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GALLATIN TO HENRY CLAY. 1 - Albert Gallatin, The Writings of Albert Gallatin, vol. 2 [1879]

Edition used:

The Writings of Albert Gallatin, ed. Henry Adams (Philadelphia: J.B. Lippincott, 1879). 3 vols.

Part of: The Writings of Albert Gallatin, 3 vols.

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GALLATIN TO HENRY CLAY.1

No. 16.

London, 27th October, 1826.

Sir,—

. . . Although there is no prospect that any arrangement will shortly take place on that subject, yet it is desirable to be prepared for any contingency. And I wish that the President would take into consideration whether, supposing an arrangement either by convention or by mutual modification on both sides of existing laws or regulations to be practicable, it would be proper, so far as relates to navigation, to agree to the terms contained in the Acts of Parliament.

The most important of the restrictions on the indirect or circuitous trade—that which limited the exportations from the British West Indies in American vessels to the United States—has been repealed, and there remain but two. Such exportations cannot be made in American vessels to Great Britain or her dependencies; a point on which we cannot insist, and which is already given up by the instructions; and the importations into those colonies of American produce must, if made in American vessels, be direct from the United States. Is it necessary on that account to insist on the right of preventing British vessels, other than those coming direct from the colonies, from clearing from the United States for those colonies? Or, in other words (for it is clear, with such a resolution, no arrangement is practicable), is it worth while on that account to continue to cut off altogether the intercourse between the United States and the British colonies? On that question I beg leave to submit two observations: 1st. The right of importing produce of the United States into the British West Indies from other places than the United States is in itself of no great value. It might occasionally be convenient, when the market of Cuba or of other ports in the Gulf of Mexico was glutted with American produce, to have a right to take it in American vessels to the British West India ports; but it is but rarely that these will not, from the same causes, be also glutted at the same time, and that the expense of a double voyage and freight could be incurred. 2dly. Whilst contending for a nominal reciprocity, we must acknowledge that the other party must consider how far this reciprocity will be real. It is now ascertained that four-fifths of the tonnage employed in our intercourse with Great Britain itself are American, and only one-fifth British. Considering the species of population, the climate and commercial capital of the West Indies, and the distance of Great Britain, it is utterly impossible that the direct intercourse between the United States and the British West Indies should not, with equal duties and charges on the navigation, be carried on in a still greater proportion in vessels of the United States. The only compensation in that respect to Great Britain is to be found in the circuitous voyages which British vessels may make from that country through the United States to her West India colonies. And I feel quite confident—I think every man acquainted with the subject will be of the same opinion—that even granting them that privilege will leave more than three-fourths of the intercourse to our vessels.

I apprehend more danger from another source. Unless the rate of duties on our produce when imported direct from the United States into the West Indies, as compared with that laid on it when imported from the British North American colonies, can be limited by convention, it appears to me doubtful whether an understanding without convention would not be preferable. At present our flour imported direct from the United States into the British West Indies pays five shillings per barrel. If imported into Halifax, St. John’s, or Bermuda, and there warehoused, it pays no duty; and if re-exported thence to the British West Indies, which under existing laws can be done only in British vessels, it pays there only one shilling per barrel. This difference of four shillings may not be sufficient to cover the expense and charges of a double voyage, unloading, warehousing, and reloading. But if the rate of duties can be increased at will by Great Britain, she may easily so lay them as that our flour may be delivered on cheaper terms in the West Indies through that circuitous course than direct from the United States, which would at once give her the best part of the navigation. If, therefore, neither the rate of duties can be limited by convention, nor a condition inserted that no greater duties shall be raised on produce of the United States when imported direct from the United States than when imported from other countries, including Great Britain and her colonies, I would strongly incline to the opinion that it would be best, whenever an arrangement becomes practicable, that it should [rest] on a mutual understanding and on the respective laws of the two countries, rather than it should become altogether binding on the United States, and deprive them of the right of countervailing such disproportionate duties as I have alluded to.

It will not escape you that the intercourse by sea between the United States and the British West Indies and North American colonies has always been considered as necessarily connected together by the British government, and that this connection has been kept up in the Acts of Parliament, in the articles proposed to Mr. Rush, and indeed in all former proposals on their part. The condition to which I allude as necessary on our part in case of a convention differs essentially from that which has been absolutely rejected by Great Britain, and which I am instructed to give up. It applies not to the produce of British colonies similar to our own, but to our own when imported into the West Indies from the British colonies. But what renders the subject in that respect still more complex and difficult to arrange by treaty is, that it would be necessary to make a distinct provision as relates to American produce imported into Canada by inland navigation. This, indeed, will probably be, if it is not already, sufficiently protected without any interference on our part. But what relates to that subject, and to the St. Lawrence generally, will be the subject of a distinct despatch.

I have the honor, &c.

[1 ]The beginning of this letter is printed in American State Papers, vi. 294.