The opinions of Mr. Madison as thus shown in the first legislation by Congress are the more significant from the fact that he belonged in the Jeffersonian school, believed in the strictest construction of granted power, was a zealous Republican in the partisan divisions of the day, and was always opposed to the more liberal, or, as he would regard them, the more latitudinarian views of the Federal party. In regard to the protection and encouragement of manufactures there seemed to be no radical difference between parties in the early period of the government. On that issue, to quote a phrase used on another occasion, "they were all Federalists and all Republicans." Mr. Hamilton's celebrated report on Manufactures, submitted in answer to a request from the House of Representatives of December, 1790, sustained and elaborated the views on which Congress had already acted, and brought the whole influence of the Executive Department to the support of a Protective Tariff. Up to that period no minister of finance among the oldest and most advanced countries of Europe had so ably discussed the principles on which national prosperity was based. The report has long been familiar to students of political economy, and has had, like all Mr. Hamilton's work, a remarkable value and a singular application in the developments of subsequent years. MR. HAMILTON'S PROTECTION VIEWS. Mr. Hamilton sustained the plan of encouraging home manufactures by protective duties, even to the point in some instances of making those "duties equivalent to prohibition." He did not contemplate a prohibitive duty as the means of encouraging a manufacture not already domesticated, but declared it "only fit to be employed when a manufacture has made such a progress, and is in so many hands, as to insure a due competition and an adequate supply on reasonable terms." This argument did not seem to follow the beaten path which leads to the protection of "infant manufactures," but rather aimed to secure the home market for the strong and well-developed enterprises. Mr. Hamilton did not turn back from the consequences which his argument involved. He perceived its logical conclusions and frankly accepted them. He considered "the monopoly of the domestic market to its own manufacturers as the reigning policy of manufacturing nations," and declared that "a similar policy on the part of the United States in every proper instance was dictated by the principles of distributive justice, certainly by the duty of endeavoring to secure to their own citizens a reciprocity of advantages." He avowed his belief that "the internal competition which takes place, soon does away with every thing like monopoly, and by degrees reduces the price of the article to the _minimum_ of a reasonable profit on the capital employed. This accords with the reason of the thing and with experience." He contended that