European wars, and the continuance of habits after the causes which produced them have ceased to exist, may also be enumerated. eral of those obstacles have, however, been removed or lessened. The cheapness of provisions had always, to a certain extent, counterbalanced the high price of manual labor; and this is now, in many important branches, nearly superseded by the introduction of machinery; a great American capital has been acquired during the last twenty years; and the injurious violations of the neutral commerce of the United States, by forcing industry and capital into other channels, have broken inveterate habits, and given a general impulse, to which must be ascribed the great increase of manufactures during the two last years.

B. Leading Manufactures in 1840 1

In 1840 the leading manufactures were of cottons, woolens and machinery. The table on the opposite page shows the extent of the manufactures of these commodities for the various states.

C. View of Manufactures in 1860 2

By 1860 the manufactures of the United States employed over 1,250,000 persons, and turned out products to the value of approximately two billion dollars. According to the census of that year the condition of the leading manufacturing industries was as follows:

PRODUCTS OF INDUSTRY

The returns of MANUFACTURES exhibit a most gratifying increase, and present at the same time an imposing view of the magnitude to which this branch of the national industry has attained within the last decennium.

The total value of domestic manufactures, (including fisheries and the products of the mines,) according to the Census of 1850, was $1,019,106,616. The product of the same branches for the year ending June 1, 1860, as already ascertained in part and carefully estimated for the remainder, will reach an aggregate value of nineteen hundred millions of dollars (1,900,000,000). This result exhibits an increase of more than eighty-six (86) per centum in ten years! The growth of this branch of American labor appears, therefore, to have been in much greater ratio than that of the population. Its increase has been 123 per cent. greater than that even of the white population 1 Adapted from the Sixth Census, 1840.

2 Preliminary Report on the Eighth Census, 1860. (Washington, 1862), 59-69.

by which it was principally produced. Assuming the total value of manufactures in 1860 to have been as already stated, the product per capita was in the proportion of sixty dollars and sixty-one hundredths ($60 61) for every man, woman, and child in the Union. If to this amount were added the very large aggregate of mechanical productions below the annual value of five hundred dollars of which no official cognizance is taken the result would be one of startling magnitude.

The production of the immense aggregate above stated gave employment to about 1,100,000 men and 285,000 women, or one million and three hundred and eighty-five thousand persons. Each of these, on an average, maintained two and a half other individuals, making the whole number of persons supported by manufactures four millions eight hundred and forty-seven thousand and five hundred, (4,847,500,) or nearly one-sixth of the whole population. This was exclusive of the number engaged in the production of many of the raw materials, and of food for the manufacturers; in the distribution of their products, such as merchants, clerks, draymen, mariners, the employes of railroads, expresses, and steamboats; of capitalists, various artistic and professional classes, as well as carpenters, bricklayers, painters, and the members of other mechanical trades not classed as manufacturers. It is safe to assume, then, that one-third of the whole population is supported, directly and indirectly, by manufacturing industry.

It is a gratifying fact, shown by the official statistics, that while our older communities have greatly extended their manufactures, the younger and more purely agricultural States, and even the newest Territories, have also made rapid progress. Nor has this department of American industry been cultivated at the expense of any other. There is much reason to believe that it affords the safest guarantee of the permanency and success of every other branch. Evidence bearing upon this point is found in the manufacture of agricultural machines and implements, which is one of the branches that shows the largest increase in the period under review. There is little doubt that the province of manufactures and invention in this case has been rather to create than to follow the demand. The promptness of Americans to adopt labor-saving appliances, and the vast areas devoted to grain and other staples in the United States, have developed the mechanics of agriculture to an extent and perfection elsewhere unequalled. The adoption of machinery to the extent now common in farm and plantation labor furnishes the best

assurance that the development of agriculture or manufactures to their utmost, can never again justify the old charge of antagonism between them in regard to labor, or injuriously affect either by materially modifying its cost or supply.

II. PROGRESS OF COTTON MANUFACTURES, 1806-1860

A. Cotton Manufactures in Massachusetts, 18061

Already by 1816 the cotton manufactures of the country were important. In that year Congress imposed a tariff on imported cotton goods, which had the effect of stimulating the industry and finally of making it the leading manufacture in the country. This remarkable growth may be seen by comparing its value of output and capital employed at different times. A traveler made the following comment on the industry early in the century:

About four miles from Providence, we passed Patucket river, and entered into the state of Massachusetts. Here there are very handsome falls, and a little town called Patucket, in which there is a thriving manufactory of cotton yarn and goods. The spinning works are said to be on the most approved principle, and there are several looms going by machinery.

We were informed that the cotton trade had been introduced here by a gentleman from England, a pupil of Arkwright, who had been very successful; that other people were following his example, and that this branch was likely to increase to a great extent in this district. I doubted the power of the people here to become competitors with the manufacturers of England; but I learned that they confine themselves pretty much to coarse goods, and articles of the first necessity; and on turning the whole information, relative to the subject, in my mind, I found that they had such a number of circumstances in their favour, as were sufficient to balance, if not to overcome, the disadvantages. The principal disadvantage is the high wages which must be paid to the workmen; and it is supposed that the people have a predeliction for agriculture, which has a tendency to prevent them from settling at sedentary employments. This last circumstance is the popular opinion in Britain, and I was impressed with its reality myself; but after looking round me in this country, I rather think that it is more specious than solid; for I find there is no want of masons, carpenters, smiths, tanners, shoemakers, hatters, taylors, and other mechanics, none of which are agricultural employments. All these and other branches are organ

1 Travels Through the United States of America. By John Melish (Philadelphia and London, 1818), 73-5.

ized and practised with persevering industry, because the profits resulting from them are equal to those resulting from agriculture; and other branches will be subject to the same rule. In every community there are a great number of the members who are better adapted for labour in the house than in the field; and the force of this remark is peculiarly applicable to the cotton trade, in which a large portion of the labour is performed by machinery, and the remainder principally by women and children. But all labour is better paid for in America than in Britain. The proportion is probably two to one; and if the cotton trade will afford this advance to the labourers, it will bear a competition with similar manufacturers of Britain, and prosper - not else.

The most striking circumstance in favour of the cotton manufactures is the cheapness of the raw material, which is the produce of the United States. They manufacture here principally upland cotton, and the price, including carriage to this place, is about 20 cents per pound; being about 12 cents lower than they can possibly have it in Britain. The next circumstance is the heavy charges to which British manufactured goods are subject before they come into the American market. These may be reckoned at least equal to 45 per cent.: namely, carriage, insurance, and shipping charges, 5 per cent; American duties, 16 per cent.; importer's profit, 10 per cent; American merchant's profit and contingencies, 14 per

cent.

It is my opinion, upon the whole, that the cotton manufacture will increase in America; and that it holds out a very good inducement for men of capital to embark in it.

B. State of Cotton Manufactures in 18161

In 1816 a house committee investigated the manufacture of cotton goods and showed the development of the industry as follows:

While commerce flourished, the trade which had been carried on with the continent of Europe, with the East Indies, and with the colonies of Spain and France, enriched our enterprising merchants, the benefits of which were sensibly felt by the agriculturists, whose wealth and industry were increased and extended. When external commerce was suspended, the capitalists throughout the Union be came solicitous to give activity to their capital. A portion of it, it is believed, was directed to the improvement of agriculture, and

1 House Committee Report on Domestic Manufactures. Annals of Congress, 1815-16 (Washington, 1854), 961.