Download Founding Father`s Comments on Free Trade

Founding Father’s Comments on Free Trade
Most of this country’s founders were proponents of “free trade” (though the concept was
different from what we understand it to mean today); however, confronted with
protectionist policies from Britain and other European countries, their attitudes (and their
actions) changed.
Everyone knows of Hamilton’s “Report on Manufactures” which encouraged
protectionism to grow American manufacturing. Less well-known is Jefferson’s "Report
on the Privileges and Restrictions on the Commerce of the United States in Foreign
Countries". In this report, Jefferson advocated for free trade with those countries willing
to practice it; however, he noted in the report that "free commerce and navigations are not
to be given in exchange for restrictions and vexations; nor are they likely to produce a
relaxation of them”.
Washington also advocated that the nation remain as self-sufficient as possible to ensure
its independence. In his first annual message (January, 1790) he stated a "free people
ought not only to be armed but disciplined; . . . and their safety and interest require that
they should promote such manufactories as tend to render them independent of others for
essential, particularly military, supplies."
Although Hamilton’s “Report on Manufactures” (1791) advocated for economic
nationalism, he did so from a realistic assessment of relations among nations. He states
in this report that "if the system of perfect liberty to industry and commerce were the
prevailing system of nations," individual nations producing agricultural products might
beneficially forgo the production of manufactures. But he perceived that "the reigning
policy of manufacturing nations" was to preserve "a monopoly of the domestic market to
its own manufacturers." In such circumstances, "the principles of distributive justice"
dictated that the United States pursue a ''similar policy" to secure for its citizens "a
reciprocity of advantages."
After the War of 1812, British manufacturers dumped inventories built up during the war
on the U.S. market. The suspicion was that the British were attempting to put upstart
American industries out of business. This suspicion was confirmed by Lord Brougham, a
member of Parliament at the time, who stated "It was well worth while to incur a loss
upon the first exportation, in order by the glut, to stifle in the cradle, those rising
manufactures in the United States, which the war had forced into existence, contrary to
the natural course of things". Because of this, American trade policy became more
nationalistic.
In an 1819 letter, John Adams said “I am old enough to remember the war of 1745, and
its end; the war of 1755, and its close; the war of 1775, and its termination; the war of
1812, and its pacification. Every one of these wars has been followed by a general
distress;embarrassment on commerce, destruction of manufactures, fall of the price of
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produce and of lands, similar to those we feel at the present day, and all produced by the
same causes. I have wondered that so much experience has not taught us more caution.
The British merchants and manufactures, immediately after the peace, disgorged upon us
all their stores of merchandise and manufactures, not only without profit, but at certain
loss for a time, with the express purpose of annihilating all our manufacturers, and
ruining all our manufactories. The cheapness of these articles allures us into extravagance
and luxury, involves us in debt, exhausts our resources, and at length produces universal
complaint”.
All the above are quoted from Alfred Eckes’ Opening America's Market: U.S. Foreign
Trade Policy Since 1776 (1995, University of North Carolina Press).