Page:Speeches, correspondence and political papers of Carl Schurz, Volume 5.djvu/77

Rh under a low tariff the clamor ceased, because they were satisfied with what they had.

But then a fateful change was brought on by stirring events.

The civil war broke out. The Republic was in danger. It could not be saved without a constant and abundant supply of money. In the special session of Congress of 1861 some additions to the import duties were still deemed sufficient to raise the necessary revenue. But in 1862 the real exigencies of the civil war dawned upon the public mind, and then we beheld some of the wildest experiments in taxation the world has ever seen. On July 1, 1862, an extensive system of internal taxes was adopted. Taxes were laid upon everything within sight,—on all sorts of manufactures, on incomes, on the gross receipts of corporations, licenses on callings and so on. The manufacturers cried out: “If you put taxes on our industrial products, on our receipts, on our incomes, how can we compete with the world under such burdens?” It was not pretended that the manufacturers needed further protection. Not at all. “If manufactures in the history of our government have been fostered,” said Mr. Morrill, “they are now the strongest pillars of our support. If we bleed manufacturers, we must see to it that the proper tonic is administered at the same time.” And Mr. Thaddeus Stevens said: “We intended to impose an additional duty on imports equal to the tax put upon the domestic article. It was done by way of compensation.” And the act of July 14, 1862, by which this was done, was entitled “An act increasing temporarily”—mark that word “temporarily”—“the duties on imports.” It was temporary compensation the manufacturers called for and received.

The fortunes of war were fickle. Abraham Lincoln had to call for new levies of men again and again. The needs of the Government grew more and more urgent.