Continuing his lucid and remarkable report with careful details of the
methods to be adopted, Gallatin closed with an urgent recommendation
that the crisis should at once be met by the adoption of efficient
measures to provide, with certainty, means commensurate with the
expense, and by preserving unimpaired, instead of abusing, that credit
on which the public resources eminently depend, to enable the United
States to persevere in the contest until an honorable peace should be
obtained. Thus he held the bitter cup to the lips of the Republican
Congress, which, however, was not yet to drain its full measure. War was
declared June 18, 1812. On July 1, 1812, an act was passed imposing an
additional duty of one hundred per cent. on all importations, an
additional ten per cent. on goods brought in foreign vessels, and also a
duty of $1.50 per ton on all foreign vessels. The duty was to remain
until the expiration of one year after peace should be made with Great
Britain. On December 5, 1812, Mr. Gallatin sent in his last report. The
balance in the treasury was $3,947,818. His estimate for the service of
the year 1813 was a war budget. Resources, $12,000,000; expenditures,
$31,926,000; promising a deficiency of $19,925,000. For this and other
contingencies Mr. Gallatin asked for a loan of twenty millions. The
authority was granted, but the recommendations of direct and indirect
taxes were disregarded. Here Mr. Gallatin's direct connection with the
customs system closed.
The value of foreign importations during Madison's first term was
$275,230,000, and the customs derived from them thirty-eight millions of
dollars.
* * * * *
Public-domain text, read in full here on John Shaqi.
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