The Tariff As It Is

TEE TARIFF AS IT IS, COMPARED WITH THE SUBSTITUTE PROPOSED BY ITS ADVERSARIES IN The Bill reported to the U. S. House of Representatives by Gen. McKay of N. C. from the] Committee of Ways and Means, BY H. GREELEY I. The Question—The Danger. A great change in the policy of our Government and Country has been proposed in Congress—a change which, as all alike contend, will vitally affect, for good or for evil, the interests and prosperity of the whole People. If it were merely the suggestion of an individual, and unlikely to succeed, it might be disregarded as of little moment ; but the fact is far otherwise. It is the deliberate production of the most important Committee of the more popular aftd powerful branch of the National Legislature—a Committee selected with express reference to the consummation of this change, and acting at the behest of a party which is under a presumed political necessity of passing some such act. It is not a matter of suspicion or inference, since its own journals clearly declare it, that a minor section of that party say in effect to their more numerous allies, “You must abolish the present Tariff, and enact ‘ a substitute founded on a different principle and ‘ contemplating different ends, or we will not sup- f port the man you designate for President.” Is there an intelligent man in the Country, no matter of what politics, who doubts that this is one of the considerations, if not the main consideration, which has impelled the production at this time of Gen. McKay’s bill ? Where else is the impelling cause to be found ? Are the People, apart from professed politicians, dissatisfied with the present Tariff? Is Industry depressed and languishing ? Are products unsalable ? Is it more difficult than before this Tariff was enacted for Labor to find employment, or to turn Property into money ? Are the industrious classes unusually discontented with the present and apprehensive for the future ? Is the Revenue inadequate ? All these questions must be answered in the negative. The Country is enjoying at least an average and certainly an increasing prosperity; there are fewer vainly seeking work than for several former years, and cash payments for work or property are more general than in any year from 1837 to 1843. The Revenue for the current year has thus far exceeded all anticipation, all prece dent since 1836, and will doubtless exceed the Expenditures of the year by at least Ten Millions of Dollars. For what possible reason, then, is so formidable and determined a party attack made on the existing Tariff, except that Mr. Calhoun’s friends will not support Mr. Van Buren for President unless upon condition that the Tariff is broken down or its destruction secured ? And here is revealed a ground of danger that the thoughtless and short-sighted are apt to overlook. They say, “ There is no danger of the overthrow of the Tariff ; the Senate will stop the bill from the House.” Ah, sirs! how long can the Senate stop it? For this year we hope and trust it may; but, apart from the casualties which are constantly changing the composition of that body, have you reflected that the terms of seventeen of the fifty-two Senators expire with the present Congress, and that twelve of them are staunch supporters of the Tariff? Take out these, and let a new class be elected one-half opposed to the Tariff, and its destruction is sealed. If, then, Gen. McKay’s bill, which is certain to pass the House, should be stopped in the Senate, this will be no decision but a mere postponement of the vital question—or rather, it will be a reference to the higher Court of the People for their ultimate decision. What Congress may do or not do, therefore, at its present Session, is only important in view of its immediate effects. The great question of Protection or No Protection— the present Tariff, essentially as it is, with any modification of details which Experience may suggest to its friends, or the ' Free Trade’ substitute reported by Gen. McKay—must be decided by the People in their approaching election of a President and Congress. II. The Two Tariffs—Wool and Woolens. In the following pages I do not propose to argue the abstract propriety and necessity of Protection. That topic will be treated in another essay by which this will shortly be followed. In the present, I shall simply and briefly compare the sev53“ For «ale at the office of the TRIBUNE. Price 82 00 per hundred, or #15 per thousand. Orders must be addressed to GREELEY & McELRATH. Tribune Buddings, New-York, W0R20JUN’34

2 The Tariff as it is, compared with The corresponding section of the substitute reported to the House by Gen. McKay is as follows: Sec, 1 Be it enacted by the Senate and House of Representatives of he United States of America in Congress assembled, That from and alter the first day of September, in the year one thousand eight hundred and forty-four, the duties imposed under aud by virtue of the act entitled "An act to provide revenue from imports and to change and modify existing laws imposing duties oh imports and for other purposes,” approved on the thirtieth day of August, one thousand eight hundred and forty-two, upon the various articles in the said act named shall be changed, modified, and reduced in manner following, that is to say— . First. Onall coarse unmanufactured wool,the value whereof, at the last port sr place whence exported to the United States, shall be seven cents or under per pound, there shall be levied a duty of fifteen per centum ad valorem, instead of the duty of five per centum imposed by the said act; and on all other unmanufactured wool there shall be levied aduty of thirty per centum ad valorem, instead of the duties of three cents per pou-d and thirty per centum ad valorem, imposed by the said act. Second. On all manufactures of wool, or of which wool shall be a component part, except milled or fulled cloth,known by. the name of plains, kerseys, or Kendall Cottons, carpetings, flannels, bockings and baizes, blankets, worsted stuff goods, ready-made clothing, hosiery, mitts, gloves, caps, and bindings, there shall be levied a duty of thirty per centum ad valorem, instead of the duty of forty per centum imposed by the said act. _ Third. On all milled orfulled cloth known by the name of plains, kerseys, or Kendall cottons, of which wool shall be the only miterial, the value whereof shall not ex reed thirty- five cents the square yard at the last port or place whence exported, there shall be levied a duty of twenty per . centum ad valorem, instead of the duties imposed by the said act. Fourth Ou all carpets and carpeting of wool, hemp, flax or cotton, or pans of either, or other material not specified, there shall be levied a duty of thirty per centum ad valorem, instead of the duties imposed by the said act. Fifth. On all woolen blankets, the actual value of which at the place whence exported shall not exceed seventy-five cents each, there shall be levied a duty of ten per centum ad valorem, instead of the duty of fifteen per centum imposed by Sixth. On all hearth rugs, there shall be levied a duty of thirty per centum ad valorem, instead of the duty of forty per centum imposed by the said act. Seventh. On woolen yarn there shall be levied a duty of twenty-five per centum ail valorem, instead of the duty of thirty per centum imposed by the said act; and on all worsted yarn, there shall belevied a duty of twenty per centum adva- lorem, instead of the duty of thirty per cen tum imposed by the said act. Eighth. On woolen and worsted mitts, gloves, caps and bindings, and on woolen or worsted hosiery, that is to say, stockings, socks, drawers, shirts, and all other similar manu- ufactnres node on frames, there shall be levied a duty of twenty per centum ad valorem, instead of the duty of thirty per centum imposed by the said act. Ninth. On flinnels, of whatever materials composed, except cotton, and on bockings and baizes, there shall be levied a duty of thirty per centum ad valorem, instead of the duty of fourteen cents per square yard, imposed by the said act; and on coach lakes there shall be levied a duty of thirty per centum ad valo em, instead of the duty of thirty-five per centum imposed by the said act. Tenth. On ready made clothing, of whatever materials . composed, worn by men, women or children, except gloves,, mits, stockings, soaks, wove shirts, and drawers, aud all other similar manufactures made on frames; hats, bonnets, shoes, boots, and bootees, imported in a state ready to be used as clothing by men, women, or children, made up either by the tailor, manufacturer, or seamstress, there .shall be levied a duty of thirty per centum ad valorem instead of the duty of fifty per centum imposed by the said act. On all articles worn by men, women or children, other than as above specified or excepted, of whatever materials composed; made up wholly or in part by hand, there shall be levied a duty of thirty per centum ad valorem, instead of the duty of forty per centum imposed by the said act; and on clothing, finished in whole or in part, embroidered mgold or silver, there shall be levied a duty of thirty per centum ad valorem, instead of the duty of fifty per centum imposed by the said act. The changes proposed by the new bill, as will be seen, as follows: 1 st. The duty on Wool costing (after allowing for any dirt or foreign substance) less than seven cents a pound, is to be raised from five to fifteen per cent, while that on all other. Wool is to be reduced from three cents a pound and thirty per cent, to thirty per cent, alone ; while the duty on Woolen Goods in general is reduced from forty to thirty per cent.; on Wilton Carpets, treble ingrain, Saxony, Aubusson, &c, from sixty-five cents per square yard, on Brussels and Turkey carpeting Jrom fifty-five cents per square yard, on all Venetian and'ingrain carpeting from thirty cents per square yard, all to thirty per cent, ad eral provisions of the present Tariff as enacted by t^e late Congress in 1842, and the Van Buren s ubstitute, showing their respective reasons, objects and operations. J The first section of the Tariff as it is reads as follows: Sec. 1 Be it enacted, by the Senate and House of Representatives of he United States of America in Congiessas- sembled. That from and after the , assage o< this act, in lieu of the duties heretofore imposed By law on the articles hereinaf ter mentioned, and on such as may now be exempt from duty, theie. shall be levied, collected and paid, the following duties, that is to say ; First. Ou coarse wool unmanufactured, the value whereof, at the last port or place from whence exported to the United States, shall be seven cents or under per pound, there shall be levied a < uty of five per centum ad valoiem : And on all ether unmanufactured wool there shall be levied a duty of three, cents per pound, and thirty per centum ad valorem: Provided, That.when wool of different qualities of the same kind or sort is imported in the same bale, bag or package, and the aggregate value of the contents of the bale, bag or package, shall be appraised by the appraisers at a rate exceeding seven cents per pound, it shall be charged with a duty in couformitv to such appraisal: Provided further. That when wool ot different qualities and different kinds or sorts is imported in the same bale, bag or package, the co >tents of the bale, bag or package shall be appraised at the value of the finest or most valuable kind or sort, and aduty charged thereon accordingly: Provided further, That if bales of different qualities are em braced in the same invoice, at the same price, the value of the whole shall be appraised according to the value of a bale of the best quality : Provided further, That it any wool be imported having on it dirt or any material or imp-,rities other than thise naturally belonging to the fleece, and thus be reduced in value to seven cents per pound or under, the appraisers shall appraise said woel at such ptice as, in t heiropiuion, it would have cos', had it not been so mixed with such d.rt or impurities, and a dutp shall be charged thereon in conformity with such appraisal ; Provided also, That wool imported on the skin shall be estimated as to weight and value as other wool. Second. On all manufactures of wool, or of which wool shall be a component part, except carpetings, flannels, bock- ings and baiz.-s. blankets, worsted stuff goods, ready-made c’.'ihi-g, hosi^rv, mitts, gloves, caps and bindings, a duty ef forty per centum. shira Uj Wilton carpets and carpeting, treble ingrain, Saxon'and Aubusson carpets and carpeting, a duty of sixty- five cents per square yard ; on Brussels and Turkey carpets a«d carpeting, irity-five cents per .square yard ; on all Venetian and ingrain carpets and carpeting, thirty cents per square yard: on all other kinds of carpets and carpeting, of wool, h -mp, flax or cotton, or parts of either, or other material not otherwise, specified, a duty of thirty per centum ad valorem : Provided, That bed-sides and other portions of carpets or catpetiug shall pay the rate of duty herein imposed on caipets or carpeting of a similar character. Fourth. Un woolen blankets, the actual value of which at the place whence impoited shall not exceed seveutv-five cents each, aud of the dimensions not exceeding seventy-two by fifty-two inches each., nor less tnau sixty-five by sixty inches, a duty of fifteen per centum ad valorem ; aud on all other woolen blankets, a duty of twenty-five per centum ad valorem. Fifth. On all manufactures, not o'herwise specified, of combed wool or worsted, and manufactures of worsted and silk combined a duty of thirty per centum ad val r<-m ; onall hearth rugs, an ad valorem duty of forty per centum. Sixth, On woolen and worsted yarn, a duty of thirty per centum ad valorem. Seventh. On woolen and worsted mitts, gloves, caps and bindings, and on woolen or worsted hosiery, that is to say, stockings, socks, drawers, shirts, and all other similar manufactures, made on irames, a duty of thirty per centum ad valorem. Eighth On flinnels. of whatever material composed, ex- c- pt couona cuty or fourteen cents per squaie yard ; on bock, ings and biikes, fourteen cents per square yard ; on coach lanes, thir.y nv«.,Pr centum ad valorem ; on Thibet, Angora, and al I other goats? hair or mohair unmanufactured, one cent Sound; on earning, blankets, coatings, and al] other manures ol goats han or mohair, twenty per centum ad va- lo em. Ninth On ready-mede cv,thing, of whatever material com pos-d. worn by men, womsn^j children, except gloves, mitts, stockings socks, wove shirts a<d drawers, and all other simi- J tr manu'actu'-es m de on frames, hats, bonnets, shoes, bo»ts, aud bootees, imported in a state revjy to be used as clothing b . men, women or cnildren, made up either by the tailor, manufacturer or seams ress, an ad vaUrem duty of fifty per centum; on ail articles worn-by men; women or children, other than as above specified or excepted, of whatever mate-' rials composed, me.t’e up whol'y or in part by hand, a duty of forty-yer cer turn ad va lorem ;-ou all thread laces aud-iuser'- ings. fifteen per centum ad valorem ; on cotton laces.quil- li- gs, a« d insertings, usually known as trimming laces, ami on bobbinet laces cf cotton, twenty per centum ad valor, m; on laces, gatkona, tress s, tassels, knots, and stars of gold or silver, flue or half flue, fifteen per centum ad valorem ; on all articles emb.o;dftr‘,s in gold or silver, fine o< half fine, when fi-iijiheC. other than clothing, twenty per centum ad valorem ; a.n<l oil clothing finished in whole or in part, embroidered in gold and silver, fifty per centum ad valorem.

The Substitute proposed by its Adversaries. 3 valorem, or three dollars for every ten dollars’ foreign cost of the goods. Other descriptions of carpeting are thirty, per cent, under the present Tariff, and no change on them is proposed. [Tne reader is requested to note the rule by which the duties are levied on Carpeting under the existing Tariff, and judge of the correctness of the assertion that this Tariff taxes ihe inferior articles used by persons in moderate circumstances systematically higher than the more costly luxuries of the Rich. Wretched and insulting to the popular understanding as such assertions are, they are not without effect on the less informed and uninquiring.] Woolen blankets of a prescribed size, not costing over seventy-five cents each, are admitted by the present Tariff at fifteen per cent, and all other Woolen blankets at twenty-five per cent. This is so changed by the new bill that all Woolen blankets costing less than seventy-five cents are to be admitted at ten per cent, on their value. [It is easy to see that, as no restriction of size or shape is here made, nothing given but the name to tell what are ‘ Woolen blankets’ and what are not, here is a hole opened to let in almost any thing Woolen under this extremely low duty.]' Woolen and Worsted yarn now pay thirty per cent. The new bill reduces Woolen to twenty-five and Worsted to twenty per cent. Woolen and Worsted Hosiery—Stockings, Socks, Drawers, Mitts, Caps, Gloves, &c.—now pay thirty per cent, and are to be reduced to twenty per cent. Coach Laces are to be reduced from thirty-five to thirty per cent. Flannels now pay fourteen cents per square yard, which the new bill reduces to thirty per cent. Ready-made Clothing now pays fifty per cent, which is proposed to be reduced to thirty per cent Articles imported in a state to be worn, but not made up by hand, which are now taxed forty per cent, are also to be reduced to thirty per cent. Cotton Laces, &c. &c. not made up into dresses, are to be taxed twenty per cent., laces, galloons, tresses, tassels, knots and stars of gold or silver being considered materials for clothing rather than manufactured articles, are now charged but fifteen percent. While made-up Clothing embroidered with gold or silver is taxed fifty per cent. The former are left unchanged, while the latter is reduced to thirty per cent. III. * Incidental' Protection Illustrated. Such are the provisions of the first or Woolen section of the two rival Tariffs. The present Tariff has two objects, which are consistently pursued; first, to protect efficiently the growing of Wool and the production of Woolen fabrics by our own people; secondly, to admit such Wool or Woolens as do net come in competition with our own at the lowest rates. To this end the cheap, coarse, indifferent Wool procured from the vast flocks of sheep which run at large over the great plains of Buenos Ayres, New-Holland, &c. and may be purchased for less than seven cents a pound, is admitted at the low rate of five per cent, because a duty of a hundred per cent, would not justify our own people in producing an article answering to this, and would only tend to give British manufacturers a great advantageover ours in supplying our own, markets. Corresponding with this, the coarse fabric known as ‘ Woolen blankets,’ costing less (for the prescribed size) than seventy five cents each, and used mainly as clothing and bedding for slaves, is admitted at a duty of fifteen per cent. Here is a very moderate discrimination of ten per cent, in favor of the American manufacturer. But the proposed Tariff actually discriminates the other way. charging the raw material fifteen per cent, and the manufactured fabric ten per cent. This, we must suppose, is what the Free Traders consider ' Incidental Protection !' Of course, it will be utterly impossible lor our manufacturers to go on making tfos description of goods, with a discrimination of five per cent, against them, so that they must pay more duty on the wool (which is all imported) than their foreign rivals in our markets pay on their goods. Is this just? Is it politic ? Can any man imagine a reason why we should give British manufacturers five per cent, ad vantage^ ver our own in the production of a rude, cheap and necessary fabric for our own markets ? This is not a single instance, by any means. The common fulled cloth, kerseys, &c. are charged but twenty per cent, duty, while the raw wool is taxed thirty per cent.—so with every description of Hosiery—Stockings, Socks, Drawers, Shirts, Mits, Caps. &c. which are charged but twenty per cent, while the raw material is taxed thirty, and Yarn twenty-five. Here is a regular gradation of discriminations against American and in favor of British manufactures—the raw material being taxed thirty per cent, the partial manufacture twent.y.five, but if it be wholly made up into plain cloths, or any description of Hosiery, the duty is to be but twenty per cent.! How can this be justified ? What end does it contemplate ? If these States were still British Colonies, and this were an act of the British Parliament regulating the intercourse between the mother Country and the Colonies, we could understand it, for it is precisely like much of the legislation of that Parlia- mentwith regard to us during our Colonial dependence, when Lord Chatham declared it the fixed policy of the British Parliament that not even a hob-nail should be manufactured in America ; but as an act of an American Congress, such legisla’ion is unaccountable. Here are the descriptions of goods mostnecessary and common among us so taxed that our supplies must inevitably be derived from British factories, while our own are closed and dismantled. If the authors of this measure expect to receive eight dollars a day for their services, they ought in common fairness to send in their bill to those whose inter, ests they are promoting, and not tax it on the American People. IV. How the Wool-Growers and Farmers are affected. And here let me expose the fraud which this bill practices upon the Wool-Growers of our Country: Tney are virtually told, ‘ You have thirty per cent.. protection on Wool, and that ought to satisfy yen.’—But what is thirty per cent, on Wool good for, if Woolens are to be let m extensively at ten, twenty, and any kind of Woolen Yarn at twenty-five per cent. ? Surely, our Wool-growers must know that every pound of wool imported pi the shape of woolen cloths or hosiery supplies the place of a pound of Wool grown in this country—-that every yard of Woolens imported interferes with and restricts their

The Tariff as it is, compared with market just as much as if it we re so much Wool, while they lose beside the market for their sheep, as well as other produce which would he consumed by those employed in manufacturing the 'Cloth in our own Country. And here it may be well to observe that the 'measure of Protection affirrded to the great Agri- . cultural interest of the Country by the present Tariff is not determined by the amount of duties on its own products merely. True, there are ’ specific duties oh the several kinds of Grain, Potatoes; Cheese, &c. which in most instances have Tittle effect on the American price or production. "But the Farmer is benefited by whatever creates an adequate cash market for his products in his vicinity, or brings such market considerably nearer him. Grain may be higher or lower in Boston than it was twenty five years ago ; but the Farmers of Vermont or New. Hampshire no longer produce grain for the Boston market, because the building up of manufactories all around them, has given them an adequate market for all their grain nearer home, and justified the productionof vegetables, fruits, &c. which would not bear transportation to the Boston market. I have known a small tract of land bought by a New- Hampshire farmer for a hundred dollars, and, a manufacturing village about the time springing up near him, he sold the wood off the lot for a hundred dollars, and had the land left, worth more than it was when he bought it. This wood was worth nothing andnever would be, while our manufacturing was done in England. This simple fact illustrates a general law. Whatever di-> versifies and increases the industry of any section almost inevitably increases the value of all the property of that section. Take any County in which a thousand men are constantly at work, and set. three thousand steadily and effectively at work in it, and you can hardly fail to raise the value of whatever land, timber, ores, water-power, &c. &c. it contains. If the present Tariff did not impose a duty of one cent on any Agricultural product, it would still be of immense, essential importance to our Agriculture by creating large and convenient markets for its products, many of which, being balky or perishable, are without commercial value unless there be an adequate market for them at hand. The present Tariff is defective, in my judgment, so far as relates to Wool and Woolens., in imposing too low duties on several descriptions of Woolen goods. Wool being higher here than abroad, and the British manufacturers having the advantage of an essentially free importation of Wool, and thus having their raw material cheaper than their American rivals, and having both Labor and Capital at cheaper rates than they can or ought to be afforded here, the duty on all Woolen goods ought to be equal to the duty on Wool and at least ten per cent, addition. But it is not so, except on Carpets, Flannels, and*Ready-made Clothing, so current is the clamor agaiaet protecting manufactures, so general the dread of the demagogue cant, that manufactures sxe protected at the expense of other interests, that while a duty equivalent to forty or fifty per cent, is imposed on all Wool coming in competition with ours, several descriptions of Woolen Manufactures are allowed to come in at thirty per cent This, the Farmers are told, is favorable to them, when in fact, the duty on Wool is partially neutralized by the lower dutv on some Woolens. No raw Wool, except of the poor, coarse kind entirely different from ours, is now imported ; but Woolens are and will be while the duty remains below that on Wool; and this is clearly just as detrimental to the Wool-Growing interest as the importation of so much Wool. It ought to be stopped. But the new bill, instead of correcting this defect in the present Tariff, magnifies it tenfold. It first takes off about half of the present duty on raw Wool, (the specific three cents a pound, leaving but the thirty per cent, ad valorem, which is to come down to twenty-five at the end of another year,) and then it destroys the ef. ficient Protection now afforded to our Carpetings, Flannels, Bookings, Baizes, Ready-Made Clothing, &,c. and cuts down the duty on every thing else. It is a bill to enich the landlords and millowners of Yorkshire at the expense of the yeomanry of New-York, New-England, and all our Wool-growing States. Can it be that it will meet their approval ? V. Effect of the Tariff on Wool. It is often positively declared that our Farmers pay more for all they buy and receive less for all they sell since or on account of the Tariff. Some color of plausibility is given to this gross untruth by the fact that Agricultural produce had been raised to an extraordinary price by the failure of the Grata crop of 1836 combining with the Currency expansion and extravagant speculations of that and the two preceding years, and the high prices so attained went down inevitably under the concurrent operation of better crops, more general industry, more contracted currency, and the gradually diminishing Tariff of succeeding years. Cattle were eaten up during the speculating times to such an extent that Beef was scarce and bore high prices during several succeeding years, as the replenishing an inadequate stock is a matter requiring more time than an increased productionof Grain. The lowest point of depression had not been reached when the present Tariff was enacted. And because Agricultural staples did not at once begin to rise —because some of them, under the influence of preexisting causes, continued to fall—the clamor was at once raised that the Tariff had reduced the prices of Produce ! But in what way did any man believe or suppose that Protection would increase the prices of Produce ? Was it not by building up new branches of Industry—by opening new and convenient markets for whatever the Farmer had to sell ? Now this was manifestly a work of lime; the improvement, to be natural and healthy, must lie progressive. From the day the I present Tariff became a law, it set on foot causes which must unfailingly increase the prices of Produce. But these causes required time for their development; meantime the prior causes of depressing prices were still actively at work. For a brief season, the adversaries of Protection had a ch an ce to obscure these truths. The Tariff, passed the last of August, 1842, did- not materially increase the price of Wool immediately, in the face of heavy stocks of Foreign Goods in the market, imported in anticipation of increased duties, with the general contraction of Currency and de­

The Substitute Proposed by its Adversaries. pletion of Business which had been the work of years. Fewer Goods than usual were bought in the Spring of 1843, and Manufactures, no more than other interests, were, aroused to decided activity that season. ‘Where is your better price for Wool?’ was the taunting inquiry of adversaries of Protection. ‘ It is coming,’ was the firm assurance of its friends.' A year has since passed, and every interest of the Country has felt the beneficent change. See how the present prices of Wool compare with those a year ago : . PRICES OF WOOL IN THE NEW-YORK MARKET. ; American. Jan. 1843. Jan. 1844. Full blood Saxony..............33 a 35c. 45 a 47{c. Mixed Merino and Saxony-.29 a 32 38 a 40 , 4 to full-blood Merino...........28 a 30 36 a 38 i blood do.............. 24 a 26 30 a 32 Native to {blood do............. .22 a 24 30 a 32 Pulled Wool, super............. 22 a 24 36 a 38 No. 1..............18 a 20 31 a 33 No. 2.................8 a 10 18 a 20 Western tub-washed.............20 a 22 30 a 34 Average........... -.............. 23{c. 35{c. Or over 50 per cent, advance. Imported Wool has- advanced in equal measure, averaging 50 per cent. None but the poor, coarse, dirty South American Wool is imported to any extent. Such has been the effect of the Tariff on the interests of the Wool-growers. VI. How the .Tariff affects Prices. ‘ But,’ says a Free Trader, you say a Protective Tariff reduces the cost of such articles as we buy; and here you say it increases the price of Wool. Which do you stand to ?’ I answer, Both. It is true that enlightened, persistent Protection of our Home Industry will secure our Farmers a better price for their products, and at the same time cheapen the cost of such fabrics as they must buy. I cannot in this essay elucidate this truth so fully as I have done elsewhere, but must be content to indicate the heads of the argument. ' They are as follows : 1. Protection does this by equalizing prices.— While the Farmers of this Country exchange their Grain for British Cloth, the American Farmer will in the average (apart from all duties) give fully twice as much Grain for his Cloih as the British Cloth-maker gets for it. But build up Manufactures by the side of the Farmers, and the two classes of producers will exchange their products at a cost of not ten instead of fifty to two hundred per cent, on their value. The cloth- maker and grain-grower will both receive more of what they want for what they have to spare than they did before—the enormous cost of transportation back and forth being saved. 2. The Products of Industry are naturally divided,in respect to the subject under consideration, into two classes—one consisting of articles whereof the cost of production is proportionate to the amount of the product; the other not subject to this rule. For instance, Wool, Grain, Boots, Shoes, &c come under the first law; you must double the outlay of Capital and Labor if you require a double product, and the price of the articles would probably be increased rather than reduced by the increased demand. But if twice as many Newspapers, for instance, were required, the cost of producing the requisite supply wbuld not nearly be doubled, and the price would surely be reduced. It is easy to prove this by noticing the prices of newspapers in different sections of our own Country. In New- England, and wherever else the population is dense and reading universal, Newspapers are far cheaper than in sections where few are required. The same truth may be observed by contrasting the cost of Newspapers in despotic and ignorant Countries, where few read, with that in free and enlightened* Countries, where nearly all read.—• The larger steady demand every where ensures the cheaper supply. * Take another example: Few can be ignorant* that Piano Fortes, for which there is a limited and capricious demand, are sold higher, in proportion to their absolute cost, for labor and material, than Bureaux or Tables, for which there is a large and constant demand. The maker argues, ‘ If I produce Piano Fortes, the demand forthem, * the public taste with regard to them, is capri- ‘ cious; I may keep them long unsold, or may be ‘ deprived, by some new improvement or instru- ‘ ment, of a sale at all; while Bureaux or Tables ‘ will be sure to sell, and are not likely to depre- ‘ ciate materially if they remain on my hands.— ‘ I must charge a profit accordingly on what I do ‘sell.’ This is prudent and just. Now if the demand for Piano Fortes were increased until they should become as common and uniformly salable as wooden clocks, the price of them would inevitably be reduced, because they would be afforded cheaper than now. A man who now makes and sells ten to a hundred a year could and would make cheaper and sell cheaper, if he could be sure to sell ten thousand a year regularly. Here is seen the operation of a principle which ensures cheaper production and lower pricesin proportion as the Elome Market is widened, steadied and made secure. VII. Cotton and Cotton Goods. The Second Section of the present Tariff is as follows: First. On cotton unmanuf <ctured, a duty of three cents per pound. S eond On all manufactures of cotton, or of which cotton shall be a component p tri, not otherwise specified, a duty of tbi tj perceUum a> valorem, excepting .uch cotton twist, yarn, and thread, a d such ot er articles as are herein provided tor: Provided, That al1 manufactures of cotton, or of which c tton shall b- a component pari, not dyed, colored, printed or st ined, uot exceeding in value t reaty cents p r square yard, shall be valued ar twewy cents per square yard ; and if dy. d, coior d printed or stained, in whole, or in p-rt not ex- ce-dingin value thi.ty cents the square yard, shall be valued at thirty cents per squue yard, excepting velvets, cords, moleskins, fus.iaus, buffalo cloths, oi goods manufactured by napping oi raising, cutting or shearing, not exceeding in value thirty-five cento thesqu re yaid, which sha J be valued at thirty five cents pen qua e yard, and duty be paid thereon accordingly. Third All cotton twist, yarn and thread, unbleached and uncolored the true value of which at the place whence tm ported shall he less than sixty cents per pound, shall be valued . at sixty Cen's per pound a.>d shall be charged with a duty of twenty five per cutum ad valorem; all bleached or colored coitou tw:-st, yarn and thread, the true value of which at the place whence import-d shall be less thm seventy-five cents per poun i, shall be vslue'l at s venty-uve cents per pound, sad pay t duty of t • mt -five per centum ad valorem ; all other cotton twist, yarn, and thread on spools or otherwise, shall pay amityuf hirty percentumad valorem. The corresponding section of the bill proposed as a substitute by Gen. McKay, reads thus: First. On all manuf4cture» of cotton, or of which cotton sha'l be a component par1, not otherwise specified, and except ing such cottou-tn ist. yarn and thread, anil such other articles as are here n otherwise provided for, there shall be levied a duty of twenty -five per centum ad valorem; and the proviso to the second subdivision o; the second section of the said act shall be, and the son is hereby, repealed Seccnd . u co ton-twist, yarn and thread, bleached orun pleached, co'oitd or I'ncolo’erl, and on spools or otherwise, here shall be levied a datv of twenty-five per centum ad valorem, <nstead of the various duties imposed by the said act.

6 The Tariff as it is, compared with VIII. The Difference—The Minimum Principle. The differences between the two bills, as will be seen, are these: The present Tariff imposes a duty of three cents per pound on raw Cotton.— This Gen. McKay’s bill proposes to. abolish. As Cotton is not only produced very cheaply here, but is an article of considerable balk (about four times that of fair Wool.) in proportion to its value, this change is of no practical importance. Its principal effect will be to invite the Cotton of Texas to New-Orleans to be sold or shipped instead of being sent to Europe direct from Galves. ton. If Cotton-growers assent to this, other, interests will not object. Ou Cotton fabrics, the new bill proposes sweeping changes. Nominally, the reduction of duty on fabrics is but five per cent, and on yarns and threads nothing; butreal- ly the reduction is a very great one, and amounts to an entire subversion of the Protective policy.— The present Tariff establishes a minimum or lowest value which each description of imported Cotton Goods can be estimated to have cost, as follows: Description. Aq. sq. yd. Plain Cottons, (Sheetings, &c.)............... 20 cts. Colored or printed do. 30 “ Velvets, Fustians, &c, 35 “ Description. Per lb. Cotton, Yarns. &c. unbleached ............... 60 cts. Do. bleached or colored 75 “ If costing more, on cost. 30 p c. —The policy of extending efficient Protection to the Home production of Cotton Goods was first distinctly acknowledged in 1816, when Mr. Calhoun, holding the position now occupied by Gen. McKay, took a leading part in reconstruct mg the Tariff. At that time the plan was first adopted, under his sanction, of affording Protection to our then infant and feeble Cotton Manufacture by establishing; this very minimum principle, which says in effect, ‘You must pay so much duty, or you cannot import Foreign Cottons.’— Under the vivifying, fostering influence of this principle, the Cotton Manufacture instantly.took strong root in this Country, grew and expanded rapidly, and has for years been the most vigorou- and hardy Manufacturing interest in the Country. IX. The Effect of Efficient Protection. What has been the effect on the interest of the consumers ? It was at first assumed that Cotton goods would be dearer and poorer in this Country than formerly, but the contrary has notoriously been the result. We now obtain our Cotton Goods at one-half to one-fourth the cost of similar 'fabrics so long as our supply was almost entirely from abroad. We have extended and perfected our manufacture until some descriptions of Cottons are sold here at less than two cents per yard over the cost of the raw material. If Great Britain or any other nation would.give us outright the spinning and weaving of our plain Cottons, we furnishing the raw material and paying transportation both ways and mercantile charges, it is doubtful that our consumers would be supplied with the goods cheaper than now. It is quite certain that, taking all things into consideration— the interest of our producers as well as consumers of Cottons—it would be unwise in us to accept the offer. Wc are now producing our own supply entirely, except some of the higher-priced and fancy fabrics, and producing it cheaper than any other nation could possibh- afford to do it f^r us. Then why change ? What good end is desired or attainable ? Cotton fabrics generally are now produced as cheaply here as any where in the world. Our own workers are employed in supplying our wants, and at barely adequate prices We are making these goods so cheap that we not only command the Home Market, but rival Great Britain in the1 markets of South America and China, and Hon. Nathan Appleton, of Boston, (Member of the last Congress,) states as a fact that the British troops in India are partially clothed in American Drillings. A consignment was last season sent from the ‘ Stark Mills,’ Manchester, N. H. to Manchester, England, and there sold at a living price. The Labor costs more here than in England, but our mills run by water-power and theirs by steam; the former costing but about one-third as much as the latter. Then the Cotton grows here; and though for the last year it has been fully as high here as in England, yet it in the aveiage is a trifle lower. Give us Cotton Mills on the navigable waters of Tennessee and the West generally, .where Cotton is ten to fifteen per cent, cheaper than it can be in New-England, and we will, with the present Tariff to secure the Home Market as a basis, be able to rival any nation in any open and equal market of the world in the production of these goods. X. Prices of Cotton Fairies—Two Errors Corrected. A table of comparative prices of the cheaper and commoner Cotton fabrics, made up in this city, has been widely copied and quoted in Congress, purporting to show a rise in Cotton Goods consequent on the Tariff, averaging some 30 per cent. But this statement is designedly false and deceptive. Although concocted and used expressly to show that the present Tariff had increased the cost of Cotton Goods, it did not venture to compare, as it was bound in honesty to do, the prices prevailing at some time before the present Tariff with those of the same kinds of goods since or now, but it compares the prices of January, 1843, with those of January, 1844, both since the. Present Tariff was enacted—the first five months after it went into operation. If the compiler had meant to show honestly the effect of the Tariff on prices, so far as it has haci any effect, he would have compared the prices in the first eight months of 1842, through which the Tariff was barely twenty-per cent., with those of 1843 and 1844, since the present Tariff was enacted. This would have completely upset his calculation, and showed that there had been no enhancement of price on Cottons in consequence of the Tariff—on many descriptions a reduction, and on others no farther advance than the increased price of Cotton absolutely compelled.— The following table of comparative prices of Cotton Goods in January, 1842, when the duty was but 20 per cent., and in the corresponding month of 1844, under the operation of the present Tariff, was prepared for the New-York Tribune by Messrs. J. P. Nesmith & Co. a wholesale commission house of the highest character in Pine- street, who sell Domestic Cloths very largely. It has now been some time before the public, and no one has ventured to question its perfect accuracy. See how the Tariff has raised prices:—

The Substitute Proposed by its Adversaries. Brown Feb. Feb. Sheetings: 1842. ’44. ............ 12% Drillings: Stark Drills.... Flannels: Canton............ Shirtings : Blenched Feb. Feb. Sheetings. 1842.’44. Waltham A...........13% 11% “ B........... 11% 10% “ W........... 14 Hamilton................ 16 13 8% 8% % 8% Stark Drills............. 9% 9% Sea Island............13% 12% Be it remembered that the price of raw Cotton In January, 1844, was fully fifty per cent, higher than in the corresponding month of 1842, and that Wool, of which Flannels are made, had risen nearly or quite in the same ratio. These goods, both Cottons and Flannels, are absolutely protected by the present Tariff against Foreign com. petition, securing to our own people the entire Labor and profit of producing them. What is the consequence? Does the price increase in proportion to the duty ? Look to the table, and judge. These are not picked articles. They are the kinds of goods sold by Messrs. Nesmith & Co. without selection or reservation. Other Cottons are ruled by the .same influences, and exhibit the same results, except the more costly Fancy Goods—de Laines, .&c. &c.—which all who' buy them know are much lower than formerly. There is not an article of Cotton fabric which has begun to be produced here since this .Tariff was enacted which is not cheaper now than it was prior to 1842. I challenge any man.todeny this. It is true that in the early part of 1843 common Cottons were cheaper than at present—the cost of the raw m ituri^i being fifty per cent, less, and the Business ।>i the C mntsy, not yet recovered from the depletion and depression of the Free Trade era, very contracted and feeble.— Prices are affected quite as much by the relation of Supply to Demand as by absolute cost; and in •the early part of 1843 the markets for goods were glutted, and many articles selling at ruinously low prices. It was a subject of general exultation among the anti-Tariff presses that a leading U. S. Senator, active in passing the Tariff, failed in extensive business as a printer of Calicoes in the Spring or Summer of that year, and that several manufacturing companies, unable to sell their goods but at ruinous rates, were brought to a dead stand or broken up. Now these same ■presses quote the prices of goods in that year as Free Trade prices, and argue from the subsequent rise (which was inevitable under any Tariff) that "the high duties have raised the price of goods! XI. The Profits of Manufacturing. Again: It has been widely asserted, and believed by the uninformed, that the manufacturers ■are making extravagant profits under the present ‘Tariff—some say twenty, others thirty, fifty, and a few go the whole hog, and put it at eighty per cent! But Hon. Nathan Appleton, himself a large owner of factory stock, and a man whose integrity is beyond suspicion," states that he has been engaged in making up carefully a table of the dividends of the several Manufacturing Companies of Lowell during the two years last past, and that the average of those dividends is less than six per cent, a year. I presume they, have been doing better of late than formerly, since Cotton has been rising bn their hands, and the market for goods has been large and active. But -should Cotton fall this year as it rose last, they would lose all they have gained. There are two I or three Companies—the Merrimac Print-Works at their head—which have valuable business con. nexions, dispose of their goods with little cost or loss, arid are able to hold on when goods can only be sold at a sacrifice, which have done very well, and these every body takes note of; but those which make nothing, and fail, (as at least one has failed in Lowell within the past year,) nobody I remarks ®r considers. I am assured by a leading manufacturer that the average of manufacturing dividends through the last'ten years has fallen be. low five per cent. At this moment there are factories in abundance which have stood idle through th e past year because they could not be run at a profit, and which can now be bought at half their cost. If those who assert that the manufacturers average twenty or thirty per cent, dividends did not know better, they would be into the business right speedily. There is no mystery, no monopoly, about the business; the best practical men can be engaged at fair wages to direct its several departments, and Labor is abundant, as well as Capital. Why, then, do not those who say manufacturers are making exorbitant dividends go into the business,? and either make money rapidly or at the worst do the public a service by reducing the prices of goods ? In truth, they know, as every body knows, that no such dividends a.s they talk of are made, save in rare instances ; just as now and then a Farmer doubles his little capital in a year or two, while the great mass make little and many are actually losing. They know that no exorbitant dividend can be realized in a calling open to universal competition—that the rate of profit in any business can only be'raised permanently by increasing the general productiveness of Labor and profit of Business throughout the Country. XII. Protection and the Cotton Manufacture. TABLE I. Comparative prices of Upland Cotton in the New- York Market; also coarse Cotton Domestic Goods, for each year (in the month of April) since the last War with Great Britain: Year. Up. Cotton, per lb. 3-4 Br. Sliirt’gs. 4-4 Br Sheet’gg per yard. per yard. April 1815.. 1816.. ........28 ..........21 ......... 28 1817.. ........281 . ...1..21 ......... 28 1818.. ........32 ......... 21 .......... 28 1819.. ........26 ..........19 ......25 1820.. ........16 ......... 121 . ..........’.18 1821.. ........131 . ..........121 . ..........17 1822.. ........15t . ..........13* . ........,17} 1823.. ........10i . ......... 11 ..........16 1824.. ....... 14 ......... 10 ......... 12 1825.. ........19 ..........10 ..........13J 1826........11 ........... 9 ..........12 1827.. ........9i . ........... 9i . ......... Hi 1828.. ........10 ........... 9 ........... ii 1829.. ....... 10 ........... 71 . ........... 9 1830.......... 9i - ........... 7 .............. 81 1831.......... 9 ........... 7i . ..........10 1832.......... 9 ........... 7 . ........... 8 1833.. ....... 101 . ........... 7 ;......... 9 1834.......... 11 ........... 6i . ........... 8 1835.......... 17 ........... 8 ..............9 1836.......... 18 ......... 7} . ......... 10 1837.......... 12 ........... 7 . ............9| 1838.. ....... 8 ......... 5 ........... 7} 1839.......... 14 ........... 6 ........... 81 1840.......... 8 ........... 5 ...........7 1841.......... 10 ......... 5 ...........61 1842.. ....... 8 ........... 4i . ........... 6 1843.......... 7 ........... 4 ...........5 1841..............81 .......... 5 ........... 7

The Tariff as it is, compared with N. B. Power Loom Sheetings of American manu- I facture were first introduced into the New-York market, from Waltham, Massachusetts, in 1817 or 1818. Brown Sheetings (yard wide) from the Waltham Manufactory, then sold at from 28 to 30 cents per yard. The same Factory now sells better goods m this market for eight cents per yard/ Their Waltham fine Bleached Shirtings, made of Sea Island Cotton, sold in 1819 at 37^ .cents. The same Factory now sell goods of equal or better quality, at nine cents per y ard. TABLE IL ’ Comparative prices of colored Cotton Domestic Goods in the New- York Market for a series of Printed Calicoes. The above tables, year^: Year. Striped and 4-4 Checks, Plaid Ginghams. April 1818... ........26 cts.... 1819... .-.30 ......... 25 1820... — .24 ......... 16 1821... — .22 .........17 1822... .^..20 .........17 1823... ....20 ......... 164 .... 1824... — .15 ......... 12" .... 1825... — .18 ......... 151 1826... ....14 ......... 14" ... 1827... — .14 ......... 12 1828... — .14 ......... 11 1829... ....14 ......... 10 1830... — .12 ........... 9 1831... — 112 ......... 11 1832... ....11 ........... 9 1833... — .11 ......... 8 1834... — .11 ......... 71 ... 1835... ....11 ........... 9" 1836... — .11 ..........10 1837... — .11 ......... 10 1838... — .9 ........... 8 1839... .... 9 ........... 8 1840... .... 8 ........... 7 1841... ....8 ........... 7 1842... .... 8 ........... 7 1843...___ 7 ........... 7 1844... .... 8 ...... 8 compiled . .20 cts. ..17 - ..16 ..14 ..13 -.121 ..12 ..11 -.101 ..10J -W ..10i ..10 ..10 ..10 ..10 ..10 .. 8 .. 9 for this essay from the books of heavy wholesale merchants of this City, exhibit the actual cash prices of Cotton and of Cotton Goods at the several periods specified, and clearly illustrate the progress of the Cotton Manufacture in this Country, under the system of minimums, or high specific duties for all common fabrics, established in 1816/ were sold in this market as low as 3| cents, which was, however, at a loss to the manufacturer. • These tables tell their own story. Bear tn mind that the Protection on these goods has been virtually specific (by means of the minimum) and most effective, except for a'short time prior to August, 1842, under the tapering off of the Compromise Tariff. Now I by no means assert that there would have been no reduction in the absence of a Tariff, but I do consider it clearly demonstrable that 1. The reduction in price of Cotton Goods as compared with that of Cotton has been far greater and more rapid than it could have been in the absence of a Protective duty; 2. That our People are now supplied with Cotton Goods at far cheaper rates than any nation is or can be which does not mainly fabricate them for itself. If this is questioned, the evidence can be procured without difficulty. 3. That it cannot, in the nature of things, be advantageous to send our Cotton to Europe to be fabricated into Shirtings and Sheetings for our own consumption. The mercantile charges upon the complicated operations necessary to its double transportation and redistribution over our Country would inevitably overbalance any possi. ble saving from the superior cheapness of Labor n Europe. XIII. Why Cotton Manufactures still need Protection. The question is a fair one, and shall be fa Fy answered. I do not consider a duty above twenty- five per cent, essential to the stability of our manufactures of plain and common fabrics.— These can now take dare of themselves under a low duty. Like Nails, and several other articles, which first attained vigor under a high specific duty, they are now too strong to be easily overthrown. But a large proportion of our Cottons take the form of Calicoes, figured, printed and fancy godds of all descriptions, and of these the American Manufacture is far less vigorous and invincible. They are hut recently and many of them hardly naturalized ipon our soil, and their processes, especially of designing and coloring, are not yet brdught to perfection. 1 Why can’t we make calicoes as cheap as the British or French V inquires a Free Trader. Sir, we can, we do ; but a great many of our People prefer the Foreign article and will pay a higher price for it. A retail merchant of Rahway assures me that he sells American Calicoes cheaper than he can buy British of equal value, and yet he must keep British, because some of his customers will have them. An experienced merchant assures me that the average value of British and French Calicoes in this market is four cents a yard above that of their American rival. Something’ of this is due to a false and pernicious taste in a portion of our People ; something, doubtless, to a want of the highest excellence in finish and coloring in our goods; and something to a permanent cause. To prepare the plates or blocks, &c. &c. for printing a pattern of Calicoes is a costly undertaking ; it cannot be afforded at the present prices of Calicoes unless a large sale thence can be realized. A British manufacturer prepares a new pattern and prints 100,000 pieces, which are half ’ disposed of in Great Britain and her dependenAmerican Printed Calicoes were not much known in this market before the year 1826. Previous to that period the market was supplied with British Calicoes, which sold at prices varying from 25 to 60 cents per yard. Both British and French Calicoes are now pretty much driven out by the American Prints, which supply the demand at about one-fourth of the old prices paid for imported goods. Bed-Ticking.—This article, of both Domestic and Foreign manufacture, formerly sold for a few years after the peace from 60 to 100 cents per yard, if from 7-8 to a yard wide, and of good quality. The Dorchester Massachusetts Manufactory introduced their power-loom Tickings into this market about the year 1820. They were a superior article, and sold at first for more than 40 aents per yard, and for a long time at 37| cents per yard by the bale. They have gradually declined in price, until the present time,’when they sell for 15 cents for the finer and 12J cents per yard for the coarser qualities. The Butternuts Manufacturing Company, of Otsego County, one of the oldest establishments in the State of New-York, as we are informed by their Agent, A. G. Washbon, Esq. sold their 3-4 Brown Cottons, (made by hand looms,) in 1815, at 28 cents per yard, and they are now doing a fair business by selling similar goods made by power looms, at 6 cents per yard; at one time last year these goods