Mr. HARTLEY moved thirty cents, in order (as he observed) to make it
correspond with the rate per cent. on the value; as the principle of
proportion seemed to be admitted by the committee.
Mr. SHERMAN said, it appeared to him to be pretty well proportioned;
because those who accustomed themselves to drink wine, consumed two or
three times as much as those who used spirits, and consequently paid a
due proportion.
Mr. FITZSIMONS.--I shall move you, sir, that the blank be filled with
fifty cents. I observed some gentlemen, in their arguments on the last
article, laid great stress upon the impropriety of taxing the
necessaries of life that were principally consumed by the poorer class
of citizens. I do not think any of the members of this committee
consider the article of Madeira wine a necessary of life, at least to
those whose incomes are only sufficient for a temperate subsistence;
therefore no objection of this kind can be made on the present occasion.
The propriety of a high tax on wines, I apprehend, is self-evident,
whether we consider the price of the article, or the ability of the
people to pay who consume it. The value of a pipe of Madeira wine, I
believe, is about two hundred dollars, a hogshead of rum is worth about
forty dollars. The ability of those who consume the one and the other
are, I suppose, in nearly the same ratio. I do not pretend to know what
are the intentions of gentlemen on this subject, but my wish is, to
raise so considerable a revenue from imposts as to render it unnecessary
to apply to any other mode. If this be the wish of the committee also,
they will be inclined to raise a great part of it from the consumption
of those people who are best able to pay, among whom we may, with great
propriety, reckon the consumers of Madeira wine.
Mr. P. MUHLENBERG thought his colleague's observations were very
judicious, and said they met exactly his ideas; he therefore seconded
the motion for fifty cents.
Mr. BLAND.--I am not against laying any sum on this article which there
is a probability of collecting; but I am afraid we are running wild in
the business, and although we appear to be in search of revenue, we are
pursuing a track that will lead us wide of our mark. I am really
suspicious, if we lay a duty of fifty cents upon Madeira wine, we shall
not have a single gallon entered in any port of the United States, and
we shall fully verify to the world the truth of an old maxim, that two
and two, in finance, do not make four. I would therefore suggest to the
committee, the propriety of considering well, whether they can, or
cannot, collect the high duty proposed. If they are well convinced that
it can be done, and will satisfy me only that there is a probability of
its being the case, I shall cheerfully concur in the motion; but at
present, I am of opinion we shall not be able to obtain any revenue
whatsoever if the tax is laid so high.
Mr. BOUDINOT.--I agree entirely with the principle of laying duties
according to their relative value, and hope the committee will keep up
the line of proportion as near as possible. It is only in the
application of this principle on the present occasion, that I differ
with the honorable gentleman from Pennsylvania, for whose opinions I
have the highest respect. I confess, too, that he is much better able to
ascertain the price of foreign articles than I am; but I believe, with
regard to this one of Madeira wine, I have it in my power to ascertain
it pretty well. I take it, that a pipe of wine usually costs at Madeira
from twenty-five to thirty pounds sterling; but then I would wish the
committee to take into consideration that this wine is paid for there in
our own produce at a very advantageous rate, which reduces the nominal
sterling sum down in value to a like sum of our currency. I therefore
look upon it, that we may calculate the cost of a gallon of Madeira wine
at one dollar; for I cannot conceive that any gentleman entertains an
idea of taxing the risk the merchant runs in importing the wine, or the
increased value it obtains during the time it takes to ripen for sale.
In laying our duties we ought to apportion it to the value of the
article at the time and place of importation, without taking advantage
of such adventitious circumstances. Beside, there is a considerable loss
attends keeping Madeira. The storage is no inconsiderable expense, and
the evaporation is an actual loss in quantity, which the merchant is
obliged to replace by filling up the cask. Under these considerations, I
think it may be admitted, that twenty or twenty-five cents per gallon is
a sufficient tax. Moreover, it may be easily demonstrated, that such a
duty would be more productive than fifty cents; because it would be with
greater certainty collected. There is another reason that induces me to
think twenty cents more proper; fifty cents for a gallon of wine is a
large sum for a merchant to lay down in duties; it must abridge his
mercantile operations, and consequently tend to discourage the Madeira
trade, which, in my humble opinion, is one of the most advantageous
America has left to her, from the selfish policy that actuates some
foreign Powers; therefore we ought not to burthen it to so great a
degree as the proposed duty seems to have in contemplation.
Mr. FITZSIMONS withdrew his motion for fifty cents, and moved
thirty-three and one-third cents.
The question was put upon thirty-three and one-third cents as the
highest sum, and agreed to, being twenty-one votes for it, and nineteen
against it.
The next article "on all other wines," presented itself in order for the
consideration of the committee.
Mr. HEISTER observed, there were a great variety of wines included in
that general expression, the prices of which were very different; some
worth even more than Madeira, and others less; he submitted, therefore,
to the committee the propriety of discriminating and taxing them
according to their value.
Mr. BOUDINOT acquiesced in the remark.
Mr. FITZSIMONS did not think it worth while, at this time, to engage the
committee in making such a discrimination. The rich wines were imported
in no very considerable quantities, and if the duty was laid pretty
high, it would tend to exclude the most inferior and low wines from
being introduced.
It was thereupon agreed to lay twenty cents on all other wines.