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had discouraged the growth of any manufacturing power of her own



which might grow up notwithstanding the English import



prohibitions; instead of stimulating its growth。



    The principle of retaliation is reasonable and applicable only



if it coincides with the principle of the industrial development of



the nation; if it serves as it were as an assistance to this



object。



    Yes; it is reasonable and beneficial that other nations should



retaliate against the English import restrictions on their



agricultural products; by imposing restrictions on the importation



of manufactured goods; but only when those nations are qualified to



establish a manufacturing power of their own and to maintain it for



all times。



    By the second exception; Adam Smith really justifies not merely



the necessity of protecting such manufactures as supply the



immediate requirements of war; such as; for instance; manufactories



of arms and powder; but the whole system of protection as we



understand it; for by the establishment in the nation of a



manufacturing power of its own; protection to native industry tends



to the augmentation of the nation's population; of its material



wealth; of its machine power; of its independence; and of all



mental powers; and; therefore; of its means of national defence; in



an infinitely higher degree than it could do by merely



manufacturing arms and powder。



    The same must be said of Adam Smith's third exception。 If the



burden of taxation to which our productions are subjected; affords



a just ground for imposing protective duties On the less taxed



products of foreign countries; why should not also the other



disadvantages to which our manufacturing industry is subjected in



comparison with that of the foreigner afford just grounds for



protecting our native industry against the overwhelming competition



of foreign industry?



    J。 B。 Say has clearly perceived the contradictory character of



this exception; but the exception substituted by him is no better;



for in a nation qualified by nature and by its degree of culture to



establish a manufacturing power of its own; almost every branch of



industry must become remunerative under continued and powerful



protection; and it is ridiculous to allow a nation merely a few



years for the task of bringing to perfection one great branch of



national industry or the whole industry of the nation; just as a



shoemaker's apprentice is allowed only a few years to learn



shoemaking。



    In its eternal declamations on the immense advantages of



absolute freedom of trade; and the disadvantages of protection; the



popular school is accustomed to rely on the examples of a few



nations; that of Switzerland is quoted to prove that industry can



prosper without protective duties; and that absolute liberty of



international commerce forms the safest basis of national



prosperity。 The fate of Spain is quoted to exhibit to all nations



which seek aid and preservation in the protective system; a



frightful example of its ruinous effects。 The case of England;



which; as we have shown in a former chapter; affords such an



excellent example for imitation to all nations which are capable of



developing a manufacturing power; is adduced by these theorists



merely to support their allegation that capability for



manufacturing production is a natural gift exclusively peculiar to



certain countries; like the capability to produce burgundy wines;



and that nature has bestowed on England; above all other countries



of the earth; the destiny and the ability to devote herself to



manufacturing industry and to an extensive commerce。



    Let us now take these examples more closely into consideration。



    As for Switzerland; it must be remarked in the first place that



she does not constitute a nation; at least not one of normal



magnitude which can be ranked as a great nation; but is merely a



conglomeration of municipalities。 Possessing no sea…coast; hemmed



in between three great nations; she lacks all inducement to strive



to obtain a native commercial marine; or direct trade with tropical



countries; she need pay no regard to the establishment of a naval



power; or to founding or acquiring colonies。 Switzerland laid the



foundation of her present very moderate degree of prosperity at the



time when she still belonged to the German Empire。 Since that time;



she has been almost entirely free from internal wars; her capital



has been permitted to increase from generation to generation; as



scarcely any of it was required by her municipal governments for



discharging their expenses。 Amid the devastations occasioned by the



despotism; fanaticism; wars; and revolutions; with which Europe was



perturbed during the last centuries; Switzerland offered an asylum



to all who desired to transfer their capital and talents to another



country than their own; and thus acquired considerable wealth from



abroad。 Germany has never adopted strong commercial restrictions



against Switzerland; and a large part of the manufactured products



of the latter has obtained a market in Germany。 Moreover; the



industry of Switzerland was never a national one; one comprising



the production of articles of common use; but chiefly an industry



in articles of luxury; the products of which could be easily



smuggled into the neighbouring countries or transported to distant



parts of the world。 Furthermore; her territory is most favourably



situated for intermediate trade; and in this respect is in some



measure privileged。 Again; their excellent opportunity of becoming



acquainted with the languages; laws; institutions; and



circumstances of the three nations which adjoin her must have given



the Swiss important advantages in intermediate commerce and in



every other respect。 Civil and religious liberty and universal



education have evoked in the Swiss; activity and a spirit of



enterprise which; in view of the narrow limits of their country's



internal agriculture; and of her internal resources for supporting



her population; drove the Swiss to foreign countries; where they



amassed wealth; by means of military service; by commerce; by



industries of every kind; in order to bring it home to their



fatherland。 If under such special circumstances they managed to



acquire mental and material resources; in order to develop a few



branches of industry for producing articles of luxury; if these



industries could maintain themselves without protective duties by



sales to foreign countries; it cannot thence be concluded that



great nations could follow a similar policy under wholly different



circumstances。 In her small national expenditure Switzerland



possesses an advantage which great nations could only attain if



they; like Switzerland; resolved themselves into mere



municipalities and thus exposed their nationality to foreign



attacks。



    That Spain acted foolishly in preventing the exportation of the



precious metals; especially since she herself produced such a large



excess of these articles; must be admitted by every reasonable



person。 It is a mistake; however; to attribute the decline of the



industry and national well…being of Spain to her restrictions



against the importation of manufactured goods。 If Spain had not



expelled the Moors and Jews; and had never had an Inquisition; if



Charles V had permitted religious liberty in Spain; if the priests



and monks had been changed into teachers of the people; and their



immense property secularised; or at least reduced to what was



actually necessary for their 

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