In 1789, Representative James Madison of Virginia navigated to passage the first major Act under the Constitution. The act pertained to Tariffs and read as follows: "Whereas it is necessary for that support of government, for the discharge of the debts of the United States, and the encouragement and protection of manufactures, that duties be laid on goods, wares and merchandise". The main purpose of the act was to provide funds to meet the costs of operating the new central government and pay the revolutionary war debt, but it also provided a degree of protection for manufacturing.
Fast-forward to 1816, the War of 1812 had just ended and America had new debts to pay. But now in 1816, American manufacturing in the Northeast was beginning to boom, and there was a rising nationalism and sense of pride in America. The entrepreneurial spirit in America was alive, and how much protection it needed was up for debate. America had won it's personal liberty in the Revolutionary war, and it's economic or commercial freedom in the War of 1812. Could America succeed as a complete and uninhibited free market? And what role should the tariff play in America?
In his 1815, State of the Union address, Madison set out to answer these questions. James Madison told Congress that it was now time to consider how the duties on imports impact the manufacturing revenue, and it was now time to consider increasing tariffs on goods produced outside of the united States. Madison discussed the concept of a "free market capitalism". He explained that in theory, if each market or industry was left to it's own, the wisdom and interests of the market leaders would eventually yield a maximum revenue. Then Madison pivoted, stating that while this may be true in the most general cases, there are always exceptions to the general rule. Besides the fact that other nations will not play by these same rules, our own experience teaches us that there are often great barriers to entering and developing a manufacturing market, and that quite often a country may go for along time without it even if that country has the proper resources and skills to be successful. Madison remarked that it just becomes too expensive for even the greatest minds with the best resources to be profitable as a pioneer in some manufacturing markets. Thus, Madison concluded that if we are to achieve a wealthy and powerful manufacturing industry in America, then we must protect our manufacturing interests. Under these circumstances, a protection "not more than is due to the enterprising citizens" will not only protect our manufacturing interests against occasional or unfair competition from abroad, but will lead to great wealth and commercial strength across the globe.
Here are the actual words of James Madison from his 1815 State of the Union Address.
"In adjusting the duties on imports to the object of revenue the influence of the tariff on manufactures will necessarily present itself for consideration. However wise the theory may be which leaves to the sagacity and interest of individuals the application of their industry and resources, there are in this as in other cases exceptions to the general rule. Besides the condition which the theory itself implies of reciprocal adoption by other nations, experience teaches that so many circumstances must concur in introducing and maturing manufacturing establishments, especially of the more complicated kinds, that a country may remain long without them, although sufficiently advanced and in some respects even peculiarly fitted for carrying them on with success. Under circumstances giving a powerful impulse to manufacturing industry it has made among us a progress and exhibited an efficiency which justify the belief that with a protection not more than is due to the enterprising citizens whose interests are now at stake it will become at an early day not only safe against occasional competitions from abroad, but a source of domestic wealth and even of external commerce."In April of the following year, Congress led by Henry Clay of Kentucky passed the Tariff Act of 1816 to protect the American Manufacturing. Additional tariffs followed in 1820, 1824. Then in 1828, Congress passed what became labeled as the "Tariff of Abominations" because it had a disastrous effect on antebellum Southern economy. Throughout the history of America, protecting American manufacturing has been a keystone of political debates . Shown in the picture above, is then President-elect Donald Trump visiting with Carrier following the announcement of the deal to keep 1000 jobs in Indiana in 2016. Between complaints of unfair trade manipulation by China and the use of tariffs to keep manufacturing in America, Donald Trump is repeating many of Madison's argument's 200 years later.
http://www.presidency.ucsb.edu/ws/index.php?pid=29457
https://en.wikipedia.org/wiki/Tariff_of_1789
http://www.investopedia.com/terms/f/freemarket.asp
http://www.stateoftheunionhistory.com/2015/07/consumption-of-lead-in-united-states.html
https://upload.wikimedia.org/wikipedia/commons/c/c3/Hartmann_Maschinenhalle_1868_(01).jpg
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