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JANUARY, 1794.]

Commerce of the United States.

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by bills; for, as the trade is free to leave her, as jects over which we had no certain control. He the merchants, actuated by interest, would buy as would remark, that such a state of navigation, at cheap as possible, we are fairly to conclude, that present, assumed two things as its basis-a great they sell some of our raw materials and products and manifest disproportion between all the branchto more advantage in other ports than hers, but es of industry dependent on ship-building and nayet purchase in her's cheaper; so, the commerce vigation, and the other trades; and our power of must be a beneficial one, or they would naturally becoming carriers for other nations, which would forsake it. That our exports are greater to Portu- not be the case if maritime Powers acted with their gal, Spain, and the United Provinces, than our accustomed vigilance. Unless the last employimports from thence, is a proof that they give good ment were provided for by the regulations of foprices for our products; but from want of assort-reign Powers in favor of our ships, the first would ments, or from their manufactures not being as be a serious evil. He thought it a safe proposisaleable here, or as cheap as those from Britain, tion to which nothing but wild and crude specuour merchants make up by bills from those places lation could be opposed, to say, that, as long as on London, to supply the deficiency of the export our right to be the carriers of other nations was to that port. With respect to predilection for not submitted to by them, the power to export all Britain, introduced as a ground of consumption, the raw materials of this country and its products he did not believe it existed; certain he was, he would be an evil. This regret of gentlemen, he felt it not himself. He could see nothing in the believed, to be founded on a comparison of this mere exercise of taste, in the consumption of ma- branch of trade here and in other maritime counnufactures, or preference of what was well manu- tries, as Holland, England, and some others. A factured and cheap, that was connected with the little reflection would, he believed, afford consolatheory of political sentiment. In this country, no tion, by showing that their comparative superiorisuch predilection for that nation existed; on the ty in the carrying business resulted from a solid contrary, he believed the most substantial inte- difference in the situation of these countries, and rests of commerce were now at hazard, from the of the United States; nay, that this very superivery prejudices which were used by gentlemen ority is the result of necessity more than choice; sometimes to prove the very reverse. As to the a necessity which the free and happy citizens of perfect freedom of trade, and that universal treaty, this rich and abundant country did not feel, and of which the gentleman from Virginia [Mr. GILES] which they would not feel for ages. The carrygave us a hint, but no outline, the other day, he ing trade of this country will never be equal to its questioned much if the accidental variance among exports, till the population of America bears a nations, on which substantial differences had been nearer proportion to the lands and the raw matemoulded by habits, rendered the thing possible, rials; till each branch of industry is proportionand were it possible, whether all young countries ably supplied with labor; or the foreign Powers that were not on even terms of manufacture, and admit our carrying trade to a fair competition ready for a competition of ingenuity, would not with their own. It is true, that we abound in arsuffer extremely by the institution; he was sureticles of immense importance to the European this would. The idea was a benevolent one, but it was not one that could bear practice. On all questions in which great and complicated interests were under speculation, when habit, and modes of life and taste, and an immemorial course of things were to be considered, he always wished to see much respect paid to the past as well as the existing order of such things, as long as the result of the whole seemed to be a great and certain share of national prosperity. It was, Mr. MURRAY observed, a difficult and hazardous thing to attempt to define with precision the particular cause of prosperity; it led to political quackery. We know, however, with certainty, that never did a country so rapidly move forward to perfection as do the United States-that our navigation has increased since the adoption of this Government, in proportion to other branches of trade, and that our commerce is both useful and ornamental, and the instrument of a revenue essential to the payment of a debt that we must discharge. He said the complaint of gentlemen who supported the resolutions, that our tonnage was inadequate to our exports, was in his mind an inconsiderate and fallacious species of regret. It might be a desirable thing were our tonnage equal to our exports, but even this would be a good or an evil, as it might be connected, or not, with ob

artist, but they are so extremely bulky and heavy, that it is clear our exports require more than double the quantity of tonnage that the imports demand. The exports are, tobacco, rice, grain of all sorts, lumber, pot and pearl ash, and such heavy and bulky products; whereas, the imports are manufactures, small in bulk, high finished, light, portable, and of great value, for the space and tonnage they require in transportation. The proportion between them both is of value, and not of size. The first and great tendency of all things here, is towards agriculture and the rougher arts, as lumber-getting, which belongs to agriculture; the other arts and pursuits are but auxiliary to this main body of the national calling. This predisposition and tendency will be for ever keeping up the ability to furnish the raw and bulky article of export, while it irresistibly disfurnishes the shipyard and its dependent arts, of that industry which would be necessary to complete the power of affording domestic tonnage equal to the export; that is, we can afford more labor in the procuring of the export, than we can spare to the arts of shipbuilding and navigation. These pursuits that belong to agriculture and a settled life, are more congenial with our country, where freedom and plenty invite to marriage, the rearing of families, and the acquisition of lands. At present, he believed

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the seamen engaged in the foreign American tonnage, to say nothing of the coasting trade and fisheries, which doubled the amount, were more than in proportion to the citizens employed in the mechanic and manufacturing trade, making the relative proportions between them in England, the standard to judge by.

The tonnage rapidly increased every year; and, he took it for granted, would observe a due proportion under its present great encouragement, which amounted just to an easy protection to stimulate industry and secure cheap imports, without giving a rash monopoly to that branch of business and here, he would remark, that, under the existing regulation, the very best consequence flowed in on the consumer. By the additional duty of ten per cent. on goods imported in foreign bottoms, and the addition of forty-four cents per ton, we secured the importation of foreign goods to American tonnage, and by this means bought cheap; and, by leaving your ports free to foreign vessels, under an easy tonnage duty, there is a competition kept up in the domestic market for those exports, for which the foreign tonnage comes into your harbor. Thus, already we buy cheap and sell dear at home. The competition that arises in our markets, in consequence of foreign ships becoming carriers of the surplus over that to which our own tonnage is equal, certainly raised the price of all things exportable; and a sudden and violent check in this order of things would vitally affect the agricultural, the lumber, the tobacco, and all the more bulky objects of exportation.

It appeared, then, to him, that the anticipation of effects from the resolutions, on the point of disproportion between our exports and tonnage, was calculated on a growth of navigation forced, unnatural, and pernicious; a growth that would call off from other employments the labor which is better bestowed as it now is, in increasing our ability to furnish, by enlarging the powers of agriculture.

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ships, advantages, in which participation was contemplated. In the two great scenes, France and Great Britain, to which American habits and course of business would most probably lead, and from whence the manufactures were to be imported, the American carrier would find himself, after unlading his export, under restrictions which would force him to seek distant and circuitous trading voyages, or return home in ballast. In both these countries, he would find his enterprise checked by their respective Navigation Acts-for Monsieur Barrere has reported a Navigation Act; it has been adopted by the Convention; and, as far as it respects the carrying trade, precludes us, except merely for our own productions. The artificial progress of things in France in manufactures, her political rivalries, and her Colonial relations, one would have supposed, would long since have pointed out such an imitation of the English act. The English act seemed dictated by necessity arising from causes, which, somewhat resembling those of France, find little analogy in the present circumstances of this country.

When imitation is pointed out to us as a piece of policy, it is a duty to view our actual situation to discover similitude of principle and causes; and to estimate the importance of differences between national qualities here and in countries of whose practice and systems an imitation is proposed. If the situations, times, and causes are similar, there will be plausible ground. If other causes of national prosperity, more eligible than those of other countries, present themselves to our view, we ought to be cautious, certain, and slow to decide. Very remarkable differences are palpable here from the circumstances that seemed to him to have forced the carrying Powers of Europe to be such. It was important to view them, for political contentment would result from a comparison in which we found our difference.

In no country, that Mr. MURRAY recollected, did the history of the carrying trade show us a people overflowing with raw materials and natural wealth, inhabiting a new, extensive, fertile soil, who became great carriers.

A sudden alteration which would, for a considerable time, check that competition between the foreign carrier and our own, for our products, would surely do mischief; nor could he see into If we examine the causes that made Venice and what line of employment, except the mere carry-Genoa, and other free States of Italy, the carriers ing of our exports, would so immense an addition to our navigation be led; for, unless foreign Powers permit its participation in that branch of trade which, from local consideration, has ever been deemed so precious to them, the tonnage that conveys the exports, over and above that quantity of it necessary to the imports, must return in ballast; that is, if the export requires six hundred thousand tons, and the imports but three hundred thousand, there will be the half of our tonnage employed abroad, either in voyages that will but lit-rying trade. tle benefit our country, which wants internal labor more than foreign enterprise, at least of so useless a kind, or it will return in ballast.

But, even admitting its policy, he had no evidence of the only thing, which, combined with the idea of a navy, could render the object attainable, he meant the relaxation of the great navigation systems in Europe, which secured to their own

for the West of Europe, through the Straits of Gibraltar, to all the States that were rich enough to purchase, or refined enough to enjoy the luxuries of Asia and the Mediterranean, we find them small, with no extent of fertility or soil; and with a population overflowing, and disproportioned to the land, labor, or its produce. The Hanse-Towns, the Dutch and the English, with a few shades of difference, were similarly situated when they became the successors to these Republics in the car

Had all of them abounded in those bulky raw materials which arise from a soil like ours, with sparse population, with a great disparity between labor and its objects, they never would have been the great carrying nations they were. We should have seen something like that equipoise of employment which the genius of our own country leads to; and agriculture at least disputing the

JANUARY, 1794.]

Commerce of the United States.

pre-eminence with navigation, which in our country is but her handmaid.

We have, indeed, seen similar habits and systems. The insular position of Great Britain, her neighborhood and hostile rivalship with the Dutch, who preceded her in arts and in navigation, pointed out the Navigation Act to the Parliament, in 1651, as an instrument of resentment-and it seemed naturally to arise from her national qualities.

But it is observable and important, in considering the cause which rendered that act advisable, that, notwithstanding her insular situation and her fulness of inhabitants, there was wanting for half a century that co-operation of causes which occurred to give it all the efficacy it has been attended with since.

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that all our powers would gradually ameliorate together; and if left, as they have hitherto been, more to the exertions of an enterprising spirit and freedom, than rigidly directed by speculation and theory, they would, in the fulness and seasonableness of time, accomplish the extent and grandeur of design which nature seems to have destined as the social and political character of this country.

He was willing, therefore, to trust as much as possible to the operation of those causes which, whatever they were, had hitherto, under a fortunate neglect, produced effects and a prosperous train of things, which perhaps human contrivance and speculative wisdom had never attained for us. Had they meddled more than they have, they might, from the pernicious force of imitation applied to a scene which had not its like upon the The proportion of British and foreign shipping globe, have thwarted that course of things which was but little in favor of England till eleven years nature pointed out, and which has been successafter the peace of Ryswick; at which period, in fully pursued. He could not, therefore, feel the 1697, the British tonnage was 144,000, and the fo- force of a system that certainly meant to tamper reign tonnage 100,000. The causes that then with a condition in which, a very few things exbegan forcibly to operate in favor of the British, cepted, he felt satisfied and grateful. He had eleven years after, when the British tonnage was dwelt the longest on the fitness of a Navigation 240,000, and foreign but 45,000, were as irresisti-Act to the present circumstances of this country, ble as to that effect as they are remote, and fortunately so, from this country. A union with Scotland had taken place, and increased her exports; the manufactures of the country had re- But even taking it for granted, which cannot be ceived great comparative improvements; the admitted, that these resolutions afford, on general American fisheries began to improve; Jamaica, principles, a well-founded hope of relief from comwhich is immensely important to her, and a King-mercial and navigation restraints, he had no hesidom in itself, became a considerable object; but, tation in saying that the present is the very worst above all, these independent States, who were time to try the solidity of the policy. It was bad, then very growing Colonies, became felt in the as it related to the chance of a war; and there scale of national interest, and poured their bulky was reason to fear that no nation would at this materials into her lap. Without a Colonial sys- moment hold out great commercial temptations, tem, she would not have felt the benefit of her except as a condition of joining in the war. It Navigation Act. was bad, as it related to a commercial contest with other commercial nations; for where was the nation on whom we could rely under such a derangement of our trade as this system designs?

With a Colonial system, she, and other countries possessed of Colonies, have inducements and employment for a disproportion of navigation that this country is without, and needs not in her present progressive state of all things. And yet the gentleman's system looks to a Navigation Act, at a time when all is convulsion without, and where none, or very few of the causes that have led to such a scheme in other countries, are visible in our internal affairs. For, if we look into our local situation, we find a most extensive and fertile country, sparingly inhabited, and abounding in natural wealth. If we look at the English, we find contracted territory, redundancy of population, few or no raw materials, and scarcity of the necessaries of life, with large capitals, and the greatest exertion of ingenuity in manufactures.

as most of the arguments of those from whom he differed in opinion were drawn from the propriety of adopting something extremely like one.

An alteration so great, in navigation, habits, employment of capital, and all sorts of commercial views, had been more reasonable and more practicable, if a clear necessity for such sacrifices could be shown; or if, in yielding to the force of a justly excited resentment against the British for insults offered to our flag, the gentleman had given us reason to believe that the sources of negotiation had been first exhausted; but there still remains a hope that negotiation and reflection might remedy evils which neither had been able to prevent.

At all events, the meditated change involved interests to our industry not to be hazarded on mere commercial theory, unsupported by the very Importation of manufactures has been our prac- last necessity. It was to be expected that any tice, and seems, under the present degree, protec- man who should make an attempt so serious as tion given to those which are adapted to our im-the present, would have come forward with a rmediate attempts to be our interest. We import statement of advantages to be derived from the no raw materials scarcely, nor grain, nor necessa-change, so great and so certain as to warrant some ries. They, on the contrary, import almost every thing, and manufacture every thing. In short, our situation is completely a contrast to theirs, and it is a contrast infinitely to our credit and comfort. It had led his mind to a full conviction 3d CoN.-13

hazard in the experiment. That, where he meant to change the stream of commerce and industry from its present bed, and exclude supplies of manufactures from one country, he would have pointed out another channel for its current, and have told

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Commerce of the United States.

us precisely the very nation from whose ports the new supplies of manufactures were to be substituted, and on what terms.

The gentleman who meditated this thorough change, ought to have had at least the outline of fresh treaties in his hand, for the old were worth nothing; he might thus have shown us the only ground of expectation that a nation ought to calculate on a view of the interests of such nation with which an accommodation of our own might be moulded into treaty. But no such thing was either conceived or done; indeed, it was impracticable at the present time, and his measures ought to have waited for a proper time, had they been in other respects adapted to our policy and in

terests.

But even allowing times, and the settled state of things abroad, to have been at this moment such as to permit this measurement of the sober interests of all, it would not be useless to inquire shortly into the probable ground of treating, supposing a treaty for instance with France to be undertaken in the spirit of those resolutions. He would not indulge any of those romantic expectations which some seem to place in the affection of that, or any other nation on earth. He would look steadily at her interests, in order to form an opinion of what she would do, and he would measure her interests by her own scale-the opinions she had ever entertained since she became a great maritime Power. Ever since the days of Colbert, France has looked on her West Indies as the support of her maritime greatness. A jealousy, equal to that of any other country, had always appeared in her Colonial system; and a spirit of monopoly, which her interests as a maritime Power, to use the term, seemed to inspire.

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He would not, then, fancifully indulge himself or his constituents in hopes which a view of the interests of France showed him to be fallacious, and he would not in so serious a question suppose that they, more than we, would act steadily on any other principle than interest; it was the only immortal principle in the intercourse of nations; it may vary its shape and modification, but never its nature; and it is the most useful, as it contains a perpetual stimulus to honest emulation.

Had a detail been entered into by gentlemen on the other side, of those provisions which we should rightfully expect of any Power, in whose favor discrimination was intended, our judgments would have had some employment on fixed and certain objects; we might, from a correct view of the benefits and temptation presented, have estimated with some precision, though not with perfect accuracy, the value of that gain which such a commutation promised, but at present we were in the dark, and foresaw nothing with certainty; commerce was to be let loose to be blown to any quarter of the world, but its certain direction was not to be counted upon, and could not be foreseen.

It was impossible, he observed, to calculate the extent of the good and the evil; but we were certain that there was not a nation in the world ready and prepared at present either to receive our advances, or to supply us with manufactures, if these resolutions succeed. The only country to which we could look as a substitute to the British market, is at present in a state so convulsed, and in such a paroxysm of affairs, that from thence we had nothing to expect, nor did he think that a treaty, of which he had heard some intimation, with that country of justice and reciprocity would suit the United States. Mr. MURRAY much questioned The Republic, by their Navigation Act, seem whether any treaty with the Powers of Europe on determined to adhere to the Colonial system; or, perfect reciprocity, for instance with mutual duif they at all relax, it is but a temporary yielding ties of say five per cent. on imports, would suit to transient necessity, rather than a principle of our situation. Such a one would suit those nachange, introduced by either a revolution of Go- tions only in which manufactures had obtained vernment, or real and lasting alterations of their considerable perfection, but would be the ruin of interests. Their interests would be the same now our infant manufactures, which we must and as heretofore, and that they meant to have a pow-ought occasionally to protect, by duties varied acerful marine was evident from their Navigation cording to their progression, and the probability of the supply from them proving adequate to our demands.

Act.

He did not believe they would let us into their West India trade freely, except under circumstances like the present, which operated on all alike. They never did permit a free export from their Islands but to the Mother Country, and thence circuitously to others; by these means, they were secure both of the carriage and a cheap supply. Were a treaty now offered, giving a free trade to those Islands, we would think it hazardous to discriminate in their favor on that account. We should be suspicious of an offer that stood on a sacrifice of their own interests, and would not calculate on the permanency of provisions, which the necessities of war and disorder produced, but which never would long survive those necessities, which peace would remove. But there was no such offer; nor was now the time to digest such a business as a treaty, if this were an offer really made.

The effects of these resolutions on our internal affairs immediately, would prove that they were pernicious and a real tax without a well-founded reason. They would immediately be perceived in a diminution of our revenue, in their operation on the value and price of goods, and in the reduction of the value of our produce and raw materials. The last would be affected from the discouragement of foreign shipping. The first, from the inability to bring in foreign manufactures, from which a duty could be raised, because the line of trade and correspondence being altered, it was impossible to say when or where the importing merchant would be able to form new connexions abroad, which were not things of a day or a year, but required much time and mutual confidence to mature.

The value of goods would immediately rise, and

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the merchant, every where actuated by the same principle, interest, which ought to guide us here, would benefit by the monopoly of goods to the injury of the farmer.

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sion, as all the points of relative privileges and restrictions, and the items of trade, had been ably and often stated. He had concluded, that as our trade does not at present (putting the disturbances The moment these resolutions pass, said Mr. of war out of the question) suffer from many reMURRAY, there is not a shop or a store in Phila-strictions which, when unacquainted with the delphia in which every imported article will not subject, he thought did exist; as some of the exrise in price fifteen per cent., while our own pro-isting restrictions against us belonged to systems duce will probably fall. But a gentleman from over which we had no certain control, and which Virginia [Mr. NICHOLAS] wishes to see retrench- it did not suit us to imitate strictly; as the resoment; he confessed he saw no reason for violent lutions contemplated a change without affording self-denial. There was no society, he believed, in a substitute in any degree, much less to more adthe world that could so well afford to live well, vantage; and as negotiation was not yet at an and taste of every rational and refined enjoyment, end, from which he hoped for some redress; as as the citizens of this free and happy country. peace was his very first object, and, he believed, The universal prosperity which this very com-that of his constituents, and as those resolutions merce, which is designed to be destroyed, diffuses might go to disturb it, and did not appear to him throughout America, justifies enjoyment. Very supported by a certainty of advantage, though folnatural would it be for the farmer to inquire the lowed by great present and certain mischiefs, he causes of this sudden rise in the price against him. should vote against them. He would be told that the British had insulted our flag, and therefore our system of self-denial. Could it be answered that we had exhausted all the gentle means of negotiation? or could any man lay his finger on any country, in a map, and say we have a The House again resolved itself into a Commitcertainty that from this country we shall not only tee of the Whole House on the bill making apbave supplies of goods, but sure and high prices for propriations for the support of Government, for our country produce? This could not be said. the year one thousand seven hundred and ninetyWere there such a country now prepared and rea-four; and, after some time spent therein, the Comdy to substitute for our present connexions, he mittee rose and reported progress. said he would feel more justified in voting for this change, for he, like every other American, had severely felt the indignities offered to our flag and posts by the British.

Mr. M. having concluded his speech, the Committee rose and had leave to sit again.

WEDNESDAY, January 29.

COMMERCE OF THE UNITED STATES. The House then resolved itself into a Committee of the Whole House on the Report of the Secretary of State on the privileges and restrictions on the commerce of the United States:

that a question would soon be called for; it might, perhaps, be expected that he should review those objections, and assign the reasons which induced him to continue in the opinion he at first entertained. He wished it not to be understood that he meant to examine every particular argument which, in the course of so extensive a discussion, had been opposed to the measure. The Committee must have perceived that some of them had been of a nature not to merit an answer, and that others had sufficiently answered themselves. He should extend his observations to such topics only as might be thought to need explanation, and to have an influence on the question.

But, said Mr. MURRAY, it has been more than intimated, even in this House, that our country had pursued a pusillanimous conduct and stood in Mr. MADISON said, that most of the objeca humiliating point of view. He denied it. No tions against the proposed resolutions had been country on earth stood, he believed, in a more ex-made by those who meant to combat them, and alted station among the nations, nor better supported the character of a spirited people. Could any nation be charged with pusillanimity that had declared such a neutrality as this country did last Spring? At a time when all the great and formidable Powers in Europe, combining every engine of immense force and despotism against the French, were hovering round her borders, and seemed determined to crush her; at a time when she had not one ally on earth, and no nation received her Ministers, the United States dared to maintain a treaty, that looked the proudest nations in the face! They dared to be just, and there was a magnanimity in venturing so far in such times, and on so hazardous stipulations, that Previous, however, to this general survey of the not only rescued them from every charge of hu- ground which had been traveled over, he should miliation, but, in his opinion, added to the glory so far presume on the patience of the Committee of the country. No, this country was not hum-as to recur to the original opposition made by the bled. Like a young man of virtuous mind, and member from South Carolina, [Mr. SMITH,] and of fortitude, just setting out into life and business, to take notice of some particulars, in what had she comports herself among the nations with dig-been urged by him, which were left unanswered nified reserve, with amiable and innocent man- at the time. ners; she complies with her engagements though The gentleman had thought proper to introduce imminent danger overhang the performance, and his discourse with a very unmerited attack on the bravely trusts the consequences to Providence. late Secretary of State, and to mingle with it a Mr. M. concluded with observing, that the state variety of criticisms on the facts and opinions of the debate presented no temptation to discus-stated in his report on the subject under consider

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