A History of the United StatesAdams, Charles Kendall
History
A History of the United States
Adams, Charles Kendall
United States -- History
=316. Some Results of the War.=—With the decline of Federalism came a
natural increase of national democratic spirit and a lessening of the
dependence on either Great Britain or France, which, as we have before
seen, had characterized the generation that grew up just after the
Revolution. This was a clear gain from the war. On the other hand, the
interests of the sections began more sharply to diverge. The North,
during the trouble with England, had taken to manufacturing, and now
began to demand a really protective tariff for its “infant industries.”
This policy, though encouraged by the West for the sake of certain
products like hemp, was soon seen to bear hard on the South. Previous
legislation on the subject (§ 266) had paved the way for an effective
tariff, and the influx of British goods brought into the country after
the close of the war showed that the newly developed industries,
especially that of cotton manufacture, which had increased greatly since
1810, would find it hard to subsist without support. So the tariff act
of 1816 was passed, in spite of the opposition of Daniel Webster, who
represented New England shipping interests, and of John Randolph, who
represented the agricultural South and the stricter forms of
Republicanism. The rate (about twenty-five per cent), placed on imported
cotton and woolen goods, was found practically prohibitive by Southern
planters, who needed coarse clothes for their slaves. Thus the
Southerners began to be alienated from the Democratic-Republican party,
although not a few of them helped to pass the act of 1816. Among these
was John C. Calhoun, whose leanings toward a strong government were
still pronounced.
=317. The National Bank and Internal Improvements.=—The year 1816 also
saw the passage of another financial measure destined to cause division
later. This was the reëstablishment of a national bank, Hamilton’s bank
(§ 266) having failed to secure a second charter in 1811. The financial
burdens of the war had fallen in consequence upon the state banks, which
had not been managed well. Hence the new bank scheme was favored even by
cautious Republicans like Madison. Its establishment for twenty years,
with a largely increased capital, enabled the country practically to
resume a specie basis in less than a year.[137] A fund of a million and
a half dollars was paid by it to the government for the privileges
granted by the charter, and the problem how to employ this sum to the
best advantage brought forward still another question involving
conflicting interests.
Public-domain text, read in full here on John Shaqi.
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