erent character and properly payable at home. In the
large negotiations which Secretary Chase had in 1862 with the Treasury
Note Committee of the Associated Banks,[13] this policy was matter of
grave debate. The determined American pride of Mr. Chase prevailed, and
both the principal _and interest_ of the loans created were made payable
at the Treasury of the United States. These may be small matters in
their financial result, but are grave points in national policy.

The only financial legislation necessary to carry out the Louisiana
purchase was a provision that $700,000 of the duties on merchandise and
tonnage, a sum sufficient to pay the interest on the new debt, be added
to the annual permanent appropriation for the sinking fund, making a sum
of $8,000,000 in all.

The new debt would, Gallatin said, neither impede nor retard the payment
of the principal of the old debt; and the fund would be sufficient,
besides paying the interest on both, to discharge the principal of the
old debt before the year 1818, and of the new, within one year and a
half after that year. In this expectation he relied solely on the
maintenance of the revenue at the amount of the year 1802, and in no way
depended on its probable increase as a result of neutrality in the
European war; nor on any augmentation by reason of increase of
population or wealth, nor the effect which the opening of the
Mississippi to free navigation might be expected to have on the sales of
public lands and the general resources of the country.

In his report of December 9, 1805, Mr. Gallatin reviewed the results of
his first four years of service, April 1, 1801, to March 31, 1805.

RECEIPTS.

Duties on tonnage and importation of
foreign merchandise $45,174,837.22

From all other sources 5,492,629.82
--------------
$50,667,467.04
==============

EXPENDITURES.

Civil list and miscellaneous $3,786,094.79

Intercourse with foreign nations 1,071,437.84

Military establishment and Indian department 4,405,192.26

Naval establishment 4,842,635.15

Interest on foreign debt 16,278,700.95

Reimbursement of debt from surplus
revenue