Thoughts on the Colonies.
The question concerning luxury leads to the investigation of some ideas on the Colonies; I do not mean that of taxing them, either in a direct or indirect manner, for the reason truly specious, that the wars undertaken for their protection, having loaded the nation with taxes to an enormous amount, it is but just that they should come in for a share of the burden.
It has been observed, that a national debt contracted, no matter for what, occasioning in every thing an indispensable increase of price, the Colonies pay their quota of such a debt (notwithstanding the drawbacks) when they purchase goods at the rate to which the said debt has advanced them: it must also have been noticed, even how necessary it was that the price of commoditiesfrom the Colonies should increase in proportion to the price of those of the Mother-country, in order that the former might be able to answer that advance of prices, without hurting the two essential points, consumption and re-production; whence it follows, that if new taxes are introduced,either directly or indirectly, to defray their pretended proportion in the interest of the national debt, neither harm nor good will result,if the price of their commodities be increased in the same proportion; but that if they be taxed, without that increase in the price of their commodities, they will consume by so much less of national goodsor of foreign ones paid for in national merchandise, that is, to the amount of the sum which the tax shall have taken from them: this point is evident. Thus it is, that after the war in 1755, allEuropewas obliged, as has been shewn, to increase her prices, so as to put them on a level with those inEngland; and had notGreat Britainsubmitted to that reciprocal advance, and all the rest ofEuropecondescended to receive only, for the 13effectivemillions of their own goods, the 13nominalmillions of that quantity ofEnglishcommodities which was worth 14, on account of the taxes only, the nominal million which would have remained in the hands ofEngland, would have been without value,andno longer reproduced for want of consumption, for want of means to pay for it, and to encourage such a reproduction.
I think also that it is useless to examine whether the colonies can add any thing to the real power of a nation, since, in order to be convinced of the very reverse, it is enough to observe, that if 2 or 300 ships mounting from 10 to 120 guns be required, in order to protect effectually an extent of between 1500 and 2000 leagues ofcolonialcoasts, distant 1000, 1500, nay 4000 leagues from the mother-country, the 100,000 men employed in time of war, on those floating citadels, are always furnished by the Metropolis, and do not in any manner exempt her either from erecting those permanent citadels which must be scattered along the coasts of the mother-country, or from providing the number of men necessary to defend them in case of an invasion. In this point of view, the colonies would therefore rather diminish than increase the national power.
On the other hand, experience has just taught us, that as soon as those very colonies, for which it is pretended so much blood has been spilt, and so much money wasted, are in a situationto stand up in their own defence, there is no depending upon them, but inasmuch as they are on the footing of allies; and interest alone fixes the duration of every alliance.
The above three objects deserve not, methinks, any further dissertation: the question that merits a more particular scrutiny, is that which concerns the utility of those very colonies, when their weakness is a pledge of their fidelity.
That utility consists in securing to the mother-country, 1st, an exclusive mart for such goods as she thinks proper to export there; and 2dly, the exclusive sale of the returns, in which, it is said, she finds a compensation for the expence she is at to carry her goods to that market.
I shall investigate, under various points of view, all relative to those two objects, the utility of those colonies whose commerce is fully ascertained, before I speak of any other; and I shall only draw the necessary inferences from the most incontrovertible facts.
1st.
We find in the Statements of SirCharles Whitworth, that the exports fromEnglandto the colonies,whose independence can no longer be disputed, amounted annually, upon a medium of 5 years, taken from 1769 to 1773, to the sum of 2,491,230l.
Now the two wars of 1739 and 1755, undertaken, it is said, for the protection of those colonies, that is,to preserveto the mother-countrythe monopoly of them, have costGreat Britain99,141,625l.; and these 99 millions, though the interest has been reduced as often as possible, still costEnglandannually 3,500,000l.
It is then a sum of 3,500,000l.which, even so early as the year 1762,Englandhad resolved to pay annually, in order to preserve, and the better to secure to herself the exclusive privilege of exporting annually toNorth-America,Europeangoods to the amount of 2,491,230l.
2dly.
The imports from those colonies intoGreat Britain, upon a medium of the said 5 years, did not exceed the sum of 1,208,665l.—Great Britain, therefore, has enjoyed during the space of 5 years, a pretended balance of 1,282,565l.against those colonies;—but is that glorious balanceany thing more than the advantage of having given to those colonies, in the space of 5 years, a credit in the sum of 6,412,825l.supposing that such sum was the amount of her claims in that part ofAmerica, or of the half, if in fact half only of that sum remained due to her, notwithstanding the enormous appearance in SirCharles Whitworth’s Statements?
3dly.
If the colonies, now independent, will henceforth call in all the other nations ofEuropeto a share in the advantage of crediting them in the same manner, can it be supposed thatEnglandwill not find inEurope, some other nation willing to receive that part of theEnglishcredit, which the independent colonies shall no longer think proper to make use of? In this case, can any thing more be required, on the part ofEngland, than to manufacture in less quantity such goods as suit only the inhabitants ofAmerica, and somewhat more of those that may suit the different nations ofEurope; and to this first operation to add the complaisance of receiving a greater quantity of their goods than she has imported hitherto?—In this case likewise, what ruinous consequences couldEnglandexperienceby exporting her goods to her neighbours, instead of sending them toAmerica?
4thly.
If the complaints set up byEnglandagainst the United States, are grounded only on their incapacity of making returns proportionate to the value of the goods exported there since the peace, are the United States to blame ifEuropeancupidity has exported toAmerica, in the space of six months, as much as its inhabitants could consume and pay for in two years? Does such an event, almost infallibly the result of a long interruption of correspondence, prove any thing more than the necessity of a balance between production and consumption, the advantage of knowing as soon as possible the difference from the one to the other, the inconvenience of a trade, in which we lose sight of our capital for whole years together, and the advantage of a trade which would 5 or 6 months after return to the hands of thecapitalistthe stock he had laid out?
5thly.
Had even those colonies remained in, or returned to a state of subjection toEngland, would not the same interruption of correspondence have been productive of the same inconvenience?—Duringthe war, which terminated by the treaty ofAix-la-Chapelle, all theFrenchcolonies had remained under the dominion ofFrance, and yet during all the first, and great part of the second year of peace most of theFrenchgoods were sold atMartiniqueandSt. Domingo, 15 and 20per cent.below the prime cost inEurope;—between dependent and independent colonies, then, in this respect, who can perceive a shadow of difference?
6thly.
If theEnglishmerchants, after having over-stocked theAmericanmarkets withEuropeangoods, have attempted to stripAmericaof the little money she had to boast of, and to leave her goods on her own hands, do the complaints set up inEnglandon this subject, prove any thing essential either toEngland, or to the rest of the world, more than the impossibility of carrying into execution beyond a certain degree, the plan, as destructive as it is absurd, of any other trade but that which is founded on a reciprocity of advantages, onan exchange of the gifts with which Nature and Art have favoured one country, against those with which Nature and Art have favoured another country? And even, upon a supposition, thatAmericashould have returned under the domination ofEngland, if theEnglishmerchants had, in this case, attempted to wrest from her the little money she was possessed of, would not theAmericancolonists have been justified in taking every measure necessary to preserve it?—Would they in enforcing that right have been free from the misfortune, common to mankind, of always doing, in order to guard against an injury, much more than is either just or necessary?—The impossibility of making returns adequate to the extravagant invoices sent by theFrenchtraders to their colonies inAmerica, after the war I have mentioned, determined also the agents of theFrenchtrade to strip those colonies of all the money they could lay their hands upon: no other way to put a stop to that spoliation was left, but to bore in the middle of their dollars a large hole, which restoring the equilibrium between the rapacity of the foreign trader, and the wants of the interior commerce, preserved within those colonies the trifling sum in specie that still remained there. Soon after, the equilibrium was also restored between the imports and the consumption; and from that instant an end was put to the thirst after money, as well as to the necessity of boring the dollars.—What difference then can exist, in this respect also, between a colony and a free State?
7thly.
All the exports fromEnglandto the colonies, the monopoly of which she has preserved by the peace, (including her trade toIndia) amounted, in 1773, to 2,430,420l.(for the details see SirCharles Whitworth). Now the annual expence of theBritishnavy, and its accessaries, considering the increase in that ofFrance, must be, at present, or will be soon, 2,000,000l.May it not be fairly concluded, thatEnglandis about to pay the annual sum of 2 millions sterling, in order to maintain herself in the exclusive privilege of carrying annually to the distance of 1500, of 2000, of 4 or 6000 leagues, the value of 2,432,420l.inEuropeangoods?—And would not that privilege be dearly bought, were notFranceto lay out annually likewise 45 millions of livrestournois, in protecting her privileged exportation?
8thly,
I have at present before my eyes no other standard, whereby to estimate the exportation ofFranceto her sugar-colonies, than that ofEnglandto hers; that exportation amounted, in 1773, to 197,236l.But the population of theFrenchcolonies is far from being in a treble proportion to that of theEnglishcolonies, and luxury is equal in both; yet let us suppose that the amount of the exports fromFranceto her colonies, including those shesends toIndia, be annually 80 millionstournois.—The interest of the national debt inFranceis 202 millionstournois, (seeAdministration des Finances de la France) one half, or rather three fourths of which have been incurred for the protection of her establishments in those parts of the world.—May it not be said, thatFranceis at the yearly expence of 150 millionstournois, independently of the 45 millions for her navy, for the purpose of maintaining herself in the exclusive privilege of exporting every year the value of 80 millionstournois, inEuropeangoods, to her possessions inIndiaandAmerica?
9thly,
All theEuropeanexports, carried byEnglandin the year 1773, either toIndia,Africa, orAmerica, including the exports for which she held an exclusive privilege in the part ofAmericanow independent, amounted to 4,975,192l.we shall say 5 millions:—if you value at 10 millions of the same currency, the exports of all the other nations ofEuropeto those parts of the world, we shall find a capital of 15 millions sterling in goods annually exported fromEurope:—but the yearly expence of a navy, which cannot be dispensed with for the protection of those exports,is valued at 8 millions sterling, 4 of which fall to the share ofEnglandandFrance.
Exclusive of those 8 millions sterling, the interest paid byEnglandto acquire, preserve, and protect that part ofEuropeanexports that concerns her, amounts to about 6,500,000l.including that of the last war; the interest paid byFrance, comes nearly to the same sum; the interest paid bySpaincould not be computed, were the depopulation of that country to be taken into the account; but estimate them at 4 millions, including those which otherEuropeannations have sacrificed to the same Idol: let us say nothing aboutHolland, who for many years (except the few last) has made some figureEurope, only by her good luck in alleviating the distresses of others, her sole motive for which was her own advantage: and we shall sum up, at last, an annual expenditure of 25 millions sterling, in interest and naval expences, incurred byEurope, in order to preserve the exclusive privilege, 1st, of exporting every year 15 millions sterling inEuropeangoods to her colonies, both inIndiaandAmerica; and, 2dly, of establishing in those coloniesthe system of government best calculated to prevent that exportation from becoming more considerable.
10thly,
We have observed, that the exports fromEnglandto the colonies ofAmerica, and toIndia, amounted, in 1773, to 4,900 and some thousand pounds sterling, suppose 5 millions: now her importation of commodities from those various countries is about 5,900,000l.(see SirCharles Whitworth); but we have also noticed, that she left yearly inNorth America1,282,000l.more than she received therefrom. This matter, considered in the most favourable light, that is, as a balance of trade, ought to be added to the former; and the whole together will give us a total of 7 millions, shewing an annual benefit of 2 millions some hundred thousand pounds sterling.
It appears then, that an annual benefit of 2 millions some hundred thousand pounds sterling costsEnglandannually 6,500,000l.interest for her debt, and 2 millions for the support of her navy.
11thly,
We have seen, that the annual and general exportation ofEuropeangoods toAmericaandIndiaamounted to about 15 millions sterling.—If 5 millions ofEnglishexports return no more than 2 millions some hundred thousand pounds annual benefit toEngland, thatEngland, who setsthe highest price on her goods of all kinds, the general exportation of 15 millions, to whichEnglandcontributes only one third, cannot, of course, afford to the whole ofEurope, a profit of above 6 millions and some hundred thousand pounds;—but it seems that a benefit of 6 millions and some hundred thousand pounds is dearly bought at the rate of 25 millions laid out annually byEurope, both in paying the interest of their respective national debts, and for the support of theEuropeannavies designed to preserve, protect, and secure such a benefit.
12thly,
If it were very true, as it is to this day asserted, that those 25 millions of annual and indisputable expenditure, are in reality so many yearly losses to the nations who sustain it, might it not be reasonably concluded, would it not be impossible not to conclude, that all the colonies ofEuropewere established only for her ruin?—If we only attend to the last war, which in fact loads the different nations who took a share in it, with an annual interest of 9 or 10 millions,—9 or 10 millions to be paid every year, partly to preserve the right, partly to obtain the permission of exportingEuropeancommodities into a country, of which the inhabitants, besides their own importation, consume annually to the amount ofonly 2,491,230l.of those same commodities which are exported to them by others—who (to assume the trader’s phrase) cannot clear by that exportation, a greater annual profit than 3, 4, or even 500,000l.! ... it seems indeed that one cannot see without surprise and concern, the shocking disproportion between the end proposed, and the sole means of obtaining it.
13thly,
If, on the contrary, it be true, as I maintain it to be, that after the peace, when a perfect equilibrium is restored to every thing, the 9 or 10 millions interest of the national debt, has no other effect but that ofadding to every thing a nominal value which injures no one, though it may be advantageous to many; a nominal value, which, in every state, proportions itself, first to the sum of its revenue compared to that of its debt, and soon after to the difference which the debt contracted by the nation called the most loaded, and which, in fact, is only the greatest exporter, has produced in that enormous quantity of the goods she exports;—if it appear more reasonable to adopt that idea, than to give up a trade, which, without that very idea, would prove the most absurd, as well as the most destructive that human geniuscould invent, (the alternative seems to be forcibly established);—in this case the regret will be heart-felt, when we consider the loss of men sacrificed during the last war: but if from this general aggregate of truths little suspected, and much less reflected upon, there should result a system of Politics inEurope, of Administration in her different States, of Government in her Colonies, which should procure toEurope, at the least expence, the greatest exportation of that of which she has a superabundance, and the greatest importation of that in which she is deficient ... then indeed, then, might we find consolation for the evil, in adverting to its consequences.—And, upon this principle, what canEnglandhave suffered by losing her sovereignty overAmerica?
14thly,
The contagion of example has been apprehended. Let us suppose the fact. What then would be the loss sustained byEurope? None, I believe, unless the consequence of the general independency of the colonies, should be that they would give upEuropeancommodities they have been used to, and which they can so readily procure by means of a multitude of other articles, which would be of no value to them were they not calculated to procure them thoseEuropeancommodities which they are in the habit of consuming.—But Ibeg leave to ask, what purpose could their independence answer?—It appears to me, they could not think of it without a palpable folly; and that it is impossible they should think of it,without that kind of vexation which brings a man to the necessity of choosing between two extremes.—Another consideration, which tends to makeEuropeeasy, at least in regard to the colonies situated beyond the tropic, is, that no rivalship can subsist between them and their mother-countries in any thing that concerns the soil and industry.
In regard to the productions of the soil, all that part ofAmericainclosed within even the 30th degree of north, and the 30th degree of south latitude, could not yield, without double and treble expence, any thing that can be produced inEurope, and in the other part ofAmerica, from the 30th degree to the pole. And, on the other hand, at what an amazing expence must allEurope, jointly with that part ofAmericanow independent, produce, even in a kind of degradation, what the other part ofAmericayields naturally in the most perfect state!
In regard to industry, can it be feared that theSouth Americans, even supposing them independent, should be tempted to import rough materialsfromEurope, in order to have them wrought byAmerican hands, which are so naturally and so profitably employed in the production of American articles? Is it even to be feared that they should aim at a competition with theEuropeansin the exportation ofAmericanarticles, when they are in need of ship-timber, or rather when in this, much more than in any other respects, there is noEuropeanwork, which, if done inAmerica, would not cost three times as much as when imported fromEurope?—AllEuropeanprejudices, relative to commerce, are founded on the following principle, which may be looked upon as thequintessenceof the Navigation-Act:—To do every thing ourselves, in order that no one’s assistance may be wanted,—that no one may do without our assistance,—and that no assistance be given, but at the prices prescribed by the Lords of the Seas.—The Navigation-Act was, without doubt, the last effort of the human mind about the middle of the 17th century[11].
It seems to me, that the only point which essentially concerns allEurope, in regard to other parts of the world, where she can give law, would be to find outwhat kind of Administration would be the best calculated to increase in all those parts the consumption ofEuropeangoods, and to procure to herself a more considerable stock of foreign goods and products,—which would, as they have ever done, give,either directly or indirectly, a fresh encouragement to her agricultureand manufactures. Let any one examine, whether the utility of the colonies be not strictly confined to this single point.
I speak of allEurope, it is true, as if she formed but one State, whilst she is supposed to exhibit so many interests, and these so very opposite to each other. This question deserves a deeper discussion than I am able to give it; yet I presume to think that the answer I could give, might be susceptible of demonstration, had we, on all the countries inEurope, statements only similar to those which SirCharles Whitworthhas given of theBritishtrade, and were we to add thereto the means and faculties which are to be met with inEnglandof procuring the details and proofs of every particular that concerns the public. Destitute however of an advantage so precious, so worthy of a nation sufficiently enlightened to dread nothing but being left in the dark on any part of her own interests, of a nation judicious enough not to disdain a ray of light, from whatever quarter it may come, and generous enough to perceive, with pleasure, that by enriching herself, she has, to this day, enriched allEurope;—
If it were admitted, that money is only the representation of value; that multiplying thesign, without multiplying the articles which it is calculated to represent, is debasing fruitlessly the representation; and that, on the contrary, multiplying the article is the most infallible means of attracting the sign and keeping it up to its value:
If it were acknowledged, that nothing contributes so much to the multiplying of the articles, as the multiplicity of the channels through which they can be introduced:
If it were acknowledged, that the multiplicity of channels in another nation, for the introduction of our own goods, is necessarily inseparable from the multiplicity of channels opened in our own country for the introduction of foreign goods:
If it were acknowledged, that with the fullest persuasion that money ought to be the sole aim of trade, it has only proved, hitherto, the means of supporting it:
If it were acknowledged, that notwithstanding the prejudices to the contrary, as deeply rooted in the heads of Ministers, as they are in the hearts of Merchants, and notwithstanding all the national cupidities, private interest in all countrieshas always proved sufficient to reject effectually all theuseless, and procure all thenecessarymoney:
If it should result, not from arguments, which very seldom contain what they ought to contain, in order to become uncontrovertible, but from the experience of a whole century, sufficient to estimate the effect of the passion the most ardent, and the most attached to its object, that contrary to the common ideas, and in spite of the general rage for money, the whole of commerce has, to this day, been ultimately confined toits true balance, i. e.to bartering goods for goods, except the little money which is wanted every where, and which has constantly penetrated every where, to answer either to the new productions when they had actually increased in their quantity, or to the advance of prices when the taxes had at last produced every where, and on the generality of prices, their effect, as equitable as it is necessary and harmless:
If the same experience should evince, that the richest individual, or he who becomes such the soonest, has no other advantage in point of commerce, than the choice of the men whom he is pleased to admit to a share of his wealth without impairing it; and that theinference to be drawn therefrom is,that such a man must be a dupe who confines his choice to ten, when he can make it from among thirty:
If it were acknowledged, that riches and ease, like the light, stand in want of no assistance whatever, to propagate themselves equally in every direction,as general interest requires; that the private interest of one man, or of a body of men, is always sufficiently opposed, protected, balanced, by the interest of another man, or of another body of men,wherever administration confines its attention to the maintenance of strict justice and good order; and that from this equilibrium in which they mutually keep, or soon replace one another, there results, for both, the greatest advantage they can hope for, and for the State the highest prosperity it can attain:
If it were acknowledged, that on all these various objects, no difference whatever can subsist between one nation and another:
If it were acknowledged also, that allEurope, as well as each State in particular, is essentially, finally, strictly, composed only of three kinds ofcapitalists, or proprietors, thelanded capitalist, the capitalist of industry, and the proprietor of money, considered either as a dependant or as acapitalist:
If it were acknowledged, that those three interests center in the greatest quantity, as well as the greatest variety and best quality, of the products both of agriculture and industry, and in the greatest consumption of both at the most reasonable rate:
If it were acknowledged, that theFisc, or Exchequer, owes the whole of its revenue to the produce of the taxes only; and that this produce rising of course as the productions and consumption increase, the interest of the Exchequer can no where be different from that of the three capitalists or proprietors:
If it were acknowledged, thatat presentnothing can result from several institutions, pretended very wise, but a great diminution in the products and consumption, as well as in the revenue of the Exchequer; because there is nothing so easy as to balance, every where, institutions pretended very wise, by others not less so:
If it were acknowledged, that thenecessaryexpenditure of the Exchequer once ascertained, all diminution of its revenue, occasioned by the pretended very wise institutions, carries with it the necessity of imposing new taxes, in order to make up thedeficitof former ones:
If it were acknowledged, that each new tax, increasing necessarily the price of every thing in the nation,for the purpose of supporting, at least, the interior consumption, on which depends the discharge of the taxes, would add to the inconvenience brought about by those pretended very wise regulations,and would soon lead to a decrease in the external consumption, which the nation might have preserved, if other countries did not raise their own prices accordingly, in order to pay with the same products the same quantity of articles which they used to take before the advance occasioned by the taxes; that therefore such a general propagation of increase in prices, being of a general interest to the production and consumption every where, would not fail to take place every where as it has always done, and to dwindle again into a childish play, much beneath the adolescence of the age we live in:
If it were acknowledged, that the general repeal of those pretended very wise institutions could, at the worst, be productive of no other effectwithin the State, but that of a general rise in the prices, wherever they are not in due proportion to the real values, and a general fall in all the prices, wherever they are fixed by monopoly, and not by the natural equilibrium; butthat, whereas nothing but profit can accrue to those who raise their prices, it is very probable that the prices would increase much more almostevery where, than they would decreaseany where:
If it were, besides, acknowledged that such an increase, or decrease, (it matters not which) soon becoming general and proportionate, (without any other agent to work that miracle, but that reciprocal pressure which establishes a perfect symmetry in a bee-hive,) then no alteration could arise therefrom in the circumstances of the two essential capitalists, since it is perfectly indifferent whether we purchase the labour of others at 5 or 6per cent.dearer, if we sell our own labour in proportion:
If it were acknowledged, that in regard to the money proprietor,whether dependant or capitalist, nothing can result from it but the certainty of procuring henceforth and for ever, at the most equitable price, that which he had paid for hitherto according to the rate set on it by monopoly, and often by a scarcity cunningly prepared and managed:
If it were acknowledged, thatas to the external interests of the State, no other effect can resultfrom the general repeal of those pretended very wise institutions, but the facilitating of all the branches of foreign correspondence, the opening of new channels of consumption, the encouragement of all kinds of production, of which consumption is the very soul, and the power of obtaining every where, at the most equitable prices,by means of competition, the most equitable share we have a right to expect in those gifts which nature, in all probability, has not bestowed on any part of the world, to confine them to that particular spot:
If all the foregoing points, I say, were acknowledged, it would be a hard matter to conceive that there is, not only inEurope, but all over the globe, any other enemy to destroy but Monopoly, or any other interest to favour but Labour.