398 TAXATION PROBLEMS 



kept Congress occupied for thirty years, till the Civil War settled 

 the slavery issue. The subsequent tariff acts, namely, 1883, 1890, 

 1894, 1897, 1909, and 1913 were all highly protective to the manu- 

 facturing industry. After the abolition of slavery in the South, 

 and the growth of modern industrialism in that section under free 

 labor, the South, too, came to favor a protective tariff on such 

 products as were manufactured there. But prior to the Civil War, 

 the tariff was referred to, quite generally, as a sectional issue, the 

 North being the section benefited. 



Theory and Practice. Most great doctrines, like the doctrine 

 of a protective tariff, should be tested by both theory and practice. 

 The controversy in this country over the theory of protection is 

 apparently as far from abatement now as it was at its inception a 

 hundred and thirty years ago. It is more profitable, therefore, first 

 to examine very briefly the workings of a protective tariff, as related 

 to agriculture, before giving attention to the theory of the subject. 



In New England. New England is the one section of the coun- 

 try in which the cycle of protection is most nearly complete, and it 

 will therefore be used to illustrate the workings of our protective 

 system. Since the first " protective tariffs" were designed solely 

 to protect manufacturing, and since manufacturing, prior to the 

 Civil War, was confined almost wholly to the North, it seems fair 

 to turn to this section to study the fruits of the protective system. 



The first tariff act ever enacted by this government (July 4, 

 1789) bore this preamble: 



"Sec. 1. Whereas it is necessary for the support of government, for the 

 discharge of the debts of the United States, and the encouragement and pro- 

 tection of manufactures, that duties be laid on goods, wares and merchandise 

 imported: Be it enacted . . ." 



Condition of the Country in 1789. Documents of that day 

 bespoke a period of prosperity for agriculture, for labor, and for 

 manufactures. The abundance of free land made it possible for 

 any man of ordinary ability to own a good home and a good farm. 

 The second profound influence of free land was to keep wages high. 

 One of the early fathers had written many years before this time, 

 "Our children's children will hardly see this great continent filled 

 with people, soe that our servants will still desire freedom to plant 

 for themselves, and not stay but for verie great wages." A royal 

 official wrote in 1723, "North America containing a vast tract of 

 land, every one is able to procure a piece of land at an inconsider- 

 able rate, and therefore is fond to set up for himself rather than 

 work for hire. This makes labor continue very dear, a common 



