By the American System this vast power has been excited, in America, and brought into being to act in co-operation or collision with European industry. Europe acts within itself, and with America; and America acts within itself, and with Europe. The consequence is, the reduction of prices in both hemispheres. Nor is it fair to argue, from the reduction of prices in Europe, to her own presumed skill and labor, exclusively. We affect her prices, and she affects ours. This must always be the case, at least in reference to any articles as to which there is not a total non-intercourse; and if our industry, by diminishing the demand for her supplies, should produce a diminution in the price of those supplies, it would be very unfair to ascribe that reduction to her ingenuity, instead of placing it to the credit of our own skill and excited industry. brought down. The fact has been in exact conformity with this the Practical men understand very well this state of the case, whether they do or do not comprehend the causes which produce it. I have in my possession a letter from a respectable merchant, well known to me, in which he says, after complaining of the operation of the tariff of 1828, on the articles to which it applies, some of which he had imported, and that, his purchases having been made in England, before the passage of that tariff was known, it produced such an effect upon the English mar-repeal, therefore, of one protecting duty, from some one or all of these ket, that the articles could not be re-sold without loss, he adds: "for it really appears that, when additional duties are laid upon an article, it then becomes lower, instead of higher." This could not probably happen, where the supply of the foreign article did not exceed the home demand, unless, upon the supposition of the increased duty having excited or stimulated the measure of the home pro duction. Gentlemen have allowed to the manufacturing portions of the comThe great law of price is determined by supply and de-munity no peace; they have been constantly threatened with the overmand. Whatever affects either, affects the price. If throw of the American System. From the year 1820, if not from 1816, the supply is increased, the demand remaining the same, down to this time, they have been held in a condition of constant alarm and insecurity. Nothing is more prejudicial to the great interthe price declines; if the demand is increased, the supply ests of a nation than unsettled and varying policy. Although every remaining the same, the price advances; if both supply appeal to the national legislature has been responded to, in conformity and demand are undiminished, the price is stationary, and with the wishes and sentiments of the great majority of the people, the price is influenced exactly in proportion to the degree mities, as to excite hopes, on the one hand, and fears on the other. Let measures of protection have only been carried by such small majo of disturbance to the demand or supply. It is therefore a the country breathe, let its vast resources be developed, let its energies great error to suppose that an existing or new duty ne- be fully put forth, let it have tranquillity, and, my word for it, the de cessarily becomes a component element, to its exact gree of perfection in the arts which it will exhibit, will be greater than amount, of price. If the proportions of demand and supply Although some branches of our manufactures might, and, in foreign that which has been presented, astonishing as our progress has been. are varied by the duty, either in augmenting the supply, markets, now do, fearlessly contend with similar foreign fabrics, there or diminishing the demand, or vice versa, price is affect- are many others, yet in their infancy, struggling with the difficulties ed, to the extent of that variation. But the duty never be- which encompass them. We should look at the whole system, and recomes an integral part of the price, except in the instances collect that time, when we contemplate the great movements of a nation, is very different from the short period which is allotted for the where the demand and the supply remain, after the duty duration of individual life. The honourable gentleman from South is imposed, precisely what they were before, or the de- Carolina well and eloquently said, in 1824, "No great interest of any mand is increased, and the supply remains stationary. country ever yet grew up in a day; no new branch of industry can be Competition therefore, wherever existing, whether at home or come firmly and profitably established, but in a long course of years; abroad, is the parent cause of cheapness. If a high duty excites pro which attains a speedy maturity is of small value, and is destined to a every thing, indeed, great or good, is matured by slow degrees; that duction at home, and the quantity of the domestic article exceeds the amount which had been previously imported, the price will fall brief existence. It is the order of Providence, that powers gradually This accounts for an extraordinary fact stated by a senator from Mis-developed shall alone attain permanency and perfection. Thus must souri. Three cents were laid as a duty upon a pound of lead, by the it be with our national institutions and national character itself." act of 1828 I feel most sensibly, Mr. Fresident, how much I have tresspassed The price at Galena, and the other lead mines afterwards fell to one and a half cents per pound. Now it is obvious, that upon the senate. My apology is a deep and deliberate conviction, that the duty did not, in this case, enter into the price: for it was twice the the Union. But the best requital I can make, for the friendly indul the great cause under debate involves the prosperity and the destiny of amount of the price. What produced the fall? It was stimulated production at home, excited by the temptation of the exclusive possession gence which has been extended to me by the senate, and for which I of the home market. This state of things could not last. Men would shall ever retain sentiments of lasting gratitude, is to proceed, with as not continue an unprofitable pursuit; some abandoned the business, little delay as practicable, to the conclusion of a discourse which has or the total quantity produced was diminished, and living prices have not been more tedious to the senate than exhausting to me. I have been the consequence. But, break down the domestic supply, place now to consider the remaining of the two propositions which I have us again in a state of dependence on the foreign source. and can it already announced. That is, be doubted that we should ultimately have to supply ourselves at dearer rates? It is not fair to credit the foreign market with the depression of prices produced there by the influence of our competition. Let the competition be withdrawn, and their prices would instantly rise. On this subject, great mistakes are committed. I have seen some most erroneous reasoning, in a late report of Mr. Lee, of the free trade convention, in regard to the article of sugar. He calculates the total amount of brown sugar produced in the world, and then states that what is made in Louisiana is not more than two and a half per cent. of that total. Although his data may be questioned, let us assume their truth, and what might be the result? Price being determined by the proportions of supply and demand, it is evident that, when the supply exceeds the demand, the price will fall. And the fall is not always regulated by the amount of that excess. If the market at a given price, required five or fifty millions of hogsheads of sugar, a surplus of only a few hundred might materially influence the price, and diffuse itself through-perfectly the same although they would be in possession of the great out the whole mass. Add, therefore, the eighty or one hundred thousand hogsheads of Louisiana sugar to the entire mass produced in other parts of the world, and it cannot be doubted that a material reduction of the price of the article, throughout Europe and America would take place. The Louisiana sugar substituting foreign sugar, in the home market, to the amount of its annual produce, would force an equal amount of foreign sugar into other markets, which being glurted, the price would necessarily decline, and this decline of price would press portions of the foreign sugar into competition, in the United States, with Louisiana sugar, the price of which would also be 2dly. That, under the operation of the American System, the products of our agriculture command a higher pr ce than they would do without it. by the creation of a home market; and, by the auginentation of wealth produced by manufacturing industry, which enlarges our powers of consumption both of domestic and foreign articles. The importance of the home market is among the established maxims which are universally recognised by all writers and all men. How ever some may differ as to the relative advantages of the foreign and the home market, none deny to the latter great value and high consideration. It is nearer to us; beyond the control of foreign legisla tion; and undisturbed by those vicissitudes to which all inter-national intercourse is more or less exposed. The most stupid are sensible of the benefit of a residence in the vicinity of a large manufactory, or a market town of a go d road, or of a navigable stream, which connects their farms with some great capital. If the pursuits of all men were est abundance of the particular produce of their industry, they might, at the same time, be in extreme want of other necessary articles of hu man subsistence. The uniformity of the general occupation would preclude all exchanges, all commerce. It is only in the diversity of the vocations of the members of a community that the means can be found for those salutary exchanges which conduce to the general pros perity. And the greater that diversity, the more extensive and the more animating is the circle of exchange. Even if foreign markets. were freely and widely open to the reception of our agricultural pro duce, from its bulky nature, and the distance of the interior, and the more. | On dangers of the ocean, large portions of it could never profitably reach the foreign market. But, let us quit this field of theory, clear as it is, and look at the practical operation of the system of protection, begin ning with the most valuable staple of our agriculture. In considering this staple, the first circumstance that excites our surprise is the rapidity with which the amount of it has annually increased. Does not this fact, however, demonstrate that the cultivation of it could not have been so very unprofitable! If the business were ruinous, would more and more have annually engaged in it? The quantity in 1816 was eighty-one millions of pounds; in 1826 two hundred and four millions; and, in 1830, near three hundred millions! The ground of greatest surprise is, that it has been able to sustain even its present price with such an enomous augisentation of quantity. It could not have done it but for the combined operation of three causes, by which the consumption of cotton fabrics has been greatly extended, in consequence of their reduced prices: 1st, competition; 2d, the improvement of labor-saving machinery: anderful nation; but haughty, arrogant, and supercilious. Not more 3dly, the low price of the raw material. The crop of 1819, amounting to eighty-eight millions of pounds, produced twenty-one millions of dollars; the crop of 1823, when the amount was swelled to one hundred and seventy-four milions, (almost double that of 1819) pro duced a less sum, by more than half a million of dollars; and the crop of 1824, amounting to thirty millions of pounds less than that of the preceding year, produced a million and a half of dollars If there be any foundation for the (stablished law of price, supply, and demand, ought not the fact of this great increase of the supply to account, satisfactorily, for the alleged low price of cotton? Is it necessary to look beyond that single fact to the tariff-to the diminished produce of the mines furnishing the precious metals, or to any uther cause, for the solution? This subject is well understood in the south: and although I cannot approve the practice which has been introduced of quoting authority, and still less the authority of newspapers, fir favorite theories, I must ask permission of the senate to read an article from a southern newspaper* [Hore general Hayne requested Mr. Clay to give the name of the authority, that it might appear whether it was Lot some other than a southern paper expres sing southern sentiments Mr. Clay stated that it was from the Charleston City Gazette, one he believed, of the oldest and most respectable prints in that city, although he was not sure what might be its sentiments on the question which at present divides the people of South Carolina.] The article comprises a full explanation of the low price of cotton, and assigns to it its true cause-increased production. Let us suppose that the home demand for cotton, which has been created by the American system, were to cease, and that the 200,000+ bakes, which the home market now absorbs, were thrown into the glut ted mark ts of foreign countries, would not the effect inevitably be in produce a further and great reduction in the price of the article? If there be any truth in the facts and principles which I have before stated and endeavoured to illustrate, it cannot be doubted that the existence of American manufactures hos tended to increase the demand, and extend the consumption of the raw material; and that, but for this increased demand, the price of the article would have fallen, possibly one half lower than it now is. The error of the opposite argument is, in assuming one thing, which, being denied, the whole fails; that is, it assumes, that the whole labor of the United States would be profitably employed without manufactures. Now, the truth is, teat the system excites and creates labor, and this labor creates weath, and this new wealth communicates additional ability to consume. which acts on all the objects contributing to human confort and enjoyment. The amount of cotton imported into the two ports of Boston and Providence alone (during the last year, and it was imported exclusively for the home manufacture) was 109,517 bales. on bread stuffs, are prohibitory, except in times of dearth. On ricet the duty is fifteen shillings sterling per hundred weight, being more than one hundred per cent. On manufactured tobacco, it is nine shillings sterling per pound, or about two thousand per cent. leaf tobacco three shillings per pound, or one thousand two hundred per cent. On lumber and some other articles. they are from four hundred to 1,500 per cent. more than on similar articles imported from British colonies, In the British West Indies, the duty on beer, pork, hams and bacon, is twelve shilings sterling per hundred, more than one hundred per cent, on the first cost of beef and pork in the western states. And yet Great Britain is the power in whose behalf we are called upon to legislate so that we may enable her to purchase our conton! Great Britain, that thinks only of herself in her own legislation! When have we experienced justice much less favor at her hands? When did she shape her gislation in reference to the interests of any foreign power? She is a great, opulent and poss separated from the rest of the world by the sea that girts her island, than she is separated in feeling, sympathy, or friendly consideration of their welfare. Gentlemen, in supposing it impracticable that we should successfully compete with her in manufactures, do injustice to the skill and enterprise of their own country. Gallant, as Great Britain undoubtedly is, we have gloriously contended with her, man to man, gun to gun, ship to ship, fleet to fleet, and army to army. And I have no doubt we are destined to achieve equal success in the more useful, if not nobler contest for superiority in the arts of civil life. I could extend and dwell on the long list of articles-the hemp, iron, lead, coal, and other jems, for which a demand is created in the home market, by the operation of the American system: but I should exhaust the patience of the senate. Where, where, should we find a market for all these articles if it did not exist at home? What would be the condition of the largest portion of our prople and of the territory, if this home market were annihilated? How could they be supplied with objects of prime necessity? What would not be the certain and inevitable decline in the price of all these articles, but for the home market? And allow me, Mr. president to say, that, of all the agricultural parts of the United States which are benefitted by the operation of this system, none are equally so with those which border the Chesapeake bay, the lower parts of North Carolina, Virginia, a d the two shores of Maryland. Their facilities of trans portation and proximity to the north give them decided advantages. But, if all this reasoning were totally fallacious-if the price of manufactured articles were really higher, under the American system, than without it, I should still are ue that high or low prices were themselves relative-relative to the ability to pay them. It is in vain to tempt, to tantalize us with the lower prices of European fabrics than our own, if we have nothing wherewith to purchase them. If, by the home exchanges, we can be supplied with necessary, even if they are dearer and worse, articles of American production than the foreign, it is better than not to be supplied at all. And how would the large portion of our country which I have described, be supplied, but for the home exchanges? A poor people, destitute of wealth or of exchangeable commodities, has nothing to purchase foreign fabrics. To them they are equally beyond their reach, whether their cost be a dollar or a guinea. It is in this view of the matter that Great Britain, by her vast wealth-her excited and protected industry -is enabled to bear a burthen of taxation which, when compared to that of other nations, appears enormous; but which, when her im mense riches are compared to theirs, is light and trivial. tleman from South Carolina has drawn a lively and flattering picture of our coasts, bays, rivers, and harbors; and he argues that these pro claimed the design of Providence, that we should be a commercial On passing from that article to others of our agricultural produc- people. I agree with him. We differ only as to the means. He would tions, we shall find not less gratifying facts. The total quantity of cherish the foreign, and neglect the internal trade. I would foster flour imported into Boston, during the same year, was 284 504 bar both. What is navigation without ships, or ships without cargoes? rels and 3,955 half barres; of which, there were from Virginia, By penetrating the bosoms of our mountains, and extracting from Georgetown and Alexandria, 114,222 barre Is; of Indian corn, 631,131 them their precious treasures; by cultivating the earth, and securing bushels; of oats. 259 809 bushels of rye, about 50,000 bushel; and of a home market for its rich and abundant products by employing the shorts 33,489 bushels. Into the port of Providence, 71.369 barrels water power with which we are blessed; by stimulating and protect of flour; 216.662 bushels of Indian corn, and 7.772 bushels of rye,ing our native industry, in all its forms; we shall but nourish and proAnd there were discharged at the port of Philadelphia, 420.353 mote the prosperity of commerce, foreign and domestic. bushe's of Indian corn; 201,878 bush is of wheat, and 110,557 bushI have hitherto considered the question in reference only to a state els of rye and barley: There were slaughtered in Boston, during of peace; but a season of war ought not to he entirely overlooked. the same year, 1831. (the only northern city from which I have ob- We have enjoyed near twenty years of peace; but who can tell when tained return) 33,922 beef cattle; 15,400 stores; 81,153 sheep, and the storm of war shall again break forth? Have we forgotten, so 26,871 swine. It is confidently believed that there is not a less quan soon, the privations to which, not merely our brave soldiers and our tity of southern flour consumad at the north than 8:0,000 bariels- gallant tars were subjected, but the whole community, during the a greater amount, probably, than is shipped to all the foreign marlast war, for the want of absolute necessaries? To what an enormous kets of the world together. What would be the condition of the farming country of the Uni-price they rose? And how inadequate the supply was, at any prie? The statesman, who justly elevates his views, will look behind, as ted States-of all that portion which lies north, east, and west of well as forward, and at the existing state of things; and he will gra James river, including a large part of North Carolina, if a home market did not exist for this immense amount of agricultural produce eies which may arise in the republic. duate the policy, which he recomin nds, to all the probable exigen Taking this comprehensive Without that market, where could it be sold? In foreign markets? range, it would be easy to show that the higher prices of peace, if If their restrictive laws did not exist, their capacity would not enable prices were higher in peace, were more than compensated by the them to purchase and consume this vast addition to their pie lower prices of war, during which supplies of all essential articles are sent supplies, which must be thrown in, or thrown away, but indispensable to its vigorous, effectual, and glorious prosecution. I for the home market. But their laws exclude us from their mar conclude this part of the argument with the hope that my humble exkets. I shall content myself by calling the attention of the senate to ertions have not been altogether unsuccessful in showingGreat Britain only. The duties in the ports of the united kingdom, See appendix 1, for the article referred to. The gen 1. That the policy which we have been considering ought to continue to be regarded as the genuine American system. 2. That the free trade systein, which is proposed as its substitute, Mr. Clay stated that he assumed the quantity which was gene-ought really to be considered as the British colonial system. rally computed, but he believed it much greater, and subsequent information justifies his belief. It appears, from the report of the cotton committee, appointed by the New York convention, that partin/ returns show a consumption of upwards of 280,00 bales; that the cotton manufacture employs nearly 40,000 females, and about 5,000 children; that the total d'pendents on it are 131.489; that the annual wages paid are 812,155.723; the annual value of its products, 832 36 76, the capital, 844,914,984; the number of mills, 795; of spindles, 1,246,503; and of cloth made. 260,461,990 yards. This statement does not comprehend the western manufactures. 3. That the American system is beneficial to all parts of the Union, and absolutely necessary to much the larger portion. 4. That the price of the great staple of cotton, and of all our chief productions of agriculture, has been sustained and upheld, and a decline averted by the protective system. 5. That, if the foreign demand for cotton has been at all diminish ed, by the operation of that system, the diminution has been more than compensated in the additional demand created at home. 6. That the constant tendency of the system, by creating compet tion among ourselves, and between American and European indus try, reciprocally acting upon each other, is to reduce prices of manufactured objects. 7. That, in point of fact, objects within the scope of the policy of protection have greatly fallen in price. 8. Ibat, if, in a season of peace, these benefits are experienced, in a season of war, when the foreign supply might be cut off, they would be much more extensively felt. 9. And, finally, that the substitution of the British colonial system for the American system, without benefiting any section of the Union, by subjecting us to a foreign 1 gislation, regulated by foreign interests, would lead to the prostration of our manufactures, general impoverishment, and ultimate uin. by it? In estimating the degree of peril which may be incident to two opposite courses of human policy, the statesman would be shortsighted who should content himself with viewing only the evils, real or imaginary, which belong to that course which is in practical ope ration. He should lift himself up to the contemplation of those greater and more cer ain dangers which might inevitably attend the adoption of the alternative course. What would be the condition of this Union, if Pennsylvania. and New York, those mammoth mem bers of our confederacy, were firmly persuaded that their industry was paralysed, and their rosperity blighted. by the enforcement of the Bit sh colonial system, under the delusive name of free trade? They are now tranquil. and happy and contented, conscious of their And now, Mr. president, I have to make a few observations on a welfare, and feeling a salutary and rapid circulation of the products delicate subject, which I approach with all the resp et that is due to of home manufactures and home industry throughout all their great its serious and grave nature. They have not, indeed, been rendered arteries. But let that be checked, let them feel that a foreign system necessary by the speech of the gentleman from South Carolina, is to predominate, and the sources of their subsistence and comfort whose forbearance to notice the topic was commendable, as his argu-dried up; let New England and the west, and the middle states, all ment, throughout, was characterized by an ability and dignity worthy feel that they too are the victions of a mistaken policy, and let these of him, and of the senate. The gentleman made one declaration, vast portions of our country despair of any favorable change, and which might possibly be misinterpreted, and, I submit to him, whe- then, indeed, might we tremble for the continuance and safety of this ther an explanation of it be not proper. The declaration, as report- Union! ed in his printed speech, is, "the instinct of self interest might have And need I remind you, sir, that this dereliction of the duty of taught us an easier way of relieving ourselves from this oppression protecting our domestic industry, and abandonment of it to the fate It wanted but the will to have supplied ourselves with every article of foreign k gislation would be directly at war with leading conside embraced in the protective system, free of duty, without any other rations which prompted the adoption of the present constitution? participation on our part than a simple consent to receive them," The states, respectively, surrendered to the general government the there general Hayne rose, and remarked that the passages, which im whole power of laying imposts on foreign goods. They stripped mediately preceded and followed the paragraph cited, he thought, themselves of all power to protect their own manufactures, by the plainly indicated his meaning, which related to evasions of the sys- most efficacious means of Cncouragement-the imposition of duties tem, by illicit introduction of goods, which they were not disposed to on rival foreign fabrics. Did they create that great trust? Did they countenance in South Carolina. I am happy to hear this expana- voluntarily subject themselves to this self-restriction, that the power tion. But, sir, it is impossible to conceal from our view the facts that should remain in the federal government inactive, unexecuted, and there is a great excitement in South Carolina; that the protective lifeless? Mr. Madison, at the conincncement of the government, system is openly and violently denounced in popular meetings; and told you otherwise. In discussing at that early period this very sub that the legislature itself has declared its purpose of resorting to coun-jeet, he declared that a faluse to exercise this power would be a teracting measures-a suspension of which has only been submitted "fraud" upon the northern states, to which may now be added the to, for the purpose of allowing congress time to retrace its steps. middle and western states. With respect to this Union, Mr. President, the truth cannot be too generally proclaimed, nor too strongly incoleated, that it is necessary to the whole and to all the parts--necessaay to those parts indeed, in different degrees, but vitally necessary to each; and that threats to disturb or dissolve it, coming from any of the parts, would be quite as indiscreet and improper, as would be threats from the residue to exclude those parts from the pale of its benefits. The great princi ple, which lies at the foundation of all free governments, is, that the majority must govern; from which there is or can be no appeal but to the sword. Ihat majority ought to govern wisely, equitably, moderately, and constitutionally, but govern it must, subject only to that terrible appeal. If ever one, or several states, being a minority, can, by menacing a dissolution of the Union, succeed in forming an abandonment of great measures deemed essential to the interests and prosperity of the whole, the Union, from that moment, is prac tically gone. It may linger on, in form and name, but its vital spirit has fled forever! Entertaining these deliberate opinions, I would entreat the patriotie people of South Carolina-the land of Marion, Sumpter, and Pickens--of Rutledge, Laurens, the Pinckneys, and Lowndes-of living and present names, which I would mention if they were not living or present--to pause, solemnly pause! and con template the frightful precipice which lies directly before them. Tot now, the majority is for it. retreat may be painful and mortifying to their gallantry and pride, but it is to retreat to the Union, to safety, and to those brethren, with whom, or with whose ancestors, they, or their ancestors, have won, on fields of glory, imperishable renown. ́io advance, is to rush on certain and inevitable disgrace and destruction. We have been told of deserted castles, of uninhabited balls, and of mansions, once the seats of opulence and hospitality now abandoned and mouldering in ruins. I never had the honor of being in South Carolina; but I have heard and read of the stories of its chivalry, and of is generous and open-hearted liberality. I have heard, too, of the struggles for power between the lower and upper country. The same causes which existed in Virginia, with which I have been aequainted, I presume, have had their influence in Carolina. In whose hands now are the once proud stats of Westover Curl, Maycox, Shirley, and others, on James river, and in lower Virginia? Under the operation of laws, abolishing the principle of primogeniture, and providing the equitable rule of an equal distribution of estates among those in equal degree of consanguinity, they have passed into other and stranger hands. Some of the descendants of illustrious families have gone to the far west, whilst others. lingering behind, have contrasted their present condition with that of their venerated ancestors. They behold themselves excluded from their fathers houses, now in the hands of those who were once their fathers' overseers, or sinking into decay; their imaginations paint ancient renown, the fading honors of their name, glories gone by; too poor to live, too proud to work, too high-minded and honorable to resort to ignoble means of acquisition, brave, daring, chivalrous, what can be the eause of their present unhappy state? The accursed" tariff presents itself to their excited imaginations, and they blindly rush into the ranks of those who, unfurling the banner of nullification, would place a state upon its sovereignty! [Governor Miller asked to what expression of Mr. Madison's opi nion Me Clay referred; and Mr. C. replied, his opinion, expressed in the house of representatives, in 1789, as reported in Lloyd's congressional debates.] has in the affections of the people of the United States. Gentlemen are greatly deceived as to the hold which this system They repre snt that it is the policy of New England, and that she is most benefitted by it steady, most unanimous, and most determined in its support. it is If there be any part of this Union which has been most Pennsylvania. Why is not that powerful state attacked? Why pass her over, and aim the blow at New England? New England came, reluctantly, into the policy. In 1824 a majority of her delegation was opposed to it. From the largest state of New England there was but a solitary vote in favor of the bill. That enterprising people settled. They supposed this was fixed, and they submitted to the decan readily accommodate their industry to any policy, provided it be And the progress of public opinion has kept crees of government. Now, all pace with the developement of the benefits of the system. still voice) is in favor of the system. In 1824 all Maryland was against New England, at least in this house, with the exception of one small, hen. Louisiana. with one exception, posed. The march of public sentiment is to the South. Virginia will be the was opposed to it: now, without any exception, she is in favor of it. next convert; and, in less than seven years, if there be no obstacles from political causes, or prejudices industriously instilled, the majo rity of eastern Virginia will be, as the majority of western Virginia now is, in favor of the American System. North Carolina will fol low later, but not less certainly. Eastern Tennessee is now in favor of the system. And, finally, its doctrines will pervade the whole Union, and the wonder will be, that they ever should have been op I have now to proceed to notice some objections which have been urged against the resolution under consideration. With respect to ed as he has intimated his purpose to modify it, I shall to bear, for the amendment, which the gentleman fom South Carolina had offerthe present to comment upon it It is commended that the resolution proposes the repeal of duties on luxuries leaving those on necessaries to remain, and that it will, therefore relieve the rich, without lessening the burthens of the poor. And the gentleman from South Carolina has carefully selected, for ludicrous effet, a number of the that this exhibition of the gentleman is not in keeping with the canunprotect. d articles. cosmetics, perfumes, oranges, &c. I must say, dor which he has generally displayed; that he knows very well that the duties upon these articles are trifling, and that it is of little conse. American and the foreign, comprehend some articles which may be quence whether they are repealed or retained. Both systems the deemed luxuries. The senate knows that the unprotected arucles which yield the pricipal part of the revenue, with which this measure would dispense, are coffee, tea, spices, wines, and silks. these articles, wines and silks alone can be pronounced to be luxuries; and, as to wines, we have already ratified a treaty, not yet pronaul gated, by which the duties on thein are to be considerably reduced. If the universality of the use of objects of consumption determines their The danger to our Union does not lie on the side of persistence classification, coffee, tea. and spices, in the present condition of civiin the American System, but on that of its abandonment. If, as 1lized society may be considered necessaries. Even if they were luxhave supposed and believe, the inhabitants of all north and east of uries, why should not the poor, by cheapening their prices, if that James river, and all west of the mountains, including Louisiana, are deeply interested in the preservation of that system, would they be be allowed to tie a silk handkerchief on his neck, occasionally regale can be effected, be allowed to use them? Why should not a poor man reconciled to its overthrow? Can it be expected that two thirds if himself with a glass of cheap French wine. or present his wife or not three-fourths, of the people of the United States would consent daughter with a silk gown, to be worn on Sabbath or gal days? I am to the destruction of a policy, believed to be indispensably necessary quite sure that I do not misconstrue the feelings of the gentleman's to their prosperity? When, too the sacrifice is made at the instance heart, in supposing that he would be happy to see the poor, as well as of a single interest, which they verdly believe will not be promoted the rich, moderately indulging themselves in these innocent gratifications. For one, I am delighted to see the condition of the poor attracting the consideration of the opponents of the tariff. It is for the great body of the people, and especially for the poor that I have ever supported the American System. It affords thein profitable em As to Shirley, Mr Clay acknowledges his mistake, made in the warmth of debate. It is yet the abode of the respectable and hospitable descendants of its former opulent proprietor. Of all ployment, and supplies the means of comfortable subsistence. It secures to them, certainly, necessaries of life, manufactured at home and places within their reach, and enables them to acquire, a reasonable share of foreign luxuries; whist the system of gentlemen promises them necessaries made in foreign countries, and which are beyond their power, and denies to them luxuries, which they would possess no means to purchase. postponement of any reduction of the amount of the revenue, at thes session, must however give rise to that very accumulation; and it is, therefore, that I cannot perceive the utility of the postponement. We are told by the gentleman from Maryland, that offers have been made to the secretary of the treasury to exchange three per cents. at their market price of 96 per cent. for the bank stock of the government at its market price, which is about 126, and he thinks it The constant complaint of South Carolina against the tariff, is, would be wise to accept them. If the charter of the bank is renewthat it checks importations, and disables foreign powers from pur ed that stock will be probably worth much more than its present chasing the agricultural productions of the United States. The efprice; if not renewed, much less. Would it be fair in government, feet of the resolution will be to increase importations, not so much, whilst the question is pending and undecided, to make such an exit is true, from Great Britain, as from other powers, but not the less change? The difference in value between a stock bearing three per acceptable on that account. It is a misfortune that so large a porcent, and one bearing seven per cent.. must be really much greater tion of our foreign commerce concentrates in one nation; it subjects than the difference between 96 and 126 per cent. Supposing them to us too much to the legislation and the policy of that nation, and ex- be perpetual annuities the one would be worth more than twice the poses us to the influence of her numerous agens, factors and mer- value of the other. But my objection to the treasury plan is, that it chants. And it is not among the smallest recommendations of the is not necessary to execute it-to continue these duties, as the secretameasure before the senate, that its tendency will be to expand our ry proposes. The secretary has a debt of twenty-four millions to commerce with France, our great revolutionary ally-the land of our pay; he has, from the accruing receipts of this year, fourteen milLafayette. There is much greater probability, also, of an enlarge lions, and we are now told by the senator from Maryland, that this ment of the present demand for cotton, in France, than in Great sum of fourteen millions is exclusive of any of the duties accruing Britain. France engaged later in the manufacture of cotton, and this year. He proposes to raise eight millions by sale of the bank has made, therefore, less progress. She has, moreover, no colonies stock, and to anticipate, from the venue receivable next year, two producing the article in abundance, whose industry she might be millions more. These three items, then, of fourteen millions, eight tempted to encourage. millions, and two millions, make up the sum required, of twentyfour millions, without the aid of the duties to which the resolution relates. The honorable gentleman from Maryland. (general Smith) by his reply to a speech which, on the opening of the subject of this reso lution. I had occasion to make, has rendered it necessary that I should take some notice of his observations. The honorable gentleman stated that he had been accused of partiality to the manufacturing interest. Never was there a more groundless and malicious charge pre ferred against a calumniated man. Since this question has be n agigated in the public councils, although I have often heard from him professions of attachment to this branch of industry, I have never known any member a more uniform, determined, and uncom promising opponent of them, than the honorable senator has invariably been And if, hereafter, the calumny should be repeated, of his friendship to the American system, I shall be ready to furnish to him, in the most solemn manner. my testimony to his innocence. The honorable gentleman supposed that I had advanced the idea that the permanent revenue of this country should be fixed at eighteen millions of dollars. Certainly I had no intention to announce such an opinion, nor do my expressions, fairly interpreted, imply it. I stated, on the occasion referred to, that, estimating the ordinary revenue of the country at twenty-five millions, and the amount of the duties on the unprotected articles proposed to be repealed by the resolution, at seven millions, the latter sum taken from the former would leave eighteen. But I did not in imate any belief that the revenue of the country ought, for the future, to be permanently fixed at that or any other precise sum. I stated that, after having effected so great a reduction, we might pause, cautiously survey the whole ground, and deliberately determine upon other measures of reduction, some of which I indicated. And I now say, preserve the protective system in full vigor; give us the proceeds of the public domain for internal improvements, or, if you please, partly, for that object and partly for the removal of the free blacks, with their own consent, from the United States; and for one. I have no objection to the reduction of the public revenue to fifteen, to thirteen, or even to nine millions of dollars. benefiit for the navy, The gentleman from Maryland insists that the general government for internal improvements; and, as to fortifications, he contends that has been liberal towards the west in its appropriations of puplic lands the expenditures near the mouth of the Mississippi, are for its especial Illinois, and Alabama, have been liberal; but it is not to be overlooked, The appropriations of land to the states of Ohio, Indiana, that the general government is itself the greatest proprietor of land, and that a tendency of the improvements, which these appropriations were to effect, is to increase the value of the unsold public domain. The erection of the fortifications for the defence of Louisiana was highly proper; but the gentlemen might as well place to the account of the west, the disbursements for the fortifications intended to defend produce is sent, and in the security of all of which, the western people Baltimore, Philadelphia, and New York, to all which capitals western feel a lively interest. They do not object to expenditures for the army, for fortifications, or for any other defensive or cominercial object on the Atlantic, but they do think that their condition ought also to receive friendly attention from the general government. With respect to the state of Kentucky not one cent of money, or one acre her limits. The subscription to the stock of the canal at Louisville was of land, has been applied to any object of internal improvement within for an object in which many states were interested. The senator from Maryland complains that he has been unable to obtain any aid for the rail road which the enterprise of Baltimore has projected, and, in part, and highly honorable, and it deserves national encouragement. But executed. That was a great work, the conception of which was bold how has the committee of roads and canals, at this session, been con stituted? The senator from Maryland possessed a brief authority to organize it, and, if I am not misinformed, a majority of the members composing it, appointed by him, are opposed both to the constitutionality of the power and the expediency of exercising it. will benefit all classes: the farmer, the professional man, the merchant, the manufacturer, the mechanic; and the cotton planter more than all. A few months ago, there was no diversity of opinion as to the expediency of this measure. All, then, seemed to unite in the selection of these objects for a repeal of duties which were not produced within the country. Such a repeal did not touch our domestic industry, violated no principle, offended no prejudice. And now, sir, I would address a few words to the friends of the AmeIn regard to the scheme of the secretary of the treasury for paying rican system in the senate. The revenue must, ought to be reduced. off the whole of the remaining public debt, by the 4th day of March, The country will not, after, by the payment of the public debt, ten or 1833, including the three per cent, and for that purpose, selling the twelve millions of dollars become unnecessary, bear such an annual bank stock, I had remarked that, with the exception of the three per surplus. Its distribution would form a subject of perpetual contencent.. there was not more than about four millions of dollars of the tion. Some of the opponents of the system understand the stratagem debt due and payable within this year; that, to meet this, the secreta- by which to attack it, and are shaping their course accordingly. It is ry had stated, in his annual report, that the treasury would have. to erush the system by the accumulation of revenue, and by the effort from the receipts of this year, fourteen millions of dollars, applicable to persuade the people that they are unnecessarily taxed, whilst those to the principal of the debt; that I did not perceive any urgency for would really tax them who would break up the native sources of suppaying off the three per cent. by the precise day suggested; and ply and render them dependent upon the foreign. But the revenue that there was no necessity, according to the plans of the treasury, ought to be reduced, so as to accommodate it to the fact of the payassuming them to be expedient and proper, to postpone the repealment of the public debt. And the alternative is or may be, to preserve of the duties on unprotected articles. The gentleman, from Mary the protecting system and repeal the duties on the unprotected articles, land imputed to me ignorance of the act of the 24th April, 1830, ac- or to preserve the duties on unprotected articles, and endanger, if not cording to which, in his opinion the secretary was olbiged to pur-destroy, the System. Let us then adopt the measure before us which chase the three per cent. On what ground the senator supposed I was ignorant of that act, he has not stated. Although when it was passed. I was at Ashland, 1 assure him that I was not there altogether uninformed of what was passing in the world. I regularly received the Register of my excellent friend (Mr. Niles) published in Baltimore, the National Intelligencer, and other papers. There are two errors to which gentlemen are sometimes liable; one is to magnify the amount of knowledge which they possess themselves, and the se cond is to depreciate that which others have acquired. And will the gentleman from Maryland excuse me for thinking that no man is more prone to commit both errors than himself? I will not say that he is ignorant of the true meaning of the act of 1830. but I certainly place a different construction upon it from what he does. It does not oblige the secretary of the treasury, or rather the commissioners of the sinking fund, to apply the surplus of any year to the purchase of the three per cent, stock particularly, but leaves them at liberty to apply such surplus to the purchase of any portion of the publie debt, at such rates as, in their opinion, may be advantageous to the United States." This vests a discretionary authority, to be exercised under official responsibility. And if any secretary of the treasury, when he had the option of purchasing a portion of the debt, bearing a higher rate of interest, at par or about par, were to execute the act by purchasing the three per cents, at its present price, he would merit impeachment. Undoubtedly a state of fact may exist, such as there being no public debt remaining to be paid but the three per cent, stock, with a surplus in the treasury, idle and unproductive, in which it might be expedient to apply that surplus to the reimburse ment of the three per cents. But, whilst the interest of money is at a greater rate than three per cent. it would not. I think, be wise ot produce an accumulation of public treasure for such a purpose. The Can we not all, whatever may be our favourite theories, cordially unite on this eutral gound? When that is occupied, let us look be yond it, and see if any thing can be done, in the field of protection, to modify, to improve it, or to satisfy those who are opposed to the system. Our southern brethren believe that it is injurious to them, and ask its repeal. We believe that its abandonment will be prejudicial to them, and ruinous to every other section of the Union. However strong their convictions may be, they are not stronger than ours. Between the points of the preservation of the system and its absolute repeal, there is no principle of union. If it can be shown to operate immo d rately on any quarter; if the measure of protection to any article can be demonstrated to be undue and inordinate, it would be the duty of congress to interpose and apply a remedy. And none will co-operate more heartily than I shall, in the performance of that duty. k is quite probable that beneficial modifications of the system may be made, without impairing its efficacy. But to make it fulfil the purposes of its institution, the measu e of protection ought to be adequate. If it be not, all interests will be injuriously affected. The manufac turer, crippled in his exertions, will produce less perfect and dearer fabrics, and the consumer will feel the consequence. This is the spi rit, and these are the principles ouly, on which, it seems to me, that a settlement of this great question can be made, satisfactorily to all parts of our Union. FOURTH SERIES.] No. 2 VOL. VI. BALTIMORE, MARCH 10, 1832. [VOL. XLII. WHOLE NO. 1,068. THE PAST THE PRESENT FOR THE FUTURE. EDITED, PRINTED AND PUBLISHED BY H. NILES, AT $5 PER ANNUM, PAYABLE IN ADVANCE. A multitude of articles are postponed for, com-ing and mechanical industry of the latter to the former.* pelled last week to omit the journal of the proceed-The freight paid for cotton from New Orleans to Boston, ings of congress because of the insertion of Mr Clay's speech, and now to give the appendix to it, the usual space for general matter has not been allowed; and besides, we thought it due to the Register to insert Mr. Clayton's specifications against the bank of the United States, and present a brief abstract of Mr. McDuffie's remarks on them shewing the chief points made by him. The title page and index for the last volume accompanies the present number. In binding the volume, the four sheets of the "ADDENDUM," containing reports of some of the committees of the New York convention, are to be attached. For editorial or miscellaneous articles see page 18. APPENDIX TO MR. CLAY'S SPEECH. A the last year, 1831, for the supply of the factories of Lowell, only, was over 52,000 dollars. The number of vessels employed, including the repeated voyages, which entered into and departed from each state and territory during the year 1830, was 4,745; whose tonnage entered was 965,227, and the departed 971,760, employing 43,756 seamen. This can only include such vessels as are actually required to enter and clear at the custom houses; therefore, does not present more than half that trade. A view to the tonnage of the United States from 1815 to 1829. .53,331,574 1815 854,294.74 1823 .50,184,229 1816 1824 ..52,019,730 1,225,184.20 2d period. Internal commerce with the western states. 1819 612,930.44 647,821.17 1,260,751.60 1825 (Erie canal finished).. .$58,425,395 1,280,166.24 1826 .64,803,050 1,298,958.70 1827 .72,617,770 1,324,699.17 1828 .77,139,880 1,336,565.68 1829 .76,835,580 1824 669,972.60 719,190.37 1,389,163.02 1830 (part of the Ohio canal finished). ..87,603,580 796,212.68 1,534,190.83 Increase in seven years........ .$43,706,755 ..95,716,485 C 1828 812,619.39 928,772.50 1,620,607.78 1,741,391.87 [This is the summary report and estimates of the com1,818,490.57mittee of the New York convention, on the manufactures As the tonnage account was corrected at the treasury in of wool, published in the addendum to the last volume of 1829, the following deductions are to be made from that the REGISTER, and it is unnecessary, (for us) to do more year. than give its results. The apparent tonnage, as above, As there are no data to ascertain when the correction should have been made, the only mode of showing the comparative amount of tonnage, or rather the gradual increase between 1815 and 1829, is by continuing the error to 1829, which had been included in the preceding years. But we want the returns of 1830 and 1831, to exhibit the prosperous state of the coasting trade, during which periods it has rapidly advanced, and during the year 1831, more vessels for the foreign and coasting trade have been built, than in any year since the adoption of the constitution. This great change has been effected in the coasting trade, by the extension of manufactories, viz. ships and brigs have been required, instead of schooners and sloops, to transport cotton, rice, tobacco, flour, and the other great staples of agricultural industry, from the southern to the middle and northern states, and to convey the products of manufacturVOL. XLI.-BIG. 2. [That the crop of 1831 was worth That the fixed and floating capital Capital in the growth and manuf. of wool $145,000,000 subsisted, by the manufacture of wool; and That to supply these with food, &c. requires |