Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1828-12-16
.1nnuot Report Of the Secretary Of tie Trec&uy,
ON THE STATE or THE FINANCES.

deemed tit one, for presenting, il comcxion with it
brief ret respect OF the principal financial operations
and results OF the three years preceding.
As preliminary it may be proper to remark, that
the receipts Tor the present year likely 10 reach
greater han that ut which they were estimated
when Congress assembled last year: whilst the cXpcn
ditures, always confined within limits prescribed BY
the law, have not gone beyond those limits. The
only exception to this previous limitation upon expen-
pendrurc, applies to the public debt for the reduction
OF which larger sums may be paid than regularly
set apart for the service of the year, provided there
be surplus funds i'll the Treasury tn admit OF it. This
has proved to be the during the present year.
In the summary retrospect winch 1t Is proposed to
give, the state of the public debt will claim the first
attention Such is the interest which the ration i:
known TO take IN Its cNtlngushmcnt, that what done
at the Treasury, from year TO year, under the
injunctions of the laws, towards this end, can
not be too distinctly set forth. Amongst the high
est duties of nation faithfully to keep its pec,,-
mary engagements; und there need be better de-
monstraton of its pecunary ability than when it is
seen To pay oil with pronptude urii purctu,ty its
! funded debt.
There was paid i'll 1925, account of the debt. the
sum of twelve millions ninety nnc thousand and forty
four dollars and seventy light cents. This sum was
not all derived, will be seen hereafter from sur
| plus revenue In 1895. there paid eleven mil
lions thirty thousand four hundred and FORTY
dollars and sixty cents, ul from surplus revenue: in
1927, ten millions thousand five hundred and erh
ty-five dollars and ninety cents from surplus re-
vcnuc and. 1923, there will have been paid by the
millions one hundred and sixty three thousand five
hundred and siXty-sIX dollars and ninety cents akuu
for tho four years forty five millions three hundred
and three thousand hundred and frtv-two dollars
twenty-sX cents. OF this sum, thirty millions three
hundred thousand ono hundred and epll-
ty-clght dollars ar cent, were applied to the
principal and fourteen millions nine hundred and thr-
ty thousand four hundred ard fty-four dollars and
twenty-five cents, to the interest of the debt: the
whole OF the former having gone to the reduction of
that part OF Ii which bears interest of six pcr cent
| The act of Congress of the third of March, 1917.
commonly called the Sinking Fund Act approprates
the annual sum of ten millions of dollars for the pur
pose OF gradually sinking paying off the public debt
| of the nation. This includes all PAYMENTS on NJ
count of interest, which invariably made from
quarter to quarter leaving the remainder to he oppied
rs Tar asst wligo, 10 the reduction of the principal
Up TO the year 1898, the expectations of this act had
not lii one sense, hccn always fully met. Tho anuu.
interest was ever scrupulousy paid as the quarter
came around; but there had not been, during every
year sufficient residue to be applied to the principal
to make up the entire sum Of x 0000 o00 Sometimes
there not sufficient amount of debt rcdecr,p ho
under the laws Ill the course vi year, to allow ofhc
full payment OF ten millions even if the surDus finds
OF the Treasury had been equal to the operation The
inability of the Treasury, where may have existed
to reduce the principal Of the debt every wear nv the
precise amount contemplated in the Sinking Fund act
neither broke fui;h caused complaint with the
puhhc creditor; for whatever the considerations of
pubic policy TINT have made the rapid eXtinot,i Shmcnt
known that the public creditor regards it, intiv;Inv
hardship to be paid off. His reliance upon the
faith and resources of the nation is SO unboundcI that
h. prefers to let hih CAPITAL stock remain in IT. b,n
subject only to his calls for the interest But since
the close of 1925 such has been the state of the rca
sury, from tho increasing solty OF the national r
sources, that not only has the annual reonistion of
the Sinking Fund Act been complied with hut CT III
more has been done. At the beginning of that vear
the whole sum paid under tho act during the seven
years OF It's operatlon IN reduction of the principal
OF the debt, the operation Of the not havnr reo,
iary commenced until 1872 fell short bv sim ey
ceeding three millions of dollars. of the amount TINT
1t would have reached had the full ten millions been
paid III principal and interest during each OF the seven
years III question. Since the close of the year 1905
or, more correctly. since the commencement of 1926
this deficiency has been cOuntervailed by such an
excess of annual payments towards the priucpoI of
the debt, to leave, in tho language of the Treasu
~, no arrears due to the Sinking Fund or mono
OF Importance. in other words, looking back UPON
the whole time that has elnpsed since the SINKING
Fund Act went into operation, it can now be stated
that taking one year with another, there have becn
made, with the exception of small fractional snnn
the full average payments of ten millions of dollars
annually IN principal and interest, account of the
public debt This result has been in great dcrree
produced by the payments which will have been made
during the present year in reduction of the principal
Five millions four hundred and sixiyt dollars and
Twelve cents were paid on the LIST Of july und is
intended to paw fCiir millions fifty thousand seven
hundred md eighty dollars and sevcnfyseyen cents
on the LIST of january making, for the whole year in
Guiding Flna bnancc of Treasury notes O be pnid
OIL, ana minute traction OF the old registered debt
nine millions siXty-OnC thousand four hundred and
nlnety-sx dollars nineteen cents. The committee on
Finance of the Senate, in their valuable Report to
that body in April last the state of the public debt
referring to the foregoing payment which it was then
III contemplation to make OH the list Of July expressed
their hope that considerable reduction of the arrears
due to the Sinking Fund, would probably be effected
In the course OF this year The hope is amply realiz
ed The large amount OF the payment to be made on
the first January was justified, in the opinion of the
Commissioners OF the Sinking Fund by the receipts |
into tho Treasury since tho payment in July was re- |
solved upon which greater than had been anti
cpated and by those that reasonably anticipa
ed for the fourth quarter of the year.
the total sum that VIII have been paid account
Of the debt from the first of January 1917 the wear in
which The sinking fund act passed to the first Of ia
puary next, will be hundred and forty-six millions
SIX hundred ana si%ty,nine thousand seven hundred
and seventy three dollars forty eight cents Of tbs
sum eighty eight millions eight hundYed and tbirtv