The daily union. [volume] (Washington [D.C.]) 1845-1857, 1845-09-11

For the Union
THE TARIFF AND THE BALANCE OF
TRADE


4 A controversy has for some time been going on
between writer in the National Intelligencer over
the signature of "Madison," and the editors of the
i "Constitution," on the subject OF the tariff.
desire permission, through the columns OF the
I"Union," TO correct what l deem vulgar err
i ror.-perhaps should rather call il u popular
one--under which "Madison," in common with
| many distinguished writers and staiesmen labors.
| / have no doubt the editors of the Constitution
would cheerfully admit this into their
| paper, my opportunities OF acquiring information
being sufficiently well known to them; but would
rather, for various considerations, that should APP
| pear in the "Union."
Madison tells us, in one Of his articles, that he
was educated in counung-house, and spent many
1 years there. He therefore writes authoritativey
upon questions connected with commerce. Well,
in excuse for my venturing into the arena of dis
putation, l will merely state that was educated
upon the ocean--that have sailed in all manner of
vessels from soop to line-of-battc ship, having
for many years performed the "role' of captain and
superoaIgo These empoymenis undoubtedly
placed me in position TO acquire some knowledge
| of the commerce of the world But TO the point in
question The to be corrected is contained in
! bold assertions made in the following paragraph
which extract from the communication Of "Madi-
son." published in the Inteligencer Of August 3d.
1.-THE editors Of the Constitution may write on free trade
counting house that large imports and small exports
can enrich this any other country. Al countries that
| industry. | repeat-and common sense, expert
ence facts and figures will sustain methat Il is imposs
Bile that the United States can be permanently wealthy
powerful and great if imports generally exceed
exports"
do not know how difficult it may be to convince
"counting-house men" Of the error Of the position
here assumed, and for which it is admitted there is
grave authority. But | venture say, that 1 will
convince common sense men that greater fallacy
never uttered than that 't is impossible State
can be permanently wealthy, powerful, and great,
its imports generally exceed its exports" The
very reverse Of this position is in fact true. In the
usual Of foreign trade, the value of the i'm
ports must exceed the value of the exports, to
| make il profitable commerce. IT, for example,
the exports Of the United States amount to $780,
600, 600, custom-house valuation at home; and the
imports for the same year (yaluation likewise in
this country amount to 10000, 000-it shows
precisely this according TO my understanding Of the
case: that the merchants of the United States have
made twenty per cent upon their exports, or $780,
100000; thereby adding SO much capital TO the
country. When was the year of peace and pros
perty that this nominal balance of trade did not APP
pear against us' And how long would it take to
bankrupt nation, if this excess OF 500, 600, 900
were loss, year after year, instead of so much
added to our wealth. Certainly "comnon eaperi-
ence, facts, and figures" so boldly appealed to by
Madison" prove incontestably that the progress
of the United States in population and wealth too,
is unparalleled in the annals of the world and vet
with this terrible balance Of trade against us, by
which ought TO have been impoverished long
ago, we expand, and grow richer and richer.
In order to elucidate this subject clearly, let
me descend to particulars. l will take, for exam.
pie, voyage from the United States, the outline Of
which shall be founded in truth. A ship sails from
New York with a cargo of -four for South America
cost, S25 900 in New York, She sells that cargo
on the west coast of America for 100000 specie.
She proceeds with her specie to Canton where she
purchases cargo Of teas, and returns to New York,
where the teas valued at 1000, and at that
valuation appear in the commercial reports of the
Treasury Department. This voyage shows how at
least portion Of the balance of trade for the year
1872 was made up against our country If the
country suffered, it is very clear that Sl75000 ess
expenses) were added to the wealth Of the mer-
chants Interested This is one truthful and practi-
cal result. will give another.
A valuable armed ship is sent to South America
for SALE Her freight of military stores amounts to
$4,000 The ship, as sold at auction, had been pur-
chased for SOS 900 The value Of the cargo amounts
to SIC, 900 in NV York. This ship is sold in Rio
Janeiro for l52, 600 mireas The nett return to
the owners in New York was $4,000, exclusive
of the duties paid to the government of the United
States--5 cents per h. on coffee at that time say
1500 600 lbs. was equal to SIS 000--making the
imports on that transaction SlS5, 900, against ex
port of $4,000; for every mercantile man knows
that the value of the outward bound ship does not
enter into the invoice or bill Of lading
But it may he alleged, that these were extraordi-
nary and isolated cases. Perhaps they WERE What,
then, is the common operation of an ordinary voyage
Of the least complex character-a load of lumber to
the West Indies, cargo of any sort to any part
of the globe! The cargo Of lumber is invoiced at
our cusom-house at $4,000 the return cargo, bought
entirely with the proceeds of the outward cargo is
valued, it's return at the customhouse of the Uni
ted States, at 81, 500 Here is loss, according to
Madison" Of $4,000; and, upon such transactions,
the country cannot be enriched. The whole COM
merce of the world is made up Of such transactions,
and they are the exceptions only which prove ru-
nous Let our ships uniformly bring home short
returns, viz on the export of $4,000, bring home
5000, sometimes will, unfortunately, happen,
from depressed foreign markets; and widespread
ruin among the shipping interests is the certain
sequence. He must be blind, indeed, who cannot see
that result. Will Madison deny il Then, what
becomes of his assertion, "hat practical counting
house cannot be convinced that large imports
and small exports enrich this or any other coun-
iryin In a fourishing and profitable commerce, the
imports must necessarily exceed the exports; and
they will exceed them precisely in the ratio Of the
profits. II different system Of valuation were
adopted, the differences Of value would not appear
SO considerable. For example,: If the amount of the
sales of the outward cargoes were taken the data
of calculations it would be found that the balance Of
trade, as il is called would be greatly diminished, if
not annihilaed. The foreign purchases would then
correspond with the sales in foreign ports and there
would be apparent "balancc Of trade' for politi
cal economists TO humbug their readers with
balance of trade may, indeed, be created against
a nation but entirely out of the legitimate course OF
trade 1t is when money is borrowed abroad, for
| improvement rasis, embesslemen at home, and
| enormous imporations made, based upon such
contracts that balance of trade is created against
people, We have, unfortunately, had some expe-
ricnce upon that subject; but such disturbances are
out of the usual course of trade and more resemble
the alterations of comet from its path, than the
regular movements of the planet.
| But my object when | sat down was to correct,
| not so much "Madson's," as popular error; and
hope, sir ! have convinced you, il you ever were
sceptc, that the "baance Of trade'--the excess Of
imports over exports--s not annually so much lost
to the country, but, EXCEPTION errac causes, abso
lutte gain. TOM TOUGH.
For the Union.
| VIEWS ON THE COAST OF AFRICA.