[278](971){192}

Alexander Hamilton

REPORT ON MANU A!TURE"

#E!EM$ER %& 1791 [Pa'e n(m)er* +rom Selected Writings] (Page numbers from Annals of Congress) {Pa'e n(m)er* +rom Works of Hamilton} ",anned -an(ar.& 2//1 +rom 0rimar. *o(r,e*1 !onta,t 2leind3(nion1ed( 4it5 6(e*tion& ,omment*& ,orre,tion*1
!omm(ni,ated to t5e Ho(*e o+ Re0re*entati7e*& #e,em)er %& 1791

[To t5e "0ea2er o+ t5e Ho(*e o+ Re0re*entati7e*8] T5e "e,retar. o+ t5e Trea*(r. in o)edien,e to t5e order o+ t5e Ho(*e o+ Re0re*entati7e*& o+ t5e 1%t5 da. o+ -an(ar. 179/& 5a* a00lied 5i* attention& at a* earl. a 0eriod a* 5i* ot5er d(tie* 4o(ld 0ermit& to t5e *()9e,t o+ Man(+a,t(re*: and 0arti,(larl. to t5e mean* o+ 0romotin' *(,5 a* 4ill tend to render t5e United "tate*& inde0endent on +orei'n nation*& +or militar. and ot5er e**ential *(00lie*1 And 5e t5ere(0on re*0e,t+(ll. *()mit* t5e +ollo4in' Re0ort8 T5e ex0edien,. o+ en,o(ra'in' man(+a,t(re* in t5e United "tate*& 45i,5 4a* not lon' *in,e deemed 7er. 6(e*tiona)le& a00ear* at t5i* time to )e 0rett. 'enerall. admitted1 T5e em)arra**ment*& 45i,5 5a7e o)*tr(,ted t5e 0ro're** o+ o(r external trade& {19;} 5a7e led to *erio(* re+le,tion* on t5e ne,e**it. o+ enlar'in' t5e *05ere o+ o(r dome*ti, ,ommer,e8 t5e re*tri,ti7e re'(lation*& 45i,5 in +orei'n mar2et* a)ri'e t5e 7ent o+ t5e in,rea*in' *(r0l(* o+ o(r A'ri,(lt(ral 0rod(,e& *er7e to )e'et an earne*t de*ire& t5at a more exten*i7e demand +or t5at *(r0l(* ma. )e ,reated at 5ome8 And t5e ,om0lete *(,,e**& 45i,5 5a* re4arded man(+a,t(rin' enter0ri*e& in *ome 7al(a)le )ran,5e*& ,on*0irin' 4it5 t5e 0romi*in' *.m0tom*& 45i,5 attend *ome le** mat(re e**a.*& in ot5er*& 9(*ti+. a 5o0e& t5at t5e o)*ta,le* to t5e 'ro4t5 o+ t5i* *0e,ie* o+ ind(*tr. are le** +ormida)le t5an t5e. 4ere (972) a00re5ended to )e: and t5at it i* not di++i,(lt to +ind& in it* +(rt5er exten*ion: a +(ll indemni+i,ation +or an. external di*ad7anta'e*& 45i,5 are or ma. )e ex0erien,ed& a* 4ell a* an a,,e**ion o+ re*o(r,e*& +a7o(ra)le to national inde0enden,e and *a+et.1 T5ere *till are& ne7ert5ele**& re*0e,ta)le 0atron* o+ o0inion*& (n+riendl. to t5e en,o(ra'ement o+ man(+a,t(re*1 T5e +ollo4in' are& *()*tantiall.& t5e ar'(ment*& ). 45i,5 t5e*e o0inion* are de+ended1 <=n e7er. ,o(ntr. >*a. t5o*e 45o entertain t5em? A'ri,(lt(re i* t5e mo*t )ene+i,ial and productive o)9e,t o+ 5(man ind(*tr.1 T5i* 0o*ition& 'enerall.& i+ not (ni7er*all. tr(e& a00lie* 4it5 0e,(liar em05a*i* to t5e United "tate*& on a,,o(nt o+ t5eir immen*e tra,t* o+ +ertile territor.& (nin5a)ited and (nim0ro7ed1 Not5in' ,an a++ord *o [279] ad7anta'eo(* an em0lo.ment +or ,a0ital and la)o(r& a* t5e ,on7er*ion o+ t5i* exten*i7e 4ilderne** into ,(lti7ated +arm*1 Not5in' e6(all. 4it5 t5i*& ,an ,ontri)(te to t5e 0o0(lation& *tren't5 and real ri,5e* o+ t5e ,o(ntr.1@ @To endea7or ). t5e extraordinar. 0atrona'e o+ Ao7ernment& to a,,elerate t5e 'ro4t5 o+ man(+a,t(re*& i* in +a,t& to endea7or& ). +or,e and art& to tran*+er t5e nat(ral ,(rrent o+ ind(*tr.& +rom a more& to a le** )ene+i,ial ,5annel1 B5ate7er 5a* *(,5 a tenden,. m(*t ne,e**aril. )e (n4i*e1 =ndeed it ,an 5ardl. e7er )e 4i*e in a 'o7ernment& to attem0t to 'i7e a dire,tion to t5e ind(*tr. o+ it* ,itiCen*1 T5i* (nder t5e 6(i,2D*i'5ted '(idan,e o+ 0ri7ate

intere*t& 4ill& i+ le+t to it*el+& in+alli)l. +ind it* o4n 4a. to t5e mo*t 0ro+ita)le em0lo.ment: and it i* ). {19E} *(,5 em0lo.ment& t5at t5e 0()li, 0ro*0erit. 4ill )e mo*t e++e,t(all. 0romoted1 To lea7e ind(*tr. to it*el+& t5ere+ore& i*& in almo*t e7er. ,a*e& t5e *o(nde*t a* 4ell a* t5e *im0le*t 0oli,.1F <T5i* 0oli,. i* not onl. re,ommended to t5e United "tate*& ). ,on*ideration* 45i,5 a++e,t all nation*& it i*& in a manner& di,tated to t5em ). t5e im0erio(* +or,e o+ a 7er. 0e,(liar *it(ation1 T5e *mallne** o+ t5eir 0o0(lation ,om0ared 4it5 t5eir territor. DD t5e ,on*tant all(rement* to emi'ration +rom t5e *ettled to t5e (n*ettled 0art* o+ t5e ,o(ntr. DD t5e +a,ilit.& 4it5 45i,5 t5e le** inde0endent ,ondition o+ an arti*an ,an )e ex,5an'ed +or t5e more inde0endent ,ondition o+ a +armer& t5e*e and *imilar ,a(*e* ,on*0ire to 0rod(,e& and +or a len't5 o+ time m(*t ,ontin(e to o,,a*ion& a *,ar,it. o+ 5and* +or man(+a,t(rin' o,,(0ation& and dearne** o+ la)or 'enerall.1 To t5e*e di*ad7anta'e* +or t5e 0ro*e,(tion o+ man(+a,t(re*& a de+i,ien,. o+ 0e,(niar. ,a0ital )ein' added& t5e 0ro*0e,t o+ a *(,,e**+(l ,om0etition 4it5 t5e man(+a,t(re* o+ E(ro0e m(*t )e re'arded a* little le** t5an de*0erate1 Exten*i7e man(+a,t(re* ,an onl. )e t5e o++*0rin' o+ a red(ndant& at lea*t o+ a +(ll 0o0(lation1 Till t5e latter *5all ,5ara,teri*e t5e *it(ation o+ t5i* ,o(ntr.& Gti* 7ain to 5o0e +or t5e +ormer1F <=+ ,ontrar. to t5e nat(ral ,o(r*e o+ t5in'*& an (n*ea*ona)le and 0remat(re *0rin' ,an )e 'i7en to ,ertain +a)ri,*& ). 5ea7. d(tie*& 0ro5i)ition*& )o(ntie*& or ). ot5er +or,ed ex0edient*: t5i* 4ill onl. )e to *a,ri+i,e t5e intere*t* o+ t5e ,omm(nit. (973) to t5o*e o+ 0arti,(lar ,la**e*1 $e*ide* t5e mi*dire,tion o+ la)o(r& a 7irt(al mono0ol. 4ill )e 'i7en to t5e 0er*on* em0lo.ed on *(,5 +a)ri,*: and an en5an,ement o+ 0ri,e& t5e ine7ita)le ,on*e6(en,e o+ e7er. mono0ol.& m(*t )e de+ra.ed at t5e ex0en,e o+ t5e ot5er 0art* o+ t5e *o,iet.1 =t i* +ar 0re+era)le& t5at t5o*e 0er*on* *5o(ld )e en'a'ed in t5e ,(lti7ation o+ t5e eart5& and t5at 4e *5o(ld 0ro,(re& in ex,5an'e +or it* 0rod(,tion*& t5e ,ommoditie*& 4it5 45i,5 +orei'ner* are a)le to *(00l. (* in 'reater 0er+e,tion& and (0on )etter term*1F [28/] T5i* mode o+ rea*onin' i* +o(nded (0on +a,t* and 0rin,i0le*& 45i,5 5a7e ,ertainl. re*0e,ta)le 0reten*ion*1 =+ it 5ad 'o7erned t5e ,ond(,t o+ nation*& more 'enerall. t5an it 5a* done& t5ere {19%} i* room to *(00o*e& t5at it mi'5t 5a7e ,arried t5em +a*ter to 0ro*0erit. and 'reatne**& t5an t5e. 5a7e attained& ). t5e 0(r*(it o+ maxim* too 4idel. o00o*ite1 Mo*t 'eneral t5eorie*& 5o4e7er& admit o+ n(mero(* ex,e0tion*& and t5ere are +e4& i+ an.& o+ t5e 0oliti,al 2ind& 45i,5 do not )lend a ,on*idera)le 0ortion o+ error& 4it5 t5e tr(t5* t5e. in,(l,ate1 =n order to an a,,(rate 9(d'ement 5o4 +ar t5at 45i,5 5a* )een 9(*t *tated o('5t to )e deemed lia)le to a *imilar im0(tation& it i* ne,e**ar. to ad7ert ,are+(ll. to t5e ,on*ideration*& 45i,5 0lead in +a7o(r o+ man(+a,t(re*& and 45i,5 a00ear to re,ommend t5e *0e,ial and 0o*iti7e en,o(ra'ement o+ t5em: in ,ertain ,a*e*& and (nder ,ertain rea*ona)le limitation*1 =t o('5t readil. to )e ,on,eded& t5at t5e ,(lti7ation o+ t5e eart5 a* t5e 0rimar. and mo*t ,ertain *o(r,e o+ national *(00l. DD a* t5e immediate and ,5ie+ *o(r,e o+ *()*i*ten,e to man DD a* t5e 0rin,i0al *o(r,e o+ t5o*e material* 45i,5 ,on*tit(te t5e n(triment o+ ot5er 2ind* o+ la)or DD a* in,l(din' a *tate mo*t +a7o(ra)le to t5e +reedom and inde0enden,e o+ t5e 5(man mind DD one& 0er5a0*& mo*t ,ond(,i7e to t5e m(lti0li,ation o+ t5e 5(man *0e,ie* DD 5a* intrinsically a strong claim to pre-eminence over every other kind of industry. $(t& t5at it 5a* a title to an. t5in' li2e an ex,l(*i7e 0redile,tion& in an. ,o(ntr.& o('5t to )e admitted 4it5 'reat ,a(tion1 T5at it i* e7en more 0rod(,ti7e t5an e7er. ot5er )ran,5 o+ =nd(*tr. re6(ire* more e7iden,e& t5an 5a* .et )een 'i7en in

*(00ort o+ t5e 0o*ition1 T5at it* real intere*t*& 0re,io(* and im0ortant a* 4it5o(t t5e 5el0 o+ exa''eration& t5e. tr(l. are& 4ill )e ad7an,ed& rat5er t5an in9(red ). t5e d(e en,o(ra'ement o+ man(+a,t(re*& ma.& it i* )elie7ed& )e *ati*+a,toril. demon*trated1 And it i* al*o )elie7ed t5at t5e ex0edien,. o+ *(,5 en,o(ra'ement in a 'eneral 7ie4 ma. )e *5e4n to )e re,ommended ). t5e mo*t ,o'ent and 0er*(a*i7e moti7e* o+ national 0oli,.1 =t 5a* )een maintained& t5at A'ri,(lt(re i*& not onl.& t5e mo*t 0rod(,ti7e& )(t t5e onl. 0rod(,ti7e *0e,ie* o+ ind(*tr.1 T5e realit. o+ t5i* *(''e*tion in eit5er a*0e,t& 5a*& 5o4e7er& not )een 7eri+ied ). an. a,,(rate detail o+ +a,t* and ,al,(lation*: and t5e 'eneral ar'(ment*& 45i,5 are add(,ed to 0ro7e it& are rat5er *()til and 0aradoxi,al& t5an *olid or ,on7in,in'1 {19H} T5o*e 45i,5 maintain it* ex,l(*i7e 0rod(,ti7ene** are to t5i* e++e,t8 (974) Ia)o(r& )e*to4ed (0on t5e ,(lti7ation o+ land 0rod(,e* eno('5& [281] not onl. to re0la,e all t5e ne,e**ar. ex0en,e* in,(rred in t5e )(*ine**& and to maintain t5e 0er*on* 45o are em0lo.ed in it& )(t to a++ord to'et5er 4it5 t5e ordinary profit on t5e *to,2 or ,a0ital o+ t5e armer& a nett *(r0l(*& or rent +or t5e landlord or 0ro0rietor o+ t5e *oil1 $(t t5e la)or o+ Arti+i,er* doe* not5in' more& t5an re0la,e t5e "to,2 45i,5 em0lo.* t5em >or 45i,5 +(rni*5e* material* tool* and 4a'e*? and .ield t5e ordinary profit (0on t5at "to,21 =t .ield* not5in' e6(i7alent to t5e rent o+ land1 Neit5er doe* it add an. t5in' to t5e total value o+ t5e whole annual produce o+ t5e land and la)o(r o+ t5e ,o(ntr.1 T5e additional 7al(e 'i7en to t5o*e 0art* o+ t5e 0rod(,e o+ land& 45i,5 are 4ro('5t into man(+a,t(re*& i* ,o(nterD )alan,ed ). t5e 7al(e o+ t5o*e ot5er 0art* o+ t5at 0rod(,e& 45i,5 are ,on*(med ). t5e man(+a,t(rer*1 =t ,an t5ere+ore onl. )e ). *a7in'& or parsimony not ). t5e 0o*iti7e productiveness o+ t5eir la)o(r& t5at t5e ,la**e* o+ Arti+i,er* ,an in an. de'ree a('ment t5e re7en(e o+ t5e "o,iet.1 To t5i* it 5a* )een an*4ered DD 1 <T5at ina*m(,5 a* it i* a,2no4led'ed& t5at man(+a,t(rin' la)o(r re0rod(,e* a 7al(e e6(al to t5at 45i,5 i* ex0ended or ,on*(med in ,arr.in' it on& and ,ontin(e* in exi*ten,e t5e ori'inal "to,2 or ,a0ital em0lo.ed DD it o('5t on t5at a,,o(nt alone& to e*,a0e )ein' ,on*idered a* 45oll. (n0rod(,ti7e8 T5at t5o('5 it *5o(ld )e admitted& a* alle'ed& t5at t5e ,on*(m0tion o+ t5e 0rod(,e o+ t5e *oil& ). t5e ,la**e* o+ Arti+i,er* or Man(+a,t(rer*& i* exa,tl. e6(al to t5e 7al(e added ). t5eir la)o(r to t5e material* (0on 45i,5 it i* exerted: .et it 4o(ld not t5en,e +ollo4& t5at it added not5in' to t5e Re7en(e o+ t5e "o,iet.& or to t5e a''re'ate 7al(e o+ t5e ann(al 0rod(,e o+ it* land and la)o(r1 =+ t5e ,on*(m0tion +or an. 'i7en 0eriod amo(nted to a given sum and t5e increased 7al(e o+ t5e 0rod(,e man(+a,t(red& in t5e *ame 0eriod& to a like sum, t5e total amo(nt o+ t5e ,on*(m0tion and 0rod(,tion d(rin' t5at 0eriod& 4o(ld )e e6(al to t5e two sums, and ,on*e6(entl. do()le t5e 7al(e o+ t5e a'ri,(lt(ral {197}0rod(,e ,on*(med1 And t5o('5 t5e in,rement o+ 7al(e 0rod(,ed ). t5e ,la**e* o+ Arti+i,er* *5o(ld at no time ex,eed t5e 7al(e o+ t5e 0rod(,e o+ t5e land ,on*(med ). t5em& .et t5ere 4o(ld )e at e7er. moment& in ,on*e6(en,e o+ t5eir la)o(r& a 'reater 7al(e o+ 'ood* in t5e mar2et t5an 4o(ld exi*t inde0endent o+ it1F 2 DD <T5at t5e 0o*ition& t5at Arti+i,er* ,an a('ment t5e re7en(e o+ a "o,iet.& onl. ). 0ar*imon.& i* tr(e& in no ot5er *en*e& t5an in one& 45i,5 i* e6(all. a00li,a)le to H(*)andmen or !(lti7ator*1 =t ma. )e ali2e a++irmed o+ all t5e*e ,la**e*& t5at t5e +(nd a,6(ired ). t5eir la)or and de*tined +or t5eir *(00ort i* not& in an ordinar. 4a.& more t5an e6(al to it1 And 5en,e it 4ill +ollo4& t5at a('mentation* o+ t5e 4ealt5 or ,a0ital o+ t5e

,omm(nit. >ex,e0t in t5e in*tan,e* o+ *ome extraordinar. [282] dexterit. or *2ill ,an onl. 0ro,eed& 4it5 re*0e,t to an. o+ t5em& +rom t5e *a7in'* o+ t5e more t5ri+t. and 0ar*imonio(*1@ ; DD <T5at t5e ann(al 0rod(,e o+ t5e land and la)o(r o+ a ,o(ntr. ,an onl. )e en,rea*ed& in t4o 4a.* DD ). *ome im0ro7ement in t5e productive (975) powers o+ t5e (*e+(l la)o(r& 45i,5 a,t(all. exi*t* 4it5in it& or ). *ome in,rea*e in t5e 6(antit. o+ *(,5 la)o(r8 T5at 4it5 re'ard to t5e +ir*t& t5e la)o(r o+ Arti+i,er* )ein' ,a0a)le o+ 'reater *()di7i*ion and *im0li,it. o+ o0eration& t5an t5at o+ !(lti7ator*& it i* *(*,e0ti)le& in a 0ro0ortiona)l. 'reater de'ree& o+ im0ro7ement in it* productive powers, 45et5er to )e deri7ed +rom an a,,e**ion o+ "2ill& or +rom t5e a00li,ation o+ in'enio(* ma,5iner.: in 45i,5 0arti,(lar& t5ere+ore& t5e la)o(r em0lo.ed in t5e ,(lt(re o+ land ,an 0retend to no ad7anta'e o7er t5at en'a'ed in man(+a,t(re*8 T5at 4it5 re'ard to an a('mentation o+ t5e 6(antit. o+ (*e+(l la)o(r& t5i*& ex,l(din' ad7entitio(* ,ir,(m*tan,e*& m(*t de0end e**entiall. (0on an in,rea*e o+ capital, 45i,5 a'ain m(*t de0end (0on t5e *a7in'* made o(t o+ t5e re7en(e* o+ t5o*e& 45o +(rni*5 or mana'e that, 45i,5 i* at an. time em0lo.ed& 45et5er in A'ri,(lt(re& or in Man(+a,t(re*& or in an. ot5er 4a.1F $(t 45ile t5e exclusive 0rod(,ti7ene** o+ A'ri,(lt(ral la)o(r 5a* )een t5(* denied and re+(ted& t5e *(0eriorit. o+ it* 0rod(,ti7ene** 5a* )een ,on,eded 4it5o(t 5e*itation1 A* t5i* ,on,e**ion {198} in7ol7e* a 0oint o+ ,on*idera)le ma'nit(de& in relation to maxim* o+ 0()li, admini*tration& t5e 'ro(nd* on 45i,5 it re*t* are 4ort5. o+ a di*tin,t and 0arti,(lar examination1 One o+ t5e ar'(ment* made (*e o+& in *(00ort o+ t5e idea ma. )e 0rono(n,ed )ot5 6(aint and *(0er+i,ial1 =t amo(nt* to t5i* DD T5at in t5e 0rod(,tion* o+ t5e *oil& nat(re ,oDo0erate* 4it5 man: and t5at t5e e++e,t o+ t5eir 9oint la)o(r m(*t )e 'reater t5an t5at o+ t5e la)o(r o+ man alone1 T5i* 5o4e7er& i* +ar +rom )ein' a ne,e**ar. in+eren,e1 =t i* 7er. ,on,ei7a)le& t5at t5e la)or o+ man alone laid o(t (0on a 4or2& re6(irin' 'reat *2ill and art to )rin' it to 0er+e,tion& ma. )e more 0rod(,ti7e& in value, t5an t5e la)o(r o+ nat(re and man ,om)ined& 45en dire,ted to4ard* more *im0le o0eration* and o)9e,t*8 And 45en it i* re,olle,ted to 45at an extent t5e A'en,. o+ nat(re& in t5e a00li,ation o+ t5e me,5ani,al 0o4er*& i* made a(xiliar. to t5e 0ro*e,(tion o+ man(+a,t(re*& t5e *(''e*tion& 45i,5 5a* )een noti,ed& lo*e* e7en t5e a00earan,e o+ 0la(*i)ilit.1 =t mi'5t al*o )e o)*er7ed& 4it5 a ,ontrar. 7ie4& t5at t5e la)o(r em0lo.ed in A'ri,(lt(re i* in a 'reat mea*(re 0eriodi,al and o,,a*ional& de0endin' on *ea*on*& lia)le to 7ario(* and lon' intermi**ion*: 45ile t5at o,,(0ied in man. man(+a,t(re* i* ,on*tant and [28;] re'(lar& extendin' t5ro('5 t5e .ear& em)ra,in' in *ome in*tan,e* ni'5t a* 4ell a* da.1 =t i* al*o 0ro)a)le& t5at t5ere are amon' t5e ,(lti7ator* o+ land more exam0le* o+ remi**ne**& t5an amon' arti+i,er*1 T5e +armer& +rom t5e 0e,(liar +ertilit. o+ 5i* land& or *ome ot5er +a7ora)le ,ir,(m*tan,e& ma. +re6(entl. o)tain a li7eli5ood& e7en 4it5 a ,on*idera)le de'ree o+ ,arele**ne** in t5e mode o+ ,(lti7ation: )(t t5e arti*an ,an 4it5 di++i,(lt. e++e,t t5e *ame o)9e,t& 4it5o(t exertin' 5im*el+ 0rett. e6(all. 4it5 all t5o*e& 45o are en'a'ed in t5e *ame 0(r*(it1 And i+ it ma. li2e4i*e )e a**(med a* a +a,t& t5at man(+a,t(re* o0en a 4ider +ield to exertion* o+ in'en(it. t5an a'ri,(lt(re& it 4o(ld not )e a *trained (976) ,on9e,t(re& t5at t5e la)o(r em0lo.ed in t5e +ormer& )ein' at on,e more constant, more (ni+orm and more in'enio(*& t5an t5at 45i,5 i* em0lo.ed in t5e latter& 4ill )e +o(nd at t5e *ame time more 0rod(,ti7e1 {199} $(t it i* not meant to la. *tre** on o)*er7ation* o+ t5i* nat(re t5e. o('5t onl. to *er7e a* a ,o(nter)alan,e to t5o*e o+ a *imilar

,om0lexion1 !ir,(m*tan,e* *o 7a'(e and 'eneral& a* 4ell a* *o a)*tra,t& ,an a++ord little in*tr(,tion in a matter o+ t5i* 2ind1 Anot5er& and t5at 45i,5 *eem* to )e t5e 0rin,i0al ar'(ment o++ered +or t5e *(0erior 0rod(,ti7ene** o+ A'ri,(lt(ral la)o(r& t(rn* (0on t5e alle'ation& t5at la)o(r em0lo.ed in man(+a,t(re* .ield* not5in' e6(i7alent to t5e rent o+ land: or to t5at nett *(r0l(*& a* it i* ,alled& 45i,5 a,,r(e* to t5e 0ro0rietor o+ t5e *oil1 $(t t5i* di*tin,tion& im0ortant a* it 5a* )een deemed& a00ear* rat5er verbal t5an substantial. =t i* ea*il. di*,erni)le& t5at 45at in t5e +ir*t in*tan,e i* di7ided into t4o 0art* (nder t5e denomination* o+ t5e ordinary profit o+ t5e "to,2 o+ t5e +armer and rent to t5e landlord& i* in t5e *e,ond in*tan,e (nited (nder t5e 'eneral a00ellation o+ t5e ordinary profit on t5e "to,2 o+ t5e Underta2er: and t5at t5i* +ormal or 7er)al di*tri)(tion ,on*tit(te* t5e 45ole di++eren,e in t5e t4o ,a*e*1 =t *eem* to 5a7e )een o7erloo2ed& t5at t5e land i* it*el+ a "to,2 or ,a0ital& ad7an,ed or lent ). it* o4ner to t5e o,,(0ier or tenant& and t5at t5e rent 5e re,ei7e* i* onl. t5e ordinar. 0ro+it o+ a ,ertain "to,2 in land& not mana'ed ). t5e 0ro0rietor 5im*el+& )(t ). anot5er to 45om 5e lend* or let* it& and 45o on 5i* 0art ad7an,e* a *e,ond ,a0ital to *to,2 J im0ro7e t5e land& (0on 45i,5 5e al*o re,ei7e* t5e (*(al 0ro+it1 T5e rent o+ t5e landlord and t5e 0ro+it o+ t5e +armer are t5ere+ore not5in' more t5an t5e ordinary profits of two ,a0ital* )elon'in' to two di++erent 0er*on*& and (nited in t5e ,(lti7ation o+ a +arm8 A* in t5e ot5er ,a*e& t5e *(r0l(* 45i,5 ari*e* (0on an. man(+a,tor.& a+ter re0la,in' t5e ex0en,e* o+ ,arr.in' it on& an*4er* to t5e ordinar. 0ro+it* o+ one or more ,a0ital* en'a'ed in t5e 0ro*e,(tion o+ *(,5 man(+a,tor.1 =t i* *aid one [28E] or more ,a0ital*: )e,a(*e in +a,t& t5e *ame t5in' 45i,5 i* ,ontem0lated& in t5e ,a*e o+ t5e +arm& *ometime* 5a00en* in t5at o+ a man(+a,tor.1 T5ere i* one& 45o +(rni*5e* a 0art o+ t5e ,a0ital& or lend* a 0art o+ t5e mone.& ). 45i,5 it i* ,arried on& and anot5er& 45o ,arrie* {2//} it on 4it5 t5e addition o+ 5i* o4n ,a0ital1 O(t o+ t5e *(r0l(*& 45i,5 remain*& a+ter de+ra.in' ex0en,e*& an intere*t i* 0aid to t5e mone. lender +or t5e 0ortion o+ t5e ,a0ital +(rni*5ed ). 5im& 45i,5 exa,tl. a'ree* 4it5 t5e rent 0aid to t5e landlord: and t5e re*id(e o+ t5at *(r0l(* ,on*tit(te* t5e 0ro+it o+ t5e (nderta2er or man(+a,t(rer& and a'ree* 4it5 45at i* denominated t5e ordinar. 0ro+it* on t5e "to,2 o+ t5e +armer1 $ot5 to'et5er ma2e t5e ordinar. 0ro+it* o+ t4o ,a0ital* [em0lo.ed in a man(+a,tor.: a* in t5e ot5er ,a*e t5e rent o+ t5e landlord and t5e re7en(e o+ t5e +armer ,om0o*e t5e ordinar. 0ro+it* o+ t4o !a0ital*] em0lo.ed in t5e ,(lti7ation o+ a +arm1 T5e rent t5ere+ore a,,r(in' to t5e 0ro0rietor o+ t5e land& +ar +rom )ein' a ,riterion o+ exclusive 0rod(,ti7ene**& a* 5a* )een ar'(ed& i* no ,riterion e7en o+ *(0erior (977) 0rod(,ti7ene**1 T5e 6(e*tion m(*t *till )e& 45et5er t5e *(r0l(*& a+ter de+ra.in' ex0en,e*& o+ a given capital, em0lo.ed in t5e purchase and improvement o+ a 0ie,e o+ land& i* 'reater or le**& t5an t5at o+ a li2e ,a0ital em0lo.ed in t5e 0ro*e,(tion o+ a man(+a,tor.8 or 45et5er t5e whole value produced +rom a given capital and a given uantity of labour, em0lo.ed in one 4a.& )e 'reater or le**& t5an t5e whole value produced +rom an e ual capital and an e ual uantity of labour em0lo.ed in t5e ot5er 4a.8 or rat5er& 0er5a0* 45et5er t5e )(*ine** o+ A'ri,(lt(re or t5at o+ Man(+a,t(re* 4ill .ield t5e 'reate*t 0rod(,t& a,,ordin' to a compound ratio o+ t5e 6(antit. o+ t5e !a0ital and t5e 6(antit. o+ la)o(r& 45i,5 are em0lo.ed in t5e one or in t5e ot5er1 T5e *ol(tion o+ eit5er o+ t5e*e 6(e*tion* i* not ea*.: it in7ol7e* n(mero(* and ,om0li,ated detail*& de0endin' on an a,,(rate 2no4led'e o+ t5e o)9e,t* to )e ,om0ared1 =t i* not 2no4n t5at t5e ,om0ari*on 5a* e7er .et )een made (0on *(++i,ient data 0ro0erl. a*,ertained and anali*ed1 To )e a)le to

ma2e it on t5e 0re*ent o,,a*ion 4it5 *ati*+a,tor. 0re,i*ion 4o(ld demand more 0re7io(* en6(ir. and in7e*ti'ation& t5an t5ere 5a* )een 5it5erto eit5er lei*(re or o00ort(nit. to a,,om0li*51 "ome e**a.* 5o4e7er 5a7e )een made to4ard* a,6(irin' t5e re6(i*ite in+ormation: 45i,5 5a7e rat5er *er7ed to t5ro4 do()t (0on& t5an to ,on+irm t5e H.0ot5e*i*& (nder examination8 $(t {2/1} it o('5t to )e a,2no4led'ed& t5at t5e. 5a7e )een too little di7er*i+ied& and are too im0er+e,t& to a(t5ori*e a de+initi7e ,on,l(*ion eit5er 4a.: leadin' rat5er to 0ro)a)le ,on9e,t(re t5an to ,ertain ded(,tion1 T5e. render it 0ro)a)le& t5at t5ere are 7ario(* )ran,5e* o+ man(+a,t(re*& in 45i,5 [28%] a 'i7en !a0ital 4ill .ield a 'reater total 0rod(,t& and a ,on*idera)l. 'reater nett 0rod(,t& t5an an e6(al ,a0ital in7e*ted in t5e 0(r,5a*e and im0ro7ement o+ land*: and t5at t5ere are al*o some )ran,5e*& in 45i,5 )ot5 t5e gross and t5e nett 0rod(,e 4ill ex,eed t5at o+ A'ri,(lt(ral ind(*tr.: a,,ordin' to a ,om0o(nd ratio o+ ,a0ital and la)o(r8 $(t it i* on t5i* la*t 0oint& t5at t5ere a00ear* to )e t5e 'reate*t room +or do()t1 =t i* +ar le** di++i,(lt to in+er 'enerall.& t5at t5e nett produce o+ !a0ital en'a'ed in man(+a,t(rin' enter0ri*e* i* 'reater t5an t5at o+ !a0ital en'a'ed in A'ri,(lt(re1 =n *tatin' t5e*e re*(lt*& t5e 0(r,5a*e and im0ro7ement o+ land*& (nder 0re7io(* ,(lti7ation are alone ,ontem0lated1 T5e ,om0ari*on i* more in +a7o(r o+ A'ri,(lt(re& 45en it i* made 4it5 re+eren,e to t5e *ettlement o+ ne4 and 4a*te land*: )(t an ar'(ment dra4n +rom *o tem0orar. a ,ir,(m*tan,e ,o(ld 5a7e no 4ei'5t in determinin' t5e 'eneral 6(e*tion ,on,ernin' t5e 0ermanent relati7e 0rod(,ti7ene** o+ t5e t4o *0e,ie* o+ ind(*tr.1 Ho4 +ar it o('5t to in+l(en,e t5e 0oli,. o+ t5e United "tate*& on t5e *,ore o+ 0arti,(lar *it(ation& 4ill )e ad7erted to in anot5er 0la,e1 T5e +ore'oin' *(''e*tion* are not designed to inculcate an opinion that manufacturing industry is more productive than that of !griculture. T5e. are intended rat5er to *5e4 t5at t5e re7er*e o+ t5i* 0ro0o*ition i* not a*,ertained: t5at t5e 'eneral ar'(ment* 45i,5 are )ro('5t to e*ta)li*5 it are not *ati*+a,tor.: and ,on*e6(entl. t5at a *(00o*ition o+ t5e *(0erior 0rod(,ti7ene** o+ Tilla'e o('5t to )e no o)*ta,le to li*tenin' to an. *()*tantial ind(,ement* to t5e en,o(ra'ement o+ man(+a,t(re*& 45i,5 ma. )e ot5er4i*e 0er,ei7ed to exi*t& t5ro('5 an a00re5en*ion& t5at t5e. ma. 5a7e a tenden,. to di7ert la)o(r +rom a more to a le** 0ro+ita)le em0lo.ment1 =t i* extremel. 0ro)a)le& t5at on a +(ll and a,,(rate de7ello0ment o+ t5e matter& on t5e 'ro(nd o+ +a,t and ,al,(lation& it 4o(ld )e di*,o7ered t5at t5ere i* no material di++eren,e )et4een t5e a''re'ate 0rod(,ti7ene** o+ t5e one& and (978) o+ t5e ot5er 2ind o+ ind(*tr.: and t5at t5e 0ro0riet. o+ t5e en,o(ra'ement*& 45i,5 ma. in an. ,a*e )e 0ro0o*ed to )e 'i7en to eit5er o('5t to )e determined (0on ,on*ideration* irrelati7e to an. ,om0ari*on o+ t5at nat(re1 == $(t 4it5o(t ,ontendin' +or t5e *(0erior 0rod(,ti7ene** o+ Man(+a,t(rin' =nd(*tr.& it ma. ,ond(,e to a )etter 9(d'ment o+ t5e 0oli,.& 45i,5 o('5t to )e 0(r*(ed re*0e,tin' it* en,o(ra'ement& {2/2} to ,ontem0late t5e *()9e,t& (nder *ome additional a*0e,t*& tendin' not onl. to ,on+irm t5e idea& t5at t5i* 2ind o+ ind(*tr. 5a* )een im0ro0erl. re0re*ented a* (n0rod(,ti7e in it*el+: )(t [to] e7in,e in addition t5at t5e e*ta)li*5ment and di++(*ion o+ man(+a,t(re* 5a7e t5e e++e,t o+ renderin' t5e total ma** o+ (*e+(l and 0rod(,ti7e la)or in a ,omm(nit.& [28H] greater than it would otherwise be. =n 0ro*e,(tin' t5i* di*,(**ion& it ma. )e ne,e**ar. )rie+l. to re*(me and re7ie4 *ome o+ t5e to0i,*& 45i,5 5a7e )een alread. to(,5ed1

To a++irm& t5at t5e la)o(r o+ t5e Man(+a,t(rer i* (n0rod(,ti7e& )e,a(*e 5e ,on*(me* a* m(,5 o+ t5e 0rod(,e o+ land& a* 5e add* 7al(e to t5e ra4 material* 45i,5 5e man(+a,t(re*& i* not )etter +o(nded& t5an it 4o(ld )e to a++irm& t5at t5e la)o(r o+ t5e +armer& 45i,5 +(rni*5e* material* to t5e man(+a,t(rer& i* (n0rod(,ti7e& )ecause he consumes an e ual value of manufactured articles. Ea,5 +(rni*5e* a ,ertain 0ortion o+ t5e 0rod(,e o+ 5i* la)or to t5e ot5er& and ea,5 de*tro.* a ,orre*0ondent 0ortion o+ t5e 0rod(,e o+ t5e la)o(r o+ t5e ot5er1 =n t5e mean time& t5e maintenan,e o+ t4o !itiCen*& in*tead o+ one& i* 'oin' on: t5e "tate 5a* t4o mem)er* in*tead o+ one: and t5e. to'et5er ,on*(me t4i,e t5e 7al(e o+ 45at i* 0rod(,ed +rom t5e land1 =+ in*tead o+ a +armer and arti+i,er& t5ere 4ere a +armer onl.& 5e 4o(ld )e (nder t5e ne,e**it. o+ de7otin' a 0art o+ 5i* la)o(r to t5e +a)ri,ation o+ ,loat5in' and ot5er arti,le*& 45i,5 5e 4o(ld 0ro,(re o+ t5e arti+i,er& in t5e ,a*e o+ t5ere )ein' *(,5 a 0er*on: and o+ ,o(r*e 5e 4o(ld )e a)le to de7ote le** la)or to t5e ,(lti7ation o+ 5i* +arm: and 4o(ld dra4 +rom it a 0ro0ortiona)l. le** 0rod(,t1 T5e 45ole 6(antit. o+ 0rod(,tion& in t5i* *tate o+ t5in'*& in 0ro7i*ion*& ra4 material* and man(+a,t(re*& 4o(ld ,ertainl. not ex,eed in 7al(e t5e amo(nt o+ 45at 4o(ld )e 0rod(,ed in 0ro7i*ion* and ra4 material* onl.& i+ t5ere 4ere an arti+i,er a* 4ell a* a +armer1 A'ain DD i+ t5ere 4ere )ot5 an arti+i,er and a +armer& t5e latter 4o(ld )e le+t at li)ert. to 0(r*(e ex,l(*i7el. t5e ,(lti7ation o+ 5i* +arm1 A 'reater 6(antit. o+ 0ro7i*ion* and ra4 material* 4o(ld o+ ,o(r*e )e 0rod(,ed DD e6(al at lea*t DD a* 5a* )een alread. o)*er7ed& to t5e 45ole amo(nt o+ t5e 0ro7i*ion*& ra4 material* {2/;} and man(+a,t(re*& 45i,5 4o(ld exi*t on a ,ontrar. *(00o*ition1 T5e arti+i,er& at t5e *ame time 4o(ld )e 'oin' on in t5e 0rod(,tion o+ man(+a,t(red ,ommoditie*: to an amo(nt *(++i,ient not onl. to re0a. t5e +armer& in t5o*e ,ommoditie*& +or t5e 0ro7i*ion* and material* 45i,5 4ere 0ro,(red +rom 5im& )(t to +(rni*5 t5e Arti+i,er 5im*el+ 4it5 a *(00l. o+ *imilar ,ommoditie* +or 5i* o4n (*e1 T5(* t5en& t5ere 4o(ld )e t4o 6(antitie* or 7al(e* in exi*ten,e& in*tead o+ one: and t5e re7en(e and ,on*(m0tion (979) 4o(ld )e do()le in one ,a*e& 45at it 4o(ld )e in t5e ot5er1 =+ in 0la,e o+ )ot5 t5e*e *(00o*ition*& t5ere 4ere *(00o*ed to )e t4o +armer*& and no arti+i,er& ea,5 o+ 45om a00lied a 0art o+ 5i* la)o(r to t5e ,(lt(re o+ land& and anot5er 0art to t5e +a)ri,ation o+ Man(+a,t(re* DD in t5i* ,a*e& t5e 0ortion o+ t5e la)o(r o+ )ot5 )e*to4ed (0on land 4o(ld 0rod(,e t5e *ame 6(antit. o+ 0ro7i*ion* [287] and ra4 material* onl.& a* 4o(ld )e 0rod(,ed ). t5e intire *(m o+ t5e la)o(r o+ one a00lied in t5e *ame manner& and t5e 0ortion o+ t5e la)o(r o+ )ot5 )e*to4ed (0on man(+a,t(re*& 4o(ld 0rod(,e t5e *ame 6(antit. o+ man(+a,t(re* onl.& a* 4o(ld )e 0rod(,ed ). t5e intire *(m o+ t5e la)o(r o+ one a00lied in t5e *ame manner1 Hen,e t5e 0rod(,e o+ t5e la)o(r o+ t5e t4o +armer* 4o(ld not )e 'reater t5an t5e 0rod(,e o+ t5e la)o(r o+ t5e +armer and arti+i,er: and 5en,e& it re*(lt*& t5at t5e la)o(r o+ t5e arti+i,er i* a* 0o**iti7el. 0rod(,ti7e a* t5at o+ t5e +armer& and& a* 0o*iti7el.& a('ment* t5e re7en(e o+ t5e "o,iet.1 T5e la)o(r o+ t5e Arti+i,er re0la,e* to t5e +armer t5at 0ortion o+ 5i* la)o(r& 4it5 45i,5 5e 0ro7ide* t5e material* o+ ex,5an'e 4it5 t5e Arti+i,er& and 45i,5 5e 4o(ld ot5er4i*e 5a7e )een ,om0elled to a00l. to man(+a,t(re*8 and 45ile t5e Arti+i,er t5(* ena)le* t5e +armer to enlar'e 5i* *to,2 o+ A'ri,(lt(ral ind(*tr.& a 0ortion o+ 45i,5 5e 0(r,5a*e* +or 5i* o4n (*e& he also supplies himself with the manufactured articles of which he stands in need. He doe* *till more DD $e*ide* t5i* e6(i7alent 45i,5 5e 'i7e* +or t5e 0ortion o+ A'ri,(lt(ral la)o(r ,on*(med ). 5im& and t5i* *(00l. o+ man(+a,t(red ,ommoditie* +or 5i* o4n

,on*(m0tion DD 5e +(rni*5e* *till a *(r0l(*& 45i,5 ,om0en*ate* +or t5e (*e o+ t5e !a0ital ad7an,ed eit5er ). 5im*el+ or *ome ot5er 0er*on& +or ,arr.in' on t5e )(*ine**1 T5i* i* t5e ordinar. 0ro+it o+ t5e {2/E} *to,2 em0lo.ed in t5e man(+a,tor.& and i*& in e7er. *en*e& a* e++e,ti7e an addition to t5e in,ome o+ t5e "o,iet.& a* t5e rent o+ land1 T5e 0rod(,e o+ t5e la)o(r o+ t5e Arti+i,er ,on*e6(entl.& ma. )e re'arded a* ,om0o*ed o+ t5ree 0art*: one ). 45i,5 t5e 0ro7i*ion* +or 5i* *()*i*ten,e and t5e material* +or 5i* 4or2 are 0(r,5a*ed o+ t5e +armer& one ). 45i,5 5e *(00lie* 5im*el+ 4it5 man(+a,t(red ne,e**arie*& and a t5ird 45i,5 ,on*tit(te* t5e 0ro+it on t5e "to,2 em0lo.ed1 T5e t4o la*t 0ortion* *eem to 5a7e )een o7erloo2ed in t5e *.*tem& 45i,5 re0re*ent* man(+a,t(rin' ind(*tr. a* )arren and (n0rod(,ti7e1 =n t5e ,o(r*e o+ t5e 0re,edin' ill(*tration*& t5e 0rod(,t* o+ e6(al 6(antitie* o+ t5e la)o(r o+ t5e +armer and arti+i,er 5a7e )een treated a* i+ e6(al to ea,5 ot5er1 $(t t5i* i* not to )e (nder*tood a* intendin' to a**ert an. *(,5 0re,i*e e6(alit.1 =t i* merel. a manner o+ ex0re**ion ado0ted +or t5e *a2e o+ *im0li,it. and 0er*0i,(it.1 B5et5er t5e 7al(e o+ t5e 0rod(,e o+ t5e la)o(r o+ t5e +armer )e *ome45at more or le**& t5an t5at o+ t5e arti+i,er& i* not material to t5e main *,o0e o+ t5e ar'(ment& 45i,5 5it5erto 5a* onl. aimed at *5e4in'& t5at t5e one& a* 4ell a* t5e ot5er& o,,a*ion* a 0o**iti7e a('mentation o+ t5e total 0rod(,e and re7en(e o+ t5e "o,iet.1 [288]{2/E} (980) =t i* no4 0ro0er to 0ro,eed a *te0 +(rt5er& and to en(merate t5e 0rin,i0al ,ir,(m*tan,e*& +rom 45i,5 it ma. )e in+erred DD T5at man(+a,t(rin' e*ta)li*5ment* not onl. o,,a*ion a 0o**iti7e a('mentation o+ t5e Prod(,e and Re7en(e o+ t5e "o,iet.& )(t t5at t5e. ,ontri)(te e**entiall. to renderin' t5em 'reater t5an t5e. ,o(ld 0o**i)l. )e& 4it5o(t *(,5 e*ta)li*5ment*1 T5e*e ,ir,(m*tan,e* are DD 11 T5e di7i*ion o+ Ia)o(r1 21 An exten*ion o+ t5e (*e o+ Ma,5iner.1 ;1 Additional em0lo.ment to ,la**e* o+ t5e ,omm(nit. not ordinaril. en'a'ed in t5e )(*ine**1 E1 T5e 0romotin' o+ emi'ration +rom +orei'n !o(ntrie*1 %1 T5e +(rni*5in' 'reater *,o0e +or t5e di7er*it. o+ talent* and di*0o*ition* 45i,5 di*,riminate men +rom ea,5 ot5er1 H1 T5e a++ordin' a more am0le and 7ario(* +ield +or enter0ri*e1 {2/%} 71 T5e ,reatin' in *ome in*tan,e* a ne4& and *e,(rin' in all& a more ,ertain and *tead. demand +or t5e *(r0l(* 0rod(,e o+ t5e *oil1 Ea,5 o+ t5e*e ,ir,(m*tan,e* 5a* a ,on*idera)le in+l(en,e (0on t5e total ma** o+ ind(*trio(* e++ort in a ,omm(nit.1 To'et5er& t5e. add to it a de'ree o+ ener'. and e++e,t& 45i,5 are not ea*il. ,on,ei7ed1 "ome ,omment* (0on ea,5 o+ t5em& in t5e order in 45i,5 t5e. 5a7e )een *tated& ma. *er7e to ex0lain t5eir im0ortan,e1 ". !s to the #ivision of $abour. =t 5a* 9(*tl. )een o)*er7ed& t5at t5ere i* *,ar,el. an. t5in' o+ 'reater moment in t5e e,onom. o+ a nation& t5an t5e 0ro0er di7i*ion o+ la)o(r1 T5e *e0aration o+ o,,(0ation* ,a(*e* ea,5 to )e ,arried to a m(,5 'reater 0er+e,tion& t5an it ,o(ld 0o**i)le a,6(ire& i+ t5e. 4ere )lended1 T5i* ari*e* 0rin,i0all. +rom t5ree ,ir,(m*tan,e*1 l*t DD T5e 'reater *2ill and dexterit. nat(rall. re*(ltin' +rom a ,on*tant and (ndi7ided a00li,ation to a *in'le o)9e,t1 =t i* e7ident& t5at t5e*e 0ro0ertie* m(*t in,rea*e& in 0ro0ortion to t5e *e0aration and *im0li+i,ation o+ o)9e,t* and t5e *teadine** o+ t5e attention de7oted to ea,5: and m(*t )e le**& in 0ro0ortion to t5e

,om0li,ation o+ o)9e,t*& and t5e n(m)er amon' 45i,5 t5e attention i* di*tra,ted1 2nd1 T5e e,onom. o+ time DD ). a7oidin' t5e lo** o+ it& in,ident to a +re6(ent tran*ition +rom one o0eration to anot5er o+ a di++erent nat(re1 T5i* de0end* on 7ario(* ,ir,(m*tan,e* DD t5e tran*ition it*el+ DD t5e orderl. di*0o*ition o+ t5e im0liment*& ma,5ine* and material* em0lo.ed in t5e o0eration to )e relin6(i*5ed DD t5e 0re0arator. *te0* to t5e ,ommen,ement o+ a ne4 one DD t5e interr(0tion o+ t5e im0(l*e& 45i,5 t5e mind o+ t5e 4or2man a,6(ire*& +rom )ein' en'a'ed in a 0arti,(lar o0eration DD t5e di*tra,tion* 5e*itation* and rel(,tan,e*& [289] 45i,5 attend t5e 0a**a'e +rom one 2ind o+ )(*ine** to anot5er1 ;rd1 An exten*ion o+ t5e (*e o+ Ma,5iner.1 A man o,,(0ied on a *in'le o)9e,t 4ill 5a7e it more in 5i* 0o4er& and 4ill )e more nat(rall. led to exert 5i* ima'ination in de7i*in' met5od* {2/H}to +a,ilitate and a)ri'e la)o(r& t5an i+ 5e 4ere 0er0lexed ). a 7ariet. o+ inde0endent and di**imilar o0eraD (981) tion*1 $e*ide* t5i*& t5e +a)ri,ation o+ Ma,5ine*& in n(mero(* in*tan,e*& )e,omin' it*el+ a di*tin,t trade& t5e Arti*t 45o +ollo4* it& 5a* all t5e ad7anta'e* 45i,5 5a7e )een en(merated& +or im0ro7ement in 5i* 0arti,(lar art: and in )ot5 4a.* t5e in7ention and a00li,ation o+ ma,5iner. are extended1 And +rom t5e*e ,a(*e* (nited& t5e mere *e0aration o+ t5e o,,(0ation o+ t5e ,(lti7ator& +rom t5at o+ t5e Arti+i,er& 5a* t5e e++e,t o+ a('mentin' t5e productive powers o+ la)o(r& and 4it5 t5em& t5e total ma** o+ t5e 0rod(,e or re7en(e o+ a !o(ntr.1 =n t5i* *in'le 7ie4 o+ t5e *()9e,t& t5ere+ore& t5e (tilit. o+ Arti+i,er* or Man(+a,t(rer*& to4ard* 0romotin' an in,rea*e o+ 0rod(,ti7e ind(*tr.& i* a00arent1 %. !s to an extension of the use of &achinery a point which though partly anticipated re uires to be placed in one or two additional lights. T5e em0lo.ment o+ Ma,5iner. +orm* an item o+ 'reat im0ortan,e in t5e 'eneral ma** o+ national ind(*tr.1 KTi* an arti+i,ial +or,e )ro('5t in aid o+ t5e nat(ral +or,e o+ man: and& to all t5e 0(r0o*e* o+ la)o(r& i* an in,rea*e o+ 5and*: an a,,e**ion o+ *tren't5& unencumbered too by the expence of maintaining the laborer. Ma. it not t5ere+ore )e +airl. in+erred& t5at t5o*e o,,(0ation*& 45i,5 'i7e 'reate*t *,o0e to t5e (*e o+ t5i* a(xiliar.& ,ontri)(te mo*t to t5e 'eneral "to,2 o+ ind(*trio(* e++ort& and& in ,on*e6(en,e& to t5e 'eneral 0rod(,t o+ ind(*tr.L =t *5all )e ta2en +or 'ranted& and t5e tr(t5 o+ t5e 0o*ition re+erred to o)*er7ation& t5at man(+a,t(rin' 0(r*(it* are *(*,e0ti)le in a 'reater de'ree o+ t5e a00li,ation o+ ma,5iner.& t5an t5o*e o+ A'ri,(lt(re1 =+ *o all t5e di++eren,e i* lo*t to a ,omm(nit.& 45i,5& in*tead o+ man(+a,t(rin' +or it*el+& 0ro,(re* t5e +a)ri,* re6(i*ite to it* *(00l. +rom ot5er !o(ntrie*1 T5e *()*tit(tion o+ +orei'n +or dome*ti, man(+a,t(re* i* a tran*+er to +orei'n nation* o+ t5e ad7anta'e* a,,r(in' +rom t5e em0lo.ment o+ Ma,5iner.& in t5e mode* in 45i,5 it i* ,a0a)le o+ )ein' em0lo.ed& 4it5 mo*t (tilit. and to t5e 'reate*t extent1 {2/7} T5e !otton Mill in7ented in En'land& 4it5in t5e la*t t4ent. .ear*& i* a *i'nal ill(*tration o+ t5e 'eneral 0ro0o*ition& 45i,5 5a* )een 9(*t ad7an,ed1 =n ,on*e6(en,e o+ it& all t5e di++erent 0ro,e**e* +or *0inin' !otton are 0er+ormed ). mean* o+ Ma,5ine*& 45i,5 are [29/] (t in motion ). 4ater& and attended ,5ie+l. ). 4omen and !5ildren: [and ). a *maller] n(m)er o+ [0er*on*& in t5e 45ole& t5an are] re6(i*ite in t5e ordinar. mode o+ *0innin'1 And it i* an ad7anta'e o+ 'reat moment t5at t5e o0eration* o+ t5i* mill ,ontin(e 4it5 ,on7enien,e& d(rin' t5e ni'5t& a* 4ell a* t5ro('5 t5e da.1 T5e 0rodi'io(* a++e,t o+ *(,5 a Ma,5ine i* ea*il. ,on,ei7ed1 To t5i* in7ention i* to )e attri)(ted

e**entiall. t5e immen*e 0ro're**& 45i,5 5a* )een *o *(ddenl. made in Areat $ritain in t5e 7ario(* +a)ri,* o+ !otton1 '. !s to the additional employment of classes of the community, not ordinarily engaged in the particular business. T5i* i* not amon' t5e lea*t 7al(a)le o+ t5e mean*& ). 45i,5 man(+a,t(rin' in*tit(tion* ,onD (982) tri)(te to a('ment t5e 'eneral *to,2 o+ ind(*tr. and 0rod(,tion1 =n 0la,e* 45ere t5o*e in*tit(tion* 0re7ail& )e*ide* t5e 0er*on* re'(larl. en'a'ed in t5em& t5e. a++ord o,,a*ional and extra em0lo.ment to ind(*trio(* indi7id(al* and +amilie*& 45o are 4illin' to de7ote t5e lei*(re re*(ltin' +rom t5e intermi**ion* o+ t5eir ordinar. 0(r*(it* to ,ollateral la)o(r*& a* a re*o(r,e o+ m(lti0l.in' t5eir a,6(i*ition* or [t5eir] en9o.ment*1 T5e 5(*)andman 5im*el+ ex0erien,e* a ne4 *o(r,e o+ 0ro+it and *(00ort +rom t5e en,rea*ed ind(*tr. o+ 5i* 4i+e and da('5ter*: in7ited and *tim(lated ). t5e demand* o+ t5e nei'5)orin' man(+a,torie*1 $e*ide* t5i* ad7anta'e o+ o,,a*ional em0lo.ment to ,la**e* 5a7in' di++erent o,,(0ation*& t5ere i* anot5er o+ a nat(re allied to it [and] o+ a *imilar tenden,.1 T5i* i* DD t5e em0lo.ment o+ 0er*on* 45o 4o(ld ot5er4i*e )e idle >and in man. ,a*e* a )(rt5en on t5e ,omm(nit.?& eit5er +rom t5e ).a** o+ tem0er& 5a)it& in+irmit. o+ )od.& or *ome ot5er ,a(*e& indi*0o*in'& or di*6(ali+.in' t5em +or t5e toil* o+ t5e !o(ntr.1 =t i* 4ort5. o+ 0arti,(lar remar2& t5at& in 'eneral& 4omen and !5ildren are rendered more {2/8} (*e+(l and t5e latter more earl. (*e+(l ). man(+a,t(rin' e*ta)li*5ment*& t5an t5e. 4o(ld ot5er4i*e )e1 O+ t5e n(m)er o+ 0er*on* em0lo.ed in t5e !otton Man(+a,torie* o+ Areat $ritain& it i* ,om0(ted t5at EM7 nearl. are 4omen and ,5ildren: o+ 45om t5e 'reate*t 0ro0ortion are ,5ildren and man. o+ t5em o+ a 7er. tender a'e1 And t5(* it a00ear* to )e one o+ t5e attri)(te* o+ man(+a,t(re*& and one o+ no *mall ,on*e6(en,e& to 'i7e o,,a*ion to t5e exertion o+ a 'reater 6(antit. o+ =nd(*tr.& e7en ). t5e same number o+ 0er*on*& 45ere t5e. 5a00en to 0re7ail& t5an 4o(ld exi*t& i+ t5ere 4ere no *(,5 e*ta)li*5ment*1 (. !s to the promoting of emigration from foreign )ountries. Men rel(,tantl. 6(it one ,o(r*e o+ o,,(0ation and li7eli5ood +or anot5er& (nle** in7ited to it ). 7er. a00arent and 0roximate ad7anta'e*1 Man.& 45o 4o(ld 'o +rom one ,o(ntr. to anot5er& i+ t5e. 5ad [291] a 0ro*0e,t o+ ,ontin(in' 4it5 more )ene+it t5e ,allin'*& to 45i,5 t5e. 5a7e )een ed(,ated& 4ill o+ten not )e tem0ted to ,5an'e t5eir *it(ation& ). t5e 5o0e o+ doin' )etter& in *ome ot5er 4a.1 Man(+a,t(rer*& 45o li*tenin' to t5e 0o4er+(l in7itation* o+ a )etter 0ri,e +or t5eir +a)ri,*& or t5eir la)o(r& o+ 'reater ,5ea0ne** o+ 0ro7i*ion* and ra4 material*& o+ an exem0tion +rom t5e ,5ie+ 0art o+ t5e taxe* )(rt5en* and re*traint*& 45i,5 t5e. end(re in t5e old 4orld& o+ 'reater 0er*onal inde0enden,e and ,on*e6(en,e& (nder t5e o0eration o+ a more e6(al 'o7ernment& and o+ 45at i* +ar more 0re,io(* t5an mere reli'io(* toleration DD a 0er+e,t e6(alit. o+ reli'io(* 0ri7ile'e*: 4o(ld 0ro)a)l. +lo,2 +rom E(ro0e to t5e United "tate* to 0(r*(e t5eir o4n trade* or 0ro+e**ion*& i+ t5e. 4ere on,e made *en*i)le o+ t5e ad7anta'e* t5e. 4o(ld en9o.& and 4ere in*0ired 4it5 an a**(ran,e o+ en,o(ra'ement and em0lo.ment& 4ill& 4it5 di++i,(lt.& )e ind(,ed to tran*0lant t5em*el7e*& 4it5 a 7ie4 to )e,omin' !(lti7ator* o+ Iand1 =+ it )e tr(e t5en& t5at it i* t5e intere*t o+ t5e United "tate* to o0en e7er. 0o**i)le a7en(e to (983) emi'ration +rom a)road& it a++ord* a 4ei'5t. ar'(ment +or t5e en,o(ra'ement o+ man(+a,t(re*: {2/9} 45i,5 +or t5e rea*on* 9(*t a**i'ned& 4ill 5a7e t5e *tron'e*t tenden,. to m(lti0l. t5e ind(,ement* to it1

Here i* 0er,ei7ed an im0ortant re*o(r,e& not onl. +or extendin' t5e 0o0(lation& and 4it5 it t5e (*e+(l and 0rod(,ti7e la)o(r o+ t5e ,o(ntr.& )(t li2e4i*e +or t5e 0ro*e,(tion o+ man(+a,t(re*& 4it5o(t ded(,tin' +rom t5e n(m)er o+ 5and*& 45i,5 mi'5t ot5er4i*e )e dra4n to tilla'e: and e7en +or t5e indemni+i,ation o+ A'ri,(lt(re +or *(,5 a* mi'5t 5a00en to )e di7erted +rom it1 Man.& 45om Man(+a,t(rin' 7ie4* 4o(ld ind(,e to emi'rate& 4o(ld a+ter4ard* .ield to t5e tem0tation*& 45i,5 t5e 0arti,(lar *it(ation o+ t5i* !o(ntr. 5old* o(t to A'ri,(lt(ral 0(r*(it*1 And 45ile A'ri,(lt(re 4o(ld in ot5er re*0e,t* deri7e man. *i'nal and (nmin'led ad7anta'e*& +rom t5e 'ro4t5 o+ man(+a,t(re*& it i* a 0ro)lem 45et5er it 4o(ld 'ain or lo*e& a* to t5e arti,le o+ t5e n(m)er o+ 0er*on* em0lo.ed in ,arr.in' it on1 *. !s to the furnishing greater scope for the diversity of talents and dispositions, which discriminate men from each other. T5i* i* a m(,5 more 0o4er+(l mean o+ a('mentin' t5e +(nd o+ national =nd(*tr. t5an ma. at +ir*t *i'5t a00ear1 =t i* a 9(*t o)*er7ation& t5at mind* o+ t5e *tron'e*t and mo*t a,ti7e 0o4er* +or t5eir 0ro0er o)9e,t* +all )elo4 medio,rit. and la)o(r 4it5o(t e++e,t& i+ ,on+ined to (n,on'enial 0(r*(it*1 And it i* t5en,e to )e in+erred& t5at t5e re*(lt* o+ 5(man exertion ma. )e immen*el. in,rea*ed ). di7er*i+.in' it* o)9e,t*1 B5en all t5e di++erent 2ind* o+ ind(*tr. o)tain in a ,omm(nit.& ea,5 indi7id(al ,an +ind 5i* 0ro0er element& and ,an ,all [292] into a,ti7it. t5e 45ole 7i'o(r o+ 5i* nat(re1 And t5e ,omm(nit. i* )ene+itted ). t5e *er7i,e* o+ it* re*0e,ti7e mem)er*& in t5e manner& in 45i,5 ea,5 ,an *er7e it 4it5 mo*t e++e,t1 =+ t5ere )e an.t5in' in a remar2 o+ten to )e met 4it5 DD namel. t5at t5ere i*& in t5e 'eni(* o+ t5e 0eo0le o+ t5i* ,o(ntr.& a 0e,(liar a0tit(de +or me,5ani, im0ro7ement*& it 4o(ld o0erate a* a +or,i)le rea*on +or 'i7in' o00ort(nitie* to t5e exer,i*e o+ t5at *0e,ie* o+ talent& ). t5e 0ro0a'ation o+ man(+a,t(re*1 {21/} +. !s to the affording a more ample and various field for enterprise. T5i* al*o i* o+ 'reater ,on*e6(en,e in t5e 'eneral *,ale o+ national exertion& t5an mi'5t 0er5a0* on a *(0er+i,ial 7ie4 )e *(00o*ed& and 5a* e++e,t* not alto'et5er di**imilar +rom t5o*e o+ t5e ,ir,(m*tan,e la*t noti,ed1 To ,5eri*5 and *tim(late t5e a,ti7it. o+ t5e 5(man mind& ). m(lti0l.in' t5e o)9e,t* o+ enter0ri*e& i* not amon' t5e lea*t ,on*idera)le o+ t5e ex0edient*& ). 45i,5 t5e 4ealt5 o+ a nation ma. )e 0romoted1 E7en t5in'* in t5em*el7e* not 0o*iti7el. ad7anta'eo(*& *ometime* )e,ome *o& ). t5eir tenden,. to 0ro7o2e exertion1 E7er. ne4 *,ene& 45i,5 i* o0ened to t5e )(*. nat(re o+ man to ro(*e and exert it*el+& i* t5e addition o+ a ne4 ener'. to t5e 'eneral *to,2 o+ e++ort1 T5e *0irit o+ enter0ri*e& (*e+(l and 0roli+i, a* it i*& m(*t ne,e**aril. )e ,ontra,ted or ex0anded in 0ro0ortion to t5e *im0li,it. or 7ariet. o+ t5e o,D (984) ,(0ation* and 0rod(,tion*& 45i,5 are to )e +o(nd in a "o,iet.1 =t m(*t )e le** in a nation o+ mere ,(lti7ator*& t5an in a nation o+ ,(lti7ator* and mer,5ant*: le** in a nation o+ ,(lti7ator* and mer,5ant*& t5an in a nation o+ ,(lti7ator*& arti+i,er* and mer,5ant*1 ,. !s to the creating, in some instances, a new, and securing in all a more certain and steady demand for the surplus produce of the soil. T5i* i* amon' t5e mo*t im0ortant o+ t5e ,ir,(m*tan,e* 45i,5 5a7e )een indi,ated1 =t i* a 0rin,i0al mean& ). 45i,5 t5e e*ta)li*5ment o+ man(+a,t(re* ,ontri)(te* to an a('mentation o+ t5e 0rod(,e or re7en(e o+ a ,o(ntr.& and 5a* an immediate and dire,t relation to t5e 0ro*0erit. o+ A'ri,(lt(re1

=t i* e7ident& t5at t5e exertion* o+ t5e 5(*)andman 4ill )e *tead. or +l(,t(atin'& 7i'oro(* or +ee)le& in 0ro0ortion to t5e *teadine** or +l(,t(ation& ade6(atene**& or inade6(atene** o+ t5e mar2et* on 45i,5 5e m(*t de0end& +or t5e 7ent o+ t5e *(r0l(*& 45i,5 ma. )e 0rod(,ed ). 5i* la)o(r: and t5at *(,5 *(r0l(* in t5e ordinar. ,o(r*e o+ t5in'* 4ill )e 'reater or le** in t5e *ame 0ro0ortion1 {211} or t5e 0(r0o*e o+ t5i* 7ent& a dome*ti, mar2et i* 'reatl. to )e [29;] 0re+erred to a +orei'n one: )e,a(*e it i* in t5e nat(re o+ t5in'*& +ar more to )e relied (0on1 =t i* a 0rimar. o)9e,t o+ t5e 0oli,. o+ nation*& to )e a)le to *(00l. t5em*el7e* 4it5 *()*i*ten,e +rom t5eir o4n *oil*: and man(+a,t(rin' nation*& a* +ar a* ,ir,(m*tan,e* 0ermit& endea7or to 0ro,(re& +rom t5e *ame *o(r,e& t5e ra4 material* ne,e**ar. +or t5eir o4n +a)ri,*1 T5i* di*0o*ition& (r'ed ). t5e *0irit o+ mono0ol.& i* *ometime* e7en ,arried to an in9(di,io(* extreme1 =t *eem* not al4a.* to )e re,olle,ted& t5at nation*& 45o 5a7e neit5er mine* nor man(+a,t(re*& ,an onl. o)tain t5e man(+a,t(red arti,le*& o+ 45i,5 t5e. *tand in need& ). an ex,5an'e o+ t5e 0rod(,t* o+ t5eir *oil*: and t5at& i+ t5o*e 45o ,an )e*t +(rni*5 t5em 4it5 *(,5 arti,le* are (n4illin' to 'i7e a d(e ,o(r*e to t5i* ex,5an'e& t5e. m(*t o+ ne,e**it. ma2e e7er. 0o**i)le e++ort to man(+a,t(re +or t5em*el7e*& t5e e++e,t o+ 45i,5 i* t5at t5e man(+a,t(rin' nation* a)ri'e t5e nat(ral ad7anta'e* o+ t5eir *it(ation& t5ro('5 an (n4illin'ne** to 0ermit t5e A'ri,(lt(ral ,o(ntrie* to en9o. t5e ad7anta'e* o+ t5eir*& and *a,ri+i,e t5e intere*t* o+ a m(t(all. )ene+i,ial inter,o(r*e to t5e 7ain 0ro9e,t o+ selling every thing and buying nothing. $(t it i* al*o a ,on*e6(en,e o+ t5e 0oli,.& 45i,5 5a* )een noted& t5at t5e +orei'n demand +or t5e 0rod(,t* o+ A'ri,(lt(ral !o(ntrie*& i*& in a 'reat de'ree& rat5er ,a*(al and o,,a*ional& t5an ,ertain or ,on*tant1 To 45at extent in9(rio(* interr(0tion* o+ t5e demand +or *ome o+ t5e *ta0le ,ommoditie* o+ t5e United "tate*& ma. 5a7e )een ex0erien,ed& +rom t5at ,a(*e& m(*t )e re+erred to t5e 9(d'ment o+ t5o*e 45o are en'a'ed in ,arr.in' on t5e ,ommer,e o+ t5e ,o(ntr.: )(t it ma. )e *a+el. a**(med& t5at *(,5 interr(0tion* are at time* 7er. in,on7enientl. +elt& and t5at ,a*e* not (n+re6(entl. o,,(r& in 45i,5 mar2et* are *o ,on+ined and re*tri,ted& a* to render t5e demand 7er. (ne6(al to t5e *(00l.1 =nde0endentl. (985) li2e4i*e o+ t5e arti+i,ial im0ediment*& 45i,5 are ,reated ). t5e 0oli,. in 6(e*tion& t5ere are nat(ral ,a(*e* tendin' to render t5e external demand +or t5e *(r0l(* o+ A'ri,(lt(ral nation* a 0re,ario(* relian,e1 T5e di++eren,e* o+ *ea*on*& {212} in t5e ,o(ntrie*& 45i,5 are t5e ,on*(mer* ma2e immen*e di++eren,e* in t5e 0rod(,e o+ t5eir o4n *oil*& in di++erent .ear*: and ,on*e6(entl. in t5e de'ree* o+ t5eir ne,e**it. +or +orei'n *(00l.1 Plenti+(l 5ar7e*t* 4it5 t5em& e*0e,iall. i+ *imilar one* o,,(r at t5e *ame time in t5e ,o(ntrie*& 45i,5 are t5e +(rni*5er*& o,,a*ion o+ ,o(r*e a 'l(t in t5e mar2et* o+ t5e latter1 !on*iderin' 5o4 +a*t and 5o4 m(,5 t5e 0ro're** o+ ne4 *ettlement* in t5e United "tate* m(*t in,rea*e t5e *(r0l(* 0rod(,e o+ t5e *oil& and 4ei'5in' *erio(*l. t5e tenden,. o+ t5e *.*tem& 45i,5 0re7ail* [29E] amon' mo*t o+ t5e ,ommer,ial nation* o+ E(ro0e: 45ate7er de0enden,e ma. )e 0la,ed on t5e +or,e o+ nat(ral ,ir,(m*tan,e* to ,o(ntera,t t5e e++e,t* o+ an arti+i,ial 0oli,.: t5ere a00ear *tron' rea*on* to re'ard t5e +orei'n demand +or t5at *(r0l(* a* too (n,ertain a relian,e& and to de*ire a *()*tit(te +or it& in an exten*i7e dome*ti, mar2et1 To *e,(re *(,5 a mar2et& t5ere i* no ot5er ex0edient& t5an to 0romote man(+a,t(rin' e*ta)li*5ment*1 Man(+a,t(rer* 45o ,on*tit(te t5e mo*t n(mero(* ,la**& a+ter t5e !(lti7ator* o+ land& are +or t5at rea*on t5e 0rin,i0al ,on*(mer* o+ t5e *(r0l(* o+ t5eir la)o(r1

T5i* idea o+ an exten*i7e dome*ti, mar2et +or t5e *(r0l(* 0rod(,e o+ t5e *oil i* o+ t5e +ir*t ,on*e6(en,e1 =t i* o+ all t5in'*& t5at 45i,5 mo*t e++e,t(all. ,ond(,e* to a +lo(ri*5in' *tate o+ A'ri,(lt(re1 =+ t5e e++e,t o+ man(+a,torie* *5o(ld )e to deta,5 a 0ortion o+ t5e 5and*& 45i,5 4o(ld ot5er4i*e )e en'a'ed in Tilla'e& it mi'5t 0o**i)l. ,a(*e a *maller 6(antit. o+ land* to )e (nder ,(lti7ation )(t ). t5eir tenden,. to 0ro,(re a more ,ertain demand +or t5e *(r0l(* 0rod(,e o+ t5e *oil& t5e. 4o(ld& at t5e *ame time& ,a(*e t5e land* 45i,5 4ere in ,(lti7ation to )e )etter im0ro7ed and more 0rod(,ti7e1 And 45ile& ). t5eir in+l(en,e& t5e ,ondition o+ ea,5 indi7id(al +armer 4o(ld )e meliorated& t5e total ma** o+ A'ri,(lt(ral 0rod(,tion 4o(ld 0ro)a)l. )e in,rea*ed1 or t5i* m(*t e7identl. de0end a* m(,5& i+ not more& (0on t5e de'ree o+ im0ro7ement: t5an (0on t5e n(m)er o+ a,re* (nder ,(lt(re1 =t merit* 0arti,(lar o)*er7ation& t5at t5e m(lti0li,ation o+ man(+a,torie* not onl. +(rni*5e* a Mar2et +or t5o*e arti,le*& {21;} 45i,5 5a7e )een a,,(*tomed to )e 0rod(,ed in a)(ndan,e& in a ,o(ntr.: )(t it li2e4i*e ,reate* a demand +or *(,5 a* 4ere eit5er (n2no4n or 0rod(,ed in in,on*idera)le 6(antitie*1 T5e )o4el* a* 4ell a* t5e *(r+a,e o+ t5e eart5 are ran*a,2ed +or arti,le* 45i,5 4ere )e+ore ne'le,ted1 Animal*& Plant* and Mineral* a,6(ire an (tilit. and 7al(e& 45i,5 4ere )e+ore (nex0lored1 T5e +ore'oin' ,on*ideration* *eem *(++i,ient to e*ta)li*5& a* 'eneral 0ro0o*ition*& T5at it i* t5e intere*t o+ nation* to di7er*i+. t5e ind(*trio(* 0(r*(it* o+ t5e indi7id(al*& 45o ,om0o*e t5em DD T5at t5e e*ta)li*5ment o+ man(+a,t(re* i* ,al,(lated not onl. to (986) in,rea*e t5e 'eneral *to,2 o+ (*e+(l and 0rod(,ti7e la)o(r: )(t e7en to im0ro7e t5e *tate o+ A'ri,(lt(re in 0arti,(lar: ,ertainl. to ad7an,e t5e intere*t* o+ t5o*e 45o are en'a'ed in it1 T5ere are ot5er 7ie4*& t5at 4ill )e 5erea+ter ta2en o+ t5e *()9e,t& 45i,5& it i* ,on,ei7ed& 4ill *er7e to ,on+irm t5e*e in+eren,e*1 === Pre7io(*l. to a +(rt5er di*,(**ion o+ t5e o)9e,tion* to t5e en,o(ra'ement o+ man(+a,t(re* 45i,5 5a7e )een *tated& it 4ill )e o+ (*e to [29%] *ee 45at ,an )e *aid& in re+eren,e to t5e 0arti,(lar *it(ation o+ t5e United "tate*& a'ain*t t5e ,on,l(*ion* a00earin' to re*(lt +rom 45at 5a* )een alread. o++ered1 =t ma. )e o)*er7ed& and t5e idea i* o+ no in,on*idera)le 4ei'5t& t5at 5o4e7er tr(e it mi'5t )e& t5at a "tate& 45i,5 0o**e**in' lar'e tra,t* o+ 7a,ant and +ertile territor.& 4a* at t5e *ame time *e,l(ded +rom +orei'n ,ommer,e& 4o(ld +ind it* intere*t and t5e intere*t o+ A'ri,(lt(re& in di7ertin' a 0art o+ it* 0o0(lation +rom Tilla'e to Man(+a,t(re*: .et it 4ill not +ollo4& t5at t5e *ame i* tr(e o+ a "tate& 45i,5 5a7in' *(,5 7a,ant and +ertile territor.& 5a* at t5e *ame time am0le o00ort(nit. o+ 0ro,(rin' +rom a)road& on 'ood term*& all t5e +a)ri,* o+ 45i,5 it *tand* in need& +or t5e *(00l. o+ it* in5a)itant*1 T5e 0o4er o+ doin' t5i* at lea*t *e,(re* t5e 'reat ad7anta'e o+ a di7i*ion o+ la)o(r: lea7in' t5e +armer +ree to 0(r*(e ex,l(*i7el. t5e ,(lt(re o+ 5i* land& and ena)lin' 5im to 0ro,(re 4it5 it* 0rod(,t* t5e man(+a,t(red *(00lie* re6(i*ite eit5er to 5i* 4ant* or to 5i* en9o.ment*1 And t5o('5 it *5o(ld )e tr(e& t5at in *ettled ,o(ntrie*& t5e di7er*i+i,ation o+ =nd(*tr. i* ,ond(,i7e to an in,rea*e {21E} in t5e 0rod(,ti7e 0o4er* o+ la)o(r& and to an a('mentation o+ re7en(e and ,a0ital: .et it i* *,ar,el. ,on,ei7a)le t5at t5ere ,an )e an. [t5in'] o+ *o *olid and 0ermanent ad7anta'e to an (n,(lti7ated and (n0eo0led ,o(ntr. a* to ,on7ert it* 4a*te* into ,(lti7ated and in5a)ited di*tri,t*1 =+ t5e Re7en(e& in t5e mean time& *5o(ld )e le**& t5e !a0ital& in t5e e7ent& m(*t )e 'reater1

To t5e*e o)*er7ation*& t5e +ollo4in' a00ear* to )e a *ati*+a,tor. an*4er DD 11 =+ t5e *.*tem o+ 0er+e,t li)ert. to ind(*tr. and ,ommer,e 4ere t5e 0re7ailin' *.*tem o+ nation* DD t5e ar'(ment* 45i,5 di**(ade a ,o(ntr. in t5e 0redi,ament o+ t5e United "tate*& +rom t5e Cealo(* 0(r*(it* o+ man(+a,t(re* 4o(ld do()tle** 5a7e 'reat +or,e1 =t 4ill not )e a++irmed& t5at t5e. mi'5t not )e 0ermitted& 4it5 +e4 ex,e0tion*& to *er7e a* a r(le o+ national ,ond(,t1 =n *(,5 a *tate o+ t5in'*& ea,5 ,o(ntr. 4o(ld 5a7e t5e +(ll )ene+it o+ it* 0e,(liar ad7anta'e* to ,om0en*ate +or it* de+i,ien,ie* or di*ad7anta'e*1 =+ one nation 4ere in ,ondition to *(00l. man(+a,t(red arti,le* on )etter term* t5an anot5er& t5at ot5er mi'5t +ind an a)(ndant indemni+i,ation in a *(0erior ,a0a,it. to +(rni*5 t5e 0rod(,e o+ t5e *oil1 And a +ree ex,5an'e& m(t(all. )ene+i,ial& o+ t5e ,ommoditie* 45i,5 ea,5 4a* a)le to *(00l.& on t5e )e*t term*& mi'5t )e ,arried on )et4een t5em& *(00ortin' in +(ll 7i'o(r t5e ind(*tr. o+ ea,51 And t5o('5 t5e ,ir,(m*tan,e* 45i,5 5a7e )een mentioned and ot5er*& 45i,5 4ill )e (n+olded 5erea+ter render it 0ro)a)le& t5at nation* merel. A'ri,(lt(ral 4o(ld (987) not en9o. t5e *ame de'ree o+ o0(len,e& in 0ro0ortion to [29H] t5eir n(m)er*& a* t5o*e 45i,5 (nited man(+a,t(re* 4it5 a'ri,(lt(re: .et t5e 0ro're**i7e im0ro7ement o+ t5e land* o+ t5e +ormer mi'5t& in t5e end& atone +or an in+erior de'ree o+ o0(len,e in t5e mean time8 and in a ,a*e in 45i,5 o00o*ite ,on*ideration* are 0rett. e6(all. )alan,ed& t5e o0tion o('5t 0er5a0* al4a.* to )e& in +a7o(r o+ lea7in' =nd(*tr. to it* o4n dire,tion1 $(t t5e *.*tem 45i,5 5a* )een mentioned& i* +ar +rom ,5ara,teri*in' t5e 'eneral 0oli,. o+ Nation*1 T5e 0re7alent one 5a* )een re'(lated ). an o00o*ite *0irit1 T5e ,on*e6(en,e o+ it i*& {21%} t5at t5e United "tate* are to a ,ertain extent in t5e *it(ation o+ a ,o(ntr. 0re,l(ded +rom +orei'n !ommer,e1 T5e. ,an indeed& 4it5o(t di++i,(lt. o)tain +rom a)road t5e man(+a,t(red *(00lie*& o+ 45i,5 t5e. are in 4ant: )(t t5e. ex0erien,e n(mero(* and 7er. in9(rio(* im0ediment* to t5e emi**ion and 7ent o+ t5eir o4n ,ommoditie*1 Nor i* t5i* t5e ,a*e in re+eren,e to a *in'le +orei'n nation onl.1 T5e re'(lation* o+ *e7eral ,o(ntrie*& 4it5 45i,5 4e 5a7e t5e mo*t exten*i7e inter,o(r*e& t5ro4 *erio(* o)*tr(,tion* in t5e 4a. o+ t5e 0rin,i0al *ta0le* o+ t5e United "tate*1 =n *(,5 a 0o*ition o+ t5in'*& t5e United "tate* ,annot ex,5an'e 4it5 E(ro0e on e6(al term*: and t5e 4ant o+ re,i0ro,it. 4o(ld render t5em t5e 7i,tim o+ a *.*tem& 45i,5 *5o(ld ind(,e t5em to ,on+ine t5eir 7ie4* to A'ri,(lt(re and re+rain +rom Man(+a,t(re*1 A ,on*tant and en,rea*in' ne,e**it.& on t5eir 0art& +or t5e ,ommoditie* o+ E(ro0e& and onl. a 0artial and o,,a*ional demand +or t5eir o4n& in ret(rn& ,o(ld not )(t ex0o*e t5em to a *tate o+ im0o7eri*5ment& ,om0ared 4it5 t5e o0(len,e to 45i,5 t5eir 0oliti,al and nat(ral ad7anta'e* a(t5ori*e t5em to a*0ire1 Remar2* o+ t5i* 2ind are not made in t5e *0irit o+ ,om0laint1 GTi* +or t5e nation*& 45o*e re'(lation* are all(ded to& to 9(d'e +or t5em*el7e*& 45et5er& ). aimin' at too m(,5 t5e. do not lo*e more t5an t5e. 'ain1 GTi* +or t5e United "tate* to ,on*ider ). 45at mean* t5e. ,an render t5em*el7e* lea*t de0endent& on t5e ,om)ination*& ri'5t or 4ron' o+ +orei'n 0oli,.1 =t i* no *mall ,on*olation& t5at alread. t5e mea*(re* 45i,5 5a7e em)arra**ed o(r Trade& 5a7e a,,elerated internal im0ro7ement*& 45i,5 (0on t5e 45ole 5a7e )ettered o(r a++air*1 To di7er*i+. and extend t5e*e im0ro7ement* i* t5e *(re*t and *a+e*t met5od o+ indemni+.in' o(r*el7e* +or an. in,on7enien,e*& 45i,5 t5o*e or *imilar mea*(re* 5a7e a tenden,. to )e'et1 =+ E(ro0e 4ill not ta2e +rom (* t5e 0rod(,t* o+ o(r *oil& (0on term*

,on*i*tent 4it5 o(r intere*t& t5e nat(ral remed. i* to ,ontra,t a* +a*t a* 0o**i)le o(r 4ant* o+ 5er1 21 T5e ,on7er*ion o+ t5eir 4a*te into ,(lti7ated land* i* ,ertainl. a 0oint o+ 'reat moment in t5e 0oliti,al ,al,(lation* {21H} o+ t5e United [297] "tate*1 $(t t5e de'ree in 45i,5 t5i* ma. 0o**i)l. )e retarded ). t5e en,o(ra'ement o+ man(+a,torie* doe* not a00ear to ,o(nter7ail t5e 0o4er+(l ind(,ement* to a++ordin' t5at en,o(ra'ement1 An o)*er7ation made in anot5er 0la,e i* o+ a nat(re to 5a7e 'reat in+l(en,e (0on t5i* 6(e*tion1 =+ it ,annot )e denied& t5at t5e intere*t* e7en o+ (988) A'ri,(lt(re ma. )e ad7an,ed more ). 5a7in' *(,5 o+ t5e land* o+ a *tate a* are o,,(0ied (nder 'ood ,(lti7ation& t5an ). 5a7in' a 'reater 6(antit. o,,(0ied (nder a m(,5 in+erior ,(lti7ation& and i+ Man(+a,torie*& +or t5e rea*on* a**i'ned& m(*t )e admitted to 5a7e a tenden,. to 0romote a more *tead. and 7i'oro(* ,(lti7ation o+ t5e land* o,,(0ied t5an 4o(ld 5a00en 4it5o(t t5em DD it 4ill +ollo4& t5at t5e. are ,a0a)le o+ indemni+.in' a ,o(ntr. +or a dimin(tion o+ t5e 0ro're** o+ ne4 *ettlement*: and ma. *er7e to in,rea*e )ot5 t5e ,a0ital [7al(e] and t5e in,ome o+ it* land*& e7en t5o('5 t5e. *5o(ld a)ri'e t5e n(m)er o+ a,re* (nder Tilla'e1 $(t it doe*& ). no mean*& +ollo4& t5at t5e 0ro're** o+ ne4 *ettlement* 4o(ld )e retarded ). t5e exten*ion o+ Man(+a,t(re*1 T5e de*ire o+ )ein' an inde0endent 0ro0rietor o+ land i* +o(nded on *(,5 *tron' 0rin,i0le* in t5e 5(man )rea*t& t5at 45ere t5e o00ort(nit. o+ )e,omin' *o i* a* 'reat a* it i* in t5e United "tate*& t5e 0ro0ortion 4ill )e *mall o+ t5o*e& 45o*e *it(ation* 4o(ld ot5er4i*e lead to it& 45o 4o(ld )e di7erted +rom it to4ard* Man(+a,t(re*1 And it i* 5i'5l. 0ro)a)le& a* alread. intimated& t5at t5e a,,e**ion* o+ +orei'ner*& 45o ori'inall. dra4n o7er ). man(+a,t(rin' 7ie4* 4o(ld a+ter4ard* a)andon t5em +or A'ri,(lt(ral& 4o(ld )e more t5an e6(i7alent +or t5o*e o+ o(r o4n !itiCen*& 45o mi'5t 5a00en to )e deta,5ed +rom t5em1 T5e remainin' o)9e,tion* to a 0arti,(lar en,o(ra'ement o+ man(+a,t(re* in t5e United "tate* no4 re6(ire to )e examined1 One o+ t5e*e t(rn* on t5e 0ro0o*ition& t5at =nd(*tr.& i+ le+t to it*el+& 4ill nat(rall. +ind it* 4a. to t5e mo*t (*e+(l and 0ro+ita)le em0lo.ment8 45en,e it i* in+erred& t5at man(+a,t(re* 4it5o(t t5e aid o+ 'o7ernment 4ill 'ro4 (0 a* *oon and a* +a*t& a* t5e nat(ral *tate o+ t5in'* and t5e intere*t o+ t5e ,omm(nit. ma. re6(ire1 {217} A'ain*t t5e *olidit. o+ t5i* 5.0ot5e*i*& in t5e +(ll latit(de o+ t5e term*& 7er. ,o'ent rea*on* ma. )e o++ered1 T5e*e 5a7e relation to t5e *tron' in+l(en,e o+ 5a)it and t5e *0irit o+ imitation DD t5e +ear o+ 4ant o+ *(,,e** in (ntried enter0ri*e* DD t5e intrin*i, di++i,(ltie* in,ident to +ir*t e**a.* to4ard* a ,om0etition 4it5 t5o*e 45o 5a7e 0re7io(*l. attained to 0er+e,tion in t5e )(*ine** to )e attem0ted DD t5e )o(ntie* 0remi(m* and ot5er arti+i,ial en,o(ra'ement*& 4it5 45i,5 +orei'n nation* *e,ond t5e exertion* o+ t5eir o4n !itiCen* in t5e )ran,5e*& in 45i,5 t5e. are to )e ri7alled1 [298] Ex0erien,e tea,5e*& t5at men are o+ten *o m(,5 'o7erned ). 45at t5e. are a,,(*tomed to *ee and 0ra,ti,e& t5at t5e *im0le*t and mo*t o)7io(* im0ro7ement*& in t5e [mo*t] ordinar. o,,(0ation*& are ado0ted 4it5 5e*itation& rel(,tan,e and ). *lo4 'radation*1 T5e *0ontaneo(* tran*ition to ne4 0(r*(it*& in a ,omm(nit. lon' 5a)it(ated to di++erent one*& ma. )e ex0e,ted to )e attended 4it5 0ro0ortiona)l. 'reater di++i,(lt.1 B5en +ormer o,,(0ation* ,ea*ed to .ield a 0ro+it ade6(ate to t5e *()*i*ten,e o+ t5eir +ollo4er*& or 45en t5ere 4a* an a)*ol(te de+i,ien,. o+ em0lo.ment in t5em& o4in' to t5e *(0era)(ndan,e o+ 5and*& ,5an'e* 4o(ld en*(e: )(t t5e*e ,5an'e* 4o(ld )e li2el. (989) to )e more tard. t5an mi'5t ,on*i*t 4it5 t5e intere*t eit5er o+ indi7id(al* or o+ t5e "o,iet.1 =n man. ,a*e* t5e. 4o(ld not

5a00en& 45ile a )are *(00ort ,o(ld )e en*(red ). an ad5eren,e to an,ient ,o(r*e*: t5o('5 a re*ort to a more 0ro+ita)le em0lo.ment mi'5t )e 0ra,ti,a)le1 To 0rod(,e t5e de*irea)le ,5an'e*& a* earl. a* ma. )e ex0edient& ma. t5ere+ore re6(ire t5e in,itement and 0atrona'e o+ 'o7ernment1 T5e a00re5en*ion o+ +ailin' in ne4 attem0t* i* 0er5a0* a more *erio(* im0ediment1 T5ere are di*0o*ition* a0t to )e attra,ted ). t5e mere no7elt. o+ an (nderta2in' DD )(t t5e*e are not al4a.* t5o*e )e*t ,al,(lated to 'i7e it *(,,e**1 To t5i*& it i* o+ im0ortan,e t5at t5e ,on+iden,e o+ ,a(tio(* *a'a,io(* ,a0itali*t* )ot5 ,itiCen* and +orei'ner*& *5o(ld )e ex,ited1 And to in*0ire t5i* de*,ri0tion o+ 0er*on* 4it5 ,on+iden,e& it i* e**ential& t5at t5e. *5o(ld )e made to *ee in an. 0ro9e,t& 45i,5 i* ne4& {218} and +or t5at rea*on alone& i+& +or no ot5er& 0re,ario(*& t5e 0ro*0e,t o+ *(,5 a de'ree o+ ,o(ntenan,e and *(00ort +rom 'o7ernment& a* ma. )e ,a0a)le o+ o7er,omin' t5e o)*ta,le*& in*e0ara)le +rom +ir*t ex0eriment*1 T5e *(0eriorit. ante,edentl. en9o.ed ). nation*& 45o 5a7e 0reo,,(0ied and 0er+e,ted a )ran,5 o+ ind(*tr.& ,on*tit(te* a more +ormida)le o)*ta,le& t5an eit5er o+ t5o*e& 45i,5 5a7e )een mentioned& to t5e introd(,tion o+ t5e *ame )ran,5 into a ,o(ntr.& in 45i,5 it did not )e+ore exi*t1 To maintain )et4een t5e re,ent e*ta)li*5ment* o+ one ,o(ntr. and t5e lon' mat(red e*ta)li*5ment* o+ anot5er ,o(ntr.& a ,om0etition (0on e6(al term*& )ot5 a* to 6(alit. and 0ri,e& i* in mo*t ,a*e* im0ra,ti,a)le1 T5e di*0arit. in t5e one& or in t5e ot5er& or in )ot5& m(*t ne,e**aril. )e *o ,on*idera)le a* to +or)id a *(,,e**+(l ri7al*5i0& 4it5o(t t5e extraordinar. aid and 0rote,tion o+ 'o7ernment1 $(t t5e 'reate*t o)*ta,le o+ all to t5e *(,,e**+(l 0ro*e,(tion o+ a ne4 )ran,5 o+ ind(*tr. in a ,o(ntr.& in 45i,5 it 4a* )e+ore (n2no4n& ,on*i*t*& a* +ar a* t5e in*tan,e* a00l.& in t5e )o(ntie* 0remi(m* and ot5er aid* 45i,5 are 'ranted& in a 7ariet. o+ ,a*e*& ). t5e [299] nation*& in 45i,5 t5e e*ta)li*5ment* to )e imitated are 0re7io(*l. introd(,ed1 =t i* 4ell 2no4n >and 0arti,(lar exam0le* in t5e ,o(r*e o+ t5i* re0ort 4ill )e ,ited? t5at ,ertain nation* 'rant )o(ntie* on t5e ex0ortation o+ 0arti,(lar ,ommoditie*& to ena)le t5eir o4n 4or2men to (nder*ell and *(00lant all ,om0etitor*& in t5e ,o(ntrie* to 45i,5 t5o*e ,ommoditie* are *ent1 Hen,e t5e (nderta2er* o+ a ne4 man(+a,t(re 5a7e to ,ontend not onl. 4it5 t5e nat(ral di*ad7anta'e* o+ a ne4 (nderta2in'& )(t 4it5 t5e 'rat(itie* and rem(neration* 45i,5 ot5er 'o7ernment* )e*to41 To )e ena)led to ,ontend 4it5 *(,,e**& it i* e7ident& t5at t5e inter+eren,e and aid o+ t5eir o4n 'o7ernment are indi*0en*a)le1 !om)ination* ). t5o*e en'a'ed in a 0arti,(lar )ran,5 o+ )(*ine** in one ,o(ntr.& to +r(*trate t5e +ir*t e++ort* to introd(,e it into anot5er& ). tem0orar. *a,ri+i,e*& re,om0en*ed 0er5a0* ). extraordinar. indemni+i,ation* o+ t5e 'o7ernment o+ *(,5 ,o(ntr.& are )elie7ed to 5a7e exi*ted& and are not to )e re'arded a* de*tit(te o+ 0ro)a)ilit.1 (990) T5e exi*ten,e or a**(ran,e o+ aid {219} +rom t5e 'o7ernment o+ t5e ,o(ntr.& in 45i,5 t5e )(*ine** i* to )e introd(,ed& ma. )e e**ential to +orti+. ad7ent(rer* a'ain*t t5e dread o+ *(,5 ,om)ination*& to de+eat t5eir e++e,t*& i+ +ormed and to 0re7ent t5eir )ein' +ormed& ). demon*tratin' t5at t5e. m(*t in t5e end 0ro7e +r(itle**1 B5ate7er room t5ere ma. )e +or an ex0e,tation t5at t5e ind(*tr. o+ a 0eo0le& (nder t5e dire,tion o+ 0ri7ate intere*t& 4ill (0on e6(al term* +ind o(t t5e mo*t )ene+i,ial em0lo.ment +or it*el+& t5ere i* none +or a relian,e& t5at it 4ill *tr(''le a'ain*t t5e +or,e o+ (ne6(al term*& or 4ill o+ it*el+ *(rmo(nt all t5e ad7entitio(* )arrier* to a *(,,e**+(l ,om0etition& 45i,5 ma. 5a7e )een ere,ted eit5er ). t5e ad7anta'e* nat(rall. a,6(ired +rom 0ra,ti,e and 0re7io(* 0o**e**ion o+ t5e 'ro(nd& or ). t5o*e 45i,5 ma. 5a7e *0r(n' +rom 0o*iti7e re'(lation* and an arti+i,ial

0oli,.1 T5i* 'eneral re+le,tion mi'5t alone *(++i,e a* an an*4er to t5e o)9e,tion (nder examination: ex,l(*i7el. o+ t5e 4ei'5t. ,on*ideration* 45i,5 5a7e )een 0arti,(larl. (r'ed1 {219} T5e o)9e,tion* to t5e 0(r*(it o+ man(+a,t(re* in t5e United "tate*& 45i,5 next 0re*ent t5em*el7e* to di*,(**ion& re0re*ent an im0ra,ti,a)ilit. o+ *(,,e**& ari*in' +rom t5ree ,a(*e* DD *,ar,it. o+ 5and@earne** o+ la)o(r DD 4ant o+ ,a0ital1 T5e t4o +ir*t ,ir,(m*tan,e* are to a ,ertain extent real& and& 4it5in d(e limit*& o('5t to )e admitted a* o)*ta,le* to t5e *(,,e** o+ man(+a,t(rin' enter0ri*e in t5e United "tate*1 $(t t5ere are 7ario(* ,on*ideration*& 45i,5 le**en t5eir +or,e& and tend to a++ord an a**(ran,e t5at t5e. are not *(++i,ient to 0re7ent t5e ad7anta'eo(* 0ro*e,(tion o+ man. 7er. (*e+(l and exten*i7e man(+a,torie*1 Bit5 re'ard to *,ar,it. o+ 5and*& t5e +a,t it*el+ m(*t )e a00lied [;//] 4it5 no *mall 6(ali+i,ation to ,ertain 0art* o+ t5e United "tate*1 T5ere are lar'e di*tri,t*& 45i,5 ma. )e ,on*idered a* 0rett. +(ll. 0eo0led: and 45i,5 not4it5*tandin' a ,ontin(al drain +or di*tant *ettlement& are t5i,2l. inter*0er*ed 4it5 +lo(ri*5in' and in,rea*in' to4n*1 =+ t5e*e di*tri,t* 5a7e not alread. rea,5ed t5e 0oint& at 45i,5 t5e ,om0laint o+ *,ar,it. o+ 5and* ,ea*e*& t5e. are not remote +rom it& and are a00roa,5in' +a*t to4ard* it8 And 5a7in' 0er5a0* +e4er attra,tion* to a'ri,(lt(re& {22/} t5an *ome ot5er 0art* o+ t5e Union& t5e. ex5i)it a 0ro0ortiona)l. *tron'er tenden,. to4ard* ot5er 2ind* o+ ind(*tr.1 =n t5e*e di*tri,t*& ma. )e di*,erned& no in,on*idera)le mat(rit. +or man(+a,t(rin' e*ta)li*5ment*1 $(t t5ere are ,ir,(m*tan,e*& 45i,5 5a7e )een alread. noti,ed 4it5 anot5er 7ie4& t5at materiall. dimini*5 e7er. 45ere t5e e++e,t o+ a *,ar,it. o+ 5and*1 T5e*e ,ir,(m*tan,e* are DD t5e 'reat (*e 45i,5 ,an )e made o+ 4omen and ,5ildren: on 45i,5 0oint a 7er. 0re'nant and in*tr(,ti7e +a,t 5a* )een mentioned DD t5e 7a*t exten*ion 'i7en ). late im0ro7ement* to t5e em0lo.ment o+ Ma,5ine*& 45i,5 *()*tit(tin' t5e A'en,. o+ +ire and 4ater& 5a* 0rodi'io(*l. le**ened t5e ne,e**it. +or man(al la)or DD t5e em0lo.ment o+ 0er*on* ordinaril. en'a'ed in ot5er o,,(0ation*& d(rin' t5e *ea*on*& or 5o(r* o+ lei*(re: 45i,5& )e*ide* 'i7in' o,,a*ion to t5e exertion o+ a 'reater 6(antit. o+ (991) la)o(r ). t5e *ame n(m)er o+ 0er*on*& and t5ere). en,rea*in' t5e 'eneral *to,2 o+ la)o(r& a* 5a* )een el*e45ere remar2ed& ma. al*o )e ta2en into t5e ,al,(lation& a* a re*o(r,e +or o)7iatin' t5e *,ar,it. o+ 5and* DD la*tl. t5e attra,tion o+ +orei'n emi'rant*1 B5oe7er in*0e,t*& 4it5 a ,are+(l e.e& t5e ,om0o*ition o+ o(r to4n* 4ill )e made *en*i)le to 45at an extent t5i* re*o(r,e ma. )e relied (0on1 T5i* ex5i)it* a lar'e 0ro0ortion o+ in'enio(* and 7al(a)le 4or2men& in di++erent art* and trade*& 45o& ). ex0atriatin' +rom E(ro0e& 5a7e im0ro7ed t5eir o4n ,ondition& and added to t5e ind(*tr. and 4ealt5 o+ t5e United "tate*1 =t i* a nat(ral in+eren,e +rom t5e ex0erien,e& 4e 5a7e alread. 5ad& t5at a* *oon a* t5e United "tate* *5all 0re*ent t5e ,o(ntenan,e o+ a *erio(* 0ro*e,(tion o+ Man(+a,t(re* DD a* *oon a* +orei'n arti*t* *5all )e made *en*i)le t5at t5e *tate o+ t5in'* 5ere a++ord* a moral ,ertaint. o+ em0lo.ment and en,o(ra'ement DD ,om0etent n(m)er* o+ E(ro0ean 4or2men 4ill tran*0lant t5em*el7e*& e++e,t(all. to en*(re t5e *(,,e** o+ t5e de*i'n1 Ho4 indeed ,an it ot5er4i*e 5a00en ,on*iderin' t5e 7ario(* and 0o4er+(l ind(,ement*& 45i,5 t5e *it(ation o+ t5i* ,o(ntr. o++er*: addre**in' t5em*el7e* to *o man. *tron' 0a**ion* and +eelin'*& to *o man. 'eneral and 0arti,(lar intere*t*L =t ma. )e a++irmed t5ere+ore& in re*0e,t to 5and* +or ,arr.in' {221} on man(+a,t(re*& t5at 4e *5all in a 'reat mea*(re trade (0on a +orei'n "to,2: re*er7in' o(r o4n& +or t5e ,(lti7ation o+ o(r land* and t5e [;/1] mannin' o+ o(r "5i0*: a* +ar a* ,5ara,ter and ,ir,(m*tan,e* [*5all] in,line1 =t i* not (n4ort5. o+ remar2&

t5at t5e o)9e,tion to t5e *(,,e** o+ man(+a,t(re*& ded(,ed +rom t5e *,ar,it. o+ 5and*& i* ali2e a00li,a)le to Trade and Na7i'ation: and .et t5e*e are 0er,ei7ed to +lo(ri*5& 4it5o(t an. *en*i)le im0ediment +rom t5at ,a(*e1 A* to t5e dearne** o+ la)o(r >anot5er o+ t5e o)*ta,le* alled'ed? t5i* 5a* relation 0rin,i0all. to t4o ,ir,(m*tan,e*& one t5at 45i,5 5a* )een 9(*t di*,(**ed& or t5e *,ar,it. o+ 5and*& t5e ot5er& t5e 'reatne** o+ 0ro+it*1 A* +ar a* it i* a ,on*e6(en,e o+ t5e *,ar,it. o+ 5and*& it i* miti'ated ). all t5e ,on*ideration* 45i,5 5a7e )een add(,ed a* le**enin' t5at de+i,ien,.1 =t i* ,ertain too& t5at t5e di*0arit. in t5i* re*0e,t& )et4een *ome o+ t5e mo*t man(+a,t(rin' 0art* o+ E(ro0e and a lar'e 0ro0ortion o+ t5e United "tate*& i* not nearl. *o 'reat a* i* ,ommonl. ima'ined1 =t i* al*o m(,5 le** in re'ard to Arti+i,er* and man(+a,t(rer* t5an in re'ard to ,o(ntr. la)o(rer*: and 45ile a ,are+(l ,om0ari*on *5e4*& t5at t5ere i*& in t5i* 0arti,(lar& m(,5 exa''eration: it i* al*o e7ident t5at t5e e++e,t o+ t5e de'ree o+ di*0arit.& 45i,5 doe* tr(l. exi*t& i* dimini*5ed in 0ro0ortion to t5e (*e 45i,5 ,an )e made o+ ma,5iner.1 To ill(*trate t5i* la*t idea DD Iet it )e *(00o*ed& t5at t5e di++eren,e o+ 0ri,e& in t4o !o(ntrie*& o+ a 'i7en 6(antit. o+ man(al la)o(r re6(i*ite to t5e +a)ri,ation o+ a 'i7en arti,le i* a* 1/: and t5at *ome mechanic power i* introd(,ed into )ot5 ,o(ntrie*& 45i,5 0er+ormin' 5al+ t5e ne,e**ar. la)o(r& lea7e* onl. 5al+ to )e done ). 5and& it i* e7ident& t5at t5e di++eren,e in t5e ,o*t o+ t5e +a)riD (992) ,ation o+ t5e arti,le in 6(e*tion& in t5e t4o ,o(ntrie*& a* +ar a* it i* ,onne,ted 4it5 t5e 0ri,e o+ la)o(r& 4ill )e red(,ed +rom 1/1 to %& in ,on*e6(en,e o+ t5e introd(,tion o+ t5at power. T5i* ,ir,(m*tan,e i* 4ort5. o+ t5e mo*t 0arti,(lar attention1 =t dimini*5e* immen*el. one o+ t5e o)9e,tion* mo*t *tren(o(*l. (r'ed& a'ain*t t5e *(,,e** o+ man(+a,t(re* in t5e United "tate*1 To 0ro,(re all *(,5 ma,5ine* a* are 2no4n in an. 0art o+ E(ro0e& ,an onl. re6(ire a 0ro0er 0ro7i*ion and d(e 0ain*1 T5e {222} 2no4led'e o+ *e7eral o+ t5e mo*t im0ortant o+ t5em i* alread. 0o**e**ed1 T5e 0re0aration o+ t5em 5ere& i* in mo*t ,a*e*& 0ra,ti,a)le on nearl. e6(al term*1 A* +ar a* t5e. de0end on Bater& *ome *(0eriorit. o+ ad7anta'e* ma. )e ,laimed& +rom t5e (n,ommon 7ariet. and 'reater ,5ea0ne** o+ *it(ation* ada0ted to Mill *eat*& 4it5 45i,5 di++erent 0art* o+ t5e United "tate* a)o(nd1 "o +ar a* t5e dearne** o+ la)o(r ma. )e a ,on*e6(en,e o+ t5e 'reatne** o+ 0ro+it* in an. )ran,5 o+ )(*ine**& it i* no o)*ta,le to it* *(,,e**1 T5e Underta2er ,an a++ord to 0a. t5e 0ri,e1 [;/2] T5ere are 'ro(nd* to ,on,l(de t5at (nderta2er* o+ Man(+a,t(re* in t5i* !o(ntr. ,an at t5i* time a++ord to 0a. 5i'5er 4a'e* to t5e 4or2men t5e. ma. em0lo. t5an are 0aid to *imilar 4or2men in E(ro0e1 T5e 0ri,e* o+ +orei'n +a)ri,*& in t5e mar2et* o+ t5e United "tate*& 45i,5 4ill +or a lon' time re'(late t5e 0ri,e* o+ t5e dome*ti, one*& ma. )e ,on*idered a* ,om0o(nded o+ t5e +ollo4in' in'redient* DD T5e +ir*t ,o*t o+ material*& in,l(din' t5e Taxe*& i+ an.& 45i,5 are 0aid (0on t5em 45ere t5e. are made8 t5e ex0en,e o+ 'ro(nd*& )(ildin'* ma,5iner. and tool*8 t5e 4a'e* o+ t5e 0er*on* em0lo.ed in t5e man(+a,tor.8 t5e 0ro+it* on t5e ,a0ital or "to,2 em0lo.ed8 t5e ,ommi**ion* o+ A'ent* to 0(r,5a*e t5em 45ere t5e. are made: t5e ex0en,e o+ tran*0ortation to t5e United "tate* [in,l(din' in*(ran,e and ot5er in,idental ,5ar'e*:] t5e taxe* or d(tie*& i+ an. [and +ee* o+ o++i,e] 45i,5 are 0aid on t5eir ex0ortation8 t5e taxe* or d(tie* [and +ee* o+ o++i,e] 45i,5 are 0aid on t5eir im0ortation1 A* to t5e +ir*t o+ t5e*e item*& t5e ,o*t o+ material*& t5e ad7anta'e (0on t5e 45ole& i* at 0re*ent on t5e *ide o+ t5e United "tate*& and t5e di++eren,e& in t5eir +a7or& m(*t in,rea*e& in

0ro0ortion a* a ,ertain and exten*i7e dome*ti, demand *5all ind(,e t5e 0ro0rietor* o+ land to de7ote more o+ t5eir attention to t5e 0rod(,tion o+ t5o*e material*1 =t o('5t not to e*,a0e o)*er7ation& in a ,om0ari*on on t5i* 0oint& t5at *ome o+ t5e 0rin,i0al man(+a,t(rin' !o(ntrie* o+ E(ro0e are m(,5 more de0endent on +orei'n *(00l. +or t5e material* o+ t5eir man(+a,t(re*& t5an 4o(ld )e t5e United "tate*& 45o are ,a0a)le o+ *(00l.in' t5em*el7e*& 4it5 a 'reater a)(ndan,e& a* 4ell a* a 'reater 7ariet. o+ t5e re6(i*ite material*1 {22;} A* to t5e *e,ond item& t5e ex0en,e o+ 'ro(nd* )(ildin'* ma,5iner. and tool*& an e6(alit. at lea*t ma. )e a**(med: *in,e ad7anta'e* in *ome 0arti,(lar* 4ill ,o(nter)alan,e tem0orar. di*ad7anta'e* in ot5er*1 A* to t5e t5ird item& or t5e arti,le o+ 4a'e*& t5e ,om0ari*on ,ertainl. t(rn* a'ain*t t5e United (993) "tate*& t5o('5 a* )e+ore o)*er7ed not in *o 'reat a de'ree a* i* ,ommonl. *(00o*ed1 T5e +o(rt5 item i* ali2e a00li,a)le to t5e +orei'n and to t5e dome*ti, man(+a,t(re1 =t i* indeed more 0ro0erl. a result t5an a 0arti,(lar& to )e ,om0ared1 $(t 4it5 re*0e,t to all t5e remainin' item*& t5e. are alone a00li,a)le to t5e +orei'n man(+a,t(re& and in t5e *tri,te*t *en*e extraordinarie*: ,on*tit(tin' a *(m o+ extra ,5ar'e on t5e +orei'n +a)ri,& 45i,5 ,annot )e e*timated& at le** t5an [+rom 1% to ;/1 19 !ent1 on t5e ,o*t o+ it at t5e man(+a,tor.1 T5i* *(m o+ extra ,5ar'e ma. ,on+identl. )e re'arded a* more t5an a !o(nter0oi*e +or t5e real di++eren,e in t5e 0ri,e o+ la)o(r: and [;/;] i* a *ati*+a,tor. 0roo+ t5at man(+a,t(re* ma. 0ro*0er in de+ian,e o+ it in t5e United "tate*1 To t5e 'eneral alle'ation& ,onne,ted 4it5 t5e ,ir,(m*tan,e* o+ *,ar,it. o+ 5and* and dearne** o+ la)o(r& t5at exten*i7e man(+a,t(re* ,an onl. 'ro4 o(t o+ a red(ndant or +(ll 0o0(lation& it 4ill )e *(++i,ient& to an*4er 'enerall.& t5at t5e +a,t 5a* )een ot5er4i*e DD T5at t5e *it(ation alle'ed to )e an e**ential ,ondition o+ *(,,e**& 5a* not )een t5at o+ *e7eral nation*& at 0eriod* 45en t5e. 5ad alread. attained to mat(rit. in a 7ariet. o+ man(+a,t(re*1 T5e *(00o*ed 4ant o+ !a0ital +or t5e 0ro*e,(tion o+ man(+a,t(re* in t5e United "tate* i* t5e mo*t inde+inite o+ t5e o)9e,tion* 45i,5 are (*(all. o00o*ed to it1 =t i* 7er. di++i,(lt to 0rono(n,e an. t5in' 0re,i*e ,on,ernin' t5e real extent o+ t5e monied ,a0ital o+ a !o(ntr.& and *till more ,on,ernin' t5e 0ro0ortion 45i,5 it )ear* to t5e o)9e,t* t5at in7ite t5e em0lo.ment o+ !a0ital1 =t i* not le** di++i,(lt to 0rono(n,e 5o4 +ar t5e effect o+ an. 'i7en 6(antit. o+ mone.& a* ,a0ital& or in ot5er 4ord*& a* a medi(m +or ,ir,(latin' t5e ind(*tr. and 0ro0ert. o+ a nation& ma. )e en,rea*ed ). t5e 7er. ,ir,(m*tan,e {22E} o+ t5e additional motion& 45i,5 i* 'i7en to it ). ne4 o)9e,t* o+ em0lo.ment1 T5at e++e,t& li2e t5e moment(m o+ de*,endin' )odie*& ma. not im0ro0erl. )e re0re*ented& a* in a ,om0o(nd ratio to mass and velocity. =t *eem* 0rett. ,ertain& t5at a 'i7en *(m o+ mone.& in a *it(ation& in 45i,5 t5e 6(i,2 im0(l*e* o+ ,ommer,ial a,ti7it. 4ere little +elt& 4o(ld a00ear inade6(ate to t5e ,ir,(lation o+ a* 'reat a 6(antit. o+ ind(*tr. and 0ro0ert.& a* in one& in 45i,5 t5eir +(ll in+l(en,e 4a* ex0erien,ed1 =t i* not o)7io(*& 45. t5e *ame o)9e,tion mi'5t not a* 4ell )e made to external ,ommer,e a* to man(+a,t(re*: *in,e it i* mani+e*t t5at o(r immen*e tra,t* o+ land o,,(0ied and (no,,(0ied are ,a0a)le o+ 'i7in' em0lo.ment to more ,a0ital t5an i* a,t(all. )e*to4ed (0on t5em1 =t i* ,ertain& t5at t5e United "tate* o++er a 7a*t +ield +or t5e ad7anta'eo(* em0lo.ment o+ !a0ital: )(t it doe* not +ollo4& t5at t5ere 4ill not )e +o(nd& in one 4a. or anot5er& a *(++i,ient +(nd +or t5e *(,,e**+(l 0ro*e,(tion o+ an. *0e,ie* o+ ind(*tr. 45i,5 i* li2el. to 0ro7e tr(l. )ene+i,ial1

T5e +ollo4in' ,on*ideration* are o+ a nat(re to remo7e all in6(iet(de on t5e *,ore o+ 4ant o+ !a0ital1 T5e introd(,tion o+ $an2*& a* 5a* )een *5e4n (994) on anot5er o,,a*ion 5a* a 0o4er+(l tenden,. to extend t5e a,ti7e !a0ital o+ a !o(ntr.1 Ex0erien,e o+ t5e Utilit. o+ t5e*e =n*tit(tion* i* m(lti0l.in' t5em in t5e United "tate*1 =t i* 0ro)a)le t5at t5e. 4ill )e e*ta)li*5ed 45ere7er t5e. ,an exi*t 4it5 ad7anta'e: and 45ere7er& t5e. ,an )e *(00orted& i+ admini*tered 4it5 0r(den,e& t5e. 4ill add ne4 ener'ie* to all 0e,(niar. o0eration*1 [;/E] T5e aid o+ +orei'n !a0ital ma. *a+el.& and& 4it5 ,on*idera)le latit(de )e ta2en into ,al,(lation1 =t* in*tr(mentalit. 5a* )een lon' ex0erien,ed in o(r external ,ommer,e: and it 5a* )e'(n to )e +elt in 7ario(* ot5er mode*1 Not onl. o(r +(nd*& )(t o(r A'ri,(lt(re and ot5er internal im0ro7ement* 5a7e )een animated ). it1 =t 5a* alread. in a +e4 in*tan,e* extended e7en to o(r man(+a,t(re*1 =t i* a 4ell 2no4n +a,t& t5at t5ere are 0art* o+ E(ro0e& 45i,5 5a7e more !a0ital& t5an 0ro+ita)le dome*ti, o)9e,t* o+ em0lo.ment1 Hen,e& amon' ot5er 0roo+*& t5e lar'e loan* ,ontin(all. +(rni*5ed to +orei'n *tate*1 And it i* e6(all. ,ertain t5at t5e {22%} ,a0ital o+ ot5er 0art* ma. +ind more 0ro+ita)le em0lo.ment in t5e United "tate*& t5an at 5ome1 And not4it5*tandin' t5ere are 4ei'5t. ind(,ement* to 0re+er t5e em0lo.ment o+ ,a0ital at 5ome e7en at le** 0ro+it& to an in7e*tment o+ it a)road& t5o('5 4it5 'reater 'ain& .et t5e*e ind(,ement* are o7err(led eit5er ). a de+i,ien,. o+ em0lo.ment or ). a 7er. material di++eren,e in 0ro+it1 $ot5 t5e*e !a(*e* o0erate to 0rod(,e a tran*+er o+ +orei'n ,a0ital to t5e United "tate*1 GTi* ,ertain& t5at 7ario(* o)9e,t* in t5i* ,o(ntr. 5old o(t ad7anta'e*& 45i,5 are 4it5 di++i,(lt. to )e e6(alled el*e45ere: and (nder t5e in,rea*in'l. +a7ora)le im0re**ion*& 45i,5 are entertained o+ o(r 'o7ernment& t5e attra,tion* 4ill )e,ome more and More *tron'1 T5e*e im0re**ion* 4ill 0ro7e a ri,5 mine o+ 0ro*0erit. to t5e !o(ntr.& i+ t5e. are ,on+irmed and *tren't5ened ). t5e 0ro're** o+ o(r a++air*1 And to *e,(re t5i* ad7anta'e& little more i* no4 ne,e**ar.& t5an to +o*ter ind(*tr.& and ,(lti7ate order and tran6(ilit.& at 5ome and a)road1 =t i* not im0o**i)le& t5at t5ere ma. )e 0er*on* di*0o*ed to loo2 4it5 a 9ealo(* e.e on t5e introd(,tion o+ +orei'n !a0ital& a* i+ it 4ere an in*tr(ment to de0ri7e o(r o4n ,itiCen* o+ t5e 0ro+it* o+ o(r o4n ind(*tr.8 $(t 0er5a0* t5ere ne7er ,o(ld )e a more (nrea*ona)le 9ealo(*.1 =n*tead o+ )ein' 7ie4ed a* a ri7al& it o('5t to )e !on*idered a* a mo*t 7al(a)le a(xiliar.: ,ond(,in' to 0(t in Motion a 'reater N(antit. o+ 0rod(,ti7e la)o(r& and a 'reater 0ortion o+ (*e+(l enter0ri*e t5an ,o(ld exi*t 4it5o(t it1 =t i* at lea*t e7ident& t5at in a !o(ntr. *it(ated li2e t5e United "tate*& 4it5 an in+inite +(nd o+ re*o(r,e* .et to )e (n+olded& e7er. +art5in' o+ +orei'n ,a0ital& 45i,5 i* laid o(t in internal amelioration*& and in ind(*trio(* e*ta)li*5ment* o+ a 0ermanent nat(re& i* a 0re,io(* a,6(i*ition1 And 45ate7er )e t5e o)9e,t* 45i,5 ori'inall. attra,t +orei'n !a0ital& 45en on,e introd(,ed& it ma. )e dire,ted to4ard* an. 0(r0o*e o+ )ene+i,ial exertion& 45i,5 i* de*ired1 And to detain it amon' (*& t5ere ,an )e no ex0edient *o e++e,t(al a* to enlar'e t5e *05ere& 4it5in 45i,5 it ma. )e (*e+(ll. em0lo.ed8 T5o('5 ind(,ed merel. [;/%] 4it5 7ie4* to *0e,(lation* in t5e +(nd*& it ma. a+terD (995) 4ard* )e rendered *()*er7ient to t5e =ntere*t* o+ A'ri,(lt(re& !ommer,e J Man(+a,t(re*1 {22H} $(t t5e attra,tion o+ +orei'n !a0ital +or t5e dire,t 0(r0o*e o+ Man(+a,t(re* o('5t not to )e deemed a ,5imerial ex0e,tation1 T5ere are alread. exam0le* o+ it& a* remar2ed in anot5er 0la,e1 And t5e exam0le*& i+ t5e di*0o*ition )e ,(lti7ated ,an 5ardl. +ail to m(lti0l.1 T5ere are al*o in*tan,e* o+ anot5er 2ind& 45i,5 *er7e

to *tren't5en t5e ex0e,tation1 Enter0ri*e* +or im0ro7in' t5e P()li, !omm(ni,ation*& ). ,(ttin' ,anal*& o0enin' t5e o)*tr(,tion* in Ri7er* and ere,tin' )rid'e*& 5a7e re,ei7ed 7er. material aid +rom t5e *ame *o(r,e1 B5en t5e Man(+a,t(rin' !a0itali*t o+ E(ro0e *5all ad7ert to t5e man. im0ortant ad7anta'e*& 45i,5 5a7e )een intimated& in t5e !o(r*e o+ t5i* re0ort& 5e ,annot )(t 0er,ei7e 7er. 0o4er+(l ind(,ement* to a tran*+er o+ 5im*el+ and 5i* !a0ital to t5e United "tate*1 Amon' t5e re+le,tion*& 45i,5 a mo*t intere*tin' 0e,(liarit. o+ *it(ation i* ,al,(lated to *(''e*t& it ,annot e*,a0e 5i* o)*er7ation& a* a ,ir,(m*tan,e o+ Moment in t5e ,al,(lation& t5at t5e 0ro're**i7e 0o0(lation and im0ro7ement o+ t5e United "tate*& in*(re a ,ontin(all. in,rea*in' dome*ti, demand +or t5e +a)ri,* 45i,5 5e *5all 0rod(,e& not to )e a++e,ted ). an. external ,a*(altie* or 7i,i**it(de*1 $(t 45ile t5ere are !ir,(m*tan,e* *(++i,ientl. *tron' to a(t5ori*e a ,on*idera)le de'ree o+ relian,e on t5e aid o+ +orei'n !a0ital to4ard* t5e attainment o+ t5e o)9e,t in 7ie4& it i* *ati*+a,tor. to 5a7e 'ood 'ro(nd* o+ a**(ran,e& t5at t5ere are dome*ti, re*o(r,e* o+ t5em*el7e* ade6(ate to it1 =t 5a00en*& t5at t5ere i* a *0e,ie* o+ !a0ital a,t(all. exi*tin' 4it5in t5e United "tate*& 45i,5 relie7e* +rom all in6(iet(de on t5e *,ore o+ 4ant o+ !a0ital DD T5i* i* t5e +(nded #e)t1 T5e e++e,t o+ a +(nded de)t& a* a *0e,ie* o+ !a0ital& 5a* )een Noti,ed (0on a +ormer O,,a*ion: )(t a more 0arti,(lar el(,idation o+ t5e 0oint *eem* to )e re6(ired ). t5e *tre** 45i,5 i* 5ere laid (0on it1 T5i* *5all a,,ordin'l. )e attem0ted1 P()li, (nd* an*4er t5e 0(r0o*e o+ !a0ital& +rom t5e e*timation in 45i,5 t5e. are (*(all. 5eld ). Monied men: and ,on*e6(entl. +rom t5e Ea*e and di*0at,5 4it5 45i,5 t5e. ,an )e t(rned into mone.1 T5i* ,a0a,it. o+ 0rom0t ,on7erti)ilit. into mone. ,a(*e* a tran*+er o+ *to,2 to )e in a 'reat n(m)er o+ {227} !a*e* e6(i7alent to a 0a.ment in ,oin1 And 45ere it doe* not 5a00en to *(it t5e 0art. 45o i* to re,ei7e& to a,,e0t a tran*+er o+ "to,2& t5e 0art. 45o i* to 0a.& i* ne7er at a lo** to +ind el*e45ere a 0(r,5a*er o+ 5i* "to,2& 45o 4ill +(rni*5 5im in lie( o+ it& 4it5 t5e !oin o+ 45i,5 5e *tand* in need1 Hen,e in a *o(nd and *ettled *tate o+ t5e 0()li, +(nd*& a man 0o**e**ed [;/H] o+ a *(m in t5em ,an em)ra,e an. *,5eme o+ )(*ine**& 45i,5 o++er*& 4it5 a* m(,5 ,on+iden,e a* i+ 5e 4ere 0o**e**ed o+ an e6(al *(m in !oin1 T5i* o0eration o+ 0()li, +(nd* a* ,a0ital i* too o)7io(* to )e denied: )(t it i* o)9e,ted to t5e =dea o+ t5eir o0eratin' a* an augmentation o+ t5e !a0ital o+ t5e ,omm(nit.& t5at t5e. *er7e to o,,a*ion t5e destruction o+ *ome ot5er ,a0ital to an e6(al amo(nt1 (996) T5e !a0ital 45i,5 alone t5e. ,an )e *(00o*ed to de*tro. m(*t ,on*i*t o+ DD T5e ann(al re7en(e& 45i,5 i* a00lied to t5e 0a.ment o+ =ntere*t on t5e de)t& and to t5e 'rad(al redem0tion o+ t5e 0rin,i0al T5e amo(nt o+ t5e !oin& 45i,5 i* em0lo.ed in ,ir,(latin' t5e +(nd*& or& in ot5er 4ord*& in e++e,tin' t5e di++erent alienation* 45i,5 t5e. (nder'o1 $(t t5e +ollo4in' a00ear* to )e t5e tr(e and a,,(rate 7ie4 o+ t5i* matter1 l*t1 A* to t5e 0oint o+ t5e Ann(al Re7en(e re6(i*ite +or Pa.ment o+ intere*t and redem0tion o+ 0rin,i0al1 A* a determinate 0ro0ortion 4ill tend to 0er*0i,(it. in t5e rea*onin'& let it )e *(00o*ed t5at t5e ann(al re7en(e to )e a00lied& ,orre*0ondin' 4it5 t5e modi+i,ation o+ t5e H 0er !ent *to,2 o+ t5e United "tate*& i* in t5e ratio o+ ei'5t (0on t5e 5(ndred& t5at i* in t5e +ir*t in*tan,e *ix on A,,o(nt o+ intere*t& and t4o on a,,o(nt o+ Prin,i0al1 T5(* +ar it i* e7ident& t5at t5e !a0ital de*tro.ed to t5e ,a0ital ,reated& 4o(ld )ear no 'reater 0ro0ortion& t5an 8 to 1//1 T5ere

4o(ld )e 4it5dra4n +rom t5e total ma** o+ ot5er ,a0ital* a *(m o+ ei'5t dollar* to )e 0aid to t5e 0()li, ,reditor: 45ile 5e 4o(ld )e 0o**e**ed o+ a *(m o+ One H(ndred dollar*& read. to )e a00lied to an. 0(r0o*e& to )e em)ar2ed in {228} an. enter0ri*e& 45i,5 mi'5t a00ear to 5im eli'i)le1 Here t5en t5e !ugmentation o+ !a0ital& or t5e ex,e** o+ t5at 45i,5 i* 0rod(,ed& )e.ond t5at 45i,5 i* de*tro.ed i* e6(al to Ninet. t4o dollar*1 To t5i* ,on,l(*ion& it ma. )e o)9e,ted& t5at t5e *(m o+ Ei'5t dollar* i* to )e 4it5dra4n ann(all.& (ntil t5e 45ole 5(ndred i* extin'(i*5ed& and it ma. )e in+erred& t5at in 0ro,e** o+ time a ,a0ital 4ill )e de*tro.ed e6(al to t5at 45i,5 i* at +ir*t ,reated1 $(t it i* ne7ert5ele** tr(e& t5at d(rin' t5e 45ole o+ t5e inter7al& )et4een t5e ,reation o+ t5e !a0ital o+ 1// dollar*& and it* red(,tion to a *(m not 'reater t5an t5at o+ t5e ann(al re7en(e a00ro0riated to it* redem0tion DD t5ere 4ill )e a 'reater a,ti7e ,a0ital in exi*ten,e t5an i+ no de)t 5ad )een !ontra,ted1 T5e *(m dra4n +rom ot5er !a0ital* in any one year 4ill not ex,eed ei'5t dollar*: )(t t5ere 4ill )e at every instant of time d(rin' t5e 45ole 0eriod& in 6(e*tion a *(m ,orre*0ondin' with so much of the principal, a* remain* unredeemed, in t5e 5and* o+ [;/7] *ome 0er*on& or ot5er& em0lo.ed& or read. to )e em0lo.ed in *ome 0ro+ita)le (nderta2in'1 T5ere 4ill t5ere+ore ,on*tantl. )e more ,a0ital& in ,a0a,it. to )e em0lo.ed& t5an ,a0ital ta2en +rom em0lo.ment1 T5e ex,e** +or t5e +ir*t .ear 5a* )een *tated to )e Ninet. t4o dollar*: it 4ill dimini*5 .earl.& )(t t5ere al4a.* 4ill )e an ex,e**& (ntil t5e 0rin,i0al o+ t5e de)t i* )ro('5t to a le7el 4it5 t5e redeeming annuity, t5at i*& in t5e ,a*e 45i,5 5a* )een a**(med ). 4a. o+ exam0le& to eight dollars. T5e realit. o+ t5i* ex,e** )e,ome* 0al0a)le& i+ it )e *(00o*ed& a* o+ten 5a00en*& t5at t5e ,itiCen o+ a +orei'n !o(ntr. im0ort* into t5e United "tate* 1// dollar* +or t5e 0(r,5a*e o+ an e6(al *(m o+ 0()li, de)t1 Here i* an a)*ol(te a('mentation o+ t5e ma** o+ !ir,(latin' !oin to t5e extent o+ (997) 1// dollar*1 At t5e end o+ a .ear t5e +orei'ner i* 0re*(med to dra4 )a,2 ei'5t dollar* on a,,o(nt o+ 5i* Prin,i0al and =ntere*t& )(t 5e *till lea7e*& Ninet. t4o o+ 5i* ori'inal #e0o*it in ,ir,(lation& a* 5e in li2e manner lea7e* Ei'5t. +o(r at t5e end o+ t5e *e,ond .ear& dra4in' )a,2 t5en al*o t5e ann(it. o+ Ei'5t #ollar*8 And t5(* t5e Matter 0ro,eed*: T5e ,a0ital le+t in ,ir,(lation dimini*5in' ea,5 .ear& and ,omin' nearer to {229} t5e le7el o+ t5e ann(it. dra4n)a,21 T5ere are 5o4e7er *ome di++eren,e* in t5e (ltimate o0eration o+ t5e 0art o+ t5e de)t& 45i,5 i* 0(r,5a*ed ). +orei'ner*& and t5at 45i,5 remain* in t5e 5and* o+ ,itiCen*1 $(t t5e 'eneral e++e,t in ea,5 ,a*e& t5o('5 in di++erent de'ree*& i* to add to t5e a,ti7e ,a0ital o+ t5e !o(ntr.1 Hit5erto t5e rea*onin' 5a* 0ro,eeded on a ,on,e**ion o+ t5e 0o*ition& t5at t5ere i* a de*tr(,tion o+ *ome ot5er ,a0ital& to t5e extent o+ t5e ann(it. a00ro0riated to t5e 0a.ment o+ t5e =ntere*t and t5e redem0tion o+ t5e 0rin,i0al o+ t5e de)t )(t in t5i*& too m(,5 5a* )een ,on,eded1 T5ere i* at mo*t a tem0orar. tran*+er o+ *ome ot5er ,a0ital& to t5e amo(nt o+ t5e Ann(it.& +rom t5o*e 45o 0a. to t5e !reditor 45o re,ei7e*: 45i,5 5e a'ain re*tore* to t5e ,ir,(lation to re*(me t5e o++i,e* o+ a ,a0ital1 T5i* 5e doe* eit5er immediatel. ). em0lo.in' t5e mone. in *ome )ran,5 o+ =nd(*tr.& or mediatel. ). lendin' it to *ome ot5er 0er*on& 45o doe* *o em0lo. it or ). *0endin' it on 5i* o4n maintenan,e1 =n eit5er *(00o*ition t5ere i* no de*tr(,tion o+ ,a0ital& t5ere i* not5in' more t5an a *(*0en*ion o+ it* motion +or a time: t5at i*& 45ile it i* 0a**in' +rom t5e 5and* o+ t5o*e 45o 0a. into t5e P()li, ,o++er*& J t5en,e t5ro('5 t5e 0()li, !reditor into *ome ot5er !5annel o+ ,ir,(lation1 B5en t5e 0a.ment* o+ intere*t are 0eriodi,al and 6(i,2 and made ). in*tr(mentalit. o+ $an2* t5e di7er*ion or *(*0en*ion o+ ,a0ital ma. almo*t )e denominated

momentar.1 Hen,e t5e ded(,tion on t5i* A,,o(nt i* +ar le**& t5an it at +ir*t *i'5t a00ear* to )e1 T5ere i* e7identl.& a* +ar a* re'ard* t5e ann(it. no de*tr(,tion [;/8] nor tran*+er o+ an. ot5er !a0ital& t5an t5at 0ortion o+ t5e in,ome o+ ea,5 indi7id(al& 45i,5 'oe* to ma2e (0 t5e Ann(it.1 T5e land 45i,5 +(rni*5e* t5e armer 4it5 t5e *(m 45i,5 5e i* to ,ontri)(te remain* t5e *ame: and t5e li2e ma. )e o)*er7ed o+ ot5er !a0ital*1 =ndeed a* +ar a* t5e Tax& 45i,5 i* t5e o)9e,t o+ ,ontri)(tion >a* +re6(entl. 5a00en*& 45en it doe*? not o00re**& ). it* 4ei'5t ma. 5a7e )een a Moti7e to greater exertion in an. o,,(0ation: it ma. e7en *er7e to en,rea*e t5e ,ontri)(tor. !a0ital8 T5i* idea i* not 4it5o(t im0ortan,e in t5e 'eneral 7ie4 o+ t5e *()9e,t1 {2;/} =t remain* to *ee& 45at +(rt5er ded(,tion o('5t to )e made +rom t5e ,a0ital 45i,5 i* ,reated& ). t5e exi*ten,e o+ t5e #e)t: on a,,o(nt o+ t5e ,oin& 45i,5 i* em0lo.ed in it* ,ir,(lation1 T5i* i* *(*,e0ti)le o+ m(,5 le** 0re,i*e ,al,(lation& t5an t5e Arti,le 45i,5 5a* )een 9(*t di*,(**ed1 =t i* im0o**i)le to *a. 45at 0ro0ortion o+ ,oin i* ne,e**ar. to ,arr. on t5e alienation* 45i,5 an. *0e,ie* o+ 0ro0ert. (*(all. (nder'oe*1 T5e 6(antit. indeed 7arie* a,,ordin' to ,ir,(m*tan,e*1 $(t it (998) ma. *till 4it5o(t 5e*itation )e 0rono(n,ed& +rom t5e 6(i,2ne** o+ t5e rotation& or rat5er o+ t5e tran*ition*& t5at t5e medium o+ ,ir,(lation al4a.* )ear* )(t a *mall 0ro0ortion to t5e amo(nt o+ t5e property ,ir,(lated1 And it i* t5en,e *ati*+a,toril. ded(,i)le& t5at t5e ,oin em0lo.ed in t5e Ne'o,iation* o+ t5e +(nd* and 45i,5 *er7e* to 'i7e t5em a,ti7it.& a* ,a0ital& i* in,om0ara)l. le** t5an t5e *(m o+ t5e de)t ne'otiated +or t5e 0(r0o*e* o+ )(*ine**1 =t o('5t not& 5o4e7er& to )e omitted& t5at t5e ne'otiation o+ t5e +(nd* )e,ome* it*el+ a di*tin,t )(*ine**: 45i,5 em0lo.*& and ). em0lo.in' di7ert* a 0ortion o+ t5e ,ir,(latin' ,oin +rom ot5er 0(r*(it*1 $(t ma2in' d(e allo4an,e +or t5i* ,ir,(m*tan,e t5ere i* no rea*on to ,on,l(de& t5at t5e e++e,t o+ t5e di7er*ion o+ ,oin in t5e 45ole o0eration )ear* an. ,on*idera)le 0ro0ortion to t5e amo(nt o+ t5e !a0ital to 45i,5 it 'i7e* a,ti7it.1 T5e *(m o+ t5e de)t in ,ir,(lation i* ,ontin(all. at t5e !ommand& o+ an. (*e+(l enter0ri*e DD t5e ,oin it*el+ 45i,5 ,ir,(late* it& i* ne7er more t5an momentaril. *(*0ended +rom it* ordinar. +(n,tion*1 =t ex0erien,e* an in,e**ant and ra0id +l(x and re+l(x to and +rom t5e !5annel* o+ ind(*tr. to t5o*e o+ *0e,(lation* in t5e +(nd*1 T5ere are *tron' ,ir,(m*tan,e* in ,on+irmation o+ t5i* T5eor.1 T5e +or,e o+ Monied !a0ital 45i,5 5a* )een di*0la.ed in Areat $ritain& and t5e 5ei'5t to 45i,5 e7er. *0e,ie* o+ ind(*tr. 5a* 'ro4n (0 (nder it& de+. a *ol(tion +rom t5e 6(antit. o+ ,oin 45i,5 t5at 2in'dom 5a* e7er 0o**e**ed1 A,,ordin'l. it 5a* )een !oe7al 4it5 it* +(ndin' *.*tem& t5e 0re7ailin' o0inion o+ t5e men o+ )(*ine**& and o+ t5e 'eneralit. o+ t5e mo*t *a'a,io(* t5eori*t* o+ t5at ,o(ntr.& t5at t5e o0eration o+ t5e 0()li, +(nd* {2;1} a* ,a0ital 5a* ,ontri)(ted to t5e e++e,t in [;/9] 6(e*tion1 Amon' o(r*el7e* a00earan,e* t5(* +ar +a7o(r t5e *ame !on,l(*ion1 =nd(*tr. in 'eneral *eem* to 5a7e )een reanimated1 T5ere are *.m0tom* indi,atin' an extention o+ o(r !ommer,e1 O(r na7i'ation 5a* ,ertainl. o+ late 5ad a !on*idera)le *0rin'& and t5ere a00ear* to )e in man. 0art* o+ t5e Union a ,ommand o+ ,a0ital& 45i,5 till latel.& *in,e t5e re7ol(tion at lea*t& 4a* (n2no4n1 $(t it i* at t5e *ame time to )e a,2no4led'ed& t5at ot5er ,ir,(m*tan,e* 5a7e ,on,(rred& >and in a 'reat de'ree? in 0rod(,in' t5e 0re*ent *tate o+ t5in'*& and t5at t5e a00earan,e* are not .et *(++i,ientl. de,i*i7e& to )e intirel. relied (0on1 =n t5e 6(e*tion (nder di*,(**ion& it i* im0ortant to di*tin'(i*5 )et4een an absolute increase of )apital, or an accession of real wealth, and an artificial increase of )apital, a* an en'ine o+ )(*ine**& or a* an in*tr(ment o+ ind(*tr. and !ommer,e1 =n t5e +ir*t *en*e& a +(nded de)t 5a* no 0reten*ion* to )ein' deemed an

in,rea*e o+ !a0ital: in t5e la*t& it 5a* 0reten*ion* 45i,5 are not ea*. to )e ,ontro7erted1 O+ a *imilar nat(re i* )an2 ,redit and in an in+erior de'ree& e7er. *0e,ie* o+ 0ri7ate ,redit1 $(t t5o('5 a +(nded de)t i* not in t5e +ir*t in*tan,e& an a)*ol(te in,rea*e o+ !a0ital& or an a('mentation o+ real 4ealt5: .et ). *er7in' a* a Ne4 0o4er in t5e o0eration o+ ind(*tr.& it 5a* 4it5in (999) ,ertain )o(nd* a tenden,. to in,rea*e t5e real 4ealt5 o+ a !omm(nit.& in li2e manner a* mone. )orro4ed ). a t5ri+t. +armer& to )e laid o(t in t5e im0ro7ement o+ 5i* +arm ma.& in t5e end& add to 5i* "to,2 o+ real ri,5e*1 T5ere are re*0e,ta)le indi7id(al*& 45o +rom a 9(*t a7er*ion to an a,,(m(lation o+ P()li, de)t& are (n4illin' to ,on,ede to it an. 2ind o+ (tilit.& 45o ,an di*,ern no 'ood to alle7iate t5e ill 4it5 45i,5 t5e. *(00o*e it 0re'nant: 45o ,annot )e 0er*(aded t5at it o('5t in an. *en*e to )e 7ie4ed a* an in,rea*e o+ ,a0ital le*t it *5o(ld )e in+erred& t5at t5e more de)t t5e more ,a0ital& t5e 'reater t5e )(rt5en* t5e 'reater t5e )le**in'* o+ t5e ,omm(nit.1 $(t it intere*t* t5e 0()li, !o(n,il* to e*timate e7er. o)9e,t a* it tr(l. i*: to a00re,iate 5o4 +ar t5e 'ood in an. mea*(re i* ,om0en*ated ). t5e ill: or t5e ill ). t5e 'ood& Eit5er o+ t5em i* *eldom (nmixed1 {2;2} Neit5er 4ill it +ollo4& t5at an a,,(m(lation o+ de)t i* de*irea)le& )e,a(*e a ,ertain de'ree o+ it o0erate* a* ,a0ital1 T5ere ma. )e a 0let5ora in t5e 0oliti,al& a* in t5e Nat(ral )od.: T5ere ma. )e a *tate o+ t5in'* in 45i,5 an. *(,5 arti+i,ial ,a0ital i* (nne,e**ar.1 T5e de)t too ma. )e *4elled to *(,5 a *iCe& a* t5at t5e 'reate*t 0art o+ it ma. ,ea*e to )e (*e+(l a* a !a0ital& *er7in' onl. to 0am0er t5e di**i0ation o+ idle and di**ol(te indi7id(al*8 a* t5at t5e *(m* re6(ired to 0a. t5e [;1/] =ntere*t (0on it ma. )e,ome o00re**i7e& and )e.ond t5e mean*& 45i,5 a 'o7ernment ,an em0lo.& ,on*i*tentl. 4it5 it* tran6(ilit.& to rai*e t5em& a* t5at t5e re*o(r,e* o+ taxation& to +a,e t5e de)t& ma. 5a7e )een *trained too +ar to admit o+ exten*ion* ade6(ate to exi'en,ie*& 45i,5 re'ard t5e 0()li, *a+et.1 B5ere t5i* ,riti,al 0oint i*& ,annot )e 0rono(n,ed& )(t it i* im0o**i)le to )elie7e& t5at t5ere i* not *(,5 a 0oint1 And a* t5e 7i,i**it(de* o+ Nation* )e'et a 0er0et(al tenden,. to t5e a,,(m(lation o+ de)t& t5ere o('5t to )e in e7er. 'o7ernment a 0er0et(al& anxio(* and (n,ea*in' e++ort to red(,e t5at& 45i,5 at an. time exi*t*& a* +a*t a* *5all )e 0ra,ti,a)le ,on*i*tentl. 4it5 inte'rit. and 'ood +ait51 Rea*onin'* on a *()9e,t ,om0re5endin' idea* *o a)*tra,t and ,om0lex& *o little red(,i)le to 0re,i*e ,al,(lation a* t5o*e 45i,5 enter into t5e 6(e*tion 9(*t di*,(**ed& are al4a.* attended 4it5 a dan'er o+ r(nin' into +alla,ie*1 #(e allo4an,e o('5t t5ere+ore to )e made +or t5i* 0o**i)ilit.1 $(t a* +ar a* t5e Nat(re o+ t5e *()9e,t admit* o+ it& t5ere a00ear* to )e *ati*+a,tor. 'ro(nd +or a )elie+& t5at t5e 0()li, +(nd* o0erate a* a re*o(r,e o+ ,a0ital to t5e !itiCen* o+ t5e United "tate*& and& i+ t5e. are a re*o(r,e at all& it i* an exten*i7e one1111 {2;; omitted: 2;E} T5ere remain* to )e noti,ed an o)9e,tion to t5e en,o(ra'ement o+ man(+a,t(re*& o+ a nat(re di++erent +rom t5o*e 45i,5 6(e*tion t5e 0ro)a)ilit. o+ *(,,e**1 T5i* i* deri7ed +rom it* *(00o*ed tenden,. to 'i7e a mono0ol. o+ ad7anta'e* to 0arti,(lar ,la**e* at t5e ex0en,e o+ t5e re*t o+ t5e ,omm(nit.& 45o& it i* a++irmed& 4o(ld )e a)le to 0ro,(re t5e re6(i*ite *(00lie* o+ man(+a,t(red arti,le* on )etter term* +rom +orei'ner*& t5an +rom {2;%} o(r o4n !itiCen*& and 45o it i* alled'ed& are red(,ed to a ne,e**it. o+ 0a.in' an en5an,ed 0ri,e +or 45ate7er t5e. 4ant& ). e7er. mea*(re& 45i,5 o)*tr(,t* t5e +ree ,om0etition o+ +orei'n ,ommoditie*1 =t i* not an (nrea*ona)le *(00o*ition& t5at mea*(re*& 45i,5 *er7e to a)rid'e t5e +ree ,om0etition o+ +orei'n Arti,le*& 5a7e a tenden,. to o,,a*ion an en5an,ement o+ 0ri,e* and it i* not to )e

denied t5at *(,5 i* t5e e++e,t in a n(m)er o+ !a*e*: )(t t5e +a,t doe* not (ni+orml. ,orre*0ond 4it5 t5e t5eor.1 A red(,tion o+ 0ri,e* 5a* in *e7eral in*tan,e* immediatel. *(,,eeded t5e e*ta)li*5ment o+ a dome*ti, man(+a,t(re1 B5et5er it )e t5at +orei'n Man(+a,t(rer* endea7o(r to *(00lant ). (nder*ellin' o(r o4n& or 45ate7er el*e )e t5e ,a(*e& t5e e++e,t 5a* )een *(,5 a* i* *tated& and t5e re7er*e o+ 45at mi'5t 5a7e )een ex0e,ted1 $(t t5o('5 it 4ere tr(e& t5at t5e immediate and ,ertain e++e,t o+ re'(lation* ,ontro(lin' t5e ,om0etition o+ +orei'n 4it5 dome*ti, +a)ri,* 4a* an in,rea*e o+ 0ri,e& it i* (ni7er*all. tr(e& t5at t5e ,ontrar. [;11] i* t5e (ltimate e++e,t 4it5 e7er. *(,,e**+(l man(+a,t(re1 B5en a dome*ti, man(+a,t(re 5a* attained to 0er+e,tion& and 5a* en'a'ed in t5e 0ro*e,(tion o+ it a ,om0etent n(m)er o+ Per*on*& it in7aria)l. )e,ome* ,5ea0er1 $ein' +ree +rom t5e 5ea7. ,5ar'e*& 45i,5 attend t5e im0ortation o+ +orei'n ,ommoditie*& it ,an )e a++orded& and a,,ordin'l. *eldom or ne7er +ail* to )e *old !5ea0er& in 0ro,e** o+ time& t5an 4a* t5e +orei'n Arti,le +or 45i,5 it i* a *()*tit(te1 T5e internal ,om0etition& 45i,5 ta2e* 0la,e& *oon doe* a4a. e7er. t5in' li2e Mono0ol.& and ). de'ree* red(,e* t5e 0ri,e o+ t5e Arti,le to t5e minimum o+ a rea*ona)le 0ro+it on t5e !a0ital em0lo.ed1 T5i* a,,ord* 4it5 (1002) t5e rea*on o+ t5e t5in' and 4it5 ex0erien,e1 B5en,e it +ollo4*& t5at it i* t5e intere*t o+ a ,omm(nit. 4it5 a 7ie4 to e7ent(al and 0ermanent e,onom.& to en,o(ra'e t5e 'ro4t5 o+ man(+a,t(re*1 =n a national 7ie4& a tem0orar. en5an,ement o+ 0ri,e m(*t al4a.* )e 4ell ,om0en*ated ). a 0ermanent red(,tion o+ it1 =t i* a re+le,tion& 45i,5 ma. 4it5 0ro0riet. )e ind(l'ed 5ere& t5at t5i* e7ent(al dimin(tion o+ t5e 0ri,e* o+ man(+a,t(red Arti,le*: 45i,5 i* t5e re*(lt o+ internal man(+a,t(rin' e*ta)li*5ment*& {2;H} 5a* a dire,t and 7er. im0ortant tenden,. to )ene+it a'ri,(lt(re1 =t ena)le* t5e +armer& to 0ro,(re 4it5 a *maller 6(antit. o+ 5i* la)o(r& t5e man(+a,t(red 0rod(,e o+ 45i,5 5e *tand* in need& and ,on*e6(entl. in,rea*e* t5e 7al(e o+ 5i* in,ome and 0ro0ert.1 T5e o)9e,tion* 45i,5 are ,ommonl. made to t5e ex0edien,. o+ en,o(ra'in'& and to t5e 0ro)a)ilit. o+ *(,,eedin' in man(+a,t(rin' 0(r*(it*& in t5e United *tate*& 5a7in' no4 )een di*,(**ed: t5e !on*ideration* 45i,5 5a7e a00eared in t5e !o(r*e o+ t5e di*,(**ion& re,ommendin' t5at *0e,ie* o+ ind(*tr. to t5e 0atrona'e o+ t5e Ao7ernment& 4ill )e materiall. *tren't5ened ). a +e4 'eneral and *ome 0arti,(lar to0i,*& 45i,5 5a7e )een nat(rall. re*er7ed +or *()*e6(ent Noti,e1 = T5ere *eem* to )e a moral ,ertaint.& t5at t5e trade o+ a ,o(ntr. 45i,5 i* )ot5 man(+a,t(rin' and A'ri,(lt(ral 4ill )e more l(,rati7e and 0ro*0ero(*& t5an t5at o+ a !o(ntr.& 45i,5 i*& merel. A'ri,(lt(ral1 One rea*on +or t5i* i* +o(nd in t5at 'eneral e++ort o+ nation* >45i,5 5a* )een alread. mentioned? to 0ro,(re +rom t5eir o4n *oil*& t5e arti,le* o+ 0rime ne,e**it. re6(i*ite to t5eir o4n ,on*(m0tion and (*e: and 45i,5 *er7e* to render t5eir demand +or a +orei'n *(00l. o+ *(,5 arti,le* in a 'reat de'ree o,,a*ional and ,ontin'ent1 Hen,e& 45ile t5e ne,e**itie* o+ nation* ex,l(*i7el. de7oted to A'ri,(lt(re& +or t5e +a)ri,* o+ man(+a,t(rin' *tate* are ,on*tant and re'(lar& t5e 4ant* o+ t5e latter +or t5e 0rod(,t* o+ t5e +ormer& are lia)le to 7er. [;12] ,on*idera)le +l(,t(ation* and interr(0tion*1 T5e 'reat ine6(alitie* re*(ltin' +rom di++eren,e o+ *ea*on*& 5a7e )een el*e45ere remar2ed8 T5i* (ni+ormit. o+ demand on one *ide& and (n*teadine** o+ it& on t5e ot5er& m(*t ne,e**aril. 5a7e a tenden,. to ,a(*e t5e 'eneral ,o(r*e o+ t5e ex,5an'e o+ ,ommoditie* )et4een t5e 0artie* to t(rn to t5e di*ad7anta'e o+ t5e merel. a'ri,(lt(ral "tate*1 Pe,(liarit. o+ *it(ation& a ,limate and *oil ada0ted to t5e 0rod(,tion o+ 0e,(liar ,ommoditie*& ma.&

*ometime*& ,ontradi,t t5e r(le: )(t t5ere i* e7er. rea*on to )elie7e t5at it 4ill )e +o(nd in t5e Main& a 9(*t one1 Anot5er ,ir,(m*tan,e 45i,5 'i7e* a *(0eriorit. o+ ,ommer,ial ad7anta'e* to *tate*& t5at man(+a,t(re a* 4ell a* ,(lti7ate& {2;7},on*i*t* in t5e more n(mero(* attra,tion*& 45i,5 a more di7er*i+ied mar2et o++er* to +orei'n !(*tomer*& and 'reater *,o0e& 45i,5 it a++ord* to mer,antile enter0ri*e1 =t i* a 0o*ition o+ indi*0(ta)le tr(t5 in !ommer,e& de0endin' too on 7er. o)7io(* rea*on*& t5at t5e 'reate*t re*ort 4ill e7er )e to t5o*e mart* 45ere ,ommoditie*& 45ile e6(all. a)(ndant& are mo*t 7ario(*1 Ea,5 di++eren,e o+ 2ind 5old* o(t (1003) an additional ind(,ement1 And it i* a 0o*ition not le** ,lear& t5at t5e +ield o+ enter0ri*e m(*t )e enlar'ed to t5e Mer,5ant* o+ a !o(ntr.& in 0ro0ortion to t5e 7ariet. a* 4ell a* t5e a)(ndan,e o+ ,ommoditie* 45i,5 t5e. +ind at 5ome +or ex0ortation to +orei'n Mar2et*1 A t5ird ,ir,(m*tan,e& 0er5a0* not in+erior to eit5er o+ t5e ot5er t4o& ,on+errin' t5e *(0eriorit. 45i,5 5a* )een *tated 5a* relation to t5e *ta'nation* o+ demand +or ,ertain ,ommoditie* 45i,5 at *ome time or ot5er inter+ere more or le** 4it5 t5e *ale o+ all1 T5e Nation 45i,5 ,an )rin' to Mar2et& )(t +e4 arti,le* i* li2el. to )e more 6(i,2l. and *en*i)l. a++e,ted ). *(,5 *ta'nation*& t5an one& 45i,5 i* al4a.* 0o**e**ed o+ a 'reat 7ariet. o+ ,ommoditie*1 T5e +ormer +re6(entl. +ind* too 'reat a 0ro0ortion o+ it* *to,2 o+ material*& +or *ale or ex,5an'e& l.in' on 5and DD or i* o)li'ed to ma2e in9(rio(* *a,ri+i,e* to *(00l. it* 4ant* o+ +orei'n arti,le*& 45i,5 are -umerous and urgent, in 0ro0ortion to t5e *mallne** o+ t5e n(m)er o+ it* o4n1 T5e latter ,ommonl. +ind* it*el+ indemni+ied& ). t5e 5i'5 0ri,e* o+ *ome arti,le*& +or t5e lo4 0ri,e* o+ ot5er* DD and t5e Prom0t and ad7anta'eo(* *ale o+ t5o*e arti,le* 45i,5 are in demand ena)le* it* mer,5ant t5e )etter to 4ait +or a +a7ora)le ,5an'e& in re*0e,t to t5o*e 45i,5 are not1 T5ere i* 'ro(nd to )elie7e& t5at a di++eren,e o+ *it(ation& in t5i* 0arti,(lar& 5a* immen*el. di++erent e++e,t* (0on t5e 4ealt5 and 0ro*0erit. o+ Nation*1 rom t5e*e ,ir,(m*tan,e* ,olle,ti7el.& t4o im0ortant in+eren,e* are to )e dra4n& one& t5at t5ere i* al4a.* a 5i'5er 0ro)a)ilit. o+ a +a7ora)le )alan,e o+ Trade& in re'ard to ,o(ntrie* in 45i,5 (1004) man(+a,t(re* +o(nded on t5e )a*i* o+ a t5ri7in' A'ri,(lt(re +lo(ri*5& t5an in [;1;] re'ard to t5o*e& 45i,5 are ,on+ined 45oll. or almo*t 45oll. to A'ri,(lt(re: t5e ot5er >45i,5 i* al*o a ,on*e6(en,e o+ t5e +ir*t? t5at ,o(ntrie* o+ t5e +ormer de*,ri0tion {2;8} are li2el. to 0o**e** more 0e,(niar. 4ealt5& or mone.& t5an t5o*e o+ t5e latter1 a,t* a00ear to ,orre*0ond 4it5 t5i* ,on,l(*ion1 T5e im0ortation* o+ man(+a,t(red *(00lie* *eem in7aria)l. to drain t5e merel. A'ri,(lt(ral 0eo0le o+ t5eir 4ealt51 Iet t5e *it(ation o+ t5e man(+a(rin' [*i,] ,o(ntrie* o+ E(ro0e )e ,om0ared in t5i* 0arti,(lar& 4it5 t5at o+ !o(ntrie* 45i,5 onl. ,(lti7ate& and t5e di*0arit. 4ill )e *tri2in'1 Ot5er ,a(*e*& it i* tr(e& 5el0 to A,,o(nt +or t5i* di*0arit. )et4een *ome o+ t5em: and amon' t5e*e ,a(*e*& t5e relati7e *tate o+ A'ri,(lt(re: )(t )et4een ot5er* o+ t5em& t5e mo*t 0rominent ,ir,(m*tan,e o+ di**imilit(de ari*e* +rom t5e !om0arati7e *tate o+ Man(+a,t(re*1 =n ,orro)oration o+ t5e *ame idea& it o('5t not to e*,a0e remar2& t5at t5e Be*t =ndia =*land*& t5e *oil* o+ 45i,5 are t5e mo*t +ertile& and t5e Nation& 45i,5 in t5e 'reate*t de'ree *(00lie* t5e re*t o+ t5e 4orld& 4it5 t5e 0re,io(* metal*& ex,5an'e to a lo** 4it5 almo*t e7er. ot5er !o(ntr.1 A* +ar a* ex0erien,e at 5ome ma. '(ide& it 4ill lead to t5e *ame ,on,l(*ion1 Pre7io(* to t5e re7ol(tion& t5e 6(antit. o+ ,oin& 0o**e**ed ). t5e ,olonie*& 45i,5 no4 ,om0o*e t5e United "tate*& a00eared& to )e inade6(ate to t5eir ,ir,(lation: and t5eir de)t to Areat$ritain 4a* 0ro're**i7e1 "in,e t5e Re7ol(tion& t5e "tate*& in 45i,5 man(+a,t(re* 5a7e mo*t in,rea*ed& 5a7e re,o7ered +a*te*t

+rom t5e in9(rie* o+ t5e late Bar& and a)o(nd mo*t in 0e,(niar. re*o(r,e*1 =t o('5t to )e admitted& 5o4e7er in t5i* a* in t5e 0re,edin' ,a*e& t5at ,a(*e* irrelati7e to t5e *tate o+ man(+a,t(re* a,,o(nt& in a de'ree& +or t5e P5oenomena remar2ed1 T5e ,ontin(al 0ro're** o+ ne4 *ettlement* 5a* a nat(ral tenden,. to o,,a*ion an (n+a7ora)le )alan,e o+ Trade: t5o('5 it indemni+ie* +or t5e in,on7enien,e& ). t5at in,rea*e o+ t5e national ,a0ital 45i,5 +lo4* +rom t5e ,on7er*ion o+ 4a*te into im0ro7ed land*8 And t5e di++erent de'ree* o+ external ,ommer,e& 45i,5 are ,arried on ). t5e di++erent "tate*& ma. ma2e material di++eren,e* in t5e ,om0arati7e *tate o+ t5eir 4ealt51 T5e +ir*t ,ir,(m*tan,e 5a* re+eren,e to t5e de+i,ien,. o+ ,oin and t5e in,rea*e o+ de)t 0re7io(* to t5e re7ol(tion: t5e la*t to t5e ad7anta'e* 45i,5 t5e mo*t man(+a,t(rin' *tate* a00ear to 5a7e en9o.ed& o7er t5e ot5er*& *in,e t5e termination o+ t5e late Bar1 {2;9} $(t t5e (ni+orm a00earan,e o+ an a)(ndan,e o+ *0e,ie& a* t5e ,on,omitant o+ a +lo(ri*5in' *tate o+ man(+a,t(re* and o+ t5e re7er*e& 45ere t5e. do not 0re7ail& a++ord a *tron' 0re*(m0tion o+ t5eir +a7o(ra)le o0eration (0on t5e 4ealt5 o+ a !o(ntr.1 Not onl. t5e 4ealt5: )(t t5e inde0enden,e and *e,(rit. o+ a [;1E] !o(ntr.& a00ear to )e materiall. ,onne,ted 4it5 t5e 0ro*0erit. o+ man(+a,t(re*1 E7er. nation& 4it5 a 7ie4 to t5o*e 'reat o)9e,t*& o('5t to endea7o(r to 0o**e** 4it5in it*el+ all t5e e**ential* o+ national *(00l.1 T5e*e ,om0ri*e t5e mean* o+ Subsistence habitation clothing and defence. T5e 0o**e**ion o+ t5e*e i* ne,e**ar. to t5e 0er+e,tion o+ t5e )od. 0oliti,& to t5e *a+et. a* 4ell a* to t5e 4el+are o+ t5e *o,iet.: t5e 4ant o+ eit5er& i* t5e 4ant o+ an im0ortant or'an o+ 0oliti,al li+e and Motion: and in t5e 7ario(* ,ri*e* 45i,5 a4ait a *tate& it m(*t *e7erel. +eel t5e e++e,t* o+ an. *(,5 de+i,ien,.1 T5e extreme em)arra**ment* o+ t5e United "tate* d(rin' t5e late Bar& +rom an in,a0a,it. o+ *(00l.in' t5em*el7e*& are *till matter o+ 2een re,olle,tion8 A +(t(re 4ar mi'5t )e ex0e,ted a'ain to exem0li+. t5e mi*,5ie+* and dan'er* o+ a *it(ation& to 45i,5 t5at in,a0a,it. i* *till in too 'reat a de'ree a00li,a)le& (nle** ,5an'ed ). timel. and 7i'oro(* exertion1 To e++e,t t5i* ,5an'e a* +a*t a* *5all )e 0r(dent& merit* all t5e attention and all t5e Oeal o+ o(r P()li, !o(n,il*: Gti* t5e next 'reat 4or2 to )e a,,om0li*5ed1 T5e 4ant o+ a Na7. to 0rote,t o(r external ,ommer,e& a* lon' a* it *5all !ontin(e& m(*t render it a 0e,(liarl. 0re,ario(* relian,e& +or t5e *(00l. o+ e**ential arti,le*& and m(*t *er7e to *tren't5en 0rodi'io(*l. t5e ar'(ment* in +a7o(r o+ man(+a,t(re*1 To t5e*e 'eneral !on*ideration* are added *ome o+ a more 0arti,(lar nat(re1 {2;E} O(r di*tan,e +rom E(ro0e& t5e 'reat +o(ntain o+ man(+a,t(red *(00l.& *()9e,t* (* in t5e exi*tin' *tate o+ t5in'*& to in,on7enien,e and lo** in t4o Ba.*1 T5e )(l2ine** o+ t5o*e ,ommoditie* 45i,5 are t5e ,5ie+ 0rod(,tion* o+ t5e *oil& ne,e**aril. im0o*e* 7er. 5ea7. ,5ar'e* on t5eir tran*0ortation& to di*tant mar2et*1 T5e*e ,5ar'e*& in t5e !a*e*& in 45i,5 t5e nation*& to 45om o(r 0rod(,t* are *ent& maintain a !om0etition in t5e *(00l. o+ t5eir o4n mar2et*& >1005) 0rin,i0all. {2E/} +all (0on (*& and +orm material ded(,tion* +rom 0rimiti7e 7al(e o+ t5e arti,le* +(rni*5ed1 T5e ,5ar'e* on man(+a,t(red *(00lie*& )ro('5t +rom E(ro0e are 'reatl. en5an,ed ). t5e *ame ,ir,(m*tan,e o+ di*tan,e1 T5e*e ,5ar'e*& a'ain& in t5e ,a*e* in 45i,5 o(r o4n ind(*tr. maintain* no ,om0etition& in o(r o4n mar2et*& al*o 0rin,i0all. +all (0on (*: and are an additional ,a(*e o+ extraordinar. ded(,tion +rom t5e 0rimiti7e 7al(e o+ o(r o4n 0rod(,t*: t5e*e )ein' t5e material* o+ ex,5an'e +or t5e +orei'n +a)ri,*& 45i,5 4e ,on*(me1 T5e e6(alit. and moderation o+ indi7id(al 0ro0ert. and t5e 'ro4in' *ettlement* o+ ne4 di*tri,t*& o,,a*ion in t5i* ,o(ntr. an

(n(*(al demand +or ,oar*e man(+a,t(re*: T5e ,5ar'e* o+ 45i,5 )ein' [;1%] 'reater in 0ro0ortion to t5eir 'reater )(l2 a('ment t5e di*ad7anta'e& 45i,5 5a* )een 9(*t de*,ri)ed1 A* in mo*t ,o(ntrie* dome*ti, *(00lie* maintain a 7er. ,on*idera)le ,om0etition 4it5 *(,5 +orei'n 0rod(,tion* o+ t5e *oil& a* are im0orted +or *ale: i+ t5e exten*i7e e*ta)li*5ment o+ Man(+a,torie* in t5e United *tate* doe* not ,reate a *imilar ,om0etition in re*0e,t to man(+a,t(red arti,le*& it a00ear* to )e ,learl. ded(,i)le& +rom t5e !on*ideration* 45i,5 5a7e )een mentioned& t5at t5e. m(*t *(*tain a do()le lo** in t5eir ex,5an'e* 4it5 +orei'n Nation*: *tron'l. ,ond(,i7e to an (n+a7ora)le )alan,e o+ Trade& and 7er. 0re9(di,ial to t5eir =ntere*t*1 T5e*e di*ad7anta'e* 0re** 4it5 no *mall 4ei'5t& on t5e landed intere*t o+ t5e !o(ntr.1 =n *ea*on* o+ 0ea,e& t5e. ,a(*e a *erio(* ded(,tion +rom t5e intrin*i, 7al(e o+ t5e 0rod(,t* o+ t5e *oil1 =n t5e time o+ a Bar& 45i,5 *5o(Gd eit5er in7ol7e o(r*el7e*& or anot5er nation& 0o**e**in' a !on*idera)le *5are o+ o(r ,arr.in' trade& t5e ,5ar'e* on t5e tran*0ortation o+ o(r ,ommoditie*& )(l2. a* mo*t o+ t5em are& ,o(ld 5ardl. +ail to 0ro7e a 'rie7o(* )(rt5en to t5e +armer: 45ile o)li'ed to de0end in *o 'reat de'ree a* 5e no4 doe*& (0on +orei'n mar2et* +or t5e 7ent o+ t5e *(r0l(* o+ 5i* la)o(r1 A* +ar a* t5e 0ro*0erit. o+ t5e i*5erie* o+ t5e United *tate* i* im0eded ). t5e 4ant o+ an ade6(ate mar2et& t5ere ari*e* anot5er *0e,ial rea*on +or de*irin' t5e exten*ion o+ man(+a,t(re*1 $e*ide* t5e +i*5& 45i,5 in man. 0la,e*& 4o(ld )e li2el. to ma2e& {2E1} a 0art o+ t5e *()*i*ten,e o+ t5e 0er*on* em0lo.ed: it i* 2no4n t5at t5e oil*& )one* and *2in* o+ marine animal*& are o+ exten*i7e (*e in 7ario(* man(+a,t(re*1 Hen,e t5e 0ro*0e,t o+ an additional demand +or t5e 0rod(,e o+ t5e i*5erie*1 One more 0oint o+ 7ie4 onl. remain* in 45i,5 to !on*ider t5e ex0edien,. o+ en,o(ra'in' man(+a,t(re* in t5e United *tate*1 =t i* not (n,ommon to meet 4it5 an o0inion t5at t5o('5 t5e 0romotin' o+ man(+a,t(re* ma. )e t5e intere*t o+ a 0art o+ t5e Union& it i* ,ontrar. to t5at o+ anot5er 0art1 T5e Nort5ern J *o(t5ern re'ion* are *ometime* re0re*ented a* 5a7in' ad7er*e intere*t* in t5i* re*0e,t1 T5o*e are ,alled Man(+a,t(rin'& t5e*e A'ri,(lt(ral *tate*: and a *0e,ie* o+ o00o*ition i* ima'ined to *()*i*t )et4een t5e Man(+a,t(rin' and A'ri,(lt(ral intere*t*1 T5i* idea o+ an o00o*ition )et4een t5o*e t4o intere*t* i* t5e ,omD (1006) mon error o+ t5e earl. 0eriod* o+ e7er. ,o(ntr.& )(t ex0erien,e 'rad(all. di**i0ate* it1 =ndeed t5e. are 0er,ei7ed *o o+ten to *(,,o(r and to )e+riend ea,5 ot5er& t5at t5e. ,ome at len't5 to )e ,on*idered a* one8 a *(00o*ition 45i,5 5a* )een +re6(entl. a)(*ed and i* not (ni7er*all. tr(e1 Parti,(lar en,o(ra'ement* o+ 0arti,(lar man(+a,t(re* [;1H] ma. )e o+ a Nat(re to *a,ri+i,e t5e intere*t* o+ land5older* to t5o*e o+ man(+a,t(rer*: $(t it i* ne7ert5ele** a maxim 4ell e*ta)li*5ed ). ex0erien,e& and 'enerall. a,2no4led'ed& 45ere t5ere 5a* )een *(++i,ient ex0erien,e& t5at t5e aggregate 0ro*0erit. o+ man(+a,t(re*& and t5e aggregate 0ro*0erit. o+ A'ri,(lt(re are intimatel. ,onne,ted1 =n t5e !o(r*e o+ t5e di*,(**ion 45i,5 5a* 5ad 0la,e& 7ario(* 4ei'5t. ,on*ideration* 5a7e )een add(,ed o0eratin' in *(00ort o+ t5at maxim1 Per5a0* t5e *(0erior *teadine** o+ t5e demand o+ a dome*ti, mar2et +or t5e *(r0l(* 0rod(,e o+ t5e *oil& i* alone a ,on7in,in' ar'(ment o+ it* tr(t51 =dea* o+ a ,ontrariet. o+ intere*t* )et4een t5e Nort5ern and *o(t5ern re'ion* o+ t5e Union& are in t5e Main a* (n+o(nded a* t5e. are mi*,5ie7o(*1 T5e di7er*it. o+ !ir,(m*tan,e* on 45i,5 *(,5 ,ontrariet. i* (*(all. 0redi,ated& a(t5ori*e* a dire,tl. ,ontrar. ,on,l(*ion1 M(t(al 4ant* ,on*tit(te one o+ t5e *tron'e*t lin2* o+ 0oliti,al ,onne,tion& and t5e extent o+ t5e*e )ear* {2E2}

a nat(ral 0ro0ortion to t5e di7er*it. in t5e mean* o+ m(t(al *(00l.1 "(''e*tion* o+ an o00o*ite ,om0lexion are e7er to )e de0lored& a* (n+riendl. to t5e *tead. 0(r*(it o+ one 'reat ,ommon ,a(*e& and to t5e 0er+e,t 5armon. o+ all t5e 0art*1 =n 0ro0ortion a* t5e mind i* a,,(*tomed to tra,e t5e intimate ,onnexion o+ intere*t& 45i,5 *()*i*t* )et4een all t5e 0art* o+ a "o,iet. (nited (nder t5e *ame 'o7ernment DD t5e in+inite 7ariet. o+ ,5annel* 45i,5 *er7e to !ir,(late t5e 0ro*0erit. o+ ea,5 to and t5ro('5 t5e re*t DD in t5at 0ro0ortion 4ill it )e little a0t to )e di*t(r)ed ). *oli,it(de* and A00re5en*ion* 45i,5 ori'inate in lo,al di*,rimination*1 =t i* a tr(t5 a* im0ortant a* it i* a'reea)le& and one to 45i,5 it i* not ea*. to ima'ine ex,e0tion*& t5at e7er. t5in' tendin' to e*ta)li*5 substantial and permanent order, in t5e a++air* o+ a !o(ntr.& to in,rea*e t5e total ma** o+ ind(*tr. and o0(len,e& i* (ltimatel. )ene+i,ial to e7er. 0art o+ it1 On t5e !redit o+ t5i* 'reat tr(t5& an a,6(ie*,en,e ma. *a+el. )e a,,orded& +rom e7er. 6(arter& to all in*tit(tion* J arran'ement*& 45i,5 0romi*e a ,on+irmation o+ 0()li, order& and an a('mentation o+ National Re*o(r,e1 $(t t5ere are more 0arti,(lar ,on*ideration* 45i,5 *er7e to +orti+. t5e idea& t5at t5e en,o(ra'ement o+ man(+a,t(re* i* t5e intere*t o+ all 0art* o+ t5e Union1 =+ t5e Nort5ern and middle *tate* *5o(ld )e t5e 0rin,i0al *,ene* o+ *(,5 e*ta)li*5ment*& t5e. 4o(ld immediatel. )ene+it t5e more *o(t5ern& ). ,reatin' a demand +or 0rod(,tion*: *ome o+ 45i,5 t5e. 5a7e in ,ommon 4it5 t5e ot5er *tate*& and ot5er* o+ 45i,5 are eit5er 0e,(liar to t5em& or more a)(ndant& or o+ )etter 6(alit.& t5an el*e45ere1 T5e*e 0rod(,tion*& 0rin,i0all. are Tim)er& [;17] +lax& Hem0& !otton& Bool& ra4 *il2& =ndi'o& iron& lead& +(r*& 5ide*& *2in* and ,oal*1 O+ t5e*e arti,le* !otton J =ndi'o are 0e,(liar to (1007) t5e *o(t5ern *tate*: a* are 5it5erto $ead . )oal. lax and Hem0 are or ma. )e rai*ed in 'reater a)(ndan,e t5ere& t5an in t5e More Nort5ern *tate*: and t5e Bool o+ Pir'inia i* *aid to )e o+ )etter 6(alit. t5an t5at o+ an. ot5er *tate8 a !ir,(m*tan,e rendered t5e more 0ro)a)le ). t5e re+le,tion t5at Pir'inia em)ra,e* t5e {2E;} *ame latit(de* 4it5 t5e +ine*t Bool !o(ntrie* o+ E(ro0e1 T5e !limate o+ t5e *o(t5 i* al*o )etter ada0ted to t5e 0rod(,tion o+ *il21 T5e exten*i7e ,(lti7ation o+ !otton ,an 0er5a0* 5ardl. )e ex0e,ted& )(t +rom t5e 0re7io(* e*ta)li*5ment o+ dome*ti, Man(+a,torie* o+ t5e Arti,le: and t5e *(re*t en,o(ra'ement and 7ent& +or t5e ot5er*& 4o(ld re*(lt +rom *imilar e*ta)li*5ment* in re*0e,t to t5em1 =+ t5en& it *ati+a,toril. a00ear*& t5at it i* t5e =ntere*t o+ t5e United *tate*& 'enerall.& to en,o(ra'e man(+a,t(re*& it merit* 0arti,(lar attention& t5at t5ere are ,ir,(m*tan,e*& 45i,5 Render t5e 0re*ent a ,riti,al moment +or enterin' 4it5 Oeal (0on t5e im0ortant )(*ine**1 T5e e++ort ,annot +ail to )e materiall. *e,onded ). a ,on*idera)le and en,rea*in' in+l(x o+ mone.& in ,on*e6(en,e o+ +orei'n *0e,(lation* in t5e +(nd* DD and ). t5e di*order*& 45i,5 exi*t in di++erent 0art* o+ E(ro0e1 T5e +ir*t ,ir,(m*tan,e not onl. +a,ilitate* t5e exe,(tion o+ man(+a,t(rin' enter0ri*e*: )(t it indi,ate* t5em a* a ne,e**ar. mean to t(rn t5e t5in' it*el+ to ad7anta'e& and to 0re7ent it* )ein' e7ent(all. an e7il1 =+ (*e+(l em0lo.ment )e not +o(nd +or t5e Mone. o+ +orei'ner* )ro('5t to t5e ,o(ntr. to )e in7e*ted in 0(r,5a*er* o+ t5e 0()li, de)t& it 4ill 6(i,2l. )e reex0orted to de+ra. t5e ex0en,e o+ an extraordinar. ,on*(m0tion o+ +orei'n l(x(rie*: and di*tre**in' drain* o+ o(r *0e,ie ma. 5erea+ter )e ex0erien,ed to 0a. t5e intere*t and redeem t5e 0rin,i0al o+ t5e 0(r,5a*ed de)t1 T5i* (*e+(l em0lo.ment too o('5t to )e o+ a Nat(re to 0rod(,e *olid and 0ermanent im0ro7ement*1 =+ t5e mone. merel.

*er7e* to 'i7e a tem0orar. *0rin' to +orei'n ,ommer,e: a* it ,annot 0ro,(re ne4 and la*tin' o(tlet* +or t5e 0rod(,t* o+ t5e !o(ntr.: t5ere 4ill )e no real or d(ra)le ad7anta'e 'ained1 A* +ar a* it *5all +ind it* 4a. in A'ri,(lt(ral amelioration*& in o0enin' ,anal*& and in *imilar im0ro7ement*& it 4ill )e 0rod(,ti7e o+ *()*tantial (tilit.1 $(t t5ere i* rea*on to do()t& 45et5er in *(,5 ,5annel* it i* li2el. to +ind *(++i,ient em0lo.ment& and *till more 45et5er man. o+ t5o*e 45o 0o**e** it& 4o(ld )e a* readil. attra,ted to o)9e,t* o+ t5i* nat(re& a* to man(+a,t(rin' 0(r*(it*: {2EE} 45i,5 )ear 'reater analo'. to t5o*e to 45i,5 t5e. are a,,(*tomed& and to t5e *0irit 'enerated ). t5em1 [;18] To o0en t5e one +ield& a* 4ell a* t5e ot5er& 4ill at lea*t *e,(re a )etter 0ro*0e,t o+ (*e+(l em0lo.ment& +or 45ate7er a,,e**ion o+ mone.& t5ere 5a* )een or ma. )e1 T5ere i* at t5e 0re*ent 9(n,t(re a ,ertain +ermentation o+ mind& a ,ertain a,ti7it. o+ *0e,(lation and enter0ri*e 45i,5 i+ 0ro0erl. dire,ted ma. )e made *()*er7ient to (*e+(l 0(r0o*e*: )(t 45i,5 i+ le+t entirel. to it*el+& ma. )e attended 4it5 0erni,io(* e++e,t*1 T5e di*t(r)ed *tate o+ E(ro0e& in,linin' it* ,itiCen* to emi'ration& t5e re6(i*ite 4or2men& 4ill )e more ea*il. a,6(ired& t5an at anot5er time: and (1008) t5e e++e,t o+ m(lti0l.in' t5e o00ort(nitie* o+ em0lo.ment to t5o*e 45o emi'rate& ma. )e an in,rea*e o+ t5e n(m)er and extent o+ 7al(a)le a,6(i*ition* to t5e 0o0(lation art* and ind(*tr. o+ t5e !o(ntr.1 To +ind 0lea*(re in t5e ,alamitie* o+ ot5er nation*& 4o(ld )e ,riminal: )(t to )ene+it o(r*el7e*& ). o0enin' an a*.l(m to t5o*e 45o *(++er& in ,on*e6(en,e o+ t5em& i* a* 9(*ti+ia)le a* it i* 0oliti,1 111 [Here )e'in* a di*,(**ion o+ t5e *e7en di++erent met5od* o+ 0rote,tion: 01 1//8 in t5e Annal* o+ !on're**1] {Pa'e n(m)erin' ,5an'e* to Works of Hamilton} A +(ll 7ie4 5a7in' no4 )een ta2en o+ t5e ind(,ement* to t5e 0romotion o+ man(+a,t(re* in t5e United "tate*& a,,om0anied 4it5 an examination o+ t5e 0rin,i0al o)9e,tion* 45i,5 are ,ommonl. (r'ed in o00o*ition& it i* 0ro0er& in t5e next 0la,e& to ,on*ider t5e mean* ). 45i,5 it ma. )e e++e,ted& a* introd(,tor. to a *0e,i+i,ation o+ t5e o)9e,t*& 45i,5& in t5e 0re*ent *tate o+ t5in'*& a00ear t5e mo*t +it to )e en,o(ra'ed& and o+ t5e 0arti,(lar mea*(re* 45i,5 it ma. )e ad7i*a)le to ado0t& in re*0e,t to ea,51 =n order to a )etter 9(d'ment o+ t5e mean* 0ro0er to )e re*orted to ). t5e United "tate*& it 4ill )e o+ (*e to ad7ert to t5o*e 45i,5 5a7e )een em0lo.ed 4it5 *(,,e** in ot5er ,o(ntrie*1 T5e 0rin,i0al o+ t5e*e are8 ". /rotecting duties -- or duties on those foreign articles which are the rivals of the domestic ones intended to be encouraged. #(tie* o+ t5i* nat(re e7identl. amo(nt to a 7irt(al )o(nt. {2E%} on t5e dome*ti, +a)ri,*: *in,e& ). en5an,in' t5e ,5ar'e* on +orei'n arti,le*& t5e. ena)le t5e& national man(+a,t(rer* to (nder*ell :all t5eir +orei'n ,om0etitor*1 T5e 0ro0riet. o+ t5i* *0e,ie* o+ en,o(ra'ement need not )e d4elt (0on& a* it i* not onl. a ,lear re*(lt +rom tile n(mero(* to0i,* 45i,5 5a7e )een *(''e*ted& )(t i* *an,tioned ). t5e la4* o+ t5e United "tate*& in a 7ariet. o+ in*tan,e*: it 5i* t5e additional re,ommendation o+ )ein' a re*o(r,e o+ re7en(e1 =ndeed& all tile d(tie* im0o*ed on im0orted arti,le*& t5o('5 4it5 an ex,l(*i7e 7ie4 to re7en(e& 5a7e t5e e++e,t& in ,ontem0lation& and& ex,e0t 45ere t5e. +ill on ra4 material*& 4ear a )ene+i,ent a*0e,t to4ard* t5e man(+a,t(rer* o+ t5e ,o(ntr.1

%. /rohibitions of rival articles, or duties e uivalent to prohibitions. T5i* i* anot5er and an e++i,a,io(* mean o+ en,o(ra'in' national man(+a,t(re*: )(t& in 'eneral& it i* onl. +it to )e em0lo.ed 45en a man(+a,t(re 5a* made *(,5 0ro're**& and i* in *o man. 5and*& a* to in*(re a d(e ,om0etition& and an ade6(ate *(00l. on rea*ona)le term*1 O+ d(tie* e6(i7alent to 0ro5i)ition*& t5ere are exam0le* in t5e la4* o+ t5e United "tate*: and t5ere are ot5er ,a*e*& to 45i,5 t5e 0rin,i0le ma. )e ad7anta'eo(*l. extended& )(t t5e. are not n(mero(*1 !on*iderin' a mono0ol. o+ t5e dome*ti, mar2et to it* o4n man(+a,t(rer* a* t5e rei'nin' 0oli,. o+ man(+a,t(rin' nation*& a *imilar 0oli,.& on t5e 0art o+ t5e United "tate*& in e7er. 0ro0er in*tan,e& i* di,tated& it mi'5t almo*t )e *aid& ). t5e 0rin,i0le* o+ di*tri)(ti7e 9(*ti,e: ,ertainl.& ). t5e d(t. o+ endea7orin' to *e,(re to t5eir o4n ,itiCen* a re,i0ro,it. o+ ad7anta'e*1 '. /rohibitions of the exportation of the &aterials of &anufactures. T5e de*ire o+ *e,(rin' a ,5ea0 and 0lenti+(l *(00l. +or t5e national 4or2D (1009) men& and 45ere t5e arti,le i* eit5er 0e,(liar to tile ,o(ntr.& or o+ 0e,(liar 6(alit. t5ere& t5e 9ealo(*. o+ ena)lin' +orei'n 4or2men to ri7al t5o*e o+ t5e nation 4it5 it* o4n material*& are t5e leadin' moti7e* to t5i* *0e,ie* o+ re'(lation1 =t {2EH} o('5t not to )e a++irmed& t5at it i* in no in*tan,e 0ro0er: )(t i*& ,ertainl.& one 45i,5 o('5t to )e ado0ted 4it5 'reat ,ir,(m*0e,tion& and onl. in 7er. 0lain ,a*e*1 =t i* *een at on,e& t5at it* immediate o0eration i* to a)rid'e t5e demand& and 2ee0 do4n t5e 0ri,e o+ t5e 0rod(,e o+ *ome ot5er )ran,5 o+ ind(*tr. D'enerall. *0ea2in'& o+ a'ri,(lt(reDto t5e 0re9(di,e o+ t5o*e 45o ,arr. it on: and t5o('5& i+ it )e reall. e**ential to t5e 0ro*0erit. o+ an. 7er. im0ortant national man(+a,t(re& it ma. 5a00en t5at t5o*e 45o are in9(red& in t5e +ir*t in*tan,e& ma.& )e& e7ent(all.& indemni+ied ). t5e *(0erior *teadine** o+ an exten*i7e dome*ti, mar2et& de0endin' on t5at 0ro*0erit.: .et& in a matter in 45i,5 t5ere i* *o m(,5 room +or ni,e and di++i,(lt ,om)ination*& in 45i,5& *(,5 o00o*ite ,on*ideration* ,om)at ea,5 ot5er& 0r(den,e *eem* to di,tate t5at t5e ex0edient in 6(e*tion o('5t to )e ind(l'ed 4it5 a *0arin' 5and1 E1 /ecuniary bounties. T5i* 5a* )een +o(nd one o+ t5e mo*t e++i,a,io(* mean* o+ en,o(ra'in' man(+a,t(re*& and i*& in *ome 7ie4*& t5e )e*t1 T5o('5 it 5a* not .et )een 0ra,ti*ed (0on ). t5e Ao7ernment o+ t5e United "tate* >(nle** t5e allo4an,e on t5e ex0iration o+ dried and 0i,2led +i*5 and *alted meat ,o(ld )e ,on*idered a* a )o(nt.?& and t5o('5 it i* le** +a7ored ). 0()li, o0inion t5an *ome ot5er mode*& it* ad7anta'e* are t5e*e8 11 =t i* a *0e,ie* o+ en,o(ra'ement more 0o*iti7e and dire,t t5an an. ot5er& and& +or t5at 7er. rea*on& 5a* a more immediate tenden,. to *tim(late and (05old ne4 enter0ri*e*& in,rea*in' t5e ,5an,e* o+ 0ro+it& and dimini*5in' t5e ri*2* o+ lo**& in t5e +ir*t attem0t*1 21 =t a7oid* t5e in,on7enien,e o+ a tem0orar. a('mentation o+ 0ri,e& 45i,5 i* in,ident to *ome ot5er mode*: or it 0rod(,e* it to& a le** de'ree& eit5er ). ma2in' no addition to t5e ,5ar'e* on t5e ri7al +orei'n arti,le& a* in t5e ,a*e o+ 0rote,tin' d(tie*& or ). ma2in' a *maller addition1 T5e +ir*t 5a00en* 45en t5e +(nd +or t5e )o(nt. i* deri7ed +rom a di++erent o)9e,t >45i,5 ma. or ma. not in,rea*e t5e 0ri,e o+ *ome ot5er arti,le& a,,ordin' {2E7} to t5e nat(re o+ t5at o)9e,t?& t5e *e,ond& 45en t5e +(nd i* deri7ed +rom t5e *ame& or a *imilar o)9e,t& o+ +orei'n man(+a,t(re1 One 0er ,ent1 d(t. on t5e +orei'n arti,le& ,on7erted

into a )o(nt. on t5e dome*ti,& 4ill 5a7e an e6(al e++e,t 4it5 a d(t. o+ t4o 0er ,ent1& ex,l(*i7e o+ *(,5 )o(nt.: and t5e 0ri,e o+ t5e +orei'n ,ommodit. i* lia)le to )e rai*ed& in t5e one ,a*e& in t5e 0ro0ortion o+ one 0er ,ent1: in t5e ot5er in t5at o+ t4o 0er ,ent1 =ndeed t5e )o(nt.& 45en dra4n +rom anot5er *o(r,e& i* ,al,(lated to 0romote a red(,tion o+ 0ri,e: )e,a(*e& 4it5o(t la.in' an. ne4 ,5ar'e on t5e +orei'n arti,le& it *er7e* to introd(,e a ,om0etition 4it5 it& and to in,rea*e t5e total 6(antit. o+ t5e arti,le in t5e mar2et1 ;1 $o(ntie* 5a7e not& li2e 5i'5 0rote,tin' d(tie*& a tenden,. to 0rod(,e *,ar,it.1 An inD (1010) ,rea*e o+ 0ri,e i* not al4a.* t5e immediate& t5o('5& 45ere t5e 0ro're** o+ a dome*ti, man(+a,t(re doe* not ,o(ntera,t a ri*e& it i*& ,ommonl.& t5e (ltimate e++e,t o+ an additional d(t.1 =n t5e inter7al )et4een t5e la.in' o+ t5e d(t. and t5e 0ro0ortional in,rea*e o+ 0ri,e& it ma. di*,o(ra'e im0ortation& ). inter+erin' 4it5 t5e 0ro+it* to )e ex0e,ted +rom t5e *ale o+ t5e arti,le1 E1 $o(ntie* are& *ometime*& not onl. t5e )e*t& )(t t5e onl. 0ro0er ex0edient +or (nitin' t5e en,o(ra'ement o+ a ne4 o)9e,t o+ a'ri,(lt(re 4it5 t5at o+ a ne4 o)9e,t o+ man(+a,t(re1 =t i* t5e intere*t o+ t5e +armer to 5a7e t5e 0rod(,tion o+ t5e ra4 material 0romoted ). ,o(ntera,tin' t5e inter+eren,e o+ t5e +orei'n material o+ t5e *ame 2ind1 =t i* t5e intere*t o+ t5e man(+a,t(rer to 5a7e t5e material a)(ndant and ,5ea01 =+& 0rior to t5e dome*ti, 0rod(,tion o+ t5e material& in *(++i,ient 6(antit. to *(00l. t5e man(+a,t(rer on 'ood term*& a d(t. )e 0aid (0on t5e im0ortation o+ it +rom a)road& 4it5 a 7ie4 to 0romote t5e rai*in' o+ it at 5ome& t5e intere*t )ot5 o+ t5e +armer and man(+a,t(rer 4ill )e di**er7ed1 $. eit5er de*tro.in' t5e re6(i*ite *(00l.& or rai*in' t5e 0ri,e o+ t5e arti,le )e.ond 45it ,an )e a++orded to )e 'i7en +or it ). t5e ,ond(,tor o+ an in+ant man(+a,t(re& it i* a)andoned or +ail*& and t5ere )ein' no dome*ti, man(+a,torie* to ,reate a demand +or t5e ra4 material& 45i,5 i* rai*ed ). t5e +armer& it i* in 7ain t5at t5e ,om0etition o+ t5e li2e +orei'n arti,le ma. 5a7e )een de*tro.ed1 {2E8} =t ,annot e*,a0e noti,e& t5at a d(t. (0on t5e im0ortation o+ an arti,le ,an no ot5er4i*e aid t5e dome*ti, 0rod(,tion o+ it& t5an ). 'i7in' t5e latter 'reater ad7anta'e* in t5e 5ome mar2et1 =t ,an 5a7e no in+l(en,e (0on t5e ad7anta'eo(* *ale o+ t5e arti,le 0rod(,ed in +orei'n mar2et* DD no tenden,.& t5ere+ore& to 0romote it* ex0ortation1 T5e tr(e 4a. to ,on,iliate t5e*e t4o intere*t* i* to la. a d(t. on +orei'n man(+a,t(re* o+ t5e material& t5e 'ro4t5 o+ 45i,5 i* de*ired to )e en,o(ra'ed& and to a00l. t5e 0rod(,e o+ t5at d(t.& ). 4a. o+ )o(nt.& eit5er (0on t5e 0rod(,tion o+ t5e material it*el+& or (0on it* man(+a,t(re at 5ome& or (0on )ot51 =n t5i* di*0o*ition o+ t5e t5in'& t5e man(+a,t(rer ,ommen,e* 5i* enter0ri*e (nder e7er. ad7anta'e 45i,5 i* attaina)le& a* to 6(antit. or 0ri,e o+ t5e ra4 material: and t5e +armer& i+ t5e )o(nt. )e immediatel. to 5im& i* ena)led ). it to enter into a *(,,e**+(l ,om0etition 4it5 t5e +orei'n material1 =+ t5e )o(nt. )e to t5e man(+a,t(rer& on *o m(,5 o+ t5e dome*ti, material a* 5e ,on*(me*& t5e o0eration i* nearl. t5e *ame: 5e 5a* a moti7e o+ intere*t to 0re+er t5e dome*ti, ,ommodit.& i+ o+ e6(al 6(alit.& e7en at a 5i'5er 0ri,e t5an t5e +orei'n& *o lon' a* t5e di++eren,e o+ 0ri,e i* an. t5in' *5ort o+ t5e )o(nt. 45i,5 i* allo4ed (0on t5e arti,le1 Ex,e0t t5e *im0le and ordinar. 2ind* o+ 5o(*e5old man(+a,t(re& or t5o*e +or 45i,5 t5ere are 7er. ,ommandin' lo,al ad7anta'e*& 0e,(niar. )o(ntie* are& in mo*t ,a*e*& indi*0en*a)le to t5e introd(,tion o+ a ne4 )ran,51 A *tim(l(* and a *(00ort& not le** 0o4er+(l and dire,t& i*& 'enerall. *0ea2in'& e**ential to t5e o7er,omin' o+ t5e o)*ta,le* 45i,5 ari*e +rom t5e ,om0etition* o+ *(0eriorD (1011) and mat(rit. el*e45ere1

$o(ntie* are e*0e,iall. e**ential in re'ard to arti,le* (0on 45i,5 t5o*e +orei'ner*& 45o 5a7e )een a,,(*tomed to *(00l. a ,o(ntr.& are in t5e 0ra,ti,e o+ 'rantin' t5em1 T5e ,ontin(an,e o+ )o(ntie* on man(+a,t(re* lon' e*ta)li*5ed& m(*t almo*t al4a.* )e o+ 6(e*tiona)le 0oli,.8 )e,a(*e a 0re*(m0tion 4o(ld ari*e& in e7er. *(,5 ,a*e& t5at t5ere 4ere nat(ral and in5erent im0ediment* to *(,,e**1 $(t& in ne4 (nderta2in'*& t5e. are a* 9(*ti+ia)le a* t5e. are o+tentime* ne,e**ar.1 {2E9} T5ere i* a de'ree o+ 0re9(di,e a'ain*t )o(ntie*& +rom an a00earan,e o+ 'i7in' a4a. t5e 0()li, mone. 4it5o(t all immediate ,on*ideration& and +rom a *(00o*ition t5at t5e. *er7e to enri,5 0arti,(lar ,la**e*& at t5e ex0en*e o+ t5e ,omm(nit.1 $(t neit5er o+ t5e*e *o(r,e* o+ di*li2e 4ill )ear a *erio(* examination1 T5ere i* no 0(r0o*e to 45i,5 0()li, mone. ,an )e more )ene+i,iall. a00lied& t5an to t5e a,6(i*ition o+ a ne4 and (*e+(l )ran,5 o+ ind(*tr.: no ,on*ideration more 7al(a)le& t5an a 0ermanent addition to t5e 'eneral *to,2 o+ 0rod(,ti7e la)or1 A* to t5e *e,ond *o(r,e o+ o)9e,tion* it e6(all. lie* a'ain*t ot5er mode* o+ en,o(ra'ement& 45i,5 are admitted to )e eli'i)le1 A* o+ten a* a d(t. (0on a +orei'n arti,le ma2e* an addition to it* 0ri,e& it ,a(*e* an extra ex0en*e to t5e ,omm(nit.& +or t5e )ene+it o+ t5e dome*ti, man(+a,t(rer1 A )o(nt. doe* no more1 $(t it i* t5e intere*t o+ t5e *o,iet.& in ea,5 ,a*e& to *()mit to t5e tem0orar. ex0en*eD45i,5 i* more t5an ,om0en*ated ). all in,rea*e o+ ind(*tr. and 4ealt5: ). an a('mentation o+ re*o(r,e* and inde0enden,e: and ). t5e ,ir,(m*tan,e o+ e7ent(al ,5ea0ne**& 45i,5 5a* )een noti,ed in anot5er 0la,e1 =t 4o(ld de*er7e attention& 5o4e7er& in t5e em0lo.ment o+ t5i* *0e,ie* o+ en,o(ra'ement in t5e United "tate*& a* a rea*on +or moderatin' t5e de'ree o+ it in t5e in*tan,e* in 45i,5 it mi'5t )e deemed eli'i)le& t5at t5e 'reat di*tan,e o+ t5i* ,o(ntr.D +rom E(ro0e im0o*e* 7er. 5ea7. ,5ar'e* on all t5e +a)ri,* 45i,5 are )ro('5t +rom t5en,e& amo(ntin' to +rom +i+teen to t5irt. 0er ,ent1 oil t5eir 7al(e& a,,ordin' to t5eir )(l21 A 6(e*tion 5a* )een made ,on,ernin' t5e ,on*tit(tional ri'5t o+ t5e Ao7ernment o+ t5e United "tate* to a00l. t5i* *0e,ie* o+ en,o(ra'ement: )(t t5ere i* ,ertaint. no 'ood +o(ndation +or *(,5 a 6(e*tion1 T5e National Ie'i*lat(re 5a* ex0re** a(t5orit. <to la. and ,olle,t taxe*& d(tie*& im0o*t*& and ex,i*e*& to 0a. t5e de)t*& and 0ro7ide +or t5e ,ommon de+en,e (1012) and 'eneral 4el+are&F 4it5 no ot5er 6(ali+i,ation* t5an t5at @all d(tie*& im0o*t* and ex,i*e*& *5all )e (ni+orm t5ro('5o(t t5e United "tate*: and t5at no ,a0itation or ot5er dire,t tax *5all )e laid& (nle** in 0ro0ortion to n(m)er*& a*,ertained ). a ,en*(* or en(meration& {2%/} ta2en on t5e 0rin,i0le* 0re*,ri)ed in t5e ,on*tit(tion&@ and t5at @no tax or d(t. *5all )e laid on arti,le* ex0orted +rom an. "tate1@ T5e*e t5ree 6(ali+i,ation* ex,e0ted& t5e 0o4er to rai*e mone. i* 0lenar. and inde+inite& and t5e o)9e,t* to 45i,5 it ma. )e a00ro0riated& are no le** ,om0re5en*i7e t5in t5e 0a.ment o+ t5e 0()li, de)t*& and t5e 0ro7idin' +or t5e ,ommon de+en,e and 'eneral 4el+are1 T5e term* @'eneral 4el+are@ 4ere do()tle** intended to *i'ni+. more t5an 4a* ex0re**ed or im0orted in t5o*e 45i,5 0re,eded: ot5er4i*e& n(mero(* exi'en,ie* in,ident to t5e a++air* o+ a nation 4o(ld 5a7e )een le+t 4it5o(t a 0ro7i*ion1 T5e 05ra*e i* a* ,om0re5en*i7e a* an. t5at ,o(ld 5a7e )een (*ed: )e,a(*e it 4a* not +it t5at t5e ,on*tit(tional a(t5orit. o+ t5e Union to a00ro0riate it* re7en(e* *5o(ld 5a7e )een re*tri,ted 4it5in narro4er limit* t5an t5e @'eneral 4el+are:@ and )e,a(*e t5i* ne,e**aril. em)ra,e* a 7a*t 7ariet. o+ 0arti,(lar*& 45i,5 are *(*,e0ti)le neit5er o+ *0e,i+i,ation nor o+ de+inition1 =t i*& t5ere+ore& o+ ne,e**it.& le+t to t5e di*,retion o+ t5e National Ie'i*lat(re to 0rono(n,e (0on t5e o)9e,t* 45i,5

,on,ern t5e 'eneral 4el+are& and +or 45i,5& (nder t5at de*,ri0tion& an a00ro0riation o+ mone. i* re6(i*ite and 0ro0er1 And t5ere *eem* to )e no room +or a do()t& t5at 45ate7er ,on,ern* t5e 'eneral intere*t* o+ learnin'& o+ a'ri,(lt(re& o+ man(+a,t(re*& and o+ ,ommer,e& are 4it5in t5e *05ere o+ t5e national ,o(n,il*& a* +ar a* re'ard* an a00li,ation o+ mone.1 T5e onl. 6(ali+i,ation o+ t5e 'eneralit. o+ t5e 05ra*e in 6(e*tion& 45i,5 *eem* to )e admi**i)le& i* t5i*8 T5at t5e o)9e,t& to 45i,5 an a00ro0riation o+ mone. i* to )e made& )e 'eneral& and not lo,al: it* o0eration extendin'& in +a,t& or ). 0o**i)ilit.& t5ro('5o(t t5e Union& and not )ein' ,on+ined to a 0arti,(lar *0ot1 No o)9e,tion o('5t to ari*e to t5i* ,on*tr(,tion& +rom a *(00o*ition t5at it 4o(ld im0l. a 0o4er to do 45ate7er el*e *5o(ld a00ear to !on're** ,ond(,i7e to t5e 'eneral 4el+are1 A 0o4er to a00ro0riate mone. 4it5 t5i* latit(de& 45i,5 i* 'ranted& too& in ex0re** term*& 4o(ld not ,arr. a 0o4er to do an. ot5er t5in' {2%1} not a(t5oriCed in t5e ,on*tit(tion& eit5er ex0re**l. or ). +air im0li,ation1 *. /remiums T5e*e are o+ a nat(re allied to )o(ntie*& t5o('5 di*tin'(i*5a)le +rom t5em in *ome im0ortant +eat(re*1 $o(ntie* are a00li,a)le to t5e 45ole 6(antit. o+ an arti,le 0rod(,ed& or man(+a,t(red& or ex0orted& and in7ol7e a ,orre*0ondent ex0en*e1 Premi(m* *er7e to re4ard *ome 0arti,(lar ex,ellen,e or *(0eriorit.& *ome extraordinar. exertion or *2ill& and are di*0en*ed onl. in a *mall n(m)er o+ ,a*e*1 $(t t5eir e++e,t i* to *tim(late 'eneral e++ort: ,ontri7ed *o a* to )e )ot5 5onorar. and l(,rati7e& t5e. addre** t5em*el7e* to di++erent 0a**ion* Q to(,5in' t5e ,5ord*& a* 4ell o+ em(lation a* o+ intere*t1 T5e. are& a,,ordin'l.& a 7er. e,onomi,al mean o+ ex,itin' t5e enter0ri*e o+ a 45ole ,omm(nit.1 T5ere are 7ario(* *o,ietie*& in di++erent ,o(ntrie*& 45o*e o)9e,t i* t5e di*0en*ation o+ 0remi(m* +or t5e en,o(ra'ement o+ a'ri,(lt(re& art*& man(+a,t(re*& and ,ommer,e: and t5o('5 t5e. are& +or t5e mo*t 0art& 7ol(ntar. a**o,iation*& 4it5 ,om0arati7el. *lender +(nd*& t5eir (tilit. 5a* )een immen*e1 M(,5 5i* )een done& ). t5i* mean& in Areat $ritain1 ",otland& in 0arti,(lar& o4e*& materiall. to it& a 0rodi'io(* amelioration o+ ,ondition1 rom a *imilar e*ta)li*5ment in t5e United "tate*& *(00lied and *(00orted ). t5e Ao7ernment o+ t5e Union& 7a*t )ene+it* mi'5t& rea*ona)l.& )e ex0e,ted1 (1013) "ome +(rt5er idea*& on t5i* 5ead& *5all& a,,ordin'l.& )e *()mitted& in t5e ,on,l(*ion o+ t5i* re0ort1 +. 0he exemption of the materials of manufactures from duty. T5e 0oli,. o+ t5at exem0tion& a* a 'eneral r(le& 0arti,(larl. in re+eren,e to ne4 e*ta)li*5ment*& i* o)7io(*1 =t ,art 5ardl. e7er )e ad7i*a)le to add t5e o)*tr(,tion* o+ +i*,al )(rt5en* to t5e di++i,(ltie* 45i,5 nat(rall. em)arra** a ne4 man(+a,t(re: and 45ere it i* mat(red& and in ,ondition to )e,ome an o)9e,t o+ re7en(e& it i*& 'enerall. *0ea2in'& )etter t5at t5e +a)ri,& t5an t5e material& *5o(ld )e t5e *()9e,t o+ taxation1 =dea* o+ 0ro0ortion {2%2} )et4een t5e 6(ant(m o+ t5e tax and t5e 7al(e o+ t5e arti,le& ,an )e more ea*il. ad9(*ted in t5e +ormer t5in in t5e latter ,a*e1 An ar'(ment +or exem0tion* o+ t5i* 2ind& in t5e United "tate*& i* to )e deri7ed +rom t5e 0ra,ti,e& a* +ar a* t5eir ne,e**itie* 5a7e 0ermitted& o+ t5o*e nation* 45om 4e are to meet a* ,om0etitor* in o(r o4n and in +orei'n mar2et*1 T5ere are& 5o4e7er& ex,e0tion* to it& o+ 45i,5 *ome exam0le* 4ill )e 'i7en (nder t5e next 5ead1 T5e la4* o+ t5e Union a++ord in*tan,e* o+ t5e o)*er7an,e o+ t5e 0oli,. 5ere re,ommended& )(t it 4ill 0ro)a)l. )e +o(nd ad7i*a)le to extend it to *ome ot5er ,a*e*1 O+ a nat(re& 5earin'

*ome a++init. to t5at 0oli,.& i* t5e re'(lation 45i,5 exem0t* +rom d(t. t5e tool* and im0lement*& a* 4ell a* t5e )oo2*& ,lot5e*& and 5o(*e5old +(rnit(re& o+ +orei'n arti*t*& 45o ,ome to re*ide in t5e United "tate*Dan ad7anta'e alread. *e,(red to t5em ). t5e la4* o+ t5e Union& and 45i,5 it i*& in e7er. 7ie4& 0ro0er to ,ontin(e1 ,. #rawbacks of the duties which are imposed on the materials of manufactures. =t 5a* alread. )een o)*er7ed& a* a 'eneral r(le& t5at d(tie* on t5o*e material* o('5t& 4it5 ,ertain ex,e0tion*& to )e +or)orne1 O+ t5e*e ex,e0tion*& t5ree ,a*e* o,,(r& 45i,5 ma. *er7e a* exam0le*1 One& 45ere t5e material i* it*el+ an o)9e,t o+ 'eneral or exten*i7e ,on*(m0tion& and a +it and 0rod(,ti7e *o(r,e o+ re7en(e1 Anot5er& 45ere a man(+a,t(re o+ a *im0ler 2ind& t5e ,om0etition o+ 45i,5& 4it5 a li2e dome*ti, arti,le& i* de*ired to )e re*trained& 0arta2e* o+ t5e nat(re o+ a ra4 material& +rom )ein' ,a0a)le& ). a +art5er 0ro,e**& to )e ,on7erted into a man(+a,t(re o+ a di++erent 2ind& t5e introd(,tion or 'ro4t5 o+ 45i,5 i* de*ired to )e en,o(ra'ed1 A t5ird& 45ere t5e material it*el+ i* a 0rod(,tion o+ t5e ,o(ntr.& and in *(++i,ient a)(ndan,e to +(rni*5 a ,5ea0 and 0lenti+(l *(00l. to t5e national man(+a,t(rer*1 Under t5e +ir*t de*,ri0tion ,ome* t5e arti,le o+ mola**e*1 =t i* not onl. a +air o)9e,t o+ re7en(e& )(t& )ein' a *4eet& it i* 9(*t {2%;} t5at t5e ,on*(mer* o+ it *5o(ld 0a. a d(t. a* 4ell a* t5e ,on*(mer* o+ *('ar1 !otton* and linen*& in t5eir 45ite *tate& +all (nder t5e *e,ond de*,ri0tion1 A d(t. (0on *(,5 a* are im0orted i* 0ro0er& to 0romote t5e dome*ti, man(+a,t(re o+ *imilar arti,le*& in t5e *ame *tate1 A dra4)a,2 o+ t5at d(t. i* 0ro0er& to en,o(ra'e t5e 0rintin' and *tainin'& at 5ome& o+ t5o*e 45i,5 are )ro('5t +rom a)road1 B5en t5e +ir*t o+ t5e*e (1014) man(+a,t(re* 5a* attained *(++i,ient mat(rit. in a ,o(ntr. to +(rni*5 a +(ll *(00l. +or t5e *e,ond& t5e (tilit. o+ t5e dra4)a,2 ,ea*e*1 T5e arti,le o+ 5em0 eit5er no4 doe*& or ma. )e ex0e,ted *oon to& exem0li+. t5e t5ird ,a*e in t5e United "tate*1 B5ere d(tie* on t5e material* o+ man(+a,t(re* are not laid +or t5e 0(r0o*e o+ 0re7entin' a ,om0etition 4it5 *ome dome*ti, 0rod(,tion& t5e *ame rea*on* 45i,5 re,ommend& a* a 'eneral r(le& t5e exem0tion o+ t5o*e material* +rom d(tie*& 4o(ld re,ommend& a* a li2e 'eneral r(le& t5e allo4an,e o+ dra4)a,2* in +a7or o+ t5e man(+a,t(rer1 A,,ordin'l.& *(,5 dra4)a,2* are +amiliar in ,o(ntrie* 45i,5 *.*temati,all. 0(r*(e t5e )(*ine** o+ man(+a,t(re*: 45i,5 +(rni*5e* an ar'(ment +or t5e o)*er7an,e o+ a *imilar 0oli,. in t5e United "tate*: and t5e idea 5a* )een ado0ted ). t5e la4* o+ t5e Union& in t5e in*tan,e* o+ *alt and mola**e*1 =t i* )elie7ed t5at it 4ill )e +o(nd ad7anta'eo(* to extend it to *ome ot5er arti,le*1 1. 0he encouragement of new intentions and discoveries at home, and of the introduction into the 2nited States of such as may have been made in other countries3 particularly, those which relate to machinery. T5i* i* amon' t5e mo*t (*e+(l and (nex,e0tiona)le o+ t5e aid* 45i,5 ,an )e 'i7en to man(+a,t(re*1 T5e (*(al mean* o+ t5at en,o(ra'ement are 0e,(niar. re4ard*& and& +or a time& ex,l(*i7e 0ri7ile'e*1 T5e +ir*t m(*t )e em0lo.ed& a,,ordin' to t5e o,,a*ion& and t5e (tilit. o+ t5e in7ention or di*,o7er.1 or t5e la*t& *o +ar 4 re*0e,t* @ a(t5or* and in7entor*&@ 0ro7i*ion 5a* )een made ). la41 $(t it i* de*ira)le& in re'ard to im0ro7ement*& {2%E} and *e,ret* o+ extraordinar. 7al(e& to )e a)le to extend t5e *ame )ene+it to introd(,er*& a* 4ell a* a(t5or* and in7entor*: a 0oli,. 45i,5 5a* )een 0ra,ti*ed 4it5 ad7anta'e in ot5er ,o(ntrie*1 Here& 5o4e7er& a* in *ome ot5er ,a*e*& t5ere i* ,a(*e to re'ret& t5at t5e ,om0eten,. o+ t5e a(t5orit. o+ t5e National Ao7ernment to t5e

'ood 45i,5 mi'5t )e done& i* not 4it5o(t a 6(e*tion1 Man. aid* mi'5t )e 'i7en to ind(*tr.& man. internal im0ro7ement* o+ 0rimar. ma'nit(de mi'5t )e 0romoted& ). an a(t5orit. o0eratin' t5ro('5o(t t5e Union& 45i,5 ,annot )e e++e,ted a* 4ell& i+ at all& ). an a(t5orit. ,on+irmed 4it5in t5e limit* o+ a *in'le "tate1 $(t& i+ t5e Ie'i*lat(re o+ t5e Union ,annot do all t5e 'ood t5at mi'5t )e 4i*5ed& it i*& at lea*t& de*ira)le t5at all ma. )e done 45i,5 i* 0ra,ti,a)le1 Mean* +or 0romotin' t5e introd(,tion o+ +orei'n im0ro7ement*& t5o('5 le** e++i,a,io(*l. t5em mi'5t )e a,,om0li*5ed 4it5 more ade6(ate a(t5orit.& 4ill +orm a 0art o+ t5e 0lan intended to )e *()mitted in t5e ,lo*e o+ t5i* re0ort1 =t i* ,(*tomar. 4it5 man(+a,t(rin' nation* to 0ro5i)it& (nder *e7ere 0enaltie*& t5e ex0ortation o+ im0lement* and ma,5ine*& 45i,5 t5e. 5a7e eit5er in7ented or im0ro7ed1 T5ere are alread. o)9e,t* +or a *imilar re'(lation in t5e United "tate*: and ot5er* ma. )e ex0e,ted to o,,(r& +rom time to time1 T5e ado0tion o+ it *eem* to )e di,tated ). t5e 0rin,i0le o+ re,i0ro,it.1 Areater li)eralit.& in *(,5 re*0e,t*& mi'5t )etter ,om0ort 4it5 t5e 'eneral (1015) *0irit o+ t5e ,o(ntr.: )(t a *el+i*5 and ex,l(*i7e 0oli,.& in ot5er 6(arter*& 4ill not al4a.* 0ermit t5e +ree ind(l'en,e o+ a *0irit 45i,5 4o(ld 0la,e (* (0on an (ne6(al +ootin'1 A* +ar a* 0ro5i)ition* tend to 0re7ent +orei'n ,om0etitor* +rom deri7in' t5e )ene+it o+ t5e im0ro7ement* made at 5ome& t5e. tend to in,rea*e t5e ad7anta'e* o+ t5o*e ). 45om t5e. ma. 5a7e )een introd(,ed& and o0erate a* an en,o(ra'ement to exertion1 4. 5udicious regulations for the inspection of manufactured commodities. T5i* i* not amon' t5e lea*t im0ortant o+ t5e mean* ). 45i,5 t5e 0ro*0erit. o+ man(+a,t(re* ma. )e 0romoted1 =t i*& indeed& {2%%} in man. ,a*e*& one o+ t5e mo*t e**ential1 !ontri)(tin' to 0re7ent +ra(d* (0on ,on*(mer* at 5ome& and ex0orter* to +orei'n ,o(ntrie*: to im0ro7e t5e 6(alit.& and 0re*er7e t5e ,5ara,ter o+ t5e national man(+a,t(re*: it ,annot +ill to aid t5e ex0editio(* and ad7anta'eo(* *ale o+ t5em& and to *er7e a* a '(ard a'ain*t *(,,e**+(l ,om0etition +rom ot5er 6(arter*1 T5e re0(tation o+ t5e +lo(r and l(m)er o+ *ome "tate*& and o+ t5e 0ota*5 o+ ot5er*& 5a* )een e*ta)li*5ed ). an attention to t5i* 0oint1 And t5e li2e 'ood name mi'5t )e 0ro,(red +or t5o*e arti,le*& 45ere*oe7er 0rod(,ed& ). a 9(di,io(* and (ni+orm *.*tem o+ in*0e,tion& t5ro('5o(t t5e 0ort* o+ t5e United "tate*1 A li2e *.*tem mi'5t al*o )e extended 4it5 ad7anta'e to ot5er ,ommoditie*1 "6. 0he facilitating of pecuniary remittances from place to place DD =* a 0oint o+ ,on*idera)le moment to trade in 'eneral& and to man(+a,t(re* in 0arti,(lar& ). renderin' more ea*. t5e 0(r,5a*e o+ ra4 material* and 0ro7i*ion*& and t5e 0a.ment +or man(+a,t(red *(00lie*1 A 'eneral ,ir,(lation o+ )an2 0a0er& 45i,5 i* to )e ex0e,ted +rom t5e in*tit(tion latel. e*ta)li*5ed& 4ill )e a mo*t 7al(a)le mean to t5i* end1 $(t m(,5 'ood 4o(ld al*o a,,r(e +rom *ome additional 0ro7i*ion* re*0e,tin' inland )ill* o+ ex,5an'e1 =+ t5o*e dra4n in one "tate& 0a.a)le in anot5er& 4ere made ne'otia)le e7er. 45ere& and intere*t and dama'e* allo4ed in ,a*e o+ 0rote*t& it 4o(ld 'reatl. 0romote ne'otiation* )et4een t5e ,itiCen* o+ di++erent "tate*& ). renderin' t5em more *e,(re& and 4it5 it t5e ,on7enien,e and ad7anta'e o+ t5e mer,5ant* and man(+a,t(rer* o+ ea,51 "". 0he facilitating of the transportation of commodities. =m0ro7ement* +a7orin' t5i* o)9e,t intimatel. ,on,ern all t5e dome*ti, intere*t* o+ a ,omm(nit.: )(t t5e. ma.& 4it5o(t im0ro0riet.& )e mentioned a* 5a7in'& an im0ortant relation to man(+a,t(re*1 T5ere i*& 0er5a0*& *,ar,el. an. t5in@ 45i,5 5a*

)een )etter ,al,(lated to a**i*t t5e man(+a,t(rer* o+ Areat $ritain& t5an t5e melioration o+ t5e 0()li, road* o+ t5at 2in'dom& {2%H} and t5e 'reat 0ro're** 45i,5 5a* )een o+ late made in o0enin' ,anal*1 O+ t5e +ormer& t5e United "tate* *tand m(,5 in need: +or t5e latter& t5e. 0re*ent (n,ommon +a,ilitie*1 T5e *.m0tom* o+ attention to t5e im0ro7ement o+ inland na7i'ation 45i,5 5a7e latel. a00eared in *ome 6(arter*& m(*t +ill 4it5 0lea*(re e7er. )rea*t& 4armed 4it5 a tr(e Ceal +or t5e 0ro*0erit. o+ t5e ,o(ntr.1 T5e*e exam0le*& it i* to )e 5o0ed& (1016) 4ill *tim(late t5e exertion* o+ t5e Ao7ernment and ,itiCen* o+ e7er. "tate1 T5ere ,an ,ertainl. )e no o)9e,t more 4ort5. o+ t5e ,are* o+ t5e lo,al admini*tration*: and it 4ere to )e 4i*5ed t5at t5ere 4a* no do()t o+ t5e 0o4er o+ t5e National Ao7ernment to lend it* dire,t aid on a ,om0re5en*i7e 0lan1 T5i* i* one o+ t5o*e im0ro7ement* 45i,5 ,o(ld )e 0ro*e,(ted 4it5 more e++i,a,. ). t5e 45ole& t5an ). an. 0art or 0art* o+ t5e Union1 T5ere are ,a*e* in 45i,5 t5e 'eneral intere*t 4ill )e in dan'er to )e *a,ri+i,ed to t5e ,olli*ion o+ *ome *(00o*ed lo,al intere*t*1 -ealo(*ie*& in matter* o+ t5i* 2ind& are a* a0t to exi*t& a* t5e. are a0t to )e erroneo(*1 T5e +ollo4in' remar2* are *(++i,ientl. 9(di,io(* and 0ertinent to de*er7e a literal 6(otation8 @Aood road*& ,anal*& and na7i'a)le ri7er*& ). dimini*5in' t5e ex0en*e o+ ,arria'e& 0(t t5e remote 0art* o+ a ,o(ntr. more nearl. (0on a le7el 4it5 t5o*e in t5e nei'5)or5ood o+ t5e to4n1 T5e. are& (0on t5at a,,o(nt& t5e 'reate*t o+ all im0ro7ement*1 T5e. en,o(ra'e t5e ,(lti7ation o+ t5e remote& 45i,5 m(*t al4a.* )e t5e mo*t exten*i7e ,ir,le o+ t5e ,o(ntr.1 T5e. are ad7anta'eo(* to t5e to4n& ). )rea2in' do4n t5e mono0ol. o+ t5e ,o(ntr. in it* nei'5)or5ood1 T5e. are ad7anta'eo(*& e7en to t5at 0art o+ t5e ,o(ntr.1 T5o('5 t5e. introd(,e *ome ri7al ,ommoditie* into t5e old mar2et& t5e. o0en man. #o4 mar2et* to it* 0rod(,e1 Mono0ol.& )e*ide*& i* a 'reat enem. to 'ood mana'ement& 45i,5 ,an ne7er )e (ni7er*all. e*ta)li*5ed& )(t in ,on*e6(en,e o+ t5at +ree and (ni7er*al ,om0etition& 45i,5 +or,e* e7er. )od. to 5a7e re,o(r*e to it +or t5e *a2e o+ *el+Dde+en,e1 =t i* not more t5an +i+t. .ear* a'o t5at *ome o+ t5e ,o(ntie* in t5e nei'5)or5ood o+ Iondon 0etitioned t5e 0arliament a'ain*t t5e exten*ion o+ t5e t(rn0i2e road* into t5e remoter ,o(ntie*1 T5o*e {2%7} remoter ,o(ntie*& t5e. 0retended& +rom t5e ,5ea0ne** o+ la)or& 4o(ld )e a)le to *ell t5eir 'ra** and ,orn ,5ea0er in t5e Iondon mar2et t5an t5em*el7e*& and t5e. 4o(ld t5ere). red(,e t5eir rent*& and r(in t5eir ,(lti7ation1 T5eir rent*& 5o4e7er& 5a7e ri*en& and t5eir ,(lti7ation 5a* )een im0ro7ed *in,e t5at time1@ "0e,imen* o+ a *0irit *imilar to t5at 45i,5 'o7erned t5e ,o(ntie* 5ere *0o2en o+& 0re*ent t5em*el7e* too +re6(entl. to t5e e.e o+ an im0artial o)*er7er& and render it a 4i*5 o+ 0atrioti*m& t5at t5e )od. in t5i* ,o(ntr.& in 45o*e ,o(n,il* a lo,al or 0artial *0irit i* it lea*t li2el. to 0redominate& 4ere at li)ert.& to 0(r*(e and 0romote t5e 'eneral intere*t& in t5o*e in*tan,e* in 45i,5 t5ere mi'5t )e dan'er o+ t5e inter+eren,e o+ *(,5 a *0irit1 T5e +ore'oin' are t5e 0rin,i0al o+ t5e mean* ). 45i,5 t5e 'ro4t5 o+ man(+a,t(re* i* ordinaril. 0romoted1 =t i*& 5o4e7er& not merel. ne,e**ar. t5at t5e mea*(re* o+ 'o7ernment& 45i,5 5a7e a dire,t 7ie4 to man(+a,t(re*& *5o(ld )e ,ir,(lated to a**i*t and 0rote,t t5em& )(t t5at t5o*e 45i,5 onl. ,ollaterall. a++e,t t5em in t5e 'eneral ,o(r*e o+ t5e admini*tration& *5o(ld )e '(arded +rom an. 0e,(liar tenden,. to in9(re t5em1 T5ere are ,ertain *0e,ie* o+ taxe*& 45i,5 are a0t to )e o00re**i7e to di++erent 0art* o+ t5e ,omm(nit.& and& amon' ot5er ill e++e,t*& 5a7e a 7er. (n+riendl. a*0e,t to4ard* man(+a,t(re*1 All 0oll or ,a0itation +ixe* are o+ t5i* nat(re1 T5e. eit5er 0ro,eed a,,ordin' to a +ixed rate& 45i,5 o0erate* (ne6(all. and in9(rio(*l. to t5e ind(*trio(* 0oor& (1017) or t5e. 7e*t a

di*,retion& in ,ertain o++i,er*& to ma2e e*timate* and a**e**ment*& 45i,5 are ne,e**aril. 7a'(e& ,on9e,t(ral& and lia)le to a)(*e1 T5e. o('5t& t5ere+ore& to )e a)*tained +rom in all )(t ,a*e* o+ di*tre**in' emer'en,.1 All *(,5 taxe* >in,l(din' all taxe* on o,,(0ation*? 45i,5 0ro,eed a,,ordin' to t5e amo(nt o+ ,a0ital *(00o*ed to )e em0lo.ed in a )(*ine**& or o+ 0ro+it* *(00o*ed to )e made in it& are& (na7oida)l. 5(rt+(l to ind(*tr.1 =t i* in 7ain t5at t5e e7il ma. )e endea7ored to )e miti'ated& ). lea7in' it& in t5e +ir*t in*tan,e& in t5e o0tion o+ t5e 0art. to )e taxed& to de,lare t5e amo(nt o+ 5i* ,a0ital or 0ro+it*1 Men en'a'ed in an. trade or )(*ine**& 5a7e ,ommonl. {2%8} 4ei'5t. rea*on* to a7oid di*,lo*(re*& 45i,5 4o(ld ex0o*e& 4it5 an. t5in' li2e a,,(ra,.& t5e real *tate o+ t5eir a++air*1 T5e. mo*t +re6(entl. +ind it )etter to ri*2 o00re**ion& t5an to a7ail t5em*el7e* o+ *o in,on7enient a re+('e& and t5e ,on*e6(en,e i*& t5at t5e. o+ten *(++er o00re**ion1 B5en t5e di*,lo*(re& too& i+ made& i* not de+initi7e& )(t ,ontrolla)le ). t5e di*,retion& or& in ot5er 4ord*& ). t5e 0a**ion* and 0re9(di,e* o+ t5e re7en(e o++i,er*& it i* not onl. an ine++e,t(al 0rote,tion& )(t t5e 0o**i)ilit. o+ it* )ein' *o& i* an additional rea*on +or not re*ortin' to it1 Allo4in' to t5e 0()li, o++i,er* t5e mo*t e6(ita)le di*0o*ition*& .et& 45ere t5e. are to exer,i*e a di*,retion 4it5o(t ,ertain data& t5e. ,annot +ail to )e o+ten mi*led ). a00earan,e*1 T5e 6(antit. o+ )(*ine** 45i,5 *eem* to )e 'oin' on& i*& in a 7a*t n(m)er o+ ,a*e*& a 7er. de,eit+(l ,riterion o+ t5e 0ro+it* 45i,5 are made: .et it i*& 0er5a0*& t5e )e*t t5e. ,an 5a7e& and it i* t5e one on 45i,5 t5e. 4ill mo*t nat(rall. rel.1 A )(*ine**& t5ere+ore& 45i,5 ma. rat5er re6(ire aid +rom t5e Ao7ernment& t5an )e in a ,a0a,it. to )e ,ontri)(tor. to it& mt. +ind it*el+ ,r(*5ed ). t5e mi*ta2en ,on9e,t(re* o+ t5e a**e**or* o+ taxe*1 Ar)itrar. taxe*& (nder 45i,5 denomination are ,om0ri*ed an t5o*e t5at lea7e t5e 6(ant(m o+ t5e tax to )e rai*ed on ea,5 0er*on to t5e di*,retion o+ ,ertain o++i,er*& are a* ,ontrar. to t5e 'eni(* o+ li)ert. a* to t5e maxim* o+ ind(*tr.1 =n t5i* li'5t t5e. 5a7e )een 7ie4ed ). t5e mo*t 9(di,io(* o)*er7er* on Ao7ernment& 45o 5a7e )e*to4ed (0on t5em t5e *e7ere*t e0it5et* o+ re0ro)ation& a* ,on*tit(tin' one o+ t5e 4or*t +eat(re* (*(all. to )e met 4it5 in t5e 0ra,ti,e o+ de*0oti, 'o7ernment*1 =t i* ,ertain& at lea*t& t5at *(,5 taxe* are 0arti,(larl. inimi,al to t5e *(,,e** o+ man(+a,t(rin' ind(*tr.& and o('5t ,are+(ll. to )e a7oided ). a 'o7ernment 45i,5 de*ire* to 0romote it1 T5e 'reat ,o0io(*ne** o+ t5e *()9e,t o+ t5i* re0ort 5a* in*en*i)l. led to a more len't5. 0reliminar. di*,(**ion t5an 4a* ori'inall. ,ontem0lated or intended1 =t a00eared 0ro0er to in7e*ti'ate 0rin,i0le*& to ,on*ider o)9e,tion*& and to ,n;ea7or to e*ta)li*5 t5e (tilit. o+ t5e t5in' 0ro0o*ed to )e en,o(ra'ed& 0re7io(* to a *0e,i+i,ation o+ t5e o)9e,t* 45i,5 mi'5t o,,(r& a* {2%9} meritin'& or re6(irin' en,o(ra'ement& and o+ t5e mea*(re* 45i,5 mi'5t )e 0ro0er in re*0e,t to ea,51 T5e +ir*t 0(r0o*e 5a7in' )een +(l+illed& it remain* to 0(r*(e t5e *e,ond1 (1018) =n t5e *ele,tion o+ o)9e,t*& +i7e ,ir,(m*tan,e* *eem entitled to 0arti,(lar attention1 T5e ,a0a,it. o+ t5e ,o(ntr. to +(rni*5 t5e ra4 material: t5e de'ree in 45i,5 t5e nat(re o+ t5e man(+a,t(re admit* o+ a *()*tit(te +or man(al la)or in ma,5iner.: t5e +a,ilit. o+ exe,(tion : t5e exten*i7ene** o+ t5e (*e* to 45i,5 t5e arti,le ,an )e a00lied: it* *()*er7ien,. to ot5er intere*t*& 0arti,(larl. t5e 'reat one o+ national de+en,e1 T5ere are& 5o4e7er& o)9e,t* to 45i,5 t5e*e ,ir,(m*tan,e* are little a00li,a)le& 45i,5& +or *ome *0e,ial rea*on*& ma. 5a7e a ,laim to en,o(ra'ement1

A de*i'nation o+ t5e 0rin,i0al ra4 material o+ 45i,5 ea,5 man(+a,t(re i* ,om0o*ed& 4ill *er7e to introd(,e t5e remar2* (0on it: a*& in t5e +ir*t 0la,e& =RON1 T5e man(+a,t(re* o+ t5i* arti,le are entitled to 0reDeminent ran21 None are more e**ential in t5eir 2ind*& nor *o exten*i7e in t5eir (*e*1 T5e. ,on*tit(te& in 45ole& or in 0art& t5e im0lement* or t5e material*& or )ot5& o+ almo*t e7er. (*e+(l o,,(0ation1 T5eir in*tr(mentalit. i* e7er.& 45ere ,on*0i,(o(*1 =t i* +ort(nate +or t5e United "tate* t5at t5e. 5a7e 0e,(liar ad7anta'e* +or deri7in' t5e +(ll )ene+it o+ t5i* mo*t 7al(a)le material& and t5e. 5a7e e7er. moti7e to im0ro7e it 4it5 *.*temati, ,are1 =t i* to )e +o(nd in 7ario(* 0art* o+ t5e United "tate*& in 'reat a)(ndan,e& and o+ almo*t e7er. 6(alit.: and +(el& t5e ,5ie+ in*tr(ment in man(+a,t(rin' it& i* )ot5 ,5ea0 and 0lent.1 T5i* 0arti,(larl. a00lie* to ,5ar,oal: )(t t5ere are 0rod(,ti7e ,oal mine* alread. in o0eration& and *tron' indi,ation* t5at t5e material i* to )e +o(nd in a)(ndan,e& in a 7ariet. o+ ot5er 0la,e*1 T5e in6(irie* to 45i,5 t5e *()9e,t o+ t5i* re0ort 5a* led& 5a7e )een an*4ered 4it5 0roo+* t5at man(+a,torie* o+ iron& t5o('5 'enerall. (nder*tood to )e exten*i7e& are +ar more *o t5an i* ,ommonl. *(00o*ed1 T5e 2ind* in 45i,5 t5e 'reate*t {2H/} 0ro're** 5a* )een made& 5a7e )een mentioned in anot5er 0la,e& and need not )e re0eated : )(t t5ere i* little do()t t5at e7er. ot5er 2ind& 4it5 d(e ,(lti7ation& 4ill ra0idl. *(,,eed1 =t i* 4ort5. o+ remar2& t5at *e7eral o+ t5e 0arti,(lar trade* o+ 45i,5 it i* t5e )a*i*& are ,a0a)le o+ )ein' ,arried on 4it5o(t t5e aid o+ lar'e ,a0ital*1 1 =ronD4or2* 5a7e 'reatl. in,rea*ed in t5e United "tate*& and are 0ro*e,(ted 4it5 m(,5 more ad7anta'e t5an +ormerl.1 T5e a7era'e 0ri,e& )e+ore t5e Re7ol(tion& 4a* a)o(t *ixt.D+o(r dollar* 0er ton: at 0re*ent& it i* a)o(t ei'5t.Da ri*e 45i,5 i* ,5ie+l. to )e attri)(ted to t5e in,rea*e o+ man(+a,t(re* o+ t5e material1 T5e *till +(rt5er exten*ion and m(lti0li,ation o+ *(,5 man(+a,t(re* 4ill 5a7e t5e do()le e++e,t o+ 0romotin' t5e extra,tion o+ t5e metal it*el+& and o+ ,on7ertin' it to a 'reater n(m)er o+ 0ro+ita)le 0(r0o*e*1 T5o*e man(+a,t(re*& too& (nite& in a 'reater de'ree t5an almo*t an. ot5er*& t5e *e7eral re6(i*ite* 45i,5 5a7e )een mentioned a* 0ro0er to )e ,on*(lted in t5e *ele,tion o+ o)9e,t*1 T5e onl. +(rt5er en,o(ra'ement o+ man(+a,torie* o+ t5i* arti,le& t5e 0ro0riet. o+ 45i,5 ma. )e ,on*idered a* (n6(e*tiona)le& *eem* to )e an (1019) in,rea*e o+ t5e d(tie* on +orei'n ri7al ,ommoditie*1 "teel i* a )ran,5 45i,5 5a* alread. made a ,on*idera)le 0ro're**& and it i* a*,ertained t5at *ome no4 enter0ri*e*& on a more exten*i7e *,ale& 5a7e )een latel. *et oil +oot1 T5e +a,ilit. o+ ,arr.in' it to all extent 45i,5 4ill *(00l. all internal demand*& and +(rni*5 a ,on*idera)le *(r0l(* +or ex0ortation& ,annot )e do()ted1 T5e d(t. (0on t5e im0ortation o+ t5i* arti,le& 45i,5 i*& at 0re*ent& *e7ent.D+i7e ,ent* 0er ,4t1 ma.& it i* ,on,ei7ed& )e *a+el. and ad7anta'eo(*l. extended to one 5(ndred ,ent*& =t i* de*ira)le& ). de,i*i7e arran'ement*& to *e,ond t5e e++ort* 45i,5 are ma2in' in *o 7er. 7al(a)le a )ran,51 T5e United "tate* alread.& in a 'reat mea*(re& *(00l. t5em*el7e* 4it5 nail* and *0i2e*1 T5e. are a)le& and o('5t ,ertainl. to do it& entirel.1 T5e +ir*t and mo*t la)orio(* o0eration& in t5i* man(+a,t(re& i* 0er+ormed ). 4aterDmill*: and o+ t5e 0er*on* a+ter4ard* em0lo.ed& a 'reat 0ro0ortion are )o.*& 45o*e earl. {2H1} 5a)it* o+ ind(*tr. are o+ im0ortan,e to t5e ,omm(nit.& to t5e 0re*ent *(00ort o+ t5eir +amilie*& and to t5eir

o4n +(t(re ,om+ort1 =t i* not le** ,(rio(* t5an tr(e& t5at& in ,ertain 0art* o+ t5e ,o(ntr.& t5e ma2in' o+ nail* i* an o,,a*ional +amil. man(+a,t(re1 T5e ex0edien,. o+ an additional d(t. on t5e*e arti,le*& i* indi,ated ). an im0ortant +a,t1 A)o(t 1&8//&/// 0o(nd* o+ t5em 4ere im0orted into t5e United "tate*& in t5e ,o(r*e o+ a .ear& endin' t5e ;/t5 o+ "e0tem)er& 179/1 A d(t. o+ t4o ,ent* 0er 0o(nd 4o(ld& it i* 0re*(ma)le& *0eedil. 0(t an end to *o ,on*idera)le an im0ortation1 And it i*& in e7er. 7ie4& 0ro0er t5at an end *5o(ld )e 0(t to it1 T5e man(+a,t(re o+ t5e*e arti,le*& li2e t5at O+ *ome ot5er*& *(++er* +rom t5e ,arele**ne** and di*5one*t. o+ a 0art o+ t5o*e 45o ,arr. it on1 An in*0e,tion in ,ertain ,a*e* mi'5t tend to ,orre,t t5e e7il1 =t 4ill de*er7e ,on*ideration 45et5er a re'(lation o+ t5i* *ort ,annot )e a00lied& 4it5o(t in,on7enien,e& to t5e ex0ortation o+ t5e arti,le*& eit5er to +orei'n ,o(ntrie*& or +rom one "tate to anot5er1 T5e im0lement* o+ 5(*)andr. are made in *e7eral "tate* in 'reat a)(ndan,e1 =n man. 0la,e*& it i* done ). t5e ,ommon )la,2*mit5*1 And t5ere i* no do()t t5at an am0le *(00l. +or t5e 45ole ,o(ntr. ,an& 4it5 'reat ,a*e& )e 0ro,(red amon' o(r*el7e*1 Pario(* 2ind* o+ ed'ed tool* +or t5e (*e o+ me,5ani,* are al*o made: and a ,on*idera)le 6(antit. o+ 5ollo4 4are*& t5o('5 t5e )(*ine** o+ ,a*tin'* 5a* not .et attained t5e 0er+e,tion 45i,5 mi'5t )e 4i*5ed1 =t i*& 5o4e7er& im0ro7in'& and a* t5ere are re*0e,ta)le ,a0ital*& in 'ood 5and*& em)ar2ed in t5e 0ro*e,(tion o+ t5o*e )ran,5e* o+ iron man(+a,torie*& 45i,5 are .et in t5eir in+an,.& t5e. ma. all )e ,ontem0lated a* o)9e,t* not di++i,(lt to )e a,6(ired1 To in*(re t5e end& it *eem* e6(all. *a+e and 0r(dent& to extend t5e d(t.& ad 7alorem& (0on all man(+a,t(re* o+ iron& or o+ 45i,5 iron i* t5e arti,le o+ ,5ie+ 7al(e& to ten 0er ,ent1 ireDarm* and ot5er militar. 4ea0on* ma.& it i* (1020) ,on,ei7ed& )e 0la,ed& 4it5o(t in,on7enien,e& in t5e ,la** o+ arti,le* rated at {2H2} +i+teen 0er ,ent1 T5ere are& alread.& man(+a,torie* o+ t5e*e arti,le*& 45i,5 onl. re6(ire t5e *tim(l(* o+ a ,ertain demand to render t5em ade6(ate to t5e *(00l. o+ t5e United "tate*1 =t 4o(ld& al*o& )e a material aid to man(+a,t(re* o+ t5i* nat(re& a* 4ell a* a mean o+ 0()li, *e,(rit.& i+ 0ro7i*ion *5o(ld )e made +or an ann(al 0(r,5a*e o+ militar. 4ea0on*& o+ 5ome man(+a,t(re& to a ,ertain determinate extent& in order to t5e +ormation o+ ar*enal*: and to re0la,e& +rom time to time& *(,5 a* *5o(ld )e dra4n +or (*e& *o a* al4a.* to 5a7e in *tore t5e 6(antit. o+ ea,5 2ind 45i,5 *5o(ld )e deemed a ,om0etent *(00l.1 $(t it ma.& 5erea+ter& de*er7e le'i*lati7e ,on*ideration& 45et5er man(+a,torie* o+ all t5e ne,e**ar. 4ea0on* o+ 4ar o('5t not to )e e*ta)li*5ed& on a,,o(nt o+ t5e 'o7ernment it*el+ "(,5 e*ta)li*5ment* are a'reea)le to t5e (*(al 0ra,ti,e o+ nation*& and t5at 0ra,ti,e *eem* +o(nded on *(++i,ient rea*on1 T5ere a00ear* to )e an im0ro7iden,e in lea7in' t5e*e e**ential in*tr(ment* o+ national de+en,e to t5e ,a*(al *0e,(lation* o+ indi7id(al ad7ent(re* re*o(r,e 45i,5 ,an le** )e relied (0on& in t5i* ,a*e& t5an in mo*t ot5er*: t5e arti,le* in 6(e*tion not )ein' o)9e,t* o+ ordinar. and indi*0en*a)le 0ri7ate ,on*(m0tion or (*e1 A* a 'eneral r(le& man(+a,torie* on t5e immediate a,,o(nt o+ 'o7ernment are to )e a7oided: )(t t5i* *eem* to )e one o+ t5e +e4 ex,e0tion* 45i,5 t5at r(le admit*& de0endin' on 7er. *0e,ial rea*on*1 Man(+a,t(re* o+ *teel& 'enerall.& or o+ 45i,5 *teel i* t5e arti,le o+ ,5ie+ 7al(e& ma.& 4it5 ad7anta'e& )e 0la,ed in t5e ,la** o+ 'ood* rated at *e7en and a 5al+ 0er ,ent1 A* man(+a,t(re* o+ t5i* 2ind 5a7e not .et made an. ,on*idera)le 0ro're**& it i* a

rea*on +or not ratin' t5em a* 5i'5 a* t5o*e o+ iron8 )(t& a* t5i* material i* t5e )a*i* o+ t5em& and a* t5eir exten*ion i* not le** 0ra,ti,a)le t5an im0ortant& it i* de*ira)le to 0romote it ). a *ome45at 5i'5er d(t. t5an t5e 0re*ent1 A 6(e*tion ari*e*& 5o4 +ar it mi'5t )e ex0edient to 0ermit t5e im0ortation o+ iron& in 0i'* and )ar*& +ree +rom d(t.1 =t 4o(ld ,ertainl. )e +a7ora)le to man(+a,t(re* o+ t5e arti,le: )(t t5e do()t i*& 45et5er it mi'5t not inter+ere 4it5 it* 0rod(,tion1 T4o ,ir,(m*tan,e*& 5o4e7er& a)ate& i+ t5e. do not remo7e {2H;} a00re5en*ion& on t5i* *,ore: one i*& t5e ,on*idera)le in,rea*e o+ 0ri,e 45i,5 5a* )een alread. remar2ed& and 45i,5 render* it 0ro)a)le t5at t5e +ree admi**ion o+ +orei'n iron 4o(ld #ot )e in,on*i*tent 4it5 an ade6(ate 0ro+it to t5e 0ro0rietor* o+ iron4or2*: t5e ot5er i* t5e a('mentation o+ demand 45i,5 4o(ld )e li2el. to attend t5e in,rea*e o+ man(+a,t(re* o+ t5e arti,le in ,on*e6(en,e o+ t5e additional en,o(ra'ement* 0ro0o*ed to )e 'i7en1 $(t ,a(tion ne7ert5ele**& in a matter o+ t5i* 2ind& i* mo*t ad7i*a)le1 T5e mea*(re *(''e*ted o('5t& 0er5a0*& rat5er to )e ,ontem0lated *()9e,t to t5e li'5t* o+ +(rt5er ex0erien,e& t5an immediatel. ado0ted1 111 [omitted *e,tion* ,o7er ot5er *0e,i+i, ,ommoditie*8 !OPPER: IEA#: O""=I !OAI: BOO#: "R=N": ARA=N: IAS AN# HEMP: !OTTON: BOOI: "=IR: AIA"": AUNPOB#ER: PAPER: PR=NTE# $OOR"] 111 {28/} RE =NE# "UAAR" AN# !HO!OIATE Are amon' t5e n(m)er o+ exten*i7e and 0ro*0ero(* dome*ti, man(+a,t(re*1 #ra4)a,2* o+ t5e d(tie* (0on t5e material* o+ 45i,5 t5e. are re*0e,ti7el. made& in ,a*e* o+ ex0ortation& 4o(ld 5a7e a )ene+i,ial in+l(en,e (0on t5e man(+a,t(re& and 4o(ld ,on+orm to a 0re,edent 45i,5 5a* )een alread. +(rni*5ed in t5e in*tan,e o+ mola**e*& on t5e ex0ortation o+ di*tilled *0irit*1 !o,oa& t5e ra4 material& no4 0a.* a d(t. o+ one ,ent 0er 0o(nd& 45ile ,5o,olate& 45i,5 i* a 0re7ailin' and 7er. *im0le man(+a,t(re& i* ,om0ri*ed in t5e ma** o+ arti,le* rated at no more t5an +i7e 0er ,ent1 T5ere 4o(ld a00ear to )e a 0ro0riet. in en,o(ra'in' t5e man(+a,t(re ). a *ome45at 5i'5er d(t. on it* +orei'n ri7al& t5an i* 0aid on t5e ra4 material1 T4o ,ent* 0er 0o(nd on im0orted ,5o,olate& 4o(ld& it i* 0re*(med& )e 4it5o(t in,on7enien,e1 (1032) T5e +ore'oin' 5ead* ,om0ri*e t5e mo*t im0ortant o+ t5e *e7eral 2ind* o+ man(+a,t(re* 45i,5 5a7e o,,(rred a* rH6(irin'& and& at t5e *ame time& a* mo*t 0ro0er +or 0()li, en,o(ra'ement: and *(,5 mea*(re* +or a++ordin' it a* 5a7e a00eared )e*t ,al,(lated to an*4er t5e end& 5a7e )een *(''e*ted1 T5e o)*er7ation* 45i,5 5a7e a,,om0anied t5i* delineation o+ o)9e,t*& *(0er*ede t5e ne,e**it. o+ man. *(00lementar. remar2*1 One or t4o& 5o4e7er& ma. not )e alto'et5er *(0er+l(o(*1 $o(ntie* are& in 7ario(* in*tan,e*& 0ro0o*ed& a* one *0e,ie* o+ en,o(ra'ement1 =t i* a +amiliar o)9e,tion to t5em& t5at t5e. D&ire di++i,(lt to )e mana'ed& and lia)le to +ra(d*1 $(t neit5er t5at di++i,(lt. nor t5i* dan'er *eem* *(++i,ientl. 'reat to ,o(nter7ail t5e ad7anta'e* o+ 45i,5 t5e. are 0rod(,ti7e& 45en ri'5tl. a00lied1 And it i* 0re*(med to 5a7e )een *5o4n& t5at t5e. are& in *ome ,a*e* 0arti,(larl. in t5e in+an,. o+ ne4 enter0ri*e*& indi*0en*a)le1 =t 4ill& 5o4e7er& )e ne,e**ar. to '(ard& 4it5 extraordinar. {281} ,ir,(m*0e,tion& t5e manner o+ di*0en*in' t5em1 T5e re6(i*ite 0re,a(tion* 5a7e )een t5o('5t o+& )(t to enter into t5e

detail& 4o(ld *4ell t5i* re0ort& alread. 7ol(mino(*& to a *iCe too in,on7enient1 =+ t5e 0rin,i0le *5all not )e deemed inadmi**i)le& t5e mean* o+ a7oidin' an a)(*e o+ it 4ill not )e li2el. to 0re*ent in*(rmo(nta)le o)*ta,le*1 T5ere are (*e+(l '(ide* +rom 0ra,ti,e in ot5er 6(arter*1 =t *5all& t5ere+ore& onl. )e remar2ed 5ere& in relation to t5i* 0oint& t5at an. )o(nt. 45i,5 ma. )e a00lied to t5e man(+a,t(re o+ an arti,le& ,annot& 4it5 *a+et.& extend )e.ond t5o*e man(+a,torie* at 45i,5 t5e ma2in' o+ t5e arti,le i* a re'(lar trade1 =t 4o(ld )e im0o**i)le to annex ade6(ate 0re,a(tion* to a )ene+it o+ t5at nat(re& i+ extended to e7er. 0ri7ate +amil. in 45i,5 t5e man(+a,t(re 4a* in,identall. ,arried on: and it* )ein' a merel. in,idental o,,(0ation& 45i,5 en'a'e* a 0ortion o+ time t5at 4o(ld ot5er4i*e )e lo*t& it ,an )e ad7anta'eo(*l. ,arried on 4it5o(t *o *0e,ial an aid1 T5e 0o**i)ilit. o+ a dimin(tion o+ t5e re7en(e ma. al*o 0re*ent it*el+ a* an o)9e,tion to t5e arran'ement* 45i,5 5a7e )een *()mitted1 $(t t5ere i* no tr(t5 45i,5 ma. )e more +irml. relied (0on& t5an t5at t5e intere*t* o+ t5e re7en(e are 0romoted ). 45ate7er 0romote* an in,rea*e o+ national ind(*tr. and 4ealt51 =n 0ro0ortion to t5e de'ree o+ t5e*e& i* t5e ,a0a,it. o+ e7er. ,o(ntr. to ,ontri)(te to t5e 0()li, trea*(r.: and 45ere t5e ,a0a,it. to 0l. i* in,rea*ed& or e7en i* not de,rea*ed& t5e onl. ,on*e6(en,e o+ mea*(re* 45i,5 dimini*5 an. 0arti,(lar re*o(r,e& i* a ,5an'e o+ t5e o)9e,t1 =+& ). en,o(ra'in' t5e man(+a,t(re o+ an arti,le at 5ome& t5e re7en(e 45i,5 5a* )een 4ont to a,,r(e +rom it* im0ortation *5o(ld )e le**ened& an indemni+i,ation ,an ea*il. )e +o(nd& eit5er o(t o+ t5e man(+a,t(re it*el+& or +rom *ome ot5er o)9e,t 45i,5 ma. )e deemed more ,on7enient1 = T5e mea*(re*& 5o4e7er& 45i,5 5a7e )een *()mitted& ta2en a''re'atel.& 4ill& +or a lon' time to ,ome& rat5er a('ment t5an de,rea*e t5e 0()li, re7en(e1 T5ere i* little room to 5o0e& t5at t5e 0ro're** o+ man(+a,t(re* {282} 4ill *o e6(all. 2ee0 0a,e 4it5 t5e 0ro're** o+ 0o0(lation& a* to 0re7ent e7en a (1033) 'rad(al a('mentation o+ t5e 0rod(,t o+ t5e d(tie* on im0orted arti,le*1 A*& ne7ert5ele**& an a)olition in *ome in*tan,e*& and a red(,tion in ot5er*& o+ d(tie* 45i,5 5a7e )een 0led'ed +or t5e 0()li, de)t& i* 0ro0o*ed& it i* e**ential t5at it *5o(ld )e a,,om0anied 4it5 a ,om0etent *()*tit(te1 =n order to t5i*& it i* re6(i*ite t5at all t5e additional d(tie* 45i,5 *5all )e laid& )e a00ro0riated& in t5e +ir*t in*tan,e& to re0la,e all de+al,ation* 45i,5 ma. 0ro,eed +rom an. *(,5 a)olition or dimin(tion1 =t i* e7ident& at +ir*t 'lan,e& t5at t5e. 4ill not onl. )e ade6(ate to t5i*& )(t 4ill .ield a ,on*idera)le *(r0l(*1 T5i* *(r0l(* 4ill *er7e DD ir*t1 To ,on*tit(te a +(nd +or 0a.in' t5e )o(ntie* 45i,5 *5all 5a7e )een de,reed1 "e,ondl.1 To ,on*tit(te a +(nd +or t5e o0eration* o+ a )oard to )e e*ta)li*5ed& +or 0romotin' art*& a'ri,(lt(re& man(+a,t(re*& and ,ommer,e1 O+ t5i* in*tit(tion& di++erent intimation* 5a7e )een 'i7en in t5e ,o(r*e o+ t5i* re0ort1 An o(tline o+ a 0lan +or it *5all no4 )e *()mitted1 Iet a ,ertain ann(al *(m )e *et a0art& and 0la,ed (nder t5e mana'ement o+ ,ommi**ioner*& not le** t5an t5ree& to ,on*i*t o+ ,ertain o++i,er* o+ t5e Ao7ernment and t5eir *(,,e**or* in o++i,e1 Iet t5e*e ,ommi**ioner* )e em0o4ered to a00l. t5e +(nd ,on+ided to t5em& to de+ra. t5e ex0en*e* o+ t5e emi'ration o+ arti*t*& and man(+a,t(rer* in 0arti,(lar )ran,5e* o+ extraordinar. im0ortan,e: to ind(,e t5e 0ro*e,(tion and introd(,tion o+ (*e+(l di*,o7erie*& in7ention*& and im0ro7ement*& ). 0ro0ortionate re4ard*& 9(di,io(*l. 5eld o(t and a00lied: to en,o(ra'e ). 0remi(m*& )ot5 5onora)le and l(,rati7e& t5e exertion* o+

indi7id(al* and o+ ,la**e*& in relation to t5e *e7eral o)9e,t* t5e. are ,5ar'ed 4it5 0romotin': and to a++ord *(,5 ot5er aid* to t5o*e o)9e,t* a* ma. )e 'enerall. de*i'nated ). la41 T5e ,ommi**ioner* to render to t5e Ie'i*lat(re an ann(al a,,o(nt o+ t5eir tran*a,tion* and di*)(r*ement*: and all *(,5 *(m* a* *5all not 5a7e )een a00lied to t5e 0(r0o*e* o+ t5eir tr(*t& at t5e end o+ e7er. t5ree .ear*& to re7ert to t5e trea*(r.11 =t ma.& al*o& ) , en9oined (0on t5em not to dra4 o(t t5e mone.& )(t +or t5e 0(r0o*e o+ *ome *0e,i+i, di*)(r*ement1 {28;} =t ma.& moreo7er& )e o+ (*e to a(t5oriCe t5em to re,ei7e 7ol(ntar. ,ontri)(tion*& ma2in' it t5eir d(t. to a00l. t5em to t5e 0arti,(lar o)9e,t* +or 45i,5 t5e. ma. 5i7e )een made& i+ an. *5all 5a7e )een de*i'nated ). t5e donor*1 T5ere i* rea*on to )elie7e t5at t5e 0ro're** o+ 0arti,(lar man(+a,t(re* 5a* )een m(,5 retarded ). t5e 4ant o+ *2il+(l 4or2men1 And it o+ten 5a00en*& t5at t5e ,a0ital* em0lo.ed are not e6(al to t5e 0(r0o*e* o+ )rin'in' +rom a)road 4or2men o+G a *(0erior 2ind1 Here& in ,a*e* 4ort5. o+ it& t5e a(xiliar. a'en,. o+ Ao7ernment 4o(ld& in all 0ro)a)ilit.& )e (*e+(l1 T5ere are al*o 7al(a)le 4or2men in e7er. )ran,5& 45o are 0re7ented +rom emi'ratin'& *olel.& ). t5e 4ant o+ mean*1 O,,a*ional aid* to *(,5 0er*on*& 0ro0erl. admini*tered& mi'5t )e a *o(r,e o+ 7al(a)le a,6(i*ition* to t5e ,o(ntr.1 T5e 0ro0riet. o+ *tim(latin' ). re4ard* t5e in7ention and introd(,tion o+ (*e+(l im0ro7ement*& i* admitted 4it5o(t di++i,(lt.1 $(t t5e *(,,e** o+ attem0t* in t5i* 4a.& m(*t e7identl. de0end m(,5 on t5e manner o+ ,ond(,tin' t5em1 (1034) =t i* 0ro)a)le t5at t5e 0la,in' o+ t5e di*0en*ation o+ t5o*e re4ard* (nder *ome 0ro0er di*,retionar. dire,tion& 45ere t5e. ma. )e a,,om0anied ). ,ollateral ex0edient*& 4ill *er7e to 'i7e t5em t5e *(re*t e++i,a,.1 =t *eem* im0ra,ti,a)le to a00ortion& ). 'eneral r(le*& *0e,i+i, ,om0en*ation* +or di*,o7erie* o+ (n2no4n and di*0ro0ortionate (tilit.1 T5e 'reat (*e 45i,5 ma. )e made o+ a +(nd o+ t5i* nat(re& to 0ro,(re and im0ort +orei'n im0ro7ement*& i* 0arti,(larl. o)7io(*1 Amon' t5e*e& t5e arti,le o+ ma,5ine* 4o(ld +orm a mo*t im0ortant item1 T5e o0eration and (tilit. o+ 0remi(m* 5a7e )een ad7erted to& to'et5er 4it5 t5e ad7anta'e* 45i,5 5a7e re*(lted +rom t5eir di*0en*ation& (nder t5e dire,tion o+ ,ertain 0()li, and 0ri7ate *o,ietie*1 O+ t5i*& *ome ex0erien,e 5a* )een 5ad& in t5e in*tan,e o+ t5e Penn*.l7ania "o,iet. +or t5e 0romotion o+ man(+a,torie* and (*e+(l art*: )(t t5e +(nd* o+ t5at a**o,iation 5a7e )een too& ,ontra,ted to 0rod(,e more t5an a 7er. *mall 0ortion o+ t5e 'ood to 45i,5 t5e 0rin,i0le* o+ it 4o(ld 5a7e led1 =t ma. ,on+identl. )e a++irmed& t5at t5ere i* *,ar,el. an. t5in' 45i,5 5a* {28E} )een de7i*ed& )etter ,al,(lated to ex,ite a 'eneral *0irit o+ im0ro7ement& t5an t5e in*tit(tion* o+ t5i* nat(re1 T5e are tr(l. in7al(a)le1 =n ,o(ntrie* 45ere t5ere i* 'reat 0ri7ate 4ealt5& m(,5 ma. )e e++e,ted ). t5e 7ol(ntar. ,ontri)(tion* o+ 0atrioti, indi7id(al*: )(t in a ,omm(nit. *it(ated li2e t5at o+ t5e United "tate*& t5e 0()li, 0(r*e m(*t *(00l. t5e de+i,ien,. o+ 0ri7ate re*o(r,e1 =n 45at ,an it )e *o (*e+(l& a* in 0rom0tin' and im0ro7in' t5e e++ort* o+ ind(*tr.L All 45i,5 i* 5(m)l. *()mitted1 AIESAN#ER HAM=ITON& Secretary of the 0reasury.