Indiana Palladium, Volume 8, Number 7, Lawrenceburg, Dearborn County, 3 March 1832 — Page 1

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WoMaRTo aa'yaaaj) siaa 532.a23c33j aaauasa SK3&a2as0 aaaaaiaaj o sxaaaaaa VOI,. VIII. liAWHECEBUHGII, (IA.) SATUBBAY, MARCH 8, 3183 i WO. 7.

REDUCTION OF

THE TARIFF.

The following resolution, submitted by Mr. Clay, being the special order of the day, wrs taken up for consideration: Resolved, That the existing- duties upon articles imported from f rein countries, and not coming into competition with similar articles made or produced within the United States, ought lo be forthwith abolished, except the dunes upon wines and silks, and that those oug-ht to be reduced. And that the committee on Finance be instructed to report a bill accordingly. Tne resolution having been read, Mr. CLAY rose and addressed the Senate, in substance hs follows. I h ave a few observation?, Mr. President, and only a few to submit to the Satiate, on the measure now before you ;

in doin which, I have to ask ail your

itid'.il&uce. I feel but too se r,sibly and utiaflVctedly the eff. cts of approaching

age: and I have been, for some year?,

very little in the habit of addressing deliberate assemblies. 1 am told, that I have been the cause the most unwilling cause, if I have been, of exciting expectations the evidence of which is n round us. I regret it; for however the subj ect on which I am about to speak iti olhsr hands might be treated to gratify or to reward the presence and attention now given, in mine I have -nothing but a plain, unvarnished and unambitious exposition to make. It forms no part of my present purpose, said Mr. C- to enter into a consideration of the established policy of protection. Strong in the convictions, and deeply seated in the affections of a largs majority of the people of the United States, it stands self vindicated in the general prosperity, in the rich fruits which it has scattered over the land, in the experience of all prosperous and powerful nations present and past, and now, in that of our own. Nor do I think it necessary to discuss that policy on this resolution. Other gerjtlemen may think differently, and choose lo argue and acsail it. If they do, I have no

doubt that, in all parts of the Senate,

members more competent than I am

will be ready to defend and support it

My object now is to limit myself to cer

tain views and principles connected

with the present financial condition of

the country.

A consideration of the state of the

public revenue has becomenecessary,

in consequence of the near approach ol

the entire extinction of the public debt; nnd I concur with you, sir, in believing

that no season could be more appropri

ale than the present session of Congress

to endeavor to make a satisfactory ad

justment of the Tariff. The public debt chiefly rose out of the late war,

justly denominated the second contest

for National Independence. An act

commonly called the sinking fund act,

was passed by Congress near fifteen years ago, providing for its reimbursement. That act was-prepared and proposed by a friend of yours and mine, whose premature death was not a loss merely to his native State, of which he was one of its brightest ornaments, but to the whole nation. No man with whom I everhad the honor to be associated in the legislative councils, combined more extensive and useful information, with more firmness ofjudgment and blandness of manner, than did the lamented Mr. Lowndes. And when in the prime of lit?, by the dispensation ofnn all wise Providence, he was taken from us, his country had reason to anticipate the greatest benefits from his wisdom and discretion. By that act an annual appropriation of ten millions was m ide toward the payment of the principal and interest of the public debt; and also any excess which might yearly be in the Treasury beyond two millions of dollars, which it wa9 thought prudent to reserve for unforeseen exigencies. But this system of regular and periodical application of public revenue to the pavment of the public debt J

wou'd have been unavailing,il Congress had neglecled to provide the necessary

ways and means. Congress did not,

however, neglect the performance of

that duty. By various acts, and more especially by the tariff of 1824 the nbused tariff ofl824 The public coffera were amply replenished, and we have been enabled to reaeh our present proud eminence of financial prosperity. After Congress had thus abundantly provided funds and directed their systematical application, the duty remaining to be performed by the Executive was one simply ministerial. And no Executive and no Administration canjustley claim for itself any other

merit in the discharge of the public j distribution among the several States? debt, than that of a faithful execution 11 think not. If the collection, for the

of the laws. No other merit than that

similar one to which it is entitled for directing a regular payment of what is due from time to time to the army and navy, or to the officers of the Civil Government for their salaries. The operation of the sinking fund act commenced with the commencement of Mr. Monroe's Administration. During its continuance of 8 years, owing to the embarrasment3 of the Treasury, the ten millions were not regularly applied to the payment of the dtbt; and upon the termination of that administration, the Treasury stood largely in arrear to the sinking fund. Dur

ing the subsequent Administration of

four years, not only was the ten millions faithfully applied during each year, but those arrears were brought up and all - .. : J ?. i . rt

previous ueuciences maae eooa. do

that when the present Administration

began, a plain unincumbered and well

defined path lay before it. Under the measures whicn have been devised in

the short term of fifteen years, Ihe Gov

ernment has paid nearly one hundred

purpose ef such a surplus, is to be made from the pockets of one portion of the people, to be ultimately returned to the same pockets, the process would beattended with Ihe certain loss arising from the charges, collection, and with the loss, also, of interest whilst the money is performing the unnecessary circuit; and it would therefore ba unwise, li it i3 to be collected from one portion of the people and given to another it would be urj jst. If it is to be given to the States, in their corporate capacity, to be used by them in their public expenditure, I know of no principle in the Constitution which authorizes the Federal Government to become such a collector for the States, nor of any principle of safety or propriety which admits of the States becoming such recipients of gratuity from the General Government. The public revenue, then, should be regulated and adapted to the proper service of the General Government. It should be ample: for a defi

cit in the public income, always to be

millions of principal and about an equal deprecated, is sometimes attended, as sum of the interest, leaving the small we well know from his story, and from remnant of twenty-four millions. what has happened in our own time, Of that remnant, thirteen millions with fatal consequences. In a country consist of the 3 per cent, stock, created so rapidly growing as this is, with such by the act of 1790, which the Govern- diversified interests, new wants, and ment does not stand bound to redeem unexpected calls upon the public treasat any prescribed time but which it may ury, must frequently occur. Take discharge whenever it suits its own con- some examples irom this session, venience; and when it is discharged, il The State of Virgiuia has presentmust be done by the payment of dollar ed a claim for an amount but little for dollar. I cannot think and I should short of a million, which she presses suppose, Congress can hardly believe, with an earnestness demonstrating her -.1.1 "1 . . wrm . . O

wun me secretary or the Ireasury, conviction of itsjustice. 1 he State of that it would be wise to pay off a stock South Carolina has also a claim for no of thirteen millions, eutitling its holders inconsiderable sum, being upwards of to but three per cent, with a capital of 100,000, which she urges with equal thirteen millions, worth an interest of earnestness. The gentleman from six per cent. la other words, to take Pennsylvania (Mr. Wilkins) has brought from the pockels of the people two dol- forward a claim arising, cut of French

lars to pay one into the hands of the spoliations, previous to the Convention

Stockholder. of 1800. whirh ia nprhnna not short nf

The moral value of tho payment of lve millions, and to some extent, I have

a national debt, consists in the demon- no doubt it ha3 a just foundation. In stration which it affords of the ability any provision of a public revenue, Con

of a country to meet, and its integrity gress ought so to fix it as to admit of in fulfilling all its engagements. That the payment of honest and proper dethe resources of ihis counlry, increasing mands which itsjustice cannot reject as it constantly is in population and or evade. wealth, are abundantly sufficient to I hope too that either in the adjustmeet any debt which it may ever pru- ment of the public revenue, or, what dently contract, cannot be doubted, would be preferable, in the annronria.

And its punctuality and probity, from tion of the process of the public lands,

me punou oi uie assumption in l rju, of etiectual and permanent provision wil the debt of the revolution, down to the be made for such Internal Improve present time, rest upon a solid and in- ments as m3y be sanctioned by con

contestable foundation. 1 he danger, grcss. This is due the American Peo-

perhaps, is not that it will not fairly pie, and emphatically due to the West

meet its engagements, but that, from ern People. Sir, temporary cause may

an nioiuuidie aviuiry, arising irom tern- exact a reluctant acquiescence from

porary causes, it may bring discredit up- the People of the West, in thesuspen on itself by improvident arrangements, sion of appropriations to objects of in

which no prudent man, in the manage- ternal improvement, but as certain as

mentor nis pnvaie allairs, would ever you preside in that Chair, or as the Sun think of adopting. performs its diurnal revolution, they Of the residue of that twenty four will not be satisfied with an abandon-

millions of debt, after deducting the ment of the policy. Ihey will come thirteen millions of three per cent., here and tell you , not in a tone of menless than two millions are due, .and of ace or supplication, but in the language

right payable, within the present year, of conscious right, that they must share

li to mat sum De added tne moiety, wiin you in tne oeneins, as iney divide

which becomes due on the 31st of Dec. w'tn ?ou the burthens and the perils of

next, of 4,454,727, created by the act a common government. I hey will say

of 2Gih May, 1 824, we have but a sum that they have no direct interest in the

of about four millions, which the public expenditures for the Navy, the Fcrtifi-

creditor can lawfully demand, or which cation?, nor even tbe Army, those

the Government is bound to pay in the greatest absorbants of tbe public treasu-

course oi mis year, it more is paid.it ry- mat tney are not muuierenf, in

tbe public lands, or a considerable portion of them, to that object, would be a most natural and suitable disposition. And 1 dohope,sir,that thatgreatresoice will be cherished and dedicated to some national purpose worthy of the Repub lie. Utterly opposed as I trust, Congress will shew itself to be, to all the mad aud wild schemes and to that latest, maddest and wildest of all , recommended by the Secretary cf the Treasury for squandering the public domain, I hope it will be preserved for the present generation and for posterity, as it has been received from our ancestors, a rich and bountiful inheiitance. Ia these halcyon day? of peace and plenty, and an overflowing treasury, we appear to embarrass ourselves in devising visionary schemes for casting away the bounty with which the goodness of Providence has blessed us. But, sir, the storm of war will come, when we know not; the day of trial and difficulty will assuredly ceme, and now is the time, by a prudent forecast, to husband our resources, and this, the greatest of them all. Lst them not be horded and hugged with a misei's embrace, but liberally used. Lc?t the public lands be administered in a generous spirit and especially towards the States within which they are situated. Let the proceeds of the sales of the public lands be applied in seasons of peace, to some great objects; and when war does come, by suspending that application of them, during its continuance, you will be at once put in possession of

means lor its vigorous prosecution.

once what ought not to be disputed, and leaves to be settled hereafter, if necessary, what may be controvertedA certain part of the South has hitherto complained that it pays a dispropoitionafe amount of the imposts. If the complaint be well founded, by the adoption of il is measure it will be relieved at once, as will be hereafter shown, from at least a fourth of its burdens. The measure is in conformity with the uniform practice of the Goveri.m?nt, from its commencement, and with the profession of all the eminent politicians of the S".Hh, until of lite. It assumes the right of the Government, in the assessment ef duties, to discriminate be! ween those articles which sound policy requires it to foster, and those which it Leed not encourage. This has been the invariable principle, on which the Government has proceeded, from the net of Congress of the 4tU of July, 1 7S0, down to the present time. And has it not been admitted by almost every prominent Southern politician? His it not been even acknwleded by the fathers of the Free trade Chuich, in their late address, promulgated, from Philadelphia, to the people of the United States? If we never had a system of foreign imposts, and were now called upon, for the fi'St time, to oiiginate one, should we not discriminate between the objects of our own industry, and those produced by foreigners-? And is there any difference in its application, between the modification of an existing system aad the origination of a new one? If tbe gentleman cf the

can only be done by anticipating the

periods oi its payment, and going into the public market to purchase the

stock. Can it be doubted that if you

do so, the vigilant holder of the stock,

taking advantags ot your anxiety, will

demand a greater price than its value?

Already we perceive that three per cents, have risea to tbe extraordinary height of2G percent. The difference between a payment of the inconsidera

ble portion remaining of the public

debt in one, two, or three years, is certainly not so important a to justify a

resort to highly disadvantageous terms. Whoever may be entitled to the credit of the payment of the public debt, I congratulate you, sir, and the country, most cordially that, it is so near at hand. It is so near being totally extinguished.

that we may now safely inquire whether, without prejudice to any established policy,' wo may not relieve the consumption of the country by the repeal or reduction of duties, and curtail considerably the public revenue. In making this inquiry, the first question which presents itself, is whether it is expedient to preserve the existing duties in order to accumulate a surplus in tbe Treasury for the purpose of subsequent

deed, to the safety and prosperity of any part of our common country. Oa the contrary, that every portion of the Republic is indirectly, at least, interested in the welfare of the whole, and that they sympathize in the distress, and

rejoice in the happiness of the most distant quarter of the Union. And to demonstrate that they are not careless or indifferent to interests not directly their

own, they may triumphantly and proud

lv appeal to the gallant part which they

bore in the late war, and point to the bloody fields on which some of their most patriotic sons nobly fell fighting in the common cause But they will also say that these fraternal and just senti

ments ought to be reciprocated by their Atlantic brethren. That these ought

not to be indifferent to the welfare and of the West, and that they have the

same collateral or indirect interest in its success and advancement that the West has in theirs. That it does not ask internal improvements to be exclusively confined to itself, but that it may receive, in common with the rest of the Union, a practical benefit in the only

form compatible with its interior condition. Tho appropriation of the proceeds oi

More than twenty-five year3 ago, when South, opposed to the Taiiff were to first I took a seat in this body, I was obtain complete possession of the powtold, by the fathers of the Government, ers of Government, would they hazard

that, if we had any thing perfect in our their exercise upon i.ny other principle? institutions, it was the system for dispo- If it be said that s)?ie of the articles sing of the public lands, and I was cau- which would, by this measure, be tioned against rash innovations in it. liberated from duties, are luxuries, the Subsequent experience fully satisfied remark is equally true of some of the mo of the wisdom of their counsels, and articles remaining subject to duties, that all vital changes in it ought to be la the present advanced stage cf cornresisted, fort and civiiizaiion, it is not easy to Although it may be impracticnble to dr3w the line between luxuries and nesay what the exact amount of the public cessaries. It will be difficult to conrevenue should be in future, and vince the people that bchea tea is a what would be the precise produce of luxury, and the article of fine broad any given system cf imposts,. we may cloths is a necessary cf life, safely assume, that the revenue may In stating that the duties on the pronow he reduced, and considerably re- tected ought to be retained, it has been duced. This reduction may be effect- far from my wish to preclude inquiry ed in various ways, and on different into their adequacy or propriety. If it principles. Only three modes shall can ba shown that, in any instance, now be noticed. they are excessive or disproportionately

lat. J o reduce duties on all articles, burthensome on any section of the in the same ratio, without regard to the Union, for one I am ready to vole for principle of protection. their reduction. The system contem2d. To retain them on unprotected pLtesan adequate protection; beyond articles, and augment them on the pro- that it is not necessary to go. Short of tected articles. that, its operation will be iijurious to And, 3d. Abolish and reduce the du- all parties, lies on unprotected articles, retaining The people of this country, or a and enforcing the faithful collection of large trnjority of them, expect that the those on the protected articles. system will be preserved. And ils To the first mode there are insupera- abandonment would produce general ble objections. It would lead inevita- surprise, spread desolation over tho bly to the destruction of our home man- Hnd, occasion as great a shock as a ufactures. It would establish a sort of declaration of war forthwith against the bed Procrustes, by which the duties on most powerful nation of Europe.

But if the system bs preserved, it ought lo be hones'ly, fairly, aud faithfully enforced. That there do exist the most scandalous violations of it, and the grossest frauds upon the revenue , in regird to seme of the most impoituct article?, cannot be doubted. As to iron, objects really belonging to one denomination, lo which a higher duty is attached, are imported under another nam", to which a lower duty is assigned, and the law thus evaded. False invoices are made as to woe liens, and the classification into rainimums h constantly evaded. The success cf the American manufacture of cotton bagging ha3 been such as that, by fumishii g a better and cheaper article, tho bagging of Inverness and Dundee has been almost excluded from the consumpticn of the States bordering on the Mississippi ami its tributaries. There has not et been sufficient time to fabricate and transport tho article in necessary quantities from the Western States to the Southern Atlantic States, which therefore have been almost exclusively supplied from the Scottish manufactures. The

payment of the duty is caded by the

introduction oi tne ioreign rabuc, under the nane of burlaps, or feme othc r mercantile phrase, and instead of pa) irg five cents the Equare yard, it is entered with a duty of only fifteen per cent, ad valorem. That this practice prevail?, is demonstrated by the Treasury report of the duties accruing on cotton bagging for the years 1828, 1829, and 1830. DuriDg the first year Ihe amount was 127,505, the second Continued on last page.

all articles should be blindly measured,

wimout respect to their nature or the

extent of their consumntion. Am? it

j . - . would be derogatory from every princi

ple of theory or practice on which the

Government has hitherto proceeded.

The second rrould be still more ob

jectionable to the foes of the Tariff than

either of the others. But it cannot be controverted that, by augmenting con

siderably the duties on the protected'

class, so as to carry them to the point'

or near to the confines of absolute prohibition, the subject in view, of effecting the necessary reduction cf the pub litrevenue,may be accomlished without

touching the duties on the unprotected class. The consequence of such an augmentation would be a great diminution in the importation of the foreign article, and of course in the duties upon it. But against entire prohibition, ex

cept perhaps in a few instances, I have been always, and still am opposed. By leaving the door open to the foreign rival article, the benefit is secured of a salutary competition. If it be hermeti

cally closed, the danger is incurred of

monopoly. The third mode is the most equitable and reasonable, and it presents an undebateable ground, on which 1 had hoped we could all safely tread, without difficulty. It exacts no sacrifice of principle from the opponents of the American System; it comprehends more on the part of ils friends. The measure before you embraces this mode. It is

simple, and free from all complexity. It divides the whole subject of imposts

according to its nature. It settles at