[Twenty Years of Congress, Vol. 1 (of 2) by James Gillespie Blaine]@TWC D-Link book
Twenty Years of Congress, Vol. 1 (of 2)

CHAPTER IX
17/70

He perceived its logical conclusions and frankly accepted them.

He considered "the monopoly of the domestic market to its own manufacturers as the reigning policy of manufacturing nations," and declared that "a similar policy on the part of the United States in every proper instance was dictated by the principles of distributive justice, certainly by the duty of endeavoring to secure to their own citizens a reciprocity of advantages." He avowed his belief that "the internal competition which takes place, soon does away with every thing like monopoly, and by degrees reduces the price of the article to the _minimum_ of a reasonable profit on the capital employed.

This accords with the reason of the thing and with experience." He contended that "a reduction has in several instances immediately succeeded the establishment of domestic manufacture." But even if this result should not follow, he maintained that "in a national view a temporary enhancement of price must always be well compensated by a permanent reduction of it." The doctrine of protection, even with the enlarged experience of subsequent years, has never been more succinctly or more felicitously stated.
Objections to the enforcement of the "protective" principle founded on a lack of constitutional power were summarily dismissed by Mr.
Hamilton as "having no good foundation." He had been a member of the convention that formed the Constitution, and had given attention beyond any other member to the clauses relating to the collection and appropriation of revenue.

He said the "power to raise money" as embodied in the Constitution "is plenary and indefinite," and "the objects for which it may be appropriated are no less comprehensive than the payment of the public debts, the providing for the common defense and the _general welfare_." He gives the widest scope to the phrase "general welfare," and declares that "it is of necessity left to the discretion of the national Legislature to pronounce upon the objects which concern the general welfare, and for which under that description an appropriation of money is requisite and proper." Mr.Hamilton elaborates his argument on this head with consummate power, and declares that "the only qualification" to the power of appropriation under the phrase "general welfare" is that the purpose for which the money is applied shall "be _general_, and not _local_, its operation extending in fact throughout the Union, and not being confined to a particular spot." The limitations and hypercritical objections to the powers conferred by the Constitution, both in the raising and appropriating of money, originated in large part after the authors of that great charter had passed away, and have been uniformly stimulated by class interests which were not developed when the organic law was enacted.
Some details of Mr.Hamilton's report are especially interesting in view of the subsequent development of manufacturing enterprises.
"Iron works" he represents as "greatly increasing in the United States," and so great is the demand that "iron furnished before the Revolution at an average of sixty-four dollars per ton" was then sold at "eighty." Nails and spikes, made in large part by boys, needed further "protection," as 1,800,000 pounds had been imported the previous year.

Iron was wholly made by "charcoal," but there were several mines of "fossil coal" already "worked in Virginia," and "a copious supply of it would be of great value to the iron industry." Respecting "cotton" Mr.Hamilton attached far more consideration to its manufacture than to its culture.


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