PARIS, July 23, 1787.
SIR,--I had the honor, a few days ago, of putting into the hands of
your Excellency, some observations on the other articles of American
produce, brought into the ports of this country. That of our tobaccos,
from the particular form of their administration here, and their
importance to the King's revenues, has been placed on a separate line,
and considered separately. I will now ask permission to bring that
subject under your consideration.
The mutual extension of their commerce was among the fairest advantages
to be derived to France and the United States, from the independence of
the latter. An exportation of eighty millions, chiefly in raw
materials, is supposed to constitute the present limits of the commerce
of the United States with the nations of Europe; limits, however, which
extend as their population increases. To draw the best proportion of
this into the ports of France, rather than of any other nation, is
believed to be the wish and interest of both. Of these eighty millions,
thirty are constituted by the single article of tobacco. Could the
whole of this be brought into the ports of France, to satisfy its own
demands, and the residue to be re-vended to other nations, it would be
a powerful link of commercial connection. But we are far from this.
Even her own consumption, supposed to be nine millions, under the
administration of the monopoly to which it is farmed, enters little, as
an article of exchange, into the commerce of the two nations. When this
article was first put into Farm, perhaps it did not injure the
commercial interests of the kingdom; because nothing but British
manufactures were then allowed to be given in return for American
tobaccos. The laying the trade open, then, to all the subjects of
France, could not have relieved her from a payment in money.
Circumstances are changed; yet the old institution remains. The body to
which this monopoly was given, was not mercantile. Their object is to
simplify as much as possible, the administration of their affairs. They
sell for cash; they purchase, therefore, with cash. Their interest,
their principles and their practice, seem opposed to the general
interest of the kingdom, which would require, that this capital article
should be laid open to a free exchange for the productions of this
country. So far does the spirit of simplifying their operations govern
this body, that relinquishing the advantages to be derived from a
competition of sellers, they contracted some time ago with a single
person (Mr. Morris), for three years' supplies of American tobacco, to
be paid for in cash. They obliged themselves too, expressly, to employ
no other person to purchase in America, during that term. In
consequence of this, the mercantile houses of France, concerned in
sending her productions to be exchanged for tobacco, cut off, for three
years, from the hope of selling these tobaccos in France, were of
necessity to abandon that commerce. In consequence of this, too, a
single individual, constituted sole purchaser of so great a proportion
of the tobaccos made, had the price in his own power. A great reduction
in it took place, and that, not only on the quantity he bought, but on
the whole quantity made. The loss to the States producing the article,
did not go to cheapen it for their friends here. Their price was fixed.
What was gained on their consumption, was to enrich the person
purchasing it; the rest, the monopolists and merchants of other
countries. The effect of this operation was vitally felt by every
farmer in America, concerned in the culture of this plant. At the end
of the year, he found he had lost a fourth or a third of his revenue;
the State, the same proportion of its subjects of exchange with other
nations: the manufactures of this country, too, were either not to go
there at all, or go through the channel of a new monopoly, which, freed
from the control of competition in prices and qualities, was not likely
to extend their consumption. It became necessary to relieve the two
countries from the fatal effects of this double monopoly. I had the
honor of addressing a letter, on the 15th day of August, 1785, to his
late excellency, the Count de Vergennes, upon this subject, a copy of
which I do myself the honor herein to enclose. The effectual mode of
relief was to lay the commerce open. But the King's interest was also
to be guarded. A committee was appointed to take this matter into
consideration; and the result was, an order to the Farmers General,
that no such contract should be made again. And to furnish such aliment
as might keep that branch of commerce alive, till the expiration of the
present contract, they were required to put the merchants in general,
on a level with Mr. Morris, for the quantity of twelve or fifteen
thousand hogsheads a year. That this relief, too, might not be
intercepted from the merchants of the two suffering nations by those of
a neighboring one, and that the transportation of so bulky an article
might go to nourish their own shipping, no tobaccos were to be counted
of this purchase, but those brought in French or American vessels. Of
this order, made at Bernis, his Excellency, Count de Vergennes, was
pleased to honor me with a communication, by a letter of the 30th of
May, 1786, desiring that I would publish it as well in America, as to
the American merchants in France. I did so; communicating it to
Congress at the same time. This order, thus viewed with the
transactions which produced it, will be seen to have been necessary;
and its punctual and candid execution has been rendered still more so,
by the speculations of the merchants, entered into on the faith of it.
Otherwise, it would become the instrument of their ruin instead of
their relief. A twelve month has elapsed some time since; and it is
questioned whether the Farmers General have purchased, within that
time, the quantity prescribed, and on the conditions prescribed. It
would be impossible for the merchants to prove the negative; it will be
easy for the Farmers General to show the affirmative, if it exists. I
hope that a branch of commerce of this extent will be thought
interesting enough to both nations, to render it the desire of your
Excellency to require, as I deem it my duty to ask, a report of the
purchases they have made, according to the conditions of the order of
Bernis, specifying, in that report, 1, the quantities purchased; 2, the
prices paid; 3, the dates of the purchase and payment; 4, the flag of
the vessel in which imported; 5, her name; 6, her port of delivery; and
7, the name of the seller. The four first articles make part of the
conditions required by the order of Bernis; the three last may be
necessary for the correction of any errors which should happen to arise
in the report.
But the order of Bernis was never considered but as a temporary relief.
The radical evil will still remain. There will be but one purchaser in
the kingdom, and the hazard of his refusal will damp every mercantile
speculation. It is very much to be desired, that before the expiration
of this order, some measure may be devised, which may bring this great
article into free commerce between the two nations. Had this been
practicable at the time it was put into Farm, that mode of collecting
the revenue would probably never have been adopted; now that it has
become practicable, it seems reasonable to discontinue this mode, and
to substitute some of those practised on other imported articles, on
which a revenue is levied, without absolutely suppressing them in
commerce. If the revenue can be secured, the interests of a few
individuals will hardly be permitted to weigh against those of as many
millions, equally subjects of his Majesty, and against those, too, of a
nation allied to him by all the ties of treaty, of interest and of
affection. The privileges of the most favored nation, have been
mutually exchanged by treaty. But the productions of other nations,
which do not rival those of France, are suffered to be bought and sold
freely within the kingdom. By prohibiting all his Majesty's subjects
from dealing in tobacco, except with a single company, one third of the
exports of the United States are rendered uncommerciable here. This
production is so peculiarly theirs, that its shackles affect no other
nation. A relief from these shackles, will form a memorable epoch in
the commerce of the two nations. It will establish at once a great
basis of exchange, serving like a point of union to draw to it other
members of our commerce. Nature, too, has conveniently assorted our
wants and our superfluities, to each other. Each nation has exactly to
spare, the articles which the other wants. We have a surplus of rice,
tobacco, furs, peltry, potash, lamp oils, timber, which France wants;
she has a surplus of wines, brandies, esculent oils, fruits and
manufactures of all kinds, which we want. The governments have nothing
to do, but _not to hinder_ their merchants from making the exchange.
The difference of language, laws and customs, will be some obstacle for
a time; but the interest of the merchants will surmount them. A more
serious obstacle is our debt to Great Britain. Yet, since the treaty
between this country and that, I should not despair of seeing that debt
paid, in part, with the productions of France, if our produce can
obtain here, a free course of exchange for them. The distant prospect
is still more promising. A century's experience has shown, that we
double our numbers every twenty or twenty-five years. No circumstance
can be foreseen, at this moment, which will lessen our rate of
multiplication for centuries to come. For every article of the
productions and manufactures of this country, then, which can be
introduced into the habit there, the demand will double every twenty or
twenty-five years. And to introduce the habit, we have only to let the
merchants alone. Whether we may descend, by a single step, from the
present state, to that of perfect freedom of commerce in this article,
whether any, and what, intermediate operation may be necessary to
prepare the way to this, what cautions must be observed for the
security of his Majesty's revenue, which we do not wish to impair, will
rest with the wisdom of his ministers, whose knowledge of the subject
will enable them to devise the best plans, and whose patriotism and
justice will dispose them to pursue them. To the friendly dispositions
of your Excellency, of which we have had such early and multiplied
proofs, I take the liberty of committing this subject, particularly
trusting that some method may be devised, of reconciling the collection
of his Majesty's revenues, with the interests of the two nations; and
have the honor of assuring you, of those sincere sentiments of esteem
and respect, with which I am your Excellency's most obedient, and most
humble servant.