Internal commerce

“ Modern governmental policies, looking as they do to the furthering of business interests as their chief care, are of a "mercantile" complexion. They aim to foster trade, as did the mercantile policies of the sixteenth and seventeenth centuries, although since "trade" has come to include much else than foreign commerce, the modern policies look to business in the more comprehensive sense which the term now necessarily has. ”

“ Is the authority to charter private corporations necessarily included in the delegated power to regulate commerce among the several states, or to establish post roads? We think not. What do we understand by the word "Commerce?" Webster defines it as follows: "1st. In a general sense, an interchange or mutual change of goods, wares, productions, or property of any kind between nations or individuals, either by barter, or by purchase and sale; trade; traffic. Commerce is foreign, or inland. Foreign commerce is the trade which one nation carries on with another ”

“ The citizens or subjects of each of the High Contracting Parties may trade in any part of the territories of the other by wholesale or retail in all kinds of produce, manufactures, and merchandise of lawful commerce, either in person or by agents, singly or in partnership with foreigners or native citizens or subjects ”

“ To determine what persons and commodities shall be taken abroad is to control what persons and commodities may become the subject of foreign commerce, and that is to control the lifeblood of the commerce itself. ”

“ 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. ”

“ In all commercial communities there is a commercial mart, or a capital, where exchanges are effected, cargoes disposed of in gross, and where all the great interests of trade concentrate, as the blood flows to and from the heart. In identified governments, like that of England, for instance, legislation may respect this natural tendency to concentration in commerce, and enact laws for its especial benefit and protection. ”

“ 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. ”

“ Generally, in the industrial combinations called ‘Trusts,’ the principal business is the sale of goods in many States and in foreign markets; in other words, the interstate and foreign business far exceeds the business done in any one State. This fact will justify the Federal government in granting a Federal charter to such a combination to make and sell in interstate and foreign commerce the products of useful manufacture under such limitations as will secure a compliance with the Anti-Trust law. ”

“ Accordingly, such only are the regulations to be found in the laws of the United States; whose objects are to give encouragement to the enterprise of our own merchants, and to advance our navigation and manufactures.
And it is in reference to these general relations of commerce, that an establishment which furnishes facilities to circulation, and a convenient medium of exchange and alienation, is to be regarded as a regulation of trade. ”

“ And while all domestic intercourse was thus restrained, lest any scope should remain for industry, almost every species of foreign commerce was confined to exclusive companies, who bought and sold at any price that they themselves thought proper to offer or exact. ”

“ The other class of duties are those which do not encourage one mode of procuring an article at the expense of another, but allow interchange to take place just as if the duty did not exist—and to produce the saving of labour which constitutes the motive to international as to all other commerce. Of this kind, are duties on the importation of any commodity which could not by any possibility be produced at home; and duties not sufficiently high to counterbalance the difference of expense between the production of the article at home, and its importation. ”

“ 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. ”

“ These companies had their period of rise in the sixteenth century; a rapid and wide-spread development in the seventeenth; and a subsequent decline and discredit in the eighteenth. The movement was European; every country whose situation or ambitions would at all admit of distant trading, and whose system of commerce was not, like that of Spain and Portugal, already stereotyped under government control, adopted approximately the same policy.
2. To each of these companies was secured by its charter the monopoly of trade in a particular region. ”

“ It required, therefore, that a man proposing to trade to a distant country should have an interest in the permanent welfare of the trade, by making him contribute money to the association, and subscribe to its rules.
(2) The government could diminish the risks of distant commerce by assuring merchants who spent money in building up a trade that they should not be deprived of the fruits of their labors by newcomers who had made no sacrifices. It seemed as proper to encourage in this way the investment of capital in commerce as to encourage investment in manufactures by granting patents. ”

“ The intelligent conduct of commerce through the acquisition of full information of all relevant facts may properly be sought by the co-operation of those engaged in trade, although stabilization of trade and more reasonable prices may be the result. ”

“ The subject of federal power is still 'commerce,' and not all commerce but commerce with foreign nations and among the several states. The expansion of enterprise has vastly increased the interests of interstate commerce, but the constitutional differentiation still obtains. ”

“ The incidental aid against foreign competition which they still enjoy gives them an advantage which no other pursuits possess, but of this none others will complain, because the duties levied are necessary for revenue. These revenue duties, including freights and charges, which the importer must pay before he can come in competition with the home manufacturer in our markets, amount on nearly all our leading branches of manufacture to more than one-third of the value of the imported article, and in some cases to almost one-half its value. ”

“ The government, of course, will have no pecuniary responsibility or interest in the enterprise, and the essays upon the various branches of American production will be general, and not in the interest of any firm or business organization. The enterprise is designed to collect material for the improvement of our export trade, to show what American producers can furnish for the markets of the world, to encourage American competition with foreign markets, and to call the attention of foreign capital to the opportunities of sound and profitable business with this country. ”

“ The company were to be enabled to purchase lands, &c., and to exercise all the usual powers of bodies corporate; but were not to trade in the buying or selling of any goods or merchandise, except that they might deal in bills of exchange, and in buying and selling of bullion, gold, or silver, and in selling of any goods or merchandise which should be pledged to them for money lent thereon, and might also sell the produce of their own lands. ”

“ The word “system” may give a false impression, for though the main ideas of mercantilism were generally accepted during the seventeenth and eighteenth centuries, they were greatly modified in their practical application, and were seldom carried to their logical conclusions. For example,170 though statesmen professed a desire to stimulate exports, yet export duties were generally retained in this period for the revenue that they returned, and they hurt in some cases, without question, the sale of wares abroad. ”

“ Our finance agencies, the U.S. Export-Import Bank, the Overseas Private Investment Corporation, and the Trade and Development Agency, also help American businesses compete on a level playing field in this increasingly competitive world economy. ”

“ If the manufacturer for the home market will be compelled, as you say he must be, to lower his prices at home, in order to meet the competition of foreign imported manufactured goods, which are still liable in a duty, WHAT BECOMES OF YOUR FOREIGN MARKET AFTER YOU HAVE ANNIHILATED OR EQUALIZED THE HOME ONE? If the foreigner can afford to pay the freight and the duties, and still to undersell you at home, how can you possibly contrive to do the same by him? If his goods are cheaper than yours in this country, when all the costs are included, how can you compete with him in his market? ”

“ 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 merchants, therefore, who came from other countries were now reduced to the necessity of either directly bartering their commodities for the produce of the kingdom, or, if they sold them for money in the first instance, of investing the proceeds in other goods before they could be permitted to return home. ”

“ Its sales of manufactured goods have continued to extend with a facility and promptitude of results which have excited the serious concern of countries that, for generations, had not only controlled their home markets, but had practically monopolized certain lines of trade in other lands. ”

“ The Union shall adopt measures with the aim of establishing or ensuring the functioning of the internal market, in accordance with the relevant provisions of the Treaties.
2. The internal market shall comprise an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of the Treaties. ”

“ For some two centuries it had been held that it was the duty of the state to order trade with the object of increasing the wealth and power of the nation, and a policy was followed of interference with trade and its conditions by regulations, bounties, and restrictions, which is called the mercantile system. ”

“ Pursuant to section 203 (a) (1) (A) of the Trade Act (19 U.S.C. 2253 (a) (1) (A) ) , I have further determined that these actions will facilitate efforts by the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs. ”

“ 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. ”

“ With a view to practical legislation, therefore, duties on importation may be divided into two classes: those which have the effect of encouraging some particular branch of domestic industry, and those which have not. ”

“ But as the state became more and more involved in business affairs, it was able to advise what products would be in demand, when it was advisable to use caution and economy and when activity would be rewarded. The functions of the state as a medium of exchange between the producer and the consumer became rapidly extended, and before the close of the century it became the chief and in many things the only buyer and seller of the products in most common use, as well as the sole factor in all monopolies and in banking, insurance, and public amusements. ”

“ 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. ”

“ It is one thing for competitors or a parent and its subsidiaries to divide the United States domestic market which is an economic and legal unit; it is another for an industry to recognize that foreign markets consist of many legal and economic units and to go after each through separate means. ”

“ Hence the necessity of laying those duties upon imported goods which the Constitution authorizes for revenue in such a manner as to protect and encourage the labor of our own citizens. Duties, however, should not be fixed at a rate so high as to exclude the foreign article, but should be so graduated as to enable the domestic manufacturer fairly to compete with the foreigner in our own markets, and by this competition to reduce the price of the manufactured article to the consumer to the lowest rate at which it can be produced. ”

“ As, on the other hand, a merchant may export the manufactures of his own country to his own loss and the nation’s gain. But if the merchants be gainers, the consumers, that is those for whose use manufactures are established, having a power of purchasing or not at pleasure, must be so too. ”