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Dec. 9, 10, 11, 1828.]

Drawback System.

(H. OF R.

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In support of this resolution, Mr. STRONG observed, (with a view to give time to Mr. McDUFFIE to examine that the object contemplated by it did not fall within the the provision) the farther consideration of the bill was prescribed duties of any one of the Standing Committees postponed until Monday next. of the House, and it was only for that reason that he asked its reference to a Select Committee. The inquiry he

THURSDAY, DEC. 11, 1828. wished such Committtee to make, was not merely whether

EXTENSION OF TIME FOR DRAWBACK. the proposed mode of publishing the laws was practicable, but whether it would not be a very economical mode of pub The engrossed bill extending the term within which lishing them ; whether it would not possess great and signal merchandise may be exported with benefit of drawback, advantages over every other mode hitherto pursued. The was read a third time, and the question being, “ Shall the present state of this matter was matter of serious public bill pass ?” complaint ; he might almost say, it amounted to a public Mr. WICKLIFFE said, when the bill was ordered to an calamity. Few copies of the laws were at present pub- engrossment, he did not correctly apprehend the effects lished, and still fewer dispersed through the country. upon the revenue of the country to be operated by the There were vast districts of the United States where no first section, and he thought it probable the House did copy of them could be obtained, without travelling miles not devote sufficient attention to the bill when under and miles The result of such a state of things was, that consideration on yesterday, To the extension of the the people did not, in fact, know what the laws are. time for allowing goods entered for exportation the Should the inquiry be committed as he desired, it would benefit of drawback ; he did not see any valid objection, elicit many interesting facts, some of which were within and of course would be willing to vote for the bill if that his own knowledge ; it would involve no expense ; and was its only effect; but the first section makes an innovawould obtain and embody much useful information, which lion upon the settled revenue system of this Government the House might act upon, either at this, or some future from its origin. Our earliest legislation has charged a session.

certain rate of per cent. upon the amount of debentures, The resolution was carried, and a Select Committee of varying according to circumstances in its amounts. For five members ordered to be appointed, in conformity many years past it has been fixed at 21 per cent. This thereto.

21 per cent. has yielded to our revenue annually about TUESDAY, Dec. 9, 1828.

the sum of 150 to $200,000. The first section of this bill The House was principally occupied this day in discuss- proposes to repeal so much of our revenue law as imposes ing the bill for the erection of a new Territory, to be styled this 23 per cent. on the amount of duty on foreign merthe Territory of Huron. The bill, after undergoing several chandise imported into the United States (principally on amendments, was ordered to be printed.

foreign accounts, owned by foreign merchants and manu

facturers) in quest of a market. WEDNESDAY, Dec. 10, 1828.

I cannot be mistaken, said Mr. W., when I state that

this bill will have the effect of subtracting from the reveDRAWBACK SYSTEM.

nue of the country annually $150,000, three-fourths of The House went into Committee of the Whole on the which is now paid by foreign merchants and manufacbill "extending the term within which merchandise may I will not undertake to point out the propriety be exported with the benefit of drawback.”

of levying this contribution upon the merchandise of Mr. CAMBRELENG briefly explained the object and foreigners, considered as a revenue measure, or as a just operation of the bill, which simply extends the time with tax for the trouble, expense, and risk, encountered by the in which goods imported are entitled to drawback, from Government: the legislation of the nation

thirty years one year, as it is now limited, to two years. This, Mr. C. should supersede the necessity of such labor on my part. stated, would obviate a great inconvenience, at present ex Let not gentlemen deceive themselves by the idea that perienced, and would relieve the carrying trade from a this measure is to operate to the advantage of the Amerirestriction which operated injuriously upon it. In adopt- can merchant, citizen, or manufacturer. Its beneficial ing this course, the United States would only be treading in effects will be mainly enjoyed by the foreign merchants the steps of Great Britain, France, and other commercial and manufacturers. They are the great owners of the nations. The bill also abolishes the two and a half per goods entitled to the benefit of drawback. We have our cent. at present retained by the Government, and permits table groaning with the remonstrances of the American the whole duty to be refunded.

merchants and citizens of our commercial cities, praying The Committee then rose, and reported the bill without Congress to impose a duty on the sales made at auction, of amendment, and it was ordered to a third reading. foreign merchandise, because of the facilities which such

sales afford to the foreign importer and manufacturer, to DRAWBACK ON REFINED SUGAR.

the great injury, if not ruin, of the American merchants, The bill allowing an additional drawback on sugar and we are by this bill called upon to grant them greater refined in the United States, and exported therefrom,” was facilities, and that too at the expense of the public Treasu. then considered in Committee of the Whole.

ry. I shall say no more. I have stated my objections to Mr. CAMBRELENG gave a short statement of the ob- the bill. I do not think I am mistaken-I know I am not ject of the bill, which raises the drawback on imported in one respect—that is, the loss which your Treasury will sugars, refined within the United States, from four cents sustain, of something like $150,000 per annum. It is for to five.

the House to say whether this loss shall be sustained. I Mr. McDUFFIE inquired whether the bill was intended, desire that, when the question is taken, it may be taken by and so drawn, as to include sugars of native growth, refin- yeas and nays. ed here, as well as those refined from foreign material. Mr. CAMBRELENG, in reply to Mr. W. expressed

Mr. CAMBRELENG replied in the negative; but, at his regret that the gentleman from Kentucky had not the same time, declared it to be his opinion that, to include chosen an earlier opportunity to offer his objections to a the class of sugars to which the gentleman referred, would part of the bill ; when, if they had been sustained by a be sound policy. This doctrine he held himself ready to majority of the House, it might have been amended, acvindicate ; but as it was not involved in the present bill, cordingly. He would, however, endeavor to show, that the he should not, at present, court a discussion on that sub-gentleman had entirely misconceived the object of the deject.

duction in question. He says we are about to relinquish a reThe Committee then rose, and, at Mr. C's suggestion, venue of one or two hundred thousand dollars annually, and

Vol. V.-13

turers.

H. OF R.]

Extension of Time for Drawback.

(Dec. 11, 1828.

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therefore the bill ought to be rejected. The statesman Mr. BARNEY observed, that the honorable gentleman who framed the original act never contemplated that this from Kentucky appeared to have taken up an impression deduction from the drawback should ever operate as a on this subject which was directly the reverse of the actax upon the carrying trade; it never had been the policy tual state of the facts. The gentleman seemed 10 suppose of the country to exact a revenue on merchandise in transit; that a large proportion of the amount of goods imported no commercial country that he knew of had ever adopted for drawback, is on foreign account. The reverse is the a measure so injurious to its own navigation. The sole truth. By far the larger portion of our whole imports object contemplated by the original act of 1789--the first are for the consumption of the country, and those intendact levying duties on importation-was to indemnify the ed for re-exportation are imported almost entirely by our Government for all charges incidental to warehousing own merchants. When foreign merchants ship those merchandise, which might be exported with the benefit of goods, which are the usual subject of our drawback sysdrawback. It was never intended to impose the smallest tem, they ship them direct to the ports where they intend fraction of tax on such merchandise for purposes of reve- finally to send them, without entering our poris at all.

The act of 1789 authorized a deduction of one per But when our own merchants import for drawback, it is cent. from the moderate duties of that day, when the ad valo- usually with a view to re-export the cargoes to the West rem rates were generally at 5 and 7} per cent. The charge Indies and South America. The bill operates on Ameriwas equal to about five cents on every hundred dollars, can merchants almost exclusively, and its object is to beand was exclusively designed to cover all incidental ex- nefit them, and not foreigners. It makes, in fact, the ports penses. Under the stamp act, a stamp duty was imposed of the United States free ports, and its operation will be on debenture certificates; and to cover this expense an to enable the foreign merchant to find here all those misadditional deduction was made in 1800. From omission, cellaneous kinds of merchandise which are requisite to or from some other cause, when the stamp duties were re- make up an assorted cargo The retaining of the two pealed, the deduction from the drawback was not restor- and a half per cent. of duties operates as an injury to the ed to its original rate. We have since very considerably carrying trade-a trade which no wise nation will tax for increased the imposts to 30, 40, 50 per cent, and upwards, revenue. Great Britain has in her colonial dominions, until the amount now deducted for the mere expenses of near our own frontier, free ports, which she has opened warehousing, is sixteen times the rate originally contem- for the very purpose of rivalling us in this trade; and the plated, while the expenses have, in the mean time, actually result of this wise measure, on their part, is, that British diminished. There was no cause now existing for retaining merchants are enabled to save almost the whole of the any portion of the duty for the purposes mentioned in the freight. Under such a state of things, our obvious polioriginal act. Every expense that could possibly be charge. cy is to free our trade from every shackle. Our trade to able on merchandise deposited in our public stores, and South America is increasing every hour, and has already every custom house fee, must be paid, before it can be so far advanced as to constitute one-third of our whole extaken out of the possession of the officers of the customs. ports. Under this state of things, we ought to encourage The property, while under the care of Government, was it by every means in our power. Mr. B. concluded by at the risk of the owner; the Government was in no manner again insisting that the operation of the bill would termiresponsible for its safety. We were already, by existing nate on American, and not on foreign mercantile interests. laws, amply indemnified for every expense incidental to Mr. BUCHANAN said, it was his intention to vote in merchandise designed for exportation, and the deduction favor of the bill, and he wished, in a few words, to state from the debenture could not be defended on that ground. his reasons. It is true, as the gentleman from Kentucky He was not aware that any other commercial nation had (Mr. WICKLIFFE] has stated, that the passage of this bill made any such deduction, unless it was in lieu of all inci- will diminish our annual revenue from $130,000 to $160,dental charges for storeage, &c. The sole object of the 000. The question, then, is, will the object sought to bill (said Mr. C.) is to place our foreign trade on the wise be accomplished more than indemnify the country for this and liberal footing on which other nations had placed loss of revenue ? He thought it would. The bill rests theirs. But even is we pass this bill, our navigating in- upon a very simple principle. Great Britain is struggling terest will not enjoy advantages equal to those granted by to obtain the carrying trade of the world. She has esother nations to this branch of trade. In Great Britain tablished free ports throughout her extensive dominions, merchandise may, upon application to the Commissioners in which her merchants may deposit foreign merchandise of the Treasury, remain in entrepot indefinitely for years, without the payment of any iransit duty. The wise prinwithout even an entry being made, or the payment of any ciple upon which she acts, is, to burthen her foreign trade duty. According to our laws the duty must be paid at as little as possible. It passes free through her dominions the expiration of certain terms The navigating interest to foreign countries. of this country solicited no favors they asked merely * The question, then, is, shall the American merchant be to have restrictions taken off which actually operated as placed upon the same footing? Great Britain is our great an encouragement to the navigation of Great Britain and rival for the carrying trade; and ought we not to enable France, at the expense of our own commerce.

To tax

our merchants to struggle against this powerful competithe carrying trade was substantially nothing less than levy- tion with the same advantages which her merchants posing a toll on merchandise for the privilege of crossing the sess ? Our laws impose a transit duty of two and a half Atlantic ocean. But there was another and a stronger per cent. upon the existing rate of duty, on all foreign objection. If the 24 percent. deduction from the duty merchandise imported into the United States, to be transshould be continued, its effect would be to impose a dis- ported to foreign countries. This operates as a discrimicriminating duty on our own navigation, in favor of the navi- nating duty in favor of the English and against the Amerigating interests of France and Great Britain, our compe can merchant. All other circumstances being equal, it titors for the profits of the carrying trade. Such a measure would, in effect, be a premium to that amouni, to enable would be detrimental not only to the navigating, but to the foreign merchants to undersell our merchants in foevery interest in the country It would be utterly incon reign markets. The simple question, then, is, shall we prosistent with every rule of sound policy, and with the tect our foreign commerce by affording it the same adpractice of all nations sharing in the carrying trade of vantages with the foreign commerce of Great Britain ? the world. The bill would be essentially serviceable to At the last session of Congress, Mr B. said, he had exour foreign commerce, and would enable us to contend erted all his feeble abilities to promote the passage of a with other nations in a branch of navigation which had | law for the protection of agriculture and manufactures. been uniformly a favorite in all commercial countries. He considered commerce equally entitled to our favor.

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Dec. 12, 1828.

Northern Boundary of Illinois.-Credits on Duties.

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quest of

Its protection was equally a part of the great American lands had hitherto been surveyed by the use of the magneSystem. The duty which he felt he owed to the com tic compass. Now, it was perfectly well ascertained, and merce and the mercantile interest of the country, would was admitted by all persons acquainted with the subject, not suffer him to vote against this bill. It was calculated that no line could be run with accuracy in that manner; to build up our foreign trade, and enable our merchants it required astronomical observations, and these taken with enter into a fair competition with the merchants of the other the best instruments. Should the present bill pass withcommercial nations of the world.

out amendment, the line in question would be run in the The yeas and nays were then taken, and stood as fol- old way, just as all the other lines had been run, which fows: yeas 153, nays 28.

had given rise to so many disputes and difficulties, and the So the bill was passed, and sent to the Senate.

other bill will be without use or effect. What he wished

was, that, while the State of Illinois united and took her NORTHERN BOUNDARY OF ILLINOIS.

full share in the survey, the United States should furnish The House then went into Committee of the Whole on the engineers and instruments. This would settle the the bill to ascertain and survey the Northern boundary of line definitely, as the gentleman desired, and would octhe State of Illinois.

casion no delay. Mr. S. then renewed his motion that Mr. P. P. BARBOUR, who had charge of the bill, the bill lie on the table ; but again withdrew it, at the rebriefly explained its provisions ; after which,

Mr. WING, delegate from Michigan, moved an amend Mr. DUNCAN, who said that there was this differment, the effect of which would be to authorize the Presi ence between the two bills—one provided for running a dent to appoint a Commissioner to run the boundary line line, the other only for fixing points. He had always unin question, instead of assigning that duty to the Surveyor derstood that Colonel McCrea, the Surveyor General now General of Illinois, &c., as proposed by the bill; but the designated in the bill, was a most competent engineer, amendment did not succeed.

very scientific, and a practical man, who enjoyed, and he Mr. STRONG then referred to another bill, having the believed justly, a high reputation.

He could not consame object in view, but assigning the duty to the United ceive that there was any necessity for employing others States topographical engineers, and providing that the line for this duty. Besides, the other bill, to which the gentlebe run astronomically, without relying on the compass.

man from New York alluded, might never pass. He himShould both bills pass, the survey would have to be made self happened to know that there were many gentlemen in both ways, and a useless expense incurred. Mr. S. of the House greatly opposed to it; and he was loath to thought it would be better to lay aside this bill for the expose the success of so important a measure to such a present, and, when the other should come up in course, to risk. He therefore hoped the present bill would be oramalgamate the two bills into one, by which the objects dered to its third reading, and suffered to pass without of both would be accomplished ; the line would be run with delay, accuracy, while, at the same time, the State of Illinois Mr. WING said, that the contemplated line separated would participate in the settling of it. Mr. S. then moved the territory he had the honor to represent from the State to lay the bill on the table for the present; but withdrew of Illinois, and its settlement was an event greatly dethe motion on request of

sired by all concerned. But it had hitherto been his misMr. P. P. BARBOUR, who thought the two bills were fortune never to succeed in having the circumstances of not at all incompatible, and did not require to be united. the case fully investigated, and the various facts on which Should this bill now be acted upon, the other could be a just settlement of this bonndary depended, thoroughpassed in its order. This bill provided for the running of ly developed. It was very desirable that whatever was the line, the other for fixing points between which it was done in this matter should be done understandingly. The to be run. Both might be carried into effect without any present bill had, he believed, been reported without much interference.

investigation. He had been informed, indeed, by a memMr. DUNCAN was opposed to any delay. The pre- ber of the Committee, that it had been considered by them sent bill had several times before been under consideration, very much as a matter of course. He was aware that and had once actually passed this House, but too late for the State of Illinois wished it speedily run ; but, as had consideration in the Senate. Much interest was felt on been correctly stated by the gentleman from New York the subject in Illinois, particularly in the northern part of (Mr. STRONG), it could not be run accurately without that State, where more than 20,000 people were now set- careful astronomical observations. He could not conceive tled in the vicinity of the lead mines. Great inconve- that the gentleman from Illinois would insist upon the bill nience was continually sustained, for want of having this passing to a third reading to-day. A few days delay line definitely seuled. A portion of those lead mines was could not be of such very vast importance, and he should, claimed by Michigan and by Illinois, and it was all im- therefore, renew the motion to lay the bill, for the present, portant that the controversy as to jurisdiction should be on the table. brought to an end as speedily as possible. The other bill The motion prevailed—ayes 90, noes not counted. had no bearing, that he could see, which ought to delay the progress of this.

Friday, DECEMBER 12, 1828. Mr STRONG replied, that it was far from any wish of his to interfere, either with the State or the ierritorial

CREDITS ON DUTIES. rights involved in this matter, or at all to delay the running of this line. All he wished was, that the boundary SON, on the 10th instant, was called up :

The following resolution, moved by Mr. RICHARDline, when it was run, should be run correctly. a singular fact, but such was actually the case, that no Resolved, That the Secretary of the Treasury be ditwo of the observations made by our surveyors, with a rected to lay before the House a statement of the amount view to fixing the latitude of this line, had yet agreed. of import duties on which, at the several custom houses Whether this was to be attributed to the incompetency of of the United States, credit has been allowed during the the officers, or the imperfection of the instruments they eight years next preceding the 4th of March, 1828, toused, he could not pretend to say—but such was the fact. gether with a statement of the effects of the credit allowed Now, the other bill, to which he had before alluded, aim- by Government : ed at remedying this evil, by furnishing for the survey the First. On the Revenue ; best means, both as to officers and instruments, which Second. On the Navigation; were at the disposal of the Government. All our public Third. On the Mercantile Interest;

H. OF R.]

Drawback on Refined Sugar.

[Dec. 15, 1828.

Fourth. On the Manufacturing Interest of the United proportion of the custom house expenses, &c. on trade. States."

To increase this bounty is not only to repay all the duty Mr. CAMBRELENG suggested to the honorable mover that has been received on the sugar used, but it becomes that the task imposed by the resolution was probably more an actual charge on the community, for the benefit of the 'extensive and onerous than he had imagined. The report sugar refiner. embraced by it would be larger and more laborious than Mr. S. said, he would not enter on the history of this the usual annual report from the Treasury. If the gentle drawback ; it originated in the tax on refined sugar, in the man would consent that the resolution shall lie for the pre- law of 1794, and had reference to supplying the Treasury sent on the table, it might probably be modified in such a instead of draining it, as has since been brought about. manner as to meet the views of the mover, without impos- He should not have interfered with the existing law; but, ing so great a burthen on the Department.

when the attempt was made to extend the evil, he must Mr. RICHARDSON observed, in reply, that he had object." If the principle is to be adopted, that, when imoffered the resolution under a conviction that the informa- ported raw material, paying a duty, changes its form into tion for which it called was needed by the House It was ano:her article, a bounty or drawback, equal to the raw notorious that the subjects of the warehousing system, and material used, is to be allowed on its exportation, its of commercial credits, is now agitated in our cities, and effects should be at once looked into. Carry this principle there can be no question but the attention of Congress farther, and see the result. You have an existing duty on will shortly be called to it. For himself he confessed imported wool, for the benefit of the farmer. If you give ignorance on many topics involved in the general subject, a bounty or drawback on cloth manufactured of this in the and he supposed it was not presuming too much to suppose United States, when exported, who will use domestic that others might be in the same situation. Under such wool? How can the interior manufacturer cope with the circumstances, he looked for information to the head seaboard manufacturer in the market? You have a heavy of the Treasury—that faithful, able, and intelligent officer, duy on imported bar iron; but, if you allow a bounty or who presided with so much credit to himself and the drawback on nails, chain cables, or other manufactures country over our fiscal concerns. If it were indeed true from imported iron, who will use domestic iron to manuthat any of the topics included by the resolution he had facture articles for exportation ? All the manufactures offered were of such a nature that the answer would from domestic material will thus be excluded from compebe impracticable or unreasonably burthensome, he would, tition in the foreign market. This, too, will be the case with pleasure, consent to modify it. He was willing with sugar. He that manufactures foreign brown sugar to strike out all that part of it which followed the first is to have five cents per pound premium for exportation ; clause, if that would satisfy the views of the gentleman he who refines that of your own country is to have no from New York.

bounty ; how then can the latter meet the former in the Mr. CAMBRELENG adhered to the objections he had foreign market? I object to the principle of the bi!l, as it first suggested. The answer to the resolution could not be will be establishing a precedent fraught with evil consecomprised in less than an octavo volume If the honorable quences, and which, through the frauds and abuseg mover would yield his consent (not otherwise), he would which will be practised, may become a heavy charge again venture to move that the resolution lie for the pre- on the Treasury, and deeply injurious to the interior sent upon the table, with a view to its modification. manufacturer from raw material, the product of our own

Mr. RICHARDSON expressing assent, it was laid on country the table accordingly.

Mr. CAMBRELENG observed, in reply, that the obAdjourned to Monday.

ject of the present bill was merely to correct an error in previous legislation. The general provisions of law on

this subject were as old as the constitution, and the simple Monday, DECEMBER 15, 1828.

inquiry at present was, what ought to be the actual DRAWBACK ON REFINED SUGAR.

amount of debenture ? A report had been made at the

last session, by the Committee of Commerce, in relation The bill increasing the amount of drawback on sugar refined within the United States was next taken up, would give himself the trouble of consulting it, he would

to this point, and the gentleman from Pennsylvania when Mr. CAMBRELENG, to remove all doubts as to the there find that the Committee agree with him, that not a

cent should be allowed in form of drawback beyond the effect of the bill's being confined exclusively to sugars refined from foreign materials , read a paragraph from the that report, with three distinct calculations, drawn from

actual cost of the foreign sugar refined. He will meet, in former bills passed in 1816 and 1818; but lest any suspi- the most satisfactory data, and made with the greatest cion should remain, moved to amend the bill, by adding minuteness and care ; and if, after examining them, the thereto the following proviso:

gentleman should not be fully convinced, his apprehenProvided, That this act shall not alter or repeal any sions of that gentleman's candor and powers of comprelaw, now in force, regulating the exportation of sugar re hension would prove very erroneous. In fact, the rate fined in the United States, except to change the rate of proposed in the present bill, instead of being carried to drawback, when so exported."

an extreme, left a fraction in favor of the United States. Mr. STEVENSON, of Penn., said, this bill had, with. In granting such a drawback, the United States would not out opposition, progressed so far that he presumed resist- go as far as other commercial nations, nor would the preance would be unavailing. He deemed it proper, how- sent Congress go as far as their ancestors had done for ever, to say a few words explanatory of his vote against its twelve years after the organization of the Government. engrossment and passage. He was against the system of | The constant practice had been to fix the drawback at bounties, cloaked under the name of drawbacks. The double the rate of duty, because it required two pounds bill, in fact, proposes to give from the Treasury a bounty of foreign raw sugar to make one pound of American reon domestic refined sugars, when exported, of five cents fined ; whereas the present bill fixes the drawback at five per pound, under the pretext that the brown sugar of which cents, although the duty on each pound of imported sugar it is made pays three cents per pound duty on its importa- was three cents. As to the question of the general polition. The existing law allows a bounty or drawback of cy, when the time arrived in which that question would four cents per pound on sugar refined in the United States become one of great importance, Mr. C. said he should and exported, and this is equal to the whole duty paid on be ready to go with the gentleman from Pennsylvania so the raw sugar entering into its fabric-deducting a fair far as to enlarge our system of debenture. But to refuse

Dec. .5, 1828.]

Drawback on Refined Sugar.

(H. OF R.

the drawback would be to double the consumption duty foreign article, and that you will encourage such an emupon this article. It would be sending it, with a consump- ployment of it. tion duty exacted, by our own country, to meet another If sugar could be raised as cheaply at home as it can be comsumption duty, exacted in the foreign country whither imported, we should not go abroad for the article. The it was carried ; whereas the sugar refined abroad manufacture, then, would be of the domestic article, and loaded with only one such duty. Mr. C. concluded his not of the foreign, and every pound of our own sugar, remarks by observing, that the subject was not new, nor refined and exported, would get the drawback. The bill, had he advanced the views he had expressed as having the therefore, does not cramp and restrain, but, on the conleast claim to novelty. They had long been received and trary, tends directly to encourage the growth of sugar in acted upon, and the only question to be settled at this day the United States. The domestic grower would have the was, as he had before remarked, the actual amount of the price fixed by home consumption, and would get the drawback to be allowed.

drawback too. He would then have no rival ;. so that the Mr. STORRS, of New York, said that the effect of the argument.froin this bill goes rather the other way. The bill, as he apprehended, would be, by granting an addi- real danger is, that, sooner or later, such an invitation will tional drawback on refined sugar, made from that of fo be given to the manufacture, that the American article reign growth, to place it on the same footing with sugar will carry the drawback. The law, to be sure, attempts refined from that of domestic growth. There might for- to prevent this, by prescribing oaths, but that is not the merly have been a good reason for allowing this draw. true security. The security lies in the nature of the back, for at that time we possessed no sugar lands, and transaction : for it will be easy to tell whether the Governraised no sugar of domestic growth. But since then, the ment pays more for drawback than it gets for duty. If state of things had been greatly changed, and the United the drawback does not exceed the duty, then the law will States now raised, within its own limits, a large proportion have been faithfully observed. For, if there are an hunof the sugar actually used in the country. There was dred hogsheads of foreign sugar, and another hundred a difference between allowing drawback on the mere hogsheads of domestic, and if the two parcels are equally transit of articles which left the United States in the same cheap, what is it to the public which of these the refiner condition in which they entered, and allowing drawback chooses to use? If they are equally cheap, there is no on articles, the form of which was changed after their im- need to discriminate between them. The true test is, portation. Government ought to be cautious how it lets does the drawback exceed the duty ? If it does, then you articles of this description compete with similar articles of are paying a bounty for exportation. The same thing our own production. The general policy of this Govern- holds in respect to hemp. When you arrive at the ment had been not to allow drawback at all upon articles point where the drawback is equal to the duty, just as of this kind. Much difficulty had been experienced in much foreign sugar will be manufactured as is imported. the case of imported silks stamped here and re-exported. It will make no difference to the Treasury. The only The gentleman, surely, would not apply the doctrine of effect will be, that you have encouraged manufacdrawbacks to cotton goods manufactured in the United tures; but when the drawback exceeds the duty, then States and exported, if the cotton of which they were you must repeal your law, if you would not give a made were an imported article, or to woollens, if the bounty on exportation. Now the duty on imported suwool was imported. The provision appeared to him im- gar amounts to about two millions of dollars. Is there politic, if not unjust. Every body knew that the culture any danger of its being equalled by the drawback? The of sugar in the United States was rapidly increasing, and duty amounts to two millions, the drawback to five thouhe hoped and expected that it would still further increase, sand dollars, and owing to this excess of the duty over especially in the territory of Florida, and he thought it the drawback, the whole business of refining sugars better policy to encourage the production of our own su for a foreign market, which used to be so considerable, gar where it would grow, than to discourage it by allow- has ceased entirely. Instead of fearing to raise the drawing drawback upon foreign sugar imported into and re back to five cents, the Government would not go too far fined within the United States. The production of our if it fixed it at six. But, admitting the general positions, own sugar would much sooner reach the amount of con taken by the gentleman, to be true, there is another fact, sumption, if no such obstacle should be laid in its way; which completely sets aside their bearing on the case. and though he was not opposed to a drawback on transit, Domestic sugar is not fit for refining, and is never employyet he doubled greatly of the policy of allowing it upon ed for that purpose. What was the reason of this he would goods, the form of which was changed after their importa- not undertake to say, but the fact was incontrovertible. tion.

No sugar refiner ever made use of the domestic article. Mr. GORHAM said that the operation of the bill did on what principle could gentlemen maintain, if a system not appear to him to be rightly understood. What is it, of manufactures was to grow up in this country, that an asked Mr. G. which the bill on your table does in effect | American manufacturer must work upon no article that is say? It says only this: that if there is in this country any not of domestic growth. Why may he not bring in an skill and industry which may be usefully employed upon article from abroad and subject it here to his industry and a foreign material, you, the Government, will encourage skill? Why may he not increase its value, and then send such industry and skill. The gentleman from New York it to a foreign market? If he may, and if the Government appears to think that the effect of the bill will be to in- wish to encourage him in so doing, this bill presents the troduce a rival to the growth of our domestic sugar; but

If there were an insuperable difficulty in deso far was this from being the case, that the only difficulty tecting fraud under the bill, it might be a good reason which the Committee of Commerce apprehended, when against it. But, as I have already shown, there can be they introduced the bill, was, that its effect would be to The returns at the Treasury will detect it in six allow the drawback on our own sugar, which was intended months. only for sugar imported. Suppose ever so many mil Mr. McDUFFIE said, that, from the commencement of lions of pounds to be imported and re-exported—so the present discussion, he had entertained great doubt as far as our consumption at home was concerned, the draw to the policy of this measure, and although he did not conback would produce no competition between this sugar cur in all the views which had been urged against the bill, and our own, because the drawback is allowed only on the he had come to the conclusion that the bill ought not exportation. The theory of the act is this : that there is to pass. The allowance which it proposes to grant to the skill and capital in this country, which can be advantage manufacturers of refined sugar, is denominated, indeed, a ously employed in refining and improving the form of a drawback ; but a reference to the argument by which it has

means.

none.

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