pork, beef, butter, cheese, and other provisions, in case they depend upon foreign markets for the sale of their products, to enable them to pay for, and clothe themselves with, British and French goods. It should be borne in mind also, that more than half of the exports of the free States, are to the West Indies, Brazil and other parts of South America, to pay for sugar, coffee, spices, tropical fruits and hides. The West Indies and Brazil, furnish a constant and regular demand and steady markets for the products of the free and northern slave states, while the markets of Europe are very uncertain, and not to be depended upon. The whole commerce of the United States with the West India Islands, and with the American continent and all its islands, is advantageous, the balance of trade being slightly in favor of our country, which is paid in coin, amounting on an average to four or five millions a year, the greater part of which is exported to the old world, to pay the balance of trade against us.

The products of the free and northern Slave States exported to the West Indies, and to the American Continent and its islands, amounted in 1844 to over twenty-three millions of dollars, and in 1850 to about twenty-eight millions of dollars; in payment for which we received some coin, and many articles of prime necessity, some of which cannot be produced in the United States, and others cannot be produced in sufficient quantities, for the consumption of the country.

The imports into the United States from the old world, which were retained for consumption (consisting mostly of manufactured products) cost in 1844, about seventy millions of dollars, and in 1850 about one hundred and thirty millions, about five sixths of which were consumed in the free and the northern slave states, while the domestic products of those states, taken by the old world in payment, amounted to only about twenty-eight millions of dollars in 1844, and thirty millions in 1850. It is easy to see that such a commerce is very disadvantageous to the northern states, as it makes them not only dependent upon, and tributary to the manufacturing nations of Europe, and involves them in debt, but it also makes them dependent upon, and tributary to the cotton planting states of the south, for cotton as an article of export, to pay their debts to foreign manufacturers.

B. Small Import Trade of the South in 18551

Although the south furnished the most important articles of export, that section imported little directly from foreign nations. The money received for cotton,

1

Thirty Years' View. By Thomas H. Benton (New York, 1854-6), II, 131–3.

tobacco, and other crops was largely spent in the north for domestic manufactures or for foreign goods brought through northern ports. Senator Benton's views on the subject were as follows:

It [a convention called by the southern states] met at Augusta, Georgia, and afterwards at Charleston, South Carolina; and the evil complained of and the remedy proposed were strongly set forth in the proceedings of the body, and in addresses to the people of the Southern and Southwestern States. The changed relative condition of the two sections of the country, before and since the Union, was shown in their general relative depression or prosperity since that event, and especially in the reversed condition of their respective foreign import trade. In the colonial condition the comparison was wholly in favor of the South; under the Union wholly against it. Thus, in the year 1760 -only sixteen years before the Declaration of Independence - the foreign imports into Virginia were 850,000 sterling, and into South Carolina 555,000; while into New York they were only 189,000, into Pennsylvania 490,000; and into all the New England Colonies collectively only 561,000.

These figures exhibit an immense superiority of commercial prosperity on the side of the South in its colonial state, sadly contrasting with another set of figures exhibited by the convention to show its relative condition within a few years after the Union. Thus, in the year 1821, the imports into New York had risen to $23,000,000 being about seventy times its colonial import at about an equal period before the adoption of the constitution; and those of South Carolina stood at $3,000,000 — which, for all practical purposes, may be considered the same that they were in 1760. . . .

The conventions of August and Charleston proposed their remedy for the Southern depression, and the comparative decay of which they complained. It was a fair and patriotic remedy that of becoming their own exporters, and opening a direct trade in their own staples, between Southern and foreign ports. It was recommended — attempted - failed. Superior advantages of navigation in the North greater aptitude of its people for commerce-established course of business accumulated capital continued unequal legislation in Congress; and increasing expenditures of the government, chiefly disbursed in the North, and defect of seamen in the South (for mariners cannot be made of slaves), all combined to retain the foreign trade in the channel which had absorbed it; and the still faster increasing extravagance and profusion of the government. And now, at this period (1855), the foreign imports at New York are $195,000,000; at

Boston, $58,000,000; in Virginia $1,250,000; in South Carolina $1,750,000....

III. MOVEMENT OF FOREIGN COMMERCE

Balance of Trade, 1821-18501

In any consideration of foreign commerce the subject of balance of trade is important. When a country imports more goods than it exports the balance of trade for that country is said to be unfavorable. Any country having an excess of exports over imports, is said to have a favorable balance of trade. For various reasons the foreign trade of the United States before 1860 was unfavorable. The total value of this balance and the manner in which it was provided for have been described as follows:

Let us now compare our exports and imports, in order to learn the amount of our foreign debt, the balance of trade, and situation of the country at different periods; and to ascertain the effect of our several tariff acts, upon the prosperity of the country.

Owing to the embargo which was passed by Congress, December 22d, 1807, the various non-importation, and non-intercourse acts which followed in quick succession, and the war from June, 1812, to January, 1815, our imports were not very large, and the foreign debt of our merchants could not have been very heavy at the close of the war. Though our national debt at the close of the war was over an hundred and twenty millions of dollars, yet it was mostly owing to our own citizens and to our banking institutions; and the whole amount of debt due from our citizens and our government to Europeans, did not perhaps exceed thirty millions of dollars. But our duties on imports were so low, that immediately after the war, and during the years 1815, 1816, and 1817, our country was literally flooded with British, French, and other foreign manufactures, including cotton and woolen cloths, silks, linens, hats, boots, shoes, iron, and hardware, &c., &c., amounting in all during those three years, (as estimated in the Commercial Dictionary,) to the sum of $359,394,274; while our exports during the same period amounted to only $222,149,774. If we add 25 per cent. to our exports for freight and profits of American merchants and ship owners, they would amount to about $278,000,000, and leave a balance of trade against us during those three years, amounting to the enormous sum of $81,000,000. Our ex

1 Essays on the Progress of Nations. By Ezra C. Seaman (New York, 1852),

ports in 1818, 1819, and 1820, amounted to $232,115,323; our imports during that period are estimated at $283,325,000; and if we add 20 per cent. to our exports for freight and profits, and call our foreign debt at the close of the war $30,000,000, calculating interest upon it, our aggregate foreign debt, including American stocks held by Europeans, would amount on the 30th day of September, 1820, to about $126,000,000; perhaps sixteen millions of it was lost by the failure and bankruptcy of American merchants and importers; leaving $110,000,000, which has been paid.

All the money and products sent abroad to pay the interest on our foreign debt, and the dividends on our stocks held abroad, appear as part of our exports; and the proceeds of all loans, and moneys and effects sent here to be invested in our stocks, appear in and as a part of our imports. Foreign debt, including the amount of our stocks held by Europeans on the first day of October, 1820, exclusive of sixteen million dollars due from bankrupts, estimated at $110,000,000.

Statement in millions of dollars, of the value of imports into the United States during the undermentioned fiscal years of coin and bullion, other free goods, dutiable goods, and the amount of duties collected during each period.

The tariff act of 1832 exempted from duty all teas imported in American vessels from China and other places beyond the Cape of Good Hope, coffee, spices, fruits, nuts, gums, dyewoods, and nearly all other raw products of the torrid zone, except sugar, and reduced

the duties on manufactures of silk, to a rate of from five to ten per cent.

The compromise act of 1833 provided for a prospective periodical reduction of duties until they should be reduced after the 30th of June, 1842, to 20 per cent., added greatly to the free list, and exempted from duty nearly all the manufactures of silk, worsted, silk and worsted, linen, and laces imported from Europe after the year 1833.

Under these acts the value of the goods imported free of duty, increased immensely, as shown by the foregoing table. The manufacturers of silk worsted, silk and worsted, linen, laces, and sheeting, imported free of duty in 1839, were valued at over thirty-six million dollars. These heavy imports of articles of luxury contributed to increase the balance of trade against the country, and to involve it in debt.

The imports into the United States in 1841 exclusive of specie were valued at $122,957,544; in 1842 they amounted to only $96,075,071. Perhaps nothing but embarrassments, inability to pay promptly our foreign debts, and the interest upon them, and the low state of American credit abroad, prevented the imports in 1842 from amounting to as much as they did in 1839 and 1841. About two thirds in value of the imports then consisted, and now consist, of manufactured products and metals, the greatest part of which might and ought to be produced in the United States. The effect of the tariff of 1842 was to lessen, by means of increased duties, the importation of articles of luxury, such as silks, satins, laces, wines, and distilled spirits, as well as iron, hardware, and manufactures of cotton, wool, worsted, and linen. It contributed to promote the interest of the country in several modes. 1st. By increasing domestic industry. 2d. By turning the balance of trade in favor of the country and contributing to relieve it from foreign debts and embarrassments. 3d. By increasing the revenue, and 4th by checking luxury. The compromise act of 1833 produced opposite effects in the long run, in all these particulars, and contributed to paralyze the industry of the country, and to impoverish it. Such are the effects also of the tariff of 1846, and the longer it is continued in force the more plainly they will be developed.