passed by the Republican party, then in control because the defection of Southern members of Congress had already begun. It substituted specific duties for the ad valorem duties of 1846 and 1857, and made some other changes of significance, as in the higher duties upon iron and steel. Nevertheless, the ad- vances then made were of little importance as compared with the far-reaching increases of duty during the Civil War. These formed part of the general resort to every possible "taritt^"* nsca l device. The great struggle compelled every 1862-64. resource to be strained to the utmost: the issue of
long-time bonds, continual borrowing in very large amounts on short-time inconvertible paper money, an elaborate and all-pervading system of internal taxes, and, finally, heavy import duties. The internal taxes of the war were applied not only in the form of income taxes, stamp taxes, licence and gross receipts taxes, but also as direct excise taxes on many com- modities. The import duties were correspondingly raised, partly by way of off-set to the internal taxes, partly as a means of getting additional revenue, and finally in some degree be- cause of a disposition to protect domestic industries. The most important acts were the great revenue acts of 1862 and 1864. Some further changes were made in 1865, and the close of the war thus left the United States with a complicated system of very high taxes both on imported duties and on domestic products.
The main features of the tariff history of the United States since the Civil War have been that the internal taxes have been almost entirely swept away, the import duties on purely revenue articles similarly abolished, while those import duties that operated to protect domestic industries have been maintained, and indeed in many cases increased. The situation has had some analogy to that of France from 1815 to i860, when similarly a highly restrictive system established during a period of war was unexpectedly retained long after peace had been established. This result in the United States came about by gradual steps and without premeditation. After the close of the war efforts were first directed to clearing the financial situa- tion by funding the floating debt, and taking steps (never fully consummated) towards contracting the currency. Next the internal taxes were gradually done away with, until nothing was left except the excise on beer, spirits and tobacco. No further resort was made to internal taxes until the revenue act of 1898 was passed, at the outbreak of the Spanish War. Efforts were made also to reduce the tariff duties, but these naturally came last: they met with strong opposition, and in the end they were almost completely frustrated, thus leaving as the basis of the tariff the rates which had been levied in the course Gradual °^ the war " * n I ^' ro some rearrangements were made, coasoii- the duties on iron and on some other articles being redatioa duced. In 1872 a more general reduction was carried out, strongly resisted by the Protectionists, and finally ending in a uniform cutting off of 10 per cent, from all the import protective duties. In 1875, however, when the revenue had become deficient after the crisis of 1873, the 10 per cent, reduction was repealed, and duties restored to their previous amounts. It deserves to be noted that in 1872 an important step was also taken towards removing entirely the duties on purely revenue articles, tea and coffee being then admitted free of duty. On the other hand, the maintenance of the protective duties, and the gradual consolidation of feeling in favour of a permanent policy of strong protection, led to other revisions and rearrangements in the direction of pro- tection. In 1867 an important act on wool and woollens was passed, largely increasing the duties on both. In 1869 the duty on copper was raised. In 1870, while some duties were lowered, others were raised, as, for instance, those on steel rails and on marble. Thus the ten years immediately following the close of the war brought about the gradual transformation of the high duties levied on all commodities for revenue purposes into a system of high duties almost wholly on protective commodities. This transformation met with much opposition, not less in the Republican party than in the Democratic party. While the feeling in the Republican party had been from the outset in favour of protection, so high a range of duties met with much opposition. This opposition led to an important general re- vision in 1883, largely influenced by the recommendations of a special Tariff Commission which Congress created in 1882. The act of 1883 was passed in the main as a party measure by the Republicans, and on the whole served rather o/;g&J" to put in order the protective system as it stood than to make any change of policy. Certain duties were reduced (though in no case greatly reduced) such as those upon wool, some woollens, cheaper grades of cotton cloths, iron, steel rails, copper. On the other hand, on many articles duties already high, but believed to be insufficient for the effective protection of the domestic producer, were raised; e.g., on finer woollens and cottons, on some iron and steel manufactures.
The tariff system as revised and codified in 1883 would pro- bably have remained unchanged for many years had it not been for the turn taken by political and financial history. The decade from 1880 to 1890 was one of great prosperity, consequently of rising imports, consequently of swelling customs revenue. In the second half of the decade a continuous large surplus in the Treasury necessarily directed attention to the state of the revenue, and gave strength to the protests against excessive taxation. In addition, the Democratic party, which had long been committed, though in a half-hearted way, against the policy of high protection, was brought to a vigorous and un- compromising attack on it through the leadership of President Cleveland. In his Presidential Message of December 1887 he attacked the protective system in unqualified terms; and in the session of 1887-88 the Democratic majority in the House of Representatives prepared a bill providing for great reduc- tions. The control of the Senate by the Republicans prevented any legislation. But the Republicans, as is almost inevitable under a party system, championed the policy opposed by the other side, and declared themselves not only in favour of the maintenance of existing duties, but of the consistent and un- qualified further application of protection. The protection question thus became the main issue in the Presidential election of 1888, which resulted in the defeat of the Democrats. In the next ensuing session of Congress, in 1889-90, the Republicans passed a new tariff act, known as the McKinley Tariff Act, because Mr McKinley was then chairman of the House Committee in charge of the bill. It ad- isw. vanced duties materially on a considerable number of commodities, both raw materials and manufactured articles. The duties on wool were raised, corresponding changes made on woollen goods, the duties on cottons, linens, some silks, and velvets considerably raised. A further step towards consolidat- ing the protective system was taken by abolishing the duty on sugar, mainly a revenue duty. The necessity for reducing the revenue and cutting down the continued surplus was met in this way rather than by lowering the protective duties. For consistency in maintaining the protective principle a direct bounty was given to the domestic producers of sugar in Louisiana. A turn in the political wheel brought an abrupt change four years later, in 1894. The tariff question was again the issue in 1892: President Cleveland, defeated four years before, was now again elected, and the Democratic party came into power, pledged to change the tariff system. Accordingly in the first ensuing session of the Congress elected in 1892 the tariff act of 1894 was passed, known as the Y'rin" t Wilson Tariff, bringing about considerable reductions 1394, of duty. The measure, however, was less incisive than its chief sponsors had planned, because of the narrow majority commanded by the Democrats in the Senate. Some of the Democratic senators were lukewarm in their support of the party policy of tariff reduction, and joined with the Re- publicans in mitigating the changes. Nevertheless some crucial changes were made. The duty on wool, typical among the duties on raw materials, was completely abolished, and with this change came a great reduction in the duties upon woollen goods. Changes, but of less importance, were made on other
