Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-02-19
REFUNDING OF COTTON TAX.

hEG UNDlNU We OUIlVN IhAs
speech of Hon. j. VI. Bright, of TEN
nessee, In the House of Representa-
iyes, Feb. Ii, 1873,
| On the bin (H. r. No. 3901) to refund certain
| taxes collected by the United States on raw
| cotton during the years 1863 1864, 1865 1866
| 1861, and 1868, and 20 create perpetual com
mon-school fund, and for other purposes.
Mr.. Bright: Mr.. Speaker, propose t.
submit some reasons why Congress should
refund the cotton tax collected in the year,
1865, 1866, and 1867, by authority Of acts o
March Z, 1864, and July Is, 1866. The bill
does not contemplate the payment of any Ia,
collected before 1866. / speak in obedience
TO resolutions of the Legislature of the State
of Tennessee, as well as from my own firm
convictions that Congress ought TO make the
restitution. speak for no ring, but for the
great principle of right. / shall strive to
speak dispassionately to the great heart and
sound sense of the nation. 1 do not stand
here to question the integrity of those who
passed the Law. If error has been com.
mitted it can bat heighten our faith in the
Stability OF human government to know that
there it intelligence to perceive it, magma
nimity to confess it, and justice to correct
1t. Human frailty is always on the work
| Of revision and correction. The author
correc.s the errors of his old editions, the
| judge reverses his former decisions, Legis-
latures repeal their own laws, Cabinet min
| listers correct their own blundsrs, and the
people reform their own constitutions.
It is not marvellous that Congress, while
glowing with the heat OF sectional strife and
flushed with triumph, should have lost
| something of its equanimity, and have
been swsyed more or less by the gales OF
passion which still swept the country.
Cotton, through sectional vanity, had
been styled "king," and being associated
with the leading causes of our unhappy
conflict, it naturally attracted the attention
of Congress, and its royal neck was made
TO bend under the yoke of taxation.
hope that shall be pardoned for at
tempting with sincerity to show that Con-
gress incautiously stretched the taxing pow
ers Of the Government beyond the limita-
| tons of the Constitution in the imposition
of this cotton tax; and, if possible, to pre-
vail upon the clemeEcy Of the House to re-
store it to very needy people. The con-
stitutionsl provisions on the subject of tax
alton are as follows. Section eight, article
one, provides:
mThe Congress shall have power to lay and
collect taxes, duties, imposts and excuses"
but all duties, imposts and excuses shall
be uniform throughout the United States"
Section nine, article one:
''No capitation OF other direct tax shall be laid
unless in proportion TO the census or enumera-
ton herenbefOre directed to be taken,r
NO tax or duty shall be laid on articles ex-
ported from any State"
"NOpreferenoe shall be given by any regula-
ton OF commerce or revenue to the ports of one
State over those Of another; nor shall vessels
bound to or from one State, be obliged to enter,
clear, or pay duties in another"
Section ten, article one:
"NO State shall, without the consent of the
Congress, lay any impOstS duties on imports
OF exports, except what may be absolutely nee
essary for executing its inspection laws"
shall Insist that the cotton tax cannot
be justified under the apportionment rule
as direct tax; hor under the uniformity
rule as duty, impost or excise; nor under
the export provisions Of the Constitution.
APPoRTIoNMENF RULE.
There is no pretense that the law was
framed to operate under the apportionment
rule, there being no assessment nor appor-
tiOnment among the States according to
numbers, and of course cannot be justified
by that rule. But suppose that raw cotton,
in fact, was the proper subject of a direct
tax, but Congress attempted to tax it under
the uniformity rule, it would be equally OBJ
noxiOus to the Constitution. Congress has
no more right to tax an article outside of
its constitutional classification, than it has
The right to make a new constitution. I'm
fortunately, perhaps, the Constitution con-
tains AZ enumeration bat not a definition
of its powers. The facts and circumstan-
ces attending the making of the Oonstitu-
ton will furnish the safest rule for its inter
probation. They will furnish evidence Just
as the laborer's plow raises shells, and he
concludes the sea has been here"
The trainers of the constitution were en-
lightened states, had been subjects of the
British Government, and were we'll &C
qusin;ed with the systeEa of English tax
alton, and it is fair to presume that the
terms which they employed in the constitu-
ton were intended to have en- English sig
nifcstion.
Within the compass of an hour could
not begin to quote the reasons urged by
them as inducements to the. revenue pro-
visions of the constitution. / shall content
myself with mere references Madison's
Papers, PIP. 21S, 299, 3O5, 500, 4S2, 45T,
532; Z Works of Hamilton, SIS; / Eiliott's
Debates, All; 2 Eiliott's Debates, GO, l93,
194, 260, 3l5, 324, 922, as, 332, 1876, 81,
342, 343, 346, $50, a58, 464; 8 Eiliott's De-
bates, I19, 1873, 22S, 229, 233, PA, 240, 24S,
249, $50, 259, 270, 27l, AZ; 4 Eliott's De-
bates, $3.50, 101, 17S, POI, 2l9, 255, 446.
But what is direct tax? From the SUM
of the authorities existing at the time of
the formation of the Constitution, it is tax
which falls On the fixed capital or
productive property of country.
(Smith's Wealth of Nations, vol. 2,
p 5.) This property, by legal significance,
was divided into real and personal. |
Under the head of personal property,
fixed and capitalized, Adam Smith, who |
wrote bis great work ten years before the |
existence of our Constitution, enumerated |
agricultural implements, work beasts, |
breeding stocks, fleece bearing herds, dairy |
cattle, and seeds for planting, (vol. 2, pp.
I and 49, The framsrs of the Constitu-
lion as well as contemporary statesmen |
recognized this same classification.
Mr.. Madison said, on the subject OF d.
rect taxes:
"Thsre IL proportion to be laid on each |
State according to its population. Ii one article
n any State should be deficient it will be laid on
another article. "-El. Deb, 24s, 2I9, 254, 2s4.
Mark, he uses the comprehensive terIn
article, and which am persusded by no
air construction eSn be made to embracs
either polls or lands; but they are applicable
20 property outside of them.
Mr.. Hamilton classed with direct taxos
ands, buildings, and general assessments
IN real and personal estate, (Ham., W.,
ToI. Z, 845.l MsTS, be uses the broadcast
erns, and in an unrestricted sense.
Mr.. Marshall said:
"The objects of direct taxation are wei under
food; they are but few. What are they? Lands |
laves, stock of all kinds, and a few other arti !
les of domestic property.-3 EN- Deb. 22S-254.
The opinions Of these great and wise
men should baye apostolic force on all con-
Ititutionsl questions, and they cl arly show
hat personal property was the subject of
iirect taxation. The political economists,
AcCulloch, Perry, Mills and Say, sustain
he same view.
Under the head of a tax on real astata.