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H. OF R.]

The Tariff

[MAY 4, 1830.

officers, who are under the pay and eat the bread of this the custom-house at from twenty-five to thirty per cent Government, strange as it may seem, concur in this opinion, less than the cost in Europe. Another merchant in New that frauds are perpetrated, the public treasure wasted, York became the purchaser of goods, and, suspecting all and the laws of the country daily trampled under foot. was not right, pursued a similar course of inquiry, and as

It cannot be necessary to add to such conclusive ovi- certained, by the clearest proof, that they had been enterdence; and I will proceed to show in what manner these ed at the custom-bouse at from twenty to thirty per cent. frauds are perpetrated, that we may understand how to below cost. apply a remedy to this crying evil.

Io former periods, when our merchants were distinguishYour laws now impose upon most kinds of imported ed as a class of high-minded, honorable men, conducting merchandise what is usually called an ad valorem duty; their business upon fair and just principles, it was usual that is, a certain rate per cent on the value of the goods in to sell at an agreed rate per cent. of advance upon the inthe market where they are purchased. Consequently, the voice by which the goods were entered, which was exhimore they cost, the more duty they pay, and hence the im- bited to the purchaser. That mode of transacting busiporter bás a motive to bring them into the custom-house ness, which subserved the purposes of honest men, has at as low a rate as possible, that be may escape the fallen into disuse, and been superseded by an artful contrixduties. The law also provides that the importer shall, ance well adapted to disguise frauds. An invoice is made when be enters bis goods, deliver to the collector an in- up to enter the goods at the custom-bouse, wherein they voice of them, containing the quantity and value, to which are greatly undervalued ; and when it has performed this he makes oath, and upon which the goods are assessed. If, office, its work being finished, it is consigned to some dark therefore, he puts down cloth which costs a dollar a yard at pigeon hole, there to sleep, and another paper, sometimes fifty cents, be escapes half the duty, npless the fraud is called an invoice, and sometimes a statement, is exhibited detected.

to purchasers, as containing the actual cost of goods. The This mode of imposing duties bas given rise to frauds first is manufactured to delude the officers of the customs, by false invoices, in two ways ; first, by an undervaluation the last to conceal perjury. Several mistakes bave bapof goods, and, secondly, by short measure. And as I do not pened, which have exposed this infamous practice to the desire the committee to repose confidence without evi- gaze of the public. dence, I will proceed to lay before them some of the lead "A foreign importer at New York sold a package of ing facts in my possession. I derive them not from manu- goods at a certain advance on the cost. Shortly after makfacturers or farmers, who are said to be deeply interested in ing the sale, he discovered that he had sold at an advance a rigid execution of the revenue laws, but from a source on the fictitious cost, or, in other words, on the invoice by that will not be discredited, because of its attachment to which the goods had been entered at the custom-bouse ; either of these branches of industry, from a document laid be went to the buyer, and informed him of the mistake, before us by the twenty thousand memorialists from the apd insisted tliat he should make up the difference becity of New York, who are on the spot, and eye-witvesses tween the actual and the false cost. The buyer was surof the evasions of the law practised at the custom-house prised at the dovelty of the request, refused to allow any iu that city. This document has been long in print, and, thing, and told bim, if he persisted in the request, be would as far as my knowledge extends, stands unrefuted-Day, expose him to the collector of the customs. The importunquestioned. In the statements, the names of persons er pocketed the affront and went about his busipess.". are purposely omitted, but they can be furnished to any În another instance, a merchant bought a quantity of geotleman desirous of seeing them. I am inforined that goods at sixty-five per cent. advance on the sterling cost. they are among the most worthy and respectable inhabit- Soon after the buyer had left the store of the seller, he was ants of that city, and shall therefore assume that the wit- informed by the latter that the goods could not be deliver nesses tell the truth, leaving it to others to impeach their ed, because he had made a mistake in selling them by the statemeats, if it can be done. They represent, that, by wrong invoice. The buyer replied that he would take the conjoint operation of a systematic evasion of the reve. them by the prices at which they had been entered at the nue laws and sales at auction, they have been pressed and custom bouse; but the seller declined this, saying his inborde down until many have been forced to the verge structions were to sell at an advance upon prices put down of ruin; and they give the following as some of the me in a paper which had the form of an invoice, but was call. thods employed by those who disregard all moral consi- ed a statement, in which the prices were charged one hunderations, and Alinch pot at perjury, to shun the provisions dred per cent above the invoice upon which the duty had of law. A mercbant of New York ordered two thousand been paid at the custom-house ; that is, goods charged in pieces of goods from a British manufacturer, of a particu- the custom-bouse invoice at twelve dollars a piece, were far description, and after patterns of his own, purchasing put down in the statement at twenty-four dollars a piece. them at as low a rate as they could be bad in the British Other examples of this class of frauds could be cited, market. He shipped them home under an expectation of but it would be a waste of time, for the same authority realizing the fruits of bis enterprise; but when his goods says: It is a common custom, and ope well understood arrived, he found, to his astonishment, the same individual among merchants, that many foreigo importers, resident of whom he purchased, had shipped by the same vessel in this country, are in the coustant habit of receiving two five thousand pieces of the same kind of goods, to be sold invoices of each parcel of goods, one for the custom-house, by his agent, and that these goods were offered lower than and the other to sell by. It adds, that, among the importers he could afford to sell. Not comprehending how this of woollens, it is a common custom to enter goods on an could be done without loss, he investigated the matter, and invoice made out expressly for that purpose, and much be found that the five thousand pieces had been entered at the low the actual cost, averaging probably not less than thircustom-bouse from five to eight shillings Aterling lower on ty-three and a third per cent. the piece than he bad paid for the two thousand pieces ; In proof of this, and also that goods are entered by and the consequence was, that he lost about two thousand false invoices, the following fact is given : Broadcloth, endollars, while the British manufacturer made å handsome tered at the custom house as costing from four to five shilprofit by the fraud in bis invoice.

lings sterling the yard under the tariff of 1824, was freAnother merchant bought a quantity of goods entitled quently bought in at auction by the importer at two dollars to debenture, and, after exporting them, he applied for the and twenty-five to two dollars and fifty cents the yard, to esdrawback, and found it smaller than he anticipated, which cape from a sacrifice of the property !-yet, if the invoiee led to inquiry; and he ascertained where the goods bad was honest, these prices would afford enormous profit, been bought in Europe, and that they bad been passed at Another instance among maoy sball be named. A mer

jury:

facturer. In the same vessel which brought them out, which were entered at New York; and cases of goods,

MAY 4, 1830.)
The Tariff

(H. OF R. chant ordered a quantity of woollens of an English manu.

two

opening came a shipment of goods of the same kind and quality, 1, and comparing the goods with No. 1 io the invoice, it was sent by the manufacturer himself on his own account, found the goods did not correspond to the invoice; and, as which were entered at the custom house so much below he was about ordering them to be reshipped, it occurred what the merchant gare, that the former made twenty-five to him there might be a mistake in numbering the cases ; per cent on the sales, while the latter lost ten per cent. he, therefore, opened No. 2, and found the goods answerI will not weary the patience of the committee by multi- ed the description of No. 1 of the invoice. Here was po plying the proofs, for these facts show the most glaring, fraud; but it is manifest that the cases could not have palpable, barefaced fraud and imposition, as well as an ul. been so closely examined at the custom-house as to learn ter degradation of moral character, for they are necessa. what they contained, or the error would have been detectrily accompanied and sustained by the most deliberate per- ed. So, too, the chairman of the committee has informed

us that a British factor was indicted for frauds in the imI do not know, indeed, that any one questions this vio- portation of goods, during the last summer in New York, lation of truth and law; for it seems to be admitted that and, under a sense of his guilt and infamy, absconded, and English agents and manufacturers are right when they de has not since been seen in the United States. But we are clare our custom house affords the greatest facilities for not indebted to the vigilance of the officers of the customevading the revepue.

house for his detection. No, sir; for aught but appears, I stated that invoices were also false in another parti- he might have carried on his traffic in fraud and perjury cular-ig failing to give a true account of the quantity to this day, had not a misunderstanding and a quarrel rose The same authority gives well authenticated instances of between him and one acquainted with his scandalous congoods entered for twelve yards the piece, which were sold duct, which occasioned the disclosure, and a presentment in market at from fourteen to fifteen yards the piece ; by by the grand jury.

which fraud, sixteen per cent of the goods at least escaped I would do to injustice to any one ; and, therefore, here | all duty.

take occasion to say that the gentleman from Vermont I will now state a fact, which will show that frauds in [Mr. Mallary) has declared bis belief that the collector the woollen trade are perpetrated to a most alarming ex- of New York exerts himself to discharge his duty faithtent. It is known that the revenue law of 1828 establishes fully, but bas hitherto been frustrated for the want of sufa gradation of prices, on which the duty is assessed; for ficient power to execute the laws according to their spirit example, a square yard of cloth costing thirty-three and a and just interpretation. If this be so, it is time efficient third cents, and under fifty cents, is considered as cost measures were adopted; it is time these abuses were re ing fifty cents; and a yard actually costing thirty-four formed; and this custom-house, which seems to be but ceols, pays the same duty as one costing fifty cents; 80, railroad to smugglers, was organized in such a manner as also, a yard costing fifty-one cents, or any sum between to arrest the bold strides of vice and corruption. If there that and one dollar, pays the same duty as a yard costing be not force enough there to discharge the arduous duties a dollar; and a yard costing one hundred and one cents, or required, let us send additional aid, or at once repeal our

any sum between that and two dollars and fifty cents, pays statutes : for the consequences resulting from the present ! the same duty as one costing two dollars and fifty cents, state of things are too injurious to be tolerated. The

and so on. The lowest duty is forty-five per cent. on American importing merchants (I speak of the woollen these arbitrary sums, and the highest is at least three times trade) have, as the gentleman from Vermont has concluthat amount. The natural operation of the law would be sively shown, been forced from their business, or overto bring those classes of goods into the market which pay whelmed with bankruptcy; so that but a small remnant of

the lowest duty, and to exclude those which pay the high- a large body of valuable and high-minded men is left to rei est; but I am well assured that it has produced no such count the tales of their embarrassments, while their busiü effect; for goods which pay the highest duty are as abun- ness has been usurped by a class of upprincipled foreign

dant in the market as they ever were; and ihere is no visi-ers, who consider it meritorious to violate their oaths, to ble disproportion between the price they bear and the cheat the Government out of its revenues, and to trample price of those which pay the lowest duty. In fact, the its laws under foot. The dignity and insulted honor of the trade goes on, apparently, precisely as it did before the nation demand a remedy for this evil; our oppressed citi passage of the law. If the provisions of the act were exe- zens, robbed of their just rights by an illicit trade, demand cuted, this could not be 80; and we need no better or the parental protection of the Government. stronger proof to show that systematic fraud pervades the But the fatal consequences reach beyond the merchant, woollen irade throughout, as an inequality in the duty and strike at the prosperity of the manufacturing interest. would produce a like inequality in the value of the foreigu We have seen the establishments of our country fall, one productions in our market.

after another, victims to the capital and treachery of foIn confirmation of this view of the matter, as well as of reigners, who have stained our honor and stolen our birthThe the existence of frauds, there have been exbibited in right. They reach alike all our great interests ; for you

this House specimens of woollens, which were invoiced might as well say that the giant oak of the forest will not for entry at the custom-bouse at one dollar the yard, aud crush the shrubbery under it when it falls, as to say the are selling by the piece at five dollars the yard in the overthrow of the merchants and manufacturers will not largest markets of the country.

prostrate the farmers and mechanics. We live together Sir, the facts disclosed are reniarkable in their charac- as a great family, and, by an exchange of the products of ter, especially as they show that these grøse evasions of labor, we are fed, clothed, and lodged. The farmer has ilaw are in a measure legalized by passing the goods wants beyond the produce of his land; the manufacturer

through the custom-house. Whether they are carried on and mechanic have wants beyond the produce of their so boldly and successfully through the negligence of pub- labor; each supplies the other out of the fruits of his in. lic officers, or because ihey are unable to discharge the dustry, and thus it is, a whole community is made comduties imposed on them, I shall not undertake to deter- fortable and happy by a demand for the produce of the mine; but I am in possession of some facts which go to labor of each other. Foreign agents and factors, by this show that, from one cause or the other, there is a very im- system of frauds, break in upon us, and paralyze the inperfect koowledge among the officers of what passes dustry of the country. They offer merchandise to our ihrough their hands, and, of course, ab imperfect collec- farmers, but will take nothing they produce in return. tion of the revende.

They offer it to our mechanics, bot deny them all benefit

H. of R.)

The Tariff

MAY-4, 1830.

of employment. They offer it to our manufacturers, but the peace of 1815, we are placed in a new condition, the the policy of their country is so regulated as to keep our nations of Europe boving resumed that trade wbicb fell products out of her market. While Great Britain pursues into our hands by the chances of war, and driven us back this selfish course, of wbich we have no right to complain, upon our own resources; that a demand for the products if I can undersland the tone of her newspapers and peri- of the farmer no longer exists to any considerable extent odicals, they hold it to be not only meritorious, but pa in Europe; and, if labor cannot be so employed bere, & triotic, to violate the revenue laws of this country; and if to supply our most pressing wants, we should be poor and I can understand the state of sentiment in Parliameut, it is miserable: for it matters little whether a man hare the far from discountenanciog smuggling. While this state of surplus products of the earth on his bands or not, if be things exists in that country; while this determination to bave no way of disposing of them so as to meet his neces force themselves upon us, regardless of our policy and sities. of our laws, continues, we bave do alternative left, but to On the other hand, it has been contended that our meet it with energy, and protect the rights of those true policy lies in a different direction; and we have been who have reposed confidence in us. As things now are, ivvited to look at the glowing picture of former days

, be who commits the most fraud, reaps the most benefit, when our trade and commerce spread over the face of the Sir, I cannot persuade myself there is an individual in this inbabited earth, and men acquired princely furtunes al House, who will advocate the state of things I have most without an effort. We have been told that these described. Your laws ought either to be repealed or channels of commerce are not dried up, but are still open executed; and my belief is, that the interests of the country to mines of wealth, if we are not so blind to our interests require they should be enforced, and that some such plan as to shut our eyes against the truth. Those who have as that proposed by the bill is a suitable remedy for the pressed such considerations upon us, have been asked evil.

where these avenues to prosperity are? Where can the But the gentleman from South Carolina (Mr. MoDUFFIE] farmer send bis grain, his flour. his_beef, bis pork, and entertains, as he says, 'av opinion widely different, and has other products of his labor ! Does England take them! proposed, as ad amendment, the repeal of the laws of No. Does France ! No. Does any part of Europe ? No, 1828 and 1824: in other words, he proposes to reduce not to such an extent as to afford bim any encouragement the duties. I do not comprehend in what way this is to to pursue his business. Europe feeds her own population restrain men from injuring us, who are regardless of oaths, --she sells the products of her labor. but does not buy and destitute of all moral sentiment ; men who hold it such as she can produce. Those, therefore, who look for a meritorious to chent and patriotic to commit perjury: You return of prosperity from that source, dream. They cannot appeal to the consciences of such men with any bave waited, and will wait in vain, without the nations of hope of success ; it is to their fears you must address Europe change their policy. Agriculture is the foundation yourself ; you must operate upon their interests, and make of all commerce; and he who proves that it is our wisest it difficult and dangerous for them to pursue their career policy to become all farmers, must first show where we of wickedness; any thing short of this will be worse than can sell the fruits of our labor-we cannot sell to each unavailing; money is the idol of such men, and gain, other if we all work at that business, because we then whether great or small, affords sufficient temptation to supply ourselves. evil; and they must be made to understand that the Again: It has been urged that our revenue would fail, chances of loss are greater than the chances of gain. and we should be compelled to resort to direct taxes, to

The gentleman has indeed had the candor to acknow- support the Goveromént and pay the national debt. Preledge that his object is not so much to correct abuses, as dictions of this kind were made in the bold tone of absoto revise avd modify the revenue system, by reducing the lute confidence; and ardent appeals were made to the duties generally; and his long impassioned argument bas public, to repudiate a policy which would take from labeen addressed to us with the apparent inteut to convince bor its hard earnings to supply the public treasury. Time us of the propriety of adopting such a measure. I did bas falsified these prophecies, and the complaiot now it hope this bill would be suffered to rest on its own merits, that the Government will be ruined by the surplus funds And receive the approbation or disapprobation of the in the treasury, because every portion of the Union is House according to its unbiased judgment. I did hope scrambling to obtain, in one form or another, its portion of the exciting subject of modifying the tariff of duties gede- the money. rally would not be brought forward to embarrass. it ; but, Again : It was predicted that, where duties have been as the gentleman bas thought the opposite course wise and imposed, goods would rise to an exorbitant price, and the expedient, I shall meet it, not with a detailed examination consumer be heavily burdened; but bere again the press of his elaborate speech, but' of the leading propositions diction bas fuiled, for the consumer bas found bis supplies op which his discursive argument was founded. If the cheapened. premises can be proved false,' the conclusions must be

Gentlemen are much puzzled with these results, but still erroneous. I am aware that this subject, though one of condemn the tariff with as much zeal and vehemence as if deep interest to the country, one on which hang its pros every propbecy had been fulfilled to the letter. They seem perity and happiness, is, in its details, dry, and calls for an to be aware of the embarrassments they must encounter exercise of patience on the part of the committee; yet 1 in establishing the old notion that a duty is a tax to the hope to be indulged with their attention, though I may amount of it upon the consumer of foreign productions, for fail to reward it.

they are met with the fact that an increase of duties bas The tariff, as it is called, which means nothing more pot produced that result. than the revenue system wbich has existed under various The gentleman from South Carolina, being aware that modifications ever since the formation of the constitution, these objections are not easily surmounted, seems to have bas occupied much of public attention for several years discarded the old theory as false, and has introduced in past. The tope of complaint from the South, against the doctrine new in many of its features and consequences. laws, has been loud, vehement, and almost unremitted. I, for the first time, saw the substance of it in a ducument

The support of, or opposition to, the policy, bas almost from his State, called “ An Exposition and Protest," which become the test of parties ; an as often as the subject has emanate from the Legislature, and which I read with tou been agitated here, (and it is up in one form or another much baste to remember with great accuracy. The theory every session,) it brings with it great ardor and power of is etrenuously maintained, that duties are taxes, although argument in the discussion, from all sides of the House. goods are made cheaper under their operation; and to The adyocates of the policy have contended that, since carry the doctrine out, it is asserted that tbe old idea that

MAY 4, 1830.)

The Tariff.

(H. OF R.

the consumer pays the tax, is founded in mistake, for it is the on the raw material shipped from this country, whatever | producer that bears the burden. Exports, says the gen- duties may be collected at our custom-houses on any kind | tleman, pay the duty on imports; and as merchants and of goods that may be purchased with the avails. Is it true

factors are mere agents, the planter is the exporter of cot- that the purchasers in the market control it? Every man | ton, tobacco, and rice. Two-thirds of all the exports, he who does business, feels that the market is controlled by | says, consist of these articles. The imports, be adds, are another and greater power; he feels that commodities are i purchased with the exports, and two-thirds of them are dear or cheap, according as the supply is great or small,

paid for in these articles ; and, as the exporter pays the duty, and that it is the supply which fixes the price, and not the it follows that the planters pay two-thirds of the whole will of the buyer. If it depends on the will of the buyer, revenue; that is, sixteen millions of dollars out of twenty- he might as well purchase at one cent the pound as at four millions, which is about the annual amount of revenue. twelve.

This burden, be says, falls on less than three millions of Again: If the buyer has the power to fix the price, i population, while the remaining dine millions pay only and make such allowances and deductions as he pleases,

eight millions of revenue, because they export only to that for duties imposed on English manufactures by our tariff, amount.

that power will enable him to deduct any other duties or If this be true—if sixteen millions of revenue are drawn taxes to which his business may be subject; and he would, from the earnings of less than three millions of our popu. of course, deduct a duty of six per cent. upon cotton lation appually, I agree that the burdens are greatly dis- which is imposed in England, and paid into the treasury proportionate-that the South are grievously oppressed, of that kingdom. He can provide for this with much and it is the duty of this Government to afford immediate greater facility, thập for the duties on the various kinds of relief. But, sir, the very statement itself strikes the ear goods wbich are bought with the avails of cotton, and exas incredible. Is it true? Can it be true that less than ported to this country. If he has the power to provide three millions of persons pay sixteen millions of annual tax ? for the one, he surely' has for the otber. If the planter If so, the planter has a business yielding such a profit as carries rice to the same market, it is subject to the same our people are unacquainted with. I say, do people since controlling influences, and the duties which are three dolthe foundation of the earth ever did sustain such a bur- lars and thirty-three cents the hundred, may be deducted den for a succession of years; and as the doctrine is at va from the value, and thrown upon him in the same way. riance with all received notions, it ought to be sustained by So also of tobacco, which pays a duty of three shillings strong proofs, before it gains credence. The gentleman sterling on the pound, which is much more than the article is says, it is self-evident; but, to my dull apprehension, it is worth; and consequently the planter would upon this theory, far, very far, from being 80; and I regret that the evidence lose bis produce, and be brought into debt for the balance which makes it so clear to him, has not been more fully of the duty. This singular theory discloses a new princistated.

ciple in finance, which must come into high estimation; for, I will

, if the committee will lend me their patience, en if the doctrine is well founded, a nation may so regulate deavor to point out some of the obstacles which must be its trade, as to draw all its revenues from the foreign States surmounted to establish this doctrine. To disembarrass with which it deals. the question, I shall follow the example of the gentleman, The next consequence, which obviously results from by throwing out of the way the machinery of trade, and this doctrine, is, that our tariff bears with the same force considering the planter as the exporter. Suppose, then, he upon all foreign countries which bring cotton, rice, and ships a cargo of cotton for the English market, where it tobacco into the English market, as it does upon the is sold. The theory of the gentleman is, that he must re. suuthern States. ceive goods in pay, for he cannot command specie; aud if The planter of the South meets, as com petitors in that these goods are subject to a duty when they arrive in this market, the planter of Brazil, the planter of Egypt, the country, the amount paid at the custom house is a tax upon planter of the East Indies, and the plnpter of the West the cotton itself, as a raw material, and the planter actually Jodies. If the duties are taken out of the raw material, loses it, as much as if an excise were laid upon it before because of our tariff, then there ought to be a discrimina: it was shipped; and I understood him to say, and repeat, tion in the price of cotton from different portions of the that it made no difference with the planter, whether the world; and it should bear a higher or a lower price, actax, as be called it, was imposed directly on the cotton in cording as the duties on manufactured articles are bigher bis hands before it was shipped, or on the goods, as it now or lower in the country from which it is brought. If, for is, at the custom house. This doctrine, he says, applies to example, the duties in Brazil on British merchandise are all imported goods thus purchased, be they consumed by fifteen per cent., and here they are fifty per cent., then wbom they may

American cotton ought to sell much lower than Brazilian. I will now state his reasons given in support of this So, if there be no duty on British merchandise in her own theory, as I understood them. He said, that if the manu- colonies of the East and West Indies, then the difference facturer in England could raise the price of bis manufac- ought to be still greater. But no such discrimination tured articles, as duties are imposed,' he would then throw exists; for cotton of the same quality bears in the inarket the burden on the consumer ; but be fiods himself upable the same price, from whatever country it may come ; and

to do this, and turns round on bis heel, and takes the it follows, that, if the tariff causes such a heavy loss on the B

amount out of the grower of the raw material. The manu- raw material to the planter of the United States, it defacturer says, you must receive your pay in goods, of some presses the cotton of Brazil and Egypt io the same ratiosort or other, in our markets; we cabnot raise the price, Day, it occasions the same disastrous consequences to the and must take the duty out of the cotton; and thus the colonies of England herself, for it levels all cotton to the price of the raw material is reduced, and the earvings of same standard. Upon this principle, if Brazil were to the planter taken from him. Being aware that the assent run her duties on imports above vurs, her laws would at of the holder of cotton is necessary to a bargain of this once bear upon this country, and reduce the price still sort, the gentlemao provided for that difficulty, by asserting, lower. If, then, the planter of the South, as the gentlein unqualified terms, that the purchaser is enabled to ac- mao says, is borne down and ground into the dust by the complish this end, because he controls the market, and es- tariff; if be is robbed of the fruits of his honest labor, and tablishes the terms op which he will buy.

driven to desperation, it produces the same pernicious efNow, let us look at this proposition, and see what con. fect upon the planters of other countries--for they get sequences must follow, if it be well founded. The ma- the same price, and no more ; and that price is measured pufacturer in England controls the market, and assesses out and regulated by our tariff. This, I believe, is giving

H. of R.)

The Tariff

(MAY 4, 1830,

a wider scope to the operation of our laws, and diffusiog | tleman can maintain that the South paid sixteen millione, their power more broadly, tban has ever been imagined by or two-thirds of the anuual revenue; for if the burden be the most euthusiastic opposer of the tariff,

not forced upon them in this mapper, then they pay as [Mr. McDUFFIE rose to explain, because he perceived consumers only: but the gentleman has repudiated this as [he said) that the gentleman from Massachusetts intended a false notion. He must be aware, also, that the ratio of to answer bis argument fairly. The gentleman had stated consumption and exportation is widely different ; for

, that cotton of the same quality bears the same price, come admitting that less than three millions of our population from where it might-agreed—but the southern planter furnish two-thirds of the exports, yet every body knows receives goods op which he pays a duty of two bundred that the whole nation are consumers of imports, and pro and fifteen per cent., while the planter of Brazil gets bably the nine millions of persons who export nope of the goods op which he pays only fifteen per cent; that is the cotton, rice, and tobacco, are the greatest consumers of reason why the southern planter is ground down and the foreign merchandise, as they live in a colder climate, and other is not ]

bave more wants. But, allowing that they cousume only Mr. DAVIS resumed. I shall consider that by and by. an equal quantity, the argument of the gentleman fails

, I said, if the position of the gentleniap is well founded, for, instead of consuming forty millions out of sixty, the he proves that our tariff bears on all cotton-growing cous. South would then copsuine only fifteen millions out of that tries with the same weight as on the southern States, be- amount. I say, therefore, that the main proposition, that cause the price of all cotton of the same quality, come the South pay two-thirds of the revepue, because they from where it may, is the same. Now, if the duties are grow two-thirds of the exports, falls to the ground, unless deducted from the raw material, and paid, as the gentle it can be shown that they pay it in some other way thai man asserts, by the grower, because ihe purchaser con- as consumers, trols the market, they it is clear that less would be de But I will, for the present, dismiss this part of the subducted from Brazilian cotton than from ours, and there ject, and proceed to point out other obstacles, which must would be a discrimination in the price-a difference iu be surmounted in establishing the doctrine which the geti the value; but I have shown that there is no difference, teman appeared to me to contend for, and which is surely, and the gentleman admits it. It would seem, therefore, set up by the exposition and protest of the Legislature of to follow, that our duties on British merchandise do not his State. regulate the price of cotton, and have little to do with it. If_the purcbaser of raw cotton, and other exports in [Mr. McDUFFIE again interposed to explain. His ar. the English market, bas the power imputed to him of congument was not that the Brazilian grower could not raise trolling the market in such manner as to reduce the value his price, but that the American grower could not.] I of our exports forty-five per cent., as is alleged, because fear'I do not fully comprehend the gentleman from South we collect forty-five per cent. on imports in this country; Carolina. I was endeavoring to follow out his argument, if he can thus, at pleasure, cut dowo the value of our stk and to show some of the difficulties be must surmount to ples, then it follows, that he pockets the enormous profit maintain it. I understood him to state, in the outset, that of forty-five per cent. on all the vast consumption of cotexports pay the duties op imports ; and to deduce as an in- tou goods in the British dominions, for on this consump ference from the fact, that the South paid into the trea- tion there is no impost, and there is no apology for re sury two-thirds of the revenue of the United States, be- ducing the price of the raw material which enters into it, cause the cotton, rice, and tobacco, raised and sent abroad because of our tariff. The reduction is to meet the duby that portion of the Union, constitute two-thirds of the ties bere, and here only; but as it reaches all cotton, st exports.' I understood bin also to declare, in the com- produces tbis result, if it be true; as bas been asserted, mencement of his speech, that the old potion, that the that the tariff causes a decline in the value of exports ei consumer of imported merchandise pays the duties, by forty-five per cent., and if it be true, as the gentleman giving an increased price for what he buys, was founded from New York (Mr. CAMBRELENG] has alleged in his in mistake and misapprehension. Io confirmation of these report on commerce, that it gives to the British manufac declarations, I understood bim to say, and repeat, that it turer a premium of eleven dollars and sixty cents on every made no difference whether cotton, rice, and tobacco piece of broadeloth worth two dollars per yard, the law were taxed to the amount of sixteen millions of dollars ju of 1828, wbich seems to be in bad odor in England, the bands of the growers, before they were shipped, or ought to be esteemed by the people of that country as that sum was collected on imported merchandise, bought more precious and valuable than the acquisition of the in foreign markets with the avails of the articles, for, in mines of South America. Yet, with all their sagacity in either case, the whole loss fell on the planter. From the trade, they are so stupid as to overlook these vast advanassumptiop of these groupds by the gentleman, I thought tages, and actually complain of our policy as parrow, selfI was justified in inferring that be meant to declare that ish, and illiberal. They must be either short-sighted, if the consumer did not pay the duty, but the grower of the they view the matter differently from gentlemen here. raw material did; for I could not persuade myself into the Another objection to this kind of reasoning, is, that it is belief that he meant to assert that less than three millions utterly impracticable to take the duties on imported mer. of inhabitants consumed forty million's worth of imported chandise out of exports, and apply them in the way sup articles, while tbe remaining dine millions consumed only posed. The whole scheme is founded on the idea that he to the amount of twenty millious. I was led also to this who exports the products of this country to foreign marconclusion, because the gentleman said that the manu- kets must receive bis pay in merchandise. Without stopfacturer of England would throw the duty upou the con- ping to question the soundpess of this position, I will ask sumer, by raising the price of the articles on wbich the the attention of the committee to one or two considera duty was imposed, if he could, but he could not do it be- tions, which will show that po such process of reductia cause he could not raise the price. Indeed, the whole in price can take place. A cargo of cotton is shipped to course of his reasoning appeared to me to be based on the England, and there sold to a manufacturer of that mate hypothesis that the price of the raw material is reduced rial. The trade is not for goods, but money, which is in the market by the tariff, and thus the planter is sub- perhaps to be expended in merchandise of fifty different jected to great loss. I am not able to comprehend how kiuds--some subject to no duty, some to a low ope, and the argument can be explained upon any other supposi- some to a high one. Now, sir, cau apy thing be plainer tion, than that the price of the exports iş reduced in the than that the purchaser enters into no negotiation about foreign market in the manner I have described; for, if this those duties ; that he makes no terms of purchase con be not the case, I am at a loss to understand how the geo-forming to them? Can any thing be more obvious thao

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