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Fitzsimmons thought the American manufacturers would have little to apprehend even if the articles in 1789. question were left without a special duty. Neither spikes nor nails for ship-building were imported; they were generally large and heavy, and were made in the country according to the builder's order. Before the Revolution the people in America were not permitted to erect slitting-mills; they now had several, and were independent of all the world for the materials necessary to carry on the business of nail-making. The duty would draw but little money into the treasury, nor would the omitting it do any material injury. He was willing, however, to allow a small one out of conformity to the policy of protective duties. Tacks and brads were struck out; spikes and nails were taxed one cent per pound. The household manufacture of nails described in this debate has long since been wholly superseded by machinery.

The duty on salt gave rise to a lively debate-forerunner of a great many subsequent congressional discussions on the same fruitful topic. Lawrence proposed six cents per bushel. This was vehemently opposed by sev eral members from the South and West, who urged that great quantities of salt were consumed by cattle-the principal article which the people in the back settlements raised for market. The cost of transportation already made the price excessively high, and to increase it by taxation would produce discontents which might prove dangerous. It was argued, on the other side, that salt, from its universal consumption, was one of the articles most productive in revenue; that the moderate duty proposed could not greatly enhance its price; and that, even allowing a greater proportional consumption of salt by the frontier inhabitants, their less consumption of

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other taxed articles would more than indemnify them for CHAPTER any excess of taxation on this. The duty of six cents was agreed to; a drawback to be allowed on salted pro- 1789. visions and fish exported.

A duty of six cents per pound, intended to be prohibitory, was agreed to on manufactured tobacco, that is, tobacco prepared for chewing. On motion of Carroll of Maryland, who stated that a manufactory of glass had been successfully begun in his state, a duty of ten per cent. ad valorem was imposed on window and other glass, except black quart bottles. On Clymer's motion, a duty of seven and a half per cent. was agreed to on paper, pasteboard, and blank books. Clymer stated that the paper-mills of Pennsylvania produced annually seventy thousand reams of various kinds of paper, which were sold as cheap as they could be imported. Already there were fifty-three paper-mills within the range of the Philadelphia market. A duty of fifty cents per dozen was also agreed to on wool-cards, which, according to the statements of Ames and Clymer, were manufactured in Massachusetts and Pennsylvania as good and cheap as those imported.

With respect to teas, it was proposed to discriminate between those imported from India and China in American vessels, and those imported in foreign vessels, or from other countries than India and China. The object was to encourage the trade with the East Indies, lately opened by some enterprising American merchants, and already prosecuted with good success. More than forty vessels from Massachusetts were already employed in this trade, principally from the port of Salem, and a few others from New York and Philadelphia. Madison thought the trade not worthy of encouragement, since the articles imported were chiefly luxuries not paid for by the ex

CHAPTER port of our own products, but in specie, while long voy

L ages like those to India were unfriendly to the increase 1789. of commerce. To this it was replied by Goodhue and

April 21.

Boudinot that considerable quantities of ginseng (a plant which the Chinese hold in great esteem for its medicinal qualities, and which a French Jesuit missionary in Canada had found growing in the North American woods), also lumber and provisions, were shipped direct to China, while other articles, such as beef, pork, flour, and wheat, were disposed of at ports on this side of China, in order to procure cargoes suitable for that market; so that the imports from China were in fact paid for, in a great measure, by the export of domestic produce. After these explanations the discriminating duty was agreed to.

At the suggestion of Bland and Parker, who stated that coal-mines had been opened in Virginia capable of supplying the whole of the United States, a duty of three cents per bushel was imposed on imported coal.

All the blanks having been filled, Fitzsimmons proposed to allow a drawback on all New England rum exported equivalent to the duty on the molasses from which it was made. This was opposed by Madison as opening

a door to frauds. He thought the advantage derived by the distillers from a free exportation to the several states of the Union quite compensation enough for the duty on molasses. This motion was defeated for the present, but a proposition was agreed to for allowing a drawback of duties on all foreign articles re-exported.

The question of the tariff being thus disposed of, that of duties on tonnage was next taken up. On this subject two important questions arose. What should be the amount of discrimination in favor of American vessels? And, as between foreign ships, should any discrimination be made in favor of those nations having commercial

I.

treaties with the United States? The representatives CHAPTER of Massachusetts, the principal ship-owning state, advocated a very decided discrimination in favor of American 1789. shipping. The duty on American vessels having been fixed at six cents per ton, Goodhue proposed sixty cents as the lowest duty on foreign vessels. This he estimated as amounting to five per cent. on the freight, which he insisted was no more than a fair counterbalance to the additional charges to which American vessels were subjected in foreign ports. The representatives of New York, New Jersey, and Pennsylvania, states less amply provided with vessels of their own, and dependent to a considerable extent on foreign shipping, thought that thirty cents per ton would be discrimination enough. The Southern members, having hardly any ships, wished to reduce the duty to twenty cents. They inclined to regard the proposed discrimination as in effect no more than a tax on freight, and ultimately on produce, for the special benefit of the New England ship-owners.

Fitzsimmons estimated the tonnage employed in the conveyance of American products at about 600,000 tons, one third of which was owned by foreigners; and he doubted very much whether any restrictions would produce, within a very short period, the additional tonnage necessary to supply the whole American trade. The merchants could not invest their capital in ships without withdrawing it from other more essential employments. He inclined to restrict the duty on vessels belonging to nations having treaties with us to one third of a dollar, reserving the higher rate for those not having treaties.

This raised the preliminary question, whether any distinction should be made at all as to foreign nations, and if so, to what extent? The only nations having treaties of commerce with the United States were France,

CHAPTER Holland, Sweden, and Prussia, while by far the larger 1. part of the foreign tonnage employed in the American 1789. trade was British. Some doubts being thrown out as to the policy of any such discrimination, Madison entered with zeal into a defense of it. From long possession, old habits, similarity of laws and manners, identity of language, and other adventitious circumstances, Great Britain had, in his opinion, acquired an undue and unnatural proportion of our trade. He dwelt with emphasis upon the exclusion of American vessels from the British ports in the West Indies, and the other disadvantages to which American ships were subjected under the British navigation laws. The public sentiment in favor of discrimination was decisive. That policy had been adopted, while they possessed the power of legislating on the subject, by Virginia, Maryland, and Pennsylvania. It might obtain from France relaxations in favor of American commerce, which the minister at that court had been long soliciting, and of which there were some favorable prospects. It would be good policy to hold out an inducement to commercial treaties by giving our allies an advantage.

Lawrence regarded the idea as unfounded that there was any thing unnatural or adventitious in the preponderating share of the British in our commerce. That was not a point for the government to settle. If American merchants found it for their interest or convenience to form connections with the subjects of one foreign nation in preference to those of another, why should the government interfere? The prospect of commercial relaxations on the part of France did not seem sufficient reason for a proceeding which might provoke retaliation on the part of Great Britain, and deprive us of the privilege which, in spite of all her restrictions, we enjoy