Volume II Part 28 (2/2)

M^r Langdon was not here when N. H. was allowed three members. If it was more than her share; he did not wish for them.

M^r Butler contended warmly for M^r Gerry's motion as founded in reason and equity.

M^r Elseworth's proviso to M^r Gerry's motion was agreed to nem. con.

M^r King thought the power of taxation given to the Legislature rendered the motion of M^r Gerry altogether unnecessary.

On M^r Gerry's motion as amended

N. H. no. Ma.s.s. ay. C^t no. N. J. no. P^a no. Del. no. M^d no.

V^a no. N. C. div^d. S. C. ay. Geo. no.

On a question, Shall Art: VI Sect. 12. with the amendment to it proposed & entered on the 15 instant, as called for by Col. Mason be now taken up? It pa.s.sed in the negative.

N. H. ay. Ma.s.s. no. C^t ay. N. J. no. P^a no. Del. no. M^d ay.

V^a ay. N. C. ay. S. C. no. Geo. no.

M^r L. Martin. The power of taxation is most likely to be criticised by the public. Direct taxation should not be used but in cases of absolute necessity; and then the States will be the best Judges of the mode. He therefore moved the following addition to Sect: 3: Art VII ”And whenever the Legislature of the U. S. shall find it necessary that revenue should be raised by direct taxation, having apportioned the same, according to the above rule on the several States, requisitions shall be made of the respective States to pay into the Continental Treasury their respective quotas within a time in the said requisitions specified; and in case of any of the States failing to comply with such requisitions, then and then only to devise and pa.s.s acts directing the mode, and authorizing the collection of the same.”

M^r M^cHenry 2^{ded} the motion--there was no debate, and on the question

N. H. no. C^t no. N. J. ay. Pen^a no. Del. no. M^d div^d.

(Jenifer & Carol no) V^a no. N. C. no. S. C. no. Geo. no.

Art. VII. Sect. 4.--M^r Langdon, by this section the States are left at liberty to tax exports. N. H. therefore with other non-exporting States, will be subject to be taxed by the States exporting its produce. This could not be admitted. It seems to be feared that the Northern States will oppress the trade of the South^n. This may be guarded ag^{st} by requiring the concurrence of 2/3 or 3/4 of the legislature in such cases.

M^r Elseworth. It is best as it stands. The power of regulating trade between the States will protect them ag^{st} each other. Should this not be the case, the attempts of one to tax the produce of another pa.s.sing through its hands, will force a direct exportation and defeat themselves. There are solid reasons ag^{st} Cong^s taxing exports. 1. it will discourage industry, as taxes on imports discourage luxury. 2. The produce of different States is such as to prevent uniformity in such taxes. There are indeed but a few articles that could be taxed at all; as Tob^o rice & indigo, and a tax on these alone would be partial & unjust. 3. The taxing of exports would engender incurable jealousies.

M^r Williamson. Tho' N. C. has been taxed by Virg^a by a duty on 12000 Hhs of her Tob^o exported thro' Virg^a yet he would never agree to this power. Should it take place, it would destroy the last hope of an adoption of the plan.

M^r Gov^r Morris. These local considerations ought not to impede the general interest. There is great weight in the argument, that the exporting States will tax the produce of their uncommercial neighbours.

The power of regulating the trade between P^a & N. Jersey will never prevent the former from taxing the latter. Nor will such a tax force a direct exportation from N. Jersey. The advantages possessed by a large trading City, outweigh the disadvantage of a moderate duty; and will retain the trade in that channel. If no tax can be laid on exports, an embargo cannot be laid though in time of war such a measure may be of critical importance. Tobacco, lumber and live-stock are three objects belonging to different States, of which great advantage might be made by a power to tax exports. To these may be added Genseng and Masts for s.h.i.+ps by which a tax might be thrown on other nations. The idea of supplying the West Indies with lumber from Nova Scotia is one of the many follies of lord Sheffield's pamphlets. The State of the Country also will change, and render duties on exports, as skins, beaver & other peculiar raw materials, politic in the view of encouraging American manufactures.

M^r Butler was strenuously opposed to a power over exports, as unjust and alarming to the staple States.

M^r Langdon suggested a prohibition on the States from taxing the produce of other States exported from their harbours.

M^r d.i.c.kenson. The power of taxing exports may be inconvenient at present; but it must be of dangerous consequence to prohibit it with respect to all articles and for ever. He thought it would be better to except particular articles from the power.

M^r Sherman. It is best to prohibit the National legislature in all cases. The States will never give up all power over trade. An enumeration of particular articles would be difficult invidious and improper.

M^r Madison. As we ought to be governed by national and permanent views, it is a sufficient argument for giving y^e power over exports that a tax, tho' it may not be expedient at present, may be so hereafter. A proper regulation of exports may & probably will be necessary hereafter, and for the same purposes as the regulation of imports; viz, for revenue--domestic manufactures--and procuring equitable regulations from other nations. An Embargo may be of absolute necessity, and can alone be effectuated by the Gen^l authority. The regulation of trade between State and State cannot effect more than indirectly to hinder a State from taxing its own exports; by authorizing its Citizens to carry their commodities freely into a neighbouring State which might decline taxing exports in order to draw into its channel the trade of its neighbours. As to the fear of disproportionate burthens on the more exporting States, it might be remarked that it was agreed on all hands that the revenue w^d princ.i.p.ally be drawn from trade, and as only a given revenue would be needed, it was not material whether all should be drawn wholly from imports--or half from those, and half from exports. The imports and exports must be pretty nearly equal in every State--and relatively the same among the different States.

M^r Elseworth did not conceive an embargo by the Congress interdicted by this section.

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