[1798 Nov. 16] [Secy War cat.] [Vol. II No. 69] [V. II [undecipherable]] The Secy of the Treasury in pursuance of the request contained in the letter from the Secy of War dated the 14^th inst and with reference to the objects mentioned in the document accompanying the same, submits the following view of the Finances of the United States Of the Revenue The duties on Imports & Tonnage have produced in the Treasury the following Sums During the year 1795 .... Drs 5.508.961.26 D^o .... 1796 .... 6.567.987.94 D^o .... 1797 .... 7.549.649.65 During the twelve months } preceding the 1^st Oct 1798} 7.405.420.86 It is presumed that notwithstanding the depredations on our Commerce, the before mentioned branch of Revenue may be safely estimated at ..... Dollars 7.000.000 The duties on Domestic distilled Spirits, Stills, that at Auction, Licences for selling foreign Spirits and Wines, by Retail, Refined Sugar and Carriages have produced during the periods above mentioned the following Sums During the year 1795 .... Drs 337.255.36 D^o .... 1796 .... 475.289.60 D^o .... 1797 .... 575.491.45. During the twelve months preceding } the 1^st of October 1798 } 585.879.67 It is estimated that including the product of the Stamp duties which begun to be collected on the first of July 1798 and of which, no considerable sum had reached the Treasury by the first of October the before mentioned duties will produce annually the sum of .... $800.000. Revenue from the Post Office .... $50.000 Fees on Letters patent .... 1.400. Dividends on Capital Stock of the Bank of the United States belonging to the United States calculated on 2.220 shares at 32 dollars per share 71.040. Proceeds of that part of the Sinking Fund which consists of Interest on Stock purchased & redeemed ...... 89.457. Total annual value of the Receipts of the Revenue above mentioned ... $8.011.897.84 Of the [strikethrough: Revenue] Expenditure. The Interest of the Foreign debt is secured by a permanent appropriation and certain Duties on Imports imposed by an act passed on the 3^d of March 1797 are pledged for the payment of the principal of the said Debt — The Instalments of Principal fall due in unequal sums annually from the present time till the year 1809 when the whole debt will be extinguished — The interests and certain reimbursements of the Domestic funded Debts are also secured by permanent appropriations — In the year 1801 as new charge for the Interest and extinguishing annuity of the deferred Debt will fall upon the Revenue amounting to Dollars 1.146.370 and by the act of Augt 4^th 1790 the sum of six hundred thousand Dollars of the proceeds of the Duties on Imports and Tonnage is annually reserved for defraying the expenses of Government. But notwithstanding the permanent charges upon the Revenue, will, at no distant period very considerably increase, yet as they may be provided for by additional taxes or duties it is conceived to be proper to state the expenditure according to the best estimate which can now be formed for the ensuing year. This expenditure exclusive of the Military and Naval establishments will be nearly as follows — For the Civil List, supposing 16 Persons of Congress to continue for the ordinary Term .... $460.000. Annuities and grants. 2.500. Mint establishment. 12.000. Diplomatic Expenses 100.000. Military Pensions 114.000. Light Houses, exclusive of the Expences of new erections 40.000. Treaties with Foreign Powers 100.000. Indian Expenses 50.000. For miscellaneous expenses which experience had proved, will be incurred such as contingent expenses of Government, grants by Congress, charges for the protection of American Seamen &c it will not be safe to calculate on the expenditure of less than 200.000 The appropriations for the Debt of the United States are as follow — For the Foreign Debt in 1799, calculating on a rate of Exchange at 40 cents per Guilder. 676.801. For the Domestic Debt .... 3.063.120.67 For Interest on temporary loans — 216.400. Making on the whole a permanent expenditure upon the Scale of existing Establishments independent of the Military and Naval establishments of ..... 5.004.021.67 Which sum being deducted from the amount of Revenue before stated, will have to be applied to the support of Military and Naval Establishments or as a fund for the payment of Interest and reimbursement of new loans the annual sum of .... $2.977.076.17 The foregoing is stated as the [underline: permanent Revenue] and [underline: permanent Expenditure] of the United States, according to existing establishments independent of the Military and Naval establishments — This however is not strictly the case — Included in the sum stated as the Revenue from Imports and Tonnage is a product of a duty of eight cents on each Bushel of Imported salt, which has been granted only for two years, after the 8^th day of July 1797, and from thence to the end of the Session of Congress, which may be holden next therafter, this only is estimated at two hundred and forty thousand Dollars. The Duties on Salt at Auction, Refined Sugar, Licences to retail Foreign Distilled Spirits and Wines, and on Carriages, will moreover expire in the year 1801 — These duties are now estimated at One hundred and ninety five Thousand Dollars. If therefore these duties should not be continued the Permanent Revenue may possibly suffer a defaleation which is now estimated at four hundred and thirty five thousand Dollars against this defaleation an equivalent sum to arise from the progress of National Wealth and consumption may however, it is presumed be safely expected. In order to possess a full view of the resources of the Treasury the following provisions made by acts passed the last session of Congress ought however to be considered. 1^st the product of a direct tax of five millions of Dollars granted by an act passed on the 9^th of July with the power of anticipating the amount thereof by a temporary loan granted by an act passed on the 10^th of July 1798 2^nd, the sum which may be obtained in consequence of the act passed on the 16^th July 1798 authorising a permanent loan of Five Millions of Dollars. As great a progress has been made in the preliminary arrangements for collecting the direct Tax, as was to have been expected, and nothing had yet occurred to render it improbable that a considerable part of the Tax at least will be received into the Treasury in the course of the ensuing year. Its moreover certain that Monies can be obtained on Loan, though on terms less favourable than they have been heretofore effected — it is believed however that the increased expense expected to attend new loans ought not to be attributed to a distrust of Public Credit but solely to the high value of money at the present time. But to the resources expected from the direct tax and from loans, there ought to be opposed certain expenditures which will be required to fulfil the stipulations of the Treaty with Great Britain, and for objects provided for by appropriations which remain unsatisfied; these are not susceptible of any precise estimate, though it is certain that the amount will be considerable. — To confirm & illustrate, the several facts before stated, the following papers are herewith annexed. 1^st A Report presented by the Committee of Ways & Means to the House of Representatives on the 1^st of May 1798 accompanied with Documents transmitted from the Treasury Department, on the 27^th of April last. 2^nd an account of the receipts and expenditures of the United States for one year prior to the first of October and a statement of certain appropriations which remained unsatisfied on the 14^th of November 1798. Treasury Department Nov 16^th 1798 Oliver Wolcott Secy of the Treasy