Imágenes de páginas
PDF
EPUB
[blocks in formation]

than the American people have been for the eight or ten years previous to the year 1808. Private fortunes have been accumulated with unequalled ease and rapidity; commerce has prospered beyond example; agriculture has flourished; hed; and the revenue al abundant, beyond the wants of the Government. And did this state of prosperity exist at a time when your commerce was protected by vessels of war? No; but at a time when your Navy was out of use; and in proportion to the increase of your naval expenditure, in the same proportion has your commerce decreased. The protection of commerce is the only ostensible object for which navies are created, while power and conquest are the main objects. Show me, said Mr. McK., a nation possessed of a large navy, and I will show you a nation always at war. When has England been at peace with all the world, since she became a great naval Power? Such instances in British history were so rare, and of such short duration, (if they existed at all,) that he could not answer the question; and he believed it would be difficult for the ingenuity of the gentleman from South Carolina (Mr. CHEVES) to answer it. It is true, that England, the greatest naval Power in the world, is also the most commercial; and it was not to be doubted that her commerce received aid from her navy, though it owed its extent principally to the industry and consequent wealth of the nation. But, England has other and far more important objects to effect by her navy than that of protecting commerce. Her insular situation renders it necessary for her protection, and she keeps it up for the purposes of war and domin

ion. England would destroy her navy to-morrow,

if the protection of commerce was her only object; because it cannot be denied that the expense of keeping up her navy exceeds the profits of that commerce which it is said to protect. Navies, therefore, must be considered as instruments of power, rather than as the means of protecting commerce. They are the vile offspring of those nations where the power and grandeur of the Government is everything, and the people are nothing

but slaves!

Mr. McK. having stated that a navy was an

instrument of power, rather than a means of protecting commerce, order to show that this opinion was not a mere vagary of his own imagination, but the deliberate opinion of some of the wisest men of this country, most solemnly pronounced, he would beg leave to read a document, which he hoped would have weight with some gentlemen of the Committee. It is taken from the celebrated instructions of the Virginia Legislature, of 1801, to their Senators in Congress, and is said to have come from the pen of the present Chief Magistrate of the United States; and he believed he could venture to say, that no Legislature ever possessed more talents than were drawn together into the Virginia Assembly on that occasion. After having noticed other subjects, in speaking of the Navy, they say:

"With respect to the Navy, it may be proper to remind you, that, whatever may be the proposed object of its establishment, or whatever may be the prospect

H. OF R.

of temporary advantages resulting therefrom, it is demonstrated by the experience of all nations who have ventured far into naval policy, that such prospect is ultimately delusive; and that a navy has ever, in practice, been known more as an instrument of power, a source of expense, and an occasion of collisions and wars with other nations, than as an instrument of defence, of economy, or of protection to commerce. Nor is there any nation, in the judgment of the General

Assembly, to whose circumstances this remark is more applicable than to the United States."

These opinions may now, however, he considered as old-fashioned; but being himself an oldfashioned man, he confessed he was more pleased with them than with the new political doctrines preached by the gentleman from South Carolina (Mr. CHEVES) to the House and the nation. It might, however, possibly be the fact, that he (Mr. McK.) was wrong, and only indulged ancient prejudices, and the gentleman from South Carolina right; and if such were the case, he could only say, in his own defence, that, under the influence of those old doctrines, the American people had enjoyed a state of prosperity and happiness unparalleled in the history of man-a state of prosperity which he feared he would never see equalled. He looked back on those days of happy prosperity with the same feelings of mournful regret with which he looked back to the days of his youth, fearing that they, like the days of his youth, would never again return-especially if the Navy mania should prevail.

Another great objection to a navy with Mr. McK. was, that a great proportion of the expense would fall on the agricultural class of the people,

and the advantages (if any) to be derived from be derived by the mercantile class. The State of the protection afforded by it to commerce, would Ohio, for instance, will pay within one-third as much tax as the State of Maryland or South Carolina, and nearly as much as Connecticut, with less than one-tenth of the commerce to receive

protection. Is it, therefore, reasonable or just to
and support a navy for the protection of com
tax that portion of the people in order to create

merce, when they have none, or but little, to pro-
tect? But, it is
and manufacturers throughout the Union will pay
also that the agriculturists
a large proportion of the expense of creating and
supporting a navy-perhaps nine-tenths thereof-
while the mercantile class will receive the great-
est share of the advantages. As a further illus-
tration of this subject, he would refer gentlemen
to an argument of Mr. Gallatin, made in 1799, on
the establishment of a navy, in which this point
was clearly demonstrated, with an ability that
defied refutation, even by the ingenuity of the
gentleman from South Carolina.

Why, said Mr. McK., is this period fixed on for commencing this great Naval Establishment ? And why was it not commenced when our finances were in a more flourishing condition at a time when the means necessary to effect the object were possessed by the Government? Would any man say that the vessels proposed to be built could be furnished in time to be serviceable in the ap

1

:

1

:

H. oF R.

Naval Establishment.

JANUARY, 1812.

proaching contest? He believed no man would await their exertions. They are, therefore, in

hazard his reputation by such an assertion, unless
the war should continue longer than was expected.
It would appear as if gentlemen were disposed to
take advantage of the fever of the public mind-
when the people were indignant at the conduct
of Great Britain, and determined to have redress
almost without counting the cost; and when they
are most likely to examine subjects of this sort
with the least deliberation, we are called upon to
establish a permanent system which will remain a
set fast on the nation forever. All history proves
that it is in such times that the most pernicious
and ruinous principles are established, and we
seem disposed to follow the example. If we are
to become a great naval power, let us commence
the system in times of peace and tranquillity, when
the expression of public sentiment in relation to
it can be fairly and dispassionately had.

terested in keeping up a state of war, and being invested with the management of an instrument of war, it is to be expected, that it will be used in some degree to answer their own purposes? No man who will reflect for a moment, but must be satisfied that the disgraceful and lawless conduct of the British naval officers on our coast origi nated in a desire on their part to bring on a war with this country, in which they looked forward to large dividends of prize money; and these acts were contrary to the wish and expectation of Great Britain; in one instance the act was disavowed; and it may be asked why were the officers not punished who acted contrary to the wishes of the Government? The answer is obvious; because the influence of the Navy in England is so predominant that the Government are afraid to touch the subject, and the consequence is, that the Government are compelled to bear the odium of acts which they disapprove; and the same

But, the gentleman from South Carolina (Mr.
CHEVES) says, that our Ministers abroad are placed
in a very delicate and unpleasant situation, because which has produced this effect in England,

cause our Navy is not sufficient to command the
respect of foreign Powers. So long, said Mr. McK.,
as we maintain our character at home-so long
as we preserve our title to character abroad; and
so long as the people are industrious and happy-
it was to him a matter of but small concern whe-
ther a Turkish Bashaw or a potentate of Europe
respected us or not. If our friendship was desir-
able to them, it would be courted; if it was not,
we could not fight them into it by twenty-five
seventy-four gun ships and forty frigates. But,
if it were an object of primary importance with
the gentleman to render this nation respectable in
the eyes of foreign nations, his object perhaps
could be more easily effected by assimilating our
form of Government more to the forms of the Gov-
ernments of Europe-by making the Presidency
hereditary, creating some Princes and Princesses,
Dukes and Duchesses, Lords and Ladies, Stars
and Garters. The gentleman will then, perhaps,
no longer be told that we are without honor and
just political views by the monarchies of the Old
World.

[Mr. CHEVES said, he would not accept the gen-
tleman's project.]

Mr. MCKEE said, he did not wish him to accept it, neither would he accept that gentleman's naval project, because the consequences to the country, in his opinion, would be similar. Create a great national debt, impoverish one portion of the community with heavy taxes, by which a different portion of the community are benefited, and you have the foundation of a moneyed aristocracy, which is the substance which will, by its own operation, create substantially those distinctions in society which in other Governments have

names.

if permitted to operate, will produce a similar ef-
fect in this country.

Our little Navy has already contributed much towards the irritation, which exists between this country and England; and under any other President than Mr. Jefferson, it would have brought on a war in 1807. And what real benefit has resulted from it to the Government? Has a piearoon or a buccaneer ever been chastised by them? If they have, he had no recollection of the case; he had seen indeed paragraphs in the newspapers mentioning that the frigate President, or some one of the vessels, had sailed from the navy yard to Norfolk, from thence to New York, and finally arrived safe at Boston; but for what purpose he was totally ignorant, unless, indeed, it was to sail back again, and furnish the materials for a new article for the newspapers; and for these eminent services, the American people have already paid about $30,000,000.

not man

If, said Mr. McK., your twelve seventy-fours and twenty frigates were built, you could them, without resorting to impressment. And the argument of the gentleman from South Carolina (Mr. CHEVES) seems to admit this fact; because he summons the whole force of his ingenuity to prove, first, that you can in time of war, by law, prevent your seamen from engaging on board of privateers, beyond a certain number, and second, that if this expedient should fail, you can man your ships of war with militia. This, said Mr. McK. is a monstrous doctrine, and amounts substantially to the doctrine of impressment, which is a perversion even of the British constitution. Whence do you derive the power of prohibiting your mariners from engaging on board of privateers, and thus by starvation forcing them

Establish a navy, said Mr. McK. and this coun- to engage in your service? No such power is try may bid farewell to peace; because you there- known in the Constitution, and any attempt to by organize a class of society who are interested exercise it (if you possessed the power) would in creating and keeping up wars and contention. only excite irritation. With regard to marching Officers in the Navy and Army are mere cyphers the militia on board of your ships, or out of the in society in times of peace, and are only respect- United States, Mr. McK. said, he had been at a able in time of war, when wealth and fame may loss to know why the gentleman from South Car

[merged small][ocr errors][merged small][merged small][merged small][merged small][ocr errors][merged small]
[blocks in formation]

olina (Mr. CHEVES) had ushered into this House a discussion on that point when the volunteer bill was under consideration; because it seemed to him that this question, as it related to the volunteer bill, was (as a lawyer would say) de hors the record; but the matter is now fully explained.

[Mr. CHEVES said that he had not ushered this discussion into the House, but that the question was forced on him by other gentlemen, who had raised the difficulty.]

Mr. MCKEE Said, he had been led into the error by the circumstance that the gentleman from South Carolina first within his hearing

H. OF R.

to the Government the power of marching the militia out of the United States, and we ought not to invest ourselves with the power by implication or construction.

Mr. McK. apologized for detaining the Committee so long. He hoped gentlemen would consider well the subject before they gave a vote which may not only affect the present generation, but. extend its effects to future generations.

The Committee rose, and had leave to sit again.

MONDAY, January 20.

Mr. MITCHILL presented the petition of Charles

Whitelow, of the city of New York, praying for

opened the discussion on this point in the House, and he had therefore supposed it had originated permission to occupy a tract of ground lying west with him. That gentleman had, however, contended, that the militia could be marched out of of the Capitol in the City of Washington, (origithe United States, and now holds the opinion, nally intended for a botanic garden,) for the puras an agricultural and bo

that in the last resort, your ships may be manned

by the same means. No such power is known in the Constitution. You have the power of calling out the militia for three specified objects, to wit: "To execute the laws of the Union, suppress insurrections, and repel invasions." This specifica

tion of the objects for which the militia may be called out, operates as a limitation of the power; no rule of construction is more universal or liable to

fewer exceptions in law or reason, than that a grant of power, accompanied with a specification of the objects to which the power is to be applied, is, in its nature, a limitation of the power to those objects alone; and in this case the power of calling out the militia is limited to those objects and for those purposes which of all others the militia are the best adapted to effect, and for the effectuation of which, it is the most natural that the militia would be resorted to.

[The Chairman, Mr. NELSON, asked Mr. MCKEE - if he thought the remarks in relation to marching the militia out of the United States were applicable to the question before the committee?]

Mr. MCKEE said, unquestionably he did believe them applicable; because he contended, that the ships, if built, could not be manned, unless by the militia; and if he showed they could not be manned by the militia, he thereby proved that the ships ought not to be built.

When the Constitution of the United States

pose of improving it

tanical garden; stating his experience in business of this kind in Europe. Referred to the Committee on the District of Columbia.

Mr. JENNINGS presented a representation of sundry inhabitants of the Indiana Territory, com

plaining of the arbitrary conduct of the Governor of that Territory, in withholding his approbation to an act passed by the Legislature, for the removal of the seat of the Territorial Government, and praying redress.-Referred.

INCREASE OF REVENUE..

Mr. BACON observed that the Committee of Ways and Means had received a letter from the Secretary of the Treasury, in answer to an inquiry addressed to him by the committee, which they deemed of public importance; and therefore, contrary to their usual practice, the committee had directed him to communicate it to the House, in order that it might be printed for the use of the members, as it might be some time before the committee would be able to make their report, and by having the letter of the Secretary of Treasury before them, and their attention drawn to the subject, the House would be better able to meet the consideration of it, when it shall be brought before them by the committee. Mr. B. then laid the letter of the Chairman of the committee to the Secretary of the Treasury with his answer (containing his budget of profore the House; which being read,

was submitted to the consideration of the Amer-posed taxes for meeting the expenses of war) be

ican people, and every objection which the ingenuity of party rage could invent was raised against its ratification or adoption, yet it never occurred to any one that the militia could be marched out of the United States; and if the history of those times is looked into, it will be found that the power of marching the militia of Georgia to New Hampshire, and the militia of Maine to Georgia, was the subject of serious complaint on the part of the opposers of the Constitution, and when such objections were raised, it is evident that if ever the thought of marching the militia out of the United States had occurred, or had been

Mr. MOSELEY proposed that five thousand copies of the communication should be printed. This motion was seconded by Mr. MILNOR, who, on account of its importance, contended for the necessity of making it as public as possible. It was opposed by Mr. BACON, as improper and as incurring an unnecessary expense. Improper, because it would be giving an undue sanction to a letter to one of the committees of the House, which had not been acted upon, (and which it was unusual to publish at all;) incurring an unnecessary expense, because the letter of the Sec

supposed to have been contained in the instru-retary would undoubtedly be printed in every ment, it never would have been ratified. It there- newspaper in the United States, and by this means fore seemed to him clear, that it was not the in- be made more generally public, than it would be tention of the framers of the Constitution to grant in any other way.-Motion negatived 75 to 42.

[blocks in formation]
[blocks in formation]

Mr. DAVENPORT moved to have five hundred copies printed, which motion was also negatived, and the usual number ordered to be printed.

The Letter and Answer are as follows:

COMMITTEE ROOM, December 9, 1811.

SIR: In your annual report, prepared in obedience to the act supplementary to the act, entitled "An act to establish the Treasury Department," and transmit ted to the House of Representatives on the 22d ultimo, it is stated,

1st. That, to place the financial system of the United States on a solid foundation, it requires the aid of a revenue, sufficient at least, to defray the ordinary expenses of Government, and to pay the interest on the public debt, including that on new loans which may be authorized.

That the expenses of the year 1812, calculated on the
existing state of affairs, and including the interest
on the public debt, will amount to $9,400,000,00
That the whole amount of actual receipts
into the Treasury, during the year
1812, may be estimated at

[blocks in formation]

8,200,000 00

- 1,200,000 00

2,135,318 41

$3,335,318 41

Under this view of the subject, the Committee of Ways and Means instructed me to inquire of you, whether, according to the principle first above stated, it does not become necessary to provide " a fixed revenue," to be received during the year 1812, equal as well to the estimated expense of that year, and amounting, as above stated, to $9,400,000, as also to the interest which will arise on the proposed loan of $1,200,000; or, otherwise, whether it is proposed to provide for the payment of such interest out of the money of the Treasury at the commencement of the year, or from any

other source ?

2d. It is stated in your report, "that a fixed revenue of about nine millions of dollars is necessary, under the existing circumstances of the United States; and that the same amount would be necessary, and, with the aid of loans, will, in your opinion, be sufficient, in

case of war."

In reference to this state of things, the Committee wish you to state, whether, as, in the event of war, increased loans will undoubtedly be required, it will be necessary to provide an additional and gradually increasing revenue, to pay the interest on such loans ?

JANUARY, 1812.

3d. It is stated in your report, " that the permanent revenue, or annual receipts, after the year 1812, (calculated on the existing state of affairs,) together with an addition of fifty per cent. on the present amount of duties, may be estimated at nine millions of dollars; and that, should any deficiency arise, in the event of war, it may be supplied, without difficulty, by a further increase of duties, by a restoration of that and

by a proper selection of moderate internal taxes."

The Committee request that you would favor them with the best opinion which you are able to form (calculated on the event of war) of the probable amount of the receipts from duties; a specification of the increase of duties which you would think practicable and advisable; an estimate of the amount of that on salt; and such a selection of moderate internal taxes as you would reccommend, with the probable expense of collection, and the amount of net revenue estimated to

arise therefrom.

4th. The Committee request that you would furnish them, in connexion with your replies to the preceding inquiries, with an estimate of ways and means, (calculated on the event of war,) which will provide a revenue sufficient to meet the ordinary expenses of Gorernment, and provide for the legal reimbursement and interest of the public debt, including the interest on new loans, to the amount at least of ten millions of dollars per annum, accompanied with such a scheme for the reimbursement of the principal of the new loans as you should deem expedient, together with such opinions as you may have formed respecting the terms on which such loans may probably be obtained; also, such further views or information, connected with, ot touching the foregoing objects of inquiry, as you may deem necessary and expedient.

With great respect, I have the honor to be, your
obedient servant,
E. BACON.

Hon. ALBERT GALLATIN, Sec. Treasury.

TREASURY DEPARTMENT, Jan. 10, 1812.

SIR: In answer to the first inquiry of the Commit tee of Ways and Means, relative to the interest arising on the proposed loan of $1,200,000, necessary to supply the deficiency in the receipts of the year 1812, I beg leave to observe that that item was not included amongst the expenses of that year, because, the esti mate being made with reference to the expenses alone which had previously been authorized by law, and a considerable proportion of those on account of the public debt falling on the last day of the year, it would not have been necessary, in that view of the subject, to borrow that sum previous to that day, and the interest would not, therefore, have become a charge till the year 1813.

With respect to the second inquiry of the Commit tee, it was certainly contemplated, in conformity with the recommendation of the President, whose expressions were adopted in the report, " to raise a revenue sufficient, at least, to defray the ordinary expenses of Government, and to pay the interest on the public debt, including that on new loans which may be authorized." The sum of about nine millions of dollars was assumed as answering that description for the present, and the expression of "fixed revenue, which had been used in reference to existing circumstances, It will was inadvertently applied to the case of war. undoubtedly be proper, as remarked by the Committee, to provide, annually, an additional and gradually in. creasing revenue, sufficient to pay the interest on the

[ocr errors][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small]
[blocks in formation]

loans required in the event of war. If, therefore, the loan for the present year will, according to the suggestion of the Committee, amount to ten millions of dollars, the receipts into the Treasury, to be provided for the year 1813, should on those data, amount to about nine millions six hundred thousand dollars.

The Committee ask, in the next place, the best opinion which I am able to form of the probable amount of receipts from duties on merchandise, in the event of war.

As that amount will depend on the extent of the commerce between the United States and nations at peace with them, and on the numbers of the captures respectively made by our own privateers, and by the enemy, it is a matter of conjecture, and not a subject of calculation; for which reason it was stated in the report, that that amount could not at present be determined. Considering the restrictions laid by France on the commerce of the United States, with her own dominions and other countries under her influence, the dangers to which our commerce with the Baltic and with China will be exposed, the relations of England with Portugal and with Spain, and also that no inconsiderable part of the captures made by our privateers will be sent into foreign ports, a great defalcation in the receipts on duties on imported merchandise must be expected. The amount, under existing laws and circumstances, has, from correct data, been stated in the annual report at six millions of dollars. It would, in my opinion, be unsafe, in an estimate of ways and means, intended to be relied on with certainty, to calculate, in the event of a war, on more than two million five hundred thousand dollars, at the present rate of duties."

To the next inquiry of the Committee, respecting the increase of those duties which is thought practicable and advisable, it is answered, without hesitation, thal the rate of duties may, in the event of war, be doubled, without danger or inconvenience. There will, in such event, be less danger of smuggling, at that rate, than there is now, with the existing duties. With that increase, the duties will still be much less, on an average, than those paid on importations in England, France, and most other countries. And they will be collected with more ease to Government, and less inconvenience to the people, than could be devised, to the same amount, in any other manner. A duty on imported salt might now be calculated on at least three million five hundred thousand bushels; but, in time of war, cannot be estimated on more than two millions of bushels, producing, at the rate of twenty cents per bushel, four hundred thousand dollars. The duties on tonnage and imported merchandise, including the former duty on salt, and doubling the rate of all the others, would, according to that esti

mate, amount to

To which, adding the proceeds of the sales of public lands, estimated, as by the annual report, at

: :

Makes an aggregate of And leaves a deficiency of

In order to complete the net revenue, wanted for the service of 1813, of

$5,400,000

600,000

$9,600,000

H. oF R.

ing the expenses already voted by Congress, is not more than will be wanted, and estimating at the lowest rate the interest on the loan of 1813, the deficiency for 1814, to be provided for by other sources, will amount to four million two hundred thousand dollars. The expenses of assessment and collection, and incidental losses, on the internal taxes, from the proceeds of which this deficiency must be supplied, may be estimated at fifteen per cent. In order to produce a net revenue of four million two hundred thousand dollars, the gross amount of taxes must therefore be near five millions of dollars. As the taxes, which may be organized during the present session of Congress, will not become due till the ensuing year, and as it is sufficiently ascertained, from'universal experience, that taxes will not produce their full nominal amount the first year they are in operation, it may be relied on that a gross amount of five millions, intended to produce a net revenue of four million two hundred thousand dollars, will not yield that sum till the year 1814, nor produce, in 1813, more than the required sum of three million six hundred thousand dollars. Five millions of dollars will, therefore, be assumed as the gross amount of taxes (including the expenses of assessment and collection, and the incidental losses) necessary to be raised at this time. That sum is calculated to cover the interest on the loans of ten millions a year, wanted for the service of the years 1812 and 1813, leaving the selection of additional taxes, which may thereafter be necessary to provide for the interest of subsequent loans, to be made according to the experience which will be afforded by those two years.

Before I proceed to answer the inquiry of the committee, respecting a selection of the internal taxes now necessary, permit me to observe, that it was stated in the annual report of December 10, 1808, that "no internal taxes, either direct or indirect, were contemplated, even in the case of hostilities carried against the two great belligerent Powers" an assertion which renders it necessary to show that the prospect then held out was not deceptive, and why it has not been realized.

The balance in the Treasury amounted, at that time, to near fourteen millions of dollars; but, aware that that surplus would, in a short time, be expended, and having stated that the revenue was daily decreasing, it was, in the same report, proposed "that all the existing duties should be doubled on importations subsequent to the first day of January, 1809.". As the net revenues accrued from customs during the three years, 1809, 1810,. and 1811, has, without any increase of duties, exceeded twenty-six millions of dollars, it follows that, if the measure, then submitted, had been adopted, we should, after making a large deduction for any supposed diminution of consumption arising from the proposed increase, have had, at this time, about twenty millions of dollars on hand-a sum greater than the net amount of the proposed internal taxes for four years.

* In proportion as the ability to borrow is diminished, the necessity of resorting to taxation is increased. It

: 6,000,000 is, therefore, also proper to observe, that, at that time, 3,600,000 the subject of the renewal of the charter of the Bank of the United States had been referred by the Senate to the Secretary of the Treasury; nor had any symptom appeared, from which its absolute dissolution, without any substitute, could have then been anticipated. The On the basis of annual loans of ten millions of dol- renewal, in some shape, and on a more extensive scale, lars, during the continuance of the war, (which is the was confiently relied on; and, accordingly, in the resum assumed by the committee, and which, consider-port made during the same session, to the Senate, the

1

« AnteriorContinuar »