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

of the proceeds Of the cotton in Liverpool.
Therefore, out of this fund, all are paid In the
end; for, II the New York cotton merchant
sells his Liverpool drafts, so az to pay money to
the manufacturer and importer, yet the purch-
asers must themselves be those who want money
abroad--that is, importers. Hence the value Of
the cotton drafts depends upon the demand OF
the importers, which is measured by the guam
tty of the imp0rtations. But that depends on
their means of purchasing, which again depends
on the proceeds of their previous importations.
And as the duty has to he paid out Of these pro-
ceeds. (4nless il is Mrown By rise of price on
The consumer) the value of the cotton drafts is
pro tanto diminished ; and we have seen that
upon that value depends the price received by
the Southern planter or producer But If the
price il raised by the duty, SO as to avoid this
consequence, then the cotton drafts bring, and
the planter receives, as much money as before.
But the same sum of money is worth less to
him; for he, or the retail merchant who sup
,lies him, or the New York wholesale merchant
who supplies the retailer, can buy less Of i'm
ported goods with 1t than betOre---.s much less
as the duty raises the price nor can he buy as
much of the domestic goods; for if these do
nestle goods were Of the same kind with the
foreign, of course their price will be raised -
the same level. If of different kind, then the
manufacturer, who was only making fair aver
age profit before, now finds that selling his
goods at the same price, while other goods have
risen, he is no longer as well paid for his labor
as his neighbors, and his profit is below an
average. He must, therefore, cell his goods
proportionaly higher, which he can easily ac-
complish by lessening the supply, and diverting
part Of his capital either to producing the pro-
tected articles, or importing, which er-hypothesi
still pays the same profits. It may be said, this
would increase the supply, and thereby lessen
the price of the protected and imported articles.
But in that event, the price Of the imports
would no longers pay the duties and cost; the
duty would not be all thrown on the consume
and we should have the case before supposed;
the value of the cotton duties would be proper
tionally diminished, and, of course, the price Of
cotton. Therefore, it appears that the producer
of goods for the foreign market mr. pay the
duties, or suffer loss equal to them, either as
the exporter of his own produce, or as the con-
snmcr of what is bought with its proceeds,
either in the home, or foreign market. Thee
is no way of escaping this co ,clr ion.
What is here true Of the individual planter, is
equally true of all planters, and the whole South
collectively; on such conditions are all her sur
plus products exchanged for .egn, or North
ern goods, for her consump IN; and by buy
ing de- rer, and selling cheaper, she pays tax
fully in proportion to the whole production and
consumption.
In the case just supposed, the Southern planter
exports and imports to and from Liverpool, in
directly through New York, instead of directly
through Charleston. On his sales of produce,
ne pays profit of commission to the New York
merchant, the expenses Of handling and tram
shipment in New York to her laborers, and the
excess of freight and insurance to New York,
and thence to Liverpool, over the freight and in
surance direct from Charleston to Liverpool
the whole being over and above the cost of n
direct expectation. On his consumption, as COM
Jared with direct importation, he loses a like
Inference of freight, and he pays profits, COM
missions, and expenses of landing, and handling,
to New York merchants and laborers, instead Of
Charleston, besides the cost Of transhipping in
New York.
| Now such is actually the case (see tables A.,
| l, 2, 3, 4, of the pamphleD with % per cent of
the exports of Southern produce, and IS per
cent of the imports which are taken in exchange
for them, amounting together, in l84S, to about
| Sl2OOO0,OO0, end still more this year.
! What this large trade is worth to The North,
J cannot exactly estimate. The freight from
Charleston or Norfolk to New York, and thence
direct The difference is particularly great, from
the fact that while the coasting trade is entirely
closed by our navigation laws to all foreign yes
sells, the foreign trade has been partially open,
and is now entirely so, under the reciprocity
treaties. Therefore, the coasting freight to
New York is not regulated by the Trans-At-
lantic" and is particularly high as compared
with the freight abroad. cannot suppose that
the whole difference of cost, in profits tranship-
ment, frt ght, &C., &c, between the direct and
indirect trade can be less than 20 per cent Thus
| in l84S, at least S2t,OOO,000 were loes to the
South, and paid to Northern merchants, 'aborers,
and shippers.
| When the pamphlet called attention to the
enormous amount of the exports of Southern
produce, and Of the imports paid for them, which
were carried through Northern ports, it spoke of
it as Southern capital, the uae of which the
South lost, and the North gained, without any
equivalent paid. What the use of that capital
was worth, the pamphlet did not venture to esti-
mate: it might be supposed similar TO money
loaned, and then the use might be valued at the
legal interest, of form 6 TO 10 per cent Now at
this simple standard, Mr.. Derby and other critics
raise vast cutlery; they regard it as absurdty,
as folly and | know not what besides. But
when this clamor subsidies sufficiently for
"dispasslonate" argument to be heard, would
ask what they do with facts If trade were lost
entirely to its natural course, It would surely
take the cheapest channel, and that would be the
direct one, for single freights AID profits are GER
tainlv less than double SO it was in the Col
onial era; but it is now very different. TIE
great fact that very large amount of Southern
produce raised for expectation, and the imports
exchanged for it, are transported twice as far as
necessary, and subjected to transbipment and
profit on the route-this great fact stares the OBJ
jectors in the face, and they can escape percev-
ing it only by wilfu blindness.
Why is a Southern trade subjected to this dis
advantage! Ir cad Of regarding it as capital
loaned, on wb'c'. the North gains and the South
loses an interest Of 6 to 10 per cent it is really
n trade subjected to increased freight and North
ern profit and transhipment, worth not less than
30 per cent am not bound to explain it the
fact stands and speaks for itself Mr.. Derby
tells US that if the direct route was the cheapest
and most profitable, the trade would follow it
it only takes the indirect Northern route because
that pays best grant it but why does il pay
best BY what artificial causes--by what po-
litical legerdemain, is the longest way around
made the shortest way across?