With regard to scarcity of hands, the fact itself must be applied with RO fmall qualification to certain parts of the United States. There are large districts which may be confidered as pretty fully peopled, and which, notwithstanding a continual drain for distant fettlements, are thickly interspersed with flourishing and increafing towns. If these diftricts have not already reached the point at which the fcarcity of hands ceases, they are not remote from it, and are approaching faft towards it and having, perhaps, fewer attractions to agriculture than fome other parts of the union, they exhibit a proportionably stronger tendency towards other kinds of industry. In these diftricts may be dif cerned no inconfiderable maturity for manufacturing establishments.

But there are circumftances, which have been already noticed with another view, that materially diminish every where the effect of a fcarcity of hands. These circumftances are-the great use which can be made of women and children; on which point a very pregnant and inftructive fact has been mentioned; the vaft extenfion given by late improvements to the employment of machines, which, fubftituting the agency of fire and water, has prodigiously leffened the neceffity for manual labour; the employment of perfons ordinarily engaged in other occu pations, during the feafons, or hours of leifure; which, besides giving occafion to the exertion of a greater quantity of labour by the fame number of perfons, and thereby increafing the general stock of labour, as has been elsewhere remarked, may also be taken into the calculation, as a refource for obviating the scarcity of hands-laftly, the attraction of foreign emigrants. Whoever infpects with a careful eye the compofition of their towns, will be made fenfible to what an extent this refource may be relied upon. These exhibit a large proportion of ingenious and valuable workmen, in different arts and trades, who, by expatriating from Europe, have improved their own condition, and added to the industry and wealth of the United States. It is a natural inference from the experience they have already had, that in proportion as the United States fhall present the countenance of a serious profecution of manufactures, in proportion as foreign artists shall be made fenfible that the ftate of things there affords a moral certainty of employment and encouragement, competent numbers of European workmen will transplant themselves, effectually to enfure the fuccefs of the defign. How indeed can it otherwife happen, confidering the various and powerful inducements which the fituation of America offers, addreffing themfelves to fo many ftrong paffions and feelings, to fo many general and particular interests?

S s a

It may be affirmed, therefore, in refpect to hands for carrying on ma nufactures, that they will in a great measure trade upon a foreign stock; referving their own for the cultivation of their lands and the manning of their ships, as far as character and circumftances fhall incline. It is not unworthy of remark, that the objection to the fuccefs of manufac tures, deduced from the scarcity of hands, is alike applicable to trade and navigation, and yet thefe are perceived to flourish, without any fenfible impediment from that caufe.

As to the dearness of labour, another of the obftacles alledged, this has relation principally to two circumftances; one, that which has been juft difcuffed, the scarcity of hands; the other, the greatnefs of profits."

As far as it is a confequence of the fcarcity of hands, it is mitigated by all the confiderations which have been adduced as leffening that deficiency. It is certain too, that the difparity in this refpect between fome of the most manufacturing parts of Europe and a large proportion of the United States, is not nearly fo great as is commonly imagined. It is alfo much less in regard to artificers and manufacturers than in regard to country labourers; and while a careful comparison fhews that there is, in this particular, much exaggeration, it is alfo evident, that the effect of the degree of difparity which does truly exift, is diminished in proportion to the use which can be made of machinery.

To illuftrate this last idea-Let it be fuppofed, that the difference of price, in two countries, of a given quantity of manual labour requifite to the fabrication of a given article is as ten, and that some MECHANIC POWER is introduced into both countries, which performing half the neceffary labour, leaves only half to be done by hand, it is evident, that the difference in the cost of the fabrication of the article in question, in the two countries, as far as it is connected with the price of labour, will be reduced from ten to five, in confequence of the introduction of that

POWER.

This circumftance is worthy of the most particular attention. It diminishes immenfely one of the objections, moft ftrenuously urged, against the fuccefs of manufactures in the United States.

For the United States to procure all fuch machines as are known in any part of Europe can only require a proper provifion and due pains. The knowledge of feveral of the most important of them they already poffefs. The preparation of them there is in most cafes practicable on nearly equal terms. As far as they depend on water, fome fuperiority of advantages may be claimed, from the uncommon variety and greater cheapness of fituations adapted to mill feats, with which different parts of the United States abound.

So far as the dearness of labour may be a confequence of the greatness of profits in any branch of business, it is no obftacle to its fuccefs. The undertaker can afford to pay the price.

There are grounds to conclude, that undertakers of manufactures in America, can at this time afford to pay higher wages to the workmen they employ than are paid to fimilar workmen in Europe. The price of foreign fabrics in the markets of the United States, which will for a long time regulate the prices of the domeftic ones, may be confidered as compounded of the following ingredients :-The firft coft of materials, including the taxes, if any, which are paid upon them where they are made; the expence of grounds, buildings, machinery, and tools; the wages of the perfons employed in the manufactory; the profits on the capital' or ftock employed; the commiffions of agents to purchase them where they are made; the expence of transportation to the United States, including infurance and other incidental charges; the taxes or duties, if any, and fees of office which are paid on their exportation; the taxes or duties, and fees of office which are paid on their importation,

As to the first of thefe items, the coft of materials, the advantage, upon the whole, is at present on the fide of the United States, and the dif ference in their favour muft increase, in proportion as a certain and extenfive domeftic demand shall induce the proprietors of land to devote more of their attention to the production of those materials. It ought not to escape obfervation, in a comparison on this point, that fome of the principal manufacturing countries of Europe are much more dependent on foreign fupply for the materials of their manufactures, than the United States, who are capable of fupplying themfelves with a greater abundance, as well as a greater variety, of the requifite materials. a

As to the fecond item, the expence of grounds, buildings, machinery, and tools, an equality at least may be affumed; fince advantages in fome particulars will counterbalance temporary difadvantages in others.

As to the third item, or the article of wages, the comparison certainly turne against the United States; though, as before obferved, not in fo great a degree as is commonly fuppofed.

The fourth item is alike applicable to the foreign and to the domeftic manufacture. It is indeed more properly a refult than a particular to be compared,

But with refpect to all the remaining items, they are alone applicable to the foreign manufacture, and, in the ftricteft fenfe, extraordinaries; conftituting a fum of extra charge on the foreign fabric, which cannot be estimated at less than from 15 to 30 per cent. on the cost of it at the manufactory.

The fum of extra charge may confidently be regarded as more than à

counter,

counterpoife for the real difference in the price of labour, and is a fatisfactory proof that manufactures may profper in defiance of it in the United States.

To the general allegation, connected with the circumftances of scarcity of hands and the dearness of labour, that extenfive manufactures can 'only grow out of a redundant or full population, it will be fufficient to answer generally, that the fact has been otherwife. That the ftuation alledged to be an effential condition of fuccefs, has not been that of feve ral nations, at periods when they had already attained to maturity in a variety of manufactures.

The fuppofed want of capital for the profecution of manufactures in the United States is the most indefinite of the objections which are ufually opposed to it.

It is very difficult to pronounce any thing precife concerning the real extent of the monied capital of a country, and still more concerning the proportion which it bears to the objects that invite the employment of capital. It is not lefs difficult to pronounce, how far the effect of any given money, as capital, or, in other words, as a medium for circulating the industry and property of a nation, may be increased by the very cir cumftance of the additional motion which is given to it by new objects of employment. That effect, like the momentum of defcending bodies, may not improperly be reprefented, as in a compound ratio to mafs and velocity. It feems pretty certain, that a given fum of money, in a fituation in which the quick impulfes of commercial activity are little felt, will appear inadequate to the circulation of as great a quantity of industry and property as in one in which their full influence is experienced.

It is not obvious why the fame objection might not as well be made to external commerce as to manufactures, fince it is manifest that the im menfe tracts of land, occupied and unoccupied, are capable of giving employment to more capital that is actually beftowed upon them, Ir IS CERTAIN THAT THE UNITED STATES OFFER A VAST FIELD FOR THE ADVANTAGEOUS EMPLOYMENT OF CAPITAL, but it does, not follow that there will not be found, in one way or another, a fufficient fund for the fuccefsful profecution of any species of industry which is likely to prove truly beneficial.

The following confiderations are of a nature to remove all inquietude on the fcore of want of capital.

The introduction of banks, as has been fhewn on another occafion, has a powerful tendency to extend the active capital of a country. Experience of the utility of these inftitutions is multiplying them in the United States. It is probable that they will be established wherever they can exift with advantage; and wherever they can be fupported, if ad

ministered

miniftered with prudence, they will add new energies to all pecuniary operations.

The aid of foreign capital may fafely, and with confiderable latitude, be taken into calculation. Its inftrumentality has been long experienced in their external commerce; and it has begun to be felt in various other modes. Not only their funds, but their agriculture and other internal improvements have been animated by it. It has already, in a few inftances, extended even to their manufactures.

It is a well known fact, that there are parts of Europe, which have more capital than profitable domeftic objects of employment. Hence, among other proofs, the large loans continually furnished to foreign ftates. And it is equally certain, that the capital of other parts may find more profitable employment in the United States, than at home. And notwithstanding there are weighty inducements to prefer the employment of capital at home, even at lefs profit, to an investment of it abroad, though with greater gain, yet these inducements are over-ruled, either by a deficiency of employment, or by a very material difference in profit. Both these causes operate to produce a transfer of foreign capital to the United States. It is certain, that various objects in America hold out advantages, which are with difficulty to be equalled elfewhere; and under the increasingly favourable impreffions, which are entertained of its government, the attractions will become more and more ftrong. Thefe impreffions will prove a rich mine of profperity to the country, if they are confirmed and strengthened by the progrefs of their affairs. And to fecure this advantage, little more is neceffary, than to foster industry, and cultivate order and tranquility at home and abroad.

It is not impoffible, that there may be perfons difpofed to look with a jealous eye on the introduction of foreign capital, as if it were an inftrument to deprive their own citizens of the profits of their industry: but perhaps there never could be a more unreasonable jealousy. Instead of being viewed as a rival, it ought to be confidered as a most valuable auxiliary; conducing to put in motion a greater quantity of productive labor, and a greater portion of useful enterprife, than could exist without it. It is at least evident, that in a country fituated like the United States, with an infinite fand of refources, yet to be unfolded, every farthing of foreign capital, which is laid out in internal ameliorations, and in industrious eftablishments of a permanent nature, is a precious acquifition.

And whatever be the objects which originally attract foreign capital; when once introduced, it may be directed towards any purpose of beneficial

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