they do owe a debt to the town which gives them homes. And they should see to it that the money spent for necessary articles is kept here as far as possible."

"Now look here, Doc,' said the dollar to the dentist, 'if you'll only let me stay in this town, and won't send me to Roars, Sawbuck & Co.'s in Chicago for that shaving mug, I'll circulate around and do you lots of good. You buy a big beefsteak with me, and the butcher will buy groceries, and the grocer will buy dry goods, and the dry goods merchant will pay his doctor's bill with me, and the doctor will give me to the farmer for oats with which to feed his horse, and the farmer will buy fresh beef from the butcher, and the butcher will come around to you to get his tooth mended. In the long run you see I will be more useful to you here at home than if you send me away forever.''

"The recent cold spell, which caused a large number of water pipes to burst, has been a bonanza for business. Few things in the last year have caused so many people to dig down into their jeans and cough up the cartwheels that spell prosperity."

141. Remember Colorados

The people of Colorado are going to build a wall around the state and close the gates this year so that not one dollar of the $200,000,000 which will be received from our crops shall go outside the border line. The wall is to be built of a solid unflinching sentiment in favor of spending this $200,000,000 at home and making it work for our own prosperity.

The members of the Denver Chamber of Commerce have taken. their coats off in behalf of the Times's movement and will ask every commercial organization in the state to assist. The newspapers of the state see in the movement a chance to keep the wheels of industry humming in every city, town, and village in Colorado, and will join in the campaign.

"Colorado has a $200,000,000 crop yield this year and this $200, 000,000 is going to be spent among the merchants, the tradesmen, the manufacturers, and the workingmen of our own state." The above is the only platform in this campaign in behalf of a prosperous state. Last year we sent some $20,000,000 to eastern mail-order houses alone. Half of the value of our crops went outside of the state to eastern manufacturers and merchants whose only interest in Colorado is to get all the money possible out of its people. It is to keep this money in the state and make it work and keep on working for our own people that this campaign has been organized.

Adapted from a leading article in the Denver Times, of July 31, 1912.

Do you know, Mr. Citizen and Mrs. Housewife, just what it means to produce a $200,000,000 harvest in Colorado and keep the money at home? It means prosperity for your grocer, your butcher, and your dry goods merchant. It means banks full of money with which business can be conducted. It means passenger trains full of people instead of empty coaches. It means that the laboring men will have jobs and steady salaries and happy homes, well-fed children and smiling wives.

Every man, woman, and child in Colorado has a part to perform in this great work. Buy your shoes, hats, clothing, and underwear from your local merchants. Ask them to give you Colorado-made products whenever possible. Spend your money for Colorado-made agricultural implements, wagons, carriages, and automobiles. Keep that $200,000,000 at home! Be selfish-in the sense that you are part of the state for once in your life! Don't let the East feed on the grain while we eat the husks. Don't let the best of that $200,000,000 crop get away from Colorado.

.

This campaign is for a richer, better, and greater state. Now is the time to begin before the stream of wealth has swept beyond our borders. Preach this gospel of Colorado for Colorado! Organize local clubs, wear buttons showing your sentiment, and fight for your state. If a half or third of this $200,000,000 is allowed to go East this year it will work for the prosperity of other communities and leave Colorado in a position where it will have to begin all over again. Now that we have it in sight, let's hold on to prosperity in the way that will count.

142. The Seen and the Unseen'

BY FREDERIC BASTIAT

Have you ever had occasion to witness the fury of the honest burgess, Jacques Bonhomme, when his scapegrace son has broken a pane of glass? If you have, you cannot fail to have observed that all the bystanders, were there thirty of them, lay their heads together to offer the unfortunate proprietor this never-failing consolation, that there is good in every misfortune, and that such accidents give a fillip to trade. Everybody must live. If no windows were broken, what would become of the glaziers? Now, this formula of condolence contains a theory which it is proper to lay hold of in this very

Adapted from the essay The Seen and the Unseen, quoted in Walker, Political Economy, 321-323. (1850).

simple case, because it is exactly the same theory which unfortunately governs the greater part of our economic institutions.

Assuming that it becomes necessary to expend six francs in repairing the damage, if you mean to say that the accident brings in six francs to the glazier, and to that extent encourages his trade, I grant it fairly and frankly, and admit that you reason justly.

The glazier arrives, does his work, pockets the money, rubs his hands, and blesses the scapegrace son. That is what we see.

But, if by way of deduction, you come to conclude, as is too often done, that it is a good thing to break windows-that it makes money circulate-and that encouragement to trade in general is the result, I am obliged to cry, Halt! Your theory stops at what you see, and takes no account of what we don't see.

We don't see that since our burgess has been obliged to spend his six francs on one thing, he can no longer spend them on another.

We don't see that if he had not this pane to replace, he would have replaced, for example, his shoes, which are down to the heels; or have placed a new book on his shelf. In short, he would have employed his six francs in a way in which he cannot now employ them. Let us see, then, how the account stands with trade in general. The pane being broken, the glazier's trade is benefited to the extent of six francs. That is what we see.

If the pane had not been broken, the shoemaker's or some other trade would have been encouraged to the same extent of six francs. This is what we don't see. And if we take into account what we don't see, which is a negative fact, as well as what we do see, which is a positive fact, we shall discover that trade in general, or the aggregate of national industry, has no interest, one way or another, whether windows are broken or not.

Let us see again how the account stands with Jacques Bonhomme. On the last hypothesis, that of the pane being broken, he spends six francs, and gets neither more nor less than he had before, namely, the use of a pane of glass. On the other hypothesis, namely, that the accident had not happened, he would have expended six francs on shoes, and would have had the enjoyment both of the shoes and the pane of glass.

Now, as the good burgess, Jacques Bonhomme, constitutes a fraction of society at large, we are forced to conclude that society, taken in the aggregate, and after all accounts of labor and enjoyment. have been squared, has lost the value of the pane of glass which has been broken.

D. THE PERENNIAL ARGUMENT FOR RESTRICTION

143.

Gold and Wealth10

BY MARTIN LUTHER

Gold has brought us Germans to that pitch that we must needs scatter our gold and silver in foreign lands, and make all the world rich and ourselves remain beggars. England should indeed have less gold, if Germany left her her cloth; and the king of Portugal also would have less if we left him his spices. Reckon thou how much money is taken out of German land without need or cause in one Frankfort fair, then wilt thou wonder how it comes that there is a penny left in Germany. Frankfort is the silver-and-gold hole through which everything which sprouts and grows among us, or is coined and stamped, runs out of German lands. If this hole were stopped, we would perchance not hear the complaint how on all hands there is naught but debts and no money, and all provinces and cities are burdened and exhausted by interest-paying.

144. What the State Owes to Industry11

BY GEORGE B. CURTISS

History teaches that no nation of modern times has established the industrial arts and reared a great manufacturing structure under international competition. Our manufacturing industries as well as our wondrous industrial and commercial civilization did not come out of chaos; they did not spring into existence and grow by themselves; they have been established and reared under that system of protection which was founded and designed as the architect plans a building or an engineer lays out a bridge. We have had no manufactures enumerated in our census returns which were not named in our tariff schedules. Our success has not been achieved without a constant unremitting struggle. We have gradually grown and. expanded our industries by increasing tariff duties and perfecting our protective system, and every time we have reduced duties to the competitive point our industries have declined and we have gone backward. The importers and manufacturers of the Old World even under our protective system, have been a constant menace to our growth. The great American industrial fortress, the home

10 Adapted from the address on "Trade and Usury," in the Open Court, XI, 18. Translated by W. H. Carruth. Copyright. (1524.)

"Adapted from a letter written January 7, 1914, accepting an invitation to attend the annual meeting of the American Protective Tariff League. Published in the American Economist, LIII, 26-27.

market, has ever been under a constant siege. The importers and foreign manufacturers have scaled our tariff walls fraudulently to supply our people with the wares made by the poorly paid labor of the Old World. Congress has finally run up the white flag and surrendered the fortress; it has given to our industrial enemies the freedom of our cities. In the great war for industrial and commercial supremacy which has raged so long in the world of business and of commerce, our President has finally intervened in behalf of our enemies, and the invading army of the Old World is moving forward to subdue and possess our market.

A hundred million of people in the United States, occupying a plane of wages and industrial civilization 150 per cent higher than the wage scale and mode of living of three hundred millions of people in Europe, by the irresistible force of international competition, are to be leveled down to the plane of the Old World. The American market, the greatest and most profitable in the world, is offered ast the price to be fought for in a warfare in which the competitors have the unquestionable advantages of millions of experienced, efficient, and well-disciplined labor, working at low wages. The final outcome of such a struggle does not admit of difference of opinion. The economists and statesmen of the world, of all schools of political economy, agree that the nation of the higher wage scale and more. expensive mode of living will be the weaker party in the contest for supremacy, and must ultimately succumb to its stronger rival.

Wages, prices, and mode of living must yield and succumb to the leveling process of world-wide competition. There is no friendship, patriotism, or brotherly love in this contest. The world of business is no less selfish and no more altruistic than before. American consumers will not buy one cent's worth of goods simply because they are made in American mills by American labor; they will patronize the foreigner if they can save so much as a penny by doing it. Our Presidents, even, have changed. We have no Washington who took pride in being inaugurated in a suit of clothes made by the hands of American labor; nor a Jefferson, who boasted of "purchasing nothing foreign where an equivalent of domestic fabric can be obtained."

The leveling process has already begun. The law of gravitation of industries to a common world-wide level under competition operates in the world of business the same as the law of gravitation operates in the physical world. The new law has taken effect. Threehundred millions of energetic, ambitious, selfish, devouring moneygetters of the Old World will seize upon every advantage which has been devised for them. The fight is on. It is a struggle for the