specie; second, the loss of our exports; and, third, that commerce and agriculture are overdone.

On each of these, I must make a few remarks. In relation to the balance of trade, the gentlemen turn to our public documents, and showing from these, that we import more than we export, at once conclude, that the balance is against us. During the last year, say they, we actually imported goods to the amount of $77,579,267, while we exported only $74,699,030, from which they infer, that the nation fell in debt nearly three millions of dollars. But, will gentlemen call to mind, that we employed in the importation and exportation of these goods, 800,000 tons of shipping; and as the capital invested in those ships, must of course, have yielded some profit, it was necessary, that we should import, not only the value of the merchandize exported, but the amount of the freight. The imports of every country that carries on a profitable trade, must, therefore, exceed the exports in value, by an amount, at least equal to the profits. There is one fact, connected with this subject, which I should suppose would remove the doubts of the most sceptical, and prove beyond a question, that the Custom-house returns, afford no data, from which the balance of trade can be ascertained. It is, that according to these returns, we must now be indebted to Great Britain in the immense amount of $270,000,000. This, no rational man can believe. The truth is, this is the amount of our gains, and not of our debts.

Though gentlemen have argued this point with great earnestness, I really cannot persuade myself, that it is necessary to say much in reply; I will merely advert, therefore, to one or two facts, in support of my views. It has been stated, in a recent publication of unquestionable authority, that thirty-nine vessels sailed from Portsmouth, N. H. in one year, in ballast; that these vessels were employed in the carrying trade in Europe, and realized a clear profit of one hundred and fifty thousand dollars, with which they returned to the United States. Now, according to the Custom-house

books, it appears, that in this case, we imported one hundred and fifty thousand dollars more than we exported, and this sum is actually included in the balance, Can it eswhich the gentlemen set down against us. cape the notice of the gentlemen, that, according to their mode of calculation, a cargo lost in the ocean, or sold in Europe for half its value, creates a balance in our favor, while one doubled in value, swells the balance against us? The plain truth is, that we must import more than we export, or we carry on a losing business, and precisely as we make successful voyages, will be the enhanced value of our return cargoes. No higher evidence can possibly be furnished of the prosperous state of our commerce, than, that our imports uniformly exceed our exports, and this excess has always been greatest when our trade has been most prosperous. It is so well understood and acknowledged in Europe, that a prosperous trade cannot exist without importing more than you export, that when the statements of the Custom-houses in England have exhibited a different result, the circumstance has been accounted for, by showing, that it has arisen, entirely, from the difference between the official valuation and the actual value of goods. I hold in my hand an excellent article from a late English magazine, which is perfectly conclusive on this point.

Both, the gentleman from Kentucky, (Mr. Talbot,) and the Chairman of the committee, have treated this subject, as if all importation ran the country into debt. Now, I would seriously ask those gentlemen, whether they believe, that when we export our produce, we make a free gift of it to a foreign nation? Or, can they imagine, that in sending us their goods, they are bestowing a gratuity? If not, it follows that each party must receive some equivalent, and this is found in the exchange of commodities, on terms mutually advantage

ous.

Nor does the intervention of specie make the least difference in the case; for though silver is used as a standard of value, yet it is only a commodity, which, like all others, is obtained in exchange for pro

duce. There can be no drain of specie, therefore, while trade is free, and we have any thing to exchange for it. And what possible difference can it make, whether we pay for an article in produce, or in the gold and silver, which we buy with that produce? But here my friend from Kentucky, (Mr. Johnson,) asks," whether we mean to contend that there is no such thing as a balance of trade?" In answer, I will state, that a nation may import from a particular place, or in a particular year, more than a fair return for the articles exported, and in either case, a debt may certainly be created. But from the very nature of trade, this can only exist for a short period, the over importation from one place, or in one year, being necessarily balanced by under importations from other places, or in other years; and thus, in a series of years, the whole amount of imports and exports must balance each other. Sharp-sighted and experienced importing merchants, are not at all like "spendthrift heirs." They do not go on increasing their imports, beyond the means of the country to pay for them; nor does the foreign merchant continue to send on his goods, after he finds that his customers cease to make remittances. The accounts are balanced at stated periods, and the debt is paid, in the only way by which such a debt ever could be paid-by the produce of the country. I conclude, therefore, that if a nation exports, it must import, and so vice versa. As a general rule, all parties concerned in trade derive a profit. It is the increased value given to commodities, by labor or art, or by the mere act of transportation, which is the foundation of commerce. We put a few seeds into the ground, and by labor, aided by the elements, convert them into a valuable commodity; we put a raw material into the loom, and by labor, aided by machinery, convert it into an article fit for ornament or use; one of these is exchanged for the other, and both parties gain. In this way, the world is perpetually progressing in wealth and refinement; and every advance that is made in science or in art-every new impulse

e

given to industry, adds to the comfort and happiness of mankind. I repeat, therefore, that all trade is profitable, and so far from mourning over the immense amount of our imports, we may resort to them, as affording, not only conclusive evidence that we are going on prosperously, but as furnishing almost the standard by which that prosperity can be measured. Gentlemen may be assured, we cannot import without exporting, and that our interference is unnecessary, as the subject will regulate itself." Away then, Mr. President, with this argument of "the balance of trade."

But the gentleman from Tennessee (Mr. Eaton,) insists, that there is one fact, which demonstrates that the balance of trade must be against us; that fact is, the rate of exchange, which he states, is now no less than eight per cent. in favor of Great Britain. The Chairman of the committee, as well as the gentleman from Rhode Island, (Mr. D'Wolf,) have also strongly relied on this circumstance. Now, are these gentlemen not aware, that eight per cent. premium on bills of exchange on England, is, at this time, actually below par? It is manifest that the nominal rate of exchange, can furnish no evidence of the actual difference, except where the standard of value is the same. If the currency of one country should be coin, and of another depreciated paper; if gold be the standard in one place, and silver in another, or if the coins be of different value, the rate of exchange must be influenced by all of these circumstances, and could furnish not the slightest evidence of the true balance of trade. Is it not obvious, that, under ordinary circumstances, the difference of exchange between countries, whose currency is the same, would be merely the expense of transporting specie? Why should an American merchant pay a debt in England by a bill of exchange, at eight or ten per cent. premium, when the expense of sending the specie to England, would not exceed two per cent. Gentlemen will see at once, therefore, that there must be a fallacy in their argument; for if the

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premium of eight per cent. on bills, was the measure of the real difference of exchange, no bills would be purchased, but specie would be shipped. The truth is, the currency of the two countries is different. In considering the rate of exchange, between the United States and England, it must always be recollected, that practically, silver is the standard of the United States, because in silver only all payments are made, while gold is the standard in England, because in gold alone all payments are made, silver not being even a legal tender for sums above two pounds; they are then not susceptible of direct comparison, being things entirely dissimilar, and must be compared by some indirect mean. This mean is familiarly known in practice, and is obvious in principle. It is as follows: compare the standard value of a given quantity, (an ounce for instance,) of the pure contents of our silver coin, with the market value in England, of the same quantity of pure silver. I hold in my hand two statements, obtained from gentlemen, perfectly conversant with the subject. The first exhibits this comparison, in a case when the market value in England, is supposed to be four shillings nine and a half pence per ounce of Spanish dollars. There is a difference between Spanish and American dollars, which this paper also explains. The second, is an extension of the principle of the first, and shows the apparent loss, but in truth, the real par of exchange, in the several instances, which it enumerates. From these statements, it appears that exchange on England, being at fifteen per cent. premium, and Spanish dollars in the English market at four shillings and sixpence per ounce, is really at par, because the bill of exchange of one hundred dollars, which is purchased at one hundred and fifteen dollars, will procure in the English market one hundred and fifteen Spanish dollars, and when dollars are at four shillings nine and a half pence in the English market, (which is about the present price,) if exchange on England be below eight per cent. it is below par, and in favor of the United States. I have this day