FEDERALIST No. 11



The Utility of the Union in Respect to Commercial Relations and a Navy

For the Independent Journal.

Saturday, November 24, 1787



HAMILTON



To the People of the State of New York:



THE importance of the Union, in a commercial light, is one of those

points about which there is least room to entertain a difference of

opinion, and which has, in fact, commanded the most general assent of

men who have any acquaintance with the subject. This applies as well to

our intercourse with foreign countries as with each other.



There are appearances to authorize a supposition that the adventurous

spirit, which distinguishes the commercial character of America, has

already excited uneasy sensations in several of the maritime powers of

Europe. They seem to be apprehensive of our too great interference in

that carrying trade, which is the support of their navigation and the

foundation of their naval strength. Those of them which have colonies in

America look forward to what this country is capable of becoming, with

painful solicitude. They foresee the dangers that may threaten their

American dominions from the neighborhood of States, which have all the

dispositions, and would possess all the means, requisite to the creation

of a powerful marine. Impressions of this kind will naturally indicate

the policy of fostering divisions among us, and of depriving us, as far

as possible, of an ACTIVE COMMERCE in our own bottoms. This would answer

the threefold purpose of preventing our interference in their

navigation, of monopolizing the profits of our trade, and of clipping

the wings by which we might soar to a dangerous greatness. Did not

prudence forbid the detail, it would not be difficult to trace, by

facts, the workings of this policy to the cabinets of ministers.



If we continue united, we may counteract a policy so unfriendly to our

prosperity in a variety of ways. By prohibitory regulations, extending,

at the same time, throughout the States, we may oblige foreign countries

to bid against each other, for the privileges of our markets. This

assertion will not appear chimerical to those who are able to appreciate

the importance of the markets of three millions of people -- increasing

in rapid progression, for the most part exclusively addicted to

agriculture, and likely from local circumstances to remain so -- to any

manufacturing nation; and the immense difference there would be to the

trade and navigation of such a nation, between a direct communication in

its own ships, and an indirect conveyance of its products and returns,

to and from America, in the ships of another country. Suppose, for

instance, we had a government in America, capable of excluding Great

Britain (with whom we have at present no treaty of commerce) from all

our ports; what would be the probable operation of this step upon her

politics? Would it not enable us to negotiate, with the fairest prospect

of success, for commercial privileges of the most valuable and extensive

kind, in the dominions of that kingdom? When these questions have been

asked, upon other occasions, they have received a plausible, but not a

solid or satisfactory answer. It has been said that prohibitions on our

part would produce no change in the system of Britain, because she could

prosecute her trade with us through the medium of the Dutch, who would

be her immediate customers and paymasters for those articles which were

wanted for the supply of our markets. But would not her navigation be

materially injured by the loss of the important advantage of being her

own carrier in that trade? Would not the principal part of its profits

be intercepted by the Dutch, as a compensation for their agency and

risk? Would not the mere circumstance of freight occasion a considerable

deduction? Would not so circuitous an intercourse facilitate the

competitions of other nations, by enhancing the price of British

commodities in our markets, and by transferring to other hands the

management of this interesting branch of the British commerce?



A mature consideration of the objects suggested by these questions will

justify a belief that the real disadvantages to Britain from such a

state of things, conspiring with the pre-possessions of a great part of

the nation in favor of the American trade, and with the importunities of

the West India islands, would produce a relaxation in her present

system, and would let us into the enjoyment of privileges in the markets

of those islands elsewhere, from which our trade would derive the most

substantial benefits. Such a point gained from the British government,

and which could not be expected without an equivalent in exemptions and

immunities in our markets, would be likely to have a correspondent

effect on the conduct of other nations, who would not be inclined to see

themselves altogether supplanted in our trade.



A further resource for influencing the conduct of European nations

toward us, in this respect, would arise from the establishment of a

federal navy. There can be no doubt that the continuance of the Union

under an efficient government would put it in our power, at a period not

very distant, to create a navy which, if it could not vie with those of

the great maritime powers, would at least be of respectable weight if

thrown into the scale of either of two contending parties. This would be

more peculiarly the case in relation to operations in the West Indies. A

few ships of the line, sent opportunely to the reinforcement of either

side, would often be sufficient to decide the fate of a campaign, on the

event of which interests of the greatest magnitude were suspended. Our

position is, in this respect, a most commanding one. And if to this

consideration we add that of the usefulness of supplies from this

country, in the prosecution of military operations in the West Indies,

it will readily be perceived that a situation so favorable would enable

us to bargain with great advantage for commercial privileges. A price

would be set not only upon our friendship, but upon our neutrality. By a

steady adherence to the Union we may hope, erelong, to become the

arbiter of Europe in America, and to be able to incline the balance of

European competitions in this part of the world as our interest may

dictate.



But in the reverse of this eligible situation, we shall discover that

the rivalships of the parts would make them checks upon each other, and

would frustrate all the tempting advantages which nature has kindly

placed within our reach. In a state so insignificant our commerce would

be a prey to the wanton intermeddlings of all nations at war with each

other; who, having nothing to fear from us, would with little scruple or

remorse, supply their wants by depredations on our property as often as

it fell in their way. The rights of neutrality will only be respected

when they are defended by an adequate power. A nation, despicable by its

weakness, forfeits even the privilege of being neutral.



Under a vigorous national government, the natural strength and resources

of the country, directed to a common interest, would baffle all the

combinations of European jealousy to restrain our growth. This situation

would even take away the motive to such combinations, by inducing an

impracticability of success. An active commerce, an extensive

navigation, and a flourishing marine would then be the offspring of

moral and physical necessity. We might defy the little arts of the

little politicians to control or vary the irresistible and unchangeable

course of nature.



But in a state of disunion, these combinations might exist and might

operate with success. It would be in the power of the maritime nations,

availing themselves of our universal impotence, to prescribe the

conditions of our political existence; and as they have a common

interest in being our carriers, and still more in preventing our

becoming theirs, they would in all probability combine to embarrass our

navigation in such a manner as would in effect destroy it, and confine

us to a PASSIVE COMMERCE. We should then be compelled to content

ourselves with the first price of our commodities, and to see the

profits of our trade snatched from us to enrich our enemies and p

rsecutors. That unequaled spirit of enterprise, which signalizes the

genius of the American merchants and navigators, and which is in itself

an inexhaustible mine of national wealth, would be stifled and lost, and

poverty and disgrace would overspread a country which, with wisdom,

might make herself the admiration and envy of the world.



There are rights of great moment to the trade of America which are

rights of the Union -- I allude to the fisheries, to the navigation of

the Western lakes, and to that of the Mississippi. The dissolution of

the Confederacy would give room for delicate questions concerning the

future existence of these rights; which the interest of more powerful

partners would hardly fail to solve to our disadvantage. The disposition

of Spain with regard to the Mississippi needs no comment. France and

Britain are concerned with us in the fisheries, and view them as of the

utmost moment to their navigation. They, of course, would hardly remain

long indifferent to that decided mastery, of which experience has shown

us to be possessed in this valuable branch of traffic, and by which we

are able to undersell those nations in their own markets. What more

natural than that they should be disposed to exclude from the lists such

dangerous competitors?



This branch of trade ought not to be considered as a partial benefit.

All the navigating States may, in different degrees, advantageously

participate in it, and under circumstances of a greater extension of

mercantile capital, would not be unlikely to do it. As a nursery of

seamen, it now is, or when time shall have more nearly assimilated the

principles of navigation in the several States, will become, a universal

resource. To the establishment of a navy, it must be indispensable.



To this great national object, a NAVY, union will contribute in various

ways. Every institution will grow and flourish in proportion to the

quantity and extent of the means concentred towards its formation and

support. A navy of the United States, as it would embrace the resources

of all, is an object far less remote than a navy of any single State or

partial confederacy, which would only embrace the resources of a single

part. It happens, indeed, that different portions of confederated

America possess each some peculiar advantage for this essential

establishment. The more southern States furnish in greater abundance

certain kinds of naval stores -- tar, pitch, and turpentine. Their wood

for the construction of ships is also of a more solid and lasting

texture. The difference in the duration of the ships of which the navy

might be composed, if chiefly constructed of Southern wood, would be of

signal importance, either in the view of naval strength or of national

economy. Some of the Southern and of the Middle States yield a greater

plenty of iron, and of better quality. Seamen must chiefly be drawn from

the Northern hive. The necessity of naval protection to external or

maritime commerce does not require a particular elucidation, no more

than the conduciveness of that species of commerce to the prosperity of

a navy.



An unrestrained intercourse between the States themselves will advance

the trade of each by an interchange of their respective productions, not

only for the supply of reciprocal wants at home, but for exportation to

foreign markets. The veins of commerce in every part will be

replenished, and will acquire additional motion and vigor from a free

circulation of the commodities of every part. Commercial enterprise will

have much greater scope, from the diversity in the productions of

different States. When the staple of one fails from a bad harvest or

unproductive crop, it can call to its aid the staple of another. The

variety, not less than the value, of products for exportation

contributes to the activity of foreign commerce. It can be conducted

upon much better terms with a large number of materials of a given value

than with a small number of materials of the same value; arising from

the competitions of trade and from the fluctations of markets.

Particular articles may be in great demand at certain periods, and

unsalable at others; but if there be a variety of articles, it can

scarcely happen that they should all be at one time in the latter

predicament, and on this account the operations of the merchant would be

less liable to any considerable obstruction or stagnation. The

speculative trader will at once perceive the force of these

observations, and will acknowledge that the aggregate balance of the

commerce of the United States would bid fair to be much more favorable

than that of the thirteen States without union or with partial unions.



It may perhaps be replied to this, that whether the States are united or

disunited, there would still be an intimate intercourse between them

which would answer the same ends; this intercourse would be fettered,

interrupted, and narrowed by a multiplicity of causes, which in the

course of these papers have been amply detailed. A unity of commercial,

as well as political, interests, can only result from a unity of

government.



There are other points of view in which this subject might be placed, of

a striking and animating kind. But they would lead us too far into the

regions of futurity, and would involve topics not proper for a newspaper

discussion. I shall briefly observe, that our situation invites and our

interests prompt us to aim at an ascendant in the system of American

affairs. The world may politically, as well as geographically, be

divided into four parts, each having a distinct set of interests.

Unhappily for the other three, Europe, by her arms and by her

negotiations, by force and by fraud, has, in different degrees, extended

her dominion over them all. Africa, Asia, and America, have successively

felt her domination. The superiority she has long maintained has tempted

her to plume herself as the Mistress of the World, and to consider the

rest of mankind as created for her benefit. Men admired as profound

philosophers have, in direct terms, attributed to her inhabitants a

physical superiority, and have gravely asserted that all animals, and

with them the human species, degenerate in America -- that even dogs

cease to bark after having breathed awhile in our atmosphere.[1] Facts

have too long supported these arrogant pretensions of the Europeans. It

belongs to us to vindicate the honor of the human race, and to teach

that assuming brother, moderation. Union will enable us to do it.

Disunion will will add another victim to his triumphs. Let Americans

disdain to be the instruments of European greatness! Let the thirteen

States, bound together in a strict and indissoluble Union, concur in

erecting one great American system, superior to the control of all

transatlantic force or influence, and able to dictate the terms of the

connection between the old and the new world!



PUBLIUS

"Recherches philosophiques sur les Americains."