canal entered the basins at its extremities, and so they would all have to pay tonnage duty.

Mr. MARTINDALE took the same ground, and denied that the revenue would be injured by extending the exemption to certain parts of Lake Erie and Lake Champlain.

The question was then taken on Mr. STORRS' amendment, and decided in the affirmative-ayes 87, noes 55.

The bill was then ordered to be engrossed for a third reading.

ILLINOIS CANAL.

The motion made yesterday, by Mr. BUCKNER, to reconsider the vote rejecting the bill for the Illinois canal, was taken up.

Mr. RANKIN renewed his opposition to the bill, and went into a calculation to shew that the lands granted would not only defray all the expenses of the canal, but would leave a balance in the Treasury of the state of Illinois, from half a million to a million of dollars.

Mr. COOK renewed his argument in favor of the bill, contended that the calculations made by the Chairman of the Committee on the Public Lands, so far from operating against the bill, was the strongest of all considerations in its favor, since they rested wholly on the value which would be given to the lands by the canal itself. patiated at considerable length on the advantages promised by the design.

He ex

Mr. M'COY denied that Illinois had any greater right to a portion of the public lands than Virginia, or any other state. The lands, when ceded, were to be set apart to pay the public debts, but Congress seemed to have forgotten that stipulation, and the lands, it seems, were to be given to any person who lived nearest to them. Would it not be best to sell the whole at once, and divide the proceeds?

The question on reconsidering was then put, and negatived.

HOUSE OF REPRESENTATIVES.-FEB. 19, 1825. An engrossed bill, entitled "An act concerning Canal vessels and boats," was read a third time.

[H. of R. & Sen.

ment, and insisted that Congress ought to retain its power to lay duties on Canal boats, whenever circumstances might render it proper. The question on recommitment was then put, and negatived.

Mr. WEBSTER opposed the amendment as too broad and extensive in its terms.

Mr. FOOT, of Connecticut, was in favor of the object of the bill, but opposed to the amendment as too narrow in some respects, and too wide in others.

Mr. MARTINDALE expressed his reluctant determination to vote against the bill, if the amendment were retained; when

Mr. WEBSTER, in order to give time for further reflection, and some interchange of views, which might lead to a modification of the bill, more acceptable to all parties, moved that it lie on the table. The notion prevailed, and the bill was ordered to lie on the table.

CLAIMS OF STATES FOR INTEREST, &c. On motion of Mr. WEBSTER, the House then went into committee of the whole, (Mr. CONDICT in the chair) on the bill for the relief of Elisha Snow, Jr. and the bill to authorize the payment of interest due to the state of Virginia.

The former of these bills was read by sections, and ordered, without debate, to a third reading on Monday. The latter bill gave rise to an animated and interesting debate, which occupied the House till past 4 o'clock. The debate turned chiefly on an amendment offered by Mr. SHARPE, of New York, which went to strike out the words "state of Virginia,” and to insert, in lieu thereof," the several states," making the provisions of the bill to extend, without distinction, to all the states who had borrowed money for the service of the United States, and paid interest thereon, and whose demand for the principal of their debt had been recognised and paid by the General Government. This amendment was advocated by Messrs. SHARPE, MERCER, P. P. BARBOUR, STEVENSON, KENT, NEALE, WOOD, WEBSTER, MARVIN, FULLER, MALLORY, COOK, and LIVINGSTON; and opposed by Messrs. WILLIAMS, of N. C. WHITTLESEY, McCOY, FLOYD, Foor, of Con. TUCKER, WARFIELD, WILDe, Bartlett, and CLAY.

The question was then put on Mr. SHARPE'S amendment, and decided in the negative, ayes 49, noes 96. The bill was then read throughout by sections and reported to the House.

Mr. SHARPE now renewed his motion to amend the bill, and required that, when the question was taken, it should be taken by yeas and nays, which were ordered accordingly.

Mr. MARTINDALE, of New York, moved that the bill be recommitted, for the purpose of being modified. In its present form, he contended, it granted none of that relief for which it had been introduced into the House, but, on the contrary, it imposed additional burthens. In support of this proposition, Mr. M. went, at considerable length, into a statement of facts, especially as related to the boats on the Champlain Canal. Mr. STORRS replied to his objections, and insistedjourned. that the clause of the bill from which it was apprehended that new burthens would be laid on the Canal boats, did not justify that apprehension.

Mr. WEBSTER believed both the bill and the amendment to be unnecessary, as the laws laying tonnage duties did not now apply to Canal boats, and could not be enforced with respect to them.

Mr. MALLARY was in favor of the bill, but opposed to the amendment, which he considered as defeating its object.

Mr. MARTINDATE insisted on the danger to which these boats would be exposed-of having tonnage duties exacted from their owners, unless some law was passed to prevent it. These duties had already, in some cases, been both demanded and paid.

But, before the question was taken, the House ad

IN SENATE-MONDAY, FEBRUARY 21, 1825. The PRESIDENT communicated a letter from J. I. McDonald, one of the Delegates from the Choctaw nation of Indians, with an address from that Delegation on the subject of the present condition of that tribe; which, on motion of Mr. WILLIAMS, was ordered to lie on the table.

Mr. TALBOT, from the Committee on the Judiciary, to whom was referred the bill "to extend the Judicial System of the United States, and to provide for three additional Circuit Courts," reported it with amendments.

On motion of Mr. SMITH, the Senate then proceeded, as in committee of the whole, (Mr. MILLS in the chair,) to the consideration of the bill from the other House, making an appropriation for certain fortifications in the United States for 1825."

66

Mr. McLANE preferred the bill to the amendment. He thought the apprehensions which had been expressed were without solid foundation. No duties could be demanded on a boat, till the boat passed from one district into another, and the bill provided for that case. Mr. NEWTON repeated and enforced the objections he had yesterday brought forward against the amend for the erection of a Fort at Beaufort, in North Carolina,

The amendments reported by the Committee on Finance were read.

The first proposed an appropriation of 30,000 dollars,

Fortifications.

and 50,000 dollars for Forts at Cape Fear, in the same state.

A long discussion ensued on this amendment, which was supported by Messrs. SMITH, MACON, BRANCH, COBB, HAYNE, and JOHNSTON, of Lou. on the ground of right and necessity, and the pledge that had been given that the system of fortification, heretofore adopted, should be continued impartially. The appropriation was opposed by Messrs. DICKERSON, LOWRIE, HOLMES, of Me. and CHANDLER, who argued that there was no necessity for fortifying the two points in question; that the Secretary of War was opposed to it, at present, as there was no Engineer at the disposal of the Government, for the purpose, at this time.

The following letter, from the Secretary of War, was read:

WAR DEPARTMENT, 14th Jan. 1825. SIR: I have the honor to lay before the Committee of Ways and Means a copy of a letter from the Hon. Mr. Webster, of Massachusetts, addressed to this Department, and of letters from General H. A. S. Dearborn, Collector of the port of Boston, Commodore Bainbridge, of the Navy, and from the President and Trustees of the Marine Society of Boston, which accompanied the communication of Mr. Webster, all representing, that George's Island and Nantasket Head, in the harbor of Boston, have been constantly diminishing, and are in great danger of being entirely swept away by the vio fence of the sea, if not immediately secured, and thus depriving that harbor of two important sites for fortifica

Mr. SMITH, in stating the reasons which induced the committee to propose this amendment, called for the reading of the following letter from the War Depart-tions, and of the natural protection which those positions

have heretofore afforded to the shipping which anchor "DEPARTMENT or WAR, Jan. 21, 1825. in Nantasket Roads. I also lay before the committee the SIR: I have the honor to acknowledge the receipt of report of the Chief Engineer on the subject, with the esyour note of yesterday's date, calling the attention of timates of the cost of the sea walls which have been prothe Department to the fortifications intended to be erect-jected for the security of the two positions, viz: For the ed at Beaufort and Wilmington, in North Carolina, and sea wall on George's Island, $25,083 64 cts. For that on requesting that estimates may be laid before Congress Nantasket Head, $27,888 91 cts.; amounting, for both, for the same, in such manner as may be deemed expe- to $52,972 56 cts.; and respectfully recommend that an appropriation to that amount may be made for the purpose of erecting the sea walls contemplated, for the preservation of the abovenamed sites.

E

FEB. 21, 1825.]

Fortifications.-Drawback Duties.

instructed in his duty, while he remains practically igno-
rant of those branches of the ordnance service, which, in
the actual operations of war, are daily necessary in con-
ducting the service of artillery. The mode proposed of
instructing them at Old Point Comfort, is the only one,
and will be both economical and effective.

I have the honor to be,
Your obedient servant,

Hon. J. HAMILTON, Jr.

J. C. CALHOUN.

Chairman of the Military Committee,

House of Representatives.

Estinate for carrying into operation the Artillery School for instruction, at Fortress Monroe, for the year

1825:

For the purchase of fifty artillery draft horses, at $100,

For materials for erecting stables and forage

house for fifty horses,

For hire of mechanics,

For building forges with bellows, and converting casemates into workshops,

For extra pay to soldiers employed as artifi

cers,

For wages of a master carriage-maker, and a master blacksmith, each $600,

Department of War, Feb. 1st, 1825.*

$5,000 00

1,500 00
1,000 00

$7,500 00

740 00

500 00

1,200 00

$9,940 00

The amendment was agreed to, and the bill was then ordered to be read a third time, as amended.

Un motion of Mr. SMITH, the Senate then proceeded, as in committee of the whole, to the consideration of the bill from the other House, making further appropriations for the military service of the United States for the year 1825.

The amendments proposed by the Committee of Finance, were unanimously agreed to.

Mr. COBB then moved to strike out the following clause in the bill:

"For payment of the amount of the annuity due to the Cherokee nation, under the treaty of the 24th of October, 1804," which was ratified during the last session of Congress, and for which no payment or appropriation has heretofore been made, $20,000.”

Mr. COBB stated his reasons at considerable length for making this motion, which were answered by Messrs. BENTON and SMITH; and the motion was finally negatived.

The bill, as amended, was then passed to a third reading.

The Senate then proceeded, as in committee of the whole, to consider the bills for the relief of two companies of mounted rangers cominanded by Captains Boyle and McGirth; which, after some discussion between Messrs. COBB and JACKSON, was passed, and sent to the House for concurrence.

The Senate then adjourned till 11 o'clock to-morrow.

[Sen. & H. of R.

the provisions of the bill; it had been drawn under the immediate eye of the Comptroller of the Treasury, and could not be expected to have the sanction of that Department, if it injured the present system of duties. It was bad policy to tax goods which only touched at this country on their way to another, and were not to be consumed here.

Mr. WRIGHT again spoke in opposition to the bill; if it went the whole length of the British ware-housing system, he would advocate it; but this would require an abolition of all credits at the custom-house. He renewed his motion to lay the bill on the table.

Mr. LIVINGSTON, of Louisiana, said that the bill was one which deserved serious consideration, because it

made an important change in the fiscal operations on our commerce; that he had at first doubted whether sufficient precaution had been taken in drafting it, but that not seeing any very important omission, and having been informed that its details had been considered by the Treasury Department, and had received the sanction of the Committee of Ways and Means, he was prepared to give it his support.

As the law on the subject now stands, all duties on importation must be paid in cash, or secured to be paid by instalments at different periods, from three to twelve months; and a deposite of goods may be made instead of personal security, to insure the payments. Teas, and some other articles, form a modified exception to these regulations, which will be presently noticed. But as all duties are considered as taxes on consumption only, the law had justly, as well as wisely, provided, that if within a reasonable time merchandise on which a duty had been paid, should be re-exported, the duties, with a certain deduction, should be refunded. This was just, because otherwise the tax, instead of falling on the consumer, would rest on the importing merchant, who, on re-exporting the merchandise, must do it with the load of the duty he had paid. It was wise, because a contrary conduct would banish all the transit trade from our harbors, confine our importations strictly to the amount of our consumption, and force our merchants, whenever they carried the produce of one foreign nation, to the ports of another, to go abroad to make up their cargoes. The drawback system had been found in practice to realize all the advantages which the theory of its establishment seemed to warrant : it had greatly increased our carrying trade, given scope to the enter prise of our merchants, enabled them, by assorting their cargoes at home, to compete, in foreign markets, with the merchants of the countries from which each of the articles composing such cargoes were brought, and if freed from some inconveniencies and unjust burthens, would enrich them and their country, in a degree com mensurate with the greater facilities and freedom that would then be offered. The present bill was intended to effect this by providing,

1st, That duties on all goods imported may, at the option of the importer, either be paid, or secured in the manner now directed by law, or that they may be warehoused at the expense of the party, and that the duties need not, in that case, be paid until the expiration of two years, unless they are sooner sold for consumption. And that at any time within the two years, they may be re-exported, without any other payment to the Government than the half of one per cent. to pay the expense of entries and other documents.

The advantages to the importing merchant by this arrangement, are principally, that, being exonerated from the necessity of finding security for the duties before he knows whether he shall find a market for his goods, he will be enabled to extend his importations, and to keep always a large quantity of the article in which he deals on hand, ready to meet the demand for domestic consumption, or for foreign trade. To the exporting mer Mr. M'KIM, of Md. who spoke in reply, and explained | chant, (whether the same individual or not,) it will give

Mr. WRIGHT, of Ohio, opposed the bill, as calculated to alter materially the system of imposts now existing, and he moved it lay on the table, but withdrew it for a moment to accommodate

H. of R.]

On Drawback Duties.

[FEB. 21, 1825.

The amount of the two and a half per cent. retained on the debentures for the last year, amounted to 126,359 dollars. This was a tax laid on the export trade, and if not in terms, was in effect a contravention of the constitutional provision that prevented such tax, and it operated to that amount to the benefit of foreigners who car ried the foreign article to market without entering the United States. Mr. LIVINGSTON regretted that this mea. sure had been delayed to so late a day, because gentle men who might otherwise have been in favor of it, had not time to examine whether sufficient precautions were taken in the introduction of a new system, to avoid frauds on the revenue; for his part, however, since he had been assured that it had passed the scrutiny of the able and attentive committee of this House, within whose department it came, he should give it his support.

the great advantage of finding, in consequence of this to deprive the importing merchant of the supply of the increased importation, the means in a moment of assort- home market; and, without questioning the wisdom of ing his cargoes for any market; an advantage which, in this preference shown to our domestic trade, it may at the present state of our commerce, and its highly flatter- least be considered as giving the merchant some title to ing prospects of extension, ought not to be overlooked. indemnity, by enabling him to enter the foreign market The markets of Mexico, and of the whole Southern to advantage. At present you oblige him to find secu Continent, are now open to our commercial enterprise.rity for the payment of duties on goods not intended for That-commerce, more than any other, requires assorted consumption; when he exports them, you tax him 24 cargoes. More than any other, it requires promptitude per cent. on the amount of their duties; you deprive him in collecting, and despatch in forwarding them to their of the facility of making up an assorted cargo, and destination, to avail ourselves of those variations of glut thereby nearly destroy the advantages he could derive and demand to which, more than any other, those mar- from his vicinity to the best market in the world for car. kets are subject, excepting only, perhaps, those of the goes of that description, and you take away from the West Indies, to which this reasoning will equally apply. country the great profits to be derived from the deposite; This arrangement will aid, in an incalculable degree, and in the same degree that you injure your own trade the advantages derived from our local position for carry-in these respects, you favor that of foreigners. ing on that commerce. Their vicinity gives us an immediate knowledge of their wants, and cargoes of the most complex kind are formed, and in the market, before the European merchant can have heard of the demand. It is true, that our present drawback system operate, in some degree, this effect: the advantages of a return of the great proportion of duties, is one that does not seem to have been appreciated in other countries, and particularly in the commercial countries of Great Britain and Holland, in the degree its importance merits. In England, the allowance of drawback on reexportation, was never general. In the cases where it is allowed, more than one half of the duty sometimes is retained, and in some cases more. For instance, in Great Britain, on steel there is a duty of 50 per cent. and no drawback; on brandy a duty of 178. sterling, and no drawback; on some species of linens the duty is 6s. 4d. Mr. TRIMBLE, of Kentucky, opposed the passage of per piece, and the drawback only 28. 8d. In the king- the bill, especially on the ground of the loss to the 2} dom of the Netherlands, the transit and export duty are per cent. fund. The object of this 24 per cent. as resometimes 50 per cent. higher than that paid on the tained by the Government, was to pay the expense of import; but, although this varies with regard to many ar- the systein; this fell equally on the importer and con ticles, on none is the part retained so little as that di-sumer; but the expense of the warehouse system, under rected by our law. But although these regulations yet this bill, doubled the burden on the importer, and whol remain in Great Britain, they now operate no hardship, ly relieved the exporter. But the principal objection because, becoming sensible of the error of her restric- was, that the importer only gave his own bond, and held tive system, of which this formed a part, in the year one of two keys of a private warehouse, while the collec 1803, she adopted the plan of permitting foreign goods tor held the other he might easily withdraw the goods to be warehoused and re-exported free from duty. This and go off himself, and leave the Government in the was enlarged in the year 1823, and extends now to all lurch. The bill went chiefly to benefit foreigners-for foreign goods, except tea, and other Chinese goods, they constituted a large majority of the importing mer gun-powder, and other munitions of war, linens, beef, chants in our sea ports. He believed the country lost a pork, fish, and some other articles, which were except large amount, annually, as it was—and this would go to ed, to favor, if not the interest, at least the prejudices of increase the amount. some classes of traders and manufacturers. So that un

Mr. CAMBRELENG replied-contended that 24 per der the present regulations there, every merchant who cent. was much more than sufficient for the expense of intends to re-export, will warehouse, instead of entering goods in transitu, and operated as an impolitic tax on the his goods. This bill proposes the same system, and it transit trade. He denied the danger of frauds-and his is not presumed that it will be attended with any pecu- only objection to the bill was, that it did not go far liar disadvantages; indeed, it is now, with respect to cer- enough. He stated the objects of the bill, and contendtain articles, in operation,and has been so since the com-ed for their expediency. mencement of our fiscal system. Teas and wines may Mr. BUCHANAN, of Pennsylvania, professed himself now be warehoused, and no duty need be paid on them in favor of the bill, as having a favorable influence on the unless they are entered for consumption; and if any trade of this country, especially to South America-it frauds have been practised in consequence of this indul-enabled the merchant to go into that market two per gence, it cannot have been to a great amount, or this extension of the system would not have received the approbation of the Treasury. On the contrary, under the debenture law, Mr. L. said he had understood that frauds had been practised to a great amount, particularly in the article of brandies. The casks which contained this liquor on its importation, being re-exported filled with Mr. SHARPE, of N. Y. stated the present course of domestic spirits of a very inferior quality. It is said, commerce, and insisted on the advantages of the billthat in one of our great cities alone, thirty or forty emp-but gave way at the request of ty casks of this description, accompanied by the certi- Mr. P. P. BARBOUR, who moved, on account of the ficates of importation, are daily sold to the distillers; if lateness of the hour, and with a view to enter on the apthis quantity should be exported, and the drawback ob-pointment of Printer to the House, that the bill be, for tained, the loss to the revenue could not be less than the present, laid on the table, and the unfinished busi 300,000 dollars per annum. This could not take place ness of Saturday be postponed, to proceed to the ballot if they were warehoused. Besides, sir, said Mr. L. the of that appointment. policy of our Government has lately been by high duties

cent. cheaper than at present, and argued the policy of securing that trade as speedily as possible. He replied to Mr. TRIMBLE, and concluded that no law, proper in itself, should be objected to, because it happened to benefit foreigners. He thought the bill would have a beneficial effect on the manufacturing interest.

The motion prevailed.

Massachusetts Claims-Purchase of Paintings.

The Senate, as in committee of the whole, resumed the consideration of the bill authorizing the purchase of the Equestrian Portrait of Washington, by Rembrandt Peale.

On the question shall this bill be engrossed for a third
reading? it was decided by yeas and nays, as follows: Mr. HOLMES, of Maine, moved to amend the bill by
YEAS.-Messrs. Barton, Benton, Bouligny, Brown, filling the blank with $4,500; which was decided in the
Eaton, Elliott, Hayne, Holmes, of Miss. Jackson, John-affirmative-ayes 20, noes 14.

son, of Ky. Johnston, of Lou. Kelly, King, of Alabama, Mr. NOBI.E then rose and said he would ask the SeM'Lean, Mills, Noble, Ruggles, Taylor, Thomas, Wil-nate to pardon him for a few moments, and he would liams-20.

The following message was received from the Presi- however, for members of Congress to examine, and those dent of the United States: