Star.
London, England, 1816-01-16 00:00:00

•

AMERICAN CONGRESS.

ANNUAL TREASURY REPORT CONTINUED.
THE WINKING FUND.
The public debt amounted, on the Ist of January,
1791; to the stun of 75,463,476 dollars 52 cents. and
it cons;sted of
The Fore go Debt
The Domestic Debt

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12,812,821 92
62,650,654 60

75,469,476 51
The foreign debt experienced various changes, in
forM anti in amount. From 1792 to 1795 it rose above
the amount stated for 1791; but from that period it
was gradually reduced ; and on the Ist of January,
1891, it stood at the sum of 10,419,000 dollars.—
Front the year 1601, however, the annual reduction
was More rapid ; and in the year 1810, the foreign
debt became extinct.
The domestic debt has also experienced various
changes in form and amount.
It was originally stipulated that it should be sub-
ject to redemption, by payments not exceeding in one
year, on account both of principal and interest, the
proportion of eight dollars upon 100 dollars of the
stock ; and when the Sinking Fund was constituted
and organized, provision was made for effecting the
payments in that proportion, until the whole debt
should be extinguished by dividends payable on the,
last days of March, June, and September, in each'
year, at the rate of l 4 per cent. and on the last of De-
cember in each year, at the rate of 3 per cent. upon
the original capital.
During the first period of about ten years, from
1791 until the Ist of January, 1801, the amount of
the domestic debt never fell below the sum which has
n stated ; and in 1801 it stood at about the sum of
74619,050 80 cents. The augmentation created on
account of the purchase of Louisiana (amounting to
15,000,000 dollars) railed the capital of the domes.
tic debt in 18(14 to the sum of 80,691,120 dollars $8
cents ; but from that period there was a considerable
annual diminution ct the amount, until it was re-
duced, tin she 30th September, 1815, to the already
specified sum or 39,135,484 dollars 96 cents.
The Sinking Fund, by whose operations these be-
neficial. effects have been produced, may be regarded
as coeval with the orgainzation of the present Go.
t; but it has undergone many important
moisfic a tions.
1. The early appropriations of the revenue were
confined to the payment of the interest and instal-
ments of the foreign debt, and to the payment of the
int-rest of the domestic debt; but so early as the 4th
of Auggist, 179 n, the proceeds of the sales of the pub-
lic lands in the Wi.tein Territory were permanently
and exclusively i.ppmpriated and pledged towards
sinking and the debts for which the Uni.
ted States were holJen. The annexed Table 1).
u ill exliant a statement of the quantity of the public
Linda which have ueea annually sold, and of the pro.
ceeds of the sales, as far as can now be ascertained.

2. In the year 1792, however, Commissioners were
designated and authorized to purchase the-public debt
At its market price, not exceeding the par value; and
the interest ut the debt purchased, together with the
roplus of certain other alepropriations, was assigned
La- that purpose. When the annual amount of the

Irma dais created si:ouid be equal to two per cent.
on the six per cent. stock, it was directed to be first
applied to the redemption of that stock, according to
toe right reservtd, and then to the purchase, at its,
kt.t price, art any other public stock.
3. In the year 1795, 1.11.: Sinking Fund was esta-
blished by name. its resources were vested in the
same Commissioners, and its opei aliens were subjec.
ted to their direction and management. The duty
of the Commissioners, independent of temporary ob-
jects, consisted in apl;l;ing the Sinking Fund, Ist, to
the payment of the sax per cent. stock, at the stipula-
ted rate of eight per cent. per annum ; 2d, to the
payment of the deferred stock after the year 1801,
according to the saute stipulation; and, 3d, if any
surplus remained towards the further and final re-
demption of the public debt of every denomination.
For the accomplishment of these purposes, there were
permanently appriipriated and pledged, in addition
to tie other mi nies constituting the Sinking Fund,
and the interest of the amount of the purchased or
redeemed debt : Ist, a sufficient sum arising yearly,
and every year, from the duties on imports and ton-
stage, and the duty on domestic distilled spirits and
stills, as might be rightfully paid of the principal of
the six per cent. stock, commencing on the Ist ofJa-
46uary, 1793, and of the deterred stock commencing
on the Ist January, 1802: 2d, the-dividends on the
public shares is the Bank of the United States; but
the shares were sold in 1796 and 1802, under an an-
tbori y given in 179.5: 3d, the net proceeds of the
oaks of public lands in the Western Territory : 4th,
monies received into the Treasury on account of
cld debts : sth, the surpluses of revenue beyond the
amount of the appropriations.
4. Such was the outline of the Sinking Fund, when
on the 6.h-of April, 1802, the internal duties were
repealed, and on the 29th April, 1802, a new and
tdditional provision was made for the redemption of
the public debt. Thus an annual sum of 7,300,000
dollars was permanently appropriated and vested in
the Commissioners of the Sinking Fund, to be pro-
duced; Ist, by the monies (other than the surpluses of
revenue) which then constituted the fund, or should
arise to it by virtue of any previous provisions 2d,
by the sums annually required to discharge the in-
terest and charges of the public debt : and, Sdly, by
. so much of the duties on merchandize and tonnage as
would be necessary, together with the preceding rei
sources,. to complete the anival investment of
7,300,000 dollars.
The Act not only placed the reimbursement of the
principal, but also, the payment on account of in-
terest and charges of the public debt, Under the su-
perintendence of the Commissioners ; making it theie
duty to cause the fund to be applied in payment, Ist,
of such sums as by virtue of any Acts they had pre-
viously been directed to pay; 2d, of such sums as
• may be annually wanted to discharge the interest
and charges accruing on any other part of the then
debt of the United Staten; 3d, of such sums as may.
be annually required to discharge any instAment of
the principal of the then debt; and 4th, as to any
' surplus, to apply it towards the further and final re-
demption, by payment or purchase of the then debt.
.The Act of the 10th November, 1803, having created
aii per cent. Stock to amount of 11,250,000 dollars
in pursuance of the convention for ;be purchase of