LYCOS RETRIEVER
Tariff of 1828: United States
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In 1816 Calhoun delivered in favor of a protective tariff a speech that was ever after held up by his opponents as evidence of his inconsistency in the tariff controversy. The embargo and the war had crippled American commerce, but had stimulated manufactures. With the end of the Napoleonic wars in Europe the industries of the old world revived, and Americans began to feel their competition. In the consequent distress in the new industrial centers there arose a cry for protection. Calhoun, believing that there was a natural tendency in the United States towards the development of manufactures, supported the Tariff Bill of 1816, which laid on certain foreign commodities duties higher than were necessary for the purposes of revenue. He believed that the South would share in the general industrial development, not having perceived as yet that slavery was an insuperable obstacle.
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The Dingley Tariff of 1897 restored levels close to those of the McKinley tariff. At the start of the twentieth century, Republicans second-guessed the usefulness of high tariffs. Reformers in the GOP argued that high tariffs aided trusts. In one of his first actions as president, William H. Taft called a special session of Congress to lower the tariff. This action pleased farmers and reformers in the Old North State. Congress responded with the Payne-Aldrich Tariff of 1909.
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The interests of potential core producers were not strongly supported by the Federal state prior to the tariff of 1816, but there had been an intellectual defense of the protection of core activities. Alexander Hamilton, as Secretary of the Treasury in 1791, addressed to Congress an eloquent pre-Listian defense of import substitution entitled " A Report on the Subject of Manufactures". Hamilton's argument was partly a defense against the claim of the Physiocrats that agriculture is inherently more productive than industry. But Hamilton ... argued for protection against core imports on the grounds that the core powers discriminated against U.S. agricultural exports.
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The United States.The tariff history of the United States, like that of European countries, divides itself into two great periods, before and after the year 1860. But it is no more than an accident that this year constitutes the dividing line in both cases, the change in the United States being due to the Civil War, which so profoundly influenced the fiscal, economic and political history of the country in all directions. The period before 1860 may again be divided into three sub-periods, the first extending from 1789 to 1816, the second from 1816 to about 1846, the third from 1846 to 1860.
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The Tariff Act of 1789 imposed the first national source of revenue for the newly formed United States. The new Constitution allowed only the federal government to levy tariffs, so the old system of state rates disappeared. The new law taxed all imports at rates from 5 to 15 percent. These modest rates were primarily designed to generate revenue to pay the national debt and annual expenses of the federal government. In his Report on Manufactures Treasury Secretary Alexander Hamilton proposed a far-reaching scheme to use protective tariffs as a lever for rapid industrialization. His proposals were not adopted.
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As president, Harrison was prepared to let Clay seek congressional passage of an energetic Whig program that included a new tariff and national bank. But Harrison died in April 1841, and his successor, former state-rights Democrat John TYLER of Virginia, vetoed the Whig program and was expelled from the party. The Whigs nominated Clay for president in 1844. The Democrats made the "reannexation of Texas" the campaign's major issue, thereby reviving the dangerous controversy over the extension of slavery. The Whigs, more sharply divided than the Democrats over this matter, suffered a narrow defeat.
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