On May 8th, 1840, a bill to insure a more faithful execution of the laws relating to the collection of duties on imports being under consideration of the house, Mr. Adams, after commenting on the nature and injurious consequences of the fraud which it was the object of the bill to prevent, said that this practice was "a sort of national thing," to such an extent were the citizens of Great Britain accustomed to come over to this country to cheat us out of our revenue, and to defraud our manufacturing interest, and added:
"I have said that there is something national in this matter, and I will now proceed to state what, in my judgment, lies at the bottom of this proceeding. It is a maxim of British commercial law that it is lawful for the citizens of one nation to defraud the revenues of other nations. The author of the maxim was a man famous throughout the civilized world,—a man of transcendent talents, who fixed, more, perhaps, than any other man of the same century, his impress on the age in which he lived, and upon the laws of England,—I mean Lord Mansfield. In some respects it has been greatly to the advantage of those laws, but in others as much to their disadvantage and discredit, of which the maxim of which I now speak is a signal instance. He was the first British judge who established the principle that it is a lawful thing for Englishmen to cheat the revenue laws of other nations, especially those of Spain and Portugal.
"This principle was first settled in an act of Parliament, the object of which was to suppress what are denominated wager policies of insurance—a species of instrument well known to lawyers as gambling policies, being entered into when the party insuring has no interest in the property insured. It had been a question whether such policies were lawful by the common law. The practice had greatly increased, insomuch that wager policies had become a common thing. It was with a view to suppress these that the statute of the nineteenth of George the Second, chapter thirty-seventh, was passed. The object of that statute was good; it was remedial in its character; it went to suppress a public evil; but, while it prohibited wager policies in all other cases, it contained an express exception in favor of those made on vessels trading to Spain and Portugal."
After commenting on this act of the British Parliament, he quotes the words of Blackstone, who, after stating the nature of these smuggling policies, and dwelling upon their immorality and pernicious tendency, refers to the law above mentioned, which enacts "that they shall be totally null and void, except as to policies on privateers in the Spanish and Portuguese trade, for reasons sufficiently obvious." (2 Blackstone, ch. xxx., p. 4, § 1.) On this statement of Blackstone Mr. Adams remarks:
"It is an old maxim of the schools that frauds are always concealed under generalities. What were these obvious reasons? Why were they concealed? It is known to the committee that, in the celebrated controversy of the man in the mask,—I mean Junius with Blackstone,—he said, that for the defence of law, of justice, and of truth, let any man consult the work of that great judge, his Commentaries upon the laws of England; but, if a man wanted to cheat his neighbor out of his estate, he should consult the doctor himself. I go a little further than Junius, although I do it with great reluctance, for I hold the book to be one of the best books in the world. I say that the observation of Junius applies to the book as much as to the judge, when, from reasons like those with which scoundrels cover their consciences, that book evades telling why the exception was made in regard to Spain and Portugal, and what those reasons were which the judge declares to be 'sufficiently obvious.'
"This exception of the British law was infectious; it spread into France, whose government adopted the same provision by way of reprisal."
Mr. Adams then read from Emerigon, the principal authority of French lawyers on insurance, who denies the principles of the English statute; and M. Pothier, not a mere lawyer, but a philosopher and moralist, who protests against this doctrine, and appeals to the eternal laws of morality. He then cites the second volume Term Reports, p. 164, in which Judge Buller states, "I have heard Lord Mansfield say that the reason of that allowance was to favor the smuggling of bullion from those countries." On which Mr. Adams remarks:
"This is the sum of the whole matter. Judge Buller heard Lord Mansfield say that the object of the exception in regard to Spain and Portugal was to encourage—yes, to encourage—the smuggling trade. The object was that smugglers should not only escape the effect of their villany, but should be actually encouraged by government in its perpetration.
"I think I have now established the position which I assumed, that the lawfulness of violating the revenue laws of other nations is a principle of English law,—a principle sanctioned by the Legislature and the judicial courts of Great Britain,—but one which the best elementary writers, proceeding on the great and eternal principles of morality, have condemned as a false principle; and I have thought it necessary to do this with a view to trace these frauds upon our revenue, committed by British subjects, to what I believe to be their original source in the false morality in the English Parliament and English judges. What is the natural effect of the promulgation of such principles by such authority? What can it be but to encourage frauds on the revenue of other nations? When a principle like this goes out, sanctioned with the legislative authority, it will have its effect on the nation.
"'Quid leges sine moribus.' The whole moral principle of a nation is contaminated by the legislative authorization and judicial sanction of a practice dishonest in itself, which necessarily includes not merely a permission, but a stimulant, to perjury. If an English merchant, subscribing to this principle, goes to establish himself in a foreign country, he goes as an enemy, warranted, by the sanction of his own courts and Parliament, to do anything that can defraud its revenue. Perhaps this may be one of the causes of the vulgar saying,—which all must have heard, but which, thank God, I still hope is not warranted by the practice of the native merchants of our country,—that custom-house oaths have no validity. There is a feeling, but too prevalent, which distinguishes between custom-house oaths and other oaths. It is obvious that smuggling can not be carried on to any extent without the commission of perjury. There must be false swearing; and it is that false swearing which the British laws have sanctioned. None of this bullion, of which Justice Buller speaks, could be smuggled out of Spain and Portugal without false oaths; and you will find, from the details of a case which I shall presently call to your attention, that false swearing is at the bottom of the frauds which this bill seeks to correct—frauds in consequence of which seven eighths of all the woollens imported into New York escaped the payment of the duty charged by law. These people do not hold themselves bound to respect our revenue laws, and thus proceed without scruples to the perpetration of perjury in order to carry on with success the evasion of them."