The Menace of Peace 169 



The auction system tended to defeat the protective tariff. 

 Before 1816 auctions had played such an unimportant role that 

 their evils were not mentioned in the memorials of manufacturers 

 and chambers of commerce praying for protection to domestic 

 producers.^® The first petitions listed in the Annals of Congress 

 complaining of auctions and pleading for protection were two 

 presented in February, 1817, one from "sundry inhabitants of 

 the city of New York on behalf of domestic manufacturers" and 

 a similar petition from the merchants of that city, and recom- 

 mending a 10% tax on auction sales.^^ This movement started 

 naturally in New York where the abuses were most extensive 

 and severe and spread rapidly to all commercial cities, even towns 

 far inland. ^^ The manufacturers asked Congress for further 

 protection in three ways : ( i ) to abolish customs credits on 

 imports, (2) to alter and increase the duties on imported goods, 

 and (3) to impose a restrictive, if not prohibitory, tax on sales 

 at auction. The auction system was opposed with great fury 

 for many years. -^ The distress wrought by dumping after 1816 

 was a chief factor in inspiring the demand for a secure and stable 

 "home market."^'' The anti-auction movement was affiliated 

 with the "American System" movement.^^ 



^ For instance, the memorial of the mechanics and manufacturers in 

 New York City for protection to manufacturers in 1800 (Annals of 

 Congress, 6th Congress, 2d session, 1291) ; petition of the Philadelphia 

 artisans and manufacturers in 1803 (Annals of Congress, 8th Congress, 

 2d session, 1467) ; petitions for protection in 1811-2 (Annals of Congress, 

 I2th Congress, ist and 2d session) ; Tench Coxe's report on manufactures 

 in 1813 (Annals of Congress, 13th Congress, Vol. II, 2570-2642) ; peti- 

 tions of the cotton manufacturers, in December, 1815, and February, 1816 

 (Annals of Congress, 14th Congress, ist session, 1645-1656) gives a 

 long list of difficulties under which cotton manufacturers were working 

 but does not mention auctions. 



^Annals of Congress, 14th Congress, 2d session, 848-51, contains the 

 text of these petitions. 



"*For example read the petition of the Berkshire County (Mass.) 

 merchants assembled at Pittsfield and see how it appeals on the basis of 

 protection. Given in Xiles, 38: 94. 



^ Bolles, I, 390; Xiles, 37: 298. 



^ Niles, 21 : 147. 



^^ At a "Great meeting at New York" in 1828 of citizens supporting 

 the "American System" and "friendly to national industry" adopted 

 the resolution: "That we deprecate, as injurious to domestic industry. 



