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。