At this time there were 20 Union states, all with stable legislatures and courts. Their commerce was continuing and there was business as usual. In northern ports such as Boston and New York, ships were sailing their regular routes to Europe, and many continued their commerce with Southern ports. Newspapers were printing, banks were lending, legislators were occupied, roads and canals were operating, and the Federal government was operating.
On March 2, the Morrill Tariff was signed into law by outgoing President Buchanan. This tariff raised the taxation rate to 37.5% with a greatly expanded list of covered items. This effectively tripled the taxation rate on imported goods. The law allowed a second additional rate averaging 47% for iron.
Simultaneously news reached the North that the Confederacy was enacting a much lower tariff. This led the New York Herald to say: “The effect of these two tariffs, then, upon our trade with the best, and most reliable part of the country will most disastrously be felt in all the Northern cities. We learn that even now some of the largest houses in the Southern trade in this city, who have not already failed, are preparing to wind up their affairs and abandon business entirely”.
The US Treasury had on deposit $$6,000,000, enough to finance the government for a month and a half. Tariff revenue from the imports of goods purchased with the proceeds of the sales of Southern cotton had ceased. Secretary of the Treasury Salmon Chase increased the national debt to over $80,000,000, and was borrowing more.
On March 11, the Confederacy published its tariff rates. The average tariff rate to be collected on dutiable goods was 13.3%.
A few weeks later, he results of the secession and the impact on trade were reported in the Richmond Dispatch: “The total amount of imports at the port of New York for the week ending on the 18th, was $2,328,479; for the same week in 1860, $5,517,58 . This was a decrease of 57%.
An article in the Charleston Mercury described the early effects of secession on the business interests: “The business men of Charleston are already beginning to reap the advantages of the independent position which the South has taken.
“The results of the last few weeks have demonstrated commercial prosperity. Business of all kinds has increased at an amazing pace; customers are thronging the city from all quarters of the South, and the indications are that Charleston is destined to become the commercial metropolis of the Confederate States.
“In dry goods and fancy goods the operations have been very large, and the purchasers, we are informed, are principally composed of those who used to patronize New York.’
Without Southern states’ cotton and tobacco exports, more than 70% of the Northern import market would cease to exist. Domestic and overseas financiers, having already loaned large amounts to the government at extremely high interest rates for the past 4 years were not likely to continue to lend money to a government that was losing more than seventy percent of its annual revenue due to loss of tax revenue on imports.
A Washington newspaper learned that a meeting of over 100 New York City merchants had placed great emphasis on the tariff issue and that it was destroying trade and legitimate business. The newspaper said that “it is a singular fact that the merchants who, two months ago were fiercely shouting ‘no coercion’ now are for anything rather than inaction.”
That is when Northern businessmen and politicians began to visit Lincoln’s office. By mid-March, President Lincoln had been visited by a number of governors of the Northern and Western States. Among these men were Governor William Sprague of Rhode Island, Governor Oliver Perry Morton of Indiana, Governor John A. Andrew of Massachusetts, Governor Andrew Curtain of Pennsylvania, and Governor Austin Blair of Michigan They offered him money and militia.
3/22/1861 The economic editor of the New York Times said, “At once shut down every Southern port, destroy its commerce, and bring utter ruin on the Confederate States.”
On April 4, the Lincoln government supplied this quote to the press:
“It would be contrary to the spirit of the American Government to use armed force to subjugate the South. If the people of the South want to stay out of the Union, if they desire independence, let them have it.
while giving this order:
HEADQUARTERS OF THE ARMY, Washington, D. C., April 4, 1861.
Lieutenant Colonel HENRY L. SCOTT, A. D. C., New York:
SIR: This letter will be landed to you by Captain G. V. Fox... He is charged by high authority here with the command of an expedition, under cover of certain ships of war, whose object is to re-enforce Fort Sumter.
To embark with Captain Fox you will cause a detachment of recruits, say about two hundred, to be immediately organized at Fort Columbus, with a competent number of officers, arms, ammunition, and subsistence. A large surplus of the latter-indeed, as great as the vessels of the expedition can take-with other necessaries, will be needed for the augmented garrison of Fort Sumter.
Consult Captain Fox and Major Eaton on the subject, and give all necessary orders in my name to fit out the expedition, except that the hiring of vessels will be left to others.
Some fuel must be shipped. Oil, artillery implements, fuses, cordage, slow-march, mechanical levers, and gins, &c., should also be put on board.
Consult, also, if necessary, confidentially, Colonel Tompkins and Major Thornton.
Respectfully, yours,
WINFIELD SCOTT.
Who wrote all of that? It’s very nice but doesn’t refute a single thing that I said (if that was what you were hoping for).
You are cherry picking numbers to distort the overall picture.
In fact, as originally proposed, while Deep South representatives were still in Congress, Morrill would have raised average rates (ad velorum) from about 15% to 22%, which was about average for the years since the infamous 50%+ "Tariff of Abominations" in 1830.
In early 1861, with Confederate state representatives gone, Morrill rates were passed at 26%, somewhat higher than past averages, but still far from a record.
Yes, during the Civil War Morrill rates were raised to near record levels, but that was long after any consideration of competing Confederate rates played a role.