The Pennsylvania packet, or, The general advertiser — Lancaster, Pa.;Philadelphia, Pa., 1780-03-11 00:00:00, page 1

To the INHABITANTS of AMERICA.
My Countrymen,
HAVING already considered the nature of our
currency, some effeds of depreciation, and the pro
priety of taxing money, before we attempt to Shew how
the value of our paper is to be fixed, how (applies are to
be railed, and how ceconomy is to be introduced in the
various departments, confidently with the principles of li
berty and justice, we must confider the laws against mo
nopolizers, together with those which are called regulati
ons. And here let me repeat, that bad motives may pro
dace actions beneficial to society, and let me add, that in
famous characters are oftentimes necessary. The office
of hangman must be executed as well as that of Judge,
and the villain who informs is so far an ufeful villain We
ought therefore to be cautious how weliften to the dictates
of hatred or contempt, and hill more cautious how we
obey them.
We have the evidence of history and experience, to
shew that laws against monopolizers have been ineffeau
al History goes farther, and shews that such laws have
been injurious- And when we look for the reason why they
have been injurious, reason will perhaps inform us that
their object was to prohibit a&s of public utility. These
propositions may furprize some minds, and that furprize
will be increased if these propositions are demonstrated.
Thus in the infancy of fclence, when Toricelli affected the
ex ftence of a vacuum, he was heard with the utmost afto
niffiment and indignation. With equal indignation and
astonishment we now hear that Toricelli's assertion was con
fideyed as a crime. Since thousands of our fellow men
have been mistaken in former times, let us believe it pos
sible that we of the prefect day, may in our turns be mis
taken. And in this belief let us examine a matter of no
small important, with the calmness and attention it un
doubtedly merits.
The principles of a monopolizer I abandon to his foes.
His principles are not oar present object. Neither is it
our business to confider that species of monopoly, by which
a few individuals under some particular name or defcripti*
on, enjoy any branch of commerce to the exeltffion of their
fellow fubjeas. The monopolizer we now (peak of, is
he who being possessed of wealth, invests it in the pur tf
chafe of articles which will probably become more scarce
and dear, than at the time of purshafing them. I fay pos
sessed of wealth, for, as to those who speculate on the mo
ney of other people, I believe that very little is to be ap
prehended from them, because men soon learn not to give
credit, when that credit is to be used against them. In
deed it is somewhat furprizing, that any man would part
with his goods for any thing but cash. Both private in
terest and public good are opposed to the idea. Private
interest, because the feller on credit, rifques and fuffers the
depreciation. Public good, because credit takes away the
use of money, and therefore enables the famequantity to
go farther as a circulating medium, and when that is re
dundant, increases the redundancy. Besides which, the
purchaser on credit, always found it his interest to depre
ciate the money.
The articles engrossed, may be of two kinds, either fo
reign or domestic. And foreign articles may be either
luxuries or things of common use. As an example of the
former, let us take the article of ram, and let us suppose
that by means of a monopoly, it were raised to double the
real price for which it was bought. I fay the real price,
because the depreciation hath been such, that many ar
ticles are nominally higher than they were, though they
have fallen considerably in the real price, by which I mean
the price either in wheat or gold. Supposing then, that
the price of rum were doubled, the consequence would be,
that as the consumption of the article would be lessened,
fewer native commodifies would be exported to pay for
rum, and therefore a balance be created on foreign com
merce in favour of the country. If, for inflance, it were
necessary to fend away sixty bushels of wheat, to purchase
a hogshead of rum, then every hundred hogsheads of rum
saved, would be a clear saving of fix thousand bufliels of
wheat. The country therefore, could pay fix thousand
bufliels of wheat more in taxes, or support as many more
men, as those fix thousand bushels could maintain. Ifhall
not contend that distilled spirits are unwholefame, and the
like. Arguments against luxury, however just, are beside
our system. But this at least muff be allowed, that a man
would not be less healthy, er less happy, at theend of the
month because he had not drank a gallon of rum in it.
By this operation then, of the engrosser, and all others like
this the community is greatly enriched without any injury
to individuals.
Let us next confider the effed of monopolizing foreign
articles of common use. Let us take cloth as the article
monopolized and suppose the price of that also to bedou
bled. In this case as in the other, less of the article would
be confuted. The society at large therefore, would be
better fapplied from the flock on hand, for when the price
rose, every man who was not under a necessity of buying,
would we-r his old coat rather than get anew one :He
therefore who really wanted a coat would be able to pro
cure it, for though there might be enough for a part of
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the people, yet there might not be enough for all of them;
and if there was enough for all, the engrosser would not
find his account in it, because, as only a part of the peo
ple would buy, part of the article would remain unfold
to his great detriment. Add to this, that the increased
price would encourage the importation of more, and there
by hasten and increase his loss. Neither can it be jufliy
objected that the poor would fuffer. For altho' it is tru^
that they would pay a great advance for their coats, yet
they would reimburse themselves by an equal advance on
the price of their labour, particularly in this country
where the demand for labour is so great. But even if they
should not entirely reimburse themselves, yet surely it is
better for them to pay a greater price for their cloaths than
to go entirely naked, which must inevitably happen to
many if the price of the cloth were not increased.
Hence therefore it is evident, that the engrossing foreign
luxuries and even foreign necessaries, would be ufeful to
the community, when separately considered. But theen
groffing foreign articles in general is attended with other
advantages, The (peculator, by purchasing immediately
of the importer, for cash, enables him immediately to fend
his (hip upon another voyage, and stimulates his inauftry
by the quick sale of his goods. Bfides which, it keeps
prices more steady, because when the thing is cheap the
(peculator buys, and when it grows dear he fells; where
fore importations become equally ufeful to the whole com
munity, whereas oth rwife they would benefit that part
only which lies near to the sea ports. And however plea
sing it might be to them that they should have this supe
riority ov% their fellow citizens, they would soon find theif
error. For if those at a distance could not obtain the
things they wanted in exchange of those they had to fell,
they certainly would bring nothing to market, and the
citizen would feel that the want of beef can be but indif
ferently compensated by the temporary cheapness of fait,
neither would he be able to quiet the clamors of his chil
dren fer bread by the saving of two pence on the price of
a dram. Add to this, that if the merchant could not
obtain country produce, he would be obliged to disconti
nue his importations.
But perhaps it may be doubted, whether (peculation
tends to fix prices, and indeed the current of opinion,
notwithstanding the clear reason of the thing, seems to
set very jfrongly the other way This is owing to the de
preciation and some other particular circhrhftances which
have attended the present war. Neither is it all furpriz
ing, that under such circumstances effeds should be at
tributed to improper causes. For the true causes were as
remote and intricate, as the effects were apparent and op
pressive. But if we turn our eyes to times and countries,
in which these circumstances have not existed; we Shall
fee the truth of the proportion above laid down is the
cleared manner imaginable. We Shall find that it our
own country and within our own memory, if we except
those articles which from their nature and that of the trade
to obtain them were not liable to much alteration, such as
hardware and the like, if I fay we except these articles,
the prices of those which were in any degree objects of
(peculation, were much more fixed and determinate than
any other. Indeed this must be so, for speculators go
vern their purehafes and fairs by the average price of their
files and purchases, or which comes to the fame thing, by
the average price of the commodity, all rifques, costs and
charges considered. Thus, for infinite, if the average
price of rum were 45-90 of a dollar per gallon, the (pe
culator would buy at 44, and fell at 46. Thus in Hol
land, which is as it were a nation of (peculators, prices are
more fixed and determinate than in any other country.
Any commodity or cargo which is carried thither, may
be immediately fold on good terms ; and any commodity
or cargo which is wanted from thence, may be immediate
ly bought on good terms. The concurrence of (pecula
tors, desirous of buying, brings tip the cargo to be fold
within a small per centage of the average price ; and a
like concurrence of speculators, desirous of felling, brings
down the cargo to be bought in the fame degree. From
these circumstances it happens that so many cargoes are
carried there, and so many others brought away. And
also that the fubfiflence of the people, not the tenth part
whereof is raised in the country, is fixed in its price to
the tenth part of a farthing. Lastly, we shall find that
Bills of Exchange, which were not Speculated on in Ame
rica, were more fluauating here than any where else, but
in Holland where bills are mast (peculated on, there ex
change has but a small variation. It is the merchant's
business to know the effefts ofhis fluctuation, but rely on
it, that the husbandman will feel them, and to his furrow.
Engrossing articles of home produce has the fame effect
on the farmer which that of foreign articles has on the
merchant, for a ready market not only prompts the
farmer to make the articles engrossed, but the ready mo
ney enables him to make them. This kind of monopoly
tends also to fix the price of home produce, in like manner
with that of foreign articles. But it is of more importance,
because, as home produce is the fund on which the laborer
subsists, fixing the price of it, fixes the price of labor, and
fixing the price of labor, fixes the price of every thing
which labor can produce.
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These then are the confluences which attend {pecula
tion on native and on foreign articles, when separately
considered. A further advantage follows from it, in a
more general point of view ; which is, that it facilitates
the interchange of commodities between the merchant and
the husbandman From the engrosser of home produce,
the merchant is sure of getting a cargo to export, with
out the cost or trouble of collecting it before hand, nei
ther of which might be quite convenient to him; and
from the engrosser of foreign produce, the husbandman or
tountry (lore keeper is (ure to find the commodities he
wants, without waiting at a great expence the arrival of
any particular vessel. Add to this, that without such a
class of men in a community, the consumption even of
ufeful things would sometimes from the plenty, run to li
centious arid pernicious excess ? while at others, industry
would languid from the fear ity or want of them. Thus,
the commodities of a country, like the rains which fall
on its furface, when colk&d in reservoirs, and dealt out
by degrees, produce ah increase of riches to the whole
community. But without that precaution, they fre
quently deluge and wafie the foil they should have re
frefhed and fertilized, then leave it exposed to the blow
ing heats of summer, until it is scorched into a barren de
fart. We shall, perhaps, be told, that the engreff :'s
motive, is private interest : Undoubtedly it is, and so is
that of the merchant, the farmer, or the mechanic, But
while from their labors, society derives a benefit, why not
permit them to labor ?/
Admitting, however, that it were necessary to puhifh
(peculators, and prevent (peculation; framing laws against
them would be but a poor expedient to accomplish it-
Many reasons might be adduced to shew this, blit it is fuf~
ficient to observe, that though often attempted, it never
was effected by the laws of any government which ever
yet exited. Such Laws have invariably produced the ef
feds they were intended to obviate. Ou the contrary, if
we repeal theie laws, and let monopolizers alone, they
will soon pur.ifh and prevent each otl er. For when all fire
at liberty to ad as they please, many would (peculate in
the fame articles, and as secrecy is essential to their ope
rations, not one of them could know the quantity engros
sed. But the price rising with the demand, would inrrea^
the quantity brought to market and lessen the consumption,
so that at length they would all find it necessary to fell,
and the instant they began, they would also find it neces
sary tounderfell each other, in which case theft who bought
in last would be so uhderfoid by those who bought in frft,
that they would have no littie cause to repent of their bar^
gains.
Hitherto I have considered monopolizing as a viry prac
ticable thing, and I shall fill do so w! iie we purfueour
enquiry to the moftodious ofthe whole tribe of en,r f
f&rs; I mean the man who engrosses the bread ofthe State.
In order to form a proper judgment in this infiance we
must remember, that while ther^ is no probability
of a scarcity, the engrosser will not purchase, cr if he
does he will mofl probably lose, whence by the bye, we
deduce this corollary, that he must be a uan of great
knowledge and forefight as well as of great wealth and
credit. But ta proceed, we will (uppofea Hate in which at
feme particular feafun, they should raifeno more bread than
just what would be necessary for the whole people. Now
what would be the conduct of Government if they knew
this circumstance? Would they not prohibit wane, se
cure all they could lay their hands on and appoint trusty
persons to take care of it? Would t ey not deliver it
outin small quantities, and in a word imitate the mat
ter of a ship, who during a long voyage puts both his
passengers and bis crew upon fhort,al owance ? This
is certainly what many Governments would attempt,
and in a State not much larger than a fllip, they might
possibly succeed, tho' not in an extensive and populous
irate, at least not without the aid of miracles. For a mo
ment let us pause, and picture to our fancies the feelings
of virtuous men, competing such a Government. We shall
behold the venerable fathers of the people, their eyes fix.
ed on the rdeagre form of Famine, who in all his horror#
rapidly advances. We shall behold them torn with anxi
ety, for their tyelefs and improvident children. So
licitous, but unable to avoid the impending evil ; their
bosoms swell with concern, and every countenance is
marked with the deep lines of care and dejection. Al
ready they anticipated the agonies of the poor What
pleasure then it must give them, to be told that their
wife laws and their vigorous administration have ren
dered property secure. That there are men who pos
sess confidearable wealth, and are ever intent on the means
of increasing it. That these men are fenfitle of the ap
proaching dearth—That they have already purchafeci the
harvest of the year, as if bv confect, though unknown to
each other —-That they wifi watch night and day tok<ep
off the vermin which might confurme, and the accidents
which might destroy it— That they will gradually increase
the price, and thereby lessen the consumption—add that
they will at the fame time be prevented by the fear of each
other from raifihg it extravagantly h ; gb So that upon
the whole, though the people will be somewhat impover
ished, they will not be fiarved.
march n, 1780.
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