United States oracle and Portsmouth advertiser — Portsmouth, N.H., 1802-05-15 00:00:00, page 1

7
Li
THE notion before the House, is
to itrike out " carriages" from
the present bill. On this limited mo
tion I did not expect that gentlemen
would have gone extensively into a con
fid^ration "of the internal revenue, but
would have confined their observations
to the branch of that revenue, which
is brought, by the motion, immediate
ly under confederation. Under this
impression, when I submitted this mo
tion to the House, I confined my re
marks to what I deemed the most pro
minent considerations which might in
duce the House to retain the tax on
carriages. Since, however, it has been
thought proper to speak at large of the
Internal Revenue, it becomes necessary
to follow gentlemen in this course, and
to present to the House, as far as We
are able, both tides of the question.
But before I enter into this exami
nation, I must be permitted to fay, iri
answer to two gentlemen from Massa
chusetts, that .the clergy of New-Eng
land are not paupers, as one gentleman,
(Mr. Bacon) has insinuated. I fay,
that the clergy of New-England ate
not paupers; they are both able and
willing, to pay their proportion of the
public burthetis, whether those burthens
fall on carriages or on any other de
faiption of property. Nor is it true,
as the other gentleman,(Mr. Varnum)
has said, that the date of Connedicut
does not pay her proportion of the car
;iu,e rax. Sir, it will appear froth the
treasury report on your table, that
Connecticut pays more than her pro
portion. of this tax, although the excess
paid by that state, is not so great as the
excess paid by Maffaehufetts. I have
thought it necdlary to make these 6b
fervations for the purpose of repelling
the imputation w hich has been attempt
ed to be thrown bn the clergy of New-
England, and those who fapport them,
and to remove the suspicion, which
might otherwise be entertained that my
colleagues and myfelf feel a particular
inhered in retaining this tax.
Mr. Speaker, I am opposed to the
repeal of the tax on carriages, and all
the other branches of the internal reve
nue, because I believe that these taxes
cannot with fafety be dispensed with ;
because I believe them to be teafimable
—because I believe them attended with
less expense in the collection than the
import ; because I believe fcm neces
sary to equalize the taxe, upon the
community ; and becauf&T believe, if
any taxes can be dispensed with, the
preference ought to be given to those
parts of the impost which fall upon the
ngceffaries of life.
For the purpose of explaining the
grounds on which I have formed the
opinion which I have now expressed, I
must take the liberty of examining the
probable product of the revenue, which
it is proposed to retain, for the eight
enftfogyears; the expenditure towhich
the government must probably be fub
fefted within the fame period, and the
expense which his arisen, and must a
rise, in the collection of the import,
contrasted with the expense attending
the collection of the internal revenue.
It must, however, be underwood,
that in estimating the receipts and ex
penditures of the government for any
future period, we can only be govern
ed by conjectures, drawn from what
now is, and what in part times has been.
It ought not, however, to be forgotten,
that it is always imprudent to depend
upon a calculation of receipts, beyond
that point to which they will with cer
tainty be carried ; because a surplus of
revenue, if it should arise, may be well
Applied to the extinguifhment of debt,
whereas a deficiency, if it exists, cad
not be easily supplied.,
I have mentioned the period of eight
years, within which to make my cal
culations, because the foreign debt &
temporary loins, must, within that
time be discharged ; and the expendi
ture, of course, must be much greater,
on account of the debt, than it will be
afterwards; and although it is proba
ble that taxes may be reduced after
that time, if no events should arise to
ffcreafegcur expense, yet, in my opin
H6USR OF REPRESENTATIVES.
WASHINGTON, THURSDAY, MARCH >B.
Mr. GRISWOLD's SPEECH,
On fc repeal of the Internal Taxes.
MR. SPEAKER,
AMERICAN INDEPENDENCE, TWENTY-SIXTH YEAR
Vol.Xll.) SATURDAY, MAY 15; 1802.
Os ALL THE DISPOSITIONS AND HABITS WHICH LEAD TO POLITICAL'}
prosperity, RELIGION AND MORALITY ARE indispensable [
SUPPORTS. WASHINGTON'S LEGACY J
P^RTSMOU TH, N.H. Printed and Published every
©nites States
Portsmouth
CONGRESS.
It will be remembered, that these fix
years included a period of war, during
which time the productions of this
country commanded a much higher
price in foreign mark ets than they can
command in time of peace, and the
quantity demanded was likewise great
er. The sales of our productions hav
ing been better and more extensive,
heceffarily enabled the people to pur
chase and to cohfume a greater quanti
ty of foreign goods than in ordinary
times. The carrying trade likewife,of
this country, has brought, during the
fame period, a great deal of wealth
from foreign countries into this, and
also increased the ability to purchase &
to cohfume those eoods on which the
import is paid. But, as^our receipts
from impost are regulated by bur cori
fumption of foreign goods, it follows;
that a diminution of consumption will
diminish our receipts. And I think it
cannot be doubted, but the return of
peace must diminilb the ability of in
dividuals to purchase foreign goods,
and of course must diminish our con
sumption.
It will likewise appear from the trea
sury statement that many of the items
which compose the aggregate of import
must necessarily diminish upon the peacte,
and that one of them must be entirely
extiriguifhed. The sum which has been
retained from drawbacks during the
war, and which amounted to 86,000
dollars per annum, cannot be received
in time of peace, because this tax was
altogether a charge upon the carrying
trade, being a proportion of the duties
on goods imported into this country,
which were retained from their re-ex
portation for foreign consumption: and
as the carrying trade itfelf must neces
sarily go down iri time of peace, it fol
lows that the tax oh that trade must go
with it. It will not, I presume, be
said, that this trade can be kept up—
that it will be in our power to import
from the East and Weft-Indies goods
for the consumption of Europe, or that
we shall import from Europe and the
East-Indies goods for the consumption
of the Weft-Indies and the American
colonies. Indeed this tax upon draw
backs was intended to be temporary
when it parted. It was known that it
would expire with the war. Nor can
it be doubted,but that the consumption
of foreign manufactured goods Will di
minish ; because, in addition to the ef
fed which must be produced by the
general decay of the income of indi
viduals, it will be remembered that the
high price which our own goods com
manded, rendered labour much more
productive when applied to agriculture
than to mechanical pursuits ; the con
sequence of which was, that the do
mestic manufactures of our country 1
were negle&ed, and the labour of our
farmers was all applied to the cultiva
tion of the earth, in consequence of
which the consumption of foreign man
ufactured goods, as appears by the trea
sury statement, arose during the war
out of all proportion to the increase of
population. But the moment peace
returns, ?nd the price of our produc
tions faffs in the market, domestic
manufactures will revive, and the fami
lies of our farmers will be again cloth
ed with domestic goods.
Again, the duty on wines, during
the three years taken in the treasury
statement produced only 317,000 dol
lars per annum, whereas it annually
ion,it is imprudent,to repeal them now.
The treasury statements exhibit two
views of the receipts from impost and
tonnage, calculated upon the present
scale of duties; the firft includes a pe
riod of three years, from 1790,10 1792,
inclusive ; the second includes ^peri
od of fix years, from 1793 to 1799, in
clusive. The average receipt from im
post and tonnage, calculated on the
present rate of duties, would have been,
during the firft period, 6,153,000 dol
lars per annum. And the averagere
ceipt, calculated on the fame principles
would have been, during the second pe
riod, 8,350,000 dollars per annum.—
Now,fir, as it is not possible to increase
the impost, I do not think that it can
be fafe to calculate for the eight ensu
ing years, upon a higher sum annually
than the fix years contained in the trea
sury statement would have produced.
Indeed there are many considerations
which will lead us to doubt, whether it
is fafe even to calculate upon that a
mount.
produced, during the fix years, 714,000
dollars. This rapid increase of the
consumption of vine, undoubtedly a
rose from the increased ability to pay;
but I presume it can fc/redy be im
agined, that the .--id. ^<v will con
tinue at the present rate ; because the
article being a luxury, must be consum
ed only in proportion to the ability to
pay, whilst the people of this country
were We,from the extraordinary value
of their own productions, to purchase
wines, they indulged themselves in the
use of them, but that indulgence must
be checked as our goods fall in the
market.,
It will, likewise, appear, that the pro
duft of the duty on sugar, was incieaf
ed, between the two periods, from
560,000 dollars, to 903,000 dollars per
annum, and that the consumption of
coffee was increased nearly in the fame
proportion. Now, fir, can any gentle
man believe that these taxes will re
main as productive, during the eight
years to come ? It is true that sugar &
coffee may, in some refpe&s, be consid
ered as necessaries of life, yet, in other
refpeds, they must be considered as
luxuries, and,although the consumption
can never be entirely dispensed with by
the poor, yet it may, and must be, di
minished as the ability to pay declines.
I might, in this manner, go through
with the various items which compose
the account of duties, and show how
far the consumption of each article
will, probably, be effected by the peace.
But such a detailed examination can
not be necessary, as gentlemen have be
fore them the tables, in which every
article appears, and can judge, with as
much accuracy as I can, of the effect.
I will, however, just observe, that, as
the duties, on a great, proportion of
these goods, are extremely high in pro
portion to their value, and, in many
cases, in proportion to their bulk, it is
dearly certain, that, if the whole duties
are retained in time of peace, the temp
tation to smuggle will be too great to
be refilled. These high duties operat
ed without injury during the war— ’
whilst the neutral situation of this coun
try gave such an unusual activity to our
agriculture and our commerce. , The
importers of goods fcartely enjoyed
fufficient leisure to think of ffauggling;
the profit, which attended their busi
ness, created no necessity for evading
the duties, and the honour of our
merchants, combined with these causes
has, hitherto, secured a more faithful
payment of the impost, than was ever
experienced in any other country. —
But, when the embarrassments which
the peace must produce, press hard up;
on the mercantile part of the commu
nity, and the price of dutiable goods
falls, and the duties, of course, bear a
higher proportion to the value, the
temptation to smuggle, will, it is to be
feared, in many cases, become irresisti
ble.
If I am corre&, iri the view which
I have taken of this part of the fubjeCt
it follows, that yon cannot calculate,
with any fafety, even Upon so high a
revenue from impost, as was produced
during the fix years which have been
taken, much less can you calculate up
on a greater sum.
The secretary of the treasury, how
ever, has grounded a calculation upon
the idea, that the consumption of for
eign g°°ds, and, of course, the revenue
from impost, will keep pace, in this
country, with population. In this hy
pothesis, I disagree, entirely, with the
secretary.
There is no principle better confirm
ed by experience than this—that the
consumption of foreign goods, in all
countries, for any given period of years
must be limited by the ability of the
people to pay for them. Now, fir, al
though I admit that the population of
this country must proceed with great
rapidity, yet, I deny that the ability of
the country to pay for foreign goods
will be thereby elfenually increased.—
How are you to pay for foreign goods ?
Hov, fir, but by the sales of your own
goods in foreign markets, and apply
ing the proceeds of those sales to the
payments abroad ? Now, fir, although
your population will increase, and if a
market could be had, the productions
of this country would keep pace with
population, yet, it is certain, that the
demand for your productions cannot
be increased in foreign countries. We
have, for many years, been fully able
essentially increasing, nor will it great
ly increase in the Weft-Indies, or in
I those American colonies who depend
upon us for their supplies. How then
! arc we to fell more goods, if the pur-
Ichafers and c@ffimers are not increas
ed ? For it will b^ remembered, that
the goods of this country do not con
fid of those expensive articles, which
are consumed only in proportion to
wealth ; but of raw materials,for manu
facturers, and the necessaries of life—^
The consequence then, which will re
sult from an increase of population in
this country, cannot be an increase of
our own sales; for, although we may
raise more rice, flour, tobacco, provi
sions, and take more fifh than former
ly, yet we cannot dispose of greater
quantities of those articles, in foreign
markets, than we formerly did. Qur
ability, therefore, to pay for foreign
goods, will not be increased, either by
the increase of population or the mul
tiplication of our productions ; but
these circumstances will only tend to
depress the price of these articles, both
at home and abroad, and to establish
manufacturers within our own country,
and to supply us with goods which we
cannot pay for to foreigners.
There is a further circumstance, which
ought to have been before mentioned,
which increased our ability to pay for
foreign goods, during the 6years which
were taken a* the basis of our calcula
tion. It was the funding of our nation
al debt. That debt has formed a very
important article of remittance, and
I has gone to pay for many of the goods
;which have been consumed, in this
I country, for the last ten years. But I
;truft we shall have no more national
I debts to fund —we can remit no more
Rock to Europe, and the payments
which must be made to Europeans for
the stock already remitted, will be a
drawback on our means to pay for new
goods.
Believing then,for the causes which
I have explained, that we cannot, with
fafety, depend upon a greater receipt
from impost, than the fix years would
have produced, it follows, that, in my
judgment, we cannot calculate, that
the impost, for the eight ensuing years
will produce a greater sum than
8,350,000 dollars, per annum. But
for the purpose of taking round num
bers, I will put the import at 8,550,000
dols. In addition to which the secre
tary has calculated 400,000 dollars,
annually, from the sales of weftern
lands ; and, although I am of opinion
that the lands will not produce so great
a fufa during the whole of the eight
years, yet I will take the estimate of
the secretary as it stands. Besides the
foregoing fums,we may estimate, 50,000
dollars from the poft-office, and 71,000
dollars from dividends on bank stock.
And here, fir, you have the. whole of
the revenue which it is proposed to re
tain, except, indeed, a small sum from
patents, fihes, &c. which arc too incon
siderable to be drawri into calculation,
and the aggregate is only 9,071,000
dollars.
I will now enquire into the probable
expenditure of .he government, for the
fame period of eight years.
The Secretary of the Treasury, in
his report, has calculated on the pay
ment of ~300,000 dollars, annually,
on account of the principal and inter
est of debt, but, as the engagements of
the government do not absolutely re
quire the payment of this sum, I will
only take a sum, which is absolutely
neceflary to be paid, within the period,
to meet our engagements with our cred
itors. And here it will be found, that
including- the reimbursement of the 8
per cent" flock, which ought to be in
cluded, becaufejt was a war loan,bears
a war intereft,and ought to be discharg
ed the moment we are permitted to do
it, that, during the eight ensuing years,
the payments to our creditors will, on
an average, exceed 7>°°°>°°° dollars,
per annum. I will, therefore, only
take into calculation, the sum of seven
millions, on account of the debt. The
civil lift has been estimated at 780,000
dollars. Foreign intercourse. including
all payments to the Barbary powers,at
200,000 dollars. All these turns are
estimated, by the Secretary himfelf,and
I presume, placed as low, as they pofli
bly can be. The military eftabliffiment,
to supply, in time of peace, the foreign
demand for onr goods, and it is certain
that the population of Europe is not
FEDERAL GOVERNMENT, FOURTEENTH KE^
———____.______—^ ^ ___________
Saturday, Morning, by WILLIAM TREADWELL, &C^
PRICE I DOLLAR 50 CENTS Per Annum. [No. 33
f^ADVERTISEMENTS reasonably (^conspicuously isertea—COMMU^
; NICATIONS duly attended to—ard every FAVOR THANKFULLY
I ACKNOWLEDGED.
. ©Macle, anti
Advertiser.
at the commencement of the Affton;'
was estimated, for the current year, at
1,420,000 dollars, and, although, dur
ing this year, in consequence of the re
duction of the army, some part of this
expense may be saved, yet I fubmit.to
gentlemen whether we can, with ariv
fafety, or propriety, calculate, that dur.
ing the eight ensuing years, the annual
expense of the army will fall Ihort of
this estimate? Gentlemen ought to con
fider who our neighbors now are, and
who they probably will be, within a
short period. They ought th confide?
the incidents to which every nation is
exposed, the necessity, which probably
will arise, of defending the Miffifippi by
strong g^rrifons, and of increasing our
foree on the sea-board, within this pe
riod, and when they duly appreciate
these considerations, they will fay
whether an estimate for an army of 4
or five thousand men, is too large ?
At the beginning of this feflion, the
estimate for the navy, was reported at
1,100,000 dollars. This estimate has,
however, within a few days, been re
duced to 900,000 dollars. But fir,
how has this reduction been made ? It.
has been made by deducting from the
estimate, for the 74 gun ships, 150,000
dollars, and reducing the estimate, for
navy yards, &c. to 50,000. Why, fir,
upon these principles, we may reduce
the expense of the navy to a cent. Wg
may give up our Navy altogether. We
may burn our ships, or deliver them
over as a present, to our fitter Repub
lic. It is easy to reduce expense in this^
mode. But, fir, is it not a little aston
ishing, that the estimate, for the seven
ty fours, and for docks, faould at this
time, be reduced, when the time is fiv
favorable for collecting materials for
large ships, and when we do not possess
a single dock in which a large ship cam
be, conveniently, repaired, and the cost
of one dock, for that purpose, would
surmount the estimate?
I trust, however, whatever may be
the estimates for this year, that the peo
ple of this country are not ,repared to
give up our navy, and with it, the pro
teftion of commerce; but that we fhaU
regularly progress in this establishment &
as our means will juftify ; and, if so,
we canriot expert to expend less than
the amount of the firft estimate, which,
in my opinion, is less than the estab
lishment will require.
If then we add the firft estimates for
our military and naval service, to the
former items of expense, the aggregate
will be 10,500,000 dollars. But, if
the opinions of gentlemen, who sup
port this bill, shall be deemed more
correct, and we deduct the sum of five
hundred thousand dollars, on account
of the contemplated saving in the mili
tary and naval establishments, still the
expenditure will amount to ten millions
of dollars, per annum. Compare this
with your revenue of 9,071,000 dolls,
and the deficiency will be more than
nine hundred thousand dollars, per
annum.
Gentlemen will likewise observe, that
in these calculations, I have made no
allowance for that infinite variety of
contingent events, which are constant
ly arising in .every government, which
we cannot expea to escape, for which
we ought to be prepared, and which
must be, annually attended with drafts
upon the treasury.
If gentlemen confider this fubjed ns
I do, I cannot believe that they will
consent to give up the carriage tax, and
all our internal revenue, when it is as
certain, as any event depending on cal
culation cap be, that the money will be
wanted to meet the expenditures of the
government. N '
I am well aware, that the wisdom of
the former administration has left our
finances in a state of great prosperity ;
that the business of the treasury has
been, formerly,conduced with so much
(kill and wisdom, that our taxes have
become produaive, and that a surplus,
at this time, remains in the treasury of
nearly-three millions of dollars. And
I am likewise perfectly sensible, that
this large balance in specie, now on
hand, together with the large receipts
from the impoff, during the current
year, which must arise from the war
importations of the last, will enable the
government to meet its probable
wants for two or three years to come,
and that the deficiency may, in this
manner, be made up until a new Pre
fldCTial election returns# But I c&v-