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! SEN. AND H. OF REPS.]

Documents accompanying the President's Message.

to whom delivered for use; receiving, examining, and filing all returns, showing the various issues, the quantities left on hand, surveys, &c; to file all offers for supplies, and scale them for decision; keep all the papers connected with such supplies; the state of each and every station, as to supplies; all the shipments made, &c. &c.; and to do all such other business as may be required of him.

A copying clerk, to keep the letter books, and do such other copying as may be required of him.

Other officers would also be required to act, under the immediate direction of the Chief of this branch: for instance, officers to inspect provisions and slop clothing; to hold surveys upon them; to attend particularly to all shipments, and guard against all impositions in the quality and condition of articles delivered under contracts, &c.

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[21ST CONG. 1ST SESS.

these are duties which every public agent should be desirous of rendering.

Disbursing agents, out of the United States, should be required to take quadruple vouchers for their expendi tures, so as to enable them to send two in each case, by as many different vessels, and retain two in case of accidents. They should then be required to forward one set of their accounts by the first opportunity, and another set by the next earliest; we should thus, much earlier than at present, possess a knowledge of the foreign accounts of the Department.

With regard to the principle upon which Navy appropriations are made by Congress, and the forms and rules observed in their, administration, by the Department, it is hoped that a reference to the communication which the Commissioners had the honor of submitting on the 31st March last, will repay for the trouble of making it. There are numerous facts exhibited in that communication, which will assist us in forming satisfactory conclusions. But it may be sufficient, on this occasion, to select from among them, the following, viz:

It will be seen that this arrangement proposes, that money requisitions shall pass the special examination of the branch under which they are to be expended: the reason is obvious: that branch will possess precise knowledge upon the subject, and will be enabled to decide promptly and correctly whether the requisition should be approved or not; for instance, should money be required under the The returns of one of the disbursing agents, head of "Repairs," the requisition would be sent to the exhibited Balances on hand, officer having charge of the building, repairing, and Overpayments; that is, expenditures exequipping department," who would cause it to be exam-ceeding the sums remitted, under certain ined minutely, and, if found correct, he would approve it, specific heads of appropriation, and submit it in that state to the Secretary of the Navy, who would cause a warrant for the amount to be issued, and placed in the hands of the disbursing agent, to be ap plied by him in conformity with his instructions; thus, in its incipiency, using every precaution to ensure its faithful application and expenditure.

But, with these precautions, which would, unquestionably, greatly improve the existing practice, we should still be uncertain as to the application of money, according to instructions: none but the officer giving the instructions can decide, to a certainty, whether the moneys are expended according to those instructions; and this he ascertains by comparing the one with the other on his records. It is, moreover, to be presumed, that his professional knowledge, which enables him to judge correctly as to the kind, quality, quantity, and prices of the articles required in the department of the service specially committed to him, would be of particular value in the examination of all accounts originating in oxpenditures directed by himself. This admitted, it results, that every account of expenditure should be examined and approved by the officer having the superintendency of the branch which approved the money requisitions, and from which the instructions for its expenditure were issued. Accounts, thns examined and certified, might be sent to the Fourth Audifor of the Treasury, and there undergo such further examination, as to their calculations, as would ensure their correctness. Such an arrangement would impose auditorial duties upon each branch of the Department, and, in that case, additional clerks would be required, viz.: two for the first mentioned branch, and one for each of the others.

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Actual balance of money in his hands, -
The returns of another disbursing agent,
showed Balances on hand,
Overpayments, -

Actual balance of moneys in his hands,

$69,761 58

69,230 13

$531 45

$103,248 33 92,259 41

$10,988 92

One of the agents, having upwards of thirty thousand dollars in his hands, belonging to, and remitted to him out of the appropriation for "Gradual Increase," applied the amount to the payment of accounts arising under five other distinct heads of appropriation, viz: Sloops of War, Navy Yards, Five Schooners, Contingent prior to 1824, and Contingent for 1826.

The principle which confines the application of Navy appropriations to the particular objects for which they are made. or which, in other phrase, declares that "the sums apppropriated by law for each brauch of expenditure, shall be solely applied to the objects for which they are respectively appropriated, and no other,” has thus, in numerous instances, been violated in practice. The inquiries of the Commissioners lead them to believe that this has been done sometimes intentionally, as the least of two evils; at other times, unintentionally, arising from misapprehension on the part of disbursing agents and others, as to the proper head of appropriation to which disbursements should be charged.

The cases particularly cited are, principally, it is believed, of the former class. The agents were instructed, it is understood, to apply moneys in their hands, under certain heads, to the payment of accounts arising and due under other heads. Such accounts were, it is said, of such a nature, that payment of them could not be postponed without violating the public faith, to preserve which, it became necessary to violate the law.

Of the latter class cases are cited in our communication of the 31st March last, to which we beg leave to refer you.

Under such an arrangement, disbursing agents, residing in the United States, might be required to forward their accounts weekly; that is, to send, at the termination of every week, their vouchers for disbursements during that week. Upon being received, they would be immediately examined, and, if found correct, the amount would be passed to their credit, and they would be so informed; if incorrect, the error would be corrected, while all the circumstances are fresh in the memory of all parties. This The Commissioners not having been charged with the course would be attended with advantages both to the duty of adjusting and settling Navy accounts, can give no Government and to the individuals coucerned, to whom precise information respecting them; but the deep interthe prompt settlement of accounts should always be de-est they take upon all subjects affecting the service in sirable; and it is not perceived that it would occasion which they have the honor of holding commissions, bas much, if any, additional trouble to either party. It would induced them, from time to time, to make inquiries, from require the constant and vigilant attention of both; and which they are fully satisfied, that the intention of the

21st Cong. 1st SESS.]

Documents accompanying the President's Message.

[SEN. AND H. OF REPS.

law of 1809, in its provisions as to the application of the If a single dollar be taken, intentionally or otherwise, specific appropriations, has never been carried into full effect, in any one year since its enactment. The theory of specific appropriations would seem to embrace exact and precise accountability; and this consideration, no doubt, had some weight in producing its adoption. But the test which has been applied, in the expenditure of millions of dollars, during the last twenty years, has certainly not confirmed the anticipations of its advocates.

from one appropriation, and applied to another, it is a violation of law. Suppose a ship is about to be equipped for important service, and there should be large balances under all the appropriations excepting that for Ordnance, which is exhausted; under the law, however urgent the necessity, not a cent could be drawn from either of the redundant appropriations for the purchase of arms. It was surely never the intention of Congress, that a vessel of war should be sent to sea without being, in all respects, thoroughly prepared to defend the honor of her flag; yet, in the case supposed, she could not be properly prepar ed, without violating the law of appropriations. Similar embarrassments would arise from a defiency in either of the appropriations from or to which transfers are forbidden Thus, the law, in gaining an object of diminutive value, when contrasted with its main design, (the employment of ships of war,) would, if literally observed, defeat the intentions of Congress.

The Commissioners will not say that it is utterly impracticable to carry this system literally into effect. If Congress were to make the appropriations sufficiently large to guard against every possible contingency, and to ensure an adequate amount under each head, to meet every possible expense arising under that head; and if all the agents were so thoroughly acquainted with their duties, as to be able at all times to decide correctly, as to the specific heads of appropriation to which each and all of the numerous articles required, should be charged; then, if the Department would take care to keep in the hands Towards the close of every year some of the specific of all the disbursing agents a balance under each and appropriations are found to be deficient. The ships, proevery head of appropriation, so as to enable them prompt-bably, whose expenditures occasioned this deficiency, are ly, and in good faith, to redeem all the public engage- abroad in distant seas. Bills are drawn upon the Goments at their respective agencies, a literal execution of vernment for their support, and under this very head of the law might be expected. But would Congress make appropriation whose deficiency has just been discovered. excessive appropriations? No enlightened friend of the These bills cannot be protested; they must be paid; and, Navy would make such a proposition. And experience under such circumstances, the Secretary of the Navy fully shows, that disbursing agents, even those most ac has generally directed them to be paid out of some of the customed to Navy business, will occasionally misappre- redundant appropriations. Demands are made from other hend instructions, and unintentionally pay accounts out parts of the world, and by disbursing agents in the U. of the wrong appropriation. And we would observe, States, upon the same deficient appropriation, and mothat the absolute necessity of keeping balances in the neys are remitted under other heads to enable them to hands of the agents under each appropriation, would meet pressing engagements. When the accounts of dismake the aggregate of balances so large as to form a se- bursing agents are received for settlement, if all the aprious objection. In no case would it be expedient-in propriations under which their disbursements have been some cases it might be unsafe-to entrust such balances made, should then be sufficient to enable the Auditor to even to bonded agents; for they would generally far ex- settle them, it is done by warrants of payment and repayceed the amount of their bonds. ment; the former purporting to be warrants authoriz. The estimates, upon which the appropriations are founding the payment, to the disbursing officer, of specific ed, are prepared with all the care and accuracy of which sums, corresponding, in their respective amounts, to his the fallible judgment of man will admit. Yet, after all, overpayments; the latter purporting to be drafts upon they are but estimates; and until it shall be given to us, him, requiring him to pay into the Treasury certain unexto foresee the events of futurity, the fluctuations in the pended balances in his hands, under those heads of apmarkets of the world, and the casualties of the ocean, we propriation where his expenditures were short of the reshall never arrive at precise accuracy in our calculations, mittances made to him. By these warrants not a cent is as to the expense of a Navy employed in every known sea, taken out of the Treasury or paid into it; the disbursing and experiencing the vicissitudes of every known climate. officer, in whose favor, or upon whom, tthey are drawn, is A degree of accuracy, sufficient for practical purposes, wholly ignorant of them. They result from a Treasury may be gained; and this is all that can be reasonably arrangement, and are said to be indispensably necessary expected. Yet, even in this case, it will be found that some in adjusting the account of the appropriation. If, how items in the estimate are too low, others too high; but ever, any of the appropriations should be insufficient, so take the whole together, and they may prove sufficient. that these warrants of fictitious payment could not be The item of "Pay of the Navy," the expense of which drawn upon them, without showing that the expenditures may be approximated nearer than that of any other item under them had exceeded the sum total of the appropriaof Naval expenditure, is liable to be affected in its amount tion, then the accounts of the disbursing agents must by unforeseen contingencies. For instance, seamen's remain unsettled. It is believed that there are numerous wages may rise, and it may become necessary to give accounts precisely in this situation, at this time, that have them a bounty to induce them to enter into the public been so for some years past, and that such accounts can service. A few more seamen, or a few less, than the never be settled without the interposition of Congress. number estimated for, would produce a variation between the expenditures and the estimates.

These complex, fictitious operations, in the settlement of Navy accounts, were unknown till the year 1809, and, Besides, it has not always been the pleasure of Congress until then, accounts could always be settled by the plain to appropriate the whole amount of the estimates, which and simple rule of charging individuals with the amount has frequently occasioned embarrassment; for instance, of moneys placed in their hands for disbursement, and, the estimate for "Repairs of vessels," for the year 1829, crediting them with the amount of their disbursements, was curtailed in the appropriation $75,000, and that for when properly vouched. The law of 1809, requiring "Navy Yards," was reduced $225,000. The reductions that accounts shall be kept so as to be charged to the ap occasioned the suspension of important measures, contem-propriations, renders these operations necessary in their plated when the estimates were made; the postponement adjustment, while it has greatly multiplied the forms, and of which must ultimately create additional expense. increased the labor, without any advantage that the Commissioners can perceive.

But nearer views of the existing system of Naval appropriations may be required for its thorough comprehension. Let us see it in practice.

That all disbursing agents should be required to account, satisfactorily and promptly, for all the moneys plae

SEN. AND H. OF REPS.]

Annual Treasury Report.

[21ST CONG. 1ST SESS.

The balance in the Treasury, on the 1st of
January, 1828, was

ed in their hands; that the forms of keeping, rendering, The expenditures for the same year, in-
and settling their accounts, should be so plain and intel- cluding public debt, were,
ligible as to be clearly understood, not by able accountants
only, but by every member of the community (for every
member has an interest in them) are propositions which
no one, it is presumed, will attempt to controvert. It has,
we hope, been satisfactorily shown, that the act of 1809
has not produced these effects; and a modification of that
law, and of the act of the 1st May, 1820, heretofore re-
cited, appear to be necessary in the accomplishment of re-
sults so desirable.

The receipts from all sources, during the
year 1928, were

Customs

Viz:

Lands (statement D)
Dividends on Bank Stock
Incidental Receipts (E)

Making an aggregate of

were (F)

Viz:

23,205,523 64
1,018,308 75
455,000

The Commissioners would recommend, that the accounts be kept so as to show the cost of building ships, of repairing them, their annual cost in the service, and the cost of every authorized object of improvement; that the esti- The expenditures of the mates be made so specific as to be distinctly understood, so that every appropriation shall be made with a thorough understanding as to the amount required for each object; Civil, Diplomatic, and Misthat the power of transferring them from one appropriation to another, as the exigencies of the service may render necessary, be committed to the President; that, at the commencement of every session of Congress, reports be made, showing the expenditures of the year, and the various objects to which the moneys appropriated shall have been applied.

If these suggestions, and those heretofore presented in this communication, relatively to the organization of the different branches of the Department, and the duties appropriate to each branch, be approved, the Board would further respectfully recommend, that the appropriations for the Navy be, hereafter, made under the following general heads, viz:

For Pay and Subsistence of the Navy.

For building, repairing, and equipping vessels, including their wear and tear at sea, and ordnance, and ordnance stores.

For Navy Yards, Docks, Wharves, and all improvements therein.

For Provisions, Medicines, and Hospital Stores. For Contingent Expenses, such as transportation, travelling expenses, the purchase of Books, Maps, Charts, Chronometers, Nautical Instruments, and other articles necessary for the service, and not specifically provided for.

This arrangement would leave the first item, viz: Pay and Subsistence of the Navy, under the immediate direction of the Secretary of the Navy; the second, third, and fourth items, would come under the immediate direction of the respective branches heretofore proposed; and the last item, viz: "Contingent Expenses," to be drawn upon by each, as such expenses should arise in each branch, until experience should inform us as to the probable amount required under each branch, when the appropriation might be divided into specific sums for each.

I have the honor to be, with great respect, sir,
Your most obedient serv't.
JOHN RODGERS.

Honorable JOHN Branch,
Secretary of the Navy.

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cellaneous

Military service, including
fortifications, ordnance, In-
dian affairs, pensions, and
arming the militia

22,656,764 04

6,668,286 10

24,789,463 61

110,631 22

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8,676,052 64

5,719,956 06

Naval service, including the
gradual increase and im-
provement of the Navy 8,925,867 13
Public Debt
12,163,438 07

Leaving a balance in the Treasury, on the
1st of January, 1829, of

The receipts into the Treasury, during the
three first quarters of the present year,
are estimated to have amounted to
Viz:

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5,972,435 81

19,437,280 98

24,602,280 98
And, with the balance on the 1st of Janu-
ary, 1829, forming an aggregate of 30,574,666 79
The expenditures for the three first quar-
ters of the present year have amounted,
by estimate, to (I)

Viz:
Civil, Diplomatic, and Mis-
cellaneous

Military service, including
fortifications, ordnance, In-
dian affairs, pensions, arm-
ing the militia, and internal
improvements

Naval service, including the
gradual improvement of the
Navy

Public Debt

The expenditures for the
fourth quarter, including
3,689,542 98, on account of
the public debt, are estimat-
ed at

2,482,415 50

5,155,256 44

2,565,979 24

8,715,462 87

7,245,481 05

Making the total estimated expenditures of
the year

Leaving in the Treasury, on the first of Ja

18,919,114 05

86,164,595 10

nuary, 1880, an estimated balance of 4,410,071 69 On this balance, which includes the funds heretofore reported by this Department as not effective, there have

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been reserved, under the 4th section of the Sinking Fund Act of 1817, $2,000,000, and the residue has been held to meet existing appropriations.

But, of those appropriations, it is estimated, on data recently furnished by the proper Departments

1st. That there will be required, to complete the service of the year 1829, and of previous years, $2,457,173 16, which sum will be expended in the year 1830.

2d. That the sum of $862,251 84, will not be required for the service of those years, and may, therefore, be ap plied, without being re-appropriated, in aid of the service of the year 1830; as will be more fully stated when the estimates of the appropriations for that year are presented.

3d. That the sum of $115,962 03 will be carried to the surplus fund, at the close of the present year, either because the objects for which it was appropriated are completed, or because those moneys will not be required for, or will no longer be applicable to them.

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[SEN. AND H. OF REPS.

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58,406,418 05 Total amount in 1881

In 1832-four and half per

cents

On the 1st of Jan. 1833, four and a half per cents,

Total redeemable in 1832

8,017,695 51

⚫ stocks,

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6,018,900 72

5,000,000

2,227,363 97

7,227,363 97

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Treasury notes,

outstanding

Mississippi stock,

outstanding,

28,965 91

9,261 27

6,055 09

The payments made, and to be made, on account of the public debt, for the year 1829, amount to

Of this sum, there will have

been paid for interest,

And on account of principal,

8,017.695 51

Interest

1,951,437 05

9,969,132 56

In 1881-to the payment of

12,405,005 80

principal

6,018,900 72

Interest, say

1,687,060 08

2,563,994 25

9,841,011 55

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Leaving the total debt, on the 1st of Janu

principal

7,227,363 97

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Interest, say

1,186,115 04

Viz:

8,413,479 01

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ment L,

42,536 57

8,313,247 64

Of the sum applied to the payment of the public debt, In 1834-to the payment of in the year 1829, $10,049,630 50 have accrued under the second section of the Sinking Fund Act of 1817; which completes the whole amount of that appropriation

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arrears of internal duties di-
rect tax, and canal tolls
which is to be added the
balance estimated to be in
the Treasury on the 1st of
January, 1830

Making an aggregate of

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[21ST CONG. 1ST SESS.

150,000

4,410,071 69

28,250,071 69

The inconvenience to which the Treasury will be ex- | Incidental receipts, including
posed by this cause, may be averted by redeeming the
stock subscribed to the Bank of the United States, and
authorizing the Commissioners of the Sinking Fund to pur-To
chase the three per cents, when, in their opinion, the terms
on which such purchase can be made, will render it as fa-
vorable to the United States as the payment of other
stocks, then redeemable. This stock is now quoted in the
market at about 874. An unlimited authority to redeem
it, would, no doubt, somewhat enhance the price: but
this effect would, in a great degree be counteracted by
the option to redeem other stocks. If, however, the reve-
nues, can, in the opinion of Congress, be more advantage-
ously reduced, or otherwise disposed of, when the other
stocks shall be redeemed, the payment of the three per
cents may be postponed; subject to the operation of a
emall Sinking Fund, to be applied conditionally, viz:
when the stock can be bought at a reasonable price, to be
fixed by law. In such case it will be necessary to the full
employment of the present Sinking Fund to give the
Commissioners power to purchase the five and four and a
half per cents at their market price.

The expenditures for 1830 are estimated at 23,755,526. 67
Viz:
Civil, Diplomatic, and Miscel-
laneous

III. Of the Estimates of the Public Revenue and Expen-
ditures for the year 1830.

Military service, including for-
tifications, ordnance, Indian
affairs, pensions, arming the
militia, and internal improve-

ments

2,473,225 62

5,525,189 95

Naval service, including the
gradual improvement of the
Navy
Public Debt

4,257,111 10 11,500,000 00.

Which will leave an estimated balance in
the Treasury, on the 1st of January,
1831, of

The amount of duties on imports and tonnage, which 4,494,545 02 accrued from the 1st of January to the 30th September, If the foregoing estimate of the revenue and expendi1829, is estimated at $21,821,500, being $2,621,300 less ture be correct, the sum at the disposal of the Commisthan that which accrued in the corresponding period of sioners of the Sinking Fund, for the year 1880, will be the preceding year. This deficiency has arisen almost $11,500,000, and when the increase of population is entirely in the 1st quarter of the present year, and was considered, may probably be safely computed at probably caused by the extensive importations which had $12,000,000 for the four succeeding years. This sum been made in the early part of 1828, in anticipation of the will complete the payment of the whole Public Debt, increased duties. In the 2nd and third quarters of the year, within the year 1834, without applying to bank shares. however, the importations have so augmented, that accruShould it be determined to reduce the revenue, so as ing duties secured in those quarters are but 49,300 dol- to correspond with the existing expenditure, it will relars less than those secured in the second and third quar-quire the exercise of a wise forecast, on the part of the ters of the preceding year. This improvement still con- Legislature, to avert serious injury. Merchants having tinues, and there is reason to believe that the duties ac- goods in hand, liable to be affected in price by a change in eruing in the fourth quarter will nearly equal those of the the fiscal system of the Government, have a just right to fourth quarter of last year. It is worthy of remark that expect from it a reasonable notice, corresponding with the the accruing revenue of the three first quarters of the magnitude of the change proposed. In accordance with year 1829, though so much below that of 1828, is only these views, it is respectfully suggested, that, whatever 270,200 less than that of the same period of the year diminution of duties shall be determined upon, it be made to take effect prospectively and gradually.

1827.

The debentures issued, during the three first quarters of 1829, were 3,059,060,25 which exceeds the amount is sued during the corresponding period of the year 1828, by 96,475 70.

The amount of debentures outstanding on the 30th of September last, and chargeable upon the revenue of 1830. was $1,111,136, exceeding, by $65,992, the amount chargeable on the same day in 1828 on the revenue of

1829.

The value of domestic articles, exported from the United States, for the year ending on the 30th of September last, is estimated at $55,800,000, being 5,130,331 more than the value of those exported during the same period, in the preceding year.

The amount of Custom House bonds in suit on the 30th of September last, was $6,591,714 20, being $1,967,435 45 more than on the same day in the preceding year. It may be observed, that the great increase of this item, for several years past has arisen from the heavy failures in the China trade; in which series of bonds falling due from the same houses, commence in one year, and terminate in another.

From a view of all these facts and considerations, the receipts for the year 1830 are estimated at $23,840,000. Viz:

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It will, in such case, be proper, at an early period, to select the articles upon which to commence the reduc tion. As auxiliary to this undertaking, the annexed tables, M and N, have been prepared. Table M exhibits the amount of duties accruing on such articles of importation, as are generally of foreign production. Table N exhibits the tariff of duties imposed by foreign Governments, on such articles as are produced in, or exported from, the United States, as far as has been ascertained at the Treasury Department.

The precise effect of a reduction of duties on the revenue, can only be ascertained by experience; but, as the imports will be somewhat increased by the operation, it is not apprehended that a gradual reduction, commencing at an early day, would sensibly prolong the total extinguishment of the public debt.

The various duties devolved on the Treasury Department, in relation to Custom Houses, and Land Offices, have led to the exercise of powers not sufficiently defined by law. These are liable to be enlarged by successive gradations, under special exigencies, without legislative Banction, until the powers of the Department to perform indispensable duties are derived from usage, rather than the statutes. Of this nature, are those exercised in the payments for contingent expenses of the Cutter service, repairs to Custom Houses, Wharves, and Ware-houses, belonging to the United States; expenses to Inspectors employed in special services, in addition to their per diem compensa

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