Industries of the United States (1793)

BY TENCH COXE

THERE is no land tax among the national revenues, nor is there any interior tax, or excise upon food, drink, fuel, lights, or any native or foreign manufacture, or native or foreign production, except a duty of about four pence sterling upon domestic distilled spirits. The greatest part of the public burdens are paid by an import duty on foreign goods, which being drawn back on exportation, it remains only on what is actually consumed. It is in that view the lowest in the world, and operates greatly in favour of American manufactures.

Trade has been encouraged by a drawback of all the import duty on foreign goods, when they are exported, excepting only a very few commodities of a particular nature, which are not desired to be much imported into, or consumed in the United States. . . .

The banks established in the several cities of Philadelphia, New-York, Boston, Baltimore, Charleston, Alexandria, &c. divide a profit of seven and an half to eight and an half per cent. per annum at present, which is paid half yearly. . . .

The shipbuilding of the Uu[n]ited States was greater in the year 1792, than in any former year since the settlement of the country, and it is much greater in the current year, than it was in the last. Generally speaking, the art of shipbuilding was never so well understood, never so well executcd, nor was there ever a time when so many of the manufactures requisite for the furniture, tackle, apparel and arming of vessels were made in the United States.

The value of the manufactures of the United States is certainly greater than double the value of their exports in native commodities.

The value of the manufactures of the United States, is much greater than the gross value of all their imports, including the value of goods exported again.

The manufactures of the United States consist generally of articles of comfort, utility, and necessity. Articles of luxury, elegance, and shew are not manufactured in America, excepting a few kinds.

The manufactures of the United States have increased very rapidly since the commencement of the revolutionary war, and particularly in the last five years.

Household manufactures are carried on within the families of almost all the farmers and planters, and of a great proportion of the inhabitants of the villages and towns. This practice is increasing under the animating influences of private interest and public spirit.

The exports of the United States have increased in the last two years about fourteen per cent.

Those exports consist in a great degree of the most necessary food of man and working animals, and of raw materials, applicable to manufactures of the most general utility and consumption.

There is not any duty upon the exportation of the produce of the earth, nor can such duty be imposed on any exported commodities: the exportation of produce may be suspended or prohibited.

Produce and all other merchandize may be freely exported in the ships and vessels of all nations (not being alien enemies) without discrimination.

The exports of the United States are five times the amount of the national taxes and duties.

The amount of the outward freight of the ships and vessels of the United States, at this time, is probably equal to all their national taxes and duties. The inward freight is considerable. The earning[s] of the fishing vessels, in lieu of freight, are also considerable. The coasting freights are greater in value than both the last.

All ships and vessels depart from the United States, fully laden, excepting a part of the East India traders.

A large quantity of tonnage is employed in the coasting trade.

A considerable quantity of tonnage is employed in the cod and whale fisheries.

The imports of the United States are less in value than the exports, deducting the outward freights of their own ships (which are returned in goods) the nett sales of their ships to foreigners, the properly imported by migrators from foreign countries, and the public impost.

The very great proportion of the imports, which consists of manufactures, (and from raw materials, which America can produce) affords constant and inviting opportunities to lessen the balance against the United States, in their trade with one foreign country, holds out a certain home market to skilful and industrious manufacturers in America, and gives promises to the landholder and farmer, of a very increasing demand for their produce, in which they cannot be deceived.

The imports of the United States, for consumption, have not been swelled in proportion to the increase of their population and wealth. The reason is, the constant introduction of new branches of manufacture, and the great extensian of the old branches.

The imports, for consumption, into the United States are composed of manufactures in a much less proportion than heretofore, owing to the same two causes.

The imports of the United States have almost ceased to exhibit certain articles of naval and military supply, and others of the greatest utility and consumption, owing also to the same two causes.

The imports of the United States, consist in a small degree of neces. saries, in a great degree of articles of comfortable accommodation, and in some degree of luxuries: but the exports consist chiefly of prime necessaries, with some articles of mere comfort and utility, and some of luxury. The following will be found to be the quantities of some of the principal articles of exportation from the United States, during the year, ending in September, 1792.

The imports of the United States are now generally brought directly (and not circuitiously) from the countries which produced or manufactured them—China, India proper, the isles of Bourbon and Mauritius, Good Hope, the southern settlements of America and the West-Indies, the Wine islands, the countries on the Mediteranean and Baltic Seas, Great-Britain and Ireland, France, the Netherlands and Germany, Spain and Portugal.

Less than half the ships and vessels belonging to the United States, are sufficient to transport all the commodities they consume or import.

Their citizens may be lawfully concerned in any branch of foreign trade, whether carried on from the United States or from any other country.

Their commerce is diversified and prosperous, and consists in importing for their own consumption, and for exportation; in the exporting, the coasting and inland trades; the Indian trade; manufactures, shipping, the fisheries, banking, and insurances on ships, cargoes, and houses. There is no branch of commerce foreign or domestic, in which every district, city, port, and individual, is not equally entitled to be interested.

The lawful interest of money is six per cent. per annum in most of the states: in a few it is seven per cent. in one it is five per cent.

The commanders and other officers of the American ships are deemed skilful and judicious; from which cause, combined with the goodness of their ships and of their equipment, insurances upon their vessels are generally made in Europe, upon the most favourable terms, compared with the corresponding risques on board of the vessels of other nations.

The separate American states (with one small exception) have abolished the slave trade, and they have in some instances abolished negro slavery; in others they have adopted efficacious measures for its certain but gradual abolition. The importation of slaves is discontinued, and can never be renewed so as to interrupt the repose of Africa, or endanger the tranquility of the United States. The steady use of efficiaious alter[n]atives is deemed preferable to the immediate application of more strong remedies in a case of so much momentary and intrinsic importance . . . .

. . . All capital stock is kept in action. There are no descriptions of men in America and very few individuals, at the active times of life, who live without some pursuit of business, profession, occupation, or trade. All the citizens are in active habits . . . .

A large proportion of the most successful manufacturers in the United States are persons, who were journeymen, and in a few instances were foremen in the work-shops and manufactories of Europe, who having been skilfull, sober and frugal, and having thus saved a little money, have set up for themselves with great advantage in America. Few have failed to succeed. . . .

Tench Coxe, (Philadelphia, 1794), 429–443 passim.