The Sun.
London, England, 1848-01-06 00:00:00

THE SUN, LONDON.

factured goods, it is also in a great measure regu-
lated by the zeal of the producer in attending to the
wishes and even to the caprices of the customer).
That there does exist a reciprocal action between
exports and imports will, however, be denied by no
one ; on the contrary, this action is of great import-
ance, and is the essential condition of the commercial
interconrse of nations, but it is not the standard by
which their trade is regulated. If ever so many
German ships brought coffee direct from Java, and if
they brought still more coffee direct from the Brazils,
these countries would not therefore consume one ell
more of German tissues. . .

The example of Bremen, which is particularly
dwelt upon in the conclusions come to by the Prus-
sian Department of Trade, of which we have above
given an abstract, affords no proof of the contrary.
If the proposition placed at the head of these deduc-
tions were literally applied, it would, with regard to
Bremen, run thus :—The Americans send their pro-
duce to Bremen ; if they find their manufactured
goods, which they have reason to hope they
may dispose of at home, they will purchase
these goods and not seek another market,
as, for instance, the English market; they would
thus promote the exportation of German produce,
and, consequently, benefit German industry. But, in
reality, the matter does not stand thus. It is not the
Americans, but the inhabitants of Bremen who carry
on this trade, as may be seen by the relative number
of the ships engaged in it. Out of 118 ships
which came last year from the United States to Bre-
men, only fourteen were American, and ninety-eight
belonged to Bremen. The proposition must, conse-
quently, he reverse ; the citizens of Bremen send goods
to America, and as they find there goods which are
consumed in Germany, they purchase them there, in-
stead of going to the English markets in quest of them,
which would be of no advantage as to the exportation
of German produce. Were we however, to frame
the proposition thus :—The citizens of Bremen
dispatch ships to the United States to fetch
colonial produce, and are, therefore, obliged,
in order to freight their outward-bound ships, to
send German produce thither—we would still not hit
the right point. The fact, as is well known, is this :
—Bremen sends her ships to the United States to
transport thither the immense number of German
emigrants who have fdr some time past been accus-
tomed to leave the country by that port, and to these
transports, which can in themselves not be consi-
dered as a direct means of promoting German in-
dustry, is linked all the subsequent commercial
transactions. Of the 225 ships that went from
Bremen to America last year, 223 were emigrant
ships, carrying over 31,000 passengers; their cargoes
out were completed with goods, most probably of
German produce, and their return freights con-
sisted of colonial produce. The extraordinary ac-
tivity with which Bremen has carried on this novel
kind of business is owing to several circumstances
which do not require to be further developed here, and
which are so little connected with the measures which
we are here discussing, that it can hardly be supposed
that an increase of this business by means of differ-
ential duties is contemplated. Independent of these
particular circumstances, there is no reason for
quoting Bremen, where the exporter and shipowner is
perhaps often the same person, as a proof in favour of
the proposition that the amount of direct imports
gives the measure of the amount of the exports of
German produce. It is indeed proved by experience
that the relative proportions of exports and imports
are not more favourable in Bremen than in Ham-
burgh, where the business of exporter arid shipowner
is not so often in the same hands. On the contrary,
the proportions are rather in favour of Hamburgh,
for while, according to Table XIX., relative to the
trans-Atlantic trade during the year 1845, the relative
proportion of exports to imports was as 11 to 25, in
Hamburgh it was as 26 to 37 million marks banco ; and
if we deduct on both sides the value of the goods
appertaining to persons emigrating, the proportions
will be still less favourable to Bremen. Conse-
quently experience also teaches that the union of the
business of shipowner is not of such very great
advantage with regard to the sale of German pro-
duce. Should even the shipowner, relying on ad-
vantageous return-frieght, and not liking to let his
ship make an entirely profitless voyage out, load it
with German produce, without much prospect of a
profitable sale, such a circumstance would at all
events not exercise any considerable influence on the
course of trade. As a general rule, it may be said
that if the export business is profitable, it would be
so independently of its being carried on by home
shipping (as is daily experienced in Hamburgh) ;
and if it be not profitable it will soon be given up by
our shipowners, who certainly cannot be expected,
out of zeal for the promotion of German industry,
to go on with a business that proves itself profitless.
The above quoted numbers, showing the propor-
tions of the imports from transatlantic countries to
the exports to those countries, also refute the asser-
tion contained in the statement of the Department of
Trade, that the trade of Hamburgh is not of much
benefit to German industry, because even the direct
imports to this city from transatlantric countries are
made by means of foreign vessels ; for those state-
ments give the value of the exports of German pre-
duce from this port to transatlantic countries, only ex-
clusive of those to Europe ; but even independent of
this, the correctness of this assumption may be
doubted : first, it is incorrect that the greater part of
the transatlantic imports into Hamburgh are made in
foreign vessels, for (vide Table I.) of the 380
loaded vessels coming to Hamburgh from ports
out of Europe, 200, according to the general
practice, are German, 50 Danish (consequently
partly German), and only 130 are foreign. It
can with as little truth be maintained that the Eng-
lish, Danish, and other ships, do not export ,German
produce, as it is evident that they would not enter
the port of Hamburgh if they were not able to find
return freights there, but were obliged to leave it in
ballast. Should it be objected to this, that even if
they do take in return freights here, these do not
consist in German manufactured produce, this objec-
tion will be obviated by a glance at Table XXII-,
which shows the number of ships that have left for
transatlantic ports. A comparison drawn from this
table and from Table I. will also show that the Eng-
lish flag in particular has, during the last ten years,
been much more active in the export trade of Ham-
burgh ,to transatlantic countries than in the import
trade, and that, on the contrary, the German flag
imports more than it exports. In addition to this,
these tables also show that a large number
of ships (sometimes 8, sometimes 30, and even
76), and more particularly of German ships, yearly go
out empty from this port to transatlantic ports,* a
fact which it is difficult to reconcile with the reason-
ing of the Department of Trade. Finally, were it
even true, as the oft-mentianed deductions assert, that
the products of German manufacturing industry are
being more and more supplanted in transatlantic
markets by the manufactures of other countries, this
circum Lance would in itself be the most striking re•
futation of that argument, as it has been shown (vide
Table I. and VIII.) that contemporaneously with
this supposed diminution of our exports, our imports
from those countries, as well as the number of our
ships engaged in trade with them, have greatly in-
creased. This clearly proves how little the sale of
German goods in foreign ports is connected with the
direct importations to Germany from those ports, or
the amount of German shipping engaged in trade
with them ; at all events, it proves how doubtful a
means of promoting the former would be the in-
troduction of differential duties in favour of the two
latter.

To the uncertainty and the improbability of a fa-
vourable result comes thus a still more important
consideration—namely, the probability of an unfa-
vourable result.

If the differential system be consistantly carried
out, its injurious effects will in the first instance be
manifested with regard to the supplies of raw mate-
rial used in manufactures. It has already been shown
that the action of differential duties in favour of di-
rect imports of colonial goods would, in fact, be re-
duced to a mere nothing, if the chief articles, such as
cotton, indigo, and sugar, which are at present prin •
cipally imported indirectly, were to be withdrawn
from their influence, and that it is nevertheless abso-
lutely necessary that German manufacturers should
be allowed to continue to avail themselves of Euro-
pean markets for supplying themselves with these
articles.

The promotion of our cotton manufactures is what
public opinion in Germany most strenuously demands.
But a system which would prevent the German
manufacturer from supplying himself with cotton
from those markets which afford him the greatest
choice, or, in other words, would prevent him from
drawing his supplies from England and France if he
could get them cheaper there than in America, seems
but little reconcileable with this object. Since it has
become usual for English commercial houses to have
agents in the interior of Germany, the indirect sup-
plies of cotton which are brought hither are generally
obtained from Liverpool, by order and for account of
our own manufactures ; but this is only done when
cotton can really be obtained cheaper in that market
than that which is directly imported. The English
houses are obliged to make offers at fixed prices, and the
German manufacturers are at liberty to accept or to
reject them. But extensive purchases for German ac-
count are also often made in Havre, because the sellers in
this market—which principally supplies Alsace and
Switzerland, where the finest cotton goods are manu-
factured, and where, consequently, the most superior
qualities only of the raw material are required—are
obliged to dispose of the inferior qualities of American
cotton which remain on their hands at proportionately

* These ships frequently go empty to Bremen to take
in emigrants there. The number of ships laden with
goods only, trading to and from this country and the
transatlantic countries, can never be equal, because, in-
dependent of every other consideration, manufactured
goods are of so much smaller bulk and weight than colo-
nial goods.

low prices, by which the German manufacturer is
greatly benefited. It can hardly need further proof
how injurious it would be to German industry, under
such conjunctures as those of last year, for instance,
were this market closed against us, and we should be
obliged to have recourse instead to the markets of the
distant producing country, whence offers at fixed
prices cannot be made in Germany,' and where very
frequently the orders of the German manufacturer,
when they arrive cannot be executed, because they
have been fixed at too low a limit. On
the other hand, the protective duty on cot-
ton yarn, which has lately been raised one Prus-
sian dollar in the Zollverein States, would soon be
neutralised if the German cotton-spinners were ex-
eluded from the markets of Liverpool and Havre, and
should he forced to pay the higher prices which would
at once be established in the German seaports, in con-
' sequence of the exclusion of the catnpetition of those
markets ; while foreign spinners, continuing to pur-
chase in those markets, would perhaps be able to offer
their yarns at a reduction of price exactly equivalent
to the amount of the increased duty imposed by the
Zollverein., It has already been shown above that the
new system will not immediately lead to an equalisa- I
tion of price in different markets, and in particular
that we cannot immediately expect great supplies
from India, with which country we have hitherto had
very little connexion ; but should this even take place
after the lapse of some years, German manufacturers,
which under existing circumstances are gradually
opening new markets for themselves, will by that time
be entirely driven out of those markets, and our
cotton manufacturers will have received a check from
which they will not easily recover.
For cloth manufacturers, indigo is of the greatest
importance. The new system would also consider-
ably increase the price of this raw material. Of the
30,000 chests of indigo which form the amount of
the yearly produce of India, 20,000 chests go to
England, to be there disposed of at the great quar-
terly sales, where the owner is sure to obtain the
price which the state of the European markets war-
rants. Germany must draw her supplies from Eng-
land, and should she be debarred from this, her cloth
manufactures, which are at present in so flourishing
a condition, that German cloth has almost superseded
the English manufacture in the markets of America,
would immediately be crippled and checked. The
same may be said of other dye stuffs, such as cochi-
neal, &c.
Finally, sugar, though imported directly in great
quantities, as has been shown above, is also partly ob-
tainedilithrough indirect channels, when those prove
most profitable. It would be most imprudent to
check these indirect imports at the very moment when
the free admission of sugar into England will pro-
bably occasion a considerable increase in the supplies
brought to that country, and a consequent glut in her
markets, which would enable our manufacturers to
purchase there at a cheap rate.
In considering the rise in the price of raw mate-
rials which will be caused by the imposition of diffe-
rential duties on indirect importation, we must not
forget to take into account that which will be added
by the additional duty on imports in foreign ships,
and the consequent rise in the rate of freight. This
has been more fully dwelt upon above, and we will
therefore here only make the further remark, that
should even raw materials be exempted from differen-
tial duties, the latter would still exercise an indirect
restraining influence on their importation, by occa-
sioning inconvenience in assorting the goods destined
for Germany in the European transit markets. For
instance, in dispatching a lot of goods not subject to
the new duty, to Germany, exporters would be pre-
vented from completing their cargo with such cods
as would be subject to this duty.
As it is of the greatest importance to the manufac-
turer in making his purchases to have access to the
greatest and best supplied markets, we must further
insist upon the circumstance that the projected system
of differential duties would not only prevent the
German manufacturer from availing himself of the
French and German markets, but would even injure
the existing great German markets on the North Sea,
as has been shown above when treating of the injuri-
ous influence which the new system threatens to
exercise on the import and on the transit trade.
Large markets and transit trade are equally im-
portant for the sale of the industrial produce of Ger-
many. In order to make this evident, it will be suf-
ficient to recal what has been said above concerni: g
the transit trade of Hamburgh and Altona with Nor.
way. The best means to form to oneself a perfectly
correct idea of this trade would be to examine the
`account-books of the Norwegians, who every spring,
when the navigation recommences, crowd to Ham-
burgh to make purchases there, for the reports of the
commerc'al travellers, who every year leave Germany
in great numbers, and spread over Denmark and the
Baltic countries, offering there forsale thegoods of their
respective houses. In Hamburgh may be seen a
varied mixture of goods of all kinds, for which sales
have been made in this manner. But this very
variety is the most essential condition of the prospo•
rity of the place, for were the Norwegians no sure
to find in this market all that they require, colonial
produce as well as tnanufactured gnu ts, at a cheap
rate and in the greatest variety, they would no doubt
resort in preference to the English market, which is,
besides, nearer to them. There they would indeed
find none but English manufactures, but these would
in most cases be substituted for German without any
inconvenience. For the Cake of German manufactures
alone, they would certainly not take the trouble of
coming so far ; but under the existing system of free
trade in Hamburgh, they find here the goods of all
countries, and when making their purchases of co-
lonial produce, imported indirectly as well as directly,
they provide themselves at the same time with Ger-
man manufactures.

We have here adduced but one example out of
many. The manufactured produce of Germany can-
not suffice alone to encourage the trade with the north
and with the Baltic countries, nor is it sufficient for
the export trade with the non-European countries.
Here, uain, liberty of action with regard to the
completing of cargoes becomes a matter of great im-
portance, for just as a single commercial house, which
through its connexions with distant countries effects
extensive sales of German manufactures, would be
crippled in its undertakings if it were forbidden to
complete its cargoes with English goods; so also
would the export trade in German goods of a whole
commercial city be greatly checked if merchants
were prevented by artificial regulations from supply-
ing its market with all kinds of goods which would
be likely to meet the wants of purchasers, and be in
accordance with the actual necessities of trade. _ _

That German ships are not exclusively used for
the exportation of German manufactures has been
shown above ; it is just as certain that it is not only
the merchants in German seaports who carry on the
export trade, but that foreign merchants also very
frequently order shipments of German goods to be
made for their account. Both those circumstances
afford new grounds for not preventing foreign mer-
chants on their side from sending hither colonial
goods from European markets, and for not hindering
foreign ships from seeking freights in German ports,
where their competition serves to reduce the price of
freights outwards, and consequently to facilitate the
exportation of German produce. Nothing can be
more desirable with regard to the promotion of the
German export trade than an accumulation of the
cheapest means of transport in German ports.
Finally, it must not be overlooked (and indeed we
have already called attention to this point) that
Germany is not to dispose of the surplus of her pro-
duce to trans-Atlantic countries only, but also to
European countries; and not only to those of the
north, the importance of which with regard
to our trade has already b'en mentioned, but
likewise to those of the west; for all German
seaports, Bremen perhaps excepted, their trade
with Europe is of superlative importance. It will
hartilyb necessary to refer to Table; XX. and XXI.
to prove, that the great majority of ships that have
left Germany have been destined for European poi ts;
and though the ships engaged in the European trade
are frequently of less tonnage than others, yet it
cannot be doubted, that even with regard to tonnage,
the greatest amount of exports takes place to Euro-
pean ports. Among the western countries, England
is decidedly the most important customer with regard
to German produce. German manufactures are in-
deed almost excluded by high duties, but even these
willamake way for themselves, in spite of all custom-
house harriers, when the circumstances connected
with a particular branch of industry in the one coun-
try and the wants of the other country render it pro-
fitable. Such is, for instance, the case with the
hosiery of Saxony, which is introduced into England
and is able to compete with English manufactures of
the same kind, though the cotton yarn used in its
manufacture is partly of English origin, and is con-
sequently subjected to double duties and burdened
with double transport expenses. This may, how-
ever, be an exceptional case ; according to the gene-
ral rule, it is agricultural produce that is exported
to western countries, and to such a vast extent,
that thereby the value of the general exportations
from Germany, throughout the year is rendered al-
most equal to that of the importations. The corn
exports may be calculated to amount to 100,000
lasts,* which, estimated at 100 Prussian dollars,
would give the sum of 30,000,000 marks hanco. Of
clover seed there was last yoar shipped to England
from Hainburgh alone, about 24,000,000 pounds, at
a value of 6,000,000 marks hanco. If we add to this
30,000,000 for wool (about 24,500,000 by way of
Hainburgh alone), and for zinc, from 3,000,000 to
4,000,000 (about 2,500,000 by way of Ilamburgh),
we have still only named the principal articles of ex-
portation. But if foreign European nations purchase
so largely from us, while their manufactures are, by

* The Stettin memorial against differential duties
(Berlin, 1847) calculates that the exports from the
Prussian Baltic ports alone amount in good years to
150,000 lasts,