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Unless the capitalist is protected against considering; that a country shall produce the foreigner, he will not lay out his wealth more than is necessary for its own conto the advantage of the country in which sumption ere it can become rich by a comhe is; he will spend his surplus in the pur merce with foreign nations, and that the chase of foreign luxuries and conveniences, greater its home production, the more cerwhich the poor man, having no employment tain, and extended, and profitable will be to which he can turn his hand, that will its foreign commerce. The prohibition, yield him any profit, contents himself with by tariff, of a foreign manufacture, in such cultivating a small farm, just sufficient for a country as ours, creates a bome manufachis own maintenance and that of his fam ture of the same. By the introduction of ily. As soon, however, as the capital of this new species of industry, either a new the wealthy is forced to remain at home, population is introduced from abroad, inand employ itself for the benefit of home creasing the market of the agriculturalist, industry, a positive increase begins to be or the same number of persons is withperceived in the productive power of the drawn from agricultural and other occupacountry ; population increases with greater tions, leaving of course a smaller number rapidity; a distribution of employment engaged in these, and consequently securensues ; numbers engaged in agriculture, ing to them not only a larger market, but quit that employment for manufacture ; the a larger profit in that market. If one man consequence being that those who remain supplies an entire village with food produupon their farms find themselves able to ced upon his own land, he will become the produce more, and at better prices. The dis- most important man in it, and other things tribution of employment tends invariably to being equal, the wealthiest. The smaller the the increase of productive power and of pro- proportion of population engaged in agriculduction. Every new mode of industry, which ture, other things being equal, the larger makes the proportion of agriculturists or the profits of the agriculturalist ; indeed, food producers smaller in proportion to the nothing could be a greater proof of the stuwhole, augments their profits, and gives pidity and dullness of the agricultural pothem opportunities of disposing of a larger pulation generally, than their opposition to surplus. Let us imagine a community the introduction of manufactures. By the composed of one thousand men, with their most stupid jealousy they mar their own families, employed in agriculture. They pro- fortunes. duce enough for themselves and their fam The ability to export will be measured ilies, and, having no market, their wealth by the ability to produce ;* the ability to does not increase; add to that community produce will depend upon the variety of a thousand more, with their families, em- occupation assisted by the economy and ployed as artizans, in various trades, that industry of the population. An economicommunity will shortly become rich. The cal and industrious population, working at agricultural part of them have found a a variety of employments, will produce market for their surplus, and the artizans everything out of the earth, in such a counat the same time, have found a market for try as ours, (that is to say, if they are well their wares. A healthy man is always able protected,) everything that is necessary to produce more than is enough for his own for sustenance, clothing, and habitation. immediate necessities, in any occupation; For these purposes they will require no and therefore it is that free and orderly foreign assistance. The raw material of communities become wealthy when a mar- iron and steel, of copper, zinc, tin, and ket is opened to them for a sale for the lead, and other valuable metals used in the products of their industry.

arts ; every species of timber ; every maWe have said that the commercial pow- terial used for the manufacture of clother of a country depends upon two circum- ing, rough cloth, cordage, and felts ; every stances; that the first of these is its abil- kind of grain and serviceable fruit, all ity to produce, and the second its ability to kinds of animals employed in the economy command a market; for the first is need of the farm,—there is, in short, nothing ed an industrious and frugal population; that can be esteemed absolutely necessary for the second, a naval armament; but it is the first necessity that we are at present First shown by H. C. Carey.

to a civilized existence, which is not easily | tion, but to legislate for the good of the and abundantly procured in the temperate people--for the good of the greatest numclimate of the North American Continent. ber. If every want of the people, nay every The ability to export is measured by the comfort, is not fully and effectually pro- ability to produce a surplus for exportavided for, it is because of some serious er tion ; it is also measured by the value of ror, or some wilful perversion in the mind that surplus. If it is the raw material, the of the governing power ; that is to say, of ores of metals, the first substance of cloth, that portion of the people who make gov- or the like, it is not, and it never will be a ernment and its offices their peculiar care ; profitable exportation: the risk and the exto which may be added, those whose fortune pense of its conveyance will fall upon the or whose ability gives them power over the producer ; that this is the fact may be easiprejudices of that nameless multitude ly shown from the history of the cotton whose opinions are all prejudice.

trade. It has been demonstrated, in the When every thing has been produced and previous number of this journal, that the wrought up-when the last degree of value expense of exporting the raw material of has been communicated by agriculture and manufacture is far greater, in proportion to manufacture to the material which the its value, than the expense of exporting the earth offers to the industry of man-when manufactured article. The expense of the iron has been wrought into steel, and transporting a rod of iron worth only one the steel into implements—when the wool, dollar is greater than the expense of transthe flax and the cotton have been made in- porting a case of surgical instruments worth to cloth, and the hemp into cordage—when one hundred dollars, and so of other artithe copper and its kindred metals have cles; the higher the value communicated been wrought up into utensils and orna- to them by the industry of artizans, the ments; in short, when every possible value | less the expense to the producer and manhas been communicated to the raw material ufacturer of bringing them to market. —when the home market is supplied with Because the supply in general exceeds these, it then becomes advantageous to a the demand, or very nearly equals it in most country to export its surplus to foreign coun- branches of trade, the producer is contintries, and not before. During the famine ually seeking a market ; that is to say, the in Ireland, two years ago, grain was exported commerce of the country is eagerly and from Cork and from Dublin; that exporta- assiduously extending itself, seeking new tion, although profitable to the merchants customers in every quarter of the globe, who engaged in it, was injurious to Ireland. and sending out ships of war to establish The exportation of food from England at the its markets in foreign ports, to open new present time, to a country where food hap- channels of commerce with barbarous napened to be dearer than in England, might tions—to negotiate treaties for the advantage indeed bring fortunes to a few grain pro- of home industry, and sometimes to make ducers and exporters, but it would be highly conquests for the establishment of mercaninjurious to the English artizan who starves tile colonies. when grain rises beyond a certain price. It is thus absolutely shown by the conPolitical economy, after the school of Mal- duct of all trading nations, from the earlithus and Ricardo, regards all laws against est periods of time, that it is, in general, the exportation as a mere absurdity—as con- producer and the manufacturer who bear trary to the laws of trade-as an interfer- the cost of transportation, who send out ence with the natural and indefeasible right their products in their own ships, and defend of free trade. Humanity and common their commerce by expensive naval armasense may sometimes, it seems, array them- ments. That it is on the producer that selves against our political economists; a all risks fall, or if not all, the greater part prohibition of exportation may sometimes of risks, may be seen in the trade between be absolutely necessary to the safety of a any manufacturing town and its neighborpeople, and so may a prohibition of impor- ing great city, to which it sends its mertation. The rule of common sense and of chandize. It is chiefly the manufacturer true statesmanship is to legislate, not from who loses, and not the commission mera theory, either of free trade or of protec-chant, by fluctuations of the market. It


is the miller who loses by a fall in the price | America, who have engaged in the producof flour, and behind him the farmer in tion of grain for the European markets. whose hands the miller's notes are pro- An unusually fine harvest in France and tested.

in England will have the same result. Fifty The commerce of a country depending millions of English capital turned into the on its ability to produce and its ability to improvement of agriculture in that country command a market, successful and profita- and in Ireland, as two years ago it was ble commerce will be that which commands turned into rail-roads, and before that into the widest and the most universal market; cotton mills, would have the same result. that can send the same cargo to many dif- It is clear that this trade in bread-stuffs is ferent ports; that has its choice of markets, subject to the most alarming contingencies; and is not shut up to one or two; it is and it is well known to be the most specutherefore absolutely certain that an expor- lative and irregular department of comtation of grain or of any species of raw material or first product of the earth, can The reason of this latter peculiarity is never be as sure or as safe, or as continu- not to be sought only in the Auctuations of ous and steady, as an exportation of manu a foreign market; we may find it as well in factured articles. When the European the destructibility of the material. A cargo markets are shut, there is no corn trade; of flour cannot be carried across the Equabut the same corn that would have been tor with safety; a cargo of meal is very exported to England, being used for the apt to turn sour before it reaches Liverfood of artizans at home, may be exported pool Another reason is, that the natural in the shape of cloth or cutlery, to almost profit on raw material is necessarily small, any part of the world :* if one market is and that, under ordinary circumstances, the closed, another is opened; if England will food of life cannot be made an article of not receive our cloths, France, or Ger commerce between distant nations. It is many, or Holland, will perhaps receive a dreadful necessity which compels one them; or they can be sent into the Medi- great nation to purchase food of another, terranean, or to the South Sea Islands, or and is always a token of destitution and to South America, or to many

other places;

suffering in the country which receives it. or, if there is no foreign market, they can The commerce of a country is sustained be laid up at home and bide their time. by its productive energy. Not by the richThe expense of their transportation is com ness of its soil, but by the productive enparatively small; their durability under allergy, directed by ingenuity and ability, of its climates makes them always insurable; the inhabitants. Its productiveness is measured profits on their sale are the profits of ag- not by the quantity of fruits, grain, ores, riculture on the food which feed the work or other raw material which it produces, men who were employed in making them, but by the value which it has communicaand those upon the ores and other raw ma ted to these raw products previous to their terial, used for the machinery and fabric- exportation. The steel instrument, worth all these profits being concentrated in the one dollar and weighing a few ounces, has manufactured article; a consideration which concentrated in it the value of a bushel of ought to show the agriculturalist that it is corn worth one dollar and weighing many rather a commerce in manufactured articles pounds. The one almost imperishable; which he should support by his vote and saleable in all markets, easily transported his influence, than a commerce in grain. at a very trifling cost, through all climates,

Very slight circumstances occasion an over all seas--the other, occupying a large over production of grain or of raw mate- space, difficult of transportation, destroyed rial of any kind, and for the time, render by a very moderate rise of temperature, or it profitless. The closing of the European by the slightest dampness, saleable only in markets against American bread-stuffs will countries where the poorer class are perishthrow an indisposable surplus upon the ing of hunger. The one, intrinsically hands of the farmer ; a vote of parliament worth nothing, and having all its value imwill ruin the hopes of tens of thousands in parted to it by the ingenuity of artizans, a

thing created out of dirt, and stones, and * H. C. Carey.

rubbish—the rubbish of the ground; the

other an almost spontaneous product of the for the necessaries of life. It is we who earth, requiring but one species of labor for must supply nations inferior to ourselves in its production with but moderate ability, and fortune and ability, with what they need, therefore yielding but little profit to him and they must give us in exchange the who produces it, and still less to him who luxuries which we do not need but only desells it. These are the instances which we sire, and which our superior industry and must look at, and carefully consider, before ability have given us a right to use and to we begin to turn the forces of government enjoy. to the extension of our commerce. We We do not mean to say that commerce must know, before we move in such a mat- must be exclusively for luxuries; the proter, upon what ground we move, and never ducts of other climates : drugs, medicines, suffer our senses to be deceived by the ly- dye-stuffs, peculiar kinds of food which ing arithmetic of statisticians.

grow only in the tropics, certain valuable When our own wants are supplied, the metals, and some manufactures, of an unsurplus of our industry is the material of desirable character to be produced at a profitable coinmerce ; but who would send home ; in short, a vast variety of articles, seed corn to mill?

not properly luxuries, will always furnish The seed corn which we foolishly send out a vast commerce, and open a market to mill, is the raw material of our industry, for the products of our own industry. and the mill is in England. We legislate It appears from all that has been preaway our seed corn—we write, speak, and sented to our view in the course of this vote it away-we deprive ourselves of eve- argument, that the legislation of a country ry opportunity of wealth, of that valuable like ours should be directed not to the promaterial of commerce, that product of the duction of an unprofitable surplus of raw most refined and concentrated industry; material, liable at any moment to be thrown concentrating all that the farmer and the back upon its producers, but to the introartizan can do—we deprive ourselves of this duction and the building up of as many by legislation by a farrago of closet the new species of industry as possible, in order ory supported by a lying statistic, and the that no one department may be overdone, prejudices of the ignorant served up with and that a surplus may be produced that senatorial sophisms.

can be made the staples of a truly safe and The commerce of such a country as ours valuable commerce. must be a commerce for luxuries, and not



It is beginning to be predicted by the some six months ago, has been sold at San more observing class of speculators, that a Francisco for $15,000. At the so called commercial catastrophe awaits those who California prices, the same vessel should are building upon expectations raised by have brought $100,000. One would think the gold of California. We have several that the mere timber would have brought times before alluded to the state of things more money than was given for the vessel. in that country, and have predicted the Startling as the conclusion may appear, we defeat of all extravagant expectations. are compelled to admit that California is The time has not yet come, but it is not destined to have a commerce. Owners probably not far distant. The first symp- of property in California will not invest tom of its approach which we have to no- money in shipping. That department of tice, is the fall in the price of provisions, commerce which is called shipping interest, of clothing, and of shipping, in the harbor may be said in California to have no existof California. We learn that the fine ship ence. Edward Everett, which sailed from Boston The population of California being, as

yet, a small one, not exceeding that of a of 50,000 persons, living at an expense of third rate city, a very moderate coasting something more than $500 a year. Calitrade from South America and the Sand-fornia produces nothing but gold; it must wich Islands, and especially from Oregon, therefore, pay for every thing in gold.* will easily supply it with provisions. A Gold, being the largest commodity in quansingle manufacturing village in New Eng-tity, is cheapened by its own abundance; land could furnish it with clothing. The ard $500 will be found insufficient for the commerce in luxuries will never be large, support of a single adult individual living until its population becomes domestic and by provisions and clothes brought to him thriving. The market is already over across the ocean, stocked with all the necessaries, and many It is certain that far more has been taken of the luxuries, of life. The prices of to California in the shape of clothing, shipmany of these commodities has already ping, provisions, luxuries, and money, than fallen below that which they bear in New has, as yet, been brought out of it in the York, which, considering the prodigious shape of gold. If a California outfit cost cheapness of gold, shows an alarming de- $500, or thereabouts, one hundred men, preciation. When these effects come to going to California, take with them $50,be generally felt and known, commerce will 000; this is $50,000 and the labor and gradually withdraw itself from the ports of enterprise of an hundred men taken diCalifornia, and commodities will have a rectly out of the country where they belong permanent value, measured by the ne- and which they enrich, and transported cessities of the population, the immediate to California.

to California. $50,000, and the labor presence of the precious metals, the mo- of an hundred men, skillfully employed nopoly of the trade, which must fall into in manufactures, or farming, in a civilized the hands of a few adventurers, and the community, would double itself in a few character of the population which, in all years, besides providing subsistence for an gold countries, will be more or less reck- hundred families, creating rich farms and less and unthrifty.

a thriving village, and securing to its owners When the more superficial diggings are and employers all the moral and physical exhausted, and it becomes necessary for advantages and comforts of civilization. several men to combine for the employment Let us see now how this same money of labor and capital in the opening of deep and labor are employed in California. mines, a result which may be expected in There is no combination in California; a few years, it will be found that the price each man is for himself; combination has of labor, always severe in mining, will bring been found to be impossible.

Two or the profits of such adventurers within very three may combine together to work at a moderate limits. Expensive machinery digging, or to speculate in lands, but there will have to be constructed and transport can be no companies, no joint enterprises, ed across the Isthmus, or carried about for the advantage of a number. Of the Cape Horn; salaried gold hunters, engi- hundred men who have taken each a capneers, and miners, will have to be employed ital of $500, and of which they have at a great expense; constant failures, and expended $400 before they arrive in Calia vast waste of labor, will strike away a large fornia, and in such a way that it creates proportion of the profits. In time, a share nothing, yields nothing for themselves or in a gold company in California, will be for their country, but is literally thrown income fancy stock in Wall street.

to the sea, a third, perhaps, or more likely Long before this time the population, a fourth, will find themselves strong enough instead of increasing, may be expected to and possessed of sufficient fortitude to endiminish, having first reached its maxi- gage in mining--a species of toil which is

compared only to stone breaking, well digLet us suppose that the actual proceeds ging, or the laying of heavy walls. Twenof the mines in California amount to about ty-five of the hundred have engaged in this $2,000,000 monthly-$24,000,000 annu terrible labor. Of the remaining seventyally; if the whole sum is expended in procuring food and clothing, it will pay, from

* What have "balance of trade" theorists to year to year, the expenses of a population say to that?


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