Browsing "Antebellum Economics"

The War for Tariffs, Taxes and Astonishing Profits

The war commenced by Lincoln in 1861 immediately presented his administration with the problem of a conflict the United States could simply not afford. In April 1861, federal spending was only about $172,000 a day, raised by tariffs and land sales. By the end of July 1861, Lincoln had caused this to increase to $1 million, and by the end of December it was up to $1.5 million per day. Also in December 1861 Northern banks had to stop paying their debts in gold, with the federal government doing the same shortly after and resorting to printing money. The country had gone off the gold standard, Wall Street was in a panic, and Lincoln would lament, “The bottom is out of the tub, what shall I do?” The cost of the war would eventually reach $8 billion, enough to have purchased the freedom of every slave five times over – and provided each with the proverbial 40 acres, and the mule.

Bernhard Thuersam, www.Circa1865.com

 

The War for Tariffs, Taxes and Astonishing Profits

“By May 1864 [financier Jay] Cooke was selling [Northern] war bonds so successfully that he was actually raising money as fast as the War Department could spend it, no mean feat for that was about $2 million a day at this point. Altogether, the North raised fully two-thirds of its revenues by selling bonds. If Abraham Lincoln must always be given the credit for saving the Union, there is also no doubt that the national debt was one of the most powerful tools at his disposal for forging victory.

Although the [Northern] people were willing to endure very high taxes during the war, peacetime was another matter altogether. Immediately after the war the cry for repeal of the wartime taxes became insistent. With military expenses quickly dropping, the problem, was what taxes to cut. American industrialists, who had prospered greatly thanks to wartime demand and wartime high tariffs, naturally did not want the tariffs cut.

Because the Civil War had broken the political power of the South, the center of opposition to the tariff, they got their way. The tariff was kept at rates far above the government’s need for revenue as the North industrialized at a furious pace in the last three decades of the nineteenth century and became the greatest – and most efficient – industrial power in the world.

Of course, no matter how large, efficient, and mature these industries became, they continued to demand [tariff] protection, and, thanks to their wealth and political power, get it.  As Professor William Graham Sumner of Yale explained as early as 1885, “The longer they live, the bigger babies they are.” It was only after the bitter dispute between Andrew Carnegie and Henry Clay Frick caused the astonishing profits of the privately held – and highly protected – Carnegie Steel Company to become public knowledge, in 1899, that the political coalition behind high tariffs began to crack.

Before the Civil War there had been little advocacy of an income tax in this country, at least at the federal level, although by the war six States had implemented such taxes for their own revenue purposes. But once a federal income tax was in place, thanks to the Civil War, it quickly acquired advocates, as political programs always do.

These advocates pushed the idea relentlessly . . . Republican Senator John Sherman . . . said during a debate on renewing the income tax in 1872, that “here we have in New York Mr. Astor with an income of millions derived from real estate . . . and we have along side of him a poor man receiving $1000 a year. [The law] is altogether against the poor man . . . yet we are afraid to tax Mr. Astor. Is there any justice in it? Why, sir, the income tax is the only one that tends to equalize these burdens between the rich and the poor.”

(Hamilton’s Blessing, John Steele Gordon, Penguin Books, 1997, pp. 79-83)

War Profiteering in the North

Published as a textbook well before America’s cultural revolution of the 1960’s, John Hicks “The Federal Union” can be trusted as a fairly accurate source of United States history and free of cultural Marxist revisionism. Below, he touches on the North’s generous government supply contracts, child labor and general wartime prosperity while its bounty-enriched blue-clad soldiers devastated Americans in the South to preserve a territorial Union.

Bernhard Thuersam, www.Circa1865.com

 

War Profiteering in the North

“When the Civil War broke out the North had not fully recovered from the depression that had followed the panic of 1857, and for a time business interests were more frightened than stimulated by the clash of arms. By the summer of 1862, however, a surge of prosperity had put in its appearance that was to outlast the war.

With millions of men under arms the [Northern] government was a dependable and generous purchaser of every kind of foodstuff, and its equally great need of woolen goods and leather strengthened the market also for raw wool and hides. Probably the sales of the farmers made directly or indirectly to the government more than offset the losses sustained by wartime interference with sales to the South.

[And] with the South out of the Union, a homestead law, so long the goal of believers in free land, was speedily enacted (1862). Thereafter any person who was head of a family, or had arrived at the age of twenty-one years, whether a citizen of the united States or an alien who had declared his intention of becoming a citizen, might take up a quarter section of public land, and, after having lived upon it for five years and improved it, might receive full title to it virtually free of charge.

What came in later years to be called “heavy industries” profited enormously from the war. Purchases of munitions abroad practically ceased after the first year because of the rapidity with which American factories supplied the government’s needs . . . the government itself went deeply into the business of manufacturing war materials as public opinion would permit.

High tariffs ensured the northern manufacturers against the dangers of foreign competition. A protectionist policy had been demanded by the Republican national platform of 1860, and a higher schedule of tariffs . . . was placed upon the statute books two days before [President James] Buchanan left office. This speedy answer to the prayers of the protectionists was made possible by the withdrawal from Congress of the delegations from the seven seceding States of the lower South, and by the fact that President Buchanan was no longer unmindful of the wishes of the manufacturers of his home State [of Pennsylvania].

The original Morrill Tariff Act was repeatedly revised upward during the war, until by 1864 the average of duties levied on imports had reached forty-seven per cent, the highest thus far in the history of the nation. The significance of this development can scarcely be overemphasized. A policy which the South had persistently blocked in the years preceding the war became an actuality during it, and as subsequent events were to prove, remained as a permanent fixture in American political and economic life.

The profits of war bred a spirit of extravagance and frivolity among the non-combatants of the north that contrasted oddly with the long casualty lists displayed as a regular part of the daily news. Social life reached a dizzying whirl, with more parties and dances, theaters and circuses, minstrel shows and musicales than ever had been known before.

According to a statement published by the Springfield Republican in 1864, many of the factories whose profits during the war had been “augmented beyond the wildest dreams of their owners” paid their laborers only from twelve to twenty per cent more than before the war. “There is absolute want in many families, while thousands of young children who should be in school are shut up at work that they may earn something to eke out the scant supplies at home.”

(The Federal Union, A History of the United States to 1865, John D. Hicks, Houghton Mifflin Company, 1948, pp. 660-665)

Generations Living Off Future Generations

Jefferson wrote in 1792: “As the doctrine is that a public debt is a public blessing, so they think a perpetual one is a perpetual blessing, and therefore wish to make it so large that we can never pay it off.” Prior to 1861 it as common for American presidents to view that indebting future administrations was both immoral and unconscionable.

Bernhard Thuersam, www.Circa1865.com

 

Generations Living Off Future Generations

“On September 6, 1789, Jefferson admonished James Madison from Paris that the country should get straight, “at the threshold of our new government,” how we are to keep the debt from destroying the democracy. Jefferson’s premise, which he believed to be “self-evident,” is that one generation cannot – either morally or in fact – bind another.

It follows that “No generation can contract debts greater than may be paid during the course of its own existence.” The “earth belongs in usufruct [trust] to the living . . . [T]he dead have neither powers nor rights over it.” If one generation can charge another for its debts, “then the earth would belong to the dead and not to the living generation.”

Jefferson continued: “The conclusion then, is, that neither the representatives of a nation, nor the whole nation itself assembled, can validly engage debts beyond what they can pay in their own time.”

Madison wrote back that he generally agreed but thought debt was justifiable if it built a project that benefited the future taxpayer – a useful bridge, for example. Jefferson answered that the power to borrow was too dangerous to allow exceptions – any exception would expand or destroy the prohibition.

Madison’s argument seemed plausible, but Jefferson’s camel’s-nose-under-the-tent concern was right. No government will stay within Madison’s exception. World War II, the last time this country could make any kind of legitimate case for a benefit to future generations, was in fact financed 47 percent by pay as you go taxes, which provided $137 billion out of a total cost of $304 billion.

Jefferson could not get his 1798 amendment adopted, but the country got more chances to adopt Jeffersonian principles in 1994, 1995, and 1996 when Sen. Sam Nunn (D., GA) proposed a Balanced Budget Amendment. At the time, the national debt was large (about four trillion dollars) but could have been dealt with. It was not yet a perpetual debt.

Senator Nunn called his legislation the “Jefferson Amendment.” It required that Congress balance expenses with revenues [and] the public constantly supported Nunn’s amendment by 75-percent margins. But he was defeated by the Clinton Cabinet, which argued that the economy would crash if the federal government couldn’t borrow.

A New York senator said the amendment’s passage could “lead to the devastation of the banking industry.” With the defeat of the Nunn Amendment, the boat sailed for the Republic.”

(Just One More Thing, William J. Quirk, Can the Republic Be Restored?, Chronicles, May 2009, pg. 15)

Yankee Tinkerer Perpetuates Slavery

Eli Whitney of Massachusetts invented his new labor-saving device at a time when the liberating effects of the new republic were emancipating those who had been enslaved by African tribes, sold to British slave-traders, and shipped to North America on New England slavers.  With cotton cultivation made profitable, slavery would expand. 

Bernhard Thuersam, www.Circa1865.com

 

Yankee Tinkerer Perpetuates Slavery 

“The handiwork of a Yankee tinkerer in the summer of 1792 changed everything. Eli Whitney was a genius of a type who would become familiar in the course of the next century, like Robert Fulton, John Deere, Cyrus McCormick, Samuel F. B. Morse, and Thomas Edison, who fused native mechanical aptitude with the entrepreneurial instincts of the dawning industrial age. It was said that as a boy in Massachusetts during the Revolution, Whitney had set up his own small forge and made nails to sell to his neighbors, and then converted them to hairpins after the war.

After graduating from Yale, he went South to take a position as a tutor. As a guest in the home of the widow of General Nathaniel Greene, in Georgia, Whitney overheard several of her neighbors discussing the problems of cotton cultivation. Planters were well aware that a potentially vast market for American cotton was developing in England, where textile manufacture had been revolutionized by the factory system . . .  

Whitney later wrote, “There were a number of very respectable gentlemen at Mrs. Greene’s who all agreed that if a machine could be invented which would clean cotton with expedition, it would be a great thing both to the inventor and to the country. I involuntarily happened to be thinking on the subject and struck out a plan of a machine in my mind.” It was the cotton gin, which would ultimately transform American slavery, project it into its boom time, and transform it into a pillar of the nineteenth-century American economy.

[Whitney] Established a factory at New Haven, and was soon shipping gins Southward, where they would lead to a spectacular burgeoning of cotton cultivation, which would soon be matched by an exploding demand for slaves. [New England] Slave traders made fortunes buying up “surplus” slaves, and long, grim lines of them chained together in awkward lockstep made a familiar sight on the roads leading westward from Maryland, Virginia, and the Carolinas to the slave markets of the frontier Southeast.”

(Bound For Canaan, Fergus Bordewich, Harper Collins, 2005,   pp. 41-42)

 

 

 

 

Spending the Money of Future Generations

Robert Hayne of South Carolina followed Jefferson’s admonition that the national debt was not something to be passed on to future generations; it was considered immoral for a president not to pay the debts incurred under their administrations before leaving office. In encouraging an unending public debt, Daniel Webster, on the other hand, Webster was promoting the American System of Whig politician Henry Clay which would give the government an endless supply of money with which to buy influence and power.  

Bernhard Thuersam, www.Circa1865.com

 

Spending the Money of Future Generations

“The gentleman from Massachusetts [Webster], in alluding to a remark of mine that before any disposition could be made of the public lands, the national debt (for which they stand pledged) must be first paid, took occasion to intimate (that Southerners desire to pay the national debt) “arises from a disposition to weaken the ties which bind the people to the Union.”  

But, adds he gentleman, “so far as the debt may have an effect in binding the debtors to the country, and thereby serving as a link to hold the States together, he would be glad that it should exist forever.” Surely then, sir, on the gentleman’s own principles, he must be opposed to the payment of the debt.

Sir, let me tell that gentleman that the South repudiates the idea that a pecuniary dependence on the Federal Government is one of the legitimate means of holding the States together. A monied interest in the Government is essentially a base interest . . . it is opposed to all the principles of free government and at war with virtue and patriotism. In a free government, this principle of abject dependence if extended through all the ramifications of society must be fatal to liberty. Already we have made alarming strides in that direction.

The entire class of manufacturers, the holders of stocks with their hundreds of millions in capital, are held to the Government by the strong link of pecuniary interests; millions of people, entire sections of the country, interested, or believing themselves to be so, in the public lands and the public treasure, are bound to the Government by the expectation of pecuniary favors.

If this system is carried on much further, no man can fail to see that every generous motive of attachment to the country will be destroyed, and in its place will spring up those low, groveling, base and selfish feelings which bind men to the footstool of despots by bonds as strong and as enduring as those which attach them to free institutions. 

(The Webster-Hayne Debate on the Nature of the Union, Herman Belz, Editor, Liberty Fund, 2000, pp. 42-43. Speech of Robert Y. Hayne of South Carolina, January 25, 1830) 

 

Introducing the Slaves to Jesus

In the small plantation communities where African slaves lived and labored it was Southern men like Presbyterian Rev. Charles Colcock Jones who brought them from heathenism to Christianity.  The elder Roswell King mentioned below was a Connecticut native who came South to manage the large antebellum estates of Pierce Butler in Glynn County, Georgia. The son, also named Roswell King, later moved to northern Georgia to establish cotton and woolen mills and the town of Roswell, Georgia still bears his name.  It was Northerner Eli Whitney who made large scale cotton production profitable — which supplied slave-produced material to hungry New England mills.  Manhattan bankers provided easy credit to enable land acquisition for more cotton production.

Bernhard Thuersam, www.circa1865.org

 

Introducing the Slaves to Jesus

“My experience with these people [African slaves] was very large, having been for long years the contract physician on the river plantations where religious opportunities were very limited. In many cases, the Negro preacher or watchman (as they were called) was the only teacher and leader they had. Though on a few of the larger estates, salaried chaplains were employed.

I recollect many years ago being engaged in correspondence on the subject. The Reverend Jones spent many years of his useful life, and liberally of his private resources, in endeavoring to do good to these ignorant and dependent people by religious teaching and preaching.

To reassure him in the self-sacrifice of time and means, he addressed a letter of inquiry to Mr. Roswell King of Butler’s Island, where there were nearly a thousand slaves, [asking] whether those professing religion were more orderly and faithful than the others.

I commended the pious work in which he was engaged, but it being often at night and involving a long ride, and his health not being strong, I begged him to assign his labors to some lesser light in the church who was more physically able.

There were wider and more congenial fields waiting for him where his education, talents, eminent piety, and zeal in his Master’s service made him an honored and distinguished name to his life’s end.”

(Dr. Bullie’s Notes, Reminiscences of Early Georgia, James Holmes, Cherokee Publishing Company, 1976, pp. 161-163)

Protesting British and New England Slave Trading

During the colonial period it was common for North Carolina planters needing labor to trade cargoes of tar and pitch to New Englanders for the slaves they imported. On the eve of the Revolution the North Carolina Provincial Congress resolved that “We will not import any slave or slaves, nor purchase any slave or slaves imported or brought into this province by others from any part of the world after the first day of November next [1774].”

Bernhard Thuersam, www.circa1865.org

 

Protesting British and New England Slave Trading

“So far as can be determined, no tax was levied on the importation of slaves into North Carolina prior to the Revolution. On the other hand, the Virginia Assembly made numerous attempts to discourage the importation of slaves by imposing from time to time a tax on all slaves brought in from Maryland, North Carolina, the West Indies, and Africa.

The first impressive protest for any considerable body of citizens of the colony against the African slave trade was registered by the freeholders of Rowan County [North Carolina] in 1774. They placed themselves on record against the African slave trade in the following resolution:

“Resolved that the African slave trade is injurious to this colony, obstructs the population of it, prevents manufacturers and other useful emigrants from Europe from settling among us, and occasions an annual increase of the balance of trade against the colonies.”

Due in part to the dearth of labor occasioned by the Revolution, there was a resumption of the slave trade after the war. It was not, in fact, until 1787 that the General Assembly took the initial step in taxing the traffic, basing its action on the general ground that the importation of slaves “into this State is productive of evil consequences and highly impolitic.”

Whatever the motive, a duty of 5 [pounds] was levied on all slaves brought in by water. Slaves between the ages of thirty and forty were made subject to the same duty, while those between the ages of twelve and thirty were subject to a duty of 10 [pounds]. In addition, a general head tax of five pounds was imposed on all slaves imported from the coast of Africa. The act of 1787 did not prohibit, but no doubt discouraged, the slave trade.

Due presumably to the ratification of the Federal Constitution by North Carolina in 1789, the act of 1787 was repealed in 1790, and there was no restriction on the importation of slaves until 1794 . . . and in that year a heavy fine was imposed on the importation of slaves. [Its] passage might have been further delayed had not a terrifying Negro insurrection occurred in San Domingo in 1791. This insurrection thoroughly aroused the people of the State to a realization of the potential danger of a large Negro population.

[In] 1795 the legislature placed a further restriction on the importation of slaves by making it unlawful for any person removing to the State, “with intent to settle or otherwise,” from any of the West Indian or Bahama Islands to bring with him any Negroes or people of color above the age of fifteen years, under penalty of 100 [pounds] for each and every slave or person of color brought in.

To many public men of the time the danger from this source seemed imminent; so much so that, in 1798, Governor Samuel Ashe issued a proclamation calling on the people of the State to prevent the landing of slaves or free persons of color. He stated in his proclamation that several shiploads of San Domingan Negroes had set sail, and that one shipload had arrived in Charleston.

Despite precautions, West Indian Negroes found their way into the State. The landing of a number of emancipated Negroes from the island of Guadaloupe at Wilmington in 1803 so alarmed the inhabitants of the town that they memorialized Congress to take action to prevent the introduction into the United States of any persons of that class.”

(Slaveholding in North Carolina, An Economic View, Rosser Howard Taylor, Negro Universities Press, 1969 (original UNC Press, 1926), pp. 23-26)

 

Spending the Money of Future Generations

Robert Hayne of South Carolina followed Jefferson’s admonition that the national debt was not something to be passed on to future generations; it was considered immoral for a president not to pay the debts incurred under their administrations before leaving office. In encouraging an unending public debt, Daniel Webster, on the other hand, Webster was promoting the American System of Whig politician Henry Clay which would give the government an endless supply of money with which to buy influence and power.

Bernhard Thuersam, www.circa1865.org

 

Spending the Money of Future Generations

“The gentleman from Massachusetts (Webster), in alluding to a remark of mine that before any disposition could be made of the public lands, the national debt (for which they stand pledged) must be first paid, took occasion to intimate (that Southerners desire to pay the national debt) “arises from a disposition to weaken the ties which bind the people to the Union.”

But, adds he gentleman, “so far as the debt may have an effect in binding the debtors to the country, and thereby serving as a link to hold the States together, he would be glad that it should exist forever.” Surely then, sir, on the gentleman’s own principles, he must be opposed to the payment of the debt.

Sir, let me tell that gentleman that the South repudiates the idea that a pecuniary dependence on the Federal Government is one of the legitimate means of holding the States together. A monied interest in the Government is essentially a base interest . . . it is opposed to all the principles of free government and at war with virtue and patriotism. In a free government, this principle of abject dependence if extended through all the ramifications of society must be fatal to liberty. Already we have made alarming strides in that direction.

The entire class of manufacturers, the holders of stocks with their hundreds of millions in capital, are held to the Government by the strong link of pecuniary interests; millions of people, entire sections of the country, interested, or believing themselves to be so, in the public lands and the public treasure, are bound to the Government by the expectation of pecuniary favors.

If this system is carried on much further, no man can fail to see that every generous motive of attachment to the country will be destroyed, and in its place will spring up those low, groveling, base and selfish feelings which bind men to the footstool of despots by bonds as strong and as enduring as those which attach them to free institutions.”

(The Webster-Hayne Debate on the Nature of the Union, Herman Belz, Editor, Liberty Fund, 2000, pp. 42-43. Speech of Robert Y. Hayne of South Carolina, January 25, 1830)

Unfounded Fears of Slavery Expansion

Lincoln receives insufficient credit for his part in defeating the compromise measures of 1860-61 which would have averted war, whose effects are still felt today. The author below asserts that slavery had reached its natural limits and was “a cumbersome and expensive system [that] could show profits only as long as it could find plenty of rich land to cultivate” and a market that would take the product. He adds that “the free farmers in the North who dreaded its further spread had nothing to fear. Even those who wished [slavery] destroyed had only to wait a little while – perhaps a generation, probably less. It was summarily destroyed at a frightful cost to the whole country and one-third of the nation was impoverished for forty years.”

Bernhard Thuersam, www.circa1865.org

 

Unfounded Fears of Slavery Expansion

“In the forefront of that group of issues which, for more than a decade before the secession of the cotton States, kept the Northern and Southern sections of the United States in irritating controversy and a growing sense of enmity, was the question of whether the federal government should permit and protect the expansion of slavery into the western territories . . . It was upon this particular issue that a new and powerful sectional party appeared in 1854, that the majority of the Secessionists of the cotton States predicated their action in 1860-1861, and it was upon this also that President-elect Lincoln forced the defeat of the compromise measures in the winter of 1860-61.

It seems safe to say that had this question been eliminated or settled amicably, there would have been no secession and no Civil War . . .

Disregarding the stock arguments – constitutional, economic, social and what-not – advanced by either group, let us examine afresh the real problem involved. Would slavery, if legally permitted to do so, have taken possession of the territories or of any considerable portion of them?

The causes of the expansion of slavery westward from the South Atlantic coast are now well-understood. The industrial revolution [in the North and in England] and the opening of world markets had continually increased the consumption and demand for raw cotton, while the abundance of fertile and cheap cotton lands in the Gulf States had steadily lured cotton farmers and planters westward. Where large-scale production was [possible, the enormous demand for a steady supply of labor had made the use of slaves inevitable, for a sufficient supply of free labor was unprocurable on the frontier . . . and slave labor was usually not profitable in growing grain.

This expansion of the institution was in response to economic stimuli . . . [and the] movement would go on as long as far as suitable cotton lands were to be found or as long as there was a reasonable expectation of profit from slave labor, provided, of course, that no political barrier was encountered.

But by 1849-50 . . . and by the time the new Republican party was formed to check the further expansion of slavery, the westward march of the cotton plantation was evidently slowing down. The only possibility of a further westward extension of the cotton belt was in Texas. In that alone was the frontier line of cotton and slavery still advancing . . .

In New Mexico and Arizona, Mexican labor is cheaper than Negro labor, as has always been the case since the acquisition of the region from Mexico. It was well-understood by sensible men, North and South, in 1850 that soil, climate, and native labor would form a perpetual bar to slavery in the vast territory then called New Mexico. [By 1860], ten years after the territory had been thrown open to slavery, showed not a single slave; and this was also true of Colorado and Nevada. Utah, alone of all these territories, was credited with any slaves at all . . . [and] the census of 1860 showed two slaves in Kansas and fifteen in Nebraska.

The Northern anti-slavery men held that a legal sanction of slavery in the territories would result in the extension of the institution and domination of the free North by the slave power; prospective immigrants in particular feared that they would never be able to get homes in this new West. Their fears were groundless; but in their excited state of mind they could see neither the facts clearly nor consider them calmly.

In the cold facts of the situation, there was no longer any basis for excited sectional controversy over slavery extension . . . [but] the public mind had so long been concerned with the debate that it could not see that the issue had ceased to have validity. In the existing state of the popular mind, therefore, there was still abundant opportunity for the politician to work to his own ends, to play upon prejudice and passion and fear.”

(The Natural Limits of Slavery Expansion, Charles W. Ramsdell (1929); The Causes of the Civil War, Kenneth M. Stampp, editor, Prentice-Hall Inc., 1965, pp. 86-91)

 

War Against a Free Trade South

It is clear that the withdrawal of the Southern States in early 1861 was caused by Northern hostility, especially with regard to the South’s political conservatism and domestic institutions. More obvious is that secession did not necessitate war, as the North could have let the South form its more perfect union peaceably. The North waged war for economic reasons and to thwart the free trade policies of the new American Confederacy.

Bernhard Thuersam, www.circa1865.org

 

War Against a Free Trade South

“When the Southern States began to secede after Lincoln’s election, it soon became evident that the great majority of Northerners considered disunion intolerable. Among the reasons, they foresaw disastrous economic consequences; and this explains in part their demand that Lincoln “enforce the laws” in the South. The Boston Herald (November 12, 1860), predicted some of the evils that would result from disunion:

“Should the South succeed in carrying out her designs, she will immediately form commercial alliances with European countries who will readily acquiesce in any arrangement which will help English manufacturing at the expense of New England.

The first move the South would make would impose a heavy tax upon the manufactures of the North, and an export tax upon the cotton used by Northern manufacturers. In this way she would seek to cripple the North. The carrying trade, which is now done by American {Northern] vessels, would be transferred to British ships, which would be a heavy blow aimed at our commerce.

It will also seriously affect our shoe trade and the manufacture of ready-made clothing, while it would derange the monetary affairs of the country.”

Boston Transcript, March 18, 1861:

“It does not require extraordinary sagacity to perceive that trade is perhaps the controlling motive operating to prevent the return of the seceding States to the Union, which they have abandoned. Alleged grievances in regard to slavery were originally the causes for the separation of the cotton States; but the mask has been thrown off, and it is apparent that the people of the principal seceding States are now for commercial independence.

They dream that the centres of traffic can be changed from Northern to Southern ports. The merchants of New Orleans, Charleston and Savannah are possessed with the idea that New York, Boston and Philadelphia may be shorn, in the future, of their mercantile greatness, by a revenue system verging upon free trade. If the Southern Confederation is allowed to carry out a policy by which only a nominal duty is laid upon imports, no doubt the business of the chief Northern cities will be seriously injured thereby.

The difference is so great between the tariff of the Union and that of the Confederated States, that the entire Northwest must find it to their advantage to purchase their imported goods at New Orleans rather than at New York. In addition to this, the manufacturing interest of the country will suffer from the increased importations resulting from the low duties . . . The . . . [government] would be false to all of its obligations, if this state of things were not provided against.”

(The Causes of the Civil War, Kenneth M. Stampp, editor, Prentice-Hall Inc., 1965, pp. 78-80)

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