Memoir, Correspondence, And Miscellanies, From The Papers Of Thomas Jefferson
Chapter 37 : I find the consumption of tobacco in France estimated at from fifteen to thirty million

I find the consumption of tobacco in France estimated at from fifteen to thirty millions of pounds. The most probable estimate, however, places it at twenty-four millions.

This costing eight sous the pound, delivered in

a port of France, amounts to...............9,600,000 livres.

Allow six sous a pound, as the average cost of the

different manufactures.....................7,200,000

The revenue which the King derives from this, is

something less than.......................30,000,000

Which would make the cost of the whole... 46,800,000

But it is sold to the consumers at an average of

three livres the pound....................72,000,000

There remain then for the expenses

of collection............................ 25,200,000 livres.

This is within a sixth as much as the King receives, and so gives nearly one half for collecting the other. It would be presumption in me, a stranger, to suppose my numbers perfectly accurate. I have taken them from the best and most disinterested authorities I could find. Your Excellency will know how far they are wrong; and should you find them considerably wrong, yet I am persuaded you will find, after strictly correcting them, that the collection of this branch of the revenue still absorbs too much.

My apology for making these remarks will, I hope, be found in my wishes to improve the commerce between the two nations, and the interest which my own country will derive from this improvement. The monopoly of the purchase of tobacco in France, discourages both the French and American merchant from bringing it here, and from taking in exchange the manufactures and productions of France. It is contrary to the spirit of trade, and to the dispositions of merchants, to carry a commodity to any market where but one person is allowed to buy it, and where, of course, that person fixes its price, which the seller must receive, or reexport his commodity, at the loss of his voyage thither. Experience accordingly shows, that they carry it to other markets, and that they take in exchange the merchandise of the place where they deliver it. I am misinformed, if France has not been furnished from a neighboring nation with considerable quant.i.ties of tobacco, since the peace, and been obliged to pay there in coin, what might have been paid here in manufactures, had the French and American merchants bought the tobacco originally here. I suppose, too, that the purchases made by the Farmers General, in America, are paid for chiefly in coin, which coin is also remitted directly hence to England, and makes an important part of the balance supposed to be in favor of that nation against this. Should the Farmers General, by themselves, or by the company to whom they may commit the procuring these tobaccos from America, require, for the satisfaction of government on this head, the exportation of a proportion of merchandise in exchange for them, it would be an unpromising expedient. It would only commit the exports, as well as imports, between France and America, to a monopoly, which, being secure against rivals in the sale of the merchandise of France, would not be likely to sell at such moderate prices as might encourage its consumption there, and enable it to bear a compet.i.tion with similar articles from other countries. I am persuaded this exportation of coin may be prevented, and that of commodities effected, by leaving both operations to the French and American merchants, instead of the Farmers General. They will import a sufficient quant.i.ty of tobacco, if they are allowed a perfect freedom in the sale; and they will receive in payment, wines, oils, brandies, and manufactures, instead of coin; forcing each other, by their compet.i.tion, to bring tobaccos of the best quality; to give to the French manufacturer the full worth of his merchandise; and to sell to the American consumer at the lowest price they can afford; thus encouraging him to use, in preference, the merchandise of this country.

It is not necessary that this exchange should be favored by any loss of revenue to the King. I do not mean to urge any thing which shall injure either his Majesty or his people. On the contrary, the measure I have the honor of proposing, will increase his revenue, while it places both the seller and buyer on a better footing. It is not for me to say, what system of collection may be best adapted to the organization of this government; nor whether any useful hints may be taken from the practice of that country, which has heretofore been the princ.i.p.al entrepot for this commodity. Their system is simple and little expensive. The importer there, pays the whole duty to the King: and as this would be inconvenient for him to do before he has sold his tobacco, he is permitted, on arrival, to deposite it in the King's warehouse, under the locks of the King's officer. As soon as he has sold it, he goes with the purchaser to the warehouse; the money is there divided between the King and him, to each his proportion, and the purchaser takes out the tobacco. The payment of the King's duty is thus ensured in ready money.

What is the expense of its collection, I cannot say; but it certainly need not exceed six livres a hogshead of one thousand pounds. That government levies a higher duty on tobacco than is levied here. Yet so tempting and so valuable is the perfect liberty of sale, that the merchant carries it there and finds his account in doing so.

If, by a simplification of the collection of the King's duty on tobacco, the cost of that collection can be reduced even to five per cent., or a million and a half, instead of twenty-five millions; the price to the consumer will be reduced from three to two livres the pound. For thus I calculate.

The cost, manufacture, and revenue, on twenty-four million pounds

of tobacco being (as before stated)................46,800,000 livres.

Five per cent, on thirty millions of livres,

expenses of collection .............................1,500,000

Give what the consumers would pay, being

about two livres a pound...........................48,300,000

But they pay at present three livres a pound...... 72,000,000

The difference is..................................23,700,000

The price being thus reduced one third, would be brought within the reach of a new and numerous circle of the people, who cannot, at present, afford themselves this luxury. The consumption, then, would probably increase, and perhaps in the same if not a greater proportion, with the reduction of the price; that is to say, from twenty-four to thirty-sis millions of pounds: and the King, continuing to receive twenty-five sous on the pound, as at present, would receive forty-fire instead of thirty millions of livres, while his subjects would pay but two livres for an object which has heretofore cost them three. Or if, in event, the consumption were not to be increased, he would levy only forty-eight millions on his people, where seventy-two millions are now levied, and would leave twenty-four millions in their pockets, either to remain there, or to be levied in some other form, should the state of revenue require it. It will enable his subjects, also, to dispose of between nine and ten millions' worth of their produce and manufactures, instead of sending nearly that sum annually, in coin, to enrich a neighboring nation.

I have heard two objections made to the suppression of this monopoly. 1.

That it might increase the importation of tobacco in contraband. 2. That it would lessen the abilities of the Farmers General to make occasional loans of money to the public treasury. These objections will surely be better answered by those who are better acquainted than I am with the details and circ.u.mstances of the country. With respect to the first, however, I may observe, that contraband does not increase on lessening the temptations to it. It is now encouraged, by those who engage in it being able to sell for sixty sous what cost but fourteen, leaving a gain of forty-six sous. When the price shall be reduced from sixty to forty sous, the gain will be but twenty-six, that is to say, a little more than one half of what it is at present. It does not seem a natural consequence, then, that contraband should be increased by reducing its gain nearly one half. As to the second objection, if we suppose (for elucidation and without presuming to fix) the proportion of the farm on tobacco, at one eighth of the whole ma.s.s farmed, the abilities of the Farmers General to lend will be reduced one eighth, that is, they can hereafter lend only seven millions, where heretofore they have lent eight. It is to be considered, then, whether this eighth (or other proportion, whatever it be) is worth the annual sacrifice of twenty-four millions, or if a much smaller sacrifice to other monied men, will not produce the same loans of money in the ordinary way.

While the advantages of an increase of revenue to the crown, a diminution of impost on the people, and a payment in merchandise instead of money, are conjectured as likely to result to France from a suppression of the monopoly on tobacco, we have also reason to hope some advantages on our part; and this hope alone could justify my entering into the present details. I do not expect this advantage will be by an augmentation of price. The other markets of Europe have too much influence on this article, to admit any sensible augmentation of price to take place. But the advantage I princ.i.p.ally expect, is an increase of consumption. This will give us a vent for so much more, and, of consequence, find employment for so many more cultivators of the earth: and in whatever proportion it increases this production for us, in the same proportion will it procure additional vent for the merchandise of France, and employment for the hands which produce it. I expect too, that by bringing our merchants here, they would procure a number of commodities in exchange, better in kind, and cheaper in price. It is with sincerity I add, that warm feelings are indulged in my breast by the further hope, that it would bind the two nations still closer in friends.h.i.+p, by binding them in interest. In truth, no two countries are better calculated for the exchanges of commerce. France wants rice, tobacco, potash, furs, and s.h.i.+p timber. We want wines, brandies, oils, and manufactures. There is an affection, too, between the two people, which disposes them to favor one another. They do not come together, then, to make the exchange in their own ports, it shows there is some substantial obstruction in the way. We have had the benefit of too many proofs of his Majesty's friendly disposition towards the United States, and know too well his affectionate care of his own subjects, to doubt his willingness to remove these obstructions, if they can be unequivocally pointed out. It is for his wisdom to decide, whether the monopoly, which is the subject of this letter, be deservedly cla.s.sed with the princ.i.p.al of these. It is a great comfort to me too, that in presenting this to the mind of his Majesty, your Excellency will correct my ideas where an insufficient knowledge of facts may have led me into error; and that while the interests of the King and of his people are the first object of your attention, an additional one will be presented by those dispositions towards us, which have heretofore so often befriended our nation.

I avail myself of this occasion to repeat the a.s.surance of that high respect and esteem, with which I have the honor to be

your Excellency's most obedient

and most humble servant,

Th: Jefferson.

LETTER XCIII.--TO CAPTAIN JOHN PAUL JONES, August 17, 1785

TO CAPTAIN JOHN PAUL JONES.

Sir,

Paris, August 17, 1785.

Mine of the 13th informed you that I had written to the M. de Castries on the subject of Puchilberg's interference. Yesterday I received his answer dated the 12th. In that, he says that he is informed by the _Ordonnateur_, that he has not been able to get an authentic roll of the crew of the Alliance, and that, in the probable case of there having been some French subjects among them, it will be just that you should give security to repay their portions. I wrote to him this morning, that as you have obliged yourself to transmit the money to the treasury of the United States, it does not seem just to require you to be answerable for money which will be no longer within your power; that the repayment of such portions will be inc.u.mbent on Congress; that I will immediately solicit their orders to have all such claims paid by their banker here: and that should any be presented before I receive their orders, I will undertake to direct the banker of the United States to pay them, that there may be no delay. I trust that this will remove the difficulty, and that it is the last which will be offered. The ultimate answer shall be communicated the moment I receive it. Having pledged myself for the claims which may be offered, before I receive the orders of Congress, it is necessary to arm myself with the proper checks. Can you give me a roll of the crew, pointing out the French subjects? If not, can you recollect personally the French subjects, and name them to me, and the sums they are ent.i.tled to? it there were none such, yet the roll will be material, because I have no doubt that Puchilberg will excite claims upon me, either true or false,

I am, with much respect, Sir,

your most obedient, humble servant,

Th: Jefferson.

LETTER XCIV.--TO WILLIAM CARMICHAEL, August 18, 1785

TO WILLIAM CARMICHAEL.

Pads, August 18, 1785.

Dear Sir,

My last to you was of June the 22nd, with a postscript of July the 14th.

Yours of June the 27th came to hand the 23rd of July, and that of July the 28th came to hand the 10th instant. The papers enclosed in the last shall be communicated to Mr. Adams. I see with extreme satisfaction and grat.i.tude, the friendly interposition of the court of Spain with the Emperor of Morocco, on the subject of the brig Betsy, and I am persuaded it will produce the happiest effects in America. Those who are entrusted with the public affairs there, are sufficiently sensible how essentially it is for our interest to cultivate peace with Spain, and they will be pleased to see a corresponding disposition in that court. The late good office of emanc.i.p.ating a number of our countrymen from slavery is peculiarly calculated to produce a sensation among our people, and to dispose them to relish and adopt the pacific and friendly views of their leaders towards Spain. We hear nothing yet of Mr. Lambe. I have therefore lately proposed to Mr. Adams, that if he does not come in the French or English packet of this month, we will wait no longer. If he accedes to the proposition, you will be sure of hearing of, and perhaps of seeing, some agent proceeding on that business. The immense sum said to have been proposed, on the part of Spain, to Algiers, leaves us little hope of satisfying their avarice. It may happen then, that the interests of Spain and America may call for a concert of proceedings against that State. The dispositions of the Emperor of Morocco give us better hopes there. May not the affairs of the Musquito coast, and our western ports, produce another instance of a common interest? Indeed, I meet this correspondence of interest in so many quarters, that I look with anxiety to the issue of Mr. Gardoqui's mission; hoping it will be a removal of the only difficulty at present subsisting between the two nations, or which is likely to arise.