Monday, February 15.
Suspension of Non-Importation.
Mr. Cheves, from the Committee of Ways and Means, made the following report:—
The Committee of Ways and Means report: That they have deemed it to be their duty, that the public service may not suffer and that the public credit may be duly supported, to look beyond the ways and means of the present year, and to take into consideration the revenue which may be wanted for the year 1814. That an estimate of the probable amount of the revenue which will accrue under existing laws, and be receivable within that year, has been submitted to Congress in the Annual Report of the Secretary of the Treasury made during the present session. That, comparing the amount thereof with the sums which will probably be required by a prudent regard to the public credit, it appears to the committee indispensably necessary to make a further provision; that this may be done by a partial suspension of the non-importation acts, which will not greatly lessen their injurious effects upon the enemy, by an additional duty on foreign tonnage, and by the imposition of internal taxes and duties: That, in their opinion, all these means will be necessary to supply the revenue which will be wanted: That it is impracticable, during the present session, consistently with a due attention to the other business of the nation, to enact the laws necessary to embrace the last-mentioned object; but that this may be done without difficulty and without a delay which will be injurious either to the public credit or the public service, by an earlier meeting of Congress than the constitutional period, which it will be the duty of Congress, or the Executive branch of the Government, to fix at such time as shall be deemed most proper and expedient: That it is, however, necessary that the suspension of the non-importation acts which is contemplated should be enacted at the present session of Congress: and for this purpose and the imposition of additional duties on foreign tonnage, they beg leave to report a bill. They also report herewith a correspondence between the Secretary of the Treasury and this committee on the subject of this report.
Letter from the Chairman of the Committee of Ways and Means to the Secretary of the Treasury:
Committee-Room, Feb. 3, 1813.
Sir: I am directed by the Committee of Ways and Means to request from you the favor of a reply to the following questions:
1. What, in your opinion, would be the probable amount of revenue applicable to the service of the year 1814, which would result from a modification or partial repeal of the non-importation acts, such as is suggested in your letter, of the 10th of June, 1812, addressed to the Committee of Ways and Means?
2. Is the modification suggested by that letter the best in your opinion that can be devised to obtain a given revenue, with the least possible diminution of the effects of the non-importation acts? If not, be pleased to suggest such alterations and improvements as occur to your mind.
3. Are there, in your opinion, any further legal provisions necessary, or will any be expedient, more effectually to enforce the non-importation acts, or to insure the more effectual collection of the revenue?
4. Would it, in your opinion, be advisable to increase the duty on foreign tonnage? If it would, to what amount? and what would be the probable addition to the revenue applicable to the year 1814 by such increase? I am, &c.,
LANGDON CHEVES.
Hon. Albert Gallatin, &c.
Answer of the Secretary.
Treasury Department, Feb. 9, 1813.
Sir: I have the honor to submit the following answer to the questions proposed in your letter of the 3d instant:
1. It is believed from the reasons stated in my letter of the 10th June last to the Committee of Ways and Means, that the amount of revenue applicable to the service of the year 1814, which would result from a modification of the non-importation acts suggested in the said letter, may be estimated at about five million of dollars, provided that modification takes place during the present session of Congress.
2. No better modification, for the purposes therein intended, has suggested itself than that proposed in the letter aforesaid. But it would seem requisite, for the same object, that no drawback should be allowed on the re-exportation of the merchandise which may be thus imported.
3. The most important legal provision which appears necessary to enforce the non-importation acts, is a positive prohibition of a restoration by order of court of merchandise, the importation of which is prohibited by law. It is also believed that it will be necessary to order all the cargoes of salt, particularly from Lisbon, to be discharged under the inspection of proper officers; and it appears reasonable that the expense should be defrayed by the importers.
4. It appears, in every point of view, highly desirable, that the duty on foreign tonnage should be increased. A duty of ten dollars per ton does not seem greater than what is required for the protection of American vessels. But I cannot form any correct estimate of the probable addition resulting to the revenue from such increase. Much would depend on the suppression of the trade carried on by American vessels with enemies' licenses.
With respect to the necessity of providing an additional revenue for the year 1814, I beg leave to refer to the statements made and opinions expressed, when I had the honor several weeks ago to wait on the Committee of Ways and Means. And I beg leave to add that this necessity has been considerably increased by the subsequent expenditures authorized by law; amongst which must be particularly mentioned the act for the increase of the navy, and that for raising twenty thousand men for one year. Indeed, considering the general rate of expenditure resulting from the war measures which have been adopted, I am of opinion it will be necessary to recur both to a modification or repeal of the non-importation acts and to the proposed internal taxes, in order to provide a revenue commensurate with those expenses. When an additional revenue of five millions was believed sufficient, that opinion was predicated on the supposition made by the committee, that annual loans of only ten or twelve millions of dollars would be wanted. With a revenue of twelve millions of dollars for this year, it is ascertained that a loan of at least sixteen millions is necessary.
I have the honor to be, &c.,
ALBERT GALLATIN.
Hon. Langdon Cheves, Chairman, &c.
The report and documents were read.
Mr. Cheves then introduced the bill above mentioned, which was read the first time, and ordered to be read a second time by a vote of 44 to 36.