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pondence carried on at so great a distance. Your government has desired to see the epoch of this arrangement draw near. His majesty is animated by the same dispositions, and willing to assure to the negotiation a result the most prompt, he has thought that it would be expedient to suppress the intermediaries and to transfer the conference to Wilna. His majesty has in consequence authorized me, sir, to treat directly with you if you will come to this town. I dare hope that, with the desire which animates us both to conciliate such important interests, we will immediately be enabled to remove all the difficulties which until now have appeared to impede the progress of the negotiation.

I have apprized the duke of Dalberg that his mission was thus terminated, and I have laid before his majesty the actual state of the negotiation, to the end that when you arrive at Wilna the different questions being already illustrated (eclaircies) either by your judicious observations or by the instructions I shall have received, we may, sir, conclude without delay an arrangement so desirable and so conformable to the mutually amicable views of our two governments. Accept, sir, &c.


Mr. Barlow to the Secretary of State. Sir,

Paris, October 25, 1812. By the letters from the duke of Bassano and my answer, copies of which are herewith enclosed, you will learn that I am invited to go to Wilna, and that I have accepted the invitation. Though the proposal was totally unexpected, and on many accounts disagreeable, it was impossible to refuse it without giving offence, or at least risking a postponement of a negotiation which I have reason to believe is now in a fair way to a speedy and advantageous close.

From the circumstances which have preceded and which accompany this proposition, I am induced to believe that it is made with a view of expediting the business. There may indeed be an intention of coupling it with other views not yet brought forward. If so, and they should extend to objects beyond the simplicity of our commercial interests and the indemnities which we claim, I shall not be at a loss how to answer them.

I shall have the honour to write you as soon as possible from Wilna, and shall return to Paris without any unnecessary delay. I remain, &c. (Signed)

J. BARLOW. Honourable Fames Monroe, &c. VOL. I. PART I.


Letter from the Secretary of the Treasury, transmitting his

annual report on the state of the finances ; in obedience to the act to establish the Treasury Department.


Treasury Department, December 4th, 1812. I have the honour to enclose a report prepared in obedience to the act, entitled “ An act to establish the Treasury Department.”

I have the honour to be, very respectfully, sir, your obedient servant,

ALBERT GALLATIN. The Honourable the Speaker

of the House of Representatives.

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In obedience to the directions of the “ Act supplementary to the

act, entitled . An act to establish the Treasury Department, the Secretary of the Treasury respectfully submits the following


1. To the end of the year 1812.

The actual receipts into the Treasury, during the year ending on the 30th of September, 1812, have consisted of the

following sums, viz. : Customs, sales of lands, arrears, repay

ments, and all other branches of revenue, amounting together, as will appear

more in detail by the statement (E) to $ 10,934,946 90 On account of the loan of eleven millions

of dollars authorized by the act of March 14, 1812,

5,847,212 50

$ 16,782,159 40

Total amount of receipts
Making, together with the balance in the

Treasury, on the 1st of October, 1811,
and amounting to

$ 3,947,818 36

An aggregate of

$ 20,729,977 76 The disbursements during the same year have been as followeth,

viz.: Civil department, including miscellaneous

expenses, and those incident to the intercourse with foreign nations,

$ 1,823,069 35 Army, militia, volunteers, for

tifications, arms, and arsenals $ 7,770,300 Navy department,

3,107,501 54 Indian department,


11,108,776 54 Interest on the public debt, 2,498,013 19 On account of the principal of do. 2,938,465 99

5,436,479 18 Amounting together, as will ap

pear more in detail by the statement (E), to

18,368,325 07 And leaving in the treasury, on

the 30th of September, 1812, a balance of

2 361,652 69

$ 20,729,977 76 The statement (Ee) exhibits in detail the payments made by the treasury department for the several branches of the military and naval expenditure, during the same year (from 1st October, 1811, to 30th September, 1812); and also during the two last two months (October and November, 1812). The receipts for the last quarter of the year 1812, on account of both revenue and loans, are estimated at 9,000,000 dollars; and the expenditures (including about 1,500,000 dollars on account of the principal of the public debt, and 1,000,000 for the militia) at nearly the same sum. The sums obtained or secured

on loan during this year, amount, so far as has been ascertained at the treasury to [a]

$ 13,100,200 Of which there was received

prior to 1st October, 1812, as above stated,

$ 5,847,212 50 Received or to be received prior

to 1st January, 1813, 6,202,987 50 To be received in January and February, 1813,


13,100,200 This sum was obtained on the following terms, viz: For six per cent. stock irredeem

able till 1st January, 1825, and afterwards redeemable at the pleasure of the United States,

$ 7,415,200

[a] The amount was stated in the president's message at the commence. ment of the session at eleven millions of dollars. The other two millions have been contracted for subsequent to its date,

On temporary loans at the rate

of six per cent. a year, and re

imbursable as followeth, viz: In 1813,

$ 1,350,000 1814,

750,000 1817,



For treasury notes, bearing an

annual interest of 5 per cent. and reimbursable one year after date,


$ 13,100,200 From the present demand, it appears probable that the residue of the treasury notes, authorized by the act of 30th June last, and amounting to $ 1,465,000, will be disposed of prior to the 1st of March next.

It may be proper also to state, that, notwithstanding the addition thus made to the public debt, and although a considerable portion has been remitted from England and brought to market in America, the public stocks, which had at first experienced a slight depression, have been for the last three months and continue to be at par.

II. Year 1813.

The net revenue arising from duties on merchandise and tonnage, which accrued during the year 1810, amounted to

$ 12,513,490 The net revenue arising from the same sources, which accrued during the year 1811, amounted, as will appear by the estimates (A) and (B), to

$ 7,902,560 The same revenue for the year 1812 is estimated at

$ 12,500,000 Of which sum, about 5,500,000 arise from duties on the lateimportations from Great-Britain.

The custom-house bonds outstanding on the 1st day of January, 1813, and falling due in that year, are estimated, after deducting bad debts, at 11,250,000 dollars : and it is believed that the probable amount of receipts from that source into the treasury, during the year 1813, may be safely estimated at 11,500,000 dollars.

The sales of public lands north of the river Ohio, during the year ending on the 30th September, 1811, and after deducting the lands which have reverted to the U. States, have amounted, as appears by the statement (C), t6 390,000 acres; and the payments by purchasers to 790,000 dollars. The Indian war may

affect the sales, and perhaps, to a certain extent, the amount of payments. It is, however, believed that that branch of revenue may, together with some other small items, be estimated for the ensuing year at 500,000 dollars : making the whole amount of probable receipts into the treasury for the year 1813 (exclusively of loans)

$ 12,000,000 The expenditures for that year are estimated as followeth, viz.: 1. Expenses of a civil nature, both foreign and domestic,

$ 1,500,000 2. Public debt, viz.: Interest, including that on new

loans of the years 1812 and 1813,

$ 3,300,000 Reimbursement of six per cent.

and deferred stocks, and of temporary loans, and treasury notes, falling due in 1813, and estimated amount of purchases of stock,


8,500,000 3. Military establishment:

The estimates of the secretary of war are, with respect to the army, predicated on the employment of the whole force authorised by law, and amounting to 36,700 men of every description. Adding to this the expense incident to the service of volunteers and militia, and also the increase of pay of the army, the appropriation for arming the militia, and 400,000 dollars of the unexpended balance for fortifications, the whole contemplated expense may be estimated as follows: Army-Pay, subsistence, boun

ties, clothing, and hospitals,

$9,350,000 Ordnance and armories, 1,850,000 Quarter Master's de

partment and contingencies,

2,500,000 Fortifications,

900,000 Arming the militia, 200,000 Volunteers and militia

in actual service, 2,000,000 Indian department, 200,000


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