The enquirer. [volume] (Richmond, Va.) 1804-1815, 1810-05-15
LETTER,
.rRoM The sEcRETARY OF THE TREASURY,
Irans'nitiing a Report, in part, on the spbject o
DOMESTIC MANUFACTURES.
(CoNrINuEp)

il ~
From this imperfect sketch Of American ma
ruac,nres, it may with certainty be inferred that
their annual product exceeds one hundrfd and
awen.y millions of dollars. And it is not impro.
baele that the raw materials used, and the provi-
sions & other articles consumed by the manufac
turers, create home market for agricultural
products not very inferior to that which arises
from foreign demand. result more favorable
than might have been expected from view of
the natural causes which impede the INTRODUCED.
orr and retard the progress Of manufactures in the
~. States.
The most prominent of those causes are the a.
.bundsnce of land compared with the population,
fhe high price Of labor, and the want of stuff.
Gent capital The superior attractions of agri.
cultural pursuits, the great extension of Ameri-
Can commerce during the late European wars, s
the continuance ofhabits after The causes whick
produced them have ceased TO exist, may also be
enumerated. Several Of those obstacles have
however, been removed or lessened The cheap
ness ofproyisons had always to certain extent
counterba!ancedt the high price of manual labor ;
and this is now in many important branches near
ly superseded by the introduction of machinery !:
great American capital has been acquired du-
ring the last twenty years, and the Injurious vic.
Aaton OF the neutral commerce OF the II. States
by forcing industry aud capitalinto other channels
have broken inveterale habits, and given ge-
neral impulse, to which must be ascribed the
great increase of manufactures during the two
aast years
The revenue Of tbh United States being prin.
.Sipalty derived from duties the importation of
foreigo merchandise, these have also operated as
a premium in favor Of American manufactures
whilst on the ether hand, the continuance OF
peace, and the frugaity of government, have rem
Hered unnecessary any oppressive taXss, tending
materially to enhance the price oflabor, or inpc.
ding any species OF industry.
~ No cause indeed has perhaps more promoted.
States, than the absence of those systems of in
sernal restrictions, and monopoly, which continue
TO dishgure the state OF society in other countries
No laws exist here directly or indirectly, confn
1ns man 70 particular occupation or place, or
excluding any citizen from any branch he NAV
at any time think proper TO pursue Industry Is
in every respect perfectly free and unfettered
every species oftrsde, commerce, art, prcft ssion
and manufacture being equally open TO all, with
out requiring any previous regular apprenticeship
admission or licence. Hence the progress of A
merlca has not been confined TO the improvement
OF her agriculture, and to the rapid formation o.
new settlements and states in the wilderness -
but her citizens have extended their commerce
fhrough every part of the globs, and carry or
wild complete success. even those branches
zcr which monopoly had heretofore been consi
dercd essentially necessary.
The same principle has also accelerated the
introduction and progress Of manufactures and
must ultimately give in that branch, as in all o.
thers, decided superiority to the citizens of the
United States over the inhabitants of countries
oppressed by taxes, restrictions and nnonopolies
1T is believed that even at this time, the only pow.
erlut obstacle against which American mauafac-
lures have to struggle, arises from the vastly SUI
perior capital of the first manufacturing nation OF
Europe, which enabirs her merchants to give We.
~ long credits, to sell ON small profits. and =,
make occasional sacrifices.
The information which has been obtained is
not Sufficient 20 submit, in conformity with the
resolution OF the house, the plan best calculated
90 protect and promote American manufactures
4ke most obvious means are bounties, Increased
duties on Importation, and loans by government
Occasional premiums might be beneficial but
general system ofbounties is more applicable
TO articles exported than 90 those manufactured
Tor home consumption.
The present system ofduties may, in some re-
spects, be equaiized and improved, so as to pro-
aect some species OF manufactures without affect
ing the revenue. But prohibitory duties are la
bic TO the treble objection Of destroying compe-
Sitiou, OF taxing the consumer, and of divertinp-
capital and industry into channels generally less
profitable to the nation than those which would
have Naturally been pursued by individual inter
est LETT to itself. f. moderate increase will be
Aess dangerous, and if adopted, should be CONT
nued through certain period for the repeal of
duty once laid, materially Injuries those who
nave relied on its permanently, and has been ex-
1mpiHed ~ the salt manufacture
1t''~Sb 'AO"N'SiJ AitC CJIii !'dTIltVG want OF
Ptal, IS the principal obstacle TO tie introduction
and advancement of manufactures in America.
II seems that the most efficient and NEST oh v;ous
remedy wouli consist in supplying that capital
For although the extension Of banks NAV give
spm- assistance in that respect, their operation
ID l'nited to q few places, nor dses it COMFORT
with INC nature VI those institutions to lend fr
periods IS lorg quisite Cor the establish
ment OF manufactures N tie United s. M sht Gre
aSe acreuiating stock, bearing low rate Of irtcr.
est, and lend ii et par to manufacturers, on prin
cipies somewhat similar TO that formerly adopt-
cd by the states of New YUr. and PENNSYLVANIA
IN their loan o5FceS. 1t is believed that plan
might be devised by which FIVE millions of liars
? year, but not exceeding in the whole twenty
mhil3ns, night be thus lent, without any materi.
alrisk of ultimate loss, and without taxing or
asjuring any other part Of tie community.
All which is respectfully Submitted.
- ALBERT GALLATIN
Treasury Department, Atrl LIN, 1910.
(A)