Thirty Years' View (Vol. I of 2)

"Here, then, is the peculiar recommendation to my plan, that, while it secures a chance, little short of absolute certainty, of procuring an abolition of twelve millions of duties upon our exports in foreign countries, in return for an abolition of twelve millions of duties upon imports from them, it exposes nothing to risk, the abolition of duty upon the foreign article here being contingent upon the acquisition of the equivalent advantage abroad.

"I close this exposition of the principles of my bill with the single remark, that these treaties for the mutual abolition of duties should be for limited terms, say for seven or ten years, to give room for the modifications which time, and the varying pursuits of industry, may show to be necessary. Upon this idea, the bill is framed, and the period of ten years inserted by way of suggestion and exemplification of the plan. Another feature is too obvious to need a remark, that the time for the commencement of the abolition of duties is left to the Executive, who can accommodate it to the state of the revenue and the extinction of the public debt."

The plan which I proposed in this speech adopted the principle of Mr. Madison's resolutions but reversed their action. The discrimination which he proposed was a levy of five or ten per cent. more on the imports from countries which did not enter into our propositions for reciprocity: my plan, as being the same thing in substance, and less invidious in form, was a levy of five or ten per cent. less on the commerce of the reciprocating nations – thereby holding out an inducement and a benefit, instead of a threat and a penalty.

CHAPTER XLVIII.

ALUM SALT. THE ABOLITION OF THE DUTY UPON IT, AND REPEAL OF THE FISHING BOUNTY AND ALLOWANCES FOUNDED ON IT

I look upon a salt tax as a curse – as something worse than a political blunder, great as that is – as an impiety, in stinting the use, and enhancing the cost by taxation, of an article which God has made necessary to the health and comfort, and almost to the life, of every animated being – the poor dumb animal which can only manifest its wants in mute signs and frantic actions, as well as the rational and speaking man who can thank the Creator for his goodness, and curse the legislator that mars its enjoyment. There is a mystery in salt. It was used in holy sacrifice from the earliest day; and to this time, in the Oriental countries, the stranger lodging in the house, cannot kill or rob while in it, after he has tasted the master's salt. The disciples of Christ were called by their master the salt of the earth. Sacred and profane history abound in instances of people refusing to fight against the kings who had given them salt: and this mysterious deference for an article so essential to man and beast takes it out of the class of ordinary productions, and carries it up close to those vital elements – bread, water, fire, air – which Providence has made essential to life, and spread every where, that craving nature may find its supply without stint, and without tax. The venerable Mr. Macon considered a salt tax in a sacrilegious point of view – as breaking a sacred law – and fought against ours as long as his public life lasted; and I, his disciple, not disesteemed by him, commenced fighting by his side against the odious imposition; and have continued it since his death, and shall continue it until the tax ceases, or my political life terminates. Many are my speeches, and reports, against it in my senatorial life of thirty years; and among other speeches, one limited to a particular kind of salt not made in the United States, and indispensable to dried or pickled provisions. This is the alum salt, made by solar evaporation out of sea water; and being a kind not produced at home, indispensable and incapable of substitute, it had a legitimate claim to exemption from the canons of the American system. That system protected homemade fire-boiled common salt, because it had a foreign rival: we had no sun-made crystallized salt at home; and therefore had nothing to protect in taxing the foreign article. I had failed – we had all failed – in our attempts to abolish the salt tax generally: I determined to attempt the abolition of the alum salt duty separately; and with it, the fishing bounties and allowances founded upon it: and brought a bill into the Senate to accomplish that object. The fishing bounties and allowances being claimed by some, as a bounty to navigation (in which point of view they would be as unconstitutional as unjust), I was under the necessity of tracing their origin, as being founded on the idea of a drawback of the duty paid on the salt put upon the exported dried or pickled fish – commencing with the salt tax, and adjusted to the amount of the tax – rising with its increase and falling with its fall – and that, in the beginning allowed to the exportation of pickled beef and pork, to the same degree, and upon the same principle that the bounties and allowances were extended to the fisheries. In the bill introduced for this purpose, I spoke as follows:

"To spare any senator the supposed necessity of rehearsing me a lecture upon the importance of the fisheries, I will premise that I have some acquaintance with the subject – that I know the fisheries to be valuable, for the food they produce, the commerce they create, the mariners they perfect, the employment they give to artisans in the building of vessels; and the consumption they make of wood, hemp and iron. I also know that the fishermen applied for the bounties, at the commencement of our present form of government, which the British give to their fisheries, for the encouragement of navigation; and that they were denied them upon the report of the then Secretary of State (Mr. Jefferson). I also know that our fishing bounties and allowances go, in no part, to that branch of fishing to which the British give most bounty – whaling – because it is the best school for mariners; and the interests of navigation are their principal object in promoting fishing. No part of our bounties and allowances go to our whale ships, because they do not consume foreign salt on which they have paid duty, and reclaim it as drawback. I have also read the six dozen acts of Congress, general and particular, passed in the last forty years – from 1789 to 1829 inclusively – giving the bounties and allowances which it is my present purpose to abolish, with the alum salt duty on which all this superstructure of legislative enactment is built up. I say the salt tax, and especially the tax on alum salt (which is the kind required for the fisheries), is the foundation of all these bounties and allowances; and that, as they grew up together, it is fair and regular that they should sink and fall together. I recite a dozen of the acts: thus:

"1. Act of Congress, 1789, grants five cents a barrel on pickled fish and salted provisions, and five cents a quintal on dried fish, exported from the United States, in lieu of a drawback of the duties imposed on the importation of the salt used in curing such fish and provisions.

"N.B. Duty on salt, at that time, six cents a bushel.

"2. Act of 1790 increases the bounty in lieu of drawback to ten cents a barrel on pickled fish and salted provisions, and ten cents a quintal on dried fish. The duty on salt being then raised to twelve cents a bushel.

"3. Act of 1792 repeals the bounty in lieu of drawback on dried fish, and in lieu of that, and as a commutation and equivalent therefor, authorizes an allowance to be paid to vessels in the cod fishery (dried fish) at the rate of one dollar and fifty cents a ton on vessels of twenty to thirty tons; with a limitation of one hundred and seventy dollars for the highest allowance to any vessel.

"4. A supplementary act, of the same year, adds twenty per cent. to each head of these allowances.

"5. Act of 1797 increases the bounty on salted provisions to eighteen cents a barrel; on pickled fish to twenty-two cents a barrel; and adds thirty-three and a third per cent. to the allowance in favor of the cod-fishing vessels. Duty on salt, at the same time, being raised to twenty cents a bushel.

"6. Act of 1799 increases the bounty on pickled fish to thirty cents a barrel, on salted provisions to twenty-five.

"7. Act of 1800 continues all previous acts (for bounties and allowances) for ten years, and makes this proviso: That these allowances shall not be understood to be continued for a longer time than the correspondent duties on salt, respectively, for which the said additional allowances were granted, shall be payable.

"8. Act of 1807 repeals all laws laying a duty on imported salt, and for paying bounties on the exportation of pickled fish and salted provisions, and making allowances to fishing vessels – Mr. Jefferson being then President.

"9. Act of 1813 gives a bounty of twenty cents a barrel on pickled fish exported, and allows to the cod-fishing vessels at the rate of two dollars and forty cents the ton for vessels between twenty and thirty tons, four dollars a ton for vessels above thirty, with a limitation of two hundred and seventy-two dollars for the highest allowance; and a proviso, that no bounty or allowance should be paid unless it was proved to the satisfaction of the collector that the fish was wholly cured with foreign salt, and the duty on it secured or paid. The salt duty, at the rate of twenty cents a bushel, was revived as a war tax at the same time. Bounties on salted provisions were omitted.

"10. Act of 1816 continued the act of 1813 in force, which, being for the war only, would otherwise have expired.

"11. Act of 1819 increases the allowance to vessels in the cod fishery to three dollars and fifty cents a ton on vessels from five to thirty; to four dollars a ton on vessels above thirty tons; with a limitation of three hundred and sixty dollars for the maximum allowance.

"12. Act of 1828 authorizes the mackerel fishing vessels to take out licenses like the cod-fishing vessels, under which it is reported by the vigilant Secretary of the Treasury that money is illegally drawn by the mackerel vessels – the newspapers say to the amount of thirty to fifty thousand dollars per annum.

"These recitals of legislative enactments are sufficient to prove that the fishing bounties and allowances are bottomed upon the salt duty, and must stand or fall with that duty. I will now give my reasons for proposing to abolish the duty on alum salt, and will do it in the simplest form of narrative statement; the reasons themselves being of a nature too weighty and obvious to need, or even to admit, of coloring or exaggeration from arts of speech.

"1. Because it is an article of indispensable necessity in the provision trade of the United States. No beef or pork for the army or navy, or for consumption in the South, or for exportation abroad, can be put up except in this kind of salt. If put up in common salt it is rejected absolutely by the commissaries of the army and navy, and if taken to the South must be repacked in alum salt, at an expense of one dollar and twelve and a half cents a barrel, before it is exported, or sold for domestic consumption. The quantity of provisions which require this salt, and must have it, is prodigious, and annually increasing. The exports of 1828 were, of beef sixty-six thousand barrels, of pork fifty-four thousand barrels, of bacon one million nine hundred thousand pounds weight, butter and cheese two million pounds weight. The value of these articles was two millions and a quarter of dollars. To this amount must be added the supply for the army and navy, and all that was sent to the South for home consumption, every pound of which had to be cured in this kind of salt, for common salt will not cure it. The Western country is the great producer of provisions; and there is scarcely a farmer in the whole extent of that vast region whose interest does not require a prompt repeal of the duty on this description of salt.

"2. Because no salt of this kind is made in the United States, nor any rival to it, or substitute for it. It is a foreign importation, brought from various islands in the West Indies, belonging to England, France, Spain, and Denmark; and from Lisbon, St. Ubes, Gibraltar, the Bay of Biscay, and Liverpool. The principles of the protecting system do not extend to it: for no quantity of protection can produce a home supply. The present duty, which is far beyond the rational limit of protection, has been in force near thirty years, and has not produced a pound. We are still thrown exclusively upon the foreign supply. The principles of the protecting system can only apply to common salt, the product of which is considerable in the United States; and upon that kind, the present duty is proposed to be left in full force.

"3. Because the duty is enormous, and quadruples the price of the salt to the farmer. The original value of salt is about fifteen cents the measured bushel of eighty-four pounds. But the tariff substitutes weight for measure, and fixes that weight at fifty-six pounds, instead of eighty-four. Upon that fifty-six pounds, a duty of twenty cents is laid. Upon this duty, the retail merchant has his profit of eight or ten cents, and then reduces his bushel from fifty-six to fifty pounds. The consequence of all these operations is, that the farmer pays about three times as much for a weighed bushel of fifty pounds, as he would have paid for a measured bushel of eighty-four pounds, if this duty had never been imposed.

"4. Because the duty is unequal in its operation, and falls heavily on some parts of the community, and produces profit to others. It is a heavy tax on the farmers of the West, who export provisions; and no tax at all, but rather a source of profit, to that branch of the fisheries to which the allowances of the vessels apply. Exporters of provisions have the same claim to these allowances that exporters of fish have. Both claims rest upon the same principle, and upon the principle of all drawbacks, that of refunding the duty paid on the imported salt, which is re-exported on salted fish and provisions. The same principle covers the beef and pork of the farmer which covers the fish of the fisherman; and such was the law, as I have shown, for the first eighteen years that these bounties and allowances were authorized. Fish and provisions fared alike from 1789 to 1807. Bounties and allowances began upon them together, and fell together, on the repeal of the salt tax, in the second term of Mr. Jefferson's administration. At the renewal of the salt tax, in 1813, at the commencement of the late war, they parted company, and the law, to the exact sense of the proverb, has made fish of one and flesh of the other ever since. The fishing interest is now drawing about two hundred and fifty thousand dollars annually from the treasury; the provision raisers draw not a cent, while they export more than double as much, and ought, upon the same principle, to draw more than double as much money from the treasury.

"5. Because it is the means of drawing an undue amount of money from the public treasury, under the idea of an equivalent for the drawback of duty on the salt used in the curing of fish. The amount of money actually drawn in that way is about four millions seven hundred and fifty thousand dollars, and is now going on at the rate of two hundred and fifty thousand dollars per annum, and constantly augmenting. That this amount is more than the legal idea recognizes, or contemplates, is proved in various ways. 1. By comparing the quantity of salt supposed to have been used, with the quantity of fish known to have been exported, within a given year. This test, for the year 1828, would exhibit about seventy millions of pounds weight of salt on about forty millions of pounds weight of fish. This would suppose about a pound and three quarters of salt upon each pound of fish. 2. By comparing the value of the salt supposed to have been used, with the value of the fish known to have been exported. This test would give two hundred and forty-eight thousand dollars for the salt duty on about one million of dollars' worth of fish; making the duty one fourth of its value. On this basis, the amount of the duty on the salt used on exported provisions would be near six hundred thousand dollars. 3. By comparing the increasing allowances for salt with the decreasing exportation of fish. This test, for two given periods, the rate of allowance being the same, would produce this result: In the year 1820, three hundred and twenty-one thousand four hundred and nineteen quintals of dried fish exported, and one hundred and ninety-eight thousand seven hundred and twenty-four dollars paid for the commutation of the salt drawback: in 1828, two hundred and sixty-five thousand two hundred and seventeen quintals of dried fish exported, and two hundred and thirty-nine thousand one hundred and forty-five dollars paid for the commutation. These comparisons establish the fact that money is unlawfully drawn from the treasury by means of these fishing allowances, bottomed on the salt duty, and that fact is expressly stated by the Secretary of the Treasury (Mr. Ingham), in his report upon the finances, at the commencement of the present session of Congress. [See page eight of the report.]

"6. Because it has become a practical violation of one of the most equitable clauses in the constitution of the United States – the clause which declares that duties, taxes, and excises, shall be uniform throughout the Union. There is no uniformity in the operation of this tax. Far from it. It empties the pockets of some, and fills the pockets of others. It returns to some five times as much as they pay, and to others it returns not a cent. It gives to the fishing interest two hundred and fifty thousand dollars per annum, and not a cent to the farming interest, which, upon the same principle, would be entitled to six hundred thousand dollars per annum.

"7. Because this duty now rests upon a false basis – a basis which makes it the interest of one part of the Union to keep it up, while it is the interest of other parts to get rid of it. It is the interest of the West to abolish this duty: it is the interest of the Northeast to perpetuate it. The former loses money by it; the latter makes money by it; and a tax that becomes a money-making business is a solecism of the highest order of absurdity. Yet such is the fact. The treasury records prove it, and it will afford the Northeast a brilliant opportunity to manifest their disinterested affection to the West, by giving up their own profit in this tax, to relieve the West from the burthen it imposes upon her.

"8. Because the repeal of the duty will not materially diminish the revenue, nor delay the extinguishment of the public debt. It is a tax carrying money out of the treasury, as well as bringing it in. The issue is two hundred and fifty thousand dollars, perhaps the full amount which accrues on the kind of salt to which the abolition extends. The duty, and the fishing allowances bottomed upon it, falling together as they did when Mr. Jefferson was President, would probably leave the amount of revenue unaffected.

"9. Because it belongs to an unhappy period in the history of our government, and came to us, in its present magnitude, in company with an odious and repudiated set of measures. The maximum of twenty cents a bushel on salt was fixed in the year '98, and was the fruit of the same system which produced the alien and sedition laws, the eight per cent. loans, the stamp act, the black cockade, and the standing army in time of peace. It was one of the contrivances of that disastrous period for extorting money from the people, for the support of that strong and splendid government which was then the cherished vision of so many exalted heads. The reforming hand of Jefferson overthrew it, and all the superstructure of fishing allowances which was erected upon it. The exigencies of the late war caused it to be revived for the term of the war, and the interest of some, and the neglect of others, have permitted it to continue ever since. It is now our duty to sink it a second time. We profess to be disciples of the Jeffersonian school; let us act up to our profession, and complete the task which our master set us."

CHAPTER XLIX.

BANK OF THE UNITED STATES

It has been already shown that General Jackson in his first annual message to Congress, called in question both the constitutionality and expediency of the national bank, in a way to show him averse to the institution, and disposed to see the federal government carried on without the aid of such an assistant. In the same message he submitted the question to Congress, that, if such an institution is deemed essential to the fiscal operations of the government, whether a national one, founded upon the credit of the government, and its revenues, might not be devised, which would avoid all constitutional difficulties, and at the same time secure all the advantages to the government and country that were expected to result from the present bank. I was not in Washington when this message was prepared, and had had no conversation with the President in relation to a substitute for the national bank, or for the currency which it furnished, and which having a general circulation was better entitled to the character of "national" than the issues of the local or State banks. We knew each other's opinions on the question of a bank itself: but had gone no further. I had never mentioned to him the idea of reviving the gold currency – then, and for twenty years – extinct in the United States: nor had I mentioned to him the idea of an independent or sub-treasury – that is to say, a government treasury unconnected with any bank – and which was to have the receiving and disbursing of the public moneys. When these ideas were mentioned to him, he took them at once; but it was not until the Bank of the United States should be disposed of that any thing could be done on these two subjects; and on the latter a process had to be gone through in the use of local banks as depositories of the public moneys which required several years to show its issue and inculcate its lesson. Though strong in the confidence of the people, the President was not deemed strong enough to encounter all the banks of all the States at once. Temporizing was indispensable – and even the conciliation of a part of them. Hence the deposit system – or some years' use of local banks as fiscal agents of the government – which gave to the institutions so selected, the invidious appellation of "pet banks;" meaning that they were government favorites.

In the mean time the question which the President had submitted to Congress in relation to a government fiscal agent, was seized upon as an admitted design to establish a government bank – stigmatized at once as a "thousand times more dangerous" than an incorporated national bank – and held up to alarm the country. Committees in each House of Congress, and all the public press in the interest of the existing Bank of the United States, took it up in that sense, and vehemently inveighed against it. Under an instruction to the Finance Committee of the Senate, to report upon a plan for a uniform currency, and under a reference to the Committee of Ways and Means of the House, of that part of the President's message which related to the bank and its currency, most ample, elaborate and argumentative reports were made – wholly repudiating all the suggestions of the President, and sustaining the actual Bank of the United States under every aspect of constitutionality and of expediency: and strongly presenting it for a renewal of its charter. These reports were multiplied without regard to expense, or numbers, in all the varieties of newspaper and pamphlet publication and lauded to the skies for their power and excellence, and triumphant refutation of all the President's opinions. Thus was the "war of the bank" commenced at once, in both Houses of Congress, and in the public press; and openly at the instance of the bank itself, which, forgetting its position as an institution of the government, for the convenience of the government, set itself up for a power, and struggled for a continued existence – in the shape of a new charter – as a question of its own, and almost as a right. It allied itself at the same time to the political party opposed to the President, joined in all their schemes of protective tariff, and national internal improvement: and became the head of the American system. With its moneyed and political power, and numerous interested affiliations, and its control over other banks, brokers and money dealers, it was truly a power, and a great one: and, in answer to a question put by General Smith, of Maryland, chairman of the Finance Committee of the Senate already mentioned (and appended with other questions and answers to that report), Mr. Biddle, the president, showed a power in the national bank to save, relieve or destroy the local banks, which exhibited it as their absolute master; and, of course able to control them at will. The question was put in a spirit of friendship to the bank, and with a view to enable its president to exhibit the institution as great, just and beneficent. The question was: "Has the bank at any time oppressed any of the State banks?" and the answer: "Never." And, as if that was not enough, Mr. Biddle went on to say: "There are very few banks which might not have been destroyed by an exertion of the power of the bank. None have been injured. Many have been saved. And more have been, and are constantly relieved, when it is found that they are solvent but are suffering under temporary difficulty." This was proving entirely too much. A power to injure and destroy – to relieve and to save the thousand banks of all the States and Territories was a power over the business and fortunes of nearly all the people of those States and Territories: and might be used for evil as well as for good; and was a power entirely too large to be trusted to any man, with a heart in his bosom – or to any government, responsible to the people; much less to a corporation without a soul, and irresponsible to heaven or earth. This was a view of the case which the parties to the question had not foreseen; but which was noted at the time; and which, in the progress of the government struggle with the bank, received exemplifications which will be remembered by the generation of that day while memory lasts; and afterwards known as long as history has power to transmit to posterity the knowledge of national calamities.