The Life of George Washington, Vol. 5 / Commander in Chief of the American Forces During the War / which Established the Independence of his Country and First / President of the United States

by John Marshall

In the house of representatives also, this bill encountered a serious opposition. The sections which prohibited the sale of prizes in the United States, and that which declared it to be a misdemeanour to accept a commission from a foreign power within the territory of the United States, to serve against a nation with whom they were at peace, were struck out; but that which respected the acceptance of commissions was afterwards reinstated.

In the course of the session, several other party questions were brought forward, which demonstrated, at the same time, the strength, and the zeal of the opposition. The subject of amending the constitution was revived; and a resolution was agreed to in both houses for altering that instrument, so far as to exempt states from the suits of individuals. While this resolution was before the senate, it was also proposed to render the officers of the bank, and the holders of stock, ineligible to either branch of the legislature; and this proposition, so far as respected officers in the bank, was negatived by a majority of only one vote.[19] A bill to sell the shares of the United States in the bank was negatived by the same majority.

Inquiry into the conduct of the secretary of the treasury terminates honourably to him.

[In] both houses inquiries were set on foot respecting the treasury department, which obviously originated in the hope of finding some foundation for censuring that officer, but which failed entirely. In a similar hope, as respected the minister of the United States at Paris, the senate passed a vote requesting the President to lay before that body, his correspondence with the French republic, and also with the department of state.[20]

The preparations for an eventual war, which the aspect of public affairs rendered it imprudent to omit, and a heavy appropriation of a million, which, under the title of foreign intercourse, was made for the purpose of purchasing peace from Algiers, and liberating the Americans who were in captivity, created demands upon the treasury which the ordinary revenues were insufficient to satisfy.

That the imposition of additional taxes had become indispensable, was a truth too obvious to be controverted with the semblance of reason; but the subjects of taxation afforded at all times an ample field for discussion.

The committee of ways and means reported several resolutions for extending the internal duties to various objects which were supposed capable of bearing them, and also proposed an augmentation of the impost on foreign goods imported into the United States, and a direct tax. It was proposed to lay a tax on licenses to sell wines and spirituous liquors, on sales at auction, on pleasure carriages, on snuff manufactured, and on sugar refined in the United States, and also to lay a stamp duty.

Internal taxes laid.

The direct tax was not even supported by the committee. Only thirteen members voted in its favour. The augmentation of the duty on imposts met with no opposition. The internal duties were introduced in separate bills, that each might encounter only those objections which could be made to itself; and that the loss of one might not involve the loss of others. The resolution in favour of stamps was rejected: the others were carried, after repeated and obstinate debates. The members of the opposition were in favour of raising the whole sum required by additional burdens on trade, and by direct taxes.

While these measures were depending before congress, memorials and resolutions against them were presented by the manufacturers, which were expressed in terms of disrespect that evidenced the sense in which numbers understood the doctrine, that the people were sovereign, and those who administered the government, their servants. This opportunity for charging the government with tyranny and oppression, with partiality and injustice, was too favourable not to be embraced by the democratic societies, those self proclaimed watchful sentinels over the rights of the people. A person unacquainted with those motives which, in the struggle of party, too often influence the conduct of men, would have supposed a direct tax to be not only in itself more eligible, but to be more acceptable to the community than those which were proposed. To the more judicious observers of the springs of human action, the reverse was known to be the fact.