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then　no　longer　need　protection。



　　　　Thus　it　is　Adam　Smith　who　wants　to　introduce　the　principle　of



retaliation　into　commercial　policy　　a　principle　which　would　lead



to　the　most　absurd　and　most　ruinous　measures；　especially　if　the



retaliatory　duties；　as　Smith　demands；　are　to　be　repealed　as　soon　as



the　foreign　nation　agrees　to　abolish　its　restrictions。　Supposing



Germany　made　reprisals　against　England；　because　of　the　duties



imposed　by　the　latter　on　German　corn　and　timber；　by　excluding　from



Germany　English　manufactured　goods；　and　by　this　exclusion　called



artificially　into　existence　a　manufacturing　power　of　her　own；　must



Germany　then　allow　this　manufacturing　industry；　created　at　immense



sacrifice；　to　come　to　grief　in　case　England　should　be　induced　to



reopen　her　ports　to　German　corn　and　timber？　What　folly。　It　would



have　been　ten　times　better　than　that　if　Germany　had　submitted



quietly　to　all　measures　of　restriction　on　the　part　of　England；　and



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　na