Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-11-01

causes and the of that prostration foreign
commerce. which has so long existed. But although
the Convention unable to do much for the pub
lie eye and the public mind, yet the spirit and the
feeling manifested by all the members of that assem-
bly, does itself afford the most cheering augury that
our people alive To the Importance OF the sub
| jet winch il called TO deliberate, and that
they prepared To adopt any system of measures
which shall prove 10 be essential 10 commercial
prosperity.
1t is much that our people are alive TO the imror
lance of the foreign export and import trade. Ii only
remains that we be thoroughly convinced ofthe true
causes Of lis departure from us, and then the ap-
plcation of cile ctual remedy will be comparatively
easy.
The unanimous declaration of the late Conven-
ton in one OF lis resolutions is that the natural ad
vantages OF Virginia for oreign trade not exceed
ed by those of any State in the Union. The truth
of this declaration be obvious TO any capacity.
The bay of ork and the port OF Norfolk and Ports
mouth present two OF the finest harbors III the world,
certainly not inferior to any on the American coast.
We have a soil naturally as fertile and productions
valuable and as varied any of the States, and
manufacturing facilities cannot be surpassed. Why
is it, then, that the commercial emporium of Nirgi
MIA is not within the territory of Virginia. Why is
| il that the merchants of Norfolk, instead OF mpor-
ting directly for all Virginia, do not even import
the goods consumed in their own borough but make
then purchases at second third hand in New
York? The actual condition Of our trade especial
ly in the sea port towns, seems TO involve very
strange paradox. 1t is dcmonstrabe that the Nor
folk merchant, who makes his pu chases in New
! \ ork, must pay rs many and as large charges OF
shipment at that port from Europe, ms # the goods
had been frs, discharged from the European vessel
al the wharves of the Borough. In addition TO this
lac pays upon his goods all the profits OF the New
ork importer, and the charges OF rc-shpmcnt IN
surance, freight, &c. &c, 10 Norfolk Now that all
OF these latter charges, every thing beyond the
mere cost of importation hon the foreign port 10
New York Norfolk, is clear aud total loss 10 the
Norfolk merchant who lays in his stock OF goods al
New ork, is matter OF demonstration. Bu, II is @
qually clear that The Norfolk merchant consuts his
interest and buys his goods upon the best possible
terms, and in the most advantageous manner, when
he thus consents, deliberately year after year TO
pocket this loss make this undenable sacrifice, TO
pay down this large premium 10 the Northern mer-
chants, for performing an operation Tor HIM, which 1t
would seem that lie could as easily perform for him
self without charge. Now, how are these apparent
contradictions and real difficulties to be reconoled
aud explained BY what principle shall we resolve
the seeming paradox How shall we reconcile these
conflicting statements, both OF which are undcnlable
truths! The solution can only be found in the ma
gc-working power of capital. 1t is principally ow-
ing TO that law of capital, which causes the cost OF all
its operations TO be diminished inst IN proportion as
you increase the amount of capital employed in the
operation. Thus the individual who has but one
thousand dollars of capital must conlve 10 use II so
that it may yield him thirty fifty per cent, while
the millionaire, eager employ his capital is glad
to use it in operation which will produce three or
four per it is obvious that the former OF these
cannot compete any business with the latter. This
is the well known and established law Of capital
But in estimating the wonderful influence OF this
law it will be proper recolect that the capital
of an individual or community IS increased the
credit of that individual or community increases in
geometrical ratio. And how greatly the influence OF
this latter element must diminish the cost OF every
operation in which capital is employed, every one
must be aware.
1t is then the greater cheapness with which the I'M
mense combined capital and credit Of the city OF New
ork operate, that enables her TO import for the
merchants of the Virginia port and after de-
irving handsome profit upon the operatlon to de-
liver the goods in Norfolk at less cost than must
have been incurred in the direct 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 port then into success
ful competition with New FORK in the fore gn com
merce of the country, you must increase ITS capital
TO some reasonable proportion to that OF New ork.
By what means is this desirable result to be accom-
pIshed? Can the intelligent merchants OF Virginia
asse mbled in conventions or otherwise, suggest to
the people OF Virginia any system the operation OF
which may place own seal port IN like position
with New York in this particular! 10 do this we
must ascertain what it is which New Y DIRK has, and
which we have not, that has caused the accumula-
ton of capital that point. And if in this cI-
animation can find one great aud indispulable
cause constantly operating, and OF Itself adequate to
produce the known effect il will be cessary and
unphilosophical to embarass the subject with the
discussion Of other possible but remote causes
which, if they have operated AT all Can only have
been as auxiliaries to the principal and acknowledge
ed cause.
1t may be safely affirmed, fundamental and
universally operative law OF trade, that demand
and supply invariably are proportioned and measured
the one by the other and that as you increase the
demand, the supply is likewise increased. This law
is specially and cmphacally applicable to capital.
Whereyera demand exists for the active and profita
Bile investment and exercise Of capital there will CAPT
tai accumulate until that demand is snpplled and II
the demand instead of being limited to certain point,
perpetuay enarges, will the supply be continued by
perpetual accession. Now let apply this well known
and familiar principle 10 tho foreign commerce of
New Y DIRK and Virginia and let us if this prin-
ciplc will not adequately account for the in
crease of the one and the constant dmnution olthe
other.
At the period of the Revolution, the amount ofthe
foreign commerce of the two States was nearly G.
DUAL but there existed even at that time remarka-
Bile difference in the mode in which 1t was conduc-
ted The Stale Of New York has but single sea-
port and but one large river, which conducts al her
trade to hat port. At the period oil the heVoluton'
then all the foreign trade Of the State was conuuc-
ted by and through the city OF New YORK.
At the same time, the trade Oh Virginia was
conducted principally by the Scotch merchants,
who had settled in all the little towns near the head
of tide, on all the large rivers and creeks OF the
State. Thus at that day, though the trade OF
the two States nearly equal, yet the city OF New
York much larger and its business far beyond
that Of any single town in Virginia But twas not so
much larger nor had its capital greatly increased