No proposed tariff has ever been universally popular among all Americans. In the early 1900s, a tariff proposal highlighted the tensions between differing interests. Many Americans supported tariffs to discourage monopolies from raising prices. Industrialists believed tariffs on foreign products would protect their business interests. However, a tariff that protected one interest could harm another. New England, which produced no coal, opposed a tariff on that product. But Pennsylvania, a major coal producer, strongly supported the tariff.
On this date in 1909, Congressman Sereno Payne introduced a new tariff bill that raised hundreds of rates. President Taft signed the bill, expecting it to stimulate the economy by protecting American businesses. However, the country was far from united on the subject. The Bismarck Tribune noted, “The more the tariff is argued, the more it is apparent that it is a local issue.” North Dakota farmers had mixed feelings about the tariff but were generally in favor, believing it would make imported agricultural products more expensive and protect the market for homegrown products, helping to stabilize the markets. Politicians recognized the importance of addressing the farmers' concerns. They acknowledged that placing a tariff on some products, like corn, was “hardly defensible on any ground except the political effect they may possibly have on the farmer vote.” Sugar was another contentious product—beet farmers strongly favored a tariff on imported refined sugar, while sugar refiners opposed it.
North Dakota newspapers reflected these mixed feelings but generally defended the tariffs. The Ward County Independent stated that while tariffs would increase the cost of luxury goods, the rate for necessities would be reduced.
The Payne-Aldrich Tariff had a significant impact on American consumers. Tariffs on imported agricultural products were designed to benefit farmers and keep prices down for consumers. However, this was offset by increased costs for farm equipment due to a tariff on steel and iron. As a result, farmers had to raise their prices to maintain their financial stability. Furthermore, the tariff did not address some of the more serious issues facing farmers, like overproduction, unsustainable land use, and mounting debt. Farmers were already feeling increased pressure, and the Great Depression and the Dust Bowl were still looming on the horizon.
Dakota Datebook written by Dr. Carole Butcher
Sources:
- Bismarck Tribune. “The Agricultural Tariffs.” Bismarck ND. 6/16/1909. Page 4.
- Bismarck Tribune. “President Taft has signed….” Bismarck ND. 8/7/1909. Page 4.
- Ward County Independent. “Editorial Comment.” Minot ND. 5/19/1910. Page 2.
- Britannica. “Payne-Aldrich Tariff Act.” https://www.britannica.com/topic/Payne-Aldrich-Tariff-Act Accessed 3/7/2024.
- Michael A. Martorelli “From Taxes to Tariffs.” https://static.moaf.org/docs/From%20Tariffs%20to%20Taxes.pdf accessed 3/7/2025.
- George M. Fisk. “The Payne-Aldrich Tariff.” Political Science Quarterly, Vol. 25, No. 1 (Mar., 1910), pp. 35-68. https://www.jstor.org/stable/pdf/2141008.pdf Accessed 3/7/2025.
