out the ruin of American excise revenues. What mischiefs have not excise laws produced in England? It has been found necessary to form a new set of laws, in which the British subjects have lost the protection of a trial by jury. Here Mr. S. read a passage on this subject from Blackstone, which is in these words:

[H. OF R.

was convinced that the excise on spirits was, upon the whole, of advantage to this country. For this reason, Mr. S. had submitted without reluctance to the ruin of his distillery, as from local causes, the excise had been ruinous to the distilleries of the Southern States. It was, taken all together, an advantageous measure, and he cheerfully submitted to his loss; but now he found they were to come back again upon him, and destroy his sugar

"All trials of offences and frauds, contrary to the laws of the excise, and other branches of the revenues, are to be inquired into, and determined by the Com-house, which he thought somewhat hard. Mr. S. missioners of the respective departments, or by Justices of the Peace in the country; officers, who are all of them appointed and removable at the discretion of the Crown. And though such convictions are absolutely necessary for the due collection of the public money, and are a species of mercy to the delinquents, who would be ruined by the expense and delay of frequent prosecutions by action or indictment; and though such has usually been the conduct of the Commissioners, as seldom, if ever, to afford just grounds to complain of oppression, yet, when we again consider the various and

may

almost innumerable branches of this revenue, which
be in their turns the subjects of fraud, or at least com-
plaints of fraud, and of course, the objects of this sum-
mary and arbitrary jurisdiction; we shall find that the
power of these officers of the Crown over the property
of the people, is increased to a very formidable height."
Mr. S. said, that he was not fond of troubling
the House with long quotations, but the present
came exactly to the point. A system of excise
was contrary to the spirit of the Constitution of a
free country, and in opposition to the Constitution
of the United States.

Mr. DAYTON declared, that he could not sit in silence to hear this sort of reasoning. Did the gentleman imagine that the present excise was to be imposed wantonly? Are we not in great necessity for money? There were but three objects of taxation, commerce, manufactures, and agriculture. The first had been pretty well burdened already. The luxuries of the second were now to be taxed; or, in other words, every man was to tax himself. He confided in the wisdom of the House, that this measure would pass. If this resolution were to be struck out, what shall we do next? Let us see another tax, and we shall choose between them. But no gentleman can show any expedient preferable to that before the Committtee.

here adverted to a mistake that he had made in a
former part of the debate. He had said, that it
required about three pounds of unrefined sugar to
make one pound of refined sugar.
This was a
mistake; the proportion of unrefined sugar was, he
believed, less than two pounds; though concerned
in the sugar baking, he knew nothing of it as a
profession. He never had set his foot twice with-
in his own house since he built it.

preceding speeches to this misstatement by Mr. S.
[Several members had adverted in the course of
SMITH.]

Mr. GOODHUE did not think that two cents per pound would destroy the sugar business.

Mr. NICHOLAS, having so lately trespassed on the patience of the Committee, had not intended to trouble them again. But the gentlemen who favored the excise system wanted to make it pass through the Committee with an eclat which it did not deserve. He expressed his aversion to excise in general, because it was, at best, from its essence, inseparably connected with vexation, the multiplication of oaths, of false informations for smuggling, and acquittances at an heavy expense from such accusations. The moment we begin an excise, that moment the mischief begins. The smallest modicum of this sort cannot be raised without oppression. Mr. N. adverted to the idea of making people not only pay taxes, but feel them. It was firmly his opinion, that direct taxes were the best, both as being the least expensive in the collection, and as tending more than any others, to keep the attention of the people strictly fixed on the way in which their money shall be expended.

Mr. FINDLEY spoke for a short time. Gentlemen might find a difficulty in answering arguments, and so call them repetitions, and declare Mr. S. SMITH.-Raise that seven and an half them not worthy an answer. But it was impossiper cent. of duty on wares and merchandise to ten ble to deny, that excise was inconsistent with perper cent.; that will do. But people who object to sonal liberty, and the spirit of the American a bad tax are not, therefore, obliged to find a bet-Constitution. Mr. FINDLEY went over several reter in its place. Any abuse whatever may be de- marks that have already occurred in the course of fended in this way. A gentleman from Massa- this discussion. chusetts [Mr. SEDGWICK] had said, that as there Mr. W. SMITH, observed, that the general queswere only seventeen sugar houses in the United tion of excise had been canvassed, a few days ago, States, it was so much the better. So by this rule, and therefore gentlemen employed their ingenuity it was no matter what degree of hardship was im- to very little purpose, in attacking what had been posed on the manufacturer, provided that a reve- so lately decided upon. If objections were to be nue could be got by it. To show the Committee made to every tax, and every sum of duty was to that he was not disposed to give wanton opposi- be left blank, what was the occasion for appointtion to taxes, Mr. S. informed them, that the ex-ing a select Committee of Ways and Means? One eise on spirits had put an end to a distillery which gentleman insisted upon striking out of this resohe had formerly set up. The building was now lying waste; and his whole expenses were cast away. But of this he had not complained at the time, and he did not complain now; because he

lution; another on the striking out of that resolution, till in short they would leave nothing at all. This proceeding reminded Mr. M. of a story in the fables of Phaedrus. A man, whose head was

H. or R.]

Public Credit.

[MAY, 1794.

posed on the importation of foreign commodities into this country, an addition of ten per cent. of extra duty shall be laid on all articles the growth or manufacture of Great Britain.

The next resolution is in these words:

"Resolved, That the sum of seven hundred and fifty thousand dollars be raised by direct tax, for the year one thousand seven hundred and ninety-four, to be apportioned among the States, agreeably to the rule prescribed by the Constitution:"

covered with black and gray hairs, had two female friends. One of them, who desired that he should have a youthful appearance, carefully pulled out some of his grey hairs, as often as he paid her a visit. The other lady, who wanted him to look like an old man, was industrious in pulling out the black hairs. Between their joint endeavors, he became bald. Thus, said Mr. M., by the time that every gentlemen has done with plucking, we shall have nothing of the report left. It was needless to make reports, if they were to be thus destroyed. A motion was then made by Mr. LYMAN for All the ways and means that had been yet pre- striking out this resolution. He observed, that this sented, if we lay the land tax out of them, are lit-resolution was supposed to contemplate a land tax. tle enough to serve for the appropriations already as, in the abstract of the report, it was called direct made. It is very easy to make plausible and in- taxes on land. This being the case, he should be genious objections to every thing. But plausible obliged, from not only a regard to his constituents, objections produced no money, which must be had, particularly, but in a general regard to the whole and had immediately, by some way or other. A Union, to make a motion to strike out the resolugentleman [Mr. S. SMITH] had said, that the seven tion. He said, that he had a different opinion on this and an half per cent. of impost should be raised subject from those gentlemen for whom he had to ten per cent. and that this would be a proper the highest respect, and whose opinions had, on compensation for laying aside the excise system. many occasions, fully coincided with his own. He That was indeed but a sandy foundation to build should not now take up the time of the Committee such an assertion upon. He adduced a variety of in reconciling this seeming inconsistency, otherwise other arguments to show the impropriety of this than by observing, that he supposed it must be scheme of objecting to every thing. He pressed owing to the variation of the tenure of lands in the Committee, in the most forcible and interest-the different States; that whilst in some States the ing manner, to consider what they were about, and what was to become of public credit, and national defence, if they refused to vote for the requisite supplies to maintain the one and the other. On dividing the Committee upon the foregoing motion of Mr. S. SMITH, for striking out the whole resolution, there were for the striking out 25 against the motion 35.

Mr. LYMAN voted for keeping in the resolution, but on this condition, that the sum should be left blank. He made a motion to this purpose.

Mr. SEDGWICK. If the sum of duty be struck out, it is impossible to determine what is to be the duty imposed on refined sugar imported from England. If the duty on importation to be too high, then by driving foreign sugars out of the market, we give the American sugar baker a monopoly against his customers at home. On the other hand, if we lay too little duty on the importation of foreign sugars, the foreign manufacture will undersell that of America.

The motion was withdrawn. The next resolution in the report was read, and is as follows:

"Resolved, That after the day of every person selling distilled spirits or wines, for consumption out of their own dwellings; distilled spirits in less quantity than twenty gallons; wines in less quantity than thirty gallons, except in the original cask or package in which they were imported, shall take out licenses to authorize the sale of such distilled spirits and wines, and shall pay, annually, for a license to sell all foreign distilled spirits,

five dollars; for a license to sell all wines, five dollars:"

The resolution passed the Committee.

Mr. CLARK then informed the Committee, that when they had got through the report, he had a motion in his hand, which he intended to lay before the House. He read this motion. The substance of it was, that, over and above all duties im

lands were pretty well distributed, and held in small parcels by those who cultivated them, in other States they were held in larger quantities and cultivated in a different way. A tax on them therefore, which in the one case might be considered unacceptable, would probably be less so in the other. However. speculative opinions in questions of this sort were but a feeble opposition to fact and experiment. To these he would pray the attention of the Committee. In this country, some of the States at least have made the experiment. It had proved oppressive, excited discontents, and even convulsed the Government. The experience of other countries did not furnish much more favorable arguments, if his recollection and information were correct, as he thought they were. In the Republic of Rome they never had a land tax. It had its odious origin under the tyranny of the Emperors. In France, they have no land tax. This, in that country, he was sensible, was complained of, but it must have been because the lands were held by the nobility, to whom it proved an exemption from the burdens of society, and from that cause the exemption was disagreeable to the people; but had the lands been of a different tenure there would have been no such complaint. How stood the case in England, a country where every species of taxation was carried to its utmost stretch? Their land tax was a mere trifle compared with their other impositions; and, trifling as it was, they embraced every occasion, when not pressed by particular exigencies, requiring the utmost exertions, to lessen it, from an apprehension of exciting uneasiness and tumult. Indeed he did not know but it might there be deemed a modified relic of their former slavish tenures. Under these impressions, and the consideration of the expense of collecting a tax of this sort, he hoped it would not now be resorted to. He supposed the Select

MAY, 1794.]

Public Credit.

[H. OF R,

Committee had made the report under apprehensions of more danger from abroad, than was said now to threaten us. We are now told that affairs abroad wear a more friendly aspect. He hoped it was the case; no one could wish more sincerely than he did, that it would prove so; but if it should not, neither he, nor any American would, he trust-published from the Public Treasury very fully ed, be averse to any species of taxation necessary to our defence and protection, and to give the fullest operation to our whole force. He did not forget, that, in discussing the business of ways and means, it had been said, that all taxation was objectionable, and that a motion for striking out any part of the sum necessary, ought to be accompanied with a succedaneum. He would therefore suggest increasing the impost duties, foreign tonnage, or even the excise duties. The impost on many articles was not nearly so high as it might well be made; the collection could be made with little additional expense, and with great certainty. There need be no new officers. Interest, policy, every motive conspired to abandon this tax on land, and embrace one more easy and convenient. He said, as little as he wished to see the public debt increased, and nobody had a less desire of such an event, yet he would sooner prefer a small loan for the possible deficiencies of the current year.

Mr. ScoTT rose. Mr. CLARK was up at the same time. The latter gentleman, observed, that he had been up some time before, but he was so small, that gentleman could not see him. He did not object to a land tax, considered as such, but he had a temporary objection. Did gentlemen consider in what time of the session they were? The Union consists of fifteen States all different in their laws, and in their local circumstances. The land tax was a matter of infinite difficulty, and would of itself require at least a month to discuss it. He therefore wished that it might lie over.

Mr. HEATH did not take up much of the time of the House in general. But he rose to say, that there were many expedients more palatable than a land tax. Why not lay a tax upon all kinds of shopkeepers? This project had formerly been very popular in Virginia. Why was the selling of wine, &c., taxed at so small a rate as five dollars?

LAS) that invisible taxes were dangerous. He could see nothing of that, in order to make people happy, it was necessary to have a goad in their sides. He could not imagine that American liberty must be in danger, unless American citizens are harassed by direct taxes. That the accounts showed the people in what way their money was expended, and the people had sagacity enough to know that whatever money came from the Treasury must be theirs. If they do not like the way in which they see it laid out, they will send to this place other men, who will do their business more to their satisfaction. He again adverted to there being no notice whatever of land in this resolution. [Mr. W. SMITH explained that there had been a mistake or omission of a word in printing the report.] Mr. ScoTT recommended a tax on the funds. All the countenance ever given to funding systems, in all the countries of the world, all the books that ever had been written about them, never could convince him that such a tax was unjust. He was firmly persuaded, that in the exigencies of a nation, all sorts of property should be taxed, because all sorts of property required to be defended. He was quite satisfied that all property should defend itself; that is, should pay for its own defence. He would cheerfully submit his own property to a general tax, were it even to half its value, if such an impost were necessary for the Independence of America.

Mr. NICHOLAS, Mr. CLARK, and Mr. SEDGWICK, spoke a few words.

The Committee rose without a division on the resolution. The Chairman reported progress, and the House adjourned.

TUESDAY, May 6.

The bill sent from the Senate, entitled "An act for the remission of the duties on eleven hogsheads of coffee, which have been destroyed by fire," was read twice, and committed.

The House proceeded to consider the amendments proposed by the Senate to the bill, entitled "An act directing a detachment from the Militia of the United States;" and, the same being read, were agreed to.

Mr. COFFIN, from the committee appointed, presented a bill supplementary to the act, entitled "An act to promote the progress of Useful Arts ;" which was read twice, and committed.

Mr. Scort then rose. He said that he was surprised at their calling this resolution a land-tax. He saw no such thing about it. It might be a polltax. He was informed, that it was mentioned in the preamble as a land-tax, but he was to look to A message from the Senate informed the House, the resolution itself, where he certainly saw no that the Senate have agreed to the resolution of such thing. A land-tax must be very unequal. this House, " To authorize the PRESIDENT to grant One man would pay as much for ten acres, as ano- clearances in the case of ships or vessels now loadther for a thousand. He recommended, in pre-ed, and bound to any port beyond the Cape of ference, a general tax on property; no matter Good Hope," with an amendment; to which they whether by land or water. The resolution spoke desire the concurrence of this House. of the Constitution. He knew no notice taken in The House proceeded to consider the said amendthe Constitution of any such matter. He con-ment, and, the same, being read, was disagreed to. sidered it as impracticable, without destroying the Mr. JEREMIAH WADSWORTH, from the managers

Constitution, and how it could be levied was be- appointed on the part of this House to attend the yond his comprehension. He did not concur with conference with the Senate, on the subject-matter some gentlemen for whom he had a great respect of the amendment depending between the two (referring perhaps to Mr. SMILIE and Mr. NICHO-Houses to the bill, entitled "An act to encourage

Clearances to certain Vessels-Public Credit.

the recruiting service," made a report; and, the same, being read, was, on the question put there-rect taxes," as given by a gentleman from Virupon, disagreed to by the House.

The House again resolved itself into a Committee of the Whole House on the report of the Committee appointed to inquire whether any, or what, further or other revenues are necessary for the support of public credit; and, if further revenues are necessary, to report the ways and means. The motion of Mr. LYMAN to strike out the clause relative to the land tax being under con-sonal property, and particularly if objects of lux

to the public exigencies, which was undoubtedly the case if the reasoning of gentlemen who opposed the resolution was well founded. If the imposition of a duty on pleasure carriages was a direct tax, it must then be apportioned; but, as several of the States had few or no carriages, no such apportionment could be made, and the duty of course could not be imposed. Such a construction was inadmissible, because it would exempt, in times of the greatest distress, the fairest objects of contribution from the imposition of any burden. If there was doubt, we certainly ought not to incline to that side, which at the same time it might compel the Legislature to impose grievous burdens on the poorest and most laborious part of the community, shall exempt the affluent from contributing for their objects of distinguishing enjoyments. This seemed not to carry into effect that doctrine of equality of which gentlemen said so much.

Mr. CLARK complained that members spent their time upon definitions, when business demanded an immediate decision. He objected to a proposal from Mr. SEDGWICK that the land tax should be agreed to, but should not take place until there was a prospect of war. He hinted want of time to discuss the question, and would have it laid aside for the present.

[H. OF R.

other taxes agreed to, if it was intended to be postponed in its operation. He said a land tax was a tax on the laborious poor. If every acre is to pay the same tax, it must prove very unequal, as poor men generally live on the poorest lands, and must pay oppressive taxes. If the lands are to be valued, the delay and expense must be enormous. Lands increase in value very unequally in different places, and the proportion will be forever altering. He had been told that two thousand persons had once been concerned in apportioning and collecting the land tax of Pennsylvania. He said a question had arisen as to the meaning of the words "direct taxes" in the Constitution. Before a determination be had for or against them, it ought to be known what is the true meaning of this phrase. He said his colleague [Mr. SEDGWICK] had stated the meaning of direct taxes to be a capitation tax, or a general tax on all the taxable property of the citizens; and that a gentleman from Virginia [Mr. NICHOLAS] thought the meaning was, that all taxes are direct which are paid by the citizen without being recompensed by the consumer; but that, where the tax was only advanced and repaid by the consumer, the tax was indirect. He thought that both opinions were just, and not inconsistent, though the gentlemen had differed about them. He thought that Mr. HILLHOUSE observed, that, laying a direct a general tax on all taxable property was a direct tax would doubtless be attended with many diffi- tax, because it was paid without being recomculties, but was not, in his opinion, altogether im- pensed by the consumer. Suppose one mechanic practicable. It being, however, one of the most art to be heavily taxed, and others not taxed at oppressive and unequal taxes, ought not to be re- all. This, at first, will be oppressive; but the art sorted to but in the last extremity; that great cau- being necessary in society, other arts must contion ought to be observed in the first commence- tribute to support it under the increased burden. ment of the business; and the system that may be The tax will, like any other expense necessarily finally adopted ought to have the most mature incurred in the manufacture, be added to the price and deliberate consideration which the present of the article; and this contribution to reimburse stage of the session would admit of. As it was the manufacturer who advances it will make it proposed that the tax should not take effect but an indirect tax, according to the idea of the genupon the contingency of a war, it was unneces- tleman from Virginia. If, on the other hand, all sary to lay it at this time, as Congress must con- mechanic arts and all natural subjects of taxation vene before war could be declared; and the mem- are taxed by the Legislature in due proportion, bers of the House would be able, from the course this is a direct tax; because no such invisible conof events during the recess, to judge of the pro- tribution is necessary, as each has originally borne bability of a war, and, if appearances should be its proportionate burden. Mr. D. thought, that, if threatening, would doubtless revolve the subjects any mode of taxation be permanent, it will soon in their minds, and gain all the information in be equal. The most unequal imposition will, like their power, and come together much better pre- a fluid, soon diffuse itself equally through all the pared to digest a system than they can be at this proper and natural subjects of taxation. Mr. D. time. The people, he believed, were fully sensi-thought, also, that direct taxation ought not to be ble that, in case of a war, almost all the resources from which the present revenue is drawn would be cut off, and that there could be no other resort but to direct taxes. If the present was contemplated as a war tax, the sum of $750,000 would be wholly inadequate, and the cost of collecting that sum would be nearly the same as to collect $3,000,000; if we had no war, he was of opinion there were other sources of revenue sufficient to supply the present exigency, and that we ought not to resort to a direct tax. He hoped, therefore, the resolution would be stricken out.

Mr. DEXTER Concurred with the two gentlemen who spoke last as to striking out the clause. He thought it an unnecessary incumbrance upon the

pursued by the General Government, except in time of war, because it is the only source of revenue for the support of State Governments and payment of State debts.

Mr. S. SMITH did not think that the sums in the report would be pressingly wanted, for, in the first place, he had no fear now of a war, and, in the second place, the revenues of 1794 would exceed those of 1792, from which the estimate of the Committee of Ways and Means had been taken. There would be a greater importation in the next Fall than in the last; because England was overstocked with commodities for export, and would be very glad to trust America. He said that English manufactures had been sold to