CHAPTER VI.-GREAT BRITAIN THE ONLY NATION THAT IS PREPARED FOR

FREE TRADE, AND the United States the lasT THAT CAN AFFORD IT. PAGE 100

The Importance of Position, in all Competition, illustrated by familiar Examples.—Adam

Smith's Illustration.-The Tribe or Nation that is ahead in Manufactures, can keep ahead,

by Free Trade.-The first Lessons on Protection to Great Britain.-The Way of her

Beginning, and its Results.-It was by this System that she was able to triumph over

Napoleon.--Great Britain was Poor when she began her Protective System.-Behold

the Consequences.-Great Britain always consults the Parties interested in Protection,

and complies with their Wishes-Not so the United States.-A remarkable Example of

turning Witnesses out of Court.-British Manufacturers, from the Strength of their Posi-

tion, have consented to dispense with Protection.-M'Gregor's Evidence and Advice to

the British Government.-M.Culloch's Confession.-Action of the States of Europe, after

the Overthrow of Napoleon, in Favor of Free Trade.-Their Repentance.-Repent-

ance of Russia.-Manifesto of Count Nesselrode.-The Zoll Verein Treaty.-Napoleon's

Policy. The Policy of the European Continental Nations against Great Britain, defen-

sive. The greater Cost of Money and Labor in the United States an insuperable Bar

to Free Trade.-The Weak, not the Strong, require Protection.-British Free Trade,

not Free Trade.-British Differential Duties retained.-Effect of Commercial Treaties.

-The Whole Truth in few Words.

CHAPTER VII.-FREEDOM CONSISTS IN THE ENJOYMENT OF COMMERCIAL

RIGHTS, AND IN THE INDEPENDENT CONTROL OF COMMERCIAL VALUES FAIRLY

ACQUIRED...

.....

PAGE 114

The Novelty and Importance of this Proposition, a Reason for giving it an early Place in

this Work-What is Meant by it.-Definition of Commercial Rights and Values.-

Liberty not synonymous with Freedom.—Rights as distinguished from Liberty-Free-

dom, not an Abstraction, but a Reality.-Is a definable Substance. The Objects of

Despotism of every kind, even Spiritual, are Commercial Values.-All Religious Privi-

leges are Secured and Fortified by Commercial Values.-Freedom requires, that all

Taxes should be Voluntary, by a Representative Voice.-Otherwise they are an Ex-

tortion, and not Freedom.-" Voting Supplies."-The British Government more imme-

diately under the Control of Popular Freedom than that of the United States.-The

Mexican War an Example.-Many things are called Freedom which are only its Acci-

dents and Results-A reasonable Man will be contented with Freedom as here de-

fined.--A Man's Commercial Rights includes his Chances in the Future.-The Blood

of Martyrs shed on Account of Commercial Values.-The Test of the Principle con-
tended for.

CHAPTER VIII.—WHAT CAUSED THE AMERICAN REVOLUTION.—HISTORY OF

THE PROTECTIVE POLICY IN The United States.....
.. PAGE 126

A Restatement of the Object of this Work, and of the great Error of the Economists.-The

Theme of this Chapter important as a Starting Point in the General Argument. The

Instinctive Policy of a Parent State toward Remote Dependencies, fatal to the End in

View.-Such was the Policy of Great Britain toward her North American Colonies.--A

Review of that Policy.-The Doctrines of Joshua Gee.-Their Influence on Parliament

and the Board of Trade.-Acts of Opposition and Wrong Provoked the Revolution.-

Declaration of Independence.-Commercial Values, as the Fruits of Labor, the Occasion

of the Contest.-The Position of the Free-Trade Economists as to the Elements of this

Controversy. They were forced to justify Wrong.-The Wrong a Commercial one.-

The Aim of the Revolution was to break down the Old, and to establish a New System

of Public Economy, that is, a Protective System.-The Struggle was based on the Prin-

ciple of Mine and Thine, as it determines Commercial Rights.-A Protective System of

Society the great Object in this Country from the First.-The great Movement from

Europe to America was and is for this.-The Confederation a Rope of Sand.-A Pro-

tective System the great Object of the Federal Constitution.-One of the first Acts of

the new Congress was to establish a Protective System.-Documentary Evidence for

Fifty Years, that Protection was the Uniform Policy of the Country.-The Cause of

Apostacy from this Ancient Faith.

CHAPTER IX. -THE DESTINY OF AMERICAN FREEDOM NOT YET ACHIEV

ED........

.................... PAGE 142

The general Desire for Freedom, before and after the Discovery and Settlement of Amer-

ica.-American Independence an Epoch of Freedom.—“ An American System" means

much.-It is a "Commercial System."—" Political" the Shadow, "Commercial" the

Substance. The Responsibility of a Nation that has Freedom in Trust for Posterity and

for Mankind.-Faith as a Power in Man for the Attainment of Freedom.-The Advo-

cates of Freedom are in general practically Right, though often theoretically Wrong.-

Freedom yet in its Cradle.-The vacillating Policy of the Country in regard to the

Means of Freedom.-Seventy Years of the Era of American Freedom gone, and yet

Freedom was to be Defined.-The People have much to Learn on this Subject-What

Great Britain and Europe Desire.-The Jeopardy of American Freedom.-Free Trade

would throw it away—would Sell It.

....

CHAPTER X.- THE DIFFERENT STATES OF SOCIETY IN Europe and AMERICA

REQUIRE DIFFERENT SYSTEMS OF PUBLIC ECONOMY....

PAGE 151

The three fundamental Elements of European Economists.-Adam Smith's and Ricardo's

Statement of them.-These Elements do not exist in the United States as a Rule, but

only as Exceptions.-The Ancient System of European Society gives Character to

the Modern. The economical Position of the Laborer there, the same as that of the Ox

or the Slave. This Position assigned to Labor by European Economists, as proved by

their own Statements.-The Theory of Malthus justifies this Position.-This Doctrine

pervades the European, and has been transferred into American Systems of Economy.

-The prevalent Principle of Land Tenures in Europe fundamentally different from

that which prevails in the United States.-" Rent" the lord of all in Europe.-The Prin-

ciple of Serfdom and Villanage, under other names, still prevails in that quarter of the

World.-Labor doomed there.-American Society fundamentally different.-The same

System of Public Economy can not apply to each.-Reform in America, slow, but sure.—

Can only be effected by Public Economy.-Free-Trade Economy hostile to Popular

Rights.

CHAPTER XI.-EDUCATION AS AN Element of PUBLIC ECONOMY IN THE UNI-

TED STATES....

....

.PAGE 169

Education a Thing of Commercial Value.-The American People the Original Statesmen

of the Country.-The American Republic an Experiment for the World.-Difference

between the European and American Theory of Society.-Knowledge makes the Dis-

tinction between Freemen and Slaves-Character of the First Settlers of this Country.-

They were Men of high Culture.-General Education made the Basis of their New

State of Society.-Education the Power that achieved American Independence.—It is

the most Important of all the Elements of an American System of Public Economy.-

A System of Universal Education may not at first Produce Examples of the highest

Culture. The American System gives Equal Chances to All-System of American

Schools and Colleges.-A Protective System of Public Economy indispensable to the

American System of Education.-Education and Virtue Concomitants in a Nation.-

Comparative Condition of European and American Population.-Physical and Moral

Education makes the Difference.

CHAPTER XII.—Protection Not Restriction, BUT EMANCIPATION..PAGE 180

What is meant by a Restrictive System.—It is a Misnomer as applied to Protection.-

Free Traders and Protectionists in the United States are both after the same thing.-

The true Relation between Capital and Labor.-The most perfect State of Society-

Capital is Labor in Repose.-Protection of Capital is the Protection of Labor.-An

American Protective System a Rescue from a Foreign Restrictive System.-American

Labor can not be free, without Protection.-The Protection of one American Interest

can never injure another American Interest, but benefits all.--Examples and Proofs.-

The Position of American Capital and Labor in Relation to Foreign Capital and Labor.

Consideration of the Maxim that a Nation must buy in Order to sell.-The Prosperous

and Rich buy and trade most.-Protection makes us rich; the want of it makes us poor.

-A Rule for one Nation may be bad for another.-Why does Great Britain preach

Free Trade?-Adam Smith began right, and ended wrong.—He leaped to his Conclu-

sion from False Premises.

CHAPTER XIII.-MONEY

.....

.....

PAGE 189

Barter, its Nature —Origin of the Name, “Precious Metals."-How Gold and Silver came

to be used as Money-Gold not used as Money in all Parts of the World.-Relative

Proportions of the Precious Metals employed as Money and for other Purposes.-Foun-

dation of the Value of Gold and Silver, when used as Money.-Turgot. Say, M.Culloch,

and others, on this Point-The Foundation of the Value of Money lies in the Demand

of the Precious Metals for other Uses.-It is a Foundation in Nature, not the Result of

Convention-Defiuition and Functions of Money.

CHAPTER XIV.-MONEY......

.....PAGE 203

The Distinction between Money as a Subject and as the Instrument of Trade.-Review

of the Doctrine of Adam Smith and others on the Relative Position of Money and of the

Commodities given for it-Adam Smith versus Adam Smith.-Price the Attribute of

Commodities, not of the Money given for them.-Smith and Others on this Point-Error

and Confusion of their Doctrine.-Weight the Measure of Money, and not the Commod

ities for which it is exchanged.- Professor Twiss' " View of the Progress of Political

Economy, since the 16th Century."-Mr. Twiss meets the Point, and puts all at Stake.

-Examination of his Position.

CHAPTER XV.-MONEY AS THE "TOOLS OF TRADE".....

..... PAGE 223

An Illustration of this Truth.-The Condition of a Nation, after selling its "Tools of Trade,"

the Same as that of a Mechanic who does the same Thing.-Montesquieu's Doctrine on

this Point-The Emperor of Russia investing in French Stocks-Money but an incon-

siderable Fraction of a Nation's Wealth.-To answer its Purposes, Money should be to

a Nation as a fixed Capital-It is "Tools."--Half a Set of "Tools" not as good as a per-

fect Set-Money the necessary Means of a Nation's Wealth-The Amount required by

a Nation, depends on its Resources and Capabilities.--The Charge of a Miser Spirit on

Protectionists considered.-Bad Economy to hoard up Money-The Commercial Revul.

sions in the United States always owing to the Want of Money as " Tools of Trade."-

A Protective System necessary to keep on hand "Tools" enough.-There has never yet

been Money enough in the United States for the Business of the People.-Money makes

the Mare go. To have Money enough, as " Tools of Trade," is Evidence of Private

and Public Economy.-Ignorance the Parent of Free Trade in the United States.-The

Precious Metals are to Society equivalent to a Law of Nature-Mr. Jacobs on the Uses

of the Precious Metals.-The Quantity of the Precious Metals required for the Trade of

the United States.-The Commercial Troubles of this Country owing to unfortunate and

fitful Changes in the Policy of the Government.

CHAPTER XVI.-PAPER-MONEY AND BANKING....

.............. PAGE 240

The Principle of Credit.—The United States built up by Credit.-Gold and Silver a Credit

Currency. Is Bank-paper Money?-The Invention of Paper-Money a great Advance

in Civilization.-Facts to illustrate its Economy and Necessity-It greatly augments the

Facilities, Scope, and Powers of Commerce.-Facts and Authorities to this Point-

Banking the Instrument of Paper-Money-The American System of Banking-Prin-

ciples and Benefits of Banking.-Adam Smith's Doctrine that Paper-Money banishes

Specie, not applicable to the United States.-The Precious Metals the only sound Basis

of Banking-The visionary and unsettled Opinions of European, particularly British

Economists, as to the Basis of Banking.- Sir Robert Peel right at last in his Bill of 1844.

-A Government Bank necessarily in a false Position.-The Subtreasury a Government

Bank-Treasury-Notes are Post-Notes.-All the Functions of the Treasury, by making

it a Government Bank, merged in that Bank-The Effects, Danger, and Power of this

Institution-It subverts the Banking System of the Country.-The Instincts and Propen-

sity of the Federal Government for Banking, as illustrated in the Subtreasury.

CHAPTER XVII.-THE GAIN OF INDIVIDUALS NOT ALWAYS THE Gain of the

COMMUNITY...

.......................................PAGE 260

Views of Free Trade Economists on this Point-M'Culloch's View of Capital as formed

out of Profits.-M'Culloch's Hobby.-The Doctrine of Equivalents in Trade considered.

-Equivalents in Kind.-Money, as "Tools of Trade," not an Equivalent in Kind -How

this affects the Doctrine of Free Trade.-Difference, economically, between Importations

for Consumption of Value, and Importations to be improved in Value or otherwise used

for Increase of Wealth.-The Values added to the raw Material by manufacturing.-

Every Commercial Transaction independent.—Answer to some Points made by M. Say.

CHAPTER XVIII.-LABOR.

....

.....PAGE 274

Definition. Who are Laborers.-Labor is Capital.-The Effect of not recognising this

Fact in Public Economy.-The False Position awarded to Labor by the Economists.-

The Position which they themselves occupy False.-Labor Capital vested in Man bim-

self, and estimated by his Life and Powers.-Labor-Capital reproduces itself indefinitely.

-It is the Parent of all other Capital-It is more Profitable than any other.-It is the

Gift of God, and Inalienable.—The Machinery of Society is its Product, which reacts to

give it Value.-Labor-Capital may be under Restraint, in Certain Circumstances.-La-

bor the Source of all Wealth, by creating all Commercial Values.-Labor bound to share

in the Burdens of Society and entitled to Protection.-Labor in its True Position,

defines Human Rights.-The Perversion and Abuse of those Rights, owing to its False

Position in Public Economy.-The Results of the American Revolution put it in the right

Place-Labor Man's Honor, not Disgrace.-It is the great Political Element.-Labor

Discovered and made America.-American Independence, Labor's Jubilee.—Its Conse-

quences." Rent," as practised in Europe, created Classes.-Labor considered as the

Agent of Power, and as an Independent Agent.-The former Slavery, the latter Free-

dom. The First the State of Labor in Europe, the second its Condition in the United

States. The Malthusian Theory, as it justified European Economists and European

Society, in enslaving Labor.-The Theory a Blasphemy-This Problem solved in

America.-Origin of the term Landlord, with its Lesson-Labor, to be Free, must have

an Alternative in another Chance besides the Wages offered.-Europe does not afford

that Chance. America does.-Political Chances of American Citizens.-Causes and Ef-

fects of the Difference in the Value of Labor and Money. in Europe and America.-

The Power and Aims of Governments which oppress Labor.-The Interests of Civi

lization vested in Labor.-The Rights of Labor, Political-The Rights of Labor the

Strife of the Age.-The Pivot on which it turns.

CHAPTER XIX.-THE DIFFERENCE BETWEEN THE COST OF MONEY AND LABOR

IN EUROPE AND THEIR COST IN THE UNITED STATES, AS IT AFFECTS PUBLIC

ECONOMY FOR THE UNITED STATES.....

......PAGE 295

The comparative Prices of Labor in Europe and the United States-These Prices deter-

mine the Value of Money and other Capital in these two Quarters-Money worth

more than other Capital.-Its Value in any Country, and at any given Time, determined

by the Rate of Interest.-Some Account of the Rates of Interest in different Countries,

and at different Times.-The Average Interest of Money in the United States, as com-

pared with the Average in Europe.-Difference in the joint Cost of Money and Labor

in these two Quarters-Different States of Society the Causes of this Difference.-The

Greatness of the Power acquired in Europe, by the Wrongs to Labor.--The practical

Importance, in forming a System of Public Economy for the United States, of consid-

ering the Difference in the Cost of Money and Labor in Europe and America.—A

Commercial Principle lies at the Bottom of this Difference, and controls Results.

CHAPTER XX.-THE CLAIMS OF AMERICAN LABOR FOR PROTECTION.PAGE 302

Difference in the social Position of Labor in Europe and America.-It is a Commercial

Principle, that requires the Protection of American Labor, and therefore imperative.--

The Rule of graduating Protection.-How Foreign Policies bear on the vulnerable

Points of the United States.-British Free Trade a Protective Policy.-The Abatement

of Duties in Great Britain requires Increase, rather than Diminution, in the United States,

because it is made for Protection.-Importance of Skill in Public Economy, to Amer-

ican Statesmen.-The Advantages of Free Labor over Slave Labor.-European Labor

in a like Position with Slave Labor-The best Rule for Protection is, that they who

ask for it, should have it.-Adam Smith's Argument for Free Trade, is One for Protec-

tion. He concedes and begs the Question.-Adam Smith and Daniel Webster, as to the

Effect of increased Investments of Capital in producing Establishments, on Labor, and

on the Profits of Capital.-The United States can never dispense with Protection, so long

as Money and Labor here cost more than elsewhere.-The Cry of "Monopoly."-Dem-

agogues.

CHAPTER XXI.-BALANCE OF TRADE

...... PAGE 322

The Balance of Trade a well-known Principle in common Life.-The Efforts made to

mystify the Subject.-Adam Smith and his School admit the Principle unawares.-The

only Difficulty is an imperfect View of the Facts that belong to the Question.-The

Difficulty in England not found in the United States, and is now removed there.-Prac-

tical Men always Right on this Subject-Instance the London Times.-Adam Smith's

"Wherewithal."-The Free-Trade Economists fail to distinguish between Money as a

Subject and as the Instrument of Trade, in all their Reasonings on this Question-Adam

Smith lets the Cat out of the Bag, by an Hypothesis.-The Key of this Hypothesis.-Ad-

am Smith makes Loss Evidence of Gain.-Joshua Gee's Position and Reasoning as a

British Economist.-He the British Oracle.-His Policy for America.-The Coinage of

a Nation Evidence of its Profitable or Unprofitable Trade.-M. Say's Reasoning on the

Balance of Trade.-Its Absurdity.-Adam Smith the original Author of this Fallacy.—

How One rides a Hobby.-A Citizen may be enriched by the same Act that subtracts

from the Wealth of the Nation.-So of a Class of Citizens.

CHAPTER XXII.—THE MUTUAL DEPENDENCE OF AGRICULTURE, MANUFAC-

TURES, AND COMMERCE....

..PAGE 342

These three are a natural Family of Interests in the United States -Agriculture alone

subjects a Nation to Dependence.-Adam Smith on this Point.-Adam Smith and his

School have furnished the best Refutation of their own Errors.-An Argument on the

indissoluble Connexion between these three great Interests.-The "Mercantile and

Agricultural Systems," as defined by Adam Smith and others, considered.-There is no

Foundation for this Array of these two Systems, as opposed to each other, and made so

much of by some of the Economists.-The Importing Merchants favor Free Trade.-

Smith's and Gee's Description of this Class of Traders.-The Independent Position of

every Commercial Transaction.

CHAPTER XXIII.-PROTECTIVE DUTIES NOT TAXES............... PAGE 351

The Gain of Assumptions, without Proof, to one Party, and the Loss to the other by con-

ceding them. The whole Controversy turns on the Proposition of this Chapter.-Popu.

lar Instincts on this Subject.-Duties not the Cause or Measure of a Change in Prices.--

The vast and comprehensive Spheres of Influence which bear on this Question.--How

they all tend to prove that Protective Duties are not Taxes.-The Causes Abroad and

at Home, which produce the Effect.-A Protective System adequate for all Purposes

of Public Revenue in the United States.-The Commercial Position of the United States

will, for an indefinite Period, require Protection-An Array of Facts to establish the

Proposition of this Chapter, with Comments.-Reasons of the Facts.-The great Misfor-

tune of conceding, in the Technical Use of Language, that Protective Duties are Taxes.

CHAPTER XXIV.-AN AMERICAN PROTECTIVE SYSTEM A RESCUE FROM FOR-

EIGN TAXATION...

.............. PAGE 381

The Method and Rule of this Argument, as laid down by a Public Document and Joshua

Gee-A Showing, from the Principles of this Rule, and by Public Documents, of the

Foreign Taxation which the People of the United States have been and are still sub-

jected to.-Adam Smith's and M-Culloch's Evidence on this Point.-Taxes of Foreign

Nations, of whom we purchase, enter into the Prices of their Products to us.-The Prin-

ciples of the Tariff of 1846, as they bear on this Point-Returns of British Commerce

as compared with those of the United States.-The Aggregate of Foreign Taxes paid

by the United States since 1791.-A Protective System the sure and only Way of Rescue

from Foreign Taxation.

.... ....

CHAPTER XXV.-GAINS OF PROTECTION AND LOSSES BY FREE TRADE..PAGE 397

The everlasting Objection.-The Charm of Hypothesis, as compared with the Inductive

Mode of Reasoning-How things look at a Distance.-Supplication of Europe to

America-St. George's Spear in the Throat of the Dragon.-The Aggregate Loss to the

United States, since 1791, for Want of a Protective System.-The Loss comprehends

the Use of the Capital in all Time.-The Effects of new Arts and new Pursuits under

a Protective System.-A Variety of Facts on this Point.