Harmony of interests, agricultural, manufacturing and commercial

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THE
HAKMONY OF INTERESTS.
AGRICULTURAL, MANUFACTURING,
COMMERCIAL.
BY
HENRY C; CAREY,
t13TB0R or "PRIlfCIPLES OF POLITICAL ECONOMY," "tHB PAS'^ PBSSBSIT, ASU FUTUBX,"
ETC. ETC.
• Mr. Caret, the well-known statistical writer of America, has supplied ns with ample
materials for conducting such an inquiry ; and we can safely recommend his remarkabla
work to all who wish to investigate the causes of the progress and decline of industrial
temmunities."
—
Blackwood's Magazine.
Secoud SIdition.
NEW-YORK:
MTEOK FINCH, 122 NASSAU STREET.
a7ricc 07 THC rLouan, ths look, aid thk ahvil,
1856.
ENTERKD, ACCORDING TO ACT OF COKQRESS, IN THE TEAR 1852, BT
MZRON FINCH,
I» THB OLERZ'8 OFFICE OF THE DISTRICT COURT OF THE UNITED STATED FOR THE
BOUTHSRN DISTRIOT OF NEW-TORK.
fffiM'Tl
PREFACE
The tendency of the whole British system of political economy is to the production
of discord among men and nations. It is based upon the Rlcardo and Malthusian doc-trines
of rent and population, which teach that men every where commence the work of
cultivation on the rich soils of the earth, and that, when population is email, food is
abundant ; but that as numbers increase, men are forced to resort to poorer soils, yielding
steadily less and less in return to labor. As a necessai-y consequence of the increasing
scarcity of fertile soils, it is held that with this diminishing return, the land-holder is
enabled to take a larger proportion of the proceeds of labor, thus profiting at the cost
of the laborer, and by reason of the same causes which tend to the gradual subjugation
of the latter to the will of hia master. Here are, of course, lying at the very founda-tion
of the system, discordant interests, and this discord is found in every succeed-ing
portion of it. Over-populaHon is held to be a result of a great law of nature, in
virtue of which men grow in numbers faster than can grow the food that is to nourish
them ; and the poverty, vice, and crime that everywhere exist, are regarded as necessary
consequences of this great law, emanating from an all-wise, all-powerful, and all merci-ful
Being. War, famine, and pestilence are regarded as means provided by that Being
for restraining population within the limits of subsistence. Charity is regarded as
almost a crime, because it tends to promote the growth of population. The landlord
excuses himself for taking large rents, on the ground that it is a necessary consequence of
the natural tendency of man to increase in numbers with too great rapidity. The stock-holder
of the East India Company, who luxuriates upon the produce of his stock,
regards it as one of the natural consequences of this great law that he should receive, as
rent, so large a portion of the proceeds of labor applied to cultivation, as to leave to
the poor cultivator but half a dollar per month, out of which to supply himself and his
family with food, raiment, and shelter ; and excuses himself to his conscience, on the
ground that it is a necessary result of great natural laws. Capital cannot become more
productive, except at the cost of labor ; nor can wages rise, except at the cost of capital.
Among the consequences of this great law of discords, promulgated by Malthus and
Ricaido, is found the idea that, if men would prosper, they must live apart from each
other. The rich lands of England are, as it is said, already occupied, and those who would
find rich lands must fly to America or to Australia, there to produce food and raw
materials with which to supply the market of England ; and thus it is that that country
seeks to establish a system of commercial centralization, that is—as was so justly said,
seventy years since, by Adam Smith—a manifest violation of "the most sacred rights of
mankind." That great man was fully possessed of the fact that, if the fiirmer or planter
would flourish, he must bring the consumer to his side ; and that if the artisan would
IV PREFACE.
flourish, he must seek to locate himaelf in the place where the raw materials were gro-mi,
and aid the farmer by converting them into the forms fitting them for the use of men,
and thus facilitating their transportation to distant lands. He saw well, that when men
came thus together, there arose a general harmony of interests, each profiting his neigh-bor,
and profiting by that neighbor's success, whereas the tendency of commercial cen-tralization
was toward poverty and discord, abroad and at home. The object of pro-tection
among ourselves is that of aiding the farmers in the effort to bring consumers
to their sides, and thus to carry into effect the system advocated by the great author of
The Wealth of Nations, while aiding in the annihilation of a system that has ruined
Ii-eland, India, Portugal, Turkey, and all other countries subject to it; and the object of
the following chapters is that of showing why it is that protection is needed; how it
operates in promoting the prosperity of, and harmony among, the various portions of
society ; and how certain it is that the true, the profitable, and the only means of
ATTAINING PEiiKECT FREEDOM OF TRADE, is to be fouud iu that efficient protection which
shall fully and completely carry out the doctrine of Dr. Smith, in bringing the loom and
the anvil to take their natural places by the side of the plough and the harrow.
INDEX.
Advantage of bringing machinery to the cot-ton,
page 145.
African cotton, attempts to raise, 174.
Agricultural labour in England, 155.
Americans responsible for the wars of Eng-land,
197.
BALTisroRE and Ohio railroad tolls, 24.
and Ohio railroad tolls, diagram of,
35.
Brazil, supply of cotton from, 170.
British commerce ruinous to Ireland and In-dia,
71.
efforts to underwork all other nations,
54.
imports and exports, 56.
legislation upon imports and exports,
53.
slave history disgraceful, 169.
system and protection contrasted, 72.
causes poverty in the producer, 101.
endeavours to maintain monopoly of
machinery, 101.
Bullion and specie should be included in Ta-riff
tables, 7.
Canada and Cuba, objections to their annex-«-
tion, 62.
form of its commerce, 99.
ruined by free trade, 99.
Canadian desire for annexation, 62.
desire for annexation, its ca^se, 99,
exports, 91.
independence would strp imnigration
in the United States, 73.
produce sent to England ^2.
Capital and labour wasted in cransportation,
146.
who suffers by its -laste, 192.
CapitaHst, how affected 'J protection, 141.
small ruined h/ fi'^'2''U^''io'^s occasioned
by the Br'-^sh system, 199,
Cheap labour, 130
China, manufaccure of, 26.
Chinese system of trade, 134.
Clothing, powff to obtain, in exchange for
labour, 1 6, 40.
pow^r to obtain, increases under pro-tection,
16.
price of, is really very high. 111,
Coal. >;onsumption of, 13, 33,
rate of its consumption under the Tariff
of 1828, 85.
price of, reduced with increased pro-duction,
14.
production and consumption of, in-crease
and diminish together, 14.
Coffee, consumption of, 28, 38.
abolition of duties on, 30.
Colonial system presents combination of ac-tion,
95.
system depresses the price of cotton, 99.
manufactures, object of prohibiting,
131.
Colonies of England, their consumption of cot-ton,
110.
Colonization, British system of, 64.
Combination diminished by emigration, 94.
impossible in a staie of poverty, 87.
increases popuUtion, 88.
increases val^e of labour, 86.
needed in ^tiis country, 52.
of laboi^"', strikes, &c., 161.
Commercial policy, review of our, 10.
Commerce decreases under free trade, 73.
definition of, 67.
increases under protection, 72.
internal, 23.
power to maintain external, 39.
power to maintain internal, 39.
tends to produce equality of condition^
153.
Communism among nations produced by po-licy
of England, 154.
Compromise Act, 3.
its operation, 5.
Concentration needed to make labour produc-tive,
89.
Condition of English people, 154.
of'man improved by increase of pro-ductive
power, 78.
Consumer should live near the farmer, 96.
Consumption equals production, 45.
grows with power of production, 23.
of foreign products decreases under
free trade, 42.
not arrested by high prices, 116,
power of, decreases as the producerB
are more and more distant from mar-ket,
87.
Conversion and exchange, doctrine of, 46.
how maintained in England, 63.
increases man's necesiities, and di-minishes
his powers, 183.
tends to destroy labour and capital,
150.
Cotton, comparative consumption of, under pro-tection
and free trade, 110, 114.
comparative prices of crop and cotton
goods in Liverpool, from 1843 i$
1847, 137.
decrease in its cultivation, 103.
decrease in its price, 114.
diagram of imports of foreign, 36.
INDEX.
Cotton, does not increase in supply for want of
a market, 121.
fluctuations in price of, 116.
production of the world, 59.
Prussian imports of, before the Zollve-rein,
107.
return for, consumed in England, 58.
statement of crop and consumption of
American, 106.
speculation in India a failure, 111.
supply of, to Britain falling off, 179.
trade between the United States and
England, 114.
weekly consumption of, in Great Bri-tain,
175.
where the best is raised, 105.
goods, 110.
goods and yarn exported to India from
England,' 103.
and twist, prices from 1844 to 1848,
117.
consumption of, 15, 33.
consumption of, under free trade, and
under protection, 16.
, dearest when cotton is lowest, 117.
, import of, 15.
imported ihto Canada from England,
99.
Credit, public, 31, 39.
Cultivator, his gradual opi^rations with the
land, 123.
Currency, how affected by protecAjon, 185.
Debt created by importations, 26.
foreign, 37.
public, 31, 38.
Dependence on England a cause of non-con-sumption
of iron, 83.
Depopulation, present tendency to, 20.
diagram of, 34.
Disasters of 1836 to 1842, how produced, 188.
present tendency to, 189.
Duties of the United States, 227.
Duty affects amount of importation slightly,
26.
Earth, a machine to fee fashioned to man's
purposes, 123-
the only producer, 124.
I Earthenware manufacture, 26.
; East Indies, British supply of cotton from, 176.
Effects of putting a factory or furnace in ope-ration,
43.
,..., of establishing manufactures in the
South, 50.
Egypt, British supply of cotton from, 170.
Emigration from cotton states, 121.
from Eastern states, 87.
should be stopped, 121.
westward, 20, 87.
England in distress by reason of the dispro-portion
of consumers to producers, 65.
condition of inhabitants of, 109, 154.
fixes the price of products of the far-mer,
141.
real wealth of, 63.
„ result of dependence on, 60.
English colonies continually want annexation,
113.
consumers and producers, 95.
consumption of cotton, 107.
consumption of cotton cloth, 117.
English free t.rade disastrous to other nations,
132. \
market for our cotton does not groTf
with its production, 180.
school, its doctrines, 29.
teaching of its opponents, 30.
Exchanges, how affected by protection, 198.
Exchangers, influence on pauperism, 81.
producers make sacrifices to the, 101.
Expenditure, public, 30, 38.
Exportation of food, 81, 92.
Exports, value of, 36.
Farmer can get most clothing for his produce
when the power of producing cloth ia
greatest, 21.
exhausted by free trade, 73.
how he may get the highest prices in
foreign markets, 98.
profit by emigration only under pro-tection,
98.
sells in the cheapest market, and buys
in the dearest, 81.
suffers by non-production of iron, 80.
Flax, manufacture of, 26, 37.
Flour consumed in English cotton factories,lll.
Food, product, export, and import of, 21.
power to obtain in exchange for la-bour,
40.
why supply of, increases faster than
the demand, 97.
why scarce in England, 57.
Freedom of man increases with wealth and
population, 162.
Free trade among states, 3.
approach to, creates debt, 23.
approach to, is progress downward, 160.
based on cheap labour, 130.
doctrines about rights of man, 128.
impoverishes the masses, 74.
real, beneficial to all, 135.
• results, if introduced in the United
States, 132.
Frtij^lits should be included in valuation of
exports, 8.
French consumption of cotton, 122.
productions, 139.
proftictions imported into the United
States, 27, 37.
Friendship unknown in trade, 205.
Fuel necessary to obtain iron, 78.
Gibraltar, its u^g 112.
God and silver co^ribute little to man's ne-cessities,
lu>_
Government, how affec^d ^y protection, 221.
Grain dearer in coal regions than in Philadel-phia,
98.
price of, would inctease under protec-tion,
98.
production of, 21, 85.
Harmony of interests, 41.
perfect throughout the whole\inion, 117.
between planter, manufactuter, and
ship-owner, 119.
between land-owners and labourer of
the world, 131.
Home markets make highest prices, 16.
Immigration affected slowly Vy change in Ta-riff,
19.
INDEX. VU
Immigration decreases under free trade, 28.
diagram of, 34.
diminishing at present, 20.
effect on consumption, 130.
effect on price of wheat, 96.
should be encouraged, 121.
stops with decreased combination of
action, 94.
results of, had it continued at the same
rate as in 1834, 115.
table of, 17.
would raise price of man abroad, 116.
Importation diminishes under free trade, 28.
means of, 90,
of men and merchandise, 90.
of men reduces shipping prices, 93.
of labour and iron, 81.
under different tariffs, 9.
Independence of England, advantages of, 97.
India, commerce of, 103.
attempts to raise cotton in, 103, 117,
133.
commerce of, 103.
cotton exported from, to England, 104.
; ruined by dependence on England, 61,
103.
Individual credit, how affected by protection,
213.
Intellectual condition of man, how affected by
protection, 209.
Internal commerce, 23.
Ireland, exports of, 91.
importation of cotton into, 109.
ruined by dependence on England, 61,
103.
Iron, abounding in America, 78.
associated with production, 125.
chief constituent of machinery, 78.
consumption of, 12, 32, 79.
cost of, in labour, 12.
domestic production of, 11.
fluctuation in price of, 82.
foundation of civilization, 78.
non-production of, injures the producer
of food, 80.
power of importing, greatest under
protection, 13.
production of, quadrupled by protec-tion,
83.
quantity of, imported since 1821, 10,
11.
Labour and capital wasted in transportation,
149.
best rewarded under protection, 28.
gives value to land, 124.
has smallest return where machinery
of transportation is most needed, 153.
power of, to obtain food, clothing, and
the aid of machinery, 40.
saved in New England, 48.
tends to produce equality of condition,
155.
wasted in the Southern states, 49.
Labourer, how affected by protection, 151.
Labourers' common interest, 130.
Lake tonnage, 24, 36.
Land, a great saving fund, acquiring value
from labour, 122.
effect of sales of, on immigration, 20.
more valuable in the United States
than in Canada^ 129.
Land, public, 220.
quantity of, sold, 20.
value of, depends on cost of transporta-tion,
127.
Land-owners in England, 129.
in India, Ireland, <fcc., 129.
in Parliament, 132.
remedy for their grievances, 130.
Lead, consumption of, 31.
production of, 18.
Linens, importation of, 27.
Louisville and Portland canal, trade on, 35.
Machinery, increased facility of procuring^
causes increased production of food,
21.
must be brought to the cotton, 144.
object of, 78.
of three kinds, 151.
power to obtain in aid of labour, 40.
required to render labour productive,
15L
Man the most valuable commodity, 94.
Manufacture of small articles in the Wesl^ 5^.
Manufacturer's true interest, 136.
Markets, the best for products are those vaado-at
home, 45, 139.
wanted for producers, 122.
Marriage regarded as a luxury in Europe, 128.
Merchants are agents of the producers, 80.
get the benefit of the producer's toil,
81.
Mission, true, of the United States, 227.
Monopoly of machinery cause of the planter's
poverty, 76.
of machinery, effects of abolishing the,
136.
Morality, how affected by protection, 202.
Nation, how affected by protection, 223.
National credit, how affected by protectaon,
218.
Necessity for producers and consumers to live
near each other, 96.
New England, wages in, will rise when they
increase in the South and West, 15S.
New Orleans, trade of, 25.
diagram of produce received at, 36.
New York canal tolls, 24, 35.
diagram of houses built in, 36.
growth of, 25.
Non-production of iron injures the producer of
food, 80.
Ore and fuel in Ohio and the We^t, 78.
Over-population, general prete>t for the evils
of a vicious system ''S.
wrongly complainc-' of in Europe, 129.
Over-production and uxider-consumption, 103.
Pauperism increases in free-trade countriee,
128.
results i'rom tha English colonial sys-tem,
195.
Pennsylvania canal tolls, 24, 35.
Philadelphia, growth of, 25.
Philadelphia, ratio of growth of, to the popo-lation
of the Union, 36.
Planters' advantages, if possessing their owa
machinery, 143.
advantage to, arising from the &•
nexation of Canada, 99.
Vlll INDEX.
Planters benefited by consumption of cotton at
home, 116.
impoverished by the speculations of
exchangers, 76.
need machinery to convert their own
crops, 138.
oppose their own interests, 169.
tobacco and cotton, relative returns for
their products, 119.
true policy to break down English mo-nopoly
of machinery, and bring Eng-lish
machinery to the cotton field,
185.
why they receive small returns for their
capital, 143.
Population, diagram of, 33.
of Philadelphia, 36.
Portugal, causes of its poverty, 112.
Powers of man increase as his necessities
diminish, 192.
Prices highest when a nation buys and sells
at home, 14.
Producer's returns in cotton cloth, 112.
Production of food and iron unequal, 70.
relation of, to commerce, 68.
Productive power, diminution of, brings dis-cord
and internal disorder, 194.
Proportion of producers to consumers in Eng-land,
55.
Protection, how it affects morals, 202.
public credit, 217.
revenue and expenditure, 42, 219.
the capitalist, 141.
consumption of cotton, 108.
currency, 185.
exchanges, 198.
friends of peace, 193.
government, 221.
growth of new states, 88.
intellectual condition, 209.
nation, 223.
political condition, 213.
power to import, 42.
price of cotton, 114.
slave and his master, 161.
value of labour, 66.
woman, 200.
increases immigration and the number
of consumers, 98.
raises the value of man, 130.
raises the value of land, 133.
reduces prices, and increases the power
of consumption, 41.
sav<!s cost of transportation, 141.
why Inquired, 51.
Public credit, h\, 38.
debt, 31, '6%,
expenditure, ^0, 38.
Railroads do not lessen tt»e number of horses,
127.
increase production, 1?7.
Return freights, 93.
Returns for products, 43.
Revenue from customs, diagram, 3&,
from imports, 28.
decreases under free trade, 28.
how affected by different tariffs, 29.
....,,... how affected by protection, 219.
Road from the Mississippi to the Pacific, 90.
to be productive, must go through rich
countries, 89.
Rothschild, his system of accumulating wealth,
75.
Russia wastes food for want of a market, 131.
Russian exports, 91.
system of commerce, 91.
Sating-funds found in mills furnaces, and
coal mines, 46.
Settlers' life and experience, 126.
Silver and gold contribute little to man's ne-cessities,
191.
Ship-owner's true interest, 136.
Shipping affected slowly by changes in tariff,
19.
built to replace vessels sent to Califor-nia,
19.
built, tables of, 19, 34.
increases with protection, 90.
Slavery agitation, how best ended, 165.
would be abolished by making a mar-ket
on the land in the South, 164.
Slave-history of England disgraceful to that
nation, 169.
Slaves have been well kept in the United
SUtes, 169.
Northern men cannot afford to raise,
163.
Smuggling as regarded by British authorities,
112.
Soils, poorest, first cultivated, 29.
South Carolina, her inability to produce cotton
in competition with her neighbours,
166.
Specie and bullion should be included in Ta*
riff tables, 7.
imported and exported, 1829 to 1849,
9.
Steamboat tonnage, 24, 34.
Sugar, production, importation, and consump-tion
of, 23, 35, 120.
returns for, 120.
Swords and muskets hinder returns to labour,
193.
Tariffs, outline history of, 3.
merits of, require time for develop
ment, 6.
principal features of that of 1816, 6.
1824, 5.
1828, 5.
1832, 5.
1833,5.
1842, 5.
1846, 5.
of 1846, effects of maintaining it, 67.
1828, effects that would have resulteiJ
from its continuance, 115.
Taxation of the sugar planter, 76.
increased by pauperism, 76.
Tea, abolition of duty on, 30.
consumption of, 28, 37.
Tendency to produce only the finest cotton
fabrics in England, 179.
Tolls on internal commerce, 24, 35.
Tonnage, increase and diminution of, 19.
lake, 24, 36.
steamboat 24, 36.
Tobacco, consumption of, 119.
Tobacco trade, 118.
Trade of New Orleans, 24.
New York, 25.
Philadelphia, 25.
INDEX. IX
Trading with a poor people tends to reduce
our wages to a level with theirs, 77.
Transportation, costs of, reduce the value of
land, 127.
capital employed in, 143.
United States, British supply of cotton from
the, 171.
exports of cotton from, to England,
106.
exports of grain from, to England,
95.
importation of men into the, 92.
present policy of the, 134.
receipts of cloth and iron from Eng-land,
113.
true mission of the, 227.
wealth of, in land, coal, and metals,
128.
Union between producers and consumers most
profitable when made at home, 51.
Value of exports, 25.
of imports, 10.
Variations in prices caused by dependence on
England, 83.
Wages, fall under free trade, 28.
of labourers in England, 93.
of labourers in Ireland, 94.
process of reducing, 75.
War, causes of recent, 193.
on the labour and capital of the world
prepared in England, 95.
on what the power to make it depends,
194.
Wars of England, Americans responsible for
the, 197.
Western steamboat tonnage, 36.
Woman, how protection affects, 200.
AVool trade, 102.
Woollens, consumption of, 33.
importations of, 16, 37.
ZoLLTEREijf, cotton trade flourishing under its
auspices, 107.
imports into Prussia before and after
its formation, 107.
THE
HARMONY OF INTERESTS:
AGRICULTUKAL, MANUFACTUKING, AND COMMERCIAL.
Why is protection needed? "Why cannot trade with foreign nations be
carried on without the intervention of custom-house officers ? Why is it that
that intervention should be needed to enable the loom and the anvil to take
their natural places by the side of the plough and the harrow ? Such are
the questions which have long occupied my mind, and to the consideration
of which I now invite my readers.
Of the advantage of perfect freedom of trade, theoretically considered,
there could be no doubt. The benefit derived from such freedom in the
intercourse of the several States, was obvious to all ; and it would certainly
seem that the same system so extended as to include the commerce with the
various states and kingdoms of the world could not fail to be attended with
similar results. Nevertheless, every attempt at so doing had failed. The
low duties on most articles of merchandise in the period between 1816 and
1827, had produced a state of things which induced the establishment of
the first really protective tarifl^, that of 1828. The approach to almost per-fect
freedom of trade in 1840, produced a political revolution, and a similar
but more moderate measure, led to the revolution of last year. These were
curious facts, and such as were deserving of careful examination.
It may be assumed as an universal truth, that every step made in the right
direction will be attended with results so beneficial as to pave the way for
further steps in the same direction, and that every one made in the wrong
direction will be attended with disadvantageous results tending to produce a
necessity for a retrograde movement. The compromise bill, in its final stages,
was a near approach to perfect freedom of trade, the highest duty being only 20
per cent. Believing it to be a step in the right direction, one of the enthusiastic
advocates of perfect freedom of trade proposed, soon after its passage, that,
commencing with 1842, there should be a further reduction of one per cent,
per annum for twenty years, at the end of which time all necessity for custom-houses
would have disappeared. With the gradual operation of the earlie.
«tages of that bill there V4'as, however, produced a state of depression so
extraordinary as to lead to a political change before reaching its final stages
8
THE HARMONY OF INTERESTS.
and the duties had scarcely touched the point of 20 per cent, before they
were raised to 80, 50, 60, or more, by the passage of the tariff of 1842.
With the election of 1844, the friends of free trade were restored to power,
and two years afterwards was passed the tariff of 1846—the free-trade
measure—in which the revenue duty on articles to be protected was fixed
at thirty per cent. Here was a retrograde movement. Instead of passing
from twenty downwards, we went up to thirty, and thus was furnished an
admission that so near an approach to free trade with foreign nations as was
to be found in twenty per cent, duties had not answered in practice. Since
then, it has been admitted, even by the most decided free-trade advocates,
that on certain commodities even thirty per cent, was too low, and within
six months from the date of the passage of the act of 1846, its author pro-posed
to increase a variety of articles to thirty-five and forty per cent.*
Here was another retrograde movement. It is now admitted that there are
other articles the duties on which require to be raised, and daily experience
goes to prove that such must be the case, or we must abandon some of the
most important branches of industry. The tendency is, therefore, altogether
backward. Thirty per cent, duty is now regarded as almost perfect freedom
of trade, and instead of proposing a further annual reduction, each year pro-duces
a stronger disposition for a considerable increase. In all this, it is
impossible to avoid seeing that there is great error somewhere, and almost
equally impossible to avoid feeling a desire to understand why it is that the
approaches towards freedom of trade with foreign nations have so frequently
failed, and why it is that every strictly revenue tariff is higher than that
which preceded it.
With a view to satisfy myself in regard thereto, I have recently made the
examination, before referred to, of our commercial policy during the last
twenty-eight years, commencing with 1821, being the earliest in relation to
which detailed statements have been published. Before commencing to lay
before you the results obtained, it may be well to say a few words as to the
merits claimed by the two parties for their respective systems.
The one party insists that protection is " a war upon labour and capital,"
and that by compelling the application of both to pursuits that would other-wise
be unproductive, the amount of necessaries, comforts, and conveniences
of life obtainable by the labourer is diminished. The other insists that by
protecting the labourer from competition with the ill-fed and Avorse-clothed
workmen of Europe, the reward of labour will be increased. Each has thus
his theory, and each is accustomed to furnish facts to prove its truth, and
both can do so while limiting themselves to short periods of time, taking at
some times years of small crops, and at others those of large ones, and thus
it is that the inquirer after truth is embarrassed.t No one has yet, to my
knowledge, ever undertaken to examine all the facts during any long period
of time, with a view to show what have been, under the various systems,
the powers of the labourer to command the necessaries and comforts of life.
One or other of the systems is true, and that is true under which labour is
most largely rewarded : that under which the labourer is enabled to consume
most largely of food, fuel, clothing, and all other of those good things for the
attainment of which men are willing to labour. If, then, we can ascertain
the power of consumption at various periods, and the result be to show that
it has invariably increased under one course of action, and as invariably
diminished under another, it will be equivalent to a demonstration of the
• Treasury Report, Feb. 1, 1847.
•j- A person employed in the preparation of government statistics inquired, on being
asked to prepare some tables, what was to be the policy to be proved. •' Why," said the
other, "could you prove both sides'?" "Equally well," said he.
THE HARMONY OF INTERESTS.
truth of the one and the falsehood of the other. To accomplish this, has
been the object of the inquiry in which I have recently been engaged.
It is necessary now to show what have been the distinguishing features
of the several systems that have been in operation during the period to be
examined. They are as follows:
—
First. The tariff of 1816 was a planters' and farmers' measure. Cotton
and coarse cotton cloths were carefully protected. Iron itself was vvell pro-tected,
but almost all manufactures of iron, the commodities for the pro-duction
of which pig or bar iron could be used, were admitted at 20 per
cent. Wool paid 15 per cent. Blankets and woollen and stuff goods paid 15
per cent., and finer goods 25 per cent,, until 1819, after which they paid
but 20 per cent. Spirits paid a heavy specific duty, for the benefit of the
farmers ; but paper, hats, caps, manufactures of leather, types, and manu-factured
articles generallj'', paid only from 20 to 30 percent. Coal paid 5 cents
per bushel, but the commodities in the manufacture of which coal was to be
used paid ad valorem duties. Protection Avas thus given to the coarse
commodities that least required it, and refused to those for the production
of which the coarser ones were to be used. As a matter of course, its pro-tective
features were totally inoperative.
Second. That of 1824, under which iron was, as before, well protected,
but manufactures of iron, and of metals generally, were admitted at 25 per
cent. Wool was raised to 20 per cent., to increase, by successive stages,
until it reached 30 per cent. Coarse woollens were fixed permanently at
25 per cent. Finer ones were to rise gradually until they reached SSj per
cent. Carpets paid from 20 to 50 cents per square yard. Hams paid 3,
and butter 5 cents per pound. Potatoes 10, oats 10, and wheat 25 cents
per bushel; while scythes, spades, shovels, and other things requisite for
the raising of wheat and potatoes, paid 30 per cent. Spirits were carefully
protected. Bolting cloths paid 15 percent. Sail-duck, Osnaburgs, &c., 15 per
cent. Cotton cloths paid 25 per cent., with a minimum of 30 cents per
yard. The general features of this law did not vary materially from those
of that of 1816, although protection was slightly increased.
Third. The first tariff thoroughly protective, and so intended to be, was
that of 1828. It continued until 1832, when was passed the first of two
laws by which the whole policy of the country was changed. This series
constitutes stage the
Fourth, By the act of July 14, 1832, railroad iron was admitted free of
duty. Axes, spades, &c,, as before, 30 per cent. Bar and pig iron were
carefully protected, but a large portion of the commodities for Avhich they
were needed were thus admitted without duty, or at the same rate as under
our present free-trade tariff. Tea and coffee were free. Silks paid 10 per
cent. Wool was protected, but worsted stuff goods were admitted at 10 per
cent. Cotton goods paid 25 percent., with minimums of 30 cents for plain,
and 35 for prints. This continued in force until the following March, when
was passed the Compromise Act, under which linens, stuff goods, silks, and
other articles were admitted free of duty, and one-tenth of the excess over
20 per cent, reduced from all other commodities, to take effect December,
1833, with a further similar reduction every two years until 1841, when
one-half of the remaining surplus was to be reduced, and the other half in
1842, when no duty would exceed 20 per cent.
Fifth, The protective tariff of 1842, which was followed by
Sixth. The free trade tariff of 1846, now in existence.
We have thus had six different systems, but the first and second differ
from each other so little that it is unnecessary to separate the year?; falling
under them, whereas the early years of the Compromise differ so essentially
6 THE HARMONY OF INTERESTS.
from the two latter that it is expedient to separate them. I shall therefore
group the results as follows :
—
First. The tariffs of 1816 and 1824, ending with 1829.
Second. That of 1828, commencing with October, 1829, and ending
with the period at which the Compromise began to become operative, Oc-tober,
1834.
Third. The Compromise, commencing with 1835 and ending with 1841.
Fourth. The years 1842 and 1843, the period immediately preceding
and following the passage of the act of 1842, being that of the strictly reve-nue
tariff'of 20 per cent.
Fifth. The tariff of 1842, commencing June, 1843, and ending June,
1847.
Sixth. That of 1846, commencing June, 1847, and coming down to the
present time.
It will be observed that I have placed the year 1829 in the first period,
and 1834 in the second. It is not the passage of an act that produces
change, but its practical operation, and the first year of the existence of a
new system is but the sequel of that which is passing out. When pro-tection
is given to the makers of cloth and iron, mills and furnaces are not
built in a day, nor are they abandoned as soon as protection is withdrawn.
Had it been possible, I would have pursued the same precise system with
every period, but it was not. The act of 1842 came into operation on the
first of September of that year, and in the following one the time for making
up the Treasury accounts was changed to June 30, and therefore only the
first ten months that followed its going into effect could be included under
the previous period. That of 1846 did not come into effect until December 1,
and therefore but the first seven months that followed could be included in
the system of 1842. The law of 1842 was in existence four years and a
quarter, but I could give it only four years, Avhich works materially to its
disadvantage, and to the advantage of that of 1846.
In some cases even more than a year would be required to make an exact
comparison of the working of the different systems. The immigration of
one year is materially influenced, perhaps I might say determined, by the
state of the labour-market of the previous year, and the change in that is at
least a year subsequent to the passage of a law. Thus, if the tariff'of 1842
tended to raise the compensation of the labourer, its effects would not be-come
obvious until 1843, and it Avould not be until 1844 or even 1845, that
an increase of immigration would take place. The price of labour Avas
high in 1847-8, and we have a large amount of immigration in 1849. It
is now falling, and the immigration of next year will probably be reduced.
So likewise is it with the supply of grain. A diminution in the demand
for labour in mines and furnaces in 1842 tended to increase emigration to
the West. For the first year, 1843, those emigrants were consumers only.
In the second, 1844, they had grain to sell, and prices fell. In the present
year, the demand for labour in mines and furnaces, and in the erection of
mills and furnaces, is diminished, and emigration to the West is increased,
yet the efft'ct of this on the supply and price of food may not, and probably
will not become obvious until 1852.
Your predecessor appears entirely to have overlooked this necessity for
allowing time to permit new systems to develope themselves, and to afl^ect
the movements of the people. In his last report to Congress is given a
comparative view of the receipts from customs in the last six months of the
tariff of 1842, and the first six of that of 1846, by which it is shown that the
one was twice as productive as the other, and yet very slight reflection
would have sufficed to satisfy him that scarcely any portion of the difl^erence
THE HARMONY OF INTERESTS.
had resulted from the change of commercial policy indicated by the adoption
of his tariff. The amount that could be imported and paid for was dependent
on the state of affairs that had existed in the country during the previous year,
and the passage of the law had scarcely even the slightest influence upon
it. In the same way, the receipts from customs from September, 1842, to
November, 1846, are compared with those of 1847 and 1848, when it is
well known that in 1842, under the Compromise, the imports had fallen so
low that the government was compelled to send to Europe to endeavour to
effect a loan for its support even in a time of profound peace. If a cause
has right on its side, such erroneous views cannot be required to be pre-sented.
In the tables that I shall now offer for consideration, I have pur-sued,
as nearly as possible, a uniform course, commencing each period at
the time at which the system might fairly be deemed to become operative,
to wit : at the close of the fiscal year following the one in which the law was
enacted. If error, then, exist at the commencement of the period, it will
find its compensation at the close, and thus justice will be done to all.
There still remain two other points in regard to these tables, to which I
have to ask your attention.
First. It is usual in almost all tables of import and export to exclude
specie and bullion. This is wrong, and tends to produce error, and to pre-vent
a proper understanding of the working of the system that may be under
consideration. Gold and silver are commodities produced abroad, of which
we consume large quantities, occasionally exporting the surplus ; and there
is no reason whatever why they should not be treated precisely as are
coffee, wines, brandy, and other foreign commodities. When they are im-ported
they come in exchange for our products, and the sum of merchandise
and specie imported is the value of our exports. When exported, they go
in lieu of our products, and should be treated as foreign merchandise re-exported.
By deducting them from the value of the merchandise imported
we obtain the value of our domestic exports.
Second. It is usual to affix to the commodities exported arbitrary prices,
and thus to obtain their money value. These prices are fixed at the ports
of shipment, and represent only what we ask for the commodities we have
io sell, not what we get for them. They represent, too, the prices minus
the earnings of the machinery employed in performing the work of trans-portation,
which must then be guessed at. The consequence of all this is,
that the tables pubhshed by the Treasury are totally worthless as guides to
a proper understanding of the general course of trade. What is needed to
obtain such an understanding is that the nation make out its accounts as it
would do if it were a merchant, putting down not the price asked but the
price received, and then balancing its books by ascertaining whether the
year's business has increased or diminished its debts. The amount received
for our exports constitutes their precise value, and to ascertain what is that
amount we should take the value of merchandise imported, deducting there-from
any debt contracted, or adding thereto any debt paid off, during. the
year. Thus, if the imports be $100,000,000, and the debt contracted by
the transfer of stocks has been $10,000,000, the amount paid for by our ex-ports
is only $90,000,000. On the contrary, if we have paid off that amount of
debt, it should be added, and we should thus obtain $110,000,000 as the
true value of the produce and merchandise exported. The freights are thus
included.
To carry this fully into practice in the following tables would be im-practicable,
but it may be done in part. It is generally understood that the
amount of American stocks, public and private, held in Europe in 1841
exceeded $200,000,000, and there is reason to believe that they exceeded
8 THE HARMONY OF INTERESTS.
by $170,000,000 the amount held in November, 1834, when the great stock
speculation commenced.* By deducting this sum from the merchandise
imported between the close of 1834 and the year 1841, we shall obtain the
value of produce and merchandise exported. A part of this debt was ab
sorbed in the years 1845, 1846, and 1847, while on the other hand new
debts were created last year, and are now being created by the transmission
of evidences of debt. To the imports of the three first named should be
added the debt absorbed, and from those of the last two years should be
deducted the debt created, and we should then obtain the actual amount
paid for by produce and domestic merchandise exported, and by the ship-ping
employed in the work of transportation.
There are other and earlier years in which corrections might be required,
but they are of trifling amount by comparison with those to which I have
referred. In those years small loans were made, but it is probable that
nearly as much was paid off, except perhaps in 1825, in which a con-siderable
amount of European debt was created. The amount, however,
is so uncertain that I have not thought it worth while to make any cor-rection
therefor; although to do so might, and perhaps would, produce a
sensible diminution in the value received for our produce exported prior to
1829, which would thereby be placed in a somewhat worse position than
that in which I have represented it.
With these remarks, I Avill now proceed to lay before you the results of
my inquiries. In doing so, I will give every fact that appears to me likely
to throw light on this important question, concealing nothing. If, then,
those who have arrived at conclusions different from mine, and are in pos-session
of other facts, will put them together as I now do, we may by de-grees
arrive at the truth. It is the great question for the nation, and it is
time that it should be examined as a purely scientific, and not as a party or
sectional one.
CHAPTER SECOND.
The average population of the Union in the several periods referred to,
is thus estimated in the last Treasury Report :t
.First. For the years from that ending Dec. 31, 1821, to that of
Dec. 31, 1829 ....
Second. From Sept. 1829, to Sept. 1834^ .
Third. From Sept. 1834, to Sept. 1841 .
Fourth. From Sept. 1841, to June, 1843 .
Fifth. From June, 1843, to June, 1847$ .
Sixth. From June, 1847, to June, 1848 .
Seventh. From June, 1848, to June, 1849
11,247,000
13,698,000
16,226,000
18,296,000
19,771,000
21,000,000
21,700,000
• Report of Select Committee on Banks of Issue : Evidence of Mr. I. Horsley Palmer,
page 106.
f Page 68.
i As these years are frequently referred to separately, I give their population, on the
same authority:
—
1829-'30 12,856,165 1843-'44 19.034,332
1830-'31 13,377,415 1844-'45 19,525,749
183]-'32 13,698,665 1845-'46 20,017,165
1832-'33 14,119,915 1846-47 20,508,582
1833-'34 14,541,165 1847-'48 21,000,000
THE HARMONY OF INTERESTS.
The amount of foreig-n merchandise, specie included/'' retained in these
several periods, has been as follows :
—
1821 to 1829
1830
1831
1833
1833
1834
1835 to 1841
Deduct debt incurred
854,000,000
170,000,000
Total.
$508,000,000
55,500,000
81,000,000
75,500,000
88,000,000
103,000,000
Annual ATorage.
56,400,000
Pr. head.
$5-00
4-32
610
5-51
6-20
7-08
684,000,000 97,700,000 6-02
1842 to 1843(21 months,endingJune30,) 145,000,000
1843-'44 96,000,000
1844-'45 101,000,000
1845-'46 . . . 110,000,000
Add debt and back in-terest
paid . 5,000,000 115,000,000
82,000,000
lS46-'47
Do.
138,000,000
5,000,000 143,000,000
1847-'48 . . . 131,600,000
Deduct debt incurred 8,000,000 121,600,000
4-48
503
516
5-75
5-88
1848-'49 . 134,700,000
Do. 22,000,000 112,700,000 5-19
The facts derivable from an examination of the above accounts are as
follows :
—
First. That the amount received from foreign nations in exchange for our
surplus products largely increased during the existence of the tariff of 1828.
Second. That the amount so received diminished greatly after the Com-promise
Bill began to become operative.
Third. That the amount so received from foreign nations was still fur-ther
and largely diminished under the strictly revenue clauses of that biU,
and that the tendency was downward when the system was changed.
Fourth. That the amount so received increased rapidly under the tariff
of 1842, attaining nearly the same point that had been reached under the
tariff of 1838, and that in both cases the tendency was still upwards when
the system was changed.
Fifth. That the amount so received diminished in the year 1848.
Seventh. That the amount of debt incurred in the last two years must
tend to produce a further diminution in future ones.
In establishing the scale of value of our exports, including the earnings
of shipping, the following is the order to be pursued :
—
First, and lowest. The strictly revenue clauses of the Compromise Act.
•The movement of specie in those periods was as follows >
1821 to 1829, Excess export . $9,000,000
1830 to 1834, Excess import . 25,000,000
1835 to 1841, « " , 27,000,000
1842 and 1843, « " . 20,000,000
1844 to 1847, « a
. 18,000,000
1848, Excess export . . 9,000,000
1849. " import . . 2,000,000
Deducted from the merchandise
imported.
Added thereto.
do.
do.
do.
Deducted.
Added.
10 THE HARMONY OF INTERESTS.
Second. The partially protective tariffs of 1816 and 1824.
Third. The Compromise Act.
Fourth. The tariff of 1828.
Fifth, and highest. The tariff of 1842.
Thus far, the tariff of 1846 stands below that of 1842, and the tendency-is
downward, but to what place in the scale it will descend can be deter-mined
only after it shall have been some years in operation.
CHAPTER THIRD.
REVIEW OF THE COMMERCIAL POLICY OF THE LAST THIRTY YEARS.
I NOW proceed to show in detail the consumption of various commo-dities,
of foreign and domestic production. In doing so, it will be necessary
in some cases, to arrive at a correct understanding, to make allowances
similar to those above given : my object being that of showing what was
the power to consume that was derived from the power to produce commodi-ties
to be given in exchange for those which were consumed.* It would be
proper to do this in all, but the effect would be to render the whole somewhat
complicated, besides involving much labour. In giving the imports of the
period from 1834 to 1841, they will always be accompanied with the mark
of minus one-fifth, so as to show the amount consumed and p)<^id for. In
giving those of 1845-6 and 1846-7, they will, in some important cases, be
accompanied with that of plus one-twentieth, so as to show the quantity of
merchandise imported in a previous period, and then paid for by the cancel-ling
of certificates of debt. Those of 1848 will have the mark of minus
one-seventh, to show the amount paid for by the re-export of nine millions
of foreign merchandise in the form of specie, and the export of eight millions
of certificates of debt. Of the imports of tho year ending in June last,
amounting to $134,700,000, about $22,000,000, or one-sixth, were obtained
in exchange for such certificates, and will be so marked.
The total value of pig, bar and manufactured iron, of every description,
'imported into the Union, since 1821, has been as follows:
—
Years ending, Per head,
Sept. 30, 1821 to 1829, average .... $5,400,000 48 cents.
" 1830 5,900,000 46 «
« 1831 7,200,000 54 «
"1832 8,800,000 64 «
" 1833 7,700,000 L5 «
"1834 8,500,000 59 "
" 1835 to 1841 . $10,000,000 — 1, . 8,000,000 4fl "
« 1842 to June 30, 1843, average . . 5,500,000 30 «
June 30, 1 844 5,700,000 30 "
"1845 9,000,000 46 «
« 1846 . . . $5,830,000 -f jij . 6,120,000 31 «
•' " 1847 ... +^s- 9,000,000 44 «
« 1848 . . 12,500,000—i . 10,800,000 50 ««
« 1849 . . . 13,833,094—^ . 11,500,000 53
• See page 9.
THE HARMONY OF INTERESTS. 11
We see here, that the value imported axid paid foi-, largely increased from
from 1830 to 1834, under the protective tariff of 1828 ; that it diminished
considerably between 1834 and 1841, and that it reached the lowest point in
1841-2 and 1842-3. Thenceforward it rose, and the year 1846-7 shows an
advance of about fifty per cent, from the lowest point. It is therefore ob-vious,
that the power to pay for foreign iron increased under protection, and
diminished with its withdrawal. I give now the quantify of various kinds
of IRON imported
Pig, Okl, nolled, Hoop, Steel, Ilam'd, Total, Prh.
tons. tons. tons. tons. tons. tons. tons. lbs.
1821 to 1829, average, 1550 — 5400 1500 1200 2G,000 35,050 7
1830, 1129 — G449 1038 1223 30,093 40,532 7
1831, 0448 — 17,245 2532 1710 23,308 51,243 8|
1832, 10.151 — 20,387* 28-53 2146 38,150 73,087 12
1833, ....;.. 9330 998 28,028* 3350 2131 30,129 79,901 13
1834, 11,113 1617 28,890* 2214 2431 31,784 78,055 12
1835 to 1841, average — ^ 8800 640 30,000* 2G00 2150 24,000 74,190 10
1 842-3, average, . . . 14,500 500 46,000f 2900 2400 14,750 81,050 10
1844, 20,050 5770 40,000 3600 2800 17,.500 101,720 12
1845, 27,000 5800 51,000 5800 2800 18,170 110,576 13
1846, 24,000 2350 24,000 5040 5200 21,800 82,390 9
1847, 27,800 1850 40,000 0000 5400 15,300 90^350 10|
1848, —\ 44,000 5700 70,000 8300 5850 17,000 150,850 16
1849, — ^ 88,000 8000 145,C00 10,000 9,000 200,000 27
The qnantitj paid /o7' hy our exports was thus almost doubled before the
termination of the second period, in 1834; while it diminished under the
compromise, and still further under the revenue system. As the tariff of
1842 came into activity, we find a rapid increase in the power to purchase,
until the import became checked by the vast increase in the price abroad, and
in the manufacture at home.
DOMESTIC PRODUCTION OF IRON.
In ISIO, the whole number of furnaces in the Union was 153, yielding 54,000 tons of
metal, equal to 16 pounds per head of the jiopulation.
1821, the manufacture was in a state of ruin.
1828, the product had reached 130,000 tons, having little more than doubled in
eighteen years.
1829, it was 142,000. Increase in one year, nearly ten per cent.
1830, " 165,000. Increase in two years, more than twenty-five per cent.
1831, " 191,000. Increase in three years, about fiity per cent.
1832, " 200,000, giving an increase in three years of above sixty per cent.
1840, the quantity given by the censu« was 286,000, but a committee of the Home
League, in New York, made it 347,700 tons. Taking the medium of the
two, it would give about 315,000 tons, being an increase in eight years of fifty
per cent.
1842, a large portion of the furnaces were closed, and the product had fallen to
probably little more than 200,000, but certainly less than 230,000 tons.
1846, it was estimated, by the Secretary of the Treasury, at 705,000 tons, having
trebled in four years.
1847, it was supposed to have reached the amount of not less than 800,000 tons.
1848, it became stationary.
1849, many furnaces being already closed, the production of the present year cannot
be estimated above 650,000 tons; but, from the accumulation of stock and the
difficulty of selling it, it is obvious that the diminution next year will b»
greater.
• Railroad iron free of duty. \ Duty re-imposed.
12 THE HARMONY OF INTERESTS.
Domestic product. Per heaxl. Import. Total consumption.
Per head.
1821 to 1829, average, . 90,000 18 7 25
1830, 165,000 29 7 36
1831, 191,000 33 8| 41f
1832, 210,000 35 12 47
1833, 210,000* 33 13 46
1834, 210,000* 33 12 45
1835 to 1841, average, .250,000 35 11 46
1842-1843, average, 230,000 28 10 38
1844, 380,000 45 12 57
1845', .' 500,000 58 13 71
1846,' .
• 765,000 86 9 95
1847, 800,000 88 lOf 98f
1848, 800,000 86 19 105
Deduct from this the quantity imported in exchange for certi-ficates
of debt, and therefore remaining to be paid for at a
future time, . . . . ... . . 3
There will remain ....... 102
If now we further deduct from this the accumulation of stock on
hand, we shall find the consumption not exceeding that of the
preceding year, say ... ..... 98|
1849, 650,000 67 32 99
The value imported in this period is $13,800,000, and the amount
of debt incurred is $22,000,000, chiefly for this iron. The
quantity on hand is variously estimated between 250 and 300
thousand tons. Taking the former, the amount per head would
be 26
Which being deducted, ^would leave the consumption at . — 73
From 1821 to 1829, the cost of iron, in labour, was high., as is shown in
the fact that the consumption was but twenty-five pounds per head. In
1832, it had risen to 47 pounds ; but, railroad iron being then freed from
duty, the consumptioa of the two following years fell off, indicating an increased
difficulty of obtaining it. Thence to 1841, the average power of consumption
appears to have remained almost perfectly stationary ; but, in the two
following years, we find it receding rapidly. As the tariff of 1842 comes
into operation, there is a rapid increase in the power of consumption, indi-catino-
a diminution in the amount of labour required for its purchase ; and
the year 1846-7 shows it attaining a point far higher than ever before known,
being almost 100 pounds per head. With the year 1847-8, the domestic
production declined in its ratio to population, and the import increased ; but
the total quantity in market was very little greater than in the previous year,
yet the close of that year showed an accumulation of stock on hand. In
1849 we find a rapid increase of import and diminution of production, yel
the total quantity brought to market is less per head than in 1846-7, and of
that there is already so vast an accumulation that the seaports are filled with
it, and the stock on hand at the furnaces is such, that many will be forced to
stop work, as numbers have already done.f It is obvious that the difficulty
• Railroad iron, free of duty.
+ Pennsylvania is the great iron-producing State of the Union, and we may form
some idea of the accumulation of stock, or the diminution of production, there, from .he
following facts. The pig iron sent to market by the one route of the Chesapeake and
Delaware Canal, from the opening of navigation to the first of September, 1848,
amounted to 24.00Utons; whereas, in the same period of 1S49, it fell to little over 12,000
.tons, and the bar iron from 5000 to 1250 tons.
THE HARMONY OF INTERESTS. m
of obtaining iron is increasing, and that the consumption is rapidly diminish-ing,
with a tendency to still further diminution.
The important facts to be derived from this examination are—first, the
small increase of importation that results, even temporarily, from the abo-lition
of the duty. During the period from 1830 to 1832, railroad iron paid
duty, and yet the importation trebled in that time, and the last year was far
the greatest of the three. For nine years after, it was totally free from duty;
and, although much of that which was imported for railroads is said to have
been used for other purposes, the increase averages but seventy per cent. By
the tariff of 1841,* railroad iron was rendered subject to duty, and the import
of rolled iron in 1842 and 1843 was 46,000 tons, being two-thii-ds more
than was imported free of duty in 1834.
Second. That, under the protective tariff of 1828, the total consumption,
per head, increased, in four years, fifty per cent. That, under the system
which prevailed from 1832 to 1842-3, consumption was almost stationary,
and was probably less per head than it had been at the commencement of
the period. That, under the tarifi" of 1842, the average consumption in-creased
in the first year from thirty-nine to fifty-seven pounds, and that, in
1846 and 1847, it attained the height of almost one hundred pounds per
head, exceeding by 150 per cent, the consumption of the free trade period of
1842-3.
If, now, we look at the single article of railroad iron, we find similar
results. Up to 1842, not a single ton of it had ever been made in this
country, and yet the average consumption of rolled iron, of every description,
in the ten years from 1832 to 1842, free of duty as it was, vas but about
36,000 tons. Commenced only in 1843, the manufacture of railroad bars
in 1845 had already reached about 50,000 tons, and, in 1847, it had
attained nearly 100,000 tons, and yet the average import of rolled iron for
the four years was nearly as great as before. The domestic production has
now fallen almost to nothing, and yet the import has been only 174,000, of
which, it is said, there is now on hand a supply adequate to meet the demand,
such as it is at present, for two years to come.
The questions to be settled are—Which is the system under which iron is
most cheaply furnished ? Wliich is the one under which it is most readily
obtained by tliose who desire to use it ? If free-ti-ade be the one, then the
power to import, under it, ought to grow more rapidly than the power to
produce diminishes; but we see here that the poAver to import diminishes
with the power to produce, and grows with the growth of the power of pro-duction,
being greatest under protection.
COAL.
Anthracite. Foreign. Total. Consumption pet
'rons. Tons. Tons. 1000 of populat'li.
1821 to 1829, average, 37,000 80,000 67,000 tons.
1830, 142,000 54,000 196,000 15
1831, 216,000 34,000 250,000 19
1832, 318,000 06,000 384,000 28
1833 395,000 85,000 480,000 34
1834, 451,000 67,000 518,000 35
1835 to 1836, . . . 671,000 78,000 749,000 50
1837 881,000 140,000 1,021.000 64
1838 to 1841, . . . 850,000 145,000 995,000 58
1842, 1,108,000 141,000 1,249,000 69
* Tliis was a provisional tariff, liaving for its sole object the increase of revenue, and
was liniited to alterations in a few articles.
14 THE HARMONY OF INTERESTS.
Anthracite. Foreign. Total. Consumption per
Tons. Tons. Tons. 1000 of populat'n.
1843, 1,312,000 55,000 1,367,000 74
1844, 1,631,000 87,000 1,718,000 90
1845, 2,023,000 86,000 2,109,000 108
1846, 2,343,000 156,000 2,499,000 125
1847, 2,982,000 148,000 3,130,000 152
1848, 3,089,000 196,000 3,285,000 156
1849, 3,200,000 200,000 3,400,000 156
In this case, it has been necessary to separate the years 1842 and 1843,
because of the whole of the latter coming within the action of the tariif of 1842,*
the account of the domestic production being made up to the close, instead
of the middle of the year, as in the case of imports.
The facts that here present themselves are worthy of careful consideration.
When we produced little coal, we imported little, the total consumption
being only six tons per thousand of the population. As the production
grew, the import grew, and thus, in 1846 and 1847, when we produced
eighty times as much as in the period from 1821 to 1829, we imported five
times more.
From 1829 to 1834, and thence to 1837, the increase of consumption was
rapid. Thence to 1841, it diminished ten per cent. In 1842, it was
scarcely higher than it had been five years before. In the five years which
followed, it rose from 69 to 152 tons, showing a rapid diminution in the
quantity of labour required to be given in exchange for it. In 1848, under
the action of the tariff of 1846, the production became almost stationary,
and the diminished power of consumption is shown in the fact that although
the quantity sent to market maintains the same ratio to population, much of
it is sold at a loss to the producer.
With every step in the growth of the home production of coal, the money
price has steadily diminished. That of a ton of anthracite in 1826, in
Philadelphia, was six, eight, and sometimes ten dollars, and yet the whole
import was only 970,000 laushels, or about 30,000 tons. In 1846, the price of
anthracite was about four dollars, and yet the import was 156,000 tons. It
would appear from this, that when a nation is capable of supplying itself,
other nations, desiring to sell, must come to them and sell at the lowest
price, and the consumption is large ; but when it cannot supply itself, it
must go abroad to seek supplies, and pay the highest price, and then con-sumption
is small. Applying this to iron, we find that when we had to seek
abroad for nearly all our supply, it sold at prices twice or thrice as great as
those at which it is now obtained.
In 1846 and 1847, notwithstanding the vast increase in the supply of
coal, so great was the consumption that we had to go abroad to make up the
deficiency, and to pay the high prices which our own demand largely tended
to produce, a state of things which could not have happened had we been
prepared to supply the whole demand.
It remains to be seen whether the converse of this proposition may not be
true, to wit, that when a nation makes a market at home for nearly all its
products, other nations have to come and seek what they require, and pay
the highest price; and that, when it does not make a market at home,
markets must be sought abroad, and then sales must be made at the lowest
prices. If both of these be true, it would follow that the way to sell at
the highest prices and buy at the lowest is to buy and sell at home.
* It came into action on the 30tli of August of that year.
THE HAUMONY OF INTERESTS. 15
Per head.
84 cts.
COTTON.
IMPORT OP COTTON MANUFACTURE.
Tears ending
September 30, 1821 to 1829, average, $9,454,000
1830, 7,862,000
1831, 16,090,000
1832, 10,399,000
1833, 7,660,000
1834, 10,145,000
1835 to 1841 12,000— i... 9,600,000
1842 to June 30, 1843, average 7,184,000
1844, 13,641,000
1845, 13,863,000
1846, 13,600,000
1847, 16,071,000
June
01
1-21
76
54
70
30,
1848, $18,412,000-
1849 15,180,000-
15,582,000
12,650,000
76 av.
59
39
72
71
67i-
78
74
56
The numberof yards of cloth imported in 10 years is thus given. I have
been unable to complete this table, or it should be given in full. I give all
I have met with :
1831, 68,577,000
1835, 53,974,000
1836, 56,931,000
1837, 23,774,000
1838, 20,240,000
1839, 42,418,000
1840, 20,011,000
1842-3, 8,936,000
1844-5, 34,500,000
1845-6, 36,800,000
The differences here appear much more striking than in the table above.
The diminution of consumption under the free-trade system is very regular,
and the increase under protection nearly as much so.
Owing to the variety of cotton goods imported, it is difficult to estimate
the weight of cotton contained in them ; but, in the following table, I have
made a rude estimate, with a view to show the growth of domestic con-sumption.
It must be borne in mind that a large portion of the foreign
commodities are of the finer and more costly descriptions, and that the
weight is therefore small when compared with the value.
Taken by-
Northern
Crop of manufacturers.
1825-6 to 1829-30, average, bales 110,000
1830-31, 182,000
1831-32, 173,000
1832-33, 194,000
1833-34, 196,000
1834-35, 216,000
1835-36, to 1841-42, average, ... 263,000
1842-43, 325,000
1843-44, 347,000
1844-45, 389,000
1845-46 423,000
1846-47, 428,000
1847-48 531,000
1848-49, 518,000
Taken by Per head,
Southern domes- Per head. Total,
manufactur's. tic. foreign, p. head.
4 lbs. lilbs. 51-
5|
1
2
H
0|
n
30,000
40,000
75,000
100,000
1
0|
n
12 U
n
7
n
H
lol
10|
13J
12i
16 THE HARMONY OF INTERESTS.
In estimating the domestic consumption, I have throughout taken the
bale at four hundred pounds, although aware that there has been a gradual
increase of the weight. This change would be important to be considered,
if it were my object to compare 1847 with the distant year 1831; but it is
unimportant when the object in view is the comparison of years which are
near together, as is the fact.
The results in this case correspond almost precisely with those obtained
from the examination of iron and coal. The home consumption of the crop
of 1834-5, per head, was almost fifty per cent, greater than the average of
previous years, while the import remained almost undisturbed. Under the
Coinpromise, consumption appears to have remained almost perfectly sta-tionary,
the increase of domestic production being compensated by diminished
importation. In 1842-3, the consumption per head was scarcely greater
than it had been eight years before, when it should have doubled. With
the operation of the tariff of 1842, we find the consumption of domestic
products 75 per cent, greater, while the import is also almost doubled.
It would appear obvious, that the power to obtain clothing in return for
labour increased in both protective periods, and diminished with the approach
to free trade. With 1848-9, the demand for Northern manufactures dimi-nished;
and, as many mills are now closed that were at work but a fe^
months since,* there is reason to believe that the power to obtain clothing
in return for labour is in a course of gradual diminution.
A portion of the cotton worked up at home has been exported, and was
therefore not consumed at home. To have made allowance for this would
have made the table very complicated, and it did not appear to be necessary,
as the proportions were well preserved, having been about a million or
dollars when the home consumption was 100,000 bales, two millions when
it rose to 200,000, three millions out of 300,000, and five millions out of
500,000 bales.
WOOL.
IMPORT OF WOOLLENS.
Years ending Per head.
September 30, 1821 to 1829, average, . . $8,900,000 79 cents
1830, 5,766,000 45
1831, 12,627,000 95
'« 1832 9,992,000 75
1833, 13,262,000 93
" 1834, 11,879,000 82
'« 1835tol841,av., $13,950,000—} 11,160,000 69
" 1842 to June 30, 1843, . . 6,300,000 34
June 30, 1844, 9,475,000 50
1845, 10,666,000 55
1846, 10,089,000 50
'« 1847, 10,570,000 51
«' 1848, . . $15,230,000—1 13,000,000 62
1849, . . 13,704,000 — -^ 11,400,000 53
• Within the last six months there have been been many failures among those engaged
in the business; and, in these cases, the mills are not only closet!, but likely so to remair..
The import into Cincinnati may be taken as evidence of the course of affairs in tl©
West, and here we have the same result
1846-7, 12,528 bales.
1847-8, 13,476
1848-9, 9,058
We see, thus, that notwithstanding the extreme lowness of price, the consamptiom has
diminished.
THE HARMONY OF INTERESTS. 17
Prioi to tte passage of the tariff of 1824, the woollen manufacture was
In a very depressed condition; and, in 1825, the number of sheep was only
fourteen millions,* producing about thirty-five millions of pounds of wool.
Thenceforward the number increased, and the crop of 1829, 1830 and
1831, was estimated at fifty millions of pounds, the produce of twenty mil-lions
of sheep. At the close of 1834, there had been a further increase,*
but to what extent we arc not informed; but the value of the woollen
manufacture was estimated at G5 millions of dollars against 40 millions in
1831. In 1840, the census returns show but 19,311,000, the number
having diminished while the population h^d largely increased. The depres-sion
of 1841-2 was accompanied by the sacrifice of sheep to a considerable
extent; yet so rapid was the subsecpent change, that the number, in 1845,
was estimated at twenty-five million5,f and in 1848 at twenty-eight millions.
Ohio had, in 1846, only 2,005,000 ; but, in 1848, the number had risen to
3,677,000. The number in ^ew York, in 1845, was 6,443,000, and, sub-sequently
to that date, it had largely increased.
The deliveries on the New York canals, and at Pittsburgh, in 1840, were
one-fifth of the total pi-oduction by the census ; and, since that date, they
are thus stated—
J
1841,
1842,
1843,
1844,
5,094,035 1845,
4,823,881 1846,
5,713,289 1847,
6,798,769 1848,
13,267,609
12,269,537
16,325,987
11,665,540
Even this does not mark the whole increase, as the woollens factories of
the interior of New York and other States absorb much that would otherwise
pass on the canals, destined for distant places.
With these very imperfect data, we may now form some estimate of the
consumption of this most important commodity. In estimating the weight
contained in the cloth imported, I have taken it as being worth one dollar
per pound, and therefore the figures which represent the value per head,
give also the weight per head.
Average of
1821 to 1829,
1830,
1831, .
1832,
1833, .
1834,
1835 to 1841,
1842 and 1843,
1844,
1845, .
1846, .
1847, .
1848, .
1849,
Millions Poimds of
of sheep. wool.
. 15 37,500,000
20
21
22
23
24
22
19
22
24
26
27
50,000,000
52,500,000
55,000,000
57,500,000
60,000,000
55,100,000
48,000,000
55,000,000
60,000,000
65,000,000
67,500,000
70,000,000
Imports.
Pounds.
2,000,000
669,000
5,622,000
4,042,000
950,000
2,341,000
10,000,000
7,500,000
23,800,000
28,800,000
16,500,000
8,460,000
11,380,000
17,860,000
Total, domestic
manufacture.
39,500,000
50,669,000
68,122,000
59,062,000
58,450,000
62,341,000
65,000,000
55,500,000
78,800,000
88,800,000
81,500,000
75,960,000
81,380,000
Per head.
Total,
dom. k ict.
3.50 4-29
3-90
4-40
4-40
4-15
4-30
4-
4-10
4-50
4-10
8-70
3-90
4-36
5-85
5-15
5-08
5-12
4-69
3-34
4-60
5-05
4-60
4-20
4-52
By the tariff of 1846, the duty on many descriptions of foreign wool was
raised, while that on cloths was lowered; which accounts for the great dimi-nution
in the quantity imported.
That this is very incorrect there is no doubt ; but it will enable us to
make some comparison between the increase of imports as compared with
the diminution of home production. From 1830 to 1834, the production
* Pitkin's Statistics, p. 488.
* Merchant's Magazine, Vol. XXI., p. 217.
f Patent Office Report, 1847, p. 213.
18 THE HARMONY OF INTERESTS.
grew, and the import was large. From 1835 to 1841, the former largely
diminished in its ratio to population; and the foreign doths jxiid for in that
period fell to sixty-nine cents per head. In the revenue period, from June,
1841, to June, 184.S, production was very small, and the import fell to about
thirty-four cents per head. In the four succeeding years, both grew rapidly.
Under the tariff of 1846, there is a slight increase of import; but the home
manufacture has diminished. The power to obtain' cloth irr exchange for
labour has, therefore, invariably grown in the protective periods, and dimi-nished
with every approach to free trade.
PRODTJCITON OE LEAD.
The arrivals at New Orleans have been as follows :—
Piss. Pigs. Pigs.
1828-'29,-; average, 164,000 1834, . . 202,000 1845, . . 732,000
1830, 254,000 1835 to 1841, .
' 298,000 1846, 785,000
1831, . . 151,000 1842, . . 473,000 1847, . . 659,000
1882, 122,000 1843, 571,000 1848, 606,000
1833, . . 180,000 1844, . . 639,000 1849, , . 508,000
We see here that the average of the seven years, iiom 1835 to 1841, was
iittje greater than the product of 1830. The temporary tariff of September,
1841_, raised the duty to five cents per pound, and production rose to
almost 800,000 pigs. Since the passage of that of 1846, it has fallen to
500,000, and for this diminished supply there is little demand.
We have thus far seen that the application of labour and capital to the
opening of mines, the erection of furnaces, mills, and factories, and to the
conducting of such works, was arrested at the close of 1834, and that it
did not recommence until after the passage of the tariff of 1842. We have
also seen that it increased rapidly from 1843 to 1847, that it became sta-tionary
in 1848, and is now retrograding. Both seek to be employed, and
if denied employment at home they must seek it abroad. If employed at
home, there is a tendency to concentration and combination of action. If
sent abroad, there is a tendency to dispersion, with diminished power of com-bination.
One of these courses tends to increase the reward of labom-, the
other to diminish it. With a view to ascertain the effects of the two systems,
I give.
First, The" amount of i^imigration, as showing how far the wages of
labour tended to invite the people of foreign nations to come and reside
a,mongst us, and.
Second, The amount of shipping built, to show how far the establishment
of an import trade of men, the cargo that pays the highest freights, tended to
increase the facilities provided for the export of merchandise :
—
IMIGRATION.
1821 to 1829, 12,000 1842-3,
1830, . 27,153 1844,
1831, . 23,074 184.5,
1832, . 45,287 1846,
1833, . 56,547 1847,
1834, . 65,335 1848,
1835 to 1841, 07,520 1849,
88,133
74,607
102,415
147,051
234,742
229,492
209,610
These are the earliest years for wliich I have met with any accounts.
THE HARMONY OF INTERESTS 19
. 821 to .1829,
1830,
1831,
1S32,
1833,
1834,
1835 to 1841,
1842-3, .
1844, (nine mouths,)
1845,
1846,
1847,
1848,
1849,
Total shipping built,
tons.
average, 90,000
58,000
85,000
144,000
101,000
118,000
Per thousand. Per million of
of population. Steamers built. population.
8 1823-29 35 . 3-1
108,000
91,000
103,000=137,000
140,000
188,000'
243,000
31(3,000
25:1,000
4-5
0-4
10-5
11-4
8-1
G-6
9-4
11-8
15
11-8
34
100
65
68
92
108
163=217
163
225
198
175
208
4'6
4-7
5-7
5-8
11-4
8-5
11-5
9-7
8-3
9-G
We see here a large increase in the years from 1830 to 1834, follo-vved by
a gradual diminution until we reach 1843, after which the rise is very rapid.
On a former occasion, I stated that immigration was not aifected by
changes of policy until after the lapse of more time than was required for
other of the subjects we have had under consideration. A change tends to
raise or depress the value of laboiu-—to raise or depress the price of men
—
and after a rise has been effected, men come to offer their labour for sale.
It will be seen that the number in 1831 was less than in 1830, and that
it was not until 1832 that it rose. With the exception of 1835, it con-tinued
to rise until 1836-7, when it reached 78,083, after which it fell. In
1843-4, it felt the effect of the disastrous year 1842, and the number was
only 74,000 ; and it was not until 1844-5 that it began to grow rapidly.
At the present moment it is large, because of the great demand for labour in
the years that have passed, but it is now feeling the effect of the present
diminished demand, and consequent fall of wages.
Such, likewise, is the case with shipping. The first effect of a rise of
wages is to increase the power to obtain the necessaries of life, and it is not
until after that shall have been done that tlie power to consume foreign com-modities
tends materially to increase. The increase of ship-building did not
commence until 1832. It fell off in 1838. Thus far the movement is pre-cisely
the same as that of immigration. It recommenced in 18^4, somewhat
in advance of immigration. It is now maintained by that, 8ud that alone,
and when that is falling off, it must fall too. The close connection between
the power to secure valuable return-freights and the power to build ships, is
shown in the following table, in which the movements of both are shown :
—
Shipping built.
. 64,000
140,000
Immigration. Shipping built.
1821-31, aver., 14,000 . . 87,000* 1843,
1832, 45,000 144,000 1844,
1833, . . 56,000 . . 161,000 1845,
1884, 65,000 118,000 1846.
1835, ^. . 53,000 . . 60,000 1847,
1836, 62,000 113,000 1848,
1837, . . 78,000 . . 122,000 1S49,
1838-42, aver., 76,000 120 000
JmmieTation.
. 75;000 .
74,000
. 102,000 .
147,000
239,742 .
229,492
299,610 .
146,000
188,000
240,000
316,000
256,003
The amount of shipping at present employed is, probably, less than it was
two years since. A vast cjuantity now lies idle in the ports of California, and
it is to replace it that ships are now being built.-}- How far the immigration
* Average of last two years only 71,000.
\ The reason for now building ships may be found in the fact stated in the fjllowing
paragraph, which 1 take from one of the papers of the day:
—
"It is a remarkable fact, that of all the ships arrived in the bay of San Francisco from
20 THE HARMONY OF INTERESTS.
of the ensuing year is likely to afford inducements for increasing our tonnage
may be judged from the following comparative view of the arrivals at New
York in the last four months of the two past years, as compared with the
present one, furnished by the Commissioners of Immigration :
—
September, October, November, and December, 1847. 1848. 1849.
44,137 61,310 48,715
Instead of an increase of about forty per cent., there is a diminution of
above twenty per cent.; and that this decrease must go on, will be obvious
from the facts contained in the following paragraph, which I take from the
New York Herald:—
"Emigration to Eijkope.—The fine and well-tried packet-ship, Ashburton, sailed
yesterday for Liverpool, having on board 104 passengers, who having taken a
glimpse at 'the land of liberty,' and not finding it the El Dorado they expected,
came to the conclusion of returning homeward. They were principally natives of
Ireland. The Jamestown and Constellation sail to-morrow with similar cargoes."
Every man who thus returns prevents the emigration of a hundred that
would otherwise have crossed the Atlantic.
I propose now to show the tendency to depopulation, as marked by the
sale of PUBLIC lands, compared with immigration :
—
Land sold. Per head of Land sold. Per head of
Acres. Immigration. Acres. Immigration.
1821-29, average, 825,000 , . 69 1843, . 1,605,000 . 21
1830, 1,244,000 46 1844, 1,754,000 . 23
1831, . . 1,929,000 . 83 1845, . 1,843,000 . 18
1832, 2,777,000 61 1846, 2,263,000 . 15
1833, . . 2,402,000 . . 44 1847, . 2,521,000 . 11
1834, 4,658,000 70 1848, 2,747,000 . 13|
1835-41, average, 7,150,000 . 1051 1849, E,:jt obtained. • • X
1842, 1,129,000 11
At no period of our history has the process of depopulation proceeded
with the vigour that is now manifested. Emigrants from Europe are now
returning home, disappointed ; while the emigration to the West is almost
marvellous. The quantity of land sold does not, as I understand, give any
clue to the quantity occupied, because of the facilities afforded by the law to
squatters.
It is estimated, we are told, that from thirty thousand to fifty thousand
have been added to the population of Iowa within six iveeks, and that, by the
close of navigation, the population will have increased one-fourth since the
1st of September. Such is the course of things in regard to all the new
States, west and south-west; and, if to this be added the emigration to Cali-fornia,
it may be doubted if the population of the old States will be as large
at the close of the year as it was at the commencement.
the Atlantic ports, some of which have been anchored there for near four months, not one
is advertised for a return trip home. This, of course, is easily accounted for. There is
no freight to come back, but passengers and gold dust, and as these mostly prefer the
steamers, the ships have nothing to do bet to wait and see wiiat circumstances may do
for them. Meanwhile, the absence of so many vessels, and the improbability of an early
return, are having a strengthening influence upon home freights. Rates ere long must
rapidly advance ; and were it spring time now, instead of fall, I think it would be diffi-cult
to negotiate engagements at present prices."
A vast amount of capital has been locked up in ships that are idle, and others must
Qow be buih to take their place. If they were back again, ship-building would now bo
entirely suspended.
f To this must be added the occupation of Texas and Oregon.
\ To these must be added the occupation of California.
THE HARMONY OF INTERESTS. 2i
PRODUCTION OF FOOD.
The power to supply food to those who come to live amongst us, and also
to send it abroad in exchange for other commodities, may bo taken as some
evidence of the productiveness of labour applied to its cultivation, and I
therefore give the following statement of the export and import of wheat and
flour, in bushels of the former :
—
Population
Exports. Imports. by immigration. Depopulation.
1821-29, average, 4,400,000 12,000 69
1830, . 6,100,000 27,000 46
1831, 9,441,000 23,000 83
1832, . 4,407,000 45,000 61
1833, 4,811,000 56,000 44
1834, . 4,113,000 65,000 70
1835, . 3,914,000 311,0001
"
1836, 2,529,000 650,000
63,000
1837, . 1,610,000 4,000,000
"
10^
1838,
1839, .
2,247,000
4,712,000
927,000
1
Texas and Oregon.
1840, 11,198,000
[
72,000
1841, . 8,447,000 J .
1842, 7,237,000
}
88,000
11
1843, . 4,519,000 21
1844, 7,751,000 74,000 23
1845, . . 6,365,000 102,000 18
1846, 13,061,000 147,000 15
1847, . 26,312,000 20,000 234,742 [Mexico and
1848, 12,631,000 369,000 229,000 1-3
f California.
1849, . 9,500,000 299,610 J
It is here shown that, notwithstanding the rapid growth of manufactures
in the period from 1830 to 1834, the export of food was not only maintained
but it increased. The tendency to depopulation had diminished, and the power
to obtain iron to assist in the work of cultivation had increased. Thereafter, with
the increasing tendency to depopulation, as immigration and manufac-tures
and the power to obtain iron became stationary, the production
of food so far diminished that the price rose to such a point as to render it
profitable to import it; and it may be doubted if, notwithstanding the in-crease
of numbers, the whole quantity produced between 1835 and 1840
was greater than in the five previous years. From 1843, we find it gra-dually
increasing, notwithstanding the vast amount of labour employed
in producing coal, iron, cotton and woollen goods, ships, steamboats, &c.
How great was the increase may be seen by the following comparison of the
returns under the census of 1840, and the Patent Office estimates for
1847 :—
1840,
1847,
Wheat.
84,823,000
114,245,000
Increase, 29,422,000
Barley.
4,161,000
5,649,000
1.488,000
Oats.
123,071,000
167,867,000
44,797,000
Eye.
18,645,000
29,222,000
10,577,000
Buekwli't.
7,291,000
11,673,000
Ind. Corn.
377,531,000
539,350,000
4,382,000 161,819,000 252,304.000
Totals.
615,522,000
867,826,000
We have here an increase of no less than 40 per cent, in seven years,
during which the increase of population was but 23 per cent. Equally
divided among the whole people, there would be 36 bushels per head in the
one case, and 42 in the other; and thus we see that the increase in the faci-lity
of obtaining the machinery of cultivation is attended by increase in the
product of cultivation; while increase in the power to produce cotton and
woollen cloth enables the farmer to obtain for each bushel produced a larger
amount of clothing than before.
22 THE HARMONY OF INTERESTS.
The net export is as follows, per head of the population :-
1821 to 1829, . . -39
1830, ... -47
1831, . . . -71
1832, ... -32
1833, . . . -35
1831, . . . -29
1835 to 1841, . -25
1842-3, . . . -31
1844, ... -41
1845, . . . -33
1846, ... -65
1847, . . . 1-28
1848, ... -60
1849, -45
We see, thus, that with the exception of the year of the famine in Ire-land,
it has never reached a bushel per head, and that it has invariably
been largest in the periods of protection—those periods in which the largest
and most valuable home freights could be obtained. With the approach to
free trade the power to maintain trade has diminished ; and as we have re-ceded
from it and have approached protection, it has increased with the
growth of immigration.
The effect of this is seen in the constantly increasing quantity of Canadian
produce that passes through New York on the way to England. It is stated
that while in 1848 only 50,000 barrels of Canadian flour passed through
New York, the fjuantity in 1849 that came through by the single route of
Oswego was 200,000 barrels, and that there were, in addition, 623,000
bushels of wheat. This, being of foreign production, has, of course, to be
deducted from the amount of exports; but if the import of men should
diminish, freights outward must rise, and the tendency to send flour or
wheat to market through the ports of the Union will pass away.
Y\^hat was, prior to the census of 1840, the production of grain, it is not
now possible to ascertain ; but we know that, in the period from 1830 to
1834, prices were moderate and consumption was large. It is not probable
that it was as much per head as v/as given by the census for 1840, because
the increased facilities of transportation in the latter period enabled the
farmer to give more of his labour to cultivation. If it be taken at thirty
bushels per head, it will probably not vary greatly from the truth. In the
following period, production was so small that prices rose to a point that
permitted importation from Europe; and the advance so far exceeded that of
wages as to cause almost universal disturbance between employers and work-men.
It may be doubted if it then exceeded twenty-five bushels per head.
By degrees, the tendency to depopulation diminished; and, in 1840, we find
it' thirty-six bushels, to rise to forty-two in 1847. The same causes that
diminished production in 1836 are now again at work. Immense num-bers
of people are in motion changing their places of labour; and those
that have gone to California, New iVJexico, the Salt Lake, &c., can scarcely
be taken at less than a hundred thousand. These men are not now
producers; and thus,- while we have this year added to our population
280,000 persons from abroad rcc|uiring to be fed, we have exported great
numbers who have not only ceased to be producers, but have taken with
them vast quantities of food. It may fairly be doubted if the product of
this year, per head, exceeds thirty-eight to forty bushels; and hence it is, in
part, that the prices are even thus far maintained. Nevertheless, there is a
gradual tendency to a fixll of prices, showing a power of consumption dimin
ishiug in a greater ratio than that of production.
That the power to obtain food in return to labour diminished gi-eatly
between 183.5 and 1839 must be within the recollection of all who were
familiar with the events of that period. Never has there been experienced
in this country so much anxiety relative to the result of the harvest as was felt
in 1838. From that time, the tendency to dispersion diminished ; and, in
1839 and 1840, labour commanded good supplies of food, as is obvious from
the fact that immigration rose, attaining, in 1841-2, the height of 101,000.
The value of labour and food had, however, by that time greatly fallen, and,
THE HARMONY OF INTERESTS. 23
in 1842, it fell to a lower point than had been known for twenty years, the
consequence of which was, a great dimiuution in the immigration of the two
succeeding years. Thence to 1847, the increase was very rapid ; but. in the
following year, it became stationary, and is now falling rapidly.
We may now proceed to the next great article of food
—
SUGAR.
1821 to 1S29 .
roreign.
57,000,000
Crop of
Louisiana.
45,000,000
Total. 1>
102,000.000
n- liead.
9
1830
1831
1832
1833
1834
. 90,000,000
69,000,000
. 48,000,000
97,000,000
. 115,000,000
48,000,000
75,000,000
75,000,000
70,000,000
75,000,000
144,000,000
144,000,000
123,000,000
107,000,000
190,000,000
11
10^
9
12
13
1835 to 1841, 138,000,000 — ^ . 110,000,000 77,000,000 187,000,000 Hi
1S42 and 1S43 . 114,000,000 115,000,000 229,000,000 12i
1844
1845
184G
1847
. 182,000,000
. 114.000,000
108,000,000
. 232,000,000
105,000,000
200,000,000
186,000,000
140,000,000
287,000,000
314,000,000
294,000,000
372,000,000
15
16
14|
18
1848
1849
. 244,000,000
. 242,000,000
240,000,000
220,000,000
484,000,000
407,000,000
23
21^
Wf> Rffl hpvp n. rmiifl inr-iPfi<5r> nf r:nnisnmi-i inn from 1 S^C) tn lS?a an r1 that,
it then diminished in actual amount until 1844, and that the average of
1846-7 and 1847-8 was but little less than double that of 1842-3. The power
to consume foreign sugar has kept steady pace with the increase in the home
supply, giving a total consumption for the year 1847-8 ' exceeding, by more
than 150 per cent., that of the period from 1821 to 1820, and almost double
that of 1842 and 1843.
The power of producing food thus kept pace with the power to apply
labour and capital to the conversion of food and other raw materials into
iron, cloth, and other commodities requisite for the use of man ; and
thus both kept pace with the tendency to the concentration of population.
With every increase in the power of production, consumption grew, and the
labourer received larger returns for his labour, producing a tendency to
immigration. With every diminution in the power of production, the power
to pay for foreign commodities diminished, and hence it was that the early
years of the approach to freedom of trade were signalized by the creation of
a vast debt, the interest on which has now to be paid.
INTERNAL COMMERCE.
We may now examine how far the power to maintain internal trade waxed
or waned with the increased or diminished power of production, for which
purpose, I give the tolls on the three principal routes between the east and
west, and the tonnage that passed through the Louisville and Portland Canal.
In examining them it will be proper to bear in mind that the receipts from
immigrants from Europe, in the last two years, have been prodigious, not-withstanding
which there has been a large decrease in the two from which I
have been able to obtain complete returns. It follows, of course, that the
receipts from merchandise have greatly diminished in their ratio to popula-tion.
Should immigration continue to fall off, the deficiency in the receipts
from these works will become of serious importance to the treasuries of both
New York and Pennsylvania.
24 THE HARMONY OF INTERESTS.
TOLLS.
Baltimore Ton'ge,
New York Per 1000 of and Ohio Per 1000 of Penn. P. 1000 of L. &P.
Canal. population. Railroad. population. Canals. population. Canal.
1826, $844,000 $73
1827, 880,000 74
1828, 829,000 68
1829, 815,000 65
1830, 1,042,000 81
1881, 748,000 56 $31,000 70,000
1832, 1,112,000 81 137,000 9-9 70,000
1833, 1,388,000 98 196,000 13-9 148,000 10-5 170,000
1834, 1,381,000 95 205,000 14-1 306,000 2M 162,000
1835, 1,482,000 99 263,000 17-6 079,000 45-4 200,000
1836-41 1,655,000 102 349,000 21-5 1,020,000 60-7 223,000
1842, 1,749,000 97 426,000 23-6 903,000 50'0 172,000
1843, 2,081,000 112 575,000 31-0 1,014,000 55-0 232,000
1844, 2,446,000 128 658,000 34-6 1,164.000 61-5 304,000
1845, 2,646,000 135 718,000 37-7 1,154,000 59-1 318,000
1846, 2,756,000 138 881,000 44-0 1,357,000 68-0 341,000
1847, 3,635,000 177 1,101,000 54-0 1,587,000 78 307,000
1848, 3,252,000 155 1,213,000 60-0 1,550,000 73-3 341,000
1849, 3,266,000 150 1,241,000 57-2 1,580,000 72-4
The Lake tonnage in 1834 was ^ , , . 28,521 tons.
In 1841 it had risen ito only . , 56,,252
1846 it was . , , . , . 106,836
1847, ^ , , , 139,,399
1848, . . . . . 166,400
We thus see while it increased but 28,000 tons in the first period of seven
years, it has gained 110,000 in the last, and nearly all of this since 1843.
At the present time there is no tendency to increase. The great support of
this trade is found in the transport of immigrants, and any diminution therein
must be followed by a diminution in the tonnage.
In 1842, the Steamboat tonnage on the western rivers was but 126,278,
and the tendency was downward, as the business was very small, as may be
seen from the number of trips made by certain boats :
—
Boats. Trips. Boats. Trips.
1839, . . .35 . . 141
I
1841, . . .32 . .162
1840, . . . 28 . . 147 1 1842, ... 29 .. 88
In 1846, only four years afterwards, it had almost doubled, the amount
being 249,055. In the two succeeding years it increased rapidly, as may be
seen by the following statement of boats built at Cincinnati :
—
1845-6, 5657 tons. | 1846-7, 8268 tons. | 1847-8, 10,232 tons.
In the last year the tendency has been downward; the boats built being
only 7281 tons; and the number of arrivals being only 3239, against 4007
in the previous year.
We thus meet everywhere the same results. From 1835 to 1843, scarcely
any increase; but from that date every thing starts into life and grows with
rapidity. Arrived at 1848 and 1849, all tends downwards, notwithstanding
the great increase of population.
TRADE OF NEW ORLEANS.
The value of the principal products of the interior received at New Orleans
from 1841-2, to the present time, has been as follows:^
THE HARMONY OF INTERESTS. 25
1841-2,
1842-3,
1843-4,
1844-5,
Total.
M5,716,045
53,782,084
60,094,716
57,106,122
1845-6,
1846-7,
1847-8,
1848-9,
Total.
$77,193,464
90,033,000
70,779,000
81,889,000
The value doubled in sis years, but it is now falling, notwithstanding the
large increase of western population in the last two years.
NEW YORK
Being the place supposed to be most benefited by perfect freedom of trade,
we may profit by an examination into the effect of the various systems, as
exhibited in the number of houses built in that city, as compared with the
population of the country, of which it is the commercial capital. The ear-liest
account I have been able to obtain is that of 1834:
—
Per million of Per million of
Houses tuilt. population. Houses built. population.
1834, . . 877 . . 60 1845, . 1980 . 101
1835-41, average, 943*
1842, . . 912 .
1843, . . . 1273 .
• 58
50
69
1846,
1847, .
1848,
. 1910 .
1823
. 1191 ,
95
. 90
60
1844, . . 1210 64 1849, 1496 68
The rapid extension of Brooklyn has been since 1842. Had it been
possible to obtain a similar account of that city, which is but a suburb of
New York, the diff"erence would have been much more striking. We have
here, however, all that is needed to show that houses in New York grew with
the growth of factories and furnaces, and diminished, as they now diminish,
with the cessation of their operations.
PHILADELPHIA.
It is deemed desirable to give the movement of Philadelphia as the
distributor of a large portion of the coal and iron of the Union, and as the
centre of an important portion of the commerce between the East and the
West ; but it is impossible to obtain the number of houses built, because of
no such record having been preserved, by several of the districts, until quite
recently, and to give the movement of the population in the several periods,
it is necessary to take the returns under the State censuses, which are septen-nial,
and those made under the authority of the federal government, which
are deceniiial. The former returns give only the number of taxables, but by
multiplying them by five the population was always found to be nearly ob-tained,
and I have done so throughout, although it is said that the proportion
of non-tasables has within a few years so far increased as to make it neces-sary
to multiply by five and a half How far that is the case will be deter-mined
by the census of next year.
1821. State census
182S. I
1830. U.S. ((
1835. State u
1840. U.S. u
1842. State u
'849. K u
Taxables.
27,892
37,313
49,847
5],0G3
77,285
Eatio to population
of the Union, in
Per cent, thousands to mil-
Population, per annum, lions.
139,460 . . 15-3
186,565 increase 4-9 . 15-2
188,958 " -6 . 14-6
249,235 « 6-6
258,000 « -8
255,315 decrease -5
386,425 increase 7-4
ie-7
151
14-1
17-7
• Of these the number built in 1835 and 1S3G, before the Compromise began to have
much effect, was greater than in any three of the other years.
4
26 THE HARMONY OF INTERESTS.
It appears obvious that the productive power of the country diminished
from 1835 to 1841, and still more rapidly in the two following years; and
therefore it was that the power to pay for foreign commodities diminished so
much that consumption could be maintained only by obtaining goods on
credit, to be paid for at some future time, and bearing interest until paid.
The following table will show the value OF EXPORTS, being the amount of
merchandise received from abroad in payment for merchandise and freights.
Value of Debt paid oflf.
1821, to 1829, aver..
exports,
$5
per head. Debt contracted.
1830, .
1831,
1832, .
1833,
1834, .
4-32
6-10
5-51
0-20
7-08
1835 to 1841, aver., G-02 . ^170,000,000
1842-3, . 4-48 Interest unpaid.
1844, .
1845,
1846, .
1847,
5-03
5-16
5-75
7
1848, .
1849,
5-88
5-19
8,000,000
. 22,000,000
Interest.
^5,000,000
5,000,000
With each stop in the diminution of the power to produce, there is dimi-nished
power of purchase, and hence the necessity for obtaining goods on
credit. So it was from 1835 to 1841, and the result was almost universal
bankrui^tcy. So is it at present, and the goal towards which we are moving
would seem to be the same. The amount now required for the payment of
interest is about 814,000,000 per annum, being $2,000,000 more than was
required for the same purpose two years since.
In the following table are given two species of articles, of one of which
(flax) a large part was freed from duty by the Compromise tariff, and so con-tinued
until September, 1841, while the other was subject to the same pro-visions
as manufactures of other kinds. It will be seen how small is the
difference of movement, proving that the amount of importation depends
upon the 2^oifcr to import, and is but slightly affected by the cpestion of duty.
Sept.
June
Manvifactures
of flax.
Per
head.
China and
earthenware.
Per
head.
30, 1821-29, average. . §3,333,000 29 §1,160,000 10
" 1830, .
" 1831,
" 1832, ,
" 1833,
" 1834, .
3,011,000
. 3,790,000
4,073,000
. 3,132,000
5,485,000
23*
28
1
30
22
38
.
1,259,000
1,624,000
2,024,000
1,818,000
1,591,000
10
121
15
13
11
" 1835-41, $6, 350,000-
" 1842 to 1
30,1843, /
average.
-1=5,080,000
2,900,000
31
15}
1,950,000—1 =1,560,000
. 1,300,000
9J
7
" 1844,
" 1845, .
" 1846,
" 1847, .
. 4,492,000
4,923,000
. 4,972,000
5,152,000
23J-
25^
25
25
• . • 1,632,000
2,166,000
2,201,000
2,320,000
8^
11
llj
11
" 1848, §6,600.000-
" 1849, 5,700,000-
-1=5,660,000
-^=4,750,000
27
22
2,600,0^0—1:
2,231,000—J:
=2,228,000
=1,860,000
10
8^
* In ] S29, the debt of the Federal Govevnment was §58,000,000. In the year 1 833-4,
it was reduced to §4,000,0U0, and in the following year to §37,000. As much of this wa.s
held abroad, the amount paid ofi' in this period was probably equal to that of Slates and
corporations transmitted abroad at the same time.
THE HARMONY OF INTERESTS. 27
We sec licre the importation of linens increasing nnder the tariff of 1828,
diminishing from 1835 to 1841, and siilL further diminishing in the closing
years of the Compromise tariff. Thenceforward it rises rapidly, notwith-standing
the inci casing tendency to substitute manufactures of cotton for
those of flax.
In regard to China and earthenware, we see the same course of events.
The importation rises under the tariff of 1828, diminishes under the Com-promise,
and still further diminishes in 1842-3, when it begins to rise imder
the tariff of 1842, but never attains the same height as in the previous period.
FRENCH MERCHANDISE.
Per head.
1822 to 1829, average, . . . . 9,130,000 81 Silks subject to duty.
1830, 8,240,000 G4
1831, 14,737,000 1-11
1832, 12,754,000 92
1833, ... ... 13,962,000 1-00 Silks free.
1834, ... . . 17,557,000 1-21
1835 to 1841, average 25,200,000 — i, 20,160,000 1-24
1842 and 1843, average, . . . 14,500,000 80 Duties reimposed.
1844 17,952,000 94
1845, 22,069,000 1-13 "
1846, 21,600,000 1-08 "
1847, 24,900,000 1-21 "
1848, . . .28,000,000 — 1, 24,000,000 1-14
1849, 23,233,000 — 1, 19,300,000 90
We have here the same results as elsevi^here. The commodities we receive
from France are almost altogether articles of luxury. In the period between
1829 and 1834, there is a gradual increase, until, in 1834, the consumption
exceeds by fifty per cent, the average from 1821 to 1829. Thenceforward
the amount remains almost precisely the same until we reach 1841. In the
period ending June 30, 1843, it falls to the level of fifteen years before.
In the following year, it begins to rise, and, by 1847, attains the level of
1834. In 1848 it falls to Sl-14. In 1849, the amount, paid for, falls
almost to the level of 1842-3.
The remarkable part of this table is, the small increase produced by the
abolition of duty upon silks, and the fact thiit the import rapidly increased
after the duties had been reimposed.
TEA AND COFFEE.
The following table represents the quantities of tea and coffee retained for
consumption rather than the actual consumption of the respective years, and
the great irregularity of amount is more apparent than real. It is here
shown, that the average consumption of tea in the years 1833 and 1834,
the last two years in which the tariff of 1828 was in activity, was greater
than that of the ensuing ten years, and that, notwithstanding the great
increase of population, it did not rise above that quantity until 1845. Of
coffee the consumption per head was little greater from 1835 to 1841 than
the average of 1883-34.
28 THE HARMONY OF INTERESTS.
Per head
•53
Coffee. Per head,
pounds, 24,000,000 2-13
•53
•35
•63
•91
90
88,300,000
75,000,000
36,000,000
(Duty free,) 75,000,000
44,000,000
S^OO
5^60
2^60
5^30
3-00
•62 89,000,000—1, 71,200,000 4^40
•71 107,000,000 5^60
•68
•88
•84
•70
149,000,000
94,000,000
124,000,000
152,000,000
7-85
4-82
6^20
7^25
1^00
•61
145,000,000
151,000,000
6-90
7-00
Tea.
1821 to 1829, average, pounds, 6,000,000
1830, 6,800,000
1831, .... 4,600,000
1832, 8,600,000
1833, . . (Duty free,) 12,900,000
1834, .... 13,100,000
1835 to 1841, 12,600,000 — -}, 10,080,000
1842-1843, " 13,000,000
1844, " 13,000,000
1845, " 17,100,000
1846, " 16,800,000
1847, " 14,200,000
1848,
'" 21,000,000
1849 " 13,213,000
The great question to be settled is—" Which is the system under which
the labourer is enabled to obtain the largest quantity of food, fuel, clothing,
machinery of production and transportation—protection or free trade?"
The former is denounced as a " war upon labour and capital," and yet it
seems clear that the power to consume all those things for which men are
willing to labour, and in the production of which other men are willing to
invest capital, was greater under the two protective tariffs than at any other
period, and that it is now gradually, but certainly, diminishing. Wages are
falling, and the result is, a diminution of immigration, and an increasing
tendency to emigration, both accompanied by a decrease of productive power,
to be followed by a futher decline of wages, and a further increase of
emigration. Shipping has grown with immigration, and freights have fallen,
but, with diminution in the former, the latter must rise, and many of the
commodities that we have recently exported will have to remain at home,
and thus there will be a diminished power of importation, accompanied by
a diminution of the public revenue, the improvement of which was one of
the objects proposed in the adoption of the policy of 1846. How the
different systems have thus far operated upon the receipts from import duties
will be seen by an examination of the following table.
CUSTOMS REVENUE,
Derived from the import of Merchandise paid for tvith our Exports.
Per head.
1821 to 1829, average, ..... 18,500,000 1-69
1830 to 1834, ....... 24,000,000 1-75
1835 to 1841, average, . . . §17,170,000
Less one-fifth, for goods bought in ex-change
for certiticates of debt, . 3,404,300
13,736,000 0-84J
1842 and 1843, ...... 16,400,000 0^90
1843-4,........ 26,183,000 1-38
1844-5, 27,528,000 1-41
1845-6,...... 26,712,000
Add duty on $5,000,000 of debts re-deemed,
.... 1,500,000
28,212,000 1-41
1846-7, 23,747,000
Add duty on $5,000,000 of debts re-deemed,
.... 1,500,000
1847-8, 31,757,000
Deduct duty on the amount of debt
created, say $8,000,000, . . 2,400,000
— 25,247,000 1-23
184&-9, ...... 28,346,000
Debt created, $22,000,000—duty, . 6,600,000
29,357,000 1-40
21,746,000 1^00
THE HARMONY OF INTEIIESTS. ' 29
It is here seen, that the importation of duty-paying articles increased so
much under the tariff of 1828, that the revenue per head was greater than
in the previous period, although the duty on railroad iron and on tea and
coffee was abolished in 1832. The case would, however, appear much
stronger were allowance made for the movements of specie. The period
from 1821 to 1829 was one of great exhaustion, and the exports of
specie exceeded the imports by an average of almost one million a year
whereas, the imports of the following period exceeded the exports by an
average of five millions a year. The total difference is therefore six millions
a year. Had this been imported, as in the previous period, in the form of
duty-paying articles, and had the duties on tea and coffee been retained, the
revenue would have exceeded two dollars per head.
With the next period, we find a great decrease in the revenue, indicating
a diminished power to pay for foreign merchandise, resulting from dimin-ished
productiveness in the application of labour at home.
With 1842-3, there is a trifling increase, resulting from the action of the
tariff of 1842, which was in operation during the last nine months of this
short period.
From June, 1843, to June, 1846, the amount rises to an average of
$1-40, and maintains itself during the first three years of the period. The
passage of the act of August, 1846, connected with the warehousing system,
tended to reduce the amount received into the treasury in the last year of
this period.
With 1848, we find the average maintained, without, however, the increase
that might naturally have been looked for in consequence of the great
demand for breadstuffs, consequent upon the failure of the potato-crop in
Ireland.
In the last year (1848-9), being the second in which the tariff of 1846
was in action, the amount of revenue derived from merchandise paid for hy
our exports has greatly declined.
In comparing the receipts under the tariff of 1842 with those of that of
1828, it is necessary to bear in mind, that, in the latter period, before mer-chandise
could be purchased, there was a sum of ten millions of dollars to
be provided for payment of interest on the debt incurred in the free trade one.
At thirty per cent., that would have given three millions of dollars, or about
fifteen cents per head.
The total amount of interest now to be paid is about fourteen millions of
dollars, and this claim must be discharged by our exports before merchandise
can be purchased : the consequence of which must be, a great deficiency in
future revenue.
AVith these facts before us, we may now examine the different revenue
systems that have been presented for consideration and adoption. By the
English school it is held that, as cultivation first commences on the
richest soils, agricultural labour is then largely paid, and the diversion of
any portion of the population to mechanical pursuits is attended with loss.
Observation, however, shows that the first cultivator commences, invariably,
on the poorer soils, and that the rich lands of river bottoms, the underlying
beds of marl, limestone, &c., are only brought into cultivation at a later
period. The English school holds that mechanical labour must necessarily,
because of the abundance of fertile. land and consequent profitable appli-cation
of labour, be dearer in a new than in an old country, and that
competition can be maintained only by aid of laws restricting importation.
It holds that double loss results from such restriction, labour being with-drawn
from the profitable pursuit of agriculture to be given to the com-paratively
unprofitable one of converting agricultural products into the
so THE HARMONY OF INTERESTS.
various commodities required for tlie use of man : also, tliat these per-sons,
thus unprofitablj employed, are maintained out of taxes imposed
upon the consumers of their commodities, and that every dollar paid to the
government on the import of- articles, in part manufactured at home, is
accompanied by the payment of five, ten, fifteen, or twenty dollars paid to a
selected class, thus living by taxation imposed on their neighbours for their
support. This idea may be found fully carried out in a report of the late
Secretary of the Treasury, for 1846. It is there shown, that all the coal
consumed in the Union costs the consumer $1-60 more than it would do
under a system of free trade, although the average price of all the coal sold
at Pittsburgh, Wilkesbarre, Mauch Chunk and Pottsville did not, at that
moment, exceed $1-50.
To relieve the consumer from this double taxation, the English school
holds that all duties for revenue should be imposed upon articles that cannot
be produced in the country, such as tea, coffee, &c., and that all those that
can be produced in it, should be admitted free. Such is the theory that
dictated the tariff of 1846, and the subsequent efforts to amend it by the
imposition of a duty on tea and coffee.
The other school holds that articles which can be produced at home should
be protected, while those which cannot should be admitted free of all duty,
and such was the view which prompted the abolition of all duties on tea
and coffee, by the act of 1832.
By the working of the two systems, their value is to be judged. In the
first eighteen months of the tariff of 1832, tea and coffee were admitted free
of duty, with a loss to the reveime of nearly three and a half millions of
dollars per annum, to which was to be added a great loss of duty on silkSj
also free ; but the protection of manufactures generally was maintained, and
the consumption of foreign merchandise liable to duty continued so great,
that the revenue increased more rapidly than the pojDulation. . In the
succeeding period, protection gradually diminished, with a certainty of its
total disappearance as the Compromise bill should come fully into action, and
the prodxictiveness of labour became so far diminished, that the payment
into the Treasury for duties on foreign merchandise fell to an average of
less than one-half of what it had been from 1829 to 1834.
With the tariff of 1842, it rose gradually, and with a steady upward
tendency ; while, as that of 1846 comes into operation, there is a movement
directly the reverse.
PUBLIC EXPENDITURE.
When men live in connection with each other, they are enabled to protect
themselves, and have little need of fleets or armies for their protection. A
few officers car^^ then perform the duties incident to the maintenance of
government. They then exercise, in a high degree, the power of self-government.
When they are widely separated from each other, they are unable tc
protect themselves, and have need of fleets and armies for their protection.
Many officers are then required for the performance of the duties of govern-ment,
and the power of self-government is diminished.
With the increase of fleets and armies, and of government officials, the cost
of government is increased.
The policy of 1828, and that of 184!^, tended, as we have seen, to concen-tration
of population and combination of exertion, and, therefore, to increase
in the power of self-government. That of 1833 tended, and that of 1846
tends, as has been seen, to dispersion of population and diminution in the
power of combination, and, consequently, to diminution in the power of self-
THE HARMONY OF INTERESTS. 31
government. What has been the efFcct of the two systems on the public
expenditure I propose now to show. The true " war upon hxbour and
capital," is that which increases the cost of government, and thus diminishes
the power to accumulate capital, to be used in aid of labour. Every step
towards diminution in the ex^penditure for that purpose tends to raise Avages;
and every one tending towards its increase, tends equally towards diminution
in the power of both labourer and capitalist to command the necessaries,
conveniences, or luxuries of life.
From 1821 to 1829, the total expenditure of the government,
exclusive of payments on account of debts previously existing,
was $117,000,000, being an average of .... $13,000,000
From October, 1829, to October, 1834, the period of the
tariff of 1828, the total expenditure, exclusive of such pay-ments,
wa.s 84,000,000, being an average of . . . . 16,800,000
From October, 1834, to October, 1841, the period of the
Com^jromise, during which we colonized Texas and Oregon, the
total expenditure was S223, 000, 000. In this period there were
no payments on account of the old debt, the whole having been
extinguished at the close of 1834. The average of this period
of dispersion was ........ 31,700,000
From October, 1841, to June 30, 1843, was a period of
exhaustion, and the wants of the government were such as
precluded expenditure. The average was .... 20,400,000
That of 1S43-4 was 20,600,000
That of 1844-5, 21,400,000
With 1845-6, we recommence the system of dispersion.
The occupation of Texas had brought with it war with Mexico,
and the expenditure rose to . . - . . .26,800,000
In 1846—7, dispersion increased, and large armies were sent
to Mexico for the purpose of compelling the cession of Cali-fornia,
the conseque'nce of which was that the expenditure rose
to . . - 59,400,000
In 1847-8, it was 45,000,000
x\nd a large amount remained unsettled.
In 1848-9, 46,798,000
As a necessary consequence of this system, the public debt, which was
extinguished under the system of concentration, grew rapidly under that of
dispersion, to be again diminished under that of concentration, and now again
increased under that of dispersion.
PUBLIC DEBT.
1821,
1829,
$89,987,428
58,421,414 Decrease in eight years. pi, 560,014
1834,
1834-5,
4,760,082
37,733
" five years.
Extinguished.
53,661,332
1841, 6,737,398 Increase in five years. 6,737,398
June 30, 1843, 26,898,958 " two years. 20,161,560
" 1845, 17,093,794 Decrease in two years, 9,805,164
<(
1848,
1849,
48,526,379
64,704,693
Increase in three years,
" one year,
CREDIT.
31,433,585
16,178,314
With every step in the diminution of debt, credit grows ; with every one
in the increase thereof, credit diminishes.
The policy of 1828 increased production and raised wages. The power to
32 THE HAUMONY OT INTERESTS.
pay for foreign commodities was great, and the revenue was large, the conse-quence
of which was the extinction of the public debt, at the close of 1834.
Credit was therefore high.
The policy of 1832-3 diminished production and lowered wages. Credit
was high, and we obtained cloth and iron in exchange for certificates of debt;
the consequence of which was, that, at the close of 1841, the foreign debt
was two hundred millions, much of the interest of which we were unable to pay.
Under the Revenue tariff of 1841-2, public and private revenue almost
disappeared, and bankruptcy and repudiation were the necessary consequence.
Under the tariff of 1842, production increased and wages rose. The
power to pay for foreign commodities increased, public and private revenue
grew, and we commenced to diminish our debt, the consequence of which
was the perfect re-establishment of credit.
Under the tariff of 1846, production diminishes and wages have fallen.
The power to pay for foreign commodities is diminishing, and we are again
buying cloth and iron, and settling for them with certificates of debt, the
amount of which transmitted to Europe in the two years ending June 30,
1849, is estimated at thirty millions of dollars; all of which we have, in
that time eaten and drunk, and used, but have yet to pay for.
With a view to present at a glance the results obtained by this examina-tion
of the policy of the Union, I give the following diagrams, in which the
movement under the various systems is distinctly shown.
No. I. gives the nine years from 1821 to 1829, when the tariff of 1828
came into operation.
No. XL—The years of the protective tariff of 1828, from 1829 to 1834.
No. III.—Those of the Compromise tariff, from 1834 to 1841. In this
case, it will be observed that I have in all cases deducted from the con-sumption
of imported commodities one-fifth, that being the quantity obtained
in exchange for certificates of debt.
No. ly.—This represents the movement under the strictly revenue clauses
of the Compromise tariff'. In some cases, as will be seen, one year, and in
others two years are included in this period. The returns for coal, railroad
and canal tolls, &c., are made from the civil year, whereas those connected
with commerce are made for the fiscal year ending June 30. The effect of
taking one year, is to throw into No. III., the period of the Compromise, one-half
portion of this period, and the other portion into No. V., the period of
the tariff of 1842.
No. v.—The tariff of 1842.
No. VI.—That of 1846.
In the diagrams representing the movements of iron, coal, cottons and
woollens, the consumption is given in two sets of lines ; one representing the
domestic products consumed, and the other the total quantity. An examina-tion
of the-m will show, that the , amount of consumption is dependent upon
that of domestic production, and that any deficiency therein is never compen-sated
by increase of importation, as it should be, if the theory were true upon
which the tariff of 1846 is based.
Consumption of Iron, Foreign
AND Domestic, in pounds per
head of the pojmlation. (See
page 11.)
^HiiNBaaaHBBiafiaBiUHE^aiafaBHBi
iHiSiZaSBffl>.aawBgaiH
IBHiPilHSBBaitllEHSHBHal
Railroad iron was exempted from duty in the third year of the second period, and from
that time consumption ceased to increase.
Total,
Domestic,
THE HARMONY OF INTERESTS. 33
Consumption of Coal, Foreign
AND Domestic, in tons per
thousand of population. (See
page 13.)
Consumption op Cotton
Goods, Foreign and Dom.
in pounds per head of the
population. (See page 15).
Total,
Domestic,
U~\
id
SHaHSiBBBOHHIl
iBniK»Y9aEiiBHBin!inHaiqHiM^9'^iLir ->
rHnRnqnHEPBBBBBBBBBBBBBaHBIQVgS
IsnBBnsaaftHaBHBRflBBiflBapBisMPa
Consumption or Woollens,
Foreign & Dom., in lbs. per
head ofpopulation. (Seep. 17.)
Total,
Domestic, 31-2
<»€''«
iBBBnvBa«.4ir«v
CS,SEdili " HWinHi^vimif»s 4
Fboduotion op Lead, in thou- Z iSBKfililttMISBiEii
sands ofpigs. (See page lo.)
iBHEaMl
„„ H'^'SSSaR'VRBBBRflBBBBBBBBBBiSBJBL^
"Z «» BtHcfSSfiBBBBBBBBHIBnBiBBBtffaHSi
Z '' iPl ^^QBlHBBnHBHBBBBflaRBBKHp
f° g<5SStfBBBBBBBSBi«iaP''-J«^
Population, as shown in the [
increase of immigration, in
thousands. (See page 18.)
RVHNMHMRA^aBaBBBlSaBBl&aBaqBBBBB!
34 THE HARMONY OF INTERESTS.
Shipping Built m^^ons pa- jl^^t&y^'^^rrr' -iliB^^HIg,
tliousand of population. (See \t^mmm'mMmi-' "^c ^^s^iBBHunB^
page 19.)
„ 'Jl^At X 0.^1
diHEiliiBSeiaE.AifiBSwa{E>Ef^l^Bir
COMPAKATIVE ViEW OP THE f°
Movement of Immigration soo
AND Shipping, in thousands. 2io
(See page 19.) iS
Ut ''d Jb
IHBBBB
! Bi&Llb4flHI9V»i£
BBHMB'^BVai .. BBBBVaSBVi
BBBBB'^ii«»H;>
BidJ
<«<4 a.
fid !r
BBS^ShISi
BBBX#4i«i f 3 BBiBgMJ 17 Id.
-" a&
BMBflBBPUBHfal
Shipping,
ImmJsnib'on,
I &.RBHVHB
p «B'"BBi:::z
1 "laBBBViEVnB
*^3l!rBBHS9B«
ASnUHHdfBIHHil
aVTMIBBnSffB _
^HOrBBBbBKa B
cflnSBQIIBba I
frtJii«!nBB<il!S«a b-SBEt b 1
kirSBiftBflBfi&BirtPSE^ik'i ]
t ri°lBBBPHllEP»SHMdlSt B h fe
n7Ma5BaSSBH"**W3BBBrTa ^^ j
«<!AsttBBBBBBBBBVBP3'S«BSB 'iff , s'dfEBBBBBBBBB^IilQBSIBHBBLV'- b^lh
IBBBBBBBMBBBBb
HHEIilBBBSBIBBIIB'r
Number op Steamers built,
^^
per million ofpopulation. (See 9
page 19.)
'
3
HSISSSil !?o Depopulation, as sJioion in the
occupation of Public Lands,
comp)ared iciih immigra-ra/
gBBBBBBBBIiBtA " ^ »S,i,n«ll7«>i»
^.^BBBBBIIBBBBWBrjEJhl! If^SLSS^fi^r^ *' 'Ca^ft.NH^BBRBaBilUiHBbBMEn^Lt jl
4 fU Vn»WBHBir«EW3(4BRgn
tion. (See page 20.)
^s***
THE HARMONY OF INTERESTS. 35
Production of Grain, in husl
els perheadofpojndation. (Se
page 21.)
tuyna* ^ 5 i H-W*^
f^rfSjt& > sgMguaqF a
sssssisss.— f araqgirrss At PI!
iSSSSai v,Hiin^Bi»SHSs:«A!!;
IIvhSISIbhSSSribkSmb asabavw^g
3 S«JaailB!BBHHIIBfc 'liH ' ^ S^o
Production and Consump-tion
OF Sugar, Foreign
AND Domestic, in pounds
per head ofpopidatlon. (See
page 23.)
Tolls on the New York
CANALSm dollars per tliou-sand
of population. (See
page 24.)
anDLUM
fK&nv BtaamgiBiBMBBBaHaBaiiBB
4 HIM (^"o|rJa-JiaBBBBlBiPi^P^iTilB^!Sieii^P^
>EHHMJIiffi«i '^
aflBankii^iti^/"' ,_
«J19|At1«P>f !? Rt * c
Tolls on Pennsylvania Pui
Lie Works, in dollars jje
iliousand ofpopulation. (Se
page 24.)
k l>4»
4e
L ft WtA "»!&
BB'"f»«*» f l^Be
v.*
Tolls on Baltimore and (
Railroad, in dollars per
sand of population. (See |
24.)
Trade on Louisville aki
Portland Canal, in tliov.
sands of tons (Seepage 24.)
**f
jf"?*-it r Jit
3^
ISO
I
100
1
JliiilliiSsfegiiiiii
36 THE HARMONY OF INTERESTS.
Lake Tonnage, m tJwusands 1™1F . ^ si^M^i
of tons, (feee page 24.)
IB MraBinBBi»E«ffii!>i-iHaAEnc ::» '^e^o
iBBBHHBIHIIHIIiifrBaB?'- -SN !>>»
sanBBiniMiiiiibiriaaaHaGS&HiEAfBEii
gBBiiMBVriiaiaSi<E<>flHai!iSiP^aHi
Western Steamboat Tonnage, jg;,
in thousands of tons. (See
page 24.)
V. VI.
•riB
IB
'*;*'J«('KE.^'^' /'"E. SrasT^^W
WBaaaiiiBBBVBBBHMHBB RPV<fSlf
SBIHHmHBBBIfiBqnBEar
BBVBBnBIBBMBBM|.ft« ^tflfllr
»»««» flBBBHBUBBBHKB»E» 4VHB HBBB BBBBffiaVBBBSBiiefi.iJ ESl
i-il, J ffa a "~_. "»»
^»i rw "'»aH<*
BBBEiZif B^ M WaaVi't 3S».iSD9 BBHCQL *<E**«it»^»* VBB
BnBHBHBBBl"1f 4- fCbPtt-' -jHVa
Value op Produce received ud
AT New Orleans, in millions ^^
of dollars. (See page 25.) m
inninilllMliiiiiiiiiai
lii^B^lMjsa^jss^ia^^a^sgi^B^^iagBi
Houses Built in New York, loo
jjer million ofpopidation. (Sec I*
page 25.)
Population op Philadel-phia,
in tliousands.
Ratio op Philadelphia to
THE Population op the
Union, in thousands to mil-lions.
(See page 25.)
BBHiiliB iBBIIBfliC«IBBaaBII"iiFib^'^«
HBBRHBBBBBBBR^IEyi^liH
ZDHBBBBBBBBBBIS *f iSmS
BBBEeaBBaBBHcix B"^
B—BBBEBBBBBBBBRt'^LiiBEliA iBBBBaaaaaanBtfAiaaSr
IBBBSBSSmBS.BD^'Q^BB
EiPdaaBBe»Baa&BB4aaa
aHRHHnBHa»Kff'gpnR«aa
dBBaaMfaaaaaeaBeBsa BBi
imm BBBnBBBiUBBBEca'VBaaB'
(aaBBBfliQB BBBBBB-'HKiBBBf . !^« IBIta
^&Uik fl
^IHiBBBBaBlin&lillBBHPfVe^'- ackads
IIBBaBBaaBBBBB&9a.^-^A9ait.flQtf gggSS iBBBBBaBKaapaaaBHBi^fiflBE
jaaWBBBWaWBBMBBBJiBgHBaBBBBBIHBK
Value op Exports, per head
ofpoindation in dollars. (See ""
page 25.) |
jV't i <.!!k/b ih *HaBBa!^5i«^
mmsimm.mmmmm
mmmmmmmmi
THE HARMONY OF INTERESTS. m
ni. IV. V.
~E^n! smmL
Kalidis
IIbbI*
atsHsaainlllH
Foreign Debt, in millions of
dollars. (See page 25.)
Imports of Foreign Woollens,
paidfor hy our exports, in cents
per head of the popidation.
(See page 16.)
Imports of Foreign Cotton
GOODS, paidfor hy our exports,
in cents per head of thepopida-tion.
(See page 15.)
XL
, BBHn!rnnBBBne«'<i«BiHi
gagguHBHaHnuBBSBii
^SBflBBBBBBaHBBtaHi
IBBBHBBBBVBBBBBBI
Of the four next following, the first two, French Merchandise and Manu-factures
of flax, were in a great degree freed from duty in 1832, silks and
linens being declared absolutely free. The duty was reimposed in 1841. The
others, Tea and Coffee, were free from duty in 1832, and so remain. The first
two are given chiefly for the purpose of showing how small is the increase of
consumption consequent upon a remission of duty, compared with that which,
in every case, we have seen to follow the production of a commodity at home.
French Merchandise, paid for
in cents per head of the popu-lation.
(See page 26.)
BBSBK
IHnBEBBIBr^lirBBHBHbBIBlB^finBII
iHMMBRBBHBAftfBBBBBBBBIBnKl
iNRlHiNHiaqBm
Manufactures of Flax, in °^i Average, ibbbbbi
cents per head of the popxda- ^fSlliillllilf
~
tion. (See page 26.) lo
Consumption of Tea, in hun-dredths
ofpounds per head of
the population. (See page
38 THE HARMONY OF INTERESTS.
n.
Consumption op Coffee, in i_
pounds per head of the popih-lation.
(See page 27.)
m. IV. V. VI.
HSiBnBBaiBBiBimiBBBiiBiRKnBiinriHaiK BBBBBBBBBBBflBHinBBBB
^BBBBBBBBBBBBBBr
dBBBBBBBfliBBRBBBBBBBBIWll
mBBBBBBBBIWHIBBBBI
fiHHaHMnHqwhBBHBIHBBBBSZIflKBBBK
aflSBBBl r~—
Revenue froini Customs, in
cents pel- head of tlie popula-tion.
(See page 28.) iaiiii{iii:3^^R.Biiii!
1—29 IboO —3i
50D
-41
1842
—45
184G
—49
*2»"«»»BHBHnHflH"!L.>eS'da'«1irft!JEMHiE^ r*
4C. maBBBHfliiWBflA«iE<SqHni!,BiB3ii
«E '^BBHBHBBIHBEIRB' HI* «XW JjlBltfM
I. 'l|ir%<4ai!«inBflBIIHB»bH«S9ft»«SerC
Public Expenditure, m mi7-
/ior(S of dollars. (See pago
30.)
Public Debt, in millions of
dollars. (See page 31.)
National Credit, in million
of dollars. (See page 31.)
S 220
210
jf^
^ JKSliislSfSJI
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;?;
fc;
ni!llfci£S " " -^
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iSBKaiJiSBa
40
p ,3
THE HARMONY OF INTERESTS. 4l
CHAPTER FOURTH,
now PROTECTION TENDS TO INCREASE PRODUCTION AND CONSUMPTION.
Two systems are before the world : on the oije hand, that which is de-nominated
protection, and on the other that which is denominated free-trade.
Each chiims to be t