Tariff
A tariff is called an optimal tariff if it's set to maximize the welfare of the country imposing the tariff. It is a tariff derived by the intersection between the "trade indifference curve" of that country and the offer curve of another country. In this case, the welfare of the other country grows worse simultaneously, thus the policy is a kind of "beggar thy neighbor policy". If the offer curve of the other country is a line through the origin point, the original country is in the "condition of a small country", so any tariff worsens the welfare of the original country.
First Report on the Public Credit
A consensus arose in Congress that the primary source of revenue be tariff and tonnage duties. These fees would serve to cover operating expenses for the central government as well as to pay interest and principal on foreign and domestic debt. Under the guidance of Representative James Madison, leader of the House, a tariff act was passed on July 4, 1789.