wn' ■l;- mmm Ifliii :rt;f^ A*:Vl^.i>n;>• 11 wif^''''-;H;" Book_ C ^'^^^< Extract from the American Farmer. " Had we anticipated the masterly and patriotic addresses of the Philadelphia Society for the promotion of National Industry, before the publication of our first number, we should gladly have lemained silent. We should have blushed to speak on subjects to be simulta- neously discussed in a manner far transcending our ability. And now, could we know that all the readers of the American Farmer would peruse the numbers of those excellent addresses, no more of our comparatively trifling essays would appear. But our belief to the contrary, and the expectation which may have been justly excited, must be our apology for continuing our numbers. We are happy to find in what we have seen of that grand production, some notions which we had conceived, fully confirmed ; and we hope not a little praise may be rendered to its author, if some of the bright rays which have been shed on ourselves, should be occasionally, but faintly, re- flected upon our readers." Extract of a letter from John Adams, Esq. ex-presldent, to the Edi- tors of the Manufacturers and Farmer^s Journal. " The gentlemen of Philadelphia have published a very important volume upon the subject, which I recommend to your careful peru- sal." Extract of an Address from Benjamin Austin, Esq. '• This subject has produced researches, which demonstrate the abundant resources of our country, and the practicability of accom- plishing those important objects, (the establishment of national ma- nufactures) with the aid of government. Among the foremost, the Philadelphia Society for the promotion of National Industry, is en- titled to our thanks for their perseverance in this national and laud- able pursuit." Extract of a letter from General Harrison to one of the members of the Philadelphia Society for the promotion of American vManu- factures. " I should be wanting in candour not to acknowledge, that I have been converted to my present principles in favour of manufactures, by the luminous views upon the subject which have been published by your society." Yours. &c. W. H. HARRISON. r A 1 ( ii ) Extract of a letter from the Hon. Oliver Wolcott, Esq. Governor of the State of Connecticut, dated Litchfield, June 13, 1821, to the author. " I have received your pamphlet addressed to the farmers and planters of the United States. My opinions on the interesting sub- jects, which you have undertaken to discuss, are coincident with yours — and I do all in my power to recommend them to the public. I be- lieve that the people in this part of the country, have settled down in a firm conviction, that we must protect our internal industry. Your writings have done much to produce this conviction — and I consider you as a distinguished benefactor of our country." Extract of a letter from the Hon. James Madison, ex-president of the United States, dated Montpelier, May 26, 1821, to the same. ** I have received your pamphlet, [The Address to the Farmers and Planters of the United States,] of which I cannot say less, than that it exhibits the same extent of statistic research — the same con- densation of ideas — and the same tone of disinterested patriotism, which have been remarked in other publications from the same pen." Extract of a letter from Governor Clinton to Joseph Coppinger. " Mr. Carey's indefatigable and enlightened efforts in favour of this great department of human industry, [domestic manufactures,3 entitle him to the thanks and encouragement of every friend of America." National progress to prosperity or to decay. Dedicated to the Legislature and Executive of the United States. <' CHOOSE YE." NATIONAL INDUSTRY " In all its shapes andforms^'' PROTECTED.* 1. Prohibitions of what can be advantageously made at home. 2. Protecting duties. 3. Moderate importations. • 4. Industry fostered and pros- perous. 5. Every person able and will- ing to work employed. 6. Early and numerous mar- riages. I. Population rapidly increas- ing. 8. Poor rates diminishing. 9. Bankruptcies rare. 10. Great accession of immi- grants and capital. II. Numerous houses build- ing. 12. Credit preserved at home and abroad. 13. Revenue increasing. 14. Capital, talent, and indus- try, sure of success. 15. Debts easily collected. 16. Property rising in value. 17. General prosperity. 18. New towns springing up. 19. Cordial attachment to go- vernment. UNPROTECTED.! 1. Heavy duties on teas, wines, coffee, spu-its, salt, pepper, &c. 2. Light duties on manufac- tures. 3. Immense importations. 4. Great bargains of cheap fo- reign goods. 5. Drain of specie. 6. Remittances of government and bank stock. 7. Decay of national industry. 8. Workmen discharged. 9. Poor rates augmented. 10. Increase of idleness, pau- perism, and gmlt. 11. Soup houses. 12. Manufactm-ing estabhsh- ments in ruins. 13. Manufactm-ers bankrupt. 14. Merchants and traders fol- lowing in their train. 15. Marriages rare. 16. Population slug^sh. 17. Immigration discounten- anced. 18. Emigrations in quest of an asylum abroad. 19. Capital, talents and indus- try, wanting employment. 20. Staples sinking in price. 21. Distress and ruin of agricul- turists. 22. Credit impaired at home and abroad. 23. Banks stopping payment. 24. Sheriffs' sales. 25. Houses falling to decay. 26. General emban-assment. 27. Monied men engrossing the estates of the distressed. 28. Failure of revenue. 29. Legal suspension of the collection of debts. 30. A.pplications for relief wholly disregarded, or unfeel- ingly rejected. 31. Alienation from a govern- ment regardless of the suffer- ings of its citizens. ■ With some veiy shght variations, this sketch apphes to the state of France, since the downfall of Bonaparte. It is a fair picture ot every country m which industry is protected. „ , _i.- „x- 4.v,~ tThis is a striking likeness of the situation of a very large portion ot the United States in the calamitous and never-to-be-forgotten years Iblb, 1«17, i»ie and 1819 ; and partly of Holland, since the year 1816. r * I O J Pi < •?i. J <^ < o r u> « o- &0 w ^ ^ flj ^1 p^ 1 Ph r\ p^ ^ o t. ^ 5> X Q ■< lii r* p % IJj < =:s P ^ <1 O rH 00 C^ ^ O^ «3 C^ >H (£) ^ t^ oTcN cn' 00 o . tJ * « 2 1 s j:;co 5 /2 c ■*-' c .o ^ >^ ^ 1-1 CN r^ -*< ^ O CO U3 i-i (M b- ^ iH O ^ 3 .S o . S^-SSS= „«.2f5^ be^ J 5 S u -S > rt O . « . XI ^ i ^ o o ;-; ^• ■e, o ? *" 00 re = <^ :o 00 +; o :0 00 H i^T .S to V 'TS 00 ^ (U -c^ g O g g ?; (u g o y > =* *^ oj i!^ «J iJ — ^ £ g g 01 _ ji 5 o S E ;3 £ i" S 2 "sii 13 5PS o S 6 PQ P-i M I !> G « OS ' 0) « ^ 'ra S •« C rt rj C tn 5 X) 05 ^ 6 o o «a Is fi s^ "5 u So 05 Iff .■a d en S o u g ^ 5 o -5 .y s S 1« .ti ,rt 3 1) p =5 cBOKHPiHK^WOPkHHmPkK ESSAYS ON OR, THE MOST CERTAIN MEANS OF PROMOTING THE WEALTH, POWER, RESOURCES, AND HAPPINESS OF NATIONS : Applied particularly to the United States.. - - , ^ BY M. CAREY, MEMBER OF THE AMERICAN PHILOSOPHICAL SOCIETY, AND OF THE •iJ(i:^Bj((;A,l^,.AK'0 '^ TIftUARIAN SOCIETT AUTHOR OF THE POLITICAL OLITE ' ''^ ' •» BRANCH, VINniCI33 HIBERNICJ5, &C. "I have neglected nothing to procure correct information. I do not, how- ever, pretend to publish a perfect work. All that I can pledge myself for, is, that it emanates from honest intentions." — Clmptal, sur L'industrie Frangoise. " To be independent for the comforts of life, we must fabricate them our- selves. We must now place the manufacturer by the side of the agriculturist." Jeffei^son. " j\fan7ifactures are no-w as necessary to our indepenilence as to our comfort."'— Idem. " While the necessities of nations exclusively devoted to agriculture for the, fabrics of manufacturing states, are constant and regular; the wants of the latter, for the products of the former, are liable to very considerable fluctuations and inter- ruptions." — A. Hamilton. " Not only the -wealth but the independence and security of a country, appear to be materially connected -with the prosperity of manufactures. Every nation, with a view to tl\ese great objects, ought to endeavour to possess within itself all the essentials of national supply. These comprise the means of subsistence, habi- tation, clothing, and defence." — Idem. " If Europe will not take from us the products of our soil, on terms consistent with our interest, the natural remedy is to contract as fast as possible our luants of her." — Idem. PHILADELPHIA: H. C. CAREY & I. LEA— CHESNUT STREET. 1832. ^^COU£CTlO«| //S^c^c^ c^u<^^ 7 subscribi;rs' names. A. Andrew Anderson, Philadelphia. Thomas Amies, Lower Merion. Armsby, Tucker, & Co. Boston. Nathaniel Alley. B. Lydia R. Bailey, Philadelphia. Richard Barnard, jun. Wilming- ton. William Brobson. Abner Bourne, Brunswick. J. B. Brown, Boston. Brigham & Delano. Benjamin Bussey. William Barry. James Bradley. Joseph P. Brad lee. Samuel Billings & Co. William Barret. Amos Binney. Kirk Boot. Silas Bullard. Benjamin Butler, New York. J. Smith Boice, Dorchester. J. Cushing, jun. Salem. Joshua Clapp, Boston. Joel Carter. R. Crowninshield, Danvers. Coppinger, Havanna. De Witt Clinton, Albany. D. T. W. Dyott, Philadelphia. E. I. Dupont, Wilmington. Victor Dupont. Samuel Davis & Co. Boston. Alfred Dutch & Co. Benjamin Dearborn. Nathaniel G. B. Dexter, Paw- tucket. E. George P. Ellis, Walpole. F. Henry Fiske & Co. Boston. William Few, New York. French & Burbank, Pawtucket. G. John Greiner, Philadelphia. Levi Garrett. Richard Graves, Boston. Robert Graves. Orra Goodell, Mil bury. H. Gavin Hamilton, Philadelphia. Thomas Hopkins & Co. Benjamin Hawks, Salem. William Hovey, Boston. Jonathan Hunnewell. D. Hale. Hoi brook & Dexter. Hall J. How & Co. S. P. Haywood. Josiah J. Hastings. Daniel Hastings, Henshaw & Farnham. Samuel Harris. Eliphalet Hale. Holmes & Rogers. Thomas Hand, Chelmsford. Edward Howard, Oxford. Isaac Jones & Son, Philadelphia. P. T. Jackson, Boston. Jabel Ingraham, Pawtucket. K. C. Keen, Philadelphia. Caleb Kirk, Wilmington. Sewall Kenny, Weathersfield. [B.] SUBSCRIBERS' NAMES. L. J. G. Langstroth, Philadelphia. Thomas Leiper. William Laird. T. J. Lobdell, Boston. H. & J. Lovering. Thomas Lord. William Lawrence. Jonathan Lock, Swansey. Ezekiel Lord, New York. M. M*Carty & Davis, Philadelphia, 25 copies. Samuel Mansfield, Salem. Townsend M'Coun, New York. Wm. F. Mott. Samuel Mott. Barney Mirney, North Provi- dence. N. J. P. Norris, Philadelphia. William Nassau. J. & J. Newhall, Salem. Francis H. Nicoli, New York. O. Otis & Holbrook, Boston. John Osborne. John Oliff, New York. P. Richard Povall, Philadelphia. Charles Parker, Salem. George Prichard & Co. Boston. William Phillips, Dedham, Isaac Pierson, New York. Jeremiah H. Pierson. R. James Ronaldson, Philadelphia, 6 copies. Mark Richards. James Rundlett, Portsmouth. Robert Rogerson & Co. Boston. Henry Robinson, New York. S. Abraham Small, Philadelphia, 10 copies. Joseph R. A. Skerrett, 2 copies. John Siddall, Brandywine. Henry Southard, New Jersey. George H. Smith, Salem. Richard Stickney. Jonathan Stitson, Marshfield. Horace vSeaver, Portland. Peter H. Schenck, New York. Peter A. Schenck, Fishkill. A. H. Schenck. J. W. Stephens, Poughkeepsie. Richard Savery, Salem, J. Shepard & Co. Boston. John Spring. N. Somes & Co. Skinner & Dunn. T. John Torbert, Wilmington. William Tileston, Boston. Dexter Tiffany & Co. Rev. Wm. Taylor. V. Joseph Underwood, Pawtucket. James Vila & Co. Boston. W. James Way, Philadelphia. Robert Wilson. Wells & Lilly, Boston, 12 copies. N. G. Williamson, Wilmington, 2 copies. George Whitelock. Pierce L. Wiggins, Salem. Isaac Wendell, Dover, 2 copies. James Wolcott, jun. Boston. WUliams & Wendell. Francis J. Williams. Thomas J. Whittemore. Wing & Sumner. Whitwell, Bond & Co. Jonathan Winship, Brighton. Enoch Wiswall, Watertown. Oliver M. Whipple, Chelmsford. T. B. Wakeman, New York. Jacob T. Walden. Wm. W. Watkinson. White & Bliss, 54 copies. J. Wolcott, Southbridge. Y. William Young, Philadelphia, 10 copies. PREFACE. THIS collection of Essays is liable to one very strong objection, which I state in the foreground, as a sort of caveat emptor^ that the purchaser may be early aware of what he has to expect, and form his determination accordingly. Many of the facts and arguments are repeated twice and thrice, and some few even four times. This circumstance, which arises out of the nature of the case, can be easily ac- counted for. The arguments opposed to the doctrines herein advocated, are few in number ; but have been, for above thirty years, unceasingly repeated by almost every writer who has discussed the subject, and often in the same words. It is evident, that an objection once fully answered, if twenty or fifty times repeated, must be twenty or fifty times refuted by nearly the same arguments. The reasonings against, and the dissuasives from, vice and guilt, as well as the arguments in favour of virtue, used by the earliest moralists, have been re- peated from age to age ever since, with mere variations of style and manner, by their successors in the same useful and honour- able career. The principal objections alleged in 1789 against interpos- ing the powerful segis of governmental protection in favour of that important portion of the national industry devoted to convert the rude produce of the earth into such shapes and forms as are demanded by the necessities, the comfort, or the luxury of mankind, were — that we had not capital to spare for manufactures on an extensive scale — that it would divert capi- tal from more to less useful objects — that our labour was too dear to allow us to compete with European or Asiatic indus- try — that while we had so much vacant lands, it was our duty to direct our industry to the cultivation of the soil — that manufacturing establishments tended to demoralize those oc- cupied in them — that agriculture was the most useful and most innocent employment of mankind — that protecting or pro- hibitory duties would destroy commerce, afford a monopoly to one class of our own citizens, and thus tax the many for the benefit of the few, &c. To these objections was added, after the late war, the danger of a repetition of the extortion, confi- dently asserted to have been perpetrated by the manufac- turers during its continuance. Now, every one of these objections, except the last, which of course did not exist in his time, was discussed and tri- umphantly refuted by Alexander Hamilton in 1791. They VIU PREFACE. have been, nevertheless, throughout the whole period that has since intervened, as flippantly advanced, and as pertina- ciously insisted on, not only as if they had never been re- futed, but as if they were so thoroughly and completely esta- blished as to bid defiance to argument. What can be done in such a case, but repeat the refutation as often as the ob- jection is repeated ? The various essays contained in this work were written at different periods, during the last three years, to meet and refute some of the great number of essays and memorials against the protection of manufactures, in which the old ar- guments were repeated — and of course it was indispensable to pursue the course above traced out. And as truth travels slowly, it is probable, that whoever takes up the subject ten or twenty years hence, may have to adduce many of the same arguments as I have done. I will exemplify this reasoning by the case of the accusa- tion of extortion, of which such use was made in 1816, to defeat the hopes of the manufacturers, and consign so many of them to destruction. This accusation has been times with- out number in newspaper essays, paragraphs, petitions and memorials, and was advanced in conversation almost hourly in 1816 in every company. The proper answer to it is, that the cotton planter who raised the price of his cotton from thirteen cents per pound to twenty-seven, between 1814 and 1816 — the tobacco planter, who in 1816 raised the price of tobacco from g96 to ^185 — the farmer who raised that of wheat from one dollar per bushel to three dollars during the wars of the French revolution — and the merchants, who availed them- selves of every opportunity of scarcity, to lay enormous ad- vances on their goods, often ten, twenty, and thirty per cent, in a month — could not, without the most manifest disre- gard of justice and propriety, charge their fellow-citizens with extortion, for an increase of prices, which arose chiefly out of the increase of the price of raw materials, labour, and sites for establishments. This answer was repeatedly and fully made in 1816, and ought to foreclose the objection for ever. But it is still adduced with undiminished confidence, and by men, against whom the accusation would lie with infi- nitely more propriety. So little attention is paid to the scrip- tural admonition : " First take the beam out of thine own eye, " and then thou shalt see clearly to cast out the mote out of *' thy brother'^s eye.'''' It may be said, that in the republication, the repetitions might have been avoided, and the matter condensed. This arrangement I contemplated, and had determined on — but on trial, I found it would so totally derange the different essays. PREFACE. IX that the whole work would require to be moulded anew, which would consume nearly as much time as the original composi- tion. I could not reconcile myself to encounter this labour — and was therefore under the necessity of either abandoning the whole, or republishing in the present form. To the former alternative I had strong objections. Many of the facts, (of these, I presume, I may speak freely,) col- lected with considerable research, are immensely important, and shed great light on the subject. They deserve to be put into permanent form, for the use of those who may here- after devote themselves to this most important study — other- wise many of them, derived from scarce works, not easily procured, might be sought for in vain, or require trouble in the research, which few persons would be willing to under- take. But let it be observed, that the whole amount of the re- peated matter would not probably extend to fifty pages — and the volume contains about that quantity beyond the size I pro- posed to give. To conclude this point, I wish it distinctly understood, that this volume is presented to the public merely as a collection of pamphlets, written at different times on one subject, and of course containing many repetitions — and not by any means as one continued work, in which the topics are discussed in re- gular order, and then dismissed. Should the latter estimate be formed of it, it would be found greatly deficient. It is to be regarded merely as a work of occasional reference, in which I hope it will be found useful. Throughout these essays, there are various assumptions made, two of which I have already discovered to be errone- ous — and others may probably be in the same situation. I therefore wish the reader to subject them universally to a se- vere scrutiny — and to admit none until they have undergone that ordeal. The proper data, on which to predicate assump- tions in political economy, are difficult of attainment, even in countries where much greater facilities are afforded than are accessible by writers here. This circumstance pleads powerfully in extenuation of errors. The recent census proves, that in pages 331 and 479 I have greatly erred in fixing the proportions of the different classes of society — having rated the agricultural class too low, and the other classes too high. I have, moreover, elsewhere, in , two instances, estimated very differently the consumption of food and drink by each member of society. I regret this discrepancy, and other errors, " quos incuria fudW'' — and throw myself on the indulgence of a public, .a sincere desire to promote whose welfare and happiness has given birth to X PREFACE. this work, which is published with a full conviction of its manifold imperfections. Let me be permitted to add, in the words of the great Chaptal — ^" I have neglected nothing to *' procure correct information. I do not, however, pretend *' to publish a perfect work. All that I can pledge myself " for, is, that it emanates from honest intentions."* Such is the language of the Minister of the Interior of France, respect- ing his admirable work on " French Industry." If, with the immense advantages he possessed through his official station, and his unlimited command of the national statistics — he found it necessary to propitiate public opinion for the indul- gence of his errors — how incomparably more necessary is such propitiation for this work, labouring as I have done, under almost every kind of disadvantage to which a writer is liable. f Let me observe, as an additional reason for critical indulgence, that before I began to write the Addresses of the Philadelphia Society for the Promotion of National Industry in 1819, I had never devoted three days to the study of po- litical economy. As some of the articles contained in this volume, viz. the Addresses of the Philadelphia Society for the promotion of National Industry — the Memorial to Congress — the Report of a Committee of the Citizens of Philadelphia — ^^and the Circular Letter of the same committee, were issued in the names of public bodies, it may be proper to state how far the authorship has been correctly appropriated. They were all written by the same hand as the rest of the contents of the volume — put into type — carefully corrected — and then read to the bodies respectively, in whose name they were pub- lished. Emendations were occasionally suggested by the members, and were generally adopted by the writer. No. 12 and 13 of the first-mentioned set of papers, were written by Dr. Samuel Jackson. * " Je ci'ois n'avoir rien neglige pour obtenir cles renseignemens exacts; " cependant je ne pretends pas publier un ouvrage parfait. Tout ce dont je "puis repondre, c'est qtie c'est iin oicvrage de bonne foi." f The pains I have taken to procure correct information are scarcely credi- ble — as are the difficulties I have experienced, where none were to have been expected. Numbers of persons, deeply interested in the result of these dis- cussions, iiave not condescended to reply to civil letters requesting informa- tion fully within their power. It is an extraordinary fact, that there were 4750 copies of the circular let- ter, page 229, distributed throughout the United States, one to every post-of- fice, of which the number was about 3600 — the i-emainder in different direc- tions — and that not more than ten or a dozen answers were received. Philadelphia^ April &^ 1^22. m THE PHILADELPHIA SOCIETY FOR THE PROMOTION NATIONAL INDUSTRY. " A trade is disadvantageous to a nation which brings in things of mere luxury or pleasure, which are entirely or for the most part consumed among us. " Much worse is that trade which brings in a commodity that is not only con- sumed among us, but hinders the consumption of the like quantity of ours. " That trade is eminently bad, which supplies the same articles as -we manufac- inre ourselves, especially if we can make enough for our consumption." — British Merchant, vol. i. p. 4. " Foreign luxuries, and needless manufactures, imported and used in a na- tion, increase the people of the nation that furnislies them, aiid diminish the people of the nation that uses them. " Laws, therefore, that prevent such importations, and, on the contrary, pro- mote the exportation of manufactures, to be consumed in foreign countries, may be called, (with respect to the people that make them,) generative laws .■ as, by increasing subsisteiice, they encourage mai~riage. " Such laws, likewise, streiigthen a nation doubly, by increasing its own peo- ple, and diminishing its neighbours." — Franklin's Works, vol. iv. pp. 188, 189. SIXTH EDITION. PHILADELPHIA. 1822. ERRATA. The reader is requested to correct with his pen the following and some minor errors which have escaped attention. Page 9, line 22, dele Holland. 26, line 19, for conferences read consequences. 225, line 36, dele and the JVetherlands. 294, line 25, for fojir read three. 470, line 29, for 130,107, read 80,107. 471, line 4, for fifty-seven read sixty. 540, line 3, for onii/ read duty. PREFACE TO THE ADDRESSES. IN presenting our fellow citizens with these addresses, collect- ed together, we cannot refrain from expressing our high sense of the very favourable reception they have experienced. The vari- ous defects of style and arrangement which pervade them, have been overlooked, in consideration of the magnitude of the sub- ject they embrace. We feel persuaded that the cause we advocate yields to none in importance. It is a great error to suppose, as unhappily is too frequently done, that it is the cause of the manufacturers alone. Nothing can be more foreign from the real fact. It is the cause of the nation. It is the mighty question, whether we shall be really or nominally independent — whether we shall per- severe in a policy, which, in four or five years, has done more to prostrate our strength and resources, than a fierce war of equal duration could have done — a policy similar to that which has sunk and degraded Spain for centuries, notwithstanding her im- mense internal and colonial resources — a policy which has never failed, and never can fail, to debilitate and impoverish every country where it has prevailed or may prevail — a policy discard- ed by every wise nation in Europe — a policy in direct hostility with that of England, Russia, Austria, France, Holtend, and Denmark — a policy, in a word, that fosters and promotes the wealth, power, resources, industry, and manufactures ol foreign nations, and represses and paralizes those of our own country. If there be any one truth in political economy more sacred and irrefragable than another, it is, that the prosperity of na- tions bears an exact proportion to the encouragement of their domestic industry — and that their decay and decrepitude com- mence and proceed pari passu with their neglect of it. The wonderful resources of England, so far beyond her intrinsic ad- \ 10 PREFACE TO THE AliDRESSES. vantages, and the prostrate state of Spain and Portugal, not- withstanding the numberless blessings bestowed on them by na- ture, place these great truths on the most impregnable ground. The United States pursue a wayward and short-sighted po- licy, of which the world affords few examples, and which evinces how little we have profited by the experience of other nations — and how much we neglect the maxims of the wise statesmen of Europe, as well as of our own country. •— With a capacity to raise cotton to supply the whole world, our treasures are lavished in Hindostan to purchase cotton of infe- rior quality, which is now manufactured in the United States,* to the injury of our cotton planters. And with skill, talents, water-power, capital, and machinery to supply our utmost de- mand for cambrics and muslins, millions of money are in a si- milar manner lavished in Hindostan and England, to procure those articles ; while tens of thousands of our own citizens, ca- pable of furnishing them, are pining in indigence ; their employ- ers ruined ; and machinery, which cost millions of dollars, rust- ing and rotting ; and while hundreds of manufacturers, invited to our shores by the excellence of our form of government, are unable to earn a subsistence at their usual trades, and are forced to go to Canada or Nova Scotia, or to return to Europe.f About fifty sailed from hence in one vessel, a few days since. Under the influence of such a mistaken system, is it wonder- ful, that distress and embarrassment pervade the nation — that the enlivening sound of the spindle, the loom, and the hammer, has in many places almost ceased to be heard — that our mer- chants and traders are daily swept away by bankruptcy, one af- ter another — that our banks are drained of their specie — that our cities exhibit an unvarying scene of gloom and despair — that confidence between man and man is almost extinct — that debts cannot in general be collected — that property cannot be sold but at enormous sacrifices — that capitalists have thus an opportunity of aggrandizing themselves at the expense of the middle class of society, to an incalculable extent — that money cannot be borrowed, but at an extravagant interest — in a word, that with advantages equal to any that Heaven has ever bestow- ed on any nation, we exhibit a state of things at which our ene- mies must rejoice — and our friends put on sackcloth and ashes ?:j; We trust the day is not far distant, when we shall cast a retrospective eye on this lamentable folly, with as much as- * [At the time this was written, there were large quantities of East India Cottoij. used by the manufacturers of the U. S.] I [It is ]n-obable, that above one thousand emigrants retvimedfrom the U. S. to their native countries in 1819.] t [For a statement of the distress of this period, see the New Olive Branch, Chapter VD.] '^ PREFACE TO T»E ADDRESSES. 11 tonishment, as we now do at the folly and wickedness of our an- cestors in hanging and burning witches. The folly in both cases is about equal. Theirs, however, was limited to a narrow sphere, out of which it was perfectly innocuous. But ours ex- tends its baneful influence to the remotest extremities of the nation. We are gravely told, by writers on whom, unfortunately, great reliance is placed, that our circumstances as a nation being ma- terially different from those of other nations, we require a to- tally different policy — and that, however proper or necessary it maybe for England or France, to encourage manufactures, sound policy dictates a different course for the United States. These maxims are the reverse of truth ; and having had great influence on the operations of our government, have proved highly pernicious. We are, on the contrary, more imperiously called on to encourage manufactures than most other nations, unless we be disposed wantonly to sacrifice the interests of a most important and numerous portion of our population, those farmers and planters who are remote from the seaboard. We request a patient hearing while we offer our reasons. In a compact country, like England, where inland navigation is carried to such a wonderful extent, there are few parts of the kingdom that are not within one or two days' carriage of the seaboard — and consequently their productions can be transport- ed to foreign markets at a moderate expense. Whereas a large portion of our agricultural citizens are from three hundred to a thousand miles distant from any seaport, and therefore almost wholly debarred from all foreign markets, especially at the pre- sent and all probable future prices. Flour has been forwarded to the Philadelphia market from Pittsburg, at a freight of four dollars per barrel. Some of it was probably brought to Pittsburg, from fifty to a hundred and fifty miles, at considerable expense. Deduct the expenses and profits of the Pittsburg merchants, from six or seven dollars, and in what a lamentable situation it places the farmer — how mi- serable a remuneration he has for his labour — and how " dear he pays for the xvhhtle^'' in buying his goods cheap in Hindos- tan, and depending on European markets for the sale of his productions ! The consequences of this system are so pernicious, that it re- quires a little further notice. A farmer in the neighbourhood of Pittsburg, sends his produce to that city, whence it is con- veyed to Philadelphia, three hundred miles by land — or to New Orleans, two thousand by water. It is thence conveyed toui thousand to Liverpool, from whence he receives his china, his delftware, and his pottery. From the amount of his flour as sold in England, all the expenses of transportation are to be de»- 12 PREFACE TO THE ADDRESSES. ducted — and to the price of his china and other articles, the ex- penses of the return voyage are to be added. What a frightful view of the situation of a large portion of the people of the western country does this sketch exhibit ? Is it difficult to ac- count for the prostrate state of affairs in that part of the union^ and under a government, which, emanating more completely from the mass of the people than any other that ever existed, might have been expected to have extended a more paternal care over its citizens than the world ever witnessed ! It is therefore indubitable, that to the reasons for encourag- ing manufactures, existing in England and France, all of which apply here, is to be added a powerful one peculiar to the United States, arising from the distance between so large a portion of our territory and any seaport towns, as well as the immense dis- tance from those towns to the countries from whence we draw our supplies. Let us suppose for a moment, that the western farmer, instead of purchasing his pottery and delftware in England, had, in his own neighbourhood, manufactories of those articles, whence he could procure them free of the enormous expenses of sea and land carriages, amounting in many instances to treble the first cost — and that in return, he supplied the manufacturer, of whom he purchased them, with his wheat and corn and other articles ! —What a different face that country would wear ! — What rapid Strides it would then make in the career of prosperity ! — What additional allurements it would hold out to immigrants ! We offer for reflection, fellow-citizens, an important fact, that sheds the strongest light on this theory. The settlement of Harmony in the western country, was conducted on this plan. This little commonwealth depended wholly on itself for supplies. It had, to use the cogent language of Mr. Jefferson, '■'■ placed the manufacturer beside the agriculturist y What was the conse- quence ? The settlement made more rapid advances in wealth and -prosperity, than any equal body of men in the world at any period of time — more, in one year, than other parts of the United States, which depend on foreign markets for the sale of their produce and the supply of their wants, have done in ten. It is frequently stated, that as some of the cotton manufac- turers in the eastern states have prospered, the protection to the manufacture is abundantly adequate. If this argument war- ranted the inference drawn from it, it would prove that the po- licy of Spain is sound, and fraught with wisdom ; for notwith- standing the decay of that nation, there are in it many prosper- ous manufactures, which, from particular circumstances, are, like some of those in the eastern states, enabled to struggle against foreign competition. — But the decay of so large a por- tion of the manufacturing establishments in the middle and PREFACE TO THE ADDRESSES. 13 eastern states, notwithstanding the enterprise, large capital, and industry of the proprietors, is a full proof that there is not suf- ficient protection to this important branch. Public attention has unfortunately been diverted from the real sources of our prostrate state, by certain trite common places, re-echoed throughout the union, — that it is a time of general suffering — that distress and embarrassment pervade the whole civilized world — that we are no worse than other nations — and that we cannot hope for an exemption from the common lot of mankind. This appears plausible — but will not stand the test of exami- nation. It is not wonderful, that the nations of Europe, exhaust- ed by a twenty years war — pillaged and plundered by hostile ar- mies — with expensive governments and immense armies to sup- port in time of peace — and groaning under the weight of enor- mous debts, and grinding tithes and taxes, should be in a state of suffering. But there is no parallel between their situation and ours. Our short war, far from exhausting our resources, developed them. We retired from it, prosperous and glorious. Our fields are as fertile— our citizens as industrious and inge- nious — our capacity for manufacturing as great as ever — and our taxes are comparatively insignificant. Our distresses cannot therefore be traced to the same source as theirs. They flow wholly from our own mistaken policy, Avhich leads us to pur chase abroad what we could produce at home — and, like thought- less prodigals and spendthrifts, to incur debts beyond our ut- most means of payment. The restoration of peace, however, as might have been natu- rally expected, greatly affected our commerce, particularly the carrying trade, of which the war had given us an inordinate share. An immense capital, invested in commerce, was thus rendered wholly unproductive ; and, had manufactures been encouraged, as sound policy dictated, hundreds of our mer- chants, whose property has since wasted away, and who have been swallowed up in the vortex of bankruptcy, would, as was the case during the war, have transferred their talents, their in- dustry, and their capital to that department, to the advancement of their own interest and the general welfare ; instead of a vain struggle in a branch which was so overstocked, that it could not afford support to more than half the persons engaged in it. — Those that remained in the mercantile profession, after such a transfer of a portion of its members to profitable employment of another description, might and probably would have prospered. And thus it is as clear as the noon-da}'^ sun, that an efficient pro- tection of manufactures would have been highly advantageous to the merchants ; although many of them, from taking a super- 14 ^REt-ACE TO THE ADDRESSES. ficial view of the subject, have been under an opposite impres* sion, and have, unfortunately, been hostile to such protection. The advocates of the system of Adam Smith ought to be sa- tisfied with the fatal experiment we have made of it. It is true, the demands of the treasury have not allowed us to proceed its full length, and to discard import duties altogether. But as our manufactures are paralized, so large a portion of our manufac- turers ruined, and our country almost wholly drained of its me- tallic medium, to pay for foreign merchandize, notwithstanding the duties imposed Jor the purpose of revenuCy it is perfectly reasonable to conclude, that the destruction would have been more rapid and complete, had those duties not existed. This, we hope will be regarded as decisive ; for, if our woolen manu- facture, for instance, protected, as it is termed, by a duty of 27 1-2 per cent., has been more than one half destroyed, so that it was no longer an object to preserve the invaluable breed of Merino sheep, in which millions of dollars were invested, and of which the greater part have been consigned to the shambles, to the great and manifest injury of the proprietors, it cannot be doubted, that, without such duty, it would have been at once wholly annihilated, as our citizens would, in that event, have been utterly unable to maintain a struggle against foreign rivals. If argument were of avail against the dazzling authority of great names, and against ingrained, inveterate prejudice, this case would settle this question forever. Where are now, we asky the " collateral branchefi^'' to which the thousands of our artists, mechanics, and manufacturers, " thrown out of their ordinary employment^ and common method of subsistence^'' can *' easily transfer their industry y^"*^ as Dr. Smith asserts ? Another part of Dr. Smith's theory, is, that when a particular branch of industry is destroyed by " the home market being sud- denly laid open to the competition of foreigners'^ " the stock will still remain in the country^ to employ an equal number of people in some other xvay.^^ And, therefore, '■'• the capital of the country remaining the same^ the demand for labour zvill still be the same^ though it may be exerted in different places^ and Jor different occupations ?''\ These maxims are now fairly tested in the Uni- ted States, as they have been for centuries in Spain. The cot- ton, woollen, pottery, glass, and various other manufactures, have been in a great measure suspended in the middle states, by " the home market being suddenly laid open to the competition of foreigners'''' at the close of the war. Is there a man who will venture to assert, that " the demand for labour is the same?^^ that " the stock remains the sameP^ or that it " employs an equal num- ber of people in some other zuayP'^ We flatter ourselves that the * Wealth of JSTations, Hartford Edition, I. 329—30, f Ibid. PREFACE TO THE ADDRESSES. 15 most decided advocate of the doctor's system will admit, on calm reflection, that these maxims are utterly destitute of even the shadow of foundation. We urge this point on the most sober and serious reflection of our fellow citizens. It is a vital one, on which the destinies of this nation depend. The freedom of commerce, wholly un- restrained by protecting duties and prohibitions, is the keystone of the so-much-extolled svstem of the doctor, which, though dis- carded, as we have stated, in almost every country in Europe, has, among our most enlightened citizens, numbers of ardent, zealous, and enthusiastic admirers. We have made an experi- ment of it as far as our debt and the support of our government would permit. We have discarded prohibitions ; and, on the most important manufactured articles, wholly prohibited in some countries, and burdened with heavy prohibitory duties in others, our duties are comparatively low, so as to afford no ef- fectual protection to the domestic manufacturer. The fatal re- sult is before the world — and, in almost every part of the union, is strikingly perceptible. In addition to the example of Spain and Portugal, it holds out an awful beacon against the adoption of theories, which, however splendid and captivating on paper, are fraught with ruin when carried into practice. There is one point of view, in which, if this subject be con- sidered, the egregious errors of our system will be manifest be- yond contradiction. The policy we have pursued renders us dependent for our prosperity on the miseries and misfortunes of our fellow-creatures ! Wars and famines in Europe are the keystone on which we erect the edifice of our good fortune !— ^ The greater the extent of war, and the more dreadful the fa- mine in that quarter, the more prosperous we become ! Peace and abundant crops there undermine our welfare ! The misery of Europe ensures our prosperity ! its happiness promotes our decay and prostration ! ! What an appalling idea ! Who can reflect without regret on a system built upon such a wretched foundation ! What a contrast between this system and that developed with such ability by Alexander Hamilton, which we advocate ! Light and darkness are not more opposite to each other. His admira- ble system would render our prosperity and happiness dependent wholly on ourselves. We should have no cause to wish for the misery of our fellow men, in order to save us from the distress and embarrassment which at present pervade the nation. Our wants from Europe would, by the adoption of it, be circum- scribed within naiTower limits, and our surplus raw materials be amply adequate to procure the necessary supplies. Submitting these important subjects to an enlightened com- munity, and hoping they will experience a calm and unbiassed 16 PREFACE TO THE ADDRESSES- consideration, we ardently pray for such a result as may tend to promote and perpetuate the honour, the happiness, and the real independence of our common country. To the legislature of the United States, on whose decision depends the perpetuation of existing distress, or the restoration of the country, to that high grade of prosperity from which a false policy has precipitated her, we present the following lumi- nous maxims ; viz. " The wiiform appearance of an abundance of specie^ as the ** concomitant of a flourishing' state of manifactures, and oj the " reverse -where they do not prevail^ ajfford a strong presumption " oJ their favourable operation on the wealth of a country.^ " Considering a monopoly of the domestic market to its own " manufactures^ as the reigning policy of manujacturing nations, " a similar policy^ o?i the part of the Vnited States^ in every pro- ^^ per instance., is dictated^ it might almost be said^ by thepri?ici- " pies of distributive Justice ; certainly^ by the duty of endeavour - " hig to secure their own citizens a reciprocity of advantages,''^] " The United States cannot exchange with Europe on equal " termsy% " That trade is emitiently bad zvhich supplies the same goods " as we manufacture ourselves ; especially ^ if we can make enough ^^ for our own consumptioir.''^^ * Hamilton's Works, vol. 1. p. 217. f Idem, p. 225. * Idem, 186. § British Merchant, vol. I. p. 4. ADDRESSES OF THE PHILADELPHIA SOCIETY, TO THE CITIZENS OF THE U. STATES. NO. T. Philadelphw^ March 27, 1819. Definition of political economy. Its importance, hifluence of great names. Leading feature of Adam Stnith^s theory. Fer- iiicious consequences of its adoption. FRIENDS AND FELLOW CITIZENS, The Philadelphia Society for the Promotion of National In- dustry, respectfully solicit your attention to a few brief essays on topics of vital importance to your countrj^, yourselves, and your posterity. They shall be addressed to your reason and understanding, without any attempt to bias your feelings by de- clamation. Political economy shall be the subject of these essays. In its broad and liberal sense, it may be correctly styled the ' science of promoting human happiness ;' than which a more noble subject cannot occupy the attention of men endowed with enlarged minds, or inspired by public spirit. It is to be regretted that this sublime science has not had ade- quate attention bestowed on it in this country. And unfortu^ nately, so many contradictory systems are in existence, that statesmen and legislators, disposed to discharge their duty con- scientiously, and for that purpose to study the subject, are liable, to be confused and distracted by the unceasing discordance in the views of the writers. It is happily true, nevertheless, that its leading principles, calculated to conduct nations safely to the important and benefi- cent results, which are its ultimate object, are plain and clear j and, to be distinctly comprehended, and faithfully carried into effect, require no higher endowments than good sound sense and rectitude of intentions. It is a melancholy feature in human affairs, that imprudence and error often produce as copious a harvest of wretchedness as absolute wickedness. Hence arises the imperious necessity, rn 18 ADDRESSES. a country where so many of our citizens may aspire to the cha- racter of legislators and statesmen, of a more general study of this science, a thorough knowledge of which is so essential a re- quisite, among the qualifications for those important stations. To remove all doubt on this point, numberless mstances are to be found in history, in which single errors of negotiators and legislators have entailed full as much, and in many cases more misery on nations, than the wild and destructive ambition of conquerors. Unless in some extraordinary instances, a sound policy, on the restoration of peace, heals the wounds inflicted by war, and restores a nation to its pristine state of ease and com- fort. But it has frequently occurred, that an article of a treaty, of ten or a dozen lines, or an impolitic or unjust law, has pro- duced the most ruinous consequences for a century. It is our intention, 1. To review the policy of those nations which have enjoyed a high degree of prosperity, with or without any extraordinary advantages from nature ; and likewise of those whose prosperity has been blasted by fatuitous counsels, notwithstanding great natural blessings : 2. To examine the actual situation of our country, in order to ascertain whether we enjoy the manifold blessings to which our happy form of government and numerous local advantages enti- tle us ; and, if we do not, to investigate the causes to which th? failure is owing : 3. To develop the true principles of political economy, suited to our situation and circumstances, and calculated to produce the greatest sum of happiness throughout the wide expanse of our territory. In this arduous undertaking, we request a patient and candid hearing from our fellow-citizens. We fondly hope for success ; but, if disappointed, we shall have the consolation of having en- deavoured to discharge a duty every good citizen owes to the country which protects him ; the duty of contributing his efforts to advance its interest and happiness. As a preliminary step, we propose to establish the utter falla- cy of some maxims, supported by the authority of the name of Adam Smith, author of The Wealth of Nations, but pregnant with certain ruin to any nation by which they may be carried in- to operation. This course is prescribed to us by the circum- stance, that the influence of these maxims has been most sensibly and perniciously felt in our councils ; has deeply affected our prosperity ; and been the main source whence the prevailing dis- tress of the nation has flowed. This writer stands so pre-eminent in the estimation of a large portion of Christendom, as the Delphic Oracle of political econo- my, and there is such a magic in his name, that it requires great AJDDRESSES. 19 hardihood to encounter him, and a high degree of good fortune to obtain a fair and patient hearing for the discussion. But at this enlightened period, we trust our citizens will scorn to surrender their reason into the guidance of any authority whatever. When a position is presented to the mind, the ques- tion ought to be, not who delivered it, but what is its nature ? and, how is it supported by reason and common sense, and espe- cially by fact ? A theory, how plausible soever, and however propped up by a bead-roll of great names, ought to be regarded with suspicion, if unsupported by fact — and, a fortiori^ if contra- ry to established fact, ought to be unhesitatingly rejected. This course of procedure is strongly recommended by the decisive circumstance, that, in the long catalogue of wild, ridiculous, and absurd theories on morals, religion, politics, or science, which have domineered over mankind, there is hardly one that has not reckoned among its partisans, men of the highest celebrit)^.* And in the present instance, the most cogent and conclusive facts bear testimony against the political economist, how great soever his reputation. We hope, therefore, that our readers will bring to this discus- sion, minds wholly liberated from the fascination ot the name of the writer whose opinions we undertake to combat, and a deter- mination to weigh the evidence in the scales of reason, not those of prejudice. In order to render Dr. Smith full justice, and to remove all ground for cavil, we state his propositions at length, and in his own language : 1. "To give the monopoly of the home market to the pro- '* duce of domestic industry, in any particular art or manufac- *' ture, is in some measure to direct private people in whatman- " ner they ought to employ their capitals ; and must, in almost " all cases, be either a useless or a hurtful regulation. If the do- " mestic produce can be brought there as cheap as that of fo- " reign industry, the regulation is evidently useless. If it cannot, " it must generally be hurtful. 2. " It is the maxim of every prudent master of a family, " never to attempt to make at home what it will cost him more " to make than to buy. The tailor does not attempt to make * Montesquieu, whose reputation was as great as that of Dr. Smith, and whose Spirit of Laws has had as extensive a ciurency as the Wealth of Nations, held tlie absurd idea, wliich remained uncontroveited for half a century, that the ha- bits, manners and customs, and even the virtues and vices of nations, were in a great measui-e governed by cUmate ; whence it would result that a tolerable idea might be formed of those important features of national character, by consulting maps, and ascertaining latitudes and longitudes! Bacon studied judicial astrolo- gy ! All the great men of his day beheved in ma^c and witchcraft ! Johnson had full faith in the storj- of the Cocklane-Ghost ! So much for great names. 20 ADDRESSES. '* his own shoes, but buys them of the shoemaker. The shoe- " maker does not attempt to make his own clothes, but employs " a taylor. The farmer neither attempts to make one nor the " other, but employs those different artifict-rs. All of them find " it for their interest t employ their whole industiy in a way in " which they have some advantage over their neighbours ; and " to purchase, with a part of its produce, or, what is the same " thing, with the price of a part of it, whatever else they have '* occasion for. 3. "That which is prudence in the conduct of every private * " family, can scarcely be folly in tliat of a great kingdom. If " a foreign country can supply us with a commodity cheaper ": than we ourselves can make it, better buy it from them, with " some part of the produce of our country, employed in a way "in VA^hich we have some advantage.' 4. " The general industry of the country being in propor- *' tion to the capital which employs it, will not thereby be dimi- " nished, any more than that of the above-mentioned artificers ; " but only left to find out the way in which it can be employed " with the greatest advantage. It is not so employed, when di- " rectfed to an object which it can buy cheaper than it can make. " The value of its annual produce is certainly more or less di- " minished, when it is thus turned awa)^ from producing com- " modities evidently of more value than the commodity which "it is directed to produce. According to the supposition, that " commodity could be purchased from foreign countries cheaper " than it can be made at home. It could, therefore, have been "purchased with part only of the commodities, or, what is the " same thing, with a part only of the price of the commodities, " which the industry employed by an equal capital would have " produced at home, had it been left to pursue its natural " course."* There is in the subordinate parts of this passage much so- phistry and unsound reasoning, whicii we may examine on a future occasion ; and there is likewise, as in all the rest of the doctor's work, a large proportion of verbiage, which is admi- rably calculated to embarrass and confound common understan- dings, and prevent their forming a correct decision. But, strip- ped of this verbiage, and brought naked and unsophisticated to the eye of reason, the main proposition which we at present combat, and to which we here confine ourselves, is, that, " If a foreign country can supply us with a commodity " cheaper than we ourselves can make it, better buy of them, " with some part of the produce of our own industry, employed ^'in a way in which we have some advantage." ♦Wealth of Nations, Hartfoi-d, 1818, vol. i. p. 319. ADDRESSES. 21 The most rational mode of testing the correctness of any max- im or principle is, to examine what have been its effects where it has been carried into operation, and what they would be in any given case where it might be applied. This is the plan we shall pursue in this investigation. Great Britain affords a felicitous instance for our purpose. Let us examine what effect the adoption of this maxim would produce on her happiness and prosperity. There are above a million of people, of both sexes and of all ages, employed in that country, in the woollen and cotton manu- factures.* By their industry in these branches, they make for themselves and families a comfortable subsistence. They af- ford a large and steady market for the productions of the earth, giving support to, probably, at least two millions of persons en- gaged in agriculture, who furnish the one set of manufacturers with the raw materials, and both with food. They moreover, enrich the nation by bringing into it wealth from nearly all parts of the earth. The immense sums of money they thus introduce into their native country afford means of employment, and en- sure happiness to other millions of subjects — and thus, like the circles made on the surface of the stream by the central pebble thrown in, the range of happiness is extended so wide as to em- brace the whole community. From this cheering prospect, let us turn the startled eye to the masses of misery, which Dr. Smith's system would produce ; and we shall then behold a hideous contrast, which, we trust, escaped the doctor's attention ; for the acknowledged goodness and benevolence of his character, will not allow us to believe that he would have been the apostle of such a pernicious doc- trine, had he attended to its results. We fondly hope, that, like many other visionary men, he was so deeply engaged in the fabrication of a refined theory, that he did not arrest his pro- gress to weigh its awful consequences. The East Indies could at all times, until the recent improve- ments in machinery, have furnished cotton goods at a lower rate than they could be manufactured in England, which had no other means of protecting its domestic industry, but by a prohibition of the rival fabrics. Let us suppose that France, where provisions and labour are much lower than in England, has possessed herself of machinery, and is thus enabled to sell wool- len goods at half, or three-fourths, or seven-eighths of the price of the English rival commodities. Suppose, further, that arti- cles manufactured of leather are procurable in Germany, and • Dr. Seybert states, that in 1809, there were 800,000 persons in Great Britain engaged in the cotton manufacture alone. It has since increased considerably. It is, therefore, probable that the two branches employ at least 1,300,000 per- sons. — Statisticsj p. 92. - 22 ADDRESSES. iron wares in Sweden, below the rates in England. Then, if the statesmen of the last nation were disciples ot Adam bmith, as " foreign countries could supply them with those commodities " cheaper than they themselves can make them," they must, ac- cording to the doctor, " buy from them with some part of the " produce of their own country," and accordingly open their ports freely to those various articles, from these four particular na- tions. Who can contemplate the result without horror ? What a wide spread scene of ruin and desolation would take place ? The wealth of the country would be swept away, to enrich for- eign, and probably hostile nations, which might, at no distant period, make use of the riches and strength thus fatuitously placed in their hands, to enslave the people who had destroyed themselves by following such baneful counsels. The labouring and industrious classes would be at once bereft of employment ; reduced to a degrading state of dependence and mendicity j andj through the force of misery and distress, driven to prey upon each other, and upon the rest of the community. The middle classes of society would partake of the distress of the lower, and the sources of the revenues of the higher orders be dried up.* And all this terrific scene of wo, and wretchedness, and depravi- ty, is to be produced for the grand purpose of procuring broad- cloth, and muslins, and shoes, and iron ware, in distant parts of the earth, a few shillings per yard, or piece, or pound, cheaper than at home ! The manufacturers of Bombay, and Calcutta, and Paris, and Lyons, and Frankfort, and Stockholm, are to be fed, and clothed, and fostered by English wealth, while those of England, whom it ought to nourish and protect, are expelled from their workshops, and driven to seek support from the over- seers of the poor. We trust this will not be thought a fancy sketch ! Such a view of it would be an extravagant error. It is sober, serious reality ; and puts down forever this plausible, but ruinous theory. Ponder well on it, fellow citizens. Let us suppose another strong case. The cotton produced in this country, amounts, probably, to thirty millions of dollars an- nually at present prices — but to forty at least, at the prices of 1815 and 1816. We will suppose the minimum of the price, at which it can be sold, to pay for the labour and interest on the capital employed in its culture, to be twelve cents per pound. We will further suppose, that the southern provinces of Spanish America have established their independence, and are able to supply us with this valuable raw material at the rate of ten cents. Ought we, for the sake of saving a few cents per pound, to de- stroy the prospects, and ruin the estates of nearly 800,000 inha- bitants of the southern states — to paralize a culture so immense- * No small portion of this picture is [1819] rapidly realizing in this countrj'. ADDRESSES. 23 ly advantageous, and producing so large a fund of wealth, and strength and happiness ? Should we, for such a paltry conside- ration, run the risk of consequences which cannot be regarded without awe, and which could not fail eventually to involve in ruin, even those who might appear in the first instance to pro- fit by the adoption of the system ? It may be well worth while to proceed a step further, and take the case of a nation able to supply us fully and completely with wheat and other grain at a lower rate than our farmers can furnish them. Thus then we should find ourselves pursuing Adam Smith's sublime system ; buying cheap bargains of wheat or flour from one nation ; cotton from another ; hardware from a third ; and, to pursue the system throughout, woollen, and cotton, and linen goods from others ; while our country was ra- pidly impoverishing of its wealth, its industry paralized, the la- bouring part of our citizens reduced to beggarj^, and the farm- ers, planters, and manufacturers, involved in one common mass of ruin. The picture demands the most sober, serious atten- tion of the farmers and planters of the United States. It may be asserted, that the supposition of our country being fully supplied with cotton and grain, by foreign nations, is so improbable, as not to be admissible even by way of argument. This is a most egregious error ; our supposition, so far as it re- spects cotton, is in " the full tide of successful experiment." That article, we repeat, to a great amount, is even at present* imported from Bengal, and sold at a price so far below our own, (difference of quality considered^ that our manufacturers find the purchase eligible. Let it be considered, that in 1789, doubts were entertained whether cotton could be cultivated in the United States ;f that in the year 1794, there were exported from this country, of foreign and domestic cotton, only seven thou- sand bags ;:j: and yet, that in 1818, the amount exported was above ninety-two millions of pounds. No man can be so far misled as to suppose that Heaven has given us any exclusive monopoly of the soil and climate calculated for such extraordi- nary and almost incredible advances. The rapid strides we have made, may be also made by other nations. Cotton is said to be shipped at Bombay for three pence sterling per lb. ; and there- fore, setting South America wholly out of the question, it can hardly be doubted, from the spirit with which the culture of that plant is prosecuted in the East Indies, and the certaintj^ that the seeds of our best species have been carried there, that in a few years that country will be able, provided Adam Smith's theory continues to be acted upon here, to expel our planters from their own markets, after having driven them from those of Europe. [•1819.] t Seybert's Statistics, page 84. ± Idem, p. 94. 24 ADDRESSES. It is not, therefore, hazarding much to assert, that the time can- not be very remote, when southern cotton industry will be com- pelled to supplicate congress for that legislative protection, for which the manufacturing industrj^ of the rest of the union has so earnestly implored that body in vain ; and which, had it been adequately afforded, would have saved from ruin numerous manufacturing establishments, and invaluable machinery, which cost millions of dollars — now a dead and irreparable loss to the enterprising proprietors. Had these establishments been pre- served, and duly protected, they would have greatly lessened our ruinously unfavourable balance of trade, and of course pre- vented that pernicious drain of specie, which has overspread the face of our country with distress, and clouded (we trust on- ly temporarily) as fair prospects as ever dawned on any nation.* We have given a slight sketch of the effects the adoption of this system would produce in England and the United States, if carried into complete operation ; and also glanced at the con- sequences its partial operation has already produced here. We now proceed to cast a very cursory glance (reserving details for a future occasion) at its lamentable results in Spain and Portu- gal, where the statesmen are disciples of Adam Smith, and where the theory, which now gots under the sanction of his name, has been in operation for centuries. As " foreign coun- " tries can supply them with commodities cheaper than they them- *' selves can make them," they therefore consider it " better to *' buy from them, with some part of the produce of their own " country." * This view may appear too gloomy. Would to heaven it were ! A cur- sory glance at some of the gi-eat interests of the United States, will settle the question. Cotton, the chief staple of the country, is falling", and not likely to rise :f as the immense quantities from the East Indies have glutted the English mai'ket, which regulates the price in ours. Aftairs in the western country, on which so many of our importers depend, are to the last degree unpromising. — The importers, of course, have the most dreary and sickening prospects before them. They are deeply in debt, their resources almost altogether suspended, and ■ a large propoi-tion ultimately precarious. Our commerce and navigation languish every where, except to the East Indies, the most ruinous branch we caiTy on. Fur- ther, notwithstanding neai'ly eight millions of specie were imported by the Bank of the U. States at a heavy expense, in about one year; so great has been the drain, that the banks are generally so slenderly provided, as to excite serious uneasiness. We are heavil)^ indebted to England, after having remitted im- mense quantities of government and bank stock, whereby we shall be laid under a heavy and perpetual annual tax for interest. Our manufactures are in general drooping, and some of them are one-half or two-thirds suspended. Our. Cities present the distressing view of immense numbers of useful artizans, mechanics, and manufactiu-ers, willing to work, but unable to procure employment. We might proceed with the picture to a great extent; but presume enough has been stated to satisfy the most incredulous, that the positions in the text are by no means exaggerated. ^ [tAt the time tliia was written, the price in Liverpool wp? for Uplands, about 16d. stej-ling— for Sea Islands, 34d. It is now for tlie former, lOd.— for the latter, 18d.] ADDRESSES. 25 These countries are in a forlorn and desperate state, notwith- standing the choicest blessings of nature have been bestow- ed on them with lavish hand ; industry is paralized, and the enormous floods of wealth, drawn from their colonies, answer no other purpose but to foster and encourage the industr\'^, and promote the happiness of rival nations ; and all obviously and undeniably the result of the system of " bvy- ing- goods -where they are to he had cheapest^'' to the neglect and destruction of their domestic industry. With such aw- ful beacons before your eyes, can you contemplate the deso- lating effects of the system in those two countries, without deep regret, that so many of our citizens, and some of them in high and elevated stations, advocate its universal adoption he e, and are so far enamoured of Dr. Smiths theory, that they re';>ard as a species of heresy the idea of appealing to any other authority, on the all-important and vital point of the political economy of nations ! To avoid prolixity, we are obliged to postpone the considera- tion of other positions of Dr. Smith on this subject ; and shall conclude with a statement of those maxims of political economy which we shall endeavour to inculcate, the soundness of which is established by the experience of the wisest as well as of the most fatuitous nations of the earth. 1. Industry is t!ie only sure foundation of national virtue, happiness, and greatness ; and, in all its useful shapes and forms, has an imperious claim on governmental protection. 2. No nation ever prospered to the extent of which it was ca- pable, without due protection of domestic industry. 3. Throughout the world, in all ages, wherever industrj^ has been duly encouraged, mankind have been uniformly indus- trious. 4. Nations, like individuals, are in a career of ruin when their expenditures exceed their income. 5. Whenever nations are in this situation, it is the imperious duty of their rulers to apply such remedies, to correct the evil, as the nature of the case may require. 6. There are few, if any, political evils, to which a wise le- gislature, untrammelled in its deliberations and decisions, can- not apply an adequate remedy. 7. The decay and distress, for a long series of years, of Spain, Portugal, and Italy, prove, beyond controversy, that no natural advantages, how great or abundant soever, will counteract the baleful effects of unsound systems of policy ; and the cotempo- raneous prosperity enjoyed by Switzerland, Holland, and Scot- land, equally prove, that no natural disadvantages are insupe- rable by sound policy. 8. Free government is not prosperity. It is^ only the means, 4 26 ADDRESSES. brt, wisely employed, is the certain means of insuring prosperity', 9. The' interests of agriculture, manufactures, and commerce- are so inseparably connected, that any serious injury suffered by one of them must materially affect the others. 10. The home market for the productions of the earth and manufactures, is of more importance than all the foreign ones, even in countries which carry on an immense foreign commerce. 11. It is impossible for a nation, possessed of immense natu- ral advantages, in endless diversity of soil and climate — in pro- ductions of inestimable value — in the energy and enterprize of its inhabitants — and unshackled by an oppressive debt — to suf- fer any great or general distress, in its agriculture, commerce, or manufactures, (war, famines, pestilence and calamities of sea- sons excepted) unless there be vital and radical errors in its system of political economy. NO. II. Philadelphia^ April 7, 1819. Further review of Adam Smithes maxims. Their pernicious con- ferences admitted by himsef. Proposed remedy in collateral mamfacmre-s and country labour. Futility of the proposition. Ignorance of the nobility^ country gentlemen and merchants^ asserted by Dr. Smith. Position utterly unfounded. Dr. Smith's maxim, discussed in our first number, inevitably involves in its consequences, as we have proved, the destruc- tion of those manufacturing establishments, which produce ar- ticles that can be purchased "• cheaper abroad than they can be made at home ;" and its necessary result is, to deprive those engaged in them of employment. The doctor, after having in- flicted a deadly wound by this maxim, undertakes to provide a sovereign and infallible remedy for the evil, which, to do him and his system justice, we shall exhibit in his own words : — It rem.ains to examine how far the prescription applies a remedy to the e- il. I. " Though a number of people should, by restoring the free- *' dom of trade., be thrown all at once out of their ordinary em- '''■pJoyment.^ and common method oj subsistence., it would by no "means follow, that they would thereby be deprived either of " employment or subsistence."* . ,.. : ;.., ,^^ , , > ^v, II. '•^ To x\iQ. greater part of manufactures, ■there are other libit^ If * Wealth of Nations,!. 329i ADDRESSES. 37 '* collateral manufactures of so familiar a nature, that a work- " man can easily transfer hhi vulu^t* i] from one to the othtr, III. " The greater part of such workmen, too, are occasion- " ally employed in coimtry labour. IV. " The stock, which employed them in a particular manu- " facture before, will still remain in the country, to employ an "equal number of people in some other way. V. " The capital of the country remaininn^ the same^ the de~ " mand for labour rvill still be the same., though it mav be exerted " in different places, and for different occupations.*" Here are five distinct propositions, more clear and plain than Dr. Smith's usually are ; but, as we hope to make appear, all highly erroneous, calculated to lead those statesmen astray, who square their systems by them, and pregnant with ruin to those nations which may be impolitic enough to carry them into ope- ration. The main point is the facility, of " transferring industry''^ from one branch to a " collateral manufacture?'' All the rest are but subsidiary to, or explanatory of this fallacious assump- tion. Two questions arise here, both important, and both demand- ing affirmative answers, in order to support the doctor's hypo- thesis. I. Are there such "■' collateral manufactures^'' as he assumes,- in which men, bereft of employment in those departments of manufacture, which are to be destroyed by the doctor's grand and captivating idea of " restoring the freedom of commerce^"* may " transfer their industry ?" It may be conceded, that there is a species of affinity between the weaving of cotton and woollen, and a few other manufac- tures. But this cannot by any means answer the doctor's pur- pose. Where will he, or any of his disciples, find " collateral manufactures^'' to employ printers, coach-makers, watch-makers, shoemakers, hatters, paper-makers, book-binders, engravers, letter-founders, chandlers, saddlers, silver-platers, jewellers, smiths, cabinet-makers, stone-cutters, glass-makers, brewers, tobacconists, potters, wii-e-drawers, tanners, curriers, dyers, rope-makers, brick-makers, plumbers, chair-makers, glovers, umbrella-makers, embroiderers, calico-printers, paper-stainers, engine-makers, turners, wheelwrights, and the great variety of other artists and manufacturers ? There are no such collateral manufactures as he has presumed. And it may be asserted, without scruple, that if, by what the doctor speciously styles '■'■ restoring the freedom of trade ^'' five hundred, or a thousand, or ten thousand hatters, shoemakers, printers, or chandlers, are *' thrown out of their ordinary employment," there is no ^'■colla- teral manufacture of so familiar a nature^'' th^t they " can eas'i- * Wealth of Nations, I. 330. 28 ADDRESSES. ly transfer their industry from one to another P For the troth of this assertion we freely appeal to the common sense of an en- ligl'tened public. We state a case, plain and clear. We will suppose five hun- dred workmen, and a capital of five hundred thousand dollars, employed in the manufacture of watches, coaches, and silver- plate ; and that Switzerland, or Paris, or London, fills our mar- kets at such rates as to overwhelm at once all competition, and suppress the home manufactories, as has often been the case in various branches, in this and other countries. Where are the " c-o'la^eral manufactures^'* to receive and emplov those oppress- ed and forlorn workmen, whose prospects, and those of their families are thus blasted ? Are they to become hatters, or shoe- makers, or tailors, or saddlers, or weavers, or smiths, or car- penters ? Is there a man who can persuade himself into the belief of such an order of things ? Is there a man fatuitous enough to suppose, that " the general industry of the country will not there'^y be dimimshed?^'' No : and it is a matter of inexpressible astonishment, that such an idea could have ever been hazarded, in a sober and serious book, which has been so long regarded as a guide to statesmen and legislators, and as the infallible ora- cle of political economy. It will not stand the test of a mo- ment's investi,?ation. As well might we suppose, that, on shut- ti'ig ap the courts of justice, and expelling the whole corps of lawyers, they might at once commence the medical or clerical prtjfession, without any previous study, as that hatters, or tai- lors, or shoemakers, or weavers, or watch-makers, or printers, whom the grand ssstem of "■ purchasing commodities cheap ^^ and the equaiiy grand system of " restoring the freedom oj com- merce^'' might bereave of employment, should find those " coU latcrnl mawfacturex^'' which Dr. Smith has so kindly provided for them. We explicitly declare, that we are far from charging the doc- tor with an intention to mislead or deceive. We believe him, like many other theorists, to have been deluded by his own sys- tem. But be this as it may, we trust it will appear that a more deceptions ground never was assumed. We use strong and une- qur.'ocal language ; as the political heresy we combat is of the most pernicious tendency ; is supported by the most imposing and formidable name in the whole range of political science ; and, as has been observed, embraces among its disciples a large > portion ot those of our citizens whose situations as legislators of the Union and of the .se^'eral states, render their errors on this vital point pregnant 4^ith the most destructive and ruinous consequences. II. Suppose every branch of manufactures, without excep- tion, to have some " collateral manufacture^'' can those who are devested of employment by what is speciously and captivatingly styled " restoring- the freedom of trade ^'' *> transfer their indus- try'''' so '• easily" as Dr. Smith assumes ? We answer distinctly. No : or, at all events, on so very small and insignificant a scale, as to be unworthy of notice, in discus- sions involving the best interests and the happiness of nations. To test the correctness of this opinion, let it be observed, that, in manufacturing countries, all the departments are generally full, and not only full, but there are almost always supernume- raries in abundance : and therefore, even did these " coHateral ma mi futures'^'' really exist, to the full extent the doctor's the- ory would require, and not been *' fancy sketches," derived from his fertile imagination, there would be no vacancy, to which the objects of the doctor's care could " transfer their industry.'''' Although this appears so plain and palpable, as not to admit contradiction or dispute, yet, on a point of such magnitude, it cannot be time ill-spent, to illustrate it by example. There are scarcely any branches between which there is so much affinity as the cotton and woollen. And if the doctor's theory would ever stand the ordeal of examination, it would be in the case of these two " collateral manufactures y Suppose, then, that, by the introduction of East India muslins, four or five hundred thousand persons, (about one-half of the whole number engaged in the cotton manufacture) in England, are at once thrown out of employment : — can any man be led to be- lieve, that they could find a vacuum in the " collateral'''^ woollen " manufacture^'' to which " they could easily transfer their in- dustry ?" Fatuity alone could harbour the supposition. They would find all the situations in that branch full and overflowing. But the strongest argument against the doctor's " collateral mawfnctiires^'* and '•'■transfers of industry^'' remains. He ob- viously did not calculate the results of his owm system, nor take into consideration, that, to give it free operation, its pernicious effect would not be confined to one or two branches of industry. It would extend to the whole mass. The flood of importation on the " restoration^'' of the Doctor's '■'■freedom oftrade^'' would bear down in one common ruin, all those manufactures, of which the articles fell within his description of being '■'■ purchased cheaper elsewhere." What then becomes of his '■'■ collateral manufactures?'''' and '•'■ transfers of industry i^'' and " employment of capital^'' and all those elegant, sounding phrases, with which he rounds off his paragraphs ? Are they not swept away, " like the baseless fabric of a vision," not leaving " a trace behind ?" The doctor with great gravity informs us, that " the greater part of such -workmen are occasionally employed in country la- bour.'''' This is most extravagantly erroneous ; for of all the manufacturers of England or any other country, there is not 30 ADDRESSES. probably one in five, whojias ever been in his life twelve months at " country labour y Their habits and manners wholly incapa- citate them for that kind of employment. A jeweller, a watch- maker, a hatter, a shoemaker, or a weaver, would be almost as unfit for " country labour^'' as a ploughman, or a gardener, or a shepherd, to make hats or coats. But suppose, for a moment, through courtesy, that we admit with Dr. Smith, that all these different manufacturers are so much accustomed to " country labour!!'' as to be adepts at it, what inference is to be drawn from the admission ? Did the doctor believe, did he intend the world to believe, or does there live a man who can believe, that when, by the grand project of *' restoring the freedom oftrade^'' and " buying' commodities from foreign countries^'' which can supply us with them " cheaper than zve ourselves- can make them^^ thousands and tens of thousands of people are *' all at once thrown out of their ordinary employ- ment^ and common means of subsistence^^ they can find employ- ment at " country labour .*"', However extravagant and childish the idea is, the -doctor must have meant this, or the words were introduced without any meaning whatever. But it is well known, that except in harvest time, there is in the country no want of auxiliaries. The persons attached to farms are generally, at all other seasons, amply adequate to exe- cute all the necessary " country labour'''' without " transferring" to that department the industry of those " manvifacturers" who are " all at once throxvn out of their ordinary employment^ and • common means of subs'istence P Dr. Smith, in order to prove the impropriety of those laws, whereby rival manufactures are wholly excluded, observes, " If the domestic produce can be brought there as cheapo the re- '■'■ gulation is ev'idently useless. If it cannot^ it is evidently <-^hurtfui:'"^ This passage ig written in a style very different from that usu- al with Dr. Smith, who is as lavish of words as any writer in the English language, and equally lavish of explanations and ampli- fications. But here he falls into the contrary extreme, and his brevity renders his positions ambiguous ; as he does not conde- scend to give us the reason for those assertions. He leaves the reader to divine why " the regulation is useless .^" why " hurt- ful .^" We must, therefore, endeavour to explore the meaning. It appears to be, if we understand the first sentence, that " all restrictions or regulations," in favour of domestic industry, to the exclusion of rival manufactures, are " useless^' if " the arti- cles can be made at home, as cheap^'' as the imported ones ; be- * Wealth of Nations, 1. 319. ADDRESSES. 31 cause, in that case, the domestic manufacturer is secure from in- jury- by the competition. This is extravagantly erroneous. Suppose our woollen manu- facturers sell their best broadcloth at eight dollars per yard, and that foreign broadcloth to an immense amount, is imported " a.i ( heap.''^ Is it not obvious, that the glut in the market, and the ardent competition between the two parties, would produce the effect which such a state of things has never failed to pro- duce, that is, a reduction of the price below the minimum at which the manufacturer could support himself by his labours, and that he would therefore be ruined ? We now proceed to consider the last proposition : — " The capital oj the countrij remaining' the same^ the demand ''^ for labour xvi II still be the same^ though it be exerted in different '•'•places and in dijferent occupations.''^* To prove the extreme fallacy of this position, we will take the case of any particular branch, in which there are one hundred master manufacturers, each worth ten thousand dollars, forming together, " a capital^'* of one million, whose business is destroyed by the " restoratio?i of the freedom of commerce^^'' and '■'■ the pur- chase of articles from abroad cheaper than we ourselves can make themr It is well known that the property of manufacturers generally consists in buildings for their works, machinery, raw materials, manufactured goods, and outstanding debts. The result of *' the restoration of the freedom of commerce'''' on Dr. Smith's plan, would be to reduce the value of the four first items, from twenty to fifty per cent, and to bankrupt a large proportion of the proprietors. As this is a point of considerable importance, we shall take a single instance, which is always more easily comprehended than a number, and yet affords as clear an illustration. We will suppose the case of a tanner, worth thirty thousand dollars, of which his various vats, buildings, and tools amount to ten thousand ; his hides and leather, ten thousand ; and his outstanding debts, an equal sum. By the inundation of foreign leather, sold, we will suppose, far below the price which affords him a reasonable profit, or even a reimbursement of his expen- ses, he is unable to carry on his business, which sinks the value of his vats and buildings three fourths, and of his stock one-half. At once, his fortune is reduced above twelve thonsand dol- lars : and thus, with a diminished capital and broken heart, perhaps in his old age, he has to go in quest of, but will not find, a " collateral manufacture^'' to employ that diminished capital. — Analogous cases without number would occur, by the doctor's * Wealth ©f Nations, I. 330, 32 ADDRESSES. system of " restoring th.e freedom of trade :'*'* and let lis add, as we can with perfect truth, and we hope it will sink deep into the minds of the citizens of the United States, that throughout this country there are numberless cases equally strong, which no man of sound mind and heart can regard without the deepest sympa- thy for the iil-fated sufferers, and regret at the mistaken policy which produced such a state of things. It therefore irresistibly follows, that Dr. Smith's idea, that *' the capital of the country ivUl be the .same^'' after the destruc- tion of any branch of manufacture, is to the last degree unsound : and, of course, that the superstructure built on it partakes of its fallacy. The doctor gravely informs us, " The tailor does- not make his *' o-wn .'ihoes, but buys them of the shoemaker. The shoemaker *' does not attempt to make his own clothes^ but employs a tailor J'^* And he adds farther : " By means of glasses, hot-beds, and hot-walls, very good f' grapes can be raised in Scotland, and very good wine too *' can be made of them, at about thirty times the expense for ^' which at least equally good can be brought from foreign coun- " tries. Would it be a reasonable law to prohibit the importa- " tion of all foreign wines, merely to encourage the making of ** Claret and Burgundy in Scotland ?"f From these positions, to which no man can refuse assent, he deduces the specious, but delusorj^ maxim of " restoring thejree- dom oj trade^'' which, in fact and in truth, is nothing more or less than opening the door to the admission of foreign goods to an unbounded extent, to the ruin of the citizens or subjects en- gaged in the manufacture of articles of a similar description — and thereby impoverishing the nation, and sacrificing its domes- tic industry at the shrine of avarice, in order to purchase goods *' cheaper than they can be made at home.'''* But by what process of sound reasoning does it follow, because the shoemaker will not become a tailor, or the tailor a shoema- ker ; or because it would be extravagant folly to exclude foreign wines, in order to introduce the culture of the vine into Scotlaiid, a country wholly unfit for that object ; that therefore thousands of men employed in useful branches of business, diffusing happi- ness among tens of thousands of workmen and their numerous families, and enriching their country, are to have their usefulness destroyed, their prospects blasted, their workmen with their fa- milies reduced to distress, and the country exposed to a ruinous drain of specie ? These maxims are the basis on which a large portion, indeed the mpst important part of Dr. Smith's work, depends. ^ If the *Wealtliof Nations, 1.320. f Idem, 320. ADDRESSES. -33 basis be solid and impregnable, tbe fabric will stand firm : but if the foundation be sandy, the superstructure will crumble into ruins. We trust we have fully proved that the foundation is sandy ; and that the necessary and inevitable consequence fol- lows, that the theory itself is wholly untenable and pernicious. With one more extract, we shall conclude this review : " That foreign trade enriched the country, experience demon- " strated to the nobles and country gentlemen, as well as to the *' merchants; but, how^ or in what manner^ none of them knew! " The merchants knew perfectly in what manner it enriched *' themselves. It was their business to know it. But to know *' in xvh'it manner it enriched the countri/, 7vas no part of their " hi/sines.s f The subject never came into their consideration, " but when they had occasion to apply to their country for some " change in the laws respecting foreign trade."* It is hardly possible to conceive a passage more absurd or er- roneous than this. That " the nobles^ and country gentlemen^ and merchants^'''' were ignorant " how foreign tra< e enriched their country^'' is almost too ludicrous to be assailed by argument, and is a strong instance of the delirium, in which enthusiastic theorists are liable to be involved, by the ignis fatuus of their visionary views. Can there be found a man, in the wide extent of the United States, to believe that sir Joshua Gee, Josiah Child, Theodore Janssen, Charles King, Thomas Willing, Ro- bert Morris, George Clymer, Thomas Fitzsimons, Governeur and Kemble, and the thousands of other merchants, of equal mind, who have flourished in Great Britain and this country, could be ignorant " in zvhat manner foreign commerce enriched a country^'' without the aid of the Wealth of Nations ? It is impossible. Take any man of sound mind, who has followed the plough, or driven the shuttle, or made shoes all his life, and clearly state the operations of trade to him, and he will rationally account for the " manner in xvhich foreign trade enriches a country. '''' Indeed a merchant's apprentice of six months stand- ing, could not mistake " the manner.'''' Any one of them would fit once pronounce, that foreign trade enriches a country, ex- actly as farmers, planters, or manufacturers are enriched ; that is, by the verv^ simple process of selling more than they buy. No nation ever was, none will ever be enriched in any other way. And it is unaccountable that Dr. Smith should have supposed that it was reserved for him to make the grand discovery. The principle was well understood by the merchants of Tyre 3000 years before Adam Smith was born. 1 And if Spain be one of the most forlorn and wretched countries in Europe, it has not arisen from ignorance of the true principles of political econo- • Wealth of Nations, 1. 303. 5 •3-4' ADDRESSES. my, but from neglecting them, as well as the counsels or' het wisest statesmen. U»tariz, who flourished about a hundred years ago, in that ill-fated and impoverished country, has ably developed the grand principles of that noble science, in a sys- tem as far superior to Dr. Smith's as the constitution of the United States is superior to the form of government of Spain, Postscript, October 23, 1821. [The grand point, on which the political economists of the new and old school are at issue, is the unlimited freedom, or the qualified restriction of Commerce : the disciples of the new school contending for the former, as thf best means of promot- ing national prosperity and happiness, and the adverse party contending for such restrictions as raised England to that height of power which she now possesses, and to that prosperity which she enjoyed till her wild and wasteful wars crippled her re- sources, impaired her prosperity, and entailed on her an enor- mous debt, with a most burdensome and oppressive taxations- such restrictions, in fine, as retrieved the desperate circumstances in which France was sunk, when subjugated by the Holy Al- liance. In corroboration of the doctrines advanced on this vital topic in the preceding pages [written in March, 1819] I am happy to be able to adduce the powerful testimony and unanswerable ar- guments, of the Quarterly Review for January 1821, which are respectfully submitted to the consideration of the statesmen of- the United States.] [" Questions of commercial policy have been lately treated in " so abstract a manner that their connection with common life " and practice seems to be entirely forgotten. Speculative wri- " ters send forth from their closets general propositions and. " paradoxical dogmas upon matters relative to the common in- " ercourse of the world, with the most confident affirmation of " their universal applicability. They find supporters in persons " of rank and influence, pleased with this sort of ' royal road to " geometry ;' while practical men, too much occupied to weigh " theoretical notions of this difficult nature, or to examine their " operation in the varied and conflicting movements of traffic " and national interests, add their conclusive assent. The adopt- " ed opinions thus acquire general reception, and are promul- *' gated as undisputed and unconditional truth, and the sole " panacea for existing evils. [" Our forefathers could not maintain with greater zeal, that^a *' favourable balance of ti'ade and an abundant circulation of the " precious metals were essential to prosperity, than has recently *' been manifested for the necessity of universal freedom of *' trade, with a view to the attainment of the same object."* * Quarterly Review, No. 48, page 281. ADDRESSES. 35 [" In the conversion of unwrought into wrought commodities " lies the great field in which legislators have endeavoured to *' appropriate by regulations — understood to operate as encou- " ragements — the largest portion of skilful industry and pro- *' duction. [" It has been by means of complete prohil^ition, or the conve- *' nient expedient of taxes on importation, that governments have '' aimed to effect this appropriation of wealth. The duties im- *' posed upon commodities which we cannot produce, as cotton, *' rice, coffee, are to be considered as merely financial : such as " are laid upon productions common to the growth of this coun- " try, as flax, wool, deals, are protective as well as financial. *' The prohibition and duties laid upon some raw, and all " wrought articles, are designed to advance the home produc- *' tion and manufacture ; as in the instance of grain, wrought *' wool, linen, cotton, silk, refined sugar."* [" With regard to wrought goods, the manufacture of which *' requires small space and occupies a numerous and usually " wealthy population, giving much value in a little bulk, it has *' been held the soundest policy to engross the largest possible " portion of such productions. Either all foreign fabrics have " been prohibited, or duties have been placed upon their intro- " duction so heavy as to exclude the chance of an equal compe- " tition with the home manufacture. [" These principles of restriction^ exclusion^ and encouragement^ '' occurred at periods of the earliest application of the mind to the " tnea7is of advancing" the public wealthy and have been the rule of *' conduct for governments for centuries past. They appear in " the oldest enactments of the statute book, commencing with *' our first Edwards and Henrys ; were long inculcated as in- " controvertible, and at this day prevail in ever^^ stage of so- *' ciety : — in China and Turkey, in England, Fi-ance, and the " United States, the most ancient and the last instituted ; — un- *' der every form, the freest and the most arbitrary governments " alike act upon the system. [" This has been tenaciously adhered to in practice, though " for more than half a century all writers upon commercial po- " licy have held an opposite argument ; every one, from the time " of Quesnay and Smith, however differing on other points, *' agreeing in this one principle, that general freedom of trade *' is the surest and most rapid way to wealth. It is maintained " that to force the consumer to pay dearer for home productions *' than he can purchase from abroad, is not to promote the na- " tional advantage, but the interest of the producer at the ex- " pense of that of the consumer. It is asserted, that the freest • Quarterly Review, No. 48, page 282, 36 ADDRESSES. " admission of foreign predicts and manufactures will best as- " sist, in the early stages of society, the progress of agriculture, ■" till the accumulation of capital necessarily raises manufac- " ti res, foreign commerce, and navigation. In the advanced " state, every indi' idual, intent on the increase of his own ad- *' variiage and fortunes, and left to the unrestrained pursuit of " his interest, will follow it with most zeal and effect : and from " prevalent private success results the general prosperity. [" A main principle insisted upon by the advocates of freedom " of commerce, is, that no industry or source of wealth is lost by *' the declension or disappearance of a home manufacture, in con- " sequence of the opening of the country to the admission of a "like foreign fabric possessing a superiority; because some- " thing must be given in payment for the new importation, and "the latoarers in the declining manufacture will transfer them- " selves to the production of this other object required to effect " the exchange. [" The truth of this position rests upon the power of the home " manufacturer to find occupation in some other labour, which " will afford the value wanted to give in exchange for the new " foreign imports. We must retain yet in our possession a suf- " ficient diversity of departments of industry, or some of so much " magnitude as to receive the labourers dislodged from their usu- " al employment by the introduction of foreign commodities. It " can hardly be expected that any material new opening for la- " hour can at this day be discovered ; those remaining depart- " rnents of industry, therefore, must be productive of objects, " which will be received in other countries to an extent to pay " for our new importations ; and those increased in proportion " to our transferred labour."]* [" The transition from one description of labour to another " would not be easy. A man accustomed for a number of years " to a particular kind oftvork^ cannot readily pass over to another " ahogethet d fferent. Persons, especially of the class of life of " artizans and labourers, are slow to form and slow to change " their hab'ts ; the skill which they tardily acquire, they tena- " ciously adhere to, and come with difficulty to learn any other. " A farmer's labourer will not readily become a mechanic ; a " silk -weaver be made a cutler ; a lace-maker or glover be con- *' verted into a maker of woollens." ' p' Not onhj -would a change rf occupation be requisitt^ but also " of the seat of industry. The Norfolk farming labourer might " have to miake hose in Leicester or Nottingham ; the East Loi " thian cottager to weave muslins at Glasgow or checks at Car- " lisle ; and the Spitalfields weaver to become a japanner at Bir- * Quarterly Keview, No. 48, page 283. ADDRESSES. S7 " mingham or a cotton spinner at Manchester. Whole districts " of Ireland might l^ave to interchange residence with those of '' England and Scotland, the north with the south, and the east " with the west, with the rapidity of a horde of Tartars. There ^'^ must be a traiuffvence of the diseng'uged people to the seats of ^'- I'etained manufai ture^ or the retained manufartur e must (extend '' to their reiiidence. The latter is scarcely practicable, when the *' convenience or necessity is considered of concentration, in *' manufacturing industry, of the several connected processes and "branches. {]" The advocates of freedom of trade meet this objection by *' inculcating a gradual chaii.ge, according to the nature of the " industry which they see must be lost. If the silk and kersey- " mere weavers cannot convert their skill to a beneficial use in *' other employments, they are willing to allow a period equal '' to the probable lives of the silk and kerseymere weavers. *' Even then the opening of a foreign import of silk and kersey- " mere must overtake numbers of those exercising these trades ; *' and it will be incumbent, first, to inquire whether this positive *' loss is likely to be accompanied with any commensurate bene- *' fit. [" While the peculiar skill of many trades cannot be turned *' to any other manufacture, the capital to a considerable extent, *' which employs that skill, and which is, in a great degree, fixed " in machinery, buildings, implements, &c. is appUcable to no •■' other object^ and must be lout. In the uncertainty, with all quar- " ters of the world open, how far a manufacture may be affected, '' the capital in many branches will be retained in a delusive hope *' till it decays within tne hand. The knowledge of a particular *' business which is frequently conjoined with capital, and leaves *' a double advantage in the remuneration of the skill and the *' interest of the money, causes an unwillingness to remove to *' other departments of industry, in ignorance of their nature *' and with but a chance of improvement. In such transitions, *' especially in the smaller, which, in the aggregate, form the *' most considerable portion of capital, more is wasted than *•'• transferred ; and all is commonly wrecked in the gulf of *' bankruptcy."*] [" Freedom of trade seems more peculiarly to favour the in- " terests of merchants trading with foreign states, and most to *' prejudice certain branches of manufacture and agriculture ; *' but of the labour constituting wealth, — the commercial., which " interchanges commodities., however usejul and important., — is *' still subordinate to the inanufacturing and agricultural., which " produce those commodities : and the greater the produce of agri- * Quarterly Review, No. 48, page 285. S8 ADDRESSES. *' culture and manufacture, which is raised and interchanged in *' a given country, the greater must be its affluence"* ['■'■ The slightest examination of the history of commerce " shews hoTv many mamijuctures^ and also natural productions of *' homogeneous climates^ have oived their introduction amongst a *' people to special encouragement^ and have risen by protection " till they flourished in self-supported excellence and extension. *' Because interference and encouragements may be carried to an ** extreme, are they, therefore, in all cases, impolitic and inju- *^ rious ? Are governments to be considered as having done *' every thing, when, in fact, they have done nothing whatever .'"f " A superiority in a manufacture arises from skill, the result " of manual dexterity, of chemical or mechanical ability, indi- *' vidua! or co operative. This, at times, will proceed from ac- *' cident, or, when numbers are engaged in an employment, it *' will occur to the observing and reflecting : it becomes mani- " fest in the qualities of finer texture, in brighter or more per- " manent colours, and in method of finishing. These are nice- " ties and refinements, the effect of long labour and attention *' applied in a particular direction. It may be the interest of a natioji *' to preserve within itsef when at a moderate cost of restriction^ <' the rudiments oj all manufactures. Practice will confer skilly " opportunity give rise to invention^ and perseverance and the '•'• groxvth of wealth bestow importance and stability ^-^ [" Florence owed her splendour to the woollen manufacture, " with which she supplied the world."] ***** [" The spirit of " the woollen manufacture, by a kind of Pythagorean transmi- " gration, now resides in France, Flanders, and England. How " has it escaped from Florence ? Can any reason be assigned " but the absence of a su^cient safeguard Jrom external intrusion " and subversion .?"§ [" The favourite idea of our political economists is to banish " regulations, and to leave every species of industry to its own di- " rection. They dwell on the course which wealth naturally takes " in its free progress to its greatest height, through the various sta- . " ges of society, from the hunter, through the pastoral, agricul- " tural, manufacturing, and commercial state. They hold every " interruption to perfect freedom to be prejudicial to the speediest " advance. They beg the question of a never-failing activity and " love of accumulation ; they count not on the disposition to in- " dolence, the contentment with little, taught and actually prac- " tised by so many ; the calls of religion ; the love of pleasure ; " the passion for honour overcoming that for wealth : all which " may arrest the advance of public opulence in its free course * Quarterly Review, No. 48, page 292. f Idem, page 293. ii Idem, page 295, § Idem, page 296. ADDRESSES. 93 " through the early and middle stages. We would call into ac- " tion more motives than one. Individual exertion, on ouradop- " tion of liberty of trade, may not be allowed free plav : if home " regulations do not cramp it, external arts and rivalry will. " If we endeavour to ascertain the result of freedom of Irade " in the commercial history of the world, it will, we believe, be " found that its effects have not been to create any material " braJiches of manufactures ^ nor yet to retain those previously pos~ " sessed. It has, in fact, proved rather favourable to commerce " than to manufactures. Italy ^ once the seat of numerous manU' '■'■Jactures^ which admits allforeig7i goods upon moderate duties^ '■'• has nothing remainitig but some small fabrics of silk goods. " Switzerland receives foreign manufactures, and possesses a few " herself; but these have probably arisen from the forced situa- " tion of the war — she had none previously. Hume remarks " ' that agriculture may flourish even where manufactures and " other arts are unknown and neglected. Switzerlaiid is, at " present, a remarkable instance ; where we find at once the most " skilful husbandmen and the most bungling tradesmen that are " to be met with in Europe.'* Many small territories and iS' ** lands are to be observed in different parts of the globe enjoying *' absolute liberty of commerce^ Hamburgh^ Lisbon, Malta, Guern- '"'■sey, St. Thomas, ^c. yet no manufactures have been found to *' mix amongst them ; and though possessed of certain portions " of commerce, this may be ascribed more to favourable position, " or vicinity to countries under restriction, than to any inherent " virtue of an open commerce. [" The doctrine of free trade has something very generous in " its professions. It aims to remove all impediments and ob- " structions on the intercourse of nations ; to withdraw much " complication in government with regard to legal enactments, " to customs, and custom-house officers ; to prevent the callous *' commission of vice in a profusion of oaths, of smugghng, *' and other encroachments on revenue ; with endless jealousies *' and contentions of trade. In these feelings we participate : *' and could the dreams of the theorists be verified, we zvouldwil- " lingly enter into the adoption oj that entire liberty of trade '■^ which was to lead to the realization cj them. But many of " the evils enumerated are inseparable from the constitutic a of *' society ; laws are possibly us necessary to the protection ofna- " tional industry as they are to that of individual property ; the " safeguards and resources of the revenue must be maintained. " If wealth be an essential part of power and a security of inde- " pendence, we must admit and establish the system best fitted " for its preservation. Narrow, malignant, or hostile feelings * Essay XI. On the populousness of Ancient Nations. 40 ADDRESSES* *' spring from the mind, and not from the existence of restric- *' tions of self-defence or patriotic encouragement. If ill pas- *' sions are bred by prohibitive regulations, their removal .nght " lead to others of a nature not more benevolent — abjectness, " sense of inferiority, and of inability to protect ourselves."*] [" It is a strong reason to doubt the practicubilitif of these *■*■ schemes^ that Stat esmeri have no where ventured upon them; *' not from ignorance^ as has been petxdantlu pretended^ bitt Jrom *' extended knowledge. Neither in old nor new states, do legis- " latures find the Utopian ideas of these philosopher;- to be fea- " sible : yet Adam Smith, the great advocate for the most unre- " stricted trade, is read in all countries and languages, and Ids *' doctrines have been moulded into ail shapes, whether to in- ^'■form youth or piiz'z.le the learned !! ! Reflection and practice *' seem to show, that this valuable writer, in the zeal of his ar- " gument, carried too far his vietvs of freedom of trade ^ as he «.?- *' surediy did those of unlimited production and unrestrained par- ** simonijP^ It is impossible attentively to read this reasoning, witliout a thorougli conviction of the futility of the remedv proposed for the desiruction of particular branches of industry by free im- portation, in Adam Smith's " collateral branches'*'' and " country labour^ NO. IIT. Philadelphia, April 12, 1819. Policy of Great Britain. Extracts from British tariff" of 1818. Wonderful pr ofts of the British nation by manufactures. Ame^ rican system compared with that of Great Britain. We proceed to take a view of that portion of the system of political ecoyiomy pursued in England, xvhiih regards the protec- tion of her manufacturing industry, and which has elevated that country to a degree of wealth, power, and influence, far beyond that 1 to which her population or natural resources would entitle her. This part of her system displays profound policy and wisdom, and may with safety be taken as a pattern by other na- tions, with such variations as particular circumstances may re- quire. We do not pretend that it is altogether perfect; nothing human ever deserved this character. But that it has more ex- cellence than, and as little imperfection as, that of any other na- * Quarterly Review, No. 48, page 300. f Idem pag^e 301. ADDRESSr.S. 41 tion in ancient or modern times, can hardly be questioned. The nearer any nation approximates to its leading principles, the more certain its career to prosperitv. Indeed, it is not hazard- ing much to aver, that no nation ever did or ever will arrive at the degree of power, or influence, or happiness, of v.hich it is susceptible, without adopting a large portion of her plan of protect- ing the industry of her subjects. There are parts of her system, however, which are '' more honoured in the breach than the observ- ance :" we mean those, particularly, which restrain personal lib- ertv, in preventing the emigration of artists and mechanics. The grand and leading object of this system, into which all its subordinate regulations resolve themselves, is to encourage domestic industry, and to check and restrain whatever may in- jure it. This pervades the whole political economy of the na- tion ; and as industry has ever been, and, according to the fixed laws of nature, must eternally be, a great security to virtue and happiness, this is among the primary duties of everj^ legislative body : and their neglect of, or attention to, this duty, affords an unerring criterion of their merits or demerits. To enable her to effect this object. Great Britain is unwearied in her eflfbrts — I. To facilitate the importation of raw materials, for the em- ployment of her artisans and manufacturers ; II. To discourage, or wholly prohibit, the exportation of raw materials ; III. To export her manufactures in the most finished form possible ; IV. To secure her own manufacturers from the ruinous ef- fects of foreign rivalship ; V. To prohil)it the emigration of artists and mechanics, and the exportation of machinery. To accomplish these purposes, she has steadily employed the powerful means of — 1. Bounties on, or encouragement to, tl'.e establishment of new manufactures ; 2. Absolute prohibitions, or sucii heavy duties as nearly amount to prohibition on the importation of such articles as in- terfere with her own manufactures : 3. Drawbacks, on exportation, of the whole or chief part of the excise paid on the various articles, or on the raw materials of which they are composed. All great undertakings, such as the establishment of exten- sive manufactui-es, require heavy disbursements previous to their commencing operations ; and in their incipient state are at- tended with great difficulty, in consequence of which they too frequently fail of success in all countries, and involve the under- takers in ruin. While they are in this perilous situation, the aid of government is necessary, and wisdom commands to afford it. 6 4-2 ADDRESSES, Small temporary sacrifices a>e abundar^tly compensated, by im- mense permanent national advantages. We shuU furnls i noble instances of this kind, on a large and liberal scale, worthy of a great nation, when we enter on the discussion of the policy of Prussia. It was by these means that the woollen manufacture was first estaitiished in England. Edward III. a most sagacious prince, held out great inducements to the manufacturers in that branch to remove from Flanders to England. *•' Very great privil^'ges *' xvtre granted^ and pennkons -were alloxved to them Jrom the *' crcvjn^ till they should he able to gain a comfortable livelihood *' bif their ingenuity nn.-l induxfryy* Further to favour and foster this infant manufacture, the ex- portation of wool, and the importation of foreign cloth were prohibited.! Such was the degree of care and attention undeviatingly be- stowed on it, that " in the short and turbulent reign of He'nry IV." who reigned but fourteen years, and was almost constant- ly at war, " there were no fewer than twelve acts of parliament " made for the regulation and encouragement of that manufac- " ture ; for preventing the exportation of wool and importation of " cloth ; and for guarding against frauds in the fabrication of it *' at home."=* It is obvious that the continuance of bounties beyond the in- fancy of manufactures, would be oppressive to a nation, and waste its treasures. And therefore as soon as they are fully es- tablished, the English government usually adopts a cheaper and equally effectual mode of fostering them, by the prohibition of the rival articles, or by the imposition of such heavy duties as nearly to amount to prohibition, and thus securing to its own subjects the whole or principal part of the domestic market. in the year 1463, under Edward IV. the wisdom and policy of fostering domestic industry, having become generally under- stood, the prohil'ition of importation, which had previously been confined chiefly to woollens, was extended to a very great va- riety of articles, viz : Woollen caps Andirons Buskins Woollen cloths Gridirons Shoes Lsces Locks Galoches Rings of copper, or latten Dice Con bs gilt Tennice balls Pattens Chaffing dishes Points Pack-needles Crosses Purses Painted ware Ribands Globes Forcers * Henry's History of Great Britain, X. 187. * Mortimer's Elements of Commerce, p. 16. •jr Anderson's Histoiy of Commerce, J. 401. ADDRESSES. 4a Fringes of Silk Ditto of thread Laces of tliread Silk-lwined Silk in anywise embroi- dered Laces of gold Ditto of Silk and gold Saddles StiiTups All harness pertaining to saddles Spurs Bosses for bridles Hammers Pincers Fire tongs Girdles Caskets Harness for girdles, of iron, Ciiatting balls latten, steel, tin, or al- Hanging candlesticks kemine Rings for curtains Any thing wrought of tan- Ladles Scummers Sacring-bcUs Counterfeit basins Ewers Hat brushes Wool-cards White wire If detected in the impor- tation, they were to be for- feited, one half to the king and the other to the infor- mer.* ned leather Any tanned furs Corks Knives Daggers Sword bkdes Bodkins Shears Scissors Razors Chessmen Playing cards Under Charles II. the prohibition was extended to Wool-cards Bone-lace Fringe Card-wire Cut-work Buttons Iron-wire Embroidery Button or needle workf Dripping-pans The list of articles at present prohibited to be imported into Great Britain, is not quite so extensive as that of Edward IV. They are as follows: — Brocades Fringe Velvet Calicoes Girdles Laces Chocolate and Cocoa paste Silk or leather mits and Needle work Cocoa nut shells or husks gloves Plate Embroidery Manufactures of gold, sil- Ribands Silk ver, or metal Laces Silk stockings Tobacco stalks and snuff Shapes for gloves or mit» Thi-ead work Wiret The penalties for the importation of some of those articles are verv severe. For example, besides the confiscation of the goods, there is a forfeiture of two hundred pounds sterling for every offence in the case of leather gloves. The most general mode, however, of encouraging domestic in- dustry in Great Britain, at present, is by the imposition of such heavy duties as in most cases amount to prohibition ; or if the rival articles will still admit of importation, they cannot, from the necessary advance of price, materially affect the native ma- nufacturer. We annex a list of some of the articles, thus pro- tected, with the amount of the duties imposed on them. Extracts from the British Tariff'of \H\S. . Articles subject to duty of 59/. 7s. 6d. per lOO/. value. Baskets Musical instruments Nuts Oil of pine Oils not particularly enu- merated Almond paste Dressing-boxes Snuff-boxes Manufactures of brass Pens Pomatum Telescopes Thread, not otherwise enumerated Turnery, not otherwise enumerated * Anderson's History of Commerce, I. 636. ■j- Postlethwaite's Dictionarj' of Commerce, I. 975. % Pope's Practical Abridgment of the Laws of Customs and Excise. Title 284. 44 ADDRESSES. Paintings on glass Stone pots Vases, except of stone or Pencils Coloured paper and prints marble Pieces of skins and furs Sago powder Wicker-ware Spouts of wood Scratch brushes Silver, gilt, or plated wire Statues, except of marble Seeds not particularly enu- Worsted yarn or stone merated Goods of all kinds, in part Steel not otherwise enu- Silk-worm guts or wholly manufactured. merated Skates Bronze figures Ticking Skins and flu's Worsted caps Ticks Walking sticks Carpets Tin-foil Thread or worsted stock- Caniages Tooth-powder ings Clocks Toys Filtering stones Manufactures of copper Tubes for smoaking Open tapes Copperplates engrav- Tubs Worsted tapes ed, &c. &c. Watches Tapestry, not of silk To 31/. 1-i. 4f/. per 100/, Chalk Cast iron Lime-stone Copper in pigs Minerals not otherwise Polishing stones Hoofs of cattle enumerated Rag stones Horns Polishing rushes Tanners' waste Silk laces Ships with their tac- Tare Pig lead kle Touchstone To 791. 3,9. 4^. per 100/. China ware Earthen ware Shawls Tobacco pipes To 63/. 6.9. %d. per 100/. Linen, not being chequered or striped Cause of thread To 85/. \0s. per 100/. Cotton stockings Cotton caps Cotton tl-u-ead Linen sails. To 114/. per 100/. Glass bottles, Rough plate glass, German sheet glass, Glass manufactures. To 142/. 10.S. per 100/. Leather fan mounts Skins or furs, tanned. Articles whereof leather Linens chequered or tawed, cumed, or is the most valuable part. striped, painted, or any way dressed. Hides, or pieces of hides, stained Articles made of leather tanned tawed, or in any way dressed. '\c An idea has been long entertained, by many well meaning- people, that to secure the home market to our own manufac- turers, operates merely to enable them to prey on and oppress their fellow-citizens, by extorting extravagant and exorbitant prices for their productions. And hence many of our planters and farmers in congress have uniformly opposed duties for the mere purpose of protecting manufactures. There are some who have openly avowed, that their sole view in laying impost du- ties, is to provide a revenue for the expenses of the government. And a writer of considerable celebrity, John Taylor, esq. of Caroline county, Virginia, has devoted a number of chapters of his Arator, to prove that every dollar given by a nation as bounty, or imposed as duty, to protect domestic manufactures, is a dollar robbed from the pockets of the farmers and planters ! It is a trite but indisputable truth, that one solid, well-estab- lished fact, bearing upon any particular point, will countervail a long train of arguments, however plausible, which militate ADDRESSES. 45 against that fact. Behold a case, which must operate to open the eyes of every man accessible to conviction. There is pro- bably no country in the world, where the system of heavy pro- hibitory duties is carried farther- than in England : and yet. not- withstanding this circumstance, and the enormous burden of taxation which she sustains, as well as the boundless extent of her paper money, which must enhance the expenses of living, she is able to meet in their own markets, and undersell, a iaige portion of the manufacturers of all the other nations of Chris- tendom. This fact sets the question at rest forever ; and es- tablishes, on the firmest basis, the luminous maxim of Alexan- der Hamilton, a maxim that ought to be written in letters of gold, and affixed in a conspicuous place in the hall of congress, that powerful body, on whose wisdom or errors depends the prosperity or decay of a mighty empire : — " Though it rvere true^ that the immediate and certain effect ^'- of regulations controlling the competition of foreign rvith do- " me.stic fabrics xvas an increase of price^ it is universallij tme^ " that THE CONTRARY IS THE ULTIMATE EFFECT WITH EVERY " SUCCESSFUL MANUFACTURE. When a domestic manujacture '"'' has attained to perfection^ and has engaged in the prosecution of '-^ it a competent number of persons^ it invariably becomes *' CHEAPER. Being free from the heavy charges xvhich attend *' the importation of foreign commodities^ it can be afforded cheap- " er, and accordingly seldom or never fails to be sold cheaper^ in *■'' process of time^ than xvas the foreign article for xvhich it is a " substitute. The interned competition xvhich takes place ^ soon " does axvay every thing like monopoly ; and by degress reduces " THE PRICE OF THE ARTICLE TO THE MINIMUM OF A REASONA- *' BLE PROFIT ON THE CAPITAL EMPLOYED. This aCCOrds xvith ** the reason of the things and xvith experience.^'''* The true tests of the excellence or folly of any system, are its results, when carried fully into operation. These confirm sound theories, however unpopular they may appear on a superficial view ; and set the seal of reprobation on pernicious ones, how plausible soever an aspect they wear on paper. By this touchstone, let us judge the political economy of England, respecting her manufactures ; and, on a fair examina- tion, we shall unhesitatingly bestow the most unqualified plaud- its on her parliament, for the admirable and incomparable sys- tem it has devised. We may fairly assert, without the least danger of contradiction, that there never existed a legislative- body which bestowed more attention on the solid, substantial, and vital interests of its constituents, so far as respects national industry in all its various Jar ms, * ITamilton's works, T. 210. 4b ADDRESSES. We might extend tlie consideration of the wonderful excel- lence, and immense advantages of the policy of Great Britain respecting manufactures, trade, and commerce, to volumes. The subject appears inexhaustible. But our limits forbid much detail, and constrain us to confine ourselves to two points : — I. The immense wealth she acquires by this system ; and II. The astonishing increase of power it has secured her. I. We shall, on the first point, confine ourselves to the four great maaufactures, linen, cotton, woollen, and leather, and make no doubt, the statement will astonish our fellow-citizens, and re- move all doubt of the correctness of the eulogiums we have ha- zarded on the British political economy. According to Colquhoun*, the annual proceeds of the cotton manufacture are - - - £ 29,000,000 The woollen - . - - 26,000,000 The linen - - - - - 15,000,000 The leather - - - - 15,000,000 Total- £ 85,000,000 Whereas the raw materials of the cotton cost - - ^6,000,000 The woollen - - 8,000,000 The linen - - 5,000,000 The leather - - 3,000,000 £ 22,000,000 Balance £ 63,000,000 Thus a gain is secured to the nation of 63,000,000 of pounds sterling, or above 270,000,000 of dollars annually. This at once solves the mystery of the wonderful '■'■ porver and resources^* of Great Britain, and establishes beyond controversy the wis- dom of its policy, which is, in every respect, let us observe, the antipodes of the doctrines of Adam Smith in the Wealth of Nations. What stupendous facts ! What a lesson to the legislators of other countries, particularly the United States ! We possess the capacity of raising the raw materials of the cotton manufac- ture, the chief of the four kinds above stated, to an extent com- mensurate with the demand of the whole world ; and we could, with ease, if proper encouragement were oflPered, produce the ma- terials of the other three, in sufficient quantity for all our purposes. * Treatise on the wealth, power, and resources of the British Empire, p. 91 ADDRESSES. 47 II. The second point, to which we wish to turn the attention of our fellow-citizens, in order to establish the soundness of the system of political economy, respecUng her manufacture >i^ pur- sued in England, is the wonderful increase of power it has se- cured her. For twenty years she was the main support of a war of unex- ampled expenditure, against the most gigantic combination of power, and the most formidable monarch, that Europe has be- held for a thousand years. Her resources alone prevented him from arriving at universal empire. She not only preserved her- self from the loss of her possessions, but conquered colonies and dependencies of her enemies, of great extent and immense value. Her revenue for the year 1812, was about 63 500,000/.* and in the same year her expenditure was above 112,000,0C0/.f During the whole of this war, she was not obliged to borrow money from anv other nation ; but made large loans to several. She has subsidized some of the first-rate monarchs in Europe. Her enormous debt, which, according to Colquhoun, amount- ed at the close of 1813, to above 900,000,000/.:}: is wholly owned by her own subjects, except about 17,000,000/. purchased and owned by foreigners. It is no impeachment to the merits of her system, that her paupers amount to above 1 ,500,000, and her poor tax to 6,000,000/. sterling, equal to 26,000,000 of dollars. § This lamentable fea- tiu'e in her affairs, arises partly from the labour of the working class being superseded by machinery, and partly from the waste- ful and ruinous wars she has maintained, which alone have pre- vented the country from being an earthly paradise. Since our recent War, she has been enabled to lay this country under heavy contribution, so that there is an enormous debt due her, notwithstanding she has possessed herself of a very large portion of our bank and other public stocks, in payment for her manufactures, which will yield her a great and permanent in- come, at the expense of the United States. To her suppport of domestic industry alone, she chiefly owes these capacities and advantages, and the inordinate power she possesses. Were she to abandon her system, and adopt that of Adam Smith, she could not fail, in a few years, to be reduced to a level with Spain and Portugal, All her treasi:res would be drawn away to the East-Indies, France, Germany, Sec. We shall close with a comparison between her policy and that of the United States, on a few plain and simple points : * Colqulioun on the wealth, power, and resources of the British Empire, p. 258. t Idem, 261. t Page 273. He states, however, in this pag-e, that 236,000,00U/. of this debt have been redeemed, § Idem, 1 25. 48 ADDRESSES. GRICAT BRITAIN THE UNITED STATES Prohibits the importation of calicoes, Proliibit no manufactured article* silks, threads, ribands, velvets, &c. even whatev r, however great tiie capacity from her own dependencies. (See page of our citizens to supply them. 43.) She imposes a duty of 85 per cent. They admit all cotton fabrics, of ad valorem on various articles of cot- eveiy denominatjon, from Great Bri- ton, the production of those depen- tiun and herdependeiides, ^ndnny oi'.i'^v oies. pai-t of th'. globe, at 27 1-2 per cent. (except those below 25 cents per sq- i^re yard, which are dutied as at 25 cen-.s.) She imposes a duty of 79 per cent. ■ Al though vthey could supply tlicm- ad valorem on earthenware. selves superabundantly with eartiien- ware, ihey admit it at 22 per cent ! She imposes a duty of 142 1-2 per They ad.nit leather manufactures at cent, on leather manufactures. 33 per cent. COiVlPARlSON CONTINUED. BRITISH DUTJ.-^.s. UNiTED STATKs' DUTIES. Woollen clo'.r.s, per \ ard, 345. ster- 27 1-2 per cent, ad valorem, ling, equal to about 7 ilr>':l.s. 5-i cts. Hats, per piece, 34.?. or raolls. oOcts. 33 per cent. • Glass bottles, 114 per cent. 22 per cent. Linens, not chequered or striped, 63 16 1-2 per cent, per cent. Linens, chequered or striped 142 16 1-2 per cent, per cent. The annals of legislation and revenue cannot produce a stronger constrast between the most profound policy and its di- rect opposite. Thus we see that Great Britain, possessing machinery which increases her. powers of manuiacturing at the rate of two hun- dred for one, does not reiy on it for the protection of her do- mestic manufactures, bat interposes the powerful shield of pro- hibition and enormous duties, to preserve them from danger ; while the United States, which had, at the close of the war, a great number of important and extensive manufacturing esta- blishments, and invaluable machinery, erected and ad^'antage- ously employed during its continuance, and although blessed by a bounteous heaven with a boundless capacity for such esta- blishments, have, for want of adequate protection, suffered a large portion of them to go to decay, and their proprietors to be inv^olved in ruin, the helpless victims of a misplaced reliance on that protection ! The comparison iraght be pursued to a very great extent : but we trust therje is enough stated to enable our fellow-citizens to account for the prostrate situation of our affairs. No two na- tions ever carried on intercourse on terms more entirely desti- tute of reciprocity : and hence our citizens on the banks of the Missouri are clothed with fabrics manufactured in England and Hindostan, while thousands of useful men, women, and children, ADDRESSES. 49 capable of furnishing superior goods, at equal prices, arc lite- rally pining in wretchedness, in our towns and cities, for want of employment, and many of them driven to mendicity, to support a miserable existence ! and while our country is impoverished, to support the manufacturers of the East Indies and various parts of Europe. And why (let us solemnly ask) does this Ian ent- able state of things exist ? Because, in the language of Adam Smith, '"^foreign countries can furnish us xvtth commodities " cheaper than roe ourselves can make them ,-" and we have thought it " hetter to buy from them^ with some part of the produce oj our " 07vn industrif /" Every prudent merchant, farmer, or planter, commencing his career of business, will naturally inquire into the plans acted on by those engaged in similar pursuits, before he determines on his own. Those dictated by wisdom, tested by long experience, and attended with success, he will study as guides by which to regulate his conduct. Those emanating from folly, sinister views, or empiricism, he will regard as beacons to warn him to beware. This conduct, indisputably wise in private life, is imperiously the dut\' of those on whom rests the high responsibility of re- gulating the career of nations, particularly in their infancy or youth. This is a duty which no enlightened or honest legisla- ture will ever neglect. We trust, therefore, that a calm and candid observation of the fatal consequences of adopting the doctrines of Adam Smith, as well as of the transcendent benefits, public and private, re- sulting from the English system, which is in undeviating hosti- lity with that of the doctor, will serve to displav the true policy which this country ought to pursue, in order to fill the high des- tin)'^ which appears allotted to her in the course of human events j and induce the legislature of the union, to devote that attention to the protection of domestic manufactures, without which the united states can never hope to be really independent, or to enjoy that degree of prosperity and happiness which God and nature have placed within their grasp ; and which cannot be neglected without a most culpable dereliction of our duty to ourselves, and to our posterity, on whom the folly or wisdom of our councils will operate when we are consigned to the peaceful grave. 50 ADDRESSES. NO. IV. Philadelphia^ April 26, 1819. Policy of Russia. Extracts from her tariff. State of cotton manufactures in Rhode Island. Prussian policy. Bounties and premiums for manufactures. We have presented to your view, fellow-citizens, a cursory- sketch of the admirable and beneficent policy of Great Britain* on the all-important and vital point of fostering and protecting domestic industry — a policy, we repeat, and wish steadily borne in mind, in direct hostility with the doctrines of Adam Smith, which rank among their supporters so large a portion of our ci- tizens. We now request your attention to the policy of a mighty em- pire, whose situation bears considerable analogy to that of this country. Russia, like the united states, possesses territories of most immoderate extent, which are very slenderly peopled. The cultivation of her vacant lands, according to the captivating and plausible theories of many of our citizens, might find employ- ment for all her inhabitants. And as other nations, if " the freedom of trade -were restored.^ could furnish her -with commodi- ties cheaper than she could manufacture them^'' she ought, ac- cording to Adam Smith, to open her ports to the merchandize of all the world. But, low as we fastidiously and unjustly rate her policy, she has too much good sense to adopt a maxim so pernicious in its re- sults, although so plausible in its appearance. And let us add, its plausibility is only in appearance. It vanishes on even a cur- sory examination. Russia fulfils the indispensible duty of fostering and protect- ing domestic industry, and guarding it against the destructive consequences of overAvhelming foreign competition. This is the great platform of her political system, as it ought to be of all political systems ; and it is painful to state, that so far as re- spects this cardinal point, she is at least a century in advance of * Objections have been made to our statement of the prosperity of England resulting- from her protection of domestic industiy, grounded on the oppression she exercises on, and the abject state of, some of her dependencies. This does not in the least mihtate with our view, which went to prove, from inchsputable facts, tliat the protection of domestic industry in the island of Great Britain, had there produced as great a mass of wealth and prosperity as ever existed. Her wars, which greatly impair that prosperity, and her treatment of her depen- dencies, which is unjust and oppressive in the extreme, have not the most remote connection with our theory. ADDEESSES. 51 the united states. She is not satisfied with the imposition of heavy duties for the purpose of raising a revenue, which, with too many statesmen, appears to be the chief, if not the only ob- ject worthy of consideration in the formation of a tariff. No. She prohibits, under penalty of confiscation, nearly all the arti- cles with which her own subjects can supply her, unaffected by the terrors, so powerfully felt in this country, of giving a mono- poly of the home market to her own people — terrors which have probably cost the United States one hundred millions of dollars since the war — terrors which the profound and sage maxim of Alexander Hamilton, quoted in our last number,* ought to have laid in the grave of oblivion nearly thirty years ago, never to rise again to impair the prosperity of the nation, or the happi- ness of its citizens. The annexed list deserves the most pointed attention, and cannot fail to surprise the citizens of a country, where unfortu- nately nothing is prohibited, how great soever the domestic sup- ply, and where there are hardly any duties deserving the name of prohibitory, and few affording adequate protection. List of goods the importation of which is prohibited into the Rus- sian empire^ according to the tariff of l%\Q.\ Alabaster. Beer of all kinds, except English por- Ale, ter. Bronze, gilt or ungilt, statues, busts. Boots of all kinds. vases, urns, girandoles, lustres, can- Baizes of all sorts. delabras, &c. Cotton g-oods, wroug-ht of cotton inter- Beads of all kinds. mixed with gold and silver ; also Blacking for boots and shoes. dyed, printed or cliintz. Brandy, distUled from grain of every Candles. kind. Chess-boards, and other boards for Brandy, poured on cherries, pears, or games, with their appendages. other fruits. Carpets interwoven with gold or silver. Brooms, of twigs or rushes for cleaning Cranes of all kinds. clothes. Confectionary of all kinds. Bolts of metal, of every kind for fasten- Cringles. ing doors, &c. Coffee-mills. Books, covmting house books in blank. Coin, base coin, or being of a less value Buttons of all lands. than its denomination. Russian bank Baskets of sti-aw or twigs. notes. Butter of cows or sheep. Combs of Horn. Besoms, brushes of all kinds. Copper utensils of every kind Bellows, for fire-places. Copper articles, whether hammered or Blankets, or bed-covers, of cotton, lin- cast, &c. ornamented with designs, en, or wool, with embroidery, or wo- gilt or ungilt, of every kind ; also ven with silver or gold ; also of silk handles, plates, and suchlike arti- or half silk, without exception. cles ; the same applies to brass. Boxes, sand and spitting boxes. Clothes of all kinds, except those of Bedding of all kinds, excepting those passengers. of passengers. Canary seed. Balls of lead. Ciystal or cut-glass ware of all kinds. * See supra, page 45, + Rnrdansz, on European Commerce, page 54-. 52 ADDRESSES Cases of all kinds. Cords of silk, cotton, camel's hair, or worsted. Cloth, fine black cloth, and all coarse cloths and baizes. Cicory, ground in imitation of coffee. Crystal drops, for lustres and giran- doles. Chocolate. Clocks, for tables or walls, with metal or glass ornaments of any kind. Clocks or watches in enamel with strip- ed edges. Caps of all kinds. CaiTiages of all kinds, except those be- longing to travellers. Boors for stoves of all kinds. Down of all kinds, except those speci- fied as admitted. Dried fruits. Embroider}' of gold of every descrip- tion of material. Earthenware vessels, or utensils of common clay, delft, fayance or chi- na, Porcelain and the like, with gold silver or painted borders. Fringes of all kinds. Fans. Feathers. Flesh of all kinds, dried, salted or smoked. Fruits, preserved, wet or dried in sugar. Gai'den fruits of all sorts, salted in vin- egar, fresh or dried. Fumigating powder Frames for windows. Frames for pictures, except belonging to pictures or engravings imported. Flax for wicks. Fishing tackle. Gallantry ware, including all sorts of high priced trifles, ornamented or unornamented, with high priced stones and pearls, except tliose oth- erwise specified. Galloon. Gold and silver, or gilt plate, or ves- sels of all kinds. Glue, made of fish or leather. Gold and silver lace, edgings, tassels, cords, nets, gauze, &c. Gloves, of woollen, cotton, or linen. Garters. Gun-powder. Glass drops, for lustres, girandoles, all glass-ware, and utensils of every kind, glass girandoles, lustres, &c. Window glass in circles. Gaiters, of leather. Gingerbread. Gin or Geneva. Gricus, (a kind of common musliroom or fungus.) Hair, human hair. Hair powder. Horn combs, horns of elk, reindeer and other sorts unwrought, except such as are imported in Russian ships having been taken by Russian hunts- men. Hilts, for swords, sabres, daggers, &c. Harpsichords or piano fortes, with bronze ornaments on the bodies, ex- cept such as are applied to strength- en them, or upon the legs, or as locks. Hides, prepared, and every article made of leather, except those specified as admitted. Hats of all kinds. Harness and such like for horses. Honey, in the comb and prepared. Handkerchiefs printed on hnen, clotli, silk of every kind, with a border woven or printed. Hangings of tapestry, or paper, or cloth, paper and wool together, wo- ven, painted linen, or woollen, and all other kinds. Iron, cast, in guns, shot, plates thick or tliin, kettles, and other cast iron work. Iron wrought into bars, double, or sin- gle for plates. Ii'on, pig iron unwrought or wrought in pieces, wire utensils of every kind, blacksmith's work small ware, every sort of locksmith's and whitesmith's work, except those specified else- where as permitted. Iron anchors. Ink, of all sorts in bottles or powders, also Indian ink (printer's ink, duty free.) Inkstands of all kinds. Jewelry. Isinglass, offish (glue.) Kingees, or fur shoes and boots of eve- ry kind. Linen, as shirts, &c. of all kinds, except passengers' baggage. Linen manufactures of all kinds except cambric. Locks of all kinds. Lime, slaked or unslaked. Lace. Liqueurs, of brandy. Lustres of all sorts. Lanterns. Addresses. 53 Lines, coarse, twisted, such as are used in fishing- nets and the Uke. Leath(>r, see hides. Ladies' ornaments of all kinds. Looking glasses, see mirroi-s. Mustard, di-y or prepared in glasses, or jars. Mead. Mirrors, or g-lasses intended for them. Macaroni. Muslin, or muslin handkevcliiefs em- broidered. Mi'ls, for grinding cofl'ee. Mufi's, of all kinds. Marble and Alabaster clocks, table slfibs, pillars, utensils, and all other (ornaments) not specified as admit- ted. Mats, made of straw to put on tables under dishes. Mats, sti'aw and rush. Mittens, and leather for warm mittens. Marienglass, or talc. Night caps of all kinds, except those specified as admitted. Nails, of copper and brass, or with cop- per and brass heads, or washed, plat- ed, gilt, tinned, or of iron and tin. Nets of all kmds, and netting. Oil, rape oil. Ornaments for ladies. Pins and skewers of all kinds. Paper of all kinds, not specified as ad- mitted. Plate, gold and silver vessels of eveiy description, also gilt plate. Parchment. Playing cards. Pocket books of all kinds. Pens, quills, and feathers. Powder, haJrpowder, pomatum, fumi- gating powders, gunpowder for guns or cannon. Porcelain. Pipes for tire engines. Pipes for smoking of all kinds, except of plain meerschaun. Pickles, see fruit or vegetables. Ribands of orders of knighthood. Rum. Sausages of all kinds. Spirits, extracted from grain, double, or spirit of wine sweetened. Shoes of all kinds. Shot of lead and balls. Sashes of all kinds. Soap of all kinds, except Venice, Spa- nish, Turkish and Greek. Sticks of all kinds. Suspenders for gentlemen,|except those specified as admitted. Saltpetre, rough, or refined, except for the use of apothecaries. Silver plate and utensils of every kind. Silver ware or tlu*ead flattened, span- gles and foil. Shppers of all kinds, except those spe cified as admitted. Sugar, fruits in sugar, dry or wet. Sealing wax. Spices of all kinds. Saddle cloths. Snuffboxes. Sword belts. Silk of all kinds, silk or half silk goods, except those specified for admit- tance. Toys of all sorts. Tapes of aU kinds. Tiles for stoves. Tapestiy, see hangings. Tin, grain tin, or tin ware of any kind. Tea of every sort.* Tinsel, or foil, flat, woven, red, white in lace, lace in liveries, galloons, ri- bands, edgings, or bindings, &c. Vermicelli, or macaroni. Vinegar of all sorts, except w^ine vine- gar. Wasn basins, tea pots, coffee pots, can- dlesticks, waiters, stands, or such Uke goods, whether of copper, red or green, say copper or brass, iron, tin- ned, or untinned, varnished, plated, gilt or silvered, argent, hache, or with silver edges separately applied. Whips for coaclunen. Waddings. Wafers. Wigs. Ware, white, yellow, or coloured. Wood, manufactm-ed, except in such articles as are required by passen- gers for their baggage. Window frames. Wicks for candles of flax or thread. Window glass, in circles. Watches. Woollen goods, baizes of all sorts ; see cloth. * Tea is adnntted over land from China. An appalling reflection arises from the view here given of thr policy of Russia ; a reflection which we would willingly suppress, but which, fellow citizens, justice to the subject forces us to 54 ADDRESSES, present to your minds. We are imperiously led to offer it from a conviction, that to induce a patient to submit to medicine or regimen, it is necessary he should be convinced of the existence of his disease. And in the present disordered state of our * manufactures, trade, and commerce, it is absolutely necessary to " hold the mirror up to nature," and " nought extenuate, nor aught set down in malice." The united states, as is admitted by writers of various na- tions, enjoy the best form of government in the world. It would therefore be natural to presume, that with such a go- vernment, and with a representation probably as freely and fair- ly chosen, as any legislative body in any age or country, the in- terests of its various descriptions of citizens would be more scrupulously guarded than those of any other nation. Yet we have here the most cogent proof of the extreme fallacy of such a presumption, so far as regards the large and important class of citizens engaged m manufactures, on whose success and prosperity so much of the strength and resources of nations de- pends. This description of citizens^ must look with envy at * It is too common, we apprehend, for many of the farmers and planters of the southern states, to regard with disesteem, or, in common parlance, " to look down" on manufacturers as beneath them in point of respectability. To this source may probably be ascribed the inflexible refusal of that protection which was so earnestly solicited for the manufacturing' interest throughout the union. It is hardly possible to conceive of a greater absurdity. We touch this delicate subject freely. We, however, mean no oflfence, and hope none will be taken. Our object, we trust, will be regarded by liberal-minded men as not only inno- cent, but laudable. It is to coiTect a deep-rooted and pernicious prejudice, which tends to produce jealousy and alienation between the different members of one family, who ought to cherish for each other kindly sentiments of regard and good wUl, and who are so closely connected in point of interest, that it is impossible for one to suffer heavily, without the others being deeply affected. We freely ask, and request a candid reply, can there, in the eye of reason and common sense, be found, on the most impartial scrutiny, any superiority in a South Car- olina or Virginia planter, siu-rounded by three or fom- hunched slaves, over a pro- prietor of one of the extensive factories in Rliode Island, in whicli an equal num- ber of free, independent, and happy workmen, with then* wives and children, are employed ? As our object is conciliation, we forbear to assert any supeiiority on the other side. But in order to afford a fair opportunity of deciding this im- portant question, of the merits, demerits, and usefulness of the ditferent de- scriptions of citizens, we state some important facts, which bear forcibly on this subject. In the year 1815, there were, as stated in a memorial to Congi-ess of the cottonmanufacturersof the town of Providence, witliin thirty miles of that town,* Cotton manufactories 140 Containing in actual operation, .... spindles 13U,ij00 Using annually, ...... bales of cotton 29,000 Producing yai'ds of the kinds of cotton goods usually made - 27,840,000 The weaving of wliich at eight cents per yard amounts to - § 2,227,200 Total value of the cloth - g 6,000,000 Persons steadily employed - - ... 26,000 We may demand, whether thi-oughout the world, there is to be found any equal space devoted wholly to agriculture, which furnishes employment to one-fourth * Weekly Register, vol. ix. page 44. ADDRESSES. 55 the paternal and fostering care bestowed on persons of the same class by the emperor of Russia, one of the most despotic mo- narchs of Christendom, The contrast is decisive. It reflects honour on the profound wisdom and sound policy of that prince — and, fellow citizens, cannot fail to excite painful sensations in your minds, to reflect how the united states lose on the com- parison. It could never have entered into the mind of Hancock, Adams, Franklin, Washington, or any other of those illustrious men, who, in the field or cabinet, achieved the independence of this country, that before the lapse of half a century, American citi- zens should be forced to make invidious comparisons between their own situation and that of the subjects of a despotic em- pire ; and that the protection denied to their industry is liberal- ly afforded to that of the subjects of Russia. In order to render this extraordinary fact more striking, we shall, fellow citizens, compare the situation of a subject of Rus- sia and a citizen of the united states, engaged, for instance, in the cotton manufacture. The former, we will suppose, embarks S50,000 in that busi- ness. He has no competition to dread but that of his fellow subjects. His paternal government closes the door against his destruction, by shutting out the interference of anv other nation. He has a large and beneficial market, and, in consequence, en- riches himself, and adds to the wealth, strength, power, and re- sources of his country. What a chilling and appalling contrast when we regard the si- tuation of the American engaged in the same useful line of bu- siness ! When he has expended his capital, established his works, and entertains what he has ground to deem a reasonable hope of success, and of that reward to which honest industr)^ has so fair a claim, the market, on the supply of which he formed all his calculations, is deluged with rival articles, manufactured at a distance of thousands of miles, which can be afforded at low- er prices than his, and which accordingly destroy his chances of sale. He casts an imploring eye to his representatives for the pai-t of the number of individuals, or produces one-fourth of the amount of wealth or happiness ? We trust this brief view will serve to remove the film from the eyes of those citizens who, for want of due consideration, have clierislied opinions on the sub- ject of manufactures, and manufacturers, so diametrically opposite to fact, and so pregnant with i-uinous consequences. " Honour or shame from no condition rise : " Act well your part : there all the honour lies." And the manufacturer of cottons, woollens, watches, paper, hooks, hats or shoes, who " acts well liis part" has no reason to slu'ink, and we ti-ust will never shrink, from a comparison with any of his feUow men, whether merchants, farmers, pLinters,or men of overgi'own wealth. 56 ADDRESSES. same kind of relief which England, France, Russia, Prussia, Denmark, and Aastna, afFoird their subjects, and the, refusal of which is a manifest dereliction of duty. His representatives, act- ing on the maxims of Adam Smith, and disregarding the admo- nitory lessons of those mighty nations, meet him with a positive refusal ; and he sinks a victim of a policy long scouted out of all the wise nations of Europe, and which now only lingers in, and blights and blasts the happiness of, Spain and Portugal. Hun- dreds of useful citizens in every part of the union, with large fa- milies, mourn the ruinous consequences of our mistaken policy. The subject is too important not to warrant us in casting ano- ther slight glance at it. The united states are peculiarly fitted for the cotton manu- facture, being as we have already stated, capable of raising the raw material, in quantities commensurate with the demand of the whole world. And yet cotton goods of every description (except those below twentv-five cents per yard, which are dutied as at twenty-five cents) are freely admitted at the very ineffi- cient duty of twenty-seven and a half per cent, in consequence of which, great numbers of the most promising establishments have been destroyed. The raw material is transported across the Atlantic, 3000 miles, at sixteen to fifty cents per pouvd, and returned to us at the rate of from one dollar to five dollars — thus fostering the industry and the manufactures of Europe, and consigning our workmen to poverty and often to mendicity — ■ their employers to the long lists of bankrupts which are daily increasing in our towns and cities — and impoverishing the na- tion. On this system and its consequences we shall descant more at large on a future occasion. For the present we shall barely state tliat the policy of England during the dark ages of Edward III. and Henry IV. as sketched in our last number, was far superior to ours, with all our boasted illumination. At the close of the war, powerful and eloquent memorials were presented to Congress from the cotton manufacturers of Rhode Island, New Lond- 'n. New York, Baltimore, Philadelphia, Pittsburg, and various other parts of the United States, in which they besought the aid of government, in the most respect- ful terms. To narrow the range of objection, they bounded their requests generally to a prohibition of cotton manufactures, from the East Indies, except nankeens, and to such an increase of duties on those from other quarters, as would save the reye- nue from injury by the prohibition. The memorials were filled vfith predictions of the ruinous consequences that would result from the contrary policy. Their simple request, enforced by a most luminous train of reasoning, was unhappily rejected : and it is almost demonstrable, that to this rejection a large portion of the difficulties and embarrassments which at present over- ADDRESSES. 5T spread the face of the country may be ascril^ed. All the gloo- my predictions of the memorials have unfoi'tunately become his- tory. A consideration of the rejection of the first prayer of the memo- rials, which respects the prohibition of East India cottons, is cal- culated to excite an equal degree of regret and astonishment. The East India trade, daring the continuance of the wars in Europe, when we had markets there, and in some of the colonies of the belligerents, for the surplus of our importations from beyond the Cape of Good Hope, was possibly advantageous, or at least not injurious. But as at present carried on, it is highly pernicious, by the exhausting drain of specie it creates. On this strong ground, and moreover as the coarse fabrics from that quarter, as stated in the memorials, are made of inferior materials : and as we possess a boundless capacity of supply, every principle of sound policy, regard for the vital interests of their country, as well as the paramount claim on congress from so useful a body of citizens, for protection, ought to have insured compliance with the request. To all these considerations fatally no atten- tion was paid. Policy of Frederic IL of Prussia. From the view given of the policy of Russia, we invite atten- tion to that of Frederic il. His integrity and regard for the rights of his neighbours, no upright man will assert. But on his profound wisdom and sagacity as a statesman, the world is agreed. A dissenting voice is no where heard. On these points he would stand comparison with any monarch of ancient or mo- dern times, and rise paramount over ninety-nine out of a hundred. His system of political economy is therefore worthy of the most serious consideration^ and cannot fail to shed strong light on the important subject we are discussing. To the promotion of the industry of his subjects, he bestowed the most unremitting attention, well knowing that it was the most certain means of increasing the population of his dominions, and of course the wealth and happiness of his subjects, as well as his own power. From this grand and paramount object he was never for a moment diverted by his ambitious wars ; and notwithstanding the desolation they caused, he doubled the popu- lation of his paternal estates during his reign. To foster and protect arts and manufactures, he spared neither pains nor ex- pense ; " The king protects and encourages manufactures in every " possible manner^ especially by advancing large sums of money 8 58 A1>DRESS£S. " to assist them in carrying 07i their manufactures^ animating '■'■ them by rewards^ and establishing magazines of wool in all the '■'■ little toxvns^ for the benefit of the small -woollen manufactures T^ He was so completely successful, that he not only doubled and trebled the number of artists and manufacturers in those branch- es already established, but introduced a great variety, formerly not practised by his subjects; '' Before the commencement of this " reign, Prussia had but few silk mamfactures, and those of little '■^ importan e . But the present king has established and given *' liberal emouragement to so great a number^ that they employ " more than five thousand workmen ; and the annual value of " the goods manufactured by them is two millions of crowns,— " In the course of the last year 1,200,250 ells of silk stuffs have " been manufactured at Berlin, and 400,00(» of gauze. " The cotton manufacture alone employs nearly five thousand " workmen."* And thus, instead of being as formerly tributary to other nations, Prussia was enabled to export her manufactures to an immense extent to distant countries. " We are in possession of almost every possible kind of manu- *' factures ; and we can not only exclusively supply the Prus- *' sian dominions, but also furnish the remote countries of Spain '■'• and Italy xvith' linen and woollen cloths ; and our maniifactures *■'■ go even to China^ where some of our Silesia cloths are conveyed " . y the zvay of Russia. We export every year linen cloth, to *' the amount of six millions of crowns, and woollen cloths " and wool to the amount of four millions."! The measures he adopted for attaining these great ends, were worthy of the high character he enjoys as a statesman. He made large loans to needy artists and manufacturers, to enable them to establish their various branches of business. " If the king " has greatly increased population by his encouragement of agri- " culture, he has advanced it as much^ and perhaps more^ by the it grtat numbers cj manufactures and trades of all kinds .^xvhich he " has caused to be established.^ or to which he has given encolirage- *' ment at Berlin.^ at Potsdam^ and in almost every city and toivn " in his dominions ?''\ He purchased large quantities of raw ma- terials, and provided magazines, where they were sold at rea- sonable rates. He bestowed liberal rewards on artists and man- ufacturers, for excellence in their various branches, and moreo- ver exempted them in various places from military service. In a word, he devoted all the powers of his great mind, and made most liberal drafts on his treasury, for the accomplishment of this mighty object, which has attracted so small a share of atten- tion in this country, from those whose peculiar duty it was to promote its success. * Hertzberg's Discourses delivered at Berlin, 1786, p. 25. * Idem 26; f Idem 23. +Ibid. ADDRESSKS. 59 " It is with a view to encourage trade that the inhabitants of "Berlin and PotsdsLvn are exempled yrom military arrvice ; and *' his majesty grants nearly the same indulgence to the inhabit- *' ants of the circles of the mountains of Silesia, where the poor " but industrious and sober weavers, who are settled in a narrow *' and barren district, carry on thof>e JiouriHhing linen manujiic- ^'■tures xvhich produce ufi an exportation of so manij millions- ; and *' to the little city of Hirchberg- only^ a trade of txuo millions cf " croxvns annually. The king has in this district a canton for " his foot-guards ; but from his unwillingness to disturb the " population of the district, he seldom draws from hence any re- " cruits."* The calm and candid observer, who casts his eye on the sys- tem of Frederic, and contrasts it with that of the united states, cannot fail to feel the same degree of mortification and deep regret, which the contrast with that of Russia produced. He will be- hold, on one side, a grand, liberal, and magnanimous policy, dis- regarding expense in sowing prolific seed, which sprouted forth abundantly and repaid the cultivator ten-fold, nay, a hundred fold.f Loans, bounties, premiums, and impoi'tant immunities, as we have stated, were freely and liberally awarded. In the united states the seed was sown by individual exer- tion and enterprise. It required little care to foster and make it strike deep root. There was no demand of loans — bounties premiums — or immunities. All that was asked — all that was ne- cessary — was mere protection from foreign interference — a pro- tection which would have cost the government nothing, and would have enriched the nation. It was fatally withheld : and a large portion of the seed so plentifully sown and so promising * Idem, 25. f " As national industry forms the second basis of the felicity and power of a " state, I shall endeavour to prove here in a summary manner, that the Prussian « monarchy possesses it in an eminent degree ; and, perhaps, immediately after " Fi-ance, England, and Holland ; those powers which, for twocentui-ies, liave had •' the almost exclusive monopoly of manufactures,'of commerce, and of navig.ition ; •« of which the Prussians have had no part, but since the close of the last century, «.A . . . - 226,4 !7 144 38.337 Devon . . - 343.001 96 43.674 Gloucester, ~i including \- 250,809 141 36,904 Lincoln 208,557 58 18,845 Bristol -> Warwick - 208,190 160 30,200 Somerset . - - 278,750 106 33,979 >Ior''.ilk - - - 273.371 163 4H.707 Chester . - . 191.751 30 22.152 Sinfolk ■ - - 210.431 109 Sfi.llO Durham - - - 160,361 27 15,307 Sussex . . . 149,311 105 37,076 Cornwall - 188,269 45 li'.853 Wilts . . - - 185.107 75 42,128 Salop . . - . 167,639 79 17.306 Hampshire 219.656 147 32..S81 Worcester 139,330 51 18 896 Nottingham • - 141,350 74 9,80fj Northampton 131,757 42 20,534 Le eester - • - 130,081 47 19,154 Northumberland - 157,101 38 14,304 Derby - - - 161,142 39 13.16- Cumberland - - 117.230 18 8,445 Doiset . . . 115,31'. 38 15.78o Bucks . . - . 107,444 33 19.650 iierks - - - 109.215 6ii 22,088 Cambridge 89,346 40 11.294 Oxford - . - 109.6^0 38 21,025 Hereford - 89.191 31 11,779 Herts . . . . 97,577 43 153'l9 Monmouth 45.582 20 4,479 Bedford - • ^ 63,393 20 7,27S Westmoreland 41.617 e 4.615 Hiiiitiiisdon - 37.568 15 4,746 Rutl.>nd - - - 16,356 4 1,338 South Wales, North Wales ■ - tj (ounties - 288,761 50 23,384 6 counties, - 252,785 28 28,131 4.381,134 309. 586 764 1 4,491,846 1509 453,952 This writer furnishes another table, of the state of pauperism throughout England, which we also annex — Coun- Per cent, on the ties. population. 5. In Cumberland, Cornwall, Lancaster, Not- tingham, and East Riding of Yorkshire, the number of paupers in each 100 of the population - - - - - 7 (less than -j^) 3. In Derby, Middlesex, and Rutland - 8 (less than yV) 4, In Lincoln, Northumberland, Stafford, and North Riding of Yorkshire - - - 9 (above J,j.) 4 West Riding of York, Durham, Monmouth, and Salop, -- 10 - {^^^ 4 Bedford, Chester, Somerset and Westmore- land, 12 (under f) 9 Cambridge, Devon, Hereford, Huntingdon, Surry and Worcester, ------13 (above |) 3 Herts, Dorset and Kent, ----- 14 (under ^) 4 Gloucester, Leicester, Southampton, and Warwick 15 (above J) 2 Norfolk and Northampton, 16 (under J) 2 Essex and Suffolk, -------17 (above J) Colquhoun on Indigence, p. 272. ADDRESSES. 65 1 Buckinghamshire, - - 18 (above i) 1 Oxfordshire, 20 - (J.) 1 Berkshire, ---- 21 (above i) 2 Sussex and Wiltshire, 23 (nearly i) 12 Counties in Wales, averaging, - - - - 9 (above fj)* On the first of these tables he makes tlie following pointed and decisive remarks : " From this comparative statement," it appears, " that contrary ^^ to the generally received opinion^ the numhets oj' paupers in the ^^ counties xvhich are chiefly agricultural^ greatly exceed those. *■'■ Tvhere manufactures prevail!!! Thus in Kent and Surry, *' where the aggregate population is 576,687, there appear to be " 77^770 paupers ; while in Lancashire, where the population "is 672,731, the paupers relieved are only 46,200.|" He has not compared the two descriptions of the population on the subject of crimes. But the contrast in this respect, it appears, is equally mifavourable to the agricultural districts. — However, as manufactures are spread throughout the kingdom, and as all the counties partake to a certain degree of the double character of agriculture and manufactures, it is impossible to institute a general comparison. But it will answer every valua- ble purpose of testing the truth or falsehood of the prevailing- opinions, to take a view of six counties, three decidedly agricul- tural, and three as decidedly manufacturing. Mairuiactuiing counties. Popula- tion. Oftl-n- deis. Paupers. Agricult. counties. Popula- tion. OrtVn- ders. Paupers, Lancashire Yorkshire Stafford 672,731 858,892 239,153 371 245 91 46,0Ub 77,661 22,51.. Norfolk Kent Suny 273,371 307,624 269,043 163 210 199 42,707 41«632 36,138 1,770,776 707 146,171 850,038 572 120,477+ In the three manufacturing counties, there is only one offend- er for every 2500 people ; whereas, in the agricultural, there is one for 1600; whereby it appears that the latter districts have above fifty per cent, more criminals than the manufacturing, in proportion to their population. This is a strong and decisive fact. In the three manufacturing counties, the paupers are only eight per cent, of the population ; whereas, in the agricultural, they are about fourteen. We are tempted to cast a further glance on this table, and to call the attention to a more striking comparison. Yorkshire contains a greater population than the three specified agricultur- al counties, and yet has far below half the number of offenders, and not two-thirds of the number of paupers. ' Colquhoun on Indig-encf^, p. 265. f Idem, 273. h Idem, 272, 66 ADDRESSES. Population. Offenders. Paupers. Yorkshire, - - - 858,892 245 rr,661 Norfolk, Kent, and Surry, - 850,038 572 120,47/ This result may appear extraordinary and paradoxical. But a very slight reflection on the subject will remove the paradox, and enable us to account satisfact^'Hly for the existing state of things. Idleness is as much the parent of poverty and guilt, as industry is of independence and virtue. In agricultural districts there is a very large proportion of the labour of the women, and a still greater proportion of that of the young people wholly lost. The latter waste a great part of their early years in total idleness and in the contraction of bad habits. Hence arises a fruitful source of pauperism and guilt. These statements, independent of their overwhelming bearing on the present question, may have another very important ad- vantage. They serve to display, in strong colours, the danger of trusting to mere assertions, unsupported by facts. There is not in the whole range of political economy, a dogma that has been more universally received, or appeared more plausible than the one here combated, now unequivocally proved by tiie be^t authority in Europe, to be not only not true, but the very reverse of truth. II. Interference with Cotnmerce , Among the opponents of the manufacturing system, were for- merly great numbers of those citizens, engaged in commerce, who appeared impressed with an idea that in proportion as ma- nufactures are patronized and extended, in the same proportion commerce must be impaired. Hence a degree of jealousy has been fostered among the commercial, of the manufacturing class of our population, as if there were a great hostility between their respective interests. The most enlightened merchants at present are convinced of the errors of these views. It is not difficult to prove, that they rest on as sandy a foundation as the superior purity and freedom from pauperism of the agricultural dis- tricts. It will not, we trust, be denied, that in every community, in proportion to the variety of pursuits and employments, the field for exertion is extended, and the danger of rivalship, or of any of them being too much crowded, is diminished.. Hence an ob- vious consequence of the destruction of so many manufacturing establishments, as, during the war, were in ' the full tide of suc- cessful experiment,' has been to divert much of the capital and in- dustry "^gaged in them to commercial pursuits, whereby the lat- ter are so overstocked as to narrow or almost destroy all chance of success. The forlorn state of our wharves, our coffee houses, ADDRESSES. 67 and the numberless assignments in our newspapers, as well as the almost daily sheriffs' sales of property, fully prove that com- merce is overdone, and that it has unfortunately become a most precarious profession. Whereas, had manufactures been properly protected, commerce would be relieved from the superfluous portion of citizens who pursue it, and who, by the eagerness of their competition in the markets, domestic and foreign, destroy each others' chances of success. Another source of indemnification to commerce for any dis- advantage it might suffer from the patronage of manufactures, would be the trade in various kinds of raw materials imported from foreign countries, for the use of the manufacturers.* An important consideration remains. The diminution of our foreign trade, which is at all times precarious, and often ruinous, would be further compensated by the vast increase of the coast- ing trade, in the transportation of raw materials from the south- ern to the middle and eastern states, and of manufactured arti- cles from the latter to the former. We do not deem it necessary to enter into further detail, or to exhaust the subject. We trust enough has been said, to prove, that a liberal patronage extended to manufactures would be emi- nently beneficial even to the mercantile part of our citizens, not merely by reducing within reasonable bounds the extravagant number of competitors in that department, whereby so many engaged in it have been ruined ; but by affording profitable employ- ment to a portion of that capital which has escaped the destruc- tion arising from the ruinous state of our commerce since the war, and also by the general prosperity it would produce. This system, moreover, would afford commercial men opportunities of providing for a part of their children in a less hazardous line of business than commerce. III. High Wages. The high wages said to be given in this country have been used as a powerful argument against encouraging manufactures, and have led many of our citizens to believe that we would not l»e capable of manufacturing extensively for perhaps a century to come. This idea has maintained its ground against the strong and palpable fact, that many of our manufactures have thriven very considerably, notwithstanding the rivalship of foreign com- petitors. The difference, however, between the wages here and in England, in many branches of business, is far less than is * An intelligent citizen, who has carefully examined the entries into the poit ef Philadelphia, assures us, that the tonnage employed even now in the importa- tion of raw materials, leather, dye-wood, iron, lead', &c. &c. is equal to that em. ployed in the importation of bale goods. 68 ADDRESSES. generally supposed. But the argument falls to the ground^ when we reflect that in most of those branches dep^ nding whol- ly on manual labour, our manufacturers have met the rival arti- cles from Europe with great success. Our hatters, shoemakers, saddlers, coachmakers, printers, cabinet makers, type founders, curriers, glovers, smiths, and various other classes, wholly de- barred of the advantage of machinery, have maintained their ground far better than thbse citizens concerned in branches in which machinery is employed, of whom a large portion have been ruined ! This is a very extraordinary fact, and could not have enter- ed into any previous calculation. The endless variety of mill- seats throughout the United States, and the acknowledged ta- lents of our citizens in mechanical pursuits, would have led to form conclusions wholly different. It would have been believ- ed that whatever w^e might suffer in cases m which manual la- bour alone was employed, we should be triumphant wherever water power and machinery could be called into operation. IV. Vacant Lajids. Among the formidable objections against the protection of national industry in the form of manufactures, the extent of our vacant lands holds no mean place. Many members of con- gress, and others, when they hear of the decline of manufactures — the bankruptcy of the manufacturers — and the sufferings of the workmen, with great gravity advise the sufferers " to go bnck^^ and cultivate the soil in the wilderness, where there is an ample field for their industry. This is prescribed as a sovereign and infallible remedy for their evils, and has been a sort of shibboleth from the establishment of the government to the pre- sent hour. So much importance is attached to this idea, and its use is so general, we had almost said, so universal, that it requires to be dilated on at some length. We shall consider it under two points of view — I. Are manufacturers in general capable of cultivating vacant lands ? It requires but a moment's reflection to be satisfied, that the mass of persons engaged in manufactures are wholly unfit for agricultural employments ; more particularly for clearing and cultivating those vacant lands to which they are directed to re- sort, as a terrestrial paradise. A man who has spent the prime of his life in making watches, cabinet ware, hats, or shoes, or weaving cloth, would he nearly as much out of his element at agricultural la'.our as a farmer would be in a shoemaker's of hatter's workshop. ADDRESSES. 69 Moreover, a large portion, in many cases three fourths of the persons engaged in the cotton, woollen and other branches, are women and children, wholly unfit for farming. II. Suppose the thousands of manufacturers now out of em- ployment, and those who are likely, from the present stagnation of manufactures, trade, and commerce, to be discharged, were to apply themselves to agriculture, is there any chance of a mar- ket for the surplus of their productions ? This is a vital question, and demands the most serious and sober consideration. Its decision must affect the character of the past political economy of our governm.ent, and clearly de- monstrate the future course pointed out to this rising empire by sound political wisdom. It is palpable, that, so far from an increase of agriculturists being necessary in the interior of this state, and in the whole of the western states, they are too numerous for their own prosperity ; and hence agricultural productions are almost con- stantly a drug, and afford a verv slender remuneration for the labours of the field. Increase the number, and you increase the evil. Increase the number of manufacturers, you diminish it. In consequence of having an over proportion of our popula- tion engaged in agricultural pursuits, the foreign markets are almost constantly glutted with our staple articles, which are quently sold in the West Indies and Eui-ope at a lower rate than in our seaport towns. And hence the most ruinous losses are sustained by our merchants, of whom a large propor- tion are almost every year blotted from the map of the commer- cial world. When the cause, not of the manufacturers alone, as was er- roneously supposed, but of the whole nation, which was deeply involved in the question, was powerfully pleaded before congress, the southern planters were admonished to secure themselves a grand domestic market, independent on the caprice of foreign nations. The)' were prophetically warned of the ruinous con- sequences that must inevitably follow from the adoption of the contrary system. Trusting to a continuance of the very favour- able markets they then enjoyed, in which they could anticipate no change, the petitions and memorials were rejected. But the delusion is past and gone. The age of sober reflection has ar- rived. And we trust it is impossible for those whose votes pre- vented such adequate protection to the cotton manufactures as would have secured an unfailing and increasing home market, to reflect on those votes without the most heartfelt regret at the course they pursued, not merely as it has affected their own in- terests, but for the deleterious effects it has produced, and is likely to continue to produce on the welfare of the nation. To ADDRESSES. At the time those votes were given, which signed and sealed the destruction of a large portion of the cotton manufactures in the middle states, cotton was thirty cents per pound. U was not necessary for congress to have adopted the policy of Russia or France, which nations prohibit the importation of all cotton manufactures — nor that of Great Britain which imposes a duty of 85 per cent, on them. Had they barely prohibited the low priced articles, and laid an adequate protecting duty on all ot!;er descriptions, the price of cotton would probably have ne\ er been reduced. So large and so constantly increasing a portion of it would be consumed in this country, that it could not be mate- rially affected by the fluctuation of foreign markets. It now sells at sixteen or eighteen cents : and it is not easy to calculate how long it will remain at that rate. The value of the estates of the southern planters is thus reduced above one-third. Dearly, therefore, do they expiate their rejection of the earnest prayers of their feiiow citizens, who, as we have stated, were actually, as is now in full proof, pleading the cause of the whole nation, and at least as much that of the cotton planters as of any other portion of our citizens. The depreciation of the price of the two other great staples of the country, tobacco and flour, is at least as ruinous as that of cotton. ; The reduction of the value of estates is not confined to those of cotton planters. Real estate generally throughout the union, has suffered a vast depreciation. In many places it has fallen one-fourth — in others one-third, and in some even one-half. We do not pretend that the low tariff" pt oceeded solely from the southern planters. This would be contrary to the historical fact. Members from every state in the union, except three, voted for the existing rates. But of all the members from the five southern states, Maryland, Virginia, North Carolina, South Carolina, and Georgia, only five voted against the reduction of the duty on cotton goods to twenty-five per cent.^ To test more fully the correctness of the prevailing idea we here combat, we will suppose it carried generally into operation, and that a large portion of the persons at present employed in manufactures, had " gotie back^'' and were " cultivating our va- cant lands.'*'' The obvious consequence would be, that the quan- tity of the agricultural productions of the country, and our demands for manufactured goods from abroad, would both have been greatly increased. Of course the prices of the former would have been still more ruinously reduced, and the nation * In order to present a correct view of this interesting subject, we annex the yeas and nays on a motion made by Mr. Forsyth, on the 2d of April, 1816, to amend the report of the committee on the bill to reg'ulate the duties on imports,. ADDRESSES. 71 still more drained of its circulating medium. It does not require much skill to calculate what ruinous consequences such a sys- tem cf policy would have produced. Before we dismiss this part of our subject, we wish, fellow- citizens, to present it in another point of view. Suppose 10,000 agricultural citizens settled in the interior of any of the westeriT states, and acting on the maxim of Adam Smith, tbat is, " buying where they can purchase cheapest" — of course in Europe and in the East Indies, at a distance of from three to ten thousand miles, by striking' out thirty per cent, on cotton goods proposed by that committee, and substituting twenty-Jive. YEAS.— (For twenty-five per cent.) J\few-Hampshire. Kent Breckenridge King Atherton Lovett Goodwyn Love Cilley Root Hawes Pickens Hale Pennsylvania. Hungeiford Yancey Webster Burnside • Jewett South Carolina. Wilcox Hiester Johnson Chapel Voss Hopkinson Ken* Huger MassacJmsetts. Ross Lewis Lowndes Bvadbiuy Whiteside Lvon Middleton Nilson Delaware. M''Coy Taylor Pickering Clayton Nelson Woodward Reed Maryland. Noyes Georgia. Rug'g-les Archer Pleasants Cuthbert Tagjrart Baer Randolph Forsjth Ward Goldsborough Roane Hall Vermont. Hanson Sheffey Lumpkin Langdon Herbert Smith TJfair Connecticttt. Moore Tait Wildti Champion Pinkney J^orth Carolina. Kentucky. Law Smith Clarke Hardin Mosely Stuart Cidpepper M'Kee Stearns Wright Edwards Tennessee. Sturgis Virginia. Forney Henderson JVVry York. Barbour Gaston Thomas.— 81. Grosvenor Basset NAYS. Massachusetts. Bu-dsall Southard Marsh Baylies Brooks Pennsylvania. Newton Connor Comstock Crawford South Carolina. Hulbert Crocherou Dai'Ungton Calhoun Paris Gold Glasgow Mavrant Strong Savage Griffin Ohio. Wheaton Schenck Halm Alexander Connecticut. Throop Ingham Clendenin Davenport Townsend Irwin Creighton Pitkin Wendover Lyle Kentucky. Rhode Island, Ward Maclay Desha Boss Wilkin Milnor Johnson Mason Willoughby Piper M'Lcan Vermont. Yates Sergeant Sharpe Cliipman JVew Jersey. Wallace Taul J\'ew York. Baker Wilson Tennessee. Adgate Bateman Virginia. Powell Betts Bennet Jackson Reynolds.— 6G, I 2 ADDRESSES. subject to all the variety of charges incident to such a com- merce, and then transmitting their surplus productions three thousand miles, subject to similar charges ! what a state of de- pendence and poverty this policy is calculated to produce ! Yet it is to a certain extent the situation of a large portion of the in- terior of the united states. And hence the general depression, the stagnation of business, the drain of the circulating medium, and the consequent depreciation of their bank paper. Of this policy the state of Ohio has long been, and all the oth- er M^estern states are gradually becoming, melancholy victims. It can never be sufficiently regretted, that with a boundless ca- pacity of supplying themselves with nearly every thing they re- quire, a very large proportion of their clothing and other articles should be drawn from Europe, and that the produce of their in- dustry should depend for its value on the state of the markets in that quarter of the globe ! Let us exhibit a brighter picture, on. which the mind can dwell with delight ; a picture, which a correct tariff could not have fail- ed to produce, and which, we trust, the wisdom of congress will ere long produce. Let us suppose that these 10,000 citizens had linen, cotton, woollen, and leather manufactures adequate to their wants, m their immediate vicinity, and that instead of sending their flour and tobacco to New -Orleans and thence to Liverpool, the former at four or five dollars per barrel, and of course purchasing a coat with six or eight barrels, they had a market for it at home, and could purchase a coat for three or four barrels, an«il in the same proportion for other articles. The dif- ference between the two situations is exactly the same as be- tween affluence and penury — happiness and wretchedness. — What a contrast ! what a lesson does this superficial view fur- nish the legislature of the united states — and what a strong sentence of condemnation it pronounces on Adam Smith's theory ! V. Extortion during the War. This stands on nearly the same ground of error as the prece- ding objections. During that period, the wages of labour were high — the expenses of transportation of the raw materials, as well as the manufactured articles, very exorbitant — and those raw ma- terials were sold at high rates. All these circumstances com- bined to enhance the price of goods of every description. More- over, the heavy disbursements for the purchase of mill-seats and erecting machinery, required extraordinary profits — And finally the disorders and irregularities of a state of warfare, forbid men of sound minds from grounding any general inferences on the occurrences of such a period. ADDRESSES. 7o But suppose all the charges of this class were judicially prov- ed ; with what propriety, we boldly, but respectfully ask, could a planter who raised cotton for 10 a 12 cents, and for years sold it at 20 and 30, and who would without scruple have sold it at 75 or 100 — or a merchant whobuj s flour at six dollars, carries it to the West Indies, when the people are in a state of starvation, and there, taking advantage of their distress, sells at 20, 30, or 40 dollars — with what propriety, we say, can they reproach the manufacturer for having sold cloth which costhim 9 or lOdollars, at 12 or 14 ? The application of the parable of the beam and the mote, was not confined to the commencement of the Christian era. Its lessons are as necessan- now as they were 1800 years ago. On this point we once more refer to the luminous maxim of Alexander Hamilton, contained in our third number,| which is beyond the power of refutation, and which points out the proper course to be pursued, with the hand of a master. This maxim has received the strongest corroboration from the practical experience of the united states, which is within the knowledge of almost every individual in it. There is probably not a single article manufactured here which is not sold at a fair price. This can never fail to be the case, in a country where there is so much enterprize, so much capital, and so much in- dustry, at all times ready to be employed in any pursuit w^hich affords a reasonable prospect of remuneration, and likewise such a spirit of competition. In fact the rivalship is, in many cases, carried so far, that prices are reduced too low, and in conse- quence many of the competitors ruined. But facts speak louder than words. For years the nation has been led astray by groundless accusations of the extortions of manufacturers, which have been an unceasing source of de- clamation, and been regarded as an unanswerable argument against complying with the requests of this class of citizens. During this whole time the farmers and planters have been realizing the most exorbitant profits; amassing large and inde- pendent fortunes, and exhibiting a degree of prosperity rarely exceeded.* On the contrary nearly one-half of the " extortion- ate^'' manufacturers of cotton and woollen fabrics, victims of a pernicious policy, have been ruined, and a large portion of the remainder are barely able to struggle along in hopes of a change in the policy of the country ! t See supra page 45. * The losses resulting' from the excessive quantities of oiu- produce, with which foreign markets are so frequently overstocked, have hitherto scarcely touched the farmers or planters, who have almost universally sold their produce at high rates. The injury, as already stated, has fallen on the merchants. The farmers and planters, however, now begin to participate largely in the pernicious effects of this system, f 10 «^^ ADDRESSES; VI. Loss of Revenue. The solicitude to avoid impairing the revenue, by prohibiting the importation ot any merchandize, or by such higii protecting ducits as might operate to diminish importation, has been openly avowed in congress among the rea .ons for rejecting the prayers of the manufacturers for protection ! It is lamt ntabifc to think that in the enlightened nineteenth c.?: t'.'iy, it should i:e necessary to combat such a prejudice. Let us caiuly examine this o jection, and see on what ground It Cots. Let us suppose the annual amount of oar importations o. cotton fabrics, to l;e 15,000,000 of dollars; and that by ade- q ■•tie protection, they could be manufactured among ourselves,^ and this targe sum retained in the countiyj can it be admitted for a moment, that trc uuestion of manafacturing or importing fehould be decided } th.; operation on the fiscal concerns of the C' iuntry ? or that a go^crnment, whose paraixiount duty it is to pr.-t..' t the interests and to promote the prosperity of a nation, s > aid N.)r a moment prefer to have its wealth, to such an extent, diiintxi :j way for the benefit of a foreign country, merely because it could by such a wa ,ting policy draw a portion of the amount to the coff'rs of the state ? 1 hat is to say, in order to simplify the business, can it be reconcilable to sound policy, to send 15,0C 0,000 ol dollars to India and China, or elsewhere, to support the industry, the manufactures, and the agriculture of those countries, in.^tead of retaining it at borne for the advan- tage ol oiir own citizens, merely because the treasury could raise three or four milijons from the articles thus purchased ! What- Cicr plea tliere might be for this system in countries whose im- moderate debts, and enormous expenses require paramount attention to raising a large re\enue, it is wholly inapplicable in the united states, whose debts and expenses are comparatively liglit, and who;e means of discharging them are so abundant. Anv diminution of revenue, resulting from the imposition of the duties necessary to protect national industry would only affect the question of the duration of the debt itself ; that is, whether it should be paid off in a greater or less period of time ! It is, in a word, a question whether the nation shall pay off the debt, for instance, in ten, twelve, or fifteen years, and during that period feel the distress, embarrassment, and poverty which have never failed and never can fail to result from the neglect of pro- tecting national industry— or take twenty or twenty-five years to pay it off, and in the mean time enjoy the bounties, the blessings, the happiness which heaven has placed within its reach. We trust there never wUi be, certainly there never ought to be, any hesitation in future on the choice. ADDRESSES. ^S But we feel persuaded, that even confining our views to the mere secondary object of revenue, and utterly disregarding all higher concerns, the low tarifFhas been highly impolitic, as will appear manifest from the following consideration : It has encouraged extravagant importitions, for a few years, whereby the revenue has, it is true, gained in proportion as the country has been impoverished. But that in;poveri.shme)it, and the ruin that spreads far and tvJde, wist necessarilif produce a diminution offuttire importations proportioned to the past excess^ and has further produced the lamentable consequence of a diminu- tion of the power of paying taxes! ! The utter impolicy of depending almost wholly on the impost for a revenue, was so striking during the last war, and reduced the country tO such a deplorable state in point of resources and finances, that sound wisdom enters a most solemn protest against the continuance of such a system. It brought the united states to the verge of destrac tion. On the commencement of the war, when our utmost energies ought to have been called into imme- diate operation, the grand source of revenue was at once cut off, and invaluable time v/as wasted in preparing a substitute. 1 his must be the case in all future wars, from which the experience of all mankind forbids us to hope for an exemption. Whereas, if manufactures were duly protected, they would bear, and the manufacturers would cheerfully pay, moderate duties ; \vhi( h, in the time of war, might be enlarged as circumstances would require. England, the most commercial nation in the world, derives only one-fifth part of her revenues from customs. In 1793, her revenue was above sixty-three millions of pounds sterling, of which the customs yielded not quite twelve.* The customs of the united states for the years 1807 and 1808, were above thirty-two millions, or an average of sixteen ; where- as, in 1814, theij ivere not six millions! thus this source of re- venue, like a deceitful friend, deserted the nation completely in the hour of need ; and, like a deceitful friend, whose falsehood is fully proved, ought never to be implicitly relied on again. VII. Encouragement of Smuggling. The refusal of adequate duties for the protection of the ma- nufactures of the united states has been too generally defend-* ed, among other reasons, by the apprehension of affording en- couragement to smuggling. This plea will not stand scrutiny. It is a remarkable fact, that the duties are beyond comparison higher on a variety of articles, not at present, nor likely to be, raised or manufactured in this country, than on those which in- * Colquhoun on the Power and Resources of Great Britain, p. 268. 76 ADDRESSES. terfere with or destroy our national industry — So that this plea falls to the ground. In order to enable you, fellow citizens, to form a correct idea on this subject, and to appreciate the incorrectness of the plea, we annex a table of duties on sundry articles of both descrip- tions. place! Imperial tea, per lb - . - Hyson do. do. - - Souchong do. do. - - - Madeira wine, per gallon - - Sherry do. do. - - Cinnamon, per lb. ... - Cloves do, . . - Cotton fabrics, ( except those "> below 25 cents the square yard) 5 Woollen manufactures . . - On all articles manufactured of "^ bi-ass, steel, pewter, lead, or tin, brass wire, cutlery, pins, nee- v dies, buttons, earthenware, pot- tery, porcelain, china, &c. - Prices at the — !s of export. cents. 65 a 67 38 1-2 a 40 20 a 35 260 100 o 112 40 55o50 Specific Rate of duty duty. (K-r cent. cents. 50 80 28 70 a 80 25 70 a 125 100 40 60 55 a 60 25 60 25 50 a 52 27 1-2 271-2 22 It is painful to us to state, but regard to truth, and to the dearest interests of our country, oblige us to state that we doubt whether the tariff of any country has ever exhibited more impo- litic features than are to be seen in the above abstract. If the apprehension of encouraging smuggling by high duties had any influence in regulating the tariff, ought it not to have prevented the imposition of 80 per cent, on teas, 50 per cent, on wines, 60 per cent, on cinnamon, and 50 per cent, on cloves ? Is it not as easy to smuggle boxes of tea, as bales of cottons or woollens ? Would it not have been as safe to impose a duty of 80 per cent, on the latter as on the former ? The want of sufficient protec- tion of the national industry, which is so conspicuous through- out the tariff, cannot therefore for a moment be defended on the ground of the apprehension of promoting smuggling ^a plea which must be abandoned forever. The utterly inadequate duty on woollen goods sealed the condemnation and destruction of more than half the merino sheep in the country, which cost above one million of dollars to our citizens ; were beyond price ; and ought to have been cherished as ' the apple of the eye."* Had the cotton and woollen manufactures been protected by the lowest rate of duties on the seven first articles, in the above list, the united states would probably have saved 60,000,000 of dollars since the war, and would now exhibit a most enviable spectacle of prosperity. It rends the heart of every citizen pos- sessed of public spirit to behold the melancholy and appalling contrast that pervades the nation. ADDRESSES. 17 The united states possess a capacity of raising, and water power and mechanical skill to manufacture, cotton to an extent commensurate with the demand probably of the whole world, and our means of securing a constant supply of wool are amply adequate. It will not, therefore, admit of a doubt, that by proper encouragement, in a few years, this nation might have fully supplied itself with cotton and woollen manufactures to the utmost extent of its wants ; and yet, wonderful to tell, two-thirds of our cotton fabrics are brought from countries, from three to ten thousand miles distant — and one third of our woollens, three thousand. We wish it to be clearly and distinctly understood, that though these addresses appear to advocate exclusively the interests of the manufacturers, yet it is in appearance only. Our object is to promote the interests of the whole nation, on the most ex- tended scale. We scorn all partial views ; and are convinced, that were every manufacturer in the United States in a prosper- ous situation, still sound policy would require a radical revision of the tariff, in order to arrest the impoverishing drain of specie, resulting from an unfavourable balance of trade, and from the pernicious intercourse with India. The motive to our addresses is a clear and decided conviction, that this nation can never be great, happy, or respectable, while '- it buys more than it sells.,'' as it has done ever since the war ; Avhile its treasures are lavished at a distance of ten thousand miles, to purchase fabrics, with which it could abundantly supply itself ; while it exports raw materials at thirty cents a pound* and receives the articles, manu- • Two pieces of cambric, each containing twelve yards, weighed, the one two pounds one-eighth — tlie other, two pounds one-fourtli. The first is sold in this city at one dollar, and the other at sixty-two and a half cents per yard. And there are much finer and higher priced cambrics than either — some at a dollar and a quarter, and some at two dollars. Thus the cotton, which we sell raw from eighteen to fifty cents per pound, is returned to us, manufactured, at the rate of from two dollars to seven or eight — an advance of from six himdred to about eighteen hundred per cent ! We submit to the calm consideration of the reader, a calculation which cannot fail to astonish him. In 1816 we exported to Great Britain about fifty milhons of pounds of cotton, which, at thu-ty cents, amounted to §15,000,000 Suppose that we received only 7,500,000 of pounds manufactured into cambrics and muslins, at the low average of 33 cents per yard, equal to two dollars per lb. it would amount to - - 15,000,000 Being for 7,500,000 lbs. the full value of the whole raw material exported, exclusive of the surplus 42,500,000 of pounds of raw cotton, which at prime cost is ----- - 12,750,000 27,750,000 Thus lea^nngto Great Britain by this single transaction, a gain of 12,750,000 What an appalling vieTT of the policy of a nation, wliich has had the experi- 78 • ADDRESSES. factured of them at from one dollar to six or eight ; and while we suffer our machinery to go to ruin, consign our manufactu- rers to poverty, and furnish employment for the machinery and manufacturers of other countries. We shall conclude this address with a new view of this sub- ject which will appear paradoxical, but which, nevertheless, we hope will not be rejected without due consideration. We are strongly inclined to believe, that such additional pro- tection to the national industry, as would have considerably di- minished our importations, would not only have rescued this country from its present distress and embarrassment, and ensured it a higb degree of happiness and prosperity, but, extra- ordinary as it may appear, would have proved advantageous even to Great Britain. The value of a market depends not on the quantity of goods sold, but on the quantity paid for. And as the present paralysis of the national industry, and the impoverishment of the country, have chiefly arisen from our excessive importations and the want of adequate protection to our manufactures, by which many of them have received a severe, and some a deadly stroke ; and, moreover, as this impoverishment has reduced many of our im- porters to bankruptcy, and incapacitated a considerable propor- tion of the remainder from discharging their engagements at present ; whereby the merchants of Great Britain experience not only very great temporary disappointments and difficulties, but will ultimately suffer immense losses; it conclusively follows, that our impolitic tariff" has injured Great Britain as well as the united states. Its injurious operation has been moreover greatly aided by a system pursued in Great Britain, which deserves reprobation. That her policy, on the subject of manufactures, trade, and commerce, is generally very profound, is too obvious to require enforcement. Yet we are persuaded, that she has, in the case of this country, very much mistaken her true interest. That the united states were her best customer, is beyond doubt — and had the trade with us been conducted with care and caution, she would have derived vastly more benefit from it than she has done, or is ever likely to do. Our importers order as many goods as suit the consumption of the country, and in general rather a superabundance. Had the supplies for this market been confined to goods thus ordered, the importers might have prospered, and the debts to Great Bri- ence of all the world to griide its cai'eer ! Is it wonderful, after reflecting on this and so many analogous features of our intercourse with foreign countnes, that with advantages superior to those of any nation of ancient or modern times, we should be surrounded by embarrassments and difficulties, and that bankruptcy- should stare us in the face ! ADDRESSES. 70 tain been paid with tolerable punctuality. But it very frequent- ly liappens, that after an order is received from the united states, and filled, one, two, or three similar assortments are made up, shipped, consigned to an agent here, and sacrificed at vendue, at very reduced prices, on account of the exporter. — The market is thus immoderately glutted, the prices of goods greatly reduced, the fair trader deeply injured, and sometimes absolutely ruined, by those who receive his orders. Thus, independent of the heavy loss sustained by the sacrifice of the goods sent on consignment, immense losses arise from the failure of those whose prospects in business are destroyed by this overtrading. It is, therefore, not improbable, that the British merchants would receive nearly as large returns for two-thirds, perhaps for one half, of the goods they export to this country, as they do for the whole. By the policy at present pursued, they absolutely ruin their most valuable customers, and destroy their best mar- ket : and the recent accounts from England prove that many of them ruin themselves. The numerous bankruptcies in that country, it appears, are greatly owing to the failure of remittan- ces from hence. NO. vr. Philadelphia^ May 15, 1819. Memorial to the President of the U. S. urging an early call of Congress. View of the state oj the nation. Thk Society for the Promotion of National Industry, impres- sed with a belief that the calamitous situation of our agriculture, manufactures, trade and commerce — the unfavourable balance of trade — the exhausting drain of specie — and the reduction of the prices of real estate, and of the grand staples of our country, require the exercise of the wisdom of the legislature of the united states to apply an early and efficient remedy, hope it will not be regarded as an undue interference, that they venture to submit to the consideration of their fellow citizens throughout the union, the following form of a respectful application to the president, for an early call of congress. Should the measure be found necessary, it is of little consequence with whom it origin- ates : should the contrary opinion prevail, the motive cannot fail with all good men, to apologize for the suggestion. 80 ADDRESSES. 1o the President of the united states. Sir, — The subscribers, with all due respect, submit to your most serious consideration, the following reasons on which they venture to suggest the propriety of convening an extra session of congress. Our agricultural productions, the great staples of our country, on which we relied to pay for our enormous importations, and which, even at their highest rates, would have been inadequate for that purpose, are either excluded from foreign markets, or reduced in price from twenty-five to forty per cent, without any probability of a favourable change. Our markets are deluged with merchandize from foreign na- tions ; while thousands of our citizens, able and willing to work, and capable of furnishing similar articles, are unable to procure employment ; our manufacturing establishments are generally in a languishing condition, and many of them, m which immense sums have been invested, wholly abandoned, whereby their pro- prietors, who placed reliance on the protection of government, are ruined. Our commerce is almost equally prostrate, and the capital of the country, engaged in that useful branch, reduced, since the war, at least one-third, probably one-half. The balance of trade, in consequence of excessive importa- tions, has been, and continues, most ruinously against us, where- by, after having remitted an immense amovmt of our government and bank stock in payment, which subjects the nation to a heavy, permanent annual tax — we have been and are alarmingly drain- ed of our circulating medium, in consequence of which our mo- nied institutions are impoverished and crippled in their opera- tions ; agriculture, manufactures, trade, and commerce paralized: and all classes of our citizens more or less injuriously affected in their pursuits. Real estate has depreciated throughout the union from fifteen to thirty-five per cent. ; and in many cases fifty or sixty. The subscribers are impressed with a conviction, that for all these alarming evils there is no adequate remedy but a reduc- tion of the amount of our imports within that of our exports ; it being undeniably true, that nations, like individuals, which buy more than they sell^ or, in other words, expend beyond their income, must be reduced to bankruptcy. To depend on this salutary effect being produced by the res- toration of the spirit of economy which is to result from gene- ral distress, or from the forbearance of our merchants to import, is to allow a violent fever to rage in the body politic, and ex- haust itself, or the national strength, without the application of any remedy to arrest its destructive career. Even if our own merchants were to reduce their importations ADDRESSES. 81 within those bounds which our means of payment would require, this would afford no security : as our markets would probabl)- continue to be, as they have been, inundated with goods consign- ed by foreign merchants, which would perpetuate the calamitous situation into which our countiy is plunged. A radical remedy to the evil can only be applied by the le- gislature of the united states, in such a revision and regulation of the tariff, as shall reduce our importations, and effectually pro- tect national industry. In England, France, Germany, Russia and Prussia, and most other countries in Europe, national industry is adequately pro- tected by prohibitions and heavy duties ; whereas, while many of our agricultural productions, and almost all our manufactures, are excluded from nearly all the markets of the world ; ours are open to those of all other nations, under duties by no means af- fording sufficient protection ; a case probably without example in the annals of mankind. We therefore respectfully pray that you will be pleased to convene congress as early as circumstances may permit.* * NO. VII. Philadelphia^ May 20, 1819. Fallacy of the maxim that trade will regulate itself. Strong case supposed of France and Spain. Prosperous state of xvoollen vianufac lures in Portugal. Methuen treaty. Fatal consequences. Impoverishment of Portugal^ by the drain of her specie — its influx into Great BritaiJi. On almost every subject of discussion, fellow-citizens, there are certain hacknied phrases, which pass current as oracular, and, though extremely fallacious, are received with scarcely any investigation. There is probably no science that has been more distorted in this respect than that of political economy, on which so much of human happiness depends. We propose, in the present number, to consider a maxim of this description, fraught with destruction to any nation by which it is adopted ; but which is implicitly believed in by a large por- tion of our citizens, and has had considerable influence on the legislature of the union. This specious maxim is, that * [To this memorial no attention whatever was paid, except by a few printers of newspapei-s, who united in a clamour against it.] 11 82 ADDRESSES. " TRADE WILL REGULATE ITSELF," which, in all probability, led to that refusal of adequate protec- ti('U to the national industry, which has overspread the nation with dictress — lowered the price of some of our chief staples, by depriving them of a domestic market — bankrupted so many of our merchants and traders — deprived so many thousands of our citizens of emplovmeiit — and. in a word, reduced us Irom the moat towering prospects to a most calamitous reverse. It will be perceived that this is a \ ital part of Adam Smith s doctrine — indeed, the basis on which he has rained his great superstructure ; and that we have already animadverted on it incidentally. But its immense influence on the fate of nations^ ai-;d its most destructive tendency, demand a more minute in- vestigation, to which we now solicit your attention. How far its advocates deem it proper to have it carried, we are not quite certain. In its strict acceptation, it means a total exclusion of all regulations of commerce, so that the intercourse between nations should be as free as between different provinces of the same empire. In fact, if it does not mean this, it is diffi- cult to define what it can mean ; for if a government enacts any regulation whatever, it cannot with truth or justice be said, that " LrttJe rt_i(ii Idles iiHelfP We shall, therefore, consider it in its utmost latitude, as excluding all regulations. The result, how- ever, would not be materially affected by any modification, or restriction of its provisions, short of effectual protection of na- tional industry. These would, as the case might be, only accelerate or procrastinate the final catastrophe, to which it infal- libly leads. This maxim ought to have been consigned to oblivion centu- ries since, by the considerations, that no trading or commercial nation has ever prospered without " reguiathn of trade;''- that those nations which have devoted the most scrupulous attention to its regulation, have been the most prosperous ; and that in proportion as it has been neglected, exactly in the same propor- tion have nations gone to decay. The cases of England, France, Spain, and Portugal, offer powerful illustrations of these posi- tions. But we shall not rest satisfied with this mode of defence. We shall trace the operation of the maxim in its full extent. As it would be nugatory to suppose that the existing regula- tions of commerce could, by any convention, be annulled, and its entire freedom be universally established, we shall merely suppose it adopted only by a portion of the commercial world, and see what would be its effects on those nations wherein it was carried into operation ? To form an accurate idea on this or any other subject, the safest and best mode is to state the case on a small scale, which ADDRESSES. 83 the mind can readily embrace without distraction, and thence to argue on the widest range to which the su'-.ject extends. We will, therefore, here confine our view to two nations, France and Spain, and suppose that in the latter country the maxim we combat is carried into full operation, and that trade is allowed " to reinitiate itself'' — but that in the former, it is " regulated" by the government, for the protection and en- couragement of national industry, after the example of Great Britain, and indeed almost every other countiy in Christendom. In order to do the maxim justice, we will assume, that both nations are on a perfect equality in every other respect than the *' regulation of trade.'''' We will further assume that at the com- mencement of the rivalry between them, each nation possesses a circulating medium of 20,000,000 of dollars, and has 200,000 people employed in the cotton, and as many in the woollen manu- facture, who produce annually four millions of yards of each kind of goods, which are exactly adequate to their consum|;tion. To simplify the discussion, we confine ourselves to those two branches. But the reasoning will equally apply to every other species of manufactures. 4,000,000 yards of cotton goods, say a 50 cents ;S-%000,000 4,000,000 "ditto of woollen, a 6 dollars - - 24,000,000 26,000,000 On which they realize a profit of twelve and a half per cent. §3,250,000 To the French manufacturers, according to our hypothesis, the home market is secui-ed. All foreign competition is effectually cut off. They have, therefore, every encouragement to extend and improve their fabrics ; and in the first year of rivalship, having a surplus on hand, they export, we will suppose, 400,000 yards of each kind to Spain, and increase the exportation annu- ally an equal amount. This operation produces the treble effect of lowering the price of the Spanish goods by the competition ; circumscribing their sale ; and depriving, during the first year, about 40,000 people of employment. It being our determination to afford as little room for objec- tion, as possible, we will suppose the reduction of price to be only seven and a half per cent, which is far less than is usual in such cases.=* Let us see the situation of the parties at the end of the * Instances have recently occurred of domestic goods being- reduced at once, ten, fifteen, and twenty per cent, in our markets, hi consequence of great quan- tities of similar articles suddenly introduced from Europe. 84 ADDRESSES The French manufacturers gain in their domestic mar- ket, as before - - - And on 400,000 yards of each kind, sold in Spain, amounting to 2,600,000, at 5 per cent. - - - - First year .• jg Whereas, the Spanish manufacturers, whose sales are reduced to 3,600,000 3,250,000 yards of each kind, amounting to 23,400,000 dollars, gain at 5 per cent. only - - - - DoUai-s 1,170,000* 130,000 Dollars 3,380,000 This is the operation in the very first year, producing a dif- ference at once of about 2,210,000 dollars of actual profit against the infatuated nation, which allows " trade to regulate itself^'' and, according to Adam Smith, buys where " goods can be had the cheapest.'''' The second year commences with increased en- ergy on the part of the French, and dismay and discouragement on that of the Spanish manufacturers. The former double their exportations, and send 800,000 yards into the rival markets amounting to §5,200,000, of which we trace the operation. Second year. Whereas the sales of the Spaniards French profit, as before, on the home market - - 3,250,000 And on 800,000 yards of each kind sold in Spain, amount- ing to 5,200,000 dollars, at 5 per cent. 260,000 are reduced to 3,200,000 yards of each kind, amounting to 20,800,000 dollars, on which they gain at 5 per cent. g 1,040,000 ^3,510,000 Fi'ench profit, as before, on the home market - - They increase their expoila- tation to 1,200,000 yards of each kind, amounting to 7,800,00p dollars, at 5 per cent. - Third year. The Spaniards find their sales dimin- ,250,000 ished to 2,800,000 yards of each kind amounting to 18,200,000 dollars, whereon they realize a profit of 5 per cent. g910,000 390,000 §3,640,000 French profit at home, as before 3,250,000 They increase theii* expor- tation to 1,600,000 yards of each kind, amounting to 10,400,000 dollars, which, at 5 per cent, af- ford a gain of - - - Fourth year. The Spanish manufacturers are re- duced to 2,400,000 yai-ds of each kind, amounting to 15,600,000 dol- lars, on which, at 5 per cent, they gain §780,000 520,000 §3,770,000 * This view of the effect of the rivalry has, we apprehend, almost wholly es- caped the notice of our pohtical economists. When the prices of our manufac- tures are reduced in the home market by foreign competition, the reduction is on the -luhole we offer for sale. Whereas the reduction to the rival nation is only on such part of her's as she exports to us. The contest is therefore caiTied on at an immense inequality. ADDRESSES. 85 It is, we trust, needless to pursue the calculation any further. You can readily, fellow citizens, perceive that the contest must soon terminate. The Spanish manufacturers, oppressed, im- poverished, and dispirited, would be soon driven from the mai-- ket, which would be monopolized by the more sagacious ntition which, we repeat, had the good sense to '■'■regidatd traded Their immense gains would be at the expense, and to the destruction, of the nation, which was deluded by the specious ma.xim to " let trade regulate itself.'''* The successf d rivals would soon indem- nify themselves for the temporary reduction of price, by a pro- portionate advance in future. Let us compare the result of the four years operations on the two nations : — France Spain. First year's profit 3,380,000 First Year's profit 1,170,000 Second Year 3,510,000 Second Year 1,040,000 Tliird year 3,640,000 Third Year 910,000 Fourth year 3,770,000 Fourth Y'^ear 780,000 ^14,300,000 §3,900,000 Effect on the xvor king people.. France. Spain. Six hundred thousand people in- Foirr hundi'ed thousand people gra- dustriousl)- employed, supporting dually thrown idle ; — dragging on a themselves m comfort and happiness, wretched existence in mendicity; or and adding to the wealth and strength looking in vain for tiiose " collateral of the nation.* branches" which sound so hamioni- ously in Adam Smith, but which are not elsewhere to he found ; or emigi-a- ting to Fi-ance, to strengthen that na- tion at tlie expense of their own. We have hitherto confined our calculations of the effects of this plausible but destructive s\ stem, to the manufacturers alone. Its pernicious consequences, if they extended no farther than to this class of citizens, would be sufficient to induce liberal minded men — those worthy to legislate for this rising empire, to abandon the maxim. But those consequences, how deplorable soever, are but as " mere dust in the balance'''' compared with its general effects on the wealth, strength, resources, power, and happiness of any devoted nation which enlists itself under the banners of Adam Smith. •it is obvious that by the transfer of the manufactures from Spain to France, for every workman reduced to idleness in tlie former country, there woidd be one additional employed in the latter. We have, tliereforc, in the text assumed 600,000, as the average number in France. 86 ADDRESSES. In the first year France sells to Spain to the amount of g2,600,00© In the second 5,200,000 In the third 7,oOO,000 In the fourth 10,400,000 26,000,000 This is a debt which, in the first place, drains all the metallic medium, as far as the merchants can collect it ; and next all the evidences of public debt, or whatever valuable articles can be had. And still a heavy and oppressive debt is accruing from year to year afterwards ! The result is easily seen, A prosperous nation, with a spe- cie capital of ^20,000,000, is by this simple process in four years reduced to a most abject, impoverished, and dependent state. Its wealth is drained away to support a foreign rival. Every species of industry is paraiized. Ships rot at the wharves. Trade languishes. Merchants and traders, as well as manufac- turers, become bankrupts. Artisans, mechanics, and labouring people, who had largely contributed to the welfare of the state, are transformed into mendicants, or driven to desperate courses to prolong their existence ; and desolation extends itself over the face of the land. This, fellow citizens, is very nearly our present case. It is true, we have not absolutely let ' trade regiiiate itself^ by a total absence of all duties. The necessities of the treasury, which, by many members of congress, are freely admitted to be the leading, and by some to be the only object of a tariff,* forbade the adoption of the maxim in its fullest extent : and therefore our imported merchandize pays duty, But it is obvious that where the tariff of one nation is so wholly inefficient, that she can be completely undersold in her own markets by another, as the people of the united states are at present, the ultimate effect is actually the same, as if ' trade were allowed to regulate itself? The duties imposed by our tariff have merely delayed, not averted, the work of destruction. But that it is as sure in its operation, is placed beyond the reach of doubt by the desolation and ruin that pervade so many invaluable manufacturing estab- lishments throughout the union, on which millions of dollars have been expended, and whose fall, as we have so often re- peated, and must re-echo in the ears of those who alone have the * We have already stated that col. John Taylor, a popular writer in Virginia, has taken the broad ground, that every dollar imposed as duty on foreiga mer- chandize, is a dollar robbed out of the pockets of the agriculturists! This maxim, admirably calculated to excite the selfish passions of one class of citizens against another, has unfortunately had too many proselytes in and out of congi'css. ADDRESSES. 87 power of applying a remedy, involved the ruin of the citizens engaged in them. The most cursorv reader must perceive, and no one possessed of candour can deny, that we have given tiie advocates of the maxim, ' let trade regulate itaeljl^ far moi-e advantage in the ar- gument than was necessary, or proper. When we stated the reduction of price at seven and a half per cent, and a gradual increase of exportation from France to Spain, of only ten per cent, of the amount originally manufactured in each coun- try, V e did our cause manifest injustice. We might have as- sumed at once a redaction of price not of seven and a half per cent. — but of ten or more — and an exportation of double the amount, which, combined, would produce the imme- diate ruin of the Spanish manufacturers, of whose fabrics a large proportion would remain on hand, and the residue be sold at or below cost. — This is and has ever been the uniform operation of the sv stem of letting ' trade regulate itself? A physician who found his patient in a raging fever, and let the disorder take its course, or ' regulate itself^ would be de- servedly reprobated as unworthy of his profession. But his conduct would not be more irrational than that of a statesman, who saw the agriculture, manufactures, trade, and commerce of his country going to decay, and let them * regulate themselves,^ Government is instituted to guard the interests of the nation con- fided to its care : and, by whatever name it may be called, is no longer estimable than as it fulfils this sacred duty. It was pain- ful to us to state in a former address — it is equally painful to us to repeat — but we must repeat — the appalling truth, that our manufacturers, a large and important class, embracing some of the most valuable members of the community, must, with mixed sensations of regret and envy, regard the situation of the manu- facturers of England, Denmark, France, Russia, Austria, and most other countries in Europe, who enjoy that protection from their governments, which the former sought in vain from their fellow citizens and representatives, who are now themselves in- vohed in the general distress resulting from the want of that protection. We refer you, fellow citizens, to the plain, but impressive les- son afforded by the fable of the belly and the members. The latter starved the former to death — and perished victims of their own folly. We need not pursue it in detail. It is on the mind of almost every individual in the countiy, young and old. We cannot refrain from expressing our fears, that posterity will pro- nounce our policy to be a full exemplification of the soundness of its moral, and of our destitution of those broad and liberal views, that regard with * equal eye* all descriptions of society. 88 ADDRESSES. It will probably be objected by those whose interests or pre- judices enlist them in hostility to our views, that all we have here submitted to you, fellow citizens, is merely theory ; that however plausible, it cannot be relied on in the regulation of the political economy of a great nation ; that Adam Smith being the oracle of that science, no theory opposed to his should be receiv- ed, at least without the support of strong and well-established facts. Well, we meet them, and are fairly at issue, on this ground — and are willing to stand or fall as we furnish this support to our theory. We offer an historical case which exemplifies the baleful consequences of a system exactly similar to ours in its features and operation — which blighted and blasted the happi- ness of a prosperous nation — and which pronounces a strong sentence of condemnation on the theory of Adam Smith. In the year 1681, Portugal established the woollen manufac- ture on an extensive scale ; and, by absolute prohibitions, ex- cluded the woollen cloths of all other nations. — In consequence she enjoyed a high degree of prosperity for above twenty years, and had the balance of trade in her favour universally. Fatally for her, in 1703, the British minister, Mr. Methuen, induced her to enter into a treaty, called by his name, which stipulated that she should never prohibit British woollen manufactures, provided Port wines were admitted into Great Britain at two- thirds of the duty paid on those of France. The agriculturists of Portugal deluded themselves into the opinion, that they should derive a double benefit from this regulation ; that is, secure a market for their wines, and likewise buy their cloths at reduced prices ; in other words, according to the maxim of Adam Smith, buy them where ' they could be had the cheapest.^ But they were soon awakened out of this '■day dream.'' The flourishing manufacture was destroyed — the circulating medium of the countrj^ drained away — and the nation precipitated from the most flourishing state of prosperity to that pitiable situation of poverty and debasement which holds her up to other nations as a beacon to shun the rocks whereon she shipwrecked her re- sources and her happiness, and on which our political bark is at present striking with violence.* * These admonitory facts evince the unsoundness of the theory of Col. Tay- lor, as well as of many of the raembei's of congi'ess, his disciples and zealous pai'- tizans of his doctrines. Reg-ardless of the ruinous consequences to their fellow citizens who had embarked millions in manufactiu-ing estabhshments, they fondly persuaded themselves that by reducing tlie duties as low as possible, consistently with the necessity of providing a revenue, which we repeat, was their para- mount object, tlie}' were consulting the interests of the agriculturists, who would thereby be enabled to purcliase foreign merchandize at low prices, and whose produce they believed always so certain of finding an advantageous mai'ket and high prices in Europe, that they might disregard the home market ! Fatal de- ADDRESSES. 89 iThe important lesson held out by this case of Portugal — its close affinity to our situation — and the hope of its eradicating prejudices destructive to the strength, happiness, and indepen- dence of our country, induce us to give our authorities at full length. They are derived from two works of high character, " the British Merchant," written by a society of the most emi- nent merchants in England, in the reign of queen Anne ; and *' Anderson on the means of exciting a spirit of National In- dustry." " In the year 1681, one Courteen^ an Irishman, a servant in " the family of the then queen of England, afterwards queen " dowager, carried over several clothiers and bay-makers " into Portugal, where they presently set up the manufactures, " both of cloth and bays, particularly at Port Alegre and Covil- " han. " It was soon found that the staple of their wool was too short *' for bays ; therefore their bay-makers were dismissed. " But they proceeded in their manufacture of cloth ; and soon " brought it to such perfection, that in 1684, either in June or " July, upon the Conde cfEreicera's project to encrease their " exportations, and lessen the consumption of foreigii manufac- " tures, as well as to encourage their own, the king of Portugal *' made a sumptuary law to restrain several excesses in the " kingdom; and, among the rest, the importation of all foreign *' xvoollen cloths was prohibited. " Upon this the foreign merchants in th^t country made ** several remonstrances ; but could by no means obtain that the " prohibition should be set aside : yet they gained a year's time *' to bring in those that were on the way ; but were obliged to ** reship whatever should arrive after the time limited. " The Portuguese soon became so expert in the manufacture *' of woollen cloths, that they sent home our English clothiers in *' a distressed condition ; and the renegadoes were forced for " some time to beg their bread."* " The Portuguese went on successfully : their manufacture of " woollen cloths increased to that degree, that (^oM Portugal and " Brazil xvere wholly supplied from their ozvn fabrics : and the *' materials of this manufacture were of their oxvn and Spanish •' wool^ and na other, lusion ! Utter disregard of the sound systems and experience of all wise na- tions, and of the warning example of all unwise ones ! They are now broad awake from those deceptions ' day dreams.' Their flour, excluded from the Eiu-opean mai'kets, has fallen from thirty to forty per cent ; their cotton has suffered an equal depreciation ; and their tobacco is reduced 50 per cent. If liberality insures its. own reward, illiberal policy never fails to carry its own punishment. • British Merchant, vol. DT. p. 69. .12 90 ADDRESSES. *' To make ourselves some amends, and to evade the ill con- seqiences of this prohibition of our woollen cloths, we iDtro- duced into Portugal in their stead cloth-serges and cloth drug- gets ; against xvhnh their fabric of cloth ^ rvhich ivas then but in its infavcy^ would have been as unable to contend^ as against a ''free importation oj our woollen cloths. Therefore^ that their ' own chth might have no such thiiig as a rival in their own coun- ' i^/«/, they proceeded to prohibit foreign cloth-serges and cloth ' druggets.''"'^ " Mr. Methuen's treaty, (1703,) by taking off the prohibition ' of British cloths, and by providing, that neither these, nor any ' oi the British woollen manufactures in Portugal, should here- ' after be prohibited, was the immediate ruin of all the fabrics in ' that country. "-f " Our gain by the treaty, and so vast an enlargement of our ' exportations to Portugal, is, that we have saved vast sums of ' money, which otherwise might have gone out of the nation to '' pay our armies in Portugal and other countries ; and have '•greatly added to the treasure of the kingdom; that the balance ^ dfinually due from Portugal has subsisted great numbers oJ our '■people., employed in making manifactures to the value of the ' balance. " The product of the lands is a considerable part of every manu- '■facture; the balance therefore due frovx Portugal has paid great '• sums for the product oj our lands: and our rents are nothing ' else but the valpie paidjor the product of the lands ; and conse- ' quently all that part of the Portugal balance which has been paid ''for the product of the lands., is so much added to the rents of the ' kingdom. Tet this is not the whole prof t the landed interest ' has received from this balance. The people that have been sub- ' sisted by that great overbalance of manufactures might other- ' wise have come verv great numbers of them upon the parish j ' it is a gain to the landed interest to be saved from this charge. ' Our gain then by our Portugal treaty ^ and our excess of ex- *■ portations on that account., is a vast increase of the nntiori's ' treasure., the employment and subsistence of great numbers of ' 7nanufacturing people., an augmentation of our rents., and the ' saving the landed interest from the charge of maintaining such ' numbers of poor., as have subsisted themselves by the excess of '■exportations.-^ " The stipulation of the king of Portugal in this treaty, has '■ helped us to so prodigious a vent for our woollen manifactures ' in that country., as has abundantly made up the loss of that ' balance we heretofore received from Spain."$ * British Merchant, vol. iii. p. 71. f Idem, p. 76. t Idem, p. 254. § Idem, p. 38. ADDRESSES. 91 Previous to the Methuen treaty, Portugal coins were so rare in England, that they were ahnost regarded as medals. Whereas, after the treaty had gone into operation, there was an annual balance in favour of England, of one million sterlings or 4,444,000 dollars, equal to three millions at present. Portugal was drained, as the United States are jiow, first of her silver, and then of her gold, so that she had " very little left for her necefisary occasions.'''' This balance fully accounts for her impoverishment ; and at that period was an immense sum, as wall appear from the circum- stance that the whole of the balance of trade in favour of England with all the world was then only 2,000,000/. — and her whole exports scarcely 7,000,000/ * In consequence, the coins of Portugal flowed mto Great Britain so abundantly, that she was not only enabled to pay her armies abroad with them — but they formed a considerable portion of the circulating medium of the nation — and the chief part of the bullion melted and coined in her mint. " During the twenty years prohibition, the Portuguese succeed- " ed so well in their woollen manufactures, that xve brought " thence no gold or silver ; but after the taking o^ that prohibition " we brought away so much oj their silver., as to leave them very " little for their necessary occasions ; and then we began to bring *' away their gohV^f " From that treaty's taking place, the balance of trade began " to take place : and the year 1703, was the first year we began " to bring off the silver of that nation^^. *■'■ The intent of the ti-eaty was, to increase the consumption of " our woollen cloths in Portugal ; and has it not been increased " by means of this treaty ? had we any balance bejorefrom For- *' tugal^ and do we not now gain every year a million by that " treaty .^"§ " We never before the treaty, had any armies to pay in Portu- ** gal ; yet we brought none of their coin to our mint ; not such a '' thing as a Portugal piece was seen in England; or if it wa:., it *' was almost as great a curiosity as our mer/a/.v."|| " Our exports to Portugal since that treaty have amounted to " 1,300,000/. per annum, and perhaps to a much greater sum."^ " The payment of cur annies, the coinage in the mint^ the quan- " tities of Portugal coin still current rn the country., are so many *' demonstrations that we have exported vast quantities of wool- *' len manufactures, and otRer goods and merchandize to that " kingdom."** * British Merchant, vol. ii. p, 110. f Idem, vol. iii, p. 15. i Idem, vol. ii. p. 35. §Idem, vol. iii. p. o3. II Idem, vol. iii. p. 253. Ii Idem, 20. ** Idem, p. 257. 92 ADDRESSES. The analogy between the case of Portugal and that of the united states is strong and striking. The important woollen manufacture was es tablished and brought to such perfection in four years in the former country, as not only to supply its own consumption but that of its colonies. In the course of three or four years it was completely destroyed. " Thus did Portugal, by the spirited exertion of one able min- " ister, (the Conde cfEreicera^ gain in a few years a perfect *' knowledge in a principal branch of the woollen manufacture ; *' which they might have possessed, to the infinite emolument of *' the poor subjects of his Faithful Majesty till this hour, had not *' the nation^ by the death oj that patriotic nobleman^ lost her best *' counsellor ^ and been overreached by the more able British minis- *' ter^ Mr. MethuenT^ *' Thus in four years did their -woollen manufactures attain to *' such perfection^ as to enable them to dispense with foreign cloths *' entirely.''''] It may perhaps, be supposed that the total destruction of this flourishing manufacture, could not have taken place so rapidly unless the English woollen fabrics were admitted duty free. — This would be an egregious error. The stipulation of the Me- thuen treat)^ was, that they should not be prohibited, nor be subject to a higher duty than before the prohibition had taken place ; that is, twenty -three per cent, which, like so many of the duties in the united states.^ zvas found utterly inadequate to pre- serve the manufacture from destruction. '' The duties of importation, before the prohibitions, had the *' name of twenty-three per cent. But the goods were undervalu- *' ed ; those duties of twenty-three per cent., were not above tzvelve *■'• per cent. oJ their real value. To such low duties has the king " of Portugal obliged himself with respect to the several sorts *' of woollen manufactures, which stood before prohibited in "that country.":}; We invite your attention, fellow-citizens, to the striking simi- larity between the case of Portugal, as stated above, and that of the united states. In this country, the woollen manufacture and that of cotton rose to maturity during the two years and a half of warfare : and had the war continued two or three years naore, or had those manufactures received adequate protection after the peace, they would probably have attained to such ma- turity, and taken such deep root, as to defy foreign competition. But the four years of peace have crushed a large portion of both descriptions. One of the most eminent merchants in Baltimore writes us — " I am sorry to say, that our cotton manufactures are " likely to fall through, unless more effectually protected — En- c Anderson on National Industry, page 267, f British Merchant. \ ^ildem, voi. iij. pag^eSr. ADDRESSES. 93 '* gljsh cotton goods have been selling at about half the cost and *' charges. Under such circumstances it is impossible for home " manufactures to stand the competition." A merchant in New York likewise writes — " The manufacturers (of cotton particu- " larly) will require all the aid they can get from congress next *' session to sustain themselves. The enormous imports of for- " eign goods have so affected the price, that the cost cannot be " obtained." The preceding view of the enviable state of prosperity, and the rapid and lamentable downfall of Portugal, demands the most pointed attention of every friend of the prosperity of this coun- try. It is like the hand-writing on the wall — the " mene tekel upharsin^'' — the warning to flee the road that is leading us to a similar state. Let these facts be carefully compared with the theory laid down in the commencement of this address, and they will afford the most irresistible proof of its soundness, as well as of the utter impolicy that has prevailed in the regulation of our tariff, which has done this country more injury in four years of peace, than she suffered in both htr wars. At the close of the last, she commenced her career under as favourable auspices as any nation in the world — A high character at home and abroad — her merchants wealthy and prosperous — her manufactures flourishing — her people all employed — her staples of immense value. What a deplorable contrast she exhibits at present! Who can reflect on it without agony ! Her character impaired b)'^ the impracticability of her citizens paying their debts abroad — her merchants, one after another, daily swallowed up in bank- ruptcy — her manufactures prostrate — thousands and tens of thou- sands of her people unemployed — her staples sunk in value, pro- bably more than 20,000,000 dollars per annum — and bo pros- pect of relief at hand. If Adam Smith's work consisted of twenty volumes instead of two — and if the commentaries on it had extended to two hundred, were the whole thrown into one scale, and the single case of Portugal thrown into the other, the former would kick the beam. We conjure you, fellow citzens, by your regard for our com- mon country — by the duty you owe yourselves, your wives and your children — by the memory of your Washington, Franklin, Hancock, and Adams — by the desire you must feel to arrest the progress of the depreciation of the grand staples of your agri- culture, as well as the destruction of your manufactures, trade and commerce — all victims of a pernicious policy — by the claim posterity has on you to make a good use of the immense advan- tages you possess — by that liberty on which you justly pride your- selves, but which loses its value, if accompanied by beggary and ruin — in a word, by all you hold near or dear on earth — weigh ■well the subject of this address. Examine it in all its bearings 84 ADDRESSES. and aspects. And should it satisfactorily establish, as we trust it will, the danger of the course you are pursuing, arouse from the lethargy in which you are enthralled — and, as congress alone has the power of applying a remedy, memorialize your repre- sentatives to change their system— to follow the maxims of all the wise nations of ancient and modern times — to remove, as far as possible, the distresses of the nation — and to save from the vortex of bankruptcy those who have escaped the ravages of the storm which threatens to blast all our hopes of happiness, and to reduce us to the same state of prostration and decrepi- tude as Spain and Portugal, who, it is unfortunately true, have not made a worse use of the bounties of heaven than the united states ! The immense importance of the case of Portugal, induces us to place before the eyes of our fellow citizens two compari- sons of her conduct with ours — in the one, the soundness of her policy places us in the back ground an entire century in point of political wisdom — in the other, her impolicy and her conse- quent sufferings and distress are the counterpart of the system we have pursued, and the calamities under which we writhe. Striking contrast. PORTUGAL THE UNITED STATES " The Portug'uese set up a fabric of Prohibit nothing whatever — and af- " their own, and proceeded in it with ford utterly inadequate protection to the " very good success, after the prohibi- great and leading manufactures of cot- « tion of ours and all foreign coloured tons, woollens, and iron, lest ' the many « cloth. ' We had then nothing left shotdd be taxed for the benefit of tlie " against their cloths, but to introduce fevi ! ! !' and in order to ' buy ivhere " our cloth serges and cloth di'nggets goods can be had cheapest ! ! !' "into tliat country. They quickly " found tliat these gave some inteiTup- *' tion to their manufactures, and there- *' fore iliey proceeded also to proMbit " foreign serges and dniggets."* Striking likeness. PORTUGAL. THE UNITED STATES. " Before the treaty, om* woollen During the war, cotton, woollen, and " cloths, cloth serges, and cloth drug- other kinds of goods, were not, it is " gets were prohibited in Portugal, true, prohibited, lliere were, howev- " They had set up fabrics there for er, very few imported. The citizens of "making cloth, and proceeded with the United States set up fabrics for "very good success: and we might making cloth, both woollen and cotton ; "justly apprehend they would have and, had the war continued, or had they " gone on to erect other fabrics, till at received protection after it was conclu- " last they had served themselves with ded, they would have gone on to erect " every species of woollen manulac- other fabrics, tiU they had served them- « tures. The treaty takes off all pro- selves with every species of manufac- " liibitions, and obliges Portugal to ad- ture. The treaty of peace opened our " mit forever all oiu" woollen manufac- ports to foreign merchandize, under * British Merchant, vol. iii. p. 35. ADDRESSES, 95 " tures. TJieir ownfabncs by tJds were "presently ruined. And we exported «' 100,000/. value in the single article of «* cloths, the very year after the trea- « ty."* <' The court -was pestered luith remon- " strances from their manufacturers ivhen " the prohibition was taken off^ pursuant "to Mr. Meihuen's treaty. But the " thing was past. The treaty -was rati- "fied.-and THEIR LOOMS WERE « ALL R UIJVED. And yet there was " no tendency to a revolt, although so " many people were deprived of their "employment in that country by ta- *< king off the proliibition."-|- " The balance was so very great, that " notwithstanding we paid subsidies to " the king of Portugal, and paid for " troops, (there were also vast sums for " supplies of oui' armies in Valencia and "Catalonia,) yet still tlie overbalance *' lay so much against them, that tliere " was ten, twelve, and fifteen per cent. " difference between the exchange and " the intrinsic value of the money;''t duties utterly inadequate for protection, whereby a large portion of our fabrics ■were -wholly ruined — and, probably with- in a year after the war §30,000,000 of cottons and woollens were imported in- to tliis countiy. Congress was most respectfully en- treated for adequate protection, by the manufacturers, when the war was closed. It was refused : and the dis- tress and ruin of the manufacturers and the impoverishment of the nation fol- lowed. The balance of trade is so great, that notwithstanding we have shipped im- mense quantities of produce at high prices — and remitted probably from gl5,000,000 to 20,000,000 of govern- ment and bank stock, we are still hea- vily in debt, and unable to pay. The following picture of the state of the western country, taken from the Frankfort Argus, evinces the insanity of not making some prompt and decisive effort to relieve the nation from its disastrous situation. *' Never within the recollection of our oldest citizens has the aspect of times, as respects property and money, been so alarming. Already has propert)'^ been sacrificed in considerable quantities, in this and the neighbouring counties, for less than half its value. We have but little money in circulation, and that little is daily diminishing by the universal calls of the banks. Neither lands, negroes, nor any other article can be sold for half their value in cash ; while executions, to the amount of many hundred thousand dollars, are hanging over the heads of our citizens. What can be done? In a few months no debt can be paid, no money will be in circulation to answer the ordinary purposes of human life. Warrants, writs, and execu- tions will be more abundant than bank notes : and the country will present a scene of scuffling for the poor remnants of indi- vidual fortunes, which the world has not witnessed." * Britisli merchant, vol. iii. p. 253. f Idem, p. 75. \ Idem, p. 91 . 96f ADDRESSES. jso.viir. Philadelphia, May 2/, 1819. Synopsis. Grand Jury Presentment. When we first ventured, fellow citizens, to call your attention %o the subject of political economy, we were influenced to adopt that measure, by the calamitous situation of our affairs, public and private. Agriculture had received a deep wound by the reduction of the prices of its staple articles from twenty to forty per cent. — real estate was reduced in the same proportion — na- vigation and commerce were languishing — manufactures were prostrated by an inordinate influx of foreign commodities, cal- culated to excite a spirit of luxury and extravagance in our citi- zens — the narrow, illiberal, and selfish maxims, '- to buy zuhere goods could be had the cheapest^ and' not to tax the many for the benefit of the few 1^ had produced a system whereby the wealth of our nation was converted into a means of fostering and en- couraging the industry of a distant hemisphere, and supportiii ; in other words, whether they will continue to lead their country on " the road to ruin," under the banners of Adam Smith, or take the road to true independence under those of Al- exander Hamilton. Light and darkness are not more opposite to each other, than Adam Smith and Alexander Hamilton on this point of political economy, so essential to insure " the wealth ofnatioJis.'''' On the decision of this great question, depend the future des- tinies, not only of this country, but of a large portion of man- kind, whose fortunes cannot fail to be deeply affected by the result of our experiment of free government. We, therefore, solemnly invoke the aid and co-operation of the wise and the good of every section of the union in the discussion of this all- important topic. Extracts from the Report of Alexander Hamilton^ Esquire^ Secret tary of the Treasury^ Dec. 5, 1791. " The expediency of encouraging manufactures in the united " states, which was, not long since, deemed very questionable, " appears at this time to be pretty generally admitted. The " embarrassments, which have obstructed the progress of our " external trade, have led to serious reflections on the necessity " of enlarging the sphere of our domestic commerce : the restric- " tive regulations.^ zvhich in foreign markets abridge the vent of " the increasing surplus of our agricultural produce., serve to beget *' an earnest desire.^ that a more extensive demand for that surplus '■'■ may be created at home. And the complete success which has " rewarded manufacturing enterprise, in some valuable branches, " conspiring with the promising symptoms which attend some " less mature essays m others, justify a hope, that the obstacles " to the growth of this species of industry, are less formidable " than they were apprehended to be ; and that it is not difficult to " find in its further extension, a full indemnification for any ex- " ternal disadvantages, which are, or may be experienced, as " well as an accession of resources favourable to national inde- " pendence and safety. y- " There still are, nevertheless, respectable patrons of opinions, " unfriendly to the encouragement of manufactures. The fol- " lowing are, substantially, the arguments by which these opinions " are defended : " In every country," say those who entertain them, " agricul- " ture is the most beneficial and productive object of human " industry. This position, generally, if not universally true, " applies with peculiar emphasis to the united states, on account ADDRESSES. 101 " of their immense tracts of fertile territoiy, uninhabited and " unimproved. Nothing can afford so advantageous an employ- " ment for capital and labour, as the conversion of this exten- " sive wilderness into cultivated farms. Nothing equally with ^' this, can contribute to the population, strength, and real riches " of the country. " To endeavour, by the extraordinary patronage of govern- " ment, to accelerate the growth of manufactures, is, in fact, to " endeavour, by force and art, to transfer the natural current of " industry, from a more.to a less beneficial channel. Whatever " has such a tendency must necessarily be unwise : indeed it *' can hardlv ever be wise in a government, to attempt to give a *' direction to the industry of its citizens. This, under the " quick-sighted guidance of private interest, will, if left to itself, *' infallibly find its own way to the most profitable employment ; *' and it is by such employment, that the public prosperity will " be most effectually promoted. To leave industry to itself, " therefore, is in almost every case, the soundest as well as the " simplest policy. " This policy is not only recommended to the united states, " by considerations which affect all nations ; it is, in a manner, " dictated to them by the imperious force of a very peculiar *' situation. The smallness of their population, compared with " their territory — the constant allurements to emigration from " the settled to the unsettled parts of the country — the facility " with which the less independent condition of an artisan can be *' exchanged for the more independent condition of a farmer — *' these, and similar causes, conspire to produce, and, for a length " of time, must continue to occasion, a scarcity of hands tor *' manufacturing occupation, and dearness of labour, generally. " To these disadvantages for the prosecution of manufactures, a " deficiency of pecuniary capital being added, the prospect of a " successful competition with the manufacturers of Europe, " must be regarded as little less than desperate. Extensive " manufactures can only be the offspring of a redundant, at least " of a full population.' Till the latter shall characterize the " situation of this country, 'tis vain to hope for the former. " If, contrary to the natural course of things, an unseasonable " and premature spring can be given to certain fabrics, by heavy "duties, prohibitions, bounties, or by other forced expedients; " this will be only to sacrifice the interests of the community to " those of particular classes. Besides the misdirection of labour, *' a virtual monopoly will be given to the persons employed on " such fabrics ; and an enhancement of price, the inevitable con- " sequence of every monopoly, must be defrayed at the expense " of the other parts of the society. It is far preferable, that " those persons should be engaged in the cultivation of the 102 ADDRESSES. " earth ; and that we should procure, in exchange for its produc- " tions, the commodities, with which foreigners are able to sup- " ply us in greater perfection, and upon better terms." '' This mode of reasoning is founded upon facts and princi- " pies, which have certainly respectable pretensions. If it had " governed the conduct of nations, more generally than it has " done, there is room to suppose, that it might have carried " them faster to prosperity and greatness, than they have attained " by the pursuit of maxims too widelv opposite. Most general " theories, however, admit of numerous exceptions ; and there " are few, if any, of the political kind, which do not blend a con- " siderable portion of error with the truths they inculcate. " In order to an accurate judgment, how far that, which has " has been just stated, ought to be deemed liable to a similar " imputation, it is necessary to advert carefully to the considera- ^' tions which plead in favour of manufactures, and which appear " to recommend the special and positive encouragement of them, " in certain cases, and under certain reasonable limitations. " It ought readily to be conceded, that the cultivation of the " earth, as the primary and most certain source of national sup- " ply — as the immediate and chief source of subsistence to man " — as the principal source of those materials which constitute " the nutriment of other kinds of labour — as including a state " most favourable to the freedom and independence of the hu- " man mind — one, perhaps, most conducive to the multiplication " of the human species — ^has intrinsically a strong claim to pre- " eminence over every other kind of industry. " But, that it has a title to any thing like an exclusive predi- " lection, in any country, ought to be admitted with great cau- " tion. That it is even more productive than every other branch " of industry, requires more evidence than has yet been given in " support of the position. That its real interests, precious and " important as, without the help of exaggeration, they truly are, **■ will be advanced^ rather than injured bij the due encouragejnent " of manufactures^ '"^J/i ^t^^ belh-ved^ he satisfactorily demonstra- " ted. And it is also believed, that the expediency of such en- " couragement, in a general view, may be shown to be recom- " mended by the most cogent and persuasive motives of national " policy. " It has been maintained, that agriculture is not only the " most productive, but the only productive species of industry. " The reality of this suggestion, in either respect, has, however, " not been verified by any accurate detail of facts and calcula- " tions ; and the general arguments, which are adduced to prove " it, are rather su!;tile and paradoxical, than solid or convincing. '■'• Those, which maintain its exclusive productiveness, are to " this effect : ADDRESSES. 103 " Labour, bestowed upon the cultivation of land, produces *■' enough, not only to replace all the necessary expenses incurred " in the business, and to maintain the persons who are employed '' in it, but to afford, together with the ordinary profit on the " stock or t apital of the farmer, a net surplus, or rent for the *' iaiidlord or proprietor of the soil. But the labour of artificers *' does nothing more than replace the stock which employs them, " or which furnishes materials, tools, and wages, and yield the " ordinary- profit upon that stock. It yields nothing equivalent " to the rent of land. Neither does it add any thing to the total " value of the whole annual produce of the land and labour of " the country. The additional value given to those parts of the *' produce of land, which are wrought into manufactures, is *' counterbalanced by the \alue of those other parts of that pro- *' duce, which are consumed by the manufacturers. It can " therefore only be bv saving or parsimony, not by the positive '' productiveness of their labour, that the classes of artificers can " in any degree augment the revenue of the society." " To this it has been answered, 1 . " That inasmuch as it is acknowledged, that manufacturing " labour reproduces a value equal to that which is expended or *' consumed in carrying it on, and continues in existence the ori- " ginal stock or capital employed, it ought, on that account alone, *' to escape being considered as wholly unproductive ; that " though it should be admitted, as alleged, that the consumption " of the produce of the soil, by the classes of artificers or manu- " facturers, is exactly equal to the value added by their labour *' to the materials upon which it is exerted ; yet it would not *' thence follow, that it added nothing to the revenue of the so- *' ciety, or to the aggregate value of the annual produce of its " land and labour. If the consumption, for any given period, " amounted to a given sum, and the increased value of the pro- " duce manufactured, in the same period, to a like sum, the total " amount of the consumption and production during that period, " would be equal to the two sums, and consequently double the " value of the agricultural produce consumed. And though the " increment of value, produced by the classes of artificers, should " at no time exceed the value of the produce of the land consu- *' med by them, yet there would be at every moment, in conse- " quence of their labour, a greater value of goods in the market, " than would exist independent of it. 2. " That the position, that artificers can augment the reve- " nue of a society, only by parsimony, is true in no other sense, " than in one which is equally applicable to husbandmen or cul- " tivators. It may be alike affirmed of all these classes, that " the fund acquired by their labour, and destined for their sup- ■' port, is not, in an ordinary way, more than equal to it. And 104« ADDRESSES. " hence it will follow, that augmentations of the wealth or capi- " till of the community (except in the instances of some extra- " ordinary dexterity or skill,) can only proceed, with respect to " any of them, from the savings of the more thrifty and parsimo- " nious. 3, " That the annual produce of the land and labour of a " country can only be increased, in two ways, by some improve- *' ment in the productive powers of the useful labour, which ac- *' tually exists within it, or by some increase in the quantity of *' such labour ; that with regard to the first, the labour of arti- *' ficers being capable of greater subdivision and simplicity of *' operation, than that of cultivators, it is susceptible, in a pro- " portionably greater degree, of improvement in its productive " powers, whether to be derived from an accession of skill, or '* from the application of ingenious machinery ; in which parti- *' cular, therefore, the labour employed in the culture of land " can pretend to no advantage over that engaged in manufactures : " that with regard to an augmentation of the quantity of useful " labour, this, excluding adventitious circumstances, must de- *' pend essentially upon an increase of capital,which again must de- *' pend upon the savings made out of the revenues of those who *' furnish or manage that, which is at any time employed, whether " in agriculture, or in manufactures, or in any other way." *' it is now proper to enumerate the principal circumstances, *' from which it may be inferred — that manufacturing eatablish- *' ments not only occasion a positive augmentation of the produce " and revenue of the society, but that they contribute essentially " to rendering them greater than they could possibly be, without *' such establishments. These circumstances are, 1. *' The division of labour. 2. " An extension of the use of machinery. 3. " Additional employment to classes of the community not " ordinarily engaged in the business. 4. " The promoting of emigration from foreign countries. 5. " The furnishing greater scope for the diversity of talents " and dispositions which discriminate men from each other. 6. " The affording a more ample and various field for enter- " prise. 7. " The creating, in some instances, a new, and securing, in *' all, a more certain and steady demand for the surplus produce " of the soil. *' Each of these circumstances has a considerable influence " upon the total mass of industrious effort in a community : to- " gether, they add to it a degree of energy and effect, which are " not easily conceived. Some comments upon each of them, in " the order in which they have been stated, may serve to explain " their importance. ADDRESSES. 105 I. " As to the division of labour. " It has been jiistlv observed, that there is scarcely anything *' of greater moment in th.e economy of a nation, than the pro- *' per division of lal;our. The separation of occupations cau"-cs " each to be carried to a much greater p«_rte< lion thafo it ct uid " possibly acquire, if they were blended. Tiiis arises principal- " ly from three circumstances : — ist. " The greater skill and dexterity naturally resulting from " a constant and undivided application to a single object. It is *■*■ evident that these properties must increase, in proportion to " the separation and simplification of objects and the steadiness " of the attention devoted to each ; and must be less, in propor- *' tion to the complication of objects, and the number among *' which the attention is distracted. 2d. " The economy of time, bv avoiding the loss of it, inci- " dent to a frequent transition from one operation to another, of *' a different nature. This depends on various circum; tances ; *' the transition itself — the orderly disposition of the implements, *' machines, and materials employed in the operation to be reiin- " quished — the preparatory steps to the commencement of a new *' one — the interruption of the impulse, which the mind of the " workman acquires, from being engaged in a particular opera- " tion — the distractions, hesitations, and reluctances, which at- *' tend the passage from one kind of business to another. 3d. " An extension of the use of machinery. A man occupi- " ed on a single object, will have it more in his power, and will *' be more naturally led to exert his imagination in devising " methods to facilitate and abridge labour, tlian if he were per- " plexed by a variety of independent and dissimilar operations. " Besides this, the fabrication of machines, in numerous instan- *' ces, becoming itself a distinct trade, the artist, who follows it, " has all the advantages which have been enumerated, for im- " provementin this particular art ; .and in both ways the inven- " tion and application of machinery are extended. " And from these causes united, the mere separation of the ••' occupation of the cultivator, from that of the artificer, has the " effect of augmenting the productive powers of labour, and with " them, the total mass of the produce of revenue in a country. — " In this view of the subject, therefore, the utility of artificers " or manufacturers, towards promoting an increase of productive " industry, is apparent. II. " As to an extension of the use of machinerj', a point " which, though partly anticipated, requires to be placed in one " or two additional lights. " The employment of machinery forms an item of great im- "portance in the general mass of national industry. 'Tis an ar- " tificial force brought in aid of tlie natural force of man ; and to 14 106 ADDRESSES. *' all the purposes of labour, is an increase of hands ; an acces- *' sion of strength, unincumbered too by the expense of main- " taining the laboiu-er. May it not therefore be fairly inferred *' that those occupations which give greater scope to the use of *' this auxiliary, contribute most to the general stock of industri- *' ous effort, and, in consequence, to the general product of in- " dustry ? " It shall be taken for granted, and the truth of the position *' referred to observation, that manufacturing pursuits are sus- " ceptible in a greater degree of the application of machinery, " than those of agriculture. If so, all the difference is lost to a " community, which, instead of manufacturing for itself, pro- " cures the fabrics requisite to its supply from other countries. " The sub.stitiition of foreign for do77icsttc manufactures is a trans- ^'■fer to foreign nationft of the advantages accruing from the em~ *-^ ploijment of machinery in the modes in xvhich it is capable of " being employed^ xvith most iitilitij and to the greatest extent. " The cotton-mill invented in England, within the last twenty " years, is a signal illustration of the general proposition, which " has been j ust advanced. In consequence of it, all the different " processes for spinning cotton are performed by means of ma- " chines, which are put in motion by water, and attended chiefly " by Tvomen and children ; and by a smaller number of persons *' in the whole, than are requisite in the ordinary mode of spin- *' ning. And it is an advantage of great moment, that the oper- *' ations of the mill continue with convenience, during the night, " as well as through the day. The prodigious effect of such a " machine is easilv conceived. To this invention is to be attrib- " uted essentially the immense progress, whiclji has been so sud- " denly made in Great Britain, in the various fabrics of cotton. III. " As to the additional employment of classes of the com- " munity, not originally engaged in the particular business. " This is not among the least valuable of the means by which " manufacturing institutions contribute to augment the general "stock of industry and production. In places where those in- " stitutions prevail, besides the persons regularly engaged in " them, they afford occasional and extra employment to industri- *' ous individuals and families, who are willing to devote the lei- " sure resulting from the intermissions of their ordinary pursuits *' to collateral labours, as a resource for multiplying their ac- " quisitions or their enjoyments. The husbandman himself ex- '■'■ periences a new source of prof t and support from the increased *' industry of his wife and daughters ; invited and stimulated,by " the demands of the neighbouring 7nanufactories. "Besides this advantage of occasional employment to classes '.' having different occupations, there is another of a nature allied " to it, and of a similar tendency. This is, the employment of ADDRESSES. 107 *' persons who would otherwise be idle, (and, in many cases, a *' burden on the community) either from the bias of temper, hab- *' it, infirmity of body, or some other cause, indisposing or dis- *' qualifying them for the toils of the countrj^ It is worthy of *' particular remark, that, in general, women and children are " rendered more useful, and the latter more earh useful, by ' manufacturing establishments, than they would otherwise be. " Of the number of persons employed in the cotton manufacto- *' ries of Great Britain, it is computed xh.2itfour-sevent'is ne rly ^'' nre ivomen and children; of -whom the greatest proportion are '■'■ children^ and many of them o a tender age. " And thus it appears to be one of the attributes of manufac- " tures, and one of no small consequence, to give occasion to the *' exertion of a greater quantity of industry, even bv the same •* number of persons, where they happen to prevail, than would *' exist, if there were no such establishments. IV. " As to the promoting of emigration from foreign coun- *' tries. " Men reluctantly quit one course of occupation and liveli- " hood for another, unless invited to it by ven^'^ apparent and *' proximate advantages. Manv who would go from one coun- " try to another, if they had a prospect of continuing with more " benefit, the callings to which they have been educated, w^ill not " often be tempted to change their situation by the hope ot doing " better in some other way. Manufacturers, who (listening to "■ the powerful invitation of a better price for their fabrics, or " for their labour ; of greater cheapness of provisions and raw " materials ; of an exemption from the chief part of the taxes, " burdens and restraints, which they endure in the old world ; '' of greater personal independence and consequence, under the " operation of a more equal government ; and of, what is far more " precious than mere religious toleration, a perfect equality of " religious privileges) would probably flock from Europe to the " united states to pursue their trades, or professions, if they '■'• wei-e once made sensible of the advantages they would enjoy, " and were inspired with an assurance of encouragement and "employment; will with difficulty, be induced to transplant " themselves, with a view of becoming cultivators of land. *' If it be true, then, that it is the interest of the united states " to open every possible avenue to emigration from abroad, it *' affords a weighty argument for the encouragement of manu- *' factures ; which, for the reason just assigned, will have the " strongest tendency to multiply the inducements to it. " Here is perceived an important resource, not only for ex- " tending the population, and with it the useful and productive " labour of the country, but likewise for the prosecution ot manu- " factures, without deducting from the number of hands which 108 ADDRESSES. *' might otherwise be drawn to tillage ; and even for the in- " demrdfic ition of agricultare for such as might happen to be " div ert( d froin it. Many, whom manufacturing views would " indue e to emigrate, wouM afterwards yield to the temi'tations, " which the particular situation of this country holds out to ag- " ricultural pursuits. And while agriculture would in other " respecti derive many signal and unmingled advantages, from " the growth of manufactures, it is a problem, whether it would " gam or lose, as to the article of the number of persons em- *' ployed in carrying it on. V, " As to the furnishing greater scope for the diversity of " talents and dispositions, which discriminate men from each *' otiutr. " This is a much more powerful mean of augmenting the fund ^' of national industry than may at first sight appear. It is a just " obs.: rvation, that miuds, of the strongest and most active pow- " ers for their proper object-^, fall below mediocrity, and labour " without effect, if confined to uncongenial pursuits. And it is " thence to be inferred, that the result of human exertion may " be immensely increased by diversifying its objects. When. " all the different kinds of industry obtain in a community, each " iadi' idaal can find his proper element, and call into activity " the whole vigour of his nature. And the community is bene- " fited by the services of its respective members, in the manner, " in which each can serve it with most effect. " If there be any thing in a remark often to be met with, " namely, that there is, in the genius of the people of this coun- " try, a peculiar aptitude for mechanical improvements, it would " operate as a forcible reason for giving opportunities to the " exercise of that species of talent, by the propagation of manu- " factures. VI. " As to the affording a more ample and various field for "enterprise. " Tiiis also is of greater consequence in the general scale of " national exertion, than might perhaps on a superficial view be " supposed, and has effects not altogether dissimilar from those " of the circumstance last noticed. To cherish and stimulate " the activity of the human mind by multiplying the objects of " enterj.rise, is not among the least considerable of the expedi- " ents, by which the \vealth of a nation may be promoted. Even " things, in themselves not positively advantageous, sometimes " become so, by their tendency to provoke exertion. Every " new scene which is opened to the busy nature of man to rouse " and exert itself, is the addition of a new energy to the general <•' stock of effort. " The spirit of enterprise, useful and prolific as it is, must ** ]5iecessarily be contracted or expanded in proportion to the sim- ADDRESSES. 109 " plicity or variety of the occupations and productions which " are to be found in a society. It must be less in a nation of " mere cuiti' ators, than in a nation of cultivators and merchants; " less in a nation of cultivators and merchants, than in a nation " of cultivators, artificers and merchants. VII. " As to the creating, in son.e instances, a new, and se- " curing in all a more certain and steady demand for the surplus "• produce of the soil. " This is among the most important of the circumstances which *' hiive been mdicated. It is a principal mean, by which the es- " taMishment of manufactures contributes to an augmentation " of the produce or revenue of a country, and has an immediate " and direct relation to the prosperity of agriculture. *' It is evidert, that the exertions of the husbandman will be " steadv or fluctuating, vigorous or feeble, in proportion to the " steadiness or fluctuation, adequateness. or inadequateness of " the markets on which he must d.pend. for the vent of the sur- " plus, which may be produced by his labour ; and that such sur- " plus, in the ordinary course of things, will be greater or less " in the same proportion, *"• For the purpose of this vent, a domestic market is greatly to " be preferred to a foreign one; because it is, in the nature of " things, far more to be relied on. " It is a primary object of the policy of nations, to be able to '' supply themselves with subsistence from .their own soils ; and *' manufacturing nations, as far as circumstances permit, endea- *' vour to procure from the same source, the raw materials ne- *• cessary for their own fabrics. This disposition, urged by the " spirit of monopoly, is sometimes even carried to an injudi- *' cious extreme. It seems not always to be recollected, that *' nations which have neither mines nor manufactures, can only " obtain the manufactured articles of which they stand in need, " by an exchange of the products of their soils ; and that if " those who can best furnish them with such articles, are unwil- " ling to give a due course to this exchange, they must of neces- " sity make every possible effort to manufacture for themselves ; " the effect of which is, that the manufacturing nations abridge *' the natural advantages of their situation through an unwilling- *' ness to permit the agricultural countries to enjoy the advantages *' oj theirs ; and sacrifice the interest of a mutually beneficial in- " tercourse to the vain project of selling every thing and buy- " ing nothing. " But it is also a consequence of the policy, which has been " noted, that the foreign demand for the products of agricultural " countries, is in a great degree rather casual a7id occasional^ than " certain or constant. To what extent injurious interruptions of " the demand for some of the staple commodities' of the united 110 . ADDRESSES. " States, may have been experienced, from that cause, must be " referred to the judgment of those who are engaged in carry- *' ing on the commerce of the country: but it may be safely af- " firmed, that such interruptions are at times very inconvenient- *' ly felt ; and that cases not unfrequently occur, in which mar- *' kets are so confined and restricted, as to render the demand *' very unequal to the supply. " Independently likewise of the artificial impediments, which *' are created by the policy in question, there are natural cau- " ses tending to render the external demand for the surplus of ti agricultural nation^ a precarious reliance. The differences of " seasons in the countries which are the consumers, make im- " mense differences in the produce of their own soils, in differ- " ent years, and consequently in the degrees of their necessity *' for foreign supply. Plentiful harvests with them, especially " if similar ones occur at the same time in the countries which " are the furnishers, occasion of course a glut in the markets of " the latter. " Considering how fast and how much the progress of new " settlements in the united states must increase the surplus pro- " duce of the soil, and weighing seriously the tendency of the " system, which prevails among most of the commercial nations " of Europe, whatever dependence may be placed on the force *' of natural circumstances to counteract the effects of an artifi- *' cial polic}'^ ; there appear strong reasons to regard the foreign '' demand for that surplus., as too uncertain a reliance, and to de- *' sire a substitute for it in an extensive domestic market. '* To secure such a market, there is no other expedient., than to " promote manufacturing establishments . Manufacturers, who con- " stitute the most numerous class, after the cultivators of land, " are for that reason the principal consumers of the surplus of " their labour. " This idea of an extensive domestic market for the surplus pro • " duce of the soil, is of the first consequence. It is, of all things, " that which most effectually conduces to a flourishing state of " agriculture. If the effect of manufactories should be to de- " tach a portion of the hands, which would otherwise be engag- '^ ed in tillage, it might possibly cause a smaller quantity of " lands to be under cultivation ; but by their tendency to pro- " cure a more certain demand for the surplus produce of the *' soil, they would, at the same time, cause the lands, which were *' in cultivation, to be better improved and more productive. " And while, by their influence, the condition of each individual " farmer would be meliorated, the total mass of agricultural " production would probably be increased. For this must evi- " dently depend as much, if not more, upon the degree of im- " provement, than upon the number of acres under culture. ADDRESSES. Ill " It merits particular observation, that the multiplication of " matiufoctories not only Jurnislies a market for those articles *' -iihich have been accustomed to he produced in abundance^ in a *' country , but it likewise ct-eates a demand for such as were either " unknoxvn or produced in inco?isiderahle quantities. The bow- " els, as well the surface of the earth, are ransacked for articles " which were before neglected. Animals, plants, and minerals " acquire a utility and value, which were before unexplored. *' The foregoing considerations seem sufficient to establish, as " general propositions, that it is the interest of nations to diver- *' sify the industrious pursuits of the individuals who compose " them — that the establishment oj manufactures is calculated not *' o?dy to increase the general stock of useful and productive la- *' hour^ but even to improve the state of agricidture in particular^ " certainly to advance the interests of those who are engaged in *' it. There are other views, that will be hereafter taken of the *' subject, which, it is conceived, will serve to confirm these in- " ferences. 1. "- If the system of perfect liberty to industry and commerce '' were the prevailing system of nations, the arguments which " dissuade a country' in the predicament of the united states, " from the zealous pursuit of manufactures, would doubtless *' have great force. It will not be affirmed, that they might not *' be permitted, with few exceptions, to serve as a rule of na- " tional conduct. In such a state of things, each country would *' have the full benefit of its peculiar advantages to compensate " for its deficiencies or disadvantages. If one nation were in a *' condition to supply manufactured articles on better terms than " another, that other might find an abundant indemnification in *' a superior capacity to furnish the produce of the soil. And " a free exchange, mutually beneficial, of the commodities which *•• each was able to supply, on the best terms, might be carried *' on between them, supporting in full vigour the industry of each. " And though the circumstances which have been mentioned, " and others which will be unfolded hereafter, render it proba- " ble, that nations merely agricultural, would not enjoy the same " degree of opulence, in proportion to their numbers, as those " which united manufactures with agriculture ; yet the progres- " sive improvement of the lands of the former, might, in the " end, atone for an inferior degree of opulence in the meantime; " and in a case in which opposite considerations are prett\- " equally balanced, the option ought perhaps always to be in fa- " vour of leaving industry to its own direction. But the sys- " tern, which has been mentioned, is far from characterising the " general policy of nations. The prevalent one has been re- " gulated by an opposite spirit. The consequence of it is, that " the united states are ts a certain extcnty in the situation of a 112 ADDRESSES. *' country precluded from foreign commerce. They can, indeed, " without difficulty, obtain from abroad the manufactured sup- *' plies, of which they are in want ; but they experience mime- *' rous and very injurioui impediments to the emission and vent *' of their own commodities. Nor is this the case in reference " to a single foreign nation only. The regulations of several *' countries, with which we have the most extensive intercoui'se, " throw serious obstructions in the way of the principal staples *' of the united states. In such a position of things^ the united *' states cannot exchange with Europe on equal terms ; and the *' rvant of reciprocity would render them the victim of a system^ *' xvhich should induce them to confine their views to agriculture, *' and refrain from mannfactures. A constant and increasing *' necessity, on their part, for the commodities of Europe, and *' only a partial and occasional demand for their own, in return, *' could not but expose them to a state of impoverishment, com- " pared with the opulence to which their political and natural " advantages authorize them to aspire. Remarks of this kind " are not made in the spirit of complaint. It is for the nations, " whose regulations are alluded to, to judge for themselves, *' whether, by aiming at too much, they do not lose more than *' they gain. It is for the united states to consider by what " means they can render themselves least dependent, on thecom- *' binations, right or wrong, of foreign policy. It is no small " consolation that already the measures which have embarrass- " ed our trade, have accelerated internal improvements, which " upon the whole have bettered our affairs. " To diversify and extend these improvements, is the surest " and safest method of indemnifying ourselves for any inconve- *' niences, which those or similar measures have a tendency to " beget. If Europe zvill not take from us the products of our soil, " upon terms consistent 7vith our interest, the natural remedy is *' to contract as fast as possible^ our xvants of her. 2. " The conversion of their waste into cultivated lands, is " certainly a point of great moment in the political calculations " of the united states. But the degree in which this may pos- *' sibly be retarded by the encouragement^of manufactories, does " not appear to countervail the powerful inducements to afford- " ing that encouragement. " An observation made in another place, is of a nature to " have great influence upon this question — If it cannot be de- " nied, that the interests even of agriculture may be advanced, " more by having such of the lands of a state as are occupied, " under good cultivation, than by having a greater quantity oc- " cupied under a much inferior cultivation ; and if manufacto- " ries, for the reasons assigned, must be admitted to have a ten- " dency to promote a more steady and vigorous cultivation of ADDRESSES. 113 *' the lands occupied, than would happen without them, it will " follow, that they are capable of indemnifying a country for a '* diminution of the progress of new settlements ; and may serve " to increase both the capital value and the income of its lands, " even though they should abridge the number of acres under " tillage. But it does by no means follow, that the progress of " new settlements would be retarded by the extension of manu- " factures. The desire of being an independent proprietor of " land, is founded on such strong principles in the human breast, *' that where the opportunity of becoming so is as great as it is *•■ in the united states, the proportion will be small of those, " whose situations would otherwise lead to it, who would be di- "■ verted from it towards manufactures. And it is highly proba- " ble, as already intimated, that the accession of foreigners, who, " originally drawn over by manufacturing views, would after- " wards abandon them for agricultural, would be more than an " equivalent for those of our citizens, who might happen to be " detached from them. "• The remaining objections to a particular encouragement of *' manufactures in the united states, now require to be examined. *' One of these turns on the proposition, that industry, if left " to itself, will naturally find its way to the most useful and " profitable employment. Whence it is inferred, that manufac- *' tures, without the aid of government, will grow up as soon, *' and as fast, as the natural state of things, and the interest of *' the community, may require. " Against the solidity of this hypothesis, in the full latitude " of the terms, very cogent reasoning may be offered. These *' have relation to the strong influence of habit, and the spirit of *' imitation ; the fear of want of success in untried enterprises ; *' the intrinsic difficulties incident to first essays towards a com- " petition with those who have previously attained to perfection. *' in the business to be attempted ; the bounties, premiums, and *' other artificial encouragements, with which foreign nations " second the exertions of their citizens, in the branches in which " they are to be rivalled. " Experience teaches, that men are often so much governed *' by what they are accustomed to see and practise, that the sim- *' plest and most obvious improvements, in the most ordinary " occupations, are adopted with hesitation, reluctance, and by *' slow gradations. The superiority antecedently enjoyed by " nations, who have pre-occupied and perfected a branch of in- " dustry, constitutes a more formidable obstacle, than either of " those which have been mentioned, to the introduction ot the " same branch into a country, in which it did not before exist. " To maintain between the recent establishments of one country ^ " and the long-matured establishments of another country ^ a com- 15 ^14 ADDRESSES. '• petition upon equal tenns^ both an to quality and price^ is in * most cases impracticable. The disparity, in the one., or in the ' other, or in both, must necessarily be so considerable as to ' forbid a successful rivalship, rvithout the extraordinary ai4 and ' protection of government. '*" But the greatest obstacle of all to the successful prosecution ' of a new branch of industry in a country in which it was be- ' fore unknown, consists, as far as the instances apply, in the ' bounties, premiums, and other aids, which are granted in a * variety of cases, by the nations in which the establishments to ' be imitated are previously introduced. It is well known, that * certain nations gi-ant bounties on tlie exportation of particular ' commodities, to enable their own workmen to undersell and ' supplant all competitors, in the countries to which those com- ' modities are sent. Hence the undertakers of a new manufacture ' have to contend^ not only with the natural disadvantages, of a ' nexv undertaking ; but tvith the gratuities and remunerations ' which other gover7iments bestow. To be enabled to contend ' with success., it is evident., that the interference and aid of their ' government are indispensable. Combinations by those engaged ' in a particular branch of business in one country, to frustrate ' the first efforts to introduce it in another, by temporary sacri- ' fices, recompensed perhaps by extraordinary indemnifications ' of the government of such country, are believed to have existed, * and are not to be regarded as destitute of probability. The ' existence or assurance of aid from the government of the ' country, in which the business is to be introduced, may be es- ' sential to fortify adventurers against the dread of such combi- ' nations — to defeat their effects, if formed — and to prevent their ' being formed, by demonstrating that they must in the end * prove fruitless. Whatever room there may be for an expecta- ' tion that the industry of a people, under the direction of pri- ' vate interest, will, upon equal terms, find out the most bene- ' ficial employment for itself; there is none for a reliance, that ' it will struggle against the force of unequal terms, or will of ' itself surmount all the adventitious barriers to a successful ' competition, which may have been erected either by the ad- ' vantages naturally acquired from practice and previous posses- ' sion of the ground, or by those which may have sprung from ' positive regulations, and an artificial policy. This general re- ' flection might alone suffice as an answer to the objection under ' examination ; exclusively of the weighty considerations which * have been particularly urged." '' To all the arguments which are brought to evince the im- ' practicability of success in manufacturing establishments in the ADDRESSES. 115 ♦* united states, it might have been a sufficient answer to have " referred to the experience of what has been already done : it " is certain that several important branches have grown up and " flourished with a rapidity which surprises ; affording an en- " couraging assurance of success in future attempts ; of these it " may not be improper to enumerate the most considerable-— " I. Of Skins. Vanned and tawed leather ; dressed skins, " shoes, boots and slippers, harness and saddlery of all kinds, " portmanteaus and trunks, leather breeches, gloves, muffs and ** tippets, parchment and glue. *' II. Of Iron. Bar and sheet iron, steel, nail rods and nails, " implements of husbandry, stoves, pots and other household " utensils, the steel and iron work of carriages, and for ship " building ; anchors, scale beams, and weights, and various " tools of artificers ; arms of different kinds ; though the manu- " facture of these last has of late diminished for want of demand. " HI. Of Wood. Ships, cabinet wares and turnery, wool and " cotton cards, and other machinery for manufactures and hus- " bandry, mathematical instruments, coopers' wares of every " kind. " " IV. Of Flax and Hemp. Cables, sail-cloth, cordage, twine " and packthread. " V. Bricks and coarse tiles, and potters' wares. " VI. Ardent spirits, and malt liquors. " VII. Writing and printing paper, sheathing and wrapping " paper, pasteboards, fullers' or press papers, paper hangings. " VIII. Hats of fur and wool, and of mixtures of both, " Women's stuff and silk shoes. " IX. Refined sugars. " X. Oils of animals and seeds, soap, spermaceti and tallow " candles. " XI. Copper and brass wares, particularly utensils for dis- " tillers, sugar refiners, and brewers ; andirons and other articles " for household use — philosophical apparatus. " XII. Tin wares for most purposes of ordinary use, " XIII. Carriages of all kinds. " XIV. Snuff, chewing and smoaking tobacco. " XV. Starch and hair powder. " XVI. Lampblack and other painters' colours. "XVII. Gunpowder. " Besides manufactories of these articles which are carried on " as regular trades, and have attained to a considerable degree ** of maturity, there is a vast scene of household manufacturing, *' which contributes more largely to the supply of the communi- " ty, than could be imagined, without having made it an object ♦* of particular inquiry. This observation is the pleasing result ♦' of the investigation, to which the subject oi this report hafs 116 ADDRKSSES. " led ; and is applicable as well to the southern as to the middle " and northern states. Great quantities of coarse cloths, coat- " ings, serges and flannels, linsey woolseys, hosiery of wool, " cotton, and thread, coarse fustians, jeans and muslins, checked " and striped cotton and linen goods, bedticks, coverlets and " counterpanes, tow linens, coarse shirtings, sheetings, towelling *' and table linen, and various mixtures of wool and cotton, and " of cotton and flax, are made in the household way ; and in " many instances to an extent not only sufficient for the supply *' of the families in which they are made, but for sale ; and even " in some cases for exportation. It is computed in a number of " districts, that two thirds, three fourths, and even four-fifths of ** all the clothing of the inhabitants are made by themselves. *' The importance of so great a progress, as appeal s to have *' been made in family manufactures, within a few years, both " in a moral and political view, renders the fact highly interest- "ing. " Neither does the above enumeration comprehend all the ar- " tides that are manufactured as regular trades. Many others " occur, which are equally well established, but which, not being " of equal importance, have been omitted. And there are many " attempts still in theii infancy, which, though attended with ve- ••' ry favourable appearances, could not have been properly com- *' prised in an enumeration of manufactories already established. " There are other articles, also, of great importance, which, " though, strictly speaking, manufactures, are omitted, as being "immediately connected with husbandry; such are flour, pot and " pearl ash, pitch, tar, turpentine, and the like. *' There remains to be noticed an objection to the encourage- " ment of manufactures, of a nature different from those which " question the probability of success — this is derived from its " supposed tendency to give a monopoly of advantages to particu- " lar classes, at the expense of the rest of the community, who, it " is affrmed, would be able to procure the requisite supplies of *' manufactured articles, on better terms from foreigners, than from " our own citizens ; and who, it is alleged, are reduced to the ne- " cessity of paying an enhanced f rice for whatever they want, by " every measure, which obstructs the free competition of foreign " commodities. *' It is not an unreasonable supposition, that measures which *' serve to abridge the free competition of foreign articles, have " a tendency to occasion an enhancement of prices : and it is not " to be denied, that such is the effect in a number of cases ; but " the fact does not uniformly correspond with the theory. — " A reduction of prices has, in several i?istances, iynmediately suc- " ceededto the establishment of a domestic manufacture. Whether *' it be that foreign manufacturers endeavour to supplant by un> ADDRESSES. 117 " derselling our own, or whatever else be the cause, the effect has " been such as is stated, and the reverse of what might have been " expected. '' But though it were true, that the immediate and certain ef- " feet of regulations controlling the competition of foreign with '"'■ domestic fabrics, was an increase of price, it is universally *' true, that the contrary is the ultimate effect with every suc- *' cessful manufacture. IV/ieji a domestic manufacture has attain- " ed to perfection^ and has engaged in the prosecation of it a com- ^^ pctent number of persons ^it invariably becomes cheaper. Being *' free from the heavv charges which attend the importation of " foreign commodities, it can be afforded., and accordingly sel- *• dom or never fails to be sold cheaper., in process of time., than '"''xvas the Joreign article for which it is a substitute. The inter- " nal competition xvhich takes place., soon does aruay every thing *' like monopoly ; and by degrees reduces the price of the article "■ to the minimum of a reasonable profit on the capital em- " ployed. This accords with the reason of the thing, and with *' experience. " Whence it follows, that it is the interest of the community., zvith "a view to eventual and permanent economy., to encourage the ''^growth of manufactures. In a national view, a temporary en- *•■ hancement of price must always be well compensated by a per- *' manent reduction of it. " It is a reflection, which may with propriety be indulged here, " that this eventual diminution of the prices of manufactured ar- " tides, which is the result of internal manufacturing establish- " ments, has a direct and very important tendency to benefit ag- " riculture. It enables the farmer to procure, with a smaller " quantity of his labour, the manufactured produce of which he " stands in need, and consequently increases the value of his in- " come and property. " The objections which are commonly made to the expedien- " cy of encouraging, and to the probability- of succeeding in " manufacturing pursuits, in the United States, having now " been discussed, the considerations, which have appeared in "■ the course of the discussion, recommending that species of in- " dustiy to the patronage of the government, will be materially " strengthened by a few general and some particular topics, " which have been naturally reserved for subsequent notice. 1. "There seems to be a moral certainty that the trade of a " country., xvhich is both manufacturing and agricultural., will be '■^more lucrative and prosperous., than that of a country which is *' merely agricultural. " One reason for this is found in that general effort of nations, " (which has been already mentioned) to procure from their " own soils, the articles of prime necessity requisite to their own 118 ADDRESaES. *' consumption and use ; and which serves to render their de- *' mand for a foreign supply of such articles in a great degree oc* " casional and contingent. Hence, white the u'ce-ssitiea ^f na- " tions exclusively devoted to agriculturt^ for the fabrics of manu' ^'•facturing- states are constant and regular, the xvants of the iat<» " ter for the products ef t he former ^ are liable to very consider::hh '■'■ jftuctuations and interruptions. The great inequalities result- " ing from difference of seasons, have been elsewhere remarked ; " this uniformity of demand, on one side, and unsteadiness of it " on the other, must necessarily have a tendency to cause the " general course of the exchange of commodities between the " parties, to turn to the disadvantage of the merely agricultural " states. Peculiarity of situation, a climate and soil adapted to " the production of peculiar commodities, may, sometimes, con- *' tradict the rule; but there is every reason to believe, that it *' will be found, in the main, a just one. " Another circumstance which gives a superiority of commer- " cial advantages to states that manufacture, as well as cultivate, " consists in the more numerous attractions, which a more di- *' versified market offers to foreign customers, and in the greater " scope which it afRrds to mercantile enterprise. It is a posi- *' tion of indisputable truth in ccwninerce, depending too on very *' obvious reasons, that the greatest resort will ever be to those " marts, where commodities, while equally abundant, are most •' various. Each difference of kind holds out an inducement ; "and it is a position not less clear, that the field of enterprise " must be enlarged to the merchants of a country, in proportion " to the variety as well as the abundance of commodities, which '^'- they find at home for exportation to foreign markets. " A third circumstance, perhaps not inferior to either of the " other two, conferring the superiority which has been stated, ^ has relation to the stagnations of demand for certain commo- " dities, which, at some time or other, interfere more or less *' with the sale of all. The nation which can bring to market " but few articles, is likely to be more quickly and sensibly af- " fected by such stagnation ; than one which is always possessed '' of a great variety of commodities ; the former frequently finds '' too great a portion of its stock of materials, for sale or exchange, " lying on hand — or is obliged to make injurious sacrifices to '•'^ supply its wants of .foreign articles, which are numerous and " urgent, in proportion to the smallness and the number of its "own. The latter commonly finds itself indemnified, by the " high prices of some articles, for the low prices of others : and " the prompt and advantageous sale of those articles which are " in demand, enables its merchants the better to wait for a fa- " vourable change, in respect to those which are not. There is " ground to believe,, that a difference of situation, in this particu- ADDRFSSES. 110 "lar, has immensely different effects upon the wealth and pros- *' peritv of nations. " From these circumstances, collectively, two important in~ " ferences are to be drawn ; one, that there is always a higher "probability of a favourable balance of trade, in regard to *' countries, in which manufactures founded on the basis of a " thriving agriculture, flourish, than in regard to those, which " are confined wholly or almost wholly to agriculture ; the other '' (which is also a consequence of the first) that countries of the " former description are likely to possess more pecuniary wealth " or money, than those of the latter. "But the uniform appearance of an abundance of specie^ as the ^'■concomitant of a flourishing state of mawfactures, and of the *' reverie^ where they do not prevail^ afford a strong presumption *' oj their favourable operationupon the xvealth of a country. " Not only the ivealth., but the independence and security of a *' country appear to be materially connected zuith the prosperity " of manufactures. Every nation, with a view to these great " objects, ought to endeavour to possess within itself all the " essentials of national supply. These comprise the means of " subsistence, habitation, clothing and defence. " The possession of these is necessary to the perfection of the " body politic, to the safety as well as to the welfare of the soci- " ety ; the want of either is the want of an important organ of po- " litical life and motion ; and in the various crises which await a *' state, it must severely feel the effects of such deficiency. The *' extreme embarrass m.ents of the united states^ during the late '■^xuar.^from an incapacity of supplying themselves^ are still mat- •' ter of keen recollection : a future war might be expected again ^^ to exemplify the mischiefs and dangers of a situation., to which • that incapacity is still in too great a degree applicable., unless •* changed by timely and vigorous exertions. To effect this ** change, as fast as shall be prudent, merits all the attention, and " all the zeal of our public councils ; it is the next great work to *'^be accomplished. " The want of a navy to protect our external commerce, as ** long as it shall continue, must render it a peculiarly precari- " ous reliance, for the supply of essential articles ; and must ** serve to strengthen prodigiously the arguments in favour of " manufactures. " To these general considerations are added some of a more *' particular nature. " Our distance from Europe, the great fountain of manufac- *' tured supply, subjects us, in the existing state of things, to " inconvenience and loss in two ways. " The buikiness of those commodities which are the chief " productions of the soil, nece;ssarily imposes very heavy charges 120 ADDRESSES. " on their transportation, to distant markets. These charges, in " the cases, in which the nations, to whom our products are "sent, maintain a competition in the supply of their own mar- *' kets, principally fall upon us, and form material deductions, " from the primitive value of the articles furnished. The charges " on manufactured supplies brought from Europe, are greatly " enhanced by the same circumstance of distance. These " charges, again, m the cases in which our own industry main- " tains no competition, in our own markets, also principally fall " upon us ; and are an additional cause of extraordinary deduc- " tion from the primitive value of our own products ; these be- '' ing the materials of exchange for the foreign fabrics which we " consume. " The equality and moderation of individual property, and " the growing settlements of new districts, occasion, in this " country, an unusual demand for coarse manufactures ; the " charges of which being greater in proportion to their greater " bulk, augment the disadvantage, which has just been des- " cribed. " As in most countries domestic supplies maintain a very *' considerable competition with such foreign productions of the " soil, as are imported for sale ; if the extensive establishment *' of manufactories in the united states does not create a similar *' competition in respect to manufactured articles, it appears to *' be clearly deducible, from the considerations which have been " mentioned, that they must sustain a double loss in their ex- *' changes with foreign nations ; strongly conducive to an un- ** favourable balance of trade, and very prejudicial to their in- *' terests. " These disadvantages press with no small weight, on the " landed interest of the country. In seasons of peace^ they cause " a serious deduction from the intrinsic value of the products of " the soil. In the time of a war. which should either involve " ourselves, or another nation, possessing a considerable share " of our carrying trade, the charges on the transportation of our " commodities, bulky as most of them are, could hardly fail to " prove a grievous burden to the farmer, while obliged to depend " in so great a degree as he now does, upon foreign markets for " the vent of the surplus of his labour." " It is not uncommon to meet with an opinion, that though " the promoting of manufactures may be the interest of a part " of the union, it is contrary to that of another part. The north- *' ern and southern regions are sometimes represented as having " adverse interests in this respect. Those are called manufac- ADDRESSES. 121 '' turing, these agricultural states ; and a species of opposition is *' imagined to subsist between the manufacturing and agricultu- *' ral interest. " This idea of an opposition between those tzvo interests is the " common error of the early periods of every country ; but experi- *' ence gradually dissipates it. Indeed they are perceived so " often to succour and to befriend each other, that they come at " length to be considered as one ; a supposition which has been *' frequently abused, and is not universally true. Particular en- *' couragements of particular manufactures may be of a nature to " sacrifice the interests of land-holders to those of manufacturers ; *' but it is nevertheless a maxim well established bv experience, " and generally acknowledged where there has been sufficient " experience, that the aggregate prosperity of manufactures., and " the aggregate prosperity of agriculture are intimately connected. " In the course of the discussion which has had place, various " weighty considerations have been adduced operating in support " of this maxim. Perhaps the superior steadiness of the demand " of a domestic market for the surplus produce of the soil, is " alone a convincing argument of its truth. " Ideas of a contrariety of interests between the northern *' and southern regions of the union, are in the main as unfound- *' ed as they are mischievous. The diversity of circumstances, *' on which such contrariety is usually predicated, authorizes a *' directly contrary conclusion. Mutual wants constitute one of *' the strongest links of political connexion ; and the extent of *' these bears a natural proportion to the diversity in the means " of mutual supply. "■ Suggestions of an opposite complexion are ever to be de- *' plored, as unfriendly to the steady pvirsuit of one great common *' cause, and to the perfect harmony of all the parts. "• In proportion as the mind is accustomed to trace the inti- " mate connexion of interests, which subsists between all the *' parts of society, united under the same government — the in- " finite variety of channels which serve to circulate the prosperity " of each to and through the rest — in that proportion it will be " little apt to be disturbed by solicitudes and apprehensions, " which originate in local discriminations. It is a truth as im- " portant as it is agreeable, and one to which it is not easy to *' imagine exceptions, that every thing tending to establish sub- " stantial and permanent order, in the affairs of a country, to *' increase the total mass of industry and opulence, is ultimately " beneficial to every part of it. On the credit of this great truth, " an acquiescence may safely be accorded, from every quarter, " to all institutions, and arrangements, which promise a confir- " mation of public oi-der, and an augmentation of national re- " source. 16 122 ADDRESSES. " But there are more particular considerations which serve to " fortify the idea, that the encouragement of manufactures is the " interest of all parts of the union. If the northern and middle *' states should be the principal scenes of such establishments, *' they would immediately benefit the more southern, by creating " a demand for productions, some of which they have in com- " mon with the other states, and others which are either pecu- *' liar to them, or more abundant, or of better quality than else- " where. These productions, principally, are timber, flax, hemp, *' cotton, wool, raw silk, indigo, iron, lead, furs, hides, skins and " coals ; of these articles, cotton and indigo are peculiar to the *' southern states : as are, hitherto, lead and coals ; flax and hemp *' are or may be raised in greater abundance there, than in the ** more northern states ; and the wool of Virginia is said to be of ** better quality than that of any other state ; a circumstance *' rendered the more probable by the reflection, that Virginia *' embraces the same latitudes with the finest wool countries of '* Europe. The climate of the south is also better adapted to " the production of silk. '' The extensive cultivation of cotton can perhaps hardly be *' expected, but from the previous establishment of domestic "manufactories of the article ; and the surest encouragement *' and vent, for the others, would result from similar establish- " ments in respect to them. " A full view having now been taken of the inducements to " the promotion of manufactures in the united states, accompa- *' nied with an examination of the principal objections which are ** commonly urged in opposition, it is proper, in the next place, " to consider the means by which it may be effected, as intro- *' ductory to a spetification of the objects which, in the present ** state of things, appear the most fit to be encouraged, and of *' the particular measures which it may be advisable to adopt, " in respect to each. " In order to a better judgment of the means proper to be " resorted to by the united states, it will be of use to advert to " those which have been employed with success in other coun- " tries. The principal of these are — I. '' Protecting duties — or duties on those foreign articles " which are the rivals of the domestic ones intended to be en- " couraged. " Duties of this nature evidently amount to a virtual bounty " on the domestic fabrics, since, by enhancing the charges on " foreign articles, they enable the national manufacturers to un- " dersell all their foreign competitors. The propriety of this *' species of encouragemect need not be dwelt upon ; as it is not " only a clear result from the numerous topics which have been " suggested, but is sanctioned by the laws of the united states, ADDRESSES. 12«i ** in a variety of instances ; it has the additional recommenda- " tion of being a resource of revenue. Indeed all the duties im- *' posed on imported articles, though with an exclusive view to " revenue, have the effect in contemplation, and, except where *' they fall on raw materials, wear a beneficent aspect towards ** the manufactures of the country. II. '' Prohibitions of rival articles, or duties equivalent to " prohibitions. '•" This is another and an efficacious means of encouraging " national manufactures ; but in general it is only fit to be em- " ployed when a manufacture has made such a progi-ess, and is " in so many hands, as to insure a due competition, and an ade- *' quate supply, on reasonable terms. Of duties equivalent to " prohibitions, there are examples in the laws of the united " states, and there are other cases, to which the principle may " be advantageously extended; but they are not numerous. " Con.sidering- a monopoly of the domestic market to its own *' manufacturers as the reigning policy of manufacturing nations^ " a similar policy on the part of the united states^ in every proper *' instance^ is dictated^ it might almost be said^ by the principles of ^*' distributive justice ; certainly by the duty of endeavouring to *■'' secure to their own citizens a reciprocity of advantages. III. " Prohibitions of the exportation of the materials of man- ** ufactures. " The desire of securing a cheap and plentiful supply for the *■'• national workmen, and, where the article is either peculiar to " the country', or of peculiar quality there, the jealousy of ena- *■' bling foreign workmen to rival those of the nation, with its " own materials, are the leading motives to this species of regu- " lation. It ought not to be affirmed, that it is in no instance " proper ; but it is certainly one which ought to be adopted with " great circumspection and only in very plain cases. It is seen " at once, that its immediate operation is to abridge the demand, " and keep down the produce of some other branch of industry, " generally speaking, of agriculture, to the prejudice of those " who carry it on ; and though, if it be really essential to the *' prosperity of any very important national manufacture, it may " happen that those who are injured, in the first instance, may " be eventually indemnified, by the superior steadiness of an " extensive domestic market depending on that prosperity : yet *' in a matter, in which there is so much room for nice and diffi- *' cult combinations, in which such opposite considerations com- ** bat each other, prudence seems to dictate, that the expedient " in question ought to be indulged with a sparing hand. IV. "Pecuniary bounties. *' This has been found one of the most efficacious means of ♦' encouraging manufactures, and it is, in some views, the best. 124 ADDRESSES. " Though it has not yet been practised upon by the government *' of the united states, (unless the allowance on the exportation " of dried and pickled fish and salted meat could be considered ** as a bounty) and though it is less favoured by public opinion " than some other modes — its advantages are these — 1. " It is a species of encouragement more positive and direct **than any other, and for that very reason, has a more immedi- "■ ate tendency to stimulate and uphold new enterprises, increas- '* ing the chances of profit, and diminishing the risks of loss, in *' the first attempts. 2. ••' It avoids the inconvenience of a temporary argumentation " of price, which is incident to some other modes, or it produces " it to a less degree ; either by making no addition to the char- " ges on the rival foreign article, as in the case of protecting du- *' ties, or by making a smaller addition. The first happens when *' the fund for the bounty is derived from a different object '' (which may or may not increase the price of some other arti- *•• cle, according to the nature of that oi.ject ;) the second, when *' the fund is derived from the same or a similar object of foreign *' manufacture. One per cent, duty on the foreign article, con- *' verted into a bounty on the domestic, will have an equal effect '^ with a dutv of two per cent, exclusive of such bounty ; and " the price of the foreign commodity is liable to be raised, " in the one case, in the proportion of one per cent, in the other, " in that of two per cent. Indeed the bounty, when drawn from *' another source, is calculated to promote a reduction of price ; " because, without laying any new charge on the foreign article, *' it serves to introduce a competition with it, and to increase " the total quantity of the article in the market. 3- '■'• Bounties have not, like high protecting duties, a tendency " to produce scarcity. An increase of price is not always the *' immediate, though, where the progress of a domestic manufac- " ture does not counteract a rise, it is commonly the ultimate " effect of an additional duty. In the interval, between the laying " of the duty and a proportionable increase of price, it may dis- *' courage importation, by interfering with the profits to be ex- " pected from the sale of the article. 4. " Bounties are sometimes not only the best, but the only " proper expedient, for uniting the encouragement of a new ob- *' ject of agriculure, with that of a new object of manufacture. *' It is the interest of the fanner to have the production of the *' raw material promoted, by counteracting the interference of the " foreign material of the same kind — It is the interest of the man- " ufacturer to have the material abundant or cheap. If, prior to " the domestic production of the material, in sufficient quantity, to ''supply the manufacturer on good terms, a duty be laid upon <' the importation of it from abroad, with a view to promote the ADDRESSES. . > 125 " raising of it at home, the interest both of the farmer and man- *■'- ufacturer will be disserved. By either destroying the requisite '■'■ supph , or raising the price of the article, beyond what can be " afforded to be given for it, by the conductor of an infant man- *' ufacture, it is abandoned or fails ; and there being no domes- " tic manufactories, to create a demand for the raw material, *' which is raised by the farmer, it is in vain, that the competition " of the like foreign articles may have been destroyed. " It cannot escape notice, that a duty upon the importation of *' an article, can no otherwise aid the domestic production of it, " than by giving the latter greater advantages in the home mai-- " ket. it can have no influence upon the advantageous sale of *' the article produced in foreign markets ; no tendency, there- *' fore, to promote its exportation. "• The true way to conciliate those two interests, is to lay a *' duty on foreign manufactures of the material, the growth of " which is desired to be encouraged and to apply the produce of " that duty by wav of bounty, either upon the production of the " material itself, or upon its manufacture at home, or upon both. " In this disposition ui the thing, the manufacturer commences " his enterprise, under every advantage, which is attainable as to '' quantity or price of the raw material ; and the farmer, if the *' bounty be immediately given to him, is enabled by it to enter '' into a successful competition with the foreign material : if the "■ bounty be to the manufacturer on so much of the domestic *' material as he consumes, the operation is nearly the same ; he " has a motive of interest to prefer the domestic commodity, if "• of equal quality, even at a higher price than the foreign, so " long as the difference of price is any thing short of the bounty, " w^hich is allowed upon the article. " Except the simple and ordinary kinds of household manu- " facture, or those for which there are very commanding local *' advantages, pecuniary bounties are in most cases indispensa- " ble to the introduction of a new branch. A stimulus and a " support not less powerful and direct is, generally speakings es- " sential to the overcoming' of the obstacles which arise from the *' competitions oj superior skill and maturity elsewhere. Bou7ities '' are especially essential, in regard to articles, upon which those '■'■ foreigners who have been accustomed to supply a country, are in *' the practice of granting them. " The continuance of bounties on manufactures long estab- " lished, must almost always be of questionable policy : because " a presumption would arise in every such case, that there were *' natural and inherent impediments to success. But in new iin- *' dertakings, they are as justifiable as they are oftentimes neces- *' sary. " There is a degree of prejudice against bounties, from an 126 ADDRESSES. " appearance of giving away the public money, without an im- " mediate consideration, and from a supposition, that they " serve to enrich particular classes, at the expense of the com- " munity. " But neither of these sources of dislike will bear a serious " examination. There is no purpose to ivhich public money can *' be more beneficially applied^ than to the acquisition of a new and ^'■useful branch of industry ; no consideration more valuable than " a permanent addition to the general stock of productive labour. " As to the second source of objection, it equally lies against " other modes of encouragement which are admitted to be eli- " gible. As often as a duty upon a foreign article makes an " addition to its price, it causes an extra expense to the commu- " nity, for the benefit of the domestic manufacturer. A bounty " does no more. But it is the interest of the society, in each case^ " to submit to a temporary expense, which is more than compensa- " ted, by an increase of industry and -wealth— 'by an aug-mentation '' of resources and independence — and by the circumstance ofeven- *' tual cheapness ^xuhich has been noticed in another place. V. " Premiums. " These are of a nature allied to bounties, though distinguish- " able from them in some important features. *' Bounties are applicable to the whole quantity of an article *' produced, or manufactured, or exported, and involve a corres- " pondent expense : premiums serve to reward some particular " excellence or superiority, some extraordinary exertion or skill, " and are dispensed only in a small number of cases. But their " effect is to stimulate general effort ; contrived so as to be both " honorary and lucrative, they address themselves to different " passions ; touching the chords as well of emulation as of inter- " est. They are accordingly a very economical mean of exci- ^ ting the enterprise of a whole community. " There are various societies in different countries, whose " object is the dispensation of premiums for the encouragement " of agriculture, arts, manufactures, and commerce ; and though " they are, for the most part, voluntary associations, with com- " paratively slender funds, their utility has been immense. Much " has been done by this means in Great Britain ; Scotland in " particular, owes materially to it a prodigious amelioration of *' condition. From a similar establishment in the united states, " supplied and supported by the government of the union, vast " benefits m.ight reasonably be expected. VI. " The exemption of the materials of manufactures from " duty. " The policy of that exemption, as a general rule, particularly " in reference to new establishments, is obvious. It can hardly " ever be advisable to add the obstructions of fiscal burdens to ADDRESSES. 127' " the difficulties which naturally embarrass a new manufacture ; " and where it is matured and in condition to become an object " of revenue, it is, generally speaking, better that the fabric, " than the material, should be the subject of taxation. Ideas " of proportion between the quantum of the tax and the value " of the article, can be more easily adjusted in the former than " in the latter case. An argument for exemptions of this kind " in the united states, is to be derived from the practice, as far " as their necessities have permitted, of those nations whom " we are to meet as competitors in our own and in foreign " markets. VII. " Drawbacks of the duties which are imposed on the " materials of manufactures. " It has already been observed, as a general rule, that duties " on those materials ought, with certain exceptions, to be for- " borne. Of these exceptions, three cases occur, which may *' serve as examples — one, where the material is itself an object *' of general or extensive consumption, and a fit and productive *' source of revenue ; another, where a manufacture of a simpler " kind, the competition of which with a like domestic article is *' desired to be restrained, partakes of the nature of a raw ma- " terial, from being capable by a further process, to be converted " into a manufacture of a different kind, the introduction or " growth of which is desired to be encouraged : a third, where " the material itself is a production of the country, and in suffi- *' cient abundance to furnish a cheap and plentiful supply to the " national manufacturers. " Under the first description comes the article of molasses. " It is not only a fair object of revenue, but being a sweet, it is '* just that the consumers of it should pay a duty as well as the " consumers of sugar. " Cottons and linen in their white state, fall under the second " description — a duty upon such as are imported is proper to " promote the domestic manufacture of similar articles in the " same state — a drawback of that duty is proper to encourage " the printing and staining at home, of those which are brought " from abroad. When the first of these manufactures has at- " tained sufficient maturity in a country, to furnish a full supply " for the second, the utility of the drawback ceases. *' The article of hemp either now does or may be expected " soon to exemplify the third case, in the united states. " Where duties on the materials of manufactures are not laid " for the purpose of preventing a competition with some domes - " tic production, the same reasons which recommend, as a " general rule, the exemption of those materials from duties, *' would recommend as a like general rule, the allowance of " drawbacks in favour of the manufacturer ; accordingly, such 128 ADDRESSES. " drawbacks are familiar in countries which systematically pur- " sue the business of manufactures ; which furnishes an argu- " ment for the observance of a similar policy in the united states ; " and the idea has been adopted by the laws of the union, in the " instances of salt and molasses. It is believed that it will be " found advantageous to extend it to some other articles. VIII. " The encouragement of new inventions and discove- *' ries, at home, and of the introduction into the united states of " such as may have been made in other countries ; particularly " those which relate to machinery. " It is customary with manufacturing nations to prohibit, un- " der severe penalties, the exportation of implements and ma- " chines, they have either invented or improved. There are " already objects for a similar regulation in the united states ; " and others may be expected to occur from time to time. The " adoption of it seems to be dictated by the principle of recipro- " city. Greater liberality, in such respects, might better com- " port with the general spirit of the country ; but a selfish and " exclusive policy in other quarters, will not always permit the " free indulgence of a spirit which would place us upon an un- " equal footing. As far as prohibitions tend to prevent " foreign competitors from deriving the benefit of the improve- " ments made at home, they tend to increase the advantages of *' those by whom they may have been introduced ; and operate " as an encouragement to exertion. IX. "• Judicious regulations for the inspection of manufactured " commodities. " This is not among the least important of the means by which " the prosperity of manufactures may be promoted. It is indeed in *' many cases one of the most essential. Contributing to prevent *' frauds upon consumers at home, and exporters to foreign " countries — to improve the quality and preserve the character " of the national manufactures, it cannot fail to aid the expediti- " ous and advantageous sale of them, and to serve as a guard " against successful competition from other quarters. The rep- " utation of the flour and lumber of some states, and of the pot- " ash of others, has been established by an attention to this point. " And the like good name might be procured for those articles, " wheresoever produced, by a judicious and uniform system of *' inspection throughout the ports of the united states. A like " system might also be extended with advantage to other com- *' modities. "X. The facilitating of pecuniary remittances from place to " place. " XI. The facilitating of the transportation of commodities. " The foregoing are the principal of the means, by which the " growth of manufactures is ordinarily promotad. It is, how- ADDRESSES. 129 " ever not meiely necessary that measures of government, " which have a direct view to manufactures, should be calculat- " ed to assist and protect them ; but that those which only collat- *'eially affect them, in the general course of the administraticm, •' should be guarded from any peculiar tendency to injure ^^ them. " The possibility of a diminution of th€ revenue may pre- " sent itself, as an objection to the arrangements which have been submitted. '•'• But there is no truth which may be mo7-e firmly relied upon^ " than that the interests of the revenue are promoted by whatever '■^promotes an increase of national industry and wealth. In proportion to the degree of these, is the capacity of eve- •' ry country to contribute to the public treasury ; and when the " capacity to pay is increased, or even is not decreased, the only " consequence of measures which diminish any particular re- " source, is a change of the object. If, by encouraging the " manufactui-e of an article at home, the revenue, which has " been wont to accrue from its importation, should be lessened, *' an indemnification can easily be found, either out of the manu- *' facture itself, or from some other object which may be deemed *' more convenient." NO. X. Philadelphia^ June 18, 1819, Report of the Committee of Commerce and Manufactures on the cotton branch. Its slow progress till 1805. Rapid progress ajterwards. Consumption of cotton in the united states. Peo- ple employed in the manufacture. Amount of their wages^ and of the goods produced. Predictions of the consequences of the neglect of manufactures. Their Julflment. Report on ivoollen manufacture. Affecting memorial from Oneida county. Ca- lamitous state ofaffcdrs uJiheeded. Ruin of manufacturers. An idea appears to be entertained by many persons that our views lead to great innovations, and to advocate visionary and new formed projects, of which the results may be pernicious. The extracts from the report of Alexander Hamilton, on manu- factures, contained in our last address, ought to remove these untounded impressions. That most excellent document present- ed to the united states a plan of policy which embraced, on the most liberal scale, that protection of the manufacturing industry 130 ADDRESSES. of the united states, of which we are endeavouring, with our feeble efforts, to prove the necessity. We novv submit to the public two reports of the commit- tee of commerce and manufactures of the congress of 1816 — that congress by which was enacted the tariff that has produced the present calamitous state of affairs. These documents fully prc've, that the subject had been duly considered, and was fully understood by that committee, whose wise counsels, unfortu- tunately, were over-ruled by the disciples of Adam Smith, those gentlemen, whose maxim is ' to buy where articles can be had cheapest^ — a maxim, we repeat, to the utter rejection of which Great Britain owes the great mass of her wealth, power, and re- sources — a maxim which has never failed to ruin any nation by which it has been adopted. A cursory view of these reports will evince the sagacity of the gentlemen by whom they were drawn up. Their predictions have unhappily become history. The present impoverishment of the country, obviously resulting from the neglect of protecting domestic manufactures, was as clearly foretold by them, in 1816, as it can now be described by the most accurate pencil. In an ill hour, the admonitions of the committee were disregarded — and heavily the nation at present pays the forfeit. We annex to these reports the petition of the cotton manu- facturers of Oneida county, in the state of New York, presented to congress in the year 1818, a pathetic appeal to their fellow citizens for protection — an appeal to which no attention what- ever was paid. They were consigned to ruin, without the least attempt to interpose in their favour. Report of the committee cj commerce and manufacturefi ^ to xvhich xvere referred the memorials arid petitions of manufacturers of cotton wool. — February 13, 1816. " The coaimittee of commerce and manufactures, to which were " referred the memorials and petitions of the manufacturers " of cotton wool, respectfully submit the following RE- " PORT— " The committee were conscious, that they had no ordinary *' duty to perform, when the house of representatives referred to *' their consideration, the memorials and petitions of the manu- *' facturers of cotton wool. In obedience to the instructions of *' the house, they have given great attention to the subject, and " beg leave to present the result of their deliberations. *"■ They are not a little apprehensive, that they have not sue- " ceeded in doing justice to a subject so intimately connected " with the advancement and prosperity of agriculture and com- ADDRESSES. 161 ** merce — a subject which enlightened statesmen and philoso- *' phcrs have deemed not unworthy of their attention and con- *' sideration. '' It is not the intention of the committee to offer any theo- *' retical opinions of their own, or of others. They are persuaded *' that a display of speculative opiniims would not meet with " approbation. From these views, the committee are disposed " to state facts, and make such observations only as shall be *' intimatelv connected with, and warranted by them. " Prior to the years 1806 and 1807, establishments for manu- *' facturing cotton wool had not been attempted, but in a few *' instances, and on a limited scale. Their rise and progress are " attributable to embarrassments to which commerce was sub- *' jected; which embarrassments originated in causes not within *' the control of human prudence. "• While commerce flourished, the trade which had been car- " ried on with the continent of Europe, with the East-Indies, " and with the colonies of Spain and France, enriched our enter- " prising merchants, the benefits of which were sensiblj- felt by *' the agriculturists, whose wealth and industry were increased " and extended. When external commerce was suspended, the *' capitalists throughout the union became solicitous to give ac- " tivity to their capital. A portion of it, it is believed, was " directed to the improvement of agriculture, and not an incon- *' siderable portion of it, as it appears, was likewise employed in *' erecting establishments, for manufacturing cotton wool. To " make the statement as satisfactory as possible — to give it all " the certainty that it is susceptible of attaining, the following *' facts are respectfully submitted to the consideration of the " house. They show the rapid progress which has been made *' in a few years, and evidence the ability to carry them on with " certainty of success, should a just and liberal policy regard " them as objects deserving encouragement. " Li the year 1800 500"^ Bales of cotton ma- 1805 1,0(X) ! nufacturedin manu- 1810 10,000 [facturing establish- 1815 90,000 J ments. " This statement the committee have no reason to doubt ; nor " have they any to question the truth of the following succinct " statement of the capital which is employed, of the labour " which it commands, and of the products of that labour. "Capital S40,000,000 " Males employed, from the age of seventeen and upwards __---_ 10,000 " Women and female children - - - - 66,000 i^'-i ■ ADDRESSES, " Boys, under seventeen years of age - - 24,000 " Wages of one hundred thousand persons, averaging $150 each . - - - ^15,000,000 " Cotton wool manufactured, nhiety thousand bales, amounting to - - - - lbs. 27,000.000 " Number of yards of cotton, of various kinds, 81,000,000" *' Cost, per yard, averaging 30 cents - - §24,300,000 " The rise and progress of such establishments can excite no " wonder The inducements to industry in a free government *' are numerous and inviting. Effects are always itn unison with " their causes. The inducements consist in the certainty and *' security which every citizen enjoys, of exercising exclusive *' dominion over the creations of his genius, and the products " of his labour ; in procuring from his native soil, at ail times^ *' with facility, the raw materials that are required ; and in the *' liberal encouragement that will be accorded by agriculturists *' to those who, by their labour, keep up a constant and increas- *' ing demand for the produce of agriculture. " Every state will participate in those advantages. The re* " sources of each will be explored, opened, and enlarged. Dif- *' ferent sections of the union will, according to their position, " the climate, the population, the habits of the people, and the "■ nature of the soil, strike into that line of industry, which i& " best adapted to their interest and the good of the whole ; an *' active and fi^ee intercourse, promoted and facilitated by roads *' and canals, tvill ensue ; })rejudices which are generated by dis- *' tance, and the want of inducements to approach each other, " and reciprocate benefits, will be removed ; information will be " extended ; the union will acquire strength and solidity ; and *' the constitution of the united states, and that of each state, *^ will be regarded as fountains from which flow numerous *' streams of public and private prosperity. " Each government, moving in its appropriate orbit, perform- " ing with ability, its separate functions, will be endeared to the " hearts of a good and grateful people. " The states that are most disposed to manufactures, as regular " occupations, will draw from the agricultural states all the raw " materials which they want, and not an inconsiderable portion *' also of the necessaries of life ; while the latter will, in addition " to the benefits which they at present enjoy, always command, " in peace or in war, at moderate prices, every species of manu- "facture, that their wants may require. Should they be incli- " ned to manufacture for themselves, they can do so with suc- " cess ; because they have all the means in their power to erect " and extend at pleasure manufacturing establishments. Our *'• wants being supplied by our own ingenuity and industry, ADDRESSES. 13i> "exportation of specie to pay for foreign manufactures, will " cease. " The value of American produce at this time exported^ zuil/ not " enrthJe t/ie importers to pay for tlie foreign manuafctures import- *' ed. Whenever the two accounts shall be fairly stated, the bal- *' ance against the united states will be found to be many mil- " lions of dollars. Such is the state of things, that the change *' must be to the advantage of the united states. The precious " metals will be attracted to them, the diffusion of which, in a *' regular and uniform current through the great arteries and " veins of the body politic, will give to each member health and " vigour. " In proportion as the commerce of the united states depends " on agriculture and manufactures, as a common basis, will it *' increase and become independent of those revolutions and fluc- " tuations, which the ambition and jealousy of foreign govern- " ments are too apt to produce. Our navigation will be quick- " ened ; and, supported as it will be by internal resources never *' before at the command of any nation, will advance to the extent *' of those resources. " New channels of trade, to enterprise no less important than *' productive, are opening, which can be secured only by a wise " and prudent policy appreciating their advantage. ^ " If want of foresight should neglect the cultivation and im- " provement of them, the opportune moment may be lost, per- " haps for centuries, and the energies of this nation be thereby " prevented from developing themselves, and from making the *' boon which is proffered, our own. •• " By trading on our own capital, collisions with other nations, *' if they be not entirely done away, will be greatly diminished. " This natural order of things exhibits the commencement of " a new epoch, which promises peace, security and repose by a " firm and steady reliance on the produce of agriculture, on the " treasures that are embosomed in the earth, on the genius and " ingenuity of our manufacturers and mechanics, and on the in- " telligence and enterprise of our merchants. "The government possessing the intelligence and the art of "improving the resources of the nation, will increase its eflicienl " powers ; and, enjoying the confidence of those whom it has " made happy, will oppose to the assailants of the nation's rights, " the true, the only invincible iEgis, the unity of will and strength. " Causes producmg war will be few. Should war take place, *' its calamitous consequences will be mitigated, and the expen- " ses and burdens of such a state of things will fall with a Aveight " much less oppressive and injurious on the nation. The ex- " penditures of the last war were greatly increassd bv a depend- 134 ADDRESSES. " ence on foreign supplies. The prices incident to such a de- " pendence will always be high. " Had notour nascent manufacturing establishments increased " the quantity of commodities, at that time in demand, the ex- "penditures would have been much greater, and consequences *' the most fatal and disastrous, alarming even in contemplation, " would have been the fate oi this nation. The experience of *'the past teaches a lesson never to be forgotten, and points em- *' phatically to the remedy. A wise government should heed *' its admonitions, or the independence of this nation will be ex- *' posed to ' the shafts of fortune.' "The committee, keeping in view the interests of the nation, " cannot refrain from stating thai cotton fabrics imported from *' India, interfere not less with that encouragement to which ag- *' riculture is justly entitled, than they do with that which ought " reasonably to be accorded to the manufacturers of cotton wool. "The raw material of which they are made is the growtii of In- " dia, and of a quality inferior to our own. " The fabrics themselves, in point of duration and use, are " likewise inferior to the substantial fabrics of American manu- " facture. Although the India cotton fabrics can be sold for a " lower price than the American, yet the difference in texture is " so much in favour of the American, that the latter may be " safely considered as the cheapest. " The distance of most of the western states from the ocean, " the exuberant richness of the soil, and the variety of its pro- " ducts, forciijly impress the mind of the committee with a belief " that all these causesifnspire to encourage manufactures, and to " give an impetus and direction to such a disposition. Although •■' the western states may be said to be in the gristle, in contem- " plation of that destiny, to which they are hastening, yet the " products of manufactures in those states are beyond every cal- " culation that could reasonably be made ; contrary to the opin- " ion of many enlightened and virtuous men, who have suppos- " ed that the inducements to agriculture and the superior advan- " tages of that life, Avould suppress any disposition to that sort '' of industry. But theories, how ingeniously soever they may " be constructed, how much soever they may be made to conform " to tlie laws of symmetry and beauty, are no sooner brought in- " to conflict with facts, than thev fall into ruins. In viewing " their fragments, the mind is irresistibly led| to render the hom- " age due to the genius and taste of the architects ; but cannot *' refrain from regretting the waste, to no purpose, of superior " intellects. The western states prove the fallacy of such theo- " ries ; they appear in their growth and expansion to be in ad- " vance of thought, while the political economist is drawing '•' their portraits, their features change and enlarge, with such ADDRESSES. 135 " rapidit)% that his pencil in vain endeavours to catch their ex- "pre.sion, and to fix their physiv^ygnomy. " It is to their advantage to manufacture, because, by decreas- " ing the bulk of the articles, they at the same time increase " their value by labour, bring them to market with less expense, "and with the certainty of obtaining the best prices. " Those states, understanding their interest, will not be di- " verted from its pursuit. In the encouragement of manufactures " they find a stimulus for agriculture. " The manufacturers of cotton, in making application to the " national government for encouragement, have been induced " to do so for many reasons. — They know that ihtir eHtablhh' " menta are neiu and in th^'ir infancy^ and that they have to en- " counter a competition with foreign establishments^ that have ar- " rived at maturity^ that are supported by a large capital^ and " have from the government every protection that can be re~ " quired. " The American manufacturers expect to meet with all the " embarrassments which a jealous and monopolizing policy can '^' suggest. The committee are sensible of the force of such *' considerations. They are convinced that old practices and *' maxims will not be abandoned to favour the united states. — " The foreign manufacturers and merchants will put in requisi- " tion all the powers of ingenuity ; will practice whatever art can " devise and capital can accomplish, to prevent American manu- *' facturing establishments from strikmgroot and flourishing in " their rich and native soil. By the allowance of bounties and " drawbacks, the foreign manufacturers and merchants will be " furnished with additional means of carrying on the conflict, " and of ensuring success, " The American manufacturers have good reason for their ap- " prehensions ; they have much at stake. They have a large ca- " pital employed, and are feelinglv alive for its fate. Should " the national government not afford them protection, the dan- " gers which invest and threaten them, will destroy all their hopes "and will close their prospects of utility to their country. A " reasonable encouragement will sustain and keep them erect j " bat if they fail, they fall never to rise again. " The joreign manufacturers and merchants know this^ and " will redouble ivith renovated zeal^ the stroke to prostrate thetn. " They also knoxv^ that should the American manufacturing es- *^ tablishments fall^ their mouldering piles.^ the visible ruins of a " legislative breathy will war?l all who shall tread in the same *'' footsteps^ of the doom., the inevitable destiny of their establish- " ments. " The national government, in viewing the disastrous effects " of ;i short sighted policy, may relent ; but what can relenting 136 ADDilESSES. *' avail ? Can it raise the dead to life ? Can it give for injuries " inflicted, the reparation that is due ? Industry, in every rami- *' fication of society, will feel the shock, and generations will, as " they succeed each other, feel the effects of its undulations. — " Dissatisfaction will be visible every where, and the lost confi- " dence and affection of the citizen, will not be the least of the *' evils the government will have to deplore. But should the na- " tional government, pursuing an enlightened and libei'al policy, " sustain and foster the manufacturing esta')iibhments, a few " years would place them in a condition to bid defiance to foreign " competition, and would enable them to increase the industry, " wealth, and prosperity of the nation ; and to afford to the gov- *' ernment, in times of difficulty and distress, whatever it may *' require to support public credit, while maintaining the rights " of the nation. " Providence, in bountifully placing within our reach, what- " ever can minister to happiness and comfort, indicates plainly " to us our duty — and what we owe to ourselves. Our resour- " ces are abundant and inexhaustible. " The stand that Archimedes wanted, is given to the national *' and state governments — and labour-saving machinery tenders " the lever — the power of bringing those resources into use. " This power imparts incalculable advantages to a nation " whose population is not full. The united states require the *' use of thii power, because they do not abound in population* " The dimi lution of manual labour, by means of machinery, in *' the cotton manufacture of Great Britain, was, in the year 1810, " as two hundred to one. " Our manufacturers have already availed themselves of this " power, and have profited by it. A little more experience in *' making machines, and in managing them with skill, will enable *' our manufacturers to supply more fabrics than are necessary *' for the home demand. " Competition will make the prices of articles low, and the " extension of the cotton manufactories will produce that com- *' petition. " One striking and important advantage, which labour-saving *■' machines bestow, is this, that in all their operations they re- " quire few men ; as a reference to another part of this report *' will show. No apprehensions can then be seriously enteriain- '* ed, that agriculture will be in danger of having its efficient " labourers withdrawn from its service. " On the contrary, the manuj acturing establishments^ increasing " the demand Jor raiv materials^ xvill give to agriculture nezu life *' and expansion. " The committee, after having with great deference and re- " spect, presented to the house this important subject in various ADDRESSES. 137 " points of view, feel themselves constrained, before concluding " this report, to offer a few more' observations, which they con- " sider as being immediatelv connected with it, and not less so " with the present and future prosperity of this nation. *' The prospects of an enlarged commerce are not flattering. " Every niftion in time of peace will supply its own wants " from its own resources, or from those of other nations. "When supp'ies are drawn from foreign countries, the inter- " course which will ensue, will furnish employ to the na\ iga- " tion only of the countries connected, by their reciprocal wants. " Our concern does not arise from, nor can it be increased " b^•, the limitation which our navigation and trade will have " prescribed to them, by the peace and apparent repose of Eu- " rope. " Our apprehensions arise from causes that cannot animate " by their effects. Look vvheresoe\er the eye can glance, and " what are the objects that strike the vision ? On the continent " of Europe, industry, deprived of its motive and incitement, is " paralized ; the accumulated vvcalth of ages, seized by the hand '^ of military despotism, is appropriated to and squandered on " objects of ambition ; the order of things unsettled, and confi- " dence between man and man annihilated. Every moment is "■ looked for, with tremulous, anxious, and increased solicitude ; *' hope languishes ; and commercial enterprize stiffens with fear. *' The political horizon appears to be calm : but many of no or- " dinary sagacity think they behold signs portentous of a change, " the indications of a violent tempest which will again rage, and " desolate that devoted region. " Should this prediction fail, no change for the better, under *' existing circumstances, can take place. Where despotism — " military despotism reigns — silence and fearful stillness must '■ prevail. " Such is the prospect which continental Europe exhibits, to " the enterprize of American merchants. " Can it be possible for them to find in that region, sources " which will supply them with more than seventeen millions of " dollars, the balance due for British manufactures imported ? " this balance being over and above the value of all the exports " to foreign countries from the united states. The view which " is given of the dreary prospect of commercial advantages ac- " cruing to the united states by an intercourse with continental " Europe, is believed to be just. The statement made of the " great balance in favour of Great Britain due from the united "• states, is founded on matter of fact. " In the hands of Great Britain are gathered together and held *' many powers, Avhich thev have not been accustomed hitherto " to feel and to exercise. 18 138 ADDRESSES. " No improper motives are intended to be imputed to that " government. But does not experience teach a lesson that *' should never be forgotten, that governments, like individuals, " are apt " to feel power and forget right ?" It is not inconsis- *' tent with national decorum to become circumspect and pru- ** dent. May not the government of Great Britaiui be inclined, *' in analizing the basis of her political power, to consider and " regard the united states as her rival, and to indulge an improper "jealousy, the enemy of peace and repose ? " Can it be politic^ in any point of view ^ to make the united states " dependent on any nation for supplies^ absolutely necessary for *' defence^ for comfort^ and for accommodation P " Will not the strength, the political energies of this nation, be *' materially impaired at any time, but fatally so in those of diffi- " culty and distress, by such dependence ? " JDo not the suggestions of wisdom plainly show, that the se- " curity^ the peace^ and the happiness of this nation depend on " opening and enlarging all our resources^ and drawing front *' them whatever shall be required for public use or private accom- " modation ? " The committee, from the views which they have taken, con- " sider the situation of the manufacturing establishments to be *' perilous. Some have decreased, and others have suspended ** business. A liberal encouragement xuill put them again into " operation with increased powers ; but should it be withheld^ they " will be prostrated. Thousands will be reduced to want and '•'■wretchedness. A capital of near sixty millions of dollars will " become inactive^ the greater part of -which will be a dead loss to *' the manufacturers. Our improvidence may lead to fatal con- " sequences: the powers, jealous of our growth and prosperity, " will acquire the resources and strength which this government " neglects to improve. It requires no prophet to foretel the use *"• that foreign powers will make of them. The committee, from *' all the considerations which they have given to this subject, *' are deeply impressed with a conviction that the manufacturing *' establishments of cotton wool are of real utility to the agricul- *' tural interest, and that they contribute much to the prosperity *' of the union. Under the influence of this conviction, the com- " mittee beg leave to tender, respectfully, with this report, the " following resolution : " Resolved^ That from and after the 30th day of June next in " lieu of the duties now authorised by law, there be laid, levied, " and collected on cotton goods, imported into the united states, *' and territories thereof, from any foreign country whatever, " per centum ad valorem, being not less cents per " square yard. ADDRESSES. 139 " Report of the committee of commerce and manufactures on the " memorials and petitions of the manufacturers of wool — " March 6, 1816. " The committee of commerce and manufactures, to which " were referred the memorials and petitions of the manu- " facturers of wool, respectfully submit the following RE- " PORT— . " The committee having given this subject all the considera- ** tion that its importance merits, beg leave to present, with due " respect, to the house, the result of their investigation. " The correctness of the following estimate the committee are " no wise disposed to question : " Amount of capital supposed to be invested in buildings, machinery, &c. !gl2,000,000 " Value of raw material consumed an- nually 7,000,000 " Increase of value by manufacturing, 12,000,000 " Value of woollen goods manufactured annually, Sl9,000,000 « XT u r ^ A § Constantly, 50,000 « Number of persons employed, | Occasionally, 50,000 100,000 " The committee having, in a report presented to the house " on the 13th of February last, on the memorials and petitions " of the manufacturers of cotton, expressed their opinion on the " policy of fostering manufacturing establishments, consider " themselves relieved from the necessity of repeating the same " arguments. Every reason then urged for sustaining the cotton " manufacturing establishments, applies with equal force in fa- " vour of the woollen. The committee, influenced by the same " reasons, feel themselves bound to accord the same justice to " the manufacturers of wool. " The following resolution is, therefore, with due respect, " submitted to the house. " Resolved^ That from and after the 30th day of June next, in " lieu of the duties now authorised by law, there be laid, levied, " and collected on woollen goods imported into the united states " and territories thereof, from any foreign country whatever, " per centum ad valorem. " A memorial presented to the Senate of the United States^ Janu~ arj/ 7,1818. " To the honourable the Senate and House of Representatives " of the united states, in congress assembled, the petition of 140 ADDRESSES. " the inhabitants of the county of Oneida, in the State of New " York, as well manufacturers as others, Ri^sPECxruLLY " Sheweth : *' That the above county contains a greater number of manu- *' facturing establishments, of cotton and woollen, than any covm- " ty in the state, there being invested in said establishments at " iea^t 600,000 dollars. " That although the utmost efforts have been made by the pro- " prietors to sustain those establishments, their efforts have prov- " ed fruitless : and more than three-fourths of the factories re- *' m.ain necessarily closed, some of the proprietors being whol- *' ly ruined, and others struggling under the greatest embarrass- "ment. " In this alarming situation, we beg leave to make a last ap- " peal to the congress of the united states. While we make thisap- '' peal, at the present crisis, the extensive embarrassments in most *' oi the great departments of industry, as well as the peculiar **■ difficulty in affording immediate relief to manufacturers, are " fully seen and appreciated. Yet your petitioners cannot be- *' lieve that the legislature of the union zvill remaiii an indijfferent *•■ spvctator of the xvide-sprtad ruin of their felloiv citizens^ and *' look on^ and see a great branch of industry^ of the utmost impor- *' tanee in every community ^ prostrated under circumstances fatal *' to all future attempts at revival^ without a further effort for re- *■'• ;> hf. We would not magnify the subject, which we now pre- "•sent to congress beyond its just merits, when we state it to be *' one of the utmost importance to the future interests andwel- *' fare of the united states. " Before we proceed farther, and at the very threshold, we " disclaim all legislative patronage or favour to any particular *' class or branch of industry at the expense of the other classes " of the community. We ask of congress the adoption of no *' measure for the relief of manufacturers, which is not deemed " consistent with sound national policy, and the best interests of " the united states at large. But if a compliance with our pray- " ers be the dictate of wisdom, and for the public good; if our *' application be justified by the examples of all wise and pa- ^ *' trio ic states ; if no government of modern Europe is so short- '' sighted^ or regardless of its duties^ as not to constantly xuatcli " over^ and yield a steady and protecting support to the manufac- *•'■ turers of the state^we humbly hope this appeal in behalf of *' American manufactures will not l.e made in vain. '^ That clothing for our citizens in peace, and our army and *' navy in war, are indispensable, and that the necessary supply " should be independent of foreign nations, are positions that *' will be controverted by none. The last war afforded most "lamentable proof: your soldiers, exposed to the inclemencies ADDRKSSKS. 141 ^' of a northern climate, were at times found fighting in the " ranks ahnost naked. It will not escape observation, that na- '^ tional collision and hostility are most likely to arise with " that nation from Avhich our supplies are principall} derived, " and that the operations of war must be prosecuted on the " ocean ; hence, regular supplies being cut off, smuggling, viola- '' tions of law, with all the concomitant evils exptnenced in the '•'■ late 71'ar, are the certain consequences. The same disgraceful " scenes are to be acted over and over again, to the deep re- *•' proach of the country. JJ the presrnt manufactories are snjfer- " cc! to fall ^ the governynent xvill look in vain for means to avert " those calamities. Surrounded with many embarrassments, " government, during the war, saw fit to encourage manufactur- " ing establishments ; and those who embarked their capital, it " is humblv conceived, were warranted in the expectation of "• such continuing support of government as should protect their " interest against that foreign rivalship and hostility which is " now operating to their ruin. They had a right, as they con- '' cei . e, to expect this from what the government owed to itself, " and to the independence and best interests ot the country, as " well as from the example of other nations in like circumstan- *' ces. '• In reviewing the discussions on this great question, your " petitioners feel themselves justified in saying, that the question " has not been at all times fairly met on its true merits. We " have been constrained to witness alarm sounded, as though a " new principle was to be introduced, and the country now for " the first time, taxed for the mere benefit of manufacturers. — " What can be more untrue and unjust ? We need not remind the " honourable the congress of the united states of what is known " to all, that from the first establishment of the government, spe- '*• cial regard has been had, in laying imposts and taxes, to the " protection of domestic manifactures^ by increasing the duties on "• imported articles coming in competition. Again, the tariff, " in protecting manufactures, has been represented as taxing the " farmer and planter for the benefit of the manufacturer ; and " hence, attempts have been made to excite popular prejudice " against the latter. We need not dwell on this topic, in show- " ing how unjust to individuals, and injurious to the country the " charge is. As it respects the manufacturing districts of the " united states, there is no distinct class of manufacturers, no " separation of the manufacturer and farmer ; it is the farmer " himself who is the manufacturer ; he invests his money in man- '•'• ufacturing stock. With the exception of a few factories, in ' or near the great towns, by far the greater part of manufactur- " ing stock will be found in the hands of the farmers. *' Between different districts or states, one manufacturing and 142 ADDRESSES. " the other not, a difFerent question arises, which resolves itself " into a mere equality or apportionment of taxes on the diifer- " ent parts of the union : and here it will be seen, on a view of " the whole system of imposts and taxes, that no injustice is " done, as the manufacturing districts have^ and still do^ contri- '■'• bute their full proportion to the public treasury . Of the in- " ternal taxes, it will appear, that they have paid an amount ** greatly beyond the numerical standard or rule of apportionment " prescribed by the constitution. The fact is not here mentioned " for the purpose of complaint ; but to show how fallacious ** it is to select the duty on a particular article, to settle the *' question of equality in the general apportionment of taxes. — " We might again confidently appeal to the tariff of impost, and " ask if the duty is not greater on many articles than on import- " ed cloths (with the exception of certain coarse and almost use- " less cottons of the East Indies.) This is believed to be the " the case with most of the specific duties, and eminently so in " some instances. Were the government to proceed much far- '* ther than is now contemplated, and bestow premiums for the " encouragement of particular branches of industry, examples to "justify the measure would be found in the wisest and best ad- " ministered governments. While the provision in the constitu- " tion prohibiting any duty on exports^ favours the great staple " productions of the south, it injures the domestic manufacturer, " and is subversive of the great principle adopted by most na- *' tions, to restrain the exports of the raxv material necessary ifi " manufactures. But neither of this provision do your petition- " ers complain. " We hope to find excuse in the importance of the subject, for " submitting to the consideration of congress the following " principles of political economy, which have been adopted by " the most enlightened governments, and are deemed not alto- " gether inapplicable to the united states. " That the public good requires of government to restrain by " duties^ the importation of articles which may be produced at " home^ and to manufacture as much as possible of the ratv mate- *■'■ rials of the country. " That the branches of industry^ particularly necessary or use- *■'■ fulto the independence of the community^ ought to be encouraged " ^y government. " That the most disadvantageous commerce^ is that which ex- '■'^ changes the raxv material for manufactured goods. " That any nation -which should open its ports to all foreign im- '■'■portatio?is, without a reciprocal privilege^ would soon be ruined " by the balance of trade. " The policy of Great Britain, in support of which, no wars " however bloody, no expense, however enormous, are too great \ ADDRESSES. 143 "a sacrifice, ought never to be lost sight of by the united states. " That nation assumes to munujactiirefor all nations^ bid will re- *■*■ ceive the inanufactures of none. So tenacious, so jealous is ** she of the first dawnings of manufactures elsewhere, that she " binds even the hands of her own colonists. The jealousy of *' parliament was excited, nearly a century ago, by the petty hat *' manufactory of Massachusetts ; and an act of parliament actu- " ally passed in the reign of George the Second, prohibiting the " erection of furnaces, in British America, for slitting iron. " The great Chatham, the least hostile to British America, of " British ministers, in his speech in the house of Lords, on the ** address to the throne, in 1770, expressed his utmost alarm at " the first efforts at manufactures in America. " Mr. Brougham, a distinguished member of the British par- "liament, recently declared in his place, that it was well worth '* while, at the close of the late war, to incur a loss on the expor- *' tation to the united states, in order to stifle in the cradle our ** rising manufactures. It is in vain for any man to shut his " eyes against the active rivalship and persevering hostility ot " British manufacturers : and when the capital, the deep-rooted *' establishments, the improved machinery, and the skill of the " British manufacturer, protected as he always is by the govern- " ment, are considered, it ought not to excite surprise, that the " American manufacturer, without the support of his government, " is found unequal to the contest. But yielding to manufacto- ** ries reasonable support in their infancy, the government will, *' at no distant period, find them able to defend themselves " against foreign competition and hostility, and at the same " time, make ample returns to the nation for its protecting kind- " ness. " It was the opinion of Mr. Hamilton, former secretary of the " treasury of the united states, as well as of sir James Steuart, " thatno new manufactory can be established., in the present state " of the world., without encouragement from government. *•* It cost the English parliament a struggle of forty years., com- " mencingin the reign of Edward III. to get the better of the estab- " lished manufactures of Flanders. It is believed that much less *' encouragement from government would place the manufactures " of the united states on a secure foundation. While the writers " of that nation are seen to highly commend the principle ot " Adam Smith, that industry ought to be left to pursue its own " course, without the interference of the legislature, the govern- " ment has., at all times., and under every vicissitude., turned a deaf " ear to the lesson., as though it were intended for other 7iations ; ^'' and carried legislative regulations into every department and " avenue of industry. The British statute book groans under " these regulations. The policy of the government has proved / 144 ADDRESSES. " triumphant ; immeasurable wealth flowed in upon the nation, " giving it a power and control over other nations never before " attained, nor so long enjoyed, by any people so inconsiderate " in numbers. " But let no one imagine that a general system of manufac- " tures is now proposed to be introduced into the united states. " We would be understood as limiting our views to the manu- " factories already establisiied ; to nave those zvhich have not al- "■ ready fallen^ from the ruin zvhich threatens them. " After all that the present manufactories can aupply^ there zvill " remain to foreign importation an amount^ it is believed^ eqwd^ if *' not exceeding the mciins of the country to pay for. That im- " portation, let it be reiuembered, will be mostly from a country " which shuts her ports against the productions of the united " states, and keep them so unless the necessities of her manufac- " tories, or hunger and sedition open them ; and then the fatal *' suspension often proves, as the experience of the ill-fated ship- " pers of bread stuffs, the present year, will attest, a mere decoy "to ruin. Lord Sheffield, in the year 1783. declared that ex- " cept in time of war, there never was a market for American " wheat in Great Britain, exceeding three or four years in the " whole. " There was a time when a balance of trade, believed in both " countries to be generally against the united states, was, in " some degree, satisfied or counter-balanced by a favourable " trade with the West Indies : but a recent change of policy in " the British councils has cut off that resource, and the parent " state prefers exposing her colonies to starving, rather than *' open her ports to American commerce. " It is obvious how much that government presumes on its " advantages over us, on the predilection of our citizens for " British manufactures, and the influence of the liberal pur- " chases in the south, of the material for her cotton manufac- " tures. "■ We hope to be excused in repelling the unwarrantable im- " putation bestowed on manufactories of woollen and cotton as " being injurious to the health and morad valorem. Tar, Plums, and one Turpentine, Peaches, tenth. Pork, Onions, Beef, Butter, &c. &c. Protecting Duties on agricultilral productions . Wheat, B rley, Oats, Rye, Rice, Flour, Indian corn, Tobacco, Beans, Cheese, 9 cents ") Cotton, 3 cents J per lb. Hemp, 150 cents, per 112 lbs. We trust it will be admitted, that the fruits of the earth, raised by hard labour, to which machinery cannot afford any aid, are better protected by a duty of fifteen per cent, than cotton fabrics, in which the rival manufacturers have such immense advantages by machinery, would be at forty — and more particularly than linen and silk are protected by a duty of sixteen and a half, and pottery by twenty two per cent. The duties on cheese, cotton, and hemp, deserve particular attention. They are fair examples of the system of protection, which the manufacturers have sought in vain. Cents. Gloucester cheese is sold in England at about lOd. equal to 18 1-2 Cheese in Holland averages about 25 guilders per 100 lbs. equal per lb. to 10 In France it is about 76 cts. per killogram, or 112 lbs. English, equal to - - - - - -13 Thus English cheese pays a duty of about 50 per cent. — Dutch 90 — and French 70 — averaging on the whole 70 per cent. This is very nearly equivalent to an absolute prohibition. In the East Indies, cotton is sold at from three pence to seven pence sterling per lb. or an average of about 10 cents. The dv\t\ is three cents, which is thirty per cent. Nothing but the great distance from Hindostan, and the con- sequent heavy expense of ti-ansportation, could prevent the cot- ton planter from sharing the lamentable fate of the cotton manu- facturer, and being driven out of his own market, even Avith a duty of 30 per cent, on the cost of the article. Attention to the culture in the East Indies, with the advantage of having gained possession of the seeds of our best species, render it almost cer- tain that the cotton planters will at no distant day, be under tlic same necessity of soliciting prohibitions or prohibitory duties, as the cotton and woollen manufacturers were in 1816. We hope when they do thus applv, they will be treated with more atten- 150 ADDRESSES. tion, and their application be more favourably received thaa those of the manufacturers were. We hope for this result not merely for their sake, but for the general prosperity of the na- tion. Hemp is sold in Russia at about 110 dollars per ton. The duty is, therefore, about 26 per cent. We flatter ourselves, therefore, that it will be readily concer ded, that agriculture is protected. Except on the three articles last enumerated, the duties are, it is true, moderate. But they are very far higher in proportion to the chance of competition, than most of the duties on manufactured articles. Should an increase of duties, however, be necessary, we trust it will be adopted, and without opposition. That the merchants have enjoyed a large portion of the fos- tering care and protection of congress cannot be doubted. The statute book is full of laws enacted for their benefit. They have always had powerful advocates on the floor of that body, who never failed to urge their grievances with eloquence, and to pro- pose the proper remedies. They were ever heard with attention, and their requests generally accorded. We annex a list of some of the laws passed in their favour. I. 1789. An act passed at the outset of the government for regulating tonnage which imposed 30 cents on American built ves- sels, owned in whole or in part by foreigners ; and 50 cents on foreign vessels ; while vessels belonging to the united states were subject only to six cents.* II. 1789. In order to secure to our merchants the whole of the China trade to and from this country, a decisive advantage was given them as may be seen by the following contrast — Duties oil teas Imported from China.t In Ami-rican vessels. Cents. In foreign vessels. Cents. Bohea tea - - - - Per lb. Souchong and other black teas - Hyson All other gi'een trees - - - - 6 10 20 12 15 22 45 27 This immense difference of duty, however, does not at present exist — but there still remains sufficient to shut out foreign ri- vals, viz. Existing duties on teas imported from China. In American vessels. Cents. In foreign vessels. Cents Bohea . . - . Per lb. Souchong' and other black Hyson and Young Hyson . - - Hyson skin and other green Imperial, Gunpowder, and Gomee 12 25 40 28 50 14 34 56 38 68 * Laws United States, vol. ii. p. 6, t lb. 3, 4. ADDRESSES. 151 III. 1789. A discount often per cent, allowed on all import duties upon goods imported in vessels built in and owned by citizens of the united states, or in foreign vessels owned by them.* IV. 1789. Five cents bounty on every quintal of dried, or barrel of salted fish, and on every barrel of salted provisions.! V. 1789. Fifty cents per ton on each entry, laid on all vessels not built within the united states, or owned by a citizen or ci- tizens, employed in the transportation of the produce or manu- factures of the united states coastwise ; whereas American ves- sels paid but once a year.^ V i . 1 792. One dollar and a half per ton bounty allowed on ves- sels engaged in the fishery, if of twenty tons and below thirty — and two dollars and a hall, if above thirty tons. One dollar per ton on all fishing boats above five and below twenty tons.§ VII. 1794. Ten per cent, additional on the duties upon goods imported in vessels not of the united states |) VIII. 1802. An act for the protection of the seamen and commerce of the united states against the Tripolitan cruisers.^! IX. 1804. An act further to protect the commerce and seamen of the united states against the Barbary powers.** By this act an additional duty of two and a half per cent, ad valorem was imposed on goods imported in American vessels — and ten per cent, additional on the duties upon importations in foreign ones. One million of dollars were appropriated for the purpose of carrying on the war against the Barbary powers. X. 1812. An act for imposing ten per cent, extra on the du- ties upon goods, wares, and merchandize imported in vessels not belonging to the united states ; and likewise laying an addition- al dut^' of one dollar and a half per ton on all such vessels. ff^ XI. 1813, An act tor paying a bounty on the exportation of pickled fish, and on all vessels employed in the fishery. j|(| XII. 1817. An act subjecting to a tonnage dutv of two dollars per ton, all foreign vessels arriving from ports to which vessels of the united states are not allowed to trade. ^i^ XIII. 1817. An act prohibiting the importation of all goods, wares, and merchandize in foreign vessels, except those of the nation in which they are produced ; prohibiting, under penaltv of forfeiture, all vessels, belonging in whole or in part to foreign powers, from carrying on the coasting trade, and limiting the bounties on the fisheries to vessels of which the officers and three fourths of the crews are citizens of the united states.§§ XIV. 1817. An act prohibiting the importation of plaster of Paris from any country, or its dependencies, from which the * Laws of the united states, vol. ii. p. 5. f Ibid. + Idem p. 6. § Idem, p. 242. || Idem, p. 437. 1 1dem, iii. p. 447. ** Idem, p. 613. ft Idem, vol. iv. p. 46U. HI Idem, p. 584'. n Idem, vol. vi. p. 200- §§ Idem, p. 213. 152 ADDRESSES. Vessels of the united states are not permitted to bring that ar- ticle.* XV. 1«18. An act prohibiting the entry into our ports of any vessels belonging to subjects of his Britannic majesty from any port or place in his colonies that is closed against vessels of the united state s.f XVI. American vessels entering from any foreign port or place, pay ---___ per ton^ lenU 6 All foreign vessels from ports where the American flag is not interdicted - - _ - - per on^e its 100 Dutch vessels from places where the American flag is inter- dicted:}: ---_.- ptr ton ^ cents 225 The narrow limits we are obliged to prescribe to ourselves prevent us from enLirgi^ig on the above list. A cursory view of it will satisfy the reader how undeviating an attention has been paid to the subject — and that no opportunity has ever been lost of counteracting the hostile policy of foreign nations, when directed against the mercantile interest. The coasting and China trade were fully and completely se- cured to our merchants, the first by absolute prohibition, and the second by duties undeniably eqv.ivaient to a prohibition.—*- And whatever measures were necessary to secure them their full proportion of every other trade, have been adopted. The specious complaint of" nacr'ijicin^- the interests of the many for the bcnrfit of the few ^'' with which the papers have been filled, and which has furnished such a fertile thesne to orators in congress and newspaper writers, was never heard, even in a whisper, in the case of the liberal protection afforded to the mercJiants. No. — It was reserved to defeat the just demands and expectations of the manufacturers. In those laws, and others of similar character to be found in our statdte books, we behold a spirit worthy of the representa- tives of a great nation, determined to guard the interests of a respectable portion of their constituents — and affbrdnig an am- ple and adequate protection, which completely guaranteed the promise it held out. The miserable idea of sacrificing native wealth, industry, and talent — of hiring or purchasing vessels, ac- cording to Adam Smith's destructive theory, " xvhere they could be had the cheapest^'' was spurned with the contempt it deserv- ed. Those wise laws, which do honour to the legislature of the united states, saved the navigation of this country from destruc- tion. But for them, our shipbuilders would have been ruined, as so large a portion of the cotton and woollen and other ma- nufacturers have been — and our shipping would have rotted in * Laws of the united states, vol. \\. p. 227. f Idem, \ Tariff, p. 25. ADDRESSES. 15S our ports, while our navigation was carried on by foreigners, as so large a portion of our clothing is now manufactured by them. A statement of the results of this wise policy, cannot fail to be satisfactory — In 1789 the British vessels which entered inwards in Great Britain, engaged in the trade of the united states, were ... . - 253 Those cleared for the umted states- - - - - . - - 358 In 1799 those that entered inwards were only - - - - 42 Outwards . - - .- . - - - 57 In 1790 the American vessels engaged in the British trade were only - 464 In 1800 there were 1057* " In 1806, 561 vessels engaged in the trade of the united ** states, entered inwards in Great Britain ; of these onlv 56 were " British. " In the same year, of 575 entered outwards, only 39 were " British."! Under this fostering system, the tonnage of the united states made a more rapid progress than ever was made by that of any other nation in the world. Tons. In 1789 it was 201,562 1790 - 478,377 1792 - - ----- 564,437 1794 - 628,816 1796 - - - - - - 831,700 1798 - 898,328 1801 - 1,033,218^ The contrast between the magnanimous spirit that presided over those laws— and the miserable and blighting spirit that dic- tated, in 1 790, five per cent, on all manufactures of flax, hemp, silk, cotton, wool, brass, cutlery, iron, steel, tin, lead, wood, china, pottery, and stone, in order to enable us to '' buy goods •where they could be had cheapest^'' is as astonishing as it is la- mentable. On the one side we see a dignified policy, honoura- ble to the nation — and on the other a policy unworthy of a ris- ing empire, which has produced the most disastrous conse- quences. A few lines more on the subject of the protection of com- merce. The navy of the united states, which has been created chiefly for that purpose, has cost in 20 years above 56,000,000 of dollars. Ij The last war with Great Britain, which arose whoUy * Seybert's Statistics, p. 295 f Ibid. % Idem p. 317. » 1! Idem 713, and Weekly Register. 20 154 ADDRESSES. firom the duty of protecting commerce, cost, exclusive of the na- val department, §52,000,000.* The expense of foreign intercourse, that is, for ambassadors^ charges des affaires, consuls, agents, bearers of despatches, &c. Stc. for twenty-four years, have been 10,872,424 dollars, or ahove 450,000 dollars per annum,f and for the Barbary powers, in twenty years, 2,457,278 dollars, or above 120,000 dollars per annum.:]: Thus, in these two items, there is a ponttive disburse^ mejtt^ for the protection of commerce, of 570,000 dollars annu- ally : whereas, the government has never paid one dollar, as bounty or premium, to foster, protect, or promote the produc- tive industry employed in manufactures ; and has rarely impos- ed any duties beyond what was called for by the exigencies of the treasury. It is painful to state, but candour calls on us to state, that a portion of the merchants, who have thus enjoyed such a high de- gree of care and protection, bestowed at such enormous expense, have too generally been averse to affording adequate protection to their fellow citizens, engaged in manufactures ; for which im- policy they now suffer in common with the manufacturers, by the consequent universal calamity of the times and impoverish- ment of the country. Let us now turn from the fostering care bestowed on com- merce — the various statutes enacted in its favour— the expense incurred for that purpose — and the complete protection it has ex- perienced, to the situation of the manufacturer. Has he had his equal share of the care and attention of government ? No. The paternal guardianship of their own manufacturers, generally exer- cised by other governments, shuts him out of nearly all the fo- reign markets of the world. And the impolicy of our system leaves him at home at the mercy of rivals from every quarter of the globe, who, availing themselves of the advantage of superior capital, and their own governmental protection, vanquish him in his own market, and reduce him to bankruptcy. That the manufacturers, particularly those of cotton and wool- len fabrics, have not been protected from foreign rivalship — that they have been victims of an inadequate tariff, is palpable from the immense quantities of rival foreign articles with which our markets have been inundated ; from the ruin of so many respect- able citizens who invested large capitals in manufacturing esta- blishments ; and from the great proportion of those establish- ments, which are wholly suspended in their operations ; many of which have been sold for 20, 30, or 40 per cent, of the first cost. Of these facts the proofs are within the knowledge of the great mass of our citizens. They admit neither doubt nor denial. * Seybert's Statistics, p. 716. -j- Idem 713. ^ Ibid, ADDRESSES. 155 Thus, while the manufacturer appears to enjoy the advantages of a free government, he is, we repeat, incontestibly in a worse situation, so far as respects the acquisition of property and pro- tection of industrj^ two principal objects of good government, than the subjects of the monarchs of Europe, whose situation he must regard with envy. The English, the French, the Russian, the Austrian, and the Danish manufacturers are generally se- cured in the home market. There is but one way to account for the care bestowed on the commercial, and the neglect of the manufacturing interest. The former has been at all times well represented in congress, and the latter never. It is, as we have observed on a former occa- sion, nearly as much unrepresented in that body as this country in its colonial state was in the British parliament. A CONTRAST. The Agricidturist. The JSfaiiiifactnrer. The Merchant. With hardl}- an excep- Shut out of nearly all The coasting trade se- tion, secured in the home the foreign markets in the cured to him by absolute market. Nearly all the world, and beaten out of and unqualified proliibi- foreign markets in tlie his own for want of ade- tion. Every possible ad world open to him. quale protection. vantage that the govern- ment can give, afforded to his shippnig in the fo- reign ti*ade. We appeal, fellow citizens, to your candour, to your justice, whether there can be a reason why the farmer should be pro- tected by duties, which, in most cases,* are nearly equal to pro- hibitions — and the merchant have the coasting and China trade secured to him, the former by absolute prohibition, and the lat- ter by duties equivalent to prohibitions ; while there is no one vianujacturecl article whatever prohibited^ and while the cotton and woollen manufacturers (to pass over others) are sacrificed to foreign rivals, by the utterly inadequate duty of twenty-se- ven and a half per cent ?f This is a vital point — and demands the most serious reflection. The v/hole question at issue may be said to turn on it. We put it to the understanding of our fellow citizens throughout the union — and to the consciences of the members of congress. If any adequate reason can be as- signed for this very unequal distribution of protection, let it be proclaimed, in order to silence complaint. That several extensive establishments have survived the ge- * Hemp, as already stated, pays about 26 per cent. — cheese 70 — cotton 30 — and all other agricultural productions 16^. It is obvious that the latter duty is far more effectual than 50 per cent, would be on pottery, glass bottles, or hnen — the two first of which are subject to only 22, and the last to 16^ per cent. We might go on witli the enumeration and comparison to a great extent, but deem it unnecessary. f Cottons, below 25 cents per square yard, are effectually protected. 156 ADDRESSES. neral wreck — that they are still in profitable operation — is no disproof of our allegations. Their proprietors have generally had some peculiar advantages in point of capital or long esta- blishment, that saved them from the fate of the others. But supposing that the prohibition of the coasting trade had not been enacted — that it had generally fallen into the hands of foreigners ; but that twenty or thirty of our merchants were able to svipport themselves by that portion of it which foreign rivalship left them, would that be admitted for a moment to disprove the ruin of the hundreds of others who had fallen sa- crifices ? We are persuaded that very few of our citizens attach an adequate degree of importance to the industry of the manufac- turing class of the community, and that it is prodigiously un- derrated. To form a correct estimate of it, requires to enter into minute calculations, which have rarely been made. It never could have been supposed, without such calculations, that the cotton fabrics, produced by 100,000 manufacturers in 1815, amounted to more than one half of the whole value of the do- mestic exports, of every description, of that year ; which is nevertheless the fact, as will appear in the course of this address. In order to aid you, fellow citizens, in comparing the products of manufacturing and agricultural industry, we submit a table of the exports of the united states for the year 1815, extracted from the returns of the Secretary of the Treasury. We have annexed in the second column, a statement of the population of the several states according to the census of 1810 ; and in the third column, an estimate of what was the probable population in 1815, assuming, an increase of only 15 per cent, far the whole period. ADDRESSES. 157 Domestic exports and population of the united states for 1815. Domestic Ex- Supposed STATES AND TERRITORIES. pons, 1815. by Ceusus of Vopiilation 1810. 1815. Dollars. Massachusetts ... 3,547,463 700,745 805,856 New-Hampshire . . - 101,203 214,460 246,629 Vermont .... 161,002 217,895 250,479 Rhode -Island 357,684 76,931 88,470 Connecticut .... 383,135 261,942 301,233 New-York - . . - 8,230,278 959,u49 1,102,909 New-Jersey . . . - 5,279 245,562 282,396 Pennsylvania 3,569,551 810,091 931,604 Delaware .... 105,102 72,674 83,575 Maryland .... 4,086,274 380,546 437,627 Virginia 6,632,579 974,622 1,120,815 Ohio 230,760 265,371 Kentucky .... 406,511 467,487 North-Carohna 1,012,967 555,500 638,825 Tennessee .... 261,727 300,986 South-Carolina ... 6,574,783 415,115 477,382 Georgia 4,146,057 252,433 290,297 Orleans .... 76,556 88,039 Mississippi ... 2,573 40,352 46,404 Louisiana .... 5,055,858 20,845 23,972 indiana ..... 24,520 28,198 Illinois .... 12,282 14,125 Michigan .... 36;909 4,762 5,476 District of Columbia . 1,965,626 24,023 27,662 45,974,323 7,239,903 8,326,281 Same table differently arranged. STATES. Assumed Population 1815. Domestic Ex- ports. 1815. Exports per head. Massachusetts ... Connecticut .... New-Hampshire ... Vermont .... Rhode-Island ... New-Jersey .... 805,856 301,233 246,629 250,479 88,470 282,396 ^3,547,463 383,135 101,203 161,002 356,784 5,279 ^4,40 1,27 41 64 4,03 02 1,975,163 4,554,866 2,30 "New-York .... Pennsylvania ... 1,102,909 931,604 8,230,278 3,569,551 7,46 3,83 2,034,513 11,799,829 5,95 158 ADDRESSES. STATES. Asfiumt-d po- pulation 181S Exports 1S15. Exports p. :■ head. Delaware . . . - Maniand .... Virginia North Carolina ... District of Columbia 83,575 437,627 1,120,815 638,825 27,626 ^105,102 4,u86,274 6,632,579 l,vl2,967 1,965,626 |gl.2j 9.33 5.91 1.58 71.15 2,308,468 13,802,548 5.9S South Carolina ... Georg-ia . . - . 447,382 290,297 6.574,783 4,146,05 13.77 14.28 767,679 10,720,84 13.95 Ohio Kentucky .... Tennessee - - - - Louisiana . . . - 265,371" 467,48: 300,986 23,97r 1 )>6055858 j 4.78 1,057,816 1,057,858 4.78 It appears, on an examination of the preceding tables, that, The average exports of the whole union, per head, were about - - - - - - ^5.62 Of New Hampshire, Vermont, Massachusetts, Rhode Island, and New Jersey - - - ^2.30 Of New York ----- 7.4.6 Of Pennsylvania - - - - 3.83 Of Delaware, Maryland, Virginia, District of Colum- bia and North Carolina . . _ _ 5.95 Of South Carolina, and Georgia - - 13.95 Of Ohio, Kentucky, Tennessee, and Louisiana - 4.78 Whereas the surplus of the labour of 100,000 cotton manu- facturers in that year beyond the price of the raw material and the wages, was ^1,200,000 or 1^12 per head. This appears by a report submitted to congress by the committee of commerce and manufactures, Feb. 13, 1816, which states that there weire in the preceding year, about 100,000 persons employed in the united states in the cotton manufacture, viz. — 10,000 men, 66,000 women and female children, and 24,000 boys.* Who used Containing - - - Amounting, at 30 cents, to And producing of cotton fabrics Averaging 30 cents per yard Estimating the wages at ^150 per annum * See supra, pp. 131, 132. bales of cotton 90,000 pounds 27,000,000 $ 8,100,000 yards 81,000,000 24,300,000 g 15,000,000 ADDRESSES. 159 Result. Gross amount of articles manufactured - ^24,300,000 Cost of Cotton > . - _ 8,100,000 Net annual gain to the nation on the labour of 100,(XK) manufacturers - . - g 16,200,000 This leaves a gain of one hundred and sixty two dollars per head, on the labour employed, let it be observed, on articles of low price. It is impossible to reflect on this statement, without being struck most forcibly with the extent of the advantages of this important branch. Analysis. I. The difference between the price of the raw materials, if exported, that is S8, 100,000 — and that of the manufactured arti- cles, — 824,300,000, — viz. g 16, 200,000, was clearly saved to the country. II. The amount of the goods manufactured, ^24,300,000, was more than half — and the amount thus saved to the country, Sl6,200,000, was more than one-third, of the value of the entire domestic exports of the united states for that year, which were only §45,974,403. III. A certain market was provided for the great staple of the southern states, the cultivation of which, were the manufacture duly protected, might be extended to double or treble its present amount. IV. The value of lands and the interest of the agriculturists in the vicinity of those establishments, were greatly advanced, by the supplies of provisions required for the support of the ma- nufacturers. The amount of the goods produced by the labour of these 100,000 manufacturers, viz. S24,300,(X)0 was I. Nearly equal to the whole of the domestic exports of Dela- ware, Maryland, Virginia, North Carolina, South Carolina, Georgia, and the district of Columbia, containing above 3,000,000 inhabitants. II. Considerably more than the whole of the domestic ex- ports of New Hampshire,Vermont, Massachusetts, Connecticut, Rhode-Island, New- York, Pennsylvania, New Jersey, Ohio, Kentucky, Tennessee, and Louisiana, containing above 5,000,000 inhabitants. 160 ADDRESSES. The money retained in the country by the labour of these 100,000 manufacturers, viz. ^16,200,000, was I. Nearly equal to the domestic exports of New York. Penn- sylvania, Ohio, Kentucky, Tennessee, and Louisiana, containing above 3,000,000 inhabitants ; and II. About equal to the domestic exports of New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New Jer- sey, South Carolina and Georgia, containing above 2,700,000 in- habitants. It may on a cursory view appear that we have gone into too much detail with these statements. But we trust that the mag- nitude of the errors prevalent on those topics, and more particu- larly the deleterious consequences these errors have produced on the prosperity of our country, as well as the probability of their continuing to produce a copious harvest, will fully justify us. Those immense advantages, produced by 10,000 men, 66,000 women and female children, and 24,000 boys, if duly appreciated by congress, would have led to a system widely different from the one pursued in the tariff. Such a source of wealth deserved to have been cherished with the utmost care and attention, which would have been amply repaid by the most beneficial re- sults. It may, and probably will, be demanded, if the advantages of this manufacture be so great, why have so many of those engag- ed in it been ruined ? The answer is obvious. The inundation of foreign articles, a large portion of which were sold at vendue, far below first cost, has so far glutted our markets, as greatly to limit the sale of the domestic fabrics, indeed almost wholly to debar them from a market, and produce ruinous sacrifices on those that are sold. Our manufacturers, moreover, in the event of an overstocked domestic market, have no foreign one in which to dispose of their superfluous goods. Whereas our markets are open for the superfluous goods of all the manufacturers in the world ! ! Ne- ver was there such disparity of advantage. We do not avail ourselves of the obvious advantage we might derive from the circumstance that a portion of the exports were manufactured, and in a highly finished state, and were of course at prices far beyond what they bore, when they came from the hands of the agriculturalist. In some cases the value was dou- bled or trebled. All this advance of price ought to be deducted from the total amount as reported by the customhouse, in order to carry on the comparison fairly, and do the argument justice. But we waive this advantage, great as it is, and admit the whole as if it had been in its rude state. ADDRESSES. IGl The situation of the four western states claims particular at- tention. Unfortunately there are no data on uhich to form an estimate of their exports individually ; such an estimate would be valuable, as it would more thoroughly evince the ruinous policy this country has pursued, by its pernicious effects on Ohio, Kentucky, and Tennessee. But in the deficiency of correct da- ta, V. e must rely on the best estimate that the case admits. From the extraordinary fertility of the soil of Louisiana, and the great value of its staples, we believe it will not be extrava- gant to suppose, that of the sum of 5,055,868 dollars exported from Ohio, Kentucky, Tennessee and Louisiana, th;;re was above a million and a half raised in the last state. This reduces the surplus of the other three, devoted chiefly to agriculture, and containing above a million of people, to three dollars and a half per head ! And from the immense distance from which a large portion of it is drawn, and the consequent heavy expenses, it is not extravagant to suppose, that it did not produce to the cul- tivator above 75 per cent, of this value — ^probably in many ca- ses not above 60 per cent. We submit, fellow citizens, a fair comparison of the proceeds of the labour of 50 000 persons employed in the culture of cot- ton, with that of the same number employed in its manufacture, in order more fully to establish the importance of the latter. Cotton is now about 16 cents per lb- at the manufactories ; — about 14 in the seaports of the states where it is raised, and can- not net the planter more than 13, deducting the merchant's pro- fits. That cotton will rise beyond this price is possible — but not probable. The prices in England, which must always regu- late our markets, are more likely to fall than to rise, from the improvement of the culture in the East Indies — the ardour Avith which it is pursued, — and the low price of labour there ; and in fact it would not be extraordinary, if, from the abundance of the East India supplies, the British market were, at no distant day, virtually closed to our cotton, as it has actually been by order of council to our flour. Culture of Cotton. Ten slaves, five of them capable of working in the field, the other five women and children, will produce of cotton annually about 10 fi. 8,500 At this rate 50,000 would produce - - lbs. 42,50{j.c)U0 Which, at 13 cents per /^.amount to - - §5,525 000 21 162 ADDRESSES. Manufacture of Cotton. We now proceed to state the situation and results of the Wai- tham cotton manufactory in the neighbourhood of Boston. It contains men -__---- 14 Women and children ------- 286 300 And produces, with power looms and other machinery, at the rate per annum of square yards of cloth ----- 1,500,000 Which at 25 cents per yard amount to* - - 1^312,500 Deduct 1500 bales, or 450,000 lbs. of cotton, at 16 cents per lb. - - 72,000 Annual saving to the nation by the labour of 14 ") ssoio ^oo men and 286 women and children, j ' For the correctness of this statement, fellow citizens, we pledge ourselves to the world. We defy contradiction. Let us now calculate the result of the labours of 50,000 men, women, and children, in the same proportions, and at the same kind of employment : As 300 : !g240,500 : : 50,000 : ^40,083,333.f That is to say, the clear saving to the nation by the labour of 50,000 persons, 2500 men, and 47,500 women and children, em- * [This was about the price of cottons, in 1819, the time when the present ad- dress was written.] •j- [Criticism and cavilling have exhausted themselves on this statement : but it is beyond their united exertions. The number of yards manufactured, and the number of persons who produced them, are both open to investigation and en- quiry, and will be found correctly stated. To test the calculations of the result is therefore within the capacity of a schoolboy. At the present prices of cotton goods, the result would be diiferent. I sub- mit a new calculation, assuming the same number of people, and yards of goods — ^but admit the average price to be 15 cents, instead of 25 : Square yards of cloth - 1,500,000 Amount at 15 cents per yard ....... !S225,000 Deduct 1500 bales of cotton, at 50 dollars per bale ... - 75,000 Annual saving to the nation - - - . . - - ^l^OjOOO As 300 : IS150,Q00 : : 50,000 : ^25,000,000 It thus clearly appears, that at the rate at which the Waltham factory has pro- ADDRESSES. 163 ployed in the cotton manufacture, would amount to above 40,000,000 of dollars annually, after paying for the raw material. The reason why the result of this calculation so far exceeds the proceeds of the labour of the 100,000 manufacturers, in 1815, as stated in page 158, is, that the machinery of the estab- lishment near Boston, has been brought to the last degree of perfection — and that the power looms, which afford immense faci- lities to the operations, were very rare in 1815. It cannot escape the attention of even a cursory observer, that all our calculations of the results of the cotton manufacture are predicated on low-priced fabrics — and that the profits on the high priced are far greater. A large proportion of those imported from Great Britain are of the latter description. This greatly enhances the profits of the manufacture. It results from hence that the work of 50,000 Manchester cotton manufacturers, principally women and children, would be able to pay for half of the exports of a nation, containing above 9,000,000 of people ! There are probably at this hour from 30 to 40,0(J0 persons skilled in this branch, idle in the united states, who could pro- duce, according to the preceding calculations, cotton fabrics to the amount of 15 to 20,000,000 of dollars annually, at the pre- sent reduced prices. What a lamentable waste of industry ! Who can ponder on these facts without astonishment at the impolicy of our system, which, under the auspices of Adam Smith, has sacrificed the labour of ten, twenty, thirty, forty, fif- ty, or sixty of our citizens for that of one foreign manufacturer ? If the absurdity were capable of being heightened, it would be by the circumstance, that the dearness of labour is so frequently assigned as an argument against our fostering manufactures. — But surely if our labour be so dear and valuable, we ought not to squander it away thus prodigally. Can it, therefore, be a subject of wonder, that we are an im- poverished nation — that we are drained of our specie — that our water power has been, by a bounteous heaven, lavished upon us in vain — that so many of our manufacturers are beggared and bankrupted — that our workmen are wasting their time in idle- ness — and that those artists and manufacturers, who, unfortu- nately for themselves, have been allured to our coasts, by our oeeded, 50,000 persons, if fully employed in the cotton manufacture, would ac- tually produce a clear saving to the united states of 25,000,000 dollars annually. And let it be distinctly observed that this production, however extraordinary it may appear, is in a less ratio by far, than the ratio of increase in En.8:land, The raw material in the above calculation, is allowed to cost one third of the value of the cloth : whereas, according to Colquhoun, the increase of the value of the manufacture is nearly five fold. See Colquhoun on the wealth, power and resources of the British Empire, page 91.] 1'64< ADDRESSES. excellent form of government, have eitlier returned to Europe, gone to Nova Scotia or Canada, or are obliged to resort to ser- vile employments to support existence ? We now submit to your consideration, fellow-citizens, an im- portant table of the imports of cotton into the British dominions, for seventeen years. I'he first fifteen are taken from Dr. Sey- bert's Statistics,* and the remaining two from the Journal of Trade and Commerce.f Table of the Importation of Cotton into Great Britain. Ainorican B.azil East India Oth;^r Sorts 1802. 107.4^, 74,7 ;t 8,.53.- No. of bags. !2SI.33 1803. 0S.831 76,M7 10,2Q6 ■15.474 101,103 48 588 85.385 241,63^ 1805. 124,270 51,242 1,083 75,116 252,620 1806. 124,030 51,034 7,787 77,978 261.738 1807. 1S08. 17!. -67' 37,672 13,081 50.442 ■'"'•'"' 11,409 12,512 35,764 S1.010| 67,512 103,511 232,657 168,138 440,332 389,605 79,i32 92.186 561,173 1811. 1812. 181,3. 37'7 ■.: 137,]6tl 1.4- 73,21 249,53r 1814. 1815. 1816. 166.077 123.450 30.670 49,235 369,432 1317. 198.917 114.816 117,454 47,208 478,395 1818. 205,881 181,087 247,604 50,878 655,450 American Brazil Eas! Indies Other sin'ts 128,102 118,514 14, '.46 64 73^^ 95.331 98.704 2,607 64,563 261,205 48,853 ; 50,930 1 5,048 74.8 00 287,6n 103.037 '^.955 22.357 52,840 270.189 No. of bags 326,141 To the intelligent cotton planter, this table furnishes matter for most serious and sober reflection. It seals the death warrant of the hopes which he lately cherished, of an increasing market and continued high prices in England — and, independent of all care and concern for his fellow citizens, engaged in the cotton manufacture, establishes the necessity of securing a steady mar- ket tor his raw material at home. The following analysis de- serves peculiar attention. I. The importation of American cotton has not quite doubled in sixteen years. II. East India cotton has in the same space of time increased 3000 per cent. III. United States cotton has increased but three per cent, in the lUst year . IV. East India cotton has increased in the same time 110 per cent.; and the total increase of importation in that year has been 55 per cent. V. Brazil cotton has more than trebled since the year 1808. Page 92. t Feb, 1819, page 113. ADBRESSES. 165 According to the report of the committee of commerce and manufactures, already quoted, the consumption of cotton in the united states in 1 805, was only - - bct^n 1,0'jO Bat in 1815, it rose to _ - _ 90,000 Containing . - - - lbs. 27,000,000 Such was the rapid increase of this manufacture, with no oth- er protection than that afforded by the war, in excluding foreign ri\alship. Dr. Se\ bert states that the greatest amount of cotton ever ex- ported from this country was 93,000,000 pounds in 1808.* The whole quantity exported in 1815, to all parts of Europe, was about 81,0 ;0,000 pounds. f It thus appears that the quantity actually consumed by our manufacturers in 1815, viz. 27,000,000 lbs. was equal to one third part of ail we exported in that year — and what is still more extraordinary, it was actually one-third purt of the -whole quanti- ty imported in the t,ame qear into England, the most manufactiir- inq- country hi Europe !\ And it will not, we trust, be doubt- ed, that a moderate degree of protection would have increased thi- home demand to such an extent as to consume nearly the whole. What inexhaustible mines of wealth, far beyond those of Golconda or Potosi, have we in our power ! How lamenta- ble a sacrifice have we made of them ! and how prosperous and happy should we now be, had we made a proper use of them ! In order to enable you, fellow citizens, duly to appreciate the ad\ antages that would have accrued from the manufacture of one half of the quantity of cotton exported in 1808, we submit a sketch of its results. Deducting one-sixth for waste, and supposing each net pound to make four yards, 45,000,000 lb. gross weight would produce 150 iu,000 yards ; which, at an average of 20 cents per yard, would amount to - - - - 30,000,000 From which deduct the price of the cotton, 45,0{J0,000 lb. at 30 - - 13,500,000 It would leave a clear saving to the nation, of Sl6,50U.00O * statistics, p. 92. "t-Idem, p. 152. + To these fiicts particular attention is requested. The imports of cotton intj Great Britain in 1815, were 270,000 bags : in 1816, 369,000 ; in 1817, 377,0^0 ; of which considerable quantities wei'e exported to the continent of Evn-ope. — Whereas the actual consumption in the united states in 1815 was, as before stat- ed, 90,u00 ba8;s ; a striking proof of the laudable enterpiize and industry of our citizens. 166 ADDRE&SES. The raw cotton exported from this country, in 1818, amount- ed to 6,457,335 lbs. of Sea Islands, and 86,013,843 lbs. uplands ; the former estimated by the treasury, at 60 cents, and the latter at 31 cents per lb. The total value, as stated in the trea- sury returns, was 1831,334,258. We offer a calculation of its re- sults in favour of Great Britain, supposing she had imported the whole. The reasoning will apply to France or any other coun- try, so far as a portion went there. Cost of 92,471,178 lbs. of cotton - 5S3 1,334,258 Deduct 15,411,863 for waste. Net lbs. 77,059,315 Yards, 308,237,260 at 25 cents - g77,059,315 National gain, 845,725,057 On this interesting result a long chapter might be written, ev- ery page of which would evince the great impropriety of our System, in the most glaring colours — and carry condemnation to the theory of Adam Smith and his followers. And the most extraordinary part of the affair is, that however enormous the national benefits appear, they are far below the reality — as the gain is only 150 per cent. ; whereas, by the indisputable au- thority of Colquhoun, the national profit of the cotton manufac- ture inEngland, is about 380 per cent. He states, that the cotton used in that country, in 1812, cost but - *^6,000,000 Whereas the manufactured goods amounted to 29,000,000 Of course the national gain was £23,000,000 Equal to above ^100,000,000 And this all-important manufacture, for which the united states are peculiarly adapted from the possession of the raw ma- terial, and capacity of producing it, to a boundless extent, has been half strangled by our tariff ! What agonizing reflections this view of the subject forces on the mind ! * Colquhoun on the Power and Resources of Great Britain, p. 91. ADDRESSES. 167 Having discussed the subject of the cotton manufacture, we proceed to take a view of the woollen, which is equally deserv- ing of the most serious consideration. By a report of the committee of commerce and man- ufactures, submitted to the house of representa- tives, March, 1816,* it appears that in the year preceding there was invested in the woollen branch a capital of . - - - §12,000,000 The raw material amounted to - gr,000,000 The value was increased by the manu- facture - - - S 12,000,000 Value of goods manufactured annu- ally 19,000,000 Persons constantly employed - 50,000 Occasionally . _ . 50,000 100,000 Analysis. I. By this manufacture, articles were produced in the united states, which would otherwise have been imported, to the amount of - - gl 9,000,000 Deduct price of wool, which, but for this branch, would have been exported - - 7,000,000 Clear saving to the country - - 12,000,000 II. Seven millions of dollars expended among the farmers, for the wool of about 5,000,000 sheep. III. A clear gain to the nation, by the labour of each person thus employed, of 120 dollars. The following table of the value of the national manufactures for the year 1810, will enable you, fellow citizens, to form a cor- rect idea of the importance of the subject. It is an estimate de- duced by Tench Coxe, Esq. from the marshals' returns, taken with the census of that year. It is probable that during the pro- gress of the war, they were increased to above §250,000,000. Maine §3,741,116 Massachusetts ------ 21,895,528 New Hampshire 5,225,045 Vermont ------ 5,407,280 Rhode Island 4,106,074 Amount carried over. §40,375,043 * Supra, page 139. 163 Connecticut New York New Jersey- Pennsylvania - Delaware Maryland Virginia Ohio Kentucky North Carolina Tennessee South Carolina Georgia Orleans Territory- Mississippi Territory- Louisiana Territory- Indiana Territory- Illinois Territory Michigan Territory- Columbia (District) i.Dt)S.£SS£S» Amount brought over ^40,375,043 r.771.928 25,370.289 7,054.594 - - - 33,691,111 1.733.744 11.468,794 15,263,473 2,894,290 - - . - 6,18 1, U24 6 653 152 3,611,029 3,623,595 3,658,481 1,222,357 419,073 200,000 300,000 120,000 50,000 1,100,000 Total, 18172,761,977 The repetition of objections to which we have already fully- replied, obliges us, fellow citizens, to resume topics which we had supposed exhausted. Among these, the most prevalent and popular is the extor- tion said to have been practised by the manufacturers during the war. This theme is hacknied from New-Hampshire to Geor- gia, not merely by men of little minds, and narrow views, with whom such an objection would be perfectly in character : but Hien of higher spheres of life, and superior order of mind and endowments, allow themselves to give it countenance. Even admitting it to have existed to the extent assumed, the inference drawn from it, to prevent adequate protection to ma- nufactures, would not apply at present ; as, according to the irre- fragable maxim of Alexander Hamilton, already quoted at full length, founded on fact and reason, *- the ititernal competition ■which takes place soon does awntf every thing like monopoly^ and reduces by degrees the price to the minimum of a reasonable projit on the capital employed? But we will suppose for a moment that the allegations are all just — and that the manufacturers of broad cloth sold, as we have already stated, at 13 or 14 dollars per yard, what cost them only 9 or 10. With what propriety, we repeat, can the ADDRESSES. 169 importer, who, at the same period, sold his goods at 50 or 100 per cent. be\ond the old prices — the planter who raised cotton at 10 or 12 cents per lb. and sold at 30, and would at 40, 50, or 100 — the merchant* who bought flour at 10 dollars and sold at 20 to 40 — reproach the manufacturer for an ad\ ance far less than that of which they availed themselves ? We pass over the inconsistency of such conduct, which is too palpable and gross to require comment : and we trust that the miserable spirit which would prefer the consumption of fabrics manufactured in Hindostan, because sold a few cents cheaper per yard, (and thus exhaust the wealth of the country to support a distant nation, while our fellow citizens, who invested millions of monev in manufacturing establishments, are bankrupted and beggared, and their workmen thrown for support on the overseers of the poor) will never influence the councils of a great nation. But the enormous expenses of those establishments, in which investments were made, to the amount of 20. .0, 40, 50 or 60,000 dollars, for buildings and machinery, would require and fully justify extraordinary prices in the commencement. — To bring this home to the cotton planters — and to enable them to conceive the force of the argument, we will suppose for a mo- ment, that, during the war, they for the first time commenced their plantations — and purchased slaves at 8 or 900 dollars each — and plantations for 5 to 10,0.»0 dollars. Could they, in the incipient state of their operations, aftbrd to sell their cotton for 16 to 20 cents per tb ? Certainly not. This is a case perfectly analogous, and ought to set this miserable objection at rest for ever. ISO. XII.* Philadelphia^ June 24, 1819. General view of the subject of political economy. Eulogium of Hamilton'' s report. State of this country previous to the Re- volution., and after the adoption of the federal constitution. Effects of the war in Europe. Calamitous consequences of the return of peace. We have presented for your consideration, the essence of the able and luminous repoit of Alexander Hamilton, then secretary of the treasury, on manufactures. The principles contained in * This address was written by Dr. Samuel Jackson, and is here inserted merr- [y to presen c unbroken the whole series. 22 170 ADDRESSES. that admirable state paper, are the principles of" political econo- my, that have been practised by those statesmen, whom the con- current testimony of ages, has pronounced , the most wise ; and have constituted the policy of every nation, that has advanced in civilization ; in which the principles of free government have been developed ; or which has grown in wealth and power. Did it comport with the design of these essays, it would be no difficult task to establish, by historical references, the facts, that the amelioration of society, the evolution of those just rights, which are the inheritance of every individual, and the weight and influence of the people in their government, had their origin in the establishment of manufacturing industry. With its pro- gression, have they progressed ; and by the diffusion of wealth through every class of the community, which is its necessary concomitant, have been diffused civilization and knowledge. The principles by which these important results have been ef- fected, we shall shortly elucidate. But other considerations first invite attention. The arguments by which Mr. Hamilton has sustained the principles he advocated, are lucid and conclusive. We believe them to be irrefutable. At least, we have not as yet met with any opposing writers, who have shaken one of the positions he advanced. Those diversified combinations, which grow out of, and affect all human transactions, did not escape his penetra- tion. They are too commonly overlooked by theorists,, who, intent on general principles, disregard the minuter circumstan- ces, that arise out of their very action, and frequently render them impracticable in operation, however just they may appear in themselves. In no science, are the general maxims of mere theorists more delusive, and more to be distrusted, than in political economy. This branch of knowledge is yet in its infancy. It is composed of relations so commingled and commixed together, that like a skein of tangled thread, they require to be traced out with great patience, perseverance, and close attention. Its principles are not yet established. Those which have been considered as the most fixed, have been overthrown ; those which have been taught as self-evident, are questioned ; and the whole are the subject of ardent discussion. In this state of the science, general maxims can serve no other purpose, than to give flippancy on an abstruse subject, and to ovei-leap difficulties, that cannot be removed. While the elements of political economy are thus undeter- mined, we are called upon to set at nought the harmonising ex- amples of the most prosperous states — the accumulated expe- rience of centuries ; and to confide the character, the resources, the power of this nation — the wealth and happiness of this pec- ADDRESSES. 171 pie — the safety perhaps of the government itself, to the operation of abstract principles, which have not yet been confirmed by practice, nor even settled by authority. In human affairs, abstract principles, though they may capti- vate the fancy by their simplicity, are often defeated by those subordinate accidents, which - they must necessarily exclude. The principles of '■ Political Justice,' of the English, and the ' perfectibilitv of human nature' of the French Philosophers, as well as unlimited freedom of moral action in the abstract, may be true. But overlooking the very constitution of human na- ture, the discordancy of its sentiments, the complexedness of its affinities, the variety of its affections, the perverseness of the human heart, and obliquity of human intellect, they can only be regarded as the visions of benevolent enthusiasts. The abstract principles of political eeonomy, are of similar character. Resulting from general reasoning, Avhich seldom descends to minute particulars, they bear all the evidences of correct deductions, until brought into practice. Their ineffi- ciency is then disclosed, and their partial nature made mani- fest. The . involutions and compound nature of human in- terest, we are convinced, set distinctive limitations at defiance. They often open suddenly into new channels that have not been traced, or flow through others, so obscure, that they have esca- ped our notice. Our generalities are defeated by unanticipated combinations, which give results never calculated ; and re-actions are produced, that work effects never suspected. In a science thus uncertain, and in things thus complicated and indistinct, it is the part of prudence to tread the paths of sober experience ; to trust those guides, whose long practice has imparted substantial knowledge, and whose knowledge is veri- fied by their success. To reject the long-acquired wisdom of ages, and the well-earned experience of mankind, from confi- dence in superior wisdom, may justly subject us to the imputa- tion of self-sufficiency, and hazard the dearest interests of our country. It is against such visionary projects, that w^e have raised our hands ; it is to warn you from the closet speculations of theo- rists, to invite you to common sense practice, founded on the nature of things, that we have intruded with the best intentions on j^our notice. We have presented to you in succession, the systems of various powers in Europe, for the advancement of their welfare ; and have shown some errors of policy, bearing a strong similarity to principles generally entertained in the united states, which proved fatal to those by whom they were adopted. We have, finally, presented you with a system, that has been proposed by one of our most enlightened statesmen, as best adapted to promote the wealth and power, by exciting and fos- 172 ADDRESSES. tering the industry of this country, in the circumstances of a g-e- neralarid cout^ lucd penre in E'rope. This system was prepared with an experience of the operation oi the peace policy of Eu- rope on our affairs, subsequent to the peace of 17''3, and after mature reflection on the commercial relations between this country and foreign powers. Its principles., founded on well- substantiated facts, are drawn from the examples of the most prosperous and most powerful nations ; and its materials derived from the abundant sources of European commercial legislation. These are circumstances which entitle it to great weight, and to be received with the most marked and serious attention. Let it not be presumed, that we are influenced by any feelings of political partiality, in favour of Mr. Hamilton. Most of those, who thus tender the tribute of their applause to his merits as a statesman, and thus highly appreciate this particular fruit of his labours, were, and continue to be, the decided opponents of his political principles. It is bigotry alone, that denies or would obscure merit in those, beyond the pale of its own belief, in church or state. To this feeling, we wish to have no claim ; and while we confess a contrariety of sentiment on some essen- tial points, we would not withhold our acknowledgment of the brilliancy of the genius, the extent and solid nature of the ac- quirements, and the strength of intellect, that distinguished Alexander Hamilton. In the present situation of the country, when it cannot be con- cealed, that its progress has received a sudden check, and so- ciety labours under the shock of a rapid recoil, the discussions of political parties sink into minor importance, in comparison with the great principles of the prosperity and happiness of the people and of the nation. These are the principles that should rise paramount in the view, occupy the thoughts, and animate the feelings of every citizen of the great American republic. Divesting yourselves, therefore, of party ieelings, prejudices, and partialities ; casting aside, as derogatory to the character of American citizens, the petty jealousies of sectional interests, take into candid consideration that system of policy, which, in the early establishment of our government, was deemed best to comport with our interests as an independent people. If its principles should appear to you just, and the reasoning by which it is sustained, consonant to truth ; if you should be satisfied, it is the best adapted to our present and probable future circum- stances, you will not hesitate to trust to it, for the advancement of individual and national prosperity. An inquiry naturally arises into the causes, which led the government, after having matured this system, and contempla- ted its adoption, to lay it aside. They are developed in our commercial history, and will be found to strengthen the princi- ADDRESSES- 173 pies and views on which it was erected, and lor which we con- tend. i he peace concluded in 1783. continued undisturbed ; Europe offered but partial markets to our productions while it closed its commerce to our marine. The annual value ot exports of our domestic productions was less in amount than the annual value of our consumption of foreign commodities : and we possessed no collateral sources of wealth to compensate the deficiency. The government had assumed a large debt, which subjected it to a heavy annual interest; other expenses \vcre accumulatin , the increase of which niight be confidentl}' anticipated ; and the pros- pects of revenue from foreign commerce, or an impoverished people, were but gloomy. In these circumstances, the attention of our statesmen must have been directed to internal resources. Yet from this quarter could be derived little to inspire their hopes. Commerce brought no money into the country ; circu- lation was limited and slow ; the industry or labour-power of the country was but partially exerted ; and consequently much wealth lost, that might have been created. Without a circula- ting medium, and full employment for industry, revenue must have been oppressive to the people, of difficult collection to the government, and uncertain in its proceeds. The difficulties of the colonial governments, and the evils en- dured by the colonists, were then fresh in remembrance : and their causes were well understood. The commerce, to which they had been limited, was that which at this time is recommend- ed to our adoption. Confined almost exclusively to the tillage of the soil, they exchanged their raw productions for the manu- factured articles of the mother country. This kind of barter or *' mutual exchange." to which the colonies were forced by the co- lonial system of England, kept them poor, to favour industry at home. This commerce, to which the jealous policv of Great Britain limited her colonial possessions in America, it was ac- knowledged both in and out of parliament, in the colonies and in England, and cannot now he denied, was intended solely to ren- der them subservient to her interests, to which theirs were unhes- itatingly sacrificed. Their progress in wealth and power, was looked upon with a distrustful eye. In order to its retardation, to keep them poor and dependent, they were forbidden to manu- facture, and compelled to supply their wants from England. — Even the earl of Chatham, who is considered to have been the triend of America, as he was the advocate of her rights, was still so much an Englishman in this respect, that he was unwil- ling that a single hob-nail should be manufactured in America. 1 he cultivation of the soil to its greatest extent, excited no ap- prehensions that it would enable the colonies to become inde- pendent. England well knew, that in the mutual exchange of 174 ADDRESSES. law products for manufactured goods, all the advantage was on her side, the loss on that of the colonies. She, therefore, res- tricted them to the cultivation of the soil, except permitting a few handicrafts of first necessity, and the fisheries to the New England colonies, which raised no production she re- quired. This system kept the colonies in a wretched condition. They were totally destitute of the precious metals, either to constitute or regulate a currency. Every hard dollar that found its way into them, was immediately exported to England in payment of debts. ' Those that are acquainted with America, know, as I do," said capt. Luttrel in a debate in parliament, " that from Rhode Island northwards, they have no money ; that their trade is gen- erally carried on by barter, from the most opulent merchant to the most necessitous husbandman. Sir, before your fleet and armies visited their coasts, you might almost as soon have raised the dead, as one hundred pounds in specie from any individual, in those provinces."* In order to procure some kind of currency to make those mu- tual exchanges, which the wants of civilized life render indispen- sable, and which cannot with convenience be effected by barter, the colonists were forced into various expedients. They altered the standard of money ; they issued paper money of different kinds ; they constituted it a legal tender. But all was ineffectu- al. While they had to hire workmen in England to perform their labour, they could not retain their gold and silver, which was sent to pay wages abroad. Altering the standard did not affect the value of gold and silver, which could not be restrain- ed by an arbitrary limitation ; and their paper money, having no guarantee for its safety, constantly depreciated. Such, it was known to our government, were the results that had been produced by a commerce, engaged in the exchange of the productions of the soil, for manufactured goods. They could not, therefore, anticipate, that a similar commerce would have other effects; and consequently, that by such a commerce, a me- tallic currency could be given to the people, or even a metallic ba- sis acquired, for an adequate paper currency. There was then no other course left them to pursue, but to adopt the manufacturing policy of Europe. By supplying a portion of those wants with our own industr}^, for which the colonies had been compelled by the parent country to hire and pay for labour in England, we would diminish the amount of our imports, without diminishing the amount of our exports ; because England took from us no more of our productions, than she really wanted, and those she would take under any circumstances, while the other nations to which we * Parliamentary Register, ADDRESSES. 175 traded, were never influenced by other views than the mere sup- ph- of their wants. Thus the balance of our trade with the West Indies, which had always been paid in specie, but immediately remitted to England, would have been retained in circulation ; while a portion of the balance with France and the Mediterra- nean, would also have found its way back to this country, instead of always being transferred to England. In this manner, and in this manner only, in a state of general peace in Europe, could a circulating medium have been procured, that could be kept pure, free from depreciation, and^fluctuations. But the rapid occurrence of events wholly unexpected, un- folded new prospects, and enabled the united states to acquire with ease and rapidit}^, the wealth and power necessary to give stability to their recently formed institutions. In the midst of the agitations of the French revolution, the crops failed in France and other parts of Europe. At once a market was opened to our agricultural production, stimulated to its greatest energy. The labour-power of the country, was instantly employed to the full extent of its capacity. The war that soon ensued, and in- volved almost every power in Europe, constituted us at once the carriers of an immense commerce. Our sails swelled on every ocean, and our flag streamed on every shore. Every dol- lar of capital we possessed or could borrow, and every hand in the nation, before idle, found emplovment. A road was thus opened to a rapid acquirement of wealth, and it was a natural po- licy to pursue it. The capital and industry of the country, be- fore stagnant and depressed, rushed into the new formed chan- nel. Manufactures, under these circumstances, were neglected, and the project was dropped. All the benefits that were expect- ed to arise from them, were to be obtained with certainty and expedition, by prosecuting our newly-disclosed and widely- extended commerce. Wealth rolled in apace : and the metallic capital, in the space of ten or twelve years, was increased to twenty or twenty-five millions of dollars. But the whole of this prosperity depended upon contingencies. A general peace in Europe would bring it to a close. As it was, we could not en- joy it undisturbed. The celeritv of our progress awakened the jealousy of a rival. It was sought to destroy, by new principles of national law, the advantages we derived from our neutral character. The difiiculties that were thus generated, terminated finally in the war, which arose, let it be remarked, not from a spirit of manufactures, but from a spirit of commerce. The expenses and sacrifices necessary to its prosecution, were, in fact, a tax upon the country, in favour of commerce ; yet it was cheer- fully borne, by the agricultural and manufacturing interests. Out of this contest, the nation came with an accession of cha- racter i whilst the rapidity of circulation, the full employment of 176 ADDRESSES. capital, and its retention in the country, caused individuals to feel but little comparative distress, notwithstanding its burdens. The attack directed against the physical strength of the country, only served to develop its power and resources. The war now waging against its moral strength, has paralized its energies, and laid it prostrate in the dust. It is no exaggeration to assert, that the two last years of peace have produced more commercial em- barrassment and distress, a greater destruction of capital and increase of individual misery, than was caused by the whole war. This apparent anomaly deserves to be examined. We believe its solution will be attained in the following considerations. The general pacification of Europe had preceded the treaty of Ghent: and most of the powers of the eastern hemisphere, had re-assum- ed their usual peace policy. The object of this policy is to fos- ter their own mai"ine, agriculture, and manufactures, to the ex- clusion of those of other nations. We consequently lost the commercial relations, that had existed in a state of European warfare. In fact, we reverted back to our old commercial posi- tion, prior to the French revolution, or when colonies. Had this circumstance been understood, it would have been foreseen, that -the same effects would have grown out of the same causes now as formerly. The principles, views, and reasonings, adapted to the then situation of the country, it would have been perceived, •were again applicable. But the habits and modes of thinking, which had been formed during twenty years of a lucrative com- merce ; the complete mutations which had taken place in the com- mercial world, during that time, leaving few individuals posses- sed of a practical knowledge of the effects of a general peace, on the interests of the country, occasioned the revolution our com- merce had undergone to be overlooked or disregarded. Most of those engaged in commerce, who also, it will be re- collected, preside over the monied institutions which regulate our currency, had little other experience of commerce, than such as existed during the wars of the French revolution. They nat- urally supposed, that it would continue to work the same effects, as during that period, except in smaller amount. The failure of two successive crops in Europe, in I815, and 1816, which stay- ed for a time the operation of the new staie of affairs, served to continue this delusion. The time, however, is not remote, when we shall be awakened tothe true situation of our commercial re- lations with Europe, and its consequences. The evils, which now press on us, many vainly flatter themselves, are mere tem- porary effects, similar to those which have before arisen from slight derangements of commerce. We are firmly persuaded, they are of a very different character, and of a more formidable nature. We have no doubt, that they are the same, as the evils under which this country suffered when colonies, and during ADDRESSES. 177 the peace subsequent to the revolution. The sooner we satisfy ourselves that such is the case, the earlier we shall extricate our- selves from the embarrassments^ that must grow out of the po- sition, in which we are placed. We propose to enter into the examination of this subject in a future number ; and trust we shall exhibit by a comparison of the commerce of the colonies, and the effects it produced on them, extracted from authentic documents, with the present commerce of this country, and the effects now begun to be felt, that they are of similar character. We fear, that from this view of the subject, though little flatter- ing to our pride, it will be apparent, that after having expended the best blood of the nation, and millions of treasure to shake off the yoke of colonization, we have voluntarily adopted the colo- nial policy of England, and placed ourselves with respect to her, and in truth to most of the woi'ld, in the situation of colonies. From this state of humiliating and injurious dependency, the united states are bound to vindicate the sovereignty" of a free people. For in vain will they make pretensions to a perfect in- dependence, while they incur through the medium of their wants, all the consequences of subjection. NO. XIII.* Philadelphia^ July 5, 1819. Proportion of persons who raise the necessaries of life. Crafty policy of Henry IV. Crusades. Progress of jreedgm in Eng- land^ France and Germany, Labour power in E7igland. VARIOUS causes concur to produce the present unhappy state of affairs. It is our belief, however, that the main root, whence branch all the evils we suffer, is the neglect of fur- nishing full employment, to the productive labour of the coun- National wealth does not consist in land, people, or the pre- cious metals, but in the possession of products or values, created by labour. A country with an extended territory, and a scattered popu- lation, must be poor and feeble. Such is Spain at this moment, and such was this country when in the state of colonies. There is a paper in the Spectator, No. 200, that contains some excellent reflections on this subject, which, as they cannot be better expressed, we shall extract in full. " If the same omnipotent Power, which made the world^ • This No. like the fonner, was written by Dr. S. Jackson. 23 i78 ADDRESSER. " should at this time raise out of the ocean and join to Great Brit- *' ain an equal extent of iaad, with equal h.tilciings, corn, cattle, *'.and other conveniences and necessaries of life. i)Ut no inen, "women nor children, I should hardly helieve this would add, *' either to the riches of the people, or revenue of the prince/' — And again — " That paradox, therefore, in old Hesiod, TryiovufxKrv 'tt^vIoc, or " half is more than the whole, is very applicable t . the present *' case ; since nothing is more true, in political arithmetic than *' that the same people with half a country, is more valuable " than with the whole. I begin to think there was nothing ab- " surd in Sir W. Petty, when he fancied if all the Highlands of " Scotland, and the whole kingdom of Ireland, were sunk in the *' ocean so that the people were all saved, and brought into the " lowlands of Great Britain ; nay, though they were to be reim- *' bursed the value of their estates by the body of the people, yet *' both the sovereign and the subjects in general would be en- *' riched by the very loss." The same sentiment is contained,andplacedin a striking point of view with relation to this country, in a petition to parliament, in the year 17'^7. General Phineas Lyman, it appears, contem- plated the establishment of a settlement on the Ohio, in the pre- sent state of Illinois ; and for this purpose applied to parliament for a tract of land. He enforced the propriety of the measure by the argument, that there could be little danger of the colonies becoming independent, if confined to agricultural pursuits, and the inhabitants were diffused over the country. The position is perfectly correct ; and is a very suitable and forcible reply to those who are incessantly advising the same policy to these free and independent states, instead of promoting manufacturing in- dustry on the seaboard, and the already thickly settled parts of the country. This is purely an English doctrine, and one which the English government unquestionably warmly ap- proves. " A period," observes the petition we allude to, " will doubt- "less come, when North America will no longer acknowledge a " dependence on any part of Europe. But that period seems to " be so remote, as not to be at present an object of rational policy " or human prevention [and] it will be made still more remote^ " by opening new scenes of agriculture, and widening the *' space, which the colonies must first completely occupy."* While it is thus demonstrated, that territory thinly peopled confers neither riches nor power, we have examples in Egypt, modern Greece and other provinces of the Turkish empire and in Persia, that people, deficient in industry, contribute as little to national wealth or strength ; while Spain and Portugal are fami- * Macpherson's Annals of Commerce, 1767. ADDRESSES. 179 liar instances, that they are not necessarily concomitant with the : ossession of the precious metals. When we reflect en the distribution of labour in society, which is necessary to give valic to production, we shall Ve more sen- sible of the truth aud operation of the principles laid down. It has been judged from experience, and admitted by the best authorities, that the labour of twenty-five persons, will procure all the common necessaries of life, as food, drink apparel, hous- ing, furniture. &c. for one hundred. This supposition takes the above articles as coarse, though plentiful and good. One half, it is supposed, from being too old. or too young, sick or infirm, will produce nothing. There will then remain about t\\ enty-h \ e individuals of every hundred, capable of working, who are ne- cessarily idle or non-productive. Now, on the quantity a; d quality of the employment, with which these twenty five ir div;d- uals are occupied depend t! e wealth, power, intelligence, and degrees of civilization of a nation. The objects which can alone occupy this class, which, for the sake of distinction, we shall call non-necessary pr oducers, as there is sufficient of sustenance and raiment, &c. for necessary wants, produced without them, must be, in pait, to give to those products greater refinement, and consequent value : that is, to give to food a higher relish and more diversity ; and to apparel, furniture, &c. more of ornament and beauty. These operations are the chief constituents of manufacturing industry, av.d absorb a considerable part of the labour, which would otherwise be idle. The cultivation of letters, of the fine arts, of the physical itnd abstract sciences, the offices of state, and its protection in the ar- my or navy, in civilized society, give occupation to the remain- der. When that portion, which is employed in creating material products or values, finds full occupation, and is predominant, then national wealth is on the increase ; circulation is kept full, brisk and steady ; contentment and ease, comfort and happiness, are in the power of each individual to obtain ; the government is invigorated, and its finances in a flourishing state. This is the situation of a prosperous people, and to attain and preserve it, should be the coi\stant aim of an enlightened government. The reverse of this state of productive industry, brings on a imentable change in the aflFairs of a nation. In proportion as he employment of this class diminishes, national production or ivealth declines ; circulation becomes dull, languid, and stagnant; embarrassments and difficulties surround traders ; poverty and misery assail labourers ; being idle, they become vicious ; and, oppressed by pauj)ensni, they become criminal. The materials for riots, and civil commotions ; the ready instruments of de- 180 ADDRESSES. signing demagogues, are formed and accumulated, to the ha- zard of all good Citizens, and the safety of ci* ii go . cenment. It is not improbable, that it was this state of things, which was one of the principal causes of the violences of the French revo- lution. The derangement of the finances ; the immense and un- equal exactions of the government, which fell chiefly on the in- dustrious poor ; the vacillation of its measures, which overthrew all confidence ; and the operation of the impolitic treaty of com- merce with England in 1786, all tended to ruin the productive industry of France. Large fragments of its population were thus disjointed from their usual situation, and floated, loose and unemployed, endangering the existence of organized society, with the first agitations that should arise. The commencement of the revolution seems a demonstration of the fact. A starving multitude surrounded the Hotel de Viile, vociferating for bread ; and, whenever the king appeared in public, his ears were stunned with the same incessant clamour from the crowd, that thronged around his coach. The same principle explains satisfactorily the cause of the ex- traordinary military energy of France, at that period. Her commerce ruined ; her manufactures languid ; her trades sinking from diminished consumption ; her agriculture oppressed and declining ; and the total destruction of her finances, threw an immense mass of physical and labour-power out of employment. The army offered the only mode of occupation, by which it could be absorbed. Hence, more than a moiety of the non- necessary producers, whose labour had been appropriated on a thousand different objects, was suddenly devoted to arms. In the armies of the republic were found every rank and grade of society, and every variety of trade and profession. Europe, which had confederated against that devoted country, and anticipated an easy conquest, was surprized, alarmed, and confounded, at the spect9,cle presented by this nation, which had seemed prostrated with calamity, sending forth at one time " eleven distinct armies"* to the field, and her extended frontier bristling with bayonets. This principle was so well understood in England, before the establishment of manufacturing industry secured permanent employment, that it became a maxim with her kings to engage in wais, whenever this portion of her population accumulating, became idle, restless, and discontented. '■'■ It was the dying injunction of the late king, (Henry IV.) to his son, not to allow the English to remain long in peace, which was apt to breed intestine commotions ; but to employ them in foreign expeditions, by which the prince might acquire * Stevens's Wars of the French Revolution, vqI. i. p. 266. ADDRESSES. 181 honour ; the nobility, by sharing bis dangers, might attach them- selves to his person ; and all the restless spirits find occupation for their inquietude."* By this means employment was found for her superabundant labour, which had become oppressive and troublesome to the government, because it could not find any other occupation On the disposition which is made by the government, ol this class of non-necessary producers, depends the character 1 1 a nation. If the greater portion be occupied in agricultural and manufacturing industry, the nation will be wealthy and pros- perous, but not enlightened. This is the case with China and Hindostan. If engaged in arts, letters, and sciences, it will be distinguish- ed for its writers, poets, philosophers, historians, orators, states- men, sculptors, and painters. Greece in its maturity, Rome in the Augustan age, and Italy at the time of the revival of letters, illustrate our doctrine. If arms be made their trade, the people become warlike, make extensive conquests, and are renowned for heroes, commanders, and warriors. This was the character of Greece in its early history, of Macedon, and of Rome. It is also the condition of most semibarbarous states ; like the Scythian tribes, which de- stroyed the western empire ; and the Arabs, who carried the crescent over more than half the world, and ha^e thundered at the gates of most of the capitals of Europe. In the vigour of its feudal institutions, Europe presented the same aspect. Arms and a rude agriculture constituted the chief employment of its inhabitants, who, poor and oppressed, were the dependant vas- sals of their lords. Unoccupied by trades or manufactures, they were ever ready to follow their chieftains to the field, reckless of the cause which summoned them to the work of destruction. Under the banners of the cross, were arrayed such multitudes, that Europe, re- marks Anna Comnena, loosened from its foundations, and im- pelled by its moving principle, seemed in one united body to precipitate itself on Asia.f The plains of Palestine and the borders of the Nile, for near two centuries, were deluged with the blood of millions of human beings, vainly shed in the fruit- less battles of the crusades. When the exertions of a population of this character, are not directed on some one object, and combined by the control of an efficicDt government, or by some ruling motive of religion or interest, society is incomplete disorganization. Civil wars, the contests of petty chieftains, plundering and robbing by armed * Hume's History ofEngiand, vol. 2. chap, six, p. 59. t Alexias, lib. 10. 18^ ADDRESSES. bands, ranging over the country, are then the predoTninant features. The dominions of the Grand Signior, Africa, and many Asiatic states, are instances of thib constitution of things ; and there are strong indications of its commencement in Spain. This was the condition of feudal Europe. The crown pos- sessed Httle constraint over its great feudatories ; each of which avenged his own wrong with his sword ; and most of them sup- ported their petty dignity, and their retainers, by predatory in- cursions on the domains of their neighbours. From the disorders incident to, and the degradation conse- quent on feudaUsra, man was rescued by the establishment of manufactures. They drew him into towns and villages ; and association sharpening his intellectual faculties, he began to un- derstand his rights. By his labour, wealth was created ; and with his wealth, and by his combination, he acquired power to enforce his rights, or the means to purchase their enjoyment. Tracing the causes, whence have proceeded the abrogation of feudal institutions, and the emancipation of society from the debasing and depraving influence of feudal obligations, it will be seen, that they have disappeared, like darkness yielding to the day dawn, before the genial and invigorating influence of manu- facturing industry. The people of Italy, acquiring wealth and power, arts, letters and science, by their industry, first cast aside the shackles of feudal bondage Flanders and the Netherlands, treading in their steps, next succeeded in the list of free states. As manufac- tures progressed in England, the people gradually rose into con- sequence and independence. Yet, frotn the many obstructions they met with, by the impolicy of the different kings, vassalage was not completely annulled until 1574. In that year, Elizaiieth, in order to raise money, directed a charter to her lord treasurer Burleigh, and Sir William Miidmay, chancellor of the exche- quer, " to inquire into the lands, tenements, and other goods of all her bond-men and bond-women in the counties of Cornwall, Devon, Somerset, and Gloucester, viz. : such as were by blood, (?. e. birth) in a slavish condition, by being born in any of her manors ; and to compound with all or any such bond-men or bond- women in these four counties, for their manumission or freedom ; and for enjoying their said lands, tenements and goods as freemen."* Thus terminated feudalism in England, from the commonalty being enabled by the wealth acquired by manu- facturing industry, to purchase their emancipation. In France, the progress of commerce and manufactures was slower than in England, and a consequent slower progress is observable in escaping from feudal oppression. Those, whe * Anderson on the origin of Comineree. ADDRESSES. l^o had engaged in commerce and manufactures, were, however, th. first who became exempt ; and the agriculturist, at the period of the revolution, which brought it to a close, alone was svibject to its hardships. The peasantry of nearly all the Germanic states, of Hungary, and of Russia, are at this time trammelled with its fetters. But the period of their liberation rapidly hastens on. The immense sums, disbursed by the contending powers in the late contests, have diffused much property among the commonalty, and exci- ted their industry. Tlie continental system of Bonaparte exci- ted a spirit of manufacturing, which is still maintained. The sovereigns in the last grand confederacy against Napoleon, could not rel\-, as formerly, solely on mercenary troops, but were thrown on the people for support. A military spirit, and the sentiments it gives birth to, have thus been infused among their subjects, who have learnt the dangerous secret of their power and its extent. The consequences have been, that Bava- ria and Baden now enjoy the best constituted and freest go\ ern- ments in Europe, while almost all the people of the states of Germanv, are perseveringlv and anxiously demanding froui their, rulers, an acknowledgment and guarantee of their rights in writ- ten constitutions, and a participation, by their representatives, in the government. The more close and attentive the examination of this interest- ing subject, the more conclusively will be established the posi- tion, that the modern principles and practice of free govern- ments ; the amelioration and refinement of society ; the advance- ment of civilization and the cultivation of the higher intellectual pursuits, have grown out of the diffusion and division of produc- tive labour, and the multiplication of the objects of its exercise. When the labour or producing power of a nation, is not too much concentrated, in any one or two particular occupations, but is diffused in due and regular proportion, among those pro- fessions that constitute civilization, such a nation is, then, in its most prosperous, happv, powerful, and intelligent condition. It will be equally fained for its wealth, its power, its laws, its arms, its letters, its sciences, and its arts. This constitutes the most improved state of society, which it is the duty of government to establish and cherish. In different degrees, this is the case with different nations of Europe. There are various causes, into the detail of which, we have not leisure, and which would lead us too far from our object to enter, that cast over each of them, different complexions and tints, but which do not, however, des- troy their similitude. We shall barely confine ourselves to remark, that in England, her political policy, and her labour-saving machinery, produce modifications of the general result on her population, which at 184 ADDltESSES. first view, seem to militate against our proposition. But a little inspection will dissipate the incongruity. The population of Great Britain is estimated at 1 7,000,000.— « Let us allow three-fourths to be productive of material values, which will make 12,750,000, as the physical labour population. But according to Mr. Owen of Lanark, the machinery of Great Britain creates a production equivalent to the labour of 180,000,- 000 individuals. The physical population, therefore, of Great Britain, is, to what may be called her moral population, as 1 is to 14. Now, it is chiefly the labour population, and that gener- ally which is devoted to the coarsest and lowest labour, that is subject to pauperism. They are made paupers, by whatever in- terferes with their industry, or competes with their labour. But as a moral or a machinery labour-power is similar, and equiva- lent in its production, to a physical labour-power, the physical labour-power of Great Britain, that is rendered paupers, ought in strictness, to be compared not to its physical productive pow- er alone, but to its whole productive power; that is^ not to twelve or seventeen millions, but to 192 or 197,000,000. Let us suppose Mr. Owen's calculation to be erroneous, and let us strike off eighty millions, and take the productive power of ma- chinery in England as equal to 100,000,000 of people, still, viewing it in the light we have presented, the discrepancy that is often pointed out, disappears. The aristocratic provisions of the English constitution, and oiperation of the vast funding system now established, also dis- turb that equable and regular diffusion of labour, production, and the burdens for the support of government throughout the communitv, which is essential to the highest state of political prosperity and happiness. Its order of nobility is supported in the magnificence and splen- dor of an illustrious rank, by inordinate salaries, attached to petty and mostly useless offices of state ; and by enormous pen- sions and extravagant sinecures. These are taxes, levied on the industrious and productive members of society, to pam- per the luxury, and glut the pride, of the idle and non-pro- ductive. The laws of primogenitureship and of entailments, abstract and withhold from the general circulation, a large portion of the landed property, in favour of this privileged rank, to the mani- fest detriment and oppression of the industrious class ; and as Lord Coke observes, " what contentions and mischiefs have crept into the quiet of the law, by these fettered inheritances, dai- ly experience teacheth." ' The limits of these essays forbid us to develop, through all their ramifications, the operation of circumstances peculiar to European society, and of the political policy of its governments ADDRESSES. 185' which counteract and frequently destroy the beneficial results of its principles of economical policy. The two are notnecessa- rilv connected. The one can be embraced with ease, without adopting the other. We have confined ourselves exclusively to the consideration of the political economy of England and other European powers, without reference to their politics. What- ever prosperity they are found to possess, can be attributed sole- ly to its operation. We have, therefore, recommended it to the imitation of this country. But we have to lament, that some of those who have opposed our views, have refused to draw the distinction, and ha'.e seized on the vices of their politics, as ob- jections to the principles of their economy. Applying the above principles to the united states, we shall discover, that during the prosperity which they enjoyed in the first twelve or fifteen years subsequent to the French revolution, the labour power of the country was fully exerted. The wars in Europe creating a constant market for their agricultural pro- ducts ; the carrying trade, and the various branches of business connected with it, gave employment to the greater portion of their labour. Agriculture and commerce were then the charac- teristic pursuits of the nation. Literature, science, and the arts, were but little cultivated ; and few original works of importance were produced. Those liberal professions, however, which are connected with the ordinary transactions of society, and are made the business of individuals, flourished with a vigour un- surpassed in any other country. Of this character are politics, medicine, and law. The improvements those sciences have un- dergone, and the ability of our citizens devoted to them, place the united states in a very favourable light as respects the intel- lectual powers of its citizens, and excite auspicious hopes for the future. Turning our attention to the situation of the nation, at the pre- sent time, with reference to the principles laid down, it is obvi- ous, that the sources, which formerly absorbed the superabound- ing labour power of our country, have ceased to exist, and con- sequently that a portion of the population which was occupied by them, is daily thrown out of employment. Hence we notice the effects, we have described, as characteristic of such a state of things. Consumption is less in amount, and consequently the value of almost everj- species of property is on the decline ; bankruptcies are numerous ; credit nearly extinct ; the circula- tion stagnant ; labour fallen in price ; workmen discharged by their employers ; and the number of the poor augmenting. As this is the most unfavourable state in which a nation can find itself placed, it is the duty of the statesmen, to whose hands is confided its direction, to inquire into the causes which have created those unfavourable circumstances. If they find them to 24 186 ADDRESSES. be merely transient, temporary remedies, adapted to alleviate present distress, or to enable the community to sustain the shock of passing events, should be sought for and applied. But if found to originate in causes, which cannot be confidently anticipated to disappear of themselves, it is also their duty to devise a new svstem of policy, adapted to the new situation of the nation. If the class of industrious poor be found unemployed, and their pro- duction at a stand, the state should devise some mode to procure the.n employment, and give a fresh impetus or a new direction to their production. If the consumption of the productions of the industinous poor, on which they depend to obtain the com- forts and necessaries of life, and to pav the taxes that are requir- ed for the support of society, be diminishing, remedies should be speedily applied to counteract this injurious operation. The neglect of these important points in 'egislation, may overwhelm a large portion of society, hitherto happy, prosperous, and con- tented, with suffering and calamity ; and a consequent feeling of discontent and inflammatory excitement be occasioned, which is greatly to be deprecated. We apprehend the situation of our country is of the above character. Agriculture, commerce, the retailing of the fabrics of foreign countries, and the branches of business subordinate thereto, formerly gave fall occupation to the greater part of our peO;)le ; but the foreign markets which were heretofore opened, being now closed to our agriculture ; our commerce much con- tracted ; the capacity of the people to consume diminished ; those occupations have become overstocked, and no longer give full or profitable employment to those who are engaged in them. In the present posture of affairs, there are no rational indica- tions, which can lead us to expect, that those pursuits, while it continues, will give full employment to our industry : and it surely cannot be urged, that this or any nation, should trust its prosperity to the possible occurrence ol favourable accidents. — Yet, while we continue to direct our industry chiefly to those em- plovnnents, we must depend on the contingent circumstances of a war, or deficient harvests in Europe, for its maintenance, and to procure adequate markets for our productions, when carried to the extent of our productive power. In the meantime, the non- necessary class of producers, must constantly increase ; its capa- city to pursue the vocations, in which it was engaged, must les- sen ; its means of sustenance daily decline ; and the whole retro- grade from the higher species of labour to the lower. i he in- ferior labourers thus pressed upon, while employment is de- creased, must be thrust into pauperism, and come on the public for support. ADDRESSES. 187 If these revolutions take place quietly, from operating on a sluggish population, the only effect will be, to place society back in the position, it had previously occupied, before it had known its days of prosperity ; or had acquired a taste for, with a knowl- edge of, the indulgences and refinements of advanced civiliza- tion, growing out of its increased wealth and the cultivation of intellectual enjoyments, in the fine arts, letters, and science. But should this retrocession be resisted, and a struggle once com- mence against this stiUe of things, inevitable if left to themselves, it is utterly impossible to calculate the course it might pursue, or the asi ect it might assume. All the ills, that universal experi- ence has shown to be the concomitants of want of employment, are incurred, and can only be avoided, by opening new means of occupation as the old disappear. Every nation in Europe, tlsat is esteemed wise, has directed its attention to manufactures, not only as the chief source of wealth and powder, but as the most salutary mode of absorbing the accumulating class of non-neces- sary producers. It low rests with us to imitate in this respect the examples, by adoi/ting the experience, of the most illustrious people of ancient and modem times ; or, by determining to pro- cure experience for ourselves to run through a course of suffer- ing and distress. But, when exhausted by the process we have undergone, who can answer for the recover)- of our past state of prosperity ; whether we shall rise to that greatness, to which we have been looking forward with pride and exultation, or sink in- to the feebleness and debility that have always attended those nations, which have neglected the sound policy of distributing employment of every kind, throughout their population ? NEW SERIES. NO. I. Exports offioiir^ cotton and tobacco. Alarming depression of the price of cotton. East India and South American cotton. Im- mense loss by the reduction of tjie price of cotton. Total im- portation into Great Britain. "Is commerce of importance to national wealth ? Ours is at the lotvest point of " declension. Is a violent and unnatural decrease in the value of land, a symptom of " national distress f The price of improved land, in most parts of the countiy, is "much lower than can be accounted for by the q.iantity of .saste lands at market; « and can only be fully explained bi/ that want of public and private confidence, ichich " are so alanninghi prevalent among all ranks, and which have a direct tendency to " dejrreciate property of every kind. Is private credit the friend and patron of indus- " try ? That most useful kind, which relates to borrowing and lendinjf, is reduced 188 ADDRESSES. « within the naiTowest limits, and this stLU more from an opinion of insecurity thao " from a want of money. "This is the melancholy situation to which we have been brought by these " very councils" [of purchasing cheap goods abroad, and thereby destroying the industiy of our own citizens] *** " which, not content with having conducted us " to the brink of a precipice, seem resolved to phinge us into the abyss that awaits «?« belo-iv Here, my countrymen, impelled by every motive that ought to influ- " ence an enlightened people, let us make ajii^n stand for our safety, onr tranqviU- " ty, onr dignity, our reputation. Let us at last break ike fatal charm -which hus too " long seduced us from the paths of felicity and prosperity." Federalist, No. XV. Philadelphia^ November 15, 1819. The reasoning, in our former addresses, in favour of affording adequate protection to that portion of the national industry en- gaged in manufactures, might have appeared intended solely for the benefit of the manufacturers, distinct from the rest of the community. This would be a great misapprehension of our views, which are directed to the promotion of the permanent prosperity of the nation, on a grand and liberal scale. So close and intimate, in fact, is the connexion between the different in- terests of the same country, that each must participate in the advancement or decay of any of the Others. It is therefore as impossible for either agriculture, manufactures, or commerce, to suffer severely, without the others partaking of the evils, as for one of the members of the human body to be maimed without the whole frame being affected. This theory, always advocated by the wisest political economists, has been completely corrobo- rated by the recent experience of the united states, in which the decay of so large a portion of the manufacturing establishments has spread distress and embarrassment over the whole country. In the present addresses, we shall attempt to prove, by facts, founded on indisputable authority, quoted at full length, and by fair and logical deduction, — I. That there is no prospect of a favourable change in the Eu- ropean markets for our staples. II. That the promotion of manufactures is in the most emi- nent degree beneficial to agriculture. And .III. That the markets for our agricultural productions, throughout the world, being generally glutted, it would be un- wise to divert to farming or planting any of the persons usually devoted to manufactures, even if they were all capable of those employments. The three grand staples of our country are cotton, flour, and tobacco, which form nearly three-fourths of the total of our ex- ports, as may be seen from the subjoined table. Their great ex- tent and high prices have enabled us to pay for the extravagant amount of our importations, and greatly enriched our farmers and planters. We enjoyed the blessing, and never anticipated a change. We sailed gaily along, with wind and tide in our ADDRESSES. 189 favour, and without a dark speck in the horizon. No louring storm was anticipated. But the sky at length became overcast. A hurricane arose ; and, in its course, not only pr strated some of our most wealthy citizens, who had invested their en- tire fortunes in those staples, but greatly impaired and impov- erished the resources of the entire nation. Exports. Flour - Cotton Tobacco Total Domestic Expoils. 1815. Bolls. 6,202,0o' 17,529,UUo 8,253,000 3l,984,0u0 45,974.00u 1816. Dolls. 6,ri2,00u 24,106,00; 12,809,0C'. 43,627,00; 64,782.00o 1817. 1818. Bolls. Bolls. I7,75l,37& 11,576,970 22,627,614 31,334,258 9,230.020;" 9,867,429 49,609,010 52,778,657 3,313,500 73,854,437 It is impossible for any man of enlarged and liberal views, to examine this table even superficially — to consider the recent reduction in the prices of those articles — and the limitation of the market for them, without feeling dismay at the prospects that present themselves to our country', and an unalterable con- viction that if we wish to secure its prosperity, happiness, re- sources, and real independence, a radical change in our system is imperiously necessary. Cotton. The alarming depression in the prices of our great staples, came on our farmers and planters unawares. There were, nev- ertheless, unerring symptoms of the change, more particularly so far as regards cotton. Intelligence had been received in this country of large orders sent to the East Indies for that article, and it was almost prophetically announced, in 1817,* that the price of ours would necessarily be greatly reduced. A considerable time previous to the close of the last session of congress, the most explicit accounts had been received from En- gland of the great progress making in the consumption of East India cotton, and its alarming interference with that of the united states. Most of the circulars of the eminent merchants of Liv- erpool of that period conveyed this view distinctly. Out of a great number now in our possession, all of the same tenor, we submit an extract from one written by John Richardson, of Liverpool, and dated the 11th of November, 1818. Memoir on the culture and manufacture of cotton, by Tench Coxc, passim: J90 ADDRESSES. "It was confidently expected Hy manv, that prices would Have "rallied bef )re t^ie close of tie year : but the i nntiense qiantity *' of East India cotton which is weekly forced on the market by *' auction, renders this speculation extremely uncertain ; particu- *'larly as by a rtcent discovery in the preparation of Bengals and *' Surats, the spinner-s are enabled to make better yarn and spin *■'■ finer numbers ; this has very materially interfered zvith the con- *' sumption of American c otton^ and tvill prevent it from ever reach- *' ijig- such prices as it has of kite years done.'*'' This letter arrived in Philadelphia in December. There was then ample time to profit by the important information it con- tained. But its salutary warnings, like those of 1817, were to- tally disregarded. The parties immediately interested, and the country at large, reposed in a dangerous security. There were no preparations maae to parrv the stroke, by the infallible means of providing a home market, a measure dictated by every pnnci- ple of regard for self-interest, as well as for the welfare of the nation. The duty of twenty-seven and a half per cent, on cot- ton goods, (except on those below twenty-five cents per square yard, which are dutied as at twenty-five cents) remained un- altered, notwithstanding the earnest and reiterated applications of the manufacturers — the ruin of hundreds of our best citizens — the suspension of establishments, on which millions had been expended — -and notwithstanding so large a portion of those who had been employed in them, were driven to idleness and want, many of them with large families. A prohibition of low-priced muslins at that period, and an advance of duty on high-priced to 35 per cent, would have produced such a great increase of con- sumption in the united states, and of course such a reduction of the quantity in the British market, as to prevent any material de- pression in the price, and would have saved the planters and the nation millions of dollars, as will appear in the sequel. Great Britain derives nine-tenths of her supplies of cotton from the East Indies, South America, and the united states. Of each in order. East India Cotton. The importation of cotton from the East Indies into the Brit- ish dominions, to any considerable extent, is of recent date. — The whole amount in twelv^e years, from 1802 to 1813 inclusive, was only 188,911 bags,* or an average of about 15,700 per an- num. There have been two objections to the general use of this spe- cies of cotton, the shortness of the staple, and the great want of care in cleaning and packing it. The latter has been in a great * Seybert, 92, ADDRESSES. « l9l degree obviated, so far as regards a large portion of what is re- cei ed in England. But in some cases it still exists ; hence the great difference of price between the extremes, which is fre- quently three or four pence per lb. The staple has like\vise been considerably improved. We have now before us printed circular letters which shed strong light on this subject, and cannot fail to be duly appreciated by every enlightened planter. One is from the house of Humbers- ton, Graham, & Co. of Liverpool, and dated as early as June 28, 1817. " With the chief part of the uplands now brought for- " ward, East India cotton be^in.s mattrially to inteijerv : and if *' the quality of the crop yet to be received should not improve, " this will occur, to a more considerable extent ; for in the late ** imports of Bengal cotton, thert t\ a decided improvement in the " staple ; and, by reference to the annexed list of sales, it is evi- " dent theti are coming into more general use.'''' There is likewise an item in the London price current for August 31, 1819, which confirms the precedi/;g statement. Surat cotton is therein quoted at 7d'. to 9hd. : but Surat extra pne is 9.Y. to 1 1 hd. This implies a great improvement, either in the quality of the seed, or the mode of preparation, or both : and when the strong incentive to further improvement is considered, it may be presumed that every effort will be made, and no doubt successfully, to remove any existmg objections. It is to be ob- served, that in no other price current that we have seen, is this item of Sural extra fine cotton to be found. One other remark is called for. I'he best Surat cotton in the Liverpool market generally comes very near in price to the Tennessee. January 2, 1819. d. Surat, fair to good 11 Tennessee - - 142 The improvements made in the culture and preparation of the East India cotton, have been greatly promoted by the very high prices of ours and those of the Brazils, Bourbon, &c. It is only woiidertul, that tney did not take place much earlier. We annex a table of the importation of East India cotton into Great Britain, for two successive periods, each of four years. June 2. 1819. d. d. d. to 14i 9 to 10§ to 154 104 to 114 192 ADDRESSES. Bags. lAi^n. Imported in 1811 14,646 Imported in 1815 23,357 1812 2,607 1816 30,670 1813 1,429 1817 117,454 1814 13,J48 1818 247,6j4 31,730 419,085* This table affords matter for serious reflection, not merely to the cotton planters, but to the people and government of this country. It speaks volumes on the rapid strides making in the British markets by the East India cotton. The increase is probably without example. It was nearly four -fold m 181 7 of the amount in 1816 ; and in 1818, more than two-fold that of the preceding year The capacity of the East Indies to pro- duce this article is without limits. By a Calcutta paper of Jan. 20, 1819, it appears that Bags. The export of cotton from Calcutta in the year 1818 was 336,848 from Bombay ------ 323,807 660,655 equal to about 190,000,000 lbs. It is supposed by many of our citizens, that there is a radical and insuperable inferiority in the East India cotton. This is an egregious error. The finest muslins in the world are manufac- tured in Hindostan, of the cotton of that country. It therefore follows, that the great superiority assumed for ours cannot be regarded as any security against the East India competition. We are informed by a writer of high authority, that " a fine sort of " cotton is still grown in the eastern districts of Bengal^ fit for the " most delicate manufactures.''''^ The rise in the price of our cotton in the British market, as stated from the price current of September 30, may lead our planters and merchants to hope that they will regain the ground they have lost, and thus lead to extensive speculations. This would probably prove a fatal error:|: to hundreds of those who * Seybert, 92, and Journal of Trade and Commerce, vol. ii. page 113. ■j- Colebrook's Remarks on the husbandry and internal commerce of Bengal, page 138. \ [The predictions here hazarded, have been fully verified. The price of cot- ton in the Liverpool market has not only not risen since the above period, but has fallen considerably ; sea island above 33 and upland 8 per cent. This address was written, as may be seen by its date, in Nov. 1819 ; at which time Upland cotton was sold in Liverpool at - - - - - 12rf. to 12f Sea island fine 340 in the city of Philadelphia have been -deprived of employment.] 7. Our circulating medium drawn away to the East Indies and to Europe, to pay for articles which we could ourselves fur- nish, or which we do not want. 8. A heavy annual tax incurred to Europe in the interest pay- able on probably 15 or 20,0)0,000 of dollars of government and bank stock, likewise remitted in payment. 9. Real estate every where fallen thirty, forty or fifty per cent. 10. Our great staples, cotton, flour, tobacco, &c. reduced in price from thirty to forty per cent. 1 1 . Our merino sheep, for want of protecting the woollen man- ufacture, in a great measure destroyed, and those that remain not worth ten per cent, of their cost. 12. Large families of children become a burden to their pa- rents, who are unable to devise suitable means of employment for them. 13. Numbers of our citizens possessed of valuable talents, and disposed to be useful, but unable to find employment, are migrating to Cuba, where, under a despotic government, among a population principally of slaves, and subject to the horrors of the inquisition, they seek an asylum from the distress they suf- fer here !* 14. Hundreds of useful artisans and mechanics, who, allured by our form of government, migrated to our shores, have re- turned to their native countries, or gone to Nova Scotia or Ca- nada, broken hearted and with exhaustedfunds.* 15. Men of capital are unable to find profitable employment for it in regular business. 16. Citizens who own real estate to a great amount — have large debts due them — and immense stocks of goods, cannot mortgage their real estate, dispose of their stocks but at extra- vagant sacrifices, nor collect their debts. 17. Citizens possessed of great wealth, have it in their power to increase it immoderately, by purchasing the property of the distressed, sold at ruinous sacrifices by sheriffs, marshals, and otherwise — thus destroying the equality of our citizens, and * Emigration to Ciiba. — " The schooner Tlu-ee Sally's, captain Warner, sailed from this port on Sunday last, for Fernandina de Yuaga, a new port and settle- ment on the south side of Cuba, with 101 passengers, principally respectable mechanics, and their families, and late residents of this city." — Philadelphia Dai-: hj Advertiser, Dec. 2, 1819. " In the schooner John Howe, lately sailed upwards of one hundred passen- gers for the new settlement of Fernandina, in Cuba." — Philadelphia Gazette. * " Liverpool, JVov, 2, 1819. — The Ann, Captain Crocker, from New York, is now ©ft' this poi-t, with upwards of one hundred returned emigrants," ADDRESSES. 199 aggrandizing the rich at thp expense of the middle class, of so- ciet\ . The extent of this serious evil is difficult to be ascer- tained with precision. 18. The interest of money extravagantly usurious. 19. Distress and suffering, to an extent not to be conceived but by those who have an opportunity of beholding them, spread- ing among the labouring classes, in our towns and cities. 20. bankruptcy and poverty producing an alarming increase of demoralization and crime. 21. The attachment to our government impaired in the minds of those who are ruined by the policy it has pursued. 22. After having prostrated our national manufactures, lest we should injure the revenue, the revenue itself fails, and we are likely to be obliged to recur to loans,* or direct taxes to meet the exigencies of the government. 23. Numbers of banks in different parts of the union, depriv- ed of their specie by the extravagant drains for Europe and the East Indies, and obliged to stop payment. 24. Legislatures driven, by the prevalence of distress, to the frightful measure of suspending the collection of debts. That this is an unexaggerated picture of the actual situation of our country, is, alas ! too true. It affords a proof that our sys- tem has been radically unsound — and that a change is impe- riously called for. Any change can scarcely fail to be beneficial. These ruinous consequences were prophetically depicted with * a pencil of light,' and also distinctlv presented to the view of congress in their progress. Happy, thrice happy would it have been, had the warnings and heartrending statements which that body received, been duly attended to — What shoals and quick- sands would our prosperity have escaped ! The committee of commerce and manufactures in 1816 de- clared, that — " The situation of the manufacturing establishments is peri- " lous. Some have decreased — and some have suspended busi- " ness. A libera/ encouragement will put them again into opera- " tion. But should it be withheld, they will be prostrated. " Thousandu will be reduced to want and wretchedneas. A capi- *' tul of nearly sixty millions of dollars xvill become inactive^ the " greater part of which will be a dead loss to the manufacturers .^'* Again — " Can it be politic in any point of view, to make the united " states dependent on any nation for supplies^ absolutely neces- *' sary for ease ^ for comfort ^or accommodation'? " Will not the strength^ the political energies of this nation be " materially impaired at any time, but fatally so in time of dilfi- " culty and distress, by such dependence ? * Ihis anticipation has unhappily been vei'ifiod. 200 ADDRESSES. " Do TiQt the suggestions of wisdom plainly show, that the *' security^ the peace ^ and the happiness oj this natini,^ depend on " opening and enlarging all our resources^ and drawing from " them whatever shall be required for public use or private con- " veniencef'' The suffering citizens laid their calamitous situation before congress in the most eloquent appeals, but in vain. No part of the union suffered more than Pittsburg. From the address of that city we quote a single paragraph — " The tide of importation has inundated the country with fo- " reign goods. Some of the most valuable and enterprizing citi- " zens have been subjected to enormous losses^ and others over- " whelmed with bankruptcy and ruin. The pressure of war was ** less fatal to the hopes of enterprise and industry^ than a gene- *' ral peace ^ xvith the calamities arising from the present state of " our foreign trade.'''' Part of the long catalogue of ills, it was out of our power to prevent ; among the rest, the reduction of our commerce, and the consequent depreciation in the value of our shipping. The na- tions of Europe could not be expected to allow us to continue the commerce that naturally belonged to them, longer than suit- ed their convenience. Nor could we by any means have pre- vented the reduction of the price of our wheat, flour, &c. Sec. when a cessation of the destruction caused by war, and the re- turn of so many of the soldiery to the labours of the field, not only increased the capacity of supply, but diminished the con- sumption of Europe. But a sound policy would have averted three-fourths of our sufferings, and mitigated the residue. It would have afforded other employment for our superfluous com- merical capital ; made a domestic market for our cotton ; and fostered our woollen and various other manufactures to an ex- tent almost commensurate with our wants. We enjoyed for twenty years a very great proportion of the trade of the world, far beyond our due share — and, to use the words of an English statesman, were " hardly scratched by our war" of two years and a half. We closed it in a most prosperous situation, calculated to excite the envy of our enemies, and the gratulations of our friends. All that was necessary to insure the permanence of our happiness and prosperity, was to protect our national industry, after the example of all the wise nations of Europe. We fatally abandoned it to a hopeless struggle with foreign rivalship. It sunk a victim in the unequal contest. And our melancholy example is added to those of Spain and Portugal to warn other nations against the rocks on which we have ship- wrecked our happiness. By our system of buying goods where they could be had cheapest, supporting foreign manufacturers, and consigning our own to ruin, we have, during a period of ADDRESSES. 201 profound peace of nearly five years, not only lost all the advan- tages acquired by our long-continued neutrality, but find our- selves in as unprosperous a situation as when the wars of the French revolution began. The transition is immense and lamentable : and we are per- suaded that, except in the case of Portugal at the commencement of the last century, there is no instance to be found in the annals of Europe for two hundred years, of so precipitous a fall in so short a space of time, without war, famine, or pestilence. Spain, which exhibits the mouldering ruins of a mighty empire, fell, it is true, from a higher pinnacle to a lower abyss ; but the descent required centuries of misrule, with bloody wars, and remorseless persecutions. The source of the change is by some of our citizens sought for in the transition of the world from a state of war to a state of peace, which has produced distress, it is said, in most parts of Europe. This idea is erroneous. The distress is far from general. It prevails extensively, it is true, in Great Britain, where machinery, superseding so large a portion of the manual labour of the country, has driven a tenth part of the population to a dependence on the poor rates, and where the nation is borne down by an enormous debt, an expensive government, and grind- ing tythes and taxes. It would be lost labour to prove, what is obvious to the world, that between her case and ours there is no analogy. We have given a faithful picture of the disastrous situation in which this great nation is placed by a mistaken policy. It now remains to trace the outlines of a policy by which the evils we suffer might have been averted — and the course to be pur- sued, in order to extricate ourselves from our embarrassments. We have bought and consumed more than we have sold. Our imports for five years have been above one hundred millions of dollars more than our exports. This solves the mvsterj% The distress and embarrassment arising from all the other sour- ces, would have been but temporary. Bankruptcy and ruin tread on the heels of individuals whose expenses exceed their income. No law, human or divine, exempts nations from the same fate. Spain and Portugal, to which we have so often re- ferred, are standing monuments of the soundness of the maxim, that even inexhaustible mines and rich colonies will not secure the prosperity or happiness of nations that are so misguided as to expose the productive industry of their people to destruction, by the overwhelming competition of foreigners. How much stronger and more irresistibly does the argument apply to the united states, possessing neither mines nor colonies, and whose resources solely depend on the fruits of their industry ! How carefully therefore should that industry be cherished ! 26 202 ADDRESSES. The imports of the united states for the last five years, exclu- sive of what has been re-exported, have been abo jt 420,000,000 dollars, viz. 1815 gl 18,914,000 1816 60,569,000 1817 73,516,000 1818 94,477,0 1819 (J)er estimate) . - . . 74,000,000 g42 1,476,000 Our exports have fallen one hundred millions short of our imports. As this was a result that might easily have been, and indeed was foreseen, it ought to have been guarded against as far as legislation could afford a remedy. The remedv was to exclude, or reduce our consumption of, the fabrics of the old world, so as to bear a proper proportion to its demand for our staples. This was fatallv neglected. It required but little penetration to see that our means of pay- ment were wholly inadequate to meet such enormous imports ; that the countrv must be greatlv impoverished by them ; that its prodactive industrv would be paralized ; and that much misery must be the necessary consequence. All the sagacity of our stntesraen ought to have been put into requisition, to avert the impending evils, and to steer our bark safe through tbe shoals and quicksands, by which she was menaced. Every month made appearances more and more portentous, and more strongly indicated the necessity of adapting bold and decisive measures. Unhappily the views of most of our statesmen were almost wholly bounded by the security of the revenue ! and many were only anxious to avoid '' f-'/xrig- the many for the benefit of the ftiv /"" These were the grand objects of solicitude, and outweigh- ed all other considerations. They viewed with unconcern the inundation of foreign merchandize, which drained our country of its wealth — ruined our manufacturers — and doomed our working people to idleness, to want, and too often to crime ! The more foreign goods came in, the cheaper they were sold, and the higher the revenue rose ! And this appeared to atone for all the disastrous consequences it produced ! On this point, it might be sufficient to reply with Alexander Hamilton — " There is no truth that can be more firmly relied upon, than " that the interests of t lie revenue are promoted hif rvhatever pro- " mvtes an increase of national indnstnj and ivealth.''''^ It requires but little reflection to perceive the cogency of this * Hamilton's Report. ADDRESSES. 203 maxim. A prospierous people will naturally indulge in luxuries, wb.ich are generally brought from foreign nations — and will bear high 'uties. A revenue resting on such a basis would be far more likely to increase than to diminish. It cannot • e doubted tliat the customs at present, considering the impoverishment of the country, and the low state of our credit abroad, afford but a slender dependence for the treasuiy. The united states, if in- dustry were dul) protected, would be far better able to yield a re- venue of 40,000,000 of dollars per annum, than they can now raise 25,000,000. A prosperous nation does not feel the weight of taxation. A tax of half a dollar on each hearth, is more oppres- sive to a poor nation, than a window tax of an equal sum for each pane of glass, would be to a prosperous one. The warning voice of the wise statesmen of this country ag well as of Europe, which bore testimony against the policy we pursued, was totally disregarded. " It would be extending the freedom of trade far beyond its " proper bounds, to admit all the productions of a nation which " prohibits ours, or admits them under duties equivalent to apro- " luiitjon.'''''* " The substitution of foreign for domestic manufactures is a '■^ transfer to Jcreig-n nations of the advantages accruinir from '' machinery in the modes in •u>hich it is capable of being en.ployed " with most ability and to the greatest extent.'''' j " The establishment of manufactures is calculated not only to " increase the general stock of useful and productive labour^ but " even to improve the state of agriculture in particular.^'*-\ "• Considering a monopoly of the domestic market to its own " manufactures as the reigning policy of manufacturing nations, " (t similar policy on the part of the united -states .^ in every proper " instance, is dictated, it might almost be said by the principles " of distributive justice — certainly by the duty of securing to their ^'- oxvn citizens a reciprocity of advantages \ What admirable lessons ! What sublime views ! How la- mentable that they were entirely disregarded ! Our misguided policy is a century at least behind them. The plans of our statesmen unhappily did not extend so far. We once more re- peat, that the hope ol buying cheap goods from Hindostan and Europe — the dread of impairing the revenvie — and the desire of fostering a commerce, which wiis expiring bevond the power of resuscitation, produced a policy of which the fatal consequences will be long felt, not merely by the sufferers, but by the whole nation. Had our government prohibited some leading articles, which we could ourselves have supplied, such as all kinds of coarse * Chaptal. f Hamilton's Report. 204 ADDRESSES. cotton goods, some of the woollen, &c. Sec. and laid ^igh addi- tional duties on those we were obliged to receive from foreign countries, our importations would probably have been diminish- ed one-fourth, without impairing the revenue — and the following salutary consequences would have resulted. 1. There would have been probably 100,000,000 of dollars, less debt contracted to Europe. 2. That amount would have been added to the stock of na- tional wealth. 3. Our whole population would have been maintained in pro- fitable employment. 4. The revenue would have been indemnified by the increase of the duties upon those goods imported, for what it might have 1 St bv the exclusion of the others. 5. As the reduction of the revenue would have been prevent- er , we should not have a direct tax suspended over our heads. 6. We should have paid for our importations by our exports, a d not been obliged to remit government and bank stock in pay- ment. 7. Our commercial credit in Europe, which has received a deep stain, would have remained unimpaired. 8. We should have consumed so large a proportion of our cot- ton, as would have prevented the ruinous reduction of its price in Europe, and produced immense advantage to our planters. 9. Our woollen manufacture would have insured a market for the wool of our Merinos, and prevented the destruction of that valuable race of animals ; to the great benefit of our farmers. 10. Our banks would not have been drained of their specie, and obliged to press on their debtors. 11. We should have escaped the state of impoverishment, embarrassment and distress in which we find ourselves placed. 12. The prosperity universally felt would have increased the -attachment of our citizens to our form of government, and drawn the bands of union tighter. 13. Our citizens would not seek an asylum in Cuba. 14. State legislatures would not have had recourse to the des- perate measure of suspending the collection of debts. 15. Thousands of useful artists and manufacturers would have migrated to our country; and an incalculable amount of " /:Ae muimjacturing skill and capital of foreign nations -would have been '•'• promptly transferred to the united states ^ and incorporated into the doi7iestio capital of the union.^^^- * This sound view is taken from the late report of the secretary of the treasury. It is deeply to be lamented that so obvious and important an idea does not ap- pear to have ever heretofore influenced our souncUs. ADDRESSKS. 205 Although the millions of capital lost by this policy, cannot be regained, nor the thousands whom it has vitally injured or ruined be indemnified for their sufferings — yet in the midst of the gloom that surrounds us, there is matter for consolation, that congi-ess have a remedv completely within their power. All that is ne- cessary is to afford our manufacturing citizens a portion of such protection as England, France, Russia and A usti'ia afford theirs. We should then reduce our wants within our means of pay- ment. The whole face of affairs would at once be changed. Millions of dormant capital uould be put into circulation. Our Industrious population would find immediate employment. Pro- perty of every kind would rise in value. Confidence would be restored. Prosperity and happiness would again visit us with " heahngon their zvings.''^ Although we have already repeatedly stated in detail the pro- lection afforded by those great nations to their manufacturers, we deem it proper to present an outline of it here. Great Britain prohibits, even from her own dependencies, ca- licoes, manufactures of gold, silver, or metal ; laces, ribands, silk goods, &c. and her protecting duties in most cases, are equivalent to prohibition. Manufactures of brass, copper, carriages, thread stockings, clocks, &c. are subject to fifty-nine per cent. ; china and eaithenware, shawls, &c. pay seventy-nine; cottons, cotton stockings, caps, thread, and linen sails, pay eighty-five ; glass manufactures generally one hundred and fourteen ; skins or furs tanned, tawed or curried, and articles made of leather, or where- of leather is the article of chief value, one hundred and forty -two per cent.* Linen, when chequered or striped, printed or stained, is sub- ject to one hundred and forty-two per cent, duty ; but only to sixty-three when not chequered or striped. She hereby secures to her own subjects the profits of the staining and printing.* Against the policy we advocate of affording protection to those of our citizens engaged in manufactures, the leading objections are — I. That it is unjust to tax the many for the benefit of the few. II. That high duties encourage smuggling. I. So much has been written against the protection of manufac - tures, on the injustice of" taxing the many for the benefit of the few," that a large portion ol our citizens are persuaded, that the manufacturers alone are protected, — that this protection is abso- * See British tariff, passim. iiOG ADDRESSES. lately gratuitous — and that neither agriculture nor commerce has any reciprocal advantage. It is hardly possible to conceive of a much greater error. — It is in fact the reverse of truth. We hope to prove — That the protection afforded to manufactures bears no pro- portion in its effect to that afforded to agriculture and com- merce. To arrive at a correct conclusion, it is necessary to define what is meant by the word/^'^J^er^/o^z, as here employed. Otier- wise we might spend our time and that of our readers to no pur- pose. By *■'' protections^ then, we mean such a governmental regula- tion, by duties or prohibitions, as saves any class of our citizens, whether farmers, manufacturers, or merchants, from being un- dermined or ruined by foreign rivals. As we do not pretend to critical exactness, which cannot be deemed necessary, we trust this definition will be admitted, as sufficiently precise to answer our purpose. It is obvious, that in this view, the word has reference not to the amount, but to the effect of the duty : for example, 15 per cent, may exclude one rival article, while Z5 would not another. The former, therefore, is far more complete protection than the latter, in such particular cases. It may be necessary to exemplify this theory. Hemp is a very bulky article in proportion to its value. The freight is high, and amounts to about eighteen per cent. Fine cambrics and mus- lins occupy but small space, and are probably not subject to more than one per cent, freight. It is therefore obvious, that a duty of five per cent, on hemp, and 22 per cent on cambrics, would place the American farmer and manufacturer on precisely the same ground, so far as respects freight and duties ; that is, they would have twenty-three per jCent. advantage over their foreign rivals. But another very important consideration remains. Articles which foreign nations possess great capacity to produce, require stronger protection than those of which the production is more limited. Thus the machinery of Great Britain affording her a capacity to produce nuslins or cambrics to an almost unlimited extent — and the production of hemp being incapable of that ex- tension, a further increase of duty on muslins or cambrics ap- pears necessary, to place the manufacturer on the same ground of security as the farmer. Hence the duty ought to be adjusted on a compoud ratio of the amount of freight and the difficulty or facility of production. We trust these premises are clear and irrefutable, and that they cannot fail to dispel the clouds that have been spread over this subject. AT5T511ESSKS. 207 The great mass of manufactured articles imported into this country, are subj^-ct to duties ad valorem. There are five dif- ferent classes of those duties, seven and a half, fitteen, twenty, twenty-five, and thirty per cent. The amount of the importa- tions of all these descriptions for 1818, was 58,795,574 dollars. There are, however, some manufuciured articles subject to spe- cific duties. But the amount is trivial; as the duties of this description, in 1818, except those on teas, wines, meiasses, spirits, sugar, coffee, and salt, were only 1,591,701 dollars ; un- der which were included oils, cweoa, chocolate, amionds, cur- rants, prunes, figs, raisins, cheese, tallow, mace, nutmegs, clo'. es, pepper, pimento, cassia, indigo, cotton, ochre, white and red lead, hemp, coal, fish, &c. &c. When the duties on these are deducted from the above sum of 1,591,701 dollars, the manu- factured articles, on which the remainder is collected, will, as we said, appear quite trivial. 1 he articles paying ad valorem duties, were divided as fol lows : — g Per cent. of the whole. 2,387,693 a 7\* per cent, equal to about 4 ■ 19,445j525 a 15 equal to .... 3S 9,524,531 a 2J equal to 16 24,S.j4,188 a 25 equal to .... 42 2,633,637 a 30 equal to 4^ . 58,795,574 We annex a statement of the chief articles subject to thos^ several duties. TABLE I. Articles subject to 7^ per cent, ad valorem. Y Articles composed wholly or cliieHy of Lace shawls, gold, Silver, pearl or precious stones, Lace shades. Embroidery, Pastework, Epaulets, Pearls, and other stones, set, Gold watches. Silver lace. Gold lace, "Watches, and parts of watches of all Jeweliy, kinds. Lace veils, • To all the ad valorem duties herein stated is to be added 10 per cent, Thtn 15 per cent is actually 16^, &c. &c. f Add ten per cent, as before. 208 ADDRESSES. TABLE n. Artidts subject to 15 fter cent, ad valorem.* Agricultural. Manufactured. Apricots, Bricks, Apples, Brass in sheets. Beans, Brazing copper. Barley, Bolting cloths. Buckwheat, Combs, Butter, Copper bottoms. Beef, Clocks, and parts thereof. Cider, Corks, Feathers for beds, Gold leaf. Flour Hair-powder, Grapes, Ink-powder, Hams, Linens, Hay, Lampblack, Honey, Maps and Charts, Hair, Manufactures of flax not enumerated;, Indian cori. Paints, Linseed, Printed books. Malt, Pictures, Nuts, Prints, Onions, Paper toys. Oats, Paper snuff boxes. Potatoes, Paintings, Perry, Silks, Pearl Ashes, Slates, Pitch, Starch, Peas, Stuff shoes. Pork, Silk stockings. Pears, Sealing wax. Peaches, Thread stockings. Potashes, Tiles, Quills, Worsted shoes, &c. Rosin, Bice, Eye, Tobacco in the leaf^ Tar, Turpentine, Wheat, &c. &c. TABLE m. Articles subject to 20* per cent, ad valore^n, luholly manufactureU. Buckles, Japanned wares. Buttons, Lead manufactures. Brass manufactures. Muskets, Brass wire. Printing types. Button moulds. Pottery, China ware. Pewter manufacture*, Cannon, Pins, Cutlery, Plated ware. Cloth, hempen Steel manufactures, Cotton stockings. Stone ware. Earthen ware Side arms. Fire arms. Sail cloth. Gut wares. Tin manufactures. Glass, Wood manufactureSj Iton manufactures, Woollen stockings. ' Add ten per cent, as before. ADDRESSES. 209 To a candid public, we submit these three tables for their most serious consideration. The deductions from them are of immense importance to the future prosperity and happiness of this country. We trust they will be found to prove that the prevailing opinions on the exclusive protection of manufac- tures are destitute of foundation — and that, so far as these tables extend, the balance is most unequivocally in favour of agricul- ture, although agriculture itself is not sufficiently protected. Lives there a man who will not admit that Beef, Indian Corn, Pork, Flour, Hams, Wheat, Butter, Tar, are incomparably better protected at 15 per cent, than Clocks, Printed books. Gold leaf. Silk and thread stockings, Linens, Stuii' or worsted shoes, Manufactures of flax, at the same rate ? or than Cliina ware. Plated ware. Cotton and woollen stockings. Printing types. Manufactures of steel. Sail clotii, &c. Pins, at 20 ? We submit the question to the most decided opposer of manufactures in the country, and cannot for a moment doubt the issue. It cannot be denied that hams, boards, Indian corn, tar, and turpentine are better protected by 15 per cent, than buckles, buttons, or cotton stockings, would be by 40 or perhaps 50. The manufactured articles subject to 25 and 30 per cent, re- main. The former are confined to cotton and woollen goods, manufactures of copper, silver and plated sadlery, and coach and harness furniture. Half of the articles subject to 30 per cent, duty, are unim- portant ; do not interfere with our manufactures ; and are not to be taken into view in the present discussion — as Artificial flowers, Mustard, Balsams, Olives, Bristol stones, Ornaments for head dresses, Cosmetics, Perfumes, Comfits, Pickles, Crapes, Sallad oil. Canes, Sticks for umbrellas. Fans, Sweetmeats of all kinds. Feathers, Walking sticks. Mats of flags, or grass. Washes, &c. &c. MiUiner)'^, 27 210 ABDXESSES. There are, however, some important articles included in this class ; among which are manufactures of leather, hats, cloth- ing rea iy made, carriages, cabinet wares, &c. But the amount of the whole class is insignificant, being not four per cent, of the importations of the country for 1818, as may be seen above, p. 20r. We will now compare the highest duties on productions of the soil and on man\ifactures. We select from the former, four ar- ticles, cotton, coal, hemp, and cheese ; and shall add manufac- tured tobacco and snuff, tse duties on which are calculated sole- ly to aid the planter ;* also, spirits, the duties on which are im- posed to aid the farmer directly in the production of peach brandy, apple whiskey, &c. and indirectly in the consumption of his grain. Cost. Duty, dols. cts. dols. cti. Per cent. Liverpool coal, per bushel . - - 13 5 38§ Bengal cotton, per lb. - - - - 10 3 30 Biissia hemp, per ton, - . - . 114 30 26 Holland cheese, per lb. - - - - 10 9 90 French cheese 13 9 70 English cheese 18§ 9 49 Manufactured tobacco .... 10 10 100 Snuff" 20 12 60 Jamaica rum, per gallon 70 48 68 Geneva 55 45 80 Comparison. Per cent. Per cent. Cotton Manufactures! * " 25 Cotton, raw, ... 30 Woollen manufactures - - 25 Hemp - . , - 26 Plated saddlery - . - 25 Tobacco - - . 100 Manufactures of leather - 30 Snuff - - . - 60 Hats 30 Coal - ... 38| CaiTiages - . . - . 30 Cheese > - 49, 70, 90 Cabinet wai-es - - - 30 Rum - ... 68 Geneva - . - - BOi Three of the agricultural articles, which are raw materials, claim particular attention, flax, cotton, and hemp, with the cor- responding fabrics. Duty per cent. Duty per cenf. Flaxf .... 15 Linenf ... - 15 Hemp ... 26 Hempen cloth - - 20 Cotton .... 30 Cotton goods, (above 25 cents per square yard) - - 25 Here we find raw materials subject to higher duties than the artiv;i - manufactured of them ! A case probably without paral- lel in the annals of trade and commerce ! The general practice of t'se wisest nations of the old world, is, to discourage the ex- portation of raw materials ; to admit them duty free, or at least under very iignt duties ; and to burden the manufactured articles * See this point satisfactorily cleared up in the strictures on Mr. Cambreleng's Exanunation oi the tarili, postea. t Add ten per cent, as before. ABDRES8KS. 211 as high as they will bear. The whole of these regulations have two grand objects in view, of which a wise government will ne- ver lose sight — the protection of domestic industry, and the pro- motion of the national wealth, power, and resources. Whereas, in the plenitude of our great wisdom, we burden the raw materi- al with a heavier duty than the manufactures in which it is em- plojed !* Another view of the subject. Cotton, we see, is subject to three cents per lb. duty. The freight is equal to the duty — amounting together to 6^) per cent. Whereas the duty on cottons (above 25 cents per square yard) is 25 per cent. — and freight about one per cent. Wonderful contrast ! Freight and duty. Freight and duty. Per cent. Per cent. Baw cotton ... 60 Cotton manufactiu'es - 26 We are fully persuaded, that the tariff of no country, in the darkest ages of the world presents such a fact as this, so admira- bly calculated to tear up industry by the roots ! It is a centary at least behind the policy of Edward III. and six behind the light of this age. That prince bestowed bounties, immunities, privileges, and premiums for the encouragement of the woollen manufacture, and prohibited the export of the raw material, and the importation of the manufactured article ! We will contrast this portion of our tariff, with corresponding parts of the tariff of France, England, and Russia. French Tanff. D\ity pel- cent. Flax - - - - 1 Linen prohibited. Hemp ... 1 Hempen cloth prohibited. Cotton - - - - 1 Cotton goods prohibited. Cotton is admitted in Russia, duty free — but allkindu of print- ed., stained^ or painted cotton goods are xuholly prohibited. Cotton pays only six per cent, duty in Great Britain, accord- ing to the latest regulations ; but calicoes are wholly prohibited, and all kinds of cotton goods, which are admitted, are subject to 85 per cent duty. It is hardly possible to conceive of a greater contrast than is here exhibited between our policy and that of those great nations. Their policy is that of Colbert, Sully, the Great Frederick, and all the other celebrated statesmen, who rank so high in history — whereas r)urs is exactly similar to that of Spain, Portugal, and Italy. We are in a dilemma. Either we are wiser than all the practical statesmen of Europe, or our system is radically wrong. If we "judge of the tree by its fruits," we may easily decide. Its res alts have been of the most destructive character. • Yet manufacturers are gravely reproached for their inj^ratitude for the pro- tection they enjoy. 212 ADDRESSES. Here we close the subject as respects the comparative pro- tection afForded to the productions of the earth, ai>d to manufac- tures. We trust that every reader who has given it a fair consid- eration, will readily agree that the interests of agriculture have not been overlooked ; that the prejudices that prevail on the sub- ject of the extraordinary protection afForded to manufactures, are not only not true, but the very reverse of truth ; and that a large portion of our manufacturing establishments, for want of adequate protection, are prostrate, and their proprietors ruined. Protection of Commerce. It now remains to ascertain whether the mercantile interest has e--peri' need the fostering care of the government — and whether the merchants are justified in uniting in the everlasting clamour against the manufacturers for "• taxing the many for the benefit of the few." We hope to make it appear, that the policy of our government towards the commercial part of our citizens has been magnanimous and liberal to the last degree, and that it has afforded them as complete protection as was in its power. Hap- py for this country would it have been, had the same liberal and national spirit presided over its councils so far as regards manufactures ! Instead of the lamentable scene we now present to the world, we should exhibit as grand a picture of happiness and prosperity as has ever been witnessed. The policy of England, the wisest nationin the old world, on the subject of trade and commerce, is not, we hope to miake appear, superior to that of our government on this point. In a former address, No. 11, (see ante page 151) we enumerated sixteen acts, or pai'ts of acts, passed for the especial protection of commerce, out of a much larger number to be found in our sta- tute books. Being limited for room, we shall refer to the above address, and shall here confine ourselves to four acts, which will be amplv adequate to establish our position on this subject. The attention of congress was early alive to the interests of the mercantile part of the community — and it has never ceased to watch over them with the most laudable solicitude. By the second act passed by the first congress, the China trade was at one stroke secured to our merchants, by a decisive difference in the duties on teas — viz. In American In foreign vessels. vessels. Cents. Cents. Bohea .... Per lb. 6 15 Souchong- and other black teas - 10 22 On all Hvson teas . 20 45 On all other green teas - - 12 27 There was, moreover, a discrimination of ten per cent, made by the same act in favour of American tonnage in the duties on imports . ADDRESSES. 213 The third act had the same marked and decided character. The tonnage on foreign vessels was fi.\ed at 50 cents — and on American only 6. But even this discrimination was not deem- ed sufficient; for the former were obliged to pav toniii ge for every coasting voyage ; whereas the latter paid but once a year. " Our discriminations operated powerfully in favour ot our shipping. Vessels not of the united states, of two hundred tons burden, on entering our ports, paid twenty pounds sterling ton- nage dut)- ; and for a cargo of the value of two thousand p»)ur ds sterling, they paid fifteen pounds sterling, extra duty, more than did the vessels of the united states, of the same tonnage, ana la- den as aforesaid. These extra charges were sufficient to drive from our ports, the greatest proportion of the foreign tonnage. All foreign nations were affected by the system we had adopted. It seemed to operate like magic in favour of the ship owners of the united states. The diminution of the foreign tonnage em- ployed in our trade, was, with very few exceptions, rapid, regu- lar, and permanent. In 1793, our tonnage exceeded that of every other nation, except one."* From these facts there is no appeal. They are conclusive, and set the question at rest for ever. The effect was to multi- ply the American shipping to an extent un]:aralleled in the his- tory of commerce. The following table exhibits the results. TABLE Of the tonnage employed hi the Lofnn-'erce of this country Jo j' txventy-txvo years.\ American vessels. Foreign vessels. Coasting- ti-ade. Foreig-n trade. Foreign trade. 1796 195,423 675,046 49,960 1797 214,077 608,7u8 76,693 1798 227,343 522,045 88,568 1799 22j,904 626,945 109,599 1800 245,295 682,871 122,403 1801 246,255 849,3u2 157,270 18U2 260,543 798,805 145,519 1803 268,676 787,424 163,714 1804 286,840 821,962 122,141 18..5 301,366 922,298 87,842 1806 309,977 1,044,005 90,984 1807 318,189 1,089,876 86,780 1808 387,684 525,130 47,674 . 1809 371,5j0 603,931 99,2u5 1810 371,114 906,434 80,316 1811 386,258 948,247 33,2u2 1812 443,180 667,999 47,098 1313 430,404 237,348 113,827 1814 425,713 59,626 48,301 1815 435,066 706,463 217,376 1816 479,979 877,031 259,017 1817 481,547 780,136 212,420 7,310,333 15,741,632 2,459,909 Seybert, 294. tldem, 317—18 'il4i ADDRESSES, Total coasting trade, American tonnage . - . row* 7,31 0,33S Foreign trade do. - - , . 15,741,632 American tonnage . - - . . 23,051,965 Foreign tonnage in Foreign trade - » - - 2,459,309 Grand total 25,511,874 Thus it appears that the merchants have, from the commence- ment of the government, enjoyed an entire monopoly of the coasting trade, which employs above 28 per cent, of the whole of the shipping of the country ; and above 90 per cent, of all the foreign trade. The above two acts were the first passed by our government in favour of commerce. We will, as stated above, pass over the long list to be found scattered through our statute books, and refer only to the two last passed with the same ^'iew. — We mean the act on the subject of plaster of Paris, and that mag- nanimous national measure of prohibiting the entry into our ports, of vessels from those colonies of Great Britain, into which our vessels are prohibited to enter — an act of the most decisive and energetic character. Besides the preceding protection to commerce, which, by the exclusion of foreign competition, produces the effect so much in- veighed against in the case of manufactures, of "' taxing- thtina- nyfor the benejit of the few!!'' that is, in plain English, of enhan- cing the price of freight, at the e::ipense of the whole nation, for the benefit of the merchants, there is another species of protec- tion extended to commerce, of a more costly character. It i,3 comprised under four heads. Expenses incurred for — 1. Foreign intercourse — 2. Barbary powers — 3. The navy — 4. War. That the first and second items are chargeable wholly to com- merce, will not be denied. Some question may arise respecting the third — but it is obvious, that for every other purpose than the protection of commerce, 150,000 dollars per annum would be adequate for the navy of the united states. The expenses for four entire years, 1791, 1792, 1793, and 1 794, were below 70,000 dollars. On the subject of the fourth item, there will be still more di- versity of sentiment. It requires, however, but a moderate por- tion of candour to admit, that nine-tenths of all the difficulties we have had with foreign powers, have arisen wholly from com- merce. From the wholesale depredations of 1793, down to the orders in council and the Berlin and Milan decrees, every page ABDKCSSES. SIS of our history ^ears this solemn truth in legible characters, that we should h;ive steered our bark in ^jeace through all the tremen- dous convulsive struggles of the wirs arising from the French revolution, but for the collisions caused, by our commerce. We state two facts within the knowledge of every man acquainted with our affairs for the last twenty-five vears. When about three hundrc'J of our vessels, engaged in the trade with the French colonies, were seized in 1793, we were in the most imminent diiiiger of war — various retaliatory measures were proposed in congress, among which the sequestration of British debts stood conspicuous. Nothing saved the country from a recourse to arms at that time, but the interference of the president, and the mission of Mr. Jay to London. In 1805 — 6. the depredations were renewed with additional violence, and the merchants from Nevvburyport to Baltimore were most importunate in their re- quisitions on congress, for protection and redress, whence arose that series of restrictive measures which a few years afterwards eventuated in war. We will now state, the expense incurred for the naval depart* ment foreign intercourse, and Barbara powers, for 20 years — and for the military department for four, embracing the three years in which war raged and the succeeding one. \aval department. Foreign intercourse Barbar}- powers. 1796 274,784 1j9,739 75,120 1797 382,631 172,5J4 497,284 1798 1,381,347 242,711 214,717 1799 2,858,081 199,074 72,000 1800 3,448,716 185,145 210,142 18^1 2,111,424 13^,851 155,825 18v2 915,561 416,253 134,672 18J3 1,215,230 1,001,968 108,866 1804 1,189,832 1,129,591 57,063 1805 l,597,5u0 2,655,767 142,259 13u6 1,649,641 1,613,922 146,499 1807 l,722,u54 419,845 157,980 18>.8 1,884,067 214,233 90,759 18v9 2,427,758 74,918 91,387 ISlj 1,654,244 48,795 32,571 1811 1,965,566 181,746 83,158 1812 3,969,365 297,327 50,376 1813 6,446,600 153,791 56,170 1814 7,311,290 163,879 13,300 1815 8,660,000 223,781 67,110 §53,055,691* §9,644,84^.'* J^2,349,568* Expenses of the military department during the years 1812, 1813, 1814, 1815. 1812 §12,022,798 1813 19,747,013 1814 20,507,906 1815 15,208,794 — 67,486,5111 *Seybert,718. t Ids'" 712. 216 ADDRESSES. Expense incuiTed in twenty yeai-s for the naval department, - jg53,055,6§l Foreign intercourse ...... 9,448,140 Barbaiy powers ..--..- 2,349,568 Military department for four years - - . - 67,486,511 Total - - - - - A - §132,339,910 In order duly to appreciate the proportion these expenses bore to our commerce, we annex a statement of the exports from the united states for the same twenty years, from VJSi^ to 1815, in- clusive. Domestic Exports. | Foreign Exports. | 1796 - - - - - 40,764,097 26,300,wOO 1797 29,850,206 27,000,000 1798 28,527,u97 33,000,000 1799 33,142,522 45,523,000 1800 31,840,903 39,13u,877 1801 47,473,204 46,642,721 1802 36,708,189 35,774,971 1803 42,205,961 13,594,072 1804 41,467,477 36,231,597 1805 --..-. 42,387,002 53,179,019 18u6 41,253,727 6.j,283,236 1807 48,699,592 59,643,558 1808 9,438,546 52,997,414 1809 31,405,702 20,797,531 1810 42,366,675 24,391,295 1811 45,294,043 16,022,790 1812 30,032, lu9 8,495,127 1813 25,008,152 2,847,845 1814 ... ... 6,782,272 145,169 1815 45,974,403 701,606,879 6,583,350 608,583,572* Domestic exports . . . - - Foreign - , . - - Total exports . - - - - - Expended for protection of commerce, as above stated 701,606,879 608,583,572 1,309,190,451 §131,516,912 It therefore irresistibly follows, that the actual disbursements for the protection of commerce for twenty years, have been eleven per cent, of the whole amount of our exports, domestic and foreign — and nearly twenty per cent, of the domestic ! A,nd yet we repeat, the merchants unite in the cry against the expense incurred for the protection of manufactures ! although the go- vernment from its first establishment has never paid one dollar. * Seybert, 793. ADDRESSES. 217" as loan, premium, or bount , to encourage, foster, or promote that portion of the national industry employed in manufactures ! Let it be observed that the manufacturers, while they have been so frequently the objects of jealousy with their fellow citi- zens, have had the magnanimity never to prefer a complaint against the protection afforded to either farmers or merchants, or the enormous expense incurred in defence of the latter. Nor would we wish it understood that we regard the fostering care bestowed on them as otherwise than the duty of the government. Our object is merely to bring the subject fairly before our fel- low citizens, and to prove that both agriculture and commerce are far more adequately protected than manufactures. It may be useful to compare our system of *■'■ purchasing •where goods can be had cheapest^'' and not "• taxmg tne many for the benejit of the few^^'' with that pursued in France, and to cast a glance at their results. Mons. Chaptal, minister of the Interior, during the reign of Bonaparte, published, a few months since, a detailed and most exhilarating view of the affairs of France, and of the policy that has led to her present prosperit\'. The product of the manu- factures of that country, in 1818, was 1,820,000,000 francs, composed of the following items : — Domestic raw materials ... - francs 416,000,000 Foreign do. 186,000,000 Laboiu- - - ... - - 844,000,000 Various expenses, as interest, firing, repairs, &c. - - 192,U0U,U00 Profits of the manufacturer .... 182,000,000 Total, 1,820,000,000 Equal to about ... - - dollars, 360,000,000 France waged the most sanguinary wars for above twenty years. She was afterwards crushed by rapacious and depredat- ing armies — and subject to a military contribution of above 100,000,000 of dollars. Yet she has already recovered from all her disasters, and is now the most prosperous nation in Europe, should the mighty secret be asked, by which this all-important change has been effected, it is reducible to a few words — she was not afraid of the ideal danger of " taxing the manij for the bene- fit of the feix}^ She protected the industiy of her subjects, making a small temporary sacrifice for an immense permanent benefit. While our statesmen were calculating about saving 8, 10, or 12 cents per yard, by buying goods in Europe and in the East Indies, she for a while bought at home at double price, in preference to purchasing cheap abroad. She trusted that competition would produce the effect it has ever produced, that is, to bring prices to a proper level. The magnanimous policy 28 218 ADDRESSES. Succeeded — and now affords a rich harvest of private happiness and public prosperity. We have bought cheap abroad — and dis- tress overspreads our land ! She bought dear for a while at home, and is repaid ten fold for the temporary sacrifice ! It is but just to state her policy in Chaptal's own words ; — We hope thev will sink deep into the minds of the statesmen and politicians of this country. " Our casimers cost twenty-five francs per ell, to the manu- ^^ facturer^ at the commencement of our operations The English *' offered them at half price, to the consumer. Our cambrics and " calicoes, ill manufactured, cost us seven to eight francs. The " English delivered theirs at three. *' Ought we, therefore, to have renounced this project of ma- " nufacturing conquest? No. It was our duty to persist and im- *' prove. This therefore is the course we pursued. And we *' have arrived at such a degree of perfection, that our industry " excites the jealousy of those from whom we have borrowed it. " If, during twelve or fifteen years, in which we pursued our " essays, our researches, our experiments, we had not excluded *' the competition of foreign rival articles by prohibitions.^ I ask ** of the partisans of fifteen per cent, duty, what would have be- *' come of this admirable industry, which constitutes the orna- " ment, the glory, and the riches of France ?"* Smuggling. While ruin was successively swallowing up various manufac- tories, and reducing to bankruptcy their owners, who were shut out of the markets of foreign nations by the wisdom of those nations — and deprived of their own by the want of protection, their prayers and supplications were met by a clamour against the danger of smuggling that would arise from high duties. On this real or supposed danger, the changes have been rung from New Hampshire to Georgia, and from the Atlantic to the Mis- sissippi. Whatev^er might be the sufferings of the manufacturers, the assumed danger of smuggling was regarded as a conclusive * " Nos casimirs coutoient 25fr. I'aune au fabricant, dans le principe ; et les " AngloisofFi-oient les levu's au consommateur, a moitie piix ; les percalles, les ca- " licots, mal fabriques, nous revenoient a 7 a 8fr. I'aune ; les Anglois les livroient « a 3fr. " Falloit-il renoncer a ce projet de conquete man\ifacturiere ? Non, ilfalloit " persister et se perfectionner. Cest aussi la marche qu'oji a suivie : et nous *' sommes airives a un tel degre de perfection, que notre Industrie excite « aujourd'luii la jalousie de la nation qui nous I'a transmise. " Si, pendant douze a qainze ans qu'ont dur^ nos essais, nos rechercbes, nos " tatonnemens, on n'avoitpas ecart^ du concours, par la prohibition, lesproduits *' etrang-ers, je demande aux pailisans des 15 pour cent, ce que seroit devenue « cette belle Industrie qui fait I'ornement, la gloire et la richesse de la France ?" -^De I'Industrie Francoise, torn. II. p. 431. ADDRESSES. 219 and unanswerable argument, and as forming an insuperable bar against making such a radical change in the tariff as would af- fo)d them protection. An objection which is regarded as so powerful, and which closes the ears of the national legislature to the cries, and shuts their eves against a view of the distresses, of so large a body of their fellow citizens, ought to he founded on an impregnable ba- sis — and demands the most rigorous scrutiny before it be ad- mitted as orthodox. An error on such a point is liable to pro- duce deleterious consequences. We shall therefore once more investigate the ground on which it rests, although we have already discussed the subject. Re- duced to plain English, it is — 1. Smuggling is a dreadful and demoralizing evil that ought to be avoided. 2. High duties encourage smuggling. 3. Therefore high duties ought to be avoided. To render this reasoning applicable to the case in hand, two things are necessary to be proved. If either fail, it fails to the ground :— 1. That the duties requested by, or necessary to afford ade- quate protection to, our manufacturers, would be so immode- rately high as to encourage smuggling. 2. That our duties, in general, are calculated on a moderate scale, predicated on a dread of the danger of encouraging smug- gling by high duties. Neither of these positions is founded. We will specify a few out of a great variety of manufactures, which have been either wholly ruined, or greatly impaired in their progress, since the peace, by the inundation of rival arti- cles, and hope it will appear to our readers, that the duties might have been raised to double their present amount — so as to pre- serve the manufactories, without danger of smuggling — and with- out impairing the revenue. Gold Leaf; Slates, Linens, Sealing wax, &c. &c Manui'actiires of flax, are subject to fifteen per cent. — Manufactures of Steel, Earthen ware. Brass, Japanned ware. Glass, Pottery, Iron, Stone ware. Lead, Woollen stockings, are subject to twenty per cent. — And Fine cottons, and ^ Woollens^ are subject to twenty-five per cent. 220 ADDRESSES. Of these manufactures, several, which, in consequence of the exclusion of foreign rivalship, were in a flourishing state during the war, have since been laid prostrate A duty of 30 per cent, on some, and 35 on others, would have effectually secured them. Novt^, we freely appeal to men of candour and fairness, wheth- er those duties would have been more likely to produce smug- gling than the duties we have stated, on snuff, tobacco, rum or gin at sixty or eiglity or one hundred per cent. ? or those which we shall produce in the next table ? Will it be asserted, that if pottery, for instance, had been sub- ject to a dutv of 60 or 80 per cent it would have been more like- ly to be smuggled than any of those articles ? Surely not. The idea is inad-oissible. On the second head, the objection still more completely falls to the ground. Our tariff imposes duties on various articles ex- travagantly high. — We have already stated the cases of cheese, manufactured tobacco, snuff, rum, and Geneva. We proceed to wines, teas, and salt. Price.* Duty. Duty. cents. cents. n.;r cent. Sherry wine, per gallon, IJO 60 68 Lisbon wine 125 60 48 ^ Imperial tea, per lb. . 65 50 78 Hyson .... 40 40 100 Young- Hyson 40 40 100 , Hyson Skin 24 28 116 Souchong 27 25 98 Bohea .... 13 12 90 Salt, per bushel, 16 20 125 Thus it appears that there are no terrors felt on the subject of smuggling, when those articles are in question which do not in- terfere with the national industry ! On these 50, 60, 70, 80, 90 and 125 per cent, are unhesitatingly imposed. But when those manufactures are to be dutied, of which we have the raw mate- rial to the utmost extent of our wants (as, for instance, cottons, and, with some qualification as to present supply, we might add woollensj water power to manufacture them without limitation — and industry and enterprise never exceeded in the world — then the appalling spectre of smuggling arises, at the mention of 35,40,45, or 50 percent, to blunt the feelings of our legislators — to ruin a large and valuable portion of our citizens — to make us tributaries to foreign nations, on whom our treasures are wan- tonly and prodigally lavished — and to tear up by the roots a large portion of the productive industry, the wealth, power and re- sources of our country ! ! * Cost at the places of shipment respectively. ADDRESSES. 221 To these facts we most earnestly invite the attention of those who have anv thing at stake on the welfare of th' ir country. In five years, we repeat, without war, pestilence, or famine, we have fallen from a towering eminence into an abyss, where we find bankruptcy ; character impaired at home and abroad ; forced idleness, misery, and distress, among thousands able and wil- ling to work ; demoralization ; emigration of our citizens in quest of an asylum which their own country does not afford them ; and ^n^XXy legislative suspermions of payment. We believe the great mass of those evils due to the policy we have pursued, the antipodes of that of all the wise nations of Europe — but the counterpart of that of Spain and Portugal. Nothing can save us but a full and complete protection of the domestic industry, which we fervently pray, may take place without delay, for the happiness of our citizens, and for the honour of our republican form of government. AMERICAN MANUFACTURES. An adjourned meeting of the citizens of the city and county of Philadelphia, friendly to American manufactures, was held in the county court house, on Saturday, the 2d of October, 1819. Matthew Lawler, Esq. Chairman. C. Raguet, Esq. Secretary. £ . The committee appointed for the purpose, presented the fol- lowing REPORT. The committee appointed by a meeting of the citizens of the city and county of Philadelphia, held on the 21st August, at the county court house, to make enquiry into the situation of the manufactures of the city of Philadelphia and its vicinity, in 1814, 1816, and 1819, beg leave to report — That they have performed the duty assigned them with as much attention as in their power; and regret that notwithstand- ing all their diligence, they have been able to procure the neces- sarv information from only thirty branches of manufactures, of which they annex the result. Although they made report in part, on the 4th ult. containing a statement of the situation of seventeen branches, they judge 222 REPORT OP A it proper to present their fellow-citizens with a connected view of the whole together; so as to enable them to form a correct estimate on a subject of immense importance not merely to the welfare of this community, but to the wealth, power, and resour- ces of our common country ; which never can be really indepen- dent, while it continues to buv more than it sells — paralizes the industry of its citizens, neglects its domestic manufactures, and supports those of foreign nations. Cotton Hosiery Hiread i^ilver Plating "^niithery Coach making Chemicals Fiatting Carving and Gilding f'otterv T'obacco Pipes Printing Ink Book Printing T^ypeFoundery Brass Foimdery •'j'ire Factory F'oor Cloth manufactory Woollen ron Castings Paper making, 95 vats Copper smith and tin ware Giinsmithery Cabinet making Brush making Plaster and Stucco Bricklaying Patent Lamp making Morocco Leather, &c. Rope making Paper hanging and playing cards Branches of Manufactures.* oc to >-» j-i tsa •-» I-" 1-4 ■ ^ *- 1 ■S 2. — -'OlOOis30>l^-<(CMCnotOOo!-JO»03i\Dt-'60tOt^OC:>-»OOaf-. K3 >-• CO COOCOOtJOCfjNjJOpa-vJCrjcjjtsO OS*^-^Ot--J Oi - *>-'^ - 03->t^^oc--i-Ni03o«o»aiC30j-v»o^4^-vi-<(.f^c«oo vj to oo co oo >t-xL 5iJ yj 2J 55 295i; S7<^^ 005M o o o 03 40 o I-" .f>. ot ot o o o o< *' oj OiO 05 OO O O O Ot Of c to Na O O O {O*- O-M CO O Oi o o o o --i -m KS|l-K5|M Wtft00~>l00-^tr»-S00eOtfth-'0aifi.^C^i|i.tr,^ CJt CTi00OiChC<3 ^ oicjjOooooo>oooii-'o»o.ooo oo kI^-ooo a. OOtOtOO OOO O ^O O *>-t3000 S wo 03 .{^OOCCTi Oi ' >0 1-* lOlO Oi Ot CJt oo to 0» 0« trt to *. Ol O >f>- CTi ^ 00 0>CTl-00 03 tn 00 *». ■^^ o tutooooooooc CO 00 w» to O tuOiOOOOtOO oc 00 to 5^ to >-» l-i l-» l-i tn to -s 03 CO CTi a> -M cft t-i it' OOxOO O iO~^03 0*^ CO o to)-' o Tanners Curriers Dyers Brick makers Chair makers Glovers Embroiderers Calico printers Turners WheelwTights, &c. &c. It is obvious that these branches must have partaken of the general decay of business — but it is impossible to ascertain in what proportion. We do not pretend that the above statements are critically exact. It is obvious, that it would be hardly possible to render them so, unless they were collected officially by public authority. But from the characters of the citizens who have furnished our data, we can confidentlv assert, that if there be any errors, they are neither numerous nor important ; and that any slight excess in some is amply counterbalanced by deficiencies in others ; of the latter description some have already fallen within our know- led j2;e. The preceding table demands the most serious reflection of our citizens. It is fraught with instruction. The following is an analysis .* Average of 1814, and 1816. 1819. Diminution. Persons employed, Weekly Wages, W'ages per annum. 9,425 §58,340 §3,033,779 2,137 S12,822 §666,844 7,288 §45,518 §2,366,935 Thus in the articles of wages alone, there is in thirty branches of manufacture, an actual aimualloss of §2,366,935 00 Supposing the materials only equal to the wages, they amount to 2,366,935,00 Annual amount of productive industry smothered by our present system, 4,733,870 00 In this city and vicinity, there are, it appears, 7,288 persons thrown idle. And it is far from unreasonable to presume, that on every person thus deprived of employment, at least two oth- er persons depend. Hence it follows that no less than 21,864 persons are bereft of maintenance in thirty branches of business, in one single district of no great extent, not forty miles in di- ameter. 224 HEtORT QS" A The pecuniary loss arising from this state of things may be calculated with tolerable certainty. But who can calculate the injuries of another description that flow from it I The demoral- ization that necessarily results from want of employment, and its attendant, dissipation ? the heart-rending pangs felt by pa- rents, whose prospects of supporting their families are blighted and blasted ? the numerous estimable females accustomed to earn a subsistence by spinning, and other employments adapted to their sex, and whose wants and distresses may force them to a life of guilt and wretchedness ? the vice and immorality, to which children are exposed by a career of idleness ? in a word, the flood of evils, moral and political, which are let loose on so- ciety, by the existing state of things ? It would far exceed the bounds of this report, to enter into de- tails on those various branches of business. This must be left to the reflection of our citizens, and of the legislature of the united states, who alone are competent to apply a remedy to the exist- ing evils. But we cannot forbear casting a glance at one partic- ular branch, in order to establish the impolicy of our system. The basis of the paper manufacture is a raw material, com- pletely worthless for any other purpose. All the produce of it, therefore, is clear gain to the community, and a solid substantial addition to the wealth of the countrj^. We exhibit a compara- tive view of the state of this branch in 1816, and ISIQ*. 1816. 1819. Diminution. Workmen employed 950 175 775 Annual wages, ^247,000 §45,000 !S202,000 Annual production ^760,000 !S136,000 g624,000 Tons of rags worked up 2,600 472 2.128 Thus in one single branch, of little comparative importance, an annual loss of 624,0(;0 dollars is incurred in the vicinity of the city ; and 775 persons are rendered destitute of employment, many of them men and women with large families. This is inde- pendent of the sacrifice of the capital of the employers, which in many cases is reduced to one half of its former value. Our policy is in direct hostility with that of all the wise na- tions in the world for four or five hundred years past. They have always held out inducements to the migration of artists, mechan- ics, and manufacturers, whom they have received with open arms, and fostered and cherished, frequently by bounties and immunities. In some countries the emigration of such persons is made penal. But alas ! with us the same ruinous policy that depres- ses the industry of our native citizens, discourages the migration to our shores of foreigners devoted to manufactures. Alku'ed by the advantages of our excellent form of government, hundreds and thousands of them come to enrich us with their capital, their talents, and their industry ; but on their arrival they find no room for the employment of either industry, talents, or capital. Many PHILADELPHIA COMMITTEE. 225 »f those who seek support here in their respective trades and professions, are obliged to earn a maintenance by low and servile occupations, in which their skill and talents are literally thrown away ; many, to our knowledge, have been reduced to mendicity; and hundreds are driven to Canada or Nova Scotia, or obliged to return to their native countries, where they hold out a beacon to others, not to try their fortunes in this new world. To En- gland no less than one hundred lately returned in one vessel. We beg leave to repeat, what we stated in our former report, that most of these manufactures are prostrated not for want ol protecting duties, but in consequence of the general impoverish- ment of the country, arising principally from the want of protec- tion to the great leading branches of cotton, wool, and iron. A large portion of our inanufactures, including the chief of those depending on manual labour, have succeeded completely : and it is a singular and striking fact, notwithstanding the high price of labour is so often urged against the encouragement and against the chance of success of manufactures here, that we yield the palm chiefly in those branches depending on machinery, in which from our numerous mill-seats, we have cdvantages beyond any nation in Europe. A trite observation is used to palliate our suiFerings, which, as it diverts public attention from their real sources, and thus may prevent the application of an adequate remedy, deserves to be met and refuted. We invite your attention. It is asserted that the present is a season of general stagnation and embarrassment ; that the commercial world is every where involved in distress, the necessary consequence of the transition from a state of war to a state of peace ; and that we only partici- pate in the general suflJering, from which we have no right to claim an exemption. These views, however plausible, are destitute of foundation, and are wholly unsupported by facts. That there is great dis- tress in certain parts of Europe, we admit ; but it is far from be- ing as general as is asserted. Manufactures and trade are in a flourishing state in France, Russia, a«d~th©^^thei-lands, in con- sequence of the wise system of protecting national industry, pursued in those countries. The first, it is stated by travellers of undoubted veracity, was never in a more prosperous situa- tion. But admitting for a moment, that distress and embarrassment were not only general, but universal in Europe, it by no means follows that they should extend to this countrj'. The nations of that quarter, with hardly any exception, were for twenty years wasted and consumed by a devouring war Most of them were subjected to the often-repeated rapine and depredation of count- less hordes of licentious and rapacious armies, which levied on 29 229 KEPORT OF A them most exorbitant and ruinous contributions. Their people are generally subject to grinding taxes, rack-rents, and oppres- sive tyth«^s. Their national debts are enormous, and their gov- ernments expensive — supported by numerous standing armies, a burc 1 en to the rest of the comii! vusity . We ask our fellow citizens, what analogy can be found between their situation and ours ? None. — As well might we compare the decay and decrepitude of seventy, to the vigour and alacrity of thirty, as compare some of the European nations with the united states. For nineteen successive years we enjoyed as numerous and as important advantages as any nation ever did. We carried on a most extensive and lucrative commerce with all the world, and •were the carriers for a large portion of the commercial nations. We were at war only about two years and a half, during which time our manufactures made a progress not often equalled, and perhaps never, under similar circumstances, exceeded. We closed the war with honour and glory, and in a state of high prosperity ; our debt is moderate ; our public contributions light; our government unexpensive ; direct taxes are hardly known. — We pay no tythes ; as the support of the clergy is wholly volun- tary; — ninety-nine out of a hundred of our farmers and planters own the soil they cultivate ; our people are ingenious, industri- cvts, and persevering : yet notwithstanding all these, and various other advantages, in three years, without war, famine or pesti- lence, we have fallen from a high grade of prosperity. Distress in a greater or less degree pervades the nation ; property of al- most every description has fallen 10, 20, 30, 40, 50. or even 60 per cent. Industry is generally paralized, and every class of our citizens is embarrassed, except public officers, whose salar- ies remain unaltered, notwithstanding the rise in the value of money, and likewise great capitalists, who are enabled to possess themselves of the property of the distressed at one half or two- thirds of its value, and in some cases at one-third. But with our system it could not be otherwise. It never has been otherwise with nations whose industry has not been protect- ed. Had we, like the Spaniards, the mines of Potosi, we should, like them, be impoverished, under a system which opens our ports to the manufactures of all the world, while most of its markets are shut, not only against our manufactures, but in some cases against the most important produce of our soil; a system where- by we are deluged with immoderate quantities of luxuries, which we do not want, and of necessaries and conveniences, with which we could supply ourselves ; a system which prodigally la- vishes the wealth and resources of our countiy, to support the ag iculture, manufactures, trade, and commerce, of foreign na- tions, and stints and starves our own — consigning our fellow citi- PHILABELPHIA COMMITTEE, 22?" zens to distress and wretchedness : And thus, under the best fori;; of government in the world, we wantonly inflict on our- sel\ es many of the most serious and oppressive evils of the wor^t ; for it is an awful truth, winch we wish to be sounded in the ears of all the constituted authorities of the united and indi- vidual states, that there is no country in the civihzed zuorld^ in Ziihich the clas.s cj maniifa(:tiirers\ -who have at all times been most zenloKslu cherished bu al I wi>--e governments, are in a more unprotect- ed i.itu< it ion, than in the wiited states. There is not a greater dif- ference between light and darkness, virtue and vice, than be- tween the fostering care bestowed on manufactures in England, France, Austria and RusTia — and the cold and chilling neglect which the successive applications for relief, made to Congress, by our manufacturers in 1816, 1817, 1818, and 1819, have expe- rienced. They produced no more effect, and were treated with no more respect, than the applications of the congress of 1774, to the ministers of his Britannic majesty. And in fact, it is a melancholy truth, that the manufacturers of the united states are almost as completely unrepresented in Congress, as this coun- try, when in its colonial state, was in the British parliament : and history is replete with proofs that when the power of a country is exclusively vested in one portion of its people, the others rarely experience the beneficent consequences resulting from that " even-handed justice" which " does as it would be done by." The committee believe that one of the chief ends of govern- ment is the protection of property acquired, and protection in the acquisition ot property ; that so far as respects the latter ob- ject, a laige portion of the manufacturers are debarred of this right ; that it is impossible for one large class of citizens to suf- fer without the others participating in the distress ; and finally that although the manufacturers are the first and greatest suf- ferers by this baleful policy, which sacrifices their industry to that of foreign nations, yet, that the impoverishment of the coun- trv, arising from that sacrifice, has spread itself over the whole of the united states with the two exceptions already specified. Although not exactly within the duty enjoined on your com- mittee, they judged it not improper to exhibit a statement of the depreciation of the value and income of real estate in the city of Philadelphia, in order more fully to corroborate the view they have given of the existing distress. Of 85 houses in six continuous squares in Market street, which were in 1818 rented for - jg88,260 There were, one month since, only 49 occupied, which rent for 35,205 Dimininution of annual income in part of a single street - 53,055 And there were n« less than 36 houses wholly unoccupied. 228 REPORT OF A In those squares, many of the houses are under lease, and therefore have undergone no change in the rent ; and many are occupied by the owners, Of both descriptions no notice is taken. This view is wholly confined to houses of which the rent has been lowered, or which are unoccupied. And on an examination of sundry streets, being about three- fourths of the whole city, there were found, a fortnight since, not less than about 400 houses unoccupied. On a careful examination of the subject, your committee re- spectfully submit for consideration the following resolutions : Resolved^ That it is clearly established, on a careful examina- tion, that the industry of a very large portion of the inhabitants ol this city and its vicinity is completely destroyed, whereby thousands of useful citizens and their families are deprived of employment, and reduced to distress and difficulty. Resolved^ That the great difference between our situation, and that of those countries in Europe, which at present suffer distress and embarrassment, together with the solid advantages we pos- sess, forbid the idea that our embarrassments are owing to the transition from a state of war to a state of peace. — ^(2 dissenting voices.) Resolved^ That the grand and primary cause of the prostrate state of our manufactures, is the extravagant inundation of fo- reign goods poured into our country, in consequence of the want of adequate protection for the national industry ; which goods are sold at such reduced rates as to deprive our citizens of a chance of sale of their manufactures ; whereby our country is plunged in debt, our wealth drained away to support the industry of fo- reign nations — and a heavy permanent annual tax imposed on us, to pay the interest of the government and bank stock, remitted in payment for those goods. — (1 dissenting voice.) Resolved^ That the intercourse between the united states and most of the countries of Europe, is carried on without adequate reci- procity ; as our chief manufactures, and even some of our agri- cultural productions, are there excluded by positive prohibitions, or by extravagant duties, while our government prohibits no ar- ticle whatever, and imposes on foreign manufactures duties com- paratively light, and wholly inadequate for protection. Resolved^ That it be earnestly recommended to the friends of the welfare of their country, to unite their exertions to induce congress, at its next session, to remove the source of the evils under which the nation labours, by such a modification of the tariff, as will afford protection to the industry of the citizens of the united states, equal to what is afforded by the monarchies of Europe to the industry of their subjects. Resolved^ That the committee of correspondence appointed on the 4th ult. be a standing committee to correspond with such ci- PHILADELPHIA COMMITTEE. 229 tizens of this and the other states, as may be disposed to co-ope- rate in the support of the national industry. Resolved^ tliat it be earnestly recommended to the citizens of Boston, New- York, Baltimore, Wilmington, Pittsburg, and all other places, where industry is paralized, to appoint committees to make enquiry into the rise, progress and decline of their ma- nufactures respecti'. eiy, in order to lay the result before congress, at their next session, so as to enable that body fully to appre- ciate the ruinous consequences of the existing policy, and to ap- ply an adequate remedy. Resolved^ That the memorial adopted at the meeting on the 4th ult. together with the proceedings of this meeting, be trans- mitted by the committee of correspondence to the members of the general and state governments, and to all the post-masiers in the united states. Resolved^ That Thomas Leiper, M. Richards, James Ronald- son, Z. Phillips, and Thomas F. Gordon, be a committee of finance, for the purpose of raising subscriptions to defray the expenses of the publication of these documents. A letter from the secretary of a society formed in Boston, for the purpose of encouraging domestic manufactures, to a ci- tizen, was read — whereupon it was Renolved^ That the committee of correspondence open a com- munication with the said society upon the objects for which they have mutually been established. The question being severally put on those resolutions, they were duly agreed to. Adjourned to meet at this place on the last Monday in No*- vember next. MATTHEW LAWLER, Chairman. CoNDY Raguet, Secretary. October 2, 1819. Circular letter from the committee appointed at a meeting of the citizens of Philadelphia^ held October 2, 1819. CITIZENS, Having been appointed, by a large and respectable meeting of the citizens of the city and county of Philadelphia, a com- mittee to correspond with persons throughout the united states, friendly to the protection of national industry ; and also to circu- late the proceedings of that meeting, with their memorial to con- gress; we take the libertv to address you on those subjects. That distress and embarrassment pervade our country, to an extent probably never before felt here, except during the period 230 CIRCULAR LETTER. that elapsed between the close of the revolutionary war, and the adoption of the federal constitution, cannot be denied. A large proportion of our manufacturing establishments are suspended, and nine-tenths of those that are in operation have greatly curtail- ed their business. Of the proprietors, many are ruined, and those whom strength of capital, or other advantages, have ena- bled to maintain the struggle, are encouraged to persevere, mere- ly by the hope of a favourable change in the policy of our govern- ment. The situation of a large portion of the workmen is truly deplorable. Numbers of them, with their families, are destitute of the means of subsistence ; hundreds are working at laborious employments, for little more than their bare food ; and many es- timable men and women, with large families, are absolutely dri- ven to beggary. Numerous emigrants, who, under many incon- veniences, have come to this country, in the flattering expecta- tion of having full employment in their various arts and trades, and enjoying the benefits of a free government, have been placed in the melancholy alternative of begging or starving. No small proportion of those who had the means, have returned to Eu- rope, with disappointed hopes and broken spirits. Real estate has _every where fallen one-third, one-half, and in many cases three-fifths ; our bread-stuffs are greatly reduced in price, chiefly in consequence of their exclusion from the markets of that coun- try which has maintained with us as lucrative a commerce as ever existed ; a country which purchases our cotton at twenty, twenty-five, or thirty cents per pound, and returns it to us, im- proved by machinery, at two, three, and four dollars per pound. Our towns and cities, instead of being peopled with an active population, whose productive industry would add to the power and resources of their country, and promote their own happi- ness, are crowded with hucksters and retailers of the products of the industry of foreign nations, who are so numerous that the business affords them but a sorry subsistence. Of the mer- chants, who, a few years since, carried on an extensive com- merce, some for twenty, thirty, and forty years, one-third, or one-half, are ruined. Our ships are a burden to their owners, whose utmost sagacity can hardly find out profitable employ- ment for one-fourth of them ; they are rotting at our wharves, and are often sold for thirty, twenty-five and even twenty per cent, of their cost. The farmers have not escaped the general distress ; as thousands of farms, throughout the united states, are under execution ; and, whenever brought to auction, are sa- crificed, on an average, at half what they would have sold for two or three years since. In this appalling state of affairs, indifference would be crimi- nal. The sacred duty every citizen owes to his country, im- periously requires exertion. It behoves every man, who ha^ CIRCULAR LETTER. 231 acquired property by honest industry, and finds it, without any fault of his own, melting in his hands, like snow before the sun; wh<; has goods which he cannot sell ; real estate which he cannot mortgage or dispose of, to relieve himselt ; debts due, which his ho- nest debtors are unable to pay, in consequence of the general stag- nation ; who has industry or talents of any kind, on which he relies for a decent support, but is unable to find employment for them ; in a word, it behoves every man, who has a spark of pi-.blic spirit, or any stake in the general welfare, to probe the festering ulcer of public distress to the bottom, in order to ascertain its real source, and whether a cure is hopeless. If not, to discover what is the remedy, and how, when, and by whom, it ought to be applied. We are persuaded that it may be laid down as a general rule, which will scarcely admit an exception, that a nation like ours, whose citizens are ingenious, enterprising and industrious ; which possesses almost every variety of soil and climate, as well as of vegetable, animal, and mineral productions ; enjoys a free and unexpensive government ; is unburdened by tithes or grind- ing taxes ; and whose agriculturists generally own the fee sim- ple of the lands they cultivate — cannot, unless by war, famine, or pestilence, suffer such general distress as we experience, with- out some enormous and radical error in its political economy. Our vital error, to sum the whole in a few words, is, wasting our wealth and resources to foster and promote the agriculture, arts, manufactures, trade and commerce of other nations, and neglecting to protect those of our own country. Decay, de- crepitude, and ruin, have uniformly attended such a system, in all past ages ; and, by the eternal laws of the moral world, can- not fail to produce the same effect to the end of time. We have added our experience to that of Spain and Portugal, to prove this theory, and the deplorable state to which nations are reduc- ed by a neglect to protect domestic industry. Many of our citizens ascribe the whole of our distress to the misconduct of the banks, which, they assert, first by extravagant emissions, and then by pressing on their debtors, have produced the present stagnation. We do not pretend to defend the banks. There are, in various parts of the country, three or four times more than are necessa- ry. Many of them have been very ill-managed, and have done much mischief. But when the great mass of distress existing in this country, is charged to the account of those institutions, the effect is mistaken for the cause. The support and stay of banks is specie ; and, being drained of this in immense quantities, to pay for foreign luxuries, they must, in their own defence, curtail their business, press on their debtors, and produce stagnation and distress. As well may we expect a human being to retain 232 CIRCULAR LETTER. his elasticity and energy, when from a wide orifice In one of his arteries, his life's blood is gushing out, as that banks can accom- modate the public, and by loans promote trade and commerce^ when they are drained of what may be styled their life's blood, and themselves brought to the verge of ruin The first step requisite towards a cure, in every case of mala- dy, physical or political, is to ascertam the nature and extent of the evil. The best mode to accomplish this object, in the pre- sent instance, is to appoint suitable committees to investigate the real state of the agriculture, manufactures, trade and commerce of the united states; how far they have advanced, maintained their ground, or declined j and if they have declined, to what cause it is owing. We therefore earnestly request you will, as early as may be, convene the citizens of your district, in order to appoint com- mittees for the above purpose, and to take their sense on the all- important question, whether we are to continue to lavish the treasures of our country on the manufacturers of Europe and Hindostan, while our own are consigned to ruin, and while the nation is, in consequence, impoverished, to procure articles abroad which we either do not want, or can produce ourselves. When this nation was in its colonial state, it complained most grievously of the oppression it suffered by the restrictions and prohibitions of the mother country, whereby its industry was re- strained and paralized, and its resources drained away. This was one of the most serious evils of its dependent situation. And it cannot be denied, that our present system, which equal- ly paralizes our industry and impoverishes our country, entails on us some of the worst consequences of the colonial state. The party distinctions that have heretofore so long divided our citizens, distracted our country, and, during the war, endan- gered its safety, have, in a great degree, subsided. We hope and trust, that henceforward they will assume a new form ; and that the question will be between those who, by destroying the productive industry of the country, are disposed virtually to co- lonize us ; and those who are for securing us a real independence. Unless our citizens be wanting to themselves, the friends of the colonial policy will in future, look in vain, on the day of elec- tion, for the support of an enlightened body of electors, and have leave to retire to the shades of private life. The syren song of " buying cheap goods abroad^'' has beea re-echoed in our ears with unceasing industry. We have fatal- ly been seduced by it, and led to the brink of destruction. What are the facts of the case ? A few short years have elapsed, since the productions of our soil and our manufactures commanded high prices. Cotton was thirty cents per pound ; wheat, two dollars and a half and three eiRCULAR LETTER. 28S dollars per bushel ; flour eleven and twelve dollars per barrel ; prime beef, eighteen cents per pound ; oak wood, seven dollars per cora ; merino wool three dollars per pound ; superfine cloth, ten or twelve dollars per yard ; and all other articles in the same proportion. What was the result ? Was the nation miserable or wretched, in consequence of paying these high prices ? No : far from it. We enjoyed as high a degree of prosperity as any nation ever did. To this strong and important fact, we hope you will pay due attention. All our labouring people were ful- ly employed. Our capitalists derived liberal profits from their wealth. Splendid manufacturing establishments arose, as it were by magic. The farmers and planters had high prices and ready markets for their produce. And, for a large portion of the time, commerce likewise throve, under those high prices. In a word, the face of the country exhibited an appearance cheering to our friends, and appalling to our enemies. But now we have fallen on those ' cheap times^'' w^hich have been so much wished for, and so highly extolled, by those poli- tical economists, whose councils have unfortunately prevailed over the wise and profound system of Alexander Hamilton and Thomas Jefferson.* And what is the result ? Has '' cheap- ness" shed those blessings on the nation, that we were led to ex- pect ? Can those who have enabled us to buy cheap, congratu- late themselves on the result of their plausible but destructive system of political economy ? Can we find safety or happiness, in taking them for guides in our future career ? No : it is fatal- ly the reverse. Our country exhibits a scene which excites our friends to mourning, and affords matter of exultation and triumph to our enemies. Wheat is one dollar and ten cents per bushel ; flour is six dollars per barrel ; cotton eighteen cents, and beef six to ten cents per pound ; oak wood, five dollars per cord ; merino wool, one dollar per pound ; superfine cloth, six or eight dollars per yard. And has this state of things produced the millennium with which its patrons flattered us ? Is the house owner, whose rents have fallen from two thousand dollars per annum to twelve hundred or a thousand, compensated by the saving of four dol- lars per barrel in eight or ten barrels of flour, and three dollars per yard in 2 or 3 suits of clothes, in the year ? Where, we ask, and earnestly request a reply from those citizens who, with Adam Smith for their guide, advocate the purchase of goods abroad where they can be had cheap, is the advantage to the work- man whose labour was worth five, six, or eight dollars per week, * " We must place the manufacturer beside the agTiculturist." Jefferson. This single line embraces an abstract of political economy, of incalculable iiTj» portance. 30 234 CIRCULAR LETTER. and who is totally bereft of employment, that the price of a barrel of flour is only six dollars, whereas he does not now earn six doilurs per month, and has not wherewith to purchase, if it were reduced to three ? Is it any consolation to the farmer, who expended a fortune on merino sheep, which the prostration of our woollen manufactures has condemned to the butcher's knife, and who sold his wool for three dollars per pound, of which the price is novr one dollar, that he can buy broad cloth at six or eight dollars per yard, instead of ten or twelve ? The loss on the fleeces of a dozen sheep, outweighs all the advantages he derives from the destruction of the capital, the prospects, and the happiness of his manufacturing fellow-citizens. What are the mighty benefits derived by the cotton planter, who saves from fifty to a hundred dollars per annmn in his clothing and that of his slaves, when, in consequence of the want of a domestic market, he loses ten cents per pound, or a thousand dollars in the year, on his crop of cotton of ten thousand pounds ? He saves by cents, and loses by dollars. While all the energies of the hviman mind are called into ac- tivity, on the question who shall be president, governor, mem- ber of congress, representative in the state legislature, sheriff, and even county commissioner, so comparatively uninteresting to the major part of the community, it is lamentable to see what torpor and indiff'erence prevail on this vital topic, which decides the important question, whether Washington, Greene, Montgo- mery, Warren, Mercer, Laurens, Clinton, Wayne, Stark, Pulas- ki, and Fayette, fought and bled — whether Franklin, Adams, Hancock, Jefferson, Otis, Randolph, Jay, Lee, Livingston, and Henry, pleaded — in vain. We have no hesitation in saying, this is the real state of the question : for the man whose capital is destroyed, whose talents are rendered useless, whose means of supporting himself are torn up by the roots by a false policy, looks in vain for the boasted blessings of the revolution. He compares his situation with that of the manufacturers of En- gland, France, Austria, and Russia, and envies the fostering care bestowed on them by their monarchs, which forms such a contrast with the destruction to which he is consigned by his fellow-citizens. So far as property is concerned, there is little difference between the citizen of the united states, who is ruin- ed for want of protection, as so many of our manufacturers have been, and the cringing slave, whom the despotism of the dey of Algiers, or the emperor of Morocco plunders of his substance. *' Disguise it as we will," it is the same destruction, that robs existence of its charms, although differently administered : for, without property to render life comfortable, life itself is of little value. In one respect, the case of the American citizen appears worse than that of the Algerine slave. The former had every CIRCULAR LETTER. 235 right to calculate on an exemption from the ruin that has blasted his prospects of happiness ; whereas, the latter inherited from his ancestors the cruel destiny of holding not merely his property, but his life itself, on the precarious tenure of the mercy of a bar- barous tyrant. On the subject of " taxing the many for the benefit of the few," prolix essays and pamphlets without number have been written, and frothy speeches delivered. This has been adduced as an unanswerable argument against extending any pi-otettion to ma- nufactures, further than Avhat is afforded by the duties laid for the purpose of raising a revenue. It is a fertile subject, and would require rnuch detail : but the limits of a letter are already transcended, and we must be brief. We will state a few cases, in which one part of the community is heavily taxed for the be- nefit of another, without murmur. The beneficial coasting trade has been secured to our merchants, by a total prohibition of fo- reign rivalship, under penalty of confiscation ; whereas there is no manufactured article whatever prohibited. The protection of commerce has probably cost the nation one hundred millions of dollars, for foreign embassies,* fleets, and a wasting war, which commerce aione has rendered necessary. Of all this im- mense sum, not one cent has been levied for the benefit of man- ufactures. Foreign spirits are subject to duties from eighty- six to one hundred and twenty per cent., and cheese to about se- venty per cent., for the protection of agriculture : while woollen and cotton goods pay only twenty-seven and a half per cent, (ex- cept the latter, when below twenty-five cents per yard) manufac- tures of brass, steel, tin, lead, glass, earthen-ware, pottery, sail- cloth, &c. pay only twenty-two ; and linens only sixteen and a half. We do not censure, on the contrary we approve, the protection these duties afford to agriculture. We only deplore the lamenta- ble difference between one hundred and twenty per cent on gin, to protect domestic peach brandy and whiskey, and twentj^-seven and a half per cent, on cottons and woollens ! Should you pursue the plan herein recommended, we respect- fully advise that you communicate the result of your enquiries, in the form of a memorial, to the members of your state legisia- * Some idea may be formed of tlie enormous expenses incurred for the pro- tection of commerce, from a statement of two facts : — The expenses of foreign intercourse, that is, for ambassadors, charges des aiiaires, consuls, agents, bearers of despatches, &c. &c. Jkc. for twenty four years, have been 10,872,494 dollars, or above 450,000 dollars per annum, (Seybei-t, 713 ;) and for the Barbary powers, in twenty years, 2,457,278 dollars, or above 120,000 dollars per annum. (Ibid.) Thus, in these two items, there is a positive dislmrsementf for the protection of com- merce, of above half a million of dollars annually : whereas, the government has never paid one dollar, as bounty or premium, to foster, protect, or promote the productive industrj^ employed in manufactures ; and has rarely imposed any du- , ties, beyond what were called for by the exigencies ©f the H'easiny. 236 CIRCULAR LETTER. ture, and to your members of congress. Should the former bod; bedmpressed with an idea of the correctness of the views wt have taken on this mighty subject, they will doubtless use their constitutional right to request your representatives, and instruct your senators, in congress, to exert their influence to have the tariff so far modified, that it shall be no longer possible to say, as, alas ! we can now say with perfect truth, that the manufacturers in the most arbitrary governments in Europe are fostered, cher- ished, and protected from foreign competition ; while, under this free government, ours are exposed, by their fellow-citizens in congress, to the competition of the whole world ! The ap- pointment of a committee, to correspond with the different towns in your state, would be a highly beneficial measure ; and is most earnestly recommended to your attention. It is to be presumed, that our representatives in congress are dis- posed to do their duty, and only require to be well informed on the subject, to induce them to pursue a correct course. We therefore respectfully suggest to you to take into serious con- sideiation the propriety of an application to congress, from the manufacturers of the united states, to be heard by counsel at their bar. The most salutary consequences have resulted from this procedure in Great Britain ; and it could not fail to produce consequences equally salutary here ; as it must elicit such a mass of information as would destroy the deleterious prejudices, whose operation our country has so much reason to deplore. There is one point to which we invite your serious attention, as of paramount importance. Notwithstanding the ruin that has overtaken so large a portion of our manufactures and manufac- turers, there are some citizens, with immense capitals, engaged in the cotton branch particularly, who deprecate the idea of any further protection, and have impressed on the minds of the con- stituted authorities, that the present duties are amply adequate. This phenomenon in trade — a renunciation of further aid from government, of which the world has never hitherto had a paral- lel case — must arise from such a pure spirit of patriotism, as would reflect honour on Greece and Rome, in the most brilliant period of their history, or from some motive of a very opposite character. It has been successfully used by the friends of the existing system, as an irresistible argument against the host of petitioners, who have besought additional protection. As it has been thus employed, it becomes a duty to investigate it tho- roughly, and ascertain, as far as may be practicable, the source from whence it springs. It is asserted, that the proprietors of those establishments prefer, as the least of two evils, encountering the desultory competition of foreigners, whose goods are often of iiiferior quality, to the steady and unceasing rivalship of si vast number of their fellow-citizens, who, in the event of a full protection to manufactures, would enter the lists, and divide the MEMORIAL. ^37 market with them. On this delicate point we cannot pretend to d^-cide : we merely present it to view lor public consideiation. We annex a few c^ueries, which we request you will circulate, for the purpose of collecting the necessery information for form- ing your memorial. To Farmers and Planters, If manufacturing establishments have been erected in your Deighbourhood, what consequences have they had upon agricul- ture ? What number of merino sheep were imported into your dis- trict — their first cost — the number killed — the causes of their being killed — their present value — the price of wool, before, du- ring, and since the war ? To MaJwfacturers. How many workmen did you employ in 1816? How many do you employ at present ? What was and is the average of the wages at each period ? What number of manufacturing establishments were in oper- ation, in your neighbourhood in 1816? How many of them are wholly suspended ? What have they cost ? What is the loss sustained on them ? What is the cause of the decay of manufactures in your vici- aity? WILLIAM DUANE,-j committee ot Cor- MATHEW CAREY, respondence, ap, SETH CRAIGE, [ PO'^ted by a town HENRY HORN, ^^fXl c'traS JOSIAH RANDALL, County of PhUkd.- WILLIAM YOUNG.J Oct. 4. I8i9. Philadelphia^ Oct. 13, 1819. MEMORIAL. To the senate and house of representatives of the united states : the memorial oj the Pennsylvania society for the encouragement of American manufactures^ Respectfully sheweth — That your memorialists have read with the deepest regret, two remonstrances presented to your honourable houses, from agricultural societies in the state of Virginia, deprecating your 2'3& MBMORIAL. interposition in favour of the manufacturing part of the com^ munity. These documents, containing sundry allegations injurious to your memorialists, and resting, as shall be made to appear, on an unsound basis, require a detailed investigation, to which we res- pectfully request your attention. We must premise, that we should have hoped that the ruin oi so many of the manufacturers — the depressed state of those who have hitherto escaped the situation in which their brethren have been involved — and the distresses of that class whose sole de- pendence is on their labour — would have prevented this unkind interference, calculated to continue their sufferings ; that the gen- erous sympathy which their situation ought to have excited in the breasts of their fellow-citizens — embarked in one common cause, would have averted this hostility, even had all the alle- gations of the remonstrances been irrefragable ; whereas, we hope to prove, that such as are of any importance, are easily sus- ceptible of refutation. The disappointment fills us with sur- prize and regret — and Ts ill calculated to foster those kind regards and attachments which ought to subsist among members of the same community, and which we have always cherished towards our agricultural fellow citizens. But our appeal and that of our brethren has not been made to the generosity or compassion of our fellow citizens. We ap- peal to their honour — to their justice. We ask, at length, after a lapse of thirty years, in which the government has existed, for a share of that protection so bountifully bestowed upon com- merce, and which agriculture, as will appear, has abundantly enjoyed. The allegations of the agricultural societies are principally confined to three points — 1 . The extortions said to have been committed by manufac- turers during the war. 2. The danger and oppression of monopolies, exclusive privi- leges, &c. 3. The injustice of aifording protection to manufactures, when agriculture disclaims all protection. There are sundry minor points, which we shall pass over, in •rder to avoid prolixity. The charge of extortion is couched in these words : — " We submit respectfully to your wisdom, the impolicy of " subjecting so large a portion of your fellow citizens to suck " unreasonable cupidity — of laying them at the mercy of an as- " sociation, who, competition being removed, ruill no longer " consider the intrinsic value of an article^ or what price would " aj^ord a fair profit to the manufacturer^ hut how much the MEMORIAL. 2o9 ^-^ necessities of the consumer would enable them to extort. Of " this spirit we had a sufjiLient specimen.^ during our late con- ♦' text 7vith Great Britain.'''' This uncharitable accusation we hope to prove wholly desti- tute of foundation. The article on which it chiefly rests is su- perfine broadcloth, which was raised from eight or nine dollars, the price before the war, to twelve, thirteen, and fourteen, dur- ing the war. The reasoning applicable to this case, applies with equal force to all the others.. All doubt of the injustice of this allegation will be laid at rest forever by the simple fact, that merino wool, the raw material oithat cloth, which, before and shortly after the commencement of the war, was sold at seventy-five cents per lb. was raised during the war to three dollars, an advance of three hun- dred per cent. ; so that there was less profit per cent, on the ca- pital employed by the manufacturer at the high prices of the cloth, so much the subject of complaint, than at the former moderate prices. We trust that this strong fact, which can be judicially proved at the bar of your houses, will prevent any man of honour or candour, as he values his reputation, from ever again repeating so unfounded an accusation. But if we have never retorted this charge against our accus- ers — if we have forborne recrimination — it has not been for want of materials, but from an unwillingness to cherish an unkind and unfriendly spirit towards our fellow citizens. And now, not- withstanding the repeated and wanton provocations we have re- ceived, we resort to the measure with pain. We should gladly have buried in oblivion all our causes of complaint, and cherished a kind and fraternal spirit, in the hope of exciting a suitable re- ciprocation. But the style and manner of the accusations against us, their unceasing repetition, the hostile disposition they display, and the ruinous consequences they are calculated to produce on the general welfare of the nation, render it a duty to ourselves, to our country, and to the cause of truth, to prove that our accusers are far from invulnerable in this point, and are under high obligations to us for past forbearance. In the year 1788, flour was four dollars per barrel in our sea ports ; which was regarded as a fair and liberal price. In the next year the demand for the supply of France took place, and this article was raised to five and six dollars ; from year to year afterwards, it rose to ten, twelve, and fourteen dollars ; and prob- ably it averaged during the whole of the French revolution, above ten. We submit to a candid world, whether this fact does not more completely establish the charge of " extortion,''^ than the rise of broad cloth from eight or nine to fourteen dollars, (or even to thirty, had it taken place,) when the raw. material rose 240 MtMOAiAL. from seventy-five cents to three dollars per pound ? And whe- ther the rise on the wool itself is not incomparably more ' extor- tionate^^ than that on the broad cloth ?. The latter was not only justifiable, but imperioasly necessary, by the rise which we have stated on the raw material. But, for the rise on wool or flour, no such reason existed. It did not proceed from any advance " in the intrinsic value of the article^"* to borrow the words of the Petersburg remonstrance, " nor from a consideration of xvhat price would afford a fair profit to the^'' farmers : " but how much the necessities of the consumers enabled them to extort.^'' At the same period, 1788 butter was ten cents per lb. — beef and pork, five cents ; tobacco, three or four ; and all other agri- cultural articles in the same proportion. They have since been raised from one to two hundred per cent, above those prices. — Yet we have never alleged against the farmers or planters the odious charge oi '■'• extortion ^^^ at which they would have revolted. Have they, we ask, a right to raise their prices one or two hun- dred per cent, at pleasure, when the demand warrants it, without " extortion^'' — and yet to wound the feelings, and injure the cha- racters of their fellow citizens, by the odious imputation of '* eX' tortion^"* when the advance of the raw material by themselves renders a rise of manufactures necessary ? If this be a charter- ed privilege, we wish to know whence it is derived, and by what tenure it is held. Seriously, we presume this to be the strongest illustration of the parable of the beam and the mote that the va- riegated history of mankind presents. Flour is now four dollars and seventy-five cents per barrel on the sea board. Should war or famine take place in Europe, the price would be immediately raised, one, two, three, four, or five dollars per barrel. And in proportion to the intensity of the distress would be the tax levied on the consumers in this country. There are about three millions of white people in the united states not engaged in agriculture, who consume on an average two barrels of flour per annum. A rise of three dol- lars, which might take place immediately, in case of a very ex- traordinary demand, would amount on this article to a gain of 18,000,000 of dollars, levied by the farmers on the rest of the community during the ensuing year, exclusive of probably an equal amount on all other agricultural productions, liable to a proportionate advance of price. And this is not a mere hypothe- sis of what may occur. It is the history of the last thirty years, and of the immense prices, again to borrow the vituperant lan- j guage of the remonstrance, which " the necessities of the consu- j mers have enabled'''' the farmers '' to extort^ ! Nothing but the endless, the irritating misrepresentations we have experienced, Would induce us to retort this strong language upon our accusers. MKMGRIAL. '241 The United Agricultural Societies of Virginia prefer acla'm to a high degree of superiority over the other classes of the com- nity, which calls for observation. They state that — " In every nation with whose internal affairs we are famili- *' arly acquainted, the landed interest has been proverbial for *' their liheralitif in comparison with any other class. ^^ It is unfortunate that this assumption of liberality appears in an instrument, the direct object of which is to bar the door to the relief of their fellow citizens, and to consign them and their families to that wretchedness and ruin which has befallen so many of their brethren ! Before this claim to '"• prozierbial liber- ality^^ can be admitted, proofs must be adduced different from the document in which it is asserted. The contrast between this strong assumption and the object of the remonstrance, though very striking, is not uncommon. Every day's experience so strongly proves the extreme discrepancy between profession and practice, that no illustration can be necessary. The Societies distinctly hold forth to the world, that agricul- ture neither has been, nor is, secured by "• protecting- duties.^'' — They state — " We solicit not the fostering care or patronage of the leg- " islature to alleviate by bounties, tnonopolies^ or protecting *' duties.^ calamities in their nature as inevitable, as they are *' incurable by legislative interposition." The Fredericsburg Society also states — *' We ask no tax upon manufacturers for our benefit. Neither ** do we ask any thing of government to enable us to cultivate *' the soil as we could wish." The high character of the members of those societies forbids the supposition, that this was an intentional misstatement. We are therefore inexpressibly astonished at the utter unacquain- tance with the real state of the case, betrayed in these quotations, which evinces how superficially these gentlemen studied the subject on which they undertook to interpose to prevent the success of our applications for relief. The view they present is so far from fact, that it is the re- verse of fact. The average of duties on such agricultural pro- ductions as are usually imported into this country, has been, from the commencement of the government, far higher than those on manufactures. We will state the case at two periods, remote from each oth- er, viz. 1789 and 1820. The intermediate space exhibits the same features. In the former period, cheese was subject to a duty equal to fifty-seven per cent.; xxidXgo^ sixteen; snuff, ninety; manufactur- •31 242 aiEMOkiAr. ed tobacco, one hundred;* coals, fifteen ; hem|5 ahd cotton, twelve^ whereas seven-eighths of all the manufactures imported, includ- ing cottons, woollens, and iron, were subject to only five per cent. This, we presume, is full proof of the inequality of the system of legislation with which the government commenced, and of the care with which the agriculturists, who formed the great mass of the national legislature, guarded their own in- interests. Hemp at present is subject to a duty equivalent to twenty-six per cent.,- cotton, thirty^.; chetse., ninetif ; spirits, eighty ; snuff, seventy -jive ; manufactured tobacco, one hundred ; coals., thirty- tight and a half; sugar, thirty-seven and a half; and potatoes, fifteen ; averaging fifty-efght per cent. Few other articles, the product of the ^arth, are imported. But they are all, except three or four, subject to fifteen per cent. Of the manufactures imported in the year 1818, oiie twenty- fifth part paid a duty of seven and a half T^er cent.; one-third Jiftren ; one-sixth, tiventy ; two-fifth^ twenty -five ; and one- twenty-fifth part, thirty per cent.f On this striking contrast, which affords no proof of " the pro- verbial liberality" of the landed interest, we offer but a single comment. It adds one to the numerous melancholy instances with which history abounds, that where one particular interest predominates in a legislative body, the others rarely experience impartial justice. We will notice only one article, which places in a strong point of light the different degrees of protection expe- rienced by agriculture and manufactures. Cotton, a raw mate- rial, is subject to a duty of thirty per cent.:}: — and the freight is about the same. The cotton planter has therefore a protection of sixty per cent.; whereas fine muslins and cambrics pay but twenty-sev- * The prohibitory duties on snuff and manufactured tobacco, were imposed in 1789, with a view to secure the exchisive market of the united states for our to- bacco planters. This object was expressly avowed in Congress, and they com- pletely answered this purpose. To suppose that a duty of one hund'-ed per cent. was imposed on manufactured tobacco, and ninety per eent. on snuff, for the ben- efit of the manufacturers of these articles, while manufactures of cotton, wool, iron, lead, brass and tin were dutied at five per cent, without any regard to the manufacturers of those articles, is really too gross for the most Boeotian capacity. •j- This is an error. Cotton, in the East Indies, I las been sold for years at six cents per lb. and even lower. It therefore appeai-s the cotton planters were secured by a, protecting duty of fifty per cent. * At ri . . - . . . . ig2,387,693 15 ...... . 19,455,525 20 9,524,531 25 ...... . •24,804,188 30 . . . . . . . 2,633,637 !g58,805,574 jyiEMORIAL. 24l3 •n and a half per cent, duty — and the freight is not more than one or two per cent. Thus the planter, who disclaims the idea of " protection," has an advantage over his manufacturing fel low-citizens, oif above thirty per cent., independent of the im- mense difference between the protection necessary for articles produced b}- agriculture and those by machinery. It may be as- sumed without danger of contradiction, that cotton would be bet- ter protected by a duty of twenty per cent., than cambrics or mus- lins by sixty or seventy. We do not find that the tariff of any other country whatever presents such an extraordinary fea- ture. Great emphasis is laid by the agricultural societies on the danger of " monopolies granted to one class or order, at the ex- pense of another." This forms a fertile theme, on which they descant very freely —1 hey remonstrate against " Unequal and partial taxes — awarding exclusive privileges *' — or sustaining the manufacturers in the enjoyment of op- *'■ preixive monopehes^ which are ultimately to grind us and our " children after us to dust and ashesy *' In this way alone, can the benefits of good government be ** equalized among the various orders and classes of society, *' the prosperity and happiness of which depend not upon im- ^^ nijtriitJts^ privilege^., and monopolies^ granted to one class or " order at the expense of another," &c. We are constrained to state, that the want of due consideration which prevails throughout the remonstrances, is here very con- spicuous. Monopoly, according to Johnson, means " the exclu- sive privilege of selling any thing." And a monopolist, accor- ding to the same authority, is *■' one who by engi-ossing or by patent, obtains the sole power or privilege of vending any com- modity." There is not, therefore, such a thing or person, in this country, as a monopoly or monopolist : nor, while our pre- sent constitution exists, can there be a monopoly. For suppose manufactures of wool, cotton, iron, and leather were altogether prohibited, those branches would be open to the admission, and consequently to the competition, of any part of the community —to farmers, as well as others, and even to the capitalists from any and ev^ery part of Europe, if they judged proper to embark in them. Where then is the monopoly ? While the agricultural societies were thus denouncing what they thought proper to brand with the odious term," monopolii^^ they did not reflect that they were themselves far more liable to the accusation, than those against whom they preferred it. The great mass of the manufactured articles purchased by the far- mers and planters of the southern states, and probably one-half 344 MEMORIAL. of what are purchased by those in the others, are imported.—^ Whereas, the manuiactarers of the united states have not consu- med of foreign articles of food and drink, since the organization oi the general government, two per cent. Thus while tiiere has been an incessant clamour against " the inonopolu'''' of the rnanutacturers, whose mar.ket is open to, and engrossed by, rivals irom half the nations of Europe, it appears that the farmers and planters have what they term "• a mon.'jpolijp'* w ich, however, is only an exclusive supply of the home market. ^ :. a^ be doubted whether a more extraordinary case is on record. We si-,all conclude our observations on those memorials with one iurtner extract — " To guard," the Fredericsburg Society observes, " against " the possibility of misapprehension, we take this occasion to " say, that vje are incapable oj feeling any thing like enmity *' against munufacturers or any other useful description of citi'^ '^ zens : but heartily wish them all the success to which their "skill and industry may entitle them, in whatever way ap- " plied." This declaration would have been more acceptable, and claim- ed our gratitude, had it not accompanied an attempt on the part of those who make it, to do us ail the injury in their power to inflict — to prevent a compliance with our just claims — and to perpetuate our present intolerable sufferings. Your memorialists regret to find that the same adverse spirit towards them that prevails among these small bodies ot their ag- ricultural fellow-citizens, has been excited among a portion of the mercantile class. They request your favourable hearing of a few remarks on the memorial of the merchants of Salem on this sub- ject. It "• Calls the attention of congress, to measures that have "been recently proposed and apparently approved, for the " purpose oi prohibiting the importation of foreign woollen and " cotton goods."'' Your memorialists are constrained to state that this view is very uncandid. 1 hey never did contemplate " a prohibition of foreign cotton and woollen goods" generally. There is not a sane man in the country, who, if he had the power, would enact a total exclusion. A large portion of those goods is not, and, for a long time to come, cannot be, manufactured in this country, and therefore must be imported. Your memorialists deprecate and solemnly protest against the influence of a system which has been heretofore too successfully pursued, that is, defeating their MEMORIAL. 245 fair and legitimate objects, by ascribing to them views, which they wholly disclaim. Of this unfair system, their dearest in- terests have been frequently the victims. Were it necessary, they could produce numerous instances, of early and recent date. " If we are not willing to receive foreign manufactures, we " cannot reasonably suj^pose that foreign nations will receive " our raw materials." " We cannot force them to become buyers, when they are " not i-elltri) — or to consume our cottons, when they cannot " pay the price in their own iabrics." " We cannot expect them to carry on a ruinous trade, when *' the ptopt is all on our i>ide.'''* These paragraphs are liable to the exceptions urged against the preceding one. They assume the extraordinary idea, which insanity alone could harbour, that importation is expected to be wholly prohibited. All that is necessary for the restoration of the countiy, and for the prosperity of the manufacturers, is such a modification of the tariff, as will reduce our imports within the limits of our exports — and prevent our manufactures and manu- facturers from being overwhelmed by the inordinate inundation of foreign fabrics. " While the manufacturers are left free to engage in their *'own peculiar pursuits, enjoying, in common with others, a *' reasonable protection from the government, the memorialists *' trust it is no undue claim on their part to plead for the free- " dom of commerce also, as the natural ally of agriculture and *' naval greatness." There is an assumption here, of '■'■ freedom for the manufactu- rers^^'' which is not warranted by the fact. When their busi- ness is annihilated, and themselves ruined by the immoderate introduction oi foreign merchandize, as has occurred to too many of them, can it be said that they '' are free to engage in their own jjeculiar pursuits .^" We will render this plain by applying it to the case of the merchants. The vessels empioy- eu in the coasting trade for thirty years, have averaged about 400,000 tons annually. Were foreign vessels allowed to engage in that trade, to the amount of 300,000 tons, would it not be a mockery, were the merchants informed, while their ships were rotting at the wharves, and themselves reduced to bankruptcy, that '■"• they werejree to engage in their oxvn peculiar pursuits ?" And is it not a perfectly analogous case, when the manufactu- rers are ruined, and their machinery rotting and rusting, through the extravagant influx of foreign articles, to be gravely told, that they are " free to engage in their own peculiar pursuits V " It is a sound political maxim, that the more free trade is^ 246 MEMORIAL. " and the more widely it circulates, the more sure will be its *' prosperity. Every restriction which is not indispen.sahle '■''Jbr the purposes oj revenue, is a shoal, which will impede its *' progress^ a?id not unfreqitently jeopard its security.'''' The doctrine here advanced, on the broad and unqualified scale on which it is predicated, is unsound, and contrary to the practice of the most prosperous states, and to the principles of the wisest statesmen. Can the prosperity of trade be promoted by the free introduction of foreign luxuries which destroy the industry of our own citizens ? Has it been promoted by the im- moderate quantities of goods imported into this country, where- by its circulating medium has been exhausted, and an enormous debt contracted for articles which our own citizens could have supplied ? To test this plausible maxim, which has done infinite injury to this country, we will, as in the former case, apply it to th': merchants themselves. The use of foreign vessels is almost virtuady prohibited in this country, by " restrictions not indiS' pensable for the purposes of revenue^ Suppose these " restric- tions" were removed, and that foreign vessels were entitled to the same privileges as our own, what would be the consequence? They would be employed here in large numbers, to the ruin of the merchants and ship-builders. Would they not, in that case, as zealously contend against the maxim as they now uphold it ? And can there be any just reason why the manufacturer, entitled to equal rights with the merchant, should be ruined by foreign rivals, and the merchant secured against this rivalship ? In the scales of impartial justice, the rights of each ought to have equal weight. Although the merchants of Salem invoice congress in such em- phatical terms, to support that "freedom of trade" which im- poverishes the nation, and, by exposing their manufacturing fel- low citizens to the competition of rivals in every quarter of the world, has ruined so large a portion of them, there is scarcely a session in which the mercantile interest does not memorialize congress for protection against foreign competition. On this eonduct, so partial to themselves, and so excessively unkind to us, Ave dare not trust ourselves to comment. It would extend this memorial to an unreasonable length, if we particularized one-half of the '■'•restrictions'"' of foreign com- merce in favour of our merchants. We shall confine ourselves to a few prominent cases, to prove that this maxim, now so zeal- ously urged, has had no weight when the interests of that class we; eat stake ; and that the "restrictions" on foreign commerce which they succeeded in obtaining, were not only " not indis- pensable for the purposes of revenue," but in many cases perni- cious to it. W^hen the competition of foreign merchants in the coasting MEMORIAL. 247 tf ade was wisely destroyed in the very outset of the government bv ;i heavy prohibitory tonnage duty, and afterwards by positive prohibition, was this measure '' indispensable for the purposes of revt'iiiie ?"' Was it not, according to the Salem memorial, "• a shoal to impede the progress of trade ?" When, in the first session of congress, foreign merchants were excluded from the China trade, by extra duties on teas im- ported in foreign vessels, averaging one hundred and se\ en per cent., were they '■'• necessary f.r the purposes of revenue P"* Did thty not rather impair the revenue ? When, more recently, an extra tonnage duty of two dollars per ton was imposed on foreign vessels arriving from ports which American vessels were not allowed to enter, was this " necessary for the purposes oj revenue?'''' Where then was the alarm about " shoah to impede the progress of trade?'''' Was the act prohibiting the introduction of plaster of Paris, in foreign vessels, " necessary far the purposes of revenue ?'''' or was it net rather " a shoal to impede the progress of trade .?" Was thei^ct passed in a late session of congress, of which the object was to coerce the British nation to abandon the chief fea- ture of their navigation act, which they prize so highly. '^ neces- sary Jor the purposes oJ revenue?''^ Has it not, on the contrary, injuriousl}- affected revenue and agi-iculture ? And in fine, we ask, and hope for a fair and explicit answer, whether tl(e strong " restrictions^'' now contemplated against both Great Britain and France, are '-'•necessary for the purposes of revenue?'''' Whether they are not, like the former, '-'■ shoals to jeopard'''' agriculture and" revenue?'''' The acts above alluded to, and a great variety of others which abound in our statute book, do not require much comment. — They speak a language not to be misunderstood. It appears, and cannot fail to astonish your honourable houses, that while the merchants have, from the commencement of the government, ap- plied for, and been favoured with, '•'- restrictions," not only '' not necessary Jor the purposes of revenue'''' h\xt'\x\ many cases pernici- ous to it, a portion ol them now use all their energies to defeat the reasonable objects of your memorialists, and consign them to destruction, on the ground that the " restrictions" contemplated are '•'■not necessary for the pU' poses of revenue?'' " One sacrifice is to be dt-manded after another — one prohi- " bition heaped upon another, until all the sources of foreign " commerce are dried up ; and d<^)mestic manufactures, sus- "tained by enormous bounties^ absorb the whole monied capi- "tal of the nation." It ill becomes the advocates of a commerce, " sustained by encni.cus bounties^"in the shape of tributes to Barbary powers; foreign intercourse ; a most oppressive naval expenditure. 248 MEMORIAL. amounting for the current year, to 3,500,000 dollars ; ia tona- merce which has entailed or the nation a -war delt of nearly 80,000,000 of dollars ; to hold this language, respecting manu- factures on which the government has never expended a single cent in thirty years. And what, we ask, has called forth this em- phatical denunciation of manufactures? Merely a request, on the part of the manufacturers, of a duty of forty or fifty per cent.* on cottons, woollens, iron, and some other articles, in order to enable our citizens to compete with the half-starved and half- clothed workmen of foreign nations. This is the tremendous danger which is '' to dnj up all the sources of foreign commerce^ and " absorb all the monied capital of the nation .'" We cannot forbear to state, that it is no proof of the intrinsic goodness of a cause, when its advocates are reduced to the neces- sity of drawing high-coloured and extravagant portraits of dan- gers, which have no existence but in their own heated imagina- tions. " It is not a little remarkable, that these attempts are not *' only repugnant to those maxims of free trade, which the uni- *' ted states have hitherto so forcibly and perseveringly con- " tended for, as the sure foundation of national prosperity, but " they are pressed upon us at a moment, when the statesmen " of the old world^ in admiration of the success of our policy^ " are relaxing the rigour of their onm systems / and yielding ** themselves to the rational doctrine, that national wealth is *' best promoted by a free interchange of commodities^ upon ** principles^ of perfect reciprocity P It is painful to us to state, that this entire paragraph rests on untenable ground. We look in vain for the evidences oi'-'-the national prosperity!^'* on which the merchants predicate their reasonings. Where are those evidences to be found ? Is it in the decay and destruction of so large a portion of the national industry ? If this be a sign of " national prosperity^'' then is this nation prosperous to a degree unexampled in its annals, ex- cept in the interval between the close of the revolutionary war and the establishment of the present form of government. Is it in the decline of commerce and navigation ? Is it in the bank- ruptcy of so large a portion of the merchants, traders, and manufacturers of the country ? Is it in the violent measure which the legislatures of four or five of the states have adopted for arresting the course of justice, and?suspending the collection of debts ? Is it in the augmentation of poor rates — the increase of mendicants and soup houses ? Is it in the failure of revenue to the enormous amount of five millions of dollars for the pre- sent year ? Is it in the exclusion of one of our chief staples from * This was a great error. The duty contemplated on woollens and fine cottons was only thirty-three per cent. MEMORIAL. 249 the British markets, and the very great depreciation of the price of the rest ? Is it, in a word, in that state of affairs, justly cha- racterised in a recent report, by the secretary of state, in these strong terms : — " But few exapiples have occurred, of distress so general, " and so severe, as that which has been exhibited in the united " states.'' These, alas! are no symptoms of" national prosperHif' — and of '■'•the succefis of our policy^'' which, we are told, and with a grave and sober air, as if the assertion were irrefragable, excites '•'•the admiration of the statesmen of the old-world !! !'''' We look around in vain, we repeat, for this " national pros- ferity^'' which sounds so captivatingly. And we look equally in vain for " the admiration of the statesmen of the old tuorld^'' of '•'•the success of our policy^''' which is brought forward to tickle our national vanity. It would be in vain to seek for the " success of a policy," which, after twenty years of a most extensive com- merce, in which we received exorbitant prices for all our staples, has, in five years of profound peace, with abundant harvests, and wholly free from any natural calamity, reduced an intelligent, industrious, active population, possessed of almost every possi- ble advantage of soil and climate, with water power unequalled in the world, from a towering state of prosperity, to its present lamentable situation — a situation, which, notwithstanding " the admiration oj the statesmen of the old world^'''' empha.tica\\y warns us to change a policy, which built our prosperity not on the solid basis of national industry, but on the wretched foundation of foreign wars and famines, and which has rendered us dependent on foreign nations even for the chief part of the clothes we wear, although possessed of the most valuable raw material in the world, to an extent commensurate with the demand of nearly half the globe. But if we look in vain for this " national prosperity^''^ for " the success of our policy,'''' and for '■^ the admiration of the states?nen oftheoldworld^'"-we look equally in vain for ^^ the relaxation of the rigour oJ their systems'"' When this memorial was draft- ed, early in January last, and likewise when it was presented to congress, on the thirty-first of that month, there was not before the American nation a trace of such relaxation in any part of Eu- rope whatever. The assumption, therefore, on which so much of the argument of the memorial is predicated, was unvv arranted by fact. The countries with which the chief part of our intercourse is carried on, are Great Britain and France. In the three last years, of our domestic exports, amounting to I92,000,000of dol- lars, there were 141,000 000 exported to these two countries; whereas, to Russia, Sweden, Denmark, Norwav, Prussia, the 32 250 MEMORIAL. 1 Hanse towns, and all the ports of Germany, we only exported 11,000,000 of dollars. Of course, we are little interested in the commercial arrangements of those nations. The signers of the Salem memorial are called upon to produce any symptom in Great Britain or France, of this very extraordi- nary " admiration^'' or its effects. Our policy is truly a subject of "• admiration'''' for the desolation it has produced, as hurricanes and tornadoes are — but not of imitation to any wise nation. No symptoms of such imitation can be found. On the contrary, the cords are every day drawn tighter. So far as respects France, the Edinburgh Review, for July, 1819, informs us that — " The anti-commercial system of the ex-emperor, instead of " being modified or repealed, has, in fact, been adopted in all " its extent, by his legitimate successors ; and in their hands " has become doubly ejffic'ient.'''' No alteration has taken place since that period. Weiire there- fore warranted to state that the " admiration*'' and imitation of " the success oj our policy'''' which form so capital an item in the Salem memorial, cannot be substantiated in France. And the rigorous acts recently passed, and now contemplated by this gov- ernment, to counteract the British restrictive commercial policy, prove that that nation in like manner does not fall within the des- cription of the Salem memorial, as excited to " admiration''' or imitation of " our policy^'' by its wonderful " success J'"' When the Salem merchants laid down the maxim that *' na- tional wealth is best promoted by Si free interchange of commodi- ties^ upon principles of perfect reciprocrity ^'' did they mean to con- vey the idea, that the united states enjoy such a " free inter' change .^" It cannot be. There is no nation in the world which carries on commerce more completely destitute of " perfect re- ciprocity.'''' Our ports are open to the manufactures of all the world. — Whereas most of the ports of Europe, and all those of the co- lonies of that quarter of the globe, are shut against ours. This is a practical commentary on the ^'^ perfect reciprocity'''' which the Salem memorial insinuates we enjoy. Again : We exchange necessaries of life and raw materials in the most rude state, for manufactures elaborated with the last finish of human industry and skill : thus in every case, we exchange the labour of two or three, and in many that of ten, twenty, and thirty persons for one. Our cotton is returned to us in a man- ufactured state, at an average of five fold its original cost. It is this species of one-sided " perfect reciprocrity" which has, according to the secretary of the treasury, produced " a distress so general and severe^'' that '■'•few examples'''' of equal intensity " have occurred^'' and which has rendered the situation of the united states an object of regret and Sympathy forotir friends. MEMORIAL. 251 and of exultation for our enemies. It is full time for the guar- dians of the nation's rights to secure it something like " re- ciprocity'''' in its intercourse with the rest of the world. We cannot close this memorial, without expressing our as- tonishment and regret, that an idea could ever have prevailed, of the existence of hostility between the interests of agriculture and manufactures ; whereas, the great mass of the productions of the former derive their chief value from the market afforded bv the latter. The hides, the skins, the furs, the wool, a large portion of the cotton, the timber, the coals, the lead, the iron, the pitch, the tar, the turpentine, the tallow, the indigo, the flax, of the far- mer, find a ready sale among the manufacturers, who likewise consume of provisions one thousand per cent more than the amount exported to all the world in the most flourishing period of our history. Your memorialists are gratified to find that the opposition to their just requests has been confined to a small portion of the two great classes of their fellow citizens. In submitting the premises to the most serious attention of your honourable houses, your memorialists hope that ) ou will make such a modification of the tariff, as will secure to all per- sons interested in agriculture, manufactures, and commerce, a full and equal share of protection. Philadelphia, April 3(/, 1820. THE OR, AN ATTEMPT TO ESTABLISH AN IDENTITY OF INTEREST BETWEEir AGRICULTURE, MANUFACTURES, AND COMMERCE; AND TO PBOVE, THAT A t,ARGE PORTION OP THI MANrFACTtrHIirG IWDTTSTKT OP THIS KATION HAS BBEN SACRIFICED TO COMMERCE ; AND THAT COJOIERCE HAS SUFFERED BT THIS FOLICT NEARLY AS MUCH AS UANUFACTUBES. % BY M. CAREY, A^HOB OF THE FOUTICAI. OLITE BRANCH, TINDICIiB HIBEBNICX, ScC. &C. SECOND EDITION. " Butfeto examples have occurred of distress so general and so severe as that « tohich has been exhibited in the united states." — Report of the Secretary of the Treasurj'. "If any thing can prevent the consummation of pubUc niin, it can only be new " C07incils f a sincere chajige, from a sincere conviction of past errors." — Chatham. *' JWe/i will sooner live prosperously under the -worst government, than starve under « tfie best." — Postlethwait's Dictionary. " A merchant may have a distinct interest from tliat of his coimtry. He may " thrive by a trade that will prove her ruin." — British Merchant. " Manufactures are now as necessary to our independence as to our comfort." Jefferson. " It is the interest of the community, ^vith a view to eventual and permanent " economy, to ejicourage the gro-wth ef manufactures." — Hamilton. PHILADELPHIA : M. CAREY & SONS. 1821. TO THOSE CITIZENS OF THE UNITED STATES, WHOSE EXPANDED VIEWS EMBRACE THE KINDRED INTERESTS OF AGRICULTURE, MANUFACTURES, AND COMMERCE; ■WHO BF.I.IBTE THAT NATIONAL INDUSTRY IS THE ONLY LEGITIMATE SOURCE OF NATIONAL WEALTH AND PROSPERITY; WITH DR. FRANKLIN, '• THAT INDUSTRY IN ALL SHAPES, IN ALL INSTANCES, AND BT ALL /' " MEANS, SHOULD BE PROMOTED j" WITH THOMAS JEFFERSON, " THAT MANUFACTURES ARE NOW AS NECESSARY TO OUR INDEPENDENSE " AS OUR COMFORT ;" WITH ALEXANDER HAMILTON, '• THAT THE INDEPENDENCE AND SECURITY OF A COUNTRY ARE " MATERIALLY CONNECTED WITH THE PROSPERITY OF ITS MANUFACTURES;" WHO AHE OPPOSED TO THE POUCT OB LAVISHING THE WEALTH OF THE NATION TO SUPPORT FOREIGN GOVERNMENTS AND FOREIGN MANUFACTURERS, Aim IMPOTERISHIira OUR OWN COUNTRY AND OUR FELLOW CITIZENS ; WHO HOLS THE SOUm) DOCTBIITE, THATNATIONS, LIKE INDIVIDUALS, MUST SUFFER DISTRESS AND MISBRV WHEN THEIR EXPENSES EXCEED THEIR INCOME; AND THAT A POLICY Vhich converts a large portion of ous citizens into hucksters and retailers of foreign productions, IWSTEAD OF PRODUCERS FOR HOME CONSUMPTION IS RADICALLY UNSOUND AarB FifTAixr, that THE RUINOUS EXPERIMENT WE HAVE MADE OF OUR PRESENT SYSTEM OPOR FIVE YEARS, POINTS ©CT, "WITH A PENCIL OF LIGHT," THE IMPORTANT TRUTH, PUT ON RECORD BY LORD CHATHAM, « THAT IF ANY THING CAN PREVENT THE CONSUMMATION OF « PUBLIC RUIN, IT CAN ONLY BE NEW COUNCILS ; « A SINCERE CHANGE, FROM A SINCERE ^ CONVICTION OF ERROR," THIS WORK IS RESPECTFULLY DEDICATE©, BY THE AUTHOR. March 17, 1820. CONTENTS. CHAP. I. — Preliminary ob-<>en>ations. State of the nation. Whence it arises. Short-sighted poiicy. Decline of commerce inevitable. CHAP. II. — Sketch of the state of the nation from the fieace of Paris till the organization of ihe present federal government. Analogy •with our present state. Unlimited freedom of commerce fairly tested. CHAP III — Adoption of the federal constitution. Its happy effects. Uutr impolicy of the tariff. Manufactures and manufacturers not protected. Hamilton's celebrated report. Glaring inconsistency. Excise system. Its unproductiveness. - - - - CHAP. IV. — Memorials to congress. Deceptions report. List of ex- ports. Tariff of \Bb4:. Wonderful oml-ision. Immense importations of cotton and wooilm goods. Ex port ations of cotton. Various causes ivhich prevented the ruinous operation of the early tariffs. CHAP' V- — Declaration of ivar. Blankets for the Indians. Dis- graceful situation oj thi^ united states Governor Gei-ry. Sufferings of the army. Rapid progress of national industry. - _ _ CHAP. VI. — State of the country at the close of the ivar. Pernicious ^ conseyutiices to the manufacturers. Mr. Dallas's tariff. Pates re- duced ten, twenty, and thirty per cent. - _ . _ CHAP. VII. — Ruin of the manufacturers, and decay of their estab- lishments. Pathetic and eloquent appeals to congress. Their con- tumelious and unfeeling neglect. Memorials neither read no? report- ed on Revolting contrast between the fostering care bestowed bxj Russia on its manufacturers, and the unheeded sufferings of that class of citizens in the united states. - _ _ ^ _ CHAP. VIII. — Dilatory mode of proceeding in congress. Lamentable waste of time. Statement oJ the progress cf bills, highty-two sign- ed in one day I and four hundred and twenty in elrven I Unfeeling tr atmtnt of Gen. Stark Culpable attention to punctilio. Rapid movement of compensation bill. - - -. _ 33 258 CONTENTS. CHAP. IX — Attempts to firove the state of affairs prosperous. Their fallacy established. Destruction of industry in Philadelphia and Pittshurs^. Awful situation of Pennsylvania. 14,537 suits for drbt, and 10,326 jud,s!'Tnents confessed in the year 1819. Depreciation of real estate 115;544,629 dollars, . _ _ . _ CHAP. X — Causes assigned for the existing distress. Extravagant banking Transition to a state of peace. Fallacy of these reasons^. True cause, destruction of industry . Comparison of exports for six years. -------- CHAP. XI. — The everlasting complaint of " taxing- the many for the. benefit of the few." Fallacy and injustice of it. Amount of impost for fourteen years. For the year 1818. _ _ _ - CHAP. XIT. — Bnmense adva7itages enjoyed by the farmers and plant- ers for nearly thirty years. Flxorbitant prices of the necessaries of life. Great extent of the domestic market. Internal trade ef the united states. --------- CHAP. XIII.~ Calumnious clamour against the manufacturers on the ground of extortion. Destitute of the shadotv of foundation. Rise ojf merino wool 300 per cent. _ _ _ . . CHAP^ XIV. — The agricultural the predominant interest in the united states. Great advantages to agriculture from the vicinity of manu- facturing establishme ts. Case of Aberdeen. Of Harmony. Of Providence. Fall of lands the result of the decay of manufactures . CHAP. XV. — General reflections on commerce. Conducted on terms oj reciprocity, highly advantageous. Commerce of the united states carried on upon very unequal terms Has produced most injurious consequences. Tables of exports. Estimates of the profits of com- Tnerce __--__.- CHAP. XVI. — Fostering care of commerce by congress. The coasting and China trade secured to our merchants exclusively from the year 1789. Revolting partiality. Wonderful increase of tonnage. Acton the subject of plaster of Paris. Law levelled against the British navi- gation act. Rapidity of legislation. - - _ . _ CHAP XVII — Erroneous views of the tariff. Protection of agricul- ture in 1789 Prostrate state of the staples of South Carolina and Georgia. JVinety per cent, on snuff, and one hundred on tobacco. Striking contrast. Abandonment of manufactures. CHAP. XVI II. — An awful contrast. Distress in Great Britain, be- cause she cannot engross the supply of the world. Distress in the united states, because the home market is inundated with rival manu- factures. ----------- CHAP. XIX — Encouragement and patronage of immigrants by En- gland and France Advantages of the united states. Great num- bers oj immigrants. Their sufferings. Return of many of them. Interesting table. -------- INTRODUCTION. This work may be considered as a second edition, much en- larged and improved, of the Three Letters to Mr Garnett, re- cently published ; as it contains nearly the whole of the matter of those letters. It has been written with a thorough conviction, that there is a complete identity of interest between agriculture, manufac- tures, and commerce ; that when any one of them suffers mate- rial injur)?, the others largely partake of it ; and that a great pro- portion of the distress of this country has arisen from the er- roneous views of our statesmen on the subject of manufactures, which have been cramped and stunted, and finally in part anni- hilated in the most important branches, for want of that foster- ing care bestowed on them in England for ages, and recently in France in the most exemplary manner, and with the most bene- ficial effect. I have, therefore, endeavoured to prove — 1. That the policy pursued by this nation in its tariff, from the commencement of its career, has been radically wrong. 2. That this tariff has sacrificed a large portion of the nation- al industry ; to the incalculable injury of the united states, and to the immense advantage of the manufacturing nations of Eu- rope. 3. That its tendency has been to render us tributary to those nations — converting a large portion of our population into hucksters and retailers of their productions, instead of produ- cers for our own consumption ; and rendering the great mass of the remainder consumers of those productions — thus prodi- gally lavishing our wealth to support foreign manufacturers and foreign governments — and impoverishing the nation to an alarm- ing degree. 4. That this system has had the obvious and pernicious effect of narrowing the field for the exercise of native industry and tal- ent — and consequently of crouding immoderately those profes- sions that were open to the national enterprize. From this source has arisen the great number of merchants, so far beyond what was required by the commerce of the country. 5. 1 have hence deduced the ruin of so large a proportion of that class. It was a necessary consequence of the over-driven 260 INTRODUCTION. spirit of competition. This maybe exemplified in every depart- ment of human industry. In a town which would support two lawyers, doctors, or storekeepers genteely, three would barely make a living, and four be ruined. And finally — 6. I have endeavoured to shew, that a due degree of protec- tion to manufactures would have been highly serviceable to ag- riculture and commerce. These views of our affairs are presented to the public with a sincere belief of their soundness. But, like other theorists, I may have deluded myself. However, whether right or wrong, the discussion cannot fail to prove useful — as it will shed light on the most important subject that can occupy the public atten- tion — the means of promoting individual happiness, and nation- al " wealth, power, and resources" — of removing the present in- tolerable evils, of which the secretary of the treasury, in his re- port of the 21st ultimo, has justly declared, that '-''fezu examples have occurred^ of distress so general, and so severe^ as that which has been exhibhedin the united states.^'' This important subject is worthy of the undivided attention of every man interested for the public welfare. If my views be incorrect, I shall rejoice to have the errors pointed out, and shall cheerfully recant them. Any suggestions on the subject will be received with thankfulness, and attended to. But if the ground I have taken be correct, 1 hope and trust the investigation may lead to a different course of policy, calcu- lated to enable us to realize the blessings promised to us by our constitution and our natural advantages, which at present so provokingly elude our grasp. Philadelphia. March 17th ^\^20. THE NEW OLIVE BRANCH. CHAPTER I. Preliminary observations. State oj" the nation. Whence it arises . Short-sighted policy. Decline of commerce inevitable. Substi- tutes ought to have been provided for the superjiuous mercantile capital.^ talent and industry. It is impossible for any one who can say with Terence — " I am a man — interested in whatever concerns my fellow men" — to take a calm and dispassionate view of the existing state of affairs, in this heaven-favoured land, without feeling deep dis- tress, and a melancholy conviction, that we have made a most lamentable waste of the immense advantages, moral, physical, and political, we enjoy — advantages rarely equalled, scarcely ever exceeded ; and that our erroneous policy has, in five years, produced more havoc of national wealth, power, and resources, and more individual distress, than, in a period of profound peace* has taken place in the same space of time, within two hundred years, in any nation in Europe, except Portugal. That governments are instituted for the protection, support, and benefit of the governed, is a maxim as old as the dawn of liberty in the world. The administrators are the mere agents of their constituents, hired to perform certain duties, for which they are here paid liberal salaries. The grand objects of their care are — the security of person — security of property acquired, and in the acquisition of. property — with the right of worshipping God as each man's conscience dictates. And government, by whatever name it may be called, is only estimable in proportion as it guards those sacred depo- sits. Our dear-bought experience proves, that the happiness of individuals and the prosperity of nations are by no means pro- portioned to the excellence of their forms of government. Did that excellence necessarily produce its natural results, we should rank among the happiest of nations, ancient or modern ; where- as, unfortunately, at present we occupy a low grade in point of prosperity. * Other nations usually and natiu-ally recover in peace from the injuries inflict- ed by war. We rose in war — and alas ! are sinking in peace ! ! ! What an awful view ! 262 THE NEW OLIVE BRANCH- It is a melancholy feature in human affairs, that no institu- tions, however perfect — no administration, however upright or wise, can guard the whole of a nation against distress and em- barrassment. Accidents, not to be foreseen, or, if foreseen, not to be guarded against — imprudence, extravagance, and various other causes will frequently, in the most prosperous communities, produce a large portion of distress. This state of things is no impeachment to the goodness of the form of government, or the wisdom of its administrators. But when, as is our case, considerable bodies of people, whole sections of a nation, are involved in distress and embarrassment — when a large portion of the productive industry of the coun- try is laid prostrate — when most useful establishments, the pride, the glory, the main spring of the wealth, power, and resources of nations, are allowed to fall to ruins, without the slightest ef- fort to save them on the part of the legislative power, whose pa- ramount duty it is to interfere in their defence — when constitu- ents, writhing in distress and misery, call in vain on their re- presentatives for relief, which is within their power to afford — there must be something radically wrong in the people, or in the form of government, or radically vicious and pernicious in its legislation. The policy of a free government, good or bad, emanates from the legislative body, which has the destinies of the nation in its hands. The executive officers in such nations, who are gene- rally stiled the administration, have little power to avert the evils of a vicious, or to prevent the beneficent consequences of a wise legislation. This is peculiarly the case in our country. That the decay of our prosperity — the sufferings of our citi- zens — could not exist in a time of profound peace, without some great natural calamity---some radical defects in the people — great vice in the form of government — or an unsound system of policy, will not be controverted. Our distresses do not arise from any natural calamity. None has befallen us. Nor from the people. They are shrewd, intelligent, indus- trious, active, and enterprizing to a high degree. A wise legis- lator or statesman could not desire sounder materials to form the structure of a happy and prosperous society, and render his name immortal. Nor from the form of government. That, like every work of man, it has defects, must be conceded. But that it is the best the world ever witnessed, is susceptible of full proof on fair compa- rison with any that at present exist — or that ever existed. Our sufferings, therefore, are chargeable to our policy, which, I repeat, emanates from our general legislature, to whom, if our evils are not irremediable, we must apply for relief. vTHE NEW OLIVE BRANCH. 263 This declaration, as to the source of our distresses, requires qualification, so far as regards the diminution of our commerce, and the depreciation of the prices of our staples generally, nei- ther of which congress could have prevented. Cotton is an exception. For the ruinous reduction that has taken place in that article, they are answerable to their countiy. They might have readily made a domestic market, which would have preserved the price from any material depreciation, and :>aved the cotton planters above 7,0( 0,000 of dollars, and the merchants who purchased before the reduction, nearly 4,000.000. It required but a slender view of the state of our affairs, and of our future prospects, to have enabled our statesmen to foresee that the new state of affairs throughout the world re- quired a total change of policy. As we could no longer hope to be the carriers for Europe ; and as the immense armies dis- banded by the different belligerents, would be devoted partly to the labours of the field, and partly to work-shops and manufac- tories, whereby not only the markets for our staples, bread-stuffs particularly, would be diminished, but the quantity of manufac- tures there would be greatl) increased ; it required but little sa- gacity to see that a large portion of the talents, the capital, and the industry of our merchants, would be bereft of their usual employment : and therefore, every motive of policy, and regard for the public and private welfare, required thsit some other chan- nel should be opened to give them activity. But these were views beyond the grasp of most of our statesmen ; and, far from hold- ing out any new inducements to enter on manufacturing pur- suits, which would have absorbed the superfluous mercantile capital, they unwisely diminished those that existed, by repeal- ing the double duties in June, 1816, whereby the revenue lost millions of dollars, and the manufacturing industry of the country received a severe wound. The goal to which the policy we pursued after the late war, tended, was early foreseen and distinctly pointed out. The do- mestic exports of the country, the grand legitimate fund for the payment of our imports, for twenty years, from 1796 to 1815, inclusively, ainounted to only 698,676,879 dollars, or an average of nearly 35,000,000. Whereas our imports in the year 1815, exclusive of re-exportations, amounted to above 118,000,000. Lives there a man who could for a moment doubt where such a course of proceeding would land us ? Or, that our exports, which, under the immense advantages we enjoyed during the French revolution, only rose to the above average, would never, in a time of peace, enable us to pay for such extravagant impor- tations ? It was impossible to take the most superficial view of the subject, without being satisfied that we were as completely in the high road to destrwiction as a young man who has attained 264 THE NEW OLIVE BRANCH. to the possession of a large estate, and who expends more than double his income. A wonderful feature in the affair is, that the net impost which accrued in 1815, was 36,306,022 dollars, being one million more than the annual average of the whole of our exports for twenty years ! ! Independent, therefore, of all concern for our manufacturers, some decisive efforts ought to have been made to diminish our imports, in order to arrest the career of national impoverish- ment. But the flourishing state of the revenue, which, with too many of our statesmen, absorbed all other considerations, ap- peared to promise a new fiscal millenium.=*= And hence the fatal repeal of the internal duties, which was carried by the over- whelming majority, in the house of representatives, of 161 to 5, in December, 1817 — than which a more wild and injudicious measure could hardly have been devised. We have lived to see its folly, and to deplore its consequences. What would be thought of the skill of a physician, who, while bleeding his patient to a state of inanition, was congratulating himself on the quantity and excellence of the blood pouring out of his veins! — such is the case precisely of those statesmen, who form their ideas of national prosperity from the great extent of the customs, more frequently, as it has proved with us, an uner- ring sign of decay. Ustariz, a celebrated Spanish political econ- omist, gives an admirable lesson on this subject ! — how deserv- ing of attention ! but how little attended to! " It aggravates the calamity of our country that the customs *' have improved and yielded more by the increase of imports ; " since it is so unfortunate a circumstance for us, that in order to " advance them a million of dollars^ estimating one duty -with ano- " ther at the rate of eight per cent. ^ after an alloxvance for frauds " and indidgences .^ there must be drawn out of the kingdom twelve " millions of dollars,''''] It cannot be too deeply lamented, that in placing before con- gress the calamitous situation of our manufactures and manu- facturers, (which, by the way is, but very lightly touched on) both the president and the secretary of the treasury, the former in his message, and the latter in his annual report, in recom- mending attention to the relief of this suffering class of citizens, express some hesitation on the subject, and speak hypothetical- ly, particularly the secretary. * It is a fact, that some of our great statesmen, in 1817, were sanguine enough to believe that the treasury would continue to overflow so fast, that the national debt would be paid off in a very few years ! \ Ustariz on the theory and practice of commerce and maritime affairs, vol. i. p. 6, THE NEW OLIVE BRANCH. 265 The president states : — " It is deemed of importance to encourage our domestic " manufactures. In what manner the evils which have been ad- " verted to may be remedied, and how it ma}' be practicable in *' other respects, to afford them further encouragement, paying '''■due regard to the other great interests of the nation^ is submit- " ted to the wisdom of congress." The observation of the secretaiy is — ^ *' It is believed that the present is a favourable moment foraf- " fording efficient protection to that increasing and important in- " terest, ij it can be done consistently xvith the general interest " of the nation f Good heavens ! what an appalling if! Was there ever such an unlucky word introduced into a public document ! *■' -^it '' can be done consistently with the general interest of the na- " tion !" As if a statesman could for an instant doubt whether protecting and fostering this all-important portion of the nation- al industry — reducing our imports or expenses, within our ex- ports or income — and arresting the progress of distress and de- cay, could, in any possible case, be otherwise than " consistent '■'■with the general interest of the nation P'' As if it could be a matter of doubt, whether the contingency of our citizens paying a few dollars more per annum, for American manufactures than for foreign ones, (supposing that to be the case, which I shall prove wholly destitute of foundation,) is to be put into compe- tition with the bankruptcy of our manufacturing capitalists — the beggary of our working people — and the impoverishment of the nation ! Some of my friends have endeavoured to dissuade me from using the freedom of style, which prevails in this work. They declare it imprudent, as likely to prevent attention to the ap- plications of the manufacturers. I have duly weighed this very prudent advice, and cannot persuade myself to adopt it. The manufacturers require no favours. They only seek justice — they only seek that protection which has been so liberally accorded to commerce. Believing the system, pur- sued radically vicious and pernicious, it is the right and the duty of every man who suffers by it, to enter his protest against the ruinous course pursued — to trace it to its causes — and to display its consequences. I have used the language of a freeman. If the conduct I denounce, betray a manifest derelic- tion of duty, can there be any impropriety in marking the dere- liction ? In countries less free than the united states, far great- er severity is used in discussing the conduct of government. 34 266 THE NEW OLIVE BRANCH. Why then should it be criminal or improper here ? If any ot my statements be incorrect, or my inductions illogical, I shall freely retract and apologize for them. But till then, I throw myself on the good sense of the community, and dare the con- sequences. CHAPTER. II Sketch of the state of the nationfrom the peace of Paris till the or- ganization of the present federal government. Analogy with our present state. Unlimited freedom of commerce fairly tes- ted At the close of the revolutionary war, the trade of America was almost absolutely free and unrestrained in the fullest sense of the word, according to the theory of Adam Smith, Say, Ri- cardo, the Edinburgh Reviewers, and the authors of the Evicy- clopgedia. Her ports were open, with scarcely any duties, to the vessels atid merchandize of all other nations. In Pennsyl- vania, they were only about two and a half per cent. Even these were nugatory : because there was a free port established at Burlington, by the state of New Jersey, where a very large portion of the goods intended for Philadelphia were entered, ar.d conveyed over to this city clandestinely. The same fraudu- lent scenes were acted in other states, and thus trade was, as I have stated, almost wholly free. If enthusiasts did not too generally scorn to trammel them- selves by attention to facts, this case would settle the question of unrestrained commerce for ever — and prove, that the system ought to be postponed till the millennium, when it is possible it may stand a chance of promoting the welfare of mankind. But till then, woe to the nation that adopts it. Her destruction is sealed. But unfortunately theorists carefully avoid the facts that endanger their systems, how strong or convincing soever they may be. This saves an immensity of trouble. Hence in some of the grand systems of political economy, which have acquired great celebrity, you may travel through fifty or a hundred pages together, of most harmonious prose, all derived from a luxuriant imagination, without your career being arrested by a single fact. But on a little reflection or examination, you may as readily find a single fact, recorded elsewhere in ten lines, which demolishes the whole. From almost every nation in Europe, large shipments were made to this country— -many of them of the most ludicrous kind, THE NEW OLIVE BRANCH. 267 which implied an utter ignorance of the wants, the situation and the resources of the united states. Among the re^t, the re- cesses of Monmouth street, in London, and Plunket street, in Dublin, the receptacles of the cast-ofF clothes of these two capi- tals, were emptied of a portion of their contents ; for it was sup- posed that the war had rendered the nation destitute of every thing, even of covering. Happy was the man who could send " a veriture^'' as it was called, to this country, which the mis- guided Europeans supposed an El Dorado, where every thing was to be converted into gold with a cent per cent, profit at least. Goods often lay on the wharves for many days for want of store room. House rent rose to double and treble the former rates. The importers and consignees at first sold at great advances — and believed they were rapidly indemnifying themselves for the deprivations and sufferings of the war. "" But these glorious times soon came to a close like those of 1815. From "day dreams" and delusive scenes of boundless wealth, the citizens awoke to pinching misery and distress. The nation had no mines to pay her debts. And industry, the only legitimate and permanent source of individual happiness, and national wealth, power, and resources, was destroyed, as it has re- cently been by the influx, and finally by the depreciation of the price, of the imported articles : for the quantity on hands being equal to the consumption of two or three years, of course the great mass of goods fell below cost — often to half and one-third. All our citizens were at once converted into disciples of Adam Smith. They purchased every species of goods "cheaper than they could be manufactured at home." Accordingly domestic manufactures were arrested in their career. The weaver, the shoemaker, the hatter, the saddler, the sugar baker, the brewer, the rope maker, the paper maker, &c. were reduced to bankrupt- cy. Their establishments were suspended. Their workmen were consigned to idleness and all its long train of evils. The payment for the foreign rubbish exhausted the country of near- ly the whole of its specie, immense quantitiesof which had been introduced to pay the French and British armies, and likewise from the Spanish colonies. Two thirds probably of the specie then in the country were composed of French crowns. However calamitous the present state of affairs, we have not yet sunk to so low an ebb, as at that period. I have in 1786 seen sixteen houses to let in two squares, of about 800 feet, in one of the best sites for business in Philadelphia. Real pro- perty could hardly find a market. The number of persons re- duced to distress, and forced to sell their merchandize, was so great, and those who had money to invest, were so very few, that the sacrifices were immense. Debtors were ruined, with- out paying a fourth of the demands of their creditors. There 268 THE NEW OLIVE BRANCH. were most unprecedented transfers of property. Men worth large estates, who had unfortunately entered into business with a view of increasing their fortunes, were in a year or two total- ly ruined — and those who had a command of ready money, quadrupled or quintupled their estates in an equally short space. Confidence was so wholly destroyed, that interest rose to two, two and a half, and three per cent, per month. And bonds, and judgments, and mortgages were sold at a discount of twenty, thirty, forty, and fifty per cent. In a word, few countries have experienced a more awful state of distress and wretchedness. To corroborate these views, I annex historical statements of the situation of the country. " In every part of these states, the scarcity of money has be- *' come a common subject of complaint. This does not seem *' to be an imaginary grievance, like that of hard times, of which *' men have complained in all ages of the world. The misfor- " tune is general, and in many cases it is severely felt. The *' scarcity of money is so great, or the difficulty of paying debts *' has been so common, that riots and combinations have been ^'•formed in many places^ and the operations of civil government " have been suspended.'^'''' " Goods -were imported to a much greater amount than could be " consumed or paidJor?''\ " Thus was the usual means of remittance by articles the *' growth of the country, almost annihilated, and little else than *' specie remained, to answer the demands incurred by importa- *'tions. The ^noney^ of course^ xvas draivn off; and this being " inadequate to the purpose of discharging the whole amount of ^'•foreign contracts^ the residue was chiefly sunk by the bankrupt- *' cies of the importers. The scarcity of specie, arising principal- *' ly from this cause, was attended with evident consequences ; " It checked commercial intercourse throughout the community, " and furnished reluctant debtors with an apology for withhold- " ing their dues both from individuals and the public.":}: " On opening their ports, an immense quantity of foreign mer- ^^ chandize xvas introduced into the country ^and they were tempt- " edby the sudden cheapness of imported goods .^ and by their own "wants, to purchase beyond their capacities for payment. Into " this indiscretion they were in some measure beguiled by their *' own sanguine calculations of the value which a free trade " would bestow on the produce of their soil, and. by a reliance " on those evidences of the public debt which werenn the hands " of most of them. So extravagantly too did many estimate the *' temptation which equal liberty and vacant lands would hold " out to emigrants from the old world, as to entertain the opin- * Dr. Hugh Williamson. I Minot's history of the Insurrection in Massachusetts, p. 2. % fdeiD, p. 13, THE NEW OLIVE BRANCH. 269 " ion that Europe was about to empty itself into America, and *'tbat the united states would derive from that source such an " increase of population, as would enhance their lands to a price " heretofore not even conjectured."* *' The bonds of men, whose competency to pay their debts "was unquestionable, could not be negociated but at a discount '■'■oi thirty ^ forty ^ and Jiffy per centum : real property was scarce- *■'■ ly vendible; and sales of any articles for ready money could *' be made only at a ruinous loss. The prospect of extricating *' the country from those embarrassments was by no means flat- " tering. Whilst every thing else fluctuated, some of the causes *' which produced this calamitous state of things were perma- " nent. The hope and fear still remained, that the debtor party " would obtain the victory at the elections ; and instead of ma- " king the painful effort to obtam relief by industry and *' economy, many rested all their hopes on legislative interfe- " rence. The mass of notional labour and national wealth was " consequently diminished ''''\ " Property^ when brought to sale under execution^ sold at so low u d price as frequently milled the debtor without paying the credi- *' tor. A disposition to resist the laws became common : assem- **• blies were called oftener and earlier than the constitution or "laws required."! *' Laws were passed by which property of every kind was " made a legal tender in the payment of debts.^ though payable *' according to contract in gold or silver. Other laws installed *' the debt, so that of sums already due, only a third, and after- " wards only a fifth, was annually recoverable in the courts of " law."§ '-'■ Silver and gold^ which had circulated largely in the latter " years of the rvar, were returning by the usual course of trade to *' those countries^ xvhence large quantities of necessary and un- " necessary commodities had been imported. Had any general *' system of impost been adopted, some part of this money might " have been retained, and some part of the public debt discharg- " ed ; but the power of congress did not extend to this object ; *' and the states were not united in the expediency of delegating *'new and sufficient powers to that body. The partial imposts, *' laid by some of the states, were ineffectual, as long as others *' found their interest in omitting them."|| " The people of New Hampshire petitioned ; and to gratify " them the legislature enacted, that when any debtor shall tender " to his creditor., in satisfaction oj an execution for debt., either * Marshall's Life of Washington, V. p. 7S. \ Idem p. 88. t Ramsay's S. Carohna. II. p. 428. § Belknap's History ot New Harasplure,II. p. 352. B Idem, p. 356. 270 THE NEW OLIVE BRANCH. « real or personal estate siifficient^ the body of the debtor shall *' be exempt from imprisonment, and the debt shall carry an in- *' terest of six per cent. ; the creditor being at liberty either to " receive the estate, so tendered, at a value estimated by three *' appraisers, or to keep alive the demand by making out an ali- " as, within one year after the return of any former execution, " and levying it on any estate of the debtor which he can find."* While our citizens were writhing under these evils, destitute of a circulating medium, industry universally paralized, thou- sands every where deprived of the means of supporting their fa- milies, bankruptcy daily swallowing up in its vortex our mer- chants, tradesmen, manufacturers, and artisans — it is not won- derful thatrecourse was had to various indefensible means, to pal- liate the evils. The real source, that is, the want of an adequate tariff to protect national industry by high duties and prohibi- tions, was not explored — and even if it had been, there existed no authority competent to apply a remedy. Among the expedients employed, emissions of paper money, legal tenders, appraisement acts, and suspensions of the opera- tion of courts of justice in regard to the collection of debts, were the most prominent. These were but miserable palliatives of a disordor arising solely, I repeat, from the destruction of the national industry, and which nothing but its resuscitation could remove. In Massachusetts, the suffering rose higher than in any other part of the united states. Riotous collections of people assembled in various parts at the periods for convening the courts of com- mon pleas, to prevent their proceedings ; and actually in every instance but one, according to judge Marshal, carried their pur- poses into execution. In fact, so severe was the distress, and so numerous were the debtors, that they more than once had a majority in the legislature. The evil under the existing form of government was incurable. It ended in an open insurrection, under Shays, a revolutionary officer, which was crushed by the energy of governor Bowdoin and his council — and the decision of generals Lincoln and Sheppard. Some idea may be entertained of the state of public affairs, quite as deplorable as those of individuals, from the circum- stance that governor Bowdoin having laised four thousand mili- tia against the insurgents, there was not money enough in the treasury to support that small army for one week ; and they could not have been marched but for the patriotism of a number of public-spirited individuals, who subscribed the sum necessary for the purpose. * Belknap's history of New Hampslure vol. II. p. 429. THE NEW OLIVE BRANCH. 271 " The public treasury did not afford the means of keeping this " force in the field a single week : and the legislature not being " in session, the constituted authorities were incapable of put- " ting the troops in motion. This difficulty w^as removed by in- " dividual patriotism !"* The insurrection produced a salutary effect, by spreading a conviction of the utter inefficacy of the existing form of govern- ment, and of the imperious necessity of adopting a new one. — The difficulty under which the federal constitution laboured in its progress, notwithstanding the impetus it received from this alarming event, shews that it would have probably failed of suc- cess, had not the public distress arrived at its highest pitch. Those of our citizens who ascribe the existing calamities to the baleful career of the banks, are advised to consider this parallel case, wherein banks had no agency. When the war closed, there was but one bank in the united states, that of North America, located in the city of Philadelphia, with a capital of 400,000 dollars. And in 1785, when embarrassment and distress pervaded the state, many of the citizens in casting round to discover the source, believed, or affected to believe, that they sprang from the operation of this institution. Accord- ingly petitions were presented to the legislature to repeal its charter. Counsel were heard at the bar of the house for and against the bank — the late respected Judge Wilson in defence, and Jonathan Dickinson Sargeant, father of the present member of congress from Philadelphia, in opposition. The state, let it be observed, was then divided into two parties, very violently em- bittered against each other. The repeal was quite a party ques- tion, and decided by party views. The majority in the legisla- ture were hostile to the institution, and repealed the charter, which measure they regarded as a sovereign remedy for all the existing evils. Had the repeal been effectual, it would have mul- tiplied instead of diminishing them. But having a charter from congress, the bank set the legislature at defiance, and pursued " the even tenor of its way," unruffled by *' the peltings of the pitiless storm." It may gratify curiosity to see the view given of the tremen- dous influence which was conjured up for this institution, in or- der to alarm the citizens, and justify the repeal. The committee to whom the petitions were referred, in their report stated — I " That foreigners will doubtless be more and more induced tc» " become stockholders, until the time may arrive when this en- " ormous engine of power may become subject to foreign infiu- " ence. This country may be agita'ted with the politics of Euro- *' pean courts ; and the good people of America reduced once more ♦ Marshall's Life of Washin^on, vol. V. p. 121. 272 THE NEW OTIVE BRANCH. *' into a atate of subordination and dependence upon some one or " other of the European powers /"* On the 17th of Feb. in the year 1784, the Massachusetts Bank was incorporated, with power to hold in real estate 50,000/. and to raise a capital stock of 500,000/. The subscription did not, I have reason to believe, exceed at that time 400,000 dol- lars. In the same year the state of New York incorporated the bank of that name, with the extent of whose capital I am unac- quainted. These were the only banks in existence in the united states, previous to the adoption of the federal constitution. And as distress and embarrassment equally pervaded those states where there were none, it is absurd to ascribe the evil to those institu- tutions where they existed. In North Carolina there were two emissions of paper money, with a legal tender, from 1783, to 1787. They depreciated fif- ty per cent, in a short time. The state of affairs described in tlie preceding pages accounts for a fact which has always excited deep regret, and which, I believe, has never been traced to its source. I mean the de- preciation of the public securities, which the holders were obli- ged to part with at ten, twelve and fifteen cents in the dollar, whereby a large portion of the warmest friends of the re volution, who had risked their lives and embarked their entire property in its support, were wholly ruined, and many of its deadly ene- mies most immoderately enriched. Never was Virgil's celebra- ted line more applicable — Sic vos — non vobis, mellificatis, ape«. The reader is requested to bear these pictures of distress in mind, during the perusal of the chapter in which I propose to investigate the causes assigned for the evils under which the community labours at present. They shed strong light on the subject. Well as I am aware of the pertinacious adherence of mankind to theory, and the difficulty of breaking the intellectual chains by which it holds the mind, I cannot refrain from again urging the strong case of this country at that period on the most seri- ous consideration of the disciples of Adam Smith, Say, Ricardo, and the other political economists of that school. It ought to dispel forever the mists, on the subject of unrestrained com- merce, which that abstruse work, the Wealth of Nations, has spread abroad. Here the system had fair scope for operation. * Journal of the house of representatives, March 28, 1785. THE NEW OLIVE BRANCH. 273 The ports of this country, I repeat, were open to the commerce of the whole world, with an impost so light as not even to meet the wants of the treasury. We had none of those " rcntrictions-^^'' ^^ prohibitions^^ or" prohibitory duties^^'' to which the new school of political economists ascribe the sufferings of England and of this country. We " bought our tnerchundize xvhere it could be had " cheapest^'' and the consequences followed, which have never failed to follow such a state of things. Our markets were glut- ted. Prices fell. Competition on the part of our manufactur- ers was at an end. They were beggared and bankrupted. The merchants, whose importations had ruined them, were them- selves involved in the calamity. And the farmers who had fe- licitated themselves on the grand advantage of " buying foreign *' merchandize cheap," sunk likewise into the vortex of general destruction. Would to heaven that the precious and invaluable lessons these facts afford may not in future be thrown away on our statesmen and the nation at large ! Had they been duly attend- ed to, at the close of the late war, the united states, instead of the afflicting scenes they now exhibit, would present a picture of prosperity, public and private, v/hich would have realized the fondest anticipations of the philosophers of both hemispheres — anticipations which have been most lamentably disappointed — and " like the baseless fabric of a vision^^ scarcely " left a trace " behind:^ CHAPTER III. Adoption of the federal constitution. Its happy effects. Utter impolicy of the tariff. Manufactures and manufacturers not protected. Hamiltoii's celebratedreport. Glari7ig inconsisten- cy. Excise systetn. Its unproductiveness. The adoption of the federal constitution operated like magic ; produced a total change in the state of affairs ; and actually re- moved no small portion of the public suffering, by the confidence it inspired, even before the measures of the government could be carried into effect. The united states began their career in 1789, with advantages never exceeded, rarely equalled. The early administrators of the government had a high degree of responsibility. They were laying the foundations of an empire whic h may be the most ex- Z5 274 THE NEW OLIVE BRANCH. tensive and powerful the world ever knew, and whose destinies they held in their hands, 1 he tariff was fraught with errors of the most grievous kind. Disregarding the examples and the systems of the wisest na- tions of Europe, it was calculated to sacrifice the resources of the country for the benefit of foreign manufacturing nations. And indeed had it been framed by an agent of any of those nations, it could not have answered the purpose better. It afforded them nearly all the benefits usually derived from colonies, without the expense of their support. It deprived our manufacturing citizens of all the advantages of reciprocity in their intercourse with the rest of the world. The era is not long passed over, when any man who dared to arraign the conduct of the early congresses under the federal constitution, and accuse them of having established tariffs which sacrificed the dearest interests of their country, and clipped its wings in its flight towards the high destinies to which its extent, its government, the energies of the people, and the great variety of other advantages which it possessed, bid it aspire, would be regarded with jealousy, and covered with obloquy. The voice of reaoon, of truth, and of history, would have been smothered amidst the loud clamours of prejudice and party. But I trust the fatal results of the system have prepared the public mind to hear with patience, and judge with candour, the facts on which I ground these opinions, and the inductions I draw from them. To those who consider the mode in which the members of congress are elected — the various quarters from which they come — the different degrees of illumination that prevail in the districts they respectively represent — how many neglect to pre- pare themselves fully for the stations they occupy-^ — it will not appear wonderful that the views of a portion of them are con- tracted, and do not embrace on a broad and comprehensive scale the interests of the nation as one grand whole. The want of adequate protection to the productive industry of the manufacturers, conspicuous in the first and the succeeding ta- riffs, may be accounted for from the concurrence in one object of four descriptions of citizens, whose particular views, however, were entirely different. I. The most influential members of the mercantile class have appeared at all times jealous of the manufacturers, and been dis- posed to regard adequate protection to them as injurious to the prosperity of commerce. Hence they have too generally and too successfully opposed prohibitions and prohibitory duties as li- miting their importations of foreign goods. Although there are many gentlemen of this class whose views are expanded and li- beral, there is a large proportion whose opposition remains una- bated. THE NEW OLIVE BRANCH. 275 II. Many of the agriculturalists too have been equally jealous of the ji;anufa(turers — opposed the Imposition of duties ade- quate to the protection of their fellow citizens — and not allowed a single article to be prohibited. They dreaded an extravagant rise of price as a necessarv result of securing the home market to our own citizens. It does not appear to have ever entered into their calculations, that, in a country like the United States, where monopolies are excluded, and where industry and enterprize so generally prevail, and are so wholly uncontrolled, the competi- tion would, to use the words of Alexander Hamilton, assuredly *' bring prices to their proper level.'''' III. The third description comprised the disciples of Adam Smith, who contended that trade ought to be allowed to regulate itself — that commerce should be left unrestrained — that all na- tions ought to buy wherever they could procure articles cheap- est, &c. &c. IV. The fourth class considered themselves, and were regard- ed by others, as of a higher order. The whole of their political economy was, however, confined within veiy narrow limits. It never travelled beyond the collection of revenue. The ways and means were their alpha and omega, their sine qua non. Provi- ded the treasury was overflowing, they had neither eyes, nor ears, nor tongue for any other object. We have for years past seen that with statesmen of this description the spread of bank- ruptcy throughout our cities — the dt cay of splendid manufacturing- establishments — the distress of thousands of useful men — the wailings of helpless women and children, never excited any alarm. The importation of foreign goods, to the amount of 60,000,000 dollars, which exhausted the country of its specie, produced al- most universal distress, and devoted thousands of workmen to idleness, and part of them to beggary, was a subject of rejoicing — for it brought 15,000,000 of cloliars into the treasury ! This was the salve for every sore — the panacea, which, like the wa- ters of the Jordan, cleansed off all the ulcers and foulnesses of the body politic. This statement may appeartoo severe. But I beg the reader will not decide on the correctness or incorrectness of it, till he has read the chapter on the contumelious and unfeeling neglect of the pathetic applications of* the manufacturers to congress for relief in 1816, 1817, and 1818. The views of these four descriptions of citizens were aided by the extensive prevalence of a host of prejudices, which were sedulouslj' inculcated by foreign agents, whose wealth and pros- perity' depended on keeping this market open to their fabrics, and repressing the growth of our manufactures. 1 . The idea of the immense superiority of agricultural pur- suits and agriculturists over manufactures and manufacturers, was almost universally prevalent. It had been fondly cherished by •276 THE NEW OLIVE BRANCH. Great Britain and her friends here during the colonial state of the country, and long. afterwards : and no small portion of the citizens of the united states were unable to divest their minds of the colo- nial trammels, when the country assumed its independent rank among nations. 2. The same keen sensibility on the subject of smuggling was manifested, as we have so often witnessed more recently. This was assigned as a reason for admitting three-fovirths of all the manufactured merchandize under a duty of five per cent. ! ! 3. The miserable outcry on the subject of" taxing the many ^^for the benefit of thefexv^'' which is still used as a sort of war whoop against the manufacturers, was then in full force. 4. The back lands, it was asserted, ought to be cultivated be- fore the labour of our citizens was diverted off to manufactures. 5. The high price of labour in this country was by many re- garded as an insuperable bar, and a proof that " we were not yet ripe for manufactures." 6. The demoralization asserted to be inseparable from manu- facturing establishments, was among the prominent objections. There is a magic in great names which renders their errors highly pernicious. That Mr. Jefferson is a truly great man, is now, I believe, universally admitted, since the baleful passions, excited by party, have subsided, and the atrocious calumnies with which, in the days of faction and delusion, he was over- whelmed, have sunk into deserved oblivion. But that he has had no small degree of instrumentality in giving currency to the system we have pursued, it would be vain to deny. He has drawn a contrast between manufactures and agriculture, so im- mensely advantageous to the latter, as to have fostered the old, and excited new prejudices against the former, many of which still maintain their influence. Mr. Jefferson was born, brought up, and lived in a slave-holding state, a large portion of the in- dustry of which is devoted to the culture of tobacco, one of the most pernicious kinds of employment in the world. It more completely exhausts the soil, and debases and wears out the wretched labourer, tlian any other species of cultivation. How, under such circumstances, he could have drawn such a captiva- ting picture of the labours of the field, it is difficult to say. His Arcadia must have been sought, not in Virginia or Maryland, but in Virgil's or Pope's pastorals, or Thomson's seasons. This is not a place to enter into a comparison of these occu- pations, otherwise the boasted superiority might be found not to rest on so stable a basis as is generally supposed. THE NEW OLIVE BRANCH. 277 Mr. Jefferson lately retracted his opinions on those subjects. In a letter to B. Austin, Esq, of Boston, he distinctly states : — " To be independent for thecomjorts of life ^ toe must fabricate " them ourselves. We must now place the manufacturer by the ^'' side of the agricidturistJ'^ *' Experience has taught me, that manufactures are norv as ne- cessary to our independe7ice^ as to our comfort.'''' In order to justify the character I have given of the tariff of 1789, I annex a description of two tariffs, one calculated to pro- tect and promote individual industry and national prosperity, and the other to destroy both. FEATURES. A sound tariff 1. Renders revenue subsement to the promotion of individual industry and national prosperity. 2. Prohibits such articles as can be fully supphed at home on reasonable terms. 3. Imposes heavy duties on articles interfering- with the rising manufac- tures of the country. 4. Admits on light duties articles that do not interfere with the industry of the nation. A pernicious tariff 1. Regards revenue as the grand ob- ject of solicitude. 2. Prohibits no article whatever, how- e^er competent the country may be to supply itself. 3. Imposes such low duties on manu- factures, as, wliile they serve the pur- poses of revenue, cannot promote na- tional industry, or prevent or materially check impoi-tation. 4. Raises as large a portion of the revenue as possible on articles not in- terfering with the industry of the na- tion. CONSEQUENCES. A sound tariff" Secures emplojinent to industrj', capita], talent, and enterprize. Preserves the circulating medium, and dai'y adds to the wealth, power, and resoiucesof the nation. Extends prosperity and happiness in every direction. A pernicious tariff Deprives a large poi-tion of the in- dustry, capita], talent, and enterprize of tlie citizens of employment. Drains away the circulating medium, and exliausts the national resources. Spreads misery and distress througli the country, as we find by dear bought experience. If the tariff in question be tried by this standard, which, I trust, will be found a correct one, and by its results, I shall be exonerated from censure. It was extremely simple. It enume- rated about thirty manufactured articles, subject to seven and a half and ten per cent, duty — Coaches, chaises, &c. to fifteen — and about eight or ten to specific duties. All the remainder were thrown together, as non-enumerated, and subject to five per cent.!! Its protection of agriculture is reserved as the subject of another chapter. 278 Blank books. Paper, Paper hangings Cabinet wares. Buttons, Saddles, Tanned leather, Anchors, Wrought iron. Gloves, Millenery, THE NEW OLIVE BRANCH. At 7^ per cent. Tin and pewter warej Canes, Whips, Ready made clothing. Brushes, Gold, silver, and plated ware. Jewelry, ^Paste work. Manufactures of leather. Hats. At to per cent. Looking glasses. Window and other glass. Gunpowder, China, stone, and earthen ware. Buckles, Gold and silver laeo^ Gold and silver leaf. Paints. At 15 per cent. Goaehes, chariottfj chaises, solos, &c. Subject to specific duties. Boots, per pair, - Leather shoes. Silk shoes or slippers, - Cables, per cwt. - Tarred cordage, do. Unwrought steel, per lb. Cents. 50 7 10 75 75 56 Untarred cordage and yam, per cwt Twine or pack thread, per cwt. Wool and cotton cards, per dozen, . - - . Cents. 90 200 50 Non-enumerated articles^ subject to 5 percent. Bricks, Brass in sheets. Brazing copper. Combs, Clocks, Copper bottoms, Hah' powder, Inkpowder, Linens and other manvfactures ofjlaz Maps and charts, Paints, Printed books. Paintings, Silks, Slates, Starch, SeaUng wax. Worsted shoes. Brass manufactiu'es., China ware. Cannon, Cutlery, Cotton goods of all kinds. Fire arms. Gilt wares. Hempen cloth. Iron mamifactures, Japanned WM-es, Lead manufactm-es, Muskets, Printing types. Pottery, Pins, Steel manufactures. Stone ware. Side arms. Sail cloth. Tin wares. Wood manufactures, Woollen goods of every kind f ! &c. &c THE NEW OLIVE BRANCH. 279 In order to form a correct estimate of the effect of those du- ties as protection, it is necessary to take a view of the situation of this country and of those with which our citizens were to com- pete — which were principally, Great Britain, France, Germany, and the East Indies. The united states had recently emerged from a desolating war of seven years duration : and a peace of six years had been as destructive to their resources. Their manufacturers were pos- sessed of slender capitals, and as slender credit. Workmen were inexperienced — and wages high. All the expenses, moreover, of incipient undertakings were to be encountered. The chief counterbalance for all these disadvantages, was the freight and commission on the rival articles. Great Britain possessed every possible advantage in the conflict. Her manufacturers had the secure possession of their domestic market — and had only to send their surplus productions to this country — their machinery was excellent — they had drawbacks, in general equal to, and often greater than, the expenses of trans- portation — skilful workmen — and wages comparatively low — Her merchants were possessed of immense capitals, and gave most liberal credits. The cheapness of living and labour in France, Germany, and more particularly in the East Indies, afforded the people of those countries advantages over our manufacturers, only inferior to those enjoyed by Great Britain. Under these circumstances, I trust it will be admitted by eve- ry man of candour that it would be a mere mockery and insult to common sense, to pretend that live per cent., which, as ap- pears above, was the duty on seven-eighths of all the manufac- tured articles imported into this country, was imposed with a view to protection. Revenue alone was the object. Having to struggle with such a lamentably impolitic system, it is wonderful that our manufactures made any progress. It re- flects great credit on our citizens, that they were able to emerge from such an overwhelming mass of difficulties, as they had to encounter. While the grand leading manufactures of cotton, wool, iron, steel, lead, flax, and pottery, were thus subject to only five per cent, duty, lest smuggling should be encouraged, it may afford some gratification to curiosity to exhibit a statement of the very high duties on tea, coffee, rum. Sec. which were wholly unres- trained by any fear of smuggling. 280 THE NEW OLIVE BRANCH. 1789. Souchong, per lb. - Hyson, do. - - Bohea, do. - - Madeira, per gallon, - Jamaica rum, do. - Coffee, per lb. - - - Sugar, do. - - - Salt, per bushel, - - Price. Duty. Per cent. 39 10 25 49 20 40 15 6 40 100 18 18 40 10 25 12* n 20 5 H 30 12 6 50 Thus a yard of broad cloth or muslin, value four dollars, paid no more duty than a pound of hyson tea, value 49 cents ! The amount of goods subject to ad valorem duties, imported in 1789, 1790, and 1791, was as follows — Per cent. 1789. 1790. 1791. 5 n 10 15 §7,136,578 520,182 305,248 5 2,700 §14,605,713 1,067,143 699,14? 4,876 §11,036,477 7,708,337 1,114,463 314,206 5,654 §7,969,731 §16,376,881 §19,179,137* The duties on the above were about 2,600,000 dollars : and the whole amount of the impost for those three years, was 6,494,225 dollars. f The residue, about 3,900,000 dollars, was collected principal- ly from teas, wines, sugar, salt, spirits, spices, and coffee ! This completely justifies the character of the tariff, that as large a por- tion as possible of the impost was levied on articles not interfer- ing with national industry ; and that the duties on manufactur- ed merchandize were as light as the exigencies of the govern- ment would admit. The manufacturers at this period, as they have done so often since, besought the protection and threw themselves on the lib- erality of congress. On the eleventh of April, 1789, Samuel Smith, Esq. of Maryland, presented to congress a memorial from the manufacturers of Baltimore, stating — " That since the close of the late war, and the completion of " the revolution, they have observed with serious regret theman- *' ulacturing and trading interest of the country rapidly declining, " and the attempts of the state legislatures to remedy the evil, " failing of their object ; that in the present melancholy state of " our country, the number of poor increasing for want of em- " ployment, foreign debts accumulating, houses and lands depre- " dating in value, and trade and manufactures languishing and ■ Seybert, 158. t Idem, 395- THE NEW OLIVE BRANCH, 281 '* expiring ; they look up to the supreme legislature of the united " states, as the guardians of the whole empire, and from their " united wisdom and patriotism, and ardent love of their country, " expect to derive that aid and assistance, which alone can dissi- " pate their just apprehensions and animate them with hopes of *' success in future ; by imposing on all Joretgn articles which can **■ be made in America^ such duties as will give a just and decided *'^ preference to their labours ; discountenancing that trade which *' tends so materially to injure them and impoverish their coun- " try : measures which in their consequences may contribute to " the discharge of the national debt, and the due support of gov- *' ernment; that they have annexed a list of such articles as are, *' or can be manufactured amongst them, and humbly trust in the " wisdom of the legislature to grant them, in common with oth- " er mechanics and manufacturers of the united states, that relief *' that may appear proper.''* This application met with the same fate, as more recent ones have experienced from the successors of that congress. It would require a long chapter to develope the utter impolicy of this tariff, and its inauspicious effects on the industry and hap- piness of a large portion of our citizens, and on the national prosperity. My limits forbid me to display the whole of its de- formity. I annex one further view of it : In 1793, the amount of merchandize imported at 1h and 8 per cent, was about - - Sl5,328,000f On which the net duty was about - - gl, 200,000 This included all articles of clothing, whether cotton, woollen, or silk, (except India goods, subject to twelve and a half per cent.) The net duty on coffee for the same year was - Sl,226,724| Being more than on the whole of the clothing of the nation. Let us examine how this might have been arranged for the promotion of the prosperity of the country. Suppose that the duty on coffee had been reduced so as to raise only v - - ^700,000 * Debates of Congress, I. 29. f Seybert, 158. % Idem 438. 36 'ZB^- THE NEW OLIVE BRANCH, And that the duty on cotton and woollen goods had been raised to 20 per cent,, which might have reduced the importation to ^^8,500,000, and produced ^ , - - - 1,700,000 S2,4OO,0OO which is nearly the aggregate of the duties stated. Or, suppose that the duty on coffee had remained unaltered, and on cottons and woollens been increased to 25 per cent. — and that the importations had been diminished to 5,000,000 of dol- lars, the revenue would have been unimpaired. What an immense difference ! In one case, nearly 7,000,000 and in the other 10,000,000 of dollars saved to the country ! — Three or four hundred thousand people rendered happy ! A market for the farmers for probably 6,000,000 lbs. of wool ! and for the whole of the cotton then raised by our planters. But it is a humiliating truth, that very few of our statesmen have ever predicated their measures on national views. They are almost all sectional. They do not fall within Rousseau's description : — - ^' Jl belongs to the real statesman to elevate his views in the im- ^'- position of taxes ^ above the mere object of Ji nance ^ and to trans- '■^form them into useful regulations. '''* It is a melancholy operation for a real friend to the honour, power, resources, and happiness of the united states, to compare the tariff of 1789, and the principles on which it is predicated, with the preamble to a law of the state of Pennsylvania, passed anno 1785, four years before. The sound policy, the fostering care of its citizens, and of the resources of the state displayed in the latter, form a strong and decisive contrast with the utter im- policy of the tariff. Sect. i. ^' Whereas divers useful and beneficial arts and manufac- " tures h ive been gradually introduced into Pennsylvania, and the " same have at len£>;th risen to a very considerable extent and perfec- " tion, insomuch that during the late war between the united states of s' America and Great Britain^ when the imfiortation of Eurofiean guods *' was much interrufited, and often very difficult and ujicertain^ the ar- " tisans and mechanics of this scctte^ were able to supply in the hours ." of need, not only large quantities of weapons and other implements^ " but also ammu7iition and ctjthing, without which the war could not *•« have been carried on, whereby their oppressed country was greatly '< assisted a?2d relieved. Sect. ii. " And whereas, although the fabrics and manufactures " of Europe and other foreign parts, imported into thii. country in " times of peace, may be afforded at cheaper rates than they can be " made here^ yet good policy and a regard to the well being of divert THE NEW OLIVE BRANCH. S&S ^^ useful and industrious citizens, nvko are employed in the making of " like goodK in t/iis /itate, demand of un that modefatr duties be laid on " certain fahricfi and manufactures imported., which do most interfere '^^ nvith^and ivhich (if tio relief be giT en) will undermine and destroy " the useful manufactures of the like kind in this country : For this *' purpose," &c. &c. In December, 1791, Alexander Hamilton, who saw the errors of the tariff of the two preceding years, presented congress with his celebrated Report on Manufactures, the most perfect and lu- minous work ever published on the subject. It embraces all the great principles of the science of political economy, respecting that portion of the national industry, applied to manufactures, and is admirably calculated to advance the happiness of the peo- ple, and the wealth, power, and resources of nations. It more richly deserves the title of " The Wealth of Nations," than the celebrated work that bears the name. Tb.e Report swept away, by the strongest arguments, all the plausible objections on which the paralizing influence of the ta-^' riff rested for support. The lucid reasoning, as level to the most common capacity, as to the most profound statesman, is not enveloped in those abstractions and metaphysical subtleties which abound in most of the books on this subject, and which,- like the airy spectres of the dreamer, elude the grasp of the mind. I annex a few of those grand and sublime truths, with whicT> this work abounds, and which bear the strongest testimony against, and condemnation of, the course which this country has pursued. " The substitution of foreign for domestic manufactures, is a '-'■ transfer to foreign nations of the advantages of machinery in *' the modes in xvhich it is capable of being employed xvith most *' utility, and to the greatest extent ^^ How many millions of the wealth of this country have been thus " transferred to foreign nations" during the thirty years o^ our career ! How much of this wealth was used to scourge us at Washington, on the frontiers of Canada, and in the Chesa-' peake ! What a lamentable use we have made of the advantages which heaven has lavished on us ! " The establishment of manufactures is calculated not only to " increase the general stock of useful and produc'iive labour, buij " even to i>7iprove the state of agriculture in particidary^ What a lesson is here for the farmers and planters, who have' been unhappily excited to view with jealousy and hostility thos*: citizens who contribute so largely to their prosperity ' * Hamilton's Works, vol. I.- 284 THE NEW OLIVE BRANCH. " It is the interest of the community, rvtth a view to eventual "^ and permanent ecoiiomy^ to encourage the growth of manufac- " tures. In a national view, a temporary enhancement of price "must be always well compensated by a permanent reduction "of it."* " The trade of a country, which is both manufacturing and "agricultural, will be more lucrative and prosperous than that of " a country -which is merely agricultural.''''^ " The uniform appearance of an abundance of specie^ as the " concomitant of a flourishing state of mamfuctures^ and of the " reverse where they do not prevail, afford a strong presumption " of their favourable operation upon the wealth of a country."* *■*■ Not only the zvealth^ but the indepew.ence and security of a " country^ appear to be materially connected -with the prosperity " of manufactures. Every nation, with a view to these great " objects, ought to endeavour to possess within itself all the es- " sentials of national supply. These comprise the means of sub- " sistence, habitation, clothing, and defence."* " Considering a monopoly of the domestic market to its own " manufactures as the reigning policy of manufacturing nations, <' a similar policy on the part of the united states., in every proper " instance, is dictated, it might almost be said by the principles " of distributive justice — certainly by the duty of securing to their '■^ own citizens a reciprocity of advantages.''''* Mr. Hamilton, however, displayed an extreme degree of in- consistency. Notwithstanding the conclusive and irresistible arguments of his report, in favour of a decided protection of manufactures, and notwithstanding the failure of many promis- ing efforts at their establishment, in consequence of the deluge of goods poured into the market, instead of recommending an adequate enhancement of duties to supply some deficiency of revenue in 1790, he submitted a plan for an excise on spirituous liquors, which was one of the most universally odious and un- popular measures that could be devised. It excited the western insurrection ; thereby tarnished the character of the country ; and jeopardized the government in its infancy. However strong the arguments may be in favour of an excise on spirits, in a moral point of view, it was, under existing cir- cumstances, extremely impolitic. For the paltry amount raised from it for a considerable time after its adoption, it was not worth while to incur the disaffection of the citizens. The re- ceipts for the first four years were — * Hamilton's Works, Vol. I. THE NEW OLIVE BRANCH^. 285 In 1792 - - - - . _ S 208,942 1793 337,705 1794 274,089 1795 337,755 Four years S 1,158,491* Average S289,622 What a miserable sum as a set-ofF against the oppression and vexation of an excise — and the insurrection it excited ! How incalculably sounder policy it would have been, to have increas- ed the duties on manufactured articles, which would not only have answered the purpose of meeting the additional demands of the treasury, and given a spring to the industry of our citi- zens ; but made an important addition to the wealth, power and resources of the nation ! The importations subject to five and seven and a half per cent, duty — In 1792 amounted to ... - g 16,22 l,000f 1793, at 72 and 8 14,966,000 1794, at 7i and 10 17,700,000 1795, at 10 16,447,000 Four years, $ 65,334,000 Two per cent, on this sum would have been $ 1,306,620 Annual average - - _ . _ g 326,655 which exceeds the net revenue arising from the excise, and with scarcely a dollar additional expense in the collection. A variety of circumstances combined to rescue the united states from the ruinous consequences that would otherwise have naturally flowed from the impolicy of the tarifFs-of 1789,1790 and 1804 ; of which, as I have already stated, the obvious ten- dency was to afford the manufacturing nations of Europe, nearly all the advantages they could have derived from this countiy in its colonial state. The provision in 1 790, for funding the debt of the united states, threw into circulation an immense capital, which gave life and activity to business. The establishment, about the same * Seybert, 477. f Idem 159, 286 THfi NEW OLIVE BRANCH. time, of the bank of the united states, afforded additional facili- ties to trade and commerce. And the wars of the French re- volution opened a market for the productions of our agriculture, in many instances at most exorbitant prices ; for instance, occa- sionally from fifteen to twenty dollars per barrel for flour in thc West Indies, Spain and Portugal, and other articles in propor- tion. We were thus enabled to pay for the extravagant quanti- ties of manufactures which we consumed, and with which we could and ought to have supplied ourselves. The dreadful scenes in St. Domingo brought immense wealth into this country with the emigrants who purchased safety by flight from their paternal estates and their native land. For a considerable time, moreover, we were almost the sole carriers of the colonial produce of the enemies of Great Britain, as her fleets were in full possession of the seas, and there was no safety for the vessels of those powers in hostility with her. But it was obvious that this system rested the prosperity of the nation on the sandy foundation of the wars, desolation and mise- ry of our fellow men. And as it was not probable that they would continue to cut each other's throats to promotes our wel- fare, a close of this dazzling scene was to be expected, for which sound policy required provision to be made. But this duty was totally neglected. We proceeded as if this state of aflPairs were to last for ever. At length we were abruptly cut off from the markets of Europe, and then a new order of things arose, to dis- pel the lamentable delusion. CHAPTER IV. Memorials to congress. Deceptions report. List of Ex port fi. Tariff f i%04>. Wonderful omission. Immense importations of cotton and Tvoollen goods. Exportations of cotton. In the years 1802, 3, and 4, memorials were presented to con- gress from almost every description of manufacturers, praying for further protection. In the two first years they were treated with utter slight, and nothing was done whatever. In 1 804, the committee on commerce and manufactures made a very superficial report, from which I submit the following ex- tract, as a specimen of the sagacity of its authors. " There may be some danger in refusing to admit the manu- *' factures of foreign countries ; for by the adoption of such a " measure, we should have no market abroad, and industry '^ would lose one of its chief incentives at home." THE NEW OLIVE BRANCH. 287 This paragraph is superlatively absurd, and indeed more than absurd : it is wicked. In order to defeat the object of the me- morialists, it assumes for them requisitions which they did not contemplate, and which of course their memorials did not war- rant. No sound man in the united states ever contemplated the total " exclusion of foreign mauiifitctu7-esy It was merely re- quested that the memorialists should not themselves be " exclu- ded'''' from the domestic market bv foreign rivals — and that the industry of our citizens should be so far protected, that they might be enabled to supply a portion of the thirty millions of dollars, principally of clothing, imported that year. But admitting for a moment, for the sake of argument, that foreign manufactures had been excluded, who could persuade himself, that we should therefore " have no market abroad for our produce V War at that time raged in almost every part of Europe, and the West Indies : and those who purchased our pro- duce, had at least as powerful reasons to purchase as we had to sell. The inhabitants of an island in danger of starvation would suffer more from being deprived of supplies, than the producers by the privation of a market. To evince the futility of the ground assumed in the report, I annex a list of some of the great leading articles exported in that year : — Flour Indian corn Beef Indian meal Hams Butter - - - Cheese Lard - . - Candles Cotton Tar - . - Turpentine Staves and heading Boards, plank and scantling- barrels 810,000 bushels 1,944,873 barrels 134,896 barrels 111,327 pounds 1,904,284 pounds 2,476,550 pounds 1,299,872 pounds 2,565,719 pounds 2,239,356 pounds 35,034,175 barrels 58,181 barrels 77,827 feet 34,614,000 feet 76,000,rX)0* These, gentle reader, are the kinds of produce, which the fra- mers of this very profound report were fearful "• would not have a market," if " foreign merchandize was excluded." Such are the displays of wisdom and political economy made to the legislature of " the most enlightened nation in the world." This subject deserves to be further analyzed. To reduce it * Seybert, 110. 288 THE NEW OLIVE BRANCH. to plain English, it means, that, if the united states laid heavy duties, say 10, 15, 20 or 25 per cent, on silks, sattins, shawls, broadcloths, linens, &c. or prohibited East India cotton goods, the people of the West Indies would refuse to purchase oar lum- ber — the Manchester manufacturers our cotton — and the gov- ernments of Spain and Portugal, our flour, Indian meal, &c. &c. Such views of political economy cannot fail to excite a high de- gree of astonishment at their absurdity. In the year 1 804, the demands of the treasury had greatly in- creased by an augmentation of expenditure, and by the S> 5,000,- 000 of debt funded for the purchase of Louisiana. This requir- ed an incrr-ase of duties. But the same impolicy and neglect of affording adequate protection to the productive industry of the country that prevailed in the former tariffs, appear in that of this vear. The old system was continued, of raising as large a portion as possible of the impost on articles not interfering with our man- ufactures, and laying duties comparatively light on manufac- tures. Accordingly the duties on teas, wines, coffee, sugar, &c. were raised with an intrepidity that bid defiance to the fear of smuggling* 1804. Cost. Cents. Duty. Cents. Per cent. Bohea tea, perlb. ... 14 12 85 Souchong' do. - - - 41 18 44 Hyson do. ... 56 32 57 Hvsonskin do. ... 24 20 83 Imperial do. ... 75 32 40 Lisbon wine per gallon - 80 30 37^ London market Madeira, do. 160 58 36 Cofiee, per lb, ... 15 5 33 While these articles were dutied thus high, cotton and wool- len goods, which formed the great mass of the clothing of the country, were subject to only fifteen per cent., which in the im- proved state of the machinery of Great Britain, and, so far as respects cotton, the low price of labour in the East Indies, was so wholly inadequate for protection, that very few attempts were made to establish them on an extensive scale, and thus the nation was drained of immense sums, for articles of which it could have supplied a superabundance. It is a remarkable and most extraordinary fact, and scarce- Iv credible, that wooiltn goods were never mentioned in the ta- rj/, before 1816, when the government had been in opera- tion 27 years ! They were passed over, and fell within the class of non-enumerated articles. It is impossible to reflect or THE NEW OLIVE BRANCH. 289 this fact, without astonishment, and a conviction that there ne- ver was adequate attention bestowed on the concoction of the ta- riff, which, while it was silent respecting those important articles, descended to the enumeration of artificial flowers, cosmetics, bricks and tiles, dentifrice, dates, dolls, essences, fans, fringes, glue, tassels and trimmings, limes and lemons, mittens, gloves, powders, pastes, washes, tinctures, plums, prunes, toys, wafers, &c. &c. As few persons are aware of the extravagant extent of the im- portations of clothing, I annex the amount for five years, of ar- ticles subject to 15 per cent, duty, of which about nine-tenths were cotton and woollen goods. 1804 . . . . . ^30,285,267 1805 ..... 37,137,598 1806 • . . . . 43,115,367 1807 . . . . . 46,031,742 1808 ..... 23,780,758 Sl80,350,732* The re-exportation of articles of the same description for these years, was — 1804 . . . . S 000,000 1805 . . . 1,587,801 1806 .... 2,075.601 1807 . . . 2,iy7,.383 1808 . . . . 755,085 6,615,8701 Balance .... 173,737,862 Deduct for sundries, say ten per cent. . 17,373,786 Cotton and woollen goods consumed in five years, . . . , gl 56,364,076 Had the duty been twenty-five per cent., and the imports 100,000,000, the revenue would have gained, and there would have been an immense saving to the nation of above 50,000,000 of dollars in four years ! When will statesmen learn the grand secret of " transforming taxes into useful regulations?'''^ * Seybert, 164, f Idem, page 222. 37 2§0 "THE NEW OLIVE BRANCH. During these five years, we exported of raw cotton— 1804 lbs. 35,034,175 1805 - 38,390,087 1806 35,657,465 1807 - - - - . - . 63,944,459 1808 - - 10,630,445 lbs. 183,656,631 Although we supplied Great Britain with more than a third of the cotton she used, so little protection was afforded to the manufacture of the article here, that in the year 1805, our con- sumption was only 1000 bags ; whereas, had the fostering care of the government been extended to it, we might have used 100,000. And this all-important manufacture, for which this country is so peculiarly fitted by its capacity of producing the raw material to any extent ; its boundless water power ; its ad- mirable machinery ; and the skill of its citizens, never took root here until the non-intercourse and other restrictive measures, affording our citizens a fair chance in their own market, they were encouraged to turn their attention, and devote their talents and capital to this grand object. In five years, that is, in 1810, merely through this encouragement, the consumption increased tenfold, to 10,000 bales, or 3.000,000 lbs. In five more, in conse- quence of the war, it rose to 90,00 • bales, or 27,000,000 lbs. This affords a clear and decisive proof that nothing but a sound policy was necessary to have brought it early to perfect ma- turity. There is not perhaps in history a greater instance of utter impolicy and disregard of the maxims of all profound statesmen, or of the solid and substantial interests of a nation, than this most lamentable fact exhibits. An inexhaustible source of na- tional wealth, power, and resources, and of individual happiness, was bestowed on us by heaven, and prodigally lavished away, in favour of foreign nations, who made use of the wealth thus absurdly bestowed, to jeopardize our independence ; — under the absurd idea, that as we had so many millions of acres of back lands uncultivated, we ought not to encourage manufac- tures ! ! Ineffable delusion ! As if the thousands of men brought up to cotton weaving, who, under proper encouragement, would have migrated to this country, could be immediately transform- ed into back country farmers, and induced to encounter all the horrors of clearing the wilderness ! And as if the vast num- bers of old men, of women, and children, who might be most advantageously employed for themselves and for the nation, in THE NEW OLIVE BRANCH. 291 this branch, were in any degree calculated for a country life, oven der its most inviting form! CHAPTER V. Declaration of war. Blankets for Indians, Disgraceful situa^ tion of the united states. Governor Gerry. SnJ^e rings of the army. Rapid progress of national industry. On the 18th of June, 1812, war was declared against Great Britain. This event placed the ruinous and deplorable policy of our government, on the subject of its manufactures, in a gla- ring point of light. With raw materials in abundance, skill, en- terprize, industry, water power, and capital to the utmost ex- tent, to secure a full supply for nearly all our wants, we had, in defiance of the soundest maxims of policy, absurdly depended on foreign nations for a great variety of necessary articles, and even^ Oh., shame !for our clothings than -which the mind of man caJi hard- ly conceive of more utter want of policy. In consequence of this miserable system, at the commence- ment of the war, the nation suffered the disgrace of a regular proposition being offered to congress by the secretary at war, to suspend the non-importation act for the purpose of importing a supply cf five or six thousand blankets for the Indians.^ for whom the department had not been able to make provision ! and" who had of course become clamorous at the disappointment ! This melancholy tale will hardly find credence. It is, nevertheless, sacredly true ; and if dear-bought experience were of any avail in the regulation of the affairs of nations, this simple fact would be an invaluable lesson to our statesmen, to warn them against the rock of depending on foreign nations for supplies of clothing and other necessary articles while they have the raw materials and talents provided at home. But, alas ! to the incalculable injury of the nation, this admonitary lesson was wholly disre- garded in 1816, as will appear in the sequel. The good old governor of Massachusetts, Elbridge Gerry, felt deep distress at the bitter draught of the dregs of the cha- lice of humiliation swallowed at this crisis by the government of the united states, and brought the affair before the legislature of that state. " It being officially announced, that the Indians complain they " cannot receive the usual supplies of goods, by reason of the " non-importation act, and that they were not to be purchased " within the united states : 292 THE NEW OLIVE BRANCH. " I submit to your consideration, whether it is not incumbent " on this state, to use the means in its power for enabling the " national government to rise superior to such a humiliating cir^ " cumstance ! In the year I7f5, when our war with Great Bri- *' tain commenced, and when, immediately preceding it, a non- " importation act had been strictly carried into effect, the state *'of Massachusetts apportioned on their towns, respectively, to *' be manufactured by them, articles of clothing wanted for their *' proportion of the army, which besieged Boston; fixed the pri- " ces and qualities of those articles ; and they were duly supplied " within a short period. *' Thus, before we had arrived at the threshold of indepen- " dence, and when we were in an exhausted state, by the antece- *' dent, voluntary, and patriotic sacrifice of our commerce, he- " tiveen thirteen and fourteen thousand cloth coats were vianufac- '"'•tured^ made and delivered into our magazine^ -within a few *' months from the date of the resolve which first communicated *' the requisition. " Thirty six years have since elapsed, during twentj^-nine of " which we have enjoyed peace and prosperity, and have mcreas- " ed in numbers, manufactures, wealth and resources, beyond " the most sanguine expectations. " All branches of this government have declared their opinion, *f and I conceive on the most solid principle, that as a nation we *' are independent of any other, for the necessaries, conveniences " and for many of the luxuries of life. " -Let us not, then, at this critical period, admit any obstruc- *' tion which we have power to remove, to discourage or re- " tard the national exertions for asserting and maintaining our " rights ; and above all, let us convince Great Britain that we *' can and will be independent of her for every article of *' commerce, whilst she continues to be the ostensible friend, " but the implacable foe of our prosperity, government, union, " and independence." What a melancholy difference between the two epochs, 1 775, and 1812 ! Strength and vigour in youth — feebleness and de- cay in manhood ! What lamentable havoc of national resources in the interim ! Mr. Gerry says, " as a nation we are independent of every oth- er.'''* This is a most egregious error. " As a tiation" extent of resources considered, there was not then, nor is there now, a more dependent people, perhaps, in the world. In our towns and cities, one-half of our population, males and females, are covered with the fabrics and in the fashions of foreign nations. He. should have said, "rye may and ought to be independent.^'' — Two or three small words make an immense difference. THE NEW OLIVE BRANCH. 293 If any thing could add to the mortification and regret which this circumstance must excite, it is, that the quantity of wool sheared in 1810 was estimated at 13 or 14,000,000 lbs., and in 1812, at 20 or 22,000,000 ;* and that various promising attempts to establish the woollen manufacture, had been made at different periods, and in various parts of the union, during the preceding y6ars, which, for want of protec-tion, had failed of success. Next to the waste of the immense advantages we possess for the manufacture of cotton, is to be lamented the impolitic and irreparable destruction of merino sheep, of which we had to the value of about one million of dollars, which government, by an increase of duty on woollens, might have easily preserved. The contraist between our abandonment of them, and the great pains taken, and expense incurred, by different nations to possess themselves of this treasure, is strong and striking. Hundreds of our ill-fated soldiers, it is said, perished for want of comfortable clothing in the early part of the war, when expos- ed to the inhospitable climate of Canada. f The war found us destitute of the means of supplying our- selves, not merely with blankets for our soldiers, but a vast va- riety of other articles necessary for our ease and comfort, of which the prices were accordingly raised extravagantly by the importers. Our citizens, and among them numbers of our commercial men, entered on the business of manufactui-es with great energy and enterprize ; invested in them many millions of capital ; and having, during the thirty months in which the war continued, the domestic market secured to them, they succeeded wonderfully. Never was there a prouder display of the (I had almost said) omnipotence of industry, than was afforded on this occasion. It furnishes an eternal lesson to statesmen. Our citizens exhibit- ed a spectacle perhaps without precedent. Unaided hy the ex- penditure of a single dollar by our government^ they attained in two or three years, a degree of maturity in manufactures, which required centuries in England, France, Prussia, &c., and cost their monarchs enormous sums in the shape of bounties, premi- ums, drawbacks, with the fostering aid of privileges, and immu- nities bestowed on the undertakers. The supply became com- mensurate with the demand ; and full confidence was entertained that the government and nation, to whose aid they came forward in time of need, would not abandon them to destruction, after the purposes of the moment were answered. Fatal delusion ! * Tench Coxe's Tables, preface, pag'e xiii. •J- 1 have heard a stor}', which I have reason to believe to be tnie, but for which" however, I do not vouch, that the capture of Amelia Island, by Governor Mitchell, was ordered by government with a view to provide blankets for our suffering soldiers. 294 THE NEW OLIVE BRANCH. Our exports for 1813 and 1814, were only about 8 1,000,000 ot dollars, or 15,5U0,000 per annum. Hostile fleets and armies desolated those parts of the country to wiiich they had access.— Yet the nation made rapid strides in prosperity by the creative powers of industry. Every man was employed, and every man fully recompensed for his labours. It may, however, be suppos- ed that the farmers suffered heavily by the exclusion of their pro- ductions from foreign markets. The fact is otherwise. I state the prices of three articles, flour, beef, and hemp, in the Phila- delphia market, in proof of this assertion. Other articles com- manded proportionable prices. Flour Beef Hemp per barrel. per barrel. per ton. 1813. Aug-. 23 - - - gS 25 S15 50 S210 Nov. 22 - - - 10 00 15 5^ 210 1814. Jan. 31 - - - 8 00 13 50 275 July 4* - , - 6 86 17 00 250 Dec. 5 - - - 8 ^^7 19 00 250 What a contrast at present ! In 1816 1817 1818 We have exported- Average ^64,784,896 68,338,069 73,854,437 g206,997,402 ^68,999,280 tfift^^ That is, above ^ettr Tiundred per cent, more than in 1813 and 1814 — and a premature decay has nevertheless been rapidly gaining ground on the nation by the prostration of its industry ! What an important volume of political economy ! How much more instructive than Condorcet, Smith, Say, Ricardo, and the whole school of economists of this class ! I am aware that from local circumstances, cotton and some other articles were at reduced prices at the places of production during the war, from the difficulty and expense of transportation. The fall of cotton was a natural consequence of the impolicy of the planters in not having previously secured themselves a do- mestic market. The following tables exhibit a statement of the great advance- ment made ; and prove that our citizens do not require half the patronage of government, which is afforded by England, France, Austria and Russia, to enable them to enter into competition with the whole world. * Specie payments were continued till August 1814. THE NEW OLIVE BRANCH. 995 State of the cotton manufacture within thirty miles of Providence, it". /. in 1815, extracted from a memorial to congress. " Cotton manufactories .... 140 " Containing in actual operation - spindles 130,' 00 " Using annually . . bales of cotton 29,000 *' Producing yards of the kinds of cotton goods usually made .... 27,840,000 ** The weaving of which, at eight cents per yard, amounts to ... . §2,227,200 " Total value of the cloth . . . g6,00 ),u00 " Persons steadily employed . . . 26,000 State of the cotton manvfacture throughout the united states in 18l5,from a report of the Committee of Commerce and Manu- factures, "Capital . . . . • g4O,O0O,00© " Males employed, from the age of seventeen and upwards ..... 10,000 *' Women and female children . . 66,000 " Boys, under seventeen years of age . . 24,000 •* Wages of one hundred thousand persons, aver- aging $150 each . . . g 15,000,000 *' Cotton wool manufactured, ninety thousand bales, amounting to lbs. . . 27,000,000 " Number of yards of cotton of various kinds, 81,000,000 " Cost, per yard, averaging 30 cents . g24,30O,00O State of the woollen manufacture throughout the united states, in 1815, from the same. " Amount of capital supposed to be invested in buildings, machinery, &c. . . §12,000,000 " Value of raw material consumed jS annually . . . 7,000,000 " Increase of value by manufac- turing . . . 12,000,000 Value of woollen goods manufactured annu- ally ..... §19,000,000 tt TVT u r 1 J r constantly . 50,000 Number of persons employed | ^..^gi^^/ny . 50,000 100,000 In the city and neighbourhood of Philadelphia, there were employed in 1815— 296 THE NEW OLIVE BRANCH. In the cotton branch _ - . - 2325 persons. In the woollen 1226 do. In iron castings - - - - -1152 do. In paper making _ - _ _ - 950 do. In smithery ------ 750 do. The value of the manufactures of the city of Pittsburg, which in 1815 employed 1960 persons, was 2,617,833 dollars. And every part of the country displayed a similar state of prosperity. How deplorable a contrast our present situation exhibits ! CHAPTER VI. State ef the country at the close of the war. Pernicious conse- quences to the manufacturers^ of the repeal of the double duties ^ and the enormous influx of foreign merchandize. Mr. Dallas'^ s tari£. Rates reduced ten^ twenty^ and thirty per cent. The war was closed under the most favourable auspices. The country was every where prosperous. Inestimable cotton and woollen manufacturing establishments, in which above 50,000,000 of dollars were invested, exclusive of a very great variety of other descriptions, were spread over the face of the land, and were diffusing happiness among thousands of indus- trious people. No man, woman, or child, able and willing to work, was unemployed. With almost every possible variety of soil and climate — and likewise with the three greatest staples in the world — cotton, wool, and iron — the first to an extent com- mensurate with our utmost wants, and a capacity to produce the other two to the same extent — a sound policy would have ren- dered us more independent probably of foreign supplies, for all the comforts of life, than any other nation whatever. Peace, nevertheless, was fraught with destruction to the hopes and happiness of a considerable portion of the manufacturers. The double duties had been imposed with a limitation to one year after the close of the war. And a tariff as a substitute was pre- pared by the secretary of the treasury, with duties fixed at the minimum rates which he thought calculated to afford pro- tection to our manufacturing establishments. On many articles these rates were insufficient. Yet had his tariff been adopted, it would probably have saved the country forty or fifty millions of dollars — and prevented a large portion of the deep distress that pervades the land, and which is driving legislative bodies THE NEW OLIVE BRANCH. 297" to the desperate measure of suspending the course of justice.* But a deep-rooted jealousy of manufacturers was entertained by many of the members of congress, on the ground of imputed extortion during the war.f The old hacknied themes of " tax- " ing the many for the benefit of the few" — the country not be- ing ripe for manufactures — wages being too high — the immen- sity of our back iands^ &c. &c- he. were still regarded as un- answerable argu:r.ents. In consequence of the combined ope- ration of these causes, the rates proposed by Mr. Dallas, were reduced on most of the leading articles ten, fifteen, and in some cases thirty per cent. Every per cent, reduced was regarded by many of the mem]>ers as so much clear gain to the country* Some of them appeared to consider manufacturers as a sort of common enemy,]: with whom no terms ought to be observed; and there was no small nuuiber who were disciples of colonel Taylor, of Caroline county, Va.|] who holds the broad, unquali- fied doctrine that every dollar paid as duty or bounty to encou- rage manufactures, is a dollar '' robbed out of the pockets of the " farmers and planters !" Wonderful statesman ! Profound policy ! How all the Sullys, and Colberts, and Frederics of Europe must ■•' hide their diminished heads" when their practice is put in contrast witli this grand system of political economy ! To convey a correct idea of the spirit that prevailed in that congress towards their manufacturing fellow citizens, I annex a * Measures of this description have been adopted, by five or six states. -[•The reader is earnestly I'equested to penise the 13th chapter of this smaU work, for a thorough examination of this senseless and unjust calumny. t Ex-Governor \\ right, of Maryland, was among the most violent of the mem- bers. His jealousy and hostility were without the least disguise, and were car- ried to an extent hardly credible. A motion for a reduction of the duty on cot- tons having failed, he attempted to have it re-considered — on the ground tliat some of the members who voted in tlie majoi'ity, were concerned in the cotton manufactui'e ! II Colonel Taylor is, I believe, a tobacco planter — and has never, in any of his plausible works, raised his voice against the extravagant duties on snuff' and manufactm-ed tobacco. On this tender topic he is silent as the gi-ave. Yet a ehapter on it would have come from him with great propriety. It is a subject with wliich he ought to be thoroughly acquainted. I venture to hint, that he might with great advantage read the instructive fable of the lawyer's goring bull, ■which, witli a suitable commentary on snufl" and tobacco duties, might be very well prefixed as part of the pi'ologomena to some of the amusing chapters of his Arator. It may not be amiss, liivewise, to whisper gently in his ear, that even to- bacco in the leaf is subject to fifteen per cent, which is exactly the same duty as that imposed on silks, linens, clocks, brazing copper, gold leaf, hair powder, printed books, ])i-ints, slates, starch, stuff and worsted shoes, seahng wax, thread stockings, &c. &c. Who, then, can reflect without astonishment, that this gen- tleman and Mr. Ganiett take a lead in the opposition to the protection of manu- factures, although the rude produce of their own state is protected by the same duty as the above finislied manufactures ! After this, wo may well ask, with amazement, "tvhat next ?" Be it what it mav, it cannot surprise us, 38 298 THE NEW OLIVE BRANCH. Statement of various articles, with the duties as reported by Mr Dallas, and as finally adopted : — ARTICLES. Mr. Dallas's Tariff adopted, proposed Tariff. Per cent. Blank books ...-----35 Bridles 35 Britss ware .--- ---22 Brushes - ..-.- -35 Cotton manufactures of all sorts - - - - 33 1-3 (Those below 25 cents per square yard, tobedutiedas at 25 cents.) Cotton stockings - - - - - - - 33 1-3 China ware - 30 Cabinet wai-e - 35 Carriages of all descriptions ... - 35 Canes - - .---.-35 Clothing, ready made 35 Cutlery - - 22 Cannon - - 22 Earthen ware - ------30 Glass ware - - -" ' ' ' ^^ Harness - - .-...- oS Iron ware - - -----22 Leatlierand all manufactures of leather - - - 35 Linens - - .-. --20 Manufactures of v/ood - - - - - 35 Needles -.- -- ---22 Porcelain .-- . --.-30 Parchment ... . . . . S5 Printed books .-- - ---35 Paper hangings - . . ... 35 Paper of every description - - . - . 35 Printing types - .... --35 Pins - .--...- 22 SUks - - - 20 Silk stockings - - . . - . . 20 Sattins 20 Stone ware ... .... 30 Saddles 35 Thread stockings ... .... 20 Vellum -- .-.-.-35 Walking sticks - - . . . - . 35 Whips ... ... . - 35 Woollen stockings . . - - . - 28 Woollen manufactures generally - - - 28 Boots, - - per pair 200 cts. Iron in bars and bolts, per cwt. - - - . . 75 Shoes and slippers of silk, per pair - - - - 40 Shoes of leather 30 Shoes for cliildren 20 Per cent. 30 30 20 30 25 20 20 30 30 30 30 20 20 20 20 30 20 30 15 30 20 20 30 15 30 30 20 20 15 15 15 20 30 15 30 30 30 20 25 150 cts. 45 30 25 15 The various reductions of two and three per cent, evince the huckstering spirit that prevailed, utterly unworthy of the legis- lature of a great nation. Mr* Dallas made a difference of five and one-thir-d per cent, between the two great articles, cottons and woollens, rating the former at thirty-three and a third, and THE 'new olive BRANCH. 299 the latter at twentj^-eight, in consequence of our possessing a boundless supply of the raw material of the former, whereas that of the latter was rather limited. After an ardent struggle, the duties were reduced, and both rated alike at twenty-five per cent. All the southern members voted for the reduction, ex- cept five, Messrs. Jackson, Marsh, and Newton from Virginia, and Messrs. Calhoun and Mayrant, from South Carolina, who enjoy the melancholv consolation of having endeavoured to stem the storm. The cotton planters who united in the vote for the reduction, have dearly expiated their error, in rendering their fortunes and the prosperity of their country dependent upon the contingencies of foreign markets, instead of securing a large and constantly-increasing market at home. This ought to be re- sounded in their ears. Rarely has there been much greater impo- licy — and rarely has impolicy been more severely and justly pun- ished. They fondly and absurdly thought, that thirty cents per lb. for cotton would last for ever. The committee of commerce and manufactures ; many of the most enlightened members of congress ; and the agents of the manufacturers, strongly remonstrated against the reduction of duty ; and, with a spirit of prophecy, predicted the fatal conse- quences, not merely to the manufacturers, but to the nation. But they might as well have attempted to arrest the cataracts of Niagara with a mound of sand. Prejudice was deep, inve- terate, and unassailable. It has never in times past had eyes or ears ; and, notwithstanding the elevation of character, and the superior illumination to which we fondly lay claim, we are not likely to offer to the admiring world an exception to the ge- neral rule. Of this unpalatable position our brief history, alas ! affords too many irrefragable proofs. CHAPTER VII. Rutn of the manufacturers and decay of their establishments. Pa- thetic and eloquent appeals to congress. Their contumelious and unfeeling neglect. Memorials neither read nor reported on. Revolting contrast between the fostering care bestowed by Russia on its manufacturers., and the unheeded stifferings of that class of citizetis in the united states. From year to year since that time, ruin spread among the man- ufacturers. A large portion of them have been reduced to bank- i-uptcy from ease and affluence. Many are now on the brink of it. Most of them had entered into the business during the war, under an impression, as I have already stated, that, there was a 300 THE NEW OLIVE BRANCH. sort of implied engagement on the part of the government, that, having been found so liseful in time of need, they would n t af- terwards be allowed to be crushed. To what extent there was any foundation for this idea, I am unable to decide. Suffice it to say, that all the calculations predicated on it were wholly and lamentably disappointed. The strong arm of government, which alone could save them from the overwhelming influx of foreign manufactures, by which they were destroyed, was not interposed in their behalf. Noble establishments, the pride and ornament of the country, which might have been rendered sources of in- calculable public and private wealth, and which Edward III. Henry IV. Frederick the Great, and Catharine II. would have saved at the expense of millions, if necessary, are mouldering to ruins. And, to crown the whole, millions of capital which had every claim to the protection of government, has become a dead -and heavy loss to the proprietors. At every stage of this lamentable progress, the devoted suf- ferers not only appealed to the justice, but threw themselves on themercyof their representatives. The utmost powers of elo- quence were exhausted in those appeals, some of which may be ranked among the proudest monuments of human talents. In the second session of the fourteenth congress, 1816-17, there were above forty memorials presented to the house of rep- resentatives from manufacturers in different parts of the united states, and some of them, particularly that from Pittsburg, fraught with tales of ruin and destruction, that would have soft- ened the heart of a Herod. Not one of them was ever read in the house! The Pittsburg memorial was, it is true, printed for the use of the members. But this measure produced no effect. The following is a list of the applications — No. Memorials. Subjects. 1 1816. Dec. 16 From New York Iron manufactures 2 16 New Jersey do. 3 20 New York Umbrellas 4 27 Massachusetts do. 5 30 New Jersey Iron manufactures, 6 1817, Jan. 6 New Jersey do. 7 8 New York do. 8 9 Philadelphia do. 9 10 Connecticut Iron manufactures. 10 10 New Jersey do. 11- 13 Pennsylvania do. 12 13 New Jersey do. 13 14 Boston do. 14 16 Kentucky Bar iron. THE NEW OLIVE BRANCH. 301 Vb. 1818. Memorials. Subject. 15 Jan. 20 Pennsylvania Bar iron. 16 22 Pennsylvania Iron manufactures. 17 27 New Jersey Bar iron 18 28 Pennsylvania Iron manufactures. 19 29 Berkshire, Manufactures generally. 20 29 New York do. 21 30 New Jersey Iron manufactures. 22 30 New York Manufactures generally. 23 30 Oneida county do. 24 31 New York do. 25 Feb. 1 Pennsylvania Iron manufactures. 26 3 New York do. 27 4 Pennsylvania do 28 4 New York, Manufactures generally. 29 4 New York do. ^0 6 Connecticut Iron manufactures. 3l 6 New York and Vermont, do, ^2 8 Pennsylvania do. ^3 11 New Jersey, Manufactures generally. ^4 11 New York Iron manufactures. ^5 13 Rhode Island Cotton and woollen. 36 13 Connecticut do. 37 17 Pittsburg, Manufactures generally. 38 20 Illinois Lead. 39 24 Baltimore, Manufactures generally. 40 26 Philadelphia, do. 41 28 Oneida do. 42 28 Berkshire do. No description could do justice to the force of some of these memorials. I shall therefore present a few short speci- mens of the facts and reasonings they placed before the eyes of congress, to enable the reader to form a correct estimate of the extremely culpable neglect of the voice of their constituents, dis- played by that body. The applications were as ineffectual as those of the congress of 1774, to the ministers of George III, and were treated with as little ceremony. Froyn a Philadelphia Memorial. " We regard 7vith the most serious concern the critical ana dan- '■^ gerous situation in which our mauiifactures are placed by " the recent and extravagant importations of rival articles ; which, " owing to the great surplus of them, and to the pressure for " money, are in many cases sold at such reduced prices, as to " render it impossible for our manufactures to compete with •' them. We believe that with the interests of the manufacturers 302 THE NEW OLIVE BRANCH. '' are connected the best interests of the nation — and that if the " manufactures of the country are deprived of that support from " the legislature of the united states, to which we think they are " fairly entitled, the evil will be felt not by us merely^ but by the ''^ "whole nation; as it -will produce the inevitable consequence of an *' unfavourable balance of trade^ whereby our country will he im- ^* poverished^^ and rendered tributary to foreign powers^ ivhose iU' "■ terests are in direct hostility with oursP From the Pittsburg and other Memorials. " The committee have found that the manufacture of cottons^ " "woollens^ flint glass, and the finer articles of iron^ has lately " '^u.ffered the most alarming depression. Some branches which " had been several years in operation, have been destroyed or " partially suspended ; and others, of a more recent growth, an- " nihilated before they were completely in operation. " The tide of importation has inundated our country withfo- " reign goods. Some of the most valuable and enter prizing citi- " zens have been subjected to enormous losses^ and others over- *' whelmed xvith bankruptcy and ruin. The pressure of war was " less fatal to the hopes of enterprize and industry.^ than a gene- " ral peace ^ -with the calamities arising from the present state of " our foreign trade. " It was confidently believed, that the destinies of the united " states would no longer depend on the jealousy and caprice of " foreign governments, and that our national freedom and wel- *' fare were fixed on the solid basis of our intrinsic means and " energies. But these were 'airy dreams.' A peace was con- " eluded with England, and in a few months we were prostrate " at her feet. The manufacturers appealed to the general go- " vernment for the adoption of measures that might enable them " to resist the torrent that was sweeping azvay the fruits of their " capital and industry. Their complaints were heard with a " concern which seemed a pledge for the return of better days. " The tariff of duties., established at the last session of congress^ " and the history of the present year^ xvill demonstrate the falsi- " ^y °f l^heir expectations . " England never suffered a foreign government., or a combina- " tion of foreign capitalists^ by glutting her own market., to crush " in the cradle^ any branch of her domestic industry. She never " regarded., with a cold indifference., the ruin of thousands of her " industrious people., by the competition of foreigners. The bare " avowal of such an attempt would have incurred the indignant '' resistance of the whole body of the nation, and met the frowns, * How fatally and literally has this prediction been realized! THE NEW OLIVE BRANCH. 303 " if not the instant vengeance of the government. The conse- " quences of this policy in England are well known ; her manu- " factures have become a source of wealth incalculable ; the " treasures of Spanish America are poured into her lap ; her *' commerce is spread over every ocean, and, with a population " comparatively small, she is the terror and the spoiler of Europe. " Take from England her manufactures, and the fountains of " her wealth would be broken up ; her pre-eminence among na- " tions would be lost forever. " For a speedy redress of such pressing evils, we look to the " government of the union. Will they uphold the sinking ma- " niifactures of the country^ or will they not"^ Are their late as- " surances of aid and protection forgotten with the crisis that " gave them birth ? Let them realize the hopes of the country, " and act with decision before it be too late. " In the united states we have the knowledge of the labour- " saving machinery, and the raw material and provisions cheap- " er than in Britain ; but the overgrown capital of the British ** manufacturer, and the dexterity acquired by long experience, " make a considerable time and heavy duties necessary for our " protection. — We have beaten England out of our market in " hats, shoes, boots, and all manufactures of leather : we are " very much her superior in shipbuilding ; these are all works " of the hands, where labour-saving machinery gives no aid ; " so that her superiority over us in manufuctzires, consists more in " the excellence andnicety of the labour-saving- machinery^ than in " the wages of labour. With all their jealousy and restrictions upon " the emigrations of workmen, the distresses and misfortunes of " England will, by due encouragement, send much of her skill " and knowledge to our shores ; let us be ready to take full be- " nefit of such events, as England herself did, when despotic " laws in Germany, and other parts of Europe, drove their ma- " nufacturers into Britain, which laid the foundation of her pre- ^' sent eminence, " That the cotton trade and manufacture is a concern of vast " importance, and even of leading interest to the country, is a " truth, your memorialists conceive, too palpable, to be denied or " doubted. Were not our own constant observation and daily ex- " perience sufficient to establish it, the prodigious exertions of our " ever-vigilant and indefatigable rival, directed against this par- " ticular interest, would place the matter beyond a question. *' For where a judicious and enterprizing opponent (as England " undoubtedly is in this respect) directs her strongest engine of " hostility, we have reason to conclude there lies our vital and " most important concern. This consideration is coming home " to us with more and more force ; and the cotton planter^ as well "as the manufacturer^must have^ before this time., discovered the 304 THE NEW OLIVE RRANCH* " alarming fact ^ that our great rival has become possessed of both " our plants and seeds of cotton^ which she is employing all her " vast means to propagate in the East Indies and other British *■'■ possessions^ zvith an energy and success rvhich threaten the *' most alarming consequences. When your memorialists consi- " der that the article thus jeopardized is the great staple of the " country, they cannot but hope the people and their representa- " tives will be generally convinced, that it is not the interest of " individuals alone that is at stake, but that of the whole com- *' munity. " An appeal is made to the equity^ to the patriotism of the *' southern statesman : his aid and co-operation are invoked for the *' relief of the suffering mamfacturers of the northern and middle *' states, " In the interior of the united states.^ few articles can be raised " which will bear a distant transportation ; products much more *' valuable when the grower and consumer are near each other ^ *' are therefore excluded from cultivation. A dependence on fo- " reign markets in the most prosperous times necessarily restricts " the labours of agriculture to a very few objects ; a careless., de- *' crepit^ and unproptable cultivation is the known result. " The propriety of these observations may, in some degree^ " be illustrated by the difference in value between the land in " the vicinity of a large town, and at a greater distance from it. " The labour which produces the greatest quantity of subsistence " is bestowed on the culture of articles too cumbrous for trans- " portation ; and in general a farm which will subsist fifty per- " sons in its vicinity, would not subsist the fifth of that number " three hundred miles off. If the value of land be so much en- " hanced by the proximity of a market., a7id so rapidly diminished " by the distance of transportation^ the introduction of manufac- " tories., and the creation of an interior market ^ ought to be re- ^'- garded as peculiarly auspicious to the interest of agriculturists, '' Confning our views to the western country., we might empha-' " tically asky with what exportable commodities shall we restore '* the balance of trade., noxv fast accumulating against us P How " arrest the incessant drain of our capital ? Our manufactures *' are perishing around us., and already millions have escaped., ne- " ver to returnP It will remain an eternal blot on the escutcheon of the four- teenth congress, that these pathetic addresses received no more attention than if they had been from a party of field negroes to a marble-hearted overseer. The Oneida Memorial stated., " That the above county contains a greater number of manu* " facturing establishments, of cotton and woollen, than any THE'ilEW OLIVE BRANCH. 305 ** county in the state, there being invested in said establishments " at least 600,(!0() dollars. " That although the utmost efforts have been made by the pro- *' prietors to sustain those establishments, their eflForts have pro- " ved fruitless, and more than three-lourths of the factories re- " main necessarily closed, some of the proprietors being wholly " ruined, and others struggling under the greatest embarrass- " ment. " In this alarming situation, we beg leave to make a last ap- " peal to the congress of the united states. While we make this " appeal, our present and extensive embarrassments in most of " the great departments of industry, as well as the peculiar dif- *' ficulty in affording immediate relief to manufacturers, are ful- *' ly seen and appreciated. Yet your petitioners cannot believe ** that the legislature of the unioii xvill remain an indifferent spec- *' tator of the xvidespread ruin of their felloxv citizens, and look " o;z, an^ see a great branch of industry, of the utmost impor- *' tance iti every coinmunity, prostrated under circumstances fatal ** to all future attempts at revival, without a further effort for re^ *' Inf. We would not magnify the subject, which we now pre- *' sent to congress, beyond its just merits, when we state it to *' be one of the utmost importance to the future interests and *' welfare of the united stated. " It is objected that the entire industry of the country may " be most profitably exerted in clearing and cultivating our ex- '' tended vacant lands. But xvhat does it avail the farmer^ when " neither in the nation from xvhich he purchases his goods, or *' elsewhere^ can he find a market for his abundant crops ? Be-' *' sides, the diversion of labour from agriculture to manufac- " tures, is scarcely perceptible. Five or six adults, with the aid " of children, will manage a cotton manufactory of two thousand " spindles." These memorials were all referred to the committee of com- merce and manufactures, which was then, so far as regarded them, a committee of oblivion. After a lapse of two months, that is, about the middle of February, a bill for the relief of the iron masters was reported — read twice — and suffered to die a na- tural death ; having never been called up for a third reading. The other memorials passed wholly unnoticed — and were never, except three or four, even reported on by the committee ! What renders this procedure the more revolting, is, that some of them were from large bodies of men of the first respectability. That from New York was signed by the governor of the state, and other emi- nent characters. And, moreover, many ol the petitioners had agents at Washington to advocate their claims. The senate displayed the same culpable disregard of the ap- plications, the sufferings, and the distresses of their fellow citi- 39 ^06 THE NEW OLIVE BRANCH. zens, engaged in manufactures, as the house of representatives^ They afforded no relief — nor did they even once consider the applications of the petitioners. But they paid somewhat more regard to decorum. The petitioners and memorialists had in succession leave granted them to •voithuruiv their papers^ on the motion of a member of the committee of commerce and manu- factures ! ! The practice of congress, it appears, is to read the heads of petitions ; and then, without further enquiry, to refer thern to the committee to which the business properly appertains. It cannot fail to excite the astonishment of the citizens of the united states to learn, that when they have found it necessary to meet ana address their representatives, elected to guard their inte- rests, and paid liberally for then* services, those representatives do not condescend even to hear or read what are their grievances, or the mode of redress proposed ! This is really so very inde- corous and so shameful as to be absolutely incredible, if the fact were not established on good authority. Many of the most de- spotic princes of the East usually read the petitions of the meanest of their subjects. But under the free government of the united states, the great cities of New York, Philadelphia, Baltimore, and Boston, may combine together to seek relief from intolerable grievances ; respectfully address their representa- tives ; and have their prayers not merely rejected, but not even heard ! The annals of legislation may, I am persuaded, be ran- sacked in vain for a parallel to this outrageous conduct. When we reflect on the waste of time in frothy speeches on points of little importance — or on points of great importance, after the subject has been completely exhausted — and com- pare it with that economy which forbids the spending ten or fifteen minutes in reading a petition from a great city, the capi- tal of a state, with a population of above a million of people, we are lost in astonishment at the introduction of a practice which so egregiously violates every rule of duty, decency, and pro- priety. In the subsequent session, 1817-18, the same pathetic appeals to the justice, the humanity, the generosity, the public spirit ot congress were made, and with little more effect. Two unimportant acts alone on the subject of manufactures were passed at this session. One increasing the duties on iron, and the other on copper, saddlery, harness, cut glass, tacks, brads, sprigs, and Russia sheetings. But on the great and im- portant articles of cotton and woollen goods there was no in- crease of duty. The additional duties on iron have been inef- fectual — as the manufacture is at present in a most prostrate state. THE NEW OLIVE BRANCH. 307 From a full consideration of the premises, it is due to jus- tice to rotate, that the manufacturers of the united states, who, with their families and persons of eveiy description depend- ing on them, amount to 1,500,000 souls* with a capital of 2150,(^00,000, and producing probably S 350,000,000 per an- num, have not had that attention from the government to which their numbers and their importance give them so fair a claim. A large portion of mankind, probably, even in this country, three-fourths have no property but in the labour of their hands. To so many of them as are divested of this by an erroneous poli- cy, one cf the g-rand objects of government is destroyed — And, therefore, so far as property is concerned, their situation is no better than that of tbe subjects of despotism. I go further. The situation of the mamfactiiring' capitalists of the united statea is incotrparably rvorse than that of the man- vfacturing capitalists and subjects of the monarchs of Europe^ so far as regards the protection of property. This strong expression will excite the surprize of some super- ficial readers. But it is a crisis that demands a bold expression of truth. And the assertion need not be retracted or qualified. Here is the proof. Let Mr. Garnett, or Mr. Pegram, or any of the agricultural delegates refute it. Let us suppose a subject of Russia,! to invest a capital of one hundred thousand dollars, for instance, in a manufacture of calicoes. He has no foreign competitor to dread. The fostering care of the government watches over him. -He has loans if necessary. Bounties are al- so occasionally afforded. No combination of foreign rivals can operate his destruction. The domestic market is secured to him, with no other than the fair and legitimate competition of his fellow subjects, which always guards the rest of the nation against imposition. His plans arrive at maturity. He reaps the rich reward of his talents, his time, his industry, his capital. He gives support to hundreds, perhaps thousands, and daily adds to the wealth, power, resources, and independence of the country affording him full protection; and amply repays her kindness. Let us turn from this delightful picture of fostering care, un- der a despotism, to the depressed American capitalist, under a government which, in its principles, is really and truly the best that ever existed. He invests one hundred thousand dollars in a similar establishment ; engages hundreds of people in a useful ♦ From what has appeared of the recent census, I am persuaded this number is far too small. i The reasoning applies equally to France, England, and Austria. 508 THE NEW OLIVE BRANCH. and profitable manufacture ; finally conquers all the various dif- ficulties that new undertakings have to encounter; and brings his fabrics to market, in the hope of that reward to which industry, capital, and talent have so fair a claim. Alas! he has to meet not only the competition of his fellow citizens, but of the manu- facturing world. While he is excluded absolutely by prohibi- tion, or virtually by prohibitory duties, from nearly all the mar- kets in Europe, and indeed elsewhere, the East Indies, England, France, and Italy divide the home market with him, which is crowded with cargoes of similar articles, by the cupidity or the distresses, but as often by the stratagems, of foreign manufac- turers, in order to overwhelm him, and secure the market ulti- mately to themselves. Their goods are sent to vendue, and sa- crificed below prime cost in Europe. His cannot find a market, but at a sacrifice which ruins him. He implores relief from his unfeeling countrymen. But he implores in vain. Their hearts are steeled against his sufferings. They meet all his complaints, all his prayers, with trite common places about " taxing the ma- ny for the benefit of the few, free trade," &c. &c — and he is charged with extortion by men Vi^ho for thirty successive years received from him and his brethren extravagant prices for all their productions ! He becomes bankrupt, and dies of a broken heart. His family, born to high expectations, are reduced to a state of dependence. His workmen are driven to idleness and want, and exposed to the lures of guilt. The state is deprived of a useful citizen, who might have added to her " xvealth^poxver mid re.source.sy His fate operates as a beacon to others, to be- ware of his career. And the wealth of the nation is exhausted to pay for foreign articles, substitutes for which he could have furnished of fai better qviality, and, though nominally dearer, in reality cheaper. 1 his is the policy, and these are its consequen- ces, advocated by the disciples of Adam Smith. And this is the^' deleterious policy, fraught with destruction to the happiness of a large portion of its citizens, that is pursued by the united states of America. Hundreds of capitalists throughout this country— thousands of workmen — millions of destroyed capital — and the general im- poverishment of the nation, bear testimony to the. correctness of this hideous portrait, so discreditable to our country, such a libel on its mistaken policy. To such a man what does it signify by what name you call the government? It is, you say, a republic. True. But alas ! he is ruined by its impolicy. The most despotic government in the world coi-ld do no more than ruin him. And some of them, it appears, would have protectedhim. Therefore, I repeat, so far as property is concerned, the difference, as regards this class of THE NEW OLIVE BRANCH. 309 citizens, is against the united states. In fact, the better the form of government, the more grievous their distress Under a des- potism " to suffer and submit" would be their " charter." But to be mocked and deluded with the promise of equal rights and equal protection under a free government, and unfeelingly con- signed to destruction by thtir own fellow citizens and represen- tatives, by the men whom they have clothed with the power of legislation — barbs the dart with tenfold keenness Having submitted this portrait to the citizens of the united states, I ask, whether there be a greater contrast between the conduct of a fond mother towards her only and darling child — and that of a rigorous step-motVier, towards a step-child, which interferes with her views in favour of her own offspring than there is between the treatment of manufacturers in Russia and in the united states ? If these views be unpalatable, the fault is not mine. Let those answer for them, who have rendered their exposure necessary. Their truth can be judicially proved. The situation of a very considerable portion of our citizens, is far worse than in the colonial state. They had then no com- petitors in the markets of their country but their fellow subjects of Great Britain. Now they have competitors from almost eve- ry part of Europe and from the East Indies. The case of the paper makers affords a striking illustration of this position. One naif of them in the middle states are ruined — not by the impor- tation of British paper, of which little comes to this market — but by French and Italian, with enormous quantities of which our markets were deluged for two or three years after the war. CHAPTER VIll. Dilatory 7node of proceeding in congress. Lamentable rvaste of time. Statement of the progress of bills. Eighty-txvo signed in one day I and four hundred and twenty in eleven I Unfeeling treatment of Gen. Stark. Culpable attention to punctilio. Rap- id movement of compensation bill. To ever\- man interested in the honour and prosperity of the country, it is a subjtct of deep regret to reflect on the mode in which the public business is managed in and bv congress. It is the chief source of the distress ai.d embarrassment of our af- fairs, and requires an early and radical remedy. While in ses- sion, a considerable proportion of the members are employed in chatting — writii g letters to their friends — or reading letters or newspapers. They pay little or no attention to the arguments 310 THE NEW OLIVE BRANCH. of the speakers, except to those of a few of distinguished talents. To some of the orators, however, this is no great disappoint- ment J as their speeches are too often made for the newspapers, and to display their talents to their constituents. But the lamentable waste of time by the spirit of procrastina- tion in the early part of the session, and by never-ending speechifying throughout its continuance, is the greatest evil, and is discreditable to congress and highly pernicious to the public service. There is in almost every session some subject of real or factitious importance, on which every member who believes he is possessed of oratorical talents, regards himself as bound to harangue, and to " keep the floor," for two, three, four, five or six hours. The merits of the speeches are generally measured by the length of time they occupy. They are all, to judge by the puffs in some of the newspapers, elegant, wonderful, power- ful, admirable, excellent, inimitable. In most cases, it will be found, as is perfectly natural, that the early speeches, on each side, particularly if by men of talents, exhaust the subject ; and that those which follow them, do little more than retail the arguments previously advanced. It surely requires no small disregard of decorum for a member to occupy the time of a public body, to whose care are entrusted the con- cerns of a great nation, with such fatiguing repetitions. The debate on the repeal of the compensation act cost some weeks ; that on the Seminole war, fills six hundred pages ; which, if divested of the duplications, triplications, and quadruplica- tions, the rhetorical flourishes, and extraneous matter, would be reduced to two hundred — perhaps to one hundred and fifty. The Missouri question would probably fill from eight hundred to one thousand pages. Some of the prologues to these speech- es are, as was humourously observed by a mem.ber long since, 1 like " sale coats," calculated to suit almost any other subject equally well. And during this miserable waste of time, excite- i ment of angry passions, and seditious threats of separation, there j is a total suspension of the business of the nation, whose blood ■ flows at every pore — whose revenues are failing — whose manu- factures are paralized — of whose commerce one half is annihila- ted — whose merchants and manufacturers are daily swallowed up in the vortex of bankruptcy — whose great staples have fallen in price at least thirtv per cent. — and which exhibits in every di- rection most appailing scenes of calamity and distress ! Some idea may be formed of the mode in which the business of this nation is conducted by its legislature, from the following chronological statement of the periods at which the acts of suc- cessive sessions v/ere approved by the presidents. Between their passage in the tw'> houses and the date of the presidents' signa- tures, there may be some few days difference, for which the THE NEW OLIVE BRANCH. 311 reader will make allowance. But be that allowance what it may, it cannot remove the accusation of a most ruinous waste of time, and a most culpable and shameful procrastination of public busi- ness in congress. In the first session of the twelfth congress, which commenced on the 4th of November, 1811, and terminated on the bth of Ju- ly, 1812, there were one hundred and thirty-eight acts passed which were signed by the president in the following chronolo- gical order — In November 2 Over 73 December - 8 In May 21 January - 9 June 17 February 14 Julv 1st - 8 March - 14 July 6th 29 April - 26 148 73 Txvelfth congress. — Second session. From November Z, 1812, ^& March 3, 1813. — Sixty -two acts. November 1 Over 16 December - - 4 February 23 January - - 11 March 3d - 23 16 62 Thirteenth congress. — First Session. — From May 24, to Aug, 2, 1813. — Fifty -nine acts. May June - - - 00 - 3 Over July - - August 2d - 3 32 24 3 59 The twenty-four acts signed on the 2d of August, contained forty-aix pages of close print. The act imposing the direct tax, is in the number, and contains txventy'two pages. 312 THE NEW OllVE BRANCH. Thirteenth congress. — Secr.nd session. — From December &^ 1813, to April 18, 1814. — Ninety-five acts . December 2 Over 16 January - 7 March - - - 27 February 7 April 1st to 16th - 18 April 18 th 34 16 — 95 Thirteenth congress. — Third session. From September 19, 1814, to March 3, 1815. — One hundred acts. September October - November December 00 1 6 11 Over January February March 1st - 18 - 9 - 38 - 4 March 3d - 31 18 c— 100 The thirty-one acts signed on the 3d of March, contain thirty five pages. This was the ever memorable session of congress, in which the imbecility of the majority and the factious violence of the minority, brought the nation to the jaws of destruction, previous to the close of the war. Fourteenth congress. — First session. From December 4^ 1815, to April 30, 1816.-— One hundred and seventy- two acts. December 2 Over 35 January 4 April 2d to the 24th 39 February 15 2e>th and 27th 59 March - 14 29th 31 30th - 8 S5 ~ 172 THE NEW OLIVE BRANCH. 313 Fourteenth co7ig'ress. — Seco fid session. From December 2, 1816, to March 3, 1817. — One hundred and fourteenacts. Over . 18 On Saturday, March 1st 14 March 3d - - 82 18 l!4 In December - 00 In January In February 8 - 10 The acts of this session are comprised in one hundred pages. Those signed in January occupy three pages and a half— those in February four — those on the first of March nine — and those on the third seventy-three ! Fifteenth congress. — First session. From November 16, 1817, to April 20, 1818. — One hundred and thirty acts. November 00 Over 14 December . . 1 March . 10 January 7 April 3d to 18th . 54 February . . 6 Apri 20th 52 14 130 The fifty-two acts signed on the 20th of April, contain of John E. Hall's edition, no less than eighty-seven pages. In this ses- sion there were, it appears, one hundred and six acts passed in seventeen days— and only twenty-four in the preceding four months and a half ! The annals of legislation may be challenged for any parallel case. Fifteenth congress. — Second session. From November 16, 1818^ to March 3, 1819. One hundred and seven acts. November 00 Over 11 December January . . . 7 4 February March 2d . March 3d . 3S 8 ■ .' 55 11 107 40 314 THE NEW OLIVE BRANCH. This system of procrastination has been coeval with the go- vernment. I am informed by a gentleman of veracity, that Ge- neral Washington, when an extraordinary number of acts were presented to him on the last day of a session, more than he could correctly decide upon, has expressed a strong and most marked disapprobation of so incorrect a procedure. Analysis. Sessions of congress -.--__--9 Duration .-_..- months 39| Acts passed ___-_-_ 988 Of which were signed in eleven days _ _ - 420 Fiz. 1812. July 6th 29 1813. March 3d 23 August 3d - ._.-.. 24 1814. April 18th 34 1815. March 3d - ^ - - - - - 31 1816. April 26th, 2rth and 29tn . . - - 90 18ir. March 3d - 82 1818. April 20th - - - . _ _ . 52 1819. March 3d - 55 420 Thus it appears that in three years and three months there were 568 acts signed — and in eleven days, as I have stated, 420 ! ! Wonderful system of legislation ! No small share of the censure due to the procrastination of the public business, so visible in the above proceedings, justly attaches to the speaker for the time being. He ought to keep a docket of the business brought before the house, and urge com- mittees to perform their duty. Certain days should be appointed to make reports, which ought then to be called for. If not ready, others should be fixed. And whenever the public business is un- necessarily or wantonly procrastinated, his duty requires the use of strong animadversion. This arrangement wo\ild be produc- tive of the most salutary consequences. But for want of this or some other system, a very large portion of every session is literally thrown away. And so much of the business is crowded together at the close, that it is impossible to concoct it properly. Ever since the organization of the governinent, three-fourths of all the important acts have been passed within the last week or ten days of the close of each session. THE NEW OLIVE BRANCH. 315 Is it then surprising that the national business is egregiously ill-managed ? That the reiterated requests of so large a portion of our citizens, for a bankrupt and other salutary acts, are of no avail ? — How is it possible for the members — how is it possible for the president — to discharge their respective duties conscien- tiously, with such a s\stem ? Can any powers short of super- human enable the latter to decide on the justice, the propriety, the constitutionality of twenty, thirty, forty, fifty, sixty, seventy, or eighty acts in one or two days ? Is not this making a mere mockery of legislation ? Two, three, and sometimes four months are drawled awaj- in the early part of the session — Avith three, four, six, eight, ten or twelve acts — and afterwards all the business is hurried through with indecent haste. In the one portion of the time, the progress re- sembles that of the snail or sloth — in the other, that of the high mettled racer. In fact and in truth, if congress desired to bring republican government into disgrace, to render it a bye-word and a reproach, it would not be very easy to devise a plan more admirably calculated for the pui-pose than a considerable part of their proceedings. One ruinous consequence attending the system pursued, is, that at the close of every session, some of the most important bills are necessarily postponed. It is frequently said, in justification of the procrastination of congress, and the little business that is executed in the early part of the session, that the committees are employed in digest- ing and preparing their reports. It is obvious, that this operation must require considerable time. But whoever reflects on the nature of a large portion of the business that is discussed in that body, will be convinced that it might be despatched in a fifth part of the time it occupies. Among the acts hurried through at the close of the session, there are frequently some, and among them private ones, which have " dragged their slow length along" for months before, and which might as readily be decided on in a week as in six months. I annex the dates of introduction and of signature of a few, to exemplify this. Act to divide the state of Pennsylvania into districts - - 1818. Act for publication of laws, Act for the relief of B. Birdsall Act for incorporating Columbian Institute, Act for relief of General Brown, Act for relief of T. & J. Clifford Reported. Signed. Feb. 4 April 20 Jan. 16 April 20 Jan. 27 April 20 Feb. 3 April 20 Feb. 9 April 18 Jan. 20 April 20 316 THE NEW OLIVE BRANCH. The bill for the relief T. & J. Clifford, which was three months on its passage through the houses, contains about twenty lines, and was for the remission of duties paid on articles not subject to duty. Three days would have answered as well for the dis- cussion as seven years. Such is the case with half the bills that are crowded together at the last day of the session. It may not be uninteresting to make a few fiirther extracts from the journals, shedding additional light on this important subject. 1819. April 18. " Engrossed bills of the following titles " (nine in number J were severally read a third time and passed." April 20. " Bills from the senate of the following titles (ten *' in 7iicmber') were severally read a third time and passed." Eodem Die. "A message from the senate that they have pass- " ed bills of this house of the following titles, to wit — (eighteen " in number. y By a careful search through the journals of different sessions, we might find three or four hundred bills, thus bundled togeth- jer, and hastilv read off", ten or a dozen en suite. The case of General Stark deserves to be put on record, to corroborate some of the opinions offered in this chapter. On the 6th of March, 1818, a petition was presented by this meritorious veteran, representing his necessitous circumstances, and praying that tke bouilty of the national government might be extended to him, in the decline of life, in compensation of his faithful services in defence of his country. It was referred to a committee, who reported a bill on the 9th, which was read the first and second time on that day. It then lay over untouch- ed for above fi'oe xveehs^ till Saturday the ISth of April, when it was passed and sent to the senate, where it was read and refer- red to the committee on pensions, who reported it on that day Avithout amendments. It was read the third time on Monday the 20th, in committee of the whole, and agreed to zuith amend- ments , It being against a rule of the senate to pass a bill on the same day in which it has undergone amendments, Mr. Fromen- tin moved that the rule be dispensed with. But this motio?iwas inifeelingly rejected. And as the session was closed that day, the bill of course was lost ; and the venerable old hero, about ninety years of age, and bending over the grave, was disappoint- ed at that time of receiving the pittance intended for him. The importance of his victory at Bennington, which led to those all- important events, the battle of Saratoga and the capture of General Burgoyne, which stand conspicuous among the proud- est triumphs of the revolutionary war, is so deeply impressed on the public mind, that every good man in the nation felt deep regret and indignation at this very ill-timed and ungracious punctilio. THE NEW OLIVE BRANCH. 31 7 The compensation bill, which was to render members of con- gress salary ojfficers^ at the rate of \50Q> do'lars per annum, pass- ed by a former congress, foi-ms a proper contrast to the bill in favour of general Stark. It was read the first and second time in the house of representatives - March 6th, 1815. Read a third time, and passed - - - 9th Read first time in senate - _ _ - lith Second time - - _ - - 12th Third time and passed - - - 14th Laid before the president - _ - - 1 8th Approved same day. What wonderful economy of time ! Thus a bill for their own benefit, which introduced a novel principle into the country, in twelve days passed through all its stages from its inception to the presidential approbation ! ! What a striking and indelible reproach to congress arises from a contrast of this case with that of the veteran Stark ! How wonderfully their personal interest accelerated their move- ments ! The citizens of the united states, however, are answerable for a large portion of the derelictions of congiess. Most of the members are ambitious of popularity ; which forms one of the principal inducements to seek a seat in that body. And the ut- ter inattention too generally displayed by the citizens to the con- duct of their representatives, induces a degree of indifference tow^ards the interests and wishes of constituents. A more fre- quent call for the yeas and nays, by those members who are sin- cerely desirous of discharging their duty, and of having the pub- lic business punctually attended to, together with a publication of lists of votes on all important questions, previous to elections, would operate powerfully on the feelings of the members. It every member whose votes militated with the substantial inter- ests of his country, were sure to be discarded, as he ought to be, on the day of election, the proceedings of congress would exhibit a very different appearance from what they do at present. 318 THE NEW OLIVE BRANCH. CHAPTER IX. Attempts to prove the state of affairs prosperous. Their fallacy established. Destructiofi of industry in Philadelphia and Pitts ' burg. Axvful situation of Pennsylvania. 14,537 suits for debt., and 10.,326 judg-77ients confessed in the year 1819. Depreciation of real estate 115,544,629 dollars. For a considerable time, elaborate efforts were made to prove that the greatmass of our citizens were highly prosperous. Even official messages, at no very distant day, announced this idea. But the veil that obscured the appalling vision of public distress is removed, and there is now no diversity of sentiment on the subject. Bankruptcy of banks — individual ruin — and sheriffs' sales to an extent never known before — the idleness of thousands of those who have no property but in the labour of their hands — resolutions of town meetings — memorials and petitions from almost every part of the middle and eastern states — messages of governors — deliberate instructions of the representative bodies in some of the states — acts of legislatures., suspending the collec- tion of debts — and, to close the long train of calamity, the emigra- tion of American citizens to a Spanish colony, seeking an asy- lum from the distress they suffer in their own country — all dis- tinctly proclaim a deplorable state of society, which fully evin- ces a radical unsoundness in our policy, loudly and imperiously demanding as radical a remedy. No temporizing expedients will suffice. Nothing short of a complete and permanent protec- tion of the national industry, so as to enable us to reduce our demands from Europe., xvithin our means of payment., will arrest us in the career of impoverishment — and enable us to regain the ground we have unhappily lost, and take that high and com- manding stand among nations, which nature and nature's God, by the transcendent advantages bestowed on us, intended we should enjoy — advantages which for five years we have so prodi- gally squandered. Although the prevailing depression and distress are generally well knovv^n, yet few are fully acquainted with their extreme in- tensity. Indeed, it is at all times difficult and scarcely possible to realize, from general description, the extentof suffering which mankind endure — whether by war, famine, pestilence, or want of employment. In the last case, it would be necessary to tra- verse by-lanes and alleys — to ascend to garrets — or descend to cellars — to behold the afflicted father, after having pawned his THE NEW OLIVE BRANCH. 319 clothes and furniture, destitute of money and credit to support his famishing wife and children — his proud spirit struggling be- tween the heart-rending alternatives of allowing them to suffer under hunger and thirst, or else sinking to apply to the overseers of the poor — to ask alms in the street — or to have recourse to soup-houses for relief.* These are afflicting realities, with which, I hope, for the honour of human nature, the presidents and delegates of agricultural societies, who enter the list to pre- vent the relief of their fellow citizens, and perpetuate their suf- ferings, are wholly unacquainted, I cannot here enter into particulars of the awful scenes that overspread the face of the land, and shall confine myself to a slight sketch of the lamentable devastation of national prosperity and private happiness, experienced in Philadelphia and Pittsburg, which so many worthy, but mistaken men are labouring to per- petuate. By an investigation ordered during last autumn by a town meeting of the citizens of Philadelphia, and condvicted by gen- tlemen of respectability, it appears, so great was the decay of manufacturing industry, that in only thirty out of fifty- six branches of business there were actually 7728 persons less emplo}ed in 1819 than in 1816, whose wages amounted to g 2,366 935. No returns were procured from twenty -six branches, viz. Bookbinders Manufacturers of gun-powder Brewers Painters and glaziers Brickmakers Plumbers Carpenters Shoemakers Coopers Shotmakers Chocolate makers Sugar bakers Calico printers Snuff and tobacco manufactu- Curriers turers Chair makers Stonecutters Dyers Turners Engravers Tanners Embroiderers Umbrella makers Glovers Wheelwrights, &c. &c. Glass manufacturers Assuming only half the number, in these twenty-six, that were in the other thirty, the aggregate would be 11,592 — and, were only one woman or child dependent on each person, the * Some idea may be foi-med of the state of our cities, from the circumstance, that in Baltimore, there ai-e no less than twelve stations for distributing soup tick- ets. In Philadelphia, tlie distribution is very gi-eat, at the rate of a pint to each person. S20 THE NEW OLIVE BRANCH. whole, out of a population of about one hundred and twenty thou- sand, Would amount to - - - persons 23,184 Whose wages would be - - - ^3,550,402 And allowing the work when finished, to be worth double the wages, which is a moderate calculation, the value would be - - - ^7,100,804 lost in a single city in one year ! Let us now survey Pittsburg, where we shall behold a similar scene of devastation. This city in 1815, contained about six thousand inhabitants. It then exhibited as exhilirating a scene of industry, prosperity, and happiness, as any place in the world. Its immense local advantages, seated at the confluence of two noble rivers, forming the majestic Ohio ; its boundless supplies of coal ; and the very laudable enterprise of its inhabitants, had for a long time rendered it the emporium of the western world. But, alas ! the immoderate influx of foreign manufactures, pour- ed in there shortly after the peace, produced a most calamitous reverse. The operations of the hammer, the hatchet, the shut- tle, the spindle, the loom, ceased in a great degree. Noble es- tablishments, which reflected honour on the nation, were closed ; the proprietors ruined ; the workmen discharged ; a blight and a blast overspread the face of the city ; and the circumjacent coun- try, which had shared in its prosperity, now equally partook of its decline. By a recent and minute investigation, conducted by citizens of high standing, the following appeared to be the — Actual state of the city of Pittsburg: Persons deprived of employment, or less employed in 1819 than in 1816 .... 1288 Supposing only one woman or child depending on each of tfee above . . . . . 1288 It would amount to . . . . .2576 The amount of work done in 1816 was . ^2,61 7,833 In 1819 ..... 832,000 Loss to Pittsburg .... 1,785,833 Loss to Philadelphia, as before, . . 7,100,804 Annual loss in two cities in one state . . ^8,886,637 THE NEW OLIVE BRANCH. 321 When the other cities and towns throughout the union, where similar devastation has occurred, are taken into view, it will not be an unreasonable calculation to presume it six-fold elsewhere : but to avoid cavil, I will only suppose it treble— Which will amount to .... ^26,659,911 Philadelphia and Pittsburg . . . 8,886,637 Total loss of industry . • . g35,546,548 By the wretched policy of fostering foreign manufactures and manufacturers, and foreign governments ; buying cheap bargains abi'oad, and consigning our own citizens to bankruptcy and beg- S^^3\' . . . ^ . , With these overwhelming facts staring us in the face, is it not insanity to be debating about the causes of the existing dis- tress ? Who can entertain a doubt as to the grand and primary cause ? Is it not as plain as " the hand writing on the wall ?"— Does it not clearly arise from the destruction of so large a por- tion of the national industry ? What ! an annual loss in two cities containing about 130,000 inhabitants, of nearly nine millions of dollars, and proportionable losses almost every where else ! Such a course, steadily continued, would impoverish China more rapidly than she has accumulated her immerse treasures. It is not therefore wonderful that it has, in a few years, impoverished a nation whose sole patrimony was her industry. Some public documents have recently appeared, which prove the distress of the country far more intense and extensive than had been previously conceived. A committee of the senate ot Pennsyl- vania, appointed to enquire into the extent and causes of the gen- eral distress, addressed circulars to all the prothonotaries and sheriffs in the state, whence they collected the following awful facts; The number of actions brought for debt in the year 1819, was 14,537 The number of judgments confessed . . 10,326 Exclusive of those before justices of the peace, about half the number. Imprisonments for debt in the city and county of Phil- adelphia . . . . . 1,808 In Lancaster county . . . - 221 In Alleghany county . . . . .286 A report made to the house of representatives, by a commit- tee appointed for the same purpose as that in the senate, appears to estimate the depreciation of the real estate in Pennsylvania at one-third of the value ascertained bv the united states assess- ment in 1815, which was, §316,633,889 — of course the depreci- ation is 8105,544,629. A memorial referred to in another report, states— 41 322 THE NEW OLIVE BRANCH. " That embarrassment is universal ; that the sordid and avari- " cious are acquiring the sacrificed property of the liberal and " industrious ; that so much property is exposed to sale vmder *' execution, that buyers cannot be had to pay more for it than " the fees of office." Would to God, that this aifecting picture could be placed in large characters in congress hall, in the president's house, and in the offices of the secretaries of state and the treasury, that they might be led to take the necessary measures as early as possible to relieve such sufferings. This, let it be observed, is far from the whole of the evil. The comparison is only a retrospective one — to shew the precipitous descent we have made from a towering height. Let us now see the point to which we might, and by a proper policy would have ar-rived. In five years, from 1810 to 1815, as already stated, the manufacture of cotton increased from 10,000 to 90,000 bales, or 270,000,000 lbs. The other manufactures of the countiy in- creased very considerably, but not in the same proportion. By the statements of the marshals, and the calculations of Mr. Coxe. a gentleman perfectly competent to this service, it appears that the manufactures of the united states in 1810, amounted to 172.00' ',000 dollars. Let us suppose that instead of a multiplication nine-fold, ' such as took place in the cotton branch between 1810, and 1815, the general increase was oniv fifty per cent, it follows, that in 1 8 1 5, the whole of our manufactures must have amounted to above 250,000,000 dollars. Inferring from past experience, they would, under an efficient protection by the government, have increased from 1815, to 1820, fifty per cent, and of course would now be above 370,000- 000 dollars. It is impossible to pursue this train of reflexion, and compare what we might be, with what we are, without sensations of the keenest distress, and a clear conviction of the radical unsound- ness of a policy, which has in a few years produced so much destruction of happiness and prosperity. CHAPTER X. Causes assigned for the existing distress. Extravagant banking. Transition to a state of peace. Fallacy of these reasons. True cause^ destruction of industry. Comparison of exports for six years. Since public attention has been drawn to explore the causes ©f the existing evils, some of our citizens have ascribed them to THE NEW OLIVE BRANCH. 323 the abuses of banking, and others to " the transition from a state ofivar to a state oj peare^'' — overlooking the real cause, the pros- tration of so large a portion of the manufacturing industry of the nation — and likewise overlooking the strong fact, that all nations have fallen to decay, in proportion as they abandoned, and have prospered in proportion as they protected, the industry of their people. Let us brief!}' examine both of these alleged causes of distress. It is impossible to defend the legislative bodies, who incorpo- rated such hosts of banks at once. They are deserving of the most unqualified censure ; and it is to be regretted that they can- not be rendered indi\idually responsible for the consequences. But the mischief that has arisen from those banks, has been greatly overrated. I submit a few facts and reflections on the subject. With the state of Pennsylvania I am more familiar than with any of the others ; and shall therefore found mv reasoning on the system pursvied here. It will apply, mutatis ?m/tondis^to all those which have carried banking to excess. In 1814, the legislature of this stale incorporated forty-one banks, of which only thirty-seven went into operation — of these I present a view — Capital Capital authorised. paid in. Thirt^^-three country banks - Sl-2,665,000 §5,294,238 Four city banks - - 3,500,000 2,134,000 gl6,l65,O0O 87,428,238 Two reports, recently made to the legislature of Pennsylva- nia, cpnvey an idea that the capital of these banks was much greater than it really was. '' The people of Pennsylvania, during an expensive war, and " in the midst of great embarrassments, established forty -one " new banks, ruith a capital of 17 ,500^00 dollars — and authority " to issue bank notes to double that amount."* " A bill, authorizing the incorporation of forty-one banking " institutions, ruith capitals amounting- to iipxvards o/" 1 7,000,000 " dollars^ was passed by a large majority."! Several of them had been in operation previous to the act of incorporation — particularly the Commercial Bank in Philadel- phia, with a capital of 1,000,000 dollars, and others with jjroLa- bly capitals of S750,000 : so that the addition then made to the banking capital of the state was only about 5,700,000 dollars. ♦ Report to the house of representatives. f Report to the senate. 334 THE NEW OLIVE BRANCH. It is perfectly obvious, that in calculating the effects produced by these banks, we must have reference not to the capital autho- rized — but to that actually paid in. Had every one of these banks been fraudulently conducted, and become bankrupt, would it account for the excessive distresses of the state? It would be idle to pretend it. The circumstance would have produced great temporary embarrassment — but our citizens would soon have recovered, had their industry been protected. The population of the state is above 1,000,000. Its manu- factures in 1810, as stated by Mr. Coxe, were 32,000,000 of dol- lars — and had probably risen in 1814, to 45,000,000. Its do- mestic exports for the last three years, have been above 20,000,000, or nearly 7,000,000 per annum. Now, can it be believed that the specified increase of banking capital in a state with such great resources, could have produced such ruinous consequences ? Surely not. In cases of great calamities, arising from embargoes, block- ades, unexpected war, or peace. New York and Philadelphia have each suffered nearly as much loss as the whole capital of all those banks, and speedily revived like the Phrenix from her ashes. Let it be observed, that after deducting the capitals of — The Bank of Lancaster* . _ _ _ g600,000 Marietta 239,430 Pittsburg 316,585 Reading 299,440 Easton 211,830 gl,667,285 The remaining country banks only average about 125,000 dol- lars each. Some of them operate in a space, of which the dia- meter is thirty, fort5% or fifty miles. Surely the doctor's appren- tice, who, finding a saddle under his patient's bed, ascribed his illness to his having devoured a horse, was not much more lu- dicrously in error, than those who ascribe the whole or even the chief part of the sufferings of the state to this cause. Let it be distinctly understood, that I freely admit that some of those banks have done very great mischief, and that several have been improperly conducted. But had the industry of the state been protected, and trade flourished, the great mass of them would have gone on prosperously, and the whole would * Four of tliese towns a:-e places of importance, and carry on trade very ex- tensively. THE NEW OLIVE BRANCH. 325 not have produced one-tenth part of the injury that has resulted from those that have been ill-managed. Before I quit this subject, let me observe, that the greater portion by far of these banks have been, I believe, fairly and honourably conducted : and that little inconvenience was felt by or from any of them, from the time of resuming specie pay- ments, till of late, when the unceasing drain of specie exhausted them of the pabulum on which banks are supported, and obliged them to diminish their issues, and to press on their debtors, of whom many were rained. Notwithstanding all their efforts, se- veral of the banks have been obliged to stop payment. The idea that the public distresses have been a necessary con- sequence of " the transition to a state of peace ^^'' is still more exti-a- vagant. To Great Britain the transition was truly formidable. She had by her orders in council, blockades, and fleets, engross- ed the supply of a large portion of the continent of Europe, which, on the return of peace, relied on itself, and therefore de- prived her of various profitable markets. But I ask any man of common sense, how this applies to our case ? Were we, at the treaty of Ghent, excluded from any foreign markets which we enjoyed during our short war ? Surely not. Far from having our markets circumscribed by " the transition to a state ofpeace^^ they were greatly enlarged. In 1815, our exports were, as ap- pears below, seven hundred per cent, more than in 1814, and in the three entire years subsequent to the peace, threefold what they were in the three preceding years. Domestic exports from the united states. 1812 - 830,032,109 1813 - - 25,008,152 1814 - 6,782,272 61,822,533 Average 20,6u7,511 1815 - B45,974,403 1816 - - 64,781,896 1817 - 68,313,500 179,069,799 Average 59,689,933 That the " transition'''' from an average export of ^20,000,000 to nearly §60,000 ,000, can account for the lamentable and precipi- tous fall we have experienced, no person of candour will pretend. It would be equally wise to assert, that a man was ruined by raising his income from two thousand dollars to six thousand per annum. If, however, he renounced his industry, and, when he only trebled his income, increased his expenses six fold, then his ruin would be as easily accounted for, as the lamentable pic- ture this country exhibits. 326 THE NEW OLIVE BRANCH. I was, however, in error. The " transitiori*^ did produce the effect. Should it be asked how ? I reply — The war protected the domestic industry of the nation. It throve and prospered un- der that safeguard, which the peace tore down de fonds en com- ble. And congress, whose imperious and paramount duty it was to step in, and replace the protection, failed of that duty The consequences were foretold. The industry of the country was laid prostrate — its circulating medium dramed away — its re- sources exhausted — and distress overspread the face of the land. Bjt it is too farcical for argument to assert that a peace which trebled our exports, necessarily brought on a state of distress and impoverishment, which is chargeable wholly to our short- sighted policy. CHAPTER XI. The everlasting complaint of'-'- taxing the many for the benefit of the few." Fallacy and injustice of it. Amount of impost Jor fourteen years. For the year 1818. Impost for the protection of the products of the soil in that year above 4,500,000 dollars. The changes have been rung throughout the united states, since the commencement of the government, on the immensity of the favours conferred on the manufacturers, in point of pro- tection — their insatiable temper — the impossibility of satisfying them — and the dreadful injustice of "taxing the many for the benefit of the few," which have been used as a sort of war whoop for exciting all the base passions of avarice and selfishness in battle array against those to whom the tax is supposed to be paid. It rarely happens, in private life, that vociferous claims for gi'atitude can stand the test of enquiry. When weighed in the balance of justice and truth, they are uiaiformly found wanting. And as a public is an aggregation of individuals, actuated by the same views, and liable to the same and greater eiTors, it would be extraordinary, if similar claims of collections of people were not found to rest on as sandy a foundation. To investigate the correctness of this everlasting theme has become a duty. To place the subject on its true ground, will dispel a dense mi^t ot error and delusion with which it is envel- oped. If the debt can be paid, let it, in the name of heaven, be discharged, and let us commence de novo. If it be beyond the power of payment, let the delinquent parties take the benefit of the insolvent act, and exonerate" themselves from a load, b}^ which they are crushed as between " the upper and the nether mill-stone." THE NEW OLIVE BRANCH. 327 The expenses of our government require revenues, which have risen from 4,000,000 to .7,0C'0,(,0C) dollars per annum. Pro- vision must be made for this sum in one or all of three modes— by excise — direct taxes, or customs. The first is universally ab- horred here. The second are almost equally obnoxious. It therefore follows, that the impost is the next and grand resource. The sum required must be raised without regard to manufactures or manufacturers, — and indeed if there were not a manufacturer in the country. It is out of the power of the government to raise the necessary revenue without laying considerable duties on manufactures — as all other articles, such as tea, sugar, wines, coffee, are dutied as high as they will bear. Therefore the manufacturers, who, let it be observed, bear their own share of all these duties^ of every description^ are under no obligation of gratitude whatever for them. But let us examine the subject more closely. Let us suppose that these duties had been laid solely to serve the manufactur- ers, without any regard to the emergencies of government — and that the proceeds had been reserved in the treasury. Let us see what would be the extent of the mighty boon. The whole of this enormous and inextinguishable debt is comprised in the duties imposed on such foreign merchandize as rival our own manufactures. The utmost cravings on the score of gratitude will not dare to charge to the account the duties on sugar, coffee, tea, wine, salt, &c. The entire impost for fourteen years, from 1801 to 1814, inclusive, was . . Sl59,762,602* On Spirits . . . ^25,441, 543 Wines . , . 7,646,476 Sugar . . . 19,455,110 Salt .... 4,057,047 Teas . . . 8,565,874 Coffee . . . 8,777,113 Molasses . . . 4,980,650 Sundry articles . • 7,47^ ',3 l7f 86,394, 1 30t Leaving a balance of ... . g73,368,472 fTo which add half of the last item of sundries as probably on manufactures . . 3,735,158 Total ..... 877,103,630 This is the whole amount levied on manufactures of ever)'- kind, for fourteen years, being about five millions and a half per annum. * Seybert, 454. f Ideiti, 398 to 405. 328 THE NEW OLIVE BRANCH. The white population of that period averaged probably about 7,000,000. Of course the duties paid on manufactures amounted to about eighty cents per head ! And this is the sum and sub- stance of the " taxes levied on the many by thefew^^'' and the im- mense favours conferred on " the few" by '■'• the many !" which have furnished matter for so many tedious speeches in congress, tiresome declamations at public meetings, and verbose newspa- per essays and paragraphs without end or number ; with which "the welkin has rung" — and which, I repeat, have called into activity all the base passions of our nature, and excited a deadly hostility in the minds of one portion of our citizens against another. The clamour would have been contemptible, had the whole sum been granted as an alms, or through generosity. But when it is considered that every dollar of this sum has been rais- ed for the mere purpose of revenue, language cannot do justice to the feelings the affair is calculated to excite. I shall now consider the subject at a more recent period. The whole amount of duties ad valorem for 1818, was . . Si 1,947,260 To which add for manufactures of lead, iron, and steel ; glass bottles, copperas, allum, and other ar- ticles subject to specific duties . . . 694,49^ Total on manufactures ..... 12,641,753 A large portion of those duties was levied on silks, high-priced cambrics and muslins, gauzes, lii)- ens, lace shawls, lace veils, pearls, embroidery, gold lace, &c. &c. which our citizens do not man- ufacture. These duties are by no means chargeable to the protection of manufactures — suppose 1,500,000 Balance of impost supposed for protection of man- ufactures . . . . . . . gl 1,141,753 Against this we must set off all the duties levied for the pro- tection of the landholders, viz. On spirits, for the encouragement of the culture of grain, and the protection of the peach brandies, rye whiskey, &c. of the farmers . . ^2,646,1 86 Sugar . ' 1,508,892 Cotton - . 126,542 Hemp . . 148,873 Indigo ...... . 19,049 Amount carried over 4,449,542 THE MEW OLIVE BRANCH. 329 Amount brought forward 4,449,542 Coals 46.091 Cheese . . ... . . 16.694 Impost for protection of landholders . . ^4,512,327 Leaving a balance against the manufacturers of SS6,629,426 When we consider how frugal and economical the great body of our farmers are in the eastern, middle, and western states ; how few of them, comparatively speaking, purchase imported ar- ticles, except groceries ; and how expensively the inhabitants of our cities and towns live in general ; it will appear more than probable, that of the goods on which the above duties are col- lected, not nearly one-half are consumed by farmers. A view of the preceding tables and statements affords the fol- lowing results — 1 . That the whole amount of the duties levied on manufactur- ed articles of every description, for the year 1818, having been only about 12,600,000 dollars, and the population of the united states at present being about 10,000,000, of whom probably 8,500,000 are white, the average is less than one dollar and a half for the white population. 2. That of this amount about one-eighth part is levied on ar- ticles not interfering with, and consequently not chargeable to the account of the protection of, manufactures. 3. That there are duties levied in favour of agriculture equal in amount to more than a third part of those levied on manufac- tures. 4. That when the latter duties are set off against those levied for the protection of manufactures, the remainder is about seven- ty-five cents for each free person in the united states. 5. That prpbably more than half of the goods on which those duties are levied, are consutp.ed in towns and cities and of course that the amount paid by the farmers and planters is not above sixty cents per head, notwithstanding the senseless and illiberal clamour excited on the subject. 6. That were all the duties on manufactured articles removed, the burdens of the community would not be diminished a single dollar ; as there is no more revenue raised than the emergen- cies of the government require, and of course some other taxes ©r duties must be devised. 42 S30 THE NEW OLIVE BRANCH. CHAPTKR XII. Immense advantages enjoyed by the landholders for nearly thir- ty years^ viz. an exclusive supply of the domestic market — ■ and excellent foreign markets. Exorbitant prices of the ne- cessaries of life. Great extent of the domestic market. Inter- nal trade of the united states . For nearly thirty years, the landholders of this country enjoy- ed a high degree of prosperity. They had almost univer- sally excellent foreign markets for all their productions — and, from the commencement of the govel-nment, have had what has been so absurdly termed a " monopoly" of the domestic market, having had the exclusive supply of the manufacturers, who have not consumed of foreign vegetables, bread-stuffs, butcher's meat, fowls, fuel or any other of the productions of agriculture, to the amount of one per cent per annum. It is, nevertheless, a fact, however incredible, that those citizens, enjoying this im- portant exclusive domestic market, and havmg laid very high duties on all the articles that interfere with their interests, as snuff, tobacco, cotton, hemp, cheese, coals, &c. ; accuse their manufacturing fellow citizens as monopolists ; who are not only shut out of nearly all the foreign markets in the world by prohi- bitions and prohibitory duties ; but even in their own markets are exposed to. and supplanted by, foreign adventurers of all countries ! ! ! It is difficult to conceive of a more unjust charge, or one that comes with a worse grace from the accusers. During this long period, the farmers sold in all cases at high, and in many at most exorbitant prices. To instance a few ar- ticles, in order to illustrate the remark : we paid them ten and twelve, and thirteen dollars a barrel for flour — twelve to eigh- teen cents per lb. for beef and pork — twelve to fourteen cents for tobacco — fifteen to thirty cents for cotton ; and in the same proportion for all their other productions, though it is well known, they could have afforded them at half those prices, and made handsome profits. In one word, the history of the world affords few, if any instances of such a long-continued series of prosperity as they enjoyed. The manufacturers cheerfully paid those prices. The cotton- weaver, the smith, the shoemaker, the carpenter, the labourer, who earned six, seven or eight dollars per week, never lisped a word of complaint, when they paid twelve or thirteen dollars per barrel for flour, eight or ten cents per pound for mutton, &c. &c. Would to heaven they had experienced the same degjree of liberality from their farming and planting fellow citizens ! THE NEW OLIVE BRANCH. 331 It remains to ascertain the effect of this exclusive market which our manufacturers have for thirty years afforded their agricul- tural fellow citizens without the least murmur. It is impossible to ascertain with precision the number of our citizens engaged in manufactures, with their families. The census is miserably defective in this respect. It does not fur- nish the population of the towns and cities, which would afford a tolerable criterion. We are therefoie left to mere estimate. The highest number that I have ever heard surmised, is two millions ; the lowest, one. Truth, as is generally the case, may lie in the medium. I will therefore assume one million and a half.* As there may be some objections on the subject of the num- ber thus assumed, I annex the ground on which it rests. I suppose, as I have stated, the white population of the coun- try to be about 8,500,00 and to be proportioned as follows — Agriculturists - . - - _ 5,000,000 Artists, mechanics, manufacturers, &c. - 1,750,000 Professors of law and physic, gentlemen who live on their income, merchants, traders, seamen, &c. - - 1,750,000 8,500,000 I believe I would not have been wide of the mark, in adding 500,000 to the second item, and deducting 25(),000 from each of the others. But I prefer taking ground as little as possible liable to cavil. Dirom, an eminent statistical writer, estimates the average annual consumption of grain in England, at two quarters, or six- teen bushels, for each person. f Colquhoun, however, es- timates it only at ten bushels. I will assume twelve bush- els. At this rate the consumption of the manufacturers would be^about 21,00c;,000 of bushels per annum. The average price of wheat in the united states during the wars of the French revolution, was about one dollar and seventy- five cents per bushel. For the last two years, it has been about one dollar and twenty-five cents. At the latter rate the amount of grain would be 25,250,000 dollars. • The recent census will very probably prove that the number is 2,000,000. j- " The average prices of all these several kinds of grain being 20«. 6d., the " price of two quarters for the maintenance of each person in tliese years, only " amounts to 14s." JHrom on the corn law* and com trade of Great Britain, ap- pendix, page 51, 33S THE NEW OLIVE BRANCH. Dirom states the average daily consumption of flesh meat in Paris at about five ounces and three quarters for each person. An average for London he supposes* probably more than dou- ble that amount, or eleven and a half, which is about five pounds per week. As our citizens eat meat oftener, and our working people more generally, than those of most other nations, it will be fair to assume six pounds per week for each person, which is equal to about three hundred and twelve pounds and a half per annum. At eight cents per pound, a moderate average till lately, this amounts to twenty-five dollars per annum, or for the whole 43,750,000 dollars. Allowing for milk, butter, eggs, vegetables, fruit, lard, fire- wood, coals, home-made spirits, &c. &c. one dollar per week, it amounts to 91,000,000 of dollars. Summary. Grain . - . . _ g25,250,000 Animal food - - - - - 43.750,000 Milk, butter, fuel, &c. &c. - - ~ 91,000,000 Consumption of the manufacturers - - jgl 59,000,000 Now, this is the market, for bare subsistence, which the ma- nufacturers furnish their agricultural fellow citizens, of whom many regard them with jealousy and murmuring — often with decided hostility' — and assume^ that duties imperiously required for the purposes of the treasury are favours corf erred on manu- facturers ! That this calculation is not materially wrong, will appear from the following view — A quarter dollar per day, or a dollar and three quarters per week, for the maintenance of each individual, which, as our citizens live, is moderate, would amount to ninety- one dollars per annum, or — For 1,750,000 people - - - ^159,250,000 Let me further observe, that this is a market which might have been immensely increased annually by immigration, had a sound policy held out suitable encouragement to invite the manufac- turers of Europe. It is not easy to calculate the extent of the market for raw materials which the manufacturers afford their agricultural fel- * The daily consumption of each individual in Paris, is pretty accurately as- " certained, from tlie tax on cattle paid at the barriers, to be about five ounces « and three quarters. In London it is probably more than double."™/ffe?n 248. THE NEW OLIVE BRANCH. 333 low citizens, and which might have been doubled by a correct system. I will state what I suppose it must have been in 1815, previous to the prostration of manufactures. Cotton g9,000,000 Wool* - - - . - . 10,000,000 Hemp - - - - . - 2,000,000 Flax, hides, skins, furs, timber, hops, barley, oats, &c. - . , . . 8,000,000 29,00f),0(^0 Brought forward, for sustenance - - 159,000,000 Total - - . . - gl 88,000,000 As the illiberal prejudices on this topic, excite jealousies and disgusts which may eventually prove dangerous to the harmony of the nation, too much pains cannot be taken to remove them. I shall therefore place the subject before the reader in anew and not less striking point of view. I have shewn that the market afforded to their agricultural fellow citizens by the manufacturers, amounts per annum to about Si 88,000,000. It is proper to examine the extent of the market reciprocated to them. It may be assumed that each white person in the union con- sumes in furniture and clothing, at the average rate of about for- ty dollars per annum. This, for the whole of the agricultu- rists, whom I have estimated at S 5,000,000, amounts to - - 200,000,000 And for the slaves, supposed to be 1 ,500,000, at 15 dollars per head, to 22,500,000 g Per contra. One-half the farmers throughout the union make three-fourths of their S own clothing, &c. which is equal to 75,000,000 The remaining half probably manu- facture about one-third of their cloth- ing, equal to - - - 33,000,000 222,500,000 108,000,000 * Mr. Coxe states an opinion in his tables, that the ^owth of wool in the united states in 1812, was from 20 to 22,000,000 lbs. 384 arnE WEW olive branch. Brought forward, 108,000,000 222,500,000 The clothing for the slaves is princi- pally of family fabrics. This would warrant the deduction of the whole 22,500,000. But I suppose the plant- ers may purchase to the average amount of five dollars for each slave, that is, in the whole 187,500,000, which leaves of family fabrics 15,000,000 Total amount of household fabrics produced and consumed by the agriculturists. - 123,000,000 Leaving the amount of clothing and furniture pur- chased by them - - - - 99,500,000 Of this amount probably 10 per cent. is of foreign manufacture - 9,950,000 One-half of the manufacturers, say 750,(X)0, live in country towns or in the country, and purchase probably one-half of their clothing from the farmers in the neighbourhood, say 15,000,000 24,950,000 Balance, being the whole of the consumption of ar- ticles purchased of our manufacturers by agricul- turists - _ _ - . ^74,550,000 It thus appears, notwithstanding the clamour against the ma- nufacturers, that they purchase above 110,000,000 dollars annu- ally more from, than they sell to, the agriculturists. A contrast between the domestic exports and the internal trade of the nation, cannot fail to be interesting, as it will enable us to ascertain whether they have borne in the minds of our ci- tizens and statesmen the comparative rank to which they are en- titled. The domestic exports of the united states for thir- ty years, from 1789, to 1819, inclusive, have S been ----- 1,058,800,898 Average - - - - - - - g 35,293,363 THE NEW OLITE BRANCH. 335 I shall proceed on the assumptions on which I have already ventured ; that the agriculturists embrace about 5,000,000 oi our white population ; that all the other classes of whites, who are consumers of the productions of the farmers and planters, are 3,500,000 ; and that each of the latter classes, consumes to the amount of a quarter dollar per day, or one dollar and seventy- five cents per week in food and drink. Let us see the result— 3,500,OfX) of people at one dollar and seventy-five cents per week, equal to S6,125,000 per week, or per annum 8318,500,000 Once more. p. ^ w • 1 . f white - 8,500,000 Our present populationis about | ^lack - - i;500,u00 10,000,000 The average expenditure of forty dollars per annum, already assumed, for the furniture and clothing of 8,500,000 white people, Amounts to g340,000,000 1,500,000 slaves, each 15 dollars . - 22,500,000 365,500,000 Of which we import about - - - 60,000,000 Leaving a balance furnished by our own industry, of - - - - - 305,500,000 To which add the above sum for food and drink 318,500,000 It gives a total of - - - - 623,000,000 Raw materials as before _ - - 29,000,000 Annual internal trade of the united states - ^65 7,000,000 What exhilarating views ! The domestic market for food and drink is nearlv seven hundred — and the internal trade above fourteen hundred per cent, more than the average of the whole of our exports during a period when they were generally at ex- orbitant rates ! How infinitely more worthy of the attention of our citizens, and to be protected by our statesmen, than they have appeared ! How transcendently superior to that foreign com- merce, which has been fostered with so much care ; has excited J36 THE NEW OLIVE BRANCH. SO many collisions with foreign powers ; cost us so much for foreign embassies, navy, and war ; and entailed on us so heavy a national debt ! Again. Our farmers will be astonished to learn that the consumption of Philadelphia in food and drink, supposing the population 125,000 persons, is very nearly equal to the amount of all the eatable articles furnished by agriculturists, exported from this country to every quarter of the world. 125,000 persons, at a quarter dollar per day, or one dollar and seventy-five cents per week, consume to the amount of 218,500 dollars per week, or per annum . . . !gll,375,000 Total exports from the united states for 1819, of the following ar- ticles. Custom house valuation, gl05,055 563,470 454,558 114,838 21,113 13,944 3,552 815,072 103,581 54,084 3,047 11,642 37,034 72,600 38,253 24,759 6,500,000 241,940 608,720 812 4,968 273,015 33,138 2,142,644 182,324 135,369 Hams Pork Beef Cheese Sheep Hogs Poultry Indian Com Wheat Rye Barley Oats Beans Peas Potatoes Apples Flour Meal, rye Indian Buckwheat Ship stuff Biscuit Do. . Rice Butter Homed cattle lbs. 700,369 bbls. 28,173 bbls. 34,966 lbs. 1,148,380 8,445 2,324 1,184 bushels 1,086,762 do. do. do. do. do. do. do. barrels do. do. do. do. cwt. bbls. kegs tierces lbs. 82,065 67,605 3,047 23,284 21,162 48,400 76,506 8,253 750,660 48,388 135,271 203 828 54,603 44,184 76,523 911,621 347 Total of exported eatable articles furnished by agriculturists . . . . ^12,559,532 THE NEW OLIVE BRANCH. S37 CHAPTER XllT. Calumnious clamour against the manufacturers on the ground of extortion. Destitute of the shadow of foundation. Take the beam out of thine oxuti eye. Rise of merino xvool 3 or 400 per cent. Great rise of the price of merchandize after the declara- tion ofxvar. The most plausible argument used to defeat the applications of the manufacturers for relief, and to consign those who have hitherto escaped ruin, to the fate that has befallen so man)' of their brethren, is the " extortion''"' they are said to have practised during the late war, which, if they have an opportunity, they will, it is asserted, repeat. The justice of this accusation is as firmly believed by a large portion of the people of the united states, as if it were supported by ^^ proofs from holy zurit.^^ Per- sons whose interests are subserved by exciting hostility against the manufacturers, employ great zeal and address in dissemina- ting this prejudice. Unfortunately their efforts have been crown- ed with success. The accusation, it is true, has been refuted times without number ; but, regardless of the refutation, it is still advanced with as much confidence as if disproof had never been attempted, and indeed, as if disproof were impossible. This reproachful charge has been recentl) advanced by a res- pectable body of planters, whose opportunities and situation in life should have shielded them from faldng into such an error. The general meeting of delegates of the United Agricultural Societies of Virginia, in a memorial adopted on the lOth of Janua- ry, 1820, deprecate the idea of being placed " At the mercy of an association, who, competition being re- " moved, will no longer consider the intrinsic value of an article, *' or what price would afford a fair profit to the manufacturer, "but horv much the necessities of the consumer xvould enable them " to extort. Of this spirit xve had a siifficiejit specimen during " the latexuar xvith Great Britain.''"' This severe accusation is adduced by Thomas Cocke, W. J. Cocke, Roger A. Jones, "^ Edmund Ruffin, Nicholas Fanleon, Tiieophilus Field, J John Edmonds, Chai-les H. Graves, John Jones, and V-Esqi'S. George Blow, Richard Cocke, Henry Jones, { W. F. Ruffin, ,John Pegram, J When these gentlemen were thus denouncing " the extortion practised in consequence of the necessities of the consumer'' it is wonderful they did not pause a little and i-eflect on the price of fifteen dollars per cwt. which they received in 1816 for their 43 338 THE NEW OLIVE BRANCH. tobacco, in consequence of '•'•the necessities''^ of the shippers, whereby so large a portion of those shippers were ruined, and so many respectable families reduced from a state of affluence to penury and dependence ! They might also turn their atten- tion to the extravagant price of two dollars, and two dollars and a half per bushel for wheat, and eleven, twelve, thirteen, and fourteen dollars per barrel for flour. These reminiscences would have been rather malapropos, and deranged some of the flowery paragraphs of their memorial. Our own offences are easily forgotten. "They are marked in sand" — -while those of our neighbours are " engraven on marble." As the prejudice on this subject has produced the most dele- terious consequences, not merely on the happiness and prosperi- ty of the manufacturers generally, but on the power and resour- ces of the nation, I hope for a candid hearing, while I investigate it, and undertake to prove— 1 . That the charge is not only not true, but the reverse of truth ; that the rise of price was perfectly justifiable ; and that the shadow of extortion did not attach to the procedure. 2. That the charge of extortion would apply with infinitely greater force and propriety to the farmers, planters, and mer- chants, who in this case are the accusers, than it does to the manufacturers. The accusation has been more frequently predicated on the rise of the price of broad cloths, than of any other article. As It here presents itself in a tangible form, and subject to the talisman of figures, I shall therefore confine myself to this pro- minent and conspicuous case ; observing, en passant^ that the facts and reasoning apply equally to other branches. They all stand on nearly the same ground. In every case, in which a rise of price took place, it arose from causes similar to that which operated on broad cloth. Therefore if the charge be disproved in this instance, it falls to the ground on the whole ; just as when, during the late war, several vessels vv^ere captured in cir- cumstances exactly similar, the trial of one decided the fate of the rest. The facts of the case are as follows ; — superfine broad cloth was sold previous to the war at from eight to nine dollars per yard — during the war, it rose to twelve, thirteen, and fourteen. On this "■ extortion'''' the changes have been rung from New Hampshire to Georgia — from the Atlantic to the Mississippi. It is considered as a set off against, and justification of, the wide-spread scene of desolation, the sacrifice of capital, to the amount of millions, the ruin of hundreds of capitalists, and the extreme distress of thousands whose sole dependence is on the labour of their hands — on which congress have for years looked with unfeeling indifl^rence, without taking a single effectual step to relieve the sufterers, or to remove their sufferings. THE NEW OLIVE BRANCH. 339 The value of every manufactured article depends on the price of the raw material — the cost of workmanship — and the profit of the capitalist by whom it is produced. That a rise in the price of either or both of the two first will justify a rise in the price of the article, is too manifest to require proof* Now to the senseless and calumnious outcry against " extor- tion^^'' on this subject, it would be sufficient to state the simple tact, that the raw material experienced a most extraordinary rise, as will appear from the following statement of the prices at dif- ferent periods — Prices of Merino xvool. per lb 1812. 1814. May July Oct. May Aug. Nov. 1. 20. 1. 1. 29. 14. 75 cents. 75 to 100* 75 to 150* 300 to 400* 300 to 400* 301 > to 400* This alone would settle the question beyond the power of ap- peal. Let it be observed, that it requires two pounds of wool to make a yard of superfine cloth. Therefore the difference in the price of the raw material accounts for, and fully justifies the rise in the price of the cloth. Two pounds of wool in May, 1812, cost one dollar and fifty cents ; in May, 1814, they avera- ged seven dollars. It follows, that the per centage of profit was not so great on the cloth at fourteen dollars as at eight. I do not know the expense of workmanship ; but shall suppose it five dollars per yard. — Any other sum would answer equally well. 1812. 2 lbs. wool Workmanship Profit Price of cloth May 1. Profit about 20 per cent. 50 00 6 50 1 50 S8 00 1814. May 1. 2 lbs. wool Workmanship Profit Price of cloth . Profit 16| percent. 5t 12 a gl4f Wages rose considerably ; for however extraordinary it may seem to colonel Pegram and his friends, it is nevertheless true, *Grotjan's Free CuiTent. 1 1 have ass, med the wages the same in 1814 as in 1812 ; but as stated in the text, the)' ro.^ considerably in consequence of the g^eat demand for workmen. 1 waive tJie aavantage this would afford to the argument. 340 i-HE NEW OLIVE BRANCH. that a workman thinks he has as clear a right to raise jhis wages in case of an increased demand, as a planter has to raise the price of his tobacco or cotton in similar circumstances. There is, moreover, another item of considerable importance to be taken into view. Owing to the utter impolicy of our government on this point, in not affording adequate protection to the woollen manufacture, the business had been conducted on a very narrow scale previ- ous to the war. The establishments were erected after war com- menced, at an enormous expense, and under considerable disad- vantages. This alone would warrant the whole of the extra price, m the shape of interest, on the capital thus invested. I now proceed to prove, that had the woollen and other manu- facturers raised the prices of their fabrics, without any rise in the raw materials^ or wages, or without any extraordinary ex- pense of buildings, neither the farmer nor the merchant could justly censure them, without at the same time pronouncing their own condemnation. So far as respects the farmer, I might rest the question on the case stated, of the Merino wool. The rise on this article, from seventy-five cents to three and four dollars, in two years, was among the most extravagant advances ever known in the annals of trade. And if the charge of '" extortion''' would ever fairly lie against a rise in price, it would in this case indubitably. — Never was the admonition — " First cast the beam out of thine own eye — and then thou shalt see clearly to cast out the mote out of thy brother'' s eyeT more appropriate. Had the pharisee in the gospel reproached the publican with pride, he would not have been more culpable, than the farmer, who raised his wool three or four hundred per cent, and reproaches the manufacturer with " extort'iorC for raising the cloth, made of that wool, fifty per cent. Indeed in all the exuberant stock of human folly, there cannot be found any thing more extraordinary or extravagant. But the defence does notrest on this ground alone. It is cor- roborated by almost every article of agricultural produce, which has always risen in consequence of an increased demand. To remove all doubt, if doubt could have existed, I state from the Philadelphia price current the various prices of four articles at different periods, with the very extraordinary advances on them. Flour. 1809. Jan. 16. . . . perbbl. !S5 50 March 6. .... 7 50 1810. May 1. . . . . . 8 00 Aug. 1. .... 11 00 Tar. 1813. Jan. 9. . . . . . 2 10 May 8. . . . . 4 00 THE NEW OLIVE BRANCH. 341 Pitch. Haras. 1813. 1813. Jan. 9. May 8. Oct. 9. Jan. 9. May 8. Oct. 9. per lb. 50 50 uO 9i 11 14^ So much for the farmers. Let us now examine how far they are kept in countenance by the proceedings of the merchants. War was declared on the 18th of June, 1812. An immediate rise of price took place in every article in the market which was either scarce or likely to become so. Some were at once raised fifty, sixty, and seventy per cent., as may be seen by an exami- nation of the following table. Imperial tea Hyson Coffee . . . . White Havanna sugar, per cwt. Brown do. do. 1812. June 9. per lb. Si 30 14 12 96 151 75 75 1812. July 13 Si 87i 1 3S 20 18 50 16 00 All these advances took place in less than five weeks. Russia hemp Havanna molasses Souchong tea 1812. June 9. per ton ^242 50 56 50 1812. Aug. 10. S300 00 72 i 75 Salt, per bushel I 1812. 1813. May 1. Aug. 1. Oct. 1. 1814. Aug. 1. Oct. 1. Tin, per box 1812. May 1. Aug. 1 . Oct. 1. 1814. Aug. 1. Plaster Paris, per 1 ton 1812. June 1. Aug. 31. Oct. 5. Dec. 14. 85 1 35 2 25 3 00 28 OO 32 00 33 00 50 00 12 37 i 14 50 15 50 17 50 This was all regarded as perfectly fair, honest and honourable. There was not the shadow of " extortion" supposed to be in it- 342 THE NEW OLIVE RRANCJBC. The merchant, who raised his souchong tea fifty per cent, was so deeply engaged in clearing the manufacturer's eye of the " mote^'' that he quite forgot to ■■' take the beam out of his oty/z." Can the citizen, who buys flour at six dollars, and sells it oc" casionally in the West Indies for twenty, twenty-five, or thirty dollars, without a deep blush reproach the manufacturer with *' extortion''' for raising broad cloth, from eight to fourteen dol- lars, when the raw material rose so extravagantly ? or even had the price of the latter remained stationary ? Rise of price, in consequence of scarcity or increased demand, is, or is not, " extortion.^'' This is a dilemma, on the horns of w^hich the farmers, planters, and merchants are caught. If it be " extortion^'' they have been and are " extortioners''' in the fullest sense of the word ; as they always have and always do raise the price of their produce or merchandize, in consequence of scarci- ty or increased demand. Indeed, if this be extortion, all man- kind are extortioners — lawyers, doctors, apothecaries, house owners, ship owners, money lenders, planters, and farmers, with- out distinction ; for they all raise their prices in consequence of an increased demand. But if this be not extortion, as it certain- ly is not, then every man, woman, or child in the nation, from, the highest, proudest, haughtiest, and wealthiest, down to the lowest scullion, who has advanced the charge of '• extortion''* against the manufacturers, has broken the eighth command- ment of the decalogue, and " borne false xuitness against his neighbour.'''' I trust, therefore, that there is no man of liberality in the coun- try, who considers the subject with due attention, but will allow that the;,incessant clamour against the manufacturers for extortion, is illiberal and disgraceful to the age — utterly destitute of foun- dation — in direct hostility with that brotherly regard which fel- low citizens owe each other, and which is the surest foundation of harmony and happiness in a community ; and that it produces a system of conduct inconsistent with the soundest principles of political economy — as well as destructive to the permanent wealthy power, and resources of the nation. THE NEW OLIVE BRANCH. 343 CHAPTER XIV. The agricultural the predominant interest iii the imitecl states. Great advantages to agriculture from the vicinity of manufac- turing establishments. Case of Aberdeen. Of Harmony. Of Providence. Fall of lands the result of the decay of ?na7iufac- tures. As the agriculturists are now, and are likely to be for a centu- ry at least, the predominating interest in this countiy, and have a decided influence in its legislation, it is of immense impor- tance that they should form correct views on the system best calculated to promote the general welfare. And it is much to be regretted that the endeavours to persuade them, that there is an hostility between their interests and those ol their manufac- turing fellow citzens, have been but too successful. Never was there a prejudice much more unfounded, or more pernicious to their prosperity and to that of the nation at large. It is proved, (page 336) that the annual consumption of the city of Philadelphia in food and drink, amounts to about 11,000,000 dollars, all paid to the farmers, which is more than one-fifth part of all the domestic exports of the united states for the last year ; within ten per cent, of the whole of the articles of food exported within that year ; and above thirty per cent, of the average domestic exports of the nation for the last thirty years. To the farmer and planter the home market is incomparably- more advantageous than the foreign. Woeful experience proves that the latter is subject to ruinous fluctuations. Whereas the former is permanent and steady, little liable to vicissitude unless as aff"ected by foreign demand. It furnishes a certain sale for the farmer's vegetables, poultry, fruit, fuel, and various other ar- ticles, too perishable, or too bulky in proportion to their value, for exportation. The income from all these forms a most im- portant item in the prosperity of the farmer. This is true, even in small countries, as England, Ireland, and Scotland, of which every part is contiguous to, or not far distant from the advanta- ges of navigation. But it has ten-fold weight in a country like the united states, of which a large and important portion is from three to fifteen hundred miles distant from the emporium to which its productions must be transported before they are put on shipboard to be forwarded to a market. The difference, to these portions of this country, between dependence on a preca- rious foreign and on a certain domestic market, is probably equal to fifty per cent, of the whole profits of farming. 344 THE NEW OLIVE BRANCH. As theories, however plausible, are liable to great errors, un- less supported by the bulwark of facts, I presume that it cannot be unacceptable to the reader, to have these important views substantiated by facts of undeniable authenticity. I therefore sub- mit for consideration the case of the neighbourhood of Aber- deen, in Scotland, and that of the settlement of Harmony in the state of Pennsylvania. •" Have we not opportunities of observing every day, that in " the 7ieighbourhood of a ready market, no inducements are neces- *' sary to excite the common farmer to become industrious^ and " carry on improvements of every sort with success P A particu- " lar case occurs to me just now, that is so directly in point, that " I cannot resist the temptation of producing it, as an example " of the rapid progress with -which improvements in agriculture " are made xvhefi circumstances are favourable. "The town of Aberdeen HAS made great advances in trade *' AND manufactures WITHIN THESE THIRTY OR FORTY YEARS *' PAST. The number of inhabitants has increased greatly with- " in that period. Money has become more plenty there thanfor- " merly. Their manner of living is now more elegant and ex- " pensive ; articles of luxury have increased. In consequence " of good roads having become more common, horses and wheel- *' carriages have also become extremely numerous. On all " which accounts, the demand for fresh vegetables has greatly in' " creased in that place within the period above mentioned. " But on account of the particular situation of that town, it " was a matter of some difficulty to augment the produce of the " fields in that neighbourhood, and supply the daily increasing " demand for these. This city is placed in the midst of a country " that is naturally the most sterile that can possibly be imagined. " For, unless it be a few hundred acres of ground that lie between *' the mouths of the rivers Dee and Don, close by the town, there " xvas not an inch of ground for many miles around it^ that could " supply the inhabitants xvith any of the necessaries of life. On " the east is the German Ocean. On the south the Grampian " mountains come close to the river, terminating in a head-land *' on the south side of the harbour, called the Girdle Ness : and " on the west and north, it is environed for many miles with an " extended waste, the most dismal that can be conceived, in " which nothing can be discovered but large masses of stone " heaped upon one another, interspersed here and there with a " few bushes of starved heath, or disjoined by uncomfortable " bogs and spouting marshes, the most unpromising to the views " of the farmer that can possibly be imagined. " But what is it that human industry cannot perform ! what " undertaking is too bold for man to attempt, when he has the '■'■ prospect of being repaid for his labour! Even these dismal THE NEW OLIVE BRANCH. 34S " wastes it was imagined, might be converted into corn-fields. " The ground was trenched ; the stones were blasted by gun- " powder, and removed at an immense expense ; manures were " purchased : and thousands of acres of this sort of ground are ** noiv waving" rvith the most luxuriant harvests^ and yield a rent *^ from Jive to eight pounds sterling per acre. ** In any other part of the world that I have seen, it would be " reckoned impossible to convert such soils to any valuable use; *' and the most daring improver that I have met with any where " else, would shrink back from attempting to cultivate a field *' which an Aberdeensman would consider as a trifling labour. "Long habit has familiarised them to such arduous undertakings " — undertakings which could not be attempted any where else ; " as. unless in such a particular situation as I have described, *' the improver could never be repaid. For in what other part "•' of Europe could a man lay out one hundred pounds sterling, or *' upwards, on an acre of ground, before it could be put under " crop, with any prospect of being repaid ? yet this is no uncom- " mon thing in that neighbourhood. " Nor is this all : For to such a height is the spirit for improve- *' ment risen in that part of the world, that they are not only " eager to cultivate those barren fields, but even purchase these " dreary wastes at a vast expense for that purpose. The last *' spot of ground of this sort that was to be disposed of in that " neighbourhood, was feued off by the town of Aberdeen in the "year 1773, for ever, at an annual quit-rent, or, as we call it, *-*■ feu- duty ^ of thirty-three or thirty-four shillings sterling per " acre, although it was not then., and never could have been -worth " six pence per acre., if left in its native state — nor could be con- *' verted into corn-ground but at an expense nearly equal to that " above-mentioned. " Could I produce a more satisfactory proof, that A GOOD « MARKET WILL ALWAYS PRODUCE A SPIRITED " AGRICULTURE ?"* To this Scotch case, which is nearly as strong and conclusive as the mind can conceive, I shall add a more recent American one, which has a peculiar interest. The settlement at Harmony, in the state of Pennsylvania, was begun in the fall of 1804, and is probably the only settlement ev- er made in America, in which from the outset agriculture and manufactures proceeded hand-in-hand together. The progress to wealth and prosperity, therefore, has been far beyond any previous or subsequent example in this country. " In 1809, they built a fulling mill, which does a great deal of " business for the country, a hemp mill, an oil mill, a grist mill, ♦ Anderson on the means of exciting a spirit of National Industrj', p. 6o. 44 .346 THE NEW OLIVE BRANCH. *' a brick warehouse, 46 by 36 feet, having a wine cellar com- *' pletely arched over ; and another brick building of the same *' dimensions. A considerable quantity of land was cleared. — *' The produce of this year was 6000 bushels of Indian corn ; *' 4500 bushels of wheat ; 4500 bushels of rye ; 5000 bushels of " oats ; 10,000 bushels of potatoes ; 4000 lbs. of flax and hemp ; " 100 bushels of barley brewed into beer ; and 50 gallons of " sweet oil, made from the white poppy, and equal to the import- *' ed olive oil. Of this produce they sold 3000 bushels of corn, " 1000 bushels of potatoes, 1000 bushels of wheat ; and they dis- ^' tilled 1600 bushels of rve. " In 1810, a wool-carding machine and two spinnmg jennies " were erected for the fabrication of broad cloth from the wool " of merino sheep. A frame barn was built, 100 feet long, "and a brick house built, to accommodate twenty weavers' "looms."* " After breakfast, we visited the different branches of manu- "factures. In the wool loft, eight or ten women were employed " in teazing and sorting the wool for the carding machine which " is at a distance on the creek. From thence the roves are i" brought to the spinning house in the town, where we found *' two roving billies and six spinning jennies at work. They <" were principally wrought by young girls, and they appeared " perfectly happy, singing church music most rnelodiously. In " the weaving house sixteen looms were at work, besides several "warpers and winders. "| " After dinner we visited the soap and candle works ; the dye " works ; shearing and dressing works ; the turners, carpenters, " and machine makers ; and, finally, we were conducted through " the warehouses, which we found plentifully stored with com- " modities ; among others, we saw 450 pieces of broad and narrow " cloth, part of it of merino xvooly and of as good a fabric as any " that ever was made in England. We were told, that they coidd *■'• sell the best broadcloth, as fast as made, at ten dollars per " yard:'\ "The society now [1811] consists of about 800 persons, and " the operative members are nearly as follow : one hundred far- " mers ; three shepherds ; ten masons ; three stone-cutters ; three *' brickmakers ; ten carpenters ; two sawyers ; ten smiths j two " wagon makers ; three turners ; two nailors ; seven coopers ; " three rope makers ; ten shoemakers ; two saddlers ; three tan- " ners; seven tailors ; one soap boiler ; one brewer ; four distil- *" lers ; one gardener ; two grist millers ; two oil millers ; one "butcher; six joiners ; six dyers, dressers, shearers, &c. oneful- " ler; two hatters ; two potters ; two warpers ; seventeen weav- * Melisk's Travels, ii. 68. f Idem, 70. % Idem, 71. ■PHE NEW OtlVE BRANCH. 34^ '' ers ; two carders ; eight spinners ; one rover ; one minister of " religion ; one schoolmaster ; one doctor ; one storekeeper, with " two assistants ; and one tavernkeeper, with one assistant."* The original stock, in 1804, was 20,CX)0 dollars, which the settlers expended in the purchase of land, and in supporting themselves till they commenced their operations. And, in 181 T, their property amounted to the wonderful sum of 220,000 dollars. " 900 acres of land »90,000 " Stock of provisions 2.5,000 " Mills, machinery, and public buildings . . 21,000 *' Dwelling houses 18,000 " Horses, cattle, hogs, and poultry . . . 10,000 *■'■ 1000 sheep, one-third of them merinoes,of which one ram cost 1000 dollars 6,000 " Stock of goods, spirits, manufactures, leather, imple- ments of husbandry, Sec. &c. .... 50,000 S220,000t To this delightful picture of the Islessed effects of a judicious distribution of industry, the statesman ought to direct his eyes steadily. It holds out a most instructive lesson on the true poli- cy to promote human happiness, and to advance the wealth, pow- er, and resources of nations. The history of the world may be examined in vain for any instance of such rapid strides made by any body of men, wholly unaided by bounties, premiums, loans, or immunities from government. The Harmonists were true practical political economists. They did not, like so large a portion of the rest of the people of the united states, lavish their wealth on the manufactures of a distant hemisphere, nor buy abroad cheap those articles which they could procure at home. In the sound and strong language of Mr. Jefferson, they " pla- " ced the manufacturer beside the agriculturist ;" and they have reaped the copious harvest which such a policy cannot fail to secure. One such practical example outweighs volumes of the visionary theories of those closet politicians, who are the dupes of their heated imaginations. Mr. Gallatin's report on manufactures, dated April, 17, 1810, contains an important statement of the situation of a manufacto- ry in Providence, Rhode Island, which sheds great light on this subject, and which is entitled to the most serious attention of the agriculturists, as placing beyond doubrthe advantages they derive from the establishment of manufactories in their neigh- bourhood. * Melish's Travels, ii. 77. fldem, 80. 348 THE NEW OLIVE BRANCH. In this manufactory there were employed, males - - 24 Females 29 And besides the above, there were employed for the estab- lishment, in neighbouring families, males - ' - 50 Females _>------ 75 178 Thus, out of one hundred and seventy-eight persons, there were one hundred and four females. The report is so far defi- cient, that it does not detail the respective ages of the work peo- ple ; but judging from the state of other manufactories, we may assume that at least half of the whole number were children. If this be admitted, it will follow, that there were men - 37 Women '- -- 52 Male and female children - - - - - - 89 178 To the farmer this statement presents itself in a peculiarly striking point of light. Of the whole number of persons to whom this manufactory afforded employment, more than two- thirds belonged to the circumjacent farm-houses, who were thus enabled to gather up fragments of time, which would otherwise have been inevitably lost. It is probable that the profits of their labour were nearly equal, perhaps superior to the profits of the farming. I might cite the cases of Brandy wine, Wilmington, Pittsburg, Providence, Lancaster, and a hundred other places in the united states, where the establishment of manufactories, by affording an extensive and advantageous market to the farmer, doubled and trebled the price of the lands in their neighbourhood— and in- creased in an equal degree the comforts and prosperity of the farmers. And on the contrary, numberless instances are to be met with, in which the recent decline of manufactures has re- duced the lands to one half, one third, and in some places one fourth, of the previous price. The average reduction of the price of land in the neighbourhood of Pittsburg is above one half of what it was bought and sold for in 1813, 14, and 15. The farmers of the united states have been induced to oppose protection to their manufacturing fellow citizens, lest they should be obliged to purchase domestic, at a higher rate than imported manufactures. This erroneous policy has carried its own pun- ishment with it. The reduction in the price of the farmer's pro- THE NEW OLIVE BRANCH. 349 duce, which can be obviously traced to the prostration of the manufactories, has in many cases been quadruple the saving in the price of the articles he purchased. I take as examples, raw wool and woollen cloth, and suppose that the farmer could buy foreign cloth for six dollars, ancl would have to pay, in conse- quence of protecting duties, nine for American — a difference that never existed in regular trade. The prices of goods pur- chased at auction, cannot with propriety be taken into account. They baffle all calculation. Merino wool now sells for fifty cents per pound : of course it would require twelve pounds to pay for a yard of British cloth. But had the woollen manufacture been duly protected, wool would be at least one dollar and a quarter. Thus seven pounds of wool would pay nearly for a yard of domestic cloth, at the presumed advance of price. Let it be added, moreover, that the farmer would probably sheer twice or three times the quantity of wool, were the price one dollar or one dollar and a quarter, that he does at present : for had the woollen manufacture been protected, the merino sheep in which such immense sums were invested, would have been preserved, instead of so large a portion of them being con- signed to the slaughter-house. Believing that the prejudices prevailing on this subject have done more injury to this country, and more retarded its progress than all the wars it ever carried on, from the landing of " the Pil- grims" to the present hour, I make no apology for adding ano- ther instructive quotation from the respectable writer who figures so largely at the commencement of it. Would to heaven that those farmers and planters who form the majority of the legisla- ture of the united states, were duly impressed with the sound- ness of his statements, and predicated the laws of their country on the useful lessons they furnish ! The united states would then present a different spectacle from what they do at present to their friends and enemies — a spectacle of gratulation to the former, and of mourning to the latter. " Those xvho wish to make agriculture Jiourish in any countrif^ " can have no hope of succeeding in the attempt but by bringing *' commerce and inanufactures to her aid ; xvhich^ by taking from " the fanner his superfluous produce^ gives spirit to his operations^ " and life and activity to his mind. Without this stimulus to " activity, in vain do we use arguments to rouse the sluggish in- *' habitants. In vain do we discover that the earth is capable of " producing the most luxuriant harv^ests with little labour. Our *' own abundant crops are produced as undeniable proofs of this " in vain. But place a manufacturer in the neighbourhood y xvho " wi// buy every little article that the farmer can bring to market., " and he zvill soon becofjie indmtrious — the most barren fields will 350 THE KEW OLIVE BllANClJ. " become covered with some useful produce. Instead 6f list- " less vagabonds, unfit for any service — ^the country will abound " with a hardy and robust race of men, fit for every valuable " purpose : and the voice of festivity and joy be heard in ever)- " corner, instead of the groans of misery and the sighs of discon- " tent."* With one more extract from another work of considerable re- pute, I conclude this chapter. " If a line be drawn upon the map of England, across the '' country from Sunderland to Bristol, all the counties on the " west of this line, will be found to contain coal. Formerly *' these were the least Valuable districts, and the parts of the " country which were the most thinly populated. Hence, when " the constitution of the British parliament was established, the '' greatest weight of representation was given to the rich coun- " ties on the other side of that line. Whereas, now, owing- to " the establishment of manufactures, the coal counties have become " the most populous and wealthy : and the agricultural districts *' have either been comparatively deserted, or at least have not " much increased in population. " This accounts in some measure for the inequality of our re- " presentation, and shows very distinctly the value of our mines " of coal, and that by the establishment oj' manufactures, even the " most sterile and forbidding- district may be rendered populous, '-^flourishing and opulent.''''] CHAPTER V. Qcneral reflections on commerce. Highly advantageous when con- ducted on terms of reciprocity. Commerce of the united states carried on upon very unequal terfiis. Has produced most inju- rious consequences. Tables of exports. Estimates of theprojits- of commerce. Pernicious consequences of the competition of our merchants in the domestic and foreign markets. The ruin of so many of them the result of the excess of their numbers. The extent and value of the commerce of the united states have long been prolific themes for orators in congress, and writers of newspapers — and it appears generally assumed to be only se- cond to our agriculture, and far beyond manufactures in impor- tance. It has had incomparably more attention bestowed on it by our government, not only than either agriculture or manu- * Anderson on National Industry, p. 61. t Parkes' Chemical Essays, Vol. II. p. 361. THE NEW OLIVE BRANCH. 351 factures but more than both united. A candid investigation of those sounding pretensions, whereby, if correct, they may have the seal of certainty imprinted on them, or, if otherwise, may be reduced to their proper standard, cannot fail to be interesting. That commerce, properly conducted, on fair and reciprocal terms, is highly beneficial, has never been doubted by any sound mind. It tends to civilize, and increase the comforts of the great family of mankind. But that it may be, and is occasionally, very injurious, is equal- ly clear. When one nation receives only luxuries from another, and pays for them in necessaries of life, or specie, or in raw ma- terials which would find employment for its own people, who are thus divested of employment, it is eminently pernicious. To make the matter more clear, I will supppose that England were to furnish France with her raw wool, lead, tin, iron, flax and hemp, and to receive in return Merino shawls, silks, satins, pearl necklaces, diamond watches, &c. the most devoted advo- cate for commerce would allow this species of it to be extremely pernicious. Again, If England furnished wool, flax, hemp and iron, and received in return even necessary articles, such as broadcloths, linen, duck, hard-ware, &c. it would be highly disadvantageous, as she would give the produce of the labour of five, ten, or twen- ty persons for that of one. But such a commerce would be transcendently pernicious, if England had a large portion of her population wholly unemploy- ed, and capable of manufacturing those articles for her own con- sumption. If this reasoning be correct, as applicable to Great Britain, it is difficult to prove why the system should not be equallj^ perni- cious to the united states. It is as absurd, as impolitic, and as cruel to our citizens, who are suffering for want of employment, and who could manufacture cotton goods for us, to export such quantities of raw cotton, and receive cambrics and muslins in re- turn, as it would be for England to export her wool, and import her woollen manufactures. " Strike^ but hear^'' said a general of antiquity, about to offer some unpalatable opinions to a friend. As the views I am going to take of the subject of commerce, however true, are likely to be as unpalatable to the merchants as the opinions of the ge- neral to his friend, I say to them " strike, but hear." I shall attempt to prove — 1. That a large proportion of the productive manufacturing industry of this country has been sacrificed to our commerce, 352 THE NEW OLIVE BRANCH. 2. That the commerce of the united states has been construct- ed upon very unequal terms — and that it has produced most in- jurious results upon the national prosperity. 3. That its extent and advantages have been overrated. And 4. That the numerous bankruptcies among our merchants have chiefly arisen from the w^ant of protection to manufactures. These views are so repugnant to the feelings and prejudices of a numerous class of citizens, that I can scarcely hope for a fair discussion. More than half my readers will at once pro- nounce me deranged — and be disposed to throw the book into the fire. Again, therefore, I say, " strike, but hear." I. Sacrifice of productive industry. To prove the sacrifice of productive industry, I refer the reader to the tariffs of 1789,* 1791, 1792, and 1804, where he will find that the duties on seven-eighths of the manufactured goods imported into this country were originally at five — then seven and a half — then ten — then twelve and a half — and at length fifteen per cent, the advance not the result of the applica- tions of the manufacturers for protection, but to meet the in- creasing demands of the treasury. Hence, I repeat, with every possible advantage of water power, raw materials, machinery, talents, enterprize, industry, and capital, until the declaration of war, three-fourths of the clothing of the inhabitants of all our towns and cities were of foreign fabrics — and the wealth of the nation was lavished to support foreign workmen, and foreign governments, while we had hundreds, nay thousands of citizens capable of supplying them, who were driven in many cases to servile and far less profitable labour. The experience of our late war, and the immense spring it gave to the industry and manufactures of the country, prove that one-half the protection afforded to the merchants in the China trade would have enabled our citizens to establish the cotton and woollen branches on a liberal scale, and saved many millions of dollars to the country annually. This was unhappily sacrifi- ced by the system of low duties, which was advocated by the merchants, and adopted by congress, in order to promote the in- terests of commerce. The influence of the former has been suc- cessfully exerted at all times, to prevent prohibitions and pro- hibitory duties. The unsoundness of the policy this country has pursued, by which it has been virtually placed in the situation of a colony to * See chapters III. and IV. THE NEW OLIVE BRANCH. 353 Great Britain and the other manufacturing nations of Europe, apriars palpable from the following considerations: So far as respects the cotton and woollen branches, on a large scale, we were almost as completely excluded from them by the impolicy of our tariff until 1812, as if a law had been passed to render their establishment penal. This declaration may sur- prize — but is nevertheless susceptible of proof. The two strong facts already stated — that with all our advantages for the manufacture of cotton we consumed only 3C^0,000 pounds in the year U05, although we exported about 38,000,000 — and that in 1812, we were so dependent on Europe for woollens, that we had not a suppl) of blankets for our army, nor were our manu- factories at that time in a situation to make provision for the emergency — place the matter beyond doubt. He that will not be convinced by these facts, of the ruinous policy we pursued — and the wanton waste of our resources, would not be con- vinced, ""though one were to rise from the dead." The tariff of 1789, which established the five percent, duty, might as well have had the following preface, as the one which was prefixed to it : '* Whereas, although this country has become independent of " Europe in its go\ ernment, and by its arms — it is expedient •' that it should still continue in the colonial state so far as res- *' pects its supplies of all the essential articles for comfort and " convenience : " Therefore be it enacted, &c. that the duties to be levied on " the importation of manufactures of cotton, wool, linen, pottery, ** lead, iron, steel, brass, and wood, be no more than live per cent. " ad valorem." However ludicrous this may appear, it only gives body and substance to the virtual effects of the tariff. II. In order to prove my second position, I subjoin a view of our exports and imports, and a statement of the various species of the former for fifteen years. Our exports have consisted chiefly of four different species of articles — 1. Necessaries of life. 2. Raw materials, which we ourselves could have manufac- tured, and which constituted one-fourth part of our exports. 3. Naval stores, of indispensable necessity for the nations which purchased them. 4. The luxury of tobacco, which is about one-eighth part of the whole amount. Our imports consist principallv of — 45 354 THf. NEW OLIVE BRANC|I. 1. Tea, cpflrpe, wines, spices, cocoa, chocolate, almonds, rai- sins, &c. which we do not raise, and which of course dP not af- fiect our national industry. 9. Spirits, sugar, cotton, indigo, hemp, malt, lead, &c, which interfere with the best interests of our farmers and planters. 3. Manufactures of cotton, wool, leather, iron, &c. &c. which interfere with the interests of our manufacturers, and impoverish the nation, and of which we could, by proper protection, supply ourselves with the greater part. 4. Luxuries, which tend to introduce extravagance, and de- prave our morals. Domestic exports for ffteen years ^ from 1803 to ISlfjinclui^ive.*^ Cotton ....... ^154,1 r9,U 7 Vegetable food 192,564,368 Lumber, masts, &c. 52,796,000 Tobacco 74,768,000 Animal food and animals .... 34,712,56Q Dried salt fish . . . . . . 16,915,256 Pickled fish 4,155,419 Whale oil and bones . . . , . 2,819,528 Spermaceti oil and candles • . . . 1,658,320 ginseng, peltry, &c. 8,130,305 Naval stores 6,579,931 Pearl and potashes 13,990,000 Manufactures . . . . , . . 27,270,000 Unpprtj^in ..... 4,836,000 ... , -, jj ^595,374,804 Average . . . . . ^39,691, 653 A cursory glance at our exports, and a comparison of them with our imports, will satisfy the reader, that few nations have carried on con^merce to more disadvantage, than we have done a large portion of ours. We have exchanged the most valuable productions of nature in the rudest state, with the least possible degree of labour— rand received in return every species of mer- chandize in its most finished form — of which labour constituted two-thirds, three-fourths, four-fifths, and often nine-tenths of the value. This more particularly applies to cotton, which we ^lave shipped ^t ai\ average of about twenty-five cents per pound, except Sea Island, and received back at an advance of five foldr^H and, in the case of the fine articles ,of ten fold— "thus enabling for- eign nations to pay for the wllple crop with one-fifth part of it — * Seybert, 146-7. THE NEW OLIVE BRANCH. S53 jind wantonly throwing away the remaining four-fifths. More* over a large portion of the manufacture being performed by ma- chinery, we have given the labour of twenty or thirty persons for one, Never was there a system more admirably calculated to stunt the growth of a nation ; to destroy the effect of the ad-* vantages bestowed on it by nature ; and to render its inhabitants hewers of wood and drawers of water to other nations. One view of this subject is so appalling, that it will make the heart ache of every man who has any regard for the real inter« ests of this country, or a wish to advance its wealth, power, and resources. The increase by manufacture of the value of the raw material of cotton, was in 1815, according to Colquhoun, about five-fold.* Let us see the operation of this portion of our commerce tested by that scale. We exported, it appears, in fifteen years, cotton to the amount of . . . ^154,179,117 This, according to Colquhoun, produced . §770,895,585 Leaving to foreign nations the enormous profit of S6l 6,71 6,468 Or an annual average of . . . !S41, 114,431 Two-thirds of which we might by a sound policy have re- tained among ourselves. There can be no doubt that Great Britain defrayed the whole expense of the war against us by the profits she derived from this single article, in a few preceding years. Thus our short-sighted policy tends to aggrandize, at our own expense, foreign nations with which we have had, and may again have, most perilous collisions. It now remains to give a general but concise view of the inju- rious effects produced by our commerce, I shall confine my- self to facts of such universal notoriety as to preclude contro* versy. Commerce has — 1. In return for our great raw material, cotton, to the amount of many millions of dollars annually, : deluged us with immoderate quantities of cotton and woollen and other manu- factures, whereby millions of capital invested in manufac- turing establishments have been lost — hundreds of the proprie-' tors rumed — and thousands of workmen reduced to idleness, and exposed to the lures of dissipation and crime. 2. Subjected us to an expense for foreign intercourse and for the Barbary poAvers to the amount of nearly 12,000,000 of dollars in twenty years. f • See Colquhoun on the wealth, power, and resources of the British Empire, page 91. t Seybert, 712, 713. 356 THE NEW OLIVE BRANCH. 3. Bankrupted an immoderate proportion of those who pur- sued it. 4. Caused a war, by which there is entailed on us a heavy debt of nearly 80,000,000 of dollars, and an annual interest of about 4,500,000 doll *rs. 5. Rendered a navy necessary, which creates an expense of above 3,500,000 dollars for the present year. 6. Given a prodigious spring to luxury and extravagance, by th# superfluous articles it has introduced among us. 7. Drained away the circulating medium of the country, whereby every kind of business is paralized, and the nation im- poverished. 8. Rendered us dependent on foreign nations for many of the comforts, and even some of the necessaries of life. That these consequences have resulted from our commerce, I trust will be admitted. They are considerable drawbacks on its advantages, which ought to be immensely great to countervail them. It behoves us then to examine the extent and value of this commerce, so highly prized and so deai ly bought. III. I now proceed to my third point, to prove that the exteftt and advantages of our commerce have been greatly overrated. As much as possible to simplify a complicated subject, I shall consider the commerce of the united states under five several heads. 1. The exportation of our superfluous productions. 2. The importation of necessary supplies. 3. The carrying trade. 4. The coasting trade. 5. The shippmg. The first is beyond comparison the most important. In it the whole nation is deeply interested. Much of our prosperity depends on procuring suitable markets for our surplus produc- tions. This affords a strong stimulus to industry, which would otherwise pine and languish. To enable the reader to judge correctly ©n this subject, I an- nex a table of our exports from the organization of the govern- ment. For the first six years there was no distinction between foreign and domestic. I have assumed that there were two- fifths of the former, and three-fifths of the latter, which is about the average proportion of the whole of the subsequent period. THE NEW OLIVE BRANCH. 357 Exports from the United States from 1790 to 1819, inclusive.^ Year. 1790 1791 1792 1793 1794 1795 1796 1797 1798 1799 1800 1801 1802 1803 1804 1805 1806 1807 1808 1809 1810 1811 1812 1813 1814 1815 1816 1817 1818 1819 Domestic. Foreign. tl2,123,094 fl 1,407,225 f 12,451,860 115,665,744 119,815,741 128,793,684 40,764,097 29,850,206 28,527,097 33,142,522 31,840,903 47,473,204 36,708,189 42,205,961 41,467,477 42,387,002 41,253,727 48,699,592 9,433,546 31,405,702 42,366,675 45,294,043 30,032,109 25,008,152 6,782,272 45,974,403 64,781,896 68,313,500 73,854,437 50,976,838 :t8,082,u26 t7,604,816 *8,301,238 no,443,828 +13,210,492 +19,195,788 26,300,000 27,000,000 33,000,00C 45,523,000 39,130,877 46,642,721 35,774,971 13,594,072 36,231,597 53,179,019 60,283,236 59,643,5581 12,997,414] 20,797,531 24,391,295 16,022,790 8,495,127 2,847,845 145,169 6,583,350 17,138,556 19,358,069 19,426,696 19,165,68.3 Tot..!. ^1,058,800,898 ^710,519,854 20,205,156 19,012,U41 20,753,098 26,109,572 33,026,233 47,989,472 67,064,097 56,85u,206 61,527,097 78,665,522 70,971,780 94,115,925 72,483,160 55,800,033 77,699,074 95,566,021 101,536,963 108,343,150 22,430,960 52,203,233 66,757,970 61,316,833 38,527,236 27,855,997 6,927,441 52,557,753 81,920,452 87,671,569 93,281,133 70,142,521 §1,769,311,698 Average g35,293,363 ^23,680,000 §58,977,056 The surplus productions of the united states, the great and legitimate basis of our foreign trade, are, as appears from this table, far below what might have been expected from the popu- lation, and the resources of the country. They average, as we see, only about 35,OCK),000 of dollars, or about S,5()0,000 pounds sterling per annum, from the organization of the government to the close of the last year. The average population of that period has been about 6,500,000 souls. It therefore appears that we have exported only about five dollars and a half per head of our whole population. This nearly corresponds with our recent ex- perience. During the last five years we exported of domestic productions about 305,000,000 dollars — or 61,000,000 per annum. Our population during this period has probably averaged about * Seybert, 93. -j- Estimated at three-fitths of the whole. + Estimated at two-fifths. 358 TttE NEW OLIVE BRANCH. 9,500,000 souls ; which gives an export of only six dollars and a half per head. It is thus indubitable that this department of our commerce, obviously the most important, has been vastly overrated, and sinks into insignificance, on a comparison with our domestic trade, which, as may be seen (page 335) is nearly fifteen hun- dred per cent, beyond it. The food and drink of Philadelphia^ New York, Boston and Baltimore, supposing them to contain 400,000 souls, at a quarter of a dollar per head daily, amount to more than the average of the whole of our domestic exports ! 400,000 persons at a quarter of a dollar per day, consume per annum . . . jg36,500,00O Yet there are hundreds and thousands of citizens of the uni- ted states unalterably convinced that the united states owe nearly all their prosperity, all their improvements, all their wealth, to commerce ! ! I have in vain sought for a general statement of our imports. It is not to be found either in Seybert or Pitkin. The former, however, gives one for seven years, from 1?'95, to 1801, inclu- sive, viz. 1795 - - - - - ^69, 756,258 1796 ' - ' ' - - 81,436,164 1797 - - - - - 75,379,406 1798 - - - - - 68,551,700 1799 - - - - - 79,069,148 1800 - . . . . 91,252,768 1801 - - - - - 111,363,511 ^576,808,935 Average - - . - g82,401,276 It is difficult to calculate the amount of foreign goods consu- med in this countr)'^. The foreign exports for the seven years above stated, amounted to 236,792,386 dollars. Deducted from the above sum of 576,808,935 dollars, there is, for that period, a balance for home consumption of 34v),0 16,549 dollars, being an average of above 48,000,000 dollars annually. But during this time our commerce was far more flourishing than in other years. I shall, therefore, assume an average consumption of foreign merchandize of 40,000,000 per annum, for the 30 years from 1789 to 1819, which will not be regarded as far from the fact. Dr. Seybert has hazarded a calculation, that the profits ol Havigation, are at the rate of fifty dollars per ton — and he there- THE NEW OLIVE BRANCH. 359 fore sets down an average annual profit of 34,459,350 dollars ! which would amount to 1,(>33, 780,500 dollars in thirty years ! It is easy to perceive how extravagantly erroneous this calcu- lation must necessarily be. A vessel of three hundred tons would make, by freight alone, a profit to her owner annually of 15,000 dollars. Yet many of our merchants have had two, three, four, five, and six vessels of this size constantly employ- ed for years — have not lived extravagantly — and yet have finally become bankrupts. Were the doctor's statement correct, the great body of ship- owners would have become as wealthy as the members of the Medici family. Ten per cent, is regarded as a fair average of the profits of commerce. For freight I shall assume an equal sum. Hence is deduced the following result — Average annual domestic exports - )g35,293,363 Foreign goods consumed here, estimated at 40,000,000 gr5,293,363 Ten per cent, profit - - - 7,529,336 Add an equal sum for profit on freight - 7,529,336 Total ... - ^15,058,672 The carrying trade is far less important. Without much par- ticipation in it, the nation might have enjoyed, and may still en- joy, a most enviable state of prosperity. And it will probably appear, in summing up its advantages and disadvantages, dur- ing the whole of our career, that the latter at least equipoise the former. To form a correct decision on this point, it is necessary to as- certain its extent. It consists of two distinct branches. In the first, the foreign merchandize m trajisitu touches at our ports. In the second, the voyages are made from one foreign port to another. Of the first branch we have an accurate account. The trea- sury returns distinguish between the exports of foreign and do- mestic articles. But of the second we can only form an estimate. The foreign exports from the united states, as appears by the preceding table, (page 357) have averaged about 23,680,000 dollars per annum for thirty years. It is probable that the other branch of the carrying trade is about one half this amount. Some intelligent merchants whom I have consulted, estimate it at from 10 to 15,0(X),000 of dollars annually. But to afford the utmost latitude to the contrary side of the question, I shall suppose it equal to the first branch. 360 THE NEW OLIVE BRANCH. Thus, then, stands the account of the carrying trade for 30 years. Foreign exports . - _ ^23,680,000 Voyages from one foreign port to another, estima- ted at - - - - - 23,680,000 ^47,360,000 Profit, ten per cent. - - - ;S4,736,OuO Add an equal profit for freight, - - 4,736,000 Total profit of carrying trade - - §9,472,000 Summary. Profits of trade in exports, and in imports for home consumption - - - - jgl 5,058,672 Of carrying trade - - - 9,472,<;00 Coasting trade, supposed - - 4,000,000 Average for 30 years, §28,540,672 These profits are the utmost that can be claimed on the most liberal calculation. But I must observe that it is difficult to conceive that half of them could have ever accrued j as a very large portion of the merchants who are supposed to have ac- quired them, have been reduced to bankruptcy. This strong fact is utterly incompatible with the idea of such profits, and I am persuaded would warrant a reduction of fifty or sixty per cent, of the amount. The offsets have been immense. Shipwrecks — falling mar- kets—and depredations to the amount of probably one hundred millions by the belligerents, under the various orders in council, decrees, &c. The aggregate of all these would probably amount to thirt}^ per cent, on the assumed profits. But even admitting that the whole sum of twenty-eight mil- lions has been gained annually by commerce, it is worth while to consider whether it has not been rather a dear purchase. It has cost us from 1796 to 1815 — For foreign intercourse - - - - §9,615,140 Naval department - - - - - 52,065,691 Barbary powers ----- 2,349,568 War debt - 78,579,022 § 142,609,421^ Average per annum § 7,130,471 *Seybert 713, THE NEW OLIVE BRANCH. 361 The expenses chargeable to this account at present, and like- ly to continue, are — Interest on war debt of S 78,579,022 - - ^4,71 4,741 Secretary's estimate for the navy, 1820 - - 3,527,600 Per annum $ 8,242,341 This is above twenty-five per cent, in perpetuity on those profits of commerce, which are .supposed to have accrued during the whole of the period in which it had every possible advantage that could be desired by its warmest advocates. It is, moreover, above twenty per cent, of the whole average amount of the ex- ports of the country, embracing the period in which our staples commanded exorbitant prices, which we aie never again likely to realize. I therefore confidently rely, that those who have condescend- ed to " A^flr," though they may have '' struck^'' will, however reluctantly, acknowledge that at the touch of the talisman of truth, the boasted advantages of commerce have greatly dimin- ished in amount — and that, however valuable it truly is, it has indubitably cost the country more than it was intrinsically worth. In taking an account of the numerous offsets — the collisions with the belligerents — the chief part of the expense of the navy — our war — the war debt,-— and its interest — it would be unfair not to draw a line of distinction between the diffeient branches of commerce. That important one which consists in the ex- portation of our surplus productions, and procuring necessary supplies in return, ought certainly to be exonerated from any portion of these heavy items. It might be carried on for a cen- tury, without producing any of those consequences. They have sprung almost altogether from the extraneous trade in the co- lonial productions of the belligerents, which arose from the general state of warfare in Europe, and from the cupidity with which commerce was pursued by our merchants. If this point of view be correct, then the account is reduced within a narrow compass. It may be useful to hazard a calculation on the present and probable future profits of commerce, in order more fully to prove my position, that it has cost too dear* The domestic exports of 181 9, were - - g 50,976,838 Foreign exports ------ 19,165,683 Foreign goods consumed here, in 1819 suppose - 60,000,000 % 130,142,521 46 362 THE NEW OLIVE BRANCH. As our markets have stood lately, a profit of eight per cent, is a large allowance - _ _ - 10,41 1,40J Pr- sent profits on freight and carrying trade - 2,000,000 Coasting trade 3,000,000 $ 15,411.401 Thus it appears, that for every dollar of the present gain of the merchants by commerce, the nation at large pays above fifty cents of tax entailed on it by that commerce ! I now invite the attention of the reader to my last position, •which is — IV. That the numerous bankruptcies among our merchants have chiefly arisen from the want of protection to manufactares. That an immoderate number of our merchants has been re- duced to bankruptcy, is universally admitted. The exact pro- portion cannot be ascertained. It has been carried as high as jnine-tenths in Philadelphia, New York and Baltimore. This I believe extravagant. I assume two-thirds, which is supposed to be a low calculation. It remains to enquire how this calami- tous result has taken place, under what is so generally styled a flourishing state of our commerce. Various causes have conspired to produce this eifect. Commerce in this country has partaken of the nature of a lot- tery. The prizes were immense, but very rare — the blanks numerous. It has been attended occasionally with immoderate profits, which have been succeeded by great losses. The pro- fits fostered a spirit of extravagance and luxury, which wasted all the previous temporary advantages, and rendered the merchants unable to contend with the storms of adversity. But the chief source of the misfortunes of our merchants has been the extravagant number of them — which, as I hope to make appear, has proceeded from the ruinous policy of our tariff. Had the great leading manufactures of cotton, wool, and iron, with some others, which were arrested by foreign importation, been, as sound policy dictated, duly protected, during the thir- ty' years of the existence of our government, thousands of young meh in every part of the united states, who have been devoted to the mercantile profession, and immoderately increased its Itiumbers, would have been employed in those branches. Many parents have destined their children to the pursuit of cornmerce, without either the requisite capital, talents, credit, tirfrientis, merely for wantjof other suitable employment. Hence THE NEW OLIVE BRANCHT. 363 most of our merchants have generally had two or three, and some as many as four apprentices, who, when free, have become supercargoes, or commenced a profession for which tiiey Wf-re >\hoIl)' incompetent, and thus added to the long list of bank- rupts. The effect of this state of things is, that there have been aijd probably are more shipping and importing merchants in the united states than in the British dominions in Europe. Almost every little port from Passamaquoddy to St. Mar\''s, has its body of merchants and importers, more or less numerous, who are constantly supplanting each other in the home and foreign markets, to their mutual ruin. The West Indies have thus proved the grave of the fortunes and happiness of half the mer- chants that have carried on trade uith them. The trade to that quarter, as the prices are constantly fluctuating, affords neither certainty nor security. The markets are either overstocked, or visited by a dearth. When the latter takes place, prices rise extravagantly. Intelligence arrives in this countiy. Our ports are crowded with shippers, who outbid each other, and raise the prices. Vessels full freighted are dispatched from all our ports. The first cargo, perhaps the second, or third, is sold at a great profit. The glut sinks the price, and all the i-emain- der sell at, and often below, cost. The majtr part of the busi- ness is almost wholly a lottery, or species of gambling, which regular commerce altogether disclaims. The price of flour in the West Indies frequently rises, and as frequently falls, to the amount of three, four, and five dollars per barrel, in the course of two, three, or four weeks. Hence the merchant whose vessel sails at the rate of nine knots an hour, often makes a fortune — while his less fortunate neighbours, whose rate of sailing is only eight knots, are ruined. The injurious effects of the inordinate competition, which is the natural consequence of the extraordinarj'^ number of our merchants, are fourfold : — 1 . Our staples are raised too high at home by the extent of this competition. 2. The same competition reduces them in the foreign markets. 3. It raises the return cargoes in those markets — and finally 4. Reduces the prices of those cargoes in our ports. These are among the most striking causes of, and satisfacto- SHly account for, the ruin of so large a portion of the mercantile class, and have obviously resulted chiefly, if not altogether, from the depression of manufactures. I offer a calculation on the subject, which, even if somewhat erroneous, may prove useful. Suppose the whole number of merchants in the united states, since the year 1789, to have averaged constantly 15,000 — and 364 'i'HE NEW OLIVE BRANCH. that two thirds of them have failed. Had manutacturing es- tablishments been properly patronized, there probably would not have been more than 10,000; to the mass of whom the pro- fession would have afforded a decent subsistence. In this case, it is probable that the bankruptcies would not have exceeded 2,000. Of course, 80U0 would have prospered out of 10,000 ; whereas, only 5000 have succeeded out of 15,000. Whatever deduction from, or addition to, this calculation may be made, the inference caiinot fail to be highly favourable to the general scope of my argument, and to pronounce a strong sentence of condemnation on the ruinous policy this nation has pursued. Another view may be taken of the subject. It appears that a large portion of our commerce consists in the transportation of the merchandize and manufactures of other nations from the places of production to this country, and hence to those of consumption respectively. But might not our merchants employ themselves as well in lending facilities to the industry of their fellow citizens as to that of foreign nations ? Would not broadcloths from Young & Son's, or Dupont's^ or Sheppard's manufactories^:— or shirtings and sheetings from Schenck's, or from Waltham, load a vessel as well, and pay as good a freight, as from Leeds or Manchester ? Would it not be at least as profitable to themselves, and as useful to their fellow citi- zens and to their country, to export cargoes of home-made goods to South America, and import specie, as to deluge their native country with foreign goods, drain it of its specie, and destroy its productive industry ? As the want of correct views on this point has been among the primary causes of the present distresses of the country, I hope to be pardoned for once more presenting it to the reader. The idea that the want of protection to manufactures has proved highly pernicious to the merchants , by an undue increase of their numbers, will appear plain to those who reflect, that, whefi by the restrictive system, and the war, there was a market open for, and protection afforded to, domestic manufactures, great numbers of respectable merchants, in all our cities, devoted their time, their talents, and their capital to the cotton and wbollen branches, very advantageously for themselves and for the coun- try, while this protection continued — but ultimately to the ruin of many of them. It is obvious that the inducements to commence an early career in manufacturing are greater than to quit another business, arid enter on this at an advanced period of life. And therefore it irresistibly follows, that the suc- cessful opposition to the establishment of manufactures ha? been the great cause of the superabundance of merchants^ and that from this superabundance has flowed the bankruptcy of so large a portion of them. THE NEW OLIVE BRANCH. 365 It is frequently asserted, that though so many of the mer- chants have been reduced to bankruptcy, the country has gained even by their ruin. This doctrine, which I have tried to de- velope, I do not understand. Let us investigate it. Suppose a farmer to sell 5000 bushels of wheat at two dollars per bushel. The miller grinds it — and sells to the flour mer- chant, who sells to the shipper. The latter becomes bankrupt, and pays two, three, five, or ten shillings in the pound, as the case may be. Of course the flour merchant, or the miller, or the farmer, suffers a heavv loss. I cannot see how, from a trans- action of this kind, which is an epitome of a large proportion of our mercantile business for years past, the country can be said to have gained. Money ,^ it is true, is put into the pocket of one man, but it is withdrawn from the pocket of another. There is no increase of the national wea:lth. Having in this chapter taken ground wholly new, with no former lights to illuminate my path, I may have occasionally wandered into error. But I trust the deviation, whatever it rnay have been, has not led me far astray — and that the positions I have assumed, and the inferences I have deduced, if not wholly right, are not materially wrong. CHAPTER XVI. Fostering care of commerce by congress. Monopoly of the coast- ing and China trade secured to our merchants from the year 1789. Revolting partiality. Wonderful increase of tonnage. Act on the subject of plaster of Paris^ Laxv levelled against the British navigation act. Rapidity cf legislation. The records of American legislation bear th(6 moist satisfac- tory testimony of the transcendant influence of the mercantile interest, and of the unceasing exertions made to fence it round with every species of protection the government could bestow. No fond mother ever indulged a beloved child more than con- gress has indulged commerce — attended to all its complaints — and redressed all its wrongs. My limits forbid a detail of the great varietv of ae^s passed for the exclusive benefit of commerce, with which the statute book abounds. I shall confine myself to a few of the most pro- minent and important. I. The second act passed by the first congress coiatained clauses which secured to the tonnage of our merchants, a mono- poly of the whole of the China trade — and gave them paramount advantages in all the other foreign trade. 3B6 THE NEW OLIVE BRANCH. The duties on teas were as follow : Boheateas - - per lb Souchong' 8c other black teas Hyson teas All other gi-e en teas - la foreign vess'i'.s. The annals of legislation furnish no instance of grosser or more revolting partiality than is displayed in this act, which es- tablished the first tariflf. A pound of hyson tea, which cost fifty-six cents, if imported in a foi-eign, paid twenty-Jive cents more duty than in an American vessel. Whereas a yard of broad cloth, or two 3'^ards of silk, cambric, or muslin, value five doW-nr?,^ paid but twenty-five ceiits^ all together, or five per cent. Thus the foreign ship-owner was at once shut out of our ports, so far as the China trade was concerned, beyond the power of competition, for the benefit of the American merchant ; whereas the foreign manu- facturer was invited in by a low duty : and the possibility of competition on the part of the American manufacturer wholly precluded ! Let me not be misunderstood to regard as incorrect the decided preference given to the American merchant. By no means. My object is to point out the immense inequality of the treatment of two great classes of citizens, which, to the great discredit of our legislation, and the incalculable injury of our country, as I hope is proved in the preceding chapter, per- vades our statute book. This is a digression, which the oc- carion called for. I return. II. The same act gave our merchants an additional decisive advantage, by allowing a discount of ten per cent, on the duties upon goods imported in American vessels. III. Such was the fostering care bestowed on the mercantile interest, that the third act was directed wholly for their security. By this act the tonnage duty on vessels belonging to American citizens was fixed at six cents per ton ; on American built ves- sels, owned wholly or in part by foreigners, thirty cents ; and on all other foreign vessels, fifty cents. IV. In order to exclude foreign vessels from the coasting trade, they were subjected to a tonnage duty of fifty cents per ton for every voyage j whereas our vessels paid but six cents, and only once a year. These four features of decisive protection, were enacted in a single session, the first under the new government. They placed the mercantile interest on high ground, and gave it overwhelm- ing advantages over foreign competitors. In fact, they almost altogether destroyed competition. I shall state their effects at the close of this chapter. THE NEW OLIVE BRANCH. 367 It is not difficult to account for this parental care. The mer- cantile interest was ably represented in the first congress. It made a judicious selection of candidates, and carried the elec- tions pretty generally in the seaport towns. Philadelphia was re- presented in the senate by Robert Morris, and in the house of representatives by Thomas Fitzsimons and George Clymer, three gentlemen of very considerable talents, and great influ- ence, particularly the first, who then bore a high rank among the mcst celebrated merchants of the world. The representa- tion in congress was divided almost wholly between farmers, planters, and merchants. The manufacturing interest was, I believe, unrepresented ; or if it had a ft w representatives, they were not distinguished men, and had little or no influence. It shared the melancholy fate of all unrepresented bodies in all ages and in all nations. The tariff" bears the most unequivocal marks of this state of things. Agriculture and commerce engrossed nearly the whole attention of congress. Their interests were well guarded. Manufactures, as may be seen (page 274) were abandoned to an unequal conflict with foreign rivalship, which consigned a large portion of them to ruin. I have shewn the revolting neglect, so highly discreditable to congress, with which the applications of the manufacturers have been treated. It now remains to contrast this procedure with the kind attention and fostering care bestowed on the merchants, and the rapidity of motion in their concerns. On the 29th of July, 1816, the governor of Nova Scotia, by proclamation, announced the royal assent to an act of the legis- lature of that pro\ ince, whei-eby the trade in plaster of Paris was intended to be secured to British or colonial vessels. To counteract this insidious measure, Mr. Rufus King, on the 17th of February, 1 817, in the house of representatives of the uni- ted states, presented a resolution, which was carried, "that the committee on foreign relations be instructed to report such mea- sures as they may judge necessarv to regulate the importation of plaster of Paris, and to countervail the regulations of any other nation, injurious to our own, relating to that trade." In four days afterwards, vjz. on the 21st, Mr. Forsyth, chair- man of that committee, reported a bill to regulate the trade in plaster of Paris, which was read the first and second time on that day, and the third on the 3d of March. The yeas and nays were called, and it was passed by a majority of eighty to tliirty- nine. It xvas then sejit to the se?iate; there read three times on the same day, and passed with some amendments — then return- ed to the house of representatives, who concurred in the amend- ments, and finaiiv passed the bill. Thus it was actually read four times, amended and passed in ojie day — a case probably without 368 THE NEW OLIVE BRANCH. example. It was only fourteen days from its inception to its approbation by the president. Let it be observed further, that the hostile measure which call- ed forth this spirited act, was only about seven months and a half in existence, when it was thus decisively counteracted. What a contrast between this celerity of operation and the lame and sinister policy observed towards manufacturers ! The all-important act prohibiting the entry into our ports of British vessels arriving from places from which American ves- sels are excluded, was reported and twice read in senate on the 1st of April, 1818. On the 4th it was read the third time, and passed. On the same day it was read twice in the house of represen- tatives. On the 11th it was read a third time, and passed. On the 16th it was presented to the president — and approved by him on the 18th. Thus it became a law in seventeen days from its presentation. Let any man, however hostile to manufactures or manufactu- rers, compare the progress of these two bills, involving such im- portant principles, particularly the latter, with the snail's pace of any bill for the relief of manufacturers, and he will be obliged to confess that congress is actuated by a very different spirit tOi- wards the two different descriptions of citizens. The first of these acts is manly and dignified, and worthy of the legislature of a great nation, determined to assert a reciprocity of advan- tage in its intercourse with foreign nations. The policy and prudence of the second are rather questionable. It was not verj^ likely to succeed ; as it was a bold attempt to coerce the British nation to rescind one of the most important features of its navi- gation act, regarded as the basis of its power and greatness. Both their pride and interest revolted at the measure ; and having wholly failed of accomplishing the object in view, its operation is highly pernicious to this country. It has in many instances sacrificed the sale of our staples, in the unavailing ef- fort to obtain the freightage of them. At all events, consider- ing its great magnitude, and its important effects on the agricul- tural interest, there can be no doubt, that it was too precipitate- ly passed. It was only four days on its passage in the senate — and eight in the house of representatives. Be this, however, as it may, my present object is only once more to place in contrast the paternal care of commerce and the frigid and withering in- difference, not to say hostility, towards manufactures, displayed in that body, which ought to " look with equal eye" upon, and to dispense equal justice to, all classes of citizens. And to close the catalogue, a bill for the protection of com- merce is now before congi'ess,* and not likely to meet with much * Tlijs bill was passed in a few days after the above was written — and has equally failed in the grand object of forcing Great Britain to open the ports of her colonies to our shipping-. THE NEW OLIVE BRANCH. 369 opposition, which cannot fail to affect the agricultural interest severely, by very materially abridging the markets for their pro- ductions. It is calculated to effect the object contemplated by the last mentioned act. More detail is unnecessary. The position is fully established, that commerce has steadily enjoyed all the protection the go- vernment could afford. Every hostile movement on the part of foreign nations, to the injury of our merchants, has been deci- dedly met and counteracted. The consequence of this system bas been to insure our mei*- chants — I. The whole of the coasting trade, amounting to 400,000 tons per annum. II. Eighty-six percent, of the tonnage engaged in the foreign trade, viz. Total tonnage in the foreign trade for twenty-two years, from 1796 to 1817, - - tons 18,200,541 Of which there was American - 15,741,632 Foreign - - 2,458,909 18,200,541 And III. An increase of tonnage unexampled in the history of navigation : — Tonnage of the united states. Tons. In 1789 - - 201,562 In 1806 1790 - - - 478,377 1807 ■ 1792 - - 564,437 1808 1794 - - - 628,816 1809 - 1796 - - 831,900 1810 1798 - - 898,328 1811 - 1801 - - 1,033,218 1812 1802 - - 892,102 1813 - 18(j3 - - 949,171 1814 1804 - 1,042,402 1815 ■ 1805 - - 1,140,368 | 1816 Tons. 1,208,735 1,268,548 1,242,595 1,350,281 1,424,783 1,232,502 1,269,997 1,166,628 1,159,208 1,368,127 1,372,218 Seybert, 47 370 THE NEW OLIVE BRANCH. CHAPTER XVII. Erroneous views of the tariff^. Protection of agriculture in 1789, Prostrate state of the staples of South Carolina and Georgia. Ninety per cent, on snuffs and one hundred on tobacco. Striking contrast. Abandonmeiit of manufactures. Numbers of the farmers and planters of the united states are under a strong impression — I. That the tariff aifords a decided protection to the manufac- turers. II. That it operates as a " heavy tax on the many for the be- nefit of the few." And III. That there is no reciprocity in the case — as agricul- ture is not protected. That the first position is radically erropeous, is self-evident from the lamentable situation of so large a proportion of the manufactures and manufacturers of the united states, on which I have already sufficiently descanted. The second is disproved in the eleventh chapter. To the discussion of the third, I devote the present one. Few of the productions of agriculture require protection. Their bulk, and the consequent expense of freight, afford them in general tolerable security. But such as are imported, or like- ly to be, have been subject to high duties from the commence- ment of the government to the present time. The articles of which the importation materially affects the interests of the landholders do not much extend beyond hemp, cotton, malt, tobacco, cheese, indigo, coals and potatoes, which, by the tariff of 1789, were subject to the following duties. Cents Hemp ^ , - per cwt. 60 Malt - per bushel 10 Coals - - do. 2 Cheese - per lb. 4 Manufactured tobacco do. 6 The duty on cheese was equal to fifty -seven per cent. ; oil Indigo about sixteen ; on Snuff, ninety ; on Tobacco, one hundred ; on Coals zbonX. fifteen per cent. The duty on the raw materials, hemp and cotton, demand par- ticular attention. They were about twelve per cent. — imposed, Cents. Snuff per lb. 10 Indigo - do. 16 Cotton do. 3 Potatoes per cent. 5 THE NEW OLIVE BUANCir. Sfi In compliance with the suggestions of Mr. Burke, to aid the! agriculturists of South Carolina and Georgia, " because they hoped to be able to raise those articles'''' South Carolina and Georgia at that period Avere at a very low ebi.. Their great staples, rice and indigo, had greatly sunk ia price — :uid they had not as yet entered on the culture of cotton. TEdavius Burke, in a debate on the tariff, on the 16th of April, 17S9, to induce the house to lay a considerable duty on hemp and cotton, gave a melancholy picture of the situation of those stat-s — " The staple products of South Carolina and Georgia," he observed, '• were hardly v/orth cultivation, on account of their *' fall in price. The lands were certainly well adapted to the *■■ grov, 1 1 of hemp : and he had no doubt hut its cultuie would " be practl -.ed with attention. Cotton was likexvise in contempla^ " tion among them: and 'tf good seed could he procured^ hl hoped " MIGHT sucgej;d ! ! But the low strong rice lands would pro- *' duce hemp in abundance, many thousand tons even this yearj " if it^was not so late in the sea on."* In iA. debate on the same subject, Mr. Tucker, another of the representatives from that state, re-echoed the plaintive strains of his colleague : — "•' The situation of South Carolina Was melancholy. While " the inhabitants were deeply in debt, the produce of the state " ivas daily falling in price. Rice and indigo were become so *' low, as to be considered by many not objects worthy of culti- " vation. Gentlemen" he added, '' will consider that it is not " an easy thing for a planter to change his whole system of hus- " landry in a moment. But accumulated burdens will drive to " this, and increase their embarrassments."! The duty on manufactured tobacco was intended to operate as an ahjs olute prohibition — and was liberally proposed with this view by Mr. Sherman, a representative from Connecticut. "■ Mr. Sherman moved six cents per pound on inanufactured *' tobacco ; as he thought the duty ought to amou7it to a prohibi- « tionr] While these high duties were imposed upon such of the pro- dvictions of the farmer and planter, as were likely to be imported, all the great leading articles of manufactures, as may be seen, (Chapter III.) were subject to only five per cent. ! ! ! A striking contrast in the tar'rfffor 1 789. Per cent. Per cent. Snuff > _ - 9<.; Woollens * - 5 Tobacco - - 100 Cottons . - _ 5 * Debates of congress, vol. I. p. 79. t Idem, 70. % Idem, 93. THE NEW OLIVE BRANCH. Per cent. Per cent. 16 Pottery - 5 - 15 Linen 5 12 Manufactures of iron - 5 12 lead - - 5 copper - 5 372 Indigo Coals Cotton Hemp In the last chapter, I gave a sketch of the fostering care of commerce : Here we see, in the very outset of ihe government, the same care extended to agriculture, and a most culpable ne- glect of manufactures — the germ of that cruel and withering system, that has, I repeat, placed this country nearly in the state of a colony to the manufacturing nations of Europe — which, without expending a single cent for our protection, have enjoyed more benefits from our commerce than ever were enjoyed by the mother country, during the colonial state of this continent — and more benefits than any nation ever enjoyed from colonies, ex- cept Spain. Perhaps even this exception is superfluous. In 1790, the tariff was altered, when indigo was raised to twenty-five cents per pound, and coals to three cents per bushel. In 1 792, it was again altered, and hemp raised to twenty dol- lars per ton, and coals to four and a half cents per bushel. This was about twenty per cent, on hemp, and txventy-five on coals — whereas the leading manufactures of cotton, wool, leath- er, steel, brass, iron, and copper, were only raised to seven and a half per cent. Passing over the intermediate alterations of the tariff, which all bear the same stamp of inequality and partiality, I shall notice the protection afforded at present to the class of articles whereby the interests of the owners and cultivators of the soil, are af- fected, in contra-distinction to the description of citizens pro- perly styled manufacturers. 1820. Prices* Rate oj duty. Duty Per cent. Hemp, per ton Cotton, per lb. Cheese in Holland Coals, per bushel . - - - - Snuff, average per lb. . - . - Manufactured tobacco-j- - - - Segars per Mf ...... Geneva, per gallon . - - . •Jamaica rum do. Brown sugar, per lb. - - - . S 114.00 .10 .10 .13 .16 .10 5.00 .42 .70 .6 S 0.0 .o .9 .5 .12 .10 2.5>, .42 .48 .O 26 30 90 38| 75 100 50 loo 68 50 * At the places of exportation respectively. f See page 374 for the reason why these two ai-ticles are placed in this class. THE NEW OLIVE BRANCH. 573 All the other articles, of this class, are su]>ject to fifteen per cent, duty ; which, be it observed, is the same as the duty on more than half the manufactures imported into this country. We find cotton, the staple article of South Carolina, Georgia, Alabama, &c. of which the freight is about thirty per cent, se- cured by thirty per cent, duty — the staple of Virginia by sev- entv-five, and one hundred — and the peach brandv and whiskey, of the farmers generally, by sixty-eight and one hundred, while the cotton and woollen branches are exposed to great depression and have been paralized, for want of a duty of thirty-three per cent. ! ! ! To display the monstrous partiality of this procedure — I shall contrast the duty and freight of a few articles of both descrip- tions — Duty Fi eight Total „ Duty Freight Total Per ct. Per ct. Per ct Per ct. Hemp - - 26 24 50 Cotton stockings 25 2 28 Cotton - - 30 30 60 Cambrics - - 25 2 27 Cheese - - 90 10 105 Woollen cloths 25 2 27 Geneva - - 100 15 110 Silks - - - 15 1 16 Rum - - - 68 10 78 Woollen stockings 20 2 22 Snuff' - - - 75 5 80 Thread stockings 15 2 17 Tobacco 100 5 105 Gold leaf - - 15 1 16 Coals - - - 38i 12 i Linens ... 15 2 17 Sugar - - 37i 6 m \ It is scarcely possible to conceive of a more revolting arrange- ment — or one that more completely violates the holy, the golden rule — " All things whatsoever ye would that men should do to you, "do you even so to them." Now, in the face of this nation, I venture to ask, is there a respectable^an in society, who considers the above items, and will not allow that the protection of agriculture is incomparably more complete than that of manufactures ? And yet, wonderful to tell, the extravagant protection bestow- ed on the manufacturers, and the want of protection to agricul- turists — the insatiable appetite of the former, and the liberality and disinterestedness of the latter, are preached in long-winded speeches in, and memorials to, congress, and as long-Avinded newspaper essays, and are received as undeniable truths ! Another contrast. Potatoes Butter Flour Malt Onions Tobacco in the leaf Present Duty. Present Duty. Per cent. Per cent. 15 Watches rr 1 . 15 Jewelrv . 7k 15 Inkpowder IS . 15 Printed books . 15 15 Worsted shoes 15 \i . .15 Linens and silks - 1 5 S74 THE NEW OLIVE BRANCH. Potatoes^ oniojis^ and tobacco — linens^ silks, and printed books — subject to the same duty ! What wonderful talents this tariff disolays ! How admirably it corroborates the fond " day dreams" in which we indulge ourselves, of our immense superiority over the benighted Europeans, who, mi'rabile djctu, according to judge Story, are studying lessons of political economy under congress — " The statesmen of the old world, in admiration of the success " of our police, are relaxing the rigour of their own systems ! !" So says the celebrated Salem memorial, edited, according to public fame, by this most learned judge. Objections have been made to the classification of manufac- tured tobacco and snuff among the ai-ticles dutiedfor the benefit. of agriculture ; as they fall under the denomination of manufac- tures. They are, it is true, manufactures. But that they are so extravagantly taxed, is not from any partiality towards the man- ufacturers of them — but to protect the planters. It requires no moderate share of modesty to assert, and of credulity to believe, that regard for the manufacturers leads to lay a duty of one hun- dred per cent, on manufactured tobacco, when for five years the manufacturers of woollens and cottons have in vain implored to have the duty on superfine cloth, muslins, and cambrics, raised beyond twenty-five per cent. Even the Jew Apella, capacious as was his gullet, would not be able to swallow this fiction. I wish it distinctly understood, that as the prices of hemp, Geneva, rum, coals, &c. are subject to frequent fluctuations in foreign markets, I do not pretend to vouch for the critical ex- actness at the present time, of the preceding quotations. I have collected my information from merchants of character, on whom reliance may be placed, and have every reason to believe that it is substantially correct. CHAPTER XVni. A}i axvful contrast. Distress in Great Britain, because she can- not engross the supply of the xvorld. Distress in the united states, because the home market is inundated with rival manu- factures. This shall be a short chapter. But I hope it will make a deep and lasting impression. The subject is of vital importance. I have drav/n several contrasts between our policy and that of foreign nations, to evince the unsoundness and pernicious consequences of the former. To one more contrast I request attention. THE NEW OLIVE BRANCH. 375 Great distress pervades the manufacturing districts of Great Britain, in which commerce largely partakes. And whence does it arise ? Because her merchants and inanufacturers can- not engross the supply of the world ; for their capacity of pro- ducing every article made by machinery is commensurate with the wants of the whole human race ; and, could they find a pas- sage to the moon, and open a market theie, they would be able to inundate it with their fa'>rics. Their government, with a fostering and paternal care, which by the contrast reflects discredit on ours, secures them the unlimited range of the domestic market; and loses no opportunity, by boun- ties, drawbacks, and every other means which can be devised, to aid them in their efforts to engross our and all ether itiarkets. But the wisdom of the other nations of Europe, guarding the industry of their subjects, excludes them from various markets which they were wont to supply — and baflRes their skill and sa- gacity. The great mass of their surplus productions, is, there- fore, disgorged on us, to the destruction of our inanufaciurers and the impoverishment of the nation. What a lamentable contrast we exhibit! Our manufacturers suf- fer equally. Their capital is mouldering away — their establish- ments falling to ruins — themselves threatened with bankruptcy, and their wives and children with dependence — their workmen dispersed and driven to servile labour and mendicity — and why ? Not because they are excluded from foreign markets. They aspire to none. Their distress arises from being debarred of so large a portion of their home market, to which our mistaken policy invites all the manufacturers of the earth! Thus, while the British government uses all its energies to enable the manufacturers of that nation to monopolize the mar- kets of the united states, our government looks on with perfect indifference, while the ill-fated, depressed, and vilified American, defeated in the unequal struggle with powerful rivals and an energetic government, is bankrupted or beggared — or in danger of bankruptcy or beggary — and in vain invokes its protection ! In a word the representatives of the freest people on the globe, have less regard for, and pay less attention to the happiness of, their fellow citizens, than the monarchs of the old world to their subjects. This is a strong declaration. But it is delivered with great deliberation, and with the most undaunted confidence of its cor- rectness. The shameful and contumelious neglect of the memo- rials of the manufacturers at each successive session of congress, from 1816, down to the present time, cannot, I am persuaded, be paralleled in the history of England or France. Let it be observed, I except the dependencies of both nations. If the smallest body of manufacturers in England finds itself aggrieved, 376 TilE NEW OLIVE BRANCH. and applies to the British parliament for redress, a committee is appointed to examine into the case, and to devise a remedy. If such remedy is practicable, it is applied. But we have seen that the petitions and memorials from the great cities of New- York, Philadelphia, Boston, and Baltimore, were not only not complied with, but not even read or reported on, to the indeli- ble discredit of the fourteenth congress. Our citizens merely seek a portion of that protection which the most despotic monarchs in Europe afford their subjects. But they seek in vain. Pharaoh did not turn a more deaf ear to the applications of the Israelites, than congress have, for five years, to those of their fellow citizens who have contributed to elevate them to the honourable stations they occupy — and who pay their proportions for services from the benefit of which they are in a great measure precluded. What a hideous, what a deplorable contrast! What a libel on republican government! What a triumph for the friends of mon- archy — for those who hold the appalling heresy, to which our career affords some countenance, that man was not made for self-government ! This is so shocking a state of things that with all the evidence ^f the facts before my eyes, I can scarcely allow myself to credit ?t ! Would to God, it were not true — but alas ! it is a most af- flicting reality. CHAPTER XTX. , ]^ncoii,rageme:nt and patronage of immigrants^ by England and France. Advantages of the united states. Great numbers of immigrants. Their sufferings. Return of many of them. Interesting table. , 3oME political economists have asserted that the strength of a nation consists in the number of its inhabitants. This, with- out qualification, is manifestly erroneous. A numerous popu- lation, in a state of wretchedness, is rather a symptom of debilit\^ than of strength. Such a population is ripe for treason and spoil. But a dense population, usefully and profitably employed, and in a state of comfort and prosperity, constitutes the pride and glory of a statesman, and is the basis of the power and security of nations. Hence there is scarcely any object which the most profound statesmen and monarchs of Europe, have for ages mof^ uniformly pursued than the encouragement of immigrants pos(Cf sqss^d of^iy.sefyiltalpn;ts. i; rjiit i^'^" ' THE NEW OLIVE BRANCH. 377 Under all the governments of Europe, therefore, even the most despotic, inducements have l.een frequentlv held out to in- vite a tide of population of this description. And the wealth, power, and prospt-rity cf some of the first rate nations, date their commencement from migrations thus promoted and encouraged. The decay and decrepitude of the naiions from which the immi- grants have removed, have been coe\ al and proceeded pari passu with the prosperity of those to which thev have migrated. The woollen manufacture, the mam source of the wealth and prosperity of England, dates its great extension and the com- mencement of its prosperity from the wise policy of Edward III. who invited over Flemish workmen, and accorded them most important privileges. The horrible persecutions of D'Alva in the Netherlands, and the repeal of the edict of Nantz, in France, at a more recent pe- riod, drove thousands of artists of every kind, possessed ot great wealth, and inestimable talents, to England, whence she derived incalculable advantages. Spain, whose policy we despise, repeatedly encouraged set- tlements of immigrants to establish useful manufactures, which had a temporary success. But the radical unsoundness of her system, and her spirit of persecution, blasted all these promising attempts. France, under Louis XIV, pursued this system to a greater extent than any other nation. That king gave titles of nobility and pensions and immunities, to various artists and manufac- turers, who introduced new branches of industry into his domin- ions : and a great porton of the wealth which he squandered on the splendor of his court, and on the ambitious projects of his reign, arose from his protection of those immigrants, and the manufactures they introduced. If this policy were wise, and had the sanction of the statesmen of nations of which the population was comparatively dense, how much more forcibly does it apply to the united states, of which the population bears so small a proportion to the territory ! No country affords more room for immigrants — none would derive more benefit from them — none could hold out so many solid and substantial inducements — and there is none to which the eyes and longings of that active and energetic class of men who are disposed to seek foreign climes for the purpose of im- proving their condition, are more steadily directed. We have the most valuable staples — the greatest variety of soil, climate, and productions — an almost unlimited extent of territory — and the most slender population in proportion to that territory, of any nation in the world, except the Indians, and perhaps the wan- dering Tartars. And had manufactures, particularly the cotton, woollen and iron, instead of the paltry duty of five per cent, been 48 378 THE NEW OLIVE BRANCH. early and decisively taken under the protection of the govern- ment, at its first organization, in 1789, after the example of other nations, there is no doubt we should have had a tide of immigra- tion beyond any the world has ever witnessed. From the oppression and misery prevalent in various parts of Europe — from the high idea entertained of the advantages of our government — and from a variety of other circumstances, it is fair to presume, that had immigrants been able at once to find employment at the occupations to which they were brought up, AVt" might have had an annual accession of 30 or 40,000 beyond the numbers that have settled among us. But I shall only sup- pose 20,000. To evince what might have been, from what has taken place, I annex the only two tables of immigration I have been able to find. And let it be observed that the first is necessarily very imperfect ; as there was no governmental regulation to enforce the collection of accurate statements. In 18ir, 22,240 immigrants arrived in ten ports : — 18,114 In Boston 2,200 In Baltimore - 1,817 New York - 7,634 Norfolk - 520 Perth Amboy 637 Charleston - 747 Philadelphia 7,085 Savannah - 163 Wilmington, D. - 558 18,114 New Orleans - - 879 22,240* In New York, from March 2, numbers reported at the mayor's English Irish French Welsh Scotch Germans Spaniards Hollanders Swiss Italians Norwegians Swedes 7,539 6,062 922 - 590 1,942 - 499 217 - 255 372 103 - 3 28 18,532 1818, to Dec. 11, 1819, the office, were 18,929.f 18,532 54 5 - 48 Portuguese Africans Prussians Sardinians _ - 3 Danes - - - 97 Russians - - 13 Austrians - - - 8 Turk - - - - 1 Polander - - - L Sandwich Islanders - 2. Europeans not described 52 Passengers do. do. 113 18,920 *Sevbert, 29. ^ - v-.: f Report of the society for the preveirtion of pauperism, p. 67. THE NEW OLIVE BRANCH. 379 The mavor of New York* has given a calculation, that these were but two thirds of the whole number that arrived. Admit- ting this estimate, the whole number in twenty-one months was about 28,000, or 16,000 per annum. Twent)^ thousand, which I have assumed, as what might have been annually added to our population by a sound policy on the subject of manufactures, will be regarded as probable on a con- sideration of the preceding statements — particularly the table of the enormous arrivals in New York, notwithstanding a variety of discouraging circuni stances, of which the tendency was to re- press or even to destrov the spirit of immigration. Among these, the principal one has been the calamities and Avretchedness endured by most of those immigrants, whose fond hopes and expectations wei'e wholly blasted on their arrival here. Thousands and tens of thousands of artists, mechanics, and manu- facturers, with talents bejond price, and many of them with handsome capitals, escaped from misery and oppi'ession in Eu- rope, and fled to our shores as to a land of promise, where they expected to find room for the exercise of their industry and ta- lents. But the fond delusion was soon dispelled. As soon as they arrived, they sought employment at their usual occupations. None was to be found. Those whose whole fortune was their industry, wandered through our streets, in search even of me- nial employments, to support a wretched existence. And nu- merous instances have occurred, of cotton weavers and clothiers, as well as persons of other useful branches, who have sawed and piled wood in our cities — and some of whom have broken stones on our turnpikes, for little more than a bare subsistence. Many hundreds have returned home, heart-broken, and lamenting their folly, after having exhausted all their funds in the double voy- age and inevitalile expenses. Their misfortunes operate as a beacon to their countrymen, to shun the rocks on which they have been shipwrecked. It is easy to estimate the effects that must have been produ- ced by the dismal tales in the letters written by those who re- mained, and by the verbal accounts of those who returned. I^ is not extravagant to suppose, that every returned emigrants prevented the emigration of twenty persons, disposed to seek< an asylum here. And the melancholy letters, transmitted by those who had no means of returning, must have had nearly- equal influence. ^r;V i Many of those who were unable to return, rendered despe- rate by distress and misery, have proved injurious to the coun^ • "The chief magistrate of tliis city has calculated tliat this number does no* " 'nciude more thaa two thirds of the real number." rt 380 THE NEW OLIVE BRANCH. try, which from their labour mig!it have secured the most emi- nent advantages. I hazard an estimate of the gain that might have been made by a sound policy, which would have encouraged manufacturing industry, and promoted immigration, to the extent I have as- sumed, viz. 20,000 additional per annum, since the commence- ment of our present form of government. I will suppose the value of the productive labour of each in- dividual to be only a quarter dollar per day beyond his sub- sistence, which, for 20,000, would have amounted to S 1,500,000 per annum. The whole number th^t would have arrived in the thirty years, would have been 600,000. The annexed table ex- hibits a result, which petrifies with astonishment, and sheds a new and strong stream of light on the impolicy of our system. jVo. of im- migrants. Value of labour. jYo. of im- migrants. Value of labour. 1789 1790 1791 1792 1793 1794 1795 1796 1797 1798 1799 1800 1801 1802 1803 20,000 40,000 60,000 80,000 100,'JOO 120,000 140,000 160,000 180,000 200,000 220,000 240,000 26ij,000 180,800 300,000 S 1,500,000 3,000,000 4,500,000 6,000,000 7,500,000 9,000,000 10,500,000 12,000,000 13,500,000 15,000,000 16,500,000 18,000,000 19,5uO,000 21,000,000 22,500,0.j0 1804 1805 1806 1807 1808 1809 1810 1811 1812 1813 1814 9815 1816 1817 1818 320,000 340,000 360,000 380.000 400,000 420,000 440,000 460,000 4.^0,000 >00,000 520,000 540,000 560,000 580,000 600,000 180,000,000 24,000,000 25,500,000 ^7,000,000 28,500,000 30,000,0^0 31,500,000 33,000,000 34,500,0iJG 36,UOO,OuO 37,500,000 39,000,OOU 40,500,000 42,000,000 43,500,000 45,000,000 fy 180,000,000 1 *g 697,500,000 i , The natural increase of the immigrants by generation, at five per cent, per annum, would make the number amount to above 1,000,000. Of the addition I take no account. I barely men- tion, that an immigration of 10,000 annually, would, according to this increase, have produced nearly the same result as the as- «:)imed number 20,000. . Let us then state the results of different numbers : — * This table, altlioug-h tolerably plain and simple, may require some explana- tibn. it is assumed, tliat 20,000 iiiimi^-ants would have arrived yearly ; of course, in 1789, there would have been in this country 20,000— in 1790, 40,000~in 1791, 60 000, and so thr:.ug-hout the whole series of years. There is no accour" taken of the increase of the immi^ants by generation. THE NEW OLIVE BRANCH. 381 10,000 immigrants, with the natural increase of fi\ e per cent, per annum, at a quarter of a dol- lar per day, would produce in 30 years about 8650,000,000 That of 5,000 with the same increase . . §325,000,000 It is fair to suppose that the articles produced by them would be worth double the labour, or, in . the first case, . . . . SI, 300,000,000 In the second .... g65O,O0f),O0O These immense advantages we blindly threw away, while we were scufflmg through the world at every point of the compass, and " in every bay, cove, creek, and inlet /" to which we had access, for a precarious commerce, which ruined the great mass of the merchants who pursued it — exposed our hardy seamen to stripes and bondage — involved us in unnecessary collisions with the belligerent powers, and finally in war, — and entailed on us a host of foreign ministers — a wasting navy that will cost above 3,500,000 dollars this year — and a debt of near- ly 8' -.000,000 ot dollars ! Other views of the subject present themselves. Although a large proportion of the immigrants who arrive in this and other countries, are dependent on their labour for sup- port, yet many capitalists immigrate ; and there would be double, treble, perhaps quadruple, the number of this class, could they employ their capitals advantageously. I will assume an average of one hundred and fiftv dollars for each immigrant, in money and property. This would amount to 3,(jU0,000 dollars per annum, or in the whole 30 years to 90,000,000 of dollars. The consumption of the productions of agriculture by those immigrants, according to the calculation in page 332, at the rate of a quarter dollar per day, would be at present per annum 54,000,000 of dollars, and their clothing and furniture at 40 dol- lars per annum, 2 i, 000,000. Calculations have been made of the value to a state of an ac- tive efficient individual. In England it was formerly, I believe, supposed to be about 100/. sterling. I will suppose each immi- grant to be wortli three hundred dollars — this would make the amount of the 600,000 immigrants assumed, §180,000,000. These calculations are ail necessarily crude — and admit of considerable drawbacks. But whatever may be the drawbacks, sufficient will remain to prove to the world, that there proba- bly never was a nation which had so uiany advantages within its grasp — and never a nation that so wantonly threw its advanta- ges away. 382 THE NEW OLIVE BRANCH. ^ Summary. Suppose 10,000 immigrants annually, with the na- tural increase of five per cent. A mount of labour in thirty years . S650,000,00O Value of their productions . . Si, 300,000,000 Amountof property imported . • g90,000,0U0 Present annual consumption for food, clothes, and furniture, .... S78,000,00O As this chapter drew to a close, I met with a report made to the house of representatives of the united states, on the sub- ject of immigrants, which deserves some notice. An application has been recently made to congress by a body of Swiss, for a quantity of land, on more advantageous terms than those on which it is sold by law. The committee, after stating the necessity of lessening the existing indulgences in the sale of the public lands, adds — " If the public interests should ever justify a relaxation from " them, it would be in favour of American citizens :" And recommends to the house the following resolution — " Resolved^ that the prayer of the petitioners ought not to be " granted." So far there are reason and propriety in the report. The terms on which lands are sold by the united states are sufficient- ly favourable for foreigners as well as natives. But when the committee notices the depressed situation of American manu- factures, and assigns it as a reason against encouraging the im-. migration of such a useful body of men, possessed of invaluable talents, it is a full proof that the members did not study the subject profoundly. " In answer to that part of the petition which declares that one " of the principal objects is ' the domestic manufacture of cot- " ton, wool, flax, and silk ;' the committee will only say, that it " may be well considered, how Jar it would comport with sound '■^policy to give a premium for the introduction of manufacturers ^ •" at a moment when, hy the almost unanimous declaration of our " mamfacturers, it is said they cannot live zvithout further pro- *' tectionP A more obvious idea would have been, to suggest such en- couragement of manufactures, as would have relieved our citi- zens actually engaged in those branches, and held out due in- ducements for accessions to our population of the sterling cha- racter 6'fth'eapplrcaiits in question.' FINIS. ■ ADDRESS TO CONGRESS BEING ^ wumw OF THE RUINOUS CONSEQUENCES OF A DEPENDENCE ON FOREIGN MARKETS FOR THE SALE OF THE GREAT STAPLES OF THIS NATION, FLOUR, COTTON, AND TOBACCO. Head before, and ordered to be printed by, the Board of Manufactures of tiie Pennsylvania Society for the promotion of American Manufactures. SECOND EDITION. FIBST PtTBLISHED, MAT 10, 1820- " Our fast-sailing ships which traverse the ocean ; our steam-boats which as- " cend our magnificent and rapid rivers ; our improved roads and canals of inte- " rior commimication — all of which were devised for our peculiar benefit — are " at pi^esent employed prindpaUy to aid our rivals, and to transport commodities " into the central regions of this great continent, which check every effort ofprO' ",fitable indiisti'y, and blast every gei-m of patriotic CTJ— Governor Wolcott. " Qincquid delirant reges, plectuntur .4cAm. "—Horat. ADVERTISEMENT. The object of this pamphlet is plain and simple. It is, to prove the ruinous consequences which have attended the depen- dence on foreign markets for the sale of our staples ; the very precarious tenure bv which those markets are held ; and the su- periority, to the agriculturist, of a certain domestic, to a preca- rious foreign market. In this address, as in all he has written hitherto on collateral subjects, the writer has depended more on strong and decisive facts, than on abstruse reasonings. The former are almost uni- versally safe guides — the latter mere ignes fatui^ which too ge- nerally lead astray. The facts respecting the loss of the indigo market, are pecu- liarly interesting to the cotton and tobacco planters. There is a perfect analogy between the dangers that threaten the trade in their two important staples, and those which formerly threat- ened and finally supplanted the indigo trade of South Carolina. Of a rise in the price of either cotton, tobacco, or flour, there is no prospect. The importation of cotton into Great Britain in 1819 was one- sixth less than in 1818 ; and yet, notwithstanding this impor- tant circumstance, and all the predictions hazarded, and the hopes entertained, of an advance of price, it was by the latest accounts declining. The prospects for tobacco are still more discouraging. The continental markets are greatly circumscribed by the extension of the culture in that quarter. The fact of flour being advantageously shipped from France to the West Indies ; and the amount of the export of wheat from Odessa, exclude all hopes of advantageous foreign markets for our bread stuffs. The necessity, therefore, of increasing the domestic market for our cotton and flour, and of limiting the culture of tobacco, appears as plain as the noon-day sun. This can be done effect- ually, only by the encouragement of our own manufactures, whereby some of the thousands of our citizens whom the de- pression of manufactures has compelled to become agricul- turists, may be induced to return to their former pursuits. The conviction of this truth is rapidly spreading — and cannot fail finally to become general. It is not, however, within hu- man foresight, to divine how long and how severe a course of ADVERTISEMENT. 385 suffering we must go through, before our councils are influenced by the salutary conviction. Those merchants, farmers, and planters, who ha^'e opposed the protection of manufactures, ought to study the fable of the bellv and the members. It is fraught with instruction. Their jealousy of, and refusal of protection to, the manufacturers, form a complete exemplification of that fable, and have led to nine- tenths of the distress and impoverishment of the nation, which have fallen heavily on themselves. For let theorists sav what thev will, miserj?^ and wretchedness must as certainlv attend na- tions, which expend more than their income, as individuals : ind had manufactures been properlv protected, our imports would have necessarily been limited within narrower bounds', and kept on a level with our exports, so as to prevent that ruin- ous drain of specie which has paralized everj'^ species of industry. The destruction of so many manufactories throughout the imion has deprived the neighbouring farmers of a market for their wool, their garden stuffs, their grain, and a varietv of other articles. To this likewise is due the destruction of the merino sheep. The loss of the fleeces of those valuable animals is in- comparably more than the farmers gain by buying foreign goods cheap, whereby they consign their brethren to bankruptcy, the nation to impoverishment, and our working people to idleness and want. The merchant suffers still more severely. If he looks abroad for a profitable market for our staples, disappointment awaits him. For return cargoes, he experiences equal straits. A large portion of his customers are bankrupt, and others on the verge of bankruptcy. Can commerce fail to be ruinous under those circumstances ? Was the trade of an embarrassed nation ever advantageous to those who pursued it ? Is it wonderful, there- fore, that bankruptcy has spread among the merchants in as great a degree as among the manufacturers ? It is impossible that so important an interest as that of the manufacturing class, can ex- perience the destruction which has for years befnlTen it, Mithout the two other classes partaking largely of the misfortune. Our » history and that of Spain and Portugal are pregnant proofs of this theor)'. • , ' ' * . As well might we expect tfci a'mplit^te'thfe ife'gS 6i^''drms of'a human being, without affecting the head or the heart, as that sb large a portion of the manufactufer^ could be consigned to barik- riijitcy — their capitals to ruin— ^and the productive industry of p^obabh- 60 to 80,000 pebple be destroyed, without producing deleterious consequences on th«; whole nation. It will be a sub- ject of astonishment to our posterity how our statesmen coulH shut their eyes to such an important and obvious truth. They ha\'te dt^reefarded the lessons' afforded Hr^'theTilfitorv of mankind 49 386 ADVERTISEMENT. in every age in which a fatal policy has led governments to ne- glect the protection of national industry. The views of the author have been unjustly regarded as hos- tile to farmers and merchants. Never was there a more un- founded idea. He is a warm friend to both. He has beeii pleading in their behalf full as much as in that of the manufac- turers. There is an identity of interests between them : and until this great truth is fully understood and duly apprecia- ted, this country can never extricate itself from a situation, which has been thus justly characterised by the secretary of the treasury : " Few examples have occurred^ of a distress so gene- ral^ and so severe^ as that which has been exhibited in the united states.''"' In truth, however extraordinary it may appear, the policy he has advocated would be advantageous to the merchants of Great Britain, who, by their cupidity and the inundation of their mer- chandize, have destroyed their best market, and bankrupted their most valuable customers. Had we gold and silver mines, like Spain and Portugal, to enable us to pay for the extravagant amount of our imports, foreign nations would benefit by the suppression of our industry. But as we depend wholly on the proceeds of that industry, to discharge our engagements, it is their interest t6 cherish it, and to promote our prosperity. To the mere wily foreign politician, who dreads us as a rising ri- val, and desires to stunt our growth and enfeeble us, the case is far different. To him no sacrifice can be too great for the ac- complishment of this grand object. The important question for us to decide, is, how far we ought to lend ourselves to, and fa- cilitate the accomplishment of, such a sinister and mischievous policy. Among the considerations which have influenced the writer to pursue these subjects to the extent he has done, one remains to be stated, which is of immense importance. This is a government of opinion. It is not,at cannot be, sup- ported by physical force against that public opinion. It there- fore behoves our rulers to cherish the good will of the citizens, which is the bulwark of our peace and happiness. — But it is fa- tally true, that a conviction is generally spreading, — that the sufferings of our manufacturers — who constitute one-fifth of the white population of the country — how great and oppressive so- ever they may be, excite no sympathy in, and look in vain for alleviation from, the congress of the united states — and that the manufacturing subjects of some of the most high-handed des- potisms of Europe are treated with infinitely more attention and fostering care by their monarchs, than that useful body of citizens experience from the men whom they aid to clothe with power The fact is of public notoriety, that for five successive years they ADVERTISEMENI". 387 have besought their fellow-citizens in vain for relief from most intolerable evils ; that few or none of their ynemorials have ever been read; and that mamj of them have not even been reported on. And, from the ruinous policy we pursue, whereby bankruptcy and distress are spreading through the union, and so many of the working part of our citizens are devoted to idleness ; the attach- ment to the government is naturally impaired. These are weighty considerations, which cannot be disregarded with impunity. A parent who kept his own children in idleness and want, and fostered and nourished strangers, would be deserving of unquali- fied censure. Is not this equally true with respect to nations ? Have we not thousands of citizens unemployed and in distress, while we lavish our wealth to support and foster tbe industry of foreigners ? One consideration pleads loudly for a radical change. Our present system has hurled us precipitously from a towering- state of prosperity into an abyss of embarrassment, distress, bankruptcy, idleness, failure of revenue, and destruction of credit. May we not solemnly ask our rulers, can any change be for the worse ? POSTSCRIPT. This pamphlet was written in the hope of its arriving in season at Washington, previous to the fatal vote which rejected the new tariff, and of its evincing to the farmers and planters in that body, the utter impolicy of the system they have pursued, merely as respects their own interests, abstracted from all re- gard for the sufferings of their fellow citizens, or for the general welfare, topics already copiously discussed. It unfortunately is too late for that purpose — but is nevertheless offered to the pub- lic, in order to bring this important subject under discussion during the recess. The result of this vote is to the last degree appalling to the manufacturers. At least thirty thousand of them, in every part of the middle and eastern states, writhing in distress, many of ( them in positive misery, have respectfully memorialized con- gress for relief from their intolerable evils. But all their me- morials have been in vain. During a tedious session of live months not one of their grievances has been redressed — not one of their sufferings relieved ! This affords an awful view of our situation — of our future prospects. The mind revolts at the considei'ation. I believe it may be asserted with safety, that, under circum- stances in the least degree similar, such a total disregard of the voice of the people — such a total want of sympathy for their sufferings, has never been exhibited. Philadelphia^ Maij 10^1^20. ADDBESS TO CONGRESS. lELLOW CITIZENS, You have now to decide on a modification of the tariff, in- tended to afford protection to that portion of the national indus- try, devoted to manufactures — as important a question, proba- bh, as any ever submitted to congress, since the organization of the government. Indeed, to those of our citizens engaged in that useful department, the subject is as important as the decla- ration of independence itself. Should it be decided in the nega- tive, bankruptcy and ruin will be the fate of vast numbers of • them, which will render the benefits of independence to them very problematical, I am as ardent a friend of liberty as any man. But liberty is only valuable as it affords security to person and property. And to those who have been, or may be, ruined for want of protection, it is idle to declaim on the advantages of > liberty, when property, which gives value to life and liberty, is destroyed — and when distress and dependence are to be their portion. Few will hesitate to subscribe to the strong sentiment of Postlethwaite, " that men will sooner live prosperously under the -worst government^ than he ruined under the hestP So much has been written on the distresses and bankruptcy of ,♦.: the manufacturers — the ruin of their establishments — the pover- ty of those who are deprived of employment, and whose only property is in the labour of their hands — that the topic is al- most exhausted, and I shall not therefore touch it. Nothing I could state would enhance the affecting portraits, which have been offered to public inspection. Another fertile topic is the effect the proposed measure would produce on the natipnal prosperity. This has been copiously *^ discussed, as well by those opposed to, as those who advocate, a ' change of system. I shall therefore waive it, and for the present Sl merely request your attention to considerations of a totally dif- ferent character, bearing upon your own personal interests ; to facts and arguments, which I have subjected to strict scrutiny., and which, I trust, will stand the test of the most rigorous in- vestigation. Abstracted from the influence of national considerations, your grand object, as members of this community, is to secure good markets and fair prices for your staples. This is not only natural and allowable, but laudable. It is as perfectly right, and as obviously a duty, for planters and farmers to guard their ^ ADBR£SS TO CONGRESS. 389 interests, as for merchants and manufacturers to pursue the same system. I shall treat separately of our three great staples, cotton, flour, and tobacco. And first of COTTON. In the opposition the cotton planters have hitherto made to affording full and complete protection to the cotton manufactu- rers, I presume they supposed they were promoting not only their own interests, but those of the country at large. They were, probably, apprehensive that it would be highly injurious to throw any difficulty in the way of the commerce in a staple which, for four successive years, formed nearly two fifths of the domestic exports of the nation. Total exports. Cotton. Value. 1815 845,974,000 lbs. 82,998,747* Sl7,529,000t 1816 64,782,000 81,947,086 24,106,000 1817 68,313,500 85,649,328 22,627,614 1818 73,854,437 92,471,178 31,434,258 8252,923,937 §95,696,872 It is not necessary to criticise this policy severely. The greatest statesmen that ever lived, have erred. And it is not ' therefore wonderful that our career should be occasionally marked with error. But I may be permitted to observe, that had the subject re- ceived that deep and profound consideration which its impor- tance required, it would have been seen, that the extreme de- pression of the domestic market, and limiting the nation chiefly to a few foreign ones, could scarcely fail to be pernicious, under any circumstances. I presume it is scarcely necessary for me to prove, as it is no- torious, that the prices of our cotton have been subject to fre- ll quent and ruinous fluctuations — and that those fluctuations have i arisen from our dependence for the sale of the chief part of our jcrops, on foreign markets, wherein we meet with formidable "competitors. Great Britain has been for years, and is, the principal market for the cotton of the united states. She receives about three- fourths of this staple exported from this country. The pri- ces here have been uniformly regulated by those in Liver- pool, since we commenced the culture of cotton. And the for- * Seybert, 152. t I0 ; of course it had increased nine-fold in five years, merely by the restrictions on British goods previous to, and their ex- clusion during, the war. It is therefore easy to conceive what progress it would have made since the war, had adequate pro- tection been afforded, and what effect that progress would have had on the prices in foreign markets. Probably half or two- thirds of the quantity exported in 1818 would have been consum- ed at home. The eflfects of a glutted market in the reduction, and of a scarce one in the rise, of prices, are well known. And there- fore it is perfectly clear, that so much of our cotton as is con- sumed at home, operates at all times to prevent a reduction, and frequently to produce a rise, in the foreign markets. This places in a strong light the utter impolicy of the course we have pursued. A single fact will exemplify this position more completely than a long train of arguments. The total importation into Great Britain in 1819, was, as we have seen, 547,000 bales — ■ and the consumption 420,00Q. Yet the arrival of so small a quantity as 8000 bales, in the month of January last, produced a reduction of price, of almost ten pet cent, on the quantity then in the market ; — " Since the arrival of eight thousand bags of the new crop of *' upland cotton, the prices have fallen from thirteen pence and " three quarters to twelve and a half; and heavy at the latter *' rate. Sea Islands two pence to txvo pence half penny loxver — *' and the general opinion is in favour of a further reduction. The *' prices are thirty per cent, lower in united states cotton, as *' well as in many other articles of American produce, than this " time last year,"^ Now if eight thousand bales recfuced the price nearly ten per cent, at once, it is easy to conceive the effect of the increased quantity in the market, arising from the destruction of so great a portion of our manufactories as fell sacrifices in 1817 and 1818. It can scarcely be doubted that this cause alone would be suf" * Barber & Co's. Price Current, Liverpool, Jan 17, 1820. 396 ADDPvESS TO CONGRESS. ficient to account for the ruinous reduction that took place be- tween November 1818 and May 1819. Our policy is very different from that of the Dutch, respecting their spices in former times. When their crops were so abundant as to exceed the usual or probable demand, they destroyed the surplus quantity, in order to prevent the article from becoming a drug. We, on the contrary, by fatally allowing the chief part of the domestic market to be destroyed, so far increased the quantity in the British market, that the price was, as we have seen, reduced forty per cent. A due consideration of the foregoing facts and reasoning will render it probable that the cotton planters would have benefited even by the destruction, on the Dutch plan, of thirty or forty thousand bales of cotton in the summer of 1818 ; as they might have received more for the remainder than they did for the whole crop ; and of course that the loss of the domestic market, which would have consumed far more than that quantity, has been sig- nally injurious to the planters, and probably almost as much as to the manufacturers. I have not touched on the formidable rivalry in the cotton market, which may be confidently looked for fronv the new states in South America. In those countries, I am informed, the cot- ton is produced by a perennial tree, which requires little or no care in the culture. When rivals from this quarter are added to those we have to encounter at present, deep will be the dis- tress and suffering of the cotton planters, through the want of a domestic market, when the capital, to the amount of perhaps 30 or 40,000,000 of dollars invested in the cotton manufacture, is wasted away. Happy will it be for them, if even at this late period, they take proper measures to guard against the evil. WHEAT AND FLOUR. The reduction in the price of wheat and flour, the staples on which Pennsylvania, and a large portion of the other middle states rely, is generally supposed to have arisen wholly from the transition of Europe from a state of general war to universal peace. This is an egregious error ; which a consideration of the following facts will evince. War in Europe ceased in 1814. It was partially and for a short time resumed in 1815. The price of flour, nevertheless, underwent little reduction till 1819 and 1820, when it sunk gra- dually to a rate, which affords the cultivator, whose farm is re- mote from a seaport, but a sorry remuneration for his toils. — Thus for three or four years the price was not affected by the peace : and surely it cannot be supposed that it required that space of time to convert swords into ploughshares. ARDRESS, TO CONGRESS. 397 I shall endeavour to trace the depression to a very difFeient and remote source — to a rival likely to become every day more and more formidable : but I shall first submit to inspection a Table of the prices of fiour in Philadelphia^ Baltimore^ Nexv Tork, and Boston^ from the prices current of those places respectively. Pliilad. rialtimore. New York 1 Boston. S S % s s s 1817. Oct. 6, 9.50 9.50 10 to 10.12 10. 1818. Jan. 1. 9.50 9.25 y.37 to 9.50 10. ' to 10.25 Ap.4. 10. 9.25 9.50 to 9.62 iO.25 to 10.75 July 2. 10. 10.75 8.37 to 8.62 10.25 to 10.50 Oct. 4. 9.75 9.25 8.62 to 9.25 10.25 to 10.50 1819. Mays. 6.50 6.50 6.87 7.25 July 12. 6.75 6.50 6.25 7.25 Dec. 6. 6.12 5.62 6. 6.75 1820. Ap.24. 4.75 4.75 4.50 5.25 Export of wheat and four from the united states for sev- enteen years. Bushels of Wheat. Barrels of Flour 1803 _ _ 686,451 - - 1,311,853 1804 - . 127,024 - - 810,008 1805 - - 18,041 - - 775,513 1806 - - 86,784 - - 782,724 1807 - . 1,173,114 - - 1, 249,8 1» 1808 - - 87,330 - - 263,013 1809 . _ 393,899 . - 847,247 1810 - . 1,752 - > 778,431 1811 . . 216,833 - - 1,445,012 1812 - _ 53,833 - > 1,443,493 1813 . . 288,535 - - 1,260,942 1814 . _ - . - 193,274 1815 - . 17,634 . . 862,739 1816 . . 52,321 - - 729,053 1817 . . 96,407 - - 1,479,198 1818 _ _ 196,808 . - 1,157,697 1819 Average # Seyl 82,065 1 t Idem, 152. 758,660 3,578,831* 210,519 16,148,6761 / 949,451 ert, 153. 398 At>DRESS TO CONGRESS. Allowing five bushels of wheat to a barrel of flour, 949,451 barrels of the latter would be equiva- lent to * . . bushels of wheat 4,747,22^ Brought forward - - - - 210,519 Average of fifteen years, equal to - bushels 4,957,744 This is the average amount of the surplus of this important staple for seventeen consecutive years, of a great nation, with a population from six to ten millions of souls — enjoying natural, moral, and political advantages of the highest order — and for a large portion of the time in full possession of the benefits of a neutral situation, while more than half the civilized world were arrayed in arms for mutual destruction. It cannot fail to excite astonishment, that the single port of Odessa, which in 1803, contained but 8000 souls, and of which the circumjacent country was then a mere wilderness, in 1815, twelve years afterwards, exported 6,000,000 bushels of wheat. This export was twenty per cent, more than our annual average ! Odessa, through the policy of Alexander, the wisest monarch in Europe, perhaps in the world, has risen to eminence, to ex- tensive commerce, and to a high degree of prosperity, with more rapidity than any other spot on the globe. To judge by its past progress, it is not improbable that its present exportation of wheat equals that of the united states. The empress Catharine had formed some magnificent projects for the improvement of this town, which were defeated by her death, and the eccentric and extravagant views of her immediate successor. But Alexander early resolved to make sacrifices for the advancement of the place, proportioned to its immense im- portance. "In 1803, Odessa contained only eight thousand souls : and " the surrounding country, for many leagues, was an uncultivated " desert. No sound of rural labour broke upon the ear ; not a " house or tree ; not a spot of artificial verdure ; no trace of " agriculture arrested the eye in wandering over those extensive " wastes, which for centuries had not been furrowed by the plough, " To render this melancholy prospect more striking, dreary, and *' fearful, an ancient tumulus, piled for ages over the sepulchre of " some distinguished Scythian chieftain, or the ascending smoke " from the carbine of a wandering Tartar, occasionally appeared " in the barren distance."* To accomplish the emperor's grand views, no expense nor effort was spared. * Dearborn's Commerce of tbe Black Sea, i. p. 236. ADDRESS TO CONGRESS. 399 " Emigrants were invited from Bulgaria^ Poland^ Hungary^ ^^ Sclavo?iia, Gennany ^ and otherneighbouring countries. Houses *' were built for the accommodation oj the mechanics within the city; *' cattle and agricultural implements furnished to such adven- " turers as came to establish themselves in the environs, who " were divided into villages, and every facility afforded, which " might tend to stimulate them to exertion."* " Such were the liberal encouragements of the emperor, and " the zealous efforts of the governor, that the population of the "city, in 1811, amounted to twenty-five thousand souls ; and *' the environs, within a radius of eighty miles, were covered with " thirty thousand inhabitants, and contained forty flourishing " villages. Numerous highly cultivated gardens, and planta- " tions well stocked with herds of cattle, not only supplied the " market with provisions, fruits and vegetables ; but furnished *' large quantities of wheat, merino wool, butter, tallow, honey, *' wax, potatoes, beans, peas and other legumes for exportation. " Plantations of mulberry trees have been commenced for rear- *' ing silk worms : and thus lands, which before had no value, *' have not only become a source of individual wealth, but inte- " rested the proprietors in the prosperity of the city and whole " territory."! " Such was the rapid increase of the commerce of Odessa, " that in 1805, six hundred and forty-five sail of vessels arrived, " which exported wheat alone to the amount of 5^772^,000 rubles: *' and in 1815, one thousand five hundred vessels arrived, and " were laden with 6,000,000 bushels ofxvheat., and the various " products of Russia. The exports for 1816 amounted to up- " wards of 60,000,000 of rubles. During the year 1817, *i 3,000,000 bushels of wheat -were shipped to the single port of " Leghorn.^ the freight of -which amounted to 1,350,000 dollars ; " three hundred sail of vessels, averaging 10,000 bushels each, *' were employed in this trade : and a third of that number " transported one million of bushels to Naples^ Genoa., and Mar- " seilles. The present population of the city exceeds 40,000, " while that of the surrounding country has increased in an equal *' ratio. There are various manufacturing establishments, a " number of corn mills, distilleries and breweries. "^ Among the causes which have operated to reduce the prices of our wheat and flour so low, the success of Odessa holds a con- spicuous rank. Many of those markets, which heretofore re- ceived our flour at ten, twelve and fourteen dollars per barrel, are supplied from thence at half or two-thirds of the price. And even European wars, on which so large a portion of our policy • Dearborn's Commerce of the Black Sea, i. p. 236. t Idem, 237. \ Idem, 240. has heretofore beeii unfortunately predicated, will in future af- ford us far mpre limited markets than formerly. For the capa- city of the countries which discharge their produce through that grand emporium, is almost boundless, and the increase of de- mand to any extent whatever, will pi-oduce a commensurate sup- ply. It is therefore beyond doubt, that our range of markets will at all future times be greatly circumscribed by this formida- ble rival. Various accounts are given of the price of wheat at Odessa. The highest is fifty cents per bushel. I have heard forty cents stated. But having no means of ascertaining, I do not pretend to vouch for either. A few observations are called for on the subject of the mar- kets for our flour in Great Britain. Whenever a failure of crops in that country raises the price of wheat to eighty shil- lings sterling per quarter, the ports, in order to prevent the dangers arising from starving multitudes, are opened to foreign wheat and flour ; to ours of course. But if the average be one penn}'* per quarter less, they are closed, except that those arti- cles may be stored for exportation. In November 1817, when the average of the English wheat markets, for the preceding six weeks, was struck, it proved to be 79*. 7d. per quarter ; consequently the ports were shut to our bread stufl^s. Previous appearances had Warranted the idea, that they would continue open, and, in consequence, large ship- ments of flour had been made from this country. Five pence per quarter more would have prevented their being closed ; made an immense difference to our merchants ; and saved many of them Jrom the bankruptcy consequent on the reduction of price ! On such trifles depend the fortunes of the American merchants ! So critically nice are the calculations made by the British go- vernment ! so watchful is it of the resources of the nation ! what an example does it set in this important respect for other go- vernments ! In this country, which has had the experience and the wisdom of all nations to profit by, if the capacity of supplv be ten-fold the demand, as is the case with some articles, there never has been a single prohibition^ of any kind of provisions or merchandize whatever. During the whole of our progress as a nation, any decisive protection of manufactures has been held to be impolitic and in- jurious, as interfering with the culture of our lands, an object of incomparably higher importance in the opinion of our statesmen. The errors of this policy are now made manifest to the world. We have an over proportion of agriculturists, for whose produce profitable markets are sought in vain. Our vessels, loaded with flour, sail from island to island in the West Indies, and from port to port in Europe, and generally find it impossible to sell to ADDRESS TO CONGRESS. 401 advantage even at the reduced prices at which the cargoes are now purchased in our markets. It is scarcel)' possible to conceive of a mere wayward system than we pursue. We employ manufacturers in Europe to clothe us and we raise here the raw materials to employ, and the necessaries of life to feed them ! 1 he world may be challenged for a parallel to this policy ! Those necessaries are frequently excluded either by restrictionsor by the abun- dant crops of the nations which furnish the manufactures : — and at present, wherever received, they are, I repeat, generally either sold at a loss, or at best without profit. Yet we still continue to receive the manufactures, while our citizens, who could furnish them, are idle, and our means of payment dai- ly diminishing by the reduction of the value of our produce : and while the nation is writhing and decaying under this ruinous policy, we fondly flatter ourselves that we are the most enlighten- ed people in the world. How much sounder policy would it be, in the words of Mr. Jefferson, "■ to place the maiufactiirer beside the ag-ricu/turht P'' Then the mass of our produce would be sub- ject to no restrictions, nor limitations, nor competition. In various parts of the union wheat is now sold at twenty-five, thirty, and thirty-seven and a half cents per bushel, and dull even at those prices. Flour in remote situations is at 300, 350, and 375 cents per barrel. It is obvious that at those prices the farmer has a very slender remuneration for his labour, and the employment of his capital. Even in Philadelphia and Baltimore, flour has been sold at 425 cents. Now if some fifty thousand of those manufacturers, whom want of protection has succes- sively for years past forced " to go back and cultivate the soil^* in Kentucky, Tennessee, &c. according to the favourite phrase, were employed at their former occupations, providing clothing and other articles for the neighbouring farmers, it would pro- duce a two-fold beneficial effect. It would diminish the number of producers, and of course the surplus of agi-icultural produc- tions, with most of which foreign markets are overstocked. And it would moreover furnish the farmers with a certain domestic market instead of a precarious foreign one. I will venture to state the eftect in a loose calculation, which, even if incorrect, will enable the reader, after proper drawbacks, to form a tolerably accurate estimate on the subject : — Suppose each person of the assumed 50,000 manufac- turers now employed in agriculture, to raise a sur- plus of sixty bushels of grain annually, it amounts to ------ - bmhels 3,000,000 51 402 AUDRESS TO CONGRESS. bushels 3,000,00( But if withdrawn from agriculture and employed in manufactures, each would consume of his neigh- bours' grain annually ten bushels, equal to - 500,000 3,50' .000 The assumption might be extended throughout the union to 100,000 people. The effect would be to diminish the quantity in foreign markets to the above extent — and, of course, prevent th« gluts in those markets, which produce the pernicious reduc- tions of price, so severely felt by our farmers and merchants. And further, instead of exhausting the country by the purchase of goods manufactured in Hindostan, England and France, the farmers would procure supplies at their doors, for which they would pay in their own productions. It is unnecessary to enter into detail to prove, as it is easy to conceive, what an immense advantage this would produce, on a large scale, individually and nationally. TOBACCO The reduction of the price of tobacco in the European markets in the course of last summer, spread distress and desolation in the state of Virginia. A general paralysis of enterprize and in- dustry took place in that quarter. Many of the first families were precipitated from a towering state of affluence by this dis- astrous event It is not improbable that the losses which arose from it, directly and indirectly, w ere above fifty per cent, of the amount of the whole crop. Many men were in consequence ruined at that period, by indorsation and suretiship, who never owned a hogshead of tobacco. The result would furnish matter for an ample chapter on the subject of dependence on foreign markets. But I shall be very brief. The observations made respecting the glut of foreign markets as respects the cotton of the united states, apply to tobacco, and with rather more force ; as the practicability of extending the con- sumption of the former is far greater than of the latter, with which, of course, the market is more easily and perniciously overstocked. But so far as regards the domestic market, there is a total difference between the two articles. This market is fully secured to tiie manufacturers of tobacco. The importations have been at all times unimportant, as will appear from the fol- lowing — ADDRESS TO CONGRESS. 403 Table of imports oj manvjacturfd tobacco^ snulf^ and segars^for four years. Tobacco. Snuff. Segars. 1815 1816 18ir 1818 lb. 705 2,924 3,059 103 lb. 1,180 395 10,925 000 M. 7,657 12,206 12,500 15,723 6,-91 12,500 M. 48,086 The duties on manufactured tobacco and snufFare prohibitory — and were so intended from the origin of the governmtnt ; on a reference to the debates of the first congress, vol. I. page 93, it will appear that Mr. R. Sherman, \\ho moved the duty of six cents per pound on tobacco, distinctly proposed it with this view. The culture of tobacco in Europe was very inconsiderable for- merly. Bat during the derangements of our commerce by the lawless outrages of the belligerents, and the restrictive system which grew out of them, and more particularly during our short war with Great Britain, the scantiness of the supply in Europe, with the high prices, the necessary consequence, induced differ- ent nations to enter extensively on the culture, so that at present there is probably nearly fifty per cent, more tobacco raised in those countries, than in the united states. " The notion that Europe requires eighty or eighty-four thoU' *''■ sand hogsheads from America.^ is without Joxmdation. The " mean quantity annually exported from the united states, to all " parts from 1800 to 1807, was 80,183 hogsheads. But during *' the non-intercourse and the war, Atf e;Y// nations of Europe en- " tered very extensively upon the cultivation of tobacco ; and ^^ continue to do so to this day ; so that -what was formerly requir- '•'• ed is no criterion at all of -what is -wanted norv. It is stated "that Holland, the Ukraine, France, Bohemia, and Turkey "grow 150,0''0 hogsheads a year; but this opinion cannot be " founded on any accurate data, and must be considered as " vague."* The scarcity of united states tobacco in Europe, at the close of the war, prevented any depreciation of price, although the ex- port in 1815, was 85,189 hhds. which included a portion of the old stock. The price was maintained in the two following years, by a reduction of the quantity exported : — Being in 1816 .... hhds. 69,721 1817 . . . 64,891 * Hughes, Duncan & Co, Liverpool, Nov. 10, 1818. 404 ADDRESS TO CONGRESS. But these higli prices encouraging an increase of cultivation, particularly in Kentucky, the exportation was increased almost 30 per cent, in 1818, and amounted to 84,337 hhds. The exports from New Orleans were about 80 per cent more in 1818 than in 1817; being in the former year 24,138 hhds. and in the latter 1 4,451. Nearly all the additional quantity exported in 1818, was con- signed to Great Britain, the quantity being more than doubled. The import in 1817 was about . . hhds. 14,500 1818 . . , . 31,200 *' Any expectation of an advance in Virginia must be founded " on the prospect of an export demand ; but the large shipments " this year ofZOfiOO cfKentuckies., of which all that come to Eu- *' rope go to the continent, may be found a siijfficient substitute '"'•for Virginias., except for some particular and limited purpose. '' The Dutch and some other continental markets are very dull, " giving no indications of want of tobacco, though the winter " months are close at hand, and will soon exclude any fvirther ^' supply. There cannot, therefore, be any reasonable grounds " of improvement in prices, in v/hatever direction we look." — Hughes., Duncan, 8f Co. Liverpool^ Nov. 10, 1818. " Tobacco still remains dull., and prices have declined % to hd ."per lb. A contract has been made in London for 1500 hogs- " heads for the French market, since which the holders are *■' more firm ; but the stocks in this country are very heavy.'''* — John Richardson, Liverpool, December 25, 1818, " Tobacco. The import to this port has been 1 1 ,500 hogsheads; '•'•to London 17,700 — from this port the export has been 3300, " and the home consumption 4500 — and from London 2000 and *' 4500-^making a total taken out of both ports of 14,300 hogs- '' heads, and leaving a stock here oj" 8600., and in London 16,500, '•^ and in other ports about 2700, or a total of 27 p(X) hogsheads — " this is a great accumulation since last year, and has had the " effect of depressing prices considerably, so that they are " now nearly upon a par with those of last Christmas." Broxun £ff Co. Liverpool., December 31, 1818. The annual average consumption of Great Britain, is about 11,000 hogsheads,* and the export about 5,000. The stock therefore on hand at the close of the year 1818, as stated above, was equal to the usual demand for nineteen months. It is not, therefore, wonderful, that such a rapid decline took place in the price, which began in the autumn of that year, and continued till * " The mean consumption of 1817 and 1818 is 10,880 hhds. shipments to Ire- «' land inclusive : and twenty months export in 1817 and 1818, is 9287 hhds. ; so f that our preseiit stock is equal to one year's home use, and shipment to Ireland, J" and twenty months' export, upon the scale of the last twenty months." Hughes, JOuncan & Co. JSTov. 10, 1818. ' ADDRESS TO CONGRESS. 405 June, 1819, when the reduction averaged about sixty per cent., as may be seen in the following table. 1818. 1818. 1819 1819 Sept. 2.| Dec. 5.i Mar. 13§ Jvne 2." d. d. d. d. ■wS r Low and inferior, sound «'5 j Ordinary and mwidling, 1 i "S Good and fine, ^4 L Stemmed, Site 8* 6 to 6i 5 to 6 3Jto4 9 to n 7 to 7i e^to 7 4|to5 9| to 10| 8^ to 10 7ito 9 6 to 8i lOA to 13 8ito IEIEl TO THE FARMERS OF THE UNITED STATES, ON THE RUINOUS CONSEQUENCES TO THEIR VITAL INTERESTS, OF THB KXISTINa POLICY OF THIS COUNTRY. SECOND EDITION. " Quidqtdd delirant reges, plectwitur Achivi." Whea we see a suftering people, " with depressed minds and indolent habits, «« we do not ascribe theii- poverty to the men who govern them : but no one who « sees a mangy, half-starved flockof sheep, ever doubts that it is the fault of the " farmer to whom it belongs." — Matirice and Berghetta. " At the end of thirty years of its operation, this government finds its debt in- « creased §20,000,000 andits revenue inadequate to its expenditure ; the national « domain impairedjind g20,000,000 of its proceeds expended ; §35,000,000 drawn «« from the peoplety internal taxation ; §341,000,000, by impost ; yet the public " treasury dependent on loans. In profound peace, and without any national ca- " lamity, the country embarrassed with debts ; and real estate under rapid depre- " ciation ; the markets of agriculture, the pursuits of manufactures, diminished " and dechning ; commerce struggling, not to retain the carrying the produce of " other countries, but our own. There is no national interest which is in a health- " ful, thriving condition ; the nation at large is not so ; the operations of the go- " vemment and individuals alike labour under difficulties, which are felt by all, « and for which some remedy must be discovered. It is not a common occur- " rence in the history of nations, that mi peace the people shall call on the govern- « ment to relieve their distresses ; the government reciprocate the call, by asking thepeo- « pie to relieve theirs ,- the resources of both exhausted ; both marching to p^overty « or wealth, (as opinions may vary,) in the same road, on the same principles ; « their expenses exceeding their receipts." — Report of the Committee on Manufac- tures, Jan. 15, 1821. FIBST PUBLISHED FEB. 11, 1821, 52 PREFACE. To originality this pamphlet makes scarcely any pret6risionV The writer has already presented the subject to his fellow citi-» zens, under most of the aspects, and in some cases in the same words, in which it is placed here ; and numbers of gentlemen, of superior talents, have likewise engaged zealously and pro- foundly in the discussion. A subject so much investigated ob- viously affords bat ah exhausted field for cultivation. It may be asked, why, then, attempt to draw public attention to topics hacknied as these have been ? Why not let the sub- ject rest on its merits, as already detailed ? The reason is ob- vious. Those who take the opposite side of the question reite^^ rate arguments and. objections fully disproved and obviated from year to year, for thirty years past. And as they retrace the same ground, with the expectation of influencing the opinions and public councils of the nation, it is necessary to follow the example, or submit to the imputation that the cause is incapable of defence. An argument refuted, or a fact disproved, one oiP five hundred years ago, if advanced anew at present, rrlust be refuted or disproved by nearly the same reasons as formerly. Some of the topics, however, are new. Others are placed in new points of view, particularly the pernicious eflfects of the prevailing system on the interests of the farmers. This is ato- pic of the deepest interest to that class of citizens, and to the nation at large. If the view here taken of it be correct,- or not radically erroneous, the agriculturists of this country are as deeply interested in a total change of policy, as the manufacturers. With the latter the suffering began, but the former at present feel it with equal severity. Manufactures and manufacturers have been sacrificed to re- venue, for which our chief dependence has been placed on the impost, which, from 13^,000,000 dollars in 1811, was by the war reduced to 5,998,000 dollars in 1814 : and should war be light- ed up in Europe, and the flames envelope us, which would not be so extraordinary a circumstance as hundreds that have oc- curred within the last thirty years, will it not experience the same reduction ? In such case, how can revenue be derived from a people, impoverished and embarrassed as so large a per- 412 PREFACE. tion of our citizens are ? The committee of ways and means on the 6th inst. declared, that " the imposition of an excise at this " TIME OF EXTREME DISTRESS, would be unwise^ and is not " demanded by the state of the treasury ; that, if imposed, it " WOULD BE difficult TO COLLECT ; and^ IF COLLECTED, it " would in some parts of the union be in paper little avail- " ABLE." Can any man of public spirit, interested in the welfare of the nation, without shuddering, read such a lamentable official pic- ture of its situation, after six years of profound peace ! Com- ment is wholly unnecessary. It proclaims in a voice of thun- der, that a policy which has precipitated us into such a state, from the high ground we occupied at the close of the war, must be transcendently pernicious — cannot be too soon changed — and that human ingenuity could scarcely devise a change which would not be an improvement. We may truly say with the great lord Chatham, " If any thing can prevent the consummation of '' public ruin^ it can only be new councils — a sincere change, from " a sincere conviction of past errors.''^ A large portion of our citizens suffer intensely. The means of relief are solely within the power of congress. To that body they have applied from year to year in vain. Their petitions have been treated in many instances with such extreme neglect as not to be read or reported on. There has not been the slightest attempt to apply a remedy to any of the evils under which at least a third part of the nation is writhing. This is not the mode in which the attachment of our citizens is to be conciliated- I forbear to prosecute the train of serious and distressing ideas such a view is calculated to excite. PhiladelphittyFeb. 11, 1821. ADDRESS TO THE FARMERS OF THE UNITED STATES. CHAPTER I. Object of this address. Immense advantages enjoyed by the united states. Results naturally to have been expected. Cruel disappointment. Lamentable picture of the distressing situa- tion of Pennsylvania. Sketch of the sufferings of the zuestern part of the state of New-Tork. Delusive idea of prosperity from the cheapness of provisions. A heavy direct tax would scarcely be felt^ were industry protected. Friends and jellow citizens, I earnestly entreat your serious attention to the discussion ot the most important subjects that can occupy your minds — the causes and remedies of your present sufferings. I shall endea- vour to point out both, to your conviction. Should I succeed, there is almost a certainty, that these sufferings will be removed, as you have in a great measure the legislation of the nation in your own hands. Subject my facts, and the deductions from them, to the most severe scrutiny. Give credit to nothing which will not stand that ordeal. For the correctness of my intentions I ap- peal to that awful tribunal, before which a very few years must necessarily place me. But correctness of intention, as every day evinces, is no security against error. With all the care I have employed to arrive at correct results, a strong degree of excite- ment — incapacity — or rooted prejudice, — may lead me a devi- ous course, as they have done thousands of men, infinitely my superiors. Therefore, I repeat, investigate for yourselves. Impressed with a deep conviction that there is an identity of interest between the farmers and manufacturers of this and eve- ry country — that one class cannot suffer severely without the other partaking of the calamity — and that the distress and em- barrassments under which the farmers, particularly those in the 414 ADDRESS TO THE FARMERS interior of the middle, and nearly throughout the whole of the western states, are at present writhing, are the result of an er- roneous policy, predicated on the idea of a supposed hostility of interests between the cultivators of the soil and the manufactur- ers ; I shall endeavour to prove the utter fallacy of the idea of this hostility, and that there ^s nothing wanting to render our farmers the most prosperous class in the world, but a liberal pro- tection of their fellow-citizens engaged in manufactures. As a preliminary, I shall take a brief view of the manifold blessings, natural, political, and moral, which this nation enjoys — blessings, never exceeded, a,nd rarely, if ever, equalled. 1 . We have almost every possible variety of soil, climate, and natural productions. 2. Our country is intersected by navigable waters to an ex- tent not exceeded by any commercial country in the world. The large rivers on the continent of Europe in general pass through different nations, which m most cases impose restrictions and levy duties, whence arise burdensome obstructions to trade and commerce. Our rivers, great and small, on the contrary, are free as air. 3. Our, government is the most free of any that ever existed. 4. Our citizens are industrious, enterprizing, ingenious, and intelligent. 5. We enjoy the blessings of water power for machinery to an extent commensurate with the wants of the whole world. 6. Our farmers are almost universally possessed of the fee simple of the lands they cultivate. 7 . Fertile lands can be had in fee simple, and be cleared, for less money than the rent of lands in some parts of Europe. 8. We have no monarchy — ^no nobility — no established hie- rarchy. 9. We pay no tithes. The support of the clergy is wholly voluntary. 10. We have no exclusive privileges. Every man can follow whatever trade, profession, or calling, he chooses. 1 1 . Our national debt is very light, not more than ten dollars per head for our white population. 12. Our government is unexpensive. Our contributions to its support are only about three dollars and a half annually per head for the free population, and in the least oppressive form, that of duties on imports. It can scarcely admit of a doubt, that no natiori, ancient or modern, ever possessed more solid advantages than are here enu- merated. And it would be natural to presume, that this nation must necessarily enjoy a higher degree of prosperity and happi- ness, than ever fell to the lot of any other. It is perfectly obvi- OF THE UNITED STATES. 415 ous that nothing but a most erroneous and ruinous policy could possibly prevent that result. Indeed it would be difficult to con- ceive, if the fact did not stare us in the face, how any policy could possiialy be devised, which could strugle with and defeat such a splendid constellation of the choicest blessings, natural, moral, and political, and produce such suffering as pervades a large por- tion of this nation. From what might be our situation, let us turn our eyes to what it is. In this view, I shall, as I hinted above, chiefly confine my- self to the farmers of those portions of the country specified. 1. Agricultural produce has fallen, in the interior, so low as not to afford an indemnification for the labour and capital it re- quires ; nor will its price bear carriage 150 miles. 2. The farmers in those parts of the country are almost wholly destitute of a circulating medium, and obliged to transact their business by barter. 3. They are harassed with suits, executions, and sacrifices of property at one-half, one-third, and one-quarter of its real value. 4. Besides private debts to a most oppressive amount, a con- siderable portion of the farmers in the western states, and in the interior of New York, are indebted for instalments on their lands, which they are destitute of the means of paying, and which they have no hopes of ever being able to pay, without a total change of system. 5. One, two, and three instalments are paid for lands, which, by the present reduction of the price of produce, are not worth the balance remaining unpaid. 6. Many farmers cultivate lands, which cost twenty, thirty, and even fifty dollars per acre, of which they sell the produce, at twenty-five cents per bushel for wheat, twelve to fourteen cents for oats — and all other articles in the same proportion. To this brief statement, let me add a picture of the situation of the great state of Pennsylvania, with a population, at present, probably of about 1,000,000 souls. It is entitled to full credit, as it bears the stamp of a public document. It will apply with sufficient accuracy to all the western states. During the session of the legislature of Pennsylvania, 1819-20, a committee of the senate was appointed, " To inquire into the extent and causes of the present gen- " eral distress, and to recommend to the consideration of the " legislature such measures as in their opinion may be calculated " to alleviate the public sufferings, and to prevent the recurrence " of a similar state of things," This committee consisted of seven members, Messrs. Raguet, Hurst, Eichelberger, Markley, M'Mecns, Rogers, and.Breck, 416 ADDRESS TO THE FARMERS who drew a most distressing picture of the state of affairs, imder the following heads : — 1. " Ruinous sacrifices of landed property at sheriffs' sales ^ " whereby in many cases, lands and houses have been sold at *' less than a half a third^ or a fourth of their former value^ there- *' by depriving" of their homes and of the fruits of laborious years, "" a vast number of our industrious farmers^ some of whom have *' been driven to seek^ in the uncultivated forests of the xvest, that " shelter of which they have been deprived in their native state. 2. " Forced sales of merchandize^ household goads ^ farming *•'■' stock and utensils^ at prices far below the cost of production, " by which numerous families have been deprived of the com' '■'■ mon necessaries of life ^ and of the implements of their trade. 3. ^'■Numerous bankruptcies^ and pecuniary embarrassments of " every description, as well among the agricultural and manu- " facturing as the mercantile classes. 4. " A general scarcity of money throughout the country, which * ' renders it almost impossible for the husbandman or other *' owner of real estate to borrow even at a usurious interest, and *' where landed security of the most indubitable character is of- *'fered as a pledge. A similar difficulty of procuring on loan " had existed in the metropolis previous to October last, but has " since then been partially removed. 5. " A general suspension of labour^ the only legitimate source '■'■ of wealthy in our cities and towns-, by which thousands of our *' most useful citizens are rendered destitute of the means of " support, and are reduced to the extremity of poverty and ^^ despair. 6. " An almost entire cessation of the usual circulation of com- " modities, and a consequent stagnation of business, which is limi- " ted to the mere purchase and sale of the necessaries of life, and " of such articles of consumption as are absolutely required by "the season. 7. '* An universal suspension of all large manufacturing opera' " lions, by which, in addition to the dismissal of the numerous *' productive labourers, heretofore engaged therein, who canfnd *' no other employment, the public loses the revenue of the capital " invested in machinery and buildings. 8. " Usurious extortions, whereby corporations instituted for " banking, insurance, and other purposes, in violation of law, *' possess themselves of the products of industry without grant- *' ing an equivalent. 9. *' The overfioxving of our prisons with insolvent debtors, "most of whom are confined for trifling sums, whereby the com- " munity loses a portion of its elective labour, and is compelled " to support families by charity, who have thus been deprived of "their protectors. ''.^. FARMERS OF THE UNITED STATES. 417 10. " Numerous law suits upon the dockets of our courts^ and " of our justices of the peace, which lead to extravagant costs, " and the loss of a great portion of valuable time. 11. " Vexatious losses arising frona the depreciation and fluc- " tuation in the value of bank notes, the impositions of brokers, " and the frauds of counterfeiters. 12. " A general inahility in the community to meet xvith punc- '■'■tuality^ the payment of their debts even for family expenses^ " which is experienced as well by those who are wealthy in pro- " perty, as by those who have hitherto relied upon their current " receipts to discharge their current engagements."* Two reports made by committees of the house of repre- sentatives, confirm the above statements, by the following details : — One committee states, that " that portion of the industry of " our citizens, devoted to manufactures, is too getierally poroli- " zed; that great numbers of extensive manufacturing establish- *' ments, in which immense sums have beeii invested^ and which " might be multiplying the xvealth and happiness of our citizens^ " and the resources of the state, are lying idle and falling to '* decay ; that a considerable proportion of their proprietors are " reduced to bankruptcy ; that thousands of the workmen, whose * It is a lamentable fact, scarcely credible, that althoug-h this dreadful and ai- fecting" picture of general distress, which embraces above a third part of the population of the united states, was either presented to the view, or witli- in the knowledge of congress, at the session of 1819-20, that body adopted no mea- sure whatever towards its alleviation. It may be questioned whether a more com- plete or unfeeling disregard of such complicated suffering was ever before exhi bited by any government whatever. The words "one-third of the population," embrace the interior of Pennsylvania and New Yoi-k — and the states of Oliio, Kentucky, Tennessee, and Indiana, of which the population by the late census, is 4,137,952. Indiana 147,178 New York 1,372,812 Pennsylvania . . - . 1,049,398 Ohio ..... 581,434 Kentucky - - . . . 564,317 Tennessee - - - 422,813 4,137,952 Deduct for persons probably not affected by the general distress - - - 837,952 Remains ... - 3,300,000 The total population of the united states, in 1820, was 9,625,734. Thus it appeal's that the intense distress and sufferings of above three millions of free citizens, were as wholly disregarded by congress, as the sufferings of so many Helots, by their lords and masters, the Spartans. 53 418 ADDRESS TO THi: " sole dependence is on the labour of their hands, are destitute '* of employment^ and thus unable to support themselves and '■' their families, who are reduced to waut^ and exposed to the se- -'■• ductions of vice and guilt ; in a word, that manufacturers and *'- manufactures are every where in a state of such extensive de- " pression as to require tvhatever aid and support the state and '^*' .general government can afford^to restore them to that life and • ** vigour which they enjoyed during the late war." The other report corroborates this statement by the following , extracts from memorials to the legislature : — From the fall of every kind of produce, the scarcity of the ^alating medium, and other causes, the general distress of :*'■ This part of the state hath become so great and alarming, as to ' call for the exercise of the attention and wisdom of the legis- " lature : our most industrious citizens are no longer able to " meet their engagements: but their hard-earned property is ;' ciaily sacrificed at a nominal value, and falling into the hands ' * of a few monied speculators. ' That the mass of the people are utterly unable to pay their debts : that their property is selling at such a rate, that even the • fees of law officers are not realized : that the industrious are '* impoverished, whilst the speculating part of the community ^■^ are growing daily more wealthy : that the evil is only begin- " ning, and demands legislative interposition." To this picture of the situation of Pennsylvania, I shall add a recent one, of the western section of New York, which is its exact counterpart. It equally and irresistibly evinces how^ deep- rooted is the evil, how pernicious has been our policy, how in- tense the degree of suffering, and how imperiously a remedy is required. ) xvith- " out coots or shoes to enable them to perform the necessary la- *' bows of the inclement season. " If I am to be told that my apprehensions are extreme, then "I desire to be informed from whence the supply is to come. — ^' Can the merchant import clothing, and can we pay for it ?-^ " Will labour or produce exchange for imported goods as it " used to do ? Are there sheep enough in the counties to give " wool for half a suit of clothes to every person ? Is enough flax " raised to make one shirt a piece ? *'^But supposing these few pressing wants to be supplied in " time, the general prospect of our affairs is still very gloomy. " There can be no industry without a motive .• and it appears to " me there is great danger that our people xvill soon limit their " exertions to the raising of food for their families. It is very appar- " ent that much less ground is sown and planted the present fall " than in late years. A people without income, and without indus- " try will soon neglect those institutions which tend to humanize, '* civilize, and improve mankind ; there cannot be much ambition *■'■ or hope ; education will decay, and the decencies of social life *' be neglected : Such is the stupid and barbarous condition of " every people in the world who are not spurred on to industry " by a just reward for labour. " This picture of evils, in all its colouring, is a faithful repre- " sentation of those parts of the country only, which are new — "where the lands are unpaid for — and which are rcwo^e/rom " market. But, with mitigated shades., it is the picture of the * " A quantity of good wheat stored at the mills, has been sold at 37^ cents, at «« a voluntary saJe. A quantity of excellent Hour scift to New York, and sold in « the most economical manner, Wfis found, on an accurate statement, to net 17e, «6«/.perbarrel, (S3 190" ' - 420 ADDRESS TO THE " xvhote northern half of the united states. As a people we are '^^ growing' poor. Those who have capital can find no safe and " productive employment for it. Commerce and navigation lan- " guish ; agriculture xvill not pay expenses. We need to import " immensely more than we have means to pay for. The cities '■''■ are eating up their capital ; the country is wearing out clothes " without sufficient means to get new ones^ either by manufac- " ture or purchase. Meantime our importattojis of goods go on ; " specie is plenty in afexv hands — but the country at large., though " overflowing with abundance of its products., has nothing with " which to buy money ; and all the ordinary pursuits of life art '•'■ palsied for xvant of a medium of exchange.'''' These statements are given at full length, because there are many citizens, in and out of congress, whose circumstances se- cure them from a participation in the general distress, and therefore cannot believe in its existence. They decry those who, by pointing out the evil, in its fullest extent, evince the neces- sity of applying a speedy and radical remedy. This is an ex-i-' trem.ely erroneous procedure. The unvarnished truth in public.' and private affairs, is incomparably more safe and more politic, than deception or concealment, with whatever view they may be. employed. It is as unwise and pernicious to disguise and palli>6 ate the evils of the state, when it is writhing in distress, as for a patient in a dangerous malady to conceal the extent of his disease. A writer, in a very respectable gazette, lately scouted the idea of distress, when five pounds of flour could be purchased for 12 cents ! A most admirable illustration of political economy !— - What avails it to the labouring man, who seeks in vain for em- ployment, that flour can be procured at this low rate, and other articles in the same proportion, when he has not wherewith to purchase ? His labour is his only fund. The prevailing sys- tem annihilates that fand, while the resources of the na- tion are devoted to support foreign labourers. Better far it were, that he had to pay fourteen dollars per barrel for flour, a^^' he did some years past, and earned five or six dollars per week, than that flour should be, I v/ill not say at three or four dollars,/ but even at half a dollar per barrel, while he is unable to procure*' that employment, the want of which disables him from pur- chasing at any price. On the situation of the western states, I cannot give any infor- mation, of equal authenticity ; that is, in the documental form,— FARMEK.S OF THK UNITED STATES. 421 But numberless private letters, from respectable citizens, fur- nish similar statements, and prove the existence of an equal de- gree of distress. Just as this page was going to press, I was furnished with a re- cent New Orleans price current, in which fresh flour is quoted dt three dollars to three dollars and a half — and sour at one dol- lar and a quarter. The quantit}^ of sour flour is very great ; as the glut in the market occasions it to be long on hand — and finally renders no small portion of it unfit for use. A letter, just received from one of the most respectable mer- chants in Philadelphia, engaged in the New Orleans trade, states, as follows : — " Wheat without price or sale ; and flour scarcely saleable even at three dollars and a half for the best. Neither of these articles will pay from the ivestern country this year?'' From the preceding view it is manifest that the best form of government affords no security for prosperity. The pinching distress under such a form of government, may, by impolicy, be as great and even greater, than under despotisms and wasteful governments. What, in a word, can be more hideous, so far as property is concerned, (and what avails a free goveniment, if it does not afford protection to property, or security' for its acqui- sition ?) than — " a general scarcity of money'''' — as " general a suspension of labour''^ — " ruinous sacrifices of landed property at sheriffs'' sales^ whereby lands and houses have been sold at less than a half a th'ird^ or a fourth of their former value''* — '''•forced sales of merchandize^ household goods ^farming stock and utensils^ at prices far belo-w the cost of production''' — "an almost entire cessation of the usual circulation ofcom?nodities — " an universal suspension of all large mamfacturing operations — the overfoxu- ing of our prisons with insolvent debtors'"' — '-'•property selling at such a rate that even the fees of ojffice are not real'ized^''^ ^gX^^c. * Some gentlemen severely censured me last year for the strong pictures I drew of tke calamitous state of affairs, and for " tlie misen," wliich I asserted spread over a large portion of the land. They even went so far as to assert that thSSe writings were likely to be highly pernicious to thecountn', by their effects in Europe, as they might prevent emigration from that quarter. They denied the existence of " misery" in any shape or form. With those docti-ines I cannot accord. The best mode of inducing our iiilers to apply remedies to the public distress, is to depict that distress in its proper coloiu-s. To decide on tlie subject of *' misery" it is necessary to ascertain what " misery" is» Walker explains it — " wretchedness — ^unhappiness. — calamity — misfortune." I respectfully ask those fastidious gentlemen, whether " numerous families being deprived of the com- man necessaries of life" — the "prisons overflo-Ming xviihintolvent debtors" — and" vast itumbers of industrions farmers being driven from their homes, and forced to seek in the uncidtivated forests of the -west, that sfielter of which they have been deprived in their native state," be not as complete proofs of misery as can be exhibited ? '422 ADDRESS TO THE However extraordinary or unpalatable it may be, I will risk the consecjuences of stating a bold truth, that more distress than is here displayed might be sought for in vain, under some of the worst governments in Europe. And further, that this country would be incomparably more prosperous, if we paid direct taxes to the amount of ten, fifteen, or twenty millions of dollars per annum, provided the productive industry of our citizens were adequately protected. While those who depend on their labour, are steadily employed — and those who carry on business have a ready market for the proceeds of their industry, high taxes are never oppressive. To illustrate this position, I will take the case of a farmer with only one hundred acres of land, and a family of ten per- sons. I will suppose his land to produce only fifteen bushels per acre ; and his surplus, beyond what he consumes, and what he sells, in order to procure such necessaries as he is obliged to purchase, to be only six bushels per acre, or six hundred bushels in the aggregate. Assuming, as I hope will be admitted, that the gain by having a market at his door, instead of sending his produce to a distance of two, three or four hundred miles, as is the case with so many of our farmers, would be at least a quarter dollar per bushel ; the establishment of manufactures in his neighbourhood, which would furnish such a market, would se- cure a clear gain of one hundred and fifty dollars per annum ; whereas his share of a direct tax of twenty millions of dollars per annum, could not be ten dollars. I might have assumed an increase of price of three quarters of a dollar per bushel, which would make the gain four hundred and fifty dollars. The above reasoning applies equally even to journeymen, whose wages I will estimate at only five dollars per week, of whom a large proportion have for a considerable time been un- employed a quarter or half their time. One quarter of his time, lost to a journeyman, work- ing at five dollars per week, would be per ann. - ^65 Deduct amount of tax on a family of sis persons - - 6* Saving ___--_--- 59 I* This is an exti-avagant assumption for a person in this sphere of life — and the more completely proves the theory. FARMERS OF THE UNITED STATES. 423 CHAPTER II. Alleged causes of the general distress. Transition from a state of war to peace. Great increase of banks., and their misma- nagement. Fallacy of these allegations. Exports during and since the war compared.- Real amount of the increase of hank- ing capital far below what is generally believed. List of coun- try banks in Pennsylvania paying specie. Vessels employed in the India trade. Enormous export of specie. The preceding chapter contains a view of the immense ad- vantages this nation enjoys, and of the lamentable situation in which a large and interesting portion of its citizens are plunged, a situation s '^ little corresponding with those advantages. I shall now endeavour to unfold the causes which have produced so to- tal a failure of the expectations which might have been rational- ly formed of the state of this country. Various opinions have prevailed on this subject — and three principal sources of our calamities have been stated. 1. The transition from a state of war to a state of peace, with the general change in the state of affairs in Europe. 2. The undue extension of banks, and their mal-administra- tion. 3. The paralysis of so large a portion of the manufacturing industry of the country by extravagant importations. Transitioji to a state of peace. It requires but a very cursory examination to see, that the operation of this cause, if not wholly ideal, is at least prodi- giously overrated. In fact, it would appear more rational to sup- pose that this " transition" would be salutary than otherwise. Much of the prosperity of all nations depends on having good markets for their surplus produce. The want of them produces stagnation, distress and embarrassment. And as the late war in a great measure deprived us of those markets, and " the tran- sition to peace" restored them to us, it is not easy to compre- hend how it can be fairly charged with producing such baleful consequences. During the war, our exports were reduced within very narrow bounds. Hostilities commenced in June 1812, and peace was signed on the 28th of December, 1814. The war of course con- tinued but about two years and a half. The exports of 1812, were !S30,032,100. It is impossible to ascertain what propor- tion of that amount was shipped before the declaration of war. I shall therefore omit that year, and compare the exports of 1813 and 1814, with those of the subsequent years, in order to decide this important question, and to evince the yery unstable 424 ADDRESS TO THE foundation on which rests the opinion I have undertaken to combat. The domestic exports of 1813 were g25,008,152 1814 6,782,272 S3 1,790,424 being an average of less than sixteen millions per annum. The domestic exports since the war, have been 1815 - - - - - ^45,974,403 1816 - - - - - 64,781,896 1817 - - » . 68,313,500 1818 - - - - . ^^ 73,854,437 1819 - - - - - 50,976,838 1820 - - - - - - 51,683,640 )355,584,ri4 being an average of nearly sixty millions per annum, or almost four times as niuch as the average of the exportation during the war. In one sense the " transition" may be said to have produced our calamities. It took away the bar that previously existed against the deluge of foreign merchandize by which so large a portion of our manufacturing establishments were subsequently prostrated, and their owners ruined. More of this anon. That so great an increase in the exports of a country could have any other than a beneficial effect, will not be asserted by any man of candour : and therefore the idea that this produced the general distress is swept away by the force of fact and faij- induction, as completely as the mists and fogs which overspread the ho;rizon are swept away by the radiant beams of the sun in his meridian splendor. It can scarcely be necessary to add any thing further on this subject. But there is another fact w^hich so strongly corrobp^ rates the conclusion here drawn, that it would be injustice to the cause, to omit it. War ceased every where early in 1815 ; aild had " the transition from a state of war to astute ofpeace^"* pro- duced the ruinous situation of affairs which exists at present, its most oppressive effects would have been felt immediately. Dis,* tress and calamity would at once have overspread the face pf the land, and the country would have been gradually restored in ADDRESSES. 425 the following years, to that state of prosperity', to which its va- rious blessings afford it a fair claim. But what is the fact? with the exception of some of the manufacturing districts, where in- dustry was paralized early after the war, by a most immoderate influx of foreign merchandise, as, for instance, more particularly Pittsburg, Wilmington, &c. &c. the country in general was pros- perous, or at least the range of distress was limited in 1815, 1816, and part of 1 8 1 7. It was only in 1818 that stagnation and embarrassment began to spread generally, and, in fact, large por- tions of the country did not feel them even till 181 9. It is to be presumed that these facts are completely conclusive, and finally settle this important question for ever. Operations of the Banks. The first alleged source of the prevailing distress being set aside, it is necessary to examine the second, that is, the extra- vagant extension and mismanagement of banks and banking cap- ital. That the chapter of banks is a deep stain on the annals of this country, cannot be denied. In various quarters, it has ex- hibited a high degree of turpitude. In some places, where banks were wholly unnecessary, they were established, for their own particular advantage, by a few individuals, who engrossed a large portion of the stock for the purposes of speculation, and as soon as it was raised to 20 or 30 per cent, above par, they sold out, having cleared hundreds and thousands of dollars ; and, in many instances, without the advance of a single dollar. In some quarters, likewise, banks have been grossly mismanaged, through the sinister views, and as often through the inexperience of the directors. But that a large portion of them have been conducted fairly and honourably — and that the evils the others have produced, have been extravagantly over-rated, is more than probable, as may, in some degree, be inferred from the following facts, respecting these institutions in Pennsylvania, in which state the outcry against extravagant banking has been as loud as in any other part of the union. The great " litter of hanks'''' of 1814, has been a fertile topic of invective in and out of the state. Pennsylvania at present, as I have already stated, contains about 1,000,000, souls — 46,O0O square miles — in 1810, it Carried on manufactures to the amount of 44,194,740 dollars — audits domestic exports in 1816, were 7,196,246 dollars. And is it. possible, th^t the extra bank capital, created in this state in 1814, ' which, beyond the limits of Philadelphia, was only about 5,000,000 of dollars, could account for distress and embarrassments, which were not universally felt for vears after, and which increase in pressure, in proportion to our distance from, that year ? Had 54 426 ADDRESS TO TH£ fjARMERS this whole sum, or twice as much, been most egregiously mis* employed, or even wholly squandered away, although it would have ruined many, it would not l>ave been felt by the state at large, provided we had a market for our productions, or had our exports borne a proper proportion to. our imports. But thev subject may be presented in another point of view. The country banks, which went into operation under the act of 1814-, were thirty-three in number. Of these the notes of no less than nine are at present at par in the city of Philadelphia — and those of eight others are only at one, one and a half, two, and three per cent, discount, notwithstanding the pressure and embarrassment of the times. It will not admit of a doubt that these banks must have been not only ably, but in general correctly managed, to maintain specie payments from the year 1817, when those payments wiere resumed, to the present time. It is, however, beyond a doubt, that much mischief has arisen from the banks — and that many useful and worthv men have been ruined by their operations. But, as I observed on a for- mer occasion, they have, in many cases, been far " more sinned agaii-st than sinning." The extravagant drain of specie for the China trade, exhausted them of the basis on which the credit and security of banking operations rest, and left them no alterna- tive but to press on their customers, or to stop the payment of specie. They began with the former measure, which produced great distress gind emb^irrassment — but many of them, after all their efforts, ;found it impossible to continue specie payments. I annex a list of those seventeen banks, alluded to above, with ,the state of their notes in the city of Philadelphia, and the amount of their capitals. Farmers' Sank of Lancaster, Easton, - - . . Germantown, - . . - Northampton, ... Monty-emery County, Fmmers' Bank of Bucks County, jHan-isbuFg", - - . . Delaware County, Chester, .... Farmers' Bank of Reading Lancaster Bank, ... 3fork Bank, ... Chambersburg, - . . iGettysburg-, ... Carlisle Bank, • ... Bank of Swatara, Pittsburg, - . . - discount per cent. Capital. Par S 600,000 do. 214,770 do. 152,000 do. 125,000 do. 76,286 do. 60,090 do. 168,036 do. 77,380 do. 90,000 3 300,350 1 159,710 H 192,940 H 266,765 1* 154,553 H 162,950 H 75,075 2 341,035 STet capital of th? thirty-three banks ]S3,216,940 8-5,000,000 OF THE UNITED STATES. 42r Thus, the capitals of those banks, chartered in 1814, which, by mismanageinent or the drain of specie, or both, have been unable to supp- rt their credit, by the continuance of specie pay- ments, are about 1,800,000 dollars. To ascribe the mass of buf- fering, under which this mighty state is agonized, to the opera- tions of these, and indeed of all its banks united, would be as absurd, as to ascribe the death of a man who had been for years taking slow poison, to a slight fever or cholic, which immediate- ly preceded his dissolution. To enable the reader to form an idea of the excessive extent of the drain of specie for the India trade, I annex a list of the vessels, which, on the 3d of February, 1818, weri:s ; found ready belief with a large portion of our influential citizens ; and aided to defeat the applications of the manufacturers. It was further asserted, that sufficient capital could not be spared for the purpose of establishing manufactures ; that the at- tempt would force capital into employments less, from those which were more advantageous ; and therefore that e\ en on this ground, were there no other objection, the project was prema- ture — would be injurious — and ought to be discountenanced. The plain inference from these assertions was, that when la- bour became cheap, and capital abundant, then manufactures would arise as it were spontaneously, as the countiy would be " ripe for them?'' Time always decides between truth and error — strips the lat- ter of its glare of plausibility — and exposes its intrinsic defor- mity. Pity, however, that this result most frequently does not take place till error has done immense mischief, as has been the case in this instance. The present state of affairs indubitably proves, that to the success of manufactures in this country neither a reduction of the price of labour nor any additional ca- pital was necessary ; and that " the one thing needful," was such governmental support as all the wise nations of Europe afford their manufactures. The period so long hoped for by our political economists has arrived, when the country is, according to their views of the subject, " r?/?e" for manufactures. Labour is now so low that great numbers of people in various quarters of the union, have, during the last eighteen months, worked for their board alone — and thousands have been unable to obtain work on any terms. — Our cities swarm with men, women and children, who, able and willing to work, but, unable to procure employment, immoder- ately swell our lists of paupers, are supported by the overseers of the poor and by soup-houses — and a gangrene on that society to whose wealth and prosperity they might daily make additions. A statement was lately published by the society for the preven- tion of pauperism, that there were thirteen thousand paupers, in the city of New York. I cannot ascertain the number in Phila- delphia ; but it is oppressively great. Capital, too, is so abundant, that the owners cannot find ade- quate emploj^ment for it. They dare not invest it in manufac- turing establishments themselves, from the awful memento af- forded by the fate of so large a portion of the manufacturers who 9iinistered so usefully to the wants of the country during the 432 ADDRESS TO THE FARMERS Avar, and who were so shamefully and ungratefully sacrificed by the policy pursued soon after its close. Nor can they with safe- ty lend it to manufacturers, whose prospects are so precarious and so gloomy. This, then, according to those citizens, is precisely the time when, from the cheapness of labour, and abundance of capital, the nation is ripe for manufactures — and when they ought to flour- ish spontaneously. But, alas ! these " day dreams'^'' of our political economists are not only not realized, but are put down forever. Manufactur- ing establishments, on which millions were expended, and which prospered during the war, when labour was dear, are now closed, and sinking into ruins, when labour tan be had on the average for two-thirds of the price it commanded at that period — when the necessaries of life are in almost unexampled abun- dance, and cheaper than they have been for above thirty years — and when, I repeat, the wealthy part of the community know not how to find employment for their capital. On the question of " ripeness for manufactures," the follow- ing opinions of Gen. Jacob Brown, as enlightened an agricul- turist, as he proved himself during the war a brave and skilful commander, are entitled to the most serious attention — ought to settle this question — and produce a totally new system of policy* It is impossible for a mind open to conviction to resist the force of his reasoning. " Other governments do not leave manufactures to force their " way, without public aid, into our markets. They grant premi- " ums and bounties, for the purpose of enabling their manufac- "turers to undersell their rivals. Besides, combinations are ^'- formed among joreign manufacturers to beat down a manufacture '■'■that is beginning to show itsef in a country^ which they have " been in the habit of supplying — combinations, acting upon the " principle of making a temporary sacrifice to secure a perma- " nent good, and looking, too, to their own government, when the *' sacrifice is great, for some sort of remuneration — a remuner- " ation often cheerfully bestowed. Thus our country being ripe " for the introduction of a particular manufacture, some public " spirited citizens embark a large part of their property in the '* enterprise. After they have^ by great expense^ brought their ^'■schemes to inaturity^ and begin to be cheered with the prospect " of success^ the country is flooded with the article by foreigners^ " who sell it at a very loxv price ^ and continue so to act, until the " domestic establishment is ruined, calculating, that the com- " plete failure of the plan, with the ruin of the persons engaged *' in it, will prevent all similar attempts in future, and thus se- " cure to them, for a lopg time, the undivided nossession of the " market. OF THE UNITED STATES. 433 " Here, then, the domestic manufacture fails ; not because " the country was not ripe for it : not because, things being left " lo their natural course, it could not thrive. It is beat down by '' an artificial policy. And we may take it for granted, that the " cupidity of foreigners will postpone the suecessfid prosecution " of manufactures in this country, long beyond the natural peri- " od for their introduction, unless our own govei-nment adopt a " strong system of counteraction. "When we consider how very difficult it is at first to compete " with old establishments, which have attained great skill in the " business, in which they are to be contended with, and hav6 " been long in undi\iced possession of the market, with the fear " of failure, which always exists in reference to new enterprises ; *' it will not be thought extravagant to say, that a country viay '* remain destitute oj manij important manufactures fo'r half a cen- '•'' tury after it has really became ripe for theni^ unless relieved " from the pressure of the difficulties in question, and encouraged *' to look them strongly in the face, by a well-founded reli- " ance on the patronage of the government. In no country have *' manufactories, requiring great capital and skill, sprung up, in *' the first instance, of their own accord, in consequence of the " ripeness of the country for them. No — they have always been " inti'oduced by efforts of public policy. How emphatically was " this the case with respect to England ! If she had acted upon the " principle now contended for, that manufactories will always *' grow up as soon as it is the interest of the country that thej- " should do so, she never would have entered into competition "with Flanders. Instead of rising to her present state of wealth " and resource, she would have sunk into a second or third rate "power — comparatively poor and inefficient. And the instan- "ces are not rare, as if in derision of this principle, in which " countries, low in manufacturing industry, have been raised in " a few years, by a wise, protecting policy, to a very high point' " of prosperity and wealth. " Prussia, under the government of the sa:ga'cious f'redencky " furnishes a splendid exemplification of this remark. In his " reign, the population and Xvealth of Prussia were more than " doubled; to which nothing so much contributed as the policy, "which he so firmly and persevefingly pursued, of introducing " the most valuable branches of manufactures into his dominions. " What would have been the reply of this great man, if he had " been told, that it was unwise in him to force up ma:nufactures? " that they should be left to the natural course of things ?— " Things, in this respect, can neveT take thei'r natural course, " until a wise government, by strong protecting duties, gives an "opportunity for the establishment' of manufactures within its *' limits, and carrying them through the period of infancy. — 434 ADDRESS TO THE FARMERS " Things are prevented from taking their natural course, by the " artificial policy of foreign governments, and the avaricious " combinations among foreign manufacturers. The moment we "attempt to get rid of then- monopoly, by efforts to supply our- " selves, thev defeat those efforts by a temporary departure from " their ordinary conduct — the Avounds inflicted being not so " much by blows, given in fair combat, as by those, which, if " continued for any length of time, would destroy equally him " who gives, and him who receives them."* II. That protecting' duties would tax the many for the benefit of the few — giving the latter a monopoly at the expense of the for- mer. This objection enlisted the honest feelings and prejudices of a large portion of the community against their fellow citizens engaged in manufactures. They fondly believed that compli- ance with their wishes, was little less than a license to depredate on the community. It would not be easy to point out an error in political econo- my, which has inflicted so much distress on a nation, as this has done on the united states. More than three fourths of the cala- mities which we have suffered for years past, have arisen from this source ; as it has been the principal means of preventing such a modification of the tariff, as would have averted most of the evils under which this nation is writhing. It is an egregious error to suppose that high duties or prohi- bitions afford a " monopoly'''' to those in whose favour they are imposed. In order to clear up this point, it is necessary to as- certain the precise import of " monopoly ^'' which the most ap- proved dictionaries explain to mean " the exclusive privilege of selling any thing.^'f Now a moment's consideration will evince that there is no power in this nation which can or dare attempt to confer, " the exclusive power of selling any thing^'' except in the case of inventions or discoveries, which may be patented. But this is a case not contemplated by the objection. "We have imported in a single year, to the injury of the culti- vators of the soil, 1,027,95 1 //'A', of cheese,:!: notwithstanding it ^as subject to a heavy duty. Suppose the article had been wholly prohibited. Would there, in that case, be any thing like " a monopoly?'''' Not in the least. The making of cheese would e open to every citizen of the united states — manufacturer or merchant, as well as agriculturist, without a single exception. In like manner, were cottons or woollens wholly prdbibited, * Address of Major-General Jacob Brown, Vice-President of the Agricultura.' Society of Jefferson county, New- York, to the Society, Sept. 1819. t See Walker and Johnson. i Seybert, p. 165, OF THE UNITED STATES. 435 instead of being subject to a duty of thirty-three per cent, as con- temphited by the new tariff, there would not be the slightest trace of '"■ tnonopo/y ;^- as every citizen might, and hundreds would, at once commence the manufacture. The prices at first would proijably in both cases rise conside- rably. But the higher they rose at first, the more certain and the greater would be the reduction afterwards. Allured by the extraordinary profit , so much capital would take that direction, that a glut would be produced — and hence the result would be, what has ever followed a glut, that the article would sink below its value. On this subject the opinion of Alexander Hamilton has been repeatedly and deservedly quoted. It is conclusive and unan- swerable : — " Though it were true, that the immediate and certain effect *' of regulations controlling the competition of foreign, with do- *' mestic fabrics, was an increase of prices ; it is universally true, " that the contrarij is the ultimate effect xvith everif succes.sjui ma- " nufuctiire. When a domestic manufacture has attained to " perfection, and has engaged^in the prosecution of it a compe- *' ttnt number of persons, it invarvibly becomes cheaper. Being *' free from the heavy charges which attend the importation of " foreign commodities, it can be afforded cheaper, and according- " ly seldom or never fails to be oold cheaper, in process of time, *' than was the foreign article for which it was a substitute. " The internal competition which takes place, soon does away *' every thing like monopoly ; and by degrees reduces the price " of the article to the minimum of a reasonable prof t on the capi- " tal employed. This accords with the reason of the thing, and *' with experience."* This opinion is strongly corroborated by the facts contained in the following letter, from as respectable a citizen as any in Philadelphia : — Sir, January 30//?, 1820. " In answer to your note of 24th instant, I reply, that the ar- *' tides in our line of business, which have been selling at reduced " prices since they were manufactured in this country, are win- •"' dow-glass, white lead, oil of vitriol, Glauber's salt, and nearly " all the chemical articles. Window-glass 8 by 10 formerly " cost the importer from 9 to 9^ dollars per box ; the manufac- " turers here now sell at 7 dollars. White lead formerly cost " from 14 to 15 dollars ; we are now selling at 12 dollars. Oil " of vitriol formerly cost 1 1 cents per lb. the manufacturer here " now charges 8 cents, and the imported article has lately sold * Hamilton's Works, Vol. I. Report on Manufactures. 436 ADDRESS TO THE FARMERS " in this'city at 6 cents. Glauber's salt formerly cost 305. ster-> " ling ; but, by the late prices current, 185, sterling ; it would '' therefore cost to import it about ^ cents per lb. including the " duty, which is 2 cents per lb, ; it is now selling by the manur " facturer at from 2i to 3 cents per lb, and has not been above ^' that price for some years past. With respect to chemicals, " there is no probability of their being again imported ; the com- ^' petition here will ever keep down the prices ; nor is it proba- " ble that window-glass will be imported, as the/manufactories ^* now established can supply more than the demand ; the prices " will therefore be kept down by competition. *•' I aiTj very respectfully, ,t6 Yours &c. " SAMUEL WETHERILL. *•' Mr. Mathew Carey." To these facts it may be added, that, in almost every case, the establishment of a manufacture in this countrv has kept down the price of the imported article. One item, of public notoriety, often quoted, but unfortunately nat sufficiently attended to, de- serves more detail than any other, as affording a most practical illustration of this theory . Immense quantities of low priced muslins were formerly im- ported into this country from the East Indies, which were in- voiced at 6, 7, and 8 cents per yard, and sold in our markets at 20 and 25 cents. As they did not yield much to the revenue, and interfered with the consumption of our cotton wool, they were subjected to a duty equivalent to a prohibition : that is to say, all imported cotton goods, below 25 cents per square yard, were dutied as if they had cost 25 cents. For example — 1000 square yards muslin at 8 cents . . ^80 00 Duties on 1000 square yards at 6i cents . 62 52 This is about 77 per cent, and has altogether closed our mar- kets against those goods. In consequence of this duty, so much capital has been employ- ed in that manufacture, that American cotton goods, greatly superior in quality and texture, are now sold throughout the united states at 14 and 15 cents, and afford a fair profit to the manufacturer, and a great saving to the nation, independently of the immense sums they retain in the country. OF THE UNITED STATES. 437 This was a proper opportunity of testing the soundness of the specious idea of " taxing the manij for the benept of the fhu''' by prohibitions or prohibitory duties. It did not stand the test. It was found hollow and fallacious, however plausible in appear- ance. This fact ought of itself to have finally settled the ques- tion beyond appeal. Steam boats afford another satisfactory test, of which the re- sult is the same. The capital requisite to build them being very great, so as very much to circumscribe competition, and being in some degree patented, it might be expected that high prices would be extorted, and the public be imposed on. But in this, as in all other cases, facts put down the theory completely. The rates of freight and passage in these useful vessels are every- where moderate ; and in many cases competition has reduced them so low, that the boats are a losing concern. Thus it happens in a variety of manufactures. As soon as they are completely established, and have the market secured, so many persons engage in them, and so great is the competition, that the prices are frequently reduced below those which afford a fair profit ; and many of the competitors, whose means are slender, are actually ruined. I shall doubtless be pardoned for stating the great effect of competition in a case somewhat analagous, which is calculated to throw important light on this subject. The West Indies, de- pending in general for their bread stuffs, on the united states, are frequently in a state of dearth, approaching to famine. Pri- ces, rise to an exorbitant height, so as to afford an immoderate profit to those who can reach the markets in season. So great is the competition, that, in the course of a few weeks, some- times a few days, the price is reduced within reasonable boundsj and often so low as to produce actual loss. A few months since, the price of flour at the Havanna was from twenty-five to thirty dollars per barrel. Two or three cargoes ai-rived, and were sold at those rates. The intelligence reached this country, and so many vessels were despatched hence, and arrived there, nearly together, that the price was re- duced to twelve or fourteen dollars, although the duty is St>| per barrel, and freight probably half a dollar. III. That protection of manufactures xvould lead to extortion and imposition^ as is said to have taken place during- the late war. This objection has been refuted times without number, and a sense of propriet}?- ought to consign it to oblivion. But ha^'ing recently been confidently advanced by an agricultural society in Virginia, not only as if it had never been answered, but as if it 438 ADDRESS TO THE FARMERS were unanswerable, it cannot be improper to devote a page to the discussion of the foundation on which it rests. To this allegation it might be sufficient to reply, that those who raised the price of flour from four dollars to fourteen — of tobacco from ninety-five dollars to one hundred and eighty-five perhhd. — of cotton from twelve to thirty cents — and of wool from seventy-five cents to three and four dollars per pound, ought to be eternally silent on the subject of extortion. However, I shall not rest the defence on this ground. The war cut off" the supplies of foreign goods of almost every kind. As there was a vast amount of capital unemployed, and a prospect offered of a steady and profitable market, manufac- turing establishments arose as it were by magic. Numbers of merchants and farmers embarked in the business. All novel undertakings, particularly when on an extensive scale, are liable to various obstructions, difficulties, and disad- vantages. These establishments had their full share. The owners of sites for mills and machinery, took an ungenerous ad- vantage of the opportunity, and demanded exorbitant prices for them. With these demands the manufacturers were obliged to comply. Skilful mechanists were extremely rare — and of course sold their services at extravagant rates. The number of workmen bore no proportion to the demand for them : and they, like the rest, levied heavy taxes on the manufacturers : and finally, the farmers who had sold their wool at fifty and seventy- five cents per pound before the war, gradually raised it to one, two, three, and even, for a short space of time, to four dollars.* To supply the deficiency of workmen, numbers of apprentices were taken, who were to be instructed in the business. During this process, the want of skill necessarily produced heavy losses and deterioration of the manufactures. One other evil attended the manufacturers at this period. Many of them who entered on the business with large capitals, which they believed would have been amply adequate for the purpose of erecting the necessary mills and machinery, found those capitals exhausted before half or two-thirds of the works were completed — and were reduced to the alternative of either, borrowing money to carry on the business, or sacrificing all they had expended. Now, combining all these circumstances together, is there a man with any pretensions to candour, who will not be ashamed to join in the senseless clamour against the extortion of manu- facturers during the war, when raw materials, labour and ma- chinery, were raised in price ; and when, although the raw ma- terial, of the woollen branch in particular, was advanced three * Grotjan*ri pricejlpuygent, ^JJqt* 14, 1814. OP THE UNITED STATES. 43^ or four hundred per cent, the cloth was only advanced about fifty, sixty, or seventy per cent, on the peace prices of the im- ported cloth ? Let it ifurther never be forgotten, that the domes- tic manufacture was at all times during the war below the im- ported article, of which it steadily kept down the price. Broad cloth, notwithstanding the great extent of smuggling, would pro- bably have risen to thirty dollars per yard, but for the domestic manufacture of this article. Similar justification might be offered for any rise of price in other departments ; but I shall only add one. Tin was scarce, and in few hands. The merchants raised the price eighty to one hundred per cent. Were not the manufacturers of tin-ware necessarily obliged to raise that article accordinglj^ ? CHAPTER V. Ruinous consequences, to the farming interest^ of the depression of Manufactures. ConversioJi of manufacturers into farmers — of customers itito rivals. Having presented a sketch of the distresses of the country — the causes to which they have been ascribed — the grounds on which relief has been refused — and endeavoured to trace those distresses to their real source, I now undertake to prove the im- mense injury to the farming interest which has been produced by the policy we have hitherto pursued — as well as the benefits which would have necessarily flowed from a contrary policy. The injurious operation of the prevailing system has display- ed itself in a variety of ways : but I shall only particularize four, which have borne oppressively on the farming interest. 1 . It has converted a large portion of mechanics, manufac- turers, and artisans into cultivators of the soil, and of course into rivals, instead of customers. 2. It has destro\'ed a mqst invaluable market for raw mate- rials, and for a gieat variety of other articles, such as fuel, tim- ber, and various horticultural and culinary productions, for which manufacturing establishments afford a ready market to the farmers in their vicinity, and few of which will bear the ex- penses of transportation. 3. It has discouraged the immigration of manufacturers, me- chanics, and artisans, into this country — and 4. It has deprived the children of the farmers of profitable employment in manufacturing establishments. 440 ADDI^ESS TO THE FARMERS Should I establish any one of these points, and still more if t establish the whole, it will appear very evident, that the fai'mers, who have always had a control over the choice of by far the ma- jority of the members of the general and state legislatures, have not well consulted their individual interests. That agricultural produce IS too abundant in the united states, for the markets at home and abroad, is a fact which cannot be disputed for a moment. And it is as clear as the noon day sun, that this must arise from a supernumerary proportion of agri- culturists to the other classes. It irresistibly follows that every measure, public or private, which tends to decrease the numbers of the other classes, and to increase that of the farmers, has an injurious bearing on the latter. I will assume in round numbers, that each farmer raises pro- duce to the amount of one hundred and sixty dollars per annum — that he consumes about eighty dollars — and that the remain- ing eighty serve to purchase clothing and other articles, and to pay that profit to which human industry is entitled, and which it cannot fail to receive in a well-ordered state of society. Now it follows that every manufacturer, who becomes a farmer, not only withdraws eighty dollars from the market for agricultural productions, but adds eighty to the quantity for sale. So that the effect is doubly injurious — it diminishes the demand — in- creases the supply — and, operating like a two-edged sword, cuts both ways. It is obviously difficult to calculate the quantity raised — the quantity consumed — and the surplus — of farms in general. Pre- cision is, however, neither attainable, nor in this case very ne- cessary. Let any quantity be assumed, whether greater or less than I have stated, the result cannot fail to evince the pernicious consequences of forcing manufacturers to become farmers. Let the latter class bear strongly in mind, that the operation con- stantly converts customers i?ito rivals. To this important truth they do not appear to have paid any attention whatever. Ruin- ous are the results to themselves at present, and such they must continue without a total change of system. That the effect of the policy pursued by this country, from the commencement of its government to the present time, has been to convert great numbers of the customers of our farmers into rivals, will, I trust, clearly appear in the course of this chapter. When our manufacturers were suffering penury and distress for want of employment, and their wives and children were sup- ported by overseers of the poor and by soup houses — when the establishments of their employers were crumbling iitto ruins, and their respectful and reiterated petitions for relief were v/hoily, not to say contumeliously, unnoticed or rejected, they were constantly consoled with the advice to " £:o bctck^^ and cul- OF THE UNITED STATES. 441 tivate the soil. This had become a bye-word, and gone into general use. Necessity compelled thousands of the sufferers from time to time to comply. It is impossible to ascertain wirii precision the extent to which this operation was carried ; but certainly it was immense. Those who consider the stream of population that has constantly flowed to the western country, for thirty years, will probably agi-ee, that I am yery moderate when I assume, that in the western states, and the interior of New York and Pennsylyania, there are probably 150,000 per- sons, manufacturers and descendants of manufacturers, who are now cultivating the soil, but who, under a proper s\-stem, would be engaged in manufactures. Thej^ quitted the anvil, the saw, the mallet, the shuttle, and the spindle, to which they had been accustomed, for the plough and the harrow, wholly new occupa- tions — many of them with great reluctance. By increasing the surplus, they lower the price, of the productions of the earth, for which there is no adequate market, and thus add to the dis- tress of the farmer, and of the country at large — which must suffer with the sufferings, and prosper with the prosperity, of any considerable class, but more particidarly with the sufferings and prosperity of its most numerous class of citizens. Were it necessar}- to add any facts or arguments to prove that this number is not extravagant, it would be sufficient to state, that investigations made by comniittees appointed for that par- ticular purpose, proved that the number of persons who were thrown out of employment by the depression of manufactures, from 1816 to 1819, was — In Pittsburg - 1,288 Philadelphia, in thirty branches ------- 7,288 ; 8,576 A large portion of whom, as there was in those places a re- dundancy in nearly all the other branches, must of necessity have " gone back''' to the western country. The decay of business, and dismissal of workmen, in other places has been very great; in some more, in others less, than the above proportions. In Rhode Island the number of persons employed in the cotton branch alone was diminished 11,337 from 1816 to 1819. In the chapter on immigration, I shall state such facts, as, taken in conjunction with the above, will prove that instead of 150,000 manufacturers and descendants of manufacturers, now engaged in agriculture, I might have assumed 250,000'.' •''^•^i grain imported into England from Sept. 26, 1799, to Sept. 27, 18U0. 1,261,932 quarters of wheat and flour, equal to 10,095,456 bush- els of - wheat 67,988 bushels - - . - barley 479.320 do. . - - . oats 300,693 cwt. .... ricef The manufacture of starch and distillation of spirits from grain were moreover prohibited.:]: This is a strong case, and would of itself be sufficient to es- tablish by analogy how ver}' powerful is the effect of superabun- dance in reducing price, which is exactly equal to the operation of scarcity in its enhancement. But a much stronger domestic case presents itself, which de- serves serious attention. It speaks volumes on this subject. The price of superfine flour in our seaport towns was about four dollars per barrel at the commencement of the French revo- lution. It rose during the progress of that memorable era in the history of the world, to 6, 8, 10, 12, and even 14 dollars per barrel, in consequence of the demand for Europe and the West Indies. The average was probablv eight. It might naturally be concluded, that one-half, or at least one- third of our crops of wheal, was exported. It will therefore appear astonishing that the quantity was not one-fifth part of what was consumed at home, as will appear by the following * Idem, pp. 49 and 61, f Dodslej 's Annual Re^ster, vol. 42, pag-e 104. t Idem, p. 127. 446 ADDRESS TO THE FARMERS Table of the exports of wheat and four from the United States' from 1791 to 1820 * Bushels of Barrels of Bushels of Ban-els of wheat. flour. wheat flour. 1791 1,^^18,339 619,681 5,611,275 12,190,931 1792 853,790 824,464 1806 86,784 782,724 1793 1,450,575 1,074,639 1807 766,814 1,249,819 1794 696,797 846,010 1808 87,330 263,813 1795 141,273 687,369 1809 393,889 846,247 1796 31,226 725,194 1810 325,924 798,431 1797 15,655 515,633 1811 216,833 I,4:t5,ul2 1798 15,021 567,558 1812 53,832 1,443,492 1799 10,056 519,265 1813 288,535 1,260,943 1800 26,853 653,052 1814 193,274 18J1 239,929 1,102,444 1815 17,634 862,739 1802 280,281 1,156,248 1816 62,321 729,053 1803 686,415 1,311,853 1817 96,407 1,479,198 1804 127,024 810,008 1818 196,808 1,157,697 1805 18,041 777,513 1819 82,065 750,660 1820 22,137 1,177,036 5,611,275 12,190,931 8,308,588 26,631,069 Export of flour barrels 26,631,065 wheat 8,308,588 bushels, equal to barrels of flour - - - - - 1,661,717 Total for thirty years 28,292,786 Average ~ 9,430,92 In order to ascertain the consumption, it remains to calculate the average population of that period. Population in 1790 3,929 326 1800 5,319,762 1810 -- 7,239,903 1820 9,62.5,734 Total - - - 26,114,725 Being for the whole period an average of about 6,550,000. I will assume, that about 3,000,000 of these persons consumed wheaten flour of v^arious kinds ; and that their consumpticm was about one barrel and three quarters per annum, which is the average admitted by some of the best English statistical v.'riters. This will give an annual consumption of 5,250,0')0 of barrels of flour. It is hence manifest, that the annual export of 940,000 * Pitkin's Tables, p. 111. OF THE UNITED STATES. 447 barrels raised the price of above 5,250,000 from four dollars to an average of eight. Supposing that about 2,000,000 of the free citizens of the united states were not farmers ; and consumed, as above, one barrel and three quarters each, per annum, equal in the whole to 3,500,000 barrels ; it will appear that by this rise they paid their farming fellow citizens 14,000 000 of dollars per annum extra for their flour, in consequence of the war in Europe. This, from the year 1791 to 18l5, a period of twenty-fix e years, would amount to 350,000,000 dollars on that single article — and all other articles rose in nearly die same proportion. I have just received a Pittsburg price current, which, with " a pencil of light" displays the ruinous effects of our system on the farmers. They hailed the arrival of the day when manufactured articles would be cheap, as a Millennium, The day has arnved. Manufactures are as low as they could desire. What is the consequence .'' Their best customers are bankrupted. And their own situation is incomparably worse than ever it was. Cheap as manufactures are, it requires far more labour to buy them than was necessary when they were dear. Flour ----- per barrel J Whiskey - - - - per gallon Wheat . - . . per bushel Oats do. Corn ----- do. Apples - . - - do. Beef per pound When superfine broad cloth during the war was fourteen dol- lars per yard, they could buy a yard for two barrels of flour. The same kind of cloth, imported, can now be had for ten dol- lars — but requires at Pittsburg nt-arly six barrels of flour to pay for it. If this monstrous and lamentable fact, does not awaken the farmers out of their lethargy — display their vital interests in their true colours — and lead them to use their efforts to effect a change of system, it will deserve to be ranked among the most inexplicable instances of impolicy to be found on human records. Pittsburg, Feb. 5, 1821. 75 Pork - . . - per pound cts. 3 16 Veal . - - do. 3 ^^7}, Venison . . . do. 3 15 Butter - . . - do. 12J 25 Lard - - - do. 6 25 Bacon - . - - do. 6 These facts and suggestions are on a topic of immense im- portance, not merely to the farmers, but to the entire nation. They are most respectfully submitted to public consideration, with a firm belief that they are radically correct — or at least that any errors — quos incuria fudit — will not materially affect the result. 448 ADDRESS TO THE FARMERS CHAPTER VI. Advantages of the immigration of the productive classes of Society. Policy of France and England. Ruinous of the former — pro- foundly wise of the latter. Case of Flanders. Immigration into the united states . The second pernicious effect of our present system of policy on the nation at large, but more particularly on the farmers, is, that its obvious tendency has been to discourage immigration of useful members of society belonging to the manufacturing class, who would afford a market for the surplus of the produce of the soil. It would be superfluous to undertake to prove the advanta- ges of an increase of any of the productive classes of society. It is admitted by all wise statesmen, that the strength of the state, and the pride of its rulers, is a numerous and useful pop- ulation, steadily employed in adding to the wealth and resour- ces of the country. A numerous population, partly unemployed, or engaged in labour which does not recompense the capital, time, and industry bestowed on it, as has been the case with so large a portion of our citizens, proves a radical unsoundness in its policy. Immigrations of the productive classes have been encouraged in countries with population tenfold greater than ours, in pro- portion to their extent, and have been found eminently beneficial. History is replete with monitory examples on this important point. Flanders for centuries possessed a monopoly of the woollen trade, and derived immense wealth by drawing the raw material from England, and supplying her and other nations with the manufactured article at treble, quadruple, and quintuple the price of the avooI. A small number of immigrants, encouraged by Edward III. introduced improvements, and extended the manufacture in England, and laid the foundation of the future greatness of that nation, which was thereby liberated from the tribute she had been accustomed to pay to the talents and skill of the native country of those immigrants. France had for j^ears a monopoly of some of the most valua- ble manufactures in the world, which the emigrants whom the repeal of the edict of Nantz drove out of the kingdom, spread throughout Europe. England, by this wicked and impolitic measure, accjuired such accessions of talent, skill, and capital, as greatly facilitated her progress to the high standing she has en- joyed among the nations of the earth. / OF THE UNITED STATES. 449 Those who fled to Saxony increased and improved the manu- factures of the country, and communicated the art of making that elegant tint, called Saxon blue, which has been a great source of wealth and prosperity to that nation.* There is not. perhaps there scarcely ever was, a country in the world to which the immigration of productive labourers ought to be moi-e an object of desire than the united states. Our population bears a smaller proportion to our territory, than that of any other nation. There is no nation, moreover, to which those ardent and ac- tive sj)irits, who, suffering hardships and penury at home, seek to mend their fortunes in foreign climes, look with more eager- ness than the united states. The eyes of Europe are directed hither. The distresses, oppression, and miserxs which the labouring classes in Europe have suffered, and still suffer, would have doubled the immigrations, had proper encouragement been af- forded. Many of the maiuifacturing portion of those who arrived,- in general found it difficult to locale themselves in our cities, where every place was filled. Some of them "^ xvent back'''' to the western states, and devoted themselves to the culture of the soil-mothers found employment at their proper trades in coun- try towns — but no small portion of them returned to their na- tive countries. The policy pursued by our government from its commence- ment, was calculated to crush all attempts at the great manufac- tures of clothing, on which so large a portion of the national wealth has been expended, to support the manufacturers and governments of Europe. I do not aver this was the intention : but it was a necessary effect of the system. For some years after the adoption of the federal constitution, the, duty on cotton and woollen goods was only five per cent, ad valorem — it then rose, in consequence of the increased wants of the treasury, to seven and a Irnlf — and some years afterwards to twelve and a half. It would be an insult to the common sense of the reader to suppose that any competition could be maintained, under such duties, by our citizens with die manufactui-ers of England, * "Those who fled to Saxony were received with that humanitj' which dis- tress is entitled to, and witli a liberahty of welcome which might be expected from an enliglitened and patriotic sovereign. Thej contributed to ])ei'fcct the manufactures of the coimtiy, and laid the foundation of thtvt fame which it has since attained on account of the pei-f ction of its colouring They were the first who introduced aniong the work people that particular tint which is denomina- ted the Saxon blue. In er>eri/ /)(ace ivhert; the fugitives fixed their subseguent abode, iJieti coutnbnted^ by their exertion, their skill, connections, and capital, to the success of the native mamifactwes, and enabled them ivith more decided superiority to rival those of France." — Luccock on tVool,puge60. 57 450 ADDRESS TO THE FARMERS possessed of immense capitals — labour-saving 'machinery — go- vernmental protection in the domestic market — and, in a word, of every advantage which the most enlightened policy could af- ford. The contest would have been wholly hopeless. It would have been the attack of a sloop of war'on a vessel of the line — a dwarf on a Hercules. The consequence was such as might have been expected. In the year 1800 there, were used in manufacturing establish- ments in the united states only 500 bales of cotton, or - lbs. 150,000* In the same year we exported - - lbs. I7,789,263f And, wonderful fact ! we imported, of goods paying 12i per cent, ad valorem, - - $ 16,637, 257^ of which three-fourths were for clothing, or about g 12,000,000 In 1 805, we consumed in manufacturing estab- lishments 1000 bales - - - - lbs. 300,000§ In the same year we exported - - lbs. 29,602,428[j And imported goods at 15 per cent. ad valorem to the amount of - - g 37,137,596e Committee on Commerce and Manufactures. !! Seybeit 112. f Idem 164. OF THE UNITED STATES. 451 of a variety of other trades and professions ; that vast numbers were probably prevented from migrating to this country ; and that those who arrived here, and did not return, were obiigcd to betake themselves to other occupations — among which there can be no doubt thousands devoted themselves to agriculture. From the preceding statement it is manifest that our policy has discouraged the immigration of manufacturers — has in some measure compelled immigrants of that description to become farmers, and of consequence rivals to those to whom they would otherwise have been customers — and that so far as it has opera- ted in this re^spect, it has been among the sources of the present distress of the respectable class of agriculturists. The demand for our agricultural productions in Europe and the West Indies, during the continuance of the wars of the French revolution, prevented the development of the ruinous consequences of this policy. They are now visited on us with unmitigated severity. It remains to ascertain the extent of immigration, notwith- standing all these untoward and inauspicious circumstances. The want of data prevents me from going farther back than 1817. I shall therefore confine myself to that and the three suc- ceeding years. According to Dr. Seybert, the immigrations in the year 1817, into ten ports were 22,240.* Boston - - - 2,200 Baltimore - - 1,817 New York - - 7,634 Norfolk - - - 520 Perth Amboy - - 637 Charleston - - 747 Philadelphia - - 7,085 Savannah - - - 163 Wilmington, D. - 558 New Orleans - - 879 22,240 The immigrants registered in the port of New York, in the years 1818 and 1819, according to a statement of the mayor of that city were 19,885. The mayor states that there is one-third of the whole num- ber omitted — this would make the total 28,827. It is probable that about two-fifths of all the immigrants into this country arrive in New- York. This would make, in 1818 and 1819, for all the united states, ..---. 70,000 Or, per annum, . - - . 35,000 * Statistics, p. 29. 4j;i ADDRESS TO THE FARMERS But I shall assume that the numbers in the rest of the union are only equal to those who arrived in New York, which, notwithstanding the variety of discouraging cir- cumstances that existed, makes, per annum, about - 28,000 It is difficult to conceive the extent to which immigration would have been carried, had those who arrived, been able to locate themselves comfortably, and to write home such flatter- ing accounts as in that case they would have done, to those who were pantiag to follow them. It is not impronable that it would have amou'. ted to 50 or 60,000 per annum, who would have added immensely to the wealth, power, and resources of the country. The secretary of the treasury, in a report on the subject of the tariff in 1820, presents a sound and luminous observation on the subject of manufactures generally, and on the eifect which would be produced by an adequate protection. — He says, "•' The situation of the countries from vi'hich our foreign ma- *' nufactures have been principally drawn, authorises the expec- *' tation, that in the event of a monopolj'^ of the market being *^' secured to our manufacturing fellow citizens, a considerable *^ portion of the manufacturing skill and industry of those coun- *' tries -will he promptly transferred to the united states ^ and incor- ^^ porated zvith the domestic capital of the union.'''' Here, in a few words, is developed an outline of the true po- licy of the united states, to which, unfortunately, scarcely any attention has been paid. A monopoly, by which he meant an absolute prohibition, was not necessary : such a degree of pro- tection as would have prevented our citizens from being driven out of their own markets, would have been amply sufficient. But we prefer having our workmen in Europe — raising food and raw materials — and shipping them there to feed and keep them employed. The number of persons thus usually labour- ing for us in Europe, would, if removed to this country, afford a market for nearly the whole surplus of food we export. And thus, to use, the words of the secretary, it was in our power by proper encouragement, to have '•'•promptly transferred to the united states a considerable portion of the skill and industry'''^ of a great part of the nations of Europe. The distresses and wretchedness suffered by the immigrants, in 1819, were truly lamentable. They wandered about our streets, as I have stated, after having exhausted their resources in search of employment, but in vain. Persons who had been brought up to nice and elegant branches of business, were by necessity compelled to saw and split wood, and perform other laborious and painful offices for a livelihood. Great numbers of those who had the means of returning, availed themselves of the op- portunity, and gave as tremendous accounts of the country as Ot THE UNITED STATES. 453 Joshua's messengers gave of Canaan Numerous applications were made to the British consuls here and elsewhere, by some of the sufferers, who could not find work, and who had no means of returning, to procure them passages home — which in some instances were accorded — in others refused The number of persons who ha\ e thus returned, has been far more considerable than is supposed. I make no doubt that they amounted to 1,'00 per annum for the last three years. Sixty have recently sailed in one vessel from New York, according to a statement from the British consul thei-e — and twenty, thirty, forty, and fift}^ have from time to time sailed in different vessels from that port and from Pliiladelphia. Some of them have tried their fortunes in a settlement on the island of Cuba : and some have gone to Canada and the other British settlements on this continent. It is fair to presume that the terror inspired by every return- ed emigrant, prevented the emigration of numbers of those who had previously yearned after this country. In consequence, immigration, in 1820, sunk down to 7001, according to a semi-official statement in the National Calender, for 1821, in which a novel classification is adopted — Useful and productive class ; useful unproductive ; ornamental and amusing unproductive. Useful and productive class _ - - _ 1,987 Useful unproductive class - . - _ - 1,730 Ornamental and amusing unproductive class - 148 Persons whose occupations are unknown - - 3,136 7,001 Of the first class there were, farmers, - - - planters, gardeners, 897 The remaining 1090 of the first class comprise persons of the following trades. 454 ADDRESS TO tHE FARMERS Artificer 1 Dyers - 3 Rigger 1 Bakers 58 Fishermen - 4 Rope makers • - 5 Basket makers 5 Flaxdresser - 1 Rule makers - 2 BJacksmitlis - 55 Goldsmith - 1 Saddlers 4 Block makers - . 7 Gunsmiths - 3 Sail makers - 2 Boat builders 4 Harness makers 3 Seamstresses - - 10 Book binder - 1 l^atters - - 5 Ship carpenters 5 Boot makers 3 Iron founder 1 Shoemakers - - 82 Bricklayers - 6 Labourers - 289 Silversmiths 2 Brickmaker - 1 Leather dresser ■ 1 Slater - 1 Bikzier - - . 1 ManUia makers - - 5 Soap boilers - - 2 Brass founders - - 2 Manufacturers 7 Stay makers - - 2 Brewers - - 6 Masons 12 Stone cutters 8 Butchers 37 Mattrass maker 1 Sup. of glass works - 1 Button maker 1 Mechanics - 31 Tailors - . 55 Ca-binet makers 22 Milliners 17 Tailor and fai-mer - 1 •Carpenters - 114 Millers 9 Tanners 5 Chair makers - . 4 Millwrig-hts - 2 Tanner and currier - 1 Chandlers 6 Morocco dresser 1 Tinker - 1 Gloth dressers 3 Nail maker - 1 Tobacconists 6 Clothiers 9 Painters 13 Tui'ner - 1 Cloth manufacturer - 1 Paper makers 2 Umbrella makers . 2 Coopers 33 Pin and needle makers 2 ' Watch makers 6 Coppersmiths - - 4 Plasterei-s - 7 Weavers 61 Cotton spinner 1 Plumbers - 3 Wheelwrights - . 4 CuiTiers 10 Potters 2 White smiths 4 Cutlers - 5 Printers - . 4 Waxmakers . 2 Distillers 5 Refiner ' . 1 Brought down Total 1090 897 1987 Here a most serious reflection strllces the mind. A nation with a thousand millions of acres uncultivated, and not likely to be fully cultivated for centuries to come — with almost every ad- vantage that heaven ever bestowed on any portion of the globe — a nation, which, under a sound policy, could provide for half the population of Europe — and which, more than any nation in the world, would be benefitted by immigration^ — receives an ac- cession of 1987 persons of the most useful classes of society — farmers planters — gardeners manufacturers — mechanics — artisans — and labourers — of whom a considerable portion have families — and this accession, strange as it may appear, is of very doubtful advantage either to the country or themselves !* In the present state of things, can the accession of 806 far- mers be beneficial ? Is not the class of farmers already too nu- merous, and the produce of agriculture too abundant, and so cheap as not to pay for the labour, time, talent, and capital it requires? Does not every farmer who arrives from abroad in- crease the surplus, and is not the tendency, of course, to lower the prices, already ruinously depressed ? On the other hand, can the arrival of blacksmiths, masons, carpenters, coopers, * Written in Feb. 1821. FARMERS OF THE UNITED STATES. 455 weavers, &c. &c. be advantageous, — as there are so many of them here destitute of employment ? Does not every one who arrives, if employed, displace some one of our actual citizens ? In the absence of every other proof of the unsoundness of our policy, this would be abundantly sufficient to establish it beyond the power of contradiction. CHAPTER VII. Market for raw materials destroyed. Quantity of wool in 1 820. Increase. State of the sheep and the xuooUen manufacture in Englaiid and France. During the war, the prosperous state of manufactures afford- ed the farmers an ad\ antageous market for raw materials, as wool, iron, hemp, flax, leather, &c. &c. the want of which that class of citizens feel most oppressively by the depression and downfall of so many large establishments. This circumstance has powerfully co-operated in producing the present stagnation and distress, which they feel so severely. Were this market revived, it would spread prosperity where gloom and dismay prevail. In this investigation I shall not consider anv of the raw ma- terials, except wool. The calculations are more simple, and re- ducible to a more tangible form. But all the reasoning which applies to wool, so far as regards the farming interest, will ap- ply with equal force to hemp, flax, skins, hides, timber, &c. It is to be regretted that the statistics of the united states are in a very imperfect state, and do not aff"ord such materials for calculation as would be requisite to arrive at that degree of certaintv which the importance of the subject requires. We must avail ourselves of the best which the nature of the case af- fords. Of the quantity of our sheep — the amount of their flocks — the value of the wool — and the extent of the woollen manufacture, there is scarcely a trace to be found, previous to the publication of Mr. Coxe's Tables, drawn from the returns of the marshals, in 1810, when the restrictive system had given a considerable spring to manufactures generally. Mr. Coxe states, that it was believed that the growth of wool in the united states, in 1812, was from 20, to 22,()0i;>,000 Ibs.^ — but that there were some who made a higher estimate. * Statement of the aits and manufactures of the united states, for the yeai- 1810, page 13. 456 ADDRESS TO THE FARMERS The quantity had increased, in two years, several millions oi pounds. It would be waste of time to prove, that such a protection as is afforded to the woollen manufacture in England and France, would have created so great a demand for wool, as would have inclined and justified the farmers in increasing the num- bers of their sheep, which would have diminished the number of acres employed in raising grain, and thus lessened that sur- plus of the latter, which has produced the great reduction of the price of bread stuffs. It will not be controverted that in the eight years which have elapsed since 1812, the increase would probably have been 50 per cent. — which would give 30, to 32,000,0()0/(^5''. The briskness of demand would have secured a good price. I do not calculate on the very extravagant prices which pre- vailed during the war, two, three, and four dollars per pound for washed merino wool. I will suppose that the price of com- mon wool, now fifty cents per lb. would be steady at seventy- five cents. It is difficult to ascertain what is the quantity sheared at present. Whether it has increased, decreased, or remained stationary since 1812, we have no means of ascertaining. The lamentable havoc made of the merino sheep would lead to the belief that there was rather a decrease. But I will admit that it has remained stationary. At all events, if it has increased^ it does not affect the calculation ; as whatever may be the number, at present, adequte protection of the woollen manufac- ture would, as already stated, have increased it probably 50 per cent. . Suppose it now 22,000,000 lbs. at half a dollar, it amounts to gl 1,000^000 But assuming an increase of quantity, not of 50 per cent, but of 30, it would amount to lbs. 28,600,000 And assuming, that a proper encouragement of ;, manufactures would have raised the price to 75 -^ cents, 28,6'^0,000 lbs. would amount to - ^21,450,00()■^v , Here (beyond the power of contradiction) would be a differ- ence in one single article in favour of the farming, interest of % 10,000,000. Had I assumed a twofold increase, of quantity , and price, as I believe I might have done, it would have made^ij a difference of above ^30,000,000. But it is preferable to b^oJ-, within such boundary lines as even an opponent must admit. The gain to the farmers by an increased consumption of herap, flax, leather, &c. would probably equal that on wopli; Details are unnecessary-^as a very slight consideration is suf- OF THE UNITED STATES. 457 ficient to evince the great importance of these almost inex- hai;stihle sources of wealth. A slight sketch of the state of the sheep, the wool, and wool- len manufacture in England and France may throw some light on this subject, and shr w what immense advantages they derive, and which we might derive from a due encouragement of this branch of industry. The shet'p and lambs in Great Britain and Ireland, are, according to Colquhoun - 40,000,000 The woollen manufacture in England from English wool - - ^20,000,000 Spanish wool - - - 6,000,000 =g 26,000,000 Cost of the raw material . . - - 8,000,000 National gain £ 18,000,()00* Equal to - - - - - - 8 81,000,000 The average amount of Spanish wool imported into England for six years, from 1807 to 1812 lbs. 7,329.795t The annual weight of the wool shorn in France is - - - killogrammes 37,188,910 Of which the value is ... Fr. 81,339,317 The whole trade in wool, and fabrics of wool, in France, is . - . - Fr. 238,133,932^ Equal to about - - - - g 47,000,000 I shall close this subject with a brief sketch of the state of the sheep and the wool in a single county in England. Lincolnshire contains 75,000 souls — i ,848,000 acres of land — 2,400,000 sheep — and of wool, according to Arthur Young, in 1799, it produced 21,600,000 lbs.|| The sheep, however, it is to be observed, are the long fleeced^ which yield nearly twice as much wool as the other species. This wool is adapted to coarse goods, as blankets, kerseys, &c. l>uccock, who has written much more recently than Young, viz. in 1809, gives a different account of the state of Lincoln- shire, as regards the number of sheep. His statement is as follows — * Wealth, Power and Resources of Great Britain, p. 91. f Ibid. i Chapta!, De L'lndustrie Frsiicoisc, vol li. pp. 132. 135. R General view oi the Agriculture of the County of Lincoln, p. 367. .58 458 ADDRESS TO THE FARMERS Sheep. Weight of fleece. Lincoln rich land .... 1,241,625 8 lbs. Marshes 87,500 9 Miscellaneous land .... 505,657 8 1,834,782 As there are but 87,500 sheep, whose fleeces exceed eight pounds — that weight may be said to be the average of the county. The average of that species throughout England, appears by the same author, about 7i lbs. An important fact has recently occurred, which greatly eluci- •l^tes this subject — The Oriskanv Manufacturing Company have purchased for six thousand dollars, 9; 00 lbs. of wool, shorn from the flock of Mr. Isaac Smith. This immense amount of a single purchase, abundantly proves the transcendently ruinous effects on the agricultural interest of the destruction of so many manufacturing establishments as have fallen sacrifices to the pernicious policy of the tariff of 1816. CHxiPTER VIII. The last injurious effect of the prevailing system is, that it de prives the zuives and children of the farmers and country labourers of profitable employment in manufacturing establish- 7nents. i^MovG the host of objections which have been arrayed against the encouragement of manufoctures, the folly and the evil consequences of withdrawing labourers from the culture of the soil, employment so much more useful, innocent and profit- able, held a conspicuous place, and aflx>rded ample scope for de- clamation. It did not avail, as I have already stated, that few or none of the male sex were wanted for those manufactures whii:h required protection. T'.:e rise of manufacturing establishments throughout the united states, elevated thousands of the young people of both sexes, but principally the females, belonging to the families of the cultivators of the soil in their vicinity, from a state of pen- m"y and idleness to competence and industry. Their fall has precipitated large numbers of them to their former state. or THE UNITED STATES. 459 On this subject, I shall advance but few facts — but I trust they will be found decisive. At Waltham factory, near Boston, on which the opposers of the protection of manufactures place so much reliance, there are, as we have sten, but 14 men to 286 women and children. These last are chiefly the daughters of the neighbouring farm- ers. There is another extensive factory, situated at Fishkill, on the North Ri\'er, where there are from 70 to 80 persons em- ployed, of whom five-sixths are girls and young women, some of whom, before the establishment of the factory, Avere, with their parents, in a state of poverty and idleness, bare-footed, and living in wretched hovels. But since that peric>d, they are comfortably fed and clothed — their habits and manners and dwellings greatly improved — and they ha\ e become: useful mem- bers of society. Their wages vary according to their skill and industry, from one dollar and a quarter per week to three dclJars. Similar cases, to a very great extent, are to be found, through- out the united states, in every place where manufactories are established. , Mr. Gallatin, in conformity with a call from congress, in the year 1810, made an interesting report on the state of the manu- factures of the united states, which contains a great body of most useful information. One important fact, bearing upon the present subject, is deserving of the most serious attention of the farmers. There was then a factory in Rhode Island, which, as he states, empoyed — In the factory. In neighbouring families. Males, 24 Males, - - 50 Females, 29 Females, - 75 — 53 — 125 Judging from the state of other establishments, it is fair to presume that more than one-half of the whole number were probably young females, who, but for this factory, would have been without employment, and spending their time perniciously — a burden to their parents and society — trained up to vicious courses — but thus happily preserved from idleness and its attendant vices and crimes — and whose wages probably aver- aged one dollar and a half per week, or 7000 dollars per annum, distributed among fifty or sixt}' of the adjacent farmers. Those employed " in the neighbouring families," were persons princi- pally devoted to farming, who by these means were enabled to '■'■gather up the fragments o/'fzw^," which would otherwise be wholly " loatP 460 ADDlRESS TO THE FARMERS At the date of the recent census, there were of free white females, between 10 and 16 years of age, 604,912 Of 16, and under 26 - - - - - 780,865 1,385,477 Supposing the agricultural class to embrace five- eighths of t!>e whole population, then of the above number there are, belonging to that class - 865,920 The services of females of the specified ages, employed in agriculture — for, which, moreover, above one-half of them are too young or too delicate — are very unproductive. At manu- factures they are far more valuable, and command higher wages, as I have already stated, from one dollar and a quarter to three dollars per week. It will not be unfair to assume, that, under a pro- per order of things, manufactures of various kinds would find employment for - - - 200,000 of them, embracing the chief part of those who are 10, 11, 12, and 13 years of age, whose labour would otherwise be of little value. As objections may be made to the number of 200,000, exclu- sive of those now employed in agriculture and manufactures, I state the data on which it is predicated. The committee of commerce and manufactures, in their re- port of the year 1816, state, that, of the persons employed in the cotton manufacture, the preceding year, viz. 100,0u0 There were males below 17 years of age 24,000 Of 17 and above . . _ _ 10,000 Women and female children - - 66,000 _ 100,000 About the same number of persons were employed in the woollen manufacture — but the proportions of the sexes are not stated. They were probably about the same as in the cotton branch. It is to be presumed, as about 120, or 130,000 females were employed in two branches, which were then only in their infancy, particularly the woollen — that the number I have assumed is very far too low. Now, supposing the wages to average but two dollars per week, which, in a flourishing state of manufactures, would be moderate, it would amount, for the 200,000, to the enormous sum per annum of ^20,800,000 Supposing the raw materials to be fifty per cent, more than the wages, the manufactured articles would amount to aboutper annum - jg50,000,000 absolutely saved to the nation. OF THE UNITED STATES. 461 A large portion of the wages would go to enrich the farmers, ai tl extricate them from their present distress. But to avoid all cavil, I shall assume the number of females thus employed to be only 120,000, and the wages to average only one dollar and a half, which wouM amount to, per annum ^9,360,000 A. d supposing the raw material onlv equal to the wages, the manufacture would amount to Sl8,7'20,000 These facts and arguments require no comment. Tliey speak to the farming interest in language not to be misunder- sto jd — evince the ruinous consequences ot the prevailing system — and point out the imperious necessity of a speedy and effect- ual change. CHAPTEIl TX. Conclvsion. Recapitulation of the disadvantages of the present system. Extent of the advance proposed by the new tariff". Imports., and duties ad valorem., for the year 1820. We have seen that the prevailing system produces the most serious injury to the farming interest, in four different points : 1. It increases the number of the producers, and the surplus, of bread stuffs, and of course reduces the price. 2. It discourages the immigration of thousands of persons, who would be customers to the farmers. 3. It in many cases impairs — and m a variety wholly destroys the market for raw materials. ' 4. It deprives the yomig, particularly the female branches of the families of the farmers, of useful emplo) ment, whereby, in-* stead of aiding in the general support, they are rendered rather burdensome. To compensate for this catalogue of evils, there ought to be some mighty and obvious advantages, which would not only counterbalance, but outweigh them. This requires to be ascer^- tained. The investigation is of great importance. The grand object is to procure goods from foreign countries, cheaper than the same kinds can be procured at home. I suppress the crowd of reflections which arise in the mind, at the idea of consigning our workmen to pauperism — their em- ployers to bankruptcy — magnificent establishments to decay and ruin, once the scenes of joy and gladness — of industrj^' and 462 AD1>RESS TO THE FARMERS happiness-r-of increase to the wealth and resources of the nation — for any possible gain, even if the amount were twenty fold what is supposed These reflections would lead to uncomforta- ble feelings, and might excite ill will. I suppress likewise all considerations of the transcendent im- policy of exhausting the country of its specie — paralizing every species of industry — and supporting foreign manufacturers, while our own are suffering. — -I shall confine myself to ascertain the amount of the gain, real or supposed ; that is, what advan- tage is derived from an adherence to the old, and rejection of the proposed tariff. The whole amount of the inpportations of 1820, which paid duties ad valorem, was - - ^39,8 85,46 / This embraced a great variety of manufactured articles not at all affecting the national industry — and of course not requiring any alteration in the duty, as well as articles not belonging to the class of manufactures. But I will for the sake of argument admit that the whole belonged to that class. The white population of the united states is presum- ed to be nearly ..... 8,000,000 Of course the ad valorem importations do not average five dol- lars per head. Were the duties doubled, and even were there no diminution of imports, the burden would not be felt, provided the country was in a prosperous situation. But there was no idea of doubling the duties. It remains to ascertain what was actually contemplated, and what would have been the effect of the proposed alteration of the tariff. The amount of the ad valorem duties, which em- brace very nearly the whole of the manufactured articles; tibout which alone there is question, was, for the last year, ^8,076,161 , The average of the duties was about 22 per cent. Merchandise paying duties ad valorem^ imported into the united states, A. Z). 1820. 1,679,284 dollars, at riper cent, g 125,946 28 13,971,393 do. 15 do. - 2,095,738 95 5,979,736 do. 20 do. - 1,195,947 23 16,355,698 do. 25 do. - 4,088,924 43 11,215 do. 27i do. - - 3,084 12 1,882,399 do. 30 do. - - 564,719 79 5,542 do. 32i do. - - 1,801 05 ^8,076,161.85* ^39,885,467 * Keport of the Secretary of the Treasury. OF THE UNITED STATES 463 It was proposed to raise to 33 1 those which now pay 25, which constitute nearly one-half of the whole, and embrace all the articles ( *' cotton and woollen goods, except a very few ot the former, invoiced below 25 cents per yard. The rate pro- posed is one-third advance on the existing tariff. Those articles on which the advance is greater, are unimportant. I will, however, suppose, that the advance on the whole would be 37^ per cent. ; the addition, then, supposing — which is not likely — the same amount of goods imported, would be - - - - S 3,028,560 This is the whole amount of the additional duties proposed to be laid by the new tariff, so far as manufacturers or manu- factures are concerned, which have excited so much opposition fro 11 one end of the country to the other — an opposition which might lead to the opinion, that the plan was fraught with cer- tain ruin, not only to the whole body of the farmers but to the nation. The white population, as I have stated, is about 8,000,000 The addition to the tariff is intended to produce about - S 3,000,000 Or 37^ cents per head, of which the manufacturers them- selves would pay their full proportion. And as they and their families amount to about 1,500,000 souls, they would contribute at least 5, or 600,000 dollars. Should it be asserted that the prices of domestic manufac- tures would be extravagantly enhanced, in consequence of the new tariff, I refer to Chap. IV. where diat objection is fully answered. The assertion that the manufacturers would pay their full proportion may require some explanation. In this there is no difficulty. The manufacturers of woolltns would pay the duty on cottons, linens, silks, iron, &c. — the manufacturers of cotton would pay those on woollens, linens, &c. — and thus of all the other branches. When we are all laid in our graves — and the passions have subsided, which the struggle, whether we .should work for our- selves^ and feed and pay our workmen at home, or have our labour performed in Europe and the East Indies^ and feed and pay the •workmen there ^ has excited — our posterity will mourn for the conduct of their ancestors, that thei-e should be any diversity of sentiment on such a subject — and that so much deadly hostility should prevail against a measure of such obvious utility. THE FARMER'S & planter's FRIEND. NO. I. " The uniform appearance of an abundance of specie, as the concomitant of « a flourisliing' state of manufactures, and of the reverse, where they do not pre- " vail, afford a strong presumption of their favourable operation on the wealth of " a country." — A. Hamilton. " Those who wish to make agriculture flourish in any country, can have no " hope of succeeding- in the attempt but by bringing- commerce and manuiac- « tures to her aid ; which, by taking from tiie farmer, his superfluous produce, " gives spirit to his operations, and life and activity to his mind." — Anderson on J^'ational Indiistry. To the Farmers and Planters of the united states . Fi'iends and Fellozv Citizens., I REQUEST a patient and unbiassed consideration of a few- brief essays, intended to display the baleful effects on your vitail interests, which have flowed and continue to flow from the dis- couragement and depression manufactures have experienced, and from the numerous disadvantages under which manufactur- ers have laboured. I invite a candid discussion of a subject which yields to none in importance — as well as a manly exposure of any errors I may fall mto. No man can be more ready to point them out, than I shall be to acknowledge them. The reasoning I shall employ, shall not be drawn from any consideration of, or regard for, the intei^ests of the manufactur- ers. Arguments of this description have for years been reite- rated in vain, until the subject is entirely exhausted. It would therefore be waste of time to touch on those topics. By argu- ments of a totally difl'erent character, entirely derived from a regard for your own dearest interests, I hope to prove that the embarrassments of our farmers, and the dangers impending over our planters, can be as fairlv traced to the depression of manufactures, as anv effect whatever can be traced to its exciting 59 466 THE farmer's and cause ; that a total change of system may, and that nothing but such a change can, meliorate your situation. In the present number 1 shall confine myself to the case of the farmers alone. I shall in future numbers discuss that of the planters. I venture to assume as undeniable, a few plain propositions, so notoriously true, as, I trust, to preclude the possibility of controversy by any fair or candid reader. I. The present prices of nearly all kinds of the necessaries of life, and of some of the raw materials, produced by the farm- ers of the united states, are so low, in consequence of their great superabundance, as in most cases not to remunerate, and, in the best situations, to afford but a slender reward for the labour, time, and capital employed, more especially at a distance from the seaboard. II. Hence a large proportion of our farmers, particularly in the western and in the interior of the middle states, are in a state of suffering and embarrassment. III. This superabundance, and the consequent suffering of our farmers, must necessarily arise from this class of citizens being too numerous in proportion to the other classes. IV. Hence every operation, public or private, which has in- creased, or may increase, the number of farmers, and conse- quently the surplus produce, withouta proportionate increase and still more with a positive decrease, of the other classes, or with- out opening new markets, of which there is scarcely a prospect, must have tended, and now tends, to aggravate the evil. These postulata being admitted, it only remains to prove, that the system of our government has had a steady, undevia- ting tendency to convert manufacturers into farmers, in order to establish the radical unsoundness of that system, so far as respects the farmers, and its pernicious operation on this numer- ous and respectable class of citizens. This tendency I under-* take to demonstrate by the following facts and inductions. The manufactures that minister to the clothing of mankind, are by far the most important ; afford employment to the greatest number of people ; and are therefore most particularly entitled to the fostering care of every government. It is therefore an ex- traordinary and astonishing fact, that until the commencement of the restrictive system, in 1 807, the manufacture of cottons, linens, and woollens, except in private families, was almost wholly unknown in this country — although we exported on an average 30,000,000 lbs. of cotton annually ; and had the capacity of rais- ing wool and flax to an extent commensurate with our utmost wants. To this hour, manufactories of hosiery, linen, silk, delft, china, and cutlery, with all the other species of fine iron and steel, &c. &c. are nearly strangers in the land. Various other manufac- planter's FRIENB. 467 tures, for which our country is admirably fitted, exist only to a very limited extent, in consequence of our markets being glut- ted with rival articles of foreign production. From the commencement of our government, thousands of persons have arrived in this country, from year to year, who were brought up to the cotton, woollen, linen, silk, hosiery, and other branches, and who, finding no employment in their proper sphere, devoted themselves to agriculture, which, during the wars of the French revolution, was prosperous, and held out strong temptations to allure them to devote themselves to that useful and important branch of industry. So long as the foreign markets afforded a vent for our surplus produce, the operation of this course of things, although it restricted the progress and prosperity of the country, was not injurious to the farmers : but it was not very difficult to anticipate that its pernicious conse- quences would freely and fully develop themselves in a season of peace, when those markets, which were then open to the pro- ducts of our agricultural industry, would be closed. These con- sequences are now deeply and vitally felt by the farmers. To appreciate the extent of the evil, with any thing like ma- thematical precision, is obviously impracticable. Data of this character are wholly unattainable. We must be satisfied to ap- proximate as nearlv as possible to facts. The calculations must, however, be more or less erroneous. But the errors cannot af- fect the position, that the effect of the system is highly pernici- ous to the farmers — and will only, as the case may be, some- what diminish or increase the quantum of the evil, either below or beyond the reality. It is difficult to ascertain the extent of immigration into this country, from the want of statistical tables on the subject. The information we have is imperfect. I must avail myself of what I am able to glean up, which do not extend beyond five years. In 1816, according to various statements in the Week- ly Register, there arrived at least Emigrants 20,000 In 1817, according to Dr. Seybert, there arrived in ten ports, 22,240* In 1818 and 1819. according to the mayor of New York, there arrived in that single port,f 28,000 Supposing that the numbers who arrived in all the other ports in the united states in 1818 and 1819, were only equal to those who landed in New York, it would make the total in these two years, no less than 56,000 or, per annum, ------ 28,000 * Statistics, page 29. f Ueports of Cadwallader D. Golden, late Mayor of New York. 468 THE farmer's and In 1820, according to the National Calendar, the whole that arrived in the united states, were 7,001 Now, from these data, an average of 15,000 annually might be assumed, without any danger of error. But to avoid controversy, I confine myself to 9.000 This would give from 1 789 to 1820, a total of 279,000 In 30 years, by natural increase, they would proba- bly amount to above - - . _ _ 480,000 Thus far I trust the calculation will be admitted to be mod- erate. It now remains to estimate what proportion of this num- ber, originally manufacturers, piobably became farmers, in con- sequence of the w ant of encouragement in their respective occu- pations. This estimate must, it is true, be somewhat vague — but there are important data on which to found a calculation. From the best information I am able to procure, it appears that one half, probably two thirds of the emigrants to this coun- try, are English and Irish. Of the former nation a large por- tion have been cotton and woollen manufacturers : and of the latter, at least three fourths have come from Ulster, where the linen manufacture prevails almost universally, and of course a large proportion belonged to that branch. There are consider- able districts in the state of Pennsylvania which are chiefly, and some almost wholly, inhabited by Ulstermen and their descen- dants. When, moreover, we take into consideration, that, from 1789 to 1807, there were, as I have stated, scarcely any of the great manufacturers of woollen, cotton, linen, hosiery, silk, china, glass, delft, pottery, cutlery, and all the fine branches of iron and steel, carried on here — that some of these even now are un- known — and that the others are generally in a languid state, it will not be regarded as extravagant to suppose, that nearly one fourth part of the above number, or 100,000 persons, being about 17,000 families, emigrants or descendants of immigrants, are at present occupied in agriculture, whose proper sphere would be manufactures. Besides these, there are immense numbers of other citizens, whom the same reasons as have operated on the immigrants, together with the downfal of so many manufacturing establish- ments since 1816, have forced to become farmeris. On this subject, again, I am straitened for data. There are some, however, very important and semi-official, which afford a good basis whereon to predicate a tolerably correct estimate. In the year 1819, the distress of the manufacturers > through- out the middle and eastern states, produced exertions to ascer- tain the extent of the decay of manufactures ; and investigations took place, which throw a flood of light on this subject. It appeared, that in Philadelphia and its injmediate vicinity, planter's friend. 4^9 in thirty branches of business, there were 7,288 persons less employed in 1819 than in 1816, There were twenty six other branches from which no returns could be procured. Estimat- ii g these twenty-six at only one half of the other thirty, the total number would be nearly 11,000. Many of them were i; en with families: and it will not therefore be unfair to add 5,0; )0 for wives and children, making an aggregate of 15,t)0o. Of these no small portion " wefit back'''' to cultivate the soil. The number of persons bereft of employment in Pittsburg appeared, by similar investigations, to be 1,288, whose depend- ents might be about an equal number, forming a total of — 2,576. In Rhode Island similar enquiries tuok place : and it appear- ed that in 1819, there were several thousands thrown out of em- ployment in that state, chiefly in the cotton and woollen branches. The same effects were produced in various other quarters, throughout the middle and eastern states, to a very considerable extent, especialK- in the state of Yew York ; but the details are not sufficiently precise to enable me to enter into particulars. These data, duly considered, afford reason to believe, that at least 15,000 workmen, with families averaging six persons, have, since 1816, when devested of employment at manufactures, '■'■gone back'' to cultivate the soil, which, with the immigrants and descendants of immigrants already stated, would make an aggregate of about 190,000 souls. But I will only suppose 10,000 families, or 60,000 souls, for the second description. This will give an aggregate of 16o,0'j0 souls. I wish it distinctly understood, that I am not tenacious of these numbers. They must, I repeat, be vague, and may be erroneous, either too high or too low, without materially affect- ing my deductions. It is sufficient for the argument, that no man can deny, that the total absence for a long time of so great a number of the most important manufactures in the world — and the frequent stagnation in others, in consequence of the glut of foreign goods in our markets, must necessarily have driven thousands of persons from manufactures to agriculture. This is the theory on the subject — and it is notorious that the fact corresponds with and corroborates the theory. In my next number, I shall investigate in detail the operation of this state of things on the interests of the farmers. In tiie mean time, I recommend to them never for a moment to lose sight of the all-important truth, that everj^ manv:facturer, com- pelled to nave recourse to agriculture, is transformed from a customer into a rival. GUATIMOZIN. Philadelphia^ March 26, 1821. 470 THE farmer's and NO n. '• The restrictive regulations which in foreign markets abridge the vent for the increasing surplus of our agncultural products, serve to beget an earnest desire, that a more extensive demand for that surplus be created at home" — Hamilton. « While the necessities of nations exclusively devoted to agriculture, for the fabrics of manufacturing nations, are constant and regular ; the -wants of the latter for the products of the former, are liable to very considerable fluctuations and inter- ruptions." — Idem. « If Europe will not take from us the products of our soil, on terms consistent with our interest, the natural remedy is to contract as fast as possible our wants of her" — ^Idem. These three mottoes contain a summary of the imperious duty of this nation to herself. If duly considered and acted on, they would be sufficient to decide the important question, agi- tated with so much Zealand ardour — What duties or restrictions the united states should impose on the fabrics of foreign na- tions ? The free people of the united states are at present about 8,000,000. Raising bread-stuflFs constitutes the chief dependence of a part — and the sole dependence of the remainder — of the inhabitants of seven states, containing about 4,340,000 of souls. New- York New jercey Pennsylvania Delaware Ohio Kentucky Tennessee Slaves. Total. 10,888 1,372,812 7,557 277,575 211 1,049,398 4,5* )9 72,749 000 581,434 126,730 564,317 130,107 422,813 280,002 4,341,098 280,002 4,061 096 Deduct for slaves Free population of seven states In those states, it is true, there are numbers of farmers en- gaged in other pursuits, besides raising of bread-stuffs — but there is a sufficient number engaged in the culture of grain in Virginia, Maryland, and other states, not included in the above list to counterbalance those. But strking off the i 061,096, for persons not engaged in this species of agriculture, it will leave 3,00<'!,<^)00 of people being about three-eighths of the white pop- ulation of the nation, whose main dependence, I repeat, for pay- planter's friend. 471 ing for the productions of Europe, rests on raising and selling of bread-stuffs — and yet they are actually excluded either by pro- hibitions, or prohibitory duties, from the sale of this species of produce to fifty-seven millions of the inhabitants of that quarter of the globe. (j^y Great Britain and Ireland - Inhabitants 18,000,000 France . . - - - - 29,000,000 Spain 10,730,000 Portugal 2,65(;,000 60,380,000 These nations comprise about one-third part of the population of Europe. By an ordinance of the Cortes of Spain, ratified by the king, on the 6th of September, 1820, the importation of wheat, bar- ley, rye, Indian corn, millet, oats, and other foreign grain, is prohibited, unless the price of the fanega of wheat, (one bushel and five -eighths) which regulates every other species of grain, exceed four dollars — and a quintal, or one hundred pounds of flour, exceed six dollars. That is, unless wheat is at two dol- lars and a half per bushel, and flour at ten dollars and a half per barrel. This is indubitably equivalent to a prohibition. American and other foreign wheat and flour cannot be sold for consumption in Great Britain, unless the quarter of wheat, (eight bushels,) exceed 80*. sterling. That is, unless wheat be about !S2.22 per bushfl, which it has not been since the year 1817. Of the exact price at which bread-stuffs may be import- ed into Portugal, I have not adequate information. Sufiiceitto say they are at present excluded. American flour is only admitted in France on bond for expor- tation to the French colonies, or elsewhere. It is absolutely prohibited for home consumption . Here a solemn pause is necessary. We receive French silks, and British linens, at fifceen ; China ware, cotton and woollen stockings, and manufactures of steel, at twenty ; and fine mus- lins, laces, gauzes, woollen goods, &c. at 25 per cent, duty : yet, wonderful to tell, neither France nor Great Britain will receive, on any terms whatever, one barrel of our flour, nor one bushel of our wheat, or Indian corn, for their own consumption, in payment for those articles. If this be reciprocity, and freedom of trade," language has wholly lost its original meaning. Surely then the time has arrived, when, as " Europe will not take from z/a" so large a portion of " the products of our soiOl'' «n anv " terms^'' wo should apply what Alexander Hamilton 472 THE farmer's and calls the '•'- natural remedy ;^'' that is, '•'■ contract as fast as poa-^ sible our -wants of her:'''' — and, for " ?Ae* increasing surplus of our agricultural products, create a more extensive demand at home.'''' This, however, is somewhat of a digression. I resume the subject of my first address. I trust I have therein made it appear that very large numbers of persons, whose proper province was manufactures, have, from want of encouragement in their original occupations, been compelled to betake themselves to agriculture. I ventured an estimate, that about 27,000 families, or I6u,000 persons immi- grants, descendants of immigrants, and others, were in this pre- dicament. It now remains to calculate the degree of the evil. For this purpose, it is necessary to ascertain the extent of the market they would afford the farmers, but for their change of profession — as well as that of the surplus beyond their own consumption, which they raise for sale in their present occupation. In estimating the value of their consumption, I shall not predicate it on the extravagant war prices, nine, ten or twelve dollars per barrel for flour — twelve cents per pound for beef and pork — thirty-seven and a half cents for butter, &c. &c. ; nor on the late reduced prices, which are in many cases below those that existed previous to the adoption of our present con- stitution. I will take it at a medium, say six dollars per barrel for flour, and other articles in proportion. I presume it will be conceded, that the food and drink of each individual in society is worth about one dollar per week, equal to fifty-two dollars per annum. At this rate, these 160,000 persons stated above, consume annually to the value of ^3,320,000, which ,they now raise themselves, but which they would be obliged to purchase of their farming fellow citizens, had they remained in their original occupations. In order to appreciate the importance of this market to the farming interest, let it be considered, that the whole amount of animals and animal and vegetable food exported from the uni- ted states from ISi-.-S to 1820, inclusive, averaged only about 15,0'00,000 of dollars per annum, as will appear from the fol- lowing. PLANTER S FRIEKD. 4n Table of Exports from the united states, of animals and animal and vegetable food from 1803 to 182Q inclusive,* Animals and Vegetable animal food. food. 18U3 84,134,000 14,^80,784 1804 4,284,568 12,080,684 1805 3,385,000 11,752,000 1806 3,274,000 11,050,000 1807 3,086,000 14,432,000 1808 986,000 2,550,000 1809 1,811 000 8,751,000 1810 2,169,000 10,750,000 1811 2,866,000 20,391,000 1812 1,657,' '00 17,797,000 1813 1,101,000 19,375,000 1814 481,000 2,216,000 1815 1,332,000 ll,234,0o0 1816 2,093,000 13,151,000 1817 2,069,000 22,954,000 1818 1,936,000 19,048,000 1819 2,025,(iOO 10,473,000 1820 Total 2,447,000 8,401,000 841,120,568 230,486,368 Animals and animal food Vegetable food Total for 18 years Average . _ - 841,^20,568 230,486,368 271,606,936 8K%089,274 Thus it appears, that the favourite doctrine, which has for thirty years been preached to, and forced on, our manufacturers,- to '-'- go back'''' to cultivate the soil, has deprived our farmers of i domestic market, independent of the frowns or smiles of fo- reign nations, as well as of the variety of fluctuations to which foreign markets are liable, — a domestic market, I say, which is equal to above fifty per cent, of the market afforded by all the foreign world, for our animals and animal and vegetable food, even at the very extravagant prices which occasionally prevail^' ed during the wars of the French revolution. * Seybeil'e Statistics, page 147. 60 4/74 THE IARMEr's AK0 This simple fact holds out to the farming interest an admOni-. tory lesson of the mos' impressive kind, and evinces that the ruin, which the want of protection has inflicted on so large a portion of the manufacturers, has recoiled with equal pressure and violence on the farmers. This case bears as strong testim )ny to the sterling wisdom of the fable of the belly and the mem- bers, as the world has ever witnessed. May it never in future be forgotten or neglected by American legislators ! GUATIMOZIN. NO. III. " In vain do we discover that the earth is capable of producing' the most luxu- " riant harvests with very little labour. Our abundant harvests are produced as " undeniable proofs of this in vain : But place a manufacturer m the neighbourhood, " who -will bvy every little article that the farmer can bnng to market, and he -udll "soon become industrious. The most barren fields -will then become covered-mth some "useful produce." — Anderson on national Industry. Page 62. " The difference, however, is very great between a market obtained abroad " and one that arises from manufactures being established in the neighbourhood: "for many articles that the farmer could dispose- of -with profit, ds not admit of being "carried to foreign markets in any case -whatever ; so that he -who has to rely upon "these alone, must be sjibjected to very great inconveniences. All softs of green crops " come under this denomination." Idem, page 68. The amount of the raw materials which the 27,000 families stated in my former address, would consume, had they remain- ed in the class of manufacturers, is of much greater magnitude than the amount of their food and drink and that of their fa- milies. An examination of the census of the united states will evince, that above one-fourth part of our population, is composed of males, of and above 16 years of age. Census or 1820. Free white males below 16, - - - - 1,956,365 — — — of 16 and above, - - 2,015,801 Free white females below 16, - 1,884,534 -_ ^ — of 16 and above, 1,979,382 3,972,166 —3,863,916 Total free whites, - - - - - 7,836,082. planter's frienb. 4-75 In the families of manufacturers, the males of 16 and above, are almost universally employed in the business of manufactur- ing; as also many of the males below 16, and the females of various ages. Of the 160,000 persons, who, as stated in my former number, depend on farming instead of manufactures, I shall, therefore, according to the above abstract of the census, assume, that one-fourth, or 40,00U, being the males of and above 16, would be actually engaged in manufacturing ; and endeavour to make an estimate of the raw materials they would consume had they not changed their prof ssion. In many branches of business, the raw materials very far ex- ceed the wages paid to the workmen — in others they are about equal — and in some few they are below. It may therefore be assumed, that the raw materials are, on an average, at least equal in amount to the wages of the work- men, an average which, I am persuaded, is very far below the real state of the aflfair. Setting aside the present wages, which are greatly reduced, it may be stated, that for thirty years from the organization of our present form of government, the wages of males employed in manufactures have been from four to ten dollars per week. A few species have been at the extremes — but the great mass have been at five, six, and seven dollars. I presume I may ven- ture on an average of five dollars and three quarters throughout all the branches — and that it will be readily admitted that the workmen consume respectively of wool, cotton, hemp, flax, leather, silk, timber, grain for distillation, &c. &c. an equal amount weekly. Raw materials to the amount of five dollars and three quar- ters per week, consumed by 40,00 _ - - - 6,356,852 It is easy to conceive, that the great surplus of 8,000, 0(J0 bushels of grain, must have a decided and irresistible influence in depressing the price of our bread-stuffs at home and abroad. The exact extent of the depression is not so easily ascertained. I shall endeavour by analogy to arrive as near the truth as pos- sible. I shall suppose, by way of illustration, that 150,000 barrels of flour are necessarj^ for the support of a certain district of country for a given time, and that the fair price is ten dollars per barrel. If the supply be limited to 100.000 barrels, the price will proba- bly rise to 20, 25, or perhaps 30 or 35 dollars. If, on the con- trary, there arrive 200,000, it will sink down to five or six, or per- haps to four. Of this reasoning, the West Indies constantly offer examples. New-Orleans likewise exhibits cases of both effects, enhance- ment and reduction, often alternated monthly. An immoderate quantity of the produce of the western country, particularly flour, is occasionally collected there. The danger of its becom- ing sour, induces the owners to urge the sale. The price sinks in proportion to the quantity in market, and the eagerness to sell. The low price tempts speculators to purchase largely, and thus the market is cleared of the superabundance. The prices then frequently rise as high beyond the proper level, as they had before been depressed. The grain crops in England in 1799 fell short one-third, ac- cording to the statement of Arthur Young, secretary to the board of agriculture. Prices rose, in consequence, one bunded per cent, in twelve months, notwithstanding every effort of the government to keep them down by bounties on importation — and notwithstanding immense importations — and likewise the substitution of potatoes and various other articles in lieu of grain. It requires little sagacity to deduce fro r\ this statement of cause and effect, which are as constant and uniform as any of the operations of society, the pernicious results of a system which constantly tends to increase the number of producers, and of course the quantity of the fruits of the earth, and to narrow the 4^8 i:he farmer's and markets for them. Of this two-edged sword, the farmers at present feel the edge with awful severity. Let me once more repeat the all-important, but neglected truth, that the conversion of manufacturers into farmers has a four-fold pernicious operation on the latter class — It increases their surplus — diminishes their market— lessens their customers— and increases their rivals. Another evil of serious importance to the farmers, resulting from this state of affairs, remains to be considered. We have seen that at the late census there were in the united states, of free white females of sixteen and upwards, no less than 1,979,382. Three-fourths of our population belong to the class of cultivators of the soil ; which, of course, embraces 1 ,480,000 females of the specified ages. Were manufactures carried on with proper spirit, throughout the nation, a very considerable number of these fe- males, and indeed of those below 16, as well as the male chil- dren of farmers, of that age, would find employment in sewing, spinning, carding, weaving, &c. &c. for the manufacturers. I will suppose that 200,000 females would be thus employed, and at the low average wages of one dollar and a half per week. This would amount per annum to S 15,600,000. Should any idea be entertained that the number here assum- ed is too high, it will be removed by the consideration of a few facts. The Waltham factory in the neighbourhood of Boston, em- ploys about 260 females, of various ages, principally the daugh- ters of the adjacent farmers. By the decline of the paper manufacture in 1818 and 1819, there were, within 30 miles of Philadelphia, nearly 800 persons bereft of employment, of whom two-thirds were females, and, like the former, chiefly the daughters of the farmers of the vi- cinity. Mr. Gallatin, in his Report on Manufactures, states, that of 178 persons dependent for support on a factory in Rhode Island, there were in the establishment males - - 24 Females, - - 29 5Z Employed in neighbouring families, Males, . - 50 Females, - - 75 125 178 The latter 125 principally belonged to farm houses. A cotton mill was lately burned at Patapsco,in the neighbour- hood of Baltimore, whereby about one hundred persons were thrown idle, of whom three-fourths were females of the same description generally as those already stated. PLANTER*S FMEND. 4,79 Combining these circumstances with the number of manufac- tories which have of late years been partially suspended, or wholly shut up — and likewise taking into view the hundreds of those establishments which would be called into existence, by an adequate encouragement of manufactures, it is easy to perceive, that the number of females assumed, far from being too great, must be regarded as very moderate indeed. One more evil to the farmers remains to be considered. In calculating the number of our citizens, who depend for a support on raising bread-stuffs, to avoid controversy I assumed only 3,625,734. Our population being at present 9,625,734, it would thence follow that 6,000,000 are purchasers of bread- stuffs from the residue. But 1 shall only suppose the number of purchasers to be 4,000,000, which includes the clergy, lawyers, merchants, mechanics, manufacturers, tradesmen, seamen, clerks, and those planters, who, employed chiefly in raising cotton, to- bacco, and sugar for sale, purchase wheat flour for their own use and that of their families, except their slaves. That is, that nearly one half of our population depend for food on the other. Now, the annual consumption of grain of each individual, may be fairly estimated at about nine bushels. At this rate the 4,000,000 of persons above stated, purchase bushels 36,000,000 The grain distilled last year was about - 10,0^)0,000 And the grain exported averages annually about 6,000,000 Total bushels of grain - - - - 52,000,000 Assuming what cannot be denied, that the great surplus of 8,000,000 of bushels of grain raised by the 40,000 males of 16 years of age and upwards, whom I have stated as compelled to become farmers by want of encouragement in manufactures, has been a grand and efHcient cause of the reduction of the price of the necessaries of life — and assuming, also, that the reduction has been only thirty-three cents and a third per bush- el on grain, it amounts, on the above 52,000,000 bushels, to !S 17,333,333. It now remains to sum up the whole of these various items: Loss of the sale of provisions for 160,000 persons S6,240,000 Loss of market for raw materials - - 11,960,000 Loss of labour of women _ _ _ - 15,600,000 Loss on 52,000,000 bushels of grain - - l7^^2,Z^oZ3 Total annual loss on the farming interest §45, 133,333 480 THE farmer's and Although I believe these calculations substantially correct, yet I am very far from being tenacious of their critical exact- ness. As I have struck into a path literally untrodden, it would be very extraordinary, if, considering the meagreness of the data I had, my estimates were absolutely free from error. But what- ever may be the drawbacks made upon them, they cannot de- stroy the important inference, that the policy hitherto pursUed in this country, by compelling manufacturers to '■'g'o back''' to cultivate the soil, is fraught with the most pernicious conse- quences, not merely to the farming interest, but to the nation at large. GUATIMOZIN. Philadelphia^ March 30, 1821. NO. IV. " Considering- how fast and how much the progress of new settlements in the " united states must increase the surplus produce of the soil, and weighing seri- " ously the tendency of the system, which prevails among most of the commercial " nations of Europe, whatever dependence may be placed on the force. of natu- " ral circumstances to counteract the effects of an artificial policy : there appear " strong reasons to regard the foreign demand for that surplus, as too uncertain a " reliance, and to desire a substitute for it in an extensive domestic market, " To secure such a market, there is no other expedient, than to promote manufac- " tvring establishments. Manufacturers, who constitute the most numerous class, « after the cultivators of the land, are for that reason the principal consumers of- " the surplus of theii- labour. . « This idea of an extensive domestic market for the surplus produce of the e of improvement in the prices, the holders in *' general continue to be anxious sellers, apprehending a still further decline " iv/ien the iiew crop of Jlmerican cotton begins to come freely forward. Uplands " now sell at 7^ to IOt ; those of the new crop at 8^ to 10 J ; Alabamas and Ten- " nessees at 7^d to 8^ ; New Orleans 8 to I2d. — and a few extra fine at 12^. <• Sea Islands are particularly dull, and sell at 14d. to 21d. " The stocks in the hands of the ikcUers are estimated as being from 15 to 20,000 " bags more than they were at this period last year. "From the moderate prices of cotton, tlie more general employment of the « working classes of this countiy, and the fair though not high prices of labour, « with tlie low rates of provisions, we think there is a just ground to presume up- « on a continuance of the present rate of consumption of cotton manufactures, " and even to presume upon . some increase. But -Mhile tlie imports contimte to " exceed that consumption, great as it is, the prices must continue to ilecUne ; and -mU "no doubt become so low as to cease to remunerate the planter for the expenses ofpi'o- " duction, uxid thereby to diminish t/ie fiiture growth. The low prices and better « qualities of American and Brazil cotton, it may be noticed, arc not unlikely to « have the effect of causing them to be substituted for part of the present con- " sumption of East India cotton, h ought also tf be kept in view, that the state of 62 490 THE farmer's and " the currency in this country, and the diminislied amount of capital, are circumatan- " ces likely to co7itinue to operate very poiu erf nUy in keeping all articles, and particU' " larly those of -which there is any excess, in the s-upply, at vert low piiices." Morrall and Watson, under the same date, corroborate those views : — " The import this month is expected to be considerable; and seeing the pre- « sent disposition of importers to sell on amval, there seems little chance of any " early amendment in prices. On the contrary, indeed, as there appears to be too " much cotton grown, it becomes doubtful if prices wUl improve, unless the produce « is dimimshed : and time alone can show how far the present reduced rates may " have that effect, or tend to keep back supphes." John M^Adam & Co. on the 20th of same month, state — " ^s each succeeding' arrival from this country ■will furnish -worse and -worse ac- " counts of our markets, it is to be hoped that the prices on yoiir side -will decline in " tlie course of the season, so as to render shipments safe andperhaps profitable" Maury & Latham, on the same day, write to the same effect : — " The increased cultivation in the united states, Brazil, and the East Indies, " must gain greatly upon the consumption. With this view of the subject, it " -would be hazardous to hold out any expectation ofpeimanent improvement in price, " loTV as it certainly is." Yates, Brothers, & Co. on the 31st of the same month, write : — « If it be true, as stated in the advices from the united states, that the " crop now coming forward, will be at least equal to the last, the stock of Ameri- « can cotton in this country must continue to accumulate still more, even sup j " posing there shoidd be some further increase in the home consumption, " which indeed is probable, as the lower qualities of boweds and Orleans are " getting into greater use as substitutes for Siu-ats, the prices of the latter hav- " ing lately experienced little decline in proportion to those of the former. " While tlds excess of supply continues, prices must be very lo-w : and it is natural « to expect that a reduction -will take place in the united states corresponding -with the " rates paid in this country." A more recent accoimt from Liverpool, states — !"Our cotton market is in a wretched state — and I declare I can see no pros*' " pect of any improvement for some time. Some of our largest importers force <' it off as it arrives. Fair uplands are only worth 9d. to 9\d. There is not « one bale in a hundred that wUl bring lOd. Sea Islands ai'e very difficult of "sale." . Crowder, Clough & Co. under date, Feb. 10, write : — *' Our market closes this week, -worse, absolutely, than it has ever been yet : and " we consider the price of uplands to be at J per lb. lower ; for 9d. can with « difficulty be had for quahties which commanded 9\ readily last week." My next number shall be devoted to a further examination of the causes of the decline of the price of cotton, and of the practicability of applying a remedy to a state of things so inju- rious to national and individual prosperity. Philadelphia^ April 7^X^21. GUATIMOZIN. planter's friend. 491 NO. V. *'No earthly metliod remains for encouraging agriculture, where it has not *' reared up its head, that can he considered in any rouy efficacious, but the establish' *' ing proper manufactures in those countries you -wish to encourage J" Anderson on Industry, page 70. " If a manufacture be established in any rich and fertile country, by convening ** a number of people into one place, who must all be fed by the farmer, without " interfering with any of his necessary operations, they establish a ready market for "the produce of his farm, and thus throw money into his hands, atid give ^rit and " energ-y to his culture." Idem, page 37. " Insurmountable obstacles he in the way of a farmer in an unimproved coun- " try, who has nothing but commerce alone to depend upon for providing a mar- " ket for the produce of his farm." — Idem. " The aggregate prosperity of manufactures, and the aggregate prosperity ofagri- " culture, are intimately connected." A. Hamilton's Report on Manufactures. *' In places where manufactiuing institutions prevail, besides the persons regu- « larly engaged in them, tliey afford occasional and extra employment to indus- " trioiis individuals and families who are wilhng to devote the leisure resulting ** from the intermissions of theu* ordinary pursuits, to collateral labours, as a re- « source for multiplying their acquisitions or their enjoyments. The husbandman " himself experiences a new sow^ce of profit and stipport, from the encreased industry "of his -wife and daughters ; invited and stimulated by the demands of the neighbour- " ing manufactories." Idem. " The exertions of the husbandman will be steady or fluctuating — ^vigorous or "feeble, inproportion to the steadiness or fluctuation, adequateness or inadequatenees "of the markets 07i ivfdch he must depend for the vent oftJie surplus, which may be "produced by his labour ,- and such siu-plus, in the course of things, will be greater " or less in the same proportion. For the purpose of tliis vent, a domestic market " is greatly to be preferred to aforHgn one ; because it is, in the nature of things, far " more to be relied on." Idem. " There are natural causes tending to render the external demand for the surplus of "agricultural nations a precarious reliance. The difference of seasons in the *' countries which are the consumers, make immense differences in the produce *' of their own soils, in different years, and consequently in the degrees of their " necessity for foreign supply. Plentiful harvests with them, especially if similar ••ones occur at the same time in the countries which are the furnishers, occasion, " of course, a glut in the markets of the latter." Idem. " The regulations of the several countries with which we have the most exten- " sive intercourse, throw seiious obsti'uctions in the way of the principal staples "of the United States. Jn such a position of things, the united states cannot ex- " change with Europe on equal terms ,• and the want of reciprocity would render them "the victim of a system which should induce them to confine their views to agriculture, " and refrain from manufacttires. A constant and encreasing necessity on their part "for t/ie commodities of Europe, and only a partial and occasional demand for their own, " ir. return, could not but expose them to a state of impoverishment, compared « with the opulence to which their political and natural advantages authorise them " to aspire." Idem. " T7ie substitution of foreign for domestic manufactures, is a transfer to foreign " natioivB of the advantages accruing from the employment ofmacldnery, in the modes " in which it is capable of being employed,pvith most utility and to the greatest extent." Idem. UNLESS I am greatly deceived, my last Number IV. ac- counted satisfactorily for the recent serious and injurious de- pression of the price of cotton, the primary staple of this coun- try ; and proved that in the present and probable future state of the culture of that article, in the united states and elsewhere, there is no hope of a ^vourable change — in fact that there is 492 THE farmer's and every appearance of a great further depression — unless efficient measures be adopted to extend and secure the domestic market, so as to diminish our exportable surplus. The \ ital importance of this topic will justify me in devoting the present number to an investigation of the causes that led to the excessive and per- nicious reduction of price which took place in this country du- ring the first six months of the year 18i9, and produced such a serious diminution of income to the planters, and so much bank- ruptcy among our exporting merchants I shall also exhibit a view of the present state of the British market, with respect to East India cotton, in order to remove some errors which pre- vail with many of our citizens on this topic. The importation of cotton into Great Britain from this coun- try, the Brazils, Portugal, and the West Indies, in 1811, 12, 13, 14, and 15, was on a limited scale, and scarcely commensi'rate with the demand, particularly in the last year, when the con- sumption greatly increased immediately after the pacification of Europe, in consequence prices rose verv high, ranging from 1*. &d. to 25 6 7 Brazil, and Portugal, - _ _ 114,S16 West Indies, &c. - - - - 47,208 Total, 478,395 The East India Cotton, it appears, was very nearly one-fourth of the whole quantity. To this operation, which ought to have excited the most se- rious alarm, no attention whatever was paid by congress. There was not the slightest effort made to carry into effect the sage recommendation of Alexander Hamilton, to " secure a domestic market^'' as a " substitute'''' for that '■'•foreign demand''* which was too " uncertain a reliance''' for " the surplus''' of this important staple. A candid development of past errors is always useful, as af- fording salutary admonitions for future conduct. It is much to be regretted that these admonitions are so generally disre- garded. The striking impolicy of the apathy and neglect on the part of congress, and particularly the cotton planters in that body, will appear palpable by a statement of the average amount of the importation of our cotton into Great Britain for that and three preceding years, and a comparison of that average with the quantity above stated imported in 1817 from the East Indies. The three intervening years of war are omitted. — Importation of united states cotton into Great Er'itain. 1811, bales, 128,200 1815, 201,000 1816, 166,000 1817, 195,560 Total, 690,760 Average, 172,690 A very slender consideration of the subject would have na- turally excited anticipations of the most unfavourable results, from a formidable rival having entered the lists, possessing a boundless capacity of production, and at once pouring into the 494 ITHE FARMER S AND market about 68 per cent, of our former supplies. This was ominous of a fearful change in the resources of this country. In 1818, the importation of East India Cotton greatly in- creased. It exceeded that from the united states about 20 per , cent. — and was actually 37 per cent, of the whole importation jof that year. Cotton imported into Great Britain in 1818. United states, . - - bales 206,728 East India, 244,608 Brazil and Portugal, - - - 160,130 West India, &c. - - . - 54,877 Total, 666,338=>^ These rapid strides were regarded by congress, like those of the preceding year, with an apathy and indifference wholly unaccounta<>le. This was a dereliction of dut}^, which entailed the most serious injury on the planters and exporting merchants. Should it be asked what remedy could congress have applied to this menacing evil, I reply that I hope to make it appear in the ensuing number, that a simple and efficacious remedy was in their power. The consumption of Great Britain in 1818, was United states, . - . bales, 160,870 East India, ----- 98,700 Brazil and Portugal, - . - 124,200 West Indies, &c. - - - - 45,950 Total, 429,720f The plea of ignorance could not be alleged to justify or ex- tenuate the utter neglect of precautionaiy measures. The most luminous accounts of the precarious situation of that market, and the formidable rivalry that existed, were, in 1818, as in the preceding year, transmitted to this country by the Liverpool merchants, and disseminated through the union in the news- papers, as may be seen by the following extracts. But menac- ing as was the danger, and admonitory as were the advices, there was not a single step taken to avert the impending storjtn. « The most remarkable, increase of imports, has been in East India cotton : and "the stock of this description is considerably hesLviertha.nitwa.s.fBat the consnmp- " Hon of it is increasing- very rapidly ; being now very probably not less than 1,000 « bales per week more than it -was kmtyear."-!f * Laurence, Willis & Go's price cuTTent, Jan. 1, 1819. + Dutr, Findlay & Co.'s price cuirent, Jan. 6, 1821. + Yates, Brothers, '& Co. Liverpool, Jiily 1, 1818. planter's FRIENB. 495 ** Of Tenessees we have a less favomuble opinion. They are more on a level with ^^ good Bengals, ami middling Surats ,- and are likely to accompany thenn in any " decline. East India cotton, except Surats of a qiuility that is convertible to the " same purposes as ordinary Boweds and Orleans, nnistdecline ; ;is tlie very heavy " imports are not likely to be checked till the crop of 1817, and perhaps not till " that of 1818, is shipped. Surats still leave a profit ; tliough Bengals lose consi- " derably. But Bengals will probably dechne in'incUa, so as to meet the dechne " here, and still continue to be groivn and s/iipped."* " The use both of Bengal and Surat is become very considerable ; and while " there continues so great a relative difference in price between tliem and the " descriptions witli which they come more immediately in competition, there " seeing good reason to apprehend that their use will continue to eTiend."-\^ " Our present heavy stock of East India cotton which will continue to increase " for some time yet, and the fact that it is getting more into use by the spinners " altering t/ieir machinery for using it, on account of the very low prices, will pre- " vent any considerable advance on American cotton for the greater part of next " year. It would, therefore, be vei-y hazardous to ship upland and JVew Orleans " cotton but at a very great reduction of former prices. Yesterday we had two tnore " cargoes of Surat cotton from America, whicii, with two cargoes tliis day from " Bombay direct, must have the effect of depressing this description of cotton "still more."+ " The demand there now is for good Surat cotton, will very seriously interfere " with American cotton, particularly uplands of an inferior quality, and will have "the effect of depressing them in price. "§ " From a review of the imports and stock at the end of each year, it appears " that there has been an increase in 1818 in the cotisumption of India o/26,00U bags ,- " of Bi'azil also some increase ; but a dea'ease of American of about 12,0-0 "f " Upland cotton, the leading ai-ticle of import from the united states, is likely " to be much interfeivd with by East India cotton, to the spinning of which many of " our mills are adapting their machinery, and many Tiew ones are building, solely cal- «« ciliated to consume it. There seem to be no limits to the quantity tliat can be « produced in that countiy, and which is materially aided by the low price ot la- *« hour. During the first six months of the last yeai; they exported 100,000 bales more " than they did the preceding twelve months/ Its extreme low price will force it " into consnmp\JiOn,to the exclusion of other descriptions."** " The importers of Alabama cotton have endeavoured to establish a distinction « between this description and Tennessee, in favour of the former : but both hinds " are in the highest disrepute, and cannot be valued at more than twelve pence to " twelve pence ludfpenny pm pound. East India cotton is not quoted lower. But we « think the latest sales, both of Surat and Bengal, liave been on a dechne of a " farthing per pound-ff The fatal consequences of this competition, and of the neglect to apply a remedy, did not, however, begin to develope them- selves in Liverpool till the commencement of 18i9. The aver- age price of boweds there on the 1st of January in that year, was 18| pence ; thev fell in February to l6 — in March to 15 — in April to li- J — in May to 12 — and in June to 1 1-J. In Philadelphia, the average price of Louisiana, Tennessee and Georgia Cotton, in December, 1818, and till about the close of ; 'iii •^ Yates, Brothers, & Co. Liverpool, Nov. 10, 1818. t Cropper, Benson, & Co. Li\'erpool, 11th Month, 30th, 1818. I John Hichardson, Livei-pool, December 28th, 1818. § Idem, January 1, 1819. 1 Yates, Brothers, & Co. liverpool, January 2, 1819. ** W. Sc James Brown, & Co. Liverpool, January 13, 1819. tfRathbone, Hodgson, & Co. Liverpool, September 30, 1819 496 THE farmer's an6 January 1819, was 33 cents per lb. The advices from Liver-' pool reduced it, towards the end of the latter month, to 261 cents^ and it continued to decline gradually till the 25th of June, when it arrived at its ultimate price of depression ; that is, I6i cents per lb. being a reduction of fifty per cent in about five months. It is very desirable, but extremely difficult, to ascertain the precise amount of the loss to the exporting merchants, and the diminution of income to the planters, produced by this depreci- ation. I will hazard an estimate, which, I trust, will be found not far from the truth. The crop of this country for the year 1818, may be safely stated at about 130,000,000 of pounds. The amount exported, according to the report of the secretary of the treasury, was above 92,000,000 of pounds. The remainder was consumed in manufactories and in private families. The depression in Liver- pool having commenced in January, it must have fallen on a portion of the old crop and nearly the whole of the new, as scarcely any of the latter could, at that time, have been sold in England. It remains to ascertain the operation of the reduction I have stated. As it was gradual, from 33 cents to l6i, I shall assume, that lbs. % 10,000,000 were sold at 33 cents, - - 3,300,000 20,000,000 at 26 1-2 cents, - - - - 5,300,000 20,000,000 a 24 cents, ----- 4,800,000 30,000,000 fl22 6,600,000 20,000,000 fl20 4,000,000 20,000,000 a 18 3,600,000 10,000,000 a 16 1-2* 1,625,000 lbs. 130,000,000 Dollars, 29,221,000 This forms an average of about 22|. cents, and nearly corres- ponds with the custom-house valuation, which is 22 cents for the whole year.f The entire crop, at 33 cents, the price before the reduction began, would have produced ^42,900,000, making a difference of 13,675,000 dollars of which probably 5,(j00,000 were lost by the merchants, who purchased on a market steadily lailmg — and the remainder a positive diminution of the income of the planters. I deem it necessary to repeat what I have already stated, that * There was a gradual, but small rise in the price after June : and therefore \ have estimated that 30,0J0,0001bs. were sold at 22 cents. t Report of the Secretary of the Treasuiy for 1819. Planter's friend. 497 in these calculations I do not pretend to critical correctness, which is in this case absoluteh^ unattainable. But I believe them substantially correct, and approximating as near to the truth as is practicable. Many of our citizens — planters and merchants — flatter them- selves into an opinion, that the competition of the East India cotton with that of the united states, in the markets of Great Britain, is wholly at an end, the former having been found so far inferior, as to be nearly, if not altogether abandoned by the manufacturers of that country. This idea has been industriously propagated, and fondly believed, throughout the united states. That it is a complete ''day dream,'Svill satisfactorily appear from an examination of the following facts. The decrease of the importation of this cotton has arisen from the failure of the crops in the East Indies, which has pro- duced such a scarcity there, and in China, that the East India Company in January last purchased 10,000 bales in London and shipped them for the latter country. And it was expected they would for the same purpose make a further purchase of 18.000 bales. " Tlie East India Company have purchased 10,000 bags of India cotton for " shipment to China : and it is expected that they will take a fm-ther quantity, *• by some persons stated at 18,000 bags, for the same purpose."* While our cotton, however, continues at or near its present depressed price, the consumption of that of the East Indies will be very considerably limited in Great Britain. At those prices, united states cotton is more advantageous to the manufacturer than either Bengal or Surat, at their respective rates, the differ- ence in the price not being equal to the difference in the staple. But those kinds will unfortunately always serve as a check to prevent the rise of ours. Notwithstanding the low rates of our cotton, and its superi- ority over that of the East Indies, the consumption of the latter is considerable, and increased last year about fifty per cent, be- yond that of 1819. Co7isumption of Cotton in Great Britain in 1819 and 1820. 1819. 1820. United States, - - - bales 209,000 246.900 East India, - - . . 49,600 74,40O Brazil and Portugal, - - - 126,400 135,100 West India and other Kind^ - - 33,500 30,350 Total, 418,500 486,750| * Rathbone, Hodgson &Co's price current, June 20, 1821, t Maury & Latham's price cun-ent, Jan. 20,1821. 63 498 THE FARMER S AND It thus appears, that the consumption of East India cotton last year, was about fifteen per cent, of the whole quantity used in Great Britain ; one half as much as that of Brazil, and nearly one third as much as that of the united states- . It is an extraordinary and unaccountable fact, that notwith- standing the great importation of East India cotton in 1817 and 181iS, the price of that species has by no means experienced such an oppresssive reduction as that of the united states, Brazil, Por- tugal, &c. as will appear from the following Table of the Prices of Cotton in Liverpool^ at the close of the last three years. 1818 1819 l:j2f;. Bowecis, d. d. ■>7 to 20 12 1-2 to 14 8 1-4 to 1^3-4 Bengals. d- d. 7 1-2 to 10 1-2 7 to 8 3-4 6 to 7 3-4 Surats. d. d. 8 to 14 1-2 7 1-2 to 10 1-2 r 1-4 to 9 Maranhams. d. d. 20 to2i 15 1-2 to 16 11 tor: Pernams. /. d. 22 1-2 to 24 ir to 18 11 3-4 to 13* It thus appears, that the price of our cotton has experienced a reduction of nearly 50 per cent, from the 3 1st of December 1818 to the 31st of the same month, 1820 ; Maranham and Per- nambuco, 45 ; but Surat only 27 per cent., and Bengal only 25. It was my intention to have undertaken to establish the posi- tion that Congress had a preventative in its poAver for a portion of the injurious effects of the reduction of price of 1819, and 1820. But it would have extended this essay to an unreasonable length, and therefore I postpone it till my next number. GUATIMOZIN. April 15, 1821. P. S. The following extracts of letters from Liverpool, un- der date of the 10th of February, afford complete additional cor- roboration of the views held out in No. IV. « Our market is in a very depressed state ; indeed it is impossible to say how " much lower it will go. We should think, however, it has nearly seen its low- " est for uplands. It is difficult to effect sales of the short staple cotto?i of Carolina " and Georgia at 9d per lb. to any extent^ unless the quality is v ery good. We have " sold, it is tri le, 100 bales prime old New Orleans at 10 J. wiiich were bought early " in the setison at high rates on speculation, and have been held until the present «< period. As to sea island, we cannot give you a better idea of them than to inform '< you that 02ir braker bought this morning forty bags 6?'«7icferf " Belfair," at 16d, «' Tiiese cottons, we conceive, are so well known in your market, that you will <« by them be able to fix a standard for all others." " The losses on this article will, I fear, niin many of the importei^s : and few wiU « be able to stand so great a reduction of property. The last accounts from your «' s (ie of the water quote cotton at 15 a 16 cents, and from New Orleans 15 1-2 a " 17 cents. This is very little less than -what cotton sells for here, say nothing of " charges ,- and this iias been the case for the last nine months. W'^hat the result " will be no one can tell ; but I fear dreadful." Buflf, Findlay & Go's price current, Jan 6, 1821. planter's prienb. 499 NO. VI. <' If the system of perfect liberty to industry and commerce, were the pre- " vailing system of nations, the argTimeats which dissuade a country in the pre* « dicament of the united states, from a zealous pursuit of manufactiu-es, would " doubtless have great force."*** " But tliis system is far from chai'acterising " the general policy of nations. The prevalent one has been regulated by an " opposite spirit. The consequence of it is, that the united states ai-e, to a cer- ** tain extent, in the situation of a country precluded from foreign commerce. " They, can, indeed, without difficulty, obtain from abroad the manufactured sup- " plies of which they are in want. But they experience numerous and very injw-ioun " impediments to the emission and vent of their commodities. Nor is this the case in " reference to a single foreign nation only. The regulations of several countries " with which we have the most extensive intercourse, throw serious obstructions in the " way of the principal staples of the united states." — Alexander Hamilton's report on manufactures. Friends and FeUoxv Citizens., Many of our citizens, among whom are classed no small number who rank high in station and talents, ascribe the de- cline of the national prosperity chiefly to the transition from a state of war to a state of peace ; and are firmly persuaded that nothing but a renewal of war in Europe, which would afford us a market for the superabundant produce of our soil, can com- pletely restore us, and place us on the high ground we for- merly occupied. This is a view of our affairs, as gloomy and disheartening as it is erroneous. It is predicated on the idea, that the pros- perity or misery of nations depends on circumstances over which they have no control ; that they are not moulded and fashioned by their own policy ; and that a nation, super-em inently blessed as we are, with every advantage, natural, moral, and political, is doomed to suffer distress and embarrassment, un- less other nations are ravaged and desolated by wars and fa- mines ! This idea can never be admitted for a moment. It is belied bv the history of every nation, wise or unwise, ancient or modern ; by which it is proved, that nations, like individuals, make their Own fortunes ; that wise systems of policy will produce pros- perity, and unwise ones distress ; that the degree of prospe- rity or distress will always be in due proportion to the degree of the wisdom or follv of their policy ; that when a nation is in a state of suffering and distress, unless produced by some very extraordinary and inevitable calamity, as earthquakes, famines, invasions, &c. it affords conclusive evidence against its policy ; that no natural or other advantages, how tran- scendantly great soever, will insure prosperity to a nation, under an unsound policy ; that the contrary policy will suc- cessfully struggle against and overcome the greatest natural 500 THE farmer's and disadvantages ; and finally, that when nations are not ground down by wasteful and profligate governments, and grievous and grinding taxes, a sound system will insure their prospe- rity, whether universal peace prevail, or the whole world be engaged in warfare. A corollary from all this is, that as our government is neither wasteful nor profligate, nor our taxes oppressive, our present distresses can be charged only to our wayward policy. Spain, Ireland, France, and the united states, most forcibly illustrate this theory. Spain enjoys a fertile soil and mild climate, and has derived immense wealth from her colonies ; and yet she has for centuries been miserable and wretched, through the insane policy she pursued, whereby her wealth was lavished on strangers, while her own people were pining in idleness and want. Should she escape, as heaven send she may, the fangs of the Holy Alliance, and persevere in the sound system of policy she has recently adopted, she will, within a few years, attain that grade in the scale of nations, to which she is eminently entitled by her local situation and immense ad- vantages. Ireland is blessed with natural advantages at least equal to those of England — and yet has at all times exhibited a most lamentable picture of poverty and wretchedness, while Eng- land, until of late, has enjoyed a high degree of prosperity. This arose principally from the circumstance, that the middle and higher orders in the dependent kingdom were clothed by the manufactures of the dominant one, and the wealth of Ire- land was lavished to support the industry of England. France exhibits a strong case on the opposite side of the question. She was wasted by a tedious and bloody war, of above twenty years duration ; suffered for three or four years the havoc and ravage of numerous hosts of licentious soldiers ; and was laid under a heavy contribution of about 100,000,000 dollars.* From all these enormous evils she has recovered in a few years, by the system of protecting her domestic indus- try, and not lavishing her wealth on strangers. She now en- joys, in consequence of this system, a state of higher and more substantial prosperity than she has known for a century : her po- litical state I forbear to discuss, as unconnected with the pre- sent question. The situation of the united states, alas ! affords a complete contrast to that of France, and a most irrefragable illustra- tion of this theory. For nearly twenty years, while millions of armed men were devastating large portions of Europe, we enjoyed the benefits of neutral commerce, to an extent scarcely * The contribution was fixed at 700,000,000 livres, equalto about 130,000,000 of dollars— but a part of it, I believe, was remitted. planter's friend. 501 ever, perhaps never enjoyed by any other nation. This was succeeded by a short war, of two years and a half, in which to use the words of Mr. Wyndham, '•'•we xvere hardly icratched" — and which, in fact, rather advanced than retrograded our pros- perity. It was closed under the most favourable auspices, and everv man, woman, and child, able and willing to work, was use- fully employed for individual advantage, and steadily adding to the wealth and resources of the nation. The voice of peace, and happiness, and joy, was heard throughout the land. But soon the glorious prospect was changed. The country was deluged with cheap goods from abroad — great numbers of our citizens were devoted to idleness and penury — establishments, on which millions had been expended — which gave employment to thou- sands, and wrought up, during the war, more than two-thirds of the average annual export of cotton wool from the united states to all Europe, from the year 1800 to 1814*= — were closed, and their proprietors consigned to bankruptcy — a large portion of the energy and enterprize of the nation was paraliztd — gloom and distress pervaded the land — the circulating medium vanished to pay for luxuries we did not want, and for necessaries which we might have produced at home. For a time the farmers es- caped the pernicious consequences of the system — the planters still longer. But it has at length reached both classes — and a painful state of things has been produced, thus justly depicted by the secretary of the treasury, and by a committee of the house of representatives of the united states : — The former declares, • As this assertion will excite sui-prise, I annex a statement of our exports of cotton, with the custom house valuation, from 1800 to 1814, from Pitkin's Sta- tistical View, page 133. 1800 lbs. 17,789,803 §3,556,000 1 20,911,201 4,182,000 2 27,501,<>75 5,250,000 3 42,105,623 7,92U,U00 4 38,118,041 7,650,000 5 38,370,000 9,445,000 6 35,657,465 8,332,J00 7 63,944,459 14,'i32,j00 8 10,630,000 2,22l,J00 9 50,980,255 8,515,000 10 93,261,462 15,5u«,000 11 62,058,236 9,652,000 12 28,887,377 3,080,000' 13 19,110,016 2,324,000 14 17,729,007 2,683,000 567,054,020 104,55u,o00 Average lbs. 37,803,601 §6,970,333 The quantity consumed in the united states in 1815, was, 27,000,000 lbs. ; of course above two-thirds of tliis average. 502 THE Parmer's and that '■^few instances have occurred^ of a distress so severe as that *' which has bee?i exhibited in the united states'''' — and the latter, that " the imposition of an excise at this time of extreme " DISTRESS, -would he unwise^ and is not demanded by the state '' of the public treasury. If imposed^ it -would be difficult to col- " lect ; and^ if collected, it would^ in some parts of the uftzon, be ** in paper little available "* These statements are recent. The first was made in February, 1820 ; and the second, a short time previous to the close of the last session of congress. These strong facts can never be set aside by abstract theories, however plausible, and however supported by names of great celebrity. As truth requires no adventitious support, to estab- lish its authority : so error cannot be converted into truth, nojr folly into wisdom, by the glare of exalted names. Having in my former numbers discussed the question of the causes of the present situation of the planters, I now, according to my promise, shall attempt to prove that it was in the power of Congress to apply a preventive to the depression of the prices of Cotton, in 181 9, and a palliative in 1820; and, after its oc- currence, to alleviate the evils it produced. To prove what might have been done in 1818, or what may be done now, it is necessary to display what has been done already : and fortunately such progress was made in the manufacture of cotton goods, during the two years and a half of war, the only period smce the commencement of our government in which it had a fair chance of supplying the domestic market, as to leave no doubt of the capacity of the country to consume so much of the raw material as would prevent that glut in Europe, which produced depression and all its ruinous consequences. The duty imposed on cotton and woollen goods, in ) 78V, was only, five percent. It was raised afterwards to 7h-,to 10, to 12i and at a late period to i5, which was the rate at the commence- ment of the war, when it was raised to 25. The great advantages the British manufacturers possessed, of immense capitals, machinery of the most perfect kind, the entire supply of the home market, the profits of which enabled them to make sacrifices on the goods thev sent abroad, discourag- ed our citizens generally from any serious effort at the esta- blishment of the cotton manufacture in the united states, on a large or extensive scale, for the first twenty years of the opera- tions of our government. The few that were made, proved ruinous for the undertakers, and prevented others from engag- * As numbers of our citizens deny the existence of distress at present, I quote the precise words of two public documents, of respectable authority, on the sub- ject. Were it necessary, others of equal weight might be added, from messages of governors, and reports of state legislatures. planter's friend. 503 ing in the same speculations ; for truly did Alexander Hamilton pronounce, that "the undertakers of new manufactures have to *' contend, not only with the natural disadvantages of new un- " dertakings, but with the gratuities and remunerations which *' other governments bestow. To be enabled to contend xvith " success, it is evident that the interference and aid of their go- " vernment are indispensible.'''' Therefore, notwithstanding the immense exportation of the raw material, amounting in 12 years, from 1800 to 1811 inclu- sive to 500,228,152 lbs.* of which we received back a great por- tion, manufactured, at nearly fivefold its original value,f the consumption of that raw material in manufacturing establish- ments in the united states was In 1800, only 500 bales or 150,000 lbs.:j: of cotton. 1805, 1000 300,000 The restrictive system, called into existence by the depreda- tions of the belligerents, gave a considerable spring to the man- ufacture, so that in 1810 the consumption was extended to 10,000 bales, or 3,000,000 lbs.$ From this time till the declaration of war in June, 1812, it made considerable progress — but there are no means of ascertaining its extent. The war, in a great measure, cut off our foreign supplies of cotton and other goods, which of course produced such a scarcity and rise of their price, as held out very great inducements to our enterpi-izing citizens, to vest in manufactories the immense superfluous capital then divested by the war of employment in commerce. The progress in the cotton branch, was such as might have been expected from the boundless supply of the raw material. Great numbers of exten- sive establishments rapidly arose in every quarter of the middle and eastern states, which supplied the great mass of the con- sumption of the country. By a statement presented to Congress by a respectable body of cotton manufacturers, and incorporated into the celebrated Report of the commitee on commerce and manufactures already quoted, it appears that in 1815, the follow- ing was the state of the cotton manufacture throughout the unit- ed states. • Pitkin, pag-e 133. •|- This is the increase the i-aw material receives by manufacture. Colquhoun, in his View of the wealth, power and resources of Great Britain, page 91, gives this statement of the cotton manufacture of that country. Export and consumption, /. 29,000,' '00 Raw material, 6,0l/U,000 Sterling /. 23,0v;0,.00 A clear advantage to that nation of above §100,000,000. tKcport of the Committee of Congress, on commerce and manufactures, 1816. ^Idom. 504 THE farmer's and Capital invested, 5S40,GO:),OOl> Males employed from 17 upwards, 10,000 Below seventeen, 24,000 Women and female children, 66,000 100,000 Cotton wool manufactured, bales 90,000 Equal to, lbs. 27,000,000 Number of yards of cotton, 81,000,000 Cost [supposed to be the current price] per yard, 30 cents, ^24,300,000 Of this statement, I believe, the accuracy was never ques- tioned until last fall, when a writer in the National Gazette, under the signature of SAY, declared it incorrect, without ad- ducing any proof, arid resting his dictum altogether on what he pronounces as the utter improbability of the statement. Not knowing on what data the estimate of the consumption was predicated, I am unable to substantiate it by reference to authorities. But I hope to adduce such a number of collateral and cogent facts, as will satisfy every man who bestows that de- gree of consideration on them, which the importance of the question requires, that SAY did not sufficiently investigate the evidence, of which the case was susceptible, previous to his un- qualified rejection of the statement. A comparison of the quantity of cotton exported, and of cot- ton manufactures imported, previous to and during the war, will shed considerable light upon the subject. The export of cotton in 1809, was lbs. 50,980,255 1810, 93,261,462 1811, 62,058,236 206,299,953* Export in 1812, lbs. 28,887,377 1815, 19,110,016 1814, 17,729,007 lbs. 65,726,4001 The difference between the two periods is above 140,000,00Q of pounds, which, at the first blush, might appear to be the quantity manufactured in the country during the war. But there are two important deductions to be made from this balance ; first, the diminution of cultivation during that period, in conse- quence of the want of opportunity of transporting the article to^ * Pitkin, 133. flbid. planter's friend. ^05 market from New Orleans and other southern ports — and se- condly, the quantity stored there till the war was over. I will allow for diminution of culture, lbs. 35,00 >,000 Quantit}' stored, - . - - 30,000,000 65,000,000 This, deducted from the above amount of 140,000 000 Leaves a balance of 75,000,000 or 25,000,000 lbs. per annum, for the domestic consumption during the war. To this let us add the previous domestic con- sumption, which, by the statement of the committee of com- merce and manufactures, appears, as we have seen, to have been, in 1810, about 3,000,000 of pounds. The aggregate exceeds the statement in the report of the committee. That I have made a greater allowance for stored cotton than was necessary, is obvious from the export of the three years subsequent to the war, in the first of which all the old stock must have been cleared out. 1815, lbs. 82,998,747 1816, 81,947,116 1817, 85,649,328 lbs. 250,595,l9lf This exceeds the export of the three years previous to the war, only 44,000,000 lbs. — although the cultivation must have been very considerably extended during the three years, 1815, 16 and 17 ; of course the admission of 30,000,000 of pounds re- maining of the crops of 1812-13-14, 1 repeat, is too great. I trust that SAY himself will have the candor to admit that these tables are abundantly sufficient to decide the question. But its magnitude induces me " to make assurance doubly sure,'^ and adduce other corroborations of the correctness of the state- ment of the committee. For this purpose I proceed to a comparison of the amount of cotton goods imported previous to, and during the war, which will throw considerable additional light on the subject. The importation of articles subject to 15 per cent, duty, which embraced cotton and woollen goods, and a very few others, m 1804, 5, and 6, was as follows : — t Pitkin, 133. 64 '^06 THE farmer's ANB In American vessels. In Foreign vessels, 1804, S SO,285,26r $ 1,615,861 1805, 37,137,598 2,046,451 1806, 43,115,367 1,434,756 110,538,232 5,097,068 110,538,232 *1 15,635,300 Deduct tor re-exportation - r r - 3,663,402 111,971,898 Deduct also 10 per cent, for other articles subject to the same duty — - - 11,197,189 Net 100,774,709 It njay be assumed that one half was cotton goods equal to - - - r - 50,387,354 Average 16,795,778 Our population increased from 1806 to 1814,f about 40 per cent, and of course our con- sumption increased in the same ratio, equal to - - - - - - 6,718,311 23,514,089 The prices of goods, moreover, were at least, one third higher in 1814 than in 1806. Therefore I add r - - - - - 7,838,029 This makes a total of 31,352,118 This, I presume, will be freely admitted as the probable value of the cotton goods consumed in 1814 in the united states at the then prices. Deducting $1 ,421 ,629, being one half of the whole amount of the goods imported that year subject to 25 per cent, duty (wl ich embraced cottons and woollens) it leaves nearly ^30,000,000, or less than four dollars per head, for the whole population, to be supplied by the domestic cotton manufacture, which considerably exceeds the amount stated in the report of the committee of commerce and manufactures. * Seybert, 164. f I prefer predicating the calculation on the year 1814, to 1815, as the importa- tion of the former year was of httle importance, and left all the void to be filled by the domestic manufacture : whereas the importations of the last six months of 1815, were immense. There was, however, little diminution in the manufacture in 1815 : the shock it received began early in 1816. planter's friend. aOr But this is by nO means the whole of the evidence. An im- portant document exists, of no ordinary character and authority, of which I submit an abstract i — In 1819, in consequence of the depression of the cotton manu- facture in Rhode Island, an investigation was instituted into its situation in 1815, in order to ascertain by comparison the extent of the declension, by which it appeared that there had been in the latter year, within 30 miles of Providence, Cotton manufactories, 140 Containing, in actual operation, spindles, 130,000 Using annually, bales of cotton, 29,000 Equal to lbs. 8,700,000 Producing yards of cotton goods, 27,840,000 The weaving of which, at 8 cents per yard, cost, ^2,227,200 Total value of the cloth, " 6,000,000 Persons steadily employed, 26,000 The sphere of inquiry embraced in the statement presented to congress, was so wide, and the difficulty of procuring infor- mation from such various quarters, so great, that however up- right, intelligent, and industrious, the inquirers were, the result of the investigation might be considerably erroneous. But in the case of Rhode Island, if the details be incorrect, it must have arisen from downright fraud and imposture. The sphere of inquiry was so limited — the facts of such public notoriety — and misstatements so open to immediate detection, as would de- ter the parties from imposition, even if uninfluenced by honour and principle. The investigation was, moreover, conducted under the inspection of the late Mr. Burral, a respectable mem- ber of the Senate of the U. S. and other gentlemen, whose cha- racters and standing in society, afforded full guarantee for the fairness and candour of their statement, which is, therefore, as well entitled to credit as an^/ other public document whatever. if it is to be rejected without conclusive and overwhelming evi- dence, and even without a plausible appearance of error, to what document shall we give credence ? This being premised, let us see how it bears on this impor- tant topic. S A Y asserts, that there were not 60,000 persons employed in these manufactures,* that is, I prestvme, those of cotton ; whereas we find 26,000 employed in a small corner of * Ihave had considerable difficulty to ascertainthe precise meaning' of .S'a_(/, and whether he did not extend his denial to both woollen and cotton manufactures ; as he had been previously discussing tlie subject of both. H s words are — " I dc not believe the persons employed in these maintfacturcs amounted to 6J,v;' -O." But the construction of the different sentences appears to warrant the limitation to tl^/i cotton branch. If otherwise, it appears most extravagantly erroneous. 508 THE farmer's and the country. He scouts the idea of 90,000, bales of cotton being consumed in the whole of the united states, whereas there were 29,000 bales consumed in that limited space. Surely, then, he must be in error — surely he did not duly consider the subject — and as surely there cannot be the shadow of a doubt that the manufacturers in the rest of the union, consumed the remaining 61,000 bales — or that the number of persons stated to have been employed is within due bounds. I might here close the subject. But at the hazard of being prolix, I subjoin a few strong facts. The cotton factories in the single county of Oneida, N. Y. consumed in 1815, no less than 400,000 lbs. of cotton, equal to about 1300 bales.* Those in Connecticut, contain 50,000 spindles, and are capa- ble, if all were employed, as by due encouragement they might be, of manufacturing 9,960,000 yards of cloth annually, and em- ploying 10,0^^0 persons, exclusive of weavers .f The Eagle factory in Trenton wove in 1815, 10,000 yards per week, equal to 520,000 per annum. ij^ The Waltham factory consumed in 1819, about 1400 bales of cotton — produced 1,250,000 yards of cloth — and employed about 300 persons. It was in operation in 1815, but on what scale I cannot ascertain ; probably, however, not near so great. In Philadelphia and its vicinity, in 1815, there were 2325 per- sons employed in the manufacture of cotton. Supposing 900 to have been weavers, and to have produced 10 yards per day, it amounted to 2,673.000 yards per annum — and, at three yards to the pound, was equal to 2,408 bales. When these facts are duly considered — and further, that a large portion of the paper mills throughout the middle states were at that period converted to the purpose of making cotton cloth — that establishments of this kind were, as I have said, spread over the middle and eastern states, in every direction, and even in some of the southern states, as far as North Caro- lina, no doubt can be entertained of the correctness of the state- ment of the committee of commerce and manufactures. The manufacture did not, as I have already observed, receive any material check in 1815, notwithstanding the flood of goods poured into the country during the last half of that year. These were generally sold very high, owing to the existence of the double duties, and the general rage for opening stores and pur- chasing goods. The repeal of the double duties in June, 1816, and the daily increasing supplies from Europe, arrested the sales of the domestic goods in that year, and produced that scene of distress of which I have given a slight sketch at^ the commencement of this essay.. * Address of the National Institution of New York. t Idem. t Idem. planter's rRlENI>, 509^ Among the pernicious consequences of this state of things, was a diminution of the domestic consumption of cotton, pro- bably to the amount of half — at least two-fifths — of the quantity- used before. This diminution continued for the two succeeding years, and was probably at least 10,000,000 pounds per an- num ; whereas, had the manufacture been duly fostered, it would certainly have increased 5,000,000. This will be admit- ted by those who consider that the business was in its infancy — had grown in five years from a consumption of 10,000 bales to 90,000 — that it had as yet been chiefly confined to coarse goods — and that even of those various kinds were not as yet manufactured, but would have been produced in great abundance with proper encouragement. In order to ascertain the effect the abstraction of 15,000,000 pounds of our cotton from the British market would have pro- duced, in 1818, it is necessary to take into view the amount of this cotton imported into Great Britain, and consumed, in that year. Imported, bales, 219,950 Consumed, 160,870 'Surplus, bales, 59,080 Equal to ^ lbs. 17,724,000* It is therefore, I think, a rational conclusion, that had our manufactures been in the prosperous condition in which a due degree of patronage would have placed them, such an extra portion of the raw material would have been consumed at home in 1818, as would have reduced the exportation to Great Britain to a level with the consumption in that country, and pre- vented the depression of price which produced so much ruin to the merchants, and diminution of income to the planters. It may be asked what would be a " due degree of patronage ?"' I will for a moment suppose that the duty on cotton goods had been raised in 1818, to 33 per cent, (the duty proposed in 1816, by Mr. Dallas) — and that all goods below 30 cents per yard, were subject to duty as if they cost 30. Were this the case, the domestic consumption would doubtless not only be raised to what it was in 1815, viz. 90,000 bales — but would be in- creased so far beyond that quantity as to consume the whole extra portion exported that year to Great Britain. I now proceed to consider the case of last year, in order to ascertain whether the reduction which then took place, might not have been wholly or at least partly obviated. * Mauiy & Latham's Price Current, Liverpool, January 30, 1821. 510 THE farmer's and PLANTER's FRIEND. The importation of united states cotton into Great Britain ii 1820, was greatly increased beyond any former year, being bales, 301,928 Whereas in 1819, it was only 204,631 An increase of 97,297* However the consumption had also greatly increased, being in 1820, 246,900 Whereas it was in 1819, only 209,000 Increase 37,900* Thus the difference of increase between the importation and consumption was only, bales 59,397 Equal to 17,819,100 lbs. I have already stated that a variety of circumstances com- bined to increase the domestic consumption last year, among which the most powerful were a deficiency of importfj : ma- nufactures, owing to the general pressure of the times, with the embarrassments of the importers — and the superiority and cheapness of the domestic articles. Still the manufacture was not carried even last year to any thing like the extent of which it is susceptible. Had it been in this situation, it would have probably consumed the surplus of our exportation, as it might have done in 1818, and thus prevented this recent depre- ciation. It would, however, be idle to suppose that any encourage- ment that can be given to the domestic cotton manufacture would keep pace with such a rapid increase of the raw mate- rials, as 39,000,000 lbs. per annum, in this country,f and such an increase as is likely to take place in South America. In this state of things, the only radical remedy is such a general en- couragement of domestic manufactures, as will restore the de- ranged equilibrium of the different pursuits of society, and not onlv prevent the manufacturing class from crowding on the agriculturists, who are already too numerous in propor- tion to our population, but induce some of the former who have been driven to enter the lists with the latter, to return to their old ranks, and thus (to confine myself for the present, * Maury & Latham's Liferpool Price Current, January 20, 1821. ■\ The export of 1819, was 87,997,045 lbs. ; whereas it was in 1820, no less than 127,860,152 lbs. See Reports of the Secretary of the Treasury. STRICTURES. ' 511 to the culture of cotton,) diminish the production and increase the domestic consumption of that most important raw mate- rial. The same reasoning will apply to flax, hemp, leather, timber, and the other numerous articles for which the manu- facturers would by due encouragement furnish a most valua- ble market to their agricultural fellow citizens. GUATIMOZIN. April 24, 182t. P. S. The duties mentioned in this essay are those stated in the tariff — to which, in every case, ten per cent, must be ad- ded. Strictures on Mr. Cambreleng's Work^ entitled^ " An examination of the New Tariff. ^^ NO. I. About the close of the last session of Congress, Mr. Cambre- leng, afi*-espectable citizen of New York, who has been since elected a member of that honourable body, published " An Ex- amination of the New Tariff^"* of which the object is to display, in the most formidable and terrific colours, the oppressive and ruinous consequences of the adoption of that important measure. According to this gentleman, it would infallibly destroy the com- merce of the country — degrade, debase, and plunder the agri- culturists — erect the manufacturers into a lordly aristocracy, to the utter prostration of the democracy of the nation — and visit us with all the miseries suffered by the English nation — miseries which, according to Mr. C. arise from what he stigmatizes as the odious system of " restriction ;" of which system, it is to be observed, the grand and paramount object is to foster domestic industry, by preventing the interference of foreign manufactures and foreign grain, with those of that nation ! ! ! In one word, all the most tremendous evils that ever issued from Pandora's Box, are to be disgorged on the land, should this deleterious ta- riff be adopted, Mr. Cambreleng's work has shared the fate of a thousand others, which, in different nations and at different periods, have been written on topics of deep interest : such topics universally excite diversity of sentiment, and strong party feeling. Its de- fects have been overlooked by the opposers of the legislative pro- tection of domestic manufactures, and its merits by those of opposite sentiments. By the former it has been and is extra- 512 STRICTURES ON THE vagantly eulogised. They regard it as the Alpha and Omega of political economy — as forever settling this important ques- tion, without appeal — and as overwhelming, not only the report of Mr. Baldwin, and the addresses of the Society for the promo- tion of National Industry, but even the celebrated report of Alexander Hamilton This great statesman, according to Mr. Cambreleng, must have been a very shallow political economist ; as Mr. C. confidently believes be has triumphantly established the futility of almost every part of the elaborate and profound system advocated my Mr. H. with all the powers of mind he was, by friends and enemies, allowed to possess. — There is scarcely a point in his report unassailed by Mr. C. I shall remark on a variety of his criticisms in the course of these strictures ; but, for the present, shall confine myself to a single one. The culture of cotton had just commenced in the united states, and the result of the experiment being then in a great degree uncertain, Mr. Hamilton expressed an opinion, that " the extensive culture of cotton could perhaps hardly be expect- ed, but from the previous establishment of the domestic manufac- ture of the article." On this very natural position. Mr. C. triumphantly a.ks, " when a man of acknowledged abilities spe- *' culates on our industry with so little success, what conjidence *' can Tve repose in the system by which his measures wefe regu- ^'' lated?'^''^ This sweeping denunciatory query is, however, kind- ly soltened down by an apology for the Secretary's ignorance. " Mr. Hamilton wanted that familiar and minute knowledge of " the operations of money, credit and trade, which no man can " have without much practical experience, or a long life devoted " to this particular study. "f On the other hand, the friends of protectmg duties almost universally regard " the Examination'^ as an inferior and flimsy performance. They assert that its postulata are unsound — that in most instances it begs the question — that it ascribes ef- fects to causes with which they have no connection — that a large portion of its reasoning is founded on a most extravagant error, which vitiates and overturns the most vital part of the work — that in the attempt to account for the distresses of Eng- land, it wholly overlooks her wild and wasteful wars, on which have been prodigally lavished, within the last half century, at least ^8, 000,000,000 — her oppressive taxes, the result of that enormous expenditure — her grinding tythes, whereby the tenth part of the produce of the soil is devoted to the support of a lordly hierarchy — in a word, overlooking all the variety of pow- erful causes of her distresses, it ascribes them wholly to that system whereby she has been enabled to lay the whole world * Examination of the Tariff. f Idem p. 24, EXAMINATION OF THE TARIF. 513 under contribution by the products of her industry, to subsidize half the monarchs of Europe, and to decide the destinies of that quarter of the globe. Submitted as " the Examination" has been to the public, it has become a fair subject of discussion, which, if it be sound and correct, cannot fail to enhance its usefulness, by the diffu- sion of its doctrines more fully: butif fallacious and pernicious, its errors ought to be clearly pointed out and exposed, in order to guard against the ruinous consequences which never fail to result from errors on the important subject Mr, Cambre- leng has undertaken to investigate. Persuaded that it contains a variety of positions and assump- tions destitute of foundation, and leading to very pernicious re- sults, I solicit the public attention to an examination of them. It is not, however, my intention to enter into a regular review of its contents. This would require more time than I can spare, and more attention than the public would bestow on the subject — and also a volume as large as Mr. C's book. I shall confine myself to a few leading points, passing over those of minor importance. NECKER. Julij 10, 1821. NO. ir. AS facts are the basis on which all reasonings on political economy ought to be predicated, I shall only undertake the examination of some of the leading ones adduced by Mr. Canv- breleng, passing by most of his abstract reasonings under the idea that if the basis can be fairly undermined, the superstruc- ture of argument will of course crumble into^ruins. I do not, however, intend to travel with him into the interior of Russia, to ascertain the cost of a Berkovitz of hemp at Toola, Calooga, or Oral to the south of Moscow — nor to the mountains of Bohemia, to investigate the cost of the manufac- ture of common glass — because I have no means — nor is there one person in 10,000 in this country who has — to test these state- ments. I shall confine myself in a great measure to investigate as- sumed facts on this side of the Atlantic, which may be at once submitted to the talisman of truth ; as, the criteria being within our grasp, if correct, they may be fully verified — or if otherwise, easily disproved. Mr, Cambreleng, in the threshold of his work, passes an encomium on the Congress of 1790, for their fairness and im- partiality — for the " equal protection" which they afforded to 65 514 ' STRICTURES ON THE manufactures, in common with every other " branch of indus- try"— " Circumstances have conspired to augment our duties on im- " portations higher than ever was contemplated by the Congress- " of 1 / 90, the members of which had all laboured to bestow on *' this nation the best of governments — and who equally protect- " ed every branch of industry ^""^ It is difficult to conceive of a greater error than is conveyed in the last sentence of this paragraph. I hope to make it appear that it is destitute of even the shadow of foundation. I am rejoiced that Mr. Cambreleng hazarded this most ex- traordinary assertion — as it affords a legitimate opportunity of developing the withering system pursued towards manufac- tures at the commencement of our government— and the very partial and inequitable scale on which '•'• protection" was dealt out to the diffei-ent "• branches of industry." There are three great interests in the united states, the agri- cultural, manufacturing, and commercial— -the two first occupied in producing food, clothing, and other necessaries, as well as conveniences and luxuries — the third, in conveyance of produc- tions to consumers. It may — indeed it must — be assumed, that when Mr. Cam- breling clearly and explicitly declares, that " the congress of 1790, eaually protected every branch of industry ^"^ he means that they guarded them by duties from the interference of foreign rivalship. This was the only protection that body could af- ford — and this is the only meaning of the words. Any other construction would be nonsense, and is therefore inadmissible. Let us examine how far he is borne out, in his assertion by the fact. It is necessary, however, in order to a correct decision upon the subject, to offer a few prefatory observations explanatory of the nature of "• protection of every branch of industry." No subject can be fairly discussed, without a correct understanding of the meaning of its terms. To the merest novice in trade, commerce, and political eco- nomy, it must be perfectly obvious, that articles of great bulk, and little value, may, when imported, be subject to such a hea- vy per centage of freight, as as to afford adequate protection to the domestic manufacture without any duty. It may be suffi- cient to cite the case of common chairs, tables.; and other arti- cles of furniture, the freight of which from Europe would pro- bably be 50 per cent. I'his view may be extended even to ar- ticles of superior value, but of great bulk, of which the freight would be 10, 20, or 30 per cent — as cheap pleasure carriages and. various other articles. * Examination, page 12. EXAMINATION OF THE TARIFt. 515 On the other hand, articles of small bulk and great value, pay a very light per centage of freight, which affords little or no prnttction to the domestic manufacturer. For instance, silks, gauzes, chintzes, watches, jewelry, &c. To exemplify this doctrine. It will, I trust, be admitted, that the manufacturer of pleasure carriages, which would pay a freight suppose of 20 per cent, would be better " protected" by a duty of two per cent, making an aggregate burden on the foreign article of 22, than the manufacturer of chintzes, which pay but one or two per cent, freight, would be by a duty of 12 per cent, which would be an aggregate burden of only 14. Again. Articles of limited production do not require an equal degree of protection with those of which the production is in some measure boundless. From these simple and clear premises, it follows that agricul- tural articles, as hemp, flax, cotton, tobacco, potatoes, &c. being bulky in proportion to their value, as well as of limited produc- tion, require, to afford them adequate protection, far less duty than articles produced by machinery ; as, for instance, cotton goods, of which the manufacture may be carried to almost any extent. Great Britain, with two or three years of preparation to provide an adequate increase of the raw material, might sup- ply half the globe with this article. Whereas no country could ever export, nor did any country, even in time of famine, ever import one fifth part of the productions of the earth neces- sary for its consumption. The year 1 799, was a year of great scarcity of grain in Great Britain, approaching to famine, which was warded off solely by the extraordinary vigilance and exertions of the government. The importation of bread stuffs was accordingly unprecedentedly large. Yet it was not one tenth part of the consumption — and would not suffice to support the population for five weeks. The average of the animal and vegetable food, exported from the united states, for eighteen years, from 1803 to 1820 inclusive,* was only 15,000,000 of dollars — but the consumption, at one dollar per week, for each person, was ^364,000,000, estimating the average population for the whole period at 7,000,000 : Thus the export was little more than four per cent, of the consump- tion of the nation. If, therefore, the duties laid on agricultural articles, by " the Congress of 1 790," which, according to Mr. Cambreleng, '' equal- ly protected every braneh of Industry ^''^ were merely as high as those on manufactured articles produced by machinery, even then Mr. Cambreleng's position is incorrect ; as in that case *' every branch of industry" would not be " equally protected." But should it appear, as I trust it will, that the per centage of '* Seybeil's Stati"st\cs, pap^c 147. S16 STRICTURES ON THE the duties on all such agricultural articles as are usually import- ed, was double, treble, or quadruple that of those imposed on manufactured ones, then his position is the reverse of truth ; and it will follow that the Congress, which he has so highly eulogiz- ed, manifested gross partiality in their own favour — and disre- gard of the interests and equal claims of their manufacturing fellow-citizens. In truth, that Congress had the candour, at an early period, to abandon the idea of protecting majiufactures, as will appear from the following facts, for which I am indebted to Mr. Cam- breleng. The preamble to the first tariff, enacted July 20, 1789, ran — - " Whereas it is necessary for the support of government, for " the discharge of the debts of the united states, and the encou- " ragement and protection of manufactures^ that duties be laid on " goods, wares, and merchandize imported." The preamble of the second tariff, enacted Aug. 10, 1790 — after recapitulating the former one, as is usual in such cases — concludes thus — " And whereas the support of government and the discharge of " said debts^ render it necessary to increase the said duties." For this procedure Mr. Cambreleng accounts thus : " From the " omission to mention manufactures in this law repealing that " of 1789, it is evident that the Congress of 1790^ intended when " these duties should be no longer required for the debt or expen- *' ses of government^ that the manufacturers should not have a " right to insist on their being continued.''''* It is for Mr. Cam- breleng to reconcile this fact, with the " equal protection," for which he has given that Congress such large credit, and with the impartiality which ought to characterise the legislature of a free people. NECKER. NO. III. Hoping the reader will bear steadily in mind the postulata in my last number, respecting the very great difference of protec- tion, in regard to freight, between articles of which the bulk is great in proportion to their value, as hemp, coals, potatoes, &c. — and those which embrace great value in small compass, as silks, gauzes, jewelry^ Sec. I proceed to develop the system pursued in the two tariffs enacted by the congress of 1789-90, which, according to Mr. Cambreleng, afforded " eyMa/j^^o?ec?ic;2 to every branch of industry ^ * Examination, page 31. EXAMINATION Ot THE TARIFF. 517 The duty imposed in 1789 on the important manufactures of ^axy cotton, hemp, iron, steel, brass, lead, copper, china, delff, pot- tery, and xvood^ wa.s only five per cent.! ! There were a few ar- ticles subject to 7^, to 10, to 12§,and pleasure carriages to 15. But on the great mass of manufactures, embracing nearly fifteen sixteenths of the whole, there was imposed the minimum of duty, 5 per cent. To exhibit the proportion which the articles paying the vari- ous rates of duty bore to each other, I annex a statement of the amount of the merchandize subject to ad valorem duties, import- ed in 1789, and 1790. 1789 1790 At 5 percent. 87,136,578 !gl4,605,713 7i , 520,182 1,067,143 10 305,248 699,149 12i 5 15 2,700 4,876 S7,964,713 816,376,881* Thus the manufacturers of the united states, who had borne their full share of the " heat and burden" of the revolutionary war, and almost universally advocated with zeal and ardour, the adoption of the Federal Constitution, received, at the outset of the government, from their fellow citizens in congress, the " equal protection,''^ forsooth, of a paltry duty of ^ve per cent, to guard them against the overwhelming competition of foreign ri- vals, who possessed immense capitals, improved machinery, and skill of the first order ; at home enjoyed exclusively the do- mestic market ; had our market for their surplusses ; and were moreover shielded by the powerful protection of their respective governments ! Never was there a more unequal conflict. No man of candour can or will pretend that these duties could operate as " protection." To suppose that cotton or wool- len manufacturers in the united states, without machinery and with slender capital, skill, and experience, with Mr, Cambrel- ings " equal protection''^ of five per cent, duty, and one or two per cent, freight, could enter into successful competition with the manufacturers of Europe, would be as absurd as to suppose that an immature stripling could enter the lists with, and overcome, a full-grown man in possession of all his physical pov/ers. The consequences of this miserable system were such as might have been expected. Various attempts were made at dif- *Seybert's Statistics, page 15R. -^ $18 STRICTURES ON THE ferent times, at Patterson and elsewhere^ to establish the wool-' len and cotton manufactures by native citizens, and by emi- grants possessed of the necessary skill and moderate capitals. They almost universally failed. Of this there needs no farther proof, so far as respects the woollen manufacture, than the well- known lamentable and disgraceful fact, that previous to the commencement of the late war, that " branch of industry'''' was in so abject a state, that our government found it scarcely possible to furnish a quantity of blankets to the Indians, to the amount of a few thousand dollars ; so that the Secretary at war thought it necessary to apply to congress to repeal the non intercourse act, in order to admit a supply from Great Britain ! No lan- guage could do justice to the censure due to the mistaken policy which produced such a deplorable state of things, after the ope- ration of the most perfect form of government the world ever saw, for twenty-three years, during Avhich time we lavished probably 8 or 10,000,000 of dollars annually for woollen goods,^ two-thirds of which we could ourselves have furnished. The situation of the cotton branch was nearly as prostrate. The whole amount of cotton used in manufacturing establish- ments in 1805, after the government had been 16 years in operation, was only 1000 bales,* or 300,000 lbs. although we ex- ported, in that and the five preceding years, above 180,000,000 of lbs. Cotton exported from the united states from 1800 to 1805, inclu" sively. 1800 lbs. 17,789,803 1801 20,911,201 1802 27,501,075 1803 41,106,623 1804 38,118,041 1805 38,390,087 Total in 6 years, lbs. 183,815,830 Average, 30.635,971 1 For every dollar we received for this raw material, we paid on the average nearly five, for such part as we received back in a manufactured state. | * Report of the Committee of Congi'ess on Commerce and Manufactures, 1816. •j" Pitkin's Tables, pages 132, 133. :j: This is the proportion between the raw material and the manufactui-ed ar- ticle, stated by Colquhoun in his " Wealth, Power and Resources of Great Bri- tain," page 91. " The export and consumption of tliis article may amount to 29,0U0,000Z. frqm Avhicji is to be deducted 6,000,000/. for the raw material, leav- ing 23,000,000/'." EXAMINATION OF THE TARIF. 519 It is very true, Mr. Cambreleng indulges in glowing descrip- tions of the wonderful prosperity of this manufacture, " under our old and moderate duties^ long before the war""* In due sea- son I hope that " a plain tale -will put down''' this most extraor- dinary assumption, and prove that it is " like the baseless fa- bric of a vision," which " leaves not a trace behind." I request the indulgence and patience of the reader till the appearance of my fifth number, which shall be devoted to the discussion of this particular point. Having displayed the '•'• protections^'' which, according to Mr. C. was afforded to manufactures by what he styles ••' the vene- rable system of 1 790,"f it remains now to investigate what '■'■ pro- tection'''' the agriculturists, who were a decisive majority" in Con- gress, probably nine-tenths, afforded themselves. The only articles of which the importation affected the inte- rests of the agriculturists, and which were subject to specific du- ties, by the tariffs of 1789 and i790, were cotton — hemp to- bacco — snuff — cheese — indigo — malt — sugar — and spirits. All the other articles, not being enumerated, were subject to five per cent. duty. Thus cambrics Jjroadcloths^ linens ^s'llks^ ^c. pa'idonly the same duty as potatoes^ or onions ! ! On the above articles, the following duties were imposed in 1789. Hemp per cwt. cents 60 Cotton per lb. 3 equal to 12 per cent, 11 Indigo per lb. 16 Cheese per lb. 4 14 57 Manufactured tobacco per lb. 6 66 Snuff per lb. 10 40 Malt per bushel 10 17 Muscovado sugar per lb. 1 Distilled spirits other than Ja- 20 maica proof, per gallon 8 20 Total for the nine articles 257 \ Average 28^ Thus the average of the duties imposed for the protection of agriculture, was nearly 29 per cent : that is, 500 per cent. * Examination. -j- Idem, page 116. \ Let it be noticed, that I do not pretend that these duties are all exact to a cent. I have made every exertion, but found it very difficult, to ascei-tain the prices of these several articles in the year 1789 : some erroi-s may therefore have crept in. But they are inconsiderable, and cannot possibly affect the general result materially. The per centage of cotton, indigo, cheese, manufactured t*. barco, sugar, and distilled spirits, is, I believe, literally cori'ect. 520 StRICTURES OM THE more than was imposed on the great mass of manufactured articles, by that '' venerable system^'* which is the object of Mr. Cambreleng's admiration. And yet there was then, as now, a constant clamour against " manufacturing monopolies," " undue protection" and " taxing the many for the beneft of the fewr The protection of indigo, by a duty of 14 per cent, was not deemed sufficient. In 1 790, it was raised to 25 cents per lb. which was about 22 per cent. Hemp, however, was in the same year reduced to 54 cents per cwt. which was nearly 1 1 per cent. Some very witty gentlemen have made themselves very merry at the " ^m//," as they call it, of charging the duties on manufactured tobacco and on snuiF to the account of the agri- culturists ; there being, forsooth, no snuif raised by the farmers, and both articles being manufactures ! ! This is most pitiful so- phistry. These extravagant duties were not imposed for the protection of the manufacturers of those articles, but to secure to the planters the exclusive market for their tobacco, by alto- gether shutting out supplies from abroad. Let it be distinctly observed, that this view of the case was clearly expressed in Congress. Mr. Sherman, a member from Connecticut, in a spirit of kindness and liberality towards the tobacco planters, moved for six cents per lb. on manufactured tobacco, " as he thought the duty ought to amount to a prohibition^^ Can there be the shadow of any other reason assigned, why the " manufacturers" of tobacco should be protected by a duty of sixtv-six per cent, when the manufacturers of cottons and woollens could not procure any higher duty than 5 per cent ? It would be waste of words and mockery of the reader, to use any arguments to enforce so plain a proposition. In this view of the subject, it does not appear surprising that this Congress, at its second session, felt ashamed of the words in the preamble of the old tariff, which assigned among the reasons for its enaction " the encouragement and protection of manufactures," and accordingly struck them out of the new one. To continue them would -have been a mere delusion. The decisive protection of tobacco produced the effect which adequate protection has always done in all similar cases. It nearly expelled the foreign rivals from our market, as will ap- pear from the following statement of the * Debates of Congress, Vol. I. p. 93. 1805, lbs. 4,093 1806, 9,840 isor. 10,261 1808, 4,233 1 809, 636 1810, 900 1811, 18,114 1812, 2,328 EXAMINATION OF THE TARIFF. 521 Imports of manufactured tobacco into the icnited states^ from 1805 to 1819 inclusive.* Brought forward lbs. 50,405 1813, 7,762 1814, 2,161 1815, 705 1816, 2,924 1817, 3,924 1818, 103 1819, 3,297, 50,405 lbs. 71,281 Thus for fifteen years the whole amount of manufactured to- bacco imported into the united states, was only 71,281 lbs. or an average of 4700 lbs. per annum, while we exported about 70,000 hhds. annually, amounting, at 1300 lbs. to the hogshead, to 91,000,000 lbs. To the candid, honourable planters of tobacco, " protected," from the outset of the government, by a duty of 66 per cent. — » to the cotton planters and growers of hemp, protected by a duty, the one of eleven, the other of twelve, and freight of six per cent. — I make a solemn appeal. Can you, gentlemen, lay your hands on your hearts, and aver, that, while the domestic market was thus secured to the American agriculturists, it was fair — or right — or just — or impartial — or consistent with the divine rule — " Do as you would be done by," that your fellow citizens, the manufacturers, should be overwhelmed by foreign rivals, under a duty of five per cent, imposed merely for the purpose, of revenue ? I might here close the discussion, having, I trust, fuil)^ es- tablished the position with which I commenced, viz. that Mr. Cambreleng's assertion that " the venerable system'''' of the Con- gress of 1 790, " awarded equal protection to every branch of 'indus- try^'' is wholly destitute of foundation. But there are other views to be taken of the subject, which place it on much strong- er ground, than I have yet assumed, as will appear from a com- parison of the aggregate protection, arising from freight and duty, of four agricultural and four manufacturing articles. COTTOjW 1790. GOTTOJ vaaons. per cent. per cent- Duty, 11 Duty, 5 lYeight, 6 Freight, 1 TotaJ, 17 Total. "* Scvbert, pag-e 1^5. 66 ^M HEMP, ST-RlGTUPvES ON THE WOOLLEjY GOODS. Duty, Freight, 12 6 Duty, Freight, 5 1 Total, 18 Total, 6 CHEESE. ibojY wares . Duty, Freight, sr 2 Duty,. Freight, S S Total, 59 Total, 8 IJ\rBIGO. LIJ\'EJ\'. Duty, in 1790, Freight, 22 1 Duty, Freight, 5 1 Total, 23 Total, 6 One more view must appal every man who feels for the ho- nor of the country, at the partial and miserable policy of this *•' venerable system.''^ STRIKING CONTRASTS. 6 lbs. of cheese., value 42 cents., paid But 10 yards of linen., value ^5., paid only 8 lbs. of cotton., value 2'iO cents., paid But 10 yards of cotton goods., value %5., paid only 4f lbs. of manufactured tobacco, value 36 cents, paid A yard of broadcloth, value $5, paid but The "equal protection" afforded to commerce, *•' branch of industry,'''' claims a separate discussion, and is there fore reserved for my next number. NECKER. July 21, 1821, Duty. 24 cetits.. 25 cents. 24 cents. 25 cents. 24 cents. 25 cejits. the third NO. IV. TO redeem my pledge, I proceed to investigate the extent of the '•'•protection^'' afforded to commerce, the third " branch of industry,^'' hy the " venerable system" of 1789-90, in order to ascertain, whether it was " equal,'^ according to Mr. Cam- breiing, or superior, or inferior, to that bestowed on manufac- tures.. EXAMINATION OF THE TARIFF". S^ At the commencement of the government, in i.789, the com- nrierce of the united states was at a low ebb. Our tonnage, ac- cording to Dr. Seybert, was inadequate to the transportation of our produce. One third of what was employed for this purpose belonged to foreigners.* Congress laudably and promptly adopted the most vigorous, salutary and efficient measures to extend it, as I shall make ap- pear. Had they afforded manufactures half the aid and pro- tection commerce received from them, the advances of the coun- tn to wealth, power and prosperity, would have been far more raj- id than they have been. Two hundred inillions of money would probablv have been saved, and tens of thousands of va- luable immigrants been added to our population. The third act passed by the first congress, decided the con- test between American and foreign shipping ; gave the form u most decided ascendency ; and laid the foundation of its won- derful increase ; so that in 1809, it was equal to that possessed by Great Britain in 1789.| Bv this act, foreign vessels, engaged in the coasting trade, were subject to a tonnage duty of fifty cents for every entrv. Whereas American vessels paid only six cents per ton, and but once a year. Let us see the operation of this truly national act — A foreign vessel of 100 tons, engaged in the coasting trade, and making suppose twelve to sixteen entries in the year, would pay 6 or 800 dollars per annum — but an American of the same dimensions, would pay but six dollars. This was a virtual prohibition, and nearly expelled foreign vessels from this trade. Yet effectual as was this protection, it was not deemed sufficient. Some years afterwards, foreign vessels were prohibited from engaging in the coasting trade on any terms. The discrimination in the foreign trade made by this act was somewhat varied. American vessels engaged in this trade, paid six cents tonnage for every entxy — foreign vessels fifty as before. In addition to this advantage, there was a discount allowed, of 10 per cent, on the duties upon goods imported in American ves- sels. Thus a foreign vessel of 500 tons, engaged in the foreign trade, and making two entries per annum, would pay 500 dol- lars ; whereas an American vessel of similar dimensions, would pay only 60 — independent of the important advantage of the discount on the duties upon the cargo. The following tables will evince the salutary effects of this wise law, and the unpre- cedented increase of shipping it produced. * Scybei-t'a Statistics, page 292. t ldcT^> 294. 4m STRICTURES ON THE Statement of the tonnage employed in the foreign trade of the united statesfrom the year 1789/0 1804,* American. Foreign. Total. 1789, tons 1. 127.980 tons. . 106,654 tons. 234,634 1790, - 355 079 - 251,058 _ 606,137 1791, - 363,852 - 240,740 - 604,592 1792, - 414,679 - 244.^78 - 658.957 1793, - 44-8,864 - 164,676 - 613,540 1794, ■- 527,196 - 84,521 - 611,717 1795, - 585,994 - 62,549 -■ 648,543 1796, - 678,160 - 49,960 - 728,120 1797, _ 612,014 - 76,693 - 6t;8,707 1798, _ 523,051 - 88,568 _ 611,617 1799, _ 628,511 _ 109.599 - 738,110 1800, . 686,104 - 122403 .. 808,.'>07 1801, - 851,709 - 157,270 - 1,008,979 1-802, - 796,619 - 145,519 - 942,138 1803, - 787,600 - 163.-714 - 951,4o9 1804, _ 822,026 - 122,141 - 944,166 Rapid progress of American tonnage from 1789 to 1805.| 1789, tons. 201,562 1790, 478 377 1791, 502,146 179?, 564,437 1793, 491,780 1794, 628,816 1795, 747,963 1796, 831,900 1797, 876,912 1798 tons 898,328 1799 946,408 1800 972.492 1801 1,033,218 '802 892.101 1803 949.147 1804 1,042,403 1805 1,140,368 But the advantages in favour of the American merchants en- gaged in the China ti'ade, were incomparably greater than in the other branches. The discrimination in the duties on teas was enormous — and, like the tonnage in the coasting trade, amounted to a virtual prohibition of foreign vessels. Schedule of the duties anteas^ by the act of 1789. In American vessels. Bohea tea, per lb. 6 qents Souchong and otlier black teas, 10 Hyson tea, 20 Other green teas^ 12 In foreign vessels. 15 cents. 22 45 27 48 109 Average, * Se}'bert, p. 318 12 27i t Idem, 317. EXAMINATION OF THE TARIFF. 525 In order to evince the great extent of the protection thus afforded to commerce, I shall not — as Mr. Cambreleng says — have recourse to *■'• vague declamations about these matters, which would not satisfy sensible men." I shall, '' therefore ex- plain my calculations by figures," and state the case of a cargo of 30,000 lbs bohea — 20,000 lbs. souchong— and 30,000 lbs. hyson tea. Duty in an American Duty in a foreign vessel. vessel. 30,000 lbs. bohea g 1,800 $ 4,500 20,000 lbs. souchong 2,000 4,400 30,000 lbs. hyson 6,000 13,500 g 9,800 S 22,400 Whoever compares this admirable regulation, in favour of commerce, founded on the experience of the most trading na- tions of the globe, with the paltry duty of five per cent, on the manufactures of cotton, wool, iron, steel, brass, &c. will be struck with amazement at the shocking contrast it exhibits — at the fostering care bestowed on one "• branch of industi-if — and the almost total disregard of another branch, of at least equal utility and of equal claims and rights. Let it be distinctly ob- served, that all idea is disclaimed in the most unequivocal man- ner, of censuring the protection of commerce. — This part of the sy-tem is entitled to the most unqualified approbation. To the inequality of the protection afforded manufactures alone, I wish to turn the reader's attention. A brief analysis of Mr. Cambreleng' s " venerable system?^ We have seen, I. That the " protection" afforded to the great mass of manufac- tures was 5 per cent. II. But that those articles usually imported, which affected the agricultural interest, were subject to duties, varying from 12 to 66 per cent, and averaging 29 per cent. III. And that the merchants were effectually secured in the ex- clusive possession of the coasting and China trade, and had such advantages in every other species of trade, that their shipping was more than doubled in one vear — trebled in six — and quadrupled in eight. CONTRAST. Duty. 50,000 dollars worth of manufactures of cotton, wool, iron, brass, steel, &c. paid S 2,500 62,500 lbs. of cheese, value 554375, paid 2,500 526 STRICTURES ON THE 12,500 lbs. of hyson tea, value jS7'500, when imported in an American vessel, paid 2,500 But 5600 lbs. of the same tea, value ^3600, if import- ed in a foreign vessel, paid 2,520 ONE MORE CONTRAST. A yard of broadcloth, value ^5, paid 25 cents. A pound of hyson tea, value 60 cents, imported in a foreign vessel, paid 45 cents. Being an addition to the duty when imported in an American vessel, of 25 cents. Notv/ithstanding the immense difference in the protection afforded by government to the several " branches of industry," the agriculturists and merchants have been constantly com- plaining of the " monopolies" of the manufacturers — .and of their " taxing the many for the benefit of the few." This is precisely aaalogous to the case of the monk and lay-brother in the School for Scandal. The former, rioting on all the good things that smiling Pioity could spread before him, from her corr:ucopia, reproaches the latter, who is the very picture of Famine, with gormandizing, because he has picked up some of the crumbs that fell from a cake which the monk is greedily devouring. I will propose two queries to Mr. Cambreleng, on which to exercise his talents, and to prove how well founded is his admi- ration of this " venerable system." Can any satisfactory reason be assigned why the raw materi- als, cotton and hemp, paid a duty of twelve — cheese of 57 — and manufactured tobacco of 66 per cent, while manufactures of flax, cotton, wool, iron, steel, &c. paid but 5 ? Can there be any adequate reason, why the American mer- chant, in his conflict with a foreigner, should have had a dis- crimination in the duty on teas to the amount of 125 per cent, while the American manufacturer, in his conflict with his foreign rival, had only five per cent, protection ? When these ques- tions are answered, more shall succeed them. On a fair view of the subject, it may be pronounced, that a xnore partial or unequal scheme of policy has rarely been seen, in any age or nation, pretending to equal rights, than Mr. Cam- breleng's " venerable system^'' of 1/89 — 90; that it as scrupu- lously guarded the interests of two " branches of industry," as it neglected those of the third ; that it partook largely of the spirit which breathes in the legislation of '' mother countries^'' as they are absurdly called, for their colonies ; and that it adds one to the thousand previous instances, to prove, that where the legislation of a nation is confined to one or two descriptions of ritizens, the others rarely experience^ equal justice. EXAMINATION OF THE TARIFF. S2T These are bold averments. But they are not lightly hazarded. They are matured and deliberate convictions, the result of a so- ber and- serious reflection as I have ever bestowed on any sub- ject. They are true or false. If true, they ought, however un- palatable — and greatly unpalatable they must be to some of our citizens — to be loudly proclamied, and have been too long sup- pressed. For their truth, I make myself responsible, if, how- ever, they are false, let their errors be pointed out, and they shall be acknowledged and retracted by NECKER. yw/i/ 30, 1821. NO V. Mr. Cambreleng's views of the early prosperity of the eotton " branch of industry'''* come next under discussion. In various parts of his work he most unequivocally asserts that this branch was in a most flourishing state, *•' under the old and moderate duties''^ previous to the war. " From the advantages naturally possessed by the united " states, in the production of the raw material ; from the en- *' couragement afforded by the emigration of English manufac- " turers, and the substitution of machinery for manual labour, *' it was evident that manufactures of this raw material would *•'■ be ani07ig the Jirst objects of attentio7i in this coxintry. We •' accordingly find that in 1790, a factory existed with a capital " of S50u,000.* And the cotton manufactories, as we shall " see, with the aid of these powerful causes, continued to fiour- '' ishr\ " Our present duties are high enough for revenue. Our cot- " ton factories never flourished more than they did under our old " and moderate duties, long before the xvar — and certainly they " do not stand in need of high duties now.'':): This splendid detail is a mere " beau ideaP^ — or " fancy sketch" Closing the historic page, and unmindful of the facts of the case, it draws largely on imagination. The " society" referred to by Mr. Cambreleng, was estab- lished at Patterson in New Jersey, and, under a more auspicious regime, could not have failed of signal success. The place pos- sesses every possible advantage for manufactures on a large and magnificent scale. Suitable sites were purchased — and ma- chinery and workmen provided. Nothing was wanting but th^- * For this fact Mi". Canibreleig" refers to Mr. Hani'ltnn's Rcnorl f Ex.iTnination, page S7. ^ Tdcm. 528 STRICTC'irRES OU tllE favour and protection of government. A duty equal to that imposed on hemp or cotton, or a third part of that on tobacco^ or chefese, would have rendered Patterson a mine of individual and national wealth and prosperity. All applications for the purpose were wholly in vain. The congress of that day re™ garded with the same withei-ing indifference, the decline of the establishment as their successors have in 18 16, 17", 18, 19 and 20, regarded the calamitous scenes exhibited in Pittsburg, at Brandywine, in Philadelphia, and elsewhere.* The danger of smuggling — the high rate of wages — the injustice of " taxing the many for the henejit of the few'''' — our want of ripeness for manufactures — the enormous extent of our back lands — the pu- rity of a country life, with the immorality of manufacturing es- tablishments — and the great variety of other i-easons, if reasons they can be called, which have been so constantly used ever since, were then adduced with success, to defeat the appli- cations of the manufacturers, and prevent a compliance with their petitions. The protection of government, which, to the success of this important undertaking, so worthy of national support, was as necessary as the alternation of heat and rain, to secure a plentiful harvest, was withheld. The duty remained at five per cent, while, as Ave have seen, cheese was protected by a duty of fifty-seven, and manufactured tobacco by 66 per cent. The consequences were fatal, as was foreseen and pre- dicted. The establishment went to ruins— the undertakeirs were bankrupted — the capital invested was wholly sacrificed — the workmen were dispersed, and generally " went back" to cul- tivate the soil — and the undertaking served as " an awful beacon''' to warn our citizens of the folly of engaging in irtanufacturing establishments on a large scale, under a government which left them to struggle against the overwhelming superiority of for- * It ought to be borne in remembrance, that above forty petitions and memo- rials, witli thousands of signatui-es, were presented iii 1S1(> — 17, to the fourteenth Congi'ess at its second session, by the suffering manufacturers in Boston, Provi- dence, Newhaven, Hartford, New York, Philadelphia, Baltimore, Pittsburg, Berkshire, in Massachusetts, Oneida county in New York — and from various other towns and places in Massacliusetts, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, Kentucky, and Illinois ; pi-ayingfor protection against the overwhelming competition of foreign nations, with whose merchandize, to an enormous amount, the country was deluged, whereby their capitals, ,.tQ the amount of millions, were nearly destroyed, and their hopes of prosperity in the pursuit of their lawful avocations blasted ; that not one of them tuas &uer t'eadin the house ; that they ivei^e not e-oen reported 07i, except those that respected the iron hiisiness ; and that not one single measure was adopted to afPbrd relief to tlie ap- phcants. Such flagrant and unfeeling disregard of public distress, such gross neglect of the voice of constituents, was probably never displayed by any otiier legislatiu-e in any age or nation. This was the memoi-able Congress, wiiich pass- ed the act to render themselves salary officers, with 1500 dollars per annum. This act %vent thi'ough the houses almost wi^out debate, and, in twelve dayy from its inception, became a law ! £XAi!£lNATIOK OB THE TARIFi. 529 cign rivals, with a *-*■ protecting duty^'* of 5, 7h-, or 12| per cent ! ! The admonition was not lost, as will appear in the sequel. Yet this is Release on which Mr. Cambreleng, unhappily for his cause, relies, to establish the prosperity of the cotton " branch of industry." If it proves nothing else, it moit satisfactorily proves how careless he must have been in his investigations — and how cautiously he is to be received as authority. Cotemporaneously with the establishment at Patterson, a re- spectable society was formed in Philadelphia, which embraced a considerable portion of our citizens. A cotton factory on an extensive scale was established, and struggled with foreign ri- vals for some time. But the struggle was equally unavailing with that at Patterson. The undertaking shared the same fate; looked in vain to the government for protection ; went to decav ; and was finally " blotted from the map" by a conflagration, the work of a wretched incendiary. Having now dismissed these two establishments, I proceed to detail the real state of the cotton manufactory under " the old and moderate duties" of " the venerable system'''' of the Con- gress of 1 790, which " equally protected every branch of z«- dustry.^^ With all the immense advantages for the cotton manufacture possessed by this country — boundless water power — raw ma- terial to an unlimited extent — hundreds of immigrants brought up to the manufacture — and citizens of the utmost energy and enterprize — it made so little progress from 1789 till the close of the year 1807, that there were at the latter period but 8000 spin- dles in operation in manufacturing establishments, in Massa- chusetts, Connecticut and Rhode Island — that Is, at the expira- tion of the eighteenth year of the operation of a government, which, we are gravely assured, " afforded equal protection to every branch of industry." This is a strong assertion, and demands irrefragable proof, which shall be given. Mr. Gallatin was instructed, by a resolution of the house of representatives of the united states, to institute an inquiry into the state of the manufactures of this country. With this order he complied, with his usual indefatigable industry, and ac- cordingly made report on the 17th of April, 1810. Misstate- ments are in the most direct hostility with the captivating des- criptions of Mr. Cambreleng. " The first cotton mill was erected in the state of Rhode- " Island, in the year 1791 ; another in the same state in the " year 1795 ; and two more in the state of Massachusetts, in "the years 1803 and 4."* • Gallatin's report on manufactures, 67 530 si-RICTURES ON THE This was the wonderful state of prosperity of the cotton ma- nufacture, in 1804, after a lapse of fifteen years from the date of the " vetierable system o/" 1789." " During the three succeeding years, ten more were erected, " or commenced in Rhode Island, and one in Connecticut, mak- " ing altogether fifteen mills erected befoj-e the year 1808, work- " ing at that time about 8000 spindles, and producing ab out " 300,000 lbs. of yarn a year."* What a prodigious contrast between this plain statement, and the view presented in the ^^Examination of the tariif!" The one oifers the dreary and desolate face of winter — the other all the loveliness and bloom of spring. For some of the numerous errors of Mr. Cambreleng's book, apology can readily be made. Its publication was, according to his own statement, " of necessity hastened, that it might antici- pate the vote on the tariff," and defeat the views of the manu- facturers. On some points it was difficult to procure documents under such circumstances of haste. But when he could not pro- cure them, he ought not to have used such strong and positive assertions and assumptions, so very wide of the real state of the case. An egregious error of Mr. C. respecting the cotton "branch of industry" is an idea clearly held out, that it was injured by the embargo and other restrictive measures. "We have," says Mr. C. " in the preceding chapter, traced "the history of our cotton factories to the present time; and "have also noticed that '■'■ their natural vigour was suchy that *' tho2/gh distracted by embargoes^ restrictions and war, they st\ll " increasedyf I trust I have satisfactorily proved, that there was no such " natural vigour" in the cotton factories as is here asserted ; and that the whole number of spindles employed before the year 1808, was only 8000. Now it remains to prove, that so far from being " distracted," their progress was prodigiously acce- lerated, by " embargoes, restrictions and war." We have seen how slender was their progress till the close cf 1807. The embargo took place about that time. As to the subsequent progress, I refer Mr. C. and his friends to Mr. Gallatin, who says — " Returns have been received of 87 mills "which were erected at the end of the year 1809 — Sixty-two of " which, (48 mules and 14 horse mills) were in operation, and *' worked at that time 31,000 spindles. The other 25 will be in " operation in the course of this year [1810,] and, together with " the former ones (almost all of which are increasing their mu- * Gallatin's report on manufactures, f Examination of the taj'iff. EXAMINATION OF THE TARIFF. oSl "• chinery,) wiii, by the estimates received^xvork viore than 80,000 ^'■spindles at the comineticetnent of the year 1811. ^^"^ So much for the " distractions of the embargo and restrictions ^ Now for the effect of the war. In 1815, the capital invested in this branch was S40,000,000 — the cotton consumed 90,000 bales — the number of people employed 100,000 — the wages paid an- nually Si 5,000,000 — and the value of the cotton produced, JS24,300,0004 Would it not be a work of extreme supererogation, to add a fact or an argument, to prove how radically Mr. Cambreleng's statement on this subject is wrong in all its points ? NECKER, NO. VI. To the Friends of Natural Rights^ aliasy the Cambrclengian Philosophers. Gentlemen^ It is, you will suppose, with the utmost fear and trembling, that I venture to enter the lists against so formidable a phalanx, armed with the tremendous weapons you employ with such pro- digious skill and facility. Those weapons are as truly formi- dable as langrage, Congreve rockets, red hot balls, fire ships, and infernal machines in warfare. The oratory of iEschines, De- mosthenes, or Cicero — the logic of Aristotle, Locke, Watts, or Blair — and the political economy of Colbert, Sully, Elizabeth, Frederick, or Hamilton — could no more withstand you than a sloop of war could withstand a well-directed broadside from a seventy-four. What chance, then, can the poor " Careyan Phi- losophers," as you judiciously, and humourously, and wittily style your antagonists, have in the conflict with you ? None. We must beat a retreat — burn our books and papers, including " the library of old Statisticus" — succumb to your irresistible lucubrations — and, if pursued, surrender at discretion. To prove that my terrors, however extreme, are not irra- tional, and that 1 do not overrate the destructive nature of the logical weapons you employ, it will be proper to describe them, which I shall do in brief. They are — a most outrageous mis- representation and caricature, not to say falsification of the po- sitions and statements of your antagonists — intrepid assertions, not only without the shadow of proof, but without an attempt at proof — puerile personalities — a quibbling evasion of facts which ♦ Mr. Gallatin's report. + lleport of the committee of commerce and manufactures, 18X6. 532 STRICTURES ON THE cannot be disproved — an unceasing attempt at humour, wholly out of time and place — in a word, the reverse of every thing like fair or dignified argument. Those who carry on a polemical campaign with such wea- pons, have an immeasurable advantage over their antagonists : for without one fair or candid quotation from their writings — without a single relevant fact — ^without the slightest study or examination of the subject — without disproving a fact or refut- ing an argument — they can silence and bear down all opposition, and, carrying on " a windy war of words," throw dust in the eyes of their opponents and those of the public. But, gentlemen, powerful as is this system of warfare, and great as is your ability in carrying it on, I cannot flatter you in the opinion that you are the inventors of it. No. It has ex- isted from the earliest periods of human controversy to the pre- sent time, and been invariably called in to aid a feeble cause : a sound one scorns such an auxiliary. But though I cannot admit your claim to the invention, I freely allow that you have great merit in its improvement. You far excel your predeces- sors in the various manoeuvres and stratagems of which the sys- tem is susceptible. Mr. Cambreleng wrote a book against the tariff, containing a tiumber of vital errors calculated to mislead the public mind on this important subject. I regarded it not merely as a right, but a duty to point out those errors. I have done it, I trust, in a manner becoming a gentleman, without an offensive or illiberal line or word. If I have succeeded in establishing those er- rors, the course for Mr. Cambreleng or his friends to pursue, is to retract them — not, as you have done, to involve the subject in mists and confusion, in order to prevent a correct public de- cision. But if I have failed, let the failure be proved, and I shall acknowledge my mistake. You have, ad captandum^ accused me of an " unnatural hosti- lity to farmers,''^ You are called upon either to produce a sen- tence which warrants this accusation ; to admit that you have been guilty of calumny ; or else to let the matter pass sub silen- tio, and acquiesce in the public decision on the case. Your reflections on my age — my '■^ patriarchate,^^ &c. &c. I will not say, I despise. That would be a very harsh word. But this I will say, in perfect soberness, that I regard them with the most sovereign indifference, and as a proof either of the ac- knowledged weakness of your cause, or the want of judgment of its advocates. On these topics you may freely ring the changes to the utmost extent of the ^powers of your prolific pens. . Of your evasion of facts, incapable of disproof,^ I will furnish but one instance t — EXAMINATION Of TH£ TARIFF. 533 Mr. Cambreleng asserted that " the Congress of 1790, equal- ly protected every branch of industry ;" and on the basis of this assertion, erected a splendid fabric of eulogium on that Con- gress, and held out their example to be followed at present. This dictum I fully disproved, by reference to documents, and shewed that while the great mass of manufactures were left to struggle under '■'■ a protection^'' as it is incorrectly called, of five per cent, commerce experienced the most ample, liberal, and complete protection : — I. By a discrimination in the duty on the tonnage engaged in the foreign trade, equal to 700 per cent, on every voyage : for American vessels paid but six cents per ton, while foreign paid 50. Laws of Congress, Vol. II. page 6. II. By a discrimination in the duty on the tonnage engaged in the coasting trade, equal to above 4000 per cent, per annum, in the case of only six entries in the year. For American vessels engaged in the coasting trade, paid but six cents tonnage duty per annum ; while foreign paid 50 cents on every entry. III. By a discrimination in the duties on teas imported in foreign and American vessels, equal to 125 per cent, whereby the China trade was secured to the American merchants : In American In Foreign vessels. vessels. Duty on Bohea tea per lb.* 6 cents. 15 cents. Souchong and other black teas, 10 22 Hyson, 20 45 Other green teas, 12 27 48 cts. 109 cts. Average, 12 27i IV. Bv an addition of 10 per cent, to the duties on goods imported in foreign vessels. To which I now add : V. By a bounty, in 1790, of ten cents per quintal on dried fish, and ten cents per barrel on salted fish and provisions. Now this is a plain case, in which there is no room for sub- terfuge or evasion. It is a mere question, whether five per cent, is equal to 125, or to 700. If not, Mr. C's assertion is wholly destitute of foundation. * These duties were imposed in 1789 — but were modified in 1790, when the duties on teas imported in American vessels were considerably raised. The dis- crimination was thus reduced to about 50 per cent, on an average, which was, as every person must allow, as total and complete a prohibition of the trade to fo- reigners, as the duties of 1789. 534 STRICTURES ON THii And what are the arguments you advance to support Mr. Cambreleng, or to overturn my statements ? With the follow- ing four lines, you suppose you have gained a complete triumph over these important facts : " Then comes No. IV, with its attendant tables, to show us " how sumptuously the merchants fared at this bounty board — " Will Monsieur Necker tell us the merchants were very formidu' " ble in the Congress of 1790 ?" Now, Messieurs " Friends of Natural Rights," I ask what bearing has this query on the subject ? The only points at issue in this case, ai-e not, whether " the merchants were very formidable in the Congress of 1790" — -but whether their inter- ests were fully and completely protected — and whether equal protection was extended to " every other branch of industry," as Mr. Cambreleng has erroneously asserted ? I trust I have fully proved the affirmative of the one, and the negative of the other question. That the merchants must have had great influ* ence, the result makes manifest. They were most ably repre- sented. From these points you display your address in with- drawing the public attention. Of the " outrageous misrepresentation^'' of the positions of your antagonists, I shall furnish a few out of the numerous in- stances wherewith your three numbers abound : — " These disinterested and self-styled patriots, approaching " us with the tones of sweet persuasion, and expressing the ten- " derest solicitude for our welfare, tell us that xue never can " he rich and happy until we bind our wants ^ our rights^ and " i}iclinatio?is, with irritating and unnatural restrictions ; until " zve clothe one branch of industry with a general monopoly ; 2Xi^ " impose on the mass of the community the bonds of colonial " vassalage. 44 Agriculture and commerce ruin a nation ; labour can never *' be productive but in manufactures. " When some branches of industry languish, all the atten- " tion of government should be bestowed on that branch " which remains profitable ; for it is a settled maxim in political " economy, that a bounty should never be granted^ until he who " is to receive it is able to do without it. " The proper way to enlarge the demand for surplus grain or " other productions^ is to confine the sale to the domestic mar- " ket. " Government was never instituted to secure personal rights, " or to preserve the morals or happiness of the people ; but " only to superintend the wealth of the nation : for, it is a set- " tied maxim, that no nation can be enriched without an entire " sacrifice of morals^ rights^ and happiness. EXAMINATION OF THE TARIFl. 535 '' It is a vulgar notion, that the property which a citizen pos- " sesses, actually belongs to him : for he is a mere tenant^ labor- " er or agent of the government^ to whom all the property in the " nation legitimately belongs. " The government may, therefore, manage this property ac- " cording to its own fancy, and shift capitalists and labourers " from one employment to another. " Should a citizen be thus transferred from trade to trade, " and thereby lose that which he supposed to be his own pro- " perty, and find his family in want, he could have no right to " complain : the government would have only used its own pro- " perty in experiments to increase its capital.'^'' — Friends of Natu- " ral Rights, No. III. In what page of the writings of the friends of the protection of manufactures, have you found these sentiments ? Where can you produce any thing that looks even like the shadow ot them ? And if you cannot, how can you justify such a monstrous perversion of their views — such a wanton departure from fact ? The history of controversies, religious and political, affords hundreds of instances of books being condemned, and many of them burned, through the artifice of making partial, insulated extracts from the matter which they contained, whereby their authors were made to speak a language wholly foreign from their hearts. Your procedure is still more extraordinar\% You make no extracts, partial or impartial — but absokitely fabricate for your antagonists a system utterly abhorrent from their views. Your sketch is as fo^^eign from theirs as light from darkness — virtue from vice. This is the true plan of the inquisition, whereby the destined victim, previous to immola- tion, is clothed in a San Benito dress, ornamented with devils and " goblins damned'''' in torments, to excite the horror of the spec- tators. I appeal to the good sense of the readers of the Intel- ligencer, whether a more outrageous violation of fact can be found, than the preceding extracts exhibit. If the system of the " Cai-eyan Philosophers," be dangerous and destructive, there can be no need of such unprecedented fabrication. I will not ask whether this procedure is honourable, or gene- rous, or liberal — but merely whether it is honest ? \^'hether it is not unworthy of gentlemen — discreditable to the cause you advocate — and an insult to an enlightened public ? The cause at issue is one of immense importance. Let it be fairly argued. Let that side whose arguments are most cogent, triumph. But let not means be resorted to, which would answer equally v^-ell for the worst, and against the best, cause that ever existed. NECKER. Philadelphia^ Sept. 1, 1821. o36 STRICTURES ON TH£ NO. VII. I PROCEED to notice a few more of the very numerous er- rors in Mr. Cambreleng's book. These are, it is true, far in- ferior in importance to those I have already developed — and are adduced principally to afford further corroboration of the extreme carelessness, in point of fact, displayed in the Exami- nation, which, in a work of this kind, is a radical and vital de- fect. '' It may be fairly presumed, that a day labourer in a facto- *' ry, will remain and die in that condition ; and probably all " that he can leave his family will be that state of dependence *' in which he has lived. The very house which his family oc- " cupies, belongs to the proprietor of the factory. Such is too " generally the produce of the labour of that man who depends " on a factory for employ. He may add to the population of " the nation, which he would do in any case. But he adds no- " thing- to the wealth of the nation by accumulating property for him- *' self — the best possible wealth for a free government." Ex- amination, page 7. This statement is intended to excite, and has excited jea- lousy against the manufacturers, and hostility against any mo- dification of the tariff, as if the benefits to arise from protect- ing duties, v/ould have no operation in favour of the large class of working people, but centre wholly in the hands of capi- talists. Were this objection really well founded, it would af- ford an argument of no small force against the proposed sys- tem. But it is so wholly the reverse, that in many of the trades carried on in this country, there is not the least difficulty for a journeyman to commence operations on his own account. It is much more practicable than for a country labourer. I will exemplify this argument by the cotton branch — but the reason- ing will apply with nearly equal force to a great proportion of the other branches. A cotton weaver earns here five or six dollars per week. A sober, industrious, frugal man can support an average family of four persons on four dollars. A loom costs about twelve. With the savings of a very few weeks, therefore, a workman can purchase a loom ; commence business ; and, Mr. Cambre- leng's assertion to the contrary notwithstanding, may " add to the xvealth of the nation^ by accumulating property for himself — the best possible xvealth for a free government?'' This, let it be added, is not a " day dream" — a *' fancy sketch," calculated to dazzle or amuse. It is a sober reality. There are hundreds of persons in this single branch, of this EXAMINATION OF THE TARIFF. 537 precise description, in Pennsylvania, New York, Massachu- setts, Connecticut, and Rhode Island, who are now working on their own account, after having been, at no very distant period — many of them within the last four, five, or six months — em- ployed as journeymen. In the city of Philadelphia alone, the number is so great as to be scarcely credible. At a late public sale of looms belonging to a factory, the buyers of this class were so numerous, that the looms sold very nearly as high as they originally cost. This state of things is by no means confined to this single branch. It extends, I repeat, to a very large proportion of the others. And it would not be extravagant to assert, that far more than half of the master manufacturers throughout the united states, even of those who conduct business on a large and extensive scale, were originally journeymen. There are, it is true, some branches, which require very large capitals, and which cannot, of course, be commenced so soon, nor on such easy terms. But there are scarcely any, which fru- gality and industry will not enable a journeyman to commence in process of time. In various parts, indeed throughout Mr. Cambreleng's work, he has fallen into an egregious error on the subject of Mr, Ha- milton's Report, which he gives as the foundation of the tariff of 1790. " The report was acted on by the Congress of 1 790, so far " as it related to the revenue ; but that Congress cautiously " omitted adopting the language of the report, as far as it re- " lated to the encouragement of manufactures." — Examination, p. 26. " In consequence of Mr. Hamilton's report, and the neces- " sities of the government, a new revenue law was enacted on " the 16th of August, 1790."— Idem, p. 30. This " revenue law" was enacted at the date stated by Mr. Cambreleng. But Mr. Hamilton's profound and celebrated report was dated December 5, 1791. It could .not, of course, have been the basis of the " new revenue law." To all its wise suggestions and admonitions. Congress never paid the least at- tention. They were to that body a complete dead letter, to the manifest injury of the nation. *' If the British system be adopted, it mvst gradually transfer " the legislative poxver in this country ^from thefarmers to the ma- " nufacturers ; this being the inevitable effect of taxing the one " class to enrich the other ; thereby impoverishing the class tax- *'ed, and diminishing their numbers." — Idem, p. 9. This assertion is truly ludicrous. The idea that the increase of the duties on cottons, woollens, iron, &c. &c. eight, ten, or twelve per cent, or even fifteen or twenty, had it been contem- 68 538 - STRICTURES ON THE plated to raise them so high, would, " transfer the legislative powerfrom the farmers to the manufatturers^'' betrays a wonder- ful degree of credulity ; for I will not allow myself to believe that Mr. C. holds out this phantom to terrify the farmers, with- out being himself affected with the hideous spectre. *' Mr. Hamilton's great object, in his report on manufactures, "was to establish a system of revenue to meet the expenses of " the government, and pay the interest of the public debt." — Examination, page 25. Some of Mr. Cambreleng's errors, as I have already observ- ed, are entitled to apology, from his " publication,'' according to his own account, being " of necessity hastened that it might anticipate the vote on the new tariff." But for the present er- ror there is no apology whatever. Mr. Hamilton's Report was to be had without any difficulty ; and it is to be presumed Mr. C. must have had it in his possession — otherwise it would have been highly improper to refer to, and comment on it as he has done. Now, it requires but a very cursory examination, to see that the alpha and omega of this report were the protection and encouragement of manufactures. These form the object and end of all his reasonings — all his facts. Never was a subject more elaborately and convincingly discussed — and never was a sj'stem more ably and unanswerably supported. It is impos- sible to read the report with due attention, and with a mind open to conviction, without being a convert to its doctrines. Revenue is but rarely mentioned, and never otherwise than incidentally. Mr. H. successfully combats all the objections to his system on the ground of its pretended tendency to impair the revenue, by the following, among other irrefragable reasons. " The possibility of a diminution of the revenue may present " itself," says Mr. Hamilton, " as an objection to the arrange- " ments which have been submitted. " But there is no truth which may be more firmly relied on, " than that the interests of the revenue are promoted by whatever '■'■ /promotes an increase of national industry and -wealth. " In proportion to the degree of these, is the capacity of every " country to contribute to the public treasury : and where the " capacity to pay is increased, or even is not decreased, the only *' consequence of measures which diminish any particular re- " source, is a change of the object. " The measures, however, which have been submitted, taken " aggregately, will^for a long time to come^ rather augment tha?i " decrease the public revenue." — Hamilton's Works, Vol. I. page 275. This, I presume, proves that Mr. Hamilton's " great object" was not " to establish a sytem of revenue" — but to promote the EXAMINATION OF THE TARIFF. 539 industry, whereby the capacity to raise a revenue would be greatly enhanced. I return again to the Examination : — " If the citizens of the united states," says Mr. Cambreleng, " want to see a democratic tariffs let them look at that of 1790. — " The men who framed it knew what equal rights were, because " they had fought bravely for them. In that tariff they will " not find the poor paying a higher duty than the rich for the *' same article. Each man zvas then taxed according to his ability : " and luxuries paid the highest rate of dutyP — Examination, page 94, I shall make a very fair comparison of the duties on different articles in this '•'- venerable^'' this '■'■democratic tariff^'' in order cleaily to establish how inexcusably wide of the mark Mr. Cam- breleng has diverged in this statement. I will take on the one side articles used exclusively by the rich — and on the other, articles in daily use by the poor, and I trust the reader will be lost in astonishment at the utter inequality and injustice of this tariff, although, as we are exultingly told, " the men who framed " it, knew Avhat equal rights were, because they had fought ♦* bravely for them," Strong positive facts are not to beset aside or refuted by a few sounding phrases, however plausibly or dogmatically delivered. I confine myself on the one side, to silks, sattins, superfine broadcloths, gauzes, rich chintzes, gold watches, pearls, dia- monds, paste work, embroidery, jewelry, and laces — and on the other to bohea tea, brown sugar, coffee, salt, cheese, and molas- ses — and by these articles shall bring to the test the accuracy of Mr, Cambreleng's encomiums on this " democratic tariff^ The articles in the first class are easily dispatched. They were all subject to one simple duty, which was no more than five per cent . The other articles require more detail. They were subject to specific duties, as it would have been too revolting to have fixed ad valorem duties so extravagantly and iniquitously high as the amount they really paid. Bohea tea and brown sugar are exclusively used by the poor. The former cost at that period, 15 cents per lb. and paid a duty often cents, equal to sixty-six per cent. Brown sugar cost about six cents, and paid a duty of one and a half, which is twenty-Jive per cent. Salt cost about 15 cents per bushel, and paid 12, which is eighty per cent. Cheese cost about 8 cents per lb. and paid 4 cents duty, equal to ffty per cent. 540 STRICTURES ON THE Molasses cost 24 cents per gallon, and paid 3 cents duty, equal to cud^l twelve per cent. Coffee cost 12 cents, and paid 4 cents ©niy, equal to thirty-three per cefit. Now, courteous reader, are you not lost in admiration of the " democratic principles'"^ of this " venerable tariff I'''' and of the profound regard for " equal rig-hts" of " the men who framed it," and " who bravely fought for them ?" Let us calmly examine the operation of this ver\' " Vener- able tariff," in order that " he who runs may read" its demo- cracy. A poor man with a family of four persons will consume about one third of a pound of tea, and three pounds and a half of sugar in the week, equal per annum to 17 lbs. of the former and 180 lbs. of the latter. 17 lbs. bohea tea, cost $2 55 and paid duty ^1 70 180 lbs. of brown sugar cost 10 80 and paid duty 2 70 First cost, Si 3 33 Duty, !g4 40 I will suppose a rich man to consume for himself and family in the year, 1 2 yards of superfine broad cloth, at four dollars, and 80 yards of silks, sattins, gauzes, chintzes, &c. at half a dollar. 12 yards broad cloth $48 paid duty $2 40 80 yards silks, &c. 40 paid duty 2 00 First cost, S88 Duty, $4> 40 Note. These prices and duties refer to the year 1790. Thus the poor man paid on less than 14 dollars, in necessa- ries, as much duty as the rich man on 88, partly luxuries ! So much for Mr. Cambreleng's " democratic tariff"''* — and so much too for the impartiality of the first Congress, who " knew what equal rights were" — as " they had bravely fought for them." The reader must, therefore, clearly agree with Mr. Cambreleng, that " each man was taxed according- to his ability ! ! .'" and that " luxuries paid the highest rate of duty ! ! .'" Much comment on this cannot be necessary. It requires but a single glance to perceive, that a more unjust, partial, unequal or impolitic system can scarcely be conceived. It taxed necessa- ries high, and luxuries low, and thus bore hard on the poor — . and lightly on the rich. It taxed most exorbitantly all the ar- ticles which we could not or did not produce, and admitted at the minimum rate of duty all the important articles, of which the manufacture was or could be established in the country. — It was admirably calculated — I do not pretend (as I only dis- cuss its actual operation) to say intended — it was, I repeat, ad- EXAMINATION OF THE TARIFF. 541 iiiirably calculated to promote the manufactures of Europe, and to depress those of this country.* A recent writer has triumphantly asked, what connexion has this tariff with the present policy of this country? Let him make this enquiry of Mr. Cambreleng. It was he, not I, who intro- duced it on the tapis. NECKER. Philadelphia^ Sept. 17, 1821. NO. VIII. I HAD determined to discontinue these strictures — but on casting my eye again over Mr. Cambreleng's work, I find so many important mistakes remaining unnoticed, that I have judg- ed it necessary to resume the subject. Among the multifarious errors in the writings of the oppos- ers of a modification of the tariff, the most serious and perni- cious is, the assumption of consequences from the measm-e, of which it is not, and cannot be susceptible. They conjui^e up a hideous monster, with a Gorgon's head, the creature of a wild imagination. Of this monster they display the terrible features, to affright and terrify the public. They give him battle with great zeal and ardour, and obtain an easy triumph — which they magnify into a victory over the projected measure. This is a revivalof the heroic achievements of Don Quixote, and a speedy conversion of windmills into giants — of flocks of sheep into legions of armed men. On such terms literary and polemical honours are of easy attainment. • This is a very strong assertion, but has been coolly and deliberately weighed, and is fearlessly advanced. It challenges Mr. Cambreleng and all his friends for a refutation. The reputation, talents, public spirit, or integrity of the first Congress, which have been pressed into the service, by a recent writer, have nothing to do with the question, and are introduced merely to throw dust in the eyes of the pubUc, and withdriiw attention from the real merits of the case. Had that Congress been composed wholly of Washingtons, Franklins, .Teftersons, Han- cocks, Adamses, Rutledges, Randolphs, Jays and Clintons, this circumstance would not convert their en'ors into wisdom, nor their aristocratic tariff into a. •'democratic" one. And I trust there cannot be found in the wide compass of the united states, a single man who has any reputation to lose, who will dare to assert, that it was wise, just, fair, equitable, or consistent with sound policy, to tax bohea tea at 66 per cent ; coffee at 33 ; salt at 80 ; moKasses at 12 ; brown su- gar at 25, and cheese at 50, while silks, sattins, cmliroidery, watches, gauzes, chintzes and pearls were subject to only five per cent ; and the great leading ma- nufactures of cotton, wool, hemp, flax, &c. to the same low duty. Never in the whole history of trade, commerce, or political economy, lias tbcrc been a similar case exhibited. 542 STRICTURES ON THE I will not assert that this system proceeds from a deliberate intention to lead the reader astray — or to deceive the nation. The course I have pursued with Mr. Cambreleng forbids this assumption. Knowing the powerful influence of prejudice, I am willing to suppose that the errors here complained of, result from any other source than wilful misstatement. Among the cases of this kind, is to be enumerated Mr. Cara- breleng's anticipation of the '■'- prohibk'ton of the exportation of cotton^'" as the result of the new tariff! This tremendous result is to be produced not by a direct or positive act for the purpose —but is to be indirectly accomplished in a " smoother xvay^^^ of which Mr. Cambreleng himself shall furnish an explanation, whereby the reader v/ill be able to judge of the fallacy or the soundness of his views. " The policy of the government ought to keep in view the " market for our surplus cotton. If we adopt the -wild scheme '' of coercing Great Britaiii^ and ruining her factories^ by prohi' " biting the exportation of our cotton to England! I ! it will ter- *'minate like our fomner experiments. It will not answer to tell "us, there is no intention of prohibiting the exportation of our " surplus cotton ; a system which virtually effects it, is only a " smoother xvaij of doing the same thing : the difference is in "form, not in motive or result." — Exajnination^ page4<2. Now, courteous reader, what is the very " smooth way" in Vi^hich this terrific consequence is to be produced—this " -wild scheme of coercing Great Btitain^'' whereby " the exportation of our surplus cotton^'' is to be '•'■prohibited^'* and the ^'•factories of England to be ruined T"* You will probably suppose it is by a prohibition, or something approaching to a prohibition, of the im- portation from Great Rritain, of cotton manufactures of every description— as scarcely any thing short of this " Tjoild measure^"* could produce such an awful result. In these suppositions, you would be egregiously in error. — I will sta.te exactly what is the change the proposed tariff would make in the existing duties on manufactured cotton. At present cotton goods below 25 cents per square yard, are dutied as if they cost 25 cents ; and all above that price pay "Hth per cent, on the invoice. By Mr. Baldwin's tariff, all European cotton goods above 25 cents per square yard, would pay 33 per cent.; those below that price, 33 per cent, on 25 cents ; and those from beyond the Cape of Good Hope, 40 per cent. Thus it appears that this desperate confederacy for the pur- pose of " coercing Great Britain^'' and " ruining her factories^"^ '■'' hy prohibiting the exportation of our surplus cotton^''^ resolves itself into a simple addition of 8 per cent, to the existing duties on cotton goods. That is, that such goods as now pay 25 per cent, shall in future pay 33. EXAMINATION OF THE TARIFF. 543 It is difficult to treat such monstrous errors on so important a subject with good humour. Waving all idea of sinister mo- tives, they betray such a carelessness of investigation — such an intrepid assumption of positions diametrically opposite to the real state of the case — and such an extravagant delusion, as ex- cite astonishment, and justly merit severe censure. They forbid reliance on the dicta of writers who are led so far astray by their passions or prejudices. Let it be observed that Mr. Cambreleng has asserted une- quivocally, not only that the present high duty on cotton goods below 25 cents per square yard, is equivalent to a prohibition, (see Examination, page 45,) but that our cotton goods had for ten previous years superseded the use of the coarse East India cottons. Therefore, as the low-priced goods, according to his view of the subject, are, even at present, effectually excluded, the question oi'"'- ruining the British manufactories^'' turns mere- ly on the 8 per cent, which, as I have stated, is to be added to the duties on those above 25 cents per square yard. It is scarcely necessary to add, that the 40 per cent, on East India ' cottons could not " ruin the British factories j" on the contrary, by excluding many of the articles now imported from beyond the Cape, they would afford a vacuum to be filled with British goods. Once more, " If our laws prohibit importations ^^"^ [what an important little word is if ! We might simply reply — hut ij they do 720?, what then?] "the farmer must necessarily cany his " produce where he can exchange it for the articles he v/ants, " to the domestic manufacturer, or his agent, the merchant.— " It is idle to think that we can long find a market abroad for " the produce of our farms, (/'zfc take nothing but money in cx- " change.'''' What a mighty fabric is here erected — no less than the pro- hibition of importations — and the receipt of " nothijig but mo- ney'''' for our productions ! What an extraordinarv and perni- cious change in our affairs! But never was there a fabric erected on a more tottering and unstable foundation. The whole rests on two ifs. It requires but slender powers of logic to see how ill able they are to support this mighty burden. It is to be regretted that Mr. Cambreleng did not preface his hy- pothesis with another if and make a trio of them. For instance — ^we cease to use tea, coffee, W. I. rum, sugar and brandy, wines, pepper, s^lt, cashmere shawls, Leghorn hats, superfine cloths, &c. in such a case what will become of our commerce — and our merchants — and where shall we find a market for our surplus productions ? In order to tranquillize Mr. Cambreleng's fears, and to prove that our dangers are not quite so formidable as he appears to 544 STRICTURES ON THE suppose — let it be observed that the duties on teas, coftee, su- gar, molasses, salt, wines and spirits, amounted in 1819, to 189,631,738 — and rating them at 40 per cent, of the cost, which is about a fair average, the value of the imports was above 24,000,000 of dollars. Adding to this sum three or four mil- lions for raw materials, and 10 or 12 millions for broad cloths, line muslins, gauzes, Leghorn bonnets. Cashmere shawls, gold and silver plate, jewelry, watches, millinery^ embroidery, and an immense variety of other articles, which we shall con- tinue to import, let the tariff be regulated as it may, the whole will amount to a sum, perhaps equal to our exports at the pre- sent or any probable future prices. I hope this statement will remove Mr. Cambreleng's apprehensions, and those of his nu- merous friends and well wishers. " England," says Mr. Cambreleng, " which has now the " largest portion of manufaturing population, with all her pro- *' hibitions, bounties and monopolies, did not increase her ma- *■' nufactures in one hundred years^ as much as zve have done in " thirty.'''' For the manufactures of the united states, I shall go back to 1790 and extend no farther than 1820, which will embrace Mr. Cambreleng's " thirty years." In the former year the population of this country was about 4,000,000. Estimating the consumption of the nation, of ma- nufactured articles, at the low average of 20 dollars per head, the total would be, §80,000,000 Deduct imported manufactures, 16,372,000* Consumption of domestic fabrics, ^63,628,000 In 1810, according to the returns of the marshal's, the manu- factures of the united states v/ere, gl 72, 761, 977 Allowing 50 per cent, increase from that period, equal to 86,380,988 They were in 1 820, about g259,142,965 Deduct amount in 1790, 63,628,000 Leaves a total increase in " 2>0 years'''' of §195,514,965 According to Mr. Cambreleng, this exceeds the increase of English manufactures in " one hundred years y Mr. C. will be petrified with astonishment to find that the * Seybert's Statistics, page 158. I here take into view all the articles subject to ad valorem duties, which include nearly all the manufactures imported,,^ EXAMINATION OF THE TARIFF. 545 increase of a single manufacture^ not in " one hundred years," but in about forty ^ has been nearly, if not fully equal to the above. The cotton manufacture in England, in the year 1783, amount- ed to sterling 960,000/.* Whereas in 1812, it was 29,000,OGO/.t I have no exact statement of its extent in 1820, and must therefore have recourse to an estimate. Of the data on which it is grounded, the reader must judge. The cotton imported into England in 1811, was, 326,141 bales:}: and the consumption in 1 820, was 470,000<§ I have no means of ascertaining how much was exported in the former year, but presume at least 26,000 bales. This would leave for the consumption about 300,000. The weight is, I have reason to.believe, considerably heavier than formerly ; it is there- fore probable that the consumption in 1820 was 66 2-3d per cent, more than in 1812. But only supposing the manufacture to have increased one half, which must be considerably below the real fact, it amounted in 1820, to Sterling /.43,500,000 Deduct, in 1783, 960,000 Leaves an increase in 37 years, 7.42,600,000 Equal to about §186,000,000 Several years after the commencement of the reign of George III. it amounted only to 200,000/.|| Thus it appears that this manufacture increased in Great Britain between 1763 and 1783, from 200,000/. to 960,000/. — between 1783 and 1812, from 960,000/. to 29,000,000/. and between 1812 and 1820, to 43,000,000/.; that is to say, about five fold in 20 years — and about 40 fold in 37. Whereas all our manufactures united increased in Mr. Cambreleng's *' 30 years" only three fold. So much for his accuracy and the dependence to be placed on his vaunted work. Let it be noted, moreover, that our population has increased from 1790 to 1820, about 140 per cent ; that is, from 4 to about 19,600,000. Whereas the increase in Great Britain from 1790 to 1812, was only about 20 per cent. In the former year it was 10,242,000 ; in the lat- ter 12,353,000.** * Macpherson's Annals of Commerce, Vol. 4. page 16. j Colquhoun on the wealth, power and resources of Great Britain, page 91. 4 Seybert's Statistics, page 91. § Price Current of Bolton, Ogden and Co. Liverpool, Jan. 13, 1821. jt Macpherson, vol. iv. page 132. ** Colquhoun, page 10. 69 ^46 STAICTURES, &C. It may be supposed that the increase of the cotton branch has impaired that of the woollen. The reverse is the fact. The woollen manufacture in 1783, was 16,800,000/.* Whereas in 1812 it was 26,OOo',000/.t NECKER. Philadelphia^ Nov. 21, 1821. * Macpherson, vol, iv. page 15. t Colcjuhoun, page 91. FIMIS, INDEX. Aberdeen, instructive cases of, . . . . 344 Acts of Congress, chronological view of, . 311, 12, 13, 14, 15, 16 Advantages to Great Britain of the restrictive system, , 47 Advantages of encouraging manufactures, . . 133 Agricultural nations, disadvantages of, . . 110,112 Agricultural and manufacturing districts, in England, com- parison of, . . . . . . .64 Agricultural labour, extraordinary production of, . 476 Agriculture, duties for the protection of, . 149,210,370 Agriculture injured by the depression of manufactures, 140, 143, 385, 439,479 Agriculture, how benefited by manufactures, . 109,111,136 Alexander I's. fostering protection of Odessa, . . 398 American manufactures, perilous situation of, in 1816, . 135 American policy, enormous encomiums on, . .248 Anderson on National Industry, sound maxims from, . 49 1 Animals and animal and vegetable food, export of, . 442, 473 Appeals, pathetic, but ineffectual, to Congress, . . 145, 305 Austria, prohibitions of, . . . . .193 Baltim^^re, memorial from the manufacturers of, . 280 Barbary powers, disbursements for the, . . .215 Bank of North America, charter of, repealed, . . 271 Banks, misconducted, . . . . .231 Banks, operation of the, ..... 425,6 Banks, mismanagement of, assigned as the cause of the gen- eral distress, ...... 323 Banking capital of Pennsylvania, increase of, in 1814, , 323 Blankets for Indians, deficiency of, . . . . 29 1 Bounties, considerations on the subject of, . . 123,124 Bounties and premiums bestowed by Frederic of Prussia, . 60 Bread stuffs, immense importation of, into England, . 445 British colonies, poverty of the, . . . .174 British merchants benefited by protection of American ma- nufactures, . . . . . '. 146 British policy compared with that of the United States, . 48 British navigation act, attempt to coerce the repeal of, 368 Brougham, Henry, on the ruin of American manufactures, . 143 Brown, Gen. Jacob, sound views of, . . . 432 Calamities of immigrants in 1819, . . . 379 Cambreleng, Mr. various errors and mistakes of, 521, 5, 6, 7, 530, 6, 7,8,9,40, 41,44 Capital, want of, a reason for not protecting manufactures, . 4 Capital invested in cotton manufacture in 1815, . .132 Index, Capital, unsafe to risk it in manufactures, . . 431 Chaptal, sound maxims of, . . . . , 203 Chatham, lord, hostile to manufactures in the colonies, , 143 Chatham, lord, admonitory observation of, . . ,412 Circular Letter of a committee of the citizens of Philad. . 229 Citizens of the United States, appeal to the, . .193 Clothing, immense importation of, . . . 289 Commerce, depression of, ..... 385 Commerce, protection of, . 150, 154, 212, 247, 522, 533 Commerce benefited by the protection of manufactures, . 146 Commerce, alleged interference of manufactures with, . 66 Commerce of the United States, profits of the, . . 359 Commerce injured by the depression of manufactures, , 362, 3 Commerce of the United States, reflections on the, . 351 Commerce, fostering care of, by Congress, . . 365,6,7 Commerce of the United States, injurious effects of the, 355, 6 Committee of the citizens of Philadelphia, report of, . 221 Committee of Commerce & Manufactures a com. of oblivion, 305 Committee of Commerce & Manufactures, report of the, 129, 1 39 Committee of Commerce & Manufactures, erroneous report of 287 Comparison between the state of the manufactures of the U. States and those of England, France, Russia, and Austria, 234 Comparison between American citizens and Russian subjects, 55 Compensation Bill, rapid progress of the, . . .317 Competition secures fair prices, . . . . 117 Conduct of Portugal and the United States, comparison of . 94 Congress of 1790, unfounded praises of the, . . .514 Congress, withering neglect of, . . 56,227,301,417 Congress, dilatory proceedings of, . . 309,310,311 Contempt of constituents by Congress, . . . 306 Contrasts, remarkable, .... 375,521,525 Contrast between manufactures and exports of the U. States 1 59 Contrast between the situation of the agriculturist, manufac- turer and merchant, . . . . .155 Contrast between Prussian and American policy, . 17 Cotton manufactures of Rhode Island and its vicinity, 54, 259, 505 Cottonmanufactures, report of a com. of Congress, respecting 130 Cotton, importation of, into Great Britain, . 164,492,3,4 Cotton, exportation of, into Great Britain, . . 195 Cotton manufacture, immense advantages of, 46, 77, 163, 164, 165 Cotton, domestic consumption, and export of, . .483 Cotton exported from England to China, . 497 Cotton culture, extent of the . , . . 22 Cotton manufacture, slow progress of the, . . 503, 529 Cotton, reduction of the price of, . . 189,384,385 Cotton, export of, from Calcutta, . . . 192 Cotton, Brazil and E. India, increase of the importation of, 39 1, 406 Cotton manufacture, extent of, in 1815, . 158, 504, 5, 6, 8 Cotton manufacture in the U. States, situation of, . 295 Cotton, East India, importations of, into Great Britain^ 191, 192 Index. Cotton manufacture, progress of, in 1 5 years, . . 131 Cotton, export of, for four years, . . . 189,389 Cotton, manufacture and export of, . . 355, 450 Cotton, importation & consumption of, in G. B. for five years, 487 390,3 436 353 501 496 486, 498 487, 97 394 161 161 298 244, 247 539 62 . 477 127 423 8,9 108 267, Cotton, statement of the prices of. Cottons, coarse, excessive duties on, Cotton and woollen manufactures, depressed state of the, Cotton, export of, for fifteen years, . Cotton, losses to the exporters of. Cotton, prices of, . Cotton planters, reduction of the incomes of the. Cotton, United States, imported into Great Britain, Culture of cotton, estimate of the expense of, Culture and manufacture of cotton, comparison of, . Dallas's tariflf, extracts from, Deceptions statements, .... Democratic tariff of 1789, unfounded panegyric of. Demoralizing effects of manufactures, supposed Depression of prices by glutted markets, Draw^backs, reflections on. Distress, general, alleged causes of the, Distress, intense, after the revolutionary w^ar, . Diversity of talent finds employment in manufactures, Domestic manufactures alw^ays ultimately cheaper than foreign, 1 1 7 Domestic market preferable to a foreign one, 109, 1 10, 344, 49 f Duties on teas, wines, &c. .... 76 Duties, low, in United States, after the revolutionary war, 266, 273 Dutch, wise policy of the, .... 442 Duties, double, repealed, ..... 263 Duties for protection of agriculture, compared with those for the protection of manufactures. East India cotton, importation of into Great Britain East India muslins as fine as any in the world. East India indigo, immense increase of, . East India trade, vessels engaged in the Edict of Nantz, consequences of repeal of the, . Elizabeth, Queen, compounds with her bondsmen, . England, great advantages of, . Europe, long-continued sufferings of. Examination of the new tariff, strictures on the. Exaggeration, extravagant, .... Excise law, unproductiveness of the Excise law, impolicy of the, .... Excise not possible to be collected. Exports, average of, for 20 years. Exports, domestic, for 1 5 years, statement of. Exports from the United States, for 30 years, Exports of the United States, for 1815, . Exports for 1819, extracts from the, . Exports, immense, to the U. S. after the revolutionary war, 266, 7, 8 375 90, 191 192 407 427 448 182 11 13 511 536, 542, S 285 284 412 216 355 357 157 336 263, Index. 548. Exports of United States not adequate to pay for imports, . 1 3S Exports of 1804, extract from the, . . . 287 Exportation of specie, effects of the, . . . 429 Extortion, calumnious charge of, against the manufactu- rers, . . 72,73,145,168,238,337,342,437,438 Fable of the belly and the members, commentary on the, 37 Farmers ol the United States, address to . . . 409 459, 60 151 115 458 138 189 294 437 239 336, 343 215 Females and children employed in manufactures, Fish, dried or salted, bounty on. Flax and hemp, manufactures of, in the United States, . Fleeces, weight of, . Florence owed her prosperity to the woollen manufactures Flour, export of, for four years, ... Flour, beef and hemp, prices of during the war. Flour at the Havanna, fluctuation of the price of. Flour, extraordinary rise of, . Food and drink, consumed in Philadelphia, amount of, Foreign intercourse, expenses of, France, slow progress of manufactures in, . . .182 France and Spain, supposed case of, . . ,. 82 France, view of the prosperity of, . . . .217 France, view of the policy of, . . . . 218 Frederic of Prussia, policy of, . . . .57 Fi-eedom of trade, pretended, destitute of reality, . 245 Free trade of United States, ruinous consequences of, . 266 Fruits of the earth, consumed by manufacturers, . 335 Funding system, operation of the .... 285 Furnaces prohibited to be erected in British America, . 143 Georgia and South Carolina, prostrate state of, . .371 Gerry, Eldridge, his indignation at the proposition of the secretary at war, , . . . .291,2 Government of United States, a government of opinion, . 386 Grain, consumption of, in England, . , . 331 Grand Jury of Newcastle county, presentment of, . . 98 Great Britain would derive benefits from the protection of American manufactures, ..... 386 Great Britain, policy of, . . . . . 41 Great Britain, prohibitions of, . . . 193,205 Guilt and pauperism, more prevalent in agricultural than in manufacturing districts, ..... 64, 68 Hamilton, Alexander, admirable maxims of, 16, 45, 203, 283, 4 Hamilton, Alexander, encomiums on his report, . 99, 283 Hamilton, Alexander, his opinion of the necessity of protect- ing manufactures, . . . , . . 143 Harmony, settlement of, its sound policy, , . 12 Harmony, instructive case of, .... 345 Havanna, reduction of the price of flour at the, . . 437 High prices not disadvantageous, . . . . 233 House rent, depreciation of, in Philadelphia, . . 227 Identity of interest of the different parts of the U, States, 121,413 Lidex. Immigrants, tables of, .... 451,3,4,467 Immigrants, advantages to be derived fro|n, . 380, 1, 2 Immigrants, encouragement of, by England and France, 376, 7, g Immigrants, numbers of, into the United States, . .378 Immigrants from St, Domingo, wealth imported by, . 286 Immigration, advantages of, . . • . . 448 Importation of clothing, immense, •• . . 289 Imports of the United States, . . 202, 280, 285, 358 Imported articles, rise in the price of, . . . 341 Indians, blankets for, not to be had in the United States, 291, 45o Indigo, important facts respecting, . . • 407 Inspections oi manufactures, remarks on, . . . 138 Insurrection in Massachusetts, .... 270 Iron, manufactures of, in the United States, . . 1 15 Italy depressed by the introduction of foreign manufactures, 39 Italy, effects of manufactures on the state of, . .182 Jefferson, Thomas, character of, .... 276 Jefferson, Thomas, error of, . . . . . 276 Jefferson, Thomas, retractation of, . . . 277 Labour, high price of, an objection to manufactures, . 429 Landed interest, liberality of, asserted, . . . 241 Landholders, immense advantages of, . . 330,1,2 Leather manufactures, extraordinary profits of, . . 46 Lincolnshire, sheep raised, and wool shorn, in, , . 457 Linen manufacture, extraordinary profits of, . . 46 Liverpool merchants, advices from, 393, 4, 5, 488, 9, 90, 5, 8 Low prices no advantage to a nation, . . . 233 Machinery, British, immense advantages of, . .184 Maxims of Adam Smith, refutation of, ... 34 Manufacturers of United States and of Europe, comparison of, 279 Manufactures sacrificed to revenue, . . . 411 Manufactures, strong inducement to protect, . .138 Manufacturers divested of employment, . . . 469 Manufacturers, disadvantages of the, . . . 438 Manufactures of the United States, extent of, in 1810, . 167 Manufacturers converted into agriculturists, . 54, 441 Manufactures, duties on, ..... 327, 8 Manufacturers, combination against, . . . 274 Manufactures, objections to, ... . 62 Manufactures, various important recommendations of, 104, 105, 106, 107 Manufacturers, calamitous state of, . . . 140 Manufacturers and planters compared, . . .54 Manufactures of Flanders, competition with, . . 143 Manufactures sacrificed to commerce, . . .351 Manufactures of Philadelphia and vicinity, decay of^ 222, 223, 224 Manufactures, U. States, pretended not to be ripe for, . 430 Manufactures, General Brown's argument for, . . 432 Manufactures immensely advantageous to agriculture, . 349 Manufactures of cotton, wool, flax and leather, profits of, 48 Index. Manufactures carried on in the United States Manufacturers, unheeded ruin of, Manufacturing establishments, destruction of, Massachusetts, insurrection in, . Massachusetts' Bank, incorporation of, Mediterranean commerce, act for the protection of, Memorials to Congress, pathetic, but disregarded, 299, 115 ,300 300 270 . 272 151 300, 301, 302, 303 79 Memorial to president of the United States, Memorial from Oneida county, on the ruin of manufacturing establishments, . . . . . .139 Memorial to Congress, from the Pennsylvania society, for the encouragement of manufactures, . . . 237 Memorial from the manufacturers of Baltimore, . 280 Metallic Medium, reduction of the, . . .428 Methuen treaty, facts connected with, . . . 89, 90, 9 1 Misery, definition of, . . . . , 42 1 Misrepresentation, most outrageous, . . . 534 Missouri question, tedious debates on, . . .310 Monopolies deprecated, . , . . . 241 Monopoly, correct definition of, . . . . 243 Monopoly, fallacious idea of, . . , . 116 National prospei'ity, erroneous assumption of, . . 248 National independence connected with the prosperity of manufactures, . . , . , .119 Naval department, expenses of, . . . . 215 Navigation act, attempt to enforce the repeal of, . .152 New inventions, encouragement of, . . . 128 New York, distresses of, . . . , .418 New Olive Branch, . . . , , 253 Non-importation act, proposal to suspend, . . .291 Objections to the protection of manufactures, . . 528 Odessa, immense increase of, ... . 398, 9 Oneida county, miemorial from, . . . . ' 139 Owen of Lanark, calculations of, respecting machinery, . 184 Paper manufacture, extraordinary decay of, . . 224 Patterson, manufactory at, rise and downfall of, . . 527, 8 Pauperism and guilt, more prevalent in agricultural than in manufacturing districts, .... 64 Paupers in England, number of . . . ,47 Pennsylvania, depreciation of real estate in, . . 321 Pennsylvania, distresses of, in 1809, . . 321, 415, 16, 17, 18 Pennsylvania, wise law of, ... . 282 Pennsylvania, manufactures of, . . . . 324 Persons employed in manufactures in Philad. and Pittsburg, 295, 6 Petitions^ and memorial to congress, not read in the house, 306 Philadelphia manufactures, decay of, . . 222, 223, 224 Philadelphia and Pittsburg, distress in, . . 319, 320 Pittsburg, calamitous state of, . . 300, 302 Pittsburg, disadvantages of, . . . . . U Ind^x, ro, Pittsburg price current, ..... 447 Plaster of Paris, act regulating the importation of, . 151, 367 Policy of Portugal and the U. States, similarity between, 94 Policy of the United States, view of the, . . 10,15,259 Policy of the United States, compared with that of England, 48 Policy, sound and liberal, of Frederic of Prussia, 57, 58, 59, 60 Policy of the United States, contrasted with that of Russia, Policy of the U. States, pernicious even to Great Britain, Policy, subtle, of the British government respecting the colo nies, ....... Political economy, importance of, . Political economy, principles of, . . . 25, 1 Poor taxes in England, .... Portugal, reflections on the case of, . Portugal, impressive and irresistible case of, Portugal exhausted of her specie by the Methuen treaty, Poverty of the British colonies. Predictions, awful, literally fulfilled. Premiums, reflections on, .... President of the United States, memorial to, President of the United States, his views of the distress of the manufacturers, ..... Prices, reduced, disadvantages of, . Price of manufactures, reduction of, in consequence of pro- tection, ....... Products of the earth, rise in the price of. Prohibitions of rival articles, remarks on. Property of Harmony settlement, wonderful increase of. Prosperity of Portugal, under the restrictive system. Protection of agriculture and manufactures, contrast be- tween the ....... Protection of manufactures not a monopoly, Protection of domestic industry, enquiry into the, . Protecting duties, remarks on. Providence, cotton manufactories in and near, Public securities, depreciation of the, Quarterly Review, important extracts from, 34, 35 Raw materials, pi'ohibition of the export of, Raw materials, consumption of, . Raw materials, market for, destroyed. Report of a committee of congress, impolitic. Report of a committee of the citizens of Philadelphia, Restrictive system, and its opposite, supposed case of, Restrictive system enforced from the earliest periods of h Revenue, mode of promoting the. Revenue promoted by the encouragement of manufactures, Revenue, diminution of by the war, . Revenue, danger of the, an assumed reason against the pro tection of manufactures, .... Revolution of France, one of the causes of, ro 307 78 178 17 171 47 93 89 91 174 199 126 79 265 447 435 340 123 347 90,91 209 241 514 122 5-4 272 6, 37, 38 123 333, 475 455 382 222 83 istory, 35 202 129 411 74 180 Index. Rise of price, by scarcity, ..... 477 Rise of price, not extortion, .... 239 Rousseau, sound political maxim of, . ... 282 Ruin of the prosperity of Portugal, by the Methuen treaty, 90 Russia, prohibitions of, . . . . .194 Russian tariff, extracts from, . . • . 51 Russian policy, . . . . . .50 Russian policy contrasted with that of the United States, 307 Saxon blue, invented by the Hugonots, . . . 449 Schemes of foreign m.anufacturers to destroy American ma- nufactures, . . . . . . .135 Secretary of the Treasury, his views of the distress of the manufacturers, . . .... 265 Secretary of the Treasury, sound maxim of, . . 452 Seminole war, tedious debates on the, . . . 310 Shays, insurrection of, . . . . . 270 Sheep and lands in Great Britain, .... 457 Smith, Adam, fallacious maxims of . 14, 18, 19, 26, 30 Smuggling, danger of, assigned as a reason for not protect- ing manufactures, . . . . 75,218,219 Soldiers perished in Canada for want of comfortable clothing, 293 South Carolina and Georgia, prostrate state of, . . 371 Southern members of Congress generally voted for low du- ties on cotton goods, ..... 70, 7 1 Spain, Ireland, France, and the United States, policy of, 500 Spain and France, supposed case of, ... 82 Spanish restrictions on importation of bread stuffs, . 47 1 Speaker of the House of Representatives, duty of the, , 314 Specie, enormous exportation of, . . . 427, 8 Specie, exportation of, . . . . . 269 Spectator, extract from the, . . . . .178 Specie of Portugal drained away to pay for British woollens, 91 Starke, Gen. unfeeling conduct of Congress to, . .316 Swiss, application of, for lands, .... 382 Tariff of Russia, extracts from, . . i .51 Tariff of the United States, extracts from, ^ . 76, 207 Tariff of 1 804, extract from, ..... 288 Tariff of 1789, extracts from, . . . . 278,280 Tariff of 1789, utter impolicy of, . 274, 517, 18, 19, 541 Tariff, Mr. Baldwin's, view of, . . . . 462, 3 Tariff, British, extracts from, ... 42, 43 Tariff, features of a sound and of a pernicious, . . 277 Tariffof the United States, impolicy of, . . .211 Tariff of 1789, review of, . . . . . 281 Taxing the many for the benefit of the few, . 205, 327, 434 Taylor, Col. John, heterodox opinions of, . . 297 Teas, enormous duties on, . . . 76,150,366,524 Tender Laws enacted in New Hampshire, . . 269 Tobacco, snuff, and segars, importation of, . . . 403 Tobacco, reduction of the price of, . . . 404, 5 Index. Tobacco and snuff, prohibitory duties on, . . I 371 Tobacco, export of, for four years, . . . 189 Tobacco, East India, importation of, . . . . 405 Tobacco trade, sound reflections on, . . . 403 Tobacco, importation of, into the United States, . 52 1 Trade, unrestricted, ruinous consequences of, . . 86 Trade will regulate itself, fallacy of the maxim» . . 81 Transition to a state of peace assigned as the cause of public distress, ...... 325,423 Tonnage of the United States, . . 153,213,369,524 United States, situation of the, in 1819, ... 197 United States, rapid decline of the, . . . . .201 United States, immense advantages of the,' . . 414 United States, situation of, from the peace of Paris, . 266 United States, depressed state of the, . . . 415 United States, situation of the, at the close of the late war, 197 United States, situation of the, at the close of the revolution, 261 United States, flourishing situation of, during the French re- volution, ...... 175 United States, causes of the distresses of the, . . 96 United States, disadvantage of the interior of the, . 304 United States, great advantages of the, . . 226, 274 United States, prosperity of the, dependent on the calamities of Europe, . . . . . . 15 United States policy, reflections on the, . . . 290 United States, calamitous state of, 10, 24, 80, 95, 230, 261, 409 Ustariz, sound views of, .... . 264 Vacant lands, an assumed objection to the encouragement of manufactures, ...... 68 AVages in England often as high as in the U. States, . 430 Wages high, an assumed objection to the encouragement of manufactures, . . . . . .67 Washington, Gen. complains of the proceedings of Congress, 314 War in Europe, presumed necessary for our prosperity, . 499 Western country, calamitous state of the . . 195 Wheat and flour excluded from England, when below a cer- tain price, ....... 400 Wheat and flour, reduction of the price of, . . 397 Wheat and flour, exportation of, from the U. S. for 30 years, 446 Wheat, extraordinary rise in the price of, in England, . 445 Wheat and flour, export of, for 1 7 years, . . - 397 Wheat, flour, Indian com, and Indian meal, export of, . 476 Wines, teas, &c. enormous duties on, . . . 220 Women and boys employed in cotton manufacture, . .158 Wool, exorbitant rise in the price of, . . . 339 Wool, amount of, shora in the United States, . 293, 455 Wool, importation of, into England, . . . 457 Woollen manufacture, advantages of, . . .167 Woollen manufacture, situation of, . . . 295 Woollen manufacture established in Portugal, . . 89 Index, Woollen cloths prohibited in Portugal, ... 89 Woollen manufactures, extraordinary profits of, . . 46 Woollen manufacture, profits of, . . . 339 Woollen and cotton manufactures, above 1,000,000 of peo- ple employed in, . . . . . . 21 WooUenmanufactures, state of, in 1816, . . .139 Yeas and nays on the vote for the duties on cotton goods, 7 1 ^ n LIBRARY OF CONGRESS 007 465 hi'- '''.lii 'I ! c< li*^lSl*l€!•'rtli■ ^.'i:!?: !iiiiiH'ii:::;ii''';'H'^'iill