Early and Growing Commerce of the United States [pp. 365-378]

EARLY AND GROWING COMMERCE OF THE UNITED STATES. 367
gree they might think it worth their while probably to hazard the loss of
the British markets, for the sake of the gain arising from the general
freedom of trade to all other parts of the world. What then may become of our British navigation, to and firom America? When that is
lost, will not all our revenues, arising from our present American imports,
be annihilated? and what will be the state of the public credit of this
nation, when such a catastrophe should ever happen?"
The statistics of American commerce, from the opening of the century
until the period of the Revolution, show a continued augmentation.
During the troubles of that period, and of those which immediately preceded, some decline was of course inevitable. In 1771 the whole exports and imports of New England, New York, Pennsylvania, Virginia,
Maryland, Carolina, and Georgia, fell but little short of $30,000,000,
having increased tenfold since the beginning of the century.
The war being closed, and an immense national debt of $42,000,000
accumulated, exclusive of state indebtedness, Congress found it absolutely necessary to provide a system of revenue adequate to the exigencies of the country. Experience had shown that impost duties could
alone be relied upon, and were in other respects the least objectionable
mode of taxation. Under the articles of federation, such duties could
only be levied by the states, who thus reserved to themselves the exclusive control over their commerce. This state of things was attended
with the most awkward and embarrassing results, and seemed likely at
once to destroy all the benefits of the independence which had just been
realized. Congress was left without a revenue, and was paralyzed.
Foreigners began to exhibit their jealousies of the growing republic, and
hostility to its commerce. Great Britain, France, Spain, Portugal, rejected all overtures to enter into treaties of commerce with us.* Some
of the states opened their trade free with all nations, thus holding out
superior encouragements to their neighbors. New York, in this manner, laid the foundation of the empire she now maintains. From the
free ports goods might be smuggled into other states. Tonnage duties
in different states varied from one to three shillings sterling the ton.
As early as 1781 Congress prayed for the power to levy a duty of
five per cent. ad-valorem, upon imports, to be continued until the payment of the debt. A further power of regulating the commerce of the
states, was moved for in the same body, and negatived there. The states
refused even to grant the duty.t In 1783 the proposition was again urgently renewed, limited to the term of twenty-five years, but was not
carried into effect.t
The darkest period was now at hand. The country, it is maintained,
was drained of specie by the extraordinary preponderance of the imports
over the exports for several years, being often as three to one in regard
to Great Britain. The interest of the debt was unpaid, public credit
gone, the debt itself considered of little value, and sold to many of its
original holders for about one tenth of its nominal value. Private credit
was also much impaired. During the war, the collection of debts was
in a great measure suspended, and on the return of peace, goods were
* Marshall's Washington, p. 5, 182. t What States refused, Seybert, p. 57.
t Pitkins, p.30.