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Although the taxes, if early laid, may be brought into operation in the commencement of the year 1814, yet as they cannot be expected to have their full effect during that year, some auxiliary resource will be required. This may be found in the sum of 1,500,000 dollars, which is the excess of the Sinking Fund for the present year, over the demands on that fund, according to the existing engagements of the United States. This sum of 1,500,000 dollars, may be carried to the Sinking Fund, for the year 1814, and will be wanted, in addition to the annual appropriation of 8,000,000 of dollars, to meet the engagements on account of the public debt, which must be fulfilled during that year.
As reliance must be had upon a loan, for the war expenses of the year 1814, the laying of the internal taxes may be considered, with a view to that object, as essentially necessary: in the first place, to facilitate the obtaining of the loan; and secondly, for procuring it on favorable terms.
It is ascertained that the terms of the loan, for the present year, would have been more favorable, if the taxes had been previously laid; and it is obvious enough, that by affording a security for the regular payment of the interest, and the eventual reimbursement of the principal, more stable, and less liable to be weakened or cut off by the natural effects of war, upon external commerce, than a revenue, depending as that of the United States now does, almost wholly upon such external commerce. Capitalists will advance with the greater readiness, and at a lower rate of interest, the funds necessary for the prosecution of the war; public confidence will be ensured, and the means afforded, of preserving the public credit unimpaired: a measure of the utmost importance, in a country like ours, where, from the lightness of the demands made upon the people, during the continuance of peace, the extraordinary expenses of a state of war can be supplied only by a resort to that credit.
The resources of the country are ample, and if the means now proposed, and those heretofore recommended from this Department, are adopted, it is believed they may be fairly and fully brought into action.
All which is respectfully submitted..
W. JONES, Acting Secretary
Receipts and expenditures at the Treasury of the United States, from the 1st of October, 1812, to the 31st of March, 1813.
Cash in the Treasury, subject to warrant,
arrears of Direct Tax,
Treasury Notes, (act of 1812,) 4,752,500 00 do. (act of 1813,) 32,000 00
4,784,500 00 Loan of 11 millions, (1812,) 4,337,487 50 Loan of 16 millions, (1813,) 1,086,737 50
On account of the Civil Department,.
284 45 1,984 96 20,892 51
Cash in the Treasury, subject to warrant, March 31, 1813, $1,855,734 58
First subscription on the 12th and 13th March, 1813,
Second subscription, 25th to 31st March, 1813,
Proposals made on the 5th of April, of which only $10,161,800 could be received,
The United States' loan of 16,000,000 dollars, has been taken up in the following manner and proportions:
$3,956,400 00 1,881,800 00
To which may be added the amount intended to be loaned by the State of Pennsylvania, the proposals for which, not being received in time, could not be admitted,
Being 1,944,200 dollars more than the sum of 16,000,000 authorized by law, and actually borrowed.
That sum of $16,000,000 has been subscribed, and is payable at the following places:
- . Portsmouth,
- 183,600 75,300 67,800
283,500 6,858,400 1,950,800
Whereas, by an act of Congress passed on the eighth day of February, one thousand eight hundred and thirteen, the President of the United States is authorized to borrow, on the credit of the United States, a sum not exceeding sixteen millions of dollars, so however that no engagement or contract shall be entered into, which shall preclude the United States from reimbursing any sum or sums thus borrowed, at any time after the expiration of twelve years from the first day of January, one thousand eight hundred and fourteen. And whereas, by the said act, so much of the funds constituting the annual appropriation of eight millions of dollars, for the payment of the principal and interest of the public debt of the United States, as may be wanted for that purpose, after satisfying the sums necessary for the payment of the interest, and such part of the principal of said debt as the United States are now pledged annually to pay and reimburse, is pledged and appropriated for the payment of the interest, and for the reimbursement of the principal of the stock now to be created, and the faith of the United States is pledged to establish sufficient revenues for making up any deficiency that may hereafter take place in the funds now appropriated for paying the interest and principal as aforesaid. And whereas the President of the United States did, by an act or commission under his hand, dated the seventeenth day of February, one thousand eight hun
dred and thirteen, authorize and empower the Secretary of the Treasury to borrow, on behalf of the United States, a sum not exceeding in the whole sixteen millions of dollars, and to make the necessary contracts for the same, pursuant to the act of Congress above recited:
Now, therefore, the undersigned, Secretary of the Treasury, in pursuance of the act of Congress, and the authority from the President of the United States above-mentioned, doth hereby, on behalf of the United States, contract and engage in manner following, to wit:
1. Books for receiving subscriptions to a loan of sixteen millions of dollars, for the use of the United States, shall be opened on the twelfth day of March next,
At the New Hampshire Union Bank.
At the Roger Williams' Bank.
At the New York State Bank, and
the Farmers' and Mechanics' Bank, and
At the Bank of Baltimore,
the Commercial and Farmers' Bank, and the Union Bank of Maryland.
At the Bank of Washington, and
the Office of the Bank of Columbia. At the Bank of Virginia.
At the State Bank, and
the Planters and Mechanics' Bank.
And at any other incorporated Bank; in any of the above named cities or towns, which shall open books for receiving subscriptions as aforesaid, and give stated notice thereof..
Which books shall continue open for receiving subscriptions during the ordinary hours of transacting business at the said banks, on Friday, the twelfth, and Saturday, the thirteenth day of March next. If more than sixteen millions of dollars in the whole, shall be subscribed, the surplus shall be deducted in proportion to the sums subscribed in each place respectively, by a reduction of the subscriptions exceeding four thousand dollars. But no reduction shall be made, of the subscriptions made by any persons or bodies corporate, holders (at the time of subscribing) of stock issued under the act of March 14, 1812, called "six per cent. stock of 1812;" unless the aggregate of their subscriptions should exceed sixteen millions of dollars; in which case the surplus shall be deducted by a reduction of the proportionally highest subscriptions. If any subscription shall be thus reduced, the amount of such reduction shall be forthwith returned to the subscriber from whom such reduction shall have been made.
2. No subscriptions will be received for a sum less than one hundred dollars, nor for a fractional part of a hundred dollars.
3. For every hundred dollars which may be subscribed, there shall be paid at the time of subscribing, twelve dollars and fifty cents, and a like sum of twelve dollars and fifty cents on the first day of each of the ensuing
months of April, May, June, July, August, September and October, one thousand eight hundred and thirteen, respectively. Each subscriber, at the time of paying any of the above instalments, after the first, may pay all or any number of the subsequent instalments, and will be entitled to receive interest, at the rate of six per centum, per annum on the amount thus paid, from the time of actual payment.
4. On the failure of payment of any instalment of the sums subscribed, according to the tenor of the third article, the next preceding instalment of twelve dollars and fifty cents, which shall have been paid for every hundred dollars subscribed, shall be forfeited to the United States.
5. Each subsequent instalment must be paid at the same bank at which the original subscription was made, and where the first instalment was paid. 6. The cashiers of the respective banks where subscriptions are received,. shall, within twenty days after the time of subscribing, give certificates stating the sums subscribed and payment made, and on which the payments of the subsequent instalments, when made, shall be respectively endorsed; which certificates shall be assignable by endorsement and delivery of the parties in whose favor they may be issued, until the completion of the payments required by the tenor of the third article.
7. After the completion of the payments aforesaid, the proprietors of the certificates of the cashiers, on which such payments have been completed, on surrendering the same at the loan office of the State in which the subscription and payments shall have been made, shall be entitled to receive from the Commissioner of Loans, certificates of funded capital stock for the amount thus subscribed and paid, bearing an interest of six per centum per annum from the time when the said instalments shall have been paid respectively, and payable quarter yearly at the several loan offices, or at the Treasury of the United States, where the same may stand credited:- And shall, moreover, receive from the Commissioner of Loans, a certificate entitling such proprietor to an annuity or annual sum, payable quarter yearly, for thirteen years, commencing on the first day of January, one thousand eight hundred and thirteen, of one dollar on every hundred dollars thus subscribed and paid; which certificates of annuity shall constitute a separate and distinct stock, and may be sold, assigned, and transferred to and from the books of the Treasury, or of the several loan offices, separately and distinctly from the aforesaid funded capital six per cent. stock. And the said funded capital stock, and the said annuities shall be transferable by their respective proprietors in person, or by their attornies duly constituted, in the same manner as the present funded debt of the United States, and in pursuance of the rules which have been, or which may be established, relative to the transfer of the said debt.
8. After the payment of the fifth instalment, such of the proprietors of the certificates of the cashiers, of two hundred dollars and upwards, as may then be desirous of funding the same, may, on presenting them at the loan office of the State in which the subscription and payments shall have been made, receive from the Commissioner of Loans, certificates of funded capital six per cent. stock, for the amount of the four first instalments, or one moiety of the sum expressed in the certificates of the cashiers; and also certificates for one moiety of the thirteen years' annuity of one dollar on the hundred dollars subscribed. But no certificate of funded capital six per cent. stock, including a fractional part of a hundred dollars, or certificate of annuity including a fractional part of a dollar, will be issued.