Pastor Alexander Hewatt on mercantilism, Trade, & Colonial Economy

  Hewatt, Alexander, An Historical Account of the Rise and Progress of the Colonies of South Carolina and Georgia, Volumes I and II (1779)

The Carolincans received protection to trade, a ready market, drawbacks and bounties, by their political and commercial connection with the mother country. The duties laid on many articles of foreign manufacture on their importation into Britain were drawn back, sometimes the whole, almost always a great part, on their exportation to the colonies. These drawbacks were always in favour of the consumers, and supplied the provincial markets with foreign goods at a rate equally cheap as if they had been immediately imported from the place where they were manufactured. Hence the colonists were exempted from those heavy duties which their fellow subjects in Britain were obliged to pay, on most articles of foreign manufacture which they consumed. Besides, upon the arrival of such goods in the country, the planters commonly had twelve months credit from the provincial merchant, who was satisfied with payment once in the year from all his customers.

So that to the consumers in Carolina, East-India goods, German manufactures, Spanish, Portugal, Madeira and Fyal wines came cheaper than to those in Great Britain. We have known coals, falt, and other ' ar ticles brought by way of ballast, sold cheaper in Charlestown than in London.

But the colonists had not only those drawbacks on foreign goods imported, but they were also allow ed bounties on several articles of produce exported. For the encouragement of her colonies Great Britain laid high duties on several articles imported froma foreign countries, and gave the colonists premiums and bounties on the same commodities. The planting tobacco was prohibited in England, in order to encourage it in America. The bounties on naval stores, indigo, hemp, and raw silk, while they proved an encouragement to industry, all terminated in favour of the plantations.

Nor ought the Caroline ans to forget the perfect freedom they enjoyed with respect to their trade with the West Indies, where they found a convenient and most excellent market for their Indian corn, rice, lumber, and falt provi fions, and in return had rum, unclayed sugar, coffee and molasses much cheaper than their fellow subjects in Britain.

I mention these things because many of the colonists are ignorant of the privileges and advantages they enjoy; for, upon a general view of their circumstances, and a comparison of their case with that of their fellow - subjects in Britain and Ireland, they must find they had much ground for content ment, and none for complaint.

ANOTHER circumstance we may mention to which few have paid sufficient attention. It is true, Great Britain had laid the colonists under some restraints with respect to their domestic manufactures and their trade to foreign ports, but however much such a system of policy might affect the more northern colonies, it was at this time rather serviceable than prejudicial to Carolina. It served to direct the views of the people to the culture of lands, which was both more profitable to themselves and beneficial to the mother country. 

Though they had plenty of beaver skins, and a few hats were manufactured from them, yet the price of labour was so high, that the merchant could send the skins to England, import hats made of them, and undersell the manufacturers of Carolina. The province also furnished some wool and cotton, but besore they could be made into cloth, they cost the consumer more money than the merchant demanded for the same goods imported. The province afforded leather, but before it could be prepared and made in to shoes, the price was equally high, and often higher, than that of shoes imported from Britain.

In like manner, with respect to many other articles, it would be for the advantage of the province as well as mo ther country to export the raw materials and import the goods manufactured. For while the inhabitants of Carolina can employ their hands to more advan tage in cultivating waste land, it will be their interest never to wear a woollen or linen rag of their own manufacture, to drive a nail of their own forging, nor use any sort of plate, iron, brass or stationary wares of their own making.

Until the province shall grow more populous, cultivation is the most profit able employment, and the labourer injures himself and family by preferring the less to the more profit able branch of industry. Few also are the restrictions upon trade, which, in effect, could be deemed hurtful; for, excepting thç vessels which traded to the southward of Cape Fini Iterre, and were obliged to return to England to cancel their bond before they sailed for Carolina, every other restraint may be said to be ultimately in favour of the province. It was the interest of such a flourish. ing colony to be always in debt to Great Britain, for the more labourers that were sent to it, the more ra pidly it advanced in riches.

Suppose the planters this year stand much indebted to the merchants, and, by reason of an unfavourable season, are rendered unable to answer the demands against them; the merchants, instead of ruining them, indulged them for another year, and perhaps intrusted them with double the fum for which they stood indebted. This has frequently been found the most certain method of obtaining pay ment. In like manner the merchants must have in dulgence from England, the primary source of credit. If the province could not obtain such indulgence from any part of the world as from the mother country, it must be for its interest to support its credit with those generous friends who were both able and disposed to give it. To lodge the yearly produce of the province in the hands of those English creditors as soon as pof fible, is the surest means of supporting this credit.

Be fides, the London merchants being the best judges of the markets of Europe, can of course sell the staple commodities to the best advantage. The centrical situation of that city was favourable for intelligence; her merchants are famous over the world for their extensive knowledge in trade; they well knew the ports where there was the greatest demand for the commodity; all which were manifestly in favour of the province in which it was raised. 

Were the planters to have the choice of their market, it is very doubtful whether such liberty would be for their interest. Were they to export their produce on their own bottom, they would certainly be great losers. Some who have made the attempt have honestly confessed the truth. While it divided their attention, it engaged them in affairs to which they were in general very great strangers. Even the provincial merchants themselves are not always perfect judges of the markets in Europe, nor could they have obtained fuch unlimited credit in any other channel than that cir cumscribed by the laws of their country. Here is a co-operation of a number of persons united for pro moting the interest and advantage of one another, and placed in circumstances and situations well adap ted for that purpose. So that, in fact, it is not for the interest of Carolina, in its present advancing state, to be free from debt, far less of its planters to engage in trade, pr its inhabitants in manufactures.