NUMBER I.

DISPASSIONATE enquiries concerning the public interests, are attended [...]ith salutary effects, in every time and in every nation. In a country like that, which we inhabit, such examinations are unusually interesting, and may be rendered, it is believed, peculiarly beneficial.

To create the disposition requisite to the proper acceptation of such disqui­sitions, it is necessary to call to the public mind the variant characters of the several states when they were provinces of a more extended empire—the causes which produced that difference of character—the means which were devised to increase and perpetuate that variation and the ends to which those characteristic differences were intended to be instrumental. Reflexions duly serious upon these circumstances will remind the people of the several states, that they are natural friends, whose amity and union have been too often viewed with jealousy by rival eyes. They will perceive the wisdom and the high duty of cultivating a spirit of mutual allowance and concession; and a careful examination of their actual situa­tion will convince them, that greater blessings will result from a perfect under­standing, and sedulous cultivation of their interests at home, than from almost any arrangements, which the conceptions of foreign nations will probably lead them to propose.

The consideration of our present situation and of some interesting circum­stances which have grown out of it, is the object of this investigation, in which the benefits to be derived from a liberal intercourse with foreign na­tions will not be undervalued. As no apology is necessary for such an endea­vour, a miscellaneous enquiry into several matters, which are always deeply inte­resting to nations, and into others which have resulted from our public operations, will be prosecuted without further introduction.

Concerning the exports of the united states.

It has been apprehended by persons of observation, at home, and the idea has prevailed in the councils of a foreign nation ^*, that the exports of the united states for the year preceding October, 1790, were greater in value than could be expected again, by reason of the prices for grain which were consequent on [Page 4]the scarcity in France. The exports of the subsequent year will aid us in te [...]ing this opinion, which attracts the more attention, because it is sometimes suggested that agriculture and trade have been injured by the measures of the government in regard to the public debt. The first return of exports, on which this conjecture was founded, includes a term of thirteen months and a half, and amounted to 20,415,966 dollars. From this aggregate value a ninth part is to be deducted, to equalize it with one year's exportation, which reduces the sum to 18,147,526 dollars. It is very well known, that the prices of our produce through the year lately returned, and which ended with September 1791, had [...]llen to their an­tecedent rates, and it will be perceived on a comparison, that our exports ex­ceeded in their aggregate value those of the former year. The last return, ex­clusively of two quarters of Charleston, was

There remains not, therefore, the least cause to doubt, that our total expor­tations were eighteen millions and a quarter, and consequently more than in the antecedent year. It is to be observed, too, that the high prices which were current through the time of the first return, must have produced an exportation of all the grain, that could be got to market, and none of the old crop could have been left as usual, to sell with the new. The obvious effect of this must have been an unusual deduction from the exports in the last year. The valuation of the exports of these states immediately before the revolution is not p [...]ly ascertained: but the whole exportations from N. America, including the remain­ing colonies, Newfoundland, Bermuda, and the Bahamas, were computed to have been in 1771▪ dollars, 15,280,000. In these were comprised the shipments between those islands and the main, and from province to province, as every vessel, which departed from one American port for another, was obliged to clear out her cargo, as if destined for a foreign country. It will appear to be safe to sub­tract for the difference produced by these two circumstances, one half of the former exports, when it is remembered that two-thirds of the quantity of tonnage is em­ployed in the intercourse between the various parts of the present union, which is engaged in that with foreign nations; and that the British Newfoundland fishery alone, was estimated at more than 2,200,000 dollars in 1775. The increase of the tonnage employed in the foreign trade affords another proof of the increment of our exports. About 330,000 tons were laden in the present united states in the year 1770, part of which were destined for ports now within the union. About 600,000 tons have been loaded in each of the two last years for foreign ports, though our exports being in a much greater degree manufactured, are now contained in a smaller compass: and boards, scantling, and staves, which are our most bulky commodities, have not increased in half the ratio of the tonnage employed.

An addition may be also made to the amount of the return for the increased supplies in provisions, cordage, and other materials, for the use and outfit of foreign ships. Since the prices of salt provisions have been reduced below those of Ireland, and many articles applicable to ships' use, have been manufactured here, this item has become very considerable; and so far as the articles are sold to foreigners, they are essentially exports.

Under this head, the increased number of ships sold to foreign nations, may be fairly mentioned, and although much has been said of the number formerly disposed of abroad, it is not doubted that a greater value was sold in that way in the time of the last return. Of this fact some further illustration will probably be given in the sequel. It will be sufficient to observe here, that the whole quantity [Page 5]of tonnage built, and native vessels repaired the last year, exceed in value one million of dollars.

The enlarged consumption made within our country by foreign persons of every description, who are certainly much more numerous than they formerly were, is as profitable to the country, as the same value in exports would have been. This item will appear to be very considerable, when the expenditures of foreign ministers, consuls, transient and resident foreigners, fleets and seamen, mind.

The export trade of the united states and the great increase of the home con­sumption have placed the American producers on a very advantageous footing. The competition which exists in our markets, between the purchasers for the ac­count of foreigner, of various nations, for our own merchants, for the great con­sumption in the seaports and parts adjacent to the coasts, and for the use of the ma­nufacturers, together with the occasional shipments made on their own accounts by the southern planters, by the millers of the middle states, and by the owners of the eastern fishing vessels, afford the cultivators and fishermen so many alter­natives, that they can always obtain the best prices which circumstances will justify. In short, these several demands, at once various, steady, and extensive, efficiently support our agriculture: and though peculiar enterprize and faculties in commerce and manufactures, the power of capital, and an intimate know­ledge of our trade and interior system, enable a particular nation to participate largely in the exports of the united states, the remainder of the world receive from us a very considerable value, and the variety of demand which the desti­nation of our exports proves to exist, affords us certain relief from the conse­quences of the commercial errors of any of those countries, whose citizens are our consumers. Whenever such errors shall occur—or so far as they may have already taken place, to diffuse a knowledge of our resources among all nations, to inspire them with confidence in our laws and modes of dealing, and to con­vert our commodities by manufactures, into every shape which their occasions may require, will prove the efficacious corrective, by enabling us to obtain from wise nations a favourable market for our productions.

It is satisfactory to observe the regular increase of manufactured goods in our returns of exported commodities. The number in each of the two last years is upwards of one third, in a list which amounts to near three hundred article. Hence we may infer, that the time is really arrived, when foreign trade is increased and enlivened by home manufactures. This idea, together with the domestic commerce produced by them, will be more particularly no­ticed in another place.

Concerning the manufactures of the united states.

In considering this subject it will be unnecessary to adduce any arguments to influence the judgment of the eastern parts of the union. Many of our citizens near the sea-coast of the middle states are equally convinced of the beneficial effects of manufactures. The cultivators in the southern and western country, and a respectable proportion of our mercantile citizens are apprehensive of in­jury to themselves and to their country from the pursuit of this object. These are two descriptions of persons whom it is in every view our duty to satisfy, if the truth and reason will permit; and it is principally from a due attention to them, that the subject i [...] proposed to be examined here.

An opinion has prevailed that the southern states will be sacrificed to the eastern, and in some degree to the middle states, by the plan of manufactures. It is plain, however, that as the soil of the eastern states is not equal to the production of a sufficiency of provisions and raw materials for their own use, they must resort to the more southern states for several raw materials and for new supplies of provisions. It is known, too, that some valuable articles for ma­nufactures [Page 6]cannot be produced but in the southern states, such as cotton, and indigo, and that tobacco is almost confined to them. The southern states and western country will have considerable advantages in the support which the home market of the manufacturers will give at all times, and especially in time of war, (when freights will be high, and shipping scarce) to their agricultural and land­ed productions. Even now, in profound peace, it is the case. Hemp was deli­vered in the ports of the middle states, from the lands of the southern states, at less than five cents per lb. in 1791. Nothing would have kept it up to that rate, but the rope and twine manufactories of the middle and eastern states. The breweries of Philadelphia draw nearly as much of their barley from the Chesa­peak as they derive from the lands of Pennsylvania. These and other facts show the beneficial beginning of things. The manufacturers of ships and cordage throughout the unio [...] procure from the southern states all their tar, pitch, tur­pentine, oil of turpentine, and rosin. The ports of Philadelphia and New York, take three-fourths of their ship timber from them, justly preferring vessels of live oak and red cedar to all others. The owners of the coal mines of Virginia, enjoy the monopoly of all the supplies for the manufacturers of the more northern states, who live in the sea ports: a demand which is increasing rapidly. No lead mine of any consequence is yet worked, except one near the superior waters of James river. The southern states abound with iron, and have much more fuel of all kinds than the northern states, and they have streams for the most power­ful water works. Few or no very abundant deposits of coal have been yet disco­vered further north or east than the waters of the Ohio and Chesapeak, even in internal situations. The iron manufactures of the united states are already im­portant in value, and immensely so in point of utility, or rather of necessity. Farms, manufactories, shipping, fisheries, fleets, and armies, all demand them. In short, the all-important landed interest would languish, and its progress in prosperity would be retarded in the counties of the southern states, even near the sea, if our present manufactures were to be abolished, and all future esta­blishments of that kind were to be given up. But their inland and western coun­ties cannot be supported, unless manufactures shall be promoted and introduced a­mong them. In the counties of Pennsylvania beyond the Allegany mountain, are 63,000 inhabitants, and probably 10,000 of these are farmers. The wool of that country is yet very inconsiderable—their furs are more abundant. From these two raw materials, no less than 10,140 wool hats, and 2,200 fur hats are manufactured yearly in thirty-three hatters' shops. Sail cloth, (which, when manufactured, would be worth 30 cents per lb.) could be made at Pittsburg, Winchester in Virginia, Hillsborough, and Salisbury in North Carolina, Camden in South Carolina, and Augusta in Georgia, out of hemp, the value of which, there, does not exceed 4 or 5 cents. To bring a ton of hemp to the sea ports from those towns, except Augusta, costs from 35 to 40 per cent. of its va­lue. To bring a ten weight of sail cloth from the same places to the same ports would not cost above 6 or 8 per cent. and the manufacturers' provisions and fuel are attended with similar savings. Deduct for a moment the demand of fo­reign commerce from both Alexandria and Winchester, and the latter would appear to be most vigorous and flourishing; because it manufactures more, having not so high a market for its provisions and raw materials. These obser­vations apply with equal force to the whole state of Vermont and to all our interior country. The nation that supplies us with hempen, flaxen, and iron ma­nufactures, takes immense quantities of hemp, flax, and iron from Russia. These Russian raw materials are purchased at the eastern extremity of the Baltic, are transported to another country and manufactured there, are brought [...]ther, and haled through bad roads, 50, 10, 200, and 300 miles into our most pro­ductive counties, which yield the requisite raw materials. These facts power­fully [Page 7]incite us to foster manufactures of the same kinds, there and elsewhere. Till that shall be the case, we shall continue to drag those raw materials through the same bad roads, and ship them under charges of carting and freight equal to a third, an half, and two thirds of their value, according to the distance. The present system of neglecting and repelling the establishment of manufactures, ap­pears to occasion immense deductions from the profits of our lands; and due consideration, it is believed, would convince us, that the best interests, nay the necessities of our landholders require the introduction of some kind of manu­factory in almost every vicinity.

The countries south of Pennsylvania are remarkably rich in fossils. Coal, cop­per, iron, lead, and other minerals are found in either Maryland, Virginia, North or South Carolina, or Georgia, or all of them. Mineral appearances occur every­where. The promotion of manufactures is necessary to draw these forth; and as they have immense forests of wood, and the most powerful mill-streams, there can be no doubt, that they will be brought into use, as soon as those means shall be adopted.

The family manufactures of the middle and interior counties of Virginia, North Carolina, and the interior counties of Georgia, South Carolina, and Ma­ryland are said to be greater in value, than the articles of foreign manufactures, which they use; and were they universally awake to the facility, profits, and national importance of this mode of manufacturing, they might extend it much further, without impeding their farming operations, while, at the same time, they would provide a new use for their agricultural productions.

A single state, Pennsylvania, has upwards of fifty paper mills, which work up materials of no value. The manufactures from those mills are computed at two hundred and fifty thousand dollars—the hands employed in them do not exceed one hundred and fifty, or two hundred. That state contains about one ninth of the people of the united states, and their contributions to the expenses of the government and the interest of the public debt, are consequently about 400,000 dollars. Their paper-mills, therefore, indemnify them for five-eights of their quota! It is the duty of government to encourage the other states to do the same, especially as it can be done by water-means, and not by men diverted from their farms. The southern states do not want a capacity for this manufac­ture, which has acquired an establishment in Maryland, and has appeared as far to the southward as North Carolina.

It may be safely affirmed, that the manufactures of leather in the united states exceed in value all our annual burdens. We import few or no shoes. In each of the two last years we have procured from abroad no more than 70,000 pair of shoes and boots for 4,000,000 of people. If we use only one pai [...] and a half per annum per person, at seventy-five cents, they will amount to 4,500,000 dollars, which exceeds every demand of the general and state governments. The hides, skins, bark, lime, thread, bristles, and wax, nay, the very heel-pegs, are all drawn from our lands and farms. Recollecting this, and similar facts, we cannot question the utility of manufactures to the farmers, planters, and landed interest. If the manufacture of shoes in this country, were abolished, our annual debt to foreign countries would be increased to an amount equal to all our public contributions. Similar observations might be made on several other articles, though on none to so great an extent. Cattle thrive with little attention in the mild winters of the south, and being more woody, they have a greater quantity of bark than most of the other states.

The manufactures of wool in Great Britain have been stated by their ministers at £. 16,800,000 sterling—and the simple manufactures of liquors in that country are said to consume twenty-five millions of bushels of grain. Were there no other proofs, we could not doubt the importance of manufacture, to [Page 8]the agriculture of that country. They nourish and support it. We make up all our wool—our lands produce cotton with great facility; and we manufacture liquors as easily as Britain. There is no doubt, that the latter branch already affords to our farmers an annual market for 1,0,000 bushels of grain. This manufacture is well understood and carried on in all the southern states.

The objection, that manufactures take the people from agriculture, is not so­lid, as elsewhere observed; since women, children, horses, water, and fire, all work at manufactures, and perform four-fifths of the labour; and as many manufacturers migrate to the united states, it may be fairly questioned, whe­ther the quantity of agricultural industry is not increased by the impulse and demand a [...]sing from manufactures, though a few cultivators should follow them. And it may be asked, whether a farmer does not r [...]ise the more cotton, flax, hemp, and wool, because his wife and daughters spin and weave them, or because a water-work spins for them?

The employment of the new medium, the public certificates (which may be taken at £. 15,000,000 sterling) in a country that formerly had no. £ 3,000,000 sterling of medium, renders manufactures necessary at the time. It may be said, lands will employ it. But farms sold well at the time when £. 3,000,000 sterling was probably the utmost ext [...]nt of our medium, and cannot therefore give employment to the additional [...]ve millions, though they might to a part of it. The first application of this [...]api [...]al is intended to be made to the manu­facturing of cotton, which is pecun [...]ar [...] to the southern state. This is one method by which those states will be benefited by even that part of the [...] he debt, which they do not own. On this important point more will be [...]aid ne [...] after.

More money is employed in manufacture [...], than in foreign commerce, be­cause the gross value of [...]xported articles is much less than the gross value of manufactured articl [...]. Th [...] will not be doubted, when it is tem [...]bered, that shoes alone amount to several mi [...]ons of dol [...]ars. These manufactures cannot the [...]efore be deemed less important to the southern [...]an [...]h [...]lders than foreign commerce; and [...]pose pr [...]p [...]eto [...]s will not be disposed to neglect foreign com­merce, nor will they consider it as irrelative to their local interests.

NUMBER II. Concerning the manufactures of the united states.

IN pursuing the consideration of American manufactures as beneficial and necessary to the southern states, it will be useful to take a cursory view of the indications of attachment and disposition to them, which are discovera­ble in that quarter.

Virginia appears to be making a greater progress in merchant mills than any state in the union, though some are yet far before her in those beneficial works. Maryland and Delaware which are in the southern moiety, are second only to Pennsylvania in this branch. There is little doubt that more pig and bar iron is made to the southward of Pennsylania, than to the northward of it. A lead mine has been opened in Virginia which is extending its supplies through the union, and promises fair to be commensurate with the present demand: and there is one, which is now worked, in the territory south of the Ohio. But no lead mines are in considerable operation in the states north or east of Virginia, though a small beginning upon one in the western parts of Pennsylvania is made. An association in Virginia, another in the territory south of the Ohio, and a company in the western district of South Carolina, have provided themselves with carding and spinning machinery on the British plan, to manufacture their native cotton. The planters in the southern states raise quantities of this raw material, unthought of before the war, and until the discussions of the subject of manufactures, which took place after the treaty of peace. The family manufactures in cotton are much greater in the four southernmost states, than in the four eastern states. There are not wanting considerable numbers of sheep in the five southern states, yet by the two re­turns of exports, it appears that no wool has been sent from thence to foreign markets. It has been common to receive wool in Pennsylvania from the eastern states, though they manufacture so much, but it is not known that any is ever received there for sale from the southern states. Wool has been transported to Salem in North Carolina, and to Winchester in Virginia, from the city of Phi­ladelphia, for the hat manufactory.

There has been full as great a current of emigration of flour millers, black­smiths, tanners, hatters, cabinet-makers, distillers, coopers, &c. to the southern states from those north of them, in proportion to numbers as of farmers; so that the workshops of the middle and northern states yield a double benefit to their fellow citizens in the south, in supplying them with manufactures, and artizans.

There is greater variety in distillation in the four southern states than in the four eastern—that is, the manufactory is established on a broader basis. It is also more certain in the south than in the north. In the latter, melasses is the principal ingredient and being from an external source, may be lost to the eastern distillers. Their manufactory is even now at hazard, unless they re­sort to the grain of the country to the southward of them. But in the south­ern states they manufacture spirits from melaises, peaches, apples, several kinds of grain, and probably will, as their country is cleared, extend it to the grape. This has been tried with success in the experimental way, at Galliopolis, near the Scioto.

The legislature of North Carolina made a loan of money since the late war to assist introduction of the paper manufactory.

An association, containing forty of the most respectable planters and far­mers, in the western district of South Carolina, has been established within a [Page 10]few years for the promotion of manufactures, and agriculture. A subscription to the amount of about 25,000 dollars has been made in the territory south of the Ohio for the purpose of carrying on the cotton manufactory. An indication of zeal not equalled in any middle or northern state, considering that the whole population of the government is 30,000 whites, and 5,000 blacks.

The preparation of tar, pitch, turpentine, spirits of turpentine, and rosin, in North Carolina and its vicinity, may be deemed a manufacture as justly as the making of linseed oil, potash, or ordinary tanning. A very small quan­tity indeed, of these articles, will be made in the states north of Virginia, [...]se nature forbals; but they will, from obvious reasons, increase in the south.

During the existance of the state impost laws, two of the southern states (Maryland and Virginia) imposed extra tonnage, not only upon foreign ships, put upon those of the other states, by which they evinced a strong disposition to encourage the manufacture of ships. The same two states laid duties on the importation of spirits manufactured in the other parts of the union.

The state of Maryland imposed considerable protecting duties to encourage their own manufactures. The legislature of Maryland have encouraged the glass manufactory in that state by a considerable loan. That of Virginia passed a special act since the peace, to encourage the manufactory of snuff and tobacco.

There are more factories of cordage and cables in two of the southern states, Maryland and Virginia, than in any two of the states of New Jersey, New York, Connecticut, and New Hampshire. Virginia laid a duty of two-thirds of a dollar on cordage by her state impost law.

The important manufactory of ships has become greater in each of the three states of Maryland, Virginia, and North Carolina, than it now is in New Hampshire. The southern state of Maryland manufactured in 1790 as many vessels as any two of the northern states of New York, Connecticut, and Rhode Island.

The paper-mill in the united states, which is most remote from the sea, is to be found in the town of Salem, in North Carolina, three hundred miles from the sea. No such manufactu [...]es as those of that vill [...]ge (a Moravian settlement) in the southern state of North Carolina, exist in any part of the union north of Maryland, equally remote from the sea.

There is one scene only, in the Atlantic counties, in which coal, iron, and waterfalls are found together in abundance. That scene, is therefore, peculiarly qualified for the iron branch of manufactures. The city of Richmond on the banks of James river, in Virginia, which is the place contemplated, may be considered in a permanent view as having an incontestable natural advantage over any more northern seaport in this interesting branch. How profitable would it be to Virginia, were all her pig and bar iron passed under the tilt hammers or through the rolling and slitting mills which might be erected at that place.

Some of the produce of the fisheries, as before observed, are to be deemed manufactures. The he [...]ing and shad (or river and bay) fisheries, south of Pennsylvania are very considerable. A barrel of herrings is worth, on a me­dium at the fishing places, 250 cents. The manufactu [...]e of the cask, the p [...]ck­ing, curing, making pickle, and trimming, amount to more than one fourth of the sum or twenty five per centum. The cask and manu [...]acturing of distil­led spirits from [...]l [...]sses, does not amount to more than one sixth of the va [...]ue of the commodity, [...] 6 2/8 per cent. A barrel of pickled fish of the southern states may be therefore as just [...] deemed a manufacture, as a cast of country rum. A similar comparison might be made between this article and several other sim­ple [Page 11]manufactures of the middle and eastern parts of the union. It is not intend­ed to discuss the propriety of granting bounties, but if they were deemed pro­per grants, there are points of view in which the southern states would ap­pear to have a greater interest in them, th [...]n the eastern states.

1st. As the southern states cultivate a greater variety of raw articles—and are capable of producing a much larger quantity of them, all that extensive class of bounties, which are resolvable into an encouragement to the growth of the raw material, will be much more beneficial to them, than to the eastern states, which are more limited both in the kinds and quantities they can bring forward for the bounty.

2dly. The southern states having extensive and very rich interior and wes­tern counti [...]s, far from navigable rivers, (which the eastern have not) and the productions of those scenes being liable to a long and expensive land carriage, the bounty would soon be found to enable them to bring the simple manufactures and raw materials to the markets on the sea coasts, which they would not, without the bounty, attempt to transport. This will not be deemed a mere sug­gestion of ingenuity, when it is remembered that the British and Irish give bounties on their fabrics, and even on the bulky articles of flour, grain, and biscuit, to enable the exporter to deliver them with advantage in foreign mar­kets.

It is an obvious truth, that every thing is more valuable in proportion to the number and extent of its uses, or the purposes to which it can be advantageous­ly applied. Flax, hemp, wool, silk, cotton, indigo, tobacco, hides, iron, wood, grain, and cattle, are valuable, where they are wanted merely as exports; but they manifestly acquire a new value, when wanted to employ, accommodate or nourish man [...]facturers. In places from whence those articles cannot be export­ed, without a great expense of transportation, it is very desirable to give them this second use but in situations too interior to be affected by the demand for exportation, and where of course they are not required for the purposes of ex­ternal commerce, this new use must be created for them, or they will not be pro­duced, and agriculture will consequently languish. This view of the subject sug­gests the indispensable necessity of manufactures to the prosperity of the interior and western country as before intimated. Nor will these ideas appear, on examina­tion, to be merely plausible conjectures. They are no less supported by the state of things, than by probability and reason. The towns of Washington, Pitts­burg, Bedford, and Huntingdon, in Pennsylvania, (the nearest of which is 150 miles from a sea port, exhibit the strongest proofs, that manufactures are the best support of the interior landed interest, and are necessary at once to the ac­commodation and prosperity of the cultivators of the middle and western coun­try. The following table contains an account of the population of those vil­lages, which is not exagerated.

It appears from this table, that in those county towns (or seats of justice) in the interior and western parts of Pennsylvania, the necessity for manufactures has occasioned a little congregation of artizans, in the proportion of twenty-se­ven parts in one hundred, of the whole village in the smallest instance, and in the proportion of thirty-seven parts in one hundred, in the largest. The town of Washington, which is the most remote, and is beyond the Ohio, has been created since the late war. Its distance is about 300 miles west of Philadelphia. The variety of its manufactures is striking, and it may he safely affirmed, that at the seats of justice, in the counties of Delaware, Bucks, Chester, and Mont­gomery, which are nearest to Philadelphia, as great a number of manufacturers, in proportion to their respective population, does not exist, though the family manufactures are more considerable in these, and though they have numerous tanneries, iron works, powder mills, paper mills, blacksmiths, hatters, shoema­kers, weavers, and other valuable workmen, in their villages and scattered throughout their populous townships. This, however, is the case, in some de­gree, likewise in the townships of the western scene above described.

In the midland counties of Pennsylvania, manufactures have resulted from a flourishing agriculture, and, immediately on their birth, have contributed to the prosperity of the cultivators. The borough of Lancaster, which is the largest inland town in the united states, is sixty-six miles from a seaport, and ten from any practised boat navigation. The number of families was in 1786, about 700, of whom 234 were manufacturers. The following is the list of them. Fourteen hatters, thirty-six shoemakers, four tanners, seventeen saddlers, twen­ty-five tailors, twenty-five weavers of woolen, linen, and cotton cloth, three stocking weavers, twenty-five white and black smiths, six wheelwrights, eleven [...]pers, six clock and watchmakers, six tobacco and snuff manufacturers, four [Page 13]dyers, seven gun smiths, five rope makers, four tinners, two brass founders, three skin dressers, one brush maker, seven turners, seven nail makers, five sil­ver smiths, three potters, three brewers, three coppersmiths, and two printers in English and German. There were in 1786, also within thirty-nine miles of the town, seventeen furnaces, forges, rolling mills and slitting mills, and within ten miles of it eighteen corn mills, sixteen saw mills, one fulling mill, four oil mills, five hemp mills, two boreing and grinding mills for gun barrels, and eight tanneries. The increase since 1786, must have been very considerable; for the attention of the united states has been very much turned to manufactures since the year 1787. It may be safely affirmed, that the counties of Lancaster (in which the borough is) York and Berks are the most vigorous in Pennsylvania, perhaps in the union, and that there are none in the state in which there are more manufactures, is beyond all question. They are all fifty miles or more, from the nearest seaport. Information through several channels, affords the greatest reason to believe, that the interior of Frederick and Elizabeth towns in Maryland, Stanton in Vir­ginia, Lexington in Kentucky and other towns in the southern states, would prove on examination, similar to those of Pennsylvania, and that the improvements in necessary manufactures are as visible and as rapid, as those in agriculture ^*.

[Page 14] The reflexions arising from these facts are highly satisfactory, and as they open new and extended views of the resources and capacities o [...] the united states they must increase the prevalent disposition of the people to improve the interior economy of our country. It is devoutly hoped that they may al [...] contribute to re­move the apprehensions of our southern and western fello [...] citizens, in regard to unjust sacrifices of their interests to those of their brethren in other quarters, and that they may lead to such further examinations as will finally evince those immense direct and indirect benefits from American manufactures, which are sincerely believed to pervade the whole u [...]on.

Concerning the manufactures of the united states, as they affect the mercantile in­terest.

Many of the ship holders and merchants trading with foreign countries, suppose, but it is believed erroneously, that they have no interest in the promotion of ma­nufactures. It is known that Great Britain with seventy millions of acrea of cultivated land, ships fourteen millions (her whole exports being near twenty millions, in h [...]r own manufactures. The foreign trade of that kingdom, without manufactures, would manifestly be neither so great nor so various—for the va­lue of the produce manufactured is increased from one hundred to ten hundred per cent, as is also that of the imported raw materials, which constitute a great portion of their trade. The foreign commerce of the united states, is already enli­vened by manufactures. Ships, boats, oars, and handspikes, bar [...]i [...]on, steel, nailrods, carriages of all kinds, hats, shoes, cordage, candles, soap, oils of several kinds, starch, hair powder, distilled spir [...]ts, malt liquors, cabinet w [...]e, plate, puncheon packs, gunpowder, potashes, brick [...], chocolate, mustard, tow [...]inens, sail cloth, potter's ware, sadlery and harn [...]ss, wool and cotton cards, paper and paper hang­ings, tanned leather, books, snuff, manufactured tobacco, and iron manofactures are now frequently exported to foreign countries. Coastwise there is also a great trade in these and many other manufactured articles, and in raw materials and provisions for the manufacturers within the united states.

An argument of great importance to the shipholders, exporters, and under­writers, and, indeed to the cultivators of the earth, in support of manufac­tures is to be drawn from their tendency to promote in an easy, certain, safe, and cheap way, the naval capacities and strength of the united states. The transportation of provisions, coal, raw materials, and other articles from the southern and middle states to the northern, and the diffusion of the manufac­tures, of the towns on the coast, throughout the union, already employs many vessels. The rice, indigo, cotton, hemp, flax, iron, hides, furs, tar, pitch, tur­pentine, rozin, wax, tobacco, wood and timber, flour and grain, shipped from the states, on, and to the southward of the Chesapeak, for the manufacturers in the middle and northern states, give employment at this time to a very respecta­ble portion of our tonnage. This cannot be doubted, when it is remembered that our coasters are 1 [...]0,000 tons, though our vessels in all the foreign trades pro­bably do not much exceed 150,000 tons; and the former are entirely out of the reach of foreign restriction, consequently (with the fishing vessels) are our most c [...]tain dependence. The weight of this circumstance, will be not a little in­creased by the recollection that the coasting trade is uncommonly interesting to a nation without transmarine colonies or dominions.

When we consider the fisheries as one of the modes of creating the powers of offence and defence at sea, and that our agriculture and commerce, must there­fore be supported and defended by our fishermen, and fishing vess [...]ls, among other means, it will be satisfactory to the cultivators, and merchants, that they will be promoted by the success of our manufactures. Skins and tues of sea animals, whalebone, and the head matter of the whale, are used by various ma [...]

[Page 15]

It appears from this table, that in those county towns (or seats of justice) in the interior and western parts of Pennsylvania, the necessity for manufactures has occasioned a little congregation of artizans, in the proportion of twenty-se­ven parts in one hundred, of the whole village in the smallest instance, and in the proportion of thirty-seven parts in one hundred, in the largest. The town of Washington, which is the most remote, and is beyond the Ohio, has been created since the late war. Its distance is about 300 miles west of Philadelphia. The variety of its manufactures is striking, and it may he safely affirmed, that at the seats of justice, in the counties of Delaware, Bucks, Chester, and Mont­gomery, which are nearest to Philadelphia, as great a number of manufacturers, in proportion to their respective population, does not exist, though the family manufactures are more considerable in these, and though they have numerous tanneries, iron works, powder mills, paper mills, blacksmiths, hatters, shoema­kers, weavers, and other valuable workmen, in their villages and scattered throughout their populous townships. This, however, is the case, in some de­gree, likewise in the [...]ownships of the western scene above described.

In the midland counties of Pennsylvania, manufactures have resulted from a flourishing agriculture, and, immediately on their birth, have contributed to the prosperity of the cultivators. The borough of Lancaster, which is the largest inland town in the united sta [...]es, is sixty-six miles from a seaport, and ten from any practised boat navigation. The number of families was in 1786, about 700, of whom 234 were manufacturers. The following is the list of them. Fourteen hatters, thirty-six shoemakers, four tanners, seventeen saddlers, twen­ty-five tailors, twenty-five weavers of woolen, linen, and cotton cloth, three stocking weavers, twenty-five white and black smiths, six wheelwrights, eleven [...]opers, six clock and watchmakers, six tobacco and snuff manufacturer, four [Page 16]enough from the north of Europe, to make and distribute gin from Archangel to Canton, which is really the case, it cannot be doubted that the united states which have the greatest surphus of grain of any country upon earth, which are rapidly increasing it, which are further from their consumers than any na­tion exporting grain, which have the lumber to make the casks for it, and the shipping to transport it, and are themselves great consumers of malt li­quors and distilled spirits, it cannot be doubted that a nation thus circum­stanced, must be able to manufacture those articles with facility and advantage to any extent of the demand. The benefits to foreign trade from the manufac­ture of ships, cordage, sail cloth, and anchors, as necessary instruments, and from those articles and potash, soap, candles, steel, carriages and other articles, for sale to foreigners here, or as payments or remittances to them abroad are already too obvious to need more than to be enumerated: but too much at­tention cannot be given to our situation, qualifications, and prospects in regard to the home manufacture of liquors, considering the disturbed state of the sugar islands, the increased consumption and prices of all the productions of the cane, the impediments to the ordinary importation of slaves, the objec­tions to the slave trade which are appearing in different quarters, the immense population of the manufacturing countries of Europe, and their consequent ne­cessity to employ in the culture of grain the lands they recently appropriated to the vine, as well as the impossibility of their sparing for the making of li­quor all the barley, rye, and oats, which were formerly consumed in that ma­nufacture.

There is also a considerable portion of foreign trade created by the importa­tion of raw materials and other necessaries for the employment and consump­tion of the manufacturers: cotton hemp, bar iron, sheet iron, copper and brass in pigs and sheets, lapis calaminaris, lead, pewter, wire of every metal, woolen, cotton, and linen yarn, hempen yarns, hides, skins, and furs, wool, paper for books and hangings, dyers colours, and some others, varnish, print­ing types, bullion for gold and silver smiths, gold and silver leaf, glue, mahogany, and other cabinet woods, melasses, and crude sugars for distillers and re­finers, manufacturers tools and implements, such as vizes, screwplates, an­vils, hammers, axes, hatchets, knives, awls, pincers, grindstones, hatters bow­strings, &c. glass plates for looking glass makers and coach makers, callicoes and linens for printing, morocco skins, and many other commodities which are expended in the workshops or families of our manufacturers, including foreign articles of apparel, furniture, food, and drink.

NUMBER III. A continuation of the reflexions on the manufactures of the united states as they af­fect the mercantile interest.

SOME of the benefits to the coasting trade and other parts of the domestic commerce resulting from manufactures, have already been intimated in treating of the manufacture of liquors. Besides these, bark and hides for the tanneries, iron, lead, steel, copper, hemp, flax, wool, cotton, silk, wood, timber, furs, tobacc [...], flaxseed, and gram, for the manufacturers of those articles, and pro­visions, fuel, indigo, and other objects of their consumption and use, together with the goods made by them, are, and constantly will be purchased, transported from place to place, and sold, creating a great part of the employment for 110,000 tons of coasting vessels, exercising a large portion of commercial industry and skill, and affording a return of profits, on a very considerable sum of mercantile capital, employed in the business. This branch of our trade is of peculiar importance; because we have no transmarine colonies, and while the redundancy of shipping owned by most nations, will leave us but little chance of materially increasing our vessels in the foreign trades, the extension we may give, in the course of ten years, to our home trade and navigation, will probably be very great. We have brought cotton, sugar, and saltpetre, to manufacture from India, sulphur from the Adriatic, hemp, flax, and iron, from Russia, copper from Sweden, furs, in­digo, and mahogany, from the gulph of Mexico, and coal for our workmen from England: and we cannot doubt, therefore, that we shall transport these commodities and others, from such of the states as produce them, to those which shall create, or have already established, a manufacturing demand.

Foreign commerce being limited by the combined value of our imports, and exports, any mercantile capital, which accumulates beyond the sum requisite for those purposes, would want employment of a commercial nature, if the merchant were not able to have recourse to manufactures. This is not a mere speculation in possible events; for considerable trading houses, and others of respectable standing, have actually entered into such pursuits. Class-houses, rope w [...]k [...], powder mills, iron wo [...]ks, steel works, s [...]tting and rolling mi [...]ls, grift mills, naileries, sugar refineries, breweries and distille [...]ies, the ma­nufactory of sail [...]th, and of woolen, cotton, and linen goods, exhibit at this moment numerous proofs of the fact.

It is too well known to need more than a bare allegation of the truth, that our ou [...]ward bound vessels are always completely [...], and that they do not on a medium return half sail. It will, therefore, increase the profits of the owners of ships, if the outward cargo can be rendered more valuable by manu­facturing, the goods to be exp [...]rted. This may be examplified in regard to wheat and the simple manufacture of s [...]pe [...]fine flour. A vessel, wh [...]ch will carry ten t [...]ousand b [...]rels of the former, at the price of a dollar per busa [...], will be lad [...]n for 10000 dolars: but the quantity of superine flour (3,000 barrels) which the same vessel c [...]uld receive, will amount, at a proportionate p [...]ce, to the sum of 15,000 dollars. The same qu [...]tity of ton [...]ge, fi [...]led with b [...]ttled port [...]r, [...]s [...]ied spirits, [...] [...]dage, [...], p [...]l ash [...]s, [...]ar [...]i [...]g [...], cabinet wa [...], plate, [...], soap, [...]se [...]d o [...], paper, hats, shee [...], [...], would [...] m [...]h [...]e [...]e [...] v [...]; and of [...] the ow [...]ers of the [...], w [...]u [...]d be able to purchase more goods for the return carge, by which the sh [...]p being sal­ler, [Page 18]would make a greater sum in freight back. This circumstance is rendered of the more consequence, by reason of our distance from the greater part of the consumers of our surplus produce: and it is obvious, that ships will then be most profitable, when the measurement of all our imports, shall be equal to the measurement of all our exports. Vessels, which depart and return fully la­den, cannot fail to enrich their owners.

No arguments will be necessary to convince the judicious and reflecting mind, that the employment of large capitals and of many merchants and traders is most certain and easy, where there is the greatest number and variety of objects to buy and sell. As our commercial towns, therefore, have offered manufac­tured commodities to those who come thither to trade, they have increased in business. Pot ash, pearl ash, country rum, domestic liquors, loaf sugar, &c. have already contributed to swell their exports, by attracting foreign demand, or in­creasing the number of profitable objects of shipment. These will naturally multiply under the hands of our manufacturers, and instead of markets, in which nothing but lumber, tobacco, stock, provisions, and raw materials were for­merly to be obtained, our seaports will be converted into magazines, in which all those articles will be purchaseable, and the various commodities manufac­tured from them. For these goods in whatever shape, purchasers will never be wanting: cheap merchandise as certainly attracts buyers, as water finds its level. Nor is this mere sanguine hope, or ingenious suggestion; for it is an obvious truth, that the greatest manufacturing nations in the old world, are the greatest traders to foreign parts. Holland, when most remarkable for manufac­tures, traded to the amount of eighty millions of dollars per annum in the commodities of other countries.

A few general reflexions on American manufactures.

The political concord and attachments, which grow out of mutual benefits, are the most rational and permanent. In this view, the cement, which will be given to the national union, by the interchanges of raw materials, provisions, fuel, and manufactures among the several states, is of inestimable value. If European nations have shown dispositions of amity and mutual forbearance, on these considerations, it cannot be doubted that sister states will evince equal wisdom and virtue. If many parts of our union, from policy or tem­porary necessity for manufactured supplies, have been willing to exhibit the greatest liberality towards those foreigners, with whom they have been recently at the widest variance, it must appear very desirable, that the capacity at once to accommodate them and engage their regard, should be transferred from distant strangers, to their own continent, and their own kindred. If the merchants and manufacturers of the opulent nation with whom the united states so long waged war, influenced by the hope of our consumption, cried aloud for peace, and, on the moment of its return, pressed with all the cour­tesies of commerce to our shores, the existing friendship of the several parts of the union for each other must be strengthened by similar influences, as they shall be progressively created.

The animated prosecution and liberal encouragement of manufactures, is at this moment a great political duty. The national legislature has increased the impost on foreign merchandise, to defray the expenses of the Indian war. The continuance of a great part of the duties is to be no longer than that of the hostilities which occasioned them to be laid. If the interval should be dili­gently employed in the promotion of manuf [...]ctures, which these duties are calculated to create and to protect, the temporary injuries of the Indian war will be accompanied and followed by great solid, and permanent benefits. The military expense is rendered less burden [...]eme, by the employment given to our [Page 19]own workmen. The shoes, boots, horsemen's caps, hats, buckles, buttons, sadlery, spears, rifles, gunpowder, and other articles for the use of the army, are made by American manufacturers. It is perceived, that war, which often interrupts foreign commerce and generally diminishes the prices of agricultu­ral productions for exportation, has in this instance no effects of that nature; but by judicious arrangements, may be rendered instrumental to the greatest support of the landed interest— the national manufactures. The lamentable ha­voc of the field must inevitably diminish the number of our cit [...]zens; but there is every reason to beli [...]e, that those, who, in the course of the present war, may fall under the banners of their country, will prove inferior in number to those who will be drawn, by the influence of the new duties, from foreign countries, to the standard of American manufactures: and although the most useful arts are no compensation for the lives of our compatriots, the acquisition of a greater number of new citizens will counterbalance the political evil re­sulting from such a loss, so far as it may unhappily occur.

It is detrimental to the united states that the manufactures they consume are drawn from nations whose citizens pay much greater contributions to their government than our manufacturers, and consequently that we so far forth are subject to their taxes, imposts, and excises. In Great Britain, for example, their national taxes are seven times as large as ours, in proportion to the numbers of people in the two countries; and their poor rates and church rate are each more than double our whole national contributions. The monopolies of those countries fall heavily upon the consumers, among their citizens; and those, who purchase their fabries, bear a part of this burden, which lies on their manufacturers. The commercial charges paid by the English East India company abroad, amount to one million of dollars per annum; the [...]r [...]ght and charges in England are about two millions and two thirds more, exclu­sively of duties. The company's civil and military charges would, in two years like the present, pay all the expenses of our government, and discharge our national debt. The restrictions on navigation and trade in the European nations also enhance the price of raw materials and articles of consumption required by their manufacturers, all which falls ultimately upon the people of the united states, so far as their fabries are consumed here. Th [...]se considera­tions should induce our most strenuous exertions, to diminish those indirect burdens, and at the same time they hold out strong promises of a successful issue to our efforts.

In taking a view of the aff [...]irs of the united states, and comparing them with the situation of most of the great commercial nations of Europe, the mind is immediately impressed with the peculiarity of their being without transmarine colonies. Though sp [...]culative politicians have entertained doubts in regard to favourable effects from such possessions, taking into view the ex­penses of their improvement, defence, and government, no question has be [...]n made but that the monopoly of their trade greatly increases the commerce of the nations to which they are appertenant. Of such an advantage the united states do not enjoy the benefit; and considering this circumstance, and the prevailing disposition to restrict their commerce, the fisheries, the coasting trade, and manufactures appear to merit extraordinary attention.

The consideration of manufactures, upon general principles, has b [...]en, for several years, before the leg [...]slatures as well of the states, as of the union. The estimation of th [...]ir importance to the landed and national interest [...] appears to have been y [...]ly heightened by discussion and enquiries into facts. Ho [...]se­hold manufactures, have acquired universal and de [...]i [...]ed approbation. To th [...]se which are conducted by labour-saving machinery and processes, by ho [...]es and oxen, and which consequently do not require manual operations, no objection [Page 20]has been made. Such of them as can be carried on by the manufacturers now among us, by those who may migrate hither, by the wives and children of our citizens, and by black women, old men, and children, have not been consi­dered as diminishing the mass of agricultural industry, but as manifestly promoting it by new and extensive demands.

The present discussion of the subject will be terminated by remarking, that although this great subdivision of our political economy has been copi­ously and freely treated in every mode, it has not only preserved its origi­nal importance in the public judgment, but has risen in the estimation of the people in every part of the union— a fate that rarely attends unimportant truths or dangerous errors in an enlightened country.

Concerning the imports of the united states.

This part of the national business has given rise to doubts, whether the united states are really in a prosperous situation. The apprehension is believed, howe­ver, to have proceeded from several errors. The estimation of the imports has probably been made at the prices current in America, which is more than the united states pay for them, by the total value of the following particulars. 1st, Such part of the shipping charges abroad, as accrue to the benefit of the citi­zens of the united states, who may be on the spot to make the shipment: 2dly, that part of the freight upon them, which is paid to our own vessels: 3dly, that part of the premium of insurance upon them, which is paid to American un­derwriters or insurers: 4thly, the whole amount of the duties, and custom-house sees, on the goods, which amount to several millions of dollars. 5thly, the amount of the tonnage and fees on foreign vessels, which are deductions in sa­vour of the country, from the value of the goods imported in them: 6thly, the porterage, storage, cooperage, weighing, guaging, measuring, commissions on sales here and other incidental expenses on that part of the imports which be­longs to foreigners: 7thly, the profits of our merchants on that part of the im­ports which belongs to them: 8thly, the wasteage of goods belonging to for­eigners between their arrival or time of valuation and the time of sale: 9thly the benefit of credit, which is not less than two and an half per cent. on the whole value of our imports: and 10thly, the value of those importal goods which remain in the country, being the property of persons intending to become, or who will ultimately become citizens of the united states. But the apparent o [...] conjectural disproportion between the exports and imports of the united states, will be considerably diminished by the sales of vessels to foreigners at home and abroad—the sales of lands to them—the expenses of foreigners here —the expenses of foreign vessels here, and the cost of their sea stores—the com­missions on the shipments of their cargoes, and on the disbursement of their vessels, as already observed in treating of our exports. Besides these, the freight of goods ships to foreign countries in our own vessels, (not less, probably, than three [...]ns o [...] dollars) and the profits upon all the goods exported on the accou [...] [...] our own citizens, contribute very much to increase the fund, where­with ou [...] imports are purchased or paid for. An estimate, which shall compre­h [...] all these it [...]ras at their true value, is necessary to form a satisfactory opi­nion of the balance on our trade. From such an estimation (which has been made) th [...]e would [...]e [...]uh no reason to doubt our prosperity: nor will this ap­pear quesi [...]table, when it is remembered, that the outward freights in our own vessels, and the duties on goods imported, amount together to 6,400,000 dol­lars, which is more than one third of our exports. The balance of trade has been aptly denominated the metaphysies of commerce. To determine it with in­duputable certainty re [...]ui [...]es as accurate and elaborate an in [...]estigation as a me­taphysical [Page 21]question: and though this assertion proves nothing, it will inspire us with due caution against hastily adopting unfavourable conclusions.

An opinion somewhat singular and of considerable importance will be hazard­ed upon this subject. The united states, to make the utmost advantage of things in their present improveable situation, should have little or no balance in their fa­vour on their general commerce. If their exports, outward freights, sales of ves­sels and lands, &c. amount to twenty-four millions of dollars per annum, they will find their true interest in importing the whole value in well-selected com­modities. It is better, for example, that they import melasses, hemp, cotton, wool, bar iron, hides, skins, furs, saltpetre, sulphur, copper, tin, brass, paper, mahogany, &c. to manufacture; tools for artizans, and materials and utensils for constructing works, improving waste lands, and cultivating farms, and breeding cattle, horses, and sheep; than that they should bring back the equivalent in gold or silver. The sum we annually import in articles of that nature, more precious to us than the most precious metals, would constitute an immense balance in our favour: such, indeed, as would, in a few years, oppress our country with too copious a circulating medium, or compel us to export it.

That the exports and other means of paying for our imports are much more adequate to the occasion, than they were during several years subsequent to the peace, is manifest from the state of our private credit in Europe.

A distinction, and, it is conceived, a very important one, has been already intimated in favour of such of our imports as are of a nature adapted to en­lance the value of our lands, or to employ or assist our citizens: and in regard to those which are for immediate consumption, the quantity cannot be in pro­portion to our former imports, considering the increase of population. We have almost absolutely ceased to import shoes, boots, sadlery, coarse hats, plate, snuff, manufactured tobacco, cabinet wares, carriages, wool and cotton cards, hanging paper, gunpowder, and other articles; and we have exceedingly di­minished our impertation of coarse linen and woolen goods, cordage, copper uten­sils, tin utensils, malt liquors, loaf sugar, steel, paper, playing cards, glue, wasers, fine hats, braziery, watches and clocks, cheese, &c: and we either make these articles from native productions, by which the whole value is struck off from our imports, or we manufacture them of foreign raw materials, which cost loss than the goods used to do, especially as they often yield a great freight to our own vessels. Thus the freight of the melasses to make rum, imported in one year, at two dollars per hhd. was not less than 140,000 dollars. The same observation occurs as to hemp, cotton, iron, copper, brass, tin, saltpetre, sulphur, mahogany, hides, dye woods, and other raw materials.

From these circumstantial evidences, there would appear to be little danger of mistake, in concluding, that our imports, on a medium of two or three years, have not been disproportionate to our exports, and other safe and regular means of balancing the amount of our supplies. But though the documents for a comparison between the present imports, and those antecedent to the revolu­tion, are less perfect than is to be desired, some which offer are worthy of atten­tion. Our imports from Great Britain in 1770, making some addition for those from Ireland and adding 20 per cent. to bring them to their market value, were worth here above £. 2,400,000 sterling. In this item, the information ob­tained from a report of the lords of the British privy council, is principally re­lied on, though a part of it is supplementary estimation. To this sum is to be added, a proportion of the imports into all the American colonies in 1770, from all the rest of the would but Great Britain, which, after deducting therefrom £. 73,000 ste [...]l. for the value imported into Bermuda, the Bahamas, the northern British colonies, and Newfoundland, leaves £. 1,050,000 sterling, at the value here. The total value [Page 22]of our imports in 1770, would then appear to have been more than £. 3,450,000 or about 15,000,000 dollars, as they would have sold in the American market; exclusive of the contraband trade, which was considerable. This will be seen by a reference to the first number of these reflexions, to be full seven millions of dollars more than our exports at the same time. If then our imports were to bear the same proportion to 18,250,000 dollars (our present exports) the form­er might be above 34,000,000 dollars, without creating more alarm than we had then reason to feel. This view of the subject may convince us, that our im­ports were too copious, at least in some quarters, for several years before the war; and hence we find a heavy load of private debt was created and remains upon the citizens of some of the states at this day. Happily for the united states, the reduction of the priers of supplies, by the present freedom of their com­merce, by the agency of skilful merchants instead of planters inexperienced in trade, by the introduction of machinery in Europe, and by their own manufac­turing industry, has kept down their imports many millions of dollars below that sum, although the import and tonnage have directly or indirectly contribu­ted to enhance the nominal amount, without increasing the [...]um to be paid for them abroad.

A sketch of the general trade of the united states.

In taking a survey of the American commerce, the attention is pleasingly at­tracted to the increase of ship-building, the new manufactories of articles ne­cessary to the equipment of vessels, and the improvement in the art of ship­building, as well as the superior quality of the materials now used in their construction. The largest number of vessels built in any one year before the late war, as far as it can be ascertained, was equal to 24,358 tons; and at least 32,000 tons of superior quality were built in 1791. The timber and plark are more chosen, and iron is more copiously used at this time, because the vessels are not intended for sale, and the sensible practice of salting them, is becoming very frequent. It is important, too, that the art of ship-building is diffused more generally than any other equally important one, which is carried on within the united states.

The export trade in our produce is more beneficial than heretofore to the landed interest, because the cultivators do not, as formerly, anticipate upon their crops abroad, by ordering out supplies at the discretion of the European merchant; to be paid for in shipments of their crops upon their own account and risque. The pla [...]rs in Maryland and Virginia, particularly the tobacco planters, suffered extremely from an inconsiderate pursuit of that practice before the resolution. The American merchant is now more frequently their importer; and as he understands the mode of procuring goods cheap, the real profits of the import and export trade of the country, are in a greater degree divided be­tween the planter and the trader.

The reduction of the prices of East India and China goods, of every spe­cies of manufactures in which labour saving machmery and slight apply, and of wines, occasion our imports to be obtained on more favourable terms. This beneficial effect is increased by the freedom of our import trade, which lets in the productions and manufactures of all countries by a direct intercourse with them, which was formerly forbidden. From the same cause, superior prices for our produce and manufactured artic [...]s have been obtained. If tobacco is be­coming an exception, it is to be remembered, that great prices were obtained for it till lately, and that the extraordinary quantity raised is sufficient to account for its f [...]l.

The coasting trade has become very great, and the derangement of the West India trade must extend it exceedingly, during the current year, from the failure of melasses. The increase of manufactures, and foreign res [...]ctions [Page 23]on other branches, have contributed to elevate this valuable part of our com­merce; and the former (manufactures) will continue steadily to increase its importance. The vessels, which take supplies of flour, and many other arti­cles from the middle and northern states to South Carolina and Georgia, make very frequent voyages, and they return lets than half laden: but if the planters should pursue the cultivation of hemp, flax, hops, and cotton, they may come trick with full cargoes. A similar remark may be justly made in regard to other states.

The fisheries do not appear to have recovered their former value; but it is plain, they have increased yearly since 1789: and they are even now more valuable than they appear to be. The consumption of oil, [...]h [...]debone, skins of sea animals, spermaceti, and pickled and dried fish, is much greater in the united states at this time, than it was twenty years ago. The outfits of the fishing vessels, too, are more from the industry and resources of the country than was formerly the case. Wherefore the general benefits resulting from the f [...]sheries, are probably little less than before the revolution.

Remote as the united states are from all foreign nations, totally unconnected with their po [...]itics, and having no temptation to wage war for territory, they cannot but advance in commercial and agricultural prosperity, if they preserve order and justice at home. Foreign restrictions will be necessarily less rigid, as occasions for supplies and pacific services from the united states shall arise: and these occasions must inevitably exist in every maritime nation, which shall en­gage in war, even with a country, which is not itself maritime.

The profecution of manufactures has created some increase of our foreign trade, and will extend it. If we did not pursue that branch of industry, we should not import copper, iron, and hemp, from the Baltic; cotton, saltpetre, and white callicoes from India; and cocoa, dye-woods, mahogany, cotton, and hides from the West Indies, and the southern parts of the American continent. Some of these importations are regularly and extensively made; others are in­creasing. Without them we should have no intercourse with some of these coun­tries, and much less than we now have with others. In like manner, our in­tercourse with reveral countries is increased by manufactured exports. The demand for our potash, distilled spirits, ships and boats, steel, malt liquors, cheese, bar iron, slit iron, steel, gunpowder, carriages, and other articles, occa­sions a greater and more beneficial trade with many foreign ports. It is impos­possible to say how rapid and how considerable the progress of this part of our commerce will be. The exported manufactures of Great Britain, in 1791, were greater than those of fifty years ago, by twice the value of our present ex­ports.

It is extremely favourable to American commerce, internal and foreign, that a variety of changes have taken place in the affairs of the would, which have opened branches of trade formerly withhold from us by monopoly, or other circumstances. The act of separation from Great Britain enabled us to trade to China, Bombay, and Surat; and the enterprise of our citizens soon discovered the way. The curious perfection of manufacturing machinery in Europe, has made it the interest of the foreign India compames to fell us their piece goods in the markets of the cad, without taking them at second hand. The m [...]for­tunes of St. D [...]mingo have increased our commerce in indigo, and will have the same effect upon cotton, and they are driving us rapidly into an internal trade in native sp [...]ts, which will of comse lead to external commence of the same kind. This [...] appe [...] to be a matter of great importance, when it is remem­bered, that [...]ce the late pea [...], the foreign spirits imported have in some years been [...]qu [...] to one fifth of our exports. I h [...] [...]lure of ship timber, which be­g [...] to appear every where in Europe, is enabling the united states to carry on ship bu [...]ing upon very advantageous terms. The profitable establishment of [Page 24]Several banks of perfect credit with the most wary and judicious citizens and foreigners, is at once a proof, and a great mean of commercial prosperity. The growth of cities, towns, and manufactures, has given to the fisheries a more substantial basis in a considerable home demand, than they formerly had in a foreign one. The banishment of paper tenders, and ex post facto laws, and the interdiction of laws impairing the obligations of contracts, have placed our commerce upon a more honourable and solid footing, than it ever was before. The mint, the laws regulating seamen and the fisheries, the appreciation of the public debt, the spirit of improvement on roads, rivers, and canals, the discovery of coal near navigable water, the late extension of the post of­fice, the constant increase of light houses on the coasts, the introduction of auxiliary arts, and above all, the progress of agriculture, have given facili [...]es, stability, and extension to our trade, which were unknown before the revolu­tion, and which in the distressful derangements of 1786 and 1787. appeared be­yond the bounds of reasonable expectation.

FROM THE AMERICAN MUSEUM. Reflexions on the state of the u [...]n.
NUMBER IV. Concerning the banks established in the united states.

THESE valuable institutions were unknown to us before the re­volution, being added to the political economy in the latter part of the war. The paper emissions in the times of the provinces, had yielded some of the advantages of bank notes, though with less safety to those who received them. But the degree in which they were unavoidably recurred to, in the course of the war, had com­pletely destroyed the utility of paper money in 1781. The state of public credit, and indeed of the public affairs in general, as well as the exigencies of the cultivators, merchants, and manufacturers, required an efficient substitute for an instrument of negociation and dealing, of so great compass. The scheme of a bank presented itself in the manner, which is universally known, as the most probable mean of accommodating the general necessities, political, agricultu­ral, and commercial. The promises, which the plan made, were abundantly fulfilled; and at the same time a standard of public con­duct and action in regard to the rights of property, was unobservedly erected, at a moment when the recent course of events had render­ed it very desirable, as well from political as moral considerations. It has been found, accordingly, that the laws which concern pro­perty, in the places where banks have been established, have quick­ly acquired a stability, if they were good, and have meliorated, if they were before exceptionable, notwithstanding any supposed or real errors in the plans or administration of the institutions.

In re [...]ecting upon these establishments, one cannot but call to mind a suggestion, which frequently occurs, that too large a por­tion of the capital of the united states, has been applied to them. Few pecuniary operations are of as much importance. In estimat­ing the extent to which we might have gone with prudence, an ex­amination of the state of that business in a successful and at the same time the best known scene of trade in Europe, may be of some use. In the city of London, the bank of England (exclusively of that of Scotland) has operated with a capital of more than fifty millions of dollars about forty-six years. The population of England, on a medium, during that term, has been less than double that of the united states at present, yet the capital of its bank has been above five times the capital of our national bank, and near five times the a­mount of all the subscriptions which are yet paid into all the banks in the united states. There are, moreover, a great number of private banks in the same city, probably not less than sixty in number, some of which have more capital stock, than any bank in this coun­try, except that of the united states. The aggregate amount of their capitals is probably equal to that of the bank of England. Besides these, there are very many considerable private banks scat­tered through the kingdom. In addition to these, there are the public and the private banks of Scotland. If the banks of England [Page 26]and Scotland, public and private, out of London, be equal to the private banks of London alone, then the capital of those institu­tions in Great Britain, will be 150,000,000 dollars, or above fourteen times as many dollars as there are persons in that kingdom, though the whole of the stocks of the banks in the united states, which are paid in, are not equal to three times the number of their inhabi­tants. Again. If the banks of Great Britain be measured by the exports of that island, it will be found, that the latter, at their highest value (ninety millions of dollars) are only three fifths of their aggregate bank capital, and that our exports, at 18,250,000 dollars, are above two thirds more than all our bank capital, which is actually paid in. Taking the British imports at 80,000,000 of dollars, and those of the united states at 24,000,000, the comparison will be still more in favour of the discretion, which has been obser­ved in the united states. But a very important measure of these in­stitutions yet remains to be applied, by which prudent men will be disposed to test the subject— the quantity of specie. The bank capital of Great Britain being, as above stated, about 150 millions of dol­lars, and the quantum of specie being never estimated at more than 22,000,000 l. sterling, or 97,700,000 dollars, the aggregate bank ca­pitals of the united states, as now paid in (ten and one half millions of dollars) would be as prudently, and solidly founded on a quantity of specie a little less than seven millions of dollars. Al­though it would be impossible to ascertain the precise amount of the specie of the united states, estimates carefully made, appear to war­rant a belief, that it is equal to that sum. But while examinations like these seem to abate and even entirely to destroy, the apprehen­sion that we may have pursued the business of banking to the injury of agriculture, manufactures, and commerce, some circumstances of a prudential nature are not to be overlooked. When forming these establishments, we may commit errors, perhaps, in carrying into one scene too great a proportion of the capital appropriated to their creation. Hence the sound policy of subtracting from the mass of the bank of the united states, to establish branches at New-York, Boston, Baltimore, Charleston and (as is said to be intended) in Vir­ginia, ministering to the convenience, the necessities, and the in­terests of government, the planter, the farmer, the merchant, the navigator, the fisherman, the shipbuilder, the manufacturer and the mechanic, in six several and variant scenes, instead of accumu­lating in one great mass, a superabundant capital—A political magnet attracting through devious courses and attaching all things to its own vicinity.

It is possible to err, too, in the disposition of banking establish­ments, by superadding to those which already accommodate a par­ticular scene, rather than introducing the new institutions into places hitherto without them. The united states contain five or six great local subdivisions of trade, resulting principally from the im­perious dictates of the nature of things. In most of those great spheres, there is more than one considerable and flourishing trading town, though there is in each, one which has an acknowledged pre-emi­nence. When a reasonable portion of bank capital has been intro­duced into one of these commercial metropoles, the establishment of a new bank would seem to be most expedient in the trading town of the next degree of consideration. It is true, that so far as the operation [Page 27]is an employment, or application of the property of individuals, it must be left, (within the laws) to their own will; but as the act of in­corporation places the subject within the power of the legislatures, and within the sphere of their cares and duties, so it is highly im­portant that these institutions be modified in their original formation, upon prin [...]ciples of distributive justice, in regard to the reasonable accommodation of the marts of commerce within their sphere of le­gislation, and of all the landed citizens, who resort to them for the sales of their surplus produce, or the purchase of their supplies.

A precious consequence has resulted from the distribution of banks through different parts of the united states. Like all great objects, these institutions, while operating very beneficially in re­gard to the business of a country, are liable to be rendered instru­mental to local party views. Being committed, as in the united states, to ten several boards of directors, selected for the service on account of their property, integrity, talents, and attention to business, and whose primary duties are the legal, discreet, and beneficial ex­ecution of their trust, it is not probable, nor, indeed, is it in their power, to deviate from their proper walk, into the ground of po­litical combination and intrigue.

A circumstance observable in the bank of the united states, will not fail to attract the at [...]e [...]tion of cautious men. The portion of public debt, which enters into the composition of their stock, is the particular contemplated. In this respect, the bank of England, and the bank of Ireland (which are among the best accredited of those institutions in Europe) exceed that of the united states in the proportion of one third. It is very favourable to our insti­tution, that the national debt, and ordinary and extraordinary expenses of both Great Britain and Ireland are much greater in pro­portion to wealth and numbers, than those of the united states, and that our government is not less free from error, nor more like to be disturbed than theirs. It cannot, therefore, be more unsafe to con­side in our institution, which contains three fourths, than in theirs which is wholly composed of public debt. It is, moreover, true, and worthy of observation, that most of the other banks in the united states (and particularly the three largest) have voluntarily and by their own operations placed considerable portions of their stock up­on the credit of the united states, by purchasing largely of the public debt, and by giving at this time extensive credits founded upon its security. The market value of the public debt, which is generally greater in specie than its nominal amount, renders that part of the bank stock, which is composed of it, intrinsically more valuable than that which is in coin.

Concerning the national industry.

An enquiry into the knowledge or skill, assiduity, economy, [...] frugality, and good management with which the several descriptions of citizens in the united states pursue their employments, has never been made. The subject is copious, and would require much previ­ous enquiry and detail. It is not intended, therefore, in this place to attempt a developement of it: yet it may be serviceable to be­stow upon it a few brief reflexions. The learned professions will not be brought into view, as they are not strictly of the nature of [Page 28]the object contemplated. The planters, the farmers, the merchants, the navigators, the fishermen, the shipbuilders, the manufacturers and the mechanic, with the persons immediately employed by them, are all which are conceived to be comprehended in the subject. The body of the planters, that is, those who cultivate tobacco, rice, indigo, and cotton, are, as a general description of cultivators, the best inform­ed in regard to the object of their particular pursuit, though it is manifest that they have abundant matter for increased attention in perfecting their cultivation, in ascertaining those species of their va­luable plants, which are most excellent, most certain, and most pro­ductive, in the improvement of their implements of husbandry, in the acquisition of auxiliary implements and machinery, in perfect­ing the modes of curing their produce, and preparing it for market and particularly in the attainment of an adequate substitute for the ordinary species of labourers, a supply of which has become precari­ous. It appears to be worth their considering, too, as well with an eye to profit, as humanity, whether an advantageous variation in the employment of some of the blacks might not be made, by introduc­ing upon every estate some of the simpler manufactures to employ children, old and invalid persons of both sexes, and particularly the females during that term when two lives depend upon their health.

The merchants, navigators, fishermen, and shipbuilders of the united states may be safely affirmed to be four descriptions of our citizens, whose industry is as uniformly energetic and well directed, as those of any country in the world, though it is certain that a much stricter economy prevails among persons of some foreign na­tions engaged in those pursuits—an example demanding serious at­tention.

The manufacturers in some branches pursue their occupations under the disadvantages of very few errors; yet those citizens would be sensibly benefited, were they able to relieve themselves of certain parts of their labour by the attainment of the auxiliary machinery, which are the purchase of larger capitals than are yet engaged in their line. Circumstances, however, of various kinds are daily contributing to remove this inconvenience. The bulk of the manufacturers do not want industry, nor skill enough to succeed in those simple manufactures, to which it is most their interest to ap­ply themselves. It may be rather said, that they manufacture ordi­nary kinds of fabries, from the nature of the demand, than that they manufacture badly. Their business is, moreover, progressively advancing, and has felt, on several occasions, some of them recent, the fostering hand of goverument.

The mechanic branches have been, till this time, on nearly as good a footing; but those employed in the erection of buildings ought now to seek the and of such parts of science as have relation to their calling. Architecture has been little studied. It ought not to be forgotten, that a competent knowledge of it is no less conducive to economy and convenience, than to elegance and splendor.

The most important of all the employments of our citizens, that of the farmer, remains to be noticed. It is very much to be feared, that in point of execution, a candid examination would prove that [Page 29]this best of pursuits is most imperfectly conducted. The proofs are, innumerable instances of impoverished lands, bodies of mea­dow lands, in the old settlements, which remain in a state of nature, an almost universal inattention to the making or preserving of ma­nure, the frequent inattention to the condition of the feed grain, evidenced by the growth of inferior grain in fields of wheat, and by the complexion of the flour in some quarters, the bad condition of barns, stables and fences, and in some places the total want of the former, the deficiency of spring-houses or other cool dairies in extensive tracts of country, the want, or a trifling stock of bees, the frequent want of orchards, and the neglect of those which have been planted by preceding occupants, the neglect of the sugar tree, the neglect of fallen timber and fuel, accompanied with the wanton felling of timber trees for fuel, the neglect of household manufactures in many families, the neglect of making pot-ash, the non-use of oxen, and above all, the growth in substance, of large bodies of farmers on lands of ordinary quality, while the inhabi­tants of extensive scenes, hardly extract from much superior lands, a miserable sustenance and more miserable clothing.

It is a fact very painful to observe, and unpleasant to represent, but it is indubitably true, that farming in the grain states, their great best business, the employment most precious in free govern­ments, is, too generally speaking, the least understood, or the least economically and attentively pursued, of any of the occupa­tions which engage the citizens of the united states. It is acknow­ledged, however, with satisfaction, that great changes have been lately made, and that the energy, spirit of improvement, and eco­nomy, which have been recently displayed, promise the regular and rapid melioration of the agricultural system. All other things have taken a course of great improvement—and it cannot be apprehend­ed that the yeomanry of the united states will permit themselves to be excelled by any of their brethren, in the most precious cha­racteristic of a good citizen— usefulness in their proper sphere.

Concerning the laws which intrench upon the rights of property.

It is not remembered that the acts of the national legislature have been deemed by any of the possessors of any description of property, unfavourable to their rights, except the proceedings in regard to the public debt. It is no less curious than true, that a part of the community affirm that the government have injured the country by too much liberality, while another part charge the legislature with impairing the contract.

In taking a view of this subject, it should be remembered, that the state of things when it was taken up, was in every respect critical and uncertain. It was difficult to say what the country could perform, and more so to tell what they would comply with. It was perceived, on the one hand, that as such a state of public [...]re [...]t as preceded the year 1789, would ruin a government more energetic than that of the united states, so its immediate melioration was a matter of the most imperious necessity. On the other hand, the non-existence of one single efficient funding system, yielding a full specie interest, in any one state, and a number of painful facts in the financial operations of some of the legislatures, created a conviction, that there was either an inability or disinclination in all to render a specie pay­ment [Page 30]in the full extent of the explicit contracts. Some of the con­tracts were found not to be explicit containing promises of large sums under the name specie, which it could not have been the expectation of the government at their date to discharge, or of the creditor to receive in coin; because they promised to pay as spe­cie, what was notoriously much less valuable than contracts previ­ously liquidated at forty nominal dollars for one in coin. The claims of the original creditors also were strongly represented, while the conduct of every state in the union, in its particular finances, had discountenanced a discrimination in their favour; and the established laws of property were urged against a reduction of the owners prin­cipal: questions were also raised about the original intrinsic value of the money and property received by the [...]nired states, leading to the devising of a new scale of depreciation. By infusing into the proposi­tions for a settlement of the debt, two qualities— a reduction of the interest and a temporary irredeemability of the principal, which have cost the debtor nothing, and the creditor very little; by vigerous and well devised efforts to recover credit at home and abroad, an arrange­ment was formed, and executed, which has given better payment to the creditor than could reasonably have been hoped. It is plain to every observer, that, but for the indiscretions of some of the pub­lic creditors, who superadded to the trials and fluctuations of a convalescent state of credit the late unparalleled difficulties of the holders of the stock, the three species of the public poper, taken at a medium, would have been worth the nominal value in the market. Hitherto it never has been.

There yet remain, however, in the united states some laws which affect the rights of property. The operation of instalment and va­luation laws is not terminated in two or three of the states. In two or three others, paper money is a tender in all or in particular cases. In some quarters, real estate is protected from execution for debt; and in others, the judgments of the courts are suspended, if the income of the estate bears a certain proportion to the credi­tors' demand. In some of the states, preferences are given to the claims of citizens, before those of citizens of the other states, or of foreigners; and a variety of ill exists in many quarters, in the form of insolvent laws. The sederal constitution, and those of se­veral of the states, have barred the introduction of these evils in regard to new transactions; and the states which are not chargea­ble with them, in regard to past affairs, have reaped, in the last three years an ample reward for their wisdom and virtue. Proper­ty may almost be called the palladium of communities. Their moral safety at least is always at hazard, when that is unwarrantably in­vaded. In every case wherein difficulties to obtain his own are in­terposed in the way of the honest and industrious citizen, his loss is not all the public injury. A fellow-citizen—perhaps a member of a legislature (and through him a legislature itself) is corrupted in his principles.

Concerning the public debts.

When it is remembered, that the terms upon which the debts of the states were assumed by cougress, are not more favourable than those on which the sedral debt was funded, and when it is called to mind, that the unassumed debts of all the states are less valuable [Page 31]in the market than those which were assumed, it will appear, that the public creditors of the union have little reason to complain. When the advantages of the temporary irredeemability, and of the opportunity of investment in the bank are recollected, the lit­tle reason, if any existed, appears to be dissipated. On the other hand, when it is remembered, that long after the promulgation of the funding system and of the bank, the possessors of specie might have procured certificates upon very advantageous terms, that the united states draw a fifth of the profits of the bank without fur­nishing any of the capital, that the grant of irredeemability is tem­porary. and so perfectly nominal, that we have now a right to pay off more than we have money to discharge; when it is also borne in mind, that the terms given by congress to the public creditors, were exceeded (by law at least) in several of the states, and that two of them have added to the benefits of their citizens from the funding system, without discriminating in favour of the original creditor, or against the present holder, the arrangement of the ge­neral government appears to be consistent with the public interests and with the wisdom of the state legislatures. If the funding sys­tem of congress has been thus equally just and beneficial with those of the states, it has been accompanied with many advantages which cannot be questioned. Public credit is restored—in conse­quence of that, the contracts for all public supplies are made for cash on the deliveries or performance—the money, thus early pro­mised, is paid by anticipation on the proffer of indubitable secu­rity by the various coutractors; and interest in favour of the united states has been allowed for the promptitude of her treasury—half a million of dollars of specie claims have been discharged; and pur­chases of the public de [...]t, which bring the extinguished sum to about 2,400,000 dollars, have been made, or provided for—a series of payments since the mouth of September (required by the most distinguished ally of the united states, in the late war) have been made to serve the occasions of their unhappy colonists. Loans upon five per cent. upon four and a half per cent. and upon four per cent. interest, have been effected in two opulent scenes in Europe, solely by means of our restored credit, to repay in the hour of need, to that ally, the monies lent to the united states in a like season. All that is due has been paid. [...]rt of that which is not yet due has been anticipated. Mo [...]ies anxiously desired by France, have been discharged by means of loans at a lower interest. Both nations are benefited and pleased; but our country is honoured by the transaction. To have neglected our public credit, would have been to lose these advantages.

It will not be questioned, that there is in every walk of life or business a gr [...]er proportion of money, than was observable two years ago. Public works and buildings of every kind, and of species and values [...]nown among us till the present time, are undertak­ing every where. Private buildings, of equal variety, and compara­tive value, are spring [...] up. The price of lands is advanced. The raw materials, though [...] greater abundance, sell for larger prices To what on [...] so powerful, so adequate, can these things be ascribed [...] to the [...] of part and re-animation of the whole, of a public de [...], ten [...]i [...] [...]r than the amount of all the specie ordinarily c [...]culating in the country?

[Page 32] The relief of some of the states from their burdens, has been ano­ther beneficial consequence of the funding of the debt. It is but a few years since one of the most frugal, vigorous, and productive counties in Pennsylvania rose against the collectors of the taxes. The appreciation and sale of the immense mass of sederal securities, owned by that state, has enabled her to discharge all her obliga­tions, though she has abolished her general land tax, and disconti­nued her excise, both of which she has collected for forty years.

Some anxiety has been created by the share of our debt, which for­eigners have obtained. But this was a powerful means of bringing the whole into its present beneficial action, by elevating its actual to its nominal value. It is not at all probable, that it will be drawn from the country. It has been observed, in the most tranquil and prosperous state of Europe, that a great proportion of the families of those foreigners, who have made large investments in the united states, either in the times of the provinces, or since the revolution, have become inhabitants of this country, even when in its rudest infant state. At this serious moment, when almost every transat­lantic country seels or apprehends disorders, our chances are in­finitely increased. The united states, advanced in the means of sub­sistence comfort, and of elegance, now present to them an object of greater desire in a tranquil liberty, which they are struggling to obtain, a teeming agriculture, and a prosperous commerce, both foreign and internal. Conformably with these reflexions, we may affirm, that no great object in our affairs has failed to attract the notice of the foreigners, who have engaged in our funds. The in­ternal navigation of South Carolina, North Carolina, Virginia, Maryland, Pennsylvania, New-Jersey and New-York, are among the witnesses of this truth. The banks, both national and state, the turnpike roads, and toll bridges, the sales of city estates, of cultivated farms, and particularly of unimproved lands, commerce, ship-build­ing, manuta [...]tures, confirm the fact. Let us continue to exhibit an honest spirit in our laws and constitutions, an efficient execution of them, and due abstinence from unnecessary wars, and there cannot exist a doubt, that we shall draw much more copiously from the po­pulation, the arts, and the funds of Europe, than they will draw from those of the united states.

There exists in the united states one description of private diffi­culties and incumbrances, which must engage the solicitude of eve­ry feeling mind, which, by an examination into the detail and in­terior of our affairs, has been led to observe them. The cases allud­ed to are those of the citizens of two or three of the states, who are burdened with heavy debts or claims, which originated before the revolution. Whatever they may be finally adjudged to pay, the sum must be so great, and due from so many persons, as to give it the resemblance of a public debt: and as in one of those states i [...]as already occasioned some sacrifices of their principal landed estates, very far below their value, so it will probably operate in the others, unless some extensive means, abundantly adequate to the occasion, can be brought to operate, before or at least at the time of executing the judgments of courts, which may be obtained. No resource, competent to the purpose, appears at all likely to pre­sent itself, unless it be the funded debt or stock of the united states and of the several states. The method by which this description of [Page 33]property can be rendered most immediately and effectually subser­vient to the interesting purpose of preventing the destruction of many families, would seem to be the fixture of it at a stable unfluctu­ating rate, adequate to its proper value, under the existing circum­stances of the united states. It is manifest, that in such a state of the market, the dealers in the debt and others would sell out, and would not buy in again, and that they would seek objects for their money in the trade, the manufactures, the buildings, and the lands of the coun­try, which might promise them more advantage. A tenth part of the value of the public debts, applied to the lands of the united states, would raise them every where to their real value, so that the debtor who might be under a necessity to sell an estate, could dispose of his property not only without a ruinous sacrifice, but probably to uncommon advantage. The proprietors of lands and buildings which might be under this probability of sale, would sustain no risque or injury in selling their estates for the public stock.

It may be alleged, that the holders of the debt will not go into [...]cenes so remote to make investments: but there are facts, which appear to warrant a different opinion. The funds of New-England have been brought into Pennsylvania, for investment in lands of several kinds—the money of Pennsylvania and Delaware has been invested in mills and lands in Virginia—the greater part of the iron­works of Maryland (the most costly estates in our country,) were bought and worked by the capitals of residents in Great Britain be­fore the revolution. The same fact existed in one great instance in New Jersey. The greatest cedar swamp, on the waters of the Delaware, that supplies the Philadelphia market, is owned in New England; and people and vessels from that quarter, are annually sent to perform the business of it. The American public creditors, citizens of the unit­ed Netherlands, have recently purchased eight hundred tracts of land in a part of Pennsylvania, further from Philadelphia than the banks of James's River, York, or Rappahannock. In short, if the history of this country were examined, as it regards this subject, it would de­monstrate, that the landed property of it has been constantly ani­mated by the application of the monies of distant capitalists.

FROM THE AMERICAN MUSEUM. Reflexions on the state of the union.
NUMBER V. Concerning the foreign debts of the united states.

AT the commencement of the present government in 1789, the united states were indebted to France, Holland and Spain, and to the foreign officers of the late army, in a sum amounting to near twelve millions of dollars. Near a million and two thirds of this sum, was due for arrears of interest, inattention to which, would have been too disgraceful to have admitted of a hope of public credit, until measures were taken for its discharge. Above a million and one third of the principal sum had become due, and the time of other installments was coming round. The resources of the country had been examined and considered, but not tried. The claims of these foreign creditors, were, originally, the most delicate in themselves; and in the case of France, the state of her revolution in the summer of 1790, placed her demand in a situation peculiarly interesting. It was perceived that the adoption of the fe­deral constitution and the measures taken to restore public credit, had made strong and favourable impressions on the European money lenders: and it was not doubted, that the arrears of interest and the principal due, might be discharged by loans, upon terms which would produce very little loss. The requisite authorities were given by the legislature, which resulted in the borrowing of a sum equal to the discharge of all the exigible debt. But as the occa­sions of the French were likely to be emergent, and there was rea­son to conside, that a firm and steady pursuit of the financial sys­tem, which had by that time been adopted, and an adherence to the upright spirit of the constitution, would rapidly meliorate the cre­dit of the united states, it was deemed expedient to extend the au­thorities to borrow, to a sum equal to the whole of the foreign debt, provided the installments not due could be discharged by means of loans advantageous to the united states. The interest of above seven millions of the foreign debt, being at the rate of five per cent per annum, it was not doubted, that the money might be obtained so as to render the discharge of the part, not exigible, re­ally advantageous. It has accordingly happened, that a sum adequate to the principal and interest due, has been borrowed within the terms of the law, so as to support the credit and good faith of the united states, and critically to accommodate the people of France. The further expectations of congress have also been fulfilled; a considerable loan at four and on half, and two loans at four per cent, having been effected, so as to realize an advantage in the discharge of a large part of the principal, which was at an interest of five per cent. The united states having thus com­muted their foreign debt, further than is due, with honour, and, on a medium of the whole, with advantage, are relieved by these operations from any possibility of pressure to perform the re­mainder of their European engagements. The friends of our pub­lic credit, of our national safety and respectability, and of the re­volution [Page 36]of France, among the citizens of the united states, will reflect upon this actual course of events with cordial satisfaction.

The conclusion: being miscellaneous thoughts on the government.

The people of the united states enjoy a peculiar felicity in the possession of principles of government and of civil and re­ligious liberty, more sound, more accurately defined, and more extensively reduced to practice, than any preceding republicans. There is not one iota of delegating or delegated power, which is not possessed, or may not be acquired by every citizen. It is true, that there are in practice, several deviations in the distribu­tion of powers to the various subdivisions of the country, and to the proprietors of certain descriptions of property; but these are acknowledged departures from principle, and are known to have arisen out of the antecedent state of things. They could not be immediately corrected without violent struggles and disorders, and without injury to the property of descriptions of citizens, too great for the country at any former period to compensate. Mild remedies are, however, daily applied to these partial diseases; and it is manifest, that the course of time is diminishing, and will finally remove them. The right of legislative interposition, on the part of the chief magistrate, which, in the practice of another country, has been commuted for an unlawful and inju [...]ous influ­ence, is here wrought into the essence of the constitution, and is not only exercised in the independent and uncontrouled considera­tion of every resolution and bill, but by the practical application of the negative.

The execution of the office of the chief magistrate has been at­tended through a term of almost four years with a circumstance, which to this nation and to the surrounding world requires no commentary— a native citizen of the united states, elevated from private life to that station, has not, during so long a term, appointed a single re­lation to any office of honour or emolument.

The senatorial branch of the government has been created and continued in a mode preferable to that which is pursued in any other nation.

The representative branch is equally well constituted.

The military code, for the government of such troops as are oc­casionally raised and employed, is well calculated to produce dis­cipline and efficiency, when time is allowed for the purpose, and consequently to render the united states respectable in the eyes of foreign nations.

All christian churches are so truly upon an equal footing, as well in practice as in theory, that there are and have been in the legis­lative, executive, and judicial branches of the general government, persons of the following denominations—episcopalian, presbyte­rian, independent or congregational, quaker, Lutheran, reformed, Roman, and probably others, which do not occur. There have been, and indeed yet are, a few ecclesiastical distinctions in the state governments, which reason and time are rapidly destroying. It is easy to perceive, that religious liberty, supported by the national constitution, and a great majority of the state constitutions, cannot but attain, in a very short time, the same theoretical and practical perfection in the remainder, which it has acquired in them.

[Page 37] The independency of the judiciary, as well in the tenure of their stations as in the permanency of their compensations under the fede­ral constitution, and most of those of the states, is an advantage over the ancient republics and the generality of modern governments, of inestimable value in regard to liberty and property.

The united states, being without transmarine or separated domi­nions, are exempted from two inconveniencies, which have result­ed from them. An immense naval force has been found necessary to defend such territories, and protect the trade with them in time of war, and the difficulty of devising for them a free legislation, has hitherto proved insurmountable. The British nation declared, that they had a right to legislate for their colonies and dominions in A­merica, Asia, and Africa, in all cases whatsoever, and the revolution of the united states, turned upon that cardinal point. When we observe, that the French nation, devoted as they are to the pursuit of liberty, have not yet been able to devise any system of govern­ment for their colonies without a dernier resort to the legislature of France, it will be a source of comfortable reflexion to the friends of free and efficient government in these states, that we are not per­plexed by the necessity of so delicate, important, and difficult an operation.

It has been unfortunate for most nations, as well ancient as mo­dern, that they have had no settled pre-existing mode of altering, amending, or renovating their political system, to which they could resort without a deviation from the legal course of things, hazard­ing the public tranquillity, and often freedom itself.—It is equally happy for the people of the united states, that in their federal go­vernment, and in most of those of the states, there exists a provi­sion, by which those necessary and desirable ends may be obtained, with whatever zeal, without recurring to irregularity or violence. Fundamental principles being already settled by common consent, and being duly recorded in the constituions, the people cannot long mistake the nature of a measure, a law, or a political maxim, which is really opposed to them; and when their judgment is decided upon any one or more derelictions of those principles, of magnitude sufficient to induce an effort for reform, their will can­not be successfully resisted. The consequence of this state of things will be, that the mass of error will not easily accumulate so as to become insupportable, being kept down by these orderly natural exertions of the community to relieve themselves at an earlier stage of inconvenience. Too great a facility to change would, however, be likely to produce fluctuations, injurious to order, peace, proper­ty, and industry, if not to liberty itself: but as the mode of per­forming the amendatory or alterative operations is slow, and conse­quently deliberate, light or dangerous changes would be very dif­ficult to accomplish. In this view there appears to be very little probability, that changes from free or representative government, will take place, or that any modification of hereditary power will be introduced into the governments either of the states or of the union. The people will never deliberately consent to the abroga­tion of those clauses in the several constitutions, which explicitly provide both in general terms, and in particular detail, for free or republican government: nor does it seem easy, considering the de­gree [Page 38]of perfection we have obtained and the constant and mode­rate operations of the amendatory clauses, to accumulate sufficient public evil or grievance to produce one of those convulsions, which the ambitous are wont to seize as the moment to introduce by force, a despotic government. Even local circumstances conspire to favour the permanency of liberty in these states. Being too remote from any foreign nation, to render a war, requiring a great army, at all necessary, that instrument, so often used by ambitious leaders, is not likely to be placed within the reach of the enemies of free­dom, while the union remains entire. It is worthy of the most parti­cular observation and remembrance, that a dissolution of our go­vernment would immediately open a door to this danger, as the se­veral states or little confederacies, would each deem it prudent to maintain a larger army than is now requisite for the whole. The history of Greece will instruct us that by this, more than by any other possible measure, we should be prepared for the military do­mination of some modern PHILIP, or some new ALEXANDER. A strong union and a tranquil liberty would be miserably exchanged for such a state of things

It is an evident truth that the penal laws of these states, have been gradually mitigated since the epocha of their independence; and it is no less true, that the number of crimes does not bear so great a proportion to the population, as was formerly the case, though an universal relaxation of the police took place in the late war. It is, perhaps, an ill symptom of the state of things, in a society, when mild laws, strictly executed, are incompetent to the pre­servation of order and public happiness. Our penal codes are, upon the whole, among the least sanguinary; and it is believed, they are not cruel, even in those unhappy cases, which impel the commu­nity to extremities. The constitution of the united states has ex­tracted all the gall from the punishment of offences against the na­tional safety, by correcting the power of legislating concerning them with a mildness unknown to the systems of most countries. It is honourable to the humanity and magnanimity of the Ameri­can people, that this proceeding flowed from them, almost unani­mously, four years after the revolution war. Future ages will do jus­tice to a nation capable of such an effort at a moment so particular.

Taking the united states at large, there are few or no coun­tries in which, at this time, the just demands of private creditors can be obtained by a more certain, a more expeditions, or a [...] expensive course of legal process. There are some local, and a very few general defects yet existing; but they are vanishing before the spirit of the general and most of the state constitutions. There is no part of the public conduct of this country more striking than the firmness with which they have applied the caustic to some inve­terate cancers, which had been derived to their pecuniary system, principally from adventitious causes. It proves the existence of that virtue and fortitude, which qualify a nation for republican go­vernment. There are some exceptionable circumstances, yet to be done away; but the successful efforts, which have been made, justify a confident expectation, that they will yield ere long to the powers and influences which have eradicated much greater evils of the same kind.