Commercial treaty

“ For this purpose, a new commercial treaty between the two countries is desirable. Such a treaty should aim at placing on an equitable basis the commercial relations between the two countries and bringing them into conformity with their improved political relations. ”

“ Commercial arrangements, if acceptable in themselves, will not be the less so if coupled with those relating to navigation and boundary. We have only to take care that they be acceptable in themselves.
There are two principles which may be proposed as the basis 587 of a commercial treaty: 1. That of exchanging the privileges of native citizens ”

“ Scope of a Treaty or Commerce.
I must begin with a definition.
It is usual to think of Treaties of Commerce as restricted to tariffs. Nothing is more erroneous and no popular error is more detrimental to an intelligent understanding of the subject. One unpropititious consequence of the error is that treaties of commerce are popularly supposed by some to be a counterblast to free trade, by others as a step towards it. In reality, treaties of commerce are simply agreements between States relating to trade carried on between them. ”

“ Passing over trade agreements affecting the Eastern empire, the modern commercial treaty system came into existence in the 12th century. Genoa, Pisa and Venice were then well-organized communities, and were in keen rivalry. Whenever their position in a foreign country was strong, a trading centre was established, and few or no specific engagements were made on their part. But in serious competition or difficulty another course was adopted: a formal agreement was concluded for the better security of their commerce and navigation. ”

“ Commercial treaties are an artificial means to obtain a natural [Pg 344] end—they are the swathing bands of commerce that impede the free operations of nature. Treaties are like partnerships; they establish intimacies which sometimes end in profligacy, and sometimes in ruin and bankruptcy, distrust, strife, and quarrel.
“No treaty ought to have been made with Great Britain, for she is famed for perfidy and double dealing; her polar star is interest; artifice, with her, is a substitute for nature. ”

“ In my last I acquainted your Excellency, that Mr Hartley was soon expected here to exchange ratifications of the Definitive Treaty. He is now arrived, and proposes to make the exchange this afternoon. I shall then be enabled to send a copy. Enclosed is the new British Proclamation respecting our trade with their Colonies. It is said to be a temporary provision, till Parliament can assemble and make some proper regulating law, or till a commercial treaty shall be framed and agreed to. Mr Hartley expects instructions for planning with us such a treaty. ”

“ Or that the mere fact of a territory having been ceded by one sovereignty to another, opens it to a free commercial intercourse with all the world, as a matter of course, until the new possessor has legislated some terms upon which that may be done. There is no such commercial liberty known among nations, and the attempt to introduce it in this instance is resisted by all of those considerations which have made foreign commerce between nations conventional. 'The treaty that gives the right of commerce, is the measure and rule of that right.' Vattel, c. ”

“ For a time there had been war to the knife with English merchants, following the great commercial treaty popularly called the Malus Intercursus. [Sidenote: 1506] According to the theory then held that one nation's loss was another's gain, [Sidenote: Commercial policy] this treaty was considered a masterpiece of policy in England and the foundation of her commercial greatness. It and its predecessor, the Magnus Intercursus, [Sidenote: 1496] marked the new policy, characteristic of modern times, that made commercial advantages a chief object of diplomacy and of legislation. ”

“ A commercial treaty is possible in which we might grant them more favourable terms than to the others, and in which the tariff would not be raised, indeed perhaps reduced. The high duties which we have imposed upon Russia and America need not be applied to Austrian maize and barley. ”

“ France, 1471, 1497 and 1510; Florence, 1490. The commercial treaty policy in England was carried out systematically under Henry IV. and Henry VII. It was continued under James I. to extend to Scotland English trading privileges. The results attained in the 17th century were—regularity in treaty arrangements; their durable instead of personal nature; the conversion of permissive into perfect rights; questions as to contraband and neutral trade stated in definite terms. Treaties were at first limited to exclusive and distinct engagements between the contracting states ”

“ If blended with a treaty of commerce, she will make it the price of injurious concessions. Indeed, we are infinitely better without such treaties with any nation. We cannot too distinctly detach ourselves from the European system, which is essentially belligerent, nor too sedulously cultivate an American system, essentially pacific. But if we go into commercial treaties at all, they should be with all, at the same time, with whom we have important commercial relations. France, Spain, Portugal, Holland, Denmark, Sweden, Russia, all should proceed pari passu. ”

“ Under this treaty we enjoy as between the United Kingdom and France and Algeria in all other matters but Customs duties, the treatment of the most favoured nation, and thus no immunity, favour, or privilege in matters of trade or industry can be granted to the subjects or citizens of any other country, so long as this treaty remains in force, without British subjects have unconditionally the benefit of it. ”

“ Mr. RUTLEDGE observed, that, as the instructions to foreign ministers now stood, it was conceived they had no powers for commercial stipulations, other than such as might be comprehended in a definitive treaty of peace with Great Britain. He said, he did not pretend to commercial knowledge, but that it would be well for the United States to enter into commercial treaties with all nations, and particularly with Great Britain. He moved, therefore, that the committee should be instructed to prepare a general report for that purpose. ”

“ And even where freedom of commercial intercourse is made a subject of stipulation in a treaty, it is generally with a view to the removal of some previous restriction, or the introduction of some new privilege, most frequently, is identified with the return to a state of peace. But another view of the subject leads directly to the same conclusion. Power to regulate foreign commerce is given in the same words, and in the same breath, as it were, with that over the commerce of the States and with the Indian tribes. But the power to regulate foreign commerce is necessarily exclusive. ”

“ Their report (dated January, 1866,) says:—
"'In accordance with the resolutions of Congress and the notification of the Executive, the commercial arrangement known as the "Reciprocity Treaty," under which the trade and commerce between the United States and the British Provinces of North America have been carried on since 1854, expires on the 17th day of March, 1866. ”

“ Since my last annual message the exchange has been made of the ratification of a treaty of commerce and navigation with Belgium, and of conventions with the Mexican Republic for the further extension of the joint commission respecting claims; with the Hawaiian Islands for commercial reciprocity, and with the Ottoman Empire for extradition; all of which have been duly proclaimed. ”

“ With such nations, the only wisdom is, to conclude treaties, not of reciprocity, but of commerce; that is, treaties in which, in consideration of certain branches of our manufactures being admitted on favourable terms, we agree to admit certain articles of their produce on equally advantageous conditions. Thus, a treaty, by which we agreed to admit, for a moderate duty, the wines of France, which we can never rival, in return for their admitting our iron and cotton goods on similar terns, would be a measure of equal benefit to both countries. ”

“ The real difficulty in the way of negotiating profitable reciprocity treaties is that we have given freely so much that would have had value in the mutual concessions which such treaties imply. I can not doubt, however, that the present advantages which the products of these near and friendly States enjoy in our markets, though they are not by law exclusive, will, with other considerations, favorably dispose them to adopt such measures, by treaty or otherwise, as will tend to equalize and greatly enlarge our mutual exchanges. ”

“ And further, that all such duties and imposts as may mutually be thought necessary to lay on them by either party shall be ascertained and regulated on principles of exact reciprocity by a tariff, to be formed by a convention for that purpose, to be negotiated and made within one year after the exchange of the ratification of this treaty; and in the meantime that no other duties or imposts shall be exacted from each other's merchants and ships than such as may be payable by natives in like cases. ”

“ Speaking of treaties of commerce, he says, "When a nation binds itself by treaty, either480 to permit the entry of certain goods from one foreign country which it prohibits from all others, or to exempt the goods of one country from duties to which it subjects those of all others, the country, or at least the merchants and manufacturers of the country, whose commerce is so favoured, must necessarily derive great advantage from the treaty. ”

“ The reciprocity clause of the tariff act wisely and effectively opens the way to secure a large reciprocal trade in exchange for the free admission to our ports of certain products. The right of independent nations to make special reciprocal trade concessions is well established, and does not impair either the comity due to other powers or what is known as the "favored-nation clause," so generally found in commercial treaties. What is given to one for an adequate agreed consideration can not be claimed by another freely. ”

“ For instance, that all instrumental regulations, such as papers, bonds, certificates, oaths, and all other documents should be, between Great Britain and the United States, upon the same footing, and no other than as between Great Britain and any other independent nation, but that all duties, drawbacks, bounties, rights, privileges, and all pecuniary considerations, should emerge into action and effect as before. I say emerge as before, not stipulated for any fixed term, because I am speaking of a provisional treaty, not of a provisional bill of commerce, for a specified period. ”

“ When a portion of a country establishes its independence, for example the several American republics, according to present usage foreign trade is placed on a uniform most favoured nation footing, and fresh treaties are entered into to regulate the commercial relations of the new communities. In the case of former Turkish provinces, the capitulations remain in force in principle until they are replaced by new engagements. ”

“ That the States may impose equal duties on foreigners as natives: and 2. That they may prohibit the exportation or importation of any species of goods whatsoever. When they shall have entered into such treaty, the superintendence of it results to them; all the operations of commerce, which are protected by its stipulations, come under their jurisdiction, and the power of the States to thwart them by their separate acts, ceases. If Great Britain asks, then, why she should enter into any treaty with us? why not carry on her commerce without treaty? ”

“ A nation, with which we might have a treaty of commerce, could with much greater facility prevent our forming a connection with her competitor in trade, though such a connection should be ever so beneficial to ourselves. ”

“ Excepting in those cases where, from reasons of contiguity of territory and the existence of a common border line incapable of being guarded, reciprocal commercial treaties may be found expedient, it is believed that commercial policies inducing freer mutual exchange of products can be most advantageously arranged by independent but cooperative legislation. ”

“ With two countries like these the argument for treaties is strong, without pursuing the inquiry further. But it becomes irresistible, when we consider the positive demands of our commerce in these quarters. Even in spite of coldness, neglect, and injustice, our commercial relations have grown there to great importance. If assured of the customary protection afforded by treaties and the watchful presence of a diplomatic representative, they must become of greater importance still. ”

“ By the sixth article of the Confederation, the States renounce, individually, all power to make any treaty, of whatever nature, with a foreign nation. By the ninth article, they give the power of making treaties wholly to Congress, with two reservations only. 1. That no treaty of commerce shall be made, which shall restrain the legislature from making foreigners pay the same imposts with their own people: nor 2d, from prohibiting the exportation or importation of any species of merchandise, which they might think proper. ”

“ They cannot impose heavier duties on French commodities than on those of other nations. They cannot throw peculiar obstacles in the way of their recovery of debts due to them, &c., &c., because those things are provided for by treaty. Treaties, however, are very imperfect machines for regulating commerce in the detail. The principal objects in the regulation of our commerce would be: 1. to lay such duties, restrictions, or prohibitions on the goods of any particular nation, as might oblige that nation to concur in just and equal arrangements of commerce. ”