Hamilton tariff
Encyclopedia
The Hamilton Tariff was the second statute
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...

 ever enacted by the new federal government of the United States
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...

 by a vote of the first U.S. Congress. Most of the rates of the revenue tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....

 were between 5 and 10 percent, depending on the value of the item. Secretary of the Treasury
United States Secretary of the Treasury
The Secretary of the Treasury of the United States is the head of the United States Department of the Treasury, which is concerned with financial and monetary matters, and, until 2003, also with some issues of national security and defense. This position in the Federal Government of the United...

 Alexander Hamilton
Alexander Hamilton
Alexander Hamilton was a Founding Father, soldier, economist, political philosopher, one of America's first constitutional lawyers and the first United States Secretary of the Treasury...

 was anxious to establish the tariff as a regular source of government revenue and to encourage the growth of domestic manufacturing to lessen America's then-heavy dependence on foreign-made products. It also established the United States Customs Service
United States Customs Service
Until March 2003, the United States Customs Service was an agency of the U.S. federal government that collected import tariffs and performed other selected border security duties.Before it was rolled into form part of the U.S...

.

The Hamilton Tariff and much of Hamilton's financial plan can be attributed as one of the causes of the schism in the Federalist Party. It facilitated the growth of Northern
Northern United States
Northern United States, also sometimes the North, may refer to:* A particular grouping of states or regions of the United States of America. The United States Census Bureau divides some of the northernmost United States into the Midwest Region and the Northeast Region...

 manufacturers by having the imported goods absorb the federal treasury's financial needs but harmed Southern
Southern United States
The Southern United States—commonly referred to as the American South, Dixie, or simply the South—constitutes a large distinctive area in the southeastern and south-central United States...

 farmers by making foreign-made products more expensive. This factor was one of the major causes of the Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...

.
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