Sec.8.  Suppose foreign broadcloth of a certain quality is sold in this country for $2.50 a yard, and cloth of the same quality manufactured here can not be afforded for less than $3 a yard.  There would now be no encouragement to any one to engage in the manufacture of such cloth; because in order to sell it, he must reduce the price to that of the foreign article, which would subject him to a loss of fifty cents a yard.  Let now a duty of $1 a yard be laid upon the foreign cloth, and the price would be $3.50, and preference would be given to the domestic article, unless the importer should reduce the price of his foreign cloth to $3; in which case, it is to be presumed, about an equal quantity of each would be consumed, and the duty of $1 a yard on the foreign cloth would go into the United States’ treasury.

Sec.9.  The same objects may, to some extent, be effected by the first mentioned power, “to lay taxes, duties,” &c.  In laying duties for revenue, that is, raising money to pay the debts and other expenses of the government, congress may lay the duties upon those kinds of goods which it wishes to protect; and thus indirectly both encourage domestic industry and regulate commerce.  From this it appears that the three objects mentioned may be accomplished under the grant of either one of the two general powers, to lay duties, and to regulate commerce.

Sec.10.  Why, then, it may be asked, were both these powers inserted in the constitution?  The first expressly authorizes the laying of duties only to raise money for paying debts and government expenses; and protection and the regulation of commerce can only be effected indirectly.  Hence, if our arrangements with foreign nations should be such as to render it unnecessary to lay duties to regulate commerce, or encourage domestic industry, money could not be raised without the express power to lay taxes, duties, &c.  And such might be the state of things, that rates of duties sufficient for revenue would be insufficient for the purposes of protection and regulating trade.  Therefore, both powers are properly granted to congress.

Sec.11.  Again, it may be asked, if foreign goods without duty can be had at lower prices than domestic, why is it not better for us to buy them than to force the manufacture and sale of our own at higher prices? and, if there is no other way of raising money, why not do it by direct taxation?  Suppose, for example, as in a preceding section, (Sec.8,) the price of foreign cloth to be $2.50 a yard, for which the farmer has to pay in wheat, or in cash received for it.  But as the wheat has to be shipped to a foreign market, the merchant who takes it in exchange for the cloth, or the cash purchaser, deducts from the foreign market price the cost of transportation and the foreign duty, which, together, let us suppose to be fifty cents a bushel, or one-half of the foreign market price.  A yard of cloth would then cost five bushels of wheat.