Sec.2.  The general government is a government of delegated powers; that is, powers which have been intrusted or delegated to it by the states, or the people of the states.  Having derived its powers from the states, or the people, it has such powers only as have been conferred by the constitution.  Hence it is called a government of limited powers.  The states, on the other hand, existing before the general government, and possessing entire sovereignty or supreme power, may exercise all powers which they have not surrendered to the general government.  In other words, their powers are unlimited, except so far as they have parted with any of their original powers.

Sec.3.  Most of the powers of congress are enumerated in the eighth section of the first article of the constitution.  The first in the list is in these words:  “Congress shall have power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts, and excises shall be uniform throughout the U. States.”

Sec.4.  We have already noticed the want of such a power in the old congress.  The debt which had been contracted to carry on the war remained unpaid; and congress, as we have seen, had no power to raise money either to pay debts or to defray the current expenses of the government. (Chap.  XXVII:  Sec.4, 6.) It could neither raise money by direct taxation; that is, by taxing the persons and property of the citizens, nor by indirect taxation, which is by duties.

Sec.5. Duties, or customs, are taxes on goods imported from, or exported to, a foreign country. Imposts are taxes on imported goods only.  Duties on exports, however, being deemed inexpedient, are not laid by our government.  An excise is a tax neither on imports nor exports, but on articles produced and consumed in the country, and on licenses to deal in certain commodities.  The money paid for license to sell spirituous liquors is an excise tax.

Sec.6.  Duties are specific and ad valorem.  A specific duty is a specified sum of money charged upon every yard, pound, or gallon of any commodity.  Thus, a duty of ten cents on a pound of tea, or of one dollar on a yard of cloth, or of fifty cents on a gallon of wine, is a specific duty. Ad valorem is a Latin phrase, signifying according to the value.  An ad valorem duty is a certain per centage on the value or price.  Thus, thirty per cent, on a yard of cloth costing two dollars, is sixty cents; on a yard costing three dollars, ninety cents; the sum charged being varied by the difference in the price or value.