Mr. Seward to Mr. Marsh.
Sir: Your despatch No. 166, of the 6th instant, on the subject of the exaction of involuntary loans by the Italian government from citizens of the United States in Italy, has been received. In reply, I have to state that this government makes no compulsory loans in any case, and resorts to no other system than one of general and uniform taxation, by either excise or impost duties, or general and pro rata taxes, based upon valuations of estates uniformly throughout the whole country. The same financial policy characterizes the legislation of the several States. It is believed that no involuntary loan has ever been, or ever will be, required of any Italian subject in any part of this country. Foreigners, as well as our own citizens, are exempt from such loans, or any other character of taxation than that required by our federal and State constitutions. We think, therefore, that in no case could we assent to the imposition of involuntary exactions or loans upon our citizens by the Italian government. We have uniformly disallowed such a measure when it has been proposed by other countries.
A stipulation of reciprocal exemptions, as is proposed, will be seen from the above statement to be unnecessary.
In every case of convention with a foreign state our Constitution requires a formally negotiated treaty, with mutual ratification after the instrument shall have been approved by the Senate.
Negotiation for such a purpose with Italy would be deemed exceptional, and therefore would be likely to fail, as the Senate and Congress would probably insist that no compulsory loan could lawfully be imposed. At the same time the Italian government may rest assured that such loans will not be imposed here upon Italian citizens.
We confidently hope that the effort will not be persisted in by the Italian government in regard to citizens of the United States in Italy. Even a debate upon such a topic would produce alarm and discontent.
I will very soon recur to the subject more at length in connection with the existing treaty between the United States and Italy and the law of nations.
At present it may be remarked that although the treaty with Sardinia of November 26, 1838, contains no stipulation expressly exempting the citizens and subjects of the parties from compulsory loans, the fifth article of the treaty between the United States and the Two Sicilies of the 1st of October, 1855, contains an express renunciation of the right to levy such an impost. It is presumed, therefore, that whatever might be the claim of the Italian government with reference to the territory to which the treaty of Sardinia was restricted, it will not insist upon such a pretension within the territory embraced by the treaty between the United States and the Two Sicilies.
I am, sir, your obedient servant,
George P. Marsh, Esq., &c., &c., &c.