SECTION IX.

WHAT INDUSTRIES ONLY SHOULD BE FAVORED.

That as a rule only such industries should be favored which, by reason of the natural capacities of the country and of the people, have a good prospect of being able soon to dispense with the favors accorded, would be self-evident were it not for the fact that it has been ignored a thousand times in practice.1 It is especially necessary to take the natural station (Standort)? as well as the natural succession of the different branches of industry into consideration. Half manufactured articles of

had before 1824 a value of £350,000 to £380,000; in 1830, of over £521,000; in 1854, of almost £1,700,000; in 1863, of £3,147,000. Compare Porter, Progress, I, 255 ff. On the other hand, Austria was over-hasty when it went over from the prohibition of foreign silk stuffs to duties of 180 florins per cwt. Oest. Weltausstellungsbericht von 1867, IV, 140.)

1 Torrens calls an industry which can, in the long run, bear no competition: "A parasitical formation, wanting the vital energies while permitted to remain, and yet requiring for its removal a painful operation." (Budget, P. 49.) Especially frequent in the case of luxury-industries in which the court was interested. The oysters which were sent for to Venice under Leopold I., in order to stock the artificial beds in the garden of the president of the Exchequer reached Vienna, dead. (Mailath, Gesch., IV, 384.) As to how Elizabeth, and Catharine II. in Russia, desired to compel the cultivation of silk, and caused the peasantry to be levied like recruits for that purpose; as to how the latter petitioned against it in a thousand ways, and endeavored to destroy the silk worms, mulberry trees etc., see Pallas, Reise durch das südliche Russland, I, 154 ff. Frederick II.'s silk-protection is characterized mainly by the order for church-inspectors to keep tables (Tabellen) concerning it, and to look after clergymen's and teachers' knowledge of the cultivation of silk. Tragico-comic endeavors of the Shah Nasreddin to establish manufactories in Persia: Pollak, Persien, II, 138 ff. One of the principal effects of the Mexican protective system, since 1827, was the estab. lishing of manufactories on the coast only to cover up smuggling. (Wappäus, Mexiko, 83 ff.

2 When Holland stunted its bleach-yards by high duties on linen, an industry in which it must always remain behind many other nations, was favored at the expense of another for which it possesses incomparable advantages.

foreign raw material should not be protected until the entire manufactured article has completely outgrown protection; which condition manifests itself most clearly by a strong, independent exportation of the article. The celebrated tariff controversy between the cotton spinners and the weavers in the Zollverein was probably without any conscious plan, but certainly to the well-being of German industry, settled essentially in accordance with these principles. In such struggles of the different stages of a branch of production with one another, it is necessary not only mechanically to weigh the number of workmen, the amount of capital, etc., on both sides, but also organically the capacity for development and the influence of both sides on the entire national life. Half-manu

Even before Colbert's time, French jewelry was prepared from Italian gold wire, and exported in great quantities. The mere rumor that it was contemplated to impose heavy duties on gold wire, provoked plans for the removal of the industry from Geneva to Avignon. (Farbonnais, F. de Fr., I, 275.) When France protects its raw silk, it makes the purchase of raw material in Italy cheaper to all its competitors.

4 According to L. Kühne (Preuss. Staatszeitung, 17 Decbr., 1842), the cotton yarn consumption of Germany amounted to 561,000 cwt. per annum, of which the home spin-houses yielded 194,000 cwt. Weaving employed 311,500 workmen with 32,250,000 thalers wages, spinning only 16,300 workmen with a little over 1,000,000 thalers wages. Even if the entire yarn-want (Garnbedarf) were spun in the interior, yet spinning would stand to weaving only as 1:5 in the number of workmen, and as 1:8 in the amount of wages. Hence the tariff of the Zollverein defended by Prussia, placed the tariff on tissues (Gewebe) 25 times as high as on yarn, while their prices stood to each other as 1:3-4. List (Zollvereinsblatt, 1844, No. 40 ff.) objected that only by spinning industries of its own could Germany's cotton-tissue industries become independent; since it was a very different thing to procure the material to be worked from the many mutually competing cotton countries, rather than from an intermediate hand; and indeed, from the most powerful industrial country of the world. (Compare, however, Faucher's Vierteljahrsschrift, 1863, Bd. I.) Besides, there is the great importance of the spinning industries, in order to come into immediate connection with America, the most rapidly growing market, to influence Holland, and also to advance navigation and the manufacture of machinery. In opposition to Kühne's calculation, List says: A man who lost eyes, ears, fingers and toes, would undergo only a small loss of weight.

factured articles of a very superior quality should not be kept away, since by promoting commodities of the first quality they have an educational influence on the whole industry. Thus, in the case of the duties on iron, it should not be forgotten, that they enhance the price of all instruments of industry.5 Just as objectionable are protective duties for machines or for intellectual elements of training."

'Special calculations on this matter in Junghanns, Fortschritt des Zollvereins (1849), I, 179.

Frederick II. threatened the prosecution of one's studies at a foreign university with a lifelong exclusion from all civil and ecclesiastical offices; and, in the case of the nobility, even with the confiscation of their property. (Mylius, C. C. M. Contin, IV, 191, Noviem C. C., I, 97.)

INDEX TO NAMES OF AUTHORS

CITED IN THE PRINCIPLES.

Anderson, A. (Origin of Commerce), Baboeuf, 79, 81.