ing
in view of the subsequent development of manufacturing enterprises.
"Iron works" he represents as "greatly increasing in the United
States," and so great is the demand that "iron furnished before
the Revolution at an average of sixty-four dollars per ton" was
then sold at "eighty." Nails and spikes, made in large part by
boys, needed further "protection," as 1,800,000 pounds had been
imported the previous year. Iron was wholly made by "charcoal,"
but there were several mines of "fossil coal" already "worked in
Virginia," and "a copious supply of it would be of great value to
the iron industry." Respecting "cotton" Mr. Hamilton attached far
more consideration to its manufacture than to its culture. He
distrusted the quality of that grown at home because so far from
the equator, and he wished the new factories in Rhode Island and
Massachusetts to have the best article at the cheapest possible
rate. To this end the repeal of the three-cent duty on cotton
levied the preceding year was "indispensable." He argued that "not
being, like hemp, an universal production of the country, cotton
affords less assurance of an adequate internal supply." If the
duty levied on glass should not prove sufficient inducement to its
manufacture, he would stimulate it "by a direct bounty."

Mr. Hamilton's conceptions of an enlarged plan of "protection"
included not only "prohibitive duties," but when necessary a system
of "bounties and premiums" in addition. He was earnestly opposed
to "a capitation-tax," and declared such levies as an income-tax
to be "unavoidably hurtful to industry." Indirect taxes were
obviously preferred by him whenever they were practicable. Indeed
upon any other system of taxation he believed it would prove
impossible for the Republic of 1790 to endure the burden imposed
upon the public treasury by the funding of the debt of the Revolution.
More promptly than any other financier of that century he saw that
ten dollars could be more easily collected by indirect tax than
one dollar by direct levy, and that he could thus avoid those
burdensome exactions from the people which had proved so onerous
in Europe, and which had just aided in precipitating France into
bloody revolution.

THE WAR TARIFF ENACTED IN 1812.

Important and radical additions to the revenue system promptly
followed Mr. Hamilton's recommendations. From that time onward,
for a period of more than