Imágenes de páginas

H. OF R.]

The Tariff

[MAY 11, 1830

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fall upon the producer, until he can withdraw his capital from it the southern planters, with their imported mabuand labor, and thereby diminish the production of the factures. This, sir, is the true issue now pending between taxed article. Such is the operation of impost duties upon the northern and southern States, and I thank the gentle the cotton planter. On the contrary, a general impover- man from Massachusetts for his unintentional exposure ishment of all the soils that are devoted to the production of the real object of the prohibitory system. It will not of cotton would, in the first instance, diminish the quantity be apparent to every intelligent mind, that the duties leproduced, cause an enhancement of the price, and conse- vied on the exchanges of the southeru planters are taxes quently throw the most of the burden upon the consumer. upon them as producers, independent of their consump An annual blight, therefore, which should destroy two- tion. It is not denied that the plauter is taxed to the ex fifths of the crops of the cotton planters, would be much tent that he consumes the productions of foreign countries less injurious to them, than a duty of forty per cent upon subject to import duties.' I will, therefore, confine my the exchange of their productions. And yet it is argued, self for the present to the consideratiou of that portion of with solemn gravity, that this duty imposes no tax upon the imports obtained in exchange for cotton, tobacco, and the planters, which does not equally extend to all other rice, which consist of foreign manufactures brought inta, classes of the community!

the United States, not for the purpose of being consumed The gentleman from Massachusetts

, who first addressed by the planting States, but for the purpose of supplying the committee, (Mr. Davis] bas entirely misapprehended the demand of the States for those articles. Let us supthe argument I used, and the effect of the proposition I pose, for the sake of illustration, that South Carolina corlaid down, as to the operation of an impost duty on the sumes only one-half of the eight millions worth of foreiga price of cotton. I did not say that such a duty diminish- manufactures annually imported in exchange for her staples. ed the price of cotton in the foreign markets. On the and that the other balf is brought into the country, to be contrary, I expressly and distinctly stated, as the basis of carried into the markets of the western and middle States, my whole argument, that do change was produced in those and offered for sale in competition with the manufacture markets, either in the price of cotton, or of the manufac. of Massachusetts. Wbat, sir, would be the nature of the tures we receive in exchange for it. The very essence of competition, and upon what footing would it stand as a my complaint was, that the planter was compelled to pay fected by the legislation of Congress ? the Government forty per cent. upon the amount of his Will it be denied that the foreigo manufactures, import exchange, and yet could not obtain any more for his cot- ed in exchange for the agricultural staples of South Caro ton, nor purchase foreign manufactures any cheaper, in lipa, are as truly the productions of her industry, as if ber consequence of the tax imposed upon him. In other own citizens bad turned the spindle and thrown the shutwords, he receives no larger quantity of manufactures for tle by which they were fabricated ! Amidst all the ex . a given quantity of cotton, than he would receive if po travagance and absurdity by which the prohibitory system i duty were imposed, and yet he is not permitted to bring has been sustained, I presume no one can be found bold those manufactures into the United States until he pays enough to make the denial. the duty. The result necessarily follows, that the whole What, then, is the footing upon which the citizens o burden of the duty must fall upon the plauter, unless he South Carolina and the citizens of Massacbusetts come is cau transfer a part of it to the domestic consumer, by en competitiup with the respective productious of their in hancing the price of the foreigo manufacture in the home dustry, in tbe markets of Kentucky and Obio, of New market. This, bowever, can only be doue by diminishing the York and Pennsylvania ? Is it a footing of equality! Og aggregate quantity of foreign and domestic manufactures the contrary, is there not a discriminating duty of forty-five in that market

. But the very object and evident tenden- per cent and upwards, unjustly imposed upon the proba cy of prohibitory duties is to supply the home market with ductions of South Carolina, for the sole purpose of exclud a quantity of domestic manufactures, very nearly equal to jug them from the markets in question, while an indirect the foreign manufactures excluded. The supply, there- bounty to the same extent is given to the productions of fore, is not diminished to any great extent, nor is the de. Massachusetts

, for the sole purpose of giving them the coemand increased by these duties; and consequently the mand of those markets ? There is no possible aspeet in which price of the foreign manufacture cannot be enbanced in the this system of restrictions could be presented, so well ealeudomestic market, in proportion to the impost duty, any lated to exbibit its abominable and iniquitons injustice. more than the price of cotton would be enhanced in the If a duty of forty-five per cent. were imposed upon the foreign market, in consequence of an export duty. importation of the productions of South Carolina into all

It will be recollected that one of the gentlemen from the other States, the outrage would shock the moral senest Massachusetts [Mr. Gorham admitted that an import du- of every man in the nation : yet this would be doing so ty was equivalent to an export duty, and operated as a thing more, in point of principle, and much less io pout of tax upon the producer, where the articles which were tact, than what bas been actually done already. What subject to the import duty came in competition with simi. bave said of South Carolina, is equally true of all the lar articles upon which no duties were imposed in the planting States. home market. Now, sir, this is precisely the case under Suppose for a moment that the manufactures obtaided consideration. The foreign manufactures upon which in exchange for the productions of southern industry, duties of forty-five per cent. are paid by the planters, were imported for the purpose of supplying Mexico or came in competition with domestic manufactures upon South America, and that no draw back should be allowed which po duties at all are imposed.

upon exporting them to those countries. Could any use Iudeed, sir, another gentleman from Massachusetts (Mr. doubt, in this case, that the impost duties would operate Davis) made an admission, into which I presume he was as taxes upon the planters as producers, and not upon the inadvertently betrayed, as I cannot suppose he would have consumers? And yet it is, to all intents and purposes, the made a disclosure so fatal to his argument, if he had duly same thing to the planters to be compelled to pay duties considered its bearings and consequences. He stated, and on the manufactures they import, for the purpose of sup correctly stated, that the southern planters and northern plying Kentucky and Obio, as it would be, to be compel manufacturers were contending for the domestic market led to pay the same duties on the manufuctures imported, of the United States ; that the object of the southern plant- for the purpose of supplying Mexico or South America. ers in contending for free trade, was to be admitted, with I do solemnly believe that there never was a branch of the productions purchased by their own industry, into that national industry so oppressed and borve down by unjust market; and the object in the northern manufacturers, in taxes and restrictions, as the agriculture of the planting contending for high duties and restrictions, was to exclude States ; and I beg the committee to notice the complicate

MAY 11, 1830.)

The Tariff

[H. OF Ri

weight of discriminating duties, imposed, too, by our own different parts of the Union, and the different branches o Government, with which it has to contend, both in the fo- productive industry. reign and domestic market. Let us take cotton as an The committee cannot but now perceive that whether example.

the planting States of the South import manufactures for In the first place, it has to seek a foreigo market, where the consumption of their own citizens, or for the purpose it meets in competition the cotton of Brazil and Egypt, of carrying them into the markets of other States, to be produced by the richest soils, and that of the East Indies, sold in competition with northern manufnctures, the import produced by the cheapest labor upon the face of the earth. duties, in either case, operate as taxes upon the planting In the second place, it has to contend against a discrimi- States, though not precisely to the same extent.' In the pating duty of at least thirty per cent in favor of the cot-ove case, they operate as taxes upon consumption; in the ton of Brazil

, and of at least forty-five per cent in favor other, as discriminating transit duties, which the planters of the cotton of the East Indies and Egypt. The planters are compelled to pay for the privilege of vending the proof Brazil

, East Iodia, and Egypt, receive the same quantity ductions of their lawful industry in the markets of their of British manufactures for a given quantity and quality of own country, when they come in competition with procotton, as the American planter; but the Brazilian only ductions of other States, which are not only free from taxpays a duty of fifteen per cent. on those manufactures, and ation, but nourished by Government bounties. the Egyptian and East India planters pay no duty at all, I will now proceed to illustrate the tendency of diswhile the American planter pays at least forty-five per criminating duties to ebange the course of trade, and hence cent. It cannot be doubted, therefore, that the American demonstrate the practical injury inflicted upon the stapleplanter has to contend, in foreign markets, not only against growing States by your impost system. the fertile soil and cheap labor of the other cotton grow A few years ago, a discrimination of five per cent. was ing regions of the world, but against a discriminating duty made between the duties imposed upon silks imported equal to the difference between the duties imposed by the from beyond the Cape of Good Hope, and those imported tariff of the United States, and by those of Brazil, the East from Europe ; and already has the amount of silks importIndies, and Egypt, respectively, upon European manufac-ed from France been almost doubled, while the amount of tures. He does not ask Congress to give him any bounty those imported from China bas fallen off in a correspondor protection, to enable him to meet foreigo competition ing degree. i in foreign markets; all be asks is, tbat bis own Goveroment It is said by practical merchants, that a discrimination may not send him abroad to meet this competition not only of five per cent. in favor of foreigners, effected by evasions unbountied and unprotected, but with a discriminating duty of the revenue laws, is sufficient to throw into their bando of from thirty to forty-five per cent against his cotton, and almost the whole business of importation, to the exclusion in favor of that of other countries! Yet even this bumble of the American importers. If these small discriminations exemption-un exemption which he claims upon the most can change the course of trade to so great an extent, conmon principles of natural and political justice, he can what must be the effect of a discrimination of from tvirty not obtaíu from a Government which claims the sacred to forty-five per cent. against the American planters in title of a paternal and protecting Government! But his foreigo markets, and of forty five per cent in the domestic difficulties do not end bere. When he returns to his own market! The most satisfactory mode of ascertaining the country with the manufactures obtained in exchange for burden imposed by these discriminations, is to consider his cotton, be is destined to encounter a competition even the effect which would result from a repeal of them. What more unequal than that which he encountered abroad. He then would be the effect resulting from that repeal! We has to bold competition with the northern manufacturer, have been very gravely told by the gentleman from Maswith a clear discriminating duty of forty-five per cent. sachusetts (Mr. Davis) that it would raise the price of Against himself, and in favor of the manufacturer, in addi- manufactures, and depress the price of cotton in the United tion to the duties levied in foreign countries upon his cot- States! An audience that can believe this, would believe ton, and the expenses of importing toe manufactures re- in any of the miracles of the dark ages. The repeal of ceived in exchange for it. Wherever he goes, at bome or our impost duties, on the contrary, would, in the first abroad, he finds himself pressed down by the heavy band place, enable the American cotton planters to drive all of bis own Government. While the Government is subject their competitors out of the markets of Europe. If the ing the planters of cotton, tobacco, and rice, to the bur- planters of Brazil, the East Indies, and Egypt, can barely dens of this twofold operation of discriminating duties, it is maintain the competition, with discriminating duties of worth wbile to inquire low its legislation operates upon from thirty to forty-five per cent in their favor, they could the other branches of domestic industry.

not maintain it for a single year upon a footing of perfect Sir, there is scarcely a single branch of industry belong. equality. The consequence would be an increased deing to northern or to middle States, that is not protected, mand for our cotton in Europe, to the extent of at least even in the enjoyment of the home market, by an average three hundred thousand bales. For it is to be remarked discriminating duty of forty-five per cent.--a duty profess- that the increased demand would result, not only from the edly imposed upon the productious of southern industry exclusion of the Brazilian, East India, and Egyptian cotand enterprise, with a view to their exclusion, and the sub- ton from the markets of Europe, but from the increased stitution of tbe productions of northern industry. Yes, consumption of cotton in those markets. There is no A8while the cotton, and rice, and tobacco planters are doom- signable limit to the quantity of cotton that would be coned to sustain all the difficulties and obstacles arising from sumed in Europe, if we would receive manufactures freely the competition of the whole world in foreign markets, in exchange for it. Now, sir, upon the conceded princiunder the weight of an enormous discriminating duty im- ple, that supply and demand regulate the price of every posed by their own Government, the cotton and woolled article, it would puzzle the gentleman from Massachusetts manufacturer, the wool growers, the iron-masters, the salt to show that an increased demand for American cottoo, makers, and sugar planters, not satisfied with the natural to the extent of three hundred thousand bales, would diprotection resulting from the distance of the competitors, minish the price. In fact, the real price of American cotare secured in the monopoly of the domestic market by ton would be increased very nearly as mady per cent. as the additional protection of forty-five per cent., unjustly the duties on foreign manufactures were diminished. So bestowed upon them by a despotic majority, at the ex- that the American cotton planter would bave an increased pense of those very planters! If there is one spark of jus- demand for his staple, amounting to three hundred thoutice left in the breasts of that majority, it will acknowledge sand bales, and would obtain an increased price of little the flagrant outrage of such a discrimination between the less than forty-fivo per cents

, not only for those three hun

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H. OF R.)

The Tariff

[May 11, 1830.

dred thousand bales, but for the whole amount of his pro Now, sir, if there be any truth in these representations, duction. Such, sir, would be the effect upon the foreign if we are to regard them as anything more than mere demand for American cotton, produced by the repeal of rhetorical flourishes, they furnish the most incontestible your unjust restrictions-restrictions which bave all the proof of the unequal, unjust and oppreesive operation of injurious effects upon the American cotton planter which the prohibitory system upon the planting States. They would result from the imposition, by Great Britain, France, certainly amount to a distinct and unequivocal admission and Holland, of a discriminating duty of from thirty to for that the wealth and prosperity of the manufacturing States ty-five per cent. on American cotton, beyond what they im- are derived from the duties imposed upon the productions posed on the cotton of Brazil, Egypt, add the East Indies. of southern industry; for if a repeal, or even a moderate

It remains to be ascertained what would be the effect restriction of these duties would spread desolation over the produced upon the operations of trade in the domestic easteru and middle States, it follows as a corollary, that market of the United States, by the repeal of the high du- the existence of those duties must produce a corresponding ties imposed upon foreign manufactures, and which really injury to the southern States. operate, and are designed to operate, as discriminating du I presume I may take it for granted that the days of poties against the southern planters, and in favor of the north- litical necromancy bave passed away, and that no one will ern manufacturers. The repeal of those duties, or a con now conteod, except perhaps that celebrated Rosicrucian siderable reduction of them, would enable the southern philosopher, Professor List, that there is a creative power planters to drive the northern manufacturers out of the in legislation. Sir, no political power on earth can, by 4 markets of the United States, as certainly and to as great mere touch of the legislative wand, as if by the touch of an extent as it would enable them to drive the planters of Midas, diffuse wealth and prosperity over extensive reBrazil, Egypt, and the East Iodies out of the markets of Eu gions of country. Nothing less than an omnipotent power rope. This is apparent from the single consideration, that, is adequate to produce such a result. Whatever wealth, with protecting or discriminating duties of forty-five per therefore, is communicated to one portion of the Union cents, the northern manufacturers can scarcely maintain the by the duties and taxes imposed by Congress, must necescompetition with the southern planters, in supplying the sarily, and in the very nature of things be abstracted demand of the United States for such manufactures as those from the wealth of some other portions of the Union. planters obtain in exchange for their agricultural staples. Human industry only, co-operating with the bounties of If those were repealed, or even reduced to twenty: per nature, can create wealth. All that human legislation can cent., it is obvious that the manufactures of the northern possibly accomplish in this respect, beyoud protecting the States would be supplanted by those which are obtained property of every citizen against foreign and domestic vioin exchange for the productions of the southern States, to lence and injustice, is to change the natural distribution an extent fully equal to the increased demand for our cot of the wealth thus created, by an arbitrary and despotic lon in Europe. For it cannot be doubted that the aggre- transfer of the property of one portion of the community to gate consumption of manufactures would be very greatly another. increased in the United States ; so that the southern plant I have said that it is impossible to confer wealth on one ers would have an increased demand for the manufactures part of the Union, by the legislation of Congress, without purchased with their productions, not only in consequence abstracting an equal amount of wealth from some other part of underselling and supplanting northern manufactures, of the Union. I duw go further : I maintain that whenever but in consequence of the increased consumption of manu. this transfer of wealth from one part of the Union to apfactures generally.

other is effected by regulations which divert industry from If, then—as no one, I presume, will question-the bene- its natural into artificial channels, the burden imposed up fits which would result to the southero planters from the on the one part of the Union is much greater than the repeal or reduction of the probibitory duties, should be benefit conferred upon the other. When, therefore, it is taken as the measure of the burdens imposed upon them affirmed that the proposed reduction of the duties upon by those duties, the committee will very clearly perceive the productions of southern industry would utterly descthat I bave not estimated the burdens of the southern late the manufacturing States, gentlemen should reflect States too highly. For it may be safely assumed that a that they are giving the strongest possible confirmation of reduction of the duties imposed upon foreign manufac- the alleged desolation produced by these duties upon the tures, with a view to the protection of the domestic, from prosperity of the planting States. For nothing can be their present rates to twenty per cent, would increase the more clear, in my view of the subject, than that the injury annual income of the planters of cotton, tobacco, and rice done to the planting States by the imposition of the duties at least ten millions of dollars, taking into view the increas. in question, is much more extensive than that which would ed demand for these staples, and their increased value, re- result to the manufacturing States by the repeal of them. Bulting from the reduction of the duties in question. And yet, A very brief analysis of the manner in which the preeven after this reduction, the planting States would contri- posed reduction fof duties would operate, will illustrate bute more than their due proportion to the federal treasury. and confirm the views here presented. What, then, is it

These views of the unequal action of your impost sys- that would produce the alleged desolation in the manufactem upon the different sections of the Union, and of the turing States ! Would a British army, with hostile banders eftect of its repeal or modification, are fully confirmed by waving over the ruins of your manufacturing establishthe concurrent declarations of almost every advocate of ments, carrying devastation by fire and sword throughout that system, who has addressed the committee during this the manufacturing States of the Union i Would the southdebate. They all concur in the opinion that the adoption ern planters with

an army of slaves, apply the incendiary of the amendment I have offered--small as is the reduc- torch to those establishments | Nothing of this sort is pretion it proposes would be utterly ruinous to the northern tended, sir. The manufacturers would neither feel the manufacturers. One gentleman [Mr. Davis) has stated hand of violence nor injustice. Nothing would be taken that all the manufactories would be razed to their founda- from them to which they bave a semblance of title. The tions, and that the people of New England would have no whole of the desolation which gentlemen bave depicted, resource or refuge, but in flying to the western wilderness, would result from restoring to the planting States a parto take up their abodes among savages and wild beasts. tion only of their natural and constitutional rights. As Another gentleman (Mr. DENNY] has said, that, if you the tariff now stands, the southern planters are not peradopt the proposed amendment, you sweep through Penn-mitted to vend the productions of their industry in the sylvania with the besom of destruction, and run a plough- markets of the Union, until they have paid a discrimishare-over Pittsburg.

nating duty of forty-five per cent., while the manufaeturing

May 11, 1830.)

The Tariff

(H. OF R.

States are permitted to vend their prodactions without signal benefits upon one portion of the Union, without paying any duty at all. Even if the proposed amendment doing a corresponding injury to any other portion. It is were adopted, there would still remain a discriminating true, indeed, that one of the gentlemen from Massachuduty of a least twenty-five per cent. against the southern setts (Mr. Davis) did very distinctly advance the propoplanters, and in favor of the northern manufacturers. sition that impost duties are not taxes, and do not impose

And yet gentlemen openly admit and declare, tbat, even any burden upon the community, but copfer very great with this discriminating duty of twenty-five per cent. in benefits. The first day he addressed the committee, be their favor, the northern manufacturers cannot hold com made a very labored argument to prove that impost duties petition with the southern planters, in supplying the mar: imposed no burden at all upon the southern planters, as kets of tbe Union with manufactured articles, but would producers. The second day be maintained, with equal be utterly ruined by the competition. If, then, this par-earnestness, that every increase of duties on foreign maputial restitutiou of the rights of the southern States would factures, so far from increasing their price, had actually produce such disastrous consequences to the nortbero made them cheaper, and consequently that the consumer manufacturers, what would be the effect produced by au paid po part of the tax, but, on the contrary, received a entire restoration of those rights! Those rights can be benefit. 'The gentlemau acted wisely in uot uttering these completely restored, only by placing the productions of two propositions on the same day. Separated by the insouthern industry upon a footing or perfect equality with terval of a night, it was possible that the paradoxical abthe productions of northern industry. To produce this surdity involved in their union might not be perceived, equality, there should be no discriminating duty at all, not When brought together, they amount to nothing less than to the extent of twenty-five or even five per cent. The the broad and unqualified assertion that the impost duties manufactures purchased by southern industry skould he laid upon foreign manufactures, though they yield a large subject to no bigher duties tban the manufactures made revenue to the Government, and, indirectly, a bounty to by northern industry. The property obtaived by pur. domestic manufacture, impose no burden at all upon any chase is no more rightfully the subject of taxation, por portion of the commuoity. After this, the doctrine that less entitled to the protection of a just Government, than taxation is no tyranny," can no lopger be regarded as that wbich is manufactured by the owner. Whatever du- confined to the slavish advocate of the despotic power of ty; therefore, is imposed upon foreigo manufactures ob- the British Parliament, and the passive obedience of the tained in exchange for the productions of domestic indus- North American colonies. Improving upon the exploded try, the same rate of duty should be imposed upon the political text, that a “public debt" is a " public blessing.” manufactures made in the United States, and brought into the gentleman from Massachusetts bus revealed to us the competition with them. This is indispensable to that still more important discovery, “ that a public tax is a pub. equality of taxation which every State in the Union has a lic blessing." right to demand. If a duty of twenty-five per cent. is im So far as there is any truth in the assertion of the genposed upon the manufactures imported by the southern tleman from Massachusetts, that the increase of duties on planters, the same duty should be imposed upon those foreigo manufactures does not enhance their price, it is a which are made by the northern manufacturers. They conclusive confirmation of my argument, as to the operawould then come into competition upon a footing of per- tion of impost duties on the producers of our exports. fect equally in regard to government protection. What. For if the price of manufactures be not increased, in conever advantage either might have, would be a natural ad: sequence of the duties, it follows that no part of the tax vantage, of which they could not be rightfully deprived falls upon the producers. Nothing can be more certain by the Government. If, then, the reduction of the duties than that, if there be no magic in the business, somebody on imported manufactures to twenty-five per ceot. would must pay the taxes that go into the federal treasury. The prove ruinous to the northern manufacturers, what utter truth of the matter is, that the price of manufactures is and absolute destruction would result to those manufac- not increased in proportion to the duties imposed upon turers from that reduction, accompanied by an excise duty their importation, though it is increased to a certain exof twenty-five per cent. on their production? It must tent. But it is equally true that the price of the staples be obvious from the declaration of almost every gentleman of exportation is diminished by the impost duties, to a cerwho has spoken against the proposed amendment, that this tain extent also. The duties must be paid either by the equalizatiou of duties on northern manufactures and south- producers, or by the consumers, or by them both. Whatero imports would give to the latter almost the entire pos- ever portion of the duties is not paid by one of these classes, session of the markets of the United States, to the exclusion must be paid by the other. In the actual state of the foof the former. All this conclusively demonstrates that the reign and domestic markets, I confidently believe that the manufacturers of the northern States are actually sustained principal burden falls upon the producers ; in other words, by the upjust discriminating duties imposed upon the pro- that the duties imposed upon foreign manufactures exbiductions of southern industry, and could not exist for twelve bit their effects much more in depressing the price of our months in a tolerable state of prosperity if thosejduties, agricultural staples in our own markets, than in the enwere repealed. And yet gentlemen, who admit this to be hancement of the pri of manufactures. But the gentletrue, have the modest assurance to tell us that the duties man from Massachusetts cannot conceive how the price of in question impose no burden upon the southern States, cotton can be depressed by our impost duties, and seems that does not operate eqaully as a burden open all parts of to suppose that if these duties depress the price of Amethe Union, and that the tariff bas nothing to do with the rican cotton in our own markets, they must equally dedistress and suffering and decay of the southern States ! press the price of foreign cotton in the markets of Europe.

Sir, it is vain that gentlemen attempt to wind their way. Now, the truth is nearly the reverse of what he supposes. through the labyrinth of inconsistencies in which they are If an export duty were imposed upon cotton, the gentleinvolved. To a mind capable of comprehending the sub- man would probably understand it. That would diminish ject, there cannot be presented a more palpable contra- the vale of cotton to the planter, almost to the full diction, than to assert that the repeal of the duties on extent of the duty, although it would not at all diminish southern imports would ruin the northern manufacturers, the price in Europe. If the planter receive the same and yet that the imposition of those duties is not as inju- price only for bis cotton, after the imposition of the duty, rious to the southern planters, as their repeal would be to ibat he received before, the duty most unquestionably falls the northern manufacturers. Such a notion can be main on bim. The gentleman seems to me to have failed'in his taided only by ascribing to the legislation of Congress the usual acuteness, in confounding the effect of our tariff upsupernatural power of imposing taxes which sball confer) on the price of cotton in foreign markets, and in our own

H. OF R.]

The Tariff

(MAY 11, 1830.

markets. Hence he infers that the American merchant sented as stating that the whole burden falls upon the who purchases the cotton of the planter, pays for it in producers, and do part of it on the cousumers. And money, as much as it is worth in Europe, deducting only whereas I stated that the duties imposed upon the foreigo the freight and charges ; and, from these erroneous pre- manufactures we received in exchange for cotton, bave mises, he infers that if any loss occurs afterwards, by re- the effect of depressing the price of cotton in the United ceiving goods subject to duty, it must fall on the merchant. States, I am represented as stating that those duties de

Now, the gentleman gives credit to the American mer- press the price of cotton in foreign markets. chant for a very small share of sagacity, in taking it for It will be recollected that the leading proposition which granted that he will pay the planter as high a money price I laid down, and to which all the rest were subservient, for his cotton as can be obtained for it in Europe, (de was that forty per cent. on the cotton, tobacco, and rice, ducting only freight and charges,) when it is known that exported from the planting States, might be fairly assumed the only purpose for which he purchases the cotton, and as the measure of the burdens imposed upon them by this the only profitable use to which he can apply it, is to give Goveroment. it in exchange for foreign manufactures which he will not Now, wir, if we assume that only one-balf of the burden be permitted to sell until he pays the duty. In fixing the of the imposts fall upon the planters, as producers, my money price of cotton in the United States, the merchants proposition will be most completely sustained: for I will updoubtedly take into consideration the duties they will now take into the estimate two very important items, have to pay on the returo cargo. These duties constitute which I did not think it necessary to present in my fornier one of the principal elements of the calculation upon argument. We have been told, this morning, by a geowhich the price of cotton is founded. It may be true that tleman from New York, (Mr. STRONG] that the tariff this calculation is not actually made by each individual States purchase from the plantiog States cotton to the merchant who purchases a lot of cotton; but it is equally amount of six millions of dollars. I believe this to be an true that each individual merchant does not calculate the extravagant estimate; and, though it would better subdemand and supply when he makes a purchase, though serve the purposes of my argument, I will not adopt it. every one knows that these are the two circumstances The true amount of cotton sold by the southern to the which infallibly regulate prices. This reasoning is con- northern States may be set down at five millions of dollars. clusively confirmed by a comparison of the prices current Assuming forty-five per cent. as the average of the duties of cotton in Great Britain and the United States at this levied on foreign manufactures, and that one-balf only of moment. Prime cotton now commands seven and a half this duty is taken out of the price of cotton, it will follow pence, or about fourteen per cents per pound in Liverpool. that the planters sustain a loss of twenty-two and a balf per Add to this the difference of exchange, and the differ- cent upon the cotton sold to the porthern mapufacturers. ence in the value of the currencies of the two countries, For whatever depresses in our own tparkets the price of which amount to eight per cent., and you have fifteen the cotton exported to foreign countries, must equally cents, or more, as the price of cotton in Liverpool, esti- depress the price of the smaller portion of it consumed mated in American currency. Now, sir, the very highest by the domestic manufacturers. Here, then, is a burden price that can be obtained in the markets of the United of one million one hundred and twenty-five thousand dolStates, is eleven and a half cents. Add to this two cents lars imposed upon the internal trade of the cotton plantfor freight and insurance, and other charges, a large al. ers, which does not go into the public treasury, but evilowance, and you bave thirteen aod a half cents as the dently into the pockets of the manufacturers. But this price wbich it costs the American merchant to deliver in is not all. If the planters receive, in exchange for this Liverpool the cotton for which he obtains fifteen cents. cotton, porthern manufactures, enhanced by protecting So far, therefore, from giving the planter as large a duties, they are subjected to an additional burden of one money price for bis cotton, deducting the charges, as he million one hundred and twenty-five thousand dollars, as could obtain in Europe, the Americab merchant reserves the consumers of those manufactures. I will assume, boxone aud a balf cents for his profit on every pound; where ever, that only half the amount of cotton sold to the as, if imported manufactures were freed from the discri- northern manufacturers is received by the planters in minating duties imposed upon them, and the importing domestic goods, enbanced by the protecting duties. From merchant could make his regular profit upon the merchan- this, it will follow that the planters sustain a burden of dise imported, every practical man knows that, as cotton one million six bundred and eighty-seven thousand five is the most convenient medium of remittance, it would hundred dollars upon this branch of their internal trade; command very nearly as high a price in the United States of which, one million one hundred and twenty-five thouas it would in Great Britain.

sand dollars results from the depression of the price of But the merchant must have his profit on one branch cotton, and half that sum from the enhancement of the of the exchange or the other. What your discriminating price of the manufactures received io exchange for it. duties in favor of domestic manufacture prevent him from There is another item to be added to the burdens of the making on the merchandise be imports, he must make southern States. upon the staples which he exports. Thus it is, sir, that They export grain, flour, lumber, turpentine, and vathe price of cotton is depressed in our own markets, more rious other articles, amounting to pot less than two milthan that of manufactures is enhanced, by prohibitory du- lions of dollars, in addition to their exports of cotton, ties; and, consequently, the largest portion of the burden tobacco, and rice. The burden they sustain, through of these duties falls upon the planters, as producers. If these exports, cannot be less than six hundred and fifty all the duties now imposed upon foreign manufactures thousand dollars, in any view of the subject. This sum, were repealed, and trade left perfectly free, I will hazard added to one million six hundred and eighty-seven thousand my reputation on the assertion that there would not be five hundred dollars, gives two million three hundred and a difference of more than one cent a pound between the thirty-seven thousand five bundred dollars, which must be price of cotton in Liverpool and in Charleston ; whereas added to the burdens of the southern States, besides what the difference now is two and a half cents at least. And they bear as the exporters of cotton, tobacco, and rice. here I cannot but remark that the geotlemen opposed Now, if even we grant that only one-balf of the burden to me have, in scarcely a single instance, stated my pro of the duties imposed upon the foreign trade of the positions correctly, and met them fairly. Whereas 1 planters is paid by them as producers, yet they will pay, stated that at laast one-balf of the burden of the duties even in that view, twenty-two and a half per cent on laid upon imports falls upon the producers of the exports thirty-seven millions of dollars of exports, amounting to given in exchange for them, as producers, I am repre- eight million three hundred and twenty-five thousand

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