With great and sincere esteem, I have the honor to be, Dear Sir, &c.
B. FRANKLIN.
TO THE GOVERNORS OF MASSACHUSETTS, RHODE ISLAND, NEW YORK, DELAWARE, MARYLAND, AND NORTH CAROLINA.
Philadelphia, July 27th, 1781.
Sir,
I find upon examination, that the recommendation of Congress of the 3d of February last, for laying an impost of five per cent on goods imported, and a like impost of five per cent on prizes and prize goods, has not been complied with by your State.
The object which Congress had in view when they issued this recommendation was of the utmost importance, and every day gives it an additional weight and magnitude. Whether these States are able to support the annual expenses of the war by their annual revenue, and whether it would be prudent and wise to draw forth such revenue, are questions which may hereafter be agitated, considered, and answered. For the present it is sufficient to observe, that no methods have hitherto been adopted to produce a revenue by any means adequate to the current expenses. The public debt, therefore, is large and increasing. The faith of the United States is pledged to the public creditors. At every new loan it must be pledged anew, and an appeal is now made to the States individually, to support the public faith so solemnly pledged. If they do, it is possible that public credit may be restored, if not our enemies will draw from thence strong arguments in favor of what they have so often asserted, that we are unworthy of confidence, that our union is a rope of sand, that the people are weary of Congress, and that the respective States are determined to reject its authority. I fear that a mere verbal contradiction of these assertions will have but little effect. No words will induce men to risk their property upon the security of a nominal union. Your Excellency will be able at once to determine whether that union is more than nominal, in which any part shall refuse to be bound for the debts of the whole, or to contribute to the general defence. I must be permitted, however, to observe, that in matters of public credit long delay is equivalent to direct refusal.
Despotic governments are in war superior to others by the union of efforts, the secrecy of operations, and the rapidity with which every wheel may be moved by one sovereign will. This superiority, however, is amply compensated to free governments by the ardent attachment of their citizens, and the general confidence, which enables them to make exertions beyond their force, and expend in one year the revenues of many. A single view of our enemy, in the unequal contest she now carries on, will demonstrate these advantages more clearly than any arguments. The credit of Great Britain is not only her chief, but it is almost her only support. Inferior in everything else to the associates combined against her, she still makes head everywhere, and balances the opposition through the four quarters of the globe. While we feel the force of these last struggling of her ambition, we must admire the source from whence they flow. Admiring, we should endeavor to imitate, and in order to succeed, we need only to make the attempt. There was a time when public confidence was higher in America than in any other country. Hence the existence of that paper, which bore us through the conflict of five years' hostility. In the moment when no others dared oppose Great Britain in her career towards universal empire, we met her ambition with our fortitude, encountered her tyranny with our virtue, and opposed her credit with our own. We may perceive what our credit would have done, had it been supported by revenue, from what it has already effected without that support. And we have no reason to doubt but that it may be restored, when we reflect on the fate which paper currencies have formerly sustained. The appeal, as I have already had the honor to observe, is made by Congress to the several States. Some of them have answered by passing the laws required, others are silent. Whence this silence proceeds, I confess myself at a loss to determine. Some reasons, indeed, I have heard assigned by individuals in conversation, but I cannot conceive that they should have weighed with the Legislatures. Indeed I can hardly conceive how any reasons can have weighed against a matter of such importance as the keeping public faith inviolate.
I have heard it said, that commerce will not bear a five per cent duty. Those who make such assertions must be very little acquainted with the subject. The articles of commerce are either such as people want, or such as they do not want. If they be such as people want, they must be purchased at the price for which they can be had; and the duty being on all, gives to no seller any advantage over another. If, on the contrary, the article be such as people do not want, they must either increase their industry so as to afford the use of it with the duty, or else they must dispense with that use. In the former case, the commerce is just where it was, and in the latter case the people consume less of foreign superfluities, which certainty is a public benefit.[38]
I have also heard it said, that the duty should be carried to the account of the State where it is levied. What can be the object of those, who contend for this point, I know not. If there are doubts as to the justice of Congress, that body should not have been intrusted with the power of apportioning quotas on the several States. If, on the contrary, those who make this proposition, expect that the commercial States, by carrying the five per cent duty to their private account, can derive from their neighbors, the idea is as fallacious as it is unjust. The equity of Congress would lead them to relax so much in the quotas as would render the contribution of the States proportionate, or if that could not be done, the suffering State would be induced to carry on its commerce. Thus the end would be defeated, as indeed it ought; for surely the advantage derived by the mercantile States, as a mercantile profit, is sufficient without exacting a revenue in addition to it. Articles imported into the country are consumed in the country. If each pays a duty, that duty will be paid by all. The tax will fall equally on all, and therefore ought, in justice, to be carried to the general account.