Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1828-03-21
For the Phenix Gazette.
To the Representatives, from Yirginia in
the Congress offhe United States.

the Congress ofthe United States
GENTLEMEN: The last, and apprehend, the
most Imposing Of the objections to the protect
inc system, which l have proposed to notice,
is founded on an impression, that whilst il will
add TO the expenses Of every other part Of the
community, its acknowledged benefits will at
tach exclusively TO the Northern States. With
an humble effort to satisfy you that this has no
better foundation than most of the other objec
tons that have been urged, shall close my Ia
bors for the present.
That the first effect Of the exclusion from
our marker, or articles for which we have been
in the habit Of depending on foreign nations, is
to increase their price, cannot be denied. But
it is equally certain, that where there are no
natural obstacles 10 their production at home,
anu free AID fair competition III relation TO
them is allowed, its ultimate effect is to re-
duce the price below that at which foreign ma
tioas can supply them. There is no principle
in political economy more fully established,
than that labor ard capital will always go where
they can BE- most proGaby employed; and ,ha,
they will continue TO move in the same drec-
concentrated on the particular employment in
view, 10 reduce its profits TO level with those
OF the various other occupations of,he country.
The operation Of this principle on the sub.
ieet Of domestic manufactures, is thus Forcibly
described BY General Hamilton in one of his
reports to Congress: "When domestic manu-
. faclure has a.iainrd TO perfection, and has en-
number ofpersons, it inval ias|y becomes cheap
er. Being free from the heavy charges which
attend the importation Of foreign commodities,
il can be afforded, and accordingly seldom or
never fails 10 be sold, cheaper, in process Of
time, than the foreign article for which it is
substitute. The in'erSal competition which
takes place, soon does away every thing like
monopoly, and by degrees reduces the price Of
the article to the minimum Of reasonable pro-
fit on the capital employed
How fully has The truth Of these remarks
been sustained by the experience Of this coun-
try, in relation to most Of the manufactures II
has hitherto attempted to establish! i beg
leave 10 ask your attention TO two cases in par
ticular. Amongst the earliest act of the Con
gress OF the United States, was one adopted in
1890, to protect the tonnage of the county,
With a view TO this, while only six cents per
ton were levied on our vessels, fifty cents were
charged on vessels Of forsi ign nations. Besides
this, in addition to the duties on msrcnandize
imported into the United States in American
vessels, an extra duty Of ten per cent was inns
posed on similar articles imported in foreign
vessels.
II viii readily be perceived that this discri-
minatlon between foreign and domestic ton
mage, amounted almost to prohibition of the
former; the consequence Of which was, its rapid
and regular diminution, until, at length, from
having been upwards of IL per cent Of our
whole tonnage in 1890, il was reduced to some
thing less than 2 per cent in 1896. Such a
change must, ofcourse, have increased he de-
mand for domestic tonnage, so much as TO have
added greatly 10 the price OF transportation
This effect, however, did not continue long -
For, according TO DR.. Seybert, the discrimina> |
ting duty operated like magic on the ship.own
ers of the Uni ed States. AS early as I793-I
only three years after its adoption--our ton
mage surpassed that of any other nation in the
world, except Grea, Britain; and in 1910, when
it had attained its maximum, it amounted to
l,474,7s3. At present it requires no other
protection than what may be necessary to coun.
tervail The protecting system Of other nations.
And it is a singular fact, that at this moment,
almost the whole trade between this country
and Great Britain is carried on in American
vessels.
But recent, and perhaps still stronger
instance of the ultimate effect Of prohibitory
duties, in lessenng the price of the article pro-
hibited, is furnished by the coarse coi,ons of
our country. These have come into existence,
and been reared up, under the operation of
dr,v ,rropnt,po IN absolute nrobi- &