These principles appear to us so plain and palpable that they need only to be stated. If, among the class of traders, who want more credit than they find themselves able to get, any one is still disposed to object, we take leave to ask on what principles he conducts his own business at home. Does he trust anybody, and everybody, without asking a question? When a stranger comes into the neighborhood, does he open an account with him at once, and to an unlimited extent, without inquiring into his affairs? Does he think it mean, or dishonorable, to send to the place from which the stranger came, and ascertain how far he was regarded worthy of credit there? Does he think the former neighbors of the new comer mean, or dishonorable, if they tell him frankly what they think, thereby securing him a good customer, or saving him from a bad one? By no means. The principle is universal. It belongs to the retail credit business, as well as to the wholesale. It governs the trader, selling his hundreds, or thousands, as well as the importer, in selling his tens of thousands, or millions. Confidence, as we have before said, is the life of credit, and knowledge is the life of confidence. Business cannot go on without it, except by dwindling down to a rigid cast, or barter trade.

He

But it is not trade alone that acts upon these principles, and uses these means of applying them. The whole business of banking, marine, fire and life insurances, &c., &c., is conducted in the same way. A man who would take out a policy on his life, must undergo a rigid examination, and answer, in writing, a series of searching and difficult questions, an error, wilful or otherwise, in any one of which, forfeits his policy. He must do more. must find some personal acquaintance who shall confirm, in writing, the statements he has made. And then, the physician of the company must pass judgment upon the case. After the policy is delivered, the company still keep a watchful eye upon the insured; and, in case of death, institutes a rigid scrutiny to ascertain, if possible, whether he had not the seeds of death in him at the time when the policy was issued.

The same scrutiny is used in fire and marine insurance. Yet nobody feels aggrieved by it. There is not, probably, a single vessel of any importance, that is likely to come into the port of New York, so as to be within the atmosphere of our insurance companies, that is not already fully and minutely described in their registers-the time and place of building, the name of the builder, owner, and master; the quantity of oak, pine, hack metack; the number and quality of her beams, knees, &c.: with the quantity and weight of iron, or copper, with which she is fastened. Go to an office, and ask the rate of insurance in any particular vessel. They are ready with an nnswer at once. It is already booked. They know the class and character of the vessel as well as the owner does. Yet nobody complains. It belongs to their business. They could not exist without it.

The same is true with reference to the professions. The very trader who complains of espionage on the part of the mercantile agency, when it inquires into his ability and honesty, in giving a note, does the same thing, not only when he takes a note from another, but when he sends that note to a lawyer for collection. He sends it only to one in whom he has confidence, that he will pay over what he collects. If he does not know such a lawyer himself, he is careful to inquire till he finds one. The man who expects to be entrusted, to any extent, with the business or property of another, without an inquiry being instituted into all those circumstances which have a bearing on his responsibility and trustworthiness, can have had but little

experience in the ways of the world. The man who objects to such investigation, gives, in doing so, prima facie evidence that the result would be unfavorable to himself.

Art. V. THE PRINCIPLES OF FREE TRADE.

FREEMAN HUNT, Esq., Editor of the Merchants' Magazine, etc.

DEAR SIR-The preliminary steps, as you will perceive from the public papers, have been already taken to organize a comprehensive Free Trade League, whose object is to free Trade and Commerce from Legislative Restrictions, and to establish Direct Taxation for the support of the General Government. Before this number of your Magazine shall reach its subscribers the organization, will probably be complete, and presented to public notice.

As your pages have always been open to "both sides" of this great question, I hope your sense of justice and impartiality will lead you to give place to the following compendious summary of Free Trade principles, which I have drawn up. Although deeply interested in theorganization and success of the League, I cannot submit to you this Digest as the Banner under which the League will enter into the conflict, for, in fact, that flag has not yet been raised; but I can submit it to you as a Banner of Freedom which, there is at least one, who is prepared to defend. My conviction of truth would not allow me to say less than this; nor my modesty permit me to say more. Respectfully yours, &c.,

New York, December 9th, 1850.

SAMUEL BEMAN.

SYNOPSIS OF THE PRINCIPLES OF FREE TRADE.

Freedom of Commerce a Natural Right. The Right of Property is a perfect Natural Right-but would be rendered imperfect without the right, also, freely to use it in Trade and Commerce, and to turn it to profit.

Freedom of Commerce is, therefore, a Natural Right. And it is also in accordance with the natural feelings and sympathies of mankind.

All Trade is Profitable. All Trade is profitable, otherwise men would not pursue it. Therefore:-1. What one gains, the other does not lose. 2. The value of imports will exceed that of exports. 3. To remove commercial restrictions is to increase commerce; and to increase commerce is to increase wealth. 4. Foreign trade is equally profitable with the home trade; otherwise men would pursue the latter in preference to the former.

Its Moral Influence. Commerce, if permitted to develop and spread in obedience to its natural tendencies, multiplies merchants and customers, and business connections between foreign nations, and thus binds them together in mutual dependence-assimilates manners, customs, and opinions-diffuses in each nation the experience, wisdom, science, and art, enjoyed by all others-subdues the spirit of war-softens political enmities--moderates religious antipathies.

Under its benign influence, mutual and extensive interests spring up; intercourse first increases, then ripens into friendship and love, till at last, even governments feel its humanizing power, yield to its influence, and PERMA

NENT PEACE BECOMES A COMMERCIAL NECESSITY.

The establishment of commercial freedom, and the abolition of war, its expenses, and its horrors will be cotemporary events.

The Mightiest Civilizing Power on Earth. The spirit of trade and commerce, now abroad in the earth, is mightier than the powers of all human governments combined; and its supremacy they must all, ere long, acknowledge.

What religion, morality, eloquence, and the law of nations, have attempted in vain, the spirit of commerce is now achieving for it is teaching nations and governments the comity, the love, the truth, and the virtue, and especially the enlightened self-interest which so becomingly prevail in the social relations of civilized life.

The spirit of commerce is the mightiest civilizing power on earth.

An Argument for Free Trade. The same arguments which so forcibly demonstrate the necessity, advantage, and beauty of free trade between neighboring families and villages-between town and country-between Maine and Texas, or New York and San Francisco-between England on the one side, and her colonies, Ireland, Scotland, or Wales on the other:— also demonstrate an equal necessity, advantage, and beauty of free trade between the United States and Canada, and the other British Provincesbetween the United States on the one side, and Mexico, the South American States, England, and every other division of the globe on the other. And, conversely, the same arguments which would restrict trade between Vermont and Canada-Texas and Mexico-New York and Liverpool, should also restrict it between Massachussetts and California, and between Great Britain and her provinces and colonies.

A Commonwealth of Nations. Commerce evidently suggests a Commonwealth of Nations, based upon mutual interests, as the best method of fulfilling the dictates of religion and of the law of nations, and of realizing the hopes of Christianity, philanthropy, and general civilization.

A Measure of National Influence. The moral, civil, and political influence of nation upon nation, will be in direct proportion to the amount of commercial intercourse between them.

Freedom of the People as the Freedom of their Commerce. As is the freedom of commerce, so will be the freedom of the people and of their government. For it is a historical fact, that a free commerce was never found but in a free people.

Creates Mutual International Dependence. The effect of commercial freedom, in creating mutual international dependence, is like that of free trade between individuals and sections of the same country. It becomes a bond of dependence between the nations adopting it.

National Independence is National Barbarism. Absolute National Independence implies total non-intercourse. National independence, therefore, must be national barbarism.

Gives Firmness to Business. Free trade will give firmness and stability to every branch of business, and especially to manufactures, by securing them from all future legislative attacks.

Opens New Markets. Commerce originates new desires, inspires new wants, creates new tastes, and thus furnishes new and powerful motives to fresh industry. Therefore, the removal of commercial restrictions would open new and better markets, and give increased profits and wealth to all engaged in the production of exports for foreign markets.

Teaches Benevolence and Love. Commercial nations stand to each other in the double relation of merchant and customer. And as no merchant can gain wealth from impoverished customers, it is, therefore, not less agreeable

to the dictates of Christian love, and to the law of nations, than to the spirit of gain, that the progress and prosperity of other nations should be as dear

to us as our own.

Increases Industry. One of the leading arguments used in favor of an impost tax is, that the citizen may avoid it if he pleases-the importations being regarded not as necessaries, but as luxuries that may be dispensed with. The labor of a country, therefore, without commerce, is obviously confined to the supply of its own necessities and comforts, and is measured by them. It can buy nothing, because it sells nothing. It works for itself alone. Now give this country foreign commerce, that is accused of dealing in luxuries, and it is clear that you increase its industry to the extent of its exports, which, by commerce, are converted into luxuries. For it was never alleged that a nation enjoyed less domestic comforts and necessaries for indulging in foreign luxuries.

Therefore, the true way to furnish employment to industry, is not by impost taxes to limit it to the bare production of necessaries, but to add exports, which commerce will convert into comforts and luxuries. Thus the same domestic industry will with one hand, directly procure necessaries at home, and with the other, indirectly produce comforts and luxuries from abroad. A nation without commerce only works with one arm and commerce with restriction, is labor with one arm in a sling.

Therefore, it can never be true that foreign commerce diminishes the amount of domestic industry by contributing to support the pauper labor of Europe.

The term labor, or industry, is not to be deceptively limited to manufacturers of cotton, wool, iron, and other fabrics consumed at home-a class that comprises but about one-tenth of American industry-but equally includes agriculturists, sailors, and all other classes engaged in the production of commodities consumed abroad.

The Free Circulation of Labor. The free circulation of labor is not less necessary than the free circulation of money and the equalization of both is alike important. So that the absurdity and impolicy of enacting laws to detain foreign money in the country-on the principle of the exploded British "Mercantile Theory"-are exactly on a level with the absurdity and impolicy of enacting laws to keep foreign labor, or its products, out of the country, on the principle of the mis-named "American system."

The effects of Protective Legislation. To stimulate manufacturers by enacting laws to aggravate prices-called protective legislation-is to stimulate the aggregation of people in manufacturing towns, who would add greater wealth and strength to the country by dispersing, and engaging in those operations which would be most lucrative without legislation.

"Protection," Mere Aggravation of Prices. We deny that any legislative body can even add wealth to the State by the mere use of ink and parchment in the engrossment of a law. To admit this would be to deny that wealth is exclusively the product of labor.

The most that legislation can directly achieve is to aggravate prices to consumers. But the prices thus aggravated must injuriously affect consumers; for were it their interest to pay the aggravated prices coerced by legislation, then why should the people not pay them of their own accord without the compulsion and penalties of the law?

Therefore, "Legislative Protection" is a delusive misnomer-misleading the popular mind-inasmuch as it does not take effect directly upon the

parties benefited thereby-to wit, the manufacturers-but upon those who are injured thereby-to wit, the people at large-whom it compels to pay $1 30, for what they could otherwise buy for $1 00, and who can never be convinced it is for their interest to pay the higher instead of the lower price.

Therefore, "Legislative Protection of Manufacturers" is nothing but "Legislative Aggravation of Prices," and does not widely differ from legislative robbery, inasmuch as it is an invasion of the right of property, being the forcible and felonious taking of money from one man against his consent, putting him in bodily fear, and then giving that money to another to whom he owed nothing.

Therefore, legislative aggravation of prices is unjust, because it injures one party for the benefit of another.

The same remarks will apply to every impost tax to the extent that it is demanded, or desired, as a benefit to the home manufacturers, and not for

revenue.

Protection a Monstrous Paradox. A protective impost tax involves the monstrous paradox that, if it should come about that government were to be sustained by magic, or by "the stamp of the foot," and no longer need the impost tax, there would still be the same clamorous demand for it as there ever has been; for it was never known that any man desired the burden of a revenue tax for its own sake alone; thus proving that the only foundation of its merit is the interest of its friends. It is certainly monstrous for people to cry for taxes, as if they were blessings!

Protection a Monopoly. "Protection" is a monopoly. For if it did not thus operate, its advantages, by becoming general, would be generally acknowledged.

Effect of Retaliation. As a measure of retaliation, an impost tax can have no advantage with the nation or the party possessing the least wealth. For, as all trade is mutually profitable, the impost that curtails it takes an equal sum from both parties; and the loss of an equal sum by two traders can be easiest borne by the wealthiest. In a conflict, if the weaker party strike a blow that reacts with equal force upon himself, he must be the greatest sufferer; because, by the repetition of the blows, he will soonest fail. Why injure ourselves to injure others?

Protective Argument Changed. During the first thirty years of our national existence, American statesmen cautiously recommended encouragement to American manufacturers as a war measure-for national defence and independence-and of course equally advantageous to every citizen.

But during the last thirty years the argument has been essentially changed, and the removal of restrictions has generally been opposed on the ground of injuriously affecting monopolies, or the vested interests of a very small portion of the population. And generally at this day the anticipation of foreign hostilities rarely constitutes the basis of an argument in favor of protection.

A Bounty better than "Protection." If the manufacturers require support from the people for purposes of national defense, or independence, or elevation of character, then let the people grant them a direct bounty to any amount they (the grantors) deem expedient. But if the people are unwil ling to do this, then why should wealthy manufacturers be permitted to extract from the people by fraud and deception what they cannot obtain by truth and honesty?