The Civil War tariff revolt

 

The Nullification Crisis of 1832-33 involved state secession and use of force to repel attempts to collect federal customs tariffs. Nullification acquired a different shade of meaning even before the Supreme Court’s Dred Scott decision soon extended the reach of the Fugitive Slave Law north to the Canadian border. By 1860 Southern conservatives were complacently decrying “Nullification”–by which they meant the creation of sanctuary cities where slaves could hide.  Local authorities in the North worked only to enforce local and state laws–not to help persecute runaway slaves under odious federal jurisprudence.  

So why do government school history professors stand by and let charlatans convince the innocent that the Civil War was caused by racial collectivism? Andrew Jackson again addressed the Congress, in January 1833, regarding South Carolina’s virtual secession in a bill outlawing US customs from collecting Tariffs of Abominations.

That State Legislature first passed “An act to carry into effect, in part, an ordinance to nullify certain acts of the Congress of the United States purporting to be laws laying duties on the importation of foreign commodities,” passed in convention of this State, at Columbia, on the 24th November, 1832. The next was called “An act to provide for the security and protection of the people of the State of South Carolina.” It then passed “An act concerning the oath required by the ordinance passed in convention at Columbia on the 24th of November, 1832.” This last was an oath rejecting federal power in favor of state laws and courts. Jackson explained:

But by making it ” unlawful for any of the constituted authorities, whether of the United States or of the State, to enforce the laws for the payment of duties, and declaring that all judicial proceedings which shall be hereafter had in affirmance of the contracts made with purpose to secure the duties imposed by the said acts are and shall be held utterly null and void,” she has in effect abrogated the judicial tribunals within her limits in this respect, has virtually denied the United States access to the courts established by their own laws, and declared it unlawful for the judges to discharge those duties which they are sworn to perform.

One federal customs house was moved from from Charleston to Castle Pinckney as a “precaution,” and trusted customs agents who quit in fear could not be replaced, such was the nearness of armed confrontation.  Jackson spoke of the potential for military violence:

…the power of summoning the posse comitatus will compel, under the penalty of fine and imprisonment, every man over the age of 15, and able to travel, to turn out at the call of the sheriff, and with such weapons as may be necessary; and it may justify beating, and even killing, such as may resist. The use of the Posse comitatus is therefore a direct application of force, and can not be otherwise regarded than as the employment of the whole militia force of the county, and in an equally efficient form under a different name.

Jackson made it clear that federal troops would put down the insurrection unless Congress, the courts and the Carolina legislature acted to head off the danger. This they did by lowering the “Tariff of Abominations” that had sparked the reaction. Still, all hope of stopping “protective” tariff extortion within the system was doomed thanks to Jackson’s defusing of the situation.  Colonial “Acts of Navigation” had necessitated the 1st Revolution in 1776. This revolt led Lord Dunmore to issue an Emancipation Proclamation calling slaves to arms in exchange for freedom long before Lincoln’s similar proclamation.

The Opium Wars in which Great Britain attacked Chinese cities to force repeal of the Chinese government’s ban on opium grown in British India came to resumed naval artillery attacks in 1859. At the outset of these wars, in 1837, Britain had withdrawn capital invested in the United States to gird its navy for war. The resulting contraction of capital caused America’s First Great Depression, but to this day it is inexpedient and impolite to even mention this Chinese connection.

China was again defeated and a tariff on opium imports was enacted there in January 1860 to pay reparations to her attackers. Despite professed neutrality, the US also landed military forces in China. Cause had again produced effect. Thus, in a failing economy, the Morrill protective tariff was soon being assembled in Congress. It was reported in March 1860, passed on May 10, then went dormant.

The South reacted and by September the Secretary of War had quietly facilitated southern seizure of federal weapons and facilities. After the mild and Whiggish Lincoln was elected, with three months to go before taking office, Texans raided armories and commandeered revenue ships, sparking tariff revolt elsewhere.  Capital flight and foreign adventures had wrecked the economy, and the Secretary of the Treasury resigned December 10.

South Carolina seized a federal fort, customs-house and vessels that same December. In January, with Lincoln’s inauguration still two months away, Georgia seized two federal forts and an arsenal, then commandeered a steamer. Louisiana took over three forts and the arenal at Baton Rouge as Georgia seized the arsenal at Augusta and a steamer. Then Florida commandeered navy yards and an arsenal.

The Morrill tariff was revived, the embattled Treasury began selling notes, and John Sherman made a speech about federal tariffs, fort and armories. A secession convention was convened and northerners began backing away from support for sanctuary cities by repealing the Personal Liberty bill and similar enactments. William Tecumseh Sherman calculated the effect of reverting to a revenue-only tariff, dubbed “free trade” by Morrill and other protectionists:

“Now, if the south have free trade, how can you collect revenues in the eastern cities? Freight from New Orleans to St. Louis, Chicago, Louisville, Cincinnati, and even Pittsburg, would be about the same as by rail from New York, and importers at New Orleans, having no duties to pay, would undersell the east if they had to pay duties.”

This was what the Civil War was about–customs revenue and crony tariff protection.

Meekly disarmed colonial Brazilians had no such possibility, and imperial slavery continued there until after Cleveland’s first term–yet rabble of the looter persuasion do not order their statues torn down or accuse modern Brazilians of racial collectivism. Americana, the Confederate town founded by disaffected Johnny Rebs, holds charming square dances in gray regalia with nary a protest from unreconstructed brown audience members and participants. ALL of them are fed up with carpetbagger looter politicians and their damned taxes!  These politicians and their judges keep the Libertarian Party from forming, so locals–forced at gunpoint to vote–cast enough blank ballots to elect libertarian mayors in many major cities.

If you want Brazilian or American audiences to understand your theory on the roots of war or what causes economic depressions, you might consider hiring a degreed and accredited translator and interpreter.

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Economic Collapse, July 1930

Prohibition caused Depression

Chicago Tribune 17NOV1930

The stock market crash of 1929 marked the realization that prohibition laws would soon destroy the US economy and banking system. By mid-1930, financial collapse was so well underway that the old prohibition enforcement districts were redrawn to conform closely to existing Federal Reserve districts. This change took effect on July 1, 1930, the month Cook County Assessor Gene G. Oliver was convicted of tax evasion and sentenced to 18 months in prison and fined $12,500 by Judge Woodward in Chicago.

Here is a breakdown of the districts.

The transfer of the prohibition enforcement activity from the Treasury Department to the Department of Justice under the Williamson Act took place on July 1, 1930, under the Bureau of Industrial Alcohol in the Treasury Department, retained the duty of issuing permits for the manufacture and use of alcohol and other intoxicating liquor for non-beverage purposes, and of supervising the activities of the permitees.  The 27 prohibition districts hitherto existing were rearranged into 12 new districts, with boundaries corresponding in some measure with the 10 judicial circuits.  (Misdirection! The districts were a nearly perfect fit to the Federal Reserve Districts–tr)

1. Boston: Maine, N. Hampshire, Vermont, Massachusetts, R. Island, Connecticut
2. New York: New York State and Porto Rico
3. Philadelphia: New Jersey; Pennsylvania, Delaware
4. Richmond: Maryland, Virginia, West Virginia, N. Carolina, South Carolina, DC.
5. New Orleans: Alabama, Georgia, Florida, Louisiana, Mississippi, Texas.
6. Cincinnati: Michigan, Ohio, Kentucky, Tennessee
7. Chicago: Illinois, Indiana, Wisconsin.
8. St. Paul: Minnesota, N. Dakota, S. Dakota, Iowa, Nebraska.
9. Kansas City: Arkansas, Kansas, Missouri, Oklahoma.
10. Denver: Arizona, Colorado, N. Mexico, Utah, Wyoming.
11. San Francisco: California, Nevada, Hawaii.
12. Seattle: Idaho, Montana, Oregon, Washington, Alaska.
Source: NY World Almanac 1931 p 36

That same day, the Bank of Winter Park, Florida, closed its doors. As prohibition asset-forfeiture confiscations continued, many other banks would close. The Liberal Party, formed in 1930, published a plank in 1931 calling for the repeal of blue laws and the Prohibition Amendment. The Democratic Party copied this plank in the summer of 1932–in the middle of a major banking panic–and went on to win the election in November. That is s demonstration of the law-changing clout of libertarian party spoiler votes. By the time Franklin D. Roosevelt was sworn in as president in March of 1933, every bank in the nation had already closed its doors.

If you are disappointed not to have learned this in school, join the crowd. But be sure to choose a financial and accounting translator who won’t overlook things and cause added disappointment.

Libertarian spoiler votes repeal bad laws. GOP hurting from unpopular win. LP covers gap in 11 states aggregating 124 electoral votes

The following post Illegal Voting Didn’t Cost Trump The Popular Vote, Gary Johnson Did appeared first on A Libertarian Future at A Libertarian Future – Spreading a Libertarian message across the internet.. It’s been months since the final state finished its recount and finalized its vote totals. The Electoral College voted for Donald Trump and he…

via Illegal Voting Didn’t Cost Trump The Popular Vote, Gary Johnson Did — A Libertarian Future

Prohibition and The Crash, 1929

1929electoralvote

Chapter 39

The City Trust Mystery

            The Steinhardt affair dominated New York headlines, even though the accompanying news stories contained no intelligible information whatsoever. On February 1, 1929, Frank M. Ferrari, president of the City Trust Co., died in New York City as the stock market was making broad advances. The Times quietly tucked the story away on page 27 and few took notice. Then came the embarrassing League of Nations revelations regarding European drug manufacturers, which drew attention to other narcotics-related disclosures and generated more news stories.[1] Behind the scenes Mabel Willebrandt wrote Attorney General Mitchell blaming “disorganization” in the office of the United States Attorney for the Eastern Division of New York, on one William A. DeGroot.[2]

The Federal Reserve Board had meanwhile produced the broker’s loan figures and—in the wake of an increase in the Bank of England’s interest rate—issued another warning against “speculation.”[3] At the same time a settlement was reached in the 1922 Big Four case in which the wealthy bootlegging Savannah gentlemen—already in prison for income tax evasion—were finally assessed $140,000.[4] Bearing hard on the issue of tax evasion was a United States Court of Claims ruling that the Commissioner of Internal Revenue had absolute authority to determine what inventories businesses could and could not use in filing tax returns. Judge Nicholas Sinnott wrote the opinion, which was not at all reassuring for preparers of corporate income tax returns.[5] The Federal Reserve Board soon issued another scolding, hinting at danger to the nation’s gold reserves.[6]

On top of this came the Harris amendment calling for another $25 million in prohibition enforcement appropriations. From January 12 to February 8, when it was deadlocked between House and Senate, the proposal had been the focus of constant and acrimonious debate.[1] By February 13, the commotion reached the floor of the House in the form of a pre-impeachment resolution denouncing Federal Judge Winslow, and across the border into Canada in the form of a massive manhunt for fugitive lawyer Steinhardt.[2] These publicized events at home and in Geneva were attended by flurries of stock liquidations which sent prices tumbling. The New York Stock Exchange, Curb Market and Philadelphia Exchange all announced they would be closed Saturday, February 9. In discussing the market nosedive newspapers avoided touching on the Naarden case, prohibition funding, or the backstage struggles in enforcement offices, pointing instead to recent scoldings by the Federal Reserve Board and to England’s interest rate hike. Even the closure was downplayed as due to an outbreak of the flu among brokers.[3]

Yet there had been signs of uncertainty surrounding the City Trust Company since before January 8, when vice-president Frederico Ferrari signed a report denying the bank had excessive loans. Unbeknownst to newspapers and the public, New York Bank Examiner Frank L. Warder had, on January 15, received a $20,000 payoff to overlook the insolvency of the City Trust Company and forego shutting it down.[4] The market break occurred one week after City Trust president Francesco Ferrari’s death and four days before the closing of the bank’s five locations by the State Department of Banking. The International Radiotelegraph Convention proclaimed January 1 contained the signature of one Frn. Ferrari binding the Republic of San Marino to the treaty. San Marino—barely two miles wide—lay wholly inside Italy nor far from the Ferrari automobile plant. Folks began to wonder just how important this Ferrari fellow had been.[1] The investigation would continue to yield unsavory surprises for another three years. No mention was made of the Bank of United States money which National City Bank placed on deposit at the Petrograd branch of City Trust.[2]

Rioting was rampant in Bombay, with another 28 deaths reported February 11. New outbreaks of political turmoil in Afghanistan already had Great Britain in a stir. And policy recommendations from the League Opium Advisory Committee were extremely unpopular among ruling officials yet popular with the native masses in British India. Ordinary citizens there, as in China, felt themselves exploited by the British opium and salt revenue monopolies. For years now “holy” pictures of Mahatma Gandhi had sold briskly at every market and bazaar in India. People everywhere wore Gandhi caps and picketed and boycotted liquor stores to starve the government of revenue.

Gandhi was imprisoned for “sedition” in 1922 but released in 1924 after an appendectomy out of fear he might die in prison. The Indian Congress had recently resolved in favor of independence if Dominion status were not granted India by the end of 1929. Britain’s very sovereignty had thus been called into question, and the clock set ticking for a showdown over the Empire’s hegemony in British India. British newspapers were still having a field day with the Naarden drug conspiracy case, doubtless overjoyed to have Europeans share some blame. Yet such publicity could only worsen matters in India—where the body count from the latest riots stood at 113—and make a poor impression on the incoming Hoover Administration.[1]

In Williamson county, Illinois, three city officials—a district attorney, coroner, and chief of police—were on trial for liquor conspiracy with the Mayor of Herrin. Chicago Alderman Titus Haffa was also on trial as a kingpin in a liquor conspiracy implicating three prohibition agents.[2] Nor was the situation very comfortable in New York, where officials were busy making sure no “startling evidence” involving public figures with Arnold Rothstein’s drug ring saw daylight. With the grand jury closing in on Judge Winslow, whose narcotics cases included the Unger trial and involved agent Kerrigan’s death, this was no small task. In Miami, Dade County Solicitor Robert Taylor questioned Al Capone, who indignantly declared: “I never was a bootlegger in my life.”[3]

Em português no meu outro blog.

Next: The Valentine’s Day Massacre

[1] (NYT 1/19/29 3) (Taylor 1969 204-5) (Van Tyne 1923 111, 120)

[2] (Pasley 1930 206) (CT 2/16/29 5; 2/17/29 25) (NYT 2/16/29 5:5) (Irey and Slocum 1948 22)

[3] (NYT 2/14/29 1) (CT 2/15/29 3) (Schoenberg 1992 216-217)

[1] (Treaties, Etc. 1938/1968 5031; 5095)

[2] (NY World Almanac 1930 98, 99) (NYT 5/15/28 36)

[1] (NYT 1/12/29 1:2; 1/13 1:7; 1/14 4:4… 2/8 1:4)

[2] (NYT 2/13/29 1, 2)

[3] (WSJ 2/8/29 1)

[4] (NYT 7/3/29 25) (CT 9/7/29 4)

[1] (Taylor 1969 231)

[2] (Hoover 1929 1974 131-2)

[3] (WSJ 2/8/29 1) (Lawrence 1929 437)

[4] (Brown 1984 62, 274)

[5] (CT 2/6/29 1 Commerce)

[6] (Lawrence 1929 437)

Need a translator or interpreter familiar with the links between political economy, prohibitionism, tax law and financial disaster?