The merchants are much alarmed at this step of the Company, fearing it will prevent, in a great degree, the remittances from their correspondents by so much or near it as the sales of the teas amount to; for it is beyond a doubt, that the people in America, if they admit the teas, (which I much doubt,) will be tempted to purchase them with the very money arising from the sales of muslins, callicoes, Persians, &c., bought of the Company instead of sending it to the merchants in England, and thereby tend to encrease the distress which is already too severely felt, for want of remittances. And I should not be surprized at the merchants forming a resolution similar to that of the dealers, viz., not to purchase anything from a Company who are interfering so essentially with their trade, and striking at the root of their interests. I am of opinion, if a proper application was made to the ministry, aided by a petition from the American merchants, it might produce a relaxation of that disagreeable and fatal duty of 3d. pr lb., and in case of success I could almost promise that in the course of six months there would be exported not less than one million of pounds of tea, and further, that the usual annual export would be upon an average four millions of pounds of teas. This mode would relieve the Company from its present load, and place the correspondence and connection in its usual and natural channel. But admitting that the ministry would not comply with such a request, is it not too hasty a resolution before answers are come from America if they will receive the teas through the channel of the merchants, and particularly when they see the drawback is encreased from 14 to 24 pr cent. ad valorem, and thereby they are enabled to introduce that article cheaper from hence than from Holland.
It is well known to every gentleman conversant in trade, that on account of some disagreeable Acts of Parliament passed here, the people of America formed a resolution, which was too generally adhered to, not to import any goods from hence. This resolution continued for two years. However, the merchants of New York, (who are men of understanding and liberal principles,) foreseeing the fatal consequences that attend England & the Provinces by a continuance of dis-union with the mother-country, summoned a meeting of the principal inhabitants of the town, and then came to a compromise with the people, that in case they would agree to admit all other goods, they promised not to import any teas from England, under very severe penalties, until the Act imposing a duty of 3d. pr lb. was repealed, and the several captains of ships in the trade were enjoined upon pain of forfeiting the good esteem of the inhabitants to comply therewith. The like resolutions were agreed to in Philadelphia & South Carolina.
There is another difficulty which occurs to me in this business, and that is, there is not so much specie in the country as would pay for the quantity said is intended to be exported. The Company should be very cautious who they appointed to receive the produce of the sales, for should the contractor for money have that power, who are the general drawers of bills, it would enable them to make a monopoly of the ready specie, and to make exchange advance 25 pr ct., to the loss of the remitter.
Thus have I stated the principal objections to the measure, and in compliance with my promise, I shall give you my opinion relative to its introduction, & the proper modes of sale, admitting the Company persevere in their resolutions of exporting the teas on their own account.
A ship should be hired by the Company, capable of carrying the quantity they intend to export, and at so much pr month. She should call in the first place at Boston, and there land 300 chests, under the care of one of the Company's own clerks; from thence to New York, and there land 300 chests, in the like manner as at Boston; from thence to Philadelphia, and there land 300 chests, as before, and from thence to Carolina, and there land 100 chests, under the care of the clerk of the Company, all of which may be performed in the course of three months from her sailing from hence, until her arrival at her last destined port, provided the people in the different Provinces don't disturb the voyage upon the arrival of the teas. Public notice should be given in the papers of each Province at least one month preceding the sale, and the following valuation prices affixed for the buyers to bid upon, subject to the allowances, as limited in your own sales: Boston, @ 2s., lawful money, pr lb.; New York, 2s. 9d., currency; Philadelphia, 2s. 3d., currency; Charles Town, South Carolina, 10s. pr lb., currency. These prices are for Boheas. The several clerks of the Company can with ease correspond with each other, as there is a constant and regular communication by post, so that if there should be an over quantity at one place, and a deficiency at another, it may be supplied. The clerks should have directions to pay the proceeds of the sales to some eminent merchant at each Province, who should be a person well acquainted with the article, and one who has great weight with the other merchants and people, both as to esteem, rank and property; this merchant to remit the money by good bills of exchange, which he must guarantee, and a security given here for such a trust.
Great care should be had to regulate the sale by the consumption of each Province, and not to be held at the same time, but to follow each other by the distance of a fortnight, so that in case there should be more buyers at one Province than the quantity will furnish, they may have an opportunity of writing or going to the next sale at another Province.
I fear there may be an opposition made by some of the Provinces upon a surmise that Government is aiding in this plan, and mean to establish principle and right of taxation, for the purpose of a revenue, which at present is very obnoxious, as such great care should be had not to employ either paymaster, collector, or any other gentleman under the immediate service of the Crown, to receive the money.
Garlick Hill, 1st July, 1773.
Gentlemen:
In compliance with your desire, we have reflected on the business & expence which will attend the sale of and remitting for such teas as the East India Company may ship to North America, and considering that none but gentlemen of known property, integrity and of experience in trade can, with propriety and safety to the Company, be employed therein, we humbly conceive that five pr cent. commission, and one pr cent. for truckage, warehouse rent, brokerage, and other incidental charges, making in the whole six pr cent. on the gross sales, is as little as the business can be transacted for. And we further beg leave to suggest that no person ought to be employed who will not give security to the Company, in London, for faithfully following such instructions, as they may from time to time receive from them, for remitting to the Company all monies which they may receive on account of teas sold, first deducting the above six pr cent., together with such freight and duties as they may have paid on account thereof, and interest thereon, till reimbursed, such remittances to be made in bills of exchange, within two months after receiving the money, which bills, to be drawn upon their security in London, payable sixty days after sight, or in specie, at the Company's risk and expence; if in bills of exchange, the security to be obliged to accept and pay them. Should the Company determine to ship teas on their own account and risk to North America, we presume to recommend to their service, Benjamin Faneuil, Junr., Esqr., & Joshua Winslow, Esqr.,[31] of Boston, jointly, to transact their business, for whom we are ready to give security to the amount of ten thousand pounds for their performance of the before mentioned conditions, and in like manner a security of two thousand pounds for John Butler, Esqr., of Halifax, in Nova Scotia, who we also beg leave to recommend to the Company's service. We are, with great respect, gentlemen,