1 ?o y JU o :_ 3 1 1 6 6 h 5 9 FACII 1 % ^ r-s J OF THE LIBERAL AND RESTRICTIVE SYSTEMS OF POLITICAL ECOJSrOMVi AND Of their effects in Great Britain, France, Russia, Prussia. Holland, and the United States. WITH AN EXAMINATION OF MR. HUSKISSON'S SYSTEM OF DUTIES ON IMPORTS. BY A CITIZEN OF PHILADELPHIA. SECOND EDITION, GREATLY ENLARGED AND IMPROVED. " Considering a monopoly of the domestic market to its own manufacturers as the reigning policy " of manufacturing nations, a similar policy on the part of the United States, in every proper in- " stance, is dictated, it might almost be said, by the principles of distributive ivstice ; certainly by t'.ie " dutj' of endeavouring to secure to their own citizens a reciprocity of advantages."— flariuVfonV Report on Manufactures, p. 80. " Whatever tends to diminish in any country the number of artificers and manufactnrers,tends to "diminish the home market, the most important of all markets fur the rude produce of the land, and "thereby still further to discourage agriculture."— Smith's Wealth of Nations, Vol. II. 149. " Manufacturing establishments not only occasion a positive augmentation of the produce and " revenue of the society, but contribute essentially to rendering them greater than they could possibly " be nvithout such eitai/;>A?uen«s."— Hamilton's Report on Manufactures, p. 25. " The substitution of foreign for domestic manufactui-es is a transfer to fureigmnations of the nd- " vantages accruing from the employment of machinery, in the modes iu uhich it is capable of being " employed with most utility and to tlie gi-eatest extent."— Idem, p. 28. •* Manufacturing establishments afford occasional and extra employment to industrious indivi- " duals and families, who are willing to devote the leisur** res\ilting from the intennlssions of their " ordinai-y pursuits, to tollateral labang tliem for the toils of tlie countiy." — Mem, p. 29. " Let us not deceive ourselves by false appearances. A nation may carry on a gainful trade, " while its strength and vigour are declining. Its merchants may be enriched, while the statt " becomes nerveless and exhiausted."— ^wrf«'.Jon on Nati"ttal Industry, p. 28S. V PHILADELPHIA: PRINTED BY J. K. A. SKERRETT. 1826. Price 6 cents — and per dozen 50 cents.) POLITICAL ECONOMY. " Women and children are rendered more useful^ and the latter more early KsefuL ft// mani«facturing establishments, than they would othenrise be. Of the number of persons employed in the cotton ma- nufactories of Great Britain, it is computed that four-sevenths nearly are women and children; of whom the greatest proportion are chil- dren, and many of them of a very tender age."* " No earthly method remains for encouraging agriculture, where it has not reared up its head, that can be considered in any ivay effi- cacious, but the establishing proper manufactures in those countries you wish to encouras;e.^^'' "If a manufacture be established in any rich and fertile country, by convening a number of people into one place, who must all be fed by the farmer, without interfering with any of his necessary opera- tions, f/irj/ cv/nft/isft a ready market for the produce of his farm, and thus thi'Oic money into his hands, and give spirit and energy to his culture.'^' " Where a nation imposes high duties on our productions, or pro" hibits them altogether, it may be proper for us to do the same by theirs — first burdening or e.x'cluding those productions which they bring here in competition with our own of the same kind ; selecting next, such manufactures as we take from them in greatest quantity, and which at the same time we could the soonest furnish to ourselves, or obtain from other countries ; imposing on them duties light at first, but heavier and heavier afterwards, as other channels of supply open."* " Such duties, having the effect of indirect encouragement to do- mestic manufactures of the same kind, may induce the manufacturer to come himself into these states, where cheaper subsistence, equal laws, and a vent for his wares, free of duty, may insure him the high- est profits from his skill and industry. The oppressions of our agri- culture in foreign parts would thus be made the occasion of relieving it from a dependence on the councils and conduct of others, and of promoting arts, mamfactures, and population at home.^''^ " There are natural causes tending to render the external demand for the su7-plus of agricidtural nations a precarious reliance. The differences of seasons, in the countries which are the consumers, make immense differences in the produce of their own soils, in dif- ferent years; and consequently in the degrees of their necessity for foreign supply. Plentiful harvests with them, especially if similar ones occur at the same time, in the countries which are the furnishers, occasion of course a glut in the markets of the latter.'"* " There appear strong reasons to regard the foreign demand for our surplus produce as too uncertain a reliance, and to desire a sub- stitute for it, in an extensive domestic market."'' " If Europe will not take from us the products of our soil, upon terms consistent with our interest, the natural remedy is to contract, as fast as possible, our wants of her. ^^'^ " The uniform appearance of an abundance of specie, as the con- comitant of a flourishing state of manufactures, and of the reverse where they do not prevail, afford a strong presumption of their favour- able operation upon the wealth of a country. ^^^ 1 Hamilton's Report on Manufactures, p. 29. 2 Anderson on Industry, p. 70. ^Idem, 37. * Jefferson's Keport on tlic Privileges and Restrictions of the Commerce oi" the United States in Foreign Countries. ''Ibid. 6 Hamilton's Keport on Mamifactures, p. 35. ' Ibid. « Idem, 40. » Idem, 71. Twelfth Series. CURSORY VIEWS, ^'c.-~No. I. Eff'ects of the Restrictive System in France and Prussia — and of the Liberal System in Russia and Holland. Philadelphia^ Nov. 8, 1826. The following essays on political economy, are respectfully submitted to the consideration of those who have any interest in the welfare of this country, and desire that it may attain the high degree of prosperity to which its boundless advantages entitle it to aspire, and from which nothing but the most egre- gious impolicy can debar it. The arguments, like all the argu- ments on the same side of the question, are founded on facts, and on the uniform experience of all nations, whether their resources are withered and blighted, like those of Spain, Por- tugal, Poland, and Ireland, by an unsound policy, or fostered by wise statesmen, as those of France, England, and Prussia have been. Whereas, the "liberal system," as it is styled, par excellence., is founded on mere theory, and scouted by al- most every nation in the new and old world. Rejecting technical definitions, political economy may be defined to be the science of promoting national prosperity and happiness, by fostering industry, their only genuine source. On this subject, the opinions of mankind are at present ex- tremely divided. There are two schools — the new and the old. The old school professes, that the national agriculture, ma- nufactures and commerce, ought to be fostered and encour- aged by every honourable means that can be devised — and the interference of whatever would crush or depress them, ought to be prevented by duties more or less prohibitory, or by prohibitions, as the case may require. They believe with Alexander Hamilton, that — "Though it were true, that the immediate and certain effect of regulations controlHng the competition of foreign with domestic fabrics, was an increase ^^^ of price, it is universally true, that tlie contrary is the ultimate effect with ' every successful manufacture. IVhen a dotnestlc mamifadure has aituincd to ■5* perfection, and has engaged in the prosecution of it a competent number of per- ' sons, it iiivariably becomes cheaper. The internal competition, which takes place, soon does away every thing like monopoly, and by degrees reduces the price ♦ of the article to the minimum of a reasonable profit on the capital employ- ^ ed. This accords with the reason of the thing and with experience."* The new school, I believe, professes, that there should be no further restriction on importation, particularly of manufac- tures, than for the mere purpose of raising revenue by im- post. This, at least, is the idea held out on various occasions by its admirers, especially in the Salem memorial, to which I have so often had occasion to refer. * Hamilton's Report on Manufactures, p. 66. 409153 H « ( 4 ) " 11 is .1 sound political maxim," say the memorialists, " that the more free trade is, and the more widely it circidates, the more siu"e will be its prosperity. Krerij resfriction," [that is, every prohibition or duty,] "which is not indispen- $ihk for ihe purposes of revenue, is a shoal which wLU impede its progress, and not unfrequently jeopard its security." The Philadelphia chamber of commerce extend the doc- trine so as to admit of restrictions on articles necessary for warfare. They object against carrying " Restrictive legislation beyond the limits of u fair resm-t to trade for the pur- poses of revenue, and the case of public necessity, or high public exigency to prepare the country for the exigencies of war." On the subject of the doctrines of the new school, the fol- lowing opinion of the Quarterly Review claims great atten- tion : — " // is a strotig reason to doubt the practicability of these schemes, that statesmen have no where ventured upon them,- not front ignorance, as has been petulantly pretended, but from extended knowledge. Neither in old nor new states, do le- gislatures find the Utopian ideas of these philosophers to be feasible: yet Adam Smith, the great advocate for the most unrestricted trade, is read in all coun- tries and languages, and his doctrines have been moulded into all shapes, r'hethcr to inform youth or puzzle the learned ! ! ! Reflection and practice seem lo show, that this valuable writer, in the zeal of his argument, carried too far his views of freedom of trade, as he assuredly did those of unlimited production and unrestrained parsimony."* Experience is the only true test of theory. Without that guide, theory is an ignis fatuus^ " That leads to bewilder — and dazzles to blind." If a college of the most profound men in any other science, were assembled, and .with their united wisdom devised the most plausible theory that could be conceived — if on trial it were found and proved erroneous, by any individual, inferior to the lowest of the college, it would be rejected by the world. Believing this rule to apply in a preeminent degree to political economy, I submit to the reader the results, in different countries, of both systems. If unbiassed, he will have no difficulty in forming a correct decision. France enforces the restrictive system rigorously. By the protection it affords her industry, she has rapidly recovered from the wounds inflicted on ht-r prosperity by a war of ex- treme length, and most enormous expenditure; by a military contribution of S 100,000,000; by a subjugation of two years to enraged and lawless armies ; and by the loss of nearly all her colonies, of which one was the most valuable in the world. She is rajjidly paying off her debt, diminishing her taxes, and steadily maintains a specie currency. Russia, in 1818, in an evil hour made the pernicious expe- riment of the " liberal system." In two years it overspread the nation with distress and bankruptcy, and she was obliged to abandon it, and renew the restrictive system, whereby she is slowly recovering from the sufferings inflicted by the ex- * Quarterly Review, No. 48, p. 301. (- 5 ) periment. The emperor Alexander's description of the ef- fects of his innovation, ought to operate in terrorem to other nations. — He says, that the nation which adopts the liberal system " Offers a continual encouragemnnt to the manufactures oj other countries — and its oiun manufactures perish in the struggle xvldch they are unable to maintain. "It is with the most lively feelings of regret we acknowledge that it is ow oiun proper experience which enables us to trace this picture. The evils which it details, have been realized in Russia and in Poland, since the conclusion of the act of the 7-19 of December, 1818. AGUICULTURE WITHOUT A MAR- KET, INDUSTRY WITHOUT PROTECTION, LANGUISH AND DECLINE. Specie is exported, and THE MOST SOLID COMMERCIAL HOUSES ARE SHAKEN — and the public prosperity would soon feel the wound inflicted on private fortunes, if new regulations did not promptly change the actual state of affairs. "It is onlij after these losses have come to their height, after events have proved that OUR AGRICULTURE AND OUR COMMERCE, AS WELL AS OUR MANU- FACTURING INDUSTRY, ARE NOT ONLY PARALIZED, BUT BROUGHT TO THE BRINK OF RUIN, that his imperial majesty formed the resolution," &c. &c. Holland made the same experiment in 1816, and has been in a most depressed state ever since. Her manufactures have been prostrated — a large proportion of her population depriv- ed of employment — her revenues diminished — and a new and oppressive system of taxation been found necessary. The most determined partizan of the liberal system, if not under an irremovable bias, must be thunderstruck by the fol- lowing appalling graphic sketch of its calamitous results in Holland. " 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 world, 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 pai-t, the middle and working class, is circumscribed to the consumption of mere necessaries; and that manufac- tures and commerce being in a languishing condition, the profits of persons who follow those two branches of industry, are insignificant."* " It is the tariff of 1816, which has opened the door to the productions of foreign industry. Front that period there has been a constant deficiency in our finances ; because the working classes, deprived of wages, have been obliged to diminish their consumption of the articles subject to the excise and impost — and because the manufacturers, the merchants, and the traders, deprived of the profit which they derived from the disbursement of the most partof these wagcs, have hkewise been obliged to diminish their consumption. " It is since 1816, that the ninth part of the nation is reduced either to men- dicity, or to require assistance [for support.] "It is since 1816, that manufactures and commerce have declined with giant strides: " It is since 1816, that the metallic medium of the nation has been lavish- ed to pay tribute to foreign industry. •• This disappearance of the sjjecie is most perniciously felt by the reduc- tion of the price of houses, which, except in Brussels and the Hague, have fallen, since that period, more than one-third ,- an irrefragable proof ol" the ini- • Considerations sur le projet de loi, concernant le nouveau systemc finan- cier du royaume des Pays-bas. ( 6 ) povei'ishment of the nation; for if our resources were the same as fonnerly, houses would still command the same price."* •' It is ascertained that the immense number of breweries mid distilleries, which" formerly existed in both parts of the kingdom, have undergone prodigious dimi- nution."-\ " Since the tariff of 1816 has permitted the entry of Scotch stockings and thules under light duties — and since the English thules have almost annihilated our flourishing fabrics of lace, there is good reason to believe, that those poor tvO' Men earn at present but four sous per day."\ Prussia was several times ravaged by devouring armies during the seven years war. Her agriculture, manufactures, trade, and commerce, were laid prostrate. Few nations have ever been at a lower ebb — and it required every effort of the commanding talents of the great monarch that presided over her destinies, to resuscitate her industry. He was too profound a statesman to adopt the "liberal system," and thus add to and perpetuate the impoverishment of his country. He laid heavy duties on imports, and prohibited such articles as his own country could produce. He loaned money to manufac- turers to erect buildings, and purchase raw materials — and ex- pended out of his privy purse, in the erection of buildings, and in bounties and premiums, in two years, 265,448 rix dol- lars. His success was commensurate with the greatness of his efforts. The following views of the result of his policy af- ford a proud triumph for the restrictive system. " The king protects and encourages manufacturers in every possible manner, es- pecially by advancing large sums of money to assiM them in carrying on their ma- nuf(i/:tures, animating them by rewards, and establishing magazines of wool in all the littk towns, for the benefit of the small woollen manufacturers.^ Before the commencement of this reign, Prussia had but few silk manufactures, and those of little importance. But the present king has established and given liberal encou- ragement to so great a number, that they employ more than five thou- sand workmen; and the annual value of the goods manufactured by them is two milhons of crowns. — In the course of the last year 1,200,250 ells of silk stuffs have been manufactured at Berlin, and 400,000 of gauze."|| " We are in possession of almost every possible kind of manufactures; and we can not only exclusively supply the Prussian dominions, but also furnish the remote countries of Spain and Italy with linen and woollen cloths,- and our manufactures go even to China, where some of our Silesia cloths are conveyed by the way of Russia. We export every yeai' linen cloth, to the amount of sir MiLLiovs OF cnowNs, aud woollen cloths and wool to the amount of four mh- IIONS."^ "If the king has greatly increased population by his encouragement of agi-i- culture, he has advanced it as much, and perhaps more, by the great numbers of manufactures and trades of all kinds, which he has caused to be established, or to which he has given encouragement at Berlin, at Potsdam, and in almost every city and town in his dominions."** "It is with a view to encourage trade that the inhabitants of Berlin and Potsdam are exempted from military .service,- and his majesty grants nearly the same indulgence to the inhabitants of the circles of tlie mountains of Silesia, where the poor but industrious and sober weavers, who are settled in a nar- now and barren district, carry on those flourishing linen manufactures which * Idem, pp. 37, 38. f Idem, p. 31. ^ Idem, p. 5. § Hertzberg's Discourses delivered at Berlin, 1786, p. 25. Mdem. 26. t Idem, 23. '* Ibid. ( y ) produce us mi exportation of so many milUons; and to the little city of Illrchher^ onb/, a trade of two mtlHoiis of crowns annually. The king has in this district a canton for his foot -guards; but from his unwillingness to disturb the j)opu- lution of the district, he seldom draws from hence any recruits."* It cannot be improper to submit to the reader the sound reasons assigned by the monarch himself, for the wise course he pursued. " Wiicn a nation has few productions to export, and is obliged to have recourse to the industry of its neighbours, the balance of trade must neces- sarily be unfavourable. // pays more specie to foreigti nations than it receives from them. If that system continues, it must, in the course of time, be bereft of specie. Take from a purse daily, without replacing what you take, and it will soon be empty. Sweden affords a striking example. The only means to obvi- ate this disadvantage is to ina'case manufactures. A nation gains the whole on its own productions — and it gains from its neighbours, the value of the ma- nual labour. These positions, as true as they are palpable, served as the rules for the conduct of government. All its commercial operations were regulated by them. In consequence, in 1773, there were 264 new manufactories in the provinces. "■\ By the regeneration of his kingdom, after the frightful de- solation it had undergone, Frederic proved himself as pro- found a statesman, as he had previously proved himself a consummate warrior. Philadelphia, Nov. 10, 1826. HAMILTON. Twelfth Series. CURSORY VIEWS, ^c.~No. II. Salutary Effects of the Restrictive System in Great Britain. Her immense Resources. Awful results of the Liberal System in the United States., in 1784, 1785, and 1786. The case of England is the strongest in the annals of the world. Her population, including Wales, was, so late as 1811, inferior to that of Spain. The insularity of her situation is, it is true, a considerable advantage:}: — but not much greater than the peninsularity of Spain. Her natural advantages are inferior to those of many other nations. Yet she has, for half a century, enjoyed the most extensive commerce of any nation ancient or modern. The basis of that commerce is her manufactures, which she has carried to an extent, in many articles, wholly unprecedented. How were they brought to perfection? is an important question. By the restrictive sys- * Idem, 25. I (Euvres Posthumes de Frederic II. Roi de Prusse, torn v. p. 136. i The insularity of England is immensely beneficial so far as regards de. fence against invasion — but of far less advantage than is usually supposed as regards commerce. Nineteen-twentieths of her seacoast are almost wholly useless as to commerce — and carry on very little foreign trade worth notice. ( « ) tcm. She first secured the domestic market to her own sub- jects. This warranted the investment of capital, and called forth the exercise of the utmost industry and talent. Compe- tition produced moderate prices — and those moderate prices enabled her to compete with all the nations of the world to which she had access, and to triumph over their industry. So immense were the resources which she drew from her com- merce, based, let it be repeated, and never forgotten, on her manufactures, that she was enabled to subsidize half the mo- narchs of Europe, during a war of above twenty years dura- tion. She raised by loans and taxes, from the commencement of 1793 till the close of 1815, the enormous sum of ;^ 1,564,- 000,000,* equal to §6,938,000,000. By xvar taxes alone she raised ^T 640,000,000, equal to §2,880,000,000. In the year 1815, she raised bv taxes, no less than £ 70,403,448, equal to S 3 16,8 15,000, and by loans ^46,087,603 equal to S 209,390,- 000, amounting to the enormous total of S526,265,000.f This incredible extent of resources, greater than was ever attained by any other nation in the world, was the result of the decried restrictive system, although it has been most absurdly said, by men, too, of high standing in the parliament of England and the congress of the United States, that Great Britain has grown rich in spite of that system ! ! The same language has been held by the chamber of commerce of Phi- ladelphia, in a memorial ascribed by public fame, and with great appearance of truth, to*a barrister of the highest order of intellect and practice. " England has gro-ivn rich in spite of her restrictions upon trade, and not by men7is of them. Her -wisest slatesmeii are desirous of removing them, and can trace •ivith unerring certainty to their operation, a large part of the oppression under ^tlhich the fundamentalinterest of that nation languishes, and is doomed to lan- guish/.'//" It is scarcely possible to conceive of a more monstrous pa- radox. The Mexican government is following the policy which has raised France and England to the rank they hold in the scale of nations. The secretary of state, who was lately employed to prepare a tariff, prefaced it with the following, among other excellent reasons, for the course he pursued. " With regard to prohibitions, I liavc proceeded with all the cure recom- mended by authors on this subject — but have combined therewith the consi- derations demanded by our own industry — comprehending in this class [of prohibited articles,] every species of dress, sljoes, ready made clothes, manu- factures and productions, -ivhich ive can procure in our own country m sufficient abundance for our o-uility ofthis picture ? And who, admitting the fidelity of it, will not ad- mit at the same time, that '"'' the liberal st/xtem''^ has been n blight, and a blast, and a mildew to the resources and happi- ness of this country ? And who, again, admitting all this, will not admit that a radical change has become necessary ? And yet utterly untaught by those awful lessons, which ought never to be forgotten, the congress of 1816, by a most impolitic tariff, laid prostrate one-third of the manufactures — paralized one-third of the manufacturers of the country — and left us again dependent on Europe for numberless articles of prime necessity, with which a slight encouragement from government would enable us to supply ourselves. The duties were in most cases imposed solely with a view to revenue, for some leading members of congress hold the pre- posterous idea, that duties for the protection of manufactures were actually robberies perpetrated on the farmers ! ! "Suppose agriciiUure annually to bring liome ^ 40,000,000, slie would be annually robbed of $ 10,000,000 by a protecting duty of 25 per cent, for the benefit of capitalists ! ! ! !"* The distress and ruin caused by the impolitic tariff of 1816, w^re not confined to the manufacturers, who had in- vested millions of money in establishments, which provided supplies of necessaries, comforts, and conveniences, from which we were precluded by the war. Agriculture and com- merce were laid equally prostrate in two or three years. In a word, the effects of the " liberal system" of 1816, were nearly as disastrous as those that took place in 1784, 5 and 6. Not to extend this essay beyond a proper length, I offer in proof the strong statement of the secretary of the treasury, William H. Crawford, Esq. in a report, dated Feb. 12, 1820 — " Few examples liave occurred, of A IJISTHESS SO (iENKUAL AMD SO SEVERE, as that wbich has been exhibited in the United States." ♦ Taylor's Arator, No. VII. ( 17 ) Let me add an important corroboration. In 1821, thft revenue having fallen short, an excise was under considera- tion. But a committee of congress, to which the subject was referred, reported against the measure, on the ground, that "The imposition of an excise AT THIS SEASON OF EXTKEMK DIS- TRESS, would be unwise, and is not demanded by the state of the treasury.* If imposed, it wintld be difficult to collect : and, if collected, it would in some parts of ihe union, be in paper little available." Let it be observed, en passant^ that, notwithstanding the facts, that F.ngland, the greatest commercial, is the greatest ma- nufacturing nation in the world — and that almost every nation that has attained a high degree of commercial eminence, has carried on manufactures on a large scale, many of our politi- cians have fancied an hostility between commerce and manu- factures — and, in consequence, whenever an attempt has been made to afford legislative protection and encouragement to the latter, a deadly opposition to the measure has been ex- cited in our commercial towns. The chambers of commerce, frequently composed of a small proportion of merchants, and in many cases by no means a fair representation of the mercantile interest, are hastily called together, and memorials prepared and presented to congress, in many of which the most un- founded assertions are made — and it is assumed that the pro- posed measure will effect the utter ruin of commerce. This statement would be utterly incredible, had we not the most complete evidence before our eyes. The Philadelphia cham- ber of commerce, deprecating the alteration of the tariff that took place in 1824, implied that its immediate consequence would be utter destruction to the national prosperity — to our agriculture, trade, and commerce. We were threatened with the fiery indignation of Europe if we dared to touch the ark of the covenant, the tariff, whereby foreign manufacturers had a decided advantage over our own citizens. The menace was held out, that — " The United States must prepare to see the East Indies, the Brazils, the Black Sea, every portion of the g'lobe, stimulated by bounty to itself, and by restriction to us, to take our place in llie markets of Europe; to leave our cot- ton and tobacco upon our hands,- to leave In our docks, to perish, the two hundred thousand tons of shipping employed in their carriage,- to [cause us to] lose the six • This was a very great error, hardly admitting' of apology. Three millions of dollars had been borrowed the preceding- year — the sinking fund had been appropriated to discharge the current expenses of the g-overnment — the secretary of the treasury's report stated a deficiency of 4 or 5, OOU, 000 dollars. And yet the world were gravely assured that " the .'ttc/fe of the IrLCKurii did not demand the imposition of an excise f" But lo and behold, on the 3d of March, following, being only 25 d.ays from the date of the re]jort, the president sign- ed an act authorising a loan for $5,000,000! which, according to the decla- rations of the committee on the state of the treasury, must have been a most wanton exercise of power! It is difficult to refrain from strong comments on such monstrous errors. They will be easily supplied bv the reader. 3 ( 1» ) nr seven mitlions of freights which they earn ,■ to turn over to beggary the 10,000 seamen employed in their navigation, and th£ ship-builders, boat-builders, black- smiths, sail-makers, rope-makers, riggers, caulkers, joiners, and other artizans, who are employed in their construction." He who had read this Jeremiad, and was unacquainted with the real state of the case, could not by any possibility sup- pose, that the tremendous act which was "TO TURN OVER TO BEGGARY 10,000 SEAMEN"— and to ruin probably as great a number of mechanics, merely contemplated a small addition to the existing duties, averaging not more on the whole than six or eight per cent. He would suppose it was an act for the utter destruction of commerce — and would, therefore, not be much surprised to find the memorial assum- ing that consequence, and even actually ascribing that design to the framers of the act, as regarded a great portion of our importations : — " The effect," continue the memorialists, "is morally certain; so much so, AS ALMOST TO INFER THE INTENTION IN THOSE WHO PROMOTE THE CAUSE. /; is to paralize arid deaden at one blow, that portion of the com- jnercial capital of this country which is employed in the purchase, importation, an(i distribution of all that the new tariff shall exclude from the country; the ships which are built and navigated for its carriage; the numerous arti- sans who are employed in their equipment — the seamen who man them — and the fixed capital invested in wharves, ware-houses, and other property created as fa- cilities to trade. * * * *' Ojie arm of the nation is to fie cut off, or maimed forever, under the vain ex- pectation of promoting a better circtdntion in the other.'//" " II is intended by tliis portentous bill to cliunge the reUitions of the United States with the ivhole world; to compel her to manvfact^cre all she consumes; to depend for nothing upon a foreign country which it is physically possible for her to make; and fa withdraw her sanction from those mutual relations of dependence and exchange, vpon which the refnement and happiness of the world have been heretofore supposed to depend. ** * They cannot believe that comynerce and agriculture are to sink into insignificance, and that manufactures, like .iaron's rod, are to swallow them both up / /" It is melancholy to reflect on the delusion to which mankind have been subject in all ages, in times of effervescence, and in cases of conflicting interests. Who could have supposed that such a tissue of wild predictions, as unfounded as any of the soothsayings of the astrologers, should have emanated from the most eminent barrister in Philadelphia — been sanctioned by the chamber of commerce of this city — and ushered to the world under the respectable signature of Robert Ralston ? I dare say if the whole memorial, of the justice and cogency of which I have given a very fair specimen, were now read in a full chamber, the members would be struck with amazement at the extravagant predictions so inconsiderately hazarded, so entirely unwarranted, and so completely put down by the event. It ought to be read in every chamber of commerce and every coflfee-house in the United States once a day for a year, *m order to inspire more caution henceforward, and to prevent ( 19 ) the merchants being again led astray by the intemperate zeal of a few men of heated imaginations. One observation I beg to submit to the mercantile class for their most serious consideration. Scarcely a session passes over, that thej^ do not apply to congress for protection of one sort or other — for acts to countervail the selfish acts of foreign nations — for breakwaters — for light houses, &c. &c. Neither the agriculturists nor the manufacturers ever oppose these ap- plications, some of which have operated oppressively on both those classes, particularly the retaliatory acts, whereby the English and French were obliged, the English to open their ports to vessels of the United States, after a struggle of three years, and the French to repeal their discriminatorv duties on American tonnage. Is it then fair, is it liberal, is it generous, is it just, for the merchants to unite as a solid phalanx, from Maine to Savannah, to oppose every attempt to afford relief to their fellow citizens, however acute their distress, however intense their suffering? HAMILTON. Phiiada. Nov. 14, 1826. Twelfth Series. CURSORY VIEWS, ^x.~No. V. Mr. Huskisson's views mistaken and tnisstated. His system., a complete system of protection. Illiberal views on the subject of American four. Extracts from the existing British Tariff. Mr. Huskisson has been highly applauded by the profes- sors of the new school of political economy as one of their eleves, who has cut down all the barriers that prevented the British nation from ''^ purchasing ivhere articles could be had cheapest — the favourite dogma of that school. By the partisans of the old school, he has been equally censured for destroying the system to which they ascribe the transcendant power the nation has attained. I hope to make it appear that he had too much good sense to earn the praises of the one school, or the vituperation of the other — and that his sys- tem, so far as regards duties on imports, is generally, and almost universally, tantamount in its purpose to the. old one- It car- ries PROTECTION stamped on its front in most legible characters. The only difference between his system and the old one, is, that the former duties were calculated to protect ( 20 ) and foster nascent manufactures, and accordingly were very high — whereas, the present are calculated for manufactures arrived at perfection, and are consequently greatly reduced. In the temper of the public mind here, prone as it is to look to Europe for maxims and examples, this subject is of impor- tance, and requires to be rigorously scanned. Mr. Huskisson in his speech, of March 25, 1825, which introduced his celebrated propositions, utterly discounte- nances the idea attributed to him. He disclaims it in the very outset, in which he asks the support of parliament for his system only so far as it protects the national industrij. "In requesting the aUention of the committee while I state the alterations which T propose to recommend in the duties levied upon the importation of materials employed in some of our principal manufactures, and also in the pro- hibitory duties now imposed upon the manufactured productions of other countries, I need scarcely bespeak the disposition of the committee to counte nance the prhici/tle of these proposals, SO FAR AS THEY SHALL BE FOUND NOT INCONSISTENT WITH THE PROTECTION OF OUll OWN INDUS- TRY."* This is clear and decisive. It is the sound doctrine of the old school of political economists, whose unceasing aim was " the protection of the industry of the country,''^ against foreign competition — that protection which, I repeat, has for centuries secured nearly the whole of the domestic market to British subjects — brought their manufactures to perfection — and ena- bled them ultimately to undersell most nations in their own markets. On this single paragraph the question might be rested. It would admit of no appeal. But " proofs rise on proofs, and still the last the strongest." In discussing the duty on woollens, which was formerly from 50 to 67 per cent, he proposed, in consequence of the flourishing state of the manufacture, to reduce it to 15 per cent, which, he says, " will answer evert/ purpose of reasonable and fair protection.''''] Here, we find no idea of "buying cheap goods abroad" — not a word of the new school doctrines. " Protection" is still the order of the day. On the subject of cottons, he is more diffuse. I shall there- fore quote him at full length. •' I \\ ill begin with our greatest manufacture, that of cotton. It will not be denied that in this manufacture, -we are superior to all other countries; and that f>i/ the cheapness and quality of our goods, -we undersell our competitors in alt the markets of the world, -wldch are open alike to its and to them. I do not except the market of the East Indies, (the first seat of the manufacture,) of which it may be said to be the staple, where the raw material is grown, where labour is cheaper than in any other country, and from which England and Europe were for a long time supplied with cotton goods. Now, hoivever, large quantities of * Huskisson's Speech on Foreign Commerce, London, 1825, p. 35. t Idem, 42. ( 21 ) Bristiah ffooch are sold in India, at prices loiuer than they can be produced by the native muniifacturers. If any doubt could remain that this manukactciif, has ■ROTHINU TO APPHEUF.ND FROM COIMPETITION AM WIIERK, ANn LKAST OK ALL IN oun HOME MARKET, it must vanish when I state to the committee, that the official value of cotton goods exported last year, amounted to the astonishing- sum of£30,795,000."» Here, again, we see that the ground of the reduction of the duty to ten per cent, was not to afford an opportunity of buy- ing cheap goods abroad — but the British '"'' superiority to all other countries'*^ — their being able " to undersell their competitors i7i all the markets of the world^'' — and finally, their having " no- thing to apprehend from competition any where — but least of all in their own markets.'''' Mr. Huskisson clearly admits that for manufactures in their outset, or labouring under disadvantages in the competition with foreign rival articles, a duty of 30 per cent, may be right and proper ; but further than this, he says, he would not pro- ceed. He abandoned this ground, however, in the progress of the tariff. Many articles are dutied higher — some as high as 75 per cent. " Thirty per cent, is the highest duty which could be maintained for the PROTKCTION OF A MANUFACTURE [that of silk] in every part of which we are most behind foreign countries — the only extensive manufacture, -which, on the score of general inferiority, stood in 7ieed of S>VEji^\.k\ji PROTECTION."'] He adds : — " When the duty is imposed to protect our oion manufactures, and not for the pur- pose of collecting revenue, it will in no instance exceed 30 per cent. If the article be not manufactured much better and cheaper abroad than at home, 9CCH A DUTY IS AMPLE FOB PROTECTION.''^ Again — " With the knowledge of this fact, that we furnish — in a proportion far exceeding the supply from any other country — the general markets of tlie world with all the leading articles of manufacture, upon which I have now proposed greatly to lower the duties, I own that I am not afraid of this coun- try being overv>helmed -with foreign manufactures. Some, 1 know, will coise in which are now excluded. I shall be glad of il."^ " With regard to the danger of our being undersold in our own markets, it does not hold at atL"\\ What shall we say of Mr. Huskisson's views, respect- ing American flour ? How are they to be reconciled to " the liberal system?" to ''^ the relaxation of the rigour of the systems of Europe f"* to the ardent desire of" removing the restrictions upon trade^'' which cuts so distinguished a figure in the me- morial of the Philadelphia Chamber of Commerce ? When the clause for the admission of Canadian flour was under consideration, he was warned of the danger of American flour being thus smuggled into Great Britain ; in reply to which he stated, that — " He should be quite willing to adopt any method necessary to prevent /Ae fraudulent mixing of the United States' corn, with the corn of Canada. • Idem, p. 3r. t ^^id. tidem, p. 50. ^ Idem, p. 53. Q Idem, p. 56. ( ^s ) " If, upon tlie averag-e of the next five years, it was found that 100,000 quar- ters of corn were imported annually from Canada, he should be prepared to sus- pect that it was not Canadian corn, and disposed to adopt methods for the preven- tion of that fraudulent mixture ivhich such an average would establish. " With a view of removing all cause of alarm, and giving a?j adequate secu- rity against the fraudulent introduction of Canada [American] ivheat, he should propose as a clause, by way of rider, that there should he the same certificate of origin as in the case of sugar." ♦ * " The protecting duty -which he should propose against the introduction of American corn into this country, would be precisely the samo as that ivhich already existed in the Canadas." Thus while this nation consumes annually from 28 to 32,000,000 dollars of British manufactures, our farmers, who are suffering intense distress for want of a market for their bread-stuffs, are, if possible, to be prevented even from smug- gling a single barrel of flour into England for the use of the manufacturers of that nation ! and we are even threatened with the resentment of Great Britain, if we increase our du- ties five or ten per cent! "I appeal," says Judge Cooper, "to men conversant with the subject, that she can supply herself in half a dozen or ten years with rice from the East Indies, cotton from Brazil, and tobacco from the Crimea!! !'* I presume that no comment can be necessary on this subject. The following extracts from Mr. Huskisson's tariff, as now in operation, will show the extent of the error that prevails on the subject — and fully prove how careful this wise states- man has been of the national interest. Per cent. Per cent. 60 Pencils, black lead - - - 30 Almond paste - - - - Beads ..... Carriages of all sorts Chalk, prepared ... Copperplates engraved - Crayons Extract of cardamons, coculus indi- cus, &c. . . - - Hides, or pieces of hides, in any way dressed . - - Linen sails .... Pomatum .... Stone pots .... Sskins, tanned or in any way dressed .... Filtering stones Slates Telescopes . . . - Files of all sorts Tobacco pipes . . - Turnery . . - - - Tooth powder ... Mats and matting ... Musical instruments Pencils, black lead - . - Wrought iron, not otherwise de- scribed .... 20 Pewter wares - - - 20 Manufactures of steel, not other- wise described - - - 20 Tin ware .... 20 Artificial flowers not made of silk 25 Boxes of brass, copper, japanned, lacquered ware, tin, iron, tute- nague . 20 Japanned ware - 20 Glass wares » 20 Toys, brass . 20 Feathers, dressed - . 20 Leather, manufactures of 30 Threads not otherwise enumerated 25 Articles manufactured of hair - 30 Tinfoil - . 25 Clocks - . 25 Needle work of thread or silk . 30 (iilt or plated wire - . 25 Linens - . •40 Lacquered ware - - 30 • The duties on linens are specific. But " in lieu of those duties upon li- nens of all sorts," it is '• at the option of the importer, to pay the above duty nf forty per cent." Itt. Per cent. 30 Ajjates or cornelians, set 20 30 Buttons, of gold, silver, or precious 30 stones ... 20 Gauze, of thread 30 20 Jewels, set - - . 20 20 Luces of all kinds - 30 Watches of all kinds 25 20 Silver wire ... 25 Paintings on glass . 30 30 Brocade of silver or gold 30 Manufactures of copper - 30 30 Silks not enumerated 30 ( S3 ) Per cent. Painters' colours, not enumerated Fur gloves or mits - Camels' hair pencils Itoxes, of horn, ivory, papei", tor- toise or other shells Boxes, gold .... All non-enumerated articles, partly or wholly manufactured IVIanufactures of brass, if not other- wise described ... China ware, painted, gilt or orna- mented . - . - Many of the specific duties are higher than any of those in the preceding list. Tobacco, for instance, from the United States, is dutied at 4s. per pound,* which, on the average, is equal to about 1400 per cent. Segars pay 4 dollars per lb. Porter bottles pay 3s. per dozen, which is about 85 per cent. On three-fourths of the articles, the British duties arc higher than the American. When the reader has examined the premises with the scru- pulous attention to which the great importance of the subject entitles them, candour will compel him to admit that the views of Mr. Huskisson have been entirely mistaken, not only here, but in his own country — and that that sagacious minister never for a moment entertained the suicidal idea of breaking down the barriers that protect the national industry. What now becomes of the statement so confidently made seven years ago by an amiable judge of the Supreme Court of the United States, that — "The statesmen of the old world, in ADMIRATION OF THE SUC- CESS OF OUR POLICY ! ! ! ! arc relaxing the rigour of their svstems, and yielding themselves to the rational doctrine, that national wealth is best pro. moted by a. free interchange of commodities, on principles of perfect reciprocity .'.'.' .'"\ What becomes of the declarations so confidently hazarded, in the face of strong fact, that England had removed all her restrictions on trade ? What becomes also of the declaration of that eminent lawyer, Daniel Webster, Esq. that — "If we now embrace the system of prohibitions and restrictions, we shall •how an affection for what others have discarded, and be attempting to adorn ourselves with cast-off apparel." • This statement is taken from " a table of the consolidated duties and draw- backs, commencing Jan. 5, 1826." But in a Liverpool circular of July 22, 1826, the duty Is stated at 3». per pound " giving bond to pay Is. more, if de- manded." ■j- Nothing can be conceived more erroneous than the ground taken here by the judge in question. In the first place, no relaxation had then, 1820, taken place in the protecting duties of any nation in the world, except Russi;i, so far as regards " the free interchange of commodities on principles of jjer* feet reciprocity," — in the next place, the distress at that very time, among the farmers, manufacturers, and merchants, of the United States, resulting from "the succkss of that policy" which had excited "the AnMiHATioN of the STATESMEN OF THE OLD WORLD," was little short of what England has recently experienced, except so far as regards the want of the necessaries of life. The judge, however, could not be answerable for the error — as he relied on the information of the mercjiants of Salem, for whom he wrote the memoi'ial. ( «* ) We see that the " apparel" is hot " cast q^." We need not " adorn ourselves xvith''^ the '"''cast offs " of Europe. We must make " apparel" for ourselves. That of England was, it is true, a little out of date — and some of its decorations were quite superfluous — but it is plain, that it is newly arranged — its superfluities cut oflT — and it is just as well fitted for the important office of protection, as when it came out of the hands of the original workmen. I now draw these essays to a close. The paramount im- portance of the subject will afford sufficient apology for the reiteration of arguments — many of which I have repeatedly ofllered to the public consideration during the [nearly] eight years I have devoted to the discussion . They must be repeat- ed from time to time until they are either refuted, which they have never been yet — or until they are adopted by our statesmen. A man with as sound a head, and as pure a heart as ever ex- isted, denounced that species of impolicy of which our statesmen have been guilty, that is, assuming an hostility of interests be- tween manufactures and agriculture — and clearly predicted its ruinous consequences wherever the baleful idea prevailed. " To aim at separating the interest of mamifaclures from that of affricvlture, is Uke endeavouring to separate the shadoiv from its substance ; and every attempt to do this, as it is at the same time foolish and unjust, must end in the dis- appointment of its projector, and prove DE'l'ltlMENTAL TO THE INTE- RESTS OF THOSE VERY PERSONS IT WAS MOST INTENDED TO SERVE."* Never was a prophecy more completely fulfilled than this has been among the farmers, and planters, and merchants of this country. All the desolation that has so often, within the last eleven years, fallen so heavily on these three classes, has arisen from " separating the interests of manufactures from those of agriculture^'' — in other words, from perniciously ne- glecting the wise admonition conveyed in the fable of " the Belly and the Members:' HAMILTON. Philadelphia^ Nov. 16, 1826. • Anderson on National Industry, p. 205. N. B. Some of the same odious features that marked the tariff of 1789, cha- racterize the existing tariff. Necessaries of life are dutied far higher than luxuries. Bohea tea pays 12 cents per lb. equal Silks, from Europe, - - 20 to 85 Watches ... . 15 Coffee 5 cents, equal to 50 a 60 Fine porcelain - - - 20 Brown sugar 3 cts. equal to 75 a tlOO Velvets ----- 25 Salt 20 cents per bushel, - 150 I Girandoles - - - - 25 i The annals of inconsistent or unfair and oppressive legislation furnish no- thing more reprehensible than this duty. The wealthy sugar planters, mak- ing fortunes of 5, 10, or 15,000 dollars per annum, are protected by a duty of 75 a 100 per cent, on a bulky necessary of life — while the poor manufac- turer of cotton stockings meets foreign competition under a duty of only 25, which is, in fact, almost altogether "a duty imposed for the purpose of revenue." And the sugar planters, thus revelling in such extraordinary pro- tection, have uniformly voted against any increase of duty for the protection of their fellow citizens ! ! Alas ! poor human nature ! ( S5 ) POSTSCRIPT. As many of our citizens have very imperfect and very incorrect ideas of the extent and importance of our manufactures, and the aid they aft'ord to agriculture and commerce, it may be useful to present a brief view of the subject. Let it be observed that the information contained in the heads from No. 1 to No. 7, is drawn from official documents, and other authentic information, and may therefore be fully relied on. The others are only given as estimates, and approxi- mations as near to fact as possible. The reader will make sucli ad- ditions to, or deductions from, those items, as he may judge proper. 1. The persons concerned in, or depending on manufactures, at the last census, amounted to 1,351,622. They are at present at least 1,750,000. 2. In 1820 they constituted fourteen per cent, of the population of the Uitifpil States., uhite and coloured; and twenty-two per cent, of the population of Maine, Vermont, New Hampshire, Massachusetts, t'ontiecticut, Rhode Island, New York, New Jersey, Pennsylvania, Delaware and Maryland. 3. The manufactures exported last year, constituted 25 per cent, of all our domestic exports, cotton and tobacco excepted. They were 25 per cent, more than the articles furnished by the forest — 200 per cent, more than those furnished by the sea — 120,000 dollars more than the amount of all the wheat, flour, Indian corn and meal, rye and rye meal, oats, potatoes, &c. — nearly double the amount of the animals and animal food — and 80 per cent, of the amount of tobacco. Exports of the United States, for the year ending October 31, 1825. Total domestic exports .-------$ 66,994,745 Cotton 36,846,649 Tobacco -- 6,115,623 .Manufactures 5,729,797 Wheat, flour, Indian corn, meal, 8;c. ----- 5,601,473 Articles furnished by the forest 4,938,049 Animals and animal food ...---. 3,314,793 Articles furnished by the sea 1,595,065 4. Our manufactures exported the last and present year, have been more generally profitable to our merchants than any of our great sta- ples. On the former losses have rarely occurred — whereas losses on the latter have been frequent and ruinous. 5. The persons engaged in, or dependent on, manufactures, are very nearly five times as numerous as those engaged in trade, (includ- ing shop-keeping,) and in commerce. 6. The manufacturers furnish a market for the whole of the wool, flax, hemp, hides, skins ; one-fifth of the cotton ; and four-fifths of the vegetables, poultry, flour, and animal food produced for sale by the agricultural class. 7. The manufactures of the United States have arisen to their present extent, importance, and perfection, without having ever re- ceived the patronage of the government, in the shape of immunity, privilege, premium, or bounty — a case unexampled probably in the history of the world. In England, France, Prussia and other Eu- ropean countries, money has been lavished in bounties and premiums, and immunities and privileges bestowed on manufacturers, to bring their manufactures to perfection. 8. The capital invested in the woollen manufacture in the United States, has been estimated at 850,000,000 — and a sum at least equal in the cotton branch. That in all the other branches is at least equal to these two— making a total of g 200,000,000. 9. Supposing each person engaged in or dependent on manufac- tures, (1,750,000,) to consume only to the amount of 75 cents per 4 > ( 26 ) week, of food and drink, it amounts to a market for the farmers of g 68,250,000 per annum, being more than six times the amount of the market for vegetable and animal food furnished by all the foreign world, ^810,841,511.) 10. Supposing that of the persons concerned in, or dependent on, ma- nufactures, one-fourth part, say 440,000, are operatives, and consume of wool, flax, cotton, hemp, hides, skins, &c. at the rate of lialf a dollar per day, each, it amounts to g 68,640,000. Thus the manu- facturers furnish a market to the agriculturists, for provisions and raw materials to the amount of about g 136,000,000 per annum. 11. By the return of the Marshals, in 1810, it appeared that the amount of the manufactures of the United States, then, was S 127, 694,602. The returns were manifestly and greatly imperfect — and 'lench Coxe, Esq. who was employed to adjust and arrange them, stated them at S 172,762,676. Our woollen and cotton manufactures have since that period certainly increased ten-fold. All others, then existing, have greatly increased, though not to the same extent. Va- rious important manufactures have been established since that period. I presume from the premises, therefore, it will be admitted to be a mo- • ^ derate estimate, that they now amount to 55 "^0,000,000. ^ •* 12. If the wages of tlie operative* average only four dollars per week, they amount annually to S 88,000,000. 13. The freight on the raw materials imported into this country for the use of the manufacturers, and that derived from the coasting trade in domestic raw materials, and domestic manufactures, is pro- bably twice as much as the freight of all the rest of our commerce, cotton excepted — and five times as great as that derived from the importation of foreign manufactures. This, gentle reader, is the class which has been styled by Dr. Jones, President of the Nottaway Agricultural Society, and been too frequently regarded by those statesmen who regulate the policy of this country, as "/Ae most insignificant and iticunsiderable interest in the nation ! .' .'" N. B. In stating the effects of the restrictive system, I forgot two all-important circumstances, which, alone, would, with unprejudiced men, settle the question between tlie two systems forever beyond the power of appeal. The acts in favour of American navigation, referred to in page 14, and the act imposing the square yard duty on coarse cottons, were in the most direct hostility with the liberal sys- tem, and carried the vituperated restrictive system to the utmost ex- tent. What has been the result.** Have they been unfavourable to the nation ? Have they proved the impolicy or injustice of '• the restrictive system," and that it "taxed the many for the benefit of the few." No — no — no. Never had any system a prouder triumph over its opposers. In the case of the navigation of the United States, the protection it experienced, increased it as follows. It v/as Tons. Tons. In 1789 only - - - 201,502 1790 . - - . 478,377 1792 - . - - 564,437 la 1796 .... 831,700 1798 ... - 898,328 ISUl .... 1.033,218 The increase, after 1792, arose, it is true, partly from the wars of Europe. I'ut before that year, it proceeded wholly from our naviga- tion act. The case of coarse cottons is equally strong. The protecting duty on those articles has been and is from 50 to 100 per cent. Has that duty " taxed the many for the benefit of the few?''^ No. It has, on the contrary: furnished an article of treble the durability and value, at a price from 25 to 30 per cent, lower than the rival one. Away then with idle assertions and wild theory, when opposed to solid facts.