Economics Volume II: Modern Economic ProblemsFetter, Frank A. (Frank Albert)
General
Economics Volume II: Modern Economic Problems
Fetter, Frank A. (Frank Albert)
Economics
Yet there was undoubtedly a somewhat growing popular demand for some
moderation of the very high duties. To this demand the friends of
protection who were in power felt compelled to concede something--or
to appear to do so. Congress appointed a Tariff Commission of which
the Chairman was secretary of the wool manufacturers' association, and
after a report the tariff act of 1883 was passed. The net results were
almost nil. Some rates were lowered, while others were raised with a
definite protectionist purpose. The average rates for the next seven
years, 1884-1890, were 45 on dutiable (an increase of nearly 2 per
cent) and 30 on free and dutiable (unchanged as compared with the
period ending 1883). In 1884, the Democratic party elected its
presidential candidate (Cleveland) and a majority of the House, but
as it did not control the Senate it could not pass any of the various
proposed measures for a "reform" of the tariff. In 1888 the protective
principle was a leading issue in the campaign. Altho Cleveland
received a few ten thousands larger popular plurality than he had
obtained four years before, and held the electoral votes of 18 of the
states, he lost New York and Indiana by very narrow margins, a result
in which other issues played a large part. Harrison was elected and
the party favoring a high protective tariff came into power.
§ 9. #The tariff, 1890-1896#. The tariff act (known as the McKinley
act) of October, 1890, followed. This was a general extension of the
principle of protection. The rates on woolen goods were on the whole
increased and made in more cases prohibitive. The rates on wool were
increased. The rates on iron, which was already highly protected, were
little changed except by the increase of the duty on tin-plates. The
duty on sugar (in the main a revenue duty, yielding $55,000,000
a year) was removed and a bounty was granted to domestic sugar
producers. In the next three (fiscal) years, 1892-1894, the average
rate proved to be over 49 per cent on dutiable (4 per cent increase)
and 22 per cent on free and dutiable (the remission of sugar duties
accounting for the most of this fall of 8 per cent from the average
under the preceding law--4 per cent fall from the last year of its
operation). Particularly noticeable, however, was the increase in the
proportion of goods entering free, which was nearly 55 per cent of
all merchandise as contrasted with about 33 per cent between 1884 and
1890.
Public-domain text, read in full here on John Shaqi.
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