Tuesday, July 4.
Duty on Salt.
Mr. Allen called up the resolution he yesterday laid upon the table, for laying an additional duty on salt.
Mr. Gallatin moved to postpone the consideration of this resolution until the second Monday in November.
Some debate took place on this question; and, when it came to be taken, the House was equally divided, there being 43 votes for the postponement, and 43 against it. The Speaker decided against the postponement, and the resolution was referred to a Committee of the Whole immediately.
The House accordingly resolved itself into a Committee of the Whole on this resolution; when
Mr. Allen moved the blank cents per bushel be filled with twelve.
Mr. Swanwick wished the sum to be seven.
Mr. Allen consented to make it eight.
Mr. Sitgreaves hoped it would be twelve.
The question was first taken upon twelve, and negatived, there being only 30 votes for it. It was next taken upon eight, and carried, 47 to 42, and then upon the resolution as amended, and carried by the same numbers.
The committee rose, and the House took up the resolution.
After a few words from Mr. Lyon against the tax, and from Mr. Williams in favor of it,
Mr. W. Smith went at considerable length into a defence of the measure, in the course of which, he said, they had already agreed upon appropriations to the amount of $700,000 or $800,000, and were not certain of any revenue to meet the expenditure. The license act, he believed, might produce from $50,000 to $60,000, and the stamp act from $100,000 to $150,000, if they should be passed; but he considered this as doubtful. But if these laws were passed, this tax on salt was necessary to keep up the equilibrium of taxation;[22] for the stamp act would almost exclusively fall upon commerce and large cities; this would principally be felt by the agricultural part of the Union; and, if it were not agreed to, they must have a land tax.
Mr. Shepard said, no tax would operate so equally as a salt tax, as every citizen must make use of it in a smaller or larger quantity.
Mr. Gallatin opposed this tax on the same ground which he heretofore opposed it, as oppressive to certain parts of the Union, and no way affecting others, and therefore wholly unequal, and particularly as it bore heavy on the poorer classes of society. He was against it also, because it was not proposed that the amount of this tax should go towards a reduction of the public debt, but merely to encourage expense in the Government; for he believed if they filled the Treasury with money, means would be found to expend it. Indeed, if the Treasury had not been at present in rather a low state, he believed they should have gone into most of the expensive measures proposed to them this session. He allowed the tax would be productive, as a tax upon bread, air, or any necessary of life, must be productive. If this tax, however, were to be agreed to, he should wish to make an amendment to the present proposition. At present the drawback allowed to the New England States, on account of salt used in the fisheries, amounted to about $90,000 a year, though by the statements it appeared there should only have been allowed $50,000. To rectify this, he proposed the following proviso to be added to the resolution, viz:
Provided, That the allowance now given upon vessels employed in the fisheries, shall not be increased.
This amendment was opposed by Messrs. Harper, Sewall, Dana, and Kittera, on the ground of its being an unfair way of introducing the proposition, as no one expected it; they were not prepared to meet it; the correctness of the statement was doubted; and, if it were correct, it was said, the proper way of doing the business would not be to pass the present law without a drawback, but to reduce the former drawback and make it less on this occasion.
The motion was supported by the mover, and Messrs. Venable and Livingston; but, after some discussion, Mr. Gallatin withdrew it, in order to give gentlemen time to make themselves acquainted with the fact he had stated; but he expressed his intention of renewing the proposition when the bill came in.
The question then returned upon the original resolution; when
Mr. Harper went at length into a defence of the measure, (in the course of which he charged Mr. Gallatin with being mistaken $12,000 as to the amount of the drawback allowed,) and insisted that it was a fair and proper tax, and that so small an advance upon the present duty could not operate oppressively upon any part of the community.
Mr. Nicholas followed in opposition. He dwelt considerably on the unjust and unequal manner in which this tax would operate. He said he did not view this question as deciding merely whether an additional tax of eight cents should be laid upon salt; but whether that necessary of life should be called upon for every thing Government should want. He was in favor of a direct tax, which should fall equally, though it might, in the origin, be attended with some considerable expense; but, if they went on raising partial sums in this way by indirect means, the expense of instituting a direct tax would always be an obstacle, and indirect taxes would always be had recourse to. He did not believe it to be absolutely necessary to provide a revenue this session, as he believed money might as well be borrowed without as with additional revenue, and at the next session, the subject could be fully gone into.
Mr. Lyon spoke of the discontent which had always been shown in the part of the country from whence he came, which, he said, would be greatly increased by this addition. It was not only a duty of eight cents, every cent would be made four before the salt reached them. There was no kind of tax which his constituents would not sooner bear. It had been said that a land tax would cost twenty-five per cent. to collect it; but what was twenty-five compared with three hundred per cent.? Nor did he believe this tax would prevent a land tax. He believed they should go on taxing the people until they would be greatly dissatisfied. He would much rather a tax of eight cents was laid upon tea, which would produce an equal sum.
The question was taken by yeas and nays, and decided in the affirmative—47 to 41.