252 



FARMERS' REGISTER, 



[No. 4 



more despatch, or at cheaper rates. This being 

 conceded, as from the obvious nature of the pro- 

 position it must be, the question arises, whether 

 it is the interest and policy of the state to foster 

 and encourage a direct foreijin import trade. 



" Pursuing this inquiry, it is. in the first place, 

 to be remarked, that Virixinia has a large export 

 trade — large when compared with the asgreirate 

 export of all the states. Her exports for three 

 years endinir vvith December, 1837, averaged ^5,- 

 265,461. This, of course, gave her that amount 

 of foreign capital, ready to be employed in what- 

 soever mode that was profitable. Yet, whilst she 

 had it in her power, through the medium of her 

 exports, to obtain directly, and at a reduced cost, 

 the foreign productions demanded by her con- 

 Bumption, the course of trade hitherto has been to 

 obtain those productions in northern cities ; there- 

 by receiving them through a circuitous channel, 

 and at an enhanced cost. The average import 

 lor the period just referred to, has been less than 

 one-seventh of her exports ; and assuming that 

 the ditference between those two amounts has 

 been expended in procuring at the north those fo- 

 reign supplies, which her exports would have ena- 

 bled her to procure directly fi-om abroad, and as- 

 suming further, that the augmented cost of the 

 Ibrmer operation is equal to fifteen per centum, 

 and we detect an annual loss of about S'700,000 

 incurred by the state from her neglect of the im- 

 port trade. But that sum is lar below the actual 

 annual loss ; for fifteen per centum is an under es- 

 timate of the addition to the charges upon the fo- 

 reiiTti supplies coming through the indirect chan- 

 nel referred to, and the sum assumed to be mvest- 

 ed in those supplies, is below the actual amount. 

 The loss to the consumer of foreign supplies, so 

 obtained, is equal at least to fifteen per cent, upon 

 Uie amount of his purchases. 



" Now, if any thing be needed to rouse the citi- 

 zens of our state from the supineness which could 

 overlook so enormous a tax upon its industry and 

 resources, or reconcile them to it, it would seem to 

 be the consideration, that it is v.ith their own ster- 

 ling money the importation is made, which they 

 submit to receive at second hand at so ruinous a 

 sacrifice. Again ; the tonnage which is employ- 

 ed in carrying on the export commerce of the 

 state would be more than adequate to the impor- 

 tation of all the foreign supplies demanded by our 

 whole consumption. But, through the neglect of 

 the import trade, the important advantages result- 

 ing from the employment of that tonnage have 

 been lost to the state, and appropriated by those 

 who have had the sagacity and enterprise to en- 

 list it in their service. The amount of which loss 

 is not to be estimated simply by the sacrifice of 

 the benefits which would accrue to us, from the 

 employment therein of domestic capital and labor, 

 but by the sacrifice in addition of the associated 

 trades and occupations that always attend upon 

 the successful prosecution of any one important 

 branch of business. 



" Finally — for your committee must be content 

 to suggest some of the prominent, rather than at- 

 tempt to develop the numerous reasons which 

 commend the import trade to the favor and pa- 

 tronage of our state — another, and not the least, 

 consideration why a vigorous and persevering ef- 

 fort should be made to secure it, is, that it will 

 have the effect of recovering the slate from that 



dependence on northern markets, which has ex- 

 posed us to suffer by their vicissitudes, without any 

 direct participation in their prosperity. 



" Upon the first view of the subject, the causes 

 of the disparity between the amount of' our export 

 and import commerce, may not suggest them- 

 selves to inquirers generally. The former being 

 large, as we have seen, involving all the facilities 

 which are needed for making purchases abroad ; 

 the tonnage which carried out our staples being at 

 hand to be employed in bringing in the produc- 

 tions for which it is to be exchanged; and the 

 simple operation of barter being the natural and 

 cheap mode of effecting that exchange, why is it 

 that, at great pecuniary loss, our people rely upon 

 others for productions that they could procure bet- 

 ter by themselves? To answer this question ful- 

 ly, would lead the committee into an investigation, 

 which they have not time to pursue. But among 

 the most prominent causes that may be assigned, 

 the capital required by the import trade, being 

 greatly more than the capital necessary for the ex- 

 port [trade,] may be instanced as not the least in- 

 fluential. The export merchant, through the sys- 

 tem of advances that universally prevails, has a 

 large proportion of the capital employed in his 

 purchases speedily restored to him, through the 

 medium of a sterling bill which he is permitted to 

 draw upon his consignee. The like rapidity of 

 purchase and return is not enjoyed by the miport 

 merchant. He is exposed to the more tardy pro- 

 cess of effecting a sale ; and that sale is upon 

 time. It is manifest, therefore, that the amount of 

 capital requisite for the successful prosecution of 

 the latter description of commerce is greatly be- 

 yond the capital which ^vill suffice for the ibrmer. 

 This consideration, in a great degree, accounts lor 

 the comparative languishing condition of the im- 

 port trade, and the reluctance of our merchants to 

 engage in it. The capital of few, comparatively, 

 is adequate to its burthen; and the exigency re- 

 sulting therefrom has not hitherto been met and 

 provided for by the granting of those banking fa- 

 cilities, which a timely and earnest appeal to our 

 legislature would doubtless have obtained. And 

 this brings the committee to the consideration of 

 the second resolution. 



" It, is the opinion of your committee, than an 

 increase of banking facilities, so that the important 

 interest which they now seek to recommend to 

 general and spirited support, would readily obtain 

 the accommodation of which it stands in need; 

 accompanied by a patriotic determination of all 

 classes of our citizens to support a course of do- 

 mestic industry so auspicious to private and slate 

 wealth, comlbrt, and independence, and accompa- 

 nied also by a judicious system of internal im- 

 provements, so that every section of our extended 

 territory may be accommodated, and their rich re- 

 sources developed, would secure to our state an 

 extent of foreign commerce that would be the 

 source of untold benefits to all classes of our peo- 

 ple, and of power and consideration to our com- 

 monwealth." 



JVlr. RufRn (of Petersburg") offered the fbllow- 

 \ns substitute for so much of the report as recom- 

 mends the increase of banking capital. 



"The desired change of the course of trade 

 may be still more aided and secured by the ac- 

 tion of the state government, which can be so 

 powerfully wielded, according to the direction 



