Printed Page 497 Chapter Chronology

The Tariff and the Politics of Protection. The tariff became a potent political issue in the 1880s. The concept of a protective tariff to raise the price of imported goods and stimulate American industry dated back to the founding days of the Republic. Republicans turned the tariff to political ends in 1861 by enacting a measure that both raised revenues for the Civil War and rewarded their industrial supporters, who wanted protection from foreign competition. After the war, the pro-business Republicans continued to raise the tariff. Manufactured goods such as steel and textiles, and some agricultural products, including sugar and wool, benefited from protection. Most farm products, notably wheat and cotton, did not. By the 1880s, the tariff produced more than $2.1 billion in revenue. Not only did the high tariff pay off the nation's Civil War debt and fund pensions for Union soldiers, but it also created a huge surplus that sat idly in the Treasury's vaults while the government argued about how (or even whether) to spend it.

To many Americans, particularly southern and midwestern farmers who sold their crops in a world market but had to buy goods priced artificially high because of the protective tariff, the answer was simple: Reduce the tariff. But the Republican Party seized on the tariff question to forge a new national coalition. "Fold up the bloody shirt and lay it away," Blaine advised a colleague in 1880. "It's of no use to us. You want to shift the main issue to protection." By encouraging an alliance among industrialists, labor, and western producers of raw materials — groups seen to benefit from the tariff — Blaine hoped to solidify the North, Midwest, and West against the solidly Democratic South. Although the tactic failed for Blaine in the presidential election of 1884, it worked for the Republicans four years later.

Cleveland, who had straddled the tariff issue in the election of 1884, startled the nation in 1887 by calling for tariff reform. The president attacked the tariff as a tax levied on American consumers by powerful industries. And he pointed out that high tariffs impeded the expansion of American markets abroad at a time when American industries needed to expand. The Republicans countered by arguing that "tariff tinkering" would only unsettle prosperous industries, drive down wages, and shrink the farmers' home market. Republican Benjamin Harrison, who supported the high tariff, ousted Cleveland from the White House in 1888, carrying all the western and northern states except Connecticut and New Jersey.

Back in power, the Republicans brazenly passed the highest tariff in the nation's history in 1890. The new tariff, sponsored by Republican representative William McKinley of Ohio, stirred up a hornet's nest of protest across the United States. The American people had elected Harrison to preserve protection but not to enact a higher tariff. Democrats condemned the McKinley tariff and labeled the Republican Congress that passed it the "Billion Dollar Congress" for its carnival of spending, which depleted the nation's surplus by enacting a series of pork barrel programs shamelessly designed to bring federal money to congressmen's constituencies. In the congressional election of 1890, angry voters swept the hapless Republicans, including tariff sponsor McKinley, out of office. Two years later, Harrison himself was defeated, and Grover Cleveland returned to the White House. Such were the changes in the political winds whipped up by the tariff issue.

Controversy over the tariff masked deeper divisions in American society. Conflict between workers and farmers on the one side and bankers and corporate giants on the other erupted throughout the 1880s and came to a head in the 1890s. Both sides in the tariff debate spoke to concern over class conflict when they insisted that their respective plans, whether McKinley's high tariff or Cleveland's tariff reform, would bring prosperity and harmony. For their part, many working people shared the sentiment voiced by one labor leader that the tariff was "only a scheme devised by the old parties to throw dust in the eyes of laboring men."