Summary of Grant of Power to Collect Import Duties (3 February 1781)

The document, dated 3 February 1781, is a resolution by the Continental Congress during the American Revolutionary War. It recommends that the states give Congress a Grant of Power to Collect Import Duties of 5% on all foreign goods imported into the United States after 1 May 1781, with exceptions for war-related items like arms, ammunition, clothing, and specific goods such as salt. It also proposes a 5% duty on prize goods condemned in state courts. The revenue would be used solely to pay the principal and interest on debts incurred by the United States to support the war, continuing until these debts are fully repaid.

Impetus

The resolution arose from the pressing need for a reliable revenue source to fund the war and manage growing debts. Under the Articles of Confederation, Congress lacked taxation powers and depended on inconsistent state contributions, making this measure a vital attempt to secure direct financial support amidst a worsening fiscal crisis.

Origins

The proposal stemmed from the financial difficulties of the Continental Congress, exacerbated by a depreciating currency and inability to meet war expenses. By 1781, the need for a stable income source led to the idea of import duties, a practical solution within the constraints of Congress’s limited authority.

Process

The resolution calls on states to voluntarily vest Congress with the power to collect these duties, reflecting the decentralized governance structure of the Articles of Confederation. This required states to cede some sovereignty to the central government, a politically delicate step given the era’s emphasis on state autonomy.

Implications

• Financial: If enacted, the duties would provide Congress with a direct revenue stream, reducing reliance on state requisitions.
• Political: It marked an early effort to bolster federal authority, hinting at future debates over federalism.
• Economic: The duties might influence trade patterns, potentially boosting domestic production.
• Legal: The resolution’s detailed exceptions and scope demonstrate careful consideration of taxation and trade frameworks.

This resolution underscores the early United States’ struggle to finance a war under a weak central government and the tension between state and federal powers.