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

reduced, becaufe it is a much larger fum than the wants of the union require ; but 1 cannot flatter myfelf into fuch a belief, 13,000,000 of dollars is too great a fum to be expected, even if all the powers and exertions of Congrefs were drawn into aftion. But let us examine what may be the wants of the United States dur- ing the current year. The expence on the civil lift cannot be eiiimated with accuracy for want of an eftablifliment of the various departments, but it will probably equal the ex-^ pence of the late Congrefs, if you conceive the members of the Legiflature to be paid out of the Federal Treafury ; add to this the fums ftated to be arrearages by an eflimate I have feen from the board of treafury, it will amount to 4,507,000 dollars ; then the inftallments of the foreign debt together with intercft on the fame, and intereft on the do- meltic debt, for which provifion remains to be made, will probably encreafe it to 8,000,000 dollars ; now if gentle- men apprehend v/e fhall raife more revenue than that fum^ A. 1789. Of C O N G R E S S. 271 within the current year, it will operate as a llrpng motive upon them to vote for the reduction of the duties, and if gentlemen fuppofe that the duty is fo high upon rum as to convince them it will inevitably be evaded, it will be a fufficient argument to induce them to vote for the prefent motion. The colleiflion of our revenue has been compared to the colleftion of Great Britain, but (he collects 4s. fterling per gallon on Wefl-India rum, 6 times as much as we have a- greed to, and yet I believe a very unimportant quantity of Jamaica fpirit is fmuggled into that kingdom ; the fmug- gling trade is moftly carried on from France and the Ne- therlands in fmall veiTels, where the rifk and alFurance is in- confiderable ; I believe large vefTels are very feldom con- cerned in fuch contraband trade, becaufe the hazard more than over balances every confideration of profit refulting from fuccefs. The circumftances of America and Britain are different ; America is remote from commercial nations, and European goods that are made dutiable by this law, muft generally be imported in veiTels of confiderable value ; if the owner attempts to fave a part of the duties or evade the laws, he will riHc the whole, for I truft Congrefs will not negledl any fecurity that may be derived from fufficient penalties upon the violators of the laws. For my part I nave no doubt but the revenue will be faithfully collefted, but certainly there are many other articles more liable to objection on this account than rum, yet there was noadverfe argument urged againft them, therefore I fuppofe the com- mittee were fatisiied with them as they fland. Mr. Ames. The gentleman from Pennfylvania fat out with inform- ing us, that nothing new had or could be offered on the fubjeft, yet you found, Mr. Chairman, the gentleman had a good deal to fay, which I thought new and much to the purpofe. As to applying the observation to myfelf, in common with the advocates for low duties, I Ihall decline it, only noting that the long difcuinon which the fubjecl; has had, would reifrain me from riiing on this occafion, more than any remarks of the fame nature, as thole made by the gentlemen from Pennlylvaiiia and Conne6licut ; but I am actuated by higher motives than a regard to my own feel- ings, otherwife I fhould come reluctantly forward to preis arguments which the committee may be fatigued with liften- ing to; but I feel fuch ftrong impreHions on my mind, with regard to the elfccT:s our impoft la ,v is likely to produce, that  ^72 DEBATES — I cannot pafs it over with a {ilent vote A^iji^ I mufl: admonillij gentlemen, that the events which may rei'ult from our pre- feuc mcafures, are of the moft alarming nature. When I was up before, I endeavoured to fhew the degree of power the government could exercife without being charged with an ill adminiilration. I Ihall now proceed briefly to confider the arguments ui'ed in reply to what has been advanced by the advocates for moderate duties. I believe it is a good rule to judge of the ftrengch of a caufe by the arguments uled to defend it ; and here I muft- take the liberty of laying, that the gentlemen on the other fide of the queftion have adduced not one to fupport their opinion that has car- ried convi(5lion to my mind. I confider that by a decifion of this queftion the good which the new government is expected to produce may be rendered problematical. Tho' I am fully iinpreiled with the necelTity there is for revenue to fuppiy the public expences, yet I cannot believe we are likely to obtain more by heavy duties than by temperate ones, and it is to this point which iiiy arguments tend. I do not believe that in either cafe we ihall procure fully fufficient to fupply the public demands. If we have to pro- cure 8,000,000 dollars, I venture to fay, not near the half could be raifed by an iinpoll fyftem, but admitting that it could by a high fcale of duties for the iirfi: year, it could not be done in the fubfequent ones. Now I regard thio as a permanent fyilem of revenue, rather than a productive one ; if it is laid high, you will find your collection animal- ly diminilh. Now, will any government take fuch mea- fures in gathering in its harvelt, as to ruin the foil ? will they rack-rent their tenants in fuch a manner as to de- prive them of the means of improving the eftate ? Such can never be the policy of this enlightened country. We know, from the fundamental principles of republics, that public opinion gives the tone to every aftion of the govern- ment, the lavv s ought to correfpond with the habits and manners, nay, I may almoft add, willies of the people. Well, Mr. Chairman, we are told a tax: upon rum is po- pular, I will agree with the gentlemen, but iliil a high duty will induce people to run it, and though the confuuier may pay the tax without complaining, yet it will go into the pockets of iiiJividuals who defiMud your revenue. Gen- tlemen have complained that we do not offer a fubllitute for what we find lault with, I will endeavour to explain a fyftem I would place in the roo;n of this. I would re- duce the duties "cnLTallv fo low as to hold out no encou- A. 1789. O F C O N G R £ S S. 273 ragement to fmiiggling ; in this cafe, it is more than pro- bable, the amount of the impoft, at tlie end of one year, would exceed the colledlion under the prefent rate. By givhig this proof of moderation and wildom, v/e Ihouki obtain the public favour and confidence, the government would be acquiring ftrength, its movements would be more certain, and we could in every fubfequent year extend the fyftein, and make the whole productive ; then it would be in the power of government, by aids, to improve our agri- culture, m a nu failures, and commerce. Our imports are now very great ; by the encreafe of our commerce^ we fhall probably find our revenue produce twice as much feven years hence as it can be expected to do at prefent. The duty on Welt-India rum is moderate and popular fay gentlcn^en, it is nst the intereft of MaiTachuffets that id fhould be reduced ; fo I am arguing againft the intereil of the ftate I have the honor to reprefent ; the higher the duty on Welf-India rum the more country rum will be uied ; but I fhould facrifice the facred trull depofitcd in my hands if 1 was to be aduated by a local motive of this na- ture. The higher the duty the more officers mud be mul- tiplied, the more guards muft be employed, the more troops miifl be kept in pay for the fip.ircllion of clandeftine trade. Under higli duties the people wili pay m'.i.ch, the government receive little. Vv'ill they not then juftly complain of the ufelefs burthens you have impoied ? ufelefs I call them, un- lefs government have in coniemplation to make them con- ducive to opprefs and injure their confticuents. If you punilh feverely the breach of yo\ir laws, v/ill not the peo- ple combine agaiiitt th>°m ? will it not be an additional fource of dillatisiaftion that the attempts to relieve them are unfuccefslul ? If gentlemen confider this fub- jeft ferioufly they will fee caufe to be alarmed : Who, in this cafe, can you apply to for fupport? not to the peo- ple, they want an alleviation of their miferies ; you have then noching left but the impotency of a government not fuiSciently matured to fupport itfelf. Gentlemen fay, that the funds to be produced by the propofed impoft are infufficient for the public demands ; if {o, why not flop fomewhat ihorter? if we muft have re- courfe to fome other mode of obtaining revenue, let us divide the burthen, and not deftroy one mean by loading it too heavily, if we do, the other mean will not only have its own proportion to fuilain, but the accumulation of its weakened fellow ; or, do gentlemen fuppofe they -will Mm 274 DEBATES A. 1789, clear the United States of incumberances by one effort i-~^ they do not. W hy are we to grafp at fo much in this way i itwould be much better to call in the aid of other taxes and exciles, than by overloading deprefs one ot the molt capable and valuable funds in our pofTeffion. Under the Britilh government they have excife, Itamp-duties, impoll, malt, and land tax from which to defray their expences ; v.'hy ihou'.d we endeavour to do that with a fmgle fund when we have more in our power? The gentleman from Pennfylvania (Mr. Fitzlimons) has mentioned the great probability there is of getting a great duty from this article, becaufe the confumption is more ex- tenfive in the United States than in any other part of the world ; but this circumrtance will furnilh a Itrong induce- ment to fmuggle. lie fays there is but a fniall quantity of rum fniuggled into England. Gentlemen no doubt con. lider, that Great Britain is an ifland well watched, her cutters, and cuitom-houfe boats, are ever on the look-out, but, v.ith all thefe guards, and the advantage of her infular fituation, fhe is unable to prevent fmugghng. it has been reniarked^ that under the (tate laws experi- ence has taught us, that fuch duties as the bill has in con- templaii.'.i ca.i be collected ; and the genrlenipn fays, if they be collected under the (late laws, they can be colkdled lender this govej-nment ; if they have been able to colled: high duties in Virginia, it is becaule their trade is confined to enter. at one channel ; bi^t it is not fo with the eallern itdtes, there every attempt to raife high duties has prov^ed ioiHiloal • and the univerfiil opinion there is, that five per cent, would be more pfoducT:ive of revenue than fifty ; this is not mere niatter of opinion^ as has been faid, but is demonltrable from fad:s. The principle of taxation is to produce the greateft fum of money, with the greatefl eafe to the community If a gentleman in trade has on hand a cargo of rum, he is able to afford it at a lefs price than the perfon who imports it, fiibjectto ihele duties, therefore the latter w ill be under the liecedity of fmugghng, or Itoring his commodities, for he cannot afford to fell to a lofs, A. gentleman has mention- ed, that if we do not iucceed in the collecT:ion ot thefe duties, we may lower them. But will any gentleman fay, that if we lofe our duty, by the eitabliihment of a fyftem of friiuggling, that we ihall not continue to lofe after the law fiiall be repealed, and a lower rate of duties impoled. If gentlemen depend upon this fund alone, 1 think they A. 1789. Of C O N G R E S S. 275 ouirht not to