Lords of Trade

“ The merchants who have the responsibility of the import trade at the different marts also must satisfy themselves that they get good things, and all the traders must obey the State merchant in these particulars. ”

“ By buying silks and wines of France, we give her so much purchasing power in the world's markets, a power which, as her trade returns show—she is a large importer upon balance—she fully exercises. Well, if she spends the money she receives from you in those products of foreign countries which she requires, as we know she does, she thereby, in turn, confers on those countries a corresponding purchasing power, and they, in their turn, lay out the money so received among other nations, and, as we are the principal manufacturers, we get the principal share in the business. ”

“ It was supposed that, without restrictions, the sum might be doubled. Everybody wished for a share in the golden harvest, and much money was transferred from legitimate and lucrative trade to the purchase of colonial produce for exportation. But what is called effective demand for any commodity depends not on the desire of the purchaser, but upon his power of purchase. The exhausting wars of late years so limited that power of purchase that the exports of England either lay in the ports unsold or were got rid of at less than the cost price. ”

“ For if your merchants are not permitted to re-export the surplus foreign produce to those markets where there is a demand for it, it will remain on their hands and rot in their storehouses. This would also sink the price of your own produce, as there could not be a sufficient demand for it, because your merchants would not receive in return foreign produce. Your trade must, therefore, be diminished nearly in the proportion before stated. I ask gentlemen if this trade is cut off, how your merchants are to get specie to meet the balance in favor of Great Britain of twelve millions of dollars? ”

“ The government could then oversee the trade more easily, could collect its dues, insure good quality, and protect merchants more readily, and it could also make better use of trade as a weapon of policy, directing the stream of goods where it pleased, and so rewarding or punishing other states. ”

“ The day are gone when the merchant adventurer sent out his ships, laden with merchandise, which were to bring home to him the produce of distant lands. There are, of course, a number of merchants who, having their own establishments in foreign parts, do both an import and an export business, balancing their own transactions without many bills of exchange passing; but, on the whole, trade is now much more specialised, there are importers and exporters, and their transactions are entirely independent of each other. ”

“ I am certain that if the Settlers in South America had known it, they might have got Cargoes of Slaves there, they are so fond of Trade, and so fond of arming themselves with Power to fight one against another, that they frequently would sell their Slaves for Muskets. Is the Population sufficiently numerous to afford any permanent Supply of Slaves?
I should say that the Population is immense; they appeared very prolific. Did you ever hear that any great Depopulation of the Natives had been going on during the last few Years? ”

“ Regulations are then drawn up, and the tariff on goods is fixed, from which the institution is to derive its future revenue. For all the staples of trade there are usually separate guilds, mixed establishments being comparatively rare. ”

“ The vulgar theory disregards this benefit, and deems the advantage of commerce to reside in the exports: as if not what a country obtains, but what it parts with, by its foreign trade, was supposed to constitute the gain to it. An extended market for its produce—an abundant consumption for its goods—a vent for its surplus—are the phrases by which it has been customary to designate the uses and recommendations of commerce with foreign countries. ”

“ Yet almost wherever commerce had taken any root, there were they to be found, pursuing perseveringly under obloquy, danger, and the cruellest oppression, their peculiar trade. To draw down upon them still more of the popular suspicion and dislike in a rude and ignorant age, that trade was not any species of industry by which produce of any kind was visibly created; it did not necessarily imply even the exertion of any peculiar powers or acquirements; it was labour neither of the hand nor of the head. Yet it was, in truth, a trade as essential to the creation of wealth as any labour. ”

“ Lastly, the King is ever sure to get by trade, when both the Commonwealth and Merchant shall lose severally as afore-written, or joyntly, as it may and doth sometimes happen, when at one and the same time our Commodities are over-ballanced by forraign wares consumed, and that the Merchants success prove no better than is before declared. ”

“ We raise about £20,000,000 of our annual revenue by means of customs' duties on the foreign commodities which we import, and this fact is sometimes adduced by the advocates for protection, without any explanation, leaving their readers to infer that ours is not, as it really is, a free-trade tariff. ”

“ Suppose that a country should be opened to our merchants, disposed to buy from us in abundance, but which can sell to us scarcely anything, as every commodity which it affords could be got cheaper by us from some other quarter. Nevertheless, our trade with this country will enable us to obtain from all other countries their commodities at a lower price. At the first opening of this commerce of mere exportation, we must have received in payment a large quantity of money; for which our customer will have been indemnified by other countries, in exchange for her commodities. ”

“ We send school-books and machinery to China; she sends us tea, matting, and bamboo. The whole right theory of trade is a give-and-take between men and nations, based on a just price, and with a deep law of Value, not yet wholly formulated, underlying each transaction. ”

“ Have these ideas been realized? or do they not lose some of their capital in every adventure, and continue the unprofitable trade from year to year, subsisting under the hopes of happier times under an efficient general government? The ungainful trade carried on by our merchants has a baneful influence on the interests of the manufacturer, the mechanic, and the farmer; and these, I believe, are the chief interests of the people of the United States. ”

“ We think nowadays that the resources of a state depend upon the prosperity of the people, no matter whether this prosperity comes from agriculture or from manufactures, 167from internal trade or from foreign trade. Statesmen, however, of the period under discussion, set a peculiarly high value on foreign commerce, and regarded it as a more important branch of industry than any other. ”

“ And if we do but look back a little, to a few Generations past, we may soon find what high Advantages have accrued to His Majesty in His Customs; and to the Kingdom in general, by the Cloathing-trade, being lively managed by the Merchants, and what worthy and noble Companies of Merchants, have been Associated and Incorporated ”

“ I buy, dispense, and disperse human labor. I create wants, and I satisfy them. I will establish honest laws of trade. What I do shall be rated as commercial law. What I say shall be quoted as a way of equity and probity. That man is a King of Trade. His throne is set upon hills and seas. His subjects are all men with needs, and all men with products of the land, the coasts, the sea, or brain, or skill. This is the lawful King of Trade. He represents God's mart of exchange. Primarily, goods are not bought and sold in the market. They are first transferred in that man's brain. ”

“ We turn, then, to the next question, Whether it may be possible to find a firm basis for the maintenance of our commercial and Imperial position in our trade with the other foreign countries?—those which are classed by the Board of Trade, not in all cases correctly, as 'neutral' markets. ”

“ In 1820 a number of London merchants presented a petition to the House of Commons which covered import duties of every kind, and stated "That freedom from restraint is calculated to give the utmost extension to foreign trade, and the best direction to the capital and industry of the country." ”

“ In truth, unless an early and thorough revision of our whole commercial system is made, the mercantile interests of Great Britain will be placed in the greatest jeopardy. This may appear incredible to that portion of the public who are gulled by the political economists, and who are content to receive the Board of Trade returns of exports and imports as satisfactory proofs of prosperity. But there is not a merchant in one of our large towns who does not know that the case is otherwise. ”

“ The sum of the doctrine of the writers of the work on the subject of foreign commerce is given in the following words:—"That trade which makes money flow in most plentifully upon us, enables our people to subsist themselves better by their labour, raises the value of our lands, and occasions our rent to be better paid, must always be reckoned the best trade; for these are the only rules by which it is possible to state and determine the value of any particular trade, or of the general trade of the whole nation." ”

“ But do we, civilized beings, indulge in the absurd and barbarous notion that we must own the countries with which we wish to trade? Here are our official reports before us, telling us that of late years our export trade has grown enormously, not only of farm products, but of the products of our manufacturing industries ”

“ Without being expert in the computation of exports and imports, or very accurate in combining the different courses of exchange between the different cities of Europe, a statesman may lay it down as a maxim, that whatever foreign commodity, of whatsoever kind it be, is found to be consumed within the nation he governs, so far the balance of trade is against her; and that so far as any commodity produced either by the soil, or labour of the inhabitants, is consumed by foreigners, so far the balance is for her. ”

“ We are told that we produce more than this country can consume, and must have foreign markets in which to sell our surplus products. Well, must we own the countries with which we wish to trade? Is not this a notion ludicrously barbarous? ”

“ But here we must not take the Kings gain in this large sense, for so we might say that His Majesty should get, although half the trade of the Kingdom were lost; we will rather suppose that whereas the whole trade of the Realm for Exportations and Importations is now found for to be about the yearly value of four million and a half of pounds; it may be yet increased two hundred thousand pounds per annum more by the importation and consumption of forraign wares. ”

“ You do not forget, farmers though you are, that 95 per cent. of the product of your farms is consumed [139] at home, and you are too wise to put that in peril in a greedy search after foreign trade. [Great applause.] You will not sacrifice these great industries that have created in our country a consuming class for your products. [Cheers.] I do not think that there is any doubt what tariff policy England would wish us to adopt, and yet some say that England is trembling lest we should adopt free trade here [laughter] , and so rob her of other markets that she now enjoys. ”

“ The case which we have just examined, is an example in how remarkable a manner every cause which materially influences exports, operates upon the prices of imports. According to the ancient theory of the balance of trade, and to the associations of the generality of what are termed practical men to this day, the sole benefit derived from commerce consists in the exports, and imports are rather an evil than otherwise. ”

“ The import of manufactured articles became more and more essential, and alike for the importing country and for the exporting countries trade was more lucrative in a large area with a centralised and unified administration, freed from tariff hindrances imposed by petty states. ”

“ But, besides the injury to the native merchant by his exclusion from the export trade, it was strangely forgotten that the monopoly of that trade secured to the foreigner must have deprived the grower of perhaps half his customers,—namely, of all the English dealers who would have purchased the article for exportation; and must thus, by diminishing competition, have tended to depress prices instead of raising them. ”

“ Growth of the sphere of commerce and resulting specialization of production.—The world has gone far toward realizing the ideal of the early free trader, that wherever a man318 might be, he should share in the productive advantages of all other men, wherever they might be. Customs tariffs have been able to check the movement of commerce; they have been powerless to stop it. The sphere of ordinary trade, which was once the manor, a mere hamlet or village ”

“ The countries not possessing a native supply, could obtain it only by what was called a favourable balance of trade, that is to say, by exporting to a value exceeding that of their imports, and receiving the difference in money. ”

“ As you are all aware, Great Britain stands alone among the nations as a free-trading country. It is natural to inquire how this is the case, how it is that people, acute, thoughtful, and intelligent, as, for instance, the French, the Germans, and the Americans, cling to the doctrines of Protection, while we alone adhere to those of Free Trade? ”

“ But, to be of any advantage to the British manufacturer, the British workman, and the British consumer, the following impossible state of things must occur. In addition to the goods which we now make for the foreigner, we must be ready to supply our home market with much of which the foreigner now supplies us, but of which we now are to cut him out. He is to sit down quietly under this, and buy of you just as much as he did before, although you have taken away so much of his purchasing power by cutting him out! At present, the foreigner makes certain goods better and cheaper than we can. ”