Hon. ALBERT GALLATIN, &c.
_Answer of the Secretary._
TREASURY DEPARTMENT, Feb. 9, 1813.
SIR: I have the honor to submit the following answer to the questions
proposed in your letter of the 3d instant:
1. It is believed from the reasons stated in my letter of the 10th June
last to the Committee of Ways and Means, that the amount of revenue
applicable to the service of the year 1814, which would result from a
modification of the non-importation acts suggested in the said letter,
may be estimated at about five million of dollars, provided that
modification takes place during the present session of Congress.
2. No better modification, for the purposes therein intended, has
suggested itself than that proposed in the letter aforesaid. But it
would seem requisite, for the same object, that no drawback should be
allowed on the re-exportation of the merchandise which may be thus
imported.
3. The most important legal provision which appears necessary to
enforce the non-importation acts, is a positive prohibition of a
restoration by order of court of merchandise, the importation of which
is prohibited by law. It is also believed that it will be necessary
to order all the cargoes of salt, particularly from Lisbon, to be
discharged under the inspection of proper officers; and it appears
reasonable that the expense should be defrayed by the importers.
4. It appears, in every point of view, highly desirable, that the duty
on foreign tonnage should be increased. A duty of ten dollars per
ton does not seem greater than what is required for the protection
of American vessels. But I cannot form any correct estimate of the
probable addition resulting to the revenue from such increase. Much
would depend on the suppression of the trade carried on by American
vessels with enemies' licenses.
With respect to the necessity of providing an additional revenue
for the year 1814, I beg leave to refer to the statements made and
opinions expressed, when I had the honor several weeks ago to wait
on the Committee of Ways and Means. And I beg leave to add that
this necessity has been considerably increased by the subsequent
expenditures authorized by law; amongst which must be particularly
mentioned the act for the increase of the navy, and that for raising
twenty thousand men for one year. Indeed, considering the general rate
of expenditure resulting from the war measures which have been adopted,
I am of opinion it will be necessary to recur both to a modification
or repeal of the non-importation acts and to the proposed internal
taxes, in order to provide a revenue commensurate with those expenses.
When an additional revenue of five millions was believed sufficient,
that opinion was predicated on the supposition made by the committee,
that annual loans of only ten or twelve millions of dollars would be
wanted. With a revenue of twelve millions of dollars for this year, it
is ascertained that a loan of at least sixteen millions is necessary.