Alexander Hamilton found himself in conflict with Thomas Jefferson, especially when Hamilton produced his "Report on Manufactures" in 1790. Jefferson detested the idea that manufacturing (and indeed industrial capitalism, as then understood) would ever become part of the American economic landscape, while Hamilton ridiculed the notion of the United States ever being strong by relying on merchants in ports and yeoman farmers. Eventually, Congress got around to seeing Hamilton's way, and enacted a tariff on imported manufactured goods. What else did that tax on imports accomplish

b. The high tariff not only became, until 1860, the main source of Federal revenues -- it also had the effect of allowing indigenous American manufacturing firms to become price-competitive with their European (especially British) competition.

Explanation:

According to a different source, these are the options that come with this question:

a. Import duties replaced all the revenue lost after the Whiskey Rebellion resulted in the end of taxes on locally-distilled adult beverages.

b. The high tariff not only became, until 1860, the main source of Federal revenues -- it also had the effect of allowing indigenous American manufacturing firms to become price-competitive with their European (especially British) competition.

c. High taxes on imported goods had zero impact on the growing estrangement of the South from the North.

d. High tariffs created incentives for smuggling massive amounts of contraband from Spanish and French pirates headquartered in New Orleans and Miami.

This question refers to the Tariff Act of 1789. This was signed into law by President George Washington, becoming one of the first important laws passed by Congress. This law was primarily supported by Alexander Hamilton. The law had two important effects. First, it allowed American manufactured goods to become more competitive. Second, it became the federal government's main source of revenue until income tax was introduced in 1913.

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