The woolen industry received a great impetus in this same period of
artificial stimulation, but it failed to expand with the same rapidity,
owing to the scarcity and cost of the finer grades of wool.
Nevertheless, in the year 1816, about $12,000,000 were invested in the
manufacture of woolen fabrics. Like the cotton industry, this owed its
development to the policy of Presidents from Virginia. It is one of the
ironies of history that Jefferson and Madison should have unwittingly
sacrificed Southern planters to build up industries in the North, and
that New Englanders should have excoriated those worthies for policies
which became the source of New England prosperity.
To these new industries peace spelled disaster. English manufacturers
seized the opportunity to unload the goods which they had been piling up
in their warehouses for years. Importations which had amounted to
$13,000,000 in 1813 rose to the staggering sum of $147,000,000 in 1816.
Not even import duties stemmed the tide, for as Lord Brougham stated in
Parliament, "It was well worth while to incur a loss upon the first
exportation, in order, by a glut, to stifle in the cradle those rising
manufactures in the United States which the war had forced into
existence, contrary to the natural course of things."
In October, 1815, the cotton manufacturers of Rhode Island sent a
memorial to Congress, stating that their one hundred and forty factories
were threatened with destruction by this cut-throat competition. Such
complaints seemed unduly apprehensive; yet before the year closed, most
of the textile mills had shut down. The distress of New England was no
longer feigned. Caught in a process of transition from shipping to
manufacturing, capital could neither advance nor retreat. It was a
legitimate case for governmental aid. Even Jefferson laid aside his
early prepossessions in favor of a simple bucolic life for the American
citizen, and admitted that "to be independent for the comforts of life,
we must fabricate them for ourselves. We must now place the manufacturer
by the side of the agriculturist." Madison, too, departed from the
Virginia faith so far as to recommend sufficient protection of "the
enterprising citizens whose interests are now at stake" to guard them
"against occasional competition from abroad."
Public-domain text, read in full here on John Shaqi.
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