APRIL 1789.] Duties on Imports. [H. OF R. unmanufactured state, it will be sufficient to ob- | great a part was consumed by the citizens of serve, that as it is generally a substitute for the Union; a demand in one State so great as sugar, the consumers will therefore avoid the this, proved how likely it was for New Engtax on that article, and pay it on the other. In land rum to rival the West India. He thought Pennsylvania they mostly use sugar; now, if the prices of the two articles gave the country the people there pay a tax on that article, it is rum a very considerable advantage, and therebut distributive justice that the people of Mas- fore a duty of seven cents could not be very sachusetts pay one on the article they use for the injurious to the manufacture. same purpose. The question was put on seven cents and lost. And it was agreed to fill the blank with six cents. On filling up the blank on Madeira wine, Mr. HARTLEY moved thirty cents, in order (as he observed) to make it correspond with the rate per cent. on the value; as the principle of proportion seemed to be admitted by the committee. Mr. GOODHUE.-Fifteen cents, the sum laid on Jamaica spirits, is about one-third part of its value; now eight cents on molasses is considerably more the former is an article of luxury, as was observed when it was under consideration, therefore that duty might not be improper; but the latter cannot be said to partake of that quality in the substance, and when manufactured into rum, it is no more a luxury than Jamaica spirits. I cannot see, therefore, why molasses ought to be taxed forty or fifty per cent. when Mr. SHERMAN said, it appeared to him to be the other pays but thirty-three. Surely the pretty well proportioned; because those who substance ought not to pay at this rate-then accustomed themselves to drink wine, consumwhat good reason can be offered for the mea-ed two or three times as much as those who sure? used spirits, and &nsequently paid a due proportion. Mr. FITZSIMONS.-I shall move you, sir, that the blank be filled with fifty cents. I observed some gentlemen, in their arguments on the last article, laid great stress upon the impropriety of taxing the necessaries of life that were princi Mr. BOUDINOT had attended to the arguments of the gentlemen on both sides of the question, and was led to believe the proportion was not properly observed. By the resolution of Congress in 1783, the molasses was fixed apon due consideration at one penny, and West India rum at fourpence. The proposed propor-pally consumed by the poorer class of citizens. tion was two-thirds of what is charged on West India rum. He thought this too high, as it would be an encumbrance on a considerable manufacture; six cents were therefore a more equitable rate than eight cents were; he believed also, that it was as much as the article would bear, especially if it was considered that the whole of the article was not manufactured into ram, but a large proportion consumed in substance. This might also be near what is intended to be charged on sugar; by fixing it at this rate, the necessity of lowering the duty at some future day would be avoided, which he thought an object worthy of the committee's consideration. Mr. BOUDINOT wished the gentleman to consider the difference in the price; if he did that, he would allow it to be reduced to six cents; if this principle could now be fixed, it would carry them through the whole. I do not think any of the members of this committee consider the article of Madeira wine a necessary of life, at least to those whose incomes are only sufficient for a temperate subsistence; therefore no objection of this kind can be made on the present occasion. The propriety of a high tax on wines, I apprehend, is selfevident, whether we consider the price of the article, or the ability of the people to pay whc consume it. The value of a pipe of Madeira wine, I believe, is about two hundred dollars, a hogshead of rum is worth about forty dollars. The ability of those who consume the one and the other are, I suppose, in nearly the same ratio. I do not pretend to know what are the intentions of gentlemen on this subject, but my wish is, to raise so considerable a revenue from imposts as to render it unnecessary to apply to any other mode. If this be the wish of the committee also, they will be inclined to raise a great part of it from the consumption of those people who are best able to pay, among whom we may, with great propriety, reckon the con Mr. PARTRIDGE allowed, if all the molasses was distilled into rum, that a small duty might be proper; but when it was considered as an article of sustenance to the poor, and as a requi-sumers of Madeira wine. site to the support of the fisheries and navigation, he hoped the committee would allow but a very small one indeed. He wished it was possible to discriminate between what was manufactured into rum, and what was consumed in the raw state, because a higher duty might be collected in the former case than in the latter. Mr. P. MUHLENBERG thought his colleague's observations were very judicious, and said they met exactly his ideas; he therefore seconded the motion for fifty cents. Mr. BLAND.-I am not against laying any sum on this article which there is a probability of collecting; but I am afraid we are running wild in the business, and although we appear to Mr. FITZSIMONS stated, that there were be in search of revenue, we are pursuing a $27,000 gallons of rum imported into Pennsyl-track that will lead us wide of our mark. I vania in 1785, which would tend to show how am really suspicious, if we lay a duty of fifty H. OF R.] Duties on Imports. [APRIL, 1789. cents upon Madeira wine, we shall not have a Mr. FITZSIMONS withdrew his motion for fifty single gallon entered in any port of the United cents, and moved thirty-three and one-third States, and we shall fully verify to the world cents. the truth of an old maxim, that two and two, in finance, do not make four. I would therefore suggest to the committee, the propriety of considering well, whether they can, or cannot, collect the high duty proposed. If they are well convinced that it can be done, and will satisfy me only that there is a probability of its being the case, I shall cheerfully concur in the motion; but at present, I am of opinion we shall not be able to obtain any revenue whatsoever if the tax is laid so high. The question was put upon thirty-three and one-third cents as the highest sum, and agreed to, being twenty-one votes for it, and nineteen against it. The next article "on all other wines," presented itself in order for the consideration of the committeo. Mr. HEISTER observed, there were a great variety of wines included in that general expression, the prices of which were very different; some worth even more than Madeira, and others less; he submitted, therefore, to the committee the propriety of discriminating and taxing them according to their value. Mr. BOUDINOT acquiesced in the remark. Mr. FITZSIMONS did not think it worth while, at this time, to engage the committee in making such a discrimination. The rich wines were imported in no very considerable quantities, and if the duty was laid pretty high, it would tend to exclude the most inferior and low wines from being introduced. It was thereupon agreed to lay twenty cents on all other wines. The next article on the list was "bohea tea," on which Mr. BOUDINOT.-I agree entirely with the principle of laying duties according to their relative value, and hope the committee will keep up the line of proportion as near as possible. It is only in the application of this principle on the present occasion, that I differ with the honorable gentleman from Pennsylvania, for whose opinions I have the highest respect. I confess, too, that he is much better able to ascertain the price of foreign articles than I am; but I believe, with regard to this one of Madeira wine, I have it in my power to ascertain it pretty well. I take it, that a pipe of wine usually costs at Madeira from twenty-five to thirty pounds sterling; but then I would wish the committee to take into consideration that Mr. FITZSIMONS observed, that he meant this this wine is paid for there in our own produce article not only as a revenue, but as a regulaat a very advantageous rate, which reduces the tion of a commerce highly advantageous to the nominal sterling sum down in value to a like United States. The merchants of this country sum of our currency. I therefore look upon it, have, from a variety of circumstances, and findthat we may calculate the cost of a gallon of ing their trade restrained and embarrassed, Madeira wine at one dollar; for I cannot con- been under the necessity of exploring channels ceive that any gentleman entertains an idea of to which they were heretofore unaccustomed. taxing the risk the merchant runs in importing At length they have succeeded in discovering the wine, or the increased value it obtains dur- one that bids fair to increase our national iming the time it takes to ripen for sale. In laying portance and prosperity, while at the same time our duties we ought to apportion it to the value it is lucrative to the persons engaged in its proof the article at the time and place of importa-secution. I mean, sir, the trade to China and tion, without taking advantage of such adventi- the East Indies. I have no doubt but what it tious circumstances. Beside, there is a considerable loss attends keeping Madeira. The storage is no inconsiderable expense, and the evaporation is an actual loss in quantity, which the merchant is obliged to replace by filling up the cask. Under these considerations, I think it may be admitted, that twenty or twenty-five cents per gallon is a sufficient tax. Moreover, it may be easily demonstrated, that such a duty would be more productive than fifty cents; because it would be with greater certainty collected. There is another reason that induces me to think twenty cents more proper; fifty cents for a gallon of wine is a large sum for a merchant to lay down in duties; it must abridge his mercantile operations, and consequently tend to discourage the Madeira trade, which, in my humble opinion, is one of the most advantageous America has left to her, from the selfish policy that actuates some foreign Powers; therefore we ought not to burthen it to so great a degree as the proposed duty seems to have in contemplation. will receive the encouragement of the Federal Government for some time to come. There is scarcely any direct intercourse of this nature, but what requires some assistance in the beginning; it is peculiarly necessary in our case, from the jealousy subsisting in Europe of this infant branch of commerce. It has been thought proper, under some of the State governments, to foster and protect a direct communication with India. I hope the Government of the United States has an equal disposition to give this trade their encouragement. I wish, therefore, the committee would pass over the article for the present, and permit it to come in at another place in the list, where I mean to move a discrimination in the duty on teas, according as they are imported, directly from China in our own ships, or in any ships from Europe. The articles of teas and pepper were passed over for the present. Mr. BOUDINOT proposed one cent per pound on sugar. Two cents were afterwards proposed, when Mr. FITZSIMONS remarked, that one gallon of molasses weighed eight pounds; that at six cents it did not pay a cent per pound; could it, therefore, be called anywise equal to such a tax on sugar? Moreover, sugar is an article of as general consumption as molasses, and when it is of this inferior quality, it enters as much or more into the consumption of the poor as the other, while, at the same time, molasses will sweeten more, according to its weight, than even the best sugar; from which considerations, I think gentlemen will be satisfied by putting it on an equality with molasses; therefore I do not oppose the one cent. On the question, the committee agreed to tax it but one cent per pound, and loaf sugar three cents per pound. All other sugars one and a half cent per pound. On coffee two and a half cents per pound. On motion of Mr. BLAND, the committee rose and reported progress. Adjourned. WEDNESDAY, April 15. A petition of David Ramsay, of the State of South Carolina, was presented to the House and read, setting forth that Mr. William Smith, a member returned to serve in this House as one of the representatives for the State of South Carolina, was, at the time of his election, ineligible thereto, and came within the disqualification of the third paragraph of the constitution, which declares, "that no person shall be a representative who shall not have been seven years a citizen of the United States," and praying that these allegations may be inquired by the House. Referred to the Committee on Elections. Mr. BENSON, from the committee to whom it was referred to consider of and report to the House respecting the ceremonial of receiving the President, and to whom was also referred a letter from the Chairman of a Committee of the Senate to the SPEAKER, communicating an instruction from that House to a committee thereof, to report if any, and what, arrangements are necessary for the reception of the President, made the following report: "That Mr. Osgood, the proprietor of the house lately occupied by the President of Congress, be requested to put the same, and the furniture therein, in proper condition for the residence and use of the President of the United States, to provide for his temporary accommodation. [H. OF R. resentatives, to be appointed by the Houses respectively, wait on the Vice President of the United States, as soon as he shall come to this city, and, in the name of the Congress of the United States, congratulate him on his arrival." And a committee of five was balloted for and chosen accordingly, for the purpose of waiting on the President. Another committee of three was appointed to wait on the Vice President. Duties on Imports. The House again resolved itself into a Committee of the Whole on the state of the Union, Mr. PAGE in the chair; the question being on inserting, in the list of dutiable articles, beer, ale, and porter— Mr. FITZSIMONS meant to make an alteration in this article, by distinguishing beer, ale, and porter, imported in casks, from what was imported in bottles. He thought this manufacture one highly deserving of encouragement. If the morals of the people were to be improved by what entered into their diet, it would be prudent in the national Legislature to encourage the manufacture of malt liquors. The small protecting duties laid in Pennsylvania had a great effect towards the establishment of breweries; they no longer imported this article, but, on the contrary, exported considerable quantities, and, in two or three years, with the fostering aid of Government, would be able to furnish enough for the whole consumption of the United States. He moved nine cents per gallon. He Mr. LAWRENCE seconded the motion. would have this duty so high as to give a decided preference to American beer; it would tend also to encourage agriculture, because the malt and hops consumed in the manufacture were the produce of our own grounds. Mr. SMITH (of Maryland) was opposed to such high duties as seemed to be in the contemplation of some members of the committee. He thought enough might be raised if the tax was lowered. He formed this opinion from some calculations he had made with respect to the imports at Baltimore. He stated them to amount for the last year, at the rate now proposed, to £258,163; to this, if he added five other districts in Maryland, the probable amount of which, on the same principle, would be £185,537; then, these two sums multiplied by twelve, the supposed proportion that Maryland ought to bear of the national debt, would produce £5,324,400, a sum exceeding very conThat it will be most eligible, in the first instance, siderably what the wants of the Union required. Eat a committee of three members from the Senate, Mr. GALE thought a duty of nine cents would and five from the House of Representatives, to be ap-operate as a prohibition upon the importation pointed by the Houses respectively, to attend to re- of beer and porter. He remarked the advanceive the President at such place as he shall embark tages which America possessed in growing malt from New Jersey for this city, and conduct him with- and hops for the manufacture of these articles. out form to the house lately occupied by the Presi- In addition to this, the risk and expense of deat of Congress, and that at such time thereafter, as the President shall signify it will be convenient for bringing it from Europe was to be considered. ha, he be formally received by both Houses. Upon the whole, he concluded so high a duty That a committee of two members from the as nine cents would give the brewers here a Senate, and three members from the House of Rep-monopoly, defeat the purpose of obtaining VOL L-3 H. OF R.] Duties on Imports. [APRIL, 1789. revenue, enhance the price to the consumer, and | quently there was no danger of its being imthereby establish the use of spirituous liquors. ported, unless the quality of the foreign beef For these considerations he was against that was superior. He would not object to gentlemen gratifying themselves with this meat, especially as the consumption was neither so great nor general as to affect the revenue, and therefore he judged it might be struck out. sum. Mr. SINNICKSON declared himself a friend to this manufacture, and thought if the duty was laid high enough to effect a prohibition, the manufacture would increase, and, of consequence, the price be lessened. He considered it of importance, inasmuch as the materials were produced in the country, and tended to advance the agricultural interest. Mr. TUCKER thought with the gentleman from Virginia, that the regulation was unnecessary, and that it would be better to throw it into the common mass, taxable at a certain rate per cent. He therefore moved to have it struck out. Upon these considerations the articles of beef, pork, and butter, were all struck out. Mr. FITZSIMONS moved to lay a duty of two cents on all candles of tallow per pound. Mr. TUCKER observed, that some States were Mr. MADISON moved to lay an impost of eight cents on all beer imported. He did not think this sum would give a monopoly, but hoped it would be such an encouragement as to induce the manufacture to take deep root in every State in the Union; in this case, it would produce the collateral good hinted at by the gen-under the necessity of importing considerable tleman from New Jersey, which, in his opinion, was an object well worthy of being attended to. He observed, that, in the State of New York, the article paid a duty equal to six cents on importation, and if brought in foreign vessels, it amounted to eight cents; and yet quantities of it were still imported, which proved that eight cents would not amount to a prohibition. The committee agreed hereupon to charge it at eight cents. On all beer, ale, or porter, imported in bottles, per dozen, twenty-five cents. Agreed to without debate. On every barrel of beef it was moved to lay a duty of a dollar per barrel. Mr. BLAND thought that very little revenue was likely to be collected on this article, let the duty be more or less; and as it was to be had in sufficient quantities within the United States, perhaps a tax amounting to a prohibition would be proper. Mr. THATCHER admitted that there was beef enough to be got in every part of the country, but it was fresh beef. Some States, from local circumstances, were unable to salt and preserve it, therefore a tax on this article would operate as a partial tax upon those States. If there is a sufficient quantity in the other States to answer their own consumption, they will feel no part of the burthen; but it appeared unnecessary to him to lay this restriction, because he found some States capable of exporting beef on terms as reasonably low as any other country could, and it could not, therefore, be contended for as a requisite encouragement to this branch of the agricultural interest. Mr. GOODHUE did not contend that it was necessary to lay a particular duty on beef, although it was among the enumerated articles admitted by the committee. He was satisfied of the fact, that meat could be put up here cheaper than in Europe, and afforded at a less price, so there was little to apprehend from rivalship. Mr. MADISON thought that almost every State in the Union had more of this article than was necessary for its own consumption, and conse quantities of this article also, while others had enough, and more than enough, for their own consumption, therefore the burthen would be partially borne by such States. As the committee had just rejected some articles upon this principle, he would move that this be struck out likewise. The Mr. FITZSIMONS.-I am not for striking out, sir. Every article imported into the State that gentleman represents, from which revenue is to be raised, he moves to have struck out; but I wish the committee to consider a moment before they join in sentiments with him. manufacture of candles is an important manufacture, and far advanced towards perfection. I have no doubt but, in a few years, we shall be able to furnish sufficient to supply the consumption of every part of the continent. In Pennsylvania we have a duty of two pence per pound, and under the operation of this small encouragement the manufacture has gained considerable strength. We no longer import candles from Ireland or England, of whom a few years ago we took considerable quantities; the necessity of continuing those encouragements which the State Legislatures have deemed proper, exists in a considerable degree; therefore it will be politic in the Government of the United States to continue such duties till their object is accomplished. Mr. TUCKER Would be glad to know what article it was that South Carolina would not contribute her full proportion of tax upon-he saw none; on the contrary, so far as the enumeration went, the impost would bear unequally upon her, and he feared many others in the list would increase the imposition. He thought it the duty of the committee to guard against an unequal distribution of the public burthen in every case, and therefore wished the duty on this article to be a moderate one; not because it affected the State he represented, for it did not do this to any degree, as wax candles were there principally consumed, the material for which was the production of the Southern States, but because other States, not having this advantage, might be oppressed. APRIL, 1789.] Duties on Imports. [H. OF R. Mr. BOUDINOT apprehended most States im- (Mr. TUCKER) to give a bounty on the imporported considerable quantities of this article tation. It was so materially connected with from Russia and Ireland; he expected they the improvement of agriculture and other manwould be made cheaper than they could be im-ufactures, that he questioned its propriety even ported, if a small encouragement was held out by the Government, as the materials were to be had in abundance in our country. Mr. LAWRENCE thought that if candles were an object of considerable importation, they ought to be taxed for the sake of obtaining revenue, and if they were not imported in considerable quantities, the burthen upon the consumer would be small, while it tended to cherish a valuable manufacture. He seconded Mr. FITZSIMON'S motion for two cents: which was carried in the affirmative upon the question being put. On all candles of wax or spermaceti, per lb. six cents; cheese, four cents; soap, two cents; boots, per pair, fifty cents; on all shoes, slippers, or goloshes made of leather, ten cents; on all shoes or slippers, made of silk or stuff, ten cents; on all steel unwrought, per 112 lbs., · - Mr. LEE moved to strike out this last article, observing that the consumption of steel was very great, and essentially necessary to agricultural improvements. He did not believe any gentleman would contend, that enough of this article to answer consumption could be fabricated in any part of the Union: hence it would operate as an oppressive, though indirect tax upon agriculture, and any tax, whether direct or indirect, upon this interest, at this juncture, would be unwise and impolitic. Mr. TUCKER joined the gentleman in his opinion, observing that it was impossible for some States to get it but by importation from foreign Countries. He conceived it more deserving a bounty to increase the quantity, than an impost which would lessen the consumption and make it dearer also. Mr. CLYMER replied, that the manufacture of steel in America was rather in its infancy; but as all the materials necessary to make it were the produce of almost every State in the Union, and as the manufacture was already established, and attended with considerable success, he deemed it prudent to emancipate our country from the manacles in which she was held by foreign manufactures. A furnace in Philadelphia, with a very small aid from the Legislature of Pennsylvania, made three hundred tons in two years, and now makes at the rate of two hundred and thirty tons annually, and with a little further encouragement would supply enough for the consumption of the Union. He hoped, therefore, gentlemen would be disposed, under these considerations, to extend a degree of patronage to a manufacture, which a moment's reflection would convince them was highly deserving protection. Mr. MADISON thought the object of selecting this article to be solely the encouragement of the manufacture, and not revenue, for on any other consideration it would be more proper, as observed by the gentleman from Carolina, on that score. A duty would tend to depress many mechanic arts in the proportion that it protected this; he thought it best to reserve this article to the non-enumerated ones, where it would be subject to a five per cent. ad. valorem. Mr. TUCKER considered the smallest tax on this article to be a burthen on agriculture, which ought to be considered an interest most deserving protection and encouragement; on this is our principal reliance, on it also our safety and happiness depend. When he considered the state of it in that part of the country which he represented on this floor, and in some other parts of the Union, he was really at a loss to imagine with what propriety any gentleman could propose a measure big with oppression, and tending to burthen particular States. The situation of South Carolina was melancholy; while the inhabitants were deeply in debt, the produce of the State was daily falling in price. Rice and indigo were become so low, as to be considered by many not objects worthy of cultivation; and gentlemen will consider, that it is not an easy thing for a planter to change his whole system of husbandry in a moment; but accumulated burthens will drive to this, and add to their embarrassments. He thought an impost of five per cent. as great an encouragement as ought to be granted, and would not oppose that being laid. He called upon gentlemen to exercise liberality and moderation in what they proposed, if they wished to give satisfaction and do justice to their constituents. Mr. FITZSIMONS thought, if gentlemen did not get rid of local considerations, the committee would make little progress. Every State will feel itself oppressed by a duty on particular articles, but when the whole system is perfected, the burthen will be equal on all. He did not desire, for his part, to obtain exclusive advantages for Pennsylvania; he would contend, and undertake to prove, that by the duties already agreed to, that State sacrificed as much as any other. Indeed, if he had said more, he believed himself capable of proving the position. Being of this opinion he hoped the committee would agree to grant her an advantage which would revert back upon the other parts of the Union, without operating even for the present, to the material disadvantage of any. Some States were, from local circumstances, better situated to carry on the manufacture than others, and would derive some little advantage on this account in the commencement of the business. The Eastern States were so situated, perhaps some of the Middle ones also; but will it therefore be insisted upon, that the Southern States pay more of the impost on foreign goods than these? For his part, he never could conceive, that the consumption of those articles by the negroes of South Carolina would contribute to the reve |