The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-03-17

afe TAX on exports, tnat tax would not lail
exclusively on the South.
The value Of this export, again, in the TO-
reign market is enhanced by the cost Of trans
portation. Freight has become Incorporated
with It, and makes part of its price. AT present
pnces' freight to Europe is probably equal TO
one-eighth OF the cost of the article at New
orleans or Mobile. This freight is II Northern
earning; and TO this extent, therefore, the
navigating interest contributes to the value Of
the exported article. So that duties, if they
were tax on exports, would not fall exclu-
sively on the South, but would affect the grain
growing, the provision raising, the stock-rais-
ing, the hemp-rnising, the manufacturing, and
the navigating interests.
But the more we trace this branch of the
business OF the country, or any other through
all its processes and all its ramifications, the
more clearly we shall see, think, that the old
rule is the true rule, and that duties on i'm
ported goods are paid by different parts OF the
country exactly in proportion to their con-
sumption.
ii. Another opinion Of the honorable mem
Der is, that increased production brings about
an expansion Of the currency, and that every
such increase makes still further increase
necessary.
His idea is, that if some goods are manu-
featured at home, less will be imported if
less goods be imported, the amount Of exports
still keeping up the whole export being thus
not paid for by the import, specie must be
brought in to settle the balance; that this in
crease of specie gives new powers 10 the
banks to discount that the banks, thereupon,
make large issues, till the mass Of currency
becomes redundant and swollen that this
swollen currency augments the price of pro-
auctions, in our own manufactures, and makes
!. necessary to rise still higher the prices of
their products, and this creates demand for
the imposition OF new duties. This, as UNI
derstand it, is the honorable members idea
Now, it appears 10 me, that there are seve-
raj things worthy Of consideration in regard
to this supposed course and progress of
things.
In the first place, il is far from being always
true-I doubt much whether it be generally
true-that imporiatons fall off in conse-,
quence of carrying on some branches Of man
utacture at home. Our history certainly
shows no such result, looking through the
whole Of it, for the last twenty years. IL
there be large export, the return, if not made
in one article, will generally be made in some
ouea' ~ VII uouuiiy boPPCh III SoiHC
that, taking all branches Of the trade Of the
country with all other countries together, the
imports, in series of years, will be about
equal to the amount of exports, and the earn
ings Of freights. We have now list Of free
articles, of some Of which the imrortations
have been not only large but extravagant;
quite large enough at any rate to absorb ex-
ports; and quite too large, in my opinion, for
the good of the country.
The gentleman very properly admits that
specie cannot for a length of time, set to-
wards our country, from all others, to settle
balances of trade, and to make up the def
cheney Of Imports in relation to exports. Spe-.
Gle does, indeed, come TO pay up an occasion
al balance in the trade between a particular
country and the rest Of the world, and it soon
goes away again TO supply deficiency IN the
place il came from, or some other place.
There are vibrations in trade, and gold and
silver correct those vibrations. But there are
other causes which sometimes operate with
more violence. Disorders in the currency.
and expected short crop, political crisis, tho
fear of war, panic of any kind ). any Of these
things is able to disturb the natural course of
commercial dealings, and to arrest gud and
silver, while they are peaccably performing
the common functions of trade. Hence, it
we see very large import OF specie IN any
one year, il does not necessarily follow that
our imports have, to that extent, fallen short
of our exports. This import of specie may
be owing to one or more of the extraneous
causes above mentioned and in not abiding
to these causes, cannot but think the gentle
man has overlooked matter very important
to be observed. In our trade with some par
ticular countries, too, the return Is in specie
in very great proportion And as this trade
is very irregular, the quantities of specie re-
ceved from it in different years are very I'M
equal. Thus, in 1888, the whole import of
specie into the country was seren millions;
the next year, 1894, it was serenteen millions.
In 1886, it was thirteen millions in 1887, ID
fell to ten millions and in L 3S rose up again
to seventeen millions. Such fluctuations lind
no corresponding alterations certainly IN the
general balance between exports and imports.
The general truth is undeniable, that the ten
dency of gold and silver, in the ordinary ope-
rations of commerce, is to flow to that ccun-
try which has become a creditor country by
the excess Of its exports over its imports /; but
then their general tendency is so often dl-
verted or arrested by the interference of other
causes that the amount of importation or ex-
portation Of specie for given year is not
criterion by which the balance OF trade, or
the amount of exports compared with imports
for that year, can be decided.
great portion of the specie imported into
the United States comes from South America
and Cuba, by way Of New Orleans and other
ports, and is the return for provisions, and
more largely for manufactured articles, ship
ped to those countries. This fact is i'm
portant, and deserves consideration in acting
upon all subjects Of this kind. 1t is undoub'-