The Government Class Book - Part 11
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Part 11

--7. The next clause of the third section provides for the gradual change of the senate. One-third of the senators go out of office every two years. In favor of this arrangement are two important considerations.

First, it secures to the public at all times the benefit of the experience of at least two-thirds of the body. Whereas, if the terms of all the senators expired at once, their places might be supplied mainly by new members without the requisite knowledge and experience. Secondly, while a long term is intended to guard against the too frequent changes in the laws, it may also prevent, for too long a time, the amendment or the repeal of bad laws. Such amendment or repeal may be hastened by the election of new members in the place of the one-third who retire every two years.

--8. Vacancies which happen in the representation of any state in the senate during the recess of its legislature, may be filled by the governor until the next meeting of the legislature. Without this provision, either the legislature must be a.s.sembled immediately to fill the vacancy, or the state must remain in part, or perhaps wholly unrepresented in the senate, until the next regular session of the legislature.

--9. But an appointment may not be made by an executive before the vacancy actually happens. In 1825, the term of a senator was about to expire during the recess of the legislature of his state, which had failed at its previous session to appoint a successor. As a special session of the senate was to be held immediately after the expiration of the senator's term, the governor, a few days before the term expired, in antic.i.p.ation of the vacancy, reappointed the senator. But the senate decided that, as the appointment had been made _before the vacancy happened_, the senator was not ent.i.tled to a seat.

--10. The next clause prescribes the qualifications of senators. A senator must have attained the age of thirty years, and been nine years a citizen of the United States; and he must, when elected, be an inhabitant of the state for which he is chosen. As many of the duties of a senator require more knowledge, experience, and stability of character than those of a representative, greater age and longer citizenship are required. The nature of these duties will be noticed in subsequent chapters.

--11. The seventh section of the first article provides for the pa.s.sage of bills negatived, or vetoed, by the president. Bills returned by him with his objections, become laws when pa.s.sed by majorities of two-thirds of both houses; that is, by two-thirds of the members present. They also become laws if not returned by him within ten days (Sundays excepted) after they have been presented to him, unless their return is prevented by the adjournment of congress.

--12. We have pa.s.sed over several sections and clauses of this article without remark. Most of them are similar to some in the state const.i.tutions, which we have noticed; and the propriety of others is so readily perceived, that any comment upon them is deemed unnecessary.

Chapter x.x.xI.

Power of Congress to lay Taxes, Duties, &c.; Power to Borrow Money.

--1. Having shown how the legislative department of the general government is const.i.tuted, we proceed to consider its powers. It is thought proper, however, first to notice one important characteristic of the general government, in which it differs from the state governments, and the knowledge of which is necessary to a right understanding of the powers of the state and national governments respectively.

--2. The general government is a government of _delegated_ powers; that is, powers which have been intrusted or _delegated_ to it by the states, or the people of the states. Having derived its powers from the states, or the people, it has such powers only as have been conferred by the const.i.tution. Hence it is called a government of _limited_ powers. The states, on the other hand, existing before the general government, and possessing entire sovereignty or supreme power, may exercise all powers which they have not surrendered to the general government. In other words, their powers are _unlimited_, except so far as they have parted with any of their original powers.

--3. Most of the powers of congress are enumerated in the eighth section of the first article of the const.i.tution. The first in the list is in these words: "Congress shall have power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts, and excises shall be uniform throughout the U. States."

--4. We have already noticed the want of such a power in the old congress. The debt which had been contracted to carry on the war remained unpaid; and congress, as we have seen, had no power to raise money either to pay debts or to defray the current expenses of the government. (Chap. XXVII: --4, 6.) It could neither raise money by _direct_ taxation; that is, by taxing the persons and property of the citizens, nor by _indirect_ taxation, which is by duties.

--5. _Duties_, or _customs_, are taxes on goods imported from, or exported to, a foreign country. _Imposts_ are taxes on imported goods only. Duties on exports, however, being deemed inexpedient, are not laid by our government. An _excise_ is a tax neither on imports nor exports, but on articles produced and consumed in the country, and on licenses to deal in certain commodities. The money paid for license to sell spirituous liquors is an _excise_ tax.

--6. Duties are _specific_ and _ad valorem_. A _specific_ duty is a specified sum of money charged upon every yard, pound, or gallon of any commodity. Thus, a duty of ten cents on a pound of tea, or of one dollar on a yard of cloth, or of fifty cents on a gallon of wine, is a specific duty. _Ad valorem_ is a Latin phrase, signifying _according to the value_. An _ad valorem_ duty is a certain _per centage_ on the value or price. Thus, thirty per cent, on a yard of cloth costing two dollars, is sixty cents; on a yard costing three dollars, ninety cents; the sum charged being varied by the difference in the price or value.

--7. The power to lay duties is very properly qualified by the provision that "all duties shall be uniform throughout the United States." This was intended to prevent the giving of unjust preference to any one or more states over others. Without this restriction upon the exercise of this power, the representatives of a part of the states might combine, and by laying higher duties upon goods imported into other states, than upon those imported into their own, might turn the trade chiefly into the latter. Or they might in laying duties on exports, impose high duties upon the productions of other states, and low duties, or none at all, upon the products of their own.

--8. Although Congress has power to lay direct taxes, it has seldom been exercised. The duties on foreign goods and on the vessels in which they were imported, have been found sufficient for the payment of the public debt, and for other government purposes. The national debt in 1791 was about $75,000,000, and, in 1804, had risen to $86,000,000; yet chiefly by duties was this debt reduced nearly one-half by the year 1812. By the war which commenced that year, the debt was again increased, being in 1816, $127,000,000. In 1835, this large debt had been, in the manner stated, entirely extinguished.

--9. The next power mentioned is the "power to borrow money on the credit of the United States." Although Congress may, under the power to lay taxes and duties, raise money to any extent, a large amount may sometimes be wanted before it can be raised from the regular income or revenue of the nation, or even before it could be raised by a direct tax, which would be burdensome to the people. Hence the utility of the power to borrow money until it can be reimbursed from the national revenues.

Chapter x.x.xII.

Power of Congress to Regulate Commerce. Commerce with Foreign Nations.

--1. Next in the list of powers is "the power to regulate commerce with foreign nations, and among the several states, and with the Indian tribes." The need of no power under the confederation was more deeply felt than the power to regulate foreign trade. It was the want of this power, as we have seen, which was the more immediate cause of calling the convention that framed the const.i.tution. (Chap. XXVII: --7-11.) The necessity of this power arose mainly from the policy of Great Britain, by which she had secured to herself undue advantages in her foreign commerce, especially in her trade with this country.

--2. During the war of the revolution, the direct trade with Great Britain was interrupted. But when peace was restored, our markets were again open to British goods and vessels, while upon American produce and American vessels entering British ports, heavy duties were levied. To enable some young readers more clearly to understand the objects and the unequal operation of the policy of the British government, the subject may need some further ill.u.s.tration.

--3. One object was, to secure a market at home for the products of agricultural labor. How this is done by taxing foreign products, will appear from the following example: Suppose the market value of a bushel of wheat in Great Britain to be one dollar a bushel, and the cost of raising the article here and carrying it to that market to be the same.

If now a duty of 40 cents a bushel is laid upon wheat from abroad, the English consumer, instead of buying it with this duty added, will buy of the English producer. But more wheat is produced here than there is a market for; and the American farmer must find a market abroad. But in order to sell it in the English market, he must pay 40 cents on every bushel to the British government; or, which is the same thing in effect, he must sell it for 40 cents a bushel less than its value to the British purchaser, who pays the duty to that government.

--4. Now, as much less American wheat will be sent to Great Britain than if it were free from duty, a better market is secured to the English farmer. Besides this, of the value of every bushel which Great Britain may please to admit, or which the people of other countries maybe obliged to sell to her, 40 per cent, is paid into her treasury. Thus by one operation, are two benefits secured, namely, the reward of agricultural labor at home, and the raising of revenue. So by the duties imposed upon foreign vessels entering her ports, the national revenue was to some extent increased, and great advantages were secured to her citizens engaged in the carrying trade.

--5. The people of this country being nearly all employed in agriculture, and consequently dependent upon foreign markets for the sale of the surplus products of their labor, they were obliged to submit to the payment of these duties. And not possessing at that time the means of manufacturing to any considerable extent for themselves, goods in large quant.i.ties came in from Great Britain, for which they must pay in produce heavily burdened with duties, or with money obtained for the produce subject to these heavy duties.

--6. To remove the inequality in the trade between the two countries, it was thought necessary to retaliate upon Great Britain by subjecting her goods and vessels coming into our ports to the payment of duties similar to those imposed on our produce and vessels in her ports. But the power to lay duties was with the states; and, as we have seen, the states could not agree upon any effectual system; for, in order to make any system effectual, the duties must be uniform throughout the United States.

--7. It was intended, in regulating trade, to render our own country less dependent upon foreign nations for manufactured goods, by encouraging domestic or home manufactures by duties on goods imported. Duties laid for this purpose are called _protective_ duties, being designed to _protect_ our manufacturers against loss from the compet.i.tion of foreigners. The nature and operation of a protective duty may be thus ill.u.s.trated:

--8. Suppose foreign broadcloth of a certain quality is sold in this country for $2.50 a yard, and cloth of the same quality manufactured here can not be afforded for less than $3 a yard. There would now be no encouragement to any one to engage in the manufacture of such cloth; because in order to sell it, he must reduce the price to that of the foreign article, which would subject him to a loss of fifty cents a yard. Let now a duty of $1 a yard be laid upon the foreign cloth, and the price would be $3.50, and preference would be given to the domestic article, unless the importer should reduce the price of his foreign cloth to $3; in which case, it is to be presumed, about an equal quant.i.ty of each would be consumed, and the duty of $1 a yard on the foreign cloth would go into the United States' treasury.

--9. The same objects may, to some extent, be effected by the first mentioned power, "to lay taxes, duties," &c. In laying duties for revenue, that is, raising money to pay the debts and other expenses of the government, congress may lay the duties upon those kinds of goods which it wishes to protect; and thus _indirectly_ both encourage domestic industry and regulate commerce. From this it appears that the three objects mentioned may be accomplished under the grant of either one of the two general powers, to lay duties, and to regulate commerce.

--10. Why, then, it may be asked, were both these powers inserted in the const.i.tution? The first _expressly_ authorizes the laying of duties only to raise money for paying debts and government expenses; and protection and the regulation of commerce can only be effected _indirectly_. Hence, if our arrangements with foreign nations should be such as to render it unnecessary to lay duties to regulate commerce, or encourage domestic industry, money could not be raised without the _express_ power to lay taxes, duties, &c. And such might be the state of things, that rates of duties sufficient for revenue would be insufficient for the purposes of protection and regulating trade. Therefore, both powers are properly granted to congress.

--11. Again, it may be asked, if foreign goods without duty can be had at lower prices than domestic, why is it not better for us to buy them than to force the manufacture and sale of our own at higher prices? and, if there is no other way of raising money, why not do it by direct taxation? Suppose, for example, as in a preceding section, (--8,) the price of foreign cloth to be $2.50 a yard, for which the farmer has to pay in wheat, or in cash received for it. But as the wheat has to be shipped to a foreign market, the merchant who takes it in exchange for the cloth, or the cash purchaser, deducts from the foreign market price the cost of transportation and the foreign duty, which, together, let us suppose to be fifty cents a bushel, or one-half of the foreign market price. A yard of cloth would then cost five bushels of wheat.

--12. Let us now suppose a domestic article at $3 a yard to take the place of the foreign. A large portion of the laborers formerly employed in agriculture, are now engaged in building factories and in manufacturing. These, instead of being producers, have become only consumers of the wheat of the farmers, who now have a market at home, thus saving the duties and the cost of transportation. As there are now fewer producers, the price of wheat would probably be not less than $1 a bushel. Therefore a yard of domestic cloth would cost only _three_ bushels of wheat, instead of _five_ paid for the foreign cloth. And as there would be a corresponding rise in the price of labor, more cloth at $3 a yard could be bought for the avails of a day's labor than formerly.

--13. The protection of domestic industry received the early attention of congress. The second law pa.s.sed by the first congress under the const.i.tution, authorized "duties to be laid on goods, wares, and merchandises imported;" and among the objects of the law expressed in a preamble one was "the encouragement and protection of domestic manufactures." For a long time, however, little was done in the way of protection. The princ.i.p.al nations of Europe, England included, became involved in war. A large portion of their laboring population having been called from agricultural pursuits into the armies, a foreign demand was created for American produce; and we were enabled to supply ourselves at less disadvantage with foreign manufactures.

--14. But after peace had been restored in Europe, and people had returned to their usual employments, the foreign demand for our breadstuffs nearly ceased; and large quant.i.ties of foreign goods were again imported, for which our people were unable to pay. Congress now found it necessary to exercise, to a greater extent, its power to regulate trade, by discouraging importations, and encouraging domestic manufactures, and, in 1816, commenced an effective system of protection. Laws have from time to time been pa.s.sed to favor manufactures from cotton, wool, iron, and other materials; and manufacturing is now carried on extensively in this country. By thus drawing a large portion of the people into manufacturing and mechanical employments, a market has been created at home for more grain, meat, and other agricultural products, than is required to supply all foreign demand.

--15. The laws relating to foreign commerce prescribe the manner of collecting the revenue. There is in every port of entry a _collector_ of _customs_, who superintends the collection of duties. When a vessel arrives it is submitted, with the cargo and all papers and invoices, to the inspection of the proper officers; and the goods subject to duty are weighed and measured, and the duties estimated according to law.

Chapter x.x.xIII.

Power to regulate Commerce, continued. Navigation; Commerce among the States, and with the Indian Tribes.

--1. In regulating foreign commerce, congress has also pa.s.sed navigation laws. _Navigation_ is the art of conducting ships and other vessels. It has reference also to the rules to be observed by owners and masters engaged in the shipping trade. We have noticed the navigation acts of Great Britain by which she built up her shipping interest; (Chap. XXVII, --7,) and we have stated that one object of the power to regulate commerce was to countervail the effects of those acts upon our shipping.

--2. To encourage and promote domestic navigation, an act was pa.s.sed by the first congress conferring special privileges upon vessels built and owned by citizens of the United States. This was done by laying _duties on tunnage_. _Tunnage_ means the content of a ship, or the burden that it will carry, which is ascertained by measurement, 42 cubic feet being allowed to a tun. This act imposed a duty of fifty cents a tun on foreign vessels, and upon our own a duty of only six cents a tun. As such a law discriminates, or makes a distinction or difference between domestic and foreign vessels, these duties are also called _discriminating_ duties.

--3. By the aid of these protective duties, slightly changed from time to time, our shipping interest acquired great strength. But the necessity of discriminating duties no longer exists. By the stipulations of existing treaties between the princ.i.p.al commercial nations, each is to admit into her ports the vessels of the others on equal terms with her own. Our government having become a party to this agreement, discriminating tunnage duties have been abolished.

--4. The registry, however, of vessels of the United States, and other regulations concerning them, are for the most part continued. A vessel is measured by a surveyor to ascertain her tunnage, and the collector records or registers in a book her name, the port to which she belongs, her burden or tunnage, and the name of the place in which she was built, and gives to the owner or commander a certificate of such registry.

--5. The master of a vessel departing from the United States, bound to a foreign port, must deliver to the collector of the district, a _manifest_, which is an invoice, or account of the particulars of a cargo of goods, and of their prices or value. This statement is subscribed by the master, and sworn by him to be true. The collector then grants a _clearance_, for the vessel, which is a certificate stating that the commander has cleared his vessel according to law.