Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1832-07-03
MR.. McDUFFIE'S SPEECH.
lcoNTINUED.]

ihese views OF tho subject, which | fear |
nave very indis inctly presented, bring me To
w"at regard rs a very important topic in this
discussion: allude to the embarrassment oDd
'"e OF every thing in money. and the habitual
cop'ounding Of the money price, with the er-
endnged6te ratue Of all commodities. IL the
So''oh planters, Tor example were to carry their
cotton TO Europe themselves, s, exchange il for
manufactures without the Intervention of COM
nerciai agents, and if the Government were to
'eVy the taxes i'm kind. by taking from the plan
!eTs' will suppose. forty cut OF every hundred
oaies OF the goods into which they had CONVEX
&c" the'r cotton, no one could fail TO perceive
'"at the system of protecting duties would lie as
UNJUST, unequal, aud oppressive, as the wicked
ness OF man could make il. Yet, nothing can
oe more certain than that the Intervention of
commercial agents, and Of money, produce no
enapge whatever either in the extent the dis
uihution Of the buItbens OF taxation. ] will
now attempt to make this demonstrabiy clear,b
"nalyzins the actual operations of the excban-
ges oi our foreign commerce, and by poin ing out
'he influence OF our commercial restrictions up
on the relative value of specie and Of other COM
modities.
Ii 10 a very commoB remark among the advo-
Gates oil the restrictive system, that duties upon
imports would be equivalent TO duties upon the
exports given in exchange for them, If il
were true TINT nothing could be obtained
abroad for our exports but imports which are
subject to the duties in question. Bu,, is said
TINS ~ not the case, innsmucb the cotton plan
ter may import specie in exchange for his cot
ton, which is subject TO no duty at all. Now,
the error of this view of The subject consists in
surprising that specie has fixed and invarable
value as compared with other commodities;
whereas, in truth, its relative value is quite as
subject to the influence Of commercial restric-
tons as That of any other article OF commerce.
Suppose, for the purpose of illustration, that.
mi r. l.
coffee were imported at precisely the same price,
and that, in this state Of things,a duty of SO per
cent. should be laid upon tea jim this case income
would have any difficulty D cOmprehendng the
change which would bo produced in the rela-
tive exchangeable value Of these two articles,
ny subjecting one Of them to duty of SO per
cent, and leaving the other entirely exempted
from duty. 1t is perfectly plain, that, whereas
one pound of coffee would purchase one pound
OF tea previous to the imposition Of The duty OH
tea, It would afterwards require one pound and
half of coffee accomplish the same object
This remark is as plainly applicable to any 9th
er articles, classes Of articles, where the one
is subjected TO duty from which tn. other is
exempted No one will lie found to dispute so
obvious principle, so long as it is confined To
the ordinary commodities Of trade; but the
ment you propose to apply il TO specie, the un-
derstanding seems to be COMPOUNDED and bewil-
dered owing, perhaps. to the habitunl associa
ton by which.a fixed and unnlterable value is
attached TO specie the universal equivalent
for all other commodities. Amidst all the fnc-
atoms in the relative prices and eXchangeabe
values of the various articles Of commerce, il
rarely occurs to any one that change in the re
ative value Of specie has had any agency in
producing those fluctuations: yet, most assured
~, sas.sia .-,sf fIScisefy Vir
Tfhfs respect any other article. If, for exam
pile one hundred dollars in specie would pur-
chase hundred yards Of cloth under sys
nj I'm hnf ,nIi tipa and in
this stete of things, duty of fifty per cent.
should be levied upon the importation of clio h,
no proposition can be less liable to dispute than
that one hundred and fifty, instead Of one hun
dred dollars would be required TO purchase one
hundred yards of clcth, after the duty on cloth
had been long enough operation produce
lis natural effect upon the exchangeabe VaIe
of the two articles. The certain effect, there
| fore, Of attempting 10 avoid the hurthen Of a re
striction upon our usual imports Ivy resorting to
| the importation of specie, would he to degrade
the value Of specie in the United States as COM
pared with all other articles, excepting The sta
piles of expectation. In other words, the ex-
changeahe value of specie n the United States
would be diminished precisely IN the degree that
the price of other articles would be enhanced by
the restriction. and by the consequent imporra-
ton of specie. To make this plain, / will now
suppose that there existed no daily or restriction
upon the importation of any foreign production :
H. IN this state OF our laws and trade, all the
duties should be imposed Upon foreign mann
features. which now constitute the protecting
system. and specie continued to he imported
free of duty, the frs, effect of the restriction
would he TO suspend the importation Of all arli-
Giles subject to the protecting duties. As the re.
lative prices Of these articles in England and
the United States would be adapted to IA state Of
| free trade, the exporter of cotton would fnd il
more TO his advantage, upon the first imposition
of the protecting duty, to import specie in ex
| change for his cottonj and purchase domestic
manufactures with II, than to Import foreign
manufactures under the high duties imposed up.
on them. This opeI alton would 60 90 until the
! relative value of manufactures in Eogland and
the United States; AS compared with specie
should be SO far Changed that it would be more
advantageous for the exporters Of cotton to inn
| port manufactures, even under the high duties
] than TO import specie. This change in the re-
latve value Of manufactures in the Two coun-
the quantity of specie 10 England and the ac.
emulation Of it in the United States. None,
would rise IN value i'm England. or, which is
the same thing; the MONEY price Of things would
| fall; in small degree, however, as the quaint
| ty of specie exported to the United States would
bear n very small proportion to the imniense
mass Of productions in Englandj and her other
markets, in which fioney Is rcqnifed 10 circulate
! AT the same time, the value of specie would fall
i in the United States, or, which is the same thing
! the money price OF all commodities, except the
! staples Of expectation; would rise 10 our market
III very considerable degree too; berause the
| increased Quantity of money required TO crcu.
| late. owing 10 the artificial state Of domestic
prices created by the protecting duties.
! IL is ifhtn8teriaf To my purpose 10 determin,