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the nation。 By prohibitions and protective duties it does not give



directions to individuals how to employ their productive powers and



capital (as the popular school sophistically alleges); it does not



tell the one; 'You must invest your money in the building of a



ship; or in the erection of a manufactory;' or the other; 'You must



be a naval captain or a civil engineer;' it leaves it to the



judgment of every individual how and where to invest his capital;



or to what vocation he will devote himself。 It merely says; 'It is



to the advantage of our nation that we manufacture these or the



other goods ourselves; but as by free competition with foreign



countries we can never obtain possession of this advantage; we have



imposed restrictions on that competition; so far as in our opinion



is necessary; to give those among us who invest their capital in



these new branches of industry; and those who devote their bodily



and mental powers to them; the requisite guarantees that they shall



not lose their capital and shall not miss their vocation in life;



and further to stimulate foreigners to come over to our side with



their productive powers。 In this manner; it does not in the least



degree restrain private industry; on the contrary; it secures to



the personal; natural; and moneyed powers of the nation a greater



and wider field of activity。 It does not thereby do something which



its individual citizens could understand better and do better than



it; on the contrary it does something which the individuals; even



if they understood it; would not be able to do for themselves。



    The allegation of the school; that the system of protection



occasions unjust and anti…economical encroachments by the power of



the State against the employment of the capital and industry of



private individuals; appears in the least favourable light if we



consider that it is the foreign commercial regulations which allow



such encroachments on our private industry to take place; and that



only by the aid of the system of protection are we enabled to



counteract those injurious operations of the foreign commercial



policy。 If the English shut out our corn from their markets; what



else are they doing than compelling our agriculturists to grow so



much less corn than they would have sent out to England under



systems of free importation? If they put such heavy duties on our



wool; our wines; or our timber; that our export trade to England



wholly or in great measure ceases; what else is thereby effected



than that the power of the English nation restricts proportionately



our branches of production? In these cases a direction is evidently



given by foreign legislation to our capital and our personal



productive powers; which but for the regulations made by it they



would scarcely have followed。 It follows from this; that were we to



disown giving; by means of our own legislation; a direction to our



own national industry in accordance with our own national



interests; we could not prevent foreign nations from regulating our



national industry after a fashion which corresponds with their own



real or presumed advantage; and which in any case operates



disadvantageously to the development of our own productive powers。



But can it possibly be wiser on our part; and more to the advantage



of those who nationally belong to us; for us to allow our private



industry to be regulated by a foreign national Legislature; in



accordance with foreign national interests; rather than regulate it



by means of our own Legislature and in accordance with our own



interests? Does the German or American agriculturist feel himself



less restricted if he has to study every year the English Acts of



Parliament; in order to ascertain whether that body deems it



advantageous to encourage or to impose restrictions on his



production of corn or wool; than if his own Legislature imposes



certain restrictions on him in respect of foreign manufactured



goods; but at the same time insures him a market for all his



products; of which he can never again be deprived by foreign



legislation?



    If the school maintains that protective duties secure to the



home manufacturers a monopoly to the disadvantage of the home



consumers; in so doing it makes use of a weak argument。 For as



every individual in the nation is free to share in the profits of



the home market which is thus secured to native industry; this is



in no respect a private monopoly; but a privilege; secured to all



those who belong to our nation; as against those who nationally



belong to foreign nations; and which is the more righteous and just



inasmuch as those who nationally belong to foreign nations possess



themselves the very same monopoly; and those who belong to us are



merely thereby put on the same footing with them。 It is neither a



privilege to the exclusive advantage of the producers; nor to the



exclusive disadvantage of the consumers; for if the producers at



first obtain higher prices; they run great risks; and have to



contend against those considerable losses and sacrifices which are



always connected with all beginnings in manufacturing industry。 But



the consumers have ample security that these extraordinary profits



shall not reach unreasonable limits; or become perpetual; by means



of the competition at home which follows later on; and which; as a



rule; always lowers prices further than the level at which they had



steadily ranged under the free competition of the foreigner。 If the



agriculturists; who are the most important consumers to the



manufacturers; must also pay higher prices; this disadvantage will



be amply repaid to them by increased demands for agricultural



products; and by increased prices obtained for the latter。



    It is a further sophism; arrived at by confounding the theory



of mere values with that of the powers of production; when the



popular school infers from the doctrine; 'that the wealth of the



nation is merely the aggregate of the wealth of all individuals in



it; and that the private interest of every individual is better



able than all State regulations to incite to production and



accumulation of wealth;' the conclusion that the national industry



would prosper best if only every individual were left undisturbed



in the occupation of accumulating wealth。 That doctrine can be



conceded without the conclusion resulting from it at which the



school desires thus to arrive; for the point in question is not (as



we have shown in a previous chapter) that of immediately increasing



by commercial restrictions the amount of the values of exchange in



the nation; but of increasing the amount of its productive powers。



But that the aggregate of the productive powers of the nation is



not synonymous with the aggregate of the productive powers of all



individuals; each considered separately  that the total amount of



these powers depends chiefly on social and Political conditions;



but especially on the degree in which the nation has rendered



effectual the division of labour and the confederation of the



powers of production within itself  we believe we have



sufficiently demonstrated in the preceding chapters。



    This system everywhere takes into its consideration only



individuals who are in free unrestrained intercourse among



themselves; and who are contented if we leave everyone to pursue



his own private interests according to his own private natural



inclination。 This is evidently not a system of national economy;



but a system of the private economy of the human race; as that



would con

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