History of the United StatesBeard, Charles A. (Charles Austin)
History
History of the United States
Beard, Charles A. (Charles Austin)
United States -- History
If to any shippers the broad current of the great river sweeping down to
New Orleans offered easier means of physical communication to the sea
than the canals and railways, the difference could be overcome by the
credit which Eastern bankers were able to extend to the grain and
produce buyers, in the first instance, and through them to the farmers
on the soil. The acute Southern observer just quoted, De Bow, admitted
with evident regret, in 1852, that "last autumn, the rich regions of
Ohio, Indiana, and Illinois were flooded with the local bank notes of
the Eastern States, advanced by the New York houses on produce to be
shipped by way of the canals in the spring.... These moneyed facilities
enable the packer, miller, and speculator to hold on to their produce
until the opening of navigation in the spring and they are no longer
obliged, as formerly, to hurry off their shipments during the winter by
the way of New Orleans in order to realize funds by drafts on their
shipments. The banking facilities at the East are doing as much to draw
trade from us as the canals and railways which Eastern capital is
constructing." Thus canals, railways, and financial credit were swiftly
forging bonds of union between the old home of Jacksonian Democracy in
the West and the older home of Federalism in the East. The nationalism
to which Webster paid eloquent tribute became more and more real with
the passing of time. The self-sufficiency of the pioneer was broken down
as he began to watch the produce markets of New York and Philadelphia
where the prices of corn and hogs fixed his earnings for the year.
=The West and Manufactures.=--In addition to the commercial bonds
between the East and the West there was growing up a common interest in
manufactures. As skilled white labor increased in the Ohio Valley, the
industries springing up in the new cities made Western life more like
that of the industrial East than like that of the planting South.
Moreover, the Western states produced some important raw materials for
American factories, which called for protection against foreign
competition, notably, wool, hemp, and flax. As the South had little or
no foreign competition in cotton and tobacco, the East could not offer
protection for her raw materials in exchange for protection for
industries. With the West, however, it became possible to establish
reciprocity in tariffs; that is, for example, to trade a high rate on
wool for a high rate on textiles or iron.
Public-domain text, read in full here on John Shaqi.
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