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TAX BILL.

And as

lowers, but few in number it is to be hoped, with reference to which the owner or his agent shall Now, let me say, in relation to this proposal, however, say; “Let the Union slide;'' but the commit any violation of this section shall also be

that there is a very great difficulty about it. forfeited. party to which I belong, the great party of the

This provision, if adopted, cannot be enforced. Union, say "No; we love the Union; it gives Mr. MORRILL. Mr. Chairman, the amend

By the provisions of this bill we provide for us life, protection, homes, plenty, liberty, indi ment pending, offered by the gentleman from the collection of this tax when the cotton is vidual freedom, and by the Eternal it shall be Maine, [Mr. LYNCH,) provides that a certain removed from the district or when it is manupreserved. Now, I hope the gentleman amount, either six hundred or one thousand factured in the district where it is produced. If understands to which party I belong.

pounds of cotton-six hundred pounds, I be there is any one in any of those districts who The hour of half past four o'clock p. m. lieve-shall be exempt from tax throughout raises cotton and who shall see fit to manufachaving arrived, the House, pursuant to order,

the South wherever cotton is produced. ture an amount of cotton equal to that allowed took a recess until half past seven o'clock Mr. LYNCH. If the gentleman will allow

persons

in the North, he will have the same me, I will modify my amendment.

privileges of exemption as the man who manMr. MORRILL. Very well.

ufactures cotton in the North. If we allow EVENING SESSION.

Mr. LYNCH. I withdraw my amendment, this six hundred pounds of cotton to be exThe IIouse reassembled at half past seven

and move to add to the section the following: | empted for each producer, then every bale o'clock p. m.

Provided, That any producer may in each year pro of that exempt cotton must be traced throughcure an excinption of not more than six hundred out the country wherever it goes. It is quite

pounds of cotton produced by himself and owned by Mr. MORRILL moved that the rules be him from planting to baling and exemption, by com

enough to be called upon to trace this cotton plying with such regulations as the Commissioner of

to the manufacturers or when it leaves the dissuspended, and that the House resolve itself

Internal Revenue shall prescribe, under the direc trict. To undertake anything more would be into the Committee of the Whole on the state tion of the Secretary of the Treasury.

futile, and in my judgment absolutely imposof the Union on the special order.

Mr. MORRILL. In my judgment, this sible. The motion was agreed to.

amendment, if adopted, will be utterly destruc Mr. LYNCH. I would like to ask the chairSo the rules were suspended ; and the House tive of all revenue from this source.

man of the Committee of Ways and Means accordingly resolved itself into the Committee

I know my friend from Maine [Mr. Lynch) is of the whole on the state of the Union, (Mr. || in favor of a tax upon cotton, I trust he will

[Mr. Morrill) if there will be any more diffi

culty in putting the exemption stamp on the Dawes in the chair,) and resumed the con withdraw it.

bale than to put a stamp on to show that it has sideration of the special order, being a bill of But before yielding the floor let me say that | paid the duty. the House (No. 513) to amend an act entitled if this amendment should be adopted every Mr. MORRILL. The cotton the gentleman "An act to provide internal revenue to support | piccaninny in the South would have six hun: the Government, to pay interest on the public | dred pounds of cotton to be exempted. All

proposes to exempt will be in very small par

cels, about a bale and a half each, and it will debt, and for other purposes," approved June of the land would be leased or so managed come in from all quarters, whereas in the gen80, 1864, and acts anclatory thereof.

that every workman, whether employed for eral administration of the law it comes in in The first section of the bill which was under

wages or otherwise, would come forward with large parcels. consideration is as follows:

what would appear to be a valid claim for an Mr. LYNCH. I understand that each bale That on and after the 1st day of July, 1866, in lieu

exemption, and if this amendment should be is to be stamped. of the duties on unmanufactured cotton, as provided in an act to provide internal revenue to support the

adopted, I should regard it as equivalent to The CHAIRMAN. Debate has closed upon Government, to pay interest on the public debt, and the rejection of this proposition to tax cotton. the amendment. for other purposes, approved June 30, 1851, as amended Mr. LYNCII. I should be very sorry to The question was taken on the amendment by the act of March 3, 1805, there shall be paid hy the producer, owner, or holder, upon all cotton produced

propose any amendment here which would of Mr. Lyxca, and it was not agreed to. within the United States, and upon which no tax has defeat the object of the committee in levying Mr. UPSON. I move to amend this secbeen levied, paid, or collected, a tax of five cents per

a tax upon cotton. When I offered my first tion by striking out the word “five'' and inpound, as licreinafter provided; and the weight of suth cotton shall be ascertained by dedueting four

amendment, I stated that my object was to serting the word " three," as the tax per pound per cent, for tare from the gross weight of each balo encourage the small producers of cotton in the to be levied on raw cotton. or package, and such tax shall be and remain alien

South; and also to follow out the general prin I will state briefly my reason for offering thicon, in the possession of any person whomsoever, from the time when such cotton is produced as afore

ciple of the bill which exempts the small man this amendment. I consider the tax proposed said until the same shall have been paid; and no ufacturers of the North, the miners that pro by the bill as exorbitant and calculated to have drawback shall in any case be allowed on raw or duce a small amount, and incomes to a certain an injurious effect, that tax being equivalent to unmanufactured cotton of any tax paid thcreon when exported in the raw or unmanufactured condition.

I think there will be no more diffi twenty or twenty-five dollars per bale. But no tax shall be imposed upon any cotton im culty in guarding against fraud in the exemp Besides, it will be found, by an examination ported from other countries, and on which an import

tion of this amount than there is in guarding of the bill, that after the cotton is manufacduty shall bave been paid.

against fraud in the exemption of $600 worth tured into 'fabrics there is to be an addition The pending question was on the following of manufactured goods.

of five per cent. ad valorem; so that the conamendment offered by Mr. Lynch:

It is hardly to be supposed that a planter can sumer of this cotton, when it is manufactured, Provided, That any producer may procure an ex farm out to all his hands his plantation, while will liave to pay that five per cent. duty added cmption of not more than six hundred pounds of he really owns all the crop, and have every to this tax. coiton in any one year, as follows: Upon exhibiting the same to the assistant assessor

one of them come forward and make oath that Although it is said that the consumers who of the district where said producer resides and where they each own six hundred pounds of cotton, will pay this tax will, to a considerable extent, the cotton was raised, at the place of production, and

and obtain exemption papers upon that amount be those in foreign countries, still a larger pormaking oath that he raised and now owns said cotton, and satisfying the assistant assessor that his

under any regulations that may be made by the tion of these manufactures will also be used in sworn statement is true, the assistant assessor shall Commissioner of Internal Revenue. I do not this country. And I find that the producer is fitiy mark the bale or bales of said cotton with the

see that the farmer can attempt that any more number of pounds, being not more than six hundred

generally very desirous to exempt the product s ascertained by wcight then and there, and with the successfully than the manufacturer at the North from tax, as in the case of petroleum, in regard following words: “Cotton produced in the

can share out his factory and thus avoid the to which the qnestion was considered so urgent ment district in the collection district in by

that a bill on that subject was yesterday rushed -, and owned by him on the

five per cent. tax.

day of , 18and exempt from taxation;" filling said blanks with I think it is a matter of a great deal of im- | through as an independent proposition. I infer, the designation of the assessment district and also portance that we encourage these small pro from facts of this sort, that a tax of this kind of the collection district, the name of the State. the name of the producer and owner, and the date when

ducers of the South by giving them the advan does, at least in some cases, affect in a measure said excmption is so ascertained and marked thereon. tage of this exemption, and let them feel that the producer as well as the consumer. The assistant assessor shall give to said producer a the Government is a beneficent one. While I submit that, in the present state of our certificate of such exemption setting forth the above at the North I would not encourage any class facts, and also the place of production as near as can

country, a tax of five cents per pound on cotbe, and the payment of his fee. He shall also make distinction, I would permit this at the South. ton would be a very heavy burden, and is cala full record of all such exemptions and transmit a I think it is for the interest of the Government | culated, I think, to work more injury than transcript of the same to tlie assessor. The assistant assessor shall be allowed a fee of two dollars for all

that they should make the poor white people benefit. This tax will weigh heavily upon a his services in each case of exemption, to be paid by and the poor black people of the South feel | large class of our people who make use of the producer. Any person swearing falsely in pro that they had certain privileges and certain manufactures fabricated from cotton. The curing such exemption; and any person using or attempting to use the exemption certificate or marks exemptions, and I think it is no more than right tax is now two cents per pound.

I notice that provided for in this section with intent to procure and just that the same principle should be some of the southern States, North Carolina exeinption for any other cotton than that which was applied at the South that is applied at the for instance, have gone through the process of lawfully exempted as such certificate and marks set

North. I will leave the House to decide the || levying a tax of two dollars per bale on cotton forth; also, any person selling or giving away, purchasing or receiving such certificate or marks with matter.

to support their provisional governments. The intent to defraud or to aid in defrauding the revenue Mr. MORRILL. I regard this matter to be article is also subjected to other local taxes in shall be liable, upon conviction thereof, to a fine of fifty dollars or to not more than three months' im

quite as important as the gentleman from Maine the States where it is produced. prisonment. Under the provisions of this section no [Mr. LYNCHI] can regard it. And I would like Mr. STEVENS. If the gentleman from cotton in its unmanufactured state shall be exempt to reach the point of being able to give these Michigan [Mr. Upson) had not moved to refrom taxation for more than ten months after thedato

men the bounty which he proposes, for it is of its marks or certificates of exemption. Any per

duce this tax, I should have moved to amend 80n, other than the producer named in the certificato nothing less than a bounty. It we do not adopt by striking out “five" and inserting "eight.” and marks aforesaid, who shall subsequently to such the provision the gentleman proposes they will I'think there is very good reason why this one exemption claim property in any cotton so exemptel, by virtue of nowhership Serior barca torre cotton l welloffasthey would be if wedo not pass the law. have nothing taken from them; they are as article should pay a very large portion of the,

taxation which we are obliged to raise. If we

amount.

assesg

we can.

had a right to lay an export duty, which the the consumers of the cotton. In the present || and I am willing to accept that propositionConstitution at present forbids, we could, with condition of the supply of cotton the tax must as an exceptional article that justifies the vioan export duty of ten cents per pound, raise come out of the producer. The price of cot lation of the rules which we have applied to $200,000,000 annually, while at the same time ton both here and abroad will depend on the subjects of taxation generally in this country. protecting our own manufacturers and selling | extent of the supply, and whether you tax it In the last Congress I endeavored to apply abroad just as much cotton as we do now. two cents or twenty cents the price will not be a similar rule to the produetion of tobacco, Under the circumstances we must do the best affected by the tax until it operates to restrict taking it off from the manufactured article and

The only thing we can do is to lay | the production of cotton in this country. substituting it in a much less amount upon the an internal duty, and then allow a drawback It is a mistake to suppose that because we raw material. The difficulty that we then upon that portion of the manufactured article | produce more cotton than any other country, encountered was the collection of the tax in which is exported. That is the only mode by or perhaps than all other countries, therefore that form without imposing a burden upon the which we can now do what we ought to do. we have the monopoly of the article. What producer. The same difficulty exists in respect

Mr. UPSON. I wish to inquire whether the ever tax we impose on cotton is paid by the to cotton, and in addition to that there seems object of the drawback is to enable us to sell | producer until it restricts the production; and to be a difficulty in the minds of many gentlemore cheaply to foreign countries than to our then it will operate as a bounty to encourage men in regard to the amount of this tax. own people. its production in other countries.

Now, one thing I apprehend is conceded on Mr. Sİ'EVENS. The object of the draw We shall not force the foreign consumer or all hands, and that is that in respect to certain back is to enable us to go into the markets of even the consumer at home to pay this tax. It varieties of cotton, and only in respect to certhe world with our manufactures, where we must come out of the producer of cotton until tain varieties, we are without competition in cannot now go-to enable us to go where Eng. the extent of the crop is so great that this tax the production of the world. In the long staland is able to go by her free-trade system at will operate as a restriction upon its production. || ple, the most valuable kind, we have at present home-to enable us to go to South America, Mr. MORRILL. Mr. Chairman, this sub no successful competition. But there is in to France, to the continent of Europe. If we ject is not a new one. It is very clear that if various parts of the world a production of a would manage our concerns wisely, if we the proposition which was made at the last very large amount of cotton of an inferior qualwould lay a tax, for instance, of ten cents upon session of Congress to tax cotton five cents a ity, the short staple, which, if we tax the raw all of the article that is exported and nothing pound had been carried, we should have got | material too high in this country, will encroach, at home, there is not a market in the world to many millions of money without impoverishing I think, upon the monopoly that this country which the fabrics of this country would not the country a dollar. Every dollar of it would has hitherto enjoyed. find their way.

We must approach the object have been paid by the foreigner. And so long The practical question, therefore, in my judgas nearly as we can; and as we have to raise as cotton remains at the present price, or until ment, is, whether we put the tax so high as on a considerable amount by internal taxation, it comes down to a much lower rate, the posi- || the one hand to develop the production in forlet a portion of it be borne by those who raise | tion taken by the revenue commission without eign countries of a superior article, and on the the article of cotton and who created the neces a single exception, I believe, was that it would other to compel the increase of the amount of sity for this taxation.

continue to be the same; that the price levied the inferior article in place of that we have Mr. UPSON. I thought the object was to || by the tax would mainly come out of the cotton hitherto sent into foreign markets from this benefit the home market.

sent abroad. And not one of the manufacturers country.' Mr. STEVENS. Internal duty is not pro were opposed to it at the time. It was accepted It is upon that point that the principle I tection ; it is just the reverse of protection. provided a little pittance of drawback was given inaintain applies. I do not believe that we Mr. UPSON. I speak of the drawback. upon manufactured cotton.

have a permanent monopoly of the markets Mr. STEVENS. The object of the draw. Now, if we are to have any revenue at all of the world in the production of cotton back is to enable the people of this country to of this sort let us put it at some figure that will to the extent claimed by some. And I am send their manufactures advantageously into make it of some importance, and not whittle it as apprehensive in regard to this as I was on the markets of the world, without being over down to a point so fine that it will cost more the subject of tobacco, that we may so affect borne by the competition of the cheap man to collect it than the revenue is worth.

the production of the raw material as actually ufacturing countries of Europe. How can we The CHAIRMAN. Debate is exhausted on to develop successful competition and take accomplish this except by a drawback as pro the amendment to the amendment.

from ourselves the monopoly in the world that posed by the bill? We now allow a drawback The question being taken on the amendment we now have. on whisky. We put no tax upon whisky ex to the amendment, it was not agreed to.

I should have preferred that the committee ported. Why is this? It is that we may go Mr. PIKE. I move pro formâ to amend by had settled upon three cents, with a correinto other countries and sell that article with making it six cents.

sponding drawback on the manufactured artiout being affected by the burdens of taxation The House ought to recollect in acting upon cle. I think both branches of the subject, the which we are compelled to bear here. But it || this subject of cotton, that the other day we tax and the drawback, should be considered enables us to pay taxes in proportion, if we || passed å bill making an appropriation for the | together. can sell a portion of our surplus production next year of very nearly twelve million dollars, I hope in this as in all similar subjects conabroad at some kind of profit. And therefore, || in great part for the purpose of protecting,

nected with the material interests of the instead of sending the raw material abroad, | encouraging, and assisting this raising of cot country, no gentleman will attempt to put it let us now manufacture it here, and when we ton; that is to say, for the Freedmen's Bureau. on the ground of vindictive punishment upon have manufactured it here, and our manufac The necessity for that bureau lies in the fact the people of the South. It is the most dantories have been fully employed, let us send the | that the population in the South, both white gerous element that we can introduce into our product abroad to other countries where it is and black, need assistance for the next year, deliberations upon this as well as all other needed. But in order to do that you must and that they were largely engaged in raising | subjects. I say this for fear that some at least take off a portion of the duty which is neces cotton and in raising the corn necessary for their of my associates upon this floor may think

Therefore I am opposed to the own subsistence. So that it is one of the neces. that cotton will bear any amount of taxation amendment of the gentleman from Michigan, sities of our position that so long as we make we choose to put upon it, and that the burden [Mr. Upson.) although I am deterred from this large expenditure, such as we make in no will fall on the South. We in the North, who saying anything about the eight cents tax, as I other section of the country, the region in which consume most largely, pay the burden in the intended.

we make this liberal expenditure should make first instance, and then the foreign consumers Mr. HOOPER, of Massachusetts. I move a liberal contribution in return.

pay the residue of the burden in the second to amend the amendment by making it two Another consideration is, that it is necessary | instance, after the drawback is allowed on the cents instead of three.

to keep up a standing army in that section of manufactured article. I regret to differ from my colleagues on the | the country where cotton is raised. It will be I hope, therefore, that the tax will not be committee upon this or any other item in this necessary to employ a large portion of our increased above five cents, nor decreased bill, and I believe it is the only important item Army in that section for the coming year, if below three cents, and for myself, I should in regard to which I differ from them. But not for years to come; and so long as these || prefer to start the experiment on the grade of my conviction is very strong against this tax. extraordinary expenditures are necessary in

three cents. The main object of this bill is to relieve the that part of the country, so long we should Mr. PIKE. I withdraw my amendment. country from some portions of the burdens of draw a revenue from that section somewhat to Mr. BOUTWELL. I move to amend the taxation, and cotton is the only article on which correspond with those expenditures.

amendment by striking out “ three and inthe tax is increased-the present tax being two Now, the revenue commission, viewing this serting in lieu thereof'' two and a haif." I cents, equal to about nine dollars per bale- | simply as a revenue matter connected with do it for the purpose of saying that I canand this bill proposes to increase it to five safety to the production of cotton, and to its not concur with the Committee of Ways and cents, or about twenty-two and a half dollars maintenance in the markets of the world as Means in the policy of putting the duty at five per bale. During the war Congress refused to an article of export, have proposed a duty of cents per pound, and chiefly upon general impose more than two cents upon cotton. It five cents a pound. I am satisfied with that.

So far as I can be supposed to have seems to me unjust and impolitic, now that the Mr. KASSON. I believe that from the first an interest in the manufacturing industry of war is over and every one desires to see the there has been no member of the Committee | the country, I do not know that the manufacindustry of the South revive and flourish, to of Ways and Means more interested than my turers are particularly concerned in the amount oppress the production of cotton with this bur self in the question of taxing raw material in of the tax on the raw material, provided that densome tax.

the hands of the producer. Upon this ques the drawback on goods exported corresponds It is not true that this tax will be paid by Il tion of cotton it has been treated by them with the tax laid on the raw material. But I

sary here.

reasons,

excise tax on cotton ?

i l be

excise tax on cotton ?

concur with the gentleman from Iowa [Mr. from Vermont [Mr. MORRILL] allow me to hy another gentleman, to be paid by the proKasson] that if the tax be put at five cents, inquire whether this testimony was not taken ducer, or secured to be paid before the cotton and there be not a drawback, it will destroy when the price of raw cotton was something || leaves the plantation, which is substantially the manufacturing interests of the country. like twice what it is at the present time; and

the effect of this amendment, that very moBut I object to it chiefly upon general grounds. also, too, when the anticipation of the quan ment you reduce the price of the labor of every It is pretty well known that in reference to all tity of cotton in the South to be brought out freedman in the southern States. In proporpolitical matters concerning the South, and the was something like a million bales, whereas in tion as you facilitate the production of cotton restoration of that section of the country to its fact we have obtained one million nine hun and increase the demand for it at home and former relations to the General Government, I || dred thousand bales or more?

abroad, just in that proportion do you enhance am, in some degree, uncompromising. But Mr. MORRILL. I will give the gentleman | the price of the labor of the freedmen of the upon all questions affecting their material pros the full advantage of all the facts. The facts South. perity, upon everything relating to the restora were, as the gentleman intimates, that the price Mr. UPSON. Let me inquire of the gentletion of commerce and social order, I am in favor of cotton was very much higher than it is now. man whether it is not a fact that at some seaof the most liberal policy on the part of the But it has not fallen below the price that was sons cotton has been raised and sold for six General Government.

then anticipated by gentlemen who had in view cents per pound. Now, sir, if this tax be put at five cents, and the levying of this tax or not below twenty-five Mr. KASSON. Unquestionably, and some the Representatives of the South return here, || cents per pound.

qualities even lower than that. What I apas they must do at some time, I cannot antici Now, let me read from the testimony of | prehend is that the production of American pate anything but well-founded opposition, and Francis B. Crowningshield, the treasurer and cotton may hereafter exceed possibly the desome degree of bitterness on their part, in ref manager of the Merrimack Company:

mand which will exist for it at the high price erence to this matter. We should consider

" Question. You would scale tax according to the at which our taxes will permanently fix it. It that this must be, to some extent, a tax upon price?

is this apprehension which makes me hesitate the cotton-producing interest of the country,

"Answer. I don't mean to say I would exactly do that; but suppose, for instance, that cotton is not to

very much to vote for this tax of five cents for, while a portion of this increase in price fall below twenty-five cents in the next three, four, per pound at the beginning. I should prefer may be charged over to the manufacturers of or five years, I should say it would bear a tax of to wait until we can ascertain what is to be this and other countries, it cannot be reasonsomewhere about seven cents.”

the effect ot' the increase of two per cent. in ably anticipated, when you impose the duty

Take the testimony of John A. Lowell:

our taxation. equal to fifty or seventy-five per cent. of the

Question. Are you in favor of an export duty or Mr. GRISWOLD. I desire to state to the cost of producing the material in ordinary

"Ansicer. I see no objection to it all.

gentleman that I believe it is an established times, that such a tax will be paid by the con "Question. In case an excise duty were levied, what fact that at twenty-five cents per pound Amerisumers entirely. amount would you recommend ?

can cotton takes the preference in the markets Previous to the opening of the war, in 1861,

Answer. I have thougbt of the matter a good deal, and I have thought about five cents a pound would

of the world over every other kind of cotton. American cotton sold in the market of Eng. || probably be a tax that would affect nobody." land, for about fivepence and three tenths, or The testimony of Mr. E. R. Mudge-a man the authority upon which that is stated, for I something like twelve cents per pound. If

of energy and great enterprise in the manufac noticed that in the remarks of the gentleman you add five cents, or twopence ha' penny per turing business—is as follows:

from Vermont, the chairman of the Committee pound, it must tend to increase the cotton pro

Question. Are you in favor of an export duty or

of Ways and Means, he cited the testimony of duction of other countries. Previous to the

certain gentlemen in this country, and I was war the importation of East India cotton into

* Answer. I should not object.

reminded of what transpired before the ComGreat Britain was between five hundred thou

Question. To what extent?

Answer. I should say that from five to six cents mittee of Ways and Means in the last Congress sand and a million bales a year. During the might be imposed without detriment to the producing in reference to the tax upon tobacco. There war the importation of American cotton into interest of the South for two or three years.

were certain gentlemen who advocated most Great Britain went down from one million I will now give the testimony of William strenuously the imposition of a high rate of eight hundred and forty-one thousand bales, || Amory, another distinguished gentleman, and tax upon the raw material, declaring that we to two hundred and eighty-one thousand and the treasurer of some of the largest cotton had the monopoly of the markets of the world, fifty bales last year, showing a loss of more manufacturing establishments in the country: and that it made no difference what tax we than a million and a half of bales on the impor Question. Would you recommend a tax as high as might impose. When we followed up those tations of American cotton. Now, the impor

five cents? tations into Great Britain of all kinds of cotton

Answer. That would require a great deal of delib- || inquiries, it was found that certain gentlemen

cration. You would have to put a tax on which would back of the witnesses held a very large amount have diminished only three hundred and twenty raise a very large revenue; and if you found there of tobacco on hand, then deposited in Europe, eight thousand bales, comparing the year 1861

were five million bales-which I think very likely to
occur much sooner than my friends generally - I

the price of which tobacco, would, by an inwith 1865, showing an immense increase in the should think you could reduce it much lower than creased tax, have been enhanced to such a cotton-growing interests of other parts of the

degree as absolutely to make a fortune for the world during the prostration of the business But that was not the tenor of the general tes holders of it. I do not know that anything here. timony.

like this was the fact with the gentlemen who Now, if you impose a duty of fifty per cent. Mr. GRISWOLD. Is there any evidence have testified in reference to the article of cot. on the cost of producing the raw material in || before the committee as to the price at which ton; but I mention the incident to show the this country it must inevitably result in an the English manufacturers would use American danger which is to be guarded against in cases increased production of cotton in other coun cotton exclusively?

where the personal interests of a witness may tries. I should much prefer that we should Mr. MORRILL. I do not suppose that that seriously affect his testimony: put the duty at something like three cents per would ever be the case. Surat cotton, valued Mr. HOOPER, of Massachusetts. I underpound, which corresponds with our general | usually at one third less than American cotton, stood the gentleman from New York to say that system so far as we can compare the duties on will most likely always be used for some pur American cotton at twenty-five cents per pound raw materials with the duties on manufactured poses.

has the preference in the markets of the world articles which is observed in the revenue sys [Here the hammer fell.]

over the cotton of any other country. I desire tem of the country, and which is preserved'in Mr. BOUTWELL. I withdraw the amend to inquire on what authority he makes that statethe bill now under consideration. ment.

ment, as it seems to me[Here the hammer fell.]

Mr. KASSON. I move pro formâ to amend [Here the hammer fell.] Mr. MORRILL. I merely desire to show the amendment by striking out “ three and Mr. MORRILL obtained the floor. to the gentleman from Massachusetts that gen: || inserting “four." I desire to refer to the effect Mr. STEVENS. If the gentleman from Vertlemen who are interested in this subject, and of placing the tax too high upon the quality mont will yield to me a moment, I desire to have given it great attention, differ with him of the article that gets into the hands of the say, as some gentleman has spoken of cotton as to the amount of tax that cotton will bear. || people. We all know that the high price of having been sold at six cents per pound, that I have recurred hastily to the report of the wool has resulted in the insertion, in all woolen | gentlemen in whom I have full confidence, who commission on the subject of internal revenue, fabrics which we are compelled to use, of a have traveled through the South within the last and I will quote the names of certain parties | large amount of shoddy. And it is precisely || two years, assure me that with free labor cotton who, I think, will be good authority with the l in that direction that a heavy tax would pro can be everywhere produced there at one cent gentleman.

duce the effect in this case; it would lead to a a pound. I take first the name of Mr. William Dwight, | largely increased introduction of an inferior Mr. WILSON, of Iowa. With the consent a wealthy and distinguished manufacturer. "He kind of cotton. I refer to this in addition to of the gentleman from Vermont, I wish to put was asked if he recommended a tax of seven what I said before in regard to the practical a question or two to the advocates of the reducper cent. upon the raw material, and his an operation of this tax in increasing the price of tion of this tax, for the purpose of eliciting an swer was, “I do." cotton goods in the markets at home.

answer upon a practical feature of this question. Another gentleman recommended a tax of I beg again to say, in connection with this The amendment which is proposed by my only two and a half cents a pound, the only subject, what in effect was suggested by the colleague [Mr. Kasson] will reduce the amount one I can call to mind who recommended so gentleman from New York, [Mr. GriswOLD,] of tax proposed to be collected under the prolow a tax. Erastus Bigelow, a gentleman well that the consumption of this material by the visions of this bill to the extent of about nine known for his enlightened views and practical English manufacturers is very much depend million dollars. The amendment offered by the information upon these subjects, was in favor ent upon the price at which they can obtain | gentleman from Massachusetts [Mr. HOOPER] of a tax upon raw cotton.

it. Suppose we put on a tax of five cents per would reduce the amount to the extent of about Mr. BOUTWELL. Will the gentleinan 1 pound, or the high tax per bale as suggested || twenty-seven million dollars. Now, I wish those

five cents.'

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who advocate a reduction of this tax to state We are fixing it upon the price cotton will rule Mr. BOUTWELL. When I was upon the from what source they expect to make up that for the next two years.

floor before, I made a statement as to the amount of money. The light which they may Mr. MORRILL. I move that the commit amount of cotton introduced into Great Britthrow on this subject may have some effect tee rise to close debate.

ain for consumption; that while the amount of upon my vote on these propositions relative to The motion was agreed to.

American cotton between the years 1801 and the tax on cotton.

The committee accordingly rose; and the 1865 fell off more than one million and a half The Committee of Ways and Means, in pre- Speaker having resumed the chair, Mr. Dawes bales, the total decrease of cotton consumed paring this bill, have had in view the raising reported that the Committee of the Whole on in England was only three hundred and thirtyof a certain amount of revenue. If we reduce the state of the Union had, according to order, six thousand bales. I say, also, that by the same that amount by these amendments we must had the Union generally under consideration, tables, between the years 1861 and 1865, all the increase the tax upon some other articles or and particularly House bill No. 513, to amend cotton imported into England, a portion of which must include as subjects of taxation some arti an act entitled “An act to provide internal was exported to the Continent in 1861, was eles which are not now embraced in the bill. revenue to support the Government, to pay over a million, exclusive of American cotton, I hope, therefore, that those who favor this interest on the public debt, and for other pur while in 1865 the amount of cotton imported reduction will give us some light as to the arti poses," approved June 30, 1864, and acts into England other than American cotton was cles on which they propose an increase of amendatory thereof, and had come to no reso two million bales and over, showing in four taxation, as well as the articles not now in lution thereon.

years the amount of that cotton was double. cluded which they propose to embrace in the

CLOSE OF DEBATE.

Mr. DODGE. It strikes me the subject bill.

before the House to-night has a wider range

Mr. MORRILL moved that debate be closed Mr. MORRILL. The gentleman from Iowa

than has been given to it in this debate. While [Mr. Kasson] has made some allusion to the in ten minutes on the pending section of the

we are looking at the income to be derived bill. testimony taken before the revenue commission. That remark shows that the gentleman

The motion was agreed to.

from cotton alone, we must not forget cotton

is the basis upon which our importations are to knows nothing at all about the character of the

TAX BILL-AGAIN.

be made in the future, and on any provision men who gave that testimony; for I undertake

Mr. MORRILL moved that the rules be

we make for the payment of the public debt to say that there are no men in this country

we look to the duties on imports. We cannot who stand higher where they are known-and I suspended, and that the House resolve itself they are widely known-than the gentlemen into the Coinmittee of the Whole on the state

have large importations unless we have some who gave their testimony before this commisof the Union on the special order.

large article to export. There is nothing more sion.

The motion was agreed to.

important, to my mind, than that our country

should gain as soon as possible the position we Let me make a single remark in relation to

So the rules were suspended; and the House

held in European markets previous to the war. another point suggested by the gentleman from accordingly resolved itself into the Committee Iowa, the difficulty of collecting this tax from of the Whole on the state of the Union, (Mr.

We must not forget during these five years most

gigantic efforts have been made to produce cotthe people of the South. This bill has been Dawes in the chair,) and resumed the consid

ton in India ; that where they produced cotton prepared with great care, and is now presented

eration of the special order, being a bill of the after repeated revision. This tax will only be House (No. 513) to amend an act entitled "An

at a great disadvantage on account of the discollected in the South when it goes to the act to provide internal revenue to support the

tance and cost of transportation, now, by means

of railroads built by English capital, they are large manufactories. There will not be a dollar Government, to pay interest on the public debt,

producing immense amounts of cotton. It collected of planters on their own plantations and for other purposes," approved June 30, on cotton for their own use.

strikes me, as a matter of importance to the When it is re1861, and acts amendatory thereof.

United States, we should, as soon as possible, moved from the district, however, then the tax

Mr. HOOPER, of Massachusetts. Mr. Chair

return to our normal condition, and raise not will also be collected.

man, the proposition, I understand now, is to In conclusion let me say, if gentlemen strike raise the tax to six cents. The gentleman who | only twenty-five hundred thousand but five mil

lion bales of cotton. When we do that the out this amount, they must be prepared to levy

made that proposition said, if the tax be reduced | price of cotton cannot be sustained abore an equal tax in some other quarter.

below five cents it will be necessary to substi twelve and a half cents per pound. Mr. KASSON withdrew his amendment. tute some other tax to make up that amount.

Mr. MORRILL. I ask whether the genMr. RAYMOND. I move pro formâ to

I think the gentleman is mistaken. By the raise the tax to six cents.

tleman does not know that they have raised I do it merely to returns from the Treasury Department it ap

cotton so extensively in India as to produce a get an opportunity of saying I think five cents, pears the revenue for nine months of this year

famine because of the non-production of food, the amount of tax reported by the committee, has been $410,000,000. The estimates for

and that an order has also been issued by the is one which the cotton crop will bear, at presthe remaining three months of the year, which

Pacha of Egypt by which the land devoted to ent at least. The immense sum by which the have been made on a very low scale, give the culture of cotton will be largely restricted revenue provided for will be reduced if any

in amount for the same reasons. change is made in the tax on cotton, seems as the total revenue of the year. From the

Mr. DODGE.

It

That was very natural. actual data, my own impression is, the revenue to be conclusive that no change should be made.

of the year will not be less than five hundred arose from the high price of cotton and the The testimony which the committee has taken and twenty millions. The Secretary of the

immense stimulus given to its production. All

that will be exported; they will not raise so and especially what the commission took during Treasury says that $350,000,000 of revenue

much as to starve hereafter. We are to meet their investigation on this subject, if gentlemen

will give him not less than fifty millions to will examine it, I think they will find is conappropriate toward the payment of the public

a tremendous competition from India, such as clusive on this point that five cents is a very debt next year; and he places that as the

we have not met before; and I apprehend no fair medium tax on cotton.

act can be passed by this Congress which will The chairman of

maximum amount of revenue which ought to the committee has submitted some of this tesbe raised for the year commencing the 1st of

give English capitalists more than the impo

sition of this tax. timony. More of it is published in this sum

July next. mary of the report, appendix No. 3, from which Now, I say the reduction of tax we have pro

Mr. BOUTWELL. I withdraw my amend

ment to the amendment. extracts might be read to the House to throw | posed in this bill, without anything additional light on this subject. But there is no time in upon cotton, would not amount to the differ

The question recurred on Mr. Upsoy's this form of debate to go into that. Mr. Derby ence between $350,000,000 and the revenues

amendment; and being put, the said amenda recognized authority on cotton in England, of the present year, even with considerable

ment was disagreed to. says, in his opinion, an excise tax should be allowance for the falling off of production the The second section was then read, as follevied, and that five cents is not too high. next year; and of that I have no apprehen- lows:

All who accede to this amount of tax desire sion. The South has come in, and we are Sec. 2. And be it further enacted, That the aforesaid a drawback should be made on manufactured preparing for thirty instead of twenty million

tax upon cotton shall be levied by the assessor on goods when exported. It seems to me we people. I think, at the same rate of tax, the

the producer, owner, or holder thereof. And said

tax shall be paid to the collector of internal revenile cannot do better than follow the recommenda revenue for the next year will be as great as within and for the collection district in which said tion of the committee. If any member of the for the present year. I think we need have cotton shall have been produced, and before the House has the facts which will overthrow the

same shall have been removed therefrom, except no apprehension on that score if we levy a tax

where otherwise provided in this act; and crery evidence upon which that recommendation is on cotton as it was during the past year, and collector to whom any tax upon cotton shall be paid made, then we will have some substantial at the rate imposed while the war continued, a shall mark the bales or other packages upon wbieli

the tax shall have been paid, in such inanner as muy argument to go upon. rate which the last Congress refused to increase

clearly indicate the payment thereof, and shall give It is urged this will be a discouragement to after an animated debate.

to the owner or other person having charge of such cotton culture. If it were a necessity the tax I hope the tax will not be raised; that cot cotton a permit for the removal of the same, stating now fixed should be a permanent tax there ton, a southern production, will not be singled

therein the amount and payment of the tax, the

time and place of payment, and the weight and would be weight in that argument. No one out as the only article upon which we shall marks upon the bales and packages, so that the same supposes the price of cotton will rule lower for || impose increased taxation.

may be fully identified; and it shall be the duty of

every such collector to keep clear and sufficient a year or two to come. It is not the expecta Mr. STEVENS. The gentleman has spoken records of all such cotton inspected or marked, and tion of those who are most directly concerned

of the amount of revenue. I wish to know of all marks and identifications thereof, and of all in the manufacture of cotton goods. If five whether he considers it exceptional, or does

permits for the removal of the same, and of all his cents is not too high now and should prove to

transactions relating thereto; and he shall make full he suppose, if our present rate of tax remains,

returns thereof, monthly, to the Commissioner of be too high when the next Congress revises that amount will be realized ?

Internal Revenue. the internal revenue system it can be reduced. [Here the hammer fell.]

No amendments were offered. .

upon it.

The third section was read, as follows: tax may be collected as near the point of con sible for the fact that the tax has not been paid Sec. 3. And be il further enacted, That the Commis- | sumption as possible. This was the principle sioner of Internal Revenue is hereby authorized to settled by the former Committee of Ways and I believe this amendinent has the sanction designate one or more places in each collection district where an assessor or an assistant assessor and a

Means on questions of this kind; and I am of the Committee of Ways and Means. collector or deputy collector shall be located, and

very desirous that the chairman of the Com Mr. MORRILL. I am not quite sure that I whero cotton may be brought for the purpose of being mittee of Ways and Means shall consent to fully understand the amendment of the gentleweigbed and appropriately marked: Provided. That it shall be lasyful for the assessor or assistant assessor

such liberty in the transactions of commerce man from Massachusetts, [Mr. Hooper.] I and the collector or deputy collector to assess and as would be involved in the authority to make will ask the gentleman if his amendment will cause to be properly marked the cotton wherever it any number of changes of location under the cut off the right of transporting cotton in bond may be in said district, their necessary traveling expenses to and from said designated place, for that.

security of bonds and under-regulations to be from one port to another. purpose, being paid by the owners thereof.

prescribed by the Secretary of the Treasury. Mr. HOOPER, of Massachusetts. There Mr. SHELLABARGER. I move to amend

This is a very heavy tax, and it is going to be has been no power given by the previous secthat section by striking out in the seventh line

very inconvenient to commerce unless you, as tions to transport from one port to another. "the words “lawful for" and inserting in lieu

far as possible, emancipate commerce from The power given in section four is to transport thereof the words "the duty of.” Also, by

unnecessary restrictions; and as the cotton from the district where the cotton is produced inserting at the commencement of the tenth cannot be removed from the district until a to any one other district, meaning to cover the

district from whence the cotton is shipped. line the word "provided;" and also by striking permit is given, let there be free transit from out in the eleventh line the word "being, one point to another in the district.

For instance, cotton produced anywhere in and inserting “be'' in lieu thereof; so that it

Mr. MORRILL. I think if the gentleman Alabama or Louisiana may be sent from the will read :

will read the section he will see that the party district where it is produced to the port of New That the Commissioner of Internal Revenue is

may move the cotton to any other district upon Orleans, from which it is usually shipped, and hereby authorized to designate one or more places in giving the proper bonds or other security. the tax on the cotton can be paid at New each collection district wherean assessor or an assist Mr. KASSON. There may be one removal. Orleans. ant assessor and a collector or deputy collector shall I want more than that.

Mr. WILSON, of Iowa. I would inquire of be located, and where cotton may be brought for the purpose of being weighed and appropriately marked:

The amendment was disagreed to.

the gentleman if the latter part of section five Provided, That it shall be the duty of the assessor or assistant assessor and the collector or deputy col

Section five was then read, as follows:

does not provide that this transportation may

be in bond. The amendment which the genlector to assess and cause to be properly marked the

Sec. 5. And be it further enacted, That it shall be cotton wherever it may be in said district: Provided, unlawful from and after the 1st day of September,

tleman proposes requires the tax to be paid Their necessary traveling expenses to and from said 1866. for the owner, master, supercargo, agent, or

before any person can transport cotton from designated place, for that purpose, be paid by the other person having charge of any vessel, or for any the district. owners thereof. railroad company.or other transportation company,

From • Mr. MORRILL. I have no objection to that

Mr. HOOPER, of Massachusetts. or for any common carrier, or other person, to conamendment. vey, or attempt to convey, or transport any cotton

the district where it is produced. -the growth or produce of the United States--to any The amendment was agreed to.

Mr. WILSON, of Iowa. Yes, sir ; from the point out of the district in which it shall have been

district where it is produced. I understand The fourth section was then read, as follows:

produced, unless each bale or package thereof shall
have attached to or accompanying it the proper

that under the fourth section cotton raised in SEC. 4. And be it further enacted, That all cotton mark or evidence of the payment of the revenue Tennessee may be transported to Charleston, having been weighed and marked as herein provided, tax and a permit of the collector for such removal. and for which permits shall have been duly obtained or the permit of the assessor, as herein before pro

South Carolina, in bond, and the tax there of the assessor, may be removed from the district in

vided, under regulations of the Commissioner of In paid. But under the amendment of the genwhich it has been produced to any one other district, ternal Revenue, subject to the approval of the Sec tleman from Massachusetts (Mr. HOOPER) the without prepayment of the tax due thereon, upon the retary of the Treasury. And any person or persons execution of such transportation bonds or other se who shall violate the provisions of this act in this

tax must be paid before the shipment is made. curity, and in accordance with such regulations as respect shall be liable to a penalty of $100 for each

Mr. HOOPER, of Massachusetts. I beg the shall be prescribed by the Commissioner of Internal balo of cotton so conveyed or transported, or at gentleman's pardon. The amendment allows Revenuc, subject to the approval of the Secretary of tempted to be conveyed or transported, or to impristhe Treasury. The said cotton so removed shall be onment for not more than one year, or both; and all

the shipment to be made from Tennessee to delivered to the collector of internal revenue or his vessels and vehicles employed in such conveyance or

Charleston, But it is confined to one district, deputy forthwith upon its arrival at its point of des transportation shall be liable to scizure and forfeiture the district of Charleston. There the duty tination, and shall remain subject to his control until

þy proceedings in any court of the United States the taxes thereon shall hare been paid; but nothing having competent jurisdiction, And all cotton so

must be paid. When it is shipped from Charlesherein contained shall authorize any delay of the shipped or attempted to be shipped or transported ton to go to the North, to New York for expayment of said taxes for more than ninety days from beyond the collection district in which it was pro ample, a permit or certificate from the collector the date of the permits; and when cotton shall have duced, without payment of the tax, or the execution been weighed and marked for which a permit shall of such transportation bonds and other security, as

at Charleston must be obtained, and shown to have been granted without prepayment of the tax, it provided in this act, shall be forfeited to the United the collector at New York to satisfy him that shall be the duty of the assessor granting such per States, and the proceeds thereof distributed accordmit to give immediate notice of such permit to the

the tax on this cotton had been paid when it ing to the statute in like cases provided. collector of internal revenue for the district to which

was shipped from Charleston. Then the colsaid cotton is to be transported, and he shall also Mr. HOOPER, of Massachusetts. I move lector at New York gives his permit to land it, transmit therewith a statement of the taxes due to amend this section by striking out after the || and after that it is free to be transported any. thereon, and of the bonds or other securities for the payment thereof, and he shall make full returns and words " United States," where they first occur,

where, without imposing upon the railroad, statements of the same to the Commissioner of Inter the words to any point out of,'' and inserting the wagons, orathe vessel the trouble of ascer. nal Revenue.

the words " from any point in;" so that that | taining that the tax has been paid. Nr. KASSON. It strikes me that there is || portion of the section will read, "transport any

Mr. KASSON. Let me ask the gentleman an omission in that section to which I desire cotton, the growth or produce of the United

from Massachusetts whether it will not be necesto call the attention of the chairman of the

States, from any point in the district in which sary in that case to make provision for propCommittee of Ways and Means. It provides | it shall have been produced,'' &c.

erly stamping or certifying the bale as free. We that the cotton shall remain under the control

And I also move to amend by inserting after

have these other provisions requiring that it of the collector or his deputy until "the taxes the words “subject to the approval of the Sec. shall be verified as liable to tax; and now the thereon shall have been paid," but says noth retary of the Treasury," the following: gentleman proposes that at a certain time it ing of the necessary charges of its custody. I

Nor to convey or transport any cotton from any

shall be discharged from that liability. But in move to insept after the word "thereon, in State, in which cotton is produced, to any port or

the same market there will be other bales which the thirteenth line, the words •

or any neces place within the United States without a certificate will be liable to tax; and how will the discrimsary charges of custody thereof."

from the collector of internal revenue of the district
from which it was brought, and such other evidence

ination be made after the cotton once leaves The amendment was agreed to.

as the Secretary of the Treasury may prescribe, that the ship? Mr. KASSON. I now move to strike ont

the tax has been paid thereon; and such certificate Mr. HOOPER, of Massachusetts. In reply

and evidence as a foresaid shall be furnished to the the word "one" where it occurs in the fifth collector of the district to which it is transported,

to that question, I beg to call the gentleman's line, so that the section will read: and his permit obtained before landing, discharging,

attention to the fact that all the cotton has to That all cotton having been weighed and marked or delivering such cotton at the place to which it is

be inspected and marked when the tax is paid, as herein provided, and for which permits shall have transported as aforesaid.

or before it is paid. My object is to provide been duly obtained of the assessor, may be removed from the district in which it has been produced to

As the section now stands, without this for what actually occurs, that in handling these any other district, without prepayment of the tax amendment, no railroad company, or common bales in the course of the different shipments due thereon, &c.

carrier, or any party could transport cotton in these marks become erased. What I propose I would inquire if it was the intention of the any part of the United States without having a | is that after the cotton arrives at New York or Committee of Ways and Means not to allow permit from the collector of the district from elsewhere in the North, it shall be assumed more than one removal.

which the cotton is taken, to make the trans that the tax has been paid although the cotton Mr. MORRILL. The design of the com portation. We have provided in the previous | may not have these marks upon it. mittee was to allow the cotton to be moved sections for the tax on the cotton being paid I am told that now, by the regulation, every from the place of production without pre-pay before it is shipped from the State where the bale of cotton must have attached to it a tag ment of the tax to the port of destination, cotton is produced. When that shipment is showing that the tax has been paid. But in whether it be Savannah, New York, or Boston. made, this amendment proposes that evidence || point of fact those tags get destroyed in the

M:. KASSON. Let me say that an impor shall be had that the tax has been duly paid course of the handling and shipment of the tant question is involved in this matter. It is before the shipment was made. My object is article.

If you should examine the cotton in of very great importance, when you levy a tax that when the cotton arrives at New York, or the factories of New England you would find upon the raw material before it gets into con Boston, or Cincinnati, the transportation of it that nine bales out of ten were without tags, sumption, that you allow the utmost freedom shall be free like that of any other article; that or any other evidence that the tax had been of transit and changing of hands, so that the the railroad that conveys it shall not be respon. paid. Under the bill, as it reads without the

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