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

Vania therefore pay the duty on that quantity. I confider the objeft we ought to have in view is to lay our duties upon folid principles. I havegiven the princi- ples upon which we ought to reduce the impoft on molafles to 3 cents, I will only now mention the temptation that 6 cents would be to fmuggle ; but, as I inftanced before a fact relative to this circuniftance I will not repeat it, con- tenting myfelf in ftating to the houfe my fear, that a high 4uty will be unprodudive, while a low one of 3 cents wili be more favourable to the revenue. Mr. Madison I make no obfervation, Mr, Speaker, upon the lan-r fliall guage of the gentleman from Maflachufetts (Mr. Thatch- er) becsufeI do not conceive it exprefles either the deli- berate temper of his own mind, or the good fenfe of his conilitue-nts — I am more inclined to try this meafure by the rul,' of juftice, than on the imaginary effects which gentlem^ns apprehenfion fear it will produce. I do not find from what has been faid, yefterday or this morning, that the arguments have taken a different turn, or that the oppotition is fupported on any other principles than it was pn a former debate ; the fubjeds that were before difcufT- ed have been repeated and amplified, but no new matter has offered, nothing has been faid to invalidate the former decifion of the cominitiee j we are told again that the con- (equence of fo high a duty pn molaffes, will be the deftruc tion of one part of our commerce important to our allies, and effential to a confiderable manufa6lure,that without this branth of commerce our fiflieries cannot be carried on. I fhoujd have luppofed that, in order to make good this doc- |rine, the gentlemen In oppofition ought to have fhewn what difadvantage the manufadure of rum would be ex- pofed to greater than it ufed to be when the molaffes flood plear of duty, but had the competion of Weft-India rum alfo withcut'duty. I find before the revolution, that the quantity of molafles annually imported, amounted to 3,580,- — 544 gallons the quantity of rum manufactured within the , — f^me period was 2,^2^,^^^ gallons at this time Weft.-In- A. 1789. Of congress. 157 dia rum was fubjefted to no duty, and molafies paid one penny flerling per gallon, nearly equal to three cents, or half the prefent duty. Now if the inanufafture was carri- ed on with profit (and the extent of it proves that it was produftive) when it had to contend with a duty of 15 per cent, on the value of the raw material, againfl a fuperior liquor imported duty free. Is it to be imagined that this trade is to be deilroyed by a duty only double on mo- lafTes, when the competition is fupported by an impoft, 50 fold of what it was before, againft foreign rum ? 1 think it can be demonftrated from calculation, that if the duty was extended to 15 cents per gallon, it would ftill receive en- couragement fuperior to what it had before the revolution. If we compare the ftate of the manufacture fince the revolu- tion, we Ihall find it labouring under greater difadvantages than what can arife from the propofed duty. In almoft all the ftates it has been confidered and treated as foreign rum, yet even under the difadvantage which this muft have Gccafioned, we find that the exportation to the feveral parts of the United States amount annually to 5 or 600,000 gal- — lons a certain proof that it is able to carry on a fuccel'sful competition in America with Weft-India rum, without the aid of government ; and that the preference given by this revenue fyftem, and by the new conftitution which per. jnits its free entry into into every ftate, will enable the manufadure to rife into an importance hitherto unknown to it. We are told that molafles is not merely ufed in the dif. tilieries, but that it enters into the fubfiftance of the in- habitants as an article of food, and that in this light it bears harder upon the poor than upon the rich ; I will not de- ny but the confumption of molafles in fubitance is greater in the eaftern ftates than in the others j but I do prefume that this difproportion of confumption is produ<^ive of an equalization in the fyftem : If we compare the confump- tion of the northern and fouihern ftates, as it refpefts the articles of fugarand molafles, we fliallfind that the duty on molafles does not bear harder upon the one than fugar does upon the other ; for reduce a gallon of molafles to weight, in order to make the comparifon fairly, you will find it weighing at leaft 8 lb. now 8 lb. of this article taxed at 6 cents cannot be fo much as 8 lb. of fugar at i cent per lb. fo that on the ground of equality, I do not fee there is any room for the oppofition to maintain themfelves It has— been faid that the duty will be burthenfome on the mer?  158 DEBATES A. 1789. chants, and require greater capitals than they pofl'efs, or will neceflarily leflen their operations ; there may be fome weight in this confideration, but let me afk the gentlemen if it does not apply to our duties in general, but will they fay, that the objection is fufficient to deter us from this mode of taxation i I apprehend it will not be laid, be- caufe it has been conrtanily admitted in this houfe, that al- though it is an inconvenience, yet it isfuch an one as muft be fubmitted to, to avoid a greater, either we muft de- rive a levenue from this fource, or take a mode much more exceptionable. But how will it affecT: the fifheries ? it is faid that if rum is indiredly taxed through jnolaifes, it will ruin this interelt, yet at the fame time the ftate of Mafl'achufetts coUedls near 17 cents per gallon from rum; then there muft be a draw-back allowed on what is confumed in that bufinefs ; but I am informed there is no draw-back allowed, fo that the fiflieries at prefent labour under greater dif- couragement from the policy of Maifachufetts, than they will be expofed to from the policy of the United States. The gentlemen have told us that the duty cannot be col- lected, from a fuppofition that the officers will neglect their duty, or that the high impoft furniihed fuch a temptation that the people cannot withftand it, and muft of confe- que nee engage in an illicit trade ; if this fuppofition is war- rantable, how can the duty afFe ft the fiiheries ? if it is not warrantable can it be luppofed that a duty of three-fourths of a cent on a lb. of fweetening in the form of molaffes, will mortally affed the terms on which the filhermen car- ry on their bufinefs; and will it contribute to the fuccefs of other nations engaged in the fame employment ? When gentlemen fo repeatedly tell us, it -will be impolTible to guard again ft fmuggling, I own it has fome impreflion on jny mind ; I fear we Ihall encounter difficulties in this part of our regulations, but I truft they will not be greater, as they refpeft the colledtion of a duty on molalTes than on — other articles the bulk and weight, of which added to the fmallnefs of its value, will rather deter people from en« gaging in a clandeftine trade of this kind, than almoft any other ; I believe more juft apprehenfions may be enter- tained with refpeft to tea a lb. of which is taxed at 20 cents. 3 do not therefore conceive that the arguments drawn from the danger of fmuggling molaffes are of an inluper* able nature. Jt has been fuggefted to the houfe^ that there would bf A. 1789. Of C O N G R E S S. 159 more propriety and convenience in fubftituting an excife in lieu of part of the import duty ; for my part 1 conlider fuch a tax inexpedient if not impolitic ; it will not be ne- cefi'ary to go into a difcuffion of its expediency, for it is a queftion not before the houfe ; it will be time enough to enter upon the fubjec^ when it has been proved by expe- rience that the impoft is inefFedual, at prelent I will con- tent myfelf with obferving, that an excife, in my opinion, would be received with indignation in fome parts of the union, and it is not for this government to difgult any of its citizens if it can be avoided. It has been faid, that the duty agreed to by the commit- tee is higher than has been laid by any particular (late upon molafTes :granted, but are gentlemen unacquainted with this circumitance, all the rum imported from New-England into thofc ffates were fubjefted to a heavy duty, and the duty on the rum anl'wered the purpofe which the committee had in contemplation when they agreed to 6 cents per gal- lon on molaffes. The Hates have now difqualified them- felves from this mean of felf defence, if the general go- vernment therefore does not defend them they wilJ be abandoned altogether, to the effects of a torrent poured in upon them by the Maflachufetts diftillers. Surely gentle- men who are in favor of reducing the impoll on moialTes, do not conlider the efteft it will have upon the revenue ; when it ifands at 6 cents it leaves a bounty of feveral cents to favor a competition with Welt-India rum. We have been witnefTes to the great quantity manufadured even when the raw material had a high duty upon it, and had to contend with foreign rUm which was duty free. I have no doubt but under this favorable regulation the manufadlure will encreafe ; if the duty ihall be reduced we bid fair to lofe the great revenue we expetS from Weft-India rum, and have its place fupplied with a bafer fpirit. Thus the interefts of 3,000,000 of our fellow citizens are to be fa- crificed to the eilablilliment of a few diftilleries. If on a general view of the fyftem, gentlemen had pro- ved that Maflachufetts would be injured, they might with propriety contend for the reduction of this article ; but I think I can fay with truth, and fupport the pofition, that that end of the continent will not bear a greater propor- tion of the public burthen thanthe other — there are, as liasbeen often remarked before, parts of this fyftem which bear harder upon fome ftatcs than others, but take the whole together the duties will not be unequal j thofe iSo ftates that DEBATES raife lefs produce, A. 1,^89. export lefs, confequentl^ they import lefs, and confume in the fame proportion if — fo, they mud pay lefs impoft than other ftates. It is on thefe principles I contend againft a reduftion of the duty^ and 1 think the houfe upon a ftrift examination of the fub- jeft, will be found to have (hewn a great degree of libera- lity to their eaftern brethren, when they were fatisfied with carrying the import on molalfes no higher than 6 cents. Mr. Ames. I appeal, Mr. Speaker, with confidence to the juftice of this houfe, though I am far from being convinced that any liberality has been fhev^n in fixing the duty on molafies, but I am perfuaded that Congrefs will adopt no meafuresbat thofe they can juflify on principle to their conflituents. I conceive, fir, that the prefent conftitution was didlated by commercial neceflity more than any other caufe ; the- Ivant of an efficient government to fecure the manufacturing jnterefts, and to advance our commerce, was long feen by. men of jiidgmenr, Snd pointed out by patriots folvcitous to promote our general welfare, if the duty which we con- tend againit rs found to defeat thele objeds, I am convinc- ed the reprefentatiVes of the people will give it tip. I truft that gentlemen are well fatisfied, that the