History of merchant shipping and ancient commerce, Volume 3 (of 4)

by W. S. Lindsay

The Debate, March 1849.

The House of Commons, though seldom much interested in maritime and, as was conceived, in intricate questions, was, on this occasion, full to the overflowing. The subject was, indeed, one of crowning interest. The repeal of the Navigation Laws would, as the extreme Free-traders had remarked, sweep away “the last rag of Protection;” as others more pompously had expressed it, would form the “capital of that majestic column of unfettered commerce which their own hands had reared.” The Protectionists, on the other hand, looked on the measure as the final overthrow of our naval power and the destruction of our maritime commerce. The shipowners mustered in great numbers about the Commons; and the author, who had not, at that time, found a seat in the body of the House, was favoured with one in the reporters’ gallery.

Speech of Mr. Herries.

Mr. Herries was once more selected as the champion of the shipping interest; and, on the question being put that “this Bill be now read a second time,” moved an amendment that it “be read a second time that day six months.” If Mr. Herries was not gifted with great eloquence, he possessed at least great experience, and a thorough knowledge of his subject. His speech in opposition to the Bill was of the most elaborate character. He insisted, that the more the measure was examined, the more the shipowners and the public were adverse to its passing. He examined at great length the correspondence from our colonies and from Foreign Powers, contending that that from Canada was useless, if not repugnant. In point of fact, he said, taking his text from the report of the Shipowners’ Society, the opinion of the Canadians had changed, and the public sentiment there appeared decidedly adverse to repeal. A similar change of feeling seemed to have come over the West India colonists, and they had shifted their ground. Germany would do nothing until the central German government was appointed, which, in his opinion, would probably be about the Greek Kalends! The United States pointed out the existing law, but could not answer us till Congress had been consulted. The replies from other nations were gone over seriatim, and the conduct of Belgium in adhering to what was thought best for Belgian interests was applauded as a wise and liberal course. No foreign Government had given a distinct answer except Belgium, and that was not a favourable one. We had abandoned, he said, some of our restrictive laws in relation to European navigation, and wisely abandoned them, because we could not maintain them any longer. That was the ground of Mr. Huskisson’s modifications: but we ought, at present, to hold what we could, and to concede only what we must, in matters of navigation. He admitted, amidst the derisive cheers of the repeal party, that the Navigation Laws imposed restraints on commerce, and so far operated unfavourably; but the question to be considered was whether the gain to be derived from the abolition of these laws was a sufficient inducement for running the risk of the loss to which this abolition must lead. All prudence and sound judgment was opposed to repeal. The voice now rising from every quarter would soon reach those in whose hands the government was placed, and they would learn that their first duty was to uphold British interests, maintain British commerce, and promote British enterprise.

Mr. J. Wilson.

Mr. James Wilson, who replied at great length to Mr. Herries, had a few years previously started a Free-trade journal, the ‘Economist,’ and, having obtained a seat in the House of Commons, became a staunch and formidable advocate of an extreme Free-trade policy. He was a master in statistics, and, as figures were the rage at the time, he happily seized the moment which led to a political fortune, and, using his knowledge of them to the best advantage became a valuable adjunct to the ministry of the day. His speech on the present occasion showed the beneficial action of Free-trade in the removal of needless restrictions, and, further, that, though our merchants had been exposed to great competition, the aggregate commerce of the country had been proportionally augmented; he therefore asked why the shipping interest should be exempted from a rivalry which other interests had successfully encountered. He then demonstrated the little real advantage the Navigation Laws gave to British shipowners, who, by the very policy of those laws, were exposed to competition in the long-voyage trade in the very places where competition was most injurious to them; and, further, that all the tests fairly applied to the question proved the ability of British shipowners to compete with the foreigner. In some cases, too, he held that the Navigation Laws acted as a protection to foreign at the expense of British ships; and while, practically, of little benefit to the shipowner, there could be no doubt that these restrictions operated injuriously, especially in emergencies, on consumers, and, ultimately of course, on shipowners themselves. If a commercial marine was necessary to support our navy, Free-trade had increased and would increase that marine.

Question of reciprocity.

But perhaps the most important part of Mr. Wilson’s speech was that relating to the question of reciprocity. The general question was, indeed, beginning to resolve itself into three points. All parties had come to the conclusion that some change was necessary; but it remained to be decided whether reciprocity, conditional legislation and retaliation, should be the principle of the measure. Mr. Gladstone last year had strongly urged the principle of reciprocity in some cases by special treaties. Mr. Wilson very strongly combated this principle. Nothing he thought would be more prejudicial to the spread of Free-trade principles among continental nations than that this country should sanction the notion entertained by foreign Governments, that the British Government was willing to make concessions not so much for the general benefit of commerce, as for the sake of other concessions, to be thus obtained from foreign countries in favour of England. Foreign nations considered England as an old and wealthy nation, and expected to be overreached in forming commercial treaties.

He objected, therefore, to the principle of reciprocity, as it would actually throw difficulties in the way of those who were willing to meet us. On any principle of reciprocity they must adopt that of equivalents, and this was impossible. Other countries had no colonies, and had, consequently, no equivalent advantages to offer in return for those conferred by England. He admitted, however, that there was a great distinction between reciprocity in produce and reciprocity in shipping. If they imposed retaliatory duties on the produce of various countries, for the purpose of meeting duties imposed on their own goods, they did not visit the same interests with this retaliation. For example, cotton and woollen goods were sent to Prussia: we received from Prussia, corn, timber, and wool. If Prussia imposed high duties on cotton and woollen goods, we could only retaliate by putting high duties on the corn, timber, and wool of Prussia when imported into England. The Prussian Government punished the woollen manufacturer and the cotton manufacturer of England by imposing high duties on their goods; and, then, the English Legislature punished them again by imposing high duties on the raw material from which those goods were manufactured. Nothing could be more monstrous than such a course of proceeding. If we acted on the principle of reciprocity, we ought to give perfect freedom of trade to those who gave perfect freedom of trade to us. If the United States admitted our goods duty free, we could not do less than admit the corn of the United States free.

Doubtful even in the case of shipping.