SYNOPSIS

OF

TREASURY INSTRUCTIONS.

CHAPTER I.

OUTLINE OF THE REVENUE, OR FINANCIAL SYSTEM IN GENERAL.

SECTION 1.-Construction of the Revenue clause of the Constitution, and of the Revenue laws; and definitions of Country, America, &c., in a commercial and political sense.

SECTION 2.-Improvement of the Revenue System, sought by repeated efforts, from 1789 to 1838, with other important tributaries thereto. SECTION 3.-The supervision of the business of the Customs, as the principal branch of the Revenue System, delegated, in chief, to the Comptroller of the Treasury; with certain reservations to the Secretary of the Treasury, and other exceptions incidentally devolving on other officers; also sundry notices respecting the collection, safe-keeping, and disbursement of the Revenue, and other financial operations connected therewith.

SECTION I.

Construction of the Revenue clause of the Constitution and of the Revenue laws; and definitions of Country, America, &c., in a commercial and political sense.

1. The Secretary of the Treasury states, in a circular to Collectors of the Customs, the bearing to be had on the Collection law, by the adoption of the federal Constitution by the State of North Carolina, "in repealing the 39th section of that law, as to North Carolina;" and to sustain this opinion, he refers to that clause of the Constitution which says: "All duties, imposts, and excises shall be uniform throughout the United States:" Secretary's circular 27th January, 1790. Vol. 1, page 43.

2. According to the aforesaid construction of the 27th January, 1790, the Secretary of the Treasury decides, that the Ships and Vessels of North Carolina, and of Rhode Island, were, by their adoption of the Constitution, (which virtually repealed the 39th section of the Collection law as to both,) entitled to have their alien tonnage, paid anterior thereto, refunded: (1) S's cir. 25th June, 1792; V. 1, p. 113.

Construction of the Revenue clause of the

Constitution, in repealing, revenue laws

in certain cases.

[Same subject.]

(1.) It must be manifest on the slightest reflection, that this retroactive decision was altogether gratuitous; and that, to give it any verisimilitude of principle, it should have been general instead of being confined to the isolated matter of refunding to North Carolina and Rhode Island the tonnage duties which their merchant vessels had paid anterior to their adoption of the Constitution. To have borne the

When does a law

3. The right of the Secretary of the Treasury to settle the construction of the Revenue laws, in relation to all cases of doubt, is minutely set forth by him, to counteract the contrary impression entertained by certain Collectors: S's cir. 20th July, 1792; V. 1, p. 114.

4. The construction of the Revenue laws, in cases of ambiguity, is not so desirable from the Treasury Department, as are "explanatory acts" from the Legislature: Comptroller's cir. 22d March, 1793; V. 1, p. 43.

5. "No usage of a Collector can prevail against the obvious terms of the law: it may be his misfortune, or the misfortune of the public, if he misinterprets the law, but he cannot alter it;" opinion of Judge Story: C's cir. 27th September, 1819; V. 2, p. 78.

6. The operation of a law, in general, when no express provision is made therefor, should commence to operate? be construed to commence on the day of its passage: C's cir. 31st Aug., 1813; V. 1, p. 277.

Cases of partial repeal of its operation—

-contrasted.

Definition of Coun

of the Treasury.

7. The repeal of the legal charges on the issuing of Passports and Clearances, does not exonerate masters of vessels bound to foreign ports, from the obligation of taking out Passports and Clearances: C's cir. 25th March, 1831, V. 3, p. 122.

8. The repeal of tonnage duties by act of 31st May, 1831, (as hereby decided,) does (2) exonerate the proper officer from making admeasurement of foreign vessels on their entry into ports of the United States: C's cir. 16th March, 1833; V. 3, p. 371.

9. The term "Country," as used in the 1st section of the Navigation act of 1st March, try by the Secretary 1817, embraces all the possessions of a State or Nation, however widely separated, which are subject to the same supreme executive and legislative authority: S's cir. 29th September, 1817; V. 2, p. 78.

stamp of uniformity, as a principle of justice to all the parties concerned, it should have required those States, on the other hand, to refund to the United States the duties they had levied on their foreign importations during the same period, deducting the expenses of collection, &c.; which, if it had been practicable, and within the sphere of the Secretary's action, would have involved those two States in a debt of sufficient magnitude to have been peremptorily resisted by them. Moreover, they, and the United States, should have been placed in the same position in all other respects as if N. C. and R. I. had adopted the Constitution coevally with its going into operation in the rest of the Union, which would have been utterly impracticable. The provision of the clause of the Constitution above referred to, to sustain the above decision, could only have required a due observance in regard to N. C. and R. I., from the date of their adoption of that instrument; and any partial retroaction in that regard was well calculated to involve consequences that could not easily be remedied. But it will not be inferred that the father of the Revenue System of the United States was insensible of the just exceptions that might be taken to this decision. In this case it cannot be presumed that there was in fact any error of judgment in the gigantic mind that awarded the gratuity. It was but a small matter to a magnanimous heart, to concede to the importunities of the claimants this penny boon, in consideration of that great political consummation, the unanimous adoption of the federal Constitution, with however ill grace its tardy recognition was made by those two States. To deal rigidly with them was contrary to the spirit of that era of good feeling; otherwise the United States might then have required Rhode Island to adopt at once a republican form of State government, and have thus, fortunately, been the means of anticipating that violent party struggle by which she at last spontaneously set aside her Colonial charter of the King of England.

(2.) Is not this in conflict with another provision of law, which requires a quarterly report of the entry of foreign tonnage? and likewise with the parallel case, No. 7, which decision seems based on a principle that should govern both cases? It will be perceived, in the course of these pages, that the like instances of contradictory instructions and decisions do but two frequently occur, to entitle those official opinions and regulations to be considered as remarkable exceptions to that general proposition-as old as the moral world-which denies infallibility to the human judgment. But, upon the whole, the good keeping that generally prevails in these adjudications, emanating from various minds through a long series of years, is entitled to lay far greater claims to our admiration, than are their discrepancies entitled to excite our surprise.

10. The term "Country," (in reference to a different subject, but equally commercial with that of the aforesaid act of 1st March, 1817,) is differently defined from the foregoing of 29th September, 1817, by restricting it to geographical limits-making England, Ireland, and Scotland different countries: C's cir. 14th April, 1819; V. 2, p. 17.

11. The definition of "Country," by the Secretary's circular of 29th September, 1817, is re-affirmed by the Secretary, in relation to the execution of the same act of 1st March, 1817: S's cir. 6th July, 1842; V. 3, p. 279.

12. A definition is given to the term "America," in its commercial relation to foreign places lying north and south of the Equator: C's cir. 23d January, 1818; V. 1, p. 358.

Definition by the

Comptroller different.

Secretary's definition re-affirmed.

America defined.

SECTION 2.

Improvement of the Revenue system, sought by repeated efforts, from 1789 to 1838, with other important tributaries thereto.

13. The Secretary of the Treasury, with a view to the improvement of the " Revenue System of the United States, just put in operation," calls on Collectors and others for information on sundry special points, and in general: S's cir. 2d October, 1789; V. 1, p. 5.

14. The Secretary asks for information respecting the "navigation of the several States and of foreign nations;" and propounds a number of queries on the subject, which he deems of great importance to the Government, and are eventually conducive to the design of improving her revenue system: S's cir. 15th October, 1789; V. 1, pp. 15 to 18.

15. The Secretary requests Collectors to furnish him with the Revenue law of their respective States, for his information, as soon as practicable: S's cır. 25th November, 1789; V. 1, p. 26.

Call for information

on Revenue system in general;

on the navigation of the several States and sons of experience.

foreign nations, as les

Revenue laws of the several States desired.

Scheme of customhouse forms and doc

16. The Secretary calls for copies of reports, entries, oaths, bonds, certificates, and other custom-house documents that Collectors may have adopted, and any others which may ments. have been used in the custom-houses under the State administrations, and during the Provinces or Commonwealths; and any foreign papers of the same kind in their possession, in order, by aid of those precedents, to be enabled to digest a uniform plan of custom-house documents, &c.: S's cir. 30th September, 1790; V. 1, p. 62.

17. A similar call to the foregoing is made by the Secretary, for any documents that may come into the possession of Collectors from time to time, which have relation to commerce, navigation, fisheries, manufactures, or the products of the several States, in the time of the Provinces or the Commonwealths: S's cir. 10th March, 1791; V. 1, pp. 65, 66.

On commerce, navigation, manufactures, and products, information is desired.

18. To render the Revenue system as perfect as possible, Collectors are requested to make known to the Secretary of the Treasury all attempts to evade the provisions of the existing laws: S's cir. 7th May, 1817; V. 2, p. 77.

19. In pursuance of a resolution of Congress, Collectors are requested to communicate, for their use, any information tending to remedy any discovered defects in the existing Revenue Laws. S's cir. 11th November, 1817; V. 2, p. 81.

20. In pursuance of a resolution of Congress, Collectors are requested to furnish for their use a list of such offices of the customs, with the names of the officers, their salaries, and emoluments, which it may be proper to suppress or discharge, in consequence of their unproductiveness, &c.: S's cir. 7th May, 1818; V. 2, p. 82.

21. The "Revenue being exclusively derived from duties and the sales of public lands, i , it is extremely important to render both systems as complete as possible." In regard to the former, the most important change indicated is, that of substituting "specific" for "ad valorem" duties as far as practicable; and to this end the suggestions of Collectors are invited, to be embodied in a Report of the Secretary of the Treasury to Congress: S's cir. 25th May, 1818; V. 2, p. 85.

22. The supplementary Collection law of the 20th April, 1818, being entirely experimental, Collectors are requested to furnish a quarterly statement to the Secretary of its operations, to enable him to judge of its efficacy, and its defects: S's cir. 29th May, 1818; V. 2, p. 89.

23. For the convenience of distant shippers, the Collectors are authorized to cause to be entered and appraised all merchandize paying ad valorem duties under the aforesaid supplementary act of 20th April, 1818, which may arrive unaccompanied with invoices before the 1st of November next, upon the owner or consignee making oath that no invoice has been received, &c.: S's cir. 22d June, 1818; V. 2, p. 90.

24. To ascertain the effects of the aforesaid act of 20th April, 1818, upon the collection of the Revenue, Collectors are required to render a "quarterly account," as per form prescribed, "of the results of appraisements of merchandise" made in pursuance of said act: S's cir. 24th July, 1820; V. 2, p. 117.

25. By the act of the 2d March, 1819, important changes having been made in the Coasting Trade, and sufficient time having elapsed to ascertain whether its effects have been beneficial or injurious to the public interests, Collectors are requested to state their experience of the same, and particularly whether it has increased or diminished smuggling, and other violations of the Revenue Laws: S's cir. 7th September, 1821; V. 2, p. 128.

Improvement of the 26. Information is desired from Collectors, by direction of the Secretary of the TreaRevenue System further desired. sury, in order to meet an inquiry anticipated from Congress, with a view to the amendment of the Revenue System, &c.: C's cir. 26th July, 1826; V. 2, p. 443.

nue laws transmitted.

27. Sundry copies of a "Digest of the Revenue Laws (by Mr. Gordon, of Philadelphia,) Digest of the Reveare transmitted for the use of officers of the Customs in the several collection Districts: S's cir. 24th and 31st March, 1831; V. 2, pp. 258, 259.

28. With a view to the improvement of the "Revenue System," Collectors and merchants are invited by the Secretary of the Treasury to point out any defects they may have discovered, and to suggest such improvements as may occur to them: S's cir. 31st July, 1832; V. 2, p. 289.

29. The Secretary of the Treasury makes inquiries of American Consuls abroad respecting the practical systems in operation in the several countries in which they reside, of collecting, keeping, and disbursing the public money, viz: 1. In what kind of funds is the Revenue collected? 2. By whom, and how, are they kept, till expended or remitted, and at whose risk? 3. By whom paid out, in what kind, and under whose direction? 4. How are they transmitted to the seat of Government, and at whose risk? 5. Can they be legally loaned out, or used by officers who either collect, keep, or disburse them? 6. And what guards or checks are there against the misuse of public funds? The Secretary also asks for Books and Pamphlets on these subjects, with a speedy answer to his inquiries: S's cir. 7th August, 1838; V. 3, p. 175.

30. The Secretary of the Treasury, in pursuance of a Resolution of Congress, calls on Collectors for a Report of all the information they can collect in relation to the MANUFACTURING ESTABLISHMENTS of the United States, and whatever suggestions that are calculated to FOSTER and PROTECT them: S's cir. 28th June, 1809; V. 1, p. 303.

is

31. The co-operation of Collectors, Merchants, Consuls abroad, and other persons, solicited, in promoting a "scheme of the President" for introducing useful and ornamental trees, plants, seeds, and a variety of other objects, with suitable information thereon, to be addressed to the Secretary of the Treasury, in unison with a similar instruction from the Secretary of the Navy to commanders of public vessels: S's cir. 6th September, 1827; V. 2, p. 190.

32. The aforesaid request of the 6th September is repeated, with great earnestness: S's cir. 15th November, 1827; V. 2, p. 194.

Information on the manufacture of salt

33. For the information of Congress, pursuant to a resolution of the House of Representatives, the Secretary of the Treasury requests Collectors, and, through them, owners of salt desired. works, to make a statement of the number and nature of those establishments, their location, the capital invested in each, the number of persons engaged in the manufacture, the kind and prices of salt manufactured at the different works, &c.: S's cir. 14th September, 1829; V. 2, p. 226.

Also, on the condi

manufacture.

34. In pursuance of a resolution of the House of Representatives, the Secretary of the Treasury requests Collectors, Marshals, and others, to state the quantity, quality, and kinds tion of iron and steel of iron and steel, in their various forms, which have been manufactured in the United States, annually, for three years prior to the 1st September, 1831: S's cir. 15th April, 1831; V. 2, p. 262.