iV.KlV'^^.lv'v )(:;!<:<;!; [iFCA ameuni ?Aav; ^"I/i;^ 7\ ^4r V: -GElfX^ -< .It^ >• as ■< A J '^ rYl i»l ^1 tv^^l %^-<^ o '^J'iiaDNVSOl^ :aLIFO%, v^OFCAlIFO% AWElNIVERy//, vvlOSANCElfX^ vaan-1^^ "^^^Aavaaii^- %a3AIN0]WV^ -s^tllBRARYO^ ^^HIBRARY^/ \mmi^ ^m\m\^'^ Or -n i -n O ^lOSANCElfj-^ Or "~ "^ O ^Aa3AIN(l]WV ^.OFCALIFO/?^ ^OF-CAllFOff^ ^(JAHvaani^ ^jo>^ ^WE•UNIVERS/A o %a3AiNn]WV C-2 ^>;,OFCAIIFO% ^^AavaaiH^ ,^\^EUNIVER5'/A o '%13DNVS01^ o %a3AiNn-3\<^ NIVERi-/^ ^lOSANCElfj^ ^^ .f them in his invaluable report. It may be boldly said, and the declaration will stand the test of critical examination, that a more valuable system of rules for pomotin^ the prosperity of nations, never existed. It will bean eternal monument to the fame of its author, who might well have said, when he published it — " Jamque opus exegi ; quod nee Jovis ira, nee ignes, " Nee poterit ferrum, nee edax abolere vetustas." " An increased degree of industry and economy, with an in- " creasing disposition to substitute the productions and manufac- " tures of our own for those of foreign countries, aftbrd a brighter " prospect; and if the spirit of the people be wisely sustained by ^^ the government, it cannot fail to overcome every remaining " obstacle." — Message of Samuel Bell, Esq. Governor of New llampsliire. " A determination on ilie part of the people to promote agri- " culture and domestic or household manufactures, and to " lessen the consumption of foreign goods of every description, "will soon relieve the community from the pressure."— Speech of William Carroll, Esq. Governor of Tennessee. " If the encouragement of American manufactures should *• have the effect greatly to increase, not the profits, but the "number of manufacturers and manufacturing establishments, "and thereby produce a competition which does not exist — " to measureably change the course of agricultural pursuits, now *' so unprofitable, by inviting the growth of, and furnishing a *' home market for, raw materials, and also a market for that sur- '^jjIus produce which has heretofore been exported, and to secure *' among us a specie currency, there can be no doubt ot its "wisdom and justice." — Speech of Richard Skinner, Esq. Go- vernor of Vermont. '* There is now no independent civil nation but ourselves *' which has not become aivakened to the necessity of protecting " its ijiternal industry: h-om the Baltic to the Mediterranean *' the effort is universal : and we cannot with impunity disregard "the admonitions which their examples inculcate. w3 comparison *' between the condition of France and this country will illustrate **the difference between wise and inefficient systems of political " economy. For more than twenty-five years France was ha- " rassed by desolating wars, and within five years she was op- " pressed by foreign armies, excited to acts of extortion by <' vindictive resentment. JVbic she supports a circulating medium "in gold and silver coins; her agriculture, arts and manufac- *^ures are flourishing; her commerce is reviving ; and both ex- " cite the jealousy of her neighbours and rivals; her revenue " exceeds her expenditures, and her taxes are diminishing. " Excepting the short period of the last war, we have enjoyed " peace, [for nearly 30 years] and for most of the time have sup- " posed ourselves to be prosperous ; hntthe acquisitions of which " we have boasted for 20 years, are vanished, or are invested in un- " productive property, which is daily diminishing in value. Our 'industry is becoming languid, our currency consists of notes " which are representatives of our debts due to banks. Even usu- " 17 is less profitable than heretofore. Our national debt exceeds f what it did when the present government was first organized, f including the debt of the revolutionary war, and the state " debts which were then assumed ; while our revenue is un- " equal to our annual expenses, on the most reduced establish- "ment which we can make.'' — Message of Oliver Wolcott, Esq. Governor of Connecticut. " The excess of the products of the soil beyond the con- " sumption of the agricultural interest, must either find a sale " in the home, and the foreign markets, or be lost to the pro- " prietors. To rely on foreign markets is to expose ourselves to <• the caprice of foreign policy, and to commit primary interests to " the guardianship of rival nations. We therefore must consult " the substantial and permanent prosperity of agriculture, by "providing for the domestic consumption of its productions ; " and this can only be accomplished by the dense population "of our manufacturing towns, and populous cities. And it is •' indeed highly satisfactory to witness the growing prosperity " of the manufacturing interest, after the blow which it re- " ceived on the termination of the late war. In its fabrics, its " consumptions, and all its operations, it stimulates agricultural " industry, by purchasing its productions, and administering to " its accommodations." — Message of Dc Witt Clinton, Esq. Governor of New York. " The limited demand for, and consequent low prices of, our " agricultural products in foreign markets, cannot fail to sug- " gest the necessity, as well as the /lolicij, of promoting domestic '■'■manufactures, which, if firofierly encouraged, would secure a ^^sujficient home market for all our surjilus firoduce. Whatever *' may be expected from legislative enactments, whether by the " national or state governments, in aid of domestic industry, no "fless is to be hoped from the influence of examples that shall "tend to eradicate the firejudiccs and unnatural predilections of *' those who prefer to encourage the industry of Europe and Asia^ *■'■ to that of their own country." — Message of Joseph Iliester, Esq. Governor of Pennsylvania, Dec. 7, 1820. The President of the United States has appeared in the lists on the same side of the question, but. not quite so decidedly. His sentiments, however, admit of no other explanation, than is analogous to those of the governors. For can any reason be offered in support of an object, more cogent than the one he gives in favour of '* the hicrcase of domestic manufac- tures,^'' that thereby the " dependence of the several parts of the union on each other, and the strength of the union will be proportionally increased ?" " It cannot be doubted, that the more complete our internal *^ resources^ and tlie less dependent xve are on foreign powers y *'yor every national as rvell as domestic purpose^ the greater *^ tind more stable will be the public felicity. " By the increase oj" domestic manufactures xvill the de- " mandfor the rude materials at home be increased : and thus *' will the dependence of the several parts of the union on *' each other, and the strength of the union, be proportionally " augme7ited" — President's Message, December 20, 1821. The secretary of the treasury, too, has added the high sanction of his official station to the Hamiltonian theory, as may be seen, page 88. There is, however, a formidable phalanx in con- gress, who are still hostile to it, and who may perhaps procrastinate for a season, the adoption of any effi- cient measures predicated on it. But it can scarcely be doubted, that they will ultimately, and at no very distant day, yield to the force of public opinion. And short as is my probable tenure of life, I indulge the fond hope of beholding established here a permanent system, similar to that which has repaired the losses, healed the wounds, and not only restored, but greatly magnified the prosperity of France, and enabled Eng- land to decide the destinies of half the globe — the an- tipodes of what we have " felt," and what Holland, to borrow a figure from Mr. Cambreleng, " feels in every limb." The progress that has been made is highly encou- raging, particularly when we consider the formidable array of hostile names, among which are to be reck- oned some of the most celebrated in Europe — Adam Smith, Say, Ricardo, Sismondi, &c. &c. It required about thirty years to arrest the career of the accursed slave trade, one of the foulest disgraces of the human race, notwithstanding its glaring and fla- grant atrocity, and notwithstanding the united efibrts of hundreds of the wisest and best men of the last and present century. Compared with this slow pro- gress, the spread of these opinions, is truly surprising. Powerful auxiliaries have recently enlisted them- selves among the opponents of the theory of Adam 8 Smith. I mean the Editors of the Quarterly Review, who, in the forty-eighth number, ha- e, in a most mas- terly and unanswerable essay, utterly demolished the basis on which that theory rests — that is, the fa- cility with which talents and capital can transfvr them- selves from one branch of industry to another, which the doctor calls " a collateral branch. " This is the key- stone on which the whole strene;th of the edifice rests. The burden of Dr. Smith's great work is the im- mense advantage to be derived from free and unre- strained trade, which is to produce a millennium in trade and commerce. But he admits, what is obvious enough, that " were those high duties and prohibitions taken away at once, cheaper foreign goods of the same kind might be poured so fast into the home market, as to deprive at once many thousands of people of their ordinary employment and means of subsistence.''''^ The qualifying " at once'''' answers little purpose ; for whether they are removed " at once," or gradually, the effect is ultimately the same, to supersede domes- tic industry. There is only the difierence that exists between the operation of slow and violent poisons. For this most serious evil, he has provided what he calls a remedy, of the efficacy of which a moderate capacity can judge. " To the greater part of manu- factures," he says, " there are other collateral manu- factures of so familiar a nature, that a workman can easily transfer his industry from one to the othery And further—-" the capital of the country being the same, the demand for labour will be the same, though it may be exerted in different places and for different occupa- tions." Over this fanciful theory, the Quarterly Review has gained a complete triumph, and put it down for ever by a train of irresistible reasoning, a master- piece of eloquence. And surely the most ardent admirer of Dr. Smith's theory, in his utmost glow of enthusiasm on the subject, will admit, if " many thousands of peo- * Wealtli of Nations, vol. 1. p. 3^:8, /?/(!?" are " deprived of their ordinary employment and means of subsistence^^"* whcthei ■' at once^"" o» > ciiiy given time, " by pourinii^ cheaper goods of the same kinds into the home market^'''' thai the advantaeje of in- troducing *' cheaper goods," even if these " collateral manufactures^^ can be found, is very problematical. But if there are no such " collateral manufactures," then the introduction of the " cheaper goods" is a Pan- dora's Box, fraught with curses to the community in which the theory is carried into operation. For the satisfaction of such readers as may have neither leisure nor inclination to peruse the whole of this elaborate review, I tsubmit a few extracts, which display its spirit and cogency. " The transition from one description of labour to an- " other, would not be easy. A jnan accustomed for a num- " ber of years to one particular kind of work, cannot readilu *^ pass over to another altogether different Persons, espe- ** cially of the class of life of artizans and labourers, are slow ** to form and slow to change their habics. The skill which *' they tardily acquire^ they tenaciously adhere to. A far- *' iner's labourer will not readily becoiTie a mechanic ; a silk *' weaver be made a cutler ; a lace maker, or glover be con- " verted into a maker of woollens. "Not only would a change of occupation be requisite, but " also of the seat of industry. The Norfolk farming la- " bourer might have to make hose in Leicester or Notting- *'ham; the East Lothian cottager to weave muslins at ** Glasgow, or checks at Carlisle ; and the Spitalfield's *' weaver to become a japanner at Birmin^jham, or cotton *' spinner at Manchester. Whole districts of Ireland might **■ have to interchange residence with those of England and •* Scotland^ the north with the south, and the east with the ** westy with the rapidity of a horde of Tartars. There *' must be a transference of the disengaged people to the ** seats of retained manufacture, or the retained manusac- " ture must extend to their residence. The latter is scarce- " ly practicable, when the convenience or necessity is con- " sidered of concentration, in manufacturing industry, of " the several connected processes and branches."* * Quarterly Review, No. 48, page 285, 2 10 It may be strongly doubted whether the world has ever witnessed a more signal overthrow of any plau- sible error, than the preceding paragraphs exhibit. Our experience in 1784, 85, 86 and 87, seals the con- demnation of this theory. *' Cheaper goods" were im- ported than we could make. Many " thousands of our citizens" were "at once deprived of their ordinary employment and means of subsistence," and devoted to idleness and pauperism, and exposed to the seduc- tions of vice and guilt. There were none of those " collateral manufactures" to which they could " trans- fer their industry." And although " the capital of the country remained the same^^'' surely no man will have the hardihood to assert that ^^ the demand for labour was the sarne.^"* Our recent experience equally establishes the perni- cious consequences of the system. A large portion of capital employed in the manufactures which have been destroyed, was annihilated — but there was still a vast superabundance of capital in the country, for which employment could not be had — yet "the de- mand for labour" was so far from being " the same," that myriads of citizens were destitute of employment throughout the nation in 1817, 1818, and 1819, par- ticularly in the latter year. On the subject of protecting the national manu- factures, a mighty and pernicious error prevails. It is almost universally believed, that the struggle has been to confer on the manufacturers the pro- tection and patronage of the government, at the ex- pense of the rest of the community, and without a sha- dow of reciprocity. Nothing can be farther from the truth thun this idea, which ought to be scouted oft' the face of the earth. The true questions are, whether the agriculiurists and merchants, having for thirty years had, and still having, the legislation in their own hands, 11 itnd having protected themselves by every conceivable means, shall not impart a portion of that protection to their brethren ? And whether, for instance, the cotton < planters protected by duties from 3:i to 40 per cent. — \ the sugar planters by duties about 100 per cent.*--- the tobacco planters, secured from foreign rivalship in the exclusive possession of the domestic mar- ket, by duties absolutely prohibitory, on snuff and manufactured tobacco, shall not, from motives of shame or justice, cease to oppose a protection of 33 1-3 to the manufacturers of chintzes and woollen cloths, 25 per cent, to the manufacturers of iron, steel, copper, brass, lead, linens, &c. he. To originality this pamphlet professes little, and to elegance of style, or beauty of arrangement, no claim. On the topics herein discussed, the writer has within the last three years published seven or eight pamphlets; of course there must unavoidably be muoh repetition. • In the former edition, the duty on muscovado sugar was quoted at 40 to 66 per cent, as stated in the " New and Old Tariffs compared." This was an error, which subsequent in- fonnation has enabled me to correct. Muscovado sugar wag not quite three cents per lb. at the Havanna, January 20, 1822. Of course the duty, three cents, is about one hundred per cent. And it thus appears, that the sugar planters, who aided to vote down a duty of only thirty-three per cent, for the protection of their unrepresented fellow citizens, engaged in the manufac^ ture of woollen and fine cotton goods, are themselves protected by a duty of one hundred per cent, on a necessary of life, of which the freight and other charges ^re about fifty per cent. For the honour of human nature, it is to be regretted that such a monstrous fact is matter of record. Muscovado sugar presents one other view of the tariff, not very creditable to its framers or advocates. The qualities of this article vary very much ; some of the inferior kinds being sold at two cents and a half per lb. — others at three — and su- perior qualities at four and five. The inferior kinds are used exclusively by the poor — the superior in coffee by the middle and wealthy classes. But all are subject to the same unvarying duty. The poor therefore pay 120 per cent — while the middle and higher classes pay but 60, 75, or It)© ! Comment oft such a system is wholly superfluous. 12 And of such subjects it may be truly said — res negat arnari — contenta doceru Elaboration of style, or fas- tidiousness of arrangement would be misplaced. My reliance is wholly on strong facts and plain deduc- tions. February 4, 1822. Preface to the Second Edition, IN this edition sundry additions and improvements are mude, some of considerable importance. Further features are given of the calamitous state of Holland, from which it appears that her " brew- eries and distilleries have been immensely diminish- ed" --that her important *' manufacture of laces has teen almost entirely annihilated ;" and that the defi- cit of her revenue for 1818 and 1819, was 11,256,000 florins, equal to about S4,560,000. More recent views are also given of the prosperous state of France, from the recent report of the minister of finances. To facilitate reference to the facts herein contained, which may tje useful in future investigations of the subject, a copious index is added to the present edition. March 8, 1822. Preface to the Third Edition, The corrections and alterations in this edition are but few. I have, on further reflection and inquiry, been induced to assume our foreign commercial debt to be 12,0(10,000 of dollars, instead of 7,500,000, as in the former editions. April 2^ 1822. AN APPEAL, &c. CHAPTER I, Advantages of retrospective reviews* — Distresses oj 1817, 18, 19, and ^K)y particularly in Pennsylvania^ Withering and most culpable disregard of the pub' lie suffering by congress. Present revival of ma- nufactures. Prosperity of the manufacture of coarse eottons* Egregious error of a committee of con- gress. Distressed situation of the western part of JVew York. Testimony of the secretary of the treasury. J^riends and Fellow Citizens, In private life, it is found salutary frequently to re- view our past conduct with care and attention, in or- der to ascertain how far it has been regulated by wisdom, or been under the guidance of folly or error ; so that we may be encouraged to persevere in the right path, or shape our course from a sinister one, as the case may require. Such a procedure is equally useful in public af- fairs ; in which folly and error as frequently predo- minate as in those of individuals. If honestly and 14 fairly pursued, with the attention its importance de- mands, the enquiry can never fail to be eminently be- neficial. The neglect of it is one of the chief reasons why nations and individuals so frequently blunder on from one folly to another, to the ruin of their prosperity and reputation. At the present moment a review of this kind is peculiarly requisite. We have enjoyed peace for above seven years, after a war of very short duration, closed with honour and in prosperous circumstances. We had every reason to expect as high a degree of prosperity, as ever fell to the lot of any nation. But, that peace has not brought in its train those blessings and that prosperity with which we flattered ourselves it would be accompanied, is a truth beyond contro- versy. During a large portion of its existence, par- ticularly in 1817, 18, 1819, and 1820, we experienced a degree of distress and suffering which could not be exceeded by the calamities of war, and which in some parts of the union equalled what is felt in any portion of the civilized world. This will not appear extrava- gant to any one who reads the documents submitted to the legislature of Pennsylvania in 1819-20, by committees appointed to investigate the cause of the then existing distress. To save the reader the trouble of research, I annex a few of their features. " Forced sales of merchandize, household goods, farm- *' ing stock, and utensils, at prices far below the cost of pro- *' duction, by which numerous families have been deprived of " the common necessaries of life ^ and of the implements of " their trade. " A general suspension of labour, the only legitimate *' source of wealth, by which thousands of our viost useful " citizens are rendered destitute of the mea7is of support, *' and are reduced to the extremity of misery and despair. " 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 part of their ^' former value, thereby depriving of their homes and the ^''fruits of kihorious years, a vast mwiber of industrious 15 ^'' farmers^ some of whom have been driven to seeh-)in the un- " cultivated forests of the west, that shelter of which they *' have been deprived in their native state. " An almost entire cessation of the usual circulation of *' commodities, and a consequent stagnation of business, " which \s limited to the mere puf chase and sale oftheneces' " saries of life, and of such articles of consumption as are " absolutely required by the season. ^* An universal suspension of all large manufacturing *' operations, by which, in addition to the dismissal oi the " numerous productive labourers heretofore employed there- " in, the public loses the revenue of the capital invested ia *' machinery and buildings. " The overflowing of our prisons with insolvent debtors^ *' most of whom are confined for small sums, whereby the " community loses a portion of its active labour, and is com- " pelled to support families by charity^ who have thus been " deprived of their protectors,^ This deplorable situation of affairs, in a great state containing a million of industrious, energetic in- habitants, will bear eternal record against the unsound- ness of the policy we have pursued, by which the in- terests of the grain-growing states are most cruelly sacrificed. Their grand staple has been reduced in price, so low as, in many cases, not to afford a remun- eration to the farmers, in consequence of being exclud- ed from consumption in England, France, Spain and Portugal, from the two first of which they receive ma- nufactures, to the value of millions of dollars annually, which they are not allowed to pay for in the only arti- cle produced in sufficient abundance to equal their amount. They are precluded by their federal duties and obligations from retaliating prohibition by prohibition, as is dictated by every principle of justice. They are thus offered up as victims to a policy, which has strewed desolation and destruction among their citi- zens, blasted the prospects of thousands of them, and defeated the effect of the blessings so lavishly bestow- ed on them by bountiful nature. Some of our manufactures have received a deadly 16 wound, from which they have not revived, and, without a change of policy, never vvill.f The farmers have recently suffered equally with the manufacturers. The embarrassments of the purchasers of the public lands have been so great, and their inability to dis- charge the remaining instalments so manifest, that government found it expedient to receive back the lands, and release a number of the debtors from their engagements. The revenue, which, in 18 i 6, amounted to S36,306,874, was, in 1820, i educed to 15,005,612 dollars. Commerce has languish- ed in an equal degree with manufactures and agri- culture. To complete the melancholy picture, I will add a brief sketch from the report of the com- mittee on manufactures. — " In profound peace, with- *' out any national calamity, the country became em- " barrassed -with debts — real estate was under a rapid " depreciation — the markets of agriculture and pur- " suits of manufactures were diminished and declin- " ing — and commerce was struggling not to retain *' the carrying the produce of other countries, but our *' own. There ivasno national interest in a healthful, *' thriving condition. The nation at large was not so. " The operations of government and of individuals " alike laboured under difficulties, which were felt by " all." It is very true, however, that our prospects are brightening, and that there is every reason to hope, the worst is past. Some of our manufactures, parti- \ The potteries of the United States, were nearly all laid prostrate in 1816 and 1817", by the influx of foreign ware. There were four extensive ones in this city, which have never been resumed. An invaluable manufactory of screws, the ma- chinery of which reflected honour on the inventor and on bis country, and which might be made a source of great national wealth, has been recently sold for 8000 doIlars,^although it cost 24,000; so that instead of gaining wealth by the invention, it swept away the fruits of the hard and honourable industry of years. Such has been the case with a great variety of other manufactures, without exciting the least concern at Washington. 1^ Oularly the woollens and coarse cottons, are recover- ing — the former slowly — the latter very rapidly. Others are " dragging their slow length along," and promise gradually to revive. We have suffered the paroxysms of a most vio- lent fever — and have been greatly exhausted — but are now in a state of convalescence — not, however, from any effort on the part of the government — for, however painful the statement may be, and however discreditable to congress, whose sacred and para- mount duty it was to apply, or at least to endea- vour to apply, a remedy to this disordered state of affairs, it is a most melancholy truth, that they never adopted any measure whatever to effect this grand object. They looked with the most withering indiffer- ence on the general distress, which, for so many years, continued with extraordinary intensity. No com- mittee was ever appointed to take into consideration the state of the nation, and point out any remedial measure. The patient, writhing in agony, was un- feelingly abandoned by his physician, and the disorder left to take its course. Fortunately — but no thanks to the doctor — the vis medicatrix nature prevailed. Although the change in our situation is very con- soling, its magnitude and importance are greatly overrated. There is as much felicitation and exulta- tion as if we had attained the high degree of pros- perity which a wise system of policy could not fail to insure us. That we have not only ceased to retrograde, but that we are making advances, is undoubtedly true. But that, except in the single article of coarse cottons, we advance slowly, is equally true. And it would not be very extraordinary, from the present state of the exchange on England, if we should be once more drained of our specie, and again make retrograde movements. We are now in the situation of the crew of a vessel at sea, caught wholly unprepared in a sudden storm, 3 18 in which she has received severe injury in her masts, spars, and rig£:!;ing; has had a serious escape from shipvireck ; and been driven out of her course hundreds of miles. The storm subsides-the crew patch up their sails, rigging, he. — and get slowly under weigh. They soon forget their sufferings — sing haileluias for their de- liverance — but, not admonished by their misfortunes, make no preparation against another storm, al- though there are in the horizon strong symptoms of its approach — and, when it begins to rage, are as little prepared to meet it as before. Such is our course of proceeding. It may not be improper incidentally to notice the reason why the manufacture of coarse cottons has gained ground so rapidly. The duty varies, accord- ing to the price, from 50 to 90 per cent — and has been found absolutely prohibitory. That happy con- sequence has resulted, which such a system rarely fails to produce. The manufacture is carried on with so many advantages — the goods are so excellent and cheap — so far superior to the articles imported — and their reputation is so completely established — that the rival articles from Europe and the East Indies cannot be introduced without loss. From the present gleam of prosperity elaborate ef- forts are made to prove that our policy has been per- fectly sound and wise ; that those who believe it radi- cally wrong and pernicious, are utterly incorrect in their views ; that all the censures cast on it were unjust and unfounded; and, notwithstanding the millions of dollars sacrificed since the peace by the ruin of princely establishments, that manufactures have been adequately protected. And indeed some of our newspa- per critics and editors go so far as to assert, that our situation is highly prosperous, and that the contrary statements are purely the result of sinister views, or the wild ravings of the gloomy and discontented. To prove the utter fallacy of these gratuitous asser- tions, it would be sufficient to refer to the melancholy 19 and distressed situation of the great states of Ohio, Kentucky, and Tennessee, containing a population of l,568,564souls — and likewise to the interiour of New- York and Pennsylvania, nearly as gloomy. The aggre- gate of those parts of the two last,, widi the whole of the other three states, make nearly a fourth of the popu- lation of the union — and surely such glowing des- criptions of prosperity are utterly incompatible with the extreme suffering of so large a proportion of the whole number of our citizens. As this is a point of great importance, I must be pardoned for shedding a little more light on it. For if the assertions of these gentlemen be entitled to cre- dit, then no alteration of our system can be necessary. It is therefore incumbent on those who disbelieve in them, to remove all doubt of their inaccuracy. Should this point not be established, then all that is written on this side of the (juestion is worse than useless. At the last session of congress, there was a consid- erable diversity of sentiment on the proper means to supply the great deficiency of revenue. Many mem- bers, regarding it as disgraceful, ina time of profound peace, after six years cessation of war, to have re- course to loans, were in favour of direct taxes ; others advocated an excise. The committee of ways and means, whose proper province it was, to investigate the subject, pronounced this decision on it : — " The imposition oF an excise at this season of extreme *' distress^ would be unwise, and is not dtrmanded by the " state of the treasury. If imposed, it would be difficult to " collect: and, if collected, it would in some parts of the *' union, be in paper little available." " Not demanded by the state of the treasury, ^^ This is really a most extraordinary declaration, and proves how very superficially public bodies are in the habit of considering the subjects on which they have to de- cide, and how flippantly unqualified assertions are ha- zarded, which cannot stand the test of a moment's ex- amination. A great deficiency had occurred in the re- venue the preceding year, 1820 ; three miUions of dol- lars had been borrowed — the sinking fund had beendi- verted to discharge the current expenses— the secre- tary of the treasury's report stated a deficiency of four or five millions for the year 1821 : in a word, the financial department presented the most gloomy as- pect — and yet, wonderful to tell, the committee of ways and means had no hesitation in coming forward with great gravity, and asserting that the imposition of an excise was " not demanded by the state of the trea- sury.^^ Had there been a balance of a few millions of dollars in the treasury, or had they predicated the rejection of the proposition for an excise on "ifA17, 1818, 1819 and 1820, France was ma- king rapid advances in the high road to prosperity. The radical difference in the policy of the two na- tions is, that she regarded the employment of her peo- ple in manufactures as a grand national object, the only point of light in which it ought to be viewed. Where- 30 as the question was scarcely ever thought of here, but through the narrow contracted medium of procuring goods abroad cheaper than they could be had at home. In this way, our treasures have been lavished in China, Great Britain, France, and Germany, while so many of our own citizens were devoted to idleness, and penury, and exposed to the seductions of vice and crime. The minister of finance, in a report made on the 1st of February 1821, to Louis XVIII. thus accounts for the prosperity of France, and the flourishing state of her finances. " The fabrication of every thing necessary for the con- " sumption of the population^ being exclusively confined to *' the notion^ France has been in a situation to extend her *•' consumption, which has gone on increasing from year to *' year :" and in proof he states the consumption of " cofFee, " salt, and cotton-wool, the last year, 1820, which has pro- *' duced to the treasury an increase of revenue of 18,000,000 " of francs,"* equal to about 3,600,000 dollars. The following extracts from the speech of the King of Fiance to the Legislature at its recent ses- sion, afford a gratifying view of the prosperity result- ing from the restrictive system, and amply corrobo- rate the preceding statements. "If we take a view of our domestic state, what motives " have we not to bless Providence ! The sensible progress * " Tons les etats d'Europe, (a I'exceplion de la France), " eprouvent le meme defaut [de finances] : et pour quelle •' raison ? M. Roy, ministre des finances, repondra pour nous, " dans le rapport qu'il a fait a ce sujet, le ler Fevrier dernier a " Louis XVIII. " C/est que la fabrication de. tons lea objects " necessuires a la consommation de la nation Hant exclusive meni " reservee a la nation, celle-ci a ete en etat de faire une plus " grande conr.ommation ; et que cette consommation allait " crcissant d'annee en annee : et il a donne pour preuve cclle " des cafes, des scls, des cototis en laine, de I'annec dcrniere, qui ♦' a procure au tresor une angmentatiun de revenns de 18,000,000 " de francs.''^ Considerations snr le 2}rojet de loi concernant le nuu- veau systeme dii Royainne de Pays Has. I'ag-e 41. .'J Hruxelles, •27 Juin, 1821. 31 " of industiy, agriculture, and the arts, attests tliat of com- *'merce; and very soon new channels will, by multiplying *' the means of communication and traffic, extend the gene- "ral good to all parts of the kingdom. " The prosperity of the finances^ the intelligible exposition *' of the public accounts, and fidelity to engagements, have " consolidated public credit, and increased the resources ''''ofthe state* *' Our auspicious situation, and the return of internal and " external tranquillity, have already admitted of a diminution *■'• in one of the viost oneroxis ofthe taxes — that which marks *' reproduction in its source, by overcharging landed pro- *' pcrty. Next year those so assessed will wholly enjoy this " reduction." On the 27th of Nov. 1821, the Minister of France laid before the Chamber of Deputies his annual re- port, Avhich, after stating the receipts of the trea- sury for one year at 890,000,000 francs, and the ex- penditures at 889,500,000 francs, thus casts an ex- ulting glance at the situation of France. " Such a result of the termination of calamities, which in " any other country an age would scarcely be sufficient to " efface, evinces among us resources triumphant over the " most adverse situations. What other nation besides France " would be able, after what she has suffered, even up to "1818, by war and other unhappy circumstances, to pre- " sent in three years the spectacle which she this day offers ? " Her political engagements punctually fulfilled; her territory '•''free and tranquil ; her comw.erce and industory increasing *'■ in activity; her treasury ahvays full; her securities ad' " vancing to par ; all h^r capital in employment^ -whether to " acquire^ to construct^ to repair, or to give an impulse to *' works of public utility." Thus, we see, that while our revenue has been gradually diminishing, that of France has been rapid- ly increasing. The impoverishment of the United States by the payment for the enormous importations of 1815, 16, 17, and 18, has for two or three years past, disabled our citizens from purchasing as freely as they were wont to do. Our importations have great- 32 ly diminished, and those for a large part of the western country almost wholly ceased. The impost has in con- sequence been proportionably reduced. Every year of our experience corroborates the soundness of the policy advocated by Alexander Hamilton in his very cekbrated report on Manufac- tures, the most valuable publication on this topic, I repeat, produced in any age or nation. *' There is no truth^'' says he^ '•'• which may be 7noreJirnf " ly relied upon than that the interests of the revenue are pro- " moted by -whatever promotes an increase of national indus- " try and wealth.'^ The converse of this proposition is as true as if dic- tated by inspiration. The interests of the revenue are impaired by whatever diminishes national industry and wealth. France proves the one— -we prove the other position. The time will come when we shall feel and act upon these truths. But how long we shall continue, as we have done for years past, to waste our energies and resources, for the benefit of foreign nations, omniscience alone can determine. It remains to develop that course of sound policy which has raised France so triumphantly from her prostrate state, and enabled her to attain that high de- gree of prosperity which she now enjoys. Napoleon's tariff, now before me, excluded a large portion of those articles that could be produced in his own dominions : and most of the others of that descrip- tion were burdened with very high duties. There were above one hundred and twenty articles absolutely prohibited. In consequence, the industry of the na- tion was fully employed. It not only preserved its wealth from being squandered abroad to purchase what could be made at home, but laid other nations under contribution by its manufactures — and hence the resources of the nation were constantly increas- ing, even during the continuance of a most devour- ing warfare. Moreover Bonaparte, while engaged 33 in his extensive plans of conquest and subjugation promoted manufactures by every means in liis pow- er — and even went so far as to lend supplies ol money to manufacturers at two per cent, per annum,* to en- able them to extend iheir business. Will it for a mo- ment be supposed that this great sacrifice was made for the sake of that body of men, or that their particular in- terest had any influence over this aspiring and ambi- tious monarch ? By no means. Had they alone been concerned, they would have been regarded by him with total indifference. His views were far more profound. He patronized them — not merely for the wealth which their labour saved the country, but equally for that which it drew from foreign nations. Let us now view the system of Louis XVHL We have seen the enormous expenditure of Great Britain during the late wars, amounting to above 1300,000,000 pounds sterling, equal to about 5,700,000,OvyO of dol- lars, of which by far the major part was for the purpose of placing him on the throne of his ancestors. Never, therefore, had any nation higher claims on the grati- tude of a monarch, than Great Britain on that of Louis XVni. — and it might have been expected that he would, from motives of gratitude, have opened his ports to the manufactures of that nation, as a return for its services and sacrifices. But regard for the in- terests of his country outweighed all private and per- sonal considerations — and one of the earliest mea- sures of his administration was to renew Bonaparte's tariff", with some alterations, rendering it more severe. No apprehensions of failure of revenue deterred him from the adoption of this policy — nor of smuggling — nor extortion, nor any of those other terrific objects which exert an irresistible power over our national legislature, and have immolated so many millions of money invested in manufactures — bankrupted so many estimable men, who made such strong ap- * Mr. Cambreleng's Examination, page 102. 5 34 peals to congress — -devested of employment so many thousands, whose sole property lay in the industry of their hands — and produced that impoverishment which has arrested the nation in the career of its pros- perity. — The temptation of " buying goods abroad cheaper than they could be had at home," had no weight with him. The grand object was to secure employment for his subjects — to protect their indus- try — and to prevent the national wealth from being lavished on foreign nations. That he has been suc- cessful, the actual state of the kingdom fully esta- blishes. The celebrated Chaptal, ex-minister of the Interior under Bonaparte, lately published a most luminous and interesting view of the policy of France in regard to manufactures — a policy as foreign from ours as light from darkness — virtue from vice. "A sound legislation on the subject of duties on imports, is " the true safeguard of agricultural and manufacturing in- *' dustry. It raises or diminishes the duties according to cir- " cumstances and the necessity of the case. It countervails *' the disadvantages under which our manufactures labour, *' from the difference of the price of workmanship or fuel. « IT SHIELDS THE RISING ARTS BY PROHI- *■'• BITIONS, thus preserving them from the rivalship of *' foreigners, till they have arrived at complete perfection. " It tends to establish the national independence, and en- *' riches the country by useful labour, which, as I have re- " peatedly said, is the principal source of wealth.":]: ^ " Unc bonne legislation de douanes est la vraie sauvegarde " de I'industrie agricole et manufacturiere ; elle eleve ou di- '• minue Ics droits aux frontieres, selon les circonstances et les " besoins ; elle compense le desavantage que notre fabrica- " tion pent trouver dans le prix compare de la main d'oeuvre " ou du combustible ; elle protege les arts naissans par les pro- " hibitiona, pour ne les livrer a la concurrence avec les etrangerSy " que lursqu^lls ont pu reiinir tons les degres de perfection; elle •' tend a assurer I'independance industrielle de la France, et elle " I'enrichit dc la main d'oeuvre, qui, comme je I'ai dit plu- " sieurs fois, est la principale source des richesses." Chaptnt " sur V Industrie Fruncoise, Vol. ll.^a^e 417. Published 1819. 35 " It has been almost every where found, that rising ** manufactures are unable to struggle against cstabllsh- " ments cemented by time, nourished by numerous capi- *' tals, with a credit established by a continued success, "and conducted by numbers of experienced and skilful " artists : and we have been forced to have recourse to prohi- *' bU'ions to ivard off the competition of foreign produc- Such are the principles of the French policy on this important subject. Now behold the practice — " In the commencement, our casimers cost the manufac- *' turer twenty-seven francs per ell — and the EngHsh offered " their's to the consumer at half price. Cambrics and cali- *' coes, ill made, cost us from seven to eight francs per ell — " the English delivered their's at three : ought we, then, " to have abandoned these attempts at manufacturing supe- " riority? No. It was our duty to persist and attain to " perfection. This was the course we pursued — and we *' have arrived at such a degree of perfection that our in- " dustry excites the jealousy of the nation from which it *' has been derived. "If, during the twelve or fifteen years in which our ef- *^ forts, our researches, and our experiments were going on, *' we had not excluded competition by a!}solute prohibition, " I ask of the partisans of the fifteen per cent, duty, what " would have become of that delightful industry, which is " now at once the pride, the glory, and the wealth of " France?"! * " On a eprouve, presque partout, que des manufactures "naissantes ne pouvoient pas latter contre des etablissemens " cimentes par le temps, alimentes par de nombreux capi- "taux, accredites par des succes soutenus, exploites par un " grand concours d'artistes instruits et exerces : et I'on a ete "foixe de recourir aux prohibitions pour ecarter la concur- "rence des produits etrangers." — Idem, torn. i. xlvi. t " Nos casimirs coutoient 25 fr. I'aune au fabricant, dans le " principe ; et les Anglais offroient les leurs au consommateur, ** a moitie prix ; les percalles, les calicots, mal fabriques, nous ♦' revenoient a 7 a 8 fr. I'aune ; les Anglais les livroient a 3 fr. " Falloit-il renoncer a ce projet de conquete manufacturiere ? ' Non, il falloit persister et se perfectionner. C'est aussi la * m arche qu'on a suivie : et nous sommes arrives a un tel 36 A favourite idea with many of the French poHtical ecoiiomibts, is, that any manufacture, which cannot support itself when shielded by a protecting duty of fifteen per cent, ought to be abandoned. Such opin- ions prevail here very generally. M. Chaptal, argu- ing from past experience, the true criterion of theories, displays the fallacy of this idea, and the ruinous con- sequences which its adoption would not fail to produce. *' I go farther. Even at the present time, when these va- *' rious species of industry are in a flourishing state; when *' there is nothing to desire, with regard to the price or ' quality of our productions, a duty of fifteen per cent., " which would open the door to the competition of foreiga " fabrics, would shake to their foundations all the es- *' taMJshments which exist in France. Our stores would, in ** a few daijs^ he croivded with foreign merchandize. It would *' be sold at any price, in order to extinguish our industry, ** Our mamfactories would be devoted to idleness^ throxigh the ** impossibility yf the proprietors making the same sacrifices ** as foreigners; and we should behold the same scenes as ** followed the treaty of commerce, 1786, although it was *' concluded on the basis of fifteen per cent."* " degr6 de perfection, que notre Industrie excite aujourd'hui la *' jalousie de la nation qui nous I'a transmise. " Si, pendant douze a quinze ans qu'ont dure nos essais, nos « recherches, nos tatonnemens, on n'avait pas ecarte du con- " cours, par la prohibition, les produits etrangers, je demande *• aux partisans des 15 pour cent, ce que seroit devenue cette " belle Industrie qui fait I'ornement, la gloire et la richesse de " la France ?" — Idem, Tom II. page 431. *" Je dirai plus : aujourd'hui que ces genres d'industriesont " florissans, aujourd'hui que nous n'avons plus rien a desirer " sous le rapport du prix et de la qualite des produits, un droit " de 15 pour cent, qui ouvriroit la concurrence aux fabriques " etrangeres, ebranleroit jusque dans leurs fondemens tousles " etablissemens qui existent en France. Nos magasins seroient " remplis, en quelques jours, de marchandises importees ; on les •' donneroit a tout prix pour etouffer notre Industrie ; nos manu- " factures seroient vouees a I'inaction par I'impossibilite ou " sont les proprietaires de faire les memes sacrifices que les " etrangers, et nous verrions se reproduirc ce qui est arrive " apres le traite de commerce de 1780, quoiqu'il eut ete " conclu sur la base de 15 pour cent." Idem, page 432. 37 In April 1816, the tariff underwent a new revision, and the list of prohibited anicles was somewhat redu- ced—but it still included three fourths of the most important manufactures and productions, with which the French are able to supply themselves. I annex a list of the principal Articles of which the importation into France was pro- hibited by the tariff of 1816. Manufactures ol stt-el, except instruments and mercery Manufactures of bronze Copper and brass, polished Pig iron, under 400 kilo- grames Wrought iron in bars, and anvils and other large pieces Common sea salt Silk stuffs wrought with false silver, or false gold Silk stuffs, mixed with thread Gold and silver gauze Silk lace Wove cotton goods Woollen cloths All kinds of muslins, dimi- ties, Marseilles, muslinets, and all other twilled stuffs made of cotton Shawls and handkerchiefs Manufactures of plated gold and silver Manufactures of skins and leather Morocco leather Crockery and Liverpool ware Tobacco in the leaf, or in stems, except for the regie Wove stuffs of cloth, fear- noughts of all kinds and qualities. Sht^et iron, and old iron Watches and clocks of all descriptions Medals, counters, and pocket pieces Prepared medicaments, pul- verized substances, and pharmaceutical prepara- tions Kerseymeres and other light stuffs Rum and taffia, made of molasses, except from the French colonies Rack, made of rice All other kinds of spirits, made of grain, apples, &c. Cotton hosiery Buttons of all sorts Playing cards Nails Cotton yarn without any dis- tinction of numbers All kinds of cutlery Wrought rock crystal Manufactures of brass, cop- per and tin Gunpowder Molasses, except from the French colonies Carriages, new or old, mount- ed or otherwise Soap, white, black or mar- bled, &c. &c. Sic. 4C9152 38 In 1817 the French tariff was again revised, and some other alterations made in it, but all the impor- tant articles remain prohibited to this day — as, wool- lens, cottons, sadlery, manufactures of iron, steel, brass, copper and tin, gunpowder, fire arms, pottery, soap, refined or loaf sugar, tobacco, (except for the regie) &c. &c. &c. While Congress looked with perfect sang Jro id on the annihilation of so many of our manufactures, the sacrifice of the millions of dollars invested in the ma- nufactories, and the bankruptcy of the proprietors, in 1816, 1817, 1818, 1819, and 1820, and, shocking to relate, and disgraceful that it should have to be re- lated, did not even condescend to hear the humble supplications of the sufferers read, what a contrast is formed by the preceding views of the practice and policy of France on this point, and the humane considerations by which that policy has been regu- lated ! The contrast is highly honourable for France. But what is it for the United States ? The question will not bear to be answered. Cotton yarn may be considered as a raw material ; and as, on general principles, raw materials are usually admitted duty free, or at very low duties, it might perhaps claim a right of admission on very easy terms. But there are no less than 200,000 persons engaged in the manufacture of it in France — and this consideration has induced the government to prohibit it altogether. Behold the reflections of Chaptal on the subject, and let them be contrasted with the opi- nions sported in, and the course pursued by, con- gress. — " Cotton yarn forms the raw material of our numerous " laces and calicoes. If we freely open our ports to this mu- " terial which has undergone but a single operation, behold *' the infallible results ! One hundred millions [of livres, equal to about eighteen millio7is of dollars'] " at present productive, *' tvoidd he destroyed for the spinner^ the mamfaclurer^ and '■^ for France — because it is invested in buildings, utensils, 39 " and machinery, adapted to this purpose alone — txuo hini- *' dree! thousand persons tuoidd be devested of employment — *' 80,000,000 [oflivresj ot manual labour would be lost to *' France, — and commerce would be deprived of one of its " principal resources, which consists in the transportation of *' cotton wool from Asia and America to France. " Let it not be presumed that I deceive myself. I am *' well acquainted with the state of our cotton spinning, and *' that of the two neighbouring countries. In France, it is *' true, manual labour is cheap. But, on the other side, *' more extensive establishments, supported by large capi- *' tals, afford advantages against which it is impossible for *' us as yet to struggle. To this must be added, that the " English spinning machinery has been in use for 60 years ; " that the proprietors are indemnified for all the expen- " ses of their first establishment ; that the profits have been " converted into new capitals ; whereas ours are of recent " formation, and the interest of the first investments ought *' for a long time to be computed in all the calculations of *' the profits of the manufacture. " The English manufacturer^ reimbursed for hisfrst in- " vest7nents^ and possessing a large capital^ is able to make " sacrifices to overwhelm a rival establishment. Whereas " the French manufacturer is destitute of defence, unless *' protected by the tariff. To enable the industry of one *' country to compete with that of another, it does not suf- " fice that the productions be of the same quality — it is ne- *' cessary that the process of the manufacture present on " each side the same advantages."* * " Le fil de coton foi'me la matiere premiere dans nos nom- " breuses fabriques de tissus et d'impression sur toile ; ouvrez la •' porte a ce produit d'une premiere operation, en voiciles resul- " tats infaillibles : plus de cent millions aujourd'hui productifs, *' vont etre aneantis pour le fileur, le fabricant, et la France ; " parce qu'ils ne consistent qu'en batimens, usines, et machines " appropries a cc seul usage ; unc population de deux cent mille " ouvriers va etre d'esheritee de son travail ; environ quatre vingt " millions de main d'oeuvre vont etre perdus pour la France ; le " commerce sera prive d'une de ses principales ressources, qui *' consistent dans le transport des colons de I'Asie et de I'Ame- " rique en France. " Et qu'on ne croie pas que je me fasse illusion ; je " connois I'etat compare de nos filatures et de cclles de "deux pays voisins : ici une main d'oeuvre plus economi- 40 , • Against the importation even of coals, duty free, M. Chaptal presents the following luminous reasons : *■*' Coals are certainly a raw material. But should we ad- " mit them duty free, vre should soon see closed those rich " coal pits on which such immense sums have been expend- " ed, to penetrate the veins, and raise the coal by steam " engines. The low price at which the English can deliver *' their coals in our ports, in consequence of the facility of " extraction, and the proximity of the mines to the sea, af- ** ford them advantages which are wholly out of our power *' to countervail."* Such was the policy of the military despotism of Bonaparte — such is the policy of the reigning dynas- ty — and such is the provident care of the national re- sources, and of individual prosperity. What Ameri- ' que ; la, des etablissemens plus considerables, alimentes ' par de grands capitaux, ferment des avantages centre Icsquels *' nous ne pouvons pas luiter encore. Ajoutez a cela que les *' filatures anglaises par mecanique existent depuis soixante " ans ; que les frais de premier etablissement sont rentres ; que '' les benefices ont cree denouveaux capitaux ; tandisque les fiia- *' tures fran^oises ont ete formes de nos jours, et que les inte- " rets de la premiere mise de fends doivent etre compris, pour " long-temps, dans les benefices de la fabrication. Lefabricant " anglois, convert de ses avarices, riche de ses capitaux, petit jaire *' des sacrifices pour etouffer tine Industrie rivale : le fabricant ^^francois n^a rien a lui opposer, si la legislation ne le protege. " Pour que I'industrie d'une nation puisse concourir avec celle *' d'une autre, il ne suffit pas que les produits soient de menie " quality, il faut encore que les moyens d'executien presentent, *' des deux cotes, les memes avantages." Idem page 424. * " Le charbon de terre est certainement une matiere premiere ; " eh bien ! qu'on en admette la libre importation sans payer " aucun droit a I'entree, nous verrons bientot se fermer ces " riches houilleres du nord et du midi de la France, ou Ton a " depensedes sommesimmenses pour penetrer jusqu'auxfilens, " pour extraire I'eau et le charbon par des pompes a feu. Le " bas prix auquel les Anglois peuvent verser le charbon de *• terre dans nos ports, a cause de la facilite d'extraction, et de *' proximite ou sont leurs mines de la mer, leur donne un avan- " tage que nous ne pouvons compenser d'aucune maiiiere." — Idem, page 426. 41 can can make a contrast between this policy and that of the United States, or reflect on the urter disregard of the ruin of their suffering fellow citizens, which, I repeat — and it can never be too often repeated — has distinguished the proceedings of congress on this vital topic, ever since the close of the war, without blushing for his native country ? The total loas of millions of property — die ruin of magnificent esta- blishmenth — the bankruptcy and distress of their owners — and the calamities of the unfortunate work- men, have had no more effect, and produced no more sympathy, at Washington, than the sufferings of so many Greeks at Constantinople. I have now, from the experience of a mighty nation, detailed the clear principle whereby the wealth of na- tions is promoted, as well as its actual operation and its prosperous result. The inference is irresistible. It is a correct maxim, that " the tree is known by its fruits." A system producing such salutary and bene- ficent consequences, must be sound and just, and any system diametrically opposite to it, must be pernicious. For slight temporary sacrifices, France now reaps a rich harvest of wealth and happiness. Her situation, I repeat, never was more prosperous. And she presents a practical lesson, not to be disregarded with impunity, not to our statesmen alone, but to the whole world, of the immense and inexpressible folly of being led astray by the ignis fatuus of wild abstract theories, and shutting their eyes against the strong and overwhelm- ing evidence of facts and history. In all other sciences a man is justly regarded to a certain degree insane, who pertinaciously supports a theory contradicted by facts and experience. For in- stance, were a physician to write a book, to prove that phlebotomy was a specific in the last stage of con- sumption ; Cayenne pepper, wine, and brandy for gout ; exposure to cold for rheumatism ; tea or coffee im- moderately strong for weak nerves ; when experiments were fairly tried, and found to hurry the ill-fated pa- 6 42 tients to an untimely grave, the theories would be discredited, and he would be shunned as a pestilence if he dared to operate on them. But, unhappily for the world, in the science of political economy, on correct views of which the prosperity and happiness of nations depend, fallacious theories are advocated with zeal and ardour, although not only not supported by a single fact in history, but contradicted by the experience of all nations whatever. The strong deductions from the policy of the Edwards and Elizabeth in England — of Henry IV. and Louis XIV, in France— of Frederic in Prussia — from the immense resources of Great Britain — from ihe complete and wonderful recovery of France after the conquest — as well as from the decay of Spain, Portugal, Italy, and Ireland, are wholly disregarded : and our statesmen, moreover, reject the invaluable admonitions of Franklin and Hamilton, and perpetuate a system which has entailed distress and calamity on every nation by which it has been adopted I CHAPTER IV. Erroneous statement contained in a report to congress respecting the kingdom of Holland, Real situation of that country. Its false policy. Miserable conse- quences. Increase of pauperism^ and decrease of revenue, DURING the last session of Congress, an elaborate report was presented to the House of Representatives by the committee on agriculture, written by Mr. Gar- net, a respectable citizen of Virginia. This document cites the case of Holland most triumphantly against any increase of the impost, and asserts that that king- dom is in a high state of prosperity, notwithstanding, and indeed in consequence of, its very moderate scale of duties. 43 " Notwithstanding the inimense losses which the Dutch " nation sustained for upwards of twenty years by British *' captures, French exactions, and the almost entire prostra- *' tion of commerce, yet their trade, and with it their nation- " al importance, appear to have become equal, or nearly " equal, to what they were before the war of 1793. Their *' capital city, Amsterdam, has again become the chief mart " of Europe. If the policy of any of the European nations " is proper to be imitated by the United States, why is not *' the example of the United Provinces, as regards their " fiscal concerns, as worthy of imitation as that of England ? " At least seeing that, in Holland, her citizens have, for the " most part, been left to themselves in the direction of their " industry, ought we not to pause before we decide that an *' opposite system will promote and extend the prosperity of *' our citizens ? How little the Dutch commercial policy has *' been directed by the protecting system, may appear by " the low duties on the following articles, most of which *' come in competition with their own produce and manu- ** factures, viz. " Arms, fire - - 10 per ct. "Baskets - ISperct. " Butter , - - I ct. per lb. " Books, bound - - 5 per ct. unbound - - 3 per ct. *' Bristles and brushes 10 per ct. *' Blankets - - 10 per ct. *' Cheese, foreign - - 80 cts. per 100 lb. « Cordage - - 2 dol. per 100 lb. " Carriages, new - - 10 per ct. ** Clocks - - 10 per ct. " Copper manufactures - 10 per ct. " Candles, tallow - 2^ cts. per lb. " Clothes, ready made - 10 per ct. "Cotton - - 16 cts. per 100 lb. manufactures - SOflor. per lOOlb. about - 2 to 3 cts. per yd. ** Cloths, woollen, and other manufac- ** tures, wool and worsted - 8 per ct. " Linens, unbleached 2 per ct. bleached - - 4 per ct. " Sail cloth - - 2 per ct. " Sugar, raw or clayed - - 12 cts. per lOOlb. refined - - 4 cts. per lb. 44 " Se^aling wax - - 10 per ct. " Spirits pay no duty, but an excise, " which, for common proof, (probably " our 6d proof,) is - - 28 cts. per gal. " Ditto, highest proof - 42 cts. per gal. *' Wint; ol all kinds - - 16 cts. per gal. *' Tobacco, manufactured, snuff, &c. 8 per ct. *' Toys, turnery, manufactures of wood *' and leather, necklaces, looking- " glasses, trunks, snuff, and tobacco " boxes, fans, with a great variety of " similar articles - - 6 per ct. Foreign vessels. " Teas, Bohea, and Congo - 3 dols. 20 cts. per 100 lb. other - - 6 dols, 40 cts. per 100 lb. Dutch vessels* " Teas, Bohea, and Congo - 100 cts. per 100 lb. other - - 200 cts. per 100 lb. " This extract is from the tariff of Dutch duties for the " year 1816, every article of which, with very few excep- *' tions, is rated about in proportion to those quoted above. *' Most of them, as is well known, are manufactured or pro- " duced in Holland, especially butter and cheese, of which *' the amount of exports, some years since, was, to the best " of my recollection, about three millions sterling. Their " sugar refineries are only protected by a duty of 4 cents " a pound ; yetRicard affirms, that in his time, (about forty *• years since,) there were 100 refineries, which manufac- " tured 100,000 hogsheads of sugar. Tobacco is very *' extensively manufactured in Holland. Gin, as every one " knows, is one of their great staples."* The reporter pays a tribute of applause to the poli- cy of Holland, at the expense of the nations which pursue the restrictive system. " This wise nation," says he, " seems to have thought " that goodness of quality and cheapness of price, were " firmer foundations for national industry to rest on, than " protecting duties." * Report of the Committee on Agriculture, on the memorial of the delegates of the United x\gricultural Societies of sundry counties in the State of Virginia. Read, Feb. 2, 1821. 45 What inference is to be drawn from the fac " about forty years since, there were one hundred su- gar refineries, which manufactured 100,000 hogsheads of sugar," it is difficult to decide. The existing ta- riff is of- quite modern date, and no inference for or against it can be drawn from the state of affairs ^^ forty years since.'*'* If Holland were really as prosperous as the writer asserts — if her prosperity were not " a mere day- dream," a ** beau ideal," it must be granted that the case of this industrious nation was most felicitously quoted ; that it would afford a very respectable sup- port to the elaborate theory of the report ; that the policy of the friends of an increase of the tariff, howe- ever upright their views might be, is unsound ; and that the existing duties, instead of being increased, ought to be considerably reduced. But unfortunately for this worthy gentleman, and fatally for his argument, his assumptions are utterly destitute of foundation. The situation of Holland is diametrically opposite to the very flattering picture he has drawn. Her case recoils on him with irresistible force, and cuts up his theory by the roots. Her de- leterious tariff, enacted in the same year as ours and that of France, has produced in Holland even worse consequences than ours has done in the United States. From its date Holland has been gradually decaying. Her wealth, like ours, has been drained away to sup- port foreign industry — one ninth part of her population is deprived of employment, and obliged to depend on charity for support. The remainder are straitened in their circumstances, and obliged to curtail their con- sumption of luxuries, and even of necessaries — her rcvenue,like ours, is, in consequence, fast diminishing. To cap the climax of her calamities, her states- men, instead of cutting off the source of the evil, are about to supply their financial deficiencies by a most oppressive and pernicious excise on flour and but- chers' meat, the former to be collected at the mills^ 46 and the latter at the slaughter-houses ! To secure the collection of the first, it is proposed to oblige the people to destroy their private mills, and to have the grain ground at public establishments. So much for the case of Holland, adduced with such exultation and triumph in support of doctrines, which it is calculated to sweep away forever with the besom of destruction. On the 27th of June, 1821, there was a very valua- ble work published at Brussels, of which the title is, *' Considerations sur le projet du nouveau systeme *' financier du royaume de Pays-Bas." Ii presents a most gloomy picture of the state of Holland, which, had he seen it in season, might have saved Mr. G. from committing himself and the committee of agri- culture, in the above report, by statements the reverse of the fact, which, I trust and believe, he and they will, as they ought, most sincerely regret. From this work, I annex a few extracts : — *' Our people are in the most unfortunate situation for *' want of work; as it appears, from authentic documents, " submitted to the States general, that one ninth part of the " most industrious nation in the xvorld^ passionately devoted " to labour^ is reduced to the abject state of mendicity^ or to " solicit aid to support their existence ; that a still more " numerous part, the middle and working class, is circum- " scribed to the consumption of mere necessaries ; and that ^^ manufactures and commerce being in a languishing con- *' dition, the profits of persons who follow those two " branches of industry, are insignificant."* * •' Loin d'etre dans Paisance, le peuple est dans la position a " phis malheureuse, par le defaut de travail ; puisqu'il con- *' ste, par des documens authentiques, remis aux etats gene- * raux, que la neuvieme partie de la nation la plus industrieuse " de I'univers, ef qui aime le travail avec passion, est rSduite a " Petal abject de mendlant, ou a besoin de reclamer des secours " pour subsister ; qu'une partie plus nombreuse encore (la " classe ouvriere et moyenne) est reduite au plus strict neces- " saire ; que les manufactures et le commerce etant languis- " sans, le gain des personnes qui exploitent ces deux branches " d'industrie, est presque nul." Considerations sur le projet 47 Here is a most wonderful contrast to the flowery descriptions of the happiness and pro.sjierity of Hol- land, so captivatingly pourtrayed by Mr. Garnet, to in- duce us to copy her beneficent example. Instead of presenting allurements to follow in her train, she stands a beacon to warn other nations to shun the rocks and quicksands on which herquacking statesmen have so lamentably shipwrecked the happiness and prosperity of '* the most industrious nation in the world, passionately devoted to labour.''^ The United States are under great obligations to Mr. Garnet for citing her case, as it has brought her fatal policy and its de- leterious consequences fairly into view, and will en- able our statesmen to decide, by the talisman of in- controvertible facts, on the merits or demerits of the wire-drawn theories that are pressed on the public with so much zeal. The writer ascribes all the calamities of the coun- try, and among others, *' the fall of real estate one third," to the enaction of the " murderous tariff of 1816."* " It is the tariff of 1816, which has opened the door to ** the productions of foreign industry. Fro7n that period, ** there has been a constant deficiency in our finances ; be- *' cause the working classes, deprived of wages, have been ** obliged to diminish their consumption of the articles sub- " ject to the excise- and impost — and because the manufac- " turers, the merchants, and the traders, deprived of the " profit which they derived from the disbursement of the " most part of these wages, have likewise been obliged to " diminish their consumption. " It is since 1816, that the ninth part of the nation is re- ** duced either to mendicity, or to require assistance [for support]. " It is since 1816, that manufactures and commerce have " declined with giant strides : de loi, concernant le nouveau systeme financier du royaume des Pays-has. — A Bruxelles, 27 Juin, 1821, page 29. *" Les tarifs meurtviers de 1816." Idem, page 32. 48 " It is since 1816, that the metallic medium of the nation '' has been lavished to pay tribute to foreign industry. "This disappearance of the specie is most perniciously " felt by the reduction of the price of houses, which, except in "Brussels and the Hague, have fallen^ since that period, " 7no7-e than one third ; an irrefragable proof of the impo- " verishment of the nation ; for if our resources were the " same as formerly, houses would still command the *' same price."* The tariff, so much applauded by Mr. Garnet, has produced the most ruinous consequences to the brew- eries and the distilleries of Holland ; and almost anni- hilated the important manufacture of lace, formerly a source of immense wealth to the nation. Other ma- nufactures have shared the same fate. ** It is ascertained that the immense number of brexveries *' and distilleries^ which formerly existed in both parts of the *■'' kingdom^ have undergone prodigious di?ninution.^^-f The writer states that the wages of the labouring women, when employed in agriculture, were formerly * <' Ce sent les tarifs de 1816, qui ont ouvert I'entree aux " produits de I'induslric etrangere. Depuis cette epoque, *' le deficit n'a pas cesse de regner dans nos finances ; parce " que la classe ouvriere, privee de son salaire, a ete obligee de '' diminuer sa consommation en denrecs soumises aux droits " des accises et des douanes ; parce que les manufacturiers, '• les negocians, et les niarchands en detail, prives du benefice " qu'ils faisaient sur la plus grande partie de ce salaire, ont du " aussi restreindre leur consommation. " C'est depuis 1816, que les manufactures et le commerce ont " decline a pas de geant ; " C'est depuis 1816, que le numSraire national a ete prodigue " pour payer des tributs a Pindustrie etrangere. " La disparition du numerau'e sc fait sentir, et meme d'une " nianiere grave, par la baisse de la valeur de la propriete " batie, qui est tombee depuis cette epoque, de ijliis d^un tier, a " rexception de celle des villas de Bruxelles et de la Haye ; " preuvc evidenle de I'appauvrissement de la nation ; car si " elle avail encore les meme moyens, les maisons se vendraient " au meme prix qu'autrefois." Idem, pp. 37, 38. t " D'abord il est reconnu, que le nombre immense de bras- " series et de distilleries qu'il y avait jadis dans les deux " parties du royaume. est immensement diminue." Idem, p. 31. 49 eight to ten sous per day — that they were able to de- vote about one hundred days in the year to spinning, making lace, &c. ; and thai the effect of the low tariff had been to crush this manufacture, and to lower the wages one half. " Since the tariff of 1816 has permitted the entry of Scotch ** stockings and thules under light duties— and since the *' E'lghsh thules have almost annihilated our Jlourishing ^^ fabrics of lace, there is good reason to believe^ that those ^'•poor women earn at present but four sous per day^^ The deficiency of the revenue of Holland for 1818, was no less than Florins, 6,500,000t Equal to about S 2,600,000 To be provided for by loans or a sale of the na- tional territory, proportioned to the deficiency. f The deficiency in 1819, was Florins, 4,756,152f Equal to about S 1,960,000 The advocates of Adam Smith's doctrines, affect to despise tables — balances of trade— and facts — to which they rarely refer ; but when they do adduce them, as in this case of Holland, they generally ope- rate to overturn their system : and never was there a more unfortunate attempt at propping up a tottering scheme of policy, than appears in this instance. The contrast between the policy and actual situa- tion of France on one side, and Holland and the United States, on the other, is strong and striking. France with an unwinking eye, watches over the pros- perity of her manufactures. She excludes whatever * " Depuis que les tarifs de 1816, ont permis I'entree des " has et tulles d'Ecosse, moyennant de faibles droits, et que " les tulles Jingiais ont presque ctrK^cmti nos belies fahriques de " dentelles, nous avons de fortes raisons de croire que ces " pauvres ouvrieres gagnent tout au plus a present quatre sols " par jour." — Idem, p. 5. " t A couvrir par voie d'emprunt, on par une vente propor- " tionnee de domains deTetat.'' Annuaire historique, ou his- tiore politique et literaire de I'annee 1818, page 254. I Idem, pour I'annee 1819, page 349. 7 50 can injure them. She is not afraid of extortion, which is fully guarded against by competition. She is in consequence highly prosperous and happy. In Hol- land and the United States, the object of the tariflP is principally revenue. Manufacturers, on the brink of ruin, have here cried aloud for protection. They cried in vain. Congress was blind, and deaf, and dumb to their sufferings, and spent its time for weeks together in miserable debates, in which the same argu- ments were reiterated over and over, on compensation acts, Seminole wars, and Missouri questions, without deigning to read or report on the petitions. Impover- ishment and desolation in consequence of the never- enough- to-be- deplored neglect of the dangers and suf- ferings of the citizens, spread through the land. Real es- tate fell, exactly as in Holland, almost every where one third. The farmers, too numerous for the demands of the domestic and foreign markets, underwent in- tense suffering through the superabundance of the fruits of the earth. The finances finally failed. Loans were repealed — and all the splendid promises of the sinking fund ended in smoke. These admonitory facts ought to settle this impor- tant question forever. England and France have tried the restrictive system in its fullest extent. They have derived from it boundless wealth and resources. It has enabled the former to hold in check the most for- midable power Europe has beheld for 500 years, and finally to lay that power prostrate. It has enabkd the latter to overcome in a few years the most severe dis- tress as well as the most oppressive exactions. That England has prodigally lavished her resources, and en- tailed enormous evils on her population, no more proves that her system was not the true road to " the wealth of nations," than the case of an individual, who car- ried on a gainful commerce, but ruined himself by pro* digality, would prove that his commerce was not pro- fitable. No writer has inveighed more bitterly against pay- 51 ing attention to the balance of trade, than Mr. Cam- breleng. Of his denunciations, often repeated, I give a specimen : — " Of all the bodies which revolve in the systems of po- *' litical economy, not one has presented itself in so many " different shapes as this same capricious " balance of " trade :" — and no where, so much as in this devoted land, " has it appeared with the fiery and bloody features of a *' cornet^ folloxvea by its trail of war, earthquakes, and fa- *' wziwi?." — Examination, page 125. What Mr. Cambreleng means by attaching " the Jiery and bloody features of a comef and a *' trail of xvar, earthquakes and famine^'* to the inquiries into, and stress laid on, *' the balance of trade," it is not easy, nor very important, to discover. These ele- gant figures are peculiarly appropriate in a sober dis- cussion on political economy, and reflect honour on the judgment as well as on the lively imagination of the author ! It cannot, however, be denied, that to ascertain the balance of trade for or against a nation ■with critical accuracy, is impossible, nor is critical exactness necessary. A near approximation to the truth is sufiicient. Even a merchant engaged in a very- extensive and complicated trade, may sometimes find it very difficult to state the precise balance of that trade. But a very moderate supervision of his books will en- able him to ascertain which way the balance inclines, whether favourably or otherwise. Thus it is with nations. It can be readily ascertained whether they buy or sell most. This is the grand point to be decided. When a nation buys more than it sells, it is invariably distressed and embarrassed. To pay the difference between its sales and purchases, it is obUged, as we have been in 1816, 17, 18, and 19, to export its specie. This creates a general stagnation of business. The price of every article falls. — The working classes are thrown out of employment. Their employers are bankrupted. Distress and poverty per- vade the land. The finances fail, as already fully 52 stated, in consequence of the general impoverishment, whereby people aie unable to purchase as formerly those articles on the consumption of which the reve- nue depends. Ccin any man doubt that Holland formerly had, and that England at present has, a balance in her favour in the trade with the world at large ? — that the ba- lance has been for a century against Spain, Portugal and Ireland — or that it was against the United States in 1784, 5, 6, 7 & 8— and in iS15, 16, 17, 18 & 19? And Mr. Cambreleng to the contrary notwithstanding, it is one of the most important duties of a government, to guard against an unfavourable balance of trade, the fruitful source of national impoverishment, with all its ''^ fiery and bloody features^'' of misery and distress. CHAPTER V. Prosperous state of the nation after the war. Mr. Madison'' s recommendation of protection to manu- factures. Mr. Dallas'' s tariff. Outcry against the pretended extortion of manufacturers. Reduction of the tariff. Calamitous consequences. The sketches given in the preceding chapters, of the policy of England, France, and Holland — of the operation of that policy— -and of the actual state of those nations, with the causes which have produced the calamitous scenes exhibited in the first and last, and thi- high degree of prosperity of the second, are so striking, and militate so strongly against the plau- sible theories of free and unrestrained trade, that I hope such of the readers of these pages as have been zea- lous advocates of that trade, will at least seriously reconsider the subject. It is well worth while to re- 53 fleet how far the support of a system, contradicted by the experience of some of the first nations on the globe, and unsupported by that of any nation what- ever, of extensive population, is compatible with the use of reason and common sense. I proceed, according to my purpose, to take a view of the policy pursued by this country since the peace, which has blighted the energies and prosperity of a nation, blest with advantages, natural, moral, and po- litical, never exceeded, and subject to fewer disadvan- tages, probably, than any other nation in the world. We closed the war, as I have already stated, with distinguished honour, and, with the exception of a few parts of the country, ravaged by the enemy, in a high state of prosperity. Every person in the nation, disposed to useful industry, was fully employed. An immense sum, probably from 90 to 100,000,000 of dollars, was invested in manufactures and manufac- turing establishments, which had made the most ex- traordinary progress during the war. And such were the energy and enterprise of our citizens, and such the immense impetus afforded by the unrestrained ex- ercise of industry, that without having ever received a single dollar of bounty, or premium from the go- vernment, or any privilege or immunity whatever, they had arrived in two or three years at a degree of prosperity, which had cost England, France, Prussia, and other countries, at least half a century, and immo- derate sums, bestowed in bounties and premiums, be- sides various immunities and privileges. The world has perhaps never before witnessed such a rapid pro- gress in the same space of time, and at so little expense to the government of the country where it occurred. Those who may be disposed to regard the estimate of 90 to 100,000,000 of dollars as two high, are refer- red to the reports of the committee of commerce and manufactures in 1816, wherein it is stated, on infor- mation received by that committee, that there were 60,000,000 of dollars invested in the cotton and wool* 54 len manufactures alone. But even if the amount be overrated, it does not affect the question. It is suffi- cient for the purpose that the capital thus invested was immense, and embraced a large portion of what had previously been employed in commerce, which would otherwise have lain dormant during the war. There is one point of view in which the progress made, is truly astonishing, and highly creditable to the undertakers. Their operations were commenced un- der great difficulties, and various discouraging disad- vantages, of the most serious character. The esti- mates of the expenses of their establishments, were frequently so far below the actual cost, that in many cases, they were unfortunately obliged, after having exhausted their capitals, to borrow largely from banks. Notwithstanding the immense number of sites for the erection of mills, the owners sold them at most extravagant prices. Skilful mechanists were scarce, and hired their services and talents at equally extravagant rates. Experienced workmen were almost as scarce, and of course could not be had but at very high wages. Raw materials rose most exorbitantly. To avoid much detail, I shall confine myself to the single article of Merino wool, which is a tolerable specimen of the whole. In May, 1812, be- fore the declaration of war, it was sold at 75 cents per pound — but in the course of 1813 and 1814, it rose to three and four dollars — as may be seen in Grotjan's Philadelphia Price Current, to which the reader is re- ferred : in one word, almost every person in the na- tion, with whom the manufacturers had to deal, took advantage of their necessities, and made them pay most extravagant prices. All these oppressive and overwhelming disadvan- tages they successfully struggled against, and by a most laudible perseverance and energy overcame. At the close of the war, they were " in the full tide of suc- cessful experiment." Had it continued another year or two, or had government afforded manufactures S5 adequate protection at its close, they would have taken such deep root as to be able to withstand the attacks of foreign rivals. Having proved so useful in time of war, they were fairly entitled to be fostered and protected after its close. This idea had been held out during the war by the constituted authorities ; and some years previ- ously, Mr. Gallatin had issued a circular, calling for information as to the best means of promoting manu- factures, and giving strong reasons to induce a belief, that government seriously intended to foster and pro- mote this important branch of national industry. The President of the United States, Mr. Madison, in his message at the opening of the first session of the fifteenth congress, Dec. 5, 1816, presented the sub- ject to that body in cogent terms, as demanding their serious attention. " In adjusting the duties on imports to the objects of re- ** venue, the injiuence of the tariff on manufactures will ne- *' cessarily present itself for consideration. However wise *' the theory may be, which leaves to the sagacity and inte- *' rest of individuals the application of their industry and re- *' sources, there are in this, as in other cases, exceptions " to the general rule. Besides the condition which the the- *' ory itself implies, of a reciprocal adoption by other na- " tions^ experience teaches that so many circumstances must " concur in introducing and maturing manufacturing esta- *' blishments, especially of the more complicated kinds, that *' a country may remain long xvithoiit them^ although sujffi- " ciently advanced, and in some respects even peculiarly '■^ fitted for carrying them on xvith success. " Under circumstances giving a powerful impulse to ma- " nufacturing industry, it has made among us a progress "and exhibited an efficiency, which justify the belief, that " ruith a protection not more than is due to the enterprising " citizens xvhose interests are now at stakc^ it will become, *' at an early day, not only safe against occasional competi- " tors from abroad, but a source of domestic wealth and " even of external commerce. In selecting the branches *' more especially entitled to the public patronage, a pre- " ference is obviously claimed by such as xvill relieve the '''' United States from dependence on foreign supplies., ever 56 "' subject to casual failures, for articles necessary for public " defence, or connected wiih the prinrvary wants of indivi- • *' duals. It will be an additional recommendation of parti- " cular maniifacturcs, when the mater'iah for them are exten- *' sively drarvn from our agTiciiltnrr^ and consequently im- "part and ensure to that great fund of national prosperity *' and independence, an encouragement which cannot fail *' to be rewarded." To these admirable views of a grand national sub- ject, entitled, from their justice, as well as from the respectable quarter whence they emanated, to great weight, no attention was paid by congress, as will subsequently appear. In this session, Mr. Dallas, secretary of the trea- sury, reported a tariff, the adoption of which would have afforded tolerable protection to the chief of our manufactures. He had bestowed great attention on the subject — and had invited communications from almost every quarter of the union, in order to enable him to do justice to it, and to the duties of his office. The tariff he proposed, therefore, claimed a high degree of attention — but received very little from cony:ress— who cut and carved it most unmer- cifully. The rates were reduced, iO, 20, 25, 35, and 50 per cent, on many important articles. Thus, fine cotton goods, on which Mr. Dallas recom- mended a duty of 33 per cent, were reduced to 25 — pottery, earthen and glass ware from 30 to 20 — print- ing tvpes from 35 to 20 — printed books from 35 to 15, &c. &c. This pernicious and destructive measure, to which may be traced four fifths of the calamities and dis- tresses this nation has suffered since that period, was greatly facilitated by a base and calumnious clamour excited against the manufacturers on the ground of extortion said to have been practised during the war. This groundless charge was aided in its progress by those who were hostile to manufactures and manufac- turers, from self interest or prejudice. It was rever- berated from New Hampshire to Georgia, and from the 57 Atlantic to the Mississippi, and formed no small portion of many a dull and long-winded harangue in congress — and as dull and long winded essays in newspapers. Although fortunately the odium it excited was not as sanguinary or piratical in its effects, as the outcry occasionally raised in *' olden time" against the Jews, to warrant a projected confiscation and massacre ; or against the knights templars, previous to the horrible proscription of which they were the victims ; it as ef- fectually answered the purpose intended, that is, to prevent the objects against vvhom it was directed from obtaining adequate protection. Against such clamours reason has in every age raised her voice in vain. It is too feeble to be heard amidst the bellowings of pre- judice, passion, infatuation, and hatred. If any thing could render this calumny more shock- ing and disgraceful, it was, that the merchants, about this period, and for the preceding twelve months, sold their goods at most exorbitant and unprecedented advances — and that the prices of agricultural produc- tions were then likewise exorbitantly high in the U. States. Tobacco, throughout the year 1816, ave- raged, per hogshead, - - S 185.00* Flour, per barrel, .... lO.OOf Sea Island Cotton, per pound, - - .47$ Upland, _ .27$ What can be conceived more revolting than citi- zens selling tobacco at 185 dollars per hogshead, cot- ton at 27 cents per pound, and flour at 10 dollars per barrel, while they were cruelly legislating their unfor- tunate brethren to irretrievable destruction, on the sorry and contemptible pretext of extortion, because they had raised the price of woollen goods, for instance, fifty or sixty per cent,§ when the raw material was • Pitkin's Statistics, page 131. t Idem, page 112. | Idem, page 133. § I confine myself to woollen goods, merely because this ar- ticle is a more tangible one — and more subject to the talisman of figures. Almost every other article would equally confirm the doctrines here advanced. 8 58 advanced three or four hundred per cent, by the very men who sounded the alarm of extortion — sites for manufactories five hundred per cent — workmanship one hundred — and when most enormous expenses had been incurred for establishments to carry on the ma- nufacture ?* At this session of congress the manufacturers had a number of agents at the seat of government to plead their cause, and to prove the necessity of guarding their establishments, then in their infancy, against the overwhelming advantages possessed by their fo- reign rivals. These explanations were of the most cogent and irresistible nature, and pointed out, '^ with a pencil of light," the national impoverishment and distress that must necessarily follow, and have since followed, from the sacrifice of so large a portion of the industry of the country devoted to manufactures, as would fall a victim to the system, the enaction of which they deprecated. Many of the members of congress, likewise, whose views were luminous and profound, zealously contended for the adoption of Mr. Dallas's tariff. But it was all in vain. The dead- ly hostility against the " extortionate manufacturers'* was as immovable and relentless as the Peak of Tene- riffe. The importations in 1815 and 1816, were carried to a most extravagant extent, and amounted, as nearly as can be estimated, to about one hundred and eighty milHons of dollars. The duties that accrued in these two years were about sixty four millions. On this wonderful increase of revenue some of our states- men sang " Jo paeans," as if we were about to realize a financial and commercial millennium. The payment of the national debt in a fevv years was among the ex- ploits they were to accomplish. Some of them were so very sanguine as to believe that the treasury would * T.'he destructive effects of this calumny entitle it to a further discussion. See Chap. IX. 59 overflow so fast that it would be difficult to find em- ployment for the national wealth. This delirium, which a year or two in ordinary seasons, would have entirely dispelled, was continued beyond its natural time of existence, by a concurrence of circumstances, which it may be proper to develop. Notwithstanding the great accession to the agricul- tural class in Europe, by disbanding ihe gigantic ar- mies — those fruges consumere nati — who had for years ravaged that fairest portion of the globe — the crops fell short in that quarter, for two or three years after the peace. The British ports were open to our bread stuffs till November, 1817. Hence this im.por- tant staple continued at very high rates till the year 1818. The supply of tobacco in Europe at the close of tl^ war was very small — and the exportations of 1815, 16, and 17, being moderate, this Staple maintained a high price for those years. The importation of cotton into Great Britain, during our war, had greatly decreased — as will appear from the following comparison of two successive periods, of three years each. bales. 1809, . . 440,382 1810, . . 561,175 1811, . . 326,231 1,327,788 1812, ' . . 261,205 ISiS, . . 249,536 1814, . . 287,631 798,372 The stock on hand, therefore, at the close of 1814, was only 80,600 bales — and although the importations in the succeeding years greatly increased, as will ap- pear from this statement: — bales. 1815, . . . 370,000 1816, . . . 371,400 1817, . . . 477,160 ■1,218,560. 6d yet the consumption so completely kept pace with the supply, that there were on hand, at the close of the year 1816, only 76,600 bales, and at that of 1817, only i 14,600. High prices were therefore maintained. These circumstances greatly enhanced the value of our exportations, and, I repeat, prevented the ru- inous consequences of our tariff from developing themselves as early as they would otherwise have done. —1817.— In this year, bankruptcy and ruin spread more ge- nerally among the manufacturers. Some of them, enjoying very particular advantages in respect of ca- pital, situation, &c. were able to withstand the shock, but with impaired fortunes. The most pathetic ap- peals were made to congress, from all the manufac- turing districts of the nation, but, as I have already stated, wholly in vain. The bank of the United States in this year com- menced the importation of specie, of which it in- troduced into the country S7,3 11,750, at an expense of j^525,927, in order to facilitate the operations of the institution. But it was just equally successful with the attempt of the Danaides, to draw off the water of a deep well, with a sieve. As fast as the specie ar- rived, it was re-shipped, to pay the enormous balance against the United States, and to purchase merchan- dise in India and China, the great gulfs of the specie of the western world.* With this specie went a large portion of that which was in the country at the close of the warf : and such was the pressure on the bank * The importation of specie from the United States into China alone in three years, amounted to above 17,000,000, viz. 1816-17, g 4,572,000 17-18, 5,300,000 18-19, 7,414,000 S 17,286,0001 t On the 1st of July, 1814, five banks in the town of Boston^ had no less than ^5,468, 604 dollars in specie in their vaults. ^ Report of a select committee of the House of Lords, 1821, page 93. 61 of the United States for specie, that it was obliged, in the following August, to cease receiving the notes of its branches. Flour averaged per barrel, in 1817, S 12.00* Tobacco, per hogshead, - - 148,00* Sea Island Cotton, per pound, ' - .40* Upland Cotton, 26 1-2* This flourishing state of agriculture deprived the farmers and planters in congress of an apology which has been since employed to extenuate their disregard of the distresses of their fellow-citizens — I mean the depression which has lately taken place in the price of all these articles, whereby they suffer nearly as much as the manufacturers. It is perfectly obvious, that a farmer who sold his flour at twelve dollars per barrel — or a planter who sold tobacco at one hundred and forty-eight dollars pe r hogshead, or cotton at twenty-six and a half cents per pound, could well afford, without any great pre- tensions to extraordinary liberality, to pay a trifle ex- tra for the manufactures of his fellow-citizens, who gave him such extravagant prices for his produce, more especially as tlie farmers and planters had the exclusive supply of the domestic market. And their obduracy on this point, will remain an indelible stig- ma on the successive congresses to whom the fruit- less applications were made. Surely, as the farmers and planters had the exclu- sive supply of their fellow-citizens, it would not have been unreasonable, had the latter demanded even the exclusive market for their own productions. This stipulation, extraordinary as it may seem, would be nothing more than a mere reciprocation of benefits. But no such arrangement was proposed or expected. All that was required was, that they should be pro- tected in the enjoyment of a due share of the domes- tic market. * Report of the Secretary of the Treasury. _ 62 —1818.— Flour and cotton this year maintained high prices. Flour averaged per barrel, 810.001 Sea Island cotton per lb. .SQf Upland cotton, .32t But a very considerable increase in the quantity of tobacco exported, produced a great reduction of the price of that article. It fell from 148 dollars to 116 dollars per hogshead. The quantity exported in 1817, viz. 62,365 hogsheads, produced 89,250,020 — whereas 84,337 hogsheads, exported in 1818, pro- duced only 9,867,429 dollars. However, the price of tobacco, as well as those of the other great staples, were still sufficiently high to warrant the farmers and planters to make some sacri- fices to rescue their brethren from ruin. But their hearts were closed against their claims. Calculations were made in and out of congress, to prove that the protection of manufactures was amply adequate. All the rules of arithmetic were pressed into the service for this purpose. And to hear the debates on the subject, one might be tempted to be- lieve, that the manufacturers became bankrupts, and had their property sacrificed for a fourth or fifth of its cost, merely out of waywardness and spite, in order to belie the profound calculations of these wise arithmeticians. But unfortunately, those great political economists only took into view the prices at which merchandise could be introduced into the country by regular im- porters, able and willing to pay for ii. They ne- ver condescended to consider the immense quantities of foreign goods forced into our ports through the ne- cessities or the cupidity of foreign merchants, and sold at vendue, below first cost, whereby our markets were inordinately glutted, and our own citizens ex- cluded from a fair chance of sale in their native country. t Treasury Report, 1818. 63 —1819.— This year capped the climax of the distress of the manufacturers, and spread ruin and desolation in eve- ry direction. There is reason to believe that from 90 to l(;0,000 workmen were actually thrown idle, in this and the preceding two years, and either driven to labour at ai^riculture in the country — or on the highways. In many cases they worked on the turnpike roads at the rate of 12 cents per day, and their vic- tuals. The number thrown out of employment in Pittsburg, Philadelphia, and in the state of Rhode Island, was as follows : — Philadelphia, about persons, 11,288 Pittsburg, - - 1,288 Rhode Island, - 11,337 23,725 The devastation elsewhere was on the same scale — but, not possessing details, I cannot form any satisfac- tory estimate. Flour and cotton fell considerably this year — but still supported prices which amply compensated for the labour bestowed on them. Flour averagtd per barrel, - S8.00* Sea Island cotton, - - .46* Upland cotton, - - .22* The reduction of the cotton was above thirty per cent, since last year — and spread ruin among the planters and exporters of the article. The former had predicated their expenses on the old prices, and felt their incomes at once reduced nearly one third, equal to about 7,000,000 of dollars. The latter had made immense purchases at the high rates, and it is computed lost about 4,000,000 of dollars. Tobacco fell to Si 10 per hogshead — and the reduc- tion during this and the preceding year, made dreadful havoc among many of the most estimable ^nd re- spectable families in Virginia. • Report of the Secretary of the Treasury. 64 —1820 This year produced further reductions in the prices of the three great staples of the nation — and brought home to the doors of the farmers and planters a por- tion of the distress which, with an unpitying eye, they had for years beheld raging among their brethren. P'lour per barrel averaged ^ 4.50* Tobacco per hogshead, 95.00* Sea Island cotton per lb. .32* Upland, '.16* The reduction of the last article was full fifty per cent, from the year 1818. Thus has this nation, at the expense of probably from 100 to 150,000,000 of dollars — and of an incal- culable amount of human happiness, realized the ad- monitory fable of the belly and the members. The farmers and planters were excited by artful or mis- guided men to regard their brethren with as dead- ly a jealousy as the people of rival nations feel for each other. In many cases, it was carried to the ex- treme length of indignation and hatred, f They flatter- ed themselves with the idea of deriving immense ad- vantages from " purchasing goods abroad cheaper than they could be manufactured at home." And having the legislation in their own hands, they shut their ears against the cries, and their hearts against the suffer- * Report of the secretary of the treasury. t The rancorous spirit displayed by some members of con- gress, at the time when the tariff of 1816, was enacted, is scarce- ly credible. One gentleman, remarkable for his intrepid disre- gard of the common forms of society, in his interminable and amusingly-diversified orations, after a long and desultory ha- rangue, of which the burden was — " extortion — extortion — ex- tortion*' — made a solemn asseveration, that he not only never Avould wear, but not even allow any of his slaves to wear a yard of American cloth. This amiable gentleman, so indignant at the extortion of the manufacturers, sold his crop of tobacco that very year at thirty cents per lb. " Thou hypocrite,'' says Jesus Christ, " first take the beam out of thine own eye, and then thou shalt see clearly to cast out the mote out of thy bro- ther's eye." Matt. vii. 5. 65 ings of their fellow citizens. Of the chalice of wretch- edness which they presented to the lips of their breth- ren, they, particularly the farmers, have drunk deep- ly. Happy, thrice happy will it be, if even at this late day, they profit by the warning example which they hold out to mankind, that iiliberality and injustice ge- nerally recoil on the heads of those by whom they are perpetrated. The shrewd policy of the Dutch in destroying the superfluous quantity of spices in years when the crops were very abundant, — has been a subject of admira- tion, as displaying a thorough knowledge of human nature and of the principles of trade. The conduct of our agriculturists has been in direct hostility with this policy, and severely have they suffered for it. The depression of manufactures, in consequence of their successful opposition to affording them adequate pro- tection^ has greatly increased the number of farmers, and consequently the productions of the earth, and converted valuable customers into formidable rivals. The preceding views afford two striking illustra- tions of this position. I have already noted the case of the increase, and consequent fall of price of to- bacco in 1818 — and now request attention to that of flour in 1820. In 1817, 1818, and 1819, as I have already stated, there were about 100,000 manufactur- ers thrown out of employment, chiefly in the last year. Many of them went back to cultivate the soil, and thus greatly increased the surplus for exportation in 1820. Mark the result- In 1819, there were only 750,660 barrels of flour exported, which produced, 86,005,280* In 1820, the exportation amounted to 1,1 yyiOSe barrels, which produced only §5,296,664* The quantity was increased above fifty per cent. — and the amount reduced above ten per cent. There are two points in this case that appear de- serving of the most serious consideration. The first * See Reports of the Secretary of the Treasury. 9 66 is, that the extra quantity in 1820, of 420,000 barrels, was very probably raised by the number of manufac- turers driven to agriculture, so perniciously for the farmers. And the second, that had the quantity ex- ported in 1820 not exceeded that of the preceding year, it would probably have commanded as high a price, viz. eight dollars, instead of selling at four and a half. The reduction of price, three and a half dollars per barrel, amounting to above 82,600,000, was not the total loss to the farming interest. The reduction extended to the whole quantity sold at home, proba- bly 8,000,000 of barrels, making a further difference to that interest of 828,000,000. CHAPTER VI. Very erroneous idea entertained of the tariffs of the United States. Decisive protection of agriculture. Disregard of manufactures. Shocking contrast. An idea prevails pretty generally throughout the United States, among the agriculturists, that from the adoption of the federal constitution till the present time, manufactures have experienced the fostering care of government, and been protected by extravagant duties ; that those duties have borne oppressively on the farmers and planters, *' taxing the many for the benefit of the few ;''"' and finally, that there is no reci- procity in the system, as the fruits of the earth have not been protected by duties. Errors on topics of this importance, are liable to produce jealousies and heart-burnings between mem- bers of the same common family. It is therefore a 67 duty to society to investigate the subject, and ascer- tain on what ground those opinions rest. I hope to make it satisfactorily appear, that they are not only not true, but the very reverse of truth — and that agriculture, at the outset of the government, has had, and still continues to enjoy, far better protection than manufactures. I shall present a slight view of the first tariff, and then examine the one at present in force. At the date of the first tariff, cotton was fifteen pence sterling in Jamaica and the other West India islands.* This is exactly 27.66 cents. The duty imposed on it — not, let it be observed, to protect an existing industry, but merely in the hope, then fondly cherished, and since so very happily realized, that our southern citizens would be able to raise it — was three cents, very nearly eleven per cent. Now the duty on cotton goods of every kind, imposed by that tariff, was only jive per cent. Thus at the very threshold of the government, a bulky raw material, subject probably to seven or eight per cent, freight, was tariffed above one hundred per cent, higher, to en- courage the agriculturists to commence a new species of cultivation, than the article manufactured from it, of which the freight was probably not one per cent, and the manufacture of which had been some time in operation. This is a most striking instance of parti- ality and inequality, very discreditable to the first congress. So far, therefore, the general impression on this subject, is utterly destitute of foundation. On hemp was imposed a duty of sixty cents per cwt. equal to about twelve per cent, whereas manufac- tures of hemp, like those of cotton, were only subject to Jive per cent. Indigo paid sixteen cents, which was about sixteen per cent. The duty on cheese was four cents per lb. which was equal to about JiJtt/'Seve7i per cent, • See Edwards's History of the West Indies, Vol. III. p. 95. 68 To secure the tobacco planters the exclusive supply of the domestic market, there was a duty, absolutely prohibitory, imposed on snufF and manufactured to- bacco — on the former, ten cents per lb. equal to ninety per cent. — on the latter six cents, equal to one hundred per cent. The end proposed by these extravagant duties, which were seventeen hundred per cent, more than on nearly every species of manufactures, was completely answered ; as the importation of snuff and tobacco into this country, from the year 1789 to the present time, has been utterly insignificant. And yet it is as lamentable as astonishing, that many of the tobac- co planters, thus secured in the exclusive domestic market, by most exorbitant duties, have been among the most ardent opposersofany species of reciprocation by even very moderate ones, in favour of their manu- facturing breti»ren. Alas ! poor human nature ! how rarely is the divine precept — " Do unto others as you would have them do to you," carried into operation ! And finally, the interests of the farmers were most liberally guarded. To secure them a grand market in distillation for their oats, rye, peaches, apples,^ &c. and also to secure them one equally important for their ptarh brandy, rye whiskey, &.c. &c. enormous duties, amounting to 60, 80, 100, and even 120 per cent, were imposed on imported spirits. At this period the great mass of manufactured ar- ticles, probably nineteen twentieths, were, like the two above specified, protected, as it is absurdly styled, by the paltry duty of five per cent. It requires no great degree of liberality for any man, whether farmer, planter, manufacturer, or merchant, who examines the preceding statement, to acknow- ledge — and no man of character will dare deny — that this was a most sinister legislation, partial in the ex- treme to the legislators themselves, and making a shameful sacrifice of the dearest interests of their fel- low citizens, who had risked their lives, and shed their 69 blood, to establish that independence, of some of the choicest of whose blessings they were thus debarred ; those blessings 1 mean, which are involved in the se- curity of property and in the right of acquiring it. It adds one to the numberless instances on record, to prove that unrepresented bodies scarcely ever ex- perience *' even-handed justice" from those who legis- late for them. All the successive tariffs bear the same unerring stamp of partiality and injustice — of sacred regard for self — and sacrifice of fellow citizens. But it would extend farther than my proposed limits to prosecute the examin ition throughout. 1 shall therefore confine myself to the tariff now in existence, which presents a *' most hideous contrast" in point of protection. DUTIES FOR THE PROTECTION OF AGRICULTURE, BY THE Muscovado sugar Molasses Dutch cheese English cheese Cotton Manufact'd tobacco Snuff EXISTING TARIFF. Per cent. 100* 30 to 40 90 40 to 50 S3 to 40 60 90 Gin Brandy West India rum Jamaica rum Hemp Potatoes Per cent. 140 90 110 75 27 15 DUTIES FOR THE PROTECTION OF MANUF ACTURE-S. M fifteen per cent. Creas a Morlaix Damasks Diaper bagging, flax Russia diapers German dowlas German Hessians Flax osnaburgs Brown Holland, flax Brown rolls Stripes Brown platilhis Rouans German bed-ticking * Muscovado sugar at the about three dollars per 104lb. Bombazets Sarsenets Satins Silks Silk shawls Canton crapes Crape dresses Chambray, silk and cotton Chambray gauzes Camlets Calimancoes Shalloons Rattinets Havanna, January 20, 1822, wa? The duty is three cents. 70 Globes Wildbores Gold leaf Moreens Hair powder Bandanoes Linen or silk gloves Woollen blankets Silk, thread, or flax half hose, Manufactures of whalebone Muft's and tippets Table cloths, flax Ribands Choppa romals Madras handkerchiefs Snuff boxes Thread stockings Starch, 8cc. M twenty per cent. Anvils Earthen ware Fire and side arms China Cannon Westphalia, Bremen, or Eng- Iron cables lish sail cloth Spades Wool and cotton cards Manufactures of iron, steel, Cotton Stockings pewter, tin, and brass Hempen sail cloth Candlesticks, Japanned or Li- English duck verpool ware Woollen, cotton, or worsted Stone ware hose. Pottery M twenty -jive per cent. Manufactures of copper Fearnoughts Cotton twist Worsted gloves Cotton cloths, of twenty-live Kerseymeres cents per square yard, or Carpets and Carpeting above Cashmere shawls Broad cloths Swanskins. At thirty per cent. Manufactures of leather hats Carriages Clothing ready made Cabinet-ware Duties imposed merely for sake of revenue. Bohea tea 120 per cent. Coff'ee 40 per ceiit. Salt 180 From a view of the above extracts, it appears that the operation of the tariff is most shockingly oppres- sive to the poor, and equally partial in favour of the rich. If this be correct, as I hope to make appear, it is entitled to unqualified censure. To remove all doubt on this subject, I annex a statement of imported articles, to the amount of 300 dollars, consumed by the poor and labouring classes — and of an equal amount, consumed by the rich, with the duties on each respectively. 71 Cost. Duty. Muscovado sugar, - - glOO ^ S 100 Bohea tea, - - 100 120 Salt, - - - 100 180 Cost, g 300 Duty, g 400 Per contra. Cost. Duty. Silks, sattins, bonibazets, bomba- zeens, sarsenets, canton crapeSjSic. S 100 % 15 China, woollen hose, elegant cut- lery, giiandoles, Sec. 100 20 Cashmere and merino shawls, Brus- sels carpets, superfine broad cloths, chintzes, calicoes, 8cc. 100 25 Cost, gSOO Duty, g 60 Can there be found a man in the United States — or in the wide world — who can reflect on this most extra- ordinary statement without indignation? The duties on the articles either exclusively or chiefly used by the poor and working classes, whose sole inheritance is the labour of their hands, and who have to support themselves and families on four, five, six, or seven dol- lars per week, considerably exceed the first cost, even on necessaries of life. Whereas the duties on articles used wholly by the middle and wealthy classes of our citizens, some of them pernicious luxuries, average only 20 per cent, of the cost. No age or nation ever wit- nessed a much more shameful abuse of power — a more unfeeling disregard for the rights of the poor — or a more complete violation of every principle of sound policy. The duty on one hundred dollars worth of muscovado sugar, is nearly as high as on seven hundred dollars worth of silks, sattins, bombazets, bomba- zines, &:c. and, shocking to relate, the duty on one hun- dred dollars worth of bohea tea^ is nearly equal to that on five hundred dollars worth of superfine cloth, Brus- sels carpets, chintzes, calicoes, SsV. and the duty on one hundred dollars worth of salt is equal to that on seven hundred dollars worth of those articles. It is a melancholy fact, that the cotton and su- 72 gar planters, who have amassed wealth for years, with a rapidity scarcely ever exceeded, and who are protected by enormous duties, have, nevertheless, with few exceptions, steadily resisted all the appli- cations of their fellow citizens, not for 50, or 60, or 70 per cent, protection, but for 25, 33, or 40. I appeal to the sugar planters — such citizens as the respectable James Brown, Esq. of Louisiana — enjoying annual in- comes, from 5 to 15,000 dollars per annum, under the liberal protection of a duty of one hundred per cent, on an article, the freight of which is probably thirty per cent. ; how can they justify themselves to the world and to their own consciences, in aiding to vote down a proposition to afford a protection of twenty-five per cent, to manufacturers of brass, iron, steel, linens, &c. and of thirty-three per cent, to the manufacturers of chintzes and broad cloths ? Is it not to the last degree preposterous that hemp, a ravv material, should pay a duty of twenty- seven per cent.^ — and Russia and ravensduck, made of hemp, pay but fifteen* — that cotton should pay a duty of 33 to 40 per cent. — and cotton stockings but twenty — and chintzes and calicoes but twenty- five — that Dutch cheese should pay ninety per cent. — and such a variety of manufactures of brass, iron, steel, &CC. pay but twenty ? In one word, that linens, silks, cambrics, and thread stockings, should pay only the same duty as potatoes ? I siiall now attempt a brief analysis of the principal features of this tariff — 1. The articles interfering with the interests of agri- culture, as cotton, spirits, ciieese, hemp, tobacco, su- gar, &,c. for which the great freights would be almost full protection, are burdened with high, and, in many instances, exorbitant duties, from 40 to 140 per cent. 2. The articles which interfere with, paralize, and destroy manufacturing industry, as manufactures of iron, steel, copper, brass, tin, flax, cotton, and wool, * Old and new tariffs compared. 73 are admitted at low duties, from 15 to 33 per cent, as if to inviie importation, for the mere purpose of re- venue, without any regard to the welfare of the manu- facturers. 3. On all those articles which do not interfere with the industry of the nation, either agricultural or ma- nufacturing, as tea, coffee, pepper, spires, salt, wines, &c. the duties are ,8:enerally exorbitant, from 40 to l'-20 per cent, notwithstanding the terrifying alarm of the awful danger of smuggling, b}' raising the duties on manufactures to 23 or 33 per cent. 4. Some raw materials for our most important es- tablishments, are dutied higher than the articles ma- nufactured from them. 5. The tariff is admirably calculated to foster the industry, and support the governments of foreign nations — to impoverish our citizens, and render them hewers of wood and drawers of water to those nations — to discourage immigration — and to arrest the United States in their career to prosperity and great- ness. 6. Necessaries of life, used exclusively, or chiefly by the poor, such as muscovado sugar and bohea tea, are subject to 100 or 120 per cent, duty, — where- as luxuries, used exclusively by the middle and wealthy classes ofsociety, as silks, satins, merino and cashmere shawls, china, fine cutlery, &c. are admitted at low du- ties, 15, 20 and 25 per cent. Yet this is the miserable tariff, suchan outrage on common sense, and common justice, upon which the committee on manufactures lately made a solemn report, that " it was not necessary to legislate on the subject.^^' Surely it hes rarely happened that a com- mittee of a legislative body has put on record a more unfounded declaration. For never did a tariff more fully require revision than this, almost every leading feature of which bears strong marks ofpartiality, in- justice, or impolicy. 10 74 CHAPTER VII. Danger qfsmuggling assigned as a reason for rejecting the protection of manufactures. Fallacy of it. Du- ties of Mr. Baldwin^s tariff. Extravagant duties on spirits, wines, teas, pepper, is'c. Among the reasons assigned in and out of congress, and enforced with great zeal, against Mr. Baldwin's tariff, it was most confidently asserted that high du- ties on imported articles would produce smuggling and that great demoralization would thence ensue. This objection has played a distinguished part from the organization of the government to the present time, whenever there was a question of raising the duties, even in early times, when they were generally but five, or seven and a half, or ten per cent. It has re- peatedly aided most powerfully to defeat the applica- tions of the manufacturers, and at various periods consigned immoderate numbers of them to bank- ruptcy. It therefore demands a severe scrutiny. The points to be attended to in this discussion are, to ascertain what the duties proposed in Mr. Bald- win's tariff really were — to compare them with exist- ing duties — and then to drt»w a fair inference. The ad-valorem duties proposed by the new tarifl", were at 20, 25, 30, 35, and 40 per cent. I an- nex the principal articles. At twenty per cent. Gauzes Pictures and prints. Looking glasses Gold leaf, Sec. At twenty-five per cent. Fire and side arms Copper, manufactures of Brass, iron, or steel locks, hin- Duck and hemp cloth ges, anvils and vices All articles of which iron, brass Brass, other manufactures of or steel is the chief value Buckles Linens, plain, vv'hite or printed Cards, wool and cotton Sail cloth, 8cc. 75- M thirty per cent. Manufactures of India silk, &c. »9t thirty -three per cent. All fine cotton goods, other Woollen manufactures, &c. than India Jit thirty -Jive per cent. Coaches Leather, tanned, and manufac- Earthen and stone ware tures of Cut glass Marble and stone tables Gold plated ware Millinery ready made Bonnets and caps for women Printed books Silver plated ware Saddles, bridles, &c. dt forty per cent. India cottons Hats of every kind Clothing ready made Nankeens. These are the chief of the ad- valorem duties pro posed by this tremendous tariff, which from their ex- orbitance were to demoralize our citizens, by the intro- duction of smuggling, and which in consequence ex- cited such an outcry throughout the nation ! , Now, I presume it will be admitted by every man of candour, if various duties as high as those above stated have existed since the commencement of the government, without any dread of smuggling, or de- moralization, that the objection was wholly destitute of foundation, and unworthy of congress — and that this postulatum acquires vast additional force if duties 50, 60, 70, 80, 90, and 100 per cent, higher, are at this hour collected on other articles. With what propriety these duties were rejected, under the idea of the danger of smuggling, will appear from the following statement of existing duties — Per cent.* Per cent. Salt 180 Coffee is subject to a Pepper 100 duty equal to from 40 to 50 Mace 60 Madeira wine 50 to 60 * The per centage of these duties is taken from ♦' Old and new tariffs compared^^ except those on salt and teas. 76 Pimento 50 Catalonia 40 to 60 Gin 140 Bordeaux 50 Nantz brandy 90 Sherry and St. Lucar 50 to 60 Marseilles 110 Teneriffe 60 W.I. rum 100 Marseilles 75 Jamaica 75 Sicily 50 to 75 Bohea tea 120t Fayal 75 to 80 Hyson skin 12Ut Young hyson 120t It rarely happens that a plausible reason given for incorrect public conduct, can so ill stand the test of ex- amination as this tremendous spectre of smuggling and its concomitant, demoralization. It will seem in fuiure times utterly improbable, if not impossible, that gene- ral credence could have been given in the nineteenth century to the idea that if duties of twenty-five per cent, wert imposed on manufactures of iron, brass, steel, copper, lead and tin — thirty-three per cent, on chintzes and broad cloths — thirty five per cent, on pottery, earthen, and stone ware, they would demo- ralize a country in which duties of 120 per cent, were intrepidly imposed on teas — 110 per cent, on West India rum — 140 per cent, on gin — 180 per cent, on salt, and other exorbitant duties on various articles, without the least apprehension of smuggling or de- moralization. It is pretended that the articles subject to such high duties, are not easily smuggled — ^ whereas cot- ton and woollen goods can be readily introduced clan- destinely — and that teas being usually imported in large vessels, the evasion of the revenue laws with re- spect to them, is very difficult. But this will not stand the test of examination. Cannot teas be introduced into the VV. Indies, and from thence or from Europe, impor- ted clandestinely, as easily as cottons or woollens ? Is t The bohea tea, imported into Philadelphia, in the Phoenix, Nov. 1820, cost 10 and 11 cents. The duty is 12 cents. This is exactly 120 per cent, on the low priced. Hyson skin cost 22 to 23 cents — young hyson 30 to 32 cents. The duty on the former is 28 cents, and on the latter 40 These duties are above 120. 77 not wine as easily smuggled as manufactures of iron, steel, copper and brass ? And is there any article more difficult to smuggle than pottery, on which the duty is only twenty per cent ?f The immense importations of, and revenue receiv- ed from, tea and coffee for the last six years, notwith- standing the exorbitant duty on the former of 100 to 120 per cent., is full proof that those who have assign- ed the danger of smuggling as a reason against rais- ing the duties on cottons and woollens to 33 per cent, and on manufactures of steel, iron, brass, copper, tin and lead, to tweniy-five per cent, were either them- selves deceived, or deceived the world. TEAS. Imported. Consumed. Duty paid. 1815, 5,075,430 lbs. 2,172,940 lbs. S 950,209 1816, 7,076,346 3,864,604 1,274,176 1817, « 4,586,153 1,484,549 1818, 6,349,133 4,842,963 1,531,749 1819, 7,182,084 5,480,884 1,737,450 1820, * lbs. 4,821,447 1,568,414 lbs. 23,682,993 25,768,991 S8,546,547 t There is no manufacture whatever, the destruction of which reflects more discredit on our government, than pottery — be- cause there was none more easily fostered to maturity — and none, of which the raw material is of less value. Every dollar received for it would be clear gain to the country — and the dan- ger of smuggling and demoralization, the widely-extended cloak, under which so many other manufactures were consign- ed to ruin, was here wholly out of the question. Had the duty, instead of twenty per cent, been one hundred or one hundred and forty, as on tea and geneva, there would not have been a crate of it smuggled into the country. Its ruin is, there- fore, one among die most conspicuous blots on the escutcheon of the Congi-ess of 1816 ; which body will descend to posterity with the reputation of having done this nation more lasting injury than was effected by hostile armies. To this Congress, and its tariff, are justly due nineteen-twentieths of the distress expe- rienced in the United States for the last five years. * These blanks I have not been able to fill up. 78 COFFEE Imported. Consumed. Duty paid. 1815, 25,976,118 lbs. 14,253,319 lbs. §1,423,331 1816, 31,318,054 17,809,018 1,100,686 1817, » 21,900,104 1,090,034 1818, 28,993,565 19,199,403 959,970 1819, 23,196,430 20,825,869 1,041,293 3520, * 13,221,857 664,592 lbs. 109,484,167 lbs. 107,189,570 g6,l 89,906 But it is really a waste of time to encounter this objection. The increase of duty, proposed by Mr. Bald- win's tariff, would only average about ten per cent, on all the important manufactures — and in a country, where so many articles are tariffed at from 50 to 140 per cent., the objection is as complete a case of *' straining at gnats and swallowing camels," as the world has ever witnessed. CHAPTER VIII. Another objection to the protection of manufactures. Extortion. Its impertinence and inconsistency. I have already touched incidentally on the calum- nious accusation of extortion, so vociferously and destructively brought forward against the manufac- turers in 1816 — a calumny against which thousands whose fathers' hopes, fortunes, and happiness, were thereby blighted and blasted, will have cause to vent maledictions, when the framers of the tariff have sunk into the grave. With v.'hat has been stated, I might close the sub- ject. But from the important and deleterious conse- • I have not been able to fill up these blanks. 79 - quences which have flowed from this calumny, it de- mands some further notice. In order to show with what peculiar propriety this accusation was brought forward — how very pure and immaculate from all charge of " extortion^^* were the hands of the farmers and planters, by whom this alle- gation was re-echoed till the " welkin rang" with the sound, I submit to the reader the prices at which the great staples of the country were sold at different periods, which will prove that it was just as appro- priate an accusation as if the Gracchi, or Cataline, had cited Scipio or Cicero to the tribunal of the public, for sowing sedition, and plotting revolutions.* FLOUR. In the year 1789, the average price of flour throughout the United States, was, per bar- rel, $ 4 In 1790, in consequence of a demand in Eu- rope, it rose to 6 It rose subsequently, in five or six years, to 7, 8, 9, and - - - - 10 In 1804 it rose to - - - llf During certain portions of the following years, it sold in our sea ports for 14 dollars. But it fell subsequently to seven, and again rose, in 1815, to - - - 8$ In 1816, it rose to - - - 10:|: In 18 17, to - - - 12| COTTON. Cotton in 1814, was per lb. - cents, 13§ in 1815, it rose to - - 2o5 in 1816, to - - - 27§ which price it maintained nearly through the whole of the year 1817. * " Quis tulerit Gracchos de seditione querentes V— -Juvenal. t Grotjan. j: Pitkin's Tables, page 112. § Idem, p. 133. 80 TOBACCO. Tobacco in 1814, averaged — per hhd. S74|| It rose in 1815, to 961} And in 1816, to the very extravagant price of 185|| What warranted these extraordinary advances of price? Was any superior degree of labour or ca- pital required for the cultivation ? The man would deserve to be hooted out of society as an impostor, who would dare to make use of such a sorry pre- tence. What was it then ? Why merely the in- creased demand. Was this an adequate reason ? Was it righteous, just and proper? Surely it was. The practice of the whole world, in all ages, has sanctioned it. Its rectitude or fairness has never been called in question. But suppose for a moment, that it is extortion ; has the farmer or planter a patent right to " extorf* on the manufacturer, and is the latter precluded from indemnifying himself by returning the favour? Is he obliged to submit, without complaint or remon- strance, to pay one or two hundred per cent, advance for flour, or cotton, or tobacco, and, if he make a fifth part of the advance on his articles, to be afterwards arraigned as a criminal, in a court, where the same men are accusers, judges, and jury, and where he is not allowed to utter a word in his defence — but must submit in silence, to vituperation and condemnation, as a lamb led to the slaughter ? Does it not require a most extraordinary degree of inconsistency for a man who doubles or trebles the price of his produce, to vi- lify and abuse his neighbours for an advance of forty or fifty per cent., were this procedure adopted on the mere ground of increased demand, even if the raw materials had remained at the old prices, instead of being enhanced two or three hundred per cent., and had they not been obliged to make such immense in- II Pitkin's Tables, page 130. 81 vestments in those magnificent buildings and compli- catfd machinery, whose desolate and forlorn state in 1817, 1818, and 1819, shed indelible discredit on the government of the country ? There is nothing much more barefaced in the motley annals of human per- versity and inconsistency, than this monstrous charge of extortion.* CHAPTER IX. Other objections to the tariff. Destruction of com- merce and the revenue. That the new tariff would destroy commerce, was asserted in a variety of memorials ; in Mr. Cambre- leng's Examination of the New Tariff; and in the de- bates of congress, in as broad and unqualified a way as if the bill had contained some provisions altogether prohibiting importation. * So much error has prevailed on this point — and so perni- cious have been the consequences of this error — that it cannot be too fully discussed. A further note on it may therefore be par- doned. I will suppose flour at six dollars per barrel — to- bacco at eighty dollars per hogshead — cotton at sixteen cents, and wool at seventy -five cents per pound — and that some of the events in Europe, on which, unfortunately, our policy suspend* the decision of our distress or prosperity, cause all these arti- cles to rise to double price. If, even at the moment when this rise of price takes place, a farmer or planter be required to pay, not double price — but an advance of ten or twenty per cent, on hats, shoes, saddles, cottons or woollens, which advance is predicated on the rise of the productions of the earth, he will immediately exclaim against " extortion" — " extortion," closing his eyes to the " extortion,'' if " extortion" it must be styled, of which he has been guilty himself perhaps the day before. Say what we will of the " dignity of human nature,'-- man is a wretched animal. u 82 " To prevent the importation of manufactures would^ of " course, deprivt the revenue ot the impost now derived " from them : and an equal sum must, therefore, in order to " support the necessary expenses of government, be raised " by some other direct or indirect tax on the people." — jRe- port of the committee of merchants and others^ of Boston^ on the tariff. " It is now proposed to us to adopt the system lonfv since "practiced by the British government, viz. to prohibit im- '•'■ portations^ in order to protect our own manufactures," Sic. — Exaininati07i of the Tariff., page 7. " What could gratify England more than to see us retire '■^from the ocean ! ! ! voluntarily abandon all intercourse " with other nations I ! ! and, centering ourselves at home, " commence a taxing, manufacturing war against her ? To " see us call home our ships, throw our arms into the sea, " and adopt the very system which she feels in every limb ?" Idem., p. 104. " If our laxvs prohibit importations^ the farmer must ne- "cessarily carry his produce where he can exchange it for " the articles he wants, with the domestic manufacturer." — Idem^ p. 112. " If we expect to sell every thing., and buy nothing., we " deal too much in visions for the trade of this world," — Idem., p. 121. " 'W\\tr\foreign commerce shall be extinguished — and man *' shall be taxed here as elsewhere " in all the joints and arti- " culations of his members, from the top of his head to the *' sole of his foot" in all the pains, as well as all the enjoy- " ments of life ; when the mouths of our rivers shall be barri- *' caded hy guarda costas^ and their shores lined by armies of '■^ doiianiers ; when with the infinite division of labour, we " have acquired the hnbecility and misery of the population of *' other countries similarly situated., then, dearly as we love *'the land, we too shall be ready to emigrate to Angostura, " to the mouth of the Columbia, to Kamtschatka, or Terra " del Fuego, or wherever our freedom shall have fled ; for " ' where she dwells, there is our country.' "* Editors National Intelligencer., Jan. 29, 1822. Making all due allowance for the delusion wliich party feeling and strong passions create, it is really * To those, who, with Messrs. Gales and Seaton, are torment- ed with the apprehension of being (Uiveii by the tariff to Terra 83 difficult to conceive that gentlemen of a respectable grade of talent could believe that this measure, so much deprecated, could produce half or even the tenth part of the ills they state. But although such a cre- dence is extraordinary, it is not impossible. It shall therefore be presumed to exist. In order to allay the public fears on this subject, it is proper to give the subject a very extensive consi- deration. Our importations have been, as already stated, gra- dually decreasing for two or three years, not from any increase of duties, which have remained stationary, but from the general impoverishment of the country. In order to ascertain what injury, if any, the pro- posed tariff would inflict on our commerce, it is ne- cessary to ascertain what that commerce is. 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