University of Virginia Library

TO CLARKSON CROLIUS.

I have received Sir the copy of the Address of
the Society of Tammany, with which I have been
politely favored.[8]

The want of economy in the use of imported articles
enters very justly into the explanation given of the

causes of the present general embarrassments. Were
every one to live within his income, or even the
savings of the prudent to exceed the deficits of the
extravagant, the balance in the foreign commerce
of the nation, could not be against it. The want
of a due economy has produced the unfavorable
turn which has been experienced. Hence the need
of specie to meet it, the call on the vaults of the
Banks, and the discontinuance of their discounts,
followed by their curtailments: Hence too the
failure of so many Banks, with a diminished confidence
in others: And hence finally a superabundance
of debts, without the means of paying them.

The Address seems very justly also to charge much
of the general evil by which many of the Banks
themselves have been overwhelmed, on the multiplicity
of these Institutions, and a diffusion of the
indiscriminate loans, of which they have been the
sources. It has been made a question whether
Banks, when restricted to spheres in which temporary
loans only are made to persons in active
business promising quick returns, do not as much
harm to imprudent as good to prudent borrowers.
But it can no longer be a doubt with any, that loan
offices, carrying to every man's door, and even
courting his acceptance of, the monied means of
gratifying his present wishes under a prospect or
hope of procrastinated repayments, must, of all
devices, be the one most fatal to a general frugality,
and the benefits resulting from it.

The effect of domestic manufactures in diminishing

imports, and as far as they are carried on by
hands attracted from abroad, or by hands otherwise
idle or less productively employed at home, without
a proportional diminution of the exports, merits
certainly a distinguished attention in marking out
an internal system of political Economy, and in
counteracting a tendency in our foreign Commerce
to leave a balance against us. The relief from this
source would be more effectual, but for the circumstance
that the articles which contribute much to
an excess of our imports over our exports, are articles,
some not likely soon, others perhaps not at all to be
produced within ourselves. There is moreover a
feature in the trade between this Country and most
others, which promotes not a little an unfavorable
result. Our Exports being chiefly articles for food,
for manufactures, or for a consumption easily surcharged,
the amount of them called for, never exceeds
what may be deemed real and definite wants. This
is not the case with our imports. Many of them,
some the most costly, are objects neither of necessity,
nor utility; but merely of fancy & fashion,
wants of a nature altogether indefinite. This relative
condition of the trading parties, altho' it may
give to the one furnishing the necessary & profitable
articles, a powerful advantage over the one making
its returns in superfluities, on extraordinary occasions
of an interrupted intercourse; yet, in the
ordinary and free course of commerce, the advantage
lies on the other side; and it will be the greater in
proportion to the lengthened credits on which the
articles gratifying extravagant propensities are supplied.
Such an inequality must in a certain degree
controul itself. It wd. be compleatly redressed by
a change in the public preferences & habits, such as
is inculcated in the address.

In not regarding domestic manufactures as of
themselves, an adequate cure for all our embarrassments,
it is by no means intended to detract from
their just importance, or from the policy of legislative
protection for them.

However true it may be in general that the industrious
pursuits of individuals, ought to be regulated
by their own sagacity & interest, there are
practical exceptions to the Theory, which sufficiently
speak for themselves. The Theory itself indeed
requires a similarity of circumstances, and an equal
freedom of interchange among commercial nations,
which have never existed. All are agreed also that
there are certain articles so indispensable that no
provident nation would depend for a supply of
them on any other nation. But besides these, there
may be many valuable branches of manufactures
which if once established, would support themselves,
and even add to the list of exported commodities;
but which without public patronage would either
not be undertaken or come to a premature downfall.
The difficulty of introducing manufactures, especially
of a complicated character & costly outfit,
and above all, in a market preoccupied by powerful
rivals, must readily be conceived. They appear
accordingly to have required, for their introduction

into the Countries where they are now seen in
their greatest extent & prosperity, either the liberal
support of the Government, or the aid of
exiled or emigrant manufacturers, or both of these
advantages.

In determining the degree of encouragement which
can be afforded to domestic manufactures, it is
evident that, among other considerations, a fair
comparison ought to be made of what might be
saved by supplies at home during foreign wars, to say
nothing of our own, with the expence of supporting
manufactures in times of peace against foreign
competitions in our market. The price of domestic
fabrics, tho' dearer than foreign, in times of peace,
might be so much cheaper in times of war, as to be
cheaper also than the medium price of the foreign
taking the two periods together. Yet the Amn.
manufacturer if unprotected during the periods of
peace wd. necessarily be undermined by the foreign;
and he could not be expected to resume his undertaking
at the return of war, knowing the uncertainty
of its continuance; and foreseeing his certain ruin
at the end of it. Estimates on these points cannot
be made with much precision, but they ought not
on that acet. to be overlooked; and in making them
a strong leaning ought to be indulged towards the
policy of securing to the nation independent resources
within itself.

If I have extended these remarks beyond the
proper limits I must find my apology in the nature
of the subject; & in the tenor of your letter, for Which

I pray you to accept my acknowledgets., with my
respects & good wishes.