True Causes of the Uncivil War: Understanding the Morrill Tariff

 Morrill, Hon. Justin Smith of Vt. (Photo credit: Wikipedia)

Most Americans believe the U. S. “Civil War” was over slavery. They have to an enormous degree been miseducated. The means and timing of handling the slavery question were at issue, although not in the overly simplified moral sense that lives in postwar and modern propaganda. But had there been no Morrill Tariff there might never have been a war. The conflict that cost of the lives of 650,000 Union and Confederate soldiers and perhaps as many as 50,000 Southern civilians and impoverished many millions for generations might never have been.

A smoldering issue of unjust taxation that enriched Northern manufacturing states and exploited the agricultural South was fanned to a furious blaze in 1860. It was the Morrill Tariff that stirred the smoldering embers of regional mistrust and ignited the fires of Secession in the South. This precipitated a Northern reaction and call to arms that would engulf the nation in the flames of war for four years.

Prior to the U. S. “Civil War” there was no U. S. income tax. In 1860, approximately 95% of U. S. government revenue was raised by a tariff on imported goods. A tariff is a tax on selected imports, most commonly finished or manufactured products. A high tariff is usually legislated not only to raise revenue, but also to protect domestic industry form foreign competition. By placing such a high, protective tariff on imported goods it makes them more expensive to buy than the same domestic goods. This allows domestic industries to charge higher prices and make more money on sales that might otherwise be lost to foreign competition because of cheaper prices (without the tariff) or better quality. This, of course, causes domestic consumers to pay higher prices and have a lower standard of living. Tariffs on some industrial products also hurt other domestic industries that must pay higher prices for goods they need to make their products. Because the nature and products of regional economies can vary widely, high tariffs are sometimes good for one section of the country, but damaging to another section of the country. High tariffs are particularly hard on exporters since they must cope with higher domestic costs and retaliatory foreign tariffs that put them at a pricing disadvantage. This has a depressing effect on both export volume and profit margins. High tariffs have been a frequent cause of economic disruption, strife and war.

Prior to 1824 the average tariff level in the U. S. had been in the 15 to 20 % range. This was thought sufficient to meet federal revenue needs and not excessively burdensome to any section of the country. The increase of the tariff to a 20% average in 1816 was ostensibly to help pay for the War of 1812. It also represented a 26% net profit increase to Northern manufacturers.

In 1824 Northern manufacturing states and the Whig Party under the leadership of Henry Clay began to push for high, protective tariffs. These were strongly opposed by the South. The Southern economy was largely agricultural and geared to exporting a large portion of its cotton and tobacco crops to Europe. In the 1850’s the South accounted for anywhere from 72 to 82% of U. S. exports. They were largely dependent, however, on Europe or the North for the manufactured goods needed for both agricultural production and consumer needs. Northern states received about 20% of the South’s agricultural production. The vast majority of export volume went to Europe. A protective tariff was then a substantial benefit to Northern manufacturing states, but meant considerable economic hardship for the agricultural South.

Read the rest of this story:
True causes of the Uncivil War: Understanding the Morrill Tariff | The Tribune Papers

Related articles

• The Man Who Supersized Higher Education