6 



Under this policy, each section has been largely benefitted. 

 The people of the Eastern section, extensively employed in 

 manufacturing, have received without imposition of duties a 

 supply of the great staple of the South, and have found a free 

 market for their manufactured goods in the other sections. 

 The people of the Southern section, employed in the cultivation 

 of their great and profitable staple, have been dependent u])on 

 the West for their cereals, and the people of the Western and 

 Pacific sections have found in the Eastern and Southern a 

 profitable market for their immense surplus of agricultural 

 products. 



But the operations of this system of reciprocity, as devel- 

 oped with the growth of the country and increased facilities of 

 intercommunication, have produced great changes in the indus- 

 trial pursuits of each section. 



It has tended, as do the operations of all systems for 

 promoting business intercourse between different communities, 

 to the division of labor, and to special employments. 



In an isolated community, the inevitable tendency is to an 

 increase in the varieties of productions and employments, with 

 a view to make the community self-sup])orting. But wlicn 

 the energies and productions of different communities are 

 brought into free competition in their several markets, it is 

 found that, owing to the different natural advantages of the 

 several localities, certain agricultural products, indigenous to 

 the soil of all, can be grown in some clieaper tlian in the otliers, 

 and similar differences arc found in the adaptations of the 

 several localities for the different industrial pursuits, so that 

 the tendency will be in each community to ])roduce for the 

 market only those commodities which it has superior advan- 

 tages for, and to purchase other commodities which it needs, 

 from its associate communities, which can furnish them cheaper 

 than it can produce them. 



Consequently, in discussing the condition of any one great 

 industrial pursuit in either of the large communities of the 

 country, it is important to understand and apply these truths, 

 and to inquire not only into its operations and the relations it 



