EXPENDITURES.

The expenses of the year 1805, which must be defrayed out
of that revenue, consist of the following items:
1. The annual appropriation of eight millions of dollars, for
the payment of the principal and interest of the public debt;
of which near 3,700,000 dollars will be applicable to the
discharge of the principal, and the residue to the payment
of interest

2. For the Civil Department, and all domestic expenses of a
civil nature, including military pensions, the light-house
and mint establishments, and the expenses of surveying
public lands

3. For expenses incident to the intercourse with foreign nations, including the payment of awards under the 7th article of the British treaty, and the permanent appropriation for Algiers

4. For the Military and Indian Departments, including the permanent appropriation for certain Indian tribes.

$8,000,000

952,000

294,000

954 000

650,000

5. For the Naval Establishment, viz:-annual appropriation charged to the ordinary revenue

Extraordinary expenses of the last expedition against Tripoli, which will be payable in the year 1805, and are chargeable to the Mediterranean Fund

590,000

6. Reserved out of the Mediterranean Fund, for meeting other extraordinary expenses, which may be incurred under the act constituting the fund

Making, altogether,

eleven millions five hundred and forty thousand dollars, and deducted from the revenue of

leaves a surplus of more than two hundred thousand dollars.

MEDITERRANEAN FUND.

1,240,000

100,000

11,540,000

11,750,000

210,000

The sum which may probably be received during the year 1805, on account of that fund, and the payments during that year, which will ultimately be charged to the fund, are included in the preceding estimate of receipts and expenditures: but it is necessary to give a distinct view of the whole amount of revenue and expenses under that head.

The value of merchandise, paying duties ad valorem, which was imported in the year 1802, amounts, after deducting the exportations of the same year, to 31,706,000 dollars. The value of the same description of merchandise, imported in the year 1803, amounts to 34,370,000 dollars. The additional duty of 24 per cent. on that description of imported articles, constitutes the Mediterranean Fund, and, calculated on the average importations of the two years, would have yielded, annually, 826,000 dollars. But several articles, which, in the years 1802 and 1803 paid duties ad valorem, having, in lieu thereof, been charged with specific duties, by an act of last session, are not liable to the additional duty of 24 per cent. Although the value of those articles cannot be precisely ascertained, it is believed that the de

duction, on that account, will not amount to 50,000 dollars, and that the proceeds of the additional duty may be computed at the annual sum of 780,000 dollars; and for the eighteen months commencing on the 1st July, 1804, and ending on the 31st of December, 1805, at 1,170,000 dollars. The expenses authorized under the act constituting the fund, have been predicated on that estimate, and apportioned in the following manner:

1. For the Navy Department, (in addition to the annual appropriation of 650,000 dollars,) viz:

There had been advanced, from the ordinary revenue, prior to the 30th September, 1804,

350,000

A further payment will be made before the 1st January, 1805, of

130,000

590,000

1,070,000

To be paid during the year 1805, on account of this fund, as stated under the 5th item of expenditures for that year

2. Reserved for other extraordinary expenses which may be incurred for the same object, being the 6th item of expenditures for the year 1805,

100,000

$1,170,000

Those duties began to operate on the 1st day of July last; but, as they are payable six, eight, nine, ten, and twelve months after the importation, no part will be paid in the Treasury during the present year; and a sum of only 550,000 dollars is expected to be received in the course of the year 1805. For that sum only, credit has been taken in the general estimate of receipts for that year; whilst a part of the 1,170,000 dollars, chargeable to the fund, has already been expended, and the rest is included in the preceding estimate of expenses for 1805. The difference, amounting to 620,000 dollars, will, at the end of next year, consist of outstanding bonds, payable in 1806. And, if the additional duty should, as well as the extraordinary expense for which it is appropriated, cease at that time, that outstanding balance will, as it is collected, replace in the Treasury the sum advanced from the ordinary revenues, in anticipation of the proceeds of the fund. For it is hoped that the situation of the Treasury will render it unnecessary to recur to the authority given by the act, to borrow on the credit of the fund.

BALANCE IN THE TREASURY.

The greater part of the balance of 5,860,981 dollars and 54 cents, which, on the 30th day of September, 1803, remained in the Treasury, was, in last year's report, considered as applicable to the payments of certain extraordinary demands, therein stated.

As no payment has been made on that account, during last year, besides the first instalment of 888,000 dollars due to Great Britain, nor any other extraordinary expense been discharged than the advance of 350,000 dollars, in anticipation of the Mediterranean fund; the balance remaining in the Treasury on the 30th of September, 1804, still amounted to 4,882,225 dollars and 11 cents. That sum, together with the estimated surplus of revenue for the year 1805, the sum advanced from the ordinary revenue to the Mediterranean fund, and the arrears of direct tax and internal revenues, may still be considered as sufficient to discharge the balance of 1,776,000 dollars, due to Great Britain; the loan of 200,000 dollars, due to Maryland; and two mil

lions of dollars on account of the American claims assumed by the French convention. As the greater part of those demands will be paid in the course of the year 1805, the balance will not, probably, at the end of that year, exceed the sum which it is always expedient to retain in the Treasury.

PUBLIC DEBT.

It appears by the estimate (D.) that the payments on account of the principal of the public debt, have, during the year ending on the 30th of September last, amounted to $3,652,887 15

And during the three years and a half, commencing on the 1st day of April, 1801, and ending on the 30th Sept. 1804, to

$13,576,891 86

During the same period, a new debt of thirteen millions of dollars has been created by the purchase of Louisiana, viz:

Six per cent. stock issued in conformity with the convention, $11,250,000 Amount of American claims assumed by the convention, and for the payment of which authority has been given to obtain

a loan, two millions thereof being already provided for out of the surplus specie in the Treasury,

1,750,000 $13,000,000

Another view of the subject may be given in the following manner: The balance in the Treasury amounted on the

1st day of April, 1801, to

And on the 30th of Sept. 1804, to

Making an increase of

-$1,794,044 85

4,882,225 11

$3,088,180 26

From which deducting the proceeds of the sales of the Bank shares,

- 1,287,600 00

Leaves for the increase arising from the ordinary revenue, $1,800,580 26

From the first day of April, 1801, to the 30th September, 1804, the following debts, which originated prior to that period, have been discharged: 1st. Payments on account of the domestic

and foreign debt, as above stated, 2d. First instalment of the sum payable to Great Britain, "in satisfaction and discharge of the money which the United States might have been liable to pay in pursuance of the provisions of the sixth article of the treaty of 1794,"

$13,576,891 86

888,000 00

And from which, deducting fifteen millions, being the purchase money of Louisiana,

15,000,000 00

Leaves

$1,265,472 12

A difference of more than twelve hundred thousand dollars in favour of the United States.

It may be added, that if the revenue shall, during the ensuing year, prove, as is not improbable, more productive than has been estimated, the surplus will be applied towards the payment of the above-mentioned sum of 1,750,000 dollars, yet unprovided for, on account of the American claims, and will so far diminish the amount of the loan authorized for that object.

From the preceding statements and estimates it results, that the United States have, during the period of three years and a half, ending on the 30th Sept. last, discharged a larger amount of the principal of their old debt, than the whole amount of the new debt, which has been or may be created in consequence of the purchase of Louisiana; and that their existing and growing resources will, during the ensuing year, be sufficient, after defraying the current expenses of the year, and paying more than 3,750,000 dollars, on account of the engagements resulting from the French and British conventions, to discharge a further sum of near three millions and seven hundred thousand dollars, of the principal of the public debt.

All which is respectfully submitted.

ALBERT GALLATIN,
Secretary of the Treasury.

TREASURY DEPARTMENT, November 19th, 1804.

JOSEPH NOURSE, Register.

Total amount of tonnage employed in the foreign trade of the United States

Proportion of foreign tonnage to the whole amount of tonnage employed in the foreign trade of the United States

TREASURY DEPARTMENT, REGISTER'S OFFICE, November 14th, 1804.