History of the Great American Fortunes, Vol. I: Conditions in Settlement and Colonial TimesMyers, Gustavus
History
History of the Great American Fortunes, Vol. I: Conditions in Settlement and Colonial Times
Myers, Gustavus
United States -- Economic conditions; Wealth -- United States
It is illustrative, in the highest degree, of the character of
Government ruled by commercial interests, that Astor was allowed to
pillage and plunder, cheat, rob and (by proxy) slaughter in the West,
while, in the East, that same Government extended to him, as well as to
other shippers, the free use of money which came from the taxation of
the whole people--a taxation always weighted upon the shoulders of the
worker. In turn, this favored class, either consciously or
unconsciously, voluntarily or involuntarily, cheated the Government of
nearly half of the sums advanced. From the foundation of the Government
up to 1837, there were nine distinct commercial crises which brought
about terrible hardships to the wage workers. Did the Government step in
and assist them? At no time. But during all those years the Government
was busy in letting the shippers dig into the public funds and in being
extremely generous to them when they failed to pay up. From 1789 to 1823
the Government lost more than $250,000,000 in duties,[90] all of which
sum represented what the shippers owed and did not, or could not, pay.
And no criminal proceedings were brought against any of these
defaulters.
This, however, was not all that the Government did for the favored,
pampered class that it represented. Laws were severe against labor-union
strikes, which were frequently judicially adjudged conspiracies.
Theoretically, law inhibited monopoly, but monopolies existed, because
law ceases to be effective law when it is not enforced; and the
propertied interests took care that it was not enforced. Their own class
was powerful in every branch of Government. Furthermore, they had the
money to buy political subserviency and legal dexterity. The $35,000
that Astor paid to Cass, the very official who, as Secretary of War, had
jurisdiction over the Indian tribes and over the Indian trade, and the
sums that Astor paid to Benton, were, it may well be supposed, only the
merest parts of the total sums that he disbursed to officials and
politicians, high and low.
ASTOR'S MONOPOLIES.
Astor profited richly from his monopolies. His monopoly of furs in the
West was made a basis for the creation of other monopolies. China was a
voracious and highly profitable market for furs. In exchange for the
cargoes of these that he sent there, his ships would be loaded with teas
and silks. These products he sold at exorbitant prices in New York. His
profits from a single voyage sometimes reached $70,000; the average
profits from a single voyage were $30,000. During the War of 1812-15 tea
rose to double its usual price. Astor was invariably lucky in that his
ships escaped capture. At one period he was about the only merchant who
had a cargo of tea in the market. He exacted, and was allowed to exact,
his own price.
Public-domain text, read in full here on John Shaqi.
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