protective duties, I deem it my duty to call your
attention to one or two other considerations affecting this subject.
The first is the effect of large importations of foreign goods upon
our currency. Most of the gold of California, as fast as it is coined,
finds its way directly to Europe in payment for goods purchased.
In the second place, as our manufacturing establishments are broken
down by competition with foreigners, the capital invested in them is
lost, thousands of honest and industrious citizens are thrown out of
employment, and the farmer, to that extent, is deprived of a home market
for the sale of his surplus produce. In the third place, the destruction
of our manufactures leaves the foreigner without competition in our
market, and he consequently raises the price of the article sent here
for sale, as is now seen in the increased cost of iron imported from
England. The prosperity and wealth of every nation must depend upon its
productive industry. The farmer is stimulated to exertion by finding a
ready market for his surplus products, and benefited by being able to
exchange them without loss of time or expense of transportation for the
manufactures which his comfort or convenience requires. This is always
done to the best advantage where a portion of the community in which
he lives is engaged in other pursuits. But most manufactures require
an amount of capital and a practical skill which can not be commanded
unless they be protected for a time from ruinous competition from
abroad. Hence the necessity of laying those duties upon imported goods
which the Constitution authorizes for revenue in such a manner as to
protect and encourage the labor of our own citizens. Duties, however,
should not be fixed at a rate so high as to exclude the foreign article,
but should be so graduated as to enable the domestic manufacturer
fairly to compete with the foreigner in our own markets, and by this
competition to reduce the price of the manufactured article to the
consumer to the lowest rate at which it can be produced. This policy
would place the mechanic by the side of the farmer, create a mutual
interchange of their respective commodities, and thus stimulate the
industry of the whole country and render us independent of foreign
nations for the supplies required by the habits or necessities of
the people.

Another question, wholly independent of protection, presents itself,
and that is, whether the duties levied should