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the time of our grandchildren exalt itself to the rank of the first



naval and commercial power in the world。 The history of the trade



and industry of North America is more instructive for our subject



than any other can be; Because here the course of development



proceeds rapidly; the periods of free trade and protection follow



closely on each other; their consequences stand out clearly and



sharply defined; and the whole machinery of national industry and



State administration moves exposed before the eyes of the



spectator。



    The North American colonies were kept; in respect of trade and



industry; in such complete thraldom by the mother country; that no



sort of manufacture was permitted to them beyond domestic



manufacture and the ordinary handicrafts。 So late as the year 1750



a hat manufactory in the State of Massachusetts created so great



sensation and jealousy in Parliament; that it declared all kinds of



manufactories to be 'common nuisances;' not excepting iron works;



notwithstanding that the country possessed in the greatest



abundance all the requisite materials for the manufacture of iron。



Even more recently; namely; in 1770; the great Chatham; made uneasy



by the first manufacturing attempts of the New Englanders; declared



that the colonies should not be permitted to manufacture so much as



a horseshoe nail。



    To Adam Smith belongs the merit of having first pointed out the



injustice of this policy。



    The monopoly of all manufacturing industry by the mother



country was one of the chief causes of the American Revolution; the



tea duty merely afforded an opportunity for its outbreak。



    Freed from restrictions; in possession of all material and



intellectual resources for manufacturing work; and separated from



that nation from which they had previously been supplied with



manufactured goods; and to which they had been selling their



produce; and thus thrown with all their wants upon their own



resources: manufactures of every kind in the North American free



states received a mighty stimulus during the war of revolution;



which in its turn had the effect of benefiting agriculture to such



an extent that; notwithstanding the burdens and the devastation



consequent upon the then recent war; the value of land and the rate



of wages in these states everywhere rose immensely but as; after



the peace of Paris; the faulty constitution of the free states made



the introduction of a united commercial system impossible; and



consequently English manufactured goods again obtained free



admission; competition with which the newly established American



manufactories had not strength enough to bear; the prosperity which



had arisen during the war vanished much more quickly than it had



grown up。 An orator in Congress said afterwards of this crisis: 'We



did buy; according to the advice of modem theorists; where we could



buy cheapest; and our markets were flooded with foreign goods;



English goods sold cheaper in our seaport towns than in Liverpool



or London。 Our manufacturers were being ruined; our merchants; even



those who thought to enrich themselves by importation; became



bankrupt; and all these causes together were so detrimental to



agriculture; that landed property became very generally worthless;



and consequently bankruptcy became general even among our



landowners。'



    This condition of things was by no means temporary; it lasted



from the peace of Paris until the establishment of the federal



constitution; and contributed more than any other circumstance to



bring about a more intimate union between the free states and to



impel them to give to Congress full powers for the maintenance of



a united commercial policy。 Congress was inundated with petitions



from all the states  New York and South Carolina not excepted 



in favour of protective measures for internal industry; and



Washington; on the day of his inauguration; wore a suit of



home…manufactured cloth; 'in order;' said a contemporary New York



journal; 'in the simple and impressive manner so peculiar to this



great man; to give to all his successors in office and to all



future legislators a memorable lesson upon the way in which the



welfare of this country is to be promoted。' Although the first



American tariff (1789) levied only light duties on the importation



of the most important manufactured articles; it yet worked so



beneficially from the very first years of its introduction that



Washington in his 'Message' in 1791 was able to congratulate the



nation on the flourishing condition of its manufactures;



agriculture; and trade。



    The inadequacy of this protection was; however; soon apparent;



for the effect of the slight import duties was easily overcome by



English manufacturers; who had the advantage of improved methods of



production。 Congress did certainly raise the duty on the most



important manufactured articles to fifteen per cent; but this was



not till the year 1804; when it was compelled; owing to deficient



customs receipts; to raise more revenue; and long after the inland



manufacturers had exhausted every argument in favour of having more



protection; while the interests opposed to them were equally



strenuous upon the advantages of free trade and the injurious



effects of high import duties。



    In striking contrast with the slight progress which had; on the



whole; been made by the manufacturers of the country; stood the



improved condition of its navigation; which since the year 1789;



upon the motion of James Madison; had received effectual



protection。 From a tonnage of 200;000 in 1789 their mercantile



marine had increased in 1801 to more than 1;000;000 tons。 Under the



protection of the tariff of 1804; the manufacturing interest of the



United States could just barely maintain itself against the English



manufactories; which were continually being improved; and had



attained a colossal magnitude; and it would doubtless have had to



succumb entirely to English competition; had it not been for the



help of the embargo and declaration of war of 1812。 In consequence



of these events; just as at the time of the War of Independence;



the American manufactories received such an extraordinary impetus



that they not only sufficed for the home demand; but soon began to



export as well。 According to a report of the Committee on Trade and



Manufactures to Congress in 1815; 100;000 hands were employed in



the woollen and cotton manufactures alone; whose yearly production



amounted to the value of more than sixty million dollars。 As in the



days of the War of Independence; and as a necessary consequence of



the increase in manufacturing power; there occurred a rapid rise in



all prices; not only of produce and in wages; but also of landed



property; and hence universal prosperity amongst landowners;



labourers; and all engaged in internal trade。



    After the peace of Ghent; Congress; warned by the experience of



1786; decreed that for the first year the previous duties should be



doubled; and during this period the country continued to prosper。



Coerced; however; by powerful private interests which were opposed



to those of the manufacturers; and persuaded by the arguments of



theorists; it resolved in the year 1816 to make a considerable



reduction in the import duties; whereupon the same effects of



external competition reappeared which had been experienced from



1786 to 1789; viz。 ruin of manufactories; unsaleability of produce;



fall in the value of property and general calamity among



landowners。 After the country had for a second time enjoyed in war



time the blessings of peace; it suffered; for a second time;



greater evils through peace than the most devastating war could



have brought upon it。 It was only in the year 1824; after the



effects of the English corn laws had been made manifest to the full



extent of their unwise tendency thus compelling the agricultural



interest of the central; northern; and western states to make



common cause with the manufacturing interest; that a somewhat



higher tariff was passed in Congress; which; however; as Mr



Huskisson immediately brought forward counteracting measures with



the view of paralysing the effects of this tariff on English



competition; soon proved insufficient; and had to be supplemented



by the tariff of 1828; carried through Congress after a violent



struggle。



    Recently published official statistics(1*) of Massachusetts



give a tolerable idea of the start taken by the manufactures of the



United States; especially in the central and northern states of the



Union; in consequence of the protective system; and in spite of the



subsequent modification of the tariff of 1828。 In the year 1837;



there were in this State (Massachusetts) 282 cotton mills and



565;031 spindles in operation; employing 4;997 male and 14;757



female hands; 37;275;917 pounds of cotton were worked up; and



126;000;000 yards of textile fabrics manufactured; of the value of



13;056;659 dollars; produced by a capital of 14;369;719 dollars。



    In the woollen manufacture there were 192 mills; 501 machines;



and 3;612 male and 3;485 female operatives employed; who worked up



10;858;988 pounds of wool; and produced 11;313;426 yards of cloth;



of the value of 10;399;807 dollars on a working capital of



5;770;750 dollars。



    16;689;877 pairs of shoes and boots were manufactured (large



quantities of shoes being exported to the western states); to the



value of 14;642;520 dollars。



    The other branches of manufacture stood in relative proportion



to the above。



    The combined value of the manufactures of the State (deducting



shipbuilding) amounted to over 86 million dollars; with a working



capital of about 60 million dollars。



    The number of operatives (men) was 117;352; and the total



number of inhabitants of the State (in 1837) was 701;331。



    Misery; brutality; and crime are unknown among the



manufacturing population here。 On the contrary; among the numerous



male and female factory workers the strictest morality;



cleanliness; and neatness in dress; exist; libraries are



established to furnish them with useful and instructive books; the



work is not exhausting; the food nourishing and good。 Most of the



women save a dowry for themselves。(2*)



    This last is evidently the effect of the cheap prices of the




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