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protective tariff
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A tariff often has a protective effect on domestic (United States) businesses by increasing the costs of their competition.  If you owned a factory that produced computers, and there was a tariff imposing a $100 tax on all imported computers, then you would be thrilled because you could undersell the competition and make more profits.  Tariffs were often used to protect developing domestic industries, but were disliked by the South because the tariffs did not help them sell more cotton.  In fact, tariffs hurt them because it made it more costly for the farmers to buy the equipment and other materials they needed to produce their cotton.
 
A tariff often has a protective effect on domestic (United States) businesses by increasing the costs of their competition.  If you owned a factory that produced computers, and there was a tariff imposing a $100 tax on all imported computers, then you would be thrilled because you could undersell the competition and make more profits.  Tariffs were often used to protect developing domestic industries, but were disliked by the South because the tariffs did not help them sell more cotton.  In fact, tariffs hurt them because it made it more costly for the farmers to buy the equipment and other materials they needed to produce their cotton.
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In sum, remember this:  a "protective tariff: is a tax on imports which both raises money to fund the federal government '''and''' protects domestic manufacturers against imports.  An example today of a protective tariff would be a tax on the importation of Toyota cars in order to raise money and help General Motors and Ford compete more easily.
    
By 1800 decisions about tariffs and all other federal laws were being made in the marshy land now known as the District of Columbia.  This was a compromise between the North and the South.  Our capital was initially in New York City, but then Hamilton brokered a compromise with Jefferson whereby the capital would move to Philadelphia in 1791 for ten years, and then in D.C. starting in 1800.  In exchange, Hamilton was able to have the federal government assume the war debt.  So Washington suppressed the Whiskey Rebellion by riding from Philadelphia, not from Washington, D.C., because the capital was in Philadelphia at that time.
 
By 1800 decisions about tariffs and all other federal laws were being made in the marshy land now known as the District of Columbia.  This was a compromise between the North and the South.  Our capital was initially in New York City, but then Hamilton brokered a compromise with Jefferson whereby the capital would move to Philadelphia in 1791 for ten years, and then in D.C. starting in 1800.  In exchange, Hamilton was able to have the federal government assume the war debt.  So Washington suppressed the Whiskey Rebellion by riding from Philadelphia, not from Washington, D.C., because the capital was in Philadelphia at that time.
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