TARIFF (ante). In the United States the term tariff is used to designate the schedule of duties fixed by congress on imported goods. Considerations of the subject of rev enue necessarily entered into the question of the formation of the government of the United States. The period of the adoption of the constitution found the country in the possession of a rich and widely extended territory, but having a sparse population, and an empty treasury. Accordingly congress entertained this subject almost at its first ses sion; since the first meeting having taken place April 6, 1789, on the 8th Mr. Madison. in committee of the whole, introduced the matter of duties on imports; proposing that specific duties should be levied on spirituous liquors, wines, molasses, teas, sugars, pep per, cocoa, and spices; and an ad valorem duty on all other articles; also a tonnage duty on American vessels in which merchandise was imported, and a higher rate on foreign vessels. The subject was debated at length; and even at this early period, petitions of manufacturers and others were sent in recommendations and asking encourage ment. The first tariff act became a law under the approval of the president, July 4, 1789. It was comparatively simple, placing specific duty on some forty articles and ad valorem duties on all others. On Aug. 10, 1790, a second tariff act was passed, recom mended by Alexander Hamilton, secretary of the treasury, which increased the ditties by an average of about 2 per cent. On Mar. 3, 1791, another act was passed, increas ing the duties on distilled spirits; and in 1792 a further increase was made by the act of May 2, " for the protection of the frontiers and other purposes." Additional acts passed in 1794 and 1797 were still in the direction of increased duties, and of the application of customs duties to an extended list of articles. Such was also the case with the acts of May 13, 1800, and Mar. 26, 1804; while the acts of Mar. 3, 1807, and Mar. 4, 1808, repealed the duties on certain articles, notably salt, and evincea a disposition toward greater freedom of trade. The war of 1812, with Great Britain, brought about the pas sage of the act of July 1, 1812, which imposed an addition of 100 per cent to existing duties; and a further addition of 10 per cent upon goods imported in foreign vessels. The acts of 1813 and 1815 imposed a duty on foreign salt, but repealed the discriminat ing duties as regarded goods imported in foreign vessels, leaving it to the discretion of the president when to apply such repeal. The tariff act of 1816 brought Henry Clay forward as an advocate of " a thorough and decided protection to home manufactures by ample duties." In the discussions on this bill the theory that protection and not rev enue was the prominent object of tariff legislation, was, first emphatically advanced.
This act, which was essentially protective, became a law on April 27, 1816. In 1824, the principle of "favored nations" first entered into legislation on this question, certain. discriminating duties being by law suspended in the case of the Netherlands and Prus sia, and the Hanseatic cities of Hamburg, Lubeck, and Bremen. In the same year a new bill was framed, and offered, and in the discussion which followed James Buchanan was prominent on the side of protection, and Daniel Webster on that of freer trade, the latter saying that with him "it was a fundamental axiom that the great interests of the country were united and inseparable; that agriculture, commerce, and manufac tures must flourish together, or languish together, and that all legislation was dangerous which proposed to benefit one of them, without looking to the consequences that might fall upon the others." This bill, which was less pronounced in the interest of protection than others which had preceded it, passed the house on April 16, 1824, by a vote of 107 yeas to 102 nays. It was materially modified in the senate in favor of greater liberality, and, thus amended, became a law on May 22. The general tendency of tariff legislation continued in the direction of a reduction of duties, as was shown by the acts of 1828, 1830, and 1832; and in 1833, Mr. Clay found it necessary to bring forward his "com promise bill," which was designed to reconcile the opposing factions, and which was passed. By this time the tariff question had become a political one, and whigs and democrats were arrayed on the respective sides of protection, and a tariff for revenue only; to be followed after 1850 by the republicans and democrats, differing after the same fashion. The general tendency has been in favor of the extreme limits of protection; as the United States has grown to become more and more a manufacturing country; and has constantly entered into fresh competition with other manufacturing countries. Under this system have been built up the iron, silk, and other great industries. Mean while, it has been urged by free-traders that the conduct of tariff legislation under this system has served to sustain prices at a burdensome figure, and that while large manu facturing industries have been fostered and have prospered, this has been at the expense of the consumer, and to the general injury of the masses of the population. Other objec tions to a high protective tariff have been that it encourages smuggling and adulteration, opens a way for corruption in legislation and collection of customs; and has organized a. vast body of office-holders. Efforts have been made during recent sessions of congress to modify the tariff in the direction of free trade, but have proved fruitless of important. results, and unpopular with the majority of the people.