Trade society

“ If the trade is one in which the journeymen frequently travel in search of work, we note the slow elaboration of systematic arrangements for the relief of these 'tramps' by their fellow-workers in each town through which they pass, and the inevitable passage of this far-extending tramping society into a national Trade Union. ”

“ Society thrives on trade simply because trade makes specialization possible, specialization increases output, and increased output reduces the cost in toil for the satisfactions men live by. That being so, the market place is a most humane institution. ”

“ 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. ”

“ The first thought of a wise business man is for his markets, and you as a great trading nation are bound to think of your markets, not only your markets of to-day but of to-morrow and the day after to-morrow.
The Free Trade theory was the birth of a time when our imports were practically all supplemental to our exports, all indispensable to us, and when, on the other hand, the whole of the world was in need of our goods, far beyond our power of supplying it. ”

“ 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. ”

“ By protective duties and bounties on exportation, by subsidies of all sorts to manufactures and national navigation, by the acquiring of transmarine colonies, by the creation of privileged commercial companies, by the inspection of manufacturing processes, by the perfecting of means of transportation and the suppression of interior custom-houses, every state strives to increase its means of production, to close its market to its competitors, and to make the balance of trade incline in its favor. ”

“ Today one out of every six manufacturing jobs is tied to exports. So first, I offer a strategic trade policy, including new free trade agreements with the emerging democracies of Eastern Europe. By increasing trade we increase American jobs. ”

“ It must not however be forgotten, that even in the countries of most active competition, custom also has a considerable share in determining the profits of trade. There is sometimes an idea afloat as to what the profit of an employment should be, which though not adhered to by all the dealers, nor perhaps rigidly by any, still exercises a certain influence over their operations. ”

“ 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. ”

“ The fundamental principle of the manufacturing system was, that a trade was profitable to the public whenever, by means of any restrictions or exclusive privileges, it could be made gainful to the capitalists by whom it was carried on, and their equally protected allies, the raisers and manufacturers of the merchandise the export of which it encouraged. The interest of the purchasers and consumers of the commodities brought home by the trade, that is, of the great body of the community, this theory entirely overlooked, or at any rate treated as a matter of very secondary importance. ”

“ With the results of this labor and their interest they are to pay their board, and also purchase whatever else they require, at cost, at the warehouses of the community, which are to be filled by the community as such. To perfect this economy, in the course of time they must have all trades and all modes of business carried on among themselves, from the lowest mechanical trade which contributes to the health and comfort of life, to the finest art which adorns it with food or drapery for the mind. ”

“ 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? ”

“ 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 ”

“ 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. ”

“ The lists of imports and exports and of the places from which they flowed to and from the centres of trade, as they swelled in bulk from time to time, show how busily and steadily the threads of commerce had been weaving together the labour and interests of mankind, and extending a security and bounty of existence unknown in former ages. ”

“ So that we are not singly to value ourselves upon the material, but also upon the manufacture, which we should make as easy as we can, by not laying over-heavy burdens upon the manufacturer. And our woollen goods being two-thirds of our foreign exports, it ought to be the chief object of the public care, if we expect to be gainers in the balance of trade, which is what we hunt after in these inquiries. ”

“ 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. ”

“ 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 ”

“ 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. ”

“ The inland or home trade, the most important of all, the trade in which an equal capital affords the greatest revenue, and creates the greatest employment to the people of the country, was considered as subsidiary only to foreign trade. ”

“ Nay, more, this subdivision of functions shows itself not only among the different parts of the same nation, but among different nations. That exchange of commodities which free-trade promises so greatly to increase, will ultimately have the effect of specializing, in a greater or less degree, the industry of each people. ”

“ But when all the affairs of life, large and small, without exception, shall be subject to the management of the State, you will have to reckon with an additional host of servants appointed to see that the State’s bidding be duly carried out. It is, unfortunately, but too true that our export trade is in a wretched plight, but this is attributable solely to the utter turning topsy-turvy of production and consumption which has taken place both here, at home, and in the neighbouring socialistic countries. ”

“ Well, gentlemen, I trust that by this time you have been able to form a pretty accurate notion of our condition as a nation of manufacturers, trades, and carriers, and that you can come to no other conclusion than that our position is an excellent one, and one which is principally due to Free Trade as its great efficient cause. ”

“ I hope I have further shown that imports, far from taking away employment, are the means of providing employment for large numbers, and that the fewer the restrictions, the larger our general commerce, and the greater our prosperity must be. ”

“ 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. ”

“ It is established, that the advantage which two countries derive from trading with each other, results from the more advantageous employment which thence arises, of the labour and capital—for shortness let us say the labour—of both jointly. The circumstances are such, that if each country confines itself to the production of one commodity, there is a greater total return to the labour of both together; and this increase of produce forms the whole of what the two countries taken together gain by the trade. ”

“ 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. ”

“ 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. ”

“ 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.
That the maxim of buying in the cheapest market and selling in the dearest, which regulates every merchant in his individual dealings, is strictly applicable as the best rule for the trade of the whole nation. [Pg 699]
That a policy founded on these principles would render the commerce of the world an interchange of mutual advantages, and diffuse an increase of wealth and enjoyments among the inhabitants of each State. ”

“ And finally, that all the benefits which would thereby accrue to the mother country, from the territorial revenue, the duties on trade, the industry and wealth for which that trade would furnish employment, and the treasures which the distribution of produce throughout Europe must bring into the mother country, would greatly exceed the highest advantages that could be calculated upon, even under the most favourable prospects, by the means of the fallen Company or a continuation of its former system. ”

“ 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. ”

“ Are we prepared for this, starting at the separate collieries, indicating how the industry is to be developed locally? Men must take their share in understanding all the relations embodied in the export side of the trade ; they must take a share even in control- ling the banking arrangements which govern the financial side of the industry, and with that comes a very great deal of responsibility. Now, are we prepared to assume that responsibility, a responsibility which is implied in the term workmen's control ? ”

“ And along with this vast aggrandizement of manufacturing industry and commerce, there has been a steady increase of both imports and exports, as well as of revenue from customs. The increase in imports has consisted of articles of luxury and raw materials for manufacture. And, as if to leave nothing wanting in the demonstration, the increase of exports has constantly included more and more of the products of agriculture. ”

“ There is no foundation for the distinction which attributes to certain employments the peculiar appellation of American industry; and it is, in my judgment, extremely unwise to attempt such discriminations.
We are asked, What nations have ever attained eminent prosperity without encouraging manufactures? I may ask, What nation ever reached the like prosperity without promoting foreign trade? ”

“ It is, therefore, necessary that it should be universally known among us, what changes of property are advantageous, or when the balance of trade is on our side; what are the products or manufactures of other countries; and how far one nation may in any species of traffick obtain or preserve superiority over another. The theory of trade is yet but little understood, and, therefore, the practice is often without real advantage to the publick; but it might be carried on with more general success, if its principles were better considered; and to excite that attention is our chief design. ”

“ The operations of trade need constant regulation and supervision; it is the business of the administrator and the legislator to provide them. But the maintenance of trade itself as the economic factor in the relationship between civilised and primitive communities, producers respectively of commodities desired by both, is synonymous with the recognition that the latter are possessed of elementary human rights. ”