Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1832-03-08


no greater exchangeable value, in consequence of
the levy, because the agents Of the Government
would bring the other forty into the domestic
kei and of course the supply in this also,woud
he undm'nishe,l No proposition in political Geo.
noniy ~ more universally admitted bv all the oppos-
ing schools ofthat science, than that tive ,nire of an
article cannot be enhanced i'm consequence of a tax
or duty, unless the supply be first diminished, or the
"ch'u increased SO far, therefore, rs the South
ern producers concerned, il would be better for
'nem tiiat public enemy should capture and de-
sroy on tie high seas, the forty bales OF cotton or
ot merchandise which the Government levied MS a
tax for in that cusc, the supply would be diminish
ell to the full extent of the destruction, and this
would enable the producers obtain some indcm-
nity for the burden imposed upon them-or i'm 9th
or words, for the increased cost of their production
but the Use OF money as the universal measure of
vauc, the admission OF specie free of duty and the
intervention of exporting and importing merchants
IN etiecting the exchanges of foreign commerce,
though they alter the form and add the complexi-
~ oil the operation, do not, in the slightest degree,
change the permanent effect of AN import duty upon
me productive agency engaged in supplying the
chahges oil foreign commerce. But, these causes
nave the effect of involving the paincst truths i'm
doubt and uncertainty, they require explana-
ton. All commerce., foreign and domestic, ulti
mateiy resolves itself into exchange or barter
money and merchants 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, upon
the operations of foreign commerce, under system
OF protecting duties 1t is said that these duties e-
wed upon imports, are not equivalent to the same
amount of duties levied upon the exports given i'm
exchange for them, because specie, which paws no
duty, may be imported instead of merchandise sub
Iect To high protecting duties Those who use this
argument, should he taught to suspect that it con-
tnils some lurking fallacy, 10y the undeniabe fact
that foreign merchandise, burdened with protecting
duties, still continues to be imported i'm preference
to specie, which pays no duty at all. Ii would be
N ttIe nfnng al.
there can he no substantial relief i'm the option of
importing specie because il would be to mport pre-
cseIy what we do want as an article of con-
sumption. But as specie is also, by universal con-
sem, the measure and the representative of value
ana, as superficial reasoners with difficulty un-
derstand how 1t is possible that community can he
impoverished while this article is abundant the me-
ialchoIy experience of Spain to the contrary nor
w'tiistanding, the Committee will cndeavor to ex-
pam more precisely the effect produced nv import
ing specie, upon the domestic value of specie itself
and upon the relative values of different descriptions
OF domestic productons-all considered as the
effect of protecting duties.
Let It he supposed, thcn that, under system of
Periecty Tree trade, the Northern manufacturers
supplied one-half of the demand of the country for
the manufactures, and the Southern planters the
other half In this state of the trade let it he further
supposed that an average duty of forty per cent
should be imposed upon imported manufactures If
specie were not the universal medium of EXCHANGE
and admitted free of duty-as, for example if each
nhiioh nad mere paper currency, having no circu-
la'ioh beyond ITS limits, and specie We're unknown
tile very first effect of The supposed duty on inn
ported manufactures would be to dcprcss the ex-
changeaDe value of the staples of expectation very
nearly 10 The extent of that duty But as specie is
inc universal representative of value, and is admit
ted without duty, the first effect of the duty ON inn
ported manufactures would be to suspend their i'm
porlatIon At first, the same quantity of specie
could he obtained abroad for the staples of ey
Portation ms was obtained before, and it would be
iounu more advantageous to import the specie and
exchange Tor domestic manufactures under so high
duty AT first, also, the price of domestic manufac-
lures would be very little enhanced; but in n very
short time, probably in less than six months after the
imposition of the duty, the money price of manu-
features would be forty per cent higher i'm the IT,
states than they would i'll Great Britain and the inn
portatlon OF manufactures would he resumed This
rise III the relative price of manufactures would re-
sun rom the combined operation of three causes
winch II is very important distinguish and under
stand. The first and least of these would be- the en-
ianccd value OF specie in Great Britain owing to
the Increased demand for it, and the diminished
quantity This would, of course, produce fall i'm
British prices, which would be almost purely non,i-
nal and nearly proporoncd to the rise there in the
value OF specie The second of these causes would
be- the increased demand for domestic nanuiac-
lures, owing 10 the temporary exclusion of foreign
The third and principal of these
causes would be- the depreciation in the value of spe-
cie IN the L. =, owing to the excessive importation of
IT. and the increased quantity retained in circuation
Tins cause would probably produce more than one
nan OF Tic rise which would take place i'm the mo-
ney-price OF manufactures in the United States and
To inns extent the money-prcc of every thing else
would rise, with the exception of the staples of ex-
Por'atIon exchanged for imported manufacturers
WINE the money price of every thing else would be
raised, therefore, upwards of twenty per cent, and
that OF manufactures forty, the money price of cot
ton, tobacco, and rice, instead of rising would ne
cessarily fall These being articles raised for ex-
portatlon, their money-price at home would be 90
ycrncd by their money-prcc in foreign market
ut we have seen that the price of specie would be
appreciated i'll Great Britain and consequently n
smaller quantity of it could be obtained for a given
quantity OF the staples ofexporation than before the
duty was laid on manufactures. We have thus the
measure of The depreciation which is produced in
the price OF Southern exports by the protecting du
tues upon imported manufactures. The appreciation
OF the value of specie abroad and its depreciation ut
home, united, will exactly give that measure All
the unprotected articles the planters have occasion
TO buy cost them upwards of twenty per cent more
and all the protected articles, similar imports cost
them forty per cent. more, while the quantity of spe
cic IS actually diminished which they obtain for their
staples, and with which they make their purchases
The cXchangeablc value of cotton is therefore di-
minshcd about two cents in the pound; and this
loss the planter would sustain ms II producer merely
even III he consumed no protected manufacturers or
similar foreign manufactures whatever
TO whatever extent he consumes these manufac-
lures, he pays an additional duty of something less
than twenty per cent this being about the degree i'm
which we have assumed that the exchangeable va
ue OF protected and similar imported manufactures
Is increased by the forty per cent duty If the