Essay No. CIII.

The Cotton manufactures. Remarks upon a communication from a manufacturer under the signature of Statist. Imports and exports of Cotton goods, plain and coloured. Fallacy of the doctrine that foreign articles are driven out of the American market by the superior quality of the domestic goods, when, in fact, they are shut out by prohibition.

IN our paper of to-day will be found a third communication from our correspondent Statist, upon the subject of the Cotton manufacture. He still insists upon it that we can manufacture cotton fabrics in this country cheaper than the British, and asserts that, within the last year or two, a considerable extension has been given to this branch of business, by the production of a species of coarse fabric, which is fast driving out of use the coarse linens of the continent of Europe. The candour and frankness with which this writer gives his views of the manufacture in question, entitle him to a fair hearing. In regard to his first proposition, that is, that coarse cotton goods can be manufactured cheaper in this country than in England, he is either wrong or he is right. If he is wrong, then it follows that the American nation is taxed to support the cotton manufacture, without any more reason and authority than if it were taxed for the purpose of raising a fund to pay a higher interest to manufacturing capitalists than others can get for their money, or to pay higher wages to manufacturing operatives than other industrious classes can get by being employed in commerce or agriculture. If he is right, then it follows that there is no necessity for the protecting duty, and, consequently, it ought to be abolished.

But it will perhaps be said, that, although we can manufacture cheaper than the British, yet that our manufacturers will not sell as cheap as the British—that the foreign goods being shut out by the high duty, leaves the home market a monopoly, and as the manufacturers lost money by their operations for two years, they are now making up these losses. That cotton goods have greatly risen within a year, is a well known fact. Upon some articles a rise has taken place of from 20 to 50 per cent., and if the former prices paid the cost of production, the present prices must yield enormous profits. Supposing the quantity of cotton manufactured in the U. States to be what the tariff party say it is, 200,000 bales of 300lbs., that is 60,000,000 pounds, and supposing this to be manufactured into four yards of cloth to a pound, which would be 240,000,000 of yards, a rise upon that quantity of only three cents a yard, would be a clear tax upon the nation of $7,200,000. And for whose benefit would this tax be? Not for that of the operatives who are employed in the cotton manufacture, for they get no more wages in that business than people engaged in other branches of industry. For whose benefit, then? Why, for that of the wealthy stockholders in the manufacturing corporations of New England, and the individual rich capitalists in the other states who own the factories. It is, in fact, literally to increase the wealth of the wealthy, and thus to raise up, by artificial means, an aristocracy to lord it over the country, and to control its politics, as if wealth acquired by legitimate means was not capable of accomplishing it fast enough to suit our republican taste. It is, indeed, the most extraordinary infatuation that ever seized upon a people, which actually urges them on to court and solicit increased taxation, for the sake of promoting the interests of rich corporations and individuals, at a moment, too, when all Europe is shaking their burdens from their backs.

As to the position of our correspondent, that our coarse cottons are driving out of use the coarse linens of the continent of Europe, the advantages or disadvantages which may result therefrom to the country, must depend upon whether they are driven out by high duties on the foreign article, or by the cheapness and superiority of the domestic article. It is a very easy process to drive an article out of use by prohibiting its importation, and such driving out is by no means an indication of a national gain. Suppose a duty were imposed upon mahogany of a dollar a foot, for the purpose of putting money into the pockets of the owners of the forests where curled maple is produced. The effect would no doubt be, that domestic woods would take the place of the foreign, and then we should hear some wiseacre say, that maple, walnut, and cherry were now manufactured to such perfection as to drive out of use the mahogany of St. Domingo and Honduras. This is the sort of false reasoning that has produced so much delusion throughout the country. Congress enacts a law prohibiting the importation of certain foreign articles, and then, because they cease to make their appearance, we are foolish enough to fancy that they are shut out by the superior cheapness of our own commodities. If, in regard to the particular commodity referred to by Statist, the article be really “cheaper and better” than linen, why then the course we would recommend would be, to reduce the duty on the linen, and leave the consumer free to take his choice. In a country like ours, every man, rich or poor, ought to be left in a state of perfect liberty to buy what he pleases. The government has no right to place any obstructions in his way, except what are necessary to enable it to collect from him a fair contribution for its economical support. All beyond this is wrong and oppression. If, therefore, a Southern planter says he likes for the clothing of his negroes linen or woollen in preference to cotton, and is willing to pay a higher price for it, why, let him do as he pleases. He has every motive to consult his own true interest and that of the slave, in choosing the cheapest and best commodity, and we would a thousand times rather leave it to his judgment than to that of any body else. Depend upon it, that if cotton cloth, for the clothing of the negroes at the South, is “cheaper and better” than German dowlas, as Statist affirms it to be, it will soon be found out, and introduced into general use.

In this communication of our correspondent, he asserts what is altogether new to us. It is, that the finer cottons have been manufactured in this country to a greater profit than the coarse ones. He states, that the duty has been high enough to protect the finer as well as the coarse ones, and he repeats, that even the former can be manufactured cheaper here than in England. This assertion is undoubtedly at variance with all the received notions on this subject, and is an additional argument in favour of taking off the duty. But we honestly confess our inability to accede to this proposition, without some further light on this subject.

The imports into this country, and exports from it, of white cottons, during the last five years, of which official reports have been published, were as follows:

which is more than two millions of dollars per annum paid for foreign cotton goods, for consumption, which paid a duty of not less than 25 per centum ad valorem, and from that up to 100, besides at least 15 per centum expenses of importation. Now, if the foreign manufacturer, after paying all this enormous duty, and these expenses, got his own money for his goods—which is to be presumed, or he would not have gone on with his trade—what an exhorbitant profit our domestic manufacturers must have made upon the quantity they sold at the same prices! At least one-third or one-half must have been clear profit—and our readers will owe a heavy debt of gratitude to Statist if he can make out this case, which is far more favourable to our side of the question than we had ever supposed.

The profits, however, of the plain cotton manufacture, it seems, are equalled by those of the calico-printing branch, the progress of which, in this country, is described in very glowing colours. Our correspondent supposes, that thirty-five to forty millions of yards are printed in the United States, and that twenty to twenty-five millions of yards are imported. The imports and exports of printed and coloured goods, during the last five years, stood thus:

the value of foreign printed and coloured cotton goods consumed in the country during the last five years, which is equal, upon an average, to $4,672,902 per annum.

These goods, like the white ones, paid a duty of 25 to 100 per centum, besides 15 per centum expenses of importation—which, taken together, at an average of 60 per cent., increased their cost to the consumer $2,803,741. Now if the domestic manufacturers sold nearly double the quantity that was imported, they must have made a profit of nearly $5,600,000—that is, a sum nearly double the amount of duties and charges upon the quantity imported; and if this sum be added to the duties actually paid, it will show a tax upon the nation, for the support of the calico manufacture, of upwards of eight millions of dollars. Whatever Statist may think on the subject, our humble opinion is, that this is paying too dear for the whistle. As to the idea that the calico manufacture is any more deserving of governmental patronage than any other branch of business, we think that these statements entirely refute it. It never can be the policy of any government to encourage the domestic production, at the expense of the consumers, of any article to the value of twelve millions of dollars, which requires a tax to sustain it equal to eight millions of dollars.