The republic. [volume] (Washington [D.C.]) 1849-1853, 1849-12-25


his vings-encouragcd to invest that capital in
the enterprise in which his labor is engaged-en-
joying practically greater civil and political lDer-
ty, looking forward to an indefinite future IN
which, through his own good conduct and Example,
he may expect each succ essve generation OF his de-
scendants u be better clrcumsanced than Its pre-
decessors, it cannot be doubted that these advan-
tages add greatly to the efficiency OF the American
laborer, The precise extent to winch they go TO-,
wards compensating the difference in the price OF
labor, it is difficult TO define The efficiency OF our
labor may be expected to increase with the increase
Of reward to the laborer. In many of the New
England factories, the laborers are encouraged TO
invest their surplus earnings IN the stock OF the
company by which they are employed and are
thus stimulated, by direct personal interest, to the
greatest exertion. II may be expected that this
system will be introduced into other branches in
which ii may be found practicable, tending, as it
does SO powerfully to elevate the laborer increase
production, and practically instruct all men in the
great truth of the essential harmony of capital and
labor.
3D. Capital flows freely at home and abroad in
every productive channel in which it can flow safely,
and will even incur great hazards, if they be such
as its owner may hope to meet by the care and cir
cumsp ection of himself others to whom he has
confded its management. But if he knows that
skill, industry, and economy cannot avail him, and
that in addition to all the contingencies of rivalry
and markets, he is to be further exposed To dan
gers arising from causes quite beyond his control
or counteraction, he will hold back. The vacil-
doubt deferred large amount of capital from in
vestment in industrial pursuits. The encourage
ment offered on one day, and on the faith of which
liked investments have been made, which are ex-
posed to loss by the withdrawal of that encourage
nent the next is in fact substantial discourage
ment. And the insecurity resulting from the repe
ution of such acts has been seriously detrimental
4th The fluctuations in the foreign markets have
for many years been such seem to denote an
unhealthy and feverish state of business They
not in the natural course of a wholesome trade.
They seem to betoken change in existing arrange
ments, and the apprehension of such change is also
eyinced IN the efforts now making in England to
tain the British manufacturer, by putting at hazard
other important branches of industry The com
petition of new establishments with very large ones
already in existence abroad and in which the price
of labor is lower, is evidently not equal compe
tition. The capital fixed in machinery, furnaces,
&c, cannot be changed and the work of produc-
ton will not until the price shall have been
reduced TO point very little above the cost of ma
terias, labor, and repairs. OF course where the
lower price is paid for labor there will be larger
margin for reduction by the sacrifice of part of the
profit; and where great accumulation is in hand
of the avais of the business of former years, the
owner may find 1t his interest for while to sell his
commodity at less than the actual cost, if by that
means he drive out his rival looking, of course,
to subsequent reimbursement lat leasD when he
shall again have the control of the market.
This known necessity of the position of foreign
manufactures of course tends to discourage new
sting investments of capital here in similar enter
prises.
To counteract the influence of these unfavorable
circumstances, which, so long they continue,
must greatly Fetard our Advancement limit our
foreign commerce, and prevent the due progress of
industry, propose that the duties the slap lie
modites (whether material or manufactured
articles,) in which foreign nations compete with
own productions, be raised TO point which they
will afford substantial and sufficient encourage
ment to our domestic industry, provide for the
cessary increase and due security of the revenue,
and ensure the permancnce and stability of the
system. Experience has, think, shown this to be
wise, just and eflectuai mode TO promote new
and revive languishng branches of industry, pro-
vided the selection of the objects be wisely made and
limited TO those productions for which the country
is naturally adapted
We have been perhaps too long hesitating and va
cilating on the threshold of great career. The
want OF stability in the course of legislation, and
other disturbing causes have heretofore occasioned
Inconvenience. The shortduraton of some of the
rift acts-the great expansion OF the currency which
occurred during their operation-the Compromise
act Ga result of what was believed to be a political
pecessty,) which, whatever its effects existing
establishments, undoubtedly discouraged new adj
vonturers--and finally the unexpected repeal OF
the of lS42-these circumstances have certainly
been of a retarding character.
Yet it is impossible not To observe that at every
favorable moment, vast movements in advance have
been made, and that the ground thus gained has
ticle, the manufacture of which has been abshed
here, has, after that establishment, continued grad
ually to diminish in price, and that, without a
corresponding reduction in the wages Of labor,
which, indeed, could not be diminished by reason
of an increased demand for it. Statements are an
nexed, marked IL, exhibiting instances Of
this result.
These facts lead irresistby to the conclusion that
our labor becomes so much more efficient by use
acquired skill, enlarged establishments, and new
facilities derived from Inventions that the differ
encc in price between IL and the foreign labor, how.
ever serious an obstacle 10 successful competition
Will become less so with every year OF our activity
in the same branches of industry; and that il by
means follows that labor must be worse paid be-
cause its products sold cheaper that be-
cause labor is better paid, its products must be sold
dearcr.
| All that is wanting is a general determination
that industry shall be encouraged and supported
IN the home production and manufacture of iron,
WOOL cotton, sugar, and other staples, and that
the Legislation necessary TO sustain IL shall be firm.
! ly adopted and persevercd in
will proceed TO state the nature Of the modifca-
tons which IL appears expcdient TO make in the ex-
listing tariff, and If required will hereafter present
a plan in detail.
! /. The rates Of duty arc, in my opinion, toe
! low, especially on articles similar to our own
staples. conceive that the revenue has suffered
materially from this circumstance Indeed, am
compelled 10 believe that il would have been great
ly diminished but for the extraordinary demand
for brcadstuffs and provisions produced by the
famine in Europe in 1917 and 10 great extent CON
tnued by the short crop abroad in 1S4S. (Sec
statement marked NJ, hereto anncxed.) Even under
these favorable circumstances, the average
from woollens, cottons, bempcn goods, iron sugar,
hemp manufactured, salt and coal. has fallen
under the act of 1876 from Ia l62, 607 TO ,392,
62l 3d. taking the average from the receipts of 1916
! 1916, and those Of lS45-lS49; being an average
diminuton OF 769, 9S2 so, will be seen by table
marked (N), hereto annexed; the loss of annual
/ revenue being as follows