D.

REPORT ON THE FINANCES.

JUNE, 1809.

In obedience to the directions of the act supplementary to the act, entitled "An act to establish the Treasury Department," the Secretary of the Treasury respectfully submits the following report:

The nett revenue arising from duties on merchandise and tonnage, which accrued during the year 1807, amounted, as appeared by the last annual statement, to $16,060,000

A correct statement of that revenue for the year 1808, cannot be prepared at this time, but may be estimated, as will appear by the estimate (A.) to about 10,270,000

The revenue arising from the same sources, which accrued during the first quarter of this year, did not much exceed one million of dollars; and although considerable importations may be expected from Great Britain and the West Indies during the last six months of this year, yet, considering that there will be no arrivals from China and the East Indies, and the situation of the commercial intercourse of the United States with the rest of the world, it is not probable that the revenue accruing during the year 1809 will exceed that of the year 1808.

The specie in the Treasury on the 1st October, 1808,
amounted to
And the receipts during the last three months of that year,
as appears by the statement (B.) to

-$13,846,717 52

3,586,316 99

$ 17,433,034 51

The disbursements, during the same period, have amounted, including 6,105,000 dollars paid in reimbursement of the principal of the public debt,

to

Leaving a balance in the Treasury, on the 1st January, 1809, of

The cash in the hands of Collectors and Receivers, and
the outstanding revenue bonds, amounted, on the 1st Jan-
uary, 1809, to

From which, deducting for the expenses of collection and
for the drawbacks payable during the year 1809
Leaves, for the probable receipts of the year 1809, exclu-
sively of the inconsiderable sums which may be received

9,941,694 72

$ 17,433,034 51

9,880,000

3,000,000

on account of the revenue accruing during that year, a sum of

Making, together with the balance in the Treasury on the 1st of January, 1809, of

An aggregate of sixteen millions eight hundred and twentyone thousand dollars, applicable to the expenditures of this year.

6,880,000

9,941,000

$ 16,821,000

The expenses of the year 1809, are, in conformity with the existing appropriations, estimated at fourteen millions five hundred thousand dollars, consisting of the following items:

Civil list, including the expenses of this session of Congress, miscellaneous expenses, and foreign intercourse

Military and Indian Departments, viz:

Appropriation for the Army and Indian De

1,342,000

Naval Department, this year's appropriation

Public debt, (1,547,000 dollars of the appropriation of 8,000,000 of dollars for the year 1809, having been paid in advance in the year 1808, in order to effect the reimbursement of the whole of the 8 per cent. stock,)

3,790,000

2,915,000

6,453,000 $14,500,000

It must, however, be observed, that the estimate of the sums payable in the course of this year, on account of drawbacks, is conjectural, and that the exportations, particularly of colonial produce, would, if the restrictions laid by the continental powers of Europe on neutral commerce were removed, produce a much greater defalcation in the nett receipts into the Treasury, than the sum assumed in the preceding estimate. In order to guard against any inconvenience arising from that contingency, and for the purpose of keeping always a moderate sum in the Treasury, it may be necessary to borrow a sum equal to the amount of the principal of public debt which will be reimbursed during the year, and which will exceed three millions of dollars.

By the 10th and 19th sections of the act making further provision for the support of public credit, and for the redemption of the public debt, passed on the 3d of March, 1795, the Commissioners of the Sinking Fund are authorized, from time to time, to borrow, and the bank of the United States to lend, sums equal to the reimbursement of the public debt. But some doubts having arisen whether the powers vested by those two sections are applicable to the new six per cent. stocks, issued by virtue of the act of February 11th, 1807, in exchange of the old six per cent. deferred, and three per cent. stocks, it is desirable that the authority should be expressly extended, by law, to that case; and no other provision seems necessary for the public service of this year.

It would be premature to attempt, at this time, an estimate of the receipts and expenditures of the year 1810. It is sufficient to observe, that, although

the receipts may exceed those of the present year, it is highly improbable that they should be equal to the expenditures of that year, which, unless the military and naval establishments should be reduced, will amount to sixteen millions of dollars. But it is believed that the revenue will, after that year, be adequate to discharge the annual expenses.

All which is respectfully submitted.

TREASURY DEPARTMENT, June 1st, 1809.

GAL

ALBERT GALLATIN: