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markets are so confined and restricted, as to render the demand very unequal to the supply.
Independently likewise of the artificial impediments, which are created by the policy in question, there are naturai causes tending to render the external demand for the surplus of agricultural nations a precarious reliance. The differences of seasons in the countries which are the consumers, make immense differences in the produce of their own soils, in different years, and consequently in the degrees of their necessity for foreign supply. Plentiful harvests with them, especially if similar ones occur at the same time in the countries which are the furnishers, occasion of course a glut in the markets of the latter.
Considering how fast and how much the progress of new settle ments in the United States must increase the surplus produce of the soil, and weighing seriously the tendency of the system, which prevails among most of the commercial nations of Europe; whatever de pendence may be placed on the force of natural circumstances to counteract the effects of an artificial policy; there appear strong reasons to regard the foreign demand for that surplus, as too uncertain a reliance, and to desiré a substitute for it, in an extensive domestic market.
To secure such a market, there is no other expedient, than to promote manufacturing establishments. Manufacturers, who constitute the most numerous class, after the cultivators of land, are for that reason the principal consumers of the surplus of their labour.
This idea of an extensive domestic market for the surplus produce of the soil, is of the first consequence. It is, of all things, that which most effectually conduces to a flourishing state of agriculture. If the effect of manufactories should be to detach a portion of the hands, which would otherwise be engaged in tillage, it might possibly cause à smaller quantity of lands to be under cultivation: but by their ten. dency to procure a more certain demand for the surplus produce of the soil, they would, at the samne time, cause the lands, which were in cultivation, to be better improved and more productive. And while, by their influence, the condition of each individual farmer would be meliorated, the total mass of agricultural production would 1. probably be increased. For this must evidently depend as much, if I not more, upon the degree of improvement, than upon the number of acres under culture.
It merits particular observation, that the multiplication of manu. I factories not only furnishes a market for those articles which have i been accustomed to be produced in abundance, in a country; but it likewise creates a demand for such as were either unknown or produced in inconsiderable quantities. The bowels, as well as the surface of the earth, are ransacked for articles which were before neglected. : Animals, plants, and minerals acquire a utility and value, which were before unexplored.
'The foregoing considerations seem sufficient to establish, as general propositions, that it is the interest of nations to diversify the industrious pursuits of the individuals who compose them that the ego in the tablishment of manufactures is calculated not only to increase the general stock of useful and productive labour, but even to improve the
state of agriculture in particular, certainly to advance the interests of those who are engaged in it. There are other views, that will be hereafter taken of the subject, which, it is conceived, will serve to confirm Hese inferences.
To all the arguments which are brought to evince the impractica bility of success in manufacturing establishinents in the United States, it might have been a sufficient answer to have referred to the experience of what has been already done: it is certain that several important branches have grown up and flourished with a rapidity which surprises; affording an encouraging assurance of success in future attempts; of these it may not be improper to enumerate the most considerable 1
I. Of skins. Tanned and tawed leather, dressed skins, shoes, boots, and slippers, harness and sadlery of all kinds, portmanteaus and trunks, leather breeches, gloves, mufts and tippets, parchment and glue.
II. Of iron. Bar and sheet iron, steel, nail rods and nails, imple ments of husbandry, stoves, pots and other household utensils, the steel and iron work of carriages, and for ship building, anchors, scale beams, and weights, and various tools of artificers, arms of different kinds; though the manufacture of these last has of late diminished for want of demand.
III. Of wood. Ships, cabinet wares and turnery, wool and cotton cards, and other machinery for manufactures and husbandry, mathe. matical instruments, coopers wares of every kind.
IV. Of flax and hemp. Cables, sail-cloth, cordage, twine and packthread.
V. Bricks and coarse tiles, and potters' wares.
VII. Writing and printing paper, sheathing and wrapping paper, pasteboards, fullers' or press papers, paper hangings.
VIII. Hats of fur and wool, and of mixtures of both. Women's stuff and silk shoes.
IX. Refined sugars.
XI. Copper and brass wares, particularly utensils for distillers, sugar refiners and brewers, andirons and other articles for household use-philosophical apparatus.
XII. Tin wares for most purposes of ordinary use.
Besides manufactories of these articles which are carried on a's regular trades, and have attained to a considerable degree of maturity, there is a vast scene of household manufacturing, which contributes more largely to the supply of the community, than could be imagined, without having made it an object of particular enquiry. This observation is the pleasing result of the investigation, to which the subject of this report has led; and is applicable as well to the southern as to the middle and northern states; great quantities of coarse cloths, coatings, serges and flannels, linsey woolseys, hosiery of wool, cotton and thread, coarse fustians, jeans and muslins, checked and striped cotton and linen goods, bedticks, coverlets and counterpanes, tow linens, coarse shirtings, sheetings, towelling and table linen, and various mixtures of wool and cotton, and of cotton and flax, are made in the household way; and in many instances to an extent not only sufficient for the supply of the families in which they are made, but for sale; and even in some cases for exportation. It is computed in a number of districts, that two-thirds, three-fourths, and even four-fifths of all the cloathing of the inhabitants are made by themselves. The importance of so great a progress, as appears to have been made in family manufactures, within a few years, both in a moral and political view, renders the fact highly interesting. '
Neither does the above enumeration comprehend all the articles that are manufactured as regular trades. Many others occur, which are equally well established, but which not being of equal importance have been omitted. And there are many attempts still in their infancy, which, though attended with very favourable appearances, could not have been properly comprised in an enumeration of manufactories already established. There are other articles also of great importànce, which, though, strictly speaking, manufactures, are omitted, as being immediately connected with husbandry: such are flour, pot and pearl ash, pitch, tar, turpentine, and the like.
'There remains to be noticed an objection to the encouragement of manufactures, of a nature different from those which question the probability of success—this it derived from its supposed tendency to give a monopoly of advantages to particular classes, at the expense of the rest of the community, who, it is affirmed, would be able to procure the requisite supplies of manufactured articles, on better terms from foreigners, than from our own citizens, and who, it is alleged, are reduced to a necessity of paying an enhanced price for whatever they want, by every measure, which obstructs the free competition of foreign commodities.
It is not an unreasonable supposition, that measures which serve to · abridge the free competition of foreign articles, have a tendency to · occasion an enhancement of prices, and it is not to be denied, that such is the effect of a number of cases: but the fact does not uniformly correspond with the theory. A reduction of prices has, in several instances, immediately succeeded the establishment of a domestic manufacture. Whether it be that foreign manufacturers endeavour to supplant, by underselling our own, or whatever else be the cause, the effect has been such as is stated, and the reverse of what might have been expected.
But though it were true, that the immediate and certain effect of regulations controlling the competition of foreign with domestic fabrics, - was an increase of price, it is universally true, that the contrary is the - ultimate effect with every successful manufacture. When a domestic manufacture has attained to perfection, and has engaged in the prosecution of it a competent number of persons, it invariably becomes cheaper. Being free from the heavy charges which attend the importation of foreign commodities, it can be afforded, and accordingly seldom or never fails to be sold cheaper, in process of time, than was
the foreign article for which it is a substitute. The internal competition, which takes place, soon does away every thing like monopoly, and by degrees reduces the price of the article to the minimum of a reasonable profit on the capital employed. This accords with the reason of the thing and with experience. .
Whence it follows, that it is the interest of the community, with a view to eventual and permanent economy, to encourage the growth ot inanufactures. In a national view, a temporary enhancement of price must always be well compensated by a permanent reduction of it.
It is a reflection, which may with propriety be indulged here, that this eventual diminution of the prices of manufactured articles, which is the result of internal manufacturing establishments, has a direct and very important tendency to benefit agriculture. It enables the farmer to procure, with a smaller quantity of his labour, the manufactured produce of which he stands in need, and consequently increases the value of his income and property. .
The objections, which are commonly made to the expediency of encouraging, and to the probability of succeeding in manufacturing pursuits, in the United States, having now been discussed, the considerations, which have appeared in the course of the discussion, recommending that species of industry, to the patronage of the government, will be materially strengthened by a few general and some particular topics, which have been naturally reserved for subsequent notice.
1. There seems to be a moral certainty that the trade of a country, which is both manufacturing and agricultural, will be more lucrative and prosperous, than that of a country which is merely agricultural.
One reason for this is found in that general effort of nations (which has been already mentioned) to procure from their own soils, the articles of prime necessity requisite to their own consumption and use; and which serves to render their demand for a foreign supply of such articles in a great degree occasional and contingent. Hence, while the necessities of nations exclusively devoted to agriculture, for the fabrics of manufacturing states, are constant and regular, the wants of the latter for the products of the former, are liable to very considerable fluctuations and interruptions. The great inequalities, resulting from difference of seasons, have been elsewhere remarked : this uniformity of demand, on one side, and unsteadiness of it on the other, must necessarily have a tendency to cause the general course of the exchange of commodities between the parties, to turn to the disadvantage of the merely agricultural states. Peculiarity of situation, a climate and soil adapted to the production of peculiar commodities, may, sometimes, contradict the rule: but there is every reason to believe, that it will be found, in the main, a just one.
Another circumstance, which gives a superiority of commercial advantages to states that manufacture, as well as cultivate, consists in the more numerous attractions, which a more diversified market offers to foreign customers, and in the greater scope which it affords to mercantile enterprise. It is a position of indisputable truth in commerce, depending too on very obvious reasons, that the greatest resort will ever be to those marts, where commodities, while equally abundant, are most various. Each difference of kind holds out an additional inducement: and it is a position not less clear, that the field of
and a species of opposition imagined to subsist between the manufacturing and agricultural interest.
This idea of an opposition between those two interests is the coinmon error of the early periods of every country; but experience gradually dissipates it. Indeed they are perceived so often to succour and to befriend each other, that they come at length to be considered as one: a supposition which has been frequently abused, and is not universally true. Particular encouragements of particular manufactures may be of a nature to sacrifice the interests of landholders to those of manufacturers: but it is nevertheless a maxim well established by experience, and generally acknowledged where there has been sufficient experience, that the “ aggregate” prosperity of 'manufactures, and the “ aggregate” prosperity of agriculture are intimately connect. ed. In the course of the discussion which has had place, various weighty considerations have been adduced operating in support of that maxim. Perhaps the superior steadiness of the demand of a domestic market for the surplus produce of the soil, is alone a convincing argument of its truth.
Ideas of a contrariety of interests between the northern and southern regions of the union, are in the main as unfounded as they are · mischievous. The diversity of circumstances, on which such contra
riety is usually predicated, authorises a directly contrary conclusion. Mutual wants constitute one of the strongest links of political connexion: and the extent of these bears a natural proportion to the diversity in the means of mutual supply.
Suggestions of an opposite complexion are ever to be deplored, 4s unfriendly to the steady pursuit of one great common cause, and to the perfect harmony of all the parts.
In proportion as the mind is accustomed to trace the intimate connexion of interest, which subsists between all the parts of society, united under the same government–the infinite variety of channels which serve to circulate the prosperity of each to and through the rest-in that proportion it will be little apt to be disturbed by solici: tudes and apprehensions, which originate in local discriminations. It is a truth as important as it is agreeable, and one to which it is not easy to imagine exceptions, that every thing tending to establish substantial and permanent order, in the affairs of a country, to increase the total mass of industry and opulence, is ultimately beneficial to overy part of it. On the credit of this great truth, an acquiescence may safely be accorded, from every quarter, to all'institutions, and arrangements, which promise a confirmation of public order, and an augmentation of national resource.
But there are more particular considerations which serve to fortify. the idea, that the encouragement of manufactures is the interest of all parts of the union. If the northern and middle states should be the principal scenes of such establishments, they would immediately benefit the more southern, by creating a demand for productions, some of which they have in common with the other states, and others Ol which are either peculiar to them, or more abundant, or of better quality, than elsewhere. These productions, principally, are timber, flax, hemp, cotton, wool, raw silk, indigo, iron, lead, furs, hides, skins and coals; of these articles, cotton and indigo are peculiar to the