UC-MRLF 111 $B b35 53^ UBRARp- OF THE UNIVER. OF P^IJFORNtft 7# VIEWS OF THE Public Debt, Receipts > & Expenditures OF THE UNITED STATES. By ALBERT IgALLATIN. SECOND EDITION, PHILADELPHIA: PRINTED BY MATHEW CAREY, No. 118 Market-Street. 1801. USA I Views, &c. PUBLIC DEBT. HE Secretary of the Treafury, in aletter to the committee of ways and means, dated 2 2d Jan. 1 800, gave it as his opinion, that the " prin- cipal of the debt of the United States had in- creafed, fmce the eftablifhment of the present government, the fum of dols. 1,516,338. 50." A committee of the Houie of Reprefentatives, ap- pointed on the 20th March/olio wing, " to ex- amine the accounts of the United States, relat- ing to the public debt, and to report the amount respectively incurred and extinguifhed, and ge- nerally such facts as relate to the increase or di- minution of the fame, since the establifhment of the government of theUnited States under the prefent conftitution," reported on the 8th May, a number of statements furnifhed by the Trea- sury department, and as the refult drawn by them from thofe statements, that the public debt, instead of having increased one million and a half as stated by the Secretary of the Treafury, or to a larger amount, as had been sug^efted, was, on the firft of January 1800, diminijhed, by a fum 1,092,841 dollars and 48 cents, if contrail cd with the debt on the 1st January 1790 ; and by M552936 C 4 ] a fum of 3,972,878 dollars and 66 cents, if com- pared with the debt of 1st January 1 791. The report was printed by order of the Houfe, but never acted upon ; nor any occasion offered, during the remainder of the session, toinveftigate its principles. The different results exhibited by the Secre- tary in January, and by the committee in May, at once show that the subject may be considered in different views, and embraces not only only matters of fact, but questions of opinion. Whether the view taken by the committee is correct or not, is not a queftion, to be decided by facts only, but by reafoning; and their report, not being confined, as seems to have been ori- ginally intended by the House, to matters of fact, muft be confidered only as the opinion of a few individuals, and gives no further weight or sanc- tion to that opinion, than can be derived from the correctness of the reasoning on which it is grounded. It is intended, in this effay, to exam- ine some of the facts contained in the Treasury statements ; to discuss the groundsof the opinion of the opinion of the committee ; and to add some general observations on the financial opera- tions of the government of the United States. The short time that the writer can bestow on the invefligation is no apology for any thing con- tained in it, but will account for any omiflion. Whenever such omission occurs, the facts and C 5 ] opinions of the statements and report are admit- ted as correct. The progress of dimunition of the public debt, during any given period, may be stated in two different ways, which constitute two different views of the fubject. i st, The amount of the debt, as it did realy ex- ist, at the beginning and end of the period, may be simply stated, without making any deductions refulting from collateral considerations; and the difference between the two amounts will mow what may be called the nominal increase or di- minution of debt during the period. 2d, From the nominal or apparent amount of debt, thus existing at the beginning and end of the period, may be respectively deducted the amount of funds actually possessed at thofe two different times by government and applica- cable to the reduction of the debt ; and the re- sult will give a more general comparative view of the financial situation of government, than can perhaps be derived from the insulated considera- tion of the amount of public debt. The fird way is that which has been universal- ly adopted in other countries, in statements of that kind. When the amount of the public debt of Great Britain is stated, the nominal amount is always given, without making any de- ductions on account of anv funds or resources which might be applied to the payment of some [63- part of it. Those funds being perpetually liable to be diverted to other purposes, no deduction is rupposed to be allowable, until after the money has actually been applied to the reduction of the debt. Yet, it is certainly proper, in order to have a full and comprehensive view of the sub- ]cQ$ to state the account both ways. If an admi- nistration shall have contracted during a certain period, a debt of one million of dollars, but shall leave in the Treasury one million of dollars more than was in it at the commencement of the period, and that million not charged with any incum- brance, nor requisite to defray any authorised expence, it cannot be denied, that, notwithstand- ing the nominal increase of debt, the financial si- tuation of the country is not changed. It is, ne- vertheless, evident, that this last mode is more uncertain and more liable to induce an error, on account of the difficulty of ascertaining with pre- cifion, what are the funds or resources actually possessed by government and strictly applicable •to the reduction of the debt. The statements furnifhed to the committee of the treasury department are intended to give the amount of debt as it really did exist on the first days of January 1790, 1791, and 1800; and their result shows simply the nominal difference of debt on those respective days, with only one exception. The shares owned by government in she Bank of the United States are deducted from L 7 ] the nominal amount of debt on the i st January 1800 ; and the deduction seems proper, even on the principle of stating that nominal amount, be- cause those shares yield to government annual dividends, which are a proper offset against an equal amount of the interest paid on the public debt. The possession of those shares is precisely the same thing as the reduction of an amount of debt costing government an annual interest equal to the dividends receivable on the shares. The report of the committee is intended t« give a comparative view of the financial situation of the United States, by deducting from the no- minal amount of debt on those days, what they suppose to be " certain funds acquired by the go- vernment, and which may be applied to face the foregoing debt." The Amount of Public Debt is thus stated by the Secretary of the ' Treasury. On the i st January 1790. Foreign Debt. Principal - 10,304,635. 15 Arrears of Interest to this day 1,696,562. 92 — - - 12,001,108. 07 Debt to foreign Officers 126,988.33 Domestic Debt. Principal . - - 28,630,190. 73 Interest to this day - 10,923,997. 82 Assumed Debt. 39,554,188.55 Principal of State debts assumed - - 15,082,771 33 Interest on do. to this day - - 1,379,110.85 Principal of balances funded to creditor States 3,517,584 — — 19,979,466. 18 Debts discharged in Specie - 515,460.94 Total 72,237,301. 97 On the 1st January 1791. Amountofdebt on 1st January I790 per above - - 72)237,301. 97 Interest on foreign debt for 1790 - 474,715,11 deduct monies in Holland - 132,475,31 Intereft on Domeftic debt for 1790 - 1,688,962. 01 Do. on aifumed debt for do, - - 1,045,669. 64 342,239 80 2,734,631. 65 75»3 I 4>i73-4» Intereft on affumed debt for 1791 - 1,045,669.64 Intereft on balances for creditor States for j 792, 1793, and 1794 - - 422,110,08 1 1,467,779. 7: Total 76,781,95?. 14 C 9 ] On the i st January 1800. Foreign Debt 10,819,000 Six per c«nt st ck, deducing thefums purchased, or reimbursed - 25,030,467. 59 L«t6ck, do. - - - 13682,944.17 Three per cent itock do. - - 19,086,70'*- 54 . i half per cent stock Jo. - 1,847,500. Four and half per cent stock - 176,000. Sir per cent stock of 1796 - - 80,000. r cent Navy stock 1796 - 929,200. ti^ht per cent stock of do. - 5,000,000. 59,823,620.3* Loans obtained from the Bank - 3,640,000. DeJuS Eunk fiures owned by U. S. at par 888,000. 6,009,200. ■ - 2,752,000. Total 79,403,820. 30 Thus it appears on the face of that document, that, admitting its details to be altogether corredt, and considering the whole of the assumed debt to have been a proper debt of the United States contracted by the former government, the no- minal debt had, on the ist January 1800, in- creased by a sum of 7,166,518 dollars and 33 cents, from the 1st January 1790; by a sum of 4,089.646 dollars and 88 cents, computing from the ist January 1791 ; and by a sum of 2,621,867 dollars and 16 cents, if we contrast the prefent debt with the total amount of old debt as funded by government. It is stated as a matter of fact, that the debt on the ist January 1790 was feven million of dollars less than it is now. It is only by deductions and arguments that a contrary result can be made to appear. B C 10 ] The conclusions of the committee, so far as they differ from this first refult, rest no longer on arithmetical precision, but on the supposed cor- rectness of their assumed positions. The deductions made by the Committee from the amount of debt stated by the Secretary of the Treafury, are as follows — From the nominal amount of debt on the ist January 1790 ------ 7 2 >237,30i. 97 ist Proceeds of lands on lake Erie, fold to Pennfylvania by the former government, and paid in certificates - I 5 I >39*-4 1 2- Debts due to the United States, on balan- ces of accounts which originated under the former government, and received, in specie 62,586. 74 3. Debts due by the United States [being part of the fum of dollars 515,460. 94 in- cluded in the amount of debt due on the Ist January 1790] difcharged before 1790 15,927. 13 4. Cafh in treafury, or in hands of Collectors on 1st January 1790 - 111,367.45 3. Uncollected Custom Houfc bonds - 590,468. 60 74*-33 Leaving for "amt. of debt on 1st January 1790," according / Co committee 7i>3°5>559-°4- From the nominal amount of debt on the 1st January 1791 76,781,953. 14 1. 2. 3. Lands fold to Pennsylvania, debts due to the United States, and debts due by the United States difcharged before 1790, as per above - 729,906. 28 4. Public debt purchafed or difcharged dur- ing 1790. - 518,424. 08 5. CaiTi in treafury, or in hands of Cellectors on ist January 1791 - - 795,810.83 6. Uncollected Cuftom Houfe bonds - 1,052,215.13 2,596,356. 3* Leaving for " true amount of debt on the ist Jan. 1791," according to committee - 74> l55 5>59 6 - * 2 [ II ] Trom the nominal amount of debt on the 1st January 1800. - 79,403,810. 3* 1. Twenty- five per cent advance on the Ori- ginal cost of the Bank Stock belonging to the U. S. . 222,000. 2. Cafh in treafury or in hands of Collectors on 1st January i8co, deducting a balance due to foreign officers, and outstanding re- gistered debt - - ?. Remittances made to Holland beyond tho sum necessary to meet all demands there to the clofe of 1799 4, Uncollected Custom House bonds, esti- mated, after making the proper deductions *>593>93 T .30 548,955- 8 4 5,826,214 - - 9>i9 T » 101. H - 70,212, .719- 16 Leaving for " true amount of debt on 1st January 1800," according to committee It is evident, from a view of those statements, that supposing every deduction to have been proper, yet it is incorrect to call the result a " true amount of debt," and to say " that the debt has in facl: been diminished. " Those ex- pressions may, to a superficial observer, convey the fallacious idea, that a portion of the public debt has in facl: been paid. Supposing the state- ments and deductions to be perfectly correct, the conclusion is only that the debt has in fad in- creased; but that, on the other hand, government has acquired funds applicable and more than sufficient to face that increase. Whether those statements are altogether correct, and whether the funds deducted are properly applicable to face the debt, remains to be examined. The object of this enquiry being to ascertain the result of the fiscal operations of government under the present constitution, it appears most [ » ] proper to compare the amount of the debt on the i st of Jan. 1800 with that of the 1st of January 1790, rather than with that of the 1st of January 1 79 1. The statement of the debt on this last day must be intended, to show either its true amount on that precise day, or the amount of what may be considered as the whole of the debt contracted by the late government, as the same has been funded by the present govern- ment. It is evident that the first view of the sub- ject would not answer the object of the enquiry; and that there is no reason to select the com- mencement of 1 79 1 in preference to the com- mencement of 1792 or 1793, and to reject one year in preference to two or three. But should that be the object, the statement is erroneous, in as much as it includes, as part of the debt of the 1st January 1791, a sum of 1,467,779 dollars and 72 cents, consisting of the interest w r hich accrued after the 1st of January 1791, on the assumed debt and balances funded in favour of the creditor states, but which was funded instead of being paid. The other view of the subject appears still more incorrect ; it presuppofes what is controverted, that the whole of the debt funded by the prefent, was contract- ed by the former government ; it contemplates a fum of four millions of dollars, consisting of intereft which accrued on the old debt after the year 1782, as a part of the debt contracted be- L 13 J fore the 4th day of March 1789 ; and it excludes every consideration of the propriety or impro- priety of the funding system. But even in that view, the statement is erroneous ; for it includes, as part of the debt funded by the present go- vernment, the interest which accrued on the foreign debt from March 1789, to January 1791, amounting to 722,000 dollars, and which was paid and not funded. Another considera- tion of still greater importance will apply to that statement. In that view of the subject., the whole amount of interest which accrued, on the old debt, after the establishment of the present govern- ment, is included as part of the old debt ; every consideration of the propriety of the funding sysftem is excluded; the whole debt, as funded, is considered as the debt of the former govern- ment ; it is no longer a view of the whole of the financial operations of the present government ; it is no longer a comparative view of the pre- sent debt, and of the debt as it really did exist when the present government was eftablished ; it is only a view of the financial operations of government since the establishment of the fund- ing system ; it is only a comparative view of the present state of the debt, and of its true amount and value as it stood after it had been funded. And, in that view of the subject, the deferred stock ouo-ht to be eftimated, not at its nominal, C H ] but at its real value, both on the ist January 1 800, and immediately after it had been funded. It is evident that the increafe of value of that stock, from the time when it was issued to the prefent day, is in that view of the subject, area! increafe of debt. That stock was worth four or five millions of dollars less, immediately after it had been issued, than it is now, and might have been redeemed so much cheaper then than now. It would now cost government four or five millions of dollars more to pay that debt than it would have done at that time. One hundred dollars will, at fimple interefl, at the rate of six per cent, a year, produce one hundred and fifty four dollars in nine years. One hundred and fifty four dollar •-, payable nine years hence , without interest, are worth only one hundred dollars at present. One hundred and fifty four dollars, payable on the ist Jan. 1800, without interest, were on the ist January 1 70 1, worth only one hundred dollars. The deferred Stock was, after the funding system had been adopted, a debt on which the interest was suspended for ten years, a debt on which the intercts was suspended for ten years, a debt payable only ten years afterwards. Computing only at simple interest, the 13,682,944 dollars and 1 7 cents deferred stock were worth, on the 1st Jan. 1 79 1, no more than 8,551,840 dollars and 10 cents ; and on the ist Jan. 1800, thev t is ] were worth 12,870,702 dollars and five cents. Computing only at simple interest, the debt has, in this single item, increased, since the funding system, by a sum of 4,318,861 dollars and 95 cents. In whatever view the subjecl may be considered, it is not less true, that go- vernment have enjoyed for nine years the benefit arifing from the suspension of intereft on the deferred stock ; and that after the present year a further sum of 820,000 dollars will be added to the present annual charges on the public debt, in order to pay that interest. If we compute from after the establifhment of the funding sys- tem, we may indeed, from the amount of in- crease of debt exclude the intereft which ac- crued on the old-debt, between the establishment of the prefent government and the time at which we began to pay the interest on the debt ; but we must include the increased value of the de- ferred stock since the establishment of the fund- ing system. If we compute from the 1st Jan. 1790, to wit, from ten months after the estab- lifhment of the present government, we mall exclude from the amount of old debt the inter- est which accrued on it, subsequent to that day ; but we mall consider the deferred stock as part of the old debt, at its nominal value, and with- out any deduction on account of the suspension of interest \ since that suspension was produc- [ 16 J cd by the funding system, an J did not exist on the i st Jan. 1790. The following considerations will, therefore, apply only to the statements of debt and deducti- ons made by the committee, for the first days of January 1790 and 1800 ; and they will em- brace three objects. 1. Sundry observations on the details of those statements. II. An exami- nation of the question,\vhether the whole of the assumed debt ought to be considered as part of the debt contracted by the former government ? III. An enquiry into the propriety of deducting from the amount of debt, on any given day, the uncollected Custom House bonds due by merchants, for duties on goods imported ? 1. The details of the statements mould, it seems, be corrected in the following items : 1. In the amount of foreign debt on the 1st Jan. 1790, as stated by the Secretary of the Treasury, the principal of the French debt, in- cluding arrearages of interest to that day, is computed at dolls. 7,896,517.12. But by o- ther official statements, and by the statement No. 6, annexed to the report of the Committee, it appears that that debt amounted only to dolls. 7,895,300.39, making a difference of dolls. 1,216.73 to be deducted from the amount of debt on 1st Jan. 17: 2. In the same amount of foreign debt on that day, are included 263,000 dollars, premiums, c n i payable at different periods, on a loan obtained in Holland at the rate of four per cent, a year, by the former government. Supposing that tho?e premiums should be comidered as part of the principal of the debt, their value, as they did not bear any interest, and were payable at distant periods, should be estimated, on the ist Jan. 1790, on the principle of an irregular short annuity, by discounting the interest on each of them, according to the date of its becoming due. On that principle, they were on that day worth about 172,000 dollars, and, therefore, 91,000 dollars lefs than their nominal amount. But thofe premiums, on a full investigation of the subject, appear to have been no part of the principal of the debt ; they were an additi- onal interefl. The late government could not, in 1784, have obtained a loan at four percent ; the four per cent, interest on that loan was merely nominal ; and the premiums made up the real rate of interest at which the loan was ob- tained. The former government received only 800,000 dollars, and they agreed to pay both the nomind intereft and the premiums for the ufe of that money. The 263.000 dollars must therefore be dedu&ed from the amount of debt on ist January 1790 ; and, on the same prin- ciple, the premiums still due, on that loan, on the ist January iSoo, and amounting to 59,000 [ i8 ] dollars, should be deducted from the amount of debt on this last day. 3. It is stated by the Secretary of the Treasu- ry, in the statement of foreign receipts and ex- penditures, No. 5, that a sum of dollars 20,373.33 in six per cent stock, part of dollars 660,373.33 in said stock purchased from the Bank by go- vernment, and remitted to Holland, remained unsold, and had been returned to the treasury, and passed to the credit of the sinking fund. That sum, however, is not included in the de- ductions made by the Secretary from the no- minal amount of domestic debt on the 1st Jan. 1800, on account of purchases and trans- fers to the sinking fund. It is an omiffion which should be rectified, by deducting that sum from the nominal amount of the debt on 1st Ja- nuary 1800. 4. The amount of interest which accrued on the domestic debt, during the year 1790, is stat- ed at 1,688,962. ci. But by a subsequent official statement, an error in that item is rectified, and the true amount of that interest is stated at dollars 1,671,291.55. The difference, amount- ing to dollars 17,670,46, makes part of the in- terest accrued on that debt before 1790, and should be added to the amount of debt on the 1st January 1790. 5. In the amount of arrears of interest on the domestic debt, accrued before 1790, are inclu- C 19 3 ded dollars 22,438.58 being two years interest on the debt due to foreign officers. The amount of arrears of interest on that day to the 1 st January 1790, were only dollars 10,822.05. The difference amounting to dollars 11,616,53, fhould be deducted from the nominal amount of debt on 1st January 1790. That the ar- rears of interest prior to the year 1790, amount- ed only to dollars 10,822. 05 is deduced from the treasury statements in the following manner. The outstanding registered debt, and debt due to foreign officers, is stated, on the ist Jan. 1800, at 100,184. 18 The purchases of registered debt and loan office certificates amounted to dollars - 97,124. 47 Which deducted from the amount credited to sinking fund - 169,306. 78 Leaves for the outstanding registered debt - 72,182.34 taking for the outstanding debt due to foreign officers on 1st January 1800. - - 28,001. 87 Adding to this, the whole amount of debt paid to foreign officers, including both principal and interest - - 203,466.28 Gives for the whole amount of debt due to foreign officers, including interest to the istjan. 1 793, the day to which it wa* paid, - 231,468.15 The principal of that debt was - - 186,988. 23 And three years interest on the same, for the years 1790, 1791 and 1792 - - 35>^57- 8 7 Making for the principal and interest subsequent to 1st January 1790 - - 220,646. 10 Which leaves for the interest prior to 1790 - 10,822. 05 6. In the sum of dollars 515,460. 94, includ- ed in the amount of debt due on the 1st January [ 20 ] 1790, as being " debts contracted by the former government and fmce difcharged in fpecie," are included two items which should be deducted, viz. the interest which accrued refpectively on thofe debts after the 1st January 1790, to the day when they were difcharged, but which being neither considerable, nor ascertained in the of- ficial statements, shall be neglected \ and the grants of Congrefs to the heirs of General Greene, amounting to 71, 45 3 dollars and 36 cents, which were altogether a gratuity, and not the payment of a debt due by the late government. In order to enable the contractors for supplying the southern army to obtain the necessary sup- plies, General Greene had been induced to be- come personally their security to certain mer- chants of South Carolina. The monies due for those supplies were paid in full by Congrefs to those contractors ; but these did not apply that money to the discharge of the debt due by them to the merchants, and after a number of years, General Greene's estate was found to be liable for its payment. This sum was therefore a debt of General Greene for supplies which had actu- ally been paid by the United States, and not a debt of the United States, and should also be deducted from the amount of debt on the 1st January 1790. 7. A sum of 10,085 dollars and 51 cents was advanced in 1792 to pay some arrearages due to [ A ] the late Maryland line; and dollars 5,394. 5J, part of the same sum, were repaid in the treasury in 1799. If the original sum is included in the amount of dollars 515,460. 94, stated as the amount of old debts discharged in specie, the repayment of dollars 5,394. 57 should be de- ducted from that amount, and from the amount of debt on the 1st January 1790. If the origi- nal sum is not included in that amount, the difference between it and the sum repaid, which constitutes the sum actually expended, and amounts to dollars 4,680. 94, should be added to the nominal amount of debt on the 1st Jan. 1790. A correction seems necessary in either cafe ; but there being some uncertainty to what account that expenditure was charged, no alter- ation shall be made on that account. 3. To the deductions made by the Commit- tee from the nominal amount of debt on the 1st January 1790, should be added on the same principle — 1st the sum of dollars 132,475. 31, stated by the treasury department to have been in the hands of the Bankers of the United Slates in Holland on that day, and which is accord- ingly deducted by that department from the amount of debt on the 1st January 1791, but is, through mistake, omitted in the statement of 1st January 1790 — 2d a sum of dollars 107,605. 07 stated, by another official statement of the receipts and expenditures of the war department, I 22 ] to have been remaining in the hands of the late Paymaster General at the commencement of the present government — 3d a sum of dollars 24,091. 31 in six per cent, three per cent and deferred stock, stated by the treasury depart- m ent, in Statement No. I. to have been received in payment of certain balances which originated prior to the present constitution. 9. The two following sums, part of the de- ductions made by the Committee from the amount of debt due on the 1st January 1790, viz. dollars 15,927. 13, amount of debts due by the United States, discharged before the year 1790, and dollars 151,392. 41 proceeds of lands sold to Pennsylvania by the former government and paid by that state in evidences of the public debt, should be deducled at once from the no- minal amount of debt on the 1st January 1790, as they were not merely funds acquired by go- vernment, but debts actually paid. The out- standing registered debt and debt due to foreign officers, amounting to dollars 100,184. 18 and deducted by the Committee from the balance in specie in the treasury on the 1st January 1800, should be added to the nominal amount of debt on that day, as it was a debt not yet paid. And, on the fame principle, on which the Bank stock owned by the U. States has been deducled at its prime cost from the nominal amount of debt on the Tst January iSco, it may be deducted from C 23 j that amount, at the same rate at which it was valued by the Committee, viz. at 25 per cent, advance. These last alterations will not caufe any change in the final result, but only in the nominal amount of debt on the first days of Jan. 1790, and 1 800 respectively. II. The several states had, during the revolu- tionary war, made sundry advances for the sup- port of that war, but thofe advances were not made in the same proportion nor in the fame manner. Some states were more indebted to individuals than others, on account, either of true situation in which they had been placed during the war, of the greatness of their exertions dur- ing the war, or of their remissness in raising taxes after the war. And those states who had advanced less than their proportion for the fup- port of the war, were indebted, for the diffe- rence, to those who had advanced more than their proportion. The accounts had not yet been finally settled when the present government was established; and the ostensible objects of the assumption seem to have been, to relieve the states, who were most oppressed by individual debts; and to equalize the accounts between the several states. The first was an object of policy, the last an object of justice : for the only prac- ticable mode under the present constitution, in which the debtor states could be made to pay what they fairly owed to the creditor states, was [ U ] that the Union should pay to the creditor states such sums, and in such proportions, as should, as far as possible, equalize the accounts. And those payments might be made either to the states themfelves, or to the creditors of thofe states. It is evident that, in order to carry that mode into effect with correctness and regard to justice, it was previously necessary to settle the accounts of the individual States, and to ascertain which of them were creditor and to what amount. But, instead of waiting until that result was known, state debts were assumed at random by the Union, and without a possibility of knowing whether some of the states, in whose favour that assumption was made, were not, on the contrary, indebted to the Union. The event corresponds with what might have been expected from that loose mode of legislating. Considering the assumption of state debts as intended solely for the purpofe of doing equal justice to the several states, by equalizing their accounts ; it may be demonstrated, that, had Congress waited until the settlement of ac- counts had taken place, before any state debts were assumed, they might have produced the same effect by an assumption, in favour of the creditor states, to the amount of dollars 11,609,259.69, which has been produced by the premature assumption of dolls. 21,789,371. 47, which have been actually assumed or fund- L *5 ] ed in favour of the several States ; that is to fay, that the accounts of the Union with the indivi- dual states might have been placed in the same relative situation in which they now stand, by assuming dollars 10,180,111.78 less than have been assumed. Those who conceive the princi- ple of the assumption, so far as it rested on a wish to relieve the individual states from the burden of their debts, to have been confound- ed ; those who conceive that it was unnecefiary for the Union to assume more debts than was strictly requisite to equalize the accounts of the ieveral states ; those who think that it was impo- litic to swell the debt of the United States, and that it would have been more easy for the indivi- dual states than for the Union to discharge that surplus, will be of opinion that the unnecessary- debt, created by the rash assumption of state debts before a final settlement of accounts, and which cannot be considered as a debt of the United States contracted by the former govern- ment, amounts to more than ten millions of dol- lars ; and that this sum ought to be deducted from the nominal amount of debt stated to have been due by the United States on 1st Jan. 1790. But even the warmest supporters of the as- sumption of state debts, on its most enlarged scale ; even those who think that, both on the score of justice, and in order to relieve them from a heavv burthen, it was wise and politic to D C 26 ] have assumed the whole of the sum which was actually assumed in favour of the creditor states; even they must acknowledge, that an assump- tion, made at random before the accounts were settled, rendered it unavoidable to assume debts in favour of states which were in fact already in- debted to the Union, and that the consequence has been such, as might have been foreseen. Thus near 1,200,000 dollars were assumed for the state of New- York, which, when the ac- counts were finally settled, was found to be in- debted to the Union to the amount of more than two millions. It is self-evident that the debts, thus assumed for debtor States, were not due by the United States ; that they are not a part of the old debt ; that they are a debt unnecessari- ly constituted and created by the present go- vernment. On the most superficial view of the subject, it appears that dollars 2,069,565.71 have thus been assumed for debtor states, to the manifest injury of the other states, and constitute an additional debt, which should be deducted from the amount improperly stated as the debt contracted by the former government. What part of that sum consisted of interest, accrued after the year 1789, does not appear and must be estimated. Considering the states in whose favour that unnecessary assumption took place, it is not believed, that that interest amounted to one hundred thousand dollars. And the amount L 27 ] of assumed debt created by the present govern- ment, and to be, at all events, and in the most favourable view of the subject, -deducted from the nominal amount of debt on the 1st January 1790, of which it makes no part, may be fairly estimated, at two millions of dollars. III. The Committee have deducted from the amount of debt due on the 1st January 1790, the sum of dollars 590,468. 60, and from the amount of debt due on the 1st January 1800, the sum of 5,826,214 dollars, being the esti- mated amount of uncollected Custom House bonds not yet due, but which may hereafter be received in the treasury ; and they consider those bonds as " funds acquired by government, and which may be applied to face the debt. ,, The constitution has given to government the command over almost all the resources of the United States ; and those resources may in a ge- neral point of view be considered as funds ac- quired to government by the adoption of the constitution. In what then do those Custom House bonds differ from the other general and uncollected resources of the country ? Not on account of the persons who owe them. Were duties on imported goods, for the securing of which those bonds are given, ultimately paid by the merchants who are answerable for those bonds, then indeed the people of the United States, who owe the public debt, might take C 28 ] credit for the amount of those bonded duties- payable by a few individuals. But those duties are paid by the consumers, by the people them- selves. The merchants are only the collectors of the duties, for which they become answer- able on the goods being imported ; and the ex- pence of collection costs to the consumers from 20 to 60 per cent, which the importers and other merchants receive, as a compensation for the trouble and risk of collection. The bonds are in fact a debt due by the people of the United States themselves, and which cannot be deduct- ed from, or claimed as a credit by them against, the mass of their public debt. The people of the United States owe the whole amount of the public debt whatever it may be, and the amount of uncollected duties. Give them credit for the amount of bonds given by merchants for the securing of those duties, and they remain still charged with the whole amount of the public debt without any deduction. Those bonds differ from the other resources of the Union, which government may also command, only in one particular, in that their amount and time of pay- ment are ascertained. And in that particular they in no way differ from every other tax of the ensuing year. Those bonds are nothing more than a tax assessed, but not yet collected, and they differ in nothing frcm the land tax, the amount of which was precisely ascertained, and C 29 ] which had been assessed in many of the states on the 1st January 1800, but was not yet col- lected. A farmer, whose tax was assessed, was as much indebted to government for the amount of his tax, as the merchant for his bond. Yet the committee have taken no credit for the land tax which as well as those bonds, was to be col- lected in the course of the year 1800. They have not even taken credit for the uncollected duties on spirits distilled and stills, although a great part of these were actually due. The Committee were aware, that a tax not yet col- lected cannot be considered as a set off against an existing debt ; that the probable amount of such a tax is never taken in account, except as making part of the probable receipts of the en- suing year and as applicable to the expences of that year. And it appears incredible that they should not have perceived that those bonded duties were precisely in the same situation with all other taxes to be collected the ensuing year; that they were, like other taxes, payable by the body'of the people, and that they constituted in fact two thirds of the probable receipts of the ensuing year, and were applicable solely to the expences of that year. The Committee say that those bonds are " funds which may be applied to face the debt." The Committee well knew that they could not be applied to pay the debt. No part of them can C 30 ] be applied to pay any part of the principal of the existing debt, unless there should be a surplus in the receipts of the present year over the current expenditure. And go far was this from being the expectation of Congress, that they autho- rized a loan of three millions and a half of dol- lars, in order to cover the excess of expendi- tures over the receipts of this year. The Committee say " that a considerable part of those bonds are pledged for the payment of the loans obtained from the Bank, and that ihose loans must in fact be discharged from the proceeds of that pledge. ,, The fact is, that those loans are stated by an official statement of the treasury department, to have (with the ex- ception of one of 2co,ooo dollars) been obtain- ed in 1795, to be still due, but continued on loan with the consent of the Bank. The pledge given was the surplus of revenue of 1795 and 1 796, which has long since been consumed : and the surplus of the nominal revenue of 1799, which consists of those bonds, is not probably pledged for those loans. But the Committee knew that those loans could not and would not in fad be discharged from the proceeds of those bonds. For, supposing that a nominal payment was to be made to the Bank out of the proceeds of those bonds, that is to say, out of the receipts of the present year, there would then be an ad- ditional deficiency to the same amount in there- C 3i ] ceipts of this year : and the same amount would immediately be borrowed again from the Bank, in order to coter that deficiency. The same thing would happen in case govern- ment were tq sell those bonds on a discount. This they might do, just as they might sell the land tax for the ensuing year, or for ever, as has been done in Great Britain. A nation may mortgage its future resources, or in other words, the probable future receipts of its treasury ; but in whatever manner this is done, it is always borrowing money in some shape or other. Should government sell those bonds, the amount must still be applied to defray the expences of the present year, or in case it was applied to the payment of a part of the public debt, a new loan to the same amount must immediately be ob- tained for the purpose of discharging the cur- rent expenditure. If the amount of those bonds is actually pay- able by the people themselves, and altogether inapplicable to the payment of any part of the debt, it cannot be deducted from the nominal amount of debt ; the only real difference which exists in the relative situation of our finances between 1790 and 1 Boo, being, that government has now been organized a suflicient length of time to have secured the payment of a conside- rable permanent revenue for iSco, and the en- suing years. Should they hereafter diminish C & 3 considerably the expenditure, without diminish- ing that revenue, the surplus would then be ap- plicable to the payment of the debt. But we must wait until that shall have been done, be- fore any part of the future probable receipts of the treasury shall be allowed as a credit against the existing debt. From those considerations it appears that the public debt may, according to the two different views of which the subject is susceptible, be cor- rectly stated as followeth : I. Nominal amount of debt. On ist January 1790. Amount sta'el by the Secretary of the Treasury - - 72,237,301.97 x/.W — difference for the interest on dornestic debt before 1790 - - - 17,670.46 72,254>97z. 43 Dubtff 1. Difference on the French debt - - 1,216.73 2. Premiums on Dutch debt - - 263,000. 3. Difference on interest on the <3»bt due to foreign officers - it, 616. 53 4. Grant to General Greene's Ps'ate - 71,453. 36 5. Debts discharged before 1790 - 15,927. 13 6. Proceeds of lands sold to Pennsylvania 151,302.41 7. Debt assumed for debtor states be- yond their proportion - - 2,000,000. 2,514,606. 16 Amount of debt on lit Jan. 1790 ^ - 69,740,366.27 C 33 ] On i st January i8co. Aanount stated by the Secretary of the Trcafury - - 79,403,820. 50 lutstanding ra debt, wid due to foreign ofocfra - - 100,184. 18 79,504,004. 48 1. Si* - k returned ftotn Hol'and - 20,373. 33 2. Premiums on Dutch drbt - - 59,000 3. A » 222,000 3C*>373- 3.3 An <;n 15 1 Jan. iScq - - 79,202,631. 1.5 O.i 1 st Jan. 179O . - 69,740,366.27 Nominal increase of debt fioci 1790 to i8eo - 9,462.264.88 The different items of which the debt consist- ed on those two days respectively, are exhibi- ted in the Statement No. I. annexed at the end. II. Comparative view formed by deducting, from the nominal amount of debt, the funds actually acquired by government. On 1 st January 1790. Nominal amount of debt as per above 69,7^,366.27 I » D rn- ir.t-.-.t to I I re- i if. bprcJe - - '.j. 74 Debts due under formsr govern- . Slate* and re- 7.4,091. 31 ;. C ■ - .:. \\ in treasury - z^,zjr;, 61 in Colledor's h 84 07 ■ — 35^447- S3 438,125.88 69,302,240. 39 E L 34 J On the i st January 1800. Nominal amount of debt as per above 79> 2 ° a >63i- '5 Dedu/l 1. Cash in Treasury 2,161,867,67 In Collectors' hands 532,247. Si 2,694,115.48 2. Remittances said to have been made to Holland, beyond the payments due in 1799 - 548,955. S4 ' 3,243,071. 32 Amount for 1st Jan. 1 Soo - - 7 5»959>5 59- 83 1st Jan. 1790 - - 69,302,240. 39 Leaves for increafe of debt for those ten yean, after de- ducting all the funds actually acquired by government, and which may possibly be applied towards a reduc- tion of the debt - ----J 6,657,319.44 And here it may be proper to observe, that the amount of Custom House bonds, credited by the Committee, and excluded from the above statement, is, for the ist day of January 1800, dollars 5,826,214; and, f6r the ist January 1790, dollars 590,468. 60. The difference be- tween those two sums is dollars 5,235,745. 40 ; which, deducted from the sum of dollars 6,657,319. 44, would still leave, even on the in- admissible supposition that those bonds ought to be deducted, an increase of debt, during those ten years, of dollars 1,421,574. 04. RECEIPTS fcf EXPENDITURES. THE preceding view of the public debt shows only the final result of the financial operations of government. The operations themselves will appear more clearly from an examination of the resources enjoyed by administration, and of the manner in which these have been applied. Hence an investigation of the receipts and expenditures of the United States is more important than a detached view of the debt itself. And this will afford, at the same time, means of ascertaining the correctness, not of the principles, but of the details of the preceding statements. There are two modes of ascertaining the pro- gress or diminution of the public debt during any given period. The first, which has "been pursued by the Committee and in the preceding pages, consists in comparing the amount of debt at the commencement and end of the period respectively. The second, which may be de- duced from a view of the receipts and expendi- tures, consists in comparing the amount of debt respectively incurred and extinguished during the same period. And if the same principles are pursued in both modes, the result must be the same in both, provided no mistake has been made in the details. The statements transmitted by the treasury [ 36 ] department to the Committee, in relation to that object, exhibit the receipts in the treasury and the expenditures by the treasury distinctly from those in Holland : but as the receipts in the trea- sury consist in part of monies drawn from Hol- land, and the receipts in Holland in part of monies remitted from America, the aggregate amount of receipts and expenditures in America and Holland, does not show the true amount of the receipts and expenditures of the United States. The following alterations in those statements are necessary in order to exhibit a correct amount of those receipts and expendi- tures. From both receipts and expenditures must be deducted From the amount of receipts in Holland and expenditures in America, monies remitted from America to Holland __--_-_ 5,621,660. 10 From the amount of receipts in America and or" expen- ditures in Holland, monies drawn from Holland to Amciica _-•-__- 2,808,941. 02 From do. monies repaid to purchasers of fix per cent, stock in Holland, being part of interest received on the same in America - - 14,226. 54 From the amount of receipts and expenditures in Am :- rica, the amount of Bills drawn on Holland, and af- ..rds cancelled, the same being a nominal tr.ns- adlion - - ... 2,cco,coo. From the amount of receipts and expenditures in Koi- mor.ies remitted from America to Holland for fa of the war and diplomatic departments, and charged, in the amount of expenditures in America, the proper depnrtmer.ts - 3%°3''8q Fruin do. monies lost en bills of exchange and deJucl- ed from the an;. on other Kills - - 14,814.85 Total deduc?tiens - - 10,496,734. 40 C 37 ] To both receipts and expenditures must be added *."Afl 1 .ing in hnn's of tlie late Paymaster et the commencement of th« jied to th« account of the war department - - - 107,605.07 z. Sale or' war 1 ice ex^endou in paying the ipal or" the public debt - - - 8,962. 5. As loan, consisting of the cost of hjps of war I and paid to the subscribers irr six per cent. th:.- account of Navy expenditures ... 929,230. 4. Pront on bills of exchange remitted from Holland to d to tiie account or pended ir. interest on the p-aL - 3^0,772.51 16,519. 5 s pts in Hol- lar. Lea --_-. 92,416,883.43 y _ J ^ J [As given by the Secretary ofthe Treasury, makesa sum of 93,^43,423.01 D which deducting the amount ofdedu&ioni as . abovc - io,496 > 734. 40 Leaves the amount of re ted in Statement No. 2. hereto an;. - 83,346,688. 61 The following transposition is also made in statement hereunto annexed No. 3, viz* The following sums which in the statement of the Secretary of the Treasury, are classed under the head of expenditures for interest ofthe debt, are here stated, as they ely were, as part of the monies applied towards the payment of the principal ofthe debt, io %M* 1. A sum of dollars 226,608. 70, being the interest which accrued till May 1795 on the debt purchased by the Commissioners of the sinking fund. That sum was paid as interest by the treasury, to the Commissioners, and applied by them to the purchase of the public debt. C 33 J 2. A sum of dollars 5,437. 93, being the dif- ference between 39,095 dollars and 80 cents stated, by the treasury statement, to have been paid for interest on the debt due to foreign of- ficers, and 2>3^57 dollars an d 87 cents, the whole amount of interest which accrued on that debt after the year 1789. From those statements of receipts and expen- ditures No. 2, and 3 hereunto annexed, it ap- pears that the whole receipts of the present go- vernment, from its commencement have been from — Ola drbts received - 502,667. 1-5 Loans - - , »5>77S»7s'5- 5 6 Sales of Bank stock - - - - J, Sales of Lard - I do, 339"; 84 Revenue - - 54,242,213. 54 Sundries - 1,541,412. 54 . L. 83,346,683. 61. And that the expenditures for the same peri- od, have been for Fay.rcnrs of principal of the debt - 20,654.847. 30 Subscription to the Bank of the United Star.; - 2,oco,oco. Interest of the public debt - - a7>«o9>43o. 35 Military establishment, includir.g land - - - a 21,286,420. 84 ;stabiishment,-including civil list and raiscellafieoM exge&SM 6,324,626. 95 ith fbreigta nations. - 2,8*0,539.66 80,63;, 3. ; 'ance unexpended, via. ( - 2,161,867. 6f 7 . d 544-5-4! 2 ' 71 °> S *3 51 83,346,688.61 C 39 ] The nominal increase of debt during that pe- riod may be deduced from those statements on the same principles already explained, in the manner following. ^oni-9?7- *3 Leave: for the true amount of monies applied to the re- duction of the debt after 1st Jan. 1790. - - 20,638,920. tj To which sum the following additions must be made. 1. A part of that sum, to ivit f dolls. 19281.24 were apj bam of the public debt j the amount pui- ?dwasdoHs. 2,307,661. 7 1 j the excess of debt purchased beyond the monies applied to purchases is - - 603,380. 47. 2. Exclusively of the receipts in specie into the treasury, payments have been made directly in evidence* of public debt, «**, for lands sold, dolls. 14,005. 93 ; in payment of old debts, dollars 24,091. 31 j and commuta- tion returned by sundry officers, in or- der to be placed on the pension Use, dolls. 32,^73. 71, amounting all t ther to - - - 7*>S" 3. The Bank mares still owned by United States, at 25 percent, advance 1,110,000. 1,869,351.4a. Total amount of debt extinguished from iscj.in. 1790 to 1st Jan. 1800, considering the sank shares owned by United States, as C4uiv^lcnt to a debt extinguished - 22,508,271. ^9 The monies received on loan are stated at ~5>775>~95- 5^ To which must be added I. The difference between the nominal amount of si^ per cent, stock issued in j 796, 1/;;-?. 80 coo dollars, and the amount of money for which the same was soiti, 97°>53 6 - 47 From which deducting the amount cA debt extinguished per above • - 22,508,271. 59 Le;:ves for the nominal increase of debt during that pe- "J ri /d (being the same amount heretofore deduced from / , 2 g gg a view of the amount of debt existing at the com- f •''^ ' mehcemeht and end of the period.) J The Statement No. 4, exhibits a comparative view of the debt incurred and extinguished to the ist day of Jan. i3oo \ by which it appears, 1. That the nominal increase of debt from ist Jan. 1790 to 1st Jan. 1796, amounted to dollars - 8,552,978. 59 Which sum con^ist^d of three items, vhi. Interest accrued and funded instead of being paid - 4,184,740.91 State debts assumed for debtor States beyond their proportion - 2,000,00a. txwL-ss of expenditures beyond the receipts 8)368,237. 68 2. That thare was a noreinal decrcstc of debt From 1st Jan. 1796, to 1st Jan. 1795, amounting to - - - 3.874,524. 74 ?. And that the debt incr#as©d during the year 1799 W' a sum of - - - 4,783,811-03 It is believed, that those different views of the subject, all agreeing in their result, afford sufficient proof of the correctness of the details, and exhibit all the facts in such a manner as to put it in the power of every attentive reader, to C 41 ] distinguish and form a judgment on every ques- tion on which a difference of opinion does exist. The next important consideration is that of the true amount of monies collected from the peo- ple, and of their application. It appears by the statement of receipts, No. 2, that the monies received for balances of old ac- counts, loan?, and sales of bank stock and land, together with the profits on exchange, amount to dollars 27,977,382. 31. If from that sum are deducted, the monies applied to the reduc- tion of the debt, and to the subscription to the Bank, and the balance remaining unexpended on the 1st January 1800, either in America or IB Holland, which several items arc stated in statement of expenditures No. 3, to amount to dollars 25,365.670. 81 ; the balance, amount- ing to dollars 2,6 1 1 ,7 1 1 . 50, added to the whole amount of monies collected from the people, will be found to have discharged the whole cur- rent expenditure of the nation. The current expenditure has, therefore, exceeded the ordi- nary revenue by a sum of 2,611,711 dollars and 50 cents ; although that current expenditure has been diminished by funding, instead of dis- charging interest on the public debt, to the amount of dollars 4,184,740. 91. The whole of the current expenditure for in- terest on the public debt and the military, civil and foreign expenses, by statement No. 3, ap- r C 4* ] pears to be 57,981,017 dollars 80 cents: and the amount ui " revenue and sundries," by statement No. 2, nppears to be 555369,306 dol- lars 30 cents ; which added to the balance above stated, of 2,61 1,711. 50, constitute likewise an aggregate of 57,981,017 dollars and 80 cents. But these sums are only an apparent and not the true amount of the monies collected from the people, and of the current expenditure. For, 1 st, the amount of " sundries" consists princi- pally of repayments, which ought to be deduct- ed,, respectively, from the expenditure of that department to which they were originally charg- ed ; and of interest received, either as dividends on the Bank shares owned by the United States, or on stock of the public debt purchased from the Bank by the United States and remitted to Europe ; in both which cases it may properly be considered as an offset against, and be deducted from the amount of, interest paid by the United States on the public debt, sdly, Some similar deductions must be made from the amount of 393« a. Forfeitures for breaches of revenue law in 1799 - 12.34a. 31 Amount of profit on notes and remittances, to be added to the above stated balance of 2, 611, 711. 50, which ba- lance includes other similar profits - - 23. S2 Total amount of the item " Sundries" in statement No. 2 1,127,092. 76 II. The following items, part of the sum of dollars 2,059,211. 61, stated as the amount of miscellaneous expenses, ought to be deducted from the nett receipts of revenue, being princi- pally expenses of collection. Part of the expenses of collection of duties on imports. 1. Payment of demands for unclaimed merchandize 763*28 a. Payments for building revenue cutters - 623*02 i>jS6. 30 Purchase cf vellum, &c. for stamp duty, being part of the ex- pense of collection of internal duties - - 3>°83- C'O 4,469. 90 [ 45 ] There may be some other expenses of the same nature, amongst some of the items which constitute that article of miscellaneous expenses, and which should also be deducted from the net amount of revenue or added to the expenses of collection ; but as they are not distinguishable in the statements annexed to the report of the committee, they shall not be noticed. It will, however, in this place, be proper to state, that in the amount of dollars 592,905. y6 stated as the civil list expenditure for 1799, are included 159,076 dollars and 10 cents expended for the valuation of lands and dwelling houses, and which ought in the present view of the subject rather to be placed under the head of " expenses of collection," than as part of the civil list ex- penses. III. The apparent amount of revenue as stated in statement No. 3, and amounting to dollars 54., 242, 213. 54, consists of the following items as stated by the Secretary of the Treasury. Duties on imports and tonnage - 5^,321,525.77 Internal duties - - 3,632,768. 93 Postage of letters - lfto,8oS. 84 Fees on patents - - - - 7,110. 54,242,213.54. In that amount of internal duties are included the drawbacks paid on the exportation of do- mestic distilled spirits, refined sugar and snuff, [ 46 ] or rather as much of those drawbacks as are re- turned to the exporter on account of the duty on the manufacturer. As those drawbacks are paid by the collectors of duties on imports and tonnage, they diminish so far the payments made by those collectors in the treasury, which consti- tute the apparent receipts from those duties. The amount of those drawbacks should there- fore be deducted from the amount of internal duties, and added to the amount of duties on im- ports and tonnage. The total amount of drawbacks paid to the end of 1-98 on exported domestic distilled spi- rits, is stated by the treasury department at dol- lars 547,039. 47 ; and supposing the drawbacks for 1799 equal to those of 1798, the whole amount of drawbacks on spirits to the 1st Jan. 1800, may be stated at - 590,000. The total amount of drawbacks paid to the end of 179S on eipoitfd refined su^ar, is stated at 39,681. 71, and in- l paiJ during 1 799, may be estimated at - - 43,000. count ut "drawbacks paid Ion exported snuff is about - - 21,000. All together 654,000. But as the drawback on spirits, includes not only seven cents per gallon returned as the duty on the manufacture, but also a duty which has ed from 3 to 4 cents per gallon, returned as the duty laid on the importation of molasses ; and as the drawback on refined sugar is also in on account of the duty of 1 cents per [ .47 ] pound on the manufacture, and in part on ac- count of the duty on brown sugar imported, it is necessary to make the proper deductions from the total amount of drawbacks, as paid at the Custom Houses ; and it will be found that the true amount of drawbacks, paid on those arti- cles, solely on account of, and returned as the amount of the internal duty laid on the manu- facture is - for spirits 447,000 dollars, for re- fined sugar 17,000 dollars, and for snuff 21,000 dollars, all together 485,000 dollars; which sum deducted from the apparent amount of internal duties, and added to the apparent amount of duties on imports and tonnage, will make the amount of duties on imports and tonnage ----- 50,806,525. 77 And the amount of internal duties 3,147,768. To these sums thus corrected it is necea to add the expenses of collection. The expenses of collection, paid out of the revenue, on the duties on imports and tonnage, from the commencement of the present govern- ment to the 1st January 1799 amount to 2,08 S, 1 53. 34. Valuing those for 1799 at about the average of those of 1797 and 1798, 1;.:. dollars 361,846. 66, will give for the whole 2,450,000 dollars. In addition to these, the officers receive fees paid by individuals, and C 48 ] which, although they are not brought in the ge- neral account of revenue, are not less monies collected from the people, and a part of the ex- penses of collection. The whole amount of fees received by the collectors has never, it is believ- ed, been stated ; but that of several years has been transmitted to Congress. The fees receiv- ed during 1798 amounted to 101,000 dollars, and by comparing the amount of several years, it appears probable that they amount to about one and one half per cent, of the whole amount of monies paid for those duties in the treasury, or to about 760,000 dollars from the commenc- ment of the present government, to the 1st of January 1800. The whole of the expenses of collection of those duties, may, therefore, be computed at 3,210.000, which is about six and one third per cent, on the total amount of net receipts in the treasury, or something less than six per cent, on the amount of monies collected from the people on account of those duties. The receipts from the duties in 1798 were 7,106,061. 93 ; and, adding the drawbacks on spirits, refined sugar and snuff, amounted to 7,137,976. 54. For that year the expenses of collection paid out of the revenue were dollars 376,063.43, and the fees 101,000 dollars, in all 477,000 dollars, or near six and two-thirds per cent, on the net receipts in the treasury. The expenses of collection, on the internal C 49 ] duties, are estimated by the Secretary of the Treasury to have amounted, from their com- mencement to the close of the year 1798, to dollars 602,080. 26. Those for the year 1799 cannot have been far from 150,000 dollars. The gross amount of the emoluments of the of- ficers for the year 1798, exclusively of the con- tingent expenses (valued at 10,000 dollars) amounted to dollars 125,781. 76 ; and their sa- laries and compensations were larger in 1799 than in 1798. The total amount of expenses of collection, for that class of duties, may, therefore, be estimated to the 1st January 1800 at 750,000 dollars, being almost 24 per cent, on the net receipts in the treasury during the same period, or about 19 and one half per cent, on the amount of monies collected from the people on account of those duties. The total amount of expenses of collection lor both classes of duties may, therefore, be esti- mated at 3,960,000 dollars. IV. The monies received by the several col- lectors and supervisors, and not yet paid into the treasury, are either ascertained by a settle- ; . of accounts, or yet unknown, and depend- ing on a future settlement of accounts. It appears, that on the 1st January 1799, the balances due by the collectors of the customs, and ascertained to consist of cash in hand, amounted to dollars 888,368. 64. On the G L 50 ] same day, there was a sum of 1,428,948. 5,8, stated to be nominally due by collectors, but consisting partly of duties uncollected, and partly of cash in hand. Supposing the cash in hand to have borne the same proportion to the whole sum, which the ascertained sum of dollars 888,368. 64 bore to the gross amount of uncol- lected duties and cash in hand, charged to the collectors who owed the said ascertained sums, that cash in hand (part of tjie above sum of dol- lars 1,428,948. 58) must have amounted to something more than 123,000 dollars. The cash in hands of collectors of customs may, therefore, be estimated to have been on the 1st January 1799 about one million of dollars. * The statement from whieh those sums are ex- tracted, was laid before congress in April — May 1800, and was probably completed by the trea- sury department in March 1800. It exhibits the names of one hundred and one collectors ; the accounts of ninety-four were settled at that time, (March 1800) to the close of 1798 ; and only seven were not settled to that day. Of those seven, three were collectors not in office. The balances stated to be due by the other four, were due on the days to which their accounts were settled (31st December 1797, and 30th Jane 1798) and might be something more or less on the 31st December 1798. The diffe- rence could not, however, materially change the C |i 3 result. Of the afcertained sum of 888,368 dol- lars and 64 cents in hands of collectors on the 1st January 1799 ; 221,538 dollars and 9 cents were due by eighteen late collectors, sixteen of whom had, on that day, been more than one year out of office. The accounts of the supervisors of the inter- nal revenues, are far from being settled in as satisfactory a manner, as even those of the col- lectors. By the same statement, it appears, that on the 1 st January 1799, there was a sum due by supervisors out of office, amounting to 31,183 dollars and 24 cents : that at the time when the statement was completed (March i8co) the ac- counts of eight supervisors in office, were settled to the close of 1798 ; the cash in hand, of those eight officers, amounting on that day to dolls. 99,518.20; that at the same time, (March 1800) the accounts of six other supervisors were settled, either to the 30th June 1797, the 31st Dec. 1797, or the 30th June 1798; that the cash in hand, of five of these last supervisors, amounted to 114,340 dollars and 72 cents, at the time respectively when their accounts were settled ; a sum which may have increased or di- minished since that time ; that the uncollected duties, and cash in hand (both blended together) charged to the sixth, amounted to 108,027. 26 on the 30th June 1797, date of the settlement L 52 ] of his account — and that the accounts of the two other supervisors, (Pennsylvania, Kentuc- key, and N. W. Territory) have never yet been fettled. From those data, it is impossible to ascertain with precision the monies in hands of the supervisors ; and it must be added, that there are also sums of money in the hands' of the collectors of the internal revenues, which are not ascertained. This points out one of the principal causes, why the accounts of the super- visors are not settled as punctually as those of the collectors of customs. Those have only to settle each their respective accounts ; but the supervisors having under them inspectors and collectors of the internal revenues, the unsettled accounts of any one ol those collectors is suffi- cient to prevent the final settlement of the ac- counts of the supervisor. In one of the statements (No. 8) annexed to the report of the committee, the balances in hands of the collectors of customs, at the close of 1799, are stated at only 447,296 dollars and 1 7 cents ; and those in hands of the supervisors, at the same date, at 84,951 dollars and 64 cents. That account can be reconciled with the preced- ing on three suppositions — either that in the ac- counts of receipts and expenditures from which the preceding facts are extracted, the amount of duties actually due, but not yet paid, are considered as cash in the hands of collectors, [ 53 1 or that the balances had been considerably di- minished by payments during the year 1799 — or that the statement, annexed to the report of the committee, exhibits only the sums positively known to be subject to the disposal of the trea- sury, excluding all sums not actually settled, and all those which, on account of insolvency of of- ficers of the revenue, or of other circumstances causing a delay, could not immediately be re- ceived in the treasury. Although, therefore, it is probable that an amount of about 1,400,000 dollars has been col- lected from the people, over and above the re- ceipts in the treasury, and expenses of collec- tion, as it is difficult to ascertain, with any de- gree of precision, the real amount, as the object of this enquiry is principally to show the appli- cation of the monies collected from the people, and as the amount in the hands of the officers of the revenue, whatever it maybe, is yet unexpend- ed, it may be omitted in the present view of the subject. From those data is deduced the following statement of the amount of monies collected from the people, and of their application. The only part of that statement grounded on estimate, is that which relates to the expenses of collection; and as those expenses are added, both to the amount of monies collected, and to that of expen- diture, any mistake there affects not any other result. [ 54 : The revenue arising from duties on imports and ton- nage, including; expenses or' collection, and making the icviral allowances tor drawbacks, forfeitures, cutters, and unclaimed merchandize above noted, was - 54,015,374. 78 The revenue arising from internal duties, including expenses of collection, and making the allowances for drawbacks, and? purchase of vellum above noted - 3,894,685. 33 The revenue arising from postage, excluding the ex- penses of collection, which, in relation to that re- venue, are not considered as monies collected from the people, but as the payment, by the persons re- ceiving letters, for a benefit immediately accruing totheai - - 2S^,So8. 34 Tiie revenue arising from fees on patents, &c. - 7»ii°. Total amount of monies collected from the people,"^ from the establishment of the present government | to the isr January i^oo, exclusively of the rnonk-s y - 58,201,478. 95 leceived by the collectors of the revenue, and not I yet paid by the people J ■ And that sum, together with the above men- tioned balance of dollars 2,61 1,7 - 5. 32, consist- ing of the excess of the proceeds of loans, sales of Bank stock and lands, balance arising from the former government, and profits on exchange over the sums applied to the subscription of the Bank, and to the payment of the principal of the public debt, and with the above noted item of 23 dollars and 82 cents, arising from profit on remittance, &c. make an aggregate of dollars 60,813,214. 27, which has been expended in the following manner. 1. Interest on the public d?bt, deducting the amount 1: dividends on Bank thave-i, interest on f.ix percent, stock, and repayment above Stated - - 16,54.1,003. 4 1 il li ;, including the expences of assessing the land tax, and deducl'mg the amount pf penalties for crimes above sta - - 4,160,76s. S4 I f rward - - - 30^04,77*1*5 [ 55 J Brought forward - 30,804,772. 25 3. Miscellaneous expenses, deducting the repayments for the Indian department and light houses, the pur- chase of vellum, cutters, Sec. and the amount of and h.ilf cents coined at the mint, and consist- ing of the folio. ving items, viz. isions to invalids - - 908,607. 34 2. Indian treaties and trade - 183,525.23 3. Light house establishment - ^^^,jS^. 92 4. Mint do. (a) - 86,581. 63 5. Annuities and grants, including "J that to General Greene's estate, and one ( » of 1 5,000 dolls, to the French refugees f ^ ' °° - 3 from St. Domingo J 6 Census of the inhabitants of the U.S. 443,77-. n to the ci^y of Washington 100,000. 8. Contingent and miscellaneous demands 197,15c 6. Land military establishment, deducting And tales of aims, vis. 1. Armv - - 11,314,639.42 2. Fortifi utions - >93*- 54 3. Purchases of arms and stores 848,223. 23 4. Expenses attending mil ditions in Pennsylvania, rettions in 1794 and 1 1 ' ■■ -ooe. 1,992,833.41 4. Expenses of collection of the revenue estimated at 3,950,000. 5. In -r 1 foreign nations, deducting a re- payment above noted, viz. 1. Support of Ministers and incidental expenses - - - 759>2Q3- 76 2. Protection of American Seamen 5 44 26^913. - 5»»39> ■0? The annuity to be paid to the Dey was stipu- lated at 24,000 dollars a year, payable in naval stores; which, as the rate at which they were es- timated, is lower than the actual price, will cost 72,123 dollars and 31 and a half cent? ; making for the years 1796 — 1799, a sum of dollars 288,493. 26. The extraordinary extortions arise from de- mands, with which our agents think themselves obliged to comply, in order to preserve peace. The Dey wished the United States, once, to [ 02 ] build vessels fit for cruising for him, which he was to pay out of the annuity. A sum of 47, coo dollars was appropriated in July 1797 for that purpose, and two or three vessels actu- ally built for him. Whether he has consented to a deduction from the annuity, on that ac- count, is not known to the writer. lie also in- sists that property, belonging to his subjects, and freighted on an American vessel, shall be paid by the United States, whenever the vessel las been captured by one of the belligerent powers ; and at the same time pretends, that he has a right to compel any American vessel in his ports to take freight for him. On account of sundry demands of this kind, an appropriation was made in the session of 1798 — i799» The whole appropriation, which embraced several other objects relative to the Mediterranean powers, was for 200,000 dollars ; 72,000 of which were expended in 1799. What propor- tion was applied to Algiers does not appear ; but supposing it to have been dolls. 33,125. 71 : the account will iland thus : Treaty, - - - 1,131,391. 03 Annuity for four years, - 288,493. 26 Extraordinary extortions, - 80,115.71 making in all, dollars 1 .500,000 It is to be recollected, that part of those cal- culations are grounded on efrimates laid before C 63 ] Congress, and the appropriations made accord- ingly ; and not on the account of the Ultimate expenditure of the money. The items relative to the price of naval stores, to the cost of the frigate and other vessels, to the sale of the last parcel of fix per cent, amounting to 240,000 dollars, and to the item of extraordinary extor- tions, may, therefore, be found to amount to somewhat more or less than is here set down. But the difference cannot be great ; and as the sum of dollars 1,682,422. -7 has actually been disbursed by the treasury, the only question is, whether a greater or less part of that sum has been expended for the other Mediterranean powers, than 182,422 dollars and 77 cents. Having mentioned the loan of 800, ceo dk obtained from the bank, in six per cent stock, it is proper to add that, in the same year, 1- the treasury purchased from the Bank another sum of six percent, slock, amounting to dollars 660,373. 33 aiK l remitted the same to Holland, in order that the proceeds might be applied the payments of interest and principal on the Dutch debt. Of that sum 160,000 dollars v to have been purchased in April, and 500,000 dollars in September 1795, anc * ,00tn purchases at par. Six hundred and forty thousand dolls, of that stock have produced in Holland 532,107 dollars and 34 cents. The remaining 20,373 dollars and 33 cents have bfeen . I to the r 64 ] treasury, and have been noticed in the course oi these observations. The loss on the part sold has been 107,892 dollars 66 tents, and on the loan of 80c, 000 dollars, wa--. 114,427 dollars and 78 cents. By thost transactions the Bank has obtained specie for 1,460,000 dollars of its six per cent, stock at par, and the United States have lost about 220,000 dollars. II. It has been stated, that from the establish- ment of the present government, until the closed 1795, the current expenditure had exceeded the receipts by a sum exceeding two millions and a half of dollars ; from whence had resulted an in- crease of debt to that amount, exclusively of that increase s owirtg to the accumulation of interest on the domestic debt, which was funded instead of being paid, and to the assumption of state debts, in favour of debtor states, beyond their proportion. But it appears, by statement No. 5, that during the years 1796, 1797 and 1798, the receipts exceeded the expenditure by a sum of 3,874,524 dollars and 74 cents, which produced a diminution of debt to the same amour f. This was owing immediately to an augmentation of revenue and to a diminution of expenses. The diminution of expenses was produced prim ' ly by the reduction of the military cst< made by the fourth Congress ; and the inc. or revenue was owing partly to additions to impost and some other taxes laid by the L 65 ] Congress, partly to the increase of population, and partly to the increase of wealth occa- sioned by the neutral situation of the United States. The far greater part of the revenue ; drawn from duties on consumption, any increase in the number or wealth of the con- sumers produces an increase of revenue, inde- pendent of new taxes. On the other hand, the real increase of debt during- 1799 was 4,783,81 1 dollars and 3 cents. One year of hostility ad- ded one million more to the public debt, than had been paid oil' in three prosperous years of neutrality. Not only a debt was created, but that reduction of the public debt, which other- wise would have been effected, did not take place. The revenue of 1796 and 1797, exclusively of loans and sale of bank stock, exceeded the same revenue for 1798 and 1799 by only 200, coo dollars : and the payments for interest en the debt in 1796 and 1797 exceeded those in 1798 — 1799* by near 300,000 dollars. Had therefore, no change of circumstances taken place, had no additional expenses occurred, a reduction of debt would have been effected in 1798 and 1799, at least equal to what was ef- fected in 1796 and 1797. The net amount of debt discharged, during these two years, was dollars 3,046,028. 6c. The net amount of debt hn'urrtd during 1798 and 1799 is dollars I [ 66 ] h955>3 l 4' 8 9* r i"he difference resulting from the additional expenses, incurred during 1798 and 1799, appears, in this view of the subject, to amount to seven millions of dollars. A more precise result may be deduced from a conside- ration of the expenses themselves. The whole amount expended for the military establishment, navy included, during the years 1796 and 1797 was (Statement No. 3.,) dollars 3,026,042. 79. The whole amount expended for the same objects, during the years 1798 and 1799 (deducting dollars 80,007. 66, expended on account of the insurrection in 1799) is dolls. 9,566,669. 85. The difference is dollars 6.530,626. 79. And as the revenue for these two last years was less than in 1796 and 1797, no part of that expense has been defrayed by an additional revenue ; but the whole has been paid, either by a revenue which otherwise would have been employed in the reduction of the public debt, or by creating a new debt. The public debt was, on the 1st January 1800, almost five millions of dollars larger than it actually was in the middle of 1798, and precisely six millions and a half larger than it would have been, had not those additional expenses been incurred. In order to have a complete view of the direct loss caused by the additional expenses, it is ne* celfary to examine what will be the result of the year 1800. [ 67 ] The army establishment for the year 1797, cost, dollars 1,062,299.04. The additional expenses authorized in 1798, in relation to that object, consisted, exclusively of the purchases of arms and ammunition, of about 3,000,000 dol- lars, one million applicable to a permanent in- crease of the standing army, and two millions necessary for the support of the additional, or temporary army, which has lately been disband- ed. Had the increase taken place the moment it was voted, it would have produced an addi- tional expense of four millions and a half for the six last months of 1798 and the year 1799. As the recruiting service did not immediately com- mence, and proceeded gradually, the whole ad- ditional expense, including purchases of arms and military stores, was, for those 18 months only, dollars 3,415,748.60, and has already been taken into consideration. The estimate for 1800, was originally made en a supposition that the whole establishment would be filled and continued, and for the army, exclusively of arms and ammunition, exceeded four millions of dollars. The suspension of the enlistments in January 1800, made a saving of one million ; and the disbanding of the additional army will save after 1800 another million; but as the troops were disbanded only in June, and al-'owed three months extra-pay, there will be no more than 300,000 dollars saved on that head this [ 63 ] year. The expenses for the military establish- ment, including the navy, are, therefore, calcu- lated as followeth : Army - - - - 2,700,000 Navy— pay, provisions, contingencies - 2,500,000 Towards building six 74^ - 700,000 3,200,000 Purchase of arms, ammunition, and military stores esti- mated by treasury at 1,000,000; supposed to be expend- ed in relation to this object - 600,000 Probable expenses of 1800 - 6,500,000 The average expense of 1796 — 1797, was - - 1,500.000 The additional expenses for 1800 will be Which five millions added to the six millions and a half, extraordinary expense for the latter part of 1798, and for the year 1799, make an aggregate of eleven millions of dollars and a half for the extraordinary expenses of the military and naval establishment from June 1798, to the close of 1800. C 6 9 ] The following Estimate of the Receipts and Expen- ditures of the Tear 1800 will show the Pro- bable Increase of Debt for that Tear, EXPENDITURES. Interest on the public d. bt - 3,5^0,000 Civil fitt and miscellaneous - - 1,200,000 Expenses or' intercourse with foreign nation! - 400,000 Military and Naval establishment, per above - 6,500,000 Current expendi'uie 11,600,000 Payments of principal of the debt, including reimbursement of iix per cent, stuck. - 1,200,000 ■ . Total 12,800,000 RECEIPTS. Impost, incluJing increase arising from additions made this ye; r 7,zoo,ooo Internal revcrae - - 800,000 Probable receipts of land tax, as estimated by the Secretary - i ,200,000 DiviJends on Bank, stock, duties on postage - - 100,000 Revenue - - 9,300,000 There were, on tst Jan. 1800 more than 2 millions of dollars in treasury, of which, applicable to the current ex? tares as estimated by the Secretary - - I,ooo,ot:o Probable amount of the new loan - - 2,500,000 1 ly? OO, OOO Deducting the 1,200,000 dollars to be ap- plied to the redudion of the debt, from the loan of two millions and a half, will leave for the increase of debt 1,300,000 dollars. It appears, therefore, that the extra expense of eleven millions and a half has been, or will be ultimately paid by l. The increase of debt in 1799 - 4,780,000 in 1800 - 1,320,000 2. The additional probable revenue of 1800 Land tax - 1,200,00* Additions to the impost - - 300,000 6,:oj,co» I, 500,00* %. That part of the ordinary revenue of 1 798, 1799 and 1800, which, otherwise, would have been applied to the reduction of the debt— about - 4,000,000 1 1 ,600,000 [ 70 ] Had no extraordinary expense been incurred, and the additional taxes, (land tax and additio- nal impost) been still raised, the public debt would have been, on the ist January i8co, eleven millions and a half of dollars less than it will be. But if, which doubtless would have been the case, the additional taxes had not been laid, the public debt would have been on that day, ten millions of dollars less than it will be. The difference to the people of the United States 13 ten millions of debt, and one million and a half additional taxes. It is even probable that the real loss caused by the measures adopted in relation to France, amounts to more than eleven millions of dollars and a half. The average of the receipts from impost and internal duties, from the ist January 1796 to ist January 1798, was in round numbers 7,580,000 dollars a year, and for the years 1798 and 1799 was 7,570,000 dollars. Yet the following taxes operated either exclusively, or almost altogether in favour of the revenue of the two last years. 1. Duty of half a cent per pound on brown sugar, estimated at 200,000 dollars, and of two and a half per cent, on sundry goods, estimated at 200,000 dollars making all together 400,000 dollars, were laid in 1797, and operated neither on 1796, nor on the first months in 1797. 2. A duty of 8 cents per bu hel on salt, esti- mated at 2co,cco dollars, was laid in 1797, and [ 7i J operated neither in 1796, nor in the first nine of 1 797. 3. The stamp duties estimated at 200,000 dollars, operated only from 1st July 1798. Had there been no diminution of revenue arising from other causes, the average amount of receipts for 1798 and 1799, should have ex- ceeded that of 1796 and 1797, by the following sums. 1. The proceeds of duties on sugar and other articles should have been for 1798 and 1799 dollars 800,000, and for 1797, dollars 200,000, the difference is dollars 600,000. 2. The additional salt duty for 1 798 and 1799, dollars 400,000, for 1797 only dollars 50,000 — difference, dollars 350,000. 3. The stamp duties for one year and a half, dollars 300,000. Those three items amount all together to 1,250,000 dollars for the years 1797 and 1798, or 625,000 a year. The average revenue of these two last years, should have exceeded that of the two preceding years, by 625,000 dollars, but the contrary fell short of it. The revenues existing in 1797 experienced, therefore, a dimi- nution of 625,000 dollars a year in 1798 and 1799 ; and that diminution fell principally on the year 1799. Several causes have probably combined in causing that diminution. So far as the suspen- C 72 J sion of the commercial intercourse with France, may have diminished the profits of commerce, or the price of any of our exports, the income of the consumers has been diminished, and so far the consumption of articles paying a revenue has decreased. It is not the object of this en- quiry to attempt to ascertain how far that cause may have diminished the revenue. Still less is it intended to investigate the necessity, or ad- vantages of the measures which have authorized the extraordinary expense of those three years. It is sufficient to have shown that, independent of any indirect loss in the revenue, the actual cost, from the accounts* already produced, ex- ceeded six millions and a half of dollars, for the first eighteen months of hostilities, and will, from the estimates, which have been made by the departments, amount to eleven and a half millions at the close of this year. No. i. Statement of the Public Debt on ist Jan* 1790. and ist Jan. 1800. On ist January 1790. Foreign debt, French debt, including arrear. of In- terest - - - 7,895,300. 39 Spanirh debt, do. do. 241,580. 95 Dutch debt, do. do, 3,600,000. Dolli. Cti. 11,736,981.34 197,810. al Foreign Officers , Principal Arrearages of interest 186,988. 23 10,822. 05 Domestic Debt, Principal ac funded oii^iiully Deduct payment to Pennsylvania - 27,768,297.85 sold 90,674. 16 -3- 6 9 Value off apcr rr.on.- fur 1 - 480,823. 83 Unsubscribed registered A - 86,561. 34 aS, 245,008. 86 Interest to ist January 1790, (deduct- ing dollars 22,438. 58, intereston debt due to foreign officers) - 11,213,737.41 Deduct received in payment of lands sold to Pennsylvania - 60,718. 25 11,153,019. 16 39,398,013. 02 Assumed debt 9 Principal of srate certificates assumed 15,082,771. 33 Interest prior to ist Jan. 1790 - 1,379,110. 85 16,461,882. 18 Deduct assumption for debtor states beyond their proportion, vf*. 2,069,565. 71 including interest to 1st Jan. 1792, and without the interest after ist Jan. 1 -92, estimated - - - 2,000,000. 14,461,88a. iS Balances funded in favor of creditor states 3,517,584. *7>979>466". 18 Uufunded debts discharged ia specie - 428,080.45' Public debt on Jan. I, 1790 - 69,740,366. 27 K No. i Continued. On the i st January 1800. foreign debt - 10,760,000 Old six ptr cent, norr.inal deducing amount transferred to sinking fund - 28,225,669. 63 Deduct the reimbursements - 3,215,575. 37 2^,010,094. 26 Deferred stock, dedu&ing amount trans- ferred to sinking fund - - 13,682,944. 17 Three per cent. do. do. • 19,086,708. 54 Five and a half per cent. do. do. - 1,847,500. Four and a half per, cent. - 176,000. -— — 59,803,246. 97 Outstanding debt due to foreign officers, and registered debt 100, 184. 1 S Six pet cent, stock of 1796 - - - 8j,ooo. Eight per ceat. ----- 5,000,000. Six per cent, navy stock - 923,200. ■ " ■ 6,009,200 Temporary loans obtained from the Bank - «■ 3,640,000 Public debt on the 1st Jan. 1800 - 80,312,631.15 Deduct Bank shares owned by the United States at 25percenr.advar.ee ----- 1,110,000 79,202,631. 15 Public debt o« 1st Jan, 1790 - - 69,740,366.47 Increase of debt from I 790 to 1800. - 9,462,264. 88 ft; '** coo O = D 3 a I s-rs = • 3 o -O «* 3 a» a» 5> ar. 3 o o gl 3 3 5-o.g-S: X o o w ¥ 3 ^.. °- O > Ui -,' — 3 -o V = «u 3 S rn 1. 9 a M --J oo so ~j ^-j -^ ^1 ^-J ^J %J ^J -vl S VO>0\0 O^sO SO SO SO so ■ sO OO-vj 03 l>> v» ■ o « £ H w o^« st <-n 00*. - -t — G> NO ^J ^J n s-a ♦ — - 9 -j wof s*i -^ Ui OO ti m a - 1>J OssO MsOl^iLn V5-./S IS ^j •O OOs« -♦*• -vi 00 u • 3 9 7; O OS £0 uj uj Os — O t^ ■^J K) O O N *■» O O o O O -f* «0W o o o o o o o O O o O O O so O O O O O O sy* so 5 41 x O a i~» '/- so n • 00 »s> O Os O O o s. » «• I SO in OO Os-t» s*i . oj O Os » ^J ^1 WM'^l -r, -T>. „1 -£. > "-1 - "sO - Vo\w wsOsO -ii O OuiC -O-^sOsyi* WvO 'oO^b N sV o fl V O i -JwJW Os- OsC - ^ 1 i-n ,• "0 'oo'V* O » 1 C> T» 0"t*> J* «J /> M Os 0« N - ON O* Si 3 >3 1 5- ft* 3 "5 00 »£' y S? 4>-so OS -t» P OS C/J-> 00 - -v 00 . sO 0O Os — 1 OOsAi w 00 K .p " O <-o OOSO ji, n vl vj 4k O^l OSOO ■^ CMn ^> - w M C OS ■ OC4» Crt O sO - Os OOs»> I 8s5 £ s5 N^ s -" CO — O OO CNSC i/HOsj >4« 9 3" * 5 8 ^> • £ •^ «* ts to o >- oo oo y^ «-• v, ■<*■ jJn. t^ vr <-o to toO t~>. 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Z r 'czd l P^) l cz j £i LzVSi >sip sqqsp § I eg •LV$ t tS$ t oz •" "ON 7( ' ' 1C P!' •" uoi^pnpaj aip oj pan y II ■■■ UNIVERSITY OF CALIFORNIA LIBRARY BERKELEY Return to desk from which borrowed. This book is DUE on the last date stamped below. ■ lO ^e'620WX J Wr.. i "28Apr52KF i5Apr5 2U FEB 7 1955 ©CIS pr'57PW RECD lD m N0V2O'63"12M 4f » "■1981 ■ RECD LD MAY 1 1957 RECEIVED U6 221981 NOV 2S '66 -10/)$ cm. JUL 2 7 ' joT LOAN DEPT. LD 21-100m-ll,'49(B7146 sl6)476 M552936 Q3 Iftnl