Tariff of 1857
Encyclopedia
The Tariff of 1857 was a major tax reduction in the United States
, creating a mid-century lowpoint for tariffs. It amended the Walker Tariff
of 1846 by lowering rates to around 17% on average.
The Tariff of 1857 was authored primarily by Robert Mercer Taliaferro Hunter
of Virginia
. The bill was offered in response to a federal budget surplus in the mid 1850s. Hunter intended to disperse this surplus through a tax cut.
Supporters of the bill came mostly from Southern and agricultural states, which tended to be export dependent and tended to support the "free trade" position. They were also joined by a handful of New England wool manufacturers. This constituency traditionally supported protectionism
in the 19th century. A series of political setbacks for the protectionist movement in the early 1850s, however, prompted them to forgo protection for their own goods in exchange for reduced tariffs on their raw material imports such as Canadian wool. According to Kenneth Stampp, the bill “was possible because it did not represent a victory of one section over the other; nor did it produce a clear division between parties. Its supporters included Democrats, Republicans, and Americans; representatives of northern merchants, manufacturers, and railroad interests; and spokesmen for southern farmers and planters. Opposition came largely from two economic groups: the iron manufacturers of Pennsylvania and the wool growers of New England and the West.” [Kenneth M. Stampp, America in 1857: A Nation on the Brink 1990 p. 19. ]
Producers from other traditional protectionist constituencies such as iron, glass, and sheep farmers opposed the bill. When the Panic of 1857
struck later that year, protectionists, led by economist Henry C. Carey, blamed the downturn on the new Tariff schedule. Though economists today reject this explanation, Carey's arguments rejuvenated the protectionist movement and prompted renewed calls for a tariff increase.
The Tariff of 1857's cuts lasted only three years. In 1861, the country changed course again under the heavily protectionist Morrill Tariff
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, creating a mid-century lowpoint for tariffs. It amended the Walker Tariff
Walker tariff
The Walker Tariff was a set of tariff rates adopted by the United States in 1846. The Walker Tariff was enacted by the Democrats, and made substantial cuts in the high rates of the "Black Tariff" of 1842, enacted by the Whigs. It was based on a report by Secretary of the Treasury Robert J. Walker...
of 1846 by lowering rates to around 17% on average.
The Tariff of 1857 was authored primarily by Robert Mercer Taliaferro Hunter
Robert Mercer Taliaferro Hunter
-References:* Patrick, Rembert W. . Jefferson Davis and His Cabinet. Baton Rouge: Louisiana State University Press. pp. 90–101.-External links:* – A speech by R. M. T. Hunter before the U.S. House of Representatives, May 8th, 1846...
of Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
. The bill was offered in response to a federal budget surplus in the mid 1850s. Hunter intended to disperse this surplus through a tax cut.
Supporters of the bill came mostly from Southern and agricultural states, which tended to be export dependent and tended to support the "free trade" position. They were also joined by a handful of New England wool manufacturers. This constituency traditionally supported protectionism
Protectionism
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...
in the 19th century. A series of political setbacks for the protectionist movement in the early 1850s, however, prompted them to forgo protection for their own goods in exchange for reduced tariffs on their raw material imports such as Canadian wool. According to Kenneth Stampp, the bill “was possible because it did not represent a victory of one section over the other; nor did it produce a clear division between parties. Its supporters included Democrats, Republicans, and Americans; representatives of northern merchants, manufacturers, and railroad interests; and spokesmen for southern farmers and planters. Opposition came largely from two economic groups: the iron manufacturers of Pennsylvania and the wool growers of New England and the West.” [Kenneth M. Stampp, America in 1857: A Nation on the Brink 1990 p. 19. ]
Producers from other traditional protectionist constituencies such as iron, glass, and sheep farmers opposed the bill. When the Panic of 1857
Panic of 1857
The Panic of 1857 was a financial panic in the United States caused by the declining international economy and over-expansion of the domestic economy. Indeed, because of the interconnectedness of the world economy by the time of the 1850s, the financial crisis which began in the autumn of 1857 was...
struck later that year, protectionists, led by economist Henry C. Carey, blamed the downturn on the new Tariff schedule. Though economists today reject this explanation, Carey's arguments rejuvenated the protectionist movement and prompted renewed calls for a tariff increase.
The Tariff of 1857's cuts lasted only three years. In 1861, the country changed course again under the heavily protectionist Morrill Tariff
Morrill Tariff
The Morrill Tariff of 1861 was a protective tariff in the United States, adopted on March 2, 1861 during the administration of President James Buchanan....
.