It appears from the foregoing statement that all the carrying trade to
and from South America, by water, is by foreign steamers; that only
four of these are American lines; that the railroads are generally
owned and operated by Englishmen; that the bankers and merchants are
Englishmen or Germans; that {24} many of the mines, cattle ranches,
coffee plantations and other estates are owned by non-resident
foreigners; and that the largest consumer of South American products
is the United States, although this country sells few of its
manufactures and products to South America.
The English steamers, in the usual course of trade, load with English
dry-goods consigned to English houses in South America, where they are
sold and the proceeds invested in coffee and other products, which are
sent in the same vessels to the United States; there sold, and the
money invested in our produce for carriage to England. The English
therefore obtain the profits on manufacture, on the freight to South
America, on the sale of the goods in South America, on the freight
from South America to the United States, on the sale of those goods,
and finally on the freight of the American breadstuffs carried to
Europe. For the successful prosecution of any trade between two
countries, it is essential that each shall produce what the other
wants: Thus, we raise breadstuffs which are not grown on the Caribbean
sea nor in the valley of the Amazon, nor in Peru or upper Chili, and
we also manufacture goods required in all parts of South America,
where they have few factories; there, coffee, wool, India rubber,
cacao and other articles are produced, which we require. Here,
therefore, are the factors necessary for a prosperous trade. Such a
trade we formerly enjoyed with South America: In 1852, six hundred
United States vessels entered the harbor of Buenos Ayres, or more than
twice as many as those of all other nations combined; now only two per
cent. of the shipping entering that harbor belongs to us. Our war
came, iron steamers took the place of wooden sailing ships, we levied
a duty on coffee and rubber, South America levied a duty on our
manufactures, other countries subsidized lines of steamers, while we
refused all subsidies; and our trade with South America rapidly fell
off, as freights were carried cheaper in foreign than in American
ships, and the trade of South America passed from the United States to
England, Germany and France.
It is said that we cannot regain this trade, because we cannot,
without protection maintain our own manufactures, much less compete
with the Europeans in an open market; and therefore that it will be a
waste of money to subsidize our vessels. But the larger the market the
cheaper we can manufacture, and we can {25} surely find a large and
new market for our breadstuffs. It is worth while to make the
experiment at least, to give our vessels the same subsidy and
protection that has been given to the European lines, and to our
merchants and bankers, an opportunity to regain the trade with South
America. At first the odds will be greatly against us; but if we show
the same energy and ability in cultivating trade with South America
that our fathers exhibited, and that we have shown in other
directions, we must ultimately succeed.
It is now proposed to tax the products of South America, unless the
South American states reciprocate and admit our breadstuffs and
manufactures free. If this scheme can be carried out, a large and
prosperous commerce will be established between North America and
South America, and American houses will be started in the large cities
to dispose of our manufactures and ship the products to South America.
By this interchange, our manufacturers and farmers will find a market
for their goods and products, our mercantile navy freight for its
vessels, and our bankers and merchants a profitable business in the
large cities of South America.