Canadas, New Brunswick and Halifax, shall we have obtained the objects for which we take up arms? Certainly not. It will be necessary, therefore, that we should make every exertion to raise a force with which to protect and enforce our maritime rights.

If the resources of the U. States were competent to the object, he would say, establish such a navy as shall be able to cope with the British fleet at sea; but he knew this was not practicable; but, said Mr. N. we ought to do as much as we are able to do; we ought to put our navy on the best footing, as it is on the water that our rights are assailed. But he did not wish to extend his views further at present, than a sufficient force to clear our coasts of pirates and picaroons, to protect our ports and harbors, our coasting and our WestIndia trade.

Mr. N. thought it necessary to make this effort, in order to convince the nations of Europe, that the representations heretofore made of this country were erroneous; to shew them that we are competent to make exertions for the defence of our national rights, and willing to do so whenever necessary. He did not wish this nation to be considered as a great naval and military nation; but he wished the world to know, that we are at all times able and willing to maintain our rights whenever they are assailed--when we shall have established this character, said Mr. N. our rights will be respected.

Is commerce of no avail to this country? What is it that gives a spring to your agriculture? It is commerce. What is it that fills your treasury? Commerce. What paid your national debt? Commerce. What was it which procured a sale for your surplus produce? It is foreign commerce. If it produce all these benefits to the country, is it not, then, worth protection?

Commerce, both foreign and domestic, is necessary for this country. In a manufacturing country, a nation may, perhaps, dispense with commerce; but here, where we have no manufactures of any consequence, where agriculture is our chief interest, we could not exist without a commerce to find a market for the produce of our lands. But gentlemen say, our imposts are disguised taxes, which are anti-republican. He did not think so. The people, said Mr. N. understand the nature of an impost duty as well as we do. They know it is a duty laid on imported articles, which if they purchase, they pay; but they are at liberty to purchase them or not. But no man can avoid paying a direct tax, and if you have not the money to pay, your property will be sold to produce it.

Mr. N. said, an idea had suggested itself to him, which he would submit to the committee. We have tried the restrictive system in order to protect our commerce, and found it ineffectual, and are about to resort to another course. The expenses of the war will have to be provided for by loans, and it is proposed to resort to direct taxes in order to enable us to pay the interest of these loans. To prevent the necessity of having recourse to this mode of taxation, which would prove very oppressive to the people in some parts of

the country, he would propose a repeal of the non-importation law, and by this means, we should not only get the goods wanting for our trade with the Indians, but draw money into our treasury from impost duty; and if we had recourse to war, he saw no necessity for keeping this law in force.

Whence has arisen the opinion, at this time, said Mr. N. that to extend our navy would be attended with bad consequences-that it would be anti-republican? Can it it have been the cabalistic effect produced by the report of the Secretary of the Treasury? Or from what other cause? None of these apprehensions were entertained when the army bill was before the House, and he thought the danger to be apprehended from an army was infinitely greater than from a navy establishment. Mr. N. concluded with some further observations in favor of building the ten frigates proposed bythe bill, and against striking out the section.

After he sat down, Mr. Burwell made a motion for postponing the question till the 4th of February to give gentlemen time to deliberate upon it.

That motion being negatived, Mr. Smilie made a few observations against going any further with the navy establishment, and Mr. Widgery in favor of it; and the motion for striking out the section providing for the building of frigates, was carried out 62 to 59.

WAR TAXES.

MR. M'KIM's motion for recommitting the bill for the purpofe of fubftituting the amendment offered by him (proposing a tax on diftilled fpirits) for the other taxes, being under confideration

Mr. M'KIM faid-when this fubject was before the committee of the whole Houfe, on Thursday last, under an amendment, which I then had the honor to offer to the confideration of the committee. I have reafon to believe that the obje&t of the amend. ment, which was the fame in substance as that now offered, was not generally understood. I believe many gentlemen fuppofed that my fole object was to equalife the taxes propofed, or fo to modify the general lyftem of taxation propofed by the committee of Ways and Means, fo as that it fhould have a more equal bearing on the different fections of the country, and on the different claffes of fociety. This, it is true, Mr. Speaker, was in part my object, but this was only a minor part of it.

Mr. Speaker, the great object I had in view by the amendment, was to diminish the number of taxes propofed by the committee of Ways and Means, which I am of opinion will produce unneceffary difcontent, diftrefs and oppreffion, nearly in proportion to the number of items propofed to be taxed; and by the propofition I had the honor to fubmit, a tax of 25 cents a gallon on domestic distilled spirits; I believe that fix millions of dollars

would be raised, and this fum, with the additional import duty, tonnage, and other indirect taxes already agreed to by the Houfe, will raife more than the fum required by the government, and, if the amendment be agreed to, we may fafely difmifs all the other internal taxes propoled by the committee. To provide a fund that would enable us to get rid of the other items of internal taxa. tion, fo odious in their nature, and fo oppreffive in their operation, was the principal object of the amendment I had the honor to propofe to the 5th refolution. I do confider this amendment of importance, if viewed in its operation and effects on the fyftem of taxation propofed, or as it may have a bearing on the interefts, the eafe and happiness of the American people; and as I have reafon to believe, that my object in offering the amendment to the committee of the whole Houfe was not fully understood, I hope the Houfe will indulge me by going again into a committee of the whole, in order that the fubject, now better understood, may there be difcuffed.

Mr. Speaker, the committee of Ways and Means propose, by their report, to raise by internal, direct and indirect taxes, the -fum of 4,725,000 dollars as follows:

On licenfes to diftil spirits, the fum of
On retailing licenses

On auction licenfes

Excife on refined fugar

By carriage tax

By ftamp tax

And by land and other direct taxes

275,000

500,000

150,000

200,000

150,000

450,000

1,725,000

3,000,000

4,725,000

Total of internal taxes propofed The amendment I have propofed, of 25 cents a gallon on domeftic diftilled fpirits, may fafely be relied on to produce 5 or 6 millions of dollars. This, with the other taxes agreed to by the House, will give more money than is required to be raised by the report of the committee; and with this if the amendment be agreed to, we may difmifs all the other internal taxes propofed. The land tax, the ftamp tax, and all the other internal taxes may be difmiffed, and with them, the trouble, the diftrefs and the oppreffion that must neceffarily refult from their impofition and collection.

Mr. Speaker, I have estimated the product of the tax of 25 cents per gallon on domeftic diftilled fpirits, at 5 or 6 millions of dollars. The quantity diftilled the laft year appears, by returns made by marthals, pursuant to a refolution of Congrefs, to be a fmall fraction under 24 millions of dollars. From thofe data, gentlemen will be able to calculate for themfelves, and fatisfy themselves of the correctness of my eftimate. But I have referred to a document that I believe has not been laid before the Houfe,

the return of domeftic manufactures, made by the marshals, at an early period of the prefent feffion. This return was made to the secretary of the treasury, and by him transmitted to the committee of commerce and manufactures. It was examined by the members of that committee, and by feveral other members of this Houfe. I think I have ftated the quantity of these spirits truly; but if not, I hope fome gentleman, who has feen the document, will correct me. If we fhould be engaged in war, and I fee no poffible way to avoid it, unless we bring on ourselves, and on the nation, the utmoft degree of degradation and difgrace, then that fupply of foreign fpirits, which we have heretofore derived from the British Weft Indies, will be in a great measure cut off; and in that event, the home diftillation will probably be increased to 28 or 30 millions of gallons. But 24 millions will anfwer my purpose-24 millions, if the amendment be adopted, will yield 5 or 6 millions of dollars, and will enable us to difmifs all the other internal taxes propofed by the committee.

Mr. Speaker-we have taken a ftand that cannot be receded from, a ftand that will create expense; and having voted, with the majority, to raise armies, to equip the navy, and for a variety of other measures of a warlike afpect, I think it my duty not to refufe the means of payment. I will therefore not interfere with the fyftem of taxation proposed by the committee of Ways and Means, until I have firft found a fubftitute. I will not refufe any of the taxes they propofe, until I have selected fome more fuitable fubject of taxation, one that will make the fyftem operate more equally on the different fections of the country, and that will be lefs oppreffive in its operation. I do not like the fyftem that is propofed. I think it too diffufive; that it embraces too many objects; that it will require too many officers; and that it will be unneceffarily troublesome and oppreffive in its operation. I will amend it if I can; but if I cannot; if the amendment I have propofed fhall not obtain, much as I dislike it, I will take it as it is. I think it my duty, under exifting circumftances, to concur in raising the neceffary fupplies in the most eligible and least op. preffive form I can obtain them.

Mr. Speaker-the tax I propofe is faid to be odious, because it is an excife. True, it is odious; and all other internal taxes are odious, and nearly equally odious, whether they be in the nature of an excife, or in any other form. But will a tax of 25 cents per gallon on domeftic fpirits be more odious than an excife on refined fugar? Will it be more odious than a ftamp tax, or a land tax, or any other of the internal taxes, propofed by the committee? I think not. And by the adoption of this, we may difmifs all the others; by the adoption of this we may ftrike off five fixths of them, and about five fixths of all the trouble, vexation, diftrefs, and oppreffion they will produce. I beg gentlemen to look at this, and compare the operation of the fyftem, amend ed as I have proposed, with what it will be in its prefent form.

In its prefent form, a multitude of legal provifions must be confulted and obeyed. You must be watched and controlled in the management of your concerns, and many will be dunned, executed and perplexed by a fwarm of officers, that must be appointed to carry the fyftem into effect, and a vaft patronage will be created, that one day or another may be dangerous to the liberties of the country. If the amendment prevails, no trouble or vexation can accrue to the people generally, from the operation of the tax it propofes. The great mafs of the people will have nothing to do with it, only to pay a little more when they buy their liquor. They will have no laws to confult, no officers to watch or reftrain them in their bufiness, none to dun, vex or execute them. The diftiller will pay the entire of this tax in the firft inftance, but in that he is not injured; he will recover it back in the fales of his liquor; he adds the duty to the cost of the article, and fixes a general price to cover both coft and duty, and to yield the profit he proposes to himself by the bufinels; and the duty is made to yield him as good a profit, as he has on the coft of the article; and frequently he will be in cafh, by sales, for part of the duty before he is called on to pay it. It is true the diftillers will have fome trouble; they will have to confult the law and obey it, and they will be vifited by officers. This, Mr. Speaker, is much to be regretted; but if our rights are to be defended, the government muft raise money by internal taxes; none of them will give less trouble than this; and many of them much more. Each of the internal taxes pro. posed by the committee, will, I conceive, be productive of as much trouble and diftrefs as this; and will not altogether produce as much money as this.

Mr.Speaker, this tax is faid to be odious-but why is it odious? Will it operate more oppressively than any of the internal taxes propofed by the committee? It will not-and if, by the adoption of this, we get rid of many of thofe, its operation singly will be much lefs oppreffive, than their operation jointly. I care nothing for names. When a tax is to be paid, the people do not ask what it is called, they afk how much they have to pay; and how much trouble the laying and collection of it will impofe on them. That tax which is eafieft paid, that gives the leaft trouble and is the least oppressive, will be preferred by the people, and ought to be preferred by this Houfe. The hon. committee have admitted the excife principle of taxation: they have recommended an excife on refined fugar; and will they fay that an excife on fpirit is odious, and that an excise on refined fugar is innoxious and in unifon with the American feeling? Surely they will not. The fame odious ufe of power that may be neceffary to its execution in the one, will be neceffary in the other. This tax on refined fugar will produce but a trifle; on spirits it will produce all the money required; and if you adopt it on the Jatter, you may difmifs it from the former.