OBSERVATIONS ON THE AGRICULTURE, MANUFACTURES, AND COMMERCE OF THE UNITED STATES.
I AM very sensible that in communicating my sentiments on the policy of the United States, I expose myself to the censure of many; particularly those who are appointed by the people to superintend the political interest of the nation. This idea forcibly strikes my mind. I see the impropriety of wandering out of the road which Providence hath assigned me, and stepping into that allotted to more conspicuous characters. I feel myself also inadequate to the task of writing judiciously on the subject, and I already anticipate the mortification of finding my views and performance reprobated.
But notwithstanding these forbidding circumstances, I have determined to communicate my reflections on this subject, and that for the following reasons: 1st, Because the welfare of the United States ever hath been and now is an object of my warmest wishes and desires, which has produced an irresistable inclination to contribute every thing in my power to promote so great and important an end. 2d, Because, altho' all men are not warranted in taking upon themselves the office of dictators, or powers of legislation; yet, [Page 4]they are encouraged by the general consent of the people, and by the most liberal and judicious maxims, to contribute to the general welfare of the nation, by an unrestrained communication of sentiments and observations. Such an encouragement, which in some respects is peculiar to this country, I look upon as essential to its political interest and happiness; because it supports a general spirit of enquiry and observation among the people, by which means they acquire such a degree of political knowledge, as to be able to distinguish between proper and improper measures of government—to discover errors and propose remedies—to be seasonably alarmed on just occasions, and to be satisfied under a wise and good administration. 3d, Because the interest and happiness of the citizens of the United States will be influenced and immediately affected by the system of revenue and commerce which the national legislature may form and establish; and, as I apprehend, the subject when brought into consideration will be found involved in many difficulties; so, I flatter myself, that the communication of such remarks and observations on the subject as are founded in truth and reason, and written with decency and modesty, will be noticed according to their merit. If those gentlemen who have made the political interest of the United States a subject of reflection and observation, would communicate their result, it appears to me that much advantage might be derived therefrom. It would tend, I conceive, to the forming a system of revenue and commerce in a greater degree of perfection; for, although it is to be presumed that the general Congress will be composed of the most enlightened men in the states, and I trust, I may add, the most patriotic, yet, it is not to be supposed that infinite knowledge or infallible measures will distinguish that from all other public bodies of men. Even this body, I conceive, may draw information from a variety of quarters, and [Page 5]knowledge from many sources. 4th, Because, notwithstanding I entertain no vain idea of my own sagacity or abilities, yet, as light may spring up out of darkness, and a spark be struck from a very unpolished material; so I am encouraged to proceed from a consideration of the possibility of my suggesting something, which, in the hands of wise and judicious men, may be improved to advantage. And 5th, I am the more encouraged to this communication from a further consideration, that in addressing you in particular, I have nothing to fear, being confident that the best and most proper use will be made of it. From the short time in which I have had the honor, as well as the pleasure of being known to you, I am convinced your sentiments and wishes respecting the welfare and prosperity of the United States, are congenial with my own: You will therefore, I doubt not, put a liberal construction on my views, and treat the performance with candor. If you find nothing here worthy of notice, you will not improve it to my disadvantage; if any thing capable of improvement, you will make the best use of it.
With respect to the composition, I could assign many reasons as an apology for the numberless defects which you will discover, but shall omit them: You are probably acquainted with some of them, and will for that reason, I hope, treat the imperfections of the piece with the tenderness of a friend.
Without further explanation or apology, therefore, I will proceed to give you the result of my reflections on the political interest of the United States, and some of the measures which to me appear necessary to promote and secure their welfare; in doing of which I aim at proceeding on original principles, without entangling my mind with the systems and maxims of other nations.
As it is with individuals, so it is with nations in their connections and transactions with one another; [Page 6]the acquisition of property or accumulation of wealth is a grand and principal object; for on the wealth of a nation does its security and the temporal felicity of the people in a great measure depend; and the same measures which an individual doth or ought to take for the accumulation of wealth should be pursued by a nation. In both cases, a dependence on their own resources, and the best improvement of the natural advantages which they may possess, is that alone by which either can hope or expect to succeed.
Despots who have held nations in vassalage, altho' their avarice has been insatiable, have very often overlooked that which would the nearest have come up to their views. They have drained their subjects of their money by oppression; have reduced them to poverty and distress, and at the same time neglected the most proper and necessary measures to have put them into and kept them in a flourishing condition. By this means they have, at times, filled a treasury; but at the expence of those resources and advantages whereby a treasury might be replenished from time to time, as occasions required.
This I conceive always hath been, and always will be the case, more or less, where the views and interest of the government, and those of the people at large, are considered in any degree or respect different and independent of one another. But in free governments, where the views of the legislature and of administration, the interest of the public, and the interest and views of individuals are considered the same, the measures of government do, or ought to aim at the increase of the wealth of the people, rather than at the drawing their property into the public treasury; because, by increasing the riches of the people, or by laying a suitable foundation for a constant accumulation of wealth, an inexhaustible source is provided for national purposes, which can always be applied to as occasions may require, without rendering public demands oppressive and distressing.
[Page 7] The first object therefore to be had in view by government in its system of policy, as it particularly respects property, is, I conceive, the increase of the wealth of the people.
This being premised, I would observe.
First. That there are certain resources and natural advantages which all nations are in the possession of, and certain ways and means by which they may increase their wealth, and in proportion to those resources and advantages may their wealth be increased; but the actual increase of wealth depends on the manner of improvement. A nation, possessing every advantage which it is in the power of nature to endow it with, may nevertheless be embarrassed, poor and dependent; and a nation possessing but few natural advantages, may, by wise and prudent measures, joined with industry and enterprise, become independent and even opulent. Exemplary instances in proof hereof might be adduced. It is therefore, by a judicious improvement of the resources and natural advantages which the United States possess, that they can expect to become opulent or truly independent.
Second. By agriculture, manufactures and commerce, the resources and advantages of a country are improved, and applied in the first place, to the furnishing the people with the means of subsistence and conveniencies of life; and in the next, to the acquisition of property or accumulation of wealth. But as these in their operation and influence may counteract one another and destroy their ultimate intention, it remains with the government or legislative authority of the nation, on whom its welfare depends, to confine these general and common interests, in their operation, in such a manner, as that they may co-operate to answer the end for which they are designed, viz. To promote the general welfare of the nation.
[Page 8] Third. If the riches of a nation may be increased inproportion to its natural advantages and resources, which cannot be disputed, then it may be rationally concluded, that the United States may become more opulent than any other nation; because the resources and advantages which they possess, are greater and more various than any other nation enjoys. The diversity of climate and soil within the limits of the United States, are adapted to the greatest variety of vegetable and animal production of any nation whatever. The earth abounds with the most necessary minerals, and the sea furnishes a great variety and plenty of fish. They have the advantage of an extensive sea coast, and no nation can boast of such inland seas and water communication as the United States.
This country has all the means within itself of furnishing every necessary, convenience and luxury of life, and of carrying on an extensive foreign and domestic commerce; consequently it hath every thing which nature can bestow, to render it opulent and powerful, and the people easy and happy in their circumstances. All that is wanting to produce these effects is to improve the advantages of the country in the best manner and to the most valuable purposes; to encourage industry and the useful arts, and by a judicious system of commerce, so to encourage, protect and regulate the agricultural, manufacturing and commercial interests in their various branches and departments, as to render them mutually subservient to the general weal.
In the prosecution of my design, I shall confine my observations generally to agriculture, manufactures and commerce, and attempt to shew some of the most essential advantages which are to be derived therefrom; the influence which they reciprocally have on each other; the embarrassments they are now under; the measures necessary to remove [Page 9]the impediments in the way of their advancement and prosperity; and in short, a brief sketch of that general plan of regulations which appear to me necessary and proper to advance the wealth and power of the United States, by rendering their agriculture, manufactures and commerce mutually subservient thereunto. And as it will be impossible to consider these as fully as will be necessary, without embracing in the idea a national revenue, so far as it is founded on, and derived from commerce, shall consider them in connection with each other. But before I enter on these, I would introduce two or three prefatory observations.
First. It is a matter which ought to be impressed on the mind of every one, that in any general regulations which may be adopted by the national legislature relative to the general interests of the people, it is impossible equally to regard the interest of every individual; and indeed in some instances it would be improper; because the private interest of individuals, is very often directly opposed to the general interest of the nation.
The interest of the public, or that which is the best calculated to promote the common interest of the nation, is undoubtedly to be regarded in preference to the partial interest of any of its parts, or the private interest of any individual, and that for this reason; because it is impossible to increase the wealth of a nation, let it come in by what door or through whose hands it will; or let it in the first instance benefit whom, or whatever particular parts of the nation it may, without its having a proper influence and effect on every individual, either directly or in a more indirect manner. And so on the other hand, the wealth of a nation cannot be diminished, let it be through whose hands it will, without its affecting every individual in the nation. The detached parts of the United States, as well as [Page 10]individuals, ought therefore, and undoubtedly they will be convinced, that the system of revenue and commerce, which the national government may form and establish, having for its object the general interest and welfare of the states, should meet with the approbation and support of the people, notwithstanding some may be more directly and immediately benefited than others.
Second. But, notwithstanding this, as the United States are in some particulars differently circumstanced with respect to their interests, from the people of any other nation, a spirit of accommodation, I conceive, ought to run through the general regulations of trade. But such accommodations ought not to be without limits. They ought not to be so calculated as to keep the interests of the several states different, and forever separate and distinct; but rather, by some easy and eligible mode in the change of their commercial interests and connections, eventually consolidate, and render them the same.
At present, the same regulations of trade which would be most advantageous to the northern states, might injure the interests of the southern states; for instance, it would be to the advantage of the northern states, if the freighting business should be wholly confined to the vessels of the United States, because they have vessels and seamen sufficient to freight the whole of their productions to market; but this is not the case with the southern states; they have neither vessels nor seamen sufficient for that purpose, and this deficiency the northern states are not at this time able fully to supply. Had the northern states vessels and seamen sufficient to serve the interest of the southern states in their freighting business, they ought by a general regulation to have a preference: But as they have not at present, as they might at this time be much more improved than they are, and as in a short time they might increase their navigation in such [Page 11]a manner as to freight the produce of the southern states, should the southern states neglect to increase their navigation, and still depend on foreign vessels, I apprehend that the regulations of trade respecting the admission of foreign vessels in the commerce of the United States, ought to be adapted to the circumstances of the southern states; but in such a manner, that a preference of some kind be eventually secured to the vessels of the United States, either by an imposition of duties on foreign vessels, or by cutting off the original causes of the preference which has been given to them in the commerce of the States. Again,
The northern states are able to furnish their vessels with a full complement of seamen; the southern states are not, and probably the northern states are not able to supply this deficiency, for which reason I conceive, that the laws of navigation in this particular, should be adapted to the circumstances of the southern states, and admit of a greater proportion of foreign seamen in the navigation of American vessels, than would be proper, were all the states able to furnish a full proportion. The northern states would employ American seamen none the less, on account of such an indulgence; and as the proportion which may probably be fixed, will oblige the southern states to give greater encouragement and support to American seamen than they have heretofore done, it will be the means of producing at last a sufficient number of American seamen, to give a full complement throughout the states to their navigation. Again,
It would be to the interest of the northern states, totally to prohibit the importation of many articles of produce and manufacture; because they do, or might furnish them sufficiently for their own use; and because they do produce and manufacture many articles in sufficient quantities for the use of all the states. In the regulations of trade therefore respecting [Page 12]importations, I conceive many articles of produce and manufacture should be prohibited from foreign nations throughout the states, and others prohibited in the northern states, which may be found necessary to be admitted in the southern states, for perhaps a limited time. But at the same time subject to such a duty as would give support and encouragement to American manufactures, throughout all the states.
Some accommodations of the nature of those here suggested, I apprehend, might take place in the general regulations, much to the present advantage of particular states, without creating any new disadvantages to the general interest, as the states are now circumstanced.
Third. As the system of revenue and commerce will have a direct and immediate influence on the property and interests of the people, it should have certain objects in view, besides the drawing of money into the national treasury. I always had an objection in my own mind, to the five per cent impost on this account. It appeared to have nothing further in view than a revenue; whereas, as I apprehend, a system of revenue and commerce in its construction, ought to aim, 1st. At accommodating the interests of agriculture, manufactures and commerce in such a manner, as to render them reciprocally a support to each other, and mutually beneficial to the interest of the nation. 2d. It should aim at securing to the people the advantages and emoluments of every occupation, business and employment, in which they are severally engaged, not repugnant to the general welfare, by preventing rivalries. 3d. It should aim at preventing a too general and profuse a use of luxurious and frivolous articles of merchandize, whereby the taste of the people becomes vitiated, their morals corrupted, and the valuable property of the country drawn out of it for things of no real worth. [Page 13]4th. It should aim at drawing money from the rich and opulent, for public services in such ways and by such methods, as their own choice and approbation may concur therein; and in this way, 5th. To ease the burdens of the lower classes of the people; and 6th. If there is not circulating money in the states to answer the purposes of the public, as well as of individuals, one great object to be aimed at in a system of commerce, is the increase of money.
In the further treatment of the subject, I shall not aim at system, but communicate my ideas in desultory observations, under the general divisions of AGRICULTURE, MANUFACTURES and COMMERCE.
AGRICULTURE.
AGRICULTURE is the original source, from whence the people derive their subsistence, comforts and conveniencies, and the foundation of the commerce and wealth of a nation. By cultivating and improving the face of a country, its real value is augmented; by the productions of the field, the people subsist and enjoy life; by furnishing the manufacturer and artizan with materials for fabrication, provision is made for the support of an increased number of inhabitants, and the people thereby supplied with their conveniencies; and on agriculture does commerce depend, as its original support. Agriculture should therefore be considered as the first and most important interest of a nation, and the most useful and honorable of all professions. And for the encouragement and support of the agricultural interest of the United States, I would suggest the following particulars. 1st. Every article which is produced in the [Page 14]United States should be prohibited from other nations. Beef, butter, cheese, indigo and iron, are the natural productions of this country, and produced in sufficient quantities for the use of the people throughout the states, and for that reason ought to be prohibited. Nevertheless, beef and butter are imported from Ireland, cheese from England, iron frequently from Sweden, and indigo from the West-Indies, manifestly prejudicial to the agricultural interest of the states.
In justification of the practice of importing these articles from abroad, it is said that they are of a superior quality. To this I would observe, that altho' some preference on this account might be given to those articles of foreign production, yet, such of them as are articles of consumption, and produced in this country, are of a quality sufficiently good to satisfy any reasonable taste. The others are of a quality of sufficient goodness to answer all the necessary purposes required of them; but even if they were not, they might be improved to any degree of perfection. All the productions of the United States might be so improved as to render them equally good with the productions of other countries, and no doubt would be, were suitable encouragement given.
It is, I conceive, by the encouragement of having a certain market secured, and a price adequate to the goodness of commodities, that people are induced to make improvements. It tends to excite a spirit of emulation among them, and whenever that is properly excited, it will render the productions of America in the highest degree excellent in quality; for there is no natural or other insuperable obstacle in the way of it.
A prohibition therefore on the importation of these articles from abroad, I conceive, would be proper, and a means of encouraging and supporting the agricultural interest of the United States.
[Page 15] 2d. Such articles as are not, but that might be produced in sufficient quantities for the use and services of the people, should be encouraged by duties laid on the like articles imported from abroad; or by bounties, or both, as circumstances may require and render most adviseable.
There are three articles which come within this description, and which I have ever thought to be of important consideration. These are silk, hemp and wine; all of which I conceive might be produced in this country to any requisite quantity.
By the experiments which have been made, it is found that silk may be cultivated in all, even the northern states, and that to the greatest advantage; particularly in these respects: 1st. It doth not interfere with the interest or common business of husbandry. Mulberry trees may be planted in such lands, and in such a manner, as not to interfere with or prejudice any other production; and children who are not capable of working in the field, may take care of the worms in every stage of their existence. 2d. The time required to attend to the feeding of the worms is but trifling, compared with any other kind of agricultural business. Six weeks is sufficient to bring the production to maturity, and the necessary employment of that time, children will always consider not a disgustful service, but an agreeable amusement. And 3d. It is the most productive. Five or six children, with the advantage of a mulberry orchard, might produce silk sufficient to clothe a family, with more ease than a family, with its common advantages, could produce wool and flax enough for that purpose.
Without diminishing any of the usual productions of the field, the culture of silk might very soon be increased to such a degree in the United States, as to enable them to export manufactured silk in quantities equal to their present importations.
[Page 16] All the states have more or less lands suitable for the cultivation of hemp; but the middle and southern states have abundance which might be improved in this culture to better advantage than in any other; and when we consider the annual large importations of hemp, cordage and sail-cloth, together with the increasing demand of these articles, by an increasing navigation, and a still farther increase in the demand, in consequence of the establishment of a navy, which will probably take place in some short time, the importance of the culture of hemp must forcibly strike the attention of every man.
And with respect to the production of wine, it may be observed, that there is no country whose climate and soil are better adapted to the cultivation of grapes, than the southern states, and none under better advantages to carry it to a great extent.
It is very possible that the population of this part of the country, and the consequent productions of their present staple commodities, will, in some short time, outrun a profitable demand for them. In such a case, to what could they turn their attention with more sure prospects of advantage to the public, and profit to themselves, than making of wine? This is an article which cannot well be overdone; for the demand for wine is daily increasing in this country, and many other countries are dependent, and always will be, for the wines which they consume: So that the southern states would have no reason to apprehend a failure and disappointment, let their exertions be ever so great in the cultivation of grapes, and production of wines.
The advantages which this country would derive from the cultivation of these articles, are many and important—of such magnitude as to demand the attention of every well-wisher to the interest of the country, and the particular consideration of the National Legislature; and, as the culture of these lies out of [Page 17]the common road of husbandry in this country, and the best methods of management, are perhaps not well understood, I apprehend, to charge a duty on the like articles imported from foreign nations, with a view of giving a preference in market to our own productions, would not be sufficient to introduce and establish them. It therefore appears to me, that premiums might be proposed with propriety, and a good prospect of success and public advantage.
The particular mode of offering premiums, which I apprehend would be the most likely to produce a proper effect, and at the same time the most conformable to the circumstances of the United States, is as follows, viz. For the greatest quantity and best quality of hemp, produced by any one person or company, in either of the United States, in any one year, within twenty years, one thousand pounds, for the second greatest quantity and best quality, five hundred pounds, for the third, &c. two hundred pounds, and for the fourth, one hundred pounds; and the same for silk and for wine, made from foreign grapes cultivated in the States.
Premiums of this amount would excite a spirit of emulation and rivalry among the people, the length of time would be sufficient to make every necessary experiment and improvement, and not too long for that purpose, and by that time the public will probably be able to pay such premiums. In the mean time also, the public would be doubly advantaged by the quantities, by that time already produced, and still more so by the quantities which would succeed, for the cultivation of these being once established, would never be suspended.
3d. For the further encouragement and support of the agricultural interest, good and safe markets for the productions of the country should be secured by treaties of commerce, and by the most effectual measures in the power of the States to promote and protect their trade.
[Page 18] Congress hitherto has not been unmindful of this, and probably all that could be done under the political embarrassments of the States, hath been done; but it is hoped and expected, the present national government can do something more for the advancement of commerce.
Agreeably however to the best political maxims, a market at home for the productions of the field, ought to be sought in preference to one abroad, which are undoubtedly founded in reason and good policy; because it presupposes that in doing this a nation must necessarily increase its artisans and labourers, from whence are derived many additional public advantages.
MANUFACTURES.
THE public advantages derived from the establishment of manufactures, are greater in some respects than can be derived from agriculture or commerce, particularly as manufactures are more immediately and directly productive of wealth. The various articles of manufacture made use of by a people, amount to a much greater sum than those of subsistence, including every luxury; consequently were a nation so circumstanced as to be obliged to make a choice, it would be found more advantageous to attend to its manufactures, and depend on other nations for its means of subsistence, than to supply itself with these and depend on other nations for its manufactures.
An agricultural nation which exports its raw materials, and imports its manufactures, never can be opulent, because every profitable advantage which can be derived from its productions is given into the [Page 19]hands of the manufacturing nation.—The amount of the profitable advantages thus given away, cannot perhaps be precisely ascertained; but if we consider the usual prices of the raw materials and the price of the general run of manufactures, we shall find that there is at least a difference of three hundred per cent. The benefit therefore, of three hundred pounds on every one hundred pound, is given away by, and lost to that nation which exports its natural productions and imports its manufactures.
Neither can an agricultural nation become powerful, and that for this one plain reason, (without descending to a minute consideration) the means of support is, by importing its manufactures drawn out of the nation. This benefit of three hundred pounds on one hundred pounds, goes to the support of the inhabitants of the manufacturing nation, and by that an importing nation deprives itself of the advantage of increasing its inhabitants, in a proportion equal to the means of support thus drawn away.
Connecticut is perhaps the best populated State in the Union, but it has arrived at its ne plus ultra. On its present system, it will never be capable of supporting a greater number of inhabitants than [...] hath done for many years back.—At the same time, if that State should add manufactures to its agriculture,—support a commerce on its improvements,— make returns in productive commodities, and on the whole, apply its natural resources in the most judicious manner to the support of its inhabitants, it might as easily support eight hundred thousand, as it doth now about two hundred thousand inhabitants.
Some countries are so circumstanced as not to he capable of manufacturing;—they have neither the materials or conveniencies;—to some of whom nature has been so bountiful as to supply these deficiencies with rich staple productions; yet even such countries can never be independent, opulent or [Page 20]powerful.—The present state of the West-India islands is aproof of this; their lands are fertile and their productions valuable, yet they are dependent on other countries for their necessary supplies, the balance of their trade is against them, and they are incapable without foreign aid and support, to make a respectable defence. And the southern States whose climate and soil are much in their favor, and whose productions are the most valuable of any of the States, are nevertheless dependent, embarrassed, and by no means populous. The northern States, in all these respects have a preference, notwithstanding the unfavourable difference in their climate and foil.
That which will render a nation in the highest degree opulent, is, its supplying and furnishing itself, from its own resources, and by its own labor and arts, all its necessaries, and a surplus for the support of commerce. The amount of this surplus determines the degree of wealth to which a nation may arrive.—A nation therefore like the United States, which does produce every necessary article of subsistence in a great abundance, which might produce and furnish all of the essential materials for fabrication and manufacture, and which might introduce and support every necessary art, should undoubtedly have in view as its first object, the supplying itself with all its necessaries.—By this and by the surplus productions which the United States will always have for the support of commerce, they may become perhaps the most independent, opulent and powerful nation that ever was known; for their resources are equal to it, but by neglecting the useful arts, and continuing in the habit of importing their manufactures, the States will remain dependent, impoverished and embarrassed, let their resources and agricultural productions be what they will.
A nation in fact may produce all its necessary articles of subsistence,—it may increase its real value by [Page 21]cultivation and improvement,—it may carry on an extensive trade, and it may be remarkable for industry; yet if it, at the same time depends on other nations for its manufactures, it will never increase its circulating property, and consequently will suffer all the inconveniences and distresses, which result from straitened circumstances.—The experience of this country sufficiently proves and illustrate this observation, without entering into a train of reasoning and remark.
As by a combination and mutual co-operation of the general interests of agriculture, manufactures and commerce, the wealth and power of a nation is promoted; so by the concurrence of a variety of advantageous circumstances, contained in the particular interest of manufactures, the wealth and power of a nation receives more essential and important supports from this, than from either or both of the other general interests, they being detached therefrom:— As 1st, by manufactures the natural strength of the nation is augmented. This I have just mentioned before, but I would beg leave to bring it into view again. A moment's reflection will convince us of the importance of manufactures, considering it in this point of light.—How many persons do the importations of the United States support in foreign nations, who possibly may take up arms one day or another against them? The number cannot be ascertained with any degree of exactness, but it is so great as to merit consideration; for whether the arms of these will ever in fact be employed against the States or not, it would undoubtedly be more prudent to support so many citizens who would contribute to the national safety and defence, than to support so many foreigners, whose services could on no occasion be claimed.—2d. By manufactures the circulating property is not only increased but retained, which is as necessary to the commercial life and [Page 22]vigour of a nation, as the blood is to the life and vigour of animals. A sufficient quantity (to pursue the simile) will force its way to the smallest and most extensive vessel, giving it life and activity; while a deficiency in quantity will not only throw the exterior parts but the whole body into a languishing condition. 3d. By manufactures, the productions of the field, those especially which are suitable for manufacturing, are rendered in the highest possible degree valuable. Manufacturing adds three fourths of the value of manufactured articles; consequently must be considered a most important improvement on the productions of the country, and a sure and most eligible means of augmenting the riches of a nation. 4th. By manufactures, a more profitable commerce can be supported, than by the natural productions of the country. A cargo of manufactured merchandize is immensely more valuable, and of consequence will make more advantageous returns than any cargoes the States can now export, except only the article of Indigo. 5th. By the support of manufactures in the United States, returns in trade would be made, not as usually have been made, not in superfluous and unprofitable merchandize, nor in articles incapable of improvement, but in something really valuable,—something capable of improvement, —something productive and accumulating,—something in short which will increase the wealth of the nation.
The manufacturing interest therefore, of the United States, is I conceive of such importance, as to merit particular attention, and to excite the utmost exertions of every true friend to the country.
The enemies to the real interest of the United States, or at least those who regard their own private interest in preference to every other consideration, have ever suggested a number of objections to the establishment of manufactures; as
[Page 23] 1st. That we can always purchase goods cheaper than can be manufactured in the country. This as relates to individuals may in part be true, but as it relates to the public, is by no means a fact. An individual may purchase foreign manufactured goods, probably for less money than this country could at at this time afford to manufacture, many articles particularly, but this simple fact does by no means determine the matter in question. The question to be determined is not, which cost most money, the manufactures of Europe or the manufactures of America; but whether the money thus laid out in the purchase of foreign goods, cost the country more than would have cost by manufacturing the goods themselves or not? To determine the question justly, there is no other rule but a calculation of the labour bestowed on the foreign goods bought, and the labour expended on the produce of the country, which procured the money that purchased the goods; for the value of all productions must be traced up to this original standard. If the question be decided by this rule, which I think must be admitted as the only just one, then I conceive by two circumstances it can be proved, that the United States pay much more for their necessary manufactures by importing them, than they would do by manufacturing themselves; that is, they expend more labour on their produce for market, than would be necessary to expend on the manufactures which their produce purchases. The one is the balance of trade is greatly against them.—It is an industrious country and very productive, yet after exporting all the avails of its labour annually, a balance remains against it; this I know is occasioned in part, by importing too many luxurious and superfluous articles, nevertheless no country as industrious and productive as the United States, but would supply itself with all its necessaries, and all the luxuries made use of by the people, besides [Page 24]leaving a considerable surplus, if its labour was applied in a direct manner to the supplying itself, or did it receive an adequate return.
There is not more labour performed in Great-Britain, according to the number of inhabitants, than in the United States, probably not as much; and as a large or larger sum in the same proportion is expended there for luxuries and superfluities, yet, the balance of the trade of that nation is greatly in its favour, while that of the United States is greatly against them; for which I can assign no other reason but that which I just now mentioned, the labour performed in Great-Britain is well applied and receives an adequate return; in the United States it is, and doth not.
The other circumstance in proof of the point in question is, that from observation and the best information, we know of no article of American produce sold in Europe, that neats twenty shillings, which did not cost more labour than the same amount of manufactures received there in return.—How much more cannot be precisely stated, but if we were to say double, it would not perhaps exceed the truth.
These circumstances shew the reason why this country with all its fertility and industry, is nevertheless embarrassed and distressed; and proves at the same time, that were the labour which is performed in the United States, applied to the production of the necessary materials for manufacturing, and to manufacturing itself, it would be more publicly advantageous, than to apply it to the production of certain articles for foreign market, for the purpose of procuring their necessary manufactures.
This objection however, let it have what weight it may, might be soon removed, by suitable encouragement and support given to manufactures, by being established on good and sufficient capitals, by being [Page 25]put under good regulations, by the increase of manufactures, by habit and use in the manufacturing arts, and by the increase of the materials for manufacturing, the price of manufactures would soon be reduced to a reasonable standard, many articles cheaper than can be imported.
2d. It hath frequently been mentioned by way of objection, that land being so cheap and easy to be obtained, people dependent on their labour for support, would so generally go into husbandry as to render the support of manufactories in the United States impracticable; but I conceive this objection is not well founded.
Since the government is establishing, and probably will finally be established on a good and safe footing, and manufactures patronized, many manufacturers will migrate into this country; these people will never go into husbandry; they understand nothing of it; their sole object in coming into this country will be to enter into those kinds of employment in which they have been educated and brought up, on a prospect of receiving better encouragement and support here, than in their own country. Many have already come and as fast as encouragement may be offered, or prospect of success appear, so fast will the manufactories of the United States be supported by foreign workmen; besides this, there are thousands of youths in the States, suffering for such kinds of employment as the different branches of manufacture would afford them.
The creator and benefactor of men, hath in great wisdom and goodness, so diversified the natural abilities, genius and disposition of mankind, that they have a natural propensity and turn of mind to different occupations and employments, whereby their necessities and conveniencies are mutually provided for, and supplied. Husbandry therefore is not preferred by every one as an agreeable employment, nor [Page 26]entered into by those who have a natural propensity to some other occupation, if such could be found and entered into with prospect of success.
To this we may add another consideration; the manufacturing business is not so laborious as field husbandry, and productive of more advantage to a labourer, so that those who have no lands of their own and nothing to depend on for a support but their labour, will undoubtedly, and in fact, such always did prefer some kind of handicraft business to husbandry.
3d. It hath also been suggested by way of objection, that manufactures would prejudice the agricultural and commercial interests of the United States. That it would lessen the occasion of trade, the necessity of importations being diminished, and of consequence would lessen the demand for the usual productions of the country—To this I would observe—
That in proportion to the extent of manufactures, would be the increase of inhabitants, and consequently of the consumption of the fruits of the earth, and in the same proportion would be the demand for the materials for manufacturing, which would be an advantageous substitute for many of the unprofitable productions of the country; for many of them are the result of necessity, and had much better be suspended.—The increase in the home consumption of the agricultural productions of the country, by the establishment of manufactures, would I conceive be more than a counterbalance to a diminution in their demand in foreign markets in consequence thereof; besides such of the productions of the United States as now find a profitable market abroad, will probably continue the same, let returns be made in what they will.
The West-India islands will always receive many supplies from the States, for they are dependent on this country for them. The European nations also [Page 27]will receive many articles of produce from the States, because they can supply themselves from hence on better terms than from any other country. In addition to these the trade just began in Asia, together with that which might be established on the coast of Africa, and that which may probably be opened up the Mediterranean, will altogether be fully sufficient to take the surplus productions of the United States.
But so far from commerce being injured by the establishment of manufactures, it would derive essential supports therefrom. Manufactures I conceive might soon be so increased in this country, as to enable it to export many articles of manufacture, which in every respect is preferable and far more profitable than the exportation of unimproved produce.
4th. Notwithstanding the objections which have been and are still made, by many to the establishment of manufactures in the United States, yet I conceive there are no obstacles in the way but may be surmounted.
Great-Britain was once under much greater disadvantages, with respect to the introduction and progress of manufactures, than the United States now are, yet by the judicious measures and spirited exertions of the government of that nation, it has overcome every difficulty; carried manufactures to an astonishing length and degree of perfection; and by that has become the most opulent and powerful nation in Europe.
The United States are under better natural advantages to manufacture than Great-Britain ever was, or ever will be; they have a greater variety of raw materials, which if not now, might very soon be increased to any requisite quantity; they produce in a great abundance all the necessary articles of subsistance, which is not always the case in Great-Britain; there is not a manufacturing art in Europe but might readily be obtained, and with respect to workmen, [Page 28]I apprehend as fast as manufactures are encouraged, workmen will be found and on reasonable terms.
There is therefore, I conceive no natural or insuperable obstacle in the way of the establishment, and successful progress of manufactures in the United States; and the advantages of manufacturing are of of such importance both to the nation as such, and to individuals, that it certainly ought to be made an object of particular attention, and excite the exertions of the people in general, and of the national legislature. The patriotism of the people might do much, but without the aid of government, manufactures in the United States will never be carried to any great extent, or arrive at a great degree of perfection.
Many measures I conceive might be taken both by individuals and by the government, for the advancement and support of the interest of manufactures in the states.
1st. The establishment of manufactures on good and sufficient capitals is essential to their prosperity. Every branch of manufacture would be greatly benefited by this; but there are some could not be put into operation without great pecuniary assistance. A fear of failure has I apprehend hitherto deterred people of property from attempting such manufactures; but if the national government should give suitable protection to manufactures which cannot be doubted, they will, it is to be hoped and expected, receive the aid of men of wealth. By supports of this kind the linen, woollen and cotton manufactures in this country might soon rival the European manufactures in their cheapness and quality, if not in their quantity; and I cannot but be of opinion from many facts which have fallen within the observation of every one, that those gentlemen who have loose property and have improved their money in trade because they [Page 29]could not find a more profitable use to put it to, would have profited themselves and benefited the public much more had they have turned their attention, and applied their money to the establishment of manufactures.
At the close of the late war the trading part of the people and those who entered into trade about that time, were possessed of money sufficient to have established every necessary manufactory in the country, even at the high prices labour and materials then were, besides furnishing the people with their necessaries. Had this money been improved in this way it would have been retained and secured, at the same time a property as permanent and productive as the lands, which are esteemed the most so. But it has been exported out of the country, and brought in return luxurious, superfluous and frivolous merchandize, most or all of which are now consumed and perished, leaving nothing but a disagreeable reflection of the misapplication of a property of great magnitude.
2d. Another support which manufactures might receive from individuals, is the cultivation and increase of the necessary raw materials; this support depends on the planters and husbandmen, and two motives ought, I conceive, to stimulate them to exertions herein: the one is the public, and the other the private advantages which are to be derived from manufactures; setting aside considerations of public advantage, it would undoubtedly be more to the private interest of individuals to exchange their raw productions for home manufactures on terms of equality, than to throw away a great deal of labour in the productions of certain articles for foreign markets for the purpose of procuring foreign manufactures, which has always been done on terms of inequality.
It is true, one of the most powerful incentives a planter or husbandman could have to exertions in the cultivation of the necessary materials for manufacturing, [Page 30]is a sure and profitable market. Such a market depends on the support and encouragement which the government may give to manufactures, and as every possible encouragement and support will undoubtedly be given by the legislature, the planter and husbandman may begin with a good degree of assurance, to make the cultivation and production of the manufacturing materials an object of attention.
3d. The particular measures which government might take and which I conceive are essential to the encouragement and support of the manufacturing interest of the United States are—1st. To prohibit the importation of such articles of manufacture as are already furnished in sufficient quantities for the use of the people—2d. To prohibit the importation of such articles as might specially be furnished, and which by a temporary deficiency the people would not be laid under any special inconvenience—3d. Such articles as might be soon furnished, and which would discommode the people, were they prohibited before supplies could be obtained from our own manufactories, I apprehend should be charged with such a duty on their importation as would give a small preference in market to the productions of the United States—and 4th. Whenever any branch of manufacture arrives to such a degree of perfection as to answer the purposes of the people, protect it by a total prohibition on the importation of the like foreign articles; even let it be in itself of ever so trifling a consideration, for many small things in the course of time will amount to something of importance.
Under the two first description of articles I consider the following, viz—Anchors, axes, plantation hoes, scythes, cast iron of all kinds, scale beams, steelyards, stoves, English steel, mounted swords, hangers and cutlasses, sheer iron, bells of all descriptions, saddles, bridles, shoes, boots, boot legs and foal leather; every other kind of leather manufactures, coaches and [Page 31]all kinds of carriages, fire engines, cabinet, joiners and turners work, walking sticks and whips, billiard tables, backgammon tables, umbrellas clocks, jewellery, gold and silver plate, gauging rods, sea compasses, quadrants, cordage, burr mill-stones manufactured, cyder, porter, ale, cordial waters, soap, candles, lintseed oil, paints ground in oil, refined sugar, snuff, and all kinds of manufactured tobacco, starch, mustard, cloaths and millenery ready made up, beaver, castor and felt hats, playing cards, paper hangings, buckles of every kind, sleeve-buttons, toys, brushes of every sort, wool and cotton cards, tin ware, horn combs, musical instruments, salt petre, probably several other articles which have escaped my recollection; also, spelling-books, primers, psalters, testaments, perhaps bibles, together with a number of frivolous articles, as bird cages, mouse traps and the like; also, joiners tools in stocks.
To this enumeration I would add a few remarks.
1st. I have frequently heard objections made to the laying prohibitions, because as it is said the manufacturers in this country will take advantage of it and raise the price of their productions. To which I would observe, 1st. That if the United States ever intend to make manufactures an object, they must at one time or another lay prohibitions, for without, the manufactures of this country will not be sufficiently encouraged; and whenever prohibitions do take place, this consequence may possibly follow; but it will not be of long duration. By the encouragement of good prices, numbers will be influenced to enter into the manufacturing business; by numbers entering into the business their productions will be increased beyond an immediate demand, and as soon as this is the case the price of manufactures will be reduced to a reasonable standard—2d. Such an inconvenience to individuals will be of no prejudice to the interest of the public; so much property will be in the nation, [Page 32]let it be in whose hands it will—3d. The advantages to the public of acquiring property by the arts and industry of the people, which eventually benefits every individual, are by a great difference more important than the disadvantages of giving a small advance in the price of their necessary manufactures. The objection therefore does dot appear to me to have a weight sufficient to prevent such prohibitions being laid as may be found necessary to encourage and support the manufactures of the United States.
2d. It is probable it will be found necessary to permit the importation of some of these articles into some of the states while they are prohibited in others for reasons already assigned; but on such terms I conceive as will encourage and support home manufactures in all the states.
3d. As it is of importance to mankind that the scriptures be preserved and handed down to posterity in a state of the greatest purity, so I conceive it to be of consequence that their publication in this country should be under proper regulations. The editions published in the states, which I have seen, are faulty. Faulty and incorrect editions may and indeed they tend to the introduction of essential errors. To prevent which, I would suggest as a question, whether it would not be proper that the publication of the scriptures or any parts of them should not be licensed and patented, and the press under the inspection of a committee?
Under the third description of articles, I consider sail cloth and all kinds of hempen cloth, cotton cloths, woollen, linen and cotton hosiery, iron shovels and spades, frying pans, brass, copper and pewter manufactures; fire arms, gunpowder, hand bellows, and paper, types, and probably some other articles which not at this time occur to me.
Most or all our woollen and linen manufactures might very soon be performed in this country, with [Page 33]exertions, so also might our ironmongery and cutlery; but as they are necessary for the use and services of the people, and but few of these manufactures began; I conceive to charge them with a heavy duty at this time, would lay the people under a real hardship, without the prospect of immediate advantage, as in the case of those articles which I have enumerated; however when these, in any of their branches shall be so far advanced, as to afford a prospect of their arriving at a point of importance, they should receive the support of government.
Besides the prohibitions and duties on articles of importation, I conceive there are some other public measures, which if adopted would tend essentially to the support of the manufactures of the United States. Among several which might be suggested, I would mention the following:
1st. A prohibition on the exportation of such materials, as might be wholly manufactured in the country; of such I think of but one at present, and that is fur. All the fur collected in the country might, I apprehend be manufactured in it, if so, an advantage of three or four hundred per cent, on the fur which is now exported, would be acquired and retained.
2d. A free importation of such articles as are necessary for the support and successful progress of manufactures in the States, which are not produced in them, or not produced in sufficient quantities, or of a quality sufficiently good of such articles, I reckon cotton. The culture of this article is increasing fast in the southern States, and bids fair to render a prohibition on the importation of foreign cotton requisite in a short time, unless it should be found of advantage to mix foreign cotton with it, but at present an importation may be necessary. To this may be added fine wool, until at least the breed of sheep is improved in this country,—also hemp, until the [Page 34]cultivation of this article becomes more extensive in the States, together with allum, copperas, sulphur, tinplates, pewter, lead, brass, copper, paints not ground, except lampblack, burr stones, dying woods and all kind of dyes, except indigo, mahogany, lignumvitae, ebony, box wood, elephants teeth, perhaps hides,— also machines, new constructed instruments, &c. for the improvement of agriculture and manufactures, and for the benefit of the arts and sciences.
3d. Some special encouragements for the introduction of such manufacturing arts as are not generally known; such offers I conceive might be made, as would introduce into the States, every manufacturing secret in Europe.
4th. Some exemptions with respect to taxes, granted to manufactories and to manufacturers; encouragements of this nature have a great influence on the minds of artificers and labourers, much more than on their property. The very idea of patronage gives life and vigor to industry and the arts. It stimulates the people to exertions, and throws a chearful ray on the toilsome labour of their hands; and I know of no demonstration of a public and general patronage of manufactures, more expressive than an exemption from taxes those who are employed in the manufacturing business.
COMMERCE.
COMMERCE in its connections and influences is undoubtedly capable of producing a variety of important advantages to a nation, particularly in these respects: It provides a market for the surplus productions of a country, which otherwise would be rendered useless and of no value: It furnishes the people [Page 35]with such necessaries, comforts and conveniences, as their own country doth not furnish and produce, and it gives employment and support to a great number of people of various professions and occupations: It is also the medium by which a nation accumulates wealth —Commerce therefore merits the encouragement and support of government.
But, although commerce is adapted to the promotion of public interest, and productive of many private benefits and advantages; yet, it may produce ruinous consequences to a nation: for which reason, it is incumbent on the legislative authority, to restrain the licentious operations of commerce, to which it naturally tends, and so to regulate it as to render it subservient to the general interest of the nation.
If a free and open trade was admitted by all nations, it would, perhaps, promote the greatest interest and happiness of mankind, at least, it is the opinion of many writers on the subject; but since most, or all nations keep their mercantile interest separate—since they aim at engrossing an unequal share of commercial advantages—at securing in a particular manner the advantages which result from their own situation and circumstances, and of rivalling other nations; the idea of a free and unlimited trade is highly impolitic and absurd: The chain of a free and universal commercial intercourse being once broken, by any one nation, every other nation included in the circle of correspondence, is laid under an obligation thereby to secure their own interests, and retain their just share of advantages.
The nations of Europe, with whom the United States maintain a commercial intercourse, have considered their mercantile interest as wholly separate from the interest of all other nations, and taken the most effectual measures to prevent others from participating in the advantages which their situation and circumstances afford. The United States therefore [Page 36]ought to adopt and establish the same principles, and regulate their trade in such a manner as to secure themselves the commercial advantages which are to be derived from their circumstances, and prevent other nations from taking such prejudicial liberties as a licentious commerce unavoidably exposes them to.
There are certain objects, therefore, to which the commerce of the United States ought to be directed, and to which it should be confined; as 1st. To procure a profitable and advantageous market for the surplus productions of the country: 2d. To supply the people with such necessaries as the country doth not furnish: 3d. To give employment and support to the merchant, mariner and mechanic: 4th. To increase the circulating property; and 5th. To become a basis on which to establish a national revenue.
These are objects which I conceive should be particularly attended to, and had in view in forming a system of commercial regulations; and that I may communicate my ideas on this subject in the clearest and best manner, I would arrange them under the several particulars which I have here stated.
I. To procure an advantageous foreign market for the surplus productions of the country, is one benefit of commerce, and an object to be had in view in the commercial regulations.
The first and most striking idea which arises in our minds here, is, the obtaining the greatest price for the productions of the country. The spirit of speculation so prevalent among merchants, will always direct to a proper choice in this particular; and were it not for circumstances connected therewith, the interference of government with respect to markets would be unnecessary. But when trade is under no legal restrictions, and the productions of the country at liberty to be exported to such markets and in such methods as are most agreeable to the interest, convenience and private views of individuals, notwithstanding the [Page 37]greatest prices are obtained, yet it will most commonly be attended with two consequences extremely prejudicial to the interest of the nation; the one is with respect to the returns which are frequently such as tend to interfere with and suppress the agricultural and manufacturing interests, and which are luxurious, frivolous and unprofitable; and the other is, it may and in fact often does contribute to the support of rival interests in foreign nations; for which reasons it appears to me that there is a necessity that government should not only prescribe the mode of commerce, but direct the foreign markets to which the productions of the country may be exported.
The particular measures which I conceive government might take to procure and promote a beneficial market for the productions of the country in foreign nations and countries are these, viz. 1st. To form treaties of friendship and commerce with such nations, wherein there is a profitable demand for the productions of the states, and with whom a trade may be established on the principles of mutual advantage—2d. To remove the impediments out of the way of such profitable markets as may be obstructed—3d. To aid and assist the merchants in the establishment of any new trade which may be found, and which may require public support—and 4th, To form such regulations as would tend to support the value of the produce of the United States in foreign markets. To these I would observe,
1st. That altho' the states have entered into treaties of friendship and trade with some of the European nations, in which a good market for many of their productions are found; yet with Great Britain where a great part of the produce of the states go to for a market, and from whom the greater part of their supplies of manufactures are received, no treaty hath or could be entered into; the reason of which I conceive to be that Great Britain entertaining an opinion that [Page 38]in consequence of the broken state of the American government, the difference in their local interests, the spirit of rivalry and jealousy subsisting between them, and the obligations the merchants of the states were under to the merchants of that nation, no general regulations such as would render the commerce of the two countries reciprocally beneficial, would ever be adopted by the states. Great Britain therefore proceeded on this idea, and prescribed the terms and mode of trade between that nation and this, which are founded on the principles of a monopoly. All the prosits, all the advantages which are to be derived from the trade are secured to Great Britain; all the disadvantages devolve on the states. The advantages which Great Britain derives from the commerce of the United States in the mode in which it is now carried on are many and important; and so long as they can be held, no proposals for a treaty of commerce will I conceive be attended to by that nation; and I am humbly of opinion that nothing but the spirited and decided measures of the legislature of the United States will ever produce a treaty of commerce with Great Britain, or secure to the states an equal share of advantages in the commerce of the two countries.
In general I would observe, that a trade carried on between two nations on sufferance, is always precarious, liable to many impositions, and never reciprocally advantageous; for no two nations were ever so circumstanced as to maintain an equilibrium in the benefits of commerce, without stipulating the terms on which it should be prosecuted: One will derive unequal advantages; the other in consequence thereof will be subjected to proportional disadvantages; for which reason I conceive a treaty of commerce should in the first instance be formed and entered into by the United States, with those nations in which an advantageous market for their productions may be found.
[Page 39] 2d. A profitable trade I apprehend might be carried on by the United States up the Mediterranean, could a settlement, and a treaty of amity with the Dey of Algiers be effected; but as the depredations committed on the navigation of the United States by the Algerines, were begun and are now supported by the intrigues, and through the influence of the British court, it will be a work of no small difficulty to procure the peace and friendship of that piratical state. The legislature of the United States however will undoubtedly continue attempts for the accomplishment of so important an end, whereby the freedom and property of the citizens of the States may be secured, and a trade opened up the Mediterranean.
3d. An advantageous trade I conceive might be established on the coast of Africa, particularly that part called the Gold Coast, where a profitable market might be found for the productions of the States; this country distilled rum particularly; and where also several valuable articles by way of return are to be had. But whether an extensive and safe trade could be carried on there without establishing factories, and they supported by the power of the States, I will not pretend to determine; neither will I pretend to say whether the States have it conveniently in their power to support factories on that coast, should national support be necessary. If however, it should appear that an extensive trade could be opened and carried on there, I should imagine the government would consider it an object worthy of attention, and as far as was in its power, give the trade every aid and support; for every new market which can be found for, and every new consumer of the productions of the States, not only advances the interest of commerce in particular, but eventually promotes every particular interest of the nation, except in those instances where a rival interest is supported thereby. Besides, I know of no nation or country with whom the States [Page 40]carry on a trade, where commodities in return are to be found more valuable.
4th. A profitable market for several of the productions of the States, might be found in the Spanish American dominions, were it possible to obtain permission for that purpose from the court of Spain. This however, can scarcely be hoped for, considering the policy of the Spanish nation with respect to its trade. It may nevertheless be worth while to attempt it, for there are certain times when nations, as well as individuals, feel more liberally disposed than is usually the case.
5th. The trade just began to Asia, might, I apprehend, be productive of many benefits to the States, were it prosecuted upon a judicious and well constructed plan; but if my informations are to be depended upon, and my ideas of the trade as it is now circumstanced, just, I cannot think it beneficial to the States, or as lucrative to adventurers as such a trade ought to be.
There are among others, two objects to be kept in view as essential to the interest of this trade;—the one is the support of the value of the produce of the States in the markets of Asia, and the other is the quality of the merchandize received there in return.
If the value of American produce exported, could be supported in such a manner as to make profitable returns to the merchants, it would render the trade beneficial to the public; because it would be the most direct and advantageous method by which the States could import the productions of Asia; but if the produce of the States, fall in their price in such a manner as to render the exportation of considerable sums of money necessary, in order to make the voyages profitable, I apprehend no advantage accrues to the public by the trade: for in the first place I conceive the States cannot at this time export large sums of money without distressing other interests, of [Page 41]more consequence than any, or all the luxuries of the East. Were there such an influx of money into the States, that there was a danger of its depreciating in value, the exportation of money would be adviseable and necessary,—this however is not the case at present; or were the importations from Asia necessary, or applied to the support and promotion of some other national interest, the exportation of money for the support of the trade, might not be disadvantageous; but this is not the case. The importations from that country are all of the luxurious kind; are incapable of improvement, and are not applied to the promotion of any other interest, or did the Asiatic trade bring into the states as much money as it carried out, no inconvenience to the public interest would arise by the exportation of money; but this also is not the case—The States have no foreign market for their importations from Asia; the trade originates and terminates within themselves. In the second place, as no freight can be made on money, the profits on the importation or returns must be augmented, in order to support the merchant in the trade. This additional profit must necessarily be drawn from the people of the States, since no foreign market is opened for India goods through this channel.
A supply of any kind of merchandize, more than sufficient for the immediate use and consumption of the people, will always be the occasion of reducing their price in any market. This is a circumstance common to all, for which reason suitable measures ought to be adopted to prevent, as far as possible, such an inconvenience in voyages, as lengthy, expensive and important as those are from the United States to Asia.
The voyages from this country to that are wholly unconnected with one another; and consequently the business of negociation is in the hands of the supercargoes of each ship. The interest of each particular voyage is the object of the respective supercargoes; [Page 42]and of course a competition of interests naturally takes place between them. Dispatch is with them a consideration of equal, or greater moment, than the support of the value of the produce of this country, and a temporary private advantage of greater account than a permanent and durable public profit and interest. These circumstances, I conceive, have been the occasion of American produce being sold at a reduced price from time to time in the markets of Asia, until, as I have been informed, it will not pay a freight in any measure equal to the length and expence of the voyage: And as there are no established American factories in the sea ports of Asia—no well established correspondents in the country, and American cargoes sold on the spot, on the best terms that can be obtained, and cargoes received in return in such articles as are at hand, and that can be the easiest procured, unmerchantable goods, such as are refused at the European factories, are in consequence of these circumstances palmed upon the American merchants, extremely prejudicial to the trade.
I am by no means positive in my opinion respecting the Asiatic trade, for it is founded on but transient information, and my own reflections on the subject; but until I am convinced by superior evidence, I must think that if the trade from the United States to Asia was a company concern, and the business in that country negociated by one set of merchants; or in any method which would unite the American mercantile interest in Asia, and render it the same, it would be a means of supporting the value of American produce in those markets, and of procuring in return merchandize of the best qualities; and these I conceive are objects of important consideration in the trade. Nevertheless, admitting these remarks to be just, and that it would be possible to put the trade upon a more advantageous footing, I know not whether the government could constitutionally, or with [Page 43]propriety interfere, or take any measures respecting it. If however it should be found that any regulations which government might form, would tend to keep an important branch of commerce from dwindling into nothing—to restore it to its expected consequence, and to render it of public benefit, I should imagine such national measures as would answer these purposes, might with reason and propriety be taken.
II. To supply the people with such necessary articles of produce and manufactures as their own country doth not furnish, is one principal end and design of commerce.
No man ever was or ever will be so independent as not to need assistance from his fellow creatures, or to render a commercial intercourse unnecessary; and the same mutual dependence which subsists between individuals in the same country, subsists between countries themselves. No nation or country furnishes every thing necessary to the comfort and convenience of its inhabitants, in such a manner that the happiness of the inhabitants of the respective countries could not be augmented by an exchange of their productions. Commerce therefore is essential to the interest and happiness of mankind on this account. Besides, it is the best calculated mean of promoting the interest of society; but as this is foreign from my design, shall wave it.
By an exchange of commodities, giving such as an individual or a country produces in surplus quantities, and receiving by way of return such as are not produced, and which are necessary to subsistence, comsort and convenience, the happiness of mankind is reciprocally promoted, and the original end and design of commerce fully answered: And so long as the commerce of two nations or countries is carried on with this view, and confined within the limits of this rule, it answers its original and essential purposes. But whenever it breaks over this natural boundary— when no restrictions are laid on the importations into [Page 44]a country, and the emolument of individuals becomes the only object of trade, without regard to national welfare, it will necessarily and unavoidably produce prejudicial consequences; and in proportion to the prejudices which one nation suffers by such an unrestricted commerce, will be the extraordinary advantages received by the other nation.
We often overlook the influence and effect of a licentious trade on the interest of a nation, either because we do not like to investigate a subject of so extensive and complicated a nature, in which we suppose we have no immediate concern; or because they are diffusive, and not confined to any particular object. But, should a wealthy planter in any part of the country, permit his children or servants to import from another part of the country, such articles of produce as he produced himself, and supply his usual customers and purchasers therewith, the effect it would have on his interest would be striking and obvious to every one: The effect and the cause would be clearly seen and understood by every man, and it would be a conclusion universally agreed in, that such a man, continuing to permit such a conduct, must in the end be inevitably ruined. This conclusion applies with equal force and justice to a nation that permits a licentious trade—that permits the importation of such articles of produce and manufacture as it produces and manufactures itself. All the difference between a nation and an individual consists in this; in the one case, the prejudice is pointed and insupportable; in the other, it is diffusive, and by being borne by a nation, is supportable. And,
If it be repugnant to the interest of a nation to import into it such articles of produce and manufacture as it actually doth furnish, it must also in some degree be prejudicial to import freely such articles as it might produce and manufacture; because this would be cutting off a source of national wealth at the fountain [Page 45]head; it would be destroying a seed in the earth, which one day might have become a flourishing plant.
But my idea in stating this rule or maxim, extends further, and aims at laying a restraint on the importation of foreign luxuries, and frivolous articles of merchandize, notwithstanding the country may not furnish them; because they are not necessary.
The free importation and unrestrained use of such articles, injures the interest of the country in a variety of respects. It tends to vitiate the taste, and corrupt the morals of the people; to enervate the sinews of industry; to destroy that spirit of oeconomy which ought to be preserved in the body of the people; to inspire them with a spirit of vanity, and to excite an illaudable ambition of being distinguished by pageantry and shew; to draw them insensibly into habits of dissipation and profuse expences; and it directly draws their hard earned and valuable property away for that which is of no real use to them.
Were articles of luxury and superfluity the production of the country which consumes them, one material ill consequence, as it respects the interest of the public, would not follow; which is, that notwithstanding individuals might be ruined by a too free use of unnecessary articles, still the property would remain in the nation: But by freely importing from foreign nations, and making use of such articles, the folly and loss becomes national.
In applying these general remarks to the commerce of the United States, since the revolution, it is to be observed, that the welfare of the nation, and the convenience and happiness of the people, have not been the objects aimed at by their trade, but the private advantage and profit of individuals: And as no legal restrictions, have been laid on importations, not only necessary, but luxurious, trifling and useless articles have been imported, and freely made use of; and the consequence has been, poverty and distress among the people.
[Page 46] From among a great variety of luxurious and unnecessary articles imported into the United States, I will select one for particular consideration; that is ardent spirits. The trifling duty laid on these by the different States, have laid no restraint on their use. They are within the reach of every one, and are as freely made use of as of the cheapest and most innocent drinks; and what are the consequences? Perhaps half a million of pounds in money and other property has annually been drawn out of the States for rum, brandy and geneva. Many who might have been useful members of society, have become by the intoxicating draught, perfect brutes—lost to society—lost to their friends and connections, and lost to themselves. We frequently observe idleness and dissipation—families reduced to infamy and distress—riots, quarrels and murders—a good constitution destroyed early in life, and persons sent prematurely to the grave, in consequence of the free importation and unrestrained use of ardent spirits.
The United States is a young nation, and requires a great deal of industry and good oeconomy to render it independent and opulent: No nation therefore can be more essentially injured by a luxurious, dissipated habit of living; yet none expends so great a quantity of spirituous liquors, according to the number of inhabitants, as the United States, and with less occasion; for all the necessary drinks might be furnished within themselves, in a great plenty and sufficient variety.
Great-Britain is an old nation, and has become opulent; yet, were she to admit of as free a use of ardent spirits as the United States, it would go nigh to ruining the agricultural and manufacturing interests of that nation. So sensible is Great-Britain of the ruinous consequences of an unrestrained use of spirituous liquors, that rum, the produce of their own islands, is charged with such a duty, as to put it beyond the reach of people in general.
[Page 47] As spirituous liquors are no ways necessary to the existence, comfort or convenience of the people, but productive of ruinous consequences to individuals, and prejudicial effects on the interests of the nation, such a restraint, I conceive, ought to be put on their use, as would be sufficient to lessen it, and to turn the attention of the people to those means and advantages which the country hath put into the hands of every man.
A duty therefore so high as would produce this effect, should be laid on rum, brandy and geneva imported into the United States. For my own part I believe a duty of five or six shillings a gallon, would not be too much to answer the purposes intended thereby. Their prices would be raised in consequence of such a duty about two hundred per cent. and if the quantity made use of was to be lessened in that proportion, it would be fully sufficient to answer the people every necessary purpose. The man the most attached to spirituous liquors, must admit in his sober moments, that one third of the rum, &c. used by the people, is enough, and more than enough for their benefit. But, as the habits of the people will overpower reason, and as their virtue is too weak to produce a general reformation, the exertions of the powers of government becomes necessary to this purpose.
Those who are concerned in the rum trade, and import spirituous liquors, might suppose themselves injured should such a duty be laid; but two considerations are worthy of notice here; the one is, that no good and sufficient reason can be given, why a general and public evil should be continued, merely because some individuals are benefited by it; and the other is, the importer would not be so much injured as might at first be imagined: The small duties now laid on rum, &c. are in general a tax on the importer, not on the consumer. Rum is sold at about the same [Page 48]price it would have been, were there no duties laid on it; but if it was charged with a heavy duty, the importer would never think of giving it away: He would consider it a part of the prime cost, and accordingly compute his profits; and the duty in this case would fall where duties always ought to fall, viz. on the consumer. Besides this, if the importation of rum, &c. should be lessened in consequence of such a duty, the demand would be greater than usual; for, let the price be what it may, there will be those who will purchase and make use of spirits; consequently, the importation might be rendered as profitable as by importing larger quantities.
The importer might make another objection—That the rum, &c. would not produce money sufficient to pay such a duty. In this case, if he had no other method of procuring money for that purpose, he would import money with the rum, &c. and, as I just observed, consider it a part of the prime cost. By this the importer would suffer no inconvenience, and the public derive an additional advantage.
Another objection might also be made—That lessening the importation of these articles, would lessen the demand for the produce of the country. This I will admit, so far as to the staves and hoops which would be necessary to make casks for the rum imported. But to this I would observe, that if the lands and labour of the people produces nothing in return more valuable and publicly beneficial than spirituous liquors, it would be much more to the benefit of the people to lay aside such productions, and turn their attention to something more profitable and advantageous.
Ever since I can remember, and long before, Connecticut has pushed a trade with the West-Indies, exporting horses, and importing rum as a principal article of return. In this trade, I apprehend, a large sum hath annually been sunk. For, in the first place, the horse, at the time it is sold for exportation, hath [Page 49]in general twice eaten up its value; and the next its returns are consumed in a few days without producing the least benefit to the public. I reckon every horse exported and returned in rum, as so much property lost to the general interest; and who the individual is that makes any advantage by raising and exporting horses, I know not; it is evidently not the farmer, and as certainly not the merchant; not one in ten ever made any thing by it, and at least five out of that number have been ruined by pursuing the trade.
Were the people to turn their attention to raising of sheep and the cultivation of the necessary materials for manufacturing, and give manufactures the necessary support, instead of raising horses for exportation and the production of other commodities for the purchase of rum, they would soon find themselves in the event essentially beneficial; besides the satisfaction of reflecting on the advantages which the general interests of the nation would derive from their patriotic exertions.
The importation of wines I do not consider as attended with such prejudicial consequences as of ardent spirits; wines are not so intoxicating—are not so destructive to the constitution, and coming at a higher price are not so generally made use of. For these reasons—I do not think so high a duty should be laid on them as on rum, brandy and geneva.
Besides spirituous liquors, there are a variety of luxurious and frivolous articles of merchandize imported into the states, in the highest degree unnecessary. These being the produce and manufacture of foreign nations, the people are extremely unwise in making a general and liberal use of them. In doing this they give a great deal of valuable and hard earned property away for things of no real value; and while they thus impoverish themselves they contribute largely to the emolument of other nations, who possibly one day or another may scourge the states with the money [Page 50]which they now profusely give them for considerations of little worth. Motives of patriotism and of policy ought to induce the people to oeconomise better. However, as considerations of public utility and benefit have little or no influence on the minds of those whose views centre in themselves, and whose objects are the gratification of their vanity and their apperites; and as the people have been long habituated to the use of many supersluous and frivolous articles of foreign produce and manufacture, it will probably be thought not advisable to lay a prohibition on their importation; but I conceive a higher duty should be laid on them than on necessary articles; and that for two reasons—the one of which is, it would tend to lessen their use and importation; and the other is, they are a proper medium, by which to apply to the pockets of the rich and opulent for money for the services of the public.
Such hath been the perplexed situation of the government of the United States, that no system or uniform rule respecting their importations could be formed and established by legislative authority; and altho' it is a maxim with many that trade will regulate itself, yet the experience of this country teaches us that views of private advantage with the merchants, often-times carry them beyond the interest of the public, and in many instances pushes them beyond their own; so that no rule such as would best promote the public welfare, can ever be expected will be adopted by the merchants or take place in the common course of mercantile business; and indeed the experience of all commercial nations proves that the interest and views of individuals are so discordant among themselves, and in many instances and many respects so opposed to the interest of the whole with respect to importations in a particular manner, that to suffer the commerce of a nation to be prosecuted under the idea of its regulating itself, it would be the means of ruining [Page 51]the merchants and of injuring in a special manner the national interest and welfare; trade never regulated itself except with respect to the prices of merchandize in market.
The natural sources of the wealth of the United States, and the general interests of the people therefore require the aid of the powers of government for their encouragement, support and protection; by confining importations from foreign nations to such necessary articles of produce and manufacture as the states do not furnish. By laying a restraint on the too free importation of such articles of produce, but especially manufactures, as the states are capable of producing and manufacturing, that they may have an opportunity of being brought forward; and on the too free importation and use of foreign luxuries and frivolities.
III. To give employment and support to the merchant, mariner, mechanic, &c. is another end and design of commerce, and an object to be had in view in forming the general regulations of trade.
The private emoluments of trade are of great consequence, and as they are of a diffusive nature and go to the support of a considerable proportion of the inhabitants, who as seamen, mechanics and labourers depend on the merchants for employment; and as the acquisitions of commerce are drawn out of the industry of the people, it is a matter of essential difference whether the profits of trade are acquired by foreigners, drawn out of the country and applied to the support of the subjects of foreign nations, or whether they are acquired by the subjects or citizens of the states, and by that means retained, added to the stock of national wealth, and applied to the support of those citizens who are dependent on commerce for employment.
This is an object which it appears to me the states have hitherto entirely overlooked; for they have [Page 52]seemed to vie with each other in granting encouragements to foreign merchants to reside and establish mercantile houses in them. Some few circumscribed and unimportant benefits result to a mercantile town by crouding it with merchants; but no general and national advantages are derived from an unnecessary number of merchants, even if they are subjects or citizens. But the advantages of increasing foreign merchants in a country or a town, are by no means equal to the disadvantages which smally take place. They circulate a little money it is true among the people in the course of business; but this is no more than the merchants of the states would do. They acquire property by trade out of the industry of the people, and draw it out of the country into other nations. This the merchants of the states would not do; whatever property they acquired would be retained, which in its revolutions would revert back to the benefit of those who produced the property by their labour. Wherein then consists the advantage of employing foreigners in the commercial business of the United States? For my own part, I must confess whether it proceeds from ignorance or prejudice, or not, I cannot see any advantage in it; but on the other hand I see, or at least imagine I see, numberless important disadvantages and prejudicial consequences flowing therefrom. Neither can I see any necessity for it. The states require nothing more of their merchants than to exchange their surplus productions for such articles of foreign production as they need on the best and most advantageous terms; and surely there are men enough in the states of sufficient property and competent knowledge and skill in mercantile matters, to transact all the necessary commercial business of the states; men who are natives of the country—who have no attachments to any other—who would retain all the emoluments of trade, and apply them to the benefit of the citizens; then [Page 53]certainly there can be no necessity or special reason for calling in the aid and assistance of foreign merchants.
Were the foreign mercantile houses established in the United States, but few in number, it would scarcely demand a serious consideration; but this is not the case; most of the states have foreign merchants residing in them, and in the southern states the greater part of their mercantile business is engrossed by foreigners; consequently most of the acquisitions of property by the commerce of these states is drawn out of the country into foreign nations. What the annual amount of this is cannot be ascertained; but when we consider the quantity of goods sold by foreign merchants, the advance price generally put on them together with the amount of freights, which in this course of trade is naturally secured to foreign ships, we must be convinced that it is of magnitude and worthy of attention.
Great Britain by the measures which it has taken through the indulgence of the states, and I believe I may justly add their ill policy, has engrossed and secured every profitable advantage which is to be derived from the commerce of the states. From the avails of the labour of our husbandmen does Great Britain derive support for her merchants, manufacturers and seamen. They are literally hewers of wood and drawers of water to that nation, and in consequence of this servile and humiliating state of trade, the citizens of the United States are left destitute of the means of support; many of their merchants have been crouded out of business and bankrupted; many of their seaman have either been forced from home or reduced to the necessity of begging the most servile offices on shore; and thousands of mechanics have been driven abroad to solicit that support from foreign nations which their own country could not afford them.
[Page 54] Such indulgencies and such a preference ought not to be granted by the United States to any nation whatever. To Great Britain the last. Every man of common understanding throughout the states must know that Great Britain as a nation is an enemy to this country, and is making use of every means in its power to ruin the interests of the United States, and to bring about an opportunity of re-establishing a dominion over them. The apparent friendly disposition which may have been shewn by the nation, are but the smiles of a false friend; so long as the advantages which are now derived from the commerce of the United States shall be continued to Great Britain, so long may its spirit of enmity be restrained within bounds; but no longer after such monopolizing advantages cease, than until a favorable opportunity offers of employing its power against the states with a good prospect of success. And I believe it would not be doing violence to truth were I to add, that the same spirit of prejudice and enmity which prevails in the British nation, predominates in the breast of most if not every British merchant residing in the states; the number of whom is so great, that should the country be again involved in a war, it would find a formidable enemy where it ought to look for friends and supports.
I would not be understood to mean by this that every British merchant residing in the states is such an enemy as to be anxious for an opportunity of drawing his sword on their citizens. Mercantile connections will for a time, so long as private interest can be promoted thereby, sheath the sword of the bitterest enemy. But it cannot be supposed that these people have the interest and welfare of the United States in view as an object. Their view primarily is to advance their own private interest; and secondarily is to promote the interest of the nation to which they belong. Their friendship therefore, I was going to observe, [Page 55]would be co-existent and co-equal with the benefits they derive from the country, but the events of the late war prove the contrary.
It must I apprehend, be deemed by every man who duly considers the subject, extremely unwise and impolitic for the United States to throw such pecuniary advantages as they have done into the hands of Great Britain, who is a known and avowed enemy to their interests and political existence, and the continuance of whose peaceable disposition depending on contingencies, cannot be relied upon.
I entertain moreover an opinion that giving so much of the mercantile interest of the states as is given into the hands of the British merchants, has had, and will continue to have, an ill influence on the policy of the nation.
In republican governments public measures are much under the influence of popular clamour, which is often excited and carried to a great height by men of intrigue. Merchants by their knowledge of men and things—by the weight which property gives them, and by an influence over the minds of the people in consequence of mercantile connections, dependencies, obligations, acquaintance, &c. are better qualified for, and in fact often do influence the people, and excite popular clamour than any other class of men. To give therefore such a weight and importance to foreigners in the mercantile interest of the nation as would enable them by intrigue to injure it in its political views and interests, is in my humble opinion putting the interest, tranquility and safety of the United States at too great a hazard.
If my ideas on this point are just, and I have fairly represented it, the question which naturally arises thereupon is, how this state of the trade of the United States is to be altered and the inconveniencies resulting therefrom to be remedied? In answer to which I would observe that I would not pretend to determine how [Page 56]the measures which I should suggest would be conformable to the treaties of commerce now subsisting between the United States and several nations, but as there is no treaty of commerce between the states and Great Britain, there can be no legal impediment in the way of it with respect to that nation. The measure I would suggest in this case is that no foreigner be permitted to establish a mercantile house in the United States or transact any mercantile business in the states, except as a supercargo or transient merchant, until he shall have first become a citizen agreeable to the laws of naturalization; and that no merchant of the United States be permitted to be connected with any foreign merchant or mercantile house, either as a partner, agent or factor.
The ill effects of such restrictions on account of which objections might be made, I conceive would be that in some of the states the present course of business would be interrupted and the people laid under some inconveniencies in the sale of their produce, and possibly in the procuring their necessary supplies; but I apprehend these inconveniencies would be but temporary; trade would soon settle in a regular channel. In those states where there is a deficiency in their native merchants, there are nevertheless men of integrity and knowledge sufficient to transact all their necessary mercantile business, and if such should need pecuniary assistance there are men of property enough in all the states to support their commercial it terests by affording the necessary aids to their own merchants should such be requisite.
The salutary and beneficial effects of such measures would be that the profits acquired by merchandize would be retained in the country; the improvement of American ships in the freighting business be increased, and the American merchant, seaman and tradesman find employment and support.
[Page 57] IV. To increase the circulating property of a nation, is another intention of commerce, and an object in the general regulations of trade.
As the balance of the trade of the United States hath ever, on the whole, been against them, this maxim or rule, in its application to the commerce of the States, has in view as its first object, the turning the balance of trade in their favour.
The balance of trade being against the United States, distressing consequences have followed. The circulating property having annually been drawn out of the country, has left it destitute of the means of supplying the national treasury; has put it out of the power of the debtor to pay his debts; has distressed and embarrassed the merchant in the prosecution of his business; has reduced real property to trifling considerations in money, and been the occasion of throwing a great deal of real property into the hands of foreigners, from whence has arose an additional prejudicial consequence, which is, that a large sum of money is annually drawn out of the States for rents. To turn the balance of trade therefore in favour of the United States, and relieve them from the embarrassments and distresses which have taken place in consequence of the balance of trade being against them, is an object of interesting importance to their welfare, and demands particular attention, and the most strenuous exertions.
From the first settlement of the country, down to the revolution, there was some kind of necessity for a credit in Great Britain; because but very few articles were manufactured, and at various periods, the produce of the country was not sufficient to furnish the people with their necessaries, without such an anticipation, and as the States were then a part of the British empire, no public injury resulted therefrom. But since the independency of the States, and the separation of their interests from the interests [Page 58]of every other nation, they can depend on no other resources, but what they find within themselves, to counterbalance the injury which they sustain by such a state of their trade.
A question therefore very naturally rises in a consideration of this point, necessary to be determined before we proceed far, and that is, whether the balance of the trade of the United States being against them at this period, is the effect of necessity? For, if it be the consequence of an unavoidable necessity, nothing further need be said about it; it is an evil which must be submitted to, and borne.
This question is to be determined by the decision of another, which, though the same in substance, is a little different with respect to order; and that is, whether the produce of the United States exported to foreign markets, is sufficient to purchase those articles of foreign produce and manufacture, which are necessary for the use and consumption of the people? It is not in my power at present, to make those accurate calculations, which would be necessary to determine the question with precision, but from general appearances, and common observations, I think, we cannot mistake in the conclusion.
When we come to detach from the usual importations of the States, articles of luxury and superfluity in no respect necessary. Articles which are, and might be produced and manufactured, and those which have for years been lying unfold, on which an interest probably hath annually been paid. And when, in addition to these we consider the manufacturing spirit of late excited in the country, we shall find sufficient reason to conclude, that whatever necessity the country may formerly have been under to anticipate their productions, at this time, the produce which is exported, is sufficient to procure in return, every article of foreign produce and manufacture, necessarily wanted by the people, and to leave [Page 59]a balance of considerable consequence. If so, there is no real necessity for the balance of the trade of the United States being against them, and consequently no prejudice could arise to the States, as a nation, or to any individual (except speculators) were their importations, confined within the bounds of their exportations. But even if this was not the case, if the exportations of the States were not fully sufficient to procure every article which may be supposed necessary, the prejudice done to the common interests of the nation by incurring an annual debt, is far greater than any inconvenience the people would be laid under, by any small deficiencies which might happen in their necessary supplies.
Another question arises, which may be necessary to consider; What are the principal original causes of the balance of the trade of the United States being against them? The causes, I conceive to be the monopolizing spirit of the British, and the mercenary views of the American merchants.
The British merchants, well aware of the importance of the commerce of the United States, to the commercial interest of Great Britain, as soon as peace was restored to the two countries, in order to be before-hand of the merchants of other nations, and to engross the trade, immediately established mercantile houses in every part of the States, where an establishment could be made to any advantage, offering at the same time, extensive credit to the American merchants. The merchants of the States availed themselves of these offers, and imported, not only over supplies in necessary articles, but immense sums in costly, superfluous, and frivolous articles of merchandize; so that the country was at once, between them both, over-stocked with necessary, and unnecessary goods.
The inconveniencies, and general injuries attending the first excessive importations after the peace, [Page 60]might have been surmounted, in a great measure, before this day, could importers of goods have stoped where they where, but they could not. Their assortment of goods soon became broken; a large amount lay unfold; and they were deeply in debt. In order therefore, to preserve their custom, to vend their unsaleable goods, and support their business until events should enable them to discharge their obligations, they have found themselves under a necessity of continuing their importations. In consequence of which, the balance of trade hath continued to be against the States.
The importation of goods on credit, I conceive to be extremely prejudicial to the interest of the United States in a variety of particular respects.
1st. The view of the merchant in his importations, having such an indulgence, is to get what property he can into his hands, in order to enlarge his business; he therefore, never consults the interest and necessity of the people, but their humour and vanity, and accordingly, imports such articles as he imagines will please their fancy, and sell to a profit. Hence it is, that very large amounts in superfluous and frivolous merchandize are annually imported, much beyond the necessity and abilities of the people. I know it is often said, by way of palliation, that the people are under no obligation to purchase superfluous and trifling goods, and thereby embarrass their circumstances, let there be ever so many in the country. This is true, and it is equally true that Eve was under no obligation to have received the fruit when offered her. The experience of all countries, and all ages, prove the irresistable power of every kind of temptations. When the merchants therefore, offers the people such kind of goods, as serve to gratify a spirit of vanity and ostentation, offers them at low prices and on credit, which he is obliged to do, in order to get them off his hands, it becomes a [Page 61]temptation too mighty to be resisted; people will accept of the offers, and by that means, contribute to the public embarrassments, by distressing their own interests in such a manner (in many instances) that, as the final consequences prove to be, it would have been much better for themselves, and the public, had such goods never have been seen. 2d. Goods imported on credit, come at an advanced price. The merchants in Europe always in fixing a price on the goods which they fell on credit, consider the failures that may happen, as well as the difference between credit and prompt payment. This on the quantity of goods imported annually into the United States, amounts to a sum of importance. And 3d. As there are but few instances of punctuality in the discharge of debts due from the merchants of the States, to the merchants in Europe, interest takes place—compound interest succeeds, and in many instances, continued so long, that by the time an account is closed and the debt discharged, twice as much property is exported out, as was imported into the country.
Notwithstanding these obviously prejudicial circumstances, which attend the importation of goods on credit, it is strenuously insisted on by many that credit is of advantage, as it facilitates commerce.
There are circumstances, I will admit, which render credit not only not prejudicial, but advantageous. Domestic credit for instance, is no way detrimental to the interest of the public, because the property still remains in the nation, and it is very often of benefit to the interest of individuals. Foreign credit also is of no disadvantage, and often of public benefit, provided the property obtained on credit can be, and is improved in the advancement of an interest at home, whereby the debt can be discharged, and a profit saved; or in the prosecution of some other foreign business, productive of advantages sufficient to counterbalance the disadvantages attending [Page 62]the credit. The balance of the trade of Great Britain with some nations, is against her; but, as the property obtained on credit is made use of, and applied to the advancement of some profitable interests, [...] which a profit is secured, it is so far from being an injury, that it contributes to national emolument. But to argue from hence, that the United States derive an advantage from being credited with European manufactures, which are articles of use and consumption, which are incapable of improvement, and which are not applied to the advancement of any other profitable interest; and this credit to a greater amount than the productions of the country for exportation, to me, appears the heighth of absurdity and false reasoning.
From these brief and desultory remarks, I think we may rationally draw the following conclusions, viz. 1st. That the balance of trade being against the United States, they are (as a natural consequence thereof) greatly embarrassed and distressed, both in their public and private interests, and therefore, to alter this state of trade, and turn the balance in favour of the States, the most effectual measures of government should be adopted, together with the patriotic exertions of the people. 2d. The balance of trade against the states is not the effect of necessity. Their productions for foreign market being fully sufficient to procure every necessary article or foreign produce and manufacture. 3d. The balance of trade against the States, originates in the private, mercenary views of the merchants, and is supported by the vanity of the people. 4th. So long as the British merchants are permitted to introduce whatever kind and quantity of goods they please into the States, and the merchants of the States to import goods on credit, without restraint, so long will the balance of trade remain against them. For the monopolising spirit of the British, and the speculating spirit of the [Page 63]American merchants, would forever overrun the resources and productions of the country, let them be what they will. And 5th. On the whole we may draw this further conclusion, that as there are so many powerful, private interests and motives opposed to the true interests of the United States, in their trade, some decided measures become necessary to confine their imports within the bounds of their exports, and to turn the balance of trade in their favour.
Several measures which might be taken would conduce to this end, and be attended with great and good effects; such, as the encouragement and support of industry, oeconomy and the useful arts; a discouragement on the use of foreign luxuries and superfluities, and a prohibition on the establishment of foreign mercantile houses. But after all this, one great cause of this national evil would still remain. Suppose then (I propose it as a matter of question) the national legislature should pass an act of this nature, viz. that from and after the term of five years, no debt contracted in Europe, for any kind of manufactures, should be recoverable by law in the United States? What would be the probable effects of such a law? Would it not stimulate the people to exertions in the manufacturing business? Would it not excite those who are concerned in the European trade, to make such preparations and arrangements, as to admit of the operation of the law without inconvenience? And would not the idea of such a law taking place at a fixed time, produce such exertions and preparations, as to render the execution of it unnecessary? I should suppose such would be the effects, and I should imagine also, that no prejudice of either a public, or private nature would take place in consequence of it. For I think every man who considers the subject with any degree of attention, must be convinced that the productions of the country are sufficient, and more than sufficient to [Page 64]procure the people every necessary of foreign manufacture, and that all that is necessary to reduce the importations of the States, within the circumference of their exportations is, to alter the present course of the mercantile business.
Whether such a law in fact, would be the most elegible and proper to answer the necessary purposes, I will not take upon myself to determine; but I would observe, that a desperate political evil, like a natural disorder, requires a desperate remedy, and on that ground, if no other, justifiable. To turn the balance of trade in favour of the United States, is a matter of the utmost consequence to the future welfare of the nation; and could this point be once fixed, importations restrained within the compass of exportations, it would lay a foundation for the rapid increase of national wealth: For, if the States could once get rid of the expence of advance prices on their goods imported, of an interest which is annually added, and of the inconveniencies which they suffer on account of the sums of money which are annually drawn out for the rent of real property. If, in consequence of such restraints, the exertions and oeconomy of the people should render a foreign credit unnecessary; and the merchants were to arrange their business in such a manner as to export the produce of the States to the most advantageous markets; to purchase returns of the necessary kinds, at the lowest prices, and with the fewest incidental expences, the advantages would not stop at any one point, but be continually progressive.
Besides this, there are other measures which would tend to increase the wealth of the nation. One of which is, to secure the benefit of the freighting business, as far as it can be done consistent with the existing treaties of commerce, and the circumstances of the several states.
[Page 65] A nation derives many benefits from commerce, but all the real profit which accrues by its trade, consists in the freights made by its vessels; the advantage which a merchant makes in the sale of the produce of the country in foreign markets, is seldom more than sufficient to pay the freight and incidental charges; and the profits which he makes on returns are drawn from the people and not from any other nation. It adds nothing to the common stock; but freights outward, admitting a cargo, sells for sufficient profit to pay the freight, which is always to be supposed are drawn from the consuming nation and becomes an accumulation of wealth to the nation the vessel freighted belongs to; and freights home, if by the vessels belonging to the importing nation altho' they are ultimately drawn from the people, yet the amount is retained; whereas if freights home are performed by foreign vessels, the amount is drawn out and goes to the emolument of a foreign nation. The freighting business therefore is an object of consequence to the United States and merits particular consideration.
From a false idea of freedom in trade, and considering it as the foundation of national wealth, the states have thrown the doors of their commerce open to all nations without limitation or restriction, the consequence of which hath been the loss of freights to their vessels, together with all the essential advantages of commerce. The United States have given greater indulgencies to foreigners in their trade than (I believe) are granted by any other nation. They permit a foreign ship to freight into their ports cargoes not only of the growth, produce and manufacture of the nation or country to which they belong but of any other nation whatever. They permit also foreign ships to freight out not only to the nation to which such ships belong and their dependencies, but to any other nation or country, whereby the trade [Page 66]to divers free ports opened for the reception of American produce and the benefit of the United States, hath fallen into the hands of foreign, particularly British merchants, in a considerable degree, and become a new acquisition to the commerce of Great Britain. Besides these, the states have indulged the British nation so far in its illiberal and monopolizing humour as to permit it an unlimited, undefined and exclusive right to the enjoyment of all the advantages and emoluments of the trade between the United States and the British West-India islands.
Upon a conjectural calculation the freights between the United States and the British dominions in America, amount to more than 100,000l. annually, and from the southern ports three quarters of the freights between this country and Europe is performed by British vessels, together with a large proportion out of the northern states. One third of the value of the produce thus freighted probably goes to the emolument of Great Britain under the denomination of freight, insurance and incidental charges.
To retain the advantages of the freighting business and to render it one means of increasing the wealth of the nation in such ways and methods as in the best and most eligible manner would accommodate the interests and circumstances of the different states, will I conceive, be attended with no small difficulty, for which reason I feel a diffidence in saying any thing on the subject; but as I have begun, I will proceed and give you my thoughts thereon; and in order to come at the most rational conclusions on this point, I would state two or three facts.
1st. The United States have not ships at present sufficient to freight the whole of their productions to market: but with what ships they already have they might freight much more than they do; and in three years time they might increase the number of their ships to such a degree as to be able to freight the [Page 67]whole of their produce should sufficient encouragement and support be given.
2d. There are American ships already built sufficient to freight into the United States every article of foreign produce and manufacture necessary for the people; and this service they would perform were it secured to them, at least as far as treaties of commerce would admit of.
3d. The British West-India islands, Bermuda, &c. are dependent on the United States for many of their necessary supplies. This dependence is founded in nature, and will exist as long as the countries exist.
From this brief statement of a few facts I would observe, 1st. That as there are not at this time American ships sufficient to freight the whole of the produce of the United States to the European markets, I conceive it would not be to the general interest to prohibit the freighting of foreign ships, and I am much at a loss to determine in my own mind, what judicious measure could be adopted, to give a proper preference to American ships in the freighting business. If any extraordinary impositions should be laid on British vessels, it would only produce retaliating measures, and if a tax was laid on the freighter of a British ship, it would be a real hardship in all such cases, where American ships could not be obtained; so that it appears to me, no positive preference by law can with propriety, or to public advantage be given. It must, I think, be left to the patriotism, and at the option of the people. But I conceive, such regulations as tend to destroy those connections which blend the commercial interests of Great Britain, with those of the United States, and to give the mercantile business into the hands of the merchants of the States, would at the same time, destroy the original cause of the great preference and employment which has been given to British ships, in the trade between the two nations. American merchants, having no [Page 68]connections of interest with the merchants of Great Britain, would naturally give a preference to American ships. An imposition of duties on British ships I conceive, ought to be regulated by the laws of Great Britain; for extraordinary impositions and their consequent retaliations, have neither end nor bounds.
One measure which appears necessary to be adopted is, that British ships from Great Britain, or Ireland, should be permitted to freight out of the United States to those kingdoms only, and to no where else; because, if they are permitted to freight even to their own American dominions, it would destroy the effect of such regulations, as I apprehend, will be found necessary, respecting the trade between the States and the British dominions in America; and because by circumscribing the freights of British vessels in such a manner, other freights, which are now taken up by those vessels, will be reserved for the vessels of the United States.
2d. As the United States have now, and probably always will have vessels sufficient to freight into them every necessary foreign production, the freights of foreign vessels into the United States, should be confined to the produce and manufactures of those nations, to which they respectively belong. This would give some advantage to the navigation and trade of the States; for hitherto, foreign, particularly British vessels, have freighted quantities of merchandize from various ports of other nations, whereby the freighting business of the States is greatly injured and not only the freighting interest in particular, but the mercantile interest in general; for, by this indulgence, such quantities of many kinds of merchandize are at times introduced, as to reduce their price and render them unsaleable, whereby the merchants suffer great inconveniencies, and heavy damages.
[Page 69] It is thought by many, I am sensible, that a great influx of goods into a country, and their consequent low prices, is of public benefit. For my own part I think otherwise. The diminution of the prices of goods, is the occasion of a proportional larger consumption, very often to the extreme of licenciousness, so that it seldom happens, that the amount of the general expenditures of a nation, is much lessened by goods being sold at a reduced price. Besides, the merchant must be essentially injured thereby, which I conceive is as prejudicial to the interest of a nation to do, as to injure the agricultural, or manufacturing interest. With equal propriety, might the merchant and mechanic affirm, that the interest of the nation was promoted by the value of the productions of the field being reduced in such a manner, that the husbandman could not support and keep his interest good, as that the husbandman should assert the nation was growing rich, because imported goods were so reduced in price, that in consequence of it the merchant could not support this business. The mercantile interest is of importance to a nation, and equally a support to agriculture and manufactures, as they are to commerce. Those foreign sources therefore of our supplies, whereby the freighting business of the vessels of the United States is interfered with, and the merchants injured in the sale and price of their merchandize, I conceive ought to be cut off by prohibiting the importation of the produce and manufacture of any foreign nation or country, by a foreign vessel, except those that belong to the nation where such commodities are produced and manufactured.
3d. As the British islands in America are dependent on the United States for a variety of their necessary supplies, and as this dependence is founded in the nature of things, the States undoubtedly, have it in their power to prescribe the mode in which they shall obtain supplies from hence. If Great Britain [Page 70]should continue to refuse a treaty of commerce, and the admission of American vessels into those ports, the States would have a right, as well as good reason, to take such measures as eventually to produce a treaty, or secure to themselves equal advantages in the trade.
Should the United States prohibit the exportation of those articles of produce, which are suitable for the British West-India markets, in British bottoms, I apprehend they would be under the necessity of procuring their supplies from those ports, where American produce in American vessels are permitted. This was their mode of obtaining supplies before the last prohibitory orders of the British ministry were issued, and had it not been for the imbecility of the American government, they never would have been given; or if given, would not have taken effect. And I conceive it to be a matter of very little or no consequence to the commerce of the States, whether they freight their produce to, and deliver it in St. Eustatius, or St. Christophers, a freight is equally secured, which is the great object.
But, as the southern States make a great dependence on British merchants and vessels, to purchase and carry off their produce, and as a total prohibition in this case might lay them under some temporary inconveniencies, I would suggest, whether to lay British vessels from the West-Indies, &c. under the same restrictions that are laid on American vessels going to Turk's-Island for salt, could not be proper, and as well adapted to the interest and circumstances of the States, as any measure that would be proposed. An American vessel is admitted at Turk's-Island in ballast only, paying a tonnage of two shillings and six-pence sterling.
I apprehend, if such a resolution should be laid, some vessels would import money for the purchase of their cargoes; at the same time, it would diminish [Page 71]the number of British vessels in the American trade, and open a door for the introduction of American vessels into the business, without producing any immediate consequences, which might be the case, should the present course of business be violently, or suddenly interrupted.
It is, that the full effects of such a restriction might be produced, that I conceive British vessels from Great Britain and Ireland, should not be permitted to freight out of the States to the West-Indies, &c.— Again,
It appears to me to be extremely impolitic, and much against the interest of the United States, to contribute to the support of rival interests, which, in some instances, they have hitherto done.
Nova-Scotia is so situated and circumstanced, that it is capable of rivaling the United States, in their ship-building and whale-fishery, with the supports which it derives from them; but without such supports, I conceive, those interests would never flourish in that province.
Ship-building in the United States, both for their own service, and foreign markets, is an object of importance, and an interest, which merits support and protection: They cannot therefore, with any reason, or regard to their own interest, supply the deficiencies of other nations or States, in such a manner, as to enable them to prejudice this interest. Nova-Scotia has some advantages, and natural resources, well adapted to the interest of ship-building, yet, it is dependent for iron, carpenters and provisions, particularly flour, for the support of this, as well as other interests. Some carpenters, and some provision may be had from Great-Britian and Ireland; but iron, and a full supply of carpenters, as well as provisions, are drawn from the States.
The States it is true derive some present advantages from supplying Nova-Scotia with provisions and iron; [Page 72]and it may be a matter of question, whether the advantages or disadvantages are the greater? To this I would observe, 1st. That Nova-Scotia is a neighbouring rival power, and its inimical disposition towards the States avowed, and universally known. To contribute therefore to the increase of this power, and render it the more able to assist in disturbing the tranquility, and endangering the safety of the States, appears to me to be impolitic, and of sufficient weight to supercede considerations of a trifling pecuniary advantage. 2d. If ship building in Nova-Scotia does not exceed its own service and employment, no prejudice will result to the States therefrom: But if by the supplies of carpenters and provision received from the States, the price of labour should be so reduced as to enable that province to build cheaper, and obtain a preference on that account in the sale of ships, the States would be prejudiced, and for that reason should prohibit such supports. This however, on the whole, considered independent of and detached from other interests, might admit of a doubt in the minds of some; but when we add to this the whale fishery, which flourishes in Nova-Scotia, by the supports in men and provision received from the States, I think it must manifestly appear that the interests of the United States are injured by the supplies afforded to that province.
The whale fishery is an interest of importance to the States: It employs a great number of people; produces a considerable annual sum out of the sea, and always hath brought into the country large sums in money. The little island of Nantucket, unimportant in itself, contributes as largely to the wealth of the nation as any spot of ground of its bigness in the United States, perhaps more so. It hath formerly employed about two hundred fail of vessels; supported from four to five thousand inhabitants, and produced at a moderate computation, about forty thousand [Page 73]pounds sterling annually, wholly by this business. At present the business is not so great, but is increasing; and might with suitable encouragements and supports arrive at and exceed its former importance.
Great-Britain before the revolution was the best, and indeed the only market this country had for its oil. But in order to suppress the interest of the States, and to support Nova-Scotia in its rivalry, Great-Britain, since the peace, has charged oil imported from the States with such a heavy duty, as to render the market unprofitable. The continuation of this imposition; and other discouragements on the consumption of oil imported from the States into Great-Britain, I apprehend, depends principally on one circumstance, which is this; If the whaling business in Nova-Scotia should bid fair to arrive at something of consequence, these discouragements will be continued; but if it should dwindle into insignificance, they will be removed; for Great-Britain, if I am not mistaken, is under a necessity of completing its supply of oil from America; at least I know of no other foreign resources. And whether the whale fishery in Nova-Scotia flourishes or not, I apprehend depends on the views and measures of the States. Should they prohibit the exportation of provision, and the emigration of whalemen to Nova-Scotia, I conceive it would reduce it to a state of unimportance.
Some provision it produces, and some it may import from Europe; but these supplies are precarious and inadequate to the support of a great number of seamen and mechanics. Flour in a particular manner in Nova-Scotia is dependent on the States for. And,
The knowledge necessary to prosecute the whale fishery to advantage, is on this side the Atlantic, confined to the people of the United States. Without a support in whalemen from the States, Nova-Scotia would fail in this business. It is now carried on by the people from the States, and for its future support [Page 74]and increase every artifice is made use of to draw whalemen away to that province.
Whether it would be to the interest and advantage of the States to stop these supplies, may be fully determined, I conceive, by one consideration only.
The only advantage the States derive from supporting the whale fishery in Nova-Scotia, consists in the sale of a little provision. Let us see what this amounts to. If that business should fail in Nova-Scotia, a great part of the whalemen now employed there would probably return again to the States. The consumption of provision would therefore be still the same. Besides, a whaleman's annual industry may be computed to amount, on an average, at thirty pounds sterling; his consumption of provision at not more than ten pounds. The States therefore would acquire twenty pounds benefit by every whaleman supported in them, which they deprive themselves of by supporting them in Nova-Scotia. From this consideration it is evident that the United States injure themselves much, in contributing to the support of the whaling business in Nova-Scotia. And on the whole, when we consider the amount of the benefits that the States derive from the supplies which they afford to Nova-Scotia, in mechanics, whalemen, provisions, &c. and on the other hand, the prejudices resulting therefrom to the interests of the States, by their rivalry in the whale fishery, and in ship building; and in consequence thereof, the increase of a neighbouring inimical power, we shall find the advantages to bear no proportion to the disadvantages.
The United States, it is true, have no right to interfere with the advantages which Nova-Scotia derives from its government, situation and natural resources; but they undoubtedly have a good right to withhold such supports as would enable Nova-Scotia to injure them.
[Page 75] Besides these, Nova-Scotia derives other supports from the United States, which I conceive is prejudicial to their interests. Fish of all kinds have been imported into the United States from that province: This is manifestly wrong, because it deprives the cod fishery of the United States (which is an important interest) of so much support that ought to be given it, and contributes to the support of a foreign interest, for which no good reason can be assigned. The importation of fish therefore of every kind from any foreign nation or country into the United States, I conceive should be prohibited.
The West-India trade also, of Nova-Scotia, is greatly supported by the United States, particularly by the supplies of lumber which it receives from them. This is impolitic, because every cargo of lumber furnished Nova-Scotia, deprives the States of a freight. But this will probably be considered in the regulations of trade between the United States and the British West-India islands. If it should be found proper to admit British vessels from the West-Indies, Bermuda, &c. in ballast only, for the purpose of taking cargoes out of the States for those islands, the same reasons for this permission I do not think will hold good with respect to the supplying Nova-Scotia with cargoes for the support of its navigation, because it interferes with the navigation of the United States. In short, as the United States want nothing from Nova-Scotia, and Nova-Scotia wants nothing from them, but what in point of interest or policy is injurious to supply them with, I can see no reason for continuing any commercial intercourse with that province.
Furthermore—The States have a rival in their navigation, where from the natural state of things, it could not have been expected.
Formerly the States were carriers for the West-India Islands; but the table is now turned, and the West-Indies have become carriers for the States; and [Page 76]from the support which the British merchants receive by the sole enjoyment and benefit of the trade between the two countries, they are enabled not only to purchase and improve, but to build vessels. Many have already been built, and many more are on hand.
This is an object worthy of attention; for it would be much against the true interest of the States, and contrary to the natural order of things, for them to contribute to the support of ship building, and the interest of navigation in the West Indies.
V. A basis on which to establish a national revenue, is one public advantage of commerce; and a material object in the general regulations of trade.
Much money is required by all governments for national services. The safety and welfare of the nation, and a due administration of justice, cannot be provided for and supported without. And although individuals may, and often do grudge the money they pay to the public, and consider it a kind of oppression, and so much money thrown away; yet, they should consider that the security and support of private interest, depends on the support and protection of the general interests of the nation; and therefore, whatever money is required for and applied to these purposes, is but a contribution to the private interest of individuals.
Did the people rightly consider this; did they thoroughly understand the intimate connection and mutual dependence subsisting between the general interest of the nation, and the private interest of individuals, it would reconcile them to the necessary regulations of commerce, and to any judicious system of revenue which was calculated to draw money from them for public services, upon principles of justice and equality, and in eligible rational modes.
But it is necessary that the demands of government be proportionate to the abilities of the people, and the quantity of money in the nation. If a nation possesses [Page 77]no money, it is certain none can be collected—if there are but five millions of dollars among the peoples, it would be in vain to require ten millions. If the rich only have money, the rich only are to be applied to. Government in short, must require money from those who have it, and that in proportion to the quantity which the people may be in the possession of. And it is necessary also that government should raise money from the people in such modes, and by such methods as are equitable, eligible, and not oppressive.
This country in most of its parts has been accustomed to raise public money by a direct tax on real property, which, when the expences of government were small, and the taxes but trifling, the oppressive nature of this mode was scarcely felt by any; but since the expences of the United States have arose to a considerable magnitude, it has operated with great inequality, and in many instances, extremely oppressive and distressing.
That the people should pay in proportion to the real and visible property which they respectively possess, appears to be a fundamental and governing principle in the doctrine of taxation, without considering whether it is competent, or more than competent to the original design of property, which is the comfortable subsistence and support of the proprietor and his family. Every man is entitled to this benefit from his property, in preference to every other consideration. If this be just, it will follow as a necessary consequence, that to lay a heavy tax on the property of those who derive no other benefit from it than a bare subsistence, and that perhaps not a comfortable one, is oppressive and distressing on such individuals. Whether it be just or unovoidable is a matter of further consideration.
The inhabitants of most countries, are, with respect to property, divided into three classes: The rich, the middling, and the poor.
[Page 78] The rich are enabled to live in ease, and add nothing to the wealth of a nation by their own labour; and in proportion to the value of their property, are able to add an annual sum to their original stock, besides supporting themselves and families in affluence. The rich however, are not a useless unimportant class of citizens. They are able to establish and carry on many kinds of business of public advantage and utility, which those in middling or low circumstances could not do. But at the same time, the immediate advantages and profits of such kinds of business go to the emolument of the rich man. The rich also are of advantage to the public, as they are enabled to give employment and support to the poor—those who have nothing to depend on for a livelihood but their labour. But then, the property of the rich derives as great or greater advantage from the labours of the poor, as the poor acquire to themselves.
The middling class of people, those who have some small property, by their industry and frugality procure a support for themselves and families—some but a scanty—some a comfortable support, and some perhaps may add a small sum to their property annually. This class of the people are the most numerous, and promote the wealth and strength of a nation, by cultivating and improving the face of the country, and by populating it with a hardy race of industrious citizens, while in general, the only benefit they derive from their property and labour, is a bare subsistence and support.
The poor, as they are wholly dependent on the rich for employment, so the rich have it always in their power to fix the price of the labour of the poor; and if we consider the condition of the rich, and take the trouble of looking into the houses of the poor; observe their subsistence, their clothing and general mode of living, we shall find convincing evidence, that the profitable parts of the labour of the poor are accumulated by the rich.
[Page 79] If this be a just representation; if the middling class of the people accumulate little or no wealth by their property and labour, and if the profits of the labour of the poor are accumulated in one way, and in another by the rich, then I think it may be rationally concluded, that on the principles of justice, the rich are to be applied to by government for money, for the services of the public, to the relief, if not to the exoneration of the other classes of the people.
There are many within the compass of my knowledge who have a small property, which to be taxed in proportion to the property of many rich people, according to the common rules of apportionment, would produce a considerable sum, equal in some instances to what is received from many other people worth ten times as much. This is unavoidable in the common modes of taxation; for no general rule can be devised, to apply to the various kinds and different value of property with equality; and some kinds of property in some circumstances cannot be touched. Such modes therefore which operate with inequality, and are productive of distress on particular classes of the people, must be considered as erroneous in their principles; and such I conceive are the modes of taxation generally established in the States.
To more fully explain and illustrate my ideas on this point, I will propose a case which I believe is much more than a supposeable one.
A. has a property in lands and stock of the value of five hundred pounds, on which a tax is laid of ten pounds. This property with his own labour produces a comfortable support for himself and family, and nothing more, which we will suppose amounts to one hundred pounds. B. has a property of the same kind, worth five thousand pounds, on which a tax is laid in the same proportion of one hundred pounds. This property, with an equal proportion of labour, will produce one thousand pounds, which is nine [Page 80]hundred pounds more than sufficient to support his family, in the manner A. supports his. The additional expence of labour, necessary to be performed on the larger estate, we will compute at four hundred pounds, which leaves a nett profit of five hundred pounds. From this state of the case, which I believe is just, it appears that B. could pay five hundred and ten pounds into the public treasury, with as little prejudice to his interest, as A. could ten pounds. But, by the common rules of assessment, he pays only one hundred pounds, by which A. sinks ten pounds of his property annually, and B. adds four hundred pounds to his. This is the general operation of the common modes of taxation, and methods of raising money for public services, adopted by most or all the States, which on account of their inequality and oppressive consequences in their application, ought to be condemned.
There is an instance which occurs that further illustrates this point, and in my mind places it in a striking point of light. This was the sinkage of the continental money.
I think it must appear evident to every one, that had that money been sunk by a tax on real property, in the common modes of taxation, the property of seven-eights of the people, or at at least a very great proportion, would have fallen into the hands of the other eighth: But by its sinking as it did, those people who had acquired it by exorbitant profits, without affecting their real property, paid it without being distressed. Some instances it is true there were of injustice and oppression taking place, in consequence of the depreciation and final sinkage of that money; but these were so few in comparison with what would have happened by its being sunk by a tax on property, that on the whole it must be considered as the most just and eligible mode that could have been devised to pay that debt.
[Page 81] Because therefore, no general rule of assessment can be so calculated as to apply with propriety and equality to the property of the people, without producing numberless instances of oppression and distress; the necessity of resorting to other methods of raising public monies, appears obvious; and among other proper ways and means, a tax on articles of importation is evidently one. By this, application is made directly to the pockets of the rich; the amount of the money paid to the public is optional and voluntary; the effect is not sensibly felt; and it is also the most summary, eligible and sure method of collecting money for the services of the nation.
A tax of this kind, and to be considered by government, as its principal resource would, in my humble opinion, go farther towards the peaceable and firm establishment of the new form of government, than all the revisions and amendments, which could render the constitution more perfectly agreeable to the ideas of the opponents; for I know of nothing more really feared by the most numerous part of the people, than heavy taxes on their property, and for this reason with others, I conceive the government will consider an impost, with the addition of an excise, its principal, if not only resource, and never attempt a land tax, except in cases of special emergency.
But, as an impost on foreign articles imported into the United States, may, and I conceive, ought to be so calculated, as to answer a variety of beneficial purposes besides supplying the national treasury, which I at first took notice of; I would beg leave to explain and illustrate my ideas thereon, by enumerating a number of imported articles, annexing thereunto a proportion of duties, upon the principle. I have all along proceeded upon.
Rum, brandy and geneva, per. gallon, 1s. Madeira wine 3s. claret, 1s. other wines, arrack, hock, &c. in [Page 82]that proportion; Hyson tea, 3s. per lb. Bohea tea 3d. other teas in proportion; brown sugar, 1-2d. per lb. coffee, cocoa and pimento, 1-2d. per lb. molasses, 1-2d. per gallon; Lisbon lemons, 1s. per hundred, other fruit in that proportion; salt, 2d. per bushel; iron shovels and spades, 9s. per dozen; gun powder, 6d. per lb. sweet oil,
ARTICLES at 15 per cent. on prime cost.
Gold and silver lace, gold watches, embroidered cloth, looking glasses of more than 30s. value, confectionaries, perfumeries, lotions, wash balls, ostrich feathers, artificial flowers.
ARTICLES at 10 per cent. on prime cost.
Silver, pinchbeck and shagreen cased watches, china ware, carpets, cambrick, lawns, muslin, gauze, catgut, &c. silk and thread lace, silk cloth and hosiery, ribbands, chintz, money scales and weights, coffin furniture, marble slabs, grind-stones, brass and polished steel dogs, tongs and shovels, ivory and plated handle knives and forks in cases, japaned servers, ivory sticked ladies sans, Morocco pocket books, &c. brass and plated candlesticks, brass sire fenders, brass and glass sconces, costly coat and vest buttons, snuff boxes of more than 1s. prime cost, prints, raisins, currants, figs, prunes, almonds, olives, capers, anchovies, ketchup, &c.
ARTICLES at 5 per cent. on prime cost.
Cotton manufactures, except chintz, glass manufactures, excepting looking glasses of more than 30s. prime cost, silk handkerchiefs, silk thread, writing paper, iron, brass, copper, steel and pewter manufactures, excepting such as are otherwise enumerated, shot, fire arms, earthen ware, or porcelain, excepting china, stone and other seals.
ARTICLES at 2 1-2 per cent on prime cost.
Linen, woollen and hemp manufactured cloths, and hosiery, linen thread, German steel, books and stationary, not before particularly enumerated, including maps, draughts, &c. spectacles, watch chains, chrystals, faces and keys, stone, and paste, bolting clothes, bone and ivory combs, spices, drugs and medicine.
In this enumeration and arrangement, I have not aimed at precision, or a great degree of certainty and regularity. What I had principally in view, was to explain my own ideas, respecting the purposes a duty on articles of importation may be calculated to answer, which are 1st. To draw money from the rich and opulent for public uses. 2d. To lessen the two general use of luxurious, unnecessary and trifling articles of foreign production. And 3d. to encourage and support the manufacturing interest of the United States.
Neither have I aimed at a full and complete enumeration, nor am I positive with respect to the propriety of the arrangment, for I do not think my information, relative to the present state of the manufactures, is competent to determine with certainty the rate, or amount of duties which would be proper to be laid on several articles in order to give the necessary support, and at the same time, the best adapted to the circumstances of the people. But I conceive, a duty on articles of importation, formed and established on the principles here held forth, would be productive of essential advantages to the interest of the nation.
The adoption of the ideas here suggested, in forming a system of revenue and commerce, may probably, with sufficient reason be found, on examination to be improper. They may prove to be absurd; or if not absolutely absurd, yet objectionable, on many [Page 84]accounts, particularly as they may appear to have a tendency to circumscribe commerce within too narrow limits. For my own part, I have no idea of circumscribing trade (properly directed) with regard to its extent, but of confining it to proper channels, and directing it to proper objects; and if I have mistook the most suitable measures to answer these purposes, I have missed my intention. But I must as yet, continue to think it a mistaken idea which many entertain, that trade is the foundation of national wealth, and that to extend it to extreme lengths, and carry it on in every possible way in which it may be prosecuted, promotes the interest of the nation, or finally will promote the interest of individuals.
Agriculture and manufactures, I consider as the sources and foundation of national wealth. Commerce the handmaid, or medium, by which the surplus productions of agriculture and manufactures are turned to the best account, and rendered in the highest degree advantageous and profitable. Commerce therefore, cannot exceed the bounds which agriculture and manufactures may affix, without injuring the general interest of the nation, and without prejudicing the interest of the merchants.
The United States, since the revolution, have fully experienced the licentiousness of trade, and can witness the ruinous and distressing consequences of it. They, as a nation, have suffered a great diminution of property; and if we consider the number of bankruptcies, the languishing state of trade, and the great complaints of the merchants throughout the States, we shall find sufficient reason to conclude, that but very few have made trade as beneficial to themselves as their hopes flattered them it would.
Such a regulation of trade therefore as will tend to restrain its licentious operations, as will tend to support the mercantile, agricultural and manufacturing interests of the United States and render it subservient [Page 85]on the whole to the general welfare of the nation, must necessarily promote the particular interest of those who are concerned in trade.
Foreign merchants and speculators may be frustrated in their views thereby, but I conceive that to be a consideration not of sufficient consequence to the interest of the United States, to supersede considerations and measures of national utility and advantage.
Speculators belonging to the states, and those who are inclined to quit a business in which they have been educated in order to commence merchants and traders may also be disappointed in their wishes and expectations; but this is not an object of public attention.
If my ideas are just on this point, an increase of merchants and traders in a nation beyond what is necessary to transact its mercantile business and what can obtain a support by it, is on the one hand of no benefit to the nation, as the stock of national wealth receives no augmentation therefrom; and on the other is essentially prejudicial to the commercial interest.
Regularity and a good degree of permanency in the mode of business and the prices of merchandize, together with honorable dealing and punctuality, are essential to the support of the interest of commerce, to a national reputation and general confidence, and on the whole to the prosperity and advancement of the commerce of a nation; and I know of nothing which tends to destroy such a proper order of things in trade and to introduce confusion, perplexity and embarrassment into the mercantile interest than supernumeraries in the business; for which reason I conceive that altho' it is not consistent with the principles and spirit of a free government, to lay prohibitions on persons entering into any lawful business for the purpose of obtaining a livelihood; yet that the commercial regulations should not be so calculated as to encourage [Page 86]more people to enter into trade than is necessary to perform the business of merchandize to the advantage of the public, and to the benefit of those who are occupied therein.
Thus, sir, have I communicated in as brief a manner as I could, my ideas and sentiments on the agriculture, manufactures, and commerce of the United States, as they are connected with a national revenue; together with some of those measures, which appear to me necessary to render them reciprocally beneficial to each other, and mutually subservient to the welfare of the nation. In all which I have no pretensions to infallibility. They are the result of my own reflections on the subject, and I give them as a contribution to the general stock of speculation.
The first [...] which the system of revenue and commerce, at first adopted and put in operation by the national legislature, may make on the minds of the people, will be attended with important consequences. If it be such as will commend itself to the good sense and judgment of the people, such as shall appear to be sounded in reason and good policy, it will be approved and supported by them, notwithstanding it may be particularly more unfavourable to the interest of some individuals than others. It will stop the mouths of gainsayers to the constitution, and contribute most essentially to the peaceable and firm establishment of the national government. But if it should be with reason objectionable, either in its principles, or effects, it may create a general uneasiness, and give the opponents a great opportunity to disturb the public peace, by exciting jealousies, and instigating popular clamour. And as the subject is capable of being exhibited in various points of view; as various conclusions may be drawn; and various measures proposed; so I conceive some advantages in framing the most perfect system, may be derived from every representation, and every proposition [Page 87]which can be made. Some new light may be thrown on the subject thereby; some new hint suggested, which may serve as a clue, to the fullest and clearest investigation, and lead to the most judicious conclusions.
With these views, and to this end, I have prevailed on myself to communicate my sentiments and observations; and, if they should be found worthy of notice—if any thing capable of improvement, my most flattering hopes will be fully answered. If not, I shall always enjoy the consolation of reflecting, that the United States do not want my warmest wishes, for their happiness and welfare.
I have already intruded too far on your patience; but I would nevertheless, beg leave to add a few transient and unconnected observations further, relative to the POLICY of the United States.
AN EXCISE.
I HAVE before observed, that to lay a heavy tax on real property, and to make it the principal resource of government, ought, if, possible, to be avoided. Many, I am sensible, are of opinion, that an impost will be inadequate to the necessities of government; yet, I must think, that most of the money which could be drawn from the people with convenience, might be drawn in this way; but at the same time, as one general principle which I have all along aimed at supporting, would not have its weight and full effect without an excise, I apprehend it ought to be included in the system of revenue. The principle I allude to is, that the luxuries, superfluities, &c. made use of by the people, should be considered and taxed as a proper medium of revenue.
It is an opinion which I have long entertained, that there are vices, follies, extravagancies and vanity [Page 88]enough in all nations, to support their necessary expences, were they properly applied to, without taxing industry and other national virtues. And as many of the superfluities, &c. made use of by the people, are of the manufacture of the United States, and many other proper objects of taxation, not within the limits of an impost, a system of revenue would be imperfect were these not to be taxed by way of excise, or be charged with a tax of some denomination.
And I am of opinion also, that an excise should not be laid on any imported article; because, all the tax which ought to be laid on these, might as well be collected at their entry, as to be at further expences in collecting an additional duty.
I would therefore, suggest the following particulars, as proper objects of taxation by way of excise. This country distilled rum, brandy, geneva, whiskey, cordial waters, &c. snuff, tobacco, loaf sugar, gold and silver plate, jewellry, playing cards, hair powder, &c. The amount of a tax on these, to be in proportion with the impost on the like classes of foreign articles, so as to put them on an equal footing.
And I would suggest also, by way of quere, whether a tax on licences granted to attorneys at law, to practice in the national courts, would not be proper and consistent with the principles here held forth.
I would furthermore propose livery servants, carriages, race-horses and packs of hounds, as proper objects of taxation.
As the exportation of the manufactures of the United States should be encouraged, so such an excise may have been paid paid on, and afterwards exported, should be entitled to the benefit of a drawback; and the same benefit also, ought to be extended to articles imported, on which a duty hath been paid, and which may be afterwards exported out of the States.
THE NAVIGATION OF THE UNITED STATES.
THE importance of navigation to a nation, is too great to escape general notice; and as there is no nation which has the resources and natural advantages to support an extensive navigation, and at last, to obtain the empire of the sea, that the United States have, I conceive, a foundation ought to be laid as early as possible for the support and increase of their navigation.
The resources of the States, and the enterprising spirit of their citizens are known by most of the maritime powers of Europe. They know the States can build, equip and navigate, and consequently can freight cheaper than any nation in Europe. And they are sensible, that by an encouragement of the navigation of the States, a foundation would be laid for such a maritime force, as to endanger their American dominions. It is, I conceive, for these reasons among others, that Great Britain in particular, is taking the most decided measures in its power, to suppress the navigation of the States. And it is for this reason also, that the States, ought to exert themselves, and take the most effectual measures in their power, for the support of their navigation, and of their right with other nations to the occupancy of the seas.
No vessel therefore, should be imployed in the navigation of the United States, but those which are built in them; and navigated by the master and greater part of the crew who are citizens, or American subjects. And for the prevention of fraud, and uncertainties, with respect to the build, owners and crew; the register should particularly state and set forth the place where, the time when, and carpenter by whom the vessel was built. Her rig, general form and model. Her length from her stem to her [Page 90]transom, on the main deck. Her extreme width, and her depth at the forepart of her hatchway; also her true tonage, according to carpenters measurement. The owner, or owners, if more than one the part each may own, and their respective places of residence; should likewise be stated and set forth in the register. Certificates also, I conceive, should accompany every clearance, descriptive of the master and crew, the place of their nativity and their present allegiance.
In case of any alteration in the rig, form and model of the vessel, or in the owners, the register should be returned and canceled, and a new one taken out.
These measures, I conceive, are necessary to the support of the navigation of the United States, and the increase of their seamen.
AMERICAN NAVY.
THE disposition of the people of the United States, is now pacific. They think of nothing at present but cultivating the arts of peace, and apprehend no danger of invasion; neither do their views extend to the enlargement of territory. But this will, probably, not always be the case. The ambition of the people of this country, like that of all other nations, will be excited by, and increase with their increasing power.
The first objects of their ambition lie open before them, are now obvious to every attentive observer. The natural boundaries of the United States, are the river St. Lawrence on the north, and the Mississippi on the south, to which, one day or another the dominion of the States will probably be extended; and the West-India islands, are the natural appendages of this continent. Beyond these, I think the United States can never have a justifiable object of ambition,
[Page 91] The increase of the power of the States will, I am of opinion, be more rapid than the people in general are aware of, and of consequence, bring these things into contemplation sooner, than may be generally imagined. By the great migrations into this country, in consequence of the establishment of a good and safe government, together with its natural population, the number of inhabitants will, I am persuaded, in fifty years, amount to about twenty millions. Such an increase of the power of the States, together with their natural resources, will excite the jealousy, and arouse the fears of those nations who have possessions on this side the Atlantic. Some of whom may secure the friendship of the States, others may not, particularly Great Britain, who so long as she retains her present ideas of omnipotency, will never solicit the friendship of the United States; but instead thereof, will make use of every method to suppress their rising power, and when that is found impracticable, will attempt to form a confederacy against them. This, although it be a matter of conjecture, is, I think, founded on such circumstances, as to render it warrantable, and notwithstanding events of this nature are reserved for a future period of time, yet I conceive, they are objects which always ought to be kept in view, and provided for as soon, and as fast as it may be in the power of the States so to do. And to this end,
Besides the measures necessary to be taken to increase the wealth of the nation, and to keep the militia in a state of good military order and discipline, a naval force, I conceive, should be collected, and increased as fast as it can conveniently be done.
Many I know, are of opinion, that a naval force will never be requisite; but I must differ from such in opinion; considering those circumstances which I have now taken notice of; considering that the navigation and commerce of the United States, will [Page 92]more and more tend to the rivalry of the commerce of several of the maritime powers of Europe, and in consequence thereof, the policy of those nations will be opposed to the policy of the United States, and considering also, that the only sure dependence the States can have in any event, will be on their own strength and resources, I cannot but think, they will have a great and necessary occasion for a naval force. If so, the establishment of a navy should be begun as soon as possible, for it will require a length of time to render it formidable.
A naval force must necessarily be but small at the first, but however small it may be, it would answer several good and necessary purposes. As 1st. It would be a means of preventing a smuggling business on the coast, which is very practicable to be done, by sure-concerted measures. 2d. It wouldbe a means of preventing acts of piracy, which have frequently been committed on the coast, and even in our harbours. And 3d. That which I esteem a matter of the greatest consequence is, the teaching the order and discipline of a navy. Such a school is wanted, for those young men, who might be disposed to improve themselves in naval and nautical knowledge; for which reason, if a naval force should be collected, let it be ever so small, a strict discipline should always be maintained, and considered a principal object—Should a naval armament at any future time, be necessary for the defence of the nation, or other national purposes, it would lay the States under great disadvantages, had they no citizens capable of commanding.
Russia has become a considerable maritime power, yet she has introduced Englishmen into her navy as officers; and that to such a degree, that were they to quit her service, her navy would be prejudiced, if not ruined—And should a rupture happen between Russia and Great-Britain, which is by no means impossible, what dependence would Russia make on her navy, commanded by Englishmen.
The SECURITY and COLLECTION of the IMPOST.
A JUST and punctual payment of the impost, is not only of importance to the revenue, but to the interest of the fair trader; for which reason, it becomes the interest and duty of the public and of individuals, particularly the merchants, to make use of the best and most effectual measures in their power, for the security and collection of the duties which may be imposed on articles of importation.
The coast of the United States is so extensive, with so many harbours, inlets, &c. that a smuggling business might easily be carried on, and that withoutmuch fear of detection. And even in the ports smuggling might easily and safely be done, unless a great number of officers should be added to the custom houses.
As the States have patterned after the British nation in many things, so, among others, they have adopted the British methods of securing the impost, which consists in oaths and a multiplicity of custom-house officers. But I conceive, a much better mode could be devised; for a multiplicity of officers is but a burden on the revenue, and so far as my observation extends, I cannot but think a national revenue is in general, more defrauded by the custom-house officers, than by smugglers.
The United States would undoubtedly prefer the most eligible and effectual, and at the same time, the least burthensome methods of securing and collecting the revenue. And among a variety of methods that might he proposed, I would take the liberty to propose one, which, considering every circumstance, appears to me, the most eligible. I will not pretend to say it is, in fact, worthy of approbation; but it may nevertheless, be a means of producing something better.
The mode I would propose is this To appoint a collector general, who will keep his office at the [Page 94]seat of government. Appoint a collector in each port, where a custom-house may be necessary; and weighers, guagers and measurers in the ports, where a custom-house is established, in number, according to the business to be performed in the respective ports; the same also, in such out ports as vessels may belong to, and discharge at. These, I conceive, are all the officers necessary to be appointed.
The duty of the weighers, &c. to ascertain the contents of such cargoes as require weighing, guaging and measuring, and to return certificates thereof (they being under oath, and penal obligations) to the custom-house. The duty of the collectors to be, besides what is usual and common to the office, the making of weekly, or monthly returns, in the original papers of the entry of each vessel, to the Collector General's office. The duty of the Collector General to re-enter in his books every vessel and cargo originally entered in the respective ports, and and to keep a regular account with each custom-house. Besides, it will probably be found necessary to invest this office with certain powers, and to require certain duties of it, which circumstances may suggest and particularize.
Some material advantages, I apprehend, would be derived from such an institution and arrangement, and render it preferable to the common and usual methods made use of in Great Britain, and in this country. It would render the office, duty and burden of searchers, tide-waters, &c. unnecessary: It would give the revenue every security against the mal-practices of custom-house officers, which is intended to be provided against, by a plurality of officers in the custom-houses of Great Britain; and, what I conceive would be a matter of weighty consideration, is, that government could at all times receive official information of the state of the revenue, without delay, trouble or expence.
[Page 95] The master of a vessel to be required to make report of his arrival at the custom-house, within twenty-four hours after, if he arrives at a port where a custom-house is established; if at an out port, within forty-eight hours. He shall deliver into the custom-house a manifest of his cargo, which shall contain a particular account thereof, so far as to the kind and quality, as far as he may know, and also, of the casks, bales and others packages, together with their marks and numbers, and their general contents, as far as he may have the knowledge of.
If the cargo consists of such articles as require weighing, guaging and measuring before the quantity can be ascertained, the manifest to be left blank until certificates are returned into the office, and to this end, the collector to issue an order to a weighter, &c. directing him to attend to the discharge of the vessel—take account of the contents of the cargo, and make returns.
If the cargo consists of dry goods, &c. of which the invoices contain a just account, the merchant, to whom the goods belong, or are consigned, shall deliver a copy of the invoice or invoices into the custom-house under oath; in which copy the particular articles shall be arranged under the different denomination or rates of duty.
On the master's giving in his manifest, and before permission be granted for the discharge of the vessel, he shall execute a bond, with one sufficient security, in a penal sum sufficient for the purpose; the condition of which to be, that he, the master, hath made a full and just report of his cargo; that he hath not landed out of his vessel, or suffered to be landed, or put, or suffered to be put on board of any vessel or boat, for the purpose of being landed in any part of the United States, any part of his cargo, at any time since his departure from his port of clearance, until that time, with intent to defraud the revenue, And this bond [Page 96]to remain in force for the term of five years. If no information is made within that time, accompanied with substantial proof of a false entry, &c. the bond then to become void. But, if within that time it shall appear, by sufficient testimony, that any part was smuggled, the penalty to be forfeited, and the bond prosecuted.
By the requisition of such a bond, to remain in force for so great a length of time, it appears to me, the duties would be more effectually secured, than by any other method; for, I think, no master of a vessel would dare to run the risque of a short entry, when so much time was reserved for detection; and no man would be willing to join in such a bond, until he was sure of being safe. The propriety of the measure I will submit, but I am humbly of opininion, that without some methods of this nature, the duties in the United States will never be fully secured, being situated and circumstanced as they are.
I am aware of some inconveniencies which may arise from this mode, but I know of none wholly unexceptionable. It may be objectionable on account of its litigiousness. This would arise principally from the various rates of duties imposed on a great variety of particular articles; but no method occurs to me in which this inconvenience could be fully remedied, unless the idea of encouraging and supporting the manufacturing interest of the states should be given up, wich I presume will not be the case. However, I conceive that the forms of entry may be so simplified and methodized, as to remedy most of the inconveniences which may arise from this cause. It may be found exceptionable on another account. Vessels belonging to, and discharging at an out port, would lay the master and his securities under the necessity of making two journies to the custom-house, before the duties could be settled. This is an inconvenience for which I know of no remedy, for I conceive no delay [Page 97]should be made in the settlement of the duties. Forty-eight hours after the contents of the cargo is ascertained, is time sufficient for that purpose, if at an out port; and twenty-four hours, if at the port where a custom-house is established. To delay the settlement of the duties until it may be convenient for the master to attend at the custom-house, or, until he should have occasion to clear his vessel out, in order to save the trouble of an extra journey, would be so out of rule, and so dangerous to the revenue, that such an indulgence could not with any propriety be granted. Another objection may be made. It frequently happens, that vessels belonging to one port of the States, having cargoes on board consigned to the master or supercargo, enter in other ports of the States, out of which cargoes on extra commission could not, without inconvenience, be given as an inducement to a merchant to become a security in the requisite bonds. In order therefore to remedy this, and to accommodate the interest of the merchants of the United States, in all such cases, the masters executing the bonds, might be declared by law to be sufficient to bind the owner, or owners, let them reside in whatever part of the States they may. This is one reason among others, why, I conceive, that registers should be particular and explicit in the statement of the owners of vessels. On the whole therefore, I cannot see any reason why the impost may not be secured and collected, in the most effectual manner, and with as few inconveniences, in some methods of the nature here suggested, as in any which can be proposed.
To what I have here observed, I would beg leave to add a few remarks relative to this subject.
I have had frequent opportunities of observing the conduct of revenue officers in a variety of situations and circumstances, and the proceedings of maritime courts in cases of seizure for a breach of the laws of trade; and I have remarked a number of abuses to [Page 98]the revenue and many hardships and grievances suffered by people who have unfortunately fell into the hands of the officers of the customs.
In most or all nations, a prosecution in the case of a breach of the laws of trade is confined to the officers of the customs, by which means they have it in their power to defraud the revenue for the sake of a bribe; in a manner safe to themselves as well as the person indulged. Instances of this nature are frequent in many ports. To prevent such practices I conceive a liberal reward should be proposed to an informer and prosecutor, and that any person whatever be authorised to prosecute on giving sufficient bonds as well as a custom house officer; besides, a custom house officer should be subjected to heavy penalties and high forfeitures in cases of mal-practice. On the other hand, a person who maliciously or wantonly informs against or prosecutes any person for a breach of the laws of trade, should be liable to a severe punishment besides making good all damages. An informer ought not to be given up except in this case, neither should he be admitted as an evidence.
In cases of seizure I have observed under the British government very unfair and ungenerous methods made use of in the preparatory examinations. Those people who are supposed to be knowing to the fact are separately examined and cross examined, accompanied often with threats or promises, until something is in this manner drawn out sufficient to serve the end in view; and without admitting the person or persons concerned to be present. By this means many innocent people have suffered extremely.
No examinations of this nature I conceive ought to be admitted but in the presence of the parties concerned.
I have known an established customary compliment to the judge of a court of admiralty in all cases of condemnation. This is so barefaced a piece of bribery, [Page 99]that no government would avow and support it: But in seasons of popular zeal, as was lately the case among the English, for the suppression of the navigation of the United States, it may be winked at. Such abuses however of the judicial powers, should undoubtedly be guarded against.
I have known also, ruin and distress brought on persons by a rigorous execution of the laws, who have exposed themselves to a prosecution, ignorantly or inadvertently. As the intention and design constitutes the criminality of actions, so the laws in all cases ought to discriminate between intentional and wilful offenders, and those who have been guilty of a breach of law, ignorantly and undesignedly. The courts of admiralty therefore, I conceive, should be invested with a diseretionary power to mitigate penalties and forfeitures, in such cases wherein there may be sufficient reason to determine they were incurred through ignorance or inadvertence. There are, I apprehend, but few cases brought into any court in which it cannot be determined how sar a delinquent was intentionally criminal.
I have but one matter of observation more, and that is respecting the
TITLES OF THE PRESIDENT AND VICE-PRESIDENT OF THE UNITED STATES.
MANY of the customs and usages of this country are copied from the practices of Great-Britain; some of which are suitable and proper, and some are not; among which, the usage of conferring the title of Excellency on the governors of the states, was continued since the revolution, for no other reason but because that the governors of provinces under the British government had such a title conferred on them. The propriety or impropriety of this usage depends on the original intention of it, applying it to present circumstances.
[Page 100] The title of Excellency is conferred by the British government, (where it originated) on persons of distinguished rank; yet, they are always considered as inferior. It is given to persons at the head of departments, but at the same time, such as are considered subordinate to the supreme executive authority of the nation. To render the application of the title proper therefore, and consistent with the original idea on which it was founded, it ought not to have been conferred on the first and highest executive authority of the States, before their late union; because the office and rank was supreme and unsubordinate. But as the states have united in a general government, and by that have rendered the government of the states in some respects subordinate to the national government, the title of Excellency becomes again proper for the governors of the respective states; at the same time however, it renders it improper for the President and Vice-President of the United States.
If titles mean and intend any thing, it is undoubtedly to distinguish persons in the various ranks they hold, either in the civil, military, or ecclesiastical departments. To apply a title therefore, founded on the idea of inferiority to the first offices of the nation, and highest ranks in life, or to confer a title indiscriminately on supreme, and subordinate ranks, appears to me to be the confounding of ideas, and making use of titles without meaning.
The presidency of the United States is as high an office, and of as much dignity and importance as can be constituted and established by any nation on earth; and although I should object in my own mind to the President's being ornamented with unmeaning and ostentatious titles; yet, such a title, in my humble opinion, ought to be conferred, as would in a rational and decent manner, distinguish the rank, and be expressive of the respect due from the people to that person, who, by their own suffrages, they advance to a station of the highest national dignity and honor.
[Page 101] In primitive times, when titles were made use of for no other purposes but that of distinguishing persons in the various ranks and offices which they filled, the simple title of king was given to the head of the nation, which was sufficient; for to that could be affixed every idea of distinction, honor and respect, that ought to be connected therewith, as well as by adding a multiplicity of distinguishing appellations. But since then, as people have refined and improved in the arts of pride and vanity, and as the kings of the earth have, at times, maintained an absolute dominion over the minds and persons of their subjects, they have assumed titles which are repugnant to reason, religion and propriety. In fact, many of them approach nigh on the borders of idolatry. They are not properly titles, but attributive appellations, attributing certain qualifications and properties, supposed, or admitted to be inherent in kings; the evident design and reason of which is to gratify a spirit of pride and vanity, the first and most predominating quality of a royal mind; to excite a spirit of servility and awe in the minds of the people, and to erase out of the mind the mortifying idea of humanity.
The British nation, as enlightened as it is, has gone as far into this spirit of pride and ostentation, and species of idolatry, as any nation in Europe, which is called in Great-Britain, the dignity of government. But I cannot but hope and expect the United States will never consider the dignity of their government to consist in titles, or in an awful distance placed between the officers of state, and the people at large; but in something more essential to real national dignity and honor.
The citizens of the United States, in all their public proceedings, have exhibited an unprecedented example, of a people spread over an extensive territory, remote from one another; whose interests, customs and manners are different, yet, uniting in national [Page 102]measures, and without a dictator, or any coercive power, governing themselves by reason and principle; and the same good sense which on all occasions has dictated the most proper measures, will, I doubt not, suggest some proper titles for the President and Vice-President; such as will be free from European arrogance and impiety, and consistent with common sense, republican principles, and the genius of the people; such as will distinguish ranks and offices of the first national dignity and importance, and be expressive of that degree of honor and respect which is reasonably and preceptively enjoined on the people.
I will take the liberty to mention what has struck my mind on this subject, but as it is a late and transient thought, I do it with diffidence.
That which has appeared to me as proper and consistent with my own ideas, is this: For the President, The High and Most Honorable, the President, &c. And for the Vice-President, The High and Honorable, the Vice-President, &c.
The only objection which at present occurs to me, that could be made to such titles, by the most rigid commonwealths-men, would be with respect to their personal application. Your Highness, and His Highness might in some ears sound unpleasant, and too much like royalty. But I apprehend it would be found on examination, to contain nothing but what is quite proper and reasonable, and perfectly consistent with the Constitution, and the spirit and principles of a free government. I suggest it however as a matter of speculation.