Front Page Titles (by Subject) 184: SKETCH OF A PLAN OF AMERICAN FINANCE - George Washington: A Collection
The Online Library of Liberty
A project of Liberty Fund, Inc.
Search this Title:
184: SKETCH OF A PLAN OF AMERICAN FINANCE - George Washington, George Washington: A Collection 
George Washington: A Collection, compiled and edited by W.B. Allen (Indianapolis: Liberty Fund, 1988).
About Liberty Fund:
Liberty Fund, Inc. is a private, educational foundation established to encourage the study of the ideal of a society of free and responsible individuals.
The copyright to this edition, in both print and electronic forms, is held by Liberty Fund, Inc.
Fair use statement:
This material is put online to further the educational goals of Liberty Fund, Inc. Unless otherwise stated in the Copyright Information section above, this material may be used freely for educational and academic purposes. It may not be used in any way for profit.
SKETCH OF A PLAN OF AMERICAN FINANCE
[October ? 1789]
Preliminary. Consider all requisitions heretofore made by Congress on the states, as if they had never been made. This gets rid of the adjustment of quotas for the past. The contributions in money, provisions &ca. made by each State to the Union, become a debt from the Union to the respective State, deduct from this all monies advanced to that State by the Union; the balance will constitute the debt of the Union to the State. Let that debt bear an interest of 6 pr Ct. With that interest each state may pay annually the interest of the debts they owe, and the annual expences of their Government. They will then have no occasion for Taxes and consequently may abandon all the subjects of taxation to the Union.
Impost on importsI. Let the Union lay an Impost of 5 pr Cent on Importations. Suppose it worth from 1 1/2 to 2 millions of Dollars. Open a loan in Europe sufficient to pay the foreign debts, and to support the government a year or two. Suppose this to be 12 millions of dollars at 5 pr Cent interest. 600,000 Dollars a year.
Appropriate this Impost
Produce taxII. Lay a direct tax of 1/20 of all produce, payable in kind, but commutable for half its worth in money. Should this produce more than the State’s quota, let the Surplus belong to the State. The State Legislature may then be entrusted with fixing the objects on which it is to fall, their value, the places of delivery, Sale of the produce, conduct of the receivers &ca:
Postages and tax on civil processIII. Postages and a Tax on Civil Process may form a third fund.
The aggregate fund thus formed of the residuary parts of all Taxes.