Note 27 — EIGHTH CONGRESS—SECOND SESSION. PROCEEDINGS AND DEBATES IN THE HOUSE OF REPRESENTATIVES. (continued 4)

With this session ended the first term of Mr. Jefferson’s administration, and the end of that term presents a natural occasion for reviewing the working of the Government in its point of chief contact with the people—receipts and expenditures. These were kept at the lowest point. The internal taxes had been repealed: the custom house duties had not been increased. For, though the change of many articles from the ad valorem to the specific list, had the effect of increasing the revenue, yet it did not increase the duty, the object being to prevent frauds and to simplify and cheapen the collection. The duties themselves, both the specific and the ad valorem, remained at the low and moderate rates which characterized the early periods of our Government. The average of the specifics, on the leading articles, were: on spirits, 29 cents per gallon; on wines, 32 cents per gallon; on teas, 16 cents per pound; on coffee, 5 cents per pound; on sugars, 2½ cents per pound; on molasses, 5 cents per gallon. The ad valorems were simplified to three rates, which in fact were but two, the third and highest rate only applying to luxuries, which were but little imported; and the lowest rate applying to the bulk of the importations. Thus the highest rate (20 per centum) in an importation of near forty million dollars worth of merchandise paying ad valorem duties, only fell upon $425,000 of that quantity, while the 15 per cent. fell upon $7,640,000 worth, and the 12½ per cent. rate fell upon 31 millions of dollars worth. The average of all the ad valorems was about 13 per centum; and such was the cheapness of this simplicity of impost, that the cost of collection was only about 4 per centum, and the revenue cutter service almost null. The net revenue yielded was twelve millions and a quarter, of which there went to the principal and interest of the public debt, about eight millions; to the army and navy, about two millions; miscellanies, about half a million; tribute to Algiers, near $200,000; diplomatic intercourse, $60,000; and about $600,000 to the civil list—comprehending the entire support of the Government in all its branches—executive, judicial, and legislative. And thus the moderate duties of that time, upon the moderate importation of that time, with the economy of that time, produced nearly twenty times the amount of revenue which the support of the Federal Government required.