The direct tax imposed for 1814, was three millions: that for 1815, five millions : for 1816, three millions.
The sums received on account of the internal taxes, in the years 1814, 15, 16, and 17, amounted to 14,143,852 dollars: on account of the direct taxes, in the same years, 10,469,992 dollars. On account of the internal taxes in the three succeed ing years, 1818, 19, and 20, the receipts were 1,291,133 dollars: on account of the direct taxes in the same years, 397,570 dollars. On account of the internal taxes, in the nine years from 1820 to 1829, both inclusive, 304,702 dollars : on account of the direct taxes, in the same period, 91,996 dollars : making an aggregate of 15,739,688 dollars, received on account of the internal taxes; and of 10,941,550, received on account of the direct taxes. A small part of the war taxes is yet to be collected.
By an act of the 3d of March 1817, so much of any acts as authorised the issuing or re-issuing of treasury notes, was repealed : all the treasury notes which had become, or should become, the property of the United States, were directed to be cancelled or destroyed, at such times, and under such regu lations and securities as the commissioners of the sinking fund should establish. At the same time, all such acts as authorised any further loan were repealed, and the appropriation in favour of the sinking fund was increased from $8,000,000 to $10,000,000. To dwell on the modifications which this act made in the sinking fund, is unnecessary. It has not been by opening a separate account under the head of ‘, Commissioners of the sink ing fund" and entering thereunder certain debits and credits, that our national debt has been re duced to its present small amount. It has been by keeping the expenditures for a series of years below the receipts, aided in no small degree, at the commencement, by that system of measures, through which the after consequences of the finan cial policy of 1812-14 were thrown off the govern ment, and thrown on the incorporated institutions and the people. " Strictly speaking," says Dr.
Seybert, "the essential character of a sinking fund, was not to be found in the operations of that of the United States: all its sources might vary and fail: even the application of the fund was varied with circumstances. The annual reports of the commiss ioners exhibit the sinking fund in the payment of the interest and charges, and the redemption of the principal of the public debt; in the reimburse ment of temporary loans, and the absorption of treasury notes; in the payment of commissions and charges to agents in the United States, and in Europe; in the payment of arrearages due to the army, and in discharging the floating debt. Instead of being uniformly confined on a single line of operation, it was active in all situations as tempo rary circumstances indicated." If, since the time of Dr Seybert, what is called the Sinking Fund, has been more faithfully applied to the purposes expressed by law, it has been be cause there has been less necessity for diverting it from its original object.
The balance in the treasury at the commencement of the year 1818, was a little less than 15,000,000 dollars. The receipts from customs during the year were 17,000,000; from the internal and direct taxes, being part of the arrears of the same, up wards of 1,200,000; from the public lands, 2,600,000; from the Bank of the United States upwards of 500,000. The whole revenue fell a little short of 21,600,000,which, with the balance in the treasury, made a sum of nearly 36,000,000 for the service of the year.
During this year a reaction commenced, the se rious consequences of which were long felt by many of the people. We can but briefly describe causes and effects which it would require a volume fully to unfold.
The provisions of the charter of the United States Bank were, that its capital should be S35,000,000, of which 7,000,000 should be sub scribed by the government and paid in five pee cent stock. Of the remaining 28,000,000, which were to be subscribed by individuals, three-fourths were made payable in government securities.