ture, that had been suggested to congress in seventeen hundred and eighty-the exemption from taxation of wool cards, cotton cards, and the wire for making them; thus ** into any of the said states from any foreign port, island, or plantation, except arms, ammunition, clothing, and other articles imported on account of the United States, or any of them, and except wool cards, cotton cards, and wire for making them; and also, except the articles hereinafter enumerated, the duty on which shall be regulated according to the specified rates hereto annexed." Here the duties specified in the report were inserted. "Also a duty of five per cent. advalorem on all prizes and prize goods condemned in any court of admiralty of this state as lawful prize. A land tax, at the rate of ninetieths of a dollar for every one hundred acres of located and surveyed land. A house tax, at the general rate of half a dollar for each dwelling-house, (cottages excepted,) and at the additional rate of two and a half per cent. on whatever sum the rent of said house may exceed twenty dollars, to be calculated on the actual rent, when the house is rented; and when in the occupancy of the owner, on an appraised rent by commissioners under oath appointed by the state periodically. The lot and the appurtenances, in town, and in the country, the out-houses, garden, and orchard, to be comprehended with the dwelling-house. The duties on imports to pass to the general benefit of the United States without credit for the proceeds to any particular states; but the product of the land and house taxes to be credited to each state in which they shall arise. Said funds to continue till the principal of the debt due by the United States at the termination of the present war shall be finally discharged. "That an estimate be transmitted to each state of the amount of the public debt, as far as the same can be ascertained, and that congress will inviolably adhere to their resolutions of the 16th day of December last, respecting the appropriation of the funds which may be granted, and the annual transmission of the state of the public debt, and the proceeds and disposition of the said funds; by which all doubts and apprehensions respecting the perpetuity of the public debt may be effectually removed." These resolutions were not to take effect until acceded to by every state, * Madison Papers, v. 1, p. 300.-Madison states that "he suggested, as practicable objects of a general revenue-first, an impost on trade; secondly, a poll tax, under certain qualificaúcns; thirdly, a land tax, under ditto. Mr. Hamilton suggested a house and window tax." It has been seen, ante, vol. 1, p. 370, that Hamilton had proposed, in 1781, a land and poll tax, and that the superintendent of finance had also suggested the same taxes.-D. C. vol. 12, p. 226. That Hamilton suggested "a house and window tax," is an error. His list of "objects of taxation" mentions dwelling-houses, rated according to the number of rooms, with an addition for each room painted, or papered, or having a marble chimney-piece, or a stucco roof or rated according to the number of hearths-or to the number of windows exceeding three,-different measures of value. looking to the protection of domestic industry, of which, with such surprising sagacity, he foretold the advantages in his youthful essays. Having introduced these propositions, which he saw would result, if adopted, in an essential invigoration of the confederacy, he moved a postponement of the report of the committee, in order to bring forward his own views; but, though sustained by the votes of Connecticut, NewYork, New-Jersey, and Pennsylvania, he was defeated by those of Massachusetts, Rhode Island, Maryland, Virginia, and of both the Carolinas.* The discussion of the original report was resumed on the ensuing day, when a proposition was offered to complete that part for raising a revenue by imposts; but it was rejected, some of the members being unwilling to complete it without embracing the supplemental funds. A motion was then made to strike out the land valuation as the rule of contribution, which would necessarily be much deferred, and, as proposed to be made by the states, might be indefinitely postponed, and to substitute the population. The articles of confederation, as first reported, fixed as the measure of taxation the number of the inhabitants of the states, exclusive of Indians not taxed, which it was also proposed to establish as the measure of representation; a proposition sustained only by the vote of Virginia. The states in which slavery was not tolerated insisted that freemen alone ought to have a political voice; the slave when they were to form a mutual compact, irrevocable by any one state without the concurrence of the whole, or of a majority of the states in congress. * 4 J. C. 177.—The votes of Massachusetts, Virginia, and South Carolina, were not unanimous. Holten, of the first state, voted for Hamilton's motion; Gorham, Higginson, and Osgood, against it. Col. Bland, of Vir. ginia, was for it; Lee, Madison, and Mercer, against it. Carolina, was for it; Gervais and Izard, against it. Rutledge, of South holding states, that representation ought to be apportioned to taxation; that if slaves were computed in the enumeration of the inhabitants in apportioning the public burdens, they ought also to be counted in adjusting the scale of representatives. In this competition for power the eastern states prevailed, and the land valuation, objectionable as it was known to be, was adopted as the only alternative to escape this perplexing question. The difficulty of making such a valuation indicated a resort to some other expedient, and the idea was suggested of a compound vote of freemen and slaves as the basis of federal numbers. At first it was proposed that one-half of the number of slaves should be embraced; which being objected to by the south, twothirds were proposed; for which number New-Hampshire, Connecticut, New-York, New-Jersey, Pennsylvania, and Delaware, were in the affirmative, Rhode Island divided, and Maryland, Virginia, North and South Carolina, in the negative. The committee then agreed to report* as the ratio of contribution, that the whole number of free inhabitants, and three-fifths of all other inhabitants of every sex and condition, except Indians not paying taxes in each state, should be computed. This proposal failed. New-Hampshire, New-Jersey, Pennsylvania, Maryland, Virginia, and North Carolina, being in favour of it; Massachusetts, Rhode Island, Connecticut, Delaware, and South Carolina, opposed to it. Owing to Hamilton's absence, the vote of New-York was lost. On the first of April, he moved a reconsideration of this question, and offered an amendment, by which the apportionment of the expenses was to be in proportion to the whole number of white and other free inhabitants of every age, sex, and condition, including 4 J. C. 180.-March 28. those bound to servitude for a term of years, and three-fifths of all other persons not comprehended in the foregoing description, except Indians not paying taxes in each state; to be comprehended in a triennial census, and transmitted to congress. This motion prevailed by a vote of all the states, excepting Massachusetts and Rhode Island. Thus the important principle so long debated, as to the rule of contribution to all charges for the common defence and general welfare, was recommended as a part of the federal system. This great obstacle being at last removed, after considering a report of Hamilton for the reduction of the expenses of the war department, and also the measures which have been adverted to as to the execution of the treaty, congress proceeded steadfastly to the adjustment of a revenue system; the enumerated articles, except the duty on salt, being retained. On the eighteenth of April, the details having been completed, an amendment was proposed which recommended to the states that had not ceded their unappropriated lands to the United States, to make such cessions; and to those which had complied in part only with the resolutions of congress, "to revise and complete that compliance." This amendment was adopted, and the act being approved by the vote of all except four members, it was referred to Madison, Ellsworth, and Hamilton, to prepare an explanatory address. On the twenty-fifth the draft of a report was introduced, giving an estimate of the national debt,* accompanied with Hamilton's address to Rhode Island, with a computation of The foreign debt was computed to amount to $7,885,085 Total Annual interest at stipulated rates, 34,115,290 42,000,000 2,415,956 the yearly product of the impost, a view of the foreign loans, and with the papers relating to the discontents of the army. On the following day this report was agreed to. It apologized for the departure from "the strict maxims of national credit," which required that "the revenue ought manifestly to be coexistent with the object of it,” and the collection placed in every respect under that authority which was responsible for its application. It also stated the necessity of supplemental funds, and urged the importance of the proposed change in the mode of estimating the ratio of contribution by the states. The address closed with an exhortation to the states to fulfil their engagements, and reproved, in marked terms, the idea of a discrimination between the original holders of the debt and purchasers. It was from the pen of Madison. On the final question as to the revenue system, Hamilton, with Higginson and the members from Rhode Island, voted in the negative. He deemed it important to give an explanation to the state of New-York of his course on this subject, and of the reasons of his opposition. With this view he wrote the following letter. HAMILTON TO GOVERNOR CLINTON. Philadelphia, May 14, 1783. The president of congress will of course have transmitted to your excellency the plan lately adopted by congress for funding the public debt. This plan was framed to accommodate it to the objections of some of the states; but this spirit of accommodation will only serve to render it less efficient, without making it more palatable. The opposition of the state of Rhode Island, for instance, is chiefly founded upon these two considerations: the merchants are opposed to any revenue from trade; and the state, depend |