Protection to the Manufacturers of Cotton Fabrics. brought into conflict with facts, than they fall into ruins. In viewing their fragments the mind is irresistibly led to render the homage due to the genius and taste of the architects, but cannot refrain from regretting the waste, to no purpose, of superior intellects. The Western States prove the fallacy of such theories; they appear in their growth and expansion to be in advance of thought; while the political economist is drawing their portraits, their features change and enlarge, with such rapidity, that his pencil in vain endeavors to catch their expression, and to fix their physiognomy. doom, the inevitable destiny of their establishments. The National Government, in viewing the disastrous effects of a short-sighted policy, may relent, but what can relenting avail? Can it raise the dead to life? Can it give for injuries inflicted the reparation that is due? Industry, in every ramification of society, will feel the shock, and generations will, as they succeed each other, feel the effects of its undulations. Dissatisfaction will be visible everywhere, and the lost confidence and affections of the citizens will not be the least of the evils the Government will have to deplore. But should the National Government, pursuing an enlightened and liberal policy, sustain and foster the manufacturing establishments, a few years would place them in a condition to bid defiance to foreign competition, and would enable them to inThose States understanding their interest will crease the industry, wealth, and prosperity of the not be diverted from its pursuit. In the encour-nation, and to afford to the Government, in times agement of manufactures they find a stimulus for agriculture. It is to their advantage to manufacture, because, by decreasing the bulk of the articles, they at the same time increase their value by labor, bring them to market with less expense, and with the certainty of obtaining the best prices. The manufacturers of cotton, in making application to the National Government for encouragement, have been induced to do so for many reasons. They know that their establishments are new and in their infancy, and that they have to encounter a competition with foreign establishments that have arrived at maturity, that are supported by a large capital, and that have from the Government every protection that can be required. The American manufacturers expect to meet with all the embarrassments which jealous and monopolizing policy can suggest. The committee are sensible of the force of such considerations. They are convinced that old practices and maxims will not be abandoned to favor the United States. The foreign manufacturers and merchants will put in requisition all the powers of ingenuity; will practice whatever art can devise, and capital can accomplish, to prevent the American manufacturing establishments from striking root and flourishing in their rich and native soil. By the allowance of bounties and drawbacks, the foreign manufacturers and merchants will be furnished with additional means of carrying on the conflict, and of insuring success, of difficulty and distress, whatever it may require to support public credit, while maintaining the rights of the nation. Providence, in bountifully placing within our reach whatever can administer to happiness and comfort, indicates plainly to us our duty, and what we owe to ourselves. Our resources are abundant and inexhaustible. The stand that Archimedes wanted is given to the National and State governments, and laborsaving machinery tenders the lever the power of bringing those resources into use. This power imparts incalculable advantages to a nation whose population is not full. The United States require the use of this power, because they do not abound in population. The diminution of manual labor, by means of machinery, in cotton manufacture in Great Britain was, in the year 1810, as two hundred to one. Our manufacturers have already availed themselves of this power, and have profited by it. A little more experience in making machines, and in managing them with skill, will enable our manufacturers to supply more fabrics than are necessary for the home demand. Competition will make the prices of the articles low, and the extension of the cotton manufactories will produce that competition. One striking and important advantage which The American manufacturers have good rea- labor-saving machines bestow is this, that in all sons for all their apprehensions; they have much their operations they require few men, as a referat stake; they have a large capital employed, ence to another part of this report will show. and are feelingly alive for its fate. Should the No apprehensions can then be seriously enterNational Government not afford them protection, tained that agriculture will be in danger of havthe dangers which invest and threaten them willing its efficient laborers withdrawn from its service. destroy all their hopes, and will close their prospects of utility to their country. A reasonable encouragement will sustain and keep them erect; but, if they fall, they fall never to rise again. The foreign manufacturers and merchants know this, and will redouble with renovated zeal the stroke to prostrate them. They also know that, should the American manufacturing establishments fall, their mouldering piles, the visible ruins of a legislative breath, will warn all who shall tread in the same footsteps, of the On the contrary, the manufacturing establishments increasing the demand for raw materials will give to agriculture new life and expansion. The committee, after having, with great deference and respect, presented to this House this important subject, in various points of view, feel themselves constrained, before concluding this report, to offer a few more observations, which they consider as being immediately connected with it, and not less so with the present and future prosperity of this nation. Protection to the Manufacturers of Cotton Fabrics. The prospects of an enlarged commerce are not flattering. Every nation, in times of peace, will supply its own wants from its own resources, or from those of other nations. When supplies are drawn from foreign countries, the intercourse which will ensue will furnish employment to the navigation only of the countries connected by their reciprocal wants. Our concern does not arise from, nor can it be increased by, the limitation which our navigation and trade will have prescribed to them, by the peace and apparent repose in Europe. the United States dependent on any nation for supplies absolutely necessary for defence, for comfort, and for accommodation? Will not the strength, the political energies of this nation be materially impaired, at any time, but fatally so in those of difficulty and distress, by such dependence? Do not the suggestions of wisdom plainly show that the security, the peace, and the happiness of this nation depend on opening and enlarging all our resources, and drawing from them whatever shall be required for public use or private accommodation ? Our apprehensions arise from causes that can- The committee, from the views which they not animate by their effects. Look wheresoever | have taken, consider the situation of the manuthe eye can glance, and what are the objects that facturing establishments to be perilous. Some strike the vision? On the continent of Europe have decreased, and others have suspended busiindustry, deprived of its motive and incitement, ness. A liberal encouragement will put them is paralyzed; the accumulated wealth of ages, again into operation, with increased powers; but, seized by the hand of military despotism, is ap- should it be withheld, they will be prostrated. propriated to and squandered on objects of ambi- Thousands will be reduced to want and wretchedtion; the order of things unsettled, and confidence ness. A capital of near $60,000,000 will become between man and man annihilated. Every mo- inactive, the greater part of which will be a dead ment is looked for with tremulous, anxious, and loss to the manufacturers. Our improvidence increased solicitude; hope languishes, and com- may lead to fatal consequences; the Powers mercial enterprise stiffens with fear. The politi-jealous of our growth and prosperity will acquire cal horizon appears to be calm, but many, of no ordinary sagacity, think they behold signs portentous of a change-the indications of a violent tempest which will again rage and desolate that devoted region. the resources and strength which this Government neglects to improve. It requires no prophet to foretell the use that foreign Powers will make of them. The committee, from all the considerations Should this prediction fail, no change for the which they have given to this subject, are deeply better, under existing circumstances, can take impressed with a conviction that the manufacturplace. Where despotism, military despotism, ing establishments of cotton wool are of real reigns, silence and fearful stillness must prevail. utility to the agricultural interest, and that they Such is the prospect which continental Europe contribute much to the prosperity of the Union." exhibits to the enterprise of American merchants. Under the influence of this conviction the comCan it be possible for them to find in that re-mittee beg leave to tender, respectfully, with this gion sources which will supply them with more report, the following resolution: than $17,000,000, the balance due for British manufactures imported? this balance being over and above the value of all the exports to foreign countries from the United States. The view which is given of the dreary prospect of commercial advantages accruing to the United States by an intercourse with continental Europe is believed to be just. The statement made of the great balance in favor of Great Britain, due from the United States, is founded on matter of fact. In the hands of Great Britain are gathered together, and held many powers, which they have not been accustomed hitherto to feel and to exercise. Resolved, That, from and after the 30th day of June next, in lieu of the duties now authorized by law, there be laid, levied, and collected, on cotton goods imported into the United States, and the Territories thereof, from any foreign country whatever, per centum ad valorem, being not less then -cents per square yard. The number of cotton spindles supposed to be now employed, or ready to be employed, in the United States, are 550,000; but, upon sure grounds, may be stated at 500,000. The capital necessary to carry on the manufacture, including the stock of cotton wool, the yarn in the hands of weavers, the cloth in the hands of the agents, or sold at a No improper motives are intended to be im- credit of six months, added to the real estate, puted to that Government; but does not ex-buildings, and machinery, is estimated at seventyperience teach a lesson that should never be forgotten-that Governments, like individuals, are too apt "to feel power and forget right?" It is not inconsistent with national decorum to become circumspect and prudent. May not the Government of Great Britain be inclined, in analyzing the basis of her political power, to consider and regard the United States as her rival, and to indulge an improper jealousy-the enemy of peace and repose? Can it be politic, in any point of view, to mak five dollars per spindle, which, on 500,000 spindies, amounts to $37,500,000. The number of persons employed constantly and steadily may be stated at one hundred thouof whom not more than one-ninth, or, perhaps, one-tenth are able-bodied men; the rest are infirm, feeble men, or women and children. The manufacture must, also, give incidental employment to a much greater number of persons, in weaving and otherwise, whose ordinary employ. ment is agriculture, and who devote to the man Tariff of Duties on Imports. ufacture those hours of Winter and bad weather, when the labors of the farm are suspended. After calculating the cost of the raw material, the labor, interest of money at 6 per cent., insurance, repairs, and other charges, we are of opinion that a duty of at least ten cents on the square yard is necessary for the protection of the American manufacture, and that an ad valorem duty of even 40 or 50 per cent. on the India goods, on account of the lowness of the first cost, would not give the requisite encouragement. It may not be improper here to state that an increase of the duties upon cotton goods, generally, though it might diminish the importation of such goods as we make, would, on the whole, not diminish the receipts of the Treasury, because the increased receipts from such goods as we do not manufacture would counterbalance the loss on such as we do. With the machinery already erected, the cotton manufacturers can supply the United States with about ninety millions of yards of cotton cloth annually. These consist chiefly of ginghams, plaids, bed-ticks, stripes, checks, sheetings, shirtings, and in part of canvass and velvets and other cut stuffs. At present the coarse shirtings made from yarn No. 12, will bring about 23 cents in New York, at which price they cannot be afforded: the same article has been sold at 33 to 35 cents. The price must necessarily be regulated by the price of cotton wool which during the war was very high at the North, and since the war has been high everywhere. The principal markets are the cities of New York, Philadelphia, and Baltimore, and, in a less degree, Charleston and Savannah: from these cities they are spread over the South and West. Of the number of spindles now in operation, very few were effectually at work before the war, Such establishments have as yet reaped no profit whatever. Had the whole number been in complete operation before the war, the home competition would have reduced the prices much lower than they were; but the greater number produced no effect till about the conclusion of the war. We are unable to state, with any exactness, the amount or value of cotton goods imported into the United States in different years; but, to show of how much importance this trade is to Great Britain, we would state that between a quarter and a third of all the exports of British produce and manufacture during the years 1806 and 1807say £11,417,834, on an average of the two years -were made to the United States. In the same years, the real value of cotton goods exported to the United States from Great Britain (exclusive of Scotland) was, on an average of the two years, £4,393,449, and of woollen goods, £4,591,437 being $19,000,000 of cotton, and $20,000,000 of woollen. It is proper to add, that there is now one manufactory of cut fustians and velvets at Hudson, and another about to begin at Frankfort, and that these goods require a duty higher than we have proposed for other goods. They cost more-say from 14d. to 30d. per yard of 18 inches widthand therefore will require a duty of 30 cents per square yard for such as cost 23d. and under, and 36 cents for such as cost more. TARIFF OF DUTIES ON IMPORTS. [Communicated to the House, February 13, 1816.] TREASURY DEPARTMENT, Feb. 12, 1816. SIR: In obedience to the resolution of the House of Representatives of the 23d of February, 1815, I have the honor to transmit a report on the subject of a general tariff of duties proper to be imposed on imported goods, wares, and merchandise. I have the honor to be, &c. A. J. DALLAS. Hon. SPEAKER of the House of Reps. On the 23d February, 1815, the House of Representatives "Resolved, That the Secretary of the Treasury be directed to report to Congress, at their next session, a general tariff of duties proper to and, in obedience to that resolution, the Secretary be imposed upon goods, wares, and merchandise," of the Treasury has now the honor to lay before Congress the following report, comprehendingI. A view of the tariff of the United States, and its incidents upon the Peace Establishment. reforming the tariff of the United States, includII. A statement of the general principles for ing the means of enforcement. III. A general tariff proposed for the consideration of Congress. I. A view of the Tariff of the United States, and its incidents upon the Peace Establishment. By an act of Congress, passed on the 1st July, 1812, the permanent duties previously imposed by law upon goods imported into the United States from foreign places were doubled; an addition of 10 per cent. was made to the double duties upon goods imported in vessels not of the United States; and vessels belonging wholly or in part to the subjects of foreign Powers, entering the United States, were charged with an additional tonnage duty of $1 50 per ton. This act was limited in its continuance to the period of one year after the peace with Great Britain, and it expires of course on the 17th of February, 1816. The act (with all its supplements) imposing an additional duty, commonly called the "Mediterranean Fund," of 2 per cent. ad valorem on all imported goods paying duties ad valorem, and a discriminating duty of 10 per cent upon that additional duty, in respect to all goods imported in vessels not of the United States, had expired on the 3d March, 1815. Considering the subject, therefore, upon the foundation on which it is placed by the extinction of the Mediterranean Fund, and by the restoration of peace, the annexed table (marked A) exhibits the general tariff of the United States, resulting from the successive acts of Congress imposing, augmenting, and modifying the duties Tariff of Duties on Imports. upon imported merchandise, compared with the rates of duties proposed for the new tariff; and it is susceptible of the discrimination marked in the table No. 1, comprising the articles charged with specific duties; No. 2, comprising the articles charged with duties ad valorem, at the several rates of 12 per cent., 15 per cent., and 20 per cent.; and No. 3, comprising the articles that are free from duty. It is another important view of the subject, connected with the details of the table A, that the rate of duty upon the tonnage of vessels of the United States, and of the duties upon the goods which they import, is less than upon the tonnage of other vessels, and of their cargoes. Thus: 1. As to the duty on tonnage. Ships or vessels of the United States entering from any foreign port or place, or carrying goods from one district to another district, are charged at the rate, per ton of 6 cts. Ships or vessels built within the United States, but belonging wholly or in part to the subjects of foreign Powers, entering from a foreign place or port, are charged at the rate, per ton, of Ships or vessels of every other description entering from a foreign port or place, carrying goods from one district to another district within the United States, are charged at the rate, per ton, of And it may be properly here added that ships and vessels not of the United States, or not wholly owned by American citizens, entering the ports of the United States, are charged by law with the duty called "light money," at the rate, per ton, of 30 do. tion of the discriminating duties in relation to every foreign nation which shall abolish such of its discriminating and countervailing duties as are disadvantageous to the United States. The duty on tonnage is payable at the time of entry; but, before the product of the duties on goods imported reaches the public Treasury, the collection is affected by the credit which the law allows to the importer, and the amount is liable to a reduction, by the allowance of drawbacks and bounties, as well as by the expense of collection. 1st. As to the credit for duties on goods imported. cepted,) and on goods imported by sea from all On the produce of the West Indies, (salt exforeign ports and islands lying north of the equator, and situated on the eastern shores of America, it is three months for one-half, and six months for the other half. On salt it is nine months. On Madeira, and all other wines, it is twelve mohths. On goods imported from Europe, (other than wines, salt, and teas,) it is eight months for onethird, ten months for one-third, and twelve months for one-third. On goods (other than wines, salt, and teas) imported from any other place than Europe and the West Indies, it is six months for one-half, nine months for one-fourth, and twelve months for 50 do. one-fourth. 50 do. On teas imported from China or Europe it is conditionally, upon deposites, two years, subject, as intermediate sales may be effected, to payments at four months, eight months, or twelve months, according to the amount of sales, respectively. 2d. As to the drawback of duties on goods exported. 2. As to the duty on goods imported. The general provision of the law allows a drawback of the duties on goods imported into The discriminating duty imposed by law on goods the United States, provided they amount to fifty imported in vessels of the United States is not dollars, if the goods be exported within twelve made a direct charge upon the goods as specified calendar months after the importation to any forin the table A, but it is charged generally upon eign port or place other than the dominions of the rate of duty imposed on the like goods, when any foreign State immediately adjoining to the imported in vessels of the United States; and it United States. This local limitation has been is uniformly an addition of 10 per cent. upon the modified, however, so as to authorize an exportaAmerican rate of duty, whether that be specifiction, with the benefit of the drawback, from or ad valorem. Louisiana to any port or place situated to the southward thereof. The discriminating duty is to be considered, however, in connexion with the treaties and acts of Congress which have subjected it to temporary or permanent modifications. Thus, 1. The Louisiana Convention suspended the discriminating duties for a period of twelve years, (which will expire on the 6th March, 1816,) in relation to French and Spanish vessels and cargoes arriving within the ceded Territory. 2. The convention to regulate the commerce between the territories of the United States and His Britannic Majesty will suspend the discriminating duties in relation to British vessels and cargoes arriving within the United States from the British territories in Europe, for a period of four years, commencing on the 3d July, 1815. And, 3. The act of the 3d March, 1815, has authorized the aboli-Icerning them. To the general provision of the law for the allowance of drawback there are some exceptions: 1st. The additional duty of ten per cent. imposed upon goods imported in vessels not of the United States, is not the subject of drawback. 2dly. The right of exportation for the benefit of drawback is not allowed in the case of foreign dried and pickled fish, and other salted provisions, fish oil, or playing cards. 3dly. The rate of a half cent per gallon on spirits, with two and a half per cent. on the duties, and the rate of three and a half per cent. on the amount of the duties on all other goods imported, is to be retained, when they are exported for the benefit of drawback, as an indemnification for the expense accrued con Tariff of Duties on Imports. 3d. As to the allowance of bounties on exports. The act of the 29th of July, 1813, (which will expire on the 17th of February, 1816,) when it imposed a duty of twenty cents per bushel upon imported salt, allowed a bounty upon all exported pickled fish of the fisheries of the United States, at the rate of twenty cents per barrel, provided the fish were wholly cured with foreign salt, on which a duty had been paid or secured. The same act authorizes an annual allowance to the owners and crews of American vessels and boats employed in the fisheries, graduated according to the tonnage. The act of the 24th of July, 1813, (which will also expire on the 17th of February, 1816,) when it imposed a duty of four cents per pound upon all sugars refined within the United States, authorized a drawback, in the nature of a bounty, upon all such of the sugar so refined, as should be exported from the United States to any foreign port or place. 4th. As to the expense of the collection of duties on imports. The successful collection of the duties on imports, before the introduction of the restrictive system, depended more upon the integrity of the commercial community than upon the rigor of the laws, or an expensive vigilance at the customhouse. It is not to be denied or disregarded, however, that soon after that event the spirit of illicit commerce was kindled, that it spread during the late war, and that, with every just reliance upon the honor of the American merchant, measures of great energy have become necessary for the protec tion of the fair trader, as well as for the security of the revenue. Hitherto the average annual expense of collection may be stated at nearly four per cent. upon the annual product (exclusive of the fees paid by individuals, which may be estimated at one per cent. more) during a season of open and prosperous commerce; and it is believed that the effect of an increased expenditure in the employment of the means which are necessary to prevent and detect offences against the laws, will so augment the product of the duty, as to afford a certain and ample equivalent for the original advance. The operation of the tariff, exhibited in table A, with the incidents which have been stated, may be concisely viewed with reference to two periods in the commerce of the United States: ist. Before the introduction of the restrictive system, from 1804 to 1807, both years inclusive; and, 2d, after the introduction of the restrictive system, from 1808 to 1811, both years inclusive. Thus |