— Ch. 1 · Legislative Origins And Passage —
Morrill Tariff.
~6 min read · Ch. 1 of 6
The Morrill Tariff took effect one month after it was signed into law on the 2nd of March 1861. This date marked the final days of President James Buchanan's term as a Democrat. Representative Justin Smith Morrill of Vermont drafted the bill with advice from economist Henry Charles Carey. The House Ways and Means Committee had previously blocked similar efforts during the 35th Congress of 1857, 1859. John S. Phelps, a Democrat from Missouri, wrote a plan that retained most low rates from the Tariff of 1857. Morrill and Henry Winter Davis produced a Republican proposal to raise tariffs drastically. They replaced ad valorem schedules with specific duties on goods like iron and textiles. The bill passed the House on the 10th of May 1860, by a vote of 105 to 64. Republicans voted 89 to 2 for the measure. Seven northern Democrats joined them in support. Thirty-five southern Democrats and three Oppositionists voted against it. The Senate remained controlled by Democrats until seven southern states seceded in late 1860. Their senators withdrew from Congress, allowing Republicans to take control of the Finance Committee. Robert M. T. Hunter of Virginia lost his hold on the committee chairmanship. The bill reached the Senate floor on February 20 and passed 25 to 14. Twelve Senators abstained, including five Southern Democrats and two Republicans. Final approval came by unanimous consent on March 2.
Economic Rationale And Design
The tariff increased effective rates collected on dutiable imports by approximately 70% in its first year. Average American tariff rates had been around 17% overall between 1857 and 1860. The new schedule raised those averages to about 26% overall or 36% on dutiable items only. Morrill rejected traditional protection systems by proposing duties on agricultural products like sugar, wool, flaxseed, hides, beef, pork, corn, grain, hemp, and minerals. He also included coal, lead, copper, zinc, and other minerals produced by northwestern states. Eastern fishing industries received duties on dried, pickled, and salted fish. Henry C. Carey emphasized that the success of Lincoln's administration depended entirely on passing this bill. Carey warned that without it there would be much suffering among people and trouble for the Republican Party. Representative John Sherman later wrote that no national taxes except import duties were imposed at the time of passage. The change from ad valorem to specific duties allowed protectionists to set higher actual rates than before. Taussig noted that specific duties established by the act were considerably above the ad valorem duties of 1846. The most important direct changes involved increased duties on iron and wool. These increases aimed to attach Pennsylvania and some Western States to the Republican party.