Special Providence_ American Foreign Policy and How It Changed World - Walter Russell Mead

110 SPECIALPROYIDENCE

marketsinreturn.AlthoughHamiltoniantradepolicyhaschangedits
methodsoverthecenturies,thecentralidea-thatnationalprosperity
throughanappropriatetraderegimeistheresponsibilityofthefederal
government-hasneverchanged.Hamiltonianshaveneverbelievedin
usingtariffssimplyasa revenuetax,raisingorloweringtariffsinline
withthefiscal needsofthegovernment.ForHamiltonianstariffsand
tradepolicyhavealwaysbeena politicallevy,usedtoshapenationaleco-
nomicdevelopment.
Anotherinterest,whichplayeda sporadicbutsometimesvitalrolein
theHamiltonianviewofthenationalinterest,wasa variationoftheopen
door.Periodicallyinmodernhistorytherehavebeenstrategicallyneces-
sarymaterialsonlyavailablefroma handfulofcountries.Whatoil is
today,rubberwasyesterday.Other,rarermaterialsareneededformili-
tarymanufacturing;sincethenineteenthcenturytheUnitedStateshas
conducteditsforeignpolicywithoneeyeonthenecessityofmaintaining
itsaccesstosuppliesofthesematerials.Anycountryorgroupofc,?un-
triesthatfounditselfwitha monopolyinsomekeymaterialandthat
thenattemptedtousethismonopolyagainsttheUnitedStateswould
soonfinditselftheobjectofvigorouscountermeasures.Thevitalroleof
oilandenergypolicyinshapingAmericanforeignpolicyandmilitary
strategytodaypointstothecontinuingimportanceoftheseconsidera-
tionsinourpolicy.
Freedomoftheseasleadstotheopendoorforgoods,whichinturn
leadstosatisfactionofanotherAmericaninterest,equallyvitalfroma
Hamiltonianpointofview:theneedfora freeflowofmoneybetweenthe
world'sprincipaltradingnations.Unlessdollars,pounds,andfrancscan
befreelyexchangedforoneanotherinsomepredictableway,andunless
tradersandinvestorscanfreelymovemoneyfromonecountrytoanother,
theadvantagesoftradewouldbelargelylost.
Theimplicationsofthisforbothforeignanddomesticpolicy are
incalculablylarge.Keepingtheworld'smoneymarketsintegratedinvolves
acceptingimportantrestraintsondomesticpolicy.Governmentsmust,
forexample,engageinsoundfiscalandmonetarypoliciesiftheircurren-
ciesaretobeusefulmediumsforinternationaltransactions.Countries
cannotborrowexcessively,normusttheydepreciatethevalueoftheir
money byprintingtoomuchofit.Theseconsiderationsdonotmerely
requirefiscal restraintonthepartofgovernments; theydemandthe
establishmentofinstitutionsthatcanfunctionascentralbanksandas
honestarbitersincontroversiesbetweencitizensandnoncitizens.There