Several evidences examined, principally merchants at Halifax, Manchester, and other trading towns in England. After this, Dr. Franklin was examined some time before I came in.

That he recollected before 1763 that the persons in Philadelphia had made a distinction between internal taxes and duties, particularly at time when a proposal was made for committee from assembly to meet and consider of the proportion to be raised by each particular colony; the general conclusion was that the Parliament would not lay internal taxes upon them because it was not right nor constitutional.

That he never supposed a case where the assembly would not raise supply for the support of their own government. Dyson said that he knew there was the case where this had happened and the assemblies were only obliged to it by being threatened with an Act of Parliament to tax them if they did not tax themselves.

That before their old clothes are worn out they will have new clothes of their own making.

That there is a distinction between internal and external taxes, that a man is left to his option more in paying one than the other. That the Americans have agreed to eat no lamb last year, which will increase the quantity of wool in that country very considerably. He thinks in three years there might be a quantity of wool raised in America sufficient to clothe all those who want clothing.

That the Americans will think the resolution of both Houses unconstitutional but yet would be satisfied with a repeal of the Stamp Act because they would then consider themselves as in the case of Ireland over whom the Parliament has asserted that power but has never thought fit to exercise it.

That he has heard of Maryland expressing an unwillingness upon a difference with their Governor to put a sum of money sufficient to raise their quota of troops for the war, and for one or two years did not contribute, but that the other provinces did contribute more than their proportion to make up that deficiency. And at this time there was a conversation among the other provinces that Maryland ought to be forced by Act of Parliament to contribute to the common expenses.

That Governor Hutchinson was the promoter of a law restraining paper currency. That it was then a very unpopular law, but that it has become now much less so.

That the Americans in general never disputed the controlling power of this Kingdom to regulate their trade.

That he thinks the Stamp Act cannot be carried into execution, either with or without a military force. For if a military force was to be sent there, it would find nobody there in arms, but you cannot force them to take stamps if they refuse it.

That in a few years they would be able to do without our manufactures. That the manufactures they take from us are of three sorts: necessaries, conveniences and superfluities, which last are much the greatest proportion. That they have already struck off many superfluities and will strike off more, and are raising some necessaries of life as fast as possible.

That regulation attended with an internal tax would be objected to. That the Post Office is not so much a tax as a regulation, as it compels no person to send letters by it, as he may send it by a private messenger.

That they would not object to duty laid upon importation as considering the sea as belonging to Great Britain, and anything passing that sea would be subject to Great Britain. They would object to duty upon exportation if it lay hard upon their commerce and prevent sale in foreign parts, but they might object by expediency without calling the right into question.

Ellis mentions several instances of duties upon exportation, particularly that upon tobacco exported coastwise of a penny per pound.

That the people of the West Indies have in his opinion the same rights as the people of N. America.

That there is a poll tax in Pennsylvania of 15 shillings per head upon every man unmarried above 21 years age. The poll tax and the tax upon land raise about £30,000 in Pennsylvania money and £20,000 in sterling.

That if the inhabitants are dissatisfied with this country, they will use worse manufactures of their own, though dearer than the English, as they would pay as much to gratify one passion as another, to gratify their resentment as readily as to feed their pride or their vanity.

That they have at present an administration of justice in criminal matters and would do without them in civil matters till they can find a remedy.

That as the principal distributors have resigned their offices who would have the greatest profits, it is not probable that any sub-distributor would undertake.

That in his own opinion he should sooner trust to debt of honour than take the stamps, and he believes this would be the general practice. That he believes it would require a great force to be distributed about the country for the protection of the stamps and stamp officers.

That gentlemen may in time by abolishing distinction between internal and external taxes teach them to change their own present opinion and abolish it likewise. By the word taxes they have always considered internal taxes only, and when they mean external taxes they use the word duties. By the word impositions are meant internal taxes or other charges such as billeting men.