Editing Payne–Aldrich Tariff Act

{{Short description|1909 U.S. law increasing tariffs on certain imports}}
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| footer = Rep. [[Sereno E. Payne]] of [[New York (state)|New York]] (left) and Sen. [[Nelson W. Aldrich]] of [[Rhode Island]] (right).
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{{William Howard Taft series}}

The '''Payne–Aldrich Tariff''' Act of 1909 (ch. 6, 36 Stat. 11), named for Representative [[Sereno E. Payne]] (R–[[New York (state)|NY]]) and Senator [[Nelson W. Aldrich]] (R–[[Rhode Island|RI]]), began in the [[United States House of Representatives]] as a bill raising certain [[tariff]]s on goods entering the [[United States]].<ref name="nytimes">{{cite news|title=Vote on Tariff Law Forced in the House|url=https://timesmachine.nytimes.com/timesmachine/1910/04/02/105076865.pdf|work=[[The New York Times]]|date=April 2, 1910|access-date=2008-02-06|archive-date=2022-04-09|archive-url=https://web.archive.org/web/20220409025159/https://timesmachine.nytimes.com/timesmachine/1910/04/02/105076865.pdf|url-status=live}}</ref><ref>{{Cite journal |last=Willis |first=H. Parker |author-link=Henry Parker Willis |date=1909 |title=The Tariff of 1909 |url=https://www.journals.uchicago.edu/doi/10.1086/251613 |journal=Journal of Political Economy |language=en |volume=17 |issue=9 |pages=589–619 |doi=10.1086/251613 |issn=0022-3808}}</ref><ref>{{Cite journal |last=Willis |first=H. Parker |author-link=Henry Parker Willis |date=1910 |title=The Tariff of 1909 |url=https://www.journals.uchicago.edu/doi/10.1086/251643 |journal=Journal of Political Economy |language=en |volume=18 |issue=1 |pages=1–33 |doi=10.1086/251643 |issn=0022-3808}}</ref><ref>{{Cite journal |last=Willis |first=H. Parker |author-link=Henry Parker Willis |date=1910 |title=The Tariff of 1909: III |url=https://www.journals.uchicago.edu/doi/10.1086/251676 |journal=Journal of Political Economy |language=en |volume=18 |issue=3 |pages=173–196 |doi=10.1086/251676 |issn=0022-3808}}</ref> The high rates angered the Republican [[Progressive Era|"progressive" faction]], and led to a deep split in the [[History of the Republican Party (United States)|Republican Party]].

==History==

[[Protectionism]] was the ideological cement holding the Republican [[Political alliance|coalition]] together. High [[tariff]]s were used by Republicans to promise higher sales to business, higher wages to industrial workers, and higher demand for farm products.  [[Progressivism|Progressive]] insurgents said it promoted [[monopoly]]. [[Democratic Party (United States)|Democrat]]s said it was a tax on the little man. It had greatest support in the [[Northeastern United States|Northeast]], and greatest opposition in the [[Southern United States|South]] and [[Western United States|West]]. The [[Midwestern United States|Midwest]] was the battle ground.<ref>Howard R. Smith, and [[John Fraser Hart]], "The American tariff map." ''Geographical Review'' 45.3 (1955): 327–346 [https://www.jstor.org/stable/211807 online] {{Webarchive|url=https://web.archive.org/web/20200819114049/https://www.jstor.org/stable/211807 |date=2020-08-19 }}.</ref> 

One provision of the Payne Aldrich law provided for the creation of a tariff board to study the problem of tariff modification in full and to collect information on the subject for the use of Congress and the President in future tariff considerations. Another provision allowed for free trade with the [[Philippines]], then under American control. Congress passed the bill officially on April 9, 1909.<ref>{{cite web|title=Congress passes Payne-Aldrich Act|url=http://www.history.com/this-day-in-history.do?action=Article&id=5817|work=This Day in History 1909|publisher=[[History (U.S. TV channel)|The History Channel]]|access-date=2008-02-06|archive-date=2008-04-11|archive-url=https://web.archive.org/web/20080411024156/http://www.history.com/this-day-in-history.do?action=Article&id=5817|url-status=live}}</ref> The bill states it would "take effect the day following its passage."<ref>Sec. 42, 36 Stat. 11 (Pub. Law 61-5). https://govtrackus.s3.amazonaws.com/legislink/pdf/stat/36/STATUTE-36-Pg11b.pdf {{Webarchive|url=https://web.archive.org/web/20191025134951/https://govtrackus.s3.amazonaws.com/legislink/pdf/stat/36/STATUTE-36-Pg11b.pdf |date=2019-10-25 }}</ref> President Taft officially signed the bill at 5:05 pm on August 5, 1909.<ref>36 Stat. 11 (Pub. Law 61-5). https://govtrackus.s3.amazonaws.com/legislink/pdf/stat/36/STATUTE-36-Pg11b.pdf {{Webarchive|url=https://web.archive.org/web/20191025134951/https://govtrackus.s3.amazonaws.com/legislink/pdf/stat/36/STATUTE-36-Pg11b.pdf |date=2019-10-25 }}</ref>

The Democrats took control of the House in the 1910 election.  President Taft was challenged for reelection in 1912 by former president Theodore Roosevelt for the 1912 Republican nomination. Taft prevailed and Roosevelt and his "progressive" faction formed a new third party. The result was a Democratic landslide making Woodrow Wilson president.  The Democrats sharply lowered the tariff in 1913. <ref>Claude E. Barfield, "'Our Share of the Booty': The Democratic Party Cannonism, and the Payne–Aldrich Tariff." ''Journal of American History'' 57.2 (1970): 308–323 [https://www.jstor.org/stable/1918151 online] {{Webarchive|url=https://web.archive.org/web/20161221002643/http://www.jstor.org/stable/1918151 |date=2016-12-21 }}.</ref>

==Impact==
The Payne Act had the immediate effect of frustrating proponents of reducing tariffs.<ref>Paolo E. Coletta, ''The Presidency of William Howard Taft'' (1973) pp 45–76.</ref> In particular, the bill greatly angered Progressives, who began to withdraw support from President Taft. Because it increased the duty on print paper used by publishers, the publishing industry viciously criticized the President, further tarnishing his image. Although Taft met and consulted with Congress during its deliberations on the bill, critics charged that he ought to have imposed more of his own recommendations on the bill such as that of a slower schedule. However, unlike his predecessor ([[Theodore Roosevelt]]), Taft felt that the president should not dictate lawmaking and should leave Congress free to act as it saw fit.<ref>[[F. W. Taussig|Frank W. Taussig]], ''The Tariff History of the United States'' (8th ed. 1931), pp.&nbsp;361–408. [https://archive.org/details/tariffhistoryofu0000taus_h6v9 online]</ref> Taft signed the bill with enthusiasm on 5 August 1909, expecting it would stimulate the economy and enhance his political standing. He especially praised the provision empowering the president to raise rates on countries which discriminated against American products, and the provision for free trade with the Philippines.<ref>Stanley D. Solvick, "William Howard Taft and the Payne–Aldrich Tariff." ''Mississippi Valley Historical Review'' 50.3 (1963): 424–442 [https://www.jstor.org/stable/1902605 online] {{Webarchive|url=https://web.archive.org/web/20210307035528/https://www.jstor.org/stable/1902605 |date=2021-03-07 }}.</ref>

In an article for the ''[[The Quarterly Journal of Economics|Quarterly Journal of Economics]]'', [[F. W. Taussig]] wrote that the congressional debates about the tariffs were "depressing for the economist. There is hardly a gleam of general reasoning of the sort which is applied in our books to questions of international trade... That there should be general acceptance of the protectionist principle, and that the only question in debate should be whether duties were "unreasonably" high, was natural enough. Most people get used to existing conditions, and cannot easily conceive of anything different."<ref>{{Cite journal |last=Taussig |first=F. W. |author-link=F. W. Taussig |date=1909 |title=The Tariff Debate of 1909 and the New Tariff Act |url=https://www.jstor.org/stable/1886056 |journal=The Quarterly Journal of Economics |volume=24 |issue=1 |pages=1–38 |doi=10.2307/1886056 |jstor=1886056 |issn=0033-5533}}</ref>

The defection of insurgent Republicans from the Midwest began Taft's slippage of support. It heralded conflicts over conservation, patronage, and progressive legislation. The debate over the tariff thus split the Republican Party into [[Fourth Party System|Progressives]] and [[Old Right (United States)|Old Guards]] and led the split party to lose the 1910 congressional election.<ref>[[Lewis L. Gould]], "Western Range Senators and the Payne–Aldrich Tariff." ''Pacific Northwest Quarterly'' 64.2 (1973): 49–56 [https://www.jstor.org/stable/40489113 online] {{Webarchive|url=https://web.archive.org/web/20161221002620/http://www.jstor.org/stable/40489113 |date=2016-12-21 }}</ref>

===Corporate Income Tax===
The bill also enacted a small [[income tax]] on the privilege of conducting business as a corporation, which was affirmed in the Supreme Court decision ''[[Flint v. Stone Tracy Co.]]'' (also known as the Corporation Tax case).<ref>John D.  Buenker, ''The Income Tax and the Progressive Era'' (Routledge, 2018).</ref>

==References==
{{reflist}}

==Further reading==
* [[Mark Aldrich|Aldrich, Mark]]. "Tariffs and Trusts, Profiteers and Middlemen: Popular Explanations for the High Cost of Living, 1897–1920." ''History of Political Economy'' 45.4 (2013): 693–746.
* Barfield, Claude E. "'Our Share of the Booty': The Democratic Party Cannonism, and the Payne–Aldrich Tariff."  ''Journal of American History '' (1970) 57#2 pp.&nbsp;308–323.  [https://www.jstor.org/stable/1918151 in JSTOR]
* Brawley, Mark R. " 'And we would have the field': US Steel and American trade policy, 1908–1912." ''Business and Politics'' 19.3 (2017): 424–453.
* Coletta, Paolo Enrico. ''The Presidency of William Howard Taft'' (University Press of Kansas, 1973) pp 61–71.
* Detzer, David W. "Businessmen, Reformers and Tariff Revision: The Payne–Aldrich Tariff of 1909." ''Historian''  (1973) 35#2 pp.&nbsp;196–204.
* Fisk, George.  "The Payne–Aldrich Tariff," ''Political Science Quarterly'' (1910) 25#1 pp.&nbsp;35–68; [https://www.jstor.org/stable/2141008 in JSTOR]
* [[Lewis L. Gould|Gould, Lewis L.]] "Western Range Senators and the Payne–Aldrich Tariff." ''Pacific Northwest Quarterly'' (1973): 49–56.  [https://www.jstor.org/stable/40489113 in JSTOR]
* [[Lewis L. Gould|Gould, Lewis L.]]  "New Perspectives on the Republican Party, 1877–1913," ''American Historical Review'' (1972) 77#4 pp.&nbsp;1074–1082 [https://www.jstor.org/stable/1859508 in JSTOR]
* [[Lewis L. Gould|Gould, Lewis L.]] ''The William Howard Taft Presidency'' (University Press of Kansas, 2009) 51–64.
* [[George E. Mowry|Mowry, George E.]] ''Theodore Roosevelt and the Progressive Movement'' (1946) pp.&nbsp;36–65 [https://archive.org/details/in.ernet.dli.2015.87002 online].
* [[George E. Mowry|Mowry, George E.]] ''The Era of Theodore Roosevelt'', 1900–1912 (1958) pp.&nbsp;242–247 [https://www.google.com/#safe=off&q=george+e+mowry+archive.org read online]
* Solvick, Stanley D.  "William Howard Taft and the Payne–Aldrich Tariff." ''Mississippi Valley Historical Review'' (1963) pp.&nbsp;424–442 [https://www.jstor.org/stable/1902605 in JSTOR].
* [[F. W. Taussig|Taussig, Frank W.]] ''The Tariff History of the United States'' (8th ed. 1931), pp.&nbsp;361–408 [https://archive.org/details/tariffhistoryofu0000taus_h6v9 online]
* Wolman, Paul. ''Most Favored Nation: The Republican Revisionists and US Tariff Policy, 1897–1912'' (U of North Carolina Press, 2000).

{{US tax acts|state=expanded}}
{{William Howard Taft}}

{{DEFAULTSORT:Payne-Aldrich Tariff Act}}
[[Category:1909 in American law]]
[[Category:1909 in economic history]]
[[Category:Tariff laws in the United States]]
[[Category:Economic history of the United States]]
[[Category:History of international trade]]
[[Category:1909 in international relations]]
[[Category:United States federal trade legislation]]