CHAP. III. let Session. National Revenue-Imposts, and Tonnage Duties. 1st Congress. was charged with an impost amounting to nearths of a dollar, and an excise of ths more, all of which was collected on about 800,000 gallons, without much difficulty. The highest sum now proposed very little exceeded the duty collected in Pennsylvania. Mr. Boudinot expressed himself as in favour of the highest duty that could be collected. It was then stated by Mr. Lawrance, that the duty collected in the state of New York was about eight cents. The quantity imported into New York, from April, 1786, to April, 1787, was 850,000 gallons, of which only 67,000 were exported. If the duty were raised too high, much of the revenue from this source might be lost, by the ingenious evasions of the duty which would be practised. While he regretted the pernicious effects of the use of ardent spirits on the morals and health per gallon, of the people, he thought it became the committee to view the and 12 subject as politicians rather than as moralists, and to tax the other spi- vices which it was impossible to eradicate. It was then agreed ritous li- to tax ardent spirits, of Jamaica proof, 15 cents, and all other spiritous liquors, 12 cents. 15 cents cents on quors, a greed to. Molasses, 8 cents moved. On the article of molasses, Mr. Madison suggested that 8 cents per gallon would allow a sufficient advantage to our own manufacturers, while it bore a proper proportion to the duty on rum. The motion was seconded by Mr. Parker, of Virginia. Mr. Lawrance considered this duty too high, as it was a necessary of life. The Congress of 1783 did not propose more than one penny, and he was willing to double that amount, which would produce 40,000 dollars. The duty proposed by the gentleman from Virginia, would, if collected, produce 160,000 dollars, which he considered to be more than ought to be drawn from that source, since an excessive duty would prevent the great exportation of the article after we had manufactured it, and which was very productive to our citizens. Mr. Madison met this last statement by showing that Massachusetts, which manufactured as much rum as any other state, in proportion, shipped off to different parts of this country, 49,943 gallons of rum, manufactured there; while she exported to Nova Scotia 801 gallons, to Europe 1206, and to Africa and the East Indies 897 gallons: so that the great exportation alluded to, was made to the different parts of the United States, and not to foreign countries; and the duty was paid by our own citizens, who were the consumers. Mr. Fitzsimons was an advocate for 8 cents; which was opposed by Mr. Goodhue, who stated that Massachusetts imported, annually, from 30,000 to 40,000 hogsheads of molasses, and that when Great Britain laid a duty of three pence sterling per gallon on this ar 1789. CHAP. III. 1st Session. National Revenue -Imposts, and Tonnage Duties. 1789. 1st Congress. ticle, it was deemed oppressive, and caused heart-burnings and enmity. He would not consent to impose a higher duty than two cents. Mr. Thatcher, of Massachusetts, suggested that the committee was likely to get into difficulty by proceeding too hastily, and would move, if in order, to take up the resolutions of Congress of 1783, and lay on duties as nearly similar as can well be, to those recommended at that period; and then move for a committee to go on to review and consider of certain regulations necessary to form a permanent system at some future period. Mr. Clymer, of Pennsylvania, suggested to those who opposed this duty on the ground that it was a tax on the raw material of a profitable manufacture, that it entered into an injurious competition with another manufacture, the raw material of which was to be found in our own agriculture, and which was divested of the pernicious qualities attached to ardent spirits, that of malt liquors. The duty of 8 cents was opposed by Mr. Fisher Ames, of Massachusetts, who regarded it as a tax which would bear unequally and injuriously on that state. "We (said he) exchange for molasses those fish that it is impossible to dispose of any where else: we have no market within our reach but the islands from whence we get molasses in return, which again we manufacture into rum. These circumstances form a material link in our chain of navigation; and upon our success in navigation the most important interests of the United States depend. It is scarcely possible to maintain our fisheries with advantage, if the commerce for summer fish is injured, which I conceive it would be, very materially, if a high duty is imposed on this article; nay, it would carry devastation throughout all the New England states-it would, ultimately, affect all throughout the Union." He then viewed the importance of the fishery on the banks, as a nursery for seamen. It had been the policy of other nations to drive us from that prolific source of wealth and strength; and this high duty would accomplish what they had in vain endeavoured to do. Some further discussion took place between Mr. Fitzsimons, Mr. Ames, Mr. Goodhue, Mr. Lawrance, and Mr. Boudinot, in which no new Mr. Madi- facts were elicited: after which, Mr. Madison said he would be son modifies his mo- willing to agree to a small reduction of his duty; but thinking 6 tion to 7 cents too low, he would move 7 cents, and, for that purpose, withdrew his motion for 8 cents. The motion for 7 cents was negatived, and it was agreed to fill the blank with 6 cents. The article of Madeira wine was the next which provoked wine. a discussion. Mr. Sherman, of Connecticut, moved to fill the Con. Reg., mored. blank with fifteen cents. Mr. Gilman, of Massachusetts, pro- 57-60. cents. Madeira 15 cents Lloyd's vol. i. p. CHAP. III. 1st Session. moved. 30 cents. 50 cents. National Revenue-Imposts, and Tonnage Duties. 1st Congress. posed twenty cents; and Mr. Hartley, of Pennsylvania, moved Other wines. It was then agreed to lay a duty of 20 cents the gallon on all other wines. 1789. Lloyd's Con. Reg., vol. i. p. The committee, after agreeing to lay one cent per pound on 62, 63. Sugars and brown sugar, 3 cents on loaf sugar, 14 cents on other sugars, and 2 cents on coffee, rose and reported progress. coffee. On the 15th, the committee agreed to impose one cent per lb. Cocoa, ale, on cocoa. Some discussion then took place on a proposition by Mr. and porter. Fitzsimons, to lay six cents per gallon on beer, ale, and porter, im ported in casks. Mr. Lawrance, in seconding the motion, said, he would have the duty so high as to give a decided preference to American beer. After brief debate, Mr. Madison moved eight cents on all beer imported. He hoped this would be such an encouragement, as to induce the manufacture to take deep root in every state in the Union. In the state of New York, the duty 8 cents in had been six cents; and eight cents, if brought in foreign vessels. 25 cents The committee agreed to eight cents; and to 25 cents per doper dozen zen, on all beer, ale, or porter, imported in bottles. The arti casks. in bottles. Candles, cheese, &c. cles of beef, pork, and butter, were then stricken out of the list "On all candles of wax or spermaceti, per lb., 6 cents. "On soap, 2 cents. "On boots, per pair, 50 cents. "On all shoes, slippers, or golishes, made of leather, 10 cents. CHAP. III. 1st Congress. 1st Session. Steel. National Revenue-Imposts, and Tonnage Duties. "On all shoes, or slippers, made of silk or stuff, 10 cents." The next item being, "On all steel unwrought, for every 112 lbs." 1789. Lloyd's Con. Reg., vol. i. p. Mr. Lee moved to strike out the article, as necessary to agri- 68–73. cultural improvements, in which motion he was seconded by Mr. Tucker. Mr. Clymer said that a furnace in Philadelphia, with a very small aid from the legislature of Pennsylvania, made 300 tons of steel in two years, and now made at the rate of 230 tons annually, and, with a little further encouragement, would supply enough for the consumption of the Union. It was then denied by Mr. Fitzsimons, that a duty of five shillings per cwt., which was all he proposed, would operate oppressively on the agricultural interest. Mr. Madison wished the article to be passed over, and left among the non-enumerated ones, where it would be subject to an ad valorem duty of five per cent. The only object of its introduction here, must have been the encouragement of the manufacture, and not revenue, and, as it was so materially connected with the improvement of agriculture, and other manufactures, he questioned the propriety of the specific duty which was proposed, even upon that score. Mr. Tucker adverted to the oppressiveness of this tax on South Carolina, which state was already in a melancholy condition, the inhabitants being deeply in debt, and their produce daily falling in price. Rice and indigo were thought by many not worthy of cultivation. The ad valorem duty he would not oppose, and he thought that 66 cents should be deemed sufficient. Mr. Fitzsimons moved to fill the per cwt. blank with 66 cents, which was negatived, and a motion by Mr. moved. 56 cents Boudinot to fill it with 56 cents, was agreed to. The following agreed to. items were then agreed to:— Hemp. "On nails and spikes, 1 cent per lb. "On tarred cordage, 50 cents per 112 lbs. "On untarred cordage, 60 cents per 112 lbs. "On twine, or pack-thread, 100 cents per 112 lbs." -80. The item of hemp then produced considerable discussion, Mr. Id. p. 73 Madison having moved a duty upon it. He had wished to leave untouched every article connected with ship-building; but if it were politic to tax cordage, the same reason would justify taxing hemp. As a raw material, Mr. Boudinot thought hemp should be lightly touched. To this, it was replied by Mr. Madison, that if it were politic to make the United States independent of the world for cordage, they ought also to be made independent for the raw material, which could be cultivated to advantage in the west, if the husbandman were sufficiently protected. The duty CHAP. III. 1st Session. National Revenue-Imposts, and Tonnage Duties. 1st Congress. Was opposed on this and the following day, by Mr. Boudinot, Mr. Partridge, Mr. Lawrance, Mr. Ames, Mr. Fitzsimons, Mr. Hartley, and was defended by Mr. Moore, Mr. Scott, Mr. White, and Mr. Goodhue. It was conceded, however, by the opponents of the measure, that a low duty should, for the sake of conciliation, be 40 cents imposed; and Mr. Partridge moved 40 cents, as about equal to an ad valorem of five per cent. Mr. White, (from Virginia,) moved 75 cents 75 cents. Mr. Smith, of Maryland, was willing to take 40 cents, if the committee would make it 100 cents at the end of two 50 cents years. Mr. Madison thought 75 cents too high, and moved 50 agreed to. cents, which was agreed to. moved. moved. bushel. Barley and lime. Malt 10 On the article of malt, ten cents a bushel was laid. It was cents per stated by Mr. Fitzsimons, that the recent importations of this article amount to 30,000 bushels in one year. Barley was then taxed six cents, and lime ten cents per bushel, on motion of Mr. Ames, who said these articles were imported in considerable quantities from a neighbouring state, that had not yet adopted the Constitution. Nails and spikes. Salt 6 cents. 1789. Lloyd's Con. Reg., vol. i. p. 80, 81. Id. p. 81. It was moved by Mr. Lee to strike out the items of nails, Id. p. 82. spikes, tacks, and brads; and, after discussion, nails and spikes were taxed one cent per lb., and tacks and brads were struck out. 93. The policy of a duty on salt was discussed during the 16th and Id. p. 8317th, and finally 6 cents was agreed to, with a drawback on salted provisions and fish. It was stated, in debate, by Mr. Burke, that South Carolina and Georgia would be heavily oppressed by a duty on this article. The people in the back parts of these states, had to haul their salt, two, three, and four hundred miles in wagons, paying 7s. 6d. sterling, in addition to the first cost of one shilling. Mr. Scott stated that from the nearest point on the Atlantic where salt could be obtained, to the next nearest in the western country was 800 or 1000 miles, and it was carried across the mountains on pack-horses. Mr. Moore considered the tax unpopular and unjust; and Mr. Smith, of South Carolina, intimated that the inhabitants of the state were already opposed to the new government, and ought not to be still further alienated. Mr. Lawrance estimated the consumption of salt as averaging three bushels for a family; but, in those parts where it was difficult to be obtained, it was used with more frugality than where it was abundant; the poor also used it more sparingly than the rich, while the latter must supply all their dependants; so that the tax would be less unequal and oppressive in its operation than gentlemen seemed to imagine. Mr. Madison advocated a mode |