Note 165 — Chapter XIX · THE ENCOURAGEMENT AND REGULATION OF COMMERCE.

The general course of American tariff policy may be marked off into four main periods. The first, which extended from 1792 to the close of the War of 1812, was a period of relatively low tariff duties. The duties levied during these years did not greatly hamper imports. While the United States and England were at war, however, some new industries were established in America, and it was deemed advisable to afford these new industries protection against English competition when the war was over. Accordingly, a more strongly protective policy was adopted in 1816, and this action ushers in the second period, which lasted till about 1842. During the earlier part of this interval the duties on imported manufactures remained relatively high. The high duties created strong opposition, however, especially in the Southern states, and in time a reaction took place with the result that the rates were gradually lowered to a general level of about twenty per cent in 1842. From this date until the outbreak of the Civil War the duties remained low, so that the third period saw the virtual abandonment of protection in favor of a tariff for revenue only. Then the outbreak of the Civil War changed the situation. The need of a great increase in revenue became imperative, and high duties on imports seemed to be a ready way of obtaining national funds. A series of tariff measures put the rates higher and higher. When the war was over the high rates for the most part remained and they have remained relatively high throughout the fourth period, which carries us to the present day. Since 1865 many tariff measures have been passed by Congress; some have raised the duties, while others have lowered them. In 1913 duties were considerably reduced by the Democrats; in 1921 they were put up again by the Republicans. The question of tariff rates has been an issue at many national elections. But, with all its ups and downs, the tariff has remained protective both in its purpose and effect.