Title: Tariff of 1816 - Wikipedia
Headings: Tariff of 1816
Tariff of 1816
Contents
US manufacturing advances in the Napoleonic Era
Post-War European threats and the rise of US economic nationalism
The Federal deficit and the tariff debate
The reasons for Southern support of the tariff
The passage of the tariff
The influence of détente on support for protection
The Panic of 1819 and the end of Southern protectionism
References
Bibliography
Cited in footnotes
External links

Content: In a move to recapture American markets, Great Britain proceeded to systematically flood the US markets with superior manufactured items at cut-rate prices, the aim of which was to drive American manufacturers out of business. These geostrategic and economic provocations caused a shift in domestic policy. The strict constructionist ideologists of the dominant Jeffersonian Republican Party – though averse to concentrating power into the hands of the federal government – recognized the expediency of nationalizing certain institutions and projects as a means of achieving national growth and economic security. In his Seventh Annual Message to the Fourteenth Congress on December 5, 1815, President James Madison suggested legislation to create 1) a national bank with regulatory powers 2) a program of federally funded internal improvements for roads and canals, and 3) a protective tariff to shelter emerging American manufacturing from the advanced industries in Europe. The Federal deficit and the tariff debate
In December 1815, Treasury Secretary Alexander J. Dallas presented a federal budget report to Congress projecting a substantial government deficit by the end of 1816. Though his budget figures were not in dispute, the means of raising the funds were, and proposals for direct or excise taxes were generally unpopular. Secretary Dallas called for a limited protective tariff on manufactures to forestall the deficit. His proposal provoked opposition from two economic sectors: commerce and agriculture. Commercial maritime centers in New England and the Mid-Atlantic states had anticipated a lucrative import and export exchange with the post-war reopening of European and global markets.