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

this nature than they will in direft taxes ; if the gentlemen prevail m getting the duties lowered to what the late Con- grefs propofed, they will find themfelves obliged to have recourfe to direft taxation, for a million and an half, or two raillimi, of dollars. It then only remains for us to confider, whether it will be more agreeable to the people to reduce the import: in this manner, and raife the defici- ency by direct taxes. If thefe duties are to be confidered as a tax on the trading part of the community alone they are improper ; but this I believe is not the cafe, the con- fumer pays them eventually, and they pay no more than ^vhat they chufe, becaufe they have it in their power to determine the quantity of taxable articles they will ufe. A tax left to be paid at difcretion muft be more agreeable than any other. The merchant confiders that part of his capital applied to the payment of the duties the fame as if employed in trade, and gets the fame profit upon it as on the original r.oft of the commodity. As to the tax on diflilled fpirit, it will be felt as little as any other whatever and from this fource we are to ex- ; peJl a very confiderable proportion of the revenue. If we attend to what everv body fays abroad, we fhall have a great deal to do, but there is a great variety of opinions. I have received information from a gentleman of knowledge and experience on this point, and he fays, that it is his opinion, and the general opinion of thofe about him, that the duty on diltilled fpirits is too low by one-half the : fame are the fentiments even of the importers of this ar- ticle. The duty on it cannot be faid to be unequal, as it A. 1789. Of C O N G R E S S. 267 has been contended on other articles, it is pretty generally confumed throughout the United States. The Itate 1 be- long to is at a confiderabie diftance from the Weil- Indies, yet they confume no inconfiderable quantity, but much more than I \vi(h Ihe did. The gentleman irom South- Carolina feems to luppofe, that the duty will bear harder upon his Itate than upon others. 1 cannot think it will be the cafe, but if they do confume more, they ihould agree to a high duty in order toleflen the confunjption. As to the fubject of colle«5lion, they refer us to what was done under the government of Britain, in my opinion the comparifon does not hold good ; it was thought lawtul by the people of America to evade thofe duties becaule they were un- conftitutionally laid; they were not reprefented in the par- hament of Great Britain, and it is a principle that taxation is founded upon reprefentation. As to the colle(ltion of the State duties fince the peace, I think the governments have laboured under greater diiadvantao-es than the United States will under this fyftem ; the duties that were colledl, ed by them went into the treafury of the particular {late into which the goods were imported ; the people who con- fumed thofe goods in other liates, thought it a peculiar hardfhip to pay into their funds, wiiat they thought ought to belong to the United States, the great embarrallinent arofe from this inequality ; under the prefent lyltem each ftate will pay alike, and will be alike beneiitted. One gentleman has obferved, that there is not money enough to pay all the duties impofed in this bill but is ; ir. not as eafy to introduce money as merchaudiz? When there is a demand for it, the merchants will bring it in, for they can as well bring lefs of a commodity and more money ; fo that, if this Ihould take place, the objeftion will be done away. It is way that we mult be fupplied Vv'ith in this cafh, we have neither gold nor filver mines to becaufe draw it from, if we get it, it mult be imported, and v/ill be imported, if it is more advantageous than the importa. tion of other articles. I think we ought to rely a great deal on the virtue of our conftituents; they will be convinced of the neceihty of a due collection of the revenue ; they will know that it muft be done in this way, or it by dired taxation. will be I be- lieve the people will prefer this mode of railing revenue, and will give all the ailillance in the execution of the law that is in their power and as the mercantile part of the ; people will fee that it is equally laid, though it may be  268 DEBATES fomething higher than the frates have hitherto required, A. 1786, They will lubmit themfelves to our ordinance, and ule theii' influence to aid the collection. I know there will be Tome characters concerned in an illicit trade, afting without prin^ cipie, but I think we can reftrain them. It there is a de- gi-ec of infa'ny attached to the wrerches concerned in fmug- gling, and the practice is detelled by the community, a man v-'ill I'carccly be able to carry on fuch trade with advantage. It appe::rs to me, therefore, that we had beil let the fyltem remain as it is, the duties are reafonable, and will operate as equitable on the people at large, as is in our power to deviie ; it will at the fame time, as it raifes revenue, tend to enrich the country, b}^ promoting the induliry and ceco- no!;:7 of cur citizens. Mr. "white, Wlicn this fyficm firfi came before the committee, I was pp])ofed to enter into an enumeration, becaule I ibppofed much time would be taken up in the difcullion, which would be an abfolnte lofs of revenue, perhaps to a greater amount riian the difference between the duties of fuch a fyltem, and the one piopcfed by the late Congrefs ; but as it was thought proper by the commitiee to proceed in the way tjip-t we have done, it would be prefumption in me to fay, tliat the duty on every article has been perfectlj' digefted aiid properly laid, but I believe every article (tands as well as can be i^pon the information we are in pofieflion of, I believe very few, if any, of the articles can be dil'approved of. J he gentleman lait up, has anticipated every tliing that occurred to me on the iubject — the queition appeajs to turn, Mi-.ov, this point, whether the duties can be collefted or not ^ for my part, I have no doubt but they can. It has juftiy bc?n faid by the gentleman from Maflachuietts (Mr. Ame^-}, that money is the foul of government, that without juclia foul "a government cannot exift — then it will be ne- tcflary that we obtain this vivifying principle, the molt po- jnilarmode of doing it, is by way ot impolt, and I believe it was a prevailing uiotive with the people to adopt the new ConUitution ; I am fatiified in my own mind, that it will be the molt agreeable and leaft oppreflive of any mode in pnr power— if a popular meafure could b? efFeded without 3a w, what may we not fxpe6t from the co- operation of both? Betore the revolution, a private commercial combination regulated the importations between Anierica and Britain, if any man was iufpecled of an infraction of the non impor- ' 'fion agreement, his conduft was ftridly vatdicd it his ;  A. 1789. Of CONGRESS. 269 guilt was difcovered, he was publiflied and held up to the world as an enemy to his country. Something like this may be expefted to take place now, becauie every man is con- vinced of the importance and neceHity of enforcing the re- venue laws of the Union, this, in addition to our legal efta- blilhments, will give an efficacy to public meaiures, which other countries are unacquainted with. The eaftern Hates cannot be viewed in the odious light which is refledled upon them on account of their termer condu6l, that they combined in a fyllem of Smuggling was accident, it does not belong to their patriotic ipint ; they are 1 flatter myfelf the friends of good government, they knov/ the value of union, and u-ouid do nothing from prin- ciple to injure the general welfare. At the time when they defeated the machinations of a Eriiilh parliament to efFeft their ruin, tiiey looked upon the meafures not only as oppreffive but unconltitutionai and unjutl, and the man who oppofed them with vigor and fuccels was regarded as his country's friend. But the contrary will now be the cafe, and the man who fiiall aim at the deftruftion of his country by frauds on her revenue, will be conlidered our greateit enemy. The man who can flab to the vitals and Ipill the hearts blood of rhe government (for money is the vital principle) muft be bafe mdeed. Thefe circumflances will make a deep impreflion on every mind, and each will furnilh h'is individual aid to obtain the full and due execution of the law. If this fpiric does prevail and becomes gene- ral there will be no difficulty in carryiiig the reguJation into operation. Mr. FiTZsiMONS I have liftcned with an anxious dehre of hearing fome- thing important on the queftion which now agitates the committee, but I mufl: fay that nothing of that kind has reached me. There has not a fingle argument been ufed this day but what has been urged before; after this re- mark it will not be expefted that I fliould take up the time of the committee by making a reply to what 1 conceive has been fully replied to already. But as much has been faid refpefting the public opinion on the am.ount of the duties, I muft beg them to excufe me a few words on that point. With refpeft to the opinion of commercial men, and I live in a ftate where commerce is pretty well underftood and purlued, a ftate whole imports are as great as any in the union, from that quarter I have received information dif- fering efTentially from what has been ftated by the gentle- 270 DEBATES man from Maflachufetts ; A. 1789, fo far are they from complaining of them in that ftate, that they think them rather low, they have no doubt as to the colledion. Having heard the fame fentiment from other quarters I think fo far as the com- mercial opinion can he afcertained 1 may venture to aflert it is in favor of the duties agreed to. The particular article of fpirits, is peculiarly fitted for raifing a confiderable duty, it is of fmall value, great bulk, and general confumption, thefe are circumflances which make the revenue certain and important. If gentlemen believe rum an irrefiflable temp- tation at 15 cents per gallon, they mult imagine feveral articles charged but 5 per cent ad valorem equally fo, be- caufe they can be fmuggled with greater profit and lefs rifk of deteftion. A man can carry on his Ihoulders valuable goods fubje<^fed to a duty of five times as great an amount as what is charged upon a hogfhead of rum. A pound of hyfontea at two Ihillings is a greater incentive to fmuggling than a gallon of ruin at 15 cents, yet I do not remember to have heard gentlemen contend againft the duty on teas on that account. If revenue is to be raifed by way of impoff, we muftfeled thofe articles that are leaft liable to become objeds of illicit trade ; I believe a proper attention has been paid to this point, and am therefore well fatisfied with the lift con- tained in the bill. A gentleman from Virginia (Mr. Bland) has faid, that the prefent fcale of duties will raife a revenue of 13,000,000 dollars, if he is well founded in this opinion, molt certainly the duties ought to be