Some Results of the American Civil War Part 2

The Triumph of Industry. The wreck of the planting system was
accompanied by a mighty upswing of Northern industry which made the old
Whigs of Massachusetts and Pennsylvania stare in wonderment. The demands
of the federal government for manufactured goods at unrestricted prices
gave a stimulus to business which more than replaced the lost markets of
the South. Between 1860 and 1870 the number of manufacturing
establishments increased 79.6 per cent as against 14.2 for the previous
decade; while the number of persons employed almost doubled. There was
no doubt about the future of American industry.

The Victory for the Protective Tariff. Moreover, it was henceforth to
be well protected. For many years before the war the friends of
protection had been on the defensive. The tariff act of 1857 imposed
duties so low as to presage a tariff for revenue only. The war changed
all that. The extraordinary military expenditures, requiring heavy taxes
on all sources, justified tariffs so high that a follower of Clay or
Webster might well have gasped with astonishment. After the war was over
the debt remained and both interest and principal had to be paid.
Protective arguments based on economic reasoning were supported by a
plain necessity for revenue which admitted no dispute.

A Liberal Immigration Policy. Linked with industry was the labor
supply. The problem of manning industries became a pressing matter, and
Republican leaders grappled with it. In the platform of the Union party
adopted in 1864 it was declared "that foreign immigration, which in the
past has added so much to the wealth, the development of resources, and
the increase of power to this nation--the asylum of the oppressed of all
nations--should be fostered and encouraged by a liberal and just
policy." In that very year Congress, recognizing the importance of the
problem, passed a measure of high significance, creating a bureau of
immigration, and authorizing a modified form of indentured labor, by
making it legal for immigrants to pledge their wages in advance to pay
their passage over. Though the bill was soon repealed, the practice
authorized by it was long continued. The cheapness of the passage
shortened the term of service; but the principle was older than the
days of William Penn.

The Homestead Act of 1862. In the immigration measure guaranteeing a
continuous and adequate labor supply, the manufacturers saw an offset to
the Homestead Act of 1862 granting free lands to settlers. The Homestead
law they had resisted in a long and bitter congressional battle.
Naturally, they had not taken kindly to a scheme which lured men away
from the factories or enabled them to make unlimited demands for higher
wages as the price of those remaining. Southern planters likewise had feared
free homesteads for the very good reason that they only promised to add to the overbalancing power of the North.

In spite of the opposition, supporters of a liberal land policy made
steady gains. Free-soil Democrats,--Jacksonian farmers and
mechanics,--labor reformers, and political leaders, like Stephen A.
Douglas of Illinois and Andrew Johnson of Tennessee, kept up the
agitation in season and out. More than once were they able to force a
homestead bill through the House of Representatives only to have it
blocked in the Senate where Southern interests were intrenched. Then,
after the Senate was won over, a Democratic President, James Buchanan,
vetoed the bill. Still the issue lived. The Republicans, strong among
the farmers of the Northwest, favored it from the beginning and pressed
it upon the attention of the country. Finally the manufacturers yielded;
they received their compensation in the contract labor law. In 1862
Congress provided for the free distribution of land in 160-acre lots
among men and women of strong arms and willing hearts ready to build
their serried lines of homesteads to the Rockies and beyond.