The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-31

pursuit, will be so much clear gain TO the
planter and to the country.
Iii well established principle in politi-
cal economy, that an excess OF supply beyond
the efficient demand, diminishes the price Of
an article more than in proportion 10 the ex-
cess, and that a deficiency Of supply increas-
es the price in corresponding degree For
example, il is believed that if the present cot
ton crop of the United States should be only
100000 bales, il would produce larger
aggregate sum to the planters, than if il should
prove to be 100000 bales, the price being
more enhanced than the quantity would be
diminished. 1t was upon this principle that
the Dutch East India Company, actually burnt
one half their spices, that they might obtain
more for the remaining half than they could
have obtained for the whole. Let us pursue
still wiser policy. Instead Of burning our
surplus, let us direct the capital and industry
that produce it, to other profitable pursuits,
which will open new sources of wealth, and
at the same time increase the value of those
already in existence In connection with
this view Of the subject, the policy of raising
every supply which the soil will produce,
cannot be too strongly recommended By
whatever specious reasons a contrary policy
may be countenanced, experience proves them
to be fallacious. If every planter would
raise his own supplies Of the various produce
tons Of the soil and Of the animals which
feed upon those productions, it would tend
greatly to limit the excessive production of
our great staples, and increase at the same
time the independence and the income Of the
agricultural class.
The committee will now proceed to exa-
mine little in detail, the relative advantages
of the Southern cities for the business of TO-
reign importation, compared with those of the
Northern cities. In the first place, house
rent is much higher in the latter than in the
former, very important element in the cal
culation. In the second place, freight is ha-
bitually higher from Europe to the Northern
than to the Southern cities, for the same rea-
son that ships coming to the South for cotton,
would have to come in ballast if they were
not freighted with merchandise. All other
elements that constitute the cost of importa-
ton, are believed to be as cheap in the South
ern as the Northern cities. 1t is thus demon
strable that foreign merchandise can be actu-
ally imported and sold in the former at cheap
er rates than in the latter places. When to
this we add the expenses of transhipment at
New York or Philadelphia, the loss Of inte-
rest, the freight and insurance to the South
ern cities, the expenses of landing and storing
there, it will be apparent that the merchants
of the South and Southwest, will find it
greatly to their advantage, to make their pur-
chases Of foreign merchandise in our own
cities, in preference to New York or Phia-
delphia. The same course of reasoning will
show that our cotton can be exported directly
from our own seaports, with similar advan-
tages over the more circuitous route of the
Northern cities.
1t seems, therefore, perfectly clear to the
committee, that our capitalists who shall enter
into the business of importing foreign mer-
chandise, cannot fail to realize ample profits,
and yet supply the merchants of the interior
on terms more advantageous than they c; n
obtain from the Northern importers. They
have every natural advantage in the COMPETE
ton, and are invited by every motive, public
and private, to embark in the business and
reap the rich harvest that lies before them. 1t
cannot be doubted that the merchants of the
interior will give them preference, since, to
the motives Of interest, those Of patriotism will
be superadded.
Among the measures which will most ef-
fectually promote the great object which has
brought this Convention together, none are
more prominent in the estimation Of the COM
mittee, than the completion Of the great works
of nalimprovement by which the southern
Atlantic cities are to be connected with the
valley Of the Mississippi. In aid of the indi-
vidual capital and enterprise engaged in these
works, it is believed that the patronag, of the
States interested, might be wisely and bene-
ficially bestowed Their completion would
greatly promote the system Of direct importa-
tons through our own seaports and these
importations would equally promote the com
pletion of the works in question. They are
parts Of one great system, and will mutually
sustain each other. If Georgia and South
Carolina, with that harmony and concert of
action which the inseparabe identity Of their
interest SO strongly recommends, would bring
their individual energies and resources to the
completion of those lines of communication
connecting their Atlantic cities with the navl-
gable waters Of the West, the day would not
be distant when our most ardent hopes and
sangine anticipations would be realized.
The committee beg leave to suggest to the
Convention, another measure, which, in their
opinion, would be eminently conducive to the
great object we have in view. One Of the
obstacles in the way of establishing a system
of direct importations, is the want of the re-
quiste capital applicable to that object. The
country, it is believed, contains sufficiency
of capital, if motives be presented to give it
proper direction. TO effect this, the commit
tee can suggest no measure, which in their
opinion would be so effectual, as law limit
ing the responsibility Of copartners to the sums
which they shall put into the copartnership.
A large portion of the capital to which we
must look for carrying on the business of
direct importations, is in the hands of planters,