Ingeneralitappearstousthatthedefendersoffreetrade
　　wouldarguemoreconsistentlyinregardtomoneycrisesandthe
　　balanceoftrade，aswellastomanufacturingindustry，ifthey
　　openlyadvisedallnationstoprefertosubjectthemselvestothe
　　EnglishasdependenciesofEngland，andtodemandinexchangethe
　　benefitsofbecomingEnglishcolonies，whichconditionof
　　dependencewouldbe，ineconomicalrespects，clearlymore
　　favourabletothemthantheconditionofhalfindependenceinwhich
　　thosenationslivewho，withoutmaintaininganindependentsystem
　　ofindustry，commerce，andcreditoftheirown，neverthelessalways
　　wanttoassumetowardsEnglandtheattitudeofindependence。Donot
　　weseewhatPortugalwouldhavegainedifshehadbeengoverned
　　sincetheMethuenTreatybyanEnglishviceroy——ifEnglandhad
　　transplantedherlawsandhernationalspirittoPortugal，and
　　takenthatcountryliketheEastIndianEmpirealtogetherunder
　　herwings？Donotweperceivehowadvantageoussuchacondition
　　wouldbetoGermany——tothewholeEuropeancontinent？
　　India，itistrue，haslosthermanufacturingpowertoEngland，
　　buthasshenotgainedconsiderablyinherinternalagricultural
　　productionandintheexportationofheragriculturalproducts？
　　HavenottheformerwarsunderherNabobsceased？Arenotthe
　　nativeIndianprincesandkingsextremelywelloff？Havetheynot
　　preservedtheirlargeprivaterevenues？Donottheyfindthemselves
　　therebycompletelyrelievedoftheweightycaresofgovernment？
　　Moreover，itisworthyofnoticethoughitissoafterthe
　　mannerofthosewho，likeAdamSmith，maketheirstrongpointsin
　　maintainingparadoxicalopinionsthatthisrenownedauthor，in
　　spiteofallhisargumentsagainsttheexistenceofabalanceof
　　trade，maintains，nevertheless，theexistenceofathingwhichhe
　　callsthebalancebetweentheconsumptionandproductionofa
　　nation，which，however，whenbroughttolight，meansnothingelse
　　butouractualbalanceoftrade。Anationwhoseexportsandimports
　　tolerablywellbalanceeachother，mayrestassuredthat，in
　　respectofitsnationalinterchange，itdoesnotconsumemuchmore
　　invaluethanitproduces，whileanationwhichforaseriesof
　　yearsastheUnitedStatesofAmericahavedoneinrecentyears
　　importslargerquantitiesinvalueofforeignmanufacturedgoods
　　thanitexportsinvalueofproductsofitsown，mayrestassured
　　that，inrespecttointernationalinterchange，itconsumes
　　considerablylargerquantitiesinvalueofforeigngoodsthanit
　　producesathome。ForwhatelsedidthecrisesofFrance
　　1786-1789，ofRussia1820-1821，andoftheUnitedStatessince
　　1833，prove？
　　Inconcludingthischapterwemustbepermittedtoputafew
　　questionstothosewhoconsiderthewholedoctrineofthebalance
　　oftradeasamereexplodedfallacy。
　　Howisitthatadecidedlyandcontinuouslydisadvantageous
　　balanceoftradehasalwaysandwithoutexceptionbeenaccompanied
　　inthosecountriestowhosedetrimentitexistedwiththe
　　exceptionofcoloniesbyinternalcommercialcrises，revolutions
　　inprices，financialdifficulties，andgeneralbankruptcies，both
　　inthepublicinstitutionsofcredit，andamongtheindividual
　　merchants，manufacturers，andagriculturists？
　　Howisitthatinthosenationswhichpossessedabalanceof
　　tradedecidedlyintheirfavour，theoppositeappearanceshave
　　alwaysbeenobserved，andthatcommercialcrisesinthecountries
　　withwhichsuchnationswereconnectedcommercially，haveonly
　　affectedsuchnationsdetrimentallyforperiodswhichpassedaway
　　veryquickly？
　　HowisitthatsinceRussiahasproducedforherselfthe
　　greatestpartofthemanufacturedgoodswhichsherequires，the
　　balanceoftradehasbeendecidedlyandlastinglyinherfavour，
　　thatsincethattimenothinghasbeenheardofeconomical
　　convulsionsinRussia，andthatsincethattimetheinternal
　　prosperityofthatempirehasincreasedyearbyyear？
　　HowisitthatintheUnitedStatesofNorthAmericathesame
　　effectshavealwaysresultedfromsimilarcauses？Howisitthatin
　　theUnitedStatesofNorthAmerica，underthelargeimportationof
　　manufacturedgoodswhichfollowedthe'Compromisebill，'the
　　balanceoftradewasforaseriesofyearssodecidedlyadverseto
　　them，andthatthisappearancewasaccompaniedbysuchgreatand
　　continuousconvulsionsintheinternaleconomyofthatnation？
　　Howisitthatwe，atthepresentmoment，seetheUnitedStates
　　sogluttedwithprimitiveproductsofallkindscotton，tobacco，
　　cattle，corn，&c。thatthepricesofthemhavefalleneverywhere
　　one-half，andthatatthesametimethesestatesareunableto
　　balancetheirexportswiththeirimports，tosatisfytheirdebt
　　contractedwithEngland，andtoputtheircreditagainonsound
　　footing？
　　Howisit，ifnobalanceoftradeexists，orifitdoesnot
　　signifywhetheritisinourfavourornot，ifitisamatterof
　　indifferencewhethermuchorlittleofthepreciousmetalsflowsto
　　foreigncountries，thatEnglandinthecaseoffailuresofharvests
　　theonlycasewherethebalanceisadversetoherstrives，with
　　fearandtrembling，toequaliseherexportswithherimports，that
　　shethencarefullyestimateseveryounceofgoldorsilverwhichis
　　importedorexported，thathernationalbankendeavoursmost
　　anxiouslytostoptheexportationofpreciousmetalsandtopromote
　　theirimportation——howisit，weask，ifthebalanceoftradeis
　　an'explodedfallacy，'thatatsuchatimenoEnglishnewspapercan
　　bereadwhereinthis'explodedfallacy'isnottreatedasamatter
　　ofthemostimportantconcerntothenation？
　　Howisitthat，intheUnitedStatesofNorthAmerica，thesame
　　peoplewhobeforetheCompromisebillspokeofthebalanceoftrade
　　asanexplodedfallacy，sincetheCompromisebillcannotcease
　　speakingofthisexplodedfallacyasamatteroftheutmost
　　importancetotheircountry？
　　Howisit，ifthenatureofthingsitselfalwayssufficesto
　　provideeverycountrywithexactlythequantityofpreciousmetals
　　whichitrequires，thattheBankofEnglandtriestoturnthis
　　so-callednatureofthingsinherownfavourbylimitingher
　　creditsandincreasingherratesofdiscount，andthattheAmerican
　　banksareobligedfromtimetotimetosuspendtheircashpayments
　　tilltheimportsoftheUnitedStatesarereducedtoatolerably
　　evenbalancewiththeexports？
　　NOTES：
　　1。WealthofNations，bookIV。chapteriii。
　　Chapter24
　　TheManufacturingPowerandthePrincipleofStabilityand
　　ContinuityofWork
　　Ifweinvestigatetheoriginandprogressofindividual
　　branchesofindustryweshallfindthattheyhaveonlygradually
　　becomepossessedofimprovedmethodsofoperation，machinery
　　buildings，advantagesinproduction，experiences，andskill，andof
　　allthoseknowledgesandconnectionswhichinsuretothemthe
　　profitablepurchaseoftheirrawmaterialsandtheprofitablesale
　　oftheirproducts。Wemayrestassuredthatitisasarule
　　incomparablyeasiertoperfectandextendabusinessalready
　　establishedthantofoundanewone。Weseeeverywhereoldbusiness
　　establishmentsthathavelastedforaseriesofgenerationsworked
　　withgreaterprofitsthannewones。Weobservethatitisthemore
　　difficulttosetanewbusinessgoinginproportionasfewer
　　branchesofindustryofasimilarcharacteralreadyexistina
　　nation；because，inthatcase，masters，foremen，andworkmenmust
　　firstbeeithertrainedupathomeorprocuredfromabroad，and
　　becausetheprofitablenessofthebusinesshasnotbeen
　　sufficientlytestedtogivecapitalistsconfidenceinitssuccess。
　　Ifwecomparetheconditionsofdistinctclassesofindustryinany
　　nationatvariousperiods，weeverywherefind，thatwhenspecial
　　causeshadnotoperatedtoinjurethem，theyhavemaderemarkable
　　progress，notonlyinregardtocheapnessofprices，butalsowith
　　respecttoquantityandquality，fromgenerationtogeneration。On
　　theotherhand，weobservethatinconsequenceofexternal
　　injuriouscauses，suchaswarsanddevastationofterritory，&c。，
　　oroppressivetyrannicalorfanaticalmeasuresofgovernmentand
　　financease。g。therevocationoftheEdictofNantes，whole
　　nationshavebeenthrownbackforcenturies，eitherintheirentire
　　industryorincertainbranchesofit，andhaveinthismannerbeen
　　faroutstrippedbynationsincomparisonwithwhichtheyhad
　　previouslybeenfaradvanced。
　　Onecanseeataglancethat，asinallhumaninstitutionsso
　　alsoinindustry，alawofnatureliesattherootofimportant
　　achievementswhichhasmuchincommonwiththenaturallawofthe
　　divisionoflabourandoftheconfederationoftheproductive
　　forces，whoseprinciple，namely，consistsinthecircumstancethat
　　severalgenerationsfollowingoneanotherhaveequallyunitedtheir
　　forcestowardstheattainmentofoneandthesameobject，andhave
　　participatedinlikemannerintheexertionsneededtoattainit。
　　Itisthesameprinciplewhichinthecasesofhereditary
　　kingdomshasbeenincomparablymorefavourabletothemaintenance
　　andincreaseofthepowerofthenationthantheconstantchanges
　　oftherulingfamiliesinthecaseofelectoralkingdoms。
　　Itispartlythisnaturallawwhichsecurestonationswhohave
　　livedforalongtimepastunderarightlyorderedconstitutional
　　formofgovernment，suchgreatsuccessesinindustry，commerce，and
　　navigation。
　　Onlythroughthisnaturallawcantheeffectoftheinvention
　　ofprintingonhumanprogressbepartiallyexplained。Printing
　　firstrendereditpossibletohanddowntheacquisitionsofhuman
　　knowledgeandexperiencefromthepresenttofuturegenerations
　　moreperfectlyandcompletelythancouldbedonebyoraltradition。
　　Totherecognitionofthisnaturallawisundoubtedlypartly
　　attributablethedivisionofthepeopleintocastes，whichexisted
　　amongthenationsofantiquity，andalsothelawoftheold
　　Egyptians——thatthesonmustcontinuetofollowthetradeor
　　professionofhisfather。Beforetheinventionandgeneral
　　disseminationofprintingtookplace，theseregulationsmayhave
　　appearedtobeindispensableforthemaintenanceandforthe
　　developmentofartsandtrades。
　　Guildsandtradesocietiesalsohavepartlyoriginatedfrom
　　thisconsideration。Forthemaintenanceandbringingtoperfection
　　oftheartsandsciences，andtheirtransferfromonegenerationto
　　another，weareingreatmeasureindebtedtothepriestlycastesof
　　ancientnations，tothemonasteriesanduniversities。
　　Whatpowerandwhatinfluencehavetheordersofpriesthoodand
　　ordersofknights，aswellasthepapalchair，attainedto，bythe
　　factthatforcenturiestheyhaveaspiredtooneandthesameaim，
　　andthateachsuccessivegenerationhasalwayscontinuedtowork
　　wheretheotherhadleftoff。
　　Theimportanceofthisprinciplebecomesstillmoreevidentin
　　respecttomaterialachievements。
　　Individualcities，monasteries，andcorporationshaveerected
　　worksthetotalcostofwhichperhapssurpassedthevalueoftheir
　　wholepropertyatthetime。Theycouldonlyobtainthemeansfor
　　thisbysuccessivegenerationsdevotingtheirsavingstooneand
　　thesamegreatpurpose。
　　LetusconsiderthecanalanddykesystemofHolland；it
　　comprisesthelaboursandsavingsofmanygenerations。Onlytoa
　　seriesofgenerationsisitpossibletocompletesystemsof
　　nationaltransportoracompletesystemoffortificationsand
　　defensiveworks。
　　ThesystemofStatecreditisoneofthefinestcreationsof
　　morerecentstatesmanship，andablessingfornations，inasmuchas
　　itservesasthemeansofdividingamongseveralgenerationsthe
　　costsofthoseachievementsandexertionsofthepresentgeneration
　　whicharecalculatedtobenefitthenationalityforallfuture
　　times，andwhichguaranteetoitcontinuedexistence，growth，
　　greatness，power，andincreaseofthepowersofproduction；it
　　becomesacurseonlyifitservesforuselessnationalexpenditure，
　　andthusnotmerelydoesnotfurthertheprogressoffuture
　　generations，butdeprivesthembeforehandofthemeansof
　　undertakinggreatnationalworks，oralsoiftheburdenofthe
　　paymentofinterestofthenationaldebtisthrownonthe
　　consumptionsoftheworkingclassesinsteadofoncapital。
　　Statedebtsarebillswhichthepresentgenerationdrawson
　　futureones。Thiscantakeplaceeithertothespecialadvantageof
　　thepresentgenerationorthespecialadvantageofthefutureone，
　　ortothecommonadvantageofboth。Inthefirstcaseonlyisthis
　　systemanobjectionableone。Butallcasesinwhichtheobjectin
　　viewisthemaintenanceandpromotionofthegreatnessandwelfare
　　ofthenationality，sofarasthemeansrequiredforthepurpose
　　surpassthepowersofthepresentgeneration，belongtothelast
　　category。
　　Noexpenditureofthepresentgenerationissodecidedlyand
　　speciallyprofitabletofuturegenerationsasthatforthe
　　improvementofthemeansoftransport，especiallybecausesuch
　　undertakingsasarule，besidesincreasingthepowersofproduction
　　offuturegenerations，doalsoinaconstantlyincreasingrationot
　　merelypayinterestonthecostinthecourseoftime，butalso
　　yielddividends。Thepresentgenerationis，therefore，notmerely
　　entitledtothrowontofuturegenerationsthecapitaloutlayof
　　theseworksandfairinterestonitaslongastheydonotyield
　　sufficientincome，butfurtheractsunjustlytowardsitselfandto
　　thetruefundamentalprinciplesofnationaleconomy，ifittakes
　　theburdenorevenanyconsiderablepartofitonitsown
　　shoulders。
　　Ifinourconsiderationofthesubjectofthecontinuityof
　　nationalindustrywereverttothemainbrancheswhichconstitute
　　it，wemayperceive，thatwhilethiscontinuityhasanimportant
　　influenceonagriculture，yetthatinterruptionstoit，inthecase
　　ofthatindustry，aremuchlessdecidedandmuchlessinjurious
　　whentheyoccur，alsothattheirevilconsequencescanbemuchmore
　　easilyandquicklymadegoodthaninthecaseofmanufactures。
　　Howevergreatmaybeanydamageorinterruptiontoagriculture，
　　theactualpersonalrequirementsandconsumptionofthe
　　agriculturist，thegeneraldiffusionoftheskillandknowledge
　　requiredforagriculture，andthesimplicityofitsoperationsand
　　oftheimplementswhichitrequires，sufficetopreventitfrom
　　comingentirelytoanend。
　　Evenafterdevastationsbywaritquicklyraisesitselfup
　　again。Neithertheenemynortheforeigncompetitorcantakeaway
　　themaininstrumentofagriculture，theland；anditneedsthe
　　oppressionsofaseriesofgenerationstoconvertarablefields
　　intouncultivatedwaste，ortodeprivetheinhabitantsofacountry
　　ofthecapabilityofcarryingonagriculture。
　　Onmanufactures，however，theleastandbriefestinterruption
　　hasacripplingeffect；alongeroneisfatal。Themoreartand
　　talentthatanybranchofmanufacturerequires，thelargerthe
　　amountsofcapitalwhichareneedfultocarryiton，themore
　　completelythiscapitalissunkinthespecialbranchofindustry
　　inwhichithasbeeninvested，somuchthemoredetrimentalwillbe
　　theinterruption。Byitmachineryandtoolsarereducedtothe
　　valueofoldironandfire-wood，thebuildingsbecomeruins，the
　　workmenandskilledartificersemigratetootherlandsorseek
　　subsistenceinagriculturalemployment。Thusinashorttimea
　　complexcombinationofproductivepowersandofpropertybecomes
　　lost，whichhadbeencreatedonlybytheexertionsandendeavours
　　ofseveralgenerations。
　　Justasbytheestablishmentandcontinuanceofindustryone
　　branchoftradeoriginates，drawsafterit，supportsandcausesto
　　flourishmanyothers，soistheruinofonebranchofindustry
　　alwaystheforerunneroftheruinofseveralothers，andfinallyof
　　thechieffoundationsofthemanufacturingpowerofthenation。
　　Theconvictionofthegreateffectsproducedbythesteady
　　continuationofindustryandoftheirretrievableinjuriescaused
　　byitsinterruption，andnottheclamourandegotisticaldemandsof
　　manufacturersandtradersforspecialprivileges，hasledtothe
　　ideaofprotectivedutiesfornativeindustry。
　　Incaseswheretheprotectivedutycannothelp，wherethe
　　manufactories，forinstance，sufferfromwantofexporttrade，
　　wheretheGovernmentisunabletoprovideanyremedyforits
　　interruption，weoftenseemanufacturerscontinuingtoproduceat
　　anactualloss。Theywanttoavert，inexpectationofbettertimes，
　　theirrecoverableinjurywhichtheywouldsufferfromastoppageof
　　theirworks。
　　Byfreecompetitionitisoftenhopedtoobligethecompetitor
　　todiscontinueworkwhichhascompelledthemanufactureror
　　merchanttosellhisproductsundertheirlegitimatepriceand
　　oftenatanactualloss。Theobjectisnotmerelytopreventthe
　　interruptionofourownindustry，butalsotoforceothersto
　　discontinuetheirsinthehopelateronofbeingablebybetter
　　pricestorecoupthelosseswhichhavebeensuffered。
　　Inanycasestrivingaftermonopolyformspartofthevery
　　natureofmanufacturingindustry。Thiscircumstancetendsto
　　justifyandnottodiscreditaprotectivepolicy；forthis
　　striving，whenrestrictedinitsoperationtothehomemarket，
　　tendstopromotecheaperpricesandimprovementsintheartof
　　production，andthusincreasesthenationalprosperity；whilethe
　　samething，incaseitpressesfromwithoutwithoverwhelmingforce
　　ontheinternalindustry，willoccasiontheinterruptionofwork
　　anddownfalloftheinternalnationalindustry。
　　Thecircumstancethattherearenolimitstomanufacturing
　　productionespeciallysinceithasbeensoextraordinarilyaided
　　andpromotedbymachineryexceptthelimitsofthecapitalwhich
　　itpossessesanditsmeansofeffectingsales，enablesthat
　　particularnationwhosemanufacturingindustryhascontinuedfora
　　century，whichhasaccumulatedimmensecapitals，extendedits
　　commerceallovertheworld，dominatedthemoneymarketbymeansof
　　largeinstitutionsofcreditwhoseoperationsareabletodepress
　　thepricesoffabricsandtoinducemerchantstoexport，to
　　declareawarofexterminationagainstthemanufacturersofall
　　othercountries。Undersuchcircumstancesitisquiteimpossible
　　thatinothernations，'inthenaturalcourseofthings'asAdam
　　Smithexpresseshimself，merelyinconsequenceoftheirprogress
　　inagriculture，immensemanufacturesandworksshouldbe
　　established，orthatthosemanufactureswhichhaveoriginatedin
　　consequenceofthecommercialinterruptionscausedbywarshouldbe
　　able，'inthenaturalcourseofthings，'tocontinuetomaintain
　　themselves。Thereasonforthisisthesameasthatwhyachildor
　　aboyinwrestlingwithastrongmancanscarcelybevictoriousor
　　evenoffersteadyresistance。Themanufactorieswhichconstitute
　　thecommercialandindustrialsupremacyofEnglandhavea
　　thousandadvantagesoverthenewlybornorhalf-grownmanufactories
　　ofothernations。Theformer，forinstance，canobtainskilledand
　　experiencedworkmeninthegreatestnumberandatthecheapest
　　wages，thebesttechnicalmenandforemen，themostperfectandthe
　　cheapestmachinery，thegreatestbenefitinbuyingandselling
　　advantageously；further，thecheapestmeansoftransport，as
　　respectsrawmaterialsandalsoinrespectoftransportinggoods
　　whensold，moreextendedcreditforthemanufacturerswithbanks
　　andmoneyinstitutionsatthelowestratesofinterest，greater
　　commercialexperience，bettertools，buildings，arrangements，
　　connections，suchascanonlybeacquiredandestablishedinthe
　　courseofgenerations；anenormoushomemarket，and，whatis
　　equallygood，acolonialmarketequallyenormous。Henceunderall
　　circumstancestheEnglishmanufacturerscanfeelcertaintyasto
　　thesaleoflargequantitiesofmanufacturedproductsbyvigorous
　　efforts，andconsequentlypossessaguaranteeforthecontinuance
　　oftheirbusinessandabundantmeanstoselloncreditforyearsto
　　comeinthefuture，ifitisrequiredtoacquirethecontrolofa
　　foreignmarket。Ifweenumerateandconsidertheseadvantagesone
　　afteranother，wemayeasilybeconvincedthatincompetitionwith
　　suchapoweritissimplyfoolishtorestourhopesonthe
　　operationof'thenaturalcourseofthings'underfreecompetition，
　　where，asinourcase，workmenandtechnicalmenhaveinthefirst
　　placeyettobetrained，wherethemanufactureofmachineryand
　　propermeansoftransportaremerelyincourseoferection，where
　　eventhehomemarketisnotsecuredtothemanufacturer——notto
　　mentionanyimportantexportmarket，wherethecreditthatthe
　　manufacturercanobtainisunderthemostfortunatecircumstances
　　limitedtothelowestpoint，wherenomancanbecertainevenfor
　　adaythat，inconsequenceofEnglishcommercialcrisesandbank
　　operations，massesofforeigngoodsmaynotbethrownonthehome
　　marketatpriceswhichscarcelyrecoupthevalueoftheraw
　　materialsofwhichtheyaremade，andwhichbringtoastandfor
　　yearstheprogressofourownmanufacturingindustries。
　　Itwouldbeinvainforsuchnationstoresignthemselvestoa
　　stateofperpetualsubordinationtotheEnglishmanufacturing
　　supremacy，andcontentthemselveswiththemodestdeterminationto
　　supplyitwithwhatitmaynotbeabletoproduceforitselforto
　　procureelsewhere。Evenbythissubordinationtheywillfindno
　　permanentbenefit。WhatbenefitisittothepeopleoftheUnited
　　States，forinstance，thattheysacrificethewelfareoftheir
　　finestandmostcultivatedstates，thestatesoffreelabour，and
　　perhapstheirentirefuturenationalgreatness，fortheadvantage
　　ofsupplyingEnglandwithrawcotton？Dotheytherebyrestrictthe
　　endeavoursofEnglandtoprocurethismaterialfromotherdistricts
　　oftheworld？InvainwouldtheGermansbecontenttoobtaintheir
　　requirementsofmanufacturedgoodsfromEnglandinexchangefor
　　theirfinesheep'swool；theywouldbysuchapolicyhardlyprevent
　　AustraliafromfloodingallEuropewithfinewoolinthecourseof
　　thenexttwentyyears。
　　Suchaconditionofdependenceappearsstillmoredeplorable
　　whenweconsiderthatsuchnationsloseintimesofwartheirmeans
　　ofsellingtheiragriculturalproducts，andtherebythemeansof
　　purchasingthemanufacturingproductsoftheforeigner。Atsuch
　　timesalleconomicalconsiderationsandsystemsarethrustintothe
　　background。Itistheprincipleofself-maintenance，of
　　self-defence，whichcounselsthenationstoworkuptheir
　　agriculturalproductsthemselves，andtodispensewiththe
　　manufacturedgoodsoftheenemy。Whateverlossesmaybeinvolvedin
　　adoptingsuchawar-prohibitivesystem，cannotbetakeninto
　　accountduringsuchastateofthings。Howevergreattheexertions
　　andthesacrificesmayhavebeenbywhichtheagriculturalnation
　　duringthetimeofwarhascalledintoexistencemanufacturesand
　　works，thecompetitionofthemanufacturingsupremacywhichsetsin
　　ontherecurrenceofpeacewillagaindestroyallthesecreations
　　ofthetimesofnecessity。Inshort，itisaneternalalternation
　　oferectinganddestroying，ofprosperityandcalamitywhichthose
　　nationshavetoundergowhodonotstrivetoinsure，through
　　realisationoftheirnationaldivisionoflabourandthroughthe
　　confederationoftheirownpowersofproduction，thebenefitsof
　　thecontinuationoftheirownindustriesfromgenerationto
　　generation。
　　Chapter25
　　TheManufacturingPowerandtheInducementtoProductionand
　　Consumption
　　Insocietymanisnotmerelyproductiveowingtothe
　　circumstancethathedirectlybringsforthproductsorcreates
　　powersofproduction，buthealsobecomesproductivebycreating
　　inducementstoproductionandtoconsumption，ortotheformation
　　ofproductivepowers。
　　Theartistbyhisworksactsinthefirstplaceonthe
　　ennoblingandrefinementofthehumanspiritandontheproductive
　　powerofsociety；butinasmuchastheenjoymentofartpresupposes
　　thepossessionofthosematerialmeanswherebyitmustbe
　　purchased，theartistalsooffersinducementstomaterial
　　productionandtothrift。
　　Booksandnewspapersactonthementalandmaterialproduction
　　bygivinginformation；buttheiracquisitioncostsmoney，andso
　　fartheenjoymentwhichtheyaffordisalsoaninducementto
　　materialproduction。
　　Theeducationofyouthennoblessociety；butwhatgreat
　　exertionsdoparentsmaketoobtainthemeansofgivingtheir
　　childrenagoodeducation！
　　Whatimmenseperformancesinbothmentalandmaterial
　　productionariseoutoftheendeavourtomoveinbettersociety！
　　Wecanliveaswellinahousemadeofboardsasinavilla，we
　　canprotectourselvesforafewflorinsagainstrainandcoldas
　　wellasbymeansofthefinestandmostelegantclothing。Ornaments
　　andutensilsofgoldandsilveraddnomoretocomfortthanthose
　　ofironandtin；butthedistinctionconnectedwiththepossession
　　oftheformeractsasaninducementtoexertionsofthebodyand
　　themind，andtoorderandthrift；andtosuchinducementssociety
　　owesalargepartofitsproductiveness。Eventhemanlivingonhis
　　privatepropertywhomerelyoccupieshimselfwithpreserving，
　　increasing，andconsuminghisincome，actsinmanifoldwayson
　　mentalandmaterialproduction：firstly，bysupportingthroughhis
　　consumptionartandscience，andartistictrades；next，by
　　discharging，asitwere，thefunctionofapreserverandaugmenter
　　ofthematerialcapitalofsociety；finally，byincitingthrough
　　hisdisplayallotherclassesofsocietytoemulation。Asawhole
　　schoolisencouragedtoexertionsbytheofferofprizes，although
　　onlyafewbecomewinnersoftheprincipalprizes，sodoesthe
　　possessionoflargeproperty，andtheappearanceanddisplay
　　connectedwithit，actoncivilsociety。Thisactionofcourse
　　ceaseswhenthegreatpropertyisthefruitofusurpation，of
　　extortion，orfraud，orwherethepossessionofitandthe
　　enjoymentofitsfruitscannotbeopenlydisplayed。
　　Manufacturingproductionyieldseitherproductiveinstruments
　　orthemeansofsatisfyingthenecessitiesoflifeandthemeansof
　　display。Thelasttwoadvantagesarefrequentlycombined。The
　　variousranksofsocietyareeverywheredistinguishedbythemanner
　　inwhichandwheretheylive，andhowtheyarefurnishedand
　　clothed，bythecostlinessoftheirequipagesandthequality，
　　number，andexternalappearanceoftheirservants。Wherethe
　　commercialproductionisonalowscale，thisdistinctionisbut
　　slight，i。e。almostallpeoplelivebadlyandarepoorlyclothed，
　　emulationisnowhereobservable。Itoriginatesandincreases
　　accordingtotheratioinwhichindustriesflourish。Inflourishing
　　manufacturingcountriesalmosteveryonelivesanddresseswell，
　　althoughinthequalityofmanufacturedgoodswhichareconsumed
　　themostmanifolddegreesofdifferencetakeplace。Noonewho
　　feelsthathehasanypowerinhimtoworkiswillingtoappear
　　outwardlyneedy。Manufacturingindustry，therefore，furthers
　　productionbythecommunitybymeansofinducementswhich
　　agriculture，withitsmeandomesticmanufacture，itsproductionsof
　　rawmaterialsandprovisions，cannotoffer。
　　Thereisofcourseanimportantdifferencebetweenvarious
　　modesofliving，andeveryonefeelssomeinducementtoeatand
　　drinkwell；butwedonotdineinpublic；andaGermanproverbsays
　　strikingly，'MansiehtmiraufdenKragen，nichtaufdenMagen'
　　Onelooksatmyshirtcollar，notatmystomach。Ifweare
　　accustomedfromyouthtoroughandsimplefare，weseldomwishfor
　　better。Theconsumptionofprovisionsalsoisrestrictedtovery
　　narrowlimitswhereitisconfinedtoarticlesproducedinthe
　　immediateneighbourhood。Theselimitsareextendedincountriesof
　　temperateclimate，inthefirstinstance，byprocuringtheproducts
　　oftropicalclimates。Butasrespectsthequantityandthequality
　　oftheseproducts，intheenjoymentofwhichthewholepopulation
　　ofacountrycanparticipate，theycanonlybeprocuredaswehave
　　showninaformerchapterbymeansofforeigncommercein
　　manufacturedgoods。
　　Colonialproducts，sofarastheydonotconsistofraw
　　materialsformanufacturingpurposes，evidentlyactmoreas
　　stimulantsthannecessarymeansofsubsistence。Noonewilldeny
　　thatbarleycoffeewithoutsugarisasnutritiousasmochacoffee
　　withsugar；andadmittingalsothattheseproductscontainsome
　　nutritiousmatter，theirvalueinthisrespectisneverthelessso
　　unimportantthattheycanscarcelybeconsideredassubstitutesfor
　　nativeprovisions。Withregardtospicesandtobacco，theyare
　　certainlymerestimulants，i。e。theychieflyproduceauseful
　　effectonsocietyonlysofarastheyaugmenttheenjoymentsofthe
　　masses，andincitethemtomentalandbodilylabour。
　　Inmanycountriesveryerroneousnotionsprevailamongthose
　　wholivebysalariesorrents，respectingwhattheyareaccustomed
　　tocalltheluxurioushabitsofthelowerclasses；suchpersonsare
　　shockedtoobservethatlabourersdrinkcoffeewithsugar，and
　　regretthetimeswhentheyweresatisfiedwithgruel；theydeplore
　　thatthepeasanthasexchangedhispoorclothingofcoarsehomespun
　　forwoollencloth；theyexpressfearsthatthemaid-servantwill
　　soonnotbedistinguishablefromtheladyofthehouse；theypraise
　　thelegalrestrictionsondressofpreviouscenturies。Butifwe
　　comparetheresultofthelabouroftheworkmanincountrieswhere
　　heiscladandnourishedlikethewell-to-domanwiththeresultof
　　hislabourwherehehastobesatisfiedwiththecoarsestfoodand
　　clothing，weshallfindthattheincreaseofhiscomfortinthe
　　formercasehasbeenattainednotattheexpenseofthegeneral
　　welfare，buttotheadvantageoftheproductivepowersofthe
　　community。Theday'sworkoftheworkmanisdoubleorthreetimes
　　greaterintheformercasethaninthelatter。Attemptstoregulate
　　dressandrestrictionsonluxuryhavedestroyedwholesomeemulation
　　inthelargemassesofsociety，andhavemerelytendedtothe
　　increaseofmentalandbodilyidleness。
　　Inanycaseproductsmustbecreatedbeforetheycanbe
　　consumed，andthusproductionmustnecessarilygenerallyprecede
　　consumption。Inpopularandnationalpractice，however，consumption
　　frequentlyprecedesproduction。Manufacturingnations，supportedby
　　largecapitalandlessrestrictedintheirproductionthanmere
　　agriculturalnations，make，asarule，advancestothelatteron
　　theyieldoffuturecrops；thelatterthusconsumebeforethey
　　produce——theyproducelateronbecausetheyhavepreviously
　　consumed。Thesamethingmanifestsitselfinamuchgreaterdegree
　　intherelationbetweentownandcountry：thecloserthe
　　manufactureristotheagriculturist，themorewilltheformer
　　offertothelatterbothaninducementtoconsumeandmeansfor
　　consumption，themorealsowillthelatterfeelhimselfstimulated
　　togreaterproduction。
　　Amongthemostpotentstimulantsarethoseaffordedbythe
　　civilandpoliticalinstitutionsofthecountry。Whereitisnot
　　possibletoraiseoneselfbyhonestexertionsandbyprosperity
　　fromoneclassofsocietytoanother，fromthelowesttothe
　　highest；wherethepossessornecessarilyhesitatestoshowhis
　　propertypubliclyortoenjoythefruitsofitbecauseitwould
　　exposehispropertytorisk，orlestheshouldbeaccusedof
　　arroganceorimpropriety；wherepersonsengagedintradeare
　　excludedfrompublichonour，fromtakingpartinadministration，
　　legislation，andjuries；wheredistinguishedachievementsin
　　agriculture，industry，andcommercedonotleadalsotopublic
　　esteemandtosocialandcivildistinction，therethemost
　　importantmotivesforconsumptionaswellasforproductionare
　　wanting。
　　Everylaw，everypublicregulation，hasastrengtheningor
　　weakeningeffectonproductionoronconsumptionoronthe
　　productiveforces。
　　Thegrantingofpatentprivilegesoffersaprizetoinventive
　　minds。Thehopeofobtainingtheprizearousesthementalpowers，
　　andgivesthemadirectiontowardsindustrialimprovements。It
　　bringshonourtotheinventivemindinsociety，androotsoutthe
　　prejudiceforoldcustomsandmodesofoperationsoinjuriousamong
　　uneducatednations。Itprovidesthemanwhomerelypossessesmental
　　facultiesfornewinventionswiththematerialmeanswhichhe
　　requires，inasmuchascapitalistsarethusincitedtosupportthe
　　inventor，bybeingassuredofparticipationintheanticipated
　　profits。
　　Protectivedutiesactasstimulantsonallthosebranchesof
　　internalindustrytheproduceofwhichforeigncountriescan
　　providebetterthanthehomecountrybutoftheproductionofwhich
　　thehomecountryiscapable。Theyguaranteearewardtothemanof
　　enterpriseandtotheworkmanforacquiringnewknowledgeand
　　skill，andoffertotheinlandandforeigncapitalistmeansfor
　　investinghiscapitalforadefiniteandcertaintimeina
　　speciallyremunerativemanner。
　　Chapter26
　　CustomsDutiesasaChiefMeansofEstablishingandProtectingthe
　　internalManufacturingPower
　　Itisnotpartofourplantotreatofthosemeansofpromoting
　　internalindustrywhoseefficacyandapplicabilityarenowhere
　　calledinquestion。Tothesebelonge。g。educationalestablishments
　　especiallytechnicalschools，industrialexhibitions，offersof
　　prizes，transportimprovements，patentlaws，&c。；inshort，all
　　thoselawsandinstitutionsbymeansofwhichindustryis
　　furthered，andinternalandexternalcommercefacilitatedand
　　regulated。Wehaveheremerelytospeakoftheinstitutionof
　　customsdutiesasameansforthedevelopmentofindustry。
　　Accordingtooursystem，prohibitionsof，ordutieson，exports
　　canonlybethoughtofasexceptionalthings；theimportsof
　　naturalproductsmusteverywherebesubjecttorevenuedutiesonly，
　　andnevertodutiesintendedtoprotectnativeagricultural
　　production。Inmanufacturingstates，articlesofluxuryfromwarm
　　climatesarechieflysubjecttodutiesforrevenue，butnotthe
　　commonnecessariesoflife，ase。g。cornorfatcattle；butthe
　　countriesofwarmerclimateorcountriesofsmallerpopulationor
　　limitedterritory，orcountriesnotyetsufficientlypopulous，or
　　suchasarestillfarbehindincivilisationandintheirsocial
　　andpoliticalinstitutions，arethosewhichshouldonlyimposemere
　　revenuedutiesonmanufacturedgoods。
　　Revenuedutiesofeverykind，however，shouldeverywherebeso
　　moderateasnotessentiallytorestrictimportationand
　　consumption；because，otherwise，notonlywouldtheinternal
　　productivepowerbeweakened，buttheobjectofraisingrevenuebe
　　defeated。
　　Measuresofprotectionarejustifiableonlyforthepurposeof
　　furtheringandprotectingtheinternalmanufacturingpower，and
　　onlyinthecaseofnationswhichthroughanextensiveandcompact
　　territory，largepopulation，possessionofnaturalresources，far
　　advancedagriculture，ahighdegreeofcivilisationandpolitical
　　development，arequalifiedtomaintainanequalrankwiththe
　　principalagriculturalmanufacturingcommercialnations，withthe
　　greatestnavalandmilitarypowers。
　　Protectioncanbeafforded，eitherbytheprohibitionof
　　certainmanufacturedarticles，orbyratesofdutywhichamount
　　wholly，oratleastpartly，toprohibition，orbymoderateimport
　　duties。Noneofthesekindsofprotectionareinvariablybeneficial
　　orinvariablyobjectionable；anditdependsonthespecial
　　circumstancesofthenationandontheconditionofitsindustry
　　whichoftheseistherightonetobeappliedtoit。
　　Warexercisesagreatinfluenceontheselectionoftheprecise
　　systemofprotection，inasmuchasiteffectsacompulsory
　　prohibitivesystem。Intimeofwar，exchangebetweenthe
　　belligerentpartiesceases，andeverynationmustendeavour，
　　withoutregardtoitseconomicalconditions，tobesufficientto
　　itself。Hence，ontheonehand，inthelessadvancedmanufacturing
　　nationscommercialindustry，ontheotherhand，inthemost
　　advancedmanufacturingnationagriculturalproduction，becomes
　　stimulatedinanextraordinarymanner，indeedtosuchadegreethat
　　itappearsadvisabletothelessadvancedmanufacturingnation
　　especiallyifwarhascontinuedforseveralyearstoallowthe
　　exclusionwhichwarhasoccasionedofthosemanufacturedarticles
　　inwhichitcannotyetfreelycompetewiththemostadvanced
　　manufacturingnation，tocontinueforsometimeduringpeace。
　　FranceandGermanywereinthisconditionafterthegeneral
　　peace。Ifin1815FrancehadallowedEnglishcompetition，as
　　Germany，Russia，andNorthAmericadid，shewouldalsohave
　　experiencedthesamefate；thegreatestpartofhermanufactories
　　whichhadsprungupduringthewarwouldhavecometogrief；the
　　progresswhichhassincebeenmadeinallbranchesofmanufacture，
　　inimprovingtheinternalmeansoftransport，inforeigncommerce，
　　insteamriverandseanavigation，intheincreaseinthevalueof
　　landwhich，bytheway，hasdoubledinvalueduringthistimein
　　France，intheaugmentationofpopulationandoftheState's
　　revenues，couldnothavebeenhopedfor。Themanufactoriesof
　　Franceatthattimewerestillintheirchildhood；thecountry
　　possessedbutfewcanals；themineshadbeenbutlittleworked；
　　politicalconvulsionsandwarshadnotyetpermittedconsiderable
　　capitaltoaccumulate，sufficienttechnicalcultivationtoexist，
　　asufficientnumberofreallyqualifiedworkmenoranindustrial
　　andenterprisingspirittohavebeencalledintoexistence；the
　　mindofthenationwasstillturnedmoretowardswarthantowards
　　theartsofpeace；thesmallcapitalwhichastateofwarpermitted
　　toaccumulate，stillflowedprincipallyintoagriculture，whichhad
　　declinedverymuchindeed。Then，forthefirsttime，couldFrance
　　perceivewhatprogressEnglandhadmadeduringthewar；then，for
　　thefirsttime，wasitpossibleforFrancetoimportfromEngland
　　machinery，artificers，workmen，capital，andthespiritof
　　enterprise；then，tosecurethehomemarketexclusivelyforthe
　　benefitofhomeindustry，demandedtheexertionofherbestpowers，
　　andtheutilisationofallhernaturalresources。Theeffectsof
　　thisprotectivepolicyareveryevident；nothingbutblind
　　cosmopolitanismcanignorethem，ormaintainthatFrancewould
　　have，underapolicyoffreecompetitionwithothernations，made
　　greaterprogress。DoesnottheexperienceofGermany，theUnited
　　StatesofAmerica，andRussia，conclusivelyprovethecontrary？
　　Ifwemaintainthattheprohibitivesystemhasbeenusefulto
　　Francesince1815，wedonotbythatcontentionwishtodefend
　　eitherhermistakesorherexcessofprotection，northeutilityor
　　necessityofhercontinuedmaintenanceofthatexcessiveprotective
　　policy。ItwasanerrorforFrancetorestricttheimportationof
　　rawmaterialsandagriculturalproductspig-iron，coal，wool，
　　corn，cattlebyimportduties；itwouldbeafurthererrorif
　　France，afterhermanufacturingpowerhasbecomesufficiently
　　strongandestablished，werenotwillingtorevertgraduallytoa
　　moderatesystemofprotection，andbypermittingalimitedamount
　　ofcompetitionincitehermanufacturerstoemulation。
　　Inregardtoprotectivedutiesitisespeciallyimportantto
　　discriminatebetweenthecaseofanationwhichcontemplates
　　passingfromapolicyoffreecompetitiontooneofprotection，and
　　thatofanationwhichproposestoexchangeapolicyofprohibition
　　foroneofmoderateprotection；intheformercasetheduties
　　imposedatfirstmustbelow，andbegraduallyincreased，inthe
　　lattertheymustbehighatfirstandbegraduallydiminished。
　　Anationwhichhasbeenformerlyinsufficientlyprotectedby
　　customsduties，butwhichfeelsitselfcalledupontomakegreater
　　progressinmanufactures，mustfirstofallendeavourtodevelop
　　thosemanufactureswhichproducearticlesofgeneralconsumption。
　　Inthefirstplacethetotalvalueofsuchindustrialproductsis
　　incomparablygreaterthanthetotalvalueofthemuchmore
　　expensivefabricsofluxury。Theformerclassofmanufactures，
　　therefore，bringsintomotionlargemassesofnatural，mental，and
　　personalproductivepowers，andgives——bythefactthatit
　　requireslargecapital——inducementsforconsiderablesavingof
　　capital，andforbringingovertoitsaidforeigncapitaland
　　powersofallkinds。Thedevelopmentofthesebranchesof
　　manufacturethustendspowerfullytopromotetheincreaseof
　　population，theprosperityofhomeagriculture，andalsoespecially
　　theincreaseofthetradewithforeigncountries，inasmuchasless
　　cultivatedcountrieschieflyrequiremanufacturedgoodsofcommon
　　use，andthecountriesoftemperateclimatesareprincipally
　　enabledbytheproductionofthesearticlestocarryondirect
　　interchangewiththecountriesoftropicalclimates。Acountrye。g。
　　whichtradehastoimportcottonyarnsandcottongoodscannot
　　carryondirectwithEgypt，Louisiana，orBrazil，becauseitcannot
　　supplythosecountrieswiththecottongoodswhichtheyrequire，
　　andcannottakefromthemtheirrawcotton。Furthermore，these
　　articles，onaccountofthemagnitudeoftheirtotalvalue，serve
　　especiallytoequalisetheexportsofthenationtolerablywell
　　withitsimports，andalwaystoretaininthenationtheamountof
　　circulatingmediumwhichitrequires，ortoprovideitwiththe
　　same。Thusitisbytheprosperityandpreservationofthese
　　importantbranchesofindustrythattheindustrialindependenceof
　　thenationisgainedandmaintained，forthedisturbanceoftrade
　　resultingfromwarsisoflittleimportanceifitmerelyhinders
　　thepurchaseofexpensivearticlesofluxury，but，ontheother
　　hand，italwaysoccasionsgreatcalamitiesifitisattendedby
　　scarcityandriseinpriceofcommonmanufacturedgoods，andbythe
　　interruptionofapreviouslyconsiderablesaleofagricultural
　　products。Finally，theevasionofcustomsdutiesbysmugglingand
　　falsedeclarationsofvalueismuchlesstobefearedinthecase
　　ofthesearticles，andcanbemuchmoreeasilypreventedthanin
　　thecaseofcostlyfabricsofluxury。
　　Manufacturesandmanufactoriesarealwaysplantsofslow
　　growth，andeveryprotectivedutywhichsuddenlybreaksoff
　　formerlyexistingcommercialconnectionsmustbedetrimentaltothe
　　nationforwhosebenefititisprofessedlyintroduced。Suchduties
　　oughtonlytobeincreasedintheratioinwhichcapital，technical
　　abilities，andthespiritofenterpriseareincreasinginthe
　　nationorarebeingattractedtoitfromabroad，intheratioin
　　whichthenationisinaconditiontoutiliseforitselfits
　　surplusofrawmaterialsandnaturalproductswhichithad
　　previouslyexported。Itis，however，ofspecialimportancethatthe
　　scalebywhichtheimportdutiesareincreasedshouldbedetermined
　　beforehand，sothatanassuredremunerationcanbeofferedtothe
　　capitalists，artificers，andworkmen，whoarefoundinthenation
　　orwhocanbeattractedtoitfromabroad。Itisindispensableto
　　maintainthesescalesofdutyinviolably，andnottodiminishthem
　　beforetheappointedtime，becausetheveryfearofanysuchbreach
　　ofpromisewouldalreadydestroyforthemostparttheeffectof
　　thatassuranceofremuneration。
　　Towhatextentimportdutiesshouldbeincreasedinthecaseof
　　achangefromfreecompetitiontotheprotectivesystem，andhow
　　muchtheyoughttobediminishedinthecaseofachangefroma
　　systemofprohibitiontoamoderatesystemofprotection，cannotbe
　　determinedtheoretically：thatdependsonthespecialconditionsas
　　wellasontherelativeconditionsinwhichthelessadvanced
　　nationisplacedinrelationtothemoreadvancedones。TheUnited
　　StatesofNorthAmericae。g。havetotakeintospecial
　　considerationtheirexportsofrawcottontoEngland，andof
　　agriculturalandmaritimeproductstotheEnglishcolonies，also
　　thehighrateofwagesexistingintheUnitedStates；wherebythey
　　againprofitbythefactthattheycandependmorethananyother
　　nationonattractingtothemselvesEnglishcapital，artificers，men
　　ofenterprise，andworkmen。
　　Itmayingeneralbeassumedthatwhereanytechnicalindustry
　　cannotbeestablishedbymeansofanoriginalprotectionofforty
　　tosixtypercentandcannotcontinuetomaintainitselfundera
　　continuedprotectionoftwentytothirtypercentthefundamental
　　conditionsofmanufacturingpowerarelacking。
　　Thecausesofsuchincapacitycanberemovedmoreorless
　　readily；totheclassmorereadilyremovablebelongwantof
　　internalmeansoftransport，wantoftechnicalknowledge，of
　　experiencedworkmen，andofthespiritofindustrialenterprise；to
　　theclasswhichitismoredifficulttoremovebelongthelackof
　　industriousdisposition，civilisation，education，morality，and
　　loveofjusticeonthepartofthepeople；wantofasoundand
　　vigoroussystemofagriculture，andhenceofmaterialcapital；but
　　especiallydefectivepoliticalinstitutions，andwantofcivil
　　libertyandofsecurityofjustice；andfinally，wantof
　　compactnessofterritory，wherebyitisrenderedimpossibletoput
　　downcontrabandtrade。
　　Thoseindustrieswhichmerelyproduceexpensivearticlesof
　　luxuryrequiretheleastconsiderationandtheleastamountof
　　protection；firstly，becausetheirproductionrequiresandassumes
　　theexistenceofahighdegreeoftechnicalattainmentandskill；
　　secondlybecausetheirtotalvalueisinconsiderableinproportion
　　tothatofthewholenationalproduction，andtheimportsofthem
　　canbereadilypaidforbymeansofagriculturalproductsandraw
　　materials，orwithmanufacturedproductsofcommonuse；further，
　　becausetheinterruptionoftheirimportationoccasionsno
　　importantinconvenienceintimeofwar；lastly，becausehigh
　　protectivedutiesonthesearticlescanbemostreadilyevadedby
　　smuggling。
　　Nationswhichhavenotyetmadeconsiderableadvancesin
　　technicalartandinthemanufactureofmachineryshouldallowall
　　complicatedmachinerytobeimportedfreeofduty，oratleastonly
　　levyasmalldutyuponthem，untiltheythemselvesareina
　　Positiontoproducethemasreadilyasthemostadvancednation。
　　Machinemanufactoriesareinacertainsensethemanufacturersof
　　manufactories，andeverytaxontheimportationofforeign
　　machineryisarestrictionontheinternalmanufacturingpower。
　　Sinceitis，however，ofthegreatestimportance，becauseofits
　　greatinfluenceonthewholemanufacturingpower，thatthenation
　　shouldnotbedependentonthechancesandchangesofwarin
　　respectofitsmachinery，thisparticularbranchofmanufacturehas
　　veryspecialclaimsforthedirectsupportoftheStateincaseit
　　shouldnotbeableundermoderateimportdutiestomeet
　　competition。TheStateshouldatleastencourageanddirectly
　　supportitshomemanufactoriesofmachinery，sofarastheir
　　maintenanceanddevelopmentmaybenecessarytoprovideatthe
　　commencementofatimeofwarthemostnecessaryrequirements，and
　　underalongerinterruptionbywartoserveaspatternsforthe
　　erectionofnewmachinefactories。
　　Drawbackscanaccordingtooursystemonlybeentertainedin
　　caseswherehalf-manufacturedgoodswhicharestillimportedfrom
　　abroad，asforinstancecottonyarn，mustbesubjectedtoa
　　considerableprotectivedutyinordertoenablethecountry
　　graduallytoproducethemitself。
　　Bountiesareobjectionableaspermanentmeasurestorenderthe
　　exportsandthecompetitionofthenativemanufactoriespossible
　　withthemanufactoriesoffurtheradvancednationsinneutral
　　markets；buttheyarestillmoreobjectionableasthemeansof
　　gettingpossessionoftheinlandmarketsformanufacturedgoodsof
　　nationswhichhavethemselvesalreadymadeprogressin
　　manufactures。Yettherearecaseswheretheyaretobejustifiedas
　　temporarymeansofencouragement，namely，wheretheslumbering
　　spiritofenterpriseofanationmerelyrequiresstimulusand
　　assistanceinthefirstperiodofitsrevival，inordertoevokein
　　itapowerfulandlastingproductionandanexporttradeto
　　countrieswhichthemselvesdonotpossessflourishingmanufactures。
　　ButeveninthesecasesitoughttobeconsideredwhethertheState
　　wouldnotdobetterbymakingadvancesfreeofinterestand
　　grantingspecialprivilegestoindividualmenofenterprise，or
　　whetheritwouldnotbestillmoretothepurposetopromotethe
　　formationofcompaniestocarryintoeffectsuchprimary
　　experimentaladventures，toadvancetosuchcompaniesaportionof
　　theirrequisitesharecapitaloutoftheStatetreasury，andto
　　allowtotheprivatepersonstakingsharesinthemapreferential
　　interestontheirinvestedcapital。Asinstancesofthecases
　　referredto，wemaymentionexperimentalundertakingsintradeand
　　navigationtodistantcountries，towhichthecommerceofprivate
　　personshasnotyetbeenextended；theestablishmentoflinesof
　　steamerstodistantcountries；thefoundingofnewcolonies，&c。
　　Chapter27
　　TheCustomsSystemandthePopularSchool
　　Thepopularschooldoesnotdiscriminateinrespectofthe
　　operationofprotectivedutiesbetweennaturalorprimitive
　　productsandmanufacturedproducts。Itpervertsthefactthatsuch
　　dutiesalwaysoperateinjuriouslyontheproductionofprimitiveor
　　naturalproducts，intothefalseconclusionthattheyexercisean
　　equallydetrimentalinfluenceontheproductionofmanufactured
　　goods。
　　Theschoolrecognisesnodistinctioninreferencetothe
　　establishmentofmanufacturingindustryinaStatebetweenthose
　　nationswhicharenotadaptedforsuchindustryandthosewhich，
　　owingtothenatureoftheirterritory，toperfectlydeveloped
　　agriculture，totheircivilisation，andtotheirjustclaimsfor
　　guaranteesfortheirfutureprosperityfortheirpermanence，and
　　fortheirpower，areclearlyqualified，toestablishsuchan
　　industryforthemselves。
　　Theschoolfailstoperceivethatunderasystemofperfectly
　　freecompetitionwithmoreadvancedmanufacturingnations，anation
　　whichislessadvancedthanthose，althoughwellfittedfor
　　manufacturing，canneverattaintoaperfectlydeveloped
　　manufacturingpowerofitsown，nortoperfectnational
　　independence，withoutprotectiveduties。
　　Itdoesnottakeintoaccounttheinfluenceofwaronthe
　　necessityforaprotectivesystem；especiallyitdoesnotperceive
　　thatwareffectsacompulsoryprohibitivesystem，andthatthe
　　prohibitivesystemofthecustom-houseisbutanecessary
　　continuationofthatprohibitivesystemwhichwarhasbrought
　　about。
　　Itseekstoadducethebenefitswhichresultfromfreeinternal
　　tradeasaproofthatnationscanonlyattaintothehighestdegree
　　ofprosperityandpowerbyabsolutefreedomininternationaltrade；
　　whereashistoryeverywhereprovesthecontrary。
　　Itmaintainsthatprotectivemeasuresaffordamonopolyto
　　inlandmanufacturers，andthustendtoinduceindolence；while，
　　nevertheless，allthetimeinternalcompetitionamplysufficesas
　　astimulustoemulationamongmanufacturersandtraders。
　　Itwouldhaveusbelievethatprotectivedutiesonmanufactured
　　goodsbenefitmanufacturersattheexpenseofagriculturists；
　　whereasitcanbeprovedthatenormousbenefitsaccruetohome
　　agriculturefromtheexistenceofahomemanufacturingpower，
　　comparedtowhichthesacrificeswhichtheformerhastomaketo
　　theprotectivesystemareinconsiderable。
　　Asamainpointagainstprotectiveduties，thepopularschool
　　adducestheexpensesofthecustom-housesystemandtheevils
　　causedbycontrabandtrade。Theseevilscannotbedenied；butcan
　　theybetakenseriouslyintoaccountincomparisonofmeasures
　　whichexercisesuchenormousinfluenceontheexistence，thepower，
　　andtheprosperityofthenation？Cantheevilsofstandingarmies
　　andwarsconstituteanadequatemotiveforthenationtoneglect
　　meansofdefence？Ifitismaintainedthatprotectivedutieswhich
　　farexceedthelimitwhichoffersanassuredremunerationto
　　smuggling，servemerelytofavourcontrabandtrade，butnotto
　　benefithomemanufactures，thatcanapplyonlytoill-regulated
　　customsestablishments，tocountriesofsmallextentandirregular
　　frontiers，totheconsumptionwhichtakesplaceonthefrontiers，
　　andonlytohighdutiesonarticlesofluxuryofnogreataggregate
　　bulk。
　　butexperienceeverywhereteachesusthatwithwell-ordered
　　customsestablishments，andwithwiselydevisedtariffs，the
　　objectsofprotectivedutiesinlargeandcompactstatescannotbe
　　materiallyimpededbycontrabandtrade。
　　Sofarasregardsthemereexpensesofthecustomssystem，a
　　largeportionofthesewould，ifitwereabolished，havetobe
　　incurredinthecollectionofrevenueduties；andthatrevenue
　　dutiescanbedispensedwithbygreatnations，eventheschool
　　itselfdoesnotmaintain。
　　Moreover，theschoolitselfdoesnotcondemnallprotective
　　duties。