"Observations on the Commerce of the American States" (1783)

BY EARL OF SHEFFIELD JOHN BAKER HOLROYD

AS a sudden revolution—an unprecedented case—the independence of America, has encouraged the wildest sallies of imagination; Systems have been preferred to experience, Rash theory to successful practice, and the Navigation Act itself, the guardian of the prosperity of Britain, has been almost abandoned by the levity or ignorance of those, who have never seriously examined the spirit or the happy consequences of it. Our calmer reflections will soon discover, that so great a sacrifice is neither requisite nor expedient; truth and fact are against it; and the knowledge only and consideration of the exports and imports of the American States will afford us just principles, whereby we may ascertain the real value of their trade, foresee and judge of their true interest and probable conduct, and choose the wisest measures (the wisest are always the most simple) for securing and improving the benefits of a commercial intercourse with this now foreign and independent nation. For it is in the light of a foreign country that America must henceforward be viewed—it is the situation she herself has chosen by asserting her independence, and the whimsical definition of a people sui generis, is either a figure of rhetoric which conveys no distinct idea, or the effort of cunning, to unite at the same time the advantages of two inconsistent characters. By asserting their independence, the Americans have at once renounced the privileges, as well as the duties, of British subjects—they are become foreign states; and if in some instances, as in the loss of the carrying-trade, they should feel the inconvenience of their choice, they could not, nor ought they to complain; but should they on the other hand be placed on the footing of the most favoured nation, they must surely applaud our liberality and friendship, without going so far as to expect that for their emolument, we should sacrifice the navigation and of course the naval power of Great Britain. By the simple expedient of permitting the acts of navigation to operate in respect to the American States, as they operate in respect to the most favoured foreign nation, we shall escape the unknown mischiefs of crude and precipitate systems, we shall avoid the rashness of hasty and pernicious concessions; concessions which could never be resumed without provoking their jealousy, and perhaps not without an entire commercial breach with the American States.

In the youthful ardour for grasping the advantages of the American trade, a bill, still depending, was first introduced into parliament. Had it passed into a law, it would have affected our most essential interests in every branch of commerce, and in every part of the world; it would have deprived of their efficacy our navigation laws, and undermined the whole naval power of Britain; it would have endangered the repose of Ireland, and excited the just indignation of Russia and other countries : the West India planters would have been the only subjects of Britain who could have derived any benefit, however partial and transient, from their open intercourse directly with the American States, and indirectly through them with the rest of the world. Fortunately some delays have intervened, and if we diligently use the opportunity of inquiry and reflection, which these delays have afforded us, the future welfare of our country may depend on this salutary pause.

Our impatience to pre-occupy the American market, should perhaps be rather checked than encouraged. The same eagerness has been indulged by our rival nations : they have vied with each other in pouring their manufactures into America, and the country is already stocked, most probably overstocked, with European commodities. It is experience alone that can demonstrate to the French, or Dutch trader, the fallacy of his eager hopes, and that experience will operate every day in favour of the British merchant. He alone is able and willing to grant that liberal credit, which must be extorted from his competitors by the rashness of their early ventures; they will soon discover that America has neither money nor sufficient produce to send in return, and cannot have for some time; and not intending or being able to give credit, their funds will be exhausted, their agents will never return, and the ruin of the first creditors will serve as a lasting warning to their countrymen. The solid power of supplying the wants of America, of receiving her produce, and of waiting her convenience, belongs almost exclusively to our own merchants. If we can abstain from mischievous precipitation, we shall learn, to our great satisfaction, that the industry of Britain will encounter little competition in the American market. We shall observe with pleasure, that, among the maritime states, France, after all her efforts, will derive the smallest benefits from the commercial independence of America. She may exult in the dismemberment of the British empire, but if we are true to ourselves, and to the wisdom of our ancestors, there is still life and vigour left to disappoint her hopes, and to controul her ambition.

To form a just notion of the question now depending, and reasonably to decide upon it, it was necessary to examine and ascertain, what are the wants of America, what this country can provide her with, which cannot be procured elsewhere on terms equally advantageous, and what are the productions which America has to give in return. These investigations will throw some light on a subject as interesting, although perhaps as ill understood, as any that can be agitated among us, and the following facts and observations being distinctly stated, may be more easily comprehended, and will probably be more deliberately considered, than if spoken to benches usually almost empty, except when a ministerial question depends. . . .

But to conclude, some may doubt what turn the American States will take, and with many it may reasonably be a question, whether the trade ever will be again in so prosperous a state for America. Confusion and anarchy are likely to prevail for some time. Our descendants, the New Englanders, apt to be troublesome to themselves, as well as to others, and encouraged by a party among us in the habit of bullying our ministers, may assume a tone, which, however, will now avail them little in Europe. Their natural disposition will be heightened by finding they have lost the principal market for their shipping, lumber, the produce of the whale fishery, and much of the carrying trade. They will machinate, and must attempt to manage. The weakness of the Southern States has not a little to fear from their interference. It remains to be seen, whether the southern will become the puppets of the northern, whether the Middle Colonies will be the dupes to the northern, or a barrier to the Southern States; we shall, however, see New Englanders emigrate from the government of their own forming, even to Nova Scotia and Canada, putting themselves under that British government of which they so loudly complained. Nothing is more uncertain than political speculation. The existence of one man, the merest accident, gives a turn to the affairs of the greatest countries, more especially of a country in the state in which America now is; but it is certain, that the confusion of the American States can now only hurt themselves. They must pay Europe in the best manner they can for cloathing and many articles, for which they are not likely to have the credit they had while in more settled circumstances. If one or more States should prohibit the manufactures of any particular country, they will find their way to them through other States, and by various means. The difficulty will only raise the price on the consumers in the States where the articles are prohibited. The British manufactures found their way to every part of the country during a most rancorous war, and the most strenuous Americans acknowledge that no imposts or excise laws will, for a long time, be regarded in America. In the mean time, and at all times, Britain will have nothing to apprehend. The American States will hardly enter into real hostilities with Britain. Britain need not quarrel with them all; but should either happen, some stout frigates, cruizing between Halifax and Bermuda, and between the latter and the Bahamas, would completely command the commerce of this mighty continent, concerning which our prophets have so much amused themselves, deluding the unthinking—a strangely conducted war is no proof to the contrary; and a land war would not be necessary—but in some of the States, and possibly even in the New-England provinces, when the animosity ceases, and the interested opposition to the return of the Loyalists on the part of those who are in possession of their lands, is no longer kept alive by apprehension, the natural good wishes that we have to the Americans, which they will gradually allow themselves to see, their interest, our interest, and many circumstances may bring us close together.

At present, the only part Britain should take is most simple, and perfectly sure. If the American States chuse to send Consuls, receive them, and send a Consul to each State. Each State will soon enter into all necessary regulations with the Consul, and this is the whole that is necessary.

John Lord Sheffield, ("new edition," London, 1784), 1–277 passim.