H. OF R.] Ways and Means. [OCTOBER, 1814. differ from the honorable Chairman of the Com- | trusted. Mr. B. wished the direct and excise mittee of Ways and Means. It is not probable taxes would be left as the last subject of taxathat any system of taxation could be formed tion reported by the Committee of Ways and that would please all parts of the United States; Means; that, after ascertaining what might be and in discussing a tax which will be paid by raised from other objects, we might return to some States, or parts of States, more than other them, and make up the deficiency from them. States, we ought to remember that there are The taxes upon cotton manufactures, furniture, other articles in this report proposed to be taxed, leather, hats, shoes, watches, &c., are very obwhich will balance and equalize the burden, so jectionable. They will disturb the public mind, that, taking the whole system, there will be no now more than sufficiently excited, and thereby cause of complaint by any other State, of paying weaken the Government more than the taxes more into the Treasury than their proportion. which they will produce will strengthen the It is admitted by all that the tax will be paid Treasury. The excise and direct taxes upon almost entirely by the consumer, and that, equal and fair principles, were always favorite whenever a high duty was laid upon any arti- taxes with him, and the best internal taxes cle, the price would therefore be raised in the under a popular Government; they were cermarket. It would seem, that, as the Army and tain, easy of collection; and the people, knowNavy of the United States consume much of ing that they had to pay for the support of their domestic spirits, they would in fact raise the Government, would examine into all extrava price in the market, and thereby enable the dis- gant expenditures. But, when the money is tiller to advance the tax, which would eventu- drawn from the people by indirect means, they ally be paid by the United States. But this tax give themselves little or no trouble to inquire may be so heavy as to put down some of the how it is expended. If the Treasury had been distilleries, (especially the small ones,) and the supported partly by a direct tax, it is not probrevenue from this article thereby fail; and Con- able that the people had suffered their com gress ought to be cautious that they do not tax merce to be destroyed by your non-intercourse the article so as to destroy the contemplated restrictions and embargoes, and thereby lose revenue which they expect to derive from it. the revenue from our foreign trade, which must But, I cannot agree to this double mode of tax- have been supplied in part by taxes on land, their ing the capacity of the still and the product. I Treasury never would have been emptied by am opposed to the present tax upon the capacity schemes and experiments, nor would this war of the still; it is unequal and inconvenient. have existed. Mr. B. observed, that no man The Secretary of the Treasury states the tax was more averse to this war than he was, and now established by law, equal to a duty of five it was well known that he was opposed to the cents a gallon on the spirits distilled. With Administration; but, opposed as he was to the some distilleries, this may be the case; and dis- war and Administration, such was the danger tilleries on a large scale, and in great perfection, in which the country was placed, and the char perhaps, it will not amount to more than two acter of conquest which this war had assumed and a half cents on the gallon distilled. In on the part of the enemy, that he would not small distilleries, such as are used by farmers, it withhold the resources of the country from the will amount to not less than ten cents, and often Administration, but would give every aid in his fifteen. It was inconvenient, because the farmer power to bring it to a glorious conclusion. And was compelled to be at much trouble in obtain- he was willing that the Administration should ing the license, which he could not obtain for a possess all the honors gained by such a peace. shorter time than two weeks, although he might He did not agree with the most of his friends not have a use for his still half that time. The with whom he acted, that the campaign now only reason the honorable chairman of the Com- drawing to a close was inglorious to our arms. mittee of Ways and Means gave for continuing It is true, that, at the commencement of the the present tax, was, that it would be a guide war, the Navy far outshone the Army; and the by which the collector might detect fraud, when reason is obvious; our small and gallant Navy committed by the distiller. But, the collector was manned by sailors who had been long acmust know the industry and skill of the distil- customed to danger, and, as soon as they were lers, (which would be difficult,) or his knowl- on board the ship, they were ready for action. edge of the size of the still would be useless. Not so with the Army. Time was required to The collector might often raise groundless sus- form the recruit into a useful soldier. Our arpicions of fraud in the revenue, which would mies are now formed, and are equal in disciinflame and irritate the public mind against the pline and courage to our enemy, as this camtax, without obtaining one cent into the Treas-paign has proved. He would, therefore, imury, which it is the duty of Congress to avoid. Mr. B. believed that fraud would very seldom be practised, and would not materially affect the revenue. The duties on all imported spirits are and have been very light; yet, the American merchant held as exalted a character for honesty as the merchant of any country; and surely the farmer might with equal safety be pose taxes upon such articles as would be paid by the community without complaint, and draw a safe and productive revenue into the Treas ury; and he was persuaded they would be cheerfully paid, when the people were satisfied that they were necessary to their safety. But the honorable gentleman from Kentucky, (Mr. MCKEE,) and his honorable colleague, (Mr. EPPES) are opposed to a great increase of the excise and direct tax, because they bear harder upon Kentucky and Virginia than some other States now advocating these taxes. Before this war, the Eastern States paid more than a proportion of taxes to the General Government, by the aid of their extensive commerce, which is now gone. Their ships and fisheries are destroyed, and it may be recollected that this war is the cause, which Kentucky and Virginia had a great agency in producing. If, then, by raising the money to carry on this war, it should be found that these States paid a fraction more than other States, they ought to pay it with cheerfulness. The question on Mr. Fisk's motion to insert twenty-five cents per gallon was then decided in the negative. For the motion 57, against it, 64. The question was then taken on the motion of Mr. EPPES to insert fifteen, and decided as follows: For the motion 68, against it 62. So the House resolved that an additional duty on distillation of fifteen cents per gallon on the product of the still, ought to be laid. The committee then rose and reported the two resolutions agreed to in committee, and asked and obtained leave to sit again on the remainder of the report. Ways and Means. The House then resolved itself into a Committee of the Whole, on the remainder of the report of the Committee of Ways and Means. The third resolution came first next under consideration, in the following words: Resolved, That it is expedient to add one hundred per cent. on the present duty on sales at auction. Some conversation took place between Mr. WRIGHT, of Maryland, and Mr. EPPES, of Vir ginia, as to the equality of the general system of taxation proposed. Mr. Fisk, of New York, moved to amend the motion by striking out one hundred and inserting fifty per cent.; under the impression that the proposed increase would have the effect, by throwing sales into the hands of commission merchants, to diminish the present product of the tax. Mr. EPPES made some observations in reply. He saw no reason why, when other taxes were to be so generally increased, this item should be excepted. Mr. JOHNSON, of Kentucky, made some observations to show the extreme inequality and oppressiveness of the additional tax on distillation, compared with any other tax proposed, which he said, by the way, would, he feared, operate nearly as a prohibition of that manufacture. He was surprised, after gentlemen had so strenuously insisted on the enormous increase [H. OF R. of that tax, that they should oppose the paltry increase of the tax now proposed. Mr. Post made a statement to show that the increase of the tax would not increase the revenue at all. The only taxes, he appeared to conceive, on which solid reliance could be placed, to insure the requisite amount of revenue, were the land tax and the whiskey tax. The consumption of whiskey, he argued, would not be diminished essentially if it were taxed a hundred, instead of fifteen cents per gallon; and, whatever was the amount of that tax, it eventually came out of the pocket of the consumer, though immediately paid by the manufacturer. Mr. ROBERTSON, of Louisiana, expressed his regret at the sectional discussion of the taxes. He entreated gentlemen to abandon their local objections to the various taxes, as he should himself do. The State which he represented paid much more than a due proportion, according to its representation, of the internal taxes. But no system of taxation could ever be carried into effect in this country without a reciprocal spirit of compromise, which he therefore hoped to see superseding the local feelings which were displayed on this occasion. Mr. WRIGHT said, so far from entertaining any sectional feeling on this occasion, he was prepared to agree to the whole system proposed by the Secretary of the Treasury; but protested against dividing it, and taking it by piecemeal. The question on Mr. Fisk's motion was decided in the negative by a considerable majority; and the original resolution was adopted. was to add fifty per cent. to the present duties on The fourth resolution, "that it is expedient next considered, and having been amended, on the conveyance of papers and letters," motion of Mr. EPPES, by striking out fifty and inserting a hundred per cent., it was agreed to without debate. The next resolution, "that the carriage tax ought to be increased, and a duty on plated harness so imposed as to produce double the amount of the present duty on carriages," was agreed to. The next resolution that came under consid eration was, that "it is expedient to class the retailers of wines, spirituous liquors, and foreign merchandise, and impose an additional duty thereon of fifty per cent." Mr. POST vehemently objected to this tax as applying exclusively to one class of the community. Mr. WRIGHT and Mr. EPPES replied; and The resolution was agreed to without a divi sion. The next resolution which came under consideration was the following: "Resolved, That it is expedient to impose a duty on the following articles, viz: manufactured tobacco and snuff, in the hands of the manufacturer; candles, of tallow and spermaceti; hats; yarn, spun by the aid of machinery worked by steam or water; leather; pig iron; castings; bar, rolled and slit iron; and on nails made by the aid of machinery; on furniture above a certain value, except beds, bedding, and articles of domestic manufacture, in the hands of the owner; beer, ale, and porter, in the hands of the manufacturer; boots and shoes, above a certain price, in the hands of the manufacturer; on plated harness, in the hands of the owner; on vats for the manufacturer of paper; on saddle and bridles, above a certain price, in the hands of the owner; on gold and silver watches, in the hands of the owner; on pleasure horses, kept exclusively for the saddle or carriage; on playing cards, and on lotteries." Mr. EPPES, in pursuance of the further instructions of the Committee of Ways and Means, moved to strike out several articles of the above enumeration. The first he moved to be stricken out was cotton yarn. Mr. EPPES assigned as a reason for this motion the fear of destroying manufactures yet in their infancy, and information received that this manufacture was not as profitable as at first believed. Mr. GOLDSBOROUGH, of Maryland, objected to this motion, believing that no manufacture would better bear or be more able to pay a pretty considerable tax. [OCTOBER, 1814. tion. He was opposed to the tax, as an inquisition into private property; as vexatious, if the property was valued by inspection; and encouraging immorality, if valued by assess ment on the oath of the proprietors. He was opposed to it, because it would in fact operate as a tax on matrimony, from which those who lived their whole lives in violation of the first law of nature would generally be exempt. He considered it, too, in the nature of a direct tax, and which therefore ought to be apportioned according to representation. Mr. POTTER, of Rhode Island, also advocated the motion. The property proposed to be reached by this tax belonged generally to those who have seen better times, but, by the operation of the war, are thrown out of their regu lar income, and are many of them obliged to sell this very furniture to supply them with bread. Mr. GASTON, of North Carolina, also supported the motion of Mr. GOLDSBOROUGH, principally on account of the novelty of the tax, it being a tax never before laid, if ever proposed in any Government. There were other strong reasons against it, particularly the mode in which the tax must be assessed, &c. In opposing this tax, Mr. G. said he at least was not influenced by sectional motives, as it would fall as lightly on the section of country which he represented, as perhaps any other. He was opposed to any tax of a questionable expediency, because all the taxes were to be pledged to the public credAs a reason for this motion, Mr. EPPES as-itor, and would therefore be irrepealable until signed the great difficulty of discrimination be- his demands were satisfied. tween the large manufactories, and those of an individual or domestic character. The motion was decided thus: For the motion 74, against it, 46. So cotton yarn was exempted from taxation. The next article proposed to be stricken out was shoes. The motion was agreed to without a division. The next motion was to change the tax on paper vats to a tax of five per cent. on all paper manufactured. Agreed to, without opposition. The next question was to strike out lotteries; which motion was negatived without debate. Mr. GOLDSBOROUGH moved to strike out the furniture tax; assigning as reasons therefor its odious character, because rendering necessary valuations of property, domiciliary visits, &c. Mr. EPPES defended the tax, and stated that no inquisitions were intended to be made into property, the amount of which was proposed to be ascertained by voluntary declaration of the possessors. He considered it a very proper tax on luxury and superfluity. Mr. BARBOUR, of Virginia, also opposed the proposed amendment in an argumentative inanner, on the grounds of policy and justice, convinced as he was of the necessity of raising a substanial revenue to supply the wants and support the credit of the Government; he was opposed to the subduction of so great a proportion of the proposed amount of taxation as the erasure of this tax would occasion. Mr. B. spoke at some length and with much ability on the subject of taxation generally. Mr. WRIGHT supported his colleague's mo Mr. Hopkins, of Kentucky, in reply to the argument of novelty against the tax, said, that this had been frequently called the age of experiments. Our Government itself was a nov elty, which had established its utility; and there were many novelties as well of invention as policy, in our country, which reflected on it the highest honor; and he hoped this would be attended with the same result. Mr. BRADLEY, of Vermont, opposed the tax on furniture, principally on account of its difficulty, if not impracticability, of collection, as opening the door to fraud, perjury, and favoritism. Mr. OAKLEY, of New York, on the same side of the question, said he was opposed in principle to the tax, which he believed would not produce any thing like the estimated amount, He wished to dispense with this tax, and add the amount of it to the direct tax, or lay it on other articles. Mr. EPPES rose to defend this tax. He had no idea, when the United States had for years collected a revenue from imports of twenty millions of dollars, on the oaths of the merchants, that they could not collect a tax of a million of dollars from property to be valued on the oaths of the possessors. As to the tax dis couraging matrimony, and consequentiy popu lation, he denied this operation to it; because beds, blankets, sheets, and every article essen tial to these objects, were exempted from tax OCTOBER, 1814.] Ways and Means. [H. OF R. ation. He denied the inequality and oppres- On the question to concur with the commitsiveness of the tax. Its novelty was an objec-tee in amending the resolution, so as to increase tion, which would equally apply to various the direct tax 100 per cent. on its present amount, others, all internal taxes being new to the Gov-making the total direct tax to be raised six milernment. It was a tax the rich would pay, and lions of dollars— the poor be exempt from; and, therefore, he was in favor of it. Mr. GOLDSBOROUGH, of Maryland, opposed the tax, on the ground that the country was not adequate to pay it without oppression, if not absolute destruction. The question on inserting 100 per cent. in lieu of 50, was decided as follows: For the amendment 100, against it 38, as follows: Mr. Post stated that, in collecting the duties on imports, there was a collateral examination of goods entered to verify the statement made on oath; so that the gentleman was mistaken in likening the mode of collection proposed to that existing in relation to import duties. Mr. P. again insisted on the propriety of laying the whole amount of tax on the direct and distilla-y, tion tax. Mr. GASTON of North Carolina, spoke a few words in explanation, and Mr. EPPES replied. The House then decided on Mr. GOLDSBOROUGH's motion, as follows: For the motion 51, against it 69. So the committee determined to retain the tax proposed to be laid on furniture. Mr. OAKLEY moved to strike out the duty on tallow candles in the hands of the manufacturer. He conceived the tax would be rendered nugatory by the increase of domestic manufacture, and the very poorest people only, those who are unable to purchase materials for making candles, will pay the tax. The motion was negatived-40 only rising in favor of it, 66 against it. Mr. BIGELOW, of Massachusetts, moved to strike out the article of leather. His objection was that leather was an article of first necessity, of which the poor consumed nearly as much as the rich, and which, therefore, ought not to be taxed. The motion was negatived-30 only rising in favor of it. The question on the resolution, as amended, was then decided in the affirmative. The next and last resolution was in the following words: "Resolved, That it is expedient to establish a National Bank, with branches in the several States." The House decided on this question without debate For the resolution 66, against it 40. The committee then reported the several resolutions as agreed to, with the amendments made thereto. The resolution for increasing the direct tax came up for concurrence. The resolution, as reported by the Committee of the Whole, proposes to add 100 per cent. to the present amount of the direct tax. Mr. OAKLEY moved to amend the resolve, by inserting one hundred and fifty in lieu of one hundred, so as to make the present amount of that tax 150 per cent. ; in other words, to lay a direct tax for the ensuing year of seven and a half millions. This motion was negatived: For the motion 20, against it 116. So Mr. OAKLEY's motion was lost. YEAS.-Messrs. Alexander, Alston, Anderson, AveBarbour, Bard, Barnett, Bayly of Virginia, Bowen, Bradley, Brown, Burwell, Butler, Caldwell, Calhoun, Cannon, Chappell, Cilley, Clark, Comstock, Condict, Conard, Cooper, Crawford, Creighton, Cuthbert, Dana, Davis of Pennsylvania, Denoyelles, Desha, Earle, Farrow, Fisk of Vermont, Fisk of New York, Forsyth, Gholson, Goodwyn, Griffin, Grosvenor, Hall, Hanson, Harris, Hasbrouck, Hawes, Hawkins, Hopkins of Kentucky, Hubbard, Humphreys, Hungerford, Ingersoll, Ingham, Irving, Jackson of Rhode Island, Jackson of Virginia, Johnson of Virginia, Johnson of Kentucky, Kennedy, Kent of New York, Lefferts, Lowndes, Lyle, McCoy, McKee, McLean, Kerr, Kershaw, Kilbourn, King of North Carolina, Montgomery, Moore, Newton, Oakley, Ormsby Pickens, Piper, Pitkin, Pleasants, Potter, William Reed, Rhea of Tennessee, Rich, Ringgold, Robertson, Sage, Schureman, Seybert, Sharpe, Sherwood, Skinner, Smith of Virginia, Strong, Tannehill, Taylor, Telfair, Thompson, Udree, Wilson of Pennsylvania, Winter, Wright, and Yancey. NAYS.-Messrs. Baylies of Massachusetts, Bigelow, Bradbury, Brigham, Caperton, Champion, Culpeper, Davenport, Ely, Eppes, Forney, Franklin, Gaston, Goldsborough, Hale, Hulbert, King of Massachusetts, Law, Lovett, Macon, Markell, Moffit, Mosely, Pearson, Pickering, Post, John Reed, Ruggles, Shipard, Smith of New York, Sturges, Vose, Ward of MassaWilson of Massachusetts. chusetts, Webster, Wheaton, White, Wilcox, and The question then being on agreeing to the resolution as amended, going to increase the present direct tax, as before stated, and the yeas and nays having been demanded thereon Mr. WEBSTER, of New Hampshire, said, the proposition was to grant a new land tax, of twice the amount of the last. Before he gave his vote, he wished to be permitted to state the reasons which would govern and decide it. It had often happened that public bodies, or the majorities in public bodies, having the general power of adopting laws and resolutions binding on and controlling the whole, had supposed themselves capable of reducing dissenting members to a situation, in which any course of conduct pursued by them might be liable to unfavorable construction. But cases of this sort, attended with real difficulty, he thought to be rare. At any rate, the present occasion presented no such difficulty. He did not feel himself under the necessity, either of obstructing the passage of the taxes through the House, or of taking upon himself any portion of the responsibility of laying them. H. OF R.] Ways and Means. [OCTOBER, 1814. adoption or rejection on his vote, he should A case might arise, in which it would rest with those who have been in the minority of the House, on leading measures of Government, to say whether the supplies should be granted or withheld. Whenever such a condition of things shall happen, it will bring its own rule of action along with it. At present, no such case exists. It is not put to us who opposed the war in its origin, and have steadily reprobated the manner in which it has been prosecuted, to say now, whether a burdensome system of taxes shall be imposed on the people to replenish the exhausted Treasury. That is for those to determine, who have made the taxes necessary. Our votes are not asked for now, any more than they were upon the declaration of hostilities. It was not then left for us to say, whether there should be war. It is not left with us now to say, whether there shall be taxes. Those who took upon themselves the responsibility of the If it was said, continued Mr. W., that pub first, must bear also the responsibility of the lic credit depends on adopting this system of last. And it must be presumed, that gentle- taxes, and that it cannot be refused without men are ready and willing to sustain the con- refusing the means of restoring public credit, sequences of their own measures. Whoever has he certainly hoped that gentlemen would adopt power to grant revenue, has also the power of that system of finance which suited them best, directing its expenditure; and if the question of as well for the restoration of the public credit, supplies or no supplies, should ever come to as for other purposes of Government. rest on the decision of those who have hereto- did not wish to limit their choice. He only fore differed in opinion from the course pursued disclaimed any share in the responsibility of by the Administration, they then will be able measures, in the production of which those to accompany the supplies with such other whose political opinions he respected had no measures as shall insure the appropriation of concern. A high public credit was one of the the revenue to proper objects, and place its ex-treasures which the country had committed to penditure in competent hands. But if we were now to say, we will vote for the taxes, if the Administration will apply the means which we shall grant it, to proper and sensible objects, and will call to its aid, in this exigency of affairs, the most prominent men in the nation, without regard to political party or connection, we should be told-" Gentlemen, you are very obliging, but we happen to be able to carry through our taxes upon our own strength. We do not choose to submit to such terms and limitations as you propose, and must beg leave, therefore, to dispense both with your conditions and your votes." If, he said, the taxes depended on his vote; if the Administration could show it had made fair and reasonable offers for peace, which the enemy had refused; if it would now consent to apply its means to the first great object of all Governments, the protection of the people, to carry on the war in a manner agreeable to the common sense of the community, and would endeavor to call forth the talents of the nation to aid the cause of the nation, most assuredly he should vote for whatever supplies the occasion called for. He should only be anxious in such a case to grant enough; because he did not represent those who would weigh, very scrupulously, essential national rights and national security against the price necessary for their preservation. But as no such change of system is intimated, and as the system of taxation now proposed does not depend at all for He the hands of the present Administration. How they are to restore it, buried as it now is under a mass of depreciated stocks, unfilled loans, discredited Treasury notes, debts unpaid and debts unliquidated, they must determine for themselves, looking to that account to which the country may call them. It was worth our while to inquire, how it has happened that public credit has received such a tremendous shock. Whose is the fault? When those measures were begun, which have at length brought us where we now are, the public credit of the United States was as high as that of any nation on earth. To whom are imputable the shame and disgrace of its prostration and fall? To what is it owing? Not to any deficiency in the national resources to sustain the credit of the Government. Both the Secretary of the Treasury and the Committee of Ways and Means tell us, and they tell us truly, that the real means of the nation have been abundant. If, then, the Administration received the public credit in a high and honorable condition; if the nation has at all times possessed the means of keeping it so, and the Administration has possessed, as it has, a sufficient control of these means; and if, after all, the public credit has gone to fearful wreck and ruin, who alone is answerable for such a state of things? or who can refer our present condition to any other cause than an incompetent management of the powers of Government? The basis of public credit is confidence in the national resources, in |