The Massachusetts spy. [volume] (Worcester [Mass.]) 1821-1823, 1823-08-20

mum.
Let us suppose a mandatory of cloth
is set up in this country that they ma
nufacture 100000 yards of cloth of the
same quality; that owing to the disad-
vantages attending nesV establishments,
the high price of labour in this country,
and the smallness of the capital invested,
the inferiority of the machinery, and
the comparatively high price of living,
&c. the cloth when finished and ready
for sale, has cost the American merchant
S4 per yard. He will then receive for
his cloth [selling it at the same price
with the Enghsh) S6o0,oO0, thus clear
ing 100000.
England will then sell in this country
only 100000 yards of cloth, the demand
being supposed to continue the same,
viz. for 100000; and the American
manufacturer supplying 100000.
England, as soon as she discovers the
Americans setting up their own manu-
features, will endeavour to destroy
them, by underselling the Americans in
their own market; and having ascer-
tanned how much yard ofcloth costs an
American manufacturer, will perceive,
that because her capital is larger, and
labour there is cheaper, &c. she can at
Ee-~l-4--e-H Cor Fvs5 tirau the americans.
England therefore reduces the price of
her cloth to 81 per yard, and clears a
profit of 81 per yard, whereas the
American, if he sells at 81 per yard, will
just receive an indemnity. Consequent
ly the Americans are driven from their
factories. Their establishments are
broken up: and the English having
succeeded in regaining the market TO
themselves, raise the price of cloth
again to the old standard of Sc per yard.
Surprising this TO be the state of
things, the policy of our government is
very obyious.-Tbey should not suffer
such situation of affairs to continue,
because large sum of money goes out
ofthe country TO England, as clear profit
to her capitalists, for which no equiva-
lent whatever is received here. They
should not pay duties amounting TO
prohibition, because 1. In politicks, all
vtoIent measures are destructive, and it is
the rash and incons:derate only, who
are always at extremes; but, in this
particular case, it would offer too great
encouragement to spectators, to rush
headlong into manufactures. 9. 1t
would enable manufacturers to take an
undue advantage of the rest of society,
on account of the greatness of the de-
mand for cloth, and to their having the
undisputed monopoly; and 3. 1t would
offer too great an inducement to SNUG
Cling. A variety of other considerations
will suggest themselves to the intelli-
gent reader.
The proper course would be to ascer-
TAIN the prime cost of a yard of American
cloth to the American dealer; and
then lay such duty on the English
cloth, as will give some advantage to
the American manufacturer, not so large
as to drive the English from the market,
but large enough to encourage Ameri-
can manufacturers to continue the bust
ness. Let Us exempffy it by case.
Let us suppose the prime cost of cloth
in the hands of an English agent in this
country, 10 be, as before, So per yard,
including all expenses of freight, COM
mission, insurance, &c. as we'll as the
wages of the English manufacturers,
and the interest of The capital employed
IN the business. Let US suppose the
prime cost of American cloth per yard
in the hands of The American dealer,
including all expenses, as before, to be
s. per yard. Then the government
should lay such a duty on the English
cloth, as to give the American manufac-
turer an opportunity of selling his
goods at price, which will afford him
a profit on the capital which he has
invested in manufactures, equalt to the
average profits which arise from other
kinds of business, advantageously pur-
sued in the community.
Let ussuppose in the above case, that
dollar per yard was laid on the Eng
lish cloth. This would hardly be large
enough to prevent the English from un-
derselling US in our own market, be-
cause though it would render the prime
cost equal to both parties, yet as the
English have greater capital, they can
do it with smaller profit, and the
American manufacturer would still be
starved out Of the market. 1t should
therefore be large enough, to reduce
the prime cost Of American cloth some
what below that Of English. But some
persons will here say, ssWe are the
consumers; and if you tax English