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To: Restorer
By today's standards, the federal governemtn in 1860 was almost non-existent.
The 14th Congress passed the Tariff Act of 1816 levying a series of 25% duties designed to encourage domestic manufacturing

Without protective duties, which accounted for an estimated three-fourths of textile manufacturing’s value added, half the New England industrial sector would have gone bankrupt, since European technology produced cloth much more cheaply than American mills could.

In fact, the tariff elevated the rate on manufactured goods to about 50% of their value, resulting in significantly greater protection for New England cloth manufacturers

In July 1832, Congress passed legislation that lowered tariff rates somewhat, but retained the high 1828 rates on manufactured cloth and iron. In November, South Carolina’s special Nullification Convention declared the Tariffs of 1832 and 1828 unconstitutional, and forbade collection of customs duties within the state.

A financial panic induced by a reduction in the flow of British capital investment triggered an extended economic depression, lasting from 1837 to 1843. The Whig Party made its greatest political gains campaigning for more active government programs to stimulate the economy along the model of Henry Clay’s American System. This platform included higher tariffs.

In an electoral sweep, the Whigs gained a congressional majority and won the presidency The party platform endorsed revenue tariffs designed to generate significant funds, part of which were to be distributed to the states to pay for internal improvements (roads and canals), another component of the American System.

Eventually Tyler, too, realized the need for funds, and signed a new bill that maintained some tariffs above 20%, while abandoning revenue distribution

1857--Democrats lowered tariffs further. An economic panic hit soon thereafter, precipitating a fall-off in imports in the wake of the recession that followed. Government revenues plummeted by 30%. In response, the nascent Republican Party called for higher tariffs

Huh, guess it was over slavery after all. I mean just because the government revenue dropped by over 30 PERCENT that little fort sitting in the middle of Charleston's bay, where interestingly enough tariffs and duties were also enforced, didn't have anything to do with the 'real' reason at all < /sarcasm>

For the record quotes are found at Tax.org

410 posted on 11/22/2001 5:50:18 PM PST by billbears
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To: billbears
For what it's worth, Henry Clay (KY) and JohnTyler (VA, mentioned in your post, were both southerners. It is misleading to portray the entire history of the tariff issue as one between the North (in favor) and the South (opposed). The issue was fought out over a 40 to 50 year period, with many different alliances and groups forming on each side.

For instance, during most of this period, there was no "North vs. South" alignment, as such. There was a Northeast, a Southeast and an undifferentiated West. Generally speaking, the SE and the West were allied against the NE.

It wasn't until southern politicians began campaigning hard for expansion of slavery into the territories that the West split into northern and southern segments.

It is interesting that many of those who are today most adamantly in favor of restrictions on imports are the same individuals most appalled by the fact that tariffs were used in early America to protect "infant industries."

Protective tariffs first became an issue after the War of 1812, when it became obvious that America was highly dependent on foreign sources for much of its potential war materiel.

412 posted on 11/22/2001 6:11:15 PM PST by Restorer
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