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of succeding in manufacturing pursuits, in the United States, having now been discussed, the consider
immensely different effects upon the wealth and presperity of nations.
ations, which have appeared in the course of the From these circumstances collectively, two imJiscussion, recommending that species of industry portant inferences are to be drawn; one, that there to the patronage of the government, will be matc. is always a higher probability of a favorable balance rially strengthened by a few general and some par-i of trade, in regard to countries, in which manufacscular topics, which have been naturally reserved tures, founded on the basis of a thriving agriculture. for subsequent notice. - - flourish, than in regard to those, which are confined 1. There seems to be a moral certainty that the wheily or almost wholly to agriculture; the other, trade of a country, which is both manufacturins (which is also a consequence of the first) that counand agricultural, will be more lucrative and pros. tries of the former description are likely to possess perous, than that of a country which is merely agri- more pecuniary wealth, or money, than those of the cultural. | latter. one feason for this is found in that general effort; but the uniform appearance of an abundance of of nations (which has been already mentioned) to specie, as the conconstant of a flourishing state of procure from their own soils, the articles of primo manufactures, and of the reverse, where they do not #ecessity requisite to their own consumption, and prevail, afford a strong presumption of their favorause; and which serves to render their demands for ble operation upon the wealth of a country. a foreign supply of such articles in a great degree Not only the wealth, but the independence and occasional and contingent. Hence, winile the ne-' security of a country, appear to be materially conossities of nations exclusively devoted to agricul- nected with the prosperity of manufactures. Eveoure, for the fabrics of manufacturing states, are ry nation, with a view to these great objects, ought constant and regular, the wants of the latter for to endeavor to possess within itself all the essen-f ale products of the former, are liable to very cousi, tials of national supply. These comprise the means. derable fluctuations and interruptions. The great of subsistence, habitation, cloathing and defence. inequalities, resulting from difference of seasons.". The possession of these is necessary to the perhave been elsewhere reinarked: this uniformity of fection of the body politic, to the safety as well as demand, on one side, and unsteadiness of it on the to the welfare of the society; the want of either, is other, must necessarily have a tendency to cause ithe want of an important organ of political life and
the general course of the exchange of commodities
that a differenge of situation, in this particular, has
motion; and in the various crises which await a state,
ductions, from the primative value of the articles
furnished. The charges on manufactored supplies brought from Europe, are greatly enhanced by the same circumstance of distance. These charges, again, in the cases in which our own industry maintains no competition, in our own markets, also principally fall upon us; and are an additional cause of extraordinary deduction from the primative value of our own products; these being the materials of exchange for the foreign fabrics which we consuune. The equality and Anoderation of individual property, and the groying settlements of new districts. occasion, in this country, an unusual demand for [Por conclusion see first page of th; next numberl
New series. No. 19–Vol. IV.] BALTIMORE, JULY 3, 1819. [No. 19–Vol. XVI. Wholy No. 409
PRINTED AN1) PUBLISHED BY H. NILES, AT $5 PER ANN UM, PAYA M LE IN ADVANCE,
To conclude the 9th number, and prevent a break in the matter when the volume is bound, the original and miscellaneous articles are thrown back to Page 308.
The 11th No. of the “address of the Philadelphia Society for the promotion of national industry” is received. It contains a great body of highly important statistical facts, such as should be familiar to every reflecting man, and we will give it a place in the Register as soon as possible. ,
coarse manufactures; the charges of which being
These disadvantages press with no small weight on the landed interest of the country. In seasons of peace, they cause a serious deduction from the intrim,ic value of the products. of the soil. In the time of a war, which should either involve ourselves, or another nation, possessing a considerable share of our carrying trade, the charges on the transportation of our commodities, bulky as most of them are, could hardly fail to prove a grievous burden to the farmer, while obliged to depend in so great a degree as he now does, upon foreign markets, for the vent of the surplus of his labor.
It is not uncommon to meet with an opinion, that though the promoting of manufactories may be the interest of a part of the union, it is contrary to that of another part. The northern and southern regions are sometimes represented as having adverse interests in this respect. Those are called manufacturing, these agricultural states; and a species of opposition is inagined to subsist between the ma-. nufactoring an agricultural interest. .
This idea of an opposition between those two interests is the common error of the early periods of every country; but experience gradually dissipates it. Iadeed they are perceived so often to succour
market for the surplus produce of the soil, is alone
"which serve to fortify the idea, that the encourage
ment of manufactures is the interest of all parts of the union. If the northern and middle states should be the principal scenes of such establis unents, they would immediately be nefit the more southern, by creating a demand for productions, some of whic!. they have in common with the other states, and others of which are either pecular to them, brotore abundant, or of better quality than elsewhere. These productions, principaliy, are timber, flax, hemp, cotton, wool, raw solk, in Higo, iro, Je . . . .'s, hides, skirts and co.'s of these art cies corontani indigo are peculiar to the southern states; as are, hitherto, lead and coal; flax and hemp are or 11..y be raised in greater abundance there, than in the more northern states; and the wool of Virginia is . said to be of better quality than that of any other
and to befriend each other, that they come a length state: a circumstance readered the more probable to be considered as one: a supposition wi.ich has by the reflection, that Virginia ealbraces the same been frequently abused, and is not universally true. latitudes with the sinest wool contries of Europe. “ Particular encouragements of particular manufac- he climate of the south is also better adapted to tures may be of a nature to sacrifice the interest of the production of silk.
landholders to those of manufacturers, but it is no- The extensive cultivation of cotton can periaps vertheless a maxim well estabi saed oy experience, hardly be expected, but from the previous estaoand generally acknowledged where there has been lishment of domestic manufactor.es of the article;
sufficient experience, that the “aggregate” prosperity of manufactures, and the “aggr, rate” prospevity of agriculture are intimately connected. In the course of the discussion which has had place, various weighty considcrations have been adduced operating in support of this maxim. Perhaps the superior steadiness of the demand of a domestic vor. XVI.--21:.
and the surest encourage inent and vent for the others, would result from similar establishments in respect to them. A full view having now been taken of the inducemen's to the promotion of manufactures in the United States, accompanied, with an examination of the principal objections which are commonly urged in
opposition, it is proper in the next place, to conside: the means by which it may be effected, as introductory to a specification of the objects which, in the present state of things, appear the nost fit to be encouraged, and of the particular measures which it may be advisable to 3 opt, in respect to each. In order to a better judgment of the means pro: yer to be resorted to by the United States, it will [. of use to advert to those which have been cmployed with success in other countries. The Princopal of these are– 1. Protecting duties—or duties on those foreign articles which are the rivals of the domestic ones intended to be encouraged. Duties of this nature evidently amount to a virtual bounty on the domestic fabrics, since, by enhang
lic opinion than some other lilodes—its advantages are these— 1. It is a species of encouragement, more positive and direct than any other, and for that very reason, has a more immediate tendency to stimulate
ing the charges on foreign articles, they enable and uphold new jo. the chances
their national manufacturers to undersell all their foreign competitors. The propriety of this species of encouragement need not be dwelt upon; as it is not only a clear result from the numerous topics which have been suggested, but is sanctioned by the laws of the United States, in a variety of instances: it has the additional recommendation of being a resource of revenue. Indeed all the dutics inposed on imported articles, though with an exclusive view to revenue, have the effect in contemplation, and, except where they fall on raw materials, wear a beneficent aspect towards the manufactures of the country. II. Prohibitions of rival articles, or duties equivalent to prohibitions. This is another and an efficacious means of encouraging national manufactures: but in general it is only fit to be employed when a manufacture has made such a progress, and is in so many hands, as to insure a die competition, and an adequate supply, on reasonable terms. Of duties equivalent to prohibitions, there are examples in the laws of the inited States, and there are other cases to which the principle may be advantageously extended: but they are not numerous. 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 instance, is dicuated, it might almost be said, by the principles of distributive justice; certainly, by the J. of endeavoring to secure to their own citizens a reciprocity of advantages. ill. Prohibitions of the exportation of the materials of manufactures. The desire of securing a cheap and plentiful supply for the national workmen, and where the articie is either peculiar to the country, or of peculiar quality there, the jealousy of enabling foreign workmeu to rival those of the nation, with its own ma'terials, are the leading motives to this species of regulation. It ought not to be affirmed, that it is in no instance proper; but it is certainly one which ought to be adopted with great circumspection, and only in very plain cases. It is seen at once that its immediate operation is to abridge the demand and keep down the price of the produce of some other branch of industry, generally speaking, of agriculture, to the prejudice of those who carry it : on; and though of it be really essential to the prosperity of any very important national manufacture, it enay happen that those who are injured in the first instance, may be eventually indemnified, by the suerior steadiness of an extensive domestic market depending on that prosperity: yet in a matter, in which there is so much room for nice and difficult rembinations, in which such opposite considera
of profit, and diminis
ling the risks of loss, in the first attempts. 2. It avoids the inconvenience of a temporary augmentation of price, which is incident to some other modes, or it produces it to a less degree; either by making no addition to the charges on the rival foreign article, as in the case of protecting duties, or by making a smaller addition. The first happens when the fund for the bounty is derived from a different object (which may or may not increase the price of some other article, according to the nature of that object;) the second, when the fund is derived from the same or a similar object of foreign manufacture. One per cent. duty on the foreign article, converted into a bounty on the domestic, will have an equal effect with a duty of two per cent. exclusive of such bounty; and the price of the foreign commodity is liable to be raised, in the one case, in the proportion of one per cent. in the other, in that of two per cent. Indeed the bounty, when drawn from another source, is calculated to promote a reduction of price; because, without laying any new charge on the forcign article, it serves to introduce a cempetition with it, and to increase the total quantity of the article in the market. 3. Bounties have not, like high protecting duties. a tendency to produce scarcity. An increase of price is not always the immediate, though, where the progress of a domestic manufacture does not counteract a rise, it is commonly the ultimate effect of an additional duty. In the interval, between the laying of the duty and a proportionable increase of price, it may discourage importation, by interfering with the profits to be expected from the sale of the article. 4. Bounties are sometimes not only the best, but the only expedient, for uniting the encouragement of a new object of agriculture, with that of a new object of manufacture. It is the interest of the farmer to have the production of the raw material promoted, by counteracting the interference of the foreign material of the same kind—It is the interest of the manufacturer to have the material abundant or cheap. If, prior to the domestic production of the material, in sufficient quantity, to supply the manufacturer on good terms, a duty be laid upon the importation of it abroad, with a view to promote the raising of it at home, the interest both of the farmer and manufacturer will be disserved. By either destroying the requisite supply, or raising the price of the article, beyond what can be afforded to be given for it, by the conductor of an infant manufacture, it is abandoned, or fails; and there being no domestic manufactories, to create, a demand for the raw material, which is raised by the farmer, it is in vain, that the competition of the like foreign articles, may have been destroyed.
- It cannot escape notice, that a duty upon the importation of an article can no otherwise aid the domestic production of it, than by giving the latter greater advantages in the home market. It can have he influence upon the advantageous sale of the article produced, inforeign markets; no tendency therefore to promote its exportation. The true way to conciliate these two interests, is to lay a duty on foreign manufactures of the material, the growth of which is desired to be encouraged, and to apply the produce of that duty, by way of bounty, either upon the production of the material itself, or upon its manufacture at home, or upon both. In this disposition of the thing, the manufacturer commences his enterprize, under every advantage, which is attainable as to quantity or price of the raw material: and the farmer, if the bounty be immediately given to him, is enabled by it to enter into a successful competition with the foreign material: if the bounty be to the manufacturer on so tnuch of the domestic material as he consumes, the operation is nearly the same; he has a motive of interest to prefer the domestic commodity, if of equal quality, even at higher price, than the foreign, so long as the difference of price is any thing short of the bounty, which is allowed upon the article. • Except the simple and ordinary kinds of househeld manufacture, or those for which there are very commanding local advantages, pecuniary bounties, are in most cases indispensable to the introduction of a new branch. A stimulus and a support not less powerful and direct is, generally speaking, essential to the overcoming of the obstacles which arise from the competition of superior skill and maturity elsewhere. Bounties are especially essential, in regard to articles, upon which those foreigners who have been accustomed to supply a country are in the practice of granting them. The continuance of bounties on manufactures Hong established, must almost always be of question*able policy; because a presumption would arise in every such case, that there were natural and inherent impediments to success. But in new undertak. ings, they are as justifiable, as they are oftentimes thecessary. * -There is a degree of prejudice against bounties, from an appearance of giving away the public money, without an immediate consideration, and from a supposition, that they serve to enrich particular classses, at the expense of the community. But neither of these sources of dislike will bear a serious examination. There is no purpose to which Public money can be more beneficially applied, than to the acquisition of a new and useful branch of industry; no consideration more valuable than a permanent addition to the general stock of productive labor. As to the second source of objection, it equally iies against other modes of encouragement which are admitted to be eligible. As often as a duty upon a foreign article makes an addition to its price, it £auses an extra expense to the community, for the benefit of the domestic manufacturer. A bounty does no more. But it is the interest of the society, in each case, to submit to a temporary expense, which is more than eompensated, by an increase of industry and wealth—by an augmentation of resources and independence—and by the circumstance of eventual cheapness, which has been noticcd in another place v. *V. Premiums. These are of a nature allied to bounties, though distinguishable from them in some important featores.
Bounties are applicable to the whole quantity of an article produced or manufactured, or exported, and involve a correspondent expense; premiums serve to reward some particular excellence or superiority, some extraordinary exertion or skill, and are dispensed only in a small number of cases.-But their effect is to stimulate general effort, contrived so as to be both honorary and lucrative, they address themselves to different passions, touching the chords as well of emulation as of interest. They are accordingly a very economical means of exciting the enterprize of a whole community. is here are various societies in different countries, whose object is the dispensation of premiums for the encouragement of agriculture, arts, manufactures, and commerce: and tho’ they are, for the most part voluntary associations, with comparatively slender funds, their utility has been immense. Much has been done by this mean in Great Britain; Scotland in partieular, owes materially to it a prodigious amelioration of condition. From a similar establishment in the United States, supplied and supported by the goverment of the union, vast benefits might reasonably be expected, VI. The exemption of the meterials of manufactures from duty. The policy of that exemption, as a general rule, particularly in reference to new establishments, is obvious. It can hardly ever be advisable to add the obstructions of fiscal burdens to the difficulties which naturally embarrass a new manufacture; and where it is matured and in condition to become an object of revenue, it is, generally speaking, better that the fabric, than the material, should be the subject of taxation. Ideas of proprotion between the quantum of the tax and the value of the article can be more easily adjusted in the former than in the latter case. An argument for exemptions of this kind in the United States, is to be derived from the practice, as far as their necessities have permitted, of those nations whom we are to meet as competitors in our own and in foreign markets. VII. Drawbacks of the duties which are imposed on the materials of manufactures. - It has already been observed, as a general rule, that duties on those meterials ought, with certain exceptions, to be forborne. Of these exceptions, three cases occur, which may serve as examples— one, where the material is itself an object of general or extensive consumption, and a fit and productive source of revenue;—another, where a manufacture of a simpler kind, the competition of which with a like domestic article is desired to be restrained, partakes of the nature of a raw material, from being capable, by a further process, to be converted into a manufacture of a different kind, the introduction or growth of which is desired to be eucouraged: a third, where the material itself is a production of the country, and in sufficient abundance to furnish a cheap and plentiful supply to the national manufacturers. Under the first description comes the article of molasses. It is not only a fair object of revenue, but being a sweet, it is just that the consumers of it should pay a duty as well as the consumers of sugar. Cottons and linens in their white state, fall under the second description: a duty upon such as are imported is proper to promote the domestic manufacture of similar articles in the same state—a drawback of that duty is proper to encourage the printing and staining at hone of those which are brought from abroad When the first of these manufactures has attained sufficient maturity in a country, to f.r. nish a full supply for the second, the utility of the drawback ceases: - -
The article of hemp either now does or may be expected soon to exemplify the third case, in the United States. Where duties on the materials of manufactures are not laid for the purpose of preventing a competition with some donestic production, the same reasons which recommend, as a general rule, the exemption of those materials from duties, would recomineid, as a like general rule, the allowance of drawbacks in favor of the manufacturer; accordingly, such drawbacks are funiliar in countries which systematically pursue the business of manufactures; which furnishes an argument for the observance of a similar policy in the United States; and the idea has been adopted by laws of the union, in the instances of salt and molasses. It is believed that it will be found advantageous to extend it to other rticles. - Viii. The encouragement of new inventions and discoveries, at home, and of the introduction into the United States of such as may have been made in other countries; particularly those wuich re},\te to machinery. - * It is custo:mary with manufacturing nations to prohibit, under severe penalties, the exportation of im..."ements and machines, they have either invented or improved. There are already objects for a similar regulation in the United States; and others may be expected to occur from time to time.—
The adoption of it seems to be dictated by the prin-l.
ciple of reciprocity. Greater liberality, in such respects, might better comport with the general spirit of the country; but a selfish and exclusive policy in other quarters, will not always permit the free indulgence of a spirit which would place us upon an equal footing. As far as prohibitions tend to prevent foreign competitors from deriving the benefit of the improvements made at home, they tend to increase the advantages of those by whom they may have been introduced--and operate as an encouragement to exertion. IX. Judicious regulations for the inspection of manufactured commodities. . This is not among the least important of the means, by which the prosperity of manufactures may be promoted. . It is indeed in many cases one of the most essential. Contributing to prevent frauds upon consumers at home, and exporters to foreign countries—to improve the quality and preserve the character of the national manufactures, it cannot fail to aid the expeditious and advantageous sale of them, and to serve as a guard against successful competition from other quarters. The reputation of the flour and lumber of some states, aud of the potash of others, has been established by an attention to this point. And the like good name might be pro: cured for those articles, wheresoever produced, by a judicious and uniform system of inspection throughout the ports of the United States. A like system might, also, be extended with advantage to other commodities o X. The facilitating of pecuniary remittances from place to place... . . . XI. The facilitating of the transportation of commodities. - - -- . The foregoing are the principal of the means by which the growth of manufactures is ord marily picnoted. It is, however, not merely necessary that uneasures of goveriment, which have a direct view to manufactures, should be calculated to assist and protect them; but that those which only collaterally, aftect them, in the general course of the admonistration, should be guarded from any pecular tendency to irjure them.
The possibility of a diminution of the revenue, may present itself, as an objection to the arrangements which have been submitted.
But there is no truth which maay be more firmly relied upon, than that the interests of the revenuc are promoted by whatever promotes an increase of national industry and wealth.
In proportion to the degree of these, is the capa-' city of every country to contribute to the public treasury; and when the capacity to pay is increased, or even is not decreased, the only consequence of measures winich diminish any particular resource is the change of the object. If by encouraging the manufacture of an article at hone, the revenue, which has been wont to accrue from its importation, should be lessened, an indemnification can easily be found, either out of the manufacture itself, or from some other object which may be deemed more coilVeh.cnt.
To fill up the chasm here, we annex the opinons of the ex-president, Mr. Jefferson, on the same subject, given in reply to a letter from Benjamin Austin, esq. of Boston. - [Then follows the letters of those distinguished persons, which it is not needful for us to re-publish, they having already been inserted in the WEEKLI Regist Ea, Wol. X page 24.]
American Glass. A few days since, the editor of the Wr Ekly Registen received the following very handsome and complimentary letter: Boston, June 9, 1819
Sin–Being a subscriber to your valuable RosisTen, I bawe with pleasure witnessed your zeal to promote the interests of the manufactories of our country; and, in behalf of the New ENGLAN n. Glass MAs up acrony come ANy, I have taken the liberty of forwarding to you, agreeably to the above bill of tading, a box containing one pair quart decanters and one pair quart pitchers, made at the Vew England' glass factory, which they beg your acceptance of.
It will no doubt be pleasing to you to learn that these works are extensive, and can rival any glass manufactory in Europe, for richness of cutting and quality of glass; and want but the aid of government to protect us from the English manufacturers. (who are particularly hostile to this factory) to ren-der it secure to the proprietors and an ornament te our country. Respectfully, yours,
1) F. MING JARVES. For the .V. E. Glass man. Co.
tro-By this letter, something neat was expected. nor were we disappointed; the articles have been compared with others of European manufacture, and certainly rival, if they are not superior to any that we have seen, either for richness of cutting or quality of glass. hey well deserve to be called superb—and if any one can desire to have better ware than this, his taste must be ear/uisite indeed,
For this elegant compliment, the editor of the Regison beg's leave to offer his best wishes for the .V. E. glass manofacturing-coinpany; hoping, that while their es'olishment secures them an adequate profit, it may long remain, as it now is, an ornament of our country and to Mr. Jarves, for the haudsome manner in wiłich he introduced the beautiful donatio , his pecular that:ks are justly due. .
Adverting to the close of Mr. Jarves' letter, we naturally began to think what the British govern