Editing Report on Manufactures (section)

==Adoption by Congress==
Though Congress refused to accept Hamilton's proposals in 1791 because of opposition from Madison and his supporters, much of Hamilton's third report would later be adopted by the [[US Congress]] despite continued opposition to the support of industry by subsidies. Both sides agreed that manufacturing independence was desirable and necessary but disagreed on how to obtain it. The Jeffersonian [[Democratic-Republican Party]]'s main objection to subsidy was their fear that subsidy would lead to corruption and favoritism of certain sections of the new nation over others: the north over the agrarian south. That divide would return again and again in issues of economic policy until the outbreak of the [[American Civil War]].

It is often thought that Hamilton's report was completely ignored, but "Hamilton worked to ensure that Congress enacted virtually every tariff recommendation in the report within five months of its delivery."{{sfn|Irwin|2004|pp=801–2. "Although the report is often associated with protectionist trade policies, Hamilton's proposed tariffs were quite modest, particularly in light of later experience [i.e. compared to import duties of the nineteenth century]."}}

Hamilton's revenue-based trade policy, with its more moderate tariffs, meant that by 1794, manufacturers had switched their support from the Federalists to the Democratic-Republicans, who favored higher, more protectionist tariffs.{{sfn|Nelson|1979|p=977. "By the end of 1793 Hamilton's pro-importer political economy was driving manufacturers from Boston to Charleston into opposition to the Federalists."}}