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Mr. MORRILL. I withdraw my amendment ing product in my own district. Last year, acto the amendment, and in order to accommodate cording to the accounts that I have, my county all parties, as there seems to be a disposition to raised and sold over two million dollars' worth make a little change in this provision, 1 move to of tobacco. Connecticut raises a very large quanamend the amendment of ihe gentleman from lity of tobacco in proportion to her other cropsKentucky by inserting fifteen cents instead of much larger than her wheat crop. five.

The gentleman must see that the system of taxThe amendment to the amendment was agreed | ation all over the world reduces the taxes to the tomayes 47, noes 46.

fewest possible number of articles, and those genMr. MALLORY's amendment, as amended, was eraily articles of luxury. England now raises then adopted.

her vast revenue, not from five or six hundred Mr. MALLORY. I move an amendment that articles of taxation, but from seventy or eighty. the lux on cigars be reduced from fifty to forty Is tobacco heavily taxed by this bill. The highcenis per pound. I have no hope, Mr. Chair- est rate is sixty cents a pound. The tax on tomall, that this amendment will prevail, because bacco in England is $2 25 per pound. The tax I know it is the purpose of members to load this dow on cigars ranges from eighi dollars per thouproduct of our country with the very heaviest tax sand, which is the lowest practical amount, up to ihat they think ii cau possibly bear. I believe | forly dollars per thousand. This bill reduces the that they have gone so far toward the attainment tax to ten dollars per thousand on the average. of this object as to have now louded it with a la x To be sure, it includes a certain class of cigars that it cannot bear. I believe that the product not included in our present tax; that is, Havana will break down under the tax. If I thought it cigars, the foreign article; for we were of opinion possible to achieve my purpose I would have that, without some such system as this, the frauds moved an amendment reducing the tux on mun. which are now practiced to such an extent as alufactured tobacco in every form in which it is musi to render the tax a nullity, could not well spoken of in this bill, because my conviction is be avoided. We have, therefore, reduced very fixed-and I believe the operation of the law will materially the tax upon cigars from its present prove the correctness of that view—that the rate amount; yel we believe that this reduced rale of of luxation now imposed on tobacco in its various laxation will produce three or four times the forms will result in diminishing ils production to amount of our present revenue from this source. an extent so large as to lessen the revenue mate- We do not see how it will be possible to escape rially that would be derived from a lax on this the payment of this taxation, where no frauds in product at a much lower rate than the committee counting can occur, where the question is simply proposes to impose upon it. I merely protest one of weight. Under the present law, large quannow against the system which, it seems, is to be lilies of cigars manufactured in this country are fixed on this country, of taxing whisky and to- passed off as Havana cigars. bacco, the two great products of the growing and We believe, therefore, that the system proposed flourishing Wesl, at a rate greater than the prod- || in this bill will produce, not perhaps as much revucis of any other section of the Union are taxed. enue as the present system would if it could be

I know that when an individual or country is enforced, but vastly more than we can ever realsupposed to be able to bear a good deal, a good ize under the present system. We believe that deulis apt to be imposed upon him or it. Gen. we have reduced the rate to the lowest figure postiemen stem to rely on the teruility of that great || sible, if we are to raise sufficient revenue lo carry Western region, on the industry and energy of on this war and pay the interest on the public its people, as being sufficient to redeem them from debi. the consequences of any amount of taxation in- I am sure that the gentleman from Kentucky is flicted on them by this bill. But I suggest to willing that the products of his section shall pay gentlemen that it is the last feather that breaks their full proportion of taxation. I do not object ihe camel's back, and that they may, in this prac- that my constituents, largely engaged in tobacco tice, go so far as lo render patience no longer a raising, should bear their full proportion, nor do I virtue on our part. The time will come when believe that they will complain or think themthe strength of that region will give it the pre- || selves unjustly burdened because many of the ponderance in the Falls of Congress. And l'ad- States raise no tobacco at all. nionish gentlemen who are now so busy in inflice- Mr. MALLORY. The distinguished chairman ing on us every species of burden and oppression, of the Committee of Ways and Means, in replyto beware of ihe day when our strength will en- ing to what I had the rashness to say a few moable us to turn upon them and revenge ourselves ments ago, spoke of Jove giving his nod. I do for the injury which they are now inflicting upon not suppose the gentleman could have alluded to us. I had rather thatthis system were abandoned. me when he made that remark, He knows that I had rather that fuirness, equality, and justice he is regarded by the House and the country as should characterize our legislation, so that that The Jupiter Tonans of this body. The time was people, when they allain this degree of power when lie which they will reach, will look upon you with “ Shook his ambrosial curls and gave his nod, kindness and regard, will have nothing to retort The stamp of late, the sanction of a god.” upon you, will have no injury to redress, no He did have an influence in this House, and it rankling wrongs to remember. I admonish the trembled before him. But I must say that I think gentleman from Pennsylvania (Mr.Stevens) that that time is passing away. I observed the other the time will come when the great West, having day an intimation from the distinguished gentlelegislative power in these Halls, will perhaps lay man himself which showed that the power of Jove a stronger hand upon iron than he is disposed to was diminishing. I saw, too, that his nod had have done, or upon coal, or upon petroleum, al- ceased to produce its accustomed effect in this though we are using the latter so much in the Ilouse when the gold bill failed here so remarkWest that I do not think we should punish you ably. If, therefore, the appellation used by the as much as ourselves by taxing it heavily. genileman was intended for anybody, it must have

Bui, Mr. Chuirman, I do not wish that this been for himself. It must have been one of those discrimination shall be persevered in. I have no lessons which, I have no doubt, the gentleman hope, however, of seeing it abandoned. But I olien gives himself to correct his ways, if those must be permitted, nevertheless, to enter my sol

ways need correction. emn protest against it here.

Mr. Chairman, the gentleman from Pennsyl-
Mr. STEVENS. Mr. Chairman, I am very vania says that the true theory of taxation is to
sorry that my friend from Kentucky has got into impose laxes upon one or two articles for the pur-
the ininulory humor this morning. It always pose of raising revenue.
makes me feel bad to licar threats.

Mr. STEVENS. I did not say that. I said
Mr. MALLORY. I beg to correct the gentle- upon the sewest number.
man. I am in a monitory humor, not a minatory Mr. MALLORY. Well, the fewest number.
My remarks were simply monitory.

I take issue with the distinguished gentleman on Mr. STEVENS. Well, sir, the gentleman's that subject. The great purpose of taxation words are sometimes strong. When Jove nodded should be to make it equal and uniform; to diseverything trembled; but lesser deities had to tribute it as largely as possible throughout the strike several times.

whole land, and make it operate as far as possiBut, sir, the gentleman is mistaken in suppos- ble upon every individual in proportion to his ing that we are over-laxing the products of the ability. That I regard as the true theory of the West. Tobacco is becoming a product of every Government. For his protection by the Governportion of our country. It is a large and increas- ment, he must suppori the Government by his

contribution in the shape of taxes. That is my theory of taxation.

I never go to England, sir, to borrow philosophy on this subject. If I did, I would fail to impose upon any production of this kind any tax at all. That is the English system. Tobacco is taxed enormously in England, some $2 45 per pound; but the gentleman must recollect that iobacco is not raised in England. Spirits and wines in all forms are taxed high in England, but they are not produced there. There is a bigli taxupon whisky, brandy, and wines. They contribute for that reason largely to the revenue of the Gove ernment. Mr. STEVENS. Does the gentleman


that they do not produce whisky in England?

Mr. MALLORY. They do to a limited extent. I suggest to the genileman from Pennsylvania that England does not produce to a sufficient extent the material out of which whisky is made, for the population cannot spare it, as they need it for food.

Mr. STEVENS. The excise duty upon the domestic article there is very high now.

Mr. MALLORY. That results from the enormous excise imposed upon smull quantities.

The gentleman supposes that Pennsylvania will become a large producer of tobacco. Hes says that it is a large producer now. Let me say to him that that will not continue long, because everybody knows that tobacco is an exhaustive crop. You cannot continue to raise tobacco in a region where cereals are valuable. When labor in his State becomes dearer and land higher in price, the production of tobacco will be abandoned. It will only be produced where the land is fertile and where the deterioration of it is not so objectionable as it is in Pennsylvania.

(Here the hammer fell.]

Mr. L. MYERS. Mi. Chairman, I am opposed to the amendment offered by the gentleman from New York, (Mr. Brooks,] but in reality rise more for the purpose of asking the Committee of Ways and Means a question upon a subject of great interest to the people, before we have passed by the section altogether. I am surprised ihat the matter has not been mentioned before.

There is a general belief that the interests of the Government would be best subserved in this particular by levying a tax upon tobacco in the leaf. Such a tax would in a great measure avoid the large frauds on the revenue, which it is on all hands admitted have been practiced under the present law, and which the bill before us evidently contemplates will again be attemptedfrauds which injure the honest manufacturer as well as the Government. It would obviate the need of passing a multiplicity of taxes on tobacco in its various forms, and a multiplicity of regulations which the assessor and inspector will find it difficult to carry out successfully; and still further, it would enable us to repeal a section which imposes upon cigar makers an obligation not required of any other class of employés. I allude to the provision requiring cigar makers to return monthly, upon oath and under severe penalties, an account of all cigars made by them as employés or otherwise. It is contended that this business cannot be assimilated to any other, and that to prevent fraud the paragraph must stand. A tax upon the raw tobacco will certainly enable us to do away with it, and as I believe, its assessment, with ihe establishment of bonded warehouses to receive this product, and an allowance of a drawback equivalent to the tax upon all leaf tobacco exported, will add to the revenue. I now ask the gentleman from Vermont (Mr. MORALL] why the many recommendations for such a lux have passed by unheeded.

Mr. BROOKS. I withdraw my amendment.

Mr. MALLORY. I renew it. The gentleman from Pennsylvania inquires why the Committee of Ways and Means have not responded to the call of the country, which he seems to regard as almost unanimous, to lay the tobacco tax on the leaf. I will state to the gentleman, in the first place, that we were not so well satisfied as he is ihat that call is unanimous. Nor do I believe it is at all extensive when you compare it with the call made upon us by the country not to tax the leaf. The Committee of Ways and Means in coming to the decision to which they arrived, consulted the purchasers of tobacco, the manufacturers of tobacco, and the inspectors and collectors


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of the Government all over the country; and I formerly assumed even when the market was over- ing, as I do, that it will be very mischievous, I
will state as the result of that inquiry that the im- burdened, and thus relieved the producer from hope that it will not be adopted.
pression was made upon the committee that it the accumulation of stock on his hands.

The CHAIRMAN. No debate is in order.
was impossible so to iinpose a tax upon the leaf I maintain, therefore, not that you should tax All debate upon this paragraph has been closed
as to derive as much revenue to the Government the producer-by no means—but, as proposed in by the order of the House.
as would be derived by laying the lax upon the one of the bills offered in the House and referred Mr. MORRILL. With all due deference to the
manufactured article.

to the Committee of Ways and Means, that you Chair, I think that this amendment comes in at a Mr. L. MYERS. Of course in case of expor- should take the ordinary channels of trade, and point subsequent to that paragraph upon which tation there would be a drawback allowed equiv- collect the tax after the article passes from the debate was closed. It is upon an entirely differalent to the amount of the tax.

producer's hands for consumption, placing it in ent subject-is an independent proposition, and Mr. MALLORY. Even allowing a drawback, || warehouses if necessary in the mean time. In it is therefore in order to debate it. the difficulty of going to the producer of tobacco, that way you do not count the number of plants The CHAIRMAN. The amendment, if of counting the number of plants, of inquiring, raised by the producer, nor require permits to adopted, would form part of the paragraph. when cut, whether the producer had disposed of produce, nor in any way embarrass production; Mr. MORRILL. I then hold that it is not in any of it in order to evade the tax, the following you collect no tax from the producer; you simply order, not being germane to the paragraph. the tobacco to the stripping-house and the press- say that after it gets into the market, and before The CHAIRMAN. That the Chair cannot house, seemed so insuperable to the committee consumption, the tax shall then be paid before tell, because he does not know what is in the secthat they abandoned the idea of taxing in the leaf. manufacture, thus making it uniform on all manu- tion of the original law. The principle of the bill now before the House, || facturers.

Mr. MORRILL. The amendment of the genand which the committee wished to follow and Having said so much by way of reply to the tleman from Pennsylvania does not apply to any. preserve, as far as they could, intact, was to place || gentleman from Kentucky, I now, at the request thing in the paragraph. ihe lax as far from the producer of every article of my colleague on the Committee of Ways and The CHAIRMAN. The Chair cannot deas possible, and in no instance, if it could be pre- Means, [Mr. MORRILL,] move that the committee termine that, because the Chair does not know vented with anything like justice to the revenue, do now rise for the purpose of closing debate on what is in the original section. to impose a tax to be paid by the producer before this paragraph.

Mr. STEVENS. I withdraw my amendment. the article is exposed in the market. Various The motion was agreed to.

Mr. THAYER. I move to amend by striking means were suggested to get over this difficulıy, So the committee rose; and the Speaker having out the following: but none of them were deemed by the Committee resumed the chair, Mr. POMEROY reported that By inserting in the last paragraph relating to cigars. after of Ways and Means practicable. The committee the Committee of the Whole on the state of the the words “imprisonment not exceeding thirty days," the were of the opinion that, if the planter were com- Union had, according to order, had under con

words, - and any person furnished with such permit may

apply to the assistant assessor or inspector of the district pelled from his own pocket to pay the lax upon sideration the state of the Union generally, and

to have any cigars of their own manuiaciure weighed; and ihe tobacco before he was allowed to expose it for particularly the tax bill, and had come to no res- on receiving a certificate of the weight, for which such fee sale and consumption in market, the annoyance, olution thereon.

as may be prescribed by the Comin issioner of Internal trouble, and vexation would be so great as to com- Mr. MORRILL moved that all debate in Com- Revenue shall be paid by the owner thereof, may sell and

deliver such cigars to any purchaser, in the presence of pel bim to abandon the cultivation and engage in millee of the Whole on the state of the Union on

said assistant assessor or inspector, in bulk or unpacked, some other of the profitable pursuits opened to the pending paragraph of the tax bill be closed without payinent of the duty. A copy of the certificate farmers and planters. They believed that a tax in three minutes after the committee should re- shall be retained by the assistant assessor, and an inspector

shall return the saine to the assistant assessor of the dison the leaf would lessen the production of the sume the consideration of the same.

trict. The purchaser shall pack such cigars in boxes, and article in the country, and in that way not only The motion was agreed to.

have the same inspected and marked or stamped according injure the general prosperity of the country, but Mr. MORRILL moved that the rules be sus- to the provisions of this act, and shall make a return of the dininish the revenue of the Government expected || pended, and that the House resolve itself into

same as inspected to the assistant assessor of the district, to be derived from this article. These, so far as

and, unless removed to a bonded warellouse, shall pay tlie Committee of the Whole on the state of the Union.

duties on such cigars within five days aller purchasing I know, were the reasons which compelled the The motion was agreed to.

them, and before the same have been removed from the committee to take one of the wisest steps the com- So the rules were suspended; and the House store or building of such purchaser or from his possession; mittee did lake in respect to the tax on tobacco, || accordingly resolved itself into Committee of the

and any such purchaser who shall neglect for more than and that was not to tax in the leaf.

five days to pack and have such cigars duly inspected, and Whole on the state of the Union, (Mr. POMEROY pay the duties thereon according to this act, or who shall Mr. KASSON. Before submitting the motion || in the chair,) and resumed the consideration of purchase any cigars from any person not holding sucli perthat the committee rise, since this proposition of the tax bill.

init, the duties thereon not having been paid, shall be taxing the leaf has been raised, I desire briefly Mr. MORRILL. Mr. Chairman, I desire to

deemned guilty of a misdemeanor, and be tived not exceedto state the converse of the views now presented say a word or two in relation to the subject which

ing five hundred dollars, and be imprisoned not exceeding

six months, at the discretion of the court, and the cigars by the gentleman from Kentucky. I concur in has just been discussed by the gentleman from shall be forfeited and sold, one fourth for the benefit of the the action of the Committee of Ways and Means

Kentucky [Mr. MALLORY) and the gentleman informer, one fourth for the officer who seized or had them not at this time to amend the law by transferring from lowa, (Mr. Kasson,] the expediency of tax

condemned, and one half shall be paid to the Government." the tax to the article in the leaf; but I am equally | ing leaf tobacco on hand. I know that the diffi

There is a very good reason for this, as the unwilling that my colleague upon the committee

culties now are very great, and that such a pro- || Treasury would find, but as the committee has [Mr. MALLORY) should present the other view vision could not be carried into effect without cut off debate, I cannot state it. and send it forth to the country against any future | imposing upon the country a vast amount of ex

The amendment was rejected. change by the Committee of Ways and Means | penditure, for we should have to establish ware

Mr. THAYER. I move to amend by insertupon this question without having an opportunity | houses and appoint inspectors in almost every

ing in line five hundred and sixty-nine, after to state briedy the advantage of the other system. town and county in the country. Such a system

the word “them," the words “ to the collector And let me therefore say to him, and to the com- as that over our country would involve å vast

of the district wherein they were manufactured," mittee, that the burden upon the producer does amount of expense, for this article is not only

so that it will read, "and shall make a return of not consist in the stage belween consumption and cultivated in Pennsylvania and Connecticut, but the same, as inspected, to the assistant assessor production where you put the tax, but in the there is not a single Stale in the Union where it

of the district; and, unless removed to a bonded amount of the lax imposed, and its conformity | is not now cultivated, and cultivated profitably.

warehouse, shall pay the duties on such cigara or non-conformity with the customs and usages A Member. Do they cultivate it in Vermont? | within five days after purchasing them, to the colof commerce. If the consumer gets his article at Mr. MORRILL. Yes, even in Vermont. lector of the district wherein they were manufacso much cost, whether smoking or chewing to- Mr. Chairman, there is another great objection cured." bacco, or cigars, it is immalerial to him in what lo the system which will be found in practice. In

The amendment was adopted. stage between the producer and the consumer che a country like England, where all of this article is Mr. STEVENS. I now renew my amendment: tax is imposed. The consumer will buy if the imported, they can, of course, levy any amount On vinegar, or acetic acid, there shall be levied and pald article does not cost too much. If it does cost too of duty on the article; but in our own country, a tax of six cents per gallon : Provided, That no duty sliall much the consumer will stop or diminish the con- | where every one may produce it if he pleases,

be levied on the material from which the vinegar shall be

inade. sumption. I am anxious, therefore, that the plant- || if he merely owns a garden patch, it would be ers should further consider this question against almost impossible to make every individual in the

The CHAIRMAN. Debate has been exhaustanother meeting of Congress; and they may pos- country render an accurate account of all that he ed on the pending paragraph. sibly find that by the course we are now pursuing | produces; and if you interfere with this article by

Mr. STEVENS. Then I move it as a new we more endanger the amount of consumption, compelling the producer to carry this produce from paragraph. and the market they now have for their tobncco, the place of production to some place where it

Mr. MALLORY. I move to amend the amendthan by the course proposed by the friends of musi be warehoused and inspected, in my judg.

ment by inserting in the proviso " and vinegar ta xation on the leaf. "Transfer the tax to the leaf

ment you will cripple the production of it. made from apples and grapes." I want to exwithout interference with the ordinary course of (Here the hammer fell, ihe time allowed for de- || clude that description of vinegar from taxation trade and you will find the market more uniform. bale having expired.]

altogether. The large manufacturers who furnish a reliable Mr. Mallory's amendment was disagreed to.

The amendment to the amendment was rejected. market to the producer, often accumulating large Mr. STEVENS. I now renew my amendment

Mr. HOOPER. I move to amend the amend. slocks, are restored, instead of being nearly ruined to insert after line five hundred and eighty-one, at

ment of the gentleman from Pennsylvania by as now, and driven from the market by frauduthe close of this paragraph, the following:

striking out the first word. lent dealers who evade the law without benefit either to the producer or the Government. You On vinegar, or acetic acid, there shall be levied and paid

The CHAIRMAN. No debate is in order on a tax of six cents per gallon: Prorided, That no duiy shall

the amendment. impose the tax solely upon the manufactured be levied on the material from which the vinegar shall be Mr. STEVENS. Under the ruling of the article, subject to all the frauds that characterize

Chair, which I dare say is right, I am disposed the collection of that tax at this day, and you Mr. MORRILL. I am aware that that amend- to withdraw the amendment. practically prohibit the large manufacturers from ment in some form has received the sanction of The Clerk read the next paragraph of the bill. iho purchase of the large amounts which they ll the Committee of Ways and Means, but believ- Mr. STEVENS. I now renew my amende

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ment, to insert it at the commencement of the Clerk's desk; otherwise I shall offer it as an in- may purchase from the distiller a large amount of
paragraph. I offer it for this reason: a large dependent proposition. It covers, I think, the whisky, alleging that it is for the purpose of mak-
quantity of vinegar is made out of what is called whole ground of what was originally intended. I ing vinegar, and he will pay no tax upon it. If,
“ singlings,” a coarse kind of distillation, which do not know whether my colleague's amendment then, instead of putting it into the market as vin-
is used for nothing else. Upon that article, which will be adopted; but if it should be I desire that egar, he puts it there as whisky, nobody pays a
is afterward converted into vinegar, a duty of two my proposition shall be incorporated with it. tax upon it. It seems to me that there is a diffi-
dollars per gallon is levied, calling it " whisky." My collengue's amendment proposes to tax culty which does open the door to fraud wider
When it is converted into vinegar, it sells at thirty- || this vinegar directly. Probably it is the fairest than the gentleman from Vermont has indicated.
three cents a gallon. Hence any one can see that way. Then the gentleman adds a proviso that the Mr. STEVENS. In order to avoid that dif-
in large distilleries no vinegar can be possibly | article from which the vinegar is made shall not ficulty I will withdraw my amendment. Instead
made. It is to prevent the consequent enormous be taxed. But, sir, there is a new process by of saying the materials out of which it is made
waste and breaking up of business that I have which vinegar is manufactured from corn; and in I will say "singlings.'
offered my amendment. The gentleman from view of this I think that the amendment would The question recurred on Mr. Stevens's
Vermont (Mr. MORRILL) thinks it would open leave a loophole for misconstruction hereafter. amendment.
the door for fraud. I cannot see that. I cannot The article from which the vinegar is made, the Mr. MORRILL demanded tellers.
see how that article can be used in any other way corn, would not be taxed; but the Commissioner Tellers were ordered; and Messrs. STEVENS
than in the manufacture of vinegar. Hence it is of Internal Reveuue would in probability de- and MORRILL were appointed.
that I have proposed to tax vinegar, but not to cide that under the law the fluid generated in the The committee divided; and the tellers reported
tax the second time the material out of which it process of distillation in making this vinegar -ayes 47, noes 49.
is manufactured.

would be liable to be taxed. In the process of So the amendment was rejected.
Mr. MORRILL. The gentleman from Penn- what has been termed by the Commissioner dis- The Clerk read, as follows:
sylvania says he cannot see how frauds will be tillation, there is produced what he calls a "low That section ninety-six be amended by inserting, after
practiced under the proposed amendment which wine,” which has scarcely an appreciable rela- the words "concentrated milk," the words " cider, sugar,
he has offered. I will endeavor to show to the com- tion to whisky--not further certainly than one

and molasses, made from other articles than the sugar

mittee how they will be practiced, even though and a half or iwo to fifty-five. It is an article
the gentleman from Pennsylvania may fail to see useless for any other purpose, and which in re-

The ninety-sixth section is as follows: it. Under the amendment which he proposes the ality should not be taxed. But by a previous

Sec. 96. And be it further enacted, That newspapers,

boards, shingles, laths, and other luinber, lives, hoops, material from which the vinegar is made is not section of this bill we have provided that the

shooks, headings, and timber partially wrought and unonto be taxed. Of course, any person who holds a duties on it “shall be collected on the basis of the

ished for chairs, tubs, pails, pubs, spokes, felloes, snaths, quantity of singlings has only to say, whether actual proof." I agree with my colleague that lases, shovel and fork handles, match-wood, umbrella truly or falsely, that he holds it for the purpose this is really in no degree a spirit or whisky which

stretchers, alcohol inade or manufactured of spirits or ma

terials upou which the duties imposed by law shall have of manufacturing vinegar, which will leave it ex- should be taxed. I hope, therefore, that his

been paid, bone dust, plaster or gypsum, malt, burning fluid, empt from taxation. It travels free, and cannot amendment will prevail if it includes in it what printers' ink, flax prepared for textile or felting purposes afterward be traced or followed. I think that, I suppose he meant, that neither the article from until actually woven, marble and slate or other building under these circumstances, we should have a great which this vinegar is made nor the fluid produced

stones in block, rough and unwrouglit, charcoal, coke, all

flour and meal made from grain, bread, and broadstuffs, many vinegar manufacturers. The Committee in the process of manufacture shall be laxed.

butter, cheese, concentrated milk, paratıne, whale and fish of Ways and Means, in this bill, have already Mr. MORRILL. I desire to ask the gentleman oil, value of the bullion used in the manufacture of silver proposed that these singlings, if used for this pur- from Pennsylvania (Mr. L. Myers] whether this ware, silver bullion rolled or prepared for platers' tise expose, shall be subject to duty only according to article could not be obtained from distilleries at

clusively, materials prepared for ine inanufacture of hoop

skirts exclusively and unfit for other use, (such as cut tapes their actual proof, instead of paying a tax of two this low proof, then mixed with other liquor of and small wares for joining noopy together,) shall be, and dollars per gallon; that is to say, it the singlings very high proof, and sold as whisky, without hav- hereby are, exempt from duty. And also all goods, wares, contain only thirty or forty per cent. of whisky, | ing paid any duty at all on the low proof.

and merchandise, and articles made or manufactured from instead of the usual proof, they shall be subject Mr. L. MYERS. In reply to the gentleman I

materials which have been subj ct 10 and upon which into a pro rala duty, and not a duty of two dollars would state that this is in reality not spirits. It

ternal duties have been actually paid, or materials im.

ported upon which duties have been paid or upon wlicii no per gallon. That is all the relief that the Com- || is, in fact, a different article-more like rain water duties have been imposed by law, where the increased mittee of Ways and Means at first thought it wise than spirits. True, it was adjudged by the Com- value of such goods, wares, or merchandisere, and articles to give to this article; and all that I think it is now missioner of Internal Revenue to be a distillation,

so made or manufactured, shall not exceed the amount of

five per cent, ad valorem, shall be, and hereby arc, exempt safe to give.

but it is not spirits within the intent of the term, fron duty. Now, let me state how fraud may be practiced || is only produced in the process of this manufac

Mr. HOOPER. I move to strike out " in another way in this article. The committee ture, and it is useless to suppose could be ob

sugar will understand that it may be redistilled and made tained from distilleries and mixed with liquors of

and," and insert " cider vinegar, sugar, or.

The amendment was agreed to. into whisky. Parties may therefore hold it for the high proof. Such a course would not benefit the

Mr. HOLMAN. I move to add the following: very purpose of redistilling and making it into party taking it, for it is not proposed to exempt

That the Secretary of the Treasury is directed to refund whisky; while to the collector and assessor they inis fuid where not made in ihe manufacture of

to the persons entitled to receive the same the taxes which disavow or do not disclose any such purpose. vinegar, and the fraud would be detected and pun- have been collected from manufacturers of molasses from

Mr. PENDLETON. If it is redistilled, does ished. Beside this, if distilled further or mixed sorghun, under the act to which this is an annendmeut. it not pay the tax of two dollars?

with other distillations to make it spirits or wliisky Mr. Chairman, I understood the gentleman Mr. MORRILL. I conceive that, if parties | the tax upon it as such would have to be paid. I from Vermont (Mr. MORRILL) to say yesterday be thus enabled to hold it for such a purpose, only desire to prevent the misconstruction which that the principal object was to exempt molasses while disguising that purpose, we thereby lose might arise hereafter, should we pass the amend- made from sorghum, or imphee, and that that the control of it. Once beyond our control, it ment exempting the article from which vinegar was effected by the act of July, 1864. There is will be impossible to recover it. Under the pres- is made, and not the fluid produced in the manu- no question whatever but the gentleman from ent circumstances, we have the control of it. facture.

Vermont is correct. Section ninety-three proThen, again, Mr. Chairman, we are not only Mr. STEVENS. I see no objection, and will vides that molasses produced from sugar-cane, opening a wide door for the perpetration of frauds, accept the amendment of my colleague, (Mr. and not from sorghum or imphee, shall pay a but we are establishing a precedent, and a bad L. MYERS.)

fax of five cents per gallon. In spite of ihis If one manufacturer has the right to de- Mr. WILSON. Mr. Chairman, I desire to clear exception, the Commissioner of Internal mand that his whisky shall be exempted from state a difficulty which it seems to me may arise Revenue has construed the act, and imposed this tax, so has another. The vinegar manufacturer under this amendment. Suppose a person applies duty of five cents upon it, and it has been paid all has no more right to demand that this article shall to a distiller for the purchase of a large amount of over the country. These manufacturers have be free of tax ihan the maker of hats, who uses whisky which he alleges he intends to convert been required to pay it. Whatever the Commisa large quantity of alcohol or whisky for the pur- into vinegar. If the sale is made for the purpose sioner may suppose to be the law, undoubtedly pose of dissolving the gum employed in stiffen- of having that whisky converted into vinegar no will be carried out. In this there has been a clear ing hats. So I might specify a large number of tax is paid. When it has passed into the hands misapprehension of the law, and I think that the uses to which it is now devoted, and which equally of the purchaser and he sells it without convert- tax which has been collected ought to be refunded. demand relief, if any is given. I would, if it were ing it into vinegar, who is to pay the tax?

I know of no interest which under ihe circumpracticable, cheerfully adopt some means by Mr. L. MYERS. I will answer the gentleman. stances is entitled to so much encouragement. I which we could relieve all who use it for another He is wrong in his premises, and therefore wrong indorse the views expressed by the gentleman and a different manufacture. But, under the cir- in his conclusions.' It is not in this instance made from Vermont in reference to a tax upon maple cumstances, I do think that scarcely anything from whisky. It is made from corn and other sugar. It was most ridiculous to suggest it, and would open so wide a door to frauds and evasions articles,

I think that it was rather suggested for amuse of all kinds as the proposition of the gentleman Mr. WILSON. My question was more to ment than otherwise. Yet there is tenfold the from Pennsylvania.

the gentleman's colleague than to himself. The reason for the encouragement of the manufacture Mr. L. MYERS. Mr. Chairman, I do not amendment of the gentleman from Pennsylvania, of this article, which enters so largely into the sowish to oppose the amendment offered by my {Mr. STEVENS,] chairman of the Committee of cial and domestic necessities. It needs encouragedistinguished colleague; but I trust that he will Ways and Means, exempts all material used in ment, not by direct means, but by relieving it as accept the amendment wlich I shall send to the the manufacture of vinegar. The manufacturer !, far as muy be from the burdens of ta xation. I


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hope we will do what is right in this matter, and Your petitioners therefore pray your honorable bodies to Wisconsin (Mr. BROWN] to withdraw his amendrefund the money which has been improperly repeat the said section one hundred and three in suid act, ment until we can take a vote on the amend

and to make such other just and reasonable legislation in paid. lieu thereot' as will not operate as against them.

ment of the gentleman from Pennsylvania, (Mr. Mr. MORRILL, I think if we were to go into

And we will ever pray, &c.

Strouse,) and then I will offer a proposition rethe matter of executing the law, we should find plenty of business on our hands. In this case,

Mr. STROUSE. I do not know that I can add

pealing the duty on gross receipts altogether.

Mr. BROWN, of Wisconsin. I will withdraw as in all others, parties paying the tax have their anything to this truthful statement made by the

my amendment for that purpose. proper remedy. They can appeal from the decis- memorialists to the House and Senate. Although ion to the Commissioner of Internal Revenue. I the memorial I have had read comes to me from

The question now being on Mr. STROUSE's

amendment, trust the gentleman will not persist in his proposi- | the State of Pennsylvania, the statement of their

Mr. ANCONA demanded tellers. tion, and if he does that the committee will vote it complaints and grievances applies not only to

Tellers were ordered; and Messrs. MORRILL down. I think, however, that the parties to whom | Pennsylvania, but equally to the New York canal,

and STROUSE were appointed. the gentleman alludes, as well as all others, will

the Ohio river, the Northwest, and the East. be entirely content if the law shall be so fixed that

It will be observed that, under the present law,

The committee divided; and the tellers reported

mayes 67, noes 47. they shall not hereafter pay a tax upon this article. the captain, the owner, or the contractor of the

So the amendment was agreed to. The amendment was not agreed to.

boat, pays two and a half per cent. upon the gross Mr. PIKE. I now move to insert after the The Clerk read the following clause: earnings of the boat; that is the entire amount,

words " foreign ports," in line five hundred and That section one hundred and three be amended by innot excluding the amount paid out for tolls, for

ninety-eight, the words “nor upon the receipts serting, after the words as foreign port," the words “and the the hands, the bowsman, the steersman, the driver,

of any vessel subject to tonnage duty." The act amount actually paid for canai tolls by any person or com- and other employés. Thus he is laxed two and

of July last provided for a tax of two and a half pany owning or possessing or having the care or manage- a half per ceni. upon money which is not his earninout of my canal-boat or other vessel shall be deducted ings, but which is paid out for the purpose of | I am cold that the amendment of the gentleman

per cent. on ihe gross receipts of coasting vessels. from their gross receipts,” and by inserting, after the word " tare" wherever it occurs in the proviso lo said section, keeping the vessel in a condition to carry freight.

from Pennsylvania [Mr. STROUSE) embraces my the words " or freighit." Such an act is unjust, and I seek by my amend

amendment. I would like to have the clause read Mr. STROUSE. I move to amend that clause ment simply to have the tax paid upon the net

as it now stands. by striking, out all after the words “foreign port, earnings only of the boat.

The Clerk read the clause as amended. the words” down to and including the word

Mr. BROWN, of Wisconsin. I move a sub- Mr. PIKE. That does not answer my pur"freight,' "and inserting in lieu thereof the follow-stitute for the entire amendment; I move to amend

pose. My proposition is entirely different. The ing: section one hundred and three of the tax bill, to

proposition which has been adopted by the comAnd the amount actually paid for canal tolls, towing, and

which the pending clause refers, by striking out mitiee is to tax the net receipts. My proposiexpenses of running or sailing any canal-boat, barge, or

the words 's shall be subject to and pay a duty tion is to exempt coasting vessels altogether from othier vessel, shall be deducted from their gross receipts. of two and one half per cent. upon the gross re- the taxation of two and a half per cent., in order

I offer this amendment for the purpose of doing ceipts,”and insert in lieu thereofihe words,"shall to have the tax placed upon tonnage as a tonnage justice to a very meritorious class of our citizens. be subject to an income tax of five per cent. upon duty. The present tax of two and a half per I had the honor of introducing a resolution, which the nei receipts." I will explain my object. I

ceni, upon the earnings of coasting vessels does was referred to the Committee of Ways and have received numerous communications from the

not apply to foreign vessels. The provincial vesMeans, some time ago, embodying the principles owners of vessels in my own State—and I know sels which come into our markets with similar of this amendment. The committee reported to similar complaints are made elsewhere-that un

cargoes to our coasting vessels do not pay the some extent favorably upon it; but I believe they der the provision of the law by which you tax two and a half per cent., while our vessels running labored under some misapprehension in regard to the gross receipts of vessels, you frequently tax alongside of them have to pay the two and a half it. I cannot better or more forcibly bring this parties who really derive no profit from the use

per cent. On the river upon the banks of which matter to the attention of the committee than by of such vessels. The owner of a vessel may re- live a vessel casts off from the wharf on one having read one of the many memorials received ceive $10,000 a year from its use as his gross re- side of the river and carries her cargo to Boston by me from men engaged in boating upon our in- ceipts, and yet there may not be a single dollar of

or New York, and she pays a duty of two and a ternal waters, but received too late to have them profits. A case of that kind was related to me in referred to the Committee of Ways and Means. connection with this very provision.

half per cent. upon her freight; but a vessel which

casts off from the other side of the river does not The Clerk read the memorial, as follows:

Now, it seems to me that the taxation should be

pay it. It is consequently a bounty to provinTo the honorable the Senate and

upon the profils derived from the use of the vessel. cial vessels. A large amount of foreign shipping, House of Representatives of the United States : A man makes $10,000 during the summer season made so by transferring American shipping to the The undersigned owners or lessees of boats engaged in perhaps, but in the fall his vessel encounters a

amount of five hundred thousand tons, is, by the the business or carrying coal on the waters of the Schuyl

storm and is partially wrecked. The repairs will kill canal, in Pennsylvania, respectfully represent, that

act of July last, exempt from taxation. My propunder the provisions of section one hundred and three of

eat up all his profits, and it will be adopting a osition is that it shall pay a tonnage tax, and in the act of Congress, approved June 30, 1861, entitled "An new principle lo refuse to deduct such charges that way we shall obtain more revenue than under act to provide ways and means for the support of the Gov- and expenses. ernment, and for other purposes,” (the section referring to

the present system, and lay the tax upon foreign railroads, steamboats, ferry-boats, and bridges,) and ine

I will change the language of my amendment, as well as upon domestic tonnage. construction placed upon ine same by the Commissioner so as to make the words to be inserted read, Of course in this bill we cannot lay a tonnage of internal Revenue, the tax imposed upon them is onduiy "shall be subject to an income tax of two and a tax; but the Committee of Ways and Means proburdensome, aud in their view disproportionate with other

half per cent upon all net receipts under $3,000, subjects of laxation specified in said act, and operates

pose to bring in a bill to revise the tariff, and in greatly against the owners and lessees of canal-boais.

and five per cent. upon all net receipts over ihat way we can lay a tonnage tax. It is a matter Those engaged in the business of carrying in canal-boats, | $3,000.”

of considerable moment. A tonnage tax of twenty for hire, are subject to the following expenses :

The CHAIRMAN. The Chair will state to cents a ton would yield $3,500,000 annually. I First. The investment in boat, mules, and gearing. Second. An annual taxation of ten cents per ton on the ton

the gentleman that the amendment proposed by am not satisfied of the amount that this two and nage of the bont, payable at the custom-house in Philadel- him is not in order, as there are no such words a half per cent. tax will yield; but I have no idea phia. Third. The expense of keeping the boat in repair; as those he proposes to strike out.

that it will yield one third that amount, for, acthe feed and care of the mules or horses; the cost of load

Mr. BROWN, of Wisconsin. The amend- || cording to the decision of the Commissioner, this ing, unloading, and wharfage; in trips to New York, the cost of lowage and the expense and hire of workmen and boal

mentin the bill relates to section one hundred and result comes to pass: if a man owns the vessel men to run the boat. Fourth. The toll due the canal com- three of the tax bill, and I move an entire substi- || and cargo he pays no tonnage tax, because the pany. Filth. The general State and United States taxes. tute for that amendment.

Commissioner decides that ihe vessel does not Your petitioners represent that they do not object to a

Mr. MORRILL. Mr. Chairman, the amendjust and reasonable tax upon their earnings, but that under

earn money separately from the ownership, and the provisions of said act, and the construction thereof by

ment of the gentleman from Pennsylvania (Mr. that consequently she is not liable to be taxed. the Coininissioner of Internal Revenue, they are compelled STROUSE) and the amendment of the gentleman But if a man does not happen to own both vesto pay a tax of two and one half per cent. on the gross from Wisconsin (Mr. Brown) are both designed sel and cargo, and he sends his vessel abroad for amount which they collect, including all expenses of run

to reach ultimately the same purpose. We have hire, he is obliged to pay a tonnage tax. ning the boat, loading and unloading, the amount of lolls and towage.

already made the experimeni of trying to collect Mr. SPALDING.' Mr. Chairman, I am opYour petitioners further represent that such taxation op- some revenue upon the net receipts of canal-boats, posed to the amendment, and for this reason: an erates is such manner as to increase their lax in proportion steamboats, &c., and found it a failure; we could act was passed at the last session of Congress to the increase of their expenses, a principle of taxatiou which they believe to be unjust. Your petitioners make

not collect any considerable amount of revenue. regulating the admeasurement of vessels, and the the following estimate average of receipts and expenses of The law was, therefore, changed so as to impose effect of it has been that many of our screw-pron canal barge of from one hundred and seventy-five to one a tax of a smaller amount upon the gross receipts.

peller freight vessels on the lakes, that would hundred and eiglity tons for the year 1864:

The same principle was adopted in relation to Froin Pottsville to New York about eight trips can be

carry perhaps four hundred and fifty tons of made in one season.

railroads. 'The Committee of Ways and Means, freight, are made to measure eighteen hundred or For this the bontmen receive, per trip, about......$550 00 upon representations from various parts of the two thousand tons; and now, if this tax be laid Expenses of tolls, wliariage, labor, &c....... 485 00 country, thought that to include the tolls which on the tonnage, we shall be “jumping from the Making net, per trip..

65 00

these canal-boats actually pay was rather op- frying-pan into the fire.Which would inake for eight trips, gross..........

..4,400 00

pressive; and they have therefore proposed to I would not object to the tax on tonnage if the And for eight trips, net......

520 00 relieve them from that part of the tax, and they tonnage were made up under the old law. I beBut the internal revenue, two and a half per cent.

do not propose to go further and include the vari- lieve ihat the evils under which transportation on $4,400, is......

110 00

ous expenditures which the gentleman from Penn- companies labor are remedied by the amendment Which would make, for eight trips, net........ 8410 00 sylvania has included in his amendment. I think proposed by the gentleman from Pennsylvania,

the parties generally will be satisfied with the prop- || ( Mr. STROUSE,) and, as representing the commerThe cost of a canal barge of one hundred and seventy-five osition of the Committee of Ways and Means, and cial interests of the lakes, I am content with that. to one hundred and cighty tons is from $2,300 to $2,500. The above suin of $410 includes the personal services of

I hope that neither of the amendments will pre- Mr. BLAINE. I desire to add a single word, the owner or lessoe in running tbe boat.

vail. The wear and

Mr. Chairman, in support of the pending amendtear ef tile boat is not included in the above estimato.

Mr. PIKE. I appeal to the gentleman from ment, and I shall consume the bricf time allowed

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me in illustrating the point at issue by a practical | jection which the gentleman from Maine raises of the Comptroller of the Currency. One objec example, the details of which are personally as applied to coasting vessels, as the objection is to put a tax upon the circulation of the State known to me. raised by the vessel-owners on the lakes.

banks which have been converted into nationa During the past summer a ship-owner in my Mr. BLAINE withdrew his amendment. banks, or which have gone out of existence and districi a highly responsible and intelligent gen- The amendment of Mr. Pike was agreed to. their circulation assumed by the national banks tleman-chartered to Government a vessel of four The substitute of Mr. Brown, of Wisconsin, which shall be sufficient to put a stop to their cir hundred and fifty tons to carry a cargo of coal was adopted.

culation. The other, and I may say the principa from Philadelphia to New Orleans, for the gross Mr. WORTHINGTON. I move to amend object, is to bring about one system of currency sum of $6,000. For the vessel's disbursements by adding the following:

or bank paper throughout the country. So long in Philadelphia for painting, calking, repair of That section one hundred and three be amended by add

as State banks continue to issue circulation it is sails, manning, provisions, and port charges, the ing the following after the word " vehicle:"

intended to put a larger and disproportionate tax captain drew on the owners for $3,075 35. For Provided, That this section shall not apply to those teams,

upon it. Another object is to require national the vessel's disbursements in New Orleans for

wagons, and vehicles used in transporting logs for luinber
from the forests to the place or places of manufacture, or

banks which have assumed the circulation of State various charges the captain drew for a further sum to the teams or vehicles used in the transportation of ores banks that have gone out of existence to make reof $1,410 70. Procuring no business in New from the mines where the same are excavated to the place turns, as there seems no one now required by Orleans she was compelled to proceed to Boston where they are reduced or worked.

law to make such returns. in ballast, where to pay off her crew and meet other Mr. Chairman, I offer this amendment to obvi- Mr. WILSON. I propose the following as a expenses there was a further disbursement of ate any difficulty that might arise from the uncer- substitute: $1,176. Ai Boston the vessel chartered to go to lainty of the phraseology of section one hundred That section one hundred and ten be amended by insertPhiladelphia in ballast for cargo, and at Phila- || and three of the law of 1864. The revenue officers ing after the words 6 Ist day of July, 1864,” the words, delphia, before a dollar of the new charter was in the State of Nevada are already collecting from Proridel, That on and after the 1st day of April, 1805, in available or even earned the captain again drew the teamsters and those engaged in hauling logs

lieu of the rates of duty on circulation prescribed by this

section, there shall be levied, collected, and paid, a duty of for $576. Total disbursements from time of as well as mineral ores a general tax of one half

one half of one per cent. each month upon the average leaving Philadelphia to return for another cargo, of one per cent. upon the gross proceeds, neces- amount of circulation issued by any bank, association, $6,238 05.

sarily collectible only after the reduction of the corporation, company, or person; and from and after the At this point the Government paid the $6,000 in pres. This operates as a hardship, and if con

Ist day of September, 1865, a duiy of one per rent. each

month upon the average amount of such circulation as certificates of indebtedness, then selling at ninety.

tinued will involve the suspension of that sort of aforesaid. And whenever the outstanding circulation of four, the owners thus receiving but $5,640 in cash

business; for it is frequently a greater percentage any bank, association, corporation, company, or person, for the period during which the actual disburse- than the teamsters receive for their labor. No one shall be reduced to an amount not exceeding five per cent. ments in cash were $6,233 05, showing a net cash can know the value of the rock until after its re

of the chartered or declared capital said circulation shall

be free frem taxation. And wlienever any State bank or loss for the time of about six hundred dollars, or, duction. Very often rock that is considered val- banking association has been converted into a national to be precisely accurate, $593 05, besides the in- uable fails to pay the necessary expenses of re- banking association, and such national banking association

duction. terest on advance, nearly two hundred dollars

has assumed the liabilities of such State bank or banking I do not suppose that the imposition of this tax

association, including the redemption of its circulation, or

in case a national banking association sliall become the And now, sir, after this melancholy experience was contemplated when the act was passed; but owner or possessor of the assets or liable for the redemption the tax collector came forward and demanded of

as the Commissioner of Internal Revenue has de- of the circulation of any State bank that has surrendered the owner of the vessel two and a half per cent, on cided that this tax is properly levied in such cases,

its charter or ceased to exist, sucli national bauking asso

ciation shall be held to make the required return and paythe $6,000 which the Government paid as above, I think it eminently just that this amendmeni

ment on the circulation outstanding, so long as such circuand on top of all losses already incurred actually || should be adopted, in order to remedy the hard- lation shall exceed five per cent of the capital before such

conversion of sucii Staie bank or banking association; compelled him to pay $150 under that section of || ship that now exists. the internal revenue law which we are now seek

The amendment was agreed to.

and no national banking association after it shall have re

ceived from the Comptroller of the Currency any of its ing to amend. And the example I have given, sir, Mr. HOOPER. I move to amend by insert

notes for circulation, shall pay out the notes of any State is by no means solitary. The experiences of very | ing, after line six hundred and ten, the following: bank or banking association; and no State bank or bankmany ship-owners engaged in the coasting trade That section one hundred and ten be amended by insert

ing association shall issue for circulation any notes on its would show similar dismal results, and the convic- ing after the words “ Ist day of July, 1861," the words,

own or of any other State bank or banking association aller tion among that entire class of men-us honorable Proviiled, That on and after the 1st day of July, 1865, in

the Ist day of April, 1865.” lieu of the rates of duty on circulation prescribed by this and patriotic citizens as the Republic can boast

Mr. Chairman, I was not one of those who in section, there shall be levied, collected, and paid, a duty is that the law is oppressive in the extreme and of one quarter of one per cent. each month upon the aver

the Thirty-Seventh Congress voted for the adopbased on radically erroneous principles of tax

age amount of circulation issued by any bank, association, tion of the present national banking law. I did ation.

corporation, company, or person; and from and after the Ist not believe that it was for the interest of the coun

day of January, 1866, a duty of one half of one per cent. There is no analogy between this tax on the

try to adopt that system of banking. I did, howeach month upon the average amount of such circulation gross receipts of vessels and the tax on the gross as aforesaid. And whenever the outstanding circulation

ever, vote for the amendatory act because I thought receipts of railroad companies. In the case of the of any bank, association, corporation, company, or person,

that was an improvement of the original one. shall be reduced to an amount not exceeding five per cent. railroads the law allows them to add the tax di

But it is now the established policy of the Govof the chartered or declared capital, said circulation shall rectly upon the regular rates of fare, and many

ernment, and I think that it should be made the be free from taxation. And whenever any State bank or of the companies have construed this in the scrip- || banking association has been converted into a national

exclusive policy of the country so far as banks tural sense of liberality-being asked for one mile, banking association, and sucb national banking association

of issue are concerned. In order to arrive at that has assumed the liabilities of such State bank or banking they readily go the "twain." But this mode of

end I propose by this substitute to prohibit State association, including the redemption of its circulation; or, relief, or of shifting the burden upon the general

banks or banking associations issuing notes for in case a national bauking association shall become the public, is not practicable in the case of vessels. owner or possessor of the assets, or liable for the redemp

circulation after the 1st day of April, 1865. There is no way in which it can be evaded or

tion of the circulation of any State bank that has surren- I regard as next in importance to taxation the

dered its charter or ceased to exist, such national banking dodged or placed on other shoulders or divided

reduction of the volume of the currency, because association sball be held to make the required return and between other parties. It comes remorselessly

it will make our taxes of greater value, although payment on the circulation outstanding, so long as such upon the enterprising ship-owner, and whether circulation shall exceed five per cent. of the capital of such

the same in amount, and reduce the price of his voyage has been a profit or a loss, whether it State bank or banking association.”

everything the Government has to purchase. enriches or impoverishes him, the tax is all the Mr. HOLMAN. I rise to a point of order.

Now, sir, I do not think that it is owing to the same, without discrimination and without mercy: | My point is, that this is not properly an amend

issue of paper currency that the price of everyA man's profit in business affords a fair basis of meni to the pending bill, but is an amendment to

thing in the country is so infiated, for I presume ta xation; but it is a cruel mockery of one's mis- the original act. I submit that it is not germane

that a like amount of gold and silver in circulafortune to assess a tax upon losses. I trust, there

We have to any provision of the bill now before the

tion would produce the same effect. fore, Mr. Chairman, that this unwise and unjust | House.

an example of the effect produced in California tax will be repealed, and that the commercial men The CHAIRMAN. The Chair overrules the

where the circulation is gold and silver. I will of the country who do so much to sustain our point of order.

read, in illustration of this idea, an extract from finances and our honor will be relieved from its Mr. HOLMAN. I very respectfully appeal

a work on foreign and domestic commerce; oppressive exactions. from the decision of the Chair.

“It is contended by the commercial journals of San Mr. BROWN, of Wisconsin. I move an The CHAIRMAN. The gentleman from Mas

Francisco that the currency of California, which is mostly amendment in the nature of a substitute, to strike sachusetts (Mr. HOOPER] proposes to insert at

coin, is more abundant in proportion to population and

wealth than that of the Atlantic States. The Mercantile out the whole clause, and insert in lieu thereof the end of line six hundred and ten an amend- Gazette of February 12, 1864, represents the amount in the following:

ment to section one hundred and ten of the ori- circulation on the Pacific coast at $25,000,000; that the That section one hundred and three be amended by ginal act. Upon that the gentleman from Indiana

population of California with adjoining State (of Oregon)

and Territories is six hundred thousand; which gives $1100 striking out the words two and a half per cent. upon raises the point of order that section one hundred

per capita. The total value of real and personal property gross receipts” and inserting “two and a half per cent. and ten not being embraced within the amend- on the Pacific coast is estimated by the Gazetie to be upon the net receipts under $3,000, and five per cent. upon ments presented by the committee, it is not now $340,000,000, of which $25,000,000 is about seven percent. the excess." in order to amend that section of the original act.

The currency of the loyal States east of the mountains, The amendment of the gentleman from Maine, | The Chair holds that the pending bill brings up

notwithstanding its expansion to meet the exigencies of the

nation, is below those ratios to population and property. in favor of which I withdrew my substitute, does the whole of the original act, and therefore he The population of the loyni States and of the insurrectionnot reach the evil as regards the lakes. The evil, overrules the point of order. The gentleman from

ary districts which are lield by the Army (in June, 1064) as the gentleman from Maine has just remarked,

is twenty-four million. If the currency was at the Cali Indiana - npeals from the decision of the Chair.

fornia standard--forty-one dollars per capita—its acerouille is that the vessel-owners pay a tax upon their MF. HOLMAN. I withdraw the appeal. amount wouid be $984,000,000; and a proportion of seven Josses and also upon their expenses; whereas Mr. HOOPER. Mr. Chairman, I wish to say, per cent. upon the total valuation of property would give the true foundation of the tax should be the || in regard to that amendment, that it has been pre

an equal aggregate.” net earnings. ! propose, in my amendment, to pared with some care to carry out the recom- This shows that the amount of specic circulaadopt the principle of laxing the net earnings of | mendation of the Secretary of the Treasury in tion on the Pacific coast is greater per capita than

his annual report, and also the recommendation Il ie the paper circulation in the remainder of the


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