24 



lowest^ Now add five or ten or twenty cents per pound to odv prices, and wliat 

 other effect can follow than the entire dostraction of our export tobacco trade? 

 France purchases from us about one-half these amounts, and Bremen about 

 the same as France ; and these nations are our heaviest consumers. Our 

 tobacco is sent to nearly all nations just as we purchase from Cuba,yor es- 

 pecial jnerposts, hutnot for general consuinjiticn. That fact, of itself, condemns 

 the policy of the proposed excise. 



In conclusion, let us briefly look at the effect of this excise on home con- 

 sumption. 



The Connnissioner of Internal Revenue lays mucb stress on the fact that the 

 tobacco crop of 1863 was 170,000,000 pounds less than that of 1859. But, 

 will it be less in 1864? The monthly reports of this department show that in 

 the great tobacco-producing States of the west the following injuries were sus- 

 tained in consequence of the extraordinary frosts : By Kentucky, three-tenths ; 

 Ohio, two and one-third tenths ; Michigan, three and one-half tenths ; Indiana, 

 four- ten th s ; Illinois, four-tenths; Missouri, three-tenths; Wisconsin, three and 

 a half tenths ; and Iowa, four-tenths. With tlie inducements now before the 

 farmer, and an ordinary season, there is every reason to believe that the crop of 

 1864 will equal that of 1859. The esci^e, therefore, would scarcely begin to 

 operate before the crop would have regained all it lost by the rebellion. A tax 

 of twenty cents on the leaf and ten cents on the manufactured article would 

 advance the cost to the consumer at least thirty cents per pound. It is safe to 

 say that the decreased consumption in consequence M'ould be at least one-fourth. 

 If the home consumption is now 150,000,000 pounds, this would be 37,500,000 

 pounds. The account, then, would stand as follows : Entire crop, say 

 350,000,000 pounds ; loss of export trade, 200,000.000 pounds ; loss in domes- 

 tic consumption, 37,500,000 pounds. Hence, the tobacco-grower would find at 

 the end of the year two hundred and ten per cent, of his crop unsold. This 

 would be destruction to a product whose foreign 'trade is worth $20,000,000, 

 saving that amount of gold exports annually, that the government might re- 

 ceive a like sum one year in direct taxes, and after that a decreased amount so 

 uncertain that it cannot be guessed at. Such an excise would, then, be but an 

 illustration of the policy that killed the goose which laid the golden eggs. 



It has long been the settled policy of our government to allow the free ex- 

 portation of the products of the farm, and the rivalry all of them encounter 

 from foreign governments admonishes us of the wisdom of this policy. The 

 kingly prerogatives of cotton have not been respected, nor would the demo- 

 cratic claims of breadstuffs and provisions be regarded, if they assumed to tax 

 the consumption of the people of Great Britain. Whilst our cotton, tobacco, 

 rice, breadstuffs, and provisions, on account of tlieir better quality and cheap- 

 ness, can maintain, even-handed, their superiority in the markets of the world, 

 they yet cannot meet competition when clogged with even the lowest export 

 ta±. 



Has Congress power to lay the proposed taxi 

 Mr. Kent, in his 12th lecture says: 



"It was held that a general power was given to Congress to lay and collect 

 taxes of every kind or nature, without any restraint. They had plenary power 

 over every s) ecies of taxable property, except exports^ 



The provisions of the Constitution upon which this decision is based, are: 

 Section 8, article 1 : "The Congress shall have power to lay and collect 

 taxes, duties, imposts, and excises, &c., but all duties, imports and excises shall 

 be uniform throughout the United States." 



Section 9, article 1 : "No tax or duty shall be laid on articles exported from 

 any State." 



After the general power was given in section eight, limitations upon it were 



