effect, the debt had risen to $75,000,000; in 1804, to $86,000,000. From that time it gradually diminished until the commencement of the late war, in 1812, when it was reduced to $45,000,000. By that war, the debt was again increased, being, in 1816, $127,000,000.

§ 8. The raising of so large a sum, by a direct tax, would have been very oppressive. Wherefore congress exercised its power of taxation almost exclusively in laying duties on imports; and from the revenue thus raised, not only have the yearly expenses of the government been defrayed, but this vast national debt has long since been paid, leaving in the treasury a large surplus of more than thirty millions of dollars, which, by an act of congress in 1836, was apportioned among the several states, to be kept and used by the states until called for by congress. Probably the return of the money will never be demanded.

§ 9. Equally necessary is the power next mentioned, "to borrow money on the credit of the United States." Large sums of money are sometimes wanted to pay a debt before they can be raised from the revenues or regular income of the nation; and sometimes immediately, as in case of war. In such case, congress must either tax the people, or borrow the money. But who would lend the government, if it had not the means of paying? Hence we see the utility of both these powers. Capitalists now have confidence in the credit of the government; because, if other means of fulfilling its engagements are insufficient, it has power to raise the money by direct taxation.

CHAPTER XXXIV.

POWER OF CONGRESS, IN RELATION TO COMMERCE.

§ 1. THE power "to regulate commerce with foreign nations," which is next in the list, seems to be in a measure connected with the first, "to lay duties." It will be remembered that, before the war of the revolution, the colonies were dependent on Great Britain for manufactured goods. (See Chap.

X.) By that war, the direct trade with that country was interrupted. But when peace was restored, our markets were again open to British goods; while upon American produce and American vessels entering British ports, heavy duties were levied. Thus was the trade of the two countries placed on an unequal footing. We wanted English goods, but England would not take the produce of our labor in exchange without subjecting it to heavy duties.

§ 2. Some explanation may be necessary to enable young persons to understand the objects and unequal operation of this measure of British policy. One object was to secure a market at home for the products of agricultural labor. To show how this is done by taxing foreign products, let us suppose the cost of raising a bushel of wheat in England to be one dollar, and the cost of producing it here and transporting it to that market to be the same. If now a duty of 40 cents a bushel is laid by Great Britain upon foreign wheat, the English consumer, instead of buying it with this duty added, will buy of the English producer. But the American farmer has wheat for which he must find a market abroad; and in order to sell it in the English market, he must pay 40 cents on every bushel to the British government; or, which is the same thing, he must sell it for so much less than its value to the British purchaser, who pays the duty to that government.

§ 3. The people of this country being nearly all employed at that time in agriculture, and consequently dependent upon foreign markets for the sale of the surplus products of their labor, they were compelled to submit to these duties. As the result of this system, the consumers in Great Britain obtained their supplies partly at home and partly from abroad; and the British government thus accomplished the two-fold object of encouraging and rewarding agricultural labor at home, and of drawing a large revenue into its treasury by taxing the same kind of labor in this country.

§ 4. Not possessing the means at that time of manufac turing to any considerable extent, the country was flooded with goods from Great Britain, for which our citizens must either pay in money, or in produce heavily burdened with duties. Hence, some measures for regulating foreign trade became necessary. But congress had not the power to regulate commerce; the power belonged to the states. The

states, acting separately, could not effect the object desired; and they were unable to agree upon any general system of measures. A history of the attempts which were made to remedy the evils complained of, and which resulted in the formation of the constitution, in which the power to regu late commerce was inserted, has been given. (Chap. XXX.)

§ 5. It has just been remarked, that the two powers "to lay duties" and "to regulate commerce" seem to have a connection. Indeed, the former has been used to carry into effect the latter. One of the means by which it was intended to regulate our foreign trade, was the laying of duties upon foreign goods, with a view to check the excessive importation of them, and to encourage and aid our own citizens in supplying the deficiency by manufacturing for themselves.

§ 6. That the power to lay duties was intended to be used for this purpose, appears from its immediate exercise by congress. The first law, except one, passed under the present constitution, authorized "duties to be laid on goods, wares and merchandises imported," and for purposes, one of which was declared to be, "the encouragement and protection of domestic manufactures." It was by such regulations of her foreign trade that England had strengthened her manufacturing interests, and acquired such advantages over other nations; and it was intended, by the adoption of a similar policy, to render this country less dependent upon others.

§ 7. It may be proper, however, here to observe, that, for many years, congress did not find it necessary to exercise this power to a very great extent. Soon after the constitution went into effect, the principal nations of Europe became engaged in war, in which England also was involved. A large portion of the population of those countries having been withdrawn from agricultural pursuits to serve in the armies, a foreign demand was created for the productions of our soil; and our people were enabled to supply themselves at less disadvantage with manufactures from abroad.

§ 8. But after peace had been restored in Europe, and people had returned to their wonted employment, the principal foreign demand for our breadstuffs ceased; and the severe effects of large importations of goods began again. to be experienced. Congress now deeming it necessary to

exercise, to a greater extent, its power to regulate trade, by discouraging importations and encouraging domestic manufactures, commenced an effective system of protection, in the year 1816. Although duties were imposed upon many articles, the great interest encouraged by the act of that year, was the manufacture of cotton goods, especially those of the coarser kinds.

§ 9. Since that period, laws have from time to time been passed, extending the like favor to the manufacture of iron and iron wares, woolen, and a great variety of other goods. Manufacturing is now carried on very extensively in this country; our citizens being supplied in great part—with some articles almost exclusively-by our own manufacturers. A large portion of the people having thus been drawn into manufacturing and mechanical employments, and become consumers instead of producers of agricultural products, a market has been created at home demanding more of the grain, meat, and other products of agricultural labor, than is usually required to supply all foreign demand.

§ 10. Congress has power also "to regulate commerce among the several states." Without this power, each state might adopt regulations favorable to its own citizens, and injurious to those of other states. This was actually done under the confederation; and to restore and preserve harmony, and to secure equal justice to the citizens of all the states, which could be done only by one uniform system for the whole, this power was given to the general government.

11. Under the power to regulate commerce, congress has also made navigation laws-laws relating to the shipping of the nation. The want of a power in congress to retaliate the navigation acts of Great Britain, has been mentioned. Since the adoption of the constitution, congress has at different times laid discriminating tonnage duties. An act of this kind was passed by the first congress, imposing a duty of fifty cents a ton upon foreign vessels, and upon American vessels six cents a ton. Laws have from time to time been passed, modifying these duties as circumstances and the regulations of other nations required, until they have become

unnecessary.

§ 12. Laws, however, still exist, requiring vessels to be measured to ascertain their tonnage, and prescribing the manner in which they are enrolled or registered and licensed,

and in which they are to enter and leave ports, the duties of masters of vessels, what papers they are to carry, &c. The laws also prescribe regulations for collecting the revenue arising from foreign commerce. There is in every port of entry a collector of customs, who superintends the collection of duties. When a vessel arrives, it is submitted, with the cargo, and all papers and invoices, to the inspection of the proper officers; and the goods subject to duty are weighed or measured, and the duties estimated according to law.

§ 13. On some articles a specific duty is charged, which is a duty of a certain amount on a pound, yard, or gallon; as, two cents on a pound of iron, or fifty cents on a yard of cloth. Others are charged with an ad valorem duty, which is a duty according to the value, being a certain percentage on the value of an article; as forty per cent. on what costs one dollar would be forty cents; or thirty per cent. on one hundred dollars would be thirty dollars.

§14. Our foreign commerce has become very extensive, and the revenue derived from it is large. The average value of the goods imported during the last ten years, ending June 30, 1857, is $200,000,000. The average amount of duties collected on the same, is about $50,000,000. The duties on imports, and the proceeds of the sales of public lands, which have averaged during the same time, $5,000,000 annually, constitute nearly the whole revenue, from which are paid the salaries of officers and other expenses of the general government.

CHAPTER XXXV.

POWERS OF CONGRESS IN RELATION TO NATURALIZATION, BANKRUPTCY, MONEY, COPY-RIGHTS AND PATENTS.

1. ANOTHER power given to congress, is the power "to establish a uniform rule of naturalization." It has already been stated, that foreigners, or aliens, are not entitled to the privileges of citizens till they become naturalized. Before the constitution was adopted, every state established