The Underwood Tariff of 1913, proposed by Representative Oscar Underwood and signed into law by President Woodrow Wilson, was a significant piece of legislation that influenced the Progressive Era. The act lowered tariffs on consumer goods and raw materials, leading to reduced prices for the American public. This reduction in tariffs aimed to address concerns about high living expenses and promote greater competition in the marketplace, while also generating revenue through other means, such as a graduated income tax. The Underwood Tariff played a pivotal role in shaping economic policies, social welfare programs, and the political landscape of the early 20th century United States.
The Underwood Tariff of 1913
The Underwood Tariff of 1913 was a significant piece of legislation that lowered tariffs on imported goods. It was passed by the Democratic-controlled Congress and signed into law by President Woodrow Wilson. The tariff had a number of goals, including:
- Reducing the cost of living for American consumers
- Increasing competition in the American economy
- Promoting free trade
The tariff was structured as follows:
- Ad valorem duties: These duties were based on the value of the imported goods.
- Specific duties: These duties were based on the quantity of imported goods.
- Compound duties: These duties were a combination of ad valorem and specific duties.
The tariff also included a number of provisions that allowed for the free importation of certain goods, such as raw materials and machinery.
Impact of the Underwood Tariff
The Underwood Tariff had a number of significant impacts on the American economy. It lowered the cost of living for American consumers, increased competition in the American economy, and promoted free trade. The tariff also helped to reduce the federal deficit.
Controversy Over the Underwood Tariff
The Underwood Tariff was a controversial piece of legislation. Critics argued that it would harm American businesses and lead to job losses. Supporters of the tariff argued that it would benefit American consumers and promote free trade. The tariff was ultimately repealed in 1930 by the Smoot-Hawley Tariff Act.
Table of Key Provisions of the Underwood Tariff
| Provision | Description |
|---|---|
| Ad valorem duties | Duties based on the value of the imported goods |
| Specific duties | Duties based on the quantity of imported goods |
| Compound duties | Duties that were a combination of ad valorem and specific duties |
| Free list | List of goods that could be imported duty-free |
Question 1: Define the Underwood Tariff of 1913.
Answer: The Underwood Tariff of 1913 was a revenue-generating measure that lowered import duties on most goods, shifted the basis of valuation for duties from wholesale to foreign market value, and established a graduated income tax.
Question 2: What were the key provisions of the Underwood Tariff?
Answer: The Underwood Tariff included provisions to lower import duties, shift the basis of valuation for duties to foreign market value, and establish a graduated income tax.
Question 3: How did the Underwood Tariff affect American trade and industry?
Answer: The Underwood Tariff lowered tariffs, increased trade, and contributed to the growth of American industry by reducing the cost of imported raw materials and encouraging exports.
Well, there you have it, folks. The Underwood Tariff of 1913, in a nutshell. It was a big deal at the time, but hey, things change. So, thanks for hanging out with me while we dug into this bit of history. If you’re curious about other stuff that went down back in the day, be sure to swing by again. I’ll be here, ready to dish out some more history nuggets!