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[278](971){192}

Alexander Hamilton

REPORT ON MANUA!TURE"#E!EM$ER %& 1791

[Pa'e n(m)er* +rom Selected Writings]

(Page numbers fromAnnals of Congress)

{Pa'e n(m)er* +rom Works of Hamilton}

",anned -an(ar.& 2//1 +rom 0rimar. *o(r,e*

!onta,t leind3(nioned(4it5 6(e*tion& ,omment*& ,orre,tion*

!omm(ni,ated to t5e Ho(*e o+ Re0re*entatie*& #e,em)er %& 1791

[To t5e "0eaer o+ t5e Ho(*e o+ Re0re*entatie*]

T5e "e,retar. o+ t5e Trea*(r. in o)edien,e to t5e order o+ t5e

Ho(*e o+ Re0re*entatie*& o+ t5e 1%t5 da. o+ -an(ar. 179/& 5a*

a00lied 5i* attention& at a* earl. a 0eriod a* 5i* ot5er d(tie*

4o(ld 0ermit& to t5e *()e,t o+ Man(+a,t(re*: and 0arti,(larl. to

t5e mean* o+ 0romotin' *(,5 a* 4ill tend to render t5e United

"tate*& inde0endent on +orei'n nation*& +or militar. and ot5er

e**ential *(00lie* And 5e t5ere(0on re*0e,t+(ll. *()mit* t5e

+ollo4in' Re0ort

T5e ex0edien,. o+ en,o(ra'in' man(+a,t(re* in t5e United

"tate*& 45i,5 4a* not lon' *in,e deemed er. 6(e*tiona)le&

a00ear* at t5i* time to )e 0rett. 'enerall. admitted T5e

em)arra**ment*& 45i,5 5ae o)*tr(,ted t5e 0ro're** o+ o(r

external trade& {19;} 5ae led to *erio(* re+le,tion* on t5e

ne,e**it. o+ enlar'in' t5e *05ere o+ o(r dome*ti, ,ommer,e t5e

re*tri,tie re'(lation*& 45i,5 in +orei'n maret* a)ri'e t5e ent

o+ t5e in,rea*in' *(r0l(* o+ o(r A'ri,(lt(ral 0rod(,e& *ere to

)e'et an earne*t de*ire& t5at a more exten*ie demand +or t5at

*(r0l(* ma. )e ,reated at 5ome And t5e ,om0lete *(,,e**&

45i,5 5a* re4arded man(+a,t(rin' enter0ri*e& in *ome al(a)le

)ran,5e*& ,on*0irin' 4it5 t5e 0romi*in' *.m0tom*& 45i,5 attend

*ome le** mat(re e**a.*& in ot5er*& (*ti+. a 5o0e& t5at t5e

o)*ta,le* to t5e 'ro4t5 o+ t5i* *0e,ie* o+ ind(*tr. are le**

+ormida)le t5an t5e. 4ere (972) a00re5ended to )e: and t5at it i*

not di++i,(lt to +ind& in it* +(rt5er exten*ion: a +(ll

indemni+i,ation +or an. external di*adanta'e*& 45i,5 are or ma.

)e ex0erien,ed& a* 4ell a* an a,,e**ion o+ re*o(r,e*& +ao(ra)le

to national inde0enden,e and *a+et.

T5ere *till are& neert5ele**& re*0e,ta)le 0atron* o+ o0inion*&

(n+riendl. to t5e en,o(ra'ement o+ man(+a,t(re* T5e +ollo4in'

are& *()*tantiall.& t5e ar'(ment*& ). 45i,5 t5e*e o0inion* are

de+ended

*a. t5o*e 45o entertain t5em? A'ri,(lt(re

i* t5e mo*t )ene+i,ial and productive o)e,t o+ 5(man ind(*tr.

T5i* 0o*ition& 'enerall.& i+ not (nier*all. tr(e& a00lie* 4it5

0e,(liar em05a*i* to t5e United "tate*& on a,,o(nt o+ t5eir

immen*e tra,t* o+ +ertile territor.& (nin5a)ited and (nim0roedNot5in' ,an a++ord *o [279] adanta'eo(* an em0lo.ment +or

,a0ital and la)o(r& a* t5e ,oner*ion o+ t5i* exten*ie 4ilderne**

into ,(ltiated +arm* Not5in' e6(all. 4it5 t5i*& ,an ,ontri)(te to

t5e 0o0(lation& *tren't5 and real ri,5e* o+ t5e ,o(ntr.@

@To endeaor ). t5e extraordinar. 0atrona'e o+ oernment&

to a,,elerate t5e 'ro4t5 o+ man(+a,t(re*& i* in +a,t& to endeaor&

). +or,e and art& to tran*+er t5e nat(ral ,(rrent o+ ind(*tr.& +rom a

more& to a le** )ene+i,ial ,5annel B5ateer 5a* *(,5 a tenden,.

m(*t ne,e**aril. )e (n4i*e =ndeed it ,an 5ardl. eer )e 4i*e in a

'oernment& to attem0t to 'ie a dire,tion to t5e ind(*tr. o+ it*

,itiCen* T5i* (nder t5e 6(i,D*i'5ted '(idan,e o+ 0riate

intere*t& 4ill& i+ le+t to it*el+& in+alli)l. +ind it* o4n 4a. to t5e

mo*t 0ro+ita)le em0lo.ment: and it i* ). {19} *(,5

em0lo.ment& t5at t5e 0()li, 0ro*0erit. 4ill )e mo*t e++e,t(all.

0romoted To leae ind(*tr. to it*el+& t5ere+ore& i*& in almo*t

eer. ,a*e& t5e *o(nde*t a* 4ell a* t5e *im0le*t 0oli,.F

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*(00ort o+ t5e 0o*ition T5at it* real intere*t*& 0re,io(* and

im0ortant a* 4it5o(t t5e 5el0 o+ exa''eration& t5e. tr(l. are& 4ill

)e adan,ed& rat5er t5an in(red ). t5e d(e en,o(ra'ement o+

man(+a,t(re*& ma.& it i* )elieed& )e *ati*+a,toril. demon*trated

And it i* al*o )elieed t5at t5e ex0edien,. o+ *(,5

en,o(ra'ement in a 'eneral ie4 ma. )e *5e4n to )e

re,ommended ). t5e mo*t ,o'ent and 0er*(a*ie motie* o+

national 0oli,.

=t 5a* )een maintained& t5at A'ri,(lt(re i*& not onl.& t5e mo*t

0rod(,tie& )(t t5e onl. 0rod(,tie *0e,ie* o+ ind(*tr. T5e

realit. o+ t5i* *(''e*tion in eit5er a*0e,t& 5a*& 5o4eer& not )een

eri+ied ). an. a,,(rate detail o+ +a,t* and ,al,(lation*: and t5e

'eneral ar'(ment*& 45i,5 are add(,ed to 0roe it& are rat5er

*()til and 0aradoxi,al& t5an *olid or ,onin,in' {19}

T5o*e 45i,5 maintain it* ex,l(*ie 0rod(,tiene** are to t5i*

e++e,t (974)

Ia)o(r& )e*to4ed (0on t5e ,(ltiation o+ land 0rod(,e*

eno('5& [281] not onl. to re0la,e all t5e ne,e**ar. ex0en,e*

in,(rred in t5e )(*ine**& and to maintain t5e 0er*on* 45o are

em0lo.ed in it& )(t to a++ord to'et5er 4it5 t5e ordinary profit on

t5e *to, or ,a0ital o+ t5e armer& a nett *(r0l(*& or rent +or t5e

landlord or 0ro0rietor o+ t5e *oil $(t t5e la)or o+ Arti+i,er* doe*

not5in' more& t5an re0la,e t5e "to, 45i,5 em0lo.* t5em >or

45i,5 +(rni*5e* material* tool* and 4a'e*? and .ield t5eordinary profit (0on t5at "to, =t .ield* not5in' e6(ialent to

t5e rent o+ land Neit5er doe* it add an. t5in' to t5e totalvalue

o+ t5e whole annual produce o+ t5e land and la)o(r o+ t5e

,o(ntr. T5e additional al(e 'ien to t5o*e 0art* o+ t5e 0rod(,e

o+ land& 45i,5 are 4ro('5t into man(+a,t(re*& i* ,o(nterD

)alan,ed ). t5e al(e o+ t5o*e ot5er 0art* o+ t5at 0rod(,e& 45i,5

are ,on*(med ). t5e man(+a,t(rer* =t ,an t5ere+ore onl. )e ).

*ain'& orparsimonynot ). t5e 0o*itieproductiveness o+ t5eir

la)o(r& t5at t5e ,la**e* o+ Arti+i,er* ,an in an. de'ree a('ment

t5e reen(e o+ t5e "o,iet.

To t5i* it 5a* )een an*4ered DD

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,om0lexion !ir,(m*tan,e* *o a'(e and 'eneral& a* 4ell a* *o

a)*tra,t& ,an a++ord little in*tr(,tion in a matter o+ t5i* ind

Anot5er& and t5at 45i,5 *eem* to )e t5e 0rin,i0al ar'(ment

o++ered +or t5e *(0erior 0rod(,tiene** o+ A'ri,(lt(ral la)o(r&

t(rn* (0on t5e alle'ation& t5at la)o(r em0lo.ed in man(+a,t(re*

.ield* not5in' e6(ialent to t5e rent o+ land: or to t5at nett

*(r0l(*& a* it i* ,alled& 45i,5 a,,r(e* to t5e 0ro0rietor o+ t5e *oil

$(t t5i* di*tin,tion& im0ortant a* it 5a* )een deemed& a00ear*

rat5er verbalt5ansubstantial.

=t i* ea*il. di*,erni)le& t5at 45at in t5e +ir*t in*tan,e i* diided

into t4o 0art* (nder t5e denomination* o+ t5e ordinary profit o+

t5e "to, o+ t5e +armer and rent to t5e landlord& i* in t5e *e,ond

in*tan,e (nited (nder t5e 'eneral a00ellation o+ t5e ordinary

profit on t5e "to, o+ t5e Undertaer: and t5at t5i* +ormal or

er)al di*tri)(tion ,on*tit(te* t5e 45ole di++eren,e in t5e t4o

,a*e* =t *eem* to 5ae )een oerlooed& t5at t5e land i* it*el+ a

"to, or ,a0ital& adan,ed or lent ). it* o4ner to t5e o,,(0ier or

tenant& and t5at t5e rent 5e re,eie* i* onl. t5e ordinar. 0ro+it o+

a ,ertain "to, in land& not mana'ed ). t5e 0ro0rietor 5im*el+&

)(t ). anot5er to 45om 5e lend* or let* it& and 45o on 5i* 0art

adan,e* a *e,ond ,a0ital to *to, J im0roe t5e land& (0on

45i,5 5e al*o re,eie* t5e (*(al 0ro+it T5e rent o+ t5e landlord

and t5e 0ro+it o+ t5e +armer are t5ere+ore not5in' more t5an t5e

ordinary profits of two ,a0ital* )elon'in' to two di++erent0er*on*& and (nited in t5e ,(ltiation o+ a +arm A* in t5e ot5er

,a*e& t5e *(r0l(* 45i,5 ari*e* (0on an. man(+a,tor.& a+ter

re0la,in' t5e ex0en,e* o+ ,arr.in' it on& an*4er* to t5e ordinar.

0ro+it* o+ one or more,a0ital* en'a'ed in t5e 0ro*e,(tion o+ *(,5

man(+a,tor. =t i* *aid one [28] or more ,a0ital*: )e,a(*e in

+a,t& t5e *ame t5in' 45i,5 i* ,ontem0lated& in t5e ,a*e o+ t5e

+arm& *ometime* 5a00en* in t5at o+ a man(+a,tor. T5ere i* one&

45o +(rni*5e* a 0art o+ t5e ,a0ital& or lend* a 0art o+ t5e mone.&

). 45i,5 it i* ,arried on& and anot5er& 45o ,arrie* {2//} it on

4it5 t5e addition o+ 5i* o4n ,a0ital O(t o+ t5e *(r0l(*& 45i,5

remain*& a+ter de+ra.in' ex0en,e*& an intere*t i* 0aid to t5e

mone. lender +or t5e 0ortion o+ t5e ,a0ital +(rni*5ed ). 5im&

45i,5 exa,tl. a'ree* 4it5 t5e rent 0aid to t5e landlord: and t5e

re*id(e o+ t5at *(r0l(* ,on*tit(te* t5e 0ro+it o+ t5e (ndertaer or

man(+a,t(rer& and a'ree* 4it5 45at i* denominated t5e ordinar.

0ro+it* on t5e "to, o+ t5e +armer $ot5 to'et5er mae t5e

ordinar. 0ro+it* o+ t4o ,a0ital* [em0lo.ed in a man(+a,tor.: a* in

t5e ot5er ,a*e t5e rent o+ t5e landlord and t5e reen(e o+ t5e

+armer ,om0o*e t5e ordinar. 0ro+it* o+ t4o !a0ital*] em0lo.ed in

t5e ,(ltiation o+ a +arm

T5e rent t5ere+ore a,,r(in' to t5e 0ro0rietor o+ t5e land& +ar

+rom )ein' a ,riterion o+ exclusive 0rod(,tiene**& a* 5a* )een

ar'(ed& i* no ,riterion een o+ *(0erior (977)0rod(,tiene** T5e

6(e*tion m(*t *till )e& 45et5er t5e *(r0l(*& a+ter de+ra.in'

ex0en,e*& o+ a given capital, em0lo.ed in t5e purchase and

improvement o+ a 0ie,e o+ land& i* 'reater or le**& t5an t5at o+ a

lie ,a0ital em0lo.ed in t5e 0ro*e,(tion o+ a man(+a,tor. or

45et5er t5e whole value produced +rom a given capital and a

given uantity of labour, em0lo.ed in one 4a.& )e 'reater or le**&t5an t5e whole value produced +rom an eual capital and an

eual uantity of labour em0lo.ed in t5e ot5er 4a. or rat5er&

0er5a0* 45et5er t5e )(*ine** o+ A'ri,(lt(re or t5at o+

Man(+a,t(re* 4ill .ield t5e 'reate*t 0rod(,t& a,,ordin' to a

compound ratio o+ t5e 6(antit. o+ t5e !a0ital and t5e 6(antit. o+

la)o(r& 45i,5 are em0lo.ed in t5e one or in t5e ot5er

T5e *ol(tion o+ eit5er o+ t5e*e 6(e*tion* i* not ea*.: it

inole* n(mero(* and ,om0li,ated detail*& de0endin' on an

a,,(rate no4led'e o+ t5e o)e,t* to )e ,om0ared =t i* not

no4n t5at t5e ,om0ari*on 5a* eer .et )een made (0on

*(++i,ient data 0ro0erl. a*,ertained and anali*ed To )e a)le to

mae it on t5e 0re*ent o,,a*ion 4it5 *ati*+a,tor. 0re,i*ion 4o(ld

demand more 0reio(* en6(ir. and ine*ti'ation& t5an t5ere 5a*

)een 5it5erto eit5er lei*(re or o00ort(nit. to a,,om0li*5

"ome e**a.* 5o4eer 5ae )een made to4ard* a,6(irin' t5e

re6(i*ite in+ormation: 45i,5 5ae rat5er *ered to t5ro4 do()t

(0on& t5an to ,on+irm t5e H.0ot5e*i*& (nder examination $(t

{2/1} it o('5t to )e a,no4led'ed& t5at t5e. 5ae )een too little

dier*i+ied& and are too im0er+e,t& to a(t5ori*e a de+initie

,on,l(*ion eit5er 4a.: leadin' rat5er to 0ro)a)le ,one,t(re t5an

to ,ertain ded(,tion T5e. render it 0ro)a)le& t5at t5ere are

ario(* )ran,5e* o+ man(+a,t(re*& in 45i,5 [28%] a 'ien

!a0ital 4ill .ield a 'reater total 0rod(,t& and a ,on*idera)l.

'reater nett 0rod(,t& t5an an e6(al ,a0ital ine*ted in t5e

0(r,5a*e and im0roement o+ land*: and t5at t5ere are al*osome

)ran,5e*& in 45i,5 )ot5 t5e gross and t5e nett 0rod(,e 4ill

ex,eed t5at o+ A'ri,(lt(ral ind(*tr.: a,,ordin' to a ,om0o(nd

ratio o+ ,a0ital and la)o(r $(t it i* on t5i* la*t 0oint& t5at t5ere

a00ear* to )e t5e 'reate*t room +or do()t =t i* +ar le** di++i,(lt to

in+er 'enerall.& t5at t5e nett produce o+ !a0ital en'a'ed in

man(+a,t(rin' enter0ri*e* i* 'reater t5an t5at o+ !a0ital en'a'ed

in A'ri,(lt(re

=n *tatin' t5e*e re*(lt*& t5e 0(r,5a*e and im0roement o+

land*& (nder 0reio(* ,(ltiation are alone ,ontem0lated T5e

,om0ari*on i* more in +ao(r o+ A'ri,(lt(re& 45en it i* made4it5 re+eren,e to t5e *ettlement o+ ne4 and 4a*te land*: )(t an

ar'(ment dra4n +rom *o tem0orar. a ,ir,(m*tan,e ,o(ld 5ae no

4ei'5t in determinin' t5e 'eneral 6(e*tion ,on,ernin' t5e

0ermanent relatie 0rod(,tiene** o+ t5e t4o *0e,ie* o+ ind(*tr.

Ho4 +ar it o('5t to in+l(en,e t5e 0oli,. o+ t5e United "tate*& on

t5e *,ore o+ 0arti,(lar *it(ation& 4ill )e aderted to in anot5er

0la,e

T5e +ore'oin' *(''e*tion* are not designed to inculcate an

opinion that manufacturing industry is more productive than

that of !griculture. T5e. are intended rat5er to *5e4 t5at t5e

reer*e o+ t5i* 0ro0o*ition i* not a*,ertained: t5at t5e 'eneral

ar'(ment* 45i,5 are )ro('5t to e*ta)li*5 it are not *ati*+a,tor.:

and ,on*e6(entl. t5at a *(00o*ition o+ t5e *(0erior

0rod(,tiene** o+ Tilla'e o('5t to )e no o)*ta,le to li*tenin' to

an. *()*tantial ind(,ement* to t5e en,o(ra'ement o+

man(+a,t(re*& 45i,5 ma. )e ot5er4i*e 0er,eied to exi*t&

t5ro('5 an a00re5en*ion& t5at t5e. ma. 5ae a tenden,. to diert

la)o(r +rom a more to a le** 0ro+ita)le em0lo.ment

=t i* extremel. 0ro)a)le& t5at on a +(ll and a,,(rate

deello0ment o+ t5e matter& on t5e 'ro(nd o+ +a,t and ,al,(lation&

it 4o(ld )e di*,oered t5at t5ere i* no material di++eren,e

)et4een t5e a''re'ate 0rod(,tiene** o+ t5e one& and (978) o+

t5e ot5er ind o+ ind(*tr.: and t5at t5e 0ro0riet. o+ t5e

en,o(ra'ement*& 45i,5 ma. in an. ,a*e )e 0ro0o*ed to )e 'ien

to eit5er o('5t to )e determined (0on ,on*ideration* irrelatie to

an. ,om0ari*on o+ t5at nat(re

== $(t 4it5o(t ,ontendin' +or t5e *(0erior 0rod(,tiene**

o+ Man(+a,t(rin' =nd(*tr.& it ma. ,ond(,e to a )etter (d'mento+ t5e 0oli,.& 45i,5 o('5t to )e 0(r*(ed re*0e,tin' it*

en,o(ra'ement& {2/2} to ,ontem0late t5e *()e,t& (nder *ome

additional a*0e,t*& tendin' not onl. to ,on+irm t5e idea& t5at t5i*

ind o+ ind(*tr. 5a* )een im0ro0erl. re0re*ented a* (n0rod(,tie

in it*el+: )(t [to] ein,e in addition t5at t5e e*ta)li*5ment and

di++(*ion o+ man(+a,t(re* 5ae t5e e++e,t o+ renderin' t5e total

ma** o+ (*e+(l and 0rod(,tie la)or in a ,omm(nit.& [28]

greater than it would otherwise be. =n 0ro*e,(tin' t5i*

di*,(**ion& it ma. )e ne,e**ar. )rie+l. to re*(me and reie4

*ome o+ t5e to0i,*& 45i,5 5ae )een alread. to(,5ed

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To a++irm& t5at t5e la)o(r o+ t5e Man(+a,t(rer i* (n0rod(,tie&

)e,a(*e 5e ,on*(me* a* m(,5 o+ t5e 0rod(,e o+ land& a* 5e add*

al(e to t5e ra4 material* 45i,5 5e man(+a,t(re*& i* not )etter

+o(nded& t5an it 4o(ld )e to a++irm& t5at t5e la)o(r o+ t5e +armer&

45i,5 +(rni*5e* material* to t5e man(+a,t(rer& i* (n0rod(,tie&

)ecause he consumes an eual value of manufactured articles.

Ea,5 +(rni*5e* a ,ertain 0ortion o+ t5e 0rod(,e o+ 5i* la)or to t5e

ot5er& and ea,5 de*tro.* a ,orre*0ondent 0ortion o+ t5e 0rod(,e

o+ t5e la)o(r o+ t5e ot5er =n t5e mean time& t5e maintenan,e o+

t4o !itiCen*& in*tead o+ one& i* 'oin' on: t5e "tate 5a* t4o

mem)er* in*tead o+ one: and t5e. to'et5er ,on*(me t4i,e t5e

al(e o+ 45at i* 0rod(,ed +rom t5e land

=+ in*tead o+ a +armer and arti+i,er& t5ere 4ere a +armer onl.&

5e 4o(ld )e (nder t5e ne,e**it. o+ deotin' a 0art o+ 5i* la)o(r

to t5e +a)ri,ation o+ ,loat5in' and ot5er arti,le*& 45i,5 5e 4o(ld

0ro,(re o+ t5e arti+i,er& in t5e ,a*e o+ t5ere )ein' *(,5 a 0er*on:

and o+ ,o(r*e 5e 4o(ld )e a)le to deote le** la)or to t5e

,(ltiation o+ 5i* +arm: and 4o(ld dra4 +rom it a 0ro0ortiona)l.

le** 0rod(,t T5e 45ole 6(antit. o+ 0rod(,tion& in t5i* *tate o+

t5in'*& in 0roi*ion*& ra4 material* and man(+a,t(re*& 4o(ld

,ertainl. not ex,eed in al(e t5e amo(nt o+ 45at 4o(ld )e

0rod(,ed in 0roi*ion* and ra4 material* onl.& i+ t5ere 4ere an

arti+i,er a* 4ell a* a +armer

A'ain DD i+ t5ere 4ere )ot5 an arti+i,er and a +armer& t5e latter4o(ld )e le+t at li)ert. to 0(r*(e ex,l(*iel. t5e ,(ltiation o+ 5i*

+arm A 'reater 6(antit. o+ 0roi*ion* and ra4 material* 4o(ld o+

,o(r*e )e 0rod(,ed DD e6(al at lea*t DD a* 5a* )een alread.

o)*ered& to t5e 45ole amo(nt o+ t5e 0roi*ion*& ra4 material*

{2/;} and man(+a,t(re*& 45i,5 4o(ld exi*t on a ,ontrar.

*(00o*ition T5e arti+i,er& at t5e *ame time 4o(ld )e 'oin' on in

t5e 0rod(,tion o+ man(+a,t(red ,ommoditie*: to an amo(nt

*(++i,ient not onl. to re0a. t5e +armer& in t5o*e ,ommoditie*& +or

t5e 0roi*ion* and material* 45i,5 4ere 0ro,(red +rom 5im& )(t

to +(rni*5 t5e Arti+i,er 5im*el+ 4it5 a *(00l. o+ *imilar

,ommoditie* +or 5i* o4n (*e T5(* t5en& t5ere 4o(ld )e t4o

6(antitie* or al(e* in exi*ten,e& in*tead o+ one: and t5e reen(e

and ,on*(m0tion (979) 4o(ld )e do()le in one ,a*e& 45at it

4o(ld )e in t5e ot5er =+ in 0la,e o+ )ot5 t5e*e *(00o*ition*& t5ere 4ere *(00o*ed to

)e t4o +armer*& and no arti+i,er& ea,5 o+ 45om a00lied a 0art o+

5i* la)o(r to t5e ,(lt(re o+ land& and anot5er 0art to t5e

+a)ri,ation o+ Man(+a,t(re* DD in t5i* ,a*e& t5e 0ortion o+ t5e

la)o(r o+ )ot5 )e*to4ed (0on land 4o(ld 0rod(,e t5e *ame

6(antit. o+ 0roi*ion* [287] and ra4 material* onl.& a* 4o(ld

)e 0rod(,ed ). t5e intire *(m o+ t5e la)o(r o+ one a00lied in t5e

*ame manner& and t5e 0ortion o+ t5e la)o(r o+ )ot5 )e*to4ed

(0on man(+a,t(re*& 4o(ld 0rod(,e t5e *ame 6(antit. o+

man(+a,t(re* onl.& a* 4o(ld )e 0rod(,ed ). t5e intire *(m o+ t5e

la)o(r o+ one a00lied in t5e *ame manner Hen,e t5e 0rod(,e o+

t5e la)o(r o+ t5e t4o +armer* 4o(ld not )e 'reater t5an t5e

0rod(,e o+ t5e la)o(r o+ t5e +armer and arti+i,er: and 5en,e& it

re*(lt*& t5at t5e la)o(r o+ t5e arti+i,er i* a* 0o**itiel. 0rod(,tie

a* t5at o+ t5e +armer& and& a* 0o*itiel.& a('ment* t5e reen(e o+t5e "o,iet.

T5e la)o(r o+ t5e Arti+i,er re0la,e* to t5e +armer t5at 0ortion

o+ 5i* la)o(r& 4it5 45i,5 5e 0roide* t5e material* o+ ex,5an'e

4it5 t5e Arti+i,er& and 45i,5 5e 4o(ld ot5er4i*e 5ae )een

,om0elled to a00l. to man(+a,t(re* and 45ile t5e Arti+i,er t5(*

ena)le* t5e +armer to enlar'e 5i* *to, o+ A'ri,(lt(ral ind(*tr.& a

0ortion o+ 45i,5 5e 0(r,5a*e* +or 5i* o4n (*e& he also supplies

himself with the manufactured articles of which he stands in

need. He doe* *till more DD $e*ide* t5i* e6(ialent 45i,5 5e

'ie* +or t5e 0ortion o+ A'ri,(lt(ral la)o(r ,on*(med ). 5im&

and t5i* *(00l. o+ man(+a,t(red ,ommoditie* +or 5i* o4n

,on*(m0tion DD 5e +(rni*5e* *till a *(r0l(*& 45i,5 ,om0en*ate*

+or t5e (*e o+ t5e !a0ital adan,ed eit5er ). 5im*el+ or *ome

ot5er 0er*on& +or ,arr.in' on t5e )(*ine** T5i* i* t5e ordinar.

0ro+it o+ t5e {2/} *to, em0lo.ed in t5e man(+a,tor.& and i*& in

eer. *en*e& a* e++e,tie an addition to t5e in,ome o+ t5e "o,iet.&

a* t5e rent o+ land

T5e 0rod(,e o+ t5e la)o(r o+ t5e Arti+i,er ,on*e6(entl.& ma.

)e re'arded a* ,om0o*ed o+ t5ree 0art*: one ). 45i,5 t5e

0roi*ion* +or 5i* *()*i*ten,e and t5e material* +or 5i* 4or are

0(r,5a*ed o+ t5e +armer& one ). 45i,5 5e *(00lie* 5im*el+ 4it5

man(+a,t(red ne,e**arie*& and a t5ird 45i,5 ,on*tit(te* t5e 0ro+it

on t5e "to, em0lo.ed T5e t4o la*t 0ortion* *eem to 5ae )een

oerlooed in t5e *.*tem& 45i,5 re0re*ent* man(+a,t(rin'

ind(*tr. a* )arren and (n0rod(,tie

=n t5e ,o(r*e o+ t5e 0re,edin' ill(*tration*& t5e 0rod(,t* o+

e6(al 6(antitie* o+ t5e la)o(r o+ t5e +armer and arti+i,er 5ae

)een treated a* i+ e6(al to ea,5 ot5er $(t t5i* i* not to )e

(nder*tood a* intendin' to a**ert an. *(,5 0re,i*e e6(alit. =t i*

merel. a manner o+ ex0re**ion ado0ted +or t5e *ae o+ *im0li,it.

and 0er*0i,(it. B5et5er t5e al(e o+ t5e 0rod(,e o+ t5e la)o(r

o+ t5e +armer )e *ome45at more or le**& t5an t5at o+ t5e arti+i,er&

i* not material to t5e main *,o0e o+ t5e ar'(ment& 45i,5 5it5erto

5a* onl. aimed at *5e4in'& t5at t5e one& a* 4ell a* t5e ot5er&

o,,a*ion* a 0o**itie a('mentation o+ t5e total 0rod(,e andreen(e o+ t5e "o,iet.

[288]{2/} (980) =t i* no4 0ro0er to 0ro,eed a *te0 +(rt5er&

and to en(merate t5e 0rin,i0al ,ir,(m*tan,e*& +rom 45i,5 it ma.

)e in+erred DD T5at man(+a,t(rin' e*ta)li*5ment* not onl.

o,,a*ion a 0o**itie a('mentation o+ t5e Prod(,e and Reen(e o+

t5e "o,iet.& )(t t5at t5e. ,ontri)(te e**entiall. to renderin' t5em

'reater t5an t5e. ,o(ld 0o**i)l. )e& 4it5o(t *(,5 e*ta)li*5ment*

T5e*e ,ir,(m*tan,e* are DD

1 T5e dii*ion o+ Ia)o(r

2 An exten*ion o+ t5e (*e o+ Ma,5iner.

; Additional em0lo.ment to ,la**e* o+ t5e ,omm(nit. not

ordinaril. en'a'ed in t5e )(*ine**

T5e 0romotin' o+ emi'ration +rom +orei'n !o(ntrie* % T5e +(rni*5in' 'reater *,o0e +or t5e dier*it. o+ talent* and

di*0o*ition* 45i,5 di*,riminate men +rom ea,5 ot5er

T5e a++ordin' a more am0le and ario(* +ield +or enter0ri*e

{2/%}

7 T5e ,reatin' in *ome in*tan,e* a ne4& and *e,(rin' in all& a

more ,ertain and *tead. demand +or t5e *(r0l(* 0rod(,e o+ t5e

*oil

Ea,5 o+ t5e*e ,ir,(m*tan,e* 5a* a ,on*idera)le in+l(en,e

(0on t5e total ma** o+ ind(*trio(* e++ort in a ,omm(nit.

To'et5er& t5e. add to it a de'ree o+ ener'. and e++e,t& 45i,5 are

not ea*il. ,on,eied "ome ,omment* (0on ea,5 o+ t5em& in t5e

order in 45i,5 t5e. 5ae )een *tated& ma. *ere to ex0lain t5eir

im0ortan,e

". !s to the #ivision of $abour. =t 5a* (*tl. )een o)*ered& t5at t5ere i* *,ar,el. an. t5in' o+

'reater moment in t5e e,onom. o+ a nation& t5an t5e 0ro0er

dii*ion o+ la)o(r T5e *e0aration o+ o,,(0ation* ,a(*e* ea,5 to

)e ,arried to a m(,5 'reater 0er+e,tion& t5an it ,o(ld 0o**i)le

a,6(ire& i+ t5e. 4ere )lended T5i* ari*e* 0rin,i0all. +rom t5ree

,ir,(m*tan,e*

l*t DD T5e 'reater *ill and dexterit. nat(rall. re*(ltin' +rom a

,on*tant and (ndiided a00li,ation to a *in'le o)e,t =t i*

eident& t5at t5e*e 0ro0ertie* m(*t in,rea*e& in 0ro0ortion to t5e

*e0aration and *im0li+i,ation o+ o)e,t* and t5e *teadine** o+ t5e

attention deoted to ea,5: and m(*t )e le**& in 0ro0ortion to t5e

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5/22

,om0li,ation o+ o)e,t*& and t5e n(m)er amon' 45i,5 t5e

attention i* di*tra,ted

2nd T5e e,onom. o+ time DD ). aoidin' t5e lo** o+ it&

in,ident to a +re6(ent tran*ition +rom one o0eration to anot5er o+

a di++erent nat(re T5i* de0end* on ario(* ,ir,(m*tan,e* DD t5e

tran*ition it*el+ DD t5e orderl. di*0o*ition o+ t5e im0liment*&

ma,5ine* and material* em0lo.ed in t5e o0eration to )e

relin6(i*5ed DD t5e 0re0arator. *te0* to t5e ,ommen,ement o+ a

ne4 one DD t5e interr(0tion o+ t5e im0(l*e& 45i,5 t5e mind o+ t5e

4orman a,6(ire*& +rom )ein' en'a'ed in a 0arti,(lar o0eration

DD t5e di*tra,tion* 5e*itation* and rel(,tan,e*& [289] 45i,5

attend t5e 0a**a'e +rom one ind o+ )(*ine** to anot5er

;rd An exten*ion o+ t5e (*e o+ Ma,5iner. A man o,,(0ied

on a *in'le o)e,t 4ill 5ae it more in 5i* 0o4er& and 4ill )e

more nat(rall. led to exert 5i* ima'ination in dei*in' met5od*

{2/}to +a,ilitate and a)ri'e la)o(r& t5an i+ 5e 4ere 0er0lexed ).

a ariet. o+ inde0endent and di**imilar o0eraD (981) tion*

$e*ide* t5i*& t5e +a)ri,ation o+ Ma,5ine*& in n(mero(* in*tan,e*&

)e,omin' it*el+ a di*tin,t trade& t5e Arti*t 45o +ollo4* it& 5a* all

t5e adanta'e* 45i,5 5ae )een en(merated& +or im0roement in

5i* 0arti,(lar art: and in )ot5 4a.* t5e inention and a00li,ation

o+ ma,5iner. are extended

And +rom t5e*e ,a(*e* (nited& t5e mere *e0aration o+ t5e

o,,(0ation o+ t5e ,(ltiator& +rom t5at o+ t5e Arti+i,er& 5a* t5ee++e,t o+ a('mentin' t5e productive powers o+ la)o(r& and 4it5

t5em& t5e total ma** o+ t5e 0rod(,e or reen(e o+ a !o(ntr. =n

t5i* *in'le ie4 o+ t5e *()e,t& t5ere+ore& t5e (tilit. o+ Arti+i,er*

or Man(+a,t(rer*& to4ard* 0romotin' an in,rea*e o+ 0rod(,tie

ind(*tr.& i* a00arent

%. !s to an extension of the use of &achinery a point which

though partly anticipated reuires to be placed in one or two

additional lights.

T5e em0lo.ment o+ Ma,5iner. +orm* an item o+ 'reat

im0ortan,e in t5e 'eneral ma** o+ national ind(*tr. KTi* an

arti+i,ial +or,e )ro('5t in aid o+ t5e nat(ral +or,e o+ man: and& to

all t5e 0(r0o*e* o+ la)o(r& i* an in,rea*e o+ 5and*: an a,,e**ion

o+ *tren't5& unencumberedtoo by the expence of maintaining thelaborer. Ma. it not t5ere+ore )e +airl. in+erred& t5at t5o*e

o,,(0ation*& 45i,5 'ie 'reate*t *,o0e to t5e (*e o+ t5i*

a(xiliar.& ,ontri)(te mo*t to t5e 'eneral "to, o+ ind(*trio(*

e++ort& and& in ,on*e6(en,e& to t5e 'eneral 0rod(,t o+ ind(*tr.L

=t *5all )e taen +or 'ranted& and t5e tr(t5 o+ t5e 0o*ition

re+erred to o)*eration& t5at man(+a,t(rin' 0(r*(it* are

*(*,e0ti)le in a 'reater de'ree o+ t5e a00li,ation o+ ma,5iner.&

t5an t5o*e o+ A'ri,(lt(re =+ *o all t5e di++eren,e i* lo*t to a

,omm(nit.& 45i,5& in*tead o+ man(+a,t(rin' +or it*el+& 0ro,(re*

t5e +a)ri,* re6(i*ite to it* *(00l. +rom ot5er !o(ntrie* T5e

*()*tit(tion o+ +orei'n +or dome*ti, man(+a,t(re* i* a tran*+er to

+orei'n nation* o+ t5e adanta'e* a,,r(in' +rom t5e em0lo.ment

o+ Ma,5iner.& in t5e mode* in 45i,5 it i* ,a0a)le o+ )ein'

em0lo.ed& 4it5 mo*t (tilit. and to t5e 'reate*t extent {2/7}

T5e !otton Mill inented in En'land& 4it5in t5e la*t t4ent..ear*& i* a *i'nal ill(*tration o+ t5e 'eneral 0ro0o*ition& 45i,5 5a*

)een (*t adan,ed =n ,on*e6(en,e o+ it& all t5e di++erent

0ro,e**e* +or *0inin' !otton are 0er+ormed ). mean* o+

Ma,5ine*& 45i,5 are [29/] (t in motion ). 4ater& and attended

,5ie+l. ). 4omen and !5ildren: [and ). a *maller] n(m)er o+

[0er*on*& in t5e 45ole& t5an are] re6(i*ite in t5e ordinar. mode o+

*0innin' And it i* an adanta'e o+ 'reat moment t5at t5e

o0eration* o+ t5i* mill ,ontin(e 4it5 ,onenien,e& d(rin' t5e

ni'5t& a* 4ell a* t5ro('5 t5e da. T5e 0rodi'io(* a++e,t o+ *(,5 a

Ma,5ine i* ea*il. ,on,eied To t5i* inention i* to )e attri)(ted

e**entiall. t5e immen*e 0ro're**& 45i,5 5a* )een *o *(ddenl.

made in reat $ritain in t5e ario(* +a)ri,* o+ !otton

'. !s to the additional employment of classes of the

community, not ordinarily engaged in the particular business.

T5i* i* not amon' t5e lea*t al(a)le o+ t5e mean*& ). 45i,5

man(+a,t(rin' in*tit(tion* ,onD (982) tri)(te to a('ment t5e

'eneral *to, o+ ind(*tr. and 0rod(,tion =n 0la,e* 45ere t5o*e

in*tit(tion* 0reail& )e*ide* t5e 0er*on* re'(larl. en'a'ed in

t5em& t5e. a++ord o,,a*ional and extra em0lo.ment to ind(*trio(*

indiid(al* and +amilie*& 45o are 4illin' to deote t5e lei*(re

re*(ltin' +rom t5e intermi**ion* o+ t5eir ordinar. 0(r*(it* to

,ollateral la)o(r*& a* a re*o(r,e o+ m(lti0l.in' t5eir a,6(i*ition*

or [t5eir] eno.ment* T5e 5(*)andman 5im*el+ ex0erien,e* a

ne4 *o(r,e o+ 0ro+it and *(00ort +rom t5e en,rea*ed ind(*tr. o+

5i* 4i+e and da('5ter*: inited and *tim(lated ). t5e demand* o+

t5e nei'5)orin' man(+a,torie*

$e*ide* t5i* adanta'e o+ o,,a*ional em0lo.ment to ,la**e*

5ain' di++erent o,,(0ation*& t5ere i* anot5er o+ a nat(re allied to

it [and] o+ a *imilar tenden,. T5i* i* DD t5e em0lo.ment o+

0er*on* 45o 4o(ld ot5er4i*e )e idle >and in man. ,a*e* a

)(rt5en on t5e ,omm(nit.?& eit5er +rom t5e ).a** o+ tem0er&

5a)it& in+irmit. o+ )od.& or *ome ot5er ,a(*e& indi*0o*in'& or

di*6(ali+.in' t5em +or t5e toil* o+ t5e !o(ntr. =t i* 4ort5. o+0arti,(lar remar& t5at& in 'eneral& 4omen and !5ildren are

rendered more {2/8} (*e+(l and t5e latter more earl. (*e+(l ).

man(+a,t(rin' e*ta)li*5ment*& t5an t5e. 4o(ld ot5er4i*e )e O+

t5e n(m)er o+ 0er*on* em0lo.ed in t5e !otton Man(+a,torie* o+

reat $ritain& it i* ,om0(ted t5at 7 nearl. are 4omen and

,5ildren: o+ 45om t5e 'reate*t 0ro0ortion are ,5ildren and man.

o+ t5em o+ a er. tender a'e

And t5(* it a00ear* to )e one o+ t5e attri)(te* o+

man(+a,t(re*& and one o+ no *mall ,on*e6(en,e& to 'ie o,,a*ion

to t5e exertion o+ a 'reater 6(antit. o+ =nd(*tr.& een ). t5e same

number o+ 0er*on*& 45ere t5e. 5a00en to 0reail& t5an 4o(ld

exi*t& i+ t5ere 4ere no *(,5 e*ta)li*5ment*

(. !s to the promoting of emigration from foreign )ountries. Men rel(,tantl. 6(it one ,o(r*e o+ o,,(0ation and lieli5ood

+or anot5er& (nle** inited to it ). er. a00arent and 0roximate

adanta'e* Man.& 45o 4o(ld 'o +rom one ,o(ntr. to anot5er& i+

t5e. 5ad [291] a 0ro*0e,t o+ ,ontin(in' 4it5 more )ene+it t5e

,allin'*& to 45i,5 t5e. 5ae )een ed(,ated& 4ill o+ten not )e

tem0ted to ,5an'e t5eir *it(ation& ). t5e 5o0e o+ doin' )etter& in

*ome ot5er 4a. Man(+a,t(rer*& 45o li*tenin' to t5e 0o4er+(l

initation* o+ a )etter 0ri,e +or t5eir +a)ri,*& or t5eir la)o(r& o+

'reater ,5ea0ne** o+ 0roi*ion* and ra4 material*& o+ an

exem0tion +rom t5e ,5ie+ 0art o+ t5e taxe* )(rt5en* and re*traint*&

45i,5 t5e. end(re in t5e old 4orld& o+ 'reater 0er*onal

inde0enden,e and ,on*e6(en,e& (nder t5e o0eration o+ a more

e6(al 'oernment& and o+ 45at i* +ar more 0re,io(* t5an mere

reli'io(* toleration DD a 0er+e,t e6(alit. o+ reli'io(* 0riile'e*:

4o(ld 0ro)a)l. +lo, +rom E(ro0e to t5e United "tate* to 0(r*(et5eir o4n trade* or 0ro+e**ion*& i+ t5e. 4ere on,e made *en*i)le

o+ t5e adanta'e* t5e. 4o(ld eno.& and 4ere in*0ired 4it5 an

a**(ran,e o+ en,o(ra'ement and em0lo.ment& 4ill& 4it5

di++i,(lt.& )e ind(,ed to tran*0lant t5em*ele*& 4it5 a ie4 to

)e,omin' !(ltiator* o+ Iand

=+ it )e tr(e t5en& t5at it i* t5e intere*t o+ t5e United "tate* to

o0en eer. 0o**i)le aen(e to (983) emi'ration +rom a)road& it

a++ord* a 4ei'5t. ar'(ment +or t5e en,o(ra'ement o+

man(+a,t(re*: {2/9} 45i,5 +or t5e rea*on* (*t a**i'ned& 4ill

5ae t5e *tron'e*t tenden,. to m(lti0l. t5e ind(,ement* to it

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Here i* 0er,eied an im0ortant re*o(r,e& not onl. +or

extendin' t5e 0o0(lation& and 4it5 it t5e (*e+(l and 0rod(,tie

la)o(r o+ t5e ,o(ntr.& )(t lie4i*e +or t5e 0ro*e,(tion o+

man(+a,t(re*& 4it5o(t ded(,tin' +rom t5e n(m)er o+ 5and*&

45i,5 mi'5t ot5er4i*e )e dra4n to tilla'e: and een +or t5e

indemni+i,ation o+ A'ri,(lt(re +or *(,5 a* mi'5t 5a00en to )e

dierted +rom it Man.& 45om Man(+a,t(rin' ie4* 4o(ld

ind(,e to emi'rate& 4o(ld a+ter4ard* .ield to t5e tem0tation*&

45i,5 t5e 0arti,(lar *it(ation o+ t5i* !o(ntr. 5old* o(t to

A'ri,(lt(ral 0(r*(it* And 45ile A'ri,(lt(re 4o(ld in ot5er

re*0e,t* derie man. *i'nal and (nmin'led adanta'e*& +rom t5e

'ro4t5 o+ man(+a,t(re*& it i* a 0ro)lem 45et5er it 4o(ld 'ain or

lo*e& a* to t5e arti,le o+ t5e n(m)er o+ 0er*on* em0lo.ed in

,arr.in' it on

*. !s to the furnishing greater scope for the diversity of talents

and dispositions, which discriminate men from each other.

T5i* i* a m(,5 more 0o4er+(l mean o+ a('mentin' t5e +(nd o+

national =nd(*tr. t5an ma. at +ir*t *i'5t a00ear =t i* a (*t

o)*eration& t5at mind* o+ t5e *tron'e*t and mo*t a,tie 0o4er*

+or t5eir 0ro0er o)e,t* +all )elo4 medio,rit. and la)o(r 4it5o(t

e++e,t& i+ ,on+ined to (n,on'enial 0(r*(it* And it i* t5en,e to )e

in+erred& t5at t5e re*(lt* o+ 5(man exertion ma. )e immen*el.

in,rea*ed ). dier*i+.in' it* o)e,t* B5en all t5e di++erent ind*o+ ind(*tr. o)tain in a ,omm(nit.& ea,5 indiid(al ,an +ind 5i*

0ro0er element& and ,an ,all [292] into a,tiit. t5e 45ole i'o(r

o+ 5i* nat(re And t5e ,omm(nit. i* )ene+itted ). t5e *eri,e* o+

it* re*0e,tie mem)er*& in t5e manner& in 45i,5 ea,5 ,an *ere it

4it5 mo*t e++e,t

=+ t5ere )e an.t5in' in a remar o+ten to )e met 4it5 DD namel.

t5at t5ere i*& in t5e 'eni(* o+ t5e 0eo0le o+ t5i* ,o(ntr.& a 0e,(liar

a0tit(de +or me,5ani, im0roement*& it 4o(ld o0erate a* a

+or,i)le rea*on +or 'iin' o00ort(nitie* to t5e exer,i*e o+ t5at

*0e,ie* o+ talent& ). t5e 0ro0a'ation o+ man(+a,t(re* {21/}

+. !s to the affording a more ample

and various field for enterprise.

T5i* al*o i* o+ 'reater ,on*e6(en,e in t5e 'eneral *,ale o+

national exertion& t5an mi'5t 0er5a0* on a *(0er+i,ial ie4 )e

*(00o*ed& and 5a* e++e,t* not alto'et5er di**imilar +rom t5o*e o+

t5e ,ir,(m*tan,e la*t noti,ed To ,5eri*5 and *tim(late t5e

a,tiit. o+ t5e 5(man mind& ). m(lti0l.in' t5e o)e,t* o+

enter0ri*e& i* not amon' t5e lea*t ,on*idera)le o+ t5e ex0edient*&

). 45i,5 t5e 4ealt5 o+ a nation ma. )e 0romoted Een t5in'* in

t5em*ele* not 0o*itiel. adanta'eo(*& *ometime* )e,ome *o&

). t5eir tenden,. to 0rooe exertion Eer. ne4 *,ene& 45i,5 i*

o0ened to t5e )(*. nat(re o+ man to ro(*e and exert it*el+& i* t5e

addition o+ a ne4 ener'. to t5e 'eneral *to, o+ e++ort

T5e *0irit o+ enter0ri*e& (*e+(l and 0roli+i, a* it i*& m(*t

ne,e**aril. )e ,ontra,ted or ex0anded in 0ro0ortion to t5e

*im0li,it. or ariet. o+ t5e o,D (984) ,(0ation* and 0rod(,tion*&

45i,5 are to )e +o(nd in a "o,iet. =t m(*t )e le** in a nation o+

mere ,(ltiator*& t5an in a nation o+ ,(ltiator* and mer,5ant*:le** in a nation o+ ,(ltiator* and mer,5ant*& t5an in a nation o+

,(ltiator*& arti+i,er* and mer,5ant*

. !s to the creating, in some instances, a new, and securing in

all a more certain and steady demand

for the surplus produce of the soil.

T5i* i* amon' t5e mo*t im0ortant o+ t5e ,ir,(m*tan,e* 45i,5

5ae )een indi,ated =t i* a 0rin,i0al mean& ). 45i,5 t5e

e*ta)li*5ment o+ man(+a,t(re* ,ontri)(te* to an a('mentation o+

t5e 0rod(,e or reen(e o+ a ,o(ntr.& and 5a* an immediate and

dire,t relation to t5e 0ro*0erit. o+ A'ri,(lt(re

=t i* eident& t5at t5e exertion* o+ t5e 5(*)andman 4ill )e

*tead. or +l(,t(atin'& i'oro(* or +ee)le& in 0ro0ortion to t5e

*teadine** or +l(,t(ation& ade6(atene**& or inade6(atene** o+ t5e

maret* on 45i,5 5e m(*t de0end& +or t5e ent o+ t5e *(r0l(*&

45i,5 ma. )e 0rod(,ed ). 5i* la)o(r: and t5at *(,5 *(r0l(* in

t5e ordinar. ,o(r*e o+ t5in'* 4ill )e 'reater or le** in t5e *ame

0ro0ortion {211}

or t5e 0(r0o*e o+ t5i* ent& a dome*ti, maret i* 'reatl. to )e

[29;] 0re+erred to a +orei'n one: )e,a(*e it i* in t5e nat(re o+

t5in'*& +ar more to )e relied (0on

=t i* a 0rimar. o)e,t o+ t5e 0oli,. o+ nation*& to )e a)le to

*(00l. t5em*ele* 4it5 *()*i*ten,e +rom t5eir o4n *oil*: and

man(+a,t(rin' nation*& a* +ar a* ,ir,(m*tan,e* 0ermit& endeaor

to 0ro,(re& +rom t5e *ame *o(r,e& t5e ra4 material* ne,e**ar. +or

t5eir o4n +a)ri,* T5i* di*0o*ition& (r'ed ). t5e *0irit o+

mono0ol.& i* *ometime* een ,arried to an in(di,io(* extreme

=t *eem* not al4a.* to )e re,olle,ted& t5at nation*& 45o 5ae

neit5er mine* nor man(+a,t(re*& ,an onl. o)tain t5e

man(+a,t(red arti,le*& o+ 45i,5 t5e. *tand in need& ). an

ex,5an'e o+ t5e 0rod(,t* o+ t5eir *oil*: and t5at& i+ t5o*e 45o ,an

)e*t +(rni*5 t5em 4it5 *(,5 arti,le* are (n4illin' to 'ie a d(e

,o(r*e to t5i* ex,5an'e& t5e. m(*t o+ ne,e**it. mae eer.

0o**i)le e++ort to man(+a,t(re +or t5em*ele*& t5e e++e,t o+ 45i,5

i* t5at t5e man(+a,t(rin' nation* a)ri'e t5e nat(ral adanta'e* o+t5eir *it(ation& t5ro('5 an (n4illin'ne** to 0ermit t5e

A'ri,(lt(ral ,o(ntrie* to eno. t5e adanta'e* o+ t5eir*& and

*a,ri+i,e t5e intere*t* o+ a m(t(all. )ene+i,ial inter,o(r*e to t5e

ain 0roe,t o+selling every thing and buying nothing.

$(t it i* al*o a ,on*e6(en,e o+ t5e 0oli,.& 45i,5 5a* )een

noted& t5at t5e +orei'n demand +or t5e 0rod(,t* o+ A'ri,(lt(ral

!o(ntrie*& i*& in a 'reat de'ree& rat5er ,a*(al and o,,a*ional& t5an

,ertain or ,on*tant To 45at extent in(rio(* interr(0tion* o+ t5e

demand +or *ome o+ t5e *ta0le ,ommoditie* o+ t5e United "tate*&

ma. 5ae )een ex0erien,ed& +rom t5at ,a(*e& m(*t )e re+erred to

t5e (d'ment o+ t5o*e 45o are en'a'ed in ,arr.in' on t5e

,ommer,e o+ t5e ,o(ntr.: )(t it ma. )e *a+el. a**(med& t5at *(,5

interr(0tion* are at time* er. in,onenientl. +elt& and t5at ,a*e*

not (n+re6(entl. o,,(r& in 45i,5 maret* are *o ,on+ined and

re*tri,ted& a* to render t5e demand er. (ne6(al to t5e *(00l.

=nde0endentl. (985) lie4i*e o+ t5e arti+i,ial im0ediment*&

45i,5 are ,reated ). t5e 0oli,. in 6(e*tion& t5ere are nat(ral

,a(*e* tendin' to render t5e external demand +or t5e *(r0l(* o+

A'ri,(lt(ral nation* a 0re,ario(* relian,e T5e di++eren,e* o+

*ea*on*& {212} in t5e ,o(ntrie*& 45i,5 are t5e ,on*(mer* mae

immen*e di++eren,e* in t5e 0rod(,e o+ t5eir o4n *oil*& in

di++erent .ear*: and ,on*e6(entl. in t5e de'ree* o+ t5eir ne,e**it.

+or +orei'n *(00l. Plenti+(l 5are*t* 4it5 t5em& e*0e,iall. i+

*imilar one* o,,(r at t5e *ame time in t5e ,o(ntrie*& 45i,5 are

t5e +(rni*5er*& o,,a*ion o+ ,o(r*e a 'l(t in t5e maret* o+ t5e

latter

!on*iderin' 5o4 +a*t and 5o4 m(,5 t5e 0ro're** o+ ne4

*ettlement* in t5e United "tate* m(*t in,rea*e t5e *(r0l(*

0rod(,e o+ t5e *oil& and 4ei'5in' *erio(*l. t5e tenden,. o+ t5e*.*tem& 45i,5 0reail* [29] amon' mo*t o+ t5e ,ommer,ial

nation* o+ E(ro0e: 45ateer de0enden,e ma. )e 0la,ed on t5e

+or,e o+ nat(ral ,ir,(m*tan,e* to ,o(ntera,t t5e e++e,t* o+ an

arti+i,ial 0oli,.: t5ere a00ear *tron' rea*on* to re'ard t5e +orei'n

demand +or t5at *(r0l(* a* too (n,ertain a relian,e& and to de*ire

a *()*tit(te +or it& in an exten*ie dome*ti, maret

To *e,(re *(,5 a maret& t5ere i* no ot5er ex0edient& t5an to

0romote man(+a,t(rin' e*ta)li*5ment* Man(+a,t(rer* 45o

,on*tit(te t5e mo*t n(mero(* ,la**& a+ter t5e !(ltiator* o+ land&

are +or t5at rea*on t5e 0rin,i0al ,on*(mer* o+ t5e *(r0l(* o+ t5eir

la)o(r

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T5i* idea o+ an exten*ie dome*ti, maret +or t5e *(r0l(*

0rod(,e o+ t5e *oil i* o+ t5e +ir*t ,on*e6(en,e =t i* o+ all t5in'*&

t5at 45i,5 mo*t e++e,t(all. ,ond(,e* to a +lo(ri*5in' *tate o+

A'ri,(lt(re =+ t5e e++e,t o+ man(+a,torie* *5o(ld )e to deta,5 a

0ortion o+ t5e 5and*& 45i,5 4o(ld ot5er4i*e )e en'a'ed in

Tilla'e& it mi'5t 0o**i)l. ,a(*e a *maller 6(antit. o+ land* to )e

(nder ,(ltiation )(t ). t5eir tenden,. to 0ro,(re a more ,ertain

demand +or t5e *(r0l(* 0rod(,e o+ t5e *oil& t5e. 4o(ld& at t5e

*ame time& ,a(*e t5e land* 45i,5 4ere in ,(ltiation to )e )etter

im0roed and more 0rod(,tie And 45ile& ). t5eir in+l(en,e& t5e

,ondition o+ ea,5 indiid(al +armer 4o(ld )e meliorated& t5e

total ma** o+ A'ri,(lt(ral 0rod(,tion 4o(ld 0ro)a)l. )e

in,rea*ed or t5i* m(*t eidentl. de0end a* m(,5& i+ not more&

(0on t5e de'ree o+ im0roement: t5an (0on t5e n(m)er o+ a,re*

(nder ,(lt(re

=t merit* 0arti,(lar o)*eration& t5at t5e m(lti0li,ation o+

man(+a,torie* not onl. +(rni*5e* a Maret +or t5o*e arti,le*&

{21;} 45i,5 5ae )een a,,(*tomed to )e 0rod(,ed in

a)(ndan,e& in a ,o(ntr.: )(t it lie4i*e ,reate* a demand +or

*(,5 a* 4ere eit5er (nno4n or 0rod(,ed in in,on*idera)le

6(antitie* T5e )o4el* a* 4ell a* t5e *(r+a,e o+ t5e eart5 are

ran*a,ed +or arti,le* 45i,5 4ere )e+ore ne'le,ted Animal*&

Plant* and Mineral* a,6(ire an (tilit. and al(e& 45i,5 4ere

)e+ore (nex0lored T5e +ore'oin' ,on*ideration* *eem *(++i,ient to e*ta)li*5& a*

'eneral 0ro0o*ition*& T5at it i* t5e intere*t o+ nation* to dier*i+.

t5e ind(*trio(* 0(r*(it* o+ t5e indiid(al*& 45o ,om0o*e t5em DD

T5at t5e e*ta)li*5ment o+ man(+a,t(re* i* ,al,(lated not onl. to

(986) in,rea*e t5e 'eneral *to, o+ (*e+(l and 0rod(,tie la)o(r:

)(t een to im0roe t5e *tate o+ A'ri,(lt(re in 0arti,(lar:

,ertainl. to adan,e t5e intere*t* o+ t5o*e 45o are en'a'ed in it

T5ere are ot5er ie4*& t5at 4ill )e 5erea+ter taen o+ t5e *()e,t&

45i,5& it i* ,on,eied& 4ill *ere to ,on+irm t5e*e in+eren,e*

=== Preio(*l. to a +(rt5er di*,(**ion o+ t5e o)e,tion* to t5e

en,o(ra'ement o+ man(+a,t(re* 45i,5 5ae )een *tated& it 4ill

)e o+ (*e to [29%] *ee 45at ,an )e *aid& in re+eren,e to t5e

0arti,(lar *it(ation o+ t5e United "tate*& a'ain*t t5e ,on,l(*ion*a00earin' to re*(lt +rom 45at 5a* )een alread. o++ered

=t ma. )e o)*ered& and t5e idea i* o+ no in,on*idera)le

4ei'5t& t5at 5o4eer tr(e it mi'5t )e& t5at a "tate& 45i,5

0o**e**in' lar'e tra,t* o+ a,ant and +ertile territor.& 4a* at t5e

*ame time *e,l(ded +rom +orei'n ,ommer,e& 4o(ld +ind it*

intere*t and t5e intere*t o+ A'ri,(lt(re& in diertin' a 0art o+ it*

0o0(lation +rom Tilla'e to Man(+a,t(re*: .et it 4ill not +ollo4&

t5at t5e *ame i* tr(e o+ a "tate& 45i,5 5ain' *(,5 a,ant and

+ertile territor.& 5a* at t5e *ame time am0le o00ort(nit. o+

0ro,(rin' +rom a)road& on 'ood term*& all t5e +a)ri,* o+ 45i,5 it

*tand* in need& +or t5e *(00l. o+ it* in5a)itant* T5e 0o4er o+

doin' t5i* at lea*t *e,(re* t5e 'reat adanta'e o+ a dii*ion o+

la)o(r: leain' t5e +armer +ree to 0(r*(e ex,l(*iel. t5e ,(lt(re

o+ 5i* land& and ena)lin' 5im to 0ro,(re 4it5 it* 0rod(,t* t5e

man(+a,t(red *(00lie* re6(i*ite eit5er to 5i* 4ant* or to 5i*eno.ment* And t5o('5 it *5o(ld )e tr(e& t5at in *ettled

,o(ntrie*& t5e dier*i+i,ation o+ =nd(*tr. i* ,ond(,ie to an

in,rea*e {21} in t5e 0rod(,tie 0o4er* o+ la)o(r& and to an

a('mentation o+ reen(e and ,a0ital: .et it i* *,ar,el.

,on,eia)le t5at t5ere ,an )e an. [t5in'] o+ *o *olid and

0ermanent adanta'e to an (n,(ltiated and (n0eo0led ,o(ntr.

a* to ,onert it* 4a*te* into ,(ltiated and in5a)ited di*tri,t* =+

t5e Reen(e& in t5e mean time& *5o(ld )e le**& t5e !a0ital& in t5e

eent& m(*t )e 'reater

To t5e*e o)*eration*& t5e +ollo4in' a00ear* to )e a

*ati*+a,tor. an*4er DD

1 =+ t5e *.*tem o+ 0er+e,t li)ert. to ind(*tr. and ,ommer,e

4ere t5e 0reailin' *.*tem o+ nation* DD t5e ar'(ment* 45i,5

di**(ade a ,o(ntr. in t5e 0redi,ament o+ t5e United "tate*& +rom

t5e Cealo(* 0(r*(it* o+ man(+a,t(re* 4o(ld do()tle** 5ae 'reat

+or,e =t 4ill not )e a++irmed& t5at t5e. mi'5t not )e 0ermitted&

4it5 +e4 ex,e0tion*& to *ere a* a r(le o+ national ,ond(,t =n

*(,5 a *tate o+ t5in'*& ea,5 ,o(ntr. 4o(ld 5ae t5e +(ll )ene+it o+

it* 0e,(liar adanta'e* to ,om0en*ate +or it* de+i,ien,ie* or

di*adanta'e* =+ one nation 4ere in ,ondition to *(00l.

man(+a,t(red arti,le* on )etter term* t5an anot5er& t5at ot5er

mi'5t +ind an a)(ndant indemni+i,ation in a *(0erior ,a0a,it. to

+(rni*5 t5e 0rod(,e o+ t5e *oil And a +ree ex,5an'e& m(t(all.

)ene+i,ial& o+ t5e ,ommoditie* 45i,5 ea,5 4a* a)le to *(00l.& on

t5e )e*t term*& mi'5t )e ,arried on )et4een t5em& *(00ortin' in

+(ll i'o(r t5e ind(*tr. o+ ea,5 And t5o('5 t5e ,ir,(m*tan,e*

45i,5 5ae )een mentioned and ot5er*& 45i,5 4ill )e (n+olded

5erea+ter render it 0ro)a)le& t5at nation* merel. A'ri,(lt(ral

4o(ld (987) not eno. t5e *ame de'ree o+ o0(len,e& in

0ro0ortion to [29] t5eir n(m)er*& a* t5o*e 45i,5 (nited

man(+a,t(re* 4it5 a'ri,(lt(re: .et t5e 0ro're**ie im0roement

o+ t5e land* o+ t5e +ormer mi'5t& in t5e end& atone +or an in+erior

de'ree o+ o0(len,e in t5e mean time and in a ,a*e in 45i,5o00o*ite ,on*ideration* are 0rett. e6(all. )alan,ed& t5e o0tion

o('5t 0er5a0* al4a.* to )e& in +ao(r o+ leain' =nd(*tr. to it*

o4n dire,tion

$(t t5e *.*tem 45i,5 5a* )een mentioned& i* +ar +rom

,5ara,teri*in' t5e 'eneral 0oli,. o+ Nation* T5e 0realent one

5a* )een re'(lated ). an o00o*ite *0irit

T5e ,on*e6(en,e o+ it i*& {21%} t5at t5e United "tate* are to a

,ertain extent in t5e *it(ation o+ a ,o(ntr. 0re,l(ded +rom +orei'n

!ommer,e T5e. ,an indeed& 4it5o(t di++i,(lt. o)tain +rom

a)road t5e man(+a,t(red *(00lie*& o+ 45i,5 t5e. are in 4ant: )(t

t5e. ex0erien,e n(mero(* and er. in(rio(* im0ediment* to t5e

emi**ion and ent o+ t5eir o4n ,ommoditie* Nor i* t5i* t5e ,a*e

in re+eren,e to a *in'le +orei'n nation onl. T5e re'(lation* o+

*eeral ,o(ntrie*& 4it5 45i,5 4e 5ae t5e mo*t exten*ieinter,o(r*e& t5ro4 *erio(* o)*tr(,tion* in t5e 4a. o+ t5e 0rin,i0al

*ta0le* o+ t5e United "tate*

=n *(,5 a 0o*ition o+ t5in'*& t5e United "tate* ,annot

ex,5an'e 4it5 E(ro0e on e6(al term*: and t5e 4ant o+

re,i0ro,it. 4o(ld render t5em t5e i,tim o+ a *.*tem& 45i,5

*5o(ld ind(,e t5em to ,on+ine t5eir ie4* to A'ri,(lt(re and

re+rain +rom Man(+a,t(re* A ,on*tant and en,rea*in' ne,e**it.&

on t5eir 0art& +or t5e ,ommoditie* o+ E(ro0e& and onl. a 0artial

and o,,a*ional demand +or t5eir o4n& in ret(rn& ,o(ld not )(t

ex0o*e t5em to a *tate o+ im0oeri*5ment& ,om0ared 4it5 t5e

o0(len,e to 45i,5 t5eir 0oliti,al and nat(ral adanta'e* a(t5ori*e

t5em to a*0ire

Remar* o+ t5i* ind are not made in t5e *0irit o+ ,om0laint

GTi* +or t5e nation*& 45o*e re'(lation* are all(ded to& to (d'e +or

t5em*ele*& 45et5er& ). aimin' at too m(,5 t5e. do not lo*emore t5an t5e. 'ain GTi* +or t5e United "tate* to ,on*ider ).

45at mean* t5e. ,an render t5em*ele* lea*t de0endent& on t5e

,om)ination*& ri'5t or 4ron' o+ +orei'n 0oli,.

=t i* no *mall ,on*olation& t5at alread. t5e mea*(re* 45i,5

5ae em)arra**ed o(r Trade& 5ae a,,elerated internal

im0roement*& 45i,5 (0on t5e 45ole 5ae )ettered o(r a++air*

To dier*i+. and extend t5e*e im0roement* i* t5e *(re*t and

*a+e*t met5od o+ indemni+.in' o(r*ele* +or an. in,onenien,e*&

45i,5 t5o*e or *imilar mea*(re* 5ae a tenden,. to )e'et =+

E(ro0e 4ill not tae +rom (* t5e 0rod(,t* o+ o(r *oil& (0on term*

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,on*i*tent 4it5 o(r intere*t& t5e nat(ral remed. i* to ,ontra,t a*

+a*t a* 0o**i)le o(r 4ant* o+ 5er

2 T5e ,oner*ion o+ t5eir 4a*te into ,(ltiated land* i*

,ertainl. a 0oint o+ 'reat moment in t5e 0oliti,al ,al,(lation*

{21} o+ t5e United [297] "tate* $(t t5e de'ree in 45i,5 t5i*

ma. 0o**i)l. )e retarded ). t5e en,o(ra'ement o+ man(+a,torie*

doe* not a00ear to ,o(nterail t5e 0o4er+(l ind(,ement* to

a++ordin' t5at en,o(ra'ement

An o)*eration made in anot5er 0la,e i* o+ a nat(re to 5ae

'reat in+l(en,e (0on t5i* 6(e*tion =+ it ,annot )e denied& t5at t5e

intere*t* een o+ (988) A'ri,(lt(re ma. )e adan,ed more ).

5ain' *(,5 o+ t5e land* o+ a *tate a* are o,,(0ied (nder 'ood

,(ltiation& t5an ). 5ain' a 'reater 6(antit. o,,(0ied (nder a

m(,5 in+erior ,(ltiation& and i+ Man(+a,torie*& +or t5e rea*on*

a**i'ned& m(*t )e admitted to 5ae a tenden,. to 0romote a more

*tead. and i'oro(* ,(ltiation o+ t5e land* o,,(0ied t5an 4o(ld

5a00en 4it5o(t t5em DD it 4ill +ollo4& t5at t5e. are ,a0a)le o+

indemni+.in' a ,o(ntr. +or a dimin(tion o+ t5e 0ro're** o+ ne4

*ettlement*: and ma. *ere to in,rea*e )ot5 t5e ,a0ital [al(e]

and t5e in,ome o+ it* land*& een t5o('5 t5e. *5o(ld a)ri'e t5e

n(m)er o+ a,re* (nder Tilla'e

$(t it doe*& ). no mean*& +ollo4& t5at t5e 0ro're** o+ ne4

*ettlement* 4o(ld )e retarded ). t5e exten*ion o+ Man(+a,t(re*

T5e de*ire o+ )ein' an inde0endent 0ro0rietor o+ land i* +o(ndedon *(,5 *tron' 0rin,i0le* in t5e 5(man )rea*t& t5at 45ere t5e

o00ort(nit. o+ )e,omin' *o i* a* 'reat a* it i* in t5e United

"tate*& t5e 0ro0ortion 4ill )e *mall o+ t5o*e& 45o*e *it(ation*

4o(ld ot5er4i*e lead to it& 45o 4o(ld )e dierted +rom it

to4ard* Man(+a,t(re* And it i* 5i'5l. 0ro)a)le& a* alread.

intimated& t5at t5e a,,e**ion* o+ +orei'ner*& 45o ori'inall. dra4n

oer ). man(+a,t(rin' ie4* 4o(ld a+ter4ard* a)andon t5em +or

A'ri,(lt(ral& 4o(ld )e more t5an e6(ialent +or t5o*e o+ o(r o4n

!itiCen*& 45o mi'5t 5a00en to )e deta,5ed +rom t5em

T5e remainin' o)e,tion* to a 0arti,(lar en,o(ra'ement o+

man(+a,t(re* in t5e United "tate* no4 re6(ire to )e examined

One o+ t5e*e t(rn* on t5e 0ro0o*ition& t5at =nd(*tr.& i+ le+t to

it*el+& 4ill nat(rall. +ind it* 4a. to t5e mo*t (*e+(l and 0ro+ita)le

em0lo.ment 45en,e it i* in+erred& t5at man(+a,t(re* 4it5o(t t5eaid o+ 'oernment 4ill 'ro4 (0 a* *oon and a* +a*t& a* t5e nat(ral

*tate o+ t5in'* and t5e intere*t o+ t5e ,omm(nit. ma. re6(ire

{217}

A'ain*t t5e *olidit. o+ t5i* 5.0ot5e*i*& in t5e +(ll latit(de o+

t5e term*& er. ,o'ent rea*on* ma. )e o++ered T5e*e 5ae

relation to t5e *tron' in+l(en,e o+ 5a)it and t5e *0irit o+ imitation

DD t5e +ear o+ 4ant o+ *(,,e** in (ntried enter0ri*e* DD t5e intrin*i,

di++i,(ltie* in,ident to +ir*t e**a.* to4ard* a ,om0etition 4it5

t5o*e 45o 5ae 0reio(*l. attained to 0er+e,tion in t5e )(*ine**

to )e attem0ted DD t5e )o(ntie* 0remi(m* and ot5er arti+i,ial

en,o(ra'ement*& 4it5 45i,5 +orei'n nation* *e,ond t5e exertion*

o+ t5eir o4n !itiCen* in t5e )ran,5e*& in 45i,5 t5e. are to )e

rialled [298]

Ex0erien,e tea,5e*& t5at men are o+ten *o m(,5 'oerned ).

45at t5e. are a,,(*tomed to *ee and 0ra,ti,e& t5at t5e *im0le*tand mo*t o)io(* im0roement*& in t5e [mo*t] ordinar.

o,,(0ation*& are ado0ted 4it5 5e*itation& rel(,tan,e and ). *lo4

'radation* T5e *0ontaneo(* tran*ition to ne4 0(r*(it*& in a

,omm(nit. lon' 5a)it(ated to di++erent one*& ma. )e ex0e,ted to

)e attended 4it5 0ro0ortiona)l. 'reater di++i,(lt. B5en +ormer

o,,(0ation* ,ea*ed to .ield a 0ro+it ade6(ate to t5e *()*i*ten,e o+

t5eir +ollo4er*& or 45en t5ere 4a* an a)*ol(te de+i,ien,. o+

em0lo.ment in t5em& o4in' to t5e *(0era)(ndan,e o+ 5and*&

,5an'e* 4o(ld en*(e: )(t t5e*e ,5an'e* 4o(ld )e liel. (989) to

)e more tard. t5an mi'5t ,on*i*t 4it5 t5e intere*t eit5er o+

indiid(al* or o+ t5e "o,iet. =n man. ,a*e* t5e. 4o(ld not

5a00en& 45ile a )are *(00ort ,o(ld )e en*(red ). an ad5eren,e

to an,ient ,o(r*e*: t5o('5 a re*ort to a more 0ro+ita)le

em0lo.ment mi'5t )e 0ra,ti,a)le To 0rod(,e t5e de*irea)le

,5an'e*& a* earl. a* ma. )e ex0edient& ma. t5ere+ore re6(ire t5e

in,itement and 0atrona'e o+ 'oernment

T5e a00re5en*ion o+ +ailin' in ne4 attem0t* i* 0er5a0* a more

*erio(* im0ediment T5ere are di*0o*ition* a0t to )e attra,ted ).

t5e mere noelt. o+ an (ndertain' DD )(t t5e*e are not al4a.*

t5o*e )e*t ,al,(lated to 'ie it *(,,e** To t5i*& it i* o+

im0ortan,e t5at t5e ,on+iden,e o+ ,a(tio(* *a'a,io(* ,a0itali*t*

)ot5 ,itiCen* and +orei'ner*& *5o(ld )e ex,ited And to in*0ire

t5i* de*,ri0tion o+ 0er*on* 4it5 ,on+iden,e& it i* e**ential& t5at

t5e. *5o(ld )e made to *ee in an. 0roe,t& 45i,5 i* ne4& {218}

and +or t5at rea*on alone& i+& +or no ot5er& 0re,ario(*& t5e 0ro*0e,t

o+ *(,5 a de'ree o+ ,o(ntenan,e and *(00ort +rom 'oernment& a*

ma. )e ,a0a)le o+ oer,omin' t5e o)*ta,le*& in*e0ara)le +rom

+ir*t ex0eriment*

T5e *(0eriorit. ante,edentl. eno.ed ). nation*& 45o 5ae

0reo,,(0ied and 0er+e,ted a )ran,5 o+ ind(*tr.& ,on*tit(te* a

more +ormida)le o)*ta,le& t5an eit5er o+ t5o*e& 45i,5 5ae )een

mentioned& to t5e introd(,tion o+ t5e *ame )ran,5 into a ,o(ntr.&

in 45i,5 it did not )e+ore exi*t To maintain )et4een t5e re,ent

e*ta)li*5ment* o+ one ,o(ntr. and t5e lon' mat(red

e*ta)li*5ment* o+ anot5er ,o(ntr.& a ,om0etition (0on e6(alterm*& )ot5 a* to 6(alit. and 0ri,e& i* in mo*t ,a*e* im0ra,ti,a)le

T5e di*0arit. in t5e one& or in t5e ot5er& or in )ot5& m(*t

ne,e**aril. )e *o ,on*idera)le a* to +or)id a *(,,e**+(l rial*5i0&

4it5o(t t5e extraordinar. aid and 0rote,tion o+ 'oernment

$(t t5e 'reate*t o)*ta,le o+ all to t5e *(,,e**+(l 0ro*e,(tion o+

a ne4 )ran,5 o+ ind(*tr. in a ,o(ntr.& in 45i,5 it 4a* )e+ore

(nno4n& ,on*i*t*& a* +ar a* t5e in*tan,e* a00l.& in t5e )o(ntie*

0remi(m* and ot5er aid* 45i,5 are 'ranted& in a ariet. o+ ,a*e*&

). t5e [299] nation*& in 45i,5 t5e e*ta)li*5ment* to )e imitated

are 0reio(*l. introd(,ed =t i* 4ell no4n >and 0arti,(lar

exam0le* in t5e ,o(r*e o+ t5i* re0ort 4ill )e ,ited? t5at ,ertain

nation* 'rant )o(ntie* on t5e ex0ortation o+ 0arti,(lar

,ommoditie*& to ena)le t5eir o4n 4ormen to (nder*ell and

*(00lant all ,om0etitor*& in t5e ,o(ntrie* to 45i,5 t5o*e

,ommoditie* are *ent Hen,e t5e (ndertaer* o+ a ne4

man(+a,t(re 5ae to ,ontend not onl. 4it5 t5e nat(ral

di*adanta'e* o+ a ne4 (ndertain'& )(t 4it5 t5e 'rat(itie* and

rem(neration* 45i,5 ot5er 'oernment* )e*to4 To )e ena)led

to ,ontend 4it5 *(,,e**& it i* eident& t5at t5e inter+eren,e and aid

o+ t5eir o4n 'oernment are indi*0en*a)le

!om)ination* ). t5o*e en'a'ed in a 0arti,(lar )ran,5 o+

)(*ine** in one ,o(ntr.& to +r(*trate t5e +ir*t e++ort* to introd(,e

it into anot5er& ). tem0orar. *a,ri+i,e*& re,om0en*ed 0er5a0* ).

extraordinar. indemni+i,ation* o+ t5e 'oernment o+ *(,5

,o(ntr.& are )elieed to 5ae exi*ted& and are not to )e re'arded

a* de*tit(te o+ 0ro)a)ilit. (990) T5e exi*ten,e or a**(ran,e o+

aid {219} +rom t5e 'oernment o+ t5e ,o(ntr.& in 45i,5 t5e

)(*ine** i* to )e introd(,ed& ma. )e e**ential to +orti+.

adent(rer* a'ain*t t5e dread o+ *(,5 ,om)ination*& to de+eatt5eir e++e,t*& i+ +ormed and to 0reent t5eir )ein' +ormed& ).

demon*tratin' t5at t5e. m(*t in t5e end 0roe +r(itle**

B5ateer room t5ere ma. )e +or an ex0e,tation t5at t5e

ind(*tr. o+ a 0eo0le& (nder t5e dire,tion o+ 0riate intere*t& 4ill

(0on e6(al term* +ind o(t t5e mo*t )ene+i,ial em0lo.ment +or

it*el+& t5ere i* none +or a relian,e& t5at it 4ill *tr(''le a'ain*t t5e

+or,e o+ (ne6(al term*& or 4ill o+ it*el+ *(rmo(nt all t5e

adentitio(* )arrier* to a *(,,e**+(l ,om0etition& 45i,5 ma. 5ae

)een ere,ted eit5er ). t5e adanta'e* nat(rall. a,6(ired +rom

0ra,ti,e and 0reio(* 0o**e**ion o+ t5e 'ro(nd& or ). t5o*e

45i,5 ma. 5ae *0r(n' +rom 0o*itie re'(lation* and an arti+i,ial

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9/22

0oli,. T5i* 'eneral re+le,tion mi'5t alone *(++i,e a* an an*4er to

t5e o)e,tion (nder examination: ex,l(*iel. o+ t5e 4ei'5t.

,on*ideration* 45i,5 5ae )een 0arti,(larl. (r'ed {219}

T5e o)e,tion* to t5e 0(r*(it o+ man(+a,t(re* in t5e United

"tate*& 45i,5 next 0re*ent t5em*ele* to di*,(**ion& re0re*ent an

im0ra,ti,a)ilit. o+ *(,,e**& ari*in' +rom t5ree ,a(*e* DD *,ar,it.

o+ 5and@earne** o+ la)o(r DD 4ant o+ ,a0ital

T5e t4o +ir*t ,ir,(m*tan,e* are to a ,ertain extent real& and&

4it5in d(e limit*& o('5t to )e admitted a* o)*ta,le* to t5e *(,,e**

o+ man(+a,t(rin' enter0ri*e in t5e United "tate* $(t t5ere are

ario(* ,on*ideration*& 45i,5 le**en t5eir +or,e& and tend to

a++ord an a**(ran,e t5at t5e. are not *(++i,ient to 0reent t5e

adanta'eo(* 0ro*e,(tion o+ man. er. (*e+(l and exten*ie

man(+a,torie*

Bit5 re'ard to *,ar,it. o+ 5and*& t5e +a,t it*el+ m(*t )e

a00lied [;//] 4it5 no *mall 6(ali+i,ation to ,ertain 0art* o+ t5e

United "tate* T5ere are lar'e di*tri,t*& 45i,5 ma. )e ,on*idered

a* 0rett. +(ll. 0eo0led: and 45i,5 not4it5*tandin' a ,ontin(al

drain +or di*tant *ettlement& are t5i,l. inter*0er*ed 4it5

+lo(ri*5in' and in,rea*in' to4n* =+ t5e*e di*tri,t* 5ae not

alread. rea,5ed t5e 0oint& at 45i,5 t5e ,om0laint o+ *,ar,it. o+

5and* ,ea*e*& t5e. are not remote +rom it& and are a00roa,5in'

+a*t to4ard* it And 5ain' 0er5a0* +e4er attra,tion* to

a'ri,(lt(re& {22/} t5an *ome ot5er 0art* o+ t5e Union& t5e.ex5i)it a 0ro0ortiona)l. *tron'er tenden,. to4ard* ot5er ind* o+

ind(*tr. =n t5e*e di*tri,t*& ma. )e di*,erned& no in,on*idera)le

mat(rit. +or man(+a,t(rin' e*ta)li*5ment*

$(t t5ere are ,ir,(m*tan,e*& 45i,5 5ae )een alread. noti,ed

4it5 anot5er ie4& t5at materiall. dimini*5 eer. 45ere t5e e++e,t

o+ a *,ar,it. o+ 5and* T5e*e ,ir,(m*tan,e* are DD t5e 'reat (*e

45i,5 ,an )e made o+ 4omen and ,5ildren: on 45i,5 0oint a

er. 0re'nant and in*tr(,tie +a,t 5a* )een mentioned DD t5e a*t

exten*ion 'ien ). late im0roement* to t5e em0lo.ment o+

Ma,5ine*& 45i,5 *()*tit(tin' t5e A'en,. o+ +ire and 4ater& 5a*

0rodi'io(*l. le**ened t5e ne,e**it. +or man(al la)or DD t5e

em0lo.ment o+ 0er*on* ordinaril. en'a'ed in ot5er o,,(0ation*&

d(rin' t5e *ea*on*& or 5o(r* o+ lei*(re: 45i,5& )e*ide* 'iin'

o,,a*ion to t5e exertion o+ a 'reater 6(antit. o+ (991) la)o(r ).t5e *ame n(m)er o+ 0er*on*& and t5ere). en,rea*in' t5e 'eneral

*to, o+ la)o(r& a* 5a* )een el*e45ere remared& ma. al*o )e

taen into t5e ,al,(lation& a* a re*o(r,e +or o)iatin' t5e *,ar,it.

o+ 5and* DD la*tl. t5e attra,tion o+ +orei'n emi'rant* B5oeer

in*0e,t*& 4it5 a ,are+(l e.e& t5e ,om0o*ition o+ o(r to4n* 4ill )e

made *en*i)le to 45at an extent t5i* re*o(r,e ma. )e relied (0on

T5i* ex5i)it* a lar'e 0ro0ortion o+ in'enio(* and al(a)le

4ormen& in di++erent art* and trade*& 45o& ). ex0atriatin' +rom

E(ro0e& 5ae im0roed t5eir o4n ,ondition& and added to t5e

ind(*tr. and 4ealt5 o+ t5e United "tate* =t i* a nat(ral in+eren,e

+rom t5e ex0erien,e& 4e 5ae alread. 5ad& t5at a* *oon a* t5e

United "tate* *5all 0re*ent t5e ,o(ntenan,e o+ a *erio(*

0ro*e,(tion o+ Man(+a,t(re* DD a* *oon a* +orei'n arti*t* *5all )e

made *en*i)le t5at t5e *tate o+ t5in'* 5ere a++ord* a moral

,ertaint. o+ em0lo.ment and en,o(ra'ement DD ,om0etentn(m)er* o+ E(ro0ean 4ormen 4ill tran*0lant t5em*ele*&

e++e,t(all. to en*(re t5e *(,,e** o+ t5e de*i'n Ho4 indeed ,an it

ot5er4i*e 5a00en ,on*iderin' t5e ario(* and 0o4er+(l

ind(,ement*& 45i,5 t5e *it(ation o+ t5i* ,o(ntr. o++er*:

addre**in' t5em*ele* to *o man. *tron' 0a**ion* and +eelin'*& to

*o man. 'eneral and 0arti,(lar intere*t*L

=t ma. )e a++irmed t5ere+ore& in re*0e,t to 5and* +or ,arr.in'

{221} on man(+a,t(re*& t5at 4e *5all in a 'reat mea*(re trade

(0on a +orei'n "to,: re*erin' o(r o4n& +or t5e ,(ltiation o+

o(r land* and t5e [;/1] mannin' o+ o(r "5i0*: a* +ar a* ,5ara,ter

and ,ir,(m*tan,e* [*5all] in,line =t i* not (n4ort5. o+ remar&

t5at t5e o)e,tion to t5e *(,,e** o+ man(+a,t(re*& ded(,ed +rom

t5e *,ar,it. o+ 5and*& i* alie a00li,a)le to Trade and Nai'ation:

and .et t5e*e are 0er,eied to +lo(ri*5& 4it5o(t an. *en*i)le

im0ediment +rom t5at ,a(*e

A* to t5e dearne** o+ la)o(r >anot5er o+ t5e o)*ta,le*

alled'ed? t5i* 5a* relation 0rin,i0all. to t4o ,ir,(m*tan,e*& one

t5at 45i,5 5a* )een (*t di*,(**ed& or t5e *,ar,it. o+ 5and*& t5e

ot5er& t5e 'reatne** o+ 0ro+it*

A* +ar a* it i* a ,on*e6(en,e o+ t5e *,ar,it. o+ 5and*& it i*

miti'ated ). all t5e ,on*ideration* 45i,5 5ae )een add(,ed a*

le**enin' t5at de+i,ien,.

=t i* ,ertain too& t5at t5e di*0arit. in t5i* re*0e,t& )et4een

*ome o+ t5e mo*t man(+a,t(rin' 0art* o+ E(ro0e and a lar'e

0ro0ortion o+ t5e United "tate*& i* not nearl. *o 'reat a* i*

,ommonl. ima'ined =t i* al*o m(,5 le** in re'ard to Arti+i,er*

and man(+a,t(rer* t5an in re'ard to ,o(ntr. la)o(rer*: and 45ile

a ,are+(l ,om0ari*on *5e4*& t5at t5ere i*& in t5i* 0arti,(lar& m(,5

exa''eration: it i* al*o eident t5at t5e e++e,t o+ t5e de'ree o+

di*0arit.& 45i,5 doe* tr(l. exi*t& i* dimini*5ed in 0ro0ortion to

t5e (*e 45i,5 ,an )e made o+ ma,5iner.

To ill(*trate t5i* la*t idea DD Iet it )e *(00o*ed& t5at t5e

di++eren,e o+ 0ri,e& in t4o !o(ntrie*& o+ a 'ien 6(antit. o+

man(al la)o(r re6(i*ite to t5e +a)ri,ation o+ a 'ien arti,le i* a*

1/: and t5at *ome mechanic power i* introd(,ed into )ot5,o(ntrie*& 45i,5 0er+ormin' 5al+ t5e ne,e**ar. la)o(r& leae*

onl. 5al+ to )e done ). 5and& it i* eident& t5at t5e di++eren,e in

t5e ,o*t o+ t5e +a)riD (992) ,ation o+ t5e arti,le in 6(e*tion& in t5e

t4o ,o(ntrie*& a* +ar a* it i* ,onne,ted 4it5 t5e 0ri,e o+ la)o(r&

4ill )e red(,ed +rom 1/ to %& in ,on*e6(en,e o+ t5e introd(,tion

o+ t5atpower.

T5i* ,ir,(m*tan,e i* 4ort5. o+ t5e mo*t 0arti,(lar attention =t

dimini*5e* immen*el. one o+ t5e o)e,tion* mo*t *tren(o(*l.

(r'ed& a'ain*t t5e *(,,e** o+ man(+a,t(re* in t5e United "tate*

To 0ro,(re all *(,5 ma,5ine* a* are no4n in an. 0art o+

E(ro0e& ,an onl. re6(ire a 0ro0er 0roi*ion and d(e 0ain* T5e

{222} no4led'e o+ *eeral o+ t5e mo*t im0ortant o+ t5em i*

alread. 0o**e**ed T5e 0re0aration o+ t5em 5ere& i* in mo*t ,a*e*&

0ra,ti,a)le on nearl. e6(al term* A* +ar a* t5e. de0end onBater& *ome *(0eriorit. o+ adanta'e* ma. )e ,laimed& +rom t5e

(n,ommon ariet. and 'reater ,5ea0ne** o+ *it(ation* ada0ted to

Mill *eat*& 4it5 45i,5 di++erent 0art* o+ t5e United "tate*

a)o(nd

"o +ar a* t5e dearne** o+ la)o(r ma. )e a ,on*e6(en,e o+ t5e

'reatne** o+ 0ro+it* in an. )ran,5 o+ )(*ine**& it i* no o)*ta,le to

it* *(,,e** T5e Undertaer ,an a++ord to 0a. t5e 0ri,e [;/2]

T5ere are 'ro(nd* to ,on,l(de t5at (ndertaer* o+

Man(+a,t(re* in t5i* !o(ntr. ,an at t5i* time a++ord to 0a. 5i'5er

4a'e* to t5e 4ormen t5e. ma. em0lo. t5an are 0aid to *imilar

4ormen in E(ro0e T5e 0ri,e* o+ +orei'n +a)ri,*& in t5e maret*

o+ t5e United "tate*& 45i,5 4ill +or a lon' time re'(late t5e

0ri,e* o+ t5e dome*ti, one*& ma. )e ,on*idered a* ,om0o(nded

o+ t5e +ollo4in' in'redient* DD T5e +ir*t ,o*t o+ material*&

in,l(din' t5e Taxe*& i+ an.& 45i,5 are 0aid (0on t5em 45ere t5e.are made t5e ex0en,e o+ 'ro(nd*& )(ildin'* ma,5iner. and tool*

t5e 4a'e* o+ t5e 0er*on* em0lo.ed in t5e man(+a,tor. t5e

0ro+it* on t5e ,a0ital or "to, em0lo.ed t5e ,ommi**ion* o+

A'ent* to 0(r,5a*e t5em 45ere t5e. are made: t5e ex0en,e o+

tran*0ortation to t5e United "tate* [in,l(din' in*(ran,e and ot5er

in,idental ,5ar'e*:] t5e taxe* or d(tie*& i+ an. [and +ee* o+ o++i,e]

45i,5 are 0aid on t5eir ex0ortation t5e taxe* or d(tie* [and +ee*

o+ o++i,e] 45i,5 are 0aid on t5eir im0ortation

A* to t5e +ir*t o+ t5e*e item*& t5e ,o*t o+ material*& t5e

adanta'e (0on t5e 45ole& i* at 0re*ent on t5e *ide o+ t5e United

"tate*& and t5e di++eren,e& in t5eir +aor& m(*t in,rea*e& in

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0ro0ortion a* a ,ertain and exten*ie dome*ti, demand *5all

ind(,e t5e 0ro0rietor* o+ land to deote more o+ t5eir attention to

t5e 0rod(,tion o+ t5o*e material* =t o('5t not to e*,a0e

o)*eration& in a ,om0ari*on on t5i* 0oint& t5at *ome o+ t5e

0rin,i0al man(+a,t(rin' !o(ntrie* o+ E(ro0e are m(,5 more

de0endent on +orei'n *(00l. +or t5e material* o+ t5eir

man(+a,t(re*& t5an 4o(ld )e t5e United "tate*& 45o are ,a0a)le

o+ *(00l.in' t5em*ele*& 4it5 a 'reater a)(ndan,e& a* 4ell a* a

'reater ariet. o+ t5e re6(i*ite material* {22;}

A* to t5e *e,ond item& t5e ex0en,e o+ 'ro(nd* )(ildin'*

ma,5iner. and tool*& an e6(alit. at lea*t ma. )e a**(med: *in,e

adanta'e* in *ome 0arti,(lar* 4ill ,o(nter)alan,e tem0orar.

di*adanta'e* in ot5er*

A* to t5e t5ird item& or t5e arti,le o+ 4a'e*& t5e ,om0ari*on

,ertainl. t(rn* a'ain*t t5e United (993) "tate*& t5o('5 a* )e+ore

o)*ered not in *o 'reat a de'ree a* i* ,ommonl. *(00o*ed

T5e +o(rt5 item i* alie a00li,a)le to t5e +orei'n and to t5e

dome*ti, man(+a,t(re =t i* indeed more 0ro0erl. a result t5an a

0arti,(lar& to )e ,om0ared

$(t 4it5 re*0e,t to all t5e remainin' item*& t5e. are alone

a00li,a)le to t5e +orei'n man(+a,t(re& and in t5e *tri,te*t *en*e

extraordinarie*: ,on*tit(tin' a *(m o+ extra ,5ar'e on t5e +orei'n

+a)ri,& 45i,5 ,annot )e e*timated& at le** t5an [+rom 1% to ;/1 19

!ent on t5e ,o*t o+ it at t5e man(+a,tor. T5i* *(m o+ extra ,5ar'e ma. ,on+identl. )e re'arded a* more

t5an a !o(nter0oi*e +or t5e real di++eren,e in t5e 0ri,e o+ la)o(r:

and [;/;] i* a *ati*+a,tor. 0roo+ t5at man(+a,t(re* ma. 0ro*0er

in de+ian,e o+ it in t5e United "tate* To t5e 'eneral alle'ation&

,onne,ted 4it5 t5e ,ir,(m*tan,e* o+ *,ar,it. o+ 5and* and

dearne** o+ la)o(r& t5at exten*ie man(+a,t(re* ,an onl. 'ro4

o(t o+ a red(ndant or +(ll 0o0(lation& it 4ill )e *(++i,ient& to

an*4er 'enerall.& t5at t5e +a,t 5a* )een ot5er4i*e DD T5at t5e

*it(ation alle'ed to )e an e**ential ,ondition o+ *(,,e**& 5a* not

)een t5at o+ *eeral nation*& at 0eriod* 45en t5e. 5ad alread.

attained to mat(rit. in a ariet. o+ man(+a,t(re*

T5e *(00o*ed 4ant o+ !a0ital +or t5e 0ro*e,(tion o+

man(+a,t(re* in t5e United "tate* i* t5e mo*t inde+inite o+ t5e

o)e,tion* 45i,5 are (*(all. o00o*ed to it =t i* er. di++i,(lt to 0rono(n,e an. t5in' 0re,i*e ,on,ernin'

t5e real extent o+ t5e monied ,a0ital o+ a !o(ntr.& and *till more

,on,ernin' t5e 0ro0ortion 45i,5 it )ear* to t5e o)e,t* t5at inite

t5e em0lo.ment o+ !a0ital =t i* not le** di++i,(lt to 0rono(n,e

5o4 +ar t5e effecto+ an. 'ien 6(antit. o+ mone.& a* ,a0ital& or in

ot5er 4ord*& a* a medi(m +or ,ir,(latin' t5e ind(*tr. and

0ro0ert. o+ a nation& ma. )e en,rea*ed ). t5e er. ,ir,(m*tan,e

{22} o+ t5e additional motion& 45i,5 i* 'ien to it ). ne4

o)e,t* o+ em0lo.ment T5at e++e,t& lie t5e moment(m o+

de*,endin' )odie*& ma. not im0ro0erl. )e re0re*ented& a* in a

,om0o(nd ratio to mass and velocity. =t *eem* 0rett. ,ertain& t5at

a 'ien *(m o+ mone.& in a *it(ation& in 45i,5 t5e 6(i, im0(l*e*

o+ ,ommer,ial a,tiit. 4ere little +elt& 4o(ld a00ear inade6(ate

to t5e ,ir,(lation o+ a* 'reat a 6(antit. o+ ind(*tr. and 0ro0ert.&

a* in one& in 45i,5 t5eir +(ll in+l(en,e 4a* ex0erien,ed =t i* not o)io(*& 45. t5e *ame o)e,tion mi'5t not a* 4ell )e

made to external ,ommer,e a* to man(+a,t(re*: *in,e it i*

mani+e*t t5at o(r immen*e tra,t* o+ land o,,(0ied and

(no,,(0ied are ,a0a)le o+ 'iin' em0lo.ment to more ,a0ital

t5an i* a,t(all. )e*to4ed (0on t5em =t i* ,ertain& t5at t5e United

"tate* o++er a a*t +ield +or t5e adanta'eo(* em0lo.ment o+

!a0ital: )(t it doe* not +ollo4& t5at t5ere 4ill not )e +o(nd& in

one 4a. or anot5er& a *(++i,ient +(nd +or t5e *(,,e**+(l

0ro*e,(tion o+ an. *0e,ie* o+ ind(*tr. 45i,5 i* liel. to 0roe

tr(l. )ene+i,ial

T5e +ollo4in' ,on*ideration* are o+ a nat(re to remoe all

in6(iet(de on t5e *,ore o+ 4ant o+ !a0ital

T5e introd(,tion o+ $an*& a* 5a* )een *5e4n (994) on

anot5er o,,a*ion 5a* a 0o4er+(l tenden,. to extend t5e a,tie

!a0ital o+ a !o(ntr. Ex0erien,e o+ t5e Utilit. o+ t5e*e

=n*tit(tion* i* m(lti0l.in' t5em in t5e United "tate* =t i*

0ro)a)le t5at t5e. 4ill )e e*ta)li*5ed 45ereer t5e. ,an exi*t

4it5 adanta'e: and 45ereer& t5e. ,an )e *(00orted& i+

admini*tered 4it5 0r(den,e& t5e. 4ill add ne4 ener'ie* to all

0e,(niar. o0eration* [;/]

T5e aid o+ +orei'n !a0ital ma. *a+el.& and& 4it5 ,on*idera)le

latit(de )e taen into ,al,(lation =t* in*tr(mentalit. 5a* )een

lon' ex0erien,ed in o(r external ,ommer,e: and it 5a* )e'(n to

)e +elt in ario(* ot5er mode* Not onl. o(r +(nd*& )(t o(r

A'ri,(lt(re and ot5er internal im0roement* 5ae )een animated

). it =t 5a* alread. in a +e4 in*tan,e* extended een to o(r

man(+a,t(re*

=t i* a 4ell no4n +a,t& t5at t5ere are 0art* o+ E(ro0e& 45i,5

5ae more !a0ital& t5an 0ro+ita)le dome*ti, o)e,t* o+

em0lo.ment Hen,e& amon' ot5er 0roo+*& t5e lar'e loan*

,ontin(all. +(rni*5ed to +orei'n *tate* And it i* e6(all. ,ertain

t5at t5e {22%} ,a0ital o+ ot5er 0art* ma. +ind more 0ro+ita)le

em0lo.ment in t5e United "tate*& t5an at 5ome And

not4it5*tandin' t5ere are 4ei'5t. ind(,ement* to 0re+er t5eem0lo.ment o+ ,a0ital at 5ome een at le** 0ro+it& to an

ine*tment o+ it a)road& t5o('5 4it5 'reater 'ain& .et t5e*e

ind(,ement* are oerr(led eit5er ). a de+i,ien,. o+ em0lo.ment

or ). a er. material di++eren,e in 0ro+it $ot5 t5e*e !a(*e*

o0erate to 0rod(,e a tran*+er o+ +orei'n ,a0ital to t5e United

"tate* GTi* ,ertain& t5at ario(* o)e,t* in t5i* ,o(ntr. 5old o(t

adanta'e*& 45i,5 are 4it5 di++i,(lt. to )e e6(alled el*e45ere:

and (nder t5e in,rea*in'l. +aora)le im0re**ion*& 45i,5 are

entertained o+ o(r 'oernment& t5e attra,tion* 4ill )e,ome more

and More *tron' T5e*e im0re**ion* 4ill 0roe a ri,5 mine o+

0ro*0erit. to t5e !o(ntr.& i+ t5e. are ,on+irmed and *tren't5ened

). t5e 0ro're** o+ o(r a++air* And to *e,(re t5i* adanta'e& little

more i* no4 ne,e**ar.& t5an to +o*ter ind(*tr.& and ,(ltiate

order and tran6(ilit.& at 5ome and a)road =t i* not im0o**i)le& t5at t5ere ma. )e 0er*on* di*0o*ed to

loo 4it5 a ealo(* e.e on t5e introd(,tion o+ +orei'n !a0ital& a*

i+ it 4ere an in*tr(ment to de0rie o(r o4n ,itiCen* o+ t5e 0ro+it*

o+ o(r o4n ind(*tr. $(t 0er5a0* t5ere neer ,o(ld )e a more

(nrea*ona)le ealo(*. =n*tead o+ )ein' ie4ed a* a rial& it

o('5t to )e !on*idered a* a mo*t al(a)le a(xiliar.: ,ond(,in'

to 0(t in Motion a 'reater (antit. o+ 0rod(,tie la)o(r& and a

'reater 0ortion o+ (*e+(l enter0ri*e t5an ,o(ld exi*t 4it5o(t it =t

i* at lea*t eident& t5at in a !o(ntr. *it(ated lie t5e United

"tate*& 4it5 an in+inite +(nd o+ re*o(r,e* .et to )e (n+olded&

eer. +art5in' o+ +orei'n ,a0ital& 45i,5 i* laid o(t in internal

amelioration*& and in ind(*trio(* e*ta)li*5ment* o+ a 0ermanent

nat(re& i* a 0re,io(* a,6(i*ition

And 45ateer )e t5e o)e,t* 45i,5 ori'inall. attra,t +orei'n

!a0ital& 45en on,e introd(,ed& it ma. )e dire,ted to4ard* an.0(r0o*e o+ )ene+i,ial exertion& 45i,5 i* de*ired And to detain it

amon' (*& t5ere ,an )e no ex0edient *o e++e,t(al a* to enlar'e t5e

*05ere& 4it5in 45i,5 it ma. )e (*e+(ll. em0lo.ed T5o('5

ind(,ed merel. [;/%] 4it5 ie4* to *0e,(lation* in t5e +(nd*& it

ma. a+terD (995) 4ard* )e rendered *()*erient to t5e =ntere*t* o+

A'ri,(lt(re& !ommer,e J Man(+a,t(re* {22}

$(t t5e attra,tion o+ +orei'n !a0ital +or t5e dire,t 0(r0o*e o+

Man(+a,t(re* o('5t not to )e deemed a ,5imerial ex0e,tation

T5ere are alread. exam0le* o+ it& a* remared in anot5er 0la,e

And t5e exam0le*& i+ t5e di*0o*ition )e ,(ltiated ,an 5ardl. +ail

to m(lti0l. T5ere are al*o in*tan,e* o+ anot5er ind& 45i,5 *ere

7/28/2019 Report on Manufactures by Alexander Hamilton

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to *tren't5en t5e ex0e,tation Enter0ri*e* +or im0roin' t5e

P()li, !omm(ni,ation*& ). ,(ttin' ,anal*& o0enin' t5e

o)*tr(,tion* in Rier* and ere,tin' )rid'e*& 5ae re,eied er.

material aid +rom t5e *ame *o(r,e

B5en t5e Man(+a,t(rin' !a0itali*t o+ E(ro0e *5all adert to

t5e man. im0ortant adanta'e*& 45i,5 5ae )een intimated& in

t5e !o(r*e o+ t5i* re0ort& 5e ,annot )(t 0er,eie er. 0o4er+(l

ind(,ement* to a tran*+er o+ 5im*el+ and 5i* !a0ital to t5e United

"tate* Amon' t5e re+le,tion*& 45i,5 a mo*t intere*tin'

0e,(liarit. o+ *it(ation i* ,al,(lated to *(''e*t& it ,annot e*,a0e

5i* o)*eration& a* a ,ir,(m*tan,e o+ Moment in t5e ,al,(lation&

t5at t5e 0ro're**ie 0o0(lation and im0roement o+ t5e United

"tate*& in*(re a ,ontin(all. in,rea*in' dome*ti, demand +or t5e

+a)ri,* 45i,5 5e *5all 0rod(,e& not to )e a++e,ted ). an. external

,a*(altie* or i,i**it(de*

$(t 45ile t5ere are !ir,(m*tan,e* *(++i,ientl. *tron' to

a(t5ori*e a ,on*idera)le de'ree o+ relian,e on t5e aid o+ +orei'n

!a0ital to4ard* t5e attainment o+ t5e o)e,t in ie4& it i*

*ati*+a,tor. to 5ae 'ood 'ro(nd* o+ a**(ran,e& t5at t5ere are

dome*ti, re*o(r,e* o+ t5em*ele* ade6(ate to it =t 5a00en*& t5at

t5ere i* a *0e,ie* o+ !a0ital a,t(all. exi*tin' 4it5in t5e United

"tate*& 45i,5 reliee* +rom all in6(iet(de on t5e *,ore o+ 4ant o+

!a0ital DD T5i* i* t5e +(nded #e)t

T5e e++e,t o+ a +(nded de)t& a* a *0e,ie* o+ !a0ital& 5a* )eenNoti,ed (0on a +ormer O,,a*ion: )(t a more 0arti,(lar

el(,idation o+ t5e 0oint *eem* to )e re6(ired ). t5e *tre** 45i,5

i* 5ere laid (0on it T5i* *5all a,,ordin'l. )e attem0ted

P()li, (nd* an*4er t5e 0(r0o*e o+ !a0ital& +rom t5e

e*timation in 45i,5 t5e. are (*(all. 5eld ). Monied men: and

,on*e6(entl. +rom t5e Ea*e and di*0at,5 4it5 45i,5 t5e. ,an )e

t(rned into mone. T5i* ,a0a,it. o+ 0rom0t ,onerti)ilit. into

mone. ,a(*e* a tran*+er o+ *to, to )e in a 'reat n(m)er o+

{227} !a*e* e6(ialent to a 0a.ment in ,oin And 45ere it doe*

not 5a00en to *(it t5e 0art. 45o i* to re,eie& to a,,e0t a tran*+er

o+ "to,& t5e 0art. 45o i* to 0a.& i* neer at a lo** to +ind

el*e45ere a 0(r,5a*er o+ 5i* "to,& 45o 4ill +(rni*5 5im in lie(

o+ it& 4it5 t5e !oin o+ 45i,5 5e *tand* in need Hen,e in a *o(nd

and *ettled *tate o+ t5e 0()li, +(nd*& a man 0o**e**ed [;/] o+ a

*(m in t5em ,an em)ra,e an. *,5eme o+ )(*ine**& 45i,5 o++er*&

4it5 a* m(,5 ,on+iden,e a* i+ 5e 4ere 0o**e**ed o+ an e6(al *(m

in !oin

T5i* o0eration o+ 0()li, +(nd* a* ,a0ital i* too o)io(* to )e

denied: )(t it i* o)e,ted to t5e =dea o+ t5eir o0eratin' a* an

augmentation o+ t5e !a0ital o+ t5e ,omm(nit.& t5at t5e. *ere to

o,,a*ion t5e destruction o+ *ome ot5er ,a0ital to an e6(al

amo(nt

(996) T5e !a0ital 45i,5 alone t5e. ,an )e *(00o*ed to

de*tro. m(*t ,on*i*t o+ DD T5e ann(al reen(e& 45i,5 i* a00lied

to t5e 0a.ment o+ =ntere*t on t5e de)t& and to t5e 'rad(al

redem0tion o+ t5e 0rin,i0al T5e amo(nt o+ t5e !oin& 45i,5 i*

em0lo.ed in ,ir,(latin' t5e +(nd*& or& in ot5er 4ord*& in e++e,tin'

t5e di++erent alienation* 45i,5 t5e. (nder'o

$(t t5e +ollo4in' a00ear* to )e t5e tr(e and a,,(rate ie4 o+t5i* matter

l*t A* to t5e 0oint o+ t5e Ann(al Reen(e re6(i*ite +or

Pa.ment o+ intere*t and redem0tion o+ 0rin,i0al

A* a determinate 0ro0ortion 4ill tend to 0er*0i,(it. in t5e

rea*onin'& let it )e *(00o*ed t5at t5e ann(al reen(e to )e

a00lied& ,orre*0ondin' 4it5 t5e modi+i,ation o+ t5e 0er !ent

*to, o+ t5e United "tate*& i* in t5e ratio o+ ei'5t (0on t5e

5(ndred& t5at i* in t5e +ir*t in*tan,e *ix on A,,o(nt o+ intere*t&

and t4o on a,,o(nt o+ Prin,i0al

T5(* +ar it i* eident& t5at t5e !a0ital de*tro.ed to t5e ,a0ital

,reated& 4o(ld )ear no 'reater 0ro0ortion& t5an 8 to 1// T5ere

4o(ld )e 4it5dra4n +rom t5e total ma** o+ ot5er ,a0ital* a *(m

o+ ei'5t dollar* to )e 0aid to t5e 0()li, ,reditor: 45ile 5e 4o(ld

)e 0o**e**ed o+ a *(m o+ One H(ndred dollar*& read. to )e

a00lied to an. 0(r0o*e& to )e em)ared in {228} an. enter0ri*e&

45i,5 mi'5t a00ear to 5im eli'i)le Here t5en t5e!ugmentation

o+ !a0ital& or t5e ex,e** o+ t5at 45i,5 i* 0rod(,ed& )e.ond t5at

45i,5 i* de*tro.ed i* e6(al to Ninet. t4o dollar* To t5i*

,on,l(*ion& it ma. )e o)e,ted& t5at t5e *(m o+ Ei'5t dollar* i* to

)e 4it5dra4n ann(all.& (ntil t5e 45ole 5(ndred i* extin'(i*5ed&

and it ma. )e in+erred& t5at in 0ro,e** o+ time a ,a0ital 4ill )e

de*tro.ed e6(al to t5at 45i,5 i* at +ir*t ,reated

$(t it i* neert5ele** tr(e& t5at d(rin' t5e 45ole o+ t5e

interal& )et4een t5e ,reation o+ t5e !a0ital o+ 1// dollar*& and

it* red(,tion to a *(m not 'reater t5an t5at o+ t5e ann(al reen(e

a00ro0riated to it* redem0tion DD t5ere 4ill )e a 'reater a,tie

,a0ital in exi*ten,e t5an i+ no de)t 5ad )een !ontra,ted T5e *(m

dra4n +rom ot5er !a0ital* in any one year 4ill not ex,eed ei'5t

dollar*: )(t t5ere 4ill )e at everyinstant of time d(rin' t5e 45ole

0eriod& in 6(e*tion a *(m ,orre*0ondin' with so much of the

principal, a* remain* unredeemed, in t5e 5and* o+ [;/7] *ome

0er*on& or ot5er& em0lo.ed& or read. to )e em0lo.ed in *ome

0ro+ita)le (ndertain' T5ere 4ill t5ere+ore ,on*tantl. )e more

,a0ital& in ,a0a,it. to )e em0lo.ed& t5an ,a0ital taen +rom

em0lo.ment T5e ex,e** +or t5e +ir*t .ear 5a* )een *tated to )eNinet. t4o dollar*: it 4ill dimini*5 .earl.& )(t t5ere al4a.* 4ill

)e an ex,e**& (ntil t5e 0rin,i0al o+ t5e de)t i* )ro('5t to a leel

4it5 t5e redeemingannuity, t5at i*& in t5e ,a*e 45i,5 5a* )een

a**(med ). 4a. o+ exam0le& to eight dollars. T5e realit. o+ t5i*

ex,e** )e,ome* 0al0a)le& i+ it )e *(00o*ed& a* o+ten 5a00en*& t5at

t5e ,itiCen o+ a +orei'n !o(ntr. im0ort* into t5e United "tate*

1// dollar* +or t5e 0(r,5a*e o+ an e6(al *(m o+ 0()li, de)t Here

i* an a)*ol(te a('mentation o+ t5e ma** o+ !ir,(latin' !oin to

t5e extent o+ (997) 1// dollar* At t5e end o+ a .ear t5e +orei'ner

i* 0re*(med to dra4 )a, ei'5t dollar* on a,,o(nt o+ 5i*

Prin,i0al and =ntere*t& )(t 5e *till leae*& Ninet. t4o o+ 5i*

ori'inal #e0o*it in ,ir,(lation& a* 5e in lie manner leae* Ei'5t.

+o(r at t5e end o+ t5e *e,ond .ear& dra4in' )a, t5en al*o t5e

ann(it. o+ Ei'5t #ollar* And t5(* t5e Matter 0ro,eed*: T5e,a0ital le+t in ,ir,(lation dimini*5in' ea,5 .ear& and ,omin'

nearer to {229} t5e leel o+ t5e ann(it. dra4n)a, T5ere are

5o4eer *ome di++eren,e* in t5e (ltimate o0eration o+ t5e 0art o+

t5e de)t& 45i,5 i* 0(r,5a*ed ). +orei'ner*& and t5at 45i,5

remain* in t5e 5and* o+ ,itiCen* $(t t5e 'eneral e++e,t in ea,5

,a*e& t5o('5 in di++erent de'ree*& i* to add to t5e a,tie ,a0ital o+

t5e !o(ntr.

Hit5erto t5e rea*onin' 5a* 0ro,eeded on a ,on,e**ion o+ t5e

0o*ition& t5at t5ere i* a de*tr(,tion o+ *ome ot5er ,a0ital& to t5e

extent o+ t5e ann(it. a00ro0riated to t5e 0a.ment o+ t5e =ntere*t

and t5e redem0tion o+ t5e 0rin,i0al o+ t5e de)t )(t in t5i*& too

m(,5 5a* )een ,on,eded T5ere i* at mo*t a tem0orar. tran*+er o+

*ome ot5er ,a0ital& to t5e amo(nt o+ t5e Ann(it.& +rom t5o*e 45o

0a. to t5e !reditor 45o re,eie*: 45i,5 5e a'ain re*tore* to t5e

,ir,(lation to re*(me t5e o++i,e* o+ a ,a0ital T5i* 5e doe* eit5erimmediatel. ). em0lo.in' t5e mone. in *ome )ran,5 o+

=nd(*tr.& or mediatel. ). lendin' it to *ome ot5er 0er*on& 45o

doe* *o em0lo. it or ). *0endin' it on 5i* o4n maintenan,e =n

eit5er *(00o*ition t5ere i* no de*tr(,tion o+ ,a0ital& t5ere i*

not5in' more t5an a *(*0en*ion o+ it* motion +or a time: t5at i*&

45ile it i* 0a**in' +rom t5e 5and* o+ t5o*e 45o 0a. into t5e

P()li, ,o++er*& J t5en,e t5ro('5 t5e 0()li, !reditor into *ome

ot5er !5annel o+ ,ir,(lation B5en t5e 0a.ment* o+ intere*t are

0eriodi,al and 6(i, and made ). in*tr(mentalit. o+ $an* t5e

dier*ion or *(*0en*ion o+ ,a0ital ma. almo*t )e denominated

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momentar. Hen,e t5e ded(,tion on t5i* A,,o(nt i* +ar le**& t5an

it at +ir*t *i'5t a00ear* to )e

T5ere i* eidentl.& a* +ar a* re'ard* t5e ann(it. no de*tr(,tion

[;/8] nor tran*+er o+ an. ot5er !a0ital& t5an t5at 0ortion o+ t5e

in,ome o+ ea,5 indiid(al& 45i,5 'oe* to mae (0 t5e Ann(it.

T5e land 45i,5 +(rni*5e* t5e armer 4it5 t5e *(m 45i,5 5e i* to

,ontri)(te remain* t5e *ame: and t5e lie ma. )e o)*ered o+

ot5er !a0ital* =ndeed a* +ar a* t5e Tax& 45i,5 i* t5e o)e,t o+

,ontri)(tion >a* +re6(entl. 5a00en*& 45en it doe*? not o00re**&

). it* 4ei'5t ma. 5ae )een a Motie to greater exertion in an.

o,,(0ation: it ma. een *ere to en,rea*e t5e ,ontri)(tor.

!a0ital T5i* idea i* not 4it5o(t im0ortan,e in t5e 'eneral ie4

o+ t5e *()e,t {2;/}

=t remain* to *ee& 45at +(rt5er ded(,tion o('5t to )e made

+rom t5e ,a0ital 45i,5 i* ,reated& ). t5e exi*ten,e o+ t5e #e)t: on

a,,o(nt o+ t5e ,oin& 45i,5 i* em0lo.ed in it* ,ir,(lation T5i* i*

*(*,e0ti)le o+ m(,5 le** 0re,i*e ,al,(lation& t5an t5e Arti,le

45i,5 5a* )een (*t di*,(**ed =t i* im0o**i)le to *a. 45at

0ro0ortion o+ ,oin i* ne,e**ar. to ,arr. on t5e alienation* 45i,5

an. *0e,ie* o+ 0ro0ert. (*(all. (nder'oe* T5e 6(antit. indeed

arie* a,,ordin' to ,ir,(m*tan,e* $(t it (998) ma. *till 4it5o(t

5e*itation )e 0rono(n,ed& +rom t5e 6(i,ne** o+ t5e rotation& or

rat5er o+ t5e tran*ition*& t5at t5e medium o+ ,ir,(lation al4a.*

)ear* )(t a *mall 0ro0ortion to t5e amo(nt o+ t5e property,ir,(lated And it i* t5en,e *ati*+a,toril. ded(,i)le& t5at t5e ,oin

em0lo.ed in t5e Ne'o,iation* o+ t5e +(nd* and 45i,5 *ere* to

'ie t5em a,tiit.& a* ,a0ital& i* in,om0ara)l. le** t5an t5e *(m

o+ t5e de)t ne'otiated +or t5e 0(r0o*e* o+ )(*ine**

=t o('5t not& 5o4eer& to )e omitted& t5at t5e ne'otiation o+

t5e +(nd* )e,ome* it*el+ a di*tin,t )(*ine**: 45i,5 em0lo.*& and

). em0lo.in' diert* a 0ortion o+ t5e ,ir,(latin' ,oin +rom ot5er

0(r*(it* $(t main' d(e allo4an,e +or t5i* ,ir,(m*tan,e t5ere i*

no rea*on to ,on,l(de& t5at t5e e++e,t o+ t5e dier*ion o+ ,oin in

t5e 45ole o0eration )ear* an. ,on*idera)le 0ro0ortion to t5e

amo(nt o+ t5e !a0ital to 45i,5 it 'ie* a,tiit. T5e *(m o+ t5e

de)t in ,ir,(lation i* ,ontin(all. at t5e !ommand& o+ an. (*e+(l

enter0ri*e DD t5e ,oin it*el+ 45i,5 ,ir,(late* it& i* neer more t5an

momentaril. *(*0ended +rom it* ordinar. +(n,tion* =tex0erien,e* an in,e**ant and ra0id +l(x and re+l(x to and +rom

t5e !5annel* o+ ind(*tr. to t5o*e o+ *0e,(lation* in t5e +(nd*

T5ere are *tron' ,ir,(m*tan,e* in ,on+irmation o+ t5i* T5eor.

T5e +or,e o+ Monied !a0ital 45i,5 5a* )een di*0la.ed in reat

$ritain& and t5e 5ei'5t to 45i,5 eer. *0e,ie* o+ ind(*tr. 5a*

'ro4n (0 (nder it& de+. a *ol(tion +rom t5e 6(antit. o+ ,oin

45i,5 t5at in'dom 5a* eer 0o**e**ed A,,ordin'l. it 5a* )een

!oeal 4it5 it* +(ndin' *.*tem& t5e 0reailin' o0inion o+ t5e men

o+ )(*ine**& and o+ t5e 'eneralit. o+ t5e mo*t *a'a,io(* t5eori*t*

o+ t5at ,o(ntr.& t5at t5e o0eration o+ t5e 0()li, +(nd* {2;1} a*

,a0ital 5a* ,ontri)(ted to t5e e++e,t in [;/9] 6(e*tion Amon'

o(r*ele* a00earan,e* t5(* +ar +ao(r t5e *ame !on,l(*ion

=nd(*tr. in 'eneral *eem* to 5ae )een reanimated T5ere are

*.m0tom* indi,atin' an extention o+ o(r !ommer,e O(r

nai'ation 5a* ,ertainl. o+ late 5ad a !on*idera)le *0rin'& andt5ere a00ear* to )e in man. 0art* o+ t5e Union a ,ommand o+

,a0ital& 45i,5 till latel.& *in,e t5e reol(tion at lea*t& 4a*

(nno4n $(t it i* at t5e *ame time to )e a,no4led'ed& t5at

ot5er ,ir,(m*tan,e* 5ae ,on,(rred& >and in a 'reat de'ree? in

0rod(,in' t5e 0re*ent *tate o+ t5in'*& and t5at t5e a00earan,e* are

not .et *(++i,ientl. de,i*ie& to )e intirel. relied (0on

=n t5e 6(e*tion (nder di*,(**ion& it i* im0ortant to di*tin'(i*5

)et4een an absolute increase of )apital, or an accession of real

wealth, and an artificial increase of )apital, a* an en'ine o+

)(*ine**& or a* an in*tr(ment o+ ind(*tr. and !ommer,e =n t5e

+ir*t *en*e& a +(nded de)t 5a* no 0reten*ion* to )ein' deemed an

in,rea*e o+ !a0ital: in t5e la*t& it 5a* 0reten*ion* 45i,5 are not

ea*. to )e ,ontroerted O+ a *imilar nat(re i* )an ,redit and in

an in+erior de'ree& eer. *0e,ie* o+ 0riate ,redit

$(t t5o('5 a +(nded de)t i* not in t5e +ir*t in*tan,e& an

a)*ol(te in,rea*e o+ !a0ital& or an a('mentation o+ real 4ealt5:

.et ). *erin' a* a Ne4 0o4er in t5e o0eration o+ ind(*tr.& it 5a*

4it5in (999) ,ertain )o(nd* a tenden,. to in,rea*e t5e real 4ealt5

o+ a !omm(nit.& in lie manner a* mone. )orro4ed ). a t5ri+t.

+armer& to )e laid o(t in t5e im0roement o+ 5i* +arm ma.& in t5e

end& add to 5i* "to, o+ real ri,5e*

T5ere are re*0e,ta)le indiid(al*& 45o +rom a (*t aer*ion to

an a,,(m(lation o+ P()li, de)t& are (n4illin' to ,on,ede to it

an. ind o+ (tilit.& 45o ,an di*,ern no 'ood to alleiate t5e ill

4it5 45i,5 t5e. *(00o*e it 0re'nant: 45o ,annot )e 0er*(aded

t5at it o('5t in an. *en*e to )e ie4ed a* an in,rea*e o+ ,a0ital

le*t it *5o(ld )e in+erred& t5at t5e more de)t t5e more ,a0ital& t5e

'reater t5e )(rt5en* t5e 'reater t5e )le**in'* o+ t5e ,omm(nit.

$(t it intere*t* t5e 0()li, !o(n,il* to e*timate eer. o)e,t a*

it tr(l. i*: to a00re,iate 5o4 +ar t5e 'ood in an. mea*(re i*

,om0en*ated ). t5e ill: or t5e ill ). t5e 'ood&