H. OF R. The Tariff Bill. [JAN. 21, 1833. question; yet there must be some limit to the debate. and skill, not only to stand under this bill, but to realize Surely after the dozen speeches which have followed greater rates of profit upon the capital and labor emeach other in regular succession, in opposition to this bill, ployed, than is derived from any other regular business if the object be not to defeat, by delay, any final action in the country. upon it, gentlemen will permit us to consider and vote The proof which I adduce, and to which I now ask upon its details. All the gentlemen who have addressed the attention of the House, is the testimony of the manuthe House in opposition to the measure, are of the ultra facturers themselves, collected by the Secretary of the high tariff portion of the House. They have dealt alto- Treasury during the last year, in obedience to a resolugether in generals. No one of them has taken a practical tion of this House, a part of which has been printed by view of the operation and effects of the measure itself. the order of this House, and a part is yet in manuscript, They seem to have been desirous to provoke debate from Of that portion which has not been printed, I have pro. the friends of the bill. The committee have been cen- cured some of the original statements, and will read from sured for their silence. The measure which they have them to the House. From this testimony of the manu recommended to the favor of the House has been charg- facturers--the persons of all others the best informed and ed to be indefensible. It has been said to be a measure most interested, so far as the measure before us is sup at once destructive of the whole manufacturing interests posed to operate injuriously upon their peculiar interests of the country; that ruin and desolation awaited the ma--I shall expect to establish, beyond the possibility of a nufacturers if the bill on your table became a law. All doubt this we have heard, and yet no opportunity has been af- 1st. That the profits received by the manufacturers, forded to us, by an examination of the bill itself, and by in well conducted establishments, far exceed the profits facts and proofs in our possession, to show that no such upon the labor and capital employed in any other regular consequences will follow. I rise, sir, now, not to aban- business. 3d. That the manufactures of the United States were in a prosperous condition, under the act of 1816, and be tween the years 1816 and 1824; and that the duties imposed by the act of 1816 afforded sufficient protection. 4th. That the bill, which assumes the act of 1816 as general basis, affords in fact greater protection than did the act of 1816. don the grounds we have taken. I will not be provoked, 2d. The opinions of distinguished manufacturers as to by any thing that can be said, into the general discussion the rates of duty which will protect them against foreign of constitutional law, of protection, of free trade, or of competition, and as to the reductions which they can bear, nullification; nor shall the taunting allusions which have and still realize a fair profit. been made to the different characters of the free labor of the North, and the slave labor of the South, draw me into the discussion of these abstract or exciting topics. I rise, sir, to show, not by arguments of my own, but by what must be much more satisfactory to the House, by facts the most conclusive, by the testimony of the manufacturers themselves, that the bill upon your table will produce no such effects as gentlemen roundly assert Upon the point of profits, I call the attention of the it will. Doubtless gentlemen may believe the declara- House particularly to the manufacture of woollens and tions which they make; but they are mistaken, if the ma-cottons, for these are the interests supposed to be more nufacturers testify truly, or if the facts which they state seriously affected by this bill, than any other. And, first, are worthy of belief. it is to be observed that many of the manufacturers de a Permit me to remark, before I adduce the testimony to cline or refuse to respond to the interrogatories prowhich I allude, that in framing this bill the committee saw pounded by the Secretary of the Treasury, in regard to the great fact staring them in the face, that the present their profits, thereby leaving the inference most strongly rates of import duty would yield to the treasury an ex- to be drawn, that they may have been unwilling to make cess of six millions of dollars annually, over what will be a full exposé, lest it might be seen that they could well required, in subsequent years, to meet all the necessary bear a modification of duties, and still realize a fair profit. and proper expenditures of the Government. The Pre- In confirmation of this, at page eighty-five of the printed sident, in his annual message, had recommended a repeal testimony, Mr. Edward Walcott, an agent appointed by of the public burdens to this amount. The Secretary of the Treasury to collect and report the information de the Treasury had also recommended it. The necessity sired, in regard to the profits and condition of the manuof the reduction seemed to be conceded by all; and, in- factories at Pawtucket, states that "many of our manudeed, in all the speeches we have heard, it has not been facturers have been reluctant to answer some of the quescontroverted. In preparing the bill which they have of- tions propounded, not wishing to hazard an opinion upon fered, the committee had two objects in view. First, to a subject they have not viewed in all its bearings." This reduce the taxes to the standard of revenue which the is perhaps natural enough. At page one hundred and Government required, thereby relieving the people of so thirty-four of the same document, an agent in Massachu much of the public burdens as were no longer needed setts states, in relation to the interrogatories propounded for the public service; but in doing this they kept an eye, as to profits, that "no definite answer has been given to secondly, to the probable effects of the measure upon this by a single manufacturer; they have generally dethe existing manufacturing establishments which had clined, or said, we make little or nothing." The same grown up under the existing policy. No member of the thing is stated at pages one hundred and thirty-six, one committee who yielded his assent to this bill, I may safely hundred and forty-six, and one hundred and fifty, of this affirm, desired to prostrate the manufactories, nor will document. Others, however, of the manufacturers, have such, in their judgment, be the effect of the bill. The stated their profits. The first that I present is an abchairman of the committee, as their organ, in bringing the stract of the state and condition of the manufactories in measure before the House, confined himself to a brief, the State of Vermont, reported to the Secretary of the but very satisfactory exposition of its provisions-as a Treasury on the 4th of May last, by Mr. B. F. Bailey, an measure of finance. The duty has been devolved upon agent appointed to collect the testimony, and known, I me to show its effects upon the manufacturing interests of presume, to some of the delegation from that State. From the country. This I shall do, not by general declamation, this abstract, it appears that a woollen factory, owned by but by the testimony of the manufacturers themselves; Moulton and Cummings, with a capital of $22,000, conand I venture to affirm that the bill, so far from prostrat- sisting of real estate, machinery, and active capital, makes ing these establishments, affords sufficient incidental pro- a profit of forty per cent. A woollen factory, owned by tection to enable all such as are based on real, not J. Downs, with a capital of $60,000, makes a profit of borrowed capital, and which are conducted with economy fifteen per cent. A woollen factory, owned by N. B. JAN. 21, 1833.] The Tariff Bill. [H. OF R. Hazen, with a capital of $28,576, makes a profit of twelve accompanying this; but the directors of the Gardiner fac per cent. Two other woollen factories, with capitals of tory declined answering any of them, although twice about $10,000 each, the one owned by Sturdevant, and called upon by me, and once written to on the subject. the other by Gookin, each make a profit of thirty-three I however found, by inquiry, that their operations are per cent. From the same abstract, it appears that a cot- about one-third more than those at Winthrop, and, owing ton factory, owned by I. Lyman, with a capital of $55,000, to a favorable location and other facilities for carrying on realizes a profit of twenty-one per cent.; and in this case their business, their profits must have been, during the we meet with a candid admission, as appears from the year ending September last, fully twenty-five per cent." statement before me, that "reduction" of duties would The same agent, in his report, states that "the impression "not be injurious" to the establishment. The following among intelligent gentlemen with whom I have conversed interrogatory, among others, was propounded by the Se- is, that the duty upon woollens and cottons might be adcretary of the Treasury, to wit: "If the duty upon the vantageously reduced, and the factories still be able to foreign manufacture, of the kind of goods which you carry on their business at a rate of profit considerably make, were reduced to twelve and a half per cent., with above what is realized in other branches of business." a corresponding reduction on all the imports, would it The agent at Portland, Maine, at page 1 of the printed cause you to abandon your business, or would you conti-document, states, that "cotton factories at the present nue to manufacture at reduced prices"" The answer time are very profitable; but it is expected, from the is, "reduction not injurious." The iron foundries and great number building, that much competition will ensue, forges in this State are shown, by the abstract before me, and profits will be lessened." "In the manufacture of to be in a highly prosperous condition, yielding, in one wool we have made less advance; but it is thought a coninstance, a profit of fifty-four per cent., and in many siderable reduction may take place, and the business still other establishments, profits of from twenty to forty per continue profitable." The value of "manufacturing cent. But as it seems to be conceded by the iron mas- stocks," in well conducted establishments, affords conters themselves, as well as by the advocates of the restric-clusive evidence of the enormous profits which they retive policy on this floor, that this interest is amply pro-alize. The agent at Pawtucket, in his report, at page 85 tected by the bill, I shall make no more particular refer- of the printed document, states that he believes "there ence to the proofs of profits in relation to this interest, has been more money made by speculators in manufactur contained in the paper before me. I hold the proof in ing stocks than by the operations of machinery; and the my hand. It is open to the inspection of any gentleman safest and most profitable operations have been made by who desires to look into it. The truth is, that the cost of sales of stock in manufacturing corporations at an advance transportation alone, in regard to all the iron establish- of from ten to fifty per cent. from the original cost." At ments situated in the interior, is ample protection. With-page 172 of the printed document, it appears that an exin a given circle around them, the cost of transportation tensive cotton factory in Massachusetts, with a capital exexcludes the foreign article altogether; and no rates of ceeding $100,000, yielded an average profit of ten and a duty, whether high or low, could materially affect them. half per cent. for ten years, from 1819 to 1828 inclusive; It is upon the seaboard, and in that portion of the interior" that a profit of fifteen per cent. was realized in 1823;" connected with the Atlantic by cheap water communica- that "the business afforded a profit of twenty per cent. tion, that any competition is met from the foreign article. in 1830, and the following year, 1831, an unusual profit The other manufactories, in the State of Vermont, as well was realized, say twenty-five per cent." At page 196 as in other portions of the Union, are suffered to remain of the printed document, it is stated that, since 1821, the at the rates of duty imposed by the act of 1816, which do business has "afforded a handsome profit." not materially vary from the present rates. The tanne- In the State of Pennsylvania, the manufacture of woolries, the saddleries, the manufacture of hats, of boots and lens and cottons is not very extensive. In document No. shoes, and, in a word, the mechanic trades generally, are 158, returned by the agent, from that State, and now be left in a prosperous condition, yielding, as the proof fore me in manuscript, it appears that the woollen and shows, handsome, and in most cases large profits. There cotton factory in Beaver county, Pennsylvania, owned by are, I believe, no apprehensions that they will not be ade- the" Harmonie Society," with a capital, fixed and acquately protected by the bill. These remarks, in relative, of $35,000 in the "cotton line" per annum, and tion to these different kinds of manufactories, as well as $62,000 in the "woollen line" per annum, yielded for to iron, sustained as they are, not only by the testimony the five years ending with 1831 the following profits, viz. taken in the State of Vermont, but confirmed by the testimony taken in several other States, with which I will not now trouble the House, abundantly show that these various interests are sufficiently protected, and will not be injuriously affected by this bill. Profits in the cotton business. 8 1830, Woollen business. 14 per cent. 15 16 18 14 In regard to the great interests of woollens and cottons, in which so vast an amount of capital has been embarked, In the smaller factories engaged in the manufacture of I beg leave to adduce further proofs, taken in different woollens in that State, it appears, from the returns of the States of the Union. In the printed document, No. 308, agents, that the several establishments, as shown by the containing the testimony taken in the States of Maine and manuscript documents before me, numbered 135, 136, Massachusetts, to which I have already referred, at page 139, 143, 149, severally yield a profit of twenty per cent. 22, the agent states that "satinet factories, properly per annum. The manuscript documents numbered 134, conducted, will yield from fifteen to twenty per cent." 138, 140, show an annual profit of twenty-five per cent. The agent at Augusta, in the State of Maine, at page 1 of on the capital invested; and the documents numbered the printed document, in his report to the Secretary of 104 and 105 show an annual profit of thirty-three per the Treasury, states: "It is well known that Maine has not many large manufacturing establishments of any kind. In that portion of the State which I visited or examined, I found but two cotton factories, one at Winthrop, in the county of Kennebeck, and the other at Gardiner, in the same county. The agent of the former very readily answered all the inquiries put to him, within his power to answer; the result of which will be found on sheet No. 1, cent. on the capital invested. The documents showing these large rates of profit, are here, and any gentleman who will look into them will find these statements to be correct. In addition to this, it appears that all the fulling mills and small establishments doing custom work, and finding their market in their immediate vicinity, are exceedingly profitable, and could be but little if at all af. [fected by a reduction of the duties. To this body of tes H. OF R.] The Tariff Bill. [JAN. 21, 1833. timony in relation to profits, I have only to add the testi- of the duties on the rival foreign article which they can mony of a single other manufacturer, which struck me, bear, and still pursue their business, realizing fair profits. when I first read it, with great force. It is to be found The first testimony which I adduce upon this point, is that in document No. 47, from the State of New York. of Mr. Peter H. Schenck, of the State of New York, to Among other interrogatories propounded by the Secre- be found in document No. 21. Mr. Schenck is extentary of the Treasury, in his circular addressed to the ma-sively engaged in the manufacture of broadcloths and nufacturers during the last year, was the following: "Is other woollen goods. He is personally known to many there any pursuit in which you could engage, from which members of this body, and perhaps by reputation to all. you could derive greater profits, even after the reduction The Secretary of the Treasury propounded, among other of the import duties to twelve and a half per cent?" interrogatories to the manufacturers, the following: This manufacturer, as appears from the document now "What rate of duty is necessary to enable the manufacbefore me, answers the interrogatory as follows: "No- turer to enter into competition in the home market with thing more advantageous than shaving with the many." similar articles imported?"" To this Mr. Schenck answers The manuscript returns of the agents for the State of in the following words: "Having all the materials at as New York, which I have also before me, show rates of low a rate as the foreigner, twenty-five per cent. duty on profits in the woollen and cotton business not materially the imported article will be a protection, if the duty is varying from those already stated in the State of Pennsyl- fully collected, not as heretofore, (scarcely the half of vania. Here are the returns; any gentleman who desires it.") To the same question, Messrs. 1. & 1. Wadsworth, it, can examine them for himself. These proofs and manufacturers of woollens, in the State of New York, (as statements furnished by the manufacturers themselves, may be seen in document No. 23,) answer: "Twentythe persons of all others the most interested, and possess- five per cent., was the duty on wool to be reduced in proing certainly the best information upon the subject, ac- portion, and the value of the imported article to be fixed cord but badly with the general declarations which we here." Messrs. Bour & Kirk, manufacturers of woollens, have heard so often repeated in the course of this debate, in the State of New York, answer the same interrogatory as to the depressed condition of the manufactures, and as follows, (document No. 22:) "Twenty-five per cent. especially of the manufactures of woollens and cottons, on the goods valued in this country; then there will be no and of the apprehended ruin and desolation which awaits need of false invoices and false oaths." In document No. them if this bill should pass. I take this testimony of the 30, the same interrogatory is answered by a manufacturer manufacturers as most strongly against the gentlemen op- of woollens, in New York, as follows, to wit: "Cannot posed to this bill, upon the point at issue. I do so upon say; but the rate of duty is, perhaps, not so essential as a well-settled principle of evidence in all judicial proceed- that it should be strictly collected upon all the goods enings, that admissions of a party interested against his in- tered, as fraudulent entries keep the market constantly terest furnish the most conclusive and incontrovertible in an unsettled state, and the manufacturer is left in unproof. certainty whether he is to make or lose money by his I am willing to admit that I have selected from this operations." I shall only detain the House upon this body of evidence the proofs which I have adduced, and point by adducing the testimony of a single manufacturer to concede that, from these voluminous documents, it does of cottons, (to be found in document No. 3,) in the State appear that some other establishments, and especially of New York. In answer to the interrogatory of the Sethose having very large capitals, have not yielded such cretary of the Treasury: "If the duty upon the foreign large profits, and that some even have been ruinous con- manufacture, of the kind of goods which you make, were cerns; but this does not weaken or impair the positive reduced to twelve and a half per cent. would it cause you affirmative testimony which has been adduced. If one to abandon your business, or would you manufacture at manufacturer, with skill, vigilance, and economy, can reduced prices?" The manufacturer answers that he realize a given rate of profit in his business, there is" should continue the business at twelve and a half per no reason why another, in similar circumstances, may not cent." do so. In all the establishments where there is the re- It appears from this testimony that the duties upon quisite skill in the business, a real, and not a borrowed woollens (now fifty per cent.) may not only be reduced, capital, and wherever the latest improvements in labor- but that twenty-five per cent. will be a sufficient protecsaving machinery are introduced, and proper economy tion, provided there be a corresponding reduction on the and attention given to the business, large profits have raw material, and the duty be fully and fairly collected; been realized. But wherever there is a want of skill in and that the manufacturers of cottons, and especially of the business, wherever it is based upon a fictitious capital coarse cottons, would be able to continue their business borrowed from banks or individuals, or wherever there profitably at the reduced duty of twelve and a half per is a want of economy or proper attention to the business, cent. on the rival foreign article. Now, sir, this bill proit cannot be expected to be otherwise than calamitous poses not only a corresponding reduction upon raw wool, In some establishments too, large and even ruinous losses but makes free of duty many of the raw materials heretohave been sustained in consequence of bad debts, or by fore paying heavy duties, and which are of indispensable fire or floods. Against these, were the duties prohibitory, necessity in the manufacture of woollens. For instance, no legislation can afford protection. They can only be the article of indigo, paying a duty of fifty per cent. unguarded against by the vigilance and attention of the own-der the tariff of 1828, is, by the bill, made free of duty. The general proposition which I affirm to be esta- The various dye-woods are made free of duty by the act blished by the whole body of this testimony is, that in all of 1832. Olive oil, upon which the duty is reduced from those establishments, where there is skill, real capital, twenty-five to ten cents the gallon (more than half) by improved machinery, and proper economy and vigilance this bill. The extent of the gain to the manufacturer, in their management, they have proved to be more pro- by the reduction of duty upon the raw material used by fitable than any other regular and steady business. him, will be more particularly stated when I come to adduce the testimony upon another branch of this subject. In confirmation of these opinions, and in support of the general proposition that the woollen and cotton manufac tures can bear a considerable reduction of the present rate of duties upon the foreign rival article, and still be able to continue their business with fair profits, and without being seriously affected by the reduction, I beg ers. Having now produced the testimony of the manufacturers in relation to the profits realized in many well-conducted establishments, and shown, I trust satisfactorily, to the House, that these rates exceed the rewards of labor and capital employed in any other regular business, I call the attention of the House next to the testimony and opinions of distinguished manufacturers as to the reduction JAN. 21, 1833.] The Tariff Bill. (H. OF R. leave to read an extract or two from the report of the apportioning such temporary loss among the foreign maagent appointed by the Secretary of the Treasury to col-nufacturers in proportion to their ultimate gain, is so great lect and report the testimony in relation to the condition as to afford effectual security against this evil." There of the various kinds of manufactures in the State of New is another objection (which we have often heard upon this York. The report from which I read, bears date on floor) stated, and very satisfactorily answered in this rethe 17th of April, 1832. The agent states that "the port. It is this: "The apprehension in which so many of woollen would appear more likely to be benefited by a the cotton manufacturers concur, that a foreign article, reduction of the duties upon all the imports than any other equal in appearance but inferior in quality to theirs, branch of manufacture, because wool pays not only a spe- might compete successfully with theirs, appears to me" cific duty, relatively high as the prime cost is low, but [says the agent] "quite groundless. Such an article also a high ad valorem duty; and also because oil and other would, in my opinion, find its market value controlled by articles which enter into this manufacture, pay a duty ex-quality." An argument was stated in the committee ceeding the proposed limitation." The limitation here which reported this bill, against the reduction of duty on alluded to is a uniform ad valorem duty of twelve and a cottons to the extent proposed in the bill, though it was half per cent. on all imports. The report proceeds: admitted that they could bear some reduction. It was this: "The woollen manufacture would, therefore, seem bet. It was said that there was a kind of cotton, grown in the ter able to bear a reduction of duty on the imported rival East Indies, inferior in quality to the American cottons, articles, with such a corresponding reduction on other im- which was sold in the English markets at a cent and a ports as is proposed, than either iron or cotton, except- half in the pound less than the American cottons, and that, ing coarse cottons, on which the duty is considered merely in consequence of this, coarse cottons could be manufacnoininal. Mr. Dexter, an experienced woollen manufactured for less abroad than here, where the American turer, concurs in the opinion that a reduction might be cottons were exclusively used. The objection was bemade on imported woollens, if the duties on wool and other lieved to have nothing in it, for many of the coarser cotton materials used in the manufacture were also reduced." goods in this country are made of the stained or inferior With a view to show the general effects of a reduction of cotton, worth less in our own, as well as in foreign marduties upon all imports, I read also the following extracts kets, than our prime uplands. But, to remove the from this report, to wit: "With regard to the reduction objection, if there was any thing in it, a provision was of duties upon that class of imports referred to as falling inserted in the bill removing the present duty on cotton upon all in proportion to numbers, as teas, sugar, coffee, imported into the United States, and permitting it to come articles of clothing, and every thing coming under the in free of duty. Our cotton planters have never regarddenomination of necessaries or comforts, within the reach cd the duty on raw cotton as of any consequence. They of the laboring classes, the iron manufacture would be wish an open and unrestricted market for their crops, benefited to a higher degree than cotton and woollen, and if they have this they are able to compete with the because manual labor is employed to a greater extent in world either in the home or the foreign market. the former, and machinery to a greater extent in the two I propose next to establish, by testimony equally enti latter." And, again: "How far a reduction of duty on tled to credit, the third proposition, which is, that the all imports to twelve and a half per cent, would affect manufactures of the United States were in a prosperous the cotton, iron, and woollen manufactures, by affording condition under the act of 1816, and for the eight years articles of consumption at a lower price, is a question of intervening between the years 1816 and 1824, and also extreme difficulty. Nothing but experience can satisfac- that the act of 1816 afforded them ample incidental protorily determine it; but, in the present condition of the tection. To establish this proposition, I call the attention woollen manufacture, there is reason to believe that it of the House to the testimony of the manufacturers, taken would be the first and severest sufferer, notwithstanding under oath before a committee of this House in 1828, a reduction of duty on the raw material; and there is equal preceding the passage of the tariff act of that year. Genreason to believe that the cotton manufacture would suf- tlemen may find this testimony in the second volume of fer less than any other." In regard to the manufacture the "Reports of Committees, first session twentieth Conof the coarse cotton goods, it is generally conceded that, gress." The following interrogatory was propounded by with the aid of labor-saving machinery, they have already the Committee on Manufactures to Colonel James Shepattained such a degree of protection that they require no herd, of Massachusetts, a gentleman extensively engaged protecting duties to sustain them; that the duty is "no- in the manufacture of woollens, to wit: "Were not maminal merely, as the domestic manufacture is exported, nufacturers of woollens generally doing a better business and the foreign, of the same description, is never im- previous to 1824 than they have done since; and were ported;" that we are able to meet and successfully com- they not then doing well?" He answers: "They were, as pete with the British manufacturer in the foreign market. far as my knowledge extends. We were doing a better in regard to cottons, the report before me states that business previous to the tariff of 1824 than we have done "the cotton manufacturers are opposed to the removal of since. Previous to the tariff of 1824 I think the business the duty upon foreign goods of the same description as was a fair business, and nothing more." To a similar inthose which they produce. Although they believe they terrogatory, Mr. Abraham Marland, also a manufacturer, are able to compete in the manufacture of coarse cottons residing in Essex county, Massachusetts, answers: “I with the British manufacturers, they are apprehensive think the business previous to 1824 was better than it was that a reduction of the duty to a considerable extent in 1825 and 1826: my business certainly was." William on the imported, might induce the latter to attempt to R. Dickinson testifies that "the manufacturers of woolbreak them down by sending large supplies into the Unit- lens in this country were doing a better business previous ed States, and vending them at a present loss with a view to the year 1824 than they have done since." Other witto an ultimate gain, and that their vast superiority of capi- nesses examined before the committee testify to the same tal would give them great advantages in such a contest. facts, and also that the business was profitable. IndeAt all events they apprehend that much temporary indi- pendent of this positive testimony, the known fact, derived vidual embarrassment and loss might ensue, without any from the statistics of that period, that during eight years permanent gain to the public." This is the leading ob intervening between the act of 1816 and the increased jection of the cotton manufacturers to a reduction of duty, tariff of 1824, the capital invested in manufactures had stated with all its force; and the following is the very increased more than one-third, goes conclusively to show satisfactory and conclusive answer which the agent in the not only that the business of manufacturing was prosper report gives to it: "It is believed that the difficulty of ous, but that the incidental protection afforded by the act VOL. IX.-74 H. OF R.] The Tariff Bill. [JAN. 21, 1833. of 1816 was sufficient to sustain all the well-conducted entirely accurate, is a sufficient approximation, for my establishments. We have, then, eight years of actual general purpose,) from a statement made by a distinguishexperience under the act of 1816. It is not a mere ed and experienced manufacturer of woollens, before the theory or conjecture. The fact is established that the committee of this House, in 1828. His whole capital inmanufacturers were doing well. If this be so, is there vested in real estate, machinery, and active capital, was any sound reason why they may not still do well under $130,000. He manufactured annually 46,084 yards of the same rates of duty which were then sufficient to pro- broadcloth. He consumed in the manufacture of this tect them? On the contrary, is there not every reason to quantity of cloth, among other articles burdened with believe that even a less rate of duty would now be suffi- the payment of duty, 4,705 pounds of Bengal indigo, cient? Many of the establishments were then in their costing $11,293 20. The duty upon indigo, by the act of infancy; they are now firmly established, and, since that 1828, was fifty per cent.; making the amount of duty period, great improvements have been made in labor- paid upon this article $5,646 60; indigo, by the bill, is to saving machinery. Immediately after the war, during be free of duty; and this much the manufacturer is enthe years 1816 and 1817, it is well known that real estate, abled to add to his profits. A similar statement is also sites for water-power, machinery, and labor, were dearer made of the quantity and cost of olive oil, castile soap, than they now are. And if under all these disadvantages dyewood, copperas, vitriol, and woad used in the esta the business was profitable, can there be any reason, if we blishment, all paying duty; but by the bill either made now return to the rates of 1816, (as this bill proposes to free of duty, or the rates greatly reduced. If any gendo,) why it should not still be so? Under the act of 1816 tleman will take the trouble to make the calculation of none but real capitalists and persons of skill embarked in the rate per cent. of these duties upon the capital investthe business. The raw materials used were subject to ed, he will find the result to be about as I have stated it. the payment of but light duties, nor were the rates of im- In this establishment also, 102,159 pounds of wool are post on foreign manufactured articles so high as to hold used, of which 31,740 pounds are of foreign production; out inducements to smuggle, or otherwise evade the pay- and calculating the duty upon its foreign cost, by the ment of the duties. But, under the higher rates of duty im- rates of the act of 1828, the rate per cent. of the duty posed by the tariffs of 1824 and 1828, many persons, upon paid on wool added to the duties paid upon other articles borrowed capital and without skill, were induced to engage consumed, as already stated, upon the whole capital inin the business, with the hope of realizing large profits. vested, will be about eleven per cent. The whole duty By these acts also, heavier duties were imposed upon on wool is not repealed; it is by the bill reduced to fifteen the raw material, as well as upon the manufactured arti- per cent. ad valorem, which was the duty by the act of cle, thereby absorbing, in the duties paid upon the raw 1816. By the act of 1823, it paid a duty of four cents material, a portion of the profits which the manufacturer the pound specific, and also a duty of fifty per cent. ad would otherwise have made. The inducements to evade valorem. But though a reduction upon wool will be adthe revenue laws were also greatly increased, and the vantageous to the woollen manufacturers, it is objected faithful collection of the duties rendered much more dif- that it will be injurious to the wool growers. Upon this ficult. And although the protection afforded was great-point the Secretary of the Treasury, in his annual report, er, yet from all these causes the business was rendered presents the following view: more uncertain and unsteady than it was under the act of 1816. "By the act of the 14th of July last, the anomaly in the tariff of the United States, by which heavy and burI have stated that the bill before us affords to the densome duties were imposed upon the raw material, and manufacturers even greater protection than did the act especially upon the article of wool, was continued; and of 1816. The committee, it is true, in framing this bill, the necessity was thereby created, of retaining upon the have assumed the act of 1816 as a general basis; but they manufactured articles a higher degree of protection than have permitted to remain undisturbed the duties upon would otherwise have been necessary. An adherence to those articles which, by the act of 1832, were reduced this anomaly, instead of equalizing the burdens of the below the rates of 1816. Among these are the dye- people, augments that of the consumer, by increasing stuffs generally, now made free of duty, and which, un- the number of favored classes. Proper attention to the der the act of 1816, but to a still greater extent under facility and cheapness of producing, and the amount acthe acts of 1824 and 1828, were burdened with the pay- tually produced of the raw material in the United States, ment of duty. By the bill, the duty upon indigo is re- and an examination of the information collected by this pealed; upon olive oil it is reduced; and upon raw wool department, and transmitted to the House of Representhe duty is reduced to the rates of 1816; thus relieving tatives at their last session, will show that, in the extenthe manufacturer from the burden of a great part of the sion of manufactures, and in the augmentation of a sure high duty heretofore paid upon the raw material. By a market, the producer of the raw material has long since repeal of the duty upon indigo, and all the dyestuffs, and been in a condition to dispense with a great portion of the a reduction upon oil, and the raw material, the amount protection heretofore afforded. By the same information of the duties no longer required from him, and which he it will further appear that, by relieving the manufacturer is thereby permitted to retain, goes to swell the profits of from the burden of the high duty upon the raw material, his business. The amount thus saved to the manufacturer the existing duties may be very materially reduced, and by this repeal and reduction upon articles of indispensa- gradually removed, consistently with a just regard to the ble necessity in his business, and which he is compelled to interests which have so long enjoyed the advantages of have, under any rate of duty which may be imposed, is a the protective system. clear profit afforded to him by the bill; an advantage "By these considerations, and the proud and gratifying which he has not heretofore enjoyed under either the acts fact that there no longer exists any public debt requiring of 1816, 1824, or 1828. The amount thus saved, in the the present amount of revenue after the ensuing year, shape of duties, below the rates of the act of 1828, with- the question is submitted to the Legislature, whether out including in the estimate the reduction upon wool, is they will continue to raise from the people of the United equal to about six per cent. upon the whole capital in- States six millions of dollars annually beyond any demand vested in the woollen factories, and, including the re- of the public service, that favors, which have been so duction of duty upon that portion of the wool imported, long enjoyed, and which may soon be dispensed with, is equal to about eleven per cent. I am enabled to make without detriment to the national safety or independence, this general estimate of the saving to the manufacturer, may be indefinitely continued." by the repeal or reduction of these duties, (which, if not The wool growers consider the duty upon foreign wool |
