, which, pursusystem to the commerce and navigation of France, ant to the act, entitled "An act making further they are small compared to those which she will provision for the support of public credit, and derive from having opened a way to the establish- for the redemption of the public debt," passed ment of free and liberal principles, that cannot on the 3d day of March, 1795, and the act in

room for the exertion of those talents addition thereto, passed on the 28th day of and that industry for which her citizens are dis- April, 1796, became payable on the first day of tinguished. Every nation, except one, will eager- January, 1801, the sum of . - $760,650 13

of Britain,

ain; and,

fail to give

[blocks in formation]

2d. To the payment of the ninth in

stalment of the subscription loan for bank stock, due on the last day

of December, 1800 3d. To the payment of the first in

stalment of a loan of two million of guilders, obtained in Holland, and which' fell due the present year, pursuant to a contract, dated the 9th of March, 1784, estimated

at 40 cents per guilder 4th. To the payment of the fourth

instalment of a loan of one million guilders, obtained in Holland, and which fell due in the present year, pursuant to a contract, dated the 1st of June, 1787, estimated at

40 cents per guilder 5th. To the payment of the third

instalment of a loan of one mil. lion of guilders, obtained in Holland, and which fell due in the present year, pursuant to a contract, daied 13th March, 1788, es

timated at 40 cents per guilder 6th. To the payment of the second

instalment of a loan of three millions of guilders, obtained in Holland, and which fell due in the present year, pursuant to a contract, dated first of January, 1790, estimated at forty cents per guilder

100,000 00

Making, in the whole, an equal amount to the reimbursements before mentioned.

There remained in the hands of the Treasurer of the United States, as agent of the Board of Commissioners, on the twelfth day of the present month, four hundred and forty-nine thousand and

sixty-nine dollars and thirty-one cents, which, 80,000 00 with the growing produce of other appropriated

funds, will be sufficient for the reimbursement, at the close of the year, of the seventh instalment of the heretofore deferred stock, now bearing an interest of six per cent. and the tenth instalment of the subscription loan for stock of the Bank of the

United States, which reimbursements are requir80,000 00 ed to be made by the 11th section of the act of

Congress, passed on the 3d of March, 1795, herein
before mentioned.
All which is most respectfully submitted, by


Secretary of the Treasury.

[The tables are omitted.] 240,000 00

Amounting in the whole, to 1,460,650 13

STATE OF THE FINANCES. The payments before enumerated have been made out of the following funds:

[Communicated to the Senate, Dec. 18th, 1801.] 1st. The interest on the sums which accrued upon

TREASURY DEPARTMENT, the stock purchased, and transferred to the

December 18, 1801. Commissioners of the Sinking Fund, in trust Sir: I have the honor to enclose a report prefor the United States, as particularly stated in pared in obedience to the directions of the aet the document hereto annexed,

supplementary to the act, entitled "An act to es(marked B)

$192,568 52 tablish the Treasury Department. 2d. The fund arising from the pay.

I have the honor to be, very respectfully, your ment of debts, which originated

obedient servant, prior to the present Constitution

ALBERT GALLATIN. of the United States, as particu

Hon. PRESIDENT OF THE SENATE. larly stated in the document hereunto annexed, (marked C)

7,704 79 2d. The funds arising from a divi

In obedience to the directions of the act supple dend on the capital stock belong

mentary to the act, entitled "An act to estabing to the United States, in the

lish the Treasury Department," the Secretary bank of said States, from 1st of

of the Treasury submits the following report July, to 31st December, 1799, af

and estimates: ter deducting the interest on the

The permanent revenues of the United States subscription loan for the same pe

according to the laws now in force, consist of, 1st, riod, as particularly stated in the

duties on merchandise and tonnage; 2d, internal document hereunto annexed,

duties on stills and domestic distilled spirits, re (marked D)

17,520 00 fined sugar, licenses to retailers, sales at auction, 4th. The proceeds of the duties on

and pleasurable carriages; 3d, proceeds of the goods, wares and merchandisé, im

sales of public lands; 4ih, duties on postage; õib, ported, on the tonnage of ships or

dividends on shares in the Bank of the United vessels, and on spirits distilled

States; 6th, incidental, arising from fees, fines, within the United States, and

and penalties, repayments in the Treasury, and stills, appropriated by the 8th sec

sales of public property other than lands.

State of the Finances. 1. Duties on merchandise and tonnage.— The into two distinct periods; the first, from the 1st receipts in the Treasury, arising from that source, day of January, 1790, to the 31st day of Decemhave amounted, for the year ending on the 30th ber, 1792, includes the three years which immediSeptember, 1801, to $10,126,213 92. If to this ately preceded the European maritime war; the sum be added the drawbacks paid by collectors on second includes the six first years of that war, the exportation of domestic distilled spirits and viz: from the commencement of 1793 to the close refined sugar, which are a charge on the internal of 1798. revenues; and that part of the additional duties, In order to obtain a distinct view, for each of laid in the year 1800, which did not operate dur- those two periods, of the annual average coning the year to which those receipts refer, the sum sumption of foreign articles, and of the annual which would have been received at the present average revenue which, at the rate of the present rate of duties, cannot be estimated at less than duties, would have accrued thereon, the table L $10,500,000. The amount of duties secured on has been prepared, which shows that the net anthe 30th September last, and falling due in the nual revenue which would, at the present rate of course of the year 1802, compared with that of duties, have accrued during each of those two pepreceding years, justifies an opinion, that, had the riods, amounts, on an average, for the years 1790 importations and exportations continued in the to 1792, to $6,163,000; and for the years 1793 to same proportion, those duties would have brought 1798, to $8,350,000. These sums constitute not in the Treasury, during the year 1802, near the receipts in the Treasury, but the revenue which $11,000,000

would have accrued during the respective years How far this branch of the revenue may be af- to which they refer. The first may be considered fected by the restoration of peace in Europe, is as the revenue accruing during the year 1791; the rather a subject of speculative conjecture than of last, as that accruing during the year ending 30th calculation. That it will be liable to sudden and June, 1796; and as, on account of the credit given considerable fluctuations, cannot be doubted ; and, for the payment of duties, the revenue accruing for that reason, a greater degree of correctness during one year constitutes nearly the receipts of may be obtained, by forming an estimate for a the year ending nine months later, those iwo number of years, than for any one year. The sums, and the receipts of the year ending on the period for which an estimate should be made, be- 30th of September, 1801, as above stated, may, ing arbitrary, so far as relates to the revenue, that without material error, be considered as the reof the eight years, 1802 to 1809, is selected, prin- ceipts of three distinct years, four years and a cipally in reference to the payments to be made halt distant from the other, viz: on account of the public debt-the whole of the For the year ending 30th September, foreign debt being actually due within that term 1792

$6,163,000 of years, and the eight per cent. stock becoming For the year ending 30th March, 1797 8,350,000 redeemable the last year of the period. The best For the year ending Sept. 30, 1801 10,500,000 data on which the estimate may be predicated, The ratio of increase, during the whole period seem to be the actual consumption of imported of nine years, exceeds seventy per cent., whilst articles during former years, and the ratio of in- that of population during the same time, was crease of population as ascertained by the census. hardly more than thirty per cent. The ratio of

With a view to the first object, the statements increase, during the first period of four years and a A to H have been abstracted from the records in half, is near 354 per cent., and, during the last, the Treasury. They exhibit the value or quanti- more than 25 per cent., whilst that of population, ties of imported articles on which duties have for each period, was only at the rate of fourteen been actually paid, for each calendar

per cent. 1790 to 1800, deducting from the gross amount The greater ratio of increase, during the first, imported, each year, the value or quantities of ar- than during the last period of four years and a ticles re-exported during the same year, which half, is owing to the comparison in the first, being were entitled to drawback.

between a period of European peace and a period Those statements do not, however, show cor- of European war; and, in the last, between the rectly, principally for the last years, the actual two periods of European war. annual amount of consumption; because, 1st, ex- The ratio of increase of population being asportations to a considerable

, but not precisely certained, by the census, to be at the rate of 34 ascertained amount, have taken place, under such per cent. for ten years; if the increase of concircumstances as did not entitle the articles ex. sumption shall be supposed to be, hereafter, preported to a drawback; and 2d, the amount of cisely the same as that of population, the annual foreign articles remaining on hand at the close of receipts of the eight years, 1802 to 1809, may be the year 1800, was much greater, in proportion to estimated at nearly fifty per cent. greater than the respective population, than that on hand at those of the years 1790 to 1792, or at a sum of the commencement of the year 1790. Those caus- near $9.250,000, if that period be assumed as the es, which affect, to an inconsiderable degree, the basis on which to predicate the estimate. But if years 1790 and 1792, and but partially those im- the calculation shall be grounded on the revenue mediately succeeding, would, however, render any of the years 1793 10 1798, the annual receipts of deduction drawn from those documents, in rela- the years 1802 to 1809 should be estimated at about tion to the years 1799 and 1800, altogether falla- 304 per cent. greater than those of that period, or cious. The preceding nine years may be divided | at about $10,900,000.

year, from


State of the Finances.

It seems that those two respective sums may year ending on the 30th September, 1801, to $919. reasonably be considered as the two extremes, 719 16. Deducting from this sum $65,000, being which the average annual receipts of the eight the estimated amount of drawbacks paid during ensuing years will not exceed. The first calcula- that year, out of the proceeds of the external reftion, of $9,250,000, appears to be below the prob- enue, on the exportation of domestic distilled spirable result; since, being predicated on the con- its and refined sugar, leaves a net sum of about sumption of the three years preceding the Euro- $854,000, and an increase of near $70,000 beyond pean maritime war, without any other addition the revenue of 1800. than that resulting from the ascertained increase The accounts of the last nine months being yet of population, it rests on the supposition that the but partially rendered, it is not practicable to aspermanent wealth of the United States has not, certain to what class of duties the increase beduring that war, increased in any greater propor- longs, nor particularly to discriminate between tion than their population; and that the whole of the increase of the revenue arising from stamps

. the external commerce acquired during the same and that of the permanent internal revenues. Yet period, must necessarily be lost by the return of it is believed that these, exclusively of the stamp peace amongst foreign nations.

duties, may safely be estimated, for the average of Although, therefore, it be presumable, that the the years 1802–1809, at an annual sum not less receipts of some of those years will, from tempo- than $650,000. rary causes, fall below that sum, it is believed In order, however, to secure that amount, a rethat, taking the whole period of eight years, the vision of the system, so far as it relates to counduties on merchandise and tonnage may safely be try stills, is essentially necessary. Whilst the averaged at a sum not less than $9,500,000. owners of small distilleries, in some parts of the

As a minute investigation of the several rates Union, complain of the operation of a tax raised of duty, now paid by the several species of for- on the capacity of their stills, that same regulaeign merchandise, may perhaps suggest some tion has enabled those whose capitals are larger, advantageous modifications, a table of those rates and local situation more advantageous, especially is annexed to this report.

in the Middle States, to reduce the actual duty on Without any view to an increase of revenue, the quantity of spirits distilled from grain to aboul but in order to guard, as far as possible, against three cents per gallon. But improvements have the value of goods being underrated in the invoi- lately been introduced, which, by accelerating the ces, it would be eligible to lay specific duties on process of distillation, will, according to the estiall such articles now paying duties ad valorem, as mate of the Commissioner of the Revenue, remay be susceptible of that alteration. Amongst duce the duty on stills to about three-fifths of a such, the following have been suggested: fruits cent per gallon of spirits distilled. The effect of and spices, pickled and dried fish, oil

. glue, seve- these, on the revenue, has already been sensibly ral species of drugs, watches, gunpowder, and felt

, in one of the most productive districts of the cigars.

United States; and, unless it shall be counteractLegislative provisions seem necessary, in order ed, either by restricting laws, or by an increase of better to define the restrictions under which the the duty on the capacity of the stills, or by a intercourse with the adjacent British and Spanish change of the subject of taxation, a considerable possessions shall be carried on, in conformity with defalcation must be expected. treaties; under which the articles of the growth Whatever mode may be adopted, it is respector manufacture of the United States may be im- fully submitted whether the revenue may not be ported free of duty, by the way of New Orleans, benefited, and just grounds of complaint removed, from the western parts of the Union, to the ports by a repeal or modification of the clause which of the Atlantic States, and from these to the inte- compels a yearly entry of stills, in the month of rior districts of collection on the Western waters, June, under a penalty of $250, by a permission to and under which

drawbacks shall be allowed on persons who take short licenses, to continue disthe exportation of foreign articles.

tilling beyond the time limited in their licenses, 2. Permanent internal duties.—The annual on paying a proportionate duty; and by reducing statement, prepared by the Commissioner of the into one act all the laws in relation tv duties on Revenue, and which will be completed in a few stills and domestic distilled spirits. days, precludes the necessity of exhibiting here, It will appear, by the same statement M, thal

, all the details pertaining to this branch of reve- whilst the expenses of collection on merchandise

The statement M is an abstract of its and tonnage, which are defrayed out of the rere amount, for the year 1800; during which, the du- nue, do not exceed 4 per cent., those on the permaties on spirits and stills, refined sugars, licenses to není internal duties amount to almost 20 per cent

. retailers, sales at auction, and pleasurable car- This, however, is an inconvenience, which on acriages, produced a net sum of $576,888 80. The count of the greater number of individuals of duties on stamps, which, as, under the existing whom the duties are raised, and of their dispersed laws they will cease after the 4th day of March, situation throughout the whole extent of the Uni1803, are not included amongst the permanent ted States, must, more or less, attach to the system revenues

, amounted, for the same year, to $209,- of internal taxation, so long as the wants of Gok853 32. Both together constitute an item of ernment shall not require any considerable este $786,742 12. The receipts in the Treasury from sion, and the total amount of revenue shall remain all the internal revenues, have amounted, for the inconsiderable.


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