ratified. It was supposed to confer upon the general gov. ernment a power which could be too extensively exercised. It was said, that the power of congress ought to be restricted to the laying of indirect taxes, or duties on imports, except when the revenue from these should be insufficient for the public exigency; and that the states could better judge of the circumstances of their citizens, and of the most convenient manner of raising taxes. And it was proposed that the general government should first require the states to pay their respective quotas into the national treasury; and that when they should fail to comply with the requisi tion, congress might pass acts for their collection.

§ 269. On the other hand it was observed, that to provide for the security of the nation, to advance its prosperity, and maintain its credit, a full and complete power of taxation was necessary. The revenue arising from import duties might be sufficient to pay the public debt, and to supply the public wants in a state of peace. But the operations of war are sudden, and call for large sums of money. Experience had proved, that collections from the states were at best slow and uncertain, and that no dependence could be placed on them. A general power of taxation was necessary also to sustain the public credit. In providing for the defence of the nation, the government must have recourse to large loans. But persons would not readily lend money to a government which must itself depend upon thirteen other governments for the means of fulfilling its contracts. The power to create funds by taxation, would enable the govern. ment to borrow to the extent of its necessities.

§ 270. The power of taxation extends to all kinds of taxes; but it can levy them for no other purpose than that of paying the debts of the nation, and of providing for its defence and general welfare. And all duties, imposts, and excises must be uniform throughout the United States. Without this provision, some states might be subjected to the payment of higher duties than others, and the interests of one state be sacrificed by undue preferences given to

What objections were made to this clause? § 269. What reasons were given in favor of an unlimited power of taxation? § 270. For what purposes only may taxes be laid? Why ought they to be uni

those of other states. Farther provision has been made in the constitution for preserving the equal rights of the states. (§ 436.)

§ 271. Duties are laid on imports and tonnage. Impost duties are either specific or ad valorem. A specific duty is a tax of a certain, fixed amount, on an article by weight or measure. Thus, a duty of ten cents on a pound of tea, or of thirty cents on a yard of cloth, is called a specific duty. Ad valorem is a Latin phrase, signifying, according to the value. An ad valorem duty is one that is proportioned to the value of the goods; or, it is a per centage on the estimated cost or value of an article. A duty of fifty per cent., that is, a duty laid at the rate of fifty cents on every hundred cents of the price of an article, is an ad valorem duty. A duty of fifty per cent. on a yard of cloth valued at one dollar a yard, would make the duty fifty cents on the yard; but if the price of the cloth were one dollar and fifty cents a yard, the duty at fifty per cent. would be seventy-five cents, the amount of duty being greater, but in both cases bearing the same proportion to the value of the article.

§ 272. Duties are collected of the importer, on the sup position that the goods imported will be sold by him for home consumption. As duties on imports are intended principally to affect those goods which are brought from abroad, and consumed or used by our citizens, it has been provided by law, that, if the goods on which duties have been paid shall be re-exported, either the whole or a part of the duties shall be remitted to the importer. This al lowance is called a drawback. In England the practice prevails, to some extent, of allowing the merchant who imports a commodity which he may wish to export again, to deposit it in the public warehouse, giving a bond for the payment of the duties, should he dispose of it for home consumption. This is called bonding.

§ 273. In the United States, a drawback is allowed on goods re-exported to a foreign place within twelve months

form throughout the states? § 271. What are specific dutics? Ad valorem duties? Illustrate them by examples. § 272. What is a drawback? In what case is it allowed? § 273. On what conditions

after the duties on the importation have been paid, or se curity has been given for the payment of them: but such exportation must be made by the sea, in vessels of not less than thirty tons burthen; the duties on the goods must amount to fifty dollars; and the goods must be exported in the original packages in which they were imported. For the amount of the drawback to which the exporter is entitled, he receives from the collector a debenture, which is a certificate stating the sum due to the exporter for the drawback of duties.

§ 274. Tonnage is the weight of goods carried in a ship or boat; also, the cubical contents or burthen of a vessel in tuns. The duties charged on ships according to their burthen, or the number of tuns at which they are rated, are called tonnage duties. These duties are fixed by congress, in the regulating commerce and navigation. (§ 306, 307.)

§ 275. For the collection of customs or duties there is appointed in every district of the United States, a collector, whose duty it is to receive, at the port within his district, all reports, manifests, and documents to be made or exhibited on the entry of any vessel, to record all manifests, and to receive the entries of all vessels, and the goods imported in them. He is also required to estimate the duties, to receive all moneys paid for duties, and to take bonds for securing their payment. He grants all permits for the unlading and delivery of goods, and, with the approbation of the principal officer of the treasury, employs proper persons as weighers, measurers, gaugers, and inspectors at the ports within his district, and provides storehouses, scalcs, weights, and measures.

§276. At ports where it may be necessary, a naval officer and surveyor also are appointed. A naval officer receives copies of all manifests and entries, and, with the collector, estimates the duties on goods, and keeps a record thereof. He countersigns all permits, certificates, clearances, debentures, and other documents granted by the col

are drawbacks allowed? What is a debenture? § 274. What is tonnage? Tonnage duties? § 275. What is the business of a collector of customs? 276. What are the duties of a naval officer!

lector ; examines the collector's abstracts of duties and other accounts of receipts, bonds, and expenditures; and, if found correct, he certifies them. The surveyor superintends and directs the inspectors, weighers, measurers, and gaugers within his port. He visits and inspects the vessels that arrive; and makes a return in writing, every morning, to the collector of vessels arrived the preceding day. He is in all cases subject to the direction of the collector.

§ 277. In each of the large ports of the United States, two appraisers are appointed, to inspect and appraise such goods as the collector may direct, and whenever that duty shall be required by any acts relative to imports and tonnage. The collector, naval officer, surveyor, and appraisers, are appointed by the president and senate; all of whom but the last named are required to give bonds for the faithful performance of their duties.

§ 278. The master or captain of every vessel belonging to citizens of the United States, in which goods are imported, is required to have on board a manifest, which is a writing signed by himself, stating the name of the place where the goods were taken on board, and of the place to which they are consigned; the name, description, and tonnage of the vessel, and the place where she belongs; the name of each owner and her master, with a particular account of all the goods on board. It contains also the names of the consignors, who are the persons that send the goods, and the names of those to whom the goods are sent, called consignees.

§ 279. After the report of the master of the vessel to the collector is made, the owner or consignee of the goods makes an entry of the same, in writing, with the collector, specifying the names of the vessel and master, the place whence the goods were imported, the marks, numbers, denomination, and prime cost of the same, and swears to the truth of his statement, and its conformity to the manifest. When the amount of duties is ascertained, the consignees pay the same, or give bonds with sureties for the payment of them at a certain time. The collector then grants a written permit for the unloading and delivery of the goods.

Of a surveyor? § 277. What is the duty of appraisers? § 278. What is a manifest? Who are consignors and consignees? § 279. When is

§ 280. To secure the collection of duties, congress has made provision, by the imposition of heavy fines and penalties for the violation of the revenue laws, and by authorizing officers of the customs to seize and search vessels that may be suspected of having on board goods subject to duties, the payment of which is designed to be evaded. The getting of goods on shore secretly without paying the duties, is called smuggling. In cases of smuggling, and in some other cases of fraud on the customs, all the goods are forfeited, and become the property of the United States.

§ 281. Farther provision has been made for collecting the duties, by authorizing the president to cause to be built and equipped so many revenue cutters, not exceeding twelve, as may be necessary to protect the revenue. A revenue cutter is a small, fast sailing vessel used for apprehending smugglers, and for boarding vessels supposed to contain contraband goods. The collectors of the respective districts also may, with the approbation of the secretary of the treasury, provide small open row and sail boats to be used by surveyors and inspectors, to enable them to go on board vessels, and otherwise to detect frauds. All penalties accruing by breaches of the revenue laws, must be sued for in the name of the United States of America, in courts of the United States having jurisdiction in such cases.

66

CHAPTER VIII.

Power to borrow Money-Payment of the Public Debt.

"To borrow money

§ 282. CONGRESS shall have power, on the credit of the United States."Art. 1, sec. 8, cl. 2. § 283. The necessity of a general power of taxation has

the entry of a vessel made? What is an entry? A permit? § 280. What provision has been made to secure the collection of duties? What is smuggling? 281. What farther provision has been made to secure the collection of duties? What is a revenue cutter?

§ 283, 284. Why is the power to borrow money necessary? § 285.