Threatening attitude of Massachusetts.
Massachusetts consequently passed an Act for the regulation of navigation and commerce, whereby they prohibited the exportation of any American produce or manufacture from their ports in vessels owned by British subjects after the 1st of August, 1785; with a provisional exception in favour of those British settlements whose governors should reverse their proclamations against the admission of American vessels into their ports. They also levied several extra duties to be paid by vessels belonging to foreigners, and especially by British subjects. There was, however, a proviso, containing a permission for newly-built vessels constructed in Massachusetts, though partly or wholly owned by British subjects, to take in cargoes upon equal terms with the citizens of the United States, but only for their first departures.
Several States, following the example of Massachusetts, levied duties of various kinds on foreign tonnage. In some of the States 1s. per ton was imposed, while in others foreign vessels were subjected to a tax of from 3s. to no less than 5s. per ton, counterparts, in many respects, to the ancient navigation laws of England. However prejudicial to other nations, these high and conflicting rates led to a general misunderstanding among the States themselves, which contributed about as much as any foreign competition would then have done to check the progress of American navigation. But a common interest soon made it manifest to the people of the United States that these differential, or rather protective duties could not be maintained, and that some general regulations were essential to the safety and welfare of the Union, and to the development of its trade and navigation. In short, the different States found it absolutely necessary to part with a portion of their individual liberty in order to secure the combined and wholesome action of the entire Union. Indeed they soon perceived the necessity of confiding to Congress alone the power of regulating and controlling their intercourse with foreign nations; and, with this object in view, a convention was called to revise the articles of the confederation.
Constitution of the United States.
By the constitution of the United States (Art. 1, Sec. 8, 9, 10), Congress was vested with the power of regulating commerce with foreign nations. It was therefore stipulated, on the recommendation of the convention, that no tax or duty shall be laid on articles exported from any State; that “no preference shall be given by any regulation of commerce or revenue to the ports of one State over that of another;” and that no vessels bound to or from one State should be obliged to enter, clear, or pay duties in another. Further, that “no State shall, without the consent of Congress, lay any impost or duty on imports or exports except what may be absolutely necessary for executing its respective laws; that the net produce of all duties or imposts laid by any State on imports or exports shall be for the use of the treasury of the United States, and that all such laws shall be subject to the revision and control of Congress.”
The good effects of a united government.
The adoption of this paper constitution, as yet not quite in force to its legitimate extent in some of the Southern States, conferred upon the United States the sovereign attributes of a great nation. It secured the domestic tranquillity then so much required, and laid the foundation for amicable treaties of commerce and navigation with foreign powers. Placed as the people of the United States were, without any relations of amity with other nations, but happily unshackled with any trading monopolies to limit their free action, it was obviously to their interest to invite other countries to their shores, and to form with them friendly alliances of commerce and navigation. Accordingly their then Secretary of State, seeing that some of the States were opposed to protection, proclaimed with great wisdom the principles of free-trade; and in his manifesto on this subject[307] remarked that “instead of embarrassing commerce under piles of regulating laws, duties, and prohibitions, it should be relieved from all its shackles in all parts of the world. Would even a single nation,” he continued, “begin with the United States this system of free commerce, it would be advisable to begin with that nation.”
Unfortunately other nations, and more especially Great Britain, as well as the Northern States of America, were not then prepared to adopt, pure and simple, the principles he propounded; and although American vessels were then admitted to the British possessions in the East Indies upon the most favoured footing, the great majority of the English people had no inclination to yield one iota of their ancient navigation laws without an equivalent, as they considered these laws to be the chief, if not the sole cause of their maritime success and supremacy. Nor would the English government make any concessions with regard to Light dues and Local charges, of which the shipowners of the United States justly complained, and have still, though to a much less extent, some cause for complaint. The Board of Trade contended that these charges were of ancient establishment and the property of private persons or of corporate bodies, and that the funds arising from them were in many instances applicable to public works or charitable purposes.
Maritime laws and laws respecting neutrals.
Feeling on both sides the water.