CHAPTER VIII.

DEBATE UPON MADISON'S RESOLUTIONS, 1794.

Sequel of Jefferson's Report. Perhaps no report of a cabinet officer to Congress ever stirred that body more thoroughly than that of the Secretary of State in 1793. It was, indeed, well calculated to induce a determination to have justice for our citizens, and fair play for their commerce and navigation. These were increasing in moment, but not at the pace possible, nor with the certainty desirable. In four years our tonnage entrances, in the foreign trade, had grown from 123,893 tons to 367,734; and our share of carriage had increased from 30, or less, to 77 per cent. in export trade; and from about 18 to 82 per cent. in import business. But our utmost legislative encouragement had not been given. It was difficult to convince many members of Congress that greater good was not attainable, were justice to be done. Old oppressions seemed cast off for new. On the other hand, we had conservatives with abundant patience, who contented themselves with moving slowly.

Views of Thomas H. Benton. In his work on the "Debates of Congress," in regard to regulating our commerce with foreign nations, Mr. Benton thus states his views:

"In the House of Representatives, 1794, occurred one of the most interesting and elaborate debates which our Congress has furnished. It grew out of the clause in the Constitution conferring power to regulate commerce with foreign nations,' and gives the interpretation of its authors, which is wholly different in its nature, and also distinct, from the power to lay and collect import duties. The latter was to raise revenue, the former to make such discriminations in trade and transportation as to Protect our merchants and shipowners from the adverse regulations and devices of our rivals.

"While the lack of power to regulate foreign commerce was a primary defect of the Confederate Government, and the necessity for its exercise so great as to form a chief cause for creating the Federal Government, it is singular that Congress has always overlooked it, or confounded it with the impost or revenue power. Though not now exercised, it is a power which has found a need for its exercise, and will find it again.'

In

Sentiment of the Resolutions. These notable resolves were necessarily aimed at Great Britain, and their discussion for two months did much to endanger our relations with that nation, which, at the time, from other causes, were rather insecure. fact, it was after the great debate started, that Washington thought it prudent to send Judge Jay to negotiate his famous treaty. Its first effect was to modify the shipping situation, and to allay somewhat the resentment of the country. It became desirable, also, to give the British a chance to perform their new covenant - to give up the Western forts, and to cease their encouragement to the savages, for some time past molesting and murdering on the frontiers. The first of the resolutions was adopted, the others were not afterward taken up. With the discrimination which they contained in favor of France, their passage was heavily handicapped. Their sentiment was: "Free commerce is not to be given for burthens and impositions." In other words, if foreign nations, one or more, protect their commerce and navigation, we must then protect our own - equal footing in fact being an indispensable condition for success. This sentiment of the time was well expressed by able debaters. What they contended for is well worth understanding, as we have for many years past given free commerce and unrestricted navigation for burdens, impositions, and even insults, to such an extent that little remains of a wasted marine; and we are compelled to rebuild and reinstate it, either by constitutional regulations, or by questionable taxation.

Mr. Madison's Speech. The House having under consideration the report of the Secretary of State, on the privileges and restrictions of the commerce and navigation of the United 1 The acts of 1818 and 1820 were purely regulations of commerce. "The British Ministry disliked the resolutions and favored this treaty.

States in foreign countries, Mr. Madison made some general observations, and then remarked, that "the commerce of the United States is not at this day on that respectable footing to which, from its nature and importance, it is entitled." He referred to its situation before the adoption of the Constitution, when conflicting systems of encouragement prevailed in the different States. "The then existing state of things gave rise to that convention of Delegates from the different States,1 who met to deliberate on some general principles for the regulation of commerce, which might be conducive, in their operation, to the general welfare, and that such measures should be adopted as would conciliate the friendship and good faith of those countries who were disposed to enter into the nearest commercial connections with us." "But what has been the result of the system which has been pursued ever since? What is the present situation of our commerce? From the situation in which we find ourselves after four years' experiment it appeared incumbent on the United States to see whether they could not now take measures promotive of those objects for which the Government was in a great degree instituted."

Continuing, Mr. Madison read the following resolutions: — Text of the Madison Resolutions. "Resolved, As the opinion of this Committee, that the interest of the United States would be promoted by further restrictions and higher duties, in certain cases, on the manufactures and navigation of foreign nations employed in the commerce of the United States than those now imposed.

"1. That an additional duty ought to be laid on the following articles, manufactured by European nations having no commercial treaty with the United States: ..

"2. That an additional duty of

per ton ought to be laid on the vessels belonging to nations having no commercial treaty with the United States.

"3. That the duty on vessels belonging to the nations having commercial treaties with the United States ought to be reduced to per ton.2

This was the "Annapolis Convention," in point of fact, Mr. Madison's suggestion, as was also clause 3, in section 8 of article 1 of the Constitution - to regulate our foreign trade so as to favor our navigation.

2 Four nations only, at the time, had made such treaties — Prussia, Sweden, France, and Holland.

"4. That where any nation may refuse to consider as vessels of the United States any vessel not built within the United States, the foreignbuilt vessels of such nations ought to be subjected to a like refusal, unless built within the United States.1

"5. Where any nation may refuse to admit the produce or manufactures of the United States, unless in vessels belonging to the United States, or to admit them in vessels of the United States, if last imported from any place not within the United States, a like restriction ought, after the to be extended to the produce and manufactures of such nation, and that, in the meantime, a duty of per ton extraordinary ought to be imposed on vessels so importing any such produce or manufactures.

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"6. That where any nation may refuse to the vessels of the United States a carriage of the produce or manufactures thereof while such produce or manufactures are admitted by it in its own vessels, it would be just to make the restriction reciprocal; but, inasmuch as such a measure, if suddenly adopted, might be particularly distressing in cases which merit the benevolent attention of the United States, it is expedient for the present that a tonnage duty extraordinary only of be imposed on the vessels so employed: and that all distilled spirits imported therein shall be subject to an additional duty of one part of the existing duty.

"That provision ought to be made for liquidating and ascertaining the losses sustained by citizens of the United States from the operation of particular regulations of any country contravening the law of nations, and that such losses be reimbursed, in the first instance, out of the additional duties on the manufactures, productions and vessels, of the nation establishing such unlawful regulations."

Mr. Madison, speaking to these resolutions, said: —

“We should also obtain an equitable share in carrying our own produce; we should enter into the field of competition on equal terms, and enjoy the actual benefit of advantages which nature and the spirit of our people entitle us to.

"It is in the power of the United States, by exercising her natural rights, without violating the rights, or even the equitable pretensions, of other nations by doing no more than most nations do for the protection of their interests, and much less than some, to make her interests respected; for what we receive from other nations are but luxuries to us, which, if we choose to throw 1 We had admitted to registry, as American, all foreign-built vessels owned by citizens on May 16, 1789.

aside, we could deprive part of the manufacturers of those luxuries, of even bread, if we are forced to the contest of self-denial. This being the case, our country may make her enemies feel the extent of her power.'

"The last resolution is in a manner, distinct from the rest. The nation is bound by the most sacred obligation, to protect the rights of its citizens against the violation of them from any quarter; or, if they cannot protect, they are bound to repay the damage."

The Debate ensuing. Ten days later Mr. Smith, of S. C., replied to Mr. Madison and urged conservative views. He said:

"The report of the Secretary of State is now before the Committee. The tendencies of that report (whatever may have been the design of the reporter) appears to be to induce a false estimate of a comparative condition of our commerce with foreign nations, and to urge the legislature to adopt a scheme of retaliating regulations, restrictions, and exclusions." He proposed to compare conditions of commerce with Great Britain, taking France before the Revolution then in progress and our own country at the time of the report. He exhibited a table to show that we were not worse off than France. He protested that "this country is at present in a very delicate crisis, and one requiring dispassionate reflection, cool and mature deliberation.'

Mr. Madison, the day following, answering Mr. Smith, said in part:

"The propositions before the Committee turned on the question whether anything ought to be done at this time in the way of commercial regulations toward vindicating and advancing our national interests. Perhaps it might be made a question with some, whether, in any case, legislative regulations of commerce were consistent with its nature and prosperity. He professed himself a friend to the theory which gives to industry a free course, under the impulse of individual interests and the guidance of individual sagacity."

He was persuaded, it would be happy for all nations, if the barriers erected by prejudice, by avarice, and by despotism were broken down, and a free intercourse established among them. "Yet to this, as to all other general rules, there might