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.