The stocks which will have been redeemed, by the application of th um, during the year, are as follows: The residue of the four and a half per cent. stock, issued One half of the exchanged four and a half per cent. stock, Also, certain portions of the old registered debt, which $1,739,524 13,296,705 2,227,363 56,704 237 The whole of the public debt, which, by the terms of the several loar the United States have a right to redeem, up to the 1st of January next, w have been then paid off; making the entire sum of about fifty-eight millio of dollars, applied to the debt since the 4th of March, 1829. On the 1st of January next, the public debt will be reduced to (K.) $7,001,698 These three last sums, composing the unfunded debt, are payable on t presentation of the certificates. After the 1st of January next, no part of the public debt, except the reaining fragments of the unfunded debt, of which only small portions are ccasionally presented, will be redemable before the following year; and though there will be in the Treasury, during the year, ample means to discharge the whole debt, they can be applied only to the purchase of stock at the market price. It is now manifest that if the bank shares had been sold, and the proceeds applied to this object, the entire debt might, in this man[ner, have been extinguished within the present year. But, it is nevertheless pleasing to reflect, that, after the present year, it may be considered as only a nominal debt; as the bank shares, which have been actually paid for, within the last four years, by the redemption of the stock subscribed for then, are greater in value than the whole amount of that debt: and the debt itself teases to be a burthen, in as much as the dividends, derived from the bank shares, yield more to the Treasury than will be required to pay the interest. The debt, may, therefore, be considered as substantially extinguished after the 1st of January next; which is earlier than was looked for nder the most prosperous and economical administration of our affairs that could have been anticipated. It will, nevertheless, be gratifying to the national pride, that every thing, having even the appearance of debt, should case; and measures will, therefore, be adopted to invite the early presentaCon of the outstanding stocks, that they may be paid off as fast as the means are received, and the evidences of the public debt finally cancelled. It will be a proud day for the American people, when, to all those honorable characteristies which have rendered their career so memorable among nations, they shall add the rare happiness of being a nation without debt. 3 OF THE ESTIMATES OF THE PUBLIC REVENUE AND EXPENDITURES FOR THE YEAR 1833. The statement already presented, shows that the receipts from customs, during the present year, will exceed the estimate submitted at the last session of Congress. It is true, that duties to a considerable amount, received in this year, will hereafter be returned under the 18th section of the act of the last session, for altering the duties on imports. But, as those duties are not to be returned until after the 3d of March next, and as, in the mean time, they will be available means in the treasury, they will be so treated, and the probable amount of them will be deducted from the estimated amount of the duties receivable in 1833. Notwithstanding the unusually large importations in 1831, those of 1832 have also been large-being estimated, for the year ending on the 30th of September last, at $100,652,677 in value. The exports have somewhat exceeded those during the same period in 1831-being estimated at 887,037,943 in value, of which $63,074,815 were of domestic, and $23,963,128 of foreign articles. These results are not only satisfactory, in reference to their connexion with the finances, but as indicating a prosperous condition of commerce. The duties which accrued during the first three quarters of the present year, are estimated at $24,505,000; and those for the fourth quarter, at $4,891,000. Though the proceeds of these duties will form a considerable portion of the receipts into the treasury, from customs, during the year 1833, yet, it is to be observed, that, as the terms of credit will be much shortened on importations subsequent to the 3d of March next, a greater portion of the duties accruing within the year, will be received in that than heretofore. At the same time, the bonds given on previous im tions, at the present terms of credit, will continue to fall due as before the combined operation of these two causes will increase the propo which the actual receipts, within the year, will bear to the accruing d relatively both to past and future years. From data in possession of the department, it is estimated that the which will be returned, out of the revenue of 1833, after the 3d of M next, upon merchandize deposited under the 18th section of the act of 14th of July last, may be estimated at $2,500,000. Though these are necessarily in a great degree conjectural, they are sufficient for the pose of the present estimate. It is proper to be remarked, however, th a broader operation be given by Congress to the provisions of that sec than it has received at the department, the amount will be proportiona increased. A considerable reduction, estimated at not less than two hundred and thousand dollars, from the amount receivable from customs in the pre year, has also resulted from the refunding of duties heretofore collected, perhaps an equal amount from the cancelling of bonds falling due, on road iron, agreeably to the act of the last session. But as this has consist in part, of the drawback of duties taken in previous years, the amount for no criterion for the future. It has been shown that the actual receipts from public lands, during present year, will fall much short of the estimate presented at the last sion. The sales were necessarily affected by the extensive measures ado ed in the western and northwestern country, to repel the recent Indi incursions. Owing, also, to the want of the returns of surveys and plo which the surveyors general found themselves unable to supply, lands, e pected to have been sold, were not brought into market. It is expecte however, that the receipts from this source will be somewhat larger ne year. According to the best judgment the department is able to form on t subject, the receipts into the treasury from all sources, during the year 183 may be estimated at Customs, Public lands, viz: - $21,000,000 00 2,500,000 00 500,000 00 Bank dividends, and incidental and miscellaneous receipts of all other kinds, The expenditures for the year 1833, for all objects, other than the reimbursement of the public debt, are estimated at $24,000,000 17,638,577 3 Revolutionary pensions under the act of 7th of June, 1832, including arrearages from the 4th of March, 1831, in cases in which payment has not been made, Naval service, Interest on the public debt, 4,000,000 3,377,429 38 694,000 00 During the year 1833, however, the moneys which have been received into the treasury, from Denmark, within the two last and present years, for the payment of the indemnities due to American citizens, under the convention, will be payable, estimated at Which, added to the expenditures, will make the aggregate charge upon the treasury, for the year, exclusive of the reimbursement of the public debt, 18,332,577 35 In the year 1833, the first instalment payable under the convention with France, for indemnities to American citizens, will also be received into the treasury, though it will form no part of the disposable means. Taking an average of the importations, for the last six years, as a probable criterion of the ordinary importations for some years to come, the reveane from customs, at the rates of duty payable after the 3d of March next, may be estimated at $18,000,000 annually. The public lands, bank dividends, and other incidental receipts, may be estimated at $3,000,000making an aggregate revenue of about $21,000,000 a year. In the last annual report on the state of the finances, the probable expenses for all objects, other than the public debt, were estimated at fifteen millions. This is still believed to be a fair estimate; and, if so, there will be an annual surplus of six millions of dollars. Still firmly convinced of the truth of the reasons then presented, for a reduction of the revenue to the wants of the Government, I am again urged by a sense of duty, to suggest, that a further reduction of six millions of dollars be made, to take effect after the year 1833. Whether that shall consist altogether of a diminution of the duties on imports, or partly of a relinquishment of the public lands, as a source of revenue, as then suggested, it will be for the wisdom of Congress to determine. Without adverting in unnecessary detail to the consideration in favor of lessening the existing duties, which I had the honor to present, as well in the last annual report, as in that called for by special resolutions of the House of Representatives, I deem it proper to observe that, in my own mind, those considerations have lost none of their force, but have derived new weight from subsequent reflection. The purity and simplicity of the institutions, under which it has pleased Providence to make us a great and prosperous nation; the few objects, and those of a general nature, to which the powers of the Federal Government can be appropriately applied, and the great diversity of interests which, from their local and geographical position, prevail in the several States composing the Union, imperiously require that the amount of the public expenditure should be regulated by a prudent economy, and that no greater amount of revenue should be collected from the people, than may be necessary for such a scale of expenditure. The main purpose of taxation by the General Government, according to the spirit of the constitution, undoubtedly is, to pay the debts, and to pro vide for the common defence and general welfare of the Union, by means confided to Congress. It is freely admitted that this power may, ought to be, directly exerted to counteract foreign legislation, injuriou our own enterprize, and incidentally to protect our own industry, especially those branches "necessary to preserve within ourselves the me of national defence and independence." And, although the exercise of power in either case, must necessarily depend upon the cause which call it forth, the power of taxation, imposing large and permanent burth for the encouragement of particular classes, cannot be exercised, and by der majorities, consistently with a proper regard to the equal rights of and it is not to be concealed, that a permanent system of high protecting ties directly tends to build up favored classes, ultimately prejudicial to safety of the State. Deeply impressed with these reflections, which are now rendered more gent by the reduced and limited demands of the public service, I had honor, at the last session of Congress, to recommend a reduction of the du to the revenue standard. The force of those and similar considerations, a of that recommendation, may be supposed to have received, at that time, t sanction of Congress, and to have formed a motive of the act of the 14 of July last, notwithstanding that it was not then deemed practicable, ful to adopt the recommendation of the department. By that act, howeve besides the positive reduction, both in the rate and in the amount of duty the expediency of adapting the revenue to the expenditure, and of equali ing the public burthens, was, to a great extent, acknowledged, and the op pressive system of minimums was, for the most part, abolished. By tha act, also, those articles principally necessary for the maintenance and cloth ing of the laborers of the south and southwest, were, to a certain degree, relieved, and, both by its direct enactments, and as incident to its main scope it encouraged an increased consumption of such articles as depended for their fabrication upon the raw materials and productions of the south. T extend and improve the demand for those productions, by substituting, a far as practicable in general use, cotton fabrics, for those made of materials from other countries, was not an unimportant object of the bill presented from this department. In the reduction then recommended, the necessity of adapting the proposed changes to the safety of existing establishments, raised up under the auspicies of past legislation, and deeply involving the interests of large por tions of the Union, was distinctly recognized; and it is still deemed to be not less imperious, in the further changes which may be considered expedient. Such necessity, however, arises rather from a just and prudent regard to the rights and interests of the whole community, than from any absolute pledge of the national faith, uncontroled by circumstances. The principles of our republican institutions discountenance (any system of legislation, not in the nature of compact, independent of the popular will, tending to defeat the action of the constituent upon the representative, and to exclude the opera tion of changes in the condition of public affairs or in public opinion, upon the national councils. In this, as in all other instances, the causes which call for the legislative action must determine its duration, and that legisla tion, especially, which confers favors upon particular classes, has no other claim to permanence than its tendency to advance the interests and prosperity of the whole. |