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branches　are　suitably　protected　and　developed；　all　other　less



important　branches　of　manufacture　will　rise　up　around　them　under　a



less　degree　of　protection。　It　will　be　to　the　advantage　of　nations



in　which　wages　are　high；　and　whose　population　is　not　yet　great　in



proportion　to　the　extent　of　their　territory；　e。g。　in　the　United



States　of　North　America；　to　give　less　protection　to　manufactures　in



which　machinery　does　not　play　an　important　part；　than　to　those　in



which　machinery　does　the　greater　part　of　the　work；　providing　that



those　nations　which　supply　them　with　similar　goods　allow　in　return



free　importation　to　their　agricultural　products。



　　　　The　popular　school　betrays　an　utter　misconception　of　the　nature



of　national　economical　conditions　if　it　believes　that　such　nations



can　promote　and　further　their　civilisation；　their　prosperity；　and



especially　their　social　progress；　equally　well　by　the　exchange　of



agricultural　products　for　manufactured　goods；　as　by　establishing　a



manufacturing　power　of　their　own。　A　mere　agricultural　nation　can



never　develop　to　any　considerable　extent　its　home　and　foreign



commerce；　its　inland　means　of　transport；　and　its　foreign



navigation；　increase　its　population　in　due　proportion　to　their



wellbeing；　or　make　notable　progress　in　its　moral；　intellectual；



social；　and　political　development：　it　will　never　acquire　important



political　power；　or　be　placed　in　a　position　to　influence　the



cultivation　and　progress　of　less　advanced　nations　and　to　form



colonies　of　its　own。　A　mere　agricultural　State　is　an　infinitely



less　perfect　institution　than　an　agricultural　manufacturing　State。



The　former　is　always　more　or　less　economically　and　politically



dependent　on　those　foreign　nations　which　take　from　it　agricultural



products　in　exchange　for　manufactured　goods。　It　cannot　determine



for　itself　how　much　it　will　produce；　it　must　wait　and　see　how　much



others　will　buy　from　it。　These　latter；　on　the　contrary　（the



agricultural…manufacturing　States）；　produce　for　themselves　large



quantities　of　raw　materials　and　provisions；　and　supply　merely　the



deficiency　by　importation　from　the　purely　agricultural　nations。　The



purely　agricultural　nations　are　thus　in　the　first　place　dependent



for　their　power　of　effecting　sales　on　the　chances　of　a　more　or　less



plentiful　harvest　in　the　agricultural…manufacturing　nations；　in　the



next　place　they　have　to　compete　in　these　sales　with　other　purely



agricultural　nations；　whereby　their　power　of　sale；　in　itself　very



uncertain；　thus　becomes　still　more　uncertain。　Lastly；　they　are



exposed　to　the　danger　of　being　totally　ruined　in　their　trading　with



foreign　manufacturing　nations　by　wars；　or　new　foreign　tariff



regulations　whereby　they　suffer　the　double　disadvantage　of　finding



no　buyers　for　their　surplus　agricultural　products；　and　of　failing



to　obtain　supplies　of　the　manufactured　goods　which　they　require。　An



agricultural　nation　is；　as　we　have　already　stated；　an　individual



with　one　arm；　who　makes　use　of　a　foreign　arm；　but　who　cannot　make



sure　of　the　use　of　it　in　all　cases；　an　agricultural…manufacturing



nation　is　an　individual　who　has　two　arms　of　his　own　always　at　his



disposal。



　　　　It　is　a　fundamental　error　of　the　school　when　it　represents　the



system　of　protection　as　a　mere　device　of　speculative　politicians



which　is　contrary　to　nature。　History　is　there　to　prove　that



protective　regulations　originated　either　in　the　natural　efforts　of



nations　to　attain　to　prosperity；　independence；　and　power；　or　in



consequence　of　wars　and　of　the　hostile　commercial　legislation　of



predominating　manufacturing　nations。



　　　　The　idea　of　independence　and　power　originates　in　the　very　idea



of　'the　nation。'　The　school　never　takes　this　into　consideration；



because　it　does　not　make　the　economy　of　the　separate　nation；　but



the　economy　of　society　generally；　i。e。　of　the　whole　human　race；　the



object　of　its　investigations。　If　we　imagine；　for　instance；　that　all



nations　were　united　by　means　of　a　universal　confederation；　their



individual　independence　and　power　would　cease　to　be　an　object　of



regard。　The　security　for　the　independence　of　every　nation　would　in



such　a　case　rest　on　the　legal　provisions　of　the　universal　society；



just　as　e。g。　the　security　of　the　independence　of　the　states　of



Rhode　Island　and　Delaware　lies　in　the　union　of　all　the　free　states



constituting　the　American　Union。　Since　the　first　foundation　of　that



Union　it　has　never　yet　occurred　to　any　of　these　smaller　states　to



care　for　the　enlargement　of　its　own　political　power；　or　to　consider



its　independence　less　secured　than　is　that　of　the　largest　states　of



the　Union。



　　　　In　proportion；　however；　as　the　principle　of　a　universal



confederation　of　nations　is　reasonable；　in　just　the　same　degree



would　a　given　nation　act　contrary　to　reason　if；　in　anticipation　of



the　great　advantages　to　be　expected　from　such　a　union；　and　from　a



state　of　universal　and　perpetual　peace；　it　were　to　regulate　the



principles　of　its　national　policy　as　though　this　universal



confederation　of　nations　existed　already。　We　ask；　would　not　every



sane　person　consider　a　government　to　be　insane　which；　in



consideration　of　the　benefits　and　the　reasonableness　of　a　state　of



universal　and　perpetual　peace；　proposed　to　disband　its　armies；



destroy　its　fleet；　and　demolish　its　fortresses？　But　such　a



government　would　be　doing　nothing　different　in　principle　from　what



the　popular　school　requires　from　governments　when；　because　of　the



advantages　which　would　be　derivable　from　general　free　trade；　it



urges　that　they　should　abandon　the　advantages　derivable　from



protection。



　　　　War　has　a　ruinous　effect　on　the　reciprocal　commercial　relations



between　nation　and　nation。　The　agriculturist　living　in　one　country



is　by　it　forcibly　separated　from　the　manufacturer　living　in　another



country。　While；　however；　the　manufacturer　（especially　if　he　belongs



to　a　nation　powerful　at　sea；　and　carrying　on　extensive　commerce）



readily　finds　compensation　from　the　agriculturists　of　his　own



country；　or　from　those　of　other　accessible　agricultural　countries；



the　inhabitant　of　the　purely　agricultural　country　suffers　doubly



through　this　interruption　of　intercourse。



　　　　The　market　for　his　agricultural　products　will　fail　him



entirely；　and　he　will　consequently　lose　the　means　of　paying　for



those　manufactured　goods　which　have　become　necessaries　to　him　owing



to　previously　existing　trade；　his　power　both　of　production　and



consumption　will　be　diminished。



　　　　If；　however；　one　agricultural　nation　whose　production　and



consumption　are　thus　diminished　by　war　has　already　made



considerable　advances　in　population；　civilisation；　and　agriculture；



manufactures　and　factories　will　spring　up　in　it　in　consequence　of



the　interruption　of　international　commerce　by　war。　War　acts　on　it



like　a　prohibitive　tariff　system。　It　thereby　becomes　acquainted



with　the　great　advantages　of　a　manufacturing　power　of　its　own；　it



becomes　convinced　by　practical　experience　that　it　has　gained　more



than　it　has　lost　by　the　commercial　interruptions　which　war　has



occasioned。　The　conviction　gains　ground　in　it；　that　it　is　called　to



pass　from　the　condition　of　a　mere　agricultural　State　to　the



condition　of　an　agricultural…manufacturing　State；　and　in



consequence　of　this　transition；　to　attain　to　the　highest　degree　of



prosperity；　Civilisation；　and　power。　But　if　after　such　a　nation　has



already　made　considerable　progress　in　the　manufacturing　career



which　was　opened　to　it　by　war；　peace　is　again　established；　and



should　both　nations　then　contemplate　the　resumption　of　their



previously　existing　commercial　intercourse；　they　will　both　find



that　during　the　war　new　interests　have　been　formed；　which　would　be



destroyed　by　re…establishing　the　former　commercial　interchange。（1*）



The　former　agricultural　nation　will　feel；　that　in　order　to　resume



the　sale　of　its　agricultural　products　to　the　foreigner；　it　would



have　to　sacrifice　its　own　manufacturing　industry　which　has　in　the



meanwhile　been　created；　the　manufacturing　nation　will　feel　that　a



portion　of　its　home　agricultural　production；　which　has　been　formed



during　the　war；　would　again　be　destroyed　by　free　importation。　Both；



therefore；　try　to　protect　these　interests　by　means　of　imposing



duties　on　imports。　This　is　the　history　of　commercial　politics



during　the　last　fifty　years。



　　　　It　is　war　that　has　called　into　existence　the　more　recent



systems　of　protection；　and　we　do　not　hesitate　to　assert；　that　it



would　have　been　to　the　interest　of　the　manufacturing　nations　of　the



second　and　third　rank　to　retain　a　protective　policy　and　further



develop　it；　even　if　England　after　the　conclusion　of　peace　had　not



committed　the　monstrous　mistake　of　imposing　restrictions　on　the



importation　of　necessaries　of　life　and　of　raw　materials；　and



consequently　of　allowing　the　motives　which　had　led　to　the　system　of



protection　in　the　time　of　the　war；　to　continue　during　peace。　As　an



uncivilised　nation；　having　a　barbarous　system　of　agriculture；　can



make　progress　only　by　commerce　with　civilised　manufacturing



nations；　so　after　it　has　attained　to　a　certain　degree　of　culture；



in　no　other　way　can　it　reach　the　highest　grade　of　prosperity；



civilisation；　and　power；　than　by　possessing　a　manufacturing



industry　of　its　own。　A　war　which　leads　to　the　change　of　the　purely



agricultural　State　into　an　agricultural…manufacturing　State　is



therefore　a　blessing　to　a　nation；　just　as　the　War　of　Independenc