some trouble; but we are troubling everybody with reference to this matter, and are not troubling them any more than we do others. The committee spent a considerable time on the question of sugar plums, and came to the conclusion that a tax of one cent a pound on the whole was the best and surest.

Mr. SUMNER. I should like to make an inof my friend. I should like to know if this is not one of the special articles for a high tax. It is a luxury in general use.

Mr. FESSENDEN. It is so; but then we cannot go on and put on such a very high tax, because all persons have not sufficient capital, and it is not an object to break down all the small dealers. A heavy tax would break them all down. The committee therefore came to the conclusion that, with regard to the revenue, we should dimin

Mr. FESSENDEN. Not so much, I take it. Mr. HOWE. My belief is it will yield a much larger revenue.

Mr. FESSENDEN. The confectioners did not intend it should raise so much.

Mr. HOWE. My recollection differs from that of the chairman, but, of course, I will not speak positively about it. I should have as much confidence in his recollection as my own. If three per cent. ad valorem will not yield sufficient revenue, put on a higher percentage. I am more anxious about the mode of getting at this than the particular sum to be fixed. I think three per cent. is enough; I think it will yield a larger revenue than this; but I am perfectly willing it should be five per cent. I know the great bulk of the candies and confectionery manufactured is of a cheap kind; but still there is a very large amount in value of these costly confections which are consumed only by people who can pay an ad valorem duty without feeling it; whereas the tax of one cent a pound laid on these cheap articles would be paid by the poorer class of consumers and those least able to pay the duties. I cannot conceive any good reason why the ad valorem duty should not be imposed, and I see very strong objection to the imposition of this specific tax.

Mr. FESSENDEN. There is a plausibility in what my friend says in reference to these costly articles; but they form but a very small proportion of the amount. The great amount is in sugar plums, and those things that are sold by weight; sold to everybody in large quantities. Occasionally they get up these showy, costly things, for which they receive five or six dollars, but very few buy them. Perhaps in the city of New York they they are used for parties, dinner parties, or something of that sort; but the whole bulk amounts to very little. I suppose the Senate is hardly aware of the importance of this particular clause. I think, according to a statement made to us, there are about two hundred and fifty millions of pounds annually consumed. At two cents a pound, that would give us $5,000,000 on the single item of confeetionery. The business is immense all over the United States. We reduced the tax to one cent on their statement, which convinced us that it was put too high, as it stands now, in the bill from the House of Representatives. That will make it amount to $2,500,000. If you adopt the three per cent. ad valorem, according to an estimate that the clerk of our committee made, on the statements made by the confectioners themselves, the amount of the tax would be reduced to $1,000,000. The tax of one cent is not burdensome. The only way in which it is troublesome is with reference to this particular point that my friend speaks of. It is some trouble to weigh the article. They can keep an estimate if they please of what they sell. With regard to these delicate matters there is some little risk in weighing them, but care will obviate that. There is no trouble about it. They may weigh the materials before they are put in, and then they can tell the weight of the articles of which the thing is made up. It will give them

Mr. SUMNER. A tax of one cent per pound would not be more than ten per cent. ad valorem, I suppose, on the average.

Mr. FESSENDEN. That is a pretty high tax. Mr. SUMNER. We tax many things that are in the nature of articles of luxury much higher. Mr. FESSENDEN. We tax some things very high, such as spirits and tobacco, which will be used anyhow; but people will not use confectionaries on the same principle.

Mr. SUMNER. It strikes me the people would still use them, and therefore we might double this tax, and perhaps add fifty per cent. to our income from it.

Mr. FESSENDEN. The confectioneries are made mostly-and I am indebted to my friend who sits beside me for the information-from imported sugar, which already pays a high tax.

Mr. SUMNER. I merely wish to call the attention of the chairman to it. I submit entirely to his judgment.

Mr. FESSENDEN. I can only say that the committee considered the whole matter, and on deliberation came to the conclusion to reduce it to

one cent per pound. I have given the reason for it. They may be wrong.

The PRESIDING OFFICER. The question

is on the amendment of the Senator from Wisconsin to the amendment of the committee to strike out the words "one cent," and insert "three per cent. ad valorem."

The amendment to the amendment was rejected. The PRESIDING OFFICER. The question now recurs on the amendment of the Committee on Finance, to strike out "two cents," and insert "one cent;" so that it will read, "on sugar candy and all confectionery made wholly or in part of sugar, one cent per pound."

The amendment was agreed to.

Mr. FESSENDEN. Before going further, I ask the Senate to go back to section sixty-five. It was not the intention of the committee to strike out the provision there with reference to thread manufactured or sold. I will therefore move to reconsider the vote by which that amendment was adopted striking out a large portion of the proviso to that section. What we intended to strike out were the two lines nine and ten, or the most of them, and leave it so as to read:

Provided, That when thread is manufactured

Putting in the word "is" after “thread”—

And sold or delivered exclusively for knitted fabrics, or for weaving or spooling, as provided for in the seventy-first section of this act, &c.

The PRESIDING OFFICER. The Senator from Maine moves to reconsider the vote on the motion to strike out the proviso to the sixty-fifth section, in the following words:

Provided, That when cloth is sold or delivered exclusively for dyeing, printing, bleaching, or to be finished in any other manner, and thread manufactured and sold or delivered exclusively for knitted fabrics, or for weaving or spooling, as provided for in the seventy-first section of this act, the duties shall be assessed on the articles finished and prepared for use or consumption to the party so finishing or preparing the same, and any party so finishing or preparing any cloth or other fabrics of cotton, wool, or other materials, whether imported or otherwise, shall be considered the manufacturer thereof for the purposes of this act.

The motion to reconsider was agreed to.
The amendment was rejected.

The PRESIDING OFFICER. The Senator from Maine now proposes to strike out the words "cloth is sold or delivered exclusively for dyeing, printing, bleaching, or to be finished in any other

manner, and," and to insert the word "is," after the word "thread;" so that the clause will read: Provided, That when thread is manufactured and sold or delivered exclusively for knitted fabrics, &c. The amendment was agreed to.

The Secretary read the next items, as follows: On chocolate and cocoa prepared, one cent per pound. On saleratus, five mills per pound.

The PRESIDING OFFICER. The committee propose to amend this last item by inserting the words" and bicarbonate of soda;" so that it will read, 66 on saleratus and bicarbonate of soda, five mills per pound."

The amendment was agreed to.

The Secretary read the next item, as follows: On starch, made of potatoes, one mill per pound; made of corn or wheat, one and a half mill per pound; made of rice or any other material, four mills per pound.

The PRESIDING OFFICER. No amendment being proposed to this item, the next will be read.

The Secretary read the next item, as follows: On tobacco, cavendish, plug, twist, fine cut, and manufactured of all descriptions, not including snuff, cigars, or prepared smoking tobacco, ten cents per pound."

The PRESIDING OFFICER. The committee propose to amend this clause by inserting the word "and" between the words "snuff" and "cigars," and by striking out the words "or prepared smoking tobacco, ten," and inserting the word "twenty;" so that, if the amendment be agreed to, the clause will read:

On tobacco, cavendish, plug, twist, fine cut, and manufactured of all descriptions, not including snuff and cigars, twenty cents per pound.

Mr. SUMNER. I should like to inquire of the chairman of the committee the reason for that change, striking out "prepared smoking tobacco" in that place. Probably it is introduced in another place.

Mr. FESSENDEN. No, it is not.

Mr. SUMNER. Then I should like to know why it is not to be taxed.

Mr. FESSENDEN. The reason was this: on looking into the subject we became satisfied if we imposed a tax on it there was no way of avoiding frauds; that if we put a different tax upon it, they would just sell one for the other, and we would get the same tax on both of them.

would like to ask my friend. He proposes a Mr. SUMNER. There is another question I change from ten to twenty cents per pound on tobacco. Why would not that article bear a still higher increase? So far as I know, I should be disposed to make it thirty or forty cents.

Mr. FESSENDEN. So would everybody if it would reach the object desired by it. The difficulty with us is this: we raise the article, and therefore we cannot put such a duty upon it as we could if it were an importation. In Great Britain they will not allow a man to raise tobacco there.

Mr. SUMNER. It pays seventy-five per cent. duty in England.

Mr. FESSENDEN. Undoubtedly. There is none raised there, and therefore they can put any duty they please upon it; but as we raise it in our country we cannot do it.

Mr. SUMNER. The question that I desire to ask the chairman, and his answer will satisfy me on the point, is, whether this is the highest tax that can be imposed consistent with our other interests; that is, with the raising of the tobacco?

Mr. FESSENDEN. The committee, on examining the subject, came to the conclusion that it was all it would be expedient to propose at the present time. We acted on the same principle as we did with regard to whisky. The Senator will notice that we double the tax in the bill as it came from the House of Representatives.

Mr. SUMNER. l'observe that; but I think there is no article, perhaps, that we can tax that will bear a higher tax than tobacco in every form.

Mr. FESSENDEN. You cannot go beyond a reasonable point on the subject. At any rate, this will do to begin with. Perhaps we may be able to raise it hereafter, as we hope to do on whisky

and other articles.

Mr. HOWE. I wish to suggest to the Senator from Massachusetts that, as I understand this amendment, if it be adopted it will not exempt this class of tobacco from taxation; but it will be subject to a tax of twenty cents per pound. If the

amendment be adopted, the effect of it is to impose a tax of twenty cents a pound on prepared smoking tobacco.

Mr. FESSENDEN. The Senator is speaking of the tax on the manufactured tobacco. We do not exempt anything.

Mr. SUMNER. So I understand.

The PRESIDING OFFICER put the question, and declared that the noes appeared to have it. Mr. FESSENDEN. Do Senators desire to have the tax at ten instead of twenty cents?

Mr. GRIMES. I do not; but it seems to me there ought to be some distinction between fine cut tobacco, that is used for smoking purposes, made up of the remnants of manufactured tobacco, and which is sold very cheap, and that which is sold at a high price, and manufactured for other purposes.

Mr. FESSENDEN. I do not see how it can be avoided. If the Senator has ingenuity enough to see how a distinction shall be made so that it will not all come in the shape of prepared smoking tobacco and then sell it for chewing, in order to avoid the duty, then, perhaps, I will agree with him; but it cannot be done; and on any of it the tax is none too high.

Mr. GRIMES. I did not suppose there was any limit to the ingenuity of the Committee on Finance. [Laughter.] I suppose they could have devised some way by which this could be reached.

Mr. FESSENDEN. There is a reasonable limit, but my friend goes so far beyond it that we cannot follow him. [Laughter.]

Mr. SHERMAN. I suggest to the chairman of the committee whether there will not be great ease in evading the tax on smoking tobacco entirely. Take the ordinary leaf tobacco when it is prepared, and cut it, without any manufacturing process at all, and it makes good smoking tobacco; and that is the way a great deal of it will be used. I agreed to this amendment in committee, but at the same time I can now see on reflection why there might be a reason for putting a lower tax on prepared smoking tobacco, simply because it is so easy to convert the common leaf tobacco into smoking tobacco; and if the tax is very heavy, twenty or thirty cents a pound, there would be an inducement to the people to take the leaf tobacco, convert it into smoking tobacco, and avoid the tax, because there is no tax on leaf tobacco. I suggest this difficulty.

The VICE PRESIDENT. The question is on the amendment of the committee.

The amendment was agreed to.

The Secretary read the next item, as follows: On tobacco, prepared smoking, five cents per pound. The VICE PRESIDENT. The committee propose to strike out this item.

The amendment was agreed to.

The Secretary read the next item, as follows: On snuff or tobacco, ground dry or damp, of all descriptions, (except aromatic or medical snuff in vials, pots, boxes, or packets,) eight cents per pound.

The VICE PRESIDENT. The committee propose to amend this item by striking out the word "or," after the word "snuff," and inserting manufactures of," and also to strike out "eight," and insert "twenty;" so that it will read:

On snuff manufactured of tobacco, ground dry or damp, of all descriptions, (except aromatic or medical snuff in vials, pots, boxes, or packets,) twenty cents per pound. The amendments were agreed to.

The Secretary read the next item, as follows: On cigars, valued at not over five dollars per thousand, ten cents per pound.

The VICE PRESIDENT. The committee propose to amend this item by striking out "ten, "and inserting "fifteen.'

The amendment was agreed to.

The Secretary read the next item, as follows: On cigars, valued at over five dollars and not over ten dollars per thousand, fifteen cents per pound.

The VICE PRESIDENT. The committee propose to amend this item by striking out "fifteen" and inserting "twenty.

The amendment was agreed to.

Mr. FESSENDEN. An error has occurred in the printing of that item. The word " dollars,' after the word "five," should be stricken out; so as to read, " on cigars, valued at over five and not over ten dollars," &c.

The amendment was agreed to.

Mr. HENDERSON. I should like to ask the chairman of the committee-I suppose he is informed on the point-what is the usual weight of a thousand cigars.

Mr. FESSENDEN. I do not know what the usual weight is. It depends on their size and age. When they are green they weigh more than when they are dry, and large ones weigh more than small ones. It is very different, and I do not know what the average weight is.

Mr. HENDERSON. It strikes me that in imposing this tax, it had much better be done by the box containing a hundred or a thousand.

Mr. FESSENDEN. That matter has been very fully considered both in the House of Representatives and in the Committees of Ways and Means and Finance.

The Secretary read the next item, as follows: On cigars, valued at over ten dollars per thousand, twenty cents per pound.

Mr. FESSENDEN. I move to insert, after the word "ten," the words "and not over twenty;" so that it will read, "on cigars, valued at over ten and not over twenty dollars per thousand," &c. The amendment was agreed to.

The VICE PRESIDENT. The committee propose to amend this item by striking out the word "twenty," and inserting the words "twenty dollars per thousand, and not over twenty-five cents per pound.

Mr. FESSENDEN. That is a mistake. Instead of that, I move to strike out the word "twenty," and insert "twenty-five;" so that it will read, "on cigars, valued at over ten and not over twenty dollars per thousand, twenty-five cents per pound.

Mr. SUMNER. I should like again to call the attention of my friend to that item.

Mr. HOWE. I will suggest to the chairman that his object would be attained by striking out the words " per thousand," and inserting "not

over."

Mr. FESSENDEN. I do not strike out the

words" per thousand." I propose to make it read, "on cigars, valued at ten and not over twenty dollars per thousand, twenty-five cents per pound."

Mr. HOWE. Well, that will do.

Mr. SUMNER. I have been told by persons in whom I place confidence, who are familiar with this article, that it would bear a higher duty than that; that twenty-five cents a pound on a costly cigar is a low tax; that we may tax it still higher, and just as many cigars will be used; and we shall, therefore, get more money. If that is not so, if the evidence is the other way, I have nothing to

say.

Mr. FESSENDEN. I agree with the Senator in his principle in reference to these subjects, but we have already raised the tax very much.

Mr. DIXON. The Senator from Massachusetts speaks of this as a costly cigar. Mr. SUMNER. Yes. There are two kinds less costly mentioned here.

Mr. DIXON. This is one of the cheap kind of cigars. The next is the most costly.

Mr. SUMNER. The next is the most costly, I know.

Mr. DIXON. I will suggest to the Senator from Massachusetts that there will be a great deal of debate on the whole subject of the duty

on tobacco after the amendments of the Committee on Finance are disposed of, and probably he had better defer offering amendments until then.

Mr. FESSENDEN. There is another thing the Senate should consider. We have had advice from all sorts of people on these subjects; and if you put on such enormous duties it increases very much the danger of smuggling, because there will be greater inducements held out.

Mr. POWELL. I will suggest also that if you put any higher tax on these cigars, you will break up all the manufacturing establishments in the United States.

The VICE PRESIDENT. The question is on the amendment proposed by the Senator from Maine.

The amendment was agreed to.

Mr. LATHAM. I should like to ask the chairman of the Committee on Finance what was the object in all these several amendments of putting a duty by the pound instead of by the hundred or thousand.

Mr. FESSENDEN. It was supposed to be more certain.

Mr. LATHAM. Cigars in no instance are ever sold by the pound. They are always sold by the hundred or thousand.

Mr. FESSENDEN. I am perfectly aware of that. They are always sold in that way. The idea was to fix the tax according to the valuation; to find out the value, and then put on a tax by the pound, because it was supposed to be more exact. The House committee examined the whole subject at very considerable length, and we did not know enough about it to change it, and were disposed to take it as it came from the House.

Mr. LATHAM. The committee may be perfectly right; but it strikes me as cigars are purchased by the hundred, that would be the legitimate way of assessing the tax. Cigars weigh very differently. A new cigar weighs more than an old one, because the tobacco becomes drier. I care nothing about it, however.

Mr. FESSENDEN. That may be an argument against the mode; but the question now to be considered is merely the amount of the tax.

The VICE PRESIDENT. The committee propose to insert, after line one hundred and twentyseven, the following:

On cigars, valued at over twenty dollars per thousand, thirty-five cents per pound.

The amendment was agreed to.

The Secretary read the next items, as follows: On gunpower, and all explosive substances used for mining, blasting, artillery, or sporting purposes, when valued at eighteen cents per pound or less, five mills per pound; when valued at above eighteen cents per pound, and not exceeding thirty cents per pound, one cent per pound; and when valued above thirty cents per pound, six cents per pound. On white lead, twenty-five cents per one hundred pounds. On oxyd of zinc, twenty-five cents per one hundred pounds.

On sulphate of barytes, ten cents per one hundred pounds: Provided, That white lead, oxyd of zine, and sulphate of barytes, or any one of them, shall not be subject to any additional duty in consequence of being mixed or ground with linseed oil, when the duties upon all the materials so mixed or ground shall have been previously actually paid. On all paints and painters' colors, dry or ground in oit, or in paste with water, not otherwise provided for, five per cent. ad valorem.

The VICE PRESIDENT. The committee having proposed no amendments to these items, the next will be read.

The Secretary read the next items, as follows: On corn brooms, three per cent. ad valorem. On wooden pails, tubs, buckets, casks, and churns, three per cent. ad valorem.

On straw, palm leaf, and grass hats, caps, and bonnets, three per cent. ad valorem.

On hats and caps made of fur felt, wool, cotton, glazed muslin, India rubber, or silk, wholly or in part, three per cent. ad valorem.

On steel hoop skirts, or skirts of metal or other material, three per cent. ad valorem; on clothing ready made, three per cent. ad valorem.

The VICE PRESIDENT. The committee proposes to strike out these several items. The question will be put on all together if there be no objection.

The amendments were agreed to.

The Secretary read the next items, as follows: On clock movements made to run one day, five cents each; made to run more than one day, ten cents each. On pins, solid head or other, five per cent, ad valorem. On umbrellas and parasols made of cotton, silk, or other material, five per cent. ad valorem.

The VICE PRESIDENT. The committee hav

ing proposed no amendments to these items, the

next will be read.

The Secretary read the next item, as follows: On screws, commonly called wood-screws, two inches or over in length, one and a half cent per pound; less than two inches in length, two cents and five mills per pound.

The VICE PRESIDENT. The committee propose to amend this item by striking out after the word "screws" the words "two inches or over in length," and after the word "pound," in the one hundred and sixty-sixth line, the words "less than two inches in length, two cents and five mills per pound;" so that it will read, "on screws, commonly called wood-screws, one and a half cent per pound."

The amendment was agreed to.

The Secretary read the next item, as follows: On railroad iron, and all other iron advanced beyond slabs, blooms, or loops, and not advanced beyond bars or rods, and band, hoop, and sheet iron, not thinner than No. 13 wire-gauge, and plate iron not less than one eighth of an inch in thickness, $150 per ton; on band, hoop, and sheet iron thinner than No. 18 wire-gauge, plate iron tess than one eighth of an inch in thickness, and cut nails and

spikes, two dollars per ton: Provided, That bars, rods, bands, loops, sheets, plates, nails, and spikes, manufactured from iron upon which the duty of $1 50 has been Jevied and paid, shall be subject only to a duty of fifty cents per ton in addition thereto, anything in this act to the contrary notwithstanding. On stoves and hollow ware, $150 per ton of two thousand pounds; cast iron used for bridges, buildings, or other permanent structures, one dollar per ton: Prociled, That bar iron used for like purposes shall be charged no additional duty beyond the specific duty imposed by this act. On steel in ingots, bars, sheets, or wire not less than one fourth of an inch in thickness, valued at seven cents per pound or less, four dollars per ton; valued at above seven cents per pound, and not above eleven cents per pound, eight dollars per ton; valued above eleven cents per pound, ten dollars per ton.

The VICE PRESIDENT. The committee propose to amend this item by inserting in the one hundred and seventy-fourth and one hundred and seventy-fifth lines, the words, "on railroad iron, rerolled, seventy-five cents per ton."

The amendment was agreed to.

The Secretary read the next item, as follows: On paper of all descriptions, including pasteboard and binders' boards, three per cent. ad valorem.

The VICE PRESIDENT. The committee propose to strike out this item.

Mr. FESSENDEN. I will state, as an explanation to the Senate, that they will find a good many of these articles stricken out entirely. The reason is to avoid repetition. There is a clause at the end of the section which puts upon all manufactures not enumerated, three per cent. ad valorem. It therefore was not necessary to specify them here. The reason it came to be so was this: as the bill was reported by the committee to the House, specific duties were put on these articles; but the House amended it by putting the duty at three per cent. ad valorem instead of striking them out, and leaving them to come under the general clause. We strike them out, because they are provided for in another place.

The amendment was agreed to.

The Secretary read the next items, as follows: On soap, castile, palm oil, erasive, and soap of all other descriptions, white or colored, except soft soap and soap otherwise provided for, valued not above three and a half cents per pound, one mill per pound; valued above three and a half cents per pound, five mills per pound.

On soap, fancy, scented, honey, cream, transparent, and all descriptions of toilet and shaving soap, two cents per pound.

The VICE PRESIDENT. The committee propose no amendments to these items. The next will be read.

The Secretary read the next item, as follows:
On salt, four cents per one hundred pounds.

The VICE PRESIDENT. The committee propose to amend this item by striking out "four," and inserting "six."

Mr. FESSENDEN. I hope the Senate will not agree to that amendment. I moved it in committee, but I have become satisfied it ought not to be made. It would be very oppressive to the manufacturers of salt.

The amendment was rejected.

The Secretary read the next item, as follows: On pickles and preserved fruits, and on all preserved meats, fish, and shell-fish in cans or air-tight packages, five per cent. ad valorem.

The VICE PRESIDENT. No amendment being proposed by the committee to this item, the next will be read.

The Secretary read the next item, as follows: On blacking and paste, usually called shoe or boot blacking, of all descriptions, three per cent. ad valorem.

The VICEPRESIDENT. The committee propose to strike out this item.

Mr. ANTHONY. Is that included in the general clause?

The amendment was agreed to.

Mr. FESSENDEN. Before proceeding further, I will move to reconsider the vote striking out lines one hundred and ninety-six and one hundred and ninety-seven, on a suggestion that has been made to me. Those lines are the following:

On paper of all descriptions, including pasteboard and binders' boards, three per cent. ad valorem."

On looking at the clause to which I referred, at the end of the section imposing a duty of three per cent. ad valorem on manufactures not enumerated, I find that the manufacture of paper is not included, and there is no duty on it at all, not even this three per cent. ad valorem. I therefore

move to reconsider the vote striking out those lines. I think they should stand in the bill.

Mr. SUMNER. I have my doubts about that. I doubt whether there will be any considerable income obtained from that tax; and it will be in its character a sort of tax on knowledge. Those taxes have been very much discussed in Europe, and they are now beginning to be exploded; they are passing away; and I think we should hesitate long before we take them up.

Mr. POWELL. This is a tax on pasteboard. I did not know that that was a tax on knowledge. [Laughter.]

Mr. FESSENDEN. It is on the knowledge box. [Laughter.]

Mr. SUMNER. The item reads, "On paper of all descriptions, including pasteboard and binders' boards, three per cent. ad valorem." Pasteboard and binders' boards, of course, would include the binding of books, and would be a tax therefore on books. My impression is, we had better put that off, at least for the present. I should like to put it on cigars and whisky and such things, and take it off books.

Mr. FESSENDEN. If we could each of us follow our own particular inclinations and tax according to our own appetite or want of appetite, it would be a very convenient thing; but we are merely looking to raise revenue, and we do not consult knowledge or the knowledge box, or make any particular exceptions in those cases, except putting all things as nearly upon a level as possible. There was no reason in the world that we could see why there should not be a tax on paper as well as other articles. If, in the course of time, it turns out from experience that under a change of circumstances we can raise the necessary amount of money on luxuries, and not on what we call necessities, we can change it. At present it is experimental, and we have not information to enable us to decide. There is no tax on books at all, or anything of that sort. This material is used in a great many other different ways and purposes. Mr. DOOLITTLE. The next line contains a tax on soap, which would be a tax on cleanliness. [Laughter.] I think it will hardly do, therefore, to strike out all these taxes.

Mr. SUMNER. I must oppose this tax. Mr. FESSENDEN. The Senator will see on page 98, that printed books, magazines, pamphlets, newspapers, reviews, and all other similar printed publications are expressly excepted from any tax. That is as large an exception as we ought to make in favor of knowledge.

Mr. SUMNER. But then the Senator will perceive that paper enters into what is called the manufacture of the printed book.

Mr. FESSENDEN. Then he would not tax printers' ink, I suppose. All sorts of labor enter into it. Everything enters indirectly into the manufacture of the printed book, even the clothes the printer wears. If we except the books, I think we make as much exception in favor of the Senator's specialty-I believe that is the word-as I think we can afford.

Mr. SUMNER. I say nothing of any specialty. The question is one of public interest. I understand there is no trade that has suffered more by this war than the book trade.

Mr. FESSENDEN. We except the books. Mr. SUMNER. But then paper, as I said, enters into the manufacture of books; and besides, not much, it seems to me, would be gained by the tax. It is not a very large item to the Government, but it would be of essential benefit to the manufacturer of books. I therefore hope the amendment will not be reconsidered.

Mr. FESSENDEN. Then why not except also the cloth used in binding?

Mr. SUMNER. That is going too much into detail. I hope, therefore, the amendment reported by the committee to strike out these lines will be allowed to remain.

The VICE PRESIDENT. The Chair will put the question again on the amendment, as reported by the committee. The question is on the amendment to strike out lines one hundred and ninetysix and one hundred and ninety-seven, as follows: On paper of all descriptions, including pasteboard and binders' boards, three per cent. ad valorem. The amendment was rejected.

The Secretary read the next items, as follows: On glue and gelatine of all descriptions, in the solid state, five mills per pound.

On glue, and cement made wholly or in part of glue, to be sold in the liquid state, twenty-five cents per gallon. On patent or enameled leather, five mills per square foot. On patent japanned split, used for dasher leather, four mills per square foot.

On patent or enameled skirting leather, one and a half cent per square foot.

On all sole and rough or harness leather, made from hides, imported cast of the Cape of Good Hope, and all damaged leather, five mills per pound.

The VICE PRESIDENT. The committee propose no amendment to the items.

Mr. GRIMES. I should like to inquire of the chairman of the Committee on Finance why it is that there is a less tax on sole leather made from hides that are brought from east of the Cape of Good Hope.

Mr. FESSENDEN. It is much cheaper leather. The Secretary read the next item, as follows: On all other sole or rough leather, hemlock tanned, eight mills per pound.

The VICE PRESIDENT. The committee propose to amend this item by striking out "eight,' and inserting "and harness leather, seven;" so that it will read, "on all other sole or rough leather, hemlock tanned, and harness leather, seven mills per pound."

The amendment was agreed to.

The Secretary read the next items, as follows: On all sole or rough leather, tanned in whole or in part with oak, one cent per pound.

On all finished or curried upper leather, except calf skins, made from leather tanned in the interest of the parties finishing or currying such leather not previously taxed in the rough, one cent per pound.

The VICE PRESIDENT. The committee having proposed no amendment to these items, the next will be read.

The Secretary read it, as follows:

On bend, but, and harness leather, one cent per pound.

The VICE PRESIDENT. The committee propose to amend this item by inserting the word "and" after the word "bend," and striking out the words "and harness;" so that it will read, "on bend and but leather, one cent per pound." The amendment was agreed to.

The Secretary read the next item, as follows: On offal leather, five mills per pound.

The VICE PRESIDENT. The committee propose no amendment to this item, and the next will be read.

The Secretary read the next item, as follows: On tarred or oil dressed leather, two and a half cents per pound.

The VICE PRESIDENT. The committee propose to amend this item by striking out the words "tarred or," and also the words "two and half," and inserting" and deer skins, dressed or smoked, two;" so that it will read, "on oil dressed leather and deer skins, dressed or smoked, two cents per pound."

The amendment was agreed to.

The Secretary read the next items, as follows: On tanned calf skins, six cents each.

On morocco, goat, kid, or sheep skins, curried, manufactured, or finished, four per cent. ad valorem: Provided, That the price at which such skins are usually sold shall determine their value.

The VICE PRESIDENT. The committee propose no amendments to these items. The next will be read.

The Secretary read the next item, as follows: On buck skins, tanned or dressed, two dollars per dozen. The VICE PRESIDENT. The committee propose to strike out this item.

The amendment was agreed to.

The Secretary read the next item, as follows: On doe skins, tanned and dressed, one dollar per dozen. The VICE PRESIDENT. The committee propose to strike out this item.

The amendment was agreed to.

The Secretary read the next item, as follows: On deer skins dressed and smoked, six cents per pound. The VICE PRESIDENT. The committee propose to strike out this item.

The amendment was agreed to.

The Secretary read the next items, as follows: On horse and hog skins tanned and dressed, four per cent.

ad valorem.

On American patent calf skins, five per cent. ad valorem. The VICE PRESIDENT. The committee propose no amendments to these items. The next will be read.

The Secretary read the next items, as follows: On patent or enameled cloth, three per cent. ad valorem. On machine belting of all kinds, a duty of three per cent. ad valorem.

The VICE PRESIDENT. The committee propose to strike out both these items.

The amendment was agreed to.

The Secretary read the next item, as follows: On conducting hose of all kinds for conducting water or other fluids, a duty of three per cent. ad valorem.

The VICE PRESIDENT. The committee propose no amendments to this item. The next will be read.

The Secretary read the next item, as follows: On wine, made of grapes, five cents per gallon. The VICE PRESIDENT. The committee propose to strike out this item.

Mr. WILSON, of Massachusetts. I should like to know why that is to be stricken out.

Mr. SHERMAN. I will state that there are about ten thousand acres of land in Ohio, Missouri, and California on which the experiment is being tried whether or not we can make wine from the grape. So far, it has been unprofitable to nearly every one engaged in it. It is rather an amateur employment; but I hope it will be developed into an important branch of industry. We thought on the whole, as the tax would be very small, not amounting to $10,000, and the whole production being, I believe, stated at about two millions, and but a small amount would be collected from a great number of persons, that it was better to impose no tax on it, at least for the present.

Mr. HOWE. I am not going to argue the question; but I wish simply to say that I did not concur in the amendment in committee, and shall not concur in it in the Senate. I see no reason in the world why this tax should not be put on, and why it should not be raised four or five times this

amount.

Mr. SHERMAN. I wish to remark that the wine should be put on the same footing as cider or the expressed juice of other articles. This is a tax, and about the only tax on agricultural production. It is a direct tax upon the grape. There is no more propriety in taxing the wine, which here is the simple juice of the grape, than in taxing the apple or the juice of the apple. It is a mere experiment thus far. The tax would have to be collected from a great number of small dealers, who probably cultivate a single acre, or two or three acres, mostly Germans in Missouri and Ohio. It would yield but a very small amount; it would be scarcely worth collecting; and I trust we will strike it out. The sellers of this wine, as well as the sellers of other spirits, pay a license, and in that way you get a tax; and when it is manufactured into anything else it will be taxed three per cent, ad valorem just like any other manufactures. As it is now by the House bill, it will be a tax on agricultural production, and the only one contained in the bill that I now remember, where the whole value consists simply in expressing the juice of an agricultural production-a mere experiment.

Mr. GRIMES. The Committee on Finance have stricken out that provision of the bill which levied a tax upon coguiac brandy manufactured out of whisky that kills at forty rods everywhere, [laughter;] and however wisely or unwisely they acted in that regard, I think they have acted very wisely in striking out this proposition in the House bill to tax wine from the pure grape. I should regard it as the greatest boon that could be conferred upon this country if we could stimulate this manufacture, so that wine will be as common in the country as cider used to be in New England when I was a boy. If you are going to tax the man who has a quarter of an acre or half an acre for a vineyard-for wherever they are cultivated they do not average an acre-I cannot for my life conceive why, if you are going to tax the production of that acre or half acre, you should not also tax the cider that is produced from the orchard of the farmer in New England and elsewhere. You exempt them. Why not exempt this? I think neither of them ought to be taxed. I think it is the policy of the Government to stimulate this production.

Mr. HOWE. I think I have as extreme an appreciation of the value of this article as my friend from Iowa. I certainly do not mean to dis

parage the production of it. I think myself it is one of the greatest blessings in the country, except perhaps whisky. [Laughter.] But the argument in favor of taxing whisky, as I understand it, is not that you want to discourage the culture of corn or rye, which enters into the manufacture of it, but you say it will not be discouraged. You say the man who drinks it will continue to drink it, although you have a tax upon it of fifteen cents a gallon. Now, your inference is that a man will not drink wine if there is a tax of five cents upon it. Senators talk about this being a tax on agriculture. None of the taxes are to be paid really by the parties who advance them to the Government. They do not come out of the incomes of the manufacturers at all. They advance the money to the Government, and the consumers of the article repay it to the manufacturer. I cannot believe for a moment that the distinguished Senator from lowa will drink any less of this blessing, imbibe it any the less because it pays a duty of five cents a gallon, or a duty of twenty-five cents a gallon. I do not understand upon what principle you should discriminate in favor of this particular liquid. I am perfectly willing you should put a tax on cider, if you think it worth while. I have not the slightest objection. You put it on tea and coffee.

Mr. DAVIS. What does this wine sell for? Mr. HOWE. From four to eight dollars a gallon. It depends upon its age, I suppose, in a great measure. I am not familiar with the process; for everybody here knows my habits, I take it. I do not drink wine or other liquors.

Mr. GRIMES. I never drank a pint of it in my life. I do not say that, though, to exculpate myself from the insinuation of the Senator from Wisconsin. But the value of this article is over-estimated by the Senator about fourfold. There is a good deal of it manufactured in my immediate vicinity. There are some thirty or forty thousand gallons manufactured in the town where I happen to live. When it is manufactured it averages from eighty cents to a dollar a gallon; and the persons who manufacture it are hardly able to hold their heads above the waves. It is manufactured in small amounts. A German will have an eighth of an acre; another a quarter of an acre; and they manufacture a little wine, and they have a common wine cellar where it is preserved. It will be a very onerous tax upon all that class of our citizens, if every gallon of wine they have manufactured has got to be measured out and a tax levied on it. You had better put ten times the amount of the tax on something else. It is not confined to the German population but is extending to the American population. I would rather myself put a hundred fold the same amount of tax on some other article produced by our people than put it on this article.

The VICE PRESIDENT put the question on

the amendment of the committee to strike out the item and declared that the ayes appeared to have it. Mr. HOWE. I call for a division. ["Oh, no!"] There is a quorum present.

Mr. WILSON, of Massachusetts. Let it stand until we go over the bill again.

Mr. HOWE. Very well. Then I shall try it again.

The amendment was agreed to.

The Secretary read the next item, as follows: On varnish, made wholly or in part of gum copal or other gums or substances, five per cent. ad valorem.

The VICE PRESIDENT. The committee propose no amendment to this item, and the next will be read.

The Secretary read the next item, as follows: On furs of all descriptions, when made up or manufactured, three per cent. ad valorem.

The VICE PRESIDENT. The committee propose to strike out this item.

The amendment was agreed to.

The Secretary read the next item, as follows:

On cloth and all textile or knitted or felted fabrics of cotton, wool, or other materials, a duty of three per cent. ad valorem: Provided, That when the cloth is sold or delivered exclusively for dyeing, printing, bleaching, or to be finished and prepared in any other manner, the duty shall be assessed on the article so finished and prepared for use or consumption; and thread or yarn manufactured and sold or delivered exclusively for knitted fabrics, or for weaving, when the spinning and weaving for the manufacture of clothi of any kind are carried on separately, shall not be regarded as manufactures within the meaning of this act; but all fabrics of cotton, wool, or other material, whether woven, knit, or felted, when finished for sale, shall be regarded as

manufactures, and be subject to the duty as above of three per cent. ad valorem.

The VICE PRESIDENT. The committee propose to add, after the word "materials," in the two hundred and fifty-ninth line, the words, "before the same has been dyed, printed, bleached, or prepared in any other manner.

The amendment was agreed to.

The VICE PRESIDENT. The committee further propose to amend by striking out all after the words "provided that," in the two hundred and sixty-second line, down to and including the word "and," at the end of the two hundred and sixty-sixth line, in the following words:

When the cloth is sold or delivered exclusively for dyeing, printing, bleaching, or to be finished and prepared in any other manner, the duty shall be assessed on the article so finished and prepared for use or consumption; and. The amendment was agreed to.

Mr. FESSENDEN. In the two hundred and seventy-third and two hundred and seventy-fourth lines, the words "when finished for sale" should be stricken out, because the duties are chiefly imposed upon it before it is finished for sale. I move to strike out those words.

The amendment was agreed to.

The Secretary read the next item, to which no amendment was proposed, as follows:

On all diamonds, emeralds, and all other jewelry, a tax of three per cent. ad valorem.

The VICE PRESIDENT. The clause which will next be read the committee propose to strike

out.

The Secretary read, as follows:

On and after the 1st day of May, 1862, there shall be levied, collected, and paid, a tax of one cent per pound on all cotton held or owned by any person or persons, corporation, or association of persons; and such tax shall be a lien thereon in the possession of any person whomsoever. And further, if any person or persons, corporation, or association of persons, shall remove, carry, or transport the same from the place of its production before said tax shall have been paid, such person or persons, corporation, or association of persons, shall forfeit and pay to the United States double the amount of such tax, to be recovered in any court having jurisdiction thereof: Provided, however, That the Commissioner of Internal Revenue is hereby authorized to make such rules and regulations as he may deem proper for the payment of said tax at places different from that of the production of said cotton:" And provided further, That all cotton owned and held by any manufacturer of cotton fabrics on the 1st day of May, 1862, and prior thereto, shall be exempt from the tax hereby imposed.

Mr. GRIMES. I should like to know why this item is stricken out; why we are not going to tax cotton as well as tobacco and other agricultural products?

Mr. COWAN. It is raw material.
Mr. GRIMES. Is not tobacco?

Mr. FESSENDEN. The bill is predicated upon the idea of taxing manufactures and not the raw material. I think this is the only exception, unless you consider coal a raw material. The items of coal and cotton were put in in the House of Representatives. They were neither of them reported from the Committee of Ways and Means, as I understand; the House put in both. The Committee on Finance have retained the tax on coal and struck out that on cotton. Coal is worth nothing until it is actually taken out of the earth; and digging it and preparing it may be considered, perhaps, a manufacture; but with regard to cotton there was another consideration. We put a tax upon all manufactures of cotton; and the House of Representatives, although they gave a drawback on manufactures and put a tax upon cotton, did not give a drawback upon the cotton; that is to say, they did not give the drawback of the one cent, which is the amount of the tax on the raw material, though they did give a drawback on the cotton itself when exported unmanufactured. It will be observed at once how that would operate. If you gave a drawback equal to the tax laid on the manufactured article and taxed the cotton here and gave a drawback on unmanufactured cotton, the result would be that the foreign manufacturer would get the benefit of it; he would not pay the one cent, and we should. That is not a very desirable result, certainly. I suppose that the thing might be obviated very readily, so far as that is concerned, by not giving any drawback upon the raw cotton, but giving a drawback on the cotton when manufactured. Our manufactures do not go out of the country to a very large extent, so that then the cent would apply not only to colton used in this country but elsewhere, and we

should have the benefit of the drawback upon it when it was exported in a manufactured state. I do not know but that that would be the best way to accomplish the purpose. It is for the Senate to judge. If the Senate conclude to put a tax on cotton, they will of course agree, I presume, that there shall be no drawback on the raw cotton exported, and they will agree, too, that there shall be a drawback on that same cotton when manufactured, in order to protect ourselves. To impose this tax would violate the principle of the bill, and perhaps it may be advisable to violate it in this particular instance, as the House of Representatives did. It is for the Senate to judge. I confess it is a matter about which I have had very great doubt.

There is another thing to be considered in reference to the political state of the country. The raising of cotton will be for some years, I suppose, in rather a bad condition after we succeed in getting back the cotton States, and they return to their allegiance. The business of cotton raising will be in rather a depressed condition for some years, probably, until it gets up to its former standard; and therefore it was thought advisable not to put any particular burden upon it at the present time. The Senate will judge how far this consideration has any force.

all "ginned cotton held or owned by any person or persons," &c.

Now, sir, of all the provisions in the bill, I should regret most to see this one imposing a tax upon cotton stricken out. It is the very article, it seems to me, for a thousand reasons that might be given, upon which the burden of taxation should fall.

Mr. ANTHONY. Would you allow a drawback?

Mr. TRUMBULL. I should be opposed to a drawback upon cotton, and I am opposed to it upon tobacco too. I would not allow a drawback upon any article which is exported, unless it be one that we cannot export in case the tax is levied upon it before it is exported. In such a case, where an article was raised in this country which entered into consumption in other countries and was exported to a considerable extent, which was also raised in other countries, and where the export trade would cease in case it was subjected to any burdens here, there would be a reason for allowing a drawback; but I do not understand that to be the case with tobacco, and I am quite sure it is not the case with cotton. Therefore, I trust that this provision of the bill will not be stricken out.

Mr. SHERMAN. I think with the Senator from Illinois we ought to keep this tax in. I voted for it in the committee. I believe we were about equally divided there, and therefore the report of the committee amounts to nothing as indicative of the sense of the committee. Cotton is really a manufactured article just as much as whisky. In the process of separating the seed, of ginning it, of baling

as much labor bestowed upon the article of cotton after it is produced as there is in converting corn into whisky, so that I think you may tax cotton upon the principle of considering it, when baled and prepared for commerce, as an article of man

Mr. FESSENDEN. None at all.

Mr. ANTHONY. I should think that would be the best mode of disposing of the subject, for then we should make foreign countries pay a very large portion of the interest on our debt, and some of them certainly ought to do so.

Mr. TRUMBULL. I certainly hope this amendment will not prevail. I think, of all other articles, we should tax cotton. There are several reasons for it. We produce that article more cheaply in this country than in any other. It is true, a good portion of the cotton crop is exported, but the laying of a small tax upon it will not prevent its exportation. We can afford to do so, and I think there is no such constitutional difficulty as was suggested by the Senator from Rhode Island. It seems to me very clear that we may lay a tax upon cotton and it will not be an export duty, because we lay the tax not upon the cotton that is exported simply, but upon all cotton, and the duty has to be paid, of one cent per pound, I bclieve, as the bill passed the House of Representatives. That one cent a pound is to be paid whether the cotton is exported or not; it does not depend upon the export of it; but if it was one cent a pound upon such cotton as was exported, that might be an export duty. This is not a tax for the pose of obtaining a duty from the export of the article, because the same revenue is paid whether it is exported or not. Nor is cotton, in the shape that it is spoken of in this bill, exactly a raw material. We tax twisted tobacco.

pur

Mr. FESSENDEN. We do not tax the leaf tobacco.

Mr. TRUMBULL. What is twisted tobacco? Just the leaves dried, and the stem taken out and twisted by hand.

Mr. ANTHONY. Cotton is ginned.

Mr. TRUMBULL. Cotton is ginned. It goes through, I think, a much greater process to prepare it for market. In fact, this ginning is done by machinery. There is really a manufacture of the raw material to prepare the article for market, and I think a manufacture to a much greater extent than that of tobacco in the twist form. You simply take out the stem of the tobacco after the leaves are in a certain state, and twist it up by hand; whereas to prepare your cotton it has to be ginned and baled before it is ready for market.

think we might state with propriety in this clause, in case it should be retained in the bill, that a tax of one cent a pound should be laid upon

and so are very many articles that you have taxed in this bill; and the processes gone through in changing the article from its crude state, ginning it, baling it, preparing it, I think make it fairly a manufactured article, so that it may be fairly taxed as a manufactured article without discriminating against it or selecting cotton as a raw production. In one sense, too, it is a raw production, for there is no foreign substance mixed with it; but yet it is a manufactured production, because after it is taken from the field it must be worked over, must be ginned, and passes through two or three pro

cesses.

When our country is restored, as I hope it will be after this war is over, the annual production of cotton will probably be increased rather than diminished, because the stock on hand is almost exhausted. Last year the amount of production was three million one hundred and twenty-seven thousand five hundred and sixty-eight bales, equal to twelve hundred and fifty-one million twenty-seven thousand two hundred pounds. A tax of one cent a pound on that would yield $12,510,272. It is about the only tax that will be paid in the southern States. All the rest of

these taxes are in the nature of taxes on manufactures, which will be paid chiefly in the northern States, or taxes on whisky and tobacco and agricultural productions of the western States, and I never could see any reason why there should not be a reasonable tax put upon cotton. I would not select out the productions of the southern country simply because it is in a state of rebellion now, and tax them oppressively; on the other hand, I would rather avoid putting any taxes on them as the cotton States are not represented here; but we are bound to legislate for them, and legislating for them as I would for my own constituents, I think it but right to say that their productions shall yield the same revenue as our own, and I see no objection to this tax.

In regard to the difficulty with respect to our own manufacturers, there must be an amendment made to the bill as it came from the House of Representatives, so as to refuse the drawback on exported cotton; otherwise it would be a discrim- || ination against our own manufacturers to the extent of one cent a pound. But that can very easily be provided for by the simple insertion of a word in a section.

Mr. FESSENDEN. You have to go further than that. You have to allow them the duty on raw cotton as well as on everything that goes into

the manufacture; not only the three per cent. that is put on the manufactured article, but the additional cent a pound on the cotton as a drawback.

Mr. SHERMAN. I think it would put the American manufacturer on a precise footing with the foreign manufacturer if we inserted the words except cotton," in section one hundred and eleven, so as to make it read, "that from and after the date on which this act takes effect, there shall be an allowance or drawback on all articles exported except cotton." I think that puts them on a footing of equality; then both our own manufacturers and the British manufacturers would pay a tax of one cent; and then with such modifications of the tariff law as will be necessary in order to make the foreign manufacturer pay on the manufactured articles a corresponding duty with the tax imposed by this bill on domestic articles, I think it will leave the foreign and domestic manufacturer on precisely the same footing.

Mr. FESSENDEN. In conversation with a gentleman who is perfectly familiar with this whole subject, I learn one great difficulty in this matter, which is a difficulty in reference to the manufactures of cotton in the eastern States. He says that if you lay this duty in these terms, it will operate very unequally, and so unequally as to stop what are called the coarse manufactures; for though the duty is the same on all cotton, the cotton is of very different degrees and different values and different prices, and it requires a larger quantity of some cotton than of others to produce a yard. From coarse cotton they manufacture coarse goods, which they sell for six or eight cents a yard. Out of other cotton they manufacture much finer goods, which command a higher price. The result of this duty would be, in practice, that on coarse goods which sell for a low price, the tax would be fifteen or twenty per cent., while on the finer goods it would be a very small percentage. That is the judgment of the gentleman to whom I refer; and I have no doubt it is given with entire honesty. He would not give any but a correct opinion, such as he really entertains. A very large number of the mills in New England are engaged in making coarse cotton goods, and the effect of this tax would be that they could not stand the competition. They could not continue to manufacture and sell, for they could not make the addition to the price that would be necessary to compensate for the tax, and the burden would be so heavy as to entirely stop their operations, if this tax is put on in addition to the three per cent. That is the argument; and the Senate will see that the tax is one cent a pound without reference to the quality.

Mr. TRUMBULL. That could be remedied by having it one cent a pound on cotton of the value of twenty cents, if you please, and one and a half on that of thirty cents. That would obviate the objection so far as there is a difference in the quality of the cotton.

Mr. ANTHONY. I think if this provision is retained, the bill should be altered in other respects to correspond, and there should be a reduction on the manufactured cottons to correspond with the amount of tax on the raw material. But the provision that the Senator from Illinois suggests, I think, would not meet the case, because the difference in tax upon the manufactured article does not depend so much upon the difference in the price of cotton, which is not very great considering the different grades, but the different amount of cotton put in different kinds of goods. Some kinds of goods have three or four yards to the pound, and some of them have five or six or seven yards to the pound. That would be the difficulty. But I think that if this clause is retained, there should be a reduction on the tax put upon cotton goods to correspond with the amount of tax that our own manufacturers have to pay on the raw material.

You

Mr. COWAN. I have simply a word to say in regard to this matter. I differ entirely with my honorable friend from Ohio [Mr. SHERMAN] as to whether this is a raw material or not. think there can be no question about that. might as well say that potatoes when dug out of the ground, corn when taken out of the husk, wheat when it was thrashed, was not a raw material as to say that cotton ginned is not so, and therefore to tax it as raw material is, I think, violative of one of the very first principles of taxation. No commodity should be caught at that