ith the principles
laid down by the philosophers. Great Britain alone among the larger
countries has, since 1846, steadily pursued a low tariff policy for
revenue only, and her example has been most nearly followed by Holland
and Denmark. Germany, which had always had restrictive duties, adopted
still more protective measures under Bismarck in 1879. France,
Italy, and most of the other nations of Europe have strong protective
tariffs. The United States has followed a restrictive policy since
near the beginning of the last century. The explanation of this
contradiction between precept and practice is not entirely simple.
Great interests are affected by foreign trade and certain of these
interests are able to influence opinion and to dominate legislation.
Free trade is not the most desirable thing for every one. The general
policy of free trade between nations, as advocated by most English
economists since Adam Smith, has usually been rejected by the people
and the legislators of other countries.

In its details American policy in tariff legislation under the
Constitution has been varied and vacillating. The changes have been
determined in most cases by motives of temporary partisan advantage or
by the political activity of the immediate beneficiaries rather than
by clear knowledge and consistent purpose of the electorate as a
whole. Thus its lessons for the student are largely of a negative
nature, but they well repay serious study.

Sec. 2. #Specific and _ad valorem_ rates.# Before entering upon the
history of the American policy let us make clear the meaning of
certain technical terms and explain certain methods which are
frequently referred to.

Rates (and duties) may be by either specific or _ad valorem. Specific
duties_ are those that are calculated and levied according to some
physical test, as so much per pound, per yard, per hundred-weight, or
per ton. _Ad valorem_ duties are those that are calculated and levied
according to the value of the goods (usually as it was at the place of
shipment) determined by an assessor, by invoice of sale, by statement
of the importer under oath, etc. The actual duty collected on any
article may result from various combinations of the two rates (as, to
take an actual example, $4.50 a pound and 25 per cent _ad valorem_
on cigars and cigarettes) or _ad valorem_ with a minimum valuation so
that on the cheaper goods the rate is specific.

Specific rates are more easily applied in