Tariff of 1875
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| Long title | An Act to amend the customs-revenue laws and to repeal moieties |
|---|---|
| Nicknames | Revenue Act of 1875 |
| Enacted by | the 43rd United States Congress |
| Effective | March 3, 1875 |
| Citations | |
| Statutes at Large | 18 Stat. 469 |
| Codification | |
| Titles amended | 19 U.S.C.: Customs Duties |
| Legislative history | |
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The Tariff of 1875 was a United States federal law enacted during the final year of President Ulysses S. Grant’s administration. The act partially reversed the tariff reductions of the Tariff of 1872, restoring certain duties in response to falling revenues and the onset of the Panic of 1873.[1] It also repealed the controversial system of moieties — a practice in which informers and Treasury agents shared in fines collected from customs violations.[2]
Background
[edit]The Tariff of 1872 had reduced duties on many imports, particularly raw materials and manufactured goods. While popular with many consumers and free-trade advocates, the reductions contributed to a drop in federal revenue — a growing concern following the Panic of 1873, which led to a prolonged economic depression.[1] By 1875, calls to increase revenue without resorting to new internal taxes led Congress to reconsider tariff rates.
At the same time, public outrage had grown over the moiety system, which was increasingly seen as abusive and prone to corruption, especially in customs enforcement in major ports like New York.[2]
Provisions
[edit]The Tariff of 1875 included the following key provisions:
- Restoration of certain import duties that had been reduced or repealed in 1872, particularly on items such as wool and iron.[1]
- Repeal of the moiety system, ending the practice of rewarding informants with a share of customs penalties.[2]
- Strengthening of administrative procedures for customs enforcement.
Political Context
[edit]The act was passed during a period of mounting fiscal conservatism in Congress and growing concern over fraud in the Customs Service. It had bipartisan support, although debates persisted over the balance between revenue needs and tariff protection.[2]
Effects
[edit]The Tariff of 1875 marked a temporary shift back toward protectionism, but it did not fully undo the liberalization of the early 1870s. It helped stabilize federal revenue in the short term but did not prevent future tariff debates that would intensify in the coming decades — culminating in the protectionist McKinley Tariff of 1890.[1]
The law was signed by President Ulysses S. Grant on March 3, 1875.[3]
See also
[edit]References
[edit]- ^ a b c d Taussig, F. W. The Tariff History of the United States. New York: G.P. Putnam's Sons, 1914. Archive.org
- ^ a b c d Stanwood, Edward. American Tariff Controversies in the Nineteenth Century. Boston: Houghton Mifflin, 1903. Volume I at Archive.org
- ^ U.S. Congress. Statutes at Large, 43rd Congress, Session 2, Chapter 127 (1875). Full text (PDF)