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interest on the loans which may be raised. * *2. That those expences, togeih. er with the interest of the debt, will, after the year 1808, amount to a sum less than seven millions of dollars, and therefore that if the present retenue of 14,500,000 dollars shall not be diminished more than one half by the war, it will still be adequate to the object, leaving only the interest of war loans to be provided for.

Whether taxes should be raised to a greater amount, of loans bé altogeth. er relied on for defraying the expenses of the war, is the next subject of consideration

Taxes are paid by the great mass of the citizens, and immediately affect almost every individual of the community. Loans are supplied by capitals previously accumulated by a few individuals. In a country where the re. sources of individuals are not generally and materially affected by wat, it is practicable and wise to raise by taxes the greater part at least of the annual supplies. The credit of the nation may also, from various circumstances, be at times so far impaired as to leave no resource but taxation. In both respects the situation of the United States is totally dissimilar.

A maritime war will, in the United States, generally and deeply affect, whilst it continues the resources of individuals, as not only commercial profits will be curtailed, but principally because a great portion of the surplus of ag: ricultural produce necessarily requires a foreign market. The reduced price of the principal articles exported from the United States will operate more heavily than any, contemplated tax. ing whether a similar cause may not still more dend without inquir:

and permanently atfoct a nation at war with the United States, it seems to follow, that so far as relates to America, the losses and privations caused by the war should not be aggravated by taxes beyond what is strictly necessary. An addition to the debt is doubtless an evil ; but experience having now shewn with what rapid progress the revenue of the union increases in time of peace, with what facility the debt formerly contracted has, in a few years, been res duced,a hope may confidently be entertained that all the evils of the war will be temporary and easily repaired, and that the return of peace will

, without any effort, afford ample resources for reimbursing whatever may have been borrowed during the war.

The credit of the United States is also unimpaired either at home or A broad, and it is believed that loans to a reasonable amount may be obtained on eligible terms. Measures have been taken to ascertain to what extent this muy be effected abroad ; and it will be sufficient here to suggests that the several banks of the United States may find it convenient after the en suing year, and as the diminished commerce of the country may require less capital, to loan to government a considerable portion of their capital stock, now computed at about orty millions of dollars.

It might be premature to enter into a particular detail of the several brasa ches of revenue which may be selected, in order to provide for the interest of war loans, and to cover deficiencies in case the existing revenue should fall below seven millions of dollars. A general enumeration seems at presta ent sufficient.

L: Not only the duty on salt and the Mediterranean duties may be immer diately revived: but the duties on importation generally may, in case of war, be considerably increased, perhaps doubled with less inconvenience than would arise from any other made of taxation. Without resorting to the example of otlier nations, experience has proven that this source of revo chue is in the United States the most productive, the easiest to collect and the least barthensome to the great mass of the people. In time of war the danger of smuggling is diminished, the scarcity

of foreign

articles prevents the duty ever falling on the importer,

the consumers are preciselyetlions members of the community who are best

able to pay the duty; and the in

crease of Domestick Manufactures which may be indirectly affected, is in it. self a desirable object,

2. Indirect taxes, however ineligible, will doubtless be cheerfully paid'as war taxes, if necessary. Several modifications of the system formerly adopted, might, however, be introduced, both in order to diminish some of the inconveniences which were experienced, and particularly to ensure the collection of the duties.

3. Direct taxes are liable to a particular objection arising from the una. voidable inequality produced by the general rule of the constitution. Wbataver difference may exist between the relative wealth,and consequent ability of paying, of the several states, still the tax must necessarily be raised in proportion to their relative population. Should it, however, become necessary to resort to that resource, 'it is believed that the tax raised upon that species of property in each state which, by the state laws, is liable to taxaLion, as liad originally been contemplated by congress, would be preferable to a general assessment laid uniformly on the same species of property in all the states, as was ultimately adopted.

10:!! 0121512 HORA All which respectfully submitted.

ALBERT GALLATIN, Secretary of the Treasury Treasury Department, Nov. 5, 1807.19

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BRITISH PROCLAMATION.

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BY THE KING.
A Proclamation for recalling and prohibiting Seamen from serving Foreigu

Princes and States.
GEORGE R.- Whereas it bath been represented unto us, that great
numbers of marines and seafaring men, our natural-born subjects, have been
enticed to enter into the service of foreign states and are now actually serving
aš well on board the ships of war belonging to the said foreign states, as on
board the merchant vessels belonging to their subjects, not withstanding our
former Proclamation recalling them, contrary to the duty and allegiance
which our said subjects owe unto us, and to the great disservice of their
native country; we have therefore thought it necessary at the present mos
ment, when our kingdom is menaced and endangered, and when the maris
time rights, on which its power and greatness do mainly depend, are disa
puted and called in question, to publishi, by and with the advice of our Privy
Council, this our Royal Proclamation

We do hereby strictly charge and command all-masters of ships, pilots,mar-
iners, shipwrights, and other seafaring men being our natural-born subjects,
who may have been enticed into the pay or service of any foreign state, or do
serve in any foreign ship or vessel, that, forth with, tbey and every of them do
(according to their bounden duty and allegiance, and in consideration that
their native country bath need of all their services ) withdraw themselves, and
depart from, and quit such foreign services, and do return home to their na-
tive country; or dolenter on board such of our ships of war as they may
chance to fall in with, either on the high seas, or in any rivers, waters, ła.
vens, roads, ports, or places whatsoever or wheresoever..
o? And, for the better execution of the purposes of this our Royal Proclama-
tion, we do authorise and command all captains, masters, and others command-
ing

our ships and vessels of war, to stop and make stay of all and every such person or personal (being our natural dorn subjects) aarshall endeavour to transport or enter themselves into the service of any foreign state, contrary to the intent and command of this outroyal proclamation, and to seize upon, Jake, $1 Arne ; Yuheat raqotada a vill, IMO ::quls !

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and bring away all such persons as aforesaid, who shall be found to be en ployed or serving in any foreign merchant ship or vessel as aforesaid :-but we do strictly enjoin all such our captains, masters, and others, that they do permit no man to go on board such ships and vessels belonging to the states at amity with us for the purpose of so seizing upon, taking, and bringing away such persons as aforesaiila for whose discreet and orderly demeanour the said captains cannot answer, and that they do take especial care that no unnecessary violence be done or offered to the vessel, or to the remainder of the crew, from out of which such persons shall be taken.

And in case of their receiving information of any such person or persons being employed, or serving on board of any ship of war belonging to such foreign state, being in a state of amity with us, we do authorise and command our captains, masters, and others, commanding our ships of war, to require of the captain or commander of such foreign ship of war, that he do forth with release and discharge such person or person being our naturalborn subject or subjects ; and if such release and discharge shall be refus. ed, then to transmit information of such refusal to the commander-in-chief of the squadron under whose order such captain or commander shall be then serving ; which information the said commander-in-chief is bereby strictly directed and enjoined to transmit, with the least possible delay, to our Minister residing at the seat of Government of that state to which the said foreign ship of war shall belong, or to our Lord High Admiral, or Lords Commissioners of the Admiralty for the time being, in order that we, being apprised of such proceeding, may forth with direct the necessary steps to be taken for obtaining redress from the Government to which such foreign ships of war shall belong, for the injury done to us by the unwarranted detention of our natural-born subjects in the service of a foreign state.

And whereas it has further been represented unto us that divers mariners and seafaring men, our natural born subjects, have been induced to accept letters of naturalization, or certificates of citizenship, from foreign states, and have been taught to believe that, by such letters or certificates, they are discharged from that duty of allegiance which as our natural-born subjects, they owe to us ; now we do hereby warn all such mariners, seafaring men, and others our natural-born subjects, that no such letters of naturalization, or certificates of citizenship, do or can, in any manner,divest our natural-born subjects of the allegiance,or in any degree alter the duty which they owe to us, their lawful Sovereign. But, in consideration of the error into which such mariners and seafaring men as aforesaid may have been led, We do hereby publish and declare our free pardon to all such our subjects, who, repenting of the delusion under which they have acted, shall immediately upon knowl. edge of this our royal proclamation, withdraw themselves from foreign service,and returu to their allegiance to us ; and we do declare that all such our subjects, who shall continue in the service of foreign states in disregard and contempt of this our royal proclamation, will not only incur our just displeasure, but are liable to be proceeded against for such contempt, and shall be proceeded against accordingly ; and we do hereby declare, that if any such masters of ships, pilots, mariners, seamen, shipwrights, or other seafaring men (being our natural-born subjects) shall be taken in any foreign service by the Algerines, or other Barbary Powers, and carried into slavery, they shall not be reclaimed by us as subjects of Great-Britain.

And we do further notify, that all such our subjects as aforesaid, who have voluntarily entered, or shall enter, or voluntarily continue to serve on board of any ships of war belonging to any foreign state at enmity with us, are and will be guil. ty of high treason :- and we do by this our royal proclamation declare that They shall be punished with the utmost severity of the law,

Given at our Court, at the Queen's Palace, the 16th day of October, 1897, and in the 17th your of our reign. God save the King.

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