Morrill Tariff

Definition

The Morrill Tariff was a protective tariff law enacted in 1861, designed to raise revenue for the federal government during the Civil War while also protecting Northern industries from foreign competition. It significantly increased tariff rates on a range of imported goods, making domestic products more competitive and generating funds essential for wartime expenses.

5 Must Know Facts For Your Next Test

1. The Morrill Tariff was introduced in response to a significant decrease in revenue due to the secession of Southern states, which had previously opposed high tariffs.
2. This tariff raised rates from an average of 20% to about 30-40%, making it one of the highest tariffs in American history at that time.
3. The law was not only aimed at raising funds but also intended to encourage industrial growth in the North, helping to transform the economy during the war.
4. The enactment of the Morrill Tariff marked a significant shift in U.S. economic policy, laying the groundwork for more aggressive trade protectionism in future decades.
5. The Morrill Tariff helped fund the Union's war efforts by providing necessary financial resources, showcasing how economic measures were essential in supporting military objectives.

Review Questions

• How did the Morrill Tariff impact Northern industries during the Civil War?
  • The Morrill Tariff positively impacted Northern industries by increasing tariff rates on imported goods, making domestic products cheaper in comparison. This protection allowed Northern manufacturers to grow and thrive amid wartime demands, as they faced less competition from foreign goods. Additionally, the increased revenues generated by the tariff provided essential funding for the Union's military efforts.
• Discuss the economic motivations behind the implementation of the Morrill Tariff and its effects on government revenue during the Civil War.
  • The economic motivations behind the Morrill Tariff included the urgent need for government revenue due to reduced income from Southern states that had seceded. By increasing tariffs on imports, the government aimed to boost its finances while simultaneously protecting Northern businesses. The tariff successfully generated significant revenue, which was crucial for funding military operations and sustaining the Union's war efforts.
• Evaluate the long-term implications of the Morrill Tariff on U.S. trade policy and economic development after the Civil War.
  • The long-term implications of the Morrill Tariff on U.S. trade policy included a marked shift toward protectionism that influenced future legislation and economic strategies. By establishing high tariffs as a means of supporting domestic industries, it set a precedent for future protective measures that shaped American economic development. This approach contributed to industrial growth and expansion in subsequent decades, leading to a more self-sufficient economy that would affect international trade relations well into the 20th century.

Related terms

Tariff: A tax imposed by a government on imported goods, which can influence trade policy and economic growth.

Protective Tariff:

A type of tariff intended to shield domestic industries from foreign competition by increasing the cost of imported goods.

Revenue Act:

Legislation aimed at increasing government revenue, which often includes measures such as taxation and tariffs.