the difpenfation of premiums for the encouragement of agriculture, arts, manufactures, and commerce; and though they are for the moft part voluntary affociations, with comparatively flender funds, their utility has been immenfe. Much has been done by this mean in Great Britain; Scotland in particular owes materially to it a prodigious amelioration of condition. From a fimilar establishment in the United States, fupplied and fupported by the Government of the Union, vaft benefits might reasonably be expected.

VI. The exemption of the materials of manufactures from duty.

The policy of that exemption as a general rule, particularly in rela tion to new establishments, is obvious. It can hardly ever be advife. able to add the obstructions of fiscal burthens to the difficulties which naturally embarrass a new manufacture; and where it is matured and in condition to become an object of revenue, it is, generally speaking, better that the fabric, than the material, fhould be the fubject of taxation.-Ideas, of proportion between the quantum of the tax and the value of the article can be more cafily adjusted in the former than in the latter cafe. An argument for exemptions of this kind in the United States is to be derived from the practice, as far as their nece fities have permitted, of thofe nations whom they are to meet as com, petitors in their own and in foreign markets.

There are, however, exceptions to it; of which fome examples will be given under the next head.

The laws of the Union afford inftances of the obfervance of the policy here recommended, but it will probably be found adviseable to extend it to fome other cafes. Of a nature, bearing fome affinity to that policy, is the regulation which exempts from duty the tools and implements, as well as the books, clothes, and household furniture of foreign artifts who come to refide in the United States; an advantage already fecured to them by the laws of the Union, and which it is, in every view, proper to continue.

VII, Drawbacks of the duties which are impofed on the materials of manufactures,

It has already been observed, as a general rule, that duties on thofe materials ought, with certain exceptions, to be foreborne. Of these exceptions, three cafes occur, which may ferve as examples-one, where the material is itfelf an object of general or extenfive confump tion, and a fit and productive fource of revenue-another where a ma nufacture of a fimpler kind, the competition of which with a like do. mestic article is defired to be reftrained, partakes of the nature of a raw material, from being capable, by a further procefs, to be con

verted into a manufacture of a different kind, the introduction or growth of which is defired to be encouraged a third, where the material itself is a production of the country, and in fufficient abundance to furnish a cheap and plentiful fupply to the national manufacturers.

Under the first defcription comes the article of molaffes. It is not only a fair object of revenue, but being a fweet, it is just that the confumers of it should pay a duty as well as the confumers of fugar.

Cottons and linen in their white ftate fall under the fecond defcription-a duty upon fuch as are imported is proper to promote the domeftic manufacture of fimilar articles in the fame tate-a drawback of that duty is proper to encourage the painting and ftaining at home of thofe which are brought from abroad. When the first of these manufactures has attained fufficient maturity in a country to furnish a full fupply for the fecond, the utility of the drawback ceafes.

The article of hemp either now does or may be expected foon to exemplify the third cafe in the United States.

Where duties on the materials of manufactures are not laid for the purpose of preventing a competition with fome domeftic production, the fame reafons which recommend, as a general rule, the exemptions of thofe materials from duties, would recommend, as a like general rule, the allowance of drawbacks, in favour of the manufacturer: accordingly fuch drawbacks are familiar in countries which fyftematically purfue the bufinefs of manufactures; which furnishes an argument for the obfervance of a fimilar policy in the United States; and the idea has been adopted by the laws of the Union, in the instances of falt and molaffes. And it will be found advantageous to extend it to fome other articles.

VIII. The encouragement of new inventions and discoveries, and of the introduction into the United States of such as have been made in other countries, particularly thofe which relate to machinery.

This is among the most useful and unexceptionable of the aids which can be given to manufactures. The ufual means of that encouragement are pecuniary rewards, and, for a time, exclufive privileges. The first must be employed according to the occafion, and the utility of the invention or difcovery. For the laft, fo far as refpects" authors and inventors," provifion has been made by law. But it is defirable, in regard to improvements and fecrets of extraordinary value to be able to extend the fame benefits to introducers, as well as authors and inventors; a policy which has been practifed with advantage in other countries. Here, however, as in fome other cafes,

there

"

there is cause to regret, that the competency of the authority of the National Government to the good which might be done, is not without a question. Many aids might be given to induftry; many internal improvements of primary magnitude might be promoted, by an authority operating throughout the Union, which cannot be effected by an authority confined within the limits of a fingle ftate.

But if the Legislature of the Union cannot do all the good that might be wished, it is at leaft defireable, that all may be done which is practicable..

It is customary with manufacturing nations to prohibit, under fevere penalties, the exportation of implements and machines, which they have either invented or improved. There are already objects for a fimilar regulation in the United States; and others may be expected to occur from time to time... The adoption of this line of conduct feems to be dictated by a principle of reciprocity. Greater liberality in fuch refpects might better comport with the general spirit of the country; but a felfifh and exclufive policy in Europe will not always : permit the free indulgence of a fpirit, which would place America upon an unequal footing. As far as prohibitions tend to prevent foreign competitors from deriving the benefit of the improvements. made in the United States, they tend to increase the advantages of thofe by whom they may have been introduced, and operate as an encouragement to exertion.

IX. Judiciaus regulations for the infpection of manufa&ured commo

dities.

This is not among the leaft important of the means by which the profperity of manufactures may be promoted. It is, indeed, in many cafes, one of the moft effential-contributing to prevent frauds upon confumers at home, and exporters to foreign countries to improve the quality and preferve the character of the national manufactures; it cannot fail to aid the expeditious and advantageous fale of them, and to ferve as a guard againft fucceefful competition from other quarters. The reputation of the flour and lumber of fome ftates, and of the potash of others, has been established by an attention to this point. And the like good name might be procured for those articles, wherefoever produced, by a judicious and uniform fyftem of inspection throughout the ports of the United States. A like fyftem might alfo be extended with advantage to other commodities.

X. The facilitating of pecuniary remittances from place to placeThis is a point of confiderable moment to trade in general, and to. manufacture in particular; by rendering moré eafy the purchase of

raw

raw materials and provifions, and the payment for manufactured fupplies. A general circulation of bank paper, which is to be expected from the inftitution lately established in the United States, will be

a most valuable mean to this end.

XI. The facilitating of the transportation of commodities.

Improvements favouring this object intimately concern all the domeftic interests of a community: but they may, without impropriety, be mentioned as having an important relation to manufactures. There is, perhaps, fcarcely any thing which has been better calculated to affift the manufactures of Great Britain than the amelioration of the public roads, and the great progrefs which has been of late made in opening canals. Of the former, moft parts of the United States ftand much in need; for the latter they prefent uncommon facilities.

The fymptoms of attention to the improvement of inland navigation, which have lately appeared in fome of the United States, muft fill with pleasure every breaft warmed with a true zeal for the profperity of that country. Thefe examples, it is to be hoped, will ftimulate the exertions of the government and citizens of every state. There can certainly be no object more worthy of the cares of the local adminiftrations; and it were to be wished, that there was no doubt of the power of the national government to lend its direct aid on a comprehenfive plan.-This is one of thofe improvements which could be profecuted with more efficacy by the whole, than by any part of parts of the union. There are cafes in which the general intereft will be in danger of being facrificed to the collifion of fome fuppofed local interefts. Jealoufies, in matters of this kind, are as apt to exist as they are apt to be erro

neous.

The following remarks are fufficiently judicious and pertinent to deferve a literal quotation: "Good roads, canals, and navigable rivers, by diminishing the expence of carriage, put the remote parts of a country more nearly upon a level with those in the neighbourhood of the town. They are, upon that account, the greatest of all improvements; they encourage the cultivation of the remote, which must always be the most extenfive circle of the country; they are advantageous to the town, by breaking down the monopoly of the country in its neighbourhood; they are advantageous even to that part of the country. Though they introduce fome rival commodities into the old market, they open many new markets to its produce. Monopoly, befides, is a great enemy to good management, which can never be univerfally eftablished, but in confequence of that free and univerfal competition which forces every body to have recourfe to it for the fake of felf

defence.

defence. It is not more than fifty years ago that fome of the counties in the neighbourhood of London petitioned the parliament against the extenfion of the turnpike roads into the remoter counties. Thofe remoter counties, they pretended, from the cheapnefs of labour, would be able to fell their grafs and corn cheaper in the London market than themselves, and they would thereby reduce their rents, and ruin their cultivation. Their rents, however, have arisen, and their cultivation has been improved fince that time."

Specimens of a fpirit, fimilar to that which governed the counties here fpoken of, prefent themfelves too frequently to the eye of an impartial obferver, and render it a wish of patriotifin that the body in America, in whofe councils a local or partial fpirit is leaft likely to predominate, were at liberty to purfue and promote the general intereft in thofe instances in which there might be danger of the interference of fuch a spirit.

The foregoing are the principal of the means by which the growth of manufactures is ordinarily promoted. It is, however, not merely neceffary that the measures of government, which have a direct view to manufactures, should be calculated to affift and protect them, but that thofe which only collaterally affect them in the general courfe of the administration, should be guarded from any peculiar tendency to injure them.

There are certain fpecies of taxes which are apt to be oppreffive to different parts of the community, and, among other ill effects, have a very unfriendly afpect towards manufactures.

Such are all taxes on occupations--which proceed according to the amount of capital fuppofed to be employed in a bufinefs, or of profits fupposed to be made in it: these are unavoidably hurtful to industry. It is in vain that the evil may be endeavoured to be mitigated by leaving it, in the first instance, in the option of the party to be taxed to declare the amount of his capital or profits.

Men engaged in any trade or bufinefs have commonly weighty reafons to avoid disclosures which would expofe, with any thing like accuracy, the real ftate of their affairs. They most frequently find it better to rifque oppreffion than to avail themfelves of fo inconvenient a refuge and the confequence is, that they often fuffer oppreffion.

When the difclosure too, if made, is not definitive, but controulable by the difcretion, or, in other words, by the paffions and prejudices of the revenue officers, it is not only an ineffectual protection, but the poffibility of its being fo is an additional reafon for not reforting to it.

Allow