Economics Volume II: Modern Economic ProblemsFetter, Frank A. (Frank Albert)
General
Economics Volume II: Modern Economic Problems
Fetter, Frank A. (Frank Albert)
Economics
From 1789 until 1812, thirteen tariff laws, all told, were passed. One
after another many rates were raised to get larger revenues, but some
goods were put upon the free list. The foreign trade, in both imports
and exports, grew largely and with considerable regularity, rising
then rapidly to a maximum in 1807. Then followed troublous times,
with British Orders in Council and our embargo and nonintercourse
acts until 1812, and war until 1815, trade falling off at first to
one-half, and at last (in 1814) to less than one-twelfth of the
former maximum. Just as trade was, in the war period, sinking to the
vanishing point, the tariff rates were doubled in hopes of getting
increased revenues needed for the war, but in vain.
[Illustration: FIG. 3. IMPORTS INTO THE UNITED STATES. 1821-18565
Many statistics bearing upon tariff history are graphically brought
together here. This figure should be carefully studied in connection
with the following sections. Observe how invariably in the years
following a crisis, the amounts of dutiable imports and of duties
collected have diminished, whether the tariff meantime was changed or
not.]
§ 5. #The tariff, 1816-1845.# Tho rates had been rising, manufacturers
had been making efforts to secure higher rates for protection, even
as early as 1803. Effectual exclusion of foreign goods and consequent
stimulus to the establishment of manufactures in the eastern states
resulted, in the period 1808 and 1815, from the embargoes and the war.
On the return of peace imports were resumed on a large scale and the
call for a higher tariff was loud. In the revision of 1816, rates in
a number of cases were fixed higher than those before the war. Average
rates are said to have been about 20 per cent. The rate on both cotton
and woolen goods was 25 per cent (and the minimum on cotton goods was
a specific rate of 6-1/4 cents a yard). High rates were imposed on pig
iron (50 cents a hundred), hammered bar (75 cents a hundred), and
rolled bar ($1.50 a hundred, equivalent to about 100 per cent _ad
valorem_). Rates were raised on many other articles. The average _ad
valorem_ rates collected in 1821 attained the remarkably high figures
of 36 per cent on dutiable goods, and almost 35 per cent on free and
dutiable together.
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