CHAPTER II

AN OUTBREAK OF PROTECTIONISM

The Civil War wrought many changes in the people of the United States,

and none more amazing than that in their attitude toward money—the

amount they could spend—the methods by which it could be raised. Here

was a people who in 1859 had looked with dismay on a debt of $58,000,000

facing confidently one of $2,800,000,000; a people to whom in 1860

raising an income of $62,000,000 had seemed difficult, actually provided

in 1866 one of $559,000,000; a people to whom direct taxes had always

been abhorrent and who had repudiated high tariffs, submitting patiently

to both as one of the dire necessities of war. The war was over, but the

debt and the extraordinary expenses remained, and to meet them harsh and

sweeping taxation must be continued.

This was plain to everybody, but it was equally plain to those who

studied the balance sheet of the treasury that many things could be done

to equalize and reduce the taxation. The debt itself could be readjusted

to be much less burdensome. As it stood it was made up of some twenty

different kinds of paper;—bonds, treasury notes, certificates of

indebtedness of all kinds due at nearly twenty different dates, and

drawing almost as many different rates of interest. The paper currency

which kept the money market in a constant state of unrest could be

redeemed. Great economies could be made in the administration of the

government. These things done and a careful estimate of essential

expenses computed, nobody had any doubt but that the people would

consent to the taxation required with as little grumbling as human

nature usually meets taxes.

That the revision of the revenue was work for experts, not for

politicians, had been realized before Mr. Lincoln’s death, and in March,

1865, a commission had been appointed to look into the whole subject and

report. The head of this commission was a man who was to wield a big

influence in the country in the next few years, and one to whom we owe

more credit than he has ever received, David A. Wells. Mr. Wells was a

New England man, who had first attracted attention by planning and

constructing in the printing office of the Springfield _Republican_,

where he wrote editorials, the first machine ever made for folding

newspapers. He made money from his invention, and used some of it in

giving himself a scientific training at Harvard as a special pupil of

Louis Agassiz. In 1864 Mr. Wells, who had become interested in economic

problems, wrote a pamphlet, called “Our Burden and Our Strength,” which

attracted general attention, both here and abroad, and led naturally

enough to his choice as one of the revenue commission referred to above.

There were two other members on the commission, but from the beginning

Mr. Wells dominated it, and his first report, made January 1, 1866,

showed in a very clear way what was before the country.

By his calculations the taxes and tariffs then in force ought to yield

in the year ending June 30, 1867, $435,000,000. Now the Secretary of the

Treasury had estimated that we could get along that year on

$284,000,000. Let us say three hundred millions, proposed Mr. Wells, and

then let us set aside fifty millions a year for reducing the debt—that

still leaves $85,000,000 to be taken off the taxes. Where should it be

applied? To the internal taxes or to the custom duties? Mr. Wells knew

the feeling of the people. They hated direct taxation, they preferred

duties on imports, and he worked out a plan for taking the $85,000,000

off the former, but at the same time he called attention to various

inequalities in the tariff which should be corrected. They came mainly

from the lack of equalization between the two systems of taxation. The

duties on imports were supposed to be arranged so as to compensate for

the internal taxation; not infrequently, however, the tariffs were

placed without proper consideration, and grave inequalities had

resulted. These were of two kinds: either the tariff was less than the

taxes, so that the manufacturer could not compete with foreign goods

imported, or it was considerably higher than the taxes, so that he could

put up his prices until they practically prohibited importation, thus

cutting off revenue and heavily burdening the consumer. Certain cases of

the first kind became familiar at the time from the fact that they

touched everybody, and were explained clearly and in detail in Mr.

Wells’s report. There was the matter of book-making. Everything which

went to make a book was _separately_ taxed,—paper, cloth, boards, glue,

thread, gold-leaf, leather, and type,—and when the book was complete it

was taxed 5 per cent on the selling price. It cost 59½ cents to make a

book requiring a pound of paper. The same book could be made in England

and delivered in New York, including duty (the duty on books was 25% on

the value) for 26¼ cents. Little wonder that American book publishers

sent their work abroad to be done or that the boys and girls of the time

were using Webster’s Spelling Books made in England. The umbrella was

another common article over which there was much trouble. Each item

which went into the making of the umbrella—sticks, rods, handles, tips,

bands, tassels, buttons, cover—was produced by a different

establishment, and each paid its own tax. The cover usually was

imported, and silk paid a duty of 60 per cent. The finished parasol paid

a 6 per cent tax. Now the duty on an imported umbrella was 35 per cent

on its value. Naturally umbrellas were imported in quantities and sold

at a price lower than they could be made for at home.

But while there were cases where the tariff did not compensate for the

tax there were more where it had been forced far beyond it. If these

tariffs had increased the revenue, they might, under the circumstances,

have been justified, but they did not do that. They limited importation

and enabled the home manufacturer to put up his prices, and it was he,

not the government, who got the extra money. At the same time it cost

the government a great deal to collect the small sums realized on these

over-protected articles, often more than the sum itself.

If the government could get on with $85,000,000 less than it could

collect, it seemed obvious that it ought to begin cutting down those

internal taxes which were so much too high for the tariffs. It seemed

obvious, too, that unremunerative tariffs ought to be cut off. But no

sooner did the talk of reducing tariffs on any article begin than there

came a loud outburst from many manufacturing centres against any

reduction. The internal taxes must come off at once—that they demanded,

but no tariffs should be lowered. The cry to preserve the tariffs soon

turned in many mouths to one to raise them. Copper (in blocks), which

under the bill of 1864 had had a duty of 2½ cents a pound, now asked for

double that. Iron rails which already were carrying a duty of 70 cents a

hundred pounds and selling in New York for over $80 a ton, while they

cost only about $32 in Wales, asked a higher duty. The salt miners of

Michigan and New York, whose profits at the moment were enormous,

demanded still greater protection. As soon as the House Committee of

Ways and Means got to work on a tariff bill, which was early in 1866, an

army of determined tariff lobbyists poured into Washington, declaring

they must have more protection or they would perish.

That there were grave embarrassments in the business of the country

could not be denied. Five hundred thousand men, young men at that, had

been taken permanently from the ranks of breadwinners by the war—and

those dependent upon them were now the country’s wards. Immigration to

which the government had looked for reënforcements for labor was falling

off. The tremendous demand which a great army makes upon manufactures of

all kinds was at an end. Particularly did the iron mills, the woollen

factories, the railroads, the produce merchants, feel this sudden

cessation of trade. Prices were probably 90 per cent higher than before

the war, although wages were not over 60 per cent higher. But these

embarrassments were the inevitable results of war—as logical as the debt

or the disabled soldier. Somehow the transition from the abnormal

condition of war to the normal one of peace had to be made; somehow for

the artificial demand and cost the natural must be substituted. It meant

economy, curtailment, lower prices, lessened output; hard times, in

short, for a period. There was no class in the country from whom patient

endurance of the difficulties of the situation could be more fairly

asked than the manufacturers. They had for the most part enjoyed four as

fat years as ever fell to the lot of man. It is doubtful indeed if any

industry at any period of the world’s history had reaped so great

rewards in so short a time as that of iron in the Civil War.

The difficulty now was that these manufacturers were not willing to pay

their share of the cost of the war. They demanded higher protection that

they might make their prices higher, and thus ease as much as possible

the necessarily hard transition state. Congress was to do for them what

economy and patience should have done.

As it happened the demands for a higher protection were made on a

Congress under the dictatorship of a man for whom no tariff could ever

be too high—that was Thaddeus Stevens. When the first tariff bill was

presented to the House in June, 1866, by Mr. Morrill, everybody knew

Stevens was near his end, but emaciated, white, and suffering as he was,

his nerve was still superb. Too weak to walk up the Capitol steps, two

stalwart negroes carried him. “Who will carry me when you are dead,

boys?” he said to them one day with a chuckle. The fight between

Congress and President Johnson over Reconstruction had developed, and

Johnson had already singled out Stevens as his chief enemy. He was soon

to begin to ask as he “swung around the circle,” “Why not hang Thad

Stevens?” Johnson was not mistaken in placing the responsibility.

Stevens had always disliked him. “Can’t you find a candidate for

vice-president of the United States without going down to one of those

damned rebel provinces to pick up one?” he had asked Colonel McClure in

1864. His dislike had grown to open opposition, and he was now leading

the Congressional fight with spirit, ability, and bitterness. Yet weak

as he was, and absorbed as he was in the undoing of the sullen suffering

man at the other end of Pennsylvania Avenue, no measure escaped his

dictation, least of all a measure which touched a doctrine so dear to

his heart as the protection of American industry.

The bill was not in before it was evident Stevens was dissatisfied with

it. It was, he declared vehemently, a free-trade measure. As a matter of

fact no bill the United States Congress had seen up to this date had

less consolation for the free-trader in it than the one Mr. Morrill now

introduced. Although just before the bill was reported $75,000,000 had

been taken from the internal revenue taxes, no compensating reduction

had been made in the tariff. Not only did it preserve the average of 47

per cent, which the bill of 1864 imposed, but it increased many duties,

notably those on copper, iron, steel rails, wool and woollen goods,

salt, all articles which touched the mass of consumers. Many purely

protective duties which could yield no revenue were added—such were the

duties proposed on grindstones and on nickel. So inconsistent was the

bill with the former professions of the party, so evident was it that it

was going to make the price of many essential articles higher, that Mr.

Morrill, candid gentleman that he was, apologized rather pathetically

for it. He had hoped, he said in course of debate, that at the close of

the war the tariff had reached its maximum, and that the earliest

business of Congress after taking off internal taxes on manufactures

would be to reduce duties by the full compensating amount. That this

could not be done with safety was due in his mind entirely to the

failure of Congress to redeem the currency. As long as there was

$917,000,000 of paper money in circulation Mr. Morrill thought the

tariff could not be lowered, but ought rather to be raised. His argument

was not particularly clear or convincing, but it was obvious that he

believed what he said, and that he was greatly worried over the

situation.

Mr. Morrill’s doleful apology for raising duties was entirely misplaced

as far as the dominant factor in Congress was concerned. It was not the

higher duties which stirred that body to protest against the bill, it

was the lower; it was not the extravagant increases, it was the moderate

ones; it was not the articles added, it was those omitted. Thus, among

other items in the schedule was one making the duty on Nova Scotia coal

50 cents a ton, although the duty on coal from other points was $1.25 a

ton. This discrimination was, of course, for the sake of New England

manufacturers, who were cut off from using native coal by the freight

charges of the long haul. Again, scrap iron was not protected at all and

shoddy had a duty only _four_ times what it had been formerly! These and

other similar changes in the bill were not fairly before the House when

Stevens broke out in anger at the moderation of the measure. “I look

upon this bill as a free trade bill from beginning to end,” he stormed.

Nova Scotia coal should pay the full tariff of $1.25, and that was not

enough. There was not a word about scrap iron in the bill, shoddy should

pay more. “It is a most extraordinary imposition upon the protective

tariff of the country.” But Stevens was physically too weak to do

justice to his indignation—more than once when he tried to address the

House he sank back into his seat, exclaiming, “I am too exhausted,” but

if he could not defend his doctrine, he had a Pennsylvania colleague who

could, and far more cunningly, with far more knowledge and fairness than

Stevens. This was William D. Kelley of Philadelphia. Kelley at once took

hold of the debate on the bill, his whole weight being thrown in favor

of the highest protection of any article which could be made or grown in

the United States. His knowledge of the articles on which he spoke, and

his eloquence, clearness, and conviction in presentation, were such as

to mark him at once as the probable future leader of the high

protectionists.

But bold, able, and determined as the protectionist sentiment in the

House showed itself, it was not to go unchallenged. A species of

three-cornered fight developed within the party. There was Mr. Morrill

defending while deploring the bill, on the ground that paper currency

made it necessary,—there were the high protectionists led by Mr. Stevens

in spirit and Mr. Kelley in speech, and there was a most interesting

body of moderate protectionists, led by three representatives from Iowa,

John A. Kasson, James F. Wilson, and William B. Allison. These men were

ably seconded by Frederick A. Pike of Maine (“tax-fight-emancipate

Pike”) and Henry Raymond of New York. Ridicule, protest, argument, were

in turn tried by this group. “It is well understood that there are many

very worthy manufacturers of coffee in this country,” Mr. Pike said in

disgust one day; “they make it of chicory, beans, peas, rye, wheat,

dandelion root, and many other things. So there is reason for retaining

a small duty on coffee in order to protect that worthy class of our

manufacturers.”

Mr. Raymond, who was indignant over the increased duty on railroad

iron—a duty which he declared would increase the annual expenses of the

two roads in his state, the Erie and the Central, at least

$2,000,000—exclaimed: “If the bill of 1865 is not sufficient protection,

what in Heaven’s name will be? We were told at the beginning if we

protected this infant industry it would soon stand alone. We have been

doing it for thirty or forty years, and yet every session of Congress

witnesses new demands for increased protection.”

It was Mr. Kasson who did perhaps the most effective service against the

measure. He wished simply “to foster the incipient industries of America

until they were able to take care of themselves without help, in fair

competition with the industries of foreign countries.” To make the

duties so high that foreign competition was removed, was, in Mr.

Kasson’s judgment, to encourage monopoly. This was a bill “to prevent

the diffused blessings of Providence from being enjoyed by the people of

the United States,” he declared. Who were the handful of wool-growers in

the country that 34,000,000 consumers should be taxed to support them?

Mr. Kasson was especially bitter against the higher prices the bill

would undoubtedly make for farmers. “What does this bill do?” he asked.

“It raises the tariff on lumber, which is so necessary to the Western

prairie farmer; on nails, without which he cannot drive his boards on

his house or build his fence; on salt, without which he cannot preserve

his beef and pork. There is hardly a thing he consumes which this bill

forgets to raise the duty upon. Every prominent necessity of life, food,

fuel, shelter, and clothing, is embraced and made more expensive to the

consumer throughout the country. Even on boys’ pocket-knives the duty is

increased about three times—600 per cent—one member of the committee

tells me. And yet it is said this is a tariff for mere protection. Why,

sir, you are protecting the American people until they will not be able

to buy one solitary thing that is protected if this goes on.” It was

unjust to the consumers, and, said Mr. Kasson, “_Consumption represents

millions, capital only thousands._”

The majority of the Western representatives were with him in the feeling

that the bill was unjust to the farmer. “Long John” Wentworth of

Illinois, a Republican of Democratic antecedents, did some sensible,

pointed arguing against the higher duties on the ground that they were

against the very men (the farmers) “who do most of the tax-paying in

peace and most of the fighting in war.” He warned emphatically that not

only was the bill a discrimination, but that it was certain to encourage

interstate combinations—a warning which was repeatedly dropped during

the debate, and to which the tendency to combination in the salt, iron,

and copper industries gave particular force.

When Wentworth and the Westerners found that there was little chance of

defeating the bill they declared that it must be made just all

around—there must be protection for the farmer and they asked for 30 per

cent on cattle, 50 per cent on fruit, more on grain, duties which raised

strong protests from Pennsylvania and other manufacturing centres. This

would take the necessaries of life from the reach of “their poor toiling

millions.” Yes, said the Westerners, but you are taking the necessaries

of labor from _our_ “poor toiling millions.”

That members of the Republican party should dare in his presence to talk

such doctrine was gall and wormwood to Mr. Stevens, and he flung at

them, and at Mr. Kasson particularly, an epithet which in his mouth was

only one degree less opprobrious than that of “slave-holder” and

“rebel”—“free trader,” and he could prove it, for here was Mr. Kasson’s

name on one of the circulars of the Free Trade League. Mr. Kasson did

not deny the charge: “I have the distinguished honor,” he replied, “of

being a councillor-elect to it, and I am giving my counsel to it (the

League), and to all the people of the United States.”

The bill passed the House by a large majority—the high duties on farm

products which the Westerners asked tacked to it. It was evident that

Congress, as a whole, had broken with the avowed tariff policy of the

past 20 years.

It was the middle of July, 1866, when the bill reached the Senate—too

hot for tariffs, the Senators decided. It was several months indeed

before it came before them. Along with it came a bill prepared by Mr.

Wells, who had been greatly disturbed by the outbreak of high

protectionism. A moderate protectionist himself—he appreciated the

injustice and the dangers in recklessly and generally increasing duties.

He had carefully studied the schedules, and he knew how inevitably

disaster must follow to some interests from the sweeping changes

proposed. He accordingly prepared a bill much more moderate in its

duties, which he claimed would give the necessary revenue and at the

same time protect as far as was just. It met the hearty approval of the

Senate, where there had been much sarcasm spent on the House bill,

principally by the Republicans themselves. “The idea has seemed to

prevail of late,” said Mr. Fessenden, “that if anybody choose to start a

new manufacture by way of experiment, thinking he can succeed in it, the

duty of this country, whatever the effect on commerce, or whatever the

taxation on individuals, is to place duties which will prevent the

importation of that article if it interferes with the manufacture

started.... Is it worth while,” he asked, “to prohibit the importation

of all articles and end our relations with foreign countries?”

Mr. Wells’s bill was made an amendment to the revised House bill, and

sent back. Mr. Morrill advised its acceptance, and promptly. The time

had come when, in his opinion, it was “reasonable to have an

unreasonable tariff.” But there were few of the members, particularly of

the Western members, who agreed with Mr. Morrill. The bitter feeling

that the East was legislating for itself to the injury of the farmer

broke out hotly. A genuine struggle of sections followed, to the disgust

and alarm of Stevens, who knew that if the Westerners could not or would

not accept the “home market” argument, high protection was a lost cause.

That his own side should imperil the bill was particularly trying to

him. “If the gentlemen who are in favor of a tariff bill hold their

tongues and vote,” he snarled, “letting the other side do the talking,

they may get a tariff, but they never will if they keep up their

debate.” But they would not hold their tongues, and they did not get the

bill. In the general dissatisfaction it failed. But high protection did

not end with it. The failure to pass the bill was the signal for a move

of far-reaching consequences.

The morning after the House dropped the bill Mr. John Sherman asked the

Senate to consider a measure for raising revenue by putting up the

duties on wool and woollen goods. There was a general outcry. Where did

such a bill come from—who had ever heard of it—how could Mr. Sherman

expect a measure plainly in the interest of a single industry to be

properly considered, when Congress was to expire “day after to-morrow,”

and more and more of the same kind, including some caustic remarks about

the influence a private industry must have to force such a measure

before the Senate at such a time.

As a matter of fact the bill now so suddenly sprung on the Senate had

been lying in wait for some seven months for just such a contingency as

the failure of the tariff bill—a fine example of business foresight!

This was its history: In July, 1866, when the Senate postponed taking up

the tariff Judge Bingham of Ohio had brought into the House a bill

providing for higher duties on wool and woollens. It was evidently

framed to take care of the wool-growers of his state. Certain woollen

manufacturers, who had known nothing of his intention, saw the danger of

the bill antagonizing both Congress and those manufacturers who were

advocating free wool, and persuaded Judge Bingham to allow it to be

sidetracked until the fate of the general tariff was decided. This was

done, the bill being quietly passed on to the Senate, where nobody but

Mr. Sherman seems to have known or remembered anything about it. When

the tariff bill dropped, the wool interests immediately asked that their

special measure be presented, and Mr. Sherman agreed. Part of the dismay

that the Senate showed at the presentation of the measure was no doubt

due to its familiarity with the solid organization and effective

lobbying of the wool manufacturing interests of that day as well as with

their reputation for unsavory lobbying in the past. It was not yet

forgotten how in the forties and fifties the wool interests had combined

with the Pennsylvania iron men to force Western representatives, who at

that time were all working for land grants for railroads, to vote for

their tariffs. The scandal of 1857 in the fight for free raw wool was

not yet forgotten. The charge of corruption at that time had even forced

a Congressional investigation in which it was shown that one Boston wool

firm had spent some $87,000 of its own money besides some thousands of

other people’s. These sums they charged frankly on their books “to

expenses in securing the passage of the tariff of 1857.” The

investigation showed that the agent of the manufacturers confiscated

most of the money intrusted to him; that none of it, as far as shown,

ever reached a Congressman, though a considerable sum did go to editors

and “influential persons”—such was $5000 to Mr. Thurlow Weed, for

collecting statistics and using arguments!

The insistent demands of the wool men, for years, had been such, that

even good Mr. Morrill had grown tired of them. “Their evils somehow

never disappear,” he said, querulously, when he presented his bill in

’66, and he went on then to say that never since he had been in Congress

had so large a number of petitions for help been received as had been

coming from the wool interests East and West. The wool men, as a matter

of fact, were organized then as probably no interest in the country had

ever been before. The chief organization was the National Association of

Wool Manufacturers, having at its head as able a lobbyist and promoter

as the country has ever produced—this was John L. Hayes—a New

Englander—a graduate of Dartmouth and of the Harvard Law School, a man

of wide and varied experience. He had been counsel for Canada when the

reciprocity treaty of 1854 was framed. He had founded iron works in

Maine and promoted a railroad in Mexico. He had been in politics. He had

held office in Washington. He was a natural scientist of no mean order—a

man versatile, knowing, engaging, and energetic. Mr. Hayes took charge

of the interests of the wool manufactures in 1865, and he carried on a

splendid campaign for higher tariffs. The only hitch in it had been the

necessity of combining with the wool-growers. The decline in the price

of wool after the war had lead the latter to conceive the idea that if

all foreign wool could be shut out of the country, the domestic grower

would be able to monopolize the market—at his own price. To accomplish

this they had organized to fight for a duty which they meant should be

prohibitive. The disadvantage at which the manufacturer would find

himself, should such a measure pass, was obvious, but to fight for free

wool was to antagonize a group of unusual political power. Ohio was the

chief centre of this group, but it could count on the support of New

York, Pennsylvania, and Michigan. Mr. Hayes realized that if the wool

manufacturers should succeed in keeping their raw material free, the

wool-growers in retaliation might force low duties on woollens. It

seemed to him and to the association he directed better policy to work

with rather than against their opponents, and largely through his

influence the two conflicting interests were brought together at a

convention held in Syracuse, New York, early in 1866. There was an

attempt to convince the sheep men that free raw wool would benefit them

more than any tariff, but they refused the argument. They must have real

protection. The two interests succeeded finally in working out an

agreement which satisfied each. The basis of this agreement was, as

afterwards stated by Commissioner Wells, “that the duty on raw or

unwashed wools and hair, other than wools adapted for carpets, should be

fixed at rates varying from ten to twelve cents per pound, and from ten

to eleven per cent ad valorem. In order, then, to compensate the

manufacturer for such a prospective enhancement of the price of his raw

material, it was agreed that, in consideration of the fact that _four_

pounds of the cheapest imported wool (mestiza), paying an aggregate duty

of forty-six cents, were _sometimes_ employed in the fabrication of a

pound of finished cloth, the duty on cloth should be fifty cents per

pound, and on other fabrics of wool of varying weight a duty in like

proportion. In order, next, to give the manufacturer protection against

his foreign competitors, 25 per cent ad valorem was added; and in order

to further compensate for the payment of an internal revenue tax of 6

per cent, _which tax was repealed in the succeeding year_, 10 per cent

more was added, thus making the aggregate duty on shawls, cloths, and

woollen goods generally, fifty cents per pound and thirty-five per cent

ad valorem. It will thus be seen that if the manufacturers, as is often

alleged, did not enter into the arrangement for an increase in duty

through their own seeking, they nevertheless managed to secure full

compensation for all that was granted to the wool-growers; and in

addition to that, through force of subsequent circumstances, an

additional protection in excess of what, according to their showing,

they considered necessary.”

This was the basis of the wool schedule which had been embodied in Mr.

Morrill’s bill and also of the bill which Mr. Sherman had sprung on the

Senate. That the Senate did not like the wool bill was evident. On all

sides there was strenuous opposition to protecting one industry and not

another, and yet the bill went through. It is worth nothing in view of

the support of the scandalous wool schedule of 1909 by both the Senators

from Massachusetts, that both Senators Summer and Wilson of

Massachusetts voted against the wool bill of 1867 and that Senators

Morrill and Fessenden absented themselves. A few hours before the end of

the session the wool bill was received by the House and passed. But its

fate was by no means decided. It still must have the President’s

signature, and the President was Andrew Johnson. Johnson was in poor

temper to favor any measure sanctioned by “Thad Stevens and his gang.”

He had just vetoed one of Stevens’s pet measures, and it was very likely

he would veto any bill favoring a special interest, for his traditions

and sympathies were all with a liberal commercial policy. Mr. Hayes knew

this, and he and his friends collected outside the door of the Capitol

chamber, where, as the custom is, the President signs bills on the last

night of a session. Late in the evening it was rumored that the bill

would be vetoed. Hayes hurriedly summoned aid,—Bingham of Ohio, the

framer of the bill, the Secretary of the Treasury, and the

Attorney-General. What pressure this force brought to bear on Mr.

Johnson is unknown, but at a minute before twelve, according to Mr.

Hayes’s story, the President put his name to the wool bill. It was a

great triumph for Mr. Hayes. “The wool bill of 1867 and its enactment

into law,” says one of the protectionist organs, “were chiefly due to

his personal influence with leading members of both branches of

Congress.”

The passage of the wool bill proved that an industry, if strongly enough

organized and headed by a sufficiently able and respectable lobbyist,

could secure from the Congress of the United States protective favors

which could not be secured for the whole mass of industries. The lesson

had immediate effect. The next year (1868) Congress was asked to pass a

similar bill, favoring the Lake Superior copper industry. The rich mines

in that section had been in operation for several years, and in the last

two or three years their output had been increasing rapidly. As was

natural, there had been a great amount of speculation in copper mining

stocks. The public had subscribed almost as much to wildcat and bogus

copper schemes in this period as to the same kind of oil schemes.

Probably something like $20,000,000 had been actually invested in the

region, there were forty or fifty thousand persons settled in the

district, and there was a considerable fleet on the Lakes in the

copper-carrying trade. It was the beginning of a great industry. Now for

many years there had been in Maryland, Connecticut, and Massachusetts

copper-smelting works which used ores from Chile and Cuba mixed with

ores from the Eastern states. Since 1864 the Eastern concerns had paid a

duty of 5 per cent on foreign copper ore. The Lake Superior interests

had been suffering for several months from decreased prices, due largely

to a great increase in the world’s copper output. They had asked relief

in 1866, and a higher duty had been accorded them in the bill that

failed. They now concluded, as the wool men had, that if they could not

get what they wanted in one way they would in another, and in July,

1868, brought in a bill asking for a duty equal to about 25 per cent on

copper ore. It was a rate which, if granted, was bound to put the New

England and Baltimore works out of commission, put an end to the

carrying trade with Chile and Cuba, raise the price of copper so that

American-built ships could not get their copper bottoms in our ports,

and drive many industries then using copper to cheaper substitutes, like

galvanized iron, sheet tin, zinc, or lead, and put still others to an

expense which, as they would have no compensating tariffs to protect

them, would greatly cripple them. Excited debate followed the bill

everywhere, especially in the Senate, where Zach Chandler fought for it.

The time had come, he declared, when the manufacturers were not going to

have all the protection; miners and farmers were going to have it now.

There was not an article made in Connecticut, which was opposing this

bill, which was not protected, “not an article from a wooden button to a

brass clock or from carpetings to Jew’s harps.” If you don’t give

protection to us this way (through special bills), we’ll take a

horizontal tariff for our copper and lumber and wheat and wool, and then

if “your clocks will not run, let them stop.” His picture of the

suffering of the miners following the closing of the mines no doubt won

many to the measure. It was because of that, said Mr. Morrill, that he

should vote for it, though he believed it would help speculation in

copper stocks more than the suffering miners of Michigan, and that it

was a blow to ship-building and commerce. Would it not be better,

suggested Mr. Grimes of Iowa, to organize a branch of the Freedman’s

Bureau and send it to Michigan to take care of the miners?

The bill finally passed and by large majorities, and in February, 1869,

went to President Johnson. Whatever the influences which had induced

Johnson to sign a bill which must have been so repugnant to him as the

wool bill, there was little chance that they would have any effect upon

him now. His term was almost over. In a few days he was to yield the

White House to “that little fellow Grant,” as he called him, and go back

to his Tennessee home to hoe potatoes and discuss politics with his

neighbors in his son-in-law’s village store.

He was going out in a sense victorious, for he had not been convicted,

and his arch-enemy Stevens was dead, and yet it is doubtful if the end

of his terrific fight with Congress gave him much happiness, if indeed

anything could give him real happiness. Certainly Johnson suffered

throughout his four years as President as few people at the time

realized. One of his secretaries once said that in the two years he was

with him in the White House he never saw him smile but once. Ill

himself, his beloved wife a bed-ridden invalid, unfitted for

companionship, suspicious of his associates, narrow in mind, bitter and

resentful in heart, there was little reason indeed why Andrew Johnson

should smile. Yet unquestionably he got a grim pleasure from his vetoes,

even out of his impeachment trial. He believed he would be convicted,

and his secretary tells of the satisfaction he got from the idea that

his persecutors would all come to bad ends. He learned Addison’s Cato by

heart, and went about the White House rooms delivering it. He studied

the trial of Charles I of England, and ordered the names of those who

signed the death warrant and the terrible ends to which they all came

tabulated. His secretary says he believes Johnson was not a little

disappointed when he was acquitted. It took from him the bitterest of

the many bitter cuds he incessantly chewed.

Throughout his administration Johnson had fought with little effect the

horde of lobbyists, speculators, land grant agents, and other suppliants

for government aid, whom the war had brought together and Congress had

rather encouraged than discouraged. The bills granting tariffs to

special interests belonged to this category unquestionably, however

respectable their supporters, and it was to be expected that Johnson

would veto the copper bill, and he did, sending with his veto the

following message—not his own, however. The letter was written by Mr.

Wells.

_Feb. 23, 1869._

_To the House of Representatives_: The accompanying bill, entitled

“An Act regulating the duties on imported copper and copper ores,”

is, for the following reasons, returned, without my approval, to the

House of Representatives, in which branch of Congress it originated.

Its immediate effect will be to diminish the public receipts, for

the object of the bill cannot be accomplished without seriously

affecting the importation of copper and copper ores, from which a

considerable revenue is at present derived. While thus impairing the

resources of the government, it imposes an additional tax upon an

already overburdened people, who should not be further impoverished

that monopolies may be fostered and corporations enriched.

It is represented, and the declaration seems to be sustained by

evidence, that the duties for which this bill provides are nearly or

quite sufficient to prohibit the importation of certain foreign ores

of copper. Its enactments, therefore, will prove detrimental to the

shipping interests of the nation, and at the same time destroy the

business, for many years successively established, of smelting home

ores in connection with a smaller amount of the imported articles.

This business, it is credibly asserted, has heretofore yielded the

larger share of the copper production of the country, and thus the

industry which this legislation is designed to encourage is actually

less than that which will be destroyed by the passage of the bill.

It seems also to be evident that the effect of this measure will be

to enhance by 70 per cent the cost of blue vitriol—an article

extensively used in dyeing and in the manufacture of printed and

colored cloths. To produce such an augmentation in the price of this

commodity will be to discriminate against other great branches of

domestic industry, and by increasing their cost expose them most

unfairly to the effects of foreign competition. Legislation can be

neither wise nor just which seeks the welfare of a single interest

at the expense and to the injury of many and varied interests at

least equally important and equally deserving the consideration of

Congress.

The enactment of such a law is urged as necessary for the relief of

certain mining interests upon Lake Superior, which, it is alleged,

are in a greatly depressed condition, and can only be sustained by

an enhancement of the price of copper. If this result should follow

the passage of the bill, a tax for the exclusive benefit of a single

class would be imposed upon the consumers of copper throughout the

entire country not warranted by any need of the government, and the

avails of which would not in any degree find their way into the

treasury of the nation. If the miners of Lake Superior are in a

condition of want, it cannot be justly affirmed that the government

should extend charity to them in preference to those of its citizens

who in other portions of the country suffer in like manner from

destitution. Least of all should endeavor to aid them be based upon

a method so uncertain and indirect as that contemplated by the bill,

and which, moreover, proposes to continue the exercise of its

benefactions through an indefinite period of years. It is, besides,

reasonable to hope that positive suffering from want, if it really

exists, will prove but temporary in a region where agricultural

labor is so much in demand and so well compensated. A careful

examination of the subject appears to show that the present low

price of copper, which alone has induced any depression the mining

interests of Lake Superior may have recently experienced, is due to

causes which it is wholly unpolitic, if not impracticable, to

contravene by legislation. These causes are in the main an increase

in the general supply of copper, owing to the discovery and working

of remarkably productive mines and to a coincident restriction in

the consumption and use of copper by the substitution of other and

cheaper metals for industrial purposes.

Although providing for an increase of duties, the proposed law does

not even come within the range of protection in the fair acceptance

of the term. It does not look to the fostering of a young and feeble

interest, with a view to the ultimate attainment of strength and the

capacity of self-support. It appears to assume that the present

inability for successful production is inherent and permanent, and

is more likely to increase than to be gradually overcome; yet in

spite of this it proposes by the exercise of the law-making power to

sustain that interest and to impose it in hopeless perpetuity as a

tax upon the competent and beneficent industries of the country.

The true method for the mining interests of Lake Superior to obtain

relief, if relief is needed, is to endeavor to make their great

natural resources fully available by reducing the cost of

production. Special or class legislation cannot remedy the evils

which this bill is designed to meet. They can only be overcome by

laws which will effect a wise, honest, and economical administration

of the government, a reestablishment of the special standard of

values and an early adjustment of our system of state, municipal,

and national taxation (especially the latter) upon the fundamental

principle that all taxes, whether collected under the internal

revenue or under a tariff, shall interfere as little as possible

with the productive energies of the people.

The bill is therefore returned, in the belief that the true interest

of the government and of the people require it should not become a

law.

ANDREW JOHNSON.

Of course Congress passed the bill over Johnson’s veto. Mr. Pike of

Maine, who regarded the bill as “class legislation of the worst kind,”

and knew the feeling that one of the President’s vetoes inspired, begged

his colleagues “to vote on the measure and not on Andrew Johnson,” but

no remonstrance or argument had any effect. The bill was passed over the

veto by a large majority.

It was again demonstrated that any private interest which could secure

the backing of a powerful Senator or Representative like Sherman of

Ohio, Chandler of Michigan, Kelley of Pennsylvania, could obtain what it

wanted from the Congress of the United States, though that favor might

raise prices to consumers without giving them compensation in other

directions, might destroy established industries, and injure an

established commerce.

The demonstration was not lost. By 1870 the tariff was a conglomeration

of special favors. The duties were not for revenue—many of them, like

copper, cut down the revenue. They had no relation any longer to the

excise, for while that had been steadily decreased the promise to

decrease the tariff at the same time had been broken. The duties had no

relation to each other; that is, the cost of manufacturing an article

might be materially increased by the duty on copper or iron or soda ash,

but it received no compensating help—not until it had organized a lobby

and laid siege to Congress.

These unjust and unscientific duties had not been laid without protest.

Men like Morrill, Garfield, Fessenden, Allison, Kasson, Raymond, and

Sumner had warned against the outbreak. “It smells of monopoly,” they

said again and again, and yet most of them when it came to the test

voted with their party. Many of the ablest Republican newspapers,

especially those in the West, harangued incessantly against the

unfairness of the legislation. But remonstrance, even an attempt at

discussion, only aroused the angry cry of “free-trader” from the

dominant faction in Congress. “It has become impossible,” said Mr.

Wells, in his report of December, 1869, for one “to suggest any

reduction or modification whatever looking to the abatement of prices

artificially maintained in the interest of special industries without

being immoderately assailed with accusations of corrupt and unpatriotic

motives.”

The tariff legislation was but a part of the deplorable and general

attempt which followed the war to make Congress do for the individual

what it was his business to do for himself. Men seemed to believe that

their futures depended on legislation—to have forgotten or never

realized that legislation can do nothing more than distribute wealth—it

cannot produce it, and that the only way you can get money to legislate

into the pocket of one individual is by taking it out of the pocket of

another. Washington had come to be filled with as fine a band of

plunderers as ever besieged a National Congress: tax swindlers,

smugglers, speculators in land grants, railroad lobbyists, agents of

ship companies, mingled with the representatives of industries seeking

protection, until it seemed as if Congress was little more than a Relief

Bureau. At one time in 1869 there were 41 railroads or would-be

railroads seeking aid in the House, and 37 in the Senate. What was to be

the effect of this outbreak of protectionism? Many sober people asked

themselves the question in dismay. But at the moment everybody was

looking to Grant. The new President would certainly help the

situation—bring back Congress and the party to candid discussion,

institute economies, clear Washington of the self-seekers.

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