Post-Revolutionary War to Civil War
1865 Treasury Department Circular that Canal Boats Doing Business With Indian Tribes Are Exempt From Taxes
May 10, 1865-Dated, Printed Circular of the United States Treasury Department, 4 pages, measuring 10" x 8", relating to Canal Boats and related Tariffs and Taxes, also mentioning the "Indian Tribes", Very Fine.
Circular Letter from the Secretary of the Treasury Hugh McCulloch, issued just weeks after the assassination of President Abraham Lincoln and the surrender of the Army of Northern Virginia.
This Circular regards the payment of tonnage tax by Canal boats. This Circular Letter includes a reprinting of a May 10, 1865, letter from Secretary McCulloch to Hollis White, a Special Agent of the Treasury Department. McCulloch's letter made clear that all canal boats were subject to license and tonnage taxes unless they were operated on very specific waterways unconnected with other states by rivers or lakes on which trade with other nations took place. The recipient of this copy was Charles Almy, the collector of the port of Fall River, Massachusetts.
The importance of this Circular Letter is due to the specific "Exemption from Tax" on canal boats doing business with Indian Tribes, thus removing any impediment to trade between commercial interests, and those of the Native American Tribes. Includes a handwritten note in the upper left margin, "Recd May 20th 1865." Pinholes in left margin from a previous binding; some small stains. Excerpt: "The following letter relative to the liability of canal boats to the payment of tonnage tax, is published for the information and direction of Officers of the Customs."
Hugh McCulloch to Hollis White, May 10, 1865:
"This Department has, since the passage of the tariff act of July 14, 1862, repeatedly ruled, that the provisions of the coasting laws touching these subjects apply to all canal boats, excepting only those 'plying on waters exclusively within the limits of a State, and having no outlet into a navigable river or lake on which commerce with foreign nations, or among the States, or with Indian tribes, can be carried on.' This view seems to me to be clearly in accordance with the laws of Congress, and the uniform decisions of the Department upon the subject, from the earliest existence of canals in this country."
"That Congress intended that the term 'vessel,' as used in these statutes, should include water craft of every description, and even 'rafts,'..." "I repeat then, that with the exception set forth in the second paragraph of this letter, all canal boats of not less than five tons burden are subject to admeasurement, enrolment and license, or license, and the payment of tonnage tax; but that officers of the customs have no right to exact fees or other compensation for any services appertaining to such admeasurement, enrolment or license. "A faithful compliance with these instructions will be required, and you will report to me any neglect or violation which may come to your knowledge."
Hugh McCulloch (1808-1895) was born in Maine and attended Bowdoin College. After studying law in Boston, he began a practice in Fort Wayne, Indiana, in 1833. He worked as a cashier and manager in the Bank of Indiana and eventually served as president of it and its successor from 1835 to 1863.
McCulloch served as the first Comptroller of the Currency from 1863 to 1865. President Lincoln appointed him as Secretary of the Treasury in March 1865, and he held that position until the end of President Johnson's administration in March 1869.
After he left office, he spent six years in England as a member of a banking firm. McCulloch again served as Secretary of the Treasury at the end of President Chester A. Arthur's term from October 1884 to March 1885.
Charles Almy (1819-1886) was born in Rhode Island and began teaching school at age 17. He later opened a country store but soon moved to Boston, where he became an auction and commission merchant.
He participated in the business of whaling in New Bedford, Massachusetts, until the Civil War. He served as Collector of Customs at Fall River, Massachusetts, from 1861 to 1865. He joined the insurance business in 1864 and continued in that work until his death. Originally a Democrat, he became a Free Soiler in 1848 and then a Republican. In 1880, 1881, and 1882, he was the Prohibition Party candidate for Governor.