FIRST TARIFF.
This state of things called the Convention and forced it to give power to Congress to protect our national industry. This produced the first American tariff, in 1789, which gave especial protection to our iron manufactures. When they suffer, every branch of industry suffers more or less. In 1791 our iron manufactures were in a prosperous con dition and were profitably operated. The affairs of the country were in a flourishing condition. The tariff on rolled iron and steel and all the manufactures of iron except hardware was in 1794 fixed at 15 per cent. when imported in American vessels, with an addition of 10 per cent. when in foreign bottoms. These rates were retained until 1816. The War of 1812, gave a great impulse to our manufactures; but they were again de pressed and rendered almost inactive at its close from the inadequate protection then afforded to the high prices of the war and the constant improvement going forward in the English manufactures and the consequent reduction in prices.
So great was the importation of foreign goods which followed the peace that during the first three-quarters of 1815 the value of our imports amounted to $83,000,000, and during the fiscal year next ensuing $155,250,000 were imported, which were paid for principally in specie and notes at interest ! The English manufacturers at this stage of our history made great sacrifices in order to control our trade and break down our manufactures. Lord Brougham said in Parlia ment that "it was even worth while to incur a loss upon the first exportation, in order, by the glut, to stifle in the cradle these rising manufactures in the United States which the war had forced into existence contrary to the natural course of things." These ex
cessive importations were fraught with the most disastrous consequences. To our manu factures they brought ruin. Goods of all kinds, as well as labor, took a sudden and ruinous fall, and our experts and laborers were driven, in consequence, to other and new fields of labor. Most of them turned to the soil for support ; but the farmers, like the manu facturers, suffered. The home-market cut off, reduced the price of their products to a comparatively greater extent than the reduction in the price of manufactured articles.
The national finances were in a deplorable condition, while our domestic industry was almost crushed out. The public debt was $123,016,375, and the annual revenues demanded by the Government was $24,000,000, and entirely beyond our means.
Necessity compelled an advance in the duties, and the amended Act of 1816 resulted ; but the duties were so unequally laid that they produced more than double the require ments of the Government, without giving much protection to our manufactures, since the excess of imports continued. In 1818 the imports continued large, and amounted during that year to $121,750,000, against $73,854,437 of exports, which is greater than the exports of any other year previous to 1833. The drain of specie was consequently very great. The ports of Boston and Salem alone exported $5,000,000 within the twelve months.