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Date:         Mon, 9 Nov 1992 14:37:45 -0600
From:         "VALENTINE M. SMITH" <CDELL@UMKCVAX1.BITNET>
Subject:      "On Tariffs"

To Kerry and Whomever -

On Tariffs

This is cribbed, (from the Barnes and Noble College Outline series,
_United States to 1865, Fourth Edition (1946) and _United States
Since 1865, (1953) both by John Krout) but perhaps useful.

The first tariff of the United States was created by the Tariff Act
of 1789, butressed by the revenue Act of 1792. The Federalists first
supported the protective tariff, and the Republicans (later
Democrat-Republicans and then Democrats) opposed such. In 1816, a
tariff on woolen and cotton goods (primarily) was imposed, thereby
"protecting" New England cotton manufacturers. The South opposed this
tariff.

In 1824, tariff rates were raised, and then in 1828. the "Tariff of
Abominations" was passed by Southern Jacksonians in hopes of pushing
New Englanders to defeat it. It passed. An 1832 tariff act slightly
lowerd the 1828 rates, but which also prompted the South Carolina
"Ordinance of Nullification," which declared both the 1828 and 1832
tariff laws null and void. In 1833, a "Force bill" authorized the use
of force to collect tariffs, but passed a new tariff law allowing a
downscaling of the tariff over 20 years.

In 1860, the new Republican party supported the idea of protective
tariffs, which was one cause of the various secession movements, in
addition to homesteading, slavery and and a trans-Pacific railroad.
During the Civil War, the GOP had enacted protective tariffs, which
stayed in place after the war, and had been adjusted in 1870, 1872,
and 1875, but left the basic mechanism of protective tariffs in
place. In 1883, a 2% reduction in rates occurred. In 1887, Democratic
President Cleveland demanded tariffs be removed, and the Democratic
House passed the Mills bill in 1887 to further such a goal, but the
Republican Senate in 1888 passed the Aldrich bill furthering the high
tariffs. The tariff then became THE issue of the 1888 campaign, and
high-tariff Benjamin Harrison won. In 1890, the McKinley tariff was
passed, raising duties on woolens, cotton and steel, and the
principle was extended to farm products, and the Sherman Silver
Purchase Act was also passed as a means of dealing with the surplus
in the Treasury. This apparently caused a Democratic sweep of
Congress in the by-election of 1890, and the re-election of Cleveland
in 1892, calling for repeal of both the Sherman Act and the lowering
of tariffs.

In 1893, the President succeeded in repealing Sherman (allied with
Republicans), but alienated his own party. The Wilson-Gorman Tariff
of 1893 had 630+ amendments, resembled greatly the McKinley Tariff,
Cleveland refused to sign the bill, but it becamne law without his
signature. In 1894, the Supreme Court declared its income tax
provisions unconstitutional (Pollock v. Farmer's Loan and trust
Company). In 1897, Congress passed the Dingley Tariff, "restored the
protective levels of the McKinley Act of 1890." This law stayed in
force until 1909. In 1909, after a bitter fight, the Payne-Aldrich
Tariff was passed, basically maintaining the levels of the Dingley
Tariff.

In 1913, the Underwood-Simmons Bill was passed, reforming the tariff
system by a) an enlarged "free list," b) reduction of duties on goods
that had no foreign competition, c) increased rates on luxuries, d)
use of across-the-board duties rather than specific ones, and e)
imposition of a gradual income tax. World War I disrupted whatever
effects this legislation might have had.  The Fordney-McCumber Tariff
of 1922 represented "a return to protectionist principles." The
Hawley-Smoot Tariff of 1930 raised tariffs, but also made the Tariff
Commission more effective and kept the principle of flexible rates.

That's as far as the history lesson goes from this quarter. I think
it fair to say that Republicans HAVE favored protection, they still
appear to, and the Democrats generally oppose tariffs, though going
along with more than a few over the years. I hope this helps answer
Kerry's question - tariffs are not my cup of tea, so I DID have to go
look it up. VMS
Xref: sparky bit.listserv.politics:17424 soc.culture.usa:8362