The restoration of peace, however, as might have been naturally expected, greatly affected our commerce, particularly the carrying trade, of which the war had given us an inordinate share. An immense capital, invested in commerce, was thus rendered wholly unproductive, and, had manufactures been encouraged, as sound policy dictated, hundreds of our merchants, whose property has since wasted away, and who have been swallowed up in the vortex of bankruptcy, would, as was the case during the war, have transferred their talents, their industry, and their capital to that department, to the advancement of their own interest and the general welfare; instead of a vain struggle in a branch which was so crowded, that it could not afford support to more than half the persons engaged in it. Those that remained in the mercantile profession, after such a transfer of a portion of its members to profitable employment of another description, might and probably would have prospered. And thus it is as clear as the noonday sun, that an efficient protection of manufactures would have been highly advantageous to the merchants; although many of them, from taking a superficial view of the subject, have been under an opposite impression, and have unfortunately been hostile to such protection.

The advocates of the system of Adam Smith ought to be satisfied with the fatal experiment we have made of it. It is true, the demands of the treasury have not allowed us to proceed its full length, and to discard import duties altogether. But if our manufactures are paralized, our manufacturers ruined, and our country almost wholly drained of its metallic medium, to pay for foreign merchandize, notwithstanding the duties imposed for the purpose of revenue, it is perfectly reasonable to conclude, that the destruction would have been more rapid and complete, had those duties not existed. This we hope will be regarded as decisive; for if our woollen manufacture, for instance, protected, as it is termed, by a duty of 27 1-2 per cent., has been more than one half destroyed, so that it was no longer an object to preserve the invaluable breed of Merino sheep, in which millions of dollars were invested, and of which the greater part have been destroyed, to the ruin of the proprietors, it cannot be doubted that without such duty, it would have been at once wholly annihilated, as our citizens would in that event have been utterly unable to maintain a struggle against foreign rivals. If argument were of

avail against the dazzling authority of great names, ane against ingrained, inveterate prejudice, this case would settle the question for ever. Where are now, we ask, the "collateral branches," to which the thousands of our artists, mechanics, and manufacturers, "thrown out of their ordinary employment, and common method of subsistence," can "easily transfer their industry,"* as Dr. Smith asserts?· Another part of Dr. mith's theory, is, that when a particular branch of industry is destroyed by "the home market being suddenly laid open to the competition of foreigners" "the stock will still remain in the country, to employ an equal number of people in some other way." And therefore" the capital of the country remaining the same, the demand for labour will still be the same, thuogh it may be exerted in different places, and for different occupations."+ These maxims are now fairly tested in the United States, as they have been for centuries in Spain. The cotton, woollen, pottery, glass, and various other manufactures, have been in a great measure suspended in the middle states, by "the home market being suddenly laid open to the competition of foreigners" at the close of the war. Is there a man who will venture to assert, that "the demand for labour is the same?" that " the stock remains the same?" or that it" employs an equal number of people in some other way?" We flatter ourselves that the most decided advocate of the doctor's system will admit, on calm reflection, that these maxims are utterly destitute of even the shadow of foundation.

We urge this point on the most sober and serious reflection of our fellow-citizens. It is a vital one, on which the destinies of this nation depend. The freedom of commerce, wholly unrestrained by protecting duties and prohibitions, is the keystone of the so much extolled system of the doctor, which, though discarded, as we have stated, in almost every country in Europe, has, among our most enlightened citizens, numbers of ardent, zealous, and enthusiastic admirers. We have essayed it as far as our debt and the support of our government would permit. We have discarded prohibitions; and on the most important manufactured articles, wholly prohibited in some countries, and burdened with heavy prohibitory duties in others, our duties are comparatively low, so as to afford no effectual protection

* Wealth of Nations, 1. 329-30.

+ Ibid.

to the domestic manufacturer. The fatal result is before the world-and in every part of the union is strikingly perceptible. In addition to the example of Spain and Portugal, it holds out an awful beacon against the adoption of theories, which, however splendid and captivating on paper, are fraught with ruin when carried into practice.

This is the basis on which Adam Smith's system rests, and being thus proved radically and incurably unsound, the whole fabric must crumble to ruins.

There is one point of view in which if this subject be considered, the egregious errors of our system will be manifest beyond contradiction. The policy we have pursued renders us dependent for our prosperity on the miseries and misfortunes of our fellow-creatures! Wars and famines in Europe are the keystone on which we erect the edifice of our good fortune! The greater the extent of war, and the more dreadful the ravages of famine, in that quarter, the more prosperous we become! Peace and abundant crops there undermine our welfare! The misery of Europe ensures our prosperity-its happiness promotes our decay and prostration!! What an appalling idea! Who can reflect without regret on a system built upon such a wretched foundation!

What a contrast between this system and the one laid down with such ability by Alexander Hamilton, which we advocate. Light and darkness are not more opposite to each other. His admirable system would render our pros perity and happiness dependent wholly on ourselves. We should have no cause to wish for the misery of our fellow men, in order to save us from the distress and embarrassment which at present pervades the nation. Our wants from Europe would, by the adoption of it, be circumscribed within narrower limits, and our surplus raw materials be amply adequate to procure the necessary supplies.

Submitting these important subjects to an enlightened community, and hoping they will experience a calm and unbiassed consideration, we ardently pray for such a result as may tend to promote and perpetuate the honour, the happiness, and the real independence of our common country.

We conclude with submitting to the legislature of the United States, on whose decision depends the perpetuation of existing distress, or the restoration of the country,

to that high grade of prosperity from which a false policy has precipitated her, the following luminous maxims; viz.

"The uniform appearance of an abundance of specie, as the concomitant of a flourishing state of manufactures, and of the reverse where they do not prevail, afford a strong presumption of their favourable operation on the wealth of a country.*

"Considering a monopoly of the domestic market to its own manufacturers, as the reigning policy of manufacturing nations, a similar policy, on the part of the United States, in every proper instance, is dictated, it might almost be said, by the principles of distributive justice; certainly by the duty of endeavouring to secure their own citizens a reciprocity of advantages."+

"The United States cannot exchange with Europe on equal terms."+

"That trade is eminently bad which supplies the same goods as we manufacture ourselves; especially, if we can make enough for our own consumption.§"

* Hamilton's Works, vol. I p. 217.

Idem, 186.

† Idem, p. 225.

{ British Merchant, vol. I. p. 4.

ADDRESSES

OF THE

PHILADELPHIA SOCIETY, &c.

NO. I.

Philadelphia, March 27, 1819.

FRIENDS AND FELLOW CITIZENS,

THE Philadelphia Society for the Promotion of National Industry, respectfully solicit your attention to a few brief essays on topics of vital importance to your country, yourselves, and your posterity. They shall be addressed to your reason and understanding, without any attempt to bias your feelings by declamation.

Political economy shall be the subject of these essays. In its broad and liberal sense, it may be fairly styled the science of promoting human happiness; than which a more noble subject cannot occupy the attention of men endowed with enlarged minds, or inspired by public spirit.

It is to be regretted that this sublime science has not had adequate attention bestowed on it in this country. And unfortunately, so many contradictory systems are in existence, that statesmen and legislators, disposed to discharge their duty conscientiously, and for that purpose to study the subject, are liable to be confused and distracted by the unceasing discordance in the views of the writers.

It is happily, nevertheless, true, that its leading principles, which safely conduct to the important and beneficent results, that are its ultimate object, are plain and clear; and, to be distinctly comprehended, and faithfully carried into effect, require no higher endowments than good sound sense and rectitude of intention.

It is a melancholy feature in human affairs, that impru dence and error often produce as copious a harvest of wretchedness as absolute wickedness. Hence arises the imperious necessity, in a country where so many of our

B