The southern press. [volume] (Washington [D.C.]) 1850-1852, 1851-04-15

lie says that the "touchstone" of this theory ia
the question: " DO the exports carry the title to
the importationsw answer that for all the
purposes OF the present discussion, they do a.
the latter are certainly bought with the former,
and constitute the value received for them.
The case is not changed by New England
merchant intervening to buy tho exports, in or
der to sell them abroad for the imports. What
he can pay for them plainly depends on what he
can sell tor again--that is upon the value OF the
imports he receives in turn. Take DIR. Derby's
"case in point A New England ship sails for
Charleston with cargo of granite ice, fish, and
manufactures. She exchanges these for lum-
Der, rice, and cotton. She then sails for Liver
pool, makes freight and profit, then to Cardffe,
where the proceeds are invested in slate, or iron,
and returns to Boston," (p. 373) Now" as the
South has nothing to do with these imports"
she has good deal to do with the duties paid
upon them. If the importer can add the whole
duty to the cost, then the price is raised, and so
must be the price of the domestic slate or iron;
both will fall on the consumer, and we have
just seen what would be the effect on the South.
But If the importer cannot so raise the price,
then the whole duty, or part of it, falls on him
his cargo of slate or iron is worth just so much
less to him, and MS his object was profit, he must
pay as much less for the Southern "umber,
rice, and cotton" which he bought to exchange
for the slate or iron. In this case, it is perfectly
true il,at the imports are reduced in price" CT
rather tier whole value to the importer is re-
duced b the Duties and thus the exports are
impaired in value !" and it was only in this sense
that the pamphlet ever asserted anything of the
kind. And such is the answer to Mr.. Derbys
objection, :" that upon this theory, properly cx
tended the true exports, which are indebted 70
the imports, are the productions of the Norti
shipped TO the South there converted into cot
ton, tobacco, and rice, and in that shape ex-
ported, they buy for the North a large proper
ton of the imports; and hence il appears that
if the duty is paid by any producer, it must be
by the produce Of the exports for the foreign
markets, and that is the Southern producer.
Even if the WHOLE duty could lie thrown upon
the consumer, by rise in the price of the i'm
ported goods, it could only be in consequence
Of a diminished supply obtained from abroad.
But if less was bought from the foreign, he
could buy less; his ability to pay for the cot
ton, &C., would be impaired, and its price would
be reduced at home and abroad by this restric-
ton in the market. Thus in whatever character
the South is viewed, whether as producer or
consumer, she bears burden more than pro-
portionate to her share of the exports.
this reasoning, by saying the South may ex-
change her exports abroad for specie, which is
free, instead of goods which are taxed. He
says, I" the party who exports may not only re-
ceve his payment abroad, in coin or drafts, but
if he takes goods, is not bound to bring them
home; the markets of the world are open to
him those markets, not ours, fix their value"
(p. 374.) Did it never occur to Mr. Derby that
these goods are Of no use to the receiver, until
they are brought home, or something "a their
place! And if " the markets of the world are
open to him." his own is not for whatever he
brings home must pay the custom-house before
it can be used. But we are told he may bring
back specie, which is free This operation cannot
be carried far no nation can retain more than her
just proportion Of the specie Of the world. The
attempt would soon raise money prices at home,
| and reduce them abroad, which would occasion
an increased importation Of goods; and as these
must be paid for in specie, cheap here, and dear
there, The balance would soon be restored.
This argument is familiar to every tyro in po-
itica economy, and it is useless to enter into il
at large here. i will rather remind Nj. Derby
Of few facts which are conclusive for the pre-.
sent question. As the pamphlet says g it would
be asking an impossibility, to demand nothing
but specie in payment, when the exports of cot
ton alone are more than the whole annual pre-
duce of gold and silver in the world, before the
discovery Of the California mines But it is
useless to argue what may be; the question
here is, not what the producer could do, but
what he actually did" we may fairly presume
that the exports wee sold, as well as the cir
cumstances permitted, and the exporter took
payment in such articles as, upon the whole,
Welded the best profit. Now the records show
that payment was hehy made in goods, upon
which more than billion of dollars have been
paid. The true que ,tion is, who paid these
81 ,05O,O00000 of taxes, on the $500, 100000
of imports, and not whether the payers could
have escaped, if they had been smart enough to
bring the $3,7OO,000,000 home in specie; more
than the whole amount in the world.
| 1t is truly surprising that gentleman of Mr..
Derby's intelligence should resort to this bro
ken down theory" of the old mercantile school,
and should imagine that the precious metals are
the ultimate objects of the trade of the world.
He refuses to see that they are only the instru-
ments by which balances are paid, and the
measures by which the exchanges are esti-
mated The trade of the world consists in a
great interchange of commodities between the
various producers, who are all, in their turn,
consumers, to the extent of their production !;
and the factors, and merchants, and shippers,
who 30 disturb Mr.. Derby's vision, intervene
only to bring the distant producers more con.
veniently together. They may abstract their
commissions, profits, and freights, from the
commodities exchanged, as compensation for
the labor Of exchanging them; but when the
operation is analysed, we are always brought
back, at last to the several producers, and it is
upon the relative cost of production that the
supply of their several productions depend,
which again determines the rate at which they
are interchanged -that is, their value. Now
three-fourtbs Of our foreign trade consists in an
exchange of Southern for foreign products and
when, by means of duty, one third, or any pro-
portion Of the value Of the latter goes into other
hands than those of the Southern producers, the
loss must inevitably, in some shape or other,
either directly or indirectly, fall on them. For
the whole controversy, as to whether the duties
are paid by the producer or consumer, springs
out Of confusion of ideas, which hides the fact
that the producers the consumers. Every
mans consumption depends simply upon his
ability--thnt is, upon his production. Now when
the productions of one class or section of
community, are different from those of the rest.
it must evidently pay any tax which may be inn
posed upon the goods FOR which these produc.