The United States of America, Part 1: 1783-1830Sparks, Edwin Erle
History
The United States of America, Part 1: 1783-1830
Sparks, Edwin Erle
United States -- History
No one at this time seemed to feel the potency of the protective
principle in enlarging the power of the Union. It was unseen until
fully developed some thirty years later. Yet to appreciate the full
force of this tariff bill of July 4, 1789, with its protective preamble,
as a sample of Union-making legislation, one need only consider the
gratitude which the National Government has won through such protective
measures; the attachment of leading men to the Union from guarding
their interests; the accumulated strength of moneyed interests in time
of danger to the Republic; the use made of the tariff in protecting
workingmen; the revenue derived from high tariffs, which has been spent
on public improvements; and the force of public opinion which has been
frequently rallied by both employer and employee to the support of the
execution of a national revenue law.
Above all members of the first administration, Hamilton stood for an
efficient National Government. He saw opportunity in the administration
and interpretation of the written document to correct the weak places
which he had sought in vain to avoid when the frame was being made.
A constructive genius by birth, a financier by study, a leader of men
by nature, Hamilton had, in the Treasury Department, that function of
the new Government which needed the most strengthening, and in its
present condition the necessity which would support the strongest
measures. Called upon by Congress at the time of its first adjournment
to inform them of the exact financial condition of the country, he
drew up an exhaustive report showing that the National and State
governments together owed something like fifty-two millions of dollars.
The national obligation to-day is twenty times that sum. Its proportion
to eighty millions of people is not much less than the fifty-two
millions were to the three and a half millions of people who faced the
debt of Hamilton's time. But the debt now is of fixed form and assured
payment before it is incurred. The debt which Hamilton presented to
Congress was heterogeneous in form and without means of payment. Arguing
that a national debt properly funded had contributed largely to the
prosperity of Great Britain, Hamilton proposed to collect all these
evidences of debt into a national obligation, which would bring interest
to its holders until paid. The faith of the United States toward its
creditors must be redeemed. To secure a revenue with which to pay this
interest and evidently to redeem the principal in addition to meeting
the running expenses of the Government was the first task. Hamilton
proposed to place additional duties on imported goods and to lay a
tonnage on vessels using American ports, the latter of which he
estimated would yield more than a million dollars. He would also put
an excise on distilled spirits manufactured in the United States and
on those imported, both bringing in nearly three million dollars. The
Public-domain text, read in full here on John Shaqi.
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