Hostname: page-component-586b7cd67f-2plfb Total loading time: 0 Render date: 2024-12-01T08:58:11.738Z Has data issue: false hasContentIssue false

The second face of hegemony: Britain's repeal of the Corn Laws and the American Walker Tariff of 1846

Published online by Cambridge University Press:  22 May 2009

Scott C. James
Affiliation:
An earlier draft of this article was presented to the Conference Group on Political Economy, 2–6 September 1987, in Chicago. The authors thank David D'Lugo, Jeffry Frieden, Wendy Lake, Vincent Mahler, Karen Orren, Robert Pahre, Ronald Rogowski, Cheryl Schonhardt, Lars Skalnes, and Arthur Stein for helpful comments.
David A. Lake
Affiliation:
An earlier draft of this article was presented to the Conference Group on Political Economy, 2–6 September 1987, in Chicago. The authors thank David D'Lugo, Jeffry Frieden, Wendy Lake, Vincent Mahler, Karen Orren, Robert Pahre, Ronald Rogowski, Cheryl Schonhardt, Lars Skalnes, and Arthur Stein for helpful comments.
Get access

Extract

One challenge facing hegemonic stability theory is to specify the processes by whichhegemonic countries construct and maintain a liberal international economic order. Earlier studies have focused on direct coercion or ideological manipulation by the hegemon as a principal technique for manipulating the trade policies of other countries. This article explores a different “face” of hegemony. Specifically, we contend that by altering relative prices through the exercise of their international market power, hegemonic leaders influence the trade policy preferences of their foreign trading partners. We examine this argument in the case of the American Walker Tariff of 1846. American tariff liberalization was intimately related to Britain's repeal of its Corn Laws. In the antebellum United States, Northern protectionist and Southern free trade proclivities were fixed; Western grain growers held the balance of power. By allowing access to its lucrative grain market, Britain altered the economic and political incentives of Western agriculturalists and facilitated the emergence of the free trade coalition essential to the passage of the Walker Tariff.

Type
Articles
Copyright
Copyright © The IO Foundation 1989

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1. Quote by the Columbus, Ohio Statesman, 7 08 1846.Google Scholar Cited in Silbey, Joel, The Transformation of American Politics, 1840–1860 (Englewood Cliffs, N.J.: Prentice-Hall, 1967), p. 98.Google Scholar

2. See Krasner, Stephen D., “State Power and the Structure of International Trade,” World Politics 28 (04 1976), pp. 317–47.CrossRefGoogle Scholar

3. Snidal, Duncan, “The Limits of Hegemonic Stability Theory,” International Organization 39 (Autumn 1985), pp. 579614.CrossRefGoogle Scholar

4. See Kindleberger, Charles, The World in Depression, 1929–1939 (Berkeley: University of California Press, 1973)Google Scholar; and “Dominance and Leadership in the International Economy: Exploitation, Public Goods, and Free Rides,” International Studies Quarterly 25 (06 1981), pp. 242–54.Google Scholar

5. See Olson, Mancur and Zeckhauser, Richard, “An Economic Theory of Alliances,” Review of Economics and Statistics 58 (08 1966), pp. 266–79.CrossRefGoogle Scholar For a skeptical view, see Conybeare, John A. C., “Public Goods, Prisoners' Dilemmas, and the International Political Economy,” International Studies Quarterly 28 (03 1984), pp. 522.CrossRefGoogle Scholar

6. Our discussion of the three faces of hegemony is inspired by but does not necessarily follow the literature on the three faces of power. See Schattschneider, E. E., The Semi-Sovereign People: A Realist's View of Democracy in America (New York: Holt, Rinehart & Winston. 1960)Google Scholar; Bachrach, Peter and Baratz, Morton S., “The Two Faces of Power,” American Political Science Review 56 (12 1962), pp. 947–52CrossRefGoogle Scholar; Crensen, Matthew A., The Un-Politics of Air Pollution: A Study of Non-Decisionmaking in the Cities (Baltimore: Johns Hopkins Press, 1971)Google Scholar; and Lukes, Steven, Power: A Radical View (London: Macmillan, 1977).Google Scholar

7. McKeown, Timothy, “Hegemonic Stability Theory and 19th Century Tariff Levels in Europe,” International Organization 37 (Winter 1983), pp. 7391CrossRefGoogle Scholar; and Stein, Arthur, “The Hegemon's Dilemma: Great Britain, the United States, and the International Economic Order,” International Organization 38 (Spring 1984), pp. 355–86.CrossRefGoogle Scholar

8. See lliasu, A. A., “The Cobden-Chevalier Commercial Treaty of 1860,” Historical Journal 14 (03 1971), pp. 6798.Google Scholar

9. See Hobsbawm, E. J., Industry and Empire: The Making of Modern English Society, vol. 2, 1750 to the Present (New York: Pantheon, 1968), pp. 110–26.Google Scholar

10. See Lake, David A., Power, Protection, and Free Trade: International Sources of U.S. Commercial Strategy, 1887–1939 (Ithaca, N.Y.: Cornell University Press, 1988), pp. 2429 and 40–44.Google Scholar

11. This is the central insight of endogenous tariff theory. See Caves, Richard E., “Economic Models of Political Choice: Canada's Tariff Structure,” Canadian Journal of Economics 9 (05 1976), pp. 278300CrossRefGoogle Scholar; Baack, Bennett D. and Ray, Edward John, “The Political Economy of Tariff Policy: A Case Study of the United States,” Explorations in Economic History 20 (01 1983), pp. 7393CrossRefGoogle Scholar; and Lavergne, Real P., The Political Economy of U.S. Tariffs (New York: Academic Press, 1983).Google Scholar

12. See Cox, Robert W., “Social Forces, States and World Orders: Beyond International Relations Theory,” Millennium: Journal of International Studies 10(Summer 1981), pp. 126–55CrossRefGoogle Scholar; Gill, Stephen, “Hegemony, Consensus, and Trilateralism,” Review of International Studies 12 (07 1986), pp. 205–21CrossRefGoogle Scholar; Gill, Stephen, “American Hegemony: Its Limits and Prospects in the Reagan Era,” Millennium: Journal of International Studies 15 (Winter 1986) pp. 311–36CrossRefGoogle Scholar; and Alan Cafruny, “Salvaging the Theory of Hegemonic Stability,” unpublished manuscript.

13. In this context, E. E. Schattschneider's often-cited observation about the second face of power retains its full force: “All forms of political organization have a bias in favor of the exploitation of some kinds of conflict and the suppression of others because organization is the mobilization of bias. Some issues are organized into politics while others are organized out.” The Semi-Sovereign People, p. 71.

14. See Lake, , Power, Protection, and Free Trade, pp. 2933.Google Scholar

15. For a political application of this theorem, see Rogowski, Ronald, Trade and Political Cleavages (Princeton, N.J.: Princeton University Press, forthcoming).Google Scholar

16. The same result follows from a specific factors model of trade policymaking. Among others, see Baack and Ray, “The Political Economy of Tariff Policy.”

17. Ashley, Percy, Modern Tariff History: Germany, the United States and France, 3d ed. (London: John Murray, 1920), p. 147.Google Scholar

18. Pincus, Jonathan J., Pressure Groups and Politics in Antebellum Tariffs (New York: Columbia University Press, 1977), p. 64.Google Scholar

19. Ashley, , Modern Tariff History, p. 155.Google Scholar

20. Ibid., p. 156.

21. Ibid., p. 159.

22. Mayfield, John, The New Nation, 1800–1845 (New York: Hill & Wang, 1982), p. 196.Google Scholar

23. Taussig, Frank W., Tariff History of the United States (New York: G.P. Putnam's Sons, 1910), pp. 110–11.Google Scholar

24. Klein, Philip Shriver, President James Buchanan: A Biography (University Park: Pennsylvania State University Press, 1962), p. 172.Google Scholar

25. Taussig, , Tariff History, p. 114.Google Scholar

26. Jones, Wilbur Devereux, The American Problem in British Diplomacy, 1841–1861 (London: Macmillan, 1974), p. 61.Google Scholar

27. Stanwood, Edward, American Tariff Controversies in the Nineteenth Century, vol. 2 (New York: Houghton Mifflin, 1903), p. 85.Google Scholar

28. Ibid., p. 86.

29. Laughlin, J. Laurence and Willis, H. Parker, Reciprocity (New York: Baker & Taylor, 1903), p. 30.Google Scholar

30. Congressional Globe, 4 April 1854, p. 2212. See also Laughlin, and Willis, , Reciprocity, Appendix 2, p. 473Google Scholar, for items included in the reciprocal treaty.

31. Thompson, R. W., The History of Protective Tariff Laws, 3d ed. (Chicago: R.S. Peale, 1888), p. 417.Google Scholar

32. Ashley, , Modern Tariff History, p. 174.Google Scholar

33. Ibid., p. 173.

34. Sturge, Joseph, A Visit to the United States in 1841 (Boston: Dexter S. King, 1842). p. 184.Google Scholar

35. Ashley, , Modern Tariff History, p. 147n.Google Scholar

36. Ibid.

37. Clay, Henry, “Speech of Henry Clay on American Industry in 1824,” in Taussig, Frank W., ed.. Slate Papers and Speeches on the Tariff (Cambridge, Mass.: Harvard University Press, 1893), p. 260.Google Scholar

38. Remini, Robert V., The Election of Andrew Jackson (Philadelphia: J.B. Lippincott, 1963), p. 16.Google Scholar

39. Deusen, Glyndon Van, The Jacksonian Era, 1828–1848 (New York: Harper & Row, 1959), p. 40.Google Scholar

40. Ibid., p. 60.

41. Martin, Thomas P., “Cotton and Wheat in Anglo-American Trade and Politics, 1846 to 1852,” Journal of Southern History 1 (08 1935). p. 295Google Scholar. As an example, a commercial treaty between the United States and the German Zollverein had been concluded in 1844 through the offices of the State Department, which at that time was under the direction of South Carolinian John C. Calhoun. Under the provisions of the proposed treaty, duties on German textiles and other manufactures were to be significantly reduced. In return, the Zollverein agreed to reduce tariffs on U.S. tobacco and lard and to freeze the duty on rice. Unmanufactured cotton was to be admitted on the free list (Laughlin, and Willis, , Reciprocity, pp. 89)Google Scholar. The treaty was subsequently rejected in the Whig-dominated Senate by a vote of 26 to 18, ostensibly on the grounds that “‘the Legislature was the department by which commerce should be regulated and laws of revenue passed’: that therefore the State Department had no right to interfere in such regulations.” See Schuyler, Eugene, American Diplomacy and the Furtherance of Commerce (New York: Charles Scribners' Sons, 1886), p. 434.Google Scholar

42. Martin, Thomas P., “The Upper Mississippi Valley in Anglo-American Anti-Slavery and Free Trade Relations: 1837–1842,” Mississippi Valley Historical Review 15 (1928–29), p. 212.CrossRefGoogle Scholar

43. McCormick, Richard P., The Presidential Game: The Origins of American Presidential Politics (Oxford: Oxford University Press, 1982), p. 165.Google Scholar

44. Deusen, Van, The Jacksonian Era, p. 166.Google Scholar

45. See Table 1, p. 24, for the vote tally of crucial Western grain-growing states.

46. Pincus, , Pressure Groups and Politics in Antebellum Tariffs, p. 11n.Google Scholar

47. Quote by Curtis, John. Cited in Sturge, , Visit to the United States, p. 189.Google Scholar

48. Pletcher, David M., The Diplomacy of Annexation: Texas, Oregon and the Mexican War (Columbia: University of Missouri Press, 1973), p. 23.Google Scholar

49. Chair John C. Calhoun spoke for the aspirations of those attending the convention in Memphis, declaring that “prosperity for the agricultural states is dependent on an extensive market, and that in turn depended on safe and inexpensive transportation, internal, continental, and world wide.” See Wiltse, Charles, John C. Calhoun, Sectionalist, 1840–1850 (Indianapolis: Bobs-Merrill, 1951), p. 238.Google Scholar

50. Walker, Robert J., “Report from the Secretary of the Treasury,” in Taussig, , ed., Stare Papers and Speeches on the Tariff, p. 237.Google Scholar

51. This is not intended as a complete explanation of the repeal of the Corn Laws. We emphasize that altering Western trade preferences and the balance of political power in the United States were important motivations for repeal.

52. Martin, , “Upper Mississippi Valley,” p. 205.Google Scholar

53. Bolles, Albert S., A Financial History of the United States, 3d ed. (New York: D. Appleton, 1891), p. 449 and 449n.Google Scholar

54. Ibid.

55. Martin, , “Upper Mississippi Valley,” p. 209.Google Scholar

56. Prentice, Archibald, History of the Anti-Corn Law League (London: W. & F.G. Cash, 1853), p. 138Google Scholar. British abolitionists and free traders further recognized the direct effect that discriminations in their country's tariff schedules had on the structure of political power in the United States. In a letter written in 1841 to Joseph Sturge, a Birmingham grain dealer and prominent abolitionist, Richard Cobden observed: “There are more human beings in bonds in North America than in all the rest of the Christian world, and we by our corn laws throw the entire power of the legislature there into the hands of the slaveowners.” Quoted in Richard, Henry, Memoirs of Joseph Sturge (London: Partridge & Bennett, 1864), pp. 277–78.Google Scholar

57. Cobden, Richard, Speeches on Free Trade (London: Macmillan, 1903), p. 155.Google Scholar

58. American Whig protectionists were a main source of the argument that, under normal conditions, Western “foodstuffs could not compete with those of the Black Sea and Baltic regions.” (Whigs dwelt on the contention that the British market was “unimportant and unattractive.”) But Western farmers felt they could compete in British markets with the proper internal improvements (“cheap and rapid transportation”). As it was, “Northern canals and rivers were useless during the winter months due to ice blockage,” and even under optimal conditions rapid shipments of produce were impossible. See Martin, , “Cotton and Wheat in Anglo-American Trade and Politics,” p. 306.Google Scholar

59. Martin, , “Upper Mississippi Valley,” p. 219.Google Scholar

60. Pletcher, , The Diplomacy of Annexation, p. 27Google Scholar; and Trumbull, M. M., The Free Trade Struggle in England, 2d ed. (Chicago: Open Court, 1892), p. 97.Google Scholar

61. Quote by the Cincinnati Herald, 2 April 1845. Cited in Martin, Thomas P., “Free Trade and the Oregon Question, 1842–1846,” in Facts and Factors in Economic History (Cambridge, Mass.: Harvard University Press, 1932), p. 486n.Google Scholar

62. Martin, , “Cotton and Wheat in Anglo-American Trade and Politics,” p. 300.Google Scholar

63. Pletcher, , The Diplomacy of Annexation, p. 27.Google Scholar

64. The Economist, 30 November 1844, p. 1466.

65. Ibid.

66. Quoted in Ward, J. T., Sir James Graham (New York: St. Martin's Press, 1967), p. 209.CrossRefGoogle Scholar

67. Office of the Society for the Protection of Agriculture and British Industry, The Battle for Native Industry: The Debate upon the Corn Laws, vol. 2, reprinted from Hansard Parliamentary Debates, 1846 (London: George Woodfall & Son, 1846), pp. 175–76.Google Scholar

68. Ibid., p. 167.

69. See, among others, McCord, Norman, The Anti-Corn Law League, 1838–1846 (London: Allen & Unwin, 1958).Google Scholar

70. Wiltse, , John C. Calhoun, Sectionalist, p. 258.Google Scholar

71. Ibid., p. 264.

72. The prospect for the repeal of the Corn Laws was expected to further reinforce the political momentum behind efforts to reduce U.S. tariffs by enlisting the economic self-interest of the railroads. Railroad interests were twofold. First, with repeal, “much of the produce which was formerly shipped by way of Montreal [would] now come over the Western Road to Boston.” It followed that to maximize profitability and avoid “the return of strings of ‘empties’ which ought to be carrying freight” on the return leg of the trip, the complementary extension of markets for manufactured goods was essential. (Indeed, the only Northeastern states voting for the 1846 tariff reductions were those with dominant shipping interests.) Second, railroad extension was critically tied to the availability of iron in larger quantities and at cheaper prices than protected domestic industry could supply. The tariff on railroad iron stemming from the revisions of 1842 added $2,000 per mile to the cost of railroad construction. Consequently, the reduction of duties on iron products was essential if the railroads were to capture the commercial gains likely to result from repeal of the Corn Laws. Thus, when the Corn Laws were repealed and the Walker Tariff was a reality, it was not surprising that Louis McLane—president of the Baltimore and Ohio (B&O) Railroad and American Minister to England during this period of parallel tariff reform—resigned his post in August 1846. Staggered by the potential demand for Western breadstuffs in Britain, he returned home to push for the extension of the B&O line over the Appalachians to the Ohio River. The B&O expected to tap the extensive Western market and play a central role in moving grain between the West and the Eastern seaports. This desire was reproduced in the calculations of other railroad lines, such as the Michigan Central, the New York and Erie, and the Pennsylvania Central. Indeed, railroad mileage tripled between the years 1849 and 1856, with the bulk of the additional track put down “in the West or in lines connecting the East with the West.” The result was a “veritable race to reach the lakes and rim of the Ohio Valley.” See Martin, , “Cotton and Wheat in Anglo-American Trade and Politics,” pp. 307–10.Google Scholar

73. Wiltse, , John C. Calhoun, Sectionalist, pp. 258–59.Google Scholar

74. The final treaty on the issue of the Oregon Territory fixed the boundary at the 49th parallel and gave the British all of Vancouver Island as well as free navigation on the Columbia River “for a term of years.”

75. Wiltse, , John C. Calhoun, Sectionalist, p. 257.Google Scholar

76. Ibid., p. 238.

77. See Silbey, Joel H., The Shrine of Party: Congressional Voting Behavior, 1841–1852 (Pittsburgh: University of Pittsburgh Press, 1967)Google Scholar. Also important are Silbey's collection of essays gathered in The Partisan Imperative: The Dynamics of American Politics Before the Civil War (New York: Oxford University Press, 1985).Google Scholar

78. In addressing this counterargument, we first sought to identify Democrats from the Western states who had voted on the tariff in both 1842 and 1846 as a means of isolating their votes and highlighting the change in policy preferences. This seemed the most direct means of substantiating our thesis. This strategy proved impossible, however, as congressional turnover in these crucial Western states between the 1842 and 1846 tariff votes was virtually total, with the exception of one Whig who supported high tariffs in both years and one Democrat who voted in neither year.

79. McCormick, , The Presidential Game, p. 166.Google Scholar

80. Silbey, , The Shrine of Party, p. 81,Google Scholar Table 5.16.

81. Ibid., p. 81 and p. 247, fn. 24.

82. Ibid., p. 247, fn. 25.

83. Ibid., pp. 75–76.

84. Quote by the Columbus Ohio Statesman, 7 August 1846. Cited in Silbey, , The Transformation of American Politics, p. 98.Google Scholar

85. Silbey, , The Transformation of American Politics, pp. 25 and 100–106.Google Scholar