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16 • American Finances (1789)
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223 Reprinted from Jared Sparks, The Life of Gouverneur Morris, with Selections from his Correspondence and Miscellaneous Papers (Boston: Gray & Bowen, 1832), 3:469–78.The title is the one given by Morris in his letter to Robert Morris. 1. Miller, Envoy to the Terror, 10–14. 2. GM to Robert Morris, May 8, 1789, quoted in Sparks, Life, 3:469. 16 • American Finances (1789) Morris had long wanted to go to Europe, and in 1788 his business ventures with Robert Morris at last gave him a reason to do so. Robert’s fortunes began their long decline in 1787 when his London agent suddenly defaulted. Gouverneur’s mission was to try to pick up the pieces as best he could, and especially to save the large contract with the FarmersGeneral of tobacco in France. Besides this damage control, he intended to pursue some other ventures, including purchasing the American war debt to France and selling land in New York.1 On his journey to Europe, Morris spent some time collecting his thoughts on American affairs.2 On arriving in Paris, he had extensive discussions with Thomas Jefferson, then American minister to France, on American affairs and particularly on finance. This paper was one result of those conversations. It was completed sometime that spring, and enclosed with the letter to Robert Morris of May 8. •• The establishment of a new Constitution in America, while it raises the hopes of all true friends to liberty, cannot remove the apprehensions of many, who are intimately acquainted with the affairs of the United States. Those gentlemen, therefore, who are called to act a part on that first great theatre of American legislation, to which the eyes of all are directed with expectation and anxiety, will feel the importance of the duties they are to perform, and, impressed with such feelings, they will not perhaps withhold a moment’s attention to the ideas of an individual, who has no other claim to their notice, than a zeal for the public welfare. 224 chaPtEr 16 Among the subjects, which must occupy the deliberations of Congress, those of Finance will demand a principal share. To make effectual provision for the foreign debts, and for those which are due to their fellow citizens , to obtain the sums requisite for current service, to establish on a firm basis the national credit, these are objects which must contribute to reputation abroad, tranquillity at home, security everywhere. All will agree in the propriety of revenue for these important purposes, and so long as the government shall confine itself to general theoretic propositions, universal assent may be expected, but the instant any step is taken towards the necessary end, opposition from some quarter or other will certainly arise; and although the progress towards that end must not be retarded by slight obstacles , yet some may be encountered, which cannot be surmounted, and which ought therefore to be avoided. The national treasury has an exclusive right to all duties and imposts on commerce, but the commercial States have already laid duties, and incorporated them into their domestic systems of revenue and administration . Some have appropriated them as a fund for payment of the State debts, others, to the discharge of debts due by the Union, which they have adopted. If then these revenues be taken from the States, without any provision for their relief, it would excite disgust among many friends of the new Constitution, and furnish weapons to its enemies. A plausible pretext would be given for opposition to such of the State Legislatures as are inclined to oppose. They would excuse whatever systems they might adopt, upon the ground of necessity, and thus every vice in such systems would adroitly be charged to the account of Congress. There is a concurrent jurisdiction, respecting internal or direct taxes, but each of the States has laid hold of that, which accords best with the prejudices of its citizens, and is consequently least repugnant to their feelings. Hence the needful resort to this species of revenue will either increase the burthen upon those things which now bear it, or falling on new objects excite apprehension, perhaps disgust, and even opposition. It is the vice of direct taxation, that collectors ask money from those who generally speaking have none to give, and the payment being involuntary produces complaint . But while there exists a party disposed to propagate and magnify every ground of disgust and disaffection, a more than usual degree of caution becomes needful on...