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it is in the nature of things that this evil should rise to a point



when it will become intolerable to those two nations themselves;



and when incorporation with a larger nationality must seem



desirable and necessary to them。



    Belgium can only remedy by means of confederation with a



neighbouring larger nation her needs which are inseparable from her



restricted territory and population。 The United States and Canada;



the more their population increases; and the more the protective



system of the United States is developed; so much the more will



they feel themselves drawn towards one another; and the less will



it be possible for England to prevent a union between them。



    As respects their economy; nations have to pass through the



following stages of development: original barbarism; pastoral



condition; agricultural condition; agricultural…manufacturing



condition; and agricultural…manufacturing…commercial condition。



    The industrial history of nations; and of none more clearly



than that of England; proves that the transition from the savage



state to the pastoral one; from the pastoral to the agricultural;



and from agriculture to the first beginnings in manufacture and



navigation; is effected most speedily and advantageously by means



of free commerce with further advanced towns and countries; but



that a perfectly developed manufacturing industry; an important



mercantile marine; and foreign trade on a really large scale; can



only be attained by means of the interposition of the power of the



State。



    The less any nation's agriculture has been perfected; and the



more its foreign trade is in want of opportunities of exchanging



the excess of native agricultural products and raw materials for



foreign manufactured goods; the deeper that the nation is still



sunk in barbarism and fitted only for an absolute monarchical form



of government and legislation; the more will free trade (i。e。 the



exportation of agricultural products and the importation of



manufactured goods) promote its prosperity and civilisation。



    On the other hand; the more that the agriculture of a nation;



its industries; and its social; political; and municipal



conditions; are thoroughly developed; the less advantage will it be



able to derive for the improvement of its social conditions; from



the exchange of native agricultural products and raw materials for



foreign manufactured goods; and the greater disadvantages will it



experience from the successful competition of a foreign



manufacturing power superior to its own。



    Solely in nations of the latter kind; namely; those which



possess all the necessary mental and material conditions and means



for establishing a manufacturing power of their own; and of thereby



attaining the highest degree of civilisation; and development of



material prosperity and political power; but which are retarded in



their progress by the competition of a foreign manufacturing power



which is already farther advanced than their own  only in such



nations are commercial restrictions justifiable for the purpose of



establishing and protecting their own manufacturing power; and even



in them it is justifiable only until that manufacturing power is



strong enough no longer to have any reason to fear foreign



competition; and thenceforth only so far as may be necessary for



protecting the inland manufacturing power in its very roots。



    The system of protection would not merely be contrary to the



principles of cosmopolitical economy; but also to the rightly



understood advantage of the nation itself; were it to exclude



foreign competition at once and altogether; and thus isolate from



other nations the nation which is thus protected。 If the



manufacturing power to be protected be still in the first period of



its development; the protective duties must be very moderate; they



must only rise gradually with the increase of the mental and



material capital; of the technical abilities and spirit of



enterprise of the nation。 Neither is it at all necessary that all



branches of industry should be protected in the same degree。 Only



the most important branches require special protection; for the



working of which much outlay of capital in building and management;



much machinery; and therefore much technical knowledge; skill; and



experience; and many workmen are required; and whose products



belong to the category of the first necessaries of life; and



consequently are of the greatest importance as regards their total



value as well as regards national independence (as; for example;



cotton; woollen and linen manufactories; &c。)。 If these main



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

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