The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1861-04-02

lures was not only regarded as highly advan-
tageous, but as matter of necessity. Protection
was claimed for this new and growing interest for
the purpose of rendering the country self
supporting; Of giving employment to labor and
capital of increasing the home demand for our
staples, and, finally, of reducing the price of
manufactures by competition. 1t was urged that
it would thus be beneficial to all sections of the
country. The first avowedly protective Tariff was
finally passed in April, 1916. From that time
protection was one Of the cardinal points of the
doctrine known as the American system Prior
to 1916 the South, nnder the lead of Mr.. CALHOUN,
had been the warmest advocate of the encourage
ment of home manufactures-as the true means of
developing the resources of the country and
enabling it to provide for itself in time of war.
The New England States, on the contrary, whose
chief interests lay in their commerce and fisheries
favored free trade and warmly opposed the mea-
sure 1t was principally favored by the Middle
States, who desired protection for lead in sIssour
for hemp in Kentucky, for wool in Ohio and New
York, and for iron in Pennsylvania. By the act
of 1916, the following duties were laid upon
several leading enthusiastically per cent. on
hemp and sail cloth, manufactures of metals, glass
and China ware; 25 per cent. ON manufactures of
wool and cotton; 80 per cent. on leather, paper,
hats and caps 50 per ton on pig iron and $50 per
ton on rolled iron.
In 1918 the duties on copper, cut glass, Russia
sheetings, iron and some few articles were in
creased, and in 1620an attempt was made TO revise
and increase the duties generally, but the bill only
passed the House. In 1924 the question again
came up and much of the time of Congress was
occupied in its discussion. Revenue was regarded.
| by the advocates of an increase of the
rates of duties as mere secondary consideration.
The sole object was to give some relief to the suf-
fering and distress throughout the country that
was then unparalleled, and to create home demand
for labor, provision and material. Mr. CLAY was
the strongest advocate of the bill. 1t was sup
ported by the members from New York, Pennsyl-
vania, Delaware, Ohio and Kentucky. Mr..
WEBSTER opposed the bill strenuously, urging
that the distress was attributable to the collapse
which was necessary consequence of the over
expansion and initiation resulting from the paper
system, and that it was mprudent to stimulate
industry or manufactures any pretence what
ever This view was supported by the members
from Massachusetts,, Maryland, Virginia, North
and South Carolina and Georgia A highly pro-
tectve Tariff was finally passed by a small major
ity in each house. 1t was not carried solely by the
advocates of protection, the absolute necessity of
an increase of the revenue, having induced some
members to vote for it. By this Act a duty of 20
to 80 per cent. was laid on manufactured and
dof IN
and brushes, The rates an iron, paper, glass and
other articles were also increased
From this time the question assumed an en-
tirely new phase. The feeling of the South was
becoming very bitter in regard to it. New Eng
land, with few natural resources, was becoming
rich, the Northern cities were growing, and their
wealth was increasing. The South, on the con-
trary, had remained stationary, and the popula-
ton of some of their cities was decreasing. II
was urged that the North was being enriched, by
this system of protection, at the expense of the
South, and that the continuation of such a sys-
tenn was an act Of oppression and not of Justice
The question was now become not only political
but sectional; and in 1928, when it was again
proposed to increase the rates of duties the dis
cusSions in Congress were very exciting The
New England States had completely changed
front. Mr.. WEBSTER strongly advocated the svs-
tenn which he, but few years before, had SO bit
terly opposed. He contended that, fostered by a
protective tariff, which had now become the estab-
ished system of the country, large portion of
the wealth of the New England States had been
embarked in enterprises which would be ruined
by sudden change Of policy The bill, which had
been introduced especially for the protection of the
woollen interest, was finally passed. The duties
on wool and iron were considerably increased, and
on all other articles were much enhanced The
South was much incensed at what it termed
the oppressive and unjust action of the North;
and the States-rght doctrine of Qualification, from
this time forth, was openly avowed and freely dis
cussed, especially in South Carolina.
No change, up to this time, had been made in the
duties on tea and coffee, since the reduction of the
war duties in 1916. The tax had become so
unpopular in all parts of the country, that a
special act was introduced in Congress in 1880,
and passed, reducing the duty on coffee to two
cents per pound after December 3lst 1880, and to
one cent per pound after December 3lst 1881, at
which time the duty on tea was also to be reduced
to duty of from four to twenty-five cents per
pound, according to its quality. Under the tariff
of 1882 these articles were admitted duty free. and
have remained on the free list ever since, no
Congress having been willing to incur the odium
of taxing these foreign productions which were not
grown at home, and which had become articles
of necessity in the homes of the poorest citizens
With the exception of the alteration of the rates
~ md ohop -, l,. IT,:
made until 1882. The contest which had infamed
all sections of the country and which had been
made one of the chief planks of party platform,
was not, however, permitted to sleep longer than
this. During the Presidency of General JACK
son, who was himself then strong advocate of
protection, the subject was brought before Con-
gress and after long and stormy debate, a bill
was finally passed, which, though somewhat less
protective than that of 1928, and the first Tariff
that had placed Tea and Coffee on the free list,
was insufficient to satisfy the South. So indig-
nant were the South Carolinians at what they
| considered the great injustice done them by the
passage of this bill, that they openly asserted the
right of notification, and declared through the
Legislature of their State that duties should not
be collected in any of its ports under this act 1t
was in order to pacify the South, and TO restore
harmony to the UNION, that the Compromise Bill
of 1888, as proposed and advocated by Mr. CLAY
was finally pissed. By it all duties over 20 per
cent. were gradually reduced every two years IN
til 1912, when there was to be further reduction
ofall excess over 20 per cent. which was to be the
highest dutylevied. An additional argument in ia
vor OF this compromise was that the manufacturing
interests would thus be protected during nine
years, during which time they would be fully de-
veloped, and that the revenue system from that
time forth should be the established policy of the
Government.
In 1912, however, up to which period no further
change had been made, the subject was again
revived for the benefit of the manufacturing
States, who were very unwilling to submit any
longer to the provisions of the Compromise
Act of 1888, and who were still more opposed to
the further reduction of duties, which, under that
act, was to take effect this year. A protective
Tariff was accordingly passed by the Wing party,
who were then in power. This was, however,
revised in 1916, when the Democratic party had
the majority in Congress- and the Tariff Act of
fS46 was passed by them, in opposition to the
Wings, as revenue measure. A Tariff for reve-
nue. and not for protection, declared to be the
policy of the country, and it was urged that its
manufactures had been already developed to such
an extraordinary extent that protection was no Ion
ger required. So thoroughly, however, had the
public accustomed itself to exorbitant duties, that
many of the rates of this Tariff, though considera-
hIy IF ;,f