Another
Court Historian’s False Tariff History
by
Thomas J. DiLorenzo
by Thomas J. DiLorenzo
Recently
by Thomas DiLorenzo: The
Latest New York Times Nonsense About Lincoln
The only thing
worse than a historian who calls himself a "Lincoln scholar"
is a sociologist who does the same. This truth was on display recently
in a January 9 Washington Post article entitled "Five
Myths about Why the South Seceded" by one James W. Loewen.
In discussing
the role of federal tariff policy in precipitating the War to Prevent
Southern Independence Loewen is either grossly ignorant, or he is
dishonest. He begins by referring to the 1828 Tariff of Abominations,
which led to South Carolina’s Ordinance of Nullification, whereby
the state rightly condemned the 48 percent average tariff rate as
a blatant act of plunder (mostly at the South’s expense) and refused
to collect it at Charleston Harbor. Loewen writes that "when,
after South Carolina demanded the right to nullify federal laws
or secede to protest, President Andrew Jackson threatened force."
That much is true. "No state joined the movement, and South
Carolina backed down," Loewen then writes. This is all false.
It is not true that "no state joined the movement." As
historian Chauncy Boucher wrote in The
Nullification Controversy in South Carolina, Virginia, North
Carolina, and Alabama joined South Carolina in publicly denouncing
the Tariff of Abominations, while the Yankee bastions of Massachusetts,
Ohio, Pennsylvania, Rhode Island, Indiana, and New York responded
with their own resolutions in support of political plunder through
extortionate tariff rates.
Nor is it true
to say that "South Carolina backed down." South Carolina
and the Jackson administration reached a compromise in 1833:
Jackson "backed down" by not following through with his
threats to use force to collect the tariff, and South Carolina agreed
to collect tariffs at a much lower rate. Jackson "backed down"
as much (or more) as South Carolina did, but the Official Court
Historian’s History of the War, as expressed by Loewen, holds that
only South Carolina retreated. The reason for this distortion of
history is to spread the lie that tax protesters such as the South
Carolina nullifiers, or the Whiskey Rebels of an earlier generation,
have never successfully challenged the federal government’s taxing
"authority." But of course they have succeeded;
The Whiskey Rebels ended up not paying the federal whisky tax, and
the Tariff of Abominations was sharply reduced over a ten-year period.
Loewen next
spreads an egregious falsehood about the tariff: "Tariffs were
not an issue in 1860, and Southern states said nothing about them,"
he writes. "Why would they? Southerners had written the tariff
of 1857, under which the nation was functioning. Its rates were
lower than at any point since 1816." Every bit of this narrative
is false.
Tariffs certainly
were an issue in 1860. Lincoln’s official campaign poster featured
mug shots of himself and vice presidential candidate Hannibal Hamlin,
above the campaign slogan, "Protection for Home Industry."
(That is, high tariff rates to "protect home industry"
from international competition). In a speech in Pittsburgh, Pennsylvania
("Steeltown, U.S.A."), a hotbed of protectionist sentiment,
Lincoln announced that no other issue was as important as
raising the tariff rate. It is well known that Lincoln made skillful
use of his lifelong protectionist credentials to win the support
of the Pennsylvania delegation at the Republican convention of 1860,
and he did sign ten tariff-increasing bills while in office. When
he announced a naval blockade of the Southern ports during the first
months of the war, he gave only one reason for the blockade: tariff
collection.
As I have written
numerous times, in his first inaugural address Lincoln announced
that it was his duty "to collect the duties and imposts,"
and then threatened "force," "invasion" and
"bloodshed" (his exact words) in any state that refused
to collect the federal tariff, the average rate of which had just
been doubled two days earlier. He was not going to "back down"
to tax protesters in South Carolina or anywhere else, as Andrew
Jackson had done.
The most egregious
falsehood spread by Loewen is to say that the tariff that was in
existence in 1860 was the 1857 tariff rate, which was in fact the
lowest tariff rate of the entire nineteenth century. In his famous
Tariff
History of the United States economist Frank Taussig called
the 1857 tariff the high water mark of free trade during that century.
The Big Lie here is that Loewen makes no mention at all of the fact
that the notorious Morrill Tariff, which more than doubled
the average tariff rate (from 15% to 32.6% initially), was passed
by the U.S. House of Representatives during the 185960 session
of Congress, and was the cornerstone of the Republican Party’s economic
policy. It then passed the U.S. Senate, and was signed into law
by President James Buchanan on March 2, 1861, two days before Lincoln’s
inauguration, where he threatened war on any state that failed to
collect the new tax. At the time, the tariff accounted for at least
90 percent of all federal tax revenues. The Morrill Tariff therefore
represented a more than doubling of the rate of federal taxation!
This threat
to use "force" and "invasion" against sovereign
states, by the way, was a threat to commit treason. Article
3, Section 3 of the U.S. Constitution defines treason as follows:
"Treason against the United States, shall consist only in levying
War against them, or in adhering to their Enemies,
giving them Aid and Comfort" (emphasis added). Lincoln followed
through with his threat; his invasion of the Southern states was
the very definition of treason under the Constitution.
The words "Morrill
Tariff" do not appear anywhere in Loewen’s Washington Post
article despite the fact that he portrays himself as some kind of
"Keeper of The Truth" regarding "Civil War"
history. (And where were the Washington Post’s "fact
checkers?!) It was the Morrill Tariff that Lincoln referred to in
his first inaugural address, not the much lower 1857 tariff, as
Loewen falsely claims.
Abraham Lincoln
was not the only American president who believed that the tariff
was an important political issue in 1860. Contrary to Loewen’s false
claims, Jefferson Davis, like Lincoln, highlighted the tariff issue
in his February 18, 1861 inaugural address, delivered in Montgomery,
Alabama (From The
Papers of Jefferson Davis, vol. 7, pp. 4551). After
announcing that the Confederate government was "anxious to
cultivate peace and commerce with all nations" Davis said the
following:
An agricultural
people, whose chief interest is the export of a commodity required
in every manufacturing country, our true policy is peace, and
the freest trade, which our necessities will permit. It is alike
our interest, and that of all those to whom we would sell and
from whom we would buy, that there should be the fewest practicable
restrictions upon the interchange of commodities. There can be
but little rivalry between ours and any manufacturing or navigating
community, such as the Northeastern States of the American Union.
It must follow, therefore, that a mutual interest would invite
good will and kind offices. If, however, passion or the lust of
dominion should cloud the judgment or inflame the ambition of
those States, we must prepare to meet the emergency . . .
Thus, Loewen’s
statement that the Southern states said "nothing" about
tariff policy is unequivocally false. Jefferson Davis proclaimed
here that the economy of the Confederacy would be based on free
trade. Indeed, the Confederate Constitution of 1861 outlawed protectionist
tariffs altogether, and only allowed for a modest "revenue
tariff."
When Davis
spoke of a "passion or the lust for dominion," he was
referring to the constant attempts, for some seventy years, of the
Northern Whig and Republican parties to plunder the South with the
instrument of protectionist tariffs, as was attempted with the 1828
Tariff of Abominations. In other words, he declared here that, in
his opinion, Lincoln was deadly serious (pun intended) about enforcing
the newly-doubled rate of federal tariff taxation with a military
invasion of the Southern states, and was preparing for war as a
result. Contrary to Loewen’s ignorant diatribe, both Abraham Lincoln
and Jefferson Davis announced to the world in 1861 that tariff policy
was indeed a paramount political issue: In their respective inaugural
addresses, Lincoln threatened "invasion" of any state(s)
that failed to collect his tariff, while Davis promised to defend
against any such invasion.
Before the
war, Northern newspapers associated with the Republican Party were
editorializing in favor of naval bombardments of the Southern ports
because they knew that the South was adopting free trade, while
the North was moving in the direction of a 50% average tariff rate
(which did in fact exist, more or less, from 1863 to 1913, when
the federal income tax was adopted). These Republican party propagandists
correctly understood that much of the trade of the world would enter
the U.S. through Southern ports under such a scenario. Rather than
adopting reasonable tariff rates themselves, they agitated for war
on the South.
The tariff
controversy was not the only cause of the war, and I have never
argued that it was (despite lies to the contrary told about me by
such people as historian Jeffrey Hummel). But it was obviously an
important cause of the decades-long conflict between North and South.
The rest
of Loewen’s Washington Post article is about as accurate
as his uninformed rantings about tariff policy. This was the Post’s
second attempt to "correct the record" of the "Civil
War," which began 150 years ago this year, in the first nine
days of 2011. The government’s company newspaper is apparently terrified
that the public will get wind of the truth and begin questioning
the foundational myth of the federal Leviathan state.
January
18, 2011
Thomas
J. DiLorenzo [send him mail]
is professor of economics at Loyola College in Maryland and the
author of The
Real Lincoln; Lincoln
Unmasked: What You’re Not Supposed To Know about Dishonest Abe
and How
Capitalism Saved America. His latest book is Hamilton’s
Curse: How Jefferson’s Archenemy Betrayed the American Revolution
– And What It Means for America Today.
Copyright
© 2011 by LewRockwell.com. Permission to reprint in whole or in
part is gladly granted, provided full credit is given.
The
Best of Thomas DiLorenzo at LRC
Thomas
DiLorenzo Archives at Mises.org
|