Thirty Years' View (Vol. I of 2)

On the other hand, Mr. White, of Tennessee, exalted the merit of the veto message above all the acts of General Jackson's life, and claimed for it a more enduring fame, and deeper gratitude than for the greatest of his victories: and concluded his speech thus:

"When the excitement of the time in which we act shall have passed away, and the historian and biographer shall be employed in giving his account of the acts of our most distinguished public men, and comes to the name of Andrew Jackson; when he shall have recounted all the great and good deeds done by this man in the course of a long and eventful life, and the circumstances under which this message was communicated shall have been stated, the conclusion will be, that, in doing this, he has shown a willingness to risk more to promote the happiness of his fellow-men, and to secure their liberties, than by the doing of any other act whatever."

And such, in my opinion, will be the judgment of posterity – the judgment of posterity, if furnished with the material to appreciate the circumstances under which he acted when signing the message which was to decide the question of supremacy between the bank and the government.

CHAPTER LXIX.

THE PROTECTIVE SYSTEM

The cycle had come round which, periodically, and once in four years, brings up a presidential election and a tariff discussion. The two events seemed to be inseparable; and this being the fourth year from the great tariff debate of 1828, and the fourth year from the last presidential election, and being the long session which precedes the election, it was the one in regular course in which the candidates and their friends make the greatest efforts to operate upon public opinion through the measures which they propose, or oppose in Congress. Added to this, the election being one on which not only a change of political parties depended, but also a second trial of the election in the House of Representatives in 1824-'25, in which Mr. Adams and Mr. Clay triumphed over General Jackson, with the advantage on their side now of both being in Congress: for these reasons this session became the most prolific of party topics, and of party contests, of any one ever seen in the annals of our Congress. And certainly there were large subjects to be brought before the people, and great talents to appear in their support and defence. The renewal of the national bank charter – the continuance of the protective system – internal improvement by the federal government – division of the public land money, or of the lands themselves – colonization society – extension of pension list – Georgia and the Cherokees – Georgia and the Supreme Court – imprisoned missionaries – were all brought forward, and pressed with zeal, by the party out of power; and pressed in a way to show their connection with the presidential canvass, and the reliance upon them to govern its result. The party in power were chiefly on the defensive; and it was the complete civil representation of a military attack and defence of a fortified place – a siege – with its open and covert attacks on one side, its repulses and sallies on the other – its sappings and minings, as well as its open thundering assaults. And this continued for seven long months – from December to July; fierce in the beginning, and becoming more so from day to day until the last hour of the last day of the exhausted session. It was the most fiery and eventful session that I had then seen – or since seen, except one – the panic session of 1834-'35.

The two leading measures in this plan of operations – the bank and the tariff – were brought forward simultaneously and quickly – on the same day, and under the same lead. The memorial for the renewal of the bank charter was presented in the Senate on the 9th day of January: on the same day, and as soon as it was referred, Mr. Clay submitted a resolution in relation to the tariff, and delivered a speech of three days' duration in support of the American system. The President, in his message, and in view of the approaching extinction of the public debt – then reduced to an event of certainty within the ensuing year – recommended the abolition of duties on numerous articles of necessity or comfort, not produced at home. Mr. Clay proposed to make the reduction in subordination to the preservation of the "American system" and this opened the whole question of free trade and protection; and occasioned that field to be trod over again with all the vigor of a fresh exploration. Mr. Clay opened his great speech with a retrospect of what the condition of the country was for seven years before the tarriff of 1824, and what it had been since – the first a period of unprecedented calamity, the latter of equally unprecedented prosperity: – and he made the two conditions equally dependent upon the absence and presence of the protective system. He said:

"Eight years ago, it was my painful duty to present to the other House of Congress an unexaggerated picture of the general distress pervading the whole land. We must all yet remember some of its frightful features. We all know that the people were then oppressed and borne down by an enormous load of debt; that the value of property was at the lowest point of depression; that ruinous sales and sacrifices were every where made of real estate; that stop laws and relief laws and paper money were adopted to save the people from impending destruction; that a deficit in the public revenue existed, which compelled government to seize upon, and divert from its legitimate object, the appropriation to the sinking fund, to redeem the national debt; and that our commerce and navigation were threatened with a complete paralysis. In short, sir, if I were to select any term of seven years since the adoption of the present constitution, which exhibited a scene of the most wide-spread dismay and desolation, it would be exactly the term of seven years which immediately preceded the establishment of the tariff of 1824."

This was a faithful picture of that calamitous period, but the argument derived from it was a two-edged sword, which cut, and deeply, into another measure, also lauded as the cause of the public prosperity. These seven years of national distress which immediately preceded the tariff of 1824, were also the same seven years which immediately followed the establishment of the national bank; and which, at the time it was chartered, was to be the remedy for all the distress under which the country labored: besides, the protective system was actually commenced in the year 1816 – contemporaneously with the establishment of the national bank. Before 1816, protection to home industry had been an incident to the levy of revenue; but in 1816 it became an object. Mr. Clay thus deduced the origin and progress of the protective policy:

"It began on the ever memorable 4th day of July – the 4th of July, 1789. The second act which stands recorded in the statute book, bearing the illustrious signature of George Washington, laid the corner stone of the whole system. That there might be no mistake about the matter, it was then solemly proclaimed to the American people and to the world, that it was necessary for "the encouragement and protection of manufactures," that duties should be laid. It is in vain to urge the small amount of the measure of protection then extended. The great principle was then established by the fathers of the constitution, with the father of his country at their head. And it cannot now be questioned, that, if the government had not then been new and the subject untried, a greater measure of protection would have been applied, if it had been supposed necessary. Shortly after, the master minds of Jefferson and Hamilton were brought to act on this interesting subject. Taking views of it appertaining to the departments of foreign affairs and of the treasury, which they respectively filled, they presented, severally, reports which yet remain monuments of their profound wisdom, and came to the same conclusion of protection to American industry. Mr. Jefferson argued that foreign restrictions, foreign prohibitions, and foreign high duties, ought to be met, at home, by American restrictions, American prohibitions, and American high duties. Mr. Hamilton, surveying the entire ground, and looking at the inherent nature of the subject, treated it with an ability which, if ever equalled, has not been surpassed, and earnestly recommended protection.

"The wars of the French revolution commenced about this period, and streams of gold poured into the United States through a thousand channels, opened or enlarged by the successful commerce which our neutrality enabled us to prosecute. We forgot, or overlooked, in the general prosperity, the necessity of encouraging our domestic manufactures. Then came the edicts of Napoleon, and the British orders in council; and our embargo, non-intercourse, non-importation, and war, followed in rapid succession. These national measures, amounting to a total suspension, for the period of their duration, of our foreign commerce, afforded the most efficacious encouragement to American manufactures; and accordingly, they every where sprung up. Whilst these measures of restriction and this state of war continued the manufacturers were stimulated in their enterprises by every assurance of support, by public sentiment, and by legislative resolves. It was about that period (1808) that South Carolina bore her high testimony to the wisdom of the policy, in an act of her legislature, the preamble of which, now before me, reads: 'Whereas the establishment and encouragement of domestic manufactures is conducive to the interest of a State, by adding new incentives to industry, and as being the means of disposing, to advantage, the surplus productions of the agriculturist: And whereas, in the present unexampled state of the world, their establishment in our country is not only expedient, but politic, in rendering us independent of foreign nations.' The legislature, not being competent to afford the most efficacious aid, by imposing duties on foreign rival articles, proceeded to incorporate a company.

"Peace, under the Treaty of Ghent, returned in 1815, but there did not return with it the golden days which preceded the edicts levelled at our commerce by Great Britain and France. It found all Europe tranquilly resuming the arts and the business of civil life. It found Europe no longer the consumer of our surplus, and the employer of our navigation, but excluding, or heavily burdening, almost all the productions of our agriculture and our rivals in manufactures, in navigation, and in commerce. It found our country, in short, in a situation totally different from all the past – new and untried. It became necessary to adapt our laws, and especially our laws of impost, to the new circumstances in which we found ourselves. It has been said that the tariff of 1816 was a measure of mere revenue; and that it only reduced the war duties to a peace standard. It is true that the question then was, how much, and in what way, should the double duties of the war be reduced? Now, also, the question is, on what articles shall the duties be reduced so as to subject the amount of the future revenue to the wants of the government? Then it was deemed an inquiry of the first importance, as it should be now, how the reduction should be made, so as to secure proper encouragement to domestic industry. That this was a leading object in the arrangement of the tariff of 1816, I well remember, and it is demonstrated by the language of Mr. Dallas.

"The subject of the American system was again brought up in 1820, by the bill reported by the chairman of the Committee on Manufactures, now a member of the bench of the Supreme Court of the United States, and the principle was successfully maintained by the representatives of the people; but the bill which they passed was defeated in the Senate. It was revived in 1824, the whole ground carefully and deliberately explored, and the bill then introduced, receiving all the sanctions of the constitution. This act of 1824 needed amendments in some particulars, which were attempted in 1828, but ended in some injuries to the system; and now the whole aim was to save an existing system – not to create a new one."

And he summed up his policy thus:

"1. That the policy which we have been considering ought to continue to be regarded as the genuine American system.

"2. That the free trade system, which is proposed as its substitute, ought really to be considered as the British colonial system.

"3. That the American system is beneficial to all parts of the Union, and absolutely necessary to much the larger portion.

"4. That the price of the great staple of cotton, and of all our chief productions of agriculture, has been sustained and upheld, and a decline averted by the protective system.

"5. That, if the foreign demand for cotton has been at all diminished by the operation of that system, the diminution has been more than compensated in the additional demand created at home.

"6. That the constant tendency of the system, by creating competition among ourselves, and between American and European industry, reciprocally acting upon each other, is to reduce prices of manufactured objects.

"7. That, in point of fact, objects within the scope of the policy of protection have greatly fallen in price.

"8. That if, in a season of peace, these benefits are experienced, in a season of war, when the foreign supply might be cut off, they would be much more extensively felt.

"9. And, finally, that the substitution of the British colonial system for the American system, without benefiting any section of the Union, by subjecting us to a foreign legislation, regulated by foreign interests, would lead to the prostration of our manufactures, general impoverishment, and ultimate ruin."

Mr. Clay was supported in his general views by many able speakers – among them, Dickerson and Frelinghuysen of New Jersey; Ewing of Ohio; Holmes of Maine; Bell of New Hampshire; Hendricks of Indiana; Webster and Silsbee of Massachusetts; Robbins and Knight of Rhode Island; Wilkins and Dallas of Pennsylvania; Sprague of Maine; Clayton of Delaware; Chambers of Maryland; Foot of Connecticut. On the other hand the speakers in opposition to the protective policy were equally numerous, ardent and able. They were: Messrs. Hayne and Miller of South Carolina; Brown and Mangum of North Carolina; Forsyth and Troup of Georgia; Grundy and White of Tennessee; Hill of New Hampshire; Kane of Illinois; Benton of Missouri; King and Moore of Alabama; Poindexter of Mississippi; Tazewell and Tyler of Virginia; General Samuel Smith of Maryland. I limit the enumeration to the Senate. In the House the subject was still more fully debated, according to its numbers; and like the bank question, gave rise to heat; and was kept alive to the last day.

General Smith of Maryland, took up the question at once as bearing upon the harmony and stability of the Union – as unfit to be pressed on that account as well as for its own demerits – avowed himself a friend to incidental protection, for which he had always voted, and even voted for the act of 1816 – which he considered going far enough; and insisted that all "manufacturers" were doing well under it, and did not need the acts of 1824 and 1828, which were made for "capitalists" – to enable them to engage in manufacturing; and who had not the requisite skill and care, and suffered, and called upon Congress for more assistance. He said:

"We have arrived at a crisis. Yes, Mr. President, at a crisis more appalling than a day of battle. I adjure the Committee on Manufactures to pause – to reflect on the dissatisfaction of all the South. South Carolina has expressed itself strongly against the tariff of 1828 – stronger than the other States are willing to speak. But, sir, the whole of the South feel deeply the oppression of that tariff. In this respect there is no difference of opinion. The South – the whole Southern States – all, consider it as oppressive. They have not yet spoken; but when they do speak, it will be with a voice that will not implore, but will demand redress. How much better, then, to grant redress? How much better that the Committee on Manufactures heal the wound which has been inflicted? I want nothing that shall injure the manufacturer. I only want justice.

"I am, Mr. President, one of the few survivors of those who fought in the war of the revolution. We then thought we fought for liberty – for equal rights. We fought against taxation, the proceeds of which were for the benefit of others. Where is the difference, if the people are to be taxed by the manufacturers or by any others? I say manufacturers – and why do I say so? When the Senate met, there was a strong disposition with all parties to ameliorate the tariff of 1828; but I now see a change, which makes me almost despair of any thing effectual being accomplished. Even the small concessions made by the senator from Kentucky [Mr. Clay] have been reprobated by the lobby members, the agents of the manufacturers. I am told they have put their fiat on any change whatever, and hence, as a consequence, the change in the course and language of gentlemen, which almost precludes all hope. Those interested men hang on the Committee on Manufactures like an incubus. I say to that committee, depend upon your own good judgments – survey the whole subject as politicians – discard sectional interests, and study only the common weal – act with these views – and thus relieve the oppressions of the South.

"I have ever, Mr. President, supported the interest of manufactures, as far as it could be done incidentally. I supported the late Mr. Lowndes's bill of 1816. I was a member of his committee, and that bill protected the manufactures sufficiently, except bar iron. Mr. Lowndes had reported fifteen dollars per ton. The House reduced it to nine dollars per ton. That act enabled the manufacturers to exclude importations of certain articles. The hatters carry on their business by their sons and apprentices, and few, if any, hats are now imported. Large quantities are exported, and preferred. All articles of leather, from tanned side to the finest harness or saddle, have been excluded from importation; and why? Because the business is conducted by their own hard hands, their own labor, and they are now heavily taxed by the tariff of 1828, to enable the rich to enter into the manufactures of the country. Yes, sir, I say the rich, who entered into the business after the act of 1824, which proved to be a mushroom affair, and many of them suffered severely. The act of 1816, I repeat, gave all the protection that was necessary or proper, under which the industrious and frugal completely succeeded. But, sir, the capitalist who had invested his capital in manufactures, was not to be satisfied with ordinary profit; and therefore the act of 1828."

Mr. Clay, in his opening speech had adverted to the Southern discontent at the working of the protective tariff, in a way that showed he felt it to be serious, and entitled to enter into the consideration of statesmen; but considered this system an overruling necessity of such want and value to other parts of the Union, that the danger to its existence laid in the abandonment, and not in the continuance of the "American system." On this point he expressed himself thus:

"And now, Mr. President, I have to make a few observations on a delicate subject, which I approach with all the respect that is due to its serious and grave nature. They have not, indeed, been rendered necessary by the speech of the gentleman from South Carolina, whose forbearance to notice the topic was commendable, as his argument throughout was characterized by an ability and dignity worthy of him and of the Senate. The gentleman made one declaration which might possibly be misinterpreted, and I submit to him whether an explanation of it be not proper. The declaration, as reported in his printed speech, is: 'the instinct of self-interest might have taught us an easier way of relieving ourselves from this oppression. It wanted but the will to have supplied ourselves with every article embraced in the protective system, free of duty, without any other participation, on our part than a simple consent to receive them.' [Here Mr. Hayne rose, and remarked that the passages, which immediately preceded and followed the paragraph cited, he thought, plainly indicated his meaning, which related to evasions of the system, by illicit introduction of goods, which they were not disposed to countenance in South Carolina.] I am happy to hear this explanation. But, sir, it is impossible to conceal from our view the fact that there is great excitement in South Carolina; that the protective system is openly and violently denounced in popular meetings; and that the legislature itself has declared its purpose of resorting to counteracting measures: a suspension of which has only been submitted to, for the purpose of allowing Congress time to retrace its steps. With respect to this Union, Mr. President, the truth cannot be too generally proclaimed, nor too strongly inculcated, that it is necessary to the whole and to all the parts – necessary to those parts, indeed, in different degrees, but vitally necessary to each; and that, threats to disturb or dissolve it, coming from any of the parts, would be quite as indiscreet and improper, as would be threats from the residue to exclude those parts from the pale of its benefits. The great principle, which lies at the foundation of all free governments, is, that the majority must govern; from which there is nor can be no appeal but to the sword. That majority ought to govern wisely, equitably, moderately, and constitutionally; but, govern it must, subject only to that terrible appeal. If ever one, or several States, being a minority, can, by menacing a dissolution of the Union, succeed in forcing an abandonment of great measures, deemed essential to the interests and prosperity of the whole, the Union, from that moment, is practically gone. It may linger on, in form and name, but its vital spirit has fled for ever! Entertaining these deliberate opinions, I would entreat the patriotic people of South Carolina – the land of Marion, Sumpter, and Pickens; of Rutledge, Laurens, the Pickneys; and Lowndes; of living and present names, which I would mention if they were not living or present – to pause, solemnly pause! and contemplate the frightful precipice which lies directly before them. To retreat, may be painful and mortifying to their gallantry and pride; but it is to retreat to the Union, to safety, and to those brethren, with whom, or, with whose ancestors, they, or their ancestors, have won, on the fields of glory, imperishable renown. To advance, is to rush on certain and inevitable disgrace and destruction.

"The danger to our Union does not lie on the side of persistance in the American system, but on that of its abandonment. If, as I have supposed and believe, the inhabitants of all north and east of James River, and all west of the mountains, including Louisiana are deeply interested in the preservation of that system, would they be reconciled to its overthrow? Can it be expected that two thirds, if not three fourths, of the people of the United States would consent to the destruction of a policy believed to be indispensably necessary to their prosperity? When too, this sacrifice is made at the instance of a single interest, which they verily believe will not be promoted by it? In estimating the degree of peril which may be incident to two opposite courses of human policy, the statesman would be short-sighted who should content himself with viewing only the evils, real or imaginary, which belong to that course which is in practical operation. He should lift himself up to the contemplation of those greater and more certain dangers which might inevitably attend the adoption of the alternative course. What would be the condition of this Union, if Pennsylvania and New-York, those mammoth members of our confederacy, were firmly persuaded that their industry was paralyzed, and their prosperity blighted, by the enforcement of the British colonial system, under the delusive name of free trade? They are now tranquil, and happy, and contented, conscious of their welfare and feeling a salutary and rapid circulation of the products of home manufactures and home industry throughout all their great arteries. But let that be checked, let them feel that a foreign system is to predominate, and the sources of their subsistence and comfort dried up; let New England and the West, and the Middle States, all feel that they too are the victims of a mistaken policy, and let these vast portions of our country despair of any favorable change, and then, indeed, might we tremble for the continuance and safety of this Union!"