The National tribune. [volume] (Washington, D.C.) 1877-1917, 1903-04-16

CAPT. HENRY A. CASTLE
which enacted the original American
tariff, and which included the encourage
ment of manufactures as a legitimate
policy.
HAMILToN's PROMPT DEMAND FOR
REVENUE.
Little time was lost after the United
States Government was put in operation
under the Constitution, in preparing fol
the exercise of one of the most important
| and pressing functions. The Treasury
was formally organized as a Department
Sept. 2, 1889, and Alexander Hamilton
was the first Secretary. His first report
dealt with the debt which was pressing
and the means to pay the annual inter
est as well as the current demands of the
Government. He wanted in all $3.50.
1853. He argued that this sum might be
derived from the existing duties on i'm
ports and tonnage, increased, as could
well be done. He classed all the articles
| which were enumerated as in reality
Injuries. Under this inspiration the tariff
of 1880 was enacted, which made an aver
age increase in duties of two and half
per cent. The imports for the year end
ing Sept. 80, 1870. were, at duties of five
per cent, $13, 11S,510: at seven and a
half per cent, 5000, 1873; at ten per cent,
S644 ,32G; and at u per cent, $5,429 But
it must be remembered that especially in
the United States money was worth q
great deal in those days of poverty:
hence, the imports and the rates of duties
are to be measured with that fact in view.
The duties on distilled spirits were modi-
fed according TO proof, by act of March
3, 1871. and carried up to 80 cents a gal
Ion, amid loud protests.
INTERNAL TAXES.
But customs duties alone were not
deemed sufficient to produce the revenues
imperatively demanded, and in 1890 a
measure for taxing distilled spirits of do
mestic Manufacture was introduced into
Congress. But the opposition it at once
aroused was sufficient to defeat its pas
sage. The Legislature of Pennsylvania in.
structed its representatives in Congress to
oppose the passing of an excise "the hor-
ror of all free States" and in n petition
to Congress the inhabitants of Westmore-
land, Pa, claimed that to convert grain
into spirits was as clear natural right
as to convert grain into flour. The pro-
posed taxes would weigh heavily upon the
farmers of the western Counties of Penn
sylvania. Owing to the distance of the
markets and the great difficulty and ex-
pense of transporting such bulky COM
modify as grain, the farmers were in the
habit of converting their grain into
whisky, and transporting It in that shape
Mr. breckenridge, in his History of
tie Western Instruction" states that the
still was tie necessary appendage of ev-
cry farm, where the farmer was able to
procure it. And this petition from West
moreland recites that ''for these rea-
sons we have found it necessary to intro
duce number of small distilleries into
our settlements, and in every circle of 90
or ~ neighbOrs one Of these is generally
erected for the accommodation of the
neighborhOOd."
In the following year, nnder the advice
OF Hamilton, like measure was intro
duced. and, after bitter contest, was
passed, March 3. 1871. Under this act
spirits distilled from foreign materials
(inolasses) were taxed at a somewhat
higher rate than those from domestic
materials GRAIN and fruit, the discrmina-
ton amounting to from two to five cents
per gallon, according TO proof.
ESTABLISHED, LOCALIZED AND ADAM
DoNED.
1t thus appears from our financial an
- y,
Gress resorted to internal taxes, and that
they at once aroused opposition. In the
succeeding year, Secretary Hamilton was
ordered TO present n report on the sub
Ject. He tried TO meet the objections that
the system was offensive to liberty, in.
furious to morals, and involved heavy
penalties and frequent litigation. The
taxes fell especially upon spirits. but the
term excise was popularity taken to cover
the entire principle of internal taxation.
The resistance TO the law became fragrant.
and drew in persons of prominence.
In Pennsylvania, Albert Gallatin was
an officer at meeting to denounce the
system. He published sketch of the
finances in 1876 to expose the weakness
of the methods of excise adopted. Rut
the country and the courts, which We're
appealed to on the plea that the law was
unconstitutional, sustained Congress. The
policy was extended. Carriages, sales at
auction, vellum, and paper used for legal
documents, sugar refined within the
United States, and snuff, were included in
the scheme of taxation.
But the Treasury wanted still more
money. Two plans were suggested: First.
to extend these internal taxes; and, sec.
ond, to impose direct taxes, apportioped
among the States. Oliver Wolcott. Ham
ilt0n's successor at the head of the Treas
ury, insisted that "a direct taxation. as
odd as 1t may SEEM, is essentially neces-
sary to induce people to lore their Coy