CHAPTER III

THE WAR TARIFFS CONTINUED

Whatever hope moderate protectionists in Congress may have had that the

new President would be influenced by their arguments in favor of tariff

reform, was soon scattered. General Grant was of uncertain political

antecedents. It is doubtful if he ever had any particular interest in

the tariff question, and it is certain that he did not at that moment

consider it a question for his administration to meddle with. In his

first message he advised postponement of revision and against the

renewal of the reciprocity treaty between the British Provinces and the

United States. The one financial duty which he saw at his inauguration

was the resumption of specie payment, and on that his voice was firm.

But even more important than the attitude of the new President on the

tariff was the attitude of the new leader of the House. Who that would

be was still uncertain. Thaddeus Stevens, who for fully eight years had

driven the House like a flock of sheep, had died in August, 1868. There

is no doubt that a sigh of relief went up from all the younger element

in Congress. “The death of Thaddeus Stevens is the emancipation of the

Republicans. He kept the party under his heel,” said James G. Blaine one

day soon after, as he walked in the rotunda of the Capitol with a

friend. “Whom have you got for leaders?” asked the friend. “There are

three young men coming forward,” Blaine replied. “Allison will be heard

from, so will James A. Garfield,” and then he paused. “Who is the

third?” “I don’t see the third,” Blaine replied, gazing up into the

dome. The third appeared a little later when Mr. Blaine was elected

Speaker of the Forty-first Congress.

Blaine’s attitude on the tariff was well known. He believed in high

protection, but he was a politician before he was an advocate, and could

be depended upon to give full hearing to anybody in his party who could

muster votes. That he did not consider the tariff reformers strong

enough to receive much consideration on the Ways and Means Committee was

shown by his appointment of the chairman—Robert C. Schenck of Ohio.

General Schenck’s tariff position had been well characterized by himself

when the bill of 1866 was up. “Sitting here a friend of protective

tariff for eight years,” he said, “_I have voted aye or nay as those who

got up the tariff bills have told me._” “But,” he went on to say, “we

begin to find something like fair play is proper in these things: We

claim that what we do and can produce shall have the same protection

which is given to the industry of the country, applied to the business

of manufacturers.” And henceforth Mr. Schenck worked for duties for the

farmer, for anybody in fact that asked one. It is clear that the House

thus organized could be depended upon to support the doctrine of high

protection.

The vitality of the opposition within the party made itself evident,

however, almost at once. Republican district conventions, particularly

in the West, showed themselves restive, and at Mansfield, Ohio, in June,

1869, General Roeliff Brinkerhoff actually succeeded in getting into a

Republican platform the following resolution:

“_Resolved_, That we are opposed to all class legislation,

government subsidies and grinding monopolies of every kind, and,

therefore, we heartily favor a revision of the present oppressive

tariff, so as to adjust it purely to a revenue standard.”

The way the press took up General Brinkerhoff’s resolution showed how

popular his theory was. Murat Halstead published in full the speech the

General had made in presenting the resolution—and it was copied and

commented on all over the country. The Free Trade League of New York

City, a very energetic organization, sent for the General, and with him

planned a lecture campaign. This plan was carried out; General

Brinkerhoff and Professor Arthur L. Perry, of Williams College, the

author of a book generally used at the time, “Elements of Political

Economy,” spending much of the fall and winter in discussing the need of

tariff reform. At the same time a group of strong Republican newspapers,

including the Portland _Advertiser_, the St. Louis _Democrat_, the

Pittsburg _Commercial_, the Cincinnati _Gazette_, and the Chicago

_Tribune_, one of the very ablest papers in the country, turned their

batteries on the tariff. The last-named led in the campaign and led

well. The _Tribune_ was edited, at that time, by Horace White, and under

his direction had attracted general attention and respect for its sound

and authoritative economic discussion. Mr. White was a zealous student

of economics, and he poured into the _Tribune_ all the results of his

careful work.

The chief opponents of Perry and Brinkerhoff and White in the

discussion, were Horace Greeley and Henry C. Carey. Greeley was an

extremist. “If I had my way—if I were king of this country,” he told

Garfield once, “I would put a duty of $100 a ton on pig-iron and a

proportionate duty on everything else that can be produced in America.

The result would be that our people would be obliged to supply their own

wants, manufactures would spring up, competition would finally reduce

prices, and we should live wholly within ourselves.” And to prove the

wisdom of this belief he began the publication in the New York _Tribune_

of a series of Essays on Political Economy.

At the same time Henry Carey threw himself into the debate, writing a

long series of letters to public men. Carey was at this time over 75

years old—and a more fierce and dogmatic championship of a cause could

not be conceived than his of high protection and of paper money.

Originally a free-trader Carey had early concluded that society was too

undeveloped to practise it, and that a long period of protection must

precede. His views on social and economic subjects he had elaborated in

many volumes, the first of which had been published in 1835. The chief

of his works are his “Principles of Political Economy” and his

“Principles of Social Science.” Both of these have been translated into

a half dozen European languages, and they certainly must be reckoned

with largely in tracing the influences which have made for protection in

our time. Carey in spite of all his hard labor saw the people recede

from his views in 1846, and the return to protection in 1860 had given

him unbounded joy. He wrote Morrill frequent letters of counsel and

instruction when he was at work on the bill of 1861, urging him always

to more arbitrary action than his just and reasonable mind relished.

“Nothing less than a dictator is required for making a really good

tariff,” Carey once said to him. So convinced was he of his position, so

sure that he had solved finally the economic problem that any discussion

or criticism spurred him to the most intolerant opposition. After

Richard Cobden’s death in 1865, Carey said in a public gathering in

Philadelphia that he regarded it as one of those instances of special

providence for which the United States had especial reason to be

thankful; for, said Carey, it was the intention of Mr. Cobden if he had

lived to have again visited the United States; if he had done so he

might have lectured, and so have done great harm to the cause of

protection.

David Wells was a particular abomination to Carey. His reports pointing

out the unjust discrimination caused by certain tariffs, and the fact

that wages were not increasing in the ratio of expenses Carey charged to

be untrue—juggling of figures paid for with “British gold.” One of his

pamphlets answering Wells he headed with this quotation from the New

Testament: _Then one of the twelve called Judas Iscariot went unto the

chief priests and said unto them “what will ye give me, and I will

deliver him unto you?” And they covenanted with him for thirty pieces of

silver and from that time he sought opportunity to betray him ... and

forthwith he came to Jesus and said “Hail Master,” and kissed him._

As a matter of fact Wells was doing serious injury to the schedules then

in force by pointing out what they were and were not doing. For instance

there was the wool bill of 1867. It had been in operation for nearly two

years, and according to Mr. Wells wool was in a more depressed state

than before its passage. His summary of conditions was startling:

1st. Wool to the agriculturalist at a lower price in gold than has

almost ever before been experienced.

2d. A decrease in the number of sheep in the United States, estimated by

the Commissioner of Agriculture at four millions for the single year of

1868, while other authorities place the total decrease as high as 25 per

cent since the passage of the wool tariff.

3d. A condition of the woollen manufacture characterized by a greater

depression than that of any other branch of industry in the country,

with the exception of ship-building; small profit accruing to a few,

heavy losses to the many, with numerous and constantly recurring

failures.

4th. An increase in the importations of foreign fabrics of wool; the

imports of the fiscal year 1868 being returned at $32,458,884, and for

1869 at $34,620,943.

5th. Encouragement of smuggling and its apparent reduction to a system.

“In short,” concluded Mr. Wells after a full discussion of these points,

“what is now needed to restore prosperity to the woollen industry, is a

removal of all duties on the importation of foreign wools and dyestuffs,

and a general reduction of the duties on manufactured woollen fabrics of

every description to 25 per cent ad valorem. On this basis the most

experienced woollen manufacturers in the country assure the commissioner

that they can at once extend, diversify, and secure prosperity in their

business. On this basis the cost of domestic fabrics will be so far

reduced as to give great relief to the consumer, and lead to an

immediate and largely increased consumption. And on this basis only can

the wool-growers expect any immediate increased demand for his staple

product of merino fleece; while in respect to the combing and the finer

wools it is sufficient to say that the supply of these wools has not for

the last few years increased in proportion to their consumption, and

that the extension of their use in the American industry, which would

inevitably follow a remission of the duties upon their import, would so

far increase their demand as to give to the domestic producer all the

encouragement that would prove necessary.”

Among the many cases which Mr. Wells analyzed in his reports none

excited more interest than that of salt. Salt was so widely diffused in

the United States, and its production in various sections had been so

cheap and simple, that the price before the war was very low. The

efforts of the states where it was found, particularly of New York

State, had always been to keep it abundant and cheap. But so many

persons had gone into the business in that state that there had been at

times over-production and serious price-cutting, and as early as 1860

the New York salt men formed a company to put a stop to this sort of

thing. By a clever manipulation of the State Assembly, which was the

guardian of the salt-wells, they secured a law which permitted them to

prevent the starting of any new salt-works. They then went to work to

get control by buying or leasing all existing works. Succeeding in this

they promptly shut down many of them and began to limit the output. The

next year after the combination was formed came on the war, and the

tariff on salt was raised to 12 cents a bushel (it had been 1½ cents in

1857). A year later it was raised to 18 cents, a duty equivalent to from

100 to 150 per cent of its value. This high rate practically put an end

to foreign competition, and the exigencies of war taking the salt of

Virginia and Louisiana out of the market, the Northern works had things

pretty much their own way. Salt, which had sold at 20 cents a bushel in

1860, was selling five years later at 66 cents, and in 1869 at 48.

The Syracuse company made extraordinary profits under these

circumstances. In 1861, the year after their first combination, 7 per

cent. In 1862 they paid _six_ dividends, one of them 12½ per cent. They

soon issued a stock dividend of 100 per cent, and paid the same large

cash dividends on this. In the first six years after the combination was

formed it paid out $2,000,000 in dividends on a paid up capital of

$160,000, and had a surplus of $600,000 on hand.

In the meantime the Michigan salt-works were growing rapidly. Their

output which in 1860 had been but 4000 barrels became over a half

million in 1864! But the same thing happened there as in Syracuse—too

many companies. Sixty-six were operating there by 1866, and combination

was applied, and the Michigan companies were soon consolidated into two.

But the end of the war loosened the Southern works and competition was

in danger of being restored. The New York and Michigan companies

hastened to prevent such a disaster. They entered into negotiations with

the Ohio River Company to limit the output, and the latter to make

itself firmer leased the Kanawha, Virginia, Salt Springs for $75,000 a

year and shut them down. Simultaneously with this campaign for making

salt scarce at home, the industry began one to make it still dearer, an

agitation for more duty—18 and 24 cents a hundred pounds were not

enough, they wanted 30 and 42 cents, and this in spite of the fact that

the internal revenue tax had been removed from salt. If the copper and

wool men could get special bills through, why not they? There seemed no

good reason to the House of Representatives—and they actually passed the

measure—though the Senate did not concur, for lack of time, and the bill

never became a law.

This interesting combination had not only succeeded through the tariff

in making salt scarce and dear, but they had, as all such combinations

do, given the lie to their claim that they could not produce it at a

cost which would enable them to sell it cheaper, by exporting in 1868

some 500,000 bushels, which they had sold in competition with foreign

salt, and by offering the New England fishermen who were allowed to

import salt without duty, prices as low as those abroad; that is, they

had one price for the land and another for the sea, one for Canada and

another for the United States.

Mr. Wells’s evidence on the salt monopoly was complete—it had made a

necessity of life dear through a tariff much higher than the internal

tax and the higher wage of American labor called for. The greater part

of the extra price the consumers were paying was going not into the

pockets of the laborers, but into those of the operators.

After salt the portion of the reports which attracted the most attention

dealt with the tariff on iron. Pig-iron was still enjoying the

protection of $9.00 a ton, given it in the spring of 1865, and this,

though practically all internal revenue taxes on it had been removed.

Its price had risen from $22.70 a ton in 1860 to an average in 1869 of

$40.61. The cost of producing this iron in the United States, including

interest, repairs, and incidentals, was from $24.00 to $26.00 a ton, and

it could be bought in England at $27.12. Mr. Wells’s conclusion, after

examining all the elements in the problem, was that the cost of pig-iron

to the American consumers was from $8.00 to $10.00 per ton more than was

necessary to pay the American laborer his higher wage, and give the

American manufacturer a fair profit; that is, the iron men were

receiving a bonus of from $8.00 to $10.00 a ton from the country. Of

course, this high price of pig-iron affected the cost of production in

all sorts of industries. The most telling illustration of its effect was

that of ship-building. The year the Civil War broke out the tonnage of

the merchant marine of the United States was 5,539,813. Twice as many

American vessels entered British ports as British entered American

ports. The _American Clipper_ was famous all seas over. We were building

vessels for the foreigners, and everybody was quoting with pride a

remark of John Bright in the House of Commons that the finest vessels

sailing between England and Australia were built in the United States.

Iron vessels were at this time beginning to replace wooden. England had

taken the lead in their building, but we were beginning the industry,

and our success in all related industries made it certain that we should

succeed here. The war, of course, interrupted trade sadly. But the

alarming thing was, that the war over, there was no recovery of the

loss. On the contrary, it increased. In 1869 the tonnage had fallen to

4,246,507. Instead of American vessels filling British ports, British

filled ours. A trade between the United States and Brazil carried on in

1860 in 345 American and 178 foreign vessels was almost exactly

reversed. Shipyards all along the coast were shutting down. Why was it?

The ship-builders did not hesitate to say: “The day of the iron ship has

come, but it cannot be built in America. The ship that costs $88,000 in

Scotland, costs $138,000 here.” It is not the superior cost of labor the

ship-builders contended. The advantage the Scotch and English

ship-builders have in cheap labor is compensated for with us by superior

efficiency and by labor-saving devices. It is the cost of materials that

cripples us. Just as the increased cost of copper, through a high duty,

had put an end to copper bottoming and repairing of wooden ships in

American ports, so the high tariff on iron and lumber was putting an end

to ship-building.

Mr. Wells included many other similar illustrations in his report, but

it was wool, salt, iron, and ship-building which demonstrated his points

most clearly: that tariffs, which were so high that they were

practically prohibitive, as in these cases, could not restore a

depressed industry, they raised prices unnaturally high to the consumer,

gave unnatural profits to the few manufacturers as in the case of

pig-iron, led inevitably to monopolies as in the case of salt, and

destroyed related industries as in the case of ship-building.

The report created a great noise and played a big part in the debate on

the tariff bill, which General Schenck introduced into the House in

February, 1870. That any bill attempted at this juncture should follow

the pledges the leaders had given in ’62 and ’64 to reduce the tariffs

as the internal taxes were reduced, would seem evident. But there was no

proof that General Schenck and his committee had given more than a

passing glance at these pledges. That the tariffs, whose unjust and

dangerous excess had been demonstrated, should be corrected, seemed

evident—but they were either ignored or only partially readjusted. Thus

pig-iron, which undoubtedly would have been amply protected by a duty of

$3.00 a ton, was allowed $7.00. The revenue was reduced, as it was

imperative it should be, by lowering the duties on sugar, tea, and

coffee—a “free breakfast table” being the committee’s slogan. An

animated wrangle followed the introduction of the bill. The leaders on

the extreme wings were William D. Kelley of Pennsylvania for the high

protectionists, and S. S. Cox of New York for the free traders; while

Messrs. Allison of Iowa and Garfield of Ohio led the moderates.

Mr. Kelley was at this time at the height of his power, and a more

passionate and convinced supporter of the doctrine of protection has

never sat in the Congress of the United States. He had not always been a

protectionist. “In 1847,” he wrote once, “I had seen with gratification

the protective tariff of 1842 succeeded by the revenue or free-trade

tariff of 1846. To promote this change I had labored not only with zeal

and industry, but with undoubting faith that experience would prove its

benefits. For ten years all went well, and then came the panic of 1857.”

To Mr. Kelley it was a knockout blow. He seems not to have considered

the natural causes of the disturbance, but to have concluded the trouble

lay entirely in the tariff, and for two years he went through the agony

of a man losing his faith. Then in 1859 he sought Henry C. Carey for

help. His conversion to protection was complete. As he himself said he

came to regard the doctrine as an “exquisite harmony.” Everything which

we could produce or manufacture should be so protected that the

foreigner could not enter the market. By diversifying and expanding our

industries we would draw greater and greater numbers to our country,

thus giving larger and larger markets to our farmers. The manufacturers

were to supply all the tools of the farmers and miners. Encouraged by

prosperity production would multiply, and competition would reduce

prices at home lower than abroad. It was a perfect circle.

There is no doubt that the basis of Kelley’s devotion to protection was

his belief that it was for the interest of the American working classes.

The improvement of their condition was the passion of his life.

Apprenticed as a boy to a Boston printer he had refused to be sent to

college lest it might wean him from his class. He wanted to taste with

them all the experiences of poverty—to know what it cost for a day

laborer to live and rise in America. He had studied law at night, had

sought the society of Channing and Emerson, had become a man of

influence, but his motive had remained unchanged. The misery he saw in

1857 he charged entirely to the free-trade system. He could not rest

until he had found a substitute. He believed he had found it in the

“exquisite harmony” of protection.

Having adopted a formula he believed competent to solve all problems,

Kelley could support no criticism of its operations. Mr. Wells’s

demonstration that high tariffs had not restored wool to its old vigor,

had been the determining factor in building up the salt monopoly, that

the iron men were getting the lion’s share of the duty on iron, that we

could not build ships if we kept the price of materials so much higher

than in other countries, was to him little better than blasphemy. Wells

became his pet abomination—a detestation soon after extended to

Professor Sumner of Yale, a man and an institution existing, he used to

say angrily, for “the stupefaction of the youth of this country!”

In the debate on the Schenck Bill Mr. Kelley’s defence of the high

tariffs was impassioned and angry. Monopoly, what did he care for

monopoly, he cried, when Mr. Allison called his attention to the fact

that a certain iron manufacturer whose scale of wages Kelley was

praising, had, with the only three other of his kind in the country,

agreed upon a list of prices made by adding to the price abroad the duty

and a profit on the cost at home. “I do not care what they agreed to do

if they are thereby enabling workingmen to keep their children at

school, well-fed and comfortably clad, to maintain their seats in church

and to lay something up for old age and a rainy day.”

Kelley’s refusal to consider any argument for lowering duties,

particularly on iron, led to a charge that he was in the pay of the iron

manufacturers. No proof of this accusation was ever offered. The New

York _Nation_, which repeated it in 1872, made the _amende honorable_

soon after, saying that Mr. Kelley and his friends had convinced them

that he had no interest which would justify this charge. Kelley’s case

was different from that of Thaddeus Stevens, who did own an iron

foundry. The cause of the charge was due no doubt to Kelley’s

unwillingness to admit that there could be evils in applying his

favorite doctrine. For corruption _outside_ of the tariff he had a just

indignation—as for the whiskey frauds. He looked with horror on Simon

Cameron; and in 1872, when office-seeking was causing great scandal, he

refused to accept renomination to Congress, except on condition that

hereafter he should not be regarded as a “patronage broker.” His defeat

was generally prophesied, but he kept his word and won.

At the other end of the scale from Kelley was Samuel Sullivan Cox, by

far the most eloquent, witty, and well-informed debater the Democrats

had. Cox was an uncompromising free-trader, and one of the most

interesting figures in Congress. He was still a young man, forty-four at

this time, but an experienced one. A graduate of Brown, he had first

taken part in public life as the editor of the _Statesman_ of Columbus,

Ohio. Here at the very start he earned his sobriquet of “Sunset Cox” by

an editorial, which went all over the country; “A Great Old Sunset,” it

was called. It opened, “What a stormful sunset was that of last night!

How glorious the storm, and how splendid the setting of the sun.”

His popularity sent him to Congress in 1857, where, although a Democrat,

he immediately put himself in opposition to the Buchanan administration

by voting against the Lecompton Constitution. In 1866 he removed to New

York City, which promptly sent him back to Congress as one of its

representatives. The spirit and wit Cox could infuse into a tariff

debate can only be understood by reading the _Congressional Record_. His

irreverent interpretations of extreme protectionism kept poor Mr. Kelley

in a constant tumult. Kelley’s sense of humor, which seems not to have

been strong at any time, was utterly swamped by the serious view he took

of his favorite doctrine, and Cox gibed him unmercifully. “Pig-Iron

Kelley” he called him, and his resolutions “pig-iron resolutions.”

Perhaps his most successful sally at his opponents in this Congress was

his resolution against free sunshine—a resolution adapted from

Bastiat—made when there was a fight on against lowering the duty on

coal:

“_Resolved_, That all windows, skylights, inside and outside

shutters, curtains and blinds shall be permanently closed, as also

all openings, holes, chinks, clefts, and fissures through which the

light and heat of the sun have been allowed to enter houses to the

prejudice and injury of meritorious miners and dealers in gas-coal

to protect domestic industry.”

“For the sun is a ‘foreigner,’” explained Mr. Cox. “He comes from

abroad, and we must shut out the light of the sun in order to gratify

these Pennsylvania gentlemen who have a monopoly of this article of

coal.”

The real fight on the Schenck Bill was not, as already said, between

Republicans and Democrats; it was as it had been in 1866 and 1867, in

the party, between Mr. Kelley and his friends and the moderate

protectionists, led by Allison and Garfield. Almost without exception

the speakers on this middle ground opened by disclaiming that it was a

question of protection or of free trade. It was a question of revenue,

of moderate temporary protection, and of keeping promises made in the

war. And nearly all of them having thus defined their positions attacked

the bill, because it did not summarily cut down the tariffs on salt,

iron, leather, coal, lumber, and other articles, where it could be

conclusively shown that they were working chiefly for the benefit of the

few.

Mr. Allison, who was particularly hard on the excessive duty on iron,

wanted a reduction of at least 20 per cent on all leading articles. He

knew he differed from the majority of the Ways and Means Committee on

this, he said, but—

“It is not a question of political partnership. It is a question of

affecting every interest in this country and every class, and

because of the great interests involved should receive careful

consideration at our hands irrespective of partisanship.... I warn

those who insist so pertinaciously upon a retention of these high

duties upon necessary articles of consumption that they only hasten

the time when a more radical change will be made in our tariff laws.

What manufacturers need most of all is stability in legislation,

avoiding sudden and sweeping changes. The changes which I have

proposed would reduce the revenue only a few million dollars, while

to the consumers of manufactures produced they would reduce the cost

of those products many million dollars. In my judgment such a policy

would revive many industries now languishing, and not interfere with

the great industries already established, and which under any change

we are likely to make will still be largely protected. Our policy

should be so to cheapen manufactured products that we can revive our

export trade, now swept away, because we cannot compete with other

nations in the markets of the world. If we could restore what we

have lost, and in addition greatly enlarge our exportations of

manufactures, we should then have an enlarged home market for our

agricultural products, which would then be exported in a

concentrated form in exchange for other commodities which we do not

now and cannot produce.”

The debate on the bill occupied the House much of the time from the

middle of March until the 6th of June, when it was passed. The Senate

took it up at once, and the debate there followed very much the same

lines as in the House:—protestation that it was not an academic

question—pleas from Mr. Morrill and his friends to remember the war time

pledges—warnings against the “smell of monopoly”—plans for removing the

causes of the decline of ship-building. In short, the Republicans

themselves rehearsed fully and forcibly the injustice in certain tariffs

then in force, and asked the party to correct them. All of the

correction they got was $2.00 a ton off pig-iron. Salt, leather, lumber,

wool, copper, and other articles were not touched. The relief demanded

for the consumer came in the breakfast table. Thus the bill, which the

President signed on July 14, reduced the duties on tea about 40 per

cent; on coffee, 40 per cent; on sugar of the lower grades, 33⅓ per

cent; on clarified sugars, 21-3/7 and 12½ per cent; on spices from 33⅓

to 75 per cent. On brandy the reduction was $3.00 to $2.00 per gallon,

or 33⅓ per cent; on spirits from grain, 20 per cent. The free list was

largely increased, certain important materials for manufacturing, ivory,

India rubber, and rags for paper making, being included in a far greater

number of unimportant items.

Mr. Kelley and his sympathizers had saved the doctrine of high

protection, and they accompanied their victory by a manœuvre which they

evidently hoped would preserve them in the future from the necessity of

considering such troublesome arrays of facts about the effects of

particular tariffs as those forced upon them in the last four years by

Mr. Wells’s reports. They persuaded the President to refuse to continue

the office of special commissioner of revenue, which Mr. Wells had

filled since his appointment by President Lincoln in March, 1865. The

majority of Congress deeply deplored this move, and joined in signing a

letter to him expressing their appreciation of his services. The wise

men of the party realized only too well how they would be crippled

without Mr. Wells. It was a loss which time has only intensified. It is

not too much to say, that if he had continued to study and expound

officially the revenue system for the next twenty years with the same

dispassionate thoroughness and clearness that characterized the five

years’ work he did do, the problem of the equitable distribution of

wealth in this country would be much nearer an intelligent solution than

it is to-day.

The passage of the Schenck Bill and the removal of Mr. Wells only

intensified the sentiment of the tariff reformers. A most interesting

movement had sprung up in that year (1870) in Missouri. It was a new

organization, called the Liberal party, headed by Colonel William M.

Grosvenor, the editor of the St. Louis _Democrat_, Carl Schurz, United

States Senator from Missouri, and Gustavus Finkelnburg, a Representative

from that State. The Liberal Republicans asked for several things which

they felt they were not getting under Grant: general amnesty, revenue

reforms, resumption of specie payment, and civil service reform. They

had put up a ticket in Missouri, and elected it. Sympathy with their

aims was widely diffused, and all over the country Republican

conventions began to put tariff planks into their platforms similar to

theirs, or to the one General Brinkerhoff had slipped into the Ohio

platform in 1869, while party organs, like the Portland (Me.)

_Advertiser_, the Chicago _Tribune_, the St. Louis _Democrat_, redoubled

their efforts. In the fall the Free Trade League again sent out General

Brinkerhoff and Professor Perry on a lecture tour. General Brinkerhoff

made a stir with a lecture, which he called “The Tyrants of Syracuse.”

It was a scientific dissection of the Salt Trust, which surpassed in

completeness and convincingness anything which had been achieved in any

one of the many analyses which had been given in Congress. The

cumulative effect of the agitation began to stir the rulers of Congress,

particularly Mr. Blaine, who was a candidate for re-election as Speaker.

Unless he could make a compromise with the tariff reformers he saw there

was danger of their uniting with the Democrats and thereby defeating

him. He went to Chicago and sought Horace White “for the sole purpose of

talking over the situation.” A little later he asked the four whom he

evidently considered the most influential in the movement to meet him

secretly in New York. The four were William B. Allison, Horace White,

Charles Nordhoff, and General Brinkerhoff. There was a long discussion,

ending in a proposition from Mr. Blaine that if the reformers would

permit him to be re-elected Speaker he would permit them to name the

chairman of the Ways and Means Committee, and give them a majority on it

of their way of thinking. The proposition was accepted, and Mr. Blaine

was asked to appoint Mr. Garfield.

There was no reason to suppose that Mr. Blaine would not keep his

promise, nevertheless the suspicion that he was “slippery” in politics

was not uncommon, and the Free Trade League concluded to send General

Brinkerhoff to Washington to see that the arrangement was carried out.

The new Congress—the Forty-second—opened on March 4, 1871. General

Brinkerhoff had made a careful study of the tariff record of the members

of the new House and felt sure of a majority, but it was resolved to

test the tariff sentiment by a surprise resolution. Bills were prepared

putting coal and salt on the free list, and Eugene Hale of Maine was

asked to introduce them, under the Monday morning rule. Mr. Hale

consented, and Mr. Blaine promised to recognize him. The bills were

introduced suddenly as arranged, brought immediately to vote, and, after

some skirmishing, passed, to the despair of Mr. Kelley, who, as Mr. Cox

said, wailed now like Jeremiah, though in the last session he had talked

like Isaiah. “I was in the majority then,” said Mr. Kelley, ruefully.

Sure of the House, there now remained only to make sure of Mr. Blaine.

As the days went on and the appointments promised were not made, General

Brinkerhoff felt more and more uneasy, but said nothing. Finally one day

as he was on the floor of the House, Mr. Blaine sent a page to him

asking him for an interview:

“He then called someone to the chair,” says General Brinkerhoff in

his Recollections, “and as he went out of the south door I went out

of the north door, and went around and met him. He took me down to

the basement and into a room he called his den. He then locked the

door and went to a cupboard and brought out some refreshments, and

we sat down at a little table.

“After awhile he told me he wanted to talk with me about the Ways

and Means Committee, and to ask my opinion in regard to a cast of a

committee that was in his mind. He took a pencil and a slip of paper

from a drawer and wrote down nine names and then turned it around

for me to read. I saw that he kept his finger on the paper, and that

he did not intend to let me take it away, and so I took a little

time to study its make-up, and get it clearly in my memory. I saw at

a glance that he was not carrying out his agreement, because Dawes

was at the head as chairman, and not Garfield. I saw also as I

looked over the list that a majority of the committee were not

revenue reform men, although it was a combination calculated to

deceive any one not fully posted on individual records.

“That a breach of faith was meditated was evident enough, but just

what to do about it was not so evident, and so I asked questions to

gain time as well as information. I asked him why Dawes instead of

Garfield was at the head. ‘That is what I want to talk about

especially, for I find it will make trouble to give Garfield the

chairmanship, and it seems to me that Dawes is sufficiently in

harmony with you people to be satisfactory, and the very fact that

he is not an extreme man will be an advantage to you in the House.’

He said Garfield had not had sufficient service on the committee to

entitle him to promotion over old members like Kelley and Dawes.

‘Why,’ he said, ‘Kelley would take a fit if I put Garfield ahead of

him.’ ‘Possibly, that may be so,’ I said, ‘but you knew that just as

well when we were in New York as you do now, and I am very sure our

people would not be willing to substitute Dawes for Garfield in any

event, for at heart he is not with us any more than Kelley.’

“The fact was there were only four men on his list who were not

protectionists, and after discussing the matter awhile, he said,

‘This is not a finality by any means, it is simply tentative and I

will make the committee so that it will be satisfactory.’ He

repeated the word ‘tentative’ two or three times, but I made up my

mind at once that a Ways and Means Committee satisfactory to the

revenue reform people would never be made by Mr. Blaine, and so we

parted after an hour’s talk with the understanding that he would see

me again soon.”

That evening General Brinkerhoff met Garfield by appointment. “You are

not to be chairman of the Ways and Means Committee,” he told him. “The

protectionists will be in a majority on it.”

“You are wrong,” Garfield said; “Mr. Blaine has already written me

assuring me of my appointment.”

“Let me see the letter,” said the General. Garfield’s face fell. He had

not the letter. Mr. Blaine had asked that it be returned because life

was uncertain. “You will not be appointed,” General Brinkerhoff

reiterated. Garfield walked the floor for a few minutes, and then

stopping, said: “General Brinkerhoff, if Mr. Blaine does not appoint me

chairman of the Ways and Means Committee, he is the basest of men.” He

was not appointed, but a few days later Mr. Dawes was.

No move could have been made which would have crystallized so

effectually the tariff sentiment of the reformers and sent them so

surely toward the Democrats as this. All over the country signs of

dissatisfaction multiplied. They were only strengthened by other causes

of complaint with the party—the failure to secure civil service reform

and the awful need of it; the treatment of the South, which had led to a

strong movement, headed by Greeley, in favor of general amnesty; the

delay in resuming specie payment. These specific causes were intensified

by the feeling about Grant. He had utterly disappointed the hopes of

those who had looked to him to put an end to the open corruption and

raiding which prevailed in Washington at the time of his election, and

he had become almost the tool of some of the very worst elements in the

party. Dissatisfaction had become abuse, and every evil in the country

was laid at his door, an exaggeration Mr. Cox ridiculed in the next

campaign by declaring, “I lay the horse distemper to Grant. Run me as an

anti-epizoötic candidate at large.”

Between the real issues and the dissatisfaction with Grant there seemed

reason enough for revolt, particularly to the Liberal Republicans of

Missouri, who had succeeded in their bolt; and accordingly in January,

1872, they called a meeting of leading reformers in St. Louis. Here it

was decided to put forth a declaration of principle and call a national

convention in Cincinnati, Ohio, in May, 1872, of all those who felt that

the issues were sufficiently important to justify independent action.

Among contributing causes to this movement was the revolt in the

Republican party, growing out of the impeachment of Andrew Johnson in

1868, and the attempt to read out of the party the seven Republican

Senators who had voted Not Guilty. The continuing proscription of the

“seven traitors” offended all persons who upheld the right of private

judgment and they naturally rebelled against such party tyranny.

The hope of the leaders in the Liberal movement was to organize an

entirely new party and to put forth a platform and candidates which

would secure the support of the Democrats. The time between the St.

Louis and the Cincinnati meetings was used in an energetic canvass of

the country. The result was that a convention of some seven hundred

people met in Cincinnati in May, but it was not seven hundred people

united on issues. While the Missouri Liberals and their friends led in

its organization, and expected to secure a platform and candidates to

their liking, the convention by a series of fine manœuvres was captured,

for the last man in the United States whom the tariff reform element

would have chosen—and that was Horace Greeley! Almost before they knew

what had happened to them, the men active in securing the convention

found themselves with the most devoted high protectionist in the country

on their hands, and a meaningless tariff plank in their platform! A more

ironical ending to a great movement could not be imagined. To be sure,

on one great issue to which the convention was committed, Horace Greeley

had been a leader, and that was amnesty for the South. He had turned the

New York _Tribune’s_ full strength against the policy of revenge and

humiliation, which the Republican party so blindly inaugurated, and he

had suffered their severest punishment in consequence. But in no other

particular was he in harmony with them, and a more unfit man to cope

with the ruling corruption could not be imagined. As the _Nation_ well

said, he was a man not more remarkable for generosity and

kind-heartedness than for the facility with which he could be duped, and

not more remarkable for his hatred of knavery than for the difficulty he

had in telling whether a man was a knave or not.

The tariff reformers left Cincinnati in despair and uncertainty—what

should they do? A meeting was called at the Fifth Avenue Hotel in New

York and the situation discussed. It was a “bad job,” all agreed, but on

one point they could meet, that of amnesty. It was worth making a fight

for. The Democrats would probably endorse Greeley if they stood by the

Cincinnati convention. The meeting wavered and halted until finally late

at night Carl Schurz in a speech, which those who heard it declare to

have been one of the most eloquent he ever made, turned them to Greeley.

The majority decided to waive tariff reform for the time being and join

the movement to beat Grant.

The strength and the respectability of the faction which had seceded

from the Republican party on tariff reform and kindred issues, alarmed

the leaders who had been backing the iron and wool and copper and salt

people in their demands. They appreciated that they must do something

toward reform or the party would suffer still more seriously. All

through the early months of 1872 a struggle went on to get a bill which

should cut down the surplus without antagonizing any politically strong

special interest. It could not be done. Senator Sherman finally said

frankly to the lobbyists who were besieging the committee that it was to

their interest to have a reduction made. “In my deliberate judgment,” he

said, “it is better for the protected industries of the country that

this slight reduction of duties (it was the question of a general 10 per

cent reduction) should be made rather than to invite a contest which

will endanger the whole system.”

After much struggle Mr. Dawes reported a bill in April, which he hoped

Congress could unite on. Mr. Finkelnburg of Missouri spoke for the bill.

It was not what he wanted, he said, but it should be supported, because

it was a step in the right direction:

“Its chief merit,” said Mr. Finkelnburg, “lies in this, that after

six years of peace it is the first bill reported to the House by a

regular standing committee which proposes to make a substantial and

general, though moderate reduction, in the war duties imposed upon

the leading necessaries of life, the staple articles of consumption

used by the people of the United States. It is the first step in the

scaling downward, the inauguration of a policy of reduction, and as

such I bespeak for it the support of all friends of revenue reform.

“It is true the reductions proposed in the bill are very moderate;

so much so that the bill may, with apparent justice, be criticised

for not going far enough. It is not what I would like to see, and

far from my ideas of true revenue reform; but I gave it my support

firstly, because I want to accomplish something practical, and I

felt that if we asked the House to do more it would result in

nothing being done; and secondly, because I recognize a fact which

should govern all legislation of this kind, namely, that changes in

a tariff schedule, which more or less affect business relations and

values throughout a country, ought to be made slowly and gradually,

step by step, leaving to the next year what remains undone in this,

until we arrive at that normal point where the duties may once more

assume a permanent character as they did before the war.”

It was indeed a reasonable bill to the reasonable man, but those

interests which considered only themselves fought fiercely to save what

the urgencies of war had given them. Many a member, it is plain from the

debate, would have willingly supported a more radical lowering of

duties, but he had important constituents goading him to look after

them, and he dared not speak his mind freely. In many cases about the

only argument these gentlemen offered was that they would willingly

enough give up the duty on their coal or salt or lumber if Pennsylvania

would on her iron, Michigan on her copper, Connecticut on her clocks.

There was a pretty general frank admission that the high tariffs were a

bad business, but “if you get it for your constituents you must give it

to me for mine.” It was a phase which gave great joy to Mr. Cox, and he

mocked at it in a speech long remembered:

“Let us be to each other instruments of reciprocal rapine,” said Mr.

Cox. “Michigan steals on copper; Maine on lumber; Pennsylvania on

iron; North Carolina on peanuts; Massachusetts on cotton goods;

Connecticut on hair pins; New Jersey on spool thread; Louisiana on

sugar, and so on. Why not let the gentleman from Maryland steal coal

from them? True, but a comparative few get the benefit, and it comes

out of the body of the people; true, it tends to high prices, but

does not stealing encourage industry? Let us as moralists, if not as

politicians, rewrite the eighth commandment: Thou shalt steal;

because stealing is right when common.

“As I am a Representative of New York, and Onondaga, with the aid of

the foreign solar artisan, evaporates salt, ought I not also to

steal to help Onondaga? Stealing by tariffs, Mr. Chairman, is, as De

Quincey proved of murder, a fine art. If everybody stole from

everybody, is there any reproach to anybody? If everybody is a

burglar, is there any need for anybody to lock up houses?

“How happy we shall be when we can all look each other in the face

here, as now I look into the face of the gentleman from

Massachusetts, clasp hands, and say: God bless you, my brother; you

have stolen from me, and I from you; let us love one another. Then

the little unprotected pigs, who are crowded by the big pigs quietly

eating out of the trough, will squeal no more to be let in, for on

this idea all shall be fed by swallowing each other’s food; and when

all are fed, no one loses and we shall be happy.”

There was another significant feature to the debate, and that was the

way it got on the nerves of Congress. Before the session was over there

was an almost open admission that they did not know nor care much

whether certain tariffs which were causing trouble, were just or not.

For instance, Senator Logan of Illinois was greatly disturbed because

the tariff on printed books was only 25 per cent, and that on the paper

which made them was 31½ per cent. He argued long and earnestly over the

matter, but finally was snapped off summarily by Senator Sherman. “It is

like trying to row a flatboat up the Mississippi River to argue against

the Committee on Finance in the Senate,” wailed poor Mr. Logan. We mean

no disrespect to the gentleman, Mr. Morrill hastened to assure him, but

is it any wonder we are weary of the subject and want to drop it after

hearing delegations and representatives of all the parties in the

business, and after having argued it out twice in committee? “No,” said

Mr. Bayard of Delaware, “it is not; it only shows the folly of

attempting to adjust duties in this way.” And as a matter of fact, the

debate in the spring of 1872 showed, as most tariff debates have, what

probably every candid member of Congress has always admitted after a few

years of experience, that it is impossible for a Congress subject to the

continual political and commercial pressure of private interest to make

a just tariff bill.

The Dawes Bill was signed formally on June 6th by President Grant. As it

stood its most important features were a 10 per cent reduction on

articles manufactured from cotton, wool, iron, paper, glass, and

leather, and an increase of the free list by such articles as hides,

jute, and paper stock, and a reduction on coal, salt, lumber, and

several other articles. All materials to be used in the construction of

vessels built in the United States for the foreign trade were admitted

free. At the same time a bill was passed removing entirely the duty on

tea and coffee.

It had been a hard battle to get the bill through, but it was certainly

a step toward more equable taxation. If the country had remained

prosperous it is probable that in the next Congress the revenue

reformers would have continued the work of equalization and

distribution, but the country did not remain prosperous. The year 1873

saw a panic of wide extent, a panic caused by gigantic speculations in

railways, in land securities, in booming schemes of every kind. Men

spent everything they owned in roseate ventures and then borrowed all

their hopeful neighbors would lend, and this madness followed only seven

years after a war, which had cost the country perhaps 4000 millions of

dollars! It was not a quick, sharp panic with easy recovery. Its shocks

recurred again and again, and the desolation it spread dragged itself

over several years. No time indeed for reform. But not so bad a time for

those who had objected to the lowering of the duties in the bill of

1872. The falling off of revenue due to decreased importation was reason

enough to them to make an effort to replace its provisions. They hurried

on to this more rapidly than they would have done perhaps if in 1874 the

general dissatisfaction with the Grant Administration intensified by the

hard times had not caused the election of a majority of Democrats to the

House. The protectionists, having only a short term of power left them,

hastened to take advantage of it. We must have more revenue, they urged.

The surplus of 1873 and 1874 is but $2,000,000. We shall have nothing

for the sinking funds—we must put more taxes on tobacco and spirits,

more duties on molasses and sugar, and we must restore the 10 per cent

reduction on manufactured goods. It was urged by the tariff reformers

that if revenue was wanted the repeal of the 10 per cent reduction would

help but little—that the restoration of the duty on tea and coffee was

the simplest and fairest—but the protectionists were determined to get

back their 10 per cent, and they did it, though only after a hard fight

and a close vote. And thus it happened that when the Republicans

resigned to the Democrats in 1875, the majority in the House of

Representatives, which they had held for fifteen years, they left behind

them tariff schedules devised for war needs and enacted by them under a

definite pledge of reduction when the war should be over and internal

taxes removed.

The Tariff in Our Times · 第 3 / 13 章