Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-05-20

is. syery rsssuic beafieg caiSnsivciy upon raIoud
md somelmcs conflicting ntctesls; ct cfeasing PER
har, ri,t m9re psorTicy In this instance, OF con''c.
inc opinions ought 10 be Observed IN this respec'
and ilis ony can the great principles which entered
INTO the Compoo,se acI be substantially carried out
The system Of cash duties, although material con-
dition in the arrangement OF the Compromise act, must
now stand upon lis own intrinsic merits In TINS We"
alone i, is recommended 10 Congress. The abolition
or cusom house credits is measure sustained by rea
sons which appear the Departmental De conclusive
In order to appreciate the advantages of cash sys'
tenn. i, NAV be we'll TO premise that more than one
half of all the imports from Europe, and consider
able portion of those from other countries, are on To-
reiGn account. la some branches of The import bus-
ness silks, for nstance) American merchants have
uiyen place almost entirely, TO foreigners The causes
which have induced this state Of things are various,
and may not be equally operative It's believed, now
ever hut among these causes, our credit system may
moi have been without some influence. But, waving
all discussion of this point at present. the fact that
60 LARGE an amount of the import business is now IN
foreign hands, and that the advantages, If any, OF the
credit system accrue in great measure to ihem IS
ration not to be dsrcgarded Another consi-
deraon of great weight in this matter IS the crcum-
that the fluctuations and revusions frequent
~ experienced great marts OF foreign commerce,
the effects OF which have been as often felt throughout
the whole country are to be ascrbed TO some extent to
the facilities afforded by system OF custom house
credits, lHey are, lol vi
money to the amount Of the duties, by the Govern
nent, TO the importing merchant. The credit itself
becomes capital in trade, and serves TO stimulate and
progressively enlarge that portion of the import BUSH
ness which rests wholly on fictitious basis
IL NAV he true that men OF small capital, or without
anv CAPITAL at all would be benefited by obtaining
dit from the Government; but 1t IS not less true that
the claim 10 this extraordinary indulgence, if it exists
at all, attaches solely 10 the American merchant and
belongs in no way to foreigners. II is, moreover, wor
,l,,, oft h trnde
when foreign supplies really called for by the wants
of the country the Of paying the duties are en-
sured by the prospect of ready market, or may be
obtained upon the credit and responsibility OF the i'm
porter in the community where he resides II he Does
not possess this credit responsibility among his
nciphbors there appears very good reason why he
should be trusted by The Government. The security
which he offers in the wouldb be equally attain
able in the other.
The system of credits, established in the infancy of
our commerce. when there but little capital in the
country and the import business a footing
totally different from what it now is might have been
productive of real advantage But the slate of things
which attended lis establishment no longer continues
Capital is sufficiently abundant for supplying the
country with foreign products, and much of the trade
itself has been shifted from American TO foreign hands.
Among the direct advantages expected TO arise from
the cash system is its tendency TO check overtradng,
and to restrain mporations within l'mits indcaled ny
the wants of the country and the probable amount of
its exchangeabe surplus II needs no !abored argn
ment or research TO prove that the present embarass
ment in all our departments OF labor ard enterprise
have arisen very much from overtadlng, nor does
require much discussion 10 show that the spirit of over
trading and reckless adventure has beer favored by
the system Of custom. house credits.
Another advantage of the cash system, no less OBJ
vous is the reduction OF expenses incident to the COL
lection of the The number of custom house
bonds outstanding and unpaid is very great and the
amount of money lost through the bankruptcy of i'm
porers and their suretes must amount TO some mil
lions There is reasonable probability that such
losses would hereafter. Add to this the
expenses Of gaton which, in many cases, are enor-
nous.
Connected with the subject of cash duties is that of
the waehousng system, to which the attention of the
Department has been anxously directed. The ConstI-
tuition Of the United States, article ], section y de-
cares that 'no preference shall be given, by any re-
cuation Of commerce revenue, to the ports ct one
State those of another.
1t is manifest that under this restraint, warehousng
system, if established, must be universal Regarded
this light the policy of the measure, well as the
expense attending its practical operation, are m;tters
of grave importance, and require more consideration
than has been in the power of the Departmental be-
stow upon them. The whole subject is therefore lett
TO the better judgment of Congress.
Some notifications proposed Of the laws resulat
ing the drawback of duties. The time within which
goods can be exported for the benefit of drawback is
found by experience to be unnecessarily long. The
bill proposes one year, US in the earlier laws !: pro-
also, 10 retain, as formerly, Tor the use OF TO-
yernment, and to reimburse expenses incurred, two
and half per cent of all drawbacks of duties goods
imported other than foreign refined sugar, in respectful
which it has been thought necessary to retain ten per
of the drawback order TO prevent or check the
interference which would otherwise take place with
CONNIE rcal and manufacturing interests The dnw-
back sugars refined and spirits distilled from uoas
in the United States has also been modified accord
ing to the proposed changes in the rates of duty.
Suggestions from various quarters have been made
TO the Department. as 10 the policy of extending our
system of drawback upon certain articles Of domestic
ufacture, 10 embrace articles manufactured
from hemp, iron and wool, and to allow upon the
export of those articles, when manufactured solely
from foreign mate rails, drawback equal nearly
equal in amount TO the duty paid on the importation
of such materials. The interests of commerce and ma
vigatIon would no doubt be promoted by the adop.
ton of some such system that above recommended,
while at the same time it would proporoaably
enlarge the sphere of manufacturing labor. The
objection which is understood TO have been urged
against this system that it cannot be so guarded oy
legal provisions the against frauds
The answer has BEEN that the exposure othe revenue
to Frauds under the operation Of the scheme referred
to- would be no-greater than that which attends the al
I lowance of drawbacks upon the manufacture OF re-
fined sugar and distilled spirits; and that, in respect to
the latter the experience Of the Government has shown
that few, fany, frauds have occurred Upon this sub
ject, however, the Department, though inclined to Ia
the dea not prepared to submit any specific plan
but leaves i, to be disposed Of as the wisdom Of Con-
/ gress may direct.
All which is respectfully submitted.
| WALTER FORWARD,
Secretary Of the Treasury
Hon. john WHITE,
Speaker Of The House Of Representatives.
THE TREASURY TARIFF REPORT