Outline of the development of the internal commerce of the United States: 1789-1900Van Metre, Thurman William
History
Outline of the development of the internal commerce of the United States: 1789-1900
Van Metre, Thurman William
United States -- Commerce -- History
Notwithstanding the revival of manufacturing and domestic trade, the
farmers of the grain states found themselves in distressing
circumstances. The Ohio Valley was yielding a product far in excess of
the demands that existed and each year found a large amount of
unmarketable grain left in the fields and granaries. Many foreign
nations refused admittance to American food products and though the
grain-growing capacity of the United States had increased sixfold since
1790, the annual exports of grain, meat and flour were but little more
than the average for the five years from 1790 to 1795. The plantations
of the South were drawing much of their subsistence from the northern
farms, but they were unable to absorb more than a small fraction of the
tremendous surplus that was seeking a market.
Agricultural interests sought urgently for relief. Since there was no
foreign market for their surplus, they resolved to _create_ a home
market. If England would not buy food products from the United States,
the United States must refuse to buy manufactures from England, and
must, by the establishment of manufacturing industries at home, give
rise to a non-agricultural population that would consume the redundant
supplies of meat and grain. The problem of attracting capital to
manufacturing enterprises, the farmers proposed to solve by the
creation of a system of protective tariffs that would check
importations and encourage investment in mills and factories at home.
Manufacturing industries already in existence were in no apparent need
of protection and the shipping interests of Boston and New York and the
cotton planters of the South strenuously opposed the protective policy.
But the agricultural interests were not to be denied. Under the
leadership of Henry Clay, the tariff of 1824 was enacted and the
"American System" was inaugurated. In 1828, in response to an appeal,
emanating from the woolen manufacturers and seconded by the
agricultural interests, still further encouragement was given to home
manufactures.
Public-domain text, read in full here on John Shaqi.
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