country, as to their quality or price, and therefore there is no propriety in calling the course of trade, the course of its choice.

The subject before the Committee naturally divides itself into navigation and manufactures, in speaking of which, I shall offer some other considerations, to show that the same effects are by no means to be expected from the greatest commercial wisdom in individuals, which are in the power of the general concert of the community; the one having in view profit on each separate transaction, the other, promoting an advantageous result to the whole commerce of the country.

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own productions, but also from the varied experience of America. Before the Revolution, every thing for European consumption was carried to Great Britain, but, since America has possessed shipping of her own, and in the Northern States, there has been an accession of capital, the export to England is reduced one-half. It is true, indeed, that there is still nearly one-half of what she receives, that is re-exported, but it will be found that she still retains a proportioned share of those influences which formerly carried the whole. Great Britain, under all the discouragements of our laws, which we are told by the mercantile members of the committee, amount to a prohibition where they have any rivals, did, until the European war, possess one-third of the foreign tonnage employed in America. This has been supported by the dependence into which the Southern States were placed by credit, and here, as in every other step of the connexion, this engine extorts advantages from us, beyond the compensation which is always secured in the first advance. If there wanted other proof of the British interest in the American navi→ gation being supported in direct opposition to our interests, it may be found in the comparative state of the tonnage employed, where it appears that, after the protecting duties once had their effect, the additional tonnage, to a considerable amount, has been entirely American, and that the British tonnage has remained very nearly stationary, and in proportion to their undue influence.

In considering the importance of navigation to all countries, but especially to such as have so extensive a production of bulky articles as America, I think I shall show that the last observation is accurately right, and that the interest of the whole community, not those only who are the carriers, but those also who furnish the object of carriage, positively demands a domestic marine, equal to its whole business; and that, even if it is to exist under rates higher than those of foreign navigation, it is to be preferred. In circumstances of tolerable equality, that can never however entirely be the case; for, in the carriage of the produce of one country, by the shipping of another, to any other place than the country to which the shipping belongs, there is considerably more labor employed, than would have been by domestic shipping, as the return to their own country is to be included. On this ground, it may be confidently In time of war, in addition to the inconveniasserted, that where the materials of navigation are ences before stated, which are enhanced by throwequally attainable, they will always be more ading the trade from its accustomed channel, there vantageously employed by the country for whose use they are intended; and that if, under such circumstances, another country is employed as the carrier, it must be under the influence of some other cause than interest, as it respects that particular business. A dependence on the shipping of another country tends to establish a place of deposite in that country, of those exports which are for the use of others, if it is at a convenient distance from them. The superintendence of property makes short voyages desirable for the owner, and the connexion that soon takes place between the money capital of a country and its shipping interests, greatly strengthens the vortex. The attainment of wealth beyond the demands of navigation, leads to an interest in the cargo itself, and then the agency in selling to the consumer becomes important. It is apparent that, as the final sale depends on the wants of the purchaser, all intermediate expenses of care and agency must be taken from the price to which the maker would be entitled. Our own commerce has involved this loss, in a remarkable degree, and it has gone to an enormous extent, from a necessity of submitting to the perfidy of agents, arising from a dependence established by means of the so much boasted credit.

That there is this tendency in the employment of foreign shipping, is not only proved by the commercial importance of Holland, which became thus from her naval resources the store-house of Europe, without furnishing anything from her

are great and important losses brought on a country by this kind of dependence. If your carriers are parties to the war, you are subjected to the war freight and war insurance on your cargo, and you are cut off from all the markets to which they are hostile; and, indeed, from our experience in the present war, I may say you are cut off from the market of your carriers themselves, as it would have been impossible for British vessels to have escaped in our seas last Summer. To what extent this loss goes may be seen from a calculation in the Secretary of State's Report on the fisheries, making the proportion of war to that of peace in the one hundred years, as forty-two to one hundred; and on that calculation there can be no hesitation in determining that the interest of the farmers requires that this foreign dependence should end here.

But the European war, by making a temporary exclusion of British shipping, has already brought on us the greatest mischief of such a regulation; and, by the encouragement it has afforded to our shipping, almost completed the remedy; so that we have reason to consider this as a fortunate period. But, it is not merely the advancement of our marine that is contemplated by the present resolutions, the security of that which we have is also dependent on them. The danger from the Algerines has been estimated in this House at five per cent. on the vessel and cargo, but the whole encouragement to our own shipping in our exist ing laws consists in the one-tenth additional duty

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[JANUARY, 1794.

on all hands that many important arts are well understood there, and that labor, which forms the principal part of the cost of most articles, is considerably cheaper in France than in England.

on goods imported in foreign vessels. Whenever there shall be an European peace, which cannot be far distant, the whole difference between the two sums will be a direct encouragement on British ships and will probably be equal to two freights. Another very important operation of a discriDo gentlemen rely on the precarious prospect of mination in favor of France will be that, by enbuilding frigates, and the more precarious service couraging liberal industry, you may put an end to to be rendered by them when built, so much as to some practices which, in the existing state of conneglect any other regulations for the safety of our sumption, greatly depreciate our commodities. I shipping when they are so much in their power? mean the public provision made in granaries, and Having shown that the actual state of our com- the supply from them in times of scarcity, which merce is by no means the most beneficial, as far destroys the competition that raises every thing as navigation is concerned, I will proceed to con- to its just value. Different consequences have sider the benefits derived from the consumption been foretold as likely to result from those meaof those European manufactures which form the sures, to which I shall give a short examination. principal part of the stores of America. And We are told that the preference long since given here it may safely be said, that national policy by by our laws has been equal to a prohibition of no means justifies the almost exclusive preference British vessels, and that, to the extent to which it given to those of Great Britain. It is not always has gone, the best effects have been produced. To true that the commodity which is bought for least secure this operation from a recent attack, and at money is the best bargain, for the means of pay- the same time to extend it to some branches of ment form an important consideration in all traf- trade, to which its principles would equally exfic, and accommodations in it may more than tend, is the object of the marine resolutions. We counterbalance an inequality of price. If one have no reason to apprehend bad consequences man will receive an article in exchange which from an action which has hitherto had good conyou can sell to no other, it will certainly be a sav-sequences. As to the increased duties on manuing to deal with him at a high advance on his factures, I think the prospect in no way threatenproperty. If there are countries which would be- ing; for, if there should be found no country to come great consumers of American produce, on supply our wants on better terms, the diminution the terms of reciprocal consumption, and we find of consumption will be only in proportion to the a difficulty, as is often the case, in vending that duty. This can be by no means alarming, conproduce, is it not of great national importance to sidered as the worst consequence of the measure excite those acts which are to become the founda- to men with whom the impost is the favorite tion of the connexion, even if, in the first instance, mode of collecting the revenue, at a time when it is to be attended with inconvenience and loss? the public wants are equal to any possible produce. France may be made a connexion of this sort. If there shall be found a competitor with Great She is at this time almost, if not quite, on a foot-Britain for our consumption, the great object will ing with Great Britain in the consumption of be attained, as it must be accompanied by a corAmerican products, and every hand which shall responding consumption of American productions. receive employment from us will add to her wants. But we are told that there will be a conflict of We are told that it is of no less importance to us commercial regulations between this country and to find a country which can supply us advan- Great Britain, and that the consequence will be, tageously than one which will consume our pro- the loss of the market she affords us. ductions; and that, as commerce is no longer car- bable consequences of such a conflict will best deried on by barter, it is no less beneficial to sell in termine whether it is to be expected, as it will one country and buy in another than if we could commence on her part as well as ours, with a complete the exchange in the same country. This view to consequences. The danger which she might be true, if your production was limited, and can alone apprehend is the loss of the market for the demand for it certain; but, with a greatly im- her manufactures; and to obviate this, it would proving agriculture, and some risk in our markets, be absurd to widen the breach between us, as that the object is important. Great Britain being the would tend, in a direct proportion, to the establishfactory of those things which would make her ment of unfriendly habits and manufactures, either most dependent on the agricultural interest, and here or in other countries, which would rival her the national wealth being probably at the greatest own. If, however, the ultimate advantage would height, there is no expectation that her consump- justify such measures, the immediate distress of tion will increase. On the other hand, as labor is her people would forbid it. The American trade now to receive its direction in France to the ma- must be the means of distributing bread to several nufacturing arts, so far as concerns America, you hundred thousand persons, whose occupations will take from the agricultural strength a large would be wholly ended with the trade, and the class of people, and by that means create a de- Government is by no means in a situation to bear pendence on you, at least to the amount of their their discontent. Their navigation and manuown consumption, and the wealth you will diffuse factures draw many important ingredients from will give ability to thousands who are now too America which would be lost to them. The crepoor to bid for your commodities. Nor is it pro- ditors of the people of America, to an immense bable that you will purchase this important bene- amount, would be deprived of the remittances fit on very disadvantageous terms; for it is agreed which depend on a friendly intercourse. On the

The pro

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Lessening the importation of foreign manufactures will increase our household fabrics, which experience has proved to be highly profitable, as the labor is done by a part of the community of little power in any other application. Regular efforts in this way have been, in my country, certainly productive of independence.

It is acknowledged that we may derive great advantages from France in our commerce, but it is said they should be secured by treaty, and we should not pay beforehand for them. If advantages are to be drawn by treaty from foreign nations, to enable the Executive to procure them, we must advance the impost beyond the revenue standard, or they will have nothing to give in exchange. Will gentlemen agree to involve France in this measure indiscriminately, when we have already a commercial treaty with her, which was concomitant with that treaty which gave of friendliness, and while they are laboring under a revolution that must strengthen our connexion, show distrust of their justice, when the distinction now proposed may give them a knowledge of those advantages they may derive from our trade, and thereby make them more eager for a permanent contract? It will be always in our power, when we find ourselves deceived, to restore the equality with Great Britain. We are asked what will become of our revenue under such an establishment? The answer is obvious, from my former observations: if the consumption is reduced only by means of revenue, the revenue will increase; if it is lessened by competition, it will not be diminished, for the present rates will continue on all foreign goods, and we shall be better able to pay from the improvement of our foreign markets. But if there should be a diminution without lessening the power of the people to pay, what mischiefs will there be? Every body understands that the people pay the revenue, although it is collected by custom-house officers, and there is reason to believe that the expense of collection is greater in that way than any other, as there is not only the apparent expense, but a secret compensation to the merchants for advancing it.

whole, it would add to the disorders of the Go-lated, they always fall short of the income, and vernment among those who, perhaps, have here- that, when they depend on credit, they always tofore contributed to its support, without gratify-exceed it, and thereby subject future revenue. ing anything but an arrogant resentment. But we are told that our own citizens would be equal sufferers, and are more to be injured by being stopped in a career of rapid improvement. It will be hard to anticipate any real misfortune to America in such a contest, unless the temporary loss of indulgencies, which are by no means necessary, can be so called. The consumption of Great Britain is, according to the most friendly calculation, not more than one-third of our purchases from her, and, therefore, the national wealth, independent of the gratification of our appetites, will receive an immense addition, and a vast fund will be procured to make lasting and valuable improvements, which would be degraded by comparison with the gewgaws of a day. It is to be remarked that the diminution of our exports would be divided among large classes of people, and in all cases forms a deduction from the annual income, rather than a total loss. This will result from the various ob-us independence? Will they, under such proofs jects of American industry and the division of the markets of its produce. This forms an important difference between America and Great Britain, in an estimate of the effects of a rupture between the two countries. In my opinion, the habits of the Southern States are such as to require the control which is said to be the consequence of these measures. Under the facility offered by the modes of trade before spoken of, and the credit which is said to be so beneficial, they have not only involved themselves in debt, but have contracted habits which, with the power of gratification, must always keep them so. We did hope that the administration of justice would have corrected the evil, but we now find that it cannot be corrected but by entire changes. It is founded in the policy of the merchant himself, and this circumstance is enough to present to the minds of the Committee a long train of dependent mischiefs. It is a fact, supported by the best evidence, that our merchants who get their goods from the manufacturer pay as much for them as the shopkeeper who buys at Baltimore or Philadelphia. This is one of the consequences of the want of credit which always will follow a reliance on collection from farmers; and there can be no doubt that the merchant is indemnified for his disgrace as well as But we are told that we are including countries his advance. The result of the whole train of in- in the general description which are our best cusdulgence is, that our goods are bought at an ad- tomers-Spain, Portugal, the Hanse Towns, and vance from a half to one-fourth of what they could Denmark. It will be found that they are little be afforded for in cash sales. Nor does the mis- within the reach of the propositions, not being chief stop here. It brings a subjection which ma- carriers, and very little manufacturers of the artiterially affects the sale of our produce. I do be- cles to be taxed. It will be in the power of the lieve, myself, that the war with Great Britain did Legislature to save them, in filling up the blanks; not bring half the mischief on us that their credit but this is not intended to shut out any nation has; and I very much suspect a credit for con- which chooses to trade with us on liberal terms; sumption will always be found equally mischievous. and, if we are satisfied with our footing in their It by no means resembles money loans, as is in-trade, there is no doubt but we can secure it by sinuated by the gentleman from South Carolina, by freeing a man's own resources for any other use. It is certain that there is no other safe regulation of a farmer's expenses than his income; and experience every day proves that, when so regu

treaty. They will not complain of our taking away benefits which they may resume at any time. We are told that this business is merely commercial, and that we should not think of our political relations to Great Britain; but, in my

Commerce of the United States.

opinion, most of our grievances have commercial objects, and therefore are to be remedied by commercial resistance. If you take away what is contended for, contest must end. The Indian war and the Algerine attacks have both commercial views, or Great Britain must stand without excuse for instigating the most horrid cruelties. I consider, however, the propositions before you as the strongest weapon America possesses, and the most likely to restore her to all her rights, politi-guish any one by its favors, we are left only in the cal and commercial; and I trust I have shown that the means will have a beneficial effect, if they should fail as a remedy with respect to Great Britain.

If we raise the duties on their manufactures imported into this country, as is proposed by the resolutions now under consideration, with a view of compelling them to be more liberal in their Let us examine what advantages we enjoy in commercial arrangements with us, we shall surely consequence of any commercial treaties we have miss our aim, for it is certain France in her prealready formed, for the propositions before us are sent situation is by no means able to supply us, proposed to affect only those nations with whom whatever she may do hereafter. No other country, we have no treaties. We have commercial trea-at present, but Great Britain, can supply us; it ties with Prussia, Sweden, France, and Holland, therefore follows, undeniably, if such be the fact,

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that if we import their goods and lay an additional duty on them, the blow aimed at them will fall on us, by raising the price to the consumers in this country equal to the proposed additional duty.

It is said the chief of the foreign tonnage that comes to this country is British, and this is an evil; if our object is to promote our own navigation, I should suppose the evil consisted in having our trade so much carried on in foreign bottoms, and not as belonging to one or another foreign nation; and, if we meant further to encourage our navigation, we ought to raise the tonnage duty on all foreign shipping; this would be coming to the object. But how comes it we have so many more British ships than others? Have we granted them a monopoly, or may not the ships of every other nation come here on the same terms they do? The reason, then, why there are so many more British than other foreign ships which come here, is not because we have encouraged it by any regulations we have adopted, but because they are a more enterprising, commercial people than their neighbors, and from other causes which will ever influence and direct commerce.

It is also mentioned that a considerable part of the products of this country shipped to Great Britain, is not consumed there, but re-shipped to other countries, and that we ought to make such regulations as that such excess should pass directly to the country where they are consumed, without their first going through Great Britain.

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dress. The English have violated our Treaty, just after it was ratified, by taking away our negroes, and since by holding our posts; they have also set the savages on our backs, and have not they let loose the Algerines upon us? Shall we sit still and bear it? How can we help it, it is asked? They will retaliate, we are told. How retaliate? will they refuse to sell us their manufactures? He remembered that, even in old times, a non-importation agreement made them repeal their stamp act. We have surely as well now as we had then a right not to buy their goods; we don't want to cram our provisions down their throats, or to force them to buy our lumber. During the non-importation agreement, we did not perish with cold; we found, even then, that among ourselves we could make wherewith to clothe ourselves; we are surely as able to do it now. We then gained our point; we should now be much more powerful with the same weapon; many of her manufacturers are already starving for want of employment. We should add greatly to their distress, and soon bring the Government to their senses, and they will be glad to enter into a commercial treaty with us.

The balance of trade with Great Britain is much against us; and by carrying to Portugal and Spain what we send to them, we should receive cash in return. France will not always be in a storm, and a supply of the manufactured articles we want may soon be received from that quarter.

He did not see to what purpose calculations three hours long had been brought forward. It was very well for merchants to calculate in their counting-houses; but he conceived the Legislature should determine the question upon political considerations. He concluded by remarking, that he believed by this time the Committee must pretty clearly see that he was in favor of the resolutions.

I should think it strange if any one was to refuse selling an article because he understood the person who wanted to purchase it would not be the consumer, but he would afterwards sell it to another; this would not certainly influence, and ought not. Let us examine and see whether our navigation has received any encouragement by the regulations already adopted by this Government. In 1790, our navigation was but little more than one-half of all the tonnage entered in the Mr. PARKER considered the resolutions on the United States; in 1791, it was three-fifths; and in table as indefinite and unintelligible. If revenue 1792 it was nearly two-thirds. Foreign tonnage is the object, we should remember the remark of has actually decreased since that period 14,000 Dr. Swift, that in the arithmetic of taxation, two tons, while ours has increased 171,000 tons. If the and two do not always make four, but sometimes increase is not sufficient, then we must increase only one. He thought there was a jarring in the the tonnage duty on foreign shipping, and take third resolution, which contradicted the first. such other measures as I have hinted at to pro- The leading clause of the first resolution, which mote the object; though I confess such is our deli- has occasioned so long a debate, is in these words: cate situation at this time, I am inclined to believe" That the interest of the United States would be experiments are hazardous; and I should be strong-promoted by further restrictions and higher duly apprehensive, if we pass any restrictive laws at ties, in certain cases, on the manufactures and nathis time, that shall affect Great Britain only, as vigation of foreign nations employed in the comis the avowed object of the resolutions before us, merce of the United States, than those now imsuch is her close alliance with most of the Euro- posed." The third resolution which Mr. P. repean nations, and especially with Spain, that she ferred to, is in these words: "That the duty on will be fully able to influence some of them at vessels belonging to the nations having commerleast, and Spain in particular, (who is not very cial treaties with the United States, ought to be friendly,) to be associated with her in any counter reduced to per ton." The resolutions meant regulations she may think proper to pursue by either too much, or nothing. He would move to way of retaliation. amend the first resolution, but that he hoped it would be altogether cast aside.

Mr. CLARK differed from many members who had spoken before him, in the view they took of the subject; he conceived it ought to be considered in a political light. We had many wrongs to complain of, and we should endeavor to obtain re

Mr. S. SMITH, of Maryland, rose and apologized to the Committee for presuming to intrude upon them a second time by the delivery of his sentiments. He said that a personal attack had been