Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1828-12-12
ANNUAL REPORT
Ortae Secretary of!he Treasury,
ON THE STATE OF THE FINANCES.

In LAYING before Congress The Annual Report
from the Treasury for the present year, the oc>
casion is deemed fit one, for presenting, in
connsxion with il, brief retrospect OF the Prin-
cipal financial operations results OF the three
years preceding.
AS preliminary, il may be proper To remark
lha, the receipts for the present year are likely
10 reach a sum greater than that al which they
we're estimated when Congress Assembled last
wear; whilst the expenditures, always confined
wi,hinIimits prescribed by the law, have not
gons:bevond those limits. The only exec ption
10 this previous limitation upon expenditure,
applies 10 the public debt, for the reduction OF
which, larger sums may be paid than are regu
larry set apart for the service Of the year, pro-
vided there be surplus funds in the Treasury TO
admit Of it. This has proved TO be the case
during the presrn year.
In the summary retrospec: which it propos-
ed to give, the state Of he public de bit will claim
th. FIRST attention. Such is he interest which
the nation is known to take in its ext:nguiSh>
mrnt, that what IS done at the Treasury, from
wear TO year, uader the inJunctions OF the laws
towards this end, cannot be 100 distinctly set
forth Amongst the highest Juiies Of nation
is faithfully to keep to its pvcuniary engage
men S. and there need be no better demon
stration of its pecuniary ability, chan when it
is seen 10 pay off with promptitude and pune
tuality its funded debt.
There was paid In 1925, on account OF the
debt, the sum Of twelve millions ninety n'ne
thousand and forty tour collars and seventy
eight cents. This sum was not all derived, as
viii be seen hereafter, from surplus revenue,
Iuls26, thcre was paid eleven millions thirty
nine thousand four hundred and forty four doll
lars and sixty cents, all from surplus revenue;
in 1927, ten millions one Thousand ne hundred
and eighty Ave dollars and ninety eight cents.
from surplus revenue, and, In 1928, there Will
have been paid by the close OF the year, also
from surplue revenue, twelve millions one nuns
dred and sky three thousand five hundred and
sixty six dollars and ninety cents, making Tor
the four years, forty five millions three hundred
and three thousand six hundred and forty-two
dollars twenty six cents. OF this sum, thirty
millions three hundred seventy three thousand
one hundred and eigh Weigh dollars and one
cent, were applied % the prin" ipal, and fourteen
millions nine hundred and thirty thousand tour
hundred and 6fy four dollars and twenty FIVE
cents, to the interes, Of The debt: the whole oil
the for mer having gone towards the reduction
Of that part of il which bears an interest Of SIX
per cent.
The act OF Congress Of the third Of March
1917, com monly called he Sinking Fuhd Act
lnDrODtlateS Tue dnDudi Suti VI WI "
dollars for the purpose Of gradually sinking Of
having If the public debt Of the nation. This
sum in ludes all payments on account of inter
es, which are invariably made Il ON quarter t.
quarter, leaving the remainder TO be applied a.
far as il will 60, TO the reduction Of the princi
pa. Up 10 the wear 1925, the expectations O
this act, had not, in one sense, been always ful
ly met. The annual interest was ever scrupu
lousy paid AS the quarter came around, bu
there had not been, during every year, suffi
Gent residue to be applied TO the principal, Il
make I'D the entire sum Of ten millions of dol
lars. Sometimes, too, there W as not suffiCien
amount Of debt redeemabie under the laws, n tn
course OF year, to allow Of the iuI p yment q
ten millions, even if the surplus funds Of tn
Treasury had been; equal % the operation
The inability of the Treasury, where II ma
have existed, TO reduce the principal Of tn
debt every year, by the precise amount conlem
plated in the Sinking Fund Act, neither brok
faith nor caused complaint with the publ
creditor; Tor whatever the considerations Q
public policy that have made the rapid extIn
punishment Of the debt favorile object with tn
nation, il is known that the public creditor re
CARDS il, indiv ldually, as hardship 10 be par
of. His reliance upon the faith and resource
Of the nation is so unbounded, that he prefer
10 let his capita. stock remain in Its hands, sub
ject only To his calls for the interest But siDI
the close Of 1925, such has been the state of III
Treasury, from the increasing solidity Of tn
oauonal resources, that, not only has The annu
al requlsition of the Sinking Fuad Act bee
complied with, out still more has been DONE
Al The beginning Of tina, year, the whole sun
paid under the act during the seven years OF it
operation, in reduction Of the principal of tn
debt, the operation of the act not ing regu
l.rlv c,mmencsd until 1917 fell short bv
sum exceeding ,hrse millions Of dollars, of III
amount that i, would have reached had 'he fu
ten millions been paid in principal and interes,
during each of the seven years an question:
Since the close of the year 1925, or, more cor
rec;ly, since the commencement OF 1926, 'hi
deficiency has been cuunter.a allied by such al
excess OF aunuai payments towards the primer
pai of the debt, as to leave in the language o
the Treasury, no arrears now due to the sink
ing Fund, or none of Importance. In oshe