Notes on Treasury Estimates for 1804
[ca. 10 Oct. 1803]
|Balance in the treasury Oct. 1. 1803. say||5,888,000.|
|Revenue of 5. quarters to Dec. 31. 1804 @ 10,400,000.||13,000,000|
|Arrears of direct taxes & other sources||150,000|
|Demands in last|
|In last quarter of 1803|
|Balance due to 7,300,000 D. approprn.||2,350,000|
|¼ of last years estimate for other objects||650,000.|
|Annual approprn for debt||7,300,000|
|2d. British paiment||888,000|
|British awards & treaty expenses||150,000.|
|1. year’s int. on Louisiana loan||1,025,000.|
|6. months on 1,750,000. Bank||98,000.||12,036,000.|
|Paiment of American claims||_________||2,000,000|
|Arrears of direct tax and internal revenue||500,000.1||<500,000>|
|Balance in Treasury Dec. 31. 1804.||1,314,000||1,314,000|
|Balance in the Treasury||5,888,000|
|Arrears of direct tax & internal revenue||800,000|
|do. adv. pros claims &c.||150,000|
|Do. awards & treaty exp.||150,000|
|remain in treasury||1,824,000|
MS (DLC: TJ Papers, 136:23475); undated, but see below; entirely in TJ’s hand; arranged by TJ with the “Resources” and “revenue” column to the left of the “Demands” and “expenses” column; in three distinct sections as indicated by horizontal rules, with totals of $19,238,000 in the first section, $6,838,000 in the second, and $10,600,000 in the third; probably made in several sittings; endorsed by TJ: “Oct. 1803.”
resources: on 17 Oct., Gallatin informed TJ that the Treasury balance as of 30 Sep. was $5,860,000. In his 1802 report to Congress on the state of the finances, Gallatin estimated the ongoing revenues for 1803 at $10,000,000, with all but $500,000 coming from duties on imports and tonnage (ASP description begins American State Papers: Documents, Legislative and Executive, of the Congress of the United States, Washington, D.C., 1832-61, 38 vols. description ends , Finance, 2:5). In early October, Gallatin calculated that the louisiana revenues collected at New Orleans would amount to $200,000 (see Document V of Drafting the Annual Message to Congress, printed at 1 Oct.).
demands in last: the 1803 estimate of permanent expenses for government offices, the military, and other objects was $2,660,000, bringing the total, with the $7,300,000 for the retirement of public debt, to $9,960,000 (ASP description begins American State Papers: Documents, Legislative and Executive, of the Congress of the United States, Washington, D.C., 1832-61, 38 vols. description ends , Finance, 2:5-6; Vol. 39:25-7). british paiment: under the convention signed on 8 Jan. 1802, the U.S. agreed to pay $2,664,000, in three annual installments of $888,000, to settle British prewar debt claims (Vol. 33:277n; Vol. 34:323-7). TJ probably based the civil estimate and other estimates for 1804 expenditures on documents submitted by the departments, which have not been found. His entry of $800,000 for the initial navy estimate seemingly was based on the report by the Navy Department that Gallatin promised in his letter to TJ of 6 Oct. and that TJ used as the basis of his Notes on Reducing Navy Expenses of this date and his letter to Robert Smith of 10 Oct. The convention under the Louisiana Purchase, which called for the payment of $3,750,000 in claims of U.S. citizens against France, would partially be paid for with a $1,750,000 bank loan. The remainder of the payment for american claims would come from the $2,000,000 appropriated earlier in the year for the acquisition of New Orleans (ASP description begins American State Papers: Documents, Legislative and Executive, of the Congress of the United States, Washington, D.C., 1832-61, 38 vols. description ends , Finance, 2:48-9; Gallatin to TJ, 11 Aug.; Document V of Drafting the Annual Message, printed at 1 Oct.; Annual Message to Congress, 17 Oct. 1803).
adv. pros claims: that is, the advances made in England for the prosecution of claims, which would be repaid to the U.S. It appears in the expense column as “British awards & treaty expenses.” TJ’s entry of $150,000 is the same amount entered by Gallatin in his report to Congress (ASP description begins American State Papers: Documents, Legislative and Executive, of the Congress of the United States, Washington, D.C., 1832-61, 38 vols. description ends , Finance, 2:48).
annual revenue: in his late October report to Congress, Gallatin estimated $10,000,000 in revenue from imports after deducting expenses for collection and drawbacks. He added nothing for postage, noting that the “extension of post roads, and the acceleration of the mail, whilst diffusing and increasing the benefits of the institution, have, as an object of revenue, rendered it less productive” and negligible. He entered $400,000 in revenues from the sale of lands, giving a total in estimated revenues for 1804 of $10,400,000 (same, 47-8; Report of the Secretary of the Treasury, Containing the Present State of the Finances of the United States, and the Estimates of Receipts and Expenditures for the Ensuing Year [Washington, D.C., 1803; Shaw-Shoemaker description begins Ralph R. Shaw and Richard H. Shoemaker, comps., American Bibliography: A Preliminary Checklist for 1801-1819, New York, 1958-63, 22 vols. description ends , No. 5477], 3-5).
annual expenses: TJ’s entry for the sinking fund is based on the $7,300,000 appropriated annually for the retirement of the public debt, plus an additional $800,000 to cover the interest on the new Louisiana stock, for a total of $8,100,000. In the Treasury report received by Congress on 25 Oct., Gallatin allowed $700,000 for interest on the new stock for a total sinking fund payment of $8,000,000. Gallatin also informed Congress that he would seek appropriations of $791,000 for the civil department; $184,000 for permanent expenses “attending the intercourse with foreign nations”; $875,000 for the “Military and Indian departments”; and $650,000 for the navy, for a total of $2,500,000 (same, 6, 8; ASP description begins American State Papers: Documents, Legislative and Executive, of the Congress of the United States, Washington, D.C., 1832-61, 38 vols. description ends , Finance, 2:48-9).
1. This entry was interlined by TJ and then added to give the total of “1,814,000” but TJ erased the “500,000” from the column with totals and did not include the amount in the “19,238,000” balance.