The Massachusetts and Maine 1798 Direct Tax: An Eighteenth-Century Economic Snapshot

Editor's Note: This article is featured in the Spring 2003 issue of New England Ancestors magazine.

In the summer of 1844 William Henry Montague was appointed a clerk in the Boston Customs House. Up to that time he had been a successful businessman in Boston, operating a succession of dry goods stores and manufactories. Little did he know the significant contributions he would eventually make to the field of genealogy. On the evening of Friday, October 18, 1844, he invited Charles Ewer, Lemuel Shattuck, and J. Wingate Thornton to his home to discuss plans for a society dedicated to preserving memorials of the past. Two weeks later, on November 1, Samuel Gardner Drake joined them at the home of Lemuel Shattuck. On January 7, 1845, the New England Historic Genealogical Society was formally organized. William Henry Montague was chosen first treasurer of the Society.

Montague was born February 29, 1804, in Granby, Massachusetts, to Rev. William and Jane (Little) Montague. His father soon moved the family to Dedham where William was raised. The latter developed a keen sense of history and was devoted to the preservation of history, a trait learned from his father. W. H. inherited much of his father’s collection, including a bullet taken from the body of Dr. Joseph Warren at the Battle of Bunker Hill. During his travels, W. H. Montague acquired many additional items, a number of which he eventually donated to the Society (including the bullet from Dr. Warren, given in 1884).

William Henry Montague maintained his passion for the past throughout his life. In addition to items donated to the Society, his collected Montague data to 1850 was used as the basis for a massive volume on the family published in 1886. By the end of the Civil War, Montague unfortunately lost his sight completely, which severely hampered — but did not end — his historical pursuits.

One brisk morning Montague arrived at work at the Customs House very early and came upon the janitor preparing to light fires for the day in the offices. The paper the janitor was using to light the kindling caught Montague’s attention, and he picked up several sheets. Upon closer examination, and to his great dismay, he determined that they were actually pages from the returns of the United States Direct Tax of 1798 for the Commonwealth of Massachusetts (which at that time included the state of Maine). He asked the janitor where the paper had come from and was directed to a large pile of it stacked in a corner. Montague ordered that no more be destroyed and set about developing a plan for its safekeeping.

On December 31, 1850, the surviving pages of the Massachusetts and Maine 1798 Direct Tax were delivered to the New England Historic Genealogical Society to ensure their safekeeping and continued survival. The Society immediately raised funds to organize the material. John Ward Dean carefully sifted through the papers, arranged them, and bound them in twenty folio volumes. These volumes were placed in the Society’s manuscript collection, where they remain to this day.

In 1979 the Society received a generous grant from the National Endowment for the Humanities to increase access and preservation of its manuscript collections. As part of this grant, the 1798 Massachusetts and Maine Direct Tax was microfilmed. The eighteen reels have since been heavily used at many repositories by both genealogists and historians. They are available through both the NEHGS Research and Circulating Libraries. Now, almost a quarter century later, NEHGS is proud to announce an electronic version, available only to our members on NewEnglandAncestors.org.

The history of the 1798 Direct Tax

The tax, like many political matters, has an interesting history. After the close of the American Revolution there were ongoing difficulties with Great Britain. When in 1794 British vessels began seizing American ships involved in trade with France and the French West Indies, a renewed war seemed imminent. In April, President George Washington appointed the Chief Justice of the Supreme Court, John Jay, as a special envoy to negotiate a treaty with Great Britain.

Many other issues were at stake, including settlements in the Old Northwest. The new treaty called for the British to depart this area by June 1, 1796. Those settlers who were permanent residents could choose to become American citizens or retain their status as British subjects. The boundaries between the two countries were refined. Free trade was established between the United States and British North America. British ships were granted most-favored nation status in American ports. Free navigation was provided for the Mississippi River and the British East Indies. However, there were severe and embarrassing restrictions on American trade with the British West Indies. For example, there was no guarantee protecting American sailors from impressment into the British navy. And no provision was made for individuals whose slaves were taken by the British during their armies’ departure.

The treaty was signed by Jay and Lord Grenville (William Wyndham Grenville, 1st Baron Grenville of Wotton-under-Bernewood, 1759–1834, British Foreign Secretary, 1791–1801) in November 1794. There was much public outcry in the United States at the news of the treaty. Many felt it was a complete surrender to the British, despite Britain’s ongoing violations of the Treaty of Paris of 1783. The new treaty was submitted to the Senate on June 8, 1795, and ratified on June 24 after much rancorous debate. It was declared law in February 1796.

In 1797, France was in the midst of an intense war with Great Britain. Although France had been a key ally of the colonies during the American Revolution, Franco-American relations deteriorated greatly after the onset of the French Revolution in 1789. Congress created the U.S. Navy in 1794 after pirates in the Mediterranean Sea created tremendous difficulties for American trading ships. The fledgling navy had its first major test during the Quasi-War with France between 1797 and 1801.

The government of France was greatly upset by the treaty. George Washington sent Charles Cotesworth Pinckney to Paris as a conciliatory gesture in 1796, but he was quickly rebuffed and forced to leave the country. Upon his assumption of the presidency in 1797, John Adams sent a commission to Paris to negotiate a treaty of commerce in an effort to defuse the situation. Pinckney was this time joined by John Marshall and Elbridge Gerry. They arrived in October and soon met unofficially with the French foreign minister, Charles Maurice de Talleyrand-Périgord (1754–1838).

While waiting for a second meeting, the three were approached privately by three of Talleyrand’s agents: Jean Conrad Hottinguer, a Mr. Bellamy, and Lucien Hauteval. Hottinguer and Hauteval were Swiss, but Bellamy was an American businessman living in Hamburg. They demanded a bribe of $250,000 for Talleyrand, an exorbitant official loan from the American government, and an apology from John Adams for comments he made about France in a speech. The Americans refused the demands, but offered to provide France with the same terms they had given Britain under Jay’s treaty. Talleyrand attempted to split the delegation by proposing to deal only with Elbridge Gerry, declaring the others opposed to France’s concerns. Consequently, the American commissioners ended their attempts to negotiate with the French government.

On March 19, John Adams submitted a report to Congress on the tribulations of the commissioners in Paris, submitting the full commission’s report two weeks later. In his report, Adams referred to Hottinguer, Bellamy, and Hauteval as Misters X, Y, and Z.

Americans were outraged at what came to be known as the X, Y, Z Affair. From every corner of the country came calls for a declaration of war between the two countries. Congress authorized the capture of French warships, voided the 1778 alliance, and terminated all commercial dealings with France. George Washington was recalled to take charge of the American Army.

It was in this atmosphere, charged with hostility, that Congress passed two pieces of legislation in July 1798. On July 9 an act was passed providing for the valuation of lands and dwelling houses, and the enumeration of slaves within the United States. Five days later, on July 14, another act was passed to lay and collect a direct tax within the United States. The monies collected from this tax were designated to help arm the country for an impending war with France.

The tax assessment

Maine did not become a state until 1820. In 1798 it was still a district of the state of Massachusetts. It was comprised of five counties: Cumberland, Hancock, Lincoln, Washington, and York. What is today the state of Massachusetts was comprised of twelve counties: Barnstable, Berkshire, Bristol, Dukes, Essex, Hampshire, Middlesex, Nantucket, Norfolk, Plymouth, Suffolk, and Worcester.

According to the valuation law of July 9, the state of Massachusetts was to be divided into nine sections as follows: Division 1, containing Hancock, Lincoln, and Washington Counties [present-day Maine]; Division 2, Cumberland and York Counties [present-day Maine]; Division 3, Essex County; Division 4, Norfolk and Suffolk Counties; Division 5, Middlesex County; Division 6, Barnstable, Bristol, Dukes, Nantucket, and Plymouth Counties; Division 7, Worcester County; Division 8, Hampshire County; Division 9, Berkshire County.

Each division was to have one resident appointed by the Senate to be commissioner for that division and to enact the provisions of the law. The commissioners of each state were to meet, create rules, and act as a board to enforce the provisions of the law. The commissioners were empowered to divide their states into a suitable and convenient number of assessment districts. Each district would have a resident appointed by the commissioners to be the principal assessor. Any number of other residents could be appointed as assistant assessors in order to carry out the responsibilities of the law. The Secretary of the Treasury had veto power over the number of assessors if he felt there were too many.

Section 8 of the act states the following concerning the functions of the assessors:

. . . the said commissioners shall, jointly or severally, direct and cause the said assessors, and each of them, to enquire after and concerning all lands, dwelling houses and slaves in their respective assessment districts, by reference to any records or documents, and to any lists of assessment taken under the laws of their respective states, and by all other lawful ways and means; and to value and enumerate the said dwelling houses, lands and slaves in the manner following, to wit: Every dwelling house above the value of one hundred dollars, with their appurtenances, are erected as aforesaid, shall be valued by the quantity, either in acres, or square feet, as the case may be, at the average rate which each separate and entire tract or lot is worth in money, in a due relation to other lands and lots, and with reference to all advantages, either of soil or situation, and to all buildings and other improvements of whatever kind, except dwelling houses above the value of one hundred dollars, and the out houses appurtenant thereto. And all slaves, whether negroes, mullatoes, or mestizoes, above the age of twelve, and under the age of fifty years, shall be enumerated in the assessment district in which they may, respectively, be kept or employed, at the time of the enumeration, except such as fixed from infirmity, or bodily disability, may be incapable of labor: Provided, That all property of whatever kind, coming with any of the foregoing descriptions; and belonging to the United States, or any state, or permanently exempted from taxation by the laws of the state wherein the same may be situated or possessed, shall be exempted from the aforesaid valuation and enumeration.

The assessors were to obtain written lists from all those owning, possessing, or having the care or management of dwelling houses, lands, or slaves in their districts. The first list was to contain the dwelling houses; the second, the lands; and the third, all slaves. The dwelling house list contained information on the situation of the dwelling houses; their dimensions or area; the number of stories; the number and dimensions of their windows; the materials of which they were constructed (wood, brick, stone, etc.); the number, description, and dimensions of the outhouses appurtenant to them; and the names of their owners or occupants. The land list contained the quantity of each separate lot or tract of land; description and dimensions of all wharves and buildings thereon (except for the dwelling houses above the value of one hundred dollars and their out houses); the name of the owner or occupant; and the quantity of land which such owner or occupant may claim, as entitled to exemption under the act with the circumstances under which the individual was claming exemption. The slave list specifed the number of slaves over the age of twelve and under the age of fifty owned or under the care of each person.

The lists were to be compiled with reference to all ownership and occupancy on October 1, 1798. If individuals were not home, the assessor was to leave a message demanding the lists within ten days of his visit. If anyone refused to provide the information required, the assessor was empowered to enter the premises and create his own list. Such individuals were also liable to pay a one hundred dollar fine, as well as court costs.

From these lists each district was to assemble three alphabetized master valuation lists for the entire district. Immediately after the valuations and enumerations were compiled they were to be publicly posted in at least four public places in each district. Individuals were given fifteen days to appeal any of the information recorded.

The principal assessor was paid $1.50 for every day he was employed in collecting and arranging the lists and making the enumerations and valuations. Assistant assessors were paid $1.50 for every day they were employed in collecting lists and $1 for every day spent arranging the lists.

Under the taxation act of July 14, the state of Massachusetts was responsible for collecting a tax of $260,435.31 and two mills. A mill is an old unit of currency equal to one tenth of one cent. The rate of taxation is shown in the sidebar on this page.

The amount raised from dwelling houses and slaves was deducted from the total amount due from each state. The balance of the taxes due was to be raised by apportioning that amount among the owners of land without structures in the state. Lists were to be created by the surveyors of the revenue containing the name of the proprietor or occupant of each dwelling house, tract, or lot of land and slave or the person having care of such property and the whole amount due, detailing the amount for dwelling houses, land, and slaves separately.

The lists held at NEHGS are primarily the valuation lists, although some tax lists are included. The valuation lists show the value of the property, while the tax lists show the amount of tax to be paid for the property. They have survived remarkably well, considering their sojourn in the Boston Customs House. Unfortunately, some of the towns — mostly in Maine — were burned prior to Montague’s discovery. The following towns are missing from the collection and presumed lost to the fires at the Customs House: Medway and Medfield, Norfolk County; Duxbury and Marshfield, Plymouth County; Buckstown, Bluehill, Prospect, Penobscot, Orrington, Mount Desert, Eden, Hampden, Frankfort, and Bangor, Hancock County, Maine; Hebron, Cumberland County, Maine; New Milford, Dresden, Lewiston, Greene, Monmouth, Union, Litchfield, Pownalborough, Woolwich, Georgetown, Bath, Boothbay, Thomaston, New Castle, Warren, Edgecomb, Cushing, and Ballstown, Lincoln County, Maine.

William Henry Montague died in Boston on May 15, 1889 — the last surviving founder of the New England Historic Genealogical Society. He was laid to rest in the family plot at Mount Auburn Cemetery in Cambridge. His interest in preserving history resulted in the availability of numerous materials to researchers today, none more important than the 1798 Massachusetts and Maine Direct Tax.