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when the internal revenues were abolished, and the foundation laid for the extinguishment of the, public debt, Mr. Griswold, the ablest leader and most accurate man of his party, affirmed that it was unwise and dangerous to trust to receiving for several years more than 8,350,000 dollars from duties, and 721,000 from other sources, making together $9,071,000, which, he declared, after every practicable retrenchment, would leave an annual defalcation of 929,000 dollars. Instead of this result the duties have yielded

In 1901
In 1802

In 1803

DOLLARS.

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exceeding the estimate of Mr. Griswold in the average annual sum of 1,925,000 dollars. However surprising this error may be to those who have paid but little attention to the principles of political economy, it is easily accounted for. We are not to look to the counting house or the forum, for those enlarged views that can only be taken by minds well acquainted with history, and the principles that regulate the intercourses of nations. To fathom the future requires a knowledge of the past, united with a capacity of extracting from the heterogeneous mass that which is applicable to existing circumstances.

But no circumstance so completely demonstrates the full competency of the public resources during the whole period of the administration as the operations for the redemption of the public debt. In the month of April, 1801, Congress passed an act appropriating the annual sum of 7,300,000 dollars to the payment of the principal and interest of the debt, a larger sum than had in any antecedent year been applied. Instead, however, of barely complying with the requisitions of

this act, there has been applied annually a much larger sum.

Besides the regular payment of the interest there has been discharged of the principal, from the 1st of April, 1801, to the 3d of September, 1803, as appears by the report of the Secretary of the Treasury of the 24th of October, 1803, the sum of

And in corresponence with an estimate made in the same report there will have been discharged by this time the additional amount of

Making together

discharged in three years and an half.

DOLLARS.

9,920,000,

3,500,000

$ 13,420,000

We shall finish these remarks with mentioning a single fact. During the whole administration of Mr. Adams, there was not a dollar of the public debt really redeemed; for the new debt created by loans considerably exceeded the amount paid of the old.

In this view of the financial operations of the government, it may be proper concisely to notice a topic, brought up from time to time to suit party purposes. About the close of the year one thousand eight hundred and two, the commissioners of the sinking fund made a contract with Mr. Baring, whereby they sold him 2,220 shares of bank stock, for an advance of 45 per cent. making 1,287,600 dollars, on the condition that he should pay an equivalent sum of the foreign debt due by the United States at the exchange of 41 cents the guilder. At the close of the ensuing session, within two days of its termination, Mr. Bayard brought forward a motion of enquiry, on the ground that the commissioners had no legal authority to sell the bank shares, and that if they

had the power, they had sacrificed the interest of the United States by the low price at which they had been sold. We shall pass over the disingenuous manner in which this enquiry was urged, with the single remark, that no other motive but the desire to wound the administration in the tenderest point, without giving them an opportunity to justify their conduct, could have produced the motion at the time it was submitted. Fortunately, however, the friends of the administration manifested, on this occasion, a vigilance and knowledge that confounded their enemies.

In this discussion it was contended that the commissioners had no legal authority to sell the bank shares. In answer to this declaration, reference was had to the act of Congress of one thousand seven hundred ninety-six, in relation to the payment of the public debt. That act autho rises the commissioners of the sinking fund to borrow five millions, for the purpose of paying such debts to the bank of the United States, to the bank of New-York, and such instalments of the foreign debt, as were then due or should become due in the course of the year one thousand seven hundred and ninety-six. The law provided that this authority might be exercised in three different ways; the two first authorised loaning the money from individuals, and the third authorised the commissioners, if they deemed it most advantageous, to sell such, and so many of the shares in the bank of the United States, as they might think proper, for the above purpose. Of the sum due to the bank of the United States in the year one thousand seven hundred and ninety-six, it was shewn that 2,740,000 dollars remained due on the first of January, one thousand eight hundred and two. For the purpose of in part paying this debt, the commissioners sold the bank shares. The

power given in one thousand seven hundred and ninety-six to sell the bank shares being unlimited in point of time, and the objects to which only it was limited remaining in existence, it appeared as clear as day light that the authority was legal. Such, moreover, appeared to have been the con templation of the legislature in the antecedent year (1802) who had passed a law providing for the discharge of the public debt, in which it is provided that the power given to reloan certain instalments of the Dutch debt "shall not be construed to repeal, diminish, or affect the power given to the commissioners by an act making pro vision for the payment of certain debts of the United States (the very act in question passed in 1796) to borrow certain sums of money, and to sell the shares in the bank of the United States, belonging to the United States, in the manner, on the terms, and for the purposes provided by the said act."

To prove that the interest of the United States was not sacrificed by the sale, but that on the contrary, it was eminently promoted by it, we shall extract from Mr. Nicholson's speech the following statements, which, it is conceived, will be satisfactory to every unprejudiced mind.

"The 2,220 shares sold at 45 per cent. advance, or for 580 dollars each, and produced the sum of 1,287,600 dollars. By selling to Baring, the commissioners of the sinking fund were enabled to make an advantageous contract with him for the payment of the debt in Holland. The bank of the United States had refused to contract to make the remittance; the Manhattan bank in New-York offered to contract, but the lowest rate offered was at 43 cents the guilder. Mr. Baring offered to contract at 41 cents the guilder, provided the commissioners would sell him their shares in the bank H

of the United States. This proposition they acceded to, and sold the 2,220 shares for dollars 1,287,600

Gained on the purchase of bills of exchange for 3,140,487 guilders at 41 cents each, instead of 43 cents; the difference 2 cents per guilder, equal to 62,809

This sum makes the real proceeds of the bank shares, and shews the true amount received by the United States for them

But the gentleman from Delaware says the sale might have been made at 50 per cent. advance, and we might likewise have received a half yearly dividend; and this he thinks would have been a better bargain. Let this be tried.

Suppose the 2,220 shares sold at 50 per cent. advance or for 600 dollars each

Add the half yearly dividend at 4 per cent. which it is said we might have received likewise, besides getting the 50 per cent. advance, the dividend of 4 per cent, or 16 dollars per shares equal to

This would have given us for our shares the sum of

In this case, however, we should have been obliged to pay at the rate of 43 cents the guilder, instead of 41 cents and the difference of 2 cents per guilder on 3,140,487 guilders

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62,809

1,350,409

1,350,400

1,332,000

35,520

1,367,520

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