his nature and the community is benefited by the services of its respective members, in the manner in which each can serve it with most effect.

"VI. The affording of a more ample and various field for enterprise.

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Every new scene which is opened to the busy nature of man, to arouse and exert itself, is the addition of a new energy to the general stock of effort. The spirit of enterprise, useful and prolific as it is, must necessarily be contracted or expanded in proportion to the simplicity or variety of occupations and productions which are to be found in a society. It must be less in a nation of mere cultivators than in a nation of cultivators and merchants; less in a nation of cultivators and merchants than in a nation of cultivators, artificers, and merchants.

"VII. The creating, in some instances, a new, and securing in all, a more certain and steady demand for the surplus produce of the soil.

"This is among the most important of the circumstances which have been indicated. It is a principal means by which the establishment of manufactures contributes to the augmentation of the produce or revenue of a country, and has an immediate and direct relation to the prosperity of agriculture.

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"It is evident that the exertions of the husbandman will be vigorous or feeble, in proportion to the steadiness or fluctuation, adequateness or inadequateness, of the markets on which he must depend for the vent of the surplus which may be produced by his labor; and that such surplus, in the ordinary course of things, will be greater or less in the same proportion. For the purpose of this vent, a domestic market is greatly to be preferred to a foreign one; because it is, in tho nature of things, far more to be relied upon.. The foreign demand for the products of agricultural countries is rather casual and occasional than certain or constant. Injurious interruptions of the demand for some of the staple commodities of the United States are at times very inconveniently felt; and cases not unfrequently occur, in which markets are so confined and restricted as to render the demand very unequal to the supply. The differences of seasons in the countries which are the consumers, make immense differences in the produce of their own soils in different years; and, conse quently, in the degrees of their necessity for foreign supply. Plentiful harvests with them, especially if similar ones occur at the same time in the countries which are the furnishers, occasion, of course, a glut in the markets of the latter.

"Considering how fast and how much the progress of new settlements of the United States must increase the surplus produce of the soil, and weighing seriously the tendency of the system which prevails among most of the commercial nations of Europe; there appear strong reasons to regard the foreign demand for that surplus as too uncertain a reliance, and to desire a substitute for it in an extensive domestic market. To secure such a market, there is no other expedient than to promote manufacturing establishments. Manufacturers, who constitute the most numerous class, after the cultivators of land, are, for that reason, the principal consumers of the surplus of their labors.

"It merits particular observation, that the multiplication of manufactories not only furnishes a market for those articles which have been accustomed to be produced in abundance in a country, but it likewise creates a demand for such as were either unknown or produced in inconsiderable quantities. The bowels as well as the surface of the earth, are ransacked for articles which were before neglected. Animals, plants, and minerals, acquire a utility and a value which were before unexplored.

"The foregoing considerations seem sufficient to establish the propositions, that it is the interest of nations to diversify the industrious pursuits of the individuals who compose them, and that the establishment of manufactures is calculated to increase the general stock of useful and productive labor."

The Secretary next notices what may be said in reference to the particular situation of the United States, against the conclusions which appear to result from what has been already offered.

"There are those who admit that a country which possesses large tracts of vacant and fertile lands, and is secluded from foreign commerce, may be benefited by diverting a part of its population from tillage to manufactures; but who deny that the same is true of a country which, having such vacant and fertile lands, has at the same time ample opportunity of procuring the manufactures which it needs, on good terms, from abroad. And though it should be true, that, in settled countries, diversified industry increases the productive pow ers of labor, and augments revenue and capital; yet it does not appear to be of so solid and permanent advantage to an uncultivated and unpeopled country, as to convert its wastes into cultivated and inhabited districts. If the revenue, in the mean time, should be less, the capital in the event must be greater."

The Secretary's answer to these observations, we give in a condensed form, as follows:

If perfect liberty to industry and commerce were the pretailing system of nations, there would be great force in the arguments which dissuade a country in the situation of the United States from the pursuit of manufactures. If one nation could supply manufactured articles on better terms than another, that other might be indemnified by its superior capacity to furnish the produce of the soil; and a free exchange might be mutually beneficial. But the system mentioned does not characterize the general policy of nations. Consequently the United States are to a certain extent precluded from foreign commerce. Countries with which we have the most extensive intercourse, throw serious obstructions in the way of the principal staples of the United States.

In such a position of things, we can not exchange with Europe on equal terms; and the want of reciprocity would compel us to confine our views to agriculture, and to refrain from manufactures. A constant and increasing necessity on our part for the commodities of Europe, and only a partial and occasional demand for our own in return, would expose us to a state of impoverishment, compared with the opulence to which our political and natural advantages authorize us to aspire. Whether other nations do not, by their policy, lose more than they gain, they must judge for themselves: it is for the United States to consider how they can render themselves least dependent on the combinations of foreign policy. If Europe will not take from us the products of our soil upon favorable terms, the natural remedy is to contract as fast as possible our wants of hers.

The conversion of our uncultivated lands is a point of great importance. But though the encouragement of manufactures should somewhat retard this object, the disadvantage would be more than counterbalanced by such encouragement. The interests even of agriculture may be advanced more by having the occupied lands under good cultivation, than by having a greater quantity occupied under inferior cultivation. Manufactories tend to promote a more steady and vigorous cultivation of the lands occupied, and serve to increase both the capital value and the income of the lands, even though they should abridge the number of acres under tillage.

But it is by no means certain that new settlements would be retarded by the extension of manufactures. So strong is the natural desire of being an independent proprietor of land,

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and so easily is it acquired in this country, that but a small proportion of those who have this desire would be diverted from it towards manufactures. And it is probable, as already intimated, that, of the foreigners drawn hither by manufac turing views, who would afterwards abandon them for agricultural, would be equal to those of our own citizens who might have exchanged agricultural for manufacturing pursuits.

Another objection to a particular encouragement of manufactures in the United States, is, that industry, if left to itself, will naturally find its way to the most profitable employment; and hence, that manufactures, without the aid of Government, will grow up as soon and as fast as the natural state of things and the interest of the community may require.

To this it is replied, in substance, that the fear of failure in untried enterprises, the difficulties incident to first attempts to compete with those who have attained to perfection in the business to be attempted, and the bounties, premiums, and other encouragements with which foreign nations aid the exertions of their own citizens, discourage the investment of capital in manufactures. Men change their occupations with reluctance and hesitation; and these changes would be likely to be too tardy for the interest either of individuals or of the community, without the aid of Government.

The three circumstances, namely, scarcity of hands, dearness of labor, and want of capital, which are urged as objec tions to the pursuit of manufactures, are next considered.

The two first of these circumstances, the Secretary admits, operate to some extent against the manufacturing enterprise in the United States; but they are not sufficient to prevent its advantageous prosecution. Some districts are already pretty fully peopled; and, having fewer attractions to agriculture than some other parts of the Union, they exhibit a stronger tendency towards other kinds of industry. But the effect of a scarcity of hands is materially diminished by the employment of women and children, the use of improved machinery, and the attraction of foreign emigrants. The objec tion to the success of manufactures, deduced from the scarcity of hands, is alike applicable to trade and navigation, and yet these do not appear to suffer any impediment from that cause. The dearness of labor has relation, principally, to two cir cumstances; the scarcity of hands, and the greatness of profits.

The former of these, the scarcity of hands which has just

been discussed, is farther considered. The effect of the disparity, in this respect, between Europe and this country, is diminished in proportion to the use which can be made of machinery. Machines can be prepared here on nearly as favorable terms as in Europe. So far as they depend on water, superiority of advantages may be claimed, from the variety and cheapness of situations adapted to mill seats with which many parts of the United States abound.

The dearness of labor, so far as it is a consequence of the greatness of profits, in any branch of business, is no obstacle to success. Undertakers of manufactures can at this time afford to pay higher wages than are paid in Europe. As to the cost of materials and of grounds and buildings; the commissions of agents to purchase the fabrics where they are made; the expense of transportation to the United States, including insurance and other incidental charges; the taxes or duties, if any, and fees of office which are paid on their exportation; the taxes or duties and fees of office paid on their importation-all these affect the price of the foreign fabric, and go far to counterbalance the advantage of the greater cheapness of labor.

Lastly, the want of capital. This is the most indefinite of the objections urged against the prosecution of manufactures. in the United States. The real extent of the moneyed capital of a country, and the proportion which it bears to the objects which invite the employment of capital, are not easily deter mined. Why may not the some objection-the want of capital-be made to external commerce as to manufactures? It is believed there will be found, in one way or another, a sufficient fund for the successful prosecution of any species of industry which is likely to prove truly beneficial.

The introduction of banks has a powerful tendency to ex tend the active capital of a country. Their utility is multiplying them in the United States. If administered with prudence, they will add new energies to all pecuniary operations.

The aid of foreign capital, too, may be safely calculated upon. This aid has long been experienced in our external commerce, and has begun to be felt in various modes. In a few instances, it has already extended even to our manufactures. Some parts of Europe have more capital than can be profitably employed at home; and large loans are made to foreign States. Various objects in this country strongly invite the transfer of foreign capital.

Some persons may lock with a jealous eye on the introduc