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From: Webster's Revised Unabridged Dictionary (1913)

 Sub·si·dy n.; pl. Subsidies
 1. Support; aid; cooperation; esp., extraordinary aid in money rendered to the sovereign or to a friendly power.
    They advised the king to send speedy aids, and with much alacrity granted a great rate of subsidy.   --Bacon.
 Note:Subsidies were taxes, not immediately on on property, but on persons in respect of their reputed estates, after the nominal rate of 4s. the pound for lands, and 2s. 8d. for goods.
 2. Specifically: A sum of money paid by one sovereign or nation to another to purchase the cooperation or the neutrality of such sovereign or nation in war.
 3. A grant from the government, from a municipal corporation, or the like, to a private person or company to assist the establishment or support of an enterprise deemed advantageous to the public; a subvention; as, a subsidy to the owners of a line of ocean steamships.
 Syn: -- Tribute; grant.
 Usage: Subsidy, Tribute. A subsidy is voluntary; a tribute is exacted.