State imposes a tax on goods sold at auction.

The Massachusetts legislature imposes a 1% tax on goods sold at auction, despite complaints by Boston merchants that it will have a devastating effect on the China Trade. Their prediction proves to be correct. Despite the fact that the tax is reduced in 1849 and repealed altogether in 1852, only six ships from China arrive from Boston by 1857 and only 20 of the 41 ships that arrive in New York are Boston-owned.