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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



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