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A Century of Lawmaking for a New Nation: U.S. Congressional Documents and Debates, 1774-1875
Dear Sir. Philadelphia Feby. 20th. 1782 I postponed sending the Letter dated Feby. 12th being then doubtful whether it was best or even prudent for me to write at all upon that Subject or the several Matters herein mentioned as I have not had Time to weigh them well; But as I am sure of your Candour & that these Matters will rest with you alone, upon my particular Request, I hesitate no longer.
The Plan of the 18th of March, (which I think the Feelings of Massachusetts will not permit them to forget very soon) was productive of Burthens which your Citizens now groan under on Account of the old Currency. But there are three Ways by which the suffering Individuals might yet be releived-Tho I cannot flatter myself that either will be adopted at present. One is a Permission to Loan it. This the Financier will not consent to because he has no permanent Funds to discharge the Interest & you have not agreed to the Duty of five per Cent, till this is done all your Exertions will be considered in a different Point of Light from what they ought to be.
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Portrait of
Samuel Osgood
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The Second is Liberty to discharge the Requisitions of Congress. This probably would afford more immediate Relief than the other & I don't know how Congress could reject it if you should collect it for your Deficiencies on the past Requisitions excepting those for hard Money, it might possibly create some Difficulties but Congress has no compulsory Power over the State & I beleive they would finally do that which would be right respecting it. The third is, that the Resolutions of March 18th so far as they Respect calling in the old Money should be immediately complyed with by all the States therein mentioned. This alone seems at present to comport with the Ideas of the Financier. If Congress had any Authority at all & could enforce a Compliance from the delinquent States in any reasonable Time, it would be the most advantageous Relief to the present Holders of that Money. But you know their Authority. From all the Conversations I have had with the Financeir, I am perswaded he is most anxiously concerned that Justice should be done to the several States in the Settlement of their Accounts with the united States and that they should be adjusted as soon as possible. By his Letters to the State I think you approve in general of his Ideas respecting the Matter. His Situation is certainly very uncertain & precarious-we have either very little need of such an Officer; or it is, in Case he is needful, absolutely necessary to support him. If by the Confederation the several States are to feed, pay & Cloath their own Troops then the Office of a Financier cannot be of any great Consequence but if those matters are to be brot into a continental View the Office becomes exceedingly important & it requires great Consideration to know what is the most equal as well as sure Plan of supporting it. Congress have supposed, & the Financer is warm in the Opinion that it is a Duty on imported Articles. As yet Massachusetts, Rhode Island, Maryland, South Carolina & Georgia have not complyed with the Recommendation of Congress. The Necessity of adopting this Plan or some other seems to be very great when it is considered that there is no Kind of Certainty in the Requisitions. The Financier is so determined upon the Plan of a Duty that I apprehend he thinks it is impossible for him to continue in his Office unless it is complyed with. He espouses & maintains the Justice, Equality & Policy of the Plan with great Warmth yet as it is not a prerogative of Congress by the Confederation every State is at Liberty upon mature Deliberation to adopt or reject it as they may think expedient.
I am very unhappy to find that my Ideas do not coincide with the Financiers upon this important Matter. It has ever appeared to me that such a Kind of Tax would be far from operating equally when the Extensiveness of the Country is considered & their exceeding different Modes of living & supplying themselves. I would most willingly impute it to my contracted Notions of the Matter if I found Men of Discernment almost universally against me. The Certainty
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of the Fund has appeared a much better Argument in Favor of the Duty, to me, than that drawn from its operating equally. If by equal is meant that every one should pay in Proportion to his real Ability surely they will not. I know it is said that a Duty of five per Cent will have no Tendency to raise the Price of Country Produce; but this is far from being certain & should it be otherwise it would operate very unequally in the State in which it is collected as well as between the united States. But it is said the Consumer finally pays it. This is undoubtedly true. But do not those who live in Cities & Seaport Towns generally consume of imported Articles three to one more than People that live in the Country & of equal Ability. And even in Cities do not Men of very large Fortunes live like Misers? Ought they to be placed in a Situation that they may almost entirely escape Taxation? If a Miser's Hoards are very dear to him why should he pay less for the Protection of them than other Men? But it is said this Kind of Tax is paid insensibly & voluntarily, & that the Experience of other Countries teaches us that it is the best Mode as it excites the least Uneasiness in the Community at large: That this is good Evidence as to the Wisdom & Equity of the Mode. However plausible this Argument may appear it is not in my Opinion conclusive; because it is found necessary to enforce the Collection & payment of this Tax to have very severe Penalties. And notwithstanding the Action or Payment is voluntary it is no greater Evidence of the Chearfulness with which it is done-Than it is an Evidence of the Goodness of a Mans Intentions who to avoid the disagreeable Confinement of a Goal voluntarily takes an Oath of Allegiance to a Sovereign that he would not otherwise acknowledge. Where a Person has but a Choice of Difficulties he necessarily chooses that which appears to him the least. But granting that it is a certain & expeditious Way of collecting & upon the whole tolerably equal-Is it certain that this Mode is best adapted to promote the present & future Welfare of a free People? Will the Monies arising therefrom be so well accounted for as when a known & certain Sum is called for from the People, have not the Laws to enforce the Payment thereof always been evaded in numberless Instances by Men who would not like to be called dishonest in other Respects; yet they are not so sensible of moral or political Obligation in this Matter as to prevent their evading of it with a safe Conscience if they can do it with Safety to their Interests. It has a Tendency to habituate the People to the Idea of Bribery & Corruption for they have & ever will be practiced with great Ingenuity where Interest is so nearly concerned. But if it should finally be tho't expedient to comply would it not be wise that some Articles should pay a much heavier Duty than others. But, perhaps there may be one Matter to be settled which did not occur to me till now, before any Arguments need be adduced in Favor of, or against the Question; That is whether by the Constitution the Gen-
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eral Assembly is vested with Power to grant this Duty & that it shall be placed to the Credit of the united States in the first Instance. I am doubtful whether they have any such Authority upon a fair Construction of the Paragraph that Respects Imports & Duties & the Appropriation of the Money arising therefrom.
If this is no Hindrance I have another objection which I wish to have fairly weighed. It is this, in Case all the States agree to it & the Payment & Collecting of the Duty is enforced by Ordinances of Congress-What Assurance has one State in the Union that the Laws will be alike & equally executed & if not where is the Power of Compulsions will Congress have any or the States that are injured but an Appeal to Arms? For Instance if an officer is appointed to collect the Duty in Massachusetts we must be sensible that the Ingenuity of hundreds will be employed to Bribe him as well as to evade the Law entirely. In Case of Complaint where & by what Court is the Tryal to [be] had?-undoubtedly within the State & by the Judicial Authority thereof. But will not the whole State be a Party against the other States? & is it not possible that they may be very deeply interested in the Decission so that a fair one can scarcely be had? Will not the State whose Trade shall apparently encrease be ever suspected of conniving at & secretly favoring a Breach of the Law? The States being free & independent Sovereignties will naturally be Jealous of each other & this may possibly be a direct Means of encreasing it. It is said that Farming out the Duty will prevent any Difficulty of this Kind-But I am not certain that it will. If there is great Probability that the Difficulty which I have started will take Place, for the sake of Justice let us deprecate a Repetition of the 18th of March or something worse.
I am very much in Favor of permanent & certain Funds. They must be established, or if the War is continued our Union, Independence & every Thing relative thereto after all the Blood & Treasure we have lavished to support them will be in very great Danger of being lost entirely. It is apprehended that another Campaign will determine us to be free & independent States if we exert our Selves properly, a due Proportion of which Exertion I have no doubt but Massachusetts will make notwithstanding all the Difficulties she labours under.
I think it is absolutely necessary that you should inform Congress as soon as possible that you agree to the Duty as recommended or that you do not-or that you will only agree to it conditionally, provided the State is credited for the Amount of the Duty.
Thus have I with Freedom opened my Sentiments, pray let them not rise up in Judgment against me.
I am, Sir, with great Respect, Your most humble Servant,
Samuel Osgood
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N.B. I have enclosed a late Letter of the Financiers to Congress.(1) I was obliged to Copy it very hastily I cannot assure you it is perfectly correct. As Congress may possibly agree to forward this Letter to the States it may probably be better to keep it safe: & as the Subject Matter is also before Congress. I have also enclosed an Act of the State of Delaware for your perusal.(2) This you will see was lately pass'd.
RC (DLC: Osgood Papers).
1 Osgood probably inclosed a copy of Robert Morris' February 18 letter to President Hanson recommending appointment of commissioners to settle the accounts of the staff departments and requesting that the states grant such commissioners authority to summon "Persons and Papers and to examine Witnesses upon Oath." Osgood was a member of the committee whose report formed the basis for the resolutions adopted by Congress this day to settle such public accounts. See JCC, 22:82-86; and Morris, Papers (Ferguson), 4:250-53.
2 Osgood undoubtedly inclosed a copy of Delaware's November 13, 1781, act ratifying the five percent impost duty, which Congress only received on February 19 in a February 12 letter from Delaware president John Dickinson. See JCC, 22:81n.1; and PCC, item 70, fols. 773-77, 783-84.
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