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8;000;000 pounds (in 1871) to less than 3;000;000 pounds。
On the other hand; since List wrote; the United States of
America have increased and steadily maintained a considerable
protective duty on the importation of foreign silk manufactures。
The results of that policy were publicly stated by Mr Robert P。
Porter (member of the United States' Tariff Commission); in a
speech in 1883; to have been as follows:
Five thousand persons were employed in silk manufacture in the
United States before the Morill tariff (1861)。 In 1880 their number
had increased to 30;000。 The value of silk manufactures produced in
the States increased from 1;200;000 l。 in 1860 to more than
8;000;000 l。 in 1880。 'Yet the cost of the manufactured goods to
the consumer; estimated on a gold basis; has steadily declined at
a much greater rate than the cost of the raw material。' After
reference to the earthenware and plate…glass manufactures; Mr
Porter adds: 'The testimony before the Tariff Commission showed
unquestionably that the competition in the United States had
resulted in a reduction in the cost to the American consumer。 In
this way; gentlemen; I contend; and am prepared to prove
statistically。 that protection; so far as the United States are
concerned; has in every case ultimately benefited the consumer; and
on this ground I defend it and believe in it。' TRANSLATOR。
4。 Chaptal; De l'Industrie Fran鏰ise vol。 ii。; p。 147。
Chapter 34
The Insular Supremacy and the German Commercial Union
What a great nation is at the present day without a vigorous
commercial policy; and what she may become by the adoption of a
vigorous commercial policy; Germany has learnt for herself during
the last twenty years。 Germany was that which Franklin once said of
the State of New Jersey; 'a cask which was tapped and drained by
its neighbours on every side。' England; not contented with having
ruined for the Germans the greater part of their own manufactories
and supplied them with enormous quantities of cotton and woollen
fabrics; excluded from her ports German grain and timber; nay from
time to time also even German wool。 There was a time when the
export of manufactured goods from England to Germany was ten times
greater than that to her highly extolled East Indian Empire。
Nevertheless the all…monopolising islanders would not even grant to
the poor Germans what they conceded to the conquered Hindoos; viz。
to pay for the manufactured goods which they required by
agricultural produce。 In vain did the Germans humble themselves to
the position of hewers of wood and drawers of water for the
Britons。 The latter treated them worse than a subject people。
Nations; like individuals; if they at first only permit themselves
to be ill…treated by one; soon become scorned by all; and finally
become an object of derision to the very children。 France; not
contented with exporting to Germany enormous quantities of wine;
oil; silk; and millinery; grudged the Germans their exports of
cattle; grain; and flax; yes; even a small maritime province
formerly possessed by Germany and inhabited by Germans; which
having become wealthy and powerful by means of Germany; at all
times was only able to maintain itself with and by means of
Germany; barred for half a generation Germany's greatest river by
means of contemptible verbal quibbles。 To fill up the measure of
this contempt; the doctrine was taught from a hundred professorial
chairs; that nations could only attain to wealth and power by means
of universal free trade。 Thus it was; but how is it now? Germany
has advanced in prosperity and industry; in national self…respect
and in national power; in the course of ten years as much as in a
century。 And how has this result been achieved? It was certainly
good and beneficial that the internal tariffs were abolished which
separated Germans from Germans; but the nation would have derived
small comfort from that if her home industry had thenceforth
remained freely exposed to foreign competition。 It was especially
the protection which the tariff of the Zollverein secured to
manufactured articles of common use; which has wrought this
miracle。 Let us freely confess it; for Dr Bowring(1*) has
incontrovertibly shown it; that the Zollverein tariff has not; as
was before asserted; imposed merely duties for revenue that it
has not confined itself to duties of ten to fifteen per cent as
Huskisson believed let us freely admit that it has imposed
protective duties of from twenty to sixty per cent as respects the
manufactured articles of common use。
But what has been the operation of these protective duties? Are
the consumers paying for their German manufactured goods twenty to
sixty per cent more than they formerly paid for foreign ones (as
must be the case if the popular theory is correct); or are these
goods at all worse than the foreign ones? Nothing of the sort。 Dr
Bowring himself adduces testimony that the manufactured goods
produced under the high customs tariff are both better and cheaper
than the foreign ones。(2*) The internal competition and the
security from destructive competition by the foreigner has wrought
this miracle; of which the popular school knows nothing and is
determined to know nothing。 Thus; that is not true; which the
popular school maintains; that a protective duty increases the
price of the goods of home production by the amount of the
protective duty。 For a short time the duty may increase the price;
but in every nation which is qualified to carry on manufacturing
industry the consequence of the protection will be; that the
internal competition will soon reduce the prices lower than they
had stood at when the importation was free。
But has agriculture at all suffered under these high duties?
Not in the least; it has gained…gained tenfold during the last ten
years。 The demand for agricultural produce has increased。 The
prices of it everywhere are higher。 It is notorious that solely in
consequence of the growth of the home manufactories the value of
land has everywhere risen from fifty to a hundred per cent; that
everywhere higher wages are being paid; and that in all directions
improvements in the means of transport are either being effected or
projected。
Such brilliant results as these must necessarily encourage us
to proceed farther on the system which we have commenced to follow。
Other States of the Union have also proposed to take similar steps;
but have not yet carried them into effect; while; as it would
appear; some other States of the Union only expect to attain
prosperity solely by the abolition of the English duties on grain
and timber; and while (as it is alleged) there are still to be
found influential men who believe in the cosmopolitical system and
distrust their own experience。 Dr Bowring's report gives us most
important explanations on these points as well as on the
circumstances of the German Commercial Union and the tactics of the
English Government。 Let us endeavour to throw a little light on
this report。
First of all; we have to consider the point of view from which
it was written。 Mr Labouchere; President of the board of Trade
under the Melbourne Ministry; had sent Dr Bowring to Germany for
the same purpose as that for which Mr Poulett Thompson had sent him
to France in the year 1834。 Just as it was intended to mislead the
French by concessions in respect of wines and brandies to open
their home market to English manufactured goods; so it was intended
to mislead the Germans to do the same by concessions in respect of
grain and timber; only there was a great difference between the two
missions in this respect; that the concession which was to be
offered to the French had to fear no opposition in England; while
that which had to be offered to the Germans had first to be fought
for in England herself。
Hence the tendency of these two reports was of necessity of
quite a different character。 The report on the commercial relations
between France and England was written exclusively for the French;
to them it was necessary to represent that Colbert had accomplished
nothing satisfactory through his protective regulations; it was
necessary to make people believe that the Eden Treaty was
beneficial to France; and that Napoleon's Continental system; as
well as the then existing French prohibitive system; had been