Columbia clnilirrsitP intheCiipafllftt'Pork LIBRARY THE SELIGMAN LIBRARY OF ECONOMICS PURCHASED BY THE UNIVERSITY 1929 k 11 I875- ? S National Self-Protection. BY JOSEPH WHARTON. REPRINTED BY PERMISSION FROM THE ATLANTIC MONTHLY. PHILADELPHIA: THE AMERICAN IRON AND STEEL ASSOCIATION, No. 265 South Fourth Street. 1875 . PRINTED BY JAMES B. CHANDLER, CHESTNUT STREET. 1 875 - ms a W 55 NATIONAL SELF-PROTECTION. The doctrine of Protection to Home Industry, no matter by what means, grows directly and inevitably from the idea of nationality. If all mankind composed an undifferentiated protoplasmic mass, comparable to one of Carlyle’s mud continents, probably no pref¬ erence for one set of associates would be felt, but investigation does not show such a condition ever to have existed: man’s disposi¬ tion to form nations seems always to have prevailed, and there is absolutely no reason to suppose it will ever be eradicated. It is clear that the formation of nations implies the sharp separation of each from all others. Each nation is a distinct entity, having its clearly defined di¬ mensions and limits, its own organic law and life, its own pur¬ poses and career, its own resources and modes of action: this sepa¬ rate existence and these attributes it possesses, not because cer¬ tain philosophers so ordain or consent, but because the com¬ ponent individuals of the nation, or the strongest of them, so will and so cohere with a force paramount to all antagonistic forces. The nation exists of itself and for itself—not by the grace or for the benefit of any beyond its boundaries. The nation’s chief duty is to attend scrupulously to its own wel¬ fare. It is to pursue its own ends by its own means, strenuously perfecting its organic law and enhancing its internal vigor, while also growing outwardly so far as it may do so with prudence and without trenching upon the rights or meddling with the affairs of others. In thus pursuing with diligence its own advancement, it necessarily acts with pure selfishness, tempered as that selfishness may be by enlightened regard for the rights of others. Although nations may agree between themselves to unite their efforts permanently for certain purposes, such as the suppression of 4 piracy, and certain of them may from time to time form temporary alliances for specific objects, these arrangements are always based upon the advantage to be derived by each contracting party. No voluntary and gratuitous bestowal or surrender of an advantage is for a moment thought of, and when a pretence is made of a so- called nobler motive, it may safely be assumed to cover schemes that would not bear the light. It cannot be seriously disputed that this exclusive property of each nation in itself, this assiduous caring by each for its own special weal, and this watchful semi-antagonistic attitude of each towards its neighbors, have the same beneficial effect upon each that comes to individuals from each person being perfectly convinced that his fate depends upon his own exertion of his faculties—that his task is to till his own field and mind his own family and business, being well assured that he and his, and not others, shall reap the harvest and enjoy the fruits of diligence and thrift. The common sense of all times and peoples has approved the wisdom of thus cleaving fast to one’s own in the nation just as in the family, for the population incapable of steadfast love and loy¬ alty to country becomes debased as surely as the man or woman incapable of steadfast faith in marriage. In either case Free Love leads to ruin. Rivalry, perhaps without enmity, and antagonism, perhaps without animosity, constantly animate the nations in their atti¬ tudes toward each other; each standing ready to win from another wealth, population, or territory which the other may be unable to retain. The old-fashioned way of gaining population from a neighbor¬ ing country by invading it and carrying off its inhabitants as slaves is no longer practiced by civilized nations, and the acquisition of territory by similar means is perhaps not so frequent as it once was, but the newer style of aggrandizement by winning the wealth of a neighbor through industrial assaults and trade invasions is now in the fullest activity. In this modern and highly civilized style of warfare, improved machinery takes the place of improved artillery; the enemy’s forces his industrial population—are driven from their guns by 5 missiles of textiles and metal wares, and are destroyed in their homes by starvation rather than by bullets in the field. It is clear that the patriotism which can sleep through this in¬ dustrial warfare and suffer this trade spoliation, and can only be roused into activity by the danger and passion of flagrant war; which can vote the public money to maintain rarely used armies, navies and forts, but cannot give the slightest aid or comfort to the real and constant defenders of its country's independence—its industrial soldiers,—is a patriotism belonging to periods long gone by, and is of little more present use than a bow and arrow. The spirit of loyalty is forever the same, but it must now learn to promote its country’s welfare by the arts of peace, pursuing its ancient and honorable aim by the new methods. One branch, or perhaps the main trunk, of the controversy between Free Trade and Protection begins here, for some moralists count this peaceful patriotism as of doubtful propriety, it being in their opinion not consonant with the spirit of universal philan¬ thropy which ought to rule in Christendom. But against this view stands the patent fact that no less in peace than in war all mankind have knit themselves into nations, and have found self- preservation as necessary for nations as for individuals. Any community holding slip-shod ideas on this point dissolves, and perishes as a body from incompetence to survive. Doubtless the most important peaceful means by which a modern nation protects itself, is that of tariff legislation. By tariff 1 laws, which exact in advance from the foreign producer or his merchant a part of the price to be paid for his goods in the protected country, the native producers and their factories are sheltered at their work somewhat as are the crew, engines, and armament of a modern war vessel by its armor. Without looking deeply into the history of tariff" laws, we find that import duties were levied for revenue by Greeks and Romans, and that in the middle ages, when Europe was split into countless petty jurisdictions, the same rudeness marked the tariffs of its dif¬ ferent parts as characterized their other legislation, the transporta¬ tion of merchandise being thereby grievously harassed. It was subject not merely to a single payment of uniform, regular and 6 publicly declared duties on passing the frontier from one great na¬ tion to another, but capricious and complicated charges were made even in passing from one province to another of the same kingdom. The abolition of all those internal transit duties and complica¬ tions, and the substitution for them of a single clear law governing a whole great empire—“ the removal of all custom houses to the frontier,” as was done for France by Colbert, in the reign of Louis XIV, was a gain for the solidity of States and for humanity which at this period can with difficulty be appreciated. The latest and one of the most beneficent instances of the removal of such internal tariffs is the formation in Germany of the Zoll verein, or Customs-union,* by the numerous states which now compose the German Empire. Upon this point, as on so many others, the United States started where older nations arrived after long efforts ; that is, with perfect free trade between all parts of the great nation, and an absolute cordon of separation from all other nations around its entire frontier in respect to tariff laws as to all other laws. It must be observed that only when the common interests of contiguous regions so prevail over their differences as to draw them into political unity, with a common treasury and boundary, may the customs frontier between them be abrogated. The provinces of old France were at least semi-independent states, and the abolition of their inter-provincial tariffs was merely an incident of their coalescing into a compact nation. The Zoll- verein was but the precursor of the union of states even more independent, now composing the German Empire. Tariffs for entire kingdoms or empires having been thus generally established, each nation has experimented upon revenue tariffs ail'd protective tariffs as the good pleasure or policy of its rulers from time to time dictated—England especially, after having acquired the Protestant industrial refugees of France and Flanders, who brought with them so many valuable arts, having been perhaps more ferociously protective than any other country until about a generation ago. A temporary superiority over all other nations in * See Prof Thompson’s Social Science and National Economy, pages 337 to 341, for an account of the Zollverein. 7 its resources of coal and iron and in the development of its skilled labor then induced its rulers, the manufacturing and trading classes, to make its tariffs much less restrictive, while yet kept in exactly the condition deemed most advantageous for England, (for England at this moment draws a considerable part of her national revenue from import duties upon our tobacco and whisky,) they hoping to tempt other and less developed nations to follow by removing their tariffs upon British manufactures. The system of regulating the commerce and influencing the in¬ dustry of a nation by import duties, while at the same time re¬ plenishing its treasury, has grown up by slow degrees to such com¬ pleteness as we now find, covering each nation as the skin covers each animal; it is an integral part of the plan of government in every country that is even slightly raised above barbarism ;* to abandon it would be not merely to renounce an important part of the public revenue, but would also leave to chance or rather to the mercy of rivals and enemies the maintenance of industries neces¬ sary to independence. It would at the same time be an abandon¬ ment, by any nation not already at the head, of all attempt to reach equality with other nations in the difficult but lucrative and con¬ stantly advancing arts of modern civilization. After all the grievous toils and varied experience of many coun¬ tries in their struggles to attain industrial independence and to share in modern progress, it would hardly be necessary to reiterate the story of those which fail and those which succeed, if the one way to success and the principal way to failure were not persist¬ ently misrepresented by a clique of false teachers as clamorous, as regardless of facts, and as logical as the crowds of sophists whose wordy disputations marked the decadence of Grecian supremacy. Assuming for their dogmas an infallibility as absolute as that * The most recent testimony that I find as to the universality of the protective system is that of George T. Clark, for twenty years an ironmaster in South Wales. In an article in the London Economist of March 13, 1875, lamenting the condition of the English iron trade, he says: “Unfortunately, foreign countries are all at this time far behind England in their appre¬ ciation of the benefits of free trade. To it a] most gll foreign nations are, at the least, indifferent, and all foreign governments, whether monarchical or democratic, are opposed.” At the last meeting of the Cobden Club, the Chairman, Right Hon. W. E Baxter, remarked, “ My friend, Mr. Potter, said that this Cobden Club was the nucleus of Free-Trade sentiment all over the world. Gentlemen, there is no other nucleus.” claimed by the Pope for his dicta, though unsupported by any of that reverend age and past service to mankind which clothe the Church with dignity, and preaching everywhere the superior claims of their strange creed over the mere bonds of patriotism, so that the revenues, the development, and the existence of States are to perish in order that their fungus, Trade Philanthropy, may fatten for a while upon the decay, these verbose prophets of the new philo¬ sophy have become a nuisance and a source of infection which healthy political organisms can hardly afford to tolerate. Since they come forward aiming to overthrow the settled and universal order of national policy, it is for them to show cause for the revolution. What are their claims ? I understand them to be— 1. That, in regard to free interchange of commodities, man has certain natural rights, and that no interference should be tolerated by the individual who wishes to exchange anything he has for anything that another possesses and is willing to give for it. 2. That this inherent right is the same between individuals of different nations as between those of the same nation ; that hence no restrictions or impositions, should be laid upon international exchanges. 3. That, by the removal of all barriers to trade, a world-wide and open competition is established, by means of which each coun¬ try and region finally succeeds in defeating all others in the pro¬ duction of certain commodities, by the exchange of which for the similarly cheapest productions of other regions, universal and cheap plenty of all desiderata is to be attained. 4. That full compliance by all mankind with these rules would result, as obedience to divine law must, in the greater happiness of all mankind; that all nations and individuals so believing should, therefore, strive by all means to cause other nations to adopt the system of free exchanges. Descending from these lofty and world-wide considerations, the Free Traders further contend that, 5. The nation which undertakes to collect revenue by duties upon imported goods takes the most costly and absurd method of tax¬ ing its people, out of whose pockets all that revenue comes. 9 6. In charging import duty upon foreign products, especially manufactures, the government is paying bounties from the treasury to those natives who are engaged in producing similar commodities, since the amount charged as duty is invariably added by the na¬ tive to what would otherwise be his price. 7. Thus the government actually takes money out of the pocket of one of its citizens and puts it into the pocket of another—con¬ fiscates one citizen’s property for the benefit of another. 8. The result is to foster at the public cost industries not suited to the mineral, vegetable or climatic resources of the country, and to force consumers to pay perpetually to the producers of such ar¬ ticles higher prices than they otherwise would have to pay, and that mostly for inferior goods. 9. The agricultural class is the one principally aggrieved, since its products are usually unprotected while it must consume pro¬ tected goods. 10. The laboring classes in general, even those employed in the protected manufactures, are plundered by import duties, since by import duties prices of all commodities and necessaries of life are raised, so that the laborer’s wages, even if nominally higher, will not buy so many necessaries and comforts as wages of similar laborers in free trade countries. 11. General stagnation, destruction of industry, corruption of morals and ruin must end the scene in all protected countries, while free trade countries must attain high prosperity. So far as space will permit, I shall now pass in review these sev¬ eral points, referring to them by the above numbers. 1. “I assume that there are such rights as are called natural, and that these are the inalienable conditions under which indi¬ viduals take part in social life. No one questions the natural right of free exchange.”* The right to property being itself conventional—a product of society and by no means inherent, since possession in the savage state is limited by the power of forcible holding against all comers, it is idle to talk of such an attribute of property as the right of free exchange, belong- Prof. J. E. Thorold Rogers. 10 ing inherently and unconditionally to its owner. Society has in¬ deed consented to and guarantees the exclusive possession of prop¬ erty by an owner, but that exclusive possession has always been accompanied by just such conditions as the community thought expedient to impose, the exclusive possession as well as the con¬ ditions being justified in the last resort not by the convenience of the individual, but by the good of the community. Taxes form one of these conditions which all are familiar with, and these are imposed not only on the property once for all, as in excise, or annually as in taxes upon real estate, but very frequently upon sale or conveyance of property, as by stamps, license or otherwise. Instead of the right of free exchange being an inherent right or necessary adjunct to the right of property, it would be much more nearly correct to say that an inherent quality of all property is its liability to taxation, and even more so when in the act of being ex¬ changed than when reposing in a settled ownership. Freedom of exchange exists to just such degree as the State ordains. Some exchanges or sales it absolutely prohibits as in¬ jurious to the community; others it strictly limits, others it taxes, others it freely permits. All is conventional and by virtue of law, not by natural right. 2. If exchanges between fellow citizens are conditional and sub¬ ject to law, it will hardly be contended that those between citizens of different nations are less so. Right of property being limited, and subject to the lien of the State, the exchange or sale of that property to foreigners may be absolutely prohibited by the State, and this has in fact frequently been done. Many States forbid the holding of real estate by foreigners, and many have at one time or another prohibited the export of certain sorts of personal property, such as coin or labor-saving machinery. Thus England formerly prohibited the exportation of sheep, under penalty for the first offence, by the Statute of 8th Elizabeth, C. 3, of forfeiture of goods, imprisonment, and cutting off the offender’s left hand. France has so lately as March, 1875, prohibited the export of horses, because Germany wishes to buy and would pay satisfactory prices to French owners. Many other States impose an export 11 duty on certain sorts of property: e. g., Brazil levies sucli a duty on coffee, and Spain on sugar and cigars. These are cases of preventing or burdening the sale of property to foreigners. Familiar instances of limiting the power of acquiring property from foreigners are afforded not only by the general prac¬ tice of imposing import duties, but by actual prohibition when public policy seems to require it, as in the recent instance of Ger¬ many prohibiting importations of American potatoes, the object being to prevent if possible the introduction of the potato bug. France, Spain, Russia and other European countries have also prohibited the importation of American potatoes. The English tariff laws abounded until recently in prohibitions upon the importation of such manufactured articles as were thought capable of interfering with her domestic industries. The existing French tariff, which is in many respects properly considered a model law, prohibits the importation of white sugar from foreign countries, tobacco for private account, both cast and wrought iron except specified sorts, fine glass and pottery, and numerous other articles, including all unenumerated chemical pro¬ ducts.* However abstractly desirable it may seem to some minds that international exchanges of property should be unrestricted, such exchanges can surely not be claimed as an inherent right or as established by custom. 3. “ Every individual will be richer and happier, when each por¬ tion of the globe devotes itself to the creation of those products *Those who believe the invectives which represent our tariff as unequaled in its enormity may be instructed by the following incident: Late in the year 1873, I sent to Paris a small invoice of Nickel-Ammonia Sulphate. Shortly after I heard that my customer had died, that the goods had been seized by the French Govern¬ ment for violation of the Customs laws, and that a fine of 600 francs was levied upon the con¬ signee, simply because that substance was not named in the French law; it was therefore not only prohibited but was confiscated. My application to be allowed to take back the goods was refused except on condition of first paying a duty of 36 per cent. Finally, as a favor, the goods were surrendered to mo for sale in France on my paying, in addition to 36 per cent duty, a fine of 406 francs. France thus prohibits the entry of goods, no matter how innocent and useful, which her laws do not explicitly name as admissible, and punishes by confiscation the shipper and by fine the receiver of such goods. 12 for which it has the greatest natural facilities.'*’* What the capa¬ cities of any country are is nowhere fully known, since all are in transition—some developing and advancing, some positively or relatively retrograding. One of the most important factors in the capabilities of a coun¬ try, and one which some minds appear unable to appreciate, is the character of its inhabitants. While they remain spirited and in¬ telligent their country does not reach its limit of achievement, or become doomed to industrial and financial subjugation. They refuse to accept their country’s present condition as a finality, but holding fast to that which is good they move onward. Because France was once dependent upon the tropics for sugar, should she have accepted, as one of the ultimate facts, that nature had imposed upon her this dependence by inakingher soil and climate what they are, or did her ingenious people act wisely by finding a way through toil and self-denial to a splendid independence of sources controlled at the time by her antagonist England ? Because America once produced no cotton, should she have rested content never to produce it, but have gone on winning a few muslins indi¬ rectly and at great cost through the export of wheat and tobacco to England ? Because Bessemer steel was first made successfully in Europe, and the difficulties of producing it in the United States were great, should this country, though urgently needing steel rails, have refrained from attempting to make them, and Illinois have gone on paying to England 300 bushels of wheat for a ton of them, which she can now buy within her own borders for 100 bushels? It is curious to note that the philosophers who pretend to em¬ brace the world in their far-seeing theories can never extend their vision beyond the price-current of to-day. A small, weak or timid nation yields to foreigners in such matters and patiently buys from them at high prices such meagre supplies as it can afford. A great nation aiming to be self-centred and independent carefully examines its own resources and develops them through struggle and sacrifice if necessary, undeterred by the obstacles raised by those foreigners whose profits are threatened. Wayland, p 91. 13 The claim by another country of possessing superior fitness to conduct a lucrative business is no doubt a legitimate trade device to suppress rivalry, though a shallow one: my own experience, offered here diffidently in preference to that of others taken at second hand, affords several instances of its unsoundness. Fifteen years ago, when I was undertaking to introduce the manufacture of spelter or metallic zinc, a French chemist kindly explained to me the impossibility of extracting zinc from the ore I had to deal with (the silicate) ; the New York agent of the largest foreign producer set before me in a very courteous visit the great probability of my failure; even the American consumers were so persuaded thereof that they opposed the import duty, equal to the average of that on other imported goods, which seemed necessary to enable the new industry to survive.* When, twelve years ago, I undertook to establish here the manu¬ facture of nickel, similar predictions of loss were made from similar quarters and similar objections to import duty urged. One of my foreign rivals said to me, “You will sink a hundred thousand dollars and then you will give it up and sell us your matte” (concentrated ore.) If I had been unable or unwilling to sink more than a single hundred thousand he would have been quite right.| These two enterprises, as useful to the country as the capture of two frigates in time of war, both succeeded, and the industries are thoroughly naturalized. In each case the protection of an average rate of import duty was denied, or delayed for years and until the battle was already won; but, for lack of that protection, won at a sacrifice of wearisome toil and of capital which it is not reasonable * See American Journal of Science and Art, 1871, cii. p. 168. -f- It is a curious incident that Germany, which gives its name to the principal alloy of nickel, and whose miners and chemists first discovered jpd investigated it, is now paying for nickel to make its coins nearly doable the price paid by the United States for its coin nickel, which was mainly purchased during the period when my establishment was fighting with foreigners for its life, and when free traders in Congress were fond of asserting or insinuating that the Mint was being bled for the benefit of a Pennsylvanian. The very important German-silver in¬ dustry of this country, which was at first almost hostile, would for several years past have been unable to procure an adequate supply of nickel but for the existence of my works, which have during that time supplied our German-silver manufactories at as low an average price as has been paid by their rivals in England or on the Continent. 14 for a nation to exact as a condition of bringing into it needful \ industries. When, eight years ago, an iron company in which I am a director thought of making Bessemer steel, we were deterred by the asser¬ tion of English experts that ores containing as much as .03 per cent, of phosphorus were unfit for that manufacture. Ores containing less phosphorus were not cheaply obtainable here, and we hesitated, but the average of nine analyses of highly approved English Besse¬ mer rails, costing about $120 gold per ton, laid down in a railroad in front of our works, showed us nearly double that percentage of phosphorus, and we have since found English steel rails containing as much as .115 per cent. We determined to make our own ex¬ perience, and are now selling steel rails better than the English at about $65, gold, per ton, though indeed without profit. These instances could be corroborated by many others, illustrat¬ ing how grossly short-sighted would be the national policy that would discourage a desirable industry, because it seemed at the moment difficult or pecuniarily unpromising of immediate gain.* Given the natural resources or conditions (and if not apparent they must be sought), the absolute condition of national prosperity is that the nation shall conquer as rapidly as possible from nature and from man whatever is needful to fortify and perfect itself. Its citizens are to remember that if one of these necessary achieve¬ ments seems difficult or even nearly impossible, the highest func¬ tion of man is to render nature subservient to his will. The man who does not in some line of action accomplish something that without him seemed impossible, though of course counted in the census, is otherwise not indispensable. But the nation dependent upon others is never certain of being able to satisfy its wants, for it cannot always, even by the power of money, control the action of those nations from whom its supplies are drawn. England was grievously tried when its cotton receipts were di¬ minished during our civil war, and it finds even yet no escape from the false position of having engaged so large a fraction of its popu- * Sec Bcntliam’s letter to Adam Smith on Projects in Arts for a defonso of Projectors. 15 lation in the business of cotton manufacture, which is so greatly at the mercy of foreign accident or policy. At this moment the United States are in the precarious position of requiring from abroad $92,000,000 worth annually of sugar and molasses, all of which might be produced at home with the greatest advantage to our agriculture as well as to our balance of trade. To naturalize the beet sugar culture seems indeed to be the most important achievement now demanded of us. Turning from the consideration of those first products which are sometimes called raw materials to that of manufactured goods, it is first to be observed that each live population has its own tastes and requirements, which are sure to be better satisfied by its own manufacturers than by foreigners who cannot so accurately or promptly know what is wanted. When a nation sinks to accepting its tastes from abroad, of course the dictator of taste can probably best supply what is needed to gratify it, and can to a great extent be the dictator of price also. This is one great source of France’s constant prosperity, for Colbert truly said that the fashions of France were worth to her as much as were the mines of Peru to Spain. The combats between the industries of different countries which are approved by philanthropic Free Traders as the appointed means for determining the survival of the fittest are often of the most dreadful character. The undefended artisans of India or of Turkey engaged in a hopeless contest with the hurrying machinery and the mercantile facilities of England were simply doomed to extermination ; driven from their own occupation and unable to find another, they perished by myriads as certainly as would a naked horde under the artillery of a modern fort. The cunning brain and the nimble dexterous fingers, which produced for many ages fabrics superior to any known elsewhere, went down in bitter defeat and ruin before the industrial weapons of Europe. Legislative interference to defend them while learning the new arts might have saved their lives, and have saved to their countries the treasure which England henceforth drains away for her cheaper (if also inferior) goods, but such interference English policy was able to prevent; her trade philanthropy rules, and “order reigns in Warsaw.” 16 But in these wars of conquest which England constantly wages, her own combatants also suffer, for the condition of her success is that her goods shall be cheapest, and when her antagonist has resources and courage her industrial armies are made to endure the extreme of toil and penury. Particularly when assailing the fortress of a protected or partially protected country like the United States must the assaulting army suffer, even though skillfully guided to attack the weakest points at the most favorable and unguarded moments. My readers are probably too familiar with the pictures, of English pauperism, and of the misery which struggles to escape that Malebolge, to require a rehearsal of them here, but they may profitably remember that it is for declining to compete openly with her in experimenting how far the laboring classes may be degraded without extinction that philanthropic England up¬ braids us. The desperate strikes, and the trades-unions, of England are but the inevitable mutiny of human nature against insufferable oppres¬ sion. That those methods of warfare against employers should have spread to this country is an instance of the propagation of evil like the spread of disease from a foul neighborhood to a cleanly one. Again, the effort to make goods cheap—to undersell at all events— has been the fruitful source of degradation in quality, of dishonest work, and of commercial swindling. “Cheap and nasty” is an En¬ glish phrase; “shoddy” is an Euglish term, for England invented the tearing up of old rags to spin and weave into shoddy cloth ; railroad iron made of mill cinder is an English production; and, in short, the old English pride in solid good quality is in danger of disappearing from all branches of their industry.* *Carlyle says, writing to Sir J. Whitworth, in January, 1874, concerning the latter’s inten¬ tion to pay to his work people a bonus in addition to wages : “ A sadder object than either that of the coal strike or any conceivable strike is the fact that, loosely speaking, all England has decided that the profitablest way is to do its work ill, slimly, swiftly and mendaciously. What a contrast between now and, say only a hundred years ago! At that latter date, or still more conspicuously for ages before that, all England awoke to its work with an invocation to the Eternal Maker to bless them in their day’s labor, and to help them to do it well Now all England, shopkeepers, workmen, all manner of competing laborers, awaken, as if with an unspoken but heartfelt prayer to Beelzebub—Ob, help us, thou great lord 17 Supposing, however, the war to have been fought out, and the industries to have been at last apportioned among the nations, each nation having been defeated upon certain points and having retained certain others—this one not allowed to make clothing from its own cotton or wool, and that one not permitted to make railroads or ships from its own ores and forests—would the pros¬ perity and happiness of all be promoted? Would a saving of human labor result? Answer 1. The conquering country in these contests conquers not merely on one point, but on most or all, and takes for itself the most profitable industries, leaving only the ruder and less remunerative to the defeated, whose prosperity and aspi¬ rations for development naturally perish or are postponed. One overfed and many needy do not constitute a happy world. Answer 2. Instead of saving human labor, a vast expenditure of quite unnecessary effort would be required to carry back and forward the materials and products; as when America sends cotton and corn to England, taking back in payment a fraction of the product as cotton cloth, or when Australia sends thither wool, taking in payment a fraction in woolen cloth. 4. “Every means should be taken to circulate Free-Trade publi¬ cations and promote Free-Trade measures in other countries.”* Each nation and people has its own prosperity to look after, and has very little occasion or right to meddle in the affairs of others who know better what they want. To a Manchester philanthropist, with his moral pocket-handkerchiefs and his relentless extermina¬ tion of the simple habits and industries of weaker people—nay con¬ sequently of the people themselves—this may be heretical doctrine. We will look, however, at the practical working of English inter¬ ference to promote free commercial intercourse in a few of its most of shoddy, adulteration and malfeasance, to do our work with a maximum of slimness, swiftness, profit and mendacity, for the Devil’s sake, amen!” An American merchant, writing June 1, 1875, from Manchester, England, to the New York / Evening Post, says concerning the exportation of cotton drills to India and China: “ Favorite / American stamps and brands have often been affixed to English goods, with the intention of | deceiving the buyer in Bombay, Calcutta, or Shanghai. “ But besides the brands having been dishonestly copied, these goods have been dishonestly j made! Little by little the quantity of sizing used has been increased, until the proportion has i become no less than 30, 35 and even more than 40 per cent, of the weight of the piece,” * Right Hon. W. E. Baxter at the last Cobden Club dinner. 2 18 conspicuous instances, and here, instead of affecting original research, I shall simply extract from the most recent repository of facts, viz., Prof. R. E. Thompson’s “Social Science and National Economy:’’ India. —By 1833 not a single piece of cloth was exported from India, and for the ruin inflicted on its artisans Lord William Bentinck, the Governor General, could find “no parallel in the annals of commerce-” English writers tell of “ the enormous and undeniable falling off in the commercial activity of India; the decay of those flourishing marts with which the whole coast was once studded; . . . the contraction, and in great measure the ruin of trade; the neglect of public works; the depreciation of agricultural pro¬ duce;” which last “is observed to be a marked feature of our rule. . . • The numerous local markets created by the existence of the native princes,” and by the wide existence of a class that had other means of subsistence than farming, “ and which, by serving as centres of money circulation, enhanced the value of produce on the spot, disappeared.” “ The trade of India is so trifling, as compared with its agriculture, that the trading classes, except the village bankers” or usurers, “form a very small item” (J. M. Ludlow). In fine, there is nothing left in India save an impoverished agriculture and a lifeless trade. The Hindoo cotton-grower produces the raw material to clothe his countrymen ; but it reaches them by way of Calcutta and Man¬ chester ; the skill of his wonderful manufactures is being lost. (P. 323; see also pp. 321 to 329-) Two European countries enjoy the unhappy distinction of illustrating the miseries inflicted upon nations industrially weaker when they engage in free competition with those that are stronger. (P. 346.) Portugal. —In 1703, after the death of Ericeira, Portugal negotiated the Methuen Treaty with England, by which Portuguese wines were admitted into England at lower rates than those of France, and English goods into Portugal at the old rates of duty. The aristocracy, who were large wine¬ growers, were chiefly interested in the new arrangement. “ Their own fab¬ rics,” says the British Merchantman, “were perfectly ruined, and we exported £100,000 value in the single article of cloths the very year after the treaty. The Court was pestered with remonstrances from their manufacturers; . . . . but the thing was passed, the treaty was ratified, and all their looms were ruined.” One of the first effects was such a drain of silver from Portugal that “ there was left very little for their necessary occasions,” and this was fol¬ lowed by a drain of gold. Exchange stood at fifteen per cent, against Portu¬ gal, and her export of coin to England rose to £1,500,000 a year. Goods were not paid for in goods, as Free Traders allege. Her people were reduced to the monotony of a single occupation; the amount of their productive labor was vastly diminished; their power of asso¬ ciation and mutual helpfulness was destroyed. (P. 346.) 19 Nor has England gained as much as Portugal has lost; the country is too poor to be a good customer. The Portuguese demand for English goods is now of no importance, and has no effect on the English market. The country is a sucked orange, a thing to be got rid of—“ a burden and a curse to Eng¬ land,” Mr. Cobden says. (P.348.) Turkey. —Turkey, Mr. Cobden thinks, is also “ a burden and a curse ” to the commercially powerful nation with which she has long enjoyed free trade. Turkey was once a burden to nobody; was one of the chief commercial na¬ tions of the world. “Greece and Asia Minor furnished us with their manu¬ factured products, together with those of India, long after their conquest by the Turks, and up to the period when the industry of Europe reached its de¬ velopment. To-day their manufactures have all but disappeared, and those unhappy countries have nothing but farm products.” (Constant.) P. 348. “Trade degenerated into pedlary, enterprise into swindling, banking into usury, policy into intrigue, lands untilled, forests wasted, mineral treasures unexplored, roads, harbors, bridges, every class of public works utterly ne¬ glected and falling into ruin, pastoral life with nothing of the Abel about it, agriculture that Cain himself and metallurgy that his workman-son might have been ashamed of; in public life, universal venality and corruption; in social life, ignorance and bigotry; and in private life, immorality of every kind; not ‘something’ but everything 'rotten in the State of’ Turkey. Such is the picture” drawn by Dr. Lennep. (P. 350. See pp. 348 to 353.) The majority of modern wars have been undertaken, not for national honor or pride, but for the sake of trade,—“ the fair, white-winged peace-maker.” The communities most at war with the rest of the world have generally been those in which the spirit of trade predominated—Tyre, Carthage, Venice, England, &c. A great English military historian and general, Sir W. Na¬ pier, lays it down as a rule that the traders have begun the wars and the soldiers have ended them.—P. 240. The utter indifference of the trade spirit to others’ misery is well exemplified by the forcing of opium into China, even by war, despite the efforts of the Chinese government to save its people from that poison. Only a hundred years have elapsed since the East India Company first introduced opium into China, and now the vice of opium-smoking pervades all classes, producing untold physical distress and a demoralization which saps the national life. With such results before us, “ the interference theory of govern¬ ment,” by which I mean the interference of trade propagandists of one nation in the commercial policy of other nations, can hardly be defended, and they surely afford no indication of the near ap¬ proach of that millennium promised by the Free Traders as the 20 consequence of their doctrines. Instead of the greatest happiness of the greatest number, Free Trade produces but too certainly the ruin of multitudes for the gain of a few—those few happening to be the Manchester prophets of the universal brotherhood of man. 5. The chief part of the revenue collected for import duties comes from the pockets of foreigners and not from citizens. To that ex¬ tent it is a clear gain to the nation collecting it, as if it were fished out of the sea at merely the cost of collection. Indeed it is more than this, for, while the rival is thus forced to pay tribute, he is at the same time deterred from throwing in so great a quantity of his goods, disturbing home labor and drawing away so much money as he otherwise would. The collateral convenience, that no individual is obliged to pay the impost who chooses to abstain from using the goods, belongs equally to that class of internal revenue known as excise, and need not be dwelt upon here. To the extent that import duty is paid by citizens it closely resembles excise. This branch of the subject, though much insisted on by some writers, seems to call for no further consideration, since it is obvious enough that, if the foreigner pays the duty by receiving for his goods after payment of duty no more than he would have got if no duty were exacted, he contributes the whole amount of the duty to support his customer’s government, and a more satisfactory way of replenishing the Treasury could hardly be imagined. 6, 7 and 8. Who pays the duty? Dr. Wayland says: (Political Economy, p. 392,) “ A tax, or as it is called a duty, is laid by this country on various goods imported from abroad immediately on their arrival. This duty is paid by the merchant who receives them ; and he adds this duty to the cost of the goods when he sells them to the next purchaser. Thus the price of the product is raised, by this amount, when it comes into the hands of the consumer. If broadcloth pay a duty of two dollars a yard, he who buys a yard of broadcloth pays two dollars a yard more for it than he would pay if there were no duty to be paid. If coal be taxed two dollars a ton, as it is at present, every consumer of foreign coal pays two dollars a ton more than he would pay if no such tax were exacted. 21 The effect of this tax is also to keep the price of all other coal two dollars a ton higher than it would otherwise be.” X being the value of a certain quantity of foreign goods in New York free of duty, and the duty being 50 per cent, ad valorem, then to find the selling price of the goods, x+%=l ix; but y repre¬ sents a similar quantity and quality of domestic goods, then to find the selling price of those goods, as y=x, y-\-^=llx. This charming little equation would be quite free from blemish if men would only consent to be as fixed and rigid as x and y. But they are operated on by factors unknown to algebra, and shift about under change of circumstance with a freedom and an elas¬ ticity that are bewildering to the pedagogical mind. Much of the practical gist of the whole question lies, however, just here, for though it is undoubtedly true that the government may for public benefit bestow upon one class of men the money drawn by direct taxation from another class, or from all, as in the familiar case of maintaining armies and civil officers ; and though some of the tasks demanded for the more perfect security or development of the State may be so difficult and unremunerative that bounties may be offered with perfect propriety to those citizens who although not in the employment of the State will undertake them, as in the case of rewards for killing dangerous animals; and though even J. Stuart Mill says, concerning the introduction of new manufac¬ tures, “a protective duty, continued a reasonable time, will some¬ times be the least inconvenient mode in which a country can tax itself for the support of an experiment;” and though it is also true that, when import duties are levied upon foreign goods, every citi¬ zen is free to engage in the production at home of similar goods, thus passing at pleasure out of the class whose property is con¬ fiscated into the class receiving the benefit of the confiscation, and many are sure to do so if more than the average reward for labor is probable, yet the natural feeling of scrutinizing uneasiness under taxation cannot fail to be aroused if a citizen find himself obliged to pay permanently to his neighbor a higher price than the same commodity could be got for from the foreigner. “ The duty collected on imported goods,” says the Free Trader, “ is added to the price which the consumer would otherwise pay for 22 those goods. Also all domestic goods of similar nature are to the same extent charged dearer to the consumer. The nation pays to the producers of those domestic goods a bounty equal to the rate of import duty reckoned upon the entire mass of the do¬ mestic goods.” Mr. Burchard of Illinois, working upon these axioms, figures up a list of articles with the bounty paid to each person engaged in producing them, from which I extract.* Articles. Cotton goods, Silk “ . Woolen “ . Value of domestic Duty, production, 1870 per cent. . $165,000,000 40 . 30 000,000 60 . 176,000,000 69 Increased cost. $51,241,000 11,250,000 50,286,000 Persons Ann. bounty employed, per capita. 171,000 $300 16,000 703 120,000 419 If the absurdity of this position is not apparent upon the mere inspection of it in this form, it will become apparent when other articles are inserted in place of those selected by Mr. Burchard, viz.: Articles. Domestic production Duty. Increased cost. Persons employed. Ann. bounty per capita. Crude petroleum, 1 gallons, . . . J 181,263,505 per gall. $36,252,701 4,487 $8,079 Oats, bushels, . . 282,107,157 p“bu, 28 2l °. 715 150,000f 188 Potatoes, bushels . 143,337,473 p»bt. 21 ’ 500620 150,000f 143 No idiot has ever imagined that these duties produce the slight¬ est effect upon the market prices of our enormous products of these articles. Crude petroleum, for instance, frequently sells at 3 cents to 5 cents per gallon, yet Wayland, trained to know that the greater contains the less, here makes the less contain the greater, for by his rule that price of 3 to 5 cents must somehow include the 20 cents per gallon import duty. Oats and potatoes come to us from Canada, but her people know perfectly well that the whole of the duty upon these articles, as upon all of her products sent to this country for sale, comes out of their pockets, and they want a reciprocity treaty to relieve them of that contribution to our treasury. * The data and calculations are Mr. Burchard’s—not mine. t As about 6,000,000 persons are reported by the census of 1870 to be engaged in farming, it maybe nearly fair to estimate one-twentieth as engaged in raising oats and potatoes—or say the full time of 150,000 persons at each crop. 23 But take merchandise of another class—say Bessemer steel rails, as they have been particularly discussed in this regard. Mr. Marshall, of Illinois, in his speech of June 6, 1870, upon the then pending tariff bill, says, “ But the great outrage of this bill is in the proposed duty on steel rails.” After rehearsing the great advantages of steel rails over iron in safety and durability, he proceeds: “Legislation interposes to deprive us of these bene¬ fits.If Government would withhold its interference, and the laws of trade were left free to operate, we would have this fine Bessemer steel rail for all our new roads.The present duty on steel rails is 45 per cent, ad valorem.The bill before us, instead of reducing or abolishing this duty, actually proposes to increase it to $33.60 in gold per ton, increasing the cost thereof of course to that amount.a robbery, Mr. Speaker, of such gigantic propor¬ tions that it is amazing that any one would dare to champion it.” Mr. Marshall I believe to be an honest man, but he quotes Mr. Wells in this speech, and had apparently been misguided. Against his invective I will set an extract from the Report of the Secretary of the Iron and Steel Association for 1871. He speaks of the huge profits derived by English railroad-iron makers from increased prices charged to our railroads, after breaking down our rolling mills by forcing down the market in periods of low tariff, and con¬ tinues (pp. 9 and 10): “ A more recent illustration of the principle in question is found in the his¬ tory of the production and prices of steel rails. In 1864, just before the com¬ pletion of the first Bessemer steel works in this country, the price of English steel rails in New York and Philadelphia was $162 in gold. In 1865 two works were in operation here, and foreign rails were lowered to $120. Two years later, in 1867, a third works started, and two or three new companies were organized to further extend the manufacture, and foreign rails fell to $110, gold, per ton. In 1869 the capacity of our works was equal to the American demand, nearly $5,000,000 had been invested in the business, and foreign rails were put down to $80, gold, per ton. At that price they could not be made here, and the business was threatened with destruction. Ninety- five intelligent consumers of steel rails, alarmed at the prospect of being placed at the mercy of foreign makers, appealed to Congress to save our man¬ ufacturers by increasing the duty on imported rails. This was done, our works responded with renewed vigor to the increasing home demand, the price rose to a point at which a moderate profit could be made (about $105 per ton), 24 and has since fluctuated but little. There can scarcely he a doubt that, had Congress not acted promptly in the premises, our works would have been closed, the capital invested in them sunk, their skilled labor driven into some other occupation, and the business so disorganized that, before resumption of operations could have taken place, American consumers would have suffered as severely as in the two instances previously given.” To this I need only add that maintenance of the duty at li cts. per lb. caused still other Bessemer works to be erected in this country, including two in Mr. Marshall’s own State of Illinois, and all the blessings of abundant and cheap steel rails which he wrongly imagined were to come through Free Trade have come from the opposite policy of Protection, for the best steel rails are now selling at $75 currency, or about $65 gold per ton, a lower price than that of iron rails two years ago, but little higher than steel rails could be landed here now from England duty free, and doubtless $25 per ton lower than they could be had duty free if our works had not by Protection been called into existence. It cannot be doubted that the foreigner pays the duty in this case and in all similar cases. The writer of “ What to do with the Surplus ” in the Atlantic for January, 1870, wished to abolish the duty on pig iron because it was a tax “ to secure higher profits to the manufacturers by re¬ stricting the amount available for consumption within the country to the capacity of the Pennsylvanian and a few other scattered fur¬ naces,” and because it prevented this country from building iron bridges and iron ships. He spoke too soon; henceforth he should prophesy only after the fact. Encouraged by the duty, ironmasters improved their furnaces and built others in not one but a dozen States, in consequence of which there is now a surplus production, and pig iron is cheap enough to please the most fastidious, and to make us expect that other wail of the “still vex’t” Free Traders: “You have diverted the industry of the country from its proper channels into some¬ thing unremunerative.” In such alternations of distress do the American Free Trade apostles pass their querulous lives. Like the chorus of a Greek tragedy, on the stage but taking no 25 part in the action, they observe the struggle of their countrymen for independence in some needful industry, and they sing “ Oh! Impious, to scale the heavens ye essay ! Great Cheap-John ye defy!” But when success crowns the arduous strife, and the prize is won, the chorus strikes in with : “ Misguided men I Potatoes, and much hay these efforts might have yielded.” If there be something feeble in this anti-climax, the apostles do not seem to perceive it. Iron bridges are now made in this country so cheaply as well as abundantly, that our builders take contracts for erecting them in Canada, and iron shipbuilding has become in Pennsylvania an es¬ tablished industry, producing vessels, superior according to the highest European authority to the best English vessels, and which compete successfully under our own flag with the most firmly es¬ tablished English lines. Sydney Smith once said that he would go out of his way at any time to kick a sheep, and our Free Traders have so long and safely followed his noble example in their treatment of laborious, patient, steadfast Pennsylvania—the backbone of the nation—that any¬ thing like a defense of its iron producers seems to them presump¬ tuous. But how puerile is the clamor against “pig iron monopo¬ lists” by men who are perfectly welcome to engage in the pig iron business if they have the needful capital and pluck? The beet sugar manufacture of France is another most conspic¬ uous instance of the cheapening of a product at home by import duties upon its foreign rival, but the story is so hackneyed that I hesitate to repeat it here. It is, in fact, less an illustration of the question of “who pays the duty,” than an example of the legitimate final result of a steady protective policy, viz: complete independence of foreigners for an article of prime necessity, the entire cost of which is saved to the nation, and profitable employ¬ ment of the most permanent kind given to a large fraction of the people in thus supplying their own want. In brief, foreign sugars were from 1816 to 1883 subjected to duties of 5 to 8 cts. per lb., from 1833 to 1840 to duties of 2\ to 5f cts. per lb., and from 1840 to 1860 to duties of 1 to S J 2 cts. per lb. In April, 1866, the 26 price of beet sugar in France was 4f cts. per lb., though from being protected it had passed into the condition of being heavily taxed, and of being, in fact, one of the principal sources of internal reve¬ nue.* An excess over home consumption being now produced in France, Belgium and Holland, those countries now pay export bounties upon it, and it is exported in great quantities to England, competing there with tropical sugar so vigorously as to cause most serious alarm to the English refiners of colonial sugars, a deputa¬ tion of whom lately declared in an interview with Lord Derby that the “enormous increase” in the sugar-producing power of France “would, if it continued, swamp the West Indies.” The real effect of import duty on prices is about this: In the case of articles produced only abroad, the duty is usually but not always added to the price, for, when there is no supply except through the custom house, either the duty must be paid, or the article be dispensed with. Now the fear of this latter event often causes the foreigner to pay the whole or a part of the duty by abating his price. For instance, while coffee was subject to import duty here, the price in Brazil was decidedly lower than when that duty was abol¬ ished, the Brazilians having apparently preferred to abate their price rather than have their market curtailed by a higher price here. In 1870, when our import duty upon coffee was 5 cents per lb., the price of coffee at Rio was 9 cents per lb., and our importa¬ tions from Brazil only were 224,235,000 lbs.; in 1874, our import duty having been meantime abolished, the price at Rio was 20 cents per lb., and our importations were 199,073,280 lbs.f In the case of articles produced both at home and abroad, home competition, which is at first made possible by the duty preventing foreigners from crushing it in the bud through temporary lowering of prices,J or even by its causing an absolutely higher price, soon forces the foreigner to abate his price or totally lose his market. Later, it constantly obliges the foreigner to accept not what he * See E. B. Grant on Beet Sugar. fThe following table exhibits the annual imports of coffee and tea from 1871 to 1874, inclu¬ sive, with the total value thereof, and the average price per pound in the countries of their production: 27 would wish to charge, but what the home producer is willing or able to sell at. Finally, in many cases, after quite driving the for¬ eigner out of the field, domestic establishments competing among themselves force prices down to a lower point than foreigners could deliver at free of duty, even though they too have meantime im¬ proved and cheapened their processes. This result has almost been attained, as has been said, in the case of Bessemer steel rails, and has been fully attained in the case of divers other articles. Why then in such cases do American producers desire the reten¬ tion of the duty? I might say for the same reason that makes a man prefer to keep his house roof sound even in fair weather, but will rather say : First. In order that they may not in times of storm see their pros¬ perity destroyed by vicissitudes growing out of the policy or acci¬ dents of other nations—as little would the public interest brook their being so destroyed. Second. In order that, having assurance of a certain measure of defense from foreign assaults, they may confidently enlarge their Statement of imports of Tea and Coffee during the four fiscal years (ended June 30,) 1871 to 1874, inclusive. Fiscal Tears ended June 30. Coffee. Average cost Tea. Average cost Pounds. Aggregate of shipment per pound of shipment. Pounds j Aggregate cost at place of shipment. per pound at place of shipment. 1871. 317,992,048 $30,992,869 9.74 cents. 51,364,919 1 $17,254,617 33.60 cents. 1872. 298,805,946 37,942,225 12.69 “ 63,811,003 1 22,943,575 36 00 “ 1873. 293,297,271 44,109,671 15.00 “ 64,815,136 24,466,170 37.74 “ 1874. 285,171,512 55,048,967 19.34 “ 55,811,605 21,112,234 37.82 “ This record of foreign prices for coffee tends strongly to the conclusion, making dne allowance for the effect of short crops on prices, that the duty repealed hy the act of 1872 was added to the selling price abroad, with no advantage to consumers here, while the country, as a whole, has paid more than before for the entire stock. The repeal of the duty on tea caused little or no reduction of prices to consumers here, but an increase of prices abroad. Report of the Secretary of the Treasury for 1874. Jin a preamble and joint resolution relative to the plate glass industry of New Albany, Indiana, which was passed by the Legislature of Indiana, February 23, 1875, occurs the follow¬ ing:—“And whereas, the foreign manufacturers of polished plate glass have united, and pub¬ licly say:— We have had a long and profitable trade in America; we can afford, and will sell polished plate glass for years at a loss rather than yield this trade to American manufacturers .” 28 operations and by means of those larger operations derive adequate profits even at lower prices. It is notorious that most of the gains of successful manufacturers go into extensions and improvements of their mills and factories, by which they afterwards serve the public cheaper. My limits forbid the further prosecution of this interesting branch of the subject. It has been treated at some length by John L. Hayes, in his “ Protection a Boon to Consumers,” but it should be taken up afresh, and elaborated by the light of recent facts. 9. A purely agricultural nation can hardly exist at the present day, and those nations which most nearly approach that character are the most miserable. Our own Southern States were held as nearly as possible in this condition under the slave regime, and fell so far behind the current of the age that many years must pass before they can come up to the front. Of the plight of Turkey and India, after the extinction of their manufactures, enough has been said, and we all know the story of Ireland’s wretchedness since the deliberate destruction by England of her manufactures:* let us rather look at Egypt, that ancient granary of the world, and at present almost a purely agricultural country. How she fares in this modern era of commercial and industrial strife is well shown in the following abstracts from a valuable paper by Alex. Delmar, communicated to the American Philosophical Society, Oct. 2, 1874. The dominion of man over nature is so feeble in that country, that im¬ mense tracts of once fertile land are now abandoned for want of power to command the needful means to hold them in cultivation. “One-half the Delta is said to be uncultivated.” “Part of the lower territory, now being reclaimed by the Suez Canal Company, was known in ancient times as the fruitful land of Goshen.” Though the area of Egypt is nearly 593 million acres, and its population but 8,442,000, the cultivated land is but ^ of an acre per capita, which is but one-half the ratio in Great Britain, one-fourth that of France, and one-twelfth that of the United States. The misery of the inhabitants may be partly inferred from this, when it is further remembered that the product per acre is less in Egypt than in the other countries named, and that of the product a much smaller proportion is consumed by its cultivators. So little are the field laborers able to defend For Ireland see Thompson, pp. 309 to 321. 29 themselves, and so fixed is the Khedive’s fondness for foreign trade, that they are obliged to cultivate such crops as he considers best for export, looking to his own interest as chief land owner and tax recipient. ^ Wages in 1873 were for: Field laborers, ....... per diem, 7 to 15 cts. Unskilled laborers in salt works or factories, . “ 15 to 40 cts. Mechanics, viz.: masons, carpenters, blacksmiths, &c., 60 to 100 cts. While in the United States 15 persons out of 100 produce abundant food for all, in Egypt at least three times as many are needed to produce a vastly inferior supply. The peasant has usually nothing but dates and dourra for food. His “home is far less comfortable than that of some wild animals—for instance the beaver. It is of the same character as the latter—a mud hut—and teems with vermin. Great numbers of the people live in the ancient tombs, with darkness and the bats. The dress of the people (about the frontier between Egypt proper and Nubia) consists of a piece of leather about six inches wide cut in strings and tied about their loins.” “The rate of interest ranges between 10 per cent, on the most desirable Government securities to 60 and even 100 per cent, on fair commercial risks.” When the peasantry get any coin they usually bury it. The most antiquated tools are used; the crops, in spite of the Nile mud, are but meagre—wheat for instance 11J bushels per acre, and other things in proportion. The total export of wheat has seldom been as much as 5,000,000 bushels in a year, mainly of course to England. Yet the population has great natural aptitude. The young Arabs are of quick intellect and easily learn. “They show considerable dexterity.” “The young Egyptians show great skill and often surpass their masters in cleverness.” This doleful picture is of a country once the proudest of the world, and of a people whose ancestors were conquerors of many nations, but they are destitute of the machinery of modern civiliza¬ tion and industrial warfare. The few factories in the land belong to the Khedive, and no opportunity exists for the people to attempt industrial advancement. The inhabitants of our prairie-land Egypt, more fertile than its prototype, and almost as destitute of manufactures, should ponder upon these results. They are, fortunately for themselves, politi¬ cally wedded to the manufacturers of New England and the Mid¬ dle States, who stand between them and England, and are bet¬ ter customers for their grain and better purveyors of wares and tex¬ tiles ; being so by virtue of that protective policy against which our 30 Egyptians chafe. Without such defense, how many generations would elapse before British philanthropists would take out of the land everything worth having? And how could the dwellers on those rich plains, unsupported by the metals, the manufactures and the arts of their compatriots, resist any form of subjection or indig¬ nity which foreigners might choose to impose upon them? That foreign traders should seek to seduce those regions from their fidelity may be comprehensible, but what shall we say of the domestic treason which tries to delude the Western farmers into believing that their real friend and ally is the English manu¬ facturer, and their real enemy the Massachusetts mill owner or the Pennsylvania ironmaster.* A vivid picture of the poverty of a purely agricultural commu¬ nity in a fertile land is given in the first chapters of Lamon’s Life of Lincoln, describing the parents and the early home of his sub¬ ject—the lack of comforts, the long rides to the inefficient mill, the general rudeness of the Pigeon Creek district of Indiana so recently as 1825. One of the neighbors narrating her recollec¬ tions says (p. 42), “I must tell you that the first treat I ever received in old Mr. Linkern’s house, that was our President’s father’s house, was a plate of potatoes, washed and pared very nicely, and handed round. It was something new to me, for I had never seen a raw potato eaten before.” It is everywhere the same where farming is the only business. Hog and hominy may be plenty,f but it is written that “ man * It is remarkable that while the Pennsylvania pig iron monopolist has always aided in the Westward and Southward march of the iron industry, rejoicing in the success of a varied indus¬ try in any part of our Country, the Free Trade teacher Wayland says, p. 92, “ Could not one of our old States supply one of the new States with manufactures cheaper than the new State could produce them itself?” Also that such Free Trade sentiment as exists in New England among practical men grows mainly from the belief that European competition will be less dangerous to New Englaud than that which Protection is developing in the South and West. fNot even food is always plenty in a country devoted exclusively to agriculture. Persia is such a country, yet has lately suffered the destruction of a large part of her population by famine. Last year a terrible famine was only averted in agricultural India by the efforts of England in sending great quantities of food to the threatened districts, in total disregard of the laws of “ unrestricted commercial intercourse.” The Levant Herald of Constantinople, de¬ scribing a famine which occurred last year in some of the most fertile Asiatic provinces of Tur¬ key, says that in July alone “ upon the most moderate estimate of deaths from actual starvation and the diseases resulting from insufficient food, they cannot fall short of 150,000 in number.” 31 shall not live by bread alone,” and the mere food producer, unaided by those who can satisfy his other cravings, sinks into meanness as well as penury. General Jackson, writing to Dr. Coleman, said: “Common sense points out at once the remedy. Draw from agriculture the superabundant labor and employ it in mechanism and manufactures, thereby creating a home market for your breadstuff’s, and distributing labor to a most profitable ac¬ count.” Having been myself a farm laborer for three years, and remem¬ bering well the long summer days, and the labor that goes to make a bushel of wheat, remembering also the feeling of mingled respect and envy with which I regarded the apparently easy lives and large profits of paper-mill owners and boiler-iron makers near by, I appreciate the farmer’s misgiving as to whether it is quite a fair deal between him and the manufacturer, but I know that succes¬ sive owners of those iron works have since then failed, and that only the best of the paper mills-succeeded, while the farmers have held on steadily, and the old names still hold the old places, better schools having been set up, more industries established, and the whole region advanced in comfort and prosperity. This advance of the arts and industries; the home market, the neighboring saw and grist mill, mechanics, teachers, implement factory and woolen mill, a varied industry and varied opportuni¬ ties, are the farmer’s needs. For them he could well afford, if need were, to pay temporarily higher for some few of his necessities, while his neighbors are learning to make them, especially as they, meantime, are paying him better for his crops; but shortly, as we have seen, his neighbors sell to him cheaper than the stranger, and if they seem to him prosperous beyond their share, they have shown to him or to his son the way to go and do likewise. The farmer, however, enjoys more perhaps of the paternal and protective care of his government ?han any other citizen of this country. Not only are all of his products which are liable to foreign competition in our markets directly protected by import duties, but vast sums have been paid by the government to protect The Irish famine, though less recent, is another instance. These things do countries of diversified industry. occur in the 32 from Indians the farmers of those Western States which have suc¬ cessively been upon the frontier, while by selling millions of acres of lands to settlers at a nominal price, government has actually bestowed upon farmers the chief part of the capital needed in their business. It is belittling as well as falsifying the question to insist that the farmer should mutiny against his neighbor and his government be¬ cause that neighbor aided by the government is supplying his wants at prices lower indeed than they were formerly supplied by the for¬ eigner, but at prices higher perhaps than the baffled foreigner now protests that he would supply them, if permitted. Without descend¬ ing to confute the Free Trader’s details as to the robbery inflicted on the farmers by the grasping manufacturers (that is by the domestic ones, for the gains of foreign manufacturers never hurt the feelings of your Free Trader), I will close this part of the argument by some quotations. Wavland says, p. 95 : “Let the productiveness of labor in any department be ever so great, where labor and capital are free, com¬ petition will always reduce profit in one department to the same average per cent, that it affords in other departments.” In the discussion, February 12, 1875, of the Tax and Tariff bill, then before the House of Representatives, Mr. Parker, of Missouri, said: “ I believe that the true solution of this question of getting the full value for the products of the farmer depends in the end .... in placing the farmer side by side with the consumer.” Mr. Dobbins, a practical farmer from New Jersey, said, in the same debate: “ I have been an observer, sir, as well as a practical man, and I have invariably found that, under a low tariff or the Free Trade system, the practical bearing of it was general devas¬ tation and want. The business interests of the country have generally suffered and suffered materially. And, sir, I believe that our interests are mutual; that when the great manufactur¬ ing interests of the country are prosperous, then all are pros¬ perous.” 10. When we remember that English Free Trade economists hold the normal rate of wages to be that which just suffices to prevent the extinction of the laborers, and that English employers have 33 usually followed with perfect obedience the rule of conduct thus laid down*—when we contrast the degraded working people and the.swarming paupers thence resulting, with the well-nourished, well-clad, well-housed and well-taught American working people, the hardihood of the Free Trade tenet now under review is most amazing. From the labor expended in the endeavor to prove it (labor which is apt to take the form of calculations as to the quan¬ tity of luxuries unused by laborers, such as wines, silks, and Brus¬ sels carpets, that could be procured here or in Europe by a month’s work), I suppose there must be some who are expected to credit this proposition, but if such intellects exist it were vain to argue with them, for “ gegen die Dummheit Icaempfen die Goetter selbst ver- gebens.” (Against stupidity even the gods contend in vain.) Let it suffice to point to the enormous and rarely checked emi¬ gration from Great Britain to this country, to the similar immigra¬ tion from Canada, to the huge deposits in our savings banks, and payments for life insurance, and to the streets of comfortable houses owned by working people in American manufacturing places. Supposing the ratio of inevitable outlay to possible earning to be as large here as in England, which is by no means the case, it is clear that the amounts of both being larger in the protected country, the absolute saving and consequent power of attaining competence must be greater here. 11. The revolt of our ancestors against Great Britain a century ago having been caused in part by their determination not to submit to Free Trade plunder and the suppression of their infant manufactures, and the policy of this country having been ever since protective of our manufacturers, the general result.of our hundred years of independence is fairly to be brought into court to testify whether degradation or advancement is the fruit of such a policy. Let those who prate of the prosperity arising from Free Trade produce a Free-Trade country showing attainments comparable to ours, or hold their peace for shame. That our progress might have been yet greater is most true, for * See Report of Abm. S. Hewitt, Commissioner to Paris Exhibition of 1867, on the Iron and Steel Industry. 3 / 34 our policy has vacillated in the degree of protection established at different periods, and in a similar degree has our growth been accelerated or retarded, as has been sufficiently demonstrated by Henry C. Carey. The depressed condition of many of our industries at this mo¬ ment under a sufficiently high tariff does not invalidate this argu¬ ment, since the depression is world-wide and is quite as marked in Free-Trade England as in Protected America, having in fact pro¬ duced more distress and bankruptcies there than here. A Free Trader, writing from Melbourne, Australia, says:—“I have only to add that at present our prosperity is something won¬ derful. We defy all economical laws by protective tariffs and inconsis¬ tent land legislation, and the revenue shows no sign of decrease.”* We have seen in the instances mentioned above, of Turkey, India and Portugal, what prosperity attends the practice of Free Trade. Lack of space forbids the introduction of further examples. It must not be understood that, because the rightfulness and expediency of National Self-Protection by means of import duties levied upon foreign goods are shown, everything that goes by the name of tariff must be defended. In nothing is it easier to show stupidity than in the framing of a tariff law, while to build up a judicious and harmonious one is a most difficult task, as Mr. Morrill or Mr. Dawes would probably be willing to testify. Having touched upon this subject in my essay on International Industrial Competition,! p. 26, et seq., I will now only add that, of all modes of tariff legislation, that by commercial treaties, which would deprive us for long terms of the power to regulate our finances in accordance with our own interest, is evidently the most dangerous and the least fitted to our circumstances, besides being unconstitutional, since such treaties are in violation of the exclusive privilege of originating revenue legislation, which be¬ longs to the House of Representatives.! * New York Nation, April 29, 1875. f Published by Henry Carey Baird, Philadelphia. J An attempt to fasten upon us a commercial treaty is simply an attempt to get the better of us in a bargain, and though such treaties are usually urged by Free Traders, they are in viola¬ tion of the principles of Free Trade, as is thus shown by the “Melbourne Age:” “The Free Traders of England do not yet quite understand their own principles. If they ever \ 35 To conclude: National Self-Protection versus Free Trade - is no debating club topic, resultless whichever \yay decided, but is a most serious question fraught with earnest verities and consequences. That Americans accustomed to look sharply to the main chance will in the future as in the past generally decide this great question aright, cannot be doubted, though Mr. Cobden’s calm British affec¬ tation of superior wisdom and virtue may impose upon the indiffer¬ ent with an overbearing assumption of absolute right for the Free Trade doctrines which his own nation dares not practice; though Mr. Mill’s logical cobwebs may be spun all round and round the little parlor which British trade obligingly invites the world to enter; even though Mr. D. A. Wells’s formidable statistics may demonstrate how disastrously tariffs affect the American laborer by making a family of parents and four children almost twice as costly to maintain as a family of parents and six children.* The ultra-marinism (if I may coin the word) of an English clique will as time passes be more clearly seen for what it is, a sort of mercenary counterfeit of the ultramontanism which troubles Europe. Like that, it assumes to act across State lines, aiming to control State policy for its own ends and in foreign interests. Like that, while deluding its adherents and dictating their creed, it so flat¬ ters them with its condescending approval that they think them¬ selves the salt of the earth. Like that, it foments discord between the citizens of a single government by insidiously asserting or sug¬ gesting that one class is oppressed by another, and that it is the friend of the oppressed. Like that, it assumes a sort of apostolic character and authority, offering to enlighten and comfort a be- did, the secret is lost to them. They are still clamorous for commercial treaties, which shall secure advantages to English commerce, without' inquiring too curiously into their effects on Free Trade with the rest of the world. ■* * * * They do not see that the principles of Free Trade demand the abrogation of all commercial treaties, and that the making of a bargain with any other country for the remission, imposition, alteration, or continuance of any impost on either side is objectionable per se." After showing how England has been hampered in her European policy by her Free Trade proffegandism, the “ Age ” continues: “The result of it all will be that England will be taunted with the decay of her influence as a European power, whereas she is only unsuccessful in the management of her hobby-horse. We look in vain for evidences of success in any quarter for the spread of the Manchester confession of faith.” * See hi 0 report for 1868 as Revenue Commissioner; also Kelley’s Speeches, pp. 271 and 272. 36 nighted and wicked world—for the slight consideration of universal mastery. Like that, it interferes between the civil government and the citizen, and strikes at the root of civil order; weakening the bonds of allegiance by proclaiming the iniquity of certain exac¬ tions, and insinuating sotto voce that the evasion (as by smug¬ gling) of those exactions, rightful though they be, and neces¬ sary to the existence of the State, is but a slight and condonable offense which may even be secretly applauded. Like that, it would undermine the autonomy of States by setting up quite outside of the nation—and if in hostility with its most vital and cherished purposes, no matter—a false object of veneration and almost of worship, for which, and not for the national will, obedience is claimed. Like that, it aims to control the education of the young, to train up the new generations in its sophisms by which patriotism is to be sneered away and abolished as an antiquated and injurious delusion, and by thus rearing up a race of myrmidons to strengthen itself as imperium in imperio. Like that, but inferior since it in¬ vokes only the love of gain or at best a hypocritical philanthropy instead of a catholic religion as the justification for its intermed¬ dling, its schemes will come to naught, and it will be spurned by the sober judgment of America. If some of my expressions appear to be dictated by acerbity towards England, it is not because of ill will towards that people from whom by inheritance and by example we have derived so much, and many of whose individuals are among the most estimable of mankind, but because the pertinacity and insolence of her propagandists obliges me to expose the mere selfishness of the trading class by which she is at present governed, in order that t we may not be overborne by their pretensions of superior intelli¬ gence and righteousness. Let England by all means take for herself such course as she thinks likely to promote her interest. It is her right, and though we, seeing the unbalanced and distorted development which she has reached in attempting the industrial and financial subjugation of other nations, and observing the destructive incursions of Bel¬ gian iron workers and other foreign manufacturers into her unde¬ fended home market, may indulge the hope of her mending her 37 ways before it is too late for her self-preservation, we refrain from fomenting disturbances among her people by insisting on their adopting our policy. We shall take for ourselves, without asking her leave, the same privilege of consulting our own interests and doing our own think¬ ing. We shall grow in strength and in national completeness and independence, despite the groans and growls of the Cobden Club, after England shall have distinctly failed in grasping at universal domination through trade. We decline to be her victim or her dupe.