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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