No. 216.] 495 



Another duty of the Institute is, the promotion and encouragement 

 of domestic industry in manufactures. More than half a century 

 ago, the Congress of the United States commenced a system of pro- 

 tecting American agriculture, commerce and manufactures. Of the 

 products of agriculture we received but little from abroad that could 

 come in competition with our own in our own market; but such as 

 could were made subject to such duties as afforded sufficient encour- 

 agement to our own produce at that time. 



As to our commerce, it was completely controlled by British capi- 

 talists. The greater part of our carrying and even coasting trade 

 was in their hands, making our condition worse than it was while 

 we were colonies. This was not to be tolerated. On the 20th of 

 July, 1789, Congress passed an act for the purpose of encouraging 

 and protecting our tonnage and navigation against foreign competition,, 

 by high duties. In this case the duties were not imposed for revenue, 

 with incidental protection to our shipping interest, for they were pro- 

 hibitory. Protection alone was the object of the law. Its success 

 was complete. Fortunately for the country, the revenue standard 

 had not been discovered, or rather invented at this time. 



With regard to protecting manufactures, Congress proceeded with 

 more caution. It was feared that there was not sufficient skill and 

 capital in the United States to enable us to contend successfully in 

 this branch of industry with the skill, capital and cheap labor of 

 Europe. The importing merchants in our commercial cities, a great 

 portion of them British subjects, or in partnership with British manu- 

 tacturing houses, were from interest opposed to all American manu- 

 factures. There was still among us a lurking and strong partiality 

 for British manufactures, particularly among those who were in favor 

 of British principles, fashions and distinctions in society. Such 

 were opposed, frbm Jolly, to American manufactures. Even as late 

 as the war of 1812, any one of our fashionable dandies would have 

 been ashamed of being caught in the fact of wearing a hat, coat or 

 breeches of American manufacture. These, with many other circum- 

 stances, co-operating with the whole weight of British influence, 

 had a decided effect in retarding the early progress of domestic 

 manufactures. 



On the other hand, the report of Secretary Hamilton upon this sub- 

 ject has proved the vital importance of establishing. and supporting 

 American manu'actures. And Mr. Jefferson, when Secretary of 

 State, recommended the imposition of duties upon the products of 



