Chapter V: Introduction (4)

Mr. WHITE thought with the gentleman from Pennsylvania, that the United States would furnish this article in sufficient abundance, not only for home consumption, but for exportation. The maritime powers of Europe do not raise the article, but obtain it principally from Russia--these powers are as well disposed to take it from us as from Russia. Our back lands are extremely well adapted to its cultivation; a road to bring it to market is opening; the Potomac extends her now navigable waters into the interior country, and a communication will be established with the river Ohio and the western waters. The gentleman from Pennsylvania (Mr. HARTLEY) had hinted at the propriety of settling the western territory; it was his opinion that every encouragement ought to be given them to engage their affection; that the administration of the Government ought to be such as to give satisfaction to all parts of the Union, but it is peculiarly our interest to render that country advantageous; her fertile lands, and streams easy of descent, would pour into the Atlantic States, through the channels he had mentioned, a profusion of wealth, and hemp in abundance. The Shenandoah river disembogues into the Potomac, the South Branch communicates with it also, and a number of other rivers whose lands will produce immense quantities. He considered that this, in a short time, would do more towards encouraging ship-building than a bounty, as had been mentioned by some gentlemen.

Mr. BURKE thought it proper to suggest to the committee what might be the probable effect of the proposed measure in the State he represented, (South Carolina,) and the adjoining one (Georgia.) The staple products of that part of the Union were hardly worth cultivation, on account of their fall in price; the planters are, therefore, disposed to pursue some other. The lands are certainly well adapted to the growth of hemp, and he had no doubt but its culture would be practised with attention. Cotton is likewise in contemplation among them, and if good seed could be procured, he hoped it might succeed. But the low, strong, rice lands, would produce hemp in abundance--many thousand tons even this year, if it was not so late in the season. He liked the idea of laying a low duty now, and encouraging it against the time when a supply might be had from our own cultivation.

Mr. MADISON feared seventy-five cents was too high; he was doubtful whether it would not have been as well to have left out cordage; for if a duty on hemp was impolitic because it burthened navigation, so also was that on cordage. He by no means approved of measures injurious to ship-building, which he considered in a threefold view: first, as it related to vessels employed in the coasting trade; second, as it respected those employed in those channels of trade, the stream of which depends upon the policy of foreign nations; and third, as it was connected with vessels built for sale. With respect to the first, no doubt but we can prevent any discouragement from the operation of the duty, because we can make such discrimination as will prevent a rivalship; but, in relation to the two other points, and particularly the last, he was sensible that every penny laid upon cordage would enter into the price of the vessel, and, by raising the price, drive the purchasers to seek a better bargain at other hands. Fearful therefore of injuring this interest, he should vote for a small duty at present, in hopes of being able to see, in a little time, sufficient quantities of hemp brought to market, as predicted, at even a less price than is given now for the imported.

Mr. SMITH agreed to forty cents, provided the committee would make it one dollar at the end of two years.

Mr. MADISON could not judge of the alteration in the circumstances of this country two years hence, and therefore did not like the kind of provision mentioned. He preferred making it a positive sum, and moved fifty cents; which was agreed to.

On malt.

Mr. SHERMAN thought this might be struck out, on the same principle that beef and pork had been, there was none imported.

Mr. FITZSIMONS replied, that there had been considerable and recent importations of this article into the United States--30,000 bushels in one year; certainly this interferes with the products of the country. He moved ten cents per bushel, and it was agreed to.

On motion of Mr. AMES, barley was taxed six cents, and lime one hundred cents. He just stated that these articles were imported in considerable quantities from a neighboring State that had not yet adopted the constitution; and, perhaps, said he, our political situation is such as to make some regulation on this head necessary.

On nails, spikes, tacks, and brads.

Mr. LEE did not think we were ripe for such extensive manufactures as some gentlemen seemed desirous of encouraging; but this was particularly objectionable, because it was a tax upon the improvement of estates, unless the articles could be furnished as cheap and abundantly at home as they were by foreign nations. He moved to strike it out.

Mr. MADISON conceived this, like a tax on hemp, would increase the price on ship-building; spikes and nails were necessary for the construction of vessels.

Mr. BLAND thought a duty on nails an unequal tax, burthening the Southern States, but not felt by the Northern, who made only enough for their own consumption; he opposed it also on account of its being an article of indispensable necessity.

Mr. GOODHUE informed the gentlemen who were opposed to a duty on nails, that great quantities of them were manufactured for exportation in Massachusetts and Pennsylvania, and he believed some other States; and, in a little time, enough might be made to supply all North America.

Mr. TUCKER judged, from what was said of the little expense and great facility of manufacturing nails, that it stood in no need of legislative assistance. Why lay a duty on foreign nails, when they cannot rival you if you make them as good and as cheap? Will not the five per cent. duty, with freight and shipping charges, be sufficient encouragement? He thought it would, and therefore was averse to any other duty. He observed also, that it would burthen ship-building, and was, consequently against those employed in that business.

Mr. FITZSIMONS was not very solicitous about the duty. He thought the manufacturer would have but little to apprehend if the Legislature should decide against them; for, the fact was, that nails were at this moment made cheaper and, in the opinion of some judges, better than those coming from England. Before the revolution, the people in America were not permitted to erect slitting mills. They now have several, and are independent of all the world for the materials necessary for carrying on the business in the most extensive manner. So far as the duty respected the manufacture in Pennsylvania, it was his opinion that refusing it would do no material injury, and he believed it would draw but little money into the treasury; yet, nevertheless, he was willing to allow a small one, because it conformed to the policy of the States, who thought it proper, in this manner, to protect their manufactures. He believed neither spikes nor nails for ship-building were imported; they were generally large and heavy, and were made in the country, according to the builder's orders.

On the motion, nails and spikes were taxed one cent per pound, but tacks and brads were struck out.

On salt, per bushel.

Mr. BURKE.--I need not observe to the committee that this article is a necessary of life, nor that black cattle, sheep, and horses do not thrive without it; on these considerations alone I should oppose it; but I know likewise that it is a tax particularly odious to the inhabitants of South Carolina and Georgia, to whom the price is already oppressively great. The back parts of that State are obliged to haul all they consume, two, three, or four hundred miles in wagons, for which they pay about seven shillings sterling. Add this to the first cost, which is about one shilling, though sometimes more, and you will find the burthen sustained by those who live remote from the sea-shore sufficiently unequal. I hope, therefore, the committee will not agree to it.

Mr. LAWRENCE hoped a duty would be laid on the article; it was in general use, and the consumption so regular, that it was much to be depended upon as a source of revenue; but the duty ought not to be so high as to make it oppressive. He moved to impose a duty of six cents per bushel.

Mr. TUCKER felt an aversion to laying a duty on salt for several motives. It would bear harder upon the poor than upon the rich. The true principle of taxation is, that every man contribute to the public burthens in proportion to the value of his property. But a poor man consumes as much salt as a rich man. In this point of view, it operates as a poll-tax, the most odious of all taxes; it does not operate simply as a poll-tax, but is heavier on the poor than on the rich, because the poor consume greater quantities of salted provisions than the rich. Nor does it bear equally upon every part of the country; for it is consumed in a greater proportion by cattle at a distance, than by those near the sea shores. Moreover, the duty collected on the importation will enter into the price of the article, and the countryman will pay the retailer a profit on the tax, perhaps of four times its amount. For which reasons, he was more averse to this article being taxed than any other whatsoever.

Mr. SCOTT declared himself decisively against the duty, although he admitted a most certain revenue could be drawn from it, on account of its universal demand and utility. But he did not think these considerations alone amounted to a sufficient reason why this necessary article should be taxed; if they did, the argument would prove too much, it would extend to the use of water and common air. He presumed the old arguments often urged by gentlemen in favor of manufactures did not apply, because no encouragement would be sufficient to establish it.

From the nearest part of the Atlantic coast, where salt can be obtained, to the next nearest in the Western territory, is a distance of eight hundred or one thousand miles; all the intermediate space must be supplied from one or the other; over the mountains it must be carried on pack-horses. This of itself is a sufficient tax upon the consumer; how oppressive then must it be to increase the burthen.

Mr. MOORE observed upon the inequality, as it respected the consumption of the article by cattle: some States raised more than others, consequently they consumed more; some parts of the same State were in a like situation. The people on the sea-coast pursued merchandise; those in the back parts raised cattle, which he was bold to say consumed five times as much salt as the lower country, and would pay the tax in the same proportion. It has been said, that if they pay more on salt, they pay less on other articles--agreed to. But there are a number more which may perhaps unequally affect them; yet it is an argument of small weight to say, because we in large commercial cities are regulated in a sumptuary manner for indulging in luxuries, you who are obliged to retrench them shall pay a tax upon the necessaries of life. In short, the tax appeared to him not only unpopular, but unjust likewise, and he would not agree to it.

Mr. SMITH (of South Carolina.)--If any further arguments were necessary to convince the committee of the impropriety of the present measure, more might be urged, though what has been said is certainly sufficient to demonstrate that it will be attended with a great deal of dissatisfaction, and in proportion to that dissatisfaction will be the danger of having your laws contemned, opposed, or neglected in the execution. It is well known, that however small the duty, it will furnish a pretext to the seller to extort a much greater sum from the consumer. Another observation. It is believed that the inhabitants of the interior part of South Carolina are opposed to the new Government; it will be a melancholy circumstance to entangle ourselves, at this time, among the shoals of discontent; yet no stronger impulse could be given for opposition than the proposed tax; conceiving it in this light, he was against the measure.

Mr. SCOTT added, that the price of salt where he lived was four dollars a bushel, the country was settled three or four hundred miles beyond him, and he supposed the price there to be greater.

Mr. LAWRENCE thought it would be better for the committee to take time to examine what had been urged against the tax, and as it was the usual time for adjourning, the committee might rise and defer their decision till to-morrow.

Whereupon the committee rose, and the House adjourned.

FRIDAY, April 17.

BENJAMIN CONTEE, from Maryland, appeared and took his seat.

_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 of laying a duty on salt recurred.

Mr. LAWRENCE.--I had the honor yesterday of delivering my sentiments in favor of this duty; but observations were made by gentlemen from different parts of the House against the measure. The principal objection was, that the tax was an odious one. It was admitted by a worthy gentleman from Pennsylvania (Mr. SCOTT) that all taxes are odious; this is certainly true, for the people are not pleased with paying them; nothing but necessity will induce a Government to have recourse to them. It is also true, that some are more odious than others. From what has been said, it may be seen that a tax on salt is not so in general, but only in particular parts of the Union; the remote inhabitants, it is said, will be dissatisfied, because it increases the price of the commodity, and they use more of it than others. It is mentioned as partaking of the nature of a capitation tax, but this kind of tax is odious, more from its manner of operation than its nature. We find in some States where it is in use, the people live easy under it; for example, it is not complained of in some of the Eastern States. We have not much to apprehend from a tax on salt in this State; the people are satisfied with it; at least the complaints are neither so loud nor so general, as to make us apprehensive for the existence of the Government we live under. Its operations, though the contrary was predicted, go on with as much ease since an impost has been laid, as they did before. I believe, likewise, we have only to try the experiment, to be convinced it would have a similar effect throughout the continent; for I cannot persuade myself that it is generally looked upon in so odious a light as some gentlemen imagine. It was also said, that the tax would be unequal, and the objects of inequality were two. The poor man would pay as much as the rich; but this is not the case; the rich are generally more profuse in their consumption than the poor; they have more servants and dependents also to consume it; consequently the whole amount of their consumption must be in a proportionable ratio. The other inequality was its different operation in different States, and even different parts of the same State. On examination, this objection also may be obviated. Gentlemen tell you the high price of this article at three or four hundred miles distance; is it not hence presumable that there they consume as little as possible, while along the sea-coasts they use it with a liberal hand? But whether it be consumed on the sea-coast, or on the western waters, the tax is the same, or but inconsiderably augmented; for I take it the great addition which is made is in consequence of the charge of carriage. I cannot, therefore, see by what magic gentlemen will prove to you that it is increased four or five fold. We must also take into contemplation the number of persons who consume it; here it will appear, that the weight of population is much greater on the sea-coast than in the western parts of Pennsylvania, Virginia, and Carolina, consequently the consumption must be greater. It was said, the argument I urged was not a good one, because it proved too much, that an article of general consumption was not the best article for taxation; now, I believe the maxim is just, and when examined it will be found so. Taxes, to be just, should affect all, and equally affect them, and not be left to fall partially upon a few. This is more the case with salt than any other article which has yet been taxed, and I believe is the only tax which will get at the pockets of those to whom it is said to be obnoxious. But how comes it, if the other articles are equally consumed in the back countries, that gentlemen did not urge the argument of expense on transportation, and the pretext that a tax would furnish the seller to extort from the consumer.

Mr. MADISON.--From the nature of the arguments made use of on this occasion, it is necessary to proceed with some circumspection, though not to depart from that policy which can be justified by reason and experience. I am willing to trust a great deal to the good sense, justice, and penetration of our fellow-citizens for support; and though I think it might be just to lay a considerable duty generally on imported articles, yet it would not be prudent or politic, at this time, to do so. Let us now proceed to consider the subject before us, on the principles of justice and principles of policy. In the first point of view, we may consider the effect it will have on the different descriptions of people throughout the United States, I mean different descriptions, as they relate to property. I readily agree that, in itself, a tax would be unjust and oppressive that did not fall on the citizens according to their degree of property and ability to pay it; were it, therefore, this single article which we are about to tax, I should think it indispensable that it should operate equally, agreeably to the principle I have just mentioned. But in order to determine whether a tax on salt is just or unjust, we must consider it as part of a system, and judge of the operation of this system as if it was but a single article; if this is found to be unequal, it is also unjust. Now, examine the preceding articles, and consider how they affect the rich, and it will be found that they bear more than a just proportion according to their ability to pay; by adding this article, we shall rather equalize the disproportion than increase it, if it is true, as has been often mentioned, that the poor will contribute more of this tax than the rich. When we consider the tax as it operates on the different parts of the United States, dividing the whole into the northern, middle, and southern districts, it will be found that they contribute also in proportion to their numbers and ability to pay. If there be any distinction in this respect, it will be perceived to be in favor of the southern division, because the species of property there consists of mouths that consume salt in the same proportion as the whites; but they have not this property in the middle and northern districts to pay taxes for. The most important objection is, that the western part of our country uses more salt than any other; this makes it unequal; but, considered as a part of a system, the equilibrium is restored, when you find this almost the only tax they will have to pay. Will they contribute any thing by consuming imported spirits? Very little. Yet, this is a principal source of revenue; they will subsist upon what they procure at home; and will they submit to a direct tax, if they murmur at so light a one on salt? Will they submit to an excise? If they would, I trust it is not in the contemplation of gentlemen to propose it.

Mr. WHITE, after some doubts, had made up his mind against the article being taxed. We ought to pass no law that is unjust or oppressive in its nature, or which the people may consider as unjust or oppressive; a duty on salt would be considered in that light by a great number. Our constituents expect some ease and relief, particularly the poorer sort of people. It seems to be granted, from all that has been said, that it will affect them in a manner which no other tax can, though, it is said, they will not be affected beyond their proportion, as they pay nothing for the consumption of wine, spirits, &c. because they use none. One reason which influenced the committee to tax those articles, was to abolish the use of them altogether, or prevent the excesses they occasioned. Now will you urge in argument for taxing the poor, that they already practise that temperance which you desire to bring universally about? All taxes, it is admitted, are odious, and some merely from opinion; but if they are odious from opinion, they ought to be carefully guarded against, especially if the Government depends upon opinion for support.

Mr. SMITH, of Maryland, said, they collected eight cents in his State, and it caused no complaint that he knew of.

The question on imposing six cents on salt was put and carried, as was a motion for a drawback on salted provisions and fish.

On manufactured tobacco.

Mr. SHERMAN moved six cents, as he thought the duty ought to amount to a prohibition. This was agreed to.

On snuff, ten cents per pound.

Mr. CARROLL moved to insert window and other glass. A manufacture of this article was begun in Maryland, and attended with considerable success; if the Legislature were to grant a small encouragement, it would be permanently established; the materials were to be found in the country in sufficient quantities to answer the most extensive demand.

A desultory conversation arose in the committee respecting the propriety of receiving the motion at this time, when it was agreed to add on all window and other glass, except black quart bottles, ten per cent. _ad valorem_.

Mr. CLYMER informed the House of the state of the paper mills in Pennsylvania; they were so numerous as to be able to supply a very extensive demand in that and the neighboring States; they annually produce about 70,000 reams of various kinds, which is sold as cheap as it can be imported. This manufacture certainly is an important one; and having grown up under legislative encouragement, it will be wise to continue it. Thereupon it was agreed to lay an impost of seven and a half per cent. _ad valorem_ on blank books, writing, printing, and wrapping paper, and pasteboard; the same, without debate, was laid upon canes, walking-sticks, whips, clothing ready made, on gold, silver, and plated ware, and on jewelry and paste work; upon cabinet ware, buttons of metal, saddles, gloves of leather, all hats of beaver, fur, wool, or mixture of either, all millinery, castings of iron, or slit or rolled iron, all leather tanned or tawed, or manufactures thereof, except such as are otherwise rated.

On every coach, chariot, or other four wheel carriage, and on every chaise, solo, or other two wheel carriage, or parts thereof, fifteen per cent. _ad valorem_.

SATURDAY, April 18.

Mr. WHITE, from the Committee of Elections, reported that the committee had examined the certificates and other credentials of the members returned to serve in this House, and found them entitled to take their seats; which report was concurred with.

_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.

On motion of Mr. GOODHUE, anchors at seven and a half per cent. _ad valorem_, was added.

On motion of Mr. SHERMAN, nutmegs, cinnamon, raisins, figs, currants, and almonds, were struck out.

Mr. AMES introduced wool cards, with observing that they were manufactured to the eastward as good and as cheap as the imported ones.

Mr. CLYMER mentioned, that in the State of Pennsylvania, the manufacture was carried to great perfection, and enough could be furnished to supply the demand. A duty of fifty cents per dozen was imposed on wool cards.

On wrought tin ware, seven and a half per centum _ad valorem_; on every quintal of fish, fifty cents; and on every barrel of pickled fish, seventy-five cents.

Mr. FITZSIMONS moved the following: On all teas imported from China or India, in ships built in the United States, and belonging wholly to a citizen or citizens thereof, as follows: on bohea tea, per pound, six cents; on all souchong and other black teas, ten cents; on superior green teas, twenty cents; on all other teas, ten cents.

On all teas imported from any other country, or from China or India, in ships which are not the property of the United States, as follows: on bohea tea, per pound, ten cents; souchong, and other black teas, fifteen cents; on superior green teas, thirty cents; on all other green teas, eighteen cents per pound.

Mr. FITZSIMONS supported the motion, by observing that one effect of the late glorious revolution was, to deprive the merchants of America of most of the channels of commerce which they had before pursued. This circumstance obliged them to search for other sources to employ their vessels in. It had been discovered that a pretty lucrative trade could be carried on with the countries in the east; the merchants have gone largely into it, and it at present gives employment to some thousand tons of American shipping and seamen; our success has been so great, as to excite the jealousy of Europe, and nothing is left undone to cramp or prevent our commercial operations in that quarter. The Legislature of Pennsylvania, impressed with the importance of the subject, had granted it aid by discriminating in the manner he proposed to the committee; and with the like aid from the Government of the United States, the merchants may no longer fear the machinations of the opulent companies in Europe, who are unwilling to let us partake of a trade they so long have had a monopoly of. Already the trade to India has had a very happy effect in favor of our inhabitants, by reducing commodities brought from thence to one half of their former price, and yet a sufficient profit is left to enable those concerned to carry it on with advantage.

Mr. MADISON felt a reluctance in being obliged to state his reasons why he doubted the policy of the proposed measure. What, said he, is its object? It is not to add to the revenue, for it will in fact tend to diminish it, in that proportion which the importation from China lessens that from other parts; it is not to increase our commerce, for long voyages are unfriendly to it; it is not to increase the importation of necessary articles, for India goods are mostly articles of luxury; it is not to carry off our superfluities, for these articles are paid for principally, if not altogether, in solid coin. If the trade is beneficial at all to the United States, it must be in this single point of view, that the articles can be imported cheaper through that channel than any other; and, if so, that it is the interest of the people to be supplied as cheap as possible. There are no collateral good purposes to claim our attention in this case. It is not in the nature of things that we should derive any other advantage than the one I have mentioned, without it is that of raising our India commerce from its weak and infant state to strength and vigor; to enable it to continue supplies at a cheaper rate than they could otherwise be obtained.

Mr. GOODHUE replied to Mr. MADISON's observations, respecting the mode of paying for India goods, by informing the committee that very considerable quantities of ginseng, naval stores, lumber, and provisions, were shipped; other articles were sent also, and disposed of at ports on this side of China, in order to procure the most suitable cargo; so that we do not pay principally for their commodities in solid coin, but send off superfluities to a considerable amount, much more than if we were to procure our teas and nankeens from any part of Europe.

Mr. MADISON had not made the objection merely because the specie was exported, but to show that it did not bring in an equivalent, as the goods were mostly of that kind which are termed luxuries.

Mr. BOUDINOT declared himself a friend to the Indian commerce. He thought it encouraged the employment of shipping, and increased our seamen; he knew its advantages to agriculture. The gentleman from Virginia (Mr. MADISON) supposed but little of our productions were sent in exchange for India goods; but our beef, pork, flour, and wheat, were shipped for this purpose, not to China, yet to ports where proper cargoes were taken in to answer the trade. Encouragement and protection were necessary to prevent the large companies in Europe from underselling our merchants, which they would readily do, at considerable loss, if they could, in consequence, put a stop to our trade. He hoped, therefore, the committee would not hesitate in adopting the motion.

The motion was adopted accordingly.

On coal per bushel ---- cents.

Mr. BLAND informed the committee, that there were mines opened in Virginia capable of supplying the whole of the United States, and, if some restraint was laid on the importation of foreign coal, those mines might be worked to advantage. He thought it needless to insist upon the advantages resulting from a colliery, as a supply for culinary and mechanical purposes, and as a nursery to train up seamen for a navy. He moved three cents a bushel.

Mr. HARTLEY was willing to admit a moderate duty, but thought three cents would be a great discouragement to those manufactures which necessarily consume large quantities of fuel. He moved one cent.

Mr. PARKER said, that a less sum than three cents would not answer the purpose intended. Coal came from England as ballast, and was sold so low, as almost to prevent the working of their mines in Virginia. He hoped, if the committee were disposed to encourage them, they would proportion the means to the end; a duty of one cent would be void; nothing under what was moved by his colleague (Mr. BLAND) could answer the purpose. He hoped, therefore, the committee would agree to three cents.

On the question, there appeared a majority in favor of three cents. After which the committee rose, and the House adjourned.

MONDAY, April 20.

ABRAHAM BALDWIN and JAMES JACKSON, from Georgia, appeared and took their seats.

_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 following clause of the bill was agreed to, viz: "On all other articles, five per cent. on their value at the time and place of importation, except tin in pigs, tin plates, lead, old pewter, brass, iron or brass wire, copper in plates, wool, dying woods and dying drugs, (other than indigo,) raw hides, beaver, and all other furs, and deer skins."

Mr. FITZSIMONS proposed a drawback of six cents per gallon on all rum distilled in the United States, exported without the limits of the same.

Mr. MADISON asked if the quantity of rum so exported was very considerable? He believed it was not; and he would not, for the sake of encouraging that branch of trade, open a door by which frauds on the revenue could be committed equal to the whole duty collected.

Mr. FITZSIMONS could not say what quantity of rum was exported in that way; but he feared, unless a drawback was allowed, it would be a great injury to the manufacture. At the time the duty of six cents on molasses was laid, he thought it was understood, the committee would allow a drawback on the rum exported. There seems to be an apprehension that the system of drawbacks will operate to the disadvantage of the revenue; but he believed a mode could be devised to prevent frauds, in this case, fully as effectually as on the importation. If this was not done, it would be time enough for gentlemen to oppose it; they would have this opportunity, because a bill, regulating the manner of collection, he presumed, would pass at the same time with the one for levying the duties. If drawbacks were not allowed, it would be a very considerable restraint on commerce, particularly on the India trade, which he believed was likely to be considerably extended. He was sorry the gentlemen from Massachusetts were not there in their places,[20] to give information to the committee respecting the quantity exported from that State; from Pennsylvania the quantity was but small.

Mr. FITZSIMONS contended for drawbacks generally, but on this article it was particular injustice to omit it. The manufacture of rum was of considerable importance in the Eastern States, but it would not be able to stand a successful competition with West India rum in foreign countries, while loaded with a duty of six cents per gallon. The tax on molasses was that sum, and he looked upon it to be the same thing as if it had been paid on the rum at distillation; one gallon of the former yielding but one of the latter.

Mr. MADISON thought there were very few cases in which drawbacks ought to be allowed, perhaps none but what related to the East India trade. The small proportion of distilled rum exported did not justify so great a risk; but of the small proportion which went abroad, the greatest part went to the coast of Africa. He feared this trade was inconsistent with the good of mankind, and ought to be reprobated instead of encouraged.

Mr. BLAND said the committee had spent several days in encouraging manufactures, by selecting articles for revenue, and were now extending their views to the encouragement of commerce. He thought there was some impropriety in combining the clause proposed in this part of the bill, and even doubted if it was in order; therefore would vote against it.

The question was put on the motion for a drawback on country rum, and lost.

Mr. FITZSIMONS had another clause upon the same subject, only on more general principles; he hoped gentlemen would consider well before they doomed it to share the fate of the former. It was to this purpose: that all the duties paid, or secured to be paid, upon goods imported, shall be returned or discharged upon such of the said goods, as shall within ---- months be exported to any country without the limits of the United States, except so much as shall be necessary to defray the expense that may have accrued by the entry and the safe keeping thereof. The subjects of duties and drawbacks are so connected by their nature, that he did not see how they were to be separated. Gentlemen did not imagine that what had been done tended to favor commerce; it certainly did not. Every impost which is paid is a disadvantage to the person concerned in trade, and nothing but necessity could induce a submission to it. The interest of the landholder is undoubtedly blended with the commercial interest; if the latter receive an injury, the former will have to sustain his proportion of it; if drawbacks are not allowed, the operations of trade will be considerably shackled; merchants will be obliged, in the first instance, to send their cargoes to the place of consumption, and lose the advantage of a circuitous freight, which alone is a profit of no small magnitude.

Mr. HARTLEY expressed his sorrow for the last decision of the committee; he wished the question had not been put in the absence of the gentlemen from Massachusetts, who were on a business in some degree of a public nature. The present motion was only just brought in; he submitted, therefore, to the committee, if it were not best to pass it over for the present, in order to give time for consideration.

TUESDAY, April 21.

Mr. HARTLEY asked and obtained leave of absence.

WEDNESDAY, April 22.

PETER SYLVESTER, from New York, appeared and took his seat.

THURSDAY, April 23.

JOHN HATHORN, from New York, appeared and took his seat.

FRIDAY, April 24.

Mr. BOUDINOT reported, from the committee appointed to attend with a committee from the Senate, to receive the President of the United States, at the place of his embarkation from New Jersey, that the committee did, according to order, together with a committee from the Senate, attend at Elizabethtown, in New Jersey, on the 23d instant, at which place the two committees met the President, and thence embarked for this city, where they arrived about three o'clock in the afternoon of the same day, and conducted him to the house appointed for his residence.

The Speaker laid before the House a letter from the Vice President of the United States, enclosing a resolution of the Senate, appointing a committee to consider and report what style or titles it will be proper to annex to the office of President and Vice President of the United States, if any other than those given in the constitution; also to consider of the time, place, and manner in which, and the person by whom, the oath prescribed by the constitution, shall be administered to the President, and to confer thereon with such committee as this House should appoint for that purpose; whereupon,

_Ordered_, That a committee, to consist of five members, be appointed for the purpose expressed in the resolution of the Senate.

The members elected were Messrs. BENSON, AMES, MADISON, CARROLL, and SHERMAN.

_Duties on Imports._

The House then proceeded to consider the resolutions reported by the Committee of the Whole on the state of the Union.

Mr. BOUDINOT complained that the articles were generally taxed too high, not too high for the article to bear, but too high for the due collection of the revenue. Every thing we tax should be considered as it relates to the interest of the importer, as well as other circumstances; now, if it is discovered that the duties are so great as to make it a beneficial trade to the merchant to run his goods, he will do so, and injure the revenue.

Mr. MADISON was sensible that high duties had a tendency to promote smuggling, and in case those kinds of frauds were successfully practised the revenue must be diminished; yet he believed the sum proposed on spirits was not so high as to produce those effects to any considerable degree. If any article is capable of paying a heavy duty, it is this; if the duty on any article is capable of being collected with certainty, it is this; if a duty on any article is consonant with the sentiment of the people of America, it is this; why then should not the article be made as tributary as possible to the wants of Government? But, besides these favorable circumstances, I think the combination of the merchants will come in aid of the law; the people will also lend their aid. These circumstances would do much toward insuring the due collection of the revenue.

Mr. JACKSON seconded Mr. BOUDINOT's motion for reducing the duties, because he was well convinced they were too high even to be well collected, unless we establish custom-houses every ten or twelve miles, like watch-towers, along the sea-coast. When trade is so unproductive, the Legislature ought to be careful how they make it more worth a man's while to live by committing frauds upon the revenue than by practising honest commerce.

There is another consideration which particularly regarded the Georgia trade. That country, abounding with lumber of the most luxurious growth, could only exchange it for rum; and a very considerable commerce grew out of this intercourse favorable to Georgia. This would be affected by the imposition of heavy duties; but commercial considerations, we shall be told, form only a secondary object in this business. There is another proposition in which he acquiesced; it would be more convenient, and more to the honor of the House, to make their first essay with low duties; because, if they persisted in laying them high, they would be compelled to an inglorious retreat, and the Government would be insulted. In the State he represented, it was next to impossible to collect the revenue, the country was so intersected with navigable creeks and rivers, if the people were disposed to evade the payment of it; and there was no more certain way to produce this disposition than by making it their interest to defraud you.

Mr. BOUDINOT was not ashamed to confess that he wanted the advantages of commercial knowledge on a question where the principles of trade were interwoven; but he opposed high duties on a conviction in his own mind that they could not be collected. He repeated some few of his former arguments to show why he held this opinion; but it was not the particular article of rum that he was opposed to, it was the high scale on which the duties were laid generally, and that only from an idea that greater revenue might be obtained from less duties.

Mr. TUCKER wished the duties to be lowered, and proposed to the committee to strike off seven cents from the fifteen; by varying his motion in this manner, he expected the sense of the House could be taken on his proposition first, notwithstanding the rule that "the question shall be put on the highest sum first." He joined in the opinion that high duties were productive of smuggling; that notwithstanding the powers and vigilance of custom-house officers, and the whole Executive, contraband trade is carried on in every nation where the duties are so high; the facility with which it could be done in America ought to show a prudent Legislature the degree of probability; unless this can be guarded against, what will the law avail? It can avail nothing. Besides, the higher the duty is laid, the more you expose the officer to the temptation of being corrupted; when that is done, the revenue will be very unproductive.

Mr. BLAND would second the gentleman last up, but thought it was not in order to have the question taken first on the lowest sum.

Mr. FITZSIMONS observed to the House, that the decision of the present question, in his mind, involved some very important alterations in the present measure; the consequences resulting from which ought to be well considered. In order, therefore, to gain time for this purpose, he would move an adjournment; whereupon the House adjourned.

SATURDAY, April 25.

Mr. BENSON, from the committee appointed to consider of the time, place, and manner in which, and of the person by whom the oath prescribed by the constitution shall be administered to the President of the United States, and to confer with a committee of the Senate for the purpose, reported as followeth:

That the President hath been pleased to signify to them
that any time or place which both Houses may think proper
to appoint, and any manner which shall appear most eligible
to them, will be acceptable to him: that requisite
preparations cannot probably be made before Thursday next:
that the President be on that day formally received by both
Houses in the Senate Chamber: that the Representatives'
Chamber being capable of receiving the greater number of
persons, that therefore the President do take the oath in
that place, and in the presence of both Houses: that after
the formal reception of the President in the Senate
Chamber, he be attended by both Houses to the
Representatives' Chamber, and that the oath be administered
by the Chancellor of this State.

The committee further report it as their opinion, that it
will be proper that a committee of both Houses be appointed
to take order for further conducting the ceremonial.

The said report was twice read; and, on the question put thereupon, agreed to by the House.

_Ordered_, That Messrs. BENSON, AMES, and CARROLL be a committee on the part of this House, pursuant to the said report.

MONDAY, April 27.

The SPEAKER laid before the House a letter from the Vice President of the United States, enclosing certain proceedings of the Senate, touching the ceremonial of the formal reception of the President of the United States, by both Houses, which were read, and ordered to lie on the table.

Mr. BENSON, from the committee of both Houses, appointed to take order for conducting the ceremonial of the formal reception of the President of the United States, reported as followeth:

"That it appears to the committee more eligible that the
oath should be administered to the President in the outer
gallery adjoining the Senate Chamber, than in the
Representatives' Chamber, and therefore submit to the
respective Houses the propriety of authorizing their
committees to take order as to the place where the oath
shall be administered to the President, the resolutions of
Saturday, assigning the Representatives' Chamber as the
place, notwithstanding."

The said report being twice read,

_Resolved_, That this House doth concur in the said report,
and authorize the committee to take order for the change of
place thereby proposed.

The SPEAKER laid before the House a letter from the Vice President of the United States, enclosing two orders of the Senate, one of the 13th instant, appointing a committee to confer with any committee to be appointed on the part of this House, respecting the future disposition of the papers, &c. in the office of the late Secretary of the United States: the other of the 27th instant, for the attendance of both Houses, with the President of the United States, after the oath shall be administered to him, to hear divine service at St. Paul's Chapel: which was read, and ordered to lie on the table.

TUESDAY, April 28.

Mr. RICHARD BLAND LEE, from the committee to whom was recommitted the report respecting the mode of communicating papers, bills, and messages, between the two Houses, reported as followth:

"When a message shall be sent from the Senate to the House
of Representatives, it shall be announced at the door of
the House by the doorkeeper, and shall be respectfully
communicated to the Chair, by the person by whom it may be
sent.

"The same ceremony shall be observed when a message shall
be sent from the House of Representatives to the Senate.

"Messages shall be sent by such persons as a sense of
propriety in each House may determine to be proper."

The said report was twice read, and, on the question put thereupon, agreed to by the House.

A letter from Matthias Ogden, of New Jersey, referring to sundry petitions from citizens of that State, complaining of illegality in the late election of Representatives for that State to this House was read and ordered to lie on the table.

The order of the Senate of the 13th instant was read, appointing a committee to confer with any committee to be appointed on the part of this House, respecting the future disposition of the papers in the office of the late Secretary of the United States; whereupon

_Ordered_, That Messrs. TRUMBULL, CADWALADER, and JACKSON, be a committee for that purpose.

WEDNESDAY, April 29.

The House proceeded to consider the report from the Committee of Elections (which lay on the table) on the petition of David Ramsay, of the State of South Carolina, suggesting that William Smith, returned a member of this House, as elected within that State, was, at the time of his election, ineligible; and the said report being amended to read as followeth:

That in this case it will be sufficient in the first
instance, that a committee take such proofs as can be
obtained in this city respecting the facts stated in the
petition, and report the same to the House--That Mr. Smith
be permitted to be present from time to time when such
proofs are taken, to examine the witnesses, and to offer
counter-proofs, which shall also be received by the
committee, and reported to the House--That if the proofs so
to be reported shall be declared by the House insufficient
to verify the material facts stated in the petition, or
such other facts as the House shall deem proper to be
inquired into, it will then be necessary for the House to
direct a further inquiry, and especially the procuring
whatever additional testimony may be supposed to be in
South Carolina, as the case may require--That all questions
arising on the proofs be decided by the House, without any
previous opinion thereon reported by a committee.

_Resolved_, That this House doth agree to the said report,
and that it be an instruction to the Committee of Elections
to proceed accordingly.

On motion,

_Ordered_, That a committee be appointed to prepare and report an estimate of the supplies requisite for the present year, and of the net produce of the impost as agreed to by the House, and that Messrs. GERRY, SMITH, (of Maryland,) and PARKER, be of the said committee.

The House proceeded to consider the following resolution of the Senate, to wit:

"In Senate, April 27.

"_Resolved_, That after the oath shall have been
administered to the President, he, attended by the Vice
President, and the members of the Senate and House of
Representatives, proceed to St. Paul's Chapel to hear
divine service, to be performed by the Chaplains to
Congress already appointed:" Whereupon,

_Resolved_, That this House doth concur with the Senate in
the said resolution: amended to read as followeth, to wit:

"That after the oath shall have been administered to the
President, the Vice President and members of the Senate,
the Speaker and members of the House of Representatives,
will accompany him to St. Paul's Chapel, to hear divine
service performed by the Chaplains of Congress."

_Ordered_, That the Clerk of this House do carry the said resolution to the Senate, and desire their concurrence.--Adjourned.

THURSDAY, April 30.

JONATHAN GROUT, from Massachusetts, appeared and took his seat.

This being the day on which the President of the United States was inaugurated, no other business, of course, was attended to. The President's address to both Houses appears in the proceedings of the Senate.[21]

FRIDAY, May 1.

The SPEAKER laid before the House a copy of the speech of the President of the United States, to both Houses of Congress, delivered yesterday in the Senate Chamber, immediately after his inauguration, which being read,

On motion,

_Resolved_, That the said speech be committed to a
Committee of the whole House.

The House accordingly resolved itself into a Committee of the Whole, Mr. PAGE in the chair. And after adopting the following resolution, the committee rose, and reported it to the House, which agreed to it.

_Resolved_, That it is the opinion of this committee, that
an address to the President ought to be prepared,
expressing the congratulations of the House of
Representatives, on the distinguished proof given him of
the affection and confidence of his fellow-citizens, by the
unanimous suffrage which has appointed him to the high
station which he fills; the approbation felt by the House
of the patriotic sentiments and enlightened policy
recommended by his speech; and assuring him of their
disposition to concur in giving effect to every measure
which may tend to secure the liberties, promote the
harmony, and advance the happiness and prosperity of their
country.

_Ordered_, That a committee to consist of five members be appointed to prepare an address pursuant to the said resolution. The members elected Messrs. MADISON, CLYMER, SHERMAN, GALE, and BENSON.

A motion was made that the House do come to the following resolution:

_Resolved_, That ---- per annum be the compensation to be
allowed to the President of the United States, during the
term for which he is to be elected.

The said resolution being read, was committed to a Committee of the whole House.

The House then proceeded by ballot to the appointment of a Chaplain to Congress on the part of this House. Upon examining the ballots, it appeared that the Rev. WILLIAM LINN was elected.

SAMUEL LIVERMORE, from New Hampshire, appeared and took his seat.

TUESDAY, May 5.