2. Excise or internal revenue duties.

Of these, much the greater sum is raised from customs duties. For the
year 1889,[1] the total net receipts were $387,050,058. Of this
$223,832,741 was derived from customs, and $130,894,434 from the
internal revenue duties. The sale of public lands yielded in that year
$8,038,651. The miscellaneous revenues amounted to $24,297,151.

[Footnote 1: For fiscal purposes the year begins July 1st.]

Customs or tariff duties are taxes which have to be paid on a large
class of goods imported into this country from foreign countries. These
charges are collected by Government collectors, stationed in all our
principal seaport cities, who inspect all incoming vessels and determine
the amount to be paid, according to the rate determined by Congress.
This system constitutes the so-called protective tariff policy of our
country. Those commodities not so taxed are said to be on the "free
list." How much, and on what articles these duties shall be levied, is
the question upon which the Republican and Democratic parties differ;
the former favoring high, and the latter low rates, that is to say
merely enough to support the Government, or, as it is termed, "a tariff
for revenue only."

Internal revenue duties are those taxes collected by the government from
its own citizens upon a small class of articles produced in this
country. The chief items of this class are distilled liquors, tobacco,
and oleomargarine. In 1889, out of the $130,894,434 received from
internal revenue, there was derived from spirits and fermented liquor
$98,036,041; tobacco, $31,866,861; oleomargarine and miscellaneous,