The Federalist Papers by Alexander Hamilton, John Jay, and James Madison
1. "Spirit of Laws," vol. i., book ix., chap. i.
7731 words | Chapter 9
FEDERALIST No. 10
The Same Subject Continued (The Union as a Safeguard Against Domestic
Faction and Insurrection)
From the Daily Advertiser. Thursday, November 22, 1787.
MADISON
To the People of the State of New York:
AMONG the numerous advantages promised by a well constructed Union, none
deserves to be more accurately developed than its tendency to break and
control the violence of faction. The friend of popular governments never
finds himself so much alarmed for their character and fate, as when he
contemplates their propensity to this dangerous vice. He will not fail,
therefore, to set a due value on any plan which, without violating the
principles to which he is attached, provides a proper cure for it.
The instability, injustice, and confusion introduced into the public
councils, have, in truth, been the mortal diseases under which popular
governments have everywhere perished; as they continue to be the
favorite and fruitful topics from which the adversaries to liberty
derive their most specious declamations. The valuable improvements made
by the American constitutions on the popular models, both ancient
and modern, cannot certainly be too much admired; but it would be an
unwarrantable partiality, to contend that they have as effectually
obviated the danger on this side, as was wished and expected. Complaints
are everywhere heard from our most considerate and virtuous citizens,
equally the friends of public and private faith, and of public and
personal liberty, that our governments are too unstable, that the public
good is disregarded in the conflicts of rival parties, and that measures
are too often decided, not according to the rules of justice and the
rights of the minor party, but by the superior force of an interested
and overbearing majority. However anxiously we may wish that these
complaints had no foundation, the evidence, of known facts will not
permit us to deny that they are in some degree true. It will be found,
indeed, on a candid review of our situation, that some of the distresses
under which we labor have been erroneously charged on the operation
of our governments; but it will be found, at the same time, that other
causes will not alone account for many of our heaviest misfortunes;
and, particularly, for that prevailing and increasing distrust of public
engagements, and alarm for private rights, which are echoed from one
end of the continent to the other. These must be chiefly, if not wholly,
effects of the unsteadiness and injustice with which a factious spirit
has tainted our public administrations.
By a faction, I understand a number of citizens, whether amounting to a
majority or a minority of the whole, who are united and actuated by some
common impulse of passion, or of interest, adversed to the rights of
other citizens, or to the permanent and aggregate interests of the
community.
There are two methods of curing the mischiefs of faction: the one, by
removing its causes; the other, by controlling its effects.
There are again two methods of removing the causes of faction: the
one, by destroying the liberty which is essential to its existence; the
other, by giving to every citizen the same opinions, the same passions,
and the same interests.
It could never be more truly said than of the first remedy, that it was
worse than the disease. Liberty is to faction what air is to fire, an
aliment without which it instantly expires. But it could not be less
folly to abolish liberty, which is essential to political life, because
it nourishes faction, than it would be to wish the annihilation of
air, which is essential to animal life, because it imparts to fire its
destructive agency.
The second expedient is as impracticable as the first would be unwise.
As long as the reason of man continues fallible, and he is at liberty
to exercise it, different opinions will be formed. As long as the
connection subsists between his reason and his self-love, his opinions
and his passions will have a reciprocal influence on each other; and the
former will be objects to which the latter will attach themselves. The
diversity in the faculties of men, from which the rights of property
originate, is not less an insuperable obstacle to a uniformity of
interests. The protection of these faculties is the first object of
government. From the protection of different and unequal faculties of
acquiring property, the possession of different degrees and kinds of
property immediately results; and from the influence of these on the
sentiments and views of the respective proprietors, ensues a division of
the society into different interests and parties.
The latent causes of faction are thus sown in the nature of man; and
we see them everywhere brought into different degrees of activity,
according to the different circumstances of civil society. A zeal for
different opinions concerning religion, concerning government, and many
other points, as well of speculation as of practice; an attachment to
different leaders ambitiously contending for pre-eminence and power; or
to persons of other descriptions whose fortunes have been interesting
to the human passions, have, in turn, divided mankind into parties,
inflamed them with mutual animosity, and rendered them much more
disposed to vex and oppress each other than to co-operate for their
common good. So strong is this propensity of mankind to fall into mutual
animosities, that where no substantial occasion presents itself, the
most frivolous and fanciful distinctions have been sufficient to kindle
their unfriendly passions and excite their most violent conflicts. But
the most common and durable source of factions has been the various
and unequal distribution of property. Those who hold and those who are
without property have ever formed distinct interests in society.
Those who are creditors, and those who are debtors, fall under a
like discrimination. A landed interest, a manufacturing interest, a
mercantile interest, a moneyed interest, with many lesser interests,
grow up of necessity in civilized nations, and divide them into
different classes, actuated by different sentiments and views. The
regulation of these various and interfering interests forms the
principal task of modern legislation, and involves the spirit of party
and faction in the necessary and ordinary operations of the government.
No man is allowed to be a judge in his own cause, because his interest
would certainly bias his judgment, and, not improbably, corrupt his
integrity. With equal, nay with greater reason, a body of men are unfit
to be both judges and parties at the same time; yet what are many of the
most important acts of legislation, but so many judicial determinations,
not indeed concerning the rights of single persons, but concerning the
rights of large bodies of citizens? And what are the different classes
of legislators but advocates and parties to the causes which they
determine? Is a law proposed concerning private debts? It is a question
to which the creditors are parties on one side and the debtors on the
other. Justice ought to hold the balance between them. Yet the parties
are, and must be, themselves the judges; and the most numerous party,
or, in other words, the most powerful faction must be expected to
prevail. Shall domestic manufactures be encouraged, and in what degree,
by restrictions on foreign manufactures? are questions which would be
differently decided by the landed and the manufacturing classes, and
probably by neither with a sole regard to justice and the public good.
The apportionment of taxes on the various descriptions of property is
an act which seems to require the most exact impartiality; yet there is,
perhaps, no legislative act in which greater opportunity and temptation
are given to a predominant party to trample on the rules of justice.
Every shilling with which they overburden the inferior number, is a
shilling saved to their own pockets.
It is in vain to say that enlightened statesmen will be able to adjust
these clashing interests, and render them all subservient to the public
good. Enlightened statesmen will not always be at the helm. Nor, in many
cases, can such an adjustment be made at all without taking into view
indirect and remote considerations, which will rarely prevail over the
immediate interest which one party may find in disregarding the rights
of another or the good of the whole.
The inference to which we are brought is, that the CAUSES of faction
cannot be removed, and that relief is only to be sought in the means of
controlling its EFFECTS.
If a faction consists of less than a majority, relief is supplied by the
republican principle, which enables the majority to defeat its sinister
views by regular vote. It may clog the administration, it may convulse
the society; but it will be unable to execute and mask its violence
under the forms of the Constitution. When a majority is included in a
faction, the form of popular government, on the other hand, enables it
to sacrifice to its ruling passion or interest both the public good
and the rights of other citizens. To secure the public good and private
rights against the danger of such a faction, and at the same time to
preserve the spirit and the form of popular government, is then the
great object to which our inquiries are directed. Let me add that it is
the great desideratum by which this form of government can be rescued
from the opprobrium under which it has so long labored, and be
recommended to the esteem and adoption of mankind.
By what means is this object attainable? Evidently by one of two only.
Either the existence of the same passion or interest in a majority at
the same time must be prevented, or the majority, having such coexistent
passion or interest, must be rendered, by their number and local
situation, unable to concert and carry into effect schemes of
oppression. If the impulse and the opportunity be suffered to coincide,
we well know that neither moral nor religious motives can be relied on
as an adequate control. They are not found to be such on the injustice
and violence of individuals, and lose their efficacy in proportion to
the number combined together, that is, in proportion as their efficacy
becomes needful.
From this view of the subject it may be concluded that a pure democracy,
by which I mean a society consisting of a small number of citizens, who
assemble and administer the government in person, can admit of no cure
for the mischiefs of faction. A common passion or interest will, in
almost every case, be felt by a majority of the whole; a communication
and concert result from the form of government itself; and there is
nothing to check the inducements to sacrifice the weaker party or an
obnoxious individual. Hence it is that such democracies have ever
been spectacles of turbulence and contention; have ever been found
incompatible with personal security or the rights of property; and have
in general been as short in their lives as they have been violent in
their deaths. Theoretic politicians, who have patronized this species
of government, have erroneously supposed that by reducing mankind to
a perfect equality in their political rights, they would, at the same
time, be perfectly equalized and assimilated in their possessions, their
opinions, and their passions.
A republic, by which I mean a government in which the scheme of
representation takes place, opens a different prospect, and promises
the cure for which we are seeking. Let us examine the points in which it
varies from pure democracy, and we shall comprehend both the nature of
the cure and the efficacy which it must derive from the Union.
The two great points of difference between a democracy and a republic
are: first, the delegation of the government, in the latter, to a small
number of citizens elected by the rest; secondly, the greater number of
citizens, and greater sphere of country, over which the latter may be
extended.
The effect of the first difference is, on the one hand, to refine and
enlarge the public views, by passing them through the medium of a chosen
body of citizens, whose wisdom may best discern the true interest of
their country, and whose patriotism and love of justice will be least
likely to sacrifice it to temporary or partial considerations. Under
such a regulation, it may well happen that the public voice, pronounced
by the representatives of the people, will be more consonant to the
public good than if pronounced by the people themselves, convened for
the purpose. On the other hand, the effect may be inverted. Men of
factious tempers, of local prejudices, or of sinister designs, may, by
intrigue, by corruption, or by other means, first obtain the suffrages,
and then betray the interests, of the people. The question resulting is,
whether small or extensive republics are more favorable to the election
of proper guardians of the public weal; and it is clearly decided in
favor of the latter by two obvious considerations:
In the first place, it is to be remarked that, however small the
republic may be, the representatives must be raised to a certain number,
in order to guard against the cabals of a few; and that, however large
it may be, they must be limited to a certain number, in order to
guard against the confusion of a multitude. Hence, the number of
representatives in the two cases not being in proportion to that of
the two constituents, and being proportionally greater in the small
republic, it follows that, if the proportion of fit characters be not
less in the large than in the small republic, the former will present a
greater option, and consequently a greater probability of a fit choice.
In the next place, as each representative will be chosen by a greater
number of citizens in the large than in the small republic, it will
be more difficult for unworthy candidates to practice with success the
vicious arts by which elections are too often carried; and the suffrages
of the people being more free, will be more likely to centre in men who
possess the most attractive merit and the most diffusive and established
characters.
It must be confessed that in this, as in most other cases, there is a
mean, on both sides of which inconveniences will be found to lie.
By enlarging too much the number of electors, you render the
representatives too little acquainted with all their local circumstances
and lesser interests; as by reducing it too much, you render him unduly
attached to these, and too little fit to comprehend and pursue great and
national objects. The federal Constitution forms a happy combination in
this respect; the great and aggregate interests being referred to the
national, the local and particular to the State legislatures.
The other point of difference is, the greater number of citizens
and extent of territory which may be brought within the compass of
republican than of democratic government; and it is this circumstance
principally which renders factious combinations less to be dreaded
in the former than in the latter. The smaller the society, the fewer
probably will be the distinct parties and interests composing it; the
fewer the distinct parties and interests, the more frequently will
a majority be found of the same party; and the smaller the number of
individuals composing a majority, and the smaller the compass within
which they are placed, the more easily will they concert and execute
their plans of oppression. Extend the sphere, and you take in a greater
variety of parties and interests; you make it less probable that a
majority of the whole will have a common motive to invade the rights
of other citizens; or if such a common motive exists, it will be more
difficult for all who feel it to discover their own strength, and to act
in unison with each other. Besides other impediments, it may be remarked
that, where there is a consciousness of unjust or dishonorable purposes,
communication is always checked by distrust in proportion to the number
whose concurrence is necessary.
Hence, it clearly appears, that the same advantage which a republic has
over a democracy, in controlling the effects of faction, is enjoyed by
a large over a small republic,--is enjoyed by the Union over the
States composing it. Does the advantage consist in the substitution of
representatives whose enlightened views and virtuous sentiments render
them superior to local prejudices and schemes of injustice? It will not
be denied that the representation of the Union will be most likely
to possess these requisite endowments. Does it consist in the greater
security afforded by a greater variety of parties, against the event of
any one party being able to outnumber and oppress the rest? In an equal
degree does the increased variety of parties comprised within the
Union, increase this security. Does it, in fine, consist in the greater
obstacles opposed to the concert and accomplishment of the secret wishes
of an unjust and interested majority? Here, again, the extent of the
Union gives it the most palpable advantage.
The influence of factious leaders may kindle a flame within their
particular States, but will be unable to spread a general conflagration
through the other States. A religious sect may degenerate into a
political faction in a part of the Confederacy; but the variety of sects
dispersed over the entire face of it must secure the national councils
against any danger from that source. A rage for paper money, for an
abolition of debts, for an equal division of property, or for any other
improper or wicked project, will be less apt to pervade the whole body
of the Union than a particular member of it; in the same proportion as
such a malady is more likely to taint a particular county or district,
than an entire State.
In the extent and proper structure of the Union, therefore, we behold
a republican remedy for the diseases most incident to republican
government. And according to the degree of pleasure and pride we feel
in being republicans, ought to be our zeal in cherishing the spirit and
supporting the character of Federalists.
PUBLIUS
FEDERALIST No. 11
The Utility of the Union in Respect to Commercial Relations and a Navy
For the Independent Journal. Saturday, November 24, 1787
HAMILTON
To the People of the State of New York:
THE importance of the Union, in a commercial light, is one of those
points about which there is least room to entertain a difference of
opinion, and which has, in fact, commanded the most general assent of
men who have any acquaintance with the subject. This applies as well to
our intercourse with foreign countries as with each other.
There are appearances to authorize a supposition that the adventurous
spirit, which distinguishes the commercial character of America, has
already excited uneasy sensations in several of the maritime powers of
Europe. They seem to be apprehensive of our too great interference in
that carrying trade, which is the support of their navigation and the
foundation of their naval strength. Those of them which have colonies in
America look forward to what this country is capable of becoming, with
painful solicitude. They foresee the dangers that may threaten their
American dominions from the neighborhood of States, which have all the
dispositions, and would possess all the means, requisite to the creation
of a powerful marine. Impressions of this kind will naturally indicate
the policy of fostering divisions among us, and of depriving us, as far
as possible, of an ACTIVE COMMERCE in our own bottoms. This would
answer the threefold purpose of preventing our interference in their
navigation, of monopolizing the profits of our trade, and of clipping
the wings by which we might soar to a dangerous greatness. Did not
prudence forbid the detail, it would not be difficult to trace, by
facts, the workings of this policy to the cabinets of ministers.
If we continue united, we may counteract a policy so unfriendly to our
prosperity in a variety of ways. By prohibitory regulations, extending,
at the same time, throughout the States, we may oblige foreign countries
to bid against each other, for the privileges of our markets. This
assertion will not appear chimerical to those who are able to appreciate
the importance of the markets of three millions of people--increasing
in rapid progression, for the most part exclusively addicted to
agriculture, and likely from local circumstances to remain so--to any
manufacturing nation; and the immense difference there would be to the
trade and navigation of such a nation, between a direct communication in
its own ships, and an indirect conveyance of its products and returns,
to and from America, in the ships of another country. Suppose, for
instance, we had a government in America, capable of excluding Great
Britain (with whom we have at present no treaty of commerce) from all
our ports; what would be the probable operation of this step upon her
politics? Would it not enable us to negotiate, with the fairest prospect
of success, for commercial privileges of the most valuable and extensive
kind, in the dominions of that kingdom? When these questions have been
asked, upon other occasions, they have received a plausible, but not a
solid or satisfactory answer. It has been said that prohibitions on our
part would produce no change in the system of Britain, because she could
prosecute her trade with us through the medium of the Dutch, who would
be her immediate customers and paymasters for those articles which were
wanted for the supply of our markets. But would not her navigation be
materially injured by the loss of the important advantage of being her
own carrier in that trade? Would not the principal part of its profits
be intercepted by the Dutch, as a compensation for their agency and
risk? Would not the mere circumstance of freight occasion a considerable
deduction? Would not so circuitous an intercourse facilitate the
competitions of other nations, by enhancing the price of British
commodities in our markets, and by transferring to other hands the
management of this interesting branch of the British commerce?
A mature consideration of the objects suggested by these questions will
justify a belief that the real disadvantages to Britain from such a
state of things, conspiring with the pre-possessions of a great part of
the nation in favor of the American trade, and with the importunities
of the West India islands, would produce a relaxation in her present
system, and would let us into the enjoyment of privileges in the markets
of those islands elsewhere, from which our trade would derive the most
substantial benefits. Such a point gained from the British government,
and which could not be expected without an equivalent in exemptions
and immunities in our markets, would be likely to have a correspondent
effect on the conduct of other nations, who would not be inclined to see
themselves altogether supplanted in our trade.
A further resource for influencing the conduct of European nations
toward us, in this respect, would arise from the establishment of a
federal navy. There can be no doubt that the continuance of the Union
under an efficient government would put it in our power, at a period not
very distant, to create a navy which, if it could not vie with those of
the great maritime powers, would at least be of respectable weight if
thrown into the scale of either of two contending parties. This would be
more peculiarly the case in relation to operations in the West Indies.
A few ships of the line, sent opportunely to the reinforcement of either
side, would often be sufficient to decide the fate of a campaign, on the
event of which interests of the greatest magnitude were suspended. Our
position is, in this respect, a most commanding one. And if to this
consideration we add that of the usefulness of supplies from this
country, in the prosecution of military operations in the West Indies,
it will readily be perceived that a situation so favorable would enable
us to bargain with great advantage for commercial privileges. A price
would be set not only upon our friendship, but upon our neutrality. By
a steady adherence to the Union we may hope, erelong, to become the
arbiter of Europe in America, and to be able to incline the balance
of European competitions in this part of the world as our interest may
dictate.
But in the reverse of this eligible situation, we shall discover that
the rivalships of the parts would make them checks upon each other,
and would frustrate all the tempting advantages which nature has kindly
placed within our reach. In a state so insignificant our commerce would
be a prey to the wanton intermeddlings of all nations at war with each
other; who, having nothing to fear from us, would with little scruple or
remorse, supply their wants by depredations on our property as often as
it fell in their way. The rights of neutrality will only be respected
when they are defended by an adequate power. A nation, despicable by its
weakness, forfeits even the privilege of being neutral.
Under a vigorous national government, the natural strength and resources
of the country, directed to a common interest, would baffle all the
combinations of European jealousy to restrain our growth. This situation
would even take away the motive to such combinations, by inducing
an impracticability of success. An active commerce, an extensive
navigation, and a flourishing marine would then be the offspring of
moral and physical necessity. We might defy the little arts of the
little politicians to control or vary the irresistible and unchangeable
course of nature.
But in a state of disunion, these combinations might exist and might
operate with success. It would be in the power of the maritime nations,
availing themselves of our universal impotence, to prescribe the
conditions of our political existence; and as they have a common
interest in being our carriers, and still more in preventing our
becoming theirs, they would in all probability combine to embarrass our
navigation in such a manner as would in effect destroy it, and confine
us to a PASSIVE COMMERCE. We should then be compelled to content
ourselves with the first price of our commodities, and to see the
profits of our trade snatched from us to enrich our enemies and
persecutors. That unequaled spirit of enterprise, which signalizes the
genius of the American merchants and navigators, and which is in itself
an inexhaustible mine of national wealth, would be stifled and lost,
and poverty and disgrace would overspread a country which, with wisdom,
might make herself the admiration and envy of the world.
There are rights of great moment to the trade of America which are
rights of the Union--I allude to the fisheries, to the navigation of the
Western lakes, and to that of the Mississippi. The dissolution of the
Confederacy would give room for delicate questions concerning the future
existence of these rights; which the interest of more powerful partners
would hardly fail to solve to our disadvantage. The disposition of Spain
with regard to the Mississippi needs no comment. France and Britain
are concerned with us in the fisheries, and view them as of the utmost
moment to their navigation. They, of course, would hardly remain long
indifferent to that decided mastery, of which experience has shown us
to be possessed in this valuable branch of traffic, and by which we are
able to undersell those nations in their own markets. What more natural
than that they should be disposed to exclude from the lists such
dangerous competitors?
This branch of trade ought not to be considered as a partial benefit.
All the navigating States may, in different degrees, advantageously
participate in it, and under circumstances of a greater extension of
mercantile capital, would not be unlikely to do it. As a nursery of
seamen, it now is, or when time shall have more nearly assimilated the
principles of navigation in the several States, will become, a universal
resource. To the establishment of a navy, it must be indispensable.
To this great national object, a NAVY, union will contribute in various
ways. Every institution will grow and flourish in proportion to the
quantity and extent of the means concentred towards its formation and
support. A navy of the United States, as it would embrace the resources
of all, is an object far less remote than a navy of any single State or
partial confederacy, which would only embrace the resources of a single
part. It happens, indeed, that different portions of confederated
America possess each some peculiar advantage for this essential
establishment. The more southern States furnish in greater abundance
certain kinds of naval stores--tar, pitch, and turpentine. Their wood
for the construction of ships is also of a more solid and lasting
texture. The difference in the duration of the ships of which the navy
might be composed, if chiefly constructed of Southern wood, would be of
signal importance, either in the view of naval strength or of national
economy. Some of the Southern and of the Middle States yield a greater
plenty of iron, and of better quality. Seamen must chiefly be drawn
from the Northern hive. The necessity of naval protection to external
or maritime commerce does not require a particular elucidation, no more
than the conduciveness of that species of commerce to the prosperity of
a navy.
An unrestrained intercourse between the States themselves will advance
the trade of each by an interchange of their respective productions, not
only for the supply of reciprocal wants at home, but for exportation
to foreign markets. The veins of commerce in every part will be
replenished, and will acquire additional motion and vigor from a free
circulation of the commodities of every part. Commercial enterprise
will have much greater scope, from the diversity in the productions of
different States. When the staple of one fails from a bad harvest or
unproductive crop, it can call to its aid the staple of another.
The variety, not less than the value, of products for exportation
contributes to the activity of foreign commerce. It can be conducted
upon much better terms with a large number of materials of a given value
than with a small number of materials of the same value; arising
from the competitions of trade and from the fluctuations of markets.
Particular articles may be in great demand at certain periods, and
unsalable at others; but if there be a variety of articles, it can
scarcely happen that they should all be at one time in the latter
predicament, and on this account the operations of the merchant would
be less liable to any considerable obstruction or stagnation.
The speculative trader will at once perceive the force of these
observations, and will acknowledge that the aggregate balance of the
commerce of the United States would bid fair to be much more favorable
than that of the thirteen States without union or with partial unions.
It may perhaps be replied to this, that whether the States are united
or disunited, there would still be an intimate intercourse between them
which would answer the same ends; this intercourse would be fettered,
interrupted, and narrowed by a multiplicity of causes, which in the
course of these papers have been amply detailed. A unity of commercial,
as well as political, interests, can only result from a unity of
government.
There are other points of view in which this subject might be placed, of
a striking and animating kind. But they would lead us too far into the
regions of futurity, and would involve topics not proper for a newspaper
discussion. I shall briefly observe, that our situation invites and our
interests prompt us to aim at an ascendant in the system of American
affairs. The world may politically, as well as geographically, be
divided into four parts, each having a distinct set of interests.
Unhappily for the other three, Europe, by her arms and by her
negotiations, by force and by fraud, has, in different degrees, extended
her dominion over them all. Africa, Asia, and America, have successively
felt her domination. The superiority she has long maintained has tempted
her to plume herself as the Mistress of the World, and to consider the
rest of mankind as created for her benefit. Men admired as profound
philosophers have, in direct terms, attributed to her inhabitants a
physical superiority, and have gravely asserted that all animals, and
with them the human species, degenerate in America--that even dogs cease
to bark after having breathed awhile in our atmosphere.(1) Facts have
too long supported these arrogant pretensions of the Europeans. It
belongs to us to vindicate the honor of the human race, and to teach
that assuming brother, moderation. Union will enable us to do it.
Disunion will will add another victim to his triumphs. Let Americans
disdain to be the instruments of European greatness! Let the thirteen
States, bound together in a strict and indissoluble Union, concur in
erecting one great American system, superior to the control of all
transatlantic force or influence, and able to dictate the terms of the
connection between the old and the new world!
PUBLIUS "Recherches philosophiques sur les Americains."
FEDERALIST No. 12
The Utility of the Union In Respect to Revenue
From the New York Packet. Tuesday, November 27, 1787.
HAMILTON
To the People of the State of New York:
THE effects of Union upon the commercial prosperity of the States have
been sufficiently delineated. Its tendency to promote the interests of
revenue will be the subject of our present inquiry.
The prosperity of commerce is now perceived and acknowledged by
all enlightened statesmen to be the most useful as well as the most
productive source of national wealth, and has accordingly become a
primary object of their political cares. By multiplying the means of
gratification, by promoting the introduction and circulation of the
precious metals, those darling objects of human avarice and enterprise,
it serves to vivify and invigorate the channels of industry, and to make
them flow with greater activity and copiousness. The assiduous merchant,
the laborious husbandman, the active mechanic, and the industrious
manufacturer,--all orders of men, look forward with eager expectation
and growing alacrity to this pleasing reward of their toils. The
often-agitated question between agriculture and commerce has, from
indubitable experience, received a decision which has silenced the
rivalship that once subsisted between them, and has proved, to the
satisfaction of their friends, that their interests are intimately
blended and interwoven. It has been found in various countries that, in
proportion as commerce has flourished, land has risen in value. And how
could it have happened otherwise? Could that which procures a freer vent
for the products of the earth, which furnishes new incitements to the
cultivation of land, which is the most powerful instrument in increasing
the quantity of money in a state--could that, in fine, which is the
faithful handmaid of labor and industry, in every shape, fail to augment
that article, which is the prolific parent of far the greatest part
of the objects upon which they are exerted? It is astonishing that so
simple a truth should ever have had an adversary; and it is one, among
a multitude of proofs, how apt a spirit of ill-informed jealousy, or
of too great abstraction and refinement, is to lead men astray from the
plainest truths of reason and conviction.
The ability of a country to pay taxes must always be proportioned, in
a great degree, to the quantity of money in circulation, and to the
celerity with which it circulates. Commerce, contributing to both these
objects, must of necessity render the payment of taxes easier, and
facilitate the requisite supplies to the treasury. The hereditary
dominions of the Emperor of Germany contain a great extent of fertile,
cultivated, and populous territory, a large proportion of which is
situated in mild and luxuriant climates. In some parts of this territory
are to be found the best gold and silver mines in Europe. And yet, from
the want of the fostering influence of commerce, that monarch can
boast but slender revenues. He has several times been compelled to
owe obligations to the pecuniary succors of other nations for the
preservation of his essential interests, and is unable, upon the
strength of his own resources, to sustain a long or continued war.
But it is not in this aspect of the subject alone that Union will be
seen to conduce to the purpose of revenue. There are other points of
view, in which its influence will appear more immediate and decisive. It
is evident from the state of the country, from the habits of the
people, from the experience we have had on the point itself, that it is
impracticable to raise any very considerable sums by direct taxation.
Tax laws have in vain been multiplied; new methods to enforce the
collection have in vain been tried; the public expectation has been
uniformly disappointed, and the treasuries of the States have remained
empty. The popular system of administration inherent in the nature of
popular government, coinciding with the real scarcity of money incident
to a languid and mutilated state of trade, has hitherto defeated every
experiment for extensive collections, and has at length taught the
different legislatures the folly of attempting them.
No person acquainted with what happens in other countries will be
surprised at this circumstance. In so opulent a nation as that of
Britain, where direct taxes from superior wealth must be much more
tolerable, and, from the vigor of the government, much more practicable,
than in America, far the greatest part of the national revenue is
derived from taxes of the indirect kind, from imposts, and from
excises. Duties on imported articles form a large branch of this latter
description.
In America, it is evident that we must a long time depend for the means
of revenue chiefly on such duties. In most parts of it, excises must
be confined within a narrow compass. The genius of the people will ill
brook the inquisitive and peremptory spirit of excise laws. The pockets
of the farmers, on the other hand, will reluctantly yield but scanty
supplies, in the unwelcome shape of impositions on their houses and
lands; and personal property is too precarious and invisible a fund to
be laid hold of in any other way than by the imperceptible agency of
taxes on consumption.
If these remarks have any foundation, that state of things which will
best enable us to improve and extend so valuable a resource must be
best adapted to our political welfare. And it cannot admit of a serious
doubt, that this state of things must rest on the basis of a general
Union. As far as this would be conducive to the interests of commerce,
so far it must tend to the extension of the revenue to be drawn from
that source. As far as it would contribute to rendering regulations for
the collection of the duties more simple and efficacious, so far it
must serve to answer the purposes of making the same rate of duties
more productive, and of putting it into the power of the government to
increase the rate without prejudice to trade.
The relative situation of these States; the number of rivers with which
they are intersected, and of bays that wash their shores; the facility
of communication in every direction; the affinity of language
and manners; the familiar habits of intercourse;--all these are
circumstances that would conspire to render an illicit trade between
them a matter of little difficulty, and would insure frequent evasions
of the commercial regulations of each other. The separate States or
confederacies would be necessitated by mutual jealousy to avoid the
temptations to that kind of trade by the lowness of their duties. The
temper of our governments, for a long time to come, would not permit
those rigorous precautions by which the European nations guard the
avenues into their respective countries, as well by land as by
water; and which, even there, are found insufficient obstacles to the
adventurous stratagems of avarice.
In France, there is an army of patrols (as they are called) constantly
employed to secure their fiscal regulations against the inroads of the
dealers in contraband trade. Mr. Neckar computes the number of these
patrols at upwards of twenty thousand. This shows the immense difficulty
in preventing that species of traffic, where there is an inland
communication, and places in a strong light the disadvantages with which
the collection of duties in this country would be encumbered, if by
disunion the States should be placed in a situation, with respect to
each other, resembling that of France with respect to her neighbors. The
arbitrary and vexatious powers with which the patrols are necessarily
armed, would be intolerable in a free country.
If, on the contrary, there be but one government pervading all the
States, there will be, as to the principal part of our commerce, but
ONE SIDE to guard--the ATLANTIC COAST. Vessels arriving directly from
foreign countries, laden with valuable cargoes, would rarely choose to
hazard themselves to the complicated and critical perils which would
attend attempts to unlade prior to their coming into port. They would
have to dread both the dangers of the coast, and of detection, as well
after as before their arrival at the places of their final destination.
An ordinary degree of vigilance would be competent to the prevention
of any material infractions upon the rights of the revenue. A few armed
vessels, judiciously stationed at the entrances of our ports, might at
a small expense be made useful sentinels of the laws. And the government
having the same interest to provide against violations everywhere,
the co-operation of its measures in each State would have a powerful
tendency to render them effectual. Here also we should preserve by
Union, an advantage which nature holds out to us, and which would be
relinquished by separation. The United States lie at a great distance
from Europe, and at a considerable distance from all other places
with which they would have extensive connections of foreign trade.
The passage from them to us, in a few hours, or in a single night,
as between the coasts of France and Britain, and of other neighboring
nations, would be impracticable. This is a prodigious security against a
direct contraband with foreign countries; but a circuitous contraband to
one State, through the medium of another, would be both easy and safe.
The difference between a direct importation from abroad, and an indirect
importation through the channel of a neighboring State, in small
parcels, according to time and opportunity, with the additional
facilities of inland communication, must be palpable to every man of
discernment.
It is therefore evident, that one national government would be able, at
much less expense, to extend the duties on imports, beyond comparison,
further than would be practicable to the States separately, or to any
partial confederacies. Hitherto, I believe, it may safely be asserted,
that these duties have not upon an average exceeded in any State three
per cent. In France they are estimated to be about fifteen per cent.,
and in Britain they exceed this proportion.(1) There seems to be nothing
to hinder their being increased in this country to at least treble their
present amount. The single article of ardent spirits, under federal
regulation, might be made to furnish a considerable revenue. Upon a
ratio to the importation into this State, the whole quantity imported
into the United States may be estimated at four millions of gallons;
which, at a shilling per gallon, would produce two hundred thousand
pounds. That article would well bear this rate of duty; and if it should
tend to diminish the consumption of it, such an effect would be equally
favorable to the agriculture, to the economy, to the morals, and to the
health of the society. There is, perhaps, nothing so much a subject of
national extravagance as these spirits.
What will be the consequence, if we are not able to avail ourselves of
the resource in question in its full extent? A nation cannot long exist
without revenues. Destitute of this essential support, it must resign
its independence, and sink into the degraded condition of a province.
This is an extremity to which no government will of choice accede.
Revenue, therefore, must be had at all events. In this country, if the
principal part be not drawn from commerce, it must fall with oppressive
weight upon land. It has been already intimated that excises, in their
true signification, are too little in unison with the feelings of the
people, to admit of great use being made of that mode of taxation; nor,
indeed, in the States where almost the sole employment is agriculture,
are the objects proper for excise sufficiently numerous to permit very
ample collections in that way. Personal estate (as has been before
remarked), from the difficulty in tracing it, cannot be subjected to
large contributions, by any other means than by taxes on consumption. In
populous cities, it may be enough the subject of conjecture, to occasion
the oppression of individuals, without much aggregate benefit to the
State; but beyond these circles, it must, in a great measure, escape the
eye and the hand of the tax-gatherer. As the necessities of the State,
nevertheless, must be satisfied in some mode or other, the defect of
other resources must throw the principal weight of public burdens on
the possessors of land. And as, on the other hand, the wants of the
government can never obtain an adequate supply, unless all the sources
of revenue are open to its demands, the finances of the community, under
such embarrassments, cannot be put into a situation consistent with
its respectability or its security. Thus we shall not even have the
consolations of a full treasury, to atone for the oppression of that
valuable class of the citizens who are employed in the cultivation of
the soil. But public and private distress will keep pace with each
other in gloomy concert; and unite in deploring the infatuation of those
counsels which led to disunion.
PUBLIUS
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