It is, we trust, needless, to pursue the calculation prove their fabrics; and in the first year, having a surplus on hand, they export, we will suppose, any further. You can readily, fellow citizens, per400,000 yards of each kind to Spain. This opera-ceive that the contest must soon come to a close. tion produces the treble effect of lowering the price The Spanish manufacturers, oppressed, impoverishof the Spanish goods by the competition; circum-ed, and dispirited, would be soon driven from the scribing their sale; and depriving about 40,000 peo-market, which would be monopolized by the more sagacious nation, which, we repeat, had the good Their immense gains ple of employment. It being our determination to afford as little room sense to "regulate trade." for objection, as possible, we will suppose the re-would be at the expense, and to the destruction of duction of price to be only seven and a half per cent. the nation, which was deluded by the specious maxwhich is far less than is usually produced in such im, to "let trade regulate itself." The successful ricases, Let us see the situation of the parties at the vals would soon indemnify themselves for the tem porary reduction of price, by a proportionate adend of the first year. vance in future. The French manufac Enters gain in their domestic market, as before And on 400,000 yards of each kind sold in Spain, amounting to 2,000,000 dollars, at 6 per cent. dolls 3,250,000 130,000 dolls. 3,380,000 Whereas, the Spa cent. Let us compare the result of the four years' operations on the two nations:- France. Spain. First year's profit dulls.3.380,000 First years pro fit dolls. 1,170,000 3,510,000 Third year's 7,800,000 3,770,000 dolls. 40,400,000 Six hundred thousand people ing themselves in comfort and industriously employed,support happiness, and adding to the wealth and strength of the na This is the operation in the very first year, pro-Fourth year's profit ducing a difference at once of about 2,300,000 dol-Goods sold in Spain 10,300,000 lars of actual profit against the infatuated nation which allows "trade to regulate itself," and, according to Adam Smith, buys where "goods can be had the cheapest." The second year commences with increased energy on the part of the French, and dismay and discouragement on that of the Spanish manufacturers. The former double their exportations, and send 800,000 yards into the rival markets, amounting to $5,200,000, of which we trace the operation. French profit as be fore, on the home market Second year. dulls. 3,250,000 And an 800,000 yards of each kind sold in Spain, amounting to 4,800,000 dollars, at A per cent.. 260,000 Whereas the sales of cein. dolls. 1,040,000 The Spaniards find dolls. 3,640,000 French profit at home, as before dolls. 3,250,000 They increase their exportation to 1,600000 yards of each Kind, amounting to 10,400,000 dollars, st 5 per cent. affords a gain of 520,000 dolls. 3,770,000 dolls 910,000 The Spanish manufac turers are reduced 780,000 tion. es" which sound so harmonious- In the first year France sells to Spain A prosperous nation The result is easily seen. by this simple process is in four years reduced to a most abject, impoverished, and dependent state. Its wealth is drained away to support a foreign na*Instances have recently occurred of domestic tion. Every species of industry is paralized. Ships goods being reduced at once, ten, fifteen, and twen- rot at the wharves. Trade languishes. Merchants ty per cent. in our markets, in consequence of great and traders, as well as manufacturers, become bankquantities of similar articles suddenly introduced rupts. Artisans, mechanics and laboring people,' who had largely contributed to the welfare of the from Europe. this view of the effect of the rivalry has, we ap-state, are transformed into mendicants, or driven prebend, almost wholly escaped the notice of our to desperate courses to prolong their existence; and political economists. When the prices of our ma nufactures are reduced in the home market by foreign competition, the reduction is on the whole we fer for sale. Whereas the reduction to the rival nation is only on such part of her's as she exports to The contest is therefore carried on at an im We refer you, fellow citizens, to the plain, but impressive lesson afforded by the fable of the belly and the members. The latter starved the former to death-and perished victims of their own folly. We need not pursue it in detail. It is on the mind of almost every individual in the country, young and old. We cannot refrain from expressing our fears, that posterity will pronounce our policy to be a full exemplification of the soundness of its moral, and of our destitution of those broad and liberal views, that regard with “equal eye" all descriptions of society. desolation extends itself over the face of the land. I representatives, who are now themselves involved This, fellow citizens, is very nearly our present in the general distress resulting from the want of case. It is true, we have not absolutely let "rude that protection. regulate itself," by a total absence of all duties. The necessities of the treasury, which by many members of congress were freely admitted to be the leading, and by some to be the only object of a tariff, forbade the adoption of the maxim in its fullest extent: and therefore our imported merchandise pays duty. But it is obvious that where the tariff of one nation is so wholly inefficient, that she can be completely undersold in her own markets by another, as the people of the United States are at present, the ultimate effect is actually the same, as if "trade were allowed to regulate itself." The duties imposed by our tariff have merely delayed, not averted, the It will probably be objected by those whose inwork of destruction. But that it is as sure in its terests or prejudices enlist them in hostility to our operation, is placed beyond the reach of doubt, by views, that all we have here submitted to you, felthe desolation and ruin that pervade so many inva-low citizens, is merely theory; that however plauluable manufacturing establishments throughout sible, it cannot be relied on in the regulation of the the union, on which millions of dollars have been political economy of a great nation; that. Adam expended, and whose fall, as we have so often re- Smith being the oracie of that science, no theory peated, and must re-echo in the ears of those who opposed to his should be received, at least without alone have the power of applying a remedy, involv- the support of strong, and well established facts. ed the ruin of the citizens engaged in them. Well, we meet them, and are fairly at issue, on The most cursory reader must perceive, and no this ground-and are willing to stand or fall as we one possessed of candor can deny, that we have gi- furnish this support to our theory. We offer an ven the advocates of the maxim, "let trade regulate historical case which exemplifies the tremendous itself," far more advantage in the argument than consequences of a system exactly similar to ours in was necessary, or proper. When we stated the re-its features and operation-which blighted and duction of price at seven and a half per cent. and a blasted the happiness of a prosperous nation-and gradual increase of exportation from France to which pronounces an eternal sentence of condem Spain, of only ten per cent. of the amount original-nation on the theory of Adam Smith. ly manufactured there, we did our cause manifest In the year 1681 the Portuguese established the injustice. We might have assumed at once a re- woolen manufacture on an extensive scale, and by duction of price not of seven and a half per cent. absolute prohibitions, excluded the woolen cloths of but of ten or more-and an exportation of double all other nations.-In consequence they enjoyed 2 the amount, which, combined, would produce the high degree of prosperity for above twenty years, immediate ruin of the Spanish manufacturers, of and had the balance of trade in their favor univer whose fabrics a large proportion would remain on sally. Fatally for them, in 1703, the British minishand, and the residue be sold at or below cost.-ter, Mr. Methuen, induced them to enter into a This is and has ever been the uniform operation of treaty, called by his name, which stipulated that the the system of letting "trade regulate itse f.” king of Portugal should never prohibit British woolA physician who found his patient in a raging fe- en manufactures, provided port wines were admitver, and let the disorder take its course, or "regu-ted into Great Britain at two thirds of the duty paid late itself," would be deservedly reprobated as un- on those of France. The agriculturists of Portugal worthy of his profession. But his conduct would deluded themselves into the opinion, that they not be more irrational than that of a statesman, should derive a double benefit from this regulation; who saw the agriculture, manufactures, trade and secure a market for their wines, and buy their commerce of his country going to decay, and let cloths at reduced prices; that is, according to the them "regulate themselves." Government is institu- inaxim of Adam Smith, buy where "they could be ted to guard the interests of the nation confided to had the cheapest." But they were soon awakened its care: and by whatever name it may be called, is out of this "day dream." The flourishing manufac no longer estimable than as it fulfils this sacred ture was destroyed-the circulating medium of the duty. It was painful to us to state in a former ad- country drained away-and the nation precipitated dress-it is equally painful to us to repeat-but we from the most flourishing state of prosperity to that must repeat the appalling truth in the cars of the pitiable situation of poverty and debasement, which nation, that our manufacturers, a large and impor-holds her up to other nations as a beacon to shun the tant class, embracing some of the most valuable rocks whereon she shipwrecked her resources and members of the community, must, with mixed sen-her happiness, and on which our political bark is at sations of regret and envy, regard the situation of present striking with violence.* the manufacturers of France, Russia, Prussia, and most other countries in Europe, who enjoy that protection from despotic governments which the former sought in vain from their fellow-citizens and *We have already stated that col. John Taylor, a popular writer in Virginia, has taken the broad ground, that every dollar imposed as duty on foreign merchandise, is a dollar robbed out of the pockets of the agriculturists! This maxim, admirably calculated to excite the selfish passions of one class of citizens against another, has unfortunately had too nany proselytes in and out of congress. *These admonitory facts evince the unsoundness of the theory of col. Taylor, as well as of the mem bers of congress, who are his disciples and the zealous partizans of his doctrine. Regardless of the ruinous consequences to their fellow citizens who had embarked millions in manufacturing establish. ments, they fondly persuaded themselves that by reducing the duties as low as possible, consistently with the necessity of providing a revenue, which, we repeat, was their paramount object, they were consulting the interests of the agriculturists, who would thereby he enabled to purchase foreign mer The important lesson held out by this case of Por- "Our gain by the treaty, and so vast an enlargetugal-its close affinity to our situation-and the ment of our exporations to Portugal, is, that we hope of its eradicating prejudices destructive to the have saved vast sums of money, which otherwise strength, happiness and independence of our coun-might have gone out of the nation to pay our ar try, induce us to give our authorities at full length. mies in Portugal and other countries; and have greatThey are derived from two works of high charac-ly added to the treasure of the kingdom; that the ba ter, "the British Merchant," written by a society of lance annually due from Portugal has subsisted great the most eminent merchants in England, in the numbers of our people, employed in making manufacreign of queen Anne; and "Anderson on the means tures to the value of the balance. of exciting a spirit of National Industry." "The product of the lands is a considerable part of "In the year 1681, one Courteen, an Irishman, a every manufacture; the balance therefore due from Por servant in the family of the then queen of England,tugal has paid great sums for the product of our lands; afterwards queen dowager, carried over several and our rents are nothing else but the value paid for clothiers and bay-makers into Portugal, where they the product of the lands, and consequently all that part presently set up the manufactures, both of cloth of the Portugal balance which has been paid for the and bays, particularly at Port Alegre, and Covillhan. product of the lands, is so much added to the rents of the "It was soon found that the staple of their wool kingdom. Yet this is not the whole profit the landed inwas too short for bays; therefore their bay-makers were disinissed. "But they proceeded in the n.anufacture of cloth; and soon brought it to such perfection, that in 1684, either in June or July, upon the Conde d'Ereicera's project to increase their exportations, and lessen the consumption of foreign manufactures, as well as to encourage their own, the king of Portugal made a sumptuary law to restrain several excesses in the kingdom; and, among the rest, the importation of all foreign woolen cloths was prohibited, terests has received from this balance. The people that have been subsisted by that great over-balance of manufactures might otherwise have come very great numbers of them upon the parish; it is a gain to the landed interests to be saved from this charge, Our gain then by our Portugal treaty and our excess of exportations on that account, is a vast increase of the nation's treasure, the employment and subsistence of great numbers of manufacturing people, an augmentation of our rents, and the saving the landed interest from the charge of maintaining such numbers of poor, as have subsisted themselves by the excess of exportation."* "Upon this the foreign merchants in that country made several remonstrances; but could by no means "The stipulation of the king of Portugal in this obtain that the prohibition should be set aside: yet treaty, has helped us to so prodigious a vent for our they gained a year's time to bring in those that woolen manufactures in that county, as has abundantwere on the way, but were obliged to reship what-ly made up the loss of that balance we heretofore ever should arrive after the time limited. received from Spain." "The Portuguese soon became so expert in the manufacture of woolen cloths, that they sent home our English clothiers in a distressed condition, and the renegadoes were forced for some time to beg their bread."* Previous to the Methuen treaty, Portugal coins were so rare in England, that they were almost regarded as medals. Whereas, after that treaty had taken effect, there was an annual balance in favor of England, of one million sterling, or 4,444,000 dollars. "But the Portuguese went on successfully: their Portugal was drained, as the United States are now, manufacture of woolen cloths increased to that de-first of her silver, and then of her gold, so that she gree, that both Portugal and Brazil were wholly had "very little left for her necessary occasions." This supplied from their own fabrics; and the materials balance fully accounts for her impoverishment, and of this manufacture were their own and Spanish wool, and no other. at that period was an immense sum, as will appear from the circumstance that the whole of the ba To make ourselves some amends, and to evade lance of trade in favor of England with all the world the ill consequences of this prohibition of our wool was then only 1.2,000,000-and her whole exports en cloths, we introduced into Portugal in their only 1.7,000,000. In consequence of this new arstead cloth-serges and cloth-druggets; against rangement, the coins of Portugal flowed into Great which their fabric of cloth, which was then but in its Britain so abundantly, that they not only enabled infancy, would have been as unable to contend, as her to pay her armies abroad with them-but formagainst a free importation of our woolen cloths. There-ed a considerable portion of the circulating medium fore, that there own cloth might have no such thing as of the nation-and the chief part of the bullion melta rival in their own country, they proceeded to prohibited and coined in her mint. foreign cloth-serges and cloth-druggets. This hap- "During the twenty years prohibition, the Portu pened about one year after the first prohibition." guese succeeded so well in their woolen manufacchandise at low prices, and whose produce they be-tures, that we brought thence no gold or silver; but aflieved always certain of finding such an advantage-ter the taking off that prohibition, we brought away so ous market and high prices in Europe, that they much of their silver, as to leave them very little for their might disregard the home market! Fatal delusion! necessary occasions; and then we began to bring away Miserable anticipations! Narrow, mole-eyed policy! their gold." Utter disregard of the sound systems and experi"From that treaty's taking place, the balance of ence of all wise nations, and of the warning example trade began to take place: and the year 1703, was of all unwise ones! They are now broad awake the first year we began to bring off the silver of that from those deceptious "day dreams." Their flour, nation."|| excluded from the European markets, has fallen "The intent of the treaty was, to increase the from twenty to thirty per cent; their cotton has consumption of our woolen cloths in Portugal; and suffered an equal depreciation; and their tobacco has it not been increased by means of this treaty? become a worthless drug, which in the English markets will hardly command any price! If virtue in sures its own reward, illiberal policy never fails to carry its own punishment. *British Merchant, vol. iii. p. 70. †Idem, vol. iii. p. 71. *British Merchant, p. 254. Idem ii. p. 110. Idem ii. p. 35, had we any balance before from Portugal, and do we "Our exports to portugal since that treaty have continued two or three years more, they would pro- perity, and the rapid and lamentable downfall, of "The payment of our armies, the coinage in the mint, ing us to a similar state. Let these facts be care- ployed-her staples of immense value-But good heavens! what a deplorable contrast she exhibits at present! who can reflect on it without agony! Her character impaired by the impracticability of payIt may, perhaps, be supposed that the total de- daily swallowed up in bankruptcy--her manufactures struction of this flourishing manufacture, could not prostrate-thousands and tens of thousands of her ing her debts-her merchants, one after another, have taken place so rapidly unless the English wool-people unemployed-her staples sunk in value proen fabrics were admitted duty free. This would be bably more than 20,000,000 dollars per annum-and an egregious error. thuen treaty was, that they should not be prohibited, work consisted of twenty volumes instead of twoThe stipulation of the Me- no prospect of relief at hand. If Adam Smith's nor be subject to a higher duty than before the pro- and if the commentaries on it had extended to one hibition had taken place. This was twenty three hundred, were the whole thrown into one scale, and per cent. which, like so many of the duties in the this simple statement in the other, the former would United States, was found utterly inadequate to pre- kick the beam. serve the manufacture from destruction. "The duties of importation, before the prohibi- for our common country-by the duty you owe your tions, had the name of twenty three per cent. We conjure you, fellow citizens, by your regard the goods were undervalued; those duties of twenty-mory of your Washington, Franklin, Hancock, and three per cent. were not above twelve per cent. of their Adams--by the desire you must feel to arrest the But selves, your wives and your children-by the mereal value. To such low duties has the king of Por-progress of the depreciation of the grand staples of tugal obliged himself with respect to the several your agriculture, as well as the destruction of your sorts of woolen manufactures, which stood before manufactures, trade and commerce-all victims of prohibited in that country."ff We invite your attention, fellow citizens, to the you to make a good use of the immense advantages striking similarity between the case of Portugal, as you possess-by that liberty on which you so justa pernicious policy; by the claim posterity has ou stated above, and that of the United States. In this ly pride yourselves, but which loses its value, if accountry, the woolen manufacture and that of cot-companied by beggary and ruin-in a word, by all ton were established and rose to maturity dur- you hold near or dear on earth-weigh well the ing the three years of warfare: and had the war subject of this address. Examine it in all its bear*British Merchant, p. 33. †Idem 253. #Idem 20. §Idem 257. Anderson on National Industry, p. 267. **British Merchant, i. p. 76, ings and aspects. And should it satisfactorily es- the distresses of the nation- and to save from the vortex of bankruptcy those who have escaped the ravages of the storm which threatens to blast all our hopes of happiness, and to reduce us to the same state of prostration and decriptitude as Spain and Portugal, who, it is unfortunately true, have not made a worse use of the bounties of heaven than the United States! The immense importance of the case of Portugal, induces us to place before the eyes of our fellow citizens two comparisons of her conduct with oursin the one, the soundness of her policy places us in the back ground an entire century in point of political wisdom-in the other, her impolicy and her consequent sufferings and distress are the counterpart of the system we have pursued, and the calamities under which we writhe. Striking contrast. PORTUGAL. "The Portuguese set up a fa brie of their own, and proceeded in it with very good success, af. ter the prohibition of ours and all foreign coloured cloth. We had then nothing left against their cloths, but to introduce our cloth serges and cloth druggets, into that country. They quickly found that these gave some in. terruption to their manufac tares, and therefore they pro arded also to prohibit foreign arge and drugges." THE UNITED STATES. and utterly inadequate protec- Striking likeness. PORTUGAL. "Before the treaty our woolcloths, cloth serges, and cloth druggets were prohibited in Porngal. They Trad set up fabrics there for making cloth, and proceeded with very good success: and we might justly apprehend they would have gone on to erect other fabrics, till at last they had served themselves with every species of woolen aianu factures. The treaty takes off all prohibitions, and obliges Por tugal to admit forever all our voulen manufactures, It is hardly necessary to examine the effects on The following picture of the state of the western "Never within the recollection of our oldest citi- THE UNITED STATES. During the war, cotton, wool en, and other kinds of goods were not prohibited-but there were few imported. The citi zens of the United States set up fabrics for making cloth, both woolen and cotton, and, had the war continued, or had they received protection after it was concluded, they would have gone on to erect other fabrics, There was a talk of the bank of England resumtill they had served themselves with every species of manufacing specie payments after a while. A bank at ture. The treaty of peace openTheir ed our ports to foreign mer-Sheerness has stopped payment of even in paper. The manufacturing districts are dreadfully dischandise, under duties utterly for protection, tressed. At Leicester, within 10 days, it is said inadequate whereby a large portion of our fabrics were wholly ruined-and, that 5000 persons were thrown out of employ→→ probably within a year after the though the price of cotton was expected to decline furThere have been some heavy failures. ther! The London newspapers advertise no less than fully intreated for adequate pro fifteen ships to take out passengers to America, tection, when the war was clos- whose tonnage amount to 8200 tons; and the Belfast ed. They refused it-and distress and ruin of the manutae-papers nearly as many more.-By the returns of the tures and the impoverishment of latter port, it appears that about 11,000 persons emigrated to America from thence last season, amongst whom were upwards of seven hundred fami Foreign Articles. GREAT BRITAIN AND IRELAND. Parliament adjourned on the 8th April, for a fort- jabrice by this were present ig ruined. And we exported 100,000 value in the single ar title of cloths, the very year af ter the treaty." "The court wens pestered with remonstrances from their manu facturers when the prohibition was taken off, pursuant to Mr. Methuen a treaty. But the thing war 25,000,000 dollars of cottons Congress was most respect was past. The treaty was rati- The balance of trade is so British Merchant, vol. iii. p. 35. lies. The Circassian girl which the Persian ambassador was bringing as a present to the prince regent, was very closely guarded. What will the prince do with her? Can he keep her as a slave? London, April 10. Numerous emigrations are now taking place from Yorkshire, chiefly for the U. States-but a considerable number have also recent. ly gone to South America, and many others are preparing to follow them. The mischief of these expatriations is increased by the emigrations allud. ed to, being not composed merely of poor distressed artisans, who are in quest of food and employment, but chiefly of persons possessed of property, sufficient to render them comfortable in their own country. |