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The second problem was finding a suit of clothes made in America. For that he sent a courier to his old friend and fellow general from the American Revolutionary War, Henry Knox. Cotton and wool could be grown and sheared in the colonies, but it had to be sent to England to be turned into clothes.

This was a routine policy for England, and it is why until India achieved its independence in Mahatma Gandhi who was assassinated a year later sat with his spinning wheel for his lectures and spun daily in his own home. It was, like his Salt March, a protest against the colonial practices of England and an entreaty to his fellow Indians to make their own clothes to gain independence from British companies and institutions.

Fortunately for George Washington, an American clothing company had been established on April 28, , in Hartford, Connecticut, by a man named Daniel Hinsdale, and it produced high-quality woolen and cotton clothing as well as items made from imported silk. He wore British black later for the celebrations and the most famous painting. Washington asked his Treasury secretary, Alexander Hamilton, what could be done about that, and Hamilton came up with an point plan to foster American manufacturing, which he presented to Congress in By most of its points had either been made into law by Congress or formulated into policy by either President Washington or the various states, which put the country on a path of developing its industrial base and generating the largest source of federal revenue for more than a hundred years.

Those strategic proposals built the greatest industrial power-house the world had ever seen and, after more than successful years, were abandoned only during the administrations of Ronald Reagan, George H. Bush, and Bill Clinton and remain abandoned to this day. The principal of these are— I. Duties of this nature evidently amount to a virtual bounty on the domestic fabrics, since by enhancing the charges on foreign articles, they enable the national manufacturers to undersell all their foreign competitors. Indeed, all the duties imposed on imported articles, though with an exclusive view to revenue, have the effect in contemplation; and, except where they fill on raw materials, wear a beneficent aspect towards the manufacturers of the country.

Prohibitions of rival articles, or duties equivalent to prohibitions. This is another and an efficacious mean of encouraging national manufactures;…Of duties equivalent to prohibitions, there are examples in the laws of the United States…but they are not numerous. Prohibitions of the exportation of the materials of manufactures. The desire of securing a cheap and plentiful supply for the national workmen, and, where the article is either peculiar to the country, or of peculiar quality there, the jealousy of enabling foreign workmen to rival those of the nation with its own materials, are the leading motives to this species of regulation.

Pecuniary bounties. This has been found one of the most efficacious means of encouraging manufactures, and it is in some views the best; though it has not yet been practised upon by the government of the United States, unless the allowance on the exportion of dried and pickled fish and salted meat, could be considered as a bounty, and though it is less favoured by public opinion than some other modes, its advantages are these— 1.

It is a species of encouragement more positive and direct than any other, and for that very reason, has a more immediate tendency to stimulate and uphold new enterprises, increasing the chances of profit, and diminishing the risks of loss, in the first attempts. It avoids the inconvenience of a temporary augmentation of price, which is incident to some other modes, or it produces it to a less degree; either by making no addition to the charges on the rival foreign article, as in the case of protecting duties, or by making a smaller addition.

The first happens when the fund for the bounty is derived from a different object which may or may not increase the price of some other article, according to the nature of that object ; the second when the fund is derived from the same or a similar object of foreign manufacture. One per cent duty on the foreign article converted into a bounty on the domestic, will have an equal effect with a duty of two per cent exclusive of such bounty; and the price of the foreign commodity is liable to be raised, in the one case, in the proportion of one per cent; in the other, in that of two per cent.

Indeed, the bounty, when drawn from another source, is calculated to promote a reduction of price; because, without laying any new charge on the foreign article, it serves to introduce a competition with it, and to increase the total quantity of the article in the market. Bounties have not, like high protecting duties, a tendency to produce scarcity. Bounties are sometimes not only the best, but the only proper expedient, for uniting the encouragement of a new object. The continuance of bounties on manufactures long established, must almost always be of questionable policy; because a presumption would arise in every such case, that there were natural and inherent impediments to success But in new undertakings, they are as justifiable, as they are oftentimes necessary.

These are of a nature allied to bounties, though distinguishable from them in some important features. Bounties are applicable to the whole quantity of an article produced or manufactured, or exported, and involve a correspondent expense—Premiums serve to reward some particular excellence or superiority, some extraordinary exertion or skill, and are dispensed only in a small number of cases.

But their effect is to stimulate general effort. The exemption of the [raw] materials of manufactures from duty.


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The policy of that exemption, as a general rule, particularly in reference to new establishments, is obvious. Drawbacks of the duties which are imposed on the materials of manufactures. It is believed that it will be found advantageous to extend it to some other articles. The encouragement of new inventions and discoveries, at home, and of the introduction into the United States of such as may have been made in other countries; particularly, those which relate to machinery.

This is among the most useful and unexceptionable of the aids which can be given to manufactures. The usual means of that encouragement are pecuniary rewards, and, for a time, exclusive privileges. The first must be employed, according to the occasion, and the utility of the invention, or discovery. Judicious regulations for the inspection of manufactured commodities. This is not among the least important of the means by which the prosperity of manufactures may be promoted. It is, indeed, in many cases one of the most essential.

Contributing to prevent frauds upon consumers at home, and exporters to foreign countries—to improve the quality and preserve the character of the national manufactures… X. The facilitating of pecuniary remittances from place to place— Is a point of considerable moment to trade in general, and to manufactures in particular; by rendering more easy the purchase of raw materials and provisions, and the payment for manufactured supplies. A general circulation of bank paper, which is to be expected from the institution lately established, will be a most valuable mean to this end.

The facilitating of the transportation of commodities. Improvements favouring this object intimately concern all the domestic interests of a community; but they may without impropriety be mentioned as having an important relation to manufactures. There is perhaps scarcely any thing, which has been better calculated to assist the manufacturers of Great Britain, than the meliorations of the public roads of that kingdom, and the great progress which has been of late made in opening canals. Of the former, the United States stand much in need… These examples, it is to be hoped, will stimulate the exertions of the government and citizens of every state.

There can certainly be no object, more worthy of the cares of the local administrations; and it were to be wished, that there was no doubt of the power of the national government to lend its direct aid, on a comprehensive plan. This is one of those improvements, which could be prosecuted with more efficacy by the whole, than by any part or parts of the Union. They are upon that account, the greatest of all improvements. They are truly invaluable. In countries where there is great private wealth, much may be effected by the voluntary contributions of patriotic individuals; but in a community situated like that of the United States, the public purse must supply the deficiency of private resource.

Weekly American Gray Swans

In what can it be so useful as in prompting and improving the efforts of industry? All which is humbly submitted. This has left us in the precarious position of being unable to make a missile or an aircraft carrier that we may need if we have to defend Taiwan from China without parts from the communist dictatorship of China. From too-big-to-fail to too-big-to-allow-competition, oligarchic corporations have come to dominate virtually every major sector of the American economy; the result has been the devastation of local economies and the prevention of new entrepreneurial small ventures.

In the years before Reagan, the downtowns and the business districts of every city in this nation were unique—and locally owned and operated. There was a certain inefficiency associated with it, but that inefficiency guaranteed healthy local businesses and communities.


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  6. Spending on the education of young people pays back handsomely when they go on to make the society richer and, because of their higher incomes, provide higher income-tax revenues. When Reagan took a budgetary axe to the University of California and ended its free admissions policy, he handed to the countries of Europe and Asia the opportunity to overtake us in everything from patent applications to doctor-to-patient ratios to excellence in engineering and invention.

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