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CHAPTER XIII.
THE TARIFF, AND AMERICAN SYSTEM

The revision of the Tariff, with a view to the protection of home industry, and to the establishment of what was then called, "The American System," was one of the large subjects before Congress at the session 1823-24, and was the regular commencement of the heated debates on that question which afterwards ripened into a serious difficulty between the federal government and some of the southern States. The presidential election being then depending, the subject became tinctured with party politics, in which, so far as that ingredient was concerned, and was not controlled by other considerations, members divided pretty much on the line which always divided them on a question of constructive powers. The protection of domestic industry not being among the granted powers, was looked for in the incidental; and denied by the strict constructionists to be a substantive power, to be exercised for the direct purpose of protection; but admitted by all at that time, and ever since the first tariff act of 1789, to be an incident to the revenue raising power, and an incident to be regarded in the exercise of that power. Revenue the object, protection the incident, had been the rule in the earlier tariffs: now that rule was sought to be reversed, and to make protection the object of the law, and revenue the incident. The revision, and the augmentation of duties which it contemplated, turned, not so much on the emptiness of the treasury and the necessity for raising money to fill it, as upon the distress of the country, and the necessity of creating a home demand for labor, provisions and materials, by turning a larger proportion of our national industry into the channel of domestic manufactures. Mr. Clay, the leader in the proposed revision, and the champion of the American System, expressly placed the proposed augmentation of duties on this ground; and in his main speech upon the question, dwelt upon the state of the country, and gave a picture of the public distress, which deserves to be reproduced in this View of the working of our government, both as the leading argument for the new tariff, and as an exhibition of a national distress, which those who were not cotemporary with the state of things which he described, would find it difficult to conceive or to realize. He said:

"In casting our eyes around us, the most prominent circumstance which fixes our attention and challenges our deepest regret, is the general distress which pervades the whole country. It is forced upon us by numerous facts of the most incontestable character. It is indicated by the diminished exports of native produce; by the depressed and reduced state of our foreign navigation; by our diminished commerce; by successive unthreshed crops of grain perishing in our barns for want of a market; by the alarming diminution of the circulating medium; by the numerous bankruptcies; by a universal complaint of the want of employment, and a consequent reduction of the wages of labor; by the ravenous pursuit after public situations, not for the sake of their honors, and the performance of their public duties, but as a means of private subsistence; by the reluctant resort to the perilous use of paper money; by the intervention of legislation in the delicate relation between debtor and creditor; and, above all, by the low and depressed state of the value of almost every description of the whole mass of the property of the nation, which has, on an average, sunk not less than about fifty per centum within a few years. This distress pervades every part of the Union, every class of society; all feel it, though it may be felt, at different places, in different degrees. It is like the atmosphere which surrounds us: all must inhale it, and none can escape from it. A few years ago, the planting interest consoled itself with its happy exemptions from the general calamity; but it has now reached this interest also, which experiences, though with less severity, the general suffering. It is most painful to me to attempt to sketch, or to dwell on the gloom of this picture. But I have exaggerated nothing. Perfect fidelity to the original would have authorized me to have thrown on deeper and darker hues."

Mr. Clay was the leading speaker on the part of the bill in the House of Representatives, but he was well supported by many able and effective speakers – by Messrs. Storrs, Tracy, John W. Taylor, from New-York; by Messrs. Buchanan, Todd, Ingham, Hemphill, Andrew Stewart, from Pennsylvania; by Mr. Louis McLane, from Delaware; by Messrs. Buckner F. Johnson, Letcher, Metcalfe, Trimble, White Wickliffe, from Kentucky; by Messrs. Campbell, Vance, John W. Wright, Vinton, Whittlesey, from Ohio; Mr. Daniel P. Cook, from Illinois.

Mr. Webster was the leading speaker on the other side, and disputed the universality of the distress which had been described; claiming exemption from it in New England; denied the assumed cause for it where it did exist, and attributed it to over expansion and collapse of the paper system, as in Great Britain, after the long suspension of the Bank of England; denied the necessity for increased protection to manufactures, and its inadequacy, if granted, to the relief of the country where distress prevailed; and contested the propriety of high or prohibitory duties, in the present active and intelligent state of the world, to stimulate industry and manufacturing enterprise. He said:

"Within my own observation, there is no cause for such gloomy and terrifying a representation. In respect to the New England States, with the condition of which I am best acquainted, they present to me a period of very general prosperity. Supposing the evil then to be a depression of prices, and a partial pecuniary pressure; the next inquiry is into the causes of that evil. A depreciated currency existed in a great part of the country – depreciated to such a degree as that, at one time, exchange between the centre and the north was as high as twenty per cent. The Bank of the United States was instituted to correct this evil; but, for causes which it is not now necessary to enumerate, it did not for some years bring back the currency of the country to a sound state. In May, 1819, the British House of Commons, by an unanimous vote, decided that the resumption of cash payments by the Bank of England should not be deferred beyond the ensuing February (it had then been in a state of suspension near twenty-five years). The paper system of England had certainly communicated an artificial value to property. It had encouraged speculation, and excited overtrading. When the shock therefore came, and this violent pressure for money acted at the same moment on the Continent and in England, inflated and unnatural prices could be kept up no longer. A reduction took place, which has been estimated to have been at least equal to a fall of thirty, if not forty, per cent. The depression was universal; and the change was felt in the United States severely, though not equally so in every part of them. About the time of these foreign events, our own bank system underwent a change; and all these causes, in my view of the subject, concurred to produce the great shock which took place in our commercial cities, and through many parts of the country. The year 1819 was a year of numerous failures, and very considerable distress, and would have furnished far better grounds than exist at present for that gloomy representation which has been presented. Mr. Speaker (Clay) has alluded to the strong inclination which exists, or has existed, in various parts of the country, to issue paper money, as a proof of great existing difficulties. I regard it rather as a very productive cause of those difficulties; and we cannot fail to observe, that there is at this moment much the loudest complaint of distress precisely where there has been the greatest attempt to relieve it by a system of paper credit. Let us not suppose that we are beginning the protection of manufactures by duties on imports. Look to the history of our laws; look to the present state of our laws. Consider that our whole revenue, with a trifling exception, is collected from the custom-house, and always has been; and then say what propriety there is in calling on the government for protection, as if no protection had heretofore been afforded. On the general question, allow me to ask if the doctrine of prohibition, as a general doctrine, be not preposterous? Suppose all nations to act upon it: they would be prosperous, then, according to the argument, precisely in the proportion in which they abolished intercourse with one another. The best apology for laws of prohibition and laws of monopoly, will be found in that state of society, not only unenlightened, but sluggish, in which they are most generally established. Private industry in those days, required strong provocatives, which government was seeking to administer by these means. Something was wanted to actuate and stimulate men, and the prospects of such profits as would, in our times, excite unbounded competition, would hardly move the sloth of former ages. In some instances, no doubt, these laws produced an effect which, in that period, would not have taken place without them. (Instancing the protection to the English woollen manufactures in the time of the Henrys and the Edwards). But our age is wholly of a different character, and its legislation takes another turn. Society is full of excitement: competition comes in place of monopoly; and intelligence and industry ask only for fair play and an open field."

With Mr. Webster were numerous and able speakers on the side of free trade: From his own State, Mr. Baylies; from New-York, Mr. Cambreling; from Virginia, Messrs. Randolph, Philip P. Barbour, John S. Barbour, Garnet, Alexander Smythe, Floyd, Mercer, Archer, Stevenson, Rives, Tucker, Mark Alexander; from North Carolina, Messrs. Mangum, Saunders, Spaight, Lewis Williams, Burton, Weldon N. Edwards; from South Carolina, Messrs. McDuffie, James Hamilton, Poinsett; from Georgia, Messrs. Forsyth, Tatnall, Cuthbert, Cobb; from Tennessee, Messrs. Blair, Isaaks, Reynolds; from Louisiana, Mr. Edward Livingston; from Alabama, Mr. Owen; from Maryland, Mr. Warfield; from Mississippi, Mr. Christopher Rankin.

The bill was carried in the House, after a protracted contest of ten weeks, by the lean majority of five – 107 to 102 – only two members absent, and the voting so zealous that several members were brought in upon their sick couches. In the Senate the bill encountered a strenuous resistance. Mr. Edward Lloyd, of Maryland, moved to refer it to the committee on finance – a motion considered hostile to the bill; and which was lost by one vote – 22 to 23. It was then, on the motion of Mr. Dickerson, of New Jersey, referred to the committee on manufactures; a reference deemed favorable to the bill, and by which committee it was soon returned to the Senate without any proposed amendment. It gave rise to a most earnest debate, and many propositions of amendment, some of which, of slight import, were carried. The bill itself was carried by the small majority of four votes – 25 to 21. The principal speakers in favor of the bill were: Messrs. Dickerson, of New Jersey; D'Wolf, of Rhode Island; Holmes, of Maine; E. M. Johnson, of Kentucky; Lowrie, of Pennsylvania; Talbot, of Kentucky; Van Buren. Against it the principal speakers were: Messrs. James Barbour and John Taylor, of Virginia (usually called John Taylor of Caroline); Messrs. Branch, of North Carolina; Hayne, of South Carolina; Henry Johnson and Josiah Johnston, of Louisiana; Kelly and King, of Alabama; Rufus King, of New-York; James Lloyd, of Massachusetts; Edward Lloyd and Samuel Smith, of Maryland; Macon, of North Carolina; Van Dyke, of Delaware. The bill, though brought forward avowedly for the protection of domestic manufactures, was not entirely supported on that ground. An increase of revenue was the motive with some, the public debt being still near ninety millions, and a loan of five millions being authorized at that session. An increased protection to the products of several States, as lead in Missouri and Illinois, hemp in Kentucky, iron in Pennsylvania, wool in Ohio and New-York, commanded many votes for the bill; and the impending presidential election had its influence in its favor. Two of the candidates, Messrs. Adams and Clay, were avowedly for it; General Jackson, who voted for the bill, was for it, as tending to give a home supply of the articles necessary in time of war, and as raising revenue to pay the public debt. Mr. Crawford was opposed to it; and Mr. Calhoun had been withdrawn from the list of presidential candidates, and become a candidate for the Vice-Presidency. The Southern planting States were extremely dissatisfied with the passage of the bill, believing that the new burdens upon imports which it imposed fell upon the producers of the exports, and tended to enrich one section of the Union at the expense of another. The attack and support of the bill took much of a sectional aspect; Virginia, the two Carolinas, Georgia, and some others being nearly unanimous against it. Pennsylvania, New-York, Ohio, Kentucky being nearly unanimous for it. Massachusetts, which up to this time had a predominating interest in commerce, voted all, except one member, against it. With this sectional aspect, a tariff for protection also began to assume a political aspect, being taken under the care of the party since discriminated as Whig, which drew from Mr. Van Buren a sagacious remark, addressed to the manufacturers themselves; that if they suffered their interests to become identified with a political party (any one), they would share the fate of that party, and go down with it whenever it sunk. Without the increased advantages to some States, the pendency of the presidential election, and the political tincture which the question began to receive, the bill would not have passed – so difficult is it to prevent national legislation from falling under the influence of extrinsic and accidental causes. The bill was approved by Mr. Monroe – a proof that that careful and strict constructionist of the Constitution did not consider it as deprived of its revenue character by the degree of protection which it extended.

CHAPTER XIV.
THE A. B. PLOT

On Monday, the 19th of April, the Speaker of the House (Mr. Clay) laid before that body a note just received from Ninian Edwards, Esq., late Senator in Congress, from Illinois, and then Minister to Mexico, and then on his way to his post, requesting him to present to the House a communication which accompanied the note, and which charged illegalities and misconduct on the Secretary of the Treasury, Mr. William H. Crawford. The charges and specifications, spread through a voluminous communication, were condensed at its close into six regular heads of accusation, containing matter of impeachment; and declaring them all to be susceptible of proof, if the House would order an investigation. The communication was accompanied by ten numbers of certain newspaper publications, signed A. B., of which Mr. Edwards avowed himself to be the author, and asked that they might be received as a part of his communication, and printed along with it, and taken as the specifications under the six charges. Mr. Crawford was then a prominent candidate for the Presidency, and the A. B. papers, thus communicated to the House, were a series of publications made in a Washington City paper, during the canvass, to defeat his election, and would doubtless have shared the usual fate of such publications, and sunk into oblivion after the election was over, had it not been for this formal appeal to the House (the grand inquest of the nation) and this call for investigation. The communication, however, did not seem to contemplate an early investigation, and certainly not at the then session of Congress. Congress was near its adjournment; the accuser was on his way to Mexico; the charges were grave; the specifications under them numerous and complex; and many of them relating to transactions with the remote western banks. The evident expectation of the accuser was, that the matter would lie over to the next session, before which time the presidential election would take place, and all the mischief be done to Mr. Crawford's character, resulting from unanswered accusations of so much gravity, and so imposingly laid before the impeaching branch of Congress. The friends of Mr. Crawford saw the necessity of immediate action; and Mr. Floyd of Virginia, instantly, upon the reading of the communication, moved that a committee be appointed to take it into consideration, and that it be empowered to send for persons and papers – to administer oaths – take testimony – and report it to the House; with leave to sit after the adjournment, if the investigation was not finished before; and publish their report. The committee was granted, with all the powers asked for, and was most unexceptionably composed by the speaker (Mr. Clay); a task of delicacy and responsibility, the Speaker being himself a candidate for the Presidency, and every member of the House a friend to some one of the candidates, including the accused. It consisted of Mr. Floyd, the mover; Mr. Livingston, of Louisiana; Mr. Webster, of Massachusetts; Mr. Randolph, of Virginia; Mr. J. W. Taylor, of New-York; Mr. Duncan McArthur, of Ohio; and Mr. Owen, of Alabama.

The sergeant-at-arms of the House was immediately dispatched by the committee in pursuit of Mr. Edwards: overtook him at fifteen hundred miles; brought him back to Washington; but did not arrive until Congress had adjourned. In the mean time, the committee sat, and received from Mr. Crawford his answer to the six charges: an answer pronounced by Mr. Randolph to be "a triumphant and irresistible vindication; the most temperate, passionless, mild, dignified, and irrefragable exposure of falsehood that ever met a base accusation; and without one harsh word towards their author." This was the true character of the answer; but Mr. Crawford did not write it. He was unable at that time to write any thing. It was written and read to him as it went on, by a treasury clerk, familiar with all the transactions to which the accusations related – Mr. Asbury Dickens, since secretary of the Senate. This Mr. Crawford told himself at the time, with his accustomed frankness. His answer being mentioned by a friend, as a proof that his paralytic stroke had not affected his strength, he replied, that was no proof – that Dickens wrote it. The committee went on with the case (Mr. Edwards represented by his son-in-law, Mr. Cook), examined all the evidence in their reach, made a report unanimously concurred in, and exonerating Mr. Crawford from every dishonorable or illegal imputation. The report was accepted by the House; but Mr. Edwards, having far to travel on his return journey, had not yet been examined; and to hear him the committee continued to sit after Congress had adjourned. He was examined fully, but could prove nothing; and the committee made a second report, corroborating the former, and declaring it as their unanimous opinion – the opinion of every one present – "that nothing had been proved to impeach the integrity of the Secretary, or to bring into doubt the general correctness and ability of his administration of the public finances."

The committee also reported all the testimony taken, from which it appeared that Mr. Edwards himself had contradicted all the accusations in the A. B. papers; had denied the authorship of them; had applauded the conduct of Mr. Crawford in the use of the western banks, and their currency in payment of the public lands, as having saved farmers from the loss of their homes; and declared his belief, that no man in the government could have conducted the fiscal and financial concerns of the government with more integrity and propriety than he had done. This was while his nomination as minister to Mexico was depending in the Senate, and to Mr. Noble, a Senator from Indiana, and a friend to Mr. Crawford. He testified:

"That he had had a conversation with Mr. Edwards, introduced by Mr. E. himself, concerning Mr. Crawford's management of the western banks, and the authorship of the A. B. letters. That it was pending his nomination made by the President to the Senate, as minister to Mexico. He (Mr. E.) stated that he was about to be attacked in the Senate, for the purpose of defeating his nomination: that party and political spirit was now high; that he understood that charges would be exhibited against him, and that it had been so declared in the Senate. He further remarked, that he knew me to be the decided friend of William H. Crawford, and said, I am considered as being his bitter enemy; and I am charged with being the author of the numbers signed A. B.; but (raising his hand) I pledge you my honor, I am not the author, nor do I know who the author is. Crawford and I, said Mr. Edwards, have had a little difference; but I have always considered him a high-minded, honorable, and vigilant officer of the government. He has been abused about the western banks and the unavailable funds. Leaning forward, and extending his hand, he added, now damn it, you know we both live in States where there are many poor debtors to the government for lands, together with a deranged currency. The notes on various banks being depreciated, after the effect and operation of the war in that portion of the Union, and the banks, by attempting to call in their paper, having exhausted their specie, the notes that were in circulation became of little or no value. Many men of influence in that country, said he, have united to induce the Secretary of the Treasury to select certain banks as banks of deposit, and to take the notes of certain banks in payment for public land. Had he (Mr. Crawford) not done so, many of our inhabitants would have been turned out of doors, and lost their land; and the people of the country would have had a universal disgust against Mr. Crawford. And I will venture to say, said Mr. Edwards, notwithstanding I am considered his enemy, that no man in this government could have managed the fiscal and financial concerns of the government with more integrity and propriety than Mr. Crawford did. He (Mr. Noble) had never repeated this conversation to any body until the evening of the day that I (he) was informed that Gov. Edwards' 'address' was presented to the House of Representatives. On that evening, in conversation with several members of the House, amongst whom were Mr. Reid and Mr. Nelson, some of whom said that Governor Edwards had avowed himself to be the author of A. B., and others said that he had not done so, I remarked, that they must have misunderstood the 'address,' for Gov. Edwards had pledged his honor to me that he was not the author of A. B."

Other witnesses testified to his denials, while the nomination was depending, of all authorship of these publications: among them, the editors of the National Intelligencer, – friends to Mr. Crawford. Mr. Edwards called at their office at that time (the first time he had been there within a year), to exculpate himself from the imputed authorship; and did it so earnestly that the editors believed him, and published a contradiction of the report against him in their paper, stating that they had a "good reason" to know that he was not the author of these publications. That "good reason," they testified, was his own voluntary denial in this unexpected visit to their office, and his declarations in what he called a "frank and free" conversation with them on the subject. Such testimony, and the absence of all proof on the other side, was fatal to the accusations, and to the accuser. The committee reported honorably and unanimously in favor of Mr. Crawford; the Congress and the country accepted it; Mr. Edwards resigned his commission, and disappeared from the federal political theatre: and that was the end of the A. B. plot, which had filled some newspapers for a year with publications against Mr. Crawford, and which might have passed into oblivion, as the current productions and usual concomitants of a Presidential canvass, had it not been for their formal communication to Congress as ground of impeachment against a high officer. That communication carried the "six charges," and their ten chapters of specifications, into our parliamentary history, where their fate becomes one of the instructive lessons which it is the province of history to teach. The newspaper in which the A. B. papers were published, was edited by a war-office clerk, in the interest of the war Secretary (Mr. Calhoun), to the serious injury of that gentleman, who received no vote in any State voting for Mr. Crawford.