In this paper, Alexander Hamilton continues the defense of union over disunion by outlining the benefits of the former for American commerce and naval power. He argues that in order for Americans to maintain an active commerce, by which he means the ability to control and shape the terms of its trade with foreign powers, America requires a union. He argues that only a union will be strong enough to secure favorable terms of trade with European powers.

He contends further that a united America will be able to pool its diverse resources in building a powerful navy. This navy would then help deter European powers from threatening American commercial interests and stealing American resources. It would furthermore give America significant influence in shaping the international politics of the West Indies where the European powers have significant commercial interests. Hamilton warns that were America to find itself in a state of disunion, the individual states would be too weak to resist the predatory behavior of European powers who would be able to impose unfair terms of trade on the Americans. America would ultimately be reduced to what Hamilton calls a “passive commerce,” which would enrich foreign powers at the expense of American merchants.