Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-11-06
COMMUNICATIONS.
FOX TIE f~N lNT'6..1''
fnv,i,shed originally IN che kan0,eha Bsnner)
TO MR. JAMES CASKS,


nT.h -, Inn, WINS expected from it, in ehiight
i,s the pnbic mind in relation 10 the causes anu cue
,hs, prc:raon of our foreign commerce, WHICH "" o
lonp existed Bu, although the Convention was u"ao..
~ t spd The feeling manifested by all the members
r ,h. assembly does itself afford the most cheering
aurury that our people are alive 10 tne impofaGe VI
The subject on which it was called 10 deli0e'a'e uh" VIA
,cv are prepared adopt any system o! measures whch
,rovs 10 be essential to commercial prosperity
iis much that people are alive TO the Importance
Of the foreign export and import trade II only remains
that lie thoroughly convinced OF tne true causes o. It's
.n,,uIc from, u.s. and then the application OF an e!iec
,usl remedy will be comparatively easy.
The unanimous declaration OF the ate Convention III 10
one of its resolutions s that the natural advantages OF
Virginia for foreign trade are not exceeded by lhose W
any State in the Union. The truth OF this declaration
must be OF vious any capacity. The bay OF 1o'k anu
the por. Of Norfolk and Portsmouth present Two OF Tue
finest harbols in the world, certainly not inferior "
on the American coast We havea SOL naturally 10 W.
file and productions as valuable and as varea Us a
of ,he States and our manufacturing facliites can
mol be surpassed. Why is 1t, then thal Inc eoun' r.
cal emporium of Virginia IS not within inc etInT,y VI
Virginia. Why is it that the meiShants OF NooA .i
stead Of importing directly for all Virginia. do not even
n,nort the goods consumed in their own borough, ou'
make their purchases at second or third hand IN ne"
York: The actual condition Of our trade, especially IN
the seaport towns, seems TO involve very
dox 1t is demonstrate that the Norfolk merchant, VINO
makes his purchases in New York. must pay as many
and as large charges of shipment at that port from
rone as if the goods had been first discharged rom 'e
European vessel The wharves Of the borough In au
don to this he pays upon his goods all the Proh'S Of
the New York importer, and the charges OF reshpinehl
neurance, freight, SC, &c, TO Norfolk now lna' Ill u
Of these latter charges, every thins neyoho the
cost of importation from the ioIegn port 10 r cW
York or Norfolk is clear and total loss TO the Norloh
merchant who lays in his stock OF goods al new 10TH,
is matter Of demonstration. But it's equally cIear lna
the Norfolk merchant consus his interest," ana ouys MS
goods upon the best possible TERMS and IN the most au
hon hot uec
wear after year, 10 pocket this loss to make TINS unde
nable sacrifice to pay down this large premium 10 the
Northern merchant for performing an operation LOT hi
which would seem that he could as easily perform 10.
himself without charge Now, ho% are these apparent
contradictions and real difficulties TO be reconclied ana
explained By what principle shall we resolve Inc seem
ing paradox, How shall reconcile these conflicting
statements, both Of which are undenaoe truths: Inc
solution can only be found in the working power
of capital 1t is principally owing 10 that law OF ca
pal which the cost Of all lis operations to be
diminished just in proportion as you increase the
amount Of capital employed in the operation. NUS
the individual who has but thousand dollars Of CAPT
tai must contrve TO it 80 that it may yield nm 81
or so per cent, while the millionaire, eager 10 employ
his capital, is glad TO use it in an operation which VIII
produce three four per cent Il is obvious mat inc
former Of these cannot compete in any business win
the latter This the well known and established Las"
of capital. But in estimating the wonder lul influence
of this law, will be proper 10 cco!lect that as Inc ca
pal Of an individual or community is increased, The
Ceomerical ratio. And how greatly the influence OF
this latter element must diminish the cost OF every
operation in which capital employed, every one nusI
be aw are.
Ills then The greater with which the immense
combined capital and credit ofthe city of New oIS can
operate, ta! enables her 10 import for the merchant OF
the Virginia seaport; and after deriving handsome
profit upon the operation 10 deliver the goods IN MOI!
folk at less cos. than must have been incurred IN The d.
importation by the limited capital of that borough
This is the simple and obvious and only possible mode
Of explaining the paradox already stated
To bring the Virginia seaport then into successful
compe with New York in the foreign commerce oil
the country, you must increase ITS capital TO some rea.
sonable proportion 10 that Of New York BY what means
is this desirable result 10 be accomplished: Can lie IN
tellgent merchants of Virginia. assembled in convention,
Otherwise suggest to the people OF Virginia any sys
tem the operation of which may place our own seaport
in like position with New York in this Particular: 10
do this must ascertain what 1t is which New YORK
has, and which we have not that has caused The accu
mutation Of capital al that point. And if, in this exami.
nation we can find great and ndispuable
s;an,y operating, and Of itself adequate 10 produce the
effect, it will be unnecessary and unPhosophcal
embaass The subject With the discussion OF other pos
sbe but causes which, if they nave operated al
ALL only have been auxillares TO the principal
and acknowledged cause.
1t NAV be safely affirmed as n Fundamental and uni.
yersay operative law Of rade that demand and supply
invariably proportioned and measured, the one ny
the other and that you increase the demand the ssp
ply is likewise increased This law is specially aud en-
phatcay applicable TO capital. Wherever demand
exists for the active and profitable investment and exeT-
else Of capital, there will capital accumulate until that
demand suppled and if the demand instead Of being
limited TO certain point, Perpetuay enarses, so Will
the supply be continued by perpetual accession. Now
let apply this well known and familiar principle to
The condition and history Of the foreign commerce oil
New York and Virginia; and lie, see if this principle
will not adequately account for The vast increase OF The
one and the constant dimnution Of the other.
At the period Of the Revolution, the amount of the
foreign commerce Of the two States was nearly equal;
but there existed even at that time remarkable differ
ence in the mode in which il was conducted. 1he Stale
of New York has but single seaport and but one large
river which conducts all her trade TO that port. at the
period Of the evolution, then all the foreign trade at
The State was conducted by and through the city Of ~
York At the time the trade Of Virginia was con.
Quoted principally by the Scotch merchants, who had
settled in oil the little towns near the head OF tide on all
the larger rivers and creeks Of the State. Thus even
at that day, though the trade Of the two States was near
IL equal, yet the city Of New York was much larger,
and its business far beyond that Of any single in 'Ir
gnia But it not much larger, nor had its capt
tai so greatly increased 10 dcc,roy the competition Of
the yisgniu towns in the foreign trade Nor did this
result take place for long time alter.
AS The population Of New York gradually increased,
extending itself over the surface well as becoming
more Dense The increasing trade thereby produced
ed constantly increasing demand for capital with which
IN carry on that trade at her only port the city OF New
York. That demand was regularly and az constantly
supplied, until New York became n large commercial
city. The same extension and increase oil population in
Virginia, likewise occusoncd an increased demand for
capital with which conduct the increasing trade ut The
various points from which that trade carried
And this demand likewise regularly and constantly
supplied that all OF our towns increased in size, all
became larger to,cs but Of them rose to The o'g"
~ and size Of city, because there was no concenlra
ton of trade or capital al either of them.
The difference in the geographical position OF The
two States which produced this striking diversity in the
course of their trade and its results operated also upon
their legislative policy in relation TO The facilities afforded
to commerce BY Of roads and canals Every such
Improvement in ~ York designed, and necessarily
tended increase and facilitate the trade to the only
commercial emporium Of that State. Hence, every fea
sble scheme of united all voices in its ia
vor and the work was soon executed, and added its
pac,es TO the great object of swelling the commercial
prosperity of the State In Virginia on the contrary,