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and of the principles of international commerce. The second William Pitt was Chancellor of the Exchequer at the time the provisional articles of peace with the United States were signed, in November, 1782; and in March, 1783, he introduced into the House of Commons a bill for regulating temporarily the intercourse between the two nations, so far as dependent upon the action of Great Britain, until it should be possible to establish a mutual arrangement by treaty. This measure reflected not only a general attitude of good will towards America, characteristic of both father and son, but also the impression which had been made upon the younger man by the writings of Adam Smith. Professing as its objects "to establish intercourse on the most enlarged principles of reciprocal benefit," and "to evince the disposition of Great Britain to be on terms of most perfect amity with the United States of America," the bill admitted the ships and vessels of the United States, with the merchandise on board, into all the ports of Great Britain in the same manner as the vessels of other independent states; that is, manned three-fourths by American seamen. This preserved the main restrictions of the Navigation Act, protective of British navigation; but the merchandise, even if brought in American ships, was relieved of all alien duties. These, however, wherever still existing for other nations, were light, and this remission slight;65 a more substantial concession was a rebate upon all exports from Great Britain to the United States, equal to that allowed upon goods exported to the colonies. As regarded intercourse with the West Indies, there was to be made in favor of the thirteen states a special and large remission in the rigor of the Act; one affecting both commerce and navigation. To British colonies, by long-standing proscription, no ships except British had been admitted to export or import. By the proposed measure, the United States, alone among the nations of the world, were to be allowed to import freely any goods whatsoever, of their own growth, produce, or manufacture, in their own ships; on the same terms exactly as British vessels, if these should engage in the traffic between the American continent and the islands. Similarly, freedom to export colonial produce was granted to American bottoms from the West Indies to the United States. Both exports and imports, thus to be authorized, were to be "liable to the same duties and charges only as the same merchandise would be subject to, if it were the property of British native-born subjects, and imported in British ships, navigated by British seamen."66 In short, while the primary purpose doubtless was the benefit of the islands, the effect of the measure, as regarded the West India trade, was to restore the citizens of the now independent states to the privileges they had enjoyed as colonists. The carrying trade between the islands and the continent was conceded to them, and past experience gave ground to believe it would be by them absorbed.

      It was over this concession that the storm of controversy arose and raged, until the outbreak of the French Revolution, by the conservative reaction it provoked in other governments, arrested for the time any change of principle in regard to colonial administration, whatever modifications might from time to time be induced by momentary exigencies of policy. The question immediately argued was probably on all hands less one of principle than of expediency. Superior as commercial prosperity and the preservation of peace were to most other motives in the interest of Pitt's mind, he doubtless would have admitted, along with his most earnest opponents, that the fostering of the national carrying trade, as a nursery to the navy and so contributory to national defence, took precedence of purely commercial legislation. With all good-will to America, his prime object necessarily was the welfare of Great Britain; but this he, contrary to the mass of public opinion, conceived to lie in the restoration of the old intercourse between the two peoples, modified as little as possible by the new condition of independence. He trusted that the habit of receiving everything from England, the superiority of British manufactures, a common tongue, and commercial correspondences only temporarily interrupted by the war, would tend to keep the new states customers of Great Britain chiefly, as they had been before; and what they bought they must pay for by sending their own products in return. This constraint of routine and convenience received additional force from the scarcity of capital in America, and its abundance in Great Britain, relatively to the rest of Europe. The wealthiest nation could hold the Americans by their need of accommodations which others could not extend.

      In so far there probably was a general substantial agreement in Great Britain. The Americans had been consumers to over double the amount of the West Indies before the war, and it was desirable to retain their custom. Nor was the anticipation of success deceived. Nine years later, despite the rejection of Pitt's measure, an experienced American complained "that we draw so large a proportion of our manufactures from one nation. The other European nations have had the eight years of the war (of Independence) exclusively, and the nine years of peace in fair competition, and do not yet supply us with manufactures equivalent to half of the stated value of the shoes made by ourselves."67 In the first year of the government under the Constitution, from August, 1789, to September 30, 1790, after seven years of independence, out of a total of not quite $20,000,000 imports to the United States, over $15,000,000 were from the dominions of Great Britain;68 and nearly half the exports went to the same destination, either as raw material for manufactures, or as to the distributing centre for Europe. The commercial dependence is evident; it had rather increased than diminished since the Peace. As regards American navigation, the showing was somewhat better; but even here 217,000 tons British had entered United States ports, against a total of only 355,000 American. As of the latter only 50,000 had sailed from Great Britain, it is clear that the empire had retained its hold upon its carrying trade, throughout the years intervening between the Peace and the adoption of the Constitution.

      As regards the commercial relations between the two nations, these results corresponded in the main with the expectations of those who frustrated Pitt's measure. He had conceived, however, that it was wise for Great Britain not only to preserve a connection so profitable, but also to develop it; to multiply the advantage by steps which would promote the prosperity and consequent purchasing power of the communities involved. This was the object of his proposed concession. During the then recent war, no part of the British dominions—save besieged Gibraltar—had suffered so severely as the West Indies. Though other causes concurred, this was due chiefly to the cessation of communications with the revolted colonies, entailing failure of supplies indispensable to their industries. Despite certain alleviations incidental to the war, such as the capture of American vessels bound to foreign islands, and the demand for tropical products by the British armies and fleets, there had been great misery among the population, as well as financial loss. The restoration of commercial intercourse would benefit the continent as well as the islands; but the latter more. The prosperity of both would redound to the welfare of Great Britain; for the one, though now politically independent, was chained to her commercial system by imperative circumstances, while of the trade of the other she would have complete monopoly, except for this tolerance of a strictly local traffic with the adjoining continent. As for British navigation, the supreme interest, Pitt believed that it would receive more enlargement from the increase of productiveness in the islands, and of consequent demand for British manufactures, than it would suffer loss by American navigation. More commerce, more ships. Then, as at the present day, the interests of Great Britain and of the United States, in their relations to a matter of common external concern, were not opposed, but complementary; for the prosperity of the islands through America would make for the prosperity of Great Britain through the islands.

      This, however, was just the point disputed; and, in default of the experience which the coming years were to furnish, fears not wholly unreasonable, from the particular point of view of sea power, as then understood, were aroused by the known facts of American shipping enterprise, both as ship-builders and carriers, even under colonial trammels. John Adams, who was minister to Great Britain from 1785 to 1788, had frequent cause to note the deep and general apprehension there entertained of the United States as a rival maritime state. The question of admission to the colonial trade, as it presented itself to most men of the day, was one of defence and of offence, and was complicated by several considerations. As a matter of fact, there was no denying the existence of that transatlantic commercial system, in which the former colonies had been so conspicuous a factor, the sole source of certain supplies to an important market, reflecting therein exactly Great Britain's own position relatively to the consumers of the European continent. The prospect of reviving

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