The first general tariff was that enacted December 20, 1836.3 It levied only ad valorem duties, which varied from 1% on bread-stuffs to 50% on silk goods. Sugar and coffee were charged 21/2%; coarse clothing and shoes, such as were worn by slaves, 10%; iron, 10%; wines, and spirituous and malt liquors, 45%; all unenumerated goods, which included articles of most common use, 25%. The policy manifested in this act of light duties upon necessaries and heavier ones upon luxuries was adhered to in all subsequent tariff measures. In June, 1837, there was a more detailed act, in which specific duties were largely substituted for ad valorem.4 Its general trend, however, was only slightly in the direction of higher duties. Cotton goods were charged 15%; boots and shoes, 25%, as compared with 10% under the former act, Breadstuffs, provisions, groceries, meats, malt liquors, coal, seeds, wearing apparel in use, tools of trade, firearms, and building materials were put on the free list. There were further additions to the free list in December, 1837, for the benefit of immigrants.1 The act of February 5, 1840, returned to the original policy of ad valorem duties, and, except for wines and liquors, which were charged the same specific duties as formerly, a uniform ad valorem rate of 15% was levied.2 The free list was narrowed to include only the household furniture, wearing apparel, wagons, necessary farming implements, and tools of trade, brought in by immigrants for their own use, and books. Provision also was made by this act for drawbacks on goods exported to noncontiguous countries, and for carrying out the commercial treaty with France. According to the terms of this treaty, which went into effect February 15, 1840, reciprocal treatment of the vessels and imports of each nation was accorded, and Texas agreed to admit French silks, imported direct in French or Texas ships, at one-half of the former tariff rates, and to reduce the duties on French wines by two-fifths and on brandies by one-fifth. President Lamar, seeking to influence the French government to guarantee the proposed Texan loan, issued a proclamation on February 11, 1840, abolishing the duties on French wines.3 Treaties of amity, commerce, and navigation were signed also with Great Britain and the Netherlands.4 As there were no Texas vessels engaged in the foreign trade, and as the direct commerce with these nations was insignificant, the treaties were largely so much paper, and customs receipts were not affected.5

1 House Executive Document, 24th Cong., 2d. Sess., No. 35. U. S. Doc. 635.

2 Art. II, sec. 1 of the constitution of the republic provides: Congress shall have power to lay and collect taxes and imposts, excise and tonnage duties.

3 Gammel, op. cit., vol. 1, pp. 1207-8.

4 Act of June 12, 1837; ibid., pp. 1313-19.

1 Act of December 18, 1837; Gammel, op. cit, vol. 1, p. 1422. Sugar, coffee, tea, salt, flour, all kinds of breadstuffs, iron, steel, household furniture, cotton bagging, bale rope, books, machinery of all kinds, wagons, and implements, brought in by immigrants for their own use, were free.

2 Ibid., vol. 2, pp. 209-225.

3 For treaty and proclamation, see Gammel, op. cit., vol. 2, p. 655.

4 That with Great Britain was signed in September, 1842; that with the Netherlands in January, 1843; Gammel, op. cit., vol. 2, pp. 880-5, 905-12.

5 The commerce of Texas was overwhelmingly with the United States. The imports from August 1, 1844, to October 31, 1845, were $1,204,370, and of this total $1,151,733 came from the United States, $9,466 from Great Britain and Ireland, and $2,048 from France.

The act of 1840 represents the closest approach to free trade that was made at any time in the history of the republic. Owing to the depreciation of the currency in which duties were paid, the actual rate was nearer 3% than 15%, and in 1841, in order to adapt the government receipts to the depreciation, all specific rates were doubled and the uniform ad valorem rate of 15% was trebled, except for sugar, coffee, salt, iron, and steel, which remained unchanged.1 In January, 1842, the number of articles subject to specific duties was increased, and the average rate imposed by the act was about 25%. Besides the necessary equipment brought in by immigrants, only Bibles, testaments, primary school books, and livestock were admitted free. An additional duty of 5% was imposed on all goods imported in foreign bottoms, except where otherwise provided by treaty or act of congress.2 The improvement in the condition of the currency under Houston accompanied, and was in part responsible for, this change from the high nominal rates of 1841.

There were no further changes in the tariff during the remainder of the period. The Eighth Congress passed a bill that would have reduced duties to an average of about 17%, but it was vetoed by President Houston on the ground that the republic could not afford to reduce the revenue.3 Under the Ninth Congress, suggestions for reduction, reciprocity, and incidental protection were made, but except for admitting ice free of duty, no changes were made.

The average rate of the customs duties levied by the republic was not far from 25 per cent.1 There was no great variation from this except under Lamar in 1840 and 1841. Throughout the period of the republic the object of the tariff was revenue; the only important suggestion of a different policy was that made by President Jones that the tariff should be primarily for revenue and incidentally for protection to agriculture and industries.2

1 Act of February 5, 1841; Gammel, op. cit., vol. 2, p. 576. Message of President Lamar, November 1, 1840. Kennedy, Texas, vol. 2, p. 362.

2 This discriminating duty aimed at the United States, with whom there was no commercial treaty. See Minority Report of the Senate Finance Committee, January 6, 1845, in Senate Journal, 9th Tex. Cong., p. 120. The receipts due to this 5 per cent augmentation were for the period August 1, 1844, to October 31, 1845, $34,476 out of total duties paid of $310,473. Report of the Secretary of the Treasury, February 15, 1846; Senate Journal, 1st Leg., appendix. For act of January 27, 1842, see Gammel, op. cit., vol 2, pp. 734-7.

3 Veto message, February 5, 1844; Executive Record, No. 40. According to the Telegraph and Texas Register, February 14, 1844, little public notice was taken of the veto in view of contemplated annexation.