Reducing the funded debt on the 1st of Oct. 1822, to 93,043,019 67 It is estimated that, in the 4th quarter of the present year there will be paid Viz. Reimbursement of six per cent. 2,265,588 7 265,588 7 2,000,000 0 90,777,431 60 27,437 0 Which will reduce the funded debt unredeemed on the The amount of Treasury notes outstanding on the 1st of And the amount of Mississippi stock unredeemed on 3. Of the Estimate of the Public Revenue and Expenditure for the Year 1823. The gross amount of duties on imports and tonnage which accrued from the 1st of January to the 30th of September last, both days included, is estimated at 19,500,000 dollars, and that of the whole year at 23,000,000 dollars. It is estimated that the amount of debentures issued during the same period exceeds the amount issued during the corresponding period of the year 1821, by 86,000; and that the amount of debentures outstanding on the 30th of September last, chargeable upon the revenue of 1823, is 234,000 dollars more than was on the same day in 1821 chargeable upon the revenue of 1822. It is estimated the value of domestic articles exported from the United States in the year ending on the 30th of September last, has amounted to 49,874,079 dollars, and that foreign articles exported during the same period have amounted to 22,286,202 dollars. 26,735 94 As the receipts from the customs in the year 1823 depend, 1st, upon the amount of duty bonds which become due within that year, after deducting the expenses of collection, and the amount of debentures chargeable upon them; and, 2d, upon such portion of the duties secured in the first and second quarters of that year as are payable within the year; it is manifest that an increase in the amount of debentures chargeable upon the revenue of the year 1823, or a diminution of the importations of foreign merchandise during the two first quarters of that year, must necessarily diminish the receipts into the Treasury. As debentures can be issued at any time within twelve months after importation, chargeable upon bonds given for the duties upon such importation, it is impossible to foresee the amount which may be chargeable upon the bonds that are payable during the year 1823. The facts, however, which have been stated, justify the conclusion, that the amount of debentures which will be be issued and charged upon the revenue of 1823 will considerably exceed the amount which was chargeable upon that of 1822. From the same facts, it is also presumed that the importations of the two first quarters of the year 1823 will be less than the corresponding quarters of the present year. Giving due weight to all the facts connected with the subject, the receipts for the year 1823 may be estimated at Dols. 21,100,000 0 Which being deducted from the above sum, will leave in the Treasury on the 1st day of January, 1824, after satisfying the current demands of the year1823, a sum estimated at Although the facts already disclosed justify the conclusion that the importations of the present year exceed the value of domestic articles exported during the year, yet there are no means of ascertaining the extent of that excess. If the custom-house documents were to be considered conclusive evidence 7,956,538 34 than any of the nations with whom they have maintained commercial intercourse. To show that the custom-house documents cannot be considered conclusive evidence in this case, it is proper to observe-1st, that the value of articles paying duties ad valorem, imported into the United States, is ascertained by adding to the invoice value 20 per cent. if from beyond the Cape of Good Hope, and 10 per cent. from all other places; whilst the value of domestic articles exported is ascertained at the port of shipment without any such addition. 2d. The greatest portion of the importations and exportations are made in vessels of the United States. 3d. The capital employed in the trade of the North West Coast and the Pacific Ocean consists almost exclusively of the labour and enterprise of those engaged in it. Foreign articles, the proceeds of those enterprises, imported into the United States, are, therefore, only equivalent to the labour and enterprise by which they were procured. 4th. The value of domestic articles exported is more imperfectly ascertained than of foreign articles imported, because it has not been considered necessary to resort to the same sanctions to enforce a compliance with the regulations which have been prescribed for that purpose. To ascertain the relative value of imports and exports it is necessary -1st. That the same additions should be made to the invoice value of the latter as are required by law to be made to the former. 2d. The freight of domestic articles exported in American vessels should be added to their value, after de ducting from it the freight of foreign articles imported in foreign vessels. 3d. The value of foreign articles imported in vessels engaged in the trade of the North West Coast and Pacific Ocean, the proceeds of the labour and enterprise of those by whom they are navigated, should be added to the domestic exports. 4th. It is impossible to ascertain what addition should be made to the value of the domestic exports, on account of the omission of the exporters to state correctly the value of articles exported by them; but, after making a liberal allowance for foreign articles illicitly introduced, or inaccurately invoiced, it is believed that a considerable addition should be made. If, then, to the amount of domestic articles exported during the year ending on the 30th of September last, already estimated at 49,874,070 dollars, the additions should be made which the preceding facts and considerations appear to authorise, the value of our domestic exports during that period may be estimated at nearly 60,000,000. Although no calculation has been completed, showing the average rate of duty upon the value of foreign articles imported into the United States, it is presumed that an importation of 60,000,000 dollars of foreign merchandise will not produce a less revenue than 17,000,000 dollars. As the receipts from the customs during the year 1813 have been estimated at 19,000,000, it is probable that the receipts from the same source, in 1824, which will depend upon the importations of 1823, will not exceed 15,000,000 dollars. dollars. Under the most unfavour- be sufficient to discharge all demands upon the Treasury which may be authorized by law. able circumstances, it is believed that the receipts of that year will If the current appropriations for the year 1825 shall be equal to those required by the estimates for the ensuing year, the expenditure of that year may be estimated at Viz.-Current appropriations Permanent appropriations for arming 28,253,597 22 8,578,722 22 The means of the Treasury to meet this extraordinary expenditure, consist, 1st. Of the balance which may be in the Treasury on the 1st of In this estimate the receipts and expenditure of the year 1824 are estimated to be nearly equal. It is probable, however, that the receipts may exceed, to a small extent, the expenditures; but there isat least an equal probability that the receipts for the year 1825 are estimated too high. In the year 1826, the expenditure, assuming the current appropriations to be the same as in the year 1823, may be estimated at 19,457,000 dollars, and the receipts at 19,000,000 dollars. As the appropriation of 500,000 dollars for the gradual increase of the navy expires in that year, the annual expenditure may, for subsequent years, be estimated at 19,000,000 dollars, unless it shall be considered expedient to 27,000,000 0 1,250,000 0 make further provision for the increase of that essential means of national defence. It is probable that the annual revenue will be equal to that sum. To provide for the estimated deficit of the years 1825 and 1826, as well as to meet any extraordinary demands upon the Treasury, which unforeseen exigencies may require, it is believed to be expedient that the revenue should be increased. This may be conveniently effected by a judicious revision of the tariff'; which, while it will not prove onerous to the consumer, will simplify the labours of the officers of the revenue. At present, articles composed of wool, cotton, flax, and hemp, pay different rates of duty. Difficulties frequently occur in de termining termining the duties to which such articles are subject. The provision in the tariff, that the duty upon articles composed of various materials shall be regulated by the material of chief value of which it is composed, is productive of frequent embarrassment and much inconvenience. It is therefore, respect fully submitted, that all articles composed of wool, cotton, flax, hemp, or silk, or of which any of these materials is a component part, be subject to a duty of 25 per cent. ad valorem. The duties upon glass and paper, upon iron and lead, and upon all articles composed of the two latter materials, may also be increased with a view to the augmentation of the revenue. In all these cases, except articles composed of silk, it is probable that the effect of the proposed augmentation of duties will gradually lead to an ample supply of those articles from our domestic manufactories. It is, however, presumed, that the revenue will continue to be augmented by the proposed alterations in the tariff until the public debt shall have been redeemed; after which the public expenditure in time of peace will be diminished to the extent of the sinking fund, which is, at present, 10,000,000 dollars. But if, contrary to present anticipations, the proposed augmentation of duties should, before the public debt be redeemed, produce a diminution of the revenue arising from the importation of those articles, a corresponding, if not a greater, augmentation may be confidently expected upon other articles imported into the United States. This supposition rests upon the twofold conviction, that foreign articles, nearly equal to the value of the domestic exports, will be imported and consumed; and that the substitution of particular classes of domestic articles for those of foreign nations, not only does not necessarily diminish the value of domestic exports, but usually tends to increase the value. The duties upon various other articles, not in any degree connected with our domestic industry, may likewise be increased with a view to the augmentation of the public revenue. If the existing tariff shall, during the present session of Congress, be judiciously revised for the purpose of augmenting the revenue, it is confidently believed that it will not only be amply sufficient to defray all the demands upon the Treasury at present authorized by law, but that there will remain an annual surplus, subject to such disposition, for the promotion of the public welfare, as the wisdom of Congress may direct. Under the act of the 20th of April last, authorizing the exchange of certain portions of the public debt for five per cent. stock, 56,704 dollars, 77c. only have been exchanged. The increased demand for capital for the prosecution of commercial enterprises during the present year, and the rise in the rate of interest consequent upon that demand, which were not anticipated at the time that the measure was proposed, have prevented its execution. Existing circumstances do not authorise the conclusion, that a measure of this nature will be more successful during the next year. If the price of the public debt in 1825 should be as high as it is at present, any portion of it, redeem able |