SEC. 3. And be it further enacted, That, until the thirtieth day of June, one thousand eight hundred and forty-two, the duties imposed by existing laws, as modified by this act, shall remain and continue to be collected; and from and after the day last aforesaid, all duties upon imports shall be collected in ready money; and all credits now allowed by law, in the payment of duties, shall be, and hereby are, abolished; and such duties shall be laid for the purpose of raising such revenue as may be necessary to an economical administration of the Government; and from and after the day last aforesaid, the duties required to be paid by law on goods, wares, and merchandise, shall be assessed upon the value thereof at the port where the same shall be entered, under such regulations as may be prescribed by law. SEC. 4. And be it further enacted, That, in addition to the articles now exempt by the act of the fourteenth of July, one thousand eight hundred and thirty-two, and the existing laws, from the payment of duties, the following articles imported from and after the thirty-first day of December, one thousand eight hundred and thirty-three, and until the thirtieth day of June, one thousand eight hundred and forty-two, shall also be admitted to entry, free from duty, to wit: bleached and unbleached linens, table linen, linen napkins, and linen cambrics, and worsted stuff goods, shawls, and other manufactures of silk and worsted, manufactures of silk, or of which silk shall be the component material of chief value, coming from this side of the Cape of Good Hope, except sewing silk.

SEC. 5. And be it further enacted, That, from and after the said thirtieth day of June, one thousand eight hundred and forty-two, the following articles shall be admitted to entry, free from duty, to wit: indigo, quicksilver, sulphur, crude saltpeter, grindstones, refined borax, emery, opium, tin in plates and sheets, gum arabic, gum senegal, lac dye, madder, madder root, nuts and berries used in dyeing, saffron, turmeric, woad or pastel, aloes, ambergris, Burgundy pitch, cochineal, chamomile flowers, coriander seed, catsup, chalk, cocolus indicus, horn plates for lanterns, ox horns, other horns and tips, India rubber, manufactured ivory, juniper berries, musk, nuts of all kinds, oil of juniper, unmanufactured ratans and reeds, tortoise shell, tin foil, shellac, vegetables used principally in dyeing and composing dyes, weld, and all articles employed chiefly for dyeing, except alum, copperas, bichromate of potash, prussiate of potash, chromate of potash, and nitrate of lead, aqua fortis, and tartaric acids. And all imports on which the first section of this act may operate, and all articles now admitted to entry free from duty, or paying a less rate of duty than twenty per centum ad valorem, before the said thirtieth day of June, one thousand eight hundred and forty-two, from and after that day may be admitted to entry subject to such duty, not exceeding twenty per centum ad valorem, as shall be provided for by law.

SEC. 6. And be it further enacted, That so much of the act of the fourteenth day of July, one thousand eight hundred and thirty-two, or of any other act, as is inconsistent with this act, shall be, and the same is hereby, repealed: Provided, That nothing herein contained shall be so construed as to prevent the passage, prior or subsequent to the said thirtieth day of June, one thousand eight hundred and forty-two, of any act or acts, from time to time, that may be necessary to detect, prevent, or punish evasions of the duties on imports

imposed by law, nor to prevent the passage of any act, prior to the thirtieth day of June, one thousand eight hundred and forty-two, in the contingency either of excess or deficiency of revenue, altering the rates of duties on articles which, by the aforesaid act of fourteenth day of July, one thousand eight hundred and thirty-two, are subject to a less rate of duty than twenty per centum ad valorem, in such manner as not to exceed that rate, and so as to adjust the revenue to either of the said contingencies.

Approved, March 2, 1833.

[SENATE DOCUMENT NO. 340, TWENTY-SEVENTH CONGRESS, SECOND SESSION. JULY 1, 1842.]

"TARIFF OF DUTIES."

The Committee on Manufactures, to whom was referred "so much of the message of the President of the United States of the 7th of December last, as relates to a tariff of duties," and also a part of the message of the President of the 25th of March last, have had the same under consideration, and respectfully submit the following report:

The portion of the message of the 7th of December, referred to the committee, is as follows:

Should it be necessary, in any view that Congress may take of the subject, to revive the existing tariff of duties, I beg leave to say, that, in the performance of that most delicate operation, moderate counsels would seem to be the wisest. The Government under which it is our happiness to live, owes its existence to the spirit of compromise which prevailed among its framers; jarring and discordant opinions could only have been reconciled by that noble spirit of patriotism which prompted conciliation, and resulted in harmony. In the same spirit the compromise bill, as it is commonly called, was adopted at the session of 1833. While the people of no portion of the Union will ever hesitate to pay all necessary taxes for the support of Government, yet an innate repugnance exists to the impositions of burdens not really necessary for that object. In imposing duties, however, for the purposes of revenue, a right to discriminate as to the articles on which the duty shall be laid, as well as the amount, necessarily and most properly exists; otherwise the Government would be placed in the condition of having to levy the same duties upon all articles, the productive as well as the unpro ductive. The slightest duty upon some might have the effect of causing their importation to cease, whereas others entering extensively into the consumption of the country, might bear the heaviest, without any sensible diminution in the amount imported. So also the Government may be justified in so discriminating, by reference to other considerations of domestic policy connected with our manufactures. So long as the duties shall be laid with distinct reference to the wants of the Treasury, no well-founded objection can exist against them. It might be esteemed desirable that no such augmentation of the taxes should take place as would have the effect of annulling the land proceeds distribution act of the last session, which act is declared to be inoperative the moment the duties are increased beyond 20 per cent, the maximum rate established by the compromise act. Some of the provisions of the compromise act, which will go into effect on the 30th day of June next, may, however, be found exceedingly inconvenient in practice, under any regulations that Congress may adopt. I refer more particularly to that relating to the home valuation. A difference in value of the same articles to some extent will, necessarily, exist at different ports-but that is altogether insignificant when compared with the conflicts in valuation, which are likely to arise from the differences of opinion among the numerous appraisers of merchandise. In many instances the estimates of value must be conjectural, and, thus, as many different rates of value may be established as there are appraisers. These differences in valuation may also be increased by the inclination which, without the slightest imputation on their honesty, may arise on the part of the appraisers in favor of their respective ports of entry. I recommend this whole subject to the consideration of Congress, with a single additional remark. Certainty and permanency in any system of governmental policy are, in all respects eminently desirable; but more particularly is this true in all that affects trade and commerce; the operations of which depend much more on the certainty of their returns, and calculations which embrace distant periods of time, than on high bounties, or duties, which are liable to constant fluctuations.

That of the 25th of March, is in these words:

From present indications, it is hardly doubtful that Congress will find it necessary to lay additional duties on imports, in order to meet the ordinary current expenses of the Government. In the exercise of a sound discrimination, having reference to revenue, but, at the same time, necessarily affording incidental protection to manufacturing industry, it seems equally probable that duties on some articles of importation will have to be advanced above 20 per cent. In performing this important work of revising the tariff of duties, which, in the present emergency, would seem to be indispensable, I can not too strongly recommend the cultivation of a spirit of mutual harmony and concession, to which the Government itself owes its origin, and without the continued exercise of which, jarring and discord would universally prevail.

An additional reason for the increase of duties, in some instances, beyond the rate of 20 per cent, will exist in fulfilling the recommendations already made, and now repeated, of making adequate appropriations for the defenses of the country.

In addition to these, there have been referred to the committee various resolutions from the State legislatures and other public bodies, and a vast number of memorials, petitions, etc., setting forth important facts concerning the present depressed condition of the business and labor of the country.

These resolutions and memorials are subject to the examination of the Senate. The facts contained in them are believed to be known by every member of it. They are also believed to be known by nearly the whole people of the country. This renders it unnecessary to embrace them in this report, further than to say, that from these papers, coming from the great body of the American people, and from the general tone of public feeling and of the public press, it is manifest that there is extreme, and almost universal solicitude for such legislation by Congress, as will give early and efficient relief to the country, and that this relief is now only expected through a proper adjustment of the tariff of duties upon imports.

Although an adequate revenue to meet the expenses of an economical administration of the Government, may appear to be the primary object of legislation, yet, under our system, this is derived from foreign productions, the importation of which depends upon the ability of the citizens to purchase and consume them; and, as that ability is controlled by the employment and wages of labor, a consideration of all these subjects must necessarily be included in preparing the system to be adopted.

A plan therefore to answer any one must embrace all of these objects. To give efficient relief, it must have such provisions as will insure sufficient revenue to meet the expenses of the Government, and secure employment and adequate reward to the industry of the country.

It is with these sentiments, and with reference to these objects, that we have examined the subject committed to us, and this examination has satisfied us that the objects can be best attained by pursuing the course indicated by the existing law upon the subject, commonly called the "compromise act;" and the plan submitted in the form of a bill we believe to be in accordance with the spirit of the provisions of that act.

As some of the provisions of the bill do not correspond literally with the recommendations contained in the messages referred to us (although the principal ones are in accordance with their spirit), and as the general character of the bill differs from the recommendations contained in the various memorials and resolutions which have come

to us from those having a deep interest in them, a due respect for all renders it proper that the reasons should be given which have induced us to agree upon the plan now proposed to the Senate for its adoption.

The general satisfaction which was felt throughout the country, with the adjustment which was made of this question in 1833, has commended to us the provisions of the law then enacted, with such modifications as are rendered indispensable by the present wants of the Treasury.

The law of 1833 provides, on the one hand, that the rates of duties upon such articles as come in competition with similar products of our own, should, by biennial reductions of 10 per cent of the excess of duties over 20 per cent, be reduced to that rate; and, on the other hand, that a large amount of imports not thus coming in competition, should be imported free of duty. The small amount of revenue then proposed to be raised, allowed of this broad discrimination between articles which did, and those which did not come in competition with our productions. At that time the debt of the Government was paid. The general policy of making internal improvements by the National Government was arrested, and its ordinary expenses had not then, during any previous presidential term, exceeded the average of thirteen millions a year. Fifteen millions was the highest estimate for future annual expenditures, and this law contemplated raising it all by impost duties, and upon articles similar to those of our own which were called protected articles.

The bill further provides that after the 30th of June, 1842, the revenue should be collected by ad valorem duties.

These two provisions were regarded as concessions made to those who were dissatisfied, as well with the mode of assessing, as with the amount of former duties.

There were other provisions then agreed upon, which were for the better security of important interests of the country, viz:

First. That after the period referred to, "all duties should be collected in ready money."

Second. That such duties should be laid, for the purpose of raising such revenue as might be necessary to an economical administration of the Government.

Third. That the duties required to be paid, should be assessed upon the value of imports in the ports of this country, instead of those of foreign countries; and "under such regulations as may be prescribed by law."

The frauds practiced under the former mode, in the opinion of those for whose protection it was intended, rendered this modification indispensable.

These are the leading provisions of the compromise act. No doubt can be entertained concerning any of them, with the exception of that which declares that "such duties shall be laid, for the purpose of raising such revenue as may be necessary to an economical administration of the Government."

Some question has been made, whether by these expressions the rates of duties were to be raised above 20 per cent when a higher rate should be necessary to raise a revenue sufficient to meet the ordinary expenses of Government; and also whether they excluded a resort to the proceeds of the sales of the public lands, as a part of the means of paying these expenses.

It appears to us to be a fair construction of the language, that such rates of duty were to be imposed, as would raise sufficient revenue for an economical administration of the Government, and that revenue was to be the primary object in imposing duties; and the encouragement of the industry of the country was to be only incidental, and not the leading motive, as it was alleged had been the case in former revenue or tariff laws.

All resort to the proceeds of the sales of the public lands for the purpose of meeting the ordinary expenses of the Government, and all reference thereto is excluded by the language employed, as well as by the fact that a law had been previously passed at the same session for distributing the funds arising from that source among the several States.

Nothing adverse to this can be fairly inferred from the fact that the distribution was for a limited term of years: for it was then believed, as it is now declared on all sides, that should the States once participate in the benefits of that distribution, it would never after, in time of peace, be withdrawn from them.

Believing these general views to be correct, the committee proceeded to prepare the plan contemplated by the bill to carry them into effect, and to that end, first, as far as practicable to ascertain and declare the value of imports upon which duties are to be levied; second, to fix such a general rate of duties as will probably yield the necessary amount of revenue, with such exceptions only, as it was expressly declared would be permitted under this general rule, when the bill was under discussion in 1833.

It is proper to state that the plan of assessing duties upon the value of goods in this country has been objected to. In that portion of the annual message of the President, which was referred to this committee, the opinion is expressed—

That it will be exceedingly inconvenient in practice under any regulation that Congress may adopt. I refer more particularly to that relating to the home valuation. A difference in value of the same article, to some extent will necessarily exist at different ports: but that is altogether insignificant when compared with the conflicts in valuation, which are likely to arise from the differences of opinion among the numerous appraisers of merchandise. In many instances the estimates of value must be conjectural, and thus as many different rates of value may be established as there are appraisers.

The general tone of the memorials presented to the Senate upon this subject is that of decided disapprobation of such an attempt. It is manifest that the great body of producers have believed that the object intended to be attained by this provision can be much better accomplished by the imposition of specific duties. In fact, a very general denunciation of ad valorem duties, is contained in most of them.

Notwithstanding these objections the committee believe that this mode is not only practicable, but indispensable, in order to secure the objects which these memorialists have in view. They have been strengthened in that opinion by the fact that all the many plans proposed by those peculiarly the friends of specific and opposers of ad valorem duties, which we have seen during the present session of Congress, have retained that feature of former laws which leaves the value of the article taxed to be fixed by foreigners interested in defrauding the Government; and thus almost all the important articles