Intrastate commerce

“ 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. ”

“ While bearing in mind the liberal construction, that commerce with foreign nations means commerce between citizens of the United States and citizens and subjects of foreign nations, and commerce among the States means commerce between the individual citizens of different States, there still remains a very large amount of commerce, perhaps the largest, which, being trade or traffic between citizens of the same State, is beyond the control of Congress. ”

“ Interstate commerce, then, includes all agencies of trade among the states: steamships, sailing vessels, railroads, street railways, motor trucks, telegraphs, telephone systems, oil pipelines, power lines, and all passengers, goods, messages, or anything else carried by them. All persons who have to do with such things are engaged in interstate commerce. But interstate commerce does not include the manufacture of goods in any state, even though they be intended for sale in other states. Commerce does not begin until the product is finished and started on its way. ”

“ Nor can it be properly concluded, that, because the products of domestic enterprise in agriculture or manufactures, or in the arts, may ultimately become the subjects of foreign commerce, that the control of the means or the encouragements by which enterprise is fostered and protected, is legitimately within the import of the phrase foreign commerce, or fairly implied in any investiture of the power to regulate such commerce. ”

“ But the system which has been mentioned, is far from characterizing the general policy of nations. The prevalent one has been regulated by an opposite spirit. The consequence of it is, that the United States are, to a certain extent, in the situation of a country precluded from foreign commerce. They can, indeed, without difficulty, obtain from abroad the manufactured supplies of which they are in want; but they experience numerous and very injurious impediments to the emission and vent of their own commodities. ”

“ The non-intercourse would press most severely on the Southern and Western States, who depend chiefly on the immediate exchange of their productions for foreign goods, and would throw almost the whole commerce of the nation into the hands of the Eastern States, without competition, and also add a premium on their manufactures at the expense of the agricultural interest to the South and West. ”

“ The United States have every means, by nature, to enable them to distribute supplies mutually among one another; to supply other nations with many articles, and to carry for other nations. Our commerce would not be kindly received by foreigners, if transacted solely by ourselves. As it is the spirit of commercial nations to engross as much as possible the carrying trade, this makes it necessary to defend our commerce. But how shall we compass this end? England has arisen to the greatest height, in modern times, by her navigation act, and other excellent regulations. ”

“ In these two articles of the Confederation, the words imports, exports, and imposts are used with exclusive reference to foreign trade, because they have regard only to the treaty-making power of the federation.
As soon as peace was restored by the success of the Revolution, and commerce began to revive, it became obvious that the most eligible mode of raising revenue for the support of the General Government and the payment of its debts was by duties on foreign merchandise imported into the country. The Congress accordingly recommended the States to levy a duty of five per cent. ”

“ 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. ”

“ Less than two years hence, the tariff levies on our exports to the United States will be in operation. By that time we shall be manufacturing articles and goods needing export markets and facing stiff competition there. We must therefore, attend to the problem of foreign trade promotion. We must locate markets for our products. This means that our home production should be placed on a competitive basis abroad not only in price but in quality. But more than anything else, our home market should be developed in order to promote our foreign trade. ”

“ Do not such restrictions affect the very foundation of interstate trade? How is a manufacturer or a merchant of one state to sell his goods in another state without, in some way, obtaining orders therefor? ”

“ 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. ”

“ American exports are now preponderantly manufactured goods, and this preponderance will increase steadily with time. Therefore the freedom of the seas and open markets for manufactured goods—not markets closed by economic leagues—are a vital necessity to the United States. ”

“ The definition of imports as articles brought into the country finds support also in the circumstance that it has never been seriously doubted that merchandise brought into the United States from without is subject to the power of Congress to impose customs duties, even though the merchandise is not of foreign origin. ”

“ Section 203 (a) (3) (E) of the Trade Act (19 U.S.C. 2253 (a) (3) (E) ) authorizes the President to negotiate, conclude, and carry out agreements with foreign countries limiting the export from foreign countries and the import into the United States of an imported article with regard to which the U.S. International Trade Commission has made an affirmative finding regarding serious injury, or the threat thereof. ”

“ 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 state of them has been materially changed by the act of Congress, passed at their last session, in alteration of the several acts imposing duties on imports, and by acts of more recent date of the British Parliament. The effect of the interdiction of direct trade, commenced by Great Britain and reciprocated by the United States, has been, as was to be foreseen, only to substitute different channels for an exchange of commodities indispensable to the colonies and profitable to a numerous class of our fellow-citizens. ”

“ The third article provides that the productions of either nation shall be admitted into their respective ports upon payment of the same duty as would be payable on the same merchandise if it were the growth of any other foreign country. No prohibition can be put upon the importation or exportation of the produce of either nation which shall not extend to all other foreign nations ”

“ My Administration has developed a National Export Strategy that places special emphasis on helping small- and medium-sized companies seize trade opportunities. As part of this plan, we have created a country-wide network of U.S. Export Assistance Centers to provide information and capital to businesses seeking to expand. The results speak for themselves; in 1995, actions taken by Centers like those in Chicago and Baltimore dramatically increased the number of U.S. firms entering new markets and boosting export sales. ”

“ When Congress passed the 1930 Tariff Act there were roughly 700 categories of imports. Since that time—with the adoption of the Reciprocal Trade Agreement Act—the number of categories has been increased by the thousands. Most of the increases were in categories created to help foreign countries expand their trade in the United States. The duty on a comparatively few imports has been revised upward as a measure of protecting some of the American industries from lower-cost foreign competition. ”

“ The manufacturer or the merchant must take the pains to accommodate a direct import trade to the exigencies of the local market. As an example, smaller bales and shorter lengths are requisite in the piece goods. The establishment of sample warehouses at the treaty ports, and in the more important trade-centres of the interior, where bales of shirting, cotton and woollen goods, cases of farming implements, &c., could be opened and sold for cash, would appeal to the natives. ”

“ In this increasingly interdependent world, American business must focus more of its efforts on exporting our goods and services. A promising new tool is now available to increase export participation: the Export Trading Company Act of 1982. This law will help American businesses, particularly small and medium-sized companies, to organize themselves for stronger export efforts with considerably less hindrance by government regulation. ”

“ 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? ”

“ Since the day in July, 1789, when George Washington submitted20 to the Senate the first list of Customs collectors, the nation’s overseas trade has grown from a mere trickle to a multi-billion-dollar flood. The administration of the Bureau has become more complicated and its operations more diverse as the commercial intercourse between nations has grown. ”

“ The government, moreover, now seeks actively to promote American trade with foreign countries, and especially with Latin America. A new merchant marine is expected to give additional facilities to American exporters and enable them to meet their British and German competitors on more nearly equal terms. Moreover, the United States is learning that in the export trade co-operation is desirable, and the {66} Federal Trade Commission seems about to grant permission to manufacturers to combine for the conduct of business in foreign countries. ”

“ 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. ”

“ The other, and this is even a more pressing solicitude to him, is that it is of vital importance to us to look after our external markets, to make sure that we shall always have customers, and good customers, to buy our goods, and so to enable us to pay for our indispensable imports. The Free Trader does not share this solicitude. He has got a comfortable theory that if you only look after your imports your exports will look after themselves. ”

“ We have inland navigation. Our last exports did not exceed £1,000,000. Our export trade is entirely in the hands of foreigners. We have no manufactures—depend for supplies on other nations—and so far are we from having any carrying trade, that, as I have already said, our exports are in the hands of foreigners. Besides the profit that might be made by our natural materials, much greater gains would accrue from their being first wrought before they were exported. ”

“ Deep sea products come from waters beyond the national sovereignty or jurisdiction and hence are imports under any definition. American fisheries even may require, unless American bottoms are American territory, legislation to relieve their catch of general tariff charges. Procter & Gamble Manufacturing Co. v. United States, 19 C.C.P.A., Customs, 415. The required conclusion, it seems to me, is that an import is an article brought from beyond the sovereignty or jurisdiction of the United States. ”

“ The breaking down of the barriers which still separate us from the Republics of America whose productions so entirely complement our own will aid greatly in removing the disparity of commercial intercourse under which less than 10 per cent of our exports go to American countries. ”

“ The exchange of domestic products between the states is greatly restricted through lack of cheap transportation facilities, and by the suicidal imposition of import and export duties by the states, either for revenue or for the protection of home industries. ”