Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1845-11-27
The Warehousing System.

The WarehOusing System.
We have hastily SKINNED over an article in the
October number of the Southern Literary Messenger,
from the pen of 'Harry Buff who is said to be Lit.
MAURY, of the U. S. Navy. The article is address
ed to the Memphis Convention, and ably discusses
various questions of public interest Of these the
most prominent and probably the most important, is
that of the establishment Of the WdrehouSing SyS-
TEN, it is called, for the benefit of the commercial
interest of the country, but especially Of the South
By this system is meant the provisions made for
lodging imported articles in public warehouses, at
fair rent, without payment of the duties mporta-
tion till the articles be Withdrawn for home consumP-
ton. If re-erported, no duty is paid.
1t is laid down by Dr. Smith, in one of his justly
celebrated maxims on the subject of taxation, that
EVERY tax ought be levied the time and in the
that is likely to be convenient for the
contributor to pay it, Wealth Of Nations, vol. ILL
page 1851 No one can doubt the soundness of this
maxim and yet it was very strangely neglected.
down to 1903, in the management of the English
toms Previously to this period, the duties on most
goods imported had either to be paid at the moment of
their Importation, a bond with sufficient security
for their future payment had to be given to the
a system is obvious. 1t was often very difficult to
find sureties and the merchant, in order to raise
funds pay the duties, frequently reduced to the
ruinous necessity of selling his goods Immediately
their arrival, when perhaps, the market already
glutted. Neither was this the only inconvenience
that grew out of this system for the duties having
to be paid all at once and not by degrees the goods
sold for consumption, their price raised by
the amount of the profit on the capital advanced in
the payment of the duties competition, too, di
minished in consequence of the greater command of
funds required to carry trade under such disadvan
tages and a few rich individuals were enabled TO
monopollse the importation of those commodities on
which heavy duties were payable The system had,
besides an obvious tendency to discourage the car
rying trade. 1t prevented that country from becom
ing an sntrepo for foreign products by hinderng the
Importation of such not Immediately wanted
for home consumption and thus tended to lessen the
resort of foreigners English markets, inasmuch
1t rendered it difficult, rather impossible for them
to complete an assorted cargo And in addition to all
these circumstances the difficulty of granting real
ly equivalent drawback to the exporters of such
modities had paid duty, opened door for the COM
mission of every species of fraud.
"Harry Bluff" contends that tle same, and even
greater evils, have been inflicted upon American COM
merce, by our defective Custom House system; and
argues strongly that these evils alone be RENE
died by the adoption of the warehonsng system. He
argues, and plausbly too that it is by this system
alone that the Southern cities especially, regain
that prosperity which they naturally entitled,
and which they enjoyed; but Of which they
have been deprived by the unfavorabe influence Of
our present revenue laws.
.sHarry Bluff takes correct ground in opinion
in relation to the payment of duties in cash. He
says:
al do not mean to inveigh against cash duties
the contrary, would have the duties IN cash, by all
means ; but would have monopoly IN trade, and
as few restrictions possible upon commerce. The
present system makes the importing business OF the
country monopoly of the most odlous kind. Instead
of exacting the duties when the goods were landed,
would let them 90 into bonded Warehouses, properly
protected and secured and the duties only when
the goods leave these Warehouses for consumption al
home. With such an arrangement, men OF small
capital could go into the importing business, compe
ttion would become more active and goods cheaper
consequently an increased demand an increased sup
ply increased abilities to buy larger consumption,
greatly increased revenue ;-all,-would follow.
"The merchant having a capital of SiOO,OOO
would not then, now have to keep one quarter d
it by him, in cash, ready for the Custom-House anc
make 50 do the work of Si for the country mer
chant coming lay in his assortment, would find il
cheaper buy the goods in bond from the importer
get the transfer at the Warehouse Office and pay du
ty himself if he reside or, if not, remove the
whole under bond say to ST. Louis, Cincinnati, re-
warehouse them there, and pay duties as he with
draws them for consumption. By this course, h'
would save the commission and interest, which thu
importer now charges for paying the duties for him
he could carry on the same business with smalle
capital. And thus the consumer would buy cheaper.
This subject will doubt come before Congress
this winter, and we hope that some judicious plan
embracing all the economical features suggested b.
the experience of Great Britain, and by the wisdom
of our own statesmen, will be adopted.