The Federalist Papers, Federalist No. 12 summary
Federalist No. 12 of 85 · 8 min to read the paper
In Federalist No. 12, Hamilton argues that Union increases revenue by strengthening commerce and making import duties easier and cheaper to collect. He contrasts a shared coastline with porous borders between separate States, then warns that inadequate commercial revenue places oppressive burdens on landowners without meeting the government's needs.
What happens
- Hamilton argues that commerce supports agriculture, increases circulating money, and makes taxes easier to pay.
- He presents direct taxation as ineffective and identifies import duties as America's chief practical source of revenue.
- Separate States invite smuggling across internal borders, while Union allows coordinated enforcement along the Atlantic coast.
- He argues that national collection permits higher duties at lower cost and estimates substantial revenue from imported spirits.
- He warns that neglecting commercial revenue burdens landowners and threatens national independence, finances, and security.
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In this paper
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Why does Hamilton think Union makes import duties easier to collect?
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