STATEMENT showing the dividend of each state, (according to its federal population), in the proceeds of the public lands, after deducting therefrom fifteen per cent. as an additional dividend for the states in which the public land is situated. [Estimated proceeds of lands, $3,000,000; deduct fifteen per cent. $450,000, and $2,500,000 remains to be divided among all the states according to their population.]

ON DUTIES AND IMPORTS.

February 12, 1833.

Mr. Clay rose and addressed the senate to the following effect

I yesterday, sir, gave notice that I should ask leave to introduce a bill to modify the various acts imposing duties on imports. I, at the same time, added, that I should, with the permission of the senate, offer an explanation of the principle on which that bill is founded. I owe, sir, an apology to the senate for this course of action, because, although strictly parliamentary, it is, nevertheless, out of the usual practice of this body; but it is a course which I trust that the senate will deem to be justified by the interesting nature of the subject. I rise, sir, on this occasion, actuated by no motives of a private nature, by no personal feelings, and for no personal objects; but exclusively in obedience to a sense of the duty which I owe to my country. I trust, therefore, that no one will anticipate on my part any ambitious display of such humble powers as I may possess. It is sincerely my purpose to present a plain, unadorned, and naked statement of facts connected with the measure which I shall have the honor to propose, and with the condition of the country. When I survey, sir, the whole face of our country, I behold all around me evidences of the most gratifying prosperity, a prospect which would seem to be without a cloud upon it, were it not that through all parts of the country there exist great dissensions and unhappy distinctions, which, if they can possibly be relieved and reconciled by any broad scheme of legislation adapted to all interests, and regarding the feelings of all sections, ought to be quieted; and leading to which object any measure ought to be well received.

In presenting the modification of the tariff laws, which I am now about to submit, I have two great objects in view. My first object looks to the tariff. I am compelled to express the opinion, formed after the most deliberate reflection, and on full survey of the whole country, that whether rightfully or wrongfully, the tariff stands in imminent danger. If it should even be preserved during this session, it must fall at the next session. By what circumstances, and through what causes, has arisen the necessity for this change in the policy of our country, I will not pretend now to elucidate. Others there are who may differ from the impressions which my mind has received upon this point. Owing, however, to a variety of concurrent causes, the tariff, as it now exists, is in imminent danger, and if the system can be preserved beyond the next session, it must be by some means not now within the reach of human sagacity. The fall of that policy, sir, would be productive of consequences calamitous indeed. When I look to the variety of interests which are involved, to the num

ber of individuals interested, the amount of capital invested, the value of the buildings erected, and the whole arrangement of the business for the prosecution of the various branches of the manufacturing art which have sprung up under the fostering care of this government, I cannot contemplate any evil equal to the sudden overthrow of all those interests. History can produce no parallel to the extent of the mischief which would be produced by such a disaster. The repeal of the edict of Nantes itself was nothing in comparison with it. That condemned to exile and brought to ruin a great number of persons. The most respectable portion of the population of France was condemned to exile and ruin by that measure. But in my opinion, sir, the sudder repeal of the tariff policy would bring ruin and destruction on the whole people of this country. There is no evil, in my opinion, equal to the consequences which would result from such a catastrophe.

What, sir, are the complaints which unhappily divide the people of this great country. On the one hand, it is said by those who are opposed to the tariff, that it unjustly taxes a portion of the people, and paralyzes their industry; that it is to be a perpetual operation; that there is to be no end to the system; which, right or wrong, is to be urged to their inevitable ruin. And what is the just complaint, on the other hand, of those who support the tariff? It is, that the policy of the government is vacillating and uncertain, and that there is no stability in our legislation. Before one set of books are fairly opened, it becomes necessary to close them, and to open a new set. Before a law can be tested by experiment, another is passed. Before the present law has gone into operation-before it is yet nine months old-passed, as it was, under circumstances of extraordinary deliberation, the fruit of nine months labor-before we know any thing of its experimental effects, and even before it commences its operations, we are required to repeal it. On one side we are urged to repeal a system which is fraught with ruin; on the other side, the check now imposed on enterprize, and the state of alarm in which the public mind has been thrown, renders all prudent men desirous, looking ahead a little way, to adopt a state of things, on the stability of which they may have reason to count. Such is the state of feeling on the one side and on the other. I am anxious to find out some principle of mutual accommodation, to satisfy, as far as practicable, both parties to increase the stability of our legislation; and at some distant day-but not too distant, when we take into view the magnitude of the interests which are involved-to bring down the rate of duties to that revenue standard for which our opponents have so long contended. The basis on which I wish to found this modification, is one of time; and the several parts of the bill to which I am about to call the attention of the Senate, are founded on this basis. I propose to give protection to our manufactured articles, adequate protection, for a length of time,

which, compared with the length of human life, is very long, but which is short, in proportion to the legitimate discretion of every wise and parental system of government-securing the stability of legislation, and allowing time for a gradual reduction, on one side; and on the other, proposing to reduce the duties to that revenue standard for which the opponents of the system have so long contended. I will now proceed to lay the provisions of this bill before the Senate, with a view to draw their attention to the true character of the bill.

Mr. C. then proceeded to read the first section of the bill, in the words in which it will be found below. According to this section, he said it would be perceived that it was proposed to come down to the revenue standard at the end of little more than nine years and a half, giving a protection to our own manufactures which he hoped would be adequate, during the intermediate time. Mr. C. recapitulated the provisions of the sections, and showed by various illustrations how they would operate.

Mr. C. then proceeded to read and comment upon the second section of the bill, as recited below. It would be recollected, he said, that at the last session of Congress, with a view to make a concession to the southern section of the country, low priced woollens, those supposed to enter into the consumption of slaves and the poorer classes of persons, were taken out of the general class of duties on woollens, and the duty on them reduced to five per cent. It would be also recollected that at that time the gentlemen from the south had said that this concession was of no consequence, and that they did not care for it, and he believed that they did not now consider it of any greater importance. As, therefore, it had failed of the purpose for which it was taken out of the common class, he thought it ought to be brought back again, and placed by the side of the other descriptions of woollens, and made subject to the same reduction of duty as proposed by this section.

Having next read through the third section of the hill, Mr. C. said that, after the expiration of a term of years, this section laid down a rule by which the duties were to be reduced to the revenue standard, which had been so long and so earnestly contended for. Until otherwise directed, and in default of provision being made for the wants of the government in 1842, a rule was thus provided for the rate of duties thereafter, Congress being in the mean time authorized to adopt any other rule which the exigencies of the country, or its financial condition, might require. That is to say, if, instead of the duty of twenty per cent. proposed, fifteen or seventeen per cent. of duty was sufficient, or twenty-five per cent. should be found necessary, to produce a revenue to defray the expenses of an economical administration of the government, there was nothing to prevent either of those rates, or any other, from being fixed upon; whilst the rate of twenty per cent. was introduced to guard against

any failure on the part of Congress to make the requisite provision in due season.

This section of the bill, Mr. C. said, contained also another clause, suggested by that spirit of harmony and conciliation which he prayed might preside over the councils of the Union at this trying moment. It provided (what those persons who are engaged in manufactures have so long anxiously required for their security) that duties shall be paid in ready money-and we shall thus get rid of the whole of that credit system, into which an inroad was made, in regard to woollens, by the act of the last session. This section further contained a proviso that nothing in any part of this act should be construed to interfere with the freest exercise of the power of Congress to lay any amount of duties, in the event of war breaking out between this country and any foreign power.

Mr. C. having then read the fourth section of the bill, said that one of the considerations strongly urged for a reduction of the tariff at this time was, that the government was likely to be placed in a dilemma by having an overflowing revenue; and this apprehension was the ground of an attempt totally to change the protective policy of the country. The section which he had read, Mr. C. said, was an effort to guard against this evil, by relieving altogether from duty a portion of the articles of import now subject to it. Some of these, he said, would, under the present rate of duty upon them, produce a considerable revenue; the article of silks alone would probably yield half a million of dollars per annum. If it were possible to pacify present dissensions, and let things take their course, he believed that no difficulty need be apprehended. If, said he, the bill which this body passed at the last session of Congress, and has again passed at this session, shall pass the other House, and become a law, and the gradual reduction of duties should take place which is contemplated by the first section of this bill, we shall have settled two (if not three) of the great questions which have agitated this country, that of the tariff, of the public lands, and, I will add, of internal improvement also. For, if there should still be a surplus revenue, that surplus might be applied, until the year 1842, to the completion of the works of internal improvement already commenced; and, after 1842, a reliance for all funds for purposes of internal improvement should be placed upon the operation of the land bill, to which he had already referred.

It was not his object, Mr. C. said, in referring to that measure in connexion with that which he was about to propose, to consider them as united in their fate, being desirous, partial as he might be to both, that each should stand or fall upon its own intrinsic merits. If this section of the bill, adding to the number of free articles, should become law, along with the reduction of duties proposed by the first section of the bill, it was by no means sure that we should have any surplus revenue at all. He had been astonished indeed at the process of reasoning by which