In 1861 the Republican Party passed the `Morrill Tariff,' intended primarily to protect American manufactures. Twice in the same year (August 5th and December 24th) the duties were still further increased, less for protection, how ever, than in order to meet the expenses entailed by the Civil War.
The problems that were injected into politics by the war, and by the conditions resulting from it, relegated the tariff question to the background for many years. During this period duties were raised with little opposition to an unprecedented level. After the close of the war other ques tions still absorbed public attention, and it was not until 1880 that the tariff again be came an important issue. The Republicans in nominating General Garfield embodied in their platform a strong declaration in favor of maintaining a scale of duties that should continue to protect American industries against foreign competition. The Democrats began to urge the expediency of modifying a tariff which had been framed to meet the conditions of a time of war, and which, they claimed, was not merely hampering commerce, excluding the United States from the markets of the world. but fostering monopolies by preventing healthful com petition. They therefore declared for 'a tariff for revenue only,' Which was afterwards explained as a tariff that should give 'incidental protection.' In 1882 provision was made by Congress for the appointment of a commission to report upon the expediency of a reduction of the tariff. This re duction became a question of pressing impor tance, since the revenues of the Government had so far exceeded its expenses as to accumulate in the treasury a very large and increasing sur plus, which threatened to disturb seriously the financial system of the country. The Tariff Com mission made its report, and in accordance with its recommendations the act of 18S2, a distinctly protectionist measure, was passed. In 1884, the House being Democratic, the bill known as the 'Morrison Horizontal Reduction Bill' for lower ing the tariff was hotly debated, but by a com bination between the Republicans and the Demo cratic protectionists led by Mr. Randall, of
Pennsylvania, it was defeated. The campaign of that year turned to some extent upon the tariff question, for the Democratic platform, while evading the question of protection, demanded a real reduction of tariff duties, as well as legisla tion to check the aggression of great corpora tions. The election of Mr. Cleveland appeared to show that the cry of 'free trade' had ceased to alarm the great body or voters, and that they were willing to hear argument upon the questions at issue. The new President's first message (December 16, 1885) recommended a reduction of the tariff, and his message in December, 1887, was devoted exclusively to this topic. In it he stated that the surplus in the treasury was near ly $140,000.000, demanded as a remedy the im mediate abolition of the duties upon wool and other raw materials, and characterized the exist ing tariff laws as "vicious, inequitable, and il logical." In accordance with the views of this message a new tariff measure, the 'Mills Bill,' removing the duty on wool, and aiming at an estimated annual reduction of revenue of fully $50,000,000, passed the House, The Republican Senate offered a substitute repealing the tax upon tobacco and reducing the duty on sugar one-half, thus securing an estimated reduction of $65.000,000 per annum. Neither bill became a law.
The defeat of the Democrats in the Presiden tial election of 1888 was possibly due to the prominence of the tariff question, but as the majority of the popular vote was on their side, it was seen that a reform or, at any rate, a revision of the tariff was sooner or later in evitable. Therefore, the Fifty-second Congress took up the matter ill earnest, with the result that the famous McKinley Bill passed both Houses of Congress and was signed by President Harrison (September, 1890). By its provisions the annual reduction of revenue was estimated to be some $66,000,000, of which $6,000,000 was due to a reduction of internal revenue taxes, chiefly on tobacco. A bounty was provided to compensate producers of raw sugar for the aboli tion of the duty on that commodity.