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

to the Preiident, and to confer there- on with inch committee as this houfe ihould appomt for that purpofe : — 'Whereupon, Ordered, That a committee, toconfifl; of five members, be appointed for the purpofe exprelled in the refolution of the Senate. The members ele»51ed, Mr. Benfon, Mr. Ames, Mr. Madifon, Mr. Carroll, and Mr. Sherman. The houfe then proceeded to consider the refolutions reported from the committee of the whole on the Itate of the union. Mr. BouDiNOT Complained that the articles were generally taxed too high, not too high for the article to bear, but too high tor the due colledlion of the revenue. Every thing we tax fhould be conlidered as it relates to the interell ot the importer, as well as other circumlbnces ; now if it is dif- covered that the duties are fo great as to make it a benefi- cial trade to the merchant to ran his goods, he will do i'o and injure the revenue. When this fubjeft was before the committee of the whole, he expreflVd a dehre for gentlemen to get informa- tion from fuch fources as was likely to be the pnrelt ; in conformity with this delire, he had endeavored to avail iiimielf of the few leifure moments which his avocations al- Jowed him, in order to afcertain what would to be the a-  ; J26 DEBATES — -mount of the duties A. 1789. the rilque of fmuggling, and what de- gree of temptation merchants will be under to engage in this practice. The duty on fpirit is fo high as to afford a very Itrong temptation ; and when we confider the exrenlive* nefs of our fea coafts, we fliall find it impoffible to place our guards fo thick as to prevent the importer from falling into the pradtice ; we ought not therefore to make the in- ducement fo ftrong as to endanger the lofs of the revenue. But fuppofe, on experience, we difcover the fatal tendency of the meafure, can we lower it with conveniency ? certainly we cannot, as it regards the fair trader. The article of Madeira wine will bear a heavy duty, as well as fpirits ; but in laying a duty on it we ought to con- fider its lituation 5 we pay for it in the produce of our country is one confideration ; but when it arrives it is not immediately produftive, it is necefi'ary to keep it fome years before it is fit for fale. Now, on a cargo of 200 pipes of Madeira, the duties will amount to 3000 or 2600I. this is a very large fum for a merchant to pay from his capital no doubt the government will give lome credit, but we cannot give a credit equal to the merchants neceffity. The temptation will be encreafed from the want of means to difcharge the duty ; and the advantage of clearing 3000I. on a cargo, will make it the molt advantageous trade a per- fon can engage in. Will not fo large a reward as this a- waken all his powers to defraud you, and to evade the checks which you are obliged to eftablifh ? but if many offi- cers are neceflary to watch the faithful collec^tion of the im- poft, they will defeat the object of revefiue as much as a lofs by fmuggling, they will confume the whole in com- peniating their fervices ; beiJde, fuch eftablifhmentsare odi- ous to the people, and will render the government itfelf unpopular. The duty on 2,500,000 gallons of Weft-India rum, which is lefs than the quantity actually tonlumed in Ame- rica, calculated at is. only, will amount to 125,0001. the duty on 5000 pipes of Madeira wine will be at leaft 67,5001. befide the 12 cents on all other wines What an extravagant fum above half a million of dollars for thefe two articles alone ? Can this be in proportion to our wants? furely it exceeds them. But it is to be feared after all, that thefe high duties will diminifh the revenue rather than encreafe it. Such is the natural confeqnence refulting from an extenfion of the fubject beyond what it is capable of bearing, he knew a fact in point, when molailes was fub-  A. 1789. Of C O NG R E S S. 127 jeded to a duty of 6d. a gallon in this Hate, a perfon who was conliderably in the trade did not pay at the rate of a farthing per gallon for feven or eight years,- but when the duty was reduced to id. he paid 1200I. annually. This anecdote willferve to fliew the committee the propriety of not exceeding the bound of moderation, if revenue is their obje<^. In order to begin to make the reduflion, he moved to lower diltilled fpirits of Jamaica proof from 15 to 12 cents per gnllon. Mr. Madison. Was fenlible that high duties had a tendency to promote Imuggling, and in cale thofe kinds of fraud were fuccefs- fully practifed the revenue mud be diminilhed yet he be- ; lieved the fum propofed on fpirit was r.oc fo high as to produce thole effects to any conliderable degree. If any article is capable ot paying a heavy duty it is this ; if the duty on any article is capable of being collected with cer- tainty it is this; if a duty on any article is confonant with the fentiment of the people of America it is this; why then (hould not the article be made as tributary as podible to the wants of government ? But, befide thefe favour- able circumltances, I think the combination of the mer- chants will come in aid. of the law, the people will alfo lend their aid. Thefe circumltances would do much toward enfuring the due collection of the revenue. Mr. Jackson Seconded Mr. Boudinot's motion for reducing the duties, becauie he was well convinced they were too high even to be well collected, unlels we eltablilh cuftom-houles every ten or twelve miles, like watch tovv'ers along the Ilea coafts. W hen trade is fo unproductive, the Legillature ought to be careful how they make it more worth a man's while to live by committing frauds upon the revenue than by practifing honetl commerce. Theve is another confideration which particularly regard- ed the Georgia trade I'hai country abounding with lumber : of the molt luxurious growth, could only exchange it for rum, and a very conliderable commerce grew out of this intercourle favourable to Georgia, ihis would be affected by the impolition of heavy duties ; but commercial conii- derations, v,/c Ihall be told, form only a fecondary objetl in this bufinefs. There is another proportion in which he acquiefced ; it would be more convenient, and more to the honor of the houle, to make their firlt efi'ay with low du- ties ; becaufe if they periiited in laying them high, they 128 DEBATES A 1789. \voukl be compelled to an inglorious retreat, nnd the go- vernment would be inlukcd. In the flate he reprcfemed, it was next to impoliible to colleft the revenue, the country was fo interiefted with navigable creeks and rivers, if the people were diipol'ed to evade the payment of it, and there was no more certain way to produce this dil'pofitiou than by making it their interell to defraud you. Mr. Wadswortji Conceived the duty njuch too high, and joined tlie gen- tlemen of the oppolicion, ni believing ic never can be col- leftcd ; the quantity of rum in]i)orted was full 4,000,000 gallons annually, can it be thought that the whole of this du- ty will be paid, or even a condderable part of it ? he thought it would not. The Britifh Vvdicn in poircflion of this coun- try, only impofed a duty of 3d llerling on molades, but with all their cuitoui houfe officers, their navy, their cut- ters and energetic executive, they were unable to obtain it; when it was reduced to one j)tnny they got ibmething. How then can the Federal Government expecft without thefe aids to collect a higher duty, when even the fpecie in the countrv is inlufficient to pay the wliole amount of it. If we attempt a thing that is impraclicable, v/e fhall expofe our weaknels without effetfting any one good purpofe what- soever ; by modei-ating the duties we lliall obtain revenue, and give that encoin-agement to manufadures which is in- tended but by perlilting in keeping them fo high, we fhall ; obtain nothing, and the law will be de{trucT;ive of itfclf. Mr. FiTZsiMONS. If it is the opinion of the houie that the duties agreed to in the coiriiihitee cannot be colIec:led with any tolerable certainty, they will agree to a reduclion. One gentle- jnan tells you it is impoilible to prevent fmuggling, another that there is not money enough in the country to pay the duties, and another that their amount exceeds the wants of tlie United States. Have gentiemen made a calculation of the amount of thole duties ? if they have, do they find it exceeds even the probable wants of the United States ? it will be improper to make a demand ot fo if it does this, much ;but 1 believe if the calculation was made, and the whole of the duties carried into the total, we (hall flill fall fomething fhort ot what is abfolutely nccefTary to dif- charge our national obligations and fuppoi't the govern- ment ; bur if there is not money enough in tlic union to pay thefe things, the government mull go without it, we can have no ahcruaiivc. Jim w hether anv or all cf thofe A. 1789, Of C O N G R E S S. 129 oblervations are true, is but ir;atter of opinion, we have not the means of afcertaining them with precilion ; for my own parr, I entertain fentiments very different from thofe delivered by tiie gentlemen in oppofition. One of thein flated a faft relative to the collection of the duty on m,o- lalles when at 6d. and id. per gallon ; no doubt it is true, but the inference does not hold good in the cafe be-, fore us, the gentleman only propofes a rcdu6lion from 15 to 12 cents. Whether we can prevent fmuggling or noc^ v^'ill be beft afcertained when the bill for collefting the du- ties fliall be brought forward Such a bill is now in the : hands of the comoiittee, and I trull that it will be adequate, to the objeft ; if it guards fufficiently againll fmuggling or defrauding the revenue of 12 cents, it will require but very little more circumfpecTiion to lecure n^. The gentle- niau from New-Jerfey (fates the embarraffments to which the importer will be fubjedted by having to make fuch large payments for duties out of his capital ; he iupports this by iuppofing a merchant obliged to pay 3000I. on 200 pipes of Madeira, but there are very few fuch cargoes imported into the United i::tates ; but fuppofe there were, can not the bill 1 alluded to before regulate the time and manner of payments, fo as to give an opportunity to the owner to fell enough of the article to difcharge the duty before it is demanded ? This is the practice in England, where the duties frequently exceed double the value of the article, and by a mean of this kind he can avoid employing his capital in the pnyuient of the duty. Gentlemen have remarked on the impoffibility there is of preventing an illicit trade being carried on. I know it v^'ill be more dif- ficult to provide againft this in fome (fates than in others ; but gentlemen will recolledl, that generally thofe places wfiere goods can be landed with privacy are places of but little confumpiion ; it will therefore be necefTary to remove them to others, and I trufl this removal can be fo guarded as to fruftrate the attempt. To defraud the revenue in this view, a peri on who has got his goods on ihore in Geor- gia will be little nigher his objed than if they v.ere in the VVeft-Indies. The duty on a hogfhead of rum will be about 16 or 18 dollars, the fraudulent trader will calculate