It being very inconvenient to the government to remit the sums required in Europe to pay the inter est and instalments of the principal of the foreign debt, an attempt was made in 1795 to commute this debt for stock, the interest and principal of which should be payable in the United States. As an in ducement to the foreign creditors to accede to this arrangement, they were offered a half per cent ad ditional interest. The French alone accepted the offer; and, inconsequence, certificates for $176,000, of four and a half per cent stock, and S1,848,900 of five and a half per cent stock were issued. The last portion of the French debt having been in this way commuted, Holland was from the year 1795 re garded as the only foreign creditor of the United States. The sum originally due to her having been increased by moneys borrowed to discharge the Spanish and great part of the French debt, the whole amount owing to Holland on the I st of Jan uary 1796, was 11,939,000 dollars, bearing aft in terest of four and of four and a half per centum. :Many years elapsed before this debt was completely extinguished.
In 1798, the president was authorised to receive into the public service such armed vessels as might be offered on credit by any persons, for which cer tificates of stock bearing an interest of six per cent should be issued. In this way the Navy six per cents were created. They amounted in 1799 to 711,700 dollars.
In the same year, the president was authorised to borrow five million of dollars, upon terms the most advantageous to the United States, to be applied to making up deficiencies in appropriations, and to defray the expenses of raising, equipping and call ing into actual service, the militia, volunteers, and regular troops. Eight per centum was allowed for this loan, and the whole sum was obtained.
In 1800, three million five hundred thousand dol lars were authorised to be borrowed on terms the most advantageous to the United States: but only one million four hundred and eighty-two thousand. could be obtained at eight per cent per annum.
We have already alluded to the abortive attempt made in 1796 to borrow five millions at 6 per cent, of which only 80,000 could be obtained.
The effect of these different transactions was such, that on the 1st of January 1801, the debt of the United States was as follows: On that day, the public debt was greater than on the first day of any other year, from the adoption of the constitution to the year 1814 inclusive, except ing in 1804, when the debt was increased by the purchase of Louisiana.
During the whole of-this period, the revenue from the customs was gradually increasing, as may be seen by inspection of the table of receipts, at the end of this article. In 1792, the customs yielded S3,443,070. In 1800, upwards of $9,000,000. The revenue from internal taxes, which was 5200,000 in 1792, amounted to 5800,000 in 1800, besides up wards of S700,000 derived in that year from the new direct tax. Yet, owing to the succession of
difficulties encountered by the government, the pub lic debt, funded and unfunded, was greater by about six millions, than it was at the adoption of the con stitution.
The whole amount paid into the treasury, from 1792 to 1802 inclusive, on account of the internal taxes laid previously to 1800, was 6,105,097 dollars. The greatest amount that accrued in any one year was in 1801, being 989,533 dollars 29 cents, and ac cruing from the following objects: The greatest amount received on account of these taxes, was in 1801, being S1,048,033. Small sums, on account of these taxes, continued to be received at the treasury for many years after the acts impos ing them were repealed.
The duty on spirits was, at first, from 9 to 30 cents a gallon, according to the proof or strength; and 60 cents a gallon on the capacity of a still, used in a town. These duties were subjected to several modifications. The duty on retailers of wine and spirituous liquors was five dollars each. In 1794, the duty on a coach was ten dollars; on a chariot, eight dollars; on a phaeton or coachee, six dollars; on any other four-wheel, and on every two-wheel top carriage, two dollars; on every other two-wheel car riage, one dollar. By an act of 1796, the duties were increased about 50 per cent. The duty on refined sugar was two cents a pound. On sales by auction, from a quarter to a half per cent. The stamp du ties were laid on bank notes, legal documents, bills of lading, Ecc. and were various in amount.
By the time Mr. Jefferson entered into office, most of the difficulties the new government had to en counter, had been surmounted. This rendered it practicable to make some desired changes in the system of finance, and on the 6th of April 1802, an act was passed repealing the internal taxes from the 30th of June of that year. On the 29th of the same month an act was passed appropriating 7,500,000 dollars to the Sinking Fund. From that time to the breaking out of the war with Great Bri tain, in June 1812, the Sinking Fund was efficient.
On the purchase of Louisiana, the United States agreed to pay 15,000,000 dollars; 3,750,000 dollars to be paid to our own merchants for their claims of a certain description on the French government, and the remainder, being 11,250,000, to be paid in stock at six per cent. To carry into effect this agreement, stock to that amount was issued, in pursuance of an act of congress passed November 10th 1803, and made payable to the assignees of the French government. By the same act the sum of 700,000 annually, was added to the Sinking Fund, to pay the interest on the stock.