President Washington Sends the First Major Law Passed by Congress, the Tariff Act of 1789

"I now forward An Act for laying a duty on Goods, Wares & Merchandizes imported into the United States..."

New York, July 9, 1789. Single sheet, 12 1/2 x 8 in. (318 x 203 mm). One-page manuscript letter in a secretarial hand (possibly Washington's secretary Tobias Lear), signed by President George Washington to Maryland Governor John Eager Howard, transmitting the Tariff Act of 1789. In full: "Agreeably to a Resolution of Congress which I had the honor to transmit to your Excellency on the 8th of June, I now forward An Act for laying a duty on Goods, Wares & Merchandizes imported into the United States, and have the honor to be, With due consideration, Your Excellency's Most Obedient & Most Humble Servant G: Washington". Docketed on verso. Professionally silked; creasing from old folds, a few small separations along same now expertly restored; scattered light foxing; In mat and double-pane glass frame.

Two months into his term as the first President of the United States, George Washington transmits the first major piece of legislation passed by Congress: the Tariff Act of 1789.

When Washington was inaugurated, and the newly ratified Constitution took effect on March 4, 1789, the current structure of the U.S. government did not immediately come into existence. The arduous process of laying out the federal system would begin under Washington, as well as the setting of precedents that would guide future administrations. In Washington's first 100 days as President, he carefully navigated the stipulations of the Constitution, along with Congress, and established the executive department, appointed cabinet members, federal and Supreme Court judges, etc.

One issue on which the executive and legislative branches fully agreed upon was the need for a federal stream of revenue, and the most obvious course to achieve this was by a nationally enforced tariff on foreign imports. In 1783, Congress attempted to institute such an impost, but it failed due to the unanimity needed from all states under the Articles of Confederation. By 1789, the United States Treasury was in desperate need of funds in order to establish the country as a new international power, as well as to begin paying off the ever-growing debts incurred during the American Revolution. This urgency is evidenced by the Tariff Act of 1789 being the first piece of legislation introduced to Congress by James Madison after the body had been officially convened.

Madison recycled two main features from the 1783 impost bill for this new act: a 5% ad valorem tax on all imports, and a list of articles to be taxed at special rates (such as rum, wine, tea, molasses, etc.) He hoped that by using the same structure that most states agreed to years before, it would ensure its swift adoption. This proved to not be the case, as most of the country's primary exports had changed in the intervening years, which led to debate about what items should be given special status and the rates at which they should be taxed. Additionally, some states already had instituted import duties in major Atlantic port cities to help with their own state debts.

The disagreements in Congress took on a roughly geographical division, with many from northern states favoring high taxes on imports to protect their industries, while those from southern states advocated low taxes to allow for cheaper consumer goods from abroad. Madison himself wished to include a provision in the bill on tonnage, that would have discriminated especially against British commerce, but in the end it was removed due to contestation from the Senate. That was passed as a separate piece of legislation, on July 20 (The Tonnage Act of 1789).

After many debates, amendments, and concessions made by both houses of Congress, the Tariff Act of 1789 was officially passed and commemoratively signed into law by President Washington on July 4, 1789. In less than a year, the Treasury Department under Alexander Hamilton deemed the tax rates of the initial bill unsustainable, which caused Congress to revisit the issue and pass an amended version in 1790. These import duties, and subsequent commerce laws passed during Washington's first term, would constitute the bulk of all U.S. federal revenue until as late as the early twentieth century.

Since the Tariff Act was the first major law passed under the new United States Constitution, it then had to be shared with states across the country. At the time there was no formal system for federal legislation to be disseminated to state governments or their executives, which is why President Washington personally transmits the new law to Maryland Governor John Howard. Washington continued this personal practice of sending legislation to governors until early 1790, when Thomas Jefferson assumed the role of Secretary of State, and took over that responsibility.

According to online records, this is only the fourth example of this kind of transmittal letter signed by Washington to come to auction, the other three having sold in 1994 (to Governor George Walton of Georgia), 1993 (to Governor Samuel Huntington of Connecticut) and in 1985 and 2007 (to Governor Beverly Randolph of Virginia).

An extremely rare and historically significant George Washington letter.