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To: PeaRidge; Grand Old Partisan; Non-Sequitur; Heyworth
[GOP]Why in the world would imports destined for, say Georgia, go overland from Boston rather than be delivered to the perfectly good ports in Georgia?

[Pea] They didn't. They largely went by water.

Regardless of their method of transport South, imports from Europe were unloaded in Northern ports first, stored, then loaded again on smaller transports for delivery to Southern ports. [note: this extra handling was not done for free]

If Southerners really were responsible for so much of the product imported into the United States and by extension the tariffs on them, why weren't the imports shipped directly to them in the South? Seems like ol Pea ducked the question [again].

702 posted on 09/30/2005 5:31:30 PM PDT by mac_truck (Aide toi et dieu l’aidera)
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To: mac_truck; PeaRidge; Grand Old Partisan; Heyworth

One would think that point of entry would depend on where the demand was. If 91% of all imports are consumed by southerners then why weren't those imports routed to Charleston and New Orleans instead of New York and Boston. Economics would dictate that, if nothing else. Millions of bales of cotton were exported from southern ports but very little imported there. Why were all those ships arriving to load up on cotton coming empty? Why weren't they loaded with all those imports for southern consumers?


703 posted on 09/30/2005 5:39:29 PM PDT by Non-Sequitur
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To: mac_truck
Well, thanks for begging the answer why some imports were not shipped directly.

The Warehousing Act of 1854 was passed by Congress. It said:

Sec. 4. And be it further enacted, That all goods, wares, and merchandise, which may be hereafter duly entered for warehousing under bond, and likewise all merchandise [not] now remaining in warehouse under bond, may continue in warehouse, without payment of duties thereupon, for a period of three years from the date of original importation, and my be withdrawn for consumption on due entry and payment of duties and charges, or upon entry for exportation, without the payment of duties, at any time within the period aforesaid; in the latter case, the goods to be subject only to the payment of such storage and charges as may be due thereon: Provided, however, that where the duties shall have been paid upon any goods, wares, or merchandizes entered for consumption, said duties shall not be refunded on exportation of any such goods, wares, or merchandizes, without the limits of the United States: and provided further, That there shall be no abatement of the duties, or allowance made for any injury, damage, deterioration, loss or leakage sustained by any goods, wares, or merchandise, whilst deposited in any public or private bonded warehouse established or recognized by this act.

The Act was signed into law on February 28, 1854. The momentous importance of this was that importers could warehouse their goods for up to three years before paying the tariff.

That meant they could sell their goods to obtain the money needed to pay the tariff fees and then pay it upon removing the sold goods from the warehouse. This offered a vast savings in finance costs to the owner.

Another major advantage to the merchants was that the did not have to carry large sums of cash on hand to pay tariffs immediately after they dropped off their cargoes, which in turn made it easier to ship goods that had no immediate buyer waiting at the docks.

Congress created secure and duty-free enclaves under federal control in order to encourage merchants here and abroad to make use of American ports. It also meant that trading organizations could better deal with market fluctuations by withholding goods for sale until conditions improved.

New York became the warehousing center of the country because it had readily convertible facilities. Businessmen shipped across the Atlantic to New York, warehoused for up to three years, and then shipped out of New York warehouses up the coast and inland to all over the U.S.

With this act, Northern merchants sealed their dominance over the cotton trade.
771 posted on 10/03/2005 1:55:33 PM PDT by PeaRidge
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