Dallas tariff
Encyclopedia
The United States
passed the Tariff of 1816 and enforced it between 1816 and 1824.
Introduced following a report from Secretary of the Treasury
Alexander J. Dallas
and adopted by the Fourteenth Congress
, the tariff was staunchly supported by Henry Clay
, then Speaker of the House
, who saw the measure as important to support developing American industries. There was significant opposition to the measure led by Daniel Webster
and John Randolph
.
The tariff was important in the Compromise of 1833, which ended a brief Nullification Crisis
during which South Carolina
threatened secession from the United States
.
led to a slight rise of the tariff called the Mediterranean Fund, with the tariff applicable to staple imports ranging from ten to fifteen percent. These tariffs were doubled in order to pay for the War of 1812
. These tariffs were believed to have led to the strengthening of American industry not only in New England
but also in New York
and Pennsylvania
.
. Britain
had developed a large stockpile of iron
and textile
goods. Because this stockpile was so large, the price of British goods soon plummeted in comparison to that of American goods. Consequently, many Americans bought British goods rather than American goods, hurting American manufacturers. James Madison
and Henry Clay devised a plan to help American producers called the American System
. It included a protective tariff more commonly known as the Tariff of 1816, which increased the price of British goods so that American goods could compete with them. The northern United States
were quite pleased by this tariff since the North's economy was increasingly based on manufacturing.
Although most Northerners, like most Southerners, were still farmers (84% for the whole country), the North was increasingly industrial, with 20 percent of its workforce engaged in manufacturing, compared to 8 percent in the South. Many industries and workers in the North competed with British imports and benefited from the tariff. The Southerners, however, were outraged, since they were net consumers of the manufactured goods which now cost more. Further their agricultural exports to Britain might be threatened if Britain retaliated
.
Dallas recommended the retention of the tariff regime in place during the 1812 War in a report published in February 1816 in order to develop American industry in the event of another war with the United Kingdom or other European powers. The proposal was adopted by President Madison and congressional leadership, including Speaker Clay. A House committee recommended the adoption of this tariff predicting that it would only be necessary for a few years until the United States was strong enough to defend itself against foreign powers. The tariff was popular in areas such as Pennsylvania and New York where manufacturing industry was growing rapidly. It was supported widely in those states to defend American manufacturers against competition from British manufacturers. It was also popular in the West, including in Clay's home state of Kentucky
, where those who hoped to develop hemp
and flax
as crops desired new tariffs to support these infant industries
.
The proposal was less popular with New England merchants who were hoping to restore trade with Britain and other European powers and import products from Europe in return for U.S. exports such as cotton
. Daniel Webster represented their viewpoint and he managed to win some concessions about the level of the tariff. It was also less popular in the South as it would increase the costs of production of their export crops notably cotton. It was also opposed by people who saw it as raising the costs of living of the poor. John Randolph in his speech in opposition raised both of these points. "Upon whom bears the duty on coarse woollens and linens and blankets, upon salt and all the necessaries of life? Upon poor men and upon slaveholders." (1) However, the tariff was supported by notable Southern leaders such as President Madison and former president Thomas Jefferson
. Notably, John C. Calhoun
, who would later be a strong opponent of future tariff regimes, supported the Dallas tariff in the Congress. The act was passed in April 1816 with rates of 25 percent against wool
len and cotton goods and a highest rate of 30 percent. Further, no duty on cotton and woollen goods was to be less than six and a quarter cents a yard which would have a regressive impact over time. The measure had support from elected representatives from every state except Delaware
and North Carolina
.
and broke with President John Quincy Adams
over the issue. Calhoun then became Vice President under Andrew Jackson
, who introduced the Tariff of 1832
. This measure reduced the level of tariffs somewhat, but not enough to satisfy Calhoun. He resigned in order to become a Senator for South Carolina
. This prompting the Nullification Crisis, in which South Carolina declared the 1828 and 1832 tariffs "null and void," and began to raise a military force in support of its action. The crisis was averted through the Compromise of 1833 negotiated by Clay where tariff rates were progressively returned to the level of the Dallas tariff by 1842. This averted further threats of nullification
although the debate was a precursor to the arguments over slavery in the future.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
passed the Tariff of 1816 and enforced it between 1816 and 1824.
Introduced following a report from Secretary of the Treasury
United States Secretary of the Treasury
The Secretary of the Treasury of the United States is the head of the United States Department of the Treasury, which is concerned with financial and monetary matters, and, until 2003, also with some issues of national security and defense. This position in the Federal Government of the United...
Alexander J. Dallas
Alexander J. Dallas (statesman)
Alexander James Dallas was an American statesman who served as the U.S. Treasury Secretary under President James Madison....
and adopted by the Fourteenth Congress
14th United States Congress
- Senate :* President: Vacant* President pro tempore: John Gaillard of South Carolina, first elected December 4, 1815- House of Representatives :* Speaker: Henry Clay of Kentucky-Members:This list is arranged by chamber, then by state...
, the tariff was staunchly supported by Henry Clay
Henry Clay
Henry Clay, Sr. , was a lawyer, politician and skilled orator who represented Kentucky separately in both the Senate and in the House of Representatives...
, then Speaker of the House
Speaker of the United States House of Representatives
The Speaker of the United States House of Representatives, or Speaker of the House, is the presiding officer of the United States House of Representatives...
, who saw the measure as important to support developing American industries. There was significant opposition to the measure led by Daniel Webster
Daniel Webster
Daniel Webster was a leading American statesman and senator from Massachusetts during the period leading up to the Civil War. He first rose to regional prominence through his defense of New England shipping interests...
and John Randolph
John Randolph of Roanoke
John Randolph , known as John Randolph of Roanoke, was a planter and a Congressman from Virginia, serving in the House of Representatives , the Senate , and also as Minister to Russia...
.
The tariff was important in the Compromise of 1833, which ended a brief Nullification Crisis
Nullification Crisis
The Nullification Crisis was a sectional crisis during the presidency of Andrew Jackson created by South Carolina's 1832 Ordinance of Nullification. This ordinance declared by the power of the State that the federal Tariff of 1828 and 1832 were unconstitutional and therefore null and void within...
during which South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
threatened secession from the United States
Secession in the United States
Secession in the United States can refer to secession of a state from the United States, secession of part of a state from that state to form a new state, or secession of an area from a city or county....
.
Background
The level of tariffs had been increasing in the United States since the passage of a general administrative tariff act. The First Barbary WarFirst Barbary War
The First Barbary War , also known as the Barbary Coast War or the Tripolitan War, was the first of two wars fought between the United States and the North African Berber Muslim states known collectively as the Barbary States...
led to a slight rise of the tariff called the Mediterranean Fund, with the tariff applicable to staple imports ranging from ten to fifteen percent. These tariffs were doubled in order to pay for the War of 1812
War of 1812
The War of 1812 was a military conflict fought between the forces of the United States of America and those of the British Empire. The Americans declared war in 1812 for several reasons, including trade restrictions because of Britain's ongoing war with France, impressment of American merchant...
. These tariffs were believed to have led to the strengthening of American industry not only in New England
New England
New England is a region in the northeastern corner of the United States consisting of the six states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut...
but also in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
and Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
.
Introduction
The Tariff of 1816 was put in place after the War of 1812War of 1812
The War of 1812 was a military conflict fought between the forces of the United States of America and those of the British Empire. The Americans declared war in 1812 for several reasons, including trade restrictions because of Britain's ongoing war with France, impressment of American merchant...
. Britain
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
had developed a large stockpile of iron
Iron
Iron is a chemical element with the symbol Fe and atomic number 26. It is a metal in the first transition series. It is the most common element forming the planet Earth as a whole, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust...
and textile
Textile
A textile or cloth is a flexible woven material consisting of a network of natural or artificial fibres often referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other material to produce long strands...
goods. Because this stockpile was so large, the price of British goods soon plummeted in comparison to that of American goods. Consequently, many Americans bought British goods rather than American goods, hurting American manufacturers. James Madison
James Madison
James Madison, Jr. was an American statesman and political theorist. He was the fourth President of the United States and is hailed as the “Father of the Constitution” for being the primary author of the United States Constitution and at first an opponent of, and then a key author of the United...
and Henry Clay devised a plan to help American producers called the American System
American System (economic plan)
The American System, originally called "The American Way", was a mercantilist economic plan that played a prominent role in American policy during the first half of the 19th century...
. It included a protective tariff more commonly known as the Tariff of 1816, which increased the price of British goods so that American goods could compete with them. The northern United States
Northern United States
Northern United States, also sometimes the North, may refer to:* A particular grouping of states or regions of the United States of America. The United States Census Bureau divides some of the northernmost United States into the Midwest Region and the Northeast Region...
were quite pleased by this tariff since the North's economy was increasingly based on manufacturing.
Although most Northerners, like most Southerners, were still farmers (84% for the whole country), the North was increasingly industrial, with 20 percent of its workforce engaged in manufacturing, compared to 8 percent in the South. Many industries and workers in the North competed with British imports and benefited from the tariff. The Southerners, however, were outraged, since they were net consumers of the manufactured goods which now cost more. Further their agricultural exports to Britain might be threatened if Britain retaliated
Trade war
A trade war refers to two or more states raising or creating tariffs or other trade barriers on each other in retaliation for other trade barriers...
.
Dallas recommended the retention of the tariff regime in place during the 1812 War in a report published in February 1816 in order to develop American industry in the event of another war with the United Kingdom or other European powers. The proposal was adopted by President Madison and congressional leadership, including Speaker Clay. A House committee recommended the adoption of this tariff predicting that it would only be necessary for a few years until the United States was strong enough to defend itself against foreign powers. The tariff was popular in areas such as Pennsylvania and New York where manufacturing industry was growing rapidly. It was supported widely in those states to defend American manufacturers against competition from British manufacturers. It was also popular in the West, including in Clay's home state of Kentucky
Kentucky
The Commonwealth of Kentucky is a state located in the East Central United States of America. As classified by the United States Census Bureau, Kentucky is a Southern state, more specifically in the East South Central region. Kentucky is one of four U.S. states constituted as a commonwealth...
, where those who hoped to develop hemp
Hemp
Hemp is mostly used as a name for low tetrahydrocannabinol strains of the plant Cannabis sativa, of fiber and/or oilseed varieties. In modern times, hemp has been used for industrial purposes including paper, textiles, biodegradable plastics, construction, health food and fuel with modest...
and flax
Flax
Flax is a member of the genus Linum in the family Linaceae. It is native to the region extending from the eastern Mediterranean to India and was probably first domesticated in the Fertile Crescent...
as crops desired new tariffs to support these infant industries
Infant industry argument
The Infant industry argument is an economic rationale for trade protectionism. The core of the argument is that nascent industries often do not have the economies of scale that their older competitors from other countries may have, and thus need to be protected until they can attain similar...
.
The proposal was less popular with New England merchants who were hoping to restore trade with Britain and other European powers and import products from Europe in return for U.S. exports such as cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
. Daniel Webster represented their viewpoint and he managed to win some concessions about the level of the tariff. It was also less popular in the South as it would increase the costs of production of their export crops notably cotton. It was also opposed by people who saw it as raising the costs of living of the poor. John Randolph in his speech in opposition raised both of these points. "Upon whom bears the duty on coarse woollens and linens and blankets, upon salt and all the necessaries of life? Upon poor men and upon slaveholders." (1) However, the tariff was supported by notable Southern leaders such as President Madison and former president Thomas Jefferson
Thomas Jefferson
Thomas Jefferson was the principal author of the United States Declaration of Independence and the Statute of Virginia for Religious Freedom , the third President of the United States and founder of the University of Virginia...
. Notably, John C. Calhoun
John C. Calhoun
John Caldwell Calhoun was a leading politician and political theorist from South Carolina during the first half of the 19th century. Calhoun eloquently spoke out on every issue of his day, but often changed positions. Calhoun began his political career as a nationalist, modernizer, and proponent...
, who would later be a strong opponent of future tariff regimes, supported the Dallas tariff in the Congress. The act was passed in April 1816 with rates of 25 percent against wool
Wool
Wool is the textile fiber obtained from sheep and certain other animals, including cashmere from goats, mohair from goats, qiviut from muskoxen, vicuña, alpaca, camel from animals in the camel family, and angora from rabbits....
len and cotton goods and a highest rate of 30 percent. Further, no duty on cotton and woollen goods was to be less than six and a quarter cents a yard which would have a regressive impact over time. The measure had support from elected representatives from every state except Delaware
Delaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...
and North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
.
History
The tariff was retained until 1824 when it was massively increased. In 1828, the so-called "Tariff of Abominations" was introduced increasing the rate of tariffs significantly to assist Northern manufacturers. This was massively unpopular as it raised the costs of production significantly. Further, as the measure increased the price of cotton goods, British textile manufacturers sold less in the U.S. and reduced their purchases from Southern cotton growers accordingly. This tariff was massively unpopular in the South and opposition was led by Calhoun, who was then Vice PresidentVice President of the United States
The Vice President of the United States is the holder of a public office created by the United States Constitution. The Vice President, together with the President of the United States, is indirectly elected by the people, through the Electoral College, to a four-year term...
and broke with President John Quincy Adams
John Quincy Adams
John Quincy Adams was the sixth President of the United States . He served as an American diplomat, Senator, and Congressional representative. He was a member of the Federalist, Democratic-Republican, National Republican, and later Anti-Masonic and Whig parties. Adams was the son of former...
over the issue. Calhoun then became Vice President under Andrew Jackson
Andrew Jackson
Andrew Jackson was the seventh President of the United States . Based in frontier Tennessee, Jackson was a politician and army general who defeated the Creek Indians at the Battle of Horseshoe Bend , and the British at the Battle of New Orleans...
, who introduced the Tariff of 1832
Tariff of 1832
The Tariff of 1832 was a protectionist tariff in the United States. It was largely written by former President John Quincy Adams, who had been elected to the House of Representatives and been made chairman of the Committee on Manufactures, and reduced tariffs to remedy the conflict created by the...
. This measure reduced the level of tariffs somewhat, but not enough to satisfy Calhoun. He resigned in order to become a Senator for South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
. This prompting the Nullification Crisis, in which South Carolina declared the 1828 and 1832 tariffs "null and void," and began to raise a military force in support of its action. The crisis was averted through the Compromise of 1833 negotiated by Clay where tariff rates were progressively returned to the level of the Dallas tariff by 1842. This averted further threats of nullification
Nullification (U.S. Constitution)
Nullification is a legal theory that a State has the right to nullify, or invalidate, any federal law which that state has deemed unconstitutional...
although the debate was a precursor to the arguments over slavery in the future.