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Executive. To what extent this may be pressed, will depend on the events which will happen.

The diversion of this money from it's legal appropriation offers a flaw against the Executive which may place them in the wrong. II. The Second Principal question is Whether and How far we may undertake to pay in advance of the exigible part of our debt to France?

The law authorizes the President to pay the whole, if it can be done on terms advantageous to the U. S. Yet it is left discretionary in him, and the point of discretion is the one to be considered.

Before a judgment can be formed as to future payments, it seems necessary to disentangle the Foreign from the Domestic fund, that the balance of the former may be known, and in hand, to be operated on.

This done, we shall see our way clear to judge When & to What extent to open a new loan.

The annual instalments & interest will, for some years to come, be between 5 and 600,000 Doll.

Perhaps it may be found no bad rule (subject however to the circumstances of the time) to borrow the preceding year what is to be paid the next, & to pay as fast as we borrow.

This will keep us part of a year in advance, will be grateful to our creditors, & honorable to ourselves.

Circumstances may arise which may render it expedient to borrow and pay faster, perhaps the whole.

The state & prospect of things in France at the time will materially influence this question.

CIRCULAR LETTER TO FOREIGN MINISTERS.1

PHILADELPHIA Feby 13, 1793.

SIR, The House of Representatives having referred to me to Report to them, the nature and extent of the privileges and restrictions on the Commerce of the United States with foreign

1 This letter was sent to Ternant, Van Berckel, Hammond, and Viar and Jaudenes. Each letter was accompanied by a note on the commerce of the diplomat's country, and were as follows:

nations, I have accordingly prepared a Report on that subject. Being particularly anxious that it may be exact in matters of fact, I take the liberty of putting into your hands privately and informally, an extract of such as relate to our commerce with your nation, in hopes that if you can either enlarge or correct them you will do me that favor. It is safer to suppress an error in its first

France receives favorably our Bread-stuff, Rice, Wood, Pot and Pearl ashes.

A duty of 5. Sous the kintal, or nearly 41⁄2 Cents, is paid on our Tar, Pitch and Turpentine. Our Whale Oils pay six livres the kintal, and are the only foreign whale oils admitted. Our Indigo pays 5. Livres the kintal, their own two and a half: but a difference of quality, still more than a difference of duty prevents it's seeking that market.

Salted Beef is received freely for re-exportation; but, if for home consumption, it pays 5. Livres the kintal. Other salted provisions pay that duty in all cases, and salted fish is made lately to pay the prohibitory one, of 20 Livres the kintal.

Our Ships are free to carry thither all foreign goods, which may be carried in their own or any other vessels, except Tobaccos not of our own growth; and they participate with theirs, the exclusive carriage of our whale oils.

During their former government, our Tobacco was under a monopoly, but paid no duties; and our Ships were freely sold in their ports and converted into national bottoms. The first national Assembly took from our Ships this privilege. They emancipated Tobacco from it's monopoly, but subjected it to duties of 18 Livres 15 sous the kintal, carried in their own vessels, and 25 Livres, carried in ours; a difference more than equal to the freight of the article.

They and their Colonies consume what they receive from us.

France by a standing Law, permits her West India possessions to receive directly our vegetables, Live Provisions, Horses, Wood, Tar, Pitch, and Turpentine, Rice and Maize, and prohibits our other Bread stuff: but a suspen_ sion of this prohibition having been left to the colonial Legislature, in times of scarcity, it was formerly suspended occasionally, but latterly without interruption.

Our Fish and salted Provisions (except Pork) are received in their Islands, under a Duty of 3 Colonial Livres the kintal, and our vessels are as free as their own to carry our Commodities thither, and to bring away Rum and Molasses.

The United Netherlands prohibit our pickled Beef and Pork, Meals and Bread of all sorts, and lay a prohibitory duty on Spirits distilled from Grain.

conception than to trust to any after correction; and a confidence in your sincere desire to communicate or to reestablish any truths which may contribute to a perfect understanding between our two nations, has induced me to make the present request. I wish it had been in my power to have done this sooner and thereby have obtained the benefit of your having more time to contemplate it :

All other of our productions are received on varied duties, which may be reckoned on a medium, at about 3 per cent.

They consume but a small proportion of what they receive. The residue is partly forwarded for consumption in the inland parts of Europe, and partly reshipped to other maritime Countries. On the latter portion, they intercept, between us and the consumer so much of the value as is absorbed by the charges attending an intermediate deposit.

Foreign goods, except some East India Articles are received in the vessels of any nation.

Our ships may be sold and naturalized there, with exceptions of one or two privileges, which scarcely lessen their value.

In the American Possessions of the United Netherlands, and Sweden, our vessels and produce are received, subject to duties, not so heavy as to have been complained of.

Great Britain receives our Pot and Pearl Ashes free, while those of other Nations pay a duty of 25 / 3d the kintal. There is an equal distinction in favor of our bar iron; of which article, however, we do not produce enough for our own use. Woods are free, from us, whilst they pay some small duty from other Countries. Indigo and Flaxseed are free, from all Countries. Our Tar and Pitch pay 11d sterling the Barrel. From other alien Countries they pay about a penny and a third more.

Our Tobacco, for their own consumption, pays 1/3 Sterling the pound, custom and Excise, besides heavy expenses of collection; and rice, in the same case, pays 7/4 Sterling the hundred weight, which, rendering it too dear as an article of common food, it is consequently used in very small quantity.

Our salted fish, and other salted provisions, except Bacon, are prohibited. Bacon and whale oils are under prohibitory duties: so are our Grains, Meals and Bread, as to internal consumption, unless in times of such scarcity as may raise the Price of Wheat to 50/. sterling the quarter; and other grains and meals in proportion.

Our Ships, though purchased and navigated by their own subjects, are not permitted to be used, even in their trade with us.

While the Vessels of other nations are secured by standing Laws, which cannot be altered but by the concurrent will of the three Branches of the British legislature, in carrying thither any produce or manufacture of the Country to

but circumstances have retarded the entire completion of the report till the Congress is approaching its end, which will oblige me to give it in within three or four days.

P. S. The Report having been prepared before the late diminution of the duties on our tobacco, that circumstance will be noted in the letter which will cover the report.

which they belong, which may be lawfully carried in any vessels, ours, with the same prohibition of what is foreign, are further prohibited by a standing law (12. Car. 2. 18, § 3,) from carrying thither all and any of our domestic productions and manufactures. A subsequent Act, indeed, has authorized their Executive to permit the carriage of our own productions in our own bottoms, at it's sole discretion; and the permission has been given from year to year by Proclamation; but subject every moment to be withdrawn on that single will, in which event, our vessels having anything on board, stand interdicted from the Entry of all british ports. The disadvantage of a tenure, which may be so suddenly discontinued, was experienced by our merchants on a late occasion, when an official notification that this law would be strictly enforced, gave them just apprehensions for the fate of their vessels and cargoes Dispatched or destined to the Ports of Great Britain. It was privately believed, indeed, that the Order of that Court went further than their intention, and so we were, afterwards, officially informed: but the embarrassments of the moment were real and great, and the possibility of their renewal lays our commerce to that country under the same species of discouragement, as to other Countries, where it is regulated by a single Legislator; and the distinction is too remarkable not to be noticed, that our navigation is excluded from the security of fixed Laws, while that security is given to the navigation of others.

Our Vessels pay in their ports 1/9 Sterling per ton, light and Trinity dues, more than is paid by British ships, except in the port of London, where they pay the same as British.

The greater part of what they receive from us, is re-exported to other Countries, under the useless charges of an intermediate deposit and double voyage. From tables published in England, and composed, as is said, from the Books of their Custom houses, it appears that of the Indigo imported there in the years 1773,-4,-5, one third was re-exported, and from a document of authority, we learn that of the Rice and Tobacco imported there before the war, four fifths were re-exported. We are assured, indeed, that the Quantities sent thither for re-exportation since the war, are considerably diminished: yet less so than reason and national interest would dictate. The whole of our Grain is re-exported, when wheat is below 50 the Quarter, and other Grains in proportion.

Great Britain admits in her Islands our Vegetables, Live Provisions, Horses, Wood, Tar, Pitch and Turpentine, Rice and Bread stuff, by a Proclamation of

TO THE FRENCH MINISTER.
(JEAN BAPTISTE TERNANT.)

J. MSS.

PHILADELPHIA Feb. 14. 1793.

SIR, It will require some few days yet to estimate the probable calls which may come on the treasury, and the means of answering them. Till which is done a final answer cannot be

her Executive limited always to the term of a year but hitherto renewed from year to year. She prohibits our salted fish and other salted Provisions. She does not permit our Vessels to carry thither our own produce. Her vessels alone, may take it from us, and bring in exchange, Rum, Molasses, Sugar, Coffee, Cocoa nuts, Ginger and Pimento. There are, indeed, some freedoms in the Island of Dominica, but under such circumstances as to be little used by us. In the British continental countries, and in New Foundland, all our productions are prohibited, and our vessels forbidden to enter their ports. Their Governors, however, in times of distress, have power to permit a temporary importation of certain Articles in their own Bottoms, but not in ours.

Our citizens cannot reside as merchants or Factors within any of the British Plantations, this being expressly prohibited by the same Statute of 12. Car. 2, c. 18, commonly called their navigation act.

Of our commercial objects, Spain receives favorably our Bread-stuff, salted Fish, Wood, Ships, Tar, Pitch and Turpentine. On our meals, however, when re-exported to their colonies, they have lately imposed Duties of from half a dollar to two dollars the Barrel, the Duties being so proportioned to the current price of their own Flour, as that both together are to make the constant sum of nine Dollars per Barrel.

They do not discourage our Rice, pot and Pearl ash, Salted provisions, or Whale Oil: but these Articles being in small demand at their markets, are carried thither but in a small degree. Their demand for Rice, however, is increasing. Neither Tobacco, nor Indigo are received there.

Themselves and their Colonies are the actual consumers of what they receive from us.

Our navigation is free with the Kingdom of Spain, foreign Goods being received there in our Ships on the same conditions as if carried in their own, or in the vessels of the country of which such goods are the manufacture or produce.

Spain and Portugal refuse, to those parts of America which they govern, all direct intercourse with any people but themselves. The commodities in mutual demand, between them and their neighbors, must be carried to be exchanged in some part of the dominant country, and the transportation between that and the subject State, must be in a domestic bottom.

See three letters following, and the reports post, for more on this subject.

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