Foreign commerce

“ According to the doctrine now stated, the only direct advantage of foreign commerce consists in the imports. A country obtains things which it either could not have produced at all, or which it must have produced at a greater expense of capital and labour than the cost of the things which it exports to pay for them. It thus obtains a more ample supply of the commodities it wants, for the same labour and capital; or the same supply, for less labour and capital, leaving the surplus disposable to produce other things. ”

“ The people of a nation have it within their power to advance the interests of their foreign commerce in two ways: one by intelligent legislation at home, and the other by intelligent diplomacy abroad. The shipment of merchandise from one country to another means to the selling nation a foreign market for the raw material, the employment of labor to the extent of from thirty to ninety per cent. ”

“ I shall now give a short sketch of the general principles upon which a system of foreign trade may be established and preserved as long as possible, and of the methods by which it may be again recovered, when, from the natural advantages and superior ability of administration in rival nations, (not from vices at home) a people have lost for a time every advantage they used to draw from their foreign commerce. ”

“ Why foreign trade is important. The Encouragement of Foreign Commerce.—The work of the national government is not confined to the regulation and restriction of commerce; it is concerned with the encouragement and promotion of trade as well. This promotion of foreign trade is an important branch of the government’s work because the prosperity of the United States depends to a considerable extent upon its commerce with other countries. America produces a large surplus of grain, meat, cotton, and other merchandise which must be marketed abroad. ”

“ The direct benefits of commerce consist in increased Efficiency of the productive powers of the World. From this exposition we perceive in what consists the benefit of international exchange, or, in other words, foreign commerce. Setting aside its enabling countries to obtain commodities which they could not themselves produce at all, its advantage consists in a more efficient employment of the productive forces of the world. ”

“ 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. ”

“ 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. ”

“ That foreign commerce is eminently conducive to the wealth and prosperity of a country, by enabling it to import the commodities for the production of which the soil, climate, capital, and industry of other countries are best calculated, and to export in payment those articles for which its own situation is better adapted. ”

“ A danger to foreign trade is that our exports might conceivably be limited to certain quarters, and might thus rest upon a frail and shifting foundation. Fortunately, however, this is not so, for our commerce is being built upon the prosperity of the whole world. ”

“ In the so-called political economies of our forefathers we read a vast deal about the advantages to a country of having an international trade. It was supposed to be one of the great secrets of national prosperity, and a chief study of the nineteenth-century statesmen seems to have been to establish and extend foreign commerce.--Now, Paul, will you tell us the economic theory as to the advantages of foreign commerce? ”

“ Foreign commerce, nevertheless, has a powerful bearing on the consideration of value in a state of peace, to the growers of grain, meats, &c. The amount beyond their own immediate consumption and that of their families, may be about two fifths of the whole, besides the foreign export, or nearly 110 millions,—the price of which is fixed by the small amount of 13,500,000 dollars' worth sent abroad! ”

“ Every successful commercial nation has followed that policy. The two peoples that have been most successful in developing foreign commerce in the last half century are the English and the Germans. In the case of both the most prominent factor in their success has been the acquisition or creation of business enterprises abroad. ”

“ Manufactures, as in a small bulk they frequently contain a great value, and can upon that account be transported at less expense from one country to another than most parts of rude produce, are, in almost all countries, the principal support of foreign trade. In countries, besides, less extensive, and less favourably circumstanced for inferior commerce than China, they generally require the support of foreign trade. ”

“ And yet we have heard strange doctrines—ancient superstitions revived—in our days: that commercial intercourse with foreign nations is a thing of doubtful desirability; that importing is sinful; that goods may go out of the country, but only cash should come in ”

“ An unrestrained intercourse between the States themselves will advance the trade of each, by an interchange of their respective productions, not only for the supply of reciprocal wants at home, but for exportation to foreign markets. The veins of commerce in every part will be replenished, and will acquire additional motion and vigor from a free circulation of the commodities of every part. ”

“ It must however be remarked, that I say only in what concerns foreign trade; because the profits which merchants make by their dealings with their countrymen, as well as those which are made in the exclusive commerce with colonies, are not entirely gains for the state. In the trade between individuals of the same country, there is no other gain but the value of an utility produced ”

“ A consistent foreign policy, undoubtedly to be formulated and pursued by our able Secretaries of State and Commerce, will be of great service in relation to foreign trade and for our general prosperity.
To the intelligent sympathy of the country at large and the coöperation of the Government must be added the eager purpose of the manufacturer, and the interest of young men who will make of export trade their chosen field of labor. ”

“ This commerce strengthens our economy in many ways. Exports expand our business and employment opportunities: in the growing world marketplace, over 5 million American jobs are related to foreign sales. Imports also enrich our lives. Foreign goods increase consumer choice both in terms of quality and price. Competition from foreign producers provides an important stimulus to American producers to maintain and enhance the quality of American-made products. ”

“ A second general cause accounting for the world’s progress in commerce is political—the commercial policy followed by the leading nations of the world. Up to the nineteenth century, practically every country strove to promote its trade, navigation interests, and its power as a nation by means of the mercantile system,—a system of strict and detailed regulation of foreign trade by means of tariffs and navigation laws. Each country strove to determine the nature of its international trade, and endeavored to carry on its commerce in its own ships. ”

“ Other countries showed but a languid desire for the products which were then our staple exports, and we had great need of the foreign wares composing our509 imports. We could not afford even to discriminate against the importation of manufactured goods, with an idea of protecting native manufactures; our manufactures were then so weak that a policy of high protection, to exclude foreign wares, would have caused serious distress to the consumers at home. ”

“ But what all the violence of the feudal institutions could never have effected, the silent and insensible operation of foreign commerce and manufactures gradually brought about. ”

“ Our commerce is rapidly increasing, and is extending more widely the circle of international exchanges. Great as has been the increase of our imports during the past year, our exports of domestic products sold in foreign markets have been still greater. ”

“ The commerce of India does not grow, nor does that of Portugal, or of Turkey; but that of the protected, countries does increase, as has been shown in the case of Spain, and can now be shown in that of Germany. ”

“ Prosperity of American commerce and shipping.—The European wars, therefore, introduced American commerce to a new era of prosperity. “No one was limited to any one506 branch of trade; the same individual was concerned in voyages to Asia, South America, the West Indies, and Europe.” Our ships gathered the products of distant countries, coffee, sugar, tea, pepper, etc., and purveyed them to the people of Europe. In many years the value of foreign exports exceeded that of domestic exports ”

“ On the other hand, there are imports so entirely of foreign origin, and so free from considerations of competition with domestic industry, that a large revenue may be raised upon them in the custom-house, without disturbing the freedom or equity of international trade. ”

“ The German economic system as it existed before the war depended on three main factors: I. Overseas commerce as represented by her mercantile marine, her colonies, her foreign investments, her exports, and the overseas connections of her merchants; II. The exploitation of her coal and iron and the industries built upon them; III. Her transport and tariff system. Of these the first, while not the least important, was certainly the most vulnerable. The Treaty aims at the systematic destruction of all three, but principally of the first two. I (1) ”

“ We should have a good navy, and our sea-coast defences should be put in the finest possible condition. Neither of these cost much when it is considered where the money goes, and what we get in return. Money expended in a fine navy, not only adds to our security and tends to prevent war in the future, but is very material aid to our commerce with foreign nations in the meantime. ”

“ It is in the fetching and carrying manufactures, accordingly, that foreign trade is chiefly employed. In manufactures, a very small advantage will enable foreigners to undersell our own workmen, even in the home market. ”

“ 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. ”

“ High duties on imports were resorted to, at first perhaps mainly for revenue, but afterwards in the interest of national production. Commercial treaties were a principal object of diplomacy, the end in view being to exclude the competition of other nations in foreign markets, whilst in the home market as little room as possible was given for the introduction of anything but raw materials from abroad. The colonies were prohibited from trading with other European nations than the parent country, to which they supplied either the precious metals or raw produce purchased with home manufactures. ”

“ Foreigners would never think of sending us goods unless we paid for them, either in other goods, or in money. Now, if we pay in goods, workmen will of course be needed to make [Pg 133] those goods; and the more we buy from abroad, the more we shall need of home produce to send in exchange. Thus, the purchase of foreign goods encourages home manufactures in the best possible way, because it encourages just those branches of industry for which the country is most suited, and by which wealth is most abundantly created. ”

“ In the case of England and Germany, as well as many other prosperous countries whose foreign-trade sheets show an excess of imports over exports, this excess represents the profit on trading abroad, and the inflow of returns upon capital invested abroad. ”

“ Our foreign trade requires men of this type to travel in all parts of the world as commercial ambassadors, diligently collecting, compiling, and sending back to the United States information necessary in manufacturing goods for foreign consumption ”

“ If they were entirely separate, without political or commercial connection, it is manifest, that the consumption of the manufacturing states of foreign articles could not exceed twenty millions, the sum at which the value of their exports, of domestic products, and the profit of their foreign trade is estimated. ”

“ There are thus only a dozen or so merchants in the world, and their business being supervised by the international council, a simple system of book accounts serves perfectly to regulate their dealings. Customs duties of every sort are of course superfluous. A nation simply does not import what its government does not think requisite for the general interest. Each nation has a bureau of foreign exchange, which manages its trading. ”

“ I do not doubt that a very largely increased foreign trade is accessible to us without bartering for it either our home market for such products of the farm and shop as our own people can supply or the wages of our working people. ”

“ It is not on the person from whom we buy, but on all those who buy from us, that a portion of our custom-duties spontaneously falls. It is the foreign consumer of our exported commodities, who is obliged to pay a higher price for them because we maintain revenue duties on foreign goods. ”