"The cane gradually adapted itself to the climate. Different kinds of cane were introduced, skill was acquired by experience, capital increased, machinery and steam power applied, improvements adopted, and expenses diminished.
"At the close of the war, Congress, for the purpose of increasing the revenue, and of protecting the domestic industry, increased the rate of duty on sugar half a cent a pound, as a part of a general system. This had a most decisive effect in bringing this great national interest to its present state, and they have now finally triumphed over every obstacle.
"It was more than twenty years before they could produce 40,000 hogsheads; and during the greater part of that time very little profit was made upon the capital employed.
"The increase of capital, the introduction of machinery, the diversion of labour from other less profitable pursuits, the acquisition of skill, and, above all, the confidence of the people in the protection of the government, have vastly augmented the means of production. It now promises an ample supply for the consumption of the country, and a steady but moderate profit. They are in a course of experiment, that will in a short period establish this great interest upon a scale adequate to the wants of the people.
"Under the faith of the laws, they have embarked their capital in the production of one of the great necessaries of life, and in support of a national system, which they understood it was the object of the government to establish. They have opened a new and extensive field of agricultural industry; directed labour to more profitable employment; maintained the value of slaves; and increased the internal commerce of the country. They have contributed their full share to all the duties paid on other articles. They came into this Union, charged with an immense public debt, which was greatly increased by the war, in which they suffered in common: they have freely contributed their portion to its payment."
He proceeds to show that the value of lands and slaves "is predicated upon the value of the sugar, and that depends upon the rate of duty established by the laws." The effects of a reduction of the duty is thus detailed.
"The present price of sugar, at 5-1/2 cents, is sustained by a duty of 3 cents a pound. If that duty was removed, foreign sugar would be sold 3 cents less, and ours would fall in the same proportion. That reduction would bring sugar below the actual cost, and therefore it could not be made, even if slaves and lands cost nothing. A reduction of 2 cents would bring the price to the exact amount of 3-1/2 cents a pound, the precise cost of the sugar, independent of the capital, and therefore would yield nothing to the cultivator. A reduction of 1 cent would bring sugar to 4-1/2 cents, which would leave only 1 cent profit to pay for the capital—that is, the lands and slaves. That would diminish the present profit one half, and the value of the slaves in the same proportion. This reduction of duty operates entirely upon the profit; and a reduction of one-third of the duty operates a reduction of one-half of the profit, and thereby one-half of the value of the capital, and one-half of the slaves. Capital has been invested in Louisiana by the present standard of value. A reduction in that standard would produce a corresponding reduction in the value of all property. A reduction of one-third of the duty would sink half the value of property in the state, and ruin all those who have made engagements upon the faith of the laws."
The writer subsequently presents very precise and satisfactory statements, to show the capital required for this branch of agriculture, and the prices which are necessary to sustain it; with some calculated anticipations of its increase, if not crushed by foreign competition. Should it be asked, what interest have the other states of the Union in this concern? It may be a very profitable employment of the money and slaves of the rich planters of Louisiana; but is this a fair reason for imposing heavy duties on a necessary of life, thus enhancing its cost to those who consume it? To meet this inquiry, and remove the objection contained in it; to show that the citizens of the states who consume the sugar have an immediate participation in the profits of its cultivator, Mr. Johnston says—
"It is said that this is a local concern, interesting only to Louisiana. The slaves are taken, as beforementioned, from cotton and tobacco, and are furnished by the Southern States.
"The provisions and animals come from the Western States.