Tariffs for many years were primarily

Tariffs for many years were primarily to collect Federal revenue and only secondarily to protect start-up industries. Since the government largely restricted its activities to maintaining order and protecting property via the army, navy and courts tariffs raised enough revenues to finance the government. The U.S. Mail was largely self supporting. During wars or to meet other needs additional income was secured by raising the tariff and excise tax rates. Short term and unanticipated capital needs (budget deficits) were usually covered by borrowing. The first unexpected cost was the Northwest Indian Wars in the Northwest Territory in the 1790s which required rebuilding the U.S. Army (the poorly trained militia were initially slaughtered) which had largely been disbanded after the Revolutionary War. Tariffs were adjusted up to cover these costs even as increased imports reduced the average tariff rates.



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