USA > New Jersey > Documents relating to the revolutionary history of the state of New Jersey, Vol. II > Part 6
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The legislation to which reference was made was entitled "An Act to raise a Fund by Taxation for discharging the Debts and defraying the necessary Expenses of the State of New Jersey," and was introduced early in November, 1777. Upon the 18th of that month the House spent the entire day in the discussion of the bill. The measure was finally passed March 26th, 1778. The objections made by the correspondent do not appear to have entirely influenced the members of the Legislature. It is provided in the statute that all mortgages, bonds, bills and notes upon interest deemed recoverable and to be of value, owing to inhabitants of New Jersey from any person or persons in the United States, shall be valued at one-thirtieth part of the principal thereof, including all moneys at interest under the care of executors, guardians and others acting as trustees. Exemptions were made in case of certificates for moneys lent the United States. "AND PROVIDED, ALSO, That if any Inhabitant of this State pays Interest for a Part or the Whole of the Sum, he receives Interest for, then and in that Case he shall not be rated or assessed for any larger Sum than the Sum he receives Interest for, exceeds the Sum he pays In- terest for." See "Votes and Proceedings of the General Assembly of the State of New Jersey," October 28th, 1777, to October 8th, 1778, 2d Ses- sion ; also, Laws of New Jersey, Chapter XXIII., 1778.
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NEWSPAPER EXTRACTS.
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Jan. 2, 1778.
ESTEEMED FRIEND
YOUR favour of the 20th of last month I just now received, and am much pleased with your clear and circumstantial account of the state of our affairs ; and also with your remarks upon some of the late proceedings of government. In the sequel, you are pleased to ask me, what objections I have to taxing bonds, bills, and other specialties, drawing interest? To give you a full answer to this question, would require more time than I can at present spare. I will, however, endeavour to send you a few of my objections in a short way.
First. The measure appears to me to be exceptionable, in that it would probably be attended with effects injurious to this State in set- tling our quota of taxes with the other States. The computed wealth of each State, may, hereafter, if not in the first instance, be the rule whereby to fix and regulate its quota; and as that will probably be taken from the assessors duplicates, where bonds and bills (which are really no part of the wealth of any country, farther than the value of the paper and parchment extends) to be inserted in our duplicates, as part of our property, it might be a means of raising the quota of the state far beyond what it ought to be.
But lest you should doubt the reality of what I have said respecting bonds and bills being no part of the wealth of a country ; I will state a case, that perhaps will set it in a clear light. Let us suppose New- Jersey to be, at this time, worth just one million sterling; that the present proprietors sell it for that sum, to such of the community as have no property, and take their bonds and bills for the money. Here you see bonds and bills would take place for a million of money, without increasing the wealth of the state one farthing: New-Jersey would still remain to be worth but just one million. Which very plainly shows, as I said before, that bonds and bills are no part of the wealth of a country ; nor does it less plainly show how absurd it would be to give them a place in our duplicates.
2dly. I object to the measure as impracticable. Bonds and bills, like cash, are usually kept secret. Some people perhaps would render an account of all they have, others of part, and some of none. And which way, let me ask, should we ever get rid of this difficulty-of this total uncertainty-so as to render the measure with any tolerable face of justice practicable? For my part I see no way : unless each assessor should be obliged to examine upon oath or affirmation, every person within his precinct, whenever a new assessment is made, re- specting the bonds and bills he or she may then have. Nor indeed would this (though a curious piece of business) be very likely to answer the end. For if men can hardly swear the truth between neighbour and neighbour, where they are at all connected with either side, much less would they be likely to do it between themselves and the publick : and such frequent and general swearing, would naturally render an oath more and more familiar, and, in proportion, diminish the force of the obligation. In short, I fear the constant and strong temptation to perjury, that would attend this kind of swearing, would so far get the better of human virtue, as to render an oath of little or no signification. Perjury, like other crimes, would seem to lose its criminality in proportion as it would become fashionable.
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"Vice is a monster of so frightful mien,
"As, to be hated, needs but to be seen :
"Yet seen too oft, familiar with her face,
"We first endure, then pity, then embrace."
It might be observed too, that putting men upon their oaths in cases where their own interest is at stake, would be repugnant to one of the oldest and most approved maxims of our law. But then perhaps old maxims may not be worth our notice. For some of us, without one jot of experience in the business of legislation, and with but very little knowledge of the law, and less of politics, are so much wiser than our predecessors, either here or in Britain, notwithstanding their great experience in legislative affairs, their deligent researches after political knowledge, and the purest principles and theory of civil government, as to be able to form for ourselves maxims far superior to theirs, and to bring into existence schemes equally new and admirable.
It should ever be an invariable rule to make nothing taxable but what is visible : and the moment we quit this ground, we step into the dark, ridiculously to grope after what we can never obtain.
The parliament of Britain have long been at their wits end for ways and means whereby to raise supplies of cash adequate to the demands of the state ; and yet they have never, in any one instance, undertaken to tax bonds, bills or mortgages. Our assemblies too have ever avoided the measure. But then what is that to us? We say they were all wrong. Are we sure that we are right? He who quits the old beaten way, should first take care to be well advised of a better. There is frequently more in old ways to recommend them, than we are at first aware of. Hence custom is said to be an argument of right : and this argument is directly against us. Custom too, is an apology for doing wrong. But if we should depart from the old ground, or mode of taxation, what apology will there be found for us, in case that should prove to be wrong ?
People are generally best satisfied with what they have been most used to. It is not sufficient that you lay no greater burden upon a man than he has been accustomed to bear : You must lay it upon the very same shoulder that he has been used to carry it upon; otherwise he will feel himself uneasy and perhaps give you trouble.
We may think our leaders have all hitherto gone wrong : and we may have honest intentions to rectify their errors : but then don't let us be too hasty in making the attempt. A second thought frequently cor- rects the first ; and this year's experience may render us much more capable of rectifying the errors of our ancestors, than at present we are; or it may possibly convince us, that they have left us none to rectify. It often happens that we think others err, merely because we have not judgment sufficient to discover the reason and rectitude of their conduct. And when this is the case, time, and a dispassionate inquiry, usually prove the best remedies.
3dly. I object to the measure as unjust. It would raise a two-fold . tax upon property. Suppose, for instance, A to have a farm worth one thousand pounds, and no other estate; that B, who has no estate, pur- chases the farm of A for the sum mentioned, and gives him a bond for
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the money, payable with interest from the day of purchase. Here, 'tis plain, that A and B, taken together, would have but one thousand pounds worth of property ; yet according to our scheme, they must be taxed as tho' they had two-B for the farm, and A for its value. A most glaring piece of iniquity! iniquity however that attends the measure, trace it where you will. For if B had borrowed a thousand pounds of A, and laid it out in a farm, or other taxable property, the case would have been just the same-B must have paid tax for the property, and A for its value.
As the property is ever in the hands of the borrower, there, and there only; it can with propriety be taxed. And if upon a general scale, interest is so high that the borrower can not afford to pay the tax, let it be reduced ; or let him be authorized to deduct the tax out of the interest when he pays it. Either of these ways would be practicable and just; but the former, perhaps, would be much the most eligible. Our duplicates might then remain as they are-they would not exhibit an exaggerated idea of our wealth-they would not be disgraced by partial accounts of bonds and bills, mere imaginary property ; nor would our assessors be degraded by being turned into so many legal pimps-by being compelled to pry into people's private and secret con- cerns - - - to inquire after their bonds and bills, debts and credits ; mat- ters that the publick in reality have no right to meddle with; and which genuine pimps alone would care to inquire after. Men of honour and delicate feelings would disdain the ungracious task. They would blush to ask the questions, and they would scorn to give the answers.
I admire the promoters of this curious scheme have never, in their great zeal for justice and impartial dealing, thought of setting on foot a similar one with regard to landlords and tenants. Surely it would be as just to tax both landlord and tenant for the property in the hands of the tenant, as to tax the borrower and lender of money for the property in the hands of the borrower. If it would be unjust to levy a two-fold tax in the former case, why not in the latter? Some indeed say they are for the better, because it would lessen the tax upon the rest of the community. (O how merciful !) But would not the former also? And were we to tax red hair and long noses, it would have just the same effect ; and yet I suppose nobody ever dreamt of considering them as proper objects of taxation.
.
You lend me, on easy terms (which the legal terms are ever to be supposed to be) your money to make an estate with. Now the question is, whether you, or I, ought to pay tax for this money, whilst I possess it? For that we should both pay tax for it, is really a proposition too ridiculous to deserve any serious attention. And were you to ask me the question, I am sure I should be ashamed to answer, that you ought to pay the tax. I may very well be supposed to derive a much greater profit from the money than you will whilst it remains in my hands: And upon this supposition, your paying tax for it must be the height of injustice. But really I see no injustice in my paying tax for it, whilst I possess it with a view of gain; even though the benefit I derive from it, should not be equal to yours. For upon what principle of equity can I expect to have your property on equal terms of ad- vantage with you? If you risk your money in my hands upon such
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terms, as to enable me to pay tax for it, and at the same time to in- crease my estate faster by the use of it, than I otherwise could have done, with the same care and industry, I am clearly beholden to you for that extraordinary gain. And why the profit I derive from your money, should exceed, or equal yours, in order to render it just for me to pay the tax, I cannot conceive ; though I know it is a doctrine held forth by some. If by the utmost stretch of industry and care, I can now clear but fifty pounds a year, and by your lending me one thou- sand pounds, at seven per cent. per annum, taxable in my hands, I am enabled to clear fifty pounds a year more; am I to quarrel with the contract subsisting between you and me as hard or unjust, because the gain I derive from your property is not equal to yours? Surely if your money enables me to double my income, without any additional fatigue of body or mind, I ought to think myself exceedingly well dealt by, and greatly obliged to you for risking it in my hands. And was I to ask you to pay tax for it whilst I possess it, it would certainly evidence a degree of meanness, that you would most heartily despise. But then perhaps what would be mean-what would be despicable in an in- dividual to ask, may well enough become a legislature to enforce.
The property being universally taxable in the hands of the borrower, it is to be supposed that all legislatures, whoever undertook to regulate the interest of money, would naturally regulate it accordingly - - - that they would fix it so low as to enable the borrower to pay the tax. And this being done, how barefacedly unjust would it be still to compel the lender to pay it? or indeed to pay any tax at all for the money lent? Surely there is not a man of sense and justice, but what would blush at the attempt.
4thly. I object to the measure on account of the present great de- preciation of cash. Whatever money might have been heretofore, it is certainly now so fallen in value, as to be utterly unable to bear a tax. Great numbers of the inhabitants of this state, who depend chiefly upon the interest of their money for support, know not, at this hour, which way to get bread to eat, and cloaths to wear. And shall govern- ment add to their distress, by saddling them with a burden equally oppressive and unpresidented : A burden not only unjust in its nature, but which they are by no means able to bear? Those indeed who have money at interest, and yet are in some kind of profitable business, as farmers, merchants, mechanicks, &c. may perhaps, from the great gain they derive from their respective employments, be able to bear the tax with some degree of ease; but among those who may more properly be called the monied part of the community, from their being chiefly supported by the interest of their money, I believe there are but few, very few, but what would feel it as a grievous oppression. If when every hundred pounds they had would bring them seven per cent per annum, and the necessaries of life were not half as dear as they now are, they could but just bring the year about ; it is easy to conceive, that they must now be reduced to the greatest difficulty, and that a small additional burden would be exceedingly hard to bear. And that there are great numbers in such a situation cannot be doubted. Nor can it be doubted, by any who have the feelings of humanity, or are endowed with the common principles of justice, but that their case
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demands relief from government, rather than oppression. Especially when we consider, that many among them are covered with grey hairs-are persons who have spent the prime of their days in the virtuous discharge of their several duties, as christians and fellow citizens : that many among them are widows, with large families of children, who they are endeavouring to bring up in a decent and reputable way, in order to render them useful and honourable members of society.
Are not the monied part of the community, from the nature of the times, likely to be sufficiently injured, without the assistance of gov- ernment? Are we not alarmed at the amazing fall of cash? Had A, for instance, sold B three horses two years ago, at thirty pounds a-piece, and taken his bond for the money, payable at this time; one of these horses, according to the general rise of things (or fall of cash which is the same thing) would now completely pay that debt. And shall A, out of the interest of this poor pittance, be obliged to pay tax to ease B's pocket and the pockets of others, who are in like manner taking advantage of the times, and raising estates out of the ruins of their neighbours? Is it not sufficient that individuals are thus en- deavouring to ruin individuals? Or would it really redound to the honour of government, to have a hand in completing the iniquity?
Here, perhaps you will say, that as continental loan-offices are now open, and as the certificates bear an interest of six per cent per an- num, were they to be exempted from taxes, as proposed by some, the monied part of the community might turn their cash into that channel, and not only escape the tax, but, in a great degree, relieve themselves from the losses and distresses I have mentiond. But then you will consider, that this remedy would be exceedingly partial ; to say noth- ing of the total uncertainty of its continuance. It is not to be sup- posed that one tenth, nor perhaps a twentieth part of those who depend upon the interest of their money for their living, and who are well affected to the government, would, or indeed could, without great inconvenience, have recourse to it. And those that would be most likely to avail themselves of the privilege, are generally such as stand least in need of it. The more particular defects of the remedy how- ever, it might perhaps, at this time, be improper to set forth. I shall therefore dismiss the subject for the present.
It is said by some, that a law for taxing bonds and bills would be popular. And perhaps it might. But then would not a law for dividing the wealth of the state equally among the inhabitants, be full as popular, or perhaps more so? Only set the thought on foot, and take a little pains to blow it about, and you will soon have legions of advocates for it. An estate of one hundred thousand pounds, would make a hundred beggars smack their lips. This would be levelling with a witness. But then however popular it might be, I dare say numbers of those who would fain support the former scheme on its popular ground, would instantly reprobate the argument, was it to be advanced in favour of the latter. The former is levelled at one part of the community-the latter would be levelled at another also ; which, you know, might make great odds.
With regard to the real merit of the two schemes, it may perhaps be hard to determine which would excel. As levying a two-fold tax
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on one part of the property of the state, and not on the other, would have an appearance of great partiality ; some perhaps, who value an equal administration, would think the former least entitled to merit ; others, apprehending they should lose most by a division of estates, would probably judge the latter to be least meritorious. This, how- ever, may be said in favour of the latter, that the former will not bear; it would, for a time, relieve the state from paupers.
But however absurd taxing money at interest (as it is termed) may appear when fully considered, there is something in it, that at first view seems very plausible. Hence some well-meaning men, who have considered the matter too superficially, are warm advocates for the measure. And the arguments commonly advanced in support of it, are well calculated to take with the populace-to mislead the unwary and inconsiderate part of the people : who are usually well pleased with a scheme or an argument, provided it has one fair side.
In the course of our debates upon this subject, I have heard it said to be unjust that any one man, who has three times the income of another, should pay less tax than that other pays. And did he who has that largest income, possess the property out of which it rises, the remark would be just : but when that property is in the hands of others, as farms leased, and money let, and there pays tax, the case is evidently otherwise. A man may have property in the hands of other people, to the amount of a million, and the possessor of that property may have it on such easy terms, that they can better afford to pay for it than the proprietor. In which case, although the proprietor should draw from those who possess his property, ten thou- sand pounds per annum, and pay no other than a common poll-tax, there would not be even the shadow of injustice in it. He having enabled the possessors of his property to pay tax for it in his stead, their paying the tax must be evidently just; and was he to be taxed for it also, or for its value, that would be as evidently unjust. It might, however, gratify those amongst us who behold their superiors in life with an envious eye, and right or wrong, would gladly drag them down to a level with themselves. But this levelling spirit should never be indulged. It is always dangerous in civil society-always destructive of order and government.
Were all men so generous as to let their money on the easy terms I have mentioned, there would be no need of laws for regulating of interest. Every lender of money would be so moderate in his demands, as to enable the borrower to pay tax for the property whilst it re- mained in his hands. But as mankind in general are more influenced by the love of gain, than by any feelings of generosity, or principles of justice, were they left to bargain for themselves, with regard for the interest they should receive, many would exceed that moderation which I have mentioned. Laws were therefore found to be necessary to check their demands, and keep them within the bounds of equity and justice. And if the laws of this state, as they now stand, allow the lenders of money too great a latitude, let them be altered. If an interest of seven per cent per annum is too high, let it, as I said before, be reduced. But let it never be said, that New-Jersey has a law for peeping into old womens drawers and caskets, to discover the frivolous amount of their bonds and bills.
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Thus, in obedience to your command, I have sent you a few of my thoughts respecting our new scheme : and I wish I had had a little more leisure, that I might have done the subject more justice, and sent you them thoughts in a little better dress. Your good judgment, however, will enable you to take up the hints I have dropt, and, at your leisure, pursue the arguments to their fullest extent; and I am sure your good nature, will readily excuse any defect on my part.
I remain with the greatest esteem, &c.
P. S. If once in judgment sir yo've err'd : If others once yo've taught to stray ; 'Twill learn you how to feel for those Who judge at random ev'ry day.
But from that error now recede : 'Tis great-'tis good to own a fault :
Returning sinners grace obtain ; And candour does the mind exalt.
'Tis grov'ling souls alone that spurn Conviction and resolve to stray ;
That sullen on in error press, When truth unfolds a better way.
The noble mind with doubts oppress'd, Exults and glories in relief ; Joyous steps from wrong to right, And thanks you for the new belief.
But why those hints? your mind disdains A thought so guilty and so low, As not to catch truth on the wing, Whether she came from friend or foe.
Peace to all such, and wisdom too : And may my soul with theirs unite, Explore the ways from error free, And easy move from wrong to right.
January 9, 1778.
Mr. PRINTER
ANY hint or improvement in agriculture, ought to be communicated to the publick, especially at the time of this unhappy struggle, when necessity will, if inclination don't, urge each individual to œeconomy and industry-the grand article of the culture of flax at this juncture, de- serves a particular attention- I last season made the following experiment, having often heard of a second
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crop of flax, that is, to sow the same ground over again with flax-seed as soon as the first crop is taken off .- I was of an opinion, that it would answer then, it was highly probable it would do three weeks or a month sooner .- I had about two acres of common pasture land, ploughed and intended for wheat; one half I had cross- ploughed and well harrowed, the other was only harrowed, on which I sowed the seed pretty thick the last week in June, and in ten weeks from the time of sowing, I had the flax pulled, spread and sufficiently rotted for dressing ; the flax, according to the opinion of good judges, was well linted and very soft; and that there will be at least an hundred and forty weight of flax from the two bushels of seed, which I account as so much clear gain, having a tolerable good crop put in at the usual time, and a lucky shift for any farmer, whose early sown flax may be cut short by the frost or any other accident. Yours, &c. A Farmer of Middlesex, South Rariton.1
1 This experiment unquestionably grew out of the action taken by the Somerset County Committee of Correspondence, at their meeting in Hills- borough, February 14th, 1776. President John Witherspoon, of the College of New Jersey (now Princeton University). was chairman upon this occa- sion, when, for the purpose of benefiting the "inland Trade" of Somerset county, the following was declared to be the fundamental principle of action : "That whatever will make it easy for every Person, old or young, rich or poor, to do a little and immediately to turn that little to their own Advantage as well as throw it into the Public Service. must have the most immediate and powerful Influence."
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