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After the 1st of January next, no part of the public debt, except the reTraining fragments of the unfunded debt, of which only small portions are occasionally 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 deht might, in this manner, 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 eeases 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 under 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 Stase; and measures will, therefore, be adopted to invite the early presentalions of the outstanding stocks, that they may be paid off as fast as the means se 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 chafacteristies 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 sesson 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 out 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 decucted 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 prosperoas condition of commerce.

The duties which accrued during the first, three quarters of the present Fear, are estimated at $24,505,000; and those for the fourth quarter, at 84,891,000. 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 imp tions, at the present terms of credit, will continue to fall due as before; the combined operation of these two causes will increase the propor which the actual receipts, within the year, will bear to the accruing du relatively both to past and future years.

From data in possession of the department, it is estimated that the du 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 secti than it has received at the department, the amount will be proportionat increased.

A considerable reduction, estimated at not less than two hundred and fi thousand dollars, from the amount receivable from customs in the prese year, has also resulted from the refunding of duties heretofore collected, au 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 consiste 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 t present year, will fall much short of the estimate presented at the last se sion. The sales were necessarily affected by the extensive measures adop: ed in the western and northwestern country, to repel the recent Indian incursions. Owing, also, to the want of the returns of surveys and plots which the surveyors general found themselves unable to supply, lands, ex pected to have been sold, were not brought into market. It is expected however, that the receipts from this source will be somewhat larger nex year.

According to the best judgment the department is able to form on the subject, the receipts into the treasury from all sources, during the year 1833 may be estimated at

viz: Customs,

$21,000,000 00 Public lands,

2,500,000 00 Bank dividends, and incidental and mis

cellaneous receipts of all other kinds, 500,000 00

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$24,000,000

The expenditures for the year 1833, for all objects, other

17,635,577 35

than the reimbursement of the public debt, are estimated at

viz: Civil, foreign intercourse, and miscellaneous,

3,045,361 70 Military service, including fortifications,

ordnance, Indian affairs, pensions, arming the militia, and internal improvements,

6,878,790 09

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, Natal service, Interest on the public debt,

4,000,000
3,377,429 38

336,996 18

During the year 1933, however, the moneys which have

been received into the treasury, from Denmark, within the two last and present years, for the payment of the iodemnities due to American citizens, under the conFestion, will be payable, estimated at

694,000 00 Which, added to the expenditures, will make the aggre. gate charge upon the treasury, for the year, exclusive of the reimbursement of the public debt,

16,332,577 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 eriterion of the ordinary importations for some years to come, the revesue 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 divideeds, 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 stili 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 rednetion 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 neces. sary 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 provide 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, m 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 m call it forth, the poiver of taxation, imposing large and permanent burth for the encouragement of particular classes, cannot be exercised, and by si 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.

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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 duti to the revenue standard. The force of those and similar considerations, ar of that recommendation, may be supposed to have received, at that time, th 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, full to adopt the recommendation of the department. By that act, however 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 equaliz ing the public burthens, was, to a great extent, acknowledged, and the op pressive system of minimums was, for the most part, abolished. By that act, also, those articles principally necessary for the maintenance and elothing 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. To extend and improve the demand for those productions, by substituting, 23 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 portions 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 Jetermine its duration, and

that legislado 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.

To aid American enterprise in every branch of labor, and, by seasonable

ouragement, to foster and preserve within ourselves the means of national ence and independence, led to the protective system in the infancy of the nvernment. To counteract the policy and rivalry of foreign nations, and prevent their prejudicial influence upon American industry; to indeminify

latter against the superior skill, and capital, and cheapness, of labor in der and more experienced countries; and to succor American capital, which se events of the last war had devoted to manufacturing employments, reummended an occasional extension of that policy, which has been liberally njoyed by the manufacturing classes, since the act of the 4th of July, 1789. In the course of that time, however, the capital and resources of the country have augmented in a ratio beyond the expectations and hopes of the most sanguine American enterprise and ingenuity are, every where, proverrually the objects of admiration, and in many branches, maintain, without extraordinary aid, a successful competition with those of other nations. By = abundance of provisions in the United States, and the surprising increase

population, the widespread facilities of water-power, the improvements, * well in personal skill as in machinery of all kinds, and the general adJeement and diffusion of all the lights of arts and science, and the reducsa of duty, both on the raw material and other articles of consumption, the cost of labor and production have not only been lessened, but, in a great treasure equalized; and, in this view of the subject, it is not perceived that here can now exist the same necessity for high protecting duties, as that which was consuhed in our past legislation. To perpetuate a system of enekirgement, growing out of a different state of things, would be to confer advantages upon the manufacturing, which are not enjoyed by any other mch of labor in the United States, and to convert the favor and bounty of the Government into permanent obligations of right-acquiring strength : proportion to their continuance.

It will be conceded, that, when the fair rate of profit attendant upon the greious employment of capital in the United States is satisfactorily ascerized, it may be wise so far to protect any important branch against the in

rious effects of foreign rivalry, as may be necessary to preserve for it the same rate of profit as is enjoyed by others. If, however, by protective legislation, or otherwise, the proprietor of an actual capital shall be enabled to employ it in manufactures as advantageously and profitably as in any other branch of labor, all things considered, he could not reasonably demand more. The rate of protection which should enable manufacturing labor, conducted upon borrowed capital, to indemnify the lender, and, in addition, to realize the regular rate of profit for itself, would not merely confer undue favor upon the manufacturer, at the expense of every other employment, but briay the influence of the capitalist in direct conflict with the general mass of the people. It might even be apprehended, that, by such means, there would be an accumulation of power in the hands of particular classes, strong enough to control the Government itself. If these observations are entitled to respect, little doubt is entertained, that, in a tariff framed on proper prineiples, the reduction of six millions, now recommended, may, for the most sart, be made upon those commonly denominated protected articles, without prejudice to the reasonable claims of existing establishments.

By the act of the 14th of July last, the anomaly in the tariff of the United States, by which heavy and burdensome duties were imposed upon the raw material, and especially upon the article of wool, was continued; and the ne

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