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AMERICAN STATE PAPERS.

DOCUMENTS,

LEGISLATIVE

AJTD

EXECUTIVE,

OF THE

C O N G R E S S OF T H E U N I T E D

STATES,

FROM THE FIRST SESSION OF THE FIRST TO THE THIRD SESSION OF THE
THIRTEENTH CONGRESS, INCLUSIVE:

COMMENCING MARCH 3, 1789, AND ENDING MARCH 3, ISISr

SELECTED AND E D I T E D , UNDER THE AUTHORITY OF CONGRESS,
BY

W A L T E R

Secretary of the Senate,

LOWRIE,

AND
M A T T H E W

ST, C L A I R C L A R K E ,

Clerk of the House of Representatives.

V O L M E

V.

W A S H I N G T O N :
PUBLISHED BY GALES AND SEATON.
1832.

FINANCE.

144-

[1792.

But there is no truth which may be more firmly relied upon, than that the interests of the revenue are promoted
by whatever promotes an increase of national industry and wealth.
In proportion to the degree of these9 is the capacity of every country to contribute to the public treasury^ and
where the capacity to pay is increased, or even is not decreased, the only consequence of measures which diminish
any particular resource, is a change of the object If, by encouraging the manufacture of an article at home, the
revenue which has been wont to accrue from its importation should be lessened, an indemnification can easily be
found, either out of the manufacture itself, or from some other object which may be deemed more convenient.
The measures, however, which have been submitted, taken aggregately, will, for a long time to come, rather
augment than decrease the public revenue.
There is little room to hope, that the progress of manufactures will so equally keep pace with the progress of
of population, as to prevent even a gradual augmentation of the product of the duties on imported articles.
As, neverthelessj an abolition in some instances, and a reduction in others, of duties which have been pledged
for the public debt, is proposed, it is essential that it should be accompanied with a competent substitute. In order
to this, it is requisite that all the additional duties which shall belaid, be appropriated, in thefirstinstance, to replace
all defalcations which may proceed from any such abolition or diminution. It is evident, at first glance, that they
will not only be adequate to this? but will yield a considerable surplus. This surplus will serve—
First To constitute afondlor paying the bounties which shall have been decreed*
Secondly. To constitute a fund for the operations of a board to be established, for promoting arts, agriculture,
manufactures, and commerce. Of this institution, different intimations have been given in the course of this report.
An outline of a plan for it shall now be submitted.
Let a certain annual sum be set apart, and placed under the management of commissioners, not less than three,
to consist of certain officers of the Government and their successors in office.
Let these commissioners be empowered to apply the fund confided to them, to defray the expenses of the
emigration of artists, and manufacturers in particular branches of extraordinary importance^ td induce the prosecution and introduction of useful discoveries, inventions, and improvements, by proportionate rewards, judiciously
held out and. applied; to encourage by premiums, both honorable and lucrative, the exertions of individuals and of
classes, in relation to the several objects they are charged with promoting; and to afford such other aids to those
objects as may be generally designated by law.
The commissioners to render to the Legislature an annual account of their transactions and disbursements; and
all such sums as shall not have not been applied to the purposes of their trust, at the end of every three years, to
revert to the treasury. It may, also, be enjoined upon them not to draw out the money, but for the purpose of some
specific disbursement
It may, moreover, be of use to authorize them to receive voluntary contributions, making it their duty to apply
them to the particular objects for which they may have been made, if any shall have been designated by the donors.
There is reason to believe that the progress of particular manufactures has been much retarded by the want of
skilful workmen. And it often happens, that the capitals employed are not equal to the purposes of brinrfngfrom
abroad workmen of a superior kind. Here, in cases worthy of it, the auxiliary agency of Government would,, in all
probability, be useful. There are also valuable workmen in every branch, who are prevented from emigrating,
solely, by the want of means. Occasional aids to such persons, properly administered, might be a source of valuable
acquisitions to the country.
The propriety of stimulating by rewards the invention and introduction of useful improvements, is admitted
without difficulty. But the success of attempts in this way, must evidently depend much on the manner of conducting them. It is probable that the placing ot the dispensation of those rewards under some proper discretionary
direction, where they may be accompanied by collateral expedients, will serve to give them the surest efficacy. It
seems impracticable to apportion, by general rules, specific compensations for discoveries of unknown and disproportionate utility.
The great use which may be made of a fund of this nature, to procure and import foreign improvements, is
particularly obvious. Among these, the article of machines would form a most important iteiti.
The operation and utility of premiums have been averted to, together with the advantages which have resulted
from their dispensation, under the direction of certain public and private societies. Of this, some experience has
been had, in the instance of the Pennsylvania Society tor the promotion of manufactures and useful arts; but the
funds of that association have been too contracted to produce more than a very small portion of the good to which
the principles of it would have led. It may confidently be affirmed, that there is scarcely any thing which has been
devised, better calculated to excite a general spirit of improvement, than the institutions of this nature. They are
truly invaluable.
In countries where there is great private wealth, much may be effected by the voluntary contributions of patriotic
individuals; but in a community situated like that of the United States* the public purse must supply the deficiency
of private resource. In what can it be so useful, as in prompting and improving the efforts of industry?
All which is humbly submitted.
ALEXANDER H A M I L T O N , Secretary of the Treasury.

2d CONGRESS. ]

No.

32.

[JSTSESSIOX.

E S T I M A T E S OF R E C E I P T S A N D E X P E N D I T U R E S F O R 1791-2.
COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, JANUARY 23, 1792,

The Secretary of the Treasury, in obedience to the order of the House of Representatives of the 19th instant, respectfully makes the following report:
At the close of the year 1790, there was a considerable surplus of revenue beyond the objects of expenditure,
which had required a provision to that period; which surplus, by an act of the 12th of August in that year, was appropriated to the reduction of the public debt.
The statement A, herewith submitted, will shew^ in one view, all the sums, which, according to the establishments heretofore made, and corresponding appropriations, have required, and will require, to be defrayed, from the
beginning of the year 1791, to the end of the year 1792, amounting together, to seven millions and eighty two thousand one hundred and ninety seven dollars and seventy four cents.
The statements will also shew, in one view, the nett product of all the public revenues, for the same period,
according to the best calculation and estimate^which can now be formed of it, amounting to seven millions and
twenty-nine thousand seven hundred and fifty-live dollars and twenty-six cents.
The statement C exhibits a summary ot the total annual expenditure of the United States, in conformity to
existing establishments, amounting to three millions six hundred and eighty-eight thousand and forty-three dollars,
fifty cents.

1795.]

E S T I M A T E S OF R E C E I P T S A N D E X P E N D I T U R E S F O R 1791-2.

145

The statement B includes a view of the probable product, during the year 1792, of the existing revenues of the
United States, amounting to three millions seven hundred thousand dollars.
From these statements will result substantially, the information which is, desired by the House of Representatives, as far as it is now in the powrer of the Secretary to give it.
One or two matters, however,^ may be proper to be added, with a view to greater accuracy.
There are certain instances, in which the estimates of appropriations have exceeded,, and will exceed, the sums
actually expended. Hence the apparent excess of the expenditure, as exhibited in the statement A , beyond the
product of the revenue, as shewn m the statement B, will, probably, not be found real. But the amount of these
surplusses or over-estimates cannot be now ascertained, ana it is not likely to be very considerable: and because,
also, if it should do more than counterbalance the excess alluded to, it will be safest to set oft* the surplus against
those contingent demands, which, from time to time, occur.
No deduction has been made from the annual interest on account of the debt purchased. This has proceeded
from a supposition that it will be deemed expedient by the Legislature, to appropriate inviolably the interest of any*
part of the debt which shall be, at any time, extinguished, towards the extinction of the remainder. This point will
be more particularly submitted in a report on the subject of the'public debt.
All which is humbly submitted.
ALEXANDER H A M I L T O N , Secretary of the Treasury.
TREASURY DEPARTMENT, January 23, 1792.
A.
Statement of expenditures made, and to be made, pursuant to appropriations heretofore made, in conformity to the
existing establishments of the United States, from the beginning of the year 1791, to the end of the year 17*92, viz:
Amount of moneys appropriated by an act of the 11th ofFebruary, 1791, making appropriations for the
support of Government during the year 1791, and for other purposes, 1
$740,232 60
Sum appropriated by an act of the 3d March, 1791, towards ^eftectmga recognition of the treaty with
the Emperor of Morocco,
20,000 00
v
Sum appropriated by an act of the same date, for raising another regiment, and making a further provision for the protection of the frontiers,
312,686 20
Amount of moneys appropriated by an act of the 23d of December last past, making provision,
among other things, for the support of Government for the year 1792,
159,222 81
Sums to be advanced, pursuant to the act malting provision for defraying the intercourse between the
United States and foreign nations,
40,000 00
$2,172,141 61
Amount of one year's interest on the public debt, foreign and domestic, during the year 1791,
2,060,861 40
Amount of one year's interest on the public debt, foreign-and domestic, (including that of the respective States assumed) during the year 1792,
2,849,194 73
Total expenditures to the end of the year 1792,
T R E A S U R Y DEPARTMENT,

January^ 1792.

Sr, 082,197 74

ALEXANDER H A M I L T O N , Secretary of the Treasury.

B.

Estimate of the nett product of the public revenues during the years 1791 and 1792.
V
*

IMPORT DUTIES FOR 1791*

Quarter ending the 31st March,
Quarter ending the 30th June,
> (a)
Quarter ending the 31st September, J
Quarter ending the 31st December, (b)

r $314,881 11
< 1,345,303 49
C. 919,570 66
600,000 00

Total nett product of imports for 1791,
Duties on home-made spirits, from the 1st of July to the last of December, (c)

$3,179,755 26
150,000 00

Total nett revenue, 1791,
Duties on imports for the year 1792, estimated at (d)
Duties on home-made spiiits for the same year, estimated at (e)
Total of nett revenue, for the years 1791 and 1792,

83,329,755 26
3,300,000 00
400,000 00
3,700,000 00
87,029,755 26

NOTES TO STATEMENT B .

(a) The produce of these three quarters may be considered as ascertained! Though returns have not been received froni all the ports, for the entire period, yet, so many have been received (including the principal ports) as
to have admitted of a calculation with regard to the rest, not liable to material error.
The produce for the year 1790 has served as a guide in respect to the ports from which returns have not been
received.
(b) The sum here stated, is altogether upon estimate^ the time which has elapsed since the end of the quarter,
not admitting of proper documents. It exceeds the produce of the same quarter, for the preceding year, fifty-five
thousand seven hundred and seventy-three dollars and nineteen cents. If the ratio of increase of any preceding
quarter, during the year 1791, had been applied to this quarter, the sum would have been considerably greater^ but
it is believed that this would not furnish a just rule. It is understood that the importations for the last quarter of
1790 were much increased, to avoid the additional duties, which were to take place on the first day of the year
1791$ and although the additional duty on distilled spirits might, at first view, be expected to add to the product of
the quarter in question^ yet it is far from certain that this was the effect of i t Extraordinary exertions were made
to import distilled spirits, prior to July, when the additional duty took effect, which may be supposed to have lessened the quantity afterwards, so as to leave it a question whether this article was more or less productive in that
quarter, than in the same quarter of the former year. Making allowance for these circumstances, it does not appear
probable that the last quarter of 1791 will exceed the last quarter of 1790, in so great a proportion as any of the
preceding corresponding quarters.
(c) This sum is materially short of the originally estimated product^ but, from the returns hitherto received, it
does not appear likely to be greater. This is owing, partly, to a decreased distillation of spirits from foreign materials, in consequence of a sudden rise in the price of molasses, and partly to the obstacles which have retarded the
complete execution of the law.

[1792.

FINANCE.

146-

(d) The sum here estimated, cannot, in the nature of the tiling, be accurate^ it includes a compromise of opposite
considerations. First, it contemplates an additional sum for the additional duty on imported spirits, which will be
fully operative during the present year. Secondly, it contemplates the possibility, that the disturbances m Hispaniola may tend to diminish the supply of several articles, which are objects of considerable duties^ and may proportionably diminish the revenue; hence, about one-third of the probable increase of the duties on spirits is added to the
produce of the year 1791, and the aggregate is taken as the produce of the year 1792, abating two thirds of that increase as an equivalent for the other deficiencies.
(e) The same disturbances in Hispaniola may be expected to diminish the product of the duties on home-made
spirits, by Considerably reducing the supply of molasses; which, added to the obstacles already alluded to (and
which it will require yet some time completely to surmount) cannot fail to render the real product of these duties,
in the course of the present year, materially less than the estimated product; accordingly, an abatement of about
one third is made in the present estimate.
TREASURY DEPARTMENT, January 23, 1792.
A L E X A N D E R H A M I L T O N , Secretary of the Treasury.
C.
Estimate of Annual Expenditure, .on the ground of existing establishments, viz:
For the support of the civil establishments of the Government, including 40,000, dollars for foreign
affairs,

-

-

.

-

"

Stated expenditure of the War Department, including 25,000 dollars for Indian affairs,
Pensions to invalids,
-

$368,653 56

382,731 61
87,463 60

$838,848 77

Interest on the public debt, foreign and domestic, including the amount of the State debts assumed,
Total annual expenditure,

2,849,194 73
$3,688,043,50

TREASURY DEPARTMENT,

January 23,

1792.

^ 7
_
A L E X A N D E R H A M I L T O N , Secretary of the Treasury.

2d CQSGRESS.]

NO.

33.

[ 1 s t SESSION-

LOANS.
COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, FEBRUARY 7, 1792.
TREASURY DEPARTMENT,

January 23d,

1792.

Pursuant to'the order of the House of Representatives of the first of November 1791, directing the Secretary of the
Treasury " t o report to the House the amount of the sitbscriptions to the loans proposed by the act making
provision for the public debt, as well in the debts of the respective States', as in the domestic debt of the United
States, and of the parts which remain unsubscribed, together with such measures as are, in his opinion, expedient
to be taken on the subject," the said Secretary respectfully submits the following report:
1. The whole amount of the domestic debt of the United States, principal and interest, which has
been subscribed to the loan proposed concerning that debt, by the act, entitled66 An act making
provision for the debt of the United States," according to the statement herewith transmitted, marked
A , and subject to the observations accompanying that statement, is,
$31,797,481 22
Which, pursuant to the terms of that act, has been converted into stock bearing an immediate interest of six per cent, per annum,
14,177,450 43
Stock bearing the like interest from the first of January, 1801,
7,088,727 79
Stock bearing an immediate interest of three per cent, per annum,
10,531,303 00
Making, together,

831,797,481, 22

Of whicli there stands to the credit of the trustees of the sinking fund, in consequence of purchases of the public debt made under their direction, the sum of
The unsubscribed residue of the said debt, according to the statements herewith transmitted,
marked Band C, and subject to the observations accompanying the statement C, appears to amount
TO

-

Consisting of registered debt, principal and interest,
Unsubscribed stock on the^ books of the commissioners of loans for New Jersey, Pennsylvania,
and Maryland, principal and interest,
' •
. 1
Credits on the books of the treasury, for which no certificates have been issued, principal and

interest,

-

-

-

-

-

-

Outstanding or floating evidences of debt, estimated, per statement C, at
Making, together,

-

81,131,364 76
810,616,604 65

6,795,815, 26
15,674 62
107,648 63

3,697,466 14
810,616,604 65

Concern ing which, some further arrangement is necessary.
The greatest part of the registered debt, hitherto unsubscribed, is owned by citizens of foreign countlies, most, if
not all of whom appear now disposed to embrace the terms held out by the act above mentioned; extensive orders
having been received from those creditors, to subscribe to the loan, after the time for receiving subscriptions had
elapsed.
..
A considerable part of the outstanding or floating debt consists of loan office certificates, issued between the
first of September, 1777, and the first of March, 1778, bearing interest on the nominal sum. Many of the holders
of this species of debt have come in upon the terms of this act, but others have, hitherto, declined it; alleging that the
special nature of their contract gives a peculiarity to their case, and renders the commutation proposed not so fair an
equivalent to them, as in other instances. They also complain, that the act has had, towards them, a compulsory
aspect, by refusing the temporary payment of interest, unless they should exchange their old for new certificates,
essentially varying the nature of their contract.

LOANS.

147

A resolution of Congress of the tenth of September, 1777, stipulates, in favor of this class of creditors, interest
upon the nominal, instead of the real principal of their debt, vntil tha{principal be discharged. This, certainly
renders their contract of a nature more beneficial than that of other creditors; but they are, at the same time, liable
to be divested of the extra-benefit it gives them by a payment of their specie, dues; and it may be observed, that
they have actually enjoyed, and by accepting the terms offered to them, were enabled to realize, advantages superior
to other creditors. They have been paid interest by bills on France from the tenth of September, 1777, to the first
of March, 1782, while oilier creditors received their interest in depreciated bills of the old einissons; and the terms
of the loan proposed put it in their power to realize the benefit of interest, on the nominal amount of their respective
debts, at rates from 6T-0°7 nearly to
per cent, on their real or specie capital down to the last of December, 1790,
It does not, therefore, appear to have been an unreasonable expectation, that they, as readily as any other description of public creditors, would have acquiesced in a measure calculated for the accommodation of the Government,
under circumstances in respect to which, it has been demonstrated, by subsequent events, that the accommodation
desired, was consistent with the best interest of the public creditors. A large proportion of the parties interested
have, indeed, viewed the matter in this Hglit, and have^ embraced the proposition. It is probable that the progress
of things will satisfy the remainder that it is equally their interest to concur, if a further opportunity be afforded.
But it is, nevertheless, for themselves only to judge, how far the equivalent proposed is, in their case, a reasonable
and fair one; how far any circumstances in their claim may suggest reasons for moderation on their part; or how far
any other motives, public or private, ought to induce an acceptance. And the principles of good faith require, that
their election should be free.
On this ground, the complaint which regards the withholding of a temporary payment of interest* except on the
condition of surrender of the old certificates for new ones, importing contract substantially different, appears,
to the Secretary, not destitute of foundation. He presumes that the operation of that provision, in the particular
case, was not adverted to; or, that an exception would have been introduced, as most consonant with the general
spirit and design ot the act. Accordingly, the further measure^ which wilLbe submitted, will contemplate a method
of obviating the objection in question. #
From the consideration that an extension of tlie time for receiving stipulations, upon the terms of the act making
provision for the debt of the United States, is desired by a large proportion of the non-subscribing creditors j ana
from the further consideration, that sufficient experience has not, yet, been had of the productiveness of a considerable branch of the revenues which have been established, ta afford the light necessary to a final arrangement it is,
in the judgment of the Secretary, advisable to renew the proposition for a loanm the domestic debt, on the same
terms with the one which has been closed* and to allow time for receiving subscriptions to it, until the last day of
September next, inclusively; making provision for a temporary payment of interest, to such who may not think fit
to subscribe, for the year 1792, of the like nature with that which was made in the same case for the year 1791,
except, as to the holders of loan, office certificates, issued between the first of September, 1777, and the first of
March, 1778; in respect to whom^ it is submitted as proper to dispense .with the obligation of exchanging their old
certificates for new, as the condition of their receiving interest in capacity of non-subscribers; and to allow them,
without such exchange, to receive the same interest, both for the year 1791 ^ and 1792, as if they had subscribed to
thefirstloan. It will not be materially difficult so to regulate the operation at the treasury, as to avoid, in the
particular case, that danger of imposition by counterfeits, which was the motive to the general provision for an
exchange of certificates.
2. The amount of the subscriptions in the debtsof the respective States, within the limits of the sum assumed
in each, appears, by the statement marked D, to be $17,072,334 39, subject to the observations accompanying that
statement. Consequently the difference between the aggregate of the sums subscribed, and the aggregate of the
sums assumed, is$l,427,665 61; This difference is to be attributed to several causes—the principal of which are
the following: First, that the sums assumed, in respect to certain States, exceeded the actual amount of their existing debts. Second, that, in various instances, apart of the existing debt was in a form which excludecLit from
being received, without contravening particular provisions of the law; as in the case of certificates issued after the
first day of January, 1790, in lieu of certificates which had been issued prior to that period, winch was reported upon
by the Secretary on the twenty fifth clay of February last Third, ignorance of, or inattention to, the limitation of
time for receiving subscriptions. It appears that a number of persons lost the opportunity of subscribing from the
one or the other of these causes.
A strong desire that a further opportunity may be afforded for subscriptions in the debts of the States, has
been manifested by the individuals interested. And the States of Rhode Island and New Hampshire have, by
the public acts reterred to the Secretary, indicated a similar desire. The affording of such further opportunity, may
either be restricted within die limit, as to amount, which is contemplated by the act itself, or may receive an extension which will embrace the residuary debtsof the States.
The first may be considered as nothing more than giving full effect;to a measure already adopted.
The last appears to have in its favor all the leading inducements to what has been already done. The embarrassments which might arise from conflicting systems offinanceare not entirely obviated. The efficacious command of
the national resources for national exigencies, is not unequivocally .secured. The equalizing of the condition of the
citizens of every State, and exonerating those of the States most indebted, from partial burthens which would press
upon them, in consequence of exertions in a common cause, is not completely fulfilled, until the entire debt of every
State, contracted in relation to the war, is embraced in one general and comprehensive plan. The inconvenience to
the United States of disburdening the States, which are still incumbered with considerable debts, would beamo proportion to the inconvenience which they would feel, if left to struggle with those debts, -unaided.
More general contentment, therefore, in the public mind,-may be expected to attend such an exoneration, than
the reverse; in proportion as the experience of actual inconvenience would be greater, though only applicable to parts,
in the one, than in the other case.
With regard to, States, parts only of the debtsof which have been assumed, aad in proportions short of those which
have prevailed, in favor of other States, and short, also, of what would have resulted from a due apportionment of
the entire sum assumed; the claim to a further assumption is founded on considerations of equal justice, as relative to
the measure itself, considered in a separate and independent light
But there is a further reason of material weight for an immediate general assumption. Moneyed men, as well foreigners as citizens, through the expectation of an eventual assumption, or that, in some shape or other, a substantial
provision will be made for the unassumed residue of the State debts, will be induced to speculate in the purchase of
them. In proportion as the event is unsettled, or uncertain, the price of the article will be low, and the present proprietors will be under disadvantage in the sale. ^ The loss to them in favor of the purchasers is to be regarded as an
evil; and as far as it is connected with a tmnsfer to foreigners, at an undervalue, it will be a national evil. By
whatsoever authority an ultimate provision may be made, there will be'an absolute loss to the community, equal to
the total amount of such undervalue.
It may appear an objection to the measure, thatitwill require an establishment of additional funds by the Government of the United States. But this does not seem to be a neccessary consequence. The probability is, that, without a supplementary assumption, an equal or very nearly equal augmentation of funds mil be requisite to provide
for greater balances in favor of certain States; which would beproportionably diminished by such assumption* The
destination, not the quantum of the fund, will, therefore, be the chief distinction between the two cases.
It; may, also, appear an objection to a total assumption, that the magnitude of the object is not ascertained with
precision. It is not certainly known, what is the sum due in each State; nor has it been possible to acquire the
information, owing to different causes. But, though precise data are deficient, there are materials which will serve
as guides^ From the returns received at the treasury, assisted by information in other ways, it may be stated, without
danger of material error, that the remaining debts of the States, over and above the sums^ already subscribed will, not
exceed the amounts specified in statement D, accompanying this report. And that, including sums already subscribed,
the total amount to be ultimately provided for, in the event of a general assumption, will not exceed 25,403,362 ^
dollars,which would constitute an addition of 3,903,362, TVo dollars to the sum of 21,500,000 dollars already assumed.

6-

FINANCE.

[1792.

Should a total assumption be deemed eligible, it may, still, be advisable to assign a determinate Sum for each State,
that the utmost limit of the operation may be pre-established; and it is necessary, in order to the certainty of a due
provision, in proper time, that interest should not begiil to be payable, on the additional sums assumed, till after the
year 1792.
It will occur, that provision has been made for paying to each State, in trust for its non-subscribing creditors, an
interest upon the difference between the sum assumed for such State, and that actually subscribed, equal to what
would have been payable, if it had been subscribed*
In the event of a further assumption, either within the limits already^ established, or commensurate with the
remaining debts of the States, it is conceived that it will not be incompatible with the provision just mentioned, to
retain, at the end of each quartet, during the progress of the further subscription, out of the money directed to be
paid to each State, a sum corresponding with the interest upon so much of its debts as shall have been subscribed to
that period, paying the overplus, if any, to the State; An absolute suspension of that payment does not appear consistent with the nature of the stipulation included in that provision: for, though the money to be paid to a State be
expressly a trust for the non-subscribing creditors, yet, as it cannot be certain beforehand, that they will elect to
change their condition, the possibility ot it will not justify a suspension of payment to the State, which might operate as, suspension of payment to the creditors themselves.
A further objection to such a suspension results from the idea, that the provision in question - appears to have a
secondary object: namely, as a pledge for securing a provision for whatever balance may be found due to a State, on
the general settlement of accounts. The payment directed to be made to a State is " to continue until there shall be
a settlement of accounts between the United. States and the individual States, and-, in case a balance should then
appear in favor of a State, until provision shall be made for the said balance."
This secondary operation as a pledge or security (consistently^ with the intent of the funding act) can only be
superseded in favor of the primary object, a provision/or the creditors, and as far as may be necessary to admit them
to an effectual participation of it. But as whatever money may be paid to a State, is to be paid over to its creditors,
proportional deductions may, with propriety, be made from the debts of those creditors who may hereafter subscribe,
so as that the United States may not have to pay twice for the same purpose.
If it shall be judged expedient either to open again, or extend the assumption, it will be necessary to vary the
description of the debts which may be subscribed, so as to comprehend all those which have relation to services or
supplies during the war, under such restrictions as are requisite to guards against abuse.
In the original proposition for an assumption of the State debts, and in the suggestions now made on the same
subject, the Secretary has cohtemplated, and still contemplates, as a material part of the plan, an effectual provision
for the sale of the vacant lands of the United] States. He has considered this Resource as an important mean of
sinking a.part of the debt, and facilitating ultimate arrangements concerning the residue. If supplementary funds
shall be rendered necessary, by an additional assumption, the provision wilFmost conveniently be made at the next
session of Congress, when the productiveness of the existing revenues, and the extent of the sum to be provided for,
will be better ascertained.
There is a part of the public debt of the United States,, whichis a cause of some perplexity to the Treasury. It
is not comprehended within the existing provision for the foreign debt, which is confined to loans made abroad; arid
it is questionable, whether it is *to be regarded as a portion of the domestic debt. It is not only due to foreigners^
but the interest upon it is payable, by express stipulation, in a foreign country; whence it becomes a matter of doubt,
whether it be at all contemplated by the act making provision for the debt of the United States. The part alluded
to is that which is due to certain foreign officers, who seryed the United States during the late war. In consequence
of a resolution of Congress, directing their interest to be paid to thein in France, the certificates which were issued
to tiiem specify, that, in pursuance of and compliance with a certain resolution of Congress, of the third day of
February 1784, the said interest is to be paid, annually, at the house of Mons. leGrand, banker in Paris." Interest has accordingly been paid to them at Paris, down to the 31st of December, 1788, by virtue of a special resolution
Congress, of the 20th of August in that year; since which period, no payment has been made.
It has been heretofore suggested, as the opinion of the Secretary, that it would be expedient to cause the whole
of this description of debt to oe paid off; among other reasons, because it bear$ an interest at sis per centum per
annum, payable abroad, and can be discharged with a saving. The other reasons alluded to are of a nature both
weighty and delicate, and too obvious, it is presumed, to need a-specification. Some recent circumstances have
served to strengthen the inducements to the measure. But if it should, finally, be deemed unadvisable, it is necessary, at least, that provision should be made for the interest, which is now suspended, -under the doubt that has been
stated, and from the want of authority to remit it pursuaut to the contract.
The amount of this debt, with the arrears of interest to the end of the year 1791, is 8220,646 81.
4. The act making provision for the debt of the United States, has appropriated the proceeds of the Western
lands, as a fund for the discharge of the public debt. And the act making provision for the reduction of the public
debt, has appropriated all the surplus of the^ duties on imports and tonnage, to the end of the year 1790, to the purpose of purchasing the debt at the market price, and has authorized the President to borrow the further sum of two
millions of dollars for the same object.
These measures serve to indicate the intention of the Legislature, as early and as fast as possible, to provide for
the extinguishment of the existing debt.
In pursuance of that intention, it appears advisable that a systematic plan should be begun for the creation and
establishment of a sinking fund.
An obvious basis of this establishment, which may be immediately contemplated, is the amount of the interest
on much of the debt as has been, or shall be, from time to time, purchased, or paid off, or received in discharge of
any debt or demand of the United States, made payable in public securities, oyer and above the interest of any new
debt, which may be created, in order to such purchase or payment.
The purchases of the debt, already made, have left a sum of interest in the treasury, which will be increased by
future purchases; certain sums payable to the United States, in their own securities, will, when received, have a
similar effect. And there is ground to calculate on a saving upon the operations, which are in execution with regard
to the foreign debt. > The sale of the Western lands, when provision snail be made for it, may be expected to produce a material addition to such a fund.
It is therefore submitted, that it be adopted as ai principle, that all interest which shall have ceased to be payable
by any of the pieans above specified, shall be set apart aud appropriated in the most firm and inviolable manner
as a fund for sinking the public debt, by purchase or payment; and that the said fund be placed under the direction
of the officers, named in the second section of the act making provision for the reduction of the public debt, to be by
them applied towards the purchase of the said debt, until the annual produce of the said fund shall amount to two
per cent of the entire portion of the debt which bedrs a present interest of six per centum, and thenceforth to be
applied towards the redemption of that portion of the debt, according to the right which has been reserved to the
Government. It will deserve the consideration of the Legislature, whether this fund ought not to be so vested, as
to acquire the nature and quality of a proprietary trust, incapable of being diverted without a violation of the principles and sanctions ofproperty.
A rapid accumulation of this fund would arise from its own operation; but it is not doubted, that the progressive
development of the resources of the country, and a reduction of the rate of interest, by the progress of public credit,
already exemplified in a considerable degree, will speedily enable the Government to make important additions to it
in various ways. With due attention to preserve order and cultivate peace, a strong expectation may be indulged
that a reduction of the debt of the country will keep pace with the reasonable hopes of its citizens.
All which is humbly submitted.
ALEXANDER H A M I L T O N ,
Secretary of the Treasury.

LOANS.

1793.]

149

A.
Statement of the debt of the United States, funded agreeably to the act of Congress of the 4th of August, 1790, at
the Treasury and the severed loan offices, from the 1st October, 1790, to 30th September^ 1791.
Funded 6 per cent*
stock.
Treasury,
New Hampshire,
Massachusetts,
Rhode Island,
Connecticut,
New York,
New Jersey,
Pennsylvania,
Delaware,
Maryland,
Virginia,
North Carolina,
South Carolina,
Georgia,

Deferred 6 per
cent, stock.
2,592,018 72
95,661 22
1,063,034 9£
139,803 55
230,823 38
1,102,012 12
236,358 96
935,730 39
13,095 64
358,903 15
226,996 35
6,531 77
•67,682 68
20,074 92

$5,184,041 41
191,322 44
2,126,062 40
279,609 72
461,644 31
2,204,016 07
472,728 51
1,871,455 80
26,191 19
717,818 71
453,079 69
13,064 03
135,366 33
40,149 82
$14,177,450 43

7,088,727 79

Funded 3 per cent,
stock.

Total Amount.

3,973,865 10
147,423 35
1,984,457 41
179,577 71
342,760 99
1,643,224 96
271,749 71
865,216 21
16,242 75
621,188 48
343,128 22
9,398 35
96,060 87
37,008 29
10,531,303 00

11,749,925 23
434,407 01
5,173,554 75
598,990 98
1,035,228 68
4,949,253 15
980,837 18
3,672,402 40
55,529 58
1,697,910 34
1,024,104 26
28,994 75
299,109 88
97,233 03
31,797,481 22

The amount of stock funded at the Treasury to 30th September, 1791, has been ascertained with accuracy; but,
at that time, many subscriptions had been made, which have not yet been adjusted, for want of proper powers of
attorney, and other documents. It is, therefore, probable, that, on settlement of all the loans, the amount will be
found somewhat different from what is now represented.
The sums funded at the several loan offices, it is presumed, are ascertained "with accuracy; but, as the loans had
not been adjusted, inall instances, when the returns were made, some immaterial differences will probably hereafter
appear.
TREASURY DEPARTMENT, Register's .Office- September ZQth* 1791.
JOSEPH NOURSE, Register.
B.
Statement of the Registered and Unsubscribed Debt of the, United States, which remained unfunded upon the close
of the Loan on the 30th September, 1791.
Registered or unfunded debt.
The amount of this debt, as stated to Congress on the third of March, 1789, was - 8 4,598,462 78
There were treasury certificates, issued in exchange for loan office settlement certificates, cancelled by the Auditor of the treasury, from the 3d of March, 1789, to
4,716,376 45
the 30th of April, 1791, # .
There have been certificates issued to invalid pensioners and others, entitled thereunto, on final settlement, in pursuance of acts of Congress of the present and
134,883 18
late Government, Of the said debt, there has been loaned as follow, viz:
From the opening of the loan to the 31st of March, 1791,
1,371,978 37 9,449,722 41
1st April to 30th June, 1791,
1.088,466 60
1st of July to 30th September,
1,'611,194 82
4,071,639 79
Which, being deducted, leaves a balance,
5,378,082 62
Principal sum due the several creditors on the treasury books.
The interest on said debt to 31st December, 1790, is as follows, viz:
Arrearages to the 31st December, 1787,
479,677 88
968,054 76
Three years interest from 1st January, 1788, to 31st December, 1790,
1,417,732 64
Registered debt, principal and interest,

6,795,815 26

Unsubscribed debt.
The debt unsubscribed upon the books, New Jersey, Pennsylvania, and Maryland,
amounts to
Interest,
Credits on the^treasury books to invalid pensioners and several corps, for which
certificates of registered aebt are yet to be issued.

. 12,539 70
3,134 92

Invalid Pensioners.
For the amount due to them under the act of Congress, providing for the . payment
of their arrearages,
The following corps have credit on the treasury books, being for certain certificates
of final settlement, returned to the treasury and cancelled, and which certificates
had issued to non-commissioned officers and soldiers of said corps, respectively,
tor their pay:
Fourth regiment, Pennsylvania artillery,
Corps of fight dragoons,
Invalid regiment,
Artillery officers,
Wil let's regiment,
Hazen's regiment,
20
f

56,152 76

846 37
1,009 83
3^803 35
386 28
2,565 42
11,267 49

15,674 62

FINANCE.

150-

[1792.

Baldwin's regiment of artificers,
Corps of sappers and miners,
Armand's legion,
Lee's legion,
Fourth Pennsylvania regiment, Captain North's company,
Lacy's,

487 67
1,062 97

Franklin's company of militia,
Individual creditors of the States of Pennsylvania and Maryland have credit on
the treasury books, being for certificates of final settlement, returned to the treasury
and cancel led, ana which certificates had issued to them respectively.
By Benjamin Steele, Commissioner of Pennsylvania,
5436 66
John White, Maryland,
693 8a

281 28
416 93
834 17
593 17
1,550 64
280 67

6,130 55
21,529 72

Interest on the foregoing credits,

107,648 63
$6,919,138 51

TREASURY DEPARTMENT,

Register's Office,

30/7*

November. 1791.

Register.

JOSEPH NOURSE,

C,
Estimate of the outstanding debt, on the 30th of September, 1791, viz:
The amount of the domestic debt of the United States, as stated by the Secretary of the Treasury, in his report
of the 9th January, 1790, to the House of Representatives, relative to a provision for the support of the public
credit, is as follows:
Liquidated and loan office debt, as per schedule C.
Interest thereon, to the 31st of December- 1790, per do. D.
Additional sum for sinking the continental bills of credit, and for the discharge of the other parts
of the unliquidated debt
$31,797,481 22
6,919,138 51

From which deduct amount, as per statement A .
Amount of the registered debt and credit, with interest, per statement B.

$27*383,917 67
13,030,168 20
2,000,000 00
42,414,005 87
38,716,619^ 73
$3,697,466 14

Balance outstanding
NOTE.—The balance above, stated to be outstanding, probably exceeds the real sum. In the original estimate,
the old emission bills were computed at forty for one; but they have been provided for, at one hundred for one.
There are also loan office certificates, which were sent to public officers, to be applied, to the public service, and
which were supposed to have been so applied, but which have since, upon settlements of their accounts at the treasury, been returned and cancelled.
In addition to this, payments in public securities are expected to be made into the treasury, which will thereupon
be cancelled. And it is presumable, that, in the course of the war, sums have been lost and destroyed, which are
included in the estimates but, as there is some arrearage of interest not included in the calculation, and as there are
certain claims on the treasury, the event or amount or which is not yet determined, it is not possible, now, to make
a precise estimate of the difference between the sum computed to be outstanding, and what will be really found so.
TREASURY DEPARTMENT, Register's Office. November 30/7*. 1791.
JOSEPH NOURSE,

Register.

D.
Statement of subscriptions to the loan, payable in certificates or notes, issued by the respective States, in the several
Loan Offices, from the 1st of October, 1790, to the 30th of September, 1791, agreeably to the act passed the 4th
of August, 1790.

{

STATES.

New Hampshire
Massachusetts
Rhode Island
Connecticut
New York
New Jersey
Pennsylvania
Delaware
Maryland
Virginia
North Carolina
South Carolina
Georgia

Amount assumed1 Amount unsub- Remaining unby the act.
scribed.
subscribed to
complete the
am't assumed.
$300,000
4,000',000
200,000
1,600,000
1,200,000
800,000
2,200,000
200,000
800,000
3,500,000
2,400,000
4,000,000
'300,000

$242,501 25
4,447,013 81
344,259 49
1,455,331 81
1,028,238 75
599,703 56
675,101 33
53,305 84
299,225 40
2,552,570 88
1,166,355 57
4,634,578 52
300,000 00

$21,500,000

$18,328,186 21

$57,498 75
144,668 19
171,761 25
200,296 44
1,524,898 67 ,
146,694 16
500,744 60
947,429 12
733,644 43

$4?427,665 61

Subscribed be- | Estimated am't
yond the am't < of the remainassumed.
j ing debt of the
State.

$ 477,013 81
144,259 49

634,578 52

$1,255,851 82

$ 100,000 00 (a)
1,838,540 66(6)
349,259 69 (c)
458,436 52(a)
195,639 79 (a)
207,647 78(a)
500,000 00(a)
none.
430,000 00 (c)
1,172,555 25 {d)
713,192 30 (e)
1,965,756 33(6)
400^000 00(/)
$8,331,028 32

1792.]

SPIRITS, FOREIGN AND

DOMESTIC.

151

NOTES.

1. The sums marked a, in the column of remaining debts, are inserted upon recent official communications.
2. Those marked by are founded upon official statements, some time since received, and reported to the House
of Representatives, on the ninth of January, 1790, adding interest for the subsequent period. b
3. Those marked c, are founded on informal information,, but such as Is deemed substantially authentic and accurate.
The estimate for Rhode^ Island includes a sum not ascertained,^ which has been cancelled in consequence of former laws of the State, enjoining the creditors to bring in their certificates, and receive payment in paper money, but
has been revived by a late law of the State, directing the sums paid to be liquidated^ according to a certain scale,
and deducted from the original amount.
4. That marked d, is founded on a report of a committee of the llth November, 1791, to the House ofDelegates
of Virginia, compared with a former return to the treasury, and other information.
5. That marked e, is founded upon a statement of the Comptroller of North Carolina, of 20th May, 1790.
a 6. That marked/, is founded on a statement of the Treasurer of Georgia, of the 30th of April, 1790, compared
with other information.
7. The sums, expressed in round numbers, is not meant to be understood as precisely accurate, but as very near
the truth.
8. The foreign, as well as the domestic debt of the States, is included.
TREASURY DEPARTMENT, January 25, 1792.
ALEXANDER H A M I L T O N , Secretary of the Treasury.

2d CONGRESS.]

NO. 34.

[ 1 s t SESSION-.

M A N U F A C T U R E S OF. L E A T H E R .
COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, FEBRUARY 23, 1792.

Mr. BOUDINOT, from the committee to whom was referred sundry petitions of the farmers of New York, New
Jersey, and Pennsylvania, 'made the following reporf:
That, having examined into the facts mentioned in the said petitions, the following appeared to your committee
to be satisfactorily established;
That the manufacturing of leather is a very extensive and important branch of the manufactures of the United
States.
.
b
#
That the different kinds of bark are essential raw materials in this manufacture.
That the average price of bark, for some years past, has been from three to four and a half dollars per cord.
That a patent has lately been granted by the Government of Great Britain to an individual, for the importation
of bark into that kingdom, where it is used both in dying and tanning.That the patentee has employed agents in the different States to purchase and prepare bark for exportation.
That the average price given for bark by these agents, when shaved, is stated to be from ten to thirteen dollars,
per cord.
That great complaints are made by the tanners, that this rise in price will greatly injure, if not prevent the
manufacture of leather in the United States.
On a careful examination into the state of this business, your committee are of opinion that the subject is of
high national importance, and worthy the attention of Congress; but, as the demand for bark is a circumstance of
very considerable imprrtance to the landed interest of the United States, as well as that of the manufacturers of
leather; and your treasury (from the proper reports of the year, not having yet come in) is unable to furnish proper
and sufficient documents herein, so as to enable^ your committee t 3 form a decisive judgment on the whole subject,
<
viewed in all its consequences, they are of opinion that the subject matter of the petitions referred to them should
lay over to the next session of Congress; ana, in the mean time, your committee beg leave to recommend the following resolution, as the only present measure necessary to be adopted:
Resolved, That, from and after the
day of
next, the following additional duties shall be laid on all
saddles, and leather tanned or tawed,
per centum ad valorem^ except such as is or shall be otherwise rated.
On every pair of boots, ten cents.
On every pair of shoes, slippers, or golo shoes, made of silk, stuff, or leather, five cents.

2d CONGRESS.]

v

NO. 35.

SPIRITS, FOREIGN AND

[ 1 s t SESSION.

DOMESTIC.

COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, MARCH 6, 1792.

In obedience to the orders of the House of Representatives of the first and second days of November last, the first
directing the Secretary of the Treasury to report to the House such information as he may have obtained,
respecting any difficulties which may have occurred, in the execution of the a c t " repealing, after the last day of
June next, the duties heretofore laid upon distilled spirits, imported from abroad^ and laying others in their stead,
and, also, upon spirits distilled within the United States, and for appropriating the same," together with his
opinion thereupon; the second directing him to report to the House whether any, and what, alterations in favor of
the spirits which shall be distilled from articles of the growth or produce of the United States, or from foreign
articles, within the same, can, in his opinion, be made in the act for laying duties upon spirits^ distilled within'
the United States, consistently with its main design, and with the maintenance of the public faith; the said
Secretary respectfully submits the following report:
'
•
From the several petitions and memorials which have been referred to the Secretary, as well as from various
representations which have been made to him, it appears that objections have arisen in different quarters against the

m

FINANCE;

[1792,

abovementioned act, Which have, in sotne instances, embarrassed its execution^ and inspired a desire of its being
repealed; in others, have induced a wish that alterations may be made in some of its provisions.
These objections have reference to a supposed tendency of the act, first, to contravene the principles of liberty;
secondly, to injure morals3 thirdly, to oppress by heavy and excessive penalties; fourthly, to injure industry, ana
interfere with the business of distilling.
As to the supposed tendency of the act to contravene the principles of liberty* the discussions erf the subject
which have had place in and out of the Legislature, supersede the necessity of more than a few brief general
observations*
It is presumed that a revision of the point cannot, in this respect, weaken the convictions which originally
dictated the law.
There can surely be nothing in the nature of an internal duty on a consumable commodity, more incompatible
with liberty, than in that of an external duty, on a like commodity. A doctrine which asserts, that all duties of the
former kind (usually denominated excises) are inconsistent with the genius of a free government, is too violent, and
too little reconcileable with the necessities of society* to be true. It would tend to deprive the Government of what
is, in most ^countries, a principal source of revenue, and, by narrowing the distribution of taxes, would serve to
oppress particular kinds of industry. It would throw, in the first instance, an undue proportion of the public
burthen on the merchant and (m the landholder^
This is one of those cases in which names have an improper influence, and in which prepossessions exclude a
due attention to facts.
Accordingly, the law under consideration is complained of, though free from the features which have served in
other cases, to render laws on the same subject exceptionable: and, though the differences have been pointed out,
they have not only been overlooked, but the very things, which have been studiously avoided in the formation of the
law, are charged upon it, and that, too, from quarters where its operation would, from circumstances, have worn the
least appearance of them.
It has been, heretofore, noticed, that the chief circumstances which, in certain excise laws, have given occasion to
the charge of their being unfriendly to liberty are not to be found in the act which is the subject ot the report, viz:
first,^ a summary and discretionary jurisdiction in the excise officers, contrary to the course of the common law,
and in abridgment of the right of trial by jury; and secondly, a general power, in the same officers, to search and
inspect, indiscriminately, all the houses and buildings of the persons engaged in the business to whitih the tax relates.
As to the first particular, there is nothing in the act, even to give color to a charge of the kind against it, and,
accordingly, it has not been brought But, as to the second, a^ very different power has been mistaken fqr it, and
the act is complained of as_conferring that very power of indiscriminate search and inspection.
The fact, nevertheless^ is otherwise. An officer, under the . act in question, can inspect or search no house or
building, or even apartment of any house or building, which has not been previously entered and'marked by the
possessor, as a place used for distilling or keeping spirits.
And even the power, so qualified, is only applicable to distilleries from foreign materials, and in cities, towns, and
villages, from domestic materials; that is, only m cases in which the law contemplates that the business is carried
on upon such a scale as effectually to separate the distillery from the dwelling of the distiller. The distilleries
scattered over the country, which form much the greatest part -of the whole, are in no degree subject to discretionary
inspection and search.
The true principles of the objection which may be raised to a general discretionary power of inspection and
search is, that the domicil or dwelling of a citizenought to be free irom vexatious inquisition and intrusion.
This principle cannot apply to a case in which it is put in his own power to separate the place of his business
from the place of his habitation; and, by designating the former visible public marks, to avoid all intermeddling
with the latter.
A distillery seldom forms a part of the dwelling of its proprietor, and even where it does, it depends on him to
direct and limit the power of visiting and search, by marking out the particular apartments which are so employed.
But the requisition upon the distiller to set marks on the building or apartments which he makes use ot in his
business, is one of the topics of complaint against the law. Such marks are represented as a dishonorable badge;
and thus a regulation^ designed as much to conform with the feelings of the citizen, as for the security of the
revenue, is converted into matter of objection.
It is not easy to conceive what maxim of liberty is violated, by requiring persons who carry on particular trades,
which are made contributory to the revenue, to designate," by public marks, the places in which they are carrieff on.
There can certainly be nothing more harmless, ot* less inconvenient, thdn such a regulation. ' The thing itself is
frequently done by persons of various callings, for the information of customers; and why it should become a hardship or grievance, if required for a public purpose, can, with difficulty, be imagined.
The supposed tendency of the act to injure morals, seems to have relation to the oajhs, which are,-in a variety of
cases, required, and whichare liable to the objection, that they give occasion to perjuries.
The necessity of requiring oaths is, whenever it occurs, matter of regret. It is certainly desirable to avoid them
as often and as lar as possible; but it is more easy to desire than to find a substitute, The requiring of them is not
peculiar to the act in question: they are a common appendage of revenue laws, and are among the usual guards of*
those laws, as they are of public and private rights in courts of justice. They constantly occur in jury trials, to
which thecitizens of the United States are so much and so justly attached. The same objection, in different
degrees, lies against them in both cases, yet it is not perceivable how they can be dispensed with in either.
It is remarkable, that both the .kinds of security to the revenue, which are to be found in the act, the oaths of
parties, and the inspection of officers, are objected to. I f they are both to be abandoned, it is not easy to imagine
what security there can be for any species of revenue, which is to be collected from articles of consumption.
I f precautions of this nature are inconsistent with liberty, and immoral, as there are very few indirect taxes,
which can be collected without them, the consequence must be, that the entire or almost entire weight of the public
burthens must, in the first instance, fall upon fixed and visible property, houses and lands—a consequence which
would be found, in experiment, productive, of great injustice and inequality, and ruinous to agriculture.
It has been suggested by some distillers, that both the topics of complaint which have been mentioned, might be
obviated by a fixed rate of duty, adjusted according to a ratio compounded of the capacity of each still, and the
number and capacities of the cisterns employed with it; but this, and every similar method, are objected to by other
distillers, as tending to great inequality, arising from unequal supplies of the material at differenttimes,and at
different places^ from the different methods of distillation practised by different distillers, and from the different
degress of activity in the business, which arise from capitals more or less adequate.
The result of an examination of this point appears to be, that every such mode, in cases in which the business is
carried on upon an extensive scale, would, necessarily, be attendee! with"* considerable inequalities; and, upon the
whole? would be less satisfactory than the plan which has been adopted.
It is proved by the fullest information, that, in regard to distillers which are rated in the law, according to the
capacity of each still, the alternative of paying, according to the quality actually distilled, is received in many parts
of the United States as essential to the equitable operation of the duty. And it is evident, that such an alternative
C9uld not be allowed but upon the condition of the party rendering upon oath an account of the quantity of spirits
distilled by him, without entirely defeating the duty.
As to the charge, that the penalties of the act are severe and oppressive, it is made in such general terms, and so
absolutely without the specification of a single particular, that it is difficult to imagine where it points.
The Secretary, however, has carefidly reviewed the provisions of the act, in this respect, and he is not able to
discover any foundation Tor the charge.
Thepenaltiesit fnflictsarein their nature the same with those which are common in revenue laws, and, in their
degree, comparatively moderate.

1799.]

SPIRITS, FOREIGN AND DOMESTIC.

353

Pecuniary fines, from fifty to five hundred dollars, and forfeiture of the article in respect to which there has
been a failure to comply with the law, are the severest penalties inflicted upon delinquent parties, except in a very
few cases: In two, a forfeiture of the' value of the article is added to that of the article itself, and in some others, a
forfeiture of the ship or vessel, and of the wagon or other instrument of conveyance, assistant in a breach of law, is
likewise involved.
Penalties like these, for wilful and fraudulent breaches of an important law, cannot, truly, be deemed either
unusual or excessive. They are less than those which secure the laws of impost, and as moderate as can promise
security to any object of revenue which is capable of being evaded.
There appears to be but one provision in thejaw, which admits of a qilestion whether the penalty prescribed may
not partake of severity. It is that which inflicts the pains of perjury on anyperson who shall be convicted of
c 4 wilfully taking a false oath or affirmation in any of the cases in winch oaths or affirmations are required by the act."
Precedents in relation to this particular, vary. In many of them, the penalties are less severe than for perjury, in
courts of justice; in others, they are the same. The latter are, generally, of the latest date, and seem to have been
the result of experience.
, The United States haye, in other cases, pursued the same principle as in the law in question. And the practice
is certainly founded on strong reasons.
1st. The additional^security which it gives to the revenue, cannot be doubted. Many who would risk pecuniary
forfeitures and penalties, would not encounter the mor£ disgraceful punishment annexed to perjury.
2d. There seems to be no solid distinction between one false oath in violation.of law and right and another false
oath in violation of law and right. A distinction hi the punishments of different species of false swearing, is calculated
to beget false opinions concerning the sanctity of an oath5 and by countenancing an impression, that,a violation of it
is less heinous in the cases in which it is less punished, it tends to impair in the mind that scrupulous veneration for
the obligation of an oatli, which ought always to prevail, and not only to facilitate a breach of it in the cases winch the
laws have marked with less odium, but to prepare the mindt for committing the crime in other cases.
So far is the law under consideration from being chargeable with particular severity, that there are to be found in
it, marks of more than common attention, to prevent its operating severely or oppressively.
The 43rd section of the act contains a special provision, (and one which, it is believed, is not to be found in any
law enacted in this country, prior to the.present constitution of the United States) by which forfeitures and penalties
incurred, without an intention of fraud or wilful negligence, may be mitigated or remitted.
This mild and equitable provision is an effectual guard against suffering or inconvenience, in consequence of
undesigned transgressions of the law.
The 30th section contains a provision in favor of persons, who, though innocent, may accidently suffer by seizures
of their property, (as in the execution of the revenue laws sometimes unavoidably happens) which is, perhaps, entirely
peculiar to the law under consideration. Where there has even been a probabk cause ofseizure, sufficient to acquit
an officer, the jury are to assess whatever damages may have accrued from any injury to the article seized, with an
allowance for the detention of it, at the rate of six per centum per annum of the value, which damages are to be paid
out of the public treasury.
There are other provisions of the act which mark the scrupulous attention of the Government to protect the parties concerned from inconvenience and injury, and which conspire to vindicate the law from imputations of severity
or oppression.
>
t
The supposed tendency "of the act to injure industry, and to interfere with the business of distilling, is endeavored to be supported by some general and some special reasons, both having relation to the effect of the duty upon
the manufacture.
Those of the first kind affirm generally, that duties on home manufactures are impolitic, because they tend to
discourage them; that they are particularly so, when they are laid on articles manufactured from the produce of the
countiy,T)ecause they have, then, the additional effect of injuring agriculture; that it is the general policy of nations
to protect and promote their own manufactures^ especially those which are wrought out of domestic materials; that
the law in question interferes with this policy.
Observations of this kind admit of an easy answer. . Duties on manufactures tend to discourage them, or not,
according to the circumstances under which they are laid; and are impolitic or not, according to the same circumstances. When a manufacture is in its infancy, it is impolitic to tax it, because the tax would oe both unproductive,
and would add to the difficulties which naturally impede the first attempts to establish a new manufacture, so as to
endanger its success.
But when a manufacture (as in the case of distilled spirits in the United States) is arrived at maturity, it is as fit
an article of taxation as any other. No good reason can be assigned why the consumer of a domestic commodity
should not contribute something to the public revenue, when the consumer of a foreign commodity contributes to it
largely. And, as a general rule, it is not to be disputed, that duties on articles of consumption are paid by the consumers.
To the manufacture itself, the duty is no injury, if an equal duty be laid on the rival foreign article. And when
a greater duty is laid upon the latter than upon the former, as in the present instance, the difference is a bountr on
'the domestic article, and operates as an encouragement of the manufacture. The manufacturer can afford to se.II his
fabric the cheaper, in proportion to that difference, and is so far enabled to undersell and supplant the dealer in the
foreign article.
The principle of the objection would tend to confine all taxes to imported articles, and would deprive the Government of resources, which are indispensable to a due provision for the public safety and welfare, contrary to the plain
intention of the constitution, whicn gives express power to employ those resources when necessary—a power which
is found in all governments, and is essential to their efficiency, and even to their, existence. # #
Duties on articles of internal production and manufacture* form, in every country, the principal sources of revenue. Those on imported articles can only be carried to a certain extent, without defeating their object, by operating
either as prohibitions, or as bounties upon smuggling. They are, moreover, in some degree, temporary; for, as the
growth ot manufactures diminishes, the quantum of duty on imports, the public revenue, ceasing to arise from that
source, must be derived from articles which the national industry has substituted for those previously imported. I f
the Government cannot then resort to internal means for the additional supplies,, which the exigencies of every nation
call for, it will be unableto perform its duty, or even to preserve its existence. The communitymust be unprotected,
and the social compact be dissolved.
. .
For the same reasons that a duty ought not to be laid on an article manufactured out of the country, (which is
the point most insisted upon) it ought not to be laid upon the produce itself, nor consequently upon the land, which
is the instrument of that produce; oecause taxes arelaid upon land, as thzfund out of which the income of the proprietor is drawn: or, in other words, on account of its produce. There ought, therefore, on the principle of the objection, to be neither taxes on land, nor the produce 01 land, nor on articles manufactured from that produce. And
if a nation should be in a condition to supply itself with its own manufactures, there could then be very little, or no
revenue; of course, there must be a want of the essential means of national justice and national security.
Positions like tnese, however well meant by those who urge them, refute themselves, because they tend to the
dissolution of government, by rendering it incapable of providing for the objects forwhich it is instituted.
.
However true the allegation, that it is, and ought to be, the prevailing policy of nations to cherish their own
manufactures, it is equally true, that nations, in general, lay duties for the purpose of revenue, on their own manufactures; and it is obvious, to a demonstration, 4hat it may be done without injury to them. The most successful
nations m manufactures have drawn the largest revenues from the most useful of them. It merits particular attention, that ardent spirits are an article which has been generally deemed, and made use of, as one of thefittestobjects
of revenue, and to an extent, in other countries, whicn bears no comparison with what has been done in the United
States,

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[1792.

The special reasons alluded to, are of different kinds:
1, It is said, that the act in question, by laying a smaller additional duty on foreign spirits than the duty on homemade spirits, has a tendency to discourage the manufacture of the latter.
This objection merits consideration, and, as far as it may appear to have foundation, ought to be obviated.
The point, however, seems not to have been viewed, in all its respects, in a correct light
Before the present constitution of the United States began to operate, the regulations of the different States, respecting distilled spirits, were very dissimilar. In some of them, duties were laid on foreign spirits only,* in others,
on domestic as well as foreign. The absolute duty, in the former instances, and the difference of duty m the latter,
was, upon an average, considerably less than the present difference in the duties on foreign and home-made spirits.
I f to this be added, the effect of the uniform operation of the existing duties throughout the United States, it is easy
to infer, that the situation of our own distilleries is, in the main, much better, as far as, they are affected by the laws,
than it was previous to the passing of any act of the United States upon the subject They have, therefore, upon
the whole, gained materially, under the system which has been pursued by the National Government
The first law of the United States on this head, laid a duty of no more than eight cents per gallon on those
of Jamaica proof. The second increased the duty on foreign spirits to twelve cents per gallon, of the lowest proof,
and by certain gradations, to fifteen cents per gallon, of Jamaica proof. The last act places the duty at twenty
cents per gallon, of the lowest proof, and extends it, by the like gradations, to twenty-five cents per gallon, of Jamaica
proof; laying, also, a duty of eleven cents per gallon on home-made spirits, distilled from foreign materials of the
lowest proof, with a like gradual extension to fifteen cents per gallon of Jamaica proof; and a duty of nine cents
per gallon on home-made spirits, distilled from domestic materials of the lowest proof, with the like gradual extension to thirteen cents per gallon, of Jamaica proof, ^
If the transition had been immediate from the first to the last law, it could not have failed to have been considered
as a change in favor of our Own distilleries, as far as the rate of duty is concerned. The mean duty on foreign
spirits^ by the first law, was nine cents; by the last, the mean extra duty on foreign spirits is, in fact about eleven
cents, as it regards spirits distilled from/om^n materials, and about thirteen as it regards spirits distilled from domestic materials. In making this computation, it is to be adverted to, that the four first degrees of proof mentioned
in the law, correspond with the different kinds of spirits usually imported, while the generality of those made in the
United States, are of the lowest class of proof.
Spirits from domestic materials, derived a double advantage from the last law; that is, from the increased rate of
duty on foreign imported spirits, and from a higher rate of duty on home-made spirits of foreign materials.
But the intervention of the second law has served tq produce, in some places, a different impression of the business than would have happened without it. By a considerable addition to the duties on foreign spirits, without
laying any thing on those of home manufacture, it has served to give to the last law the appearance of taking away a
part of the advantages previously secured to the domestic distilleries. It seems to have been overlooked, that the
second act ought, in reality, to be viewed only as an intermediate step to the arrangement finally contemplated by
the legislature; and that, as part of a system, it has, upon the whole, operated in favor of the national distilleries.
The thing to be considered is the substantial existing difference in favor of the home manufacture, as the law now
stands.
The advantage, indeed, to the distillation of spirits from the produce of the country, arising from the difference
between the duties on spirits distilled from foreign, and those distilled from domestic materials, is exclusively the
work of the last act, and is an advantage which has not been properly Appreciated by those distillers of spirits from
home produce^ who have complained of the law as hurtful to their manufacture.
Causes entirely foreign to the law itself, have also assisted in producing misapprehension. The approximation of
the price of home-made spirits to that of foreign spirits, which has, of late, taken place, and which is attributed to the
operation of the act in question, is in a great degree owing to the circumstances which have tended to raise the price
ot molasses in the West India market, and to an extra importation of foreign spirits prior' to the first of July last to
avoid the payment of the additional duty which then took place.
It is stated in the petition from Salem, that, previous to the last act, the price of domestic to foreign spirits was as
Is. $d. to 3s. Ad. of the money of Massachusetts,- per gallon, and that, since that ac:, it has become as 3 s. 3d to 4s. 2 d.
It is evident that a rise from Is. 9d. to 3s. 3d. per gallon, which would be equal to twenty cents, is not to be attributed
wholly to a duty of eleven cents. Indeed, if there were a concurrence of no other cause, the inference would be
very different from that intended to be drawn from the fact, for it woiild evince a profit gained to the distiller of
more than eighty per cent, on the duty.
It is, however, meant to be understood, that this approximation of prices, occasions a greater importation and
consumption of foreign, and a less consumption of domestic spirits than formerly. How far this may, or may not
be the case, the Secretary is not now able to say with precision, but no facts have come under his notice officially,
which serve to authenticate the suggestion; and it must be considered as possible, that representations of this kind
are rather the effect of apprehension than of experience. It would even be not unnatural, that a considerable enhancement of the prices of the foreign article, should have led to a greater consumption of the domestic article, as
the cheapest of the two, though deareritself than formerly.
But, while there is ground to believe, that the suggestions which have been made on this point, are, in many
respects^ inaccurate and misconceived, there are known circumstances* which seem to render advisable, some
greater difference between the duties on foreign and on homemade spirits. These circumstances have been noticed in
the report of the Secretary, on the subject of manufactures, and an alteration has been proposed, by laying two cents in
addition, upon imported spirits of the lowest proof, with a proportional increase von the higher proofs, and by deducting one cent from the duty on the lowest proof of home made spirits, with a proportional diminution in respect to the
higher proofs.
This alteration would bring the proportion of the duties nearly to the standard which the petitioner, Hendrick
Dover, who appears likely to be well informed on the subject, represents as the proper one, to enable the distillation
of Geneva to be earned on with the same advantage as before the passing of the act He observes, that the duty on
home made Geneva, being nine cents, the additional duty on foreign ought to have been twelve cents Bv the
alteration proposed, the proportion will be as ten to eight, which is little different from that of twelve to nine
It is worthy of remark, that the same petitioner states, that, previous to the passing of the act of which he complains, he " could sell his Geneva sixteen and a quarter per cent, under the pnee of Holland Geneva but that he
cannot do it at present, and m future, lower than fourteen per cent." If. as he also states, the quality of his
Geneva be equal to that of Holland, and, if his meaning be, as it appears to be, that he can now afford to sell his
Geneva lower, by fourteen per cent, than the Geneva of Holland, it will follow, that the manufacture of that article is in a very thriving tram, even under the present rate of duties. For a difference of fourteen per cent in the
price, is capable of giving a decided preference to the sale of the domestic article.
2. It is objected, tiiat the duty, by being laid in the first instance upon the distiller, instead of the consumer
makes a larger capital necessary to carry on the business; and, in this country, where capitals are riot laree nuts
the national distiller under disadvantages.
® 1
But this inconvenience, as far as it has foundation, in the state of things, is essentially obviated by the credits
given. Where the duty is payable upon the quantity distilled, a credit is allowed, which cannot be less than six.
and may extend to nme months. Where the duty is charged on the capacity of the still, it is payable half yearly
Sufficient time is, therefore, allowed, to raise the duty from the sale of the article: which supersedes the necessity of
a greater capital. It is well known, that the, article is one usually sold for cash, or at a short credit I f these
observations are not applicable to distilleries m the interior country, the same may be said, in a sreat degree, of the
objcetion itself. The course of the business, m that quarter, renders a considerable capital less necessary than elsewhere. The produce of the distiller's own farm, or of the neighboring farms, brought to be distilled upon shares, or
compensations m the article itself, constitute the chief business of the distilleries in the remote parts of the countrv
In the comparatively few instances in which they may be prosecuted as a regular business, upon a large scale, by
force of capital, the observations which have been made, will substantially apply.

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The collection of the duty from the distiller, has, on the other hand, several afdvantages. It contributes to
equality, by charging the article, in the first stage of its progress, which diffuses the duty among all classes alike. It
the better secures the collection of the revenue, by confining the.responsibility to a smaller number of persons, and
simplifying the process. And it avoids the necessity of so great a number of officers, as would be required in a more
diffuse system of collection, operating immediately upon purchasers and consumers. Besides, that the latter plan
would transfer whatever inconveniences may be incident to the collection from a smaller to a greater number of
persons.
3. It is alleged that the inspection of the officers is injurious to the business of distilling, by laying open its
secrets or mysteries.
Different distillers, there is no doubt, practice, in certain respects, different methods in the course of their business, and have different degrees of skill. But it may well be doubted whether, iri a business so old and so much
diffused as that of the distillation of spirits, there are at this day secrets of consequence to the possessors. There
will, at least, be no hazard in taking it for granted, that none such exist in regard to the distillation of rum from
molasses or sugar, or of the spirits from gram usually called whiskey, or of brandies from the fruits of this country.
The cases in which the allegations are made with most color, apply to Geneva, and, perhaps, to certain cordials.
It is probable that the course of the business might and would always be such as, m fact, to involve no inconvenience on this score. But, as the contrary is affirmed, a!nd as it is desirable to obviate complaint as far as it can be
done consistently with essential principles and objects, it may not be inadvisable to attempt a remedy.
It is to be presumed, that, if any secrets exist, they relate to a primary process, particularly the mixture of the
ingredients; trus, it is supposable, cannot take a greater time each day, than two hours. If, therefore, the officers
of inspection were enjoined to forbear their visits to the part of the' distillery commonly made use of for such process,during a space not exceeding two hours in each day, to be notified by the distiller, there is ground to conclude
that it would obviate the objection.
4. The regulations for marking of casks and vessels, as well as houses and buildings, also furnish matter of
complaint.
This complaint, as it regards houses and buildings, has been already attended to. But there is a light in which
it is madet th;*£ has not yet been taken notice of.
It is said, that the requiring the doors of the apartments, as well as the outer door of each building, to be marked,
imposes unnecessary trouble.
When it is considered, how little trouble or expense attends the execution of tins provision, in thefirstinstance,
and that the marks once set, will endure for a great length of time, the objection to it appears to be without weight.
But the provision, as it relates to the apartments of buildings, has for its immediate object the convenience of the
distillers themselves. It is calculated to avoid the very evil or an indiscriminate search of their houses and buildings, by enabling them to designate the particular apartments which are employed for the purposes of their business,
and to secure all others from inspection and visitation.
The complaint, as it respects the marking of casks and vessels, has somewhat more foundation. It is represented (and upon careful inquiry appears to be true) that, through long established prejudice, home-made spirits of equal
quality with foreign, if known to be home-made, will not command an equal pxice. This particularly applies to
Geneva.
If the want of a distinction between foreign and home-made spirits were an occasion of fraud upon consumers,
by imposing ^ worse for a better commodity, it would be a reason for continuing it; but as far as such a distinction
gives operation to a mere prejudice, favorable to a foreign, and injurious to a domestic manufacture, it furnishes a
reason for abolishing it.
Though time might be expected to remove the prejudice, the progress of the domestic manufacture, in the interval, might be materially checked."
It appears, therefore, expedient to remove this ground of complaint, by authorizing the same marks and certificates both for foreign and for home-made Geneva.
Perhaps, indeed, it may not be unadvisable to vest somewhere a discretionary power to regulate the forms of
certificates which are to accompany, and the particular marks which are to be set upon casks and vessels containing
spirits, generally, as may be/ound convenient in practice.
Another source of objection with regardf to the marking of casks is, that there is a general prohibition against
defacing, or altering the marks, and a penalty upon doing it, which prevents the using of the same casks more than
once, and occasions waste, loss, and embarrassment.
It is conceived that this prohibition does not extend to the effacing of old marks, and placing of new ones, by the
officers of the revenue, or in their presence, and by their authority. But as real inconveniences would attend a
contrary construction, and there is some room for question, it appears desirable that all doubt should be removed by
an explicit provision to enable the officer to efface old marks and substitute new ones, when casks have been emptied
of their former contents and are wanted for new use.
5. The requisition to keep an account from day to day of the quantity of spirits distilled, is represented both as
a hardship, and impossible to be complied with.
But the Secretary is unable to perceive that it cart * justly be viewed either in the one or in the other light. The
trouble of setting down, in the evening, the work of the day, in a book prepared for, and furnished to the party, must
be inconsiderable, and the doing of it would even conduce to accuracy in business.
The idea of impracticability must have arisen from some misconception. It seems to involve a supposition that
something is required different from the truth of the fact. Spirits distilled are usually distinguished into high wines,
proof spirits^ and low wines. It is certainly possible to express, each day^ the quantity of each kind produced, and
where one kmd is converted into another, to explain it bybrief notes, showing in proper columns the results in those
kinds of spirits which are ultimately prepared tor sale.
A revision is now making of the forms atfirsttransmitted, and it is not doubted that it will be easy to obviate the
objection of impracticability.
On full reflection, the Secretary is of opinion that the requisition in this respect is a reasonable one, and that it
is of importance to the due collection of the revenue, especially in those cases where, by the alternative allowed in
favor of country distilleries, the 9ath of a party is the only evidence of the quantity produced. It is useful in every
such case to give the utmost possible precision to the object which is to be attested.
6. It is alleged as a hardship, that distilleries are held responsible for the duties on spirits which are exported,
till certain things, difficult to beperformed, are done, in order to entitle the exporter to the drawback.
This is a misapprehension. The drawback is at all events to be paid in six months, which is as early as the duty
can become payable, and frequently earlier than it does become payable. And the Government relies on the bond
of the exporter for a fulfilment of the conditions upon which the drawback is allowed.
An explanation to the several collectors, of this point, which has taken place since the complaint appeared, will
have removed the cause of it.
The same explanation will obviate another objection, founded on the supposition that the bond of the distiller
and that of the exporter are for.alike purpose. The latter is merely to secure the landing of the goods in a foreign
country, and will often continue depending after every thing relative to duty and drawback has been liquidated and
finished.
7. It is an article of complaint that no drawback is allowed in case of shipwreck, when spirits are sent from
one port to another in the United States.
There does not occur any objection to a provision for making an allowance of that kind, which would tend to
alleviate misfortune, and give satisfaction^.
8. The necessity of twenty-four hours' notice, in order to the benefit of drawback on the exportation of spirits*
and the prohibition to remove them from a distillery after sunset, except in the presence of m officer, are represented as embarrassments to business.

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'cim

The length of notice required appears greater than is necessary. It is not perceived that any inconvenience
could arise trom reducing the time to six hours.
But it is not conceived to be necessary or expedient to make an alteration in the last mentioned particular. The
prohibition is of real consequence to the security of the revenue, The course of business will readily adapt itself to
1t, and the presence of an officer in extraordinary cases "will afford due accommodation*
9. It is stated as a hardship, that there is no allowance for leakage and wastage, in the case of spirits shipped
from one State to another.
The law for the collection of the duties on imports and tonnage allows two per cent, for leakage, on spirits imported. A similar allowance on home made spirits at the distillery, does not appear less proper.
10. It is, mentioned as a grievance^ that distillers are required to give bond, with surety9 for the amount of the
duties, and that the sufficiency of the surety is made to depend on the discretion of the chief officer of inspection.
The requiring of sureties can be no more a hardship on distillers, than on importing merchants, and every other
person to whom the public afford a credit. It is a natural consequence of the credit allowed; ana a very reasonable condition of the indulgence, which, without this precaution, might be imprudent, and injurious to the United
States.
^
The party has his option to avoid it by prompt payment of the duty, and is even entitled to an abatement, which
may be considered as a^premium, if he elects to do so.
As to the second point, if sureties are to be given, there must be some person on the part of the Government to
judge of their sufficiency, otherwise the thing itself would be nugatory; and the discretion cannot be vested more
conveniently for the party? than in the chief officer of inspection for the survey.,
A view has now been taken of most, if,not of all, the objections of a general nature, which have appeared.
Some few, of a local complexion, remain to be attended to.
The representation signed Edward Cook, chairman, as on behalf of the four most western counties of Pennsylvania, states, that the distance of that part of the country from a market for its produce, leads to a necessity of distilling the grain, which is raised, as a principal dependence of its inhabitants; which circumstance, and the scarcity
of cash, combine to render the tax in question unequal, oppressive, and particularly distressing to them.
As to the circumstance of equality, it may safely be affirmed to be impracticable to devise a tax which shall
operate with exact equality upon every part of the community. Local and other circumstances will inevitably create disparities, more or less great.
Taxes on consumable articles have, upon the whole, better pretensions to equality than any other. If some of
them fall more heavily on particular parts of the community., others of them are chiefly borne by other parts. And
the result is an equalization of the burthen as far as it is attainable. Of this class of taxes it is not easy to conceive
one wliich can operate with greater equality than a tax on distilled spirits. There appears to be no article, as far
as the information of the Secretary goes, which is an object of more equal consumption throughout the United
States.
"
In particular districts, a greater use of cider may occasion a smaller consumption of spirits; but it will not be
found, on a close examination, that it makes a material difference. A greater or less use of ardent spirits, as far as
it exists, seems to depend more on relative habits of sobriety or intemperance than on any other cause.
As far as habits ot less moderation, in the use of distilled spirits, should produce inequality any where, it would
certainly not be a reason with the Legislature either, to repeal or lessen a tax, which, by rendering the article dearer^
might tend to restrain too free an indulgence of such habits.
It is certainly not obvious how this tax can operate particularly unequally upon the part of the country in question. As a general rule it is a true one, that duties on articles of consumption fall on the consumers, by being added to the price of the commodity. This is illustrated, in the present instance, by facts. Previous to the Jaw laying a duty on home-made spirits, the price of whiskey was about thirty-eight cents; it is now aboutfifty-sixcents.
OSier causes may have contributed in some degree to this effect, but it is evidently to be ascribed chiefly to the
duty.
.
,
.
b
Unless, therefore, the inhabitants of the counties which have been mentioned are greater consumers of spirits
than those of other parts of the country, they cannot pay a greater proportion of the tax. If they are, it is their interest to become less so. It depends on themselves, by diminishing th& consumption, to restore equality.
The argument, that they are obliged to convert their grain into spirits, in order to transportation to distant markets, does not prove the point alleged. The duty on all they send to those- markets will be paid by the purchasers.
They will still pay only upon their own consumption.
As far as an advance is laid upon the duty, or as far as the difference of duty, between whiskey and other spirits,
tends to favor a greater consumption of the latter, they, as greater Manufacturers of the article, supposing this fact
to be as stated, will be proportionably benefitted.
The duty onhome-made spirits from domestic materials, if paid by the gallon, is nine cents. From the communications which have been received, since the passing of the act, it appeal's that, paying the rate annexed to the
capacity of the still, and using great diligence, the duty may be, in fact, reduced to six cents per gallon. Let the
average be taken at seven anda half cents, which isprobably higher than is really paid.
Generally speaking, then3 for every gallon of whiskey which is consumed, the consumer may be supposed to pay
seven and a half cents; but tor every gallon of spirits, distilled from foreign materials, the consumer pays, at least,
eleven cents, and for every gallon of foreign spirits, at least twenty cents. b The consumer^ therefore, of foreign
spirits, pays nearly threetimesthe duty, and the consumer of home-made spirits, from foreign materials, nearly fifty
per cent more duty, on the same quantity^ than the consumer of spirits from* domestic materials, exclusive of the
greater price, in both cases, which is an additional charge upon each of the twofirstmentioned classes of consumers.
When it is considered that
parts of the whole quantity of spirits consumed in the United States are foreign,
and Ss are of foreign materials, and that the inhabitants of the atlantic and mid-land counties are the principal consumers of these more highly taxed articles, it cannot be inferred that the tax under consideration bears particularly
hard on the inhabitants of the Western country.
This may serve as an exemplification of a general proposition, of material consequence, namely, that, if the former
descriptions of citizens are able, from situation, to obtain more for their produce than the latter, they contribute
proportionally more to the revenue. Numerous other examples, in confirmation of this, might be adduced.
As to the circumstance of scarcity of money, as far as it can be supposed to have foundation, it is as much an
objection to any other tax as the one in question. The weight of the tax is not^ certainly such as to involve any
peculiar difficulty. It is impossible to conceive that nine cents per gallon on distilled spirits, which is stating it at
the highest, can,' from the magnitude of the tax, distress any part ot the country, which has an ability to pay taxes
at all—enjoying, too, the unexampled advantage of a total exemption from taxes on houses, lands, or stock.
The population of the United States being about four millions of persons,-and the quantity of spirits annually
consumed between ten and eleven millions of gallons, the yearly proportion to each family, if consisting of six persons, which is a full ratio, would be about sixteen gallons, the duty upon which would be less than one dollar and a
half. The citizen who is able to maintain a family, and who is the owner or occupier of a farm, cannot feel any
inconvenience from so light a contribution; and the industrious poor, whether artisans or laborers, are usually allowed
spirits, or an equivalent, in addition to their wages.
,
The Secretary has no evidence to1 satisfy his mind that a real scarcity of money will be found, on experiment, a
serious impediment to the payment of the tax any where. In the quarter where this complaint has particularly
prevailed, the expenditures, for the defence of the frontier, would seem, alone, sufficient to obviate it. To this, it
is answered, that the contractors for the supply of the army operate with goods, and not with money. But this still
tends to keep at home whatever money finds its way there. Nor is it a fact, if the information of the Secretory
be not materially erroneous,, that the purchases of the contractors of flour, meat, &c. are wholly with goods. But,
if they were, the Secretary can aver, that more money has, in the course of the last year, been sent into the Western
country, from the treasury, in specie, and bank bills, which answer the same purpose, for the pay of the troops and

SPIRITS, FOREIGN AND

1792.]

DOMESTIC.

157

militia, and for quartermaster's supplies, than the whole amount of the tax in the four western counties of Pennsylvania and the district of Kentucky, is likely to equalin four or five years. Similar remittances are likely to'be
made in future.
Hence, the Government itself furnishes, and, in all probability, will continue to furnish, the means of paying its
own demands, with a surplus which will sensibly foster the industry, of the parties- concerned, if they avail themselves
of it, under the guidance of a spirit of economy and exertion.
Whether there be no part of the United States in ^Wiich the objection -of ^vant of money may truly exist, in &
degree to render the payment of the duty seriously distressing to the inhabitants, the Secretary is not able to pronounce. He can only express his own doubt of the fact, and refer the matter to such information as the members of
any district, so situated, may have it in their power to offer to the legislative body.
Should the case appear to exist, it would involve the necessity of a measure, in the abstract, very ineligible, that
is, the receipt of the duty in the article itself.
If an alternative of tins sort were to be allowed, it would be proper to make it the duty of the party paying, to
deliver the article at the place in each county, where the office of inspection is kept, and to regulate the price
according to such a standard as would induce a preference of paying in cash, except from a real impracticability of
obtaining it
. . .
In regard to the petition from the district of Kentucky^ after what has been said with reference to other applications, it can only be necessary to observe, that the exemption which is sought by that petition is rendered impracticable by an express provision of the constitution, which declarer that " S i duties, imposts, and excises, shall be
uniform throughout the United States."
In the course of the foregoing examination of the objections which have been made to the law, some alterations
have been submitted for the purpose of removing a part of them. The Secretary will now proceed to submit such
further alterations as appear to him advisable, arising either from the suggestions of the officers of the revenue or
from his own reflections.
1., It appears expedient to alter the distinction respecting distilleries from domestic materials in cities, towns,
and villages, so as to confine it to one or more stills worked at the same distillery, the capacity or capacities of which
together do not fall short of four hundred gallons.
The effectual execution of the present provisions respecting distilleries from home materials in cities, towns, and
villages, would occasion an inconvenient multiplication of officers, and would, in too great a degree, exhaust the
product of the dutyin the expense of collection. Itis also probable that the alteration suggested would also conduce
to public satisfaction.
2. The present -provisions concerning the entering of stills are found, by experience, not to be adequate, and, in
some instances, not convenient;
,
^
It appears advisable that there shall be one office of inspection for each county, with authority to the supervisor
to establish more than one, if he shall judge it necessary for the accommodation of the inhabitants; and that every
distiller, or person having or keeping a still, shall be required to make entry of the same at some office of inspection for the county, within a certain determinate period in each year. It will be proper, also, to enjoin upon every
person, who, residing within the county, shall procure a still, or who, removing into a county, shall bring into it a
still, within twenty days after such procuring or removal, and before he or she begins.to use the still, to make
entry at the office of inspection. Every entry, besides describing the still, should specify in whose possession itis,
and the purpose for which it is intended, as, whether for sale or for use in distilling; and in the case of a removal
of the person from another place into the county, shall specify the place from which the still shall have been brought
A forfeiture of the still ought, in every case in which an entry is required, to attend an omission to enter.
This regulation, by simplifying the business of entering stills, would render it easier to comprehend and comply
with what is required, would furnish the officers -with a better rule*for ascertaining delinquencies, and? by avoiding
to them a considerable degree of unnecessary trouble, will facilitate the retaining of proper characters in the offices
of collectors.
*
_
3. It is represented that difficulties have, in some instances, arisen, concerning the persons responsible for the
duty. The apparent not being always the real-proprietor, an opportunity for collusion is afforded; and without
collusion, the uncertainty is stated as a source of embarrassment.
It also, sometimes, happens, that certain itinerant persons, without property, complying with the preliminary
requisitions of the law as to entry, &c. erect and work stills for a time, and before a half yearly period of payment
arrives, remove and evade the duty^
It would tend to remedy these inconveniencies, if possessors and proprietors of stills were made jointly and
severally liable, and if the duty were made a specific lien on the still itself; if, also, the proprietor of the land upon
which any still may be worked should be made answerable for the duty, except where it is worked by a lawful and
bona fide tenant of the land of an estate not less than for a term of one year, or unless such proprietor can make it
appear, that the possessor of the still was, during the whole time, without his privity or connivance, an intruder or
trespasser on the landj and if, in the last place, any distiller, about to remove from the division in which he is,
should be required, previous to such removal, to pay the tax for the year, deducting any prior-payments, or give
bond, with approved surety, conditioned for the payment of the full sum for which he or she should be legally
accountable to the end of the year, to the collector of the division to which the removal shall be, rendering proof
thereof, under the hand of the said collector, within six months after the expiration of the year.
As well with a view to the forfeiture of the stills for non-entry, as to give effect to a specific lien of the duty, (if
either or both of these provisions should be deemed eligible) it will be necessary to enjoin it upon the officers of
the revenue to identify, by proper marks, the several stills which shall have been entered with them.
4. The exemptions granted to stills of the capacity of fifty gallons and under, by the 36th section of the law.
appear, from experience^ to require revision.
Tending to produce inequality, as well as to frustrate the revenue, they have excited complaint. It appears, at
least, advisable, that the obligation to enter, as connected with that of paying duty, should extend to stills of all
dimensions, and that it shouldTbe enforced, in every case, by the same penalty.
5. The 28th section of the act makes provision for the seizure of spirits, unaccompanied with marks and certificates, in the cases in which they are required: but as they are required only in certain cases, and there is no method
of distinguishing the spirits, in respect to# which they are necessary, from those in. respect to which they are not
necessary, the provision becomes nugatory^ because an attempt to enforce it would.be oppressive. Hence, not only
a great security for the due execution of the law is lost, but seizures very distressing tq unoffending individuals must
happen, notwithstanding great precaution to avoid them.
ft would be, in the opinion of the Secretary, of great importance to provide, that all spirits whatsoever,-in casks or
vessels of the capacity of twenty gallons and upwards, should be marked and certified, on pain of seizure and forfeiture, making it the duty of the officers to furnish the requisite certificates gratis, to distillers and dealers, in all
cases in which the law shall have been complied with.
In those cases in which an occasional recurrence to the officers for certificates might be inconvenient, blanks
may be furnished, to be accounted for. And it may be left to the parties themselves, in the like cases, to mark their
own casks or vessels in some simple manner, to be defined ifi the law. These cases may be designated generally.
They will principally relate to dealers, who, in the course of their business, draw off spirits from larger to smaller casks, and to distillers, who pay according to the capacities of their stills.
As a part of a regulation of this sort, it will be necessary to require, that, within a certain period, sufficiently
long to admit of time to know and comply with the provision, entry shall be made, by all dealers and distillers, of
all spirits in their respective possessions, which shall not have been previously marked and certified, according to law,
in order that they may be marked and certified as old stock.

21

f

158

FINANCE.

t l 792,

The regulations here proposed, though productive of some trouble and inconvenience in the outset, will be afterwards, a security both to individuals and to the revenue.
'
6. A t present, spirits may not be imported from abroad in casks of less capacity than fifty gallons. The size of
these casks is smaller than is desirable, so far as the security of the revenue is concerned, and.there has not occurred
any good objection to confining the importation to larger .casks, that is to say, to casks of not less than ninety gallons.
Certainly, as far as respects^rum from the West Indies, it may be done without inconvenience, being conformable
to the general course or business. The result of examinatfon is, that the exception as to this particular, in favor of
gin, may be abolished. Should any alteration on this subject take place, it ought not' to begin to operate till after
the expiration of the year.
7. There is ground to suppose, that the allowance of drawback, without any limitation as to quantity, has been
abused. It is submitted that none be made on any less quantity than one hundred and fifty gallons.
8. There is danger that facility may be given to illicit importations, by making use of casks which have been
once regularly marked, and the certificates which have been issued with them, to cover other spirits than those
originally contained in such casks. Appearances which countenance suspicion, on this point, have been the subjects
of representation from several quarters.
The danger may be obviated by prohibiting the importation in^uch marked casks, on pain of forfeiture both of
the spirits and of any ship or vessel in which they may be brought. A. prohibition of this sort does not appear
liable to any good objection.
9. The duty of sixty cents per gallon of the capacity of a still was founded upon a computation that a still of any
given ^ dimensions, worked four months in the year, which is the usual period of country distillation, would yield a
quantity of spirits, which, at the rate of nine cents per gallon, would correspond with sixty cents per gallon of the
capacity of the still. It will deservp consideration, whether it will not be expedient to give an option to country
distillers, at the annual entry of their stills, to take out a licence for any portion of ihe year, whicn they may respectively think fit, and to pay at the rate of twelve and a half cents per gallon of the capacity, per month, during
such period. This to stand in lieu of the alternative of paying by the gallon distilled; it would obviate in, this case
the necessity of accounting upon oath, and would leave it in the power of each distiller to cover the precise time he
meant to work his still with a licence^ and to pay for that time only. A strict prohibition to distill at any other time
than that for which the^ licence was given wouldbe'of course necessary to accompany the regulation as tar as regarded any such licensed distiller.
- .
.
The only remaining points which have occurred, as proper to be submitted to the consideration of the LegislaN
ture, respect the officers of the revenue. ,
It is represented that, in some instances, from'the ill humor of individuals, the officers have experienced much
embarrassment, in respect to the filling of stills with watery to ascertain their capacity, which, upon examination, is
found the most simple and practicable mode. The proprietors have, in some instances, not only refused to aid the
officers, but have even put out of their way the means by which the filling might be conveniently accomplished.
It would conduce to the easy execution of the law, and to the very important purpose of retaining and procuring
respectable characters^ collectors, if the proprietors and possessors of stills were required to aid them in the execution of this part of their duty, or to pay a certain sum as a compensation for the doing of it.
The limits assigned in the law, respecting compensations, are found in practice essentially inadequate to the object.
This is so far the case, that it becomes the duty of the Secretary to state, that greater latitude in this particular,
is indispensable to the effectual execution of ihe law.
In the most productive divisions, the commissions of the collectors afford but a moderate compensation. In the
greatest part of them, the compensation is glaringly disproportioned to the service; in many of them, it falls materially short of the expense of the officer.
Jt is believed that, in no country whatever, has the collection of a similar duty been effected within the limit
assigned. Applying in the United. States to a single article only, and yielding consequently a less total product
than where many articles are comprehended, the expense of collection must of necessity be proportionally greater.
It appears to the Secretary, that seVen and a half per cent, of the total product of the duties on distilled spirits,
foreign as well as domestic, and not less, will suffice to defray the compensations to officers, and other expenses
incidental to the collection of the duty. This is to be understood as supplemental to the present custom house
expenses.
It is unnecessary to urge to the House of Representatives, how essential it must be to the execution of the law,
in a manner effectual to the purposes of the Government, and satisfactory to the community, to secure, by competent, though moderate rewards, the diligent services of respectable and trust-worthy characters.
All which is humbly submitted,
ALEXANDER HAMILTON,
^
„
_
Secretary of the Treasury~
TREASURY DEPARTMENT, March 5, 1792.

2 d CONGRESS.]

[1st SESSION,

]Sf0. 3 6 .

ADDITIONAL

SUPPLIES

FOR

1792,

COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, MARCH 17, 1^92.
TREASURY DEPARTMENT,

March 16, 1792,

The Secretory of the Treasury, pursuant to a resolution of the House of Representatives, of the 8th instant, directing the said Secretary to report to the House his opinion of the best mode of raising the additional supplies,
requisite for the ensuing year, respectfully submits the following report:
The- sumwhich is estimated to be necessary for carrying into effect the purposes of the act for making further and more effectual provision for the protection of the frontiers of the United States, beyond the provision made
by the act making appropriations for the support of Government, for the year 1792, is $675,950 08.
The returns which have been received at the treasury, subsequent to the Secretary's report of the 23d of January last, among which are those of some principal ports, afford satisfactory ground of assurance that the quarter,
ending the last of December, was considerably more productive than it was supposed likely to prove, authorizing
a reliance that the revenues, to the end of the year 1791, will yield a surplus of8150,000, which may be applied, in
part, of the sum of $675,950 08 cents, above stated to be necessary.
Provision remains to be made for the residue of this sum, namely, $525,950 08 cents.
Three expedients occur to the option of the Government, for providing this sum.
One, to dispose of the interest to which the United States are entitled m the Eankof the United States. This,
at the present market price of bank stock, would yield a clear gain to the Government, much more than adequate to
the sum required.

1792.]

ADDITIONAL SUPPLIES FOR 1792.

159

Another, to borrow the money upon an establishment of funds, either merely commensurate with the interest
to be paid, or affording a surplus which will discharge the principal by instalments within a short term.
The third is, to raise the amount by taxes.
The first of these three expedients appears to the Secretary altogether unadvisable.
First. It is his present opinion that it will be found, in varibus respects, permanently the interest of the United
States to retain the interest to which they are entitled in the bank. But,
Secondly. If this opinion should not be well founded, it would be improvident to dispose of it, at the present
juncture, since, upon a comprehensive view of the subject, it can hardly admit of a doubt, that its future value, at
a period-not very distant, will be considerably greater than its present;. while the Government will enjoy the benefit of whatever dividends shall be declared in the interval. And,
Thirdly. Whether it shall be deemed proper to retain or dispose of this interest, the most useful^ application of
the proceeds wall be as a fund for extinguishing the public debt A necessity of applying it to any different object,
if it should be found to exist, would be matter cif serious regret.
The second expedient would, in the judgment of the Secretary, be preferable to the first.
For tins, the following reason, if there were no other, is presumed to be conclusive, namely, that the probable
increase of the value of the stock may itself be estimated as a considerable, if not a sufficient fund for the repayment of the sum which might be borrowed.
If the measure of a loan should be thought eligible, it is submitted, as most advisable, to accompany it with a
provision sufficient not only to pay the interest, Dut to discharge the principal witliin a short period. This will,
at least, mitigate the inconvenience of making all addition to the public debt.
But the result of mature reflection is, in the mind of the Secretary, a strong conviction that the last of the three
expedients which have been mentioned, is to be preferred to either of the other two.
Nothing can more interest the national credit and prosperity, than a constant and systematic attention to husband all the means previously possessed, for extinguishing the present debt, and to avoid, as much as possible, the
incurring of any new debt.
Necessity alone, therefore, can justify the application of any of the public property, other than the annual revenues, to the current service, or to the temporary and casual exigencies oi the country, or the contracting of an additional debt, by loans, to provide for those exigencies.
Great emergencies, indeed, might exist, in which loans would be indispensable. But the occasions which will
justify them, must be, truly, of that description.
The present is not of such a nature. The sum to be provided is not of magnitude enough to furnish the plea of
necessity.
Taxes are never welcome to a community. They seldom fail to excite uneasy sensations, more or less extensive* Hence, a too strong propensity in the governments of nations to anticipate and mortgage the resources of posterity, rather than encounter the inconveniences of a present increase of tees.
But, this policy, when not dictated by very peculiar circumstances, is of the worst kind. Its obvious tendency
is, by enhancing the permanent burthens of the people, to produce lasting distress, and its natural issue is in
national bankruptcy.
It will be happy if the councils of this country, sanctioned by the voice of an enlightened community, shall be
able to pursue a different course.
Yielding to this impression, the Secretary proceeds to state, for the consideration of the House, the objects which
have occurred to him as most proper to be resorted to, for raising the requisite sum by taxes.
From the most careful view which he is able to take of all the circumstances that, at the present juncture, naturally enter into consideration, he is led to conclude, that the most eligible mode in which the necessary provision
can, at this time, be made, js, by some additional duties on imported articles.
This conclusion is made"with reluctance, for reasons which were noticed upon a former occasion, and from the
reflection that frequent and unexpected alterations in the rates of duties on the objects of .trade, by inducing uncertainty in mercantile speculations and calculations, are, really, injurious to commerce, and hurtful to the interests of those who carry it on.
The stability of the duties to be paid by the merchants, is, in fact,* of more consequence to them than their quantum, if within reasonable bounds.
_
. . .
It were, therefore, much to have been wished, that so early a resort to- new demands, on that class of citizens,
could have been avoided, and, especially, that they could have been deferred until a general tariff could have been
maturely digested, upon principles which might, with propriety, render it essentially stationary.
But, while there are these motives to regret, there are others of a consoling tendency, some of which indicate
that an augmentation of duties, at the present juncture, may have the effect of lessening some public evils, and producing some public benefits.
It is a pleasing fact, if the information of the Secretary be not very erroneous, that the improved state of the
credit of this country enables our merchants to procure the supplies which they import from abroad, upon much
more cheap and advantageous terms than heretofore; a circumstance which must alleviate to them the pressure of
somewhat higher rates of duty, and must contribute, at the same time, to reconcile them to burthens, which, being
connected with an efficacious discharge of the duty of the- Government, are of a nature to give solidity and permanency to the advantages they enjoy under it.
It is certain, also, that a spirit of manufacturing prevails at this tiine, in a greater degree than it has done at any
antecedent period; and, as far as an increase of duties shall tend to second and aid this spirit, they will serve to promote essentially the industry, the wealth, the strength, the independence, and the substantial prosperity of the
country.
The returns for a year, ending with the thirtieth of September last, an abstract of which is m preparation to be
communicated to the Legislature, evince a much increased importation, during that year, greater far than can be
referred to a naturally increasing demand, from the progress of population, and announce a probability of amore
than proportional increase of consumption; there being no appearance of an extraordinary abundance ofgoods in the
market. If, happily, an extension oi the duties shall operate as a restraint upon excessive consumption, it will be a
salutary mean of preserving the community from future embarrassment, public and private. But, if this should not
'be the case, it is at least prudent in the Government to extract from it the resources necessary for current exigencies, rather than postpone the burthen to a period when that very circumstance may cause it to be more grievously
felt.
These different considerations unite with others, which will suggest themselves, to induce, in the present state of
things, a preference of taxes on imported articles to any other mode of raising the sum required.
It is, therefore, respectfully submitted, that the existing duties on the articles hereafter enumerated, be repealed,
and that, in place of them, the following be laid, viz:
WINES.
Madeira, of the quality of London particular* per gallon,
Ditto
London market, per do.
Other Madeira wine,
"
per do.
Sherry,
per do.
St. Lucar,
per do.
Lisbon,
per do.
Oporto,
per do.
Teneriffe and Fayal,
per do.
All other wines, 40 per centum ad valorem.

CENTS.

-

56

•

-

49
40
33
30

25
25

20

FINANCE.

160

1179S.

SPIRITS.
Of
Of
Of
Of
Of
Of

Those distilled wholly or chiefly from grain.
the first class of proof!,
per
the second
do.
per
the third
do.
per
the fourth
do.
per
the
fifth
do.
per
the sixth
do.
per

gallon,
do*.
do.
do.
do.
do.

CENTS.

28
29
31
34
40
50

OTHER DISTILLED SPIRITS.
Of
Of
Ot
Of
Of

the
the
the
the
the

second class of proof, and under,
third
do.
fourth
do.
fifth
do.
sixth
do.

per
per
per
per
per

gallon,
do.
do.
do.
do.

Beer, ale, and porter,
per gallon,
Steel
per cwt.
Nails,
per lb.
Cocoa,
per dol
Chocolate,
per do.
Playing cards,
per pack.
Shoes and slippers, of silk,
_
_
.
Shoes and slippers of stained or colored leather, (other than black) for men and women,
Ditto ao. for children,
•
*
All other shoes and slippers (for men and women) clogs and golo shoes,
All other shoes and slippers for children,
-

24
27
31
37
45
8
100
2
2
3
25
20
10
7
10.
7

ARTICLES AD VALOREM.
~ fChina -wares,
> Looking-glass, window* and other glass, and all manufactures of glass, black quart bottles excepted,
^ Pistols
Muskets,
*
>
S s Swords, cutlasses, hangers, -and other fire and side arms,
- Starch,
Hair powder,
Wafers,
LGlue.
"Cast, slit, and rolled iron, and generally all manufactures of iron, steel, tin, pewter, copper, brass, or of which
either of these metals is the article of chief value (not being otherwise particularly enumerated)
Cabinet wares,
Leather, tanned and tawed, and all manufactures of leather, or of which leather* is the article of chief value,
(not being otherwise particularly enumerated)
Medicinal drugs, except those commonly used in dying,
Hats, caps, ana bonnets, of every sort,
Gloves and mittens,
Stockings,
Millinery, ready made,
Civ Artificial flowers, feathers, and other ornaments for women's head dresses,
Fans,
Dolls, dressed and undressed,
Toys,
Buttons of every kind,
Carpets and carpeting, mats and floor cloths,
Sail cloth,
Sheathing and cartridge paper,
All powders, pastes? balls,balsams, ointments, oils,-waters, washes, tinctures, essences, liquors, or other preparation or composition, commomly called sweet-scents, odors, perfumes, or cosmetics, *
All dentifrice, powders,tinctures,preparations^ or compositions, whatsoever, for the teeth of gums,
Printed books, except those specially imported for a college, academy, or other public or incorporated seminary
of learning, or institution, which shall be wholly exempted from duty.
The foregoing duties to be permanently established, and to be appropriated, in the first place, to the payment of
the interest of the public debt; m the second, to such other grants and appropriations, as have been, heretofore, madej
and in the third, to the purposes of the act for making further and more effectual provision for the protection of the
frontiers of the United States.
An addition of two and a half per cent ad valorem to be made to the duty on all goods, heretofore rated at five
per centum ad valorem.
This addition to be temporary, and accordingly to be so established as that it shall not continue longer than till
the present Indian war shall terminate, and the expenses of carrying it on shall have been defrayed, which will of
course include the reimbursement of any sums that may have been borrowed by way of anticipation of the product
of the duties.
Itis represented that the present duty on salt operates unequally, from the considerable difference in weight, in
proportion to quantity* of different kinds.of salt; a bushel weighing from about 56 to upwards of 80 weight. It would
have an equalizing effect, if the bushel were defined by weight; and if 56 pounds were taken as the standard, a valuable accession to the revenue would result.
This regulation is, therefore, submitted as a resource upon the present occasion. The rate of duty to remain
asitis.^
It will be a reasonable accommodation to trade, if it is made a part of this arrangement, to extend the credit for
the duty on salt to a longfer term. Itis an article, which, from the circumstances of its importation, frequently lies
on hand for a considerable time; and in relation to thefisheries*is usually sold upon a credit of several months.
. Some remarks may be proper in regard to the proposed duties. Those on spirits and wines may appear high.
They are, doubtless, considerable. Butthere are precedents, elsewhere, of much higher duties on the same articles.
And it is certainly, in every view, justifiable to make a free use of them for the purpose of revenue.
Wines, generally speaking, are the luxury of classes of the community, who can afford to pay a considerable
duty upon them.
It has appeared advisable to adhere to Hie idea of a specific duty per quantity, on all the species of wines in most
common consumption in the country, and those most susceptible of precise designation, as affording greatest certainty to the revenue; and to adopt a general ad valorem rate for other kinds, proportioned to the specific duties.
This rate is 40 per cent.

1792.]

ADDITIONAL SUPPLIES FOR 1792.

161

The distinction has proceeded from the difficulty of a precise enumeration of ail the other kinds of wine, which
are, and may be? imported, and of such an adjustment of specific rates, as will bear some reasonable proportion to the
value of the article. The present lowest rate of duty on wines amounts to" 200 and 300 per cent, on the value of
certain kinds, which may be considered as equivalent to a prohibition.
While, therefore, ideas of proportion will be better consulted than heretofore, by the proposed arrangement, it is
probable that the revenue will be benefitted, rather than injured, by a reduction of the duties on low priced wines.
The considerations which render ardent spirits a proper object of high duties, have been repeatedly dwelt upon.
It may be added, that it is a familiar, and a just remark, thafthe peculiarly low price of ardent spirits, in this country, is a great source of intemperance.
T o bring the price of the article more nearly to a level with the price of it in other markets, by an increase of
duty, while it will contribute to the advancement of the revenue, cannot but prove, in other respects, a public benefit.
The rates proposed will be still moderate, compared with examples in other countries; and the article is of a
nature to enable the importer, without difficulty, to transfer the duty to the consumer.
A discrimination is suggested in respect to duties on spirits distilled from grain. T o this, there have been two
inducements; one, that the difference in the duty is conformable to the difference between the cost of the grain spirits usually imported, and that of West India rum.^ Another, that it is in a particular manner the interest of the
United States to favor the distillation of its own grain, in competition with foreign spirits from the same material.
In the second division of spirits, the first class ot proof is dropped, because none of it comes from the West Indies,
and because any other spirits, usually imported, which may be of so low a proof, are higher priced, even than some of
the higher proofs of West India spirits. The dropping of that class of proof, therefore, in this case, is favorable to
the revenue, and favorable to equality.
Several of the other specific duties which are proposed, besides the inducements to them as items of revenue, are
strongly recommended by considerations which have been stated in the report of the Secretary, on the Subject of
manufactures. The same report states inducements to a 15 per cent, duty on some of the articles which are mentioned? as proper to be compnsed under that rate.
With regard to china and glass, there are two weighty reasons for a comparatively high duty upon them. The
use of them is very limited, except by the^ wealthier classes; afid both their bulk, and liability to damage in transportation, are great securities against evasions of the revenue. It will, however, merit consideration, whether, for
the accommodation of importers, a longer term of credit ought not to be allowed on these articles.
A duty of two cents per pound on cocoa is less, in proportion to the value, than the present duty on coffee. As
an extensive article of consumption, it is a productive one of revenue.
The duty on playing cards can give rise to no question except as to the practicability of a safe collection. In
order to this, it will be proper to superadd certain precautions, which will readily occur in regulating the details of
a bill for the purpose. A similar attention will be requisite in regard to the duties on wines. The employment of
marks and certificates may advantageously be extended to this article.
The rate of 10 per centum ad valorem, it is hoped, will not be deemed immoderate in relation to the articles to
which it is proposed to apply i t It is difficult to assignrules forwhat ought to be considered as a just standard. But,
after the best consideration which the Secretary has been able to bestow upon it, he cannot discover that any real
inconvenience is likely, permanently, to result from the extension of that rate to the cases proposed.
The addition of 2* per cent, to/the duty on the mass of article now rated at five, will constitute an important,
though not an excessive augmentation. Nevertheless, it is proposed that it shall be only temporary;# and there is
reasonable ground of expectation, that the cause for having recourse to it will not be of very long continuance.
It will not have escaped the observation of the House, that the duties which were suggested in the Secretary's
report on that subject, as encouragements to manufactures, are, for the most part, included among the objects of this
report
' It may tend to avoid future embarrassment, if such abolitions and drawbacks as shall be deemed expedient,
with a view to promoting manufactures, shall accompany the establishment and appropriation of whatever further
duties may .be laid, for the object in contemplation. And it may be found convenient to qualify the appropriation of
the surplus which is to be applied to that object, so as to let m such other appropriations, during the session, as
occurrences may suggest.
An estimate of the additional Tevenue which may be expected from the proposed duties is subjoined.
It will occur to the House, that the credit allowed for the duties will require an anticipation of their product by
a temporary loan, for which provision in the law will be requisite.
All which is humbly submitted.
A L E X A N D E R H A M I L T O N , Secretary of the Treasury.
Estimate qf probable additional revenue from the proposed duties.
Madeira wine, 300,000 gallons, average increase 12 cents per gallon,
Other wines, 700,000 gallons, average increase 3 cents per gallon,
Distilled spirits, 3,600,000 gallons, average increase, allowing for proposed deduction from the
duties on domestic spirits, 2 cents, Salt, from the equalizing regulation proposed, will probably yield £ more, or 2 cents per bushel
on 2,000,000 bushels,
Malt liquors^ 200,000 gallons, at 2£ cents,
Nails and spikes, 1,800,000 pounds, at 1 cent,
Cocoa, 800,000 pounds, at 1 cent,
Playing cards, 20.000, at 15 cents,
Other enumerated articles ad valorem, at 15 per cent,
Increased duty on articles rated permanently at 10 per cent, ad valorem, computed at 2 millions
of dollars in value, at 3 per cent.,
Temporary addition of 2£ per cent on the articles now rated at 5, computed on 10,000,000 of
dollars,
-

$36,000
.21,000
72,000
40,000
5,000
18,000
8,000
3,000
10,000
60,000
250,000
$523,000

FINANCE.

162

2 d CONGRESS.]

NO.

11792.

37.

R E M I S S I O N OF

[ 1 s t SESSION.

DUTIES.

COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, APRIL 20, 1792.

The Secretary of the Treasury, to whom was referred the memorial of Eliphalet Ladd, respectfully makes the following report thereupon:
It has been made a question, whether, under the laws of the United States, as they now stand, duties are payable
on goods imported in vessels which have suffered shipwreck in the act of transportation. A suit, in which this question is involved, is depending in.one of the courts of the United States.
But the terms of the lawliave rendered it the duty of the officers of the customs to advance the claim, which
has been done on all the occasions that have hitherto occurred.
The casualty of shipwreck is so affecting a calamity, and is usually attended with such considerable loss to the
concerned, that the exacting from the sufferers the public dues on the articles which escape, is apt to be regarded as
partaking of severity and oppression.
The provision for the case of damaged goods is not, always, a sufficient remedy. It may happen that the goods
saVed are not damaged, though a large proportion may have been entirely lost.
Itwbuld seem, upon the whole, expedient, either entirely to remit the duties in every case of shipwreck, or to
vest somewhere a power, either to remit, or abate, according to the circumstances of each case.
The last would best consist with a due apportionment of the degree of relief to the degree of suffering. From the
rareness of the casualty, the loss to the revenue, from either arrangement, could not be very material.
The case stated in the petition appears to be a strong one for relief.
All which is humbly submitted.
A L E X A N D E R H A M I L T O N , Secretary of the Treasury.
T R E A S U R Y DEPARTMENT, April 19, 1792.

2d

CONGRESS.]

NO.

SINKING

38.

[2d

SESSION.

FUND.

COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, NOVEMBER 19, 1792.

The Vice President of the United States and President of the Senate, the Chief Justice, the Secretaiy of State,
the Secretary of the Treasury, and the Attorney General, respectfully report to the Congress as follows:
That,pursuant to the act,entitled " A n act making provision forthereduction of the public debt," and in conformity
to resolutions agreed upon by them, and severally approved by the President of the United States, they have, since
their last report, caused purchases of the said debt to be made, through the agency of Samuel Meredith, Treasurer
of the United States, and William Seton, Cashier of the Bank of New York, respectively, to the amount of three
hundred and twenty-five diousand three hundred and seventy-eight dollars and sixty-two cents, for which there
have been paid two hundred and forty-two thousand six hundred and eighty-eight dollars and thirty-one cents, in
specie, as will more particularly appear by the several documents herewith submitted, marked A , B, C.
That, pursuant to the act, entitled " An act supplementary to the act making provision for the debt of the United
States," and in conformity to resolutions agreed upon by them, and severally approved by the President of the
United States, they have also caused purchases of the said debt to be made, through the agency of Samuel Meredith,
Treasurer of the United States, to the amount of thirty-eight thousand seven hundred and fourteen dollars and
fifty-one cents; for which there have been paid twenty-five thousand nine hundred and sixty-nine dollars and
ninety-six cents,in-specie, as will more particularly appear by the document herewith submitted, marked D.
An abstract of the whole of which purchases is contained in the statement E, herewith also reported, amounting
to three hundred and sixty-four thousand and ninety-three dollars and. thirteen cents; for which there have been
paid two hundred and sixty-eight thousand six hundred and fifty-eight dollars and twenty-seven cents, in specie.
That the said several documents, marked A , B, C, D, (which are submitted as part of this report) shew in detail
the places where, the times when, the prices at which, and the persons of whom, the purchases aforesaid have been
made.
That the purchases now and heretofore reported, amount together to one million four hundred and ninety-five
thousand four hundredand fifty-seven dollars and -eighty-nine cents; for which there have been paid*, nine hundred
and sixty-seven thousand eight hundred and twenty-one dollars and sixty-five cents, in specie^ and for which credits
have been passed on the boots of the treasury, as will be more particularly seen by the certified statement herewith also submitted, marked F.
On behalf of the Board.
T H : JEFFERSON.

S I N K I N G FUND.

1793.]

163

Statement of the purchases of Public Stock by the Agents named in the Act for the reduction of the Public BebU
ASSUMED

DATE.

BY

WHOM

PURCHASED.

1792
March 21 S. Meredith,
do.
do.
do.
do.
do,
do.
22
do,
do,
do.
do.
23
do.
27

OF W H O M

PUR-

CHASED.

WHERE

PUR-

CHASED.

PRICE.

Amount of
deferred
stock.

s. d.
Fran. Ingraham, Philadelphia, 12 0
12 6
Edward Carrell,
' do.
12 0
James Lysle,
do.
12 6
George Eddy,
do.
11 10
Isaac Bronson,
do.
12 0
do.
do.
12 6
do.
James C. Fisher,
«
do.
Thos. McEwen,
it
do.
George Eddy,
u
do.
John Oldden,
44
•do.
Isaac Bronson,
44
do.
Israel Loring,

412 52
1,540 91

DEBT.

Amount of
three j e r
ct. stock.

721 '87
443 41

1,200 00
9,965 31
1,000 oo
2,000 00

DOMESTIC

Amount of
deferred
stock.

604 01
2,598 19
2,000 00
5,000 00
2,034 69
5*000 00

DEBT.

Amount of
three per
cent stock.

SPECIE
VALUE.

7,569 22 4,541 53
635 33
547 57
190 75
2,586 93
2,056 59 1,479 16
2,500 00 1,500 00
1,250 00
3,125 00
750 00
7,500 00
3,750 00
1,250 00

Dolls. 16,118 74 1,165 28 17,236 89 12,316 56 28,915 52
S A M U E L
TREASURY

OF T H E U N I T E D

STATES,

M E R E D I T H ,

Treasurer of the United States.

Philadelphia, ZUt March, 1792.

TREASURY DEPARTMENT,

Register's Office^ 15th November, 1792.

I certify that the foregoing is a true copy from the original, filed in this office.
JOSEPH

NOURSE,

Register.

B.

o*

Statement of the purchases of Public Stock9 by the agents named in the actfor the reduction of the Public Debt.
ASSUMED DEBT.
DATE.

1790.
April 9
10
11

13
14

16
17
18
19
21
25

BY WHOM PURCHASED.

Samuel Meredith,
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do',
do.
do.
do.
do.
do.
do.
do.
do.
do,
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do,
do.

OF WNOM PURCHASED.

Thomas Learning,
Joseph Boggs, William Campbell,
James McCrea,
Thomas Ketland, Jr.
Andrew Summers, Jr.
Isaac Bronson,
James McCrea,
Edward Fox,
do, do. Jeremiah Warder, Parker, & Co,
William Poyntell,
do.
do.
do.
do.
L e Roy & Bayard,
William Heysham,
do.
do.
John Wagner,
William Smith,
Clement Bid die,
George Eddy,
John J, Holmes,

WHERE PURCHASED.

Philadelphia,
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.

PRICE.

s. cL
12 6
12 0
20 0
12 0
12 6
12 6
12 0
a
20 0
19 11|
19 9
12 0;|

19
11
11
11
19
11

Register's Office, 15th November,

6,000 00

12

AMOUNT OF
AMOUNT OF
6 PER CENT. 3 PER CENT.
STOCK.
STOCK.

10,000 00

4,000 00

3,000 00
5,000 00

4

5,500 00

9,000 00

13,015 28

6,500 00

TREASURY OF THE U N I T E D STATES,

1792.

SAMUEL

26,327 14

62,673 90

5,000 00
11,433 18

536 4ft
3,000 00

1,000 00

1,448 '46
19,466 07

937 50
1,800 00
6,000 00
1,200 00
3,125 00
7,500 00
6,000 00
2,400 00
7,466 07
2,996 87
2,962 50
602 08
1,768 75
3,031 25
5,431 25
319 65
1,340 16
1,787 50
987 50
1,787 50
1,191 67
2,038 65

1,000 00

2,281 13
3,000 00

SPECIE
VALUE.

2,000 00
1,857 47

566 82
7,466 07
3,000 00
3,000 00

AMOUNT OF
DEFERRED
STOOK.

1,500 00

2,000 00

9
11
9
11
9
11

«

AMOUNT OF
DEFERRED
STOCK.

3,000 00

11 H
12 14

Dolls.

TREASURY DEPARTMENT,

AMOUNT OF AMOUNT OF
6 PER CENT. 3 PER CENT.
STOOK.
STOOK.

DOMESTIC DEBT.

12,281 13

Philadelphia, April 25th, 1792.
Treasurer of the United States.

MEREDITH,

I certify that the foregoing is a true copy from the original filed in this office.
JOSEPH NOURSE,

Register.

C
O

SINKING FUND.

1792.1

165

c.
Statement qf the purchases of Public Stockby the Agents named in the act for the reduction of the public debt.

By whom
purchased.

Of whom purchased.

Wm. Seton. Bernard Hart for L .
Bleecker,
New Yorkdo.
Richard Piatt, per Sutton
& Hardy, do.
do.
Benjamin Winthrop,
do.
Jacob Sebor, Jun. do.
do.
Gabriel Furman,. do.
do.
6
0. Bowen, for E. Parker
do& Co.
"
do. *
do;
James R. Miller,
do.
do.,
Sutton, & Hardy,
do.
do.
George Sutton,
« do.
do.
Edward Parker & Co.
^ do.
do.
Norman Butler,
* dp.
do.
v do.
George Lewis,
do.
William Rodgers,
do.
do.
Joseph Pitcairn, do.
do.
Comfort Sands,
do.
do.
John Peters,
do.
do.
Charles M'Evers,
do.
do.
John & F. Atkinson,
do.
do.
F. & P. Rhindander,
do.
do.
James M'Evers,
«
do.
do.
Theodosius Fowler & Co.
do."
do.
William Steely
do.
do.
Thomas White,
-v
do.
do.
John R . Livingston,
do.
do.
B.Livingston,
•< v do.
do.
William Henderson,
do.
1R- > do.
1
Richard Piatt,
do.
Do. for Man Salter, .
do.
do.
Daniel Penfield for Cortis
do.
& Olney, and S. Ward &
Brothers, do.
do.
Geo. Lewis, for G. Storer,
do.
do.
George Lews, *
- d o .
do.
Georee Service, do.
Effl Lawrence, for himself
' "
do.
and John LawTence, [ do.
Effingham Embree,
do.< ,
do.
Leonard Lespenarae,
do.
do.
Peter Anspach,
do.
do.
John Graham, t
do.
do.
Henry Sadler,
do.
do.
GeorgeTurnbulL
do.
do,
0
Andrew Stockholm,
do.
do.
Jacob Reid,
do.
do.
Gabriel Furman,
do.
do.
Freeman Clarkson,
do. v
do.
Corn's C*Bogart, for himdo.
self and John Henry, l do.'
Paul R. Randall, do.
do,
William Rhindander,
do.
do.
Robert Gilchrist,
do1.
do.
Francis Childs,
do.
do.
John Bush,
do.
do.
Peter Curtenius,
do.do.
Richard Smith, Jun.
do.
do.
Isaac Clason,
do.
do.
Charles P. RodgerS,
do.
do.
Jonas Stansbury, :
do.
do.
Sayns Crane,
- t
, do.
do,
J. Delafield, for T . Rudy,
do.
do.
1 do.
Thomas Salter, do.
H. B. Piergont,
do.
do.
James Sebring,
do.
do.
Theodosius Van Wyck,
do.
do.
Nicholas Fish,
do.
do.
W . Rodgers. for D. Baddo.
cock, Jolm Wilkes, Chas.
Taylor, H. P. Stark, and
Car. Pollock,
do.
D'l Badcock, for J.Wilkes,
do.
do.
Nicholas Gouverneur,
do.
do.
1
6
Ephraim Hart,
do.
do.
John Jacob Astor, do:
do.
Robert C. Livingston,
do.
do.
Joseph Winter,
do.
do.
do.
do.

22

Obadiah Bowen,
John Templeman

Amount of Amount of Amount of
per cent, per cent, deferred
1 stock.
stock.
stock.

Where
purchased.

do.
do.

s. d.
2,500

2 0 "0

20,000
1,200
800

a

«*
a

11,104 86

C(

2,485
1,562
9,500
.442
405
4,200

t;
«

a
(6
«

52
50
08
04

12 .6
12

6C

20

<6

1,600

0
0

12 6
20 0
12 6
12 0

1,666 67
993 10
734 12

1,666 66
1,600

l,t)00

1,600,
1,666 68

1 2 *6 1
a-

46
12 0

12

cc

20

1,600
1,666 69

1,666 66
1,666 67

0

349 45

0

12

1,600
1,600

790 34

0

3,333 33

12 6
(6

20

0
cc

12 0
20 .0
12 0
a
20 0

1,000
2,000
1,666 66

1,000

1,666 66
1,666 66 ,
1,000
1,000

12 0

1,666 67

tt

2 0 "0
C
b

1,666 66

1,000
2,000

u

1,000*

12

1,600

20 0 1,000
12 0
U
12

1,666 67

1,666 66

€

1,600

12 0
20 0 i;ooo
20 Q, 1,000
12

1,600
1,600

1,666.66

~

12 0
20 .0 1,000
12, 0
a
20 0
680 60
u
365 23
12 ,0

a
a

1,666 66
1,666 66
1,143 00

3,643 59

9,290 48
2,709 52

12 6
20 0 1,027
a
1,000
J2and
12
t£
12 6

1,600

10,617
,1,666 33
2FR

1,065 25
•304 <37

571 89

l,3

1,600

STATEMENT

Date.

[1792.

FINANCE.

166-

" By whom
purchased.

Of whom purchased.

C.—Continued.

Amount of Amount of Amount of
Where Price. 6 per cent, 3 per cent, deferred Specie value*
purchased.
stock.
stock.
stock.

1792.
s. d*
April 16 Win. Seton. James Davenport, for Jas.
, Watson and D. Penfield, New York. 20 0
20 and
do.
Gulian Verplanck,
do.
12 6
20 0
do.
Pas. N . Smith,
do.12 0
do.
John M6tley?
do.
12 6
do.
Benjamin Seixas,
do.
do.
Jacob Morton,
do.
12 0
do.
George Sutton,
do.
12 0
do.
P. Wetmore & Brothers, do.
17
f
12 6
Abijah Hammond,
do.
do.
20 0
do.
R. Bowne, for Thos. Eddy,
do.
12 0
do.
Nicholas Low,
do.
do.
Bernard Hart,
I2and
do.
12 6
20 0
do.
Philip Hi Livingston,
do.

2,000

2,000
3,000
1,000

_
1,666 67
1,666 66
1,666 67

_

1,000

10,000
-

1,699 64
1,600
-

1,600

1,654 54
1,531 68

-

4,000

130

9,250
1,000
1,000
1,062 27
1,000
1,000
1,000
1,000
1,000
1,000
992 72
1,000 25
4,000

Total 86,790 65 56,691 53 48,469 35 151,098 89
RECAPIT

LATION.

86,790 65
34,014 91
30,293 33

86,790 65 dollars 6 per cent, stock a 20s.
56,691 53 do. 3 do.
a 12s.
48,469 35 do. Deferred
do. a 12s. 6d.
Total specie value,

191,951 §3

$151,098 89

Errors excepted.
N E W Y O R K , May

5 t h , 1792.

W M . SETON.
TREASURY DEPARTMENT,

Register's Office, 5th November, 1792.

I certify that theforegping is a true copy from the original filed in this office.
JOSEPH NOURSE, Register.

D.
Statement of the purchases of the public stock by the agents named in the act for the reduction of the public, debt.
»

Date.

By whom purchased.

Of whom purchased.

f
1792.
October 29,
&
4
«
"
30,
«
31,
«
ft

Deferred 6
Where Purchased. per cents,
domestic &
assumed.

Price. SpecieYalue.

$

Samuel Meredith,
Ditto
Ditto
Ditto
Ditto

William Lynch,
Ditto
Thos, M./Willing,
Thomas Biddle,
Robert Ralston,'

Philadelphia,
Ditto
Ditto
Ditto
Ditto

241 20 13s. 4<L
473 31 13s. 5d.
20,000 00
Do.
15,000 00
Do.
3,000 00
Do.
$38,714 51

TREASURY DEPARTMENT, Registers

160 80
317 50
13,416 66
10,062 50
2,012 50
$£5,969 96

Office, 15th November, 1792.

JOSEPH NOURSE, Register.

SINKING FUND.

1793.]

167

E.

General Statement qf the purchases of public stock by the agents named in the act passed the 12th of August, 1790,
for the reduction of the public debt.
Total
By wh«m pur- Where Amountfcf 1 Amount Assumed Amount Am'nt of Amount of
Total
purchased. assumed 6 of assum- 6 per cJts. of 6 per 3 percent, deferred amount of amount qf
chased.
per cent. ed 3 per deferred. ct st'k. stock.
stock. stock pur- in , specie
cent.
chased. paid for the
purchases.*
A Samuel Meredith, Treasurer, from Mar.
21st to 27th,
1792,
Philadelp'a,
1,165 28 16,118 74
12,316 56 15,736 89 45,337 47 28,915 52
B Do. from April
9th to 25th,
19,466 7 9,000 00 14,515 28 6,600 00 12,281 13 26,327 14 88,089 62 62,673 90
Do.
1792,
C William Seton,
o»
from the 2d to
the 17th April,
1792,
191,951 53 151,098 89
New York, 86,790 65 42,409 22 12,361 30
14,282.31
36,108 05
D Sam. Meredith,
from the 29th
Octoberto31st
do. inclusive, Philadelp'a,
10,668 36
38,714 51 25,969 96
28,046 15
'i
106,256 72 52,574 50 53,663 68 6,500 00 38,-880 00 106,218 23 364,093 13 268,658 27
TREASURY DEPARTMENT, Register's

Office, 15th November, 1792.
JOSEPH NOURSE,

Register.

F.

1

The President of the Senate, the Chief Justice, the Secretary of State:

DR.

rtiuirf -fbtfi M///1MMMI f J V yM # />r -fj\n / / i f / » 7 .v/n/<ia
/ Mi //
v * //

T I -h % -/ /n i AJU'MK
VM t / f k t ni
CR.

6
!

1791.
Oct. 25, By extinguishment of the public debt, for
amount passed to their credit, in consequence of purchases made to this date, per
account, rendered to the Trustees, and by
them stated to Congress^ in their first ana
second reports, on the extinguishment of the
; public debt, viz:
$311,123 44
Domestic, 6 per cent, stock,
510,619 76
Deferred do. , 309,621 56
3 per cent. do.
By the following purchases made since said
1792.
reports to Congress, viz:
Oct, 27. For amount, from 25th October, 1791, to this
date/
Domestic 6 per cent, stock,
$6,500 00
Deferred
do.
78,172 08
3 per cent. do.
38,&80 00
Assumed 6 per cent. do.
Deferred
do.
3 per cent. <do.

<

106,256 72
42,995 32
52,574 50

Nov. 13. By amount, from 2rth October last, to this date,
h inclusive* viz:
„
,
Domestic deferred stock,
28,046 15
Assumed
do.
10,668 36

1,131,364 76

123,552 08

201,826 54

38,714 51

,364,093 13
$1,495,457 89
TREASURY DEPARTMENT, Register's

Office, 15/A November, 1792.

I certify that the trustees, abovementioned^ have credit in the books of the several descriptions of stock, for the
several sums above stated, amounting, in the aggregate, to one million four hundred and ninety-five thousand four
hundred and fifty-seven dollars and eighty-nine cents I
„ JOSEPH NOURSE,

Register.

26-

FINANCE.

[1792.

G.
Br, 5" Samuel Meredith, Agent to the Trustees named in the act passed on the 12th'day of August, 1790,
" C
for reducing the Public Debt, in account current with the United States.
AMOUNT OF
DEBT PURCHASED.

T o amount
of the following warrants drawn
m his favor,
on account
of said agency, since the
19th Sept.
1791, viz:
Warrant No.
1265, dated
Sept'r. 30,
1791, for •
Warrant No.
1605, dated
March 31,
1792.
To
balance
due to Samuel Meredith. as ag't
to tnetrus-'
tees,onacc?t
ofpurchases
made up to
April 25th,
1792,

*

149,984 23

28,915 52

By balance due to Mr* Meredith, on account of purchases
made by him up to the 19th September, 1791, per report No. 1659, dated October 12, 1791,
By sundry accounts for the amount of purchases in the
domestic debt of the United States, made by him as
agent to the trustees, for reducing the public debt, from
the 2lst day of March, to the 25th day of April, 1792,
inclusive, viz: By funded 6 per cent stock, bearing
interest from April 1st, 1792, for amount of said stock,
purchased at 19$. 9d. per pound,
By funded 6 per cent, stock, assumed debt,
bearing interest from April 1st, 1792, for
amount of said stock, purchased at 20s. per
pound, "
13,466 07
Do. purchased at 19s. 11 £c?. per pound,
3,000 00
Do. purchased at 19s. 9c?. per pound,
3,000 00

149,984 23

6,500 00

19,466 07

By funded 3 per cent, stock, bearing interest
from April 1,1792, for amount of said stock,
purchased at 12s. per pound,
- 20,259 97
Do. purchased at lis. 10c?. per pound,
2,056 59
Do. purchased at lis. 9d. per pound, 2,281 13

6,418 75

19,425 44

«

i>>

24,597 69

10,165 28

By deferred 6 per cent, stock, assumed debt,
for amount of said stock, purchased at 12s.
6c?. per pound,,
Do. purchased atrl2s. 4c?. per pound,
Do. purchased at 12s. l£c?. per pound,
Do* purchased at lis. lid. per pound,
Do. purchased at lis. 9£c?. perpound, -

«

By funded 3 per cent, stocfc assumed debt,
bearing interest from April 1st, 1792, for
amount of said stock, purchased at 12s. per
pound,
.9,72187
Do. purchased at lis. 10c?. per pound,
443 41
By deferred 6 per cent, stock, for amount
purchased at 12s. 6c?. per pound,
33,670 07
Do. purchased at 12s* 4a. per pound,
, 1,857 47
Do. purchased at X2$i id. per pound, 1,000 00
Do. purchased at lis. 11 d. per. pound,
5,536 49'

62,673 90

SUMSPAID I N
SPECIE BY
THE AGENT.

42,064,03
18,185 56
1,448 46
5,000 00
3,000 00
3,000 00

14,715 93

6,095 49

26,090 13

18,846 68

$133,427 09

$241,573 65

30,634 02

$241,573 65

*

TREASURY DEPARTMENT, > Auditor's

Office, June Wh,

1792,

Stated and examined, per
DOYLE S W E E N Y .
COMPTROLLER'S OFFICE,

June

29, 1792.

Examined.
A . BRODIE.
TREASURY DEPARTMENT,

Register's Office, 15th November, 1792,
These are to certify, that the foregoing statements, by Doyle Sweeny, clerk in the Auditor's Office, of an account
current between Samuel Meredith, Esquire, agent to the trustees named in the act passed the 12th August, 1790,
and the United States, is a true copy of the original, filed in this office. *
JOSEPH N O U R S E , J f c ^ e r . '
H,
TREASURY DEPARTMENT, AUDITOR'S OFFICE,

June 18//*, 1792.

I hereby certify, that I have examined and adjusted an account between the United States and Samuel Meredith, agent to the trustees, named in the act of Congress, passed on the 18th day of August, 1790, for reducing the
domestic debt, for purchases of said debt made from the 21st day of March, to the 25th day of April, 1792, inclusive,
and^findthat, by the statement of his account of purchases, up to the 19th day of September last, a balance was due
to him as agent aforesaid, the sum of $149,984 23.
I -also find that the following warrants were drawn in his favor* on account of said, agency, since the 19th September, 1791, viz:
Warrant No. 1265, dated September 30th, 1791,
$149,984 23
1605, dated March 31,1792,
28,915 52
Amounting to

$178,899 75

S I N K I N G FUND.

1793.]

169

And that the following purchases have been made by the said agent, Within the period above mentioned; viz:
In funded six per cent, stock, bearing interest from 1st April, 1792, purchased at nineteen shillings and nine,pence
on the pound
~
•
"
"
&b,ouu uu
In funded six per cent stock, assumed debt, bearing interest from April 1st, 1792, purchased at 20s. on 13,466 07
3,000 00
Ditto! purchased at nineteen shillings and eleven pence three farthings on the pound,
3,000 00
Ditto, purchased at nineteen shillings and nine pence on the pound,
, " ,,
" *
In funded three per cent, stock, bearing interest from April 1st, 1792, purchased at twelve shillings on
20,259 97
the pound, ,
•
~
2,056 59
Ditto, purchased at eleven shillings and ten pence on the pound.
2,281 13
Ditto, purchased at eleven shillings and nine pence on the pound,
In fancied three per cent stock, assumed debt, bearing interest from April 1st, 1792, purchased at
9,721 87
twelve shillings on the pound,
443 41
Ditto, purchased at eleven shillings and ten pence on the pound, #
. ~
,
33,670 07
In deferred six per cent, stock, purchased at twelve shillings and six pence on the pound,
1,857 47
Ditto, purchased at twelve shillings and four pence on the poiind?
1,000 00
Ditto, purchased at twelve shillings and a half penny on the.pound,
5,536 49
Ditto, purchased at eleven shillings and eleven pence on the pound,
- .
In deferred six per cent, stock, assumed debt, purchased at twelve shillings and six pence on the
|8,185 56
pound,
\
;
J"
1,448.46
Ditto, purchased at twelve shillings and four pence on the pound,
5,000 00
Ditto, purchased at twelve shillings and one penny half on the pound,
3,000 00
Ditto, purchased at eleven shillings and eleven pence on the pound,
3,000 00
Ditto, purchased at eleven shillings and nine pence half, on the pound,
Amounting to

$133,427 09

For which amount, in the several kinds of stock* before mentioned, the trustees for the reduction of the publip
debt have obtained credit on the books of the treasury. And for which purchases the said agent has paid m specie,
at the rates before mentioned, agreeably to a particular statement of his account, herewith "transmitted, the sum ot
$91 589 42.
leaving a final balance due to the said agent, in specie, on account of purchases made by him up to the 25th day
of April, 1792, and for which he is to be credited, in a future settlement of his accounts, the sum ol $62, 673 90.
The statement and vouchees on which this report is founded are herewith transmitted, for the decision ot the
Comptroller of the Treasury thereon.

HARRISON, Auditor.

R

T o OLIVER WOLCOTT, Junr. Esqr. Comptroller of the Treasuryf
,,

COMPTROLLER'S OFFICE, June 29th, 1792.

Admitted and certified.
* OLIVER W O L C O T T , Jun. Comptroller.
TREASURY DETARTMENT, REGISTER'S OFFICE, 15th November,

I certify that the foregoingis a true copy of theoriginal, filed in this office. ^

^

1792.

N 0

-n C William Seton4 agent to the trustees named in the act,passed on thelZthday of August, 1790, fori
UK* £
reducing the public debt, in account current with the United States.
3

Cr

Amount of Sums in spedebtpurch'd. cie paid by
the agent.
To balance
By sundry accounts forthe amount of purchases in the
due to William
domestic debt of the United States, made by him, as
Seton, on acagent to the trustees for reducing the public debt, from
count ,of purthe 2d to the llih day of April, 1792, inclusive, per
chases made by
his account, dated May the 5th, 1792, viz:
him, up to the
By funded 3 per cent stock on the books of John Coch17th of April,
ran, Commissioner of Loans for the State of New York,
$151,098 89
1792,
and transferred to the books of 'the treasury, for
amount of said stock, bearing interest from April 1st,
1792, purchased at 12 per cent on the pound, By deferred 6 percent, stock on the books of ditto, and
transferred as above, for amount of said stock, purchased at 12s. 6c?. on the pound, '
By funded 6 per cent, stock, assumed debt, on the books of
ditto, and transferred as above, for amount of said
stock, bearing interest from April 1st, 1792, purchased
at 20s. on the pound,
„ \ ,
By funded 3 per cent, stock, assumed debt, on the books
of ditto, and transferred as above, for amount of said
stock, bearing interest from April 1st, 1792, purchased
# at 12s. on the pound,
•
By1 deferred 6 per cent, stock, assumed debt, for amount
of said stock, purchased at 12s. 6d, on the pound,

$14,282 31

8,569 38

36,108 5

22,567 52

86,790 65

86,790 65

e
42,409 22
12,361 30

25,445 53
7,725 81

$191,951 53 $151,098 89
TREASURY DEPARTMENT, Auditor's Office, June mh, 1792.
Stated and examined, per
June 30th, 1792*
Examined by

DOYLE

SWEENY.

COMPTROLLER'S OFFICE,

HENRY

KUHL.

FINANCE.

170-

[1792.

•
TREASURY DEPARTMENT, Register's Office, 15th November, 1792.
I certify ihat the foregoing statement, by Doyle Sweeny, clerk in the Auditor's office, of an account current
between William Seton^ agent to the trustees named in the act, passed 12th August, 1790, and the United States,
is a true copy of the original, filed in this office.
8
^
'
JOSEPH NOURSE, Register.
J.
TREASURY DEPARTMENT,

Auditor's Office^ June 30,

1792.

I hereby certify, that I have examined ahd adjusted an account between the United States and¥ William Seton,
agent to the trustees named in the act of Congress, pased on the 12th day of August, 1790, for reducing the domestic
debt for purchases of said debt, made from the 2d to the 17th day of April, 1792, inclusive, and find that the following purcnases have been made by him, within the said period, viz:
In funded 3 per cent, stock, on the books of John Cochran, commissioner of loans for the State of
New York, and transferred to the books of the treasury,for amount of said stock, bearing
interest from April 1st,. 1792, purchased at twelve shillings on the pound,
In deferred 6 per cent, stock, on the books of ditto, and transferred as above for amount of said
stock, purchased at twelve shillings and six pence on the pound,
In funded six per cent, stock, assumed debt, on the books of ditto, and transferred as above for
amount of said stock, bearing interest from April 1st, purchased at twenty shillings on the
j
pound,
In funded three per cent, stock, assumed debt, on the books of ditto, and transferred as above
for amount of said stock, bearifig interest from April 1st, 1792, purchased at twelve shillings on
the pound,
- - „
_ •
_
t
In deferred six per cent, stock, assumed debt, on the books 9f ditto, and transferred as above tor
amount of said stock, purchased at twelve shillings and six pence on the pound,

14,282 31
36,108 05
86,790 65
42,409 22
12,361 30
$191,951 53

Amounting to

For which purchases the said agent has paid in specie, at the rates before mentioned, agreeably to
r
a particular statement of his account, herewitn transmitted* the sum of
$151,098 89
Which sum of one hundred and fifty-one thousand and ninety eight dollars and eighty nine cents, in specie, is
due to the said agent, and for which he is to be credited in a future settlement of his accounts.
The statement and documents on which this report is founded are herewith transmitted, for the decision of the
Comptroller of the Treasury thereon.
.
,
. ,
„
W M . SIMMONS, Principal Clerk.
To OLIVER W O L C Q T T , Jr. Esq. Comptroller of the Treasury.
COMPTROLLER'S OFFICE, June 30, 1792.
Admitted.
OLIVER W O L C O T T , Jr. Comptroller.
To Jos. NOURSE, Esq. Register, fyc*
TREASURY DEPARTMENT, Register's Office, November 15, 1792.
I certify that the foregoing is a true copy of, the original,.filed in this office.
JOSEPH NOURSE, Register.
K.
DR.

£ Samuel Meredith Esq. Agent to the Trustees named in the act passed on the 8th day of May, 1792, ?
ith,
for reducing the Public Debt, in account with the United States„
$
Sums in
Amount of specie paid
' debt
, by the
purchased. Treasurer.

To amount of warrant, No. 1,864,
dated June 30th,
1792, drawn in his
favor, to discharge
the balance due to
him on account of
purchases of public debt, made up
to the 25th April,
$6*2,673 90
1792, To balance due
Samuel Meredith,
Esq. as agent to
the trustees, on
account of purchases made by
him, up to the 31st
October, 1792, in25,969 96
clusive,

By balance due to him on the settlement of his account,
for purchases made up to the 25th April, 1792, per report,
No. 2,575, dated June 18th, 1792,
'
-

62,673 90

By sundry accounts for the amount of purchases in the domestic debt of the United States, made by him as agent
for the trustees for reducingthepublicdebt, from the29th
to the 31st October, 1792, inclusive, per his accounts dated
30th October, and 7th November, 1792, viz:
By deferred six per cent, stock on the books of the treasury,
for amount of said stock, purchased at thirteen shillings'
241 20
and four pence on the pound,
Do. purchased at thirteen shillings and five
27,804 95
pence on the pound,

28,046 15

7,317 47

By deferred six per cent/stock, assumed debt, on the book's,
of the treasury, for amount of said stock, purchased at
10,668 36 18,652 49
thirteen shillings and five pence on the pound,

$88,643 86

1,714 51$88,643 86
COMPTROLLER'S OFFICE,

November 14, 1792,
A.

Stated and examined, per

TREASURY DEPARTMENT,

BRODIE.

Auditors Office, November 13, 1792.
DOYLE

SWEENY.

SPIRITS, FOREIGN AND DOMESTIC.

1792.]

TREASURY DEPARTMENT, Register's

171

Office, November

15,1792.

I certify that the foregoing statementby Doyle Sweeny, clerk in the Auditor's office, of an account current
between Samuel^MeredLith, agent to the trustees, named in the act passed the 8th May, 1792, and the United States,
is a true copy of the original^filed iu this office.
JOSEPH NOURSE, Register.
L.
TREASURY DEPARTMENT,

Auditor's Office, November 13,1792,

I hereby certify, that I have examined and adjusted an account between the United States and Samuel Meredith, Esquire, agent to the trustees named in the act of Congress, passed on the 2d day of May, 1792, for reducing
the domestic aebt, for purchases of said debt, made from the 29th to the 31st of October, 1792, inclusive, and find
that, by the statement of his account of purchases, up to the 25th of April last, a balance remained due to him, as
agent aforesaid, the sum of
$62,673 9Q
I also find that a warrant No. 1864. dated June 30th, 1792, was drawn in his favor to discharge the
balance due to him, on the purchases made up to the 25th April, 1792,
T
And that the following purchases have been made by the said agent, within the period above mentioned, viz: In deferred six per cent -stock, purchased at thirteen shillings and four pence on
the pound, „
Ditto purchased at thirteen shillings and five pence on the'pound,
In deferred six per cent, stock, assumed debt, purchased at ^thirteen shillings and five pence on
N
the pound,
•
Amounting to

$62,673 90

241 20
27,804 95
10,668 36
$38,714 51

For which amount, in the several kinds of stock before mentioned* the trustees for the reduction of
the public debt have obtained credits on the books of the treasury! And for which purchases
the said agent has paid in specie, at the rates before mentioned, agreeably to a particular statement of his account, herewith transmitted, the sum of
T

$25,969 96

Leaving a balance due to the said agent, in specie, on account of purchases made by him, up to the
31st October, 1792, and for which he is to be credited in a future settlement of his accounts,
the sum of
-

$25,969 96

The statement and vouchers on which this report is founded are herewith transmitted, for the decision of the
Comptroller of the Treasury thereon.
R. HARRISON, Auditor.
T o OLIVER WOLCOTT, Jr. ESQ. Comptroller of the

Treasury.

TREASURY DEPARTMENT,

Admitted and certified.

Comptroller's Office, November 14,1792.
O L I VER * W O L C O T T , Jr. Comptroller.

TREASURY DEPARTMENT, Register's Office, 15th November, 1792.
I certify"that the foregoing is a true copy of the original on file in this office.
JOSEPH NOURSE, Register,

2d CONGRESS.]

No.

S P I R I T S ,
*

F O R E I G N

39.

A N D

[2dSESSION.

D O M E S T I C .

COMMUNICATED TO CONGRESS, NOV. 22, 17921
UNITED STATES, November

22d, 1792.

Gentlemen of the Senate
ana of the House of Representatives;
I send you, herewith, the abstract of a supplementary arrangement, which Has'been made by me, pursuant to the
acts of the third day of March, 1791, and the eighth day of May^l792, for raising a revenue upon foreign and domestic distilled spirits, in respect to the subdivisions and officers which have appeared to me necessary, and to the allowances for their respective services to the supervisors, inspectors, and other officers of inspection, together with
estimates of the amount of compensations and charges.
GEO.

WASHINGTON.

Arrangement made by the President of the United States, pursuant to the act of Congress passed the third day qf
March, 1791, entitled "An act repealing, after the last ofJune next, the duties heretofore laid upon spirits imported from abroad, and laying others in their stead; and also upon spirits distilled within the united States, and
for appropriating the same;" and to the act of Congress, passed the eighth day of May last, entitled "An act
concerning the duties on spirits distilled within the United States."
Maryland has been subdivided into three surveys. No. 1 comprehends all the counties on the western side of
Chesapeake Bay, except Montgomery, Washington, Frederick? and Alleghany^ that is to say, St. Mary's, Calvert,
Charles, Prince George's, Anne Arundel, Baltimore, and Harford. No. 2 continues to comprehend the counties
of Montgomery, Frederick, Washington, and Alleghany, and remains under the inspection of Pliillip Thomas. No. 3
comprehends all the counties on the Eastern side of Chesapeake Bay, namely, Worcester, Somerset, Dorset, Tal-

172-u

FINANCE.

[1792.

bot, Queen Ana's, Kent, and Cecil. The compensations of the inspectorof the third survey, when appointed, are to
be the same as those in the second survey; that is? a salary of four hundred and fifty dollars per annum, and a commission of one per centum; but at present the duties of the inspector of the third survey are executed by the supervisor, who also performs the services of inspector for the first survey. The extent and number of the counties in the
District of Maryland, lying on the eastern side of Chesapeake Bay, their natural separation from the remainder of the
.district, the difficulty and delay of communication with the supervisor, in the winter season, and the number of seaports therein, are the principal considerations which induced the erection of them into a third survey.
Measures have been, taken to open one office ofinspection in every county of the several districts, pursuant to
the 2d section of the act concerning the duties on spirits distilled,in the United States; and authority has been given
to the supervisors to appoint officers for that purpose, denominated<fi auxiliary officers," in every county of a division
in tthich county a collector does not reside, whose services are to be compensated out of the emoluments of the
collectors of the revenue, in aid of whom they shall respectively act, a small allowance for rent and fuel only being
made to them out of the fund granted by law, as will hereinafter appear.
The compensations- have been established as follow:
The supervisors and inspectors, of surveys are to charge their commission on the gross amount of the revenue
collected within their respective districts and surveys, which variation, while it formed a part of the increase of their
compensations, in conformity \yith the enlargement of the fund assigned by law, was calculated to produce facility
and promptitude of adjustment in the public accounts.
The commission of the supervisors of New Hampshire, Connecticut, Vermont, New York, New Jersey, and
Pennsylvania, have been advanced to one per cent, being the same as was, heretofore, allowed to those of Virginia
North Carolina. South Carolina, and Georgia. The commissions of the supervisors of Maryland, North Carolina'
and South Carolina, have been advanced to one and one half per cent., and the commission of tne supervisors of
Georgia and Delaware have been advanced to two percent.
An addition of one hundred dollars per annum has been made to the salaries of each of the supervisors of Rhode
Island, New York,^Maryland, and South Carolina; and an addition of two hundred dollars per annum has been made
to the salaries of each of the supervisors of Massachusetts And Virginia.
The salary of the inspector of the second survey of South Carolina has been advanced to four hundred and fifty
dollars, and his commissions have been reduced to,one per cent, it having been deemed expedient to render the
compensations of the inspectors in that district similar and equal.
There are to be allowed to the inspectors of Survey^, and to the supervisors acting as inspectors, for signing certificates to accompanyjdomestic distilled spirits, two and one half cents; and to the collectors of the revenue, for
issuing the same, and marking the casks or packages, two and one half cents. There have also been allowed for
gauging domestic.-distilled spirits* six cents, unless the same shall be performed by an officer of inspection authorized
to marE the casks containing the spirits, or to sign certificates accompanying the same, in which case only two cents
and one half are allowed.
The sum of fifty cents is to be allowed to the collectors.of the revenue, for measuring and marking every still.
The commissions on spirits distilled from native materials, in places other than cities, towns, and villages, allowed
to the collectors, have been advanced to fiVeper centum.
\
The supervisors have been authorized to allow, if it shall appear really*necessary, a sum not exceeding forty
dollars each, to any ten collectors in the district of Massachusetts; the sum of fifty dollars each, to any two collectors in the district of New Hampshire; the sum of sixty dollars to one collector in Rhode Island.
The sum of sixty dollars each to
•
2 in Vermont.
In Connecticut,
, do.
4
In New Jersey,
do.
5
In New York,.
do."
2
In Pennsylvania,
do.
14
In Delaware,
, do.
3
1
In Maryland,
do.
9
In Virginia, including Kentucky, do.
24
In North Carolina,
do.
14
In South Carolina,
do.
8
In Georgia,
do.
This, allowance is made, with a view to the compensation of the collectors in divisions which are not yet productive, and in those wherein the revenue may be exposed to injury, without the timely establishment of a few offices
for the prevention thereof, after the manner adopted by the Legislature in the arrangement of the impost
The auxiliary officers are to be allowed the sum of twenty dollars per annum, for the considerations before mentioned, and the distribution of those officers has been made as follows, if the public service shall appear to require
them. There may be.
In the district of New- Hampshire,
^
2
In Rhode Island and Providence Plantations,
1
In Massachusetts, including Maine,
10
In Vermont,
*
4
Tn New York, b
*
10
In Pennsylvania,
£
a
In Maryland,
2
In Virginia, including Kentucky,
20
In North Carolina,
H
In South Carolina,
10
In Georgia,
5
For the services of the inspectors of the revenue for the ports, and of the persons deputed by them, (being the
officers of the customs) some additional compensation has been" deemed necessary. For signing, issuing, and
checking certificates to accompany teas, wines, and foreign distilled spirits, the sum of two cents and one half has
been allowed, which mil accrued) the inspectors of the revenue for ports, except in regard to the certificates for
foreign distilled spirits, for signing of which, one cent is to be allowed to the supervisors or inspectors of surveys;
and ior marking eacli cask or package of teas, wines, and foreign distilled spirits, the sum of two and one half cents
has been allowed, which will accrue to the deputies of the inspectors of the Revenue for the ports.
The paper E, which accompanies this statement, contains the estimate of the distribution of the fund assigned by
law, for compensations and expenses, on which the foregoing arrangement was founded.
The compensations have been made retrospective to the year following the 30th of June, 1791, in regard to domestic spirits, only so far as relates to the increase of the rate of commissions to certain of the supervisors, and to
the collectors; the allowance of the commissions of the supervisors and inspectors of surveys on the gross revenue;
the addition to the salaries of certain of the supervisors, and the measuring and markipg ot stills; but not as to the
allowances of the several sums of forty, fifty, and t sixty dollars to the collectors in certain situations and circumstances, nor the allowance for auxiliary officers, nor for marking domestic spirits, nor for gauging the same.
The compensations have also been made retrospective to the year following the 30th of June, 1791, so far as
regards the sum allowed for signing, issuing, and checking certificates for foreign distilled spirits, wines, and teas,
but not as to the sum allowed for rnarking the same.
The paper A , which accompames this statement, contains the estimate of the distribution of a part of the fund
assigned by law, as it has been made retrospectively, to the year following the last day of June, 1791.
GEO. W A S H I N G T O N .

SPIRITS, FOREIGN AN3> DOMESTIC.

1792,]

173

E.

AN ESTIMATE
for the compensations for, and contingent expenses on,Jhe collection qf the revenue on domestic distilled spirits, for one year following the SOtKJune, 1792; to which are added the compensations for,
mid expenses of the inspection3 marking, and certifying, teas andwines9for the same, by the officers of the,
revenue, pursuant to law.
Compensations to Supervisors.

ARTICLE 1,

NEW

HAMPSHIRE.

Supervisor's salary, as before
Commissions, one per cent, on the gross revenue, in lieu of i per cent, on the
sum received, on 3,000 dollars

$500
30

MASSACHUSETTS.

Supervisor's salary, in lieu of 800 dollars
Commissions, i per cent., as before, on the gross revenue, instead of a commission on the sum received, on 150,000 dollars, at i per cent.

1,000
750

CONNECTICUT.

Supervisor's salary, as before
- .
Commissions, one per cent, on the gross revenue, m lieu of i per cent, on the
sum received, 15,000 dollars, at one per cent. -

600
150

RHODE ISLAND.

Supervisor's salary, in lieu of 500 dollars
Commissions on gross revenue, in lieu of commission on the sum received,
50,000 dollars, at i per cent.
NEW

600
250

YORK.

Supervisor's salary, in lieu of 800 dollars
^
Commissions on grossrevenue,in lieu of commissions on money received, and
at 1 per cent., in lieu of i per cent, on 30,000 dollars

900
300

VERMONT.

Supervisor's salary, as before
.
. i
Commissions on gross revenue, in lieu m commissions on money received, at
one per cent., in lieu of h per cent., on 2,000 dollars

400
20

N E W JERSEY.

Supervisor's salary, as before
^
- ..
.
Commissions on gross revenue, in lieu of commissions on money received, at
one per cent., in lieu of £ per cent., on 3,000 dollars

400
30

PENNSYLVANIA.

Supervisor's salary, as before
, -,
,
Commissions on gross revenue, in lieu of commissions on money received, at
one per cent, m lieu of i per cent., on 80,000 dollars

800

DELAWARE.

Supervisor's salary, as before
r .
. .
Commissions on gross revenue, m lieu of commissions on money received, at
two per cent, in lieu of one per cent., on 1,000 dollars

400
20

MARYLAND.

Supervisor's salary, in lieu of 700 ddlars
Commissions on gross revenue, m lieu of commissions on money received, at
i per cent, in lieu of one per cent., on 20,000 dollars

800
300

VIRGINIA-

Supervisor's salary, in lieu of 1,000 dollars
_
" . •
»
Commissions on gross revenue, in lieu of commissions on money received, at
former rate of one per cent, on 80*000 dollars

1,200
800

NORTH CAROLINA.

Supervisor's salaiy, as before
^
.
l
Commissions on gross revenue, in lieu of commissions on money received, at
H per cent., in lieu of one per cent., on 10,000

700
150

SOUTH CAROLINA.

Supervisor's salary, in lieu of 700 dollars
. . .
Commissions on gross revenue, in lieu of commission on money received, at
1 i per cent, in lieu of one per cent, on 10,000 dollars
23

t

800
150

174-

FINANCE.

[1792.

GEORGIA.

Supervisor's salary, as before e
Commissions on gross revenue, in lieu of commissions on money received, at
two per cent., in lieu of one per cent, on 1,000 dollars

520

Compensations to Inspectors of Surveys.

13,570

MASSACHUSETTS.

Salaries of two inspectors, as before^ 500 dollars each
Commissions on gross revenue, in lieu of commissions on money received, at £ per cent., as before, on 150,000 dollars

1,000
750

PENNSYLVANIA.

Salaries qf three inspectors, as before Commissions on gross revenue, in lieu of commissions on money received, at one per cent., as before, on 60,000 dollars

1,350
600

MARYLAND.

Salary to one inspector, as before
Salary to one inspector for the Eastern Shore, No. 3, when appointed
Commissions on gross revenue, in lieu of commissions on money received, at one per cent., as before, on | of the product of the district, L e. 5,000 dollars
Commissions to inspector No. 3, when appointed

50
50
1,000
3,150
800

N O R T H CAROLINA.

Salaries to the inspectors ofsurvey, Nos. 4 and 5, as before, at 450 dollars
Commissions to do. on gross revenue, in lieu of commissions on money received, at one per cent., as before, on 6,000 dollars
Commissions of the inspectors of survey, Nos. 1, 2, and 3, on the
gross revenue, in lieu of commissions on the money received, at
two per cent., as before, on 4,000 dollars

3,950

900
60
80

SOUTH CAROLINA.

Salaiy of the inspector of survey No. 3, as before, at 45(j dollars
Salary of the inspector of survey No. 2, in lieu of 300 dollars
Commissions to the first named, on gross revenue, in lieu of commissions on the money received, at one per cent, as before, supposed
on 7,500 dollars
Commissions to the last named, on gross revenue, in lieu of commissions on money received, at one per cent., in lieu of two per cent.,
on 5,000 dollars

1,950

450
450

VIRGINIA.

Salaries qf seven inspectors, as before, at 450 dollars
Commissions on gross revenue, in lieu of commissions on money received, at one per cent., as before, on 80,000 dollars

1,750

1,040

450
450
75
50

1,025

10,715

Compensations to the Collectors of the Revenue.
N E W HAMPSHIRE.

Two collectors, at 50 dollars each, an addition to commission (or such part
thereof as shall be deemed necessary by the supervisor)

100

MASSACHUSETTS.

Two collectors, to receive among them 400 dollars, additional (as proposed by
supervisor)

400

RHODE ISLAND.

Two collectors, at 50 dollars (or such part thereof as shall be deemed necessary by supervisor)

50

GEORGIA, SOUTH CAROLINA, N O R T H CAROLINA, VIRGINIA, MARYLAND, D E LAWARE, PENNSYLVANIA, N E W JERSEY, N E W Y O R K , CONNECTICUT, AND
VERMONT.

Eighty-eight collectors, at 60 dollars each, additional (or such part thereof as
may be deemed necessary by the supervisors) Commissions to the collectors, of the sum of 205,000 dollars, computed as the
gross product of the revenue in the districts of Georgia, North and South
Carol ma? Virginia, Maryland, Delaware, Pennsylvania, and New Jersey,
at a medium of five per cent.
Commissions to the collectors, of the sum of 250,000 dollars, computed as the
gross product of the revenue in the districts of New York, Connecticut, Vermont, Rhode Island, Massachusetts, and New Hampshire, at two per cent.,
on spirits from foreign materials, and four per cent, on spirits from domestic materials
* Measuring and marking stills, in the year following June, 1792, computed to
be not more than 4,000 dollars^ at 50 cents, is

5,280

10,250

7,5
2,000

(

1792.]

SPIRITS, FOREIGN AND DOMESTIC.
Compensations to eighty auxiliary officers of inspection, 'at 20 dollars, is
Gauging forty thousand, casks of spirits in the United States, at a medium compensation of four cents

ARTICLE 4 .

175

28,780*

Contingent Expenses, viz:
1st. For stationary, printing certificates, marking implements, &c., including
those foreign spirits, wines, and teas, which issue, by law, from the revenue
offices
New Hampshire Rhode Island and Providence Plantations
4
C
Massachusetts
8
C
Connecticut
4(
Vermont
M
New York
8
C
New Jersey;
1*
Pennsylvania
l,2(
Delaware
*
Maryland
Virginia
9(
#
North Carolina
*
4(
South Carolina
600
Georgia
100
2d. For marking and certifying domestic spirits, three million gallons* in casks
of sixty gallons each? on a medium, is fifty thousand casks, at five cents dutied per gallon of spirits ^
- _
And for marking and certifying distilled spirits, produced by stills, dutied on
their capacity, in casks of thirty gallons each, is eighty thousand casks, at
five cents

ARTICLE 5.

13,380

Compensations for Port Inspectors of the Revenue? and their deputies, for marking ana certifyingforeign Distilled Spirits, Wines, and Teas.
Forty thousand casks, of one hundred gallons each, at five cents, one-half to the
officer of inspection for the certificate, and one half to the persons marking
and making return
Ten thousand seven hundred packages of teas, of various lands, at five cents,
to be divided in like manner
Twenty thousand casks and packages of wines,, at five cents, to be divided in
like manner
-

3,535
69,980

TREASURY DEPARTMENT, Revenue Office, July 25, 1792.

T E N C H C O X E , Commissioner of the Revenue.

A.
Jin estimate of the compensations /or, and contingent expenses on, the collection of the revenue on domestic distilled spirits for one year following the 30*A June, 1791/ to which are added the compensations for, and expenses of,
the inspection offoreign distilled spirits, teas, and wines, for the same term, by the qfficers of the revenue, pursuant to law.
Article 1.
2.

Compensations to supervisors, as in the estimate E, relative to the permanent
arrangement made by the President, on the 4th day of August, 1792
Ditto to inspectors, as per the same
Deduct for 3d survey, Maryland, not in operation

13,570
9,175

3.

Commissions to the collectors,-of the sum of 90,000 dollars, computed as the
gross product of the revenue in the districts of Georgia, North and South
Carolina, Virginia, Maryland, Delaware, Pennsylvania, and New Jersey,
at a medium of five per centum
-..
Commissions to the collectors, of the sum of 297,500 dollars, computed as the
gross product of the revenue, in the districts of New York, Connecticut,
Vermont, Rhode Island, Massachusetts, and New Hampshire, at two per
cent, on spirits from foreign materials, and four per cent, on ditto, from domestic ditto
Measuringand marking stills, in the year following June 30, 1791, computed
to be not more than 2,000, at 50 cents, is
.
4, Contingent expenses, viz.: 1st, for stationary, printing certificates, marking implements, &c., including those for foreign spirits, wines, and^teas, which issue, by law, from the revenue offices, in the proportions in estimate E,
abovementioned
For certifying domestic spirits, dutied per gallon thereof 50,000 casks, at 25
cents .
Compensations to port inspectors of the revenue, and their deputies, .for certifying foreign distilled spirits, wines, and teas, 40,000 casks, of 100 gallons
each, 2£ cents, to the officer of inspection, for the certificate
10,000 packages of teas, of various kinds, at 2£ cents for the same
20,000 casks and,packages of wine, at 2£ cents for the same

4,500

6,550
1,000

8,000
1,250
1,000
250
500
145,795

TREASURY DEPARTMENT, Revenue Office, September 12th, 1792.
T E N C H C O X E , Commissioner of the Revenue.

176-

2d CONGRESS.]

[1792.

FINANCE.

JSJQ.

PUBLIC

4

[

2

d

SESSION.

DEBT.

COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, DECEMBER 3, 1792.

In obedience to two resolutions of the House of Representatives, one of the 21st instant, directing the Secretary of
the Treasury to report a plan for the redemption of so much of the Public Debt as, by the act, entitled "An act
making provision tor the debt of the United States," the United States have reserved the right to redeem; the
other of the 22d instant, directing him to report the plan of a provision for the reimbursement of the loan, made
of the a Bank of the United States, pursuant to the 11th section of the act, entitled "An act to incorporate the
subscribers to the Bank of the United States;" the said Secretary respectfully submits the following report:
The expediency of taking measures for the regular redemption of the public debt, according to therightwhich
has been reserved to the Government, being wisely predetermined, by the resolution of the House of Representatives, referring the subject to the Secretary, nothing remains for him, but to endeavor to select and submit the most
eligible means of providing for the execution of that important object.
With this view, the first inquiry which naturally presents itself is, whether the existing revenues are, or are
not, adequate to the purpose?
The estimates which accompany the report of the Secretary, of the 14th instant, will shew that, during the continuance of the present Indian war/the appropriations for interest, and the demands for the current service, are likely
to exhaust the product of the existing revenues; though they afford a valuable surplus beyond the permanent objects of expenditure, which, it is hoped, may, ere long, be advantageously applied to accelerate the extinguishment
of the debt. ^ ^
In the mean time, however, and until the restoration of peace, the employment of thatresource, in this way, must,
of necessity, be suspended, ana either the business of redemption must be deferred, or recourse must be had to other
expedients.
But, did no such temporary necessity, for resorting to other expedients, exist, the doing of it would still be
recommended by weighty considerations. It would appear, in the abstract, advisable to leave the surplus of the
present revenues free, to be applied to-such casual exigencies as may, from time totime,occur; to occasional purchases
of the debt j when not exhausted by such exigencies; to the payment of interest on any balances which may be found
due to particular States, upon the general settlement of accounts; and finally, to the payment of interest on the
deferred part of the debt, when the period for such payment arrives. There is a reasonable prospect that, if not
diverted, it will be found adequate to the two last important purposes.
Relinquishing, then, the idea of an immediate application of the present revenues to the object in view, it remains
to examine what other modes are in the option of the Legislature.
Loans, from time to time? equal to the sums annually redeemable, and bottomed on the same revenues, which are
now appropriated to pay the interest upon those sums, offer themselves as one expedient, which may be employed
with a degree of advantage. As there is a probability of borrowing at a lower rate of interest, a material saving
would result; and even this resource, if none better could be devised, ought not to be neglected.
* But itis obvious that, to rely upon this resource alone, would be to do little towards thefinalexoneration of the
nation. To stop at that point would, consequently, be neither provident nor satisfactory. The interests as well as
the expectations of the Union require something more effectual.
The establishment of additional revenues is the remaining resource. This, if the business is to be undertaken in
earnest, is unavoidable. And a full confidence may reasonably be entertained, that the community will see, with
satisfaction, the employment of those means, which alone can be effectual, for accomplishing an end, in itself so
important, and so much an object of general desire. It cannot fail to be universally felt, that, if the end is to be
attained, the necessary means must be employed.
It can only be expected^ that care be taken to choose such as are liable to fewest objections, and that, in the modifications of the business in other respects, due regard be had to the present and progressive circumstances of the
country.
p Assuming it as the basis of a plan of redemption, that additional revenues are to be provided, the further inquiry
divides itself into the following branches:
1. Shall a revenue be immediately constituted, equal to the full sum which may at present be redeemed, according to the terms of the contract?
2. Shall a revenue be constituted, from year to year, equal only to the interest of the sum to be redeemed in each
year, coupling with this operation an annual loan, commensurate with such sum? Or,
Shall a revenue be constituted eachyear, so much exceeding the interest of the sum to be^ redeemed, as to be
sufficient, within a short definite term of time, to discharge the principal itself; coupling with this operation also, an
annual loan, equal to the sum to be annually redeemed, and appropriating the revenue created to its discharge, within
the term which shall have been predetermined?
The first plan, besides being completely effectual, would be eventually most economical; but considering to what
a magnitude the revenues of the United States have grown in a short period, it is not easy to pronounce how far the
faculty of paying might not be strained by any sudden considerable augmentation, wheresoever immediately placed;
while the rapid progress of the country in population and resource seems to afford a moral certainty, that the necessary augmentation may be made with convenience, by successive steps, within a moderateterm of time, and invites
to temporary and partial suspensions, as capable of conciliating the reasonable accommodation of the community with
the vigorous prosecution of the main design. For these, and for other reasons which will readily occur, the course
of providing immediately the entire sum to be redeemed, is conceived not to be the most eligible.
^ The second plan, though much more efficacious than that of annual loans, bottomed on the revenues now appropriated for the payment of interest on the sums to be redeemed, does not appear to be sufficiently efficacious. The
schedule A will shew the effect of it to the 1st of January, 1802, when the deferred debt will become redeemable in
the proportions stipulated. Supposing the investment of the interest which is, each year, liberated, together with that
which has been, and will be released by purchases, pursuant to provisions heretofore made, in the purchase of 6 per
cent, stock; a sum of principal, equal to 2,043,837 dollars and 7 cents would be sunk, and a clear annuity, equal to
459,212 dollars and 82 cents would be created, towards further redemptions; but the fund then necessary for the
future progressive redemption of the debt, according to therightreserved, would be 1,126,616 dollars and 44 cents,
exceeding by 667,403 dollars and 62 cents, the amount ufthe redeeming'fund. Something more effectual than this
is certainly desirable, and appears to be practicable.
The last of the three plans best accords with the most accurate view which the Secretary has been able to take
of the public interest. b
In its application, it is of material consequence to endeavor to accomplish these two points: 1st. The complete
discharge of the sums annually redeemable, within the period prefixed, and the reimbursement, within the same
period, of all auxiliary loans, which may have been made for that purpose. 2ndly. The constituting, by the expiration of that period, a clear annual fund, competent to the fiiture redemption of the debt, to the extent of the right
reserved.

1792.]

PUBLIC

DEBT.

177

The period to which it is conceived the plan ought to refer, is the first day of January, 1802; because thenthe
first payment, on account of the principal of the deterred debt, mayrightfullybe made.
In conformity to these ideas, the following plan is most respectfully submitted^ premising, that the sum redeemable for thefirstyear, of the six per cent, stoclc, bearing a present interest, is computed at 550.000 dollars.
Let an annual fund be constituted, during the present session, equal to 103,199 dollars ana six cents, to begin to
accrue from thefirstof January, 1793. Let the sum of 550,000 dollars be borrowed upon the credit of this annuity,
reimbursable within five years, that is, by the first of January? 1799. The sum borrowed to be applied, on the first
of January, 1794, to thefirstpayment on account of the principal < f the debt.
o
The proposed annuity will reimburse the sum borrowed, with interest, by the first of January, 1799*, and will,
thenceforth, be free for any further application.
The sum redeemable the second year, that is, on the first of January, 1795, is computed at 583,000 dollars.
Let an annual fund be constituted, during the second session after the present, equal to 109,391 dollars and 60
cents, to begin to accrue from the first of January, 1794. Let the sum of 583,000 dollars be borrowed upon the credit
of this annuity, reimbursablewithin five years, that is, by first of January, 1800. The sum borrowed to be applied,
on thefirstof January, 1795, to the second payment on account of the principal of the debt
The proposed annuity will reimburse the sum borrowed, with interest, by the first of January, 1800, and will be,
thenceforth, free for any further application.
The sum redeemable the third year, that is, on the first of January, 1796, is computed at 617,980 dollars.
Let an annual fund be constituted, during the third session after the present, equal to 115,955 dollars and 17
cents, to begin to accrue from the first of January, 1795. Let the sum of 617,980 dollars be borrowed upon the credit
of this annuity, reimbursable within five years, that is, by thefirstof January;, 1801. The sum borrowed to be applied, on thefirstof January, 1796, to the third payment on account of the principal of the debt
Trie proposed annuity will reimburse the sum borrowed, with interest, by the first of January, 1801.
The sum redeemable the fourth year, that is, on the first of January, 1797, is computed at 655,058 dollars and 80
cents.
Let an annual fund be constituted, during the fourth session after the present, equal to 122,912 dollars and 48
cents, to begin to accrue from the first of January, 1796. Let the sum of 655,058 dollars and 80 cents be borrowed
upon the credit of this annuity, reimbursable within five years, that is, by thefirstof January, 1802. The sum borrowed to be applied on the first of January, 1797, to the fourth payment on account of the principal of the debt
The proposed annuity will reimburse the sum borrowed, with interest, by the first of January, 1802.
The sum redeemable the fifth year, that is, on the first of January, 1798, is computed at 694,362 dollars and 33
CCI1Let

an annual fund be constituted, during the fifth session after the present, equal to 152,743 dollars and 12
cents, to begin to accrue from the 1st of January, 1797. Let the sum of 694,362 dollars and 33 cents be borrowed
upon the credit of this annuity, reimbursable within four years, that is, by the 1st of January, 1802. The sum borrowed to be applied on the 1st of January, 1798, to the fifth payment on account of the principal of the debt.
The proposed annuity will reimburse the sum borrowed, with interest, by the 1st of January, 1802.
The sum redeemable the sixth year, that is, on the 1st of January, 1799, is computed at 736,024 dollars and 7
cents.
Let an annual fund be cbnstituted, during the sixth_session after the present, equal to 197,680 dollars and 20
cents, to begin to accrue fromtike1st of January^ 1798." Let the sum of 736,024 dollars and 7 cents be borrowed
upon the credit of this annuity, reimbursable within three years, that is, by the 1st of January, 1802. The sum
borrowed to be applied, on the 1st of January, 1799, to the sixth payment on account of the principal of the debt.
The proposed annuity will.reimburse the sum borrowed, with interest, by the 1st of January, 1802.
The sum redeemable the seventh year, that is, on the 1st of January, 1800, is computed at 780,185 dollars and 52
Let an annual fund be constituted, during the seventh session after the present, equal to 272,848 dollars and 38
cents, to begin to accrue from the 1st of January, 1799. Let the sum of 780,185 dollars and 52 cents be borrowed
upon the credit of this annuity, reimbursable within two years, that is, by the 1st of January, 1802. The sum borrowed to be applied, on the first of January, 1800, to the seventh payment on account of the principal of the debt,
The proposed annuity will reimburse the sum borrowed, with interest, by the 1st of January, 1802.
The sum redeemable the eighth year, that is, on the 1st January, 1801, is computed at 826,996 dollars and 65
Let an annual fund be constituted, during the eighth session after the present, equal to 423,583 dollars and 64
cents, to begin to accrue from the 1st of January, 1800. Let the sum of 826,996 dollars and 65 cents be borrowed
upon the credit of this annuity, reimbursable within one# year, that is, on the 1st of January, 1802. The sum borrowed to be applied, on the 1st of January, 1801, to the eighth payment on account of the principal of the debt.
The proposed annuity will reimburse the sum borrowed, with interest, on the 1st of January, 1802.
The sum redeemable the ninth year, that is, on the 1st of January, 1802, is computed at 1,126,616 dollars and 44
cents.
The then existing means for the discharge of this sum, arising from the operation of the plan, will be:
1st. The amount of the annuity constituted the third year, which will have been liberated by reimbursment of
the third loan. 2d. The arrears of interest not previously appropriated, and which are computed at 200,000 dolThere will consequently be a deficiency this year, of 810,661 dollars and 27 cents, which will require to be supplied by a temporary loan, to be reimbursed out of the surplus of the fund, which, on* the 1st of January, 1802, will
exist for future redemptions, and which surplus will be sufficient to reimburse this temporary loan, in about thirteen
years and a half.
.
.
It may be proper to remark, that this deficiency upon one year is suffered to exist, to avoid an unnecessary augmentation of revenue, materially beyond the sum permanently requisite. No inconvenience ensues, because this
temporary deficiency is made up by the surplus of the permanent fund, within the period mentioned. And that
fund, from the 1st of January, 1802, is adequate to all future redemptions, in the full proportion permitted by the
The "table in the schedule B, herewith submitted, will shew, in one view, the principles and operation of this
^ T h e schedule C will exhibit the means of constituting the several annuities proposed to be established. From it
will be seen, that the proposed annuities are to be composed, partly of taxes, to be successively laid, at the respective periods of creating tnem? partly of the surplus dividend to be expected on the stock belonging to the Government, in the Bank of the United States, beyond the interest to be paid on account of it, and, partly, of the funds
heretofore pledged for the payment of interest, which will have been liberated upon so much of the debt as will
have been extinguished.
The respective amounts of the taxes to be severally laid, will be,
In thefirstyear,
$43,199 06
In the second year,
109,391 60
In the third year,
115,955 17
In the fourth year,
102,912 48
In thefifthyear,
102,743 12
In the sixth year,
107,680 20
In the seventh year,
109,649 32
Making, together,

$691,530 95

178

FINANCE.

[17-93.

The sum which \rill have been redeemed prior to the 1st day of January, 1802, will be $5,443,607 37. The
sum redeemable on the 1st of January,, 1802? will be $1,126,616 44; and tne fund which will, thenceforth, exist for the purpose of future redemption, (as is particularly shewn by; the schedule. D) will be $1,210,744 34,
exceeding the sum strictly necessary by $84,127 90—a fund which, including^ the interest, from year to year
liberated, will, as already intimated, be completely adequate to the final redemption of the whole amount of the six
per cent, stock (as well the deferred as that bearing a present interest) according to the right which has been reserved for that purpose.
In the mean time, a further impression will be made upon the debt, by the investment of the residue of the funds
heretofore established, in the purchase of it; and it is hoped, that the restoration of peace with the Indians will
enable the application of the surplus of the existing revenues, together with the proceeds of the ceded lands in our
Western territory, to the same object. These, whenever they can be brought into action, will be important aids,
materially accelerating the ultimate redemption of the entire debt. The employment of these resources, when it
can be,done, by increasing the interest fund, will, proportionally, lessen the necessity of using the resource of taxation, for creating the proposed annuities—if the Government'shall judge it advisable to avail itself of the substitute
which may accrue from that circumstance.
Having now: given a general view of the plan which has appeared, upon the whole, the most eligible, it is necessary, in tne next place, to present to the consideration of the House tne requisite funds for commencing the execution of it. These will embrace a provision for the first annuity only, that alone requiring, by the plan, immediate'
provision. With regard to a provision for the subsequent annuities, which is proposed to be successive, the Secretary will content himself with this general observation, that he discerns no intrinsic difficulty in making provision
for them, as fast as shall be necessary, with due convenience to the people, and consistently with the idea of abstaining from taxing lands and buildings (with the stock and implements of farms) reserving them as a resource for
those great emergencies which call for a full exertion of all the contributive faculties of a country.
The following means, for constituting the first annuity, are respectfully submitted^ viz:
Annual surplus of the dividend on the stock of Government in the Bank of the United States, beyond the interest to be paid out of the said dividend, estimated at $60,000.
Tax on horses, kept or used for the purpose of riding, or of drawing any coach, chariot, phaeton, chaise, chair^
sulky, or other carriage for conveyance of persons, excepting and exempting all horses which are usually ana
chiefly employed for the purposes of husbandry, or in drawing wagons, wains, drays, carts, or other carriages, for
the transportation, of produce, goods, merchandise, and commodities,'or in carrying burthens in the course of the
trade or occupation ot the persons to whom they respectively belong, and the horses of persons in the militaiy service of the United States, viz:
For eveiy horse, not above excepted and exempted, at the rate of one dollar per annum where only one is used
or kept by the same person, with an addition, of fifty cents per annum ner horse, where more than one, and not
more than two, horses are kept or used by the same person; with an addition of one dollar per annum per horse,
where more than two, and not more than four, are kept or used by the same person; and, with an addition of one
dollar and a half dollar per horse, per annum, where more than four are kept or used by the same person: Provided, That this addition shall not be made, in respect to horses usually employed in public stages, for the conveyance of passengers.
This progressive increase b of rates on the higher numbers, has reference to the presumption of greater wealth,
which arises from the possession of such higher numbers.
The product of this tax will5 probably, be about equal to the residue of the proposed annuity, which is $43,199 06,
How near the truth this estimate may prove, experiment, alone, can, in so untried a case, decide. An aid
to tins fund may be derived from the surplus dividend on the bank stock, for the half year ending the last of December next, which, it is presumed, will be not less than $20,000. Should a deficiency appear, upon trial, it can be
supplied by a future provision.
Proper regulations for the collection of this tax will, it is believed, be found not difficult, if the tax itself shall
be deemed eligible. Its simplicity has been a considerable recommendation of it. Qualified as it is, it is not likely
to fall on any but such who can afford to pay it. The exemption from the tax, in regard to horses which are appropriated to the purposes of husbandry, or of any trade or occupation, or to the transportation of commodities, seems
to obviate all reasonable objection.
If, however, there should appear to the Legislature, reasons for preferring a tax on carriages for pleasure, which,
it may be observed, will operate on nearly the same description of persons, the sum reauired may, it is believed,
be produced from the following arrangement of rates, viz: Upon every coach, the annual sum of four dollars. Upon
every chariot, the annual sum of three dollars. Upon every other carriage for the conveyance of persons, having
four wheels, the annual sum of two dollars; and, upon eveiy chair, sulky, or other carriage for the conveyance of
persons, having less than four wheels, the annual sum of one dollar.
The collection of this tax will be as simple and easy, and perhaps more certain, than that which has been primarily submitted.
With regard to the second object referred to the Secretary, namely, the plan of a provision for the reimbursement of the loan made of the Bank of the United States, ^pursuant to the 11th section of the act by which it is
incorporated, the following is respectfully submitted, to wit: That power be given, by law, to borrow the sum due, to
be applied to that reimbursement; and that so much of the dividend on the stock of the Government, in the bank, as
may be necessary, be appropriated for paying the interest of the sum to be borrowed.
From this operation it is obvious that a saving to the Government will result, equal to the difference between the
interest which will be payable on the new loan, and that which is payable on the sum now due to the bank. I f the
proposed loan can be effected at the rate of those last made in Holland, the nett saving to the Government may be
computed at the annual sum of 35,000 dollars; which saving, whatever it may be, is contemplated as part of the
means for constituting the proposed annuities.
" The benefit of this arrangement will be accelerated, if provision be made for the application of the proceeds of any
loans, heretofore obtained, to the payment suggested on the condition of re-placing the sums, which maybe so applied,
out of the proceeds of the loan or loans which shall be made pursuant to the power above proposed to be given.
It will also conduce to'the general end in view, if the Legislature shall think proper to authorize the investment
of the funds, destined for purchases of the debt, in purchases of six per cent, stock, at the market price, though above
par. The comparative prices of the several kinds of stock have been, and frequently may be, such as to render it
more profitable to make investments in the six per cents, than in any other species of stock.
All which is humbly submitted.
A L E X A N D E R H A M I L T O N , Secretary of the Treasury.
TREASURY DEPARTMENT, November 30£/I, 1792.

1792.]

PUBLIC DEBT.

179

TABLE shelving the effect of a sum annually created, equal to the interest of the sum to be redeemed vnthin
each year, for a period of nine years, commencing from the 1st of January, 1793, on the supposition that the
interest on the sum, annually redeemed, be invested, as it is liberated, in the purchase of six per cent stock, at
the price of twenty-two shillings on the pound*
Sums annually redeemable.

Interest annually
liberated.

550,000
583,000
617,980
655,058 80
694,362 33
736,024 07
780,185 52
826,996 65
1,126,616 44

33,000
34,980
37,078 80
39,303 52
41,661 73
44,161 44
46,811 13
49,619 79
67,596 41
65,000

291,172 04
262,523 05
231,916 56
199,233 86
164,349 20
127,129 15
87,432 33
45,108 90
61,451 28
572,520 70

$459,212 82

PERIODS OF REDEMPTION.

$2,043,837 OT

January 1st, 1794,
ditto
1795,
ditto
1796,
ditto
1797,
ditto
1798,
ditto
1799,
ditto
1800,
ditto
1801,
ditto
1802,
Interest on debt paid in and purchased,

TREASURY DEPARTMENT, November

Sums annually
purchased.

30, 1792.
A L E X A N D E R H A M I L T O N , Secretary of the

Treasury.

B.

TABLE
Periods of Re- Sums Redeemdemption or
able.
Payment.

exibiiing a view of the proposed plan of redemption*
Amount of sums bor- Years when Years' Anrowed, with com- annuities nuities*
pound interest to the begin to
respective periods of accrue.
Years'du- reimbursement.

Temporary Loans.

Annuities.

Times of Reimbursement ration. ^
January 1,1794
ditto
1795
ditto
1796
ditto
1797
ditto
1798
ditto
1799
ditto
1800
ditto
1801
ditto
1802
Total sum r e O
deemed by t h e v
1st of Jan. 1802. j

$550,000
583,000
617,980
655,058
694,362
736,024
780,185
826,996
1,126,616

80
33
07
52
65
44

Jan. 1st, 1799
do.
1800
do.
1801
do. 1802
do.
1802
do. 1802
do.
1802
do.
1802

5
5
5
5
4
3
2
1

$701,954
744,071
788,715
836,038
843,997
852,021
860,154
868,346

1793
1794
1795
1796
1797
1798
1799
1800

24
51
44
41
46
53
48

6
6
6
6
5
4
3
2

$103,199
109,391
115,955
122,912
152,743
197,680
272,848
423,583

06
60
17
48
12
20
38
64

N . B. All tlie calculations in this table preiceed upon a rate off [ve per cent, interest.
ALEXANDER HAMILTON.
TREASURY DEPARTMENT, November 30, 1792.
6,570,223 81

c.

Mode of constituting the proposed annuities.
1793. Surplus dividend of bank stock, beyond the interest which will be payable, estimated at 60,000 00
43,199 06
Tax,
1794. Tax
1795. Tax
1796. Part of annual interest converted into annuity,
Tax,

20,000 00
102,912 48

1797. Part of annual interest converted into annuity,
Tax,

50,000 00
102,743 12

1798. Part of annual interest converted into annuity
Tax,

90,000 00
107,680 20

1799. Part of annual interest converted into annuity,
Annuity of thefirstyear, now liberated by reimbursement of first loan,
Tax,

60,000 09
103,199 06
109,649 32

1800. Part of annual interest converted into annuity,
Annuity of second year, now liberated by reimbursement of second loan,
Part of arrears of interest, to be applied for balance ofannuity of this year,

220,000 00
109,391 60
94,192 04

But a supplementary provision will be to be made forthe second year, equal to the sum of 94,192
dollars and four cents, as the fund in that particular is not annual^ this may also arise from
the arrears of interest.
The payment to be made on the 1st of January* 1802, may proceed from the following funds:
Amount of annuity of 3d year, liberated by reimbursement of third loan,
115,955 17
Unappropriated arrears of interest,
200,000 00
Temporary loan
810,661 27
TREASURY DEPARTMENT, November

$103,199 06
109,391 60

122,912 48
152,743 12
197,680 20

272,848 38

423,583 64

1,126,616 44

30, 1792.
ALEXANDER

HAMILTON.

FINANCE.

180

[1793.

D.

View of Redeeming Fund, to and upon the 1st January, 1802,
Interest which will have been liberated by purchases and payments into the treasury, exclusive of redemptions, according to the proposed plan,
Jan. 1st, 1794, by redemption of 550,000 00 dollars, rate 6 percent.
"do.
1795, by
do.
of 583,000 00
at do.
do.
1796, by
do.
of 617,980 00
do.
do.
1797, by
do.
of 655,058 80
do.
do.
1798, by
do.
of 694,362 33
do.
do.
1799, by
do.
of 736,024 07
do.
do.
1800, by
do,
of 780,185 52
do.
do.
1801, by
do.
of 826,996 65
do.
do.
1802, by
do.
of 1,126,616 44
do.

$65,000 00
33,000 00
34.980 00
37,078 80
39,303 52
41,661 73
44,161 44'
46,811 13
49,619 79
67,596 98
$459,213 39

Taxes which will have been laid.
1793,
1794,
1795,
1796,
1797,
1798,
1799,

$43,199 06
109,391 60
115,955 17
102,912 48
102,743 12
107,680 20
109,649 32

Surplus dividend of bank stock, beyond the interest which will be payable out of it,

691,530 95
60,000 00

$1,210,744 34
Amount of interest convertedinto annuities.
1796,
1797,
1798,

$20,000
50,000
90,000

1800,

220,000

Annual sum, at the end of
TREASURY DEPARTMENT, November

1800,

$380,000

30. 1792.

ALEXANDER HAMILTON.

2d CONGRESS.]

[ 2 d SESSION-

LOANS.
COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, JANUARY 4, 1793.*

In the House of Representatives of the United States,
MONDAY, December 24, 1792,

Resolved, That the Secretary of the Treasury be directed to lay before this House, an account of the application
of the moneys borrowed, in Antwerp and Amsterdam, for the United States, within the present year,
THURSDAY, December 27.

Resolved, That the President of the United States be requested to cause this House to be furnished with a
particular account of the several sums, borrowed under his authority, by the United States; the terms on which each
loan has been obtained; the applications to which any of the moneys have been made, agreeable to appropriations;
and the balances, if any, which remain unapplied. In this statement, it is requested that it may be specified at
whattimesinterest commenced on the several sums obtained, and at what times it was stopped, by the several payments made.
-

TREASURY DEPARTMENT, January

SIR:

3, 1793.

In obedience to an order of the President of the United States, I have the honor to transmit sundry statements, Nos. I , I I , I I I , IV, respecting the several foreign loans, which have been made under his authority, by the
United States, shewing, in conformity to the resolution of the House of Representatives of the 27th of December,
as far as the materials in the possession of the treasury will now permit, the several particulars specified in that
resolution; these statements will equally fulfil the object of the resolution of the House of the 24th of December.
With perfect respect, I have the honor to be, sir, your most obedient and humble servant,
^
ALEXANDER HAMILTON.
The Honorable the SPEAKER of the House of Representatives.
* See No. 43.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102