praiseworthy cession on the part of the several older states.* It is true those tracts might in a certain sense be called ownerless; but it was in conformity with and conducive to good order, not to let every one seize upon and appropriate the lands at his own discretion, but to allow the government to proceed with system and method, and promulge judicious laws respecting them. Those individuals who had settled here and there at pleasure were treated with proper fairness and allowed the right of preemption.†

When greater assumptions on the part of individuals had properly been repulsed, some states preferred the claim that all the land lying within their boundaries belonged to them, and that the general government had nothing to do with it. To this it was replied: Although a territory, when its inhabitants amount to the requisite number, is raised to the rank of a state of the great confederacy, it does not follow that the Union has bestowed or must bestow on it all the public land lying within its borders. The new settlers possess not the slightest right in this respect; whereas the right of the Union rests on purchase and cession, has never been disputed, but has been confirmed times without number. Such a partial and inconsiderate bestowal of the public lands would rob the government of one of its principal sources of revenue, cast all the burthens of the state upon the customs, and deprive the older states of what they obtained for their money or by their exertions. They have purchased, defended, surveyed, valued, and brought it into market, and have employed the proceeds for the public good; the government shows itself reasonable enough, in claiming no rights of of sovereignty within the bounds of an individual state, but only the rights of a private proprietor, while it also assumes the obligations that rest on

one.

The moderate defenders of the claims of those states responded: Our purpose is not to make an immense donation to them, but to simplify the inappropriate and complicated duties of the central administration, to do away with injurious influences, and to put an end to perpetual disputes between Congress and the single states; in order however to supply the wants of the general government, we will take from the proceeds of the sales conducted by the states so much per centum as remains after deducting the expenses of managing the lands. Should the management and sale of the lands lying in the several states be transferred to them, the sums to be paid to the general government would be augmented rather than diminished; and consequently the Union would not be a loser, but a gainer, by the more active exertions of the states.

* Namely, Virginia, Massachusetts, New Jersey, the Carolinas, Georgia, and Tennessee. Statutes of South Carolina, i. 169. Murray, ii. 432,

† Arend's Mississippi, p. 227.

‡ Calhoun's Speeches, pp. 405, 452.

In recent times many whigs have gone beyond these propositions, and vehemently advocated an unconditional distribution of the proceeds of the public lands among the single states; while the democrats have combated this demand with equal zeal. The former have often assumed without proof, that if the proceeds were not distributed in the above manner, the amount would be senselessly squandered away. But since the decision relative to the disposal of these moneys rests with Congress, such an abuse is nearly impossible, or at least it is not easy to perceive what security there is for a more judicious course of proceeding on the part of the single states. The fear lest the states within which the lands lie should forcibly take possession of them and let the other states have nothing, is also exaggerated; for the majority in Congress would always guard against such open usurpation.

If the income from the public domain is large, this fortunate circumstance should be employed for the reduction of taxes; but it seems almost as though there were a desire to cut off this resource, for the sake of raising the duties (for this and totally different objects) constantly higher. At any rate a deficiency in the income from the land must be covered in one way or another; and the joy at its distribution would be turned into sorrow on reflecting that, besides the amount of such deficiency, the expenses of managing the customs must also be raised; which would be giving each individual a five-franc piece, and taking from his pocket a silver dollar.

Both the letter and the spirit of the federal Constitution point to the revenue arising from land, as the first financial resource of the Union; and in fact it would be no misfortune, if there were no need of any other tax. Those certainly who wish to annihilate it cannot call themselves conservative in this respect. On the contrary they must own that what they propose is an innovation, and are under the necessity of proving that it would be beneficial. If, however, at some future period all the public lands should be sold, and this source of revenue be exhausted, the wealth and population of the country will have been so much increased in the meanwhile, that even a far greater amount can be easily raised. For the present, I agree with an earlier declaration of Henry Clay, where he says (Speeches, ii. 112 : "Every consideration of duty to ourselves and to posterity enjoins that we should abstain from the adoption of any wild project that would cast away this vast national property, holden by the general government in sacred trust for the whole people of the United States."*

Besides many millions of acres of uncultivated land which are the undisputed property of the single states, the land belonging to

* A second very eloquent passage in favor of retaining the proceeds of the public lands is found in Clay's Speeches, ii. 490.

the Union is estimated at from 1000 to 1100 millions of acres. For the management of these the greatest domains in the world, there is in Washington a general land-office which directs the surveys, preparation of maps, auctions, collection of the receipts, &c. The land is divided into townships, six English miles square; and each township into 36 sections, of 640 acres each. Section No. 16 of each township is set apart for common schools, and other land for colleges and universities. Two per cent. of the purchase money is reserved by the government for the encouragement of learning, and three per cent. for the construction of roads; together with all salt-springs and lead-mines.* At first the land was sold in great tracts; and this enticed speculators, who either made a fortune by their operations, or turned bankrupt. Now smaller portions, down to 80 acres, are offered.

Moreover, a great deal was formerly sold on credit, in which case it was often impossible to collect the debt; hence it is now sold only for ready money at $1.25 per acre, with a guaranty of five years' exemption from taxation.† These favors have necessarily had the effect of depressing the price of land in those states of the Union which were already settled; for which reason, if for no other, the idea of giving away the public lands gratuitously can meet with no general acceptance.‡ On the other hand, the price cannot be raised, without putting a stop to the sale. To the proposal, of setting up lands of different qualities at different prices, it was replied: The valuation would be attended with great difficulties, occasion a vast expense, and furnish opportunities for frauds of every kind. At first in these transactions all is a subject of hope and imagination, every thing is indeterminate and relative. If the plan were adopted after the best lands of a district have been culled out, of reducing the price for the remainder at stated periods, many would put off buying, and the advantages of a dense population would be lost. High prices and great costs of settling repel small proprietors, and lead (which is less desirable) to the formation of large estates. Care must be taken also not to set the price too low; lest rich adventurers should selfishly press forward, and afterwards retail their purchases to poor people, and so enslave them after the manner of the Irish. The receipts from the sales of land have greatly risen in comparison with former times; yet even in the last ten years their amount has fluctuated in an extraordinary manner; for which very different reasons have been assigned, as for instance the bank system or want of system, payments in paper or specie, the number of immigrants, &c. ||

CHAPTER XVIII.

MANUFACTURES AND COMMERCE.

Progress of Manufactures-Commerce-Imports, Exports, Tonnage-Regulations of Trade-Rate of Interest-Value of Imports and Exports.

THERE is no doubt but that the natural circumstances of North America point especially to the profitable cultivation of the extremely cheap land, and that it will continue to be an agricultural country in the main for a long while to come.* From this, however, there results in the first place, the development of many branches of domestic manufacture in linen and woollen; as also the preparation of soap, candles, and other articles of daily use. Another principal means of promoting American manufactures was the last war with England (from 1813 to 1815). The Americans, thus thrown violently back upon their own resources, were obliged to set up establishments for the production of many indispensable articles; and when the war was brought to a close, many manufactures remained in a sound progressive state. For it lies in the nature of things, that a country which augments so rapidly in population and wealth should extend its manufactures more and more, until they gradually include articles of every kind. The opinion that it was an unprofitable and perhaps immoral squandering of their powers, to establish manufactures to a greater extent, gradually died away; and another and still more erroneous one sprang up in its stead, to wit, that the increase of manufactures should be promoted by artificial means and even by force. The legislation consequent hereupon, this aping of European theories and systems of over-government (otherwise so detested in America), has led from time to time to the most violent complaints, and even threatened the permanence of the Union itself. But of this we shall hereafter speak more particularly.

In consequence of these laws, or, as others maintain, in spite of them, the proceeds from manufactures have increased enormously; they were reckoned in the year 1840 at 239 millions of dollars.* Of this there came,

In the year 1820 there were occupied in the United States in manufactures of every kind, 349,000 persons; and in the year 1840, 791,000. About the year 1815, all the weaving in America was done by hand; in 1843, in the factory town of Lowell alone there were 201,076 spindles, and there were made weekly 1,425,000 yards of cotton goods.† A like progress is found in the iron and other factories. In the belief that the high protective tariff secured to every adventurer great and certain gains, competition has increased immensely and even gone beyond all bounds, where the capital would doubtless have been applied to other purposes in the natural course of things.

Humane laws have been passed respecting the treatment of children in the factories, though they are not always strictly obeyed. Thus, for instance, they are not to be taken before 12 (in some places 15) years of age, are not to be employed over ten hours, and are to be sent to school. The evils of a too numerous and impoverished factory population have not yet arisen; or where they do appear, the fruitful tracts of land still unoccupied present an adequate means of release from them.

A glance at the geographical position and extent of the United States, shows that they are called by nature to carry on an extensive commerce; but that mere position is not the only requisite, will appear on a comparison of North with South America. The spirit, the activity, the boldness that animate the inhabitants of the United States, have led them further and caused them to make greater attainments in this pursuit, than friends at first hoped for or opponents feared.

What a difference! During their dependence on England, the trade of the colonies was thwarted and restricted in countless ways; nay, many branches of manufacture (e. g. iron-working, hat-making, &c.) were wholly prohibited. Now, on the contrary, there are throughout the Union no internal lines of demarcation, no export duties, equal import duties, and a commerce that