fftfi A NATIONAL PAPER, PUhLISHt D WEDNESDAYS AND SATURDAYS BY JOHN FENNO, No. 69, HIGH-STREET, PHILADELPHI A [No. 96, of Vol. lII.] XEAD IN THE HOUSE OF REPRESENTATIVES, THE 17th INST Treasury Department, March 16, 1792. THE Secretary of the Treasury, pursuant to a Resolution of the House 0/ Reprefevtativcs 0/ the Sth injlaut, directing the fiid Secretary to report to the Houft his opinion of the bejl mode oj raising the additi onal Supplier requijittfor the ensuing year, rejpetfjully submits the following REPORT THE sum which is estimated to be nectflarv for carrying into /•ffeft the purposes of the ast for making further and more ef fectual provision for the prote&ion of the frontiers of the United States, beyond the provision made by the ast making appropriati ons lor the support of government for the year 179 a, is Dols. 675.950 8 The returns which have been received at the treasury subsequent to the Secretary's report of the 23d of Januaty last, among which are those of some principal ports, afford faiisfa£lory ground of as surance, that the quarter ending the last. of December wa* consider ably more preduftive than it was supposed likely to prove ; au thorizing a reliance that the revenues to the end of the year 179:, will yield a furplusof 150,000 dollar*—which may be applied in part of the film of 675,95° dollars and 8 cents, above Hated to be weceffary. Provision remains to be made for the residue. of this sum, 5 2 5»95° dollars and 8 cents. Thiec expedients occur to the option of the government for providing this sum. One, to dispose of the interest, to which the United States are entitled in the bank of the United States. This, at the preient market price of bank stock, would yield a clear gain to the govern ment much more than adequate to the sum required. Another, to borrow the money, upon an eitabiiflimcnt of fund?, fither merely commensurate ith the intcrtft to be paid, or af fording a surplus which will discharge the principal by iDllalnqcQU vi hin a short term. The third is, to laife the amount by taxes. Thefirltof these three expedients appears to the Secretary alto gether unadvifeable. fiift—lt is his pi efent opinion, that it will be found, in various refpefls, permanently the intereil of the United States to retain tfhe interest to which ihey are entiiled in the bank. But, Secondly—lf this opinion should not be well founded, it will ~hc improvident to dispose of it at the present jimflure, since upon a comprchcnfive View ofthe fubjeft, it can hardly admit of a doubt, that its future value, at a period not very distant, will be consider ably greater than its present—While the government will enjoy the benefit of whatever dividends (hall bedeclaied in the interval. And, Thirdly—Whether it shall be deemed proper lo retain w difpole of this interest, the moO ufeful application of the pro teedswill he as a fund for extinguishing the public debt. A ne ceflity of applying it to any different objed, if it Ihuuki be lound to exist. would be matter of fertous regret. The second expedient would, in the judgment of the Secretary, "be preferable to thefirft. For this the following reason, if there were no other, is pre sumed to be concJufive—namely, That the probable incieafe of the value of the flock may itfelf be cftimated as a considerable, if not a fufficient fund, for the repayment of the sum which might be borrowed. If the measure of a loan should be thought eligible, it is fubmiu ted as mod advifeable to accompany it with a provision, fufficient i\ot only to pay the interest, but todifcharge the principal with in a short period. This will, at lcaif, mitigate the inconvenience of thaking an addition to the public debt. But the result of mature reflation is, in the mind of the Secre tary, a strong convi&ioo, that the last of the three expedients, which hn*e been mentioned, is to be preferred to either of the «ther two. Nothing can more interest the national credit and prosperity, than a constant and systematic attention lo husband ail the means previously poffefled for extinguilhing the present debt, and to a void. as much as pofUble, the incurring of any new debt. Ncccflity alone therefore can juftify the application of any of the public property, other than the annual revenues, to the cur *ent service, or the temporary and casual exigencies of the coun- the contraftmg of an additional debt, by loans, to provide for those exigencies. Great emergencies indeed might exist, in which loans would indifpenfible. But the occasions which will juftify them mud be truly of that description. The present is not of such a nature. The sum to be provided is not of magnitude enough to furnifh the plea of nectflhy, Taxes are never welcome to a community. The/ seldom fail to excite uneasy sensations more or left extensive. Hence a too strong propensity, in the governments of nations, to anticipate and mortgage the resources of posterity. rather than encounter the in conveniences of a present increase of taxes. But this policy, when not di&ated by very peculiar circum- Aances, is of the worst kind. Its obvious tendency is, by enhanc ing the permanent burthens of the people, to produce lading dif trels, and its aatural iflue is in national bankruptcy. It will he happy, if the councils of this country, fan£lioned by the voice of an enlightened community, (hall be able to putfue a different course. Yielding to this impreflion, th« Secretary proceeds to state for the consideration of the House, the obje&s which have occurred to biro as most proper to be retorted to, lor raising the requisite sum by taxes. From the most careful view which he is able to take of all the c'rcumftancc*, that at the present juncture naturally enter into con sideration, he is led to conclude, that the moil eligible mode, in "which the neceflary proVision can at this time be made, is by some add:tional duties on impoited articics. This conclusion is made with relu&ance, for reasons which noticed upon a former occasion, and from the refle&ton, that frequent and unexpc&cd alterations in the rates of duties, on the objects of trade, by inducing uncertainty in mercantile speculati ons and calculations, are really injurious lo commerce and hurtful to the interrftsof those who carry it on. The (lability of the duties to be paid by the merchants is in of more confequencc to them than their quantum ; if within rea sonable bounds. It were therefore much to have been wished, that so early a re sort to new demands on that class of citizens could have been a •voided, and cfpeciallv that they could have been dcicrred until a Wednesday, March 28, 1792. genera] tariff could have been maturely digtfted, upon principles, which might with propriety render it cflVntially stationary. But while there are these m©tivts to rcgiet, there aie others of a consoling tendency, some of which indicate, ihat ?n augmenta tion of duties, at the present juncture, may have theeffift of lef fcning some public evil*, and producing fone public benefits. Ii is a pleafinp; fitft, if the information of the Secretary be not veiy erroneous, that the improved state of the credit of this coun try enables our merchants to procure the supplies which they im port from abroad upon much more cheap and advantageous terms than heretofore, a circumstance which rauft alleviate to them the prefTure of somewhat higher rates of duty, and mud contribute, at the fametimc, to reconcile them to burthens, which being con n<ftcd with an efficacious discharge of the duty of government, are of a nature to give solidity and permanency to the advantage they enjoy under it. It is certain also, that a spirit of manufa&uring prevails at this time in a greater degree, than it has done at any antecedent period, and as far as an encreafe of duties (hall tend to Second and aid this Spirit, they will Serve to promote essentially the indullry, the wealth, theftrtngth, the independence and the Substantial prospe rity of the country. The returns for one year, ending the thirtieth of September last, an abftraft of which is in preparation to be communicated to the legislature, evince a much incrcafcd importation, during lhat year, greater far than can be referred to a naturally increaSing de mand from the progtels of population, and announce a probabi lity of a more than a proportional increase of consumption ; there being no appearance of an txtiaordinaiy abundance of goods in the maiktt. If happily an extenSion of the duties Shall operate a& a reilraint upon efcccflive consumption, it will be a falutarv mean of preServmg the community from fntore cmbariafTment, public and private. But if this fbould not be the caSe, it is at leafi pru dtnt in the government, to extract Siom it the reSources neceflary Sor current exigencies, rttherthan postpone the burthen to a peri od, when that very circumilance may cause it to be more grievouS ly felt. Tbefe different considerations unite with others which will Sug gest themfj'lves to induce, in the preSent state of things, a prefer ence of taxes oq imported articles, to any other mode ol railing the Sum required. It istherefone reSpe&Sully Submitted— That the existing duties on the aiticles hereafter enumerated, be repealed, and that in place oS them the following be laid, viz. W I N E S. Madeira of the quality of London particular, per gallon, Ditto London market per do. Other Madeira wtuc per do. Sherry per do. St. Lucar per do. Oporto per do. Teneriffe and Fayall ptr do. All other wines 4Q per centum ad valorem. SPIRITS. Those distilled wholly or chifily.Xioii) grain. Of the fiift class of proof per gallon, Ot the fee on d do. per do. Of the third do* per do. Ot the fourth do. per do. Ot the fifth do. per do. Of the sixth do. per do. Other diAilled Spirits, Of the feeond class of proof and under Of the rbifd do. Of the fourth do. Of the fifth do. Of the sixth do. Beer, ale and porter Steel Nails Cocoa Chocolate Playing-Cards Shoes and flippers of silk Shoes and (Uppers of stained or coloured leather, other than black, tor men and women Ditto ditto for children All other flioes and flippers, for men and women, clogs, golofhoes All other Ihoes and flippers for children ARTICLES ad valorem. China wares Looking glass, window and other glass, and all manufactures of glass, black quait bottles excepted Mufketsand Pistols Swords, cutiaffes, hangers, and other fire and fide arms Starch Hair powder Was ers and Glue, 15 per centum ad valorem. Call, flu and rolled iron, and generally all manufactures of iron, ftcel, tin, pewter, coppcr, brass, or of which either of these me tals is the ariicle of chief value, not being otherwise paiticulai ly enumerated Medicinal drugs, except those commonly used in dying Hats, caps, and bonnets of tvery fort Gloves and mittens Stockings Millenary ready made Artificial flowers, feathers and other ornaments for women's head dresses Fans Dolls, drefled and undreflfed Toys Buttons of every kind Carpets and carpeting, mats and floof cloths Sail cloth Sheathing and cartridge paper All powders, pastes, balls, balsams, ointments, oils, waters, wafli cs, tinfturcs, cHeiices, liquors, or other pieparation or compo sition, commonly called fujeet Junts, odours, perfumes, or coj metics All dentrifice, powders, tin£lures, preparations or compositions for the teeth or gums Printed books, except those specially import- d for a college, aca demy or other public or incorporated ferni nary of learning or inflitution, which shall be wholly cxempicd from duty—loper cent. ad valorem. 381 per do. per do. per do. per do. per do. per do. per cvC per Jb. per do. Der do per pack The foregoing duties to be permanently established, and to be appropnaied in the fiiil place to the paym<nt of the nuerell ot 'he public debt ; inthefecond, to such other grants and appro p iations as have been heretofore made; and in the tlii>d,to the put poses of t he a£t for making lurthcr and more ettefhial provi sion tor the proti&ion of the frontiers of the United i>:ates. An addition of two and half per cent, ad valorem, to be made to the duty on all goods heretofore rated at 5 ptr centum ad va lorem. This addition 10 be temporary, and accordingly to be so efta bliflied as that i: (hall not continue longei, than till the present Indian war shall terminally and the expences of carrying it on shall have been defiayed, which will of course include the reim bursement of any (unu, that may have been borrowed by way of anticipation of the product of the duties. It is represented that the present duty on fait operates unequally from the considerable difference in weight in proportion co quan tity of difte ent kinds of fait ; a bushel veig.ing from about $$ to upwards of 80 weight. It would have an equalizing effect if the bulhel \*ere dt fined by weight; and ii 56 pounds were taken the flaudard, a valuable acccflion to the icvenue would tefult. 1 his regulation is therefoic Submitted as a resource upon the present occasion. The rate of duty to remain as it is. It will be a reafojnabie accommodation to trade, if it is made a part of this arrangement, to extend the credit lor the duty on fait, to a longer term. It is an article, which from the circumflances of its importation, frequently lies on hand for a confid. raoie lime ; and in relation to the fineries is usually fold upon a cre dit of several months. Some remarks may be proper in regard to the proposed duties; Those on spirits and wines may appear high. They artdpubt lefs confidcrablt—-But there are precedents cltcwhere of much higiicr duties on the fame articles. And it isceitainly in every view juftifiable to make a free use of them for the purposes of re- venue. \Vtnes, generally Speaking, are the luxury of claffcs of the com munity who can afford to pay a ccnfidciable duty upon them. It has appeared adviSeable to adhere to the idea of a Specific du~ ty. per quantity on 411 the fpeciea of wines in mott common coi - lumption in the country, and those molt susceptible of prccife de signation ; as affording the greatcft certaintx to the revenue. And to adopt a general ad valorem rate for other kinds, proportioned to the Specific duties. This rate is 40 per cent. This diftin&ion has proceeded from the difficulty of a piecifc enumeration of ail the other k.nds of wine, which are and may be imported, and of fuchan adjustment of fpecific rates, as wiil bear some reasonable proportion to the value of the article. The present lowest iaie of duty on wines amounts to 200 and 300 per cent, on the value of certain kinds ; which may be confidercd as equivalent to a prohibition. While therefore ideas of proportion will be better consulted than heretofore, by the proposed arrangement, it is probable, that theievcnue will be benefited, rather than injured, by a redutlioa of the duties on low priced wines. Theconfideranons which render ardent spirits a proper obj 51 of hifch duties, have been repeatedly dwelt upon. It may be ad ded, that it is a familiar and a just remark, that the peculiarly low price of ardent spirits in this country is a great source of in temperance. To bring the price of tbe article more nearly to a level with the price of it in other markets by an increase of duty, while it will contribute to the advancement of the revenue, cannot but prove in other refpe&s a public benefit. ( ents. 5 6 49 40 33 3° 2 .5 EC £8 2 9 3 1 34 40 50 24 27 3 1 37 45 8 10c 2 2 3 2 5 20 1.0 7 ic 7 The tates proposed will be still moderate compared with ex. ampUs ill other countries; and the article is of a nature to enable the importer,without difficulty,to transfertheduty to the conlumer. A difcriminatton is suggested in refpeCi to duties on fpi: us dil tilled from grain. To this there have been two inducements — one, that the difference in the duty is conformable to the differ ence between the cost of the grain spirits usually imported, and that of Wtit-India rum—another, that it is in a particular manner the intcreft ot the United Stales to favor the distillation of its own grain, in competition wiih foreign spirits from the fame material. In the second division of spirits, the firfl class of proof is drop ped, because none of it comes from the Weft-Indies ; and beca-ufe any other spirits usually imported which may be of so low a proof are higher priced, even than some of the higher proofs of Weft- India spirits. The dropping of that class of pioof therefore this cafe is favorable to the revenu: and favorable to equality. Several of the other fpecific duties which arc proposed, beftdef the inducements to them as items of revenue are strongly rccam* mended by confederations which have been stated in the report oi the Secretary on ihe fubjiCt of manufactures. The fame repoiC stares inducements to als per cent, duty on some of the articles* which are mentioned, as propei to be comprized under that rate. With regard to china and glass, there are two weighty rcafonf for a comparat.vely high duty upon them. The use of them is very iimitcd except by the wealthier claflfes. And both theif bulk and liability to damage in tranfportatiun are great securities •gainst evasions of the revenue. It will however merit coufidcr* ation, whether for the accommodation of im orters, a longer term of credit ought not to be allowed on thele articles. A duty of two cents per pound on cocoa is less in proportion o Vdlue than the present duty on coffee. As an extensive article of consumption, it is a productive one of revenue. The duty on playing cards can give rife to no question except as to practicability of a fafe collc&ion. In order to this it will be proper to super-add certain precautions, which will readily occur n regulating the details of a bill for the purpose. A fitnilar at tention will be requisite in regard to the duties on wines. The employment of marks and certificates may advantagtoufly b« ex tended to this article. The rate of 10 per centum ad valorem it is hoped will not be deemed immoderate in relation to the articles to which it is pro» posed to apply it. It is difficult to rules for what ought 10 be considered as a just standard. But alter the belt confederation which the Secretary has been able to bestow upon it, he caru.oC discover, that any real inconvenience is likely peimanently to result from the cxtenfion of that rate to the cases proposed. The addition of per ccnt. to the duiy on the mals ot articles now rated at 5, will conflitu e an important, though not au ex seifive augmentation. Nevertheless, it is propofeo, that it (hall be only temporaly—and there is reasonable ground of expedi tion, tiiat the cause lor having recourse to it will not be of very long continuance. It will not have efcapcd the observation of the House, that the dunes which were fuggelted in the Secretary'sreport, on that fub jeft, as encouragements to manufactures, are for the moll part in cluded amoug the objecis of this report. [Whole No. 504.}
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