Mr. NEWELL. Mr. Speaker, during all the years of the history of the country the subject of a tariff for revenue and protection purposes has agitated the public mind. With some the question of the revenue has been its primary and that of protection its 2ndary object; while with others protection has been looked upon as its primary and revenue its 2ndar consideration. By all parties, and nearly allwriters, however, the necessit of a tariff for revenue, which of course would incidentally protect native industry, has been acknowledged audadvocated. Nor is the U.S. an exception to all other civilized and even partially civilized nations as respects the use and necessity of a tariff for the purpose of revenue. The student of history can scarcely point to a country noted for the industry and prosperity of its people which does not owe a great portion of such industry and pros crity to the operation of a judicious system oi2 revenue raised from imports. Even in the cases of countries which at the present day stand forward as the special champions of free trade, their principal revenue is derived from tariffs heavi y discriminating against the products of other communities and nations. n no single instance, indeed, do we find absolute free trade to be the rule in anyone nation. On the contrary it is not even the exception to the revailing policy of civilization at the present ay, which seeks to build up native industry as the parent seeks to prepare the child, by a cquse of discipline, instruction, and practical application of these for the varied duties of every day life. As well might the arent sendforth his child ignorant an unskiled in the means of procuring a livelihood as for a young nation to strive to contend with an old one in those peculiar branches of industry which require a arge measure of skill and a vast accumulation of capital for their successful and profitable production in competition with the combined talent, industry, and wealth of old and settled communities. The advocates of free trade for et that national art requires the protectin and of the central Government as individua art does the fostering hand of the parent. In fact, in lcaving the confines of the mere savage condition of society, every step toward a higher and better civilization is made under the protecting mgis of government and law, while, as one phase after another of industrial progress is reached, the people are compelled to legislate to Cprotect the rights of every particular class an every specia industrial development; in other words, to provide that the weak are not 0ver powered by the strong, but that every individual capacity in man has a chance to bring forth fruits meet for the sustentation and preservation of the whole society. Thus the history of civilization has been simplythe history of a series of progressive steps which man has subdued nature to the various uses of society by the organization of labor under the protection of the central authority. In the feudal ages, the free cities were originally communities, under the lead of elected chiefs, organized for mutual protection against the free traders, the robbers, and banditti of those periods. In time their chiefs ceased to protect, and, indeed, became the oppressors of their peoile. Then the people appealed for protection to the central governments, the emperors. Thus feudalism was protection from those who preferred plunder to honest toil; and modern societ, under the lead of national unity, is simply the protection of the whole people, their art and industry, from the adverse competition of communities, in which, under exceptional conditions of civilization, the largest amount of labor consistent with continued existence is extracted from the impoverished and famishing many by the wealthy and pampered few. his as necessary, in modern times, that society should protect itself from the competition of those who grew rich by oppressing the poor, as in ancient times it was necessary to protect itself from those outside robbers and barbarians who preyed directly upon its weaker members. The socalled democratic idea, that neither from oppression of the rich or powerful at home nor from the competition of the some classes in our intercourse with foreign nations should society protect itself, would end in anarchy and civilWar, and finally in a return to the savage statein which the law of brute force and the condition of native stupidity would have their most perfect development. Free traders contend that is the best Government which governs the least.” But how, then, is it that as civilization gives place to barbarism, Governments become more complex, more varied in their duties, and more extended in the spheres of their action? Either our boasted civilization is a failure and barbarism preferable thereto, or the facts of history give the lie to the theo ries of free trade philosophers. Thus, although free trade and simple Governments, with limited central powers, maybe the normal conditions of a barbaric people, protection and complex Governments, witi extended central powers, are the normal conditions of civilized nations. Barbaric nations, composed oftribes acknowl edging but a limited allegiance to a central authority, are weak, both as regards internal order and external defense; while on the other hand, civilized nations, composed of communities acknowledging an extended allegiance to a central authority, are strong both for purposes of internal order and external defense. 1 considering the question of a tariff for revenuc or protection, then , we.should, at once dismiss from our minds the fallacy that because it tends to the centralization of power it is consequently opposed to the liberties of the people. This is merely the clap trap of the political demagogne, and, like the cry of State rights, so successfully used to lead the ignorant and unwary into rebellion against the central authority, should have no wei vht with the more intelligent and better educated citizen. Another free trade fallac is, that the protection extended by a tarion imports to the manufacturing portion of the community is at the expense of the agricultural classes, who, in return for their outlay in increased prices for manufirctured articles, receive no compen latin benefits avbat ever. I will not go into a disquisition upon this branch of the To do so would be butto travel over ground heretofore so often occupied by abler parties. I will say, however, in passing, that the superior markets for agricultural products created by home manufactures must always largely counterbalance the enhanced prices of manufactures, while the tendency of protection to foster such manufactures must ever be to cheapen their products. Capital and labor are always attracted to the most profitable sources of investment, thereby facilitating the tendency to greater cheapness of production. This is a the recognized and universal law which govjerns supply and demand, and is uniform under all conditions of human society. But admitting, for the sake of argument, that in order to foster and encourage manufactures in a merely agricultural condition of society, it is necessary to tax the general public in the outset, on account of certain conditions of labor or capital in older communities, I contend that such tax is a necessary condition of that stage of civilization which calls foritsimposition. Nations, like individuals, have their periods of child hood, youth, and manhood. It is necessary that the child should be instructed in the duties of the life upon which he is to enter, and that instruction must be at the expense of individuals or the State at large. Modern civilization recognizes the positive duty and necessity of State education. Now, a merely agricultural people are in a condition of imperfect devel, opment. They are in the childhood of national existence. Let them remain in such condition and they will never attain to that acme of prosperity or of civil or military distinction which falls to the lot of their more progressive neighbors. Indeed, in time they become the prey of their more powerful and prosperous rivals. If the State finds it absolutely necessary to tax itself for the education of its children in the theoretical duties of life, why should it not find it still more necessary to tax itself for the purposes of the practical application of those duties? It will be noticed that the time and expense incurred in preparing an individual for the duties of life are apparently out of all proportion to the benefits derived from those duties. So the excase of preparing a new people, a young an growing nation, for the actual strife of existence at pears out of all proportion to the results. lint such an expense must be cheerfully borne, or the nation will never take c its properrank among its sister States. As regards modern civilization, what strenvth has a merely agricultural community? It strength of brute force, as compared to modern science and skill, with all their improvements in arts and arms. The southern States of our Republic gloried in this strength: boasted of their agricultural wealth, declared cotton to be king, and defied the intelligence, skill, and science of the North. We all know the result and such result must always follow a contest between a purely agricultural people and a country yin which agriculture, manufactures, and commerce are blended in one harmonious whole, each dependent on all, and all combining to protect and preserve each. But as a child must force itself or be forced by its preceptors or parents to prepare itself for the duties of life, so must a merely agricultural people force themselves or be forced to prepare themselves for n more advanced condition of civilization, in which employments are more varied, and the resources of the nation more perfectly develo ed. Protection, then, like education, thong possibl an abnormal condition of national manho, is the normal condition of national adolescence. Since the formation of this Government the opposing ideas of 2 great men have been strugglin for the mastery, and that struggle, a parent y, culminated in the late rebellion or a time it was doubtful whether the followers of Thomas Jefferson or of Alexander Hamilton would control the Government, but the struggle at length, apparently, terminated in favor of the former. Now, Mr. Jefferson and his followers had a horror of progress in the direction of that ltas the civilization which was the rule as respects every leading tuition in christendom; while Mr. Hamilton and his followers saw that, even ifwc would not, the circumstances of our geographical position compelled us to follow in the we e ofolder countries or to rela se into mere barbarism. Mr. Jefferson would fain have preserved the U.S. in a mere agricultural condition of existence. He looked upon large cities as sores on the body politic and his followers regarded banks and manufacturing corporations as soulless monsters which were continually devouring the substance of the people. Mr. Hamilton, on the other hand, accepted the conditions of modern civilization as the normal state of society, and desired to prepare the people for participation in their by essings on for the mitigation of theirevils. Thus we find the Democracy taking for its mission the attempt to preserve society in its merely agricultural condition, in that oriod of happy childhood, to advance out of wtheh, in the view of that party, was but to encounter nothing but disappointment, distress, and finally universal decay and death. The mission of the Whigand Republican parties, on the other hand, is to prepare the nation for that higher condition and more varied walks of industry which are essential to advanced civilization. The extreme conservatism of the Democratic party was illustrated in its attempt to reserve even slavery itself, the most simple and child like form of human industry, and one only suited to the most primitive condition of merely agricultural existence. It is not to be wondere at, then that a party so conservative of a condition of society, which rendered manufacturing industry in its modern form totally impossible, would oppose all measures for the protection of such industry itself. It was not thus so much the principle of protection itself which the older Democratic lights opposed as the attempt to elevate manufactures in the U.S. to thatposition and standing in the community which would give them a controlling voice in the councils of the nation and a social status of the most towering proportions. No doubt the leaders of the De mocracy instinctively felt that as manufacturing industry prospered, a system founded on an entirely opposite principle must decay; that the wealth and progress of NewEngland would be a standing reproach to the poverty and stationary character of southern civilization. To this day your fanatical secessionist denounces the thrift of NewEngland, and your provident NewEnglander the s iftle ssness oft le South. They represent the extremes of our national civilization. I have said that a merely agricultural conn tryis butin its adolescence, and lacks the bone and sinew of manhood. To be sure it may give raw recruits in abundance to a.wealthier and more powerful neighbor on which it is dependent. In this way did Scotland in early times, and does Ireland to this day, supply England with men to fight its battles. In this way does India supply GreatBritain with the raw material by which its outlying dependencies are kept in subjection. In this way does Russia draw from her vast steppes those agricultural laborers who fill the ranks of her mnn ster battalions. But it is the manufacturing and commercial elements of those countries, and the aristocratic families in alliance with them, which direct all this brute force for good or evil. Even the sinews of war are directly contributed by manufactures and commerce. What could we have done in the late war for national existence if it had not been that the manufacturing and commercial interests of the country were on our side? An agricultural country cannot stand the taxation necessaryto an expensive and long continued war. Southern finances broke down at the very outset of the rebellion, while northern gathered strength with its progress. Because we were then an agricultural country, we could not sustain the vast accumulation of the old continental money and on the other hand, the manufacturing interest of GreatBritain enabled her to wage a war of a quarter of a century with Napoleon and to subsidize all Europe against him. Had she been a merely agricultural country he might have portioned out Europe as he pleased among the members of his family. But let me illustrate the wealth and power which manufactures give to a nation in modern times by reference to the sources of our own internalrevenue. These sources will show at once the superiority of a manufacturing, as rerds the sinews of war, over a merely agricu turalpeople. In round numbers, the receipts of internalrevenue for the fiscal year 1865were $211,000,000. Of this amount the NewEng land States, to other with the sea board States of NewYork, Pennsylvania, and NewJersey, contributed nearly $150,000,000, while all the western States and Territories, including those on the Pacific slope, contributed but about $49,000,000 and in the western States and Territories those portions devoted to manufactures and commerce contributed the great bulk of the revenue. Thus one district in Illinois contributed more than all the others and so.of other States. Here is food for earnest reffection. If manufactures can contribute such immense sums for purposes of the highest )Ub lic good the preservation of the life of the nation how much can the not contribute for purposes of private use an benefit? Besides contributing thus largely to the public necessity, manulacturin districts also absorb a much larger proortiona amount of the national cir calation, tins not only saving interest to the Government, but also, by increasing the have nues of industry, furnising employment to 1,000s of people. To illustrate, let me take the boot and shoe trade of Massachusetts. The capital invested in this trade last year was $10, 007, 474; the gross value of stock used $25, 040, 544; the value of boots and shoes manufactured $62, 915, 245; the number of male rsons employed in manufacture 42.626; of emales12, 534; total 65, 160. These persons manufactured during the year 7, 240, 021 pairs of boots and 24, 620, 660 pairsof shoes. But this boot and shoe trade is but one of those important branches of manufacture in NewEngland which have contributed so much to the wealth, prosperity, and happiness of her people. Some 26 of the leading cities and towns of NewEngland produce products valued at from one to 36 million dollars each, and give employment to a large number of persons, male and female. It is calculated that the consumption in the U.S. of iron, steel, copper, lead, zinc, woolen and cotton goods, leather, and glass is notless than $1,000,000,000 in value. In afew years this consumption will be increased one alf. Now suppose we were compelled to purchase all this vast amount of production from abroad, it is evident that it would exceed all the gold, cotton, and all other commodities an nually exported, besides leaving us in debt for over one halfthe amount. But we should also be compelled to pay reatly enhanced prices for the articles imported. as the demand would be materially increased, while GreatBritain and France would obtain complete control of our markets. Fortunately for us, however, the foreign imports for 1864 65did not much exceed $100,000,000 in value. For 1865 60 Iregret these imports will probably exceed double this amount; but should our manufacturing establishments be broken a, the effect upon the country would be fear ul to contemplate. some parts of the West agriculture could not be given away; wheat would decline to 25 cents per bushel; wages would fall in proportion; the fateof Ireland, Turkey, and Spain, which are reduced to mere depen dencies of the wealthy manufacturers of GreatBritain, would be ours. The public generally are not aware that, nearly 90%. of the manufactured goods consumed in this country are the product of the U.S. If they were, the freetraders cry, that protection is obtained at the exease of the consumer, would be robbed of ha fits terrors. The truth is the foreign import, like our foreign export of agricultural products into GreatBritain, is, In. products. at least, in periods of normal trade and commerce, but a tithe of the home consumption. It serves, however, to give the foreign manufacturer a lever by which he can operate inju rionsly on our home market: at one time low erirlg prices to a point entirely unremunerative to e native manufacturer, and then, when that manufacturer is compelled to succumb to the pressure, raising them to fi ires far higher than those from which theyh fallen. In this way the foreign manufacturer and capitalist extracts the loss he had been at in the effort to break down the home manufacturer and capi talist from the pocket of the home consumer. In a few months in this manner he may de stroy the labors of cars, throw 1,000s out of emploment, and cause a.depression of our home industry which will take years to recover from, a destruction of ca ital which it will take a decade to recreate, an a disorganization of labor which may never be restored. It is the internal trade, created by our manufactures, that builds up the country and unites every distant portion of it as with hooks of steel. Behold our vast network of railroads; see the amount of business performed by these roads; the immense number of persons to whom they give employment, from the arti ficer who builds the complicated engines and magnificent passenger cars to the laborer who constructs the track and keeps it in repair. Then glance at our river and lake steamboats, our canal barges, our coastwise steamers and ships of all kinds. What is our foreign trade, extensive as it is, and attracting as it does the admiration of the world, to all this traffic, involving an outlay of 1,000s of millions and giving employment to 100s of 1,000s of industrious and enterprisin people? But nearly all this great travel angdtra c is supported by our home manufactures. It is well nown that a vast amount of the immense ag ricultural products which center in Chicago, Milwaukee, Detroit, Buffalo, and other inland cities never reaches the sea board, but is manufactured or consumed at various points on the route. Thus NewEngland and Pennsylvania, and even NewYork, are better markets for the West than GreatBritain or France. In the case of these latter countries other nations enter into competition with our products shiped to them, which compels shippers to reulhte theiwiriccs accordingly. On the other and, the est has no cometitor in our home markets save Canada, and I trust the repeal of the late reciprocity treaty will do away with the injurious effects of that also. But even the expense of shipment from the West to the East eats up the profits of the agriculturist. Darin the past year corn has been consumed for fue in portions of Illinois and Iowa. Does not sue a fact prove the absolute necessity of a home market for agricultural products and its great benefit in increasing the purchasing power of a community? How immensely is the purchasing power of Pennsylvania increased y her manufacture of iron and her production of coal? How much poorer would she not be were she compelled to import all these vast amounts of the prime necessities of modern civilization? Would not her furnaces die out, her railroads become useless, her great cities decay, and the entire community tend toward barbarism? But what would take place in Pennsylvania in the event of the cessation of her iron and coal trade would only be a sample of what might be seen all over the U.S. were our manufafituring industry pros truted at the feet of foreign competition and foreign capital. We must preserve this great internal trade and industry, built up at the costof so much blood and treasure, from the competition of the cheap labor of Europe. Free trade presents to the American people but 2 eventualities. Either we must, under its influence, see our manufactures destroyed, or we must reduce the wages of labor to the European standard. In the 1st event we would place not only ourselves, but the foreign labor ers, at the mercy of the capitalists of EurOpe. In the 2nd, we would introduce into Amerl i icau social life that detion of labor which is little better than s avery itself. America would then cease to be the refuge of the oppressed of every clime, while the gulf, at all times, unfortunately even in the mest favored countries, separat in the rich from the poor, would be so widene that mutual hate and distrust would inflame mens minds and create materials which the political demagogue would be constantly fanning into the flame of revolution. In a country and political community in which universal suffrage is the acknowledged inherent right of the people, a state of things in which the interests of labor and capital. would be at variance precisely in the ratio that the numbers on one side and the amount on the other increased, and in which the masses had the means of destroying the existing order in their own hands, the political condition would be fearful to contemplate. On the other hand, the only hope for the continuance of republican institutions lies in such an adjustment of the rewards of industry that the laborer shall not only be properly compensated, but be left free to select that employment which is in consonance with the bent of is genius. Every man is born with an aptitude for some particular pursuit in life. It is this diversity which tends to that variety, as necessary in the econ omy of artificial or industrial life as it is in the economy of nature itself. All men cannot be farmers or physicians or lawyers. On the other hand, the more we are able to vary the industry of a country the greater the number of avenues to employment which we provide. In old, agricultural communities manufactures must be created for the employment of the surplus population or that population must vegetate in idleness, degenerate into vicious habits, or emigrate to other countries. This is but the history of the social life of every people. Now, the factory would not only keep the young men at home, but also create a market for the products of the old. Thus the community won (1 progress toward the goal of social existence, which is when the 3 great industrial interests of life agriculture, manufactures, and commerce are so blended and harmonized as to act and react upon one another, and thus become so mutually de endent that an injury done to one would be elt as an injury to the whole. But by this comparison between a merely agricultural country and one in which manufactures have been so developed as to add immensely to its wealth and prosperity, I do not mean to be understood as at all disparaging the relative importance of agriculture itself. On the contrary, I regard agriculture as the parent and basis of all other industries and arts, which repose upon it as the child upon the bosom of its mother, and draw their sustenance there from. The hardy tillers of the soil also not only sustain but help to save the country. NO other branch of industry, in any nation, can send so many or such stalwart men to the field of battle, while from the ranks of the farming classes the cities and towns are constantly re; cruited with fresh material to reilacc the worn out toilers in all professions and trades, in the arts as well as the sciences, in law as Well as medicine. It is only that form of society I de plore which rests content in an undeveloped national condition, entirely constituted of persons devoted to but one branch of industry, and that but very imperfectly organized. For be it nbted how the inventions of the mechanic and the information of the merchant tend to develop the resources by which the a iculturist adds to the wealth of a country. how far ahead is the farmer of the present day, in all that regards the application of science to his peculiar branch ofindustry, of the farmer of a halfor even quarter of a century ago. During the intervening period some of the most important agricultural implements have been invented and put to prac tical use. The reaping, threshing, and other machines now add the labor of 100s of 1,000s of men to the producing power of the country, while improved machinery of all kinds helps to lessen the toil and increase the productive forces of the husbandman and are not these inventions and new mechanical applicance s the products of the manufacturin in nstry of the country 2 and do they not add 1,000fold to the power and importance of agriculture; to its power as agreat national interest; to its importance as shedding luster upon those engaged in it and adding millions to the wealth of the people? Agriculture acts upon all other industrial interests; but these latter, in order to the perfection of national industry, should in turn react upon it. Agriculture is the sun around which manufactures and commerce revolve. But the sun must have iatsn;lanetsandsatellites, orits enialinfluences, all the blessings of its light and heat must be dissipated in the vacuum of an irresponsive space. In a true industrial system, however, agriculture gives sustenance to manufactures and commerce, while the latter in turn consume her products and increase her powers of production indefinitely. It will thus be seen that the interests of agriculture, manufactures, and commerce are so mutually blended as to be utterly inseparable, and that he who dispar ages one at the same time disrages all. I have thus, in this imperect manner, endeavored to set forth some of the benefits of manufactures to the people and the nation. Among other advantages, I find that manufactures create a home market, diversify the prod ucts ofindustry, increase the avenues of labor, develop internal and external trade and commerce, add to the amount of revenue, and form a basis for the absorption of a large volume of national circulation, thus internally and externally strengthening the national body, enabling it to preserve order and romote industry at home, and to make itsel feared as well its respected abroad. To foster and protect an interest fraught with such blessings to the people should be the aim of every patriot and fortunately the late war, so costly in blood and treasure to the country, has put it. in the power of the national Government, without injury to other interests, to place the menu factnres of the country on a basis of enduring prosperity. This can be done by so apportioning taxation that its principal burdens shall be made to fall upon the foreign manufacturer and on the realized wealth of the country. Thus of the immense revenue raised in GreatBritain, a country most clamorous for free trade as respects other nations, the proportions are as follows: CExucsitsoems. principle when it urged “Tho abolition or speedy reduction of all taxes which tend to check development and the retention of all those which, l, ikethe income tax. fall chiefly on realized wealth. Previous to the war our tariffs were of course imposed without reference to an internal taxation, which did not then exist. Since the war this system has been continued, notwithstanding that the principal burden of taxation now falls upon the manufacturing industry of the country. Thus the internalrevenue raised during the fiscal year of 1865 was $211, 129, 629; while the revenue derived from imports was but $84, 928, 260. For the present fiscal year the estimate of internalrevenue amounts to the large sum of $272,000,000. Now, it is evident that to expect the import duties to increase in like proportion at present tariff rates would be to expect that our home manufactures would be overwhelmed with foreign importations. For be it remembered, (and I desire to draw particular attention to this point) while the internal tax, principally borne by our manufacturers, as I have shown, has been added to the burdens of the manufacturer, the tariff on imports has not been proportionally increased. By this means the benefit derived from the tarifl" to the manufacturer is alto gether nullified by the internal tax on articles the manufacture of the country. To such a height has this grievance risen that there is scarcely a manufacturing interest in the country which has not its representatives at your doors praying for the recthetion or removal of the burdens under which it labors. To such an extent have these burdens reached thatl very much fear the result will be to totally crush out a great many branches of manufactures now in their infancy and struggling for existence. Give such branches relief and they will in n.few lyears be placed on a footing of prosperity an permanance which will bear a taxation that would now sweep them out of the field of their operations. In this connection I beg to read the following letter from a prominent iron manufacturin firm in my district. It is only a sample of 100s of the same description from manufacturers all over the country: Tans res, NewJeassv, February 21, 1866. Dan. Sin: Facts in regard to the state of business are worth a 1,000 theories, when you legislatein regard to the tarifl"and the internalrevenuesystem. You know how long we have been engaged in the manufacture of iron at Trenton and that we have i both capital and experience. During the last 6 months uflBtio, the priceof gold wasnearlyainiforin, so that no profit or lossoccurred from the fluctuations in the cost of importing foreign iron. The result of oursixmonthsoperationsat Trenton was a loss of $33, 70214, without charging any intereston capital, or any allowancefor our personal services. In other words there was an actual loss of ca ital to the iirnountofSJiIiJQl 14. urine the 6 months wepaid on the work turned out at Trenton internal taxes to the amount of 827, 17753. Therefore it is plain that all the internalrevenuederived from our businesswas taken out of capital, and was in etfect actually destructive of our means to carry on business. If no internal taxeshad been levied therewouldstill have been a lossof nearly seIv 10,000 dollars is obvious. theretorc, that we must shut up our works unless either the tziriff on foreign iron is increased, or the internalrevenue duties resoled, or both modifiedso that it is possible to conuct business Without loss. The losson our productamounted to about 6 dollars perton, which i will berilnir guide in adjusting the new duties. Either the foreign duty must be raised 6 dollars (perton or the internalrevenue duties reduced 6 ollnrs perten, or the 2 systems so adjustedthat the difference between the foreign duty and the internal duty shall be 6 dollars perton greaterthan it now is, or we must stop business. You are at liberty to usethislctter in any desirable way, and we ask that the facts inay he laid beforethe ComWays&Means in order that the exact truth from a responSible sourcemay be known. With great respect, we have the honor to be, very truly. your obedient servants. COOPER. HEWITT d: CO. Hon. W. A. NEWELL, M. (J., Washingtoncity, 1). C. In view of the statements in the above letter, for the truth of which I can vouch on the words of honorable men and respected citizens of my State, it is evident that ifthe Government fails to place the great manufacturing interests of the nation in such a position that they can move on and be self sustaining, attracting the capital and skill of the country and the world to them, it will fail to protect its own interests; it will fail to provide the means to meet the interest on the national debt and for the final redemption of that debt; it will fail, in fact, to preserve its own existence; while, on the other hand, it will enable the foreign manufacturer to draw out of the country the very capital needed at home for the organization of manufacturing industry, and for the realization of such a scale of profits on that indutry as shall be the future dependence of the government in the levying of the taxes for its support. Take the single arcle of steel, for instance, the manufacture o hich had been greatly increased under the tariff previous to the war, and during the war by the high rates of exchange operating as a protection from foreign compe tition. f an advalorem duty of 20% is levied upon steel the Treasur will receive $200,000 from the importation O every $1.000,000in value. The advocate of arevenue taritl“ would claim that this would be the easiest way to collect a revenue; and it would at 1st sight seem so, but that importation takes out of the country the whole $1,000,000 of capital never to return it. We can derive no future benefit from it, as we derived none from the operations which produced the steel. It is wholly lostto the countr. On the other hand, if the steel is producedyhere it gives employ. ment to 500 men, directly or indirectly. It secures steady work and good wages to miners of iron and coal, machinists, fire brick makers, builders, farmers, merchants, and in fact every branch of industry in the countr. including law, medicine, and divinity. The whole $1,000,000 that the steel thus costs is spread about, circulated broadeast, to support our own people instead of being sent abroad to sustain a rival country and this article of steel is one of the items which needs protection; for this reason I name it. But you cannot name on industry that is not benefited by the introduction of the manufacture of steel into the U.S. Yet foreign steel is now able to compete successfully with the home article, and our steel works are all, or nearly all, either losing money or idle for fear of loss. But some will say “if we cannot compete with GreatBritain we ought not to manufacture.” We could compete with her if we could bring our mechanics to work for the starvation wages paid in that country. But surely no man will have the hardihood to say that it is the interest of our Government to crush our people down to the level of those classes. The principle that wherever an article could be produced the cheapest, there it should be manufactured, and the world thence draw its supply, has its advocates; but such a principle tends to the centralization of capital in the hands of a few, who would not only have the power to compel their mechanics to work at the ir own prices, but, also, the world at large to pay such prices for their wares as the chose to set upon them. Many and many a time have we, as. well as other countries, been compelled to ay enormous prices to the manufacturers of real: Britain on account of our own short sightedness. Taking the article of steel again, if we do not produce it, the foreign manufacturers combine and charge us a big price for it. They are restrained from doing so now by the desire to break up the trade here. It is well known that the competition among ourselves brings down the price of manufactured staple articles to the lowest paying point. The fear is sometimes expressed that the moment a protective tariff is levied on steel, so as to shut out the foreign, the price would go up. So it would, for the moment. But even in that case the Government would only be assing funds from one citizen to another, and )there would be no national loss of capi tal. So soon as the home manufacture became thoroughly established, the competition would bring down prices to the lowest paying point, so that the consumer would soon get his supply as low as it could be profitably afforded and I am glad to see that many of the English manufacturers are recognizing the policy of the Government in this matter as the true one for the interests of the country, and are bringing their on ital to this country in order to carry on their usiness here, instead of trying any longer to draw out our capital in exchange for their products. This policy brings not only capita but skilled labor into the countr, which is what we so much need. At Harris urg, Pennsylvania, the celebrated Shef field (England) cutlers, Westenholm d. Co., are buildin an immense factory for the manufacture O various articles into which steel enters largely. It will give employment to a very large number of hands, for whom suit able homes are also being erected. One of the large thread manufacturers of England is also about to supply our market, by manufac turing the article ere, employing his own ital with which to carry on his operations. cap s not this much better than that we should send the cotton to England, at a large expense and risk, perhaps in foreign bottoms, and import the manufactured article in the same manner? There is now being erected in Essex county, in my State, a large establishment for the manufacture of watches. A village is also being built for its accommodation; a railroad station is to be established at the place, and thus value is at once added to the taxable property of the county, population to the country, income to the Government, and capital brought into the country to carry on the business. It can no longer be claimed that we are not old enough, that we cannot supply ourselves. We have, on the other hand, the elements of success in every branch of industry. With the propertariff encouragement, such establishments as those I have referred to will extend all over the country, and into every branch of manufacturing industry. No part of the nation will be the special receptacle of the increased wealth which will flow in upon us. such settlements will he made in the great West to meet its wants, and in the South to rebuild its waste places. The capital, the energy, the experience, and the really valuable industry of the 05d World will be transplanted here; the capital for more rapid increase; the energy to seek out new enterprises upon which to expend itself; experience to turn itself to account; and an industrious population to receive a better return for its labor. One of the reasons why the ca italists and manufacturers of Europe favored the breaking up of this nation and sympathized with the free traders and secessionists was that they saw we were finding out that protection was necessary to the development of our internal resources, and such development would soon bring a young but. active competition against them into the markets of the world. Now, seeing that the efforts to break up the Government is a failure they are turning their eyes to this country as a magnificent eld for their own means, industry, and enter rise. Let them come; there is room enoug for all of them. We are rich in mineral resources. Protect the industry that would develop them and we shall soon be strong enough to cope with the poorest paid labor in the world, on account of our improved processes and perfected machinery. All the metals and minerals are rodueed here in abundance except tin and nic cl. I But without a proper tnodification and increase of the tariff we shall have prostration, “ hard times, ” no internalrevenue to the Government, and most discouraging rospecls for new enterprises as well as established trades. With a propertariff comes activity in all branches; new enterprises go forward, followed by a development of all our great resources, prosperity ever where, and an abun dance to be taxed, with willingness to pay. National prosperity greater than before known will succeed ourpresent prostration; national strength will rise and show itself in what is now a national weakness the union of capital and labor. Do not be afraid to.tax a manufactured article because you may not be aware that it is made here in sufficient quantity to supply the market. Put on the tarili, and the foreign maker will come with all his capital, his implements, and his labor to manufacture here. A few weeks since the celebrated political economist, John Stuart Mill, in a speech in the British House of Commons, asserte that within the next hundred years England will cease to be the manufactory of the world. Her coal and iron have heretofore given her great advantages. But her coal is being mined with more and more difficulty, cost, and risk of human life. Some of the mines have reached a depth of 3000 feet, rendering ven tilation difficult. The London Times, in a recent editorial, strongly urges economy in the:se of fuel, thus indorsing the statement of Mr. Mill. The time will come when the vast manufactures which now give England her supremacy in the world will be transferred to the coal and iron fields of Pennsylvania and the West and Southwest. Shall we encourage our people to make an early advance toward the position nature has intended we shall occupy in the future, or shall we let slip the golden opportunity to seize hold of which, at the propermoment, is the sure ucrdon of success in the case of nations as we 1 as men? But not only have Mr. Mill and the London Times warned the British people of the danger which threatens her manufacturing and commercial supremacy on account of the respect uive failure of her supply of cool. but observe in the apers of today that Mr. Gladstone, Chancellor of the English Exchequer, in his speech on the budget delivered in the British Parliament on the 3d instant, reiterates the same views and points to the U.S. as a country rich in mineral resources and possessing boundless coal deposits. He asserts that we fulfill all the conditions in the future, the limitation or absence of which in England it is to be feared will one day compel labor and movable capital to emigrate to the U.S. This remarkable admission of one of the ablest of living statesmen should be accc ted as pointing out the future destiny of the U.S. as a great manufacturing country. I regret also to state that the effects of the heavy internal taxation are already operatin to the benefit of foreign manufacturers an increasing their importations in a most alarming manner, as will be seen from the following table of importations at NewYork since June 1, 1865 66, compared with the importations for the same time in 1864 65: FOREIGN GOODS IABKBTID AT NEWYORK. 1365 66 17cacle8. 64 65 10”. 11, 472, 458 Total, 8 months. $1$8.406.653 $92, 335. 5 If our experts were increasing in a corre sponding ratio there would be some comfort and satisfaction in the above exhibit. But this is not the case. The exports at NewYork, of all descriptions of produce, including specie, for 8 months of the years as above, have been: 1805 66. 1804 65. Julul to Feb. m. Julvl toFeb.53. Domesticproduce. 8142.651.804 $147, 535, 193 Foreign reexports 554 Total. $161.604.918 8189.09.059 Averageprice of gold. 143it cont. 232 is“! cent. This exhibits afalling of lofexports in 1865 66 and an increase of imports, which would indicate that the country is rushing headlong into debt, and at a rate excelling the speed of the most fashionable of modern spendthrifts. The ready sale of our bonds in Europe accelerates the pace at which we are involvmg ourselves, publicly and privately, with foreign manufoe turers and capitalists. The lowering of the price of gold also tends to encourage that oven importation which its former high price repressed. This renders an increase of import duties absolutely imperative. New goodsfrom abroad are sold ata great advance for currency, while our gold bearing bonds are made the me dium of remittance. These bonds will always hereafter be a medium of foreign investment as long as they are made to bear 6%. interest in specie. Now, however, on account of the difference in exchan e, they are obtained at a rate that readily yiel s 9 and ten or cent. The Comptroller of the Currency, in is Report for 1865, page 7, estimates the amount of our securities sent abroad in 5 years at $713,000,000, and says: “Our only resource to ny the balance against us hasbeen, and still is, thosaxieof our securitiesabroad." But if we add to this amount of our securities se utabroad as above stated by the Comp troller, the amount sent abroad in previous periods, estimated at at least $500,000,000, we have a debt owed by us in Europe amounting to Sl, 213,000,000. At the rate at which our imports are now going on, say nearly $350,000,000 yearly, an immense sum will be required to pay the balance of trade against us, swelled as it will be with the interest on our securities, which is payable in specie. Whereas, in order to keep the balance of trade in our favor, we ought to sell at least $100,000,000 worth yearly more than we buy, we are on the other hand buying more than that amount yearly than we sell. Now, it is as easy to see that such a state of things can no more last than to expect that a man will live if a physi cian takes more blood daily from him than his system will make in the ordinary process of digestion and manufacture of the ch 10 into venous and arterial circulation. Our uties on imlgorts should also be specific rather than qd ca rem, as is the case to a great extent in GreatBritain, Belgium, and other European countries. This would prevent the immense frauds on the revenue, now of daily occurrence, and which are winked at by customhouse offi eials. Belgium, arich and prosperous country, has 330 specific to 66 advalorem duties; while the U.S. has 2,439 advalorem to 479 specific duties. The advalorem duties collected in England from 1845 to 1862, were one and a quarter%. of the whole amount, while our customs are some 40%. advalorem, offering a premium on fraud such as is held out nowhere else in the world. 1 have seen it stated in the public journals that the frauds in the NewYork customhouse range from 12 to 25 million dollars yearly. Mr. Speaker, I have the honor to represent, in part, a State which for its territoria extent is not excelled by any other in the Union as a manufacturing State and I refer with especial pride, in this regard, to the districtrepresented by my distinguished friendand colleague, Mr. Waionr] which is only 2nd in the nion in the amount of revenue it returns for the support of the General Government. The amount of tax returned in that district last year was $2, 629, 033 82; in the 4th district of NewYork, $4, 457, 835; and in the 1st district of Pennsylvania, $2, 377, 988 82. Our constituents have consequently a deep interest in the question now before us. But. NewJersey is also great in agricultural as well as manufacturing resources. It is located between the great cities of the Atlantic seaboard; traversed with railroads; of varied and productive soil and unlimited natural resources for improvement. It is destined to be the garden of the vast populations of those cities. In its agricultural products it stands at the present time 1st in the list of States in proportion to the extent of its territory; in the value of its lands, according to the last census report, the 1st, notwithstanding its 100s o 1,000s of acres of salt marsh and unproductive forests. The products of the State will be immeasurably increased when her present system of internal improvements shall give wn m the more beneficents stem of general legislation, on event I trust estined soon to be consummated. My constituents are chiefly an agricultural people; as intelligent, prosperous, and honorable a constituency as ever intrusted a Representative with their interests on this floor. While they cultivate the soil they encourage and engage in manufactures; they foster colleges, se minaries, high, normal, and model schools, seats of science and learning. They contribute their full proportion to the support, advancement, and elevationof mankind; and I will say for the benefitof those who delight in deriding NewJersey, that my congressional district is equaled bno other agricultural district in this broad land in the amountand value of its agriculturalproductions, or in the value of the land composing it for agricultural purposes, in its natural advan tages for improvement or in its proximity to market. Extending, diagonally, nearly from NewYork to Philadelphia, it is bounded on the one side by an hundred miles of a sea board, with its immeasurable advantages for summer resort and abundant natural productions; and on the other by a broad river which bears its products to the sea. It is a district of revolutionary renown, around which cluster many 1 glorious memories of that patriot a e. There the Father of his Country sustaine his greatest trials, there it was that he achieved his greatest triumphs, on the memorable fields of Trenton, Princeton, and Monmouth; and there, too, repose the hallowed remains of men who sealed their devotion to liberty and right with their blood. It is agrandan noble district. I ask no greater honor than to be its lie pre sentative, and in only ambition is to faith ully represent it in a 1 its varied interests. But great as NewJersey is in proportion to her territoryas an agricultural, s e is destined 1 l to be yet greater as a manufacturing State. 1 The revenue paid on manufactures and pro: But the following table will more fully illus trate the value and importance of NewJersey 1ductions by NewJersey for the fiscal year endlas a manufacturing State. It is a comparative 1ing June 30. 1865, was exceeded only by that 1statement showing the district that returned of NewYork, Pennsylvania, Massachusetts, Ohio, and Illinois; and if we except distilled In proportion to population NewJersey paid on, manutactures a arger tax than either, except 1 Massachusetts, the tax percapila being as follows: Massachusetts, $12 64; NewJersey, i S6 50; NewYork, S6 14; Pennsylvania, “ $5 81; 01110, as 81; the largest revenue, and its amount, on several articles of manufacture in NewYork, New; spirits, by the 1st 4 only of those States. I Jersey, and Pennsylvania, also the whole collections on the articles and the tax percapita on each of those States, for the fise a year end in, June 30, 1865, preared by my friend, Mr. Witman, the admirabiia De duty ComrIntRev, to whom I am indebted for other statistical matter: The tax percapita is computed on the basis of the population of the 8th census, which for the aboveStateswas as follows: NewYork. 8.880.785. NewJersey. 672.035: Pennsylvania. 2.906.215. Some of the reasons which constitute NewJersey so important a manufacturing State are to be foun in the fact of its proximity to large cities where supplies for materials are abundant and good markets for sales of easy access. Then its railroad, canal, and river communications are unexcelled. Its water power is magnificent. It is also in near rox imity to coal mines. Within its borders iving as cheap, taxes are low, the health of its people unsur passed. As I have shown, it already ranks hig i as a manufacturing State. It has long been noted for its large production of glass, and for its iron of a very flexible, duc tile, and tensile quality, which are produced in the 1stand 2nd districts 5 for its steel of the finest manufacture; forits Zinc, includin paint from that article, which has become a mired the world over; for its enameled leather, and for man into the 1ndustry of the country. Of late, new branches of industry have sprung up in the State; chief among which is a mannfactory of white ware at Trenton, with a capital of other articles which enter largely? $1,000,000, and which employs over 1000 persons, although in operation but a few years. If this branch ofin ustry is but appropriately encouraged by protection, that part of the State will indeed become the Staffordshire of America. This great interest, I regret to say, now languishes for want of protection; and I respectfully call the attention of the committee oi? Ways&Means especially thereto. i l 1 In connection therewith I beg the Clerk will read the following letter from the secretary of the company. 1 do so because this branch of mann acture is a new one in the country. Immense quantities of crockery are now imported. It is a bulky and expensive article to transport, while it requires an unusually large proportion of mann labor in its production. thus giving employment. to a large population.