Passage 2 Until the war of 1812, the united states had always bought its manufactured goods, especially its fine cloth, from England. During the War, however the United States could neither sell its raw material nor buy manufactured good in European markets. There was nothing to but manufacture its own goods. By the end of the war of 1812 there were nearly 150,000 men and women working in cotton and woolen mills in the United stated. We have no figures on the number of workers employed in the various stages of iron production, but we know that the iron industry had greatly increased. Besides the cloth and iron works, there was a great leather industry, including shoe factories, saddle shops and harness-making shops, while American hatters were able to supply the market with wool hats and fur caps.