Tis a strange fact that now when there is so much talk in this country about the expediency of breaking down a considerable part of the protective system to benefit certain manufacturers who claim to have found great advantage in export trade, other leading protective na tions show no indications of abandoning the system in the least part, but rather they are seeking all available means to strengthen it. Even Great Britain, after half a century of experience with what is generally denominated as free trade, shows a strong inclination to return to some degree of protectionism.

ness

1868 to 1877 she had practically a free trade policy; frequent tariff changes being made in the intervening years and always in the direction of lower duties. It is said that there was not the slightest occasion for this change of economic policy, and that "it was pressed to a successful issue by men inexperienced in busiand dogmatic and speculative reasoners." But a protectionist reaction set in which swept away every vestige of free trade and gave the German people a more vigorous protection than they had ever enjoyed. It is obvious that this return to the protective policy would not have been accomplished if the country had been thriving under a revenue tariff. On the contrary, when this tariff

A brief review of the experience of foreign countries under a protective policy will show that those nations which have encouraged domestie production by protective laws and diversined their industries have become the most prosperous commercial nations. Even England is not accounted an exception, for maintained a protective policy for three hundred years beopted free trade, and she

to be

she

nearly

would

was in force there was the same industrial and commercial depression as was experienced in this country under the Wilson tariff. In 1885 Bismarck was able to point to definite results which had followed the return to protection, in the revival of business and the expansion of industries. However, protection has

not then have abandoned this system if protection had been as strongly intrenched in other countries as it is to-day. Prior to 1868 Germany had susan inadequate system of prolong period. From

tained tection for

a

been successful in Germany to a less extent than in the United States, because she has found it necessary to import so large a proportion of her raw materials for manufacturing purposes, and also because of her inability to produce all of the food supplies required for domestic consumption. But we can readily see that the material condition of the German people would have been incomparably worse under a free trade policy, and that the industrial and commercial advantages which Germany now enjoys are due to the policy of protection. We have seen that under this policy Germany has not only been able to supply the needs of her home market in most kinds of manufactured goods, but has been able to force into foreign markets many articles of the same description she formerly purchased from other countries.

Protection in France made little progress until after the Napoleonic wars. It has been said that the development of France since that time has been without parallel in any continental country. Her manufacturing has been extended to every branch of production. The agricultural resources of the country have been so fully developed that every foot of arable soil is cultivated like a garden. Under a favorable trade balance there has been a vast accumulation of treasure, so that today we find the wealth of France es timated at $50,000,000,000-eight billions more than Germany and only ten billions less than the United Kingdom. It is beyond all controversy that these results could never have been accomplished under a free trade policy.

In Italy the development of industries has been most difficult, as may be inferred from the fact that

the tariff of that country is only nominally protective and is chiefly imposed for the specific purpose of raising revenue. The inefficiency of a tariff to promote industrial development when it is only incidentally protective is well illustrated in Italy, but considering the adverse circumstances her productive capacity shows steady improvement and her labor conditions are much better than formerly.

Although Austria had maintained protective customs laws since 1780, she was induced in 1853 to enter into

a

commercial treaty with Prussia (through British influence, it is said), with the usual detrimental results to her trade and industries. By the terms of this treaty Great Britain shared with Prussia in the benefits. In 1882 all protective duties were restored, and since that time whatever tariff changes have been made are on the line of increased duties. Under protection Austria-Hungary now produce nearly one hundred important manufactured articles, and in some parts of the empire wages have doubled in the last thirty years.

Until 1844 Belgium was a free trade country. At that time her industries had been almost ruined by the ever-increasing influx of British goods. Then she adopted protection; and in 1861 a Belgian writer said: "As a consequence, production, except of articles of food, has outrun the needs of population, although it has increased in numbers and wealth, and we are obliged to seek foreign outlets." Now it is said that Bel

gium's industries have attained to such efficiency that she holds preeminence over England in the production of many articles. Holland, which formerly prospered under protection, now has a tariff on practically a revenue basis; but she has not kept pace with Belgium in productive capacity. As the Dutch are a very frugal people and willing to work at low wages, they are better able to supply their own wants and do not need to import so much of foodstuffs as the people of many other European countries. But it is a fact that Dutch commerce is not flourishing under a free trade policy, and that Holland (according to Mulhall) contains a larger per cent of pauperism in proportion to population than any country in Europe ex

cept Great Britain.

manufacturing. Under the low tariff enacted in that year there was an immediate check to industrial progress and an adverse balance of trade. A return to a protective tariff in 1877, and the revisions of 1882 and 1885 giving additional protection, was accompanied by wonderful strides in industrial development. The tariff was again revised in 1891; and Hon. George B. Curtiss says of this measure: "American free traders would do well to study this tariff and the methods adopted in framing it. It is safe to say that in every instance the protection of home industry was paramount to everything else. Socalled raw material native to Russia received the same degree of protection as the finished article. Especial attention was given to the chemical industry, which had in previous tariffs been considered of secondary importance. Great changes were made

industries, tuga 1

s, though Spain, and Poras well, maintains but crude

to encourage domestic productions from the first stages to the last. In short, adequate protection was ex tended to every industry in which Russia can engage to advantage." At this time the industries promise

pire contains within itself more

an enormous expansion. The em

other country except the United

sources in raw materials than any

States; and with its vast number of laborers and the firm purpose of the Russian government to promote the

greatest possible development of

these resources, it is only a question of time when the Russians will be

a profitable market to other countries.

The first duties imposed on for eign goods by Canada was in 1849, and these were chiefly for revenue; but in 1858 a tariff law was enacted in the interest of protection. The duties were lowered in 1866, and in 1874 the tariff was reduced to almost a revenue basis. In 1879 the first tariff that gave anything like adequate protection to home industries was enacted, and all know the beneficial results to Canadian interests. Three years later the Canadian minister of finance in his budget speech said that "the laborer was getting higher wages, the manufacturer was making more profit, the farmer had a demand at good prices for all his produce, the merchant had doubled his business, and the government credit and finances were in a most satisfactory condition." Nevertheless,

in examining the list of Canada's imports it is made apparent that she still has too much of free trade, and should be producing more of the things she is buying from other countries.

The Australian colonies, with the exception of New South Wales, have had varying degrees of protectionthe colony having the most protection making the greatest progress; and under federation it seems most probable that protection will be established as the permanent national policy.

Mexico has been making fair progress in manufacturing; and in the list of her manufacturing enter

prises we find enumerated 123 woolen and cotton mills, but her tariff is arranged more for the purpose of producing revenue than to encourage new industries. Brazil has 155 cotton factories employing 200,000 persons; but in all South American countries (and this is true of all tropical lands) there is no definite purpose to encourage manufacturing enterprises; and for the most part the manufactures they require are purchased in Europe and the United States, while their exports consist almost wholly of natural products. Japan is making progress in manufacturing, but her industrial growth has been hampered by the restrictive provisions of some of her commercial treaties, and like several of the western nations she appears to be suffering from labor congestion and too much militarism.

There is one lesson to be drawn from the tariff experiences of other countries of especial significance, and that is that no one of them has made substantial progress under low or revenue tariffs. Though Great Britain enjoyed manufacturing supremacy for a long time under what is called a free trade policy and before other countries had made great industrial progress, she is now importing foreign manufactured goods to the value of over $500,000,000 annually, and is zealously hunting for new markets for the domestic goods that have thus been displaced. But for any country to make the best progress under a protective policy certain conditions are indispensable.

There must be comparative immunity from civil strife and foreign wars, adequate facilities for developing natural resources, an abandonment of antiquated methods of production, and a high standard of industrial activity and efficiency. The greatest disadvantage under which some European nations are laboring is their great dependence upon other countries for foodstuffs. All are burdened with the support of great numbers of nonproducers which compose their standing armies; nearly all are dependent upon other countries for much of the raw material used in their manufactures; all are hampered more or less by a redundant population, and excessive labor competition, which depresses wages and correspondingly limits the purchasing power of the masses.

in having aspirations of their own to promote their industrial development and that they cannot wisely permit another country to become a monopolist of their privileges. There is every indication that from this time forth each progressive nation will earnestly strive to secure for itself the highest degree of industrial independence that is possible. This is a contingency which some of our export interests will do well to take into their account before they hasten to break down our protective system with the delusive expectation that foreigners will thereby be induced to buy more of us and to manufacture less for themselves. It is plainly evident to most thoughtful observers that after other manufacturing nations have been well supplied with our improved machinery and processes and have copied our economic methods, as Germany has already done to a considerable extent, our these countries will be restricted to only really profitable exports to food products and to manufactured articles where quality and utility will

commercial

ceded

quate

to other nations without ade

eign purchasers than a low price. be of more consequence to the for

IT does not follow that because fifty years ago we needed foreign immigrants we need them now. There is no iron law about this. The simple fact is, the point has been reached where an unlimited influx of any form of very cheap labor from any part of the world is now an injury to the social and economic

Gunton's Magazine.