Monday, August 23, 2010

Study 11 - The Federalist Papers Number 11

The Utility of the Union in Respect to Commercial Relations and a Navy

For the Independent Journal.
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 persecutors. 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. 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.'' (Philosophical Research on the Americans.'')

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