Report on the Subject of the country.

”
“To endeavor by the extraordinary patronage of
Manufactures Government, to accelerate the growth of manufactures,
is in fact, to endeavor, by force and art, to transfer
By Alexander Hamilton the natural current of industry, from a more to a less
December 5, 1791 beneficial channel. Whatever has such a tendency must
necessarily be unwise. Indeed it can hardly ever be
To the Speaker of the House of Representatives: wise in a government, to attempt to give a direction to
The Secretary of the Treasury in obedience to the order the industry of its citizens. This under the quicksighted
of ye House of Representatives, of the 15th day of January guidance of private interest, will, if left to itself, infallibly
1790, has applied his attention, at as early a period as his find its own way to the most profitable employment: and
other duties would permit, to the subject of Manufactures; ‘tis by such employment, that the public prosperity will
and particularly to the means of promoting such as will be most effectually promoted. To leave industry to itself,
tend to render the United States, independent on foreign therefore, is, in almost every case, the soundest as well as
nations, for military and other essential supplies. And he the simplest policy.”
there (upon) respectfully submits the following Report. “This policy is not only recommended to the United
The expediency of encouraging manufactures in the States, by considerations which affect all nations, it is,
United States, which was not long since deemed very in a manner, dictated to them by the imperious force
questionable, appears at this time to be pretty generally of a very peculiar situation. The smallness of their
admitted. The embarrassments, which have obstructed population compared with their territory—the constant
the progress of our external trade, have led to serious allurements to emigration from the settled to the unsettled
reflections on the necessity of enlarging the sphere of our parts of the country—the facility, with which the less
domestic commerce: the restrictive regulations, which in independent condition of an artisan can be exchanged
foreign markets abrige the vent of the increasing surplus for the more independent condition of a farmer, these
of our Agricultural produce, serve to beget an earnest and similar causes conspire to produce, and for a length
desire, that a more extensive demand for that surplus may of time must continue to occasion, a scarcity of hands
be created at home: And the complete success, which for manufacturing occupation, and dearness of labor
has rewarded manufacturing enterprise, in some valuable generally. To these disadvantages for the prosecution
branches, conspiring with the promising symptoms, which of manufactures, a deficiency of pecuniary capital being
attend some less mature essays, in others, justify a hope, added, the prospect of a successful competition with the
that the obstacles to the growth of this species of industry manufactures of Europe must be regarded as little less
are less formidable than they were apprehended to be; than desperate. Extensive manufactures can only be the
and that it is not difficult to find, in its further extension; offspring of a redundant, at least of a full population. Till
a full indemnification for any external disadvantages, the latter shall characterise the situation of this country,
which are or may be experienced, as well as an accession ‘tis vain to hope for the former.”
of resources, favourable to national independence and “If contrary to the natural course of things, an
safety. unseasonable and premature spring can be given to
There still are, nevertheless, respectable patrons certain fabrics, by heavy duties, prohibitions, bounties, or
of opinions, unfriendly to the encouragement of by other forced expedients; this will only be to sacrifice
manufactures. The following are, substantially, the the interests of the community to those of particular
arguments by which these opinions are defended. classes. Besides the misdirection of labour, a virtual
monopoly will be given to the persons employed on
“In every country (say those who entertain them)
such fabrics; and an enhancement of price, the inevitable
Agriculture is the most beneficial and productive object
consequence of every monopoly, must be defrayed at the
of human industry. This position, generally, if not
expence of the other parts of society. It is far preferable,
universally true, applies with peculiar emphasis to the
that those persons should be engaged in the cultivation of
United States, on account of their immense tracts of
the earth, and that we should procure, in exchange for its
fertile territory, uninhabited and unimproved. Nothing
productions, the commodities, with which foreigners are
can so afford so advantageous an employment for capital
able to supply us in greater perfection, and upon better
and labour, as the conversion of this extensive wilderness
terms.”
into cultivated farms. Nothing equally with this, can
contribute to the population, strength and real riches of This mode of reasoning is founded upon facts and
principles, which have certainly respectable pretensions. profit on the stock or capital of the Farmer, a nett surplus,
If it had governed the conduct of nations, more generally or rent for the landlord or proprietor of the soil. But the
than it has done, there is room to suppose, that it might labor of Artificers does nothing more, than replace the
have carried them faster to prosperity and greatness, than Stock which employs them (or which furnishes materials
they have attained, by the pursuit of maxims too widely tools and wages) and yield the ordinary profit upon that
opposite. Most general theories, however, admit of Stock. It yields nothing equivalent to the rent of land.
numerous exceptions, and there are few, if any, of the Neither does it add any thing to the total value of the
political kind, which do not blend a considerable portion whole annual produce of the land and labour of the
of error, with the truths they inculcate. country. The additional value given to those parts of the
produce of land, which are wrought into manufactures, is
In order to an accurate judgement how far that which
counterbalanced by the value of those other parts of that
has been just stated ought to be deemed liable to a similar
produce, which are consumed by the manufacturers. It
imputation, it is necessary to advert carefully to the
can therefore only be by saving, or parsimony not by the
considerations, which plead in favour of manufactures,
positive productiveness of their labour, that the classes of
and which appear to recommend the special and positive
Artificers can in any degree augment the revenue of the
encouragement of them; in certain cases, and under
Society.
certain reasonable limitations.
To this it has been answered—
It ought readily to be conceded, that the cultivation
of the earth—as the primary and most certain source of I. “That inasmuch as it is acknowleged, that
national supply—as the immediate and chief source of manufacturing labour reproduces a value equal to that
subsistence to man—as the principal source of those which is expended or consumed in carrying it on, and
materials which constitute the nutriment of other kinds of continues in existence the original Stock or capital
labor—as including a state most favorable to the freedom employed—it ought on that account alone, to escape
and independence of the human mind—one, perhaps, being considered as wholly unproductive: That though
most conducive to the multiplication of the human it should be admitted, as alleged, that the consumption
species—has intrinsically a strong claim to preeminence of the produce of the soil, by the classes of Artificers or
over every other kind of industry. Manufacturers, is exactly equal to the value added by
their labour to the materials upon which it is exerted; yet
But, that it has a title to any thing like an exclusive
it would not thence follow, that it added nothing to the
predilection, in any country, ought to be admitted with
Revenue of the Society, or to the aggregate value of the
great caution. That it is even more productive than every
annual produce of its land and labour. If the consumption
other branch of Industry requires more evidence, than has
for any given period amounted to a given sum and the
yet been given in support of the position. That its real
increased value of the produce manufactured, in the same
interests, precious and important as without the help of
period, to a like sum, the total amount of the consumption
exaggeration, they truly are, will be advanced, rather than
and production during that period, would be equal to
injured by the due encouragement of manufactures, may,
the two sums, and consequently double the value of
it is believed, be satisfactorily demonstrated. And it is
the agricultural produce consumed. And though the
also believed that the expediency of such encouragement
increment of value produced by the classes of Artificers
in a general view may be shewn to be recommended
should at no time exceed the value of the produce of the
by the most cogent and persuasive motives of national
land consumed by them, yet there would be at every
policy.
moment, in consequence of their labour, a greater value
It has been maintained, that Agriculture is, not only, of goods in the market than would exist independent of
the most productive, but the only productive species of it.”
industry. The reality of this suggestion in either aspect,
II. “That the position, that Artificers can augment
has, however, not been verified by any accurate detail of
the revenue of a Society, only by parsimony, is true in
facts and calculations; and the general arguments, which
no other sense, than in one, which is equally applicable
are adduced to prove it, are rather subtil and paradoxical,
to Husbandmen or Cultivators. It may be alike affirmed
than solid or convincing.
of all these classes, that the fund acquired by their labor
Those which maintain its exclusive productiveness are and destined for their support is not, in an ordinary way,
to this effect. more than equal to it. And hence it will follow, that
Labour, bestowed upon the cultivation of land produces augmentations of the wealth or capital of the community
enough, not only to replace all the necessary expences (except in the instances of some extraordinary dexterity
incurred in the business, and to maintain the persons who or skill) can only proceed, with respect to any of them,
are employed in it, but to afford together with the ordinary from the savings of the more thrifty and parsimonious.”
 III. “That the annual produce of the land and labour of his land, or some other favorable circumstance, may
of a country can only be encreased, in two ways—by frequently obtain a livelihood, even with a considerable
some improvement in the productive powers of the degree of carelessness in the mode of cultivation; but the
useful labour, which actually exists within it, or by artisan can with difficulty effect the same object, without
some increase in the quantity of such labour: That with exerting himself pretty equally with all those, who are
regard to the first, the labour of Artificers being capable engaged in the same pursuit. And if it may likewise be
of greater subdivision and simplicity of operation, than assumed as a fact, that manufactures open a wider field
that of Cultivators, it is susceptible, in a proportionably to exertions of ingenuity than agriculture, it would not
greater degree, of improvement in its productive powers, be a strained conjecture, that the labour employed in the
whether to be derived from an accession of Skill, or former, being at once more constant, more uniform and
from the application of ingenious machinery; in which more ingenious, than that which is employed in the latter,
particular, therefore, the labour employed in the culture will be found at the same time more productive.
of land can pretend to no advantage over that engaged in
But it is not meant to lay stress on observations of
manufactures: That with regard to an augmentation of
this nature they ought only to serve as a counterbalance
the quantity of useful labour, this, excluding adventitious
to those of a similar complexion. Circumstances so
circumstances, must depend essentially upon an increase
vague and general, as well as so abstract, can afford little
of capital, which again must depend upon the savings
instruction in a matter of this kind.
made out of the revenues of those, who furnish or
manage that, which is at any time employed, whether in Another, and that which seems to be the principal
Agriculture, or in Manufactures, or in any other way.” argument offered for the superior productiveness of
Agricultural labour, turns upon the allegation, that labour
But while the exclusive productiveness of Agricultural
employed in manufactures yields nothing equivalent to
labour has been thus denied and refuted, the superiority
the rent of land; or to that nett surplus, as it is called,
of its productiveness has been conceded without
which accrues to the proprietor of the soil.
hesitation. As this concession involves a point of
considerable magnitude, in relation to maxims of public But this distinction, important as it has been deemed,
administration, the grounds on which it rests are worthy appears rather verbal than substantial.
of a distinct and particular examination. It is easily discernible, that what in the first instance
One of the arguments made use of, in support of the is divided into two parts under the denominations of
idea may be pronounced both quaint and superficial. It the ordinary profit of the Stock of the farmer and rent
amounts to this—That in the productions of the soil, to the landlord, is in the second instance united under
nature co-operates with man; and that the effect of their the general appellation of the ordinary profit on the
joint labour must be greater than that of the labour of man Stock of the Undertaker; and that this formal or verbal
alone. distribution constitutes the whole difference in the two
cases. It seems to have been overlooked, that the land
This however, is far from being a necessary inference.
is itself a Stock or capital, advanced or lent by its owner
It is very conceivable, that the labor of man alone laid
to the occupier or tenant, and that the rent he receives is
out upon a work, requiring great skill and art to bring
only the ordinary profit of a certain Stock in land, not
it to perfection, may be more productive, in value, than
managed by the proprietor himself, but by another to
the labour of nature and man combined, when directed
whom he lends or lets it, and who on his part advances a
towards more simple operations and objects: And
second capital to stock and improve the land, upon which
when it is recollected to what an extent the Agency of
he also receives the usual profit. The rent of the landlord
nature, in the application of the mechanical powers, is
and the profit of the farmer are therefore nothing more
made auxiliary to the prosecution of manufactures,
than the ordinary profits of two capitals belonging to two
the suggestion, which has been noticed, loses even the
different persons, and united in the cultivation of a farm:
appearance of plausibility.
As in the other case, the surplus which arises upon any
It might also be observed, with a contrary view, that manufactory, after replacing the expences of carrying it
the labour employed in Agriculture is in a great measure on, answers to the profits of one or more capitals engaged
periodical and occasional, depending on seasons, liable in the prosecution of such manufactory. It is said one or
to various and long intermissions; while that occupied more capitals; because in fact, the same thing which is
in many manufactures is constant and regular, extending contemplated, in the case of the farm, sometimes happens
through the year, embracing in some instances night as in that of a manufactory. There is one, who furnishes a
well as day. It is also probable, that there are among the part of the capital, or lends a part of the money, by which
cultivators of land more examples of remissness, than it is carried on, and another, who carries it on, with the
among artificers. The farmer, from the peculiar fertility addition of his own capital. Out of the surplus, which
remains, after defraying expences, an interest is paid to doubt. It is far less difficult to infer generally, that the nett
the money lender for the portion of the capital furnished produce of Capital engaged in manufacturing enterprises
by him which exactly agrees with the rent paid to the is greater than that of Capital engaged in Agriculture.
landlord; and the residue of that surplus constitutes the
In stating these results, the purchase and improvement of
profit of the undertaker or manufacturer, and agrees with
lands, under previous cultivation are alone contemplated.
what is denominated the ordinary profits on the Stock of
The comparison is more in favour of Agriculture, when
the farmer. Both together make the ordinary profits of
it is made with reference to the settlement of new and
two capitals (employed in a manufactory; as in the other
waste lands; but an argument drawn from so temporary
case the rent of the landlord and the revenue of the farmer
a circumstance could have no weight in determining
compose the ordinary profits of two Capitals) employed
the general question concerning the permanent relative
in the cultivation of a farm.
productiveness of the two species of industry. How far
The rent therefore accruing to the proprietor of it ought to influence the policy of the United States, on
the land, far from being a criterion of exclusive the score of particular situation, will be adverted to in
productiveness, as has been argued, is no criterion even another place.
of superior productiveness. The question must still be,
The foregoing suggestions are not designed to
whether the surplus, after defraying expences, of a given
inculcate an opinion that manufacturing industry is more
capital, employed in the purchase and improvement
productive than that of Agriculture. They are intended
of a piece of land, is greater or less, than that of a like
rather to shew that the reverse of this proposition is not
capital employed in the prosecution of a manufactory: or
ascertained; that the general arguments which are brought
whether the whole value produced from a given capital
to establish it are not satisfactory; and consequently that
and a given quantity of labour, employed in one way, be
a supposition of the superior productiveness of Tillage
greater or less, than the whole value produced from an
ought to be no obstacle to listening to any substantial
equal capital and an equal quantity of labour employed
inducements to the encouragement of manufactures,
in the other way: or rather, perhaps whether the business
which may be otherwise perceived to exist, through an
of Agriculture or that of Manufactures will yield the
apprehension, that they may have a tendency to divert
greatest product, according to a compound ratio of the
labour from a more to a less profitable employment.
quantity of the Capital and the quantity of labour, which
are employed in the one or in the other. It is extremely probable, that on a full and accurate
devellopment of the matter, on the ground of fact and
The solution of either of these questions is not easy;
calculation, it would be discovered that there is no
it involves numerous and complicated details, depending
material difference between the aggregate productiveness
on an accurate knowledge of the objects to be compared.
of the one, and of the other kind of industry; and that the
It is not known that the comparison has ever yet been
propriety of the encouragements, which may in any case
made upon sufficient data properly ascertained and
be proposed to be given to either ought to be determined
analised. To be able to make it on the present occasion
upon considerations irrelative to any comparison of that
with satisfactory precision would demand more previous
nature.
enquiry and investigation, than there has been hitherto
either leisure or opportunity to accomplish. II. But without contending for the superior
productiveness of Manufacturing Industry, it may
Some essays however have been made towards acquiring
conduce to a better judgment of the policy, which ought to
the requisite information; which have rather served to
be pursued respecting its encouragement, to contemplate
throw doubt upon, than to confirm the Hypothesis, under
the subject, under some additional aspects, tending not
examination: But it ought to be acknowledged, that they
only to confirm the idea, that this kind of industry has
have been too little diversified, and are too imperfect,
been improperly represented as unproductive in itself;
to authorise a definitive conclusion either way; leading
but (to) evince in addition that the establishment and
rather to probable conjecture than to certain deduction.
diffusion of manufactures have the effect of rendering the
They render it probable, that there are various branches
total mass of useful and productive labor in a community,
of manufactures, in which a given Capital will yield a
greater than it would otherwise be. In prosecuting this
greater total product, and a considerably greater nett
discussion, it may be necessary briefly to resume and
product, than an equal capital invested in the purchase
review some of the topics, which have been already
and improvement of lands; and that there are also some
touched.
branches, in which both the gross and nett produce will
exceed that of Agricultural industry; according to a To affirm, that the labour of the Manufacturer is
compound ratio of capital and labour: But it is on this unproductive, because he consumes as much of the
last point, that there appears to be the greatest room for produce of land, as he adds value to the raw materials
which he manufactures, is not better founded, than it farmer and artificer; and hence, it results, that the labour
would be to affirm, that the labour of the farmer, which of the artificer is as possitively productive as that of the
furnishes materials to the manufacturer, is unproductive, farmer, and, as positively, augments the revenue of the
because he consumes an equal value of manufactured Society.
articles. Each furnishes a certain portion of the produce
The labour of the Artificer replaces to the farmer that
of his labor to the other, and each destroys a correspondent
portion of his labour, with which he provides the materials
portion of the produce of the labour of the other. In the
of exchange with the Artificer, and which he would
mean time, the maintenance of two Citizens, instead of
otherwise have been compelled to apply to manufactures:
one, is going on; the state has two members instead of
and while the Artificer thus enables the farmer to enlarge
one; and they together consume twice the value of what
his stock of Agricultural industry, a portion of which he
is produced from the land.
purchases for his own use, he also supplies himself with
If instead of a farmer and artificer, there were a farmer the manufactured articles of which he stands in need.
only, he would be under the necessity of devoting a part
He does still more—Besides this equivalent which
of his labour to the fabrication of cloathing and other
he gives for the portion of Agricultural labour consumed
articles, which he would procure of the artificer, in the
by him, and this supply of manufactured commodities
case of there being such a person; and of course he would
for his own consumption—he furnishes still a surplus,
be able to devote less labor to the cultivation of his farm;
which compensates for the use of the Capital advanced
and would draw from it a proporitionably less product.
either by himself or some other person, for carrying on
The whole quantity of production, in this state of things,
the business. This is the ordinary profit of the stock
in provisions, raw materials and manufactures, would
employed in the manufactory, and is, in every sense, as
certainly not exceed in value the amount of what would
effective an addition to the income of the Society, as the
be produced in provisions and raw materials only, if there
rent of land.
were an artificer as well as a farmer.
The produce of the labour of the Artificer consequently,
Again—if there were both an artificer and a farmer,
may be regarded as composed of three parts; one by
the latter would be left at liberty to pursue exclusively the
which the provisions for his subsistence and the materials
cultivation of his farm. A greater quantity of provisions
for his work are purchased of the farmer, one by which
and raw materials would · of course be produced—equal at
he supplies himself with manufactured necessaries, and a
least—as has been already observed, to the whole amount
third which constitutes the profit on the Stock employed.
of the provisions, raw materials and manufactures, which
The two last portions seem to have been overlooked in
would exist on a contrary supposition. The artificer, at
the system, which represents manufacturing industry as
the same time would be going on in the production of
barren and unproductive.
manufactured commodities; to an amount sufficient not
only to repay the farmer, in those commodities, for the In the course of the preceding illustrations, the products
provisions and materials which were procured from of equal quantities of the labour of the farmer and artificer
him, but to furnish the Artificer himself with a supply of have been treated as if equal to each other. But this is not
similar commodities for his own use. Thus then, there to be understood as intending to assert any such precise
would be two quantities or values in existence, instead of equality. It is merely a manner of expression adopted for
one; and the revenue and consumption would be double the sake of simplicity and perspicuity. Whether the value
in one case, what it would be in the other. of the produce of the labour of the farmer be somewhat
more or less, than that of the artificer, is not material
If in place of both these suppositions, there were
to the main scope of the argument, which hitherto has
supposed to be two farmers, and no artificer, each of
only aimed at shewing, that the one, as well as the other,
whom applied a part of his labour to the culture of land,
occasions a possitive augmentation of the total produce
and another part to the fabrication of Manufactures—in
and revenue of the Society.
this case, the portion of the labour of both bestowed upon
land would produce the same quantity of provisions and It is now proper to proceed a step further, and to
raw materials only, as would be produced by the intire enumerate the principal circumstances, from which it
sum of the labour of one applied in the same manner, may be inferred—That manufacturing establishments
and the portion of the labour of both bestowed upon not only occasion a possitive augmentation of the
manufactures, would produce the same quantity of Produce and Revenue of the Society, but that they
manufactures only, as would be produced by the intire contribute essentially to rendering them greater than they
sum of the labour of one applied in the same manner. could possibly be, without such establishments. These
Hence the produce of the labour of the two farmers circumstances are—
would not be greater than the produce of the labour of the 1. The division of Labour.
2. An extension of the use of Machinery. operations. Besides this, the fabrication of Machines,
in numerous instances, becoming itself a distinct trade,
3. Additional employment to classes of the community
the Artist who follows it, has all the advantages which
not-ordinarily engaged in the business.
have been enumerated, for improvement in his particular
4. The promoting of emigration from foreign Countries. art; and in both ways the invention and application of
5. The furnishing greater scope for the diversity of talents machinery are extended.
and dispositions which discriminate men from each And from these causes united, the mere separation of
other. the occupation of the cultivator, from that of the Artificer,
6. The affording a more ample and various field for has the effect of augmenting the productive powers of
enterprise. labour, and with them, the total mass of the produce or
revenue of a Country. In this single view of the subject,
7. The creating in some instances a new, and securing in therefore, the utility of Artificers or Manufacturers,
all, a more certain and steady demand for the surplus towards promoting an increase of productive industry, is
produce of the soil. apparent.
Each of these circumstances has a considerable influence
upon the total mass of industrious effort in a community.
Together, they add to it a degree of energy and effect, II. As to an extension of the use of Machinery a point
which are not easily conceived. Some comments upon which though partly anticipated requires to be placed in
each of them, in the order in which they have been stated, one or two additional lights.
may serve to explain their importance. The employment of Machinery forms an item of great
I. As to the Division of Labour. importance in the general mass of national industry. ‘Tis
an artificial force brought in aid of the natural force of
It has justly been observed, that there is scarcely any man; and, to all the purposes of labour, is an increase
thing of greater moment in the economy of a nation, of hands; an accession of strength, unincumbered too
than the proper division of labour. The seperation of by the expence of maintaining the laborer. May it not
occupations causes each to be carried to a much greater therefore be fairly inferred, that those occupations, which
perfection, than it could possible acquire, if they were give greatest scope to the use of this auxiliary, contribute
blended. This arises principally from three circumstances. most to the general Stock of industrious effort, and, in
First. The greater skill and dexterity naturally resulting consequence, to the general product of industry?
from a constant and undivided application to a single It shall be taken for granted, and the truth of the
object. It is evident, that these properties must increase, in position referred to observation, that manufacturing
proportion to the separation and simplification of objects pursuits are susceptible in a greater degree of the
and the steadiness of the attention devoted to each; and application of machinery, than those of Agriculture. If so
must be less, in proportion to the complication of objects, all the difference is lost to a community, which, instead
and the number among which the attention is distracted. of manufacturing for itself, procures the fabrics requisite
Second. The economy of time—by avoiding the loss to its supply from other Countries. The substitution of
of it, incident to a frequent transition from one operation foreign for domestic manufactures is a transfer to foreign
to another of a different nature. This depends on various nations of the advantages accruing from the employment
circumstances—the transition itself—the orderly of Machinery, in the modes in which it is capable of being
disposition of the impliments, machines and materials employed; with most utility and to the greatest extent.
employed in the operation to be relinquished—the The Cotton Mill invented in England, within
preparatory steps to the commencement of a new one— the last twenty years, is a signal illustration of the
the interruption of the impulse, which the mind of the general proposition, which has been just advanced. In
workman acquires, from being engaged in a particular consequence of it, all the different processes for spining
operation—the distractions hesitations and reluctances, Cotton are performed by means of Machines, which are
which attend the passage from one kind of business to put in motion by water, and attended chiefly by women
another. and Children; (and by a smaller) number of (persons, in
Third. An extension of the use of Machinery. A man the whole, than are) requisite in the ordinary mode of
occupied on a single object will have it more in his power, spinning. And it is an advantage of great moment that the
and will be more naturally led to exert his imagination in operations of this mill continue with convenience, during
devising methods to facilitate and abrige labour, than if he the night, as well as through the day. The prodigious
were perplexed by a variety of independent and dissimilar affect of such a Machine is easily conceived. To this
invention is to be attributed essentially the immense
progress, which has been so suddenly made in Great and restraints, which they endure in the old world, of
Britain in the various fabrics of Cotton. greater personal independence and consequence, under
the operation of a more equal government, and of what
III. As to the additional employment of classes of
is far more precious than mere religious toleration—a
the community, not ordinarily engaged in the particular
perfect equality of religious privileges; would probably
business.
flock from Europe to the United States to pursue their own
This is not among the least valuable of the means, by trades or professions, if they were once made sensible of
which manufacturing institutions contribute to augment the advantages they would enjoy, and were inspired with
the general stock of industry and production. In places an assurance of encouragement and employment, will,
where those institutions prevail, besides the persons with difficulty, be induced to transplant themselves, with
regularly engaged in them, they afford occasional and a view to becoming Cultivators of Land.
extra employment to industrious individuals and families,
If it be true then, that it is the interest of the United
who are willing to devote the leisure resulting from the
States to open every possible (avenue to) emigration
intermissions of their ordinary pursuits to collateral
from abroad, it affords a weighty argument for the
labours, as a resource of multiplying their acquisitions or
encouragement of manufactures; which for the reasons
(their) enjoyments. The husbandman himself experiences
just assigned, will have the strongest tendency to multiply
a new source of profit and support from the encreased
the inducements to it.
industry of his wife and daughters; invited and stimulated
by the demands of the neighboring manufactories. Here is perceived an important resource, not only
for extending the population, and with it the useful and
Besides this advantage of occasional employment to
productive labour of the country, but likewise for the
classes having different occupations, there is another of
prosecution of manufactures, without deducting from
a nature allied to it (and) of a similar tendency. This is—
the number of hands, which might otherwise be drawn to
the employment of persons who would otherwise be idle
tillage; and even for the indemnification of Agriculture for
(and in many cases a burthen on the community), either
such as might happen to be diverted from it. Many, whom
from the byass of temper, habit, infirmity of body, or
Manufacturing views would induce to emigrate, would
some other cause, indisposing, or disqualifying them for
afterwards yield to the temptations, which the particular
the toils of the Country. It is worthy of particular remark,
situation of this Country holds out to Agricultural
that, in general, women and Children are rendered more
pursuits. And while Agriculture would in other respects
useful and the latter more early useful by manufacturing
derive many signal and unmingled advantages, from the
establishments, than they would otherwise be. Of the
growth of manufactures, it is a problem whether it would
number of persons employed in the Cotton Manufactories
gain or lose, as to the article of the number of persons
of Great Britain, it is computed that 4/7 nearly are
employed in carrying it on.
women and children; of whom the greatest proportion are
children and many of them of a very tender age. V. As to the furnishing greater scope for the diversity
of talents and dispositions, which discriminate men from
And thus it appears to be one of the attributes of
each other.
manufactures, and one of no small consequence, to give
occasion to the exertion of a greater quantity of Industry, This is a much more powerful mean of augmenting the
even by the same number of persons, where they happen fund of national Industry than may at first sight appear.
to prevail, than would exist, if there were no such It is a just observation, that minds of the strongest and
establishments. most active powers for their proper objects fall below
mediocrity and labour without effect, if confined to
IV. As to the promoting of emigration from foreign
uncongenial pursuits. And it is thence to be inferred, that
Countries.
the results of human exertion may be immensely increased
Men reluctantly quit one course of occupation and by diversifying its objects. When all the different kinds of
livelihood for another, unless invited to it by very industry obtain in a community, each individual can find
apparent and proximate advantages. Many, who would his proper element, and can call into activity the whole
go from one country to another, if they had a prospect of vigour of his nature. And the community is benefitted by
continuing with more benefit the callings, to which they the services of its respective members, in the manner, in
have been educated, will often not be tempted to change which each can serve it with most effect.
their situation, by the hope of doing better, in some other
If there be anything in a remark often to be met with—
way. Manufacturers, who listening to the powerful
namely that there is, in the genius of the people of this
invitations of a better price for their fabrics, or their labour,
country, a peculiar aptitude for mechanic improvements,
of greater cheapness of provisions and raw materials, of
it would operate as a forcible reason for giving
an exemption from the chief part of the taxes burthens
opportunities to the exercise of that species of talent, by always to be recollected, that nations, who have neither
the propagation of manufactures. mines nor manufactures, can only obtain the manufactured
articles, of which they stand in need, by an exchange of
VI. As to the affording a more ample and various field
the products of their soils; and that, if those who can best
for enterprise.
furnish them with such articles are unwilling to give a
This also is of greater consequence in the general scale due course to this exchange, they must of necessity make
of national exertion, than might perhaps on a superficial every possible effort to manufacture for themselves,
view be supposed, and has effects not altogether the effect of which is that the manufacturing nations
dissimilar from those of the circumstance last noticed. abrige the natural advantages of their situation, through
To cherish and stimulate the activity of the human mind, an unwillingness to permit the Agricultural countries to
by multiplying the objects of enterprise, is not among the enjoy the advantages of theirs, and sacrifice the interests
least considerable of the expedients, by which the wealth of a mutually beneficial intercourse to the vain project of
of a nation may be promoted. Even things in themselves selling every thing and buying nothing.
not positively advantageous, sometimes become so, by
But it is also a consequence of the policy, which has
their tendency to provoke exertion. Every new scene,
been noted, that the foreign demand for the products of
which is opened to the busy nature of man to rouse and
Agricultural Countries, is, in a great degree, rather casual
exert itself, is the addition of a new energy to the general
and occasional, than certain or constant. To what extent
stock of effort.
injurious interruptions of the demand for some of the
The spirit of enterprise, useful and prolific as it is, staple commodities of the United States, may have been
must necessarily be contracted or expanded in proportion experienced, from that cause, must be referred to the
to the simplicity or variety of the occupations and judgment of those who are engaged in carrying on the
productions, which are to be found in a Society. It must commerce of the country; but it may be safely assumed,
be less in a nation of mere cultivators, than in a nation of that such interruptions are at times very inconveniently
cultivators and merchants; less in a nation of cultivators felt, and that cases not unfrequently occur, in which
and merchants, than in a nation of cultivators, artificers markets are so confined and restricted, as to render the
and merchants. demand very unequal to the supply.
VII. As to the creating, in some instances, a new, and Independently likewise of the artificial impediments,
securing in all a more certain and steady demand, for the which are created by the policy in question, there are
surplus produce of the soil. natural causes tending to render the external demand for
This is among the most important of the circumstances the surplus of Agricultural nations a precarious reliance.
which have been indicated. It is a principal mean, by The differences of seasons, in the countries, which are
which the establishment of manufactures contributes to consumers make immense differences in the produce of
an augmentation of the produce or revenue of a country, their own soils, in different years; and consequently in
and has an immediate and direct relation to the prosperity the degrees of their necessity for foreign supply. Plentiful
of Agriculture. harvests with them, especially if similar ones occur at
the same time in the countries, which are the furnishers,
It is evident, that the exertions of the husbandman will occasion of course a glut in the markets of the latter.
be steady or fluctuating, vigorous or feeble, in proportion
to the steadiness or fluctuation, adequateness, or Considering how fast and how much the progress
inadequateness of the markets on which he must depend, of new settlements in the United States must increse the
for the vent of the surplus, which may be produced by surplus produce of the soil, and weighing seriously the
his labour; and that such surplus in the ordinary course tendency of the system, which prevails among most of
of things will be greater or less in the same proportion. the commercial nations of Europe; whatever dependence
may be placed on the force of natural circumstances
For the purpose of this vent, a domestic market is to counteract the effects of an artificial policy; there
greatly to be preferred to a foreign one; because it is in appear strong reasons to regard the foreign demand for
the nature of things, far more to be relied upon. that surplus as too uncertain a reliance, and to desire a
It is a primary object of the policy of nations, to be able substitute for it, in an extensive domestic market.
to supply themselves with subsistence from their own To secure such a market, there is no other expedient,
soils; and manufacturing nations, as far as circumstances than to promote manufacturing establishments.
permit, endeavor to procure, from the same source, the Manufacturers who constitute the most numerous class,
raw materials necessary for their own fabrics. This after the Cultivators of land, are for that reason the
disposition, urged by the spirit of monopoly, is sometimes principal consumers of the surplus of their labour.
even carried to an injudicious extreme. It seems not
 This idea of an extensive domestic market for the the supply of its inhabitants. The power of doing this at
surplus produce of the soil is of the first consequence. least secures the great advantage of a division of labor;
It is of all things, that which most effectually conduces leaving the farmer free to pursue exclusively the culture
to a flourishing state of Agriculture. If the effect of of his land, and enabling him to procure with its products
manufactories should be to detach a portion of the hands, the manufactured supplies requisite either to his wants
which would otherwise be engaged in Tillage, it might or to his enjoyments. And though it should be true,
possibly cause a smaller quantity of lands to be under that in settled countries, the diversification of Industry
cultivation but by their tendency to procure a more is conducive to an increase in the productive powers of
certain demand for the surplus produce of the soil, they labour, and to an augmentation of revenue and capital; yet
would, at the same time, cause the lands which were in it is scarcely conceivable that there can be any (thing) of
cultivation to be better improved and more productive. so solid and permanent advantage to an uncultivated and
And while, by their influence, the condition of each unpeopled country as to convert its wastes into cultivated
individual farmer would be meliorated, the total mass and inhabited districts. If the Revenue, in the mean time,
of Agricultural production would probably be increased. should be less, the Capital, in the event, must be greater.
For this must evidently depend as much, if not more,
To these observations, the following appears to be a
upon the degree of improvement; than upon the number
satisfactory answer—
of acres under culture.
l. If the system of perfect liberty to industry and commerce
It merits particular observation, that the multiplication
were the prevailing system of nations—the arguments
of manufactories not only furnishes a Market for those
which dissuade a country in the predicament of the
articles, which have been accustomed to be produced
United States, from the zealous pursuits of manufactures
in abundance, in a country; but it likewise creates a
would doubtless have great force. It will not be affirmed,
demand for such as were either unknown or produced
that they might not be permitted, with few exceptions,
in considerable quantities. The bowels as well as the
to serve as a rule of national conduct. In such a state
surface of the earth are ransacked for articles which were
of things, each country would have the full benefit of its
before neglected. Animals, Plants and Minerals acquire
peculiar advantages to compensate for its deficiencies or
an utility and value, which were before unexplored.
disadvantages. If one nation were in condition to supply
The foregoing considerations seem sufficient to manufactured articles on better terms than another,
establish, as general propositions, That it is the interest that other might find an abundant indemnification in a
of nations to diversify the industrious pursuits of the superior capacity to furnish the produce of the soil. And
individuals, who compose them. That the establishment a free exchange, mutually beneficial, of the commodities
of manufactures is calculated not only to increase the which each was able to supply, on the best terms, might
general stock of useful and productive labour; but even be carried on between them, supporting in full vigour
to improve the state of Agriculture in particular; certainly the industry of each. And though the circumstances
to advance the interests of those who are engaged in it. which have been mentioned and others, which will
There are other views, that will be hereafter taken of be unfolded hereafter render it probable, that nations
the subject, which, it is conceived, will serve to confirm merely Agricultural would not enjoy the same degree of
these inferences. opulence, in proportion to their numbers, as those which
united manufactures with agriculture; yet the progressive
Previously to a further discussion of the objections
improvement of the lands of the former might, in the end,
to the encouragement of manufactures which have
atone for an inferior degree of opulence in the mean time:
been stated, it will be of use to see what can be said, in
and in a case in which opposite considerations are pretty
reference to the particular situation of the United States,
equally balanced, the option ought perhaps always to be,
against the conclusions appearing to result from what has
in favour of leaving Industry to its own direction.
been already offered.
But the system which has been mentioned, is far
It may be observed, and the idea is of no inconsiderable
from characterising the general policy of Nations. (The
weight, that however true it might be, that a state, which
prevalent one has been regulated by an opposite spirit.)
possessing large tracts of vacant and fertile territory, was
at the same time secluded from foreign commerce, would The consequence of it is, that the United States are to a
find its interest and the interest of Agriculture, in diverting certain extent in the situation of a country precluded from
a part of its population from Tillage to Manufactures; yet foreign Commerce. They can indeed, without difficulty
it will not follow, that the same is true of a state, which obtain from abroad the manufactured supplies, of which
having such vacant and fertile territory, has at the same they are in want; but they experience numerous and very
time ample opportunity of procuring from abroad, on injurious impediments to the emission and vent of their
good terms, all the fabrics of which it stands in need, for own commodities. Nor is this the case in reference to
a single foreign nation only. The regulations of several Tillage.
countries, with which we have the most extensive
But it does, by no means, follow, that the progress
intercourse, throw serious obstructions in the way of the
of new settlements would be retarded by the extension
principal staples of the United States.
of Manufactures. The desire of being an independent
In such a position of things, the United States proprietor of land is founded on such strong principles
cannot exchange with Europe on equal terms; and the in the human breast, that where the opportunity of
want of reciprocity would render them the victim of becoming so is as great as it is in the United States,
a system, which should induce them to confine their the proportion will be small of those, whose situations
views to Agriculture and refrain from Manufactures. A would otherwise lead to it, who would be diverted from
constant and encreasing necessity, on their part, for the it towards Manufactures. And it is highly probable, as
commodities of Europe, and only a partial and occasional already intimated, that the accessions of foreigners, who
demand for their own, in return, could not but expose originally drawn over by manufacturing views would
them to a state of impoverishment, compared with the afterwards abandon them for Agricultural, would be
opulence to which their political and natural advantages more than equivalent for those of our own Citizens, who
authorise them to aspire. might happen to be detached from them.
Remarks of this kind are not made in the spirit of The remaining objections to a particular encouragement
complaint. ‘Tis for the nations, whose regulations are of manufactures in the United States now require to be
alluded to, to judge for themselves, whether, by aiming examined.
at too much they do not lose more than they gain. ‘Tis
One of these turns on the proposition, that Industry, if
for the United States to consider by what means they can
left to itself, will naturally find its way to the most useful
render themselves least dependent, on the combinations,
and profitable employment: whence it is inferred, that
right or wrong of foreign policy.
manufactures without the aid of government will grow
It is no small consolation, that already the measures which up as soon and as fast, as the natural state of things and
have embarrassed our Trade, have accelerated internal the interest of the community may require.
improvements, which upon the whole have bettered our
Against the solidity of this hypothesis, in the full
affairs. To diversify and extend these improvements is
latitude of the terms, very cogent reasons may be offered.
the surest and safest method of indemnifying ourselves
These have relation to the strong influence of habit and
for any inconveniences, which those or similar measures
the spirit of imitation—the fear of want of success in
have a tendency to beget. If Europe will not take from
untried enterprises—the intrinsic difficulties incident to
us the products of our soil, upon terms consistent with
first essays towards a competition with those who have
our interest, the natural remedy is to contract as fast as
previously attained to perfection in the business to be
possible our wants of her.
attempted—the bounties premiums and other artificial
2. The conversion of their waste into cultivated encouragements, with which foreign nations second the
lands is certainly a point of great moment in the political exertions of their own Citizens in the branches, in which
calculations of the United States. But the degree in which they are to be rivalled.
this may possibly be retarded by the encouragement
Experience teaches, that men are often so much
of manufactories does not appear to countervail the
governed by what they are accustomed to see and practice,
powerful inducements to affording that encouragement.
that the simplest and most obvious improvements,
An observation made in another place is of a nature in the (most) ordinary occupations, are adopted with
to have great influence upon this question. If it cannot hesitation, reluctance and by slow gradations. The
be denied, that the interests even of Agriculture may be spontaneous transition to new pursuits, in a community
advanced more by having such of the lands of a state as are long habituated to different ones, may be expected to be
occupied under good cultivation, than by having a greater attended with proportionably greater difficulty. When
quantity occupied under a much inferior cultivation, former occupations ceased to yield a profit adequate to
and if Manufactories, for the reasons assigned, must be the subsistence of their followers, or when there was an
admitted to have a tendency to promote a more steady absolute deficiency of employment in them, owing to
and vigorous cultivation of the lands occupied than the superabundance of hands, changes would ensue; but
would happen without them—it will follow, that they are these changes would be likely to be more tardy than might
capable of indemnifying a country for a diminution of the consist with the interest either of individuals or of the
progress of new settlements; and may serve to increase Society. In many cases they would not happen, while a
both the capital (value) and the income of its lands, even bare support could be ensured by an adherence to ancient
though they should abrige the number of acres under courses; though a resort to a more profitable employment
might be practicable. To produce the desireable changes, probability. The existence or assurance of aid from the
as early as may be expedient, may therefore require the government of the country, in which the business is to
incitement and patronage of government. be introduced, may be essential to fortify adventurers
against the dread of such combinations, to defeat their
The apprehension of failing in new attempts is perhaps
effects, if formed and to prevent their being formed, by
a more serious impediment. There are dispositions apt to
demonstrating that they must in the end prove fruitless.
be attracted by the mere novelty of an undertaking—but
these are not always those best calculated to give it success. Whatever room there may be for an expectation that
To this, it is of importance that the confidence of cautious the industry of a people, under the direction of private
sagacious capitalists both citizens and foreigners, should interest, will upon equal terms find out the most beneficial
be excited. And to inspire this description of persons employment for itself, there is none for a reliance, that it
with confidence, it is essential, that they should be made will struggle against the force of unequal terms, or will of
to see in any project, which is new, and for that reason itself surmount all the adventitious barriers to a successful
alone, if, for no other, precarious, the prospect of such a competition, which may have been erected either by the
degree of countenance and support from government, as advantages naturally acquired from practice and previous
may be capable of overcoming the obstacles, inseperable possession of the ground, or by those which may have
from first experiments. sprung from positive regulations and an artificial policy.
This general reflection might alone suffice as an answer
The superiority antecedently enjoyed by nations, who
to the objection under examination; exclusively of the
have preoccupied and perfected a branch of industry,
weighty considerations which have been particularly
constitutes a more formidable obstacle, than either of
urged.
those, which have been mentioned, to the introduction of
the same branch into a country, in which it did not before The objections to the pursuit of manufactures in
exist. To maintain between the recent establishments the United States, which next present themselves to
of one country and the long matured establishments of discussion, represent an impracticability of success,
another country, a competition upon equal terms, both arising from three causes—scarcity of hands—dearness
as to quality and price, is in most cases impracticable. of labour—want of capital.
The disparity in the one, or in the other, or in both, must
The two first circumstances are to a certain extent real,
necessarily be so considerable as to forbid a successful
and, within due limits, ought to be admitted as obstacles
rivalship, without the extraordinary aid and protection of
to the success of manufacturing enterprise in the United
government.
States. But there are various considerations, which lessen
But the greatest obstacle of all to the successful their force, and tend to afford an assurance that they are
prosecution of a new branch of industry in a country, not sufficient to prevent the advantageous prosecution of
in which it was before unknown, consists, as far as the many very useful and extensive manufactories.
instances apply, in the bounties premiums and other aids
With regard to scarcity of hands, the fact itself must
which are granted, in a variety of cases, by the nations,
be applied with no small qualification to certain parts
in which the establishments to be imitated are previously
of the United States. There are large districts, which
introduced. It is well known (and particular examples
may be considered as pretty fully peopled; and which
in the course of this report will be cited) that certain
notwithstanding a continual drain for distant settlement,
nations grant bounties on the exportation of particular
are thickly interspersed with flourishing and increasing
commodities, to enable their own workmen to undersell
towns. If these districts have not already reached the
and supplant all competitors, in the countries to which
point, at which the complaint of scarcity of hands ceases,
those commodities are sent. Hence the undertakers of
they are not remote from it, and are approaching fast
a new manufacture have to contend not only with the
towards it: And having perhaps fewer attractions to
natural disadvantages of a new undertaking, but with the
agriculture, than some other parts of the Union, they
gratuities and remunerations which other governments
exhibit a proportionably stronger tendency towards
bestow. To be enabled to contend with success, it
other kinds of industry. In these districts, may be
is evident, that the interference and aid of their own
discerned, no inconsiderable maturity for manufacturing
government are indispensible.
establishments.
Combinations by those engaged in a particular branch
But there are circumstances, which have been already
of business in one country, to frustrate the first efforts
noticed with another view, that materially diminish
to introduce it into another, by temporary sacrifices,
every where the effect of a scarcity of hands. These
recompensed perhaps by extraordinary indemnifications
circumstances are—the great use which can be made of
of the government of such country, are believed to
women and children; on which point a very pregnant and
have existed, and are not to be regarded as destitute of
instructive fact has been mentioned—the vast extension in regard to Artificers and manufacturers than in regard
given by late improvements to the employment of to country labourers; and while a careful comparison
Machines, which substituting the Agency of fire and shews, that there is, in this particular, much exaggeration;
water, has prodigiously lessened the necessity for manual it is also evident that the effect of the degree of disparity,
labor—the employment of persons ordinarily engaged which does truly exist, is diminished in proportion to the
in other occupations, during the seasons, or hours of use which can be made of machinery.
leisure; which, besides giving occasion to the exertion
To illustrate this last idea—Let it be supposed, that
of a greater quantity of labour by the same number of
the difference of price, in two Countries, of a given
persons, and thereby encreasing the general stock of
quantity of manual labour requisite to the fabrication of
labour, as has been elsewhere remarked, may also be
a given article is as 10; and that some mechanic power is
taken into the calculation, as a resource for obviating
introduced into both countries, which performing half the
the scarcity of hands—lastly the attraction of foreign
necessary labour, leaves only half to be done by hand, it
emigrants. Whoever inspects, with a careful eye, the
is evident, that the difference in the cost of the fabrication
composition of our towns will be made sensible to what
of the article in question, in the two countries, as far as
an extent this resource may be relied upon. This exhibits
it is connected with the price of labour, will be reduced
a large proportion of ingenious and valuable workmen,
from 10 to 5, in consequence of the introduction of that
in different arts and trades, who, by expatriating from
power.
Europe, have improved their own condition, and added
to the industry and wealth of the United States. It is a This circumstance is worthy of the most particular
natural inference from the experience, we have already attention. It diminishes immensely one of the objections
had, that as soon as the United States shall present the most strenuously urged, against the success of
countenance of a serious prosecution of Manufactures— manufactures in the United States.
as soon as foreign artists shall be made sensible that To procure all such machines as are known in any part
the state of things here affords a moral certainty of of Europe, can only require a proper provision and due
employment and encouragement competent numbers pains. The knowledge of several of the most important of
of European workmen will transplant themselves, them is already possessed. The preparation of them here,
effectually to ensure the success of the design. How is in most cases, practicable on nearly equal terms. As far
indeed can it otherwise happen considering the various as they depend on Water, some superiority of advantages
and powerful inducements, which the situation of this may be claimed, from the uncommon variety and greater
country offers; addressing themselves to so many strong cheapness of situations adapted to Mill seats, with which
passions and feelings, to so many general and particular different parts of the United States abound.
interests?
So far as the dearness of labour may be a consequence
It may be affirmed therefore, in respect to hands for of the greatness of profits in any branch of business, it is
carrying on manufactures, that we shall in great measure no obstacle to its success. The Undertaker can afford to
trade upon a foreign Stock; reserving our own, for the pay the price.
cultivation of our lands and the manning of our Ships;
as far as character and circumstances (shall) incline. There are grounds to conclude that undertakers of
It is not unworthy of remark, that the objection to the Manufacturers in this Country can at this time afford
success of manufactures, deduced from the scarcity of to pay higher wages to the workmen they may employ
hands, is alike applicable to Trade and Navigation; and than are paid to similar workmen in Europe. The prices
yet these are perceived to flourish, without any sensible of foreign fabrics, in the markets of the United States,
impediment from that cause. which will for a long time regulate the prices of the
domestic ones, may be considered as compounded of
As to the dearness of labor (another of the the following ingredients—The first cost of materials,
obstacles alledged) this has relation principally to two including the Taxes, if any, which are paid upon them
circumstances, one that which has been just discussed, or where they are made: the expence of grounds, buildings
the scarcity of hands, the other, the greatness of profits. machinery and tools: the wages of the persons employed
As far as it is a consequence of the scarcity of hands, in the manufactory: the profits on the capital or Stock
it is mitigated by all the considerations which have been employed: the commissions of Agents to purchase them
adduced as lessening that deficiency. where they are made; the expence of transportation to the
United States (including insurance and other incidental
It is certain too, that the disparity in this respect,
charges;) the taxes on duties, if any (and fees of office)
between some of the most manufacturing parts of Europe
which are paid on their exportation: the taxes or duties
and a large proportion of the United States, is not nearly
(and fees of office) which are paid on their importation.
so great as is commonly imagined. It is also much less
 As to the first of these items, the cost of materials, the effect of any given quantity of money, as capital, or in
advantage upon the whole, is at present on the side of other words, as a medium for circulating the industry
the United States, and the difference, in their favor, must and property of a nation, may be encreased by the very
increase, in proportion as a certain and extensive domestic circumstance of the additional motion, which is given to
demand shall induce the proprietors of land to devote more it by new objects of employment. That effect, like the
of their attention to the production of those materials. It momentum of descending bodies, may not improperly be
ought not to escape observation, in a comparison on this represented, as in a compound ratio to mass and velocity.
point, that some of the principal manufacturing Countries It seems pretty certain, that a given sum of money, in
of Europe are much more dependent on foreign supply a situation, in which the quick impulses of commercial
for the materials of their manufactures, than would be the activity were little felt, would appear inadequate to the
United States, who are capable of supplying themselves, circulation of as great a quantity of industry and property,
with a greater abundance, as well as a greater variety of as in one, in which their full influence was experienced.
the requisite materials.
It is not obvious, why the same objection might
As to the second item, the expence of grounds buildings not as well be made to external commerce as to
machinery and tools, an equality at least may be assumed; manufactures; since it is manifest that our immense tracts
since advantages in some particulars will counterbalance of land occupied and unoccupied are capable of giving
temporary disadvantages in others. employment to more capital than is actually bestowed
upon them. It is certain, that the United States offer a
As to the third item, or the article of wages, the
vast field for the advantageous employment of Capital;
comparison certainly turns against the United States,
but it does not follow, that there will not be found, in
though as before observed not in so great a degree as is
one way or another, a sufficient fund for the successful
commonly supposed.
prosecution of any species of industry which is likely to
The fourth item is alike applicable to the foreign and prove truly beneficial.
to the domestic manufacture. It is indeed more properly
The following considerations are of a nature to remove
a result than a particular, to be compared.
all inquietude on the score of want of Capital.
But with respect to all the remaining items, they are
The introduction of Banks, as has been shewn on
alone applicable to the foreign manufacture, and in the
another occasion, has a powerful tendency to extend the
strictest sense extraordinaries; constituting a sum of extra
active Capital of a Country. Experience of the Utility of
charge on the foreign fabric, which cannot be estimated,
these Institutions is multiplying them in the United States.
at less than (from 15 to 30) Per Cent. on the cost of it at
It is probable that they will be established wherever they
the manufactory.
can exist with advantage; and wherever, they can be
This sum of extra charge may confidently be regarded supported, if administered with prudence, they will add
as more than a Counterpoise for the real difference in new energies to all pecuniary operations.
the price of labour; and is a satisfactory proof that
The aid of foreign Capital may safely, and, with
manufactures may prosper in defiance of it in the United
considerable latitude be taken into calculation. Its
States. To the general allegation, connected with the
instrumentality has been long experienced in our external
circumstances of scarcity of hands and dearness of
commerce; and it has begun to be felt in various other
labour, that extensive manufactures can only grow out
modes. Not only our funds, but our Agriculture and
of a redundant or full population, it will be sufficient,
other internal improvements have been animated by it.
to answer generally, that the fact has been otherwise—
It has already in a few instances extended even to our
That the situation alleged to be an essential condition of
manufactures.
success, has not been that of several nations, at periods
when they had already attained to maturity in a variety of It is a well known fact, that there are parts of Europe,
manufactures. which have more Capital, than profitable domestic
objects of employment. Hence, among other proofs, the
The supposed want of Capital for the prosecution of
large loans continually furnished to foreign states. And
manufactures in the United States is the most indefinite
it is equally certain that the capital of other parts may
of the objections which are usually opposed to it.
find more profitable employment in the United States,
It is very difficult to pronounce any thing precise than at home. And notwithstanding there are weighty
concerning the real extent of the monied capital of a inducements to prefer the employment of capital at home
Country, and still more concerning the proportion which even at less profit, to an investment of it abroad, though
it bears to the objects that invite the employment of with greater gain, yet these inducements are overruled
Capital. It is not less difficult to pronounce how far the either by a deficiency of employment or by a very
material difference in profit. Both these Causes operate as a circumstance of Moment in the calculation that the
to produce a transfer of foreign capital to the United progressive population and improvement of the United
States. ‘Tis certain, that various objects in this country States insure a continually increasing domestic demand
hold out advantages, which are with difficulty to be for the fabrics which he shall produce, not to be affected
equalled elsewhere; and under the increasingly favorable by any external casualties or vicissitudes.
impressions, which are entertained of our government,
But while there are Circumstances sufficiently strong
the attractions will become more and More strong. These
to authorise a considerable degree of reliance on the aid
impressions will prove a rich mine of prosperity to the
of foreign Capital towards the attainment of the object in
Country, if they are confirmed and strengthened by the
view, it is satisfactory to have good grounds of assurance,
progress of our affairs. And to secure this advantage,
that there are domestic resources of themselves adequate
little more is now necessary, than to foster industry, and
to it. It happens, that there is a species of Capital actually
cultivate order and tranquility, at home and abroad.
existing within the United States, which relieves from all
It is not impossible, that there may be persons inquietude on the score of want of Capital—This is the
disposed to look with a jealous eye on the introduction funded Debt.
of foreign Capital, as if it were an instrument to deprive
The effect of a funded debt, as a species of Capital,
our own citizens of the profits of our own industry:
has been Noticed upon a former Occasion; but a more
But perhaps there never could be a more unreasonable
particular elucidation of the point seems to be required
jealousy. Instead of being viewed as a rival, it ought to
by the stress which is here laid upon it. This shall
be Considered as a most valuable auxiliary; conducing
accordingly be attempted.
to put in Motion a greater Quantity of productive labour,
and a greater portion of useful enterprise than could Public Funds answer the purpose of Capital, from the
exist without it. It is at least evident, that in a Country estimation in which they are usually held by Monied men;
situated like the United States, with an infinite fund of and consequently from the Ease and dispatch with which
resources yet to be unfolded, every farthing of foreign they can be turned into money. This capacity of prompt
capital, which is laid out in internal ameliorations, and convertibility into money causes a transfer of stock to be
in industrious establishments of a permanent nature, is a in a great number of Cases equivalent to a payment in
precious acquisition. coin. And where it does not happen to suit the party who
is to receive, to accept a transfer of Stock, the party who
And whatever be the objects which originally attract
is to pay, is never at a loss to find elsewhere a purchaser
foreign Capital, when once introduced, it may be directed
of his Stock, who will furnish him in lieu of it, with the
towards any purpose of beneficial exertion, which is
Coin of which he stands in need. Hence in a sound and
desired. And to detain it among us, there can be no
settled state of the public funds, a man possessed of a
expedient so effectual as to enlarge the sphere, within
sum in them can embrace any scheme of business, which
which it may be usefully employed: Though induced
offers, with as much confidence as if he were possessed
merely with views to speculations in the funds, it may
of an equal sum in Coin.
afterwards be rendered subservient to the Interests of
Agriculture, Commerce and Manufactures. This operation of public funds as capital is too
obvious to be denied; but it is objected to the Idea of
But the attraction of foreign Capital for the direct
their operating as an augmentation of the Capital of the
purpose of Manufactures ought not be deemed a
community, that they serve to occasion the destruction of
chimerial expectation. There are already examples of
some other capital to an equal amount.
it, as remarked in another place. And the examples, if
the disposition be cultivated can hardly fail to multiply. The Capital which alone they can be supposed to
There are also instances of another kind, which serve to destroy must consist of—The annual revenue, which is
strengthen the expectation. Enterprises for improving applied to the payment of Interest on the debt, and to the
the Public Communications, by cutting canals, opening gradual redemption of the principal—The amount of the
the obstructions in Rivers and erecting bridges, have Coin, which is employed in circulating the funds, or, in
received very material aid from the same source. other words, in effecting the different alienations which
they undergo.
When the Manufacturing Capitalist of Europe shall
advert to the many important advantages, which have But the following appears to be the true and accurate
been intimated, in the Course of this report, he cannot view of this matter.
but perceive very powerful inducements to a transfer of First. As to the point of the Annual Revenue requisite
himself and his Capital to the United States. Among the for Payment of interest and redemption of principal.
reflections, which a most interesting peculiarity of situation
is calculated to suggest, it cannot escape his observation, As a determinate proportion will tend to perspicuity in
the reasoning, let it be supposed that the annual revenue of the debt, which is purchased by foreigners, and that
to be applied, corresponding with the modification of the which remains in the hands of citizens. But the general
6 per Cent stock of the United States, is in the ratio of effect in each case, though in different degrees, is to add
eight upon the hundred, that is in the first instance six on to the active capital of the Country.
Account of interest, and two on account of Principal.
Hitherto the reasoning has proceeded on a concession
Thus far it is evident, that the Capital destroyed to of the position, that there is a destruction of some
the capital created, would bear no greater proportion, other capital, to the extent of the annuity appropriated
than 8 to 100. There would be withdrawn from the total to the payment of the Interest and the redemption of
mass of other capitals a sum of eight dollars to be paid the principal of the debt but in this, too much has been
to the public creditor; while he would be possessed of a conceded. There is at most a temporary transfer of some
sum of One Hundred dollars, ready to be applied to any other capital, to the amount of the Annuity, from those
purpose, to be embarked in any enterprise, which might who pay to the Creditor who receives; which he again
appear to him eligible. Here then the Augmentation of restores to the circulation to resume the offices of a
Capital, or the excess of that which is produced, beyond capital. This he does either immediately by employing
that which is destroyed is equal to Ninety two dollars. the money in some branch of Industry, or mediately by
To this conclusion, it may be objected, that the sum of lending it to some other person, who does so employ
Eight dollars is to be withdrawn annually, until the whole it or by spending it on his own maintenance. In either
hundred is extinguished, and it may be inferred, that in supposition there is no destruction of capital, there
process of time a capital will be destroyed equal to that is nothing more than a suspension of its motion for a
which is at first created. time; that is, while it is passing from the hands of those
who pay into the Public coffers, and thence through the
But it is nevertheless true, that during the whole of
public Creditor into some other Channel of circulation.
the interval, between the creation of the Capital of 100
When the payments of interest are periodical and quick
dollars, and its reduction to a sum not greater than that
and made by instrumentality of Banks the diversion
of the annual revenue appropriated to its redemption—
or suspension of capital may almost be denominated
there will be a greater active capital in existence than
momentary. Hence the deduction on this Account is far
if no debt had been Contracted. The sum drawn from
less, than it at first sight appears to be.
other Capitals in any one year will not exceed eight
dollars; but there will be at every instant of time during There is evidently, as far as regards the annuity no
the whole period, in question a sum corresponding with destruction nor transfer of any other Capital, than that
so much of the principal, as remains unredeemed, in the portion of the income of each individual, which goes
hands of some person, or other, employed, or ready to to make up the Annuity. The land which furnishes the
be employed in some profitable undertaking. There will Farmer with the sum which he is to contribute remains
therefore constantly be more capital, in capacity to be the same; and the like may be observed of other Capitals.
employed, than capital taken from employment. The Indeed as far as the Tax, which is the object of contribution
excess for the first year has been stated to be Ninety two (as frequently happens, when it does not oppress, by its
dollars; it will diminish yearly, but there always will be weight) may have been a Motive to greater exertion
an excess, until the principal of the debt is brought to in any occupation; it may even serve to encrease the
a level with the redeeming annuity, that is, in the case contributory Capital: This idea is not without importance
which has been assumed by way of example, to eight in the general view of the subject.
dollars. The reality of this excess becomes palpable,
It remains to see, what further deduction ought to
if it be supposed, as often happens, that the citizen of a
be made from the capital which is created, by the
foreign Country imports into the United States 100 dollars
existence of the Debt; on account of the coin, which is
for the purchase of an equal sum of public debt. Here
employed in its circulation. This is susceptible of much
is an absolute augmentation of the mass of Circulating
less precise calculation, than the Article which has just
Coin to the extent of 100 dollars. At the end of a year
been discussed. It is impossible to say what proportion
the foreigner is presumed to draw back eight dollars on
of coin is necessary to carry on the alienations which
account of his Principal and Interest, but he still leaves,
any species of property usually undergoes. The quantity
Ninety two of his original Deposit in circulation, as
indeed varies according to circumstances. But it may still
he in like manner leaves Eighty four at the end of the
without hesitation be pronounced, from the quickness of
second year, drawing back then also the annuity of Eight
the rotation, or rather of the transitions, that the medium
Dollars: And thus the Matter proceeds; The capital left
of circulation always bears but a small proportion to
in circulation diminishing each year, and coming nearer
the amount of the property circulated. And it is thence
to the level of the annuity drawnback. There are however
satisfactorily deducible, that the coin employed in the
some differences in the ultimate operation of the part
Negociations of the funds and which serves to give them the improvement of his farm may, in the end, add to his
activity, as capital, is incomparably less than the sum of Stock of real riches.
the debt negotiated for the purposes of business.
There are respectable individuals, who from a just
It ought not however, to be omitted, that the negotiation aversion to an accumulation of Public debt, are unwilling
of the funds becomes itself a distinct business; which to concede to it any kind of utility, who can discern
employs, and by employing diverts a portion of the no good to alleviate the ill with which they suppose it
circulating coin from other pursuits. But making due pregnant; who cannot be persuaded that it ought in
allowance for this circumstance there is no reason to any sense to be viewed as an increase in capital lest it
conclude, that the effect of the diversion of coin in the should be inferred, that the more debt the more capital,
whole operation bears any considerable proportion to the the greater the burthens the greater the blessings of the
amount of the Capital to which it gives activity. The sum community.
of the debt in circulation is continually at the Command,
But it interests the public Councils to estimate every
of any useful enterprise—the coin itself which circulates
object as it truly is; to appreciate how far the good in any
it, is never more than momentarily suspended from its
measure is compensated by the ill; or the ill by the good,
ordinary functions. It experiences an incessant and rapid
Either of them is seldom unmixed.
flux and reflux to and from the Channels of industry to
those of speculations in the funds. Neither will it follow, that an accumulation of debt
is desireable, because a certain degree of it operates as
There are strong circumstances in confirmation of
capital. There may be a plethora in the political, as in the
this Theory. The force of Monied Capital which has
Natural body; There may be a state of things in which any
been displayed in Great Britain, and the height to which
such artificial capital is unnecessary. The debt too may be
every species of industry has grown up under it, defy a
swelled to such a size, as that the greatest part of it may
solution from the quantity of coin which that kingdom
cease to be useful as a Capital, serving only to pamper
has ever possessed. Accordingly it has been Coeval with
the dissipation of idle and dissolute individuals: as that
its funding system, the prevailing opinion of the men
the sums required to pay the Interest upon it may become
of business, and of the generality of the most sagacious
oppressive, and beyond the means, which a government
theorists of that country, that the operation of the public
can employ, consistently with its tranquility, to raise
funds as capital has contributed to the effect in question.
them; as that the resources of taxation, to face the debt,
Among ourselves appearances thus far favour the same
may have been strained too far to admit of extensions
Conclusion. Industry in general seems to have been
adequate to exigencies, which regard the public safety.
reanimated. There are symptoms indicating an extension
of our Commerce. Our navigation has certainly of late Where this critical point is, cannot be pronounced, but
had a Considerable spring, and there appears to be in many it is impossible to believe, that there is not such a point.
parts of the Union a command of capital, which till lately, And as the vicissitudes of Nations beget a perpetual
since the revolution at least, was unknown. But it is at the tendency to the accumulation of debt, there ought to be
same time to be acknowledged, that other circumstances in every government a perpetual, anxious and unceasing
have concurred, (and in a great degree) in producing the effort to reduce that, which at any time exists, as fast as
present state of things, and that the appearances are not shall be practicable consistently with integrity and good
yet sufficiently decisive, to be intirely relied upon. faith.
In the question under discussion, it is important to Reasonings on a subject comprehending ideas so
distinguish between an absolute increase of Capital, or abstract and complex, so little reducible to precise
an accession of real wealth, and an artificial increase calculation as those which enter into the question just
of Capital, as an engine of business, or as an instrument discussed, are always attended with a danger of runing
of industry and Commerce. In the first sense, a funded into fallacies. Due allowance ought therefore to be made
debt has no pretensions to being deemed an increase of for this possibility. But as far as the Nature of the subject
Capital; in the last, it has pretensions which are not easy admits of it, there appears to be satisfactory ground for
to be controverted. Of a similar nature is bank credit and a belief, that the public funds operate as a resource of
in an inferior degree, every species of private credit. capital to the Citizens of the United States, and, if they
But though a funded debt is not in the first instance, an are a resource at all, it is an extensive one.
absolute increase of Capital, or an augmentation of real To all the arguments which are brought to evince
wealth; yet by serving as a New power in the operation the impracticability of success in manufacturing
of industry, it has within certain bounds a tendency to establishments in the United States, it might have been
increase the real wealth of a Community, in like manner a sufficient answer to have referred to the experience
as money borrowed by a thrifty farmer, to be laid out in
of what has been already done. It is certain that several XIII
important branches have grown up and flourished with
Carriages of all kinds
a rapidity which surprises: affording an encouraging
assurance of success in future attempts: of these it may XIV
not be improper to enumerate the most considerable. Snuff, chewing and smoaking Tobacco.
I. of Skins. XV
Tanned and tawed leather dressed skins, shoes,boots and Starch and Hairpowder.
Slippers, harness and sadlery of all kinds. Portmanteau’s
and trunks, leather breeches, gloves, muffs and tippets, XVI
parchment and Glue. Lampblack and other painters colours,
II of Iron XVII
Barr and Sheet Iron, Steel, Nail-rods and Nails, implements Gunpowder
of husbandry, Stoves, pots and other household utensils,
the steel and Iron work of carriages and for Shipbuilding, Besides manufactories of these articles which are
Anchors, scale beams and Weights and Various tools of carried on as regular Trades, and have attained to a
Artificers, arms of different kinds; though the manufacture considerable degree of maturity, there is a vast scene
of these last has of late diminished for want of demand. of household manufacturing, which contributes more
largely to the supply of the Community, than could be
III of Wood. imagined; without having made it an object of particular
Ships, Cabinet Wares and Turnery, Wool and Cotton cards enquiry. This observation is the pleasing result of the
and other Machinery for manufactures and husbandry, investigation, to which the subject of the report has led,
Mathematical instruments, Coopers wares of every kind. and is applicable as well to the Southern as to the middle
and Northern States; great quantities of coarse cloths,
IV of Flax and Hemp coatings, serges, and flannels, linsey Woolseys, hosiery
Cables, sail-cloth, Cordage, twine and pack-thread. of Wool, cotton and thread, coarse fustians, jeans and
Muslins, checked and striped cotton and linen goods, bed
V
ticks, Coverlets and Counterpanes, Tow linens, coarse
Bricks and coarse tiles and Potters Wares. shirtings, sheetings, toweling and table linen, and various
mixtures of wool and cotton, and of Cotton and flax are
VI
made in the household way, and in many instances to an
Ardent Spirits and malt liquors. extent not only sufficient for the supply of the families
VII in which they are made, but for sale, and (even in some
cases) for exportation. It is computed in a number of
Writing and printing Paper, sheathing and Wrapping districts that 2/3, 3/4 and even 4/5 of all the Clothing of
Paper, pasteboards, fillers or press papers, paper hangings. the Inhabitants are made by themselves. The importance
VIII of so great a progress, as appears to have been made in
family Manufactures, within a few years, both in a moral
Hats of furr and Wool and of mixtures of both, Womens and political view, renders the fact highly interesting.
Stuff and Silk shoes.
Neither does the above enumeration comprehend
IX all the articles that are manufactured as regular Trades.
Refined Sugars Many others occur, which are equally well established,
but which not being of equal importance have been
X omitted. And there are many attempts still in their
Oil of Animals and seeds; Soap, Spermaceti and Tallow Infancy, which though attended with very favorable
Candles. appearances, could not have been properly comprized
in an enumeration of manufactories already established.
XI
There are other articles also of great importance, which
Copper and brass wares, particularly utensils for tho’ strictly speaking manufactures are omitted, as being
distillers, Sugar refiners and brewers, And—Irons and immediately connected with husbandry: such are flour,
other Artic1es for household Use, philosophcal apparatus pot and pearl ash, Pitch, tar, turpentine and the like.
XII There remains to be noticed an objection to the
encouragement of manufactures, of a nature different
Tin Wares, for most purposes of Ordinary use.
from those which question the probability of success. The objections which are commonly made to the
This is derived from its supposed tendency to give a expediency of encouraging, and to the probability of
monopoly of advantages to particular classes at the succeeding in manufacturing pursuits, in the United
expence of the rest of the community, who, it is affirmed, states, having now been discussed; the Considerations
would be able to procure the requisite supplies of which have appeared in the Course of the discussion,
manufactured articles on better terms from foreigners, recommending that species of industry to the patronage
than from our own Citizens, and who it is alledged, are of the Government, will be materially strengthened by a
reduced to a necessity of paying an enhanced price for few general and some particular topics, which have been
whatever they want, by every measure, which obstructs naturally reserved for subsequent Notice.
the free competition of foreign commodities.
I. There seems to be a moral certainty, that the trade of
It is not an unreasonable supposition, that measures, a country which is both manufacturing and Agricultural
which serve to abridge the free competition of foreign will be more lucrative and prosperous, than that of a
Articles, have a tendency to occasion an enhancement of Country, which is, merely Agricultural.
prices and it is not to be denied that such is the effect
One reason for this is found in that general effort of
in a number of Cases; but the fact does not uniformly
nations (which has been already mentioned) to procure
correspond with the theory. A reduction of prices
from their own soils, the articles of prime necessity
has in several instances immediately succeeded the
requisite to their own consumption and use; and which
establishment of a domestic manufacture. Whether it
serves to render their demand for a foreign supply of
be that foreign Manufacturers endeavour to supplant by
such articles in a great degree occasional and contingent.
underselling our own, or whatever else be the cause, the
Hence, while the necessities of nations exclusively
effect has been such as is stated, and the reverse of what
devoted to Agriculture, for the fabrics of manufacturing
might have been expected.
states are constant and regular, the wants of the latter
But though it were true, that the immediate and certain for the products of the former, are liable to very
effect of regulations controlling the competition of considerable fluctuations and interruptions. The great
foreign with domestic fabrics was an increase of price, it inequalities resulting from difference of seasons, have
is universally true, that the contrary is the ultimate effect been elsewhere remarked: This uniformity of demand
with every successful manufacture. When a domestic on one side, and unsteadiness of it, on the other, must
manufacture has attained to perfection, and has engaged necessarily have a tendency to cause the general course
in the prosecution of it a competent number of Persons, of the exchange of commodities between the parties to
it invariably becomes cheaper. Being free from the tum to the disadvantage of the merely agricultural States.
heavy charges, which attend the importation of foreign Peculiarity of situation, a climate and soil adapted to the
commodities, it can be afforded, and accordingly seldom production of peculiar commodities, may, sometimes,
or never fails to be sold Cheaper, in process of time, than contradict the rule; but there is every reason to believe
was the foreign Article for which it is a substitute. The that it will be found in the Main, a just one.
internal competition, which takes place, soon does away
Another circumstance which gives a superiority
every thing like Monopoly, and by degrees reduces the
of commercial advantage to states, that manufacture
price of the Article to the minimum of a reasonable profit
as well as cultivate, consists in the more numerous
on the Capital employed. This accords with the reason of
attractions, which a more diversified market offers to
the thing and with experience.
foreign Customers, and greater scope, which it affords
Whence it follows, that it is the interest of a community to mercantile enterprise. It is a position of indisputable
with a view to eventual and permanent economy, to truth in Commerce, depending too on very obvious
encourage the growth of manufactures. In a national reasons, that the greatest resort will ever be to those marts
view, a temporary enhancement of price must always be where commodities, while equally abundant, are most
well compensated by a permanent reduction of it. various. Each difference of kind holds out an additional
inducement. And it is a position not less clear, that the
It is a reflection, which may with propriety be
field of enterprise must be enlarged to the Merchants
indulged here, that this eventual diminution of the prices
of a Country, in proportion to the variety as well as the
of manufactured Articles; which is the result of internal
abundance of commodities which they find at home for
manufacturing establishments, has a direct and very
exportation to foreign Markets .
important tendency to benefit agriculture. It enables the
farmer, to procure with a smaller quantity of his labour, A third circumstance, perhaps not inferior to either of
the manufactured produce of which he stands in need, the other two, conferring the superiority which has been
and consequently increases the value of his income and stated has relation to the stagnations of demand for certain
property. commodities which at some time or other interfere more
or less with the sale of all. The Nation which can bring to preceding case, that causes irrelative to the state of
Market, but few articles is likely to be more quickly and manufactures account, in a degree, for the Phoenomena
sensibly affected by such stagnations, than one, which is remarked. The continual progress of new settlements has
always possessed of a great variety of commodities. The a natural tendency to occasion an unfavorable balance of
former frequently finds too great a proportion of its stock Trade; though it indemnifies for the inconvenience, by
of materials, for sale or exchange, lying on hand—or is that increase of the national capital which flows from
obliged to make injurious sacrifices to supply its wants the conversion of waste into improved lands: And the
of foreign articles, which are Numerous and urgent, in different degrees of external commerce, which are
proportion to the smallness of the number of its own. carried on by the different States, may make material
The latter commonly finds itself indemnified, by the high differences in the comparative state of their wealth. The
prices of some articles, for the low prices of others—and first circumstance has reference to the deficiency of coin
the Prompt and advantageous sale of those articles which and the increase of debt previous to the revolution; the
are in demand enables its merchant the better to wait for last to the advantages which the most manufacturing
a favorable change, in respect to those which are not. states appear to have enjoyed, over the others, since the
There is ground to believe, that a difference of situation, termination of the late War.
in this particular, has immensely different effects upon
But the uniform appearance of an abundance of specie,
the wealth and prosperity of Nations.
as the concomitant of a flourishing state of manufactures
From these circumstances collectively, two important and of the reverse, where they do not prevail, afford a
inferences are to be drawn, one, that there is always a strong presumption of their favourable operation upon
higher probability of a favorable balance of Trade, in the wealth of a Country.
regard to countries in which manufactures founded on
Not only the wealth; but the independence and security
the basis of a thriving Agriculture flourish, than in regard
of a Country, appear to be materially connected with the
to those, which are confined wholly or almost wholly to
prosperity of manufactures. Every nation, with a view
Agriculture; the other (which is also a consequence of the
to those great objects, ought to endeavour to possess
first) that countries of the former description are likely to
within itself all the essentials of national supply. These
possess more pecuniary wealth, or money, than those of
comprise the means of Subsistence habitation clothing
the latter.
and defence.
Facts appear to correspond with this conclusion. The
The possession of these is necessary to the perfection
importations of manufactured supplies seem invariably to
of the body politic, to the safety as well as to the
drain the merely Agricultural people of their wealth. Let
welfare of the society; the want of either, is the want of
the situation of the manufacturing countries of Europe be
an important organ of political life and Motion; and in
compared in this particular, with that of Countries which
the various crises which await a state, it must severely
only cultivate, and the disparity will be striking. Other
feel the effects of any such deficiency. The extreme
causes, it is true, help to Account for this disparity between
embarrassments of the United States during the late
some of them; and among these causes, the relative state
War, from an incapacity of supplying themselves, are
of Agriculture; but between others of them, the most
still matter of keen recollection: A future war might be
prominent circumstance of dissimilitude arises from the
expected again to exemplify the mischiefs and dangers of
Comparative state of Manufactures. In corroboration
a situation, to which that incapacity is still in too great a
of the same idea, it ought not to escape remark, that the
degree applicable, unless changed by timely and vigorous
West India Islands, the soils of which are the most fertile,
exertion. To effect this change as fast as shall be prudent,
and the Nation, which in the greatest degree supplies the
merits all the attention and all the Zeal of our Public
rest of the world, with the precious metals, exchange to a
Councils; ‘tis the next great work to be accomplished.
loss with almost every other Country.
The want of a Navy to protect our external commerce,
As far as experience at home may guide, it will lead
as long as it shall Continue, must render it a peculiarly
to the same conclusion. Previous to the revolution, the
precarious reliance, for the supply of essential articles,
quantity of coin, possessed by the colonies, which now
and must serve to strengthen prodigiously the arguments
compose the United states, appeared, to be inadequate
in favour of manufactures.
to their circulation; and their debt to Great Britain was
progressive. Since the Revolution, the states, in which To these general Considerations are added some of a
manufactures have most increased, have recovered more particular nature.
fastest from the injuries of the late War, and abound most Our distance from Europe, the great fountain of
m pecuniary resources. manufactured supply, subjects us in the existing state of
It ought to be admitted, however in this as in the things, to inconvenience and loss in two Ways.
 The bulkiness of those commodities which are the One more point of view only remains in which to
chief productions of the soil, necessarily imposes very Consider the expediency of encouraging manufactures in
heavy charges on their transportation, to distant markets. the United states.
These charges, in the Cases, in which the nations, to
It is not uncommon to meet with an opinion that though
whom our products are sent, maintain a Competition in
the promoting of manufactures may be the interest of a
the supply of their own markets, principally fall upon us,
part of the Union, it is contrary to that of another part. The
and form material deductions from the primitive value
Northern and southern regions are sometimes represented
of the articles furnished. The charges on manufactured
as having adverse interests in this respect. Those are
supplies, brought from Europe are greatly enhanced
called Manufacturing, these Agricultural states; and a
by the same circumstance of distance. These charges,
species of opposition is imagined to subsist between the
again, in the cases in which our own industry maintains
Manufacturing and Agricultural interests.
no competition, in our own markets, also principally fall
upon us; and are an additional cause of extraordinary This idea of an opposition between those two interests
deduction from the primitive value of our own products; is the common error of the early periods of every
these being the materials of exchange for the foreign country, but experience gradually dissipates it. Indeed
fabrics, which we consume. they are perceived so often to succour and to befriend
each other, that they come at length to be considered as
The equality and moderation of individual property
one: a supposition which has been frequently abused
and the growing settlements of new districts, occasion in
and is not universally true. Particular encouragements of
this country an unusual demand for coarse manufactures;
particular manufactures may be of a Nature to sacrifice
The charges of which being greater in proportion to their
the interests of landholders to those of manufacturers;
greater bulk augment the disadvantage, which has been
But it is nevertheless a maxim well established by
just described.
experience, and generally acknowledged, where there
As in most countries domestic supplies maintain has been sufficient experience, that the aggregate
a very considerable competition with such foreign prosperity of manufactures, and the aggregate prosperity
productions of the soil, as are imported for sale; if the of Agriculture are intimately connected. In the Course
extensive establishment of Manufactories in the United of the discussion which has had place, various weighty
States does not create a similar competition in respect to considerations have been adduced operating in support
manufactured articles, it appears to be clearly deducible, of that maxim. Perhaps the superior steadiness of the
from the Considerations which have been mentioned, that demand of a domestic market for the surplus produce of
they must sustain a double loss in their exchanges with the soil, is alone a convincing argument of its truth.
foreign Nations; strongly conducive to an unfavorable
Ideas of a contrariety of interests between the Northern
balance of Trade, and very prejudicial to their Interests.
and southern regions of the Union, are in the Main as
These disadvantages press with no small weight, on the unfounded as they are mischievous. The diversity of
landed interest of the Country. In seasons of peace, they Circumstances on which such contrariety is usually
cause a serious deduction from the intrinsic value of the predicated, authorises a directly contrary conclusion.
products of the soil. In the time of a War, which shou’d Mutual wants constitute one of the strongest links of
either involve ourselves, or another nation, possessing a political connection, and the extent of these bears a
Considerable share of our carrying trade, the charges on natural proportion to the diversity in the means of mutual
the transportation of our commodities, bulky as most of supply.
them are, could hardly fail to prove a grievous burthen
Suggestions of an opposite complexion are ever to
to the farmer; while obliged to depend in so great degree
be deplored, as unfriendly to the steady pursuit of one
as he now does, upon foreign markets for the vent of the
great common cause, and to the perfect harmony of all
surplus of his labour.
the parts.
As far as the prosperity of the Fisheries of the United
In proportion as the mind is accustomed to trace
States is impeded by the want of an adequate market, there
the intimate connexion of interest, which subsists
arises another special reason for desiring the extension of
between all the parts of a Society united under the
manufactures. Besides the fish, which in many places,
same government—the infinite variety of channels
would be likely to make a part of the subsistence of the
which serve to Circulate the prosperity of each to and
persons employed; it is known that the oils, bones and
through the rest—in that proportion will it be little
skins of marine animals, are of extensive use in various
apt to be disturbed by solicitudes and Apprehensions
manufactures. Hence the prospect of an additional
which originate in local discriminations. It is a truth as
demand for the produce of the Fisheries.
important as it is agreeable, and one to which it is not
easy to imagine exceptions, that every thing tending to the principal of the purchased debt.
establish substantial and permanent order, in the affairs
This useful employment too ought to be of a Nature
of a Country, to increase the total mass of industry and
to produce solid and permanent improvements. If the
opulence, is ultimately beneficial to every part of it. On
money merely serves to give a temporary spring to
the Credit of this great truth, an acquiescence may safely
foreign commerce; as it cannot procure new and lasting
be accorded, from every quarter, to all institutions and
outlets for the products of the Country; there will be no
arrangements, which promise a confirmation of public
real or durable advantage gained. As far as it shall find
order, and an augmentation of National Resource.
its way in Agricultural ameliorations, in opening canals,
But there are more particular considerations which and in similar improvements, it will be productive of
serve to fortify the idea, that the encouragement of substantial utility. But there is reason to doubt, whether
manufactures is the interest of all parts of the Union. If in such channels it is likely to find sufficient employment,
the Northern and middle states should be the principal and still more whether many of those who possess it,
scenes of such establishments, they would immediately would be as readily attracted to objects of this nature,
benefit the more southern, by creating a demand for as to manufacturing pursuits; which bear greater analogy
productions; some of which they have in common with to those to which they are accustomed, and to the spirit
the other states, and others of which are either peculiar generated by them.
to them, or more abundant, or of better quality, than
To open the one field, as well as the other, will at
elsewhere. These productions, principally are Timber,
least secure a better prospect of useful employment, for
flax, Hemp, Cotton, Wool, raw silk, Indigo, iron, lead,
whatever accession of money, there has been or may be.
furs, hides, skins and coals. Of these articles Cotton and
Indigo are peculiar to the southern states; as are hitherto There is at the present juncture a certain fermentation
Lead and Coal. Flax and Hemp are or may be raised in of mind, a certain activity of speculation and enterprise
greater abundance there, than in the More Northern states; which if properly directed may be made subservient to
and the Wool of Virginia is said to be of better quality useful purposes; but which if left entirely to itself, may
than that of any other state: a Circumstance rendered the be attended with pernicious effects.
more probable by the reflection that Virginia embraces The disturbed state of Europe, inclining its citizens
the same latitudes with the finest Wool Countries of to emigration, the requisite workmen, will be more
Europe. The Climate of the south is also better adapted easily acquired, than at another time; and the effect of
to the production of silk. multiplying the opportunities of employment to those
The extensive cultivation of Cotton can perhaps who emigrate, may be an increase of the number and
hardly be expected, but from the previous establishment extent of valuable acquisitions to the population arts and
of domestic Manufactories of the Article; and the surest industry of the Country.
encouragement and vent, for the others, would result To find pleasure in the calamities of other nations,
from similar establishments in respect to them. would be criminal; but to benefit ourselves, by opening
If then, it satisfactorily appears, that it is the Interest of an asylum to those who suffer, in consequence of them,
the United states, generally, to encourage manufactures, is as justifiable as it is politic.
it merits particular attention, that there are circumstances, A full view having now been taken of the inducements
which Render the present a critical moment for entering to the promotion of Manufactures in the United states,
with Zeal upon the important business. The effort cannot accompanied with an examination of the principal
fail to be materially seconded by a considerable and objections which are commonly urged in opposition, it is
encreasing influx of money, in consequence of foreign proper in the next place, to consider the means, by which
speculations in the funds—and by the disorders, which it may be effected, as introductory to a Specification of
exist in different parts of Europe. the objects which in the present state of things appear the
The first circumstance not only facilitates the execution most fit to be encouraged, and of the particular measures
of manufacturing enterprises; but it indicates them as which it may be adviseable to adopt, in respect to each.
a necessary mean to turn the thing itself to advantage, In order to a better judgment of the Means proper to be
and to prevent its being eventually an evil. If useful resorted to by the United states, it will be of use to Advert
employment be not found for the Money of foreigners to those which have been employed with success in other
brought to the country to be invested in purchases of Countries. The principal of these are:
the public debt, it will quickly be reexported to defray
the expence of an extraordinary consumption of foreign I. Protecting duties—or duties on those foreign articles
luxuries; and distressing drains of our specie may which are the rivals of the domestic ones, intended to be
hereafter be experienced to pay the interest and redeem encouraged.
 Duties of this Nature evidently amount to a virtual there is so much room for nice and difficult combinations,
bounty on the domestic fabrics since by enhancing the in which such opposite considerations combat each other,
charges on foreign Articles, they enable the National prudence seems to dictate, that the expedient in question,
Manufacturers to undersell all their foreign Competitors. ought to be indulged with a sparing hand.
The propriety of this species of encouragement need
IV. Pecuniary bounties.
not be dwelt upon; as it is not only a clear result from
the numerous topics which have been suggested, but is This has been found one of the most efficacious means
sanctioned by the laws of the United States in a variety of of encouraging manufactures, and it is in some views, the
instances; it has the additional recommendation of being best. Though it has not yet been practiced upon by the
a resource of revenue. Indeed all the duties imposed Government of the United States (unless the allowances
on imported articles, though with an exclusive view to on the exportation of dried and pickled Fish and salted
Revenue, have the effect in Contemplation, and except meat could be considered as a bounty) and though it is
where they fall on raw materials wear a beneficent aspect less favored by public opinion than some other modes.
towards the manufactures of the Country. Its advantages, are these—
II. Prohibitions of rival articles or duties equivalent 1. It is a species of encouragement more positive
to prohibitions. and direct than any other, and for that very reason, has
a more immediate tendency to stimulate and uphold
This is another and an efficacious mean of encouraging
new enterprises, increasing the chances of profit, and
national manufactures, but in general it is only fit to be
diminishing the risks of loss, in the first attempts.
employed when a manufacture, has made such a progress
and is in so many hands as to insure a due competition, 2. It avoids the inconvenience of a temporary
and an adequate supply on reasonable terms. Of duties augmentation of price, which is incident to some other
equivalent to prohibitions, there are examples in the modes, or it produces it to a less degree; either by making
Laws of the United States, and there are other Cases to no addition to the charges on the rival foreign article, as
which the principle may be advantageously extended, but in the Case of protecting duties, or by making a smaller
they are not numerous. addition. The first happens when the fund for the bounty
is derived from a different object (which may or may not
Considering a monopoly of the domestic market
increase the price of some other article, according to the
to its own manufacturers as the reigning policy of
nature of that object) the second, when the fund is derived
manufacturing Nations, a similar policy on the part of
from the same or a similar object of foreign manufacture.
the United States in every proper instance, is dictated,
One per cent duty on the foreign article converted into a
it might almost be said, by the principles of distributive
bounty on the domestic, will have an equal effect with a
justice; certainly by the duty of endeavouring to secure to
duty of two per Cent, exclusive of such bounty; and the
their own Citizens a reciprocity of advantages.
price of the foreign commodity is liable to be raised, in
III. Prohibitions of the exportation of the materials of the one Case, in the proportion of 1 per Cent; in the other,
manufactures. in that of two per Cent. Indeed the bounty when drawn
from another source is calculated to promote a reduction
The desire of securing a cheap and plentiful supply
of price, because without laying any new charge on the
for the national workmen, and, where the article is either
foreign article, it serves to introduce a competition with
peculiar to the Country, or of peculiar quality there, the
it, and to increase the total quantity of the article in the
jealousy of enabling foreign workmen to rival those of
Market.
the nation, with its own Materials, are the leading motives
to this species of regulation. It ought not to be affirmed, 3. Bounties have not like high protecting duties, a
that it is no instance proper, but it is certainly one which tendency to produce scarcity. An increase of price is
ought to be adopted with great circumspection and only not always the immediate, though, where the progress
in very plain Cases. It is seen at once, that its immediate of a domestic Manufacture does not counteract a rise,
operation, is to abridge the demand and keep down the it is commonly the ultimate effect of an additional
price of the produce of some other branch of industry, duty. In the interval, between the laying of the duty
generally speaking, of Agriculture, to the prejudice and a proportional increase of price, it may discourage
of those, who carry it on; and though if it be really importation, by interfering with the profits to be expected
essential to the prosperity of any very important national from the sale of the article.
Manufacture, it may happen that those who are injured
4. Bounties are sometimes not only the best, but
in the first instance, may be eventually indemnified, by
the only proper expedient, for uniting the encouragement
the superior steadiness of an extensive domestic market,
of a new object of agriculture, with that of a new
depending on that prosperity: yet in a matter, in which
object of manufacture. It is the Interest of the farmer
to have the production of the raw material promoted, by policy: Because a presumption would arise in every such
counteracting the interference of the foreign material of Case, that there were natural and inherent impediments to
the same kind. It is the interest of the manufacturer to success. But in new undertakings, they are as justifiable,
have the material abundant and cheap. If prior to the as they are oftentimes necessary.
domestic production of the Material, in sufficient quantity,
There is a degree of prejudice against bounties from
to supply the manufacturer on good terms; a duty be laid
an appearance of giving away the public money, without
upon the importation of it from abroad, with a view to
an immediate consideration, and from a supposition, that
promote the raising of it at home, the Interests both of the
they serve to enrich particular classes, at the expence of
Farmer and Manufacturer will be disserved. By either
the Community.
destroying the requisite supply, or raising the price of the
article, beyond what can be afforded to be given for it, by But neither of these sources of dislike will bear a
the Conductor of an infant manufacture, it is abandoned serious examination. There is no purpose, to which
or fails; and there being no domestic manufactories to public money can be more beneficially applied, than to
create a demand for the raw material, which is raised by the acquisition of a new and useful branch of industry; no
the farmer, it is in vain, that the Competition of the like Consideration more valuable than a permanent addition
foreign article may have been destroyed. to the general stock of productive labour.
It cannot escape notice, that a duty upon the importation As to the second source of objection, it equally
of an article can no otherwise aid the domestic production lies against other modes of encouragement, which
of it, than giving the latter greater advantages in the home are admitted to be eligible. As often as a duty upon a
market. It can have no influence upon the advantageous foreign article makes an addition to its price, it causes an
sale of the article produced, in foreign markets; no extra expence to the Community, for the benefit of the
tendency, therefore to promote its exportation. domestic manufacturer. A bounty does no more: But it
is the Interest of the society in each case, to submit to a
The true way to conciliate these two interests, is to
temporary expence, which is more than compensated, by
lay a duty on foreign manufactures of the material, the
an increase of industry and Wealth, by an augmentation
growth of which is desired to be encouraged, and to
of resources and independence; and by the circumstance
apply the produce of that duty by way of bounty, either
of eventual cheapness, which has been noticed in another
upon the production of the material itself or upon its
place.
manufacture at home or upon both. In this disposition
of the thing, the Manufacturer commences his enterprise It would deserve attention, however, in the employment
under every advantage, which is attainable, as to quantity of this species of encouragement in the United states, as
or price, of the raw material: And the Farmer if the a reason for moderating the degree of it in the instances,
bounty be immediately to him, is enabled by it to enter in which it might be deemed eligible, that the great
into a successful competition with the foreign material; distance of this country from Europe imposes very
if the bounty be to the manufacturer on so much of heavy charges on all the fabrics which are brought from
the domestic material as he consumes, the operation is thence, amounting from 15 to 30 Per Cent on their value,
nearly the same; he has a motive of interest to prefer the according to their bulk.
domestic Commodity, if of equal quality, even at a higher A Question has been made concerning the
price than the foreign, so long as the difference of price Constitutional right of the Government of the United
is any thing short of the bounty which is allowed upon States to apply this species of encouragement, but there
the article. is certainly no good foundation for such a question. The
Except the stable and ordinary kinds of household National Legislature has express authority “To lay and
Manufactures, or those for which there are very Collect taxes, duties, imposts and excises, to pay the
commanding local advantages, pecuniary bounties are debts and provide for the Common defence and general
in most cases indispensable to the introduction of a new welfare” with no other qualifications than that “all duties,
branch. A stimulus and a support not less powerful and imposts and excises, shall be uniform throughout the
direct is generally speaking essential to the overcoming United States, that no capitation or other direct tax shall
of the obstacles which arise from the Competitions of be laid unless in proportion to numbers ascertained by a
superior skill and maturity elsewhere. Bounties are census or enumeration taken on the principles prescribed
especially essential, in regard to articles, upon which in the Constitution,” and that “no tax or duty shall be
those foreigners, who have been accustomed to supply a laid on articles exported from any state.” These three
Country, are in the practice of granting them. qualifications excepted, the power to raise money is
plenary, and indefinite; and the objects to which it may
The continuance of bounties on manufactures long
be appropriated are no less comprehensive, than the
established must almost always be of questionable
payment of the public debts and the providing for the the encouragement of Agriculture Arts manufactures
common defence and “general Welfare.” The terms and Commerce; and though they are for the most part
“general Welfare” were doubtless intended to signify voluntary associations, with comparatively slender funds,
more than was expressed or imported in those which their utility has been immense. Much has been done by
Preceded; otherwise numerous exigencies incident to this mean in great Britain: Scotland in particular owes
the affairs of a Nation would have been left without a materially to it a prodigious amelioration of Condition.
provision. The phrase is as comprehensive as any that From a similar establishment in the United states,
could have been used; because it was not fit that the supplied and supported by the Government of the Union,
constitutional authority of the Union, to appropriate its vast benefits might reasonably be expected. Some further
revenues shou’d have been restricted within narrower ideas on this head, shall accordingly be submitted, in the
limits than the “General Welfare” and because this conclusion of this report.
necessarily embraces a vast variety of particulars, which
VI. The Exemption of the Materials of manufactures
are susceptible neither of specification nor of definition.
from duty.
It is therefore of necessity left to the discretion of
The policy of that Exemption as a general rule,
the National Legislature, to pronounce, upon the objects,
particularly in reference to new Establishments, is
which concern the general Welfare, and for which under
obvious. It can hardly ever be adviseable to add the
that description, an appropriation of money is requisite
obstructions of fiscal burthens to the difficulties which
and proper. And there seems to be no room for a doubt
naturally embarrass a new manufacture; and where it is
that whatever concerns the general Interests of learning
matured and in condition to become an object of revenue,
of Agriculture, of Manufactures, and of Commerce are
it is generally speaking better that the fabric, than the
within the sphere of the national Councils as far as
Material should be the subject of Taxation. Ideas of
regards an application of Money.
proportion between the quantum of the tax and the value
The only qualification of the generallity of the Phrase of the article, can be more easily adjusted, in the former,
in question, which seems to be admissible, is this—That than in the latter case. An argument for exemptions of
the object to which an appropriation of money is to be this kind in the United States, is to be derived from the
made be General and not local; its operation extending practice, as far as their necessities have permitted, of
in fact, or by possibility, throughout the Union, and not those nations whom we are to meet as competitors in our
being confined to a particular spot. own and in foreign Markets.
No objection ought to arise to this construction from There are however exceptions to it; of which some
a supposition that it would imply a power to do whatever examples will be given under the next head.
else should appear to Congress conducive to the General
The Laws of the Union afford instances of the
Welfare. A power to appropriate money with this latitude
observance of the policy here recommended, but it will
which is granted too in express terms would not carry
probably be found adviseable to extend it to some other
a power to do any other thing, not authorised in the
Cases. Of a nature, bearing some affinity to that policy
constitution, either expressly or by fair implication.
is the regulation which exempts from duty the tools and
V. Premiums. implements, as well as the books, cloths and household
furniture of foreign artists, who come to reside in the
These are of a Nature allied to bounties, though
United states; an advantage already secured to them by
distinguishable from them, in some important features.
the Laws of the Union, and which, it is in every view,
Bounties are applicable to the whole quantity of an proper to Continue.
article produced, or manufactured, or exported, and
VII. Drawbacks of the duties which are imposed on
involve a correspondent expence. Premiums serve to
the Materials of Manufactures.
reward some particular excellence or superiority, some
extraordinary exertion or skill, and are dispensed only in It has already been observed as a general rule that
a small number of cases. But their effect is to stimulate duties on those materials, ought with certain exceptions
general effort. Contrived so as to be both honorary and to be foreborne. Of these exceptions, three cases occur,
lucrative, they address themselves to different passions; which may serve as examples one—where the material
touching the chords as well of emulation as of Interest. is itself, an object of general or extensive consumption,
They are accordingly a very economical mean of exciting and a fit and productive source of revenue: Another,
the enterprise of a Whole Community. where a manufacture or a simpler kind (the competition
of which with a like domestic article is desired to be
There are various Societies in different countries,
restrained,) partakes of the Nature of a raw material,
whose object is the dispensation of Premiums for
from being capable, by a further process to be converted
into a manufacture of a different kind, the introduction of the National Government to the good, which might
or growth of which is desired to be encouraged; a third be done, is not without a question. Many aids might be
where the Material itself is a production of the Country, given to industry; many internal improvements of primary
and in sufficient abundance to furnish cheap and plentiful magnitude might be promoted, by an authority operating
supply to the national Manufacturer. throughout the Union, which cannot be effected, as well,
if at all, by an authority confined within the limits of a
Under the first description comes the article of
single state.
Molasses. It is not only a fair object of revenue; but
being a sweet, it is just that the consumers of it should But if the legislature of the Union cannot do all the
pay a duty as well as the Consumers of sugar. good, that might be wished, it is at least desirable, that all
may be done, which is practicable. Means for promoting
Cottons and linens in their White state fall under the
the introduction of foreign improvements, though less
second description. A duty upon such as are imported is
efficaciously than might be accomplished with more
proper to promote the domestic Manufacture of similar
adequate authority, will form a part of the plan intended
articles in the same state. A Drawback of that duty is
to be submitted in the close of this report.
proper to encourage the printing and staining at home of
those which are brought from abroad: When the first of It is customary with manufacturing nations to prohibit,
these manufactures has attained suffcient maturity in a under severe penalties, the exportation of implements and
Country, to furnish a full supply for the second, the utility machines, which they have either invented or improved.
of the drawback ceases. There are already objects for a similar regulation in the
United States; and others may be expected to occur from
The article of Hemp either now does or may be
time to time. The adoption of it seems to be dictated by
expected soon to exemplify the third Case, in the United
the principle of reciprocity. Greater liberality, in such
states.
respects, might better comport with the general spirit of
Where duties on the materials of manufactures are the country; but a selfish and exclusive policy in other
not laid for the purpose of preventing a competition quarters will not always permit the free indulgence of a
with some domestic production, the same reasons spirit, which would place us upon an unequal footing. As
which recommend, as a general rule, the exemption of far as prohibitions tend to prevent foreign competitors
those materials from duties, would recommend as a like from deriving the benefit of the improvements made at
General rule, the allowance of draw backs, in favor of the home, they tend to increase the advantages of those by
manufacturer. Accordingly such drawbacks are familiar whom they may have been introduced; and operate as an
in countries which systematically pursue the business encouragement to exertion.
of manufactures; which furnishes an argument for the
IX. Judicious regulations for the inspection of
observance of a similar policy in the United states; and
manufactured commodities.
the Idea has been adopted by the laws of the Union in
the instances of salt and Molasses. It is believed that it This is not among the least important of the means, by
will be found advantageous to extend it to some other which the prosperity of manufactures may be promoted.
Articles. It is indeed in many cases one of the most essential.
Contributing to prevent frauds upon consumers at home
VIII. The encouragement of new inventions and
and exporters to foreign countries—to improve the quality
discoveries, at home, and of the introduction into the
and preserve the character of the national manufactures,
United States of such as may have been made in other
it cannot fail to aid the expeditious and advantageous
countries; particularly those, which relate to machinery.
Sale of them, and to serve as a guard against successful
This is among the most useful and unexceptionable of competition from other quarters. The reputation of
the aids, which can be given to manufactures. The usual the flour and lumber of some states, and of the Pot ash
means of that encouragement are pecuniary rewards, of others has been established by an attention to this
and, for a time, exclusive privileges. The first must be point. And the like good name might be procured for
employed, according to the occasion, and the utility of those articles, wheresoever produced, by a judicious and
the invention, or discovery: For the last, so far as respects uniform system of Inspection; throughout the ports of the
“authors and inventors” provision has been made by Law. United States. A like system might also be extended with
But it is desireable in regard to improvements and secrets advantage to other commodities.
of extraordinary value, to be able to extend the same
X. The facilitating of pecuniary remittances from
benefit to Introducers, as well as Authors and Inventors; a
place to place—
policy which has been practiced with advantage in other
countries. Here, however, as in some other cases, there Is a point of considerable moment to trade in general,
is cause to regret, that the competency of the authority and to manufactures in particular; by rendering more
easy the purchase of raw materials and provisions and commodities into the old Market, they open many new
the payment for manufactured supplies. A general markets to its produce. Monopoly besides is a great enemy
circulation of Bank paper, which is to be expected from to good management, which can never be universally
the institution lately established will be a most valuable established, but in consequence of that free and universal
mean to this end. But much good would also accrue competition, which forces every body to have recourse to
from some additional provisions respecting inland bills it for the sake of self defence. It is not more than Fifty
of exchange. If those drawn in one state payable in years ago that some of the counties in the neighborhood of
another were made negotiable, everywhere, and interest London petitioned the Parliament, against the extension
and damages allowed in case of protest, it would greatly of the turnpike roads, into the remoter counties. Those
promote negotiations between the Citizens of different remoter counties, they pretended, from the cheapness of
states, by rendering them more secure; and, with it Labor, would be able to sell their grass and corn cheaper
the convenience and advantage of the Merchants and in the London Market, than themselves, and they would
manufacturers of each. thereby reduce their rents and ruin their cultivation.
Their rents however have risen and their cultivation has
XI. The facilitating of the transportation of
been improved, since that time.”
commodities.
Specimens of a spirit, similar to that which governed
Improvements favoring this object intimately concern
the counties here spoken of present themselves too
all the domestic interests of a community; but they may
frequently to the eye of an impartial observer, and render
without impropriety be mentioned as having an important
it a wish of patriotism, that the body in this Country, in
relation to manufactures. There is perhaps scarcely any
whose councils a local or partial spirit is least likely to
thing, which has been better calculated to assist the
predominate, were at liberty to pursue and promote the
manufactures of Great Britain, than the ameliorations of
general interest, in those instances, in which there might
the public roads of that Kingdom, and the great progress
be danger of the interference of such a spirit.
which has been of late made in opening canals. Of the
former, the United States stand much in need; and for the The foregoing are the principal of the means, by which
latter they present uncommon facilities. the growth of manufactures is ordinarily promoted. It
is, however, not merely necessary, that the measures of
The symptoms of attention to the improvement of
government, which have a direct view to manufactures,
inland Navigation, which have lately appeared in some
should be calculated to assist and protect them, but that
quarters, must fill with pleasure every breast warmed
those which only collaterally affect them, in the general
with a true Zeal for the prosperity of the Country. These
course of the administration, should be guarded from any
examples, it is to be hoped, will stimulate the exertions
peculiar tendency to injure them.
of the Government and the Citizens of every state. There
can certainly be no object, more worthy of the cares of the There are certain species of taxes, which are apt to
local administrations; and it were to be wished, that there be oppressive to different parts of the community, and
was no doubt of the power of the national Government to among other ill effects have a very unfriendly aspect
lend its direct aid, on a comprehensive plan. This is one towards manufactures. All Poll or Capitation taxes
of those improvements, which could be prosecuted with are of this nature. They either proceed, according to a
more efficacy by the whole, than by any part or parts of fixed rate, which operates unequally, and injuriously to
the Union. There are cases in which the general interest the industrious poor; or they vest a discretion in certain
will be in danger to be sacrificed to the collission of some officers, to make estimates and assessments which are
supposed local interests. Jealousies, in matters of this necessarily vague, conjectural and liable to abuse. They
kind, are as apt to exist, as they are apt to be erroneous. ought therefore to be abstained from, in all but cases of
distressing emergency.
The following remarks are sufficiently judicious
and pertinent to deserve a literal quotation. “Good All such taxes (including all taxes on occupations) which
roads, canals, and navigable rivers, by diminishing the proceed according to the amount of capital supposed to
expence of carriage, put the remote parts of a country be employed in a business, or of profits supposed to be
more nearly upon a level with those in the neighborhood made in it are unavoidably hurtful to industry. It is in
of the town. They are upon that account the greatest of vain, that the evil may be endeavoured to be mitigated by
all improvements. They encourage the cultivation of leaving it, in the first instance, in the option of the party
the remote, which must always be the most extensive to be taxed, to declare the amount of his capital or profits.
circle of the country. They are advantageous to the
Men engaged in any trade of business have commonly
Town by breaking down the monopoly of the country in
weighty reasons to avoid disclosures, which would
its neighborhood. They are advantageous even to that
expose, with any thing like accuracy, the real state of
part of the Country. Though they introduce some rival
their affairs. They most frequently find it better to risk special reasons, may have a claim to encouragement.
oppression, than to avail themselves of so inconvenient
A designation of the principal raw material of which
a refuge. And the consequence is, that they often suffer
each manufacture is composed will serve to introduce the
oppression.
remarks upon it. As, in the first place—
When the disclosure too, if made, is not definitive,
but controulable by the discretion, or in other words, by Iron
the passions and prejudices of the revenue officers, it is
not only an ineffectual protection, but the possibility of The manufactures of this article are entitled to
its being so is an additional reason for not resorting to it. preeminent rank. None are more essential in their kinds,
nor so extensive in their uses. They constitute in whole
Allowing to the public officers the most equitable or in part the implements or the materials or both of
dispositions; yet where they are to exercise a discretion, almost every useful occupation. Their instrumentality is
without certain data, they cannot fail to be often misled everywhere conspicuous.
by appearances. The quantity of business, which seems
to be going on, is, in a vast number of cases, a very It is fortunate for the United States that they have
deceitful criterion of the profits which are made; yet it is peculiar advantages for deriving the full benefit of this
perhaps the best they can have, and it is the one, on which most valuable material, and they have every motive to
they will most naturally rely. A business therefore which improve it, with systematic care. It is to be found in
may rather require aid, from the government, than be in various parts of the United States, in great abundance
a capacity to be contributory to it, may find itself crushed and of almost every quality; and fuel the chief instrument
by the mistaken conjectures of the Assessors of taxes. in manufacturing it, is both cheap and plenty. This
particularly applies to Charcoal; but there are productive
Arbitrary taxes, under which denomination are coal mines already in operation, and strong indications,
comprised all those, that leave the quantum of the tax that the material is to be found in abundance, in a variety
to be raised on each person, to the discretion of certain of other places.
officers, are as contrary to the genius of liberty as to the
maxims of industry. In this light, they have been viewed The inquiries to which the subject of this report has
by the most judicious observers on government; who have led have been answered with proofs that manufactories
bestowed upon them the severest epithets of reprobation; of Iron, though generally understood to be extensive, are
as constituting one of the worst features usually to be met far more so than is commonly supposed. The kinds, in
with in the practice of despotic governments. which the greatest progress has been made, have been
mentioned in another place, and need not be repeated;
It is certain at least, that such taxes are particularly but there is little doubt that every other kind, with due
inimical to the success of manufacturing industry, and cultivation, will rapidly succeed. It is worthy of remark
ought carefully to be avoided by a government, which that several of the particular trades, of which it is the
desires to promote it. basis, are capable of being carried on without the aid of
The great copiousness of the subject of this Report has large capitals.
insensibly led to a more lengthy preliminary discussion, Iron works have very greatly increased in the United
than was originally contemplated, or intended. It appeared States and are prosecuted, with much more advantage
proper to investigate principles, to consider objections, than formerly. The average price before the revolution
and to endeavour to establish the utility of the thing was about Sixty four Dollars Per Ton—at present it is
proposed to be encouraged; previous to a specification of about Eighty; a rise which is chiefly to be attributed to the
the objects which might occur, as meriting or requiring increase of manufactures of the material.
encouragement, and of the measures, which might be
proper, in respect to each. The first purpose having been The still further extension and multiplication of such
fulfilled, it remains to pursue the second. In the selection manufactures will have the double effect of promoting
of objects, five circumstances seem intitled to particular the extraction of the Metal itself, and of converting it to a
attention; the capacity of the Country to furnish the greater number of profitable purposes.
raw material—the degree in which the nature of the Those manufactures too unite in a greater degree,
manufacture admits of a substitute for manual labour in than almost any others, the several requisities, which
machinery—the facility of execution—the extensiveness have been mentioned, as proper to be consulted in the
of the uses, to which the article can be applied—its selection of objects.
subserviency to other interests, particularly the great one
of national defence. There are however objects, to which The only further encouragement of manufactories of
these circumstances are little applicable, which for some this article, the propriety of which may be considered as
unquestionable, seems to be an increase of the duties on acquired.
foreign rival commodities.
To insure the end, it seems equally safe and prudent,
Steel is a branch which has already made a considerable to extend the duty, ad valorem, upon all manufactures of
progress, and it is ascertained that some new enterprises, iron, or of which iron is the article of chief value, to ten
on a more extensive scale, have been lately set on foot. per cent.
The facility of carrying it to all extent which will supply
Fire-arms and other military weapons may, it is
all internal demands, and furnish a considerable surplus
conceived, be placed, without inconvenience, in the class
for exportation, cannot be doubted. The duty upon the
of articles rated at fifteen per cent. There are, already,
importation of this article, which is, at present, seventy-
manufactories of these articles, which only require the
five cents per cwt. may, it is conceived, be safely and
stimulus of a certain demand to render them adequate to
advantageously extended to one hundred cents. It is
the supply of the United States.
desirable, by decisive arrangements, to second the efforts
which are making in so very valuable a branch. It would, also, be a material aid to manufactures of this
nature, as well as a mean of public security, if provision
The United States already, in a great measure, supply
should be made for an annual purchase of military
themselves with nails and spikes. They are able, and ought
weapons, of home manufacture, to a certain determinate
certainly to do it, entirely. The first and most laborious
extent, in order to the formation of arsenals; and to
operation, in this manufacture, is performed by water-
replace, from time to time, such as should be drawn for
mills; and of the persons afterwards employed, a great
use, so as always to have in store the quantity of each
proportion are boys, whose early habits of industry are of
kind which should be deemed a competent supply.
importance to the community, to the present support of
their families, and to their own future comfort. It is not But it may, hereafter, deserve legislative consideration,
less curious than true, that, in certain parts of the country, whether manufactories of all the necessary weapons
the making of nails is an occasional family manufacture. of war ought not to be established, on account of the
government itself. Such establishments are agreeable
The expediency of an additional duty on these articles,
to the usual practice of nations, and that practice seems
is indicated by an important fact. About 1,800,000
founded on sufficient reason.
pounds of them were imported into the United States, in
the course of a year, ending the 30th of September, 1790. There appears to be an improvidence in leaving these
A duty of two cents per pound would, it is presumable, essential instruments of national defence to the casual
speedily put an end to so considerable an importation. speculations of individual adventure; a resource which
And it is, in every view, proper that an end should be put can less be relied upon, in this case, than in most others;
to it. the articles in question not being objects of ordinary
and indispensable private consumption or use. As a
The manufacture of these articles, like that of some
general rule, manufactories on the immediate account of
others, suffers from the carelessness and dishonesty of
government are to be avoided; but this seems to be one of
a part of those who carry it on. An inspection in certain
the few exceptions which that rule admits, depending on
cases might tend to correct the evil. It will deserve
very special reasons.
consideration whether a regulation of this sort cannot be
applied, without inconvenience, to the exportation of the Manufactures of steel, generally, or of which steel is
articles, either to foreign countries, or from one state to the article of chief value, may, with advantage, be placed
another. in the class of goods rated at seven and a half per cent.
As manufactures of this kind have not yet made any
The implements of husbandry are made in several
considerable progress, it is a reason for not rating them
states in great abundance. In many places, it is done by
as high as those of iron; but, as this material is the basis
the common blacksmiths. And there is no doubt that an
of them, and as their extension is not less practicable than
ample supply for the whole country can, with great ease,
important, it is desirable to promote it by a somewhat
be procured among ourselves.
higher duty than the present.
Various kinds of edged tools for the use of mechanics
A question arises, how far it might be expedient to
are also made; and a considerable quantity of hollow
permit the importation of iron, in pigs and bars, free from
wares, though the business of castings has not yet attained
duty. It would certainly be favorable to manufactures of
the perfection which might be wished. It is, however,
the article; but the doubt is, whether it might not interfere
improving, and as there are respectable capitals, in good
with its production.
hands, embarked in the prosecution of those branches of
iron manufactories, which are yet in their infancy, they Two circumstances, however, abate, if they do
may all be contemplated as objects not difficult to be not remove apprehension, on this score; one is, the
considerable increase of price which has been already during the late war, yielded a considerable supply for
remarked, and which renders it probable that the free military use. This is now in the hands of individuals,
admission of foreign iron would not be inconsistent with who not only carry it on with spirit, but have established
an adequate profit to the proprietors of ironworks; the other manufactories of it at Richmond, in the same state.
is the augmentation of demand which would be likely
The duties already laid upon the importation of this
to attend the increase of manufactures of the article in
article, either in its unmanufactured or manufactured
consequence of the additional encouragements proposed
state, insure it a decisive advantage in the home market—
to be given. But caution nevertheless, in a matter of this
which amounts to considerable encouragement. If the
kind, is most advisable. The measure suggested ought,
duty on pewter wares should be raised, it would afford a
perhaps, rather to be contemplated subject to the lights of
further encouragement. Nothing else occurs as proper to
further experience, than immediately adopted.
be added.

COPPER
FOSSIL COAL
The manufactures of which this article is susceptible
This, as an important instrument of manufactures, may,
are also of great extent and utility. Under this description,
without impropriety, be mentioned among the subjects of
those of brass, of which it is the principal ingredient, are
this report.
intended to be included.
A copious supply of it would be of great consequence
The material is a natural production of the country.
to the iron branch. As an article of household fuel, also,
Mines of copper have actually been wrought, and with
it is an interesting production; the utility of which must
profit to the undertakers, though it is not known that any
increase in proportion to the decrease of wood, by the
are now in this condition. And no thing is easier than
progress of settlement and cultivation. And its importance
the introduction of it from other countries on moderate
to navigation, as an immense article of transportation
terms, and in great plenty.
coast-wise, is signally exemplified in Great- Britain.
Coppersmiths and brass-founders, particularly the
It is known, that there are several coal mines in
former, are numerous in the United States; some of whom
Virginia, now worked; and appearances of their existence
carry on business to a respectable extent.
are familiar in a number of places.
To multiply and extend manufactories of the materials
The expediency of a bounty on all this species of coal
in question, is worthy of attention and effort. In order to
of home production, and of premiums on the opening of
this, it is desirable to facilitate a plentiful supply of the
new mines, under certain qualifications, appears to be
materials. And a proper mean to this end is, to place them
worthy of particular examination. The great importance
in the class of free articles. Copper in plates and brass
of the article will amply justify a reasonable expense in
are already in this predicament; but copper in pigs and
this way, if it shall appear to be necessary to, and shall be
bars is not; neither is lapis calaminaris, which, together
thought likely to answer, the end.
with copper and charcoal, constitute the component
ingredients of brass. The exemption from duty, by parity
of reason, ought to embrace all such of these articles as WOOD
are objects of importation. Several manufactures of this article flourish in the
An additional duty on brass wares, will tend to the United States. Ships are no where built in greater
general end in view. These now stand at five per cent. perfection, and cabinet-wares, generally, are made little,
while those of tin, pewter. and copper, are rated at seven if at all, inferior to those of Europe. Their extent is such
and an half. There appears to be a propriety, in every as to have admitted of considerable exportation.
view, in placing brass wares upon the same level with An exemption from duty of the several kinds of
them; and it merits consideration, whether the duty upon wood ordinarily used in these manufactures, seems to
all of them, ought not to be raised to ten per cent. be all that is requisite by way of encouragement. It is
recommended, by the consideration of a similar policy
LEAD being pursued in other countries, and by the expediency
of giving equal advantages to our own workmen in wood.
There are numerous proofs, that this material abounds
The abundance of timber proper for ship-building in the
in the United States, and requires little to unfold it to an
United States, does not appear to be any objection to it.
extent more than equal to every domestic occasion. A
The increasing scarcity, and growing importance of that
prolific mine of it has long been open in the south-western
article in the European countries, admonish the United
parts of Virginia, and under a public administration,
States to commence, and systematically to pursue,
measures for the preservation of their stock. Whatever of materials, which, if not manufactured, would be left to
may promote the regular establishment of magazines of perish. It may be placed with advantage in the class of
ship timber, is, in various views, desirable. articles paying fifteen per cent.

SKINS GRAIN
There are scarcely any manufactories of greater Manufactures of the several species of this article, have
importance, than of this article. Their direct and very a title to peculiar favour; not only because they are most
happy influence upon agriculture, by promoting the of them immediately connected with the subsistence of
raising of cattle of different kinds, is a very material the citizens, but because they enlarge the demand for the
recommendation. most precious products of the soil. Though flour may
with propriety be noticed as a manufacture of grain, it
It is pleasing, too, to observe the extensive progress
were useless to do it, but for the purpose of submitting the
they have made in their principal branches; which are
expediency of a general system of inspection throughout
so far matured as almost to defy foreign competition.
the ports of the United States; which, if established upon
Tanneries, in particular, are not only carried on as a
proper principles, would be likely to improve the quality
regular business, in numerous instances, and in various
of our flour every where, and to raise its reputation in
parts of the country, but they constitute, in some places, a
foreign markets. There, are, however, considerations
valuable item of incidental family manufactures.
which stand in the way of such an arrangement.
Representations, however, have been made, importing
Ardent spirits and malt liquors are, next to flour, the
the expediency of further encouragement to the leather
two principal manufactures of grain. The first has made
branch, in two ways; one, by increasing the duty on the
a very extensive, the last a considerable progress in the
manufactures of it, which are imported; the other, by
United States. In respect to both, an exclusive possession
prohibiting the exportation of bark. In support of the latter
of the home market ought to be secured to the domestic
it is alleged, that the price of bark, chiefly in consequence
manufacturers, as fast as circumstances will admit.
of large exportations, has risen, within a few years, from
Nothing is more practicable, and nothing more desirable.
about three dollars, to four and an half per cord.
The existing laws of the United States have done much
These suggestions are submitted rather as intimations
towards attaining this valuable object; but some additions
which merit considerations, than as matters, the propriety
to the present duties on foreign distilled spirits, and
of which is manifest. It is not clear, that an increase of
foreign malt liquors, and, perhaps, an abatement of those
duty is necessary; and in regard to the prohibition desired,
on home-made spirits, would more effectually secure it;
there is no evidence of any considerable exportation
and there does not occur any very weighty objection to
hitherto; and it is most probable, that whatever
either.
augmentation of price may have taken place, is to be
attributed to an extension of the home demand from the An augmentation of the duties on imported spirits,
increase of manufactures, and to a decrease of the supply, would favour, as well the distillation of spirits from
in consequence of the progress of settlement, rather than molasses, as that from grain. And to secure to the nation
to the quantities which have been exported. the benefit of a manufacture, even of foreign materials, is
always of great, though perhaps of secondary importance.
It is mentioned, however, as an additional reason
for the prohibition, that one species of the bark usually A strong impression prevails in the minds of those
exported, is in some sort peculiar to the country; and the concerned in distilleries, (including, too, the most candid
material of a very valuable dye, of great use in some other and enlightened,) that greater differences in the rates
manufactures in which the United States have begun a of duty on foreign and domestic spirits, are necessary
competition. completely to secure the successful manufacture of the
latter; and there are facts which entitle this impression to
There may also be this argument in favour of an increase
attention.
of duty. The object is of importance enough to claim
decisive encouragement; and the progress which has been It is known, that the price of molasses, for some years
made, leaves no room to apprehend any inconvenience past, has been successively rising in the West-India
on the score of supply from such an increase. markets, owing partly to a competition which did not
formerly exist, and partly to an extension of demand in
It would be of benefit to this branch, if glue, which
this country; and it is evident, that the late disturbances in
is now rated at five per cent, were made the object of an
those Islands, from which we draw our principal supply,
excluding duty. It is already made in large quantities at
must so far interfere with the production of the article,
various tanneries; and, like paper, is an entire economy
as to occasion a material enhancement of price. The be accelerated by measures tending to invite a greater
destruction and devastation attendant on the insurrection capital into this channel of employment.
in Hispaniola in particular, must not only contribute very
To render the encouragement of domestic breweries
much to that effect, but may be expected to give it some
decisive, it may be adviseable to substitute to the present
duration. These circumstances, and the duty of three
rates of duty, eight cents per gallon generally; and it will
cents per gallon on molasses, may render it difficult for
deserve to be considered as a guard against invasions,
the distillers of that material to maintain, with adequate
whether there ought not to be a prohibition of their
profit, a competition with the rum brought from the West-
importation, except in casks of considerable capacity. It
Indies, the quality of which is so considerably superior.
is to be hoped, that such a duty would banish from the
The consumption of Geneva, or gin, in this country, market foreign malt liquors of inferior quality; and that
is extensive. It is not long since distilleries of it have the best kind only would continue to be imported, till it
grown up among us, to any importance. They are now should be supplanted by the efforts of equal skill or care
becoming of consequence, but being still in their infancy, at home.
they require protection.
Till that period, the importation so qualified, would be
It is represented, that the price of some of the materials an useful stimulus to improvement; and in the mean time,
is greater here than in Holland, from which place large the payment of the increased price for the enjoyment of
quantities are brought—the price of labour considerably a luxury, in order to the encouragement of a most useful
greater—the capitals engaged in the business there, much branch of domestic industry, could not reasonably be
larger than those which are employed here—the rate of deemed a hardship.
profits, at which the undertakers can afford to carry it
As a further aid to manufactures of grain, though upon
on, much less—the prejudices in favour of imported gin,
a smaller scale, the articles of starch, hair-powder, and
strong.
wafers, may with great propriety be placed among those
These circumstances are alleged, to outweigh the which are rated at fifteen per cent. No manufactures are
charges which attend the bringing of the article from more simple, nor more completely within the reach of a
Europe to the United States, and the present difference of full supply from domestic sources; and it is a policy, as
duty, so as to obstruct the prosecution of the manufacture common as it is obvious, to make them the objects either
with due advantage. of prohibitory duties, or of express prohibition.
Experiment could, perhaps, alone decide with certainty
the justness of the suggestions which are made; but in FLAX AND HEMP
relation to branches of manufacture so important, it Manufactures of these articles have so much affinity
would seem inexpedient to hazard an unfavourable issue, to each other, and they are so often blended, that they
and better to err on the side of too great, than of too small, may with advantage be considered in conjunction.
a difference in the particular in question. The importance of the linen branch to agriculture—its
It is, therefore, submitted, that an addition of two precious effects upon household industry—the ease with
cents per gallon be made to the duty on imported spirits which the materials can be produced at home to any
of the first class of proof, with a proportionable increase requisite extent—the great advances which have been
on those of higher proof; and that a deduction of one already made in the coarser fabrics of them, especially in
cent. per gallon be made from the duty on spirits distilled the family way, constitute claims of peculiar force to the
within the United States, beginning with the first class of patronage of government.
proof, and a proportionable deduction from the duty on This patronage may be afforded in various ways by
those of higher proof. promoting the growth of the materials; by increasing the
It is ascertained, that by far the greatest part of the impediments to an advantageous competition of rival
malt liquors consumed in the United States, are the foreign articles; by direct bounties or premiums upon the
produce of domestic breweries. It is desirable, and, in all home manufacture.
likelihood, attainable, that the whole consumption should First. As to promoting the growth of the materials.
be supplied by ourselves.
In respect to hemp, something has been already done
The malt liquors made at home, though inferior to by the high duty upon foreign hemp. If the facilities
the best, are equal to a great part of those which have for domestic production were not unusually great, the
been usually imported. The progress already made, is policy of the duty on the foreign raw material, would be
an earnest of what may be accomplished. The growing highly questionable, as interfering with the growth of
competition is an assurance of improvement. This will manufactures of it. But making the proper allowances
for those facilities, and with an eye to the future and manufactured articles.
natural progress of the country, the measure does not
To afford more effectual encouragement to the
appear, upon the whole, exceptionable.
manufacture, and at the same time to promote the
A strong wish naturally suggests itself, that some cheapness of the article for the benefit of navigation, it
method could be devised, of affording a more direct will be of great use to allow a bounty of two cents per yard
encouragement to the growth both of flax and hemp; such on all sail-cloth which is made in the United States from
as would be effectual, and at the same time not attended materials of their own growth. This would also assist
with too great inconveniences. To this end, bounties the culture of those materials. An encouragement of this
and premiums offer themselves to consideration; but no kind, if adopted, ought to be established for a moderate
modification of them has yet occurred, which would not term of years, to invite to new undertakings, and to an
either hazard too much expense, or operate unequally in extension of the old. This is an article of importance
reference to the circumstances of different parts of the enough to warrant the employment of extraordinary
Union; and which would not be attended with very great means in its favour.
difficulties in the execution.
Secondly. As to increasing the impediments to an COTTON
advantageous competition of rival foreign articles. There is something in the texture of this material
To this purpose, an augmentation of the duties on which adapts it in a peculiar degree to the application
importation is the obvious expedient; which, in regard to of machines. The signal utility of the mill for spinning
certain articles, appears to be recommended by sufficient of cotton, not long since invented in England, has been
reasons. noticed in another place; but there are other machines
scarcely inferior in utility, which, in the different
The principal of these articles is sail-cloth; one
manufactories of this article, are employed either
intimately connected with navigation and defence; and of
exclusively, or with more than ordinary effect. This
which a flourishing manufactory is established at Boston,
very important circumstance recommends the fabrics
and very promising ones at several other places.
of cotton, in a more particular manner, to a country in
It is presumed to be both safe and adviseable to place which a defect of hands constitutes the greatest obstacle
this in the class of articles rated at 10 per cent. A strong to success.
reason for it results from the consideration that a bounty
The variety and extent of the uses to which the
of two pence sterling per ell is allowed in Great-Britain,
manufactures of this article are applicable, is an other
upon the exportation of the sail-cloth manufactured in
powerful argument in their favour.
that kingdom.
And the faculty of the United States to produce the raw
It would likewise appear to be good policy to raise
material in abundance, and of a quality which, though
the duty to seven and an half per cent. on the following
alleged to be inferior to some that is produced in other
articles.—Drillings, osnaburgh, ticklenburghs, dowlas,
quarters, is, nevertheless, capable of being used with
canvass, brown rolls, bagging, and upon all other linens,
advantage in many fabrics, and is probably susceptible
the first cost of which at the place of exportation does not
of being carried, by a more experienced culture, to much
exceed 35 cents per yard. A bounty of 12 1/2 per cent.
greater perfection, suggests an additional and a very
upon an average, on the exportation of such or similar
cogent inducement to the vigorous pursuit of the cotton
linens from Great-Britain, encourages the manufacture
branch, in its several subdivisions.
of them in that country, and increases the obstacles to a
successful competition in the countries to which they are How much has been already done, has been stated in
sent. a preceding part of this report.
The quantities of tow and other household linens In addition to this, it may be announced, that a society
manufactured in different parts of the United States, is forming with a capital which is expected to be extended
and the expectations which are derived from some late to at least half a million of dollars; on behalf of which,
experiments, of being able to extend the use of labour- measures are already in train for prosecuting, on a large
saving machines in the coarser fabrics of linen, obviate scale, the making and printing of cotton goods.
the danger of inconvenience from an increase of the duty These circumstances conspire to indicate the expediency
upon such articles, and authorize a hope of speedy and of removing any obstructions which may happen to exist
complete success to the endeavours which may be used to the advantageous prosecution of the manufactories in
for procuring an internal supply. question, and of adding such encouragements as may
Thirdly. As to direct bounties or premiums upon the appear necessary and proper.
 The present duty of three cents per pound on the foreign not exceeding a certain value, applies also to certain
raw material, is undoubtedly a very serious impediment descriptions of cotton goods of similar value.
to the progress of those manufactories.
This furnishes an additional argument for allowing to
The injurious tendency of similar duties, either prior the national manufacturers the species of encouragement
to the establishment, or in the infancy of the domestic just suggested, and indeed for adding some other aid.
manufacture of the article, as it regards the manufacture;
One cent per yard, not less than of a given width, on
and their worse than inutility, in relation to the home
all goods of cotton, or of cotton and linen mixed, which
production of the material itself, have been anticipated,
are manufactured in the United States, with the addition
particularly in discussing the subject of pecuniary
of one cent per pound weight of the material, if made of
bounties.
national cotton, would amount to an aid of considerable
Cotton has not the same pretensions with hemp to importance, both to the production and to the manufacture
form an exception to the general rule. of that valuable article. And it is conceived, that the
expense would be well justified by the magnitude of the
Not being, like hemp, an universal production of
object.
the country, it affords less assurance of an adequate
internal supply; but the chief objection arises from the The printing and staining of cotton goods, is known to
doubts which are entertained concerning the quality of be a distinct business from the fabrication of them. It is
the national cotton. It is alleged, that the fibre of it is one easily accomplished, and which, as it adds materially
considerably shorter and weaker than that of some other to the value of the article in its white state, and prepares it
places; and it has been observed as a general rule, that the for a variety of new uses, is of importance to be promoted.
nearer the place of growth to the equator, the better the
As imported cottons, equally with those which are
quality of the cotton. That which comes from Cayenne,
made at home, may be the objects of this manufacture,
Surrinam, and Demarara, is said to be preferable, even at
it will merit consideration, whether the whole, or a
a material difference of price, to the cotton of the islands.
part of the duty, on the white goods, ought not to be
While a hope may reasonably be indulged, that with allowed to be drawn back in favour of those who print
due care and attention, the national cotton may be made or stain them. This measure would certainly operate as
to approach nearer than it now does to that of regions a powerful encouragement to the business; and though it
somewhat more favoured by climate; and while facts may in a degree counteract the original fabrication of the
authorize an opinion, that very great use may be made articles, it would probably more than compensate for this
of it, and that it is a resource which gives greater security disadvantage in the rapid growth of a collateral branch
to the cotton fabrics of this country, than can be enjoyed which is of a nature sooner to attain to maturity. When
by any which depends wholly on external supply, it a sufficient progress shall have been made, the drawback
will certainly be wise in every view, to let our infant may be abrogated, and by that time the domestic supply
manufactures have the full benefit of the best materials of the articles to be printed or stained, will have been
on the cheapest terms. It is obvious that the necessity of extended.
having such materials, is proportioned to the unskilfulness
If the duty of seven and an half per cent. on certain kinds
and inexperience of the workmen employed, who, if
of cotton goods were extended to all goods of cotton, or of
inexpert, will not fail to commit great waste, where the
which it is the principal material, it would probably more
materials they are to work with are of an indifferent kind.
than counterbalance the effect of the drawback proposed
To secure to the national manufacturers so essential in relation to the fabrication of the article. And no material
an advantage, a repeal of the present duty on imported objection occurs to such an extension. The duty, then,
cotton is indispensable. considering all the circumstances which attend goods
of this description, could not be deemed inconveniently
A substitute for this, far more encouraging to domestic
high; and it may be inferred from various causes that the
production, will be to grant a bounty on the national
prices of them would still continue moderate.
cotton, when wrought at a home manufactory; to which a
bounty on the exportation of it may be added. Either, or Manufactories of cotton goods not long since
both, would do much more towards promoting the growth established at Beverly in Massachusetts, and at
of the article, than the merely nominal encouragement, Providence, in the state of Rhode-Island, and conducted
which it is proposed to abolish. The first would also have with a perseverance corresponding with the patriotic
a direct influence in encouraging the manufacture. motives which began them, seem to have overcome the
first obstacles to success; producing corderoys, velverets,
The bounty which has been mentioned as existing
fustians, jeans, and other similar articles, of a quality
in Great-Britain upon the exportation of coarse linens
which will bear a comparison with the like articles
brought from Manchester. The one at Providence has wool be capable of such a degree of improvement, as to
the merit of being the first in introducing into the United render it fit for the finer fabrics.
States the celebrated cotton mill; which not only furnishes
Premiums would probably be found the best means of
materials for that manufactory itself, but for the supply of
promoting the domestic, and bounties the foreign supply.
private families for household manufacture.
The first may be within the compass of the institution
Other manufactories of the same material, as regular hereafter to be submitted; the last would require a specific
businesses, have also been begun at different places in legislative provision. If any bounties are granted, they
the state of Connecticut, but all upon a smaller scale than ought, of course, to be adjusted with an eye to quality as
those above mentioned. Some essays are also making well as quantity.
in the printing and staining of cotton goods. There are
A fund for this purpose may be derived from the
several small establishments of this kind already on foot.
addition of two and an half per cent. to the present rate
of duty on carpels and carpeting; an increase, to which
WOOL the nature of the articles suggests no objection, and
In a country, the climate of which partakes of so which may at the same time furnish a motive the more
considerable a proportion of winter as that of a great to the fabrication of them at home; towards which some
part of the United States, the woollen branch cannot be beginnings have been made.
regarded as inferior to any which relates to the clothing
of the inhabitants. SILK
Household manufactures of this material are carried on The production of this article is attended with great
in different parts of the United States to a very interesting facility in most parts of the United States. Some pleasing
extent; but there is only one branch which, as a regular essays are making in Connecticut, as well towards that, as
business, can be said to have acquired maturity. This is towards the manufacture of what is produced. Stockings,
the making of hats. handkerchiefs, ribbons, and buttons, are made, though as
yet but in small quantities.
Hats of wool, and of wool mixed with fur, are made
in large quantities in different states; and no thing seems A manufactory of lace, upon a scale not very extensive,
wanting but an adequate supply of materials to render the has been long memorable at Ipswich, in the state of
manufacture commensurate with the demand. Massachusetts.
A promising essay towards the fabrication of cloths, An exemption of the material from the duty which
cassimeres, and other woollen goods, is likewise going on it now pays on importation, and premiums upon the
at Hartford, in Connecticut. Specimens of the different production, to be dispensed under the direction of the
kinds which are made, in the possession of the Secretary, institution before alluded to, seem to be the only species
evince that these fabrics have attained a very considerable of encouragement adviseable at so early a stage of the
degree of perfection. Their quality certainly surpasses thing.
any thing that could have been looked for in so short a
time, and under so great disadvantages; and conspires GLASS
with the scantiness of the means, which have been at the
command of the directors, to form the eulogium of that The materials for making glass are found every where.
public spirit, perseverance, and judgment, which have In the United States there is no deficiency of them. The
been able to accomplish so much. sands and stones called Tarso, which include flinty
and chrystalline substances generally, and the salts of
To cherish and bring to maturity this precious embryo, various plants, particularly of the sea-weed kali, or kelp,
must engage the most ardent wishes, and proportionable constitute the essential ingredients. An extraordinary
regret, as far as the means of doing it may appear difficult abundance of fuel, is a particular advantage enjoyed
or uncertain. by this country for such manufactures. They, however,
Measures which should tend to promote an abundant require large capitals, and involve much manual labour.
supply of wool of good quality, would probably afford the Different manufactories of glass are now on foot in
most efficacious aid that present circumstances permit. the United States. The present duty of twelve and an half
To encourage the raising and improving the breed per cent. on all imported articles of glass, amount to a
of sheep at home, would certainly be the most desirable considerable encouragement to those manufactories. If
expedient for that purpose; but it may not be alone any thing in addition is judged eligible, the most proper
sufficient, especially as it is yet a problem, whether our would appear to be a direct bounty on window-glass and
black bottles.
 The first recommends itself as an object of general schools, and other seminaries of learning. But the
convenience; the last adds to that character, the difference it is conceived would be without effect.
circumstance of being an important item in breweries. A
As to books which usually fill the libraries of the
complaint is made of great deficiency in this respect.
wealthier classes, and of professional men, such an
augmentation of prices, as might be occasioned by an
GUN-POWDER additional duty of five per cent. would be too little felt to
No small progress has been of late made in the be an impediment to the acquisition.
manufacture of this very important article. It may, And with regard to books which may be specially
indeed, be considered as already established; but its high imported for the use of particular seminaries of learning,
importance renders its further extension very desirable. and of public libraries, a total exemption from duty
The encouragements which it already enjoys, are a would be adviseable, which would go towards obviating
duty of ten per cent. on the foreign rival article, and an the objection just mentioned. They are now subject to a
exemption of salt-petre, one of the principal ingredients duty of five per cent.
of which it is composed, from duty. A like exemption As to the books in most general family use, the
of sulphur, another chief ingredient, would appear to be constancy and universality of the demand, would ensure
equally proper. No quantity of this article has yet been exertions to furnish them at home, and the means are
produced from internal sources. The use made of it in completely adequate. It may also be expected ultimately,
finishing the bottoms of ships, is an additional inducement in this as in other cases, that the extension of the domestic
to placing it in the class of free goods. Regulations for the manufacture would conduce to the cheapness of the
careful inspection of the article would have a favourable article.
tendency.
It ought not to pass unremarked, that to encourage
the printing of books, is to encourage the manufacture
PAPER of paper.
Manufactories of paper are among those which are
arrived at the greatest maturity in the United States, and REFINED SUGARS AND CHOCOLATE
are most adequate to national supply. That of paper-
Are among the number of extensive and prosperous
hangings is a branch in which respectable progress has
domestic manufactures.
been made.
Drawbacks of the duties upon the materials of which
Nothing material seems wanting to the further success
they are respectively made, in cases of exportation, would
of this valuable branch, which is already protected by a
have a beneficial influence upon the manufacture, and
competent duty on similar imported articles.
would conform to a precedent, which has been already
In the enumeration of the several kinds made subject furnished in the instance of molasses, on the exportation
to that duty, sheathing and cartridge paper have been of distilled spirits.
omitted. These being the most simple manufactures of
Cocoa—the raw material now pays a duty of one
the sort, and necessary to military supply, as well as ship-
cent per pound, while chocolate, which is a prevailing
building, recommend themselves, equally with those of
and very simple manufacture, is comprised in the mass
other descriptions, to encouragement, and appear to be as
of articles rated at no more than five per cent.
fully within the compass of domestic exertions.
There would appear to be a propriety in encouraging
PRINTED BOOKS the manufacture, by a somewhat higher duty on its
foreign rival, than is paid on the raw material. Two cents
The great number of presses disseminated throughout per pound on imported chocolate, would, it is presumed,
the Union, seem to afford an assurance, that there is be without inconvenience.
no need of being indebted to foreign countries for the
printing of the books which are used in the United States. The foregoing heads comprise the most important of
A duty of ten per cent. instead of five, which is now the several kinds of manufactures, which have occurred
charged upon the article, would have a tendency to aid as requiring, and, at the same time, as most proper for
the business internally. public encouragement; and such measures for affording
it, as have appeared best calculated to answer the end,
It occurs, as an objection to this, that it may have have been suggested.
an unfavourable aspect towards literature, by raising
the prices of books in universal use in private families, The observations, which have accompanied this
delineation of objects, supercede the necessity of many
supplementary remarks. One or two however may not be than decrease the public revenue.
altogether superfluous.
There is little room to hope, that the progress of
Bounties are in various instances proposed as one species manufactures, will so equally keep pace with the progress
of encouragement. of population, as to prevent, even, a gradual augmentation
of the product of the duties on imported articles.
It is a familiar objection to them that they are difficult to
be managed and liable to frauds. But neither that difficulty As, nevertheless, an abolition in some instances, and a
nor this danger seems sufficiently great to countervail the reduction in others of duties, which have been pledged for
advantages of which they are productive, when rightly the public debt, is proposed, it is essential, that it should
applied. And it is presumed to have been shewn, that be accompanied with a competent substitute. In order to
they are in some cases, particularly in the infancy of new this, it is requisite, that all the additional duties which shall
enterprises indispensable. be laid, be appropriated in the first instance, to replace all
defalcations, which may proceed from any such abolition
It will however be necessary to guard, with extraordinary
or diminution. It is evident, at first glance, that they will
circumspection, the manner of dispensing them. The
not only be adequate to this, but will yield a considerable
requisite precautions have been thought of; but to enter into
surplus.
the detail would swell this report, already voluminous, to a
size too inconvenient. This surplus will serve.
If the principle shall not be deemed inadmissible the First. To constitute a fund for paying the bounties which
means of avoiding an abuse of it will not be likely to present shall have been decreed.
insurmountable obstacles. There are useful guides from
Secondly. To constitute a fund for the operations of a
practice in other quarters.
Board, to be established, for promoting Arts, Agriculture,
It shall therefore only be remarked here, in relation to Manufactures and Commerce. Of this institution, different
this point, that any bounty, which may be applied to the intimations have been given, in the course of this report. An
manufacture of an article, cannot with safety extend beyond outline of a plan for it shall now be submitted.
those manufactories, at which the making of the article is a
Let a certain annual sum, be set apart, and placed under
regular trade.
the management of Commissioners, not less than three,
It would be impossible to annex adequate precautions to to consist of certain Officers of the Government and their
a benefit of that nature, if extended to every private family, Successors in Office.
in which the manufacture was incidentally carried on, and
Let these Commissioners be empowered to apply the fund
its being a merely incidental occupation which engages
confided to them—to defray the expences of the emigration
a portion of time that would otherwise be lost, it can be
of Artists, and Manufacturers in particular branches of
advantageously carried on, without so special an aid.
extraordinary importance—to induce the prosecution
The possibility of a diminution of the revenue may also and introduction of useful discoveries, inventions and
present itself, as an objection to the arrangements, which improvements, by proportionate rewards, judiciously held
have been submitted. out and applied—to encourage by premiums both honorable
and lucrative the exertions of individuals, and of classes,
But there is no truth, which may be more firmly relied
in relation to the several objects, they are charged with
upon, than that the interests of the revennue are promoted,
promoting and to afford such other aids to those objects, as
by whatever promotes an increase of National industry and
may be generally designated by law.
wealth.
The Commissioners to render (to the Legislature) an
In proportion to the degree of these, is the capacity of
annual account of their transactions and disbursements; and
every country to contribute to the public treasury; and where
all such sums as shall not have been applied to the purposes
the capacity to pay is increased, or even is not decreased, the
of their trust, at the end of every three years, to revert to
only consequence of measures, which diminish any particular
the Treasury. It may also be enjoined upon them, not to
resource is a change of the object. If by encouraging the
draw out the money, but for the purpose of some specific
manufacture of an article at home, the revenue, which
disbursement.
has been wont to accrue from its importation, should be
lessened, an indemnification can easily be found, either out It may moreover be of use, to authorize them to receive
of the manufacture itself, or from some other object, which voluntary contributions; making it their duty to apply them
may be deemed more convenient. to the particular objects for which they may have been made,
if any shall have been designated by the donors.
The measures however, which have been submitted, taken
aggregately, will for a long time to come rather augment There is reason to believe, that the progress of particular
manufactures has been much retarded by the want of skilful
workmen. And it often happens that the capitals employed
are not equal to the purposes of bringing from abroad
workmen of a superior kind. Here, in cases worthy of it,
the auxiliary agency of Government would in all probability
be useful. There are also valuable workmen, in every
branch, who are prevented from emigrating solely by the
want of means. Occasional aids to such persons properly
administered might be a source of valuable acquisitions to
the country.
The propriety of stimulating by rewards, the invention and
introduction of useful improvements, is admitted without
difficulty. But the success of attempts in this way must
evidently depend much on the manner of conducting them.
It is probable, that the placing of the dispensation of those
rewards under some proper discretionary direction, where
they may be accompanied by collateral expedients, will
serve to give them the surest efficacy. It seems impracticable
to apportion, by general rules, specific compensations for
discoveries of unknown and disproportionate utility.
The great use which may be made of a fund of this nature
to procure and import foreign improvements is particularly
obvious. Among these, the article of machines would form
a most important item.
The operation and utility of premiums have been adverted
to; together with the advantages which have resulted from
their dispensation, under the direction of certain public and
private societies. Of this some experience has been had in
the instance of the Pennsylvania society, (for the Promotion
of Manufactures and useful Arts;) but the funds of that
association have been too contracted to produce more than
a very small portion of the good to which the principles
of it would have led. It may confidently be affirmed that
there is scarcely any thing, which has been devised, better
calculated to excite a general spirit of improvement than the
institutions of this nature. They are truly invaluable.
In countries where there is great private wealth much
may be effected by the voluntary contributions of patriotic
individuals, but in a community situated like that of the
United States, the public purse must supply the deficiency of
private resource. In what can it be so useful as in prompting
and improving the efforts of industry?
All which is humbly submitted
Alexander Hamilton
Secretary of the Treasury