APRIL, 1796.] Execution of British Treaty. probability, our trade in sugar, coffee, &c. to Europe would turn out the most lucrative and extensive; for, whoever is acquainted with the history of our commerce for the few last years, must know that in fact the richest part of it hath consisted in the freight and commissions earned by our merchants on the carriage of the sugar, coffee, cotton, and indigo, of the possessions of the belligerent Powers. When they are at war, which happens every ten years nearly, this must be the case; and shall we resign so important an article of advantage for admission on equal terms into the British islands? I trust not; and, inasmuch as the principle is still unsettled, and may be renewed, I the more decidedly give my opinion to this Committee against it. But we are told whatever may be our fate in the West, all our losses are to be balanced in the East Indies; and we are carried from our own neighborhood, to be sure, to a great distance, in order to have repaid all our sacrifices. Let us examine this 13th article respecting the East India trade, and see if it does not bear a very strict analogy to the West India article that has been exploded. [H. of R. ginally inferior, was probably further depreciated by its conveyance from China in small and improper ships, so that it would not sell for 6d. to 8d. per pound. The greater part was, therefore, returned to America, who has since imported considerably from Europe for her own consumption. "It is, therefore, by no means clear that the article of freight will, in any point of view, facilitate the expectation of individuals in a material degree. So long as the exclusive privilege and their political resources shall remain combined and continued to the English company, competitors or interlopers may find their account for a few ships; but when all Europe ships more than wanted must ruin the whole; and, and America are contending for the prize, one or two when loss arises upon an Indian adventure, it is frequently more than private capitals can support. of Great Britain that, in combining and realizing the "It is the singular and unprecedented good fortune territorial revenue through the medium of commerce, aided by the resources, manufactures, and immense internal traffic and consumption, she stands unrivalled amidst surrounding and contending nations, and bids defiance to all competition." Company, who display such a very amiable spirit towards the Irish, because, for one reason, they, like us, speak the same language with themselves. From this reasoning it is pretty plain what enWe are to be admitted, it is true, in vessels of couragement we may expect from the local Govany size, but not suffered to settle or reside with-ernment, acting under the orders of the East India out leave of the local Government-that is, of the British East India Company. Of all the despotisms in the world that of a mercantile monopolizing company is the worst; yet into such hands we are to fall, and from them to solicit leave to reside or travel in the country. What security can there be for a commerce thus precariously conducted, in which your rivals are your judge? Also, as a specimen of their sentiments on this subject, take the following, extracted from reports before alluded to, of this very company, when relating to permitting their fellow-subjects of Ireland to go to this very same quarter of the globe: "The Empire in India is held and depends altogether upon opinion, which must be shaken, if not annihilated, should the natives perceive the subjects of the same Sovereign, speaking the same language, independent to any respect whatever of the ostensible Government of the country. Such a circumstance must at the same time occasion disputes and quarrels between the English and Irish in India, which will produce a discontent at home, and may prove the cause of further ill consequences. It appears to me that, by combinations of this 13th article with the 15th, Great Britain hath stipulated for herself and for the East India Company an admission for British India goods to our country on terms equal, as to duty, in her ships and our own. The event of which will certainly be that she will have here her India warehouses, and will, by her capital and resources, before long, have this trade entirely in her own hands, and our right of admission will turn out to be only an empty name. great degree out of the question in England, the The consumption of India goods being in a Company, who have an annual revenue of a million and a half sterling to receive from their possessions in India, have hitherto sold them at vendue in Leadenhall street; and I believe, considering the credit our merchants usually obtained in London on those goods, and the low price the Company sold them at, they could afford to supply us cheaper in England than we could get them from India in time of peace. I find the East India Company themselves state, in 1788, that seventeen-twentieths of the calicoes import"The advantages which the English company enjoyed by them were exported, and twelve-twentieths over foreigners and individuals in procuring their investments in India and China, are such as cannot be done away in consequence of any disadvantage whatsoever which they may labor under. "Ireland cannot look to America, which enjoys some advantages superior to Europe; but even with those advantages America begins to perceive her interest will be to purchase in Europe. "It is yet too early to form a judgment of what may be the final result of the communication between America, India, and China; but it is by no means in a flourishing situation at present. In consequence of the number of their ships at Canton, in 1789, although their tonnage was comparatively small, yet they brought a large surplus stock for America. That surplus stock was sent to Ostend, Holland, &c., but the quality ori of the muslins also exported, thereby realizing, as they term it, the tribute which India pays to Great Britain through the medium of its commerce. tion of India calicoes and muslins to be reduced In 1793 the Company state the internal consumpin Britain to almost nothing. They add, every shop offers British muslins for sale, equal in appearance, and of more elegant patterns than those of India, for one-fourth, or perhaps more than one-third less in price. They say nine-tenths of all muslins and calicoes are sold for exportation H. OF. R.] Execution of British Treaty. [APRIL, 1796. Suppose cost of piece goods in India, £1,126,300 what shall be laid on those of all other nations; Charge of sale 6 per cent. The difference now existing by law on goods imported in foreign or American vessels, is 10 per cent. on the amount of duties paid; the tonnage difference is 44 cents higher per ton every voyage on a foreign than on an American vessel. The profits on their imports they state as follows, By it it is settled that, so far as respects us, no for a supposed year: tonnage duties shall be laid on British vessels but 209,270 no duties on British articles but what shall be laid 600,970 on those of every other nation; no embargo to 138,894 affect Britain but what affects all other nations alike; American bottoms are left exposed to be Total cost £2,075,434, sold for £2,314,900 charged, in the European British ports, tonnage Yielding about 20 per cent. profit on the first duties equal to those laid on British bottoms here; cost in India. But may it not be asked, whether countervailing duties may be laid in England to we can expect to stand the competition on terms equalize the difference of duties on European or of equal tonnage, equal duties with the East In- Asiatic goods imported here in British or Ameridia Company, who thus make their remittance, can vessels; and no additional difference in tonwhen it is considered that we must send silver out nage or duties of this kind is to be made hereafter. to purchase, and be often long kept out of our ca- These principles deserve to be separately expital, in a country where such numerous and pro-amined. They virtually repeal all the laws herefitable occasions to employ capital present them-tofore made as to navigation and impost, by indiselves, and must trade in India watched every rectly equalizing the tonnage and duties on the step by agents of a Company who will be com- British and American vessels; and they restrain, petitors in purchases with us? I can readily con- in future the powers of Congress on some of the ceive at present the East India trade may resem- most important regulations of foreign commerce ble all others by greater profits, owing to the war that could come before them. in Europe; but, from one attempt that passed under my own eyes, in 1790, as to the East India trade, I had no reason to form high notions of it. When the war ends and trade is reduced to its natural level, we should perhaps find ourselves greatly mistaken as to the value of this article These the British Government may now councoupled with its restrictions, one of which leaves tervail; they may, in fact. charge on our ships it very doubtful whether India goods may be re- coming from London here, and on their cargoes, exported from the United States. On the whole, duties that shall equal in amount the difference the article to me appears to stand thus: We are paid on goods imported from Europe or Asia in admitted to their ports in India, but then the ton- foreign bottoms. And here a curious circumnage we are to pay there is to be measured by stance occurs: Great Britain stipulates a right to the tonnage on British vessels paid here. Our countervail in Europe the differences of duties vessels are also to be restricted not to carry any paid on importing goods from Asia. Why were of the articles exported by us out of India to any duties on Asiatic goods to be countervailed in port or place except to America; and this they Europe? Why is a merchant, no way concerned have a right to enforce in any way they may in the East India trade, to pay a difference on duthink necessary. We are not to settle or reside ties from thence on his ships in Europe? Hath but with the leave of a Government who are mer-any body calculated the amount of this, or the chants, or employed by merchants, and our rivals. Can it be imagined that, under such disadvantages, this trade can be profitable to us in the sequel? What articles do we export to India? What danger may there not be of our trade with parts of India not belonging to Britain being interrupted by their men-of-war, under pretence of our carrying India goods to ports contrary to Treaty? One of the Indiamen has been already taken into Martinique, on what principle, or whether according to Treaty, we have not yet heard. Of one thing we may be sure, we shall find in the India Company rivals, jealous and suspicious, and in their men-of-war ample dispositions to enforce the 13th or any other article of the Treaty against us. The 14th article stipulates an equally free trade between this country and the British possessions in Europe, and provides for each party hiring and possessing warehouses, &c. discouraging effect it must have on the great interests of our navigation employed in Europe? But the hands of Congress are to be tied up to lay no new or additional tonnage on British vessels, nor to increase the difference on duties on goods imported in their vessels or ours; and to make no discrimination in duties, or embargoes, or prohibitions, between British vessels and those of any other nation. May it not well be asked, why all this? Suppose France were to offer us free admission into Hispaniola, and to carry the rich produce of that island, provided we admitted French manufactures on lower terms than British, could we accept it under the Treaty, and why should we have restrained our power of embracing such an offer? It appears to me this article is wholly inadmissible, stipulating sacrifices on our part, without equivalent, without reciprocity. The 15th article is one of the most objection- The 17th article admits Britain to take French able of the whole Treaty, because it funda- goods out of our vessels, while our Treaty with mentally contradicts all the provisions heretofore France forbids the French to take British goods made by our Government for the encouragement out of our ships. Our vessels, therefore, become and protection of the navigation of this country. safe sanctuaries for the property of one nation and unsafe to the other. We consent to take in French goods on freight, we consent to their being taken out and made prize of, so as there be no delay in our being indemnified. Can any thing be harder or more disgraceful than this article? made, too, at a time when France is at war, and we are enjoying so lucrative a trade with her possessions. How fatal must be the admission of this principle to any future state of neutrality of this country! Every American vessel, coming from French or Dutch ports, may, on this principle, be captured or detained on suspicion, in a manner that every day proves ruinous to our commerce and vexatious to our merchants, who see their vessels taken by a fleet stationed on our coast on purpose, almost in their sight. [H. of R. the British ports in Europe on American vessels, they will probably be shut out of them altogether. In time of foreign war, our ships deprived of the neutral rights of carrying allowed them by Treaty with France and Spain, and exposed to be captured and detained on suspicion, as now daily happens. Naval stores exposed to confiscation by England, when shipped at a time when she is at war, to the ports of her enemies. In all these instances our navigation is materially endangered and exposed, without any equivalent advantages. May it not now well be asked, Whence it comes that this interest of navigation hath become less an object of care to us than at the time we passed the laws of duty and impost on foreign ships and goods imported into them? I stated the other day my ideas of the immense importance of navigation. Mr. Burke gave the following opinion of a branch of it in 1775: "As to the wealth which the Colonies have drawn Article 18th relates to the contraband articles, and is as exceptionable as any, because, affording the British a pretext for stopping, as they do daily, our provision cargoes, and thus intercepting the regular operations of our commerce. It is, besides, contradictory to our other Treaties; for it declares, in time of war, articles to be contraband that our other Treaties say shall not be contraband. Suppose Spain and Portugal to be at war, how could we see performed, in justice to each Pow-prising employment has been exercised, ought rather, er, the following contradictory articles: BRITISH TREATY.-Article 18th. "In order to regulate what is in future to be deemed contraband of war, it is agreed, that under the said denomination shall be comprised timber for shipbuilding, tar or rosin, copper in sheets, sails, hemps and cordage, and generally whatever may serve directly to the equipment of vessels, unwrought iron and fir plank only excepted." from the sea by their fisheries, you had all that matter fully opened at your bar. You surely thought those acquisitions of value, for they seemed even to excite your envy; and yet the spirit with which that enter in my opinion, to have raised your esteem and admiration. And pray, sir, what in the world is equal to it? Pass by the other parts and look at the manner in which the people of New England have of late carried on the whale fishery. Whilst we follow them among the tumbling mountains of ice, and behold them penetrating into the deepest frozen recesses of Hudson's Bay and Davis's Straits, whilst we are looking for them beneath the Arctic Circle, we hear that they have pierced into the opposite region of Polar SPANISH TREATY.-Article 16th. " Furthermore, cold, that they are at the antipodes, and engaged under all kinds of cotton, hemp, flax, tar, pitch, ropes, the frozen Serpent of South Falkland Island, which, cables, sails, sail-cloth, anchors, and any parts of seeming too remote and romantic an object for the grasp anchors, also ships-masts, planks and wood of all of national ambition, is but a stage and resting place kind, and all other things proper for either build-in the progress of their victorious industry. Nor is the ing or repairing ships, and all other goods what ever which have not been worked into the form of any instrument prepared for war by land or sea, shall not be reputed contraband." The 19th article stipulates for the security of our people from the men-of-war or privateers of Britain; but the numerous documents of impressments of American natives, that are on the files of the House, sufficiently prove the little regard paid to these stipulations, if they were meant, as was supposed by an honorable member from South Carolina, [Mr. HARPER] to relate to them. On a review. then, of the commercial articles, they may be summed up as follows: West India trade left blank by the suspension of the 12th article. East India trade subjected to a condition of residence, rendering it precarious, and restricted to a landing of the goods exported in the United States, not known to have ever been imposed in any way similar, on any other nation trading to Ben gal, while all nations are constantly allowed an equal liberty of trading there with ourselves. European and both these trades liable to an equalization of tonnage and duties, that cannot but operate unfavorably to the American navigation. Should the countervailing duties take place in 4th CON.-33 equinoctial heat more discouraging to them than the Since then our navigation has had the growth of a man arrived at full age, (twenty-one,) and become extended to an immense size; yet was it H. OF R.] Execution of British Treaty. [APRIL, 1796. Committee rose, had leave to sit again, and the SATURDAY, April 16. so unprotected that, in this year, the United States wanting to remit out of some cargoes of sugar and coffee shipped on private account, money to pay the interest of their debts in Holland, they were under the necessity of asking passports for DEBT DUE BANK UNITED STATES. these cargoes of the French and British Ministers, to let this property pass in safety over the Atlan Mr. GALLATIN called up the resolution which tic; and I have seen it boasted in some of our pa- he laid upon the table on Thursday, for the appers, that orders were issued by the British Go-pointment of a committee to inquire of the Bank vernment to their Port Admirals to respect these of the United States, whether they were willing, passports thus given by their Minister or agent to let the sum of $3,800,000 which they had ad-" here; so the United States left their own mer-vanced to Government by way of anticipations, chants to carry their sugar and coffee as they remain on new loans as usual. might, but obtained passes for ships, in the proceeds of whose sales they were interested. What a strange circumstance, this! The American Government sailing secure under passes-the private merchant exposed! But it is asked, if this Treaty be so unfavorable to commerce, why are the merchants so much in favor of it? After some observations on the nature and propriety of the inquiry from Messrs. GALLATIN, SWANWICK, HILLHOUSE, HARPER, SEDGWICK, and LIVINGSTON; and the sum being struck out, it was agreed to, and a committee was appointed to carry the inquiry into effect. EXECUTION OF BRITISH TREATY. The House then resolved itself into a Committee of the Whole on the state of the Union, and took up the resolution for carrying into effect the Treaty with Great Britain. They explain the reason themselves. They are influenced by the present rather than future interests. Five millions of spoliations they look to the Treaty to repay; their property afloat, they fear to be taken, and war they dread; but is there Mr. NICHOLAS said, he was sorry to find gentlemen really weight in these arguments? I am as large- unwilling to go into a discussion of the merits of the ly interested as any individual among them in Treaty, as he anticipated considerable benefits to shipping, and have suffered the loss of one of my the community from a fair investigation. He did cargoes at Bermuda, for which my underwriters not know, as had been said, that it could have no -have made me only a partial allowance; but I effect on the minds of members of the House, but neither dread any war on the part of England, he thought it necessary that the people should be situated as she now is, nor expect any payment of enabled to form a just opinion of the merits of this my loss from the Treaty, To a nation to whom she compact, that neither opposition nor their attachoffers bounties to carry her provisions, and who is ment, should go beyond just bounds; that fair inso excellent a customer for her manufactures. she vestigation was the most likely means of produwill not be easily induced to offer hostilities that cing that calm in the public mind which he wished shall go to the extent of war; and the Commis-to see produced whenever Government had finally sioners on Spoliations are to act in London mere- decided, and he would venture to say, there was ly as arbitrators of the Law of Nations, on whom no place which could be resorted to for more sound our claim of spoliations is at best but a very un-information. He was as willing to admit that it certain dependance. The merchants is sundry parts of the United States having thought it so, have claimed the interference of Congress in advancing them the money, they rather doubted getting anywhere else. Considering, then, this Treaty as merely a bargain exhibiting little or no profit and much to lose, I separate it from all considerations foreign to itself. I judge it on its own merits, and these must lead me to vote for the proposition to suspend appropriations, especially in a moment when our seamen continue to be impressed and our ships to be taken. In this I may differ from many of my fellow-citizens, whom I greatly respect, and from whom it gives me pain to have opposite sentiments, but I rely on their candor, and full of the deepest sense of the high honor their choice has conferred upon me, I will endeavor to merit it by the exertion of my best judgment for their interests, partaking, myself, equally, at least, with any of them, in the consequences that may result, and which, I trust, will be such as will do honor to. and promote the best and most lasting interests of our country. When Mr. S. had concluded his speech, the could not be obtained from the passionate publications which were produced by the first impression of the Treaty, as he was bold to assert, that it was not to be found in the labored justifications which had appeared in the papers, and which was distinguished more by sophistry and zeal for the instrument than a wish to discover truth, or a design to enlighten the people of the United States. Under this impression, he would offer his sentiments to the Committee, on the probable effects of the Treaty. In looking for inducements to accept it, he should confine himself to those offered by the instrument itself; for he could not appreciate those mischiefs which party men had conjured up as following the rejection of the Treaty. He could not conceive that cause of offence would be given to Great Britain, or that her interest or situation would permit her to resent it, if there was such cause; this House had decided that the Constitution had made it their duty to examine Treaties like the present, and to determine on them according to the interest of the United States. It followed that, being a constituted authority for giving operation to such a Treaty, there was no APRIL, 1796.] Execution of British Treaty. [H. OF R. obligation on the United States until the House concurred; and Great Britain must resist this construction of the Constitution before she can pretend that any right of her's has been violated. Nobody will contend that she can meddle, on this ground, or attempt to impose a construction of the Constitution agreeable to herself. As there is want of pretext for quarrel, so, also, must there be a disinclination to embroil herself with the United States. This is the time, of all others, when Greated the Senate, in their deliberations on this TreaBritain would be most averse to war, exhausted by her present contest, completely disappointed in the events of it, and continuing it only with the hope of acquiring something on which to build a safe peace; it is not to be believed that she would embark in a new war, with the sacrifice of her best trade; more especially, as she has shown an intention of making her remaining efforts against France, in the neighborhood of the United States, where their supplies will be essentially necessary to her success. There does not appear any cause of alarm; but if there was reason to expect that Great Britain would take offence, that would be no ground for acceptance. It would fully prove the inequality of the contract, and would, in effect, be an attack on the independence of this country. The danger would increase with the benefit she promised herself, and submission would inevitably provoke demands. into a construction of the words of the article, as its meaning has certainly been fixed by the interpretation of the parties in the ten years which elapsed after it. In all that time the United States have asserted the claim, and it cannot be shown that Great Britain ever contested the construction of the article. It is said, that one of the Commissioners, [Mr. Adams,] who concluded the Treaty of 1783, in behalf of the United States, informty, that it was the unquestionable meaning of the article, to save all negroes and other property then in the hands of the British; that the article was inserted after all other points had been settled at the instance of Mr. Laurens, who just then arrived from his confinement in London, and the reason assigned by him was, that many of the people of the United States would be disabled from complying with the part of the Treaty which respects debts unless this provision was made, that the same gentleman, who was afterwards Ambassador from the United States to the Court of London, also informed the Senate that, during his embassy, this construction of the article was never denied, and that it seemed to be understood by the Ministry, that, on a settlement with the United States, compensation must be made. This subject was fully investigated by the negotiator of the Treaty, [Mr. Jay,] while he was Secretary of FoIn considering the merits of the Treaty itself, reign Affairs; all the reasons which now arm the Mr. N. said, he would consider the subjects which friends of the Treaty against this claim were expressed themselves on the negotiator, and demand-amined by him, and then his decision was, that ed provision. These were chiefly the disputes we were entitled to compensation. The reputed arising under the Treaty of 1783, late depreda- author of the best defence of the Treaty, [Mr. tions on our trade, and the settlement of contested Hamilton,] in the year 1783, introduced a resoluprinciples to guard us against future misunder- tion into Congress, declaring that the negroes, &c., standings. had been carried away by the British armies, conThe cases arising under the Treaty of 1783, as trary to the true intent and meaning of the Treaheretofore contested, were negroes and other pro-ty. Mr. N. thought it too late to extort a meanperty carried away contrary to its stipulations; the territorial claim under it, and on the part of Great Britain, an interference in the recovery of private debts. table. Before the Treaty became binding, Great Britain, by carrying away the negroes, put it out of her power to execute the contract which she had made, while, on the part of the United States, no act had been done which was inconsistent with the Treaty, provided the acts of the States did not continue to operate after the ratifications were exchanged. ing from a contract after it had existed more than ten years; and he did not doubt every candid mind would be satisfied by the acquiescence of Britain, and the evidence which he had produced Of the negroes, nothing is said in the present of a perfect understanding between the two counTreaty. It is to be expected in negotiations, tries on the subject. If the new construction of that some concessions are to be made for the sake the article could not be established, the first inof accommodation, and this sacrifice of private in-fraction of the Treaty of 1783 remained indisputerests becomes sometimes unavoidable. This claim was of considerable importance to a class of the citizens of the United States, but it was of still greater importance, as it justified the United States from the charge of breaking the Treaty of Peace. In this respect it was highly incumbent on the negotiator to procure satisfaction. It will not be contended that it should have been a sine qua non in the negotiation, and it would not now be mentioned, if it was not necessary to a fair estimate of some of the stipulations of the Treaty, and if there had not been so uniform a surrender of the interests of the United States as to compel a calculation. It is now said, indeed, that the meaning of the Treaty of 1783 was mistaken, and that the engagement was only to refrain from carrying away negroes, &c., which should be found in possession of the inhabitants at the time peace should take place. It is not necessary now to go Before he examined the cases provided for in this Treaty, it was necessary to remark, that the Treaty declares its intention to be to settle the disputes of the two countries without regard to former criminations, and all the writers in favor of the Treaty, declare that it was necessary to waive the first infraction of the former Treaty. This was a proper principle, and he only asked that it should have been pursued. This spirit of conciliation must have meant to put both parties on the same footing, either by agreeing that neither party had |