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cluded between the United States and any Indian seven the additional section which will be read I am advised by the assessor of cigars in the
tribe, by which the title of such tribe to their lands
by the Clerk.

district which I represent that if such an sball be divested, the saineshall be conveyed directly

The Clerk read as follows:

amendment as I pro rose be adopted there will to the United States, and shall thenceforward besubject to the authority of Congress in the same manner Sec. –. And be it further enacted, That upon all be no more opportunity for fraud than the manuas all other public lands.

interest arising from bonds of the United States there facturer will have under the bill as it now stands. Mr. TAFFE. I object to the consideration shall be levied, collected, and paid a duty of ten per

Common cigars sold, before the war, at from cent. on the amount of sucb interest, and the Treasof the resolution. urerofthe United States, and such subordinate otlicers

two dollars to two dollars and fifty cents per as shall be charged with the payment of said interest thousand, and if there were no internal taxes MONUMENT TO GENERAL SEDGWICK. shall assess and collect the duty hereby levied.

upon the article, would sell now at three and ja the US Mr. GARFIELD. I ask unanimous con: Mr. PIKE. Before the Chair again submits

a half or four dollars per thousand. The mansent to take from the Speaker's table the joint the question to the coinmittee, I desire to ex3 on the list

utacturers believe that if they be required to resolution ($. R. No. 129) donating certain plain that I made an appeal from the decision pack these cigars in boxes the effect will be captured ordnance for the completion of a of the Chair, not for the purpose of antagoniz: | simply to add a very considerable percentage

monument to the memory of the late Major | ing the Chair upon a question of order, but as people at

to the price; and they regard the requirement General John Sedgwick, with a view to put it the only way of getting this proposition before

as altogether unnecessary. I trust that the upon its passage: the Committee of the Whole. At this stage

amendment may

be adopted, so that the man. Mr. BROOKS. I shall object to taking of the session there is no way of presenting | ufacturers of cigars may have the same privi. from the Speaker's table any Senate bills that this matter, either in Committee of the Whole

lege allowed by this bill to manufacturers of succeed the gold contracts bill; but as this or in the House, unless in connection with this

tobacco and snuff, and may pack their cigars precedes that bill I do not object. bill. It was for that reason that I appeal from

in boxes or packages at their option. The joint resolution, which was read, re- the decision of the Chair.

Mr. SCHENCK. Mr. Chairman, this is quires the Secretary of War to place in charge Mr. SCHENCK. After having assisted in

simply a proposition to break up the whole of Major General II. G. Wright, Major General | getting the general bill out of the way.

provision in regard to the tax on cigars. We Glina Frank Wheaton, Major General George W. The CHAIRMAN. The Chair will state the

propose to collect the tax by means of stamps Getty, and Major General Truman Seymour, il grounds of his decision. A few days ago the

on the boxes, The gentleman proposes to three bronze cannon, captured by the sixth | House had under consideration. in Committee | allow cigars to be sold in bundles or packages, Army corps in battle, for ihe construction of a of the Whole a general tax bill.

with no limitations as to what the packages are statue of the late Major General John Sedg. ceeding with its consideration for some time

to be or how the stamps are to be affixed. wiek, to be placed on a monument erected to the House suspended further action upon the

This is one of the subjects upon which we had his memory by the sixth corps of the army of general bill and instructed the Committee of

the cigar-makers, tobacconists, &c., before us ; the Potomac. Ways and Means to bring in a specific bill

and it was agreed all round that in order to No objection being made, the joint resolu- relating to distilled spirits, tobacco, and banks.

collect the tax by stamps-the system which tion was taken from the Speaker's table, read The Committee of Ways and Means, in pur: they all wanted-it would be necessary to define a first, second, and third time, and passed. suance of those instructions, prepared and

what should be a box, how much a box should Mr. GARFIELD moved to reconsider the reported a bill bearing this specific title : “A

contain, and everything else necessary for the vote by which the joint resolution was passed ; bill to change and more effectually secure the

security of the revenue. I hope the amendand also moved that the motion to reconsider collection of internal taxes on distilled spirits

ment will not be adopted.
be laid on the table.
and tobacco, and to amend the tax on banks."

The amendment was not agreed to.
The latter motion was agreed to.

That bill was referred to the Committee of the
Whole on the state of the Union, with pre-

The CHAIRMAN. The next amendment
cisely the same restrictions and limitations as

in order is that reserved by the gentleman from Mr. BOLES, by unanimous consent, in

those under which the Committee of Ways and lowa, [Mr. Price.]
troduced a bill (H. R. No. 1316) for the relief
Means acted in preparing the bill. The Chair

Mr. PRICE. I move to amend section of soldiers honorably discharged from the ser- rules that the Committee of the Whole on the ninety-three by striking out the following vice of the United States; wbich was read a first state of the Union is no more competent to proviso: and second time, and referred to the Commit

enlarge legislation embraced in this bill than Provided, That from and after the passage of this tee on Military Affairs. was the Committee of Ways and Means in pre

act the duty on all cigars imported into the United Mr. UPSON moved to reconsider the vote

States from foreign countries shall be two dollars per paring it originally. On that ground the Chair

pound and twenty-five per cent. ad valorem. by which the bill was referred; and also moved rules the amendment of the gentleman from that the motion to reconsider be laid on the Maine (Mr. PIKE] to be out of order. From

The effect of this proviso is to reduce the table.

tariff on imported cigars. By striking out that decision an appeal is taken ; and the The latter motion was agreed to.

this proviso, as my amendment proposes, we question is, “Shall ihe decision of the Chair

shall leave the tariff on foreign cigars just what stand as the judgment of this committee ??? Mr. BOLES, by unanimous consent, also Mr. UPSON. I move that the appeal be

I am opposed to reducing the tariff

upon imported cigars ; I propose to leave it as introduced a joint resolution (H. R. No. 311) laid on the table.

it now is; so that if foreign cigars are imported to remove a suit from the circuit court of Frank;

The CHAIRMAN. Tbat motion is not in

into this country they shall pay the duty im. lin county, Arkansas, to the circuit court of order, as the Committee of the Whole has no the United States; which was read a first and table. The Chair will further state, that while

posed by the existing law.

Mr. SCHENCK. Mr. Chairman, my only second time, and 'referred to the Committee this amendment would of course be in orderin

desire is the House shall know what is proposed on the Judiciary. connection with a general tax bill, if this pro

and then submit it. The tax on domestic Mr. UPSON moved to reconsider the vote vision be decided to be in order, then any

cigars is five dollars a thousand and on foreign by which the joint resolution was referred; amendment whatever, throughout the whole

cigars three dollars per pound and fifty per and also moved that the motion to reconsider domain of taxation, would also be in order

cent. ad valorem. Cigars at the time of importbe laid on the table.

upon this bill, and it would be impossible to The latter motion was agreed to. limit it to the objects for which it was prepared.

ation weigh only twelve pounds. They run

down to eight or nine when they are dry, and ALEXANDER'S SAW BAYONET.

The question was taken upon sustaining the decision of the Chair; and upon a division

up to fourteen when very green. At fourteen Mr. PHELPS. I ask unanimous consent to

it would be forty-two dollars in gold or $58 80 there were-ayes 98, noes 21. subroit the following resolution for considera- Before the result of the vote was announced,

in currency. Fifty per cent. ad valorem or tion at this time:

$42 40 in gold, the average price in Cuba, is

Mr. HOLMAN. I call for tellers. Resolved, That the Committee on Military Affairs

twenty dollars in gold or $26 26 in currency.

Tellers were not ordered. be instructed to inquire into the expediency ofadopt. ing for use in the infantry regiments of the United

So the decision of the Chair was sustained.

Thus cigars coming from Cuba pay $84 80,

and from that down to seventy-six dollars. States Army Colonel F. W. Alexander's saw bayonet,

The CHAIRMAN. There were two or three

Now, sir, what has been the consequence ? patented in 1864, and to report by bill or otherwise. amendments reserved last night, the first being Mr. UPSON. I object.

The tariff is so high that it has defeated itself. that of the gentleman from West Virginia [Mr.

Instead of being a protection to the domestic
HUBBARD] to section ninety-one.
Mr. HUBBARD, of West Virginia. I move

manufacturer, it has stimulated smuggling in Mr. SCHENCK. I now insist upon the

all variety of cunning to get imported cigars regular order of business. to amend section ninety-one by inserting after

into the country without paying duty. It has the word “boxes," in line three, the words The House, under tbe order heretofore made,

in a great degree injured and interfered with accordingly resolved itself into the Committee or packages;” so as to read:

the domestic trade. In the interest of the

That from and after the passage of this act of the Whole on the state of the Union, (Mr. cigars shall be packed by the manufacturers in boxes

home nianufacture I think it better to adopt Blaine in the chair,) and resumed the consid- or packages not before used for that purpose, &c. the provision of the bill. If the committee eration of the bill (H. R. No. 1284) to change By the adoption of this amendment this bill think differently, they will refuse to adopt this and more effectually secure the collection of will correspond in this respect with the law as provision. internal taxes on distilled spirits and tobacco, it now stands, under which the cigar manu- Mr. MYERS. I rise to a point of order. and to amend the tax on banks.

facturer has the privilege of packing his cigars This portion of the paragraph which it is proThe CHAIRMAN.

The pending question in boxes or packages. Thus the cigar manu- posed to strike out I hold not to be in order, as is on an appeal from a decision of the Chair. facturer will have the same privilege allowed it is not germane to this bill. This is a tax The Chair ruled out of order an amnendment to manufacturers of tobacco and snuff under

bill, and that provision is in relation to the moved by the gentleman from Maine, [Mr. the present bill, under which they can pack tariff. PIKE,] to insert after section one hundred and their tobacco and snuff in packages.

The CHAIRMAN. It was not reserved

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when the bill was sent to the Committee of the that enough? They pay thirty-five cents a he is concerned he will consent to that amend-
Whole; and the committee is not competent pound for imported tobacco. That is only || ment, which he had not understood.
to decide out of order anything sent to it. seven dollars on each thousand cigars, esti. Mr. PRICE. I wish to ask the gentleman

Mr. MYERS. When this section was re- mating twenty pounds of tobacco to the one a question. I am very glad he has made the
served the point of order was also reserved. thousand cigars. Add to that the five dollars argument which he has. I would ask him

The CHAIRMAN. At no time since the tax, and the producer makes cigars from im- || whether under the present law we are not im. bill was committed to the Committee of the ported tobacco at a cost of twelve dollars a porting not only the raw material from Cubato Whole could the point have been well taken. thousand, to which should be added some fif- this country to be manufactured, but also bring. It should have been reserved when the bill was teen or twenty dollars for the labor of manu- ing the operatives and makers of cigars? And committed to the Committee of the Whole. facturing, making the entire cost from forty to I would ask him further, whether his object Mr. WASHBURN, of Massachusetts. I move fifty dollars a thousand upon an average cigar

would not be better accomplished by the adopto amend the text of the proviso by making the made in this country from Havana tobacco. tion of my motion to strike out the provision specific tax $2 50 instead of two dollars. Mr. Mr. WASHBURN of Massachusetts. In- and let the law stand as it is? Chairman, whatever may be said in regard to stead of forty or fifty dollars, the manufacturers Mr. KELLEY. I began by stating that I

oder it. the propriety of including a tariff item in an say they cost them over seventy dollars a thou- | thought this provision was improperly here and internal tax bill, I wish to call the attention sand.

ought to be stricken out; but as a matter of of the Committee of the Whole to the facts. Mr. ALLISON. I ask my friend to tell me compromise I would take the amendment of ] In the first place, as the tariff now stands, and what it costs to manufacture a thousand cigars? | the gentleman from Massachusetts, (Mr. WASHas it has stood for several years, the tax duty Mr. WASHBURN, of Massachusetts. The BURN.] I think the provision ought to be besledic upon imported cigars is three dollars a pound labor on the best cigars costs twent.y-two dol- stricken out; or that the committee ought to and fifty per cent. ad valorem, and upon im. lars a thousand.

withdraw it. But as it is too late to make a ported leaf tobacco it is thirty-five cents a Mr. ALLISON. Very well; I will take the motion to strike out and the committee is pound. That being the case the manufacturers i gentleman's own figures. The labor twenty. || indisposed to withdraw it, I accept the amendin this country have imported more leaf tobacco two dollars and the tobacco seven dollars make ment of the gentleman from Massachusetts as during the last year, and under this tariff we twenty-nine dollars, to which should be added a compromise. The tariff, as it stands, has have manufactured more tobacco of our own the original cost of the tobacco and the inter- introduced into the country a new branch of raising than imported tobacco than at any pre

nal tax. Now, we give one hundred per cent. industry, and will give fine American cigars vious day.

protection, and I submit that is enough. the world over the high reputation that the Nove, I supposed if there was no other ques. (Here the hammer fell.]

choice brands of Havana's have hitherto ention upon which the manufacturers were more Mr. WASHBURN, of Massachusetts. I || joyed. I now withdraw the amendment to the agreed it was upon this subject of the tariff. It withdraw the amendment.

amendment. seeins the committee reduced it nearly one Mr. KELLEY, I renew it. There is such [Here the hammer fell.] half, from three dollars to two dollars, and from a thing, Mr. Chairman, as value in stability in Mr. MYERS. I renew it. The amendment fifty per cent. ad valorem to twenty-five per legislation, and the proposition now before the I had desired to see adopted is one making it cent. ad valorem. The effect will be, with a House illustrates the want of stability in our $2 50 per pound and fifty cents ad valorem. tariff of thirty-five cents upon leaf tobacco, to legislation--at least on the subject of cigars | That, I think, is what it ought to be. I never

$92 destroy this manufacturing interest in this and tobacco. It is too late now, I suppose, to would have consented to pass this section, country.

make the point of order that this provision is hurrying through as we did last night, without I now submit to the committee while it may | improperly here in an internal tax bill. That || making the point of order that a tariff clause be proper to reduce it to some extent, still they it belongs to a bill of another class is palpable. I had nothing to do with the bill, but for the fact bave reduced it to such an extent that it will As it is not legitimately in this bill, it would, that I understood we should return to it. The destroy the manufacture of cigars in this coun- in my judgment, be but proper for the com- chairman of the Committee of Ways and try. I therefore hope my amendment will be mittee to withdraw it. There is another bill, Means inukes a new argument against the adopted. That makes it $2 50 per pound and I understand, pending before the committee tariff. He says that we are already getting a twenty-five per cent. ad valorem.

now in which it would be proper to present it. large number of these imported cigars. I do We are told imported cigars cost $84 40. Sir, the provisions of the tariff law, which not want them to come in and compete with be When you put the duty on leaf tobacco cigars it is proposed thus irregularly to modify, will, our own industry. I want no tariff that will ! manufactured here of the same quality cost if maintained, break up the importation of allow that. Let those who wish to smoke seventy-five to eighty dollars. With the reduc- high-priced cigars and establish their manu: imported cigars pay a little higher. From

Todd tion of the duty on imported cigars as proposed facture in this country. The chairman of the

every part of the country we are flooded with by the committee it will destroy the domestic committee, in his opening address on the pre- petitions to protect this industry. I propose to manufacture. I submit, sir, whether this tariff sentation of the original bill, said that the do it, and I believe this House, if it underitem, which has nothing to do with this tax importation of high-priced cigars through the stands the question, will do it. Now, I have bill, should be deferred to the consideration custom-house had almost ceased; but he did the figures here in answer to the figures of the of the general tariff bill. We will only have to not state what he might have done, that the chairman of the Committee of Ways and wait three or four months. I hope if insisted importation of the tobacco of which they are Means : on that my amendment will be adopted. made has very largely increased, and that the

Cost of pure Havana tobacco made in the United States Mr. ALLISON. I rise to oppose the amend- hands that formerly made them in Havana are

into cigars. ment, and I do so in the interest of the revenue. now making them in our cities. Thus the Wrappers, six pounds, at $3 50. Every gentleman on this floor knows very well house of Fuguet & Sons, of Philadelphia, for

Fillers, fourteen pounds, at $1 40.. that to-day there are as many imported cigars | merly among the largest importers of fine smoked in this country as at any former period, ) cigars into this country, are now large manu

Average cost of making... probably more. Yet the statistics of the facturers of fine cigars. When Congress broke Packing and shading...... Department show that we import only a very up their business as importers of cigars they

Ten boxes with trimining... few million cigars. The internal tax by this bill took to importing the finest leaf, and imported

Stripping stems..........

Tax. on imported cigars five dollars a thousand, also large numbers of Havana cigar-makers making really an increase upon the import from that city, and they are now, I might almost

Say duty to that extent. We compel every cigar say, by compulsion of Congress, very large importer, in addition to the present import importers of leaf and large manufacturers of

Same grade of cigars cost in Havana... duties, hereafter to pay five dollars. In other the finest Havana cigars; so that those who

Eleven pounds to finished cigar per thousand,

(there being a waste of nine pounds, one third words, he must pay on his imported cigars just || make them are consumers of our cereals, our stoms.) at two dollars duty... as inuch as the home manufacturer pays. Now, other taxable productions, and of foreign goods Twenty-five per cent. ad valorem.......... take the five dollars and add it to the present that have paid duties at an American custom- Freight and insurance....... duty. The tariff to-day is $83 40, (Gfty-six | house. If the clause is not withdrawn or dollars in gold,) with five dollars currency stricken out, I ask that the amendment of the added upon every thousand cigars imported, | gentleman from Massachusetts [Mr. WASH

Premium on gold........... estimating an average cost of forty dollars per burn) may be adopted, and that we shall not thousand, the average cost of production in drive these recently imported citizens back

Tax now added....... Cuba is forty dollars a thousand; so that to day to their native land, to manufacture goods we have an import duty of two hundred per ) for our consumption. We are deriving in cent. on cigars. Now, what is the effect? The internal taxes and customs revenue more from

So that you can import one thousand Havana kitect is that nearly all the cigars that come fine Spanish cigars to-day than we were under cigars for two dollars less than you can make up into the country are smuggled in the interest the old system. I would ask the gentleman

the same grade of tobacco here, and as where of the cigar manufacturers of this country. I from Massachusetts what is his precise amend.

the wrappers are of Connecticut seed-leaf, Penn suggest that this duty should be reduced. I ment?

sylvania or Ohio tobacco the cost is but $9 50 do not wish to discourage the manufacturer Mr. WASHBURN, of Massachusetts. To

less per thousand, you will have the fine grade here. add fifty cents to the two dollars.

Havanas, with their great prestige, imported Now, what reduction do we propose in this Mr. KELLEY. That is as I believed it to

at only seventy-five cents more per hundred bill? A reduction so that the tariff duty on be. I understand the gentleman from Iowa,

than a .commoner grade of American cigars. imported cigars shall be one hundred per cent. [Mr. Allison, ] who represents the Comunit- Certaivly this is sufficient protection. To obor more on the cost of those articles. Is not tee of Ways and Means, to say that so far as

tain this protection I last night reserved the

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right to amend this section when the House | At that time this subject of the duty on cigars | sentatives in an American Congress. We are would be fuller and better able to give the can be considered. "That will be the time and endeavoring to upbold and stimulate the indussubject attention. I still believe my point of that the place for considering this subject. If tries of our country. We are endeavoring, or order well taken, that a tariff clause is not ger- the present duty is too high, then reduce it. we should be, to encourage every branch of mane to a tax bill; but if a reduction of duty | Arguments on the one side or the other will be manufacturing which can by any possibility be is insisted on at least let us not go below the pertinent at that tiine, and will be germane to carried on by our own people. I represent a amendment which I have just renewed, that such a bill. But they are neither pertinent district in which the manufacture of cigars is this duty on foreign cigars shall be $2 50 per nor germane to this bill, which is one relating carried on to a very great extent, greater, per: thousand and twenty-five per cent. ad valorem. to the internal taxes of the country.

haps, than in many other districts in PennsylWhen the addition of the five-dollar tax is I am reminded that in the bill reported by vania; among my constituents in that are hunconsidered this will still reduce the duty $4 50 my colleague on the Committtee of Ways and dreds and thousands of people who are in some per thousand on imported cigars. Certainly | Means, [Mr. MOORHEAD,) it is proposed to re- cases working for men who have heretofore this is enough, and I hope the House will so duce the present duty oy cigars below what it imported cigars very largely in making what is consider it.

now is. On investigation and examination it called the American article, which I believe I hope that the committee will not adhere may be found proper to concur in the action will, in a few years, comparatively drive out blindly to every proposition that is contained in so recommended. But my objection is that of the market all other kinds. I believe that

this bill. That conimitice comes in here from such a provision is utterly out of place here most of us are learning to smoke American ım Jassachreita year to year with additional legislation, ac- in this bill; that it is a stranger and an outlaw; || cigars; and even those who think the imported

knowledging by so doing that they have made that it has no business here, and that it ought are better, will at last, if we do not legislate that the comer

mistakes. If nothing better can be obtained, not to be entertained in connection with this unwisely, come to believe that we can grow

I hope this amendment will become the law. bill. I hope, therefore, that the Committee tobacco here excelling much of the foreigu out and the

The CHAIRMAN. The Chair desires to of the Whole will concur in the motion of the tobacco. I would prefer the striking out of hinawit, I aceea

state to the gentleman from Pennsylvania [Mr. gentleman from Iowa, (Mr. PriCE,) to strike the paragraph which would reduce the duty ieman from date

Myers) that that gentleman is under a misap- out this proviso, and we can incorporate it in and leave it as in the present law, to voting The tariff, as prehension in regard to the point of order. The the tariff bill when it comes up for considera- for the amendment of the gentleman from the country a ner gentleman from Pennsylvania is minuted upon tion.

Massachusetts, [Mr. WASHBURN,] but will vote il give findes

the Clerk's record as having reserved the Mr. O'NEILL. Technically as a parlia- || for his amendinent if I can do no bettter. In be high ref.12.33

right to move an amendment to this section. 1) mentary point I do not care whether this pro- other words, I would prefer the duty at three Haranas barat The gentleman has no right on any parliament. || vision remains in the bill or not. If I thought dollars per pound and fifty per cent. ad valozdraw the latest ary point, because the point could not be made we could make a change in the tariff in this rem, than at $2 50 per pound and twenty-five

in Committee of the Whole, not having been respect I would say le: us do it here and now, per cent. ad valorem.
reserved at the time the bill was referred to without regard to the question of order which [Here the hammer fell.]
the Committee of the Whole.

was raised. I am very anxious that not only Mr. MOORHEAD. I rise to oppose the Mr. MAYNARD. Upon that point the upon manufactured tobacco, but upon every amendment pro forma. I desire to have this Chair will recollect that I arose in my place | other article which can be made in this coun: item and two or three similar items stricken

last night and announced that I would reserve try by our own people, there should be a out of this bill, for the reason that they propsented was a

the right to make a point of order on this tariff high enough to protect American indus. erly belong to a tariff bill, not to this bill, and
proposition. The Chair intimated that the try, and I do not care in what kind of a bill we have no business here.
right to make such a point must be first reserved get it. By striking out this proposition of the Now, sir, I know that it is very common
in the House. It would, perhaps, have been Committee of Ways and Means to reduce, the and very proper for members of a committee
time enough to make that decision when the duty from three dollars per pound and fifty to support the action of the committee in the
point was made. I merely said that I would cents ad valorem to two dollars per pound and House. I have endeavored to do so generally,
reserve the right to make it.

twentyfive cents ad valorein, we are thus far so far as I could do so with propriety. In Tbe CHARMAN. The gentleman from protecting men and women who are toiling this case I feel that I am entirely released from Pennsylvania [Mr. Myers] has made the point, in cigar manufactories against foreign compe. any obligation to support this item, for when and the Chair has ruled upon it.

tition and capital. Although I am in favor of it was introduced in the committee I told my Mr. MAYNARD. I rise to oppose the striking out these few lines, I am not even in colleagues that it was not germane ; that we amendment, and also to oppose the entire pro- favor of the amendment offered by my friend had no right under the rules of the House to viso of this section. It is due to myself to say from Massachusetts [Mr. WASUBURN) unless I introduce a tariff provision into an internal that I was not aware that this proviso was in find we cannot succeed in keeping in force the revenue bill; and that I would make objecthis bill until I saw it in print. I shall add existing duty. I have become convinced that tion to the provision whenever the bill should very little to what has been said upon the sub- the Thirty-Ninth Congress did right in not be reported to the House, knowing that the ject of the duty on cigars. The principal || reducing the tariff upon cigars, and it is only Speaker would rule it out.

But I happened objection which I shall now urge is, that in necessary to know to be convinced of that fact to be absent when the bill was reported. It my opinion this is a provision which has no that now there is invested in many of our dig. appears that the bill is now in such a position business in this bill.

tricts a vast amount of money, giving work to that the provision cannot be ruled out on a Mr. ALLISON. Will the gentleman yield hundreds of people in making up tobacco into point of order. But it is very easy for the to me for a question?

various shapes, and especially into cigars, who Committee of the Whole to get out of the diffi. Mr. MAYNARD. Undoubtedly.

heretofore could find very little to do, and || culty by striking out the provision; and as it Mr. ALLISON. Do we not by this very whose occupation was almost gone. Why? does not properly belong in the bill, as it is an bill ada five dollars per thousand to the duty For the reason so plainly indicated in the re- overturning of our whole system of legislation, on imported cigars, and by this very section? marks of my colleague,[Mr. KELLEY,] that the mingling together two incongruous subjects, Mr. MAYNARD. I do not so understand it. men who imported cigars see they can use their || I hope the committee will strike it out. And Mr. ALLISON. I understand it so perfectly. || capital to more advantage in Philadelphia by just at this point I would appeal to the chair

Mr. MAYNARD. I do not understand that importing it in the leaf and manufacturing it man of the committee, who is so well versed to be the effect of it. But even if it is, as I where it is consumed. I do not mean to be in matters of this kind, to give us his opinion was remarking by way of apology, this

par- understood as intimating that Philadelphia is whether this proviso legitimately belongs in ticular feature of it had escaped my attention, the only locality in this country where Ameri- this bill or not. and I was not aware it was in the hill until Í can cigars are made or where American to- Mr. SCHENCK. It does legitimately besaw a printed copy of it. Now, I object to its bacco is manufactured, but I want to say that || long there, because the majority of the combeing here as a part of this bill, proposed as

in our city the manufacture of cigars is carried mittee agreed to put it there, and reported it it was under the restricted and limited instruc- on by such firms as the one mentioned by my to the House to take its fortune with the rest tions of the House, which instructions would colleague, employing hundreds and thousands of the bill; and though I, as well as my colexclude it, and which provision the Chair of men and women, and even children. Then league, (Mr. Moorhead,] voted against it, I informs us would be ruled out of order had do not let us diminish their work by legislating supposed (for I may as well define my own that point been made at the proper time.

But as proposed by the Committee of Ways and position now) there was no impropriety on my I am opposed to introducing such a provision Means. I am in favor of the duty remaining part in expressing the views of the committee, into an internal tax bill under any circum

just as it is.

I am sure those who consume and I undertook to be the committee's organ. stances. Duties on imports and internal taxes | foreign tobacco made up before importation I find, sir, however loyal I may try to be to the should be kept separate and distinct as well in will not complain of Congress for trying at committee in presenting its views according to the enactment and passage of the law as in the least to encourage the industricus among our the decision of the majority, so far as the indiadministration of the law. As the gentleman own citizens. Many of the smokers of imported vidual members of the committee are confrom Pennsylvania [Mr. WOODWARD) observed cigars will, if by our cherishing home industry cerned, they too often, when in the House, a few minutes ago, the Committee of Ways and we can improve the growth of American to vote according to the particular views they Means have officially announced in the House bacco by encouraging the planter and farmer, 1 expressed in committee. The consequence is, their intention to ask leave to introduce a tariff after a while use it as it comes from our own instead of presenting an undivided front, we bill, and to invoke action upon it. I trust that soil, and already are enjoying American cigars are divided, and lose the force we otherwise permission will be granted by the House, that made of foreign tobacco in American work- would have. Since we have become demoralthe Committee of Ways and Mears will act shops.

ized on this subject, I do not hesitate to conunder it, and that the subject of the tariff will To come to the practical point, why should fess, if we may divulge the secrets of the comcome up, and that hefore this session closes. we seek to reduce the duty ? We are Repre- mittee, whatever inay be the case with others,

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I thought it should have never gone into the Mr. HOLMAN. I rise to a point of order. 80 much of the forty-first section of the act to probill. I presented the views, however, of the When the original bill was pending I sought vide ea rational currency secured by a pledge of committee.

an opportunity to offer this proposition, and tion and redemption thereof, approved June 3, 1864, Mr. HOOPER, of Massachusetts. If the the chairman of the committee [Mr. SCHENCK] as imposes a tax on the banks organized under that objection of the gentleman from Massachusetts stated that inasmuch as it was desirable to

act, and requires returns to be made to the Treasurer refers to the internal tax of five dollars being dispose of the section then pending, he would

of the United States, be, and is hereby, repealed:

Provided, That the deposits in associations or comapplied to the imported article-

allow me the opportunity of submitting the panies known as provident institutions, savingsMr. MOORHEAD. I am just coming to amendment at a subsequent time. I submit

banks, savings funds, or savings institutions, having that. The chairman says it is legitimate to this that inasmuch as this is really a continuation

no capital stock and doing no other business than bill because it puts five dollars tax upon im.

receiving deposits to be loaned or invested for the of the same bill, I should have permission to sole benefit of the parties making such deposits, ported cigars. My objection is as I have stated offer it now.

without profit or compensation to the association or it. I do not want a tariff item in an internal The CHAIRMAN. The chairman of the

company, shall be exempt from tax on so much of

their deposits as they bave invested in securities of tax bill. The sub-committee of the Commit Committee of Ways and Means had no power the United States, and on all deposits less than $500 tee of Ways and Means have acted on this to make any promise to bind the House. The made in the name of any one person; and the resubject and have recommended a reduction of Chair rules it out of order.

turns required to be made by such provident insti.

tutions and savings-banks shall be made on the first the duty to some extent on these cigars. I Mr. HOLMAN. I appeal from the decision Monday of January and July of each year, in sach

paration hope, therefore, this item, which seems to of the Chair.

form and manner as may be prescribed by the Comtrouble us and is acknowledged by the best The CHAIRMAN. The Chair will not

missioner of Internal Revenue.

Bethard parliamentarians to be out of order in this bill, repeat the grounds upon which he made a Mr. POMEROY. I move to strike out the will be stricken out. similar decision this morning.

foregoing section, and if the committee shall Mr. ALLISON. I only desire to add a word The question being taken on sustaining the see lit to do it, I shall move to strike out the ni le of to what I have said before. I do not think decision of the Chair, it was sustained-ayes next. I will state briefly my reasons for 80 gentlemen understand the question involved. 91, noes 16.

doing. I wish the committee to consent to My friends from Tennessee and Pennsylvania Mr. ROBINSON. I move to insert after take a vote on this motion, so that if it preon the Committee of Ways and Means under- section one hundred and seven the following vails no time need be wasted in amendments. cm take to carry their point on a technical point. as a new section :

Now, I appeal to the fairness and courtesy of They forget we have imposed a tax of five dol. SEC. - . And he it further enacted, That no stamp the committee. The Committee of Ways and lars on imported cigars.

under the internal revenue law shall be required on Means some weeks since presented a bill cov. Mr. MOORHEAD. We did not forget it.

any certificate or ticket given by pawnbrokers for
the article pledged.

ering the whole system of internal revenue, Mr. ALLISON. I cannot yield. Why do

based upon two grounds: first, taking the subwe put five dollars upon them? Because we

I believe this is in order. We have got

jects of distilled spirits and tobacco in which have adopted a new system of stamps, and through with the subject of cigars, and we are

great frauds exist, and not only amending the we put the same amount on imported cigars

now proceeding to the consideration of banks. as upon manufactured cigars. Shall we not

Mr. BOUTWELL. I raise the point of order

tax upon those articles, but also providing for

a new administration of the revenue system by beside reduce an onerous import duty? Now, that this is not germane.

wbich that tax was to be collected. They fur:

The CHAIRMAN. The Chair sustains the I stand here as much as any man in favor of

ther undertook in tbat bill to readjust and redis. protecting the cigar manufacturers of this point of order.

tribute the whole internal revenue tax. After

Vet? country. This provision is to do away with

Mr. ROBINSON. It is important that this

spending some ten days on that bill the Comthe smuggling of imported cigars. Everybody should pass, and I give notice that I intend to

mittee of the Whole decided that it should be who knows the A, B, C of tariff questions || press it at some place. Will it be in order to

laid aside, and ordered the Committee of Ways knows there are more cigars smiggled than

bring it in after we dispose of the matter of

and Means to report a bill to revise the tax on pay duty. In 1860 we imported five hundred

The CHAIRMAN. It will not be in order

distilled spirits and tobacco, and also to promillions of cigars which paid duty. As many

vide a new administrative plan for collecting are smoked now as then, but a very small

at any time.
Mr. MOOREHAD. Will it be in order to

it. It appears by the Journal that some time amount of imported cigars pays duty. The have a vote in the House on striking out that

afterward a resolution was by unanimous conresult is they come in without paying any duty, section in relation to cigars ?

sent in some manner introduced and passed and are a serious injury to our domestic man

The CHAIRMAN. It is competent for the

instructing the committee also to report upon ufacture. I am willing to be fair; I am will. House to allow the committee to vote, but not

banks, a subject having no more connection ing to adopt the amendment of the gentleman for the committee to allow the House to vote.

with the subject which the House had seriously from Massachusetts of $2 50 a pound upon

The Clerk read as follows:

determined that the Committee of Ways and imported cigars. I am not surprised the gen

Means should report this bill upon than it tleinan from Pennsylvania should insist this

Banks and Bankers.

would have been to have referred to them the should go into the cariff bill. He would have Sec. 108. And be it further enacted, That there shall be levied, collected, and paid a tax of one twelfth of

subject of the tax upon manufacturers or upon a wall around the country and all importations one per cent, each month upon the average amount

brokers or special taxes. prohibited. The duty now is two hundred per of the deposits of money, other than public money Now, I do not wish to impugn the motives cent, and defeats the object sought to be accom

of the United States, subject to payment by check or
draft, or represented by certificates of deposit or

of any person in the matter; but I need not plished. The same quantity of cigars is im

otherwise, whether payable on demand or at some say to any gentleman here that no such resoported, but they are smuggled and do not pay future day, with any person, bank, association, com- lution as that could have passed, had the House duty.

pany, or corporation engaged in the business of
banking, and a tax of one fourth of one per cent.

known what was before it, by the unanimous Mr. MOORHEAD. The gentleman says each month on the average amount of all deposits

consent of the House. It was entirely foreign this stamp tax is an import duty. I thought of public money in their possession to the credit of to the bill which the House had determined he was better informed. He has been on the the Treasurer or any disbursing officer of the United States; and a tax of one twenty fourth ot one per

they would act upon at this session. Without Committee of Ways and Means for


years. cent. each month, as aforesaid, upon the capital of going now into the question whether or not have sat beside him and opposite him, and I any bank, association, company, or corporation en- the taxes upon banks are such as they ought am sorry he should come here and expose him. gaged in the business of banking, and on the capital employed by any person in the business of banking: | taxed by law, and that there is no interest in

to be or not, I submit that they are already self in this way. [Here the hammer fell.]

bonds; and a tax of one sixth of one per cent, each the United States where taxes are more fairly The amendment of Mr. WASHBURN, of Mas

month upon the average amount of circulation issued
by any bank, association, corporation, company, or

and honestly paid than those of the banks, sachusetts, was agreed to.

person, including as circulation all certified checks because there is no opportunity for concealMr. PRICE called for tellers on his motion and all notes and other obligations calculated or intended to circulate or to be used as money, but not

ment or for fraud. Every dollar of their cir: to strike out. including that in tho vault of the bank, or redeemed

culation is known at the Treasury Department Tellers were ordered ; and Mr. Price and and ou deposit for said bank. And a true and accu

Every dollar of their Government deposits is Mr. Allison were appointed.

rate return of the amount of circulation, of deposit, known at the Treasury Department. *And of

and of capital, as aforesaid, and of the amount of The committee divided ; and the tellers notes of persons, State banks and State banking

their individual deposits sworn statements reported—ayes 51, noes 52.

associations, and of States, cities, towns, or other bave to be periodically made. Every dollar So the amendment was rejected.

municipal corporatins, paid out by them for the of their taxes is being collected. Nobody Mr. HOLMAN. I submit the following || by each of them to the assessor of the district in which previous month, shall be made and rendered monthly

pretends that any frauds are being perpetrated amendment: such bank, association corporation, or company may

under the present law. And yet under that And be it further enacted, That there shall be assessed

resolution the interests of these banks are and levied on the interest and interest coupons accru- business, with a declaration annexed thereto, verified dragged in here to be revised in a bill the ing on all bonds, the interest on which is payable at

identor cashier of such bank, association.corporation, the Treasury of the United States, an annual tax of

only object of which is to break up the whisky sixteen and two thirds per cent., which tax shall be or company, in such form and manner as may be prescribed by the Coinmissioner of Internal Revenue.

ring and to prevent tobacco frauds. Now, withheld by the proper officer of the Treasury at the And for any refusal or neglect to make or to render

without going into the subject of what the taxes time of the payment of such interest or coupons. The tax hereby provided for shall be withheld from such return and pay the tax, any sucb bank, associa- are or ought to be, I submit to the committee the interest which shall become due on and after the tion, corporation, company, or person so in default shall be subject to and pay a penalty of $200, besides

that as an act of courtesy to the committee 1st day of November, 1868. the additional penalty and forfeitures in other cases

having charge of these interests in this House, Mr. GARFIELD and Mr. SPALDING

provided by law; and in default of such return the and as an act of courtesy toward the banking raised the point of order that the amendment several amounts subject to tax shall be estimated by interests, this section should be stricken out:

the assessor or assistant assessor on the best informawas not germane to the bill. tion he can obtain. And in the case of banks with

and should be considered with the other great The CHAIRMAN. The Chair sustains the

branches, each branch sball make a separato return, industrial interests of the country when we

and the tax shall bo assessed on each severally. And point of order.

come to consider the special taxes, the manu.

so much of the forty-first section of the stron side a national correst Liita United States bonds, and to provide the tion and redemption thereof, approvedla as imposés a tal on the banks om te art, at requirt returns to be made of the Unità Staies, be, and is bepping Prorvet, That the deposits in /***** panies known as provident is an si banas, savings focis, (STUDENTS Du rapital sock and doing nobe * rereising deposits to be loaned er de 30 e benefit of the parties makiar els without profit or compensation to company, shall be excit fins are their deposits as thes hare OTT the United States, and on all deporte Gad in the name of any one veten, D2 turn required to be made by sara por deres tutions and earipes-banka shul, bem. Baday of January and Joy of esta pesa Crin ani manger as may be presc?LE 42

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muzivner of Internal Rerende.

Mr. POMEROT. 1 more to stara foregoing section, and if the terms mee ti to do it, I shall more to se. next. I will stałe briefly my ra: doing. I wish the committed to change take a vote on this motion, som valls no time need be wasted in Now, I appeal to the fairness adde? the committee. The Committee dine Means some weeks since presencial pricg the whole system of intem 11 based upon two grounds: tirs, 4.2 jects of distilled spirits and tobar :C great frauds exist, and Otost tax upon those articles. bat a.s. a new administration of the referens which that tax was to be coleted in ther undertook in that bill to read, ses tribute the whole internal relevante spending some len days on tási

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Mr. PRICE. Not at all. Where is the facturers' taxes, the tax on brokers, and other || in the tax on whisky and tobacco. But I ask subjects which are cognate to it.

the gentleman if that is a sound reason for lay- || provision in regard of taxation of Government Mr. SCHENCK. I do not understand the || ing violent hands upon the banking system, deposits?

and doing that which is equivalent to striking Mr. INGERSOLL. The three per cent. tax gentleman from New York (Mr. Pomeroy] as reflecting in any way on the Committee of || it out of existence? I am therefore somewhat on Government deposits had been adopted. Ways and Means in this matter.

astonished that the gentleman should allude to Mr. PRICE. That is not in this bill. Mr. POMEROY. I stated distinctly that that action of the House as a reason for this Mr. INGERSOLL. It is in this bill. This the Committee of Ways and Means had no provision in regard to banks, or even as an sectiou, as now reported, is very nearly in the thought of any such thing. apology for its introduction.

same form as the section agreed to by the Mr. SCHENCK. The Committee of Ways Mr. SCHENCK. I make no apology for Committee of the Whole when the original and Means retired with as much equanimity as the introduction of this provision. We were bill was under consideration. The bill was they could summon for the occasion to recon- ordered to introduce it, and we should not recommitted, gentlemen voting for that motion sider the wbole matter of taxes so far as whisky have introduced it without the order of the from various motives. Sonne undoubtedly and tobacco were concerned, supposing that | House.

supported the motion with the intent to detheir duties were confined to those two subjects Mr. DELANO. I know that the Committee feat any legislation on the subject. Those of taxation. Two days afterwards, they re- of Ways and Means were instructed by an largely interested in manufactures, that interceived unexpectedly a resolution, which we order of the House to tax banks. The com- est having been relieved from the five per afterward understood passed the House by | mittee, however, was not instructed to tax cent., did not wish any new tax,bill; they unanimous consent, instructing them also to them unreasonably. The resolution relating were satisfied with existing legislation. Those consider and report upon banks in connection to that subject was introduced under circum- who desired that the tax on whisky should with the other two subjects. That we did, and stances alluded to by the honorable gentleman remain at two dollars did not want any tax the result is before the House. While I am from New York, [Mr. Pomeroy;] it was bill which would reduce that tax. Those who up I will simply say in regard to this section | extorted or obtained from the House without did not want to have the bank interest dis. that it is the section just as it was agreed on the consent of the House.

turbed had no reason to desire any modificain Committee of the Whole, with the single Mr. INGERSOLL. Allow me to correct tion of the revenue system. So, acting from exception of an increase in the tax on cir. the gentleman. That resolution was adopted various motives, a majority of the House de. culation. The Committee of the Whole had by the unanimous consent of the House. cided to recommit the bill, providing, however, amended the original report of the Committee Mr. DELANO. I am speaking of things as that a revision of the system of taxation of of Ways and Means by adding three per cent. they are in fact, not as they are in mere name. whisky and tobacco should be embraced in a upon Government deposits, doubling the tax I mean the substance of things hoped for; and I new bill and reported to the House at some on private deposits, and striking off half of what allude to the evidence of some things not seen. subsequent day. bad been recommended on circu ion. The As I understand it, this section provides a Within two days after the action of the House committee restored the tax on circulation, and tax of one per cent. upon private deposits, a to which I have referred, I presented, during with that single change reported it back as it tax of three per cent. on public deposits, a the morning hour, a resolution giving the Comhad passed the Committee of the Whole to tax of one per cent. upon capital, and a tax mittee of Ways and Means authority to embrace take its chance again. I will only say that of two per cent. upon circulation; the total in the bill to be reported the subject of the while it is for the Committee of the whole or amount being seven per cent., and amounting | taxation of banks. This resolution was read for the House to determine whether or not they to one hundred per cent. more than the pres. at the Clerk's desk in the bearing of the will retain this provision in regard to banks, ent tax. Now, no one who will examine this House. It was read a second time, in conseit is my duty to call attention to the effect of section will fail to see that the animus of it quence of a suggestion that the gentleman its action.

is the destruction of the banking system. If from Indiana [Mr. JULIAN] had had a similar I have already explained to the House that the that is the purpose of the House and country, resolution referred at some prior time during laying aside of the other portions of the bill then, gentlemen, lay your hands on the sys- the morning hour. That was discovered to be of the general bill introduced by the Commit- tem and destroy it. What you will have after. a mistake; and my resolution having been tee of Ways and Means and confining legisla- ward it is not for me to predict, for I am not twice read, and objections asked for, no mem. tion to distilled spirits and tobacco-takes | authorized or empowered to prophecy upon ber objecting, the résolution was adopted unanaway an advantage of about seventeen million this subject. But that is the purpose of the imously. Owing to the circumstances I have dollars in the estimated revenue that we should bill. I know it is very popular to attack banks. stated, the resolution received more attention have derived from that bill. · But if we include It is always, therefore, a pleasant recreation for | from the House than any resolution-causing banks, that amounts to nearly four million dol- politicians who are seeking notoriety. I know no debate-which has been adopted during the lars out of the $17,000,000. If this should also, what I desire to say here and have go present session. remain, the deficiency, comparing our present before the country, that at the present moment In pursuance of that resolution the Comlegislation with the legislation originally pro- the banks pay better for the revenues of the mittee of Ways and Means took jurisdiction posed by the Committee of Ways and Means, country than capital in any other form. Your of the subject, and they have reported these would be a little short of $12,000,000. If the banks now pay in the form of taxation, local || sections with the view of increasing the revebanks are dropped also, the deficiency then, as and national, $18,338,430 per annum. The nues of the Government from the national compared with that bill, will be about seventeen entire interest on the amount of bonds which banks. The question is whether these banks, million dollars. It is for Congress to determ- are deposited as security for the circulation of which can well afford to pay this additional tax, ine whether they can afford this, or how far it these banks amounts only to about eighteen mil- shall contribute four or five million dollars more ought to be considered in the determination of lion dollars. It thus appears that the banks to the revenues, relieving to that extent the the question whether you will or will not strike pay a larger sum for taxes than the total various industries of the country, or whether out those sections in relation to banks. I re- amount of interest on all the bonds which they we shall legislate in the interest of what is now peat that this section was put in here simply by hold as the basis of their circulation. In the a monopoly, an absolute monopoly, an aristoorder of the House. I am asked what is the State of Ohio the tax upon banks, State and cratic monopoly, that is making more money difference between the present tax on banks national, upon the average throughout the State, on its capital, invested on sater and more and the estimated tax to be derived should this for it varies in different parts of the State, reliable and remunerative employment than is section be retained in this bill. I have already amounts to about six and a half per cent. realized by any like amount of capital in the stated that the increased revenue to be so de. In the county in which I live it amounts to United States. I say without fear of contradics rived will be nearly four million dollars. That over six per cent. upon the amount of capital tion that there is no $300,000,000 invested in is, taking the tax upon deposits of public invested in your banks. The banks are there. any other business in the country with the same moneys, the increased tax upon private depos- fore at the present day, in the way of con: security and certainty that it will reiura a round its, and the increased tax on circulation would tributing to the revenues of the country, the sum to the investor as this banking capital. make the increased amount to be derived from very best property you have. For example, [Here the hammer fell.] banks about four million dollars. And there in the State of Ohio-and I presume the case Mr. DELANO. I withdraw my amendment. is this further provision to be borne in mind: is the same elsewhere the amount of bonds Mr. PRUYN. I renew the amendment. Mr. we include in the internal revenue system the deposited with the National Government as a || Chairman, I think it does not matter very national banks as well as the State banks. security for the circulation becomes a capital much from what quarter the resolution referred

Mr. DELANO. I move to amend this sec- for taxation, which is not the case with bonds to emanated; but I am surprised that it came tion pro forma by striking out the last word. in the hands of private individuals. Every from the gentleman from Illinois, [Mr. IngerThere is no member of this House who has a dollar which you call out and put into your SOLL.] He has been appealing to this House more sincere respect for the opinion of the banks in this way makes a source of local tax- to modify the taxation on a great interest which chairman of the Committee of Ways and Means ) ation and of support to the Government. he represents, which modification I admit to (Mr. Schenck) than I have, or who listens to [Here the hammer fell.]

be beneficial to the country as well as that parwhat reasons he has to assign for his measures

Mr. INGERSOLL. Mr. Chairman, if I am | ticular interest; yet at the same time he turns with more desire to understand them. But I not mistaken, on the day on which the original round and attempts to impose an increased want to suggest to him that the reason he has tax bill reported from the Committee of Ways burden on another interest which is now paying last assigned for this tax upon banks is fallacious and must be unsatisfactory.

and Means was recommitted, this section on fairly and squarely every dollar of taxation

banks had already been acted upon and imposed on it. That at least is not fair play Now, it may be true that the action of this adopted by the Committee of the Whole. on the part of the gentleman from Illinois. House has rendered necessary some other

Mr. PRICE. As it is now?

Mr. Chairman, one word on the subject sources of revenue than those that are embraced Mr. INGERSOLL. Nearly as it is now. of this bank tax. It is proposed to increase


mittee of the Whole decided it 10 iaid aside, and ordered the Cosmine if and Means to report a bil to reix

distilled spirits and tobacco. an vide a new administrative pisa iz sza !!! It appears by the Journal that afterward a resolution has been sent in some mapper introduced

instructing the committee also le petit the banks, a subject having no mert

with the subject which the House determined ibat the Commitee Means should report this will wouid have been to hare referred subject of the tax apoa mala.com broners or special taxes

Now, I do not wish to impagube


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