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the¡¡whole¡£¡¡It¡¡also¡¡lies¡¡in¡¡the¡¡nature¡¡of¡¡protective¡¡tariffs¡¡that¡¡
they¡¡always¡¡cost¡¡the¡¡nation¡¡disproportionately¡¡much¡¡more¡¡than¡¡
they¡¡are¡¡worth¡¡to¡¡those¡¡vested¡¡interests¡¡which¡¡profit¡¡by¡¡them¡£¡¡In¡¡
this¡¡respect¡¡they¡¡are¡¡like¡¡any¡¡other¡¡method¡¡of¡¡businesslike¡¡
sabotage¡£¡¡Their¡¡aim£»¡¡and¡¡presumably¡¡their¡¡effect£»¡¡is¡¡to¡¡keep¡¡the¡¡
price¡¡up¡¡by¡¡keeping¡¡the¡¡supply¡¡down£»¡¡to¡¡hinder¡¡competitors¡¡and¡¡
retard¡¡production¡£¡¡As¡¡in¡¡other¡¡instances¡¡of¡¡businesslike¡¡
sabotage£»¡¡therefore£»¡¡the¡¡net¡¡margin¡¡of¡¡advantage¡¡to¡¡those¡¡who¡¡
profit¡¡by¡¡it¡¡is¡¡greatly¡¡less¡¡than¡¡what¡¡it¡¡costs¡¡the¡¡community¡£¡¡
¡¡¡¡¡¡¡¡Yet¡¡it¡¡is¡¡to¡¡be¡¡noted¡¡that¡¡the¡¡Americans¡¡have¡¡prospered£»¡¡on¡¡
the¡¡whole£»¡¡under¡¡protective¡¡tariffs¡¡which¡¡have¡¡been¡¡as¡¡
ingeniously¡¡and¡¡comprehensively¡¡foolish¡¡as¡¡could¡¡well¡¡be¡¡
contrived¡£¡¡There¡¡is¡¡even¡¡some¡¡color¡¡of¡¡reason¡¡in¡¡the¡¡contentions¡¡
of¡¡the¡¡protectionists¡¡that¡¡the¡¡more¡¡reasonable¡¡tariffs¡¡have¡¡
commonly¡¡been¡¡more¡¡depressing¡¡to¡¡industry¡¡than¡¡the¡¡most¡¡imbecile¡¡
of¡¡them¡£¡¡All¡¡of¡¡which¡¡should¡¡be¡¡disquieting¡¡to¡¡the¡¡advocates¡¡of¡¡
free¡¡trade¡£¡¡The¡¡defect¡¡of¡¡the¡¡free¡­trade¡¡argument£»¡¡and¡¡the¡¡
disappointment¡¡of¡¡free¡­trade¡¡policies£»¡¡lies¡¡in¡¡overlooking¡¡the¡¡
fact¡¡that¡¡in¡¡the¡¡absence¡¡of¡¡an¡¡obstructive¡¡tariff¡¡substantially¡¡
the¡¡same¡¡amount¡¡of¡¡obstruction¡¡has¡¡to¡¡be¡¡accomplished¡¡by¡¡other¡¡
means£»¡¡if¡¡business¡¡is¡¡to¡¡prosper¡£¡¡And¡¡business¡¡prosperity¡¡is¡¡the¡¡
only¡¡manner¡¡of¡¡prosperity¡¡known¡¡or¡¡provided¡¡for¡¡among¡¡the¡¡
civilised¡¡nations¡£¡¡It¡¡is¡¡the¡¡only¡¡manner¡¡of¡¡prosperity¡¡on¡¡which¡¡
the¡¡divine¡¡right¡¡of¡¡the¡¡nation¡¡gives¡¡it¡¡a¡¡claim¡£¡¡A¡¡protective¡¡
tariff¡¡is¡¡only¡¡an¡¡alternative¡¡method¡¡of¡¡businesslike¡¡sabotage¡£¡¡If¡¡
and¡¡so¡¡far¡¡as¡¡this¡¡method¡¡of¡¡keeping¡¡the¡¡supply¡¡of¡¡goods¡¡within¡¡
salutary¡¡bounds¡¡is¡¡not¡¡resorted¡¡to£»¡¡other¡¡means¡¡of¡¡accomplishing¡¡
the¡¡same¡¡result¡¡must¡¡be¡¡employed¡£¡¡For¡¡so¡¡long¡¡as¡¡investment¡¡
continues¡¡to¡¡control¡¡industry¡¡the¡¡welfare¡¡of¡¡the¡¡community¡¡is¡¡
bound¡¡up¡¡with¡¡the¡¡prosperity¡¡of¡¡its¡¡business£»¡¡and¡¡business¡¡can¡¡
not¡¡be¡¡carried¡¡on¡¡without¡¡reasonably¡¡profitable¡¡prices£»¡¡and¡¡
reasonably¡¡profitable¡¡prices¡¡can¡¡not¡¡be¡¡maintained¡¡without¡¡a¡¡
salutary¡¡limitation¡¡of¡¡the¡¡supply£»¡¡which¡¡means¡¡slowing¡¡down¡¡
production¡¡to¡¡such¡¡a¡¡rate¡¡and¡¡volume¡¡as¡¡the¡¡traffic¡¡will¡¡bear¡£¡¡
¡¡¡¡¡¡¡¡A¡¡protective¡¡tariff¡¡is¡¡only¡¡one¡¡means¡¡of¡¡crippling¡¡the¡¡
country's¡¡industrial¡¡forces£»¡¡for¡¡the¡¡good¡¡of¡¡business¡£¡¡In¡¡its¡¡
absence¡¡all¡¡that¡¡matter¡¡will¡¡be¡¡taken¡¡care¡¡of¡¡by¡¡other¡¡means¡£¡¡The¡¡
tariff¡¡may¡¡perhaps¡¡be¡¡a¡¡little¡¡the¡¡most¡¡flagrant¡¡method¡¡of¡¡
sabotage¡¡by¡¡which¡¡the¡¡vested¡¡interests¡¡are¡¡enabled¡¡to¡¡do¡¡a¡¡
reasonably¡¡profitable¡¡business£»¡¡but¡¡there¡¡is¡¡nothing¡¡more¡¡than¡¡a¡¡
difference¡¡of¡¡degree£»¡¡and¡¡not¡¡a¡¡large¡¡difference¡¡at¡¡that¡£¡¡So¡¡long¡¡
as¡¡industry¡¡is¡¡managed¡¡with¡¡a¡¡view¡¡to¡¡a¡¡profitable¡¡price¡¡it¡¡is¡¡
quite¡¡indispensable¡¡to¡¡guard¡¡against¡¡an¡¡excessive¡¡rate¡¡and¡¡volume¡¡
of¡¡output¡£¡¡In¡¡the¡¡absence¡¡of¡¡all¡¡businesslike¡¡sabotage¡¡the¡¡
productive¡¡capacity¡¡of¡¡the¡¡industrial¡¡system¡¡would¡¡very¡¡shortly¡¡
pass¡¡all¡¡reasonable¡¡bounds£»¡¡prices¡¡would¡¡decline¡¡disastrously¡¡and¡¡
overhead¡¡charges¡¡would¡¡not¡¡be¡¡covered£»¡¡fixed¡¡charges¡¡on¡¡
corporation¡¡securities¡¡and¡¡other¡¡credit¡¡instruments¡¡could¡¡not¡¡be¡¡
met£»¡¡and¡¡the¡¡whole¡¡structure¡¡of¡¡business¡¡enterprise¡¡would¡¡
collapse£»¡¡as¡¡it¡¡occasionally¡¡has¡¡done¡¡in¡¡times¡¡of¡¡
¡¨over¡­production¡£¡¨¡¡There¡¡is¡¡no¡¡doing¡¡business¡¡without¡¡a¡¡fair¡¡
price£»¡¡since¡¡the¡¡net¡¡price¡¡over¡¡cost¡¡is¡¡the¡¡motive¡¡of¡¡business¡£¡¡A¡¡
protective¡¡tariff¡¡is£»¡¡in¡¡effect£»¡¡an¡¡auxiliary¡¡safeguard¡¡against¡¡
overproduction¡£¡¡Incidentally¡¡the¡¡fact¡¡that¡¡its¡¡imposition¡¡does¡¡
not¡¡result¡¡in¡¡insufferable¡¡hardship¡¡serves¡¡also¡¡to¡¡show¡¡that¡¡the¡¡
new¡¡order¡¡of¡¡industry¡¡is¡¡highly¡¡productive£»¡¡quite¡¡inordinately¡¡
productive¡¡in¡¡fact¡£¡¡And¡¡it¡¡is¡¡a¡¡divine¡¡right¡¡of¡¡the¡¡nation¡¡to¡¡use¡¡
its¡¡discretion¡¡and¡¡offset¡¡this¡¡inordinate¡¡efficiency¡¡of¡¡its¡¡
common¡¡stock¡¡of¡¡knowledge¡¡by¡¡adroitly¡¡crippling¡¡its¡¡own¡¡commerce¡¡
and¡¡the¡¡commerce¡¡of¡¡its¡¡neighbors£»¡¡for¡¡the¡¡benefit¡¡of¡¡those¡¡
vested¡¡interests¡¡that¡¡are¡¡domiciled¡¡within¡¡the¡¡national¡¡
frontiers¡£¡¡
¡¡¡¡¡¡¡¡But¡¡the¡¡divine¡¡right¡¡of¡¡national¡¡self¡­direction¡¡also¡¡covers¡¡
much¡¡else¡¡of¡¡the¡¡same¡¡description£»¡¡besides¡¡the¡¡privilege¡¡of¡¡
setting¡¡up¡¡a¡¡tariff¡¡in¡¡restraint¡¡of¡¡trade¡£¡¡There¡¡are¡¡many¡¡
channels¡¡of¡¡such¡¡discrimination£»¡¡of¡¡divers¡¡kinds£»¡¡but¡¡always¡¡it¡¡
will¡¡be¡¡found¡¡that¡¡these¡¡channels¡¡are¡¡channels¡¡of¡¡sabotage¡¡and¡¡
that¡¡they¡¡serve¡¡the¡¡advantage¡¡of¡¡some¡¡group¡¡of¡¡vested¡¡interests¡¡
which¡¡do¡¡business¡¡under¡¡the¡¡shelter¡¡of¡¡the¡¡national¡¡pretensions¡£¡¡
There¡¡are¡¡foreign¡¡investments¡¡and¡¡concessions¡¡to¡¡be¡¡procured¡¡and¡¡
safeguarded¡¡for¡¡the¡¡nation's¡¡business¡¡men¡¡by¡¡moral¡¡suasion¡¡backed¡¡
with¡¡warlike¡¡force£»¡¡and¡¡the¡¡common¡¡man¡¡pays¡¡the¡¡cost£»¡¡there¡¡is¡¡
discrimination¡¡to¡¡be¡¡exercised¡¡and¡¡perhaps¡¡subsidies¡¡and¡¡credits¡¡
to¡¡be¡¡accorded¡¡those¡¡of¡¡the¡¡nation's¡¡business¡¡men¡¡who¡¡derive¡¡a¡¡
profit¡¡from¡¡shipping£»¡¡for¡¡the¡¡discomfiture¡¡of¡¡alien¡¡competitors£»¡¡
and¡¡the¡¡common¡¡man¡¡pays¡¡the¡¡cost£»¡¡there¡¡are¡¡colonies¡¡to¡¡be¡¡
procured¡¡and¡¡administered¡¡at¡¡the¡¡public¡¡expense¡¡for¡¡the¡¡private¡¡
gain¡¡of¡¡certain¡¡traders£»¡¡concessionaires¡¡and¡¡administrative¡¡
office¡­holders£»¡¡and¡¡the¡¡common¡¡man¡¡pays¡¡the¡¡cost¡£¡¡Back¡¡of¡¡it¡¡all¡¡
is¡¡the¡¡nation's¡¡divine¡¡right¡¡to¡¡carry¡¡arms£»¡¡to¡¡support¡¡a¡¡
competitive¡¡military¡¡and¡¡naval¡¡establishment£»¡¡which¡¡has¡¡ceased£»¡¡
under¡¡the¡¡new¡¡order£»¡¡to¡¡have¡¡any¡¡other¡¡material¡¡use¡¡than¡¡to¡¡
enforce¡¡or¡¡defend¡¡the¡¡businesslike¡¡right¡¡of¡¡particular¡¡vested¡¡
interests¡¡to¡¡get¡¡something¡¡for¡¡nothing¡¡in¡¡some¡¡particular¡¡place¡¡
and¡¡in¡¡some¡¡particular¡¡way£»¡¡and¡¡the¡¡common¡¡man¡¡pays¡¡the¡¡cost¡¡and¡¡
swells¡¡with¡¡pride¡£¡¡
¡¡
Chapter¡¡7¡¡
¡¡
Live¡¡and¡¡Let¡¡Live¡¡
¡¡
¡¡¡¡¡¡¡¡The¡¡Nation's¡¡inalienable¡¡right¡¡of¡¡self¡­direction¡¡and¡¡
self¡­help¡¡is¡¡of¡¡the¡¡same¡¡nature¡¡and¡¡derivation¡¡as¡¡the¡¡like¡¡
inalienable¡¡right¡¡of¡¡self¡­help¡¡vested¡¡in¡¡an¡¡irresponsible¡¡king¡¡by¡¡
the¡¡grace¡¡of¡¡God¡£¡¡In¡¡both¡¡cases¡¡alike¡¡it¡¡is¡¡a¡¡divine¡¡right£»¡¡in¡¡
the¡¡sense¡¡that¡¡it¡¡is¡¡irresponsible¡¡and¡¡will¡¡not¡¡bear¡¡scrutiny£»¡¡
being¡¡an¡¡arbitrary¡¡right¡¡of¡¡self¡­help¡¡at¡¡the¡¡cost¡¡of¡¡any¡¡whom¡¡it¡¡
may¡¡concern¡£¡¡There¡¡is¡¡the¡¡further¡¡parallel¡¡that¡¡in¡¡both¡¡cases¡¡
alike¡¡the¡¡ordinary¡¡exercise¡¡of¡¡these¡¡rights¡¡confers¡¡no¡¡material¡¡
benefit¡¡on¡¡the¡¡underlying¡¡community¡£¡¡In¡¡practical¡¡effect¡¡the¡¡
exercise¡¡of¡¡such¡¡divine¡¡rights£»¡¡whether¡¡by¡¡a¡¡sovereign¡¡monarch¡¡or¡¡
by¡¡the¡¡officials¡¡of¡¡a¡¡sovereign¡¡nation£»¡¡works¡¡damage¡¡and¡¡
discomfort¡¡to¡¡one¡¡and¡¡another£»¡¡within¡¡the¡¡national¡¡frontiers¡¡or¡¡
beyond¡¡them£»¡¡with¡¡nothing¡¡better¡¡to¡¡show¡¡for¡¡it¡¡than¡¡some¡¡
relatively¡¡slight¡¡gain¡¡in¡¡prestige¡¡or¡¡in¡¡wealth¡¡for¡¡some¡¡
relatively¡¡small¡¡group¡¡of¡¡privileged¡¡persons¡¡or¡¡vested¡¡interests¡£¡¡
And¡¡the¡¡gain¡¡of¡¡those¡¡who¡¡profit¡¡by¡¡this¡¡means¡¡is¡¡always¡¡got¡¡at¡¡
the¡¡cost¡¡of¡¡the¡¡common¡¡man¡¡at¡¡home¡¡and¡¡abroad¡£¡¡These¡¡inalienable¡¡
rights¡¡are¡¡an¡¡abundant¡¡source¡¡of¡¡grievances¡¡to¡¡be¡¡redressed¡¡at¡¡
the¡¡cost¡¡of¡¡the¡¡common¡¡man¡£¡¡
¡¡¡¡¡¡¡¡It¡¡has¡¡long¡¡been¡¡a¡¡stale¡¡commonplace¡¡that¡¡the¡¡quarrels¡¡of¡¡
competitive¡¡kings¡¡in¡¡pursuit¡¡of¡¡their¡¡divine¡¡rights¡¡have¡¡brought¡¡
nothing¡¡but¡¡damage¡¡and¡¡discomfort¡¡to¡¡the¡¡underlying¡¡peoples¡¡whose¡¡
material¡¡wealth¡¡and¡¡man¡¡power¡¡have¡¡been¡¡made¡¡use¡¡of¡¡for¡¡national¡¡
enterprise¡¡of¡¡this¡¡kind¡£¡¡And¡¡it¡¡is¡¡no¡¡less¡¡evident£»¡¡though¡¡
perhaps¡¡less¡¡notorious£»¡¡that¡¡the¡¡pursuit¡¡of¡¡national¡¡advantages¡¡
by¡¡competitive¡¡nations¡¡by¡¡use¡¡of¡¡the¡¡same¡¡material¡¡wealth¡¡and¡¡man¡¡
power¡¡unavoidably¡¡brings¡¡nothing¡¡better¡¡than¡¡the¡¡same¡¡net¡¡output¡¡
of¡¡damage¡¡and¡¡discomfort¡¡to¡¡all¡¡the¡¡peoples¡¡concerned¡£¡¡There¡¡is¡¡
of¡¡course¡¡the¡¡reservation¡¡that¡¡in¡¡the¡¡one¡¡case¡¡the¡¡kings¡¡and¡¡
their¡¡accomplices¡¡and¡¡pensioners¡¡have¡¡come¡¡in¡¡for¡¡some¡¡gain¡¡in¡¡
prestige¡¡and¡¡in¡¡perquisites£»¡¡while¡¡in¡¡the¡¡case¡¡of¡¡the¡¡competitive¡¡
nations¡¡certain¡¡vested¡¡interests¡¡and¡¡certain¡¡groups¡¡of¡¡the¡¡kept¡¡
classes¡¡stand¡¡to¡¡gain¡¡something¡¡in¡¡the¡¡way¡¡of¡¡perquisites¡¡and¡¡
free¡¡income£»¡¡but¡¡always¡¡and¡¡in¡¡the¡¡nature¡¡of¡¡the¡¡case¡¡the¡¡total¡¡
gain¡¡is¡¡less¡¡than¡¡the¡¡cost£»¡¡and¡¡always¡¡the¡¡gain¡¡goes¡¡to¡¡the¡¡kept¡¡
classes¡¡and¡¡the¡¡cost¡¡falls¡¡on¡¡the¡¡common¡¡man¡£¡¡So¡¡much¡¡is¡¡
notorious£»¡¡particularly¡¡so¡¡far¡¡as¡¡it¡¡is¡¡a¡¡question¡¡of¡¡material¡¡
gain¡¡and¡¡loss¡£¡¡So¡¡far¡¡as¡¡it¡¡is¡¡an¡¡immaterial¡¡question¡¡of¡¡jealousy¡¡
and¡¡prestige£»¡¡the¡¡line¡¡of¡¡division¡¡runs¡¡between¡¡nations£»¡¡but¡¡as¡¡
regards¡¡material¡¡gain¡¡and¡¡loss¡¡it¡¡is¡¡always¡¡a¡¡division¡¡between¡¡
the¡¡kept¡¡classes¡¡and¡¡the¡¡common¡¡man£»¡¡and¡¡always¡¡the¡¡common¡¡man¡¡
has¡¡more¡¡to¡¡lose¡¡than¡¡the¡¡kept¡¡classes¡¡stand¡¡to¡¡gain¡£¡¡
¡¡¡¡¡¡¡¡The¡¡war¡¡is¡¡now¡¡concluded£»¡¡provisionally£»¡¡and¡¡peace¡¡is¡¡in¡¡
prospect¡¡for¡¡the¡¡immediate¡¡future£»¡¡also¡¡provisionally¡£¡¡As¡¡is¡¡true¡¡
between¡¡individuals£»¡¡so¡¡also¡¡among¡¡the¡¡nations£»¡¡peace¡¡means¡¡the¡¡
same¡¡thing¡¡as¡¡Live¡¡and¡¡Let¡¡Live£»¡¡which¡¡also¡¡means¡¡the¡¡same¡¡thing¡¡
as¡¡a¡¡world¡¡made¡¡safe¡¡for¡¡democracy¡£¡¡And¡¡the¡¡rule¡¡of¡¡Live¡¡and¡¡Let¡¡
Live¡¡means¡¡the¡¡discontinuance¡¡of¡¡animosity¡¡and¡¡discrimination¡¡
between¡¡the¡¡nations¡£¡¡Therefore¡¡it¡¡involves¡¡the¡¡disallowance¡¡of¡¡
such¡¡incompatible¡¡national¡¡pretensions¡¡as¡¡are¡¡likely¡¡to¡¡afford¡¡
ground¡¡for¡¡international¡¡grievances£»¡¡¡¡which¡¡comes¡¡near¡¡
involving¡¡the¡¡disallowance¡¡of¡¡all¡¡those¡¡claims¡¡and¡¡perquisites¡¡
that¡¡habitually¡¡go¡¡in¡¡under¡¡the¡¡captions¡¡of¡¡¡¨national¡¡
self¡­determination¡¨¡¡and¡¡¡¨national¡¡integrity£»¡¨¡¡as¡¡these¡¡phrases¡¡
are¡¡employed¡¡in¡¡diplomatic¡¡intercourse¡£¡¡At¡¡the¡¡same¡¡time¡¡it¡¡
involves¡¡the¡¡disallowance¡¡of¡¡all¡¡those¡¡class¡¡pretensions¡¡and¡¡
vested¡¡interests¡¡that¡¡make¡¡for¡¡dissension¡¡within¡¡the¡¡nation¡£¡¡
Ill¡­will¡¡is¡¡not¡¡a¡¡practicable¡¡basis¡¡of¡¡peace£»¡¡whether¡¡within¡¡the¡¡
nation¡¡or¡¡between¡¡the¡¡nations¡£¡¡So¡¡much¡¡is¡¡plain¡¡matter¡¡of¡¡course¡£¡¡
What¡¡may¡¡be¡¡the¡¡chances¡¡of¡¡peace¡¡and¡¡war£»¡¡at¡¡home¡¡and¡¡abroad£»¡¡in¡¡

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