The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-06-22

m The Senate June 10, lS46-0n the bill providing a
warehouse system for imported merchandise.
Mr. DIX addressed the Senate as follows
Mr.. PREsipssr, The bill under consideration was
reported TO the Senate from the Committee on Com
merce under resolution nstructng them TO inquire
into the expediency OF establishing warehouse sys-
tenn and giving them authority TO report by bill.
The committee having charged me with the intro
dueton Of the bill. Il deyoves me TO explain its
provisions 10 point out les objects, and TO show In
y la, respects i modifes existing laws.
The bill is designed by the committee to respond
ufrmatiyely to the inquiry they were instructed to
make IL Is true, II does not provide specifically
for the establishment Of warehouse system; but Il
aims to accomplish all the objects Of such system,
by extending the provisions Of exating laws in rels
ion 10 the storage and final disposal Of imported
merchandise. They have given Il the greatest pos
.ible simplicity in form. They have not deemed it
erpedient to recommend a complex system. They
have aimed to introduce no principles wholly new
or untried They have made the system they propose
conform as nearly as practicable TO the provisions Of
existing laws. They have foundedit on attachments
now in force, and in daily and familiar operation, en-
aetments Of which the meaning and application have
been settled by construction and practice. The bill
consists Of an amendment Of single secton-the
twelfth section--of the act OF the 30th Of August,
1912, commonly called the tariff act II is almost
transcript ofthat section and the thirteenth. The
amendments, though important, are all comprised
within the compass OF a few lines. Thus, senators
will perceive that the proposed measure will be
presented for their consideration in the most simple
shape and that the examination which the lmpOT-
lance Of the measure demands may be carried on,
without embarrassing their attention by completely
Of details.
The first observation which deem il proper to
make in connection with the general policy Of the
measure, is that the warehouse system is actually
IN existence, though on very narrow basis and in
very imperfect form. Indeed, believe there has
been no period from the foundation Of our revenue
system when Il was not IN operation IN some shape
or other and under certain limitations. II will, in
fact be necessary, in order TO show to what extent
in force to go back to the general revenue act Of
the ID March, 1893, "to regulate the collection OF
duties imports and tonnage"
The Seth section Of that act which is still in force
with some notifications, provides that, AFTER the ex-
piration Of fifteen working days from the time pre-
scrbed for reporting vessel, If any goods shall be
found on board other than such were reported for
entry in another collection district some foreign
port, they shall be taken possession OF, and stored
under the order Of the collector The same section
also provides that after FIVE days. notice to the col
lector, any goods may be 30 taken and stored
with the consent Of the owner consignee, or the
master of the vessel BY the act Of Sd March, 1921
the time allowed for unlading vessels exceeding
three hundred tons burden is extended from fifteen
TO- twenty working days; and by proviso in the
s6th section Of the act Of 1899, which am now ex
aiming, the 6Aeen working days originally allowed
may be extended by the collector fifteen days more
for vessels laden with salt or coal.
The act of 1893, ike all the early acts regulating
the collection of duties, gave credit to the import
er, where the duties ehargeable on imported mer
chandise exceeded certain amount. If the duties
did not exceed fifty dollars, they were required by
that act to be paid in cash; and by the act Of the
l4th July, 1882, cash payments were exacted for
duties exceeding two hundred dollars. On all
al.
the goods and gave his bond, payable at periods
rying from three to twelve months according to the
nature of the merchandise and the countries from
which il was imported. This was the genera sys-
tenn There was an exception to 1t in the case of
teas, which were allowed TO be deposited in stores
agreed on by The importer and inspector of the rev.
enue--bonds without sureties being taken, in dou
bic the amount Of the duties, payable in two years
And there also general provision authorizing
collectors to receive goods in deposte, by way Of Sc
curing the payment of duties, as substitute for
surees on bonds. For instance, If the importer
preferred not to give sureties lie was allowed to
give his own bond and take his merchandise, depos-
ting with the collector a sufficient quantity to in
sure the payment Of the duties on the whole.
Under the system of credits thus established,
there was strong mducement to place goods in
store pursuant to the provisions Of the 56th section
Of the act of 1899. Such as were found on board
vessels after the time specified for unlading, were
usually small in quantity and not of great value.
Under the proviso Of the 56th section, which have
referred TO- authorizing goods be received in store
after five days. notice, with the consent Of the owner,
believe was, and still is, the practice for vessels
in haste to enter the return voyage, and especial
y packets to be put on what is called the five days
ORDER for the purpose of unlading and sending their
cargoes TO the public stores without waiting for
them TO be appraised, weighed, measured and
guaged
Goods thus deposited were, by the provisions Of
the Seth section permitted to remain in store for
the term Of nine months, unless the duties charge.
able on them became payable in shorter pc
rod; and in this case a sufficient quantity was
allowed to be sold to realize the duties when
they were due The residue to be sold
at the end Of the nine months, with the addition
Of one month prescribed for advertising them. So
that, with the nine months allowed for retaining
goods in store, one month for advertising, twenty
days for unlading, and unavoidable delays, it rare
ly happened that goods charged with duties paya-
bic in nine months were sold in less than year.
Before goods were sold, they were required to be
appraised by two more reputable merchants;
and the proceeds Of the SALE after deducting the tu-
ties and charges, paid into the treasury OF the
United States for the use of the owner, upon proof
OF his right to receive them.
Such was the warehouse system as il existed UNI
der the earliest revenue laws The system of cred
It's established by the same laws, and the limited
time for the deposte of merchandise rendered it OF
Of commerce. I call il a warehouse system, though
may be deemed unworthy Of the name, as its OBJ
lect was, in degree, the convenience the COM
mereia community.
The 18th section Of the act Of the 30th August,
1912, requires the duties on all imported merchan.
disc to be paid in cash. The act Of 1899 required
duties to be paid, or secured TO be paid, before
permit for landing them was granted But in order
10 ascertain what the duties WERE ii was necessary,
as general rule, to the goods to be weighed,
guaged, measured, and sometimes sent to the pub
nc stores to be appraised The necessity Of the case,
therefore, established this construction Of the law,
which has existed from the earliest period--that its
requirements are sufficiently complied with II the
importer pays the duties regularly ascertaned, or
secures them when estimated, before he obtains
possession Of the goods on which they are charged
This practice exists, and must always exist under
any system of cash duties. 1t existed when the
cash system partial, when it was made univer.
sal, and il exists still Under the cnuh system,
then the duties be paid or deposited before the
goods 60 into the possession Of the owner Under
the credit system, the owner obtained possession
Of his goods on giving his bond for the payment Of
the dutao a. n fntnro dav