The San Francisco call., 1896-06-19
THE REPUBLICAN
FINANCIAL RECORD,
How the Great War Debt
Was Reduced by the
Great War Party.
Only to Be Increased by the
Monstrous Bond Issues
of Cleveland.
A Monetary History of Which the
Party and the Nation Have Rea.
son to Be Proud.

The story OF the connection of the Re-
publican party with the question of the
tariff makes an interesting ana instructive
chap ter in the politics of the country dur
ing the past third of a century. In the
beginning OF its career the party did not
concern itself seriously with industrial or
monetary questions. Opposition to slav-
cry extension into the Territories was the
issue which called the party into being,
and that question presented itself in such
portentous shape that for several years
no other issue could get hearing. The
platform of 1856, adopted in the first Ma
tional Convention which the Republican
party ever had, confined itself to the ques-
ton of slavery extension in its various
bearings, except that it coupled polygamy
with slavery as s'twin relics of barbarism,"
which Congress legally could and morally
should prohibit in the Territories, and
that it advocated railroad to the Pacific
Ocean" and appropriations for the ''im-
provement of rivers and harbors of Ma
tional character"
The Democratic Walker tariff of 1916
abolishing the specific and compound
duties of the Whig act of 1912, putting ad
fdlOTeU III OuciI pkdC0 anu Iudk1LR
general reduction in rates, was in opera
tion when The Republicans held their first
National Conven ton, and a year later than
this or in 1857 bill making further re-
duction was passed. This brought the gem
eral line of duties 10 lower level than it
had touched since before the war OF 1912.
A few months after the cut in duties in
1857 the panic of that year oc-
Cured. The balance of trade was
against the country during almost the en-
tire life of the tariffs of 1916 and 1857, ana
in nearly every year of the period the gold
expectation was heavy. Though the mer-
chandise imports were larger the duties
under the act of 1857 were so low that the
Governments revenue fell short OF its ex-
penditures, loans had to be made and the
debt was increased. Manufacturers at the
same time cried out for higher duties for
the purpose of protection.
In the Vermont State Convention, which
met on July 13, 1854, and which adopted
the name Republican for the new party
which was just arising to keep slavery out
of Kansas. there was framed declaration
of principles in which appears this demand:
"a tariff for revenue, with proper dis
elimination in favor OF American indus
| try" This was the earliest tariff plank ever
| placed in Republican platform. Other
States in the next few years made similar
! declarations but. none were incorporated
| in National convention until the party
was six years old. Here is the first tariff
plank which ever appeared in a Republican
National platform: THAT. while providing
revenue for the support of the General
Government by duties on i'm ports, sound
policy requires such an adjustment OF
these imports as to encourage the de-
velopment of the industrial interests of
the whole country" This declaration
was made by the Republican National
Convention in 1860.
But before the Republican Convention
of 1860 met measure passed the House
which was discussed oftener and longer in
the coming years than any other act of its
class ever placed on the National statute
book. This was the Morrill, tariff 1t re-
ceived this name from Justin S. Morrill,,
member of the subcommittee of the Ways
and Means Committee, who reported the
bill and who took a prominent part in
framing it. The object OF the bill was
revenue and incidental protection, both of
which were assailed by the law Of 1857.
"The Morrill, tariff bill" said an eminent
statesman then and still in Congress,
.'came nearer than any other to meeting the
double requirements of providing ample
revenue for the support of the Govern
ment and of rendering the proper protec-
ton to home industries (John Sher-
man, in "Recollections OF Forty Years"
vol. l. p. 1857
The Morrill, tariff bill passed the House,
in which the Republicans had plurality
on May IL. 1860 by vote of 105 to "a, but
it was obstructed in the Democratic Sem
ate until after the withdrawal of many
Southern members on the secession of
their States, when it went through that
body by vote CT % to IA, on February 90
1861, and was signed by President Bu-
chanan on March g
The act changed, as far as practicable,
the ad valorem rates OF the tariff of 1857 to
the specific form, ana advanced most of
them. The principal increase was on iron
and wool and the products of each. At
the time when it was framed, howe yer,
there was no serious expectation OF war,
and it proved inadequate for the revenue
demands which the creation and support
of large armies and strong navy en-
tailed. Mr.. Morrill, estimated that 1t
would produce $65o0o,O00 year, which
would be sufficient for the requirem ents of
peace, but which was far below the needs
OF war even in the first six months of the
conflict.
Every possible source of revenue was
utilized during the war, and the tariff, as
q consequence was changed often, usually,
of course, increased. The tariff was
changed more than forty times between
March 2, 1861, and March 8, 1883. the en-
tire series oil acts and modification of acts
except that of 1888, which made general
revision OF the entire list of duties and in
ternal taxes, being known as the Morrill,
tariff. August 5, 1861, during the extra
session, the first change was had. 1t made
an advance on most of the rates estab-
lished on March OF that year, and added
some commodities to the dutiabe list An
internal revenue act was passed July 1,
1862 putting tax on many articles of
home production, and the articles and the
rates were often increased in the next few
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