Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1814-11-12
r 9CHMOND-sA H{RDAY, NOVEMBER "a Dolls
asso,sso

would then stand thus:
Amount contracted for 1880. SOC
loss. 90 per Ct. on that
sum 5S6. O6O
8 per cent nm the SUN
OF 8, 7as,ose zss.604
LOT opc per cent
| commissions 1896
Total loss ON Cd contract ----------.i..s7s 900
Arnnpr, Of stock to be created BY
| the second contract s 4,3e7, 900
II would thus appear, that the premium,
in TACT paid by the government for the sum
of s $3.50, 90. was I. 376 900, or very near>
" nifty per cent. When Mr. O. said, the
: Treasury was reduced to the necessity oil
negotiating loans on terms ike these. il re
CURED no argument TO prove that the finance
and credit Of the nation were ina state Of
Lu ter ruin.
He had Stated the ia of one per cent OF,
she emount Of he cantracts as one item Of
the loss. That was allowed by thc!aw au.
thcrisiag the loan as a commission to any
person, who should collect subscriptions from
others. and was not intended to be given on
any sum which the contractor might offer
Tor his own benefit Il would-be seen by a
reference to the report of the late Secreta-
~ Of the Treasury, that tnors than one half
OF the first contract for 8 9,795. 05s was ta-
ken by an Individual. for any thing that ap.
Peared, on his own accnunt--yet the COM
mission had been allowed to him, and in>
deed, had been expressly stipulated for in
his written proposals, which could not have
been necessary, had he been entitled to it by
terms of the law. He could not therefore
help thinking. Mr. q. said.- that in this in
stance, il had been paid contrary to the spir.
It. and indeed, to the plain letter of the
law.
Mr.. O. said he had entered into these
details for the purpose of showing to the
committee that total Sc immediate change
in the system of finance hitherto pursued by
tue administration was absolutely necessary.
II was che FIRST step towards that reform in
the management OF the finance (which could
alone restore and maintain the public credit,
Gentlemen must resort now 70 what it was
taeir duly long ago to have adopted-a sys-
tenn OF direct and internal taxes, sufficient
~ extended, to form the basis of loans. To
M axe that basis firm, the proceeds of the
taxes must be adequate, not only to pay
the interest, hut to const;tu e a certain fund
tor the reimbursement Of the principal
And must be specially pledged TO the pub
lic creditor by Law. Had this system been
pursued from the beginning, a much small
Ter amount OF taxes would have been neces-
sary TO support public credit, than are now
demanded to restore it. In proportion as
the state OF the finances was desperate the
more vigorous must be the remedy applied
| for their relief.
In any such system of revenue. MrO.
said the direct tax was undoubte ily a prip.
Icipal feature He had always thought. tina.
IN all Countries land was the legitimate and
proper object of taxation, whenever the
public exigencles require it. But in this
l country there were some reasons vkich, in
has Judgement, rendered it peculiarly so.
| BY the constitution, direct taxes we're an.
| portioned among the several states accord>
Ing to their Representation in that house.
The representation of the states holding
slaves, it was we'll known, was greatly in
creased by that species of population. 1t
was therefore provided by the constitution,
that they should pay a greater proportion
OF every direct tax, as an equivalent for the
| undue weight, which they thus acquired in
the government. The chairman ofthe com.
mittee OF ways and means had said tina. the
direct tax was unequal and therefore obiec-
tionable being apportioned among the
states according to population, and not ac-
ccrding towealth. In any ether state of
things than that presented by the constitu.
| ton, the remark would be correct The
trainers OF that instrument intended that it
should be unequal, and that it should enter
as principal part into every system of exs
traordinary, if not ordinary taxation, to
which the country might be compelled to re-
sort,
He was therefore, Mr.. o. said, in favor,
of continuing the direct tax, and of increass
ing it beyond the amount proposed bv the
| committee of Ways and Means Indeed, so
just in political point of view was it, and
so much 10 conformity with the spirit of the
constitution, that he thought much the erea-
fer part of the revenue now required ought
TO be raised by that tax alone that it could
be extended greatly Beyond the amount
proposed, did not admit Of a doubt If gen.
tlemen would advert to the document from
the treasury laid ON their tables that morn
ing they would find, it they would make the
necessary calcu atoms, that in those states
where the valuation of houses, lands and
slaves, had been made in pursuance of the
| existing law, the aggregate proportion of the
tax to the amount of the valuation was exs
tremely small In New Hampshire il was
about 26 cents in the 100 dollars--in Mas
sachusetts about 23--in Vermont about so
lin Rhode Island I6---in Connecticut 49,
in Ncw York 2s--Delaware 22-Maryland
14--North Carolina 20--and Tennessee a.
| bout %. Thus in no case was the present
direct tax as high as As of one per cent. on
Tn amount OF valuation, and in some il Was
no more than abont one eighth of one per
cent.--And the average rate Of the tax in
all the states he had named, was NOT more
than one fifth Of one per cent. When it was
| considered that the valuation was ip fact in
| all CAGES much below the real intrinsic worth
OF the property, it must be apparent that
| the present tax could be greatly increased