University of Virginia Library

WEDNESDAY, JANY. 29TH. 1783

Mr. Fitzsimmons reminded Congress of the numerous inaccuracies
& errors in the American column of the Treaty with
Holland and proposed that a revision of it as ratified should take
place in order that some steps might be taken for redressing this
evil, he added that an accurate comparison of it with the treaty
with France ought also to be made for the purpose of seeing
whether it consisted in all its parts with the latter.[40] He desired
the Committee who had prepared the ratification to give some
explanation on the subject to Congress.

Mr. Madison, as first on that Committee informed Congress,
that the inaccuracies & errors consisting of mis-spelling, foreign
idioms, & foreign words, obscurity of the sense &c were attended
to by the Committee & verbally noted to Congress when their
report was under consideration; that the Committee did not
report in writing, as the task was disagreeable, and the faults were
not conceived to be of sufficient weight to affect the ratification.
He thought it wd. be improper to reconsider the act as had been
suggested, for the purpose of suspending it on that or any other
acct., but had no objection if Congress were disposed, to instruct
Mr. Adams to substitute with the consent of the other party a
more correct counterpart in the American language. The subject
was dropped, nobody seeming inclined to urge it.

On the motion of Mr. Rutledge & for the purpose of extending
the discussion to particular objects of General Revenue Congress
resolved itself into a Committee of the whole to consider of the
most effectual means of restoring public credit; and the proposition
relative to general revenue was referred to the Committee.
Mr. Carroll was elected into the chair, & the proposition taken up.[41]

Mr. Bland proposed to alter the words of the proposition so as
to make it read establisht. of funds "on taxes or duties, to operate
generally &c." This was agreed to as a more correct phraseology.
Mr. Hamilton objected to it at first, supposing thro' mistake that
it might exclude the back lands which was a fund in contemplation
of some gentlemen.

Mr. Madison, having adverted to the jealousy of Mr. Rutledge
of a latent scheme to fix a tax on land according to its quantity,
moved that between the words "generally" & "to operate"
might be inserted the words "and in just proportion."

Mr. Wilson said he had no objection to this amendmt., but that
it might be referred to the taxes individually, & unnecessarily
fetter Congress; since if the taxes collectively should operate in
just proportion, it wd. be sufficient. He instanced a land-tax &
an impost on trade, the former of which might press hardest on
the Southn., & the latter on the Eastn., but both together might

distribute the burden pretty uniformly. From this consideration
he moved that the words "on the whole" might be prefixed to
the words "in just proportion." This amendt. to the amendment
of Mr. Madison was 2ded. by Mr. Boudinot & agreed to without
opposition as was afterwards the whole amendmt..

Mr. Wilson in order to leave the scheme open for the back
lands as a fund for paying the public debts, moved that the proposition
might be further altered so as to read "indispensably
necessary towards doing complete justice &c."—The motion was
2ded. by Mr. Boudinot, & passed without opposition.

The main proposition by Mr. Wilson as thus amended then
passed without opposition; in the words following: "That it is
the opinion of Congress that the establishment of permanent &
adequate funds on taxes or duties which shall operate generally &
on the whole in just proportion throughout the U. S., are indispensably
necessary towards doing complete justice to the public
Creditors, for restoring public Credit, & for providing for the
future exigencies of the War."

Mr. Bland proposed as the only expedient that cd. produce immediate
relief to the public Creditors, that, Congress sd. by a fixed
resolution appropriate to the payment of interest all the monies
which should arise from the requisitions on the States. He
thought this would not only give immediate relief to the public
Creditors, but by throwing into circulation the stagnant securities,
enliven the whole business of taxation. This proposition was not
2ded.

Mr. Wilson proceeded to detail to Congress his ideas on the
subject of a continental revenue. He stated the internal debt
liquidated & unliquidated at 21 Million of Dollrs. the foreign debt
at 8 Million, the actual deficiency of 1782 at 4 Million, the
probable deficiency of '83 at 4 Million. Making, in the whole 37
Million; which in round numbers & probably without exceeding
the reality may be called 40 Million. The interest of this
debt at 6 Per Ct., is 2,400,000 Drs., to which it will be prudent to
add 600,000, which if the war continues will be needed, and in
case of peace may be applied to a navy. An annual revenue of 3
Million of Drs. then is the sum to be aimed at, and which ought to
be under the management of Congs. One of the objects already

mentioned from wch. this revenue was to be sought, was a poll tax.
This he thought was a very proper one, but unfortunately the
Constitution of Maryland which forbids this tax is an insuperable
obstacle. Salt he thought a fit article to be taxed, as it is consumed
in a small degree by all and in great quantities by none.
It had been found so convenient a subject of taxation, that among
all nations which have a system of revenue, it is made a material
branch. In England a considerable sum is raised from it. In
France it is swelled to the sum of 54,000,000 of Livres. He
thought it would be improper to levy this tax during the war
whilst the price wd. continue so high, but the necessary fall of
price at the conclusion of it wd. render the tax less sensible to the
people. The suspension of this particular tax during the war
would not be inconvenient as it might be set apart for the debt
due to France on which the interest would not be called for during
the war. He computed the quantity of salt imported into the
U. S. annually at 3 Million of Bushels, & proposed a duty of 1/3 of
a Dollar per bushel which wd. yield 100,000 Drs. This duty he observed
wd. press hardest on the Eastern States, on acct. of the extraordinary
consumption in the fisheries.

The next tax which he suggested was on land. 1 Dollar on
every 100 Acres according to the computation of the Superintendt.
of finance would produce 500,000 Dollrs. This computation he
was persuaded might be doubled. Since there could not be less
than 100 Millions of Acres comprehended within the titles of individuals
which at 1 Dr. per 100 Acres yields 1,000,000 of Dollars.
This tax could not be deemed too high, & would bear heaviest
not on the industrious farmer, but on the great land-holder. As
the tax on Salt would fall with most weight on the Eastern States,
the equilibrium would be restored by this which would be most
felt by the Middle and Southern States.

The impost on trade was another source of revenue which altho'
it might be proper to vary it somewhat in order to remove particular
objections, ought to be again & again urged upon the States
by Congress. The office of Finance has rated this at 500,000
Dollars. He thought a peace would double it in which case the
sum of 3,000,000 Drs. would be made up. If these computations
however should be found to be too high there will still be other

objects which would bear taxation. An Excise he said had been
mentioned. In general this species of taxation was tyrannical &
justly obnoxious, but in certain forms had been found consistent
with the policy of ye. freest States. In Massachusetts a State remarkably
jealous of its liberty, an Excise was not only admitted
before but continued since the revolution. The same was the
case with Penna., also remarkable for its freedom. An Excise if so
modified as not to offend the spirit of liberty may be considered
as an object of easy & equal revenue. Wine & imported spirits
had borne a heavy Excise in other Countries, and might be
adopted in ours. Coffee is another object which might be included.
The amount of these three objects is uncertain but
materials for a satisfactory computation might be procured.
These hints & remarks he acknowledged to be extremely imperfect
& that he had been led to make them solely by a desire to
contribute his mite towards such a system as would place the
finances of the U. S. on an honorable and prosperous footing.

Mr. Ghoram observed that the proposition of Mr. Bland, however
salutary its tendency might be in the respects suggested,
could never be admitted because it would leave our army to
starve, and all our affairs to stagnate during its immediate operation.
He objected to a duty on salt as not only bearing too
heavily on the Eastn. States, but as giving a dangerous advantage
to Rivals in the fisheries. Salt he sd. exported from England for
the fisheries is exempted particularly from duties. He thought
it would be best to confine our attention for the present to the
impost on trade which had been carried so far towards an accomplishment,
and to remove the objections which had retarded
it, by limiting the term of its continuance, leaving to the States
the nomination of the collectors, and by making the appropriation
of it more specific.

Mr. Rutledge was also for confining our attention to the Impost,
& to get that before any further attempts were made. In
order to succeed in getting it however he thought it ought to be
asked in a new form. Few of the States had complied [with]
the recommendation of Congs., literally. Georgia had [not] yet
complied. Rhode Island had absolutely refused to comply at
all. Virga., which at first complied but partially has since

rescinded even that partial compliance. After enumerating the
several objections urged by the States agst. the scheme, he proposed
in order to remove them the following resolution; viz:

"that it be earnestly recommended to the several States to
impose & levy a duty of 5 Per Ct. ad valorem, at the time & place
of importation, on all goods, wares & merchandizes of foreign
growth & manufacture wch. may be imported into the said States
respectively, except goods of the U. S. or any of them, and a like
duty on all prizes & prize goods condemned in the Court of
admiralty of said States; that the money arising from such
duties be paid into the continental Treasury, to be appropriated
& applied to the payment of the interest and to sink the principal
of the money which the U. S. have borrowed in Europe & of
what they may borrow, for discharging the arrears due to the
army & for the future support of the war & to no other use or
purpose whatsoever; that the said duties be continued for 25
years unless the debts above md. be dicharged in the mean time,
in which case they shall cease & determine; that the money
arising from the said duties & paid by any State, be passed to
the credit of such State on account of its quota of the debt of
the U. States." The motion was seconded by Mr. Lee.

Mr. Woolcot opposed the motion as unjust towards those
States which having few or no ports receive their merchandize
through the ports of others; repeating the observation that it is
the consumer & not the importer who pays the duty. He again
animadverted on the conduct of Virga. in first giving & afterwards
withdrawing her assent to the Impost recommended by
Congress.

Mr. Elseworth thought it wrong to couple any other objects
with the Impost; that the States would give this if any thing;
and that if a land tax or an excise were combined with it, the
whole scheme would fail. He thought however that some modification
of the plan recommended by Congs. would be necessary.
He supposed when the benefits of this contin1. revenue should be
experienced it would incline the States to concur in making additions
to it. He abetted the opposition of Mr. Woolcot to the
motion of Mr. Rutledge which proposed that each State should
be credited for the duties collected within its ports; dwelt on

the injustice of it, said that Connecticut, before the revolution
did not import 1/50, perhaps not 1/100, part of the merchandize
consumed within it, and pronounced that such a plan wd. never be
agreed to. He concurred in the expediency of new-modelling
the scheme of the impost by defining the period of its continuance;
by leaving to the State the nomination, & to Congress the
appointment of Collectors or vice versa; and by a more determinate
appropriation of the revenue. The first object to
which it ought to be applied was he thought, the foreign debt.
This object claimed a preference as well from the hope of facilitating
further aids from that quarter, as from the disputes into
wch. a failure may embroil the U. S. The prejudices agst. making
a provision for foreign debts which sd. not include the domestic
ones was he thought unjust & might be satisfied by immediately
requiring a tax in discharge of which loan-office certificates should
be receivable. State funds for the domestic debts would be
proper for subsequent consideration. He added, as a further
objection against crediting the States for the duties on trade
respectively collected by them, that a mutual jealousy of injuring
their trade by being foremost in imposing such a duty would
prevent any from making a beginning.

Mr. Williamson said, that Mr. Rutledge's motion at the same
time that it removed some objections, introduced such as would
be much more fatal to the measure. He was sensible of the
necessity of some alerations, particularly in its duration & the
appointment of the Collectors. But the crediting the States
severally for the amount of their collections was so palpably unjust
& injurious that he thought candor required that it should
not be persisted in. He was of opinion that the interest of the
States, which trade for others, also required it, since such an
abuse of the advantage possessed by them would compel the
States for which they trade to overcome the obstacles of nature
& provide supplies for themselves. N. Carolina he said would
probably be supplied pretty much thro Virga., if the latter forbore
to levy a tax on the former, but in case she did not forbear,
the ports of N. C., which are nearly as deep as those of Holland,
might & probably wd. be substituted. The profits drawn
by the more commercial States from the business they carry on

for the others, were of themselves sufficient & ought to satisfy
them.

Mr. Ramsay differed entirely from his colleague (Mr. Rutledge).
He thought that as the consumer pays the tax, the crediting the
States collecting the impost, unjust. N. Carolina, Maryland, N.
Jersey & Connecticut would suffer by such a regulation and
would never agree to it.

Mr. Bland was equally agst. the regulation. He thought it replete
with injustice & repugnant to every idea of finance. He
observed that this point had been fully canvassed at the time
when the impost was originally recommended by Congress, &
finally exploded. He was indeed he said opposed to the whole
motion (of Mr. Rutledge). Nothing would be a secure pledge to
Creditors that was not placed out of the Countrol of the grantors.
As long as it was in the power of the States to repeal their
grants in this respect, suspicions would prevail, & wd. prevent
loans. Money ought to be apprõated by the States as it is by
the Parliament of G. B. He proposed that the revenue to be
Solicited from the States should be irrevocable by them without
the consent of Congress, or of nine of the States. He disapproved
of any determinate limitation to the continuance of the
revenue, because the continuance of the debt could not be fixed
and that was the only rule that could be proper or satisfactory.
He said he should adhere to these ideas in the face of the Act of
Virga. repealing her assent to the impost; that it was trifling with
Congs. to enable them to contract debts, & to withhold from them
the means of fulfilling their contracts.

Mr. Lee said he seconded the motion of Mr. Rutledge, because
he thought it most likely to succeed; that he was persuaded the
States would not concur in the impost on trade without a limitation
of time affixed to it. With such a limitation and the right of
collection, he thought Virga., R. Island & the other States probably
wd. concur. The objection of his Colleague, (Mr. Bland) he
conceived to be unfounded: No Act of the States could be
irrevocable, because if so called it might notwithstanding be repealed.
But he thought there wd. be no danger of a repeal, observing
that the national faith was all the security that was given
in other countries, or that could be given. He was sensible that

something was of necessity to be done in the present alarming
crisis; and was willing to strike out the clause crediting the States
for their respective collections of the revenue on trade, as it was
supposed that it wd. impede the measure.

Mr. Hamilton disliked every plan that made but partial provision
for the public debts; as an inconsistent & dishonorable departure
from the declaration made by Congs. on that subject. He
said the domestic Creditors would take the alarm at any distinctions
unfavorable to their claims; that they would withhold their
influence from any such measures recommended by Congress;
and that it must be principally from their influence on their respective
legislatures that success could be expected to any application
from Congs. for a general revenue.