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where　the　Government　is　unable　to　provide　any　remedy　for　its



interruption；　we　often　see　manufacturers　continuing　to　produce　at



an　actual　loss。　They　want　to　avert；　in　expectation　of　better　times；



the　irrecoverable　injury　which　they　would　suffer　from　a　stoppage　of



their　works。



　　　　By　free　competition　it　is　often　hoped　to　oblige　the　competitor



to　discontinue　work　which　has　compelled　the　manufacturer　or



merchant　to　sell　his　products　under　their　legitimate　price　and



often　at　an　actual　loss。　The　object　is　not　merely　to　prevent　the



interruption　of　our　own　industry；　but　also　to　force　others　to



discontinue　theirs　in　the　hope　later　on　of　being　able　by　better



prices　to　recoup　the　losses　which　have　been　suffered。



　　　　In　any　case　striving　after　monopoly　forms　part　of　the　very



nature　of　manufacturing　industry。　This　circumstance　tends　to



justify　and　not　to　discredit　a　protective　policy；　for　this



striving；　when　restricted　in　its　operation　to　the　home　market；



tends　to　promote　cheaper　prices　and　improvements　in　the　art　of



production；　and　thus　increases　the　national　prosperity；　while　the



same　thing；　in　case　it　presses　from　without　with　overwhelming　force



on　the　internal　industry；　will　occasion　the　interruption　of　work



and　downfall　of　the　internal　national　industry。



　　　　The　circumstance　that　there　are　no　limits　to　manufacturing



production　（especially　since　it　has　been　so　extraordinarily　aided



and　promoted　by　machinery）　except　the　limits　of　the　capital　which



it　possesses　and　its　means　of　effecting　sales；　enables　that



particular　nation　whose　manufacturing　industry　has　continued　for　a



century；　which　has　accumulated　immense　capitals；　extended　its



commerce　all　over　the　world；　dominated　the　money　market　by　means　of



large　institutions　of　credit　（whose　operations　are　able　to　depress



the　prices　of　fabrics　and　to　induce　merchants　to　export）；　to



declare　a　war　of　extermination　against　the　manufacturers　of　all



other　countries。　Under　such　circumstances　it　is　quite　impossible



that　in　other　nations；　'in　the　natural　course　of　things'　（as　Adam



Smith　expresses　himself）；　merely　in　consequence　of　their　progress



in　agriculture；　immense　manufactures　and　works　should　be



established；　or　that　those　manufactures　which　have　originated　in



consequence　of　the　commercial　interruptions　caused　by　war　should　be



able；　'in　the　natural　course　of　things；'　to　continue　to　maintain



themselves。　The　reason　for　this　is　the　same　as　that　why　a　child　or



a　boy　in　wrestling　with　a　strong　man　can　scarcely　be　victorious　or



even　offer　steady　resistance。　The　manufactories　which　constitute



the　commercial　and　industrial　supremacy　（of　England）　have　a



thousand　advantages　over　the　newly　born　or　half…grown　manufactories



of　other　nations。　The　former；　for　instance；　can　obtain　skilled　and



experienced　workmen　in　the　greatest　number　and　at　the　cheapest



wages；　the　best　technical　men　and　foremen；　the　most　perfect　and　the



cheapest　machinery；　the　greatest　benefit　in　buying　and　selling



advantageously；　further；　the　cheapest　means　of　transport；　as



respects　raw　materials　and　also　in　respect　of　transporting　goods



when　sold；　more　extended　credit　for　the　manufacturers　with　banks



and　money　institutions　at　the　lowest　rates　of　interest；　greater



commercial　experience；　better　tools；　buildings；　arrangements；



connections；　such　as　can　only　be　acquired　and　established　in　the



course　of　generations；　an　enormous　home　market；　and；　what　is



equally　good；　a　colonial　market　equally　enormous。　Hence　under　all



circumstances　the　English　manufacturers　can　feel　certainty　as　to



the　sale　of　large　quantities　of　manufactured　products　by　vigorous



efforts；　and　consequently　possess　a　guarantee　for　the　continuance



of　their　business　and　abundant　means　to　sell　on　credit　for　years　to



come　in　the　future；　if　it　is　required　to　acquire　the　control　of　a



foreign　market。　If　we　enumerate　and　consider　these　advantages　one



after　another；　we　may　easily　be　convinced　that　in　competition　with



such　a　power　it　is　simply　foolish　to　rest　our　hopes　on　the



operation　of　'the　natural　course　of　things'　under　free　competition；



where；　as　in　our　case；　workmen　and　technical　men　have　in　the　first



place　yet　to　be　trained；　where　the　manufacture　of　machinery　and



proper　means　of　transport　are　merely　in　course　of　erection；　where



even　the　home　market　is　not　secured　to　the　manufacturer　　not　to



mention　any　important　export　market；　where　the　credit　that　the



manufacturer　can　obtain　is　under　the　most　fortunate　circumstances



limited　to　the　lowest　point；　where　no　man　can　be　certain　even　for



a　day　that；　in　consequence　of　English　commercial　crises　and　bank



operations；　masses　of　foreign　goods　may　not　be　thrown　on　the　home



market　at　prices　which　scarcely　recoup　the　value　of　the　raw



materials　of　which　they　are　made；　and　which　bring　to　a　stand　for



years　the　progress　of　our　own　manufacturing　industries。



　　　　It　would　be　in　vain　for　such　nations　to　resign　themselves　to　a



state　of　perpetual　subordination　to　the　English　manufacturing



supremacy；　and　content　themselves　with　the　modest　determination　to



supply　it　with　what　it　may　not　be　able　to　produce　for　itself　or　to



procure　elsewhere。　Even　by　this　subordination　they　will　find　no



permanent　benefit。　What　benefit　is　it　to　the　people　of　the　United



States；　for　instance；　that　they　sacrifice　the　welfare　of　their



finest　and　most　cultivated　states；　the　states　of　free　labour；　and



perhaps　their　entire　future　national　greatness；　for　the　advantage



of　supplying　England　with　raw　cotton？　Do　they　thereby　restrict　the



endeavours　of　England　to　procure　this　material　from　other　districts



of　the　world？　In　vain　would　the　Germans　be　content　to　obtain　their



requirements　of　manufactured　goods　from　England　in　exchange　for



their　fine　sheep's　wool；　they　would　by　such　a　policy　hardly　prevent



Australia　from　flooding　all　Europe　with　fine　wool　in　the　course　of



the　next　twenty　years。



　　　　Such　a　condition　of　dependence　appears　still　more　deplorable



when　we　consider　that　such　nations　lose　in　times　of　war　their　means



of　selling　their　agricultural　products；　and　thereby　the　means　of



purchasing　the　manufacturing　products　of　the　foreigner。　At　such



times　all　economical　considerations　and　systems　are　thrust　into　the



background。　It　is　the　principle　of　self…maintenance；　of



self…defence；　which　counsels　the　nations　to　work　up　their



agricultural　products　themselves；　and　to　dispense　with　the



manufactured　goods　of　the　enemy。　Whatever　losses　may　be　involved　in



adopting　such　a　war…prohibitive　system；　cannot　be　taken　into



account　during　such　a　state　of　things。　However　great　the　exertions



and　the　sacrifices　may　have　been　by　which　the　agricultural　nation



during　the　time　of　war　has　called　into　existence　manufactures　and



works；　the　competition　of　the　manufacturing　supremacy　which　sets　in



on　the　recurrence　of　peace　will　again　destroy　all　these　creations



of　the　times　of　necessity。　In　short；　it　is　an　eternal　alternation



of　erecting　and　destroying；　of　prosperity　and　calamity　which　those



nations　have　to　undergo　who　do　not　strive　to　insure；　through



realisation　of　their　national　division　of　labour　and　through　the



confederation　of　their　own　powers　of　production；　the　benefits　of



the　continuation　of　their　own　industries　from　generation　to



generation。







Chapter　25







The　Manufacturing　Power　and　the　Inducement　to　Production　and



Consumption







　　　　In　society　man　is　not　merely　productive　owing　to　the



circumstance　that　he　directly　brings　forth　products　or　creates



powers　of　production；　but　he　also　becomes　productive　by　creating



inducements　to　production　and　to　consumption；　or　to　the　formation



of　productive　powers。



　　　　The　artist　by　his　works　acts　in　the　first　place　on　the



ennobling　and　refinement　of　the　human　spirit　and　on　the　productive



power　of　society；　but　inasmuch　as　the　enjoyment　of　art　presupposes



the　possession　of　those　material　means　whereby　it　must　be



purchased；　the　artist　also　offers　inducements　to　material



production　and　to　thrift。



　　　　Books　and　newspapers　act　on　the　mental　and　material　production



by　giving　information；　but　their　acquisition　costs　money；　and　so



far　the　enjoyment　which　they　afford　is　also　an　inducement　to



material　production。



　　　　The　education　of　youth　ennobles　society；　but　what　great



exertions　do　parents　make　to　obtain　the　means　of　giving　their



children　a　good　education！



　　　　What　immense　performances　in　both　mental　and　material



production　arise　out　of　the　e