1829 Andrew Jackson - Reducing Tariffs on Coffee

In 1829, President Andrew Jackson had to do something to placate the outcries of the Southern states over high tariffs without abandoning the policy of protecting American industry.   Northerners were complaining that the tariff had failed to protect industry, while the farmers were complaining of infringement on states' rights.   Jackson saw Coffee and Tea as the answer.  By reducing the tariffs on items that were so very popular with all the classes, Jackson was extending an olive branch to both the North and the South in hopes that it would buy some time for the tariffs to show some positive returns.

The Tariff of 1828, known as the tariff of abominations instituted a system of minimum duties on products according to their value with the intent to protect domestic manufacturing without the impact of undervaluation caused by flat duties.  Unfortunately, the tariff failed to win over neither the manufacturers who argued it failed to protect their industry, nor the producers/farmers.  Many argued that while the duties were ad valorem  or graduated in form, they were specific in fact and had all the disadvantages of both with none of the redeeming features of either.  Nevertheless, the Tariff went into effect on July 30, 1828 and by October, the opponents were crying out that extensive frauds were being perpetrated on the people, and that the tariff was failing to meet its objectives.   By time, President Andrew Jackson delivered his first State of the Union speech, the cries hit a fever speech and had become wide-spread across the nation.  The country was beginning down the road of nullification.   There were already law makers in South Carolina declaring the tariff of 1828 as being unconstitutional prompting John Calhoun of South Carolina to write a 35,000-word report known as his "Exposition and Protest".  It was not just South Carolina, but Georgia, Virginia and North Carolina that also denounced the tariff, and stated their intent to adopt the principle of nullification.   Alabama also denounced the tariff, but not nullification as they recognized the right of Congress to levy revenue duties.

President Jackson could not ignore these cries, and had to speak out about the tariff of abominations and what Congress needed to do about it.  In his first State of the Union, he introduced the subject by first addressing the concerns of both the farmers and the manufactures.   He tried to calm their fears by suggesting that in the last several months there had not been considerable change to the condition "of either our agriculture, commerce, or manufactures."   Jackson suggested that the impact of the tariff had not proved to be as injurious to either commerce or manufacturers as many had anticipated.  On the other hand, because imports did not decrease while production of agriculture exceeded far beyond that which could be domestically consumed, Jackson admitted that the country did see lower prices and temporary or partial disruption of trade.  Jackson, nonetheless remained hopeful and argued that because of the prudent management of our manufacturing systems and capital, the nation's industry would surely survive this shock and in the end still turn a profit.

"No very considerable change has occurred during the recess of Congress in the condition of either our agriculture, commerce, or manufactures. The operation of the tariff has not proved so injurious to the two former or as beneficial to the latter as was anticipated. Importations of foreign goods have not been sensibly diminished, while domestic competition, under an illusive excitement, has increased the production much beyond the demand for home consumption. The consequences have been low prices, temporary embarrassment, and partial loss. That such of our manufacturing establishments as are based upon capital and are prudently managed will survive the shock and be ultimately profitable there is no good reason to doubt."

Then, turning to the role of Congress, Jackson reminded them that one of their most difficult tasks is to "promote equally the prosperity of these three cardinal interests (agriculture, manufacturing, commerce)."   Jackson explained that in a perfect world the complicated and disruptive restrictions could be eliminated, but due to the "selfish legislation in other nations", it was imperative that US laws were devised in such a way that the impact of trade restrictions could be reduced and "harmonize the conflicting interests of our agriculture, our commerce, and our manufactures."

"To regulate its conduct so as to promote equally the prosperity of these three cardinal interests is one of the most difficult tasks of Government; and it may be regretted that the complicated restrictions which now embarrass the intercourse of nations could not by common consent be abolished, and commerce allowed to flow in those channels to which individual enterprise, always its surest guide, might direct it. But we must ever expect selfish legislation in other nations, and are therefore compelled to adapt our own to their regulations in the manner best calculated to avoid serious injury and to harmonize the conflicting interests of our agriculture, our commerce, and our manufactures. Under these impressions I invite your attention to the existing tariff, believing that some of its provisions require modification."

Jackson's general rule of thumb was to tie the duties foreign produce or manufactured items in a graduated manner so that our domestic produce and manufacturers would be on an even footing with other nations.   During times of war, this could be taken a step further to give preferential treatment to those domestic goods needed to support our defenses and military.   At all times, Congress should proceed with utmost caution and avoid frequent legislation specific to any branch of industry to avoid the dangers of speculators and special interests who might seek to profit off of such legislation.  When deliberating on "these interesting subjects", special interests or regional interests should be put aside, and the focus should be on what is best for the nation as a whole.   Any attempt to assuage one party or another should be avoided, and decisions must not be political but based on purer motives.  Congress must discard all "calculations of political ascendancy" and work together with members from every region to ensure that burdens are equally shared.  It was a very tall order back then as it is today.

"The general rule to be applied in graduating the duties upon articles of foreign growth or manufacture is that which will place our own in fair competition with those of other countries; and the inducements to advance even a step beyond this point are controlling in regard to those articles which are of primary necessity in time of war. When we reflect upon the difficulty and delicacy of this operation, it is important that it should never be attempted but with the utmost caution. Frequent legislation in regard to any branch of industry, affecting its value, and by which its capital may be transferred to new channels, must always be productive of hazardous speculation and loss.
In deliberating, therefore, on these interesting subjects local feelings and prejudices should be merged in the patriotic determination to promote the great interests of the whole. All attempts to connect them with the party conflicts of the day are necessarily injurious, and should be discountenanced. Our action upon them should be under the control of higher and purer motives. Legislation subjected to such influences can never be just, and will not long retain the sanction of a people whose active patriotism is not bounded by sectional limits nor insensible to that spirit of concession and forbearance which gave life to our political compact and still sustains it. Discarding all calculations of political ascendancy, the North, the South, the East, and the West should unite in diminishing any burthen of which either may justly complain."

Jackson, then turned his attention to the special needs of American farmers, by reminding Congress that the agricultural interest of our country is core to the well-being of the nation and thus required their particular attention.  It was not just for the sake of protecting our farmers, but rather the "fostering care of the Government" is needed when manufactures and commerce consume our domestic agricultural products and use them to improve the standard of living for all Americans. 

"The agricultural interest of our country is so essentially connected with every other and so superior in importance to them all that it is scarcely necessary to invite to it your particular attention. It is principally as manufactures and commerce tend to increase the value of agricultural productions and to extend their application to the wants and comforts of society that they deserve the fostering care of Government."

With that Jackson proposed what he hoped would be a quick win for the nation.  Jackson suggested that soon, the "sinking fund" or debt-repayment would longer be required and some of the tariffs could be removed.   The first tariffs to be removed should be on those imports that do not directly compete with any of our productions, most notably tea and coffee. Tea and Coffee was widely consumed across the nation, and in Jackson's words had become "articles of necessity to all classes".   Reducing the tariffs on tea and coffee would be viewed as a common benefit, so long as it is done in a deliberate and gradual manner.   Jackson saw it as an opportunity to ease the burdens of the people across the nation, in hopes that it might buy some time for the advantages of the tariffs to materialize.

"Looking forward to the period, not far distant, when a sinking fund will no longer be required, the duties on those articles of importation which can not come in competition with our own productions are the first that should engage the attention of Congress in the modification of the tariff. Of these, tea and coffee are the most important. They enter largely into the consumption of the country, and have become articles of necessity to all classes. A reduction, therefore, of the existing duties will be felt as a common benefit, but like all other legislation connected with commerce, to be efficacious and not injurious it should be gradual and certain.

In 1830, Congress passed separate bills to reduce the taxes on salt, molasses, coffee, cocoa, and tea, but the debate over tariffs continued to rage on.

References

Presidency.ucsb.edu. (2018). Andrew Jackson: First Annual Message. [online] Available at: http://www.presidency.ucsb.edu/ws/index.php?pid=29471 [Accessed 12 Oct. 2018].

Harding, S. (1895). The "Minimum" Principle in the Tariff of I828 and Its Recent Revival. The ANNALS of the American Academy of Political and Social Science, [online] 6(1), pp.100-103. Available at: www.jstor.org/stable/1009093.

Sumner, W. (1888). Andrew Jackson. Boston: Houghton, Mifflin, p.218.

Wagner, D. (2018). 1828 John Quincy Adams - Nullification and the Oedipus Prophesy. [online] Stateoftheunionhistory.com. Available at: http://www.stateoftheunionhistory.com/2018/08/1828-john-quincy-adams-nullification.html [Accessed 12 Oct. 2018].