Gazette Of The United States

FINANCIAL MEMENTO.

From the FEDERAL GAZETTE.

I HAVE had my attention seriously engaged by the publication of the Estimate of the Supplies requisite for the United States in the year 1789. On investigating this report of a committee, it appears that the annual demands on the Union for the civil list expenditures, the instalments due on foreign loans, and the interest on the foreign and domestic debt, amount to 3,207,096 21-90.

Deduct instalments and premium on the loan 490,962 89-90

2,716,133 24-90 which is the clear amount of the annual contributions for the support of government—for the payment of the instalments is a liquidation of so much of the capital of the foreign debt, which by being extinguished, will require a proportionally less sum to be raised in subsequent years for interest.

As for the various arrearages, which the report takes notice of, and which form the balance of the sum total, they are not to be considered as an annual demand, but will probably be consolidated with the capital of the debt, and the interest thereon be alone required.

So far from room for despondency in the minds of the good people of these States, by such a representation of their affairs, it exhibits the most flattering and favorable prospects. The annual requisitions will not amount to a dollar per head, estimating the population of the Union at three millions: A small demand, in exchange for such invaluable blessings as peace, liberty and independence; and which must be lightly felt in a country that can afford to pay three shillings per day for a common laborer.

It is not probably a fourth of the contributions that we should have been compelled to furnish towards our proportion of the national debt of Great Britain, if we had remained under the domination of that haughty and exacting nation. But let us enquire what is the relative situation of other countries, with respect to quantum of public contributions.

Great Britain under the operation of a government, that it must be confessed pays pointed attention to her agricultural, commercial and manufacturing pursuits, flourishes, notwithstanding an accumulation of public debt, that demands an annual supply of sixteen millions sterling, to satisfy its interest, and support her other expences. But the people are so little oppressed by these demands, that they are enabled, with ease, to raise by taxation a sufficient sum to constitute a sinking fund, which in the course of the last year extinguished two millions of the capital of the national debt.

Calculating on eight millions of inhabitants in Great Britain, there will be apportioned to each individual, as an annual contribution, forty shillings sterling, which is betwixt eight and nine dollars per head.—What a flattering consideration for the citizens of the United States, arises out of the comparative situation of the two countries!—But what renders the reflection still more pleasing, is, that Great Britain may be deemed stationary, if not declining, in her population, and consequent resources. But the United States present an unbounded field for progressive population; and the increase of inhabitants will ease the burthen of the debt, by additional numbers participating in the support of its weight.

This augmentation does not only arise from natural increase in a country situated like America, where the means of subsistence are so easily to be procured—but likewise from the rapid emigration that will necessarily take place, from the superior encouragement that a government, so well constituted to favor civil and religious liberty, and protect the rights of property, will offer. Such emigrations are usually, accompanied with considerable acquisitions of property, which add to the general stock of the community.

When the United States of America have arranged their financial system, and made ample provision for their existing claims, the progressive increase of the taxes, arising from various causes, joined to the sales of the western territory, will form a considerable surplus, that may be applied to the gradual and speedy extinction of the capital of the public debt.

The beneficial effects of the funding system, when founded on proper principles, will be felt through all classes of the community—as it will throw into circulation the capital of the domestic debt, increase thereby the general stock of the country, and facilitate the various purposes of alienation.

If a comparative view was formed of the public debts of France, Spain, or Holland, the United States would find, that it would induce a result much more favorable than even that with Great Britain.

This communication of Congress can therefore give no cause of exultation to the enemies of the government. Foreign nations must respect the resources of a country, abounding in such powerful means, and so unfettered by its present engagements.

A FRIEND TO THE UNION.