CHAPTER IV.

CONDITION OF AMERICAN SHIPPING IN 1789.

Encouragement of the Several States. The first acts of Congress for the advancement of shipping grew out of the situa tion at the time, in respect to the encouragement of the several States, and likewise recognized the disadvantages and difficulties of carrying on commerce under the hindrances of foreign countries. Concerning State regulations, we find, from the best accessible information, the following

:

New Hampshire: Extraordinary tonnage duty laid on all foreign vessels in 1785. American vessels free. Massachusetts: Extraordinary tonnage duty on all foreign vessels, 1785. American free.

Rhode Island: Tonnage duty on foreign vessels. Connecticut: Tonnage duty on foreign vessels, 1784. New York: Double duties on goods by British vessels, whether brought directly or through other States, 1784. New Jersey: Tonnage duties, no others, 1783. Pennsylvania: Tonnage duties on ships of "treaty nations," 5s. 8d. per ton; on those of other nations, 7s. 6d. per ton. Discriminating tariff duties; on Asiatic goods foreign merchants to pay two per cent. extra; citizens to have a rebate of five per cent.; teas direct from China in American vessels, free, but dutied if brought indirect or by foreign vessels.

Maryland: Tonnage duty on British vessels, $1 per ton; upon French or Dutch, 66 cents per ton. American vessels, free. Delaware Tonnage duties.

Virginia: Tonnage and discriminating duties; on French or Dutch vessels, 50 cents per ton; on British vessels, $1 per ton; American vessels free. Brandy by American or French vessels free; rum by British ships, taxed..

North Carolina: Discriminative tariff and tonnage duties, favoring American vessels.

South Carolina: Tonnage duty, 1s. 3d. per ton; two per cent. ad valorem extra duty on goods in foreign bottoms. Georgia: Tonnage duty, 1s. 8d. per ton on foreign vessels. The discriminating duties of all the States averaged nearly sixty cents per ton. A member from Virginia said, that one dollar per ton on British vessels did not prevent their thronging the ports for cargoes. In several States the protection to American vessels from tonnage duties was inconsiderable. New York and Pennsylvania seem to have had the most effective systems, simply because of the differential duty on goods imported. Only a few other States seem to have perceived the advantage in this. What New York and Pennsylvania might accomplish, however, New Jersey, with her free ports, inclined to prevent. The Southern States had the most use for tonnage, but lacking, as they did, in building and owning power, foreign influence was able to control the carrying, and to reject American vessels, especially in the import trade. In fact, and in sound theory too, the vessels that could secure employment, and make freights going and coming, would be sure to outstay carriers getting freights but one way. British vessels could secure return freights, but American could not in the face of competition. Evidently American vessels when abroad must have a way to get freights homeward, or yield the sea to rivals who could command the preference needed.

The Tonnage of the United States. The Colonies of America, just before the Revolution, had nearly enough shipping of their own to carry on their whole commerce, but during the war they not only wore out, or lost, or had destroyed, a large part of their marine, but owners had become too poor to replace old and lost with new vessels. Still, by 1789, it was estimated that of the 600,000 tons entered in our foreign and domestic trade that year 400,000 was American; 200,000 foreign, the British part, 150,000 tons and increasing. (Accurate returns date from 1793.) On the return of peace, the British established among us merchants, agents, and factors of their own, and put the ships of their own flag into our carrying trade everywhere. Mr. Fitzsimons said in Congress, 1789,

"It is by means of these men, and the capitals of Britain, that we are furnished with vessels for the transportation of our productions [abroad]; it is by this means that almost the whole of our trade is carried on in some States."

Of the foreign nations besides the British in our commerce, the French, Spanish, and Dutch only need be mentioned. Their tonnage was small. In a few years other flags came in.

The tonnage of vessels entered in the foreign trade of the United States, for the years named, was as follows: (2)

While foreign vessels ran freely in our coastwise trade before the act of July 20, 1789, they abandoned it afterward, and clung only to the foreign trade, but in this they did not thrive. The operation of the act cited caused the increase of shipping to be American. The following table from " American State Papers" gives an interesting view of the commerce and navigation of the several States in the first four years of our history, all the tonnage being American, the fishing fleets, mostly belonging to Massachusetts, not included — and these increased 250 per

cent. :

THE TONNAGE OF THE DIFFERENT STATES.

(3) Statement of the tonnage on which duties were collected during the years 1789, 1790, 1791, and 1792 - fishermen omitted.

To find the ratio of growth in the foreign trade, we may assume that the year 1789 had equal monthly entries. Five and one third months aggregating 123,893 tons, the whole year would aggregate 278,904 tons, and the three years' gain would be 132,534 tons, or 47.4 per cent. Handling the foreign tonnage in the same way, the figures to start with would be 248,700 tons, and the gain over 10 per cent. But in the years following foreign tonnage lost heavily, notwithstanding its advantages, such was the success of our shipping legislation in minimizing them.

Scope of our Carrying Trade in 1789. After the peace of 1783, Great Britain determined to prevent, if possible, the attainment of shipping or commercial power by the United States. She refused to make any commercial treaty with us, and discouraged us in many ways. Respecting this I quote from Congressional speeches in 1789. Mr. Fitzsimons, of Pa., said: "Let us now proceed to ascertain what is the difference between the regulations of France and England relative to the commerce of this country. Into the ports of Great Britain an American vessel can bring the produce of the United States, but nothing else. Our ships paid no more duties on such articles than if imported in British bottoms, except what was for the support of lights; but this in some cases falls pretty heavy, but it is no more than all other nations have to pay. In the ports of France an American vessel is admitted nearly on an equal footing with the vessels of their own subjects. The ships of this

country sold in France are entitled to all the privileges of Frenchbuilt ships, in the Colonial trade as well as any other. Our ships may be sold in England also, but they cannot be employed in her Colonial trade, consequently the price must be lessened by the restriction of their use. In the West India Islands, American vessels are not permitted to enter, but ships belonging to the subjects of Great Britain may carry any of our produce to any of those places; there is no prohibition in this respect. In the French West India Islands, American shipping is admitted indiscriminately with their own, but then the articles which are allowed to be carried there are few and of little value; they are lumber, live stock, and fish; the latter subject to a heavy duty.

To some States it is highly beneficial that their productions should be carried off to the West Indies, although in British bottoms; but then it ought to be remembered that the articles calculated for the consumption of the Islands are of such a nature that they cannot be obtained elsewhere; so that it may be fairly inferred the admission of them is not intended as a favor to America."

In another speech he remarked:

A Change in the Channels of Trade. "One effect of the late glorious Revolution was, to deprive the merchants of America of most of the channels of commerce which they had before pursued. This circumstance obliged them to search for other sources to employ their vessels in. It had been discovered that a lucrative trade could be carried on in the East; the merchants have gone largely into it; and it at present gives employment to some thousand tons of American shipping and seamen; our success has been so great as to excite the jealousy of Europe; and nothing is left undone to cramp or prevent our commercial operations in that quarter. The Legislature of Pennsylvania, impressed with the importance of the subject, had granted it aid,' by discriminating in the manner he proposed to the committee; and with the like aid from the Government of the United States, the merchants may no longer fear the machinations of the opulent companies in Europe, who are unwilling to let us partake of a trade they have so long had a monopoly of. Already the trade to India has had a very happy effect in favor of our inhabitants, by reducing commodities brought from thence to one half of their former price, and yet a sufficient profit is left to enable those concerned to carry it on with advantage." 1

Our strong and helpful friend in closing the contest for Independence was France. We had a treaty of alliance with her, and expected much from her liberality in respect to navigation. It was thought desirable to favor the French in fixing our duties on tonnage. The situation was thus described by Mr. Madi

son:

1 The first voyage of an American ship - "The Empress of China". was made to Canton in 1781. In 1789, fifteen of our ships arrived there.