The Utility of the Union in Respect to Commercial Relations and a Navy
Independent Journal Saturday, November 24, 1787
[Alexander Hamilton]
To the People of the State of New York:
THE
importance of the Union, in a commercial light, is one of those points about
which there is least room to entertain a difference of opinion, and which has,
in fact, commanded the most general assent of men who have any acquaintance with
the subject. This applies as well to our intercourse with foreign countries as
with each other.
There are appearances to authorize a supposition that the
adventurous spirit, which distinguishes the commercial character of America, has
already excited uneasy sensations in several of the maritime powers of Europe.
They seem to be apprehensive of our too great interference in that carrying
trade, which is the support of their navigation and the foundation of their
naval strength. Those of them which have colonies in America look forward to
what this country is capable of becoming, with painful solicitude. They foresee
the dangers that may threaten their American dominions from the neighborhood of
States, which have all the dispositions, and would possess all the means,
requisite to the creation of a powerful marine. Impressions of this kind will
naturally indicate the policy of fostering divisions among us, and of depriving
us, as far as possible, of an ACTIVE COMMERCE in our own
bottoms. This would answer the threefold purpose of preventing our interference
in their navigation, of monopolizing the profits of our trade, and of clipping
the wings by which we might soar to a dangerous greatness. Did not prudence
forbid the detail, it would not be difficult to trace, by facts, the workings of
this policy to the cabinets of ministers.
If we continue united, we may counteract a policy so
unfriendly to our prosperity in a variety of ways. By prohibitory regulations,
extending, at the same time, throughout the States, we may oblige foreign
countries to bid against each other, for the privileges of our markets. This
assertion will not appear chimerical to those who are able to appreciate the
importance of the markets of three millions of people -- increasing in rapid
progression, for the most part exclusively addicted to agriculture, and likely
from local circumstances to remain so -- to any manufacturing nation; and the
immense difference there would be to the trade and navigation of such a nation,
between a direct communication in its own ships, and an indirect conveyance of
its products and returns, to and from America, in the ships of another country.
Suppose, for instance, we had a government in America, capable of excluding
Great Britain (with whom we have at present no treaty of commerce) from all our
ports; what would be the probable operation of this step upon her politics?
Would it not enable us to negotiate, with the fairest prospect of success, for
commercial privileges of the most valuable and extensive kind, in the dominions
of that kingdom? When these questions have been asked, upon other occasions,
they have received a plausible, but not a solid or satisfactory answer. It has
been said that prohibitions on our part would produce no change in the system of
Britain, because she could prosecute her trade with us through the medium of the
Dutch, who would be her immediate customers and paymasters for those articles
which were wanted for the supply of our markets. But would not her navigation be
materially injured by the loss of the important advantage of being her own
carrier in that trade? Would not the principal part of its profits be
intercepted by the Dutch, as a compensation for their agency and risk? Would not
the mere circumstance of freight occasion a considerable deduction? Would not so
circuitous an intercourse facilitate the competitions of other nations, by
enhancing the price of British commodities in our markets, and by transferring
to other hands the management of this interesting branch of the British
commerce?
A mature consideration of the objects suggested by these
questions will justify a belief that the real disadvantages to Britain from such
a state of things, conspiring with the pre-possessions of a great part of the
nation in favor of the American trade, and with the importunities of the West
India islands, would produce a relaxation in her present system, and would let
us into the enjoyment of privileges in the markets of those islands elsewhere,
from which our trade would derive the most substantial benefits. Such a point
gained from the British government, and which could not be expected without an
equivalent in exemptions and immunities in our markets, would be likely to have
a correspondent effect on the conduct of other nations, who would not be
inclined to see themselves altogether supplanted in our trade.
A further resource for influencing the conduct of European
nations toward us, in this respect, would arise from the establishment of a
federal navy. There can be no doubt that the continuance of the Union under an
efficient government would put it in our power, at a period not very distant, to
create a navy which, if it could not vie with those of the great maritime
powers, would at least be of respectable weight if thrown into the scale of
either of two contending parties. This would be more peculiarly the case in
relation to operations in the West Indies. A few ships of the line, sent
opportunely to the reinforcement of either side, would often be sufficient to
decide the fate of a campaign, on the event of which interests of the greatest
magnitude were suspended. Our position is, in this respect, a most commanding
one. And if to this consideration we add that of the usefulness of supplies from
this country, in the prosecution of military operations in the West Indies, it
will readily be perceived that a situation so favorable would enable us to
bargain with great advantage for commercial privileges. A price would be set not
only upon our friendship, but upon our neutrality. By a steady adherence to the
Union we may hope, erelong, to become the arbiter of Europe in America, and to
be able to incline the balance of European competitions in this part of the
world as our interest may dictate.
But in the reverse of this eligible situation, we shall
discover that the rivalships of the parts would make them checks upon each
other, and would frustrate all the tempting advantages which nature has kindly
placed within our reach. In a state so insignificant our commerce would be a
prey to the wanton intermeddlings of all nations at war with each other; who,
having nothing to fear from us, would with little scruple or remorse, supply
their wants by depredations on our property as often as it fell in their way.
The rights of neutrality will only be respected when they are defended by an
adequate power. A nation, despicable by its weakness, forfeits even the
privilege of being neutral.
Under a vigorous national government, the natural strength
and resources of the country, directed to a common interest, would baffle all
the combinations of European jealousy to restrain our growth. This situation
would even take away the motive to such combinations, by inducing an
impracticability of success. An active commerce, an extensive navigation, and a
flourishing marine would then be the offspring of moral and physical necessity.
We might defy the little arts of the little politicians to control or vary the
irresistible and unchangeable course of nature.
But in a state of disunion, these combinations might exist
and might operate with success. It would be in the power of the maritime
nations, availing themselves of our universal impotence, to prescribe the
conditions of our political existence; and as they have a common interest in
being our carriers, and still more in preventing our becoming theirs, they would
in all probability combine to embarrass our navigation in such a manner as would
in effect destroy it, and confine us to a PASSIVE COMMERCE.
We should then be compelled to content ourselves with the first price of our
commodities, and to see the profits of our trade snatched from us to enrich our
enemies and p rsecutors. That unequaled spirit of enterprise, which signalizes
the genius of the American merchants and navigators, and which is in itself an
inexhaustible mine of national wealth, would be stifled and lost, and poverty
and disgrace would overspread a country which, with wisdom, might make herself
the admiration and envy of the world.
There are rights of great moment to the trade of America
which are rights of the Union -- I allude to the fisheries, to the navigation of
the Western lakes, and to that of the Mississippi. The dissolution of the
Confederacy would give room for delicate questions concerning the future
existence of these rights; which the interest of more powerful partners would
hardly fail to solve to our disadvantage. The disposition of Spain with regard
to the Mississippi needs no comment. France and Britain are concerned with us in
the fisheries, and view them as of the utmost moment to their navigation. They,
of course, would hardly remain long indifferent to that decided mastery, of
which experience has shown us to be possessed in this valuable branch of
traffic, and by which we are able to undersell those nations in their own
markets. What more natural than that they should be disposed to exclude from the
lists such dangerous competitors?
This branch of trade ought not to be considered as a
partial benefit. All the navigating States may, in different degrees,
advantageously participate in it, and under circumstances of a greater extension
of mercantile capital, would not be unlikely to do it. As a nursery of seamen,
it now is, or when time shall have more nearly assimilated the principles of
navigation in the several States, will become, a universal resource. To the
establishment of a navy, it must be indispensable.
To this great national object, a NAVY,
union will contribute in various ways. Every institution will grow and flourish
in proportion to the quantity and extent of the means concentred towards its
formation and support. A navy of the United States, as it would embrace the
resources of all, is an object far less remote than a navy of any single State
or partial confederacy, which would only embrace the resources of a single part.
It happens, indeed, that different portions of confederated America possess each
some peculiar advantage for this essential establishment. The more southern
States furnish in greater abundance certain kinds of naval stores -- tar, pitch,
and turpentine. Their wood for the construction of ships is also of a more solid
and lasting texture. The difference in the duration of the ships of which the
navy might be composed, if chiefly constructed of Southern wood, would be of
signal importance, either in the view of naval strength or of national economy.
Some of the Southern and of the Middle States yield a greater plenty of iron,
and of better quality. Seamen must chiefly be drawn from the Northern hive. The
necessity of naval protection to external or maritime commerce does not require
a particular elucidation, no more than the conduciveness of that species of
commerce to the prosperity of a navy.
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. Commercial enterprise will have
much greater scope, from the diversity in the productions of different States.
When the staple of one fails from a bad harvest or unproductive crop, it can
call to its aid the staple of another. The variety, not less than the value, of
products for exportation contributes to the activity of foreign commerce. It can
be conducted upon much better terms with a large number of materials of a given
value than with a small number of materials of the same value; arising from the
competitions of trade and from the fluctations of markets. Particular articles
may be in great demand at certain periods, and unsalable at others; but if there
be a variety of articles, it can scarcely happen that they should all be at one
time in the latter predicament, and on this account the operations of the
merchant would be less liable to any considerable obstruction or stagnation. The
speculative trader will at once perceive the force of these observations, and
will acknowledge that the aggregate balance of the commerce of the United States
would bid fair to be much more favorable than that of the thirteen States
without union or with partial unions.
It may perhaps be replied to this, that whether the
States are united or disunited, there would still be an intimate intercourse
between them which would answer the same ends; this intercourse would be
fettered, interrupted, and narrowed by a multiplicity of causes, which in the
course of these papers have been amply detailed. A unity of commercial, as well
as political, interests, can only result from a unity of government.
There are other points of view in which this subject
might be placed, of a striking and animating kind. But they would lead us too
far into the regions of futurity, and would involve topics not proper for a
newspaper discussion. I shall briefly observe, that our situation invites and
our interests prompt us to aim at an ascendant in the system of American
affairs. The world may politically, as well as geographically, be divided into
four parts, each having a distinct set of interests. Unhappily for the other
three, Europe, by her arms and by her negotiations, by force and by fraud, has,
in different degrees, extended her dominion over them all. Africa, Asia, and
America, have successively felt her domination. The superiority she has long
maintained has tempted her to plume herself as the Mistress of the World, and to
consider the rest of mankind as created for her benefit. Men admired as profound
philosophers have, in direct terms, attributed to her inhabitants a physical
superiority, and have gravely asserted that all animals, and with them the human
species, degenerate in America -- that even dogs cease to bark after having
breathed awhile in our atmosphere.1
Facts have too long supported these arrogant pretensions of the Europeans. It
belongs to us to vindicate the honor of the human race, and to teach that
assuming brother, moderation. Union will enable us to do it. Disunion will will
add another victim to his triumphs. Let Americans disdain to be the instruments
of European greatness! Let the thirteen States, bound together in a strict and
indissoluble Union, concur in erecting one great American system, superior to
the control of all transatlantic force or influence, and able to dictate the
terms of the connection between the old and the new world!
PUBLIUS
-
Recherches philosophiques sur
les Americains."
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