ORIGIN OF TARIFFS.

Timaru Herald, Volume CXXXIV, Issue 18817, 4 March 1931, Page 4

ORIGIN OF TARIFFS.

HISTORICAL SURVEY. HOW PROTECTION DEVELOPED. The United States’ new tariffs, coming at the time of the Empire Free Trade campaign in Britain ar °uses interest in the origin of tariff systems and their development in various countries. __ _ No one knows when or where the first tariff was imposed or the mst Customs duties collected. The collection of a toll or duty from goods breueht into a city or country became important with the development of trade to a considerable volume Although Babylon, one of the earliest civilisations of which we have a record, had a highly organised social system with a minute code of laws relating to deeds, leases, mortgages, taxation and the like, it is not known what part Customs played in the affairs of the Government. A country s revenue in those days aas chiefly from a tithe of the livestock and crops of its citizens. When Greece held the most important place in the world, duties on commodities moving in trade had come to be an accepted tax. Export prohibitions had also come in to use, chiefly as defence measures in time of war or as protective means to prepare against war Thus at times wheat could not be exported from Attica, and Greek ships that brought wheat from the Black Sea ports for re-export were compelled to leave one-third of their cargoes in Greece. Another feature of the Greek system was the establishment of foreign trading stations by certain cities which monopolised their trade. Both export and import duties were charged by Athens; and this taxation alike of outbound and inbound commerce was common among all the early tariff systems. Rome had little commerce in its early days and allowed commodities to come and go freely. When expansion set in and trade grew, the Government began to mould economic currents, often by direct methods. Some commercial rivals such as Carthage and Corinth, were destroyed. Other conquered countries were divided into districts, and Customs houses were set up at- the dividing lines. Both exports and imports were taxed. Rome’s tariff system was probably

closer to those in use to-day than any previous ones. The types of duties were the same that enter into current tariff discussions, specific and ad valorem. A specific duty is a charge per unit, so much for each yard or pound or dozen of the commodity taxed. An ad valorem duty is a percentage of the value of the commodity. In the early days of

the Roman Empire the most common ad valorem rate was 5 per cent. Latef it was raised to 124 per cent. Venice, the great trading republic of the Middle Ages, carried on the Roman tariff theories and went further. Her object was to obtain a monopoly in the handling of Eastern goods and to regulate by duties the trade with the West and NorthThe Mameluke rulers of Egypt held a strategic position in regard to Eastern trade during the Middle Ages, and put on as heavy duties as the tariff would bear. As a result of the tolls imposed by them and by tribal chiefs in Arabia-, Indian goods increased by 300 per cent, in price between India and Europe. In the end the Mamelukes defeated their purpose. The Mongols who gained control of an overland route farther north charged lesser duties and the trade flowed over the new route. After Vasco da Gama found the ocean path to the East both the Egvptian and the overland route gave way to the cheaper dutyfree water route. j About this time Marco Polo, travelling in China, found that duties were charged there in the realm of the great Khan. He found duties collected at citv boundaries as well as at provincial frontiers. These duties ranged from 3 1-3 to 10 per cent. In medieval Eurooe tariffs became a nightmare to struggling traders. Every petty prince and feudal lord set up his toll gates and customs houses and took a share of the merchant’s wares. After the feudal kings took over the barons’ privileges, there was a movement away from the collection of duties in every small area, but progress was slow, and In some countries, such as France and Germany. provincial customs continued to be levied. It is almost universally recognisea now that tariffs should be imposed bv national units, and that they should apply to imports, not exports. In early ages tariffs constituted a minor factor in national taxation. To-day they are in most countries the most important source of national revenue.