7,084,023 62 10,393,943 39 According to the foregoing calculation, the 6 per cents. will be redeemed, as follows: Of the 6 per cents. of 1813, (16 million loan,) on the 1st July, 1826 $4,238,198 08 2,790,600 00 2,832,500 00 1,373,900 00 -$11,235,198 08 1st October, 1829, 1st January, 1830, From these statements it results: That, by adopting either of the modes suggested, all the six per cents. may be reimbursed before, and in the year 1829; And that, by adopting the mode pursued in number one, or in number two, they may be reimbursed earlier than by embracing the proposition of a new loan or exchange; which, therefore, could be recommended only by an increased saving to the Government. But, from these statements, it also results: That, by adopting the scheme of a loan, or exchange, the course illustrated in the statement No. 2, the gain 5,035,599 16 over the course pursued in No. 1, will be $ 342,576 12 That, by adopting the mode of partial payments, or the quarterly application of the Sinking Fund and surplus means to the debt, the course illustrated in No. 3, the gain will be as follows: $ 824,540 82 481,934 69 Over the course pursued in No. 1, And over that pursued in No. 2, It will be perceived that these results are reached by deducting the balances of unexpended appropriations from the means of the Treasury, and also leaving in the Treasury, at the end of each year, the sum of $2,000,000, 13,096,542 90 required by the act of the 3d March, 1817. 9,490,099 10 And the interest, which will be paid quarterly, on the Public Debt during the same period, and to the 1st of January, 1830, will be as follows: On the 1st July, 1826, 1st October, 1826, 1st January, 1827, 1st April, 1827, $ 2,045,863 64 959,358 85 917,499 85 1st July, 1827, The illustrations in statement No. 2, proceed also upon the supposition, that a loan, or exchange, may be effected at a rate of interest not exceeding five per centum, of which, as has been already remarked, there is little probability. The particular object of the foregoing statements and calculations being, to show the operation of various modes of paying off the six per cents. becoming reimburseable in 1826, 1827, and 1828, in those years and 1829, no notice has been taken of other portions of the public debt which may be redeemed during the period embraced by those calculations. It will be perceived, however, that there are balances which may be so applied, and that there are portions of the debt redeemable at that period, viz; The five per cents. subscribed to the Bank of the United States, may be paid off in any portions that may be convenient to the Treasury, amounting to $7,000,000 00 And the exchanged 44 per cents. of 1825: Redeemable on 1st January, 1829, 792,569 44 792,569 44 Making together, $8,585,138 88 If the scheme of partial, or quarter payments, the course pursued in statement No. 3, be adopted, $ 5,524,000 of this amount may be redeemed on the 1st of October, 1829, and the residue on the 1st of January, 1830. If the plan of a loan, or exchange, the course pursued in statement No. 2, be adopted, the first sum, viz; the $7,000,000, and the second sum, viz: $792,569 44, may be paid off on the 1st of July, 1829, leaving the last sum, viz: $792,569 44, to be paid off on the first of April, 1839. If the course pursued in statement No. 1, be adopted, | $4,792,569 44 may be paid off on the 1st of October, 1829, and $3,000,000 on the 1st of January, 1830, leaving also $792,569 44, to be paid off on the 1st of April, 1830. Hence, it will be seen, that, by applying the surplus means to the redemption of these stocks, the gain to be derived from pursuing each course will be varied, and, instead of the results presented above, the total gain will be: Number 3 will gain over number 1 and over number 2 [H. of R. 1,162,425 55 424,849 94 All which is particularly explained and exemplified in the statement herewith submitted, annexed to this repor and marked B. It will then be apparent that, by adopting the mode of partial payments of the six per cent. stocks, and applying the surplus quarterly, the debt will be more speedily reimbursed, and with an increased saving; will be more equally and beneficially distributed in different years, at cording to the convenience of the Government; the etpenditure on account of interest will be lessened, and all possible accumulation of money in the Treasury effectu ally guarded against. Of number 2 over number 1 $ 438,997 53 If such an operation for the redemption of the publc Of number 3 over number 1 896,095 82 debt be not expressly indicated by the words of the ac And of number 3 over number 2 567,098 29 of the 3d of March, 1817, it is, in the opinion of the com But these calculations are founded upon the amount of mittee, clearly pointed out by the scope and policy of the the annual receipts and expenditures, as estimated in the law. It did not propose to wait to the end of a single report of the Secretary of the Treasury, and on the sup-year, or more years than one, for the whole of a ka position that the annual appropriation, of a 500,000, for to fall due, when it authorized and directed the applica the gradual increase of the navy will be continued during tion of the surplus et any time, after an adjournment of the years 1827, 1828, 1829. If these receipts should be Congress, to the "purchase and redemption of the public more or less, or if the sum for the gradual increase of the debt." And the committee perceive no mode so wel navy be withheld after the term at present limited by law, calculated to give activity to the spirit and provisions of which the committee do not contemplate, or if Congress that act, as that of quarterly payments. should think proper to authorize extraordinary appropriations towards internal improvements, or other objects, the results, before presented, will be proportionably varied. It will, therefore, depend upon the wisdom of Congress to realize or disappoint these results, according to their views of the expediency of redeeming the whole debt presented in this report on the 1st of January, 1850; of promoting objects of internal improvement, and providing for the exigencies of the nation. Further appropriations during the Session of Congress must be necessarily anticipated, and if kept within a reasonable limit, will not materially vary the foregoing results. The operation, it is believed, will not be less beneficial to the stockholders, than to the Government; for, the more gradually the public debt be reduced, the less will be the influence upon the money market, and the facilities of a more favorable re-investment of the money. The payment of $16,000,000 of debt, on a single day, could not fail, by making money more plenty, to depress the rate of interest, and consequently increase the difficulties of a profitable re-investment; while gradual payments of three, or even more millions in each quarter, would not be materially felt. Under circumstances, therefore, in which the Government is under no obligation to pay the public debt, at any It is believed that the receipts from the impost, and precise time, but is at liberty, and, perhaps, bound in sale of public lands, will exceed the estimate of the Se-duty to discharge it, with the greatest advantage to the cretary of the Treasury, from one million to one million and an half, annually, and that an excess of appropriation to that amount, in each year, would not disappoint the anticipation in this report. Should this be erroneous, and it be deemed expedient to redeem the whole amount of debt in this report, including the subscription to the Bank of the United States on the 1st of January, 1830, and to postpone the application of the national means to objects of internal improvement until that period, Congress may safely add to the standing expenditure one minion of dollars in each Session, and still accomplish that object. Supposing then the receipts to be the same as estimated by the Secretary of the Treasury, and that there be added to the annual expenditure the sum of $1,000,000, and that $1,000,000 less be applied annually to the debt, all the six per cent. stocks, aiñounting to $38,857,439 34, may be redeemed previous to, and on the 1st day of October, 1829, leaving a balance on the 1st of January, 1850, of $5,992,275 02, to be applied to the stock subscribed to the Bank of the United States. If Congress should think proper to exceed the estimated expenditure two millions of dollars annually, instead of one, which the Committee suppose would be the largest justifiable excess, still the six per cent. stock may all be paid before and on the 1st day of October, 1829, though no part of the other debt can be paid on the 1st of January, 1830. If the excess be annually $1,000,000, and the surplus means to be applied, quarterly, to the discharge of the debt, the ultimate gain would stand thus : Number 2 will gain over number i - $737,575 59 state of the finances, without producing unnecessary inconvenience to the creditor; and giving due weight to the considerations already presented, the Committee do not feel themselves authorized to recommend a loan or exchange. They recommend, on the contrary, that the finances of the nation should be judiciously cherished; the public expenditures regulated by a wise and liberal economy; and the surplus means gradually applied in each ensuing quarter of the year to the redemption of such portions of the debt, to which they may be adequate. The Committee deem it unnecessary to recommend any particular mole of carrying this scheme into operation, preferring to leave it to be regulated by the conve nience and capacity of the Treasury. It might be accoinpashed, in relation to all the six per cents. except the $16,000,000 of 1813, by partial payments, from ume to time, of each certificate, and upon the principle of distribution among the several loan of fices; but as the terms of that loan require all the stock owned by any one individual at a given period to be paid, it would, perhaps, be best, for the sake of uniformity, to adopt some mode applicable alike to all the debt. this way, the owners whose stock could be paid at the end of any one ensuing quarter, might be designated by lottery, to be drawn at the Treasury, on the last day of a preceding quarter, and notice given accordingly for three months of such intended payment on the day therein to be named. In The conclusion which the Committee have reached in this report, makes it unnecessary for them to consider in detail the expediency of the further recommendation, in the report of the Secretary of the Treasury, to place the stockholders who exchanged, under the law of the last session, upon an equality with the terms of a new loan. These stockholders have voluntarily made their contract with the Government, for the equivalent prescribed by the law, in postponing the redemption of that stock; this equivalent is rather increased by the scheme of redemption of the six per cents. now proposed by the Committee, and no reason is perceived for recommending an alteration in their condition. No other could be made, it is presumed, than to re-instate the stock to one bearing an interest of six per cent. which might subject it to an earlier reimbursement; and, as it is fairly to be inferred that the exchange was not made without satisfactory evidence with the individual creditor, that it was his interest to make it, and without reference to the views or circumstances of others, or the extent to which it might prevail, it is believed there would no propriety in annulfing the arrangement. All which is respectfully submitted. A. J 19th CONGRESS, 1st SESSION. After the drawings were completed, the numbers to be reimbursed at cach period were advertised for six months previously to their being paid off. It is to be observed, however, that, in addition to the progressive numbers which were given to the certificates at each loan office, beginning with number one, there was a set of permanent numbers assigned to each office; that each certificate had one of these numbers; that the Agents and Commissioners of Loans were directed to make a return of the permanent numbers issued by them, respectively, to the Treasury; and that the amount of each permanent number so returned was never changed, (the subdivisions by assignments having the same permanent number,) so that when the Treasury decided upon re-imbursing a part of the said stock, and having in its possession the permanent number and amount of each certificate originally issued, just so many were drawn as it was deemed expedient at one time to pay off. The Louisiana stock was re-imbursed by instalments, agreeably to the terms of the convention and law, one half in 1818, one fourth in 1819, and the residue in 1820, without calling in the certificates till the last payment; but upon the Memorandum of Stocks of the United States which have presentation of a certificate for assignment after the first or been re-imbursed by partial payments, viz: Exchanged and converted 6 per cent. stocks created per act of the 11th of February, 1807 : amount Of these stocks there was re-imbursed in 1809, by drawing lots for sundry numbers of certificates, until they amount ed to 7,853,114 20 2,242,218 24 3,751,125 26 1,294,452 29 565,318 41 $7,853,114 20 second instalments were paid, a new certificate was made out in the name of the assignee for the residue; to those acquainted with the transactions relative to the payments on the certificates of the Louisiana debt, it would be apparent, that those which were dated prior to the day which had been fixed for the payment of the instalments, and which remained outstanding subsequently to those payments, would be less in value by one half or three fourths of the sum expressed in the said certificates. NOTE. By the act of 11th February, 1807, at least six months public notice of the intended re-imbursement was expressly required; but the several acts of Congress authorizing the present six per cents. require only “reaBonable notice." B. Supposing the sum which may be applied, annually, to the public debt, to be one million of dollars less, in each year, than the sum assumed in the former statements, and the result will be as follows: 1st. According to the mode exhibited in Statement No. 1, the six per cents. will be re-imbursed thus: On the 1st October, 1826, 6 per cents. of 1813, (7 million loan,) 1st October, 1827, 6 per cents. of 1813, (16 million loan,) 1st January, 1830, 6 per cents. of 1815, $ 5,035,599 16 11,235,198 08 13,096,542 90 9,490 099 10 The interest paid on the debt will be: On the 1st April, 1826, On the 1st April, 1828 1st July, 1st October, 1st January, 1829, 1st April, 1st July, 1st October, 1st January, 1830, 1st October, 1st January, 1830 $778,869 87 778,869 87 778,869 87 778,869 87 582,421 72 582,421 72 582,421 72 582,421 72 Total 13,082,423 05 2d. According to the mode exhibited in statement No. 2, the six per cents. will be re-imbursed thus: On the 1st July, 1826, 6 per cents. of 1813, (16 million loan,) 1st January, 1827, 6 per cents. of 1813, (7 million loan,) 1st July, 1828, 6 per cents. of 1815, 7,597,137 98 10,318,268 11 13,039,398 24 2,663,985 47 5,581,563 75 8,499,142 03 11,416,720 31 4,844,199 49 11,235,198 08 5,035,599 16 13,096,542 90 9,490,099 10 And, as being most advantageous, the loans proposed by the Secretary, redeemable in 1829 and 1830, The interest paid on the debt will be: On the 1st April, 1826, 1st July, 1st October, 1st January, 1827, Ist April, $1,022,931 82 [H. of R. 1st October, 6,036,096 21 1st January, 1828, 8,569,192 36 6,142,223 34 8,750,853 48 11,359,483 62 6,993,019 00 1st October, 1st October, Sd. According to the mode exhibited in statement No. 3, the six per cents. will be re-imbursed thus: 1st October, do 2999 99 do do |