Amendments to the Constitution, [8 June] 1789 — reading text

require in its execution, But there would alfo be a danger of vefTels running into creeks and fniall inlets for the purpofe of landing their cargoes as well as on thefeaihore. Hence a necefiity would arife of employing a number of veffels to check and correct fucli abufes, and the probable event w.ould be, that all the im- pott coileftcd v/ould go to defray the expence of getting it into the treafury. Rum is 2u article of great co2ifumption throughout the union. The ffate I have the honor to reprefcnt has im- ported from April 1786 to April 17B7, n quantity exceed* ing 850^000 gallons of which only 67,000 were exported, confeq^uently the remainder has been confumed among our- felves, and the people of that part of New-Jerfey which draws its fupplies from this city. Now it appears tome not improbable but we ihallloofe a great deal of the reve- nue if we lay the duty fo nmch higher than heretofore. Being imprefied with thefe fentiments I mull vote againffc the motion for 15 cents, Mr. Boudinot, Enquired of the gentleman from New-York if rum was not alio fubjected to an excife in this ftate. Mn. Lawrance, There is no otlier duty than what I have mentioned, which is permitted to be drawn back on exportation. Mk.. Madison, Did not fceho^v the in:pprt;ng ftates conldbe injured by ft h'rlt dutv more than the others, as all d«ties came into A. 1789. Of C O N G R E S S. 45 the federal treafury. He obfervcd that if Pennfylvania had been able to colleft with certainty a duty amounting to about 12 centb, when the two neighbouring ftates not only declined to co-operate but purfued a counter intereft, there could be no doubt but fo fmall an addition as three cents, laid to eflecl generally the whole union, might with equal certainty be coilefted. The committee nosv agreed to tax ardent fpirits of Ja- maica proof j 5 cents, and all other fpirituous liquors 12 cents. On filling up the blank on molalTes Mr. Madison. It is agreed I prefume, that ipirits of every kind are proper objects of taxation, but whether we ihall tax fpi- rits in the cafe before us, or whether we ftiall tax the ar- ticle from which it comes, is a queilion worthy of the confideratlon of the Committee for feveral reafons. I be- lieve it will be beif to lay our hands on the duty, by charg- ing this article on its iuiportation, to avoid a more difa- greeble meafure. 1 would therelore lay fuch a duty on mo- lallesas is proportioned to what we have alBxcd upon rum, making an allowance in favor of our own manufacture. I think 8 cents per gallon will allow a fufficient advantage to them, but of this I am not pofitive, and therefore fhall not pertenacioufly adhere to that lum if it be thouht too high ; but I prefume i arn right in the principle upon which I contend we ought to coilecl the duty on the im- portation of molafies in preference to any other way. Mx. Parker, Obferved, that the diilillcries made a very great profit on the manufacture of this article, and it would be en. creafed by the difference which vvas made in duty between it and VVeft-lndia rum he was an advocate for laying it ; on molalfes, becaufe he did not think this a proper time to enter upon an excife law — if the duty operated to dilcou- rage the confumption of the New-England rum, he thought it would have very happy confequences, he there- fore feconded the motion for Scents. Mr. Lawrance. Shall we, Mr. Chairman, tax articles which are necef- faries of life equally as if they were luxuries ? I apprehend not.- In fome parts of the United ftates this article is ufed as a neceifary among the poorer clafs of citizens, confe- quently if you tax it high, you unequally burthen that part ot the community who are Iciiil able to beai'. When 46 DEBATES A. 1789, theCongrefs oT i 783 had in contemplation to tax this article, I believe they did not propofe more than one penny, per- haps the change that has taken place fmce that time would warrant us to double that fum, for my part I fliould be willing to allow it, but the hon. gentleman from Virginia propofes four times as much as I judge to be proper. If it could becollecT;ed it would amount to a very great fum, but let us examine the probability there is of being able to do it. When you compare the tax with the price of the commodity, leaving out the confideration of its being a iiecelTary of Hfe, you find it is one to three, I aik getle- men to tell me candidly, will not the payment of the duty be evaded ? and Ihall we not deceive ourlelvesin calculating upon a revenue which we can never collecT: ? 1 believe, if I am well informed, on this fubjecT:, the tax which I propofe, will amount to about 40,000 dol- lars, fo great is the importation of this article:by the tax the honorable gentleman propoles, it would amount to 160,000, which I fear is more than can or ought to be col- lefted. This article as vi'as before obferved, is a raw material for manufacture, and which when diftilled is exported in confiderable quantities. If a heavy duty is laid, will it not prevent tlie exportation ? But fliould we even allow a drawback on what is exported, it will neverthelefs, confi- derably encumber the trade by obliging the merchant to advance much of his capital in duties, and will flill remain an oppreflion on the poor, who confume it in fubflance. Mr. Madison, Viewed the prefent queliion in two points of light. Firft, as itrefpeded the ufe of the article in the fubftance; and fecondj as it related to a manufafture of coniiderablc importance. If it was polTible to make a difcrinjination between them, he was ready to agree to one in fivor of the firfl; clafs ; but cosiceiving this to be imprafticable, he thought the qneftion was reducible to this, whether our revenue Ihould be lellencd as much as diflilled fpirits con-, fefledly ought to pay, and our country confcquently filled with' a bafer liquor, or whether we Ihall tax an article which will indirectly tax the rum manufactured from it hi due proportion to what is brought from the iOands. I do not conceive, (continued Mr. Madifon) that tlie quantity ot this article manufatiured and exported to fo- reign countries, is any wile conrulerable. 1 hnd by an account of the cirports of Mafl'achufectts (which appears tp A. 1789; Of C O N G R E S S; 47 be authentic) and it is a ftate that manufadures in full pro- portion to any other ftate in the union — that' there has been fliipped off to different parts of this country 49,943 gallons of rum manufactured there; to JNJova-Scotia 801 gallons ; to Europe 1206, and to Africa and the Eaft-In- dies 897 gallons. So that the great exportation which the gentleman from New-York mentions, is made to the ditferent parts of the United States and not to foreign countries, the duty there- fore will be principally paid by our own citizens who are the confumers. The gentleman has mentioned a draw- back as a relief to the manufadures, he does not perhaps confider the advantage which a general regulation of trade gives to the ftate manufacturing rum, the admiilion of that commody'into every ftate is perfectly free under the new conftitution, and unencumbered wirh the duties heretofore laid by the ftate legiflatures, from which it is manifeft, that a drawback fofar as relates to the coaftino- trade, is unnecefiary. I tliirtk alfo, that the fmall quantity expor- ted to Europe and Africa is too inconfiderable to juftify the leffiflature in allowing drawbacks, under which lyfteni great frauds caneafily be committed upon your revenue • to what purpcfe Ihall we colleft revenue if it is put in the power of every individual candeftinely to reclaim it with- out a poiTibility of our difcovering the injuftice. If adifcrimination can be fiiggefted I iliall readily agree to it ; but I think it cannot be done unlefs we iubftitute an excife, or a tax on ftills, neither of thele would be equal- ly convenient or produftive, and therefore lieither would be proper for the houfe to agree to. The proportion be- tween the duty on country rum at 8 ce its, and VVeft-India- at 12 cents, is a confiderable difference in favor of home made fpirits, and fufficicnt to aniwer the purpofe of pro- tecting the manufacT:ure. Mr. Fitzsimons. I think the duty on this article ^ depends in a great mea» lure upon what has been already agreed to. If the tax of \V eft-India and country rum is not well proportioned, it may be deftruftive of the end we have in contemplation. It agreeably to the idea of the gentleman fron. New- York, we affix a low duty, a great deal more rum will in all pro- bability be difhlled andufed than heretofore, of courfe it will effeaually rival the Jamaica rum, and the union wiU loofe the revenue which we calculate npon. 48 DEBATE^ A. 1789. Eight cents I apprehend is as well proportioned to the other ray.es as can bedevifed. Country rum is worth 2/3 which is more than half the price of Jamaica ipirits, fo that rum of the former quality, can be ufed fo much cheaper, as to eftabliih itlelf a greater confumption than hereto- fore. It has been mentioned as a necefTary of life — the facl is admitted, but ihall it be inferred from thence, that no du- ty ought to be collected from molaifes, while you impofe one on fugar, which is equally a neceffary of life, among the middle and fouthward Hates; altho the remark has been made already, I mull repeat it, and beg the committee to bear in mind, that whenever a tax on a particular article, feeras to bear harder on one ftate than another, we muft en- deavour to equalize it by laying foaie other to reftore an €quilibriu;n to the fy Hem. M. GoODTiUF.. Confidered molafles as a raw material, eflentially requi" fite for the well being of a very extenfive and valuable manufafture. It ouo-ht likewife to be confidered fas was tru- ly flated) a necelTary of life, in the eailern dates it entered into the d"et of the poorer clafs of people, who were from the decay of trade and other adventitious circumftances to- tally unable to fuftain fuch a weiglu as a tax of 8 cents would be upon them. Moreover the tax was upon particular flates, as well as individuals, for it was a facl" of public no- toriety, that MalTachuletts imported more molafles than all the other ftates altogether, (he imports from 30,000 to 40,000 hogfiieads annually. — He would make one obfervation more it bad been the policy of Great Britain, as he well remembered to encum- ber and deprefs the diitillation of molafles to do this at one time they laid a duty of 3d. fterling per gallon, it was conceived to be an oppreflive meafure, but it had little o- ther efFed than to caufe heartburnings and enmity, it pro- duced no revenue and the parliament were forced to re- — duce the duty to a penny from experience therefore as well as from the arguments before urged, he was inclined to belive that the committee vi'ould be fatisfied with fix- ing a lower I'um, for bispart he could not confent to allow jnore than two cents. Mr. Madison, Had heard an obfervation made by the gentleman from