powerful, nations valiant, and the most effeminate people that cannot fight for themselves, if they have but money, and can hire other people to fight for them, become as formidable as any of their neighbors.

Seeing trade then is the fund of wealth and power, we cannot wonder that we see the wisest princes and states anxious and concerned for the increase of the commerce and trade of their subjects, and of the growth of the country, anxious to propagate the sale of such goods as are the manufacture of their own people; especially such as keep the money of their dominions at home, and on the contrary, for prohibiting the exportation from abroad, of such things as are the products of other countries, and of the labor of other people, as which carry money back in return.

Nor can we wonder that we see such princes and states endeavoring to set up such manufactures in their own countries, which they see are successfully and profitably carried on by their neighbors, and to endeavor to procure the materials for setting up those manufactures by all just and profitable methods from other countries.

146. The Ten Commandments of National Commerce13 I. Never lose sight of the interests of your compatriots or of the fatherland.

2. Do not forget that when you buy a foreign product, no matter if it is only a cent's worth, you diminish the fatherland's wealth by so much.

3. Your money should profit only German merchants and workmen.

4. Do not profane German soil, a German house, or a German workshop by using foreign machines and tools.

5. Never allow to be served at your table foreign fruits and meat, thus wronging German growers, and, moreover, compromising your health because foreign meats are not inspected by German sanitary police.

6. Write on German paper with a German pen and dry the ink with German blotters.

7. You should be clothed only with German goods and should wear only German hats.

8. German flour, German fruits, and German beer alone make German strength.

9. If you do not like the German malted coffee, drink coffee from the German colonies. If you prefer chocolates or cocoa for

13 Adapted from a circular widely circulated in Germany in 1910.

the children, have a care that the chocolate and cocoa are of exclusively German production.

IO. Do not let foreign boasters divert you from these sage precepts. Be convinced, whatever you may hear, that the best products, which are alone worthy of a German citizen, are German products.

147. The Test of Faith1

BY ROSWELL A. BENEDICT

Q. What is Protection?

A. It is a principle. It holds that home producers alone make, and therefore alone own, the home market.

Q. What is Free Trade?

A. Also a principle. It holds that producers abroad should be allowed to compete for the home market.

Q. Who are the Protectionists?

A. Home producers standing by their title to the home market. Q. Who are the Free Traders?

A. Importers and their pals stealing the home market from its lawful owners.

Q. Wherein does the work of the Protectionists and the Free Traders differ?

A. The Protectionists make and defend while the Free Traders attack and destroy home civilization.

Q. How do Free Traders destroy home civilization?

A. They destroy home production which employs the people, and so substitute violence for industry as a breadwinning craft.

Q. After all, are not those who pass Free Trade laws merely scholars, high minded and pure, moved solely by pride in the common weal?

A. No. It is not pride but price that moves them to sell the home market to the Market Robber. Under whatever color or cover, it is still the Market Robber's silver paid to these, our Judases, by which we are betrayed.

Q. Who is the Market Robber?

A. The importer who robs it of its power to employ home producers in the market made and owned by them.

Q. What is the secret of the Market Robber's power?

A. Market-robbing booty. His competitor, the home producer, is lucky to get 6 per cent a year from his mine, forest, farm, factory, or fishery, while the Market Robber's booty may be 100 per cent, "Adapted from "A Tariff Catechism," in the American Economist, III, 62 (1914).

big enough to bribe his way into any market.

Q. Why did the Market Robber fight so hard to break into our market?

A. To steal billions in wages from our home laborers.

I.

148. The Universal Fruits of Free Trade1

BY ANDREW YARRINGTON, GENT

Consider what quantities of fine Linnens are made in Holland and Flanders, and here worn and consumed, and how many hands it imploys in work to manufacture it, and the great benefit the Dutch gain, being the great Masters of that Trade?

2. Consider, that if these fine clothes were made here, how it would imploy the Poor, raise the price of Land, and keep our Moneys at home; for the Dutch take nothing from us in exchange, wherein the Benefit is in any way considerable to the Publick.

3. Consider, of course, all Linnens bought from France, as Canvases, Lockrums, and great quantities of coarse Clothes, which have of late years so crowded upon us, that it hath almost laid aside the making of Linnen Cloth in England, and thereby the people are unimployed, and the Land lyeth idle and waste.

4. Consider, the French take nothing of any value from us, but it is ready money for their Linnens; so we keep their people at work, and send them our moneys to pay them for it, and our poor are unimploy'd: But if a tax were laid upon their coarse Linnen Clothes, then what is brought out of France into England would be made here of our own growth, to the Nation's great enriching.

5. Consider the Twine and Yarn ready wrought and brought out of the East-Country to make Sail-Cloth and Cordage, which hath taken off the labour of a multitude of people in Suffolk, and thereabouts, and hath so lessened that Trade, that it is almost lost: But if a tax were laid upon the Threds brought over ready wrought, then the Labour of all such things would be here to supply our Poor at work, and raise the price of our Lands.

6. Consider what vast quantities of narrow coarse Clothes come out of Germany, and here vented and worn; the cheapness whereof hath beaten out the Linnen Trade formerly made in Lancashire, Cheshire, and thereabouts: A tax being laid on these Easterling Clothes would occasion the reviving of that coarse Cloth-Trade again with us, and would set multitudes at work.

15

'Adapted from England's Improvement by Sea and Land: To Out-do the Dutch without Fighting, to Pay Debts without Moneys, to Set to Work All the Poor of England, etc., 144-146 (1677).

7. Consider, the Foreign Bed-ticking coming hither cheap, hath almost destroyed that Trade in Dorcetshire; and so the spinners are Idle and Land prices fall; and in this, as in other things, we send our Moneys into Foreign parts, to keep their Poor at work and support them; and here we starve our own, and lose that Trade: A Tax upon Foreign Bed-ticking would prevent all this.

8. Consider the vast and infinite quantities of Thred ready spun, that comes down out of Germany into England, and here made. use of; It is of late discovered that the cheapness of these Threds will eat out the very Spinning in most parts of England; A Tax being put upon the Threds would put the Wheel to work in England again. This is of great consequence to the Publick, to be taken into consideration; for in this very thing of spun-yarn, no less than Thirty thousand People would be here imployed, if by Law it were encouraged.

E. THE CASE FOR PROTECTION

149. Protection and Industrial Transformation1

BY FRIEDRICH LIST

The transition from the savage to the pastoral, and from the pastoral to the agricultural state is very efficiently promoted by free intercourse among nations. The elevation of an agricultural people to the condition of countries at once agricultural, manufacturing, and commercial, can only be accomplished under free trade when the various nations engaged at the time in manufacturing are in the same degree of civilization.

But some of them, favored by circumstances, having distanced others in manufactures, commerce, and navigation, have adopted and still persevere in a policy well adapted to give them the monop-. oly of manufactures, and to impede the progress of less advanced nations or those in a lower degree of culture. The measures enforced by such nations are called the protective system.

The anterior progress of certain nations and foreign commercial legislation have compelled inferior nations to look for special means of effecting their transition from the agricultural to the manufacturing stage in industry, and as far as practicable, by a system of duties, to restrain their trade with more advanced nations aiming at a manufacturing monopoly. The system of import duties is consequently a natural consequence of the tendency of nations to seek for

10 Adapted from The National System of Political Economy, passim. Translated by G. A. Matile (1841).

guarantees of their existence and prosperity, and to establish and increase their weight in the scale of national influence. Such a principle is rendered reasonable only so far as it renders easy the economical development of a nation.

Such restrictions are of the greatest importance because of the impetus which they give to the division of labor. Individuals would be in vain laborious, economical, ingenious, enterprising, intelligent, and moral, without a division of labor, and a coöperation of productive power. The principle of the division of labor has been hitherto but imperfectly understood. Industrial production depends to a great extent upon the moral and material association of individuals for a common end. This principle extends to every kind of industry.

The division of labor and the combination of productive powers take place in a nation when the intellectual power is applied so as to cooperate freely and efficiently with national production. A merely agricultural people, in free intercourse with manufacturing and trading nations, will lose a considerable part of their productive power and natural resources, which must remain idle and unemployed. It can possess neither an important navigation, nor an extensive trade; its prosperity, so far as it results from external commerce, may be interrupted, disturbed, or annihilated by foreign legislation or by

war.

150. America's Allegiance to Protection"

BY ALBERT J. LEFFINGWELL

I intend to state a few propositions, which, as generally accepted facts, appear to me to influence very largely the national acquiescence of America in the protective policy. Perhaps they may be heard with more patience from one who has never had the slightest connection with the manufacturing interest; who ought apparently to clamor for the cheapest market, but who is nevertheless, for the following reasons, a firm adherent to the protective system:

1. No country of modern times, which is without manufactures, which exports raw products for foreign made goods, and the inhabitants of which are almost wholly engaged in cultivating the soil, has succeeded in obtaining wealth, prosperity, and power as a nation. This simple fact is recognized by every civilized government in the world. Free-trade at the present day is either an English or a barbarous practice. Even English colonies perceive that they must build up their home industries if they are ever to gain essential

17 Adapted from an article in the London Contemporary Review, XXXVIII, 56-68 (1880).