REDUCTION OF DUTIES.—MR. CLAY'S BILL.

On the 12th of February Mr. Clay asked leave to introduce a bill for the reduction of duties, styled by him a "compromise" measure; and prefaced the question with a speech, of which the following are parts:

"In presenting the modification of the tariff laws which I am now about to submit, I have two great objects in view. My first object looks to the tariff. I am compelled to express the opinion, formed after the most deliberate reflection, and on a full survey of the whole country, that, whether rightfully or wrongfully, the tariff stands in imminent danger. If it should even be preserved during this session, it must fall at the next session. By what circumstances, and through what causes, has arisen the necessity for this change in the policy of our country, I will not pretend now to elucidate. Others there are who may differ from the impressions which my mind has received upon this point. Owing, however, to a variety of concurrent causes, the tariff, as it now exists, is in imminent danger; and if the system can be preserved beyond the next session, it must be by some means not now within the reach of human sagacity. The fall of that policy, sir, would be productive of consequences calamitous indeed. When I look to the variety of interests which are involved, to the number of individuals interested, the amount of capital invested, the value of the buildings erected, and the whole arrangement of the business for the prosecution of the various branches of the manufacturing art which have sprung up under the fostering care of this government, I cannot contemplate any evil equal to the sudden overthrow of all those interests. History can produce no parallel to the extent of the mischief which would be produced by such a disaster. The repeal of the Edict of Nantes itself was nothing in comparison with it. That condemned to exile and brought to ruin a great number of persons. The most respectable portion of the population of France were condemned to exile and ruin by that measure. But in my opinion, sir, the sudden repeal of the tariff policy would bring ruin and destruction on the whole people of this country. There is no evil, in my opinion, equal to the consequences which would result from such a catastrophe.

"I believe the American system to be in the greatest danger; and I believe it can be placed on a better and safer foundation at this session than at the next. I heard, with surprise, my friend from Massachusetts say that nothing had occurred within the last six months to increase its hazard. I entreat him to review that opinion. Is it correct? Is the issue of numerous elections, including that of the highest officer of the government, nothing? Is the explicit recommendation of that officer, in his message at the opening of the session sustained, as he is, by a recent triumphant election, nothing? Is his declaration in his proclamation, that the burdens of the South ought to be relieved, nothing? Is the introduction of the bill in the House of Representatives during this session, sanctioned by the head of the treasury and the administration, prostrating the greater part of the manufactures of the country, nothing? Are the increasing discontents, nothing? Is the tendency of recent events to unite the whole South, nothing? What have we not witnessed in this chamber? Friends of the administration bursting all the ties which seemed indissolubly to unite them to its chief, and, with few exceptions south of the Potomac, opposing, and vehemently opposing, a favorite measure of that administration, which three short months ago they contributed to establish? Let us not deceive ourselves. Now is the time to adjust the question in a manner satisfactory to both parties. Put it off until the next session, and the alternative may, and probably then would be, a speedy and ruinous reduction of the tariff, or a civil war with the entire South.

"It is well known that the majority of the dominant party is adverse to the tariff. There are many honorable exceptions, the senator from New Jersey [Mr. Dickerson] among them. But for the exertions of the other party, the tariff would have been long since sacrificed. Now let us look at the composition of the two branches of Congress at the next session. In this body we lose three friends of the protective policy, without being sure of gaining one. Here, judging from the present appearances, we shall, at the next session, be in the minority. In the House it is notorious that there is a considerable accession to the number of the dominant party. How, then, I ask, is the system to be sustained against numbers, against the whole weight of the administration, against the united South, and against the increased impending danger of civil war?

"I have been represented as the father of the system, and I am charged with an unnatural abandonment of my own offspring. I have never arrogated to myself any such intimate relation to it. I have, indeed, cherished it with parental fondness, and my affection is undiminished. But in what condition do I find this child? It is in the hands of the Philistines, who would strangle it. I fly to its rescue, to snatch it from their custody, and to place it on a bed of security and repose for nine years, where it may grow and strengthen, and become acceptable to the whole people. I behold a torch about being applied to a favorite edifice, and I would save it, if possible, before it was wrapt in flames, or at least preserve the precious furniture which it contains."

Mr. Clay further advanced another reason for his bill, and which was a wish to separate the tariff from politics and elections—a wish which admitted their connection—and which, being afterwards interpreted by events, was supposed to be the basis of the coalition with Mr. Calhoun; both of them having tried the virtue of the tariff question in elections, and found it unavailing either to friends or foes. Mr. Clay, its champion, could not become President upon its support. Mr. Calhoun, its antagonist, could not become President upon its opposition. To both it was equally desirable, as an unavailable element in elections, and as a stumbling-block to both in future, that it should be withdrawn for some years from the political arena; and Mr. Clay thus expressed himself in relation to that withdrawal:

"I wish to see the tariff separated from the politics of the country, that business men may go to work in security, with some prospect of stability in our laws, and without every thing being staked on the issue of elections, as it were on the hazards of the die."

Mr. Clay then explained the principle of his bill, which was a series of annual reductions of one tenth per cent. on the value of all duties above twenty per cent. for eight successive years; and after that, the reduction of all the remainder above twenty per centum to that rate by two annual reductions of the excess: so as to complete the reduction to twenty per centum on the value of all imported goods on the 30th day of September, 1842; with a total abolition of duties on about one hundred articles after that time; and with a proviso in favor of the right of Congress, in the event of war with any foreign power to impose such duties as might be necessary to prosecute the war. And this was called a "compromise," although there was no stipulation for the permanency of the reduced, and of the abolished duties; and no such stipulation could be made to bind future Congresses; and the only equivalent which the South received from the party of protection, was the stipulated surrender of their principle in the clause which provided that after the said 30th of September, 1842, "duties should only be laid for raising such revenue as might be necessary for an economical administration of the government;" an attempt to bind future Congresses, the value of which was seen before the time was out. Mr. Clay proceeded to touch the tender parts of his plan—the number of years the protective policy had to run, and the guaranties for its abandonment at the end of the stipulated protection. On these points he said:

"Viewing it in this light, it appeared that there were eight years and a half, and nine years and a half, taking the ultimate time, which would be an efficient protection; the remaining duties would be withdrawn by a biennial reduction. The protective principle must be said to be, in some measure, relinquished at the end of eight years and a half. This period could not appear unreasonable, and he thought that no member of the Senate, or any portion of the country, ought to make the slightest objection. It now remained for him to consider the other objection—the want of a guaranty to there being an ulterior continuance of the duties imposed by the bill, on the expiration of the term which it prescribes. The best guaranties would be found in the circumstances under which the measure would be passed. If it were passed by common consent; if it were passed with the assent of a portion, a considerable portion, of those who had hitherto directly supported this system, and by a considerable portion of those who opposed it; if they declared their satisfaction with the measure, he had no doubt the rate of duties guarantied would be continued after the expiration of the term, if the country continued at peace."

Here was a stipulation to continue the protective principle for nine years and a half, and the bill contained no stipulation to abandon it at that time, and consequently no guaranty that it would be abandoned; and certainly the guaranty would have been void if stipulated, as it is not in the power of one Congress to abridge by law the constitutional power of its successors. Mr. Clay, therefore, had recourse to moral guaranties; and found them good, and best in the circumstances in which the bill would be passed, and the common consent with which it was expected to be done—a calculation which found its value, as to the "common consent," before the bill was passed, as to its binding force before the time fixed for its efficacy to begin.

Mr. Forsyth, of Georgia, replied to Mr. Clay, and said:

"The avowed object of the bill would meet with universal approbation. It was a project to harmonize the people, and it could have come from no better source than from the gentleman from Kentucky: for to no one were we more indebted than to him for the discord and discontent which agitate us. But a few months ago it was in the power of the gentleman, and those with whom he acted, to settle this question at once and for ever. The opportunity was not seized, but he hoped it was not passed. In the project now offered, he could not see the elements of success. The time was not auspicious. But fourteen days remained to the session; and we had better wait the action of the House on the bill before them, than by taking up this new measure here, produce a cessation of their action. Was there not danger that the fourteen days would be exhausted in useless debate? Why, twenty men, with a sufficiency of breath (for words they would not want), could annihilate the bill, though a majority in both Houses were in favor of it. He objected, too, that the bill was a violation of the constitution, because the Senate had no power to raise revenue. Two years ago, the same senator made a proposition, which was rejected on this very ground. The offer, however, would not be useless; it would be attended with all the advantages which could follow its discussion here. We shall see it, and take it into consideration as the offer of the manufacturers. The other party, as we are called, will view it as a scheme of diplomacy; not as their ultimatum, but as their first offer. But the bargain was all on one side. After they are defeated, and can no longer sustain a conflict, they come to make the best bargain they can. The senator from Kentucky says, the tariff is in danger; aye, sir, it is at its last gasp. It has received the immedicable wound; no hellebore can cure it. He considered the confession of the gentleman to be of immense importance. Yes, sir, the whole feeling of the country is opposed to the high protective system. The wily serpent that crept into our Eden has been touched by the spear of Ithuriel. The senator is anxious to prevent the ruin which a sudden abolition of the system will produce. No one desires to inflict ruin upon the manufacturers; but suppose the Southern people, having the power to control the subject, should totally and suddenly abolish the system; what right would those have to complain who had combined to oppress the South? What has the tariff led us to already? From one end of the country to the other, it has produced evils which are worse than a thousand tariffs. The necessity of appealing now to fraternal feeling shows that that feeling is not sleeping, but nearly extinguished. He opposed the introduction of the bill as a revenue measure, and upon it demanded the yeas and nays: which were ordered."

The practical, clear-headed, straightforward Gen. Smith, of Maryland, put his finger at once upon the fallacy and insecurity of the whole scheme, and used a word, the point and application of which was more visible afterwards than at the time it was uttered. He said:

"That the bill was no cure at all for the evils complained of by the South. They wished to try the constitutionality of protecting duties. In this bill there was nothing but protection, from beginning to end. We had been told that if the bill passed with common consent, the system established by it would not be touched. But he had once been cheated in that way, and would not be cheated again. In 1816 it was said the manufacturers would be satisfied with the protection afforded by the bill of that year; but in a few years after they came and insisted for more, and got more. After the first four years, an attempt would be made to repeal all the balance of this bill. He would go no further than four years in prospective reduction. The reduction was on some articles too great."

He spoke history, except in the time. The manufacturers retained the benefits of the bill to the end of the protection which it gave them, and then re-established the protective system in more amplitude than ever.

"Mr. Calhoun rose and said, he would make but one or two observations. Entirely approving of the object for which this bill was introduced, he should give his vote in favor of the motion for leave to introduce it. He who loved the Union must desire to see this agitating question brought to a termination. Until it should be terminated, we could not expect the restoration of peace or harmony, or a sound condition of things, throughout the country. He believed that to the unhappy divisions which had kept the Northern and Southern States apart from each other, the present entirely degraded condition of the country (for entirely degraded he believed it to be) was solely attributable. The general principles of this bill received his approbation. He believed that if the present difficulties were to be adjusted, they must be adjusted on the principles embraced in the bill, of fixing ad valorem duties, except in the few cases in the bill to which specific duties were assigned. He said that it had been his fate to occupy a position as hostile as any one could, in reference to the protecting policy; but, if it depended on his will, he would not give his vote for the prostration of the manufacturing interest. A very large capital had been invested in manufactures, which had been of great service to the country; and he would never give his vote to suddenly withdraw all those duties by which that capital was sustained in the channel into which it had been directed. But he would only vote for the ad valorem system of duties, which he deemed the most beneficial and the most equitable. At this time, he did not rise to go into a consideration of any of the details of this bill, as such a course would be premature, and contrary to the practice of the Senate. There were some of the provisions which had his entire approbation, and there were some to which he objected. But he looked upon these minor points of difference as points in the settlement of which no difficulty would occur, when gentlemen meet together in that spirit of mutual compromise which, he doubted not, would be brought into their deliberations, without at all yielding the constitutional question as to the right of protection."

This union of Mr. Calhoun and Mr. Clay in the belief of the harmony and brotherly affection which this bill would produce, professing as it did, and bearing on its face the termination of the American system, afforded a strong instance of the fallibility of political opinions. It was only six months before that the dissolution of the Union would be the effect, in the opinion of one of them, of the continuance of the American system—and of its abandonment in the opinion of the other. Now, both agreed that the bill which professed to destroy it would restore peace and harmony to a distracted country. How far Mr. Clay then saw the preservation, and not the destruction, of the American system in the compromise he was making, may be judged by what he said two weeks later, when he declared that he looked forward to a re-action which would restore the protective system at the end of the time.

The first news of Mr. Clay's bill was heard with dismay by the manufacturers. Niles' Register, the most authentic organ and devoted advocate of that class, heralded it thus: "Mr. Clay's new tariff project will be received like a crash of thunder in the winter season, and some will hardly trust the evidence of their senses on a first examination of it—so radical and sudden is the change of policy proposed because of a combination of circumstances which, in the judgment of Mr. Clay, has rendered such a change necessary. It may be that our favorite systems are all to be destroyed. If so the majority determine—so be it." The manufacturers flocked in crowds to Washington City—leaving home to stop the bill—arriving at Washington to promote it. Those practical men soon saw that they had gained a reprieve of nine years and a half in the benefits of protection, with a certainty of the re-establishment of the system at the end of that time, from the revulsion which would be made in the revenue—in the abrupt plunge at the end of that time in the scale of duties from a high rate to an ad valorem of twenty per centum; and that leaving one hundred articles free. This nine years and a half reprieve, with the certain chance for the revulsion, they found to be a good escape from the possible passage of Mr. Verplank's bill, or its equivalent, at that session; and its certain passage, if it failed then, at the ensuing session of the new Congress. They found the protective system dead without this reprieve, and now received as a deliverance what had been viewed as a sentence of execution; and having helped the bill through, they went home rejoicing, and more devoted to Mr. Clay than ever.

Mr. Webster had not been consulted, in the formation of this bill, and was strongly opposed to it, as well as naturally dissatisfied at the neglect with which he had been treated. As the ablest champion of the tariff, and the representative of the chief seat of manufactures, he would naturally have been consulted, and made a party, and a leading one, in any scheme of tariff adjustment; on the contrary, the whole concoction of the bill between Mr. Clay and Mr. Calhoun had been entirely concealed from him. Symptoms of discontent appeared, at times, in their speeches; and, on the night of the 23d, some sharp words passed—composed the next day by their friends: but it was a strange idea of a "compromise," from which the main party was to be excluded in its formation, and bound in its conclusion. And Mr. Webster took an immediate opportunity to show that he had not been consulted, and would not be bound by the arrangement that had been made. He said:

"It is impossible that this proposition of the honorable member from Kentucky should not excite in the country a very strong sensation; and, in the relation in which I stand to the subject, I am anxious at an early moment, to say, that, as far as I understand the bill, from the gentleman's statement of it, there are principles in it to which I do not at present see how I can ever concur. If I understand the plan, the result of it will be a well-understood surrender of the power of discrimination, or a stipulation not to use that power, in the laying duties on imports, after the eight or nine years have expired. This appears to me to be matter of great moment. I hesitate to be a party to any such stipulation. The honorable member admits, that though there will be no positive surrender of the power, there will be a stipulation not to exercise it; a treaty of peace and amity, as he says, which no American statesman can, hereafter, stand up to violate. For one, sir, I am not ready to enter into the treaty. I propose, so far as depends on me, to leave all our successors in Congress as free to act as we are ourselves.

"The honorable member from Kentucky says the tariff is in imminent danger; that, if not destroyed this session, it cannot hope to survive the next. This may be so, sir. This may be so. But, if it be so, it is because the American people will not sanction the tariff; and, if they will not, why, then, sir, it cannot be sustained at all. I am not quite so despairing as the honorable member seems to be. I know nothing which has happened, within the last six or eight months, changing so materially the prospects of the tariff. I do not despair of the success of an appeal to the American people, to take a just care of their own interest, and not to sacrifice those vast interests which have grown up under the laws of Congress."

There was a significant intimation in these few remarks, that Mr. Webster had not been consulted in the preparation of this bill. He shows that he had no knowledge of it, except from Mr. Clay's statement of its contents, on the floor, for it had not then been read; and the statement made by Mr. Clay was his only means of understanding it. This is the only public intimation which he gave of that exclusion of himself from all knowledge of what Mr. Clay and Mr. Calhoun were doing; but, on the Sunday after the sharp words between him and Mr. Clay, the fact was fully communicated to me, by a mutual friend, and as an injurious exclusion which Mr. Webster naturally and sensibly felt. On the next day, he delivered his opinions of the bill, in an unusually formal manner—in a set of resolutions, instead of a speech—thus:

"Resolved, That the annual revenues of the country ought not to be allowed to exceed a just estimate of the wants of the government; and that, as soon as it shall be ascertained, with reasonable certainty, that the rates of duties on imports, as established by the act of July, 1832, will yield an excess over those wants, provision ought to be made for their reduction; and that, in making this reduction, just regard should be had to the various interests and opinions of different parts of the country, so as most effectually to preserve the integrity and harmony of the Union, and to provide for the common defence, and promote the general welfare of the whole.

"But, whereas it is certain that the diminution of the rates of duties on some articles would increase, instead of reducing, the aggregate amount of revenue on such articles; and whereas, in regard to such articles as it has been the policy of the country to protect, a slight reduction on one might produce essential injury, and even distress, to large classes of the community, while another might bear a larger reduction without any such consequences; and whereas, also, there are many articles, the duties on which might be reduced, or altogether abolished, without producing any other effect than the reduction of revenue: Therefore,

"Resolved, That, in reducing the rates of duties imposed on imports, by the act of the 14th of July aforesaid, it is not wise or judicious to proceed by way of an equal reduction per centum on all articles; but that, as well the amount as the time of reduction ought to be fixed, in respect to the several articles, distinctly, having due regard, in each case, to the questions whether the proposed reduction will affect revenue alone, or how far it will operate injuriously on those domestic manufactures hitherto protected; especially such as are essential in time of war, and such, also, as have been established on the faith of existing laws; and, above all, how far such proposed reduction will affect the rates of wages and the earnings of American manual labor.

"Resolved, That it is unwise and injudicious, in regulating imposts, to adopt a plan, hitherto equally unknown in the history of this government, and in the practice of all enlightened nations, which shall, either immediately or prospectively, reject all discrimination on articles to be taxed, whether they be articles of necessity or of luxury, of general consumption or of limited consumption; and whether they be or be not such as are manufactured and produced at home, and which shall confine all duties to one equal rate per centum on all articles.

"Resolved, That, since the people of the United States have deprived the State governments of all power of fostering manufactures, however indispensable in peace or in war, or however important to national independence, by commercial regulations, or by laying duties on imports, and have transferred the whole authority to make such regulations, and to lay such duties, to the Congress of the United States, Congress cannot surrender or abandon such power, compatibly with its constitutional duty; and, therefore,

"Resolved, That no law ought to be passed on the subject of imposts, containing any stipulation, express or implied, or giving any pledge or assurance, direct or indirect, which shall tend to restrain Congress from the full exercise, at all times hereafter, of all its constitutional powers, in giving reasonable protection to American industry, countervailing the policy of foreign nations, and maintaining the substantial independence of the United States."

These resolutions brought the sentiments of Mr. Webster, on the tariff and federal revenue, very nearly to the standard recommended by General Jackson, in his annual message; which was a limitation of the revenue to the wants of the government, with incidental protection to essential articles; and this approximation of policy, with that which had already taken place on the doctrine of nullification and its measures, and his present support of the "Force Bill," may have occasioned the exclusion of Mr. Webster from all knowledge of this "compromise." Certain it is, that, with these sentiments on the subject of the tariff and the revenue, and with the decision of the people, in their late elections against the American system, that Mr. Webster and his friends would have acted with the friends of General Jackson and the democratic party, in the ensuing Congress, in reducing the duties in a way to be satisfactory to every reasonable interest; and, above all, to be stable; and to free the country from the agitation of the tariff question, the manufacturers from uncertainty, and the revenue from fluctuations which alternately gave overflowing and empty treasuries. It was a consummation devoutly to be wished; and frustrated by the intervention of the delusive "compromise," concocted out of doors, and in conclave by two senators; and to be carried through Congress by their joint adherents, and by the fears of some and the interests of others.

Mr. Wright, of New-York, saw objections to the bill, which would be insurmountable in other circumstances. He proceeded to state these objections, and the reason which would outweigh them in his mind:

"He thought the reduction too slow for the first eight years, and vastly too rapid afterwards. Again, he objected to the inequality of the rule of reduction which had been adopted. It will be seen, at once, that on articles paying one hundred per cent. duty, the reduction is dangerously rapid. There was uniformity in the rule adopted by the bill, as regards its operation on existing laws. The first object of the bill was to effect a compromise between the conflicting views of the friends and the opponents of protection. It purports to extend relief to Southern interest; and yet it enhances the duty on one of the most material articles of Southern consumption—negro cloths. Again, while it increases this duty, it imposes no corresponding duty on the raw material from which the fabric is made.

"Another objection arose from his mature conviction that the principle of home valuation was absurd, impracticable, and of very unequal operation. The reduction on some articles of prime necessity—iron, for example—was so great and so rapid, that he was perfectly satisfied that it would stop all further production before the expiration of eight years. The principle of discrimination was one of the points introduced into the discussion; and, as to this, he would say that the bill did not recognize, after a limited period, the power of Congress to afford protection by discriminating duties. It provides protection for a certain length of time, but does not ultimately recognize the principle of protection. The bill proposes ultimately to reduce all articles which pay duty to the same rate of duty. This principle of revenue was entirely unknown to our laws, and, in his opinion, was an unwarrantable innovation. Gentlemen advocating the principle and policy of free trade admit the power of Congress to lay and collect such duties as are necessary for the purpose of revenue; and to that extent they will incidentally afford protection to manufactures. He would, upon all occasions, contend that no more money should be raised from duties on imports than the government needs; and this principle he wished now to state in plain terms. He adverted to the proceedings of the Free Trade Convention to show that, by a large majority, (120 to 7,) they recognized the constitutional power of Congress to afford incidental protection to domestic manufactures. They expressly agreed that the principle of discrimination was in consonance with the constitution.

"Still another objection he had to the bill. It proposed on its face, and, as he thought, directly, to restrict the action of our successors. We had no power, he contended, to bind our successors. We might legislate prospectively, and a future Congress could stop the course of this prospective legislation. He had, however, no alternative but to vote for the bill, with all its defects, because it contained some provisions which the state of the country rendered indispensably necessary."

He then stated the reason which would induce him to vote for the bill notwithstanding these objections. It was found in the attitude of South Carolina, and in the extreme desire which he had to remove all cause of discontent in that State, and to enable her to return to the state of feeling which belonged to an affectionate member of the Union. For that reason he would do what was satisfactory to her, though not agreeable to himself.

While the bill was still depending before the Senate, the bill itself for which the leave was being asked, made its appearance at the door of the chamber, with a right to enter it, in the shape of an act passed by the House, and sent to the Senate for concurrence. This was a new feature in the game, and occasioned the Senate bill to be immediately dropped, and the House bill put in its place; and which, being quickly put to the vote, was passed, 29 to 16.

"Yeas.—Messrs. Bell, Bibb, Black, Calhoun, Chambers, Clay, Clayton, Ewing, Foot, Forsyth, Frelinghuysen, Grundy, Hill, Holmes, Johnston, King, Mangum, Miller, Moore, Maudain, Poindexter, Rives, Robinson, Sprague, Tomlinson, Tyler, Waggaman, White, Wright.

"Nays.—Messrs. Benton, Buckner, Dallas, Dickerson, Dudley, Hendricks, Knight, Prentiss, Robbins, Ruggles, Seymour, Silsbee, Smith, Tipton, Webster, Wilkins."

And the bill was then called a "compromise," which the dictionaries define to be an "agreement without the intervention of arbitrators;" and so called, it was immediately proclaimed to be sacred and inviolable, as founded on mutual consent, although the only share which the manufacturing States (Pennsylvania, New Jersey, Maryland, Massachusetts, Rhode Island, Vermont) had in making this "compromise," was to see it sprung upon them without notice, executed upon them as a surprise, and forced upon them by anti-tariff votes, against the strenuous resistance of their senators and representatives in both Houses of Congress.

An incident which attended the discussion of this bill shows the manner in which great measures—especially a bill of many particulars, like the tariff, which affords an opportunity of gratifying small interests—may be worked through a legislative body, even the Senate of the United States, by other reasons than those derived from its merits. The case was this: There were a few small manufactories in Connecticut and some other New England States, of a coarse cloth called, not Kendall green, but Kendall cotton—quite antithetically, as the article was made wholly of wool—of which much was also imported. As it was an article exclusively for the laboring population, the tariff of the preceding session made it virtually free, imposing only a duty of five per centum on the value of the cloth and the same on the wool of which it was made. Now this article was put up in this "compromise" bill which was to reduce duties, to fifty per centum, aggravated by an arbitrary minimum valuation, and by the legerdemain of retaining the five per centum duty on the foreign wool which they used, and which was equivalent to making it free, and reduced to that low rate to harmonize the duty on the raw material and the cloth. General Smith, of Maryland, moved to strike out this duty, so flagrantly in contrast to the professed objects of the bill, and in fraud of the wool duty; and that motion brought out the reason why it was put there—which was, that it was necessary to secure the passage of the bill. Mr. Foot, of Connecticut, said: "This was an important feature of the bill, in which his constituents had a great interest. Gentlemen from the South had agreed to it; and they were competent to guard their own interest." Mr. Clay said: "The provision proposed to be stricken out was an essential part of the compromise, which, if struck out, would destroy the whole." Mr. Bell of New Hampshire, said: "The passage of the bill depended upon it. If struck out, he should feel himself compelled to vote against the bill." So it was admitted by those who knew what they said, that this item had been put into the bill while in a state of concoction out of doors, and as a douceur to conciliate the votes which were to pass it. Thereupon Mr. Benton stood up, and

"Animadverted on the reason which was alleged for this extraordinary augmentation of duties in a bill which was to reduce duties. The reason was candidly expressed on this floor. There were a few small manufactories of these woollens in Connecticut; and unless these manufactories be protected by an increase of duties, certain members avow their determination to vote against the whole bill! This is the secret—no! not a secret, for it is proclaimed. It was a secret, but is not now. Two or three little factories in Connecticut must be protected; and that by imposing an annual tax upon the wearers of these coarse woollens of four or five times the value of the fee-simple estate of the factories. Better far, as a point of economy and justice, to purchase them and burn them. The whole American system is to be given up in the year 1842; and why impose an annual tax of near five hundred thousand dollars, upon the laboring community, to prolong, for a few years, a few small branches of that system, when the whole bill has the axe to the root, and nods to its fall? But, said Mr. B., these manufactories of coarse woollens, to be protected by this bill, are not even American; they are rather Asiatic establishments in America; for they get their wool from Asia, and not from America. The importation of this wool is one million two hundred and fifty thousand pounds weight; it comes chiefly from Smyrna, and costs less than eight cents a pound. It was made free of duty at the last session of Congress, as an equivalent to these very manufactories for the reduction of the duty on coarse woollens to five per cent. The two measures went together, and were, each, a consideration for the other. Before that time, and by the act of 1828, this coarse wool was heavily dutied for the benefit of the home wool growers. It was subjected to a double duty, one of four cents on the pound, and the other of fifty per cent. on the value. As a measure of compromise, this double duty was abolished at the last session. The wool for these factories was admitted duty free, and, as an equivalent to the community, the woollens made out of the corresponding kind of wool were admitted at a nominal duty. It was a bargain, entered into in open Congress, and sealed with all the forms of law. Now, in six months after the bargain was made, it is to be broken. The manufacturers are to have the duty on woollens run up to fifty per cent. for protection, and are still to receive the foreign wool free of duty. In plain English, they are to retain the pay which was given them for reducing the duties on these coarse woollens, and they are to have the duties restored.

"He said it was contrary to the whole tenor and policy of the bill, and presented the strange contradiction of multiplying duties tenfold, upon an article of prime necessity, used exclusively by the laboring part of the community, while reducing duties or abolishing them in toto, upon every article used by the rich and luxurious. Silks were to be free; cambrics and fine linens were to be free; muslins, and casimeres, and broad cloths were to be reduced; but the coarse woollens, worn by the laborers of every color and every occupation, of every sex and of every age, bond or free—these coarse woollens, necessary to shelter the exposed laborer from cold and damp, are to be put up tenfold in point of tax, and the cost of procuring them doubled to the wearer.

"The American value, and not the foreign cost, will be the basis of computation for the twenty per cent. The difference, when all is fair, is about thirty-five per cent. in the value; so that an importation of coarse woollens, costing one million in Europe, and now to pay five per cent. on that cost, will be valued, if all is fair, at one million three hundred and fifty thousand dollars; and the twenty per cent. will be calculated on that sum, and will give two hundred and seventy thousand dollars, instead of two hundred thousand dollars, for the quantum of the tax. It will be near sixfold, instead of four-fold, and that if all is fair; but if there are gross errors or gross frauds in the valuation, as every human being knows there must be, the real tax may be far above sixfold. On this very floor, and in this very debate, we hear it computed, by way of recommending this bill to the manufacturers, that the twenty per cent. on the statute book will exceed thirty in the custom-house.

"Mr. B. took a view of the circumstances which had attended the duties on these coarse woollens since he had been in Congress. Every act had discriminated in favor of these goods, because they were used by the poor and the laborer. The act of 1824 fixed the duties upon them at a rate one third less than on other woollens; the act of 1828 fixed it at upwards of one half less; the act of 1832 fixed it nine tenths less. All these discriminations in favor of coarse woollens were made upon the avowed principle of favoring the laborers, bond and free,—the slave which works the field for his master, the mariner, the miner, the steamboat hand, the worker in stone and wood, and every out-door occupation. It was intended by the framers of all these acts, and especially by the supporters of the act of 1832, that this class of our population, so meritorious from their daily labor, so much overlooked in the operations of the government, because of their little weight in the political scale, should at least receive one boon from Congress—they should receive their working clothes free of tax. This was the intention of successive Congresses; it was the performance of this Congress in its act of the last session; and now, in six short months since this boon was granted, before the act had gone into effect, the very week before the act was to go into effect, the boon so lately granted, is to be snatched away, and the day laborer taxed higher than ever; taxed fifty per cent. upon his working clothes! while gentlemen and ladies are to have silks and cambrics, and fine linen, free of any tax at all!

"In allusion to the alleged competency of the South to guard its own interest, as averred by Mr. Foot, Mr. Benton said that was a species of ability not confined to the South, but existent also in the North—whether indigenous or exotic he could not say—but certainly existent there, at least in some of the small States; and active when duties were to be raised on Kendal cotton cloth, and the wool of which it was made to remain free."

The motion of General Smith was rejected, of course, and by the same vote which passed the bill, no one of those giving way an inch of ground in the House who had promised out of doors to stand by the bill. Another incident to which the discussion of this bill gave rise, and the memory of which is necessary to the understanding of the times, was the character of "protection" which Mr. Clay openly claimed for it; and the peremptory manner in which he and his friends vindicated that claim in open Senate, and to the face of Mr. Calhoun. The circumstances were these: Mr. Forsyth objected to the leave asked by Mr. Clay to introduce his bill, because it was a revenue bill, the origination of which under the constitution exclusively belonged to the House of Representatives, the immediate representative of the people. And this gave rise to an episodical debate, in which Mr. Clay said: "The main object of the bill is not revenue, but protection."—In answer to several senators who said the bill was an abandonment of the protective principle, Mr. Clay said: "The language of the bill authorized no such construction, and that no one would be justified in inferring that there was to be an abandonment of the system of protection."—And Mr. Clayton, of Delaware, a supporter of the bill, said: "The government cannot be kept together if the principle of protection were to be discarded in our policy; and declared that he would pause before he surrendered that principle, even to save the Union."—Mr. Webster said: "The bill is brought forward by the distinguished senator from Kentucky, who professes to have renounced none of his former opinions as to the constitutionality and expediency of protection."—And Mr. Clay said further: "The bill assumes, as a basis, adequate protection for nine years, and less (protection) beyond that term. The friends of protection say to their opponents, we are willing to take a lease of nine years, with the long chapter of accidents beyond that period, including the chance of war, the restoration of concord, and along with it a conviction common to all, of the utility of protection; and in consideration of it, if, in 1842 none of these contingencies shall have been realized, we are willing to submit, as long as Congress may think proper, with a maximum of twenty per centum," &c.—"He avowed his object in framing the bill was to secure that protection to manufactures which every one foresaw must otherwise soon be swept away." So that the bill was declared to be one of protection (and upon sufficient data), upon a lease of nine years and a half, with many chances for converting the lease into a fee simple at the end of its run; which, in fact, was done; but with such excess of protection as to produce a revulsion, and another tariff catastrophe in 1846. The continuance of protection was claimed in argument by Mr. Clay and his friends throughout the discussion, but here it was made a point on which the fate of the bill depended, and on which enough of its friends to defeat it declared they would not support it except as a protective measure. Mr. Calhoun in other parts of the debate had declared the bill to be an abandonment of protection; but at this critical point, when such a denial from him would have been the instant death warrant of the bill, he said nothing. His desire for its passage must have been overpowering when he could hear such declarations without repeating his denial.

On the main point, that of the constitutionality of originating the bill in the Senate, Mr. Webster spoke the law of Parliament when he said:

"It was purely a question of privilege, and the decision of it belonged alone to the other House. The Senate, by the constitution, could not originate bills for raising revenue. It was of no consequence whether the rate of duty were increased or decreased; if it was a money bill it belonged to the House to originate it. In the House there was a Committee of Ways and Means organized expressly for such objects. There was no such committee in the Senate. The constitutional provision was taken from the practice of the British Parliament, whose usages were well known to the framers of the constitution, with the modification that the Senate might alter and amend money bills, which was denied by the House of Commons to the Lords. This subject belongs exclusively to the House of Representatives. The attempt to evade the question, by contending that the present bill was intended for protection and not for revenue, afforded no relief, for it was protection by means of revenue. It was not the less a money bill from its object being protection. After 1842 this bill would raise the revenue, or it would not be raised by existing laws. He was altogether opposed to the provisions of this bill; but this objection was one which belonged to the House of Representatives."

Another incident which illustrates the vice and tyranny of this outside concoction of measures between chiefs, to be supported in the House by their adherents as they fix it, occurred in the progress of this bill. Mr. Benton, perceiving that there was no corresponding reduction of drawback provided for on the exportation of the manufactured article made out of an imported material on which duty was to be reduced, and supposing it to have been an oversight in the framing of the bill, moved an amendment to that effect; and meeting resistance, stood up, and said:

"His motion did not extend to the general system of drawbacks, but only to those special cases in which the exporter was authorized to draw from the treasury the amount of money which he had paid into it on the importation of the materials which he had manufactured. The amount of drawback to be allowed in every case had been adjusted to the amount of duty paid, and as all these duties were to be periodically reduced by the bill, it would follow, as a regular consequence, that the drawback should undergo equal reductions at the same time. Mr. B. would illustrate his motion by stating a single case—the case of refined sugar. The drawback payable on this sugar was five cents a pound. These five cents rested upon a duty of three cents, now payable on the importation of foreign brown sugar. It was ascertained that it required nearly two pounds of brown sugar to make a pound of refined sugar, and five cents was held to be the amount of duty paid on the quantity of brown sugar which made the pound of refined sugar. It was simply a reimbursement of what he had paid. By this bill the duty of foreign brown sugar will be reduced immediately to two and a half cents a pound, and afterwards will be periodically reduced until the year 1842, when it will be but six-tenths of a cent, very little more than one-sixth of the duty when five cents the pound were allowed for a drawback. Now, if the drawback is not reduced in proportion to the reduction of the duty on the raw sugar, two very injurious consequences will result to the public: first, that a large sum of money will be annually taken out of the treasury in gratuitous bounties to sugar refiners; and next, that the consumers of refined sugar will have to pay more for American refined sugar than foreigners will; for the refiners getting a bounty of five cents a pound on all that is exported, will export all, unless the American consumer will pay the bounty also. Mr. B. could not undertake to say how much money would be drawn from the treasury, as a mere bounty, if this amendment did not prevail. It must, however, be great. The drawback was now frequently a hundred thousand dollars a year, and great frauds were committed to obtain it. Frauds to the amount of forty thousand dollars a year had been detected, and this while the inducement was small and inconsiderable; but, as fast as that inducement swells from year to year, the temptation to commit frauds must increase; and the amount drawn by fraud, added to that drawn by the letter of the law, must be enormous. Mr. B. did not think it necessary to illustrate his motion by further examples, but said there were other cases which would be as strong as that of refined sugar; and justice to the public required all to be checked at once, by adopting the amendment he had offered."

This amendment was lost, although its necessity was self-evident, and supported by Mr. Calhoun's vote; but Mr. Clay was inexorable, and would allow of no amendment which was not offered by friends of the bill: a qualification which usually attends all this class of outside legislation. In the end, I saw the amendment adopted, as it regarded refined sugars, after it began to take hundreds of thousands per annum from the treasury, and was hastening on to millions per annum. The vote on its rejection in the compromise bill, was:

"Yeas.—Messrs. Benton, Buckner, Calhoun, Dallas, Dickerson, Dudley, Forsyth, Johnson, Kane, King, Rives, Robinson, Seymour, Tomlinson, Webster, White, Wilkins, Wright—18.

"Nays.—Messrs. Bell, Bibb, Black, Clay, Clayton, Ewing, Foot, Grundy, Hendricks, Holmes, Knight, Mangum, Miller, Moore, Naudain, Poindexter, Prentiss, Robbins, Silsbee, Smith, Sprague, Tipton, Troup, Tyler.—24."

But the protective feature of the bill, which sat hardest upon the Southern members, and, at one time, seemed to put an end to the "compromise," was a proposition, by Mr. Clay, to substitute home valuations for foreign on imported goods; and on which home valuation, the duty was to be computed. This was no part of the bill concocted by Mr. Clay and Mr. Calhoun; and, when offered, evidently took the latter gentleman by surprise, who pronounced it unconstitutional, unequal, and unjust; averred the objections to the proposition to be insurmountable; and declared that, if adopted, would compel him to vote against the whole bill. On the other hand, Mr. Clayton and others, declared the adoption of the amendment to be indispensable; and boldly made known their determination to sacrifice the bill, if it was not adopted. A brief and sharp debate took place, in the course of which Mr. Calhoun declared his opinions to remain unaltered, and Mr. Clayton moved to lay the bill upon the table. Its fate seemed, at that time, to be sealed; and certainly would have been, if the vote on its passage had then been taken; but an adjournment was moved, and carried; and, on the next day, and after further debate, and the question on Mr. Clay's proposition about to be taken, Mr. Calhoun declared that it had become necessary for him to determine whether he would vote for or against it; said he would vote for it, otherwise the bill would be lost. He then called upon the reporters in the gallery to notice well what he said, as he intended his declaration to be part of the proceedings: and that he voted upon the conditions: first, that no valuation should be adopted, which would make the duties unequal in different parts; and secondly, that the duties themselves should not become an element in the valuation. The practical sense of General Smith immediately exposed the futility of these conditions, which were looked upon, on all sides, as a mere salvo for an inevitable vote, extorted from him by the exigencies of his position; and several senators reminded him that his intentions and motives could have no effect upon the law, which would be executed according to its own words. The following is the debate on this point, very curious in itself, even in the outside view it gives of the manner of affecting great national legislation; and much more so in the inside view of the manner of passing this particular measure, so lauded in its day; and to understand which, the outside view must first be seen. It appears thus, in the prepared debates:

"Mr. Clay now rose to propose the amendment, of which he had previously given notice. The object was, that, after the period prescribed by the bill, all duties should thereafter be assessed on a valuation made at the port in which the goods are first imported, and under 'such regulations as may be prescribed by law.' Mr. C. said it would be seen, by this amendment, that, in place of having a foreign valuation, it was intended to have a home one. It was believed by the friends of the protective system, that such a regulation was necessary. It was believed by many of the friends of the system, that, after the period of nine and a half years, the most of our manufactures will be sufficiently grown to be able to support themselves under a duty of twenty per cent., if properly laid; but that, under a system of foreign valuation, such would not be the case. They say that it would be more detrimental to their interests than the lowest scale of duties that could be imposed; and you propose to fix a standard of duties. They are willing to take you at your word, provided you regulate this in a way to do them justice.

"Mr. Smith opposed the amendment, on the ground that it would be an increase of duties; that it had been tried before; that it would be impracticable, unequal, unjust, and productive of confusion, inasmuch as imported goods were constantly varying in value, and were well known to be, at all times, cheaper in New-York than in the commercial cities south of it. This would have the effect of drawing all the trade of the United States to New-York.

"Mr. Clay said he did not think it expedient, in deciding this question, to go forward five or six years, and make that an obstacle to the passage of a great national measure, which is not to go into operation until after that period. The honorable senator from Maryland said that the measure would be impracticable. Well, sir, if so, it will not be adopted. We do not adopt it now, said Mr. C.; we only adopt the principle, leaving it to future legislation to adjust the details. Besides, it would be the restoration of an ancient principle, known since the foundation of the government. It was but at the last session that the discriminating duty on goods coming from this side, and beyond the Cape of Good Hope, ten per cent. on one, and twenty per cent. on the other, was repealed. On what principle was it, said he, that this discrimination ever prevailed? On the principle of the home value. Were it not for the fraudulent invoices which every gentleman in this country was familiar with, he would not urge the amendment; but it was to detect and prevent these frauds that he looked upon the insertion of the clause as essentially necessary.

"Mr. Smith replied that he had not said that the measure was impracticable. He only intended to say that it would be inconvenient and unjust. Neither did he say that it would be adopted by a future Congress; but he said, if the principle was adopted now, it would be an entering wedge that might lead to the adoption of the measure. We all recollect, said Mr. S., that appropriations were made for surveys for internal improvements; and that these operated as entering wedges, and led to appropriations for roads and canals. The adoption of the principle contended for, by the senator from Kentucky, would not, in his (Mr. S.'s) opinion, prevent frauds in the invoices. That very principle was the foundation of all the frauds on the revenue of France and Spain, where the duties were assessed according to the value of the goods in the ports where entered. He again said that the effect of the amendment would be to draw the principal commerce of the country to the great city of New-York, where goods were cheaper.

"Mr. Forsyth understood, from what had fallen from the senator from Kentucky, that this was a vital question, and on it depended the success of this measure of conciliation and compromise, which was said to settle the distracted condition of the country. In one respect, it was said to be a vital question; and the next was, it was useful; and a strange contradiction followed: that the fate of this measure, to unite the jarrings of brother with brother, depended on the adoption of a principle which might or might not be adopted. He considered the amendment wrong in principle, because it would be both unequal and unjust in its operation, and because it would raise the revenue: as the duties would be assessed, not only on the value of the goods at the place whence imported, but on their value at the place of importation. He would, however, vote for the bill, even if the amendment were incorporated in it, provided he had the assurances, from the proper quarter, that it would effect the conciliation and compromise it was intended for.

"Mr. Clay had brought forward this measure, with the hope that, in the course of its discussion, it would ultimately assume such a shape as to reconcile all parties to its adoption, and tend to end the agitation of this unsettled question. If there be any member of this Congress (Mr. C. said), who says that he will take this bill now for as much as it is worth, and that he will, at the next Congress, again open the question, for the purpose of getting a better bill, of bringing down the tariff to a lower standard, without considering it as a final measure of compromise and conciliation, calculated also to give stability to a man of business, the bill, in his eyes, would lose all its value, and he should be constrained to vote against it.

"It was for the sake of conciliation, of nine years of peace, to give tranquility to a disturbed and agitated country, that he had, even at this late period of the session, introduced this measure, which, his respect for the other branch of the legislature, now sitting in that building, and who had a measure, looking to the same end, before them, had prevented him from bringing forward at an earlier period. But, when he had seen the session wearing away, without the prospect of any action in that other body, he felt himself compelled to come forward, though contrary to his wishes, and the advice of some of his best friends, with whom he had acted in the most perilous times.

"Mr. Calhoun said, he regretted, exceedingly, that the senator from Kentucky had felt it his duty to move the amendment. According to his present impressions, the objections to it were insurmountable; and, unless these were removed, he should be compelled to vote against the whole bill, should the amendment be adopted. The measure proposed was, in his opinion, unconstitutional. The constitution expressly provided that no preference should be given, by any regulation of commerce, to the ports of one State over those of another; and this would be the effect of adopting the amendment. Thus, great injustice and inequality must necessarily result from it; for the price of goods being cheaper in the Northern than in the Southern cities, a home valuation would give to the former a preference in the payment of duties. Again, the price of goods being higher at New Orleans and Charleston than at New-York, the freight and insurance also being higher, together with the increased expenses of a sickly climate, would give such advantages in the amount of duties to the Northern city, as to draw to it much of the trade of the Southern ones. In his view of the subject, this was not all. He was not merchant enough to say what would be the extent of duties under this system of home valuation; but, as he understood it, they must, of consequence, be progressive. For instance, an article is brought into New-York, value there 100 dollars. Twenty per cent. on that would raise the value of the article to one hundred and twenty dollars, on which value a duty of twenty per cent. would be assessed at the next importation, and so on. It would, therefore, be impossible to say to what extent the duties would run up. He regretted the more that the senator from Kentucky had felt it his duty to offer this amendment, as he was willing to leave the matter to the decision of a future Congress, though he did not see how they could get over the insuperable constitutional objections he had glanced at. Mr. C. appealed to the senator from Kentucky, whether, with these views, he would press his amendment, when he had eight or nine years in advance before it could take effect. He understood the argument of the senator from Kentucky to be an admission that the amendment was not now absolutely necessary. With respect to the apprehension of frauds on the revenue, Mr. C. said that every future Congress would have the strongest disposition to guard against them. The very reduction of duties, he said, would have that effect; it would strike at the root of the evil. Mr. C. said he agreed with the senator from Kentucky, that this bill will be the final effort at conciliation and compromise; and he, for one, was not disposed, if it passed, to violate it by future legislation.

"Mr. Clayton said that he could not vote for this bill without this amendment, nor would he admit any idea of an abandonment of the protective system; while he was willing to pass this measure, as one of concession from the stronger to the weaker party, he never could agree that twenty per cent. was adequate protection to our domestic manufactures. He had been anxious to do something to relieve South Carolina from her present perilous position; though he had never been driven by the taunts of Southern gentlemen to do that, which he now did, for the sake of conciliation. I vote for this bill, said Mr. C., only on the ground that it may save South Carolina from herself.

"Here Mr. C. yielded the floor to Mr. Calhoun, who said he hoped the gentleman would not touch that question. He entreated him to believe that South Carolina had no fears for herself. The noble and disinterested attitude she had assumed was intended for the whole nation, while it was also calculated to relieve herself, as well as them, from oppressive legislation. It was not for them to consider the condition of South Carolina only, in passing on a measure of this importance.

"Mr. Clayton resumed. Sir, said he, I must be permitted to explain, in my own way, the reasons which will govern me in the vote I am about to give. As I said before, I never have permitted the fears of losing the protective system, as expressed by the senator from Georgia, when he taunted us with the majority that they would have in the next Congress, when they would get a better bill, to influence my opinion upon this occasion. That we have been driven by our fears into this act of concession, I will not admit. Sir, I tell gentlemen that they may never get such another offer as the present; for, though they may think otherwise, I do not believe that the people of this country will ever be brought to consent to the abandonment of the protective system.

"Does any man believe that fifty per cent. is an adequate protection on woollens? No, sir; the protection is brought down to twenty per cent.; and when gentlemen come to me and say that this is a compromise, I answer, with my friend from Maine, that I will not vote for it, unless you will give me the fair twenty per cent.; and this cannot be done without adopting the principle of a home valuation. I do not vote for this bill because I think it better than the tariff of 1832, nor because I fear nullification or secession; but from a motive of concession, yielding my own opinions. But if Southern gentlemen will not accept this measure in the spirit for which it was tendered, I have no reason to vote for it. I voted, said Mr. C., against the bill of '32, for the very reason that Southern gentlemen declared that it was no concession; and I may vote against this for the same reasons. I thought it bad policy to pass the bill of '32. I thought it a bad bargain, and I think so now. I have no fear of nullification or secession; I am not to be intimidated by threats of Southern gentlemen, that they will get a better bill at the next session. "Rebellion made young Harry Percy's spurs grow cold." I will vote for this measure as one of conciliation and compromise; but if the clause of the senator from Kentucky is not inserted, I shall be compelled to vote against it. The protective system never can be abandoned; and I, for one, will not now, or at any time, admit the idea.

"Mr. Dallas was opposed to the proposition from the committee, and agreed with Mr. Calhoun. He would state briefly his objection to the proposition of the committee. Although he was from a State strongly disposed to maintain the protective policy, he labored under an impression, that if any thing could be done to conciliate the Southern States, it was his duty to go for a measure for that purpose; but he should not go beyond it. He could do nothing in this way, as representing his particular district of the country, but only for the general good. He could not agree to incorporate in the bill any principle which he thought erroneous or improper. He would sanction nothing in the bill as an abandonment of the principle of protection. Mr. D. then made a few remarks on home and foreign valuation, to show the ground of his objections to the amendment of Mr. Clay, though it did not prevent his strong desire to compromise and conciliation.

"Mr. Clay thought it was premature to agitate now the details of a legislation which might take place nine years hence. The senator from South Carolina had objected to the amendment on constitutional grounds. He thought he could satisfy him, and every senator, that there was no objection from the constitution.

"He asked if it was probable that a valuation in Liverpool could escape a constitutional objection, if a home valuation were unconstitutional? There was a distinction in the foreign value, and in the thing valued. An invoice might be made of articles at one price in one port of England, and in another port at another price. The price, too, must vary with the time. But all this could not affect the rule. There was a distinction which gentlemen did not observe, between the value and the rule of valuation; one of these might vary, while the other continued always the same. The rule was uniform with regard to direct taxation; yet the value of houses and lands of the same quality are very different in different places. One mode of home valuation was, to give the government, or its officers, the right to make the valuation after the one which the importer had given. It would prevent fraud, and the rule would not violate the constitution. It was an error that it was unconstitutional; the constitution said nothing about it. It was absurd that all values must be established in foreign countries; no other country on earth should assume the right of judging. Objections had been made to leaving the business of valuation in the hands of a few executive officers; but the objections were at least equally great to leaving it in the hands of foreigners. He thought there was nothing in the constitutional objection, and hoped the measure would not be embarrassed by such objections.

"Mr. Calhoun said that he listened with great care to the remarks of the gentleman from Kentucky, and other gentlemen, who had advocated the same side, in hopes of having his objection to the mode of valuation proposed in the amendment removed; but he must say, that the difficulties he first expressed still remained. Passing over what seemed to him to be a constitutional objection, he would direct his observation to what appeared to him to be its unequal operation. If by the home valuation be meant the foreign price, with the addition of freight, insurance, and other expenses at the port of destination, it is manifest that as these are unequal between the several ports in the Union—for instance, between the ports New-York and New Orleans—the duty must also be unequal in the same degree, if laid on value thus estimated. But if, by the home valuation be meant the prices current at the place of importation, then, in addition to the inequality already stated, there would have to be added the additional inequality resulting from the different rates of profits, and other circumstances, which must necessarily render prices very unequal in the several ports of this widely-extended country. There would, in the same view, be another and a stronger objection, which he alluded to in his former remarks, which remained unanswered—that the duties themselves constitute part of the elements of the current prices of the imported articles; and that, to impose a duty on a valuation ascertained by the current prices, would be to impose, in reality, a duty upon a duty, and must necessarily produce that increased progression in duties, which he had already attempted to illustrate.

"He knew it had been stated, in reply, that a system which would produce such absurd results could not be contemplated; that Congress, under the power of regulating, reserved in the amendment, would adopt some mode that would obviate these objections; and, if none such could be devised, that the provisions of the amendment would be simply useless. His difficulty was not removed by the answer to the objection. He was at a loss to understand what mode could be devised free from objection; and, as he wished to be candid and explicit, he felt the difficulty, as an honest man, to assent to a general measure, which, in all the modifications under which he had viewed it, was objectionable. He again repeated, that he regretted the amendment had been offered, as he felt a solicitude that the present controversy should be honorably and fairly terminated. It was not his wish that there should be a feeling of victory on either side. But, in thus expressing his solicitude for an adjustment, he was not governed by motives derived from the attitude which South Carolina occupied, and which the senator from Delaware stated to influence him. He wished that senator, as well as all others, to understand that that gallant and patriotic State was far from considering her situation as one requiring sympathy, and was equally far from desiring that any adjustment of this question should take place with the view of relieving her, or with any other motive than a regard to the general interests of the country. So far from requiring commiseration, she regarded her position with very opposite light, as one of high responsibility, and exposing her to no inconsiderable danger; but a position voluntarily and firmly assumed, with a full view of consequences, and which she was determined to maintain till the oppression under which she and the other Southern States were suffering was removed.

"In wishing, then, to see a termination to the present state of things, he turned not his eyes to South Carolina, but to the general interests of the country. He did not believe it was possible to maintain our institutions and our liberty, under the continuance of the controversy which had for so long a time distracted us, and brought into conflict the two great sections of the country. He was in the last stage of madness who did not see, if not terminated, that this admirable system of ours, reared by the wisdom and virtue of our ancestors—virtue, he feared, which had fled forever—would fall under its shocks. It was to arrest this catastrophe, if possible, by restoring peace and harmony to the Union, that governed him in desiring to see an adjustment of the question.

"Mr. Clayton said, this point had been discussed in the committee; and it was because this amendment was not adopted that he had withheld his assent from the bill. They had now but seven business days of this session remaining; and it would require the greatest unanimity, both in that body and in the other House, to pass any bill on this subject. Were gentlemen coming from the opposite extremes of the Union, and representing opposite interests, to agree to combine together, there would hardly be time to pass this bill into a law; yet if he saw that it could be done, he would gladly go on with the consideration of the bill, and with the determination to do all that could be done. The honorable member from South Carolina had found insuperable obstacles where he (Mr. C.) had found none. On their part, if they agreed to this bill, it would only be for the sake of conciliation; if South Carolina would not accept the measure in that light, then their motive for arrangement was at an end. He (Mr. C.) apprehended, however, that good might result from bringing the proposition forward at that time. It would be placed before the view of the people, who would have time to reflect and make up their minds upon it against the meeting of the next Congress. He did not hold any man as pledged by their action at this time. If the arrangement was found to be a proper one, the next Congress might adopt it. But, for the reasons he had already stated, he had little hope that any bill would be passed at this session; and, to go on debating it, day after day, would only have the effect of defeating the many private bills and other business which were waiting the action of Congress. He would therefore propose to lay the bill for the present on the table; if it were found, at a future period, before the expiration of the session, that there was a prospect of overcoming the difficulties which now presented themselves, and of acting upon it, the bill might be again taken up. If no other gentleman wished to make any observations on the amendment, he would move to lay the bill on the table.

"Mr. Bibb requested the senator from Delaware to withdraw his motion, whilst he (Mr. B.) offered an amendment to the amendment, having for its object to get rid of that interminable series of duties of which gentlemen had spoken.

"Mr. Clayton withdrew his motion.

"Mr. Bibb proceeded to say, that his design was to obviate the objection of the great increase that would arise from a system of home valuation. He hoped that something satisfactory would be done this session yet. He should vote for every respectable proposition calculated to settle the difficulty. He hoped there would be corresponding concessions on both sides; he wished much for the harmony of the country. It was well known that he (Mr. B.) was opposed to any tariff system other than one for revenue, and such incidental protection as that might afford. His hope was to strike out a middle course; otherwise, he would concur in the motion that had been made by the senator from Delaware [Mr. Clayton]. Mr. B. then submitted his amendment, to insert the words 'before payment of,' &c.

"Mr. Clay was opposed to the amendment, and he hoped his worthy colleague would withdraw it. If one amendment were offered and debated, another, and another would follow; and thus, the remaining time would be wasted. To fix any precise system would be extremely difficult at present. He only wished the principle to be adopted.

"Mr. Bibb acceded to the wish of the senator from Kentucky, and withdrew his amendment accordingly.

"Mr. Tyler was opposed to the principle of this home valuation. The duties would be taken into consideration in making the valuations; and thus, after going down hill for nine and a half years, we would as suddenly rise up again to prohibition. He complained that there were not merchants enough on this floor from the South; and, in this respect, the Northern States had the advantage. But satisfy me, said Mr. T., that the views of the senator from South Carolina [Mr. Calhoun] are not correct, and I shall vote for the proposition.

"Mr. Moore said he would move an amendment which he hoped would meet the views of the gentlemen on the other side; it was to this effect:

"Provided, That no valuation be adopted that will operate unequally in different ports of the United States.

"Mr. Calhoun also wished that the amendment would prevail, though he felt it would be ineffectual to counteract the inequality of the system. But he would raise no cavilling objections; he wished to act in perfect good faith; and he only wished to see what could be done.

"Mr. Moore said he had but two motives in offering the amendment to the amendment of the senator. The first was, to get rid of the constitutional objections to the amendment of the senator from Kentucky; and the second was, to do justice to those he had the honor to represent. The honorable gentleman said that Mobile and New Orleans would not pay higher duties, because the goods imported there would be of more value; and this was the very reason, Mr. M. contended, why the duties would be higher. Did not every one see that if the same article was valued in New-York at one hundred dollars, and in Mobile at one hundred and thirty-five dollars, the duty of twenty per cent. would be higher at the latter place? He had nothing but the spirit of compromise in view, and hoped gentlemen would meet him in the same spirit. He would now propose, with the permission of the senator from Maine, to vary his motion, and offer a substitute in exact conformity with the language of the constitution. This proposition being admitted by general consent, Mr. Moore modified his amendment accordingly. (It was an affirmation of the constitution, that all duties should be uniform, &c).

"Mr. Forsyth supported the amendment of the senator from Alabama, and hoped it would meet the approbation of the Senate. It would get rid of all difficulty about words. No one, he presumed, wished to violate the constitution; and if the measure of the senator from Kentucky was consistent with the constitution, it would prevail; if not, it would not be adopted.

"Mr. Holmes moved an adjournment.

"Mr. Moore asked for the yeas and nays on the motion to adjourn, and they were accordingly ordered, when the question was taken and decided in the affirmative—Yeas 22, nays 19, as follows:

"Yeas.—Messrs. Bell, Clayton, Dallas, Dickerson, Ewing, Foot, Frelinghuysen, Holmes, Johnston, Kane, Knight, Naudain, Prentiss, Robbins, Robinson, Silsbee, Smith, Tipton, Tomlinson, Waggaman, Webster, Wilkins.—22.

"Nays.—Messrs. Bibb, Black, Buckner, Calhoun, Clay, Dudley, Grundy, Hendricks, Hill, King, Miller, Moore, Poindexter, Sprague, Rives, Troup, Tyler, White, Wright.—19.

"The Senate then, at half-past four o'clock, adjourned.

"Friday, February 22.

"Mr. Smith (of Md.) said, the motion to amend by the word 'uniform' was unnecessary. That was provided for by the constitution. 'All duties must be uniform.' An addition to the cost of goods of forty, fifty, or sixty per cent. would be uniform, but would not prevent fraud, nor the certainty of great inequality in the valuation in the several ports. The value of goods at New Orleans particularly, and at almost every other port, will be higher than at New-York. I have not said that such mode was unconstitutional, nor have I said that it was impracticable; few things are so. But I have said, and do now say, that the mode is open to fraud, and more so than the present. At present the merchant enters his goods, and swears to the truth of his invoice. One package in every five or ten is sent to the public warehouse, and there carefully examined by two appraisers on oath. If they find fraud, or suspect fraud, then all the goods belonging to such merchants are sent to the appraisers; and if frauds be discovered, the goods are forfeited. No American merchant has ever been convicted of such fraud. Foreigners have even been severely punished by loss of their property. The laws are good and sufficiently safe as they now stand on our statutes. I wish no stronger; we know the one, we are ignorant how the other will work. Such a mode of valuation is unknown to any nation except Spain, where the valuation is arbitrary; and the goods are valued agreeably to the amount of the bribe given. This is perfectly understood and practised. It is in the nature of such mode of valuation to be arbitrary. No rule can be established that will make such mode uniform throughout the Union, and some of the small ports will value low to bring business to their towns. A scene of connivance and injustice will take place that no law can prevent.

"The merchant will be put to great inconvenience by the mode proposed. All his goods must be sent to the public warehouses, and there opened piece by piece; by which process they will sustain essential injury. The goods will be detained from the owners for a week or a month, or still more, unless you have one or two hundred appraisers in New-York, and proportionately in other ports; thus increasing patronage; and with such a host, can we expect either uniformity or equality in the valuation? All will not be honest, and the Spanish mode will be adopted. One set of appraisers, who value low, will have a priority. In fact, if this mode should ever be adopted, it will cause great discontent, and must soon be changed. As all understand the cause to be to flatter the manufacturers with a plan which they think will be beneficial to them, but which, we all know, can never be realized, it is deception on its face, as is almost the whole of the bill now under our consideration.

"Remember, Mr. President, that the senators from Kentucky and South Carolina [Mr. Clay and Mr. Calhoun], have declared this bill (if it should become a law), to be permanent, and that no honorable man who shall vote for it can ever attempt a change; yet, sir, the pressure against it will be such at the next session that Congress will be compelled to revise it; and as the storm may then have passed over Congress, a new Congress, with better feelings, will be able to act with more deliberation, and may pass a law that will be generally approved. Nearly all agree that this bill is a bad bill. A similar opinion prevailed on the passage of the tariff of 1828, and yet it passed, and caused all our present danger and difficulties. All admit that the act of 1828, as it stands on our statutes, is constitutional. But the senator [Mr. Calhoun] has said that it is unconstitutional, because of the motive under which it passed; and he said that that motive was protection to the manufacturers. How, sir, I ask, are we to know the motives of men? I thought then, and think now, that the approaching election for President tended greatly to the enactments of the acts of 1824 and 1828; many of my friends thought so at the time. I have somewhere read of the minister of a king or emperor in Asia, who was anxious to be considered a man of truth, and always boasted of his veracity. He hypocritically prayed to God that he might always speak the truth. A genii appeared and told him that his prayer had been heard, touched him with his spear, and said, hereafter you will speak truth on all occasions. The next day he waited on his majesty and said, Sire, I intended to have assassinated you yesterday, but was prevented by the nod of the officer behind you, who is to kill you to-morrow. The result I will not mention. Now, Mr. President, if the same genii was to touch with his spear each of the senators who voted for the act of 1828, and an interrogator was appointed, he would ask, what induced you to give that vote? Why sir, I acted on sound principles. I believe it is the duty of every good government to promote the manufactures of the nation; all historians eulogize the kings who have done so, and censure those kings who have neglected them. I refer you to the history of Alfred. It is known that the staple of England was wool, which was sent to Flanders to be exchanged for cloths. The civil wars, by the invasions of that nation, kept them long dependent on the Flemings for the cloths they wore. At length a good king governed; and he invited Flemish manufacturers to England, and gave them great privileges. They taught the youth of England, the manufacture succeeded, and now England supplies all the world with woollen cloth. The interrogator asked another the same question. His answer might have been, that he thought the passing of the law would secure the votes of the manufacturers in favor of his friend who wanted to be the President. Another answer might have been, a large duty was imposed on an article which my constituents raised; and I voted for it, although I disliked all the residue of the bill. Sir, the motives, no doubt, were different that induced the voting for that bill, and were, as we all know, not confined to the protective system. Many voted on political grounds, as many will on this bill, and as they did on the enforcing bill. We cannot declare a bill unconstitutional, because of the motives that may govern the voters. It is idle to assign such a cause for the part that is now acting in South Carolina. I know, Mr. President, that no argument will have any effect on the passage of this bill. The high contracting parties have agreed. But I owed it to myself to make these remarks.

"Mr. Webster said, that he held the home valuation to be, to any extent, impracticable; and that it was unprecedented, and unknown in any legislation. Both the home and foreign valuation ought to be excluded as far as possible, and specific duties should be resorted to. This keeping out of view specific duties, and turning us back to the principle of a valuation was, in his view, the great vice of this bill. In England five out of six, or nine out of ten articles, pay specific duties, and the valuation is on the remnant. Among the articles which pay ad valorem duties in England are silk goods, which are imported either from India, whence they are brought to one port only; or from Europe, in which case there is a specific and an ad valorem duty; and the officer has the option to take either the one or the other. He suggested that the Senate, before they adopted the ad valorem principle, should look to the effects on the importation of the country.

"He took a view of the iron trade, to show that evil would result to that branch from a substitution of the ad valorem for the specific system of duties. He admitted himself to be unable to comprehend the elements of a home valuation, and mentioned cases where it would be impossible to find an accurate standard of valuation of this character. The plan was impracticable and illusory.

"Mr. Clayton said, I would go for this bill only for the sake of concession. The senator from South Carolina can tell whether it is likely to be received as such, and to attain the object proposed; if not, I have a plain course to pursue; I am opposed to the bill. Unless I can obtain for the manufacturers the assurance that the principle of the bill will not be disturbed, and that it will be received in the light of a concession, I shall oppose it.

"Mr. Benton objected to the home valuation, as tending to a violation of the constitution of the United States, and cited the following clause: 'Congress shall have power to lay and collect taxes, duties, imposts, and excises; but all duties, imposts, and excises shall be uniform throughout the United States.' All uniformity of duties and imposts, he contended, would be destroyed by this amendment. No human judgment could fix the value of the same goods at the same rate, in all the various ports of the United States. If the same individual valued the goods in every port, and every cargo in every port, he would commit innumerable errors and mistakes in the valuation; and, according to the diversity of these errors and mistakes, would be the diversity in the amount of duties and imposts laid and collected in the different ports.

"Mr. B. objected to the home valuation, because it would be injurious and almost fatal to the southern ports. He confined his remarks to New Orleans. The standard of valuation would be fifteen or twenty per cent. higher in New Orleans than in New-York, and other northern ports. All importers will go to the northeastern cities, to evade high duties at New Orleans; and that great emporium of the West will be doomed to sink into a mere exporting city, while all the money which it pays for exports must be carried off and expended elsewhere for imports. Without an import trade, no city can flourish, or even furnish a good market for exports. It will be drained of its effective cash, and deprived of its legitimate gains, and must languish far in the rear of what it would be, if enriched with the profits of an import trade. As an exporter, it will buy; as an importer, it will sell. All buying, and no selling, must impoverish cities as well as individuals. New Orleans is now a great exporting city; she exports more domestic productions than any city in the Union; her imports have been increasing, for some years; and, with fair play, would soon become next to New-York, and furnish the whole valley of the Mississippi with its immense supplies of foreign goods; but, under the influence of a home valuation, it must lose a greater part of the import trade which it now possesses. In that loss, its wealth must decline; its capacity to purchase produce for exportation must decline; and as the western produce must go there, at all events, every western farmer will suffer a decline in the value of his own productions, in proportion to the decline of the ability of New Orleans to purchase it. It was as a western citizen that he pleaded the cause of New Orleans, and objected to this measure of home valuation, which was to have the most baneful effect upon her prosperity.

"Mr. B. further objected to the home valuation, on account of the great additional expense it would create; the amount of patronage it would confer; the rivalry it would beget between importing cities; and the injury it would occasion to merchants, from the detention and handling of their goods; and concluded with saying, that the home valuation was the most obnoxious feature ever introduced into the tariff acts; that it was itself equivalent to a separate tariff of ten per cent.; that it had always been resisted, and successfully resisted, by the anti-tariff interest, in the highest and most palmy days of the American system, and ought not now to be introduced when that system is admitted to be nodding to its fall; when its death is actually fixed to the 30th day of June, 1842, and when the restoration of harmonious feelings is proclaimed to be the whole object of this bill.

"Mr. B. said this was a strange principle to bring into a bill to reduce duties. It was an increase, in a new form—an indefinable form—and would be tax upon tax, as the whole cost of getting the goods ready for a market valuation here, would have to be included: original cost, freight, insurance, commissions, duties here. It was new protection, in a new form, and in an extraordinary form, and such as never could be carried before. It had often been attempted, as as a part of the American system, but never received countenance before.

"Mr. Calhoun rose and said:

"As the question is now about to be put on the amendment offered by the senator from Kentucky, it became necessary for him to determine whether he should vote for or against it. He must be permitted again to express his regret that the senator had thought proper to move it. His objection still remained strong against it; but, as it seemed to be admitted, on all hands, that the fate of the bill depended on the fate of the amendment, feeling, as he did, a solicitude to see the question terminated, he had made up his mind, not, however, without much hesitation, not to interpose his vote against the adoption of the amendment; but, in voting for it, he wished to be distinctly understood, he did it upon two conditions: first, that no valuation would be adopted that should come in conflict with the provision in the constitution which declares that duties, excises, and imposts shall be uniform; and, in the next place, that none would be adopted which would make the duties themselves a part of the element of a home valuation. He felt himself justified in concluding that none such would be adopted; as it had been declared by the supporters of the amendment, that no such regulation was contemplated; and, in fact, he could not imagine that any such could be contemplated, whatever interpretation might be attempted hereafter to be given to the expression of the home market. The first could scarcely be contemplated, as it would be in violation of the constitution itself; nor the latter, as it would, by necessary consequence, restore the very duties, which it was the object of this bill to reduce, and would involve the glaring absurdity of imposing duties on duties, taxes on taxes. He wished the reporters for the public press to notice particularly what he said, as he intended his declaration to be part of the proceedings.

"Believing, then, for the reasons which he had stated, that it was not contemplated that any regulation of the home valuation should come in conflict with the provisions of the constitution which he had cited, nor involve the absurdity of laying taxes upon taxes, he had made up his mind to vote in favor of the amendment.

"Mr. Smith said, any declaration of the views and motives, under which any individual senator might now vote, could have no influence, in 1842; they would be forgotten long before that time had arrived. The law must rest upon the interpretation of its words alone.

"Mr. Calhoun said he could not help that; he should endeavor to do his duty.

"Mr. Clayton said there was certainly no ambiguity whatever in the phraseology of the amendment. In advocating it, he had desired to deceive no man; he sincerely hoped no one would suffer himself to be deceived by it.

"Mr. Wilkins said, if it had been his intention to have voted against the amendment, he should have remained silent; but, after the explicit declaration of the honorable gentleman from South Carolina [Mr. Calhoun] of the reason of his vote, and believing, himself, that the amendment would have a different construction from that given it by the gentleman, he [Mr. W.] would as expressly state, that he would vote on the question, with the impression that it would not hereafter be expounded by the declaration of any senator on this floor, but by the plain meaning of the words in the text.

"The amendment of Mr. Clay, fixing the principle of home valuation as a part of the bill, was then adopted, by the following vote:

"Yeas.—Messrs. Bell, Black, Bibb, Calhoun, Chambers, Clay, Clayton, Ewing, Foot, Frelinghuysen, Hill, Holmes, Johnson, King, Knight, Miller, Moore, Naudain, Poindexter, Prentiss, Rives, Robbins, Sprague, Tomlinson, Tyler, Wilkins.—26.

"Nays.—Messrs. Benton, Buckner, Dallas, Dickerson, Dudley, Forsyth, Grundy, Kane, Robinson, Seymour, Silsbee, Smith, Waggaman, Webster, White, Wright.—16."

And thus a new principle of protection, never before engrafted on the American system, and to get at which the constitution had to be violated in the article of the uniformity of duties, was established! and established by the aid of those who declared all protection to be unconstitutional, and just cause for the secession of a State from the Union! and were then acting on that assumption.