Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1832-02-14

to pay the wages Oi His ssioo'S'"' At,
ded hat there is no agricultural 'aoo' !" ~:
whole Union more efficient than tnat wh'c"
engaged in the production OF upland co''o''' a"o
that naturally, no staple of the earth has 80 ma
nv advantages. the consequence irresista6'y to'-
lows, that the unwise, unjust. and DISCRIMINATING
taxes Of the Federal Government have not oniy
cuunteracted these advantages. but reduced tue
wages Of the labor engaged in this production 10
a lower rate than the wages ct the starving oPe'
ratives OF Europe
IL the duties upon imports were levied IN Hind,
and the planters made their own exchanges win
the foreign manufacturers, without the interven-
ton either of money or commercial agents, the
most unrcfecting would perceive that the I'M
port duties were direct taxes upon the Produc-
tons of the planters. If, for example, forty bales
of their cotton were taken out OF every hundred,
when it passed the custom house. going abroad,
it would be impossible for them to obtain any lar.
ger quantity of goods for the remaining sixty,
in consequence of this levy. because the agents
of the government would carry the other forty
into the foreign market and, OF course, the sup
ply would be undninshed In like manner, II
forty bales OF the merchandise obtained tor the
cotton exported, were taken out of every hund-
red, as It passed the custom-house coming INTO
the Uaited States, the remaining sixty would
|
ouence of the levy, because the agents of the gov
ernment would bring the other forty into the do
nestle market, and Of course the suppl!f in tbs
case, also. would be undimlnished. No PROPOSE
ton in political economy is more universally at
mited by all the opposing schools OF that science,
than that the price of an article cannot be enhan-
! ced In consequence of duty, unless the supply
| be first diminished, nr the demand increased. SO
far, therefore, as the Southern producers are con-
cerned il would be better for them that a public
enemy should capture and destroy on the high
seas. the forty bales of cotton or OF merchandise.
which the government levied as a tax; tor IN tina.
case. the supply would be diminished to the full
extent Of the destruction, and this would enable
the producers to obtain some indemnity for the
burthen imposed upon them, or, in other words,
for the increased cost of their production.
But the use of money, as the universal measure
of value, the admission of specie free OF duty, and
the Intervention of exporting and importing mer.
chants in effectiDg the exchanges OF foreign COM
merce, though they alter the form, and add to
the compIextv of The operation, do not in the
slightest degree, change the permanent effect of
an import duty upon the productive agency en-
gagged in supplying the exchanges OF foreign com
merce. But as these causes nave the effect OF in
volving the plaines truths in doubt and uncertain
ty. they require some explanation. All com
merce, foreign and domestic, ultimately resolves
itself into an exchange Of barter; money and mer-
chants are but the medium, and the agents by
which it is effected. Bearing this in mind. the
committee will proceed to consider what effect
Is produced by admitting specie free of duty. up
on the operations of foreign commerce, under
system of protecting duties Ii is said that these
duties levied upon imports are not equivalent to
the same amount of duties levied upon the exports
gwen in exchange for them, because specie which
paws no duty, may be imported instead of mer.
chandiZe subject to high protecting dutIes.-
those who use this argument should be taught
to suspect that it contains some lurking failacy,
BY the undeniabe fact that foreign merchandise,
burthencd with protecting duties, still continues
To be imported in preference to specie which pays
no duty at all. 1t would be sufficient answer to
this argument to say, that there can be no sub
stanrial relief in the option of importing specie,
because it would be To import precisely what we
do not want, as all article of consumption. But
as specie is also, bv universal consent. the mea.
sure and the representative of value. and. as su.
perfical reasOners can with difficulty understand
how it is possible that community can be i'm
pOverIshed while thi, article is abundant, the me-
lancholy experience of Spain to the contrary, not
withstantling. the committee will endeavoT to ex-
plain more precisely the effect produced Nv IN
porting specie upon the domestic value OF specie
itself. and upon the relative values of different
descriptions Of domestic productions; all consid-
cred as effect of the protecting duties.
Let it be supposed. then, that under system
of perfectly free trade. the northern manufac-
turers. supplied one half of the demand Of the
country for the manufacturers. and the southern
planters the other half. In this state of
the trade, let it be further supposed that an ave-
rage duty of forty per cent. should be imposed
upon imported manufactures. II specie were
not the universal medium OF exchange. and adj
mitted free of duty; as, for example, if each
nation had mere paper currency, having no
circulation beyond its limits, and species were
unknown. the very first effect Of the supposed
duty, on imported manufactures, would be to de-
press the exchangeabe value Of the staples of
expectation very nearly TO the extent of duty.
But specie is the universal representative of
value and is admitted without duty, the first ef-
feet of the duty on imported manufactures,
would be to suspend their importation. At first.