H. OF R.] Duties on Tonnage. [MAY, 1789. people of New England, they may derive com- taken place than was supposed by gentlemen, mercial and agricultural benefits. This is also who did not choose to magnify the causes of varimy own judgment on the point. I know they ance; every thing we have hitherto done, tends cannot now supply us with vessels to transport to make this evident. The importance of the our produce, but I hope the time will shortly Union is justly estimated by all its parts; this come when they will have the ability; in the being founded upon a perfect accordance of intermean time, when I consider how much the South-est, it may become perpetual. I know that the ern staples are fallen in price, and the great debts point before us has often been selected as a proof due in that country, I must say, that I fear a that there was an incompatibility of interest in heavy tonnage will be attended with very danger- the United States. On this opinion I beg leave ous consequences. There are very few foreigners to remark, that the difference in point of capacity but British come among us, and a high duty laid in the several States to build ships and furnish upon their ships will fall severely upon the plan- seamen, is much less than has generally been ters. The Southern people are willing to render supposed. From the extremity of the Norther any assistance to increase the maritime import- States until we reach South Carolina, materials ance of the Eastern States as soon as they are of all sorts for ship-building can be obtained in able; if, therefore, a distant period is fixed for the abundance from the bounty of nature; even Georcommencement of the high duties, I shall be in gia abounds with materials of superior quality; favor of them; but if they are to take place im- although their population disqualifies them for mediately, I fear they will do a great deal of in- ship-building at present, yet their advantages are jury in the present deranged and calamitous situa- such as to enable them in a short time to rival tion of our country. the most prosperous State. In the next place, I may remark, that so far as the encouragement of our own shipping will be given at the expense of the people of the United States, it will diffuse and equalize its operations in every part. The ships belonging to one place will, like the people, seek employment in another where better wages are obtained, and this, in its operations, will level any inequalities supposed to arise from legislative Mr. GOODHUE was glad to hear from the several parts of the House, that there was a disposition to give a preference to American shipping. This principle being fixed, it only remained for the House to ascertain the proper degree of encouragement to be given; the rate agreed to in the committee was not more than good policy required. The gentleman from Georgia fears that the people of his State will suffer for want of ves-interference. sels, or pay a higher freight than their neighbors; With respect to the particular article before the but a high duty is not contended for in the first House, I do not think it requires the discussion instance, it is only such a degree of encourage- that has been gone into. If we consider the small ment as will enable us to enter into a competition proportion of shipping belonging to nations in with foreigners in our own carrying trade. The commercial alliance with the United States, a same gentleman has said, Massachusetts has not duty of thirty cents per ton will be found to affect, vessels enough for her own commerce, and there- in a very small degree, the interest of any parfore cannot furnish any for others; although ticular State; if it increases a supply from that Massachusetts employs 7 or 8000 tons of foreign quarter, the burden will lighten in proportion. shipping; yet it is supposed she supplies the other With respect to the clause which follows, I have States with 30,000 tons. The circumstance of in view to make a proposition to obviate the com5,000 hogsheads of tobacco lying to rot for want plaints of the Southern States. I mean that the of vessels, when some thousand tons of ours are duty shall be light until the 1st of January, 1791, idle for want of employment, does not prove the when it shall be increased; this will give a conwant of shipping, so much as that the price of the siderable opportunity for those States that are article is too high for a foreign market. If the able, to make gradual preparations to fill up the produce is held so high as not to bear the expense vacancy that will be left by the withdrawing of of transportation, the merchants who import will foreigners. The more I have been able to collect be obliged to send off money in payment. In and compare facts, with respect to American and order to remedy these inconveniences in future, foreign shipping, the more I am persuaded that it it will be necessary to hold out sufficient encour-is in our power, in a very short time, to supply all agement for the construction of vessels. Perhaps it may be good policy to allow a moderate tonnage duty at this time, to be increased hereafter. Mr. MADISON.-I believe every gentleman who hears the observations from the different quarters of this House, discovers great reason for every friend of the United States to congratulate himself upon the evident disposition which has been displayed to conduct our business with harmony and concert. We have evinced a disposition different from what was expected to arise from the different interests of the several parts of the Union. I am persuaded, that less contrariety of sentiment has the tonnage necessary for our own commerce. It was said, that the foreign tonnage consisted of two-thirds of what we employed; the facts before me warrant a result more favorable to the navigation of America. It appears from the returns of Massachusetts, that she employs in her commerce 76,857 tons of American, and but 8,794 foreign; New York, 55,000 American, and 30,000 foreign; Pennsylvania, 44,089 tons of her own vessels, and 28,012 belonging to various other nations; Maryland gives employment to 35,671 tons, the property of citizens of the United States, and 26,061 belonging to foreigners; Virginia employs rather more foreign vessels, namely, 29,567 tons, [MAY MAY, 1789.] 1 Duties on Tonnage. and less American, viz. 26,705; South Carolina The tonnage employed in the seven States I have enumerated, amounts to 437,641 tons, of which 160,907 are all that is owned by foreigners. If I can draw any conclusion from this statement of facts, it is that we have a greater proportion of shipping than has been supposed. This circumstance, annexed to our capacity of increasing the quantity of our tonnage, gives us a favorable presage of our future independence. It has been said that the Eastern States have not vessels to transport our produce. I believe, from a variety of circumstances, that the vessels of Massachusetts have not been so readily employed in the Southern commerce as could be wished. This will, perhaps, continue to be the case, except our own citizens carry on our trade. At present, it is almost exclusively in the hands of British merchants, and as long as their vessels are upon an equality with ours, they will naturally be inclined to give a preference to their own; but I hope to see this matter soon rectified, and the citizens of one State enabled to assist those of another, and receive mutual benefits and advantages. To accomplish this without doing an injury to any part of the Union, I would propose to reduce the duty only to 25 cents, and increase it at the end of the next year to 60 cents. [H. of R. therefore, that tends to diminish that price will add to their embarrassment. Gentlemen tell us of the quantity of American ships we may expect, of the low price of labor, and the superabundance of materials to construct them; that they can probably be built at this time for half of what the British build theirs; yet they do not come much among us. Our foreign transportation is made principally in British vessels; indeed, we are at the mercy of foreigners in this particular, and unless they come to us we must be ruined; it would be unwise, therefore, to adopt a measure that would amount to a prohibition. The American tonnage employed in South Carolina has been stated at 31,904 tons, but it is to be considered that these are principally coasting vessels, carrying little or none of our produce, and that they enter eight or ten times in a year. This reduces the apparent quantity to a very inconsiderable actual amount, and leaves us more dependent upon foreigners than we appeared on the first view to be. When these circumstances are duly weighed, I hope gentlemen will not attribute it to a want of liberality in the Southern States, because they are not willing to go so far with them as to destroy the agriculture of their country. I have some doubts in opposing my judgment to gentlemen who have better information; but, so far as I am able to form an opinion, I think the demand for the rice of South Carolina will depend upon the price, and that the freight which is paid for taking it to market will fall upon the shipper. Rice is carried to those countries where it will come cheaper than the grain used for bread. Great Britain takes considerable quantities of rice, but it is not for her own consumption; she seeks out markets of this kind, and disposes of it to a profit, to pay her circuitous freight. Mr. SMITH (of South Carolina.)-I apprehend, She will not be able to continue this traffic if she Mr. Speaker, that on the question of interest with has to pay us half a dollar duty; for whatever is respect to the navigation law, the interests of the added to the freight must be taken off the comNorthern and Southern States are more at vari-modity. The planter will have to lower his price, ance than gentlemen seem apprised of. In my or the exportation must be cut off. If this be the opinion, it would be the interest of the Southern case, it is evident that a duty on navigation is States to give a bounty upon tonnage. In the against the interest of South Carolina and all the opinion of the gentlemen from the northward, it agricultural States. I think we have already is proper to lay a heavy duty. To be sure, I must shown sufficient attention to the manufacturing acknowledge the liberality of gentlemen in not States, by the impost duties which are agreed to. going quite so far as their interest would seem to Gentlemen will please to remember that the revlead them, but I fear they go farther than will enue from most of the articles that are taxed will serve the interest of the Southern States. The be drawn from the Southern States. We must State of South Carolina is in a very deplorable give an increased price for our necessary supcondition from the ravages of the late war; the in-plies, or refrain from their consumption; or we habitants were mostly plundered of the conveniences and necessaries of life; they had to incur considerable debts in consequence; but very heavy debts existed before the war, subject to an interest of 8 per cent. The State is also considerably in debt, the domestic debt alone amounts to a million sterling, and there will be no way to pay this off but by recourse to direct taxation. The State owes to foreigners about one hundred thousand pounds sterling, which must be paid in specie, and also raised by direct taxation. Under these circumstances, the people must endeavor to obtain the best price for their produce; any measure, must part with our productions at a less rate. This will be an evil we are unable to sustain in our present distressed condition. You will consider again, if the consumption of the imports is lessened, there will be less reason for British ships to come to us. If the quantity of tonnage is diminished, I need not repeat to the House the consequences. The British merchants will hardly send their ships in ballast to South Carolina for the sake of carrying our produce; the principal reason why we have the advantage of their trade is because we take their manufactures and give our produce in exchange. It is said we ought to H. or R.] Duties on Tonnage. [MAY, 1789. encourage our allies to come among us and parti- from direct taxes laid upon the citizens of the cipate in our trade. I do not think the difference Union. We all seem to agree that, where it can proposed between foreign nations can accomplish be done with propriety, it is most eligible to take this object. Nothing less than a duty equal to a it from trade. Under these impressions, we prohibition on British ships can do it. Our con- agreed to an impost upon goods, wares, and mernexions are kept up with them by the vast debts chandise. I believe there is no gentleman but due to her merchants and factors; it is their poli- would give up every restraint upon commerce, if cy to continue us in these commercial fetters. it were possible to do so without encumbering it Year after year they import fresh cargoes, and with protecting regulations. Then, with respect give us credit for the articles we want, taking to the proposed duty on tonnage, it will be necesfrom time to time our produce in payment. No- sary to ask if it be reasonable in itself, and such thing, therefore, will be a complete remedy, un- as will, in an adequate degree, supply the wants less you can prevent the consumption of British of the Union, without adding too much to the goods. I believe the people of South Carolina embarrassments which trade labors under? For are willing to make sacrifices to encourage the my part, I conceive the best evidence on this manufacturing and maritime interests of their point the House is in possession of arises from the sister States; but I hope gentlemen will not press conduct of the different States throughout the the matter too far, and while they are securing Union. It will appear, by referring to their laws, advantages to themselves bear too hard upon that they have generally adopted the idea of disothers. I wish, therefore, for their consent to re- crimination, and often laid it upon the tonnage. duce the tonnage on the vessels of our allies to Pennsylvania has laid a duty per ton on vessels twenty cents, and on British bottoms to thirty of nations in treaty, and a much higher one on cents. But if gentlemen persist in keeping up those who are not in treaty. Maryland has laid the rate laid in the committee it will be injurious 1s. 8d. per ton on those in treaty, and 2s. 8d. on to the trade of the Southern States generally, and those who are not in treaty, except British. The oppressive to the planters in particular, who have British vessels pay 6s. 8d. besides two per cent. not yet recovered from the losses and misfortunes on goods imported therein, over and above what entailed upon them by having their country the is paid by others. Virginia lays 3s. 6d. upon those seat of war. The distress of the inhabitants of in treaty, and 6s. 6d., their money, on the nations South Carolina has been extreme; it has engaged not in treaty, besides the addition of two per cent. them to pass a law of a questionable, not to say ad valorem on all merchandise so imported. Carfalse policy. But the time is now come to pre-olina lays a duty of 2s. 9d. sterling upon British vent a repetition of the measure; yet their debts must be paid; and it is well known that they have not a farthing of specie circulating among them, by reason of a depreciated paper medium from ten to fifteen per cent. below par. How, then, can they ever look for ease or content but by getting a good price as a reward for their industry? If the Government prevent by this a heavy tonnage duty, they must be answerable for the consequences. Mr. GOODHUE had no intention to injure the interest of the Southern States. He was sorry for their distresses, and wished every encouragement and protection should be given them. With a view, therefore, of obviating the inconveniences suspected by gentlemen, he would second the motion of the gentleman from Virginia, (Mr. MADISON,) if the gentleman would bring it forward, relative to affixing a distant day for the high duties to commence their operation. Mr. BOUDINOT.-I look upon this subject as of considerable importance to the prosperity and welfare of the United States; of considerable importance as it respects the revenue, and of importance as it affects the interests of the individual States. Whenever I speak of trade, I must own that I feel as if I were out of my element. I can only form my opinion, and determine from such facts as are before me and the information I get from gentlemen on the floor. I take it the object in view is to raise a revenue for the support of your Government, and that it must be obtained from one quarter or another; it must either come from an impost on goods, a duty on tonnage, or sugars, and 1s. 8d. only on those of other nations. This duty, both in principle and consequence, is the same as the one now under consideration. These duties upon the vessels of foreigners in alliance with us average about 2s. 6d. per ton; consequently, we are within the mark when we propose thirty cents, or a sum equal to about 2s. 3d. This being the case, I should conceive, if there be no further objection, that a duty of thirty cents was just and reasonable, and could not have a bad effect in any part of the United States. But gentlemen have stated objections from the peculiar circumstances of some of the States. These objections ought to be attended to, and seriously considered. The spirit of accommodation evinced by both sides of the House is really a subject of congratulation, and gentlemen will not press hard for a measure that militates against the interest of others. The State of South Carolina requires us to be tender, with regard to her, in this instance. She wishes to emancipate herself from the slavery in which, by adventitious circumstances, she is enthralled. Now, sir, I am of opinion that the true way to enable her to regain her strength and vigor would be to render her independent of the attendance of foreigners upon her. I think, too, that it might be done in a little time; because, under a small encouragement, our navigation would grow up, so that her sister States might supply her with vessels enough. With this assistance she would soon clear herself of her incumbrances. When she comes to consider the present regulation in this point of view, she will be satisfied with it, although it may seem to bear a little hard at first. To prove that these expectations are not chimerical, I need only mention the present situation of our India trade, a commerce of but yesterday, and yet there are no less than forty-seven sail of vessels, at this moment, on voyages to and from that country. If these go so far in search of freight, I should imagine employment nearer home would be more agreeable. I think nothing but an imposition on foreign shipping, equal to what the Americans sustain in other countries, can ever enable us to be a maritime nation; and, without this, the abundance nature has lavished upon us will be of little avail. But these advantages ought to be grasped at with caution. I would not materially injure any State by our regulations, if the object could be accomplished by other means. I am willing to go so far with the gentlemen as to reduce the duty to twenty-five cents, but to increase it hereafter in the manner proposed by the gentleman from Virginia, (Mr. MADISON.) This, I take it, will furnish us with a considerable revenue; and as the quantity of foreign shipping decreases, the revenue will still be the same, by an increase of the rate of tonnage; it will also be serving the Southern States, which I am willing on every occasion to do, as far as good policy admits. Mr. TUCKER.-It appears to me that we should rather study to give relief to the citizens of the United States than to add to their burdens. If we inquire particularly into the measure now before the House we shall find it will be very burdensome, and one that will bear unequally. It will be harder upon some States than on others, and some will not at all be affected by it. Those States that have ships of their own pay but six cents per ton upon what they use; others who have none are obliged to pay a much greater proportion towards the revenue, while it is a principle that all duties shall be equal. The exports of South Carolina are more bulky, and consequently employ a greater quantity of tonnage than the Eastern States. The gentleman from Virginia (Mr. MADISON) favored us with a statement of the tonnage employed in seven of the United States: it amounted to 437,000 tons. The proportion employed by South Carolina, by his statement, is about 60,000 tons; and this appears from the returns of the custom-house of the port of Charleston alone. There are other ports in South Carolina: the tonnage employed therein amounts to several thousand tons more than stated. This, too, was a report for the year 1787, since which time our exports have increased considerably. Certainly the quantity of rice made and exported last year is twenty or thirty thousand tierces more than was shipped the year before; of course there must be more shipping employed now than there was then. These considerations may justly be allowed to increase the proportion of the tonnage of South Carolina to 70,000 tons. Then is 70,000 tons to 437,000 the proportion by which she is represented in this House. The representation of that State is one-thirteenth part of the whole, but the revenue she is to contribute is in the ratio of [H. of R. a sixth or a seventh. Now, on this calculation, it appears she pays a tonnage duty nearly equal to double what could be required of her by direct taxation. Gentlemen have shown themselves extremely tenacious whenever they apprehended their States were likely to suffer more from a regulation than others. I do not mean to reflect upon them for this conduct. They may suppose themselves better acquainted with the local circumstances and ability of their immediate constituents than other gentlemen are, and can foresee the probable effects better. Under these impressions they give opposition. They not only have a right to do so, but it is their duty, and they would be blamable if they did not. I do the same on this occasion, on the same principle. It ought to be considered, further, that the States who have no shipping of their own, pay the duty to go out of their States, because the price of freight will be the same for American shipping as for foreign. The duty on the whole quantum will be paid, but a great proportion does not go into the public treasury; it goes into the pockets of the owners of American vessels. It has been observed, that the exports of this country cannot be obtained from any other quarter, and it is inferred therefrom, that, however much we increase the price, it must be paid by the consumer. The weight of the observation has been in a great measure removed by the remarks of several gentlemen, but I do not think the inference is fairly drawn. It is a fact, that the merchants who have had this produce, have not been able to increase the demand: so far from it, in some years they have lost thirty or forty per cent. by the business. This, then, is a proof that the burden falls upon the planter, and not ir the consumer. The quantity we send to m must be used: the price depends upon the this tity and demand. As a further proof, I into only mention, that last year there was more hen exported from South Carolina than in forthe years, and the price at Charleston fell from 14s to 10s. per cwt. By these observations, I have only attempted to show the effects of a general regulation; but if any discrimination takes place, and bears exclusively upon particular States, the measure most undoubtedly becomes more exceptionable. The discrimination on shipping will certainly raise the freight to the amount of the highest duty. Both American vessels and those of our allies will take advantage of the situation of South Carolina, and receive the same sum from us as the British, who pay a considerable part of it into the treasury. From some accounts of the customhouse, it appears that the tonnage employed at Charleston amounts to 62,000 tons; add the tonnage of the other ports, as I said before, and it will be 70,000. Gentlemen have contended that two-thirds of our shipping are American. If their proportions are just, then South Carolina will have to pay the highest tonnage we lay on the whole 70,000 tons she employs. Consequently two-thirds of this sum are given as a bounty to H. OF R.J Manner of taking certain oaths. [MAY, 1789. A petition of Arthur Greer, of the State of Pennsylvania, was presented to the House and read, setting forth that he has invented a machine which he conceives has reduced to a certainty the discovery of the true longitude or departure from any given meridian north of the equator; and praying that an exclusive patent for his discovery may be granted him for the space of twenty-one years. Ordered, That the said petition do lie on the table. On motion of Mr. SHERMAN, the House entered upon the consideration of the amendments of the Senate to the bill for regulating the time and manner of administering certain oaths. The following amendments being before them, to wit: American shipping, and but one-third goes into the treasury to increase the revenue. Then it appears that the object of the tonnage duty is not so much to raise revenue, as to give encouragement to the shipping of the other States. The Northern States will pay none of these burdens, if they export their produce in their own bottoms, or if it should happen that the owners of ships take the advantage of the high duty. The consequence will be, that they only pay a bounty to their own shipping, and the money does not go out of their State; but when it is paid by the Southern States, it goes for the benefit of others, out of the country, never to return. The gentleman from Jersey (Mr. BOUDINOT) has made some calculation of the tonnage duties under the former Confederation, and it appears to him from thence, that the States are willing to come into a tonnage duty nearly to the same amount of what is now proposed. That this is every where the case I deny. But admitting it, for argument's sake, to be as he has said, that all the States have laid duties of this nature, it only proves two things: first, that they were in a state of independence, at liberty to do what they pleased in their own ports; and secondly, that the duties or impost so collected continued in their treasury for their own use and convenience. It was a matter of no small consequence whether the sup-judicial officers of the several States who shall be plies were obtained in this way or another, for it was only a transfer from one tax to another; it was paid to the State, and did not leave the country. The Southern States are willing to submit to the inconvenience of a general regulation of commerce; but let them not bear an undue proportion of the burden. They are willing to acIcede to something further for the encouragement the American navigation; twenty cents on one by get of foreigners, and thirty on another, will dustrythe shipping of the United States consideraheavy dvantages. These we are willing to lay. I gentlemen will not insist upon forty or fifty, Mause I think it really oppressive, and will cerirainly give displeasure to the Southern States. the Mr. BLAND hoped gentlemen would get more information, and be better prepared to determine the question to-morrow, when he expected the subject would be taken up again; at present it was growing late; it was high time to adjourn. He moved the adjournment, and the House agreed to it. A message from the Senate informed the House, that they had passed the bill to regulate the time and manner of administering certain oaths, with amendments, to which they desired the concurrence of this House. WEDNESDAY, May 6. JOHN VINING, from Delaware, appeared and took his seat. The bill for laying a duty on goods, wares, and merchandises imported into the United States, was read a second time, and ordered to be committed to a Committee of the Whole House tomorrow. "That the members of the several State Legislatures, and all executive and judicial officers of the several States, who have been heretofore chosen or appointed, or who shall be chosen or appointed before the first day of August next, and who shall then be in office, shall, within one month thereafter, take the same oath or affirmation, except where they shall have taken it before; which may be administered by any person authorized by the law of the State in which such office shall be holden to administer oaths. And the members of the several State Legislatures, and all executive and chosen or appointed after the said first day of August, shall, before they proceed to execute the duties of their tion, which shall be administered by the person or perrespective offices, take the foregoing oath or affirmato administer the oath of office; and the person or sons who, by the law of the State, shall be authorized persons so administering the oath hereby required to be taken, shall cause a record or certificate thereof to be made, in the same manner as, by the law of the State, he or they shall be directed to record or certify the oath of office." of the Constitution gave to Congress the power Mr. GERRY said, he did not discover what part of making this provision, except so much of it as respects the form of the oath; it is not expressly does exist, must arise from the sweeping clause, given by any clause of the Constitution; and if it as it is frequently termed, in the eighth section of the first article of the Constitution, which authorizes Congress "to make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested United States, or in any department or officer by this Constitution in the Government of the thereof." To this clause there seems to be no limitation, so far as it applies to the extension of the powers vested by the Constitution; but even this clause gives no legislative authority to Congress to carry into effect any power not expressly vested by the Constitution." În the Constitution, which is the supreme law of the land, provision is made, that the members of the Legislatures of the several States, and all executive and judicial officers thereof, shall be bound by oath to support the Constitution. But there is no provision for empowering the Government of the United States, or any officer or department thereof, to pass a law obligatory on the members of the Legislatures of |