2
A 595658
DUPL
CRIES IN A CRISIS,
ANENT
Free-Trade in Manufactures
SHATTERED BY CONCESSIVE TREATIES
AND AGGRESSIVE BOUNTIES THAT FAVOUR
Foreign Aims
upon our Industries and Shipping:
AND ANENT THE EMPIRE AND EMIGRATION,
PARLIAMENT AND ITS PROCEDURE.
COMPILED BY R. A. MACFIE OF DREGHORN, F.R.S.E.
Postage 4 d
LIFE MEMBER OF THE INCORPORATED CHAMBER OF COMMERCE OF LIVERPOOL,
AND HONORARY MEMBER OF THE COUNCIL OF THE CHAMBER,
MEMBER OF THE EDINSURGH CHAMBER OF COMMERCE,
AND OF THE MERCHANTS' BOUSE OF GLASGOW.
SECOND EDITION, ENLARGED.
EDWARD STANFORD, 55 CHARING CROSS.
1881.
[Kights not reserved.
Price 28. 6d.
CANE
S

www
ARTES
LIBRARY
1817
VERITAS
PLURIOUS UKLE
UNIVERSITY OF MICHIGAN
TUEBOR
VASZULKAN.U
SCIENTIA
CIRCUMSPICE
OF THE
SI-QUÆRIS PENINSULAM-AMŒENAM`
VAPAAEROT
ake
AMORIBUNDLES,
ERRATA.
Page 34, eighth line from foot of page, for "abandon " read “reduce.”
228, line 15, omit "secular."
229, line 14, after "allow" insert a comma, and delete comma after
"at least."
line 15, for "combating " read "competing."
""
""
"
""
27
232, line 10, for "nations" read "natives."
HF
2045
.M14
1881
CRIES, IN A CRISIS, FOR STATESMANSHIP POPULAR
AND PATRIOTIC TO TEST AND CONTEST
Free-Trade in Manufactures
SHAMMED IN CONCESSIVE TREATIES, SHACKLED WITH REPRESSIVE
DUTIES, AND SHATTERED BY AGGRESSIVE BOUNTIES, THROUGH
WHICH DEVIATIONS FROM LE LIBRE TRAVAIL ET LA LIBRE
ÉCHANGE BRITISH AIDS ARE UNDULY PROMOTING
FOREIGN AIMS UPON OUR
Industries and Shipping:
AND TO CONSTITUTIONALLY PRESERVE AND ADJUST
THE EMPIRE AND EMIGRATION,
PARLIAMENT AND ITS PROCEDURE,
WARILY AND WARMLY RECOGNISING THE IMPERIAL DEVELOPMENT
AND IMPERATIVE DEMANDS OF THE TIME.
WITH AN APPENDIX CONTAINING THE FRENCH TREATY, THE FRENCII
SHIPPING BOUNTY SCHEME, AND MANY ILLUSTRATIVE EXTRACTS.
COMPILED BY R. A. MACFIE OF DREGHORN, F.R.S.E., F.R.C.I.
+
LIFE MEMBER OF THE INCORPORATED CHAMBER OF COMMERCE OF LIVERPOOL,
AND HONORARY MEMBER OF THE COUNCIL OF THE CHAMBER,
MEMBER OF THE EDINBURGH CHAMBER OF COMMERCE,
AND OF THE MERCHANTS' HOUSE OF GLASGOW.
"Sate sanguine divûm!
facilis descensus;
Sed revocare gradum, superasque evadere ad auras,
Hoc opus, hic labor est :
•
Accipe quae peragenda prius."
•
Second Edition.
WITH ADDITIONAL INFORMATION REGARDING THE FRENCH BOUNTIES.
LONDON: EDWARD STANFORD, 55 CHARING CROSS.
1881.
I
F
A nation may gain where the merchant loses; but, wherever the merchant
gains, the nation gains equal and so much more as the maintenance and wages
of the people employed and the duty on the goods amounts to.-From Money
and Trade, by John Law, Esq. (of Lauriston): Edinburgh, 1705.
Foreign trade may be a loss to a nation; for, although the merchant be a
gainer by his trade, the public may suffer by it; but so much as the manufacturer
earns by his business, so much is also gained to the nation.-From The Interest
of Scotland: Edinburgh, 1733.
•
Foreign trade, by its imports, furnishes materials for new manufactures; and,
by its exports, it produces labour in particular commodities which could not be
consumed at home. . . . The public is also a gainer, while a greater stock of
labour is by this means stored up against any public exigency.
'Tis true,
the English feel some disadvantages in foreign trade by the high price of labour,
... but as foreign trade is not the most material circumstance, 'tis not to be
put in competition with the happiness of so many millions.-From Political
Discourses, by David Hume, Esq. Edinburgh, 1752.
21-30 84
Ecorn. Hist
Sotheran
11-6
-26
13639
PREFACE TO THE SECOND EDITION.
7th February.
IN issuing a Second Edition for the purpose of supplying
deficiencies in the first one, and of adding some new matter
that has reached me, I with much pleasure call attention to
a very important and telling resolution of the Edinburgh
Chamber of Commerce, which will be found on page 192.
In a letter on page 198, illustrations are given from
every-day life of the extraordinary procedure in France
as to Bounties. Another comparison may here be per-
mitted. The Board of Trade pleads that, so far as those
on sugar are concerned (it cannot plead the same extenuat-
ing circumstances as to those on shipping), a considerable
part of the loss sustained by individuals falls into the
pockets of British consumers,-the meaning of which is,-
after all the French, intentionally or not, are benefactors,
and the British nation need not complain of such generosity.
Does not the view which I am about to submit resemble
more the truth? I liken the polite offer to give us cheaper an offer
sugar and lower freights, to a proposition which might be wide-awake
made by
an overshrewd solicitor or tradesman to a concern
already established in a thriving and growing business, in
such terms as the following: "You are doing well, and
making money, but you have the trouble of working. I
will set you free from that inconvenience. Let me have the
run and management of your business for ten years: I
will conduct it by my employés in my own name, and I
which the
Caly
:-)
General con-
clusions.
iv
Preface to the Second Edition.
will pay you, during all that time, as much as your usual
gains in years past." Would the concern in possession not
see through such an ignoble offer? Would it not at once
perceive that when it resumed its position at the end of
the term, it would do so in most unfavourable circum-
stances, its aptitude for work lessened, its connections
abstracted, its prestige lost, its accommodating friend
installed in its place and occupying an unassailable
vantage ground?
Among the conclusions at which the candid reader will
probably arrive are these-
1. The inducements and hopes that led us to enter into the Treaty
with France were in 1860 not mainly commercial, and were
too sanguine.
2. Such as they were, we have no like or equal inducements or
hopes presented now.
3. It is difficult or impossible to assign or frame any justification
or excuse for entering into another such treaty, but the very
strongest ones for not doing so.
4. There is an irreconcilable difference between the principles and
aims of the statesmen of the two countries in negotiating so-
called commercial treaties.
5. The French have, since 1860, developed and they continue to
seek contrivances, such as bounties, which render treaty
engagements with them, to say the least, perilous.
6. Their latest bounties are aggressive and avowedly political in
their object, and are directed chiefly against ourselves.
7. With such manifestations of policy, recovery of freedom,
especially of finance, is indispensable. And,
8. Not less is the power to establish regulating or rectifying, or
even retaliatory, import and export duties, invaluable for the
right maintenance of our foreign trade relations.
9. If any treaty of commerce is negotiated in these circumstances,
it should at any time be terminable at a twelvemonth's
notice.
10. There ought to be a Royal Commission to visit the ports and
other seats of industry, and take evidence as to the working
of the French Treaty, and as to the expected effect of the
French shipping bounties, as well as the best means of
counteracting the latter in so far as they are an attack" and
"bribes" (to use authorised designations).
(C
Preface to the Second Edition.
clusions.
11. Means should be devised to reconcile the (at present under General con-
free-trade) conflicting interests of inventors and the public.
12. A small import duty on manufactures, to give a slight tilt to the
safe side, presents a ready way of recovering or lessening
the inequality which patents create between British industrials
and certain or all of their foreign rivals.
V
13. The subject of the rate of wages and hours of labour in the
United Kingdom and the Continent, deserves the attention of
our Legislature.
14. Every law-created inequality adverse to British industries should
be done away with or compensated.
15. Special care should be taken to preserve our shipping, and
especially our lines of packets.
16. The mother country should be free to arrange and establish
whatever commercial relations with the Colonies the near
future may dictate as expedient.
17. Emigration should be directed to the Colonies; and,
18. Lands there should be assured beforehand on inviting terms.
19. The Empire ought to be consolidated.
20. The strength of the nation should be husbanded and organised.
21. In prosperity and peace the national debt should be quickly and
vigorously reduced.
22. There might, with inestimable advantage, be an Imperial Repre-
sentative Supreme Council.
23. The Procedure of Parliament with respect to Bills could with
ease be vastly improved, and much of its work should be
done in the "provinces."
24. A most wholesome conservative change could, in a very simple
manner, be made in the constituting of the House of Peers;
and,
25. The anomalous position of Scotch Peers, and some present
abnormities, could by same means be set right.
26. The Committee of Privy Council for Trade ought to be a real
Board, and in close communication with Chambers of Com-
merce and other like trade associations throughout the king-
dom.
27. The Commission for administering the Patent Laws, which the
Patent Act now in force provides, in the interest of inventors
and of the public, should at once be habilitated and set to
work.
28.
The higher classes of our country, who have much leisure and
admirable training, might, with much public advantage, be
appointed to offices such as that just adverted to. They would
not work less assiduously because they are "great unpaid."
vi
Preface to the Second Edition.
29. The nation, in its commercial ranks, does not exhibit that per-
vasive moderation of life and devotion to work which tended,
under the blessing of God, to make it what it is.
30. Cosmopolitanism is benumbing patriotism, and luxurious
over-regard for the mere present is tending towards “feck-
lessness" and recklessness.
31. All these conclusions or convictions may be held by members
of every political party without fear of compromising politi-
cal consistency. The true patriot and wise statesman will
always recognise that in matters of commerce, as well as in
the grander sphere of national security and honour, party
distinctions disappear from influence and from view. In these
things we are Britons. We regard ourselves only as loyal
fellow-subjects.
32. The time has come for reflection, and, it may be, retracing of
some steps.
But though the subjects of this brochure do not lie
within the sphere of party politics, they are eminently
political. Commerce is a national concern; still more is
cerns itself shipping. It is with political ends the United States, Ger-
National
poli y con-
with trade
and power.
many, and France are shaping their trade and navigation
systems. In fact, that aim is manifest, without being
concealed indeed, throughout the matériel presented in
the following pages which the patriotic reader is invited to
ponder. That our rulers are in danger of some day finding
themselves embarrassed if the commercial policy of the last
decades be persisted in, the writer fears. That policy
and British policy as to national strength and resources
have much in common. He is well acquainted with
the Forth, the Clyde, and the Mersey. Are these, though
with sufficient forethought easily defensible, at present
safe? To put a test question-At the works erected
on Inchkeith, are the guns yet in their place? If not,
where are they? Is not the inference a fair one, most
serious and most alarming though it is, that everywhere,
should war suddenly break out (suddenly, of course), our
ports and shipping will be so much exposed, that a too
general transference to foreign flags will be immediate?
vii
Preface to the Second Edition.
We are so strong in our own esteem that no Government,
Liberal or Tory, has had the courage-shall it be said?
no!--but the prudence to warn, as in fairness it should,
well-meaning capitalists that the Channel tunnel will not
on any account be allowed? That is, our grand and inde-
scribably precious security and source of economy may, from
sheer indisposedness to rise to the occasion, or else from our
overweening eye-shutting and self-confidence, be bartered
away, or more probably given up for nothing, under the pro-
visions of some scandalous treaty or financial engagement,¹ The Channel
and our whole earthly trust, forsooth, left to be placed in
some slender fortifications to be erected at the least possible
expense round the English terminus, which may, perhaps,
without great difficulty, be battered and wrested from us,
and may even be taken by surprise from under ground!
British capitalists are, like many others of the Queen's
subjects, very cosmopolitan, and if the responsible Govern-
ment continue silent, will too readily become the agents of
foreign bureaux for doing work that will be bitterly, but
helplessly, because too late, deplored.
Tunnel.
thicker than
Between family and family, between town and town, Blood is
friendly though their mutual relations be, a line is univer- water.
sally drawn, persons and things on the near side of
which are viewed with more warmth. If it be more than
an ideal line—an ideal fence,—the ground on one side is so
raised that it can be surmounted from the inside with less
difficulty than the outside. This is proverbial in the form
not only of a truth of observation, but a rule of conduct.
Or put it thus: We have always in our mind that on the
1 Without insinuating that bad treaties have been made and sanctioned in
our day, let me advert to the strange story that might be told of the insouciance
and silence that marked the transference by Act of Parliament of the vast and
invaluable property of the British nation, our unoccupied lands, to the Colonies
without retaining a shred of the pre-existing arrangements for these being
applied or sold for behoof of the nation. Happily 'tis not unmitigated loss,
seeing the new proprietors and administrators are the colonial Governments.
Illustrations
from com-
mon life.
viii
Preface to the Second Edition.
near or inner side of that boundary lies a soft lining.
There need not be much difference between the two sides,
but as an ordinary rule, the harder and colder and ex-
posed side is the outer one.
The following résumé should only be taken for what it
is worth. Its design is to show that what individuals in
private life feel a concern for as being something they
possess and mean to maintain, benefit by, and enjoy, is
systematically tended and fended in a manner which in
trade language is called protective, but may rather be called
attentive and retentive. He is a bold man who would
contend that the like practice is not equally, or rather is
not still more, expedient, and as comfortable and promis-
ing, in national affairs. There is no dissimilarity or
contrast between the two classes of cases, much as there is
between modern British methods of dealing with them.
May an old merchant suggest that the French request
laissez faire has been quite misunderstood and mischiev-
ously misapplied among us?
When I rose this morning I alighted on a piece of carpet
set at the bedside to save from impact on a cold and bare
floor. In my dressing-room the bath and washing-basin
were deeper, and capable of containing more water, than was
absolutely required. My clothes and boots were not tight-
fits. For fear of some unsympathetic and superficial reader,
I will pass lightly over the warmth and protection sought
and obtained in the several integuments donned from
head to foot, helpful to my argument as the analogy
might be. The doors leading from one room to another
were not just large enough to allow a person who main-
tains his equlibrium to squeeze himself through. By means
of a heating apparatus, a moderate and healthful tempera-
ture pervaded the house, making a felt distinction between
the air outside and the air within. At breakfast, the cream-
Preface to the Second Edition.
the Govern-
ment from
the
people
private
pot and sugar basin did not contain exactly the quantity Lesson to
that was wanted. The teapot was enveloped in a cosy. me way
Between the sitters at table there was at least elbow-room. manage their
The revolving dumb-waiter had a rim or lip to prevent any- affairs.
thing from falling over. So would the tray have had, if
there were one. There was no stinting of coal in the grate;
the ashes were confined within a fender. The gas was not
burning; but if it had been wanted for work or advan-
tage, it would have been ungrudgingly. Meantime it was
under due restraint within the source of supply. To
exclude sunbeams when not desired there were window-
blinds. To exclude cold, curtains; to exclude ill-disposed
persons, shutters, as well as a lock at the front door. The
book and newspaper which we read, had each of them a
comely margin around the printed portions for the more
proper handling, and as a comfort and a complement. In
the vestibule were I know not how many umbrellas and
sticks for use in rain, or securer footing, or facing and
averting of danger. The gravel in front of the house is
not measured of a width to allow a carriage to stand in
front and no more. In the park, the reader may infer,
were sheep bearing the wool by which nature guards them,
and, perhaps, a mark to indicate whose they are. These
were, of course, prevented from straying, and they do not
exceed the number suitable for the extent of herbage.
Sheep which appertain to other pastures find no admission.
Very likely care has been taken to supply the deficiency of
food occasioned by snow on the ground. Driving along
the avenue, the stems of shrubs on my left were protected
from hares and rabbits, which themselves are by nature
duly protected by fur from cold and other exposure. The
leaves of the evergreens, not having been covered with
matting, have been, in a good many cases, injured by the
frost. On my right, I passed my garden-wall, useful both
ix
K
The State
should do
likewise.
Preface to the Second Edition.
to defend against intruders and to shelter from gales. On
the other side of the wall are in operation a variety of
means and mechanical appliances for giving trees and
plants of many a kind complete shelter or sufficient heat
or desired erectness, and this care not chiefly, if at all,
spent on what may warrantably be called exotics. Along
the garden's side runs a stream, access to which is enjoyed
only by persons who have a claim. This stream is by
means of stone works and banks kept within due bounds.
Yonder are a clump and belt of trees. Those on the out-
side, exposed to the blast, are stunted, whereas those
within, being thus designedly shielded, are tall and thriving.
The fields along the roadsides were secured by gates, to
keep out what was not wanted in the fields, and to pre-
serve what they produce or rear. If it had been required
at the time, the usual precautions against partridge-
poachers might have been seen. The footpath was wider
than for the bare necessity of the case might suffice. The
cottages had their eaves projecting far enough from the
walls to hinder the rain from falling where it is not
wanted, and gutters and cisterns to carry and keep it
where it is wanted. There was at one place snow-drift,
because the hedges and fences were not in position and
condition to serve as adequate screens.
I passed near the grocer's. If I had gone and bought
a pound of tea or sugar, the turn of the beam would
have been in my favour, and the smiling countenance
behind the counter would have shown me my custom
was beneficial and appreciated. Not unlikely I might
have seen in the shop a commercial traveller soliciting
orders as a great favour, or expressing heartily thanks
while booking them. He could tell me of his habitual
assiduity in the exercise of watchfulness to prevent his
ground and business falling into other hands; and
X
Preface to the Second Edition.
lents pro-
tection and
hold.
xi
within the bounds of prudent and comely reticence, of The equiva-
the skill and energy of the company he sells for to keep keeping
hold and take the lead, and exclude from incursions in
no point of view good for their profits and success,-a
competition on the part of fellow-countrymen whereof he
would testify there is always enough and to spare without
invoking foreigners. Between the city and village there
is a toll-bar, where he and I cheerfully pay the small tax
that is levied as a fair charge, to make all who use the
road, and all the merchandise that is carried along it, pay
for the benefit they get, viz., admission to the city which
is obtained. The collector, great-coated (like myself), and
not content with nature's provision for the warmth of his
head, comes out with a hat or cap or cowl from a cottage,
which is (like my own house, as well as the cottages
and the shop which I have mentioned, and porters' lodges
passed by, which I might have mentioned by way of illus-
trating the principal point for which I adduce these mani-
fold illustrations from daily life) sufficiently roofed, and is
well-plastered and provided with windows that exclude
cold air and drafts, and with a suitable porch.
How natural in such every-day circumstances for one
to reflect thus: In ordinary life, in all directions, at all
times, individuals, sedulously and as a matter of course,
contrive and call into play adequate appliances for keep-
ing, and keeping right and safe, and as they wish, whatever
they value. The nation values and desires to keep its
people, and good employment for them. The nation can
do what it has its heart set on. Why is it not done? Is
not the cause to be found in want of logic? Some even of Bad logic.
our leaders appear to reason thus: Free and large importa-
tions of corn and cattle are good: why not free and large
importations of all other commodities? Importations of
raw materials are good: why not importations of articles
xii
Preface to the Second Edition.
manufactured?
Importations of manufactures that we
tions.
mere
False deduc- cannot make within the British Islands are good: why not
of those that we can? Manufactures that are altogether
useful and are used by all classes, should be admitted from
abroad free of duty: why not those that are
luxuries, or even of questionable advantage, or are con-
sumed only by the rich? To charge a high duty on
certain imported commodities must, inasmuch as there are
like products of the British soil, injuriously raise the
prices of the latter: why not abolish duty even on articles
that are not produced in the United Kingdom, and whence
large accessions to the revenue could be obtained easily
and equitably? High duties, being protective, are objec-
tionable: why not do away, except in a very few cases.
that will not disturb symmetry, with every vestige of
duty, even in the many cases where the sweet simplicity of
such a clearance takes away that rim or edge which common
fairness in some instances, and in every instance due con-
sideration for our people and through them for our national
interests, demand ?
Helps to
earning is
better than
to consum-
ing.
S
B
Distinguishing between producers and consumers,
between money-earners and money-spenders, as if they
were different sets of persons with opposing interests,
a narrow humanitarian theory of statesmanship con-
cerns itself to defend the latter as being the weaker and
the most numerous, as well as a peculiarly meritorious,
section of the population, at the expense of the former,
who, after all, are in very deed mostly the same indivi-
duals viewed in their best character and, so far as they are
not the same, are fellow-citizens who confer on the
community benefits, exceedingly various and many, that
are indispensable for the welfare of the nation, and
speaking generally, but not the less accurately, for the
welfare too of the others, the few who consume and
Preface to the Second Edition.
xiii
spend without labouring or earning. It would need Fallacies.
more space and time than we can afford to prove, but
this we think it would not be difficult to do, that sub-
stantial, yet rigid, justice is done to all subjects of the
Crown by fostering, though it may be at some cost to
many individuals, industries which are natural and legiti-
mate, and by drawing no line between earners and spenders
if any, a line that favours the former of these rather
than the latter. This carries the memory to another
cluster of fallacies arising from spurious logic. The
menaced industries survive. They do; but who pre-
dicted they would come to a sudden and immediate end?
Who could so predict that knew the building and organis-
ing of numerous competing establishments must needs be a
gradual process and a more or less slow? Again, it is
observed that some protected manufactures in countries
that protect are feeble and unhealthy, and hence it is
concluded that the feebleness and ill-health arise from
their being protected; whereas, if we inquire into the facts,
we probably would discover that pre-existing feebleness
was the cause for the protection being instituted, or very
likely there was no prior existence of these manufactures
even in feebleness, and the protection had for its object the
introduction and forcing of such plants, just as we grow
vines under glass in our unsuitable climate. The facts of
the present time disprove much confident dogmatism of
the past.
But, indeed, why are we so prone to forget that it Past history.
was under this so-called baneful influence that Britain's
manufacturing pre-eminence was attained, as, indeed,
foreign economists contend? While I say this, I do not
advocate the protectionism of bygone days. Only let us
not go to the other far more hurtful extreme. We have
had too much of that impartial and judge-like, instead of
fatherly and friendly, statesmanship and finance. Our
or,
Preface to the Second Edition.
position.
A mistaken legislators, as if sitting on a bench to administer justice
between claimants before a tribunal where favour and
feeling would be out of place, repudiate every vestige of
distinction between British manufacturers and foreign, and
regard their functions as equally pertaining to the main-
tenance of industries that exist at home and the practical
furtherance of rival and subversive ones abroad.
xiv
On our several sheets there has been too frequent
occasion to use the word cosmopolitan. I understand by
that term, "having little or not any more regard for one's
own country than for all other countries; being satisfied
to act on the principle that one's own country has not,
when their taxes are paid, a higher claim for service on its
citizens than those of any other country." World-wide
philanthropy is commendable; but is it not best exercised
by building up and strengthening such a country as ours?
Is it not fair to extend the affection, in virtue of which
members of a family with warmth help one another
Nationalism. before members of other families, to nations, and maintain
that subjects of the same sovereign ought to consider one
another's welfare before that of the subjects of other
sovereigns? This, at any rate, is clear: only by acting in
this manner can all human beings enjoy the advantages of
family and of national life, until the day dawn, if ever it shall,
when distinctions of family and nation shall cease to exist
and the whole human race shall be merged in one as yet
inconceivable unity. A Christian Power like the United
Kingdom, or let us rather say the British Empire, we may
well hope will, in the future even more than in the past,
be the pioneer over the globe of liberty and peace and
religion.
Cosmopoli-
tanism.
Other Powers are growing in extent of territory and in
the number of their people. These are not the times,
therefore, for Great Britain to lessen her dimensions, and
Preface to the Second Edition.
able.
population, and strength. On the contrary, let us show our Be teach-
self-respect and sense of responsibility by being ready to
learn, whether as to commercial policy or higher statesman-
ship, from France and the United States. The former of
these Powers appears to have taken valuable lessons out of
our book; the two nations almost appear to have exchanged
characteristics. As to the States, they, like France, are
willing to pay taxes and pay off debt in a manner which
we will do well to take to heart and imitate.
XV
I counsel a stout heart undismayed by the formidable
array of difficulties which weekly emerge. It is quite
clear that our country must be strong, and must be in-
dependent, if she is to stand her ground and deter other
powers, not to speak of some subjects of the British
Crown, from taking liberties which our supposed weakness
and evident forbearance encourage. It was not always
thus. It must not be now. In the order of Providence,
ample power of defence is a security for peace, and against
disturbances and alarms which nations (for I speak not of
individuals) surely are entitled and expected, may I not say
require, to have ready for exercise.
It is safe to be impressed with the fact that neither for
the pursuit of peaceful commerce nor the circumstances of
war, are the British Islands so very favourably situated as
we used to think them, and as they actually were.
brochure is.
A correspondent well characterises the mass of rough
material which is brought together in this brochure as What this
"evidence." Very much, or indeed chiefly, in that character
is it presented. The considerate examination of the facts
and opinions which are so abundantly, though loosely
aggregated whether as evidence, proofs, or authorities, is
work for an earnest student who desires to master certain
questions that are not much understood, and from which
too many persons recoil. Such a reader will not blame me
Preface to the Second Edition.
overmuch for carelessness in compiling, and will make due
allowance for the leave I take to make excisions and use.
italic type in the numerous extracts. The headings of
these are generally given in the words and sort of type
used in the original.
xvi
A CONCLUDING APPEAL TO EARNEST SUBJECTS OF THE QUEEN.
An ex-M.P., one of the very few the want of whose patriotic services in St.
Stephen's occasions deep regret, kindly writes that he will keep my brochure as a
magazine of information. It is, indeed, a sample small collection of superabounding
war material" for assaults which it may be necessary to deliver against reputed
strongholds of a statesmanship or policy that, if it has not been at fault, is not
now implicitly relied on as armed and arrayed up to the requirements of the
period on behalf of vital imperial interests. May I not hope that this brochure
will also prove a match that will ignite to do its work at the right time and
place in the service of our country and of political truth? In these pages rampant
individualism has been deplored. We must revert to more nationalism. Good
it may (conceivably) be for the merchant to do a short-lived rattling trade,—
good for the shipowner to sell his ships at a handsome price, or sail them under
a foreign flag,-good for this and that band of operatives-a few among the
millions of persons-to migrate with high wages in prospect, or for agricultural
labourers to say farewell to their native land and become citizens of some other
State. CAN it be anything but EVIL for the British Empire to lose such and so
great productive, consumptive, tax-yielding, propagating, and defensive wealth
and power?
66
A widely circulating and zealous London evening newspaper of 23d February
contains the following:
"The report on the immigration to the United States during 1880, just issued
by the Bureau of Statistics at Washington, supplies food for serious reflection.
More than half a million of human beings, or in exact numbers 585,000, arrived
at the other side of the Atlantic from Europe in the twelve months, and of these
327,000 landed in the port of New York. The influx of 1880 exceeded the total
of that of the three preceding years. It is a new fact that upon a large scale
the immigrants now arrive with prepaid tickets to a given destination, indicating
foresight, means, and organisation. Of the same 327,000 arrivals, 113,000 were
from the United Kingdom, and 105,000 from Germany. The total body is de-
scribed as being in an unusually good physical and financial condition.' In
other words, Europe is being depleted of its manhood and its wealth to help on
the marvellous progress of the great Republic of the New World. . . . It has been
computed that the average capital represented by each immigrant is not less
than £100 sterling; that is to say, that the cost of infancy, education, food,
clothes, and industrial training has amounted all round to that sum. Regarding
each immigrant as a commercial commodity, the arrival of 585,000 in 1880 was
the same as if Europe had made a present to the United States of sixty millions
sterling of goods; or, to give another illustration, in substance, as if Europe had
taken upon itself the whole burden of the Federal expenditure for twelve months.
It is a pity that the stream of emigration could not be diverted to our colonies,
where British-born people would be still under shelter of the home flag.
.. We
may need our bone and sinew yet; but the hold peasantry is going, and as
Goldsmith sung over a hundred years ago, the bold peasantry, when once de-
stroyed, can never be supplied.'"
On the above I remark, that most extraordinary as the figures it presents
are, they fall prodigiously short of the reality, for they appear to leave out of
reckoning the vast numbers that enter the United States by the St. Lawrence
route, and they estimate each emigrant at what is, in the opinion of competent
persons, much under- perhaps not a fifth of his "value," which surely, includ-
ing the capital he takes, reaches £500 a head,
•
•
PREFACE TO THE FIRST EDITION.
Liberalism.
THE Notes that follow, although they have for their basis
the recent declarations of the Board of Trade as to Bounties
allowed by the French Government on sugar, make greater
reference to the Bounty Scheme by which our good
neighbours are seeking to play the same game aggressively
on British shipping, and still more to the negotiations
which are in progress for a new Commercial Treaty with
France. They exhibit reasons which induced the writer,
twenty-one years ago, to oppose the Treaty that is now in
force, and objections which experience and reflection have
only confirmed and deepened. A Liberal throughout life, Tenets of
he cannot admit that the question of free-trade (in manu-
factures already well established among us, and wherefor
other countries have no natural advantage over our own),
scepticism regarding which he expresses freely and justifies
by abundant extracts, may be regarded as a tenet and test
of Liberalism. It was not formerly, it should not be now,
both for the sake of the nation, and in order to prevent
begun or threatened estrangement of the masses of the
people. Having been a long while retired from business
and active political life, and living in the country with
plenty of work to do, he has not easy access to sources of
information that would enable him to render his appeal
more conclusive and forcible. There are no doubt rich
stores of information, if not more sadly demonstrative and
clamant, at any rate more recent, and in scope more com-
prehensive, than those from which, being mostly at hand,
b
xviii
Preface to the First Edition.
he has drawn. He wishes his self-imposed task were better
discharged. It is undertaken because so few of the many
persons of weight who share his views show themselves able
and ready to devote time to the vindication of deep con-
victions on the subjects he calls attention to. He thanks
Mr. Frederick Brittain¹ for a valuable work on British
Trade and Foreign Competition, and other correspondents
whose assistance he values, and part of whose letters he
has turned to account.
-
desiderated.
The writer lately proposed to the President of the
Financial Reform Association that a series of letters in the
interest of truth should be written and published, wherein a
committee of that body would vindicate the principles of
A discussion free-trade as at present understood and applied, and a
respondent should state difficulties or doubts in order to
give an opportunity for these being removed, if this be
possible, or their strength exhibited if the argumental force
shall be found to lean in that direction. The friendly
challenge was not accepted. Surely the question should at
once be resolutely faced. There are many who would like
to know the pros and cons. It never up to this time has
been tackled and settled by facts and reasonings. A fond
theory and fanatic engagements, whose inevitable effect is
to favour foreigners more than the Queen's subjects, and
to encourage and facilitate transference from the United
Kingdom of industries that employ and maintain a
teeming population, stand self-condemned. Patriots
should strengthen the hands of the energetic Chancellor
of the Exchequer and the experienced Foreign Secretary
in endeavours to recover that freedom which has for
twenty years been compromised.
Advantage is taken of the opportunity to circulate two
papers read to the Association for Promoting Social Science.
President of the Sheffield Chamber of Commerce,
Preface to the First Edition.
In them are suggested amendments of our INTRA-IMPERIAL
RELATIONS and of the HOUSE OF LORDS--subjects of great
and urgent importance. A number of extracts which, if
studied, will be found deserving of much attention, com-
plete nostri farrago libelli.
xix
The whole British nation desires to maintain and
deepen the friendship which, for a thousand years, has
existed between Scotland and France, and still more that France.
which happily exists between the United States and the
United Kingdom. We congratulate these neighbours and
kinsfolk on their prosperity, attained under a commercial
régime which is commonly here regarded as hurtful.
States.
As to the States, one of the main reasons why we, the United
inhabitants of this the old country, ought to desire the
recovery of commercial freedom is, that thereby we shall
be in a better position to negotiate and establish equal
enjoyment of the rights of citizenship and conjoint dis-
charge of its duties throughout the empire, one of the
best results of which grand achievement of patriotic states-
manship may be the formation and exercise of such an
understanding and relationship between the two Anglo-
Saxon peoples as will stimulate and enable them, by
Divine favour, to perform towards mankind those beneficent
services which the near future appears likely to call for
from both, and which so natural an alliance and brotherly
world-wide unity of aim and action will render easy and
fruitful.
Recent indifferent success or popularity of British
political activity in Europe and Asia points our best
hopes and affections to the continents of America, Africa,
and Australia, as spheres for aspirations and operations.
nobler, more legitimate, and more promising, which cannot
but strengthen our influence and impart new impulses.
Consolida-
tion of the
Empire.
Preface to the First Edition.
The spirit of thoughtful and fond subjects would whisper to
our gracious and admirable Queen through her constitu-
tional advisers," And who knoweth whether Thou art
come to the kingdom FOR such a time as this?" The
stones of a goodly edifice are prepared; the workmen are
ready. How gladly would we hear the throne declare-
"Now the Lord my God hath given me rest on every side,
so that there is neither adversary nor evil occurrent: and,
behold, I purpose to build."
The best of resolutions and plans may be formed too
late. The hour for construction may be postponed too
long. Within the city this and that voluntary watchman
sees-this and that wakeful mourner hears-in the dark-
ness and stillness a muffled movement whose meaning is
unmistakable and ominous. But the population is partly
sunk in deep sleep, partly absorbed in frivolity and ill-timed
mirth. Who will arouse the citizens to consciousness?
The keepers give no call; what alarms the few, they heed
not. The leaders, WHY their inaction?
XX
DREGHORN CASTLE, 12th January 1881.
xxi
LETTER TO A GREENOCK CORRESPONDENT.
DREGHORN, COLINTON,
EDINBURGH, Feb. 17, 1881.
Judicious
manufac-
DEAR SIR,-In your letter of yesterday you say that
Cries in a Crisis has been quoted to show that I am
opposed to countervailing duties. This must at the utmost
be regarded as an inference; I cannot call it a correct one.
On principle I would be in favour of these. But I do see
great difficulty in applying the principle. There is, in the
first place, uncertainty as to the amount of the bounties
which are to be countervailed. There is, in the next place,
an invidious character in duties, however justifiable,
directed against any particular friendly Power. I have
never required, having been out of business and not in
Parliament, to master the question how best to countervail.
Any person reading Cries in a Crisis will see plainly enough
that I am in favour of the principle of countervailing protection of
duties, not on raw materials nor on the main articles of tures.
sustenance, but on manufactures and like industrial products
which can as easily and as well be grown or made in the
British Islands. I draw a distinction between whatever is
produced in circumstances which necessarily imply limita-
tion of home-drawn supply and, therefore, enhancement of
cost or price, and whatever is produced or is produceable
in other circumstances. There is, e.g., in these islands a
limited area on which cereals or root-crops can be grown or
stock can be reared. If a duty were laid on the importa-
tion of these, prices would rise and rents too, consequently
neither farmers nor consumers would be in so good a
position as they are now. There is, however, no end to the
number of shipbuilding yards or sugar-houses or cotton
mills that could be erected in the United Kingdom. There
xxii
Countervailing and retentive duties:
is room enough for any number. Even though a protec-
A small pro- tive duty were imposed, there would, therefore, be super-
required by abundant competition, which would preserve the population
tecting
equity.
from what we are accustomed to call monopoly prices.
I have specified in the above-named brochure certain
inequalities or burdens, affecting the cost of production,
that are law-created; in particular, the taxes exacted by
patentees, income-tax, limitation of the hours of labour.
Surely it is equitable that, if the cost of production is raised
in our country by these requirements of the State and of
philanthropy, the State, which, without their wishing it,
enacts what causes the addition, should take duly into
consideration the best means of preventing the manu-
facturers, whom it ought to foster, and their employés from
suffering by this legislation. I have gone further and
argued that another existing fact ought to be recognised :
British operatives, to be neighbour-like and to comply with
the requirements of their position, do not subsist in the
same style as those with whom their labour comes into
competition on the Continent, and they accordingly receive
higher wages. It appears to me to be plain as a proposition
of Euclid, that since master manufacturers pay the
current rate of wages, and that rate is higher than the rate
on the Continent, there is an inequality which, though not
created by law, the law may fairly, and I am inclined to
add, must in fairness, recognise, providing that it neither on
the one hand shall disenable British competition by the
master being at a disadvantage, nor on the other operate
so as to lead to his reducing wages and therefore the com-
forts of his operatives.
I am not in favour of duties which are intended to
countervail being calculated closely as mere questionable
and grudged equivalents, for I am sure that there must be
burdens falling on Britons which we do not know, or
}
how justified, and when they may be relaxed. xxiii
towards the
which any day may come into existence. I therefore dis-
approve of unsympathetic, heartless equality of treatment
as between British subjects and foreigners. My opinion is
that the former, on all rational and kindly principles such
as are acted on in every-day life, are entitled to a tilt or
leaning in their favour. Their own countries do as much A leaning
for foreigners so our doing it for our own people may be home side.
said to be a mere balancing of the account or equalising of
conditions. I might speak much more emphatically than
this, for foreigners are indeed very largely favoured and
well screened in whatever competition they have to
encounter. In truth, their Governments are very assiduous
in endeavours to keep all the business that subsists in their
countries, and to attract as much more as they can get,
even by courses which our principles or our pride cause us
to disclaim or, to speak plainly, have caused us to abandon,
probably because a good and legitimate thing had been
abused or at any rate no longer could be continued on the
plea of its being absolutely necessary. We present these
considerations with diffidence or hesitation, not because we
have much fear that they are indefensible, but because the
very mention of them is like presenting a piece of red cloth
to an infuriated bull. There is undoubtedly here and
there something like feeling rather than reasoning in the
opposition which is offered when dispassionate presentation
of such-like arguments is attempted. While I am opposed
to the equality which, as a general rule, I reprobate, I am
ready to admit that if a country with a population as great
as our own, say France, or Germany, or the United States,
would make a Treaty with us on the principle of no pro- Whiterea-
tectionism on either side, it might be beneficial to both tensil
nations. Such, however, is not the character of our Treaty
with France. The advantages greatly, tremendously, pre-
ponderate on her side. I favour equality between British
com-
mercial
are
defensible.
xxiv
Inequalities within the British Isles.
subjects: that is essential. But it is not dominant at
present very much in consequence of the other fantastic
equality we have avowedly, and, as I have just alleged,
fallaciously, established between the inhabitants of the
Inequalities British Isles and foreigners. The geographical position of
the
United
Kingdom. our different seats of industry is so different, (to take a
notable instance,) that while some of them can supply
London as well as some near ports on the Continent
can, most others are very much further off from that grand
market; the length of the voyage and the cost of freight is
necessarily greater, often very much greater. One has
only to ponder this element in the question, with a map of
Europe before him, to become satisfied that practically
and very seriously the population over a large surface of
the kingdom must, under our attempts at absolute free-
trade in manufactures, be continually conducting their
businesses at a disadvantage. The evil would not be so
great if the metropolis, containing a population hundreds
of thousands larger than that of Scotland, and nearly
approaching that of Ireland, were not situated, as it un-
fortunately is, at the south-eastern corner of England and
approached by a river entered still further east. So, again,
as to the supply of coal, some manufacturers on the
Continent are more favourably situated than many in this
country with respect to supplies. It appears to be a fair
question whether legislation should not aim at adopting, so
far as it is applicable, the principle of postal and telegraphic
communication,-that is, all persons and districts in our
islands should be looked upon as entitled to the benefit of
something like solidarity-equality—and in no case should
the Continent be treated better than the greater portion of
them is treated.
To sum up, I would think it good policy for our
country to impose a duty on all rival manufactures suffi-
Advantages of our foreign rivals.
ciently high to warrant belief that even foreign bounties
would be harmless.
XXV
that should
tenderly.
I have in my brochure laid some stress on another dis-
parity which is too lightly regarded,—I mean the difference a difference
between the circumstances under which British and Con- be dealt with
tinental competitions are conducted. The British estab-
lishments are mostly old, or at any rate not new, and they
are carried on under occasional disadvantages either arising
from their being originally placed in a cramped locality and
built on a small scale, the inconvenience of which, stated
in money expenses of manufacture, is annually formidable
enough to be felt, but not so formidable as to necessitate
transference to better localities, for which indeed there may
not be adequate capital at command, or else arising from
the manufacturer's not culpable succession to ignorance and
virtual impossibilities that prevent complete perfection of
skill, machinery, operations, and economy, such as often
may or must render the average conducting of industries
among us (who are the people of an old country) not up to
the standard reached by the exceptionally well-equipped
and organised establishments wherewith they compete, these
being the largest and newest and most perfect ones on the
Continent, which are besides able to deluge our country
with surplus goods, favoured as they are with monopoly or
exclusive advantages at home. They occupy a vantage- Our rivals'
ground for competing with us in the markets of the ground.
world by their possessing, as a base of operations, the
command of their home market. The effect of this will
be too probably an ascendency which will progressively
advance their position so far as to extensively displace
us ere a very long time shall elapse, and much earlier
if unhappily our country shall be involved in a great war What if war?
and serious difficulties that, if they come, are too likely,
and, indeed, are certain, to disturb the smooth flow of our
vantage
xxvi
Against relinquishing our advantages.
streams of trade or to raise the remuneration of labour by
diminishing our population available for the arts of peace
or to subject commerce by land and by sea to heavy taxes.
and burdens and restraints. Is our free-trade fit to stand
the strain of a severe and protracted struggle? Some cos-
mopolitans among us, though, will say, "Can't help this:
let the weaker go to the wall." Would that, however, be
wise and good for our country? Would it be fair and
considerate? Surely it were better to have our industries
preserved, even at the risk, if it be so, of some trifling and
inappreciable incidence of difference in the price of produc-
tions, a difference in the existence of which I, for my part,
do not believe. Whatever be our prospects in this respect,
and however politic it is to look every (even though it
appear to be an improbable) contingency in the face, all I
Why relin- maintain is, that in any case it is absurd to relinquish in
favour of the French our own good position presently
held with advantage, our heaven-given vantage-ground.
We have allowed assaults to be made on it, but only a few
of the outworks have been-not wrested from us but-
yielded up. The passing of the French Shipping Bill, and
a movement of which I hear among those who used to be
looked to and leant on as the staunchest of the staunch
among the subjects of the Crown, our shipowners, inculcate
reflection, and should stimulate inquiries, and evoke resolu-
tions to adopt, at once, measures that have the character of
effectual to commend them to the nation.
quish our
good posi-
tion?
Before I conclude this letter, allow me to offer con-
gratulations on the success which has attended the
Association's endeavours to call public attention to a class
of questions which hitherto has received scant attention
or has been entirely overlooked.-I am, dear Sir, yours
faithfully,
Imperial union and Colonial lands.
xxvii
colonies.
P.S.-I do not know what your political opinions and
predilections are, and hail the circumstance as evidence
that the movement you are engaged in is not conducted on
party principles and with party objects in view. To such
politics let us allow no place when the great questions of
commerce and shipping are dealt with. There is another
vastly, yes, still more, important (and I dare not call it less
urgent) subject-let us not make it a question, a thing
debateable—introduced in a special paper amid the miscel-
laneous fare of Cries in a Crisis,-the Empire and Emigra-
tion. I wish leaders among the British operatives would
realise the serious danger there is that not only must they
lament in vain regrets their loss (referred to in a note to Lands in the
the Preface of the second edition) with respect to national
ownership and control of lands awaiting occupation and
reclamation in the colonies, but that the colonies themselves
will be found held so loosely, or set so coldly, or valued so
lightly by "the governing classes," that a semi-alienation
may accrue—accrue more or less through sheer want of the
attention of statesmen, who are too ready in all parties to
admire or go at the shadow, and neglect, and may drop,
the precious, unique,—if lost, irrecoverable,-solid substance
of imperial union within some attainable combination of the
future. It is very striking that, while the British Parlia-
ment and press and people are so unconcerned as to the
grand aim and attainment of our nation's former policy, Colonial
colonial possessions, Continental nations now are pointing
to the benefits we derive from them, notably France and
Germany, and in a degree (strange though it is) the
United States, and are earnestly at work or looking out
to secure the like! Do get some of your fine fellows to
give the relations between the different portious of the
empire a principal place in their thoughts and acts, lest
there be a melancholy drifting apart.
policy,
xxviii
I adduce, omitting others, the following weighty con-
siderations :-
(
The good of the Colonies.'
Inducements 1st. If a warm and healthy reciprocity of feeling is to
to improve
the relations subsist, and become more practical and beneficial, between
with the
colonies.
the colonies and the mother country, the outflow must be
maintained, and this through encouraging supervision and
on favourable conditions.
2d. Care must be taken that emigration, like that
from the eastern to the western of the United States,
implies continued equal citizenship without loss of any of
the privileges which it involves, but rather making these
more intense and realisable.
3d. The present time, when Irish questions are in the
ascendant, is favourable.
4th. The colonies appear on their part inclined to make
overtures.
5th. A choice between occupation in land and industrial
employment in factories, economical maxims favour.
6th. The increasing wealth of the country would by
this find a suitable and worthier outlet.
7th. The higher classes could continually lead bands to
found, in outlying parts of the empire, noble communities
on a sort of clan principle, finding or rather forming there
permanent homes-homes that India fails to present.
8th. In case of serious impairment of our manufacturing
prosperity, here is something still better to fall back upon-
10th. Something which would in the best of ways in-
crease the best of consumers for British manufactures.
C
Sp
CONTENTS.
Preface to the Second Edition,
Concluding Appeal to Earnest Subjects of the Queen,
Preface to the First Edition,
Letter to a Greenock Correspondent,
PS. on Imperial Union and Colonial lands,
•
I.
Letter to the Secretary of the Board of Trade on French Sugar and proposed
Shipping Bounties, and the proposed French commercial Treaty, in relation
to Free-trade.
The Board's letter to the Workmen's National Executive Committee for
the abolition of foreign sugar-bounties,
Inadequacy of the Board's constitution,
Importance of sugar-refining trade,
Comparison with textile manufactures,
Different kinds, and value to the State, of labour,
Capital, and number of men, employed in sugar-refining,
Importance of maintaining employment, .
Lump-sugar trade nearly extinguished by foreign competition and
bounties,
•
Unequal competition hinders improvement of manufacture,
New foreign establishments compete under special advantages,
Consideration due to home manufacturers,
Analogies from common life,
·
•
The allegation that duties can only be imposed for revenue,
Board believes free-trade policy has caused national prosperity, .
True causes thereof,
•
Unequal Treaty made with France,
Discussion thereon in Liverpool Chamber of Commerce,
Anticipations entertained by Sir Robert Peel and the Anti-Corn-Law
League as to the wages of labour,
•
·
·
•
Treaty objected to because disregardful of shipping interests,
Mover's (Mr. Danson) speech,
What cheap food really led to,
Dangers from manufacturing prosperity,.
Confident conduct of English manufacturers,
Free-trade in manufactures was not a logical complement of free-trade in
foods,
Favourable position of United Kingdom as a manufacturing country,
This was abdicated,
·
•
•
Anticipation that France would adopt free-trade,
Seconder's (Sir William Brown) speech,
Conscious "sacrifice" made in order to allay ill-feeling in France,
·
PAGE
iii
xvi
xvii
xxi
xxvii
1
1
1
90 00 19 -
2
3
3
3
w w
3
4
4
4
10 10 co
5
5
6
667N
8
со со со
9
9
9
9
9
10
10
XXX
Glasgow paper's severe condemnation of the Treaty,
Issue of the discussion,
Mr. Gladstone's clearing away of Customs' duties,
Doubt whether Mr. Cobden would now support a like Treaty,
Contents.
•
Cobden Club publications,
Cobden's defence of Treaty to his constituents,
His remarkable avowals, .
Professor Rogers' confirmation thereof,
M. Thiers' desire for more freedom than the Treaty allowed France,
Lesson for us,
Discussion on a proposed new Treaty in Manchester Chamber of
Commerce in 1872,
Unfavourable Report by Messrs. Mason and Slagg, 1872, in which all
commercial treaties are reprobated,
Opposition in France,
Lord Salisbury's address to Manchester Chamber of Commerce, Oct. 1879,
British negotiators' hands tied by free-trade,
Expectations of Sir Robert Peel and Mr. Gladstone,
Postmaster-General's opinions of French Treaty and commercial treaties
in general,
·
•
Exemption from freight is only an occasional protection,
Individual and class interests unduly regarded,
Combinations,
•
•
Mr. Bright's moderate expectations as to free-trade in United States,
No "turn of the beam" is allowed in favour of home productions,
Superior advantages of French rivals,
Board's rather strong emphasising of " consumers,"
Employment elsewhere, if found, what surrenders it involves,
Emigration,
·
·
•
Cessation of Treaty would cause no very great inconvenience,
Great aims or probable effects of French policy,
They extend to service in war,
Weakening of United Kingdom,
Our colonial relations affected,
French management,
Freedom of finance ought to be maintained,
Probability that France will succeed,
An analogy from Universal Peace Crusade,
Shipping bounties,
•
·
•
Į
►
·
Little emigration from France, and why,
Foreign nations seek home employment for the population,
Instance from copyright negotiations with United States,
A possible effect in printing trade,
Increased employment a continual necessity,
Comparison of United Kingdom with United States,
Value of "customers,"
Sir Alexander Galt's appeal,
Our exports to and imports from France,
Our imports from France mainly commodities producible in United
Kingdom,
Our exports are lessening,
·
•
•
•
#
•
•
•
•
·
•
•
PAGE
10
11
11
11
12
12
12
13
14
14
14
14
15
15
16
16
16
17
17
17
18
18
19
19
19
19
20
20
20
20
20
21
21
21
21
22
22
22
23
24
24
24
24
25
25
26
26
Cosmopolitanism among shipowners,
Arguments brought forward by Board,
Subsidies to steam lines of packets,
French export duty on rags under the Treaty,
Fisheries under the Treaty,
Coal under the Treaty,
One-sidedness of the Treaty,
Advantages it assures the French,
A shrewd condition in the French patent law,
Income-Tax as a differential duty,
A small equalising duty required, and more consideration for establish-
ments existing among ourselves,
Effect of British legislation as to immature age and hours of labour,
Working and advantages of a small protective duty,
British Government a party to differential treatment,
The inequality caused by patents,
Growing cosmopolitanism,
Illustration from racing,
·
The better way of maintaining friendship with France,
Shrewdness of French system of "general" duties,
The currant duties, and effect of their abolition, .
Shipping bounty scheme is unprecedented,
Disappointment as to French Treaty's consequences,
Mr. M'Culloch opposed to commercial treaties,
Board's views as to reciprocity and retaliation,
True view of French bounty scheme,
Trade questions lie outside of party politics,
What leaders of fashion might do,
Contents.
•
Scheme's popularity in France,
The propagandist spirit,
Interests of West India planters,
•
•
Case of Coventry,
Consul Bernal on French shipping bounties,
Lord Granville's answer,
Mr. Chamberlain's experiences as a manufacturer,
Remarkable calculation,
Argument deduced from agricultural distress,
Mr. Currie on the interview regarding the shipping bounties,
French Treaty,
Positions we occupy and should escape from,
True Imperialism,
·
•
·
·
II.
Mr. Chamberlain's speech at Birmingham, 28th December 1880, with
comments on it and proposed French shipping bounties,
I
•
•
→
D
•
•
III.
On adapting the relationship between the mother country and her
colonies to the present circumstances of both,
Remarks on free-trade,
•
xxxi
PAGE
26
27
27
28
28
28
28
29
29
29
30
30
31
33
33
33
33
34
34
34
35
35
36
37
37
38
38
39
39
40
41
41
41
42
43
44
44
44
45
45
46
47
48
xxxii
Value of an emigrant,
Greatness of our Empire,.
The Empire's requirements,
Rightful claims of the colonists,
Negotiations should be opened up with them,
The present time is opportune,
Supreme Council proposed,
Its constitution,
Difficulties in the way of an Imperial Customs- Union,
Present duty of Statesmen,
Recent article in the Times,
•
•
IV.
Improvement in the framework and working of the Parliamentary
machine,
Better procedure with regard to bills,
More control of provincial matters outside the Parliament,
Recovered uses of the House of Peers,
Representative element wanted therein,
Contents.
Exclusion of Scotch Peers from Parliamentary service,
Good influence on House of Lords and Commons,
Lord Advocate's paper on "Home" Rule for Scotland,
Grand Committees,
Parliamentary papers,
""
Ribbon trade,
Elastic fabrics,
Linen and jute trades,
Glasgow trades,
Mineral oils,
Iron,
Leicester trades,
Cotton trade,
Earthenware,
Salt,
•
V.
Value of home trade and manufactures,
Value of emigrants (note),
A calculation of the effect of short hours of labour on the cost of
manufacture,
•
·
•
Importance formerly assigned to commerce and manufactures, and unveri-
fied anticipations of what the trade with France would be, .
FIRST APPENDIX.
A.-Extracts from The Life of the Prince Consort regarding the French
Commercial Treaty,
B.—Notes (1860) on French Treaty, by Mr. Macfie,
C.-Comparative analysis of importations from France,
of exports to France,
""
D.-Extracts from reports on working of the French Treaty, presented 1878,
•
•
•
·
PAGE
49
49
50
50
51
51
52
53
54
54
55
56
56
57
57
58
58
59
59
59
60
61
62
63
64
65
66
70
71
74
74
74
74
75
75
76
77
78
79
79
M
Navigation questions,
Woollen and worsted trades,
Tabular statement, .
Agricultural machinery,
Perfumery,
D
Contents.
Paper trade,
Fancy biscuits,
Tin and tole plates,
Plate-glass, .
Reports made by delegates of British Chambers of Commerce,
Woollen cloth manufacture of France,
Iron and hardware trades of France,
Linen yarns,
E. Mr. Brittain's letter to the Chairman of the Associated Chambers
Tabular statements,
G.-Letter on one-sided free-trade,
H.-Letter on bounty system,
Negotiations for French Treaty,.
I. J.-Object and effect of free-trade,
K.-Silk-trade,
of Commerce,
Report on French tariff on woollen goods adopted by South of
Scotland Chamber of Commerce,
Statistics showing an extraordinary falling off,
•
L. M.-Letters regarding the iron trade,
N.-Letters of a Scottish manufacturer,
•
•
Report of a recent discussion in the Bradford Chamber of Commerce,
O.-Foreign Office report on Brussels Congress of Commerce,
General meetings thereat-free-trade,
•
xxxiii
P.-Mr. Craig-Brown's report on the Congress,
Q.-Edinburgh Chamber of Commerce's memorial regarding French
bounties on shipping,
R.-Memorial presented to Lord Granville thereon,
S. Mr. Macfie's letter to Shipping Gazette,
T.-Shipping Gazette's remarks thereon,
U.—Extracts from letters regarding shipping bounties,
V.-Issue of the 1872-73 Negotiations,
W.-Growth of wealth in France,
•
Times, 1879,
Clippings from Shadwell's Political Economy, 1877,
C
7
106
108
109
110
111
114
114
116
Extracts from the Saturday Review and the Edinburgh Courant, 114, 115
X.-United States Shipping Convention and proposed shipping bounties,
Y.-Growth of United States competition,
117
118
Z.-An Economic Council for Prussia,
118
AA.-Cary's Essay on the State of England-its sensible views (1695),
BB.-Extracts from Le Négotiant Anglais, French edition of The British
Merchant, as to commercial policy and trade with France, 1713, 119
CC.-Clippings from Adam Smith's Wealth of Nations as to naviga-
tion policy and home manufactures,
Clippings from Mill's Political Economy,
Remarkable statements in G. Baden-Powell's Protection and Bad
PAGE
79
•
79
SO
81
81
82
82
82
82
83
83
84
84
$5
91
92
93
93
94
94
95
96
96
98
99
101
103
105
125
127
129
129
1
xxxiv
DD.-
">
EE.
FF.-
333
"2
>"
""
2)
Rocks Ahead, of W. R. Greg, 1874,
Dr. Perry's Political Economy. New York, 1877,
Proposals of a Council of Trade, attributed to
""
59
Mr. Paterson, founder of Bank of England. Edinburgh, 1701, 136
GG.-Treaty of Commerce between England and France,
HH.-French Tariff, 1664,
137
144
146
II.—The text of the French Shipping Bounty Scheme,
Note on recent changes in the manner of conducting commercial
business, and on the effect of the apprehension of untimely
strikes,
""
Contents.
>>
Wilson's Political Economy, Philadelphia, 1877,
Walter's What is Free-trade? New York, 1874,
SECOND APPENDIX.
Extract from an Act, 22 Geo. II.,
A reflection, based on Scotch experiences in the last century, on
what the highest classes might well be and do,
JJ.-Report of Mr. Fison on the International Congress of Commerce,
Messrs. Bowes's Circular on the trade of 1880, and the trade in
woollen manufactures,
KK.-Notes on Mr. Anderson's Patent Bill,
Extracts from letters in the Engineer on changes in the Patent-
Law, with observations thereon,
Suggestions respectfully but earnestly offered as to a Bill, and a
Board, for Patents, and a preliminary Commission of Inquiry,
The principles of the United States "Free Trade League,"
Meeting at Glasgow against French Bounties,
Birmingham sentiments as to Free-Trade,
Liverpool sentiments, .
Leith sentiments,
League for Protection of British industries,
The Examiner on an Imperial Customs Union,
An eminent Scotsman's sentiments,
Letter to Mr. Gladstone as to Leith Meeting,
Letter to Mr. Bright as to Leith Meeting,
Letter to Mr. Chamberlain as to Leith Meeting,
·
·
•
Meeting at Leith against French Bounties,
Meeting at Dundee thereon,.
Meeting at Aberdeen thereon,
Meeting at Paisley thereon, .
Meeting at Greenock thereon,
Extracts from Greenock Advertiser thereon and on emigration of
Boilermakers,
·
PAGE
130
131
132
134
148
148
149
1.50
152
153
153
155
156
157
157, 158
159
159
160
160
161
162
162
162
163
164
165
166
168
169
Mr. Giffen's Board of Trade Evidence,
Papers relating to the Ribbon Trade, printed by vote of
Coventry Chamber of Commerce, .
Meeting of Sheffield Chamber of Commerce,
Extracts from the Shipping Gazette as to Bounties Bill,
Extracts from the Economist thereon,
Extracts from the Shipping Gazette thereon,
Extracts from the Daily Telegraph thereon,
Extracts from the Statist thereon, .
Contents.
On the Trade of India,
Recapitulation,
INDEX,
172
174
175
186
187
189
190
Important Meeting of the Edinburgh Chamber of Commerce,
191
191
193
Speech of Mr. Currie, the Chairman,
Speech of Mr. Warrack, ex-chairman,
Extract from a Saigon Circular,
Calculation of the cost of Bounties,
194
194
196
Letter regarding attitude of Liberals and freedom of opinion, .
Letter on the French Treaty and Bounties,
197
Meetings of Association of Chambers of Commerce,
198
Liverpool Periodicals on Cries in a Crisis,
199
200
On the quiescence of the Press and attitude of the Government,
Liverpool charge as to French Bounties and Financial Reform,
Feelings and Movements in France,
201
202
Letter to Daily Review, Feb. 21, 1881,
205
Letter to the Northern Whig giving explanations,
207
Extracts from Fallacies of the Age, by G. A. Dean,
211
Observations on these,
212
Extracts from Speeches of Richard Cobden,
213
Extracts from Cobden and Political Opinion, by Professor Rogers, M.P., 217
Extracts from Cobden Club Essays, second series,
217
219
*
•
•
•
•
Extracts from Outlines of an Industrial Science, by David Syme,
Extracts from Free Trade and Protection, by Professor Fawcett,
M.P., and Comments on them,
•
·
·
Observations on Religion and the Sabbath in Politics,
Ship Captains and the Shipping Bounties,
Extracts from Mr. Craig Brown's Letter regarding the French
Duties on Woollen Goods,
•
•
•
•
•
•
XXXV
PAGE
170
220
226
229
230
232
232
235
xxxvi
Mr. Macfie is responsible for the following:-
Prefaces,
Concluding Appeal to Earnest Subjects of the Queen,
Letter to a Secretary at Greenock,
Letter to the Board of Trade on Bounties, the French Treaty,
and Free-trade,
On Mr. Chamberlain's Speech about Sugar Bounties,
On the French Treaty, Emigration, and Integration of the
1
Empire,
On an article in the Times referring to the Colonies,
On improving the Constitution of Parliament and its manner
of working; on Parliamentary Papers, .
Value of employment within the kingdom,
Value of emigrants,
Good effect on wages of precautions against hurtful com-
petition taken by former generations,
Introduction to the Appendices, .
•
▸
On Religion and the Sabbath in Politics,
On the Trade of India,
·
.
·
.
C
•
•
On an article in a Liverpool Newspaper, regarding alleged in-
activity of the Government,
Letter on our Trade with France, .
Letter to the Northern Whig,
Remarks on extracts,
•
On the French Treaty, written in 1860,
On a proposed Continental Customs-Union,
Letter to the Shipping Gazette on Shipping Bounties,
On a United States free-trade argument,
On employing aliens for seamen; on changes in the mode of
doing business; on our changed habits; on the nobility, .
On Mr. Anderson's Patent Bill and letters in the Engineer,
On the United States Free-Trade League's Articles of Con-
stitution,
Letters to Mr. Gladstone, Mr. Bright, and Mr. Chamberlain, re-
porting a meeting against the French Bounties, 166, 168, 169
Letter on the attitude of Liberals towards Free-Trade,
196
197
Letter on the Bounties,
PAGE
iii, xvii
xvi
xxi
1
39
•
45
55
60
61
62
63
64
66
103
109
134
148
153
156
200
205
207
212, 220
226
232
LETTER
ΤΟ
THE HON. A. EVELYN ASHLEY, M.P.,
SECRETARY TO THE BOARD OF TRADE.
I HAVE the honour to acknowledge your letter of December 4th,
along with which I am favoured with copy of a letter or manifesto
addressed to officers of the Workmen's National Executive Com-
mittee for the Abolition of the Foreign Sugar Bounties. That
Committee will no doubt give due consideration to the reasons
which you adduce against "the proposal to impose specific duties
in this country, in order to countervail the bounties given in
certain foreign countries on sugar or other articles."
This par-
ticular matter is no doubt difficult and troublesome to deal with,
but it is also of very great importance, both in itself and in its
accompaniments. But I cannot, any more than the Honourable
Board does, limit my anxious thoughts thereto. Our whole com-
mercial policy is involved or is illustrated in it. Therefore, a few
words first on the sugar question.
-
constitution
If the Committee of Privy Council for Trade were composed of Defective.
a greater number of persons, and these cognisant of the various of the Board.
commercial interests of our country-it is a general subject of just
regret that such is not the case-the sugar industry could hardly
have been spoken of as "only small," or the fixed capital engaged in
it as "only about £2,000,000," and the workmen employed in it as
"4000 to 5000 only, of whom by far the largest proportion are
unskilled labourers." Permit me respectfully to observe-
tr
sugar refin.
First, The number of tons of raw sugar melted in the kingdom, Extent of
even now, when scarcely a lump or loaf is made, is, in the mani- ing trade
festo itself, estimated at 700,000, equal to 1000 cargoes of 700 tons.
each, or about as much as the whole annual tonnage of Liverpool
at the end of the French war, as shown in M'Culloch's Com-
mercial Dictionary, the value of which as freightage is very great
indeed.
A
Compared
with textile
manufac-
tures.
Letter to Board of Trade.
The number of tons of wool, about a third of which is home-
grown, that is manufactured in this country, is a little above
102,000 tons; that of cotton about 533,000 tons; jute, 182,000 tons;
hemp, about 53,000 tons. I have no sufficient data with regard to
flax. The foreign flax worked up appears to be not much more
than a tenth of the sugar (all foreign) worked up.
We may
assume, on the basis of the figures just presented, that the sugar-
refining trade, which the Board so remarkably disparages, amounts
in weight to more than two-thirds, perhaps to three-fourths, of
the entire textile manufactures of the kingdom, including that of
ropes. If we exclude hemp and jute, it about equals the rest.
is about 700 times heavier than the whole manufacture of silk,
which appears not to exceed much 1000 tons.
It
Different
kinds of
labour.
2
Why silk
manufacture
Parenthetically, I ask here what is it that causes the nation to
is esteemed. set such store on this, in point of material magnitude, very small
silk trade? It is the circumstance that it employs many hands,
hands directed by intelligent heads to workmanship within the
realm of the tasteful. The great regard always shown towards
this trade, therefore, and the emphasis put by the Board on skill
as a qualification of the sort of labour which the kingdom should
esteem, justify the suspicions that will further on be expressed,
that in our treaty with the French we are in daily conflict with our
own views, and are compromising our deeper and better convictions.
There are two kinds of labour and employment which make
a manufacture important: the labour of manufacture in production,
in what are called "works," and that of transport and handling,
which is continually going on from the port of shipment abroad to
the manufactory at home, in the manufactory, and thereafter from
the manufactory to the house of the consumer, who may be either
within the United Kingdom or out of it. In regard to the sugar
trade, the great bulk and weight of that commodity causes it to be
of immense service (compared with textile manufactures, which are
generally of light weight) on the voyage to this country, and at
every stage of its passage from the quay up to the place of ultimate
consumption. It employs much more shipping than, and probably
requires as much rent to be paid as, and much more coal to be
used than, the fibrous commodities, and of course sets in motion.
more porterage, cartage, railway truckage, etc.
Taking all things into account, a doubt may fairly be enter-
tained whether this latter kind of occupation for the people is not
nationally more desirable than the indoor work which the fibre
manufactures give. There is more of it done by men, and in the
Sugar-refining Trade.
open air, and consequently it demands, and it gives, more bodily
and perhaps also mental vigour and exercise. In this respect it
resembles agriculture, on behalf of which, though the inappreciative
Board would no doubt call its labour "unskilled," too much can
hardly be said.
+
در
M
3
Let us after this long digression return to the case of the
sugar-refiners, and now-
fixed capital.
Second, As to their CAPITAL, which is made so extraordinarily Refiners'
small by the Board. I suppose that in the town of Greenock alone,
the cost of the works may have exceeded the amount you mention ;
and-
men.
Third, If I am not mistaken, the number of MEN is altogether Number of
understated, nor is it fair to say they are "mostly unskilled." If they
are, one cannot wonder that the trade has not been a thriving one.
ployment.
The Board adds that the men who might be thrown out of
employment would, without difficulty, find employment in other
business. I would be sorry to infer from this statement that the
Board think lightly of the advantage to the nation of employment value of em-
contrived or found within the empire, or are blind to the lamentable
fact that every year a vast number of our well-doing fellow-subjects,
in order to find it, permanently alienise themselves on foreign soil,
to their own regret and discomfort, and certainly to the great and
deeply-to-be-regretted loss of the community and the State.
foreign
I have not taken any part in the sugar agitation, though confi-
dent that the parties engaged in sugar business-employers and
employed—are doing their duty to the State by showing how they di-
rectly, and others indirectly, suffer from French bounties. Through- Effect of
out the Board's circular it is admitted that the original, and as it bounties
used to be the principal, article of their manufacture, loaf and lump
sugar, is now little made in this country. In other words, by the
competition which the refiners have encountered, they have to that
great extent been driven from their trade. There is little reason
to doubt that the bounties are the cause of this great individual,
and still greater national loss, as to which I have more to say further
The bounty policy plainly has succeeded in its object. It has
transferred to the Continent what our forefathers regarded as one
of our leading staple manufactures.
on.
It may be alleged, indeed, that the British refiners do not con-
duct their business with the same perfection as their rivals there.
I am disposed to think this is partly true-that there may be
establishments which are laggard and not up to the mark. If so,
4
Letter to Board of Trade.
Unequal
competition
ful improve-
ment.
what wonder? Bad trade tends to retard or rather to prevent
retards need- improvements which involve expenditure. Further, this shows that
under or by means of protection, trades do thrive, notwithstanding
the bold assertion that protective measures necessarily fail of their
end;- a rash or audacious statement which certainly, notwithstanding
its acceptance by the Board, is not believed in protecting countries,
and which I apprehend is contrary to patent facts, and irreconcileable
with the universal experience that interests which are protected are
unwilling to be deprived of what they find an advantage.
New foreign
Another advantage of foreigners may be assumed, viz., that the
competitors rival refineries abroad occupy better positions than the British.
necessarily
enjoy supe-
rior advan.
tages.
They are placed, it may be, where they can get water, inland car-
riage, supervision, and labour, better than establishments which
have grown up in the heart of big towns, at a distance from canals,
and where they, cramped as to space, require also to pay dear for
their fuel, water, transport, premises, etc. The average British
refiner has to compete not merely with Continental refiners whose
are average skill and average advantages, their establishments being
newer and better than his, but with those of them who are above
the average.
In fact, we are throwing off unsympathetically the
refineries which have in the past done so much good to the nation.
Home indus -
tries deserve
more con-
siderate
treatment.
1
Lesson from
common life.
There are cold and rigid theorists who will say "So much the
worse for the poor Briton. Buy in the cheapest market, whatever
the cost of individual suffering at home, whatever the abstraction of
employment from the labour-market, whatever the dependence on
foreigners it creates, however inconsistent with Britain's traditional
policy, however little the pecuniary advantage of buying foreign
goods, or even though on the whole there be no such advantage at
all." Such men speak as if they were judges on the bench, called ·
to dispense equal terms, and to be jealous against any benefit
which may advantage one party against the other, to neither of
whom is any favour or consideration due, and as if the welfare of
foreigners, who manifestly have warm friends in their own coun-
tries, were as much to be sought, and the loss of profit and employ-
ment to British subjects as little a matter for concern, as they would
be provided all the world were one society or nation.
We act not so in common life. In all business transactions
there is a turn of the beam expected by the buyer, and conceded to
him. Neighbours are everywhere preferred to strangers. Members
of the family are universally favoured beyond persons who are not
kith and kin. The principle of giff-gaff is deep-rooted. Think,
too, of commissions, douceurs, etc., for business or custom, bought
Board's Conceptions as to Free Trade.
5
or influenced.
Do not these show that there is in business a
benefit considered worth paying something for? Is not the same
witness borne by the innumerable costly advertisements that
tradesmen and wholesale houses issue? It may be alleged that
these expenses lie chiefly within the domain of petty or fancy
commerce. To whatever extent the allegation is true, it is appli-
cable to, if we omit sugar, the greatest part of the articles which
we draw from France. These are articles which leave a large
margin for profit, and bear heavy expenses.
precedents
I have, it will be observed, advanced beyond considering the The plea that
sugar trade. As to it and others, the great bugbear is confessed and are wanting.
put forward in the very forefront of the manifesto, thus :-" The
imposition of a duty other than those of revenue would be an ex-
ception to the practice which has prevailed in this country since
the policy of free trade was adopted." I am not sure that this
statement is literally and to the full correct. On the contrary, I
remember that in order to counterbalance certain disadvantages
under which they are manufactured, British spirits have a counter- Spirits.
vailing duty to protect them. Besides, there is in the statute-book
power deliberately reserved to discriminate with regard to ships. Appendix,
The utmost that can be said is, that what the Board alleges has
been a matter of practice, but the nation has never compromised
the principle that our tariff or duty system may or must be duly
regardful of all interests, and the Government be left free to pre-
vent or redress all wrongs. It is only now that much occasion can
be said to have arisen for bringing practice into harmony with this
principle.
P. 112.
expediency
tion.
The Board virtually acknowledges that it is by expediency The pleas of
our tariff should be adjusted, when it adds to the words just and satisfac-
quoted :—“A policy on the benefits of which, especially to the
working classes, it is unnecessary to dwell." Without "dwelling
the Board particularises as follows:-"During the last forty years
there has been an unexampled advance in the prosperity of the
country" (if read naturally, these words represent that the advance
began long before free trade was in the ascendant). "Capital
has accumulated [which it could hardly but do]; pauperism
has diminished, wages have increased, the hours of labour, in most
employments, have diminished, the cost of almost every article of
food and necessity has been lessened, and the general welfare of
the masses has been promoted." A comparison of prices would
probably show that "almost every article of food" has not "been Food mono-
poly bad.
در
Letter to Board of Trade.
lessened." Farmers rejoice that some of their produce has very
much risen in price. No doubt wheat has been procurable on
reasonably favourable terms, but for this we are indebted not to
free trade in manufactures,-that is the kind of trade we are con-
sidering, but free trade in food, which is a distinction the Board
and statesmen ought never to forget; and yet generally they do so.
What might have been to the point would be an allegation, if
it could be proved true, that the benefits alleged have arisen from
free trade in manufactures, and this it would be very difficult to
establish. The "policy" spoken of in the preceding paragraph
was chiefly directed to removing of obstacles in the way of supplies
of food and raw material.
All authoritative opinion ascribes the prosperity dilated on to
other causes. I mention three without any attempt to vindicate
their claim :—
First, The world, as a whole, has been growing in population
and wealth, and luxury. It has been in a position to buy more.
old commodities and some new ones; it has bought more, and in
doing so, has given more and more active employment.
Second, The gold discoveries gave a great stimulus to commerce
and expenditure.
Third, The same may be said of the introduction of railways,
and the establishment of new and quick modes of transport by sea.
The truth appears to be that there is a confusion of post hoc
and propter hoc. There has been simultaneousness rather than cause.
and effect. The rapid and striking growth and expansion of trade
within protective countries is enough to dissipate the flattering
and delusive conceptions I have been adverting to. Sir Robert
Sir R. Peel's Peel's policy, it will be remembered, probably the policy also of
expectation. the Anti-Corn-Law League, was to make this country a cheap one
mistaken
to live in, in the hope that it would be, in consequence of that, a
cheap one to manufacture in, a country which would manufacture
cheaper, and be able to supply foreign nations cheaper it had done.
The Liverpool Mercury of December 9 confirms this; it says,
untaxed food means cheaper labour." The effect was the very
opposite.
Causes of
past pros-
perity..
Food and
wages.
6
}
CC
!
The cheapness of food, occurring at a time when there was an
increasing demand for labour, enabled artisans and others to subsist
as they did before with less expense, and hereby to spend more on
the same or new articles, and to acquire new tastes, and a new
standard of living; all which raised the rate of wages, as the Board
tersely tells us. Enlarged wants gave an increase of employment,
and, through that increase of employment, higher wages and greater
Evils engendered by past commercial prosperity.
prosperity. I cannot for my part see that in any considerable
degree free trade in manufactures, which I repeat is what we have.
to consider, caused the welfare of the masses. On the contrary, is
7
in manufac
it not axiomatic that the more manufactures made abroad are used Free-trade
in the British market, the less is the demand for labour to make tures.
them at home, that is the less employment will there be, and
the lower the rate of wages? The Appendix shows how wonder-
fully other countries have thriven whose policy has been the reverse
of ours; for, indeed, no country but our own and Switzerland have
"free-trade." All others are rather going further away from it.
But although all that prosperity could be proved to be caused
by the policy to which it is attributed, I confidently declare that
there is a dangerous confusion of thought, a delusive mixing up Danger from
of what is temporary and transient with what is abiding and
permanent.
prosperity.
There is, I have long thought, nothing more likely to injuriously
affect success in manufactures than exuberant prosperity. It does
this in two ways:—
First, industrials become self-confident, conceited, and careless, See p. 88.
and the reverse of excellent and economical in work.
margins.
Second, The magnitude of the margin is so great as to stimulate Large
and enable foreigners, even in face of difficulties and disadvantages,
to establish rival concerns, which the notorious profits too strongly
tempt them to strive for a share of. It is to these influences in no
small degree that we ought to attribute the establishment in foreign
countries of businesses and premises intended and, as we see gener-
ally, able to oust ourselves. Once established, these rivals work on,
and yearly with greater success.
It is, however, only a commencement that we have yet seen.
We cannot yet be said to be in many trades suffering from foreign
competition.
The Appendix contains abundance of extracts that demon-
strate how on all hands we are threatened.
Law League.
Let us consider for a moment what has taken place in the
past.
Cobden and Bright, and the Anti-Corn-Law League, and Anti-Corn-
their coadjutors, valiantly and victoriously strove against the
great food monopoly which then was rampant. Landowners and
farmers thought that abolition of monopoly should be "all round.”
If these did not say as much, the leaders of the League thought that
they fairly might do so. They confounded the circumstances under
Letter to Board of Trade.
Two depart- which foods are produced with the circumstances under which
ments of
free-trade.
Britain's
superior
position
See p. 86.
abdicated.
со
articles of manufacture are produced. In particular, there is a
limited area on which cereals and grass can be grown. There is no
such limitation of area for the multiplication and enlargement of
manufactories. Every restriction of supply of foods from abroad,
therefore, did of necessity raise prices within the British islands,
while keeping them low outside; but restriction of the same kind.
with regard to manufactures had that effect in a very small degree,
if any at all. The latter restriction was really a powerful and a
sufficient stimulus to encourage and insure the erection of new or
enlarged works within the kingdom, just as demand increased, and
this too, without depressing prices outside, as restriction in foods.
did, and therefore without lessening that foreign demand on which
we at that time could rely.
The question of free trade in manufactures has never yet been
argued out.
There was all the difference in our position from that of
foreign nations: we were established in business, we had the run
of it, we had most of the then methods and channels of distribution
and agency all working in our favour. Other nations had not
these, but had to form them. For twenty or thirty years they
have been doing so, and have now attained, along with proficiency
and skill, such magnitude and such economy of operations in
several trades that they are able to compete with us not merely at
their own doors, but in the open field of the world, and even to
outdo us within the United Kingdom.
This advance towards us, or stepping out beyond us, has been
progressing at an accelerated pace, favoured by some helps; to
which brief reference may now be made.
The secret of success in modern manufactures lies largely in
the scale or extent on which business is done. It has been
ascertained and established by experience that largeness of scale
conduces at once to superiority and to cheapness of production.
Therefore, to have had the whole world, including that pre-
eminently remunerative part, the United Kingdom and its colonies,
within the area to be supplied is a very substantial advantage.
This gain the British people relinquished and confer volun-
tarily and unnecessarily on rivals. They left no advantage to
themselves of any considerable amount beyond those of posses-
sion of the ground, but rather, on the whole, considerable
disadvantage. They acted, if not proudly, very liberally in the
matter. They were, indeed, so very desirous of bringing about
K
Liverpool Chamber of Commerce.
9
international free trade that they, and this by the agency of Mr.
Cobden, chivalrously and almost quixotically, agreed to give an
extraordinary practical proof of confidence in the free trade theory
and its truth self-evidencing. They subjected themselves by treaty
to terms which, but for the motive and circumstances, could only
be regarded as ignominious; for in a matter of stipulation and
obligation to accept the worst of a bargain is commonly held to
imply secondariness in power or claims, or in cleverness.
treaty
Any one who will take the trouble to examine the discussions French
which took place when the renowned treaty with France was on
the tapis will find that the propagandist spirit was dominant at
the time. This same is avowed now by the President of the
Board, who speaks of this country as the apostle of free-trade (rather
the martyr).
Liverpool
I remember well the discussions in the Liverpool Chamber of discussed in
Commerce. These may be taken as fairly representative of what Chamber of
the Government wished the nation to think and feel, and what the
nation did actually think and feel.
Commerce.
Appendix B,
p. 66.
A resolution was moved in that important commercial body,
which, though not very strongly, approved of the treaty and the
sweeping away of import duties which it bound us to, but it
finished with a strong expression of regret that in the treaty due
regard had not been had to its influence on the shipping interest,
which it seriously compromised. The mover (who, it may be
mentioned, was not a merchant) laid great stress on the converting
effect which the tasting of free-trade blood, administered in a very
peculiar way, would exert. The following extracts prove this
point:-
"British manufactures, hitherto very generally prohibited from
entering France altogether, are now to be admitted on duties not ex-
ceeding 30 per cent. on their value." [To any one acquainted, e.g.,
with the sugar-trade, it is as amusing as sorrowful to behold the
first among the articles specified as admissible under a 30 per
cent. protection, loaf-sugar, where a margin of a tenth part of that
would be quite sufficient protection.] . . . "We shall have broken
through the first defences of the French protective system; and that
done, when we shall carry the fortress is a mere question of time.
When the French people learn what it is that the barrier of 30 per France was
cent. is keeping out, it will not be long before they will hanker for expected
Free-Trade, nor much longer before they will be ardent Free-Traders. free-trade.
Hence it is that I am disposed to regard this treaty, should it
continue in operation only a few years, as the sure forerunner of the
downfall of the protective system in France. . . . I do not hesitate to
affirm that, in assenting to this Treaty, notwithstanding the defects
soon to adopt
An admis-
sion.
Original
motion.
Sir W.
Brown.
Political
object.
Letter to Board of Trade.
apparent on a superficial examination of it, you will be lending the
influence of the Chamber to the most direct and effective blow yet
aimed at the Protective system, not in France only, but throughout
the Continent of Europe. A great deal has already been said against
the Treaty, and much of it with apparent justice. It is open to dis-
cussion, and it ought to be discussed with the utmost freedom." . .
He moved :-
IO
A Glasgow
severe con-
demnation,
"That this Chamber, regarding the pending Treaty of Commerce
only in a commercial point of view, seeing in it an advance towards
Free-Trade between the two countries, and not desiring to offer any
opinion upon the political considerations which impede a more rapid
advance in the same direction, approves of the measure generally; but
cannot withhold an expression of regret that, for the benefit of both
countries, the shipping of both is not to be placed upon the same.
footing."
expecta-
tions.
regretted that the ships of both nations were not to be placed
on the same footing. With respect to the duty of 30 per cent. on
different articles, he believed that even the partial reductions thus effected
His sanguine would be of considerable value. We should do all we could to
the
encourage the French people to pursue the Free-Trade course;
Treaty was not all they could wish-it was an instalment; we should
not refuse to receive it, however small that instalment may be. He
hoped the town would press strongly their opinions as to the desirabil-
ity of effecting an opening between France and this country-desirable,
not only in a commercial, but in a political, point of view, the latter one
being equal, if not of greater importance than the former. A war between
France and this country would indeed be a great calamity to both
nations; and if any comparatively trifling sacrifice on our part could
strengthen our amicable relations with our neighbours, and more
thoroughly aid and secure the blessings of peace, it was desirable to
make such a sacrifice.”
The seconder of the motion was Sir William, then Mr., Brown,
a name honourably perpetuated in the "Brown Library" of Liver-
pool, and remembered as the representative of South Lancashire.
He said he
(6
Shipping in-
terests com-
A later speaker, Mr. Clint, said he thought that a very grave.
-
promised. omission had been made in the treaty with respect to the shipping
•
interest, and that a serious responsibility would rest upon the
Government, if it had sanctioned such an omission. I took part
in the discussion, and read the following extract from a Glasgow
Liberal newspaper :-
،،
Heartily approving of Free-Trade, as most of the economists of
Great Britain now do, some, at least, will be inclined to question
whether in this new treaty with France the country has made even a
tolerable bargain. To call the measure a measure of free-trade is
Opinions unfavourable to Treaty.
truth.
merely an abuse of terms, and when we come to examine the precise
items, we are unwillingly constrained to conclude that we have far the
worst of the bargain. The precise nature of the measure seems to be The plain
this: We are to give to France those articles and commodities that will
render France richer, we are to receive from France those articles and
commodities that will render Britain poorer. This is a commercial
treaty with a vengeance. Everything we give to France will make
France stronger, both commercially and for warlike purposes; every-
thing France will give to us will be only articles of consumption for
the classes who are better off than their neighbours. Such a treaty is
only a delusion, as it stands. It is for the rich in both ways, and not
for the masses. To call this free-trade is to make a joke of the term.
Louis Napoleon has fairly outwitted Mr. Cobden, if this be Mr.
Cobden's doing."
II
A Liverpool correspondent reported-
approval
"Those members of the Chamber connected with the shipping Liverpool
interests spoke warmly in disapprobation of those portions of the was but
treaty which relate to the differential duties on French shipping, qualified.
several declaring that they could not give even a general approval to a
treaty which left the shipping grievance untouched.
"At the adjourned meeting the discussion resulted in a memorial
which gave a modified general approval of both the budget and the
treaty, while at the same time expressing dissent from many of the
propositions contained in each, particularly disapproving of that pro-
vision of the treaty which did not arrange for a complete reciprocity
for British shipping in French ports of those advantages so long since
granted to French shipping in British ports."
•
stone.
There were two concurrent circumstances that influenced the
Government. On the one hand Mr. Gladstone was disposed to Mr. Glad-
make a sweeping clearance of customs' duties, and he was glad
that at the same time there presented itself an opportunity of, as
he thought, obtaining from the French some great advantage. No
doubt he did obtain admission into France of some British goods.
The error, for such at least not a few think it, was that what he
conceded was too much in quantity and value, and that in several
directions, as well as promised them for a dangerously long period.
I for one doubt whether Mr. Cobden himself, if he were living to- Mr. Cobden.
day, would not be among the first to pronounce against another
such treaty. The extracts just given show conclusively that it was
with no inconsiderable amount of hesitation on account of very
obvious points of unacceptability, that the treaty, when its terms
became known, was confirmed. Its supporters confidently alleged
that before the ten years would expire the French would have be-
come converts to the principle of non-protection. Even this, as it
has proved altogether fallacious, expectation might not have been
Acknow-
ledged
Letter to Board of Trade.
sufficient to reconcile the people and the Government to what was
done or intended. There lay under the surface, but cropping out
very distinctly here, there, and all about, an uneasy feeling with
regard to the state of the political relations between the two coun-
tries, and a desire, as Sir William Brown put it, to "make a sacri-
"sacrifice." fice" in order to ameliorate these relations.
Cobden
Club.
I 2
were ques-
tionable.
((
So lately as the year 1870 the Cobden Club, under the motto of
Free-trade, peace, goodwill among nations," published Speeches
on Questions of Public Policy, by Richard Cobden, M.P., edited by
John Bright and Jas. E. Thorold Rogers. I turn to these volumes,
hoping to find some speech regarding the French Treaty. The
nearest approach to that is to be found in a speech delivered at
Rochdale to his constituents, on June 26th, 1861, " after the French
commercial treaty had been negotiated." From it the following
t
are extracts :-
•
"I have been endeavouring to make such arrangements as shall lead
two great countries . . . to enter upon new relations. I have been
yond trade seeking to form arrangements by which these two countries shall
Mr. Cobden's
real aims ex-
tended be-
•
be united together in mutual bonds of dependence [a strange aim!]
and, I hope, of future peace. 1. What I confess, as an Englishman,
I have been led in this important duty most to consider is, how
this matter has benefited you, not by what it will allow you to export,
but by what it will allow you to import. [If this means to import in
substitution for articles of the kind already being made within the
United Kingdom, it involves a lessening of demand for labour at home.
If it means increased use of French wines and spirits, I refer to what
I say elsewhere on that subject.] . . . My aim and hope have been to
promote such a change as shall lead to a better moral and political tone
between the two nations. Your worthy mayor has alluded to the
immense preparations now making by the governments of these two
countries for warlike operations. These preparations, as far as the
navies of the two countries are concerned, are undoubtedly-nay, avow-
edly—with the view to mutual attack or defence from these two countries
alone.
I ask you
is there no presumptive evidence calculated
to make you pause before you believe
believe ... when you find that govern-
ment engaged in this most difficult task, the subversion of their commer-
cial system [a very slight subversion indeed,] by throwing open the mar-
kets of that country to the manufactures of England [open to not very
much more than the extent to which a field can be said to be open when
you can look over the wall as you pass along without gaining admittance]
that it is the design of the French
Emperor to come and invade your shores . . .? Looking at him as an
intelligent man, what must we say of his conduct in proposing at the
same time to adopt a policy which would knit the two countries in the
bonds of commercial dependence? I should have suspected some sinister
design on the part of the French Government, and should have con-
sidered myself a traitor to my country, if I had allowed the government
before you believe
•
•
•
1
•
ľ
·
·
S
}
Cobden and the Cobden Club.
13
of that country to have made use of me to mislead or hoodwink Eng-
land by leading me to suppose that my instrumentality was being used
for the promotion of commercial intercourse, when I had grounds to
believe they were entering upon a policy of war."
War.
Allusion will be made further on to strength for war purposes which Page 86.
shipping bounties are now proposed in order to secure. May I
here interject an expression of regret that the reciprocal depend-
ence sought should not rather have been between the mother
country and the colonies !
Some light on the quotations just given is thrown by a more
recent publication of the club, Cobden and Modern Political
Opinion, by Professor Rogers, M.P. I find on page 324 thereof:-
Professor
Rogers' com-
察
​"He even thought Lord Palmerston to be as mischievous a man
as Napoleon. . . . The formal development of such international ments.
relations as Cobden contemplated in the diplomatic negotiations which
are identified with his later activity, is part of that high political
education in mutual duties and mutual benefits, which must be in time
to come the process of modern civilisation. The true student of
political philosophy . . . is a stranger to that enthusiasm which some
men call loyalty. An economist may accept the title of a missionary. «Mission-
. . . They who know Cobden can confirm my statement, that in the ary.'
ultimate victory of his principles, of which, indeed, he never doubted,
the smallest consequence which he foresaw was the distribution of
the benefits which nature accords through the machinery of free
trade. . . . It is possible that the avowal of these purposes would have
led to the charge that the work which Cobden undertook was visionary
and Utopian. . . . For the majority of men it was expedient to show
that the interests of trade would be furthered by a relaxation of those objection-
restrictions which had formerly prevailed, and that the form of a com- in view.
mercial treaty was a guarantee against the reversal of a policy which
had been once adopted. [I don't like these words. Surely a Liberal
Government of to-day will not act on such an intent ?]. . . I am ready
enough to admit that a commercial treaty is not the highest manifesta-
tion of economic intelligence; but it may be the best under the cir-
cumstances. Men must walk before they can run; they must be taught
their alphabet, and con words of one syllable before they can read an
ordinary sentence with fluency. . . . It is still a good, if we can Apologies.
induce them to travel a little way on the same road with ourselves; the
education of nations is something. . . . What should we say of a man
who declined to teach a child anything whatever, on the ground that
he saw no prospect of carrying his pupil through all the arts and
sciences. Cobden's treaty was an arrangement by which a true
reciprocity of free trade was made a question of time."
able object
"3
An interesting account of the Treaty, contained in the Memoirs Appendix A,
of the Prince Consort, begins our Appendix.
p. 65.
Thiers.
Letter to Board of Trade.
The following extract is significant as showing how much
France, a dozen of years after the treaty was negotiated, wished
to have greater freedom than that treaty allows her :-
"Upon all those points some remedy must be applied for a state
of things which was becoming worse from day to day, and particularly
with respect to the mercantile marine, which the foreign warehouses
were causing to disappear. . . We propose, while leaving to foreign
trade all the freedom compatible with the public welfare, to insure to
our manufacturers, to those who, during three-quarters of a century,
have made the fortune of France [a much kindlier spirit this than the
British Government ventures to express, or, I fear, feels], the protec-
commercial tion of adequate tariffs, in order that they might not perish under the
France re-
quired free-
dor of
policy.
A lesson
for us.
14
unlimited competition of foreigners,-sufficient stimulants to prevent
them from falling into a state of indolent security, but not sufficient
to reduce them to the position of abandoning production. . . . With
this view, although we had a strong preference for the abrogation of
the treaties by which we are bound, because we, above all, aim at the
recovery of the freedom of our commercial policy [the United Kingdom
has more to recover, the freedom of finance], we thought it would be
more prudent to propose to England to agree with us to a simple
modification of the existing treaties, a modification which we deemed
indispensable under the empire. Thus, while allowing to continue all
the tariffs affecting iron, coal, chemical products, glass, porcelain,
woollens, salt and fresh fish, we should prefer, we said to the
English Government, the denunciation of the treaty, because, like you,
we desire to recover the liberty of our commercial relations; but, in a
spirit of friendship and cordial relations, we consent to remain bound
by stipulations which are very inconvenient for us, upon condition that
those which are so hurtful as to threaten the existence of our principal
manufactures are relaxed."
•
Twice, or oftener, in the course of the same speech, the great
French minister used strongly the words "recover our freedom."
Here, then, is a lesson for us.
Manchester
Chamber of
An interesting report was made in 1872 to the Manchester
Commerce. Chamber of Commerce by Mr. Hugh Mason, then its President,
and Mr. Slagg, Director (both gentlemen are members of the
present Parliament). It said that they had waited on Mr.
Kennedy, the Commissioner appointed by our Government to
negotiate a new French Treaty, and the head of the commercial
department of the Foreign Office, who informed them-
A
"that it was not within the scope of his functions to discuss with
us questions of general policy or of principle. His duty was simply to
listen to any objections we might have to make as to the method and
degree in which the new compensatory duties were to be applied by
the French authorities to cotton, yarns, and goods. . . . We succeeded
⠀
Manchester Chamber of Commerce.
15
Slagg's
in 1872.
in convincing him that . . . the new duties far exceeded the amounts Mason and
justified by the taxes on raw materials, and that an attempt was made report.
at every stage of the tariff to tax the industry of this country, especi-
ally so in cases where it might possibly come into competition with
that of France. . . . We obtained an inteview with Earl Granville.
The Government seems to have considered that the anticipations
of Mr. Cobden, that his treaty (apart from trade questions) would tend
to draw closer the ties of mutual interest and good feeling between the
two countries, had been so far realised as to render the abrupt termi-
nation of such relations undesirable. . . . The conditions of the new
treaty may be generally summarised thus:--The tariff of the treaty of Negotiations
1860 to remain in force, with the addition of compensatory duties
equivalent to the taxes paid on raw materials by the French producers;
England to be replaced in the position assured to her for her naviga-
tion by the law of the 19th April 1866, now repealed in France.
Complete freedom regained by England in respect to her own duties.
on wine, coal, and all other imports and exports. . . . We regretted
that it was then too late usefully to urge our unshaken belief that the
principles of treaties of commerce, justified by Mr. Cobden in 1860,
was inadmissible in 1862. We derive but scanty consolation Treaty of
from the fact that while abetting the commercial slavery of France, denounced.
England has taken pains to regain complete liberty for herself. We
rely on the conviction that this chamber will support us in the view,
that no temporary advantage, however apparently expedient, can
justify departure from well-ascertained principles.”
commerce
•
The Manchester Examiner said-
"It is regarded as highly probable that the aspirations of the
Manchester Chamber of Commerce will, after all, be fulfilled to the
extent possibly of the defeat of the treaty under discussion, and, it
may be, by the establishment of commercial relations with France on
a broader or more satisfactory basis.
M
da,
>>
A letter, honoured with conspicuous type, in the Times of 16th
October 1872, concluded thus-
France.
"To the denunciation England has only to make her bow and
gracefully retire. Sure may we feel that if the individuals composing Disfavour in
the four classes to which I have adverted could be polled and repre-
sented, so as to convey their own wishes to the Government, they
would say, by a large preponderance of voices, 'Leave us alone.""
A fortiori, much more should the united kingdom, whose free-
dom of action was so much more extensively compromised, desire
for herself freedom. Lord Salisbury spoke plainly on this subject.
Lord Salisbury, in addressing the Manchester Chamber,
October 20, 1879, said-
bury.
"I cannot help thinking the time will come when the farmers of Lord Salis-
America will prefer cheap cotton to dear, and cheap iron to dear.
When that time comes none of those obstacles to which I have referred
will prevent the United States from entering on a sound policy of
Letter to Board of Trade.
of British
negotiators.
fiscal and commercial legislation; but with respect to other countries.
Helplessness of the world we have no such immediate hope. Now, in the address
which has been placed before me, we are recommended to try and
foster the interests of commerce by the conclusion of treaties which
shall remove the fiscal obstacles which are now arresting the flow of
commerce. Undoubtedly it is our duty to do so, and undoubtedly
we shall make the utmost efforts we can wherever we have the
materials in our hands; but we are in the position, the well-known
position, of being asked to make bricks without straw. We have to
open the doors to the access of trade when the keys have unfortunately
been thrown away by the mistakes of our predecessors. I am not
here speaking party politics, and by our predecessors I refer to a
generation ago. Now the doctrine of free-trade, which has obtained
such a complete victory in this country, has passed through two
phases, and there have been two versions of it. There has been the
theoretical version sanctioned by Sir Robert Peel, and the more prac-
tical version sanctioned by Mr. Gladstone. In the days of Sir Robert
Peel it seems to have been generally believed that free-trade was so
evidently true that no sooner should it have been proclaimed by this
country than all other nations would hasten to adopt it. But the
experience of some fifteen years has shown that that was entirely
groundless; but, under the influence of the belief, treaties of com-
merce were looked upon as a species of economical heresy, and vast
numbers of duties were repealed which might have been repealed,
conditional that reciprocal repeals were made in other countries. Of
course, steps of that kind once taken can never be retraced; but the
result of the materials which are in our hands for the conclusion of
treaties of commerce are very meagre."
Exploded
expecta-
tions.
16
Ma
I now give extracts from Free-Trade and Protection, by the
Right Hon. Professor Fawcett, M.P., Postmaster-General :-
Inconveni-
ences ac-
"Great as are the advantages which result from such a Treaty,
knowledged they are accompanied by at least one important disadvantage. When
certain fiscal arrangements are entered into between two countries
which are to remain in operation during a fixed number of years, it is
evident that throughout the continuance of this period, the freedom of
each country to introduce changes in its tariff is somewhat [!] curtailed.
Thus by the Anglo-French Treaty it was stipulated that only certain
by Professor defined duties should be levied upon French wines imported into
England. Some event might have occurred, such, for instance, as a
prolonged and costly war, which might have made it necessary for
England to have raised additional revenue by indirect taxation. If
this had been the case, the Treaty stipulations into which she had
entered would have virtually prevented her obtaining any portion of
this additional revenue by increased taxation on alcoholic drinks.
Fawcett.
•
"Without expressing a positive opinion as to the justice of these
complaints, belief in them is so general in Spain, that the Government
of that country was induced last year so to frame its budget as to
place English commerce at a special disadvantage. Such an occurrence
7
Expectations and misconceptions.
17
shows how important it is that a country which desires, in accordance
with the principles of free-trade, to place the goods of all other
countries on an equality in its own markets, should not, in order to
facilitate the negotiations of a commercial Treaty with any particular
country, admit its goods on exceptionally favourable terms."
Mr. Bright writes as follows to Mr. Abraham, the miners' re-
presentative in the Rhondda Valley, disconsolately enough:
of something
great.
"We can only keep our own tariff as free as we can, and live in Faint hope
the hope that foreign nations will in time find it their interest to not very
reduce their tariff. I fear one nation can do little for another in
matters of this kind. The military system and exaction of European
Governments demand high taxes to sustain them, and high taxation
is most easily raised by customs duties, and by the customs duties pro- Mr. Bright
tection is offered to and conferred upon manufacturers, who are there- United
fore rendered more patient under high taxation. In America the high States.
tariff comes from the great civil war. When this debt is greatly
reduced, and their taxation becomes much less, they will make the
tariff more moderate, and will by degrees approach free-trade.”
In the Appendix will be found incidental references ad nauseum
to the discomforts and disabilities into which we in 1860 noosed
our statesmen with our eyes open.
beam" treat-
This may not be an improper place to advert to an apology too
often heard in defence of the "even beam" treatment, which became The "even
inevitable when the great run of import duties was abolished: that ment.
the freight payable from France is itself a protection. The name is a
misnomer,— call it a defence if you will, but to what does it amount ?
To very little, and that little got but partially. If the supplying of
Newcastle or Hull, for instance, is to be from either Havre or
Nantes, the Frenchman can effect it cheaper, as the whole transport
in his case is by sea. But what of the manufactures of Ireland,
say of sugar from Dublin, or linen from Belfast?
abroad is not
protection.
I pause to say a few words in illustration of this point, which Freight from
is radical in respect to the place of the principle of protection.
Let us in imagination draw a line that will bisect Great Britain
from north to south, and what appears is this, that for supplying
bulky articles of manufacture to the east coast ports, including
London, with a population greater than Scotland! many ports
and places on the Continent are considerably better situated than
our own ports on the west coast, and the great majority of our
inland towns and, be it observed, the whole of Ireland. Sugar
refined in Liverpool and Greenock and Dublin cannot be delivered
in London as cheaply as what is refined at Amsterdam or Antwerp,
B
1
Eggs.
.
Good of
the nation
should be
supreme.
Solidarity.
Combina-
tion.
18
Letter to Board of Trade.
or Havre or Nantes. A like statement might be made as to the
linens of Belfast. It is evident therefore that under what we call
free-trade, beyond the most regrettable result it has of putting to
a disadvantage establishments already in operation and our fellow-
subjects who own them, there is less inducement offered to
establish new manufactures, and (taking a different sort of employ)
to rear poultry for eggs or the market, on the greater part of
British soil than on no small area of the Continent! The system,
in virtue of the very equality which it affects, produces inequality
between one portion and another of our own United Kingdom,
and at the same time is a benefit conferred in an exceptional manner
on foreigners, whom it favours by promising them a position on
the first line.
The truth is that in this matter of national policy, individual
and class interests have, reversing our good old ways, been by the
present generation much more considered and promoted than those
of the nation—of the people as a whole. These interests do not
run parallel, nor are they identical. All we can say, as an exposi-
tion of true principle, is that the good of the whole is to be pre-
ferred to that of its component parts, and that, in consulting that
end, the parts will for the most part receive the maximum of
individual and class good. Sciolists of the day would back any
stave of a cask in its individualism, whereas our grandfathers
would have addressed it thus: No, as long as you were a stave
in the woodman's pile, or on the quays of a foreign country,
you were entitled to all the freedom, as you bore all the disadvan-
tage, of isolation; but you cannot both keep your place in our
firmly bound cask, deriving strength and value from that, and your
principal raison d'être, and, at same time, assert a claim such as
you incompatibly and self-regardfully raise. We are apt to forget
that in peace as in war there must be such solidarity as is meant
in mutual support and a common endurance of burdens or priva-
tions. We must bear the constraint of being hooped.
A new practice has been sanctioned, if not formally inaugu-
rated, wherein, on the one hand, the utmost conceivable liberty
has been given individually to combine for their particular supposed
interests, to the extent indeed of instituting powerful imperia in
imperio; and on the other, the involved and implied bonds or
obligations or duties which we owe to the State, that is, to one
another as a whole, have been weakened, and seldom even asserted
boldly. It is the wisdom of rulers, and the strength of a nation,
to make a righteous adjustment or compromise between these two
tendencies.
M
.
Consumers and Labourers.
To return from our digression: I ask, Is it not a decided France.
superiority the Frenchman enjoys? And who is the Frenchman?
A good neighbour, who is our rival, yet who pays not merely no
duty to our custom-houses, but no income-tax in his own country,
and contributes nothing whatever to British taxation, national or
local. Of course too he does not benefit us in the indirect ways,
which are still better, for he does not employ dwellers in Britain
or Ireland as his workpeople, nor does he spend his earnings
among us or invest them in new industries within the empire,
while he supplants those persons who are doing all that.
patronage
"
sumers.
These are circumstances which the Board's manifesto ignores. It The Board's
harps upon the interest of consumers. The word occurs six times, of "con-
that of manufacturers and producers and workers very seldom (I
have quoted the only instance): that of the Nation or State not at
all. Now who is this consumer who is justly so much made of?
Not the foreigner, but every man, woman, and child who lives
within the kingdom. Whence derive they the incomes and wages
that enable them to buy in order to consume? With few excep-
tions, from labour or employment. Whence this employment?
Chiefly from production, not abroad, but within the empire. To Wage-earn-
import goods, manufactured abroad, of sorts that can as well be important
made here, is, I repeat, to displace goods that are or would be diture.
manufactured by or among ourselves-to reduce the ability to
consume and the number of consumers. In an extraordinary manner
the expenditure of the people is magnified to the neglect of their
receipts that enable them to expend.
ing more
than expen-
19
With philosophic coolness the Board writes of the men
employed in sugar-houses :-"The largest proportion are un- Sugar-house
skilled labourers, and may therefore, without difficulty, find
employment in other business." Skilled or unskilled, employ-
ment is not so easily got. Why (even though it were) force
labourers to leave the work for which they have been trained and
the localities where they feel at home or the country of their
birth? Why deprive their neighbours of so many good "customers"?
Our theorists pretend that, leaving things to the natural course
men will betake themselves to the work that is best fitted for
them, and where they will contribute most to social wealth (they
do not add, live most comfortably). They hide the undeniable and
sad fact that in order to obtain it, since work does not come to them,
and is in truth by our policy sent away from our shores, they must
go to the work,-to Roubaix, or Lille, or other places, where a foreign Expatria-
language is spoken and Protestant congregations, if they exist, do
tion.
Why little
from France.
Letter to Board of Trade.
mad
not conduct their services in their tongue. They, in large and in-
creasing numbers, emigrate in preference across the Atlantic; most
of them there become foreigners and no longer contributors to our
taxes, or available as recruits and volunteers, nor to any large
extent customers of our shops and contributors to this nation's
wealth. Every able-bodied man we lose is a gift to another
country of £500, measuring by a pure money standard.
=
There is little emigration from France. We are told that it
is because the Frenchman does not like to leave his native land.
This is honourable to him, and an advantage to France. But is
not there another cause? The French by means of protection
keep and find, and we by our treaty enable them to find, for him
increasing work to do at home.
20
Commend-
able earnest-
ness
Marvellous is the contrast between the anxiety practically
foreign Go- manifested in other countries not in any degree or way, however
vernments. small, to diminish the people's employment. Most particularly is
this the case on the other side of the Atlantic, where, if anywhere,
handicraft employment need not be sighed for.
A great, if not the principal, difficulty to be overcome in the
negotiations between the United Kingdom and the United States
with regard to copyright lies in the determination of the Govern-
ment of the latter to back the demand of States' book-manufac-
turers that, even if copyright be conceded, free importation of
books shall not be permitted but, on the contrary, the operations of
printing and binding must be done there. Even now some of
our books are printed on the Continent and in the United States.
Threatened If the demands of the United States booksellers are conceded, I
loss of print- anticipate that we shall see a very large part of our publishing
ing
business, and the employments that it occasions, carried to the
other side of the Atlantic, and not merely magazines (as is rapidly
becoming the case), but the most important and popular books, so
far as concerns commerce and manufacturing, brought thence;
and so with many, many other things.
We have un-
employment
for the
people.
The truth is, we have had for a number of years such an
dervalued extent of manufacturing employment (with the help of a shortened
number of hours of labour, and general prosperity), that we have
not set upon it its due value-notwithstanding the unpleasant
sight continually meeting our eyes of poor-houses like palaces,
and, what is worse, of emigration, which latter relief has been
more or less called for by our not having employment enough.
We are apt to forget that in a thriving country population is
continually on the increase by births, and it is continually attract-
**
Sir Alexander Galt's appeal to common sense. 2 I
the United
ing population, and therefore additional employment is continually
wanted. The United States have enormous unoccupied lands Example of
immediately contiguous to those that are occupied, to which, if States.
there were deficiency of employment, surplus population would
naturally betake itself: yet they foster industries sedulously.
The United Kingdom is not so happily circumstanced; its colonies
are remote; the unoccupied lands there are not under the control
of the central government, and yet we, I think very mistakenly,
make light of the advantage of being able by better statesman-
ship to retain and enlarge the amount of employment within
the kingdom. To us it is a matter of necessity, to the States a
matter of policy, a piece of shrewdness for which they deserve
credit; for, indisputably, the wealth and strength of a country,
provided all can be employed in it as contributors thereto, is pro-
portionate to its loyal and well-doing population, and never was
there a time when this required more to be attended to.
There is a point of view which we are too apt to forget, that
since tastes, talents, ages, and idiosyncrasies mental and bodily,
differ, it is desirable to have in every district a variety of kinds of
employment. Too little attention has in time past been paid to
this circumstance.
valued cus-
Another error, and a great one, of our statesmanship has been Have under-
to undervalue buyers or customers. In all trades and professions tomers.
it is not the providers, but the persons to be provided for, that are
sought out and courted, and valued. It is in strict conformity
with what happens with regard to individuals that a nation of
customers is invaluable to foreigners who supply it. Therefore
Sir Alexander Galt struck directly and tellingly home when he
appealed to the Associated Chambers of Commerce whether as to
our national trade in the aggregate we have not forgotten the
fundamental principle of all trade, that of selling to the greatest
advantage, when we systematically give the world for absolutely
nothing the most valuable article we have to dispose of—our
custom, and this largely custom which we could keep at home.
value of the
France and
Kingdom.
Here let attention be directed to some figures connected with Comparative
the trade between the United Kingdom and France. Our exports treaty to
to that country have no doubt augmented since the Cobden treaty the United
was negotiated, but the augmentation had begun, and was in rapid
progress, a number of years earlier. I have endeavoured to classify
these. I leave out cereals and cotton and other raw materials,
and divide the remainder into four groups or classes:-1. Goods
Letter to Board of Trade.
which do not require for their production much labour; 2. Those
that require more-this group includes yarn; 3. Contains goods
requiring still more labour; 4. Those requiring much.
Of the total of the four (viz., £10,623,000), we export of the
from France. 1st class to the value of £1,300,000, but we import from France
Exports to
and imports
to the value of £7,313,000; of the 2d class we export £1,755,000,
while we import to the value of £4,216,000; of the 3d class we
export £5,518,000, and import (only) £2,662,000. Of the 4th
Appendix C, class we exported £2,050,000, and imported the extraordinary
1'. 70.
value of £19,164,000.
22
Most could
be produced
within the
United King-
doi.
Trade to
France
The large third-class exportation is mostly made up of two
items, viz., cottons and woollens, branches of business which are
rapidly falling off, as the following figures show. Of cottons we
exported in 1875 £1,887,000. In 1879 only £1,333,000. Of
woollens we exported in 1875 £3,363,000, and last year only
£2,972,000.
Altogether we exported much less than a third of what we
imported, and it has been shown that of the highest class our
imports were nearly ten times as great as our exports.
Of this large aggregate a very small part indeed could not
about as well be produced or manufactured within our own
kingdom, if we exclude wine and spirits, which we import to
the value of more than £4,500,000.
Another analysis which I have made shows that of the 38
millions last year imported from France, if we deduct animals,
corn, flax, fruit, hops, madder, potatoes, seeds, wool, and cotton,
there remain altogether about 36 millions of commodities highly
remunerative to the producing country. No doubt, of this large
remainder more articles belong to a general class which it would
be imprudent or out of the question to exclude. Make therefore a
further deduction of 9 millions for asphaltum, butter, eggs, hides,
oils, poultry, silk, skins, vegetables, spirits, and wine, and the sur-
prising result is beheld that about 26 millions of the materials
which we bring from France could quite as well be produced in
the British Islands.
Our exports to France are lessening. Their amount is not so
diminishing. very significant, that although France were to revert to an abso-
lutely exclusive policy, our nation's loss would be a matter of
vast consequence. We could still continue to import as much as
we find convenient of her produce and manufactures. Why we
should strongly desire them is not apparent, seeing that almost
every pound's worth abstracts no inconsiderable amount of pos-
sible employment from our own people. If we took nothing at
Consequents of French Policy.
23
from France
all from France, we would be richer and not much less happy than Imports
we are. It is chiefly luxuries, or superfluities and elegancies, that could be dis-
we would deny ourselves.
pensed with.
If the French have found the British market so very good, we
must, in the absence of a treaty, be treated even better than we
are under treaty; for the French would continually be on the
qui vive and the alert not to endanger the loss of customers so
extremely valuable.
2
There is one item to which I call special attention, because it Eggs.
is one which in general estimation will be regarded as to Lon-
doners a particularly acceptable importation, I mean eggs. In
1875 we imported thereof to the value of £2,078,000; in 1879 to
the value of £1,391,000. I ask what advantage has France over
the south of England and the south of Ireland in this article of
commerce that we should depend upon her so largely for its
supply? That boon to our neighbours, however, being for an British
article of food, I merely mention. It lies on the border-land of
my distinction between production of food and production of manu-
factures, inasmuch as, like manufactures, the ground on which
poultry can be reared is practically unlimited. The illustration
goes far to prove the allegation that Britons and Irish of the pre-
sent day do not take so well as the French do to matters of detail
and nicety in the minor ways of eking out a livelihood.
farmers.
French
The French, to do them credit, although self-regardful and Aims of
in the past, as to sugar, evasive, are now acting straightforwardly, policy.
so far as I am able to judge. They evidently have objects in
view, or (lest this should be regarded as an invidious representation
of matters) they are carrying out a series of negotiations the effect
of which will be the same as if they had these objects in view.
Among their seeming objects are :—
First, To introduce as much of their wines and spirits as they
can. The societies which move with so much energy in behalf of
temperance are wonderfully dumb when the reduction of the duties
on foreign wine is in prospect. To whatever extent these foreign Wines and
potables are introduced, they are either an addition to the consump-
tion of articles of mere luxury belonging to a class the use of which
statesmen ought not to favour, or else they are a displacement of
home similar manufactures that presumably are not more hurtful.
spirits.
A second object is to help French small farmers and gardeners
to supply our markets with eggs and vegetables, both of which, Market for
speaking generally, could be produced as well and as cheaply in produce.
the south of England and the south of Ireland.
farm petty
Include
transference
of British
shipping.
Appendix Q,
p. 106.
State service
contem-
plated.
British
weakness.
Intra-impe-
rial rela-
tions.
Bounties.
Letter to Board of Trade.
A third object is to erect a universal system of manufacturing
industry, in the accomplishment of which they cannot but be
competitors with ourselves, and indeed abstractors.
24
A fourth object is to rear a great industry in fisheries.
A fifth is to possess themselves of British lines of packet
communication. These carry along with them a great deal of
commerce. A letter recently published in the Times attributes
the supremacy of British merchants on the west coast of South
America to the lines of packets between Great Britain and these
parts.
A sixth is to divide with us our general shipping business.
A seventh is to provide by these three last means a nursery for
seamen and a supply both of officers and men ready for her navy.
An eighth object is to have ready, and on all seas, built so as
to be instantly available, a number of " Alabamas," and these com-
manded by officers who are acquainted with the British and all
other coasts.
A ninth is to transfer the warehousing or entrepôt business,
which for so long a time it has been the policy of British statesmen
to create and maintain, from this country to France.
A tenth is to assure herself of a supply of coal in the most
throughgoing manner, and
An eleventh to weaken us-by our depriving ourselves (1) of
the power to withhold our coal; (2) of the means of negotiating
favourable treaties with other countries, and cultivating friendly
relations with them; and of (3) some of the readiest and best
means of raising revenue.
A twelfth, to tie our hands in a way most inconvenient, as to
our intra-imperial relations, which may cause, in ways that cannot
be formulated beforehand, great inconvenience, both to the mother
country and the colonies. This may be made too manifest when
the Empire Conference meets in February on the subject.
This work they set themselves to in a manner thoroughly busi-
ness-like, and with a delicacy of handling, and a deliberation, which
can hardly but command success, and which contrast painfully
with the easy-going throwing away of advantages in which our
statesmen indulge themselves. There is method and progression
in their ways of accomplishing objects. If by experience they are
not satisfied with the success reached, they do not boggle over and
reject new plans because they are such. They have tried the
bounty system, and found it so efficacious that they are applying
it in all directions, as we shall see presently--to the forming a
navy with a naval reserve-and to the fostering of shipbuilding ;
Freedom of Finance.
ence of
tures.
—and there is no reason why they should stop at this particular Transfer-
manufacture; nor are they likely to do so. Let us remember, manufac-
too, that the example is likely to be infectious. The United
States, for instance, are talking about bounties; and Germany is
astute and bold. She, too, has already got some of our people and
business.
25
in finance
Too much heed cannot be paid to the necessity of keeping Freedom
our fiscal or duty system untrammelled if we are to negotiate, as, essential.
let us trust, we shall very soon, with the colonies for an improve-
ment of the existing connection. The negotiators must on no
account enter into their conferences with hands tied. The friends
of so-called free trade will gain little and may lose much if treaty
engagements with foreign nations hinder the most thorough dis-
cussion of the finance arrangements of the future empire.
In connection with this last subject of the revenue a few
observations naturally occur.
finance.
Abundance of resources is of inestimable advantage in the
government of a country. We may, and we cannot tell how soon,
have a Chancellor of the Exchequer who finds himself com-
pelled to impose more taxation for the requirements of war, an evil Freedom of
contingency to the danger of which a country with territories
lying in all parts of the globe is continually exposed. But even
in time of peace there are contingencies and opportunities which
it might be most unfortunate if we found ourselves unable to cope
with and take advantage of; there might be a retrograde move-
ment in the public receipts; there might be at length a manly
desire to adopt some system for paying off the national debt;
there might be a good scheme for acquisition of the railways
by the State; there might be a proved necessity for a large
expenditure on fortifications and canals. (A word here in behalf
of a national canal between the Forth and Clyde for war and
commercial purposes.)
France suc-
It may be said France will not succeed,-that a narrow policy will not
defeats its ends,-that Britain's greatness has been advanced by ceed?
free-trade-and that restrictions on trade ever will injure France.
What are all these but fond imaginations? Although not per-
fectly à propos to the subject, let me quote at this stage some
remarks of an English banker :--
،،
Foreigners may talk-as they have done for years—in terms of
ecstasy concerning free-trade in the abstract, but it does not after all
Letter to Board of Trade.
amount to anything. They won't open their ports, until it is made
clear to them that England must have a fair quid pro quo. Why
should they? Have they not even now all the advantages of a free
market for their produce, without the unpleasantness of competi-
tion in their home markets, which they would, no doubt, feel under
genuine free-trade. The free-trade question seems to me to stand on
the same footing as that of universal peace. There are very few who
would venture to deny that universal peace would be a highly desirable
and beneficial thing; yet there are not many who are satisfied that the
policy of unqualified moral suasion,-the disbandment of our armies
and abolition of our navy,-would bring that blessing most surely
upon the world. On the contrary, the vast majority of people think
that, if we were to do away with our military and naval forces, we
should be gobbled up by some unscrupulous neighbour. Exactly so
with our trade-free-trade. We may call it that if we like, but the
fact remains unchanged. . . . Import duties may be undesirable; but
so are standing armies. We cannot in this world have the absolutely
good and perfect; let us then try to approximate as closely as may be,
choosing the lesser evils and shunning the greater. With our vast
empire there is no country under the sun that could arrange a tariff
Cosmopoli- with so little injury to itself as we could. England does not desire to
tanism.
isolate herself, but she must not allow her cosmopolitanism to override
her independence and commercial and maritime supremacy. . . . At
a debating society of which a friend of mine is a member, and where
the working-man element is strongly represented, a debate was recently
held on the pure and simple question of Free-Trade v. Protection,' and
the victory rested with the latter party by a large majority of those
present. . . . The working classes are becoming thoroughly in earnest
and very savage over this matter, and as they have the votes, we may
depend upon it that sooner or later they will have their way.'
Analogy
from pro-
posed dis-
armament
of nations.
26
Shipping
bounties
will be
effectual.
""
p. 106.
If the bounties which, it is alleged, are small, on lump sugar,
have almost extinguished that trade among us, which is unques-
tionable and unquestioned, what reason is there to conclude that a
like policy applied with a lavish liberality to shipping will not
largely, and to our loss of trade, succeed also? The shipowners,
Appendix Q, not only as individuals, but in the most authoritative form in
which they can speak collectively, and the Chambers of Com-
merce which have memorialised, declare distinctly that there will
be a large measure of success, and this at our cost. I know that,
in the quarters concerned, ships are spoken of as cosmopolitan,
and that in this spirit, the transference of many is contemplated
and provided for, or even purposed. This may or may not be un-
patriotic. It cannot be stigmatised as disloyal, and far less as
illegal, as long as the Government express no dislike of it, and
make no attempt to interfere with it, and do not object to a
practice already in activity, whereby ships which are owned by
The Board's conceptions.
27
Britons sail, as I know they do now, under a foreign flag, c.g., the
Spanish.
analogies
dies were
A strange change has come over our vision and our senti- The Board's
ments, if such transactions, winked at if not encouraged, are not fallacious.
seen and felt to be playing into the hands of foreigners who are
already our rivals in the arts of peace, and may become, all
the more in consequence of our helpful nonchalance as to
shipping, our enemies by sea and land. The Board can hardly
be in accord with other departments of the Government
if it looks with unconcern on the transference to any other
nationality of not merely many single ships, but of our estab-
lished lines of packet steamers. Yet, as if it were quite un-
important and possibly harmless, it writes:-"Many countries
have given, and apparently will give, subsidies to particular lines
of their own steamers, and we have not, on that account, subjected
them to additional taxation." Well, perhaps we ought to have
acted differently; but our present stage is more one in which to
raise the question, How shall we deal with such cases? than one in
which we are called to decide definitely and pronounce in favour
of discriminating duties or charges. Now for facts: A great
transatlantic shipping firm writes me on the subject: from their What subsi-
communication I gather that not "many," but very few, countries really for.
indeed have given subsidies. I must suppose from the Board's
letter that there is at least some one country that has done so;
that is, has subsidised a line of packets between the United
Kingdom and itself. But, presuming it is so, my thorough con-
viction is that the "subsidies" were payments for postal service
performed to the Government, and such therefore as cannot with
any fairness or reason be adduced and pleaded as an excuse for
the Board's regarding with complacency or favouring a systematic,
long-forward, guaranteed system of building up thoroughly the abs-
traction of our ships and shipbuilders, directly, a commercial, and
indirectly, a State navy, by means of a scheme of bounties promised
where no service of that or any other kind, except in war, is to be
performed, and where the voyages are undetermined, many or French
most of the ships being in fact not employed as "liners," but as ment.
ordinary merchant ships, on all seas and in all trades, with a
definite national purpose of (through State payments) sharing or
engrossing advantages and power, on the High Seas and the
British shores, that now are naturally ours?
aggrandise-
There appears to me to be, in the paragraph from which I first
quoted, a desire to denote if not satisfaction with, at least recon-
ciliation to, projects which cannot be other than extensively
Letter to Board of Trade.
on rags,
injurious to ourselves, inasmuch as they are calculated and
designed to abstract from ships and traffic that are, and will be,
conducted by our capital and in our bottoms. Will not
foreigners receive this impression when they read the words that
Export duty immediately precede?" France, for the benefit of her paper-
makers, imposed an export duty on rags, but we did not the less
on that account admit French paper free." Why, at the time the
existing treaty was negotiated, this conduct of France was felt to
be a grievance and a hardship, introducing a kind of competition, to
which it was unjust as well as injudicious to subject British paper-
makers. No thanks to the Treaty that the happy and altogether
unexpected discovery of "Esparto" as a raw material mitigated
the blow and diverted attention from the wrong and scandal.
The Board's own words are a partial confirmation of this view :—
"There are many other cases [observe the strained adjective
again] in which retaliation, if adopted in the case of sugar, might
be demanded with equal justice. For instance, France" [here
follow the words already quoted]. I notice the Board allows that
in the eyes of France, at any rate, the export duty on rags is a
benefit to her paper-makers. There is, besides, an awkward
petitio principii. Why is it that we do admit French paper
free? Because the Treaty prevents us from imposing a duty.
Why does the Treaty prevent us from imposing a duty? Because
through oversight (for I dare not assume anything else), Cobden
allowed the disparity to slip into the unfortunate national
arrangement.
Fish
I
28
Though I cannot agree with the Board that there are many
other gross cases, such as that of rags, I mention the two follow-
ing glaring cases of self-regardfulness :-The French fish on the
Scottish coasts, and can sell their takes in our markets, but
our Scotch fishermen are charged a considerable duty on what they
catch and send to France. She stipulates that we shall impose no
export duty on our coal, but reserves her import duties thereon.
One might have expected the "spoil" would be at least divided
Treaty one- half and half. The whole warp and woof of the treaty is of the
sided.
Coal.
same one-sided character. Throughout we abjure our import
duties; she retains hers. The object and effect is to put her
manufactures into a better position than ours. The fact is, our
word "free-trade" is inappropriate; we have (with such a glaring
exception as the rag prohibition) freedom of manufacture, Libre
travail, but not its complement, Libre échange. That is to say,
the Frenchman has the right and power to sell his stuff free of
duty in our markets. The Briton has not the corresponding right
Patents and Income-Tax: their effect.
29
Advantages
the French.
and power to sell his in the French, but must pay there a large
protective duty. Of course this is inequality; call it “free,” it is
not “fair” trade, it is not equal competition. And the difference.
is a practical one; the advantage is a very appreciable one. Here
are two respects :-First, whichever market in either of the king-
doms affords at any time the best profit, the Frenchman can supply
it. The Briton is confined to his own. Second, the field of oper- conceded to
ations to the Frenchman is a population of seventy-five millions,
of which forty are a preserve; to the Briton, only thirty-five
millions, less than half, all entirely open to world-wide competi-
tion. The natural consequence is a building up of rival industries,
and, which is an actuality, the forming of establishments there by
Britons, in order to the encouragement of which we very simply
bind ourselves to continue to extend the strange treaty advantages,
and to submit to the still more strange disadvantages for ten years,
coal and all. To the United States there is a still more formidable
process of gradual removal in progress. Paisley may be referred
to for evidence. I think the same is going forward towards
Germany.
The patent laws of France are constructed on the same shrewd Patents.
previsions. A patent is not valid if not worked in France within
two years.
If therefore a newly patented article is one not requir-
ing to be produced in quantities beyond the reach of an ordinary
limited company, France insures to herself that the new manu-
facture for the supply of all markets shall be on her soil and
not on British. This exhibits one of the ways in which our not
understood patent system works against British interests. The
United States do not stand in the same exposed position as we,
they being shielded by Protectionism.
A word as to income-tax, which is payable on premises and on Income-tax.
profits. Some people may say a sixpenny income-tax to which our
rivals abroad have nothing analogous is not sufficient of itself
to turn the scale against our country. I am not sure of this,
because, as there is no return of duty paid back when times are bad,
practically the tax, which we have known as high as a shilling or
more, is considerably higher than it seems. Anyway, it is incon-
sistent with the "even beam," and, as an addition to other disad-
vantages, it may exert a real adverse influence. Besides, would it
not be strict justice and comely to impose on imported manufactures
an equivalent? Taking another point of view-is it not an obvious
gain to the State to have trades carried on within it that both
directly and indirectly augment its revenues?
Letter to Board of Trade.
These burdens-liability to restraints on the use of inven-
tions (which are generally removable by paying royalties to
patentees, that is, by voluntary subjection to a tax payable
whether the payer's business is profitable or is not) and
income-tax-belong to a class which appears to have escaped
the notice, or to have been ignorantly considered too small for the
notice, of the statesmen who are chiefly responsible for the form
in which free-trade has been embodied in British law and practice.
As to the former burden-patents-no doubt Mr. Cobden and a
good many of the foremost politicians of his time were opposed to
them, and may have expected they would be abolished. I have
elsewhere stated my conviction that patents and free-trade are
incompatibles. The only way of dealing with the difficulty, unless
patents and income-tax are to cease, is to impose a moderate import
duty on all manufactures, and on such products of industry as do
not belong to the inevitable-monopoly category to which goods
and timber belong. This protective duty would be at the same
time a sort of buffer or equalising margin, such as I have already
spoken of as being selon règle and usual in all ordinary dealings
The turn of between man and man, and especially necessary for the "turn
the beam
should be
given
Britons.
of the beam" (which, in fact, the British Customs grant in
all its weighings for duty) something corresponding to it would
be, to say the least, sensible in favour of our own country, and
particularly of existing establishments in it which built up our
trade and thereby founded our commercial prosperity, and opened
the way for a liberal system of finance, which it would be hard
that they should suffer from, seeing that their somewhat unfavour-
able relative situation arises from no fault of their own, but from
inheriting premises which are locally beneficial. (Let the competi-
tion to be let down upon these be from within the kingdom, for on
no account may we discriminate within the kingdom, whatever we
may out of good feeling do as to foreigners.) This matter is not
one to be worked out on the cold hard figures and lines of Cocker
and Euclid. There must be a certain small amount of the fair
and sympathetic in regard to the people of our own land. Blood is
thicker than water.
Petty bur-
dens that
turn the
scale.
f
30
The two foregoing burdens are aggravated by another set of
restraints and burdens, likewise creations of British law, from
which foreign industries are free-those connected with immature
age and with hours of labour.
It has for centuries been known that wages are higher in
Small Countervailing Duty indispensable for equity. 31
in France.
of wages
England than France, and the difference was recognised as a Lower wages
justification of some protective element in the import duties
charged on manufactures-not unreasonably, because, if the nation
wishes that its own people should be employed, yet not at wages
squared (according to the Board's unacceptable idea) by lowering
these so as to permit equal or closer competition, the only possible
arithmetical adjustment that remains is by imposing a protective
duty on imports, or else by giving a bounty at home. The former
is at once simpler and more suitable. This view, however-the
propriety of taking into consideration the rate of wages and the
physical requirements, along with the moral and intellectual
standard, expected of our people—will appear strange to not a few,
who will readily assent to another and less extensive application of
the principle involved. These might allege that the "propriety "
just spoken of amounts to artificial regulation of wages, and to a should rate
State interference which is not legitimate; yet they would admit that, affect import
in so far as by State regulation of ages and hours there has been
interference, the result of which is in effect to impose a burden and
make manufacturing more expensive, the plea for some sort of
compensation is tenable. These just-minded persons may never-
theless ask if the impost is not too slight to be deserving of regard,
or to be capable of being dealt with? I am afraid, and let me
add, convinced, that in the modern system of manufacture—that
of large extent of operations with a narrow margin-the difference,
extending as it does to a lessened daily output, involves a greater
cost of production in many industries, chiefly those in which the
use of machinery has at the same time removed the advantage of
old enjoyed as a compensation, viz., the English labourer's greater
muscular power. For rectification of this injury the moderate
protective duty already proposed is adequate and available.
duties?
port duty
I have used the word moderate, because it is not such a protec- Small im-
tion as France and the United States or Germany affect that is in defensible.
my mind. I say nothing in behalf of theirs; but I hope enough
has been said with regard to such a one as I plead for, to show
that the reasons or prejudices on account of which the nation
rushed in haste from a highly protective tariff to the other extreme
of a total and almost universal abolition of import duties, do not
here apply. One, though only a minor, objection to high duties
commonly heard, that they tempt to illicit trading, is also inapplic-
able, as well as the allegation that home prices would be made.
appreciably dearer, or dearer to a degree that interferes with con-
sumption or use. How, and how far, such duties might divert or
embarrass the trade-after all not an important one, or one very
Letter to Board of Trade.
desirable to foster-of the persons who export hence articles of
foreign manufacture, let others judge. The warehousing system
mostly meets the case.
A judicial or statesmanly mind, unperverted by prepossessions,
will naturally go further, and ask politicians whether true, honest
discharge of their duty to act equitably, does not, in conjunction
with their duty to promote the national interests, tend in the
following direction—to make all the rest of the taxation or burdens
they impose bear no heavier on the Queen's subjects than on
foreigners. Yes, if there be any difference or leaning, how-
ever small, that it shall be in favour of the former, not, as at
present, of the latter. At present it is all the wrong or impolitic
way; the master manufacturer bears, besides income-tax, taxes
turers liable direct and indirect without number, charged against himself, and,
British
manufac-
to taxes.
Equity in
taxation.
His foreign
rival is not
a useful
citizen.
Desire for
fair play.
#
32
through the medium of the wages he pays, a considerable amount
charged upon the persons he employs; at any rate, the manufac-
tory does. How can he or it be compensated for this weight which
is not borne by his and its rivals abroad, who contribute nothing
to the British Exchequer nor to local imposts, except by being
exempted from a slight burden, substantially a countervailing
duty, levied at the ports of entry? That duty, of course, would
help them nothing in the open markets of the world, but it would
be worth something to them. If any inquirer suggests that the
foreign rival pays what is equivalent in his own country, the
answer is twofold; first, that is doubtful, at any rate is not
universal; secondly, admitting it, the thing does not meet the
case. He pays nothing to our revenues; the others do. Besides,
the manufactory abroad is not maintaining men who will be ready
to act as volunteers in peace, trained and ready for the Queen's
service in war, nor families who will be customers and welfare-
promoters on all hands and every day to that portion of the
Queen's subjects among whom they dwell. Ask any tradesman or
professional who render him most service,-the master and men who
work in his neighbourhood, or the foreigners that send over their
completely prepared articles? The answer will be unequivocal ;
the former, of course, for the latter do nothing on his behalf.
A
Kl
There are, however, many persons who have been drilled into
disaccord with these old-fashioned and natural feelings, who yet are
not hardened against the obligation to require, as an element of
free-trade, that it shall also comprehend the characteristic of being
fair trade. To them may hopefully be addressed an appeal for
equity and equality within the region of Custom-house duties.
Unfair burdens and treatment.
33
import and
have the
same effect.
As between buyer and seller there is no difference, in effect upon
prices and their business, between export duties and import duties.
Absence of export duties in the United Kingdom cannot be called In business
an advantage, if an equivalent import duty is levied in France on export duties
whatever goods the British manufacturer is liable to import duty
there, while his rival pays no such duty, raw material being
admitted free, the two Governments are practically imposing a
differential duty. The British Government, in entering on a treaty
in which such a disparity is established, though not benefited by
the duty, is a party to tying this differential burden around the
neck of the manufacturers to whom it ought to see justice done.
No doubt the differential duty is seldom paid, and every year it
will be paid less and less, just because through this unfortunate
treaty trade is not free, there is no freedom to sell in France,
whereas the French are free to sell in England.
The same is true with regard to patents. To the manufacturer, Patents.
the burden, often greater than the profits, of paying for inven-
tions by a tax to patentees is the very same as paying for them by
a tax to Government. It is a differential duty in every instance
where the British manufacturer has the burden to bear and the
Frenchman has not. There is no assurance that the demands on
both, for the use of an invention, will be the same in amount. Often,
inventions are patented in the United Kingdom and not in France.
As to Holland and Switzerland and some other places, no patents
are ever granted there. The case is not mended by the only way
in which exemption from the burden can be had,-refusal to use
the inventions. I might, however, adduce cases in which there is
no refusal to take the benefit, but cruel refusal to allow it. This is
permitted under the fierce monopoly which our Patent laws, framed
to suit one side only, institute-laws which not a few of our
fellow-citizens blindly applaud.
tanism.
In practice, if not also in feeling, the patent interest has Cosmopoli-
become decidedly cosmopolitan and non-national. This is much.
to be regretted, because it threatens serious evil. There is danger
that a similar frame of mind and way of looking at things may,
through bad copyright practice, infect and deteriorate our literature.
With so many foreign merchants among us, and so many foreigu
names among our tradesmen, we need not wonder if, insidiously,
the same spirit is eating into the vitals of our commercial system.
It has become manifest, and is avowed by what used of all others
in old times to be most patriotic,-the shipping interest.
--
In running races it is common enough to require certain com-
с
34
Letter to Board of Trade.
from a race.
petitors to carry additional weight. Who, notwithstanding, ever
heard of the owner of a stud systematically burdening his horses.
so as to hinder them on the field or road? Yet this is substan-
Illustration tially what the British statesmen do when they subject their
industries to the restraints and burdens of French treaties, and to
Patent laws such as the present ones! The plea in defence of the
treaty is-Unless we submit to the French terms we shall not be
allowed to sell on Gallican soil. Were the worst to be threatened,
what simpler than to tell our good neighbours that we on our side
extend far greater advantages to France, and that it is our purpose
to consider whether, following their example, we shall not withdraw
from her the full enjoyment of our soil, that has been enriching her
and rather impoverishing than enriching our own country, but add-
ing, in all sincerity and the utmost force, that we are so earnestly
desirous to continue on the best and most friendly of footings that
we cannot longer submit our population to the galling yoke of an
irritating and injurious inequality? Away with the conceit, so
fatal and so fatalistic, that we have become apostles of free-trade,
and must be ready to perish as a testimony to our confidence that
our dogmas are true and that of all the rest of mankind false !
What connection has that dogma with a treaty which is not,
though fondly hugged as, a free-trade arrangement?
How to
maintain
friendly
relations.
P. 11.
French man-
ner of deal-
ing with
duties better
than ours.
Currants.
J
The French proceed in the matter of Customs Duties in a
much more discriminating and considerate manner than we do.
By imposing "general" or maximum duties they are able to offer
favours in return for favours to be asked. Their statesmen, con-
sequently, in all treaty negotiations, occupy a much more favourable
ground than our statesmen can.
Our system of wholesale clearing away of duties, without
leaving any root in the soil, has another bad accompaniment.
It chains finance, inasmuch as it prevents us from easily
resuming them, and from raising their rates; besides, on many
articles revenue is hereby relinquished, such as would be of
immense advantage at all times in our country. It was a grand
stroke, for instance, to abandon the duty on currants, yet most
probably the duty which we threw away did not much lower the
price to the British consumer, but rather raised the emoluments
of the Mediterranean producer. I make this statement without
examining the figures (which are not within my reach), but with
perfect confidence that remissions of the kind are likely to have
such an effect. How much better not to have made the remission,
and to gain the advantage of sixpenny telegrams or the abolition
French Bounty System unprecedented.
35
of receipt stamps! Of course, when the French maximum duties
are reduced by treaty, they are not abolished, but left high enough
to cover the incidental burdens to which I have just been advert-
ing, and I may boldly say, a great many other contingencies,
including the main object, protection.
..
scheme ex-
The British Government cannot too strenuously apprehend the The bounty
peculiarity of the bounty movement of France. It is the institu- traordinary
tion, on a vast, perhaps it might be called an overwhelming, scale,
of a system of payments with the obvious intention on the part of
the bounty-giving country to secure for herself, at the expense of
the bounty-receiving country, as large a share as she could pos-
sibly abstract of the latter's commerce and ships. It is the nation
not so much protecting trades and individual traders as becoming
herself an embodied commercial corporation for political aggran-
disement, with aggravating circumstances.
should do.
I have little doubt that the French policy will be successful,
and whether successful or not, that it will be attempted, unless
some proceedings which either are to be taken by us, or, as they
think, might be taken by us, deter our neighbours. Some cosmo-
politan may ask: Do you mean that we should take steps to
prevent France from doing what she has a perfect right to do?
My answer is: Though I doubt whether the intended action of
France is consistent with international comity, No, but we may what we
discourage her; and there is no better way to do this than by
recovering our liberty of action which through treaty bonds at
present we impair and surrender. Still more would I abstain
from entering into another treaty framed on any lines at all
approaching those of the present one. I would not even promise
by treaty the "most favoured nation terms" for a period longer
than twelve months. Most blinding and silencing is the connec-
tion with the 1860 treaty of two such trusted names as Mr. Cobden
and Mr. Gladstone.
opinion.
The anticipations, indulgence in which induced the nation to Change of
enter into the present treaty with France, have been disappointed,
and there is widespread consciousness that our position is not
satisfactory; if, indeed, it be not humiliating, as well as unworthy.
This feeling is by no means confined to Conservatives. It is shared
in, and often boldly declared, by Liberals. Consistent free-traders
publicly avow that only exceptional circumstances justify treaties.
of commerce, whatever their conditions.
Letter to Board of Trade.
Let me here present some extracts from the edition of M'Cul-
loch's Commercial Dictionary, issued in 1859, the year immediately
preceding that of the treaty:-
36
M'Culloch's
condemna-
mercial
treaties.
"A great deal of stress has usually been laid upon the advantages
tion of com- supposed to be derived from the privileges sometimes conceded in
commercial treaties; but we believe that those who inquire into the
subject will find that such concessions have, in every case, been not
only injurious to the party making them, but also to the party in
whose favour they have been made. All really beneficial com-
mercial transactions are bottomed on a fair principle of reciprocity.
The justness of these principles, we are glad to observe, is now begin-
ning to be very generally admitted. Stipulations as to duties and
custom-house regulations are disappearing from commercial treaties;
and it is to be hoped that, at no distant period, every trace of them
may have vanished.”
A small re-
gistration
duty.
Surely the conditions contained in the existing treaty were
not such as to justify the departure from a sound principle, still
less to warrant continuance in the abnormal course. If it be
Their rela- proved that to maintain free-trade is an advantage, declinature to
tion to free-
trade.
enter into treaty obligations will only the better enable us to
cherish it. But I certainly do entertain depressing doubts as to
the wisdom of such free-trade as is now in the ascendant. I fear
it is undermining our commercial superiority, and introducing,
besides, among ourselves, tastes and usages that are as ruinous to
our commercial prosperity as the Trojan horse was to Ilium of old.
My conviction is that public opinion has very much changed
with regard to Free-trade, and still more with regard to the French
treaty, and that, it being an acknowledged duty of the Government
to act in accord, not only with the interest but with the wishes of
A Commis- the people, a Commission of intelligent merchants, manufacturers,
sion sug-
gested. and economists, should be appointed for the purpose of making
inquiries both in London and in the manufacturing and mining
districts, and particularly at the sea-ports, as to what are really
the present opinions of the persons most qualified to advise, and
the grounds on which these rest, and that no treaty should be
negotiated until a report is made and considered.
It appears to me likewise to be expedient to levy on all commo-
dities that are not raw materials nor main articles of food, that is,
where it can be done without the probability of injury to commerce,
a small duty, sufficient to turn the beam in favour of the mother-
country and the colonies. May I respectfully suggest that the
right honourable Board should not pronounce emphatically against
any course of fiscal legislation which may clash with reasonable
Observations on the Board's manifesto.
37
or even somewhat, as we may think them, unreasonable, desires
of our fellow-subjects in other parts of the empire.
There are passages in the Board's manifesto on which a few
observations may be made. It says "The acceptance of the
principle contended for, of countervailing bounties by duties, Countervail-
would carry us one step further to the theory of reciprocity, and
lead us to the imposition of retaliatory protective duties.”
ing duties.
1. The mode of meeting the difficulties of the case which the
foregoing pages favour, viz., a low general import duty, is not
liable to the above objection.
2. This low duty is not (fairly) liable to the objections raised
against protection.
3. The French, by their clever system of universal " general
duties on manufactures, escape whatever odium and unpleasant-
ness there may be in retaliating. Their system enables them to
attain the same end by only withholding special favours.
4. As to reciprocity, so far as it means good-will, a disposition
to return benefit for benefit, it is right. But a great country like
ours cannot expect to get, except perhaps from the United States,
an equivalent or equal return for what it gives.
>>
The next sentence is one applicable mutatis mutandis to
shipping-"The bounties on sugar, so far as they exist at
are direct and obvious bribes by a foreign GOVERNMENT.”
word italicised is emphatic. They are not concealed gifts, like
ordinary bribes, however.
In an earlier paragraph it tells us-"It is sometimes said that
the attack made upon the sugar interests by means of bounties is
only the beginning and prelude to attacks upon more important
industries, and that one by one the trades of the country will be
attacked and ruined. Such a fear is entirely [!] chimerical; any
Government which should pursue such a course would soon find
itself bankrupt. . . .”
1. Not chimerical, and, in spite of the great cost, France is
actually doing the thing that may make her "bankrupt" [!] on a
grand scale (lessening yearly, however) as to shipping. But,
2. The cost is not so tremendous as it may seem, for few indus-
tries are so huge as sugar, and the expenditure would only be
incurred where needful. If by treaty we open our markets effect-
ually, and she succeeds without bounties, why, of course, these are
not required and not paid.
3. The end in view she is attaining. The language of the
manifesto is therefore too confident.
}
all, Bounties are
bribes, and
The are within
compass.
Relation of
this question
to party
politics.
¡
Something
the great of
the land
might do.
App. II,
p. 149.
38
Letter to Board of Trade.
I close with two observations.
First: There cannot legitimately and safely be party spirit
within the range of commercial policy. It must never intrude on
that neutral region. Happily both parties of the State are about
equally committed to free-trade, and equally free to hold it in
abeyance. The consequences, however, of doggedly refusing to
inquire into facts will be far more serious to the Liberal party
than to the Conservative. It is likely very soon to estrange from
it its main strength, artisans.
Second: The nobles of this country, and the leaders of fashion,
exhibit too little desire to benefit their fellow-subjects by con-
suming and using articles made within the realm. Fashion ought
to be in accord with patriotism, and patriotism plainly points to
preference of home stuffs. The Queen and the Royal Family have
only, I am sure, to see that they would really be benefiting the
people, of whom they are the decus et tutamen, when they prefer
home manufactures to foreign. A people which all over the world
have so much leading and influence, would be acting loyally and
sensibly, and in a manner worthy of themselves, if they give their
fellow-subjects, and not strangers, the widely diffused and potent
influence of their example in respect of fashions and tastes.
I
I submit these notes with much respect, hoping that they will
be useful. They come from one who has long considered the
subject from a practical standpoint, and embody some views which
he has not seen elsewhere presented. The able President will, I
trust, pardon the roughness and angularity of the road metal which
he is invited to travel over, or even to recognise as serviceably
laid on the highway of national and industrial progress.
I have the honour to be,
SIR,
Your faithful Servant,
R. A. MACFIE.
39
II.
MR. CHAMBERLAIN'S SPEECH AT BIRMINGHAM
ON 28TH DECEMBER, SLIGHTLY ABRIDGED,
With Comments on it and the French Shipping Bounties.
"It had always been the policy, ever since free-trade was intro-
duced, to prefer the interests of the many to those of the few.”
the nation.
A sound principle: the allegation is that it is applied wrongly. Interest of
and that the nation, which is more than an aggregation of indivi-
duals, is suffering in consequence.
Our sailors are "few," but they are indispensable. The
number of persons affected is not small: about as many men are
employed as in that grand national industry, the east coast herring-
fisheries of Scotland.
"It was a very distressing thing that any manufacturer should lose
his profits, or any workman his employment; but if they were to con-
sider in every case only individual interests, then free-trade must go
altogether to the wall."
No doubt, yet nobody speaks of only individual interests.
exceptional.
The sugar case is exceptional, as it is suffering from the action sugar case
of a friendly government, which givés, in this case only, bounties
calculated, if not also intended, to deprive our country of a well-
established staple trade.
C
"He could point out many cases infinitely harder than that of the
sugar-refiners. Let him take the case of the Coventry manufacturers.
The large silk industry had been almost destroyed by the effect of free-
trade in opening our market to French silk, when other foreign markets
were closed to our productions."
Surely this is enough to make statesmen reconsider their
course, especially as its expediency was never argued out. What
was argued out was the food monopoly.
"Coventry had been especially unfortunate. The English market Coventry.
was open for foreign watches, whereas a Coventry manufacturer could
not get an English watch into America without paying a prohibitive
duty."
In the preceding pages this has been shown to be a hardship,
or the action of our Government a sort of connivance at wrong,
whereby this nation suffers the loss of an industry that employs her
people. (Does Coventry stand alone?)
"If the argument of the sugar-refiners was that their case is wholly
Speech of President of Board of Trade.
exceptional, he must say that that had been the case with all protec-
tionists ever since the world began. He could not see the difference
between the case of those connected with sugar and those engaged in
other trades."
Consular
report on
proposed
shipping
bounties.
40
The right honourable gentleman must mean that he would not
acknowledge that the difference is conclusive, for he does not deny
that sugar is exceptional in being stimulated by bounties, though
that it will be exceptional long we cannot anticipate, when, on the
Nonchalance. one hand, we behold such nonchalance in high quarters in submit-
ting to such an attack, and, on the other hand, have become so
continually aware of further movements of the same kind in
France, and not France only, for stimulating shipping and ship-
building by bounties. An ordinary bounty is a national aggres-
sion on British interests, a State scheme to wile away our chefs
d'industrie, and much more.
But now, as to shipping bounties. The reader will do well to
turn to Parliamentary Return C. 2666-" Correspondence relative
to the French Mercantile Marine Bill." He will find there the
following words of Consul Bernal of Havre, transmitted by Lord
Lyons :-
Living, as I do, at a port where we do such a large over-sea
trade, I cannot help seeing of what serious importance to our shipping
interest is the proposed system. I consider it to be almost worse than
a 'surtaxe de pavillon.' That would only affect trade to and from
French ports; but while the system of bounties does so to some extent
also, it has a yet wider effect, for under it, wherever a French vessel
may be doing over-sea voyages, it will be in receipt of a bounty. For
instance, French ships often remain eighteen months and more in the
East, making voyages between different ports in those seas, and they
will be earning a bounty for every thousand miles thereon; and should
they at the end of the time bring a cargo to a British port, they will
be able to carry it at a less rate than our own ships. In short, the
law is one of pure protection."
CC
sive charac-
ter.
These words read strong, but perhaps they ought to be under-
stood in a sense a hundredfold stronger than they read. I have just
pointed out to the reader that the law is characterised much too
Their offen- mildly when it is called "one of pure protection." There is the
widest of differences. Protection aims at guarding commerce
within the protected country. This unprecedented proposition.
aims at aggression outside on all seas in semblance, against all
countries that own ships, but, really and in intended result, mainly
on our own country, and this at a time when we are, as if we were
treated in the best possible manner, consenting to negotiate a
A remarkable calculation.
4I
commercial treaty! Lord Granville's answer to Lord Lyons is
consistent with the manly spirit of statesmen of old :----
Office objec-
"It is a fair matter of representation that such bounties are con- Foreign
trary to the spirit and intention of our commercial treaties, and will tion.
produce the very effect which their stipulations with reference to
import duties are intended to prevent."
Yes, but they will produce effects far wider and far worse.
The rest of his Lordship's letter, taken in connection with this, is
a tacit condemnation (as I think, and few reflecting persons can
avoid thinking so) of our treaties, and should logically, perhaps
soon will, be followed by withdrawal from negotiations, unless on
an entirely new and independent footing.
berlain on
"He remembered his own experience in business, and might state Mr. Cham-
that the firm with which he was then connected had to compete with hours of
French and German manufacturers in France and Belgium. The work- work.
men worked twelve hours a day, and six days a week.
Then came
the Factory Act, which he had always held to be a most beneficent
measure, under the operation of which his firm were unable to employ
their workmen for more than fifty-four hours a week, as against the
seventy-two hours a week of the French and Belgian workmen. By
the same reasoning as that now employed they might have asked the
Government for a countervailing duty to repay them for their inability
to keep their works going as long as the French and Belgian manu-
factories."
in Britain
vour foreign
In the Appendix will be found a sickening amount of confirma-
tion of the representation here given on the highest authority. I
might put the case thus:-A manufacturer abroad, who employs Short hours
men for seventy-two hours, inasmuch as he will get the same greatly fa-
amount of labour per hour as Mr. Chamberlain's late firm, receives rivals.
an excess of value of £1800 on every £5400 spent in wages (even
if the rate of wage per day is no lower). To this enormous pecu- See page 63.
niary advantage must be added the greater amount of work, and,
therefore, of margins for profit, which the ability of using his
premises and machinery so much longer carries with it. If I
assume that the manufactory pays in wages £54,000, the gain, in
like manner stated without a supplement, is no less than £18,000.
I might go on and assume £540,000, and show that the dis-
advantage to a large concern carried on among ourselves, is P. 63.
the appalling sum of £180,000. Will any sane person believe
Parliament contemplated such an inequality-such a crushing
disparity when it amended our laws? Mr. Chamberlain was,
therefore, quite warranted in suggesting that there might be
some countervailing appliance wanted, but he does not present
Pag
42
Speech of President of Board of Trade.
the case as I would when he says it is "to repay them," the
manufacturers, for the real object is deeper, larger, and more im-
portant, viz., to prevent foreigners from abstracting our industries,
our invaluable property or potentiality. Cosmopolitan members
of the Government appear not to apprehend matters as they are.
in law-mak-
ing.
As to the benevolence justly credited to British philanthropy
by the eminent sufferer by it, an unsophisticated economist would
Philanthropy argue thus :-There is here an admitted bad effect of British
benevolent legislation. We have sought the good of the unpro-
tected employed, but we do not think it fair to attain this at the
expense of the employers, and none the less when we learn on
this unquestionable authority how serious the effect is, and when
we realise the far greater loss, the nation will have yearly more
and more to reproach itself for inflicting on itself. The situation
is one easily rectified by imposing a slight duty on importation.
The farmers'
sufferings
arise from
too high
rents, not
bad laws.
"Then there was a still more important industry, that of agricul-
ture; during the past few years great numbers of farmers had been
ruined, and land was falling out of cultivation everywhere. If they
considered the interests of classes, the agriculturists should be the first
to claim their attention."
I apprehend that the cause of the farmers' sufferings lies in
the too high amount of rent which they have been paying, some-
times accompanied with deficiency of skill and capital. Land,
being limited in quantity within the kingdom, is a sort of mono-
poly. Nevertheless, if State burdens anywise fall unduly upon
it and its cultivators, relief may be fairly claimed, for the nation
wishes justice to all classes, proprietors included.
"The farmers would doubtless say, 'We have to compete with corn
from Canada and the United States, in both of which countries the
Government grant large subsidies to promote growth of corn. We
claim that there be such a duty as in our opinion would countervail.'"
It is not consistent with fact that any Government does give
subsidies to farmers. What is alleged by the Board, surely very
fantastically, is that free gifts of land and grants for the formation
of canals have the same effect as bounties. I do not admit that
they have, but at any rate they are not of the same nature.
Whatever effect they have tends to reduce rent.
"Thus we might go on and break down every portion of free-
trade."
A very queer way indeed of putting matters.
“With which, in his opinion, the prosperity of the country was
identified, and, above all, the welfare of the working-classes," etc.
French Shipping Bounties.
43
All this I have sufficiently answered in the preceding part of
this brochure. I only wish I could have executed my work better.
"In the matter of sugar bounties, he thought the action of foreign Who are
Governments foolish in the extreme.'
foolish?
""
No doubt foreign Governments will allege that they should be
allowed to judge for themselves without being condemned in this
absolute wisdom fashion. Which side is foolish?
"In order to foster a particular trade, they took out of the pockets
of their own tax-payers large sums of money.'
""
bounties are
A shrewd man of business, well posted up in the sugar bounties sugar
question, told me some time ago that in his opinion the French are worth their
acting wisely, for, as a nation, they gain by them more than they France.
lose.
cost to
In connection with this subject of bounties, the concluding part
of the following speech by the Chairman of the Edinburgh Cham-
ber of Commerce, who has admirable business opportunities for
knowing what he is speaking about, is highly significant :-
Shipowners
interview
"The Chamber would recollect that there was a special meeting to
consider the question, and a memorial was adopted and sent to Her
Majesty's Government. No further action had been taken by the
Chamber; but in the interval a very influential deputation of ship-
owners had an interview with Lord Granville. His Lordship suggested
that it was desirable the proceedings should not be public, his reason
apparently being that he was desirous that as little as possible should
be done to intensify the feeling which the French might be supposed to
have in favour of a measure whose object was to increase the French
shipping interest. His Lordship, however, spoke very strongly in this
sense, that he and the Government considered it a very improper in foreign
measure; and, indeed, he used some very strong language which was Office.
hardly diplomatic; but he deprecated anything being done to show
panic or alarm in this country, because, evidently, if we convinced the
French people that we regarded their measure as one calculated to give
them the traffic of the world, and correspondingly to depress our
interest, it was clear they would only be encouraged to go further in
the same direction. There had been really nothing new, so far as he
(Mr. Currie¹) was aware, since then. The Government were quite well
aware of the importance of the subject; they saw it to be a very serious
thing, one menacing to a very serious extent- a much more serious
extent than the question of the sugar bounties-the position of this
country, because not merely did it involve the much larger amount of
capital and the much larger number of people employed in the particu-
lar branch of industry, but it also involved the question of national
security. (Hear, hear.) The Government were perfectly well aware
of that, and he did not think it was possible for the Chamber to do
1 Brother of the honourable Member for Perthshire.
Shipping
bounties
popular in
France.
England
an apostle !
French ex-
cuse for
shipping
bounties.
Sugar
planters.
44
Speech of President of Board of Trade.
more than it had done. He was quite sure that if the Government
could do anything to avert what would practically be a great mischief,
they would do it. The objectionable measure was popular with the
French; and it was of no avail to characterise their conduct as foolish
unless we went further and characterised as foolish the conduct of any
nation which chose to keep up a standing army or navy. We had not
exactly come to the point at which we could at all events persuade the
French people of that."
Before concluding the right honourable gentleman said—
"He did not think it worth while for the sugar manufacturers to
prove the Government inconsistent, because the logical result would be
that the Government would cease to do anything to forward their
views. ... They maintained that it was good for all the world that
free-trade principles should universally prevail, and England was the
great apostle of free-trade. We preached it in season and out of season,
in reference to every question, and therefore, even in this case.
The Government held it to be their duty to advocate the doctrines of
free-trade, and they asked those Governments to furnish them
with any information on the subject that they were willing to give as
to the extent and the nature of the bounties, and as to their effect upon
the foreign trade.”
•
On this, extracted from an Edinburgh paper's report, just three
short remarks:-(1.) For apostle read martyr; (2.) Again, the
propagandist mission, on which I have already animadverted; (3.)
What can be expected from Governments? The French coolly,
with regard to the shipping bounties, tells the world they are "to
compensate for charges imposed on the mercantile navy for recruit-
ing and the military navy." They "keep back 20 per cent. of the
bounty so as to increase the retiring pensions of registered seamen."
Here note, "the bounty is increased by 15 per cent. for steamers
built in France according to plans approved of by the Marine
Department," and "in case of war, merchant ships [and I suppose
crews] can be requisitioned by the State."
Before making the speech on which I have taken the liberty to
make these comments, the right honourable gentleman introduced
the connection of the West India planters with the sugar-bounty
business. It is unnecessary here to call attention to what he said
then. All good subjects of the Queen must object to invidious dis-
tinctions being drawn between those of them whose happy lot it is to
live in Great Britain, and the others who, with no less loyalty and
under greater hardships, toil on for the wealth and welfare of the
nation in outland parts.
45
III.
On Adapting the Relationship between the Mother Country
and her Colonies to their Manhood and to the Interests
of the Empire and of the People of all ranks, in
connection with planting Emigrants on unoccupied
National Territories, and with the prospects of
Industrial Employment at Home, including a glance
at the French Treaty.
[A Paper read at the Social Science Congress, 1880.]
LIMITATION of time necessitates compression. The following
paper is intended to be practical. It must be more or less discon-
nected, for in small space it has to deal with at least three great
questions of the day :-1st, The prospects of TRADE; 2d, the direc-
tion of EMIGRATION; and 3d, the maintenance of the EMPIRE.
from pros-
As to TRADE, it has, happily, for a long period gone on enlarging
its volume. It would require to do so, or there will not be found
within the British Islands sufficient employment for our constantly
increasing population. The prosperity which has swollen our sails Dangers
is itself a cause of danger. If this favouring gale has not made perity.
operations unduly expensive, and manufacturers, masters and men,
careless and too confident, both which natural consequences, I
fear, are working harm, it has certainly enabled foreigners, as well
as stimulated them, to erect establishments within their own
countries, which are steadily becoming more successful competitors,
in some cases ousting us not only from foreign and neutral markets,
but even the home and colonial ones. We have-I do not say in
the spirit of bravado, but with great simple-mindedness-opened
our ports to all comers. But the lead—which sanguine politicians
hoped it would prove-taken by the United Kingdom has not been
followed by any other people, not even by our fellow-subjects of
the Colonies. After the third of a century has elapsed since the British free-
inauguration of our free-trade policy, we find to our disappointment repudiated
that, so far from our making converts of them, these all are moving world.
in an opposite direction. Look at the ungracious colonial tariffs,
which show how little the mother country's example is appre-
ciated. Look especially at France, to propitiate or initiate which
neighbour that noble cosmopolitan Mr. Cobden, more or less
reluctantly, held in abeyance the previously dominant maxim of
trade policy
over the
46
Paper on Intra-Imperial Relations.
nurses her
industries.
the school whom he represented so ably, to avoid entering into
treaties of commerce, as being inconsistent with commercial free-
dom, and calculated to embarrass national political action. Our
estimable neighbour has, after twenty years of patience and
coddling or coaxing on our part, adhered strenuously to protec-
France tionism. When she speaks of free-trade, she means trade somewhat
liberalised no doubt, but liberalised astutely with a reserve of
protective duties sufficient to give or rather to retain-in my
opinion wisely-a turn in favour of her own manufactures.
Frenchmen appear to know that, in modern times, when opera-
tions are more and more being conducted on the principle of a
large business with comparatively small margin on each individual
transaction, a very small degree of customs protection is sufficient
to turn the scale,-not that I can call the turn they aim at a small
one by any means. If the United Kingdom is ready to enter into
a treaty in which it too magnanimously submits to unequal terms,
that is, to having the worst of the bargain, could we wonder that
the shrewd statesmen of France cheerfully accepted the proffered
terms, and closed with our extremely facile overtures? But indeed
Her negotia- they do not. They hesitate, if they do not higgle, in order to
tors are keen.
secure something better towards their side. Already France
enjoys, independently of treaties, free admission into the British
market. That is not enough. We must engage for ten years of
this liberality, provided we get in return an opening (not very con-
siderable, nor likely to be very long-lived) into markets of which
she is to resolutely retain practical monopoly. Anybody acquainted
with trade knows how highly must be estimated the advantage.
which a manufacturer has who can choose either the French or the
British market, whichever at a given time happens to be the dearer.
Wherever there is the profit-cream to be skimmed, he gets it.
Under the treaty, Frenchmen may supply either their own market
or foreign markets or ours. Britons must be content with only
their own, or some foreign market where they may be able to find
customers. Economists issue disquisitions to prove that this is
against the interest of the French people; I do not think, with
much success. They dare not allege that the French manufacturers
suffer by it. Surely we have had enough of this insular conceit, of
humiliating treaty bonds. I call all treaties such that are one-
sided in their favours. Our Gallican friends will no doubt
obtain a renewal; yet how absurd is it for Great Britain to address
France, as she is in fact doing persistently, thus-" You have
doubted whether we will carry out our policy of free-trade in face of
so many ominous disappointments. You may have been hesitating
Protection
not hurtful
to French
manufac-
turers.
tr
The French Treaty.
47
plaisance.
to erect fabriques for the supply of our markets with articles which
we ourselves make or can make and have plenty of appliances and
population to enable us to make in abundance. You fear that we
would not be ready to let our manufacturers be supplanted in their British un-
natural markets. We appreciate your feelings; they are to us no due com-
matter of surprise. But you do us too great justice. You are
welcome rivals. We will promise to keep our markets open,
and besides, to give you a supply of coal, duty free, for ten years,
which we hope will be a long enough period to induce your
industrial chiefs to form larger establishments, and, indeed, to
induce our own chiefs to erect fabriques and at least carry on a
part of their business-meantime, only a part-on French soil."
Ex uno, disce omnes. What is the character and tendency of all our
treaties and procedure? The practical application of these remarks,
so far as our negotiations and immediate action are concerned, is
that we should enter into no treaty which cannot at any moment,
on a twelvemonth's denouncing notice, be brought to an end. Discussion
Further, I suggest that henceforth all questions affecting trade proposed as
should be dealt with as in no ways belonging to the range of party
politics; that a committee, it may be composed of one person only
on each side of the question, might be appointed by this associa-
tion to argue, in written papers prepared alternately, the first in
favour of free-trade (so-called) in manufactures, to be answered by
the other, the sceptical side, and so on until the subject is fairly
presented in completeness and continuity, such as will let the
public form, on reasons and facts, sound conclusions. Strange
to say, this question has never been fully and exhaustively
argued. As to the supply of food, the nation yielded to the clearest
demonstration that protective duties of necessity raise home prices.
It could not be otherwise, for there was but a limited area to culti-
vate within the British Isles; and a far-sighted colonial, or rather
Imperial, land policy had not been formulated. I wish we could say
we are much better in that respect even yet. The case as to
manufactures was and is altogether different. We had the lead.
Our markets were the cheapest in the world. We had unlimited
sites to build factories upon, unlimited mechanical power, and an
ample population to work them by, with other important advan-
tages, such as domestic quietude, open harbours, established lines
of shipping. Whether this suggestion of a discussion be adopted
or not, we must somehow contemplate and realise what our posi-
tion is. Other nations are competing with us. Foreign markets.
are becoming closed to us. Increase of trade commensurate with
the increase of our population is improbable, at any rate it cannot
Protection
of manufac-
tures never
argued.
48
Paper on Intra-Imperial Relations.
be relied on. Whatever be thought about treaties and prospects.
of commerce, let us regard the great interest of the empire, and
surely, in any case, it has become necessary, or, to use the shrewd
statesman's adjective, expedient, to provide either employment at
home, and this we cannot do, or else to facilitate and direct
Emigration. EMIGRATION, which forms our second topic. I have no doubt that,
even although we could, by restrictive policy or any other means,
provide employment for the whole population within the British
Isles for a century to come, it would be desirable, in the interest of
mankind, and, what is more to the immediate purpose, in the
interest of the empire, to encourage the peopling by our own sub-
jects of the vast and rich agricultural lands which the colonies, on
behalf surely of the whole, by the mother country's confidence and
generosity, the empire possesses in all parts of the world. To do
so is to benefit our fellow-subjects individually, especially those
who will emigrate. But this individualism-which it is the
modern fashion overmuch to consult I would rather keep in the
background, and make a secondary consideration. In truth, we
may well regret that class and individual, as distinguished from
national, interests have been in the ascendant, have been supremely
considered in British policy for the last half century. The evil, for
such I regard it, is growing more rampant year by year. Impe-
rialism has been misunderstood. Certainly it has of late gained
no favour, because it assumed the aspect of rendering the United
Kingdom imperial (and somewhat imperious), whereas warrantable
imperialism means a predominant regard for the strength and
welfare of the empire as a whole, and the solidification and future
solidarity of the interests of the nation wherever they are occupy-
ing British territory and are thereby capable of adding to its
resources and contributing to its independence and permanence.
If the millions who have left our shores, not merely to expatriate
themselves, which they would not do in an objectionable sense if
Alienisation they went to the colonies, but, in becoming aliens, to aggrandise a
of emigrants.
power with which we desire beyond all others to be friendly, yet
which, nevertheless, we would be even more friendly with if these
our former fellow-subjects had been settled on British-American
lands, if these millions, I say, were now reckonable among the
colonial populations, how much stronger and more prosperous
would not the empire be! The past mistake-a very gross and
grievous one, let us admit and feel-will not be altogether a sub-
ject of regret, if it now be repented of and leads to instant and
earnest endeavours to be more wise and patriotic hereafter, by
imitating the United States, whose colonies become component
|
Class and
individual
interests.
Ka
|
Directing of Emigration.
49
I
of inquiry
tion sug-
states. It appears to have been an error to extinguish, as was
done some years ago, the Emigration Board of Commissioners.
submit that the Government can do nothing more patriotic, and
this association nothing more serviceable, than to get this urgent
subject considered, even though partly retracing steps. Why
should not a grand royal commission of noblemen, agriculturists, Commission
working men, and colonists, be selected by the Queen, and charged as to emigra
with the task of inquiring what is best to be done to divert the gested.
rapidly augmenting flow of emigrants towards the colonies, and
confine it within the British dominions? The advantage of re-
taining within the empire such a valuable "property " and poten-
tiality and productive power is beyond all calculation and all
conception. To take the very lowest view, supposing every full-
grown man to be worth, whether we estimate his value by the
cost of rearing, or by his probable contributions to wealth and
defence and taxation, at £500, how much better to retain him
under the British crown rather than-as unvalued surplus, ay, or
an encumbrance-not present him as a gift, but let him throw him-
self away beyond the limits of legitimate loyalty? Why applaud
men of eminence among us who are engaged in such unnational
operations ? Reaching the third stage of this paper, I remark
that the grandest EMPIRE on the face of the globe is the British.
The mother country consists of two islands geographically sepa-
rated from the continent of Europe, having ports continually open,
and endowed by nature with mineral and other wealth rich and Grandness
large beyond estimation. Our Queen rules territories of vast
extent, peopled in a great measure by hardy offshoots, in north.
and central America, in Australia, and in Africa, not to speak of
other possessions admirably placed in other parts of the globe,
forming a vast and unique aggregate that comprehends every
desirable variety of climate, and is possessed of splendid sea-coasts
and river channels. To this great empire is attached India, not so
much as a source of profit or glory, as a charge and a field for the
noblest occupation of our noblest spirits. Between the several
parts intervene navigable seas-whereon the British navy and
British shipping are supreme-in such manner that, though geo-
graphically separated from the British Isles, the colonies are united
by the best, the most frequent, and the most speedy means of
intercommunication. All this renders the empire more powerful
than if it existed in one solid block or were situated (as land-
agents say) in a ring fence. It must be confessed that the British
Islands, although they contain so numerous and so vigorous a
population, now reckoned at near 34,500,000, could not, I will not
of the
empire.
D
Value of emi-
grants.
50
Paper on Intra-Imperial Relations.
say with success, but I do say only with the certainty of a greatly
increased debt and great interruption of commercial prosperity,
cope with other first-rate powers, especially if two of them com-
bine and, if combined, own a strong fleet. Knowing that the
foremost concern of a nation is to preserve and establish its power
and independence, we gladly and with confidence point to what
lies within reach-within easy reach. Include the colonies, let
them contribute to the area from which are drawn revenues,
soldiers, and seamen for the navy, and how different becomes our
position! Look forward a little, and in God's good providence
they are as populous as the mother country, of which they are even
now the glory, the decus, though not yet tutamen in armis. The
division of our strength, which ignorance laments, will make us more
secure. Even though London, the capital of the empire, were besieged
and taken, a supposition so extreme that I may be pardoned for
making it, the enemy could not feel he had struck a vital part.
The empire's strength would remain. It should still be able to
overcome all enemies, and might emerge more powerful. We
must not regard the colonies as a reserve of power, nor even as
auxiliaries in case of war, but as component parts of the great
empire, which is the common inheritance that belongs to them as
much as to us. At present, though they are honourably loyal and
ardent, their loyalty and ardour are not turned to account; nay,
they were latterly, by a few public men-never by our people
-made light of. No preparations have been made to call such
an inestimable advantage into action in case of need, still less to
combine, in that unity which is required for strength and effect,
the forces which the colonies are able to raise with those raised
in the United Kingdom. No doubt, if the time necessary to
organise would be allowed us, admirable contributions would be
called forth. Certain powers with whom we might come into
Backward- conflict, and all the more because we are neglectful, have already
soldiers counted by the million. We cannot begin this, the
great work of imperial reconstruction, too soon.
The phantom
character of our empire, at present consisting of splendid stones all
ready to be built into the grand edifice, but not yet built, must no
longer be the reproach to nineteenth century statesmanship. We
must look beyond our isles, beyond the proximate hour. Facts
must be recognised. The claims of the colonies must be admitted.
They must no longer appear to be outsiders-no longer be
treated as if they were. They must not again be told that they
may leave the British connection; on the contrary, they must be
assured that the mother country esteems them, is proud of them,
ness of
statesmen.
A Nation's
first concern.
What the
British Em-
pire might
become.
-
The Present Time opportune.
have not yet
rights.
empire
hardly
possible.
will do them justice, will allow them their fair share, proportionate
to number, in the maintenance and government of the empire and
in the direction of its policy. At present colonists have not the colonists
full rights of British subjects. They are at this moment exposed their full
to the danger of war, yet have not the slightest voice in determin-
ing the course that shall keep them from that dreadful calamity,
nor the armaments which would render a war-if it should arise
-short and the means of establishing peace with honour and
advantage. It would be well if we could make all the Queen's
subjects conscious that they derive positive benefit from the con-
nection, and do not suffer, as, for instance, I apprehend they do by
the copyright monopoly, a monopoly which appears to neutralise
the statesmanlike policy of sending the healthy throb of vivifying
influence from the nation's heart in the largest possible measure
to its remotest extremities. In order to this some politicians have,
though not seriously, proposed intra-imperial free-trade. At A customs-
present and for a long time this imagination must be kept in the mion for the
background or dismissed. To say much about it might create
prejudice as well as unwarrantable and unrealisable expectations.
We can at once do much, however, by a proper system of emigra-
tion and opening out to rich and poor Britons the colonial
unoccupied lands. Negotiations with the colonies, in which
attention to this subject would certainly be prominent, should be
entered upon at once. Every hour will increase whatever
difficulty is now found or feared. No insurmountable, no serious.
obstacle exists. At present there is harmony throughout the
Queen's dominions. We are in the enjoyment of peace abroad,
as well as within the empire. The mother country is powerful
and prosperous. The throne is much more than respected. The
Queen is beloved. Almost everything, everything but the short-
sightedness of statesmen, their desire to avoid whatever may
embarrass them, their subjecting imperial to party interests,
favours union and facilitates it. But new circumstances may Opportune-
arise; troublesome questions may emerge; prejudices may grow necessity.
up which would render hardly possible what it is now com-
paratively easy to compass. There are the noblest motives to
impel us. The world cannot afford that the British Empire should
be disintegrated. Yet this it might be, for the status quo, the
present miserable nondescript, fast and loose relations, cannot be
permanent. Separation-which the people would deplore-is in-
evitable if there be not union. If the present generation fails, as
the last has done, through the indolence, the self-complacency, the
insouciance of our leaders, to rise to its responsibilities—fails to
•
ness and
5I
Paper on Intra-Imperial Relations.
other em-
pires by
occupy the position to which Providence points,—the next may
bitterly regret and hopelessly reproach; but there will be no
room for retracing of steps, no opportunity to rectify and recover
what has been irretrievably thrown away or let slip. There are
Solidarity of different ways in which the solidarity of the empire might be
achieved. We have before us such bright examples as Switzer-
federation. land, Germany, the United States of America. There are
varieties of form, yet but one underlying principle, that of equal
and just representative power and responsibility. The represen-
tation might be in a new supreme body, not identical with, but
such as the British Parliament, or in a new supreme council such
as the British Cabinet. There is conceivable, of course, another
form, representation in the mother country's present Parliament.
This is the system of Spain, and more or less of France. But it
would not work. Parliament has already too much to do, too
British Par- many demands on its time to face; besides, the representatives
liament can- from the colonies would feel themselves, and would be viewed by
not receive
colonial
members.
Supreme
Imperial
Council
proposed.
52
their fellow-members and the people, as meddlers in home
businesses which do not lie within their sphere, and with which
they are not qualified to deal. They would feel their position un-
comfortable and irksome. Still further, already the number of
members in the British House of Commons is by many regarded as—
nay, by general consent declared to be-too large. This very circum-
stance, however-I mean the necessity that is so obvious for under-
taking something of the nature of re-adjustment-may be welcomed
as really conducive to the establishment of a better system of
representation. If we must make a change anywise, let us do it
rightly. I respectfully suggest that such a system as would be,
on the whole, best, lies ready to our hand, and involves no very
serious and a scarcely perceptible change in the position of the
various Parliaments and Cabinets of the empire. I present my
views in the form of a question. Why not institute a council,
call it imperial or supreme, which shall have committed to it
exclusive and entire control of all matters that are purely
imperial, eliminating these from the cognisance of the British
Parliament, which would thereby have more time at its dis-
posal for the increasing and vastly important business of the
United Kingdom? Indirectly the British Parliament would be
able to exercise hardly less power than it does at present
in regard to the matters that will be eliminated. I believe
that a supreme representative council would, in the particular
circumstances, not only be much more easily established, but
would work better; that is, would do its work with less friction
S
Constitution of a Supreme Imperial Council. 53
of the new
and disturbance, and with more unity and efficiency and
persistence and weight, than a supreme Parliament. To this
council the mother country and the several groups of colonies Constitution
should be allowed to send representatives, chosen by each portion council.
of the empire, on whatever principle, and for whatever period of
service they severally think fit. I would make the entire number
bear a proportion, compared with the population of the empire,
that would give for the United Kingdom a share of representation
corresponding to the number of persons who collectively form the
British Cabinet. Assume that this number is fourteen, they
would add to their provincial functions an imperial one, for which
they would sit either personally or by substitutes elected by them-
selves as a body, or by the direct vote of the British Parliament.
Canada might be entitled to a representation of four, Australia
two or three, Africa one, other parts of the empire two, making a
total of twenty-four or twenty-five, which would gradually be
increased in proportion as the colonies and the mother country
shall increase in population. India, provided she could be satis- India.
fied with an amount of representation much short of that which,
reckoned by mere numbers, would be her allotment, might be
included and contribute six or seven, making a total of about
thirty in all. This supreme council might be entitled to conduct
a part of its business by a committee formed of its own members,
and should meet at least once a month during the whole twelve
months of the year. Ability to meet at very short notice, and,
when it is required, to hold sessions in secret, gives great superi-
ority to the principle of governing by council rather than by a
Parliament. Indeed, even if a supreme Parliament were to be
interposed, the actual government of the empire must needs be
through a committee or cabinet, which is just another name for our
council. That the system would work well there is little room to
doubt. There would be no interference with the functions that
properly belong to those who now rule in each of the several dis-
tinct portions of the empire. I will not call them states, because Contribu-
that would imply independence, but provinces or dominions. For general
instance, the British Parliament would be free to pay its quota and defence.
towards the general expenses of the empire by direct or indirect
taxation, according to its own pleasure. It would be entitled to
take its own means for procuring soldiers and sailors, either by
conscription or bounty. The functions of the supreme council
would be, at any rate until the central government became, in the
opinion of the people, entitled, in the interest of the nation, to
be entrusted with more authority confined to the business for
tions to
government
54
Paper on Intra-Imperial Relations.
which alone it exists, viz., what is imperial--business such as
the management of foreign relations, the making of treaties with
foreign powers, the fixing the nature and extent of defences
wanted for the protection and strength of the empire as a whole
and of its several provinces and constituent parts. Like the
representation, the contributions of money and men would be,
speaking roundly, in a diminishing ratio proportionate to popu-
lation. So far as I can judge, we must not lay any stress
on the advantage that might ultimately be attained by insti-
Advantage tuting a great intra-imperial Zollverein. On a superficial view,
Parliament. some of our home politicians might apprehend that the British
Parliament would sink by such an imperial organisation into
insignificance. The answer to this is, to do its work well is the
highest honour, and it would undoubtedly do its work better
than at present. It would, however, still, according to the propor-
tions which I have indicated, contribute fourteen out of twenty-
five, or, including India, out of thirty or thirty-two members of
council. The talent and patriotism of the United Kingdom,
associated as it would be with the first minds and best hearts of
the whole empire, would have a wider, I might almost call it a
sublime, scope for world-benefiting activity; and, as the colonies
or provinces would be entitled to nominate as their representa-
tives British subjects belonging to any part of the empire, often
conspicuous and eminent Britons would be selected. Thus, even
though the mother country were to relinquish the predominance
of numbers which her numerical strength and great resources
would entitle her to claim, she would still in practice have full
power; in fact she would lead. As to the colonies, if ambition is
commendable—and rightly regulated, though with another name,
it is so in the highest degree-their great men, who now want an
adequate sphere for the development and the exercise of their
energy and aspirations, would, after training in the colonies, con-
tribute to the grandest council that ever existed on the earth's
surface, probably the most valuable and healthful and beneficent
With
constituent elements. One thought more in conclusion.
all charitableness of judgment, and the strongest desire to think
well of other nations, two considerations of the utmost weight and
stimulating force claim earnest attention. These are, the empire's
need to be independent and strong, seeing we have no warmly
attached allies, no friendly States on whom we can depend as
having a common interest and aim in those causes and objects
which the British people cherish and espouse pre-eminently. We
shall as a nation continue our pacific and amicable policy, but it
A noble
ambition.
M
An Article in the "Times."
55
influence.
will be pursued with all the more success in proportion as friendly
relations are not needed by us, but, on the contrary, as desire is felt
by other States to cultivate and reciprocate friendliness. For too
long, let me add, even high statesmanship has been an affair of Increased
party. Shortsightedness, attention to immediate interests and
disregard of the remote, could not but prevail. We must rise to
an elevated level. The choice for the nation lies between consoli-
dation with greater influence, on the one hand, or disintegration,
along with feebleness, yet with old traditions fostering a dangerous
pride, threatens a fall, on the other. Speremus meliora.
Many will read with pain an article in the Times of 6th January
on the empire. It contains much truth-truth either stated or
implied in the preceding paper. I make the following remarks :-
It is said
of the
:
1. The colonies cause the mother country danger and expense. A right view
No doubt therefore we desire a constitutional connection such as colonies.
will equalise these. The colonists do not object to bear their fair
share of both.
2. Too much of the precious time of Parliament is engrossed
with subjects arising from India and the colonies. No doubt:
therefore let us hail the council for the empire, which will give us
desired relief, and at same time lead to improved administration
thereof.
3. Whereas the United States are geographically compact, the
British dominions are scattered over the globe. No doubt: for
some purposes this is what, if Heaven gave us the choice, we
might not prefer. But for other purposes, it is a decided
and great advantage, and it is an existing fact which should
content us.
4. Some colonies protect their trade. Well, it is not fatal to
us. We voluntarily invested them with the power to do so (and
gratuitously with splendid unoccupied lands). They would not
be displeased to have an imperial customs-union, and would be
ready to receive any overtures to that end.
56
Can be
amended.
IV.
IMPROVEMENTS IN THE WORKING OF THE
PARLIAMENTARY MACHINE.
A Paper prepared for the Social Science Congress, 1880.
THE working of the Parliamentary machine is clumsy in the
extreme. The machine itself is, for most purposes for which it is
applicable, perfectly satisfactory. We have heard lately much
Unsatisfac- about obstruction. We are continually saddened by disappoint-
passing bills. ments every session experienced; members work hard and spend
tory mode of
a great deal of time on the preparing and passing from one stage
to another of important and useful Bills, which, like the stone of
Sisyphus, when almost at the top, where success would reward
labour, must return to the ground at the bottom of the hill, to be
again as laboriously rolled up. But we do not know how many
reforms and advantages we miss through the discouragement these
fruitless labours, these hopeless undertakings infuse, nor the in-
structive and effective discussions which are not initiated, simply
because there is not time for them, in consequence of the weary
hours wasted on the other business. An easy remedy that has
often been suggested remains to be carried out; Bills should be
allowed to stand in either House on the next session at the stage
to which they had advanced on the session when they were first
introduced. This would be practically an immense addition to
the time of the House. It would equalise in availableness the
different months of the session, and greatly suit the House of
Lords, whose constitutional functions and power of work are in
abeyance in the early part of every session. It would also prevent
at the end of every session excessive pressure and much hasty
legislation. Another effect I for one estimate highly, it would
give more time for bills being sent by members to constituencies.
for consideration there,—an advantage to all parties, and, though
that is a small matter, a comfort to members, who naturally wish
to carry out the wishes and avail themselves of the knowledge of
the experienced parties and interests whom they represent, and
whom at present they seldom are able to sufficiently consult. If
this system of passing Bills were in practice, Parliament would
have more time for local bills. But the day is evidently approach-
ing when the provinces will be charged with the responsibility of
settling many local matters without an appeal to Parliament, or
at any rate without protracted and expensive and unsatisfactory
Work to be done in the Provinces.
57
inquiries, leading to regrettable decisions, there. I also suggest
that some person ranking equal to a judge should be appointed
before Bills receive the royal assent, to revise them, and so to
insure they are "workable."
be done in
vinces ;
I may be excused for saying in connection with the question
how far it is desirable to leave the sanctioning of local under-
takings to local bodies, that the opening out of county government Much may
will of itself remove some of the apprehensions that may justly the pro-
be entertained. But more is required; at any rate it would be
comfortable to have some control, and not allow a minority, per-
haps a very small one, at any particular meeting, even after due
notices have been published, to sanction heavy expenditure or
exercise, as they might, a somewhat tyrannical power. I suggest
that reference to, and supervision by, the Home Office, or any
board in London, would be by no means satisfactory as a pre-
ventive. I would have no control by any outside body; the
control which I desiderate, and which probably would suffice, lies
in the direction of written, or at any rate formal and personal
approval by a majority of qualified persons. More and more we
find that increase of numbers, enlargement of constituencies,
lessens rather than increases safety and control. If a man's vote
be counted per capita, and not with any regard to the amount of
interest he possesses and the influence he rightly or wrongly con-
ceives he is entitled to, he becomes discouraged, and begins to but better
absent himself. The consequence is, when he does attend, he wanted
speaks with less knowledge and less weight. This he feels and
sees, the result being that he still further shirks his responsibilities,
and the public loses the advantage which he, beyond others, would,
by taking part in deliberations, lend to many a deserving cause,
and popular government itself becomes discredited, which all of us
must regard as a great evil.
procedure
there.
position of
House.
If the proposition which it is the main object of this paper Improved
to introduce for discussion were adopted by the Legislature, not Upper
only would a considerable amount of friction and resentment
be removed from the proceedings of the House of Lords, which
the present system of working by the session instead of continuously
engenders, as I think, mischievously; but the House of Lords
would be in a position to re-occupy the ground which it has lost in
public favour. I by no means think the House, as at present
constituted, however well it is capable of discharging its functions,
can permanently retain that hold on public confidence, and regain
that place in public favour, which it formerly claimed and enjoyed,
and which it is all the more desirable to restore, now that the demo-
58
Paper on Parliamentary Machine.
cratic principle is, Parliament after Parliament, gaining greater
ascendency. It is most anomalous that so large a number of Peers
continually withhold attendance in their places. It is dangerous
and unseemly to trust so much power to the very small number
who do attend. Individually the Peers are not what popular
imagination assumes them to be. A large proportion of peerages
are what in the language of the day are called new, not men of old
family, and individually not possessed of a larger number of acres
and a greater stake in the permanent interests of the country than a
much larger number of persons who are commoners and so are
excluded from the Upper House. I have long thought and advo-
cated that the elective principle should be applied to the Upper
House in this form-Every county, according to its population,
should send thereto one, two, three, or four nobles, appointing
them for life or, if this should be thought better, during pleasure.
The electors in the county might be the electors who now vote for
members of the House of Commons; but I would prefer that
the franchise were given only to those whose qualification is based
on real property, and the reform would be more acceptable if the
electors were those only who are rated on £20, £50, or £100 annual
They should values. An admirable effect of introducing the elective principle
would be the stimulus it would give. Peers would endeavour
to unite with the people and to be in accord with them, and,
when elected, to show their appreciation of future as well as
past favours by meritorious attendance at their posts. Only those
would present themselves as candidates or be elected who are
prepared to do their great work faithfully and earnestly.
be elected.
There is no longer the danger of undue influence from the
upper regions of society which led to Peers being made ineligible
for the Lower House. What is more preposterous than the
The Scotch exclusion of our Scotch Peers from Parliamentary service there?
Peers's ex-
clusion from Why should not the people have the right to employ and enjoy
Parliament. in the House of Commons whatever services their districts, or
Peers in
Upper
House
should
represent
counties.
all districts, present? What an advantage would it be to
maintain at, or elevate the House of Commons to, the highest
social level, by increasing the number of persons of rank whom
it already so beneficially contains? Who are the most valuable
members of the Upper House? Is it not they who have been
trained in the Lower ? I go so far as to suggest that every
Peer should be eligible for either House; and I would scarcely,
if any one were elected to the Commons, require him to choose
which of the Houses he would prefer to sit in. He might sit
in both if his constituents so will it. Let me as a last word
The House of Lords.
59
both Houses.
remark that a radical, though little noticed, fault of the present
constitution of the House of Lords is absence of all local or
provincial distribution as to seats in it. The giving counties Elevation of
elective representation at once and completely rectifies the wrong
that is at present done, regulates what at present is altogether a
monstrosity, and at same time it sets governments free to indulge a
passion and a weakness that, under the present constitution of the
House, is rapidly deteriorating its social superiority and under-
mining its just and desirable influence-I mean the passion for
conferring hereditary peerages on men, not because more Peers
are wanted, or the men favoured and their heirs will mend the
average, but for party purposes, often as a recompence for paltry
services not to the State but to statesmen, and sometimes for
the low purpose of consoling for disappointments. Make the
House elective (always allowing members of the Royal family
to be called without that procedure), and the greater the number
of persons made eligible the better. By this means, too, a very
wholesome distribution of honours-by which I mean investing
with responsibility and duty-will follow.
cate's pro-
P.S., Dec.-To the foregoing may be added the following:-
There is no reason why for such an elective House of Lords all
Scottish Peers should not be eligible. The one-sidedness of the
manner in which they are elected at present is more and more
complained of. The Lord Advocate's weighty and patriotic paper Lord Advo-
on "Home Rule for Scotland" has observations on this part of positions.
the subject which will deservedly command earnest attention.
Eligibility for Irish counties may be claimed by all names on
the Irish Peerage. That Peerage, however, contains two dis-
tinct sorts, one of these being proprietors of Irish soil, and
therefore gentlemen truly connected with Ireland. Of the
other sort are gentlemen who inherit titles in the Irish Peerage
conferred without the original recipients having any connection
with the Emerald Isle. As to such Irish Peers as do not at
the time hold a considerable acreage of land in Ireland, it would
not be unfair that these should be ineligible.
Although Scotland is not very ill represented in the Peerage, if
the estimation might be made legitimately on the basis of numbers
without regard to residence and leanings, yet to anybody who
reflects it must be obvious that practically she is not well served
as a nation; and still more, that over the different portions of the
ancient kingdom the distribution of such service as she gets is
extremely unequal.
Parliamentary Papers.
"Grand Committees" have been sometimes proposed. Το
these there may be two formidable objections:-
Objections
to grand
1. Take the case of members whose experience and energies
committees. lie within the scope of more than one of these committees. It
would be painful to them, and hurtful to the nation, to confine
such persons to one.
2. Members of the Government would too often, if it were
allowed, serve on more than one committee, and thereby be
invested with undue vote-power.
60
PARLIAMENTARY PAPERS.1
It is wonderful that the Government, which has been so well
served for many years in the department chiefly concerned with
Parliamentary Returns, has not hitherto made any earnest and
Government business-like attempt to advertise and circulate, and so to utilise,
it does not the vast treasures of information obtained at great cost of labour
has facilities
turn to
account.
and money, and capable of serving the best of purposes if widely
diffused in the several quarters where they would be appreciated
and tell. There are the Gazettes, and other publications, those of
the Patent Office for instance, in which Parliamentary Returns and
Blue-Books, et hoc genus omne, could be advertised at literally no
calculable cost. There is the Post-Office, able to carry them to all
parts of the United Kingdom. There are thousands of public
libraries and public institutions and offices which would receive
them with gratitude, put them within reach of multitudes, and
preserve them for reference in future years.
1 A continuation of the original paper.
61
V.
VALUE OF HOME-TRADE AND MANUFACTURES.
(From Copyright and Patents for Inventions, Vol. I.)
diffused by
I HAVE never seen a tabular statement showing the amount
of home employment and pecuniary advantage which a working
man with a family, by his residing in this country affords. To
begin with, he pays rent. That rent enriches his landlord, who
has thereby more income to spend. It may be said, No, some-
body else would occupy the cottage. Be it so; then a new Benefits
cottage is wanted, which excavators, masons, joiners, slaters, employment.
plasterers, plumbers, painters, glaziers, ironmongers, etc., will find
employment in building and making habitable. To return. He
and his household must be fed. This will carry most of his
wages to baker, butcher, grocer, milkman, green-grocer, etc. They
must be clothed and shod. This will carry so much more to
draper, tailor, capmaker, shoemaker, hosier, etc. The school-
master, doctor, coal-merchant, chandler, and others, not excluding
the newsboy and the goodie-vendor, will in their turn have
shares of the patronage or custom. We need not go further in
specifying the several receivers into which the enrichment is dis-
tributed.
C
But we are still only at the beginning of our reckoning.
All of these participants, without exception, for themselves and
their families, spend this money they draw from him in the same
manner as he does. They-every one-are by their residence
diffusers or channels as well as receivers. It is true that not the
whole of the money the grocer is paid stays in this country.
Some of the articles he sells are imported from abroad. Tea for
instance. Well, it not only yields him and the wholesale grocer
and the bagman, as well as the merchant and broker, profit, com-
mission, or salary, but also, before it reaches the grocery, British
shipowners, sailors, warehousemen, porters, carters, etc., have been
earning a part of their livelihood; and further, besides local
imposts, the nation has levied duty for the benefit of the public
exchequer. As to the sugar, it has employed the refiner and the
multitude of men and tradesmen who are required for the opera-
tions of the sugarhouse. And to go further back, some colonist,
we may hope, has produced the saccharine: and through the same
number of hands it must have passed as the tea does. As for
the soap and candles, some portion of the raw materials may be
foreign, but they are manufactured here, and so with the woollens,
Value of Home Employment to the State.
cottons, linens, etc., they are at least in a great measure British,
both in their raw material and in their fabrication. The stones,
slates, glass, and ironwork, like the furniture, of the house he
occupies, are entirely British.
trious man
to his
welfare.
But, to proceed further, our exemplar working man must be
employed. He may be, according to the supposition on . . .,
a shoemaker, and in that capacity he or his master will have
custom to give for the operations of his business. The leather
Every indus- comes from a British leather-dealer, who, in his turn, had it from
contributes a tanner and currier, who bought the hide from a butcher, who
neighbour's bought the ox from a grazier, who paid rent to a landowner, who
bought manure from a manufacturer, who, with all the others
likewise, has been giving employment and profits. The tacks, the
binding, etc., of the boots and shoes that Crispin makes, give rise
to a similar series of employments and earnings. His industrious
habits and the increase of his family contribute to the prosperity
of the place where he resides, and of the country as a whole, as
long as he lives among us. If the fashion were to prevail gene-
rally of buying boots and shoes of Parisian manufacture, he must
look out for other employment or else emigrate. Other employ-
ment he cannot get without displacing somebody, who, in that
case, will be the emigrant. Of course, when he leaves his native
land, he may use and consume a fractional amount of British
manufactures, but it will be a very minute and a decreasing
fraction, and as to the various professional gentlemen and trades-
men whom he encouraged, they cease entirely to receive benefits,
and even his house becomes tenantless, unless indeed some new
trade giving employment is attracted, which is a supposition rather
too sanguine; but, even so, it only proves the point we are illus-
trating, viz., that employment is highly desirable.
1
62
1 Loyal Britons will not grudge the Colonies the benefit of large emigration
to those parts of the empire so steadily rising in importance, although there is
sadly too great reason to exclaim against the tardiness and blindness of our
statesmen in respect to the grand question of making the empire one. Every
session that is suffered to pass without the problem of unity being solved is an
incalculable loss-to the world perhaps-and replete with increasing danger.
Unfortunately, far too few of the emigrants go to the Colonies, partly, no doubt,
because the empire is not yet federated. The official people of the United States
have published what some persons may think unduly high estimates of the
value of an emigrant, apart from the capital he brings to the republic. But
further consideration would probably not only remove these doubts, but con-
vince that these estimates are too low. Will any of our own countrymen,
whether on the basis of cost of rearing, or on that of productive power, or on
that of a money-circulating, tradesmen-employing, and tax-paying yield of bene-
fits and profits, show how much a brawny, honest man is worth to the nation?
I should not wonder, on the average, nearer £1000 than the officials' sum.
We mean an average man of the type in ordinary times. Who can tell what
in war? What at all times if he be a man of fertile brain, and a leading
spirit?
63
VERY HURTFUL EFFECT ON TRADE OF FOUR HOURS
LESS LABOUR A WEEK.
A letter in a recent Economist disparaged the alleged suffering sus-
tained by British manufacturers through legislative interference with
the hours of labour. In consequence, I have obtained information
from a millowner who is every way able to present facts and figures,
from which I find that the difference between 60 and 56 hours per
week in a factory using 5600 lbs. of wool weekly, raises the cost of
manufacture of a penny per lb., or more than seven per cent. The
reader knows what is meant by a "margin." It is not profit, but that
excess of the selling price of an article beyond the cost of the raw
material, which ought to pay for the expenses of manufacture, and
also leave a profit. If, in the present calculation, we assume the
margin, when the time is 60 hours, to be 25 per cent. gross, then after
paying the wages and other expenses, the margin is reduced by £16,
13s. 4d. a week, a reduction so considerable as to make much more
than the difference between profit and loss, for £16, 13s. 4d. a week
is £866 a year.
My informant adds :-Granted a manufactured article, price of
which is fourth-fifths represented by raw material, a duty of 10 per
cent. upon it by a country which can buy the raw material at the
same price is in reality a duty of 50 per cent. upon the fifth part of
it represented by labour and profit. Now there is no industry can
live under this disadvantage; and if it be perpetuated in a new French
Treaty, our principal industries will, before the expiry of it, have
ceased to send a pound across the channel.
artisans.
If former generations had not guarded against such practically
unequal competition, where would have been British superiority on the
fields of industry, and where the exceptionally good position of the The case of
British artisan? Must he not have sunk to the level that tallies with
lower wages, consistently with official ideas not long ago enunciated ?
Surely the masses, who have been enfranchised since free-trade was
adopted, may warrantably claim that, at the least, their case and
interest and wishes shall be so far consulted as that the candid
inquiry proposed on pp. 36 and 100 shall be conceded. It is abundantly
clear that, unless there be some adjustment, by no means synonymous
with protection, of the nature indicated on p. 36, either wages must be
lowered, or most of our trades will, until they succumb, be carried on
at a great disadvantage. See page 41.
64
Old ideas.
Training
youth to
value com-
merce.
Here follow a number of promiscuous extracts and documents, con-
taining a large amount of matter which will be found interesting and
valuable by any student of the subject who will patiently wade.
through, or even dip into, what lies by no means invitingly before
him.
I have other books on my shelves,¹ in which are marked some
passages. In particular, The State of the Nation, Edinburgh, 1730;
The Constitution and Present State of Great Britain, London, circa 1755;
Dr. Campbell's Political Survey of Great Britain, Dublin, 1775; and
The Edinburgh Review, 1819 and 1834; but I forbear adding them.
The reader may well think he has enough. They would show-
1. How even on the youth of the kingdom were sedulously
inculcated by our great-grandsires very sensible principles of commerce
and manufactures, along with the rightful place of trade, as primary
objects of national concern, partly in maxims the same
as those
extracted in preceding pages from Cary and The British Merchant : and
let it be noted, the value of trade with colonies was held in justly
high estimation, therein teaching a lesson for us.
2. How our forefathers disparaged importations of luxuries, and
regarded these as fit subjects for exceptionally heavy duties of customs,
much as is seen in several extracts I have given.
3. How confident Mr. Pitt and subsequent advocates of improved
trade relations with France were that British industrials could, except
in a few articles such as silks and lace, more than hold their own in
competing with the French.
4. How predominant in the minds of these statesmen was expec-
tation that, if free-trade with France were established, it would
chiefly be (including silk manufactures) the produce of her soil we
should receive.
5. I may add, how great and persistent and very successful have
been, at and since the time of Colbert, the nursing care and the energy
and skill directed by the French to commerce, and that both this
desire and attainment of commercial development was with a political
design, and in connection with national naval and military strength.
I am tempted to indulge here in two short extracts, the first from
Proposals for carrying on certain Public Works in the City of Edinburgh,
1752. This semi-official document, after saying, "the whole system
of our trade, husbandry, and manufactures. . began to advance with
rapid and general progression," proceeds, "It is the united force of the
whole nation which seems at length to be exerting itself. Husbandry,
manufactures, general commerce, and the increase of useful people, are
become the objects of universal attention." The other, An Address to
the Electors of Great Britain, by an Eminent Hand, Edinburgh, 1740, of
a fit Member of Parliament, says, "As he must immediately discern
that the plenty and power of this nation can only be nourished on the
bosom of trade (especially manufactures), every method should be
devised to secure the long and healthy life of our Alma Mater."
1 Except for Reports, I have not gone beyond what these supply. If I had,
how much might my presentation of the case have been strengthened!
FIRST APPENDIX
CONTAINING CONFIRMATORY EXTRACTS.
A.
EXTRACTS FROM “THE LIFE OF THE PRINCE CONSORT," VOL. V.
"The Commercial Treaty, negotiated by Mr. Cobden, between
England and France, had been signed at Paris on the 23d January,
and ratified 4th February. It had been announced that it would be
laid before Parliament on the 6th February by Mr. Gladstone, and
that he would at the same time make his financial statement."
"While all were fascinated by the clearness of exposition, the
comprehensiveness of view, and the eloquence which distinguished
this address, the scheme which it developed provoked much unfavourable
criticism.'
"}
Treaty
"The prospect for the coming year, too, was far from encouraging.
It showed a deficit of more than £9,000,000, the estimated charges
being £70,000,000 as against £60,700,000 of estimated income.
This deficiency Mr. Gladstone proposed to meet by renewing the Gladstone's
Income Tax at an increased rate-10d. in the pound on incomes French
above £150, and 7d. on incomes under that amount, and by continu- speech.
ing the existing high tea and sugar duties. The weight of these
burdens all could appreciate. They were imminent and certain. The
advantages to result from closer commercial relations with France and
the reduction of the import duties on French wine and brandy, on
which Mr. Gladstone mainly rested to persuade the country to bear
for a time the disturbance of the equilibrium between its revenue and
expenditure, were speculative, possibly remote, and in any case open
to much discussion.'
"The Treaty with France, on which it so largely rested, had
fallen out of favour with many who had at first been well disposed to
it from the moment their trust in the sincerity of the Emperor had
been shaken. Such advantages as it offered seemed too like a lure to His main
conciliate objections to the annexation of Savoy, an imputation freely arguments.
launched against it, indeed, by the French Protectionists. And even
these advantages seemed to be more than counterbalanced by those
which, under the Treaty, France had secured for herself. What she
most wanted, our coal and iron, we bound ourselves to give her for British
ten years duty free, while we were also pledged to abolish all duties pledges as
on French manufactured goods, and to reduce the duty on brandy duties.
from 15s. to 8s. 2d., and on wine from 5s. to 3s. These changes
to coal and
E
Disparity of
obligations.
!
Objections
to the
Treaty.
1
66
Mr. Macfie's paper on French Treaty.
were to take immediate effect, while, on the other hand, France
retained all her prohibitory duties on English productions unaltered
until the 1st October 1861, when she engaged, not to abolish them as
we had done, but only to reduce them to a maximum ad valorem duty
of 30 per cent., to be lowered to 25 per cent. after the lapse of three
years. On the whole, however, the manufacturers of England were
not dissatisfied with the arrangements. The Treaty was a step in the
right direction."
"The Emperor continued," in a letter to Lord Cowley, "the
approval of the Commercial Treaty must of necessity restore to their
normal state the political relations of the two countries."
B.
NOTES ON THE FRENCH TREATY, 1860.
The following remarks by Mr. Macfie were published in the
Liverpool Daily Post of 16th February 1860. Of course they were
but imperfect at the time, and could not be expected to forecast
exactly the actual working and consequences of the Treaty :-
“THE TREATY WITH FRANCE.
To the Members of the Chamber of Commerce.
"The following are among the objections a supporter of the
Government has to the treaty
"It concedes much in return for little. This is impolitic, because
irritating to the British people, and not calculated to win us the respect
of foreign nations.
"It perpetuates the inequality between our treatment of France and
her treatment of us, by confirming it and withdrawing the main
inducement to lessen it by lowering duties on importations into
France.
"It deprives the United Kingdom of the power of rectifying that
inequality from her own side by a change of duties.
'It deprives this kingdom of the power of reverting for revenue
to the Customs duties which she abolishes, whatever the future state
of the national finances. Surely no treaty ought to promise more than
that France shall be treated as the most favoured foreign nation.
On wine we reduce the duties without the power of reverting to higher
ones.
"It deprives this kingdom of the power to legislate independently
in regard to affairs that are exclusively her own concern,-how she
shall raise her revenue, and on what; whether she shall have export
duties or not; what she shall allow to be exported, and what not.
Why should we become dependent on any foreign power to say what
our Customs system is to be?
"It binds us to allow the export trade in coal without restraints,
or duties, or limits, even though we may be engaged in war with the
67
The Treaty's one-sidedness.
nation to whom it finds its way, or anticipate war with France itself;
and this in spite of the danger of our own supplies approaching
exhaustion.
"It is thoroughly one-sided. Witness:
One-sided-
ness of the
"I. The duties on the side of France are to be 30, and, by and by, Treaty.
25 per cent. ad valorem (including charges of freight, insurance, and
commission, in the valuation); whereas those on the side of the United
Kingdom are, or are to be, almost universally abolished.
II. It allows France duties of importation on coal, though it
precludes Britain from levying duties of exportation thereon, between
which kinds of duties, as legitimate revenue, in effect there is no sub-
stantial difference.
"III. It expressly reserves the present differential duties in favour
of French shipping, while it precludes any in favour of British, thus
surrendering a precautionary power contained in our laws at present.
"IV. We make a heavy surrender of duties on wine and spirits to
please France; whereas France makes a great reduction only on such
articles as, according to Lord John Russell, the nation cares little about
her taking (see correspondence), and which, at least, are important aids
to her as a manufacturing and agricultural people.
"V. We charge the costly brandies of France no more than our
own common spirits.
"VI. Provision is made for the interests of the French colonies
and North African possessions, but not a shadow of advantage to the
colonies of Britain! Their produce and manufactures do not seem
included in the reduction of duty in France; certainly not unless
imported from the United Kingdom.
“VII. 'Importation from France, whatever the place of growth or
manufacture, insures the advantages which we concede, whereas im-
portation from the United Kingdom is not enough, unless it also be
the country of production and manufacture.
"VIII. France is left at liberty to continue her present exclusive
navigation system, or adopt any other, just as may suit her will and
her interests. No option is left us. We cannot help ourselves. We
must adhere to our bond, whatever the consequences.
"IX. The advantages given to France are immediate; those which
they give us come into operation after a considerable lapse of time.
"What are to be our advantages from the treaty ?
it implies.
"It will secure a large market for coal and iron. So far as iron Pledge as to
is concerned, we may look forward to a large increase of trade; coal; what
beneficial to us, and much more beneficial to France-chiefly as a
means of attaining greater manufacturing capabilities and agricultural
advancement. So far as coal goes, the large increase of trade will be
viewed with more indifference, because it is really a transference of
capital stock which our own nation may want, as well as a transference
of munitions of war, and of means of manufacturing rivalry. It will
open up a large market for British manufactures, but under protecting
duties which will operate seriously against trade. These duties may
not prevent the trade becoming considerable; but they are so high
that we should not receive them under treaty as a boon to be met by
Our inde-
pendence
compro-
mised.
Disadvan-
tages.
Advantages
of French
rival.
Anticipations of the
an equivalent, far less by such liberal concessions as we are asked
to make.
<<
68
Granting these advantages to be real and valuable, the question
arises-What do we concede to obtain them?
"We compromise our independence, and we endanger our com-
merce and manufactures. On these points a few observations
hereafter.
"What, then, will be the general effects of the treaty ?
"It will deprive the British Parliament of the right and the power
to impose revenue duties on articles perfectly calculated to bear it.
It will prevent such legislation, consistent with free-trade principles,
as may be called for to meet special emergencies and unforeseeable
contingencies, such as war with some other maritime power. It will
give the Emperor of France a right to interfere in our internal affairs,
as it already gives him the prestige of exacting and obtaining high-
handed terms. It will expose British manufacturers and merchants to
competition, for ten years, with rivals whom it effectually favours; for,
as a matter of fact (witness the establishment of the beet-sugar trade),
protection does, in a multitude of cases, answer its end: whether that
end be legitimate, and the means to attain it expedient and fair, is
another question. By means of differential duties to foster French
shipping and foster that branch of industry it will most powerfully
-it must throw very much of our trade into the hands of the French.
By the operation of French bounties (such as in the sugar trade, at
any rate, are well known), and by exemptions from the monopoly in
the use of new processes and the heavy royalties for that use where
permitted, to which British patent laws subject our own people, manu-
factures will be stimulated on the other side of the Channel. The
new Customs charges would augment this tendency.
"It will besides, and in all cases, confer a double advantage on the
French manufacturer. He works without liability to the income-tax
of 4 per cent. which the British is to pay; and he gains the benefit of
protective prices on whatever part of his manufactured goods he sells
at home. If he sells a half at home, and he can secure even only four-
fifths of the protective rate, he pockets a 10 per cent. boon, which is
denied to our countrymen. That the French will regard this protec-
tion as a valuable privilege, there can be no doubt to any one who
knows what are the feelings that prevail within protected trades.
That its value may and will be overrated does not materially affect the
argument, which is, that belief in the value of protection, and its
nearly-guaranteed continuance for ten years, will stimulate manufactur-
ing industry among our clever neighbours, who, if outdone at the first
by the cheaper and better productions of Britain, will ere long find
out the way to improve. Perhaps we may by-and-by see the effect
of the revocation of the Edict of Nantes reversed. That unhappy
interference with the rights of man led to the settling in England and
Scotland of many skilled artisans, and the introduction among us of
new arts. This chivalrous interference with the natural course of
events may cause the expatriation to France of thousands of our noble
working population at the instigation of French manufacturers. Some
effects of the Treaty.
69
of our own masters may themselves calculate that, as on what they send
to France they have to pay 25 to 30 per cent., it may be more for
their interest to remove their establishments to that kingdom, and
supply their own country from thence. A similar transference of
ownership of ships may perhaps arise sooner than most expect.
There is apparently no benefit whatever in being a shipowner of
the United Kingdom, but much in being a shipowner of France.
Merchants and shipowners, by a law of their nature, like eagles to the Shipping.
rocks where their eyrie is to be formed, tend, though with less rapid
flight, to their best place for settling and fixing their home. It will
make France the great depôt and their ships the great carriers of
Europe. By having a bulky article like sugar, which she will have
abundantly, as heavy freight, and coals as a return freight from New-
castle on the east coast, Liverpool on the west, Cardiff on the south,
and the ports of Leith and Glasgow on the north, she will be able to
lay down produce, attracted from all parts of the earth to Marseilles,
Bordeaux, and Havre, at these various parts of this island at a mere
nominal rate of freight, and on more favourable terms, than the British
merchant can from London. It will be natural, and become usual, for Entrepot
goods to be warehoused in the French ports in preference to the
Énglish, because thereby a choice of markets will be obtained, which
is a pecuniary advantage of no mean amount. But this choice is
more than a pecuniary advantage to manufacturers-it is in their case
deeply connected with the secret of success. The true means of the
growth of manufactures is the extent of open markets, the certainty of
large and ready sales. This will be secured to the French. And just
so with regard to shipowning. Success there depends on the amplitude
of employment and return freight. The tone of British legislation has
no doubt been in this direction, independently of the treaty, but so far
it has been unconstrained, and liable to review as new circumstances
develop themselves. Under the treaty the advocacy of free-trade by
Britons will go for little, because foreigners will hold we are not free
to act on contrary opinions.
business.
CC
and
commerce.
Undoubtedly, the Emperor shows himself in this treaty the
Napoleon of peace. He takes the most effectual step possible to realise
the cherished desire of his uncle,-ships, colonies, and commerce. Ships, colo-
We may wish him success; but why concede our national inde- nies,
pendence as the condition? Why put our neck under the intolerable
yoke of a treaty which, unlike former ones, is unequal, and must be
galling, because it gives much for little, and not only secures for
Frenchmen more favour than for our own people, but prevents our
doing otherwise for ten years, whatsoever be the call or the necessity?
Would it not be better to throw all our advantage from the treaty to
the winds, and make a present during pleasure of every advantage it
is intended to bestow on the French, rather than come under such a
fetter? The great hero-patriot of our island learned from his uncle
those memorable lines, which stirred him up to manly vigour, and
secured the freedom of his country :-
'A maxim true I tell to thee:
Nothing so good as liberty.'
Imports from France classified.
Friendly re-
"Let us, then, preserve our freedom of legislation, our right to
do what we will with our own; and this we can afford to do, for
labour at present finds ample and remunerative employment, and we
do not need new markets. Whether the French Treaty would, in the
end, increase the demand for labour, is a question not easily solved.
"In the foregoing there is an intentional omission of reference to
lations with the supposed advantage of the treaty as a means of cementing our
amicable relations with France, because it is not at all obvious that
will be the permanent effect of a treaty so framed.
Yet this paper
will not close without ready acknowledgment of the excellent inten-
tentions of Mr. Cobden, its framer, and of her Majesty's Government,
who, no doubt, in a most generous spirit have acted with a confidence
more deserving of our esteem than our concurrence, that such an aim
as theirs might justify unusual liberality.
France.
AN EX-DIRECTOR OF THE CHAMBER OF COMMERCE.
i
70
C.
WHAT WE IMPORT FROM FRANCE, AND WHAT
WE EXPORT.
A few cullings from the Board of Trade tables for 1879 to show
certain facts concerning our trade with France.
The exports of British produce, which in 1875 were £223,000,000,
were last year (1879) only £191,000,000.
The exports to France thereof were in 1879 less than in 1875.
IMPORTS.
Of Works of Art we imported in 1879 altogether,
Whereof from France,
Asphalte,
Books,
And Shipped to France,
Brass, Bronze, etc.,
Butter,
Buttons,
Chemicals,
•
China,
Clocks,
Corks,
Cotton Piece Goods,
Other Cotton Manufactures,
Drugs,
Earthenware,
•
Eggs,
Embroidery,
Ornamental Feathers,
·
·
•
*
A
Cured Fish,
Artificial Flowers,
Flint-glass (whereas she out of £230,000 took
£6000),
Plate-glass (whereas she out of £133,000 took
£2000),
TOTAL FROM
ALL PARTS.
£92,000
57,000
168,000
61,000
10,379,000
567,000
889,000
280,000
543,000
346,000
757,000
1,200,000
691,000
152,000
2,295,000
48,000
1,146,000
1,271,000
471,000
174,000
162,000
FROM
FRANCE.
£48,000
14,000
55,000
33,000
29,000
2,264,000
153,000
260,000
95,000
303,000
160,000
166,000
538,000
101,000
52,000
1,391,000
15,000
308,000
325,000
440,000
21,000
58,000
.
Other Glass (whereas she out of £113,000 took
£4000),
Hair,
Hats (Straw) (whereas she out of £334,000 took
£79,000),
Hats (Felt) (out of £514,000 France took
£20,000),
Curried Hides,
Jute Yarn,
Lace (Machine),
Pillow Lace,
Leather (Boots and Shoes),
Gloves,
Leather Manufactures,
Linen Manufactures,
Liquorice,
Wrought Metal,
Musical Instruments,
Onions,
Painters' Colours,
Paper (White),
Paperhangings,
Paper (Brown),
Perfumery,
Pickles,
Pictures, etc.,
Plants,
Succades,
Refined Sugar,
Toys,
Potatoes,
Poultry and Rabbits,
Prints,
Silk Manufactures,
Ribbons,
Other Ribbons,
Silk Plush,
Other Silk Manufactures,
Alkali,
Apparel,
Bags,
Beer,
Biscuit,
Bleaching Materials,
Exports to France classified.
•
Brass Manufactures,
Candles,
Caoutchouc,
Cheese, .
¡
•
Chemicals,
Clay Manufactures,
Clocks, .
•
•
·
Vegetables,
Woollen Yarns (Weaving),
Woollen Manufactures,
Other Wool Manufactures,
Manufactured Goods unenumerated,
·
•
•
·
•
•
•
·
•
EXPORTS.
•
TOTAL FROM
ALL PARTS.
نه
£787,000
55,000
48,000
102,000
792,000
75,000
322,000
69,000
479,000
1,286,000
261,000
199,000
57,000
100,000
564,000
450,000
748,000
445,000
55,000
370,000
126,000
110,000
366,000
137,000
2,696,000
432,000
55,000
7,000,549
1,992,000
69,000
2,866,000
108,000
4,134,000
449,000
338,000
1,233,000
3,015,000
2,621,000
5,018,000
TOTAL TO
ALL PARTS.
135,000
761,000
55,000
(About two-thirds of what the Channel Islands took.)
£2,010,000
3,208,000
1,437,000
1,075,000
485,000
310,000
308,000
....
175,000
155,000
7I
FROM
FRANCE.
154,000
16,000
36,000
78,000
347,000
75,000
317,000
7,000
275,000
1,001,000
144,000
65,000
10,000
28,000
165,000
78,000
69,000
35,000
44,000
94,000
27,000
50,000
198,000
22,000
502,000
126,000
23,000
5,532,000
1,727,000
68,000
34,000
1,880,000
64,000
2,258,000
$1,000
180,000
180,000
2,864,000
522,000
1,822,000
To
FRANCE.
£54,000
128,000
32,000
40,000
126,000
34,000
7,000
4,000
136,000
2,000
200,000
19,000
8,000
72
Coal,
Coke,
Fuel,
Naphtha, etc.,
Copper Sheathing,
Cordage,
Cotton Twist,
Cotton Piece Goods,
Cotton, Printed,
Mixed Piece Goods,
Cotton Lace,
Cotton Thread,
Other Cottons,
China Ware, Brown,
China Ware,
Salmon,
Anchors, etc.,
Pipes,
Cast Iron,
No Nails.
No Cod, nor Herrings, nor Pilchards, but of
unenumerated Fish,
•
•
Other than Wire, out of
Hoop Iron,
Tin Plates,
Oil (Seed),
Other Oils,
Comparative view of our
Other Machinery,
Manure,
Medicines,
Musical Instruments,
•
•
•
Furniture,
Haberdashery,
Hardwares,
Implements,
Pig Iron,
No Bar; no Angle Iron; no Railroad Iron; no Wheels.
Wire,
Iron Sheets,
Oilcloth,
Painters' Colours,
Paper,
·
Steel,
Sheet Steel,
Steel Manufactures,
No Rolled or Pipe Lead.
Leather,
No Boots and Shoes.
Linen Yarn,
Linen Piece Goods,
Linen Checks, etc.,
No Sail Cloth.
No unenumerated manufactures of linen, but-
Linen Thread,
Jute Manufactures,
No Jute Yarn.
Machinery,
Steam-Engines,
Agricultural Machinery,
•
•
·
•
•
•
TOTAL TO
ALL PARTS,
•
£6,793,000
231,000
£181,000
501,000
938,000
284,000
12,106,000
29,253,000
17,253,000
368,000
1,437,000
1,833,000
862,000
63,000
1,736,000
50,000
182,000
415,000
3,486,000
3,028,000
248,000
3,146,000
3,507,000
250,000
378,000
2,478,000
714,000
94,000
687,000
323,000
1,075,000
4,414,000
200,000
350,000
1,963,000
497,000
820,000
930,000 no galvanised.
None.
525,000
1,673,000
558,000
4,522,000
1,024,000
784,000
171,000
To
FRANCE.
£1,298,000
8,000
57,000
183,000
43,000
8,000
4487,00
31,0000
821,000
6,000
107,000
25,000
52,000
8,000
82,000
44,000
1,388,000
344,000
400,000
1,030,000
678,000
115,000
52,000
16,000
140,000
27,000
184,000
35,000
31,000
80,000
6,000
53,000
39,000
102,000
20,000
73,000
13,000
138,000
151,000
77,000
8,000
72,000
7,000
90,000
62,000
425,000
121,000
15,000
15,000
93,000
106,000
44,000
87,000
42,000
Paperhangings,
Pasteboard and Cards,
Other Paper Articles,
Perfumery,
Pickles,.
Pictures, Prints,
Plate, Silver,
Plated Goods,
Prints,
Saddlery,
Saltpetre,
·
Seeds,
Thrown Silk,
•
Silk, other,
Mixed Broad Stuffs,
Other mixed Silks,
No Ribbons.
Stationery,
Grindstones,
Woollen Manufactures,
Silk Stuffs,
Silk Manufactures-Handkerchiefs,
Silk Lace,
No Yarn except Worsted.
Worsted Yarn,
Broad Cloths,
Narrow Cloths,
Worsted Stuffs,
Mixed Worsted,
Stuffs,
No Blankets.
•
•
·
Carpets,
Shawls, Woollen,
•
exports to France.
Rugs,
Hosiery (Woollen),
Smallwares,
Alpaca Yarn,
Unenumerated Manufactures,
•
•
•
•
·
•
•
•
•
•
•
Brandy,
Unenumerated Spirits,
Perfumed Spirits,
Wine,
No Arms; no Ammunition; no Carriages; no
Cotton Hosiery; no other Hosiery; no
Lucifer Matches; no Plumbago; no Salt;
no Manufactured Tobacco; no Umbrellas.
•
•
TOTAL TO
ALL PARTS.
£146,000
30,000
206,000
1,000,000
£658,000
199,000
61,000
145,000
79,000
424,000
70,000
205,000
694,000
585,000
297,000
78,000
258,000
213,000
148,000
665,000
92,000
2,270,000
3,646,000
2,718,000
559,000
1,038,000
5,882,000
803,000
131,000
307,000
288,000
447,000
662,000
4,400,000
2,155,000
59,000
64,000
5,365,000
73
To
FRANCE.
£24,000
1,000
23,000
3,000
12,000
61,000
12,000
5,000
15,000
17,000
3,000
26,000
322,000
237,000
19,000
18,000
92,000
43,000
12,000
42,000
3,000
571,000
195,000
614,000
62,000
50,000
………………
1,392,000
99,000
9,000
24,000
79,000
48,000
212,000
590,000
2,117,000
26,000
27,000
2,472,000
NOTE.-The Daily Review, in a leading article on 15th February, adverts to
the figures in this brochure being for the most part those of 1879. The explana-
tion is-I took the latest that had been published at the time of making my
compilation. I am not aware that more recent ones materially differ. They
show a great increase of trade, not only with various other foreign and colonial
parts, but with France in particular. So far from regarding this increase with
unqualified satisfaction, I put the question-Do the figures affect my contention?
Is the tendency on the whole for or against our future prosperity? I am per-
suaded that an examination will, in the main, confirm the opinions that I have
collected. See p. 152.
74
穹
​}
French can
compete.
French com-
pete.
D.
REPORTS ON THE WORKING OF THE FRENCH
TREATY (1878).
The following are extracts from "Papers relative to French
Industry and Commerce, presented to the House of Commons,
1878." The whole Blue-book is full of suggestive information :—
RIBBON TRADE.-Statement made by Mr. William Andrews, Ribbon
Manufacturer, of Coventry, at the Foreign Office, London, January 11,
1877.-
During the last seventeen years England had admitted
all kinds of French ribbons without any duties whatever, and that the
effect on the Coventry trade had been most disastrous, it being now
reduced to one-half of what it was prior to 1860, whilst, at the same
time, the value of our imports of foreign ribbons had been consider-
ably more than doubled. It was, therefore, self-evident that the
French ribbon manufacturers could not possibly have anything to fear
from English competition; and he therefore asked, as a matter of
justice and common fairness, that the duties on all ribbons going into
France should be absolutely abolished, and the more especially as the
present duties, although small, were quite prohibitory.
ELASTIC FABRICS.-Derby Chamber of Commerce Deputation.
Subjecting them to such a high percentage of duty as to virtually
close the French market for English elastic terry webs. . . . The
English manufacturer, who is no longer able to compete in France,
maker can. in consequence of the anti-reciprocal and unjust duties levied upon
English
not compete.
English elastics.
¿
p
LINEN AND JUTE TRADES.-Memorandum by the Dundee Chamber
of Commerce.-
The Treaty of Commerce presently in force has
been of no service to the trade of this district; our trade with France
is very small, and not on the increase. The cost of a mill and spindle
and of a power-loom factory, however, is not dearer in France than in
Dundee; here the cost is roughly about £12 per spindle and £120 a
loom. It is stated on good authority that the cost would be less in
France. French machine-makers have offered to supply Scotch
spinners with spinning machinery delivered here as cheap as it could
be supplied by the makers on the spot. . . . Coal is the only item in
the cost of production which is cheaper in Scotland than in France.
... Yarns.— The French spinners have been able not only to
compete with, but to beat, the Scotch spinners in their own markets,
and this after paying for the expenses of transit, insurance, and com-
mission for selling. The export of yarns from Dundee to France
has been so utterly insignificant as not to be worth mentioning. .
Tissues.— French manufacturers compete with our own goods,
it may be mentioned that they do so most successfully with our
•
1:
Effects of Treaty on Glasgow trade.
75
labour.
export merchants in many foreign markets. . . . The Chamber begs
to state that since the Treaty of 1860 was established, the working
hours in this country have been reduced from sixty to fifty-six, Hours of
whereas in France they have remained stationary at seventy-two;
further, that wages in this country have very considerably advanced,
in some
cases nearly doubled, whereas in France they have not
advanced to the sam extent, nor are the French manufacturers sub-
ject to a Factory Act, which is very rigidly applied in this country by
the inspectors appointed by the Government for that purpose; nor are
they, on the other hand, subject to the influence of Trades' Unions.
1
GLASGOW TRADES.— The Glasgow Chamber of Commerce
and Manufactures. A material reduction of duties at the ports of
France will be necessary to enable Scotch manufacturers to carry on a
trade of any importance in the export of goods to that country.
There are a number of firms in Glasgow engaged in importing palm Palm oil.
oil and other products from Africa.. The Chamber strongly recom-
mends that the differential duty of 42 fr., as against 10 fr. only if
imported direct, should be abolished.
Fine Cotton Yarns.— . In consequence of the high duty levied Textiles.
on the importation of fine yarns into France, little or no trade has
been done by our Scotch spinners.
Gauzes, Muslins, Tarlatans.- . . . Exported largely, more or less,
to all markets, except that of France. The French compete with
us in our own markets.
•
•
compete.
Mixed Textile Fabrics.
A very limited trade has been done French can
in the export of these goods from Glasgow to France. . .
Their more than
keenest competitors in the London, Manchester, Bradford, and Glasgow
markets, clearly showing that they can produce goods, particularly
woollen dress fabrics, quite as cheaply, and more successfully, than the
manufacturers in this country. Abundant proof of this may be found
in the large yearly increase of imports of these goods from France to
Great Britain.
Sewing Threads.— .. We cannot in the face of the cheaper
labour and longer hours of work satisfactorily compete; in fact, so far
as cost of production is concerned, there is no reason why the French
manufacturer should not be able to produce more cheaply than here.
St
Printed and Dyed Goods.- . In the opinion of your Committee,
the duty on printed or dyed goods should be in France the same as
the duty charged on French printed or dyed goods on passing through
the Custom-houses of Great Britain.
Chemicals.
The gathering of kelp on the coasts of Scotland Scotch and
and Ireland affords almost the only means of sustenance to large Irish kelp.
numbers of the poorer population on these shores; wherefore, we
submit that there are even higher considerations than the maintenance
of a branch of trade to be taken into account when combating the
proposed duties.
British Mineral Oils.
Under the French International Treaty
of 23d January 1860, British mineral oils were admitted into France
on payment of 5 per cent. ad valorem duty. The Treaty was for ten
76
Effects of Treaty
years, with one year's notice on either side thereafter. In consequence
of intimation by the French Government, it expired legally on 15th
March 1873. In July 1871, however, it was violated by the applica-
tion to British oils of a duty of 37 francs per 100 kilog., no duty
Mineral oils. whatever being at the same time levied on French mineral oils. This
advance was equal to about 1s. per gallon, and stopped all importation.
The Treaty of July 1873 specifies an ad valorem duty of 5 per cent.
on British oils, together with 5 francs per 100 kilog. on crude oil, and
8 francs per 100 kilog. on refined oils, or such other duties as might
be imposed on French oils, these latter duties having been exigible on
French oils from 16th September 1871. The Treaty states that that
of January 1860 is again to be put in force, thus contemplating,
as before, merely a differential rate of 5 per cent. ad valorem duty,
or about 2.50 francs per 100 kilog. The result, however, by the
French application of the Treaty, is widely different from this.
The great distance from Scotland to the centres of population in
France, and the considerable freights which would thus have to be
paid on mineral oils imported into France, would entirely prevent that
competition from being disastrous to the French manufacturers.
Pig, Cast, and Malleable Iron.-The French Conseil Supérieur is to
examine the Customs duties in a conservative, but progressive spirit,
and is to substitute for the existing general Tariffs duties sufficiently
moderate for putting in force, but high enough to leave the French
negotiator with foreign countries a margin for advantageous concession.
The annual importation into France from all countries, and in
particular those from Scotland, have been, on the whole, decreasing,
whilst the production of pig iron in France has gradually materially
increased. . . The cost of production has been seriously and per-
manently increased, from the gradual exhaustion of the original
mineral fields on and near which the iron works were erected, necessi-
tating the working of thinner seams and bringing supplies from
greater distances, and also the importation of ore from foreign
countries; and therefore the measure of protection which the French
then stipulated for as sufficient is now quite unnecessary. If, there-
fore, the French Minister gives his advice, that "the French
negotiator with foreign countries should have a sufficient margin at
his command for advantageous concessions," that "pig iron should
form a matter of special consideration; that the import duty should,
on an average, not be higher than about equal to 10 per cent. ad
valorem, and, above all, that raw materials should be entirely free
of duty," we think we have made out a good case for demanding
the admission of pig iron into France entirely free of duty.
The duty on cast-iron pipes is practically prohibitive of their
importation into France, if of large sizes, or in any considerable
quantities. Only one important contract has been taken in this
country, and that immediately when the Treaty was made, and by way
of experiment. It resulted in serious loss. Manufacturers of iron
tubes in France have an advantage of 15 per cent. in labour.
Permit us to draw your attention to the system adopted and prevailing
in France, of the acquits-à-caution. This is a very complicated system,
Exports of
iron decreas-
ing.
Margin for
concessions.
Duty on
pipes pro-
hibitive.
Labour in
France
cheaper.
on iron and Leicester trades.
77
acquits-à-
which, to make it easily understood, we think we will not go far
wrong in representing as being a permission to work cast as well as
malleable iron under bond, without paying duty thereon. At first Abuse of
sight, this would appear as an advantage for us, but in reality it is not caution.
so; for by means of these acquits-à-caution, a French manufacturer may
use French cast or malleable iron for producing articles for exportation,
and get against it a certificate to import an equal quantity of English
iron free of duty; these certificates he sells to the trade at a few per
cent. cheaper than the actual duty. This is almost tantamount to a
drawback in favour of the French manufacturer, who, as labour is
cheaper in France than in Great Britain, thus becomes a strong com-
petitor in foreign countries.
LEICESTER TRADES.
report-
Worsted and Lambs' Wool and Merino Yarns.-A very large trade
is done here in Leicester by French spinners in competition with our
own local producers, and also against the Yorkshire spinners, who
largely supply this market.
The Leicester Chamber of Commerce
Hosiery and Fancy Hosiery.... As France possesses cheaper
labour, and raw materials at least as low priced, it is self-evident that
all duties are protective and tending to prohibition, not £500 per
annum being exported to France from Leicester in the three classes in
question; on the contrary, large purchases being made by Leicester of
French yarns, and by the customers of Leicester in London and else-
where of French hosiery. . . . Large quantities of yarn are imported
from French spinners, to be manufactured into these classes of goods.
The cost of coal forms so infinitesimal a portion of the whole Coal.
that it can scarcely enter into the calculation.
The rate of wages
generally in England is higher than in France. This we believe will
be at once admitted, for in the reports of the French Chambers to the
Government inquiries we do not find anywhere the argument that
French workmen receive higher remuneration than the English. This
silence is significant, as the matter would have been prominently put
forward had circumstances permitted it. . . . This duty proves entirely
prohibitory. .. Leicester manufacturers have as yet received no
opportunity of entering into France. . . . The true state of affairs is
well known to the French Chambers of Commerce. In the "Rapport
sur la Laine," by M. A. Balsan, we find at the commencement :-If
some of its branches yet painfully strive against their rivals, others, on
the contrary, strong through their constant ability and their old
reputation, defy all foreign competition. . . . "Bonneterie" . . . As Duties pro-
the present duty is prohibitory, we need not say more on this head. hibitory.
Whether things remain as they are, or the additional tax now proposed
be levied, it is all one to us.
Elastic Woven Tissues.
M
•
This excludes most of these goods.
The kind required cannot enter to any great extent, being
excessively taxed. . . . The result of the whole is to show that specific
duties are so oppressive that the articles required for popular use
cannot enter.
:
Demands of the French.
COTTON TRADE.-
Present
Treaty un-
unjust.
The Manchester Chamber of Commerce.
We are at a loss to understand on what grounds the French spinners
and manufacturers allege they are unable to compete with the rivalry
of our own country. . . . Coal can be obtained from certain districts,
including shipment, at prices nearly corresponding with the rate we
pay ourselves.
The weekly wages of the operatives are admittedly
lower in France than in England; and when we remember that our
mills are only permitted by law to work 56 hours to the week,
while in France it is the practice to work 66 to 72 hours, we are placed,
in this respect, at a great disadvantage for cheapness of production.
. . . A Treaty of Commerce, to be reciprocal and just, should cultivate
an interchange of the commodities which are best produced by each of
the contracting parties, but this end has not been attained in the
present Treaty. The Treaty has been unfriendly and unjust
friendly and towards certain branches of our trade. . . . The Treaty, which can
only be regarded as a partial and experimental application of free-
trade, has resulted in an increase from £9,000,000 sterling to
£27,000,000 in our exports, and from £13,000,000 to £46,000,000
in our imports, comparing the year 1860 with 1875. . . . The sales
of our production to France amount only to 58 per cent. of the value
we purchased from them. . . If we deduct from the amount we sent
to France, namely, £27,292,455, the value of raw materials, as cotton,
wool, and silk, no part of which has been grown in our country, or has
in any way found occupation for our manufacturers, representing
£10,429,005, the amount of our exports is reduced to £16,863,450.
Apply the same process to the imports from France, . . the
amount of their exports to us, £45,740,632.
The small amount
of our exports of cotton manufactured goods to France proves that it
must have suffered from an unfair and unreasonable restriction.
In 1875 nearly £10,000,000 sterling of silk goods alone. The
following interesting details are supplied from nine of the chief home-
trade firms in London and Manchester :-In reference to one firm, in
1860 it employed only two travellers to visit the French markets to
make purchases, but in 1875 the number was increased to eight, and
the amount of turnover increased to £500,000 or 12,500,000 francs in
the year.
In another instance the number of travellers increased from
three to fourteen, and the turnover increased proportionately. In a
third instance, the business increased from £20,000 sterling in the
year to £200,000. In all the other instances the growth of business
has been to a similar extent, multiplying the turnover manifold since
1860. These firms, whose headquarters are in London or Manchester,
have establishments also in the chief towns of France, possessing all
the facilities for distributing our goods in their markets, but they
complain that the restrictive operation the present tariff causes such
dealings to be of a very insignificant amount. They urge that it would
be a hardship to allow the Treaty to continue on a basis so prejudicial
to the producing classes of our own country. ・・・ We hailed the day
when the Commercial Treaty with France was established as the first
great step in that country towards the consummation of commercial
freedom. Although the Treaty of Commerce was solely due to
•
•
Coal.
French
wages lower,
and hours
longer.
Effects of
Treaty.
78
•
•
•
•
•
Earthenware, Salt, Navigation.
79
the efforts and concessions made by England, she has not derived more
benefit from it than other countries. In 1859 England's share in the
total trade of France was 224 per cent.; in 1875 it was still under 23
per cent.
A duty of 10 per cent. completely collected is really
equal to 25 per cent. protection upon the workmanship.
•
earthenware
France.
EARTHENWARE AND CHINA.-The North Staffordshire Chamber of Decline of
Commerce.-
The small quantity of ceramic goods imported into exports to
France from this country . when added to the Government duty,
they form a charge which is fast becoming virtually prohibitory.
French china imported into England free of duty is being regularly
sold at lower prices than those at which English manufacturers can
produce the same class of goods. . . . The export of English ceramics
to that country will, at no very distant period, almost, if not entirely,
cease. ... A specific duty, however small, levied on the cheapest and
commonest kinds of earthenware, would virtually be prohibitory.
•
•
Advantage
as to salt
enjoyed by
SALT TRADE.-The Salt Chamber of Commerce, Northwich.-
Runcorn is chiefly frequented by French craft, as they mostly draw
but little water. Reciprocity is not practised by the French Govern- France.
ment in this salt question. England takes a very considerable amount
of salt from the Sel Marais for her pilchard fisheries at the Cornwall
coast, and admits it duty free; whereas France will not allow us to
enter our salt at all by English bottoms into France. . . . Mr. Cobden Promise
was promised the admission of salt on easy terms to make trade Cobden.
practicable, and he gave way in the wine duties considerable points,
which were to form the equivalent for the promised admission of salt.
Seventeen years are gone, but France has not redeemed her promise.
given to Mr.
NAVIGATION QUESTIONS.-Southampton Chamber of Commerce.-
By the Treaty concluded between Great Britain and France on
the 23d July 1873, a tax, called the "Surtaxe de Pavillon," was
abolished, and goods can now be brought direct from countries of
production in British ships subject to the same Customs duties as
by French vessels. The "Surtaxe d'Entrepôt," an additional duty on Surtaxe
goods imported indirectly from the country of production-that is,
from having been purchased in some European market, or by tranship-
ment at any European port en route-is still levied. It is actually
a heavy tax imposed on British shipping by France, to which French
shipping is not subjected by Great Britain.
d'Entrepót.
Raw Wool,.
Wool Yarns,
Mohair Yarns,
•
•
1861.
Fr.
168,775,000
2,210,000
5,680,000
•
WOOLLEN AND WORSTED TRADES.-Yorkshire Chambers of Commerce.
France imported in-
•
1875.
Fr.
350,438,000
18,703,000
11,781,000
A

Anglo-French trade in woollens.
Her exports of wool yarns show still more remarkable signs of
vitality and growth. . In 1861 they were 6,563,000 fr., and in
1875, 40,169,000 fr., or an increase of 600 per cent. . . . For a given
amount of work in a given time a less outlay of capital in machinery
is necessary in France than in England. On the question of labour
he observed that not only were the weekly wages paid in France con-
siderably less than those paid for similar work in England, but that
72 hours per week were ordinarily worked in the one country against
56 in the other, and that consequently the cost of labour in France
must be very considerably less than in England. . . . To the usual
French objection that the British workman did more work in 56½
hours than the French workman in 72 hours, it may be replied that that
might be true in the case of the well-fed, highly paid English navvy
(railway labourer), whose productive power depended entirely on the
expenditure of physical force; but that in the manipulation of textile
machinery, where nimbleness of hand, quickness of eyesight, and care-
ful attention are of more consequence than the exercise of force, it is
impossible to understand how the British workman can do more than
the French; and it must be remembered that machines never tire, and
turn out as much work in the seventy-second hour as in the first.
If protection was necessary at all, it might be claimed by the British
Superiority wool manufacturer against his French rival, who possessed so many
advantages over him. . . . The imports are very small as compared
with the exports-
of French
rivals.
Vigour of
French wool-
len indus-
tries.
Hours of
labour.
80
-
Wool Tissues.
Blankets,
Carpets,
Tapestry,
Merinos,
Cloth, .
Sundry Stuffs,
Shawls,
Lace, .
Hosiery,
Small Wares,
Mixed Stuffs,
Furniture Stuffs,
Total,
.
Imports.
198,720
3,957,300
2,500
14,832,000
4,127,900
1,027,400
2,451,000
4,160,700
46,186,600
28,240
77,972,360
Exports.
3,203,137
4,886,116
264,660
60,926,180
71,916,199
83,033,052
12,095,720
16,403,221
14,114,273
16,041,259
74,200,070
648,641
357,732,528
There is but one important article of which the imports approach
within 40 per cent. of the exports, namely, mixed tissues. The
French work 27 per cent. longer than we do, and, in some cases, earn
as little or less wages for the longer time. The worsted manu-
facture of France is a trade of such vast extent, spread over so large
a part of France north of Paris, so solidly established, so wonderfully
•
Agricultural Machinery, Perfumery.
of French
Chambers of
increased, and still evidently increasing, so admirably organised, Perfection
worked with such skill, intelligence, and industry on the part of all industry.
concerned, such a minute attention to detail and an aim at perfection
in every process, as account for, and justify, its remarkable success, and
cannot but render France a formidable competitor. . . . In France the
Chambers of Commerce are under the direction of the Minister of
Agriculture and Commerce, who is their head. They meet twice
a month, or oftener if specially summoned, to reply to any question
submitted by the Government, and to occupy themselves with such
commercial matters as interest the district, and to memorialise the
Government thereon. In towns which are too small for a Chamber of
Commerce, or in large towns where the want of an additional com-
mercial organisation may be felt, a voluntary and unofficial Association French
is sometimes formed, for very similar objects, under the title of Commerce.
"Société Industrielle." The advantages which France gained
from it have surpassed the most sanguine expectations of its authors.
Two instances will suffice: the consumption of French wines in Gain of
England was a luxury of the rich in 1859, and only 695,913 gallons the treaty.
of it were entered for consumption, while 5,078,822 gallons paid duty
in 1875... France exported in 1861, for 187,999,000 fr. of wool
tissues, and in 1875, for 357,732,000 fr., against imports of 77,972,630
fr. from all quarters, while an almost entirely new trade has been
created by the export of wool yarns, which, in 1861, was only to the
amount of 6,563,000 fr., and reached, in 1875, the sum of 40,169,004
fr. ... Roubaix, whose competition is already materially interfering
in our home markets with the sale of such goods, for which we long
possessed a virtual monopoly. . . . I have obtained no information on
blankets, as none are exported to France under the 10 per cent. duty,
while a moderate quantity of French manufacture is imported.
France from
competition.
AGRICULTURAL MACHINERY.
Since 1865 there has been a
steady decline, until in the five years ending 1875, they amount to an
average of only 7780 tons, against a total export to all countries of
1,599,089 tons per annum. The competition of Continental French
countries with each other, and with us, for the trade of the world in
all its branches is daily becoming more intense-Germany, Belgium,
and even Switzerland are becoming from year to year more formidable
rivals to France. . . . French ironfounders have competed successfully
with our great Scotch and Cleveland establishments for the supply of
cast-iron pipes to Germany. . . . France is already providing Bessemer
rails for Russia and other neutral countries.
•
81
•
PERFUMERY, ETC.-Remarks offered by John Gosnell and Co., London.
Transparent soap enters the United Kingdom without paying
Customs duty, whilst the English manufacturer has to pay duty upon
the spirits of wine used in the production of this article; this is a
gross injustice. [This, I think, is rectified.]
PAPER TRADE.-Mr. Evans, as Chairman of the Association
of Paper Manufacturers of Great Britain and Ireland. . . . In France
F
82
Biscuits, Tin-plates, Plate-glass.
a duty of £1, 12s. per ton is still levied upon the export of rags,
which is equivalent to an ad valorem duty of five per cent. upon the
better qualities, and of ten per cent. or more upon the lower qualities
of rags. A still higher duty is levied upon partially manufactured
Paper trade. rags. On the other hand, the duty upon English paper imported into
France is £3, 4s. per ton, in addition to the amount of the excise duty
levied in that country. While British-made paper is thus heavily
taxed on coming into France, the importation of French paper and
paper-hangings into England is free, and has of late years amounted
in value to nearly £300,000 annually.
Peculiar
advantage.
Small
exports to
France.
Success
of French
Policy.
FANCY BISCUITS.—Peek, Frean, and Co. . . . In Brussels, with a
smaller population, the trade is three or four times the extent of that
of Paris.
TIN-PLATES.-Peat, Chattock, and Co. . . . English merchants are
actually excluded from the French market in some most important
branches of the trade, and are seriously impeded in all. . . . The law
ordains that the identical goods so passed duty-free shall be exported,
but omits to provide any machinery to inspect the factories during
the course of manufacture. It is notorious that some French firms,
who, by reason of their wealth, are able to obtain the necessary
bankers' security, instead of exporting the identical material imported
and passed through the Customs free of duty, are in the habit of
manufacturing goods of inferior quality, plates of similar thickness
made in France, and exporting them à l'équivalent against the superior
foreign material obtained free of duty.
TIN AND TOLE PLATES.-The tin-plate manufacturers of Great
Britain beg permission to submit the following facts. . . . Of the large
quantity thus exported, the proportion sent to France is comparatively
trivial. . . . By far the largest item consists of plates shipped to Havre
in transit to Switzerland. . . Whilst the Treaty of Commerce was
intended to promote trade between the two countries, it fails to do so
in this case, except to an extent quite insignificant.
PLATE GLASS.-A duty upon English glass which has proved pro-
hibitory. . . . The English manufacturers have, during the last
sixteen years, complained of the unequal and disadvantageous position
they are placed in through the levying in France of a duty upon their
glass, which, while it has produced no revenue whatever for the
French Government, has been detrimental to English interests by
effectually preventing reciprocal trade in glass with France.
France supplies free of duty a considerable proportion of all the plate-
glass used in the United Kingdom, which circumstance the English
manufacturers consider gives them a claim to the same facility and
advantage being accorded them; that is to say, by being allowed to
import their glass into France upon the same terms as French glass is
admitted into this country, namely, duty free.
•
Report on Woollen Manufacture of France.
Reports made by delegates of British Chambers of Com-
merce of their visit to France to inquire into the state of French
industry :-
hours of
Report on the Woollen Cloth Manufacture of France, by Mr. Joseph
Wrigley, Huddersfield, and Mr. Charles E. Bousfield, Leeds. . If, in
one country, machinery is worked seventy-two hours per week, and in Longer
the other fifty-six and a half hours, it is obvious that there is a great labour in
difference in the amount of capital to be invested in the machinery and France.
buildings in the two countries to produce the same amount of work
in the same time. We shall presently show that, in this respect, there
is a very considerable difference in favour of the French. .. . We
believe, also, in some other branches of labour, where determination
and energy are required, the British workman, if willing, is superior to
any other, and will do a greater amount of work in a given time.
We are obliged to say "if willing," for unfortunately in these days we
are not unaccustomed to hear of what are called "trade rules," limit-
ing the amount of work to be done by a man, or, in other words,
depriving him of the benefit of the natural advantages of strength,
health, and energy. . . . In all operations requiring nicety and
dexterity, rather than application of force, we must concede superiority Its superior-
to the French. In other words, all things considered, we estimate ity.
•
83
•
•
that labour in France costs one-fourth less than in England; or, con-
A
versely, we would say that English labour is one-third more costly than
French. As to markets, the whole of France and her colonies and
the whole of England are open to the French for their woollens, with-
out any duty whatever. In this they have an advantage over us.
point always urged as being so much in our favour is the very large
consumption of manufactured goods by our colonies. But it must be The colonies.
borne in mind that the self-government granted by Great Britain to
her colonies includes the management of their own fiscal affairs, with-
out any stipulation for preferential admission of the products of the
mother country, the result of which is, that exactly the same import
duties are levied on British as on French or any other foreign goods.
In nearly all countries which import woollens, France is a very French
keen competitor with England. In some markets she has to a con- competition
siderable extent displaced us.
displacing
In South America, for example, which us.
we have before alluded to, her manufactures have largely superseded
our own. . . . In labour they have an enormous advantage. Taking
into account the hours worked, the amount paid, and the work done,
we estimate our disadvantage at one-third. In fact, in judging of the
relative position of the industry in the two countries, so great is the
difference under this head, that all other considerations might be re-
garded as comparatively insignificant. . . As for markets, the whole Inequality
world is open equally to French and English manufacturers on the
same terms. Nowhere, not even in our own colonies and possessions,
have we the least advantage over the French, a statement which
cannot be made by France in respect of her colonies and English pro-
of area.
Luxuries.
84
Iron and Hardware Trades of France.
ductions. The total exports of woollen and worsted yarns and
manufactures were for-
Spain.
£30,743,371
28,359,512
26,758,632
23,020,719
1877,
20,943,981
On the other hand, the imports year by year increase. . . . There are
other signs of the rapid progress and marvellous prosperity of the
French woollen industry which are worthy of notice.
1873,
1874,
1875,
1876,
Report to the Associated Chambers of Commerce of the United Kingdom
on the Iron and Hardware Trades of France, by Frederick Brittain.
It had been imagined that the great reduction in duties would open
the French market to English iron and other productions, but events
soon proved that French makers only required the stimulus of a whole-
some competition to compel them to adopt improved methods of manu-
facture, and so to extend their production that they soon required no
foreign aid to enable them to supply their domestic demand. . . . It
may be worth while to inquire whether the cordial acceptance of the
principles of free-trade requires us to admit free of duty costly luxuries.
which are consumed exclusively by the wealthy, while we tax tea and
coffee, which supply us with harmless beverages of universal consump-
tion.
We
e may doubt whether, at a time when the accumulated wealth
of the upper classes has created an extravagance of which our fore-
fathers were ignorant, it is wise or just to obtain our Customs revenue
from articles which are consumed equally by rich and poor, and which
supply an antidote to the frightful bane of drunkenness. Have
we the same interest in cheapening silks, satins, kid gloves, and wine?
Wine duties. . . . When the Treaty of 1860 was negotiated, France laid great stress
upon the necessity of a reduction of the wine duties, and the English
negotiators made an immense concession, in the hope, no doubt, that
if the rich consumer of wine found his advantage in a cheapened
luxury, the poor artisan would find compensation in obtaining a market.
for his labour. The advantage to the wine drinker has been permanent;
the effect upon the workman is best indicated by the following tables
of exports and imports. . . . In the year 1875 the value of the wine,
kid-gloves, and silks imported from France was £14,553,152, whereas
the value of all British produce exported to France, excluding coal,
was £13,740,000, and including coal £15,357,000. But even these
figures fail adequately to show how unfairly the present French
Customs duties act upon English manufacturers and workmen. . . . In
Spain, symptoms of dissatisfaction have shown themselves, and it is
probable that the maintenance of the present scale of duties may, at
no distant date, serve as a pretext for reprisals.
>
•
Report by Messrs. Barbour and Jaffé to the Council of the Belfast
Chamber of Commerce.-YARNS.-1. In low numbers, up to and in-
cluding 30's lea, French spinners are in a better position than we are
in this country, which is sufficiently proved by the fact that they sell
85
Mr. Brittain's book.
, these numbers in this district, while we are never able to sell them
there. . . . We therefore urge the Chamber of Commerce, as well as
our Trade Associations, to do everything in their power to have our
manufactures admitted free of duty, France being fully able to produce
linen goods as advantageously as we are.
MR. BRITTAIN'S PRINTED LETTER TO THE ASSO-
CIATED CHAMBERS OF COMMERCE.
Mr. Brittain, who represented Sheffield interests in the in-
quiries that led to the foregoing Blue-book, made a valuable re-
port in a separate volume, published by Simpkin, Marshall, and
Co., on British Trade and Foreign Competition. Having been
favoured with a copy, I present the following extracts, for the full
force of which the volume itself must be referred to:
"In the year 1876 the Conseil Supérieur du Commerce of France
commissioned two of its members-Messrs. Raoul-Duval and Balsan—
to visit Great Britain, for the purpose of investigating the condition of
the textile industries of this country, in order that when the Treaty
negotiations between the two countries were resumed, the French
Government might be able to estimate accurately the strength and
character of British competition. . . . It appeared to some members
of the Associated Chambers of Commerce that a similar inquiry
ought to be made by British manufacturers into the condition of
French industries. The duty of representing the iron and hardware
trades devolved upon me, and I visited France. The prosperity
and happiness of the nation depend to a great extent upon the
maintenance of our commercial and industrial supremacy, and the Industrial
Chambers of Commerce cannot be more usefully employed than supremacy.
in endeavouring to discover when that supremacy is threatened, and
how it should be defended. . . I ascertained that foreign houses were
buying from France, Germany, Belgium, and other countries goods
which they formerly bought from England. . . . The returns of our
annual statement of trade showed a corresponding decline in our
own exports. This led me to believe that there had been a con- Transference
siderable displacement of trade, and that foreign countries were England.
supplying what we used to supply. Subsequent investigation has
abundantly confirmed my suspicions. . . . It is certain that many
goods which are exported from Great Britain as of domestic produce
and manufacture are really of foreign origin. The following figures Some
show . . . the exports described as of domestic produce or manufacture exported
bore in 1874 :-
of trade from
articles
KM)
From Great Britain,
France,
"?
E.
·
•
·
*
#
£239,550,000
£148,044,000
are foreign
made.
Mr. Brittain's book.
To what extent foreign merchandise helps to swell the total of
so-called home produce and m nufactures it is obviously impossible to
ascertain. There is extreme danger that while we gaze with com-
placency at the fruits of past successful toil, we may mistake the income
derived from capital for revenue resulting from commercial transac-
tions, and regard with indifference or contempt the efforts of foreign
Advantages competitors to secure a part of the trade which has enriched us.
possessed. Our start in the world, our immense merchant navy,
and our
Loss of
workmen.
86
Colonial
markets.
•
important colonies and dependencies, give us an advantage over any
of our rivals. We are like an old established house with a large
capital competing with young houses without capital; but all these
advantages may be neutralised if they conceal from our view the first
indications of industrial decay. Since 1872 the excess of imports
over exports has increased with great rapidity. . . . It seems clear
that we are spending a larger proportion of our income than formerly,
and saving relatively less.
GREAT BRITAIN—
Imports
Exports.
1867.
£275,183,000
£225,802,000
supremacy.
Naval . . . Our merchant navy is the offspring of our foreign trade, and
the loss of the one would probably entail the loss or the transfer
of the other. To our naval supremacy we owe our greatness,
and that supremacy is maintained by sailors to whom the mer-
cantile marine has been a nursery. The loss of our naval supremacy
would probably soon succeed the loss of our mercantile marine,
and our position among nations would be completely changed. . . .
It is perfectly true that the world could not dispense with the
production of Great Britain suddenly without great inconvenience, and
of course no sane man believes that our foreign trade will be lost at
one swoop; but if ever, through any cause, any large part of it were
lost, and our own manufacturing prosperity transferred to other
countries, capital would be quickly diverted, for British capitalists
would prefer safe investments in solvent, lucrative works in foreign
countries to unsafe investments in decaying concerns in England.
Working men would also follow their trades, and the large number of
British workmen now found in foreign workshops would be enormously
increased. It has been sometimes affirmed that a remedy for the
evil might be found in wholesale emigration; but it is probable that such
a remedy would aggravate the mischief. If working men emigrated in
Many settle large numbers to our colonies they would carry their handicrafts with
them, and it is probable that within a few years manufactories would
be established which would, by the aid of protective duties, compete
with those of the mother country, and we should lose a large part of
our best and most promising trade. It is to our colonies that we must
look for the future great markets for our goods. It is in fact the
health and vigour of our colonial trade which has helped to conceal
from superficial observers the very serious inroads which competition
has made into our foreign trade. . . . Our exports to the colonies rose
from £60,000,000 in 1872 to £64,000,000 in 1876, while those to
abroad.
1876.
£375,154,000
£256,776,000
On the prospects of British Commerce.
of French
from France
much labour.
foreign countries fell from £195,000,000 to £135,000,000 in the
same time. . . . The large Blue-books, etc., containing the report of Ingenuity
the Conseil Supérieur of France, show that the French negotiators tax negotiators.
their ingenuity to discover the lowest possible duty that will effectually
protect native manufacturers. If ten per cent. is sufficient for the
purpose, they are not so indiscreet as to suggest the imposition of forty
per cent. It is easy thus to conceal the deadliest protection under
the veil of free trade. .. But France has to argue with Spain,
Portugal, Italy, and the United States, and it is amusing to read the
arguments which she uses to convince them of the impropriety of closing
the door to her, while she is doing the same to other nations herself.
The relative value of our trade with France and some other
countries in Europe and with our colonies is not indicated by the
aggregate turnover. France takes from us to a comparatively small
extent manufactured articles in the production of which labour is a
principal element, and the advantage of selling to her coal, raw metals,
etc., is questionable. On the other hand, England, which allows no Britain takes
artificial obstruction to interfere with the free flow of trade, takes from goods
France in immense quantities those articles in the production of which employing
labour is largely employed, such as silks, gloves, lace, fancy goods,
besides brandy and wine, the importation of which is in some cases a
questionable advantage. . . . The United States compete with us in
our colonies upon far more equal terms than any country in Europe,
and we find that they are not slow to utilise their advantages.
Our exports to foreign countries . . . in 1877 were scarcely higher
than in 1867. . It is painful to compare our own progress during
the decade with that of foreign countries. The contrast since 1872
is most striking. . . . The exports of Belgium, Italy, and the United
States were greater in 1876 than in 1872. Notwithstanding the
repeated assertion that other countries are suffering from the same
cause that has produced the depression in England, we are alone in
losing any great part of our exports. . . While our own export Exports of
trade, of whatever it may be composed, is declining, that of many countries are
foreign nations is rapidly expanding. . . . In Alsace and Lorraine, . . .
a great part of the greatest iron-producing department of France—the
Moselle was lost, but the energy of the French soon repaired the
disaster, and the production of pig iron, and iron which had been in
1869, 2,284,000 tons, was 2,247,000 tons in 1873. .
other
increasing.
The United States. Till recently that country was an immense pur-
chaser of British manufactures, and few people expected to find her a
competitor in neutral markets, and even in Great Britain. Hitherto
American exports of manufactured articles have not been important,
but those who know the excellence of some of the productions of the
United States will recognise in her a formidable antagonist in her
infancy....
. . There is one feature in the competition of the United
States which makes it exceptionally dangerous to Great Britain. It
is directed especially against the trade with our colonies, which is
secure from attack from any other quarter.
The enormous com-
merce of England has always been the envy of foreigners, and the
exhibition of 1851, etc., which flattered the vanity of the English,
•
•
•
87
United
States.
Mr. Brittain's book.
taught solid lessons to our rivals, which they were not slow to
utilise. Since that time a practice has extensively prevailed among
foreign manufacturers of employing English workmen, and now
in a large number of manufacturing towns throughout the world,
colonies of British workmen may be found who have carried their
skill with them, and who impart it to their new confrères. Some of
the largest works in foreign countries have been founded, and success-
fully conducted, by British immigrants. Another reason for the falling
off in our trade may be found in the numerous strikes and lock-outs
which have taken place during the last few years. Strikes frequently
occur at a time when demand is increasing and when masters are
supposed to be most vulnerable. It is precisely at that moment
when both masters and men ought to make every effort to supply the
demand and keep possession of the market. A long-continued inter-
ruption may be fatal to the interests of both, because when the world
wants goods it cannot wait till English employers and their workmen.
have settled their differences. In the years 1871-73, when
English working-men could earn in four days or less as much money
as they had been accustomed to earn in six, they were content in too
many cases to work only four days. At the same time the
French, who had been taught industry by adversity, were repairing
the disasters of a great war by working twelve or fourteen hours a
day. They and other nations spared the world the inconvenience
which otherwise might have resulted from the idleness and intemper-
ance of British workmen. Foreign goods were bought in many cases
where English goods would have been preferred; but when once.
trade has been diverted it is difficult to draw it back into its old
channel, and it is to be feared that many English working-men are
now paying the penalty of their former thoughtlessness. . . . France
produces iron now for home consumption, and the hope which was
entertained by the negotiators of the treaty of 1860, that she would
furnish us with a great market for our iron, has not been realised.
It is to be feared that there was a deterioration of quality in many
articles of British manufacture in the years 1871-73. In periods of
great activity there is always a tendency to hurry work, and efficiency
is sometimes sacrificed to speed. . . . It has been frequently affirmed
that England has derived immense advantage from free-trade.
Our experience has been gained under conditions which have either
already ceased to exist or which are now passing away. . . . No
arrangement can be permanently satisfactory which inflicts great
injustice upon a large body of English manufacturers and working-
It is not by signing treaties which sanction the most baneful
kind of protection that Great Britain can best promote the interests of
free-trade. . . . It soon became apparent that under the stimulus
Scepticism as given by the treaty France would learn to hold her own. .. At
men.
Colonics of
British
workinen.
Strikes.
Effect of
high wages.
Disap-
pointed hope
as to iron.
88
•
•
•
•
•
•
•
to
and treaties. the present time, seventeen years after the conclusion of the treaty,
notwithstanding the fact that France has lost several of her most
prosperous departments, we buy from France manufactured articles
prodigiously in excess of those which we sell to her. . . . The low
wages, long hours, and the absence of restrictions as to the labour of
89
Complaints of Spain and Portugal.
favour
women and children, give, as far as the immediate economic result is
concerned, a great advantage to France. . . . In order to obtain Wine duties
concessions from France, we made the dangerous experiment of France.
entirely changing our policy with regard to the wine and spirit duties.
The arrangement favoured France in every respect.
In 1867
the Portuguese Government concluded a treaty with France with the
avowed intention of compelling the English Government to alter the
alcoholic scale. It was in vain that Lord Stanley, in his despatch of
March 18th, 1868, appealed to the fourth article of the treaty of 1842,
which was supposed to insure to Great Britain favoured-nation treat-
ment. The Portuguese Government was inflexible, and subsequently Portugal
concluded treaties with Turkey, Austria, and Germany, under which the complains.
merchandise of those countries were admitted into Portugal upon the
same terms as those of French manufacture, while those of British
origin were subjected to duties in some cases three or four times
heavier. . . On the 15th May 1872, Mr. Consul Brackenbury, in
reply to an inquiry from the British Foreign Office, wrote as fol-
lows: The Franco-Portuguese treaty of commerce has been the
death-blow to many British manufactured articles of a nature to com-
pete with French goods. I also mentioned that from this cause
British imports of cotton, woollen, and silk stuffs, and of ironmongery,
had sustained a serious falling off, and I referred to the fact that
German goods have in this market to a great extent superseded
articles of the same kind which were formerly imported almost ex-
clusively from England." . . . It was not till 1876 that British goods
were admitted at the same duties as those of the favoured nations, and
it is probable that the Portuguese Government made the concession,
rather with the view of stopping the introduction of British goods,
under a false designation, than from a sense of the deplorable injustice
to which we had been subjected. The example which was set by
Portugal in 1866 has recently been imitated by Spain, and under the
new tariff British manufacturers find their produce saddled with
duties in many cases far in excess of those paid by their competitors.
In his explanatory report upon the new Spanish tariff of July
17, 1877, Sir J. Walshaw, Bart., Her Majesty's chargé d'affaires at
Madrid, informed the British Foreign Office that the Spanish Minister Spain,
of Finance . . . proceeded in words almost identical to those which
had been used ten years before for the same purpose by the Portu-
guese Government:
"If this prove insufficient to procure for Spanish
commerce most-favoured-nation treatment, the Government should
then be empowered, not only to exclude from participation in the
benefits of the revised tariff any nation which hindered that commerce,
but also to impose upon their produce, manufactures, and ships,
differential duties." While British produce has been exposed to
these heavy differential duties, French manufacturers have been
encouraged by bounties upon exports in the form of acquits-à-
caution," and sugar refiners have been subsidised by Government
under the veil of a drawback. We discover the extent of the loss
to our manufacturing industry; . . . with a few insignificant exceptions,
there has been a serious falling off in the exports of all manufactured
resented.
M
•
•
•
•
Mr. Brittain on our French trade.
Swiss
articles within the last dozen years.
There are many symptoms
that continental nations are now entering upon a battle of tariffs.
The following passages are translated from the message of the Swiss
Federal Council to the High Federal Assembly concerning a new
customs' tariff, dated June 16, 1877: The Commission, while
Commission. maintaining the general principle of free-trade, has pronounced an
opinion that it was allowable to introduce augmentation of duties
which would protect our interests among those states which, without
having any treaty with Switzerland, impose upon her productions
duties considerably higher than those prevailing in Switzerland. . .
By premiums paid to locomotive builders, by increased duties, by
compelling railway companies to purchase in Russia their rolling
stock, and by other extreme measures, Russia is seeking to prevent
as far as possible the importation of foreign manufactures.
There is great difficulty in applying differential duties. Under
these circumstances it would be dangerous for us to abandon our
liberty by signing treaties of commerce for long terms of years,
unless we could secure much more favourable treatment than that
which is usually accorded to us. . . French manufacturers have
found a splendid market for their goods in England, and they would
be alarmed if there were any prospect of that market being lost...
The course which has been recently pursued of renewing treaties in-
definitely, with a provision that either country may withdraw upon
giving twelve months' notice, is perhaps at present the best. . .
Nothing would be more encouraging to foreign protectionists than the
public recognition and sanction by treaty of high prohibitive duties by
this country. . . . We bought from France in 1876 silk goods represent-
ing a higher value than all the manufactured articles enumerated that
France bought from us combined. . . . Many unconscious supporters
of foreign protection assure our rivals that they may with perfect im-
punity pursue their illiberal policy, and that this country will always
afford them a magnificent market, where they may dispose of their
goods free of duty; while they, in return, levy upon ours heavy
duties, which threaten to destroy or damage some of our industries.
But true free-traders will not regard with complacency an unjust
arrangement which threatens to produce a revulsion of feeling in this
country, that may throw us back for a generation. While thousands.
of English working men, who might have been fully employed but for
the protective tariffs of foreign countries, are walking about in idleness.
and subsisting upon the bounty of the charitable, we import annually
in large quantities articles of luxury which are consumed by the rich,
and upon few of which any duty whatever is levied. . . . Mons. Amé,
the Director-General of French customs, in his work on tariffs :-
"From the point of view of the adversaries of Richard Cobden, it
English were may be maintained that the English in 1860 were deceived, for while
self-duped.
they were seeking a vast market for the sale of their manufactures,
they really found in France a rich market where they might buy
goods." If there were any danger that France might lose the
English market, there would be an agitation through almost the whole
of that country, and free-trade missionaries would spring up every-
French
achieve-
ment.
What the
free-traders
will think.
90
•
•
•
•
•
•
South of Scotland Chamber of Commerce.
where. In the meantime both duty and interest call us to develop
to the utmost of our power the great colonies and dependencies
which give this country an imposing and unique position in the
world.... British India might, by deep ploughing and planting, be India.
made to produce incalculable quantities of wheat. She was of
immense service to us during the cotton famine, and her production of
tea and jute is now assuming large proportions. Australia is capable
of supplying us with unlimited quantities of wool, and her production
of cereals might be prodigiously developed. We possess colonies in
every climate, and many of them are untilled fields of marvellous
fecundity.... No export merchant of experience requires any tables
to convince him that foreign competition is to-day a formidable reality Foreign
in countries where, a few years ago, it was a myth. The ostrich no myth.
endeavours to escape danger by burying its head in the sand, but we
shall not combat foreign competition by imitating its example, or by
boasting about our wealth and greatness.
competition
91
F.
REPORT UPON THE FRENCH TARIFF ON WOOLLEN
GOODS, ADOPTED BY THE SOUTH OF SCOTLAND
CHAMBER OF COMMERCE.
In the column headed "provisional general tariff," are the duties.
which would be payable in event of the threatened discontinuance
of the treaty, without another being agreed upon. These latter duties
have also been recommended by the French Budget Commission as
the "solid basis from which the Government may negotiate good
conditions in new Treaties;" and, it is added, "the Government
will know what concessions may be made in exchange for concessions
by other countries.”1 We are thus left to understand that although
our goods would be subject to the "General Tariff" were there French
"general"
no treaty, the French Goverment is prepared to give us better terms tariff.
by negotiation. . . . Before p.oceeding to consider what position
should be taken up by the British woollen manufacturer, it may be as
well to state upon what grounds the French base the necessity of a
tariff being imposed at all. M. Malézieux, deputy and president of
the Budget Commission, in his admirably lucid and clever report,
enumerates the following advantages enjoyed by other countries,
against which France has to contend:-(1.) Cheaper transport, notably French
in England, where water-carriage is largely available. (2.) Cheaper
coal, the bread of industry, as it has been called. (3.) England's
advantage in having no military conscription. (4.) England's greater
command of capital ready to be embarked in industrial operations.
(5.) England's long political stability. (6.) The longer experience of
excuses.
1 This may be worth treating for on the understanding that we merely enjoy
something similar in return.-R. A. M.
4
Mr. Craig-Brown's Report.
England in various industries, her superiority of manufacture, and the
vastness of her productive powers, especially as regards cotton. . .
Members of the Chamber are not likely to admit that there is much
force in the alleged advantages of Britain over France, at least in the
manufacture of woollen goods. At its great central mart in London
the two nations buy the raw material at the same price; and it is a
fact that its transport to many of the largest manufacturing centres in
France is less than to some of the great centres in Britain. On the other
hand, we have to go to Havre for no inconsiderable quantity, while
all the way from Bordeaux we fetch the skins which yield vast
quantities of skin wool consumed in this country. If coal is here a
cheaper commodity, its share in the cost of making a pound of yarn or
a yard of cloth is too insignificant to be calculable; and, were it more,
does France owe this country nothing for the absolute freedom with
which she can carry the precious mineral from our hundred ports?
What Britain If we have no conscription, we have military and naval estimates
suffers from.. hardly less costly than they are in France. What France loses in
French
excuses
invalid.
labour by her vast standing army, Britain loses by the restrictions
placed on labour by successive Acts of Parliament. Her wages, more-
over, are as much higher as her hours of work are shorter. If we have
domestic tranquillity, we are more torn by strikes and such like forms
of commercial disturbance. Our asserted superiority in available
capital simply does not exist. In face of the rapid and constant
changes in machinery and in processes, long acquaintance with the
trade confers no advantage, and, if it did, the French woollen manu-
Superiority facturers would have that advantage. As for superiority of manu-
facture, he would indeed be an ignorant Englishman who would claim.
to excel the French in woollen goods. Statistics tell another tale.
They show that for the last few years French woollen exports to this
country have gone on increasing, while English woollen exports to
France have been as surely diminishing.
on
side.
92
Imports and
Exports in
French
trade.
Table showing increase of woollen manufactures imported from
France to England, and decrease of same exported from England to
France:
Imports from France,
Exports to France, .
Imports from France,
Exports to France,
Table showing increase of woollen yarns imported from France
to England, and decrease of same exported from England to France :—
•
•
1874.
£2,873,440
3,588,887
•
1878.
£3,923,667
2,801,426
1874.
£21,859
327,504
1878.
£105,643
200,719
It is plain from the gradual encroachments of French, and
the steady falling back of English woollen makers, that the former can
do more than hold their own. Their trade has no longer any need to
shelter itself behind the ancient entrenchments of protectionism. It
can afford to sally forth and wage open battle. . . . As to the rate on
woven cloth, there can be no pretence on the part of France that a
Letters on pending questions.
93
rapidly
levy of ten per cent. on English woollen fabrics is necessary for the
safety of her own manufacturers. Taking everything into consideration,
the woollen-trades in each country are as evenly matched as they well
could be. . . . It is unwise of the manufacturers in this country and French
this district to treat the question with indifference. To imagine we advancing.
are so far in advance of our neighbours that we can easily carry ten
per cent. of extra weight is one way to lose the race. They are rapidly
approaching us in everything that has hitherto contributed to our
success; in some points they already excel us; and we may wake
some morning to find that our pre-eminence is gone, and that we have
allowed ourselves to be elbowed out of our rightful place in the com-
petition.
T. CRAIG BROWN.
G.
EXTRACTS FROM LETTERS.
"9th December 1880.
"Such a letter of Mr.'s puts one in good spirits, and quite
dissipates any little despondency caused by the opposition of powerful
journals and the fatal apathy of the public. The latter amazes me
more and more every day; and I think it has become quite plain that Public
the movement must first be impelled from below.
If well-to-do apathy.
people, or rather people who were well-to-do, are content to re-utter
the old shibboleths of one-sided free-trade, we must look to the
more nearly affected working-men to carry forward the wave of
opinion, which must in the end overwhelm all this poor-spirited
inaction."
H.
From an influential English Steamship-owner.
"29th November 1880.
system not
"I am perhaps a more qualified free-trader than some of our
friends, but nevertheless I wish to see free-trade made as much of a
reality as is practically possible; and this cannot be if the bounty Bounties
system is to continue. I believe indeed that the bounty system is provided
something entirely outside of the old controversies between free against.
traders and protectionists, and that if Cobden were alive now he
would be upon the platform of those who seek the fiscal unity of the
empire, and who demand justice for our industries."
CC
7th December 1880.
"It is quite clear that everything is shaping in the direction you
wish, and that in the course of another month or two there will be as
big an outcry as any of us could desire. Unfortunately it may then
be too late to stop the French treaty, but I don't think it will, if two Public
or three earnest men like yourself can be got to go about the country opinion.
94
Letters on state of trade.
a little and take the subject up promptly. All the materials for an
explosion are ready to hand, and all that is required is to apply a
match; but with few exceptions, it is practically impossible either for
M.P.'s in general or for intending parliamentary candidates to come to
the front until they see how the cat jumps,' and experience a little
friendly pressure from their constituents. For such reasons as
these the press is, on this question, no guide to public opinion.
I know, and I speak from positive knowledge, that we have influential
sympathisers in many of the manufacturing towns. I think they only
now want 'stirring up' to start some kind of organisation, and that
matters are nearly ripe for it."
I.
From another English Correspondent.
"12th November 1880.
"The view you take of the French and other commercial treaties
is so singularly in accordance with my own and that of a very large
proportion of our producing classes, that I trust you will excuse my
pointing out that the agricultural classes are as much interested in the
question as any other department of native industry. . . . The result
is thousands of unoccupied farms, and the reduction of agricultural
capital is estimated to be equal to four rents, or, in other words, of
200 millions of previously active producing capital. This enormous
sacrifice is fast destroying the home market, and free importation is at
the same time crippling our manufacturing and commercial industry;
and, by the liberality of our statesmen, we are now paying off the
Agricultural enormous war debt of the United States. . What is called free-
trade was carried by Manchester men with the hope of reducing wages,
by lowering the price of bread. Now, I maintain an old, advanced,
and highly-taxed state has no right to expect cheap labour. Cheap
labour represents degradation of the multitude, and, for national pro-
gress, they are already far too low, in food, lodging, and raiment, etc.
The American statesmen openly say they will not degrade their people
to the level of our cheap labour, and they maintain import duties on
our goods at a rate that is rapidly paying off their enormous war debt.
Let the free-trade physic work for a few years, and you will find
the nation exhausted. It is now evident there is again great attention
paid to this question, and I have always felt it a duty to do everything
in my power to prevent this national suicide.”
view.
•
Extract from a letter from Dublin :—
The principle of free-trade I believe to be a sound and wise prin-
ciple, and has contributed in a large degree to the general prosperity
of Great Britain, and the social advancement of the working classes;
but I think it is an unfair advantage on the part of foreign Govern-
ments the granting of bounties and subsidies with the object of being
able to gain advantage of a nation that admits their produce and
The silk manufacture.
95
manufactures free of duty and all other restrictions; and I do not think
it wise or prudent for the British Government to enter into commercial
treaties that will lead to unfavourable competition with its own
subjects.
J.
"21st August 1879.
t
"I feel strongly convinced that foreign protective duties will inflict
very great injury upon our trade. . . . The state of agriculture, manu-
facture, and commerce deserves the closest attention of the nation."
K.
From a Silk Manufacturer.
"10th December 1880.
"The home consumption of raw silk has fallen off during the last
five or six years from 30,000 to 22,000 bales. The re-exports have
fallen at a much greater rate, the manufacturing countries of the Conti-
nent and the United States now importing raw silk direct instead of United
The United States last year trade.
purchasing in London as formerly.
consumed 19,000 against 12,000 the year before, and this year will
probably see a higher total than our own.”
States silk
"22d December 1880.
66
'I have been trying to procure the exact weight of raw silk worked
up and used in this country for your information, but regret that no
authentic returns are published by any one connected with the trade ;
and the Board of Trade returns are not explicit enough to be of any
use.
"I am sure you would be giving the free-traders the benefit of
the doubt, by saying that our present home consumption of home-
manufactured silks was less than 2,500,000 lbs. per annum.
average weight of the bulk of the raw silk imported is about 103 lbs.
per bale, and I calculate that only 22,000 bales are at present worked
up in this country, the balance of our imports being reshipped to the
Continent or the United States.
Raw Materials.
Articles of Food.
"What a great convenience it would be if our Board of Trade Board of
summarised their monthly returns after the French style as under-
Trade
returns.
The See page 96.
Manufactures.
Sundries.
It would do much to open the eyes of the public to the serious
dimensions of foreign competition in the production of manufactured
articles especially.
"A Zollverein of Great Britain and her colonies is now much Imperial
talked of, but without we can offer them some special advantages in Customs
the way of trading, it is difficult to see what good can be done. At
present we serve all alike, and our colonies do the same."
Union.
Fearful
decline of
silk trade.
96
Table illustrating silk trade.
Average consumption of silk in this country for ten years, before pass-
ing of the French Treaty,
lbs. 6,000,000
Average ten years after,
3,200,000
2,800,000
2,200,000¹
Retaliation.
""
""
ending 1879,
Consumption 1879,
Before the treaty we imported (manufactured goods),
Present average is, .
L.
From a Liverpool Iron Merchant.
"12th November 1880.
Foreign
and foreign
"President Garfield says in his election address, as regards trade,
'We legislate for America, not for the whole world.' At present our
men are very badly off; see the report in Daily Telegraph on the chain-
making industry, etc. etc. In iron, tin-plates, and chemicals, business
is just as bad, and these are the staple industries of England. America,
competition Russia, France, Germany, and our colonies are closing their doors
markets. against our goods; what will become of our mechanics? The whole
question wants going into; every class in England should contribute to
the national prosperity. We are losing most of our trade by
people who, for party purposes, reply, 'Free-trade cures all.' We
must have a centre to whom we can address our grievances, a Minister
of Commerce and Agriculture; that will be the first step to some
reasonable readjustment."
•
£6,000,000
13,000,000
•
M.
"13th November 1880.
"There is no doubt that retaliatory measures, or threats of such,
are the only effective means of checking the migration of the most
useful of our industries and the demoralisation of what remains, and
those who exert themselves now in that direction, when immediate
action is absolutely necessary, will merit the heartfelt thanks of
employer and employed alike."
15th November 1880.
IRON.
This is the chief of British industries and is the main cause of our
national wealth.
Belgian Beams and Girders of iron are now almost solely used in
English buildings, notably the Exchange buildings here where I am
1 Little more than a third of what was manufactured before the Treaty !—
R. A. M.
The Iron Trade.
97
writing. Large cargoes are weekly received in London and Liverpool
from Antwerp.
Belgian Rails.-The Australians actually purchased 20,000 tons of
rails from the Belgians.
It may be said, If they can supply cheaper, why not let them? But
it must be remembered that our furnaces are almost extensive enough to
supply the world. As soon, however, as American protection closed us
out, our works were comparatively at a standstill. And it costs us much a practical
more to turn out our supplies by fits and jerks than we could by a tion
constant turn out of material; hence with no export demand for our
surplus production, we have become so disorganised that they can now
beat us on our own ground.
considera-
German Steel Rails.-Baron Krupp recently booked an order for
America for 10,000 tons of steel rails.
tecting duty.
German Steel Rails and Iron have for many years been used in
America, Germany, Italy, and were also largely shipped to England.
If they could sell in their own countries and compete with others, did
they want protection ? No. Still the German Government has German pro-
recently put on a protective duty of £1 per ton about on rails. This
keeps the iron £1 higher in Germany; and this extra profit on home
consumption will easily enable them to compete in our markets. They
profitably exported before protection was put on. They can much
better do so now.
German Iron and Steel in a semi-manufactured state is largely
imported here, and when finished is branded as best English (and is
quite as good too).
Russian Imperial Telegraphs.-The contract for the entire supply
for Russia was recently executed by a German works.
German Iron Works.-So long as German companies pay per
cent. profit per annum, the Government does not allow them to be
wound up.
subsidies and
Russian Iron Works are largely supported by Government subsidies, Government
amounting in some instances to £5 per ton, in addition to a high protection in
protective duty and consequent exclusion of English metal and Russia.
prospective supply of the East from Odessa.
Small Arms Associations of Birmingham read their memorial to Small arms.
Government of their trade entirely falling off, for export and foreign
arms sold in England. And this is Birmingham, the centre of the
hardware trade, the very first town that should be in the van of the
fair-trade movement.
American Locomotives supplied extensively to New Zealand and
Australia.
We want a sagacious Minister of Commerce to inquire into all this Minister of
and see where the fault lies.
Commerce.
Ꮐ
98
Treaties
unfair,
"9th November 1880.
"The way this country has allowed itself to be treated in matters
of international commerce is much to be wondered at. After we have
been hit on one cheek, we have held up the other with a meekness
which (however admirable in other circumstances) is at all events in-
compatible with fervour in business. I wish I shared your confidence.
as to there being 'abundance of material for a conflagration provided,
ready for the spark to be applied.' No doubt there are a great many
men (more numerous and more influential than are dreamt of in the
Government's philosophy) who only want an opportunity to denounce
these one-sided, unfair, and disaster-laden Treaties; but the mass has
yet to be leavened. I am convinced it must come from below. Let
the miners and iron-workers and cotton operatives see what they suffer
from the supineness of our statesmen in this matter, and they will not
be long in making their voice heard. For myself, I go in not only for
Retaliation. freedom to retaliate, but for retaliation itself, sans phrase-retaliation
sharp and unmistakeable. Just now we have America at our feet, and
have such a pull on France and the Continent as might bring all to
their senses. Not to use the means of salvation is suicide, nothing
less."
Wine duty
negotiations.
N.
EXTRACT OF LETTERS FROM A SEAT OF SCOTTISH
INDUSTRY.
"20th November 1880.
"It needs no great insight to see how much our negotiations are
Government hampered by the absence on our side of anything to negotiate with.
scious of in- Indeed, Mr. Gladstone has practically admitted the propriety of retalia-
convenience. tion by abandoning his proposed reduction of wine-duty until he has
must be con-
the French committed to a quid pro quo.
A clear-headed statesman
who would take up this question and agitate it judiciously might
create a very strong party in the country."
Bradford
sceptical.
"23d November 1880.
"I see in the Daily News of this morning an account from the Paris
Temps of our negotiations with Spain and with France. In his with-
holding or granting of the easier duties on wine according as he obtains
bad or good terms from these countries, Mr. Gladstone admits in its
entirety the principle of reciprocity. One may as logically put new
duties on for the purpose of making good terms as refrain from
taking old duties off."
"26th November 1880.
"The Bradford Observer of Wednesday last. In it the Free Traders
of that important place appear (in the Chamber of Commerce Report)
as denouncers of the French Treaty on even its present basis-much
more the proposed basis of specific duties. It is the biggest sign yet
of influential movement in our direction."
Recent International Congress of Commerce.
(C
99
"2d December 1880.
Although a disadvantageous treaty might be agreed to between
France and this country without much IMMEDIATE outcry, it would
certainly be denounced on this side the Channel by public opinion
long before the ten years of its term could expire. . . . The short
passage from Wealth of Nations in which Adam Smith recognises Adam
the necessity of retaliatory tariffs, would shake many of the dogmatic retaliation.
doctrinaires, and prepare their minds for a candid examination of our
proposals."
Smith and
Interesting proceedings in the Bradford Chamber of Commerce
referred to in a preceding extract. From the Bradford Observer,
November 24, 1880:-
Mr. Mongre-
The sug-
mission of
“The President wished to refer to a matter in connection with striking
Mr. Mongredien's pamphlet. . . . The total French imports of manu- figures for
factures, as compared with raw materials and articles of food, was only dien.
83 per cent., and the total French exports of the natural products other
than articles of food, was only 595,000,000f. out of 3,331,000,000f.
There had been a meeting in Liverpool a few days ago on the
question, and there was a very strong opposition there to a treaty at
all, unless it was one in the direction of Free-Trade. . . . A suggestion
was made at that meeting that the Government ought to send down a
competent gentleman from the Foreign Office to take counsel with the
leading chambers of commerce in the kingdom, and to ascertain their
views on this question, and to see how the different interests of the
country were likely to be affected by it. He thought that was an ex-
cellent proposal, and he should move a resolution to that effect before gested Com-
their proceedings were over. It was impossible that a deputation of Inquiry.
two or three gentlemen going up to the Foreign Office could represent
all the views that were held on the question by the trade, and the pro-
per course to take was for the Government to send round to all the
principal industrial centres competent gentlemen to ascertain what
those views were. He had already said that the question before them
was not a party question. . . . In 1879 the consumption of wool in
England was three times greater than in 1850, but the consumption
by their competitors in 1879 was seventeen times greater than in
1850. During his stay at the Paris Exhibition he (the President)
came in contact with most of the leading manufacturers in connection
with the wool industry. He had a good many conversations with British and
them about the progress of that industry. One of them who was French woo
more frank than the others, and who was in his group of juries,
M. Legrand, told him that since 1867, the French wool industry had
doubled, and that since the Treaty of 1860 it had trebled. Take that
in contrast with the position of our own industry as he had shown it
to them by figures at the last meeting. Our export trade had fallen
off about one-half in that thirty years, whilst the French industry,
upon their own confession, had more than doubled. He had further
conversations with them in reference to the prospect of their lowering
industries.
Frank
French
avowals.
Bradford Chamber of Commerce's
<
the tariff and adopting Free-Trade with England, and, generally speak-
ing, they were very frank on that question. The tenor of their re-
plies was to this effect: We shall go on as we are as long as you will
allow us to do so, and we shall take off our duties whenever you make
the demand. Our trade with England is too valuable for us to sacrifice
it in any way, and if England insists upon it we shall be obliged either
to reduce the duties or to remove them altogether. He should
have a good deal to say about the operation of the wine duties and
duties on luxuries. Mr. Behrens said he had an amendment to
move-
100
Silk trade
shrunk.
The pro-
ford Resolu-
tion.
'That in view of negotiations which must precede the conclusion
posed Brad- of a new Treaty of Commerce with France, this Council desires once
more to urge upon Her Majesty's Government the claims of the York-
shire wool industry to be no longer subject to the onerous 10 per cent.
duty imposed upon its products since 1874. Without entering into
details which have been exhaustively treated in voluminous documents
for twelve years past, the Council begs most respectfully to insist
upon two points resulting from the documents, viz., that no specific
duty, unless it be merely nominal, can prevent our worsted and
woollen goods and yarns from being unfairly taxed, and that in case
the French Government should not be prepared to abandon imme-
diately every import duty on wool tissues, the present 10 per cent.
ad valorem duty be reduced to 5 per cent., with a view to its entire
abolition at no distant date. That the President be requested to for-
ward the resolution to Lord Granville, Her Majesty's Secretary of
State for Foreign Affairs.'
The President said he would be very glad to accept Mr. Behrens's
resolution if he would omit from it the reference to the specific duty.
... After some conversation, Mr. Behrens agreed to omit from his
resolution the words, 'unless it be merely nominal.' The President
accordingly abandoned his resolution, and seconded Mr. Behrens's in
its amended form. . . . As since the Treaty of 1860 French competi-
tion has almost destroyed the silk-trade, and many smaller industries,
and also as, at the present time, the worsted trade of this district is
suffering severely from the importation of French wool goods, this
Chamber urges upon Her Majesty's Government to insist upon Reci-
procity in the new treaty, and, failing that, to place countervailing
duties upon all French manufactures imported into this country.
the first part of the resolution he advocated entirely Free-Trade. He
had always been a Free-Trader, and he was so still, but he was bitterly
hostile to one-sided Free-Trade. He would ask Mr. Smith-the
gentleman to whom he alluded-to say whether the working man,
who had a right to have his labour protected, had not to be considered
before the lady who got her soft goods dress at 10 per cent less, at the
expense of the working man. He said, without the slightest hesita-
tion, that unless we could have Free-Trade with France let us put on
Countervail countervailing duties. . . . Sir H. W. Ripley said he thought the
Council was ignoring every industry except the woollen industry.
In
ing duties.
•
•
•
important Resolutions.
The Bowling Iron Works, which had agents in Paris, found a great
difficulty in doing business in consequence of the high duties.
The President, replying to the observations of Mr. Illingworth, said
that if we did not enter into a treaty of commerce with France at all
we should, according to the statement of Mr. Slagg, have the benefit.
of the most-favoured-nation clause. But he must say most decidedly with French
that there was not the slightest probability of France ever refusing to propositions.
enter into a treaty with us, and if she did he did not apprehend that
we should lose any trade of any magnitude. We must have the most-
favoured-nation clause, and we should be free to take what course we
chose, and to put on duties on luxuries, which course would be neces-
sary to bring her to her senses. Mr. Behrens's resolution was then put
to the meeting, and was carried by 18 votes to 1, Mr. Lister being the
dissentient. The President proposed-
Kj
0.
IOI
That this Council considers it most desirable that the Government Vote for a
should send down from the Foreign Office some gentlemen conversant of Inquiry.
Commission
with the special subject to confer with the various Chambers of Com-
as to the details affecting their special interests when the
Government negotiates a Treaty of Commerce with France.
merce
Mr. Oddy seconded the resolution, which was carried.
FROM MR. KENNEDY'S REPORT ON THE INTERNA-
TIONAL CONGRESS OF COMMERCE AND INDUSTRY,
HELD AT BRUSSELS IN SEPTEMBER 1880.
-
"The principal question brought before the Political Economy
section was that of free-trade and protection. There was reason to
expect that some of the French and German members of the Congress
would have explained and defended the course which has been adopted
in Germany, and which is now advocated by influential persons in
France in regard to Customs duties. But this was not the case. No
one present argued the question from this standpoint. It was ex- German
plained, however, that in Germany the agricultural, metal, and textile desire for
industries had united in demanding protection, and had each obtained
it by mutually adopting and enforcing the wishes of the two other
great interests. As to France, it was explained that the apparent
reaction originated with the necessity for raising a larger revenue,
under which circumstance recourse to Customs duties became a ready
means of action, and was advocated by men brought up under older
ideas of political economy and finance, a state of things which was
protection.
102 Mr. Kennedy's report on the Brussels Congress.
Germany.
speedily taken advantage of by certain trades. An interesting point
in the discussion was a proposal made by German and Austrian
speakers for a Customs union between the States of Central Europe.
This proposal met with no favour from the Belgian and Swiss members
of the Congress, who seemed to think that a Customs union between
States of unequal influence and size might lead to union of another
description. The warmth with which the scheme was put forward was
somewhat remarkable. . . . Impatience was expressed by some of the
English as well as foreign speakers at the course which is now taken
by certain Continental countries, and also by the United States, in
framing Tariffs which are, as regards the general trade of the country,
either avowedly or in effect devised to act as protective or differential
measures. Some hope was, however, entertained that in approaching
commercial negotiations an alleviation may be found for a condition of
affairs which is indeed fraught with danger to the prosperity of many
countries, and even to the good relations between some nations. No
resolution was come to on the subject. It is worthy of notice that, at
a meeting of the Belgian Society of Political Economy, Professor von
Kaufmann, of Aix-la-Chapelle, is reported to have given an explanation
to the following effect of the existing Protectionist movement in
Position of Germany :-He said it is an outcome of the patriotism which has
effected the unity of the empire; that Germany has been the scene of
commercial no less than of political wars; that Germany is at present
surrounded by enemies; and that in this state of things it is a patriotic
course, which is every way justified, to seek to produce at home all
that in times past has been purchased from abroad. It would
seem from what we heard and saw that technical education is not
sufficiently attended to in the United Kingdom. . . It appears to
have been shown in the course of the proceedings of the Congress, and
by the excursions to industrial centres in Belgium, that while in this
country, as before stated, we are somewhat deficient ourselves as
regards technical education, we are, further, not duly informed as to
what is passing in neighbouring countries in regard to it; nor as to
improvements in manufacture, either as to design, processes used, or
the manipulation of materials. It seems to be very desirable that
the whole subject should be carefully examined with reference to what
is being done in foreign countries, no less than with reference to our
own requirements. . . . In linen manufacture, and in some descriptions
Belgian com- of glass, ironwares, and machinery, Belgian competition is making
itself felt as regards British trade. But with every allowance for the
inconvenience and loss which particular employers and trades suffer from
this state of things, and the fullest sympathy with them, it can only
[?] be said that the result is an instance of advantage being taken of
the superiority possessed by each country in regard to certain branches
of trade. Its effects may indeed be lessened by careful attention to
processes of manufacture, and by development of industrial education.
With respect, however, to advantages derived from cheapness of labour
and length of hours of labour-the latter being in Belgium, in some
instances, 130 against 56 in this country-we should not wish to
the original. obtain them at the ultimate cost which they involve; in fact, we
petition.
These
figures are in
European
customs'
union pro-
posed.
Technical
education.
•
4
Continental views as to Free-Trade and Protection. 103
confidence.
cannot obtain them if we do wish for them. While, with proper
attention to our own wants and circumstances, British industry need
not, within its own limits [what means this ?], fear any competition.
His Excellency M. Saintelette, Minister of Public Works, replied
as follows:-Excess of self-confidence is the greatest danger to pro- Excess of
sperity. It was never to be more feared than at the present time, when
neglect of inventions and new appliances, which are rapidly brought
into use, may cause a country speedily to fall behind its competitors.
. . The subject of industrial libraries was then taken. Doubts Workmen's
were expressed how far workmen could and would make use of such
libraries. On the other hand, the example of the Library of Industrial
Art attached to the Royal Museum at Brussels was cited as proving
that the working classes could and did derive considerable advantage
from such institutions.
libraries.
•
General Meetings-Free Trade and Protection.
September 7.
Continent.
"M. le Hardy de Beaulieu, who presided, remarking that many Opinion on
persons from France and Germany were present, asked that some of
them would be so good as to explain the objects of the protectionist
reaction in those countries, and to state the advantages which were
obtained or were looked for from the adoption of a protectionist
policy. . . . M. Hirschberg, the first speaker, maintained that ex-
perience was in favour of free-trade, and that the reaction towards
protection was temporary, and would end in failure.
"M. Limousin, editor of the Gironde, gave some explanation re-
specting the new General Tariff recently voted by the French Chamber
of Deputies. The victory obtained thereby on the side of protection
was apparent rather than real. The protectionists had by no means
obtained what they sought for. The success which had attended their
efforts was owing to the energy of certain individuals, and to the
pressure exerted by certain trades, not to any general feeling in the
country. . . . Mr. Stephen Mason, President of the Glasgow Chamber
of Commerce, reviewed the free-trade movement in England since 1840.
M. Sève expressed surprise that no one had arisen to uphold
bona fide protectionist views. He thought that in the United States
protection was a political, and not really an economic, movement. .
M. Kaufmann proposed, as the means of reconciling protection and
free-trade, the creation of a Central European Customs Union between
Germany, Austria, France, Switzerland, Holland, and Belgium;
directed against England, Russia, and America.¹ . . . M. Frédérix
•
This proposition may be consummated. If so, it must give an enormous
impulse to the movement for transferring from our country her manufactures and
shipping; in connection with which it is necessary for us to remember how much
better France, and still more such a Zollverein as this projected one, are
situated geographically for navigation and commerce, and how foolish will in
the end our statesmanship look, if in blind devotion to a theory, and through
unwillingness to retrace steps false, though at the time justifiable, we deprive our-
selves of the weapons whereby alone can our pre-eminence be upheld, and of our
104 Mr. Kennedy's and Mr. Craig-Brown's reports
J
said that complete abolition of customs duties is an impossibility.
He estimated that 40 per cent. of the revenue of European States
is derived from customs duties. Under existing circumstances, he
asked, How can these be replaced from other sources of taxation?
But he only defended duties on certain articles of food, and on finished
goods, not on prime necessaries, raw materials, or articles for use in
German ex- processes of manufacture. M. Hirschberg explained that in Germany
cuse for pro- the protectionists allege that they only ask for duties in order to balance
the inferiority of national industry, and to afford it, in the midst of
powerful foreign industries, the means of development. Mr. T.
J. Smith, President of the Hull Chamber of Commerce, said that
without disputing the results attributed to free-trade, we should not
lose sight of the fact that these results had been largely promoted by
other causes; for example, the great extension in late years of
the means of international communication. M. Strauss expressed
himself in favour of systems of customs-union. M. Brunet also
declared himself in favour of customs-union; he considered that
abolition of customs duties did not afford a practical solution of the
question; a grievance existed, namely, that certain states, by their
fiscal system, did exclude the products of other states from their
markets; he appeared to be in favour of a policy of retaliation. M.
de Seigneux, delegate of the Swiss Government, said . . . as regards
customs-unions, from the point of view of minor states, they are not
desirable. M. Berdolt advocated a tariff for fiscal purposes, in contra-
distinction to one framed to afford protection. He approved gradual
reductions of duty under engagements made by treaty. M. Limousin
maintained that minor states have nothing to fear from countries
which govern themselves. He did not approve the English system of
taxation, but did not offer criticisms of a practical character.
"Mr. Kennedy, after explaining that he had been sent by Her
Majesty's Government, considered it to be an undoubted fact that
the commercial prosperity of Europe in late years has been owing to
the adoption, to a greater or lesser extent, of the principles of free-
credited with trade. . . . The great development of trade in late years in Europe
Free-trade
too much.
has been confined to the states which have entered into the Commer-
cial Treaty system founded on the Commercial Treaty of 1860 (Mr.
Cobden's Treaty) between England and France. M. Van Oye declared.
himself to be a reciprocitist; Belgium, he said, could no doubt live
under a free-trade régime. But it is becoming necessary, he said, to
defend native industry against the protection with which neighbouring
countries cover their own industries. It would not do for Belgium
to take the lead in suppressing customs duties. Belgium and other
minor states should adopt a policy of reciprocity towards their neigh-
bours. Mr. Craig-Brown, delegate of the South of Scotland Chamber
European
customs'
union.
•
}
·
liberty to wield them and our power, when it is possible to do so with good
effect. Let the position of our seaports with reference to the great majority of
other ports be well studied on a globe, and our disadvantages under the new
short-cut modes of doing business will be unpleasantly apparent. This considera-
tion may well stop us in the facilis descensus from which it will be so difficult,
if not (as I fear) impossible to again mount up.-R. A. M.
on the International Congress.
105
of Commerce, thought it well to point out that impatience is arising in
England at the fiscal policy of continental states and of America, that
from this cause free-trade is losing some ground, and calls for recipro-
city are heard. M. Sève said that reciprocity and protection are
convertible terms. M. Steinmacker urged strongly the proposal in
behalf of a Central European Customs-Union, and expressed astonish-
ment and displeasure at the disfavour with which the scheme had been
received by the meeting. . . . The meeting broke up without any
votes being taken."
P.
SOUTH OF SCOTLAND CHAMBER OF COMMERCE.
The members of this Chamber held a meeting in the Public Hall
here.
statement.
échange.
Belgian Congress of Commerce.-Mr. T. Craig-Brown, Selkirk, gave Mr. Craig-
in a report of the International Congress of Commerce and Industry Brown's
held at Brussels in September, which he had attended as delegate of
the South of Scotland Chamber. That the British Government
was also awaking to a sense of the true proportions of the commercial
interest was evident from the presence of Mr. Kennedy of the Foreign
Office at the request of Lord Granville. Mr. Kennedy was accom-
panied by Captain Clipperton, lately appointed Britannic Consul at
Philadelphia. . . . Of abstract questions taken up by the Congress
none attracted so large a sitting or awakened such lively interest as
that of protection and free-trade. The French equivalent for the
latter term being "libre échange," or free exchange, it follows that the Libre
two terms do not cover precisely the same ground in both languages.
As at present understood in England, "free-trade" does not necessarily
imply free exchange, but includes what is known as "one-sided free-
trade." With French-speaking people, on the other hand, "libre
échange" does not invariably cover "one-sided free-trade," though it
often does. . . . M. Kaufmann advocated the creation of a customs
union between Germany, Austria, France, Switzerland, Holland, and
Belgium, which he believed would conciliate protection and free-trade.
Mr. Brunel, Secretary of the Ghent Chamber, approved of reci-
procity, and would not give free entry to countries which closed their own
frontiers. . . . Mr. Craig-Brown said-The prospect from a British Prospects of
point of view was not encouraging. In America the import duties were
practically prohibitive; Germany had returned to protection, France
was wavering, and even in Belgium, where free-trade principles were
almost universally professed, there was no symptom of those duties
being removed which at present hampered the importation of foreign
goods. If there was at present developing in England an impatience with
this state of matters, and a cry for retaliatory tariffs (of which there could.
free-trade.
•
·
106
Edinburgh Chamber of Commerce
free-trade on
Continent.
be no doubt), it was in the power of those continental countries repre-
sented in the Congress to stop that cry by advancing in the direction of
free-trade. England had done what she could, and the future of Adam
Smith's doctrine lay in the hands of the Continental Powers and of
No hope for America. . . My individual opinion, and that of nine-tenths of the
English members, nevertheless, at the close of the sitting, was that
there was very little hope of the early adoption of free-trade by the
governments of even the most enthusiastic devotees of the theory. In
private conversation afterwards this impression was confirmed, and
indeed the Finance Minister of Belgium significantly stated at a ban-
quet held later on, that he did not agree with all the conclusions at
which the Congress had arrived. As to price, notice must be
taken of the advantages enjoyed by our Belgian competitors. Not
only are wages very much lower, but the hours of work for these
wages are considerably longer, a point which affects not only the pro-
portion of labour in a pound of yarn, but the proportion of rent and
capital charges. Then again comes in the question of protection. It
is evident that Belgian spinners can get as much more for yarn they
Belgian com- sell in Belgium as would be levied on similar yarn imported from
Strength of
petition.
other countries, and this artificial protection may assist them to sell
abroad on narrower profit. True, protection would be no advantage
to them were everything protected, but they take care on the conti-
nent to let the raw material in free. This very great unfairness is
making itself felt throughout the woollen trade of Great Britain. In
my humble opinion it should not be allowed to continue. A vote
of thanks was passed to Mr. Brown for his valuable report.
•
Q.
!
•
FRENCH BOUNTIES ON SHIPPING.
"The Edinburgh Chamber of Commerce and Manufactures have
presented to Earl Granville, Her Majesty's Secretary for Foreign
Affairs, the following memorial on this subject:
"If the system is introduced, and carried out to any considerable
extent, its results must be highly prejudicial to British shipbuilders
and shipowners, and to British maritime commerce generally.
Enormous
"To illustrate the effects of these bounties, your memorialists will
inducement take them as applied to the case of a first-class iron screw cargo steamer,
given.
2100 tons gross and 1400 tons nett register, with engines sufficient
for steaming continuously not less than ten knots per hour. At pre-
sent prices such a steamer, with all the best modern appliances, might
be built and completed for sea in this country at about £17 per gross
register ton, say for 2100 tons, £35,700. If built in France the pro-
posed bounty on the construction of this steamer would be:-
on proposed French shipping bounties.
"2100 tons gross, at 60 francs per ton,
(C
'300 tons weight of engines, boilers, steam cranes,
steam winches, etc., at 12 fr. per 100 kilo-
grammes=120 fr. per ton,
36,000
fr. 162,000
being at 25.50 francs per £1, £6353, equivalent to £17, 16s. per cent.
on the value of £35,700, or to £3 per gross register ton.
(6
Assuming that this vessel might steam 48,000 miles in one year
(equal to 240 miles per day for 200 days in the year), the separate
bounties on her navigation would be as follows:-
If built out of France for French owners, 1400 nett register tons,
at 1 francs per ton=2100 francs, 48,000 miles at 2100 francs
per 1000 miles,
fr. 100,800
or at 25.50 francs per £1,
£3,953
being £11, 1s. 5d. per cent. on £35,700.
If built in France for French owners, at 1½ francs per
ton per 1000 miles, as above,
Additional bounty, at 15 per cent.,
·
107
fr. 126,000
700.
Navigation bounty for first year,
being £12, 14s. Sd. per cent. on £35,700.
3,953
593
£4,546
On this footing, and after making allowance for the annual reduc-
tion of 5 centimes in the rate of bounty, the aggregate sums for the
navigation bounties, for the ten years during which they are to con-
tinue, would amount to £33,590 if the ship were built out of France,
or to £38,620 if built in France; and if to this latter sum be added
the construction bounty of £6353, it is seen that the total bounty is
brought up to £44,973. Sums like these are amply sufficient to re-
turn an excellent profit on ships under the French flag, even if no
profit at all can be gained from them in any other way.
position of
"It should be kept in view that British ships have no commercial Threatened
privileges over those of any other nationality. They can engage in British
no trade in which all comers are not free to compete on equal terms. ships.
These bounties, however, are sufficient to give French shipowners an
overwhelming advantage in this competition, and the result may be to
drive British shipowners out of trades all over the world, developed
and hitherto retained mainly through their own skill and enterprise.
Whether so intended or not, the bounties may come to be a bid, and
a heavy one, for the transfer to France of the maritime commerce now
chiefly in British hands. British shipowners may be compelled to
retire from an impossible competition, and to dispose of their ships to competition
those who can turn them to great advantage independently of any may be im-
working profits, or they may be induced to domicile themselves in
France, and to acquire the rights of French citizens on purpose to
secure the enormous premiums for carrying on such business as theirs
under the flag of France.
"Your memorialists believe that a scheme of so extraordinary and
exceptional a character, fitted as it is to produce the most serious and
far-reaching consequences to British maritime commerce, ought to
Bounties
even in
British
coasting
trade.
Shipbuilding
in France.
108
Paper read by Sir Hugh Allan.
receive the immediate and anxious consideration of Her Majesty's
Government. They think that all reasonable efforts should be used
to prevent its being carried out, or, if carried out, to counteract the
prejudicial effects that may be anticipated from it."
R.
EXTRACTS FROM MEMORIAL PRESENTED, Nov. 26, TO
LORD GRANVILLE ON THE PROPOSED FRENCH
BOUNTY TO MERCHANT SHIPPING.
"This bounty is not to be confined to vessels engaged in the trade
with France, but may be claimed by all French vessels running be-
tween any foreign termini-thus, a French line running between this
country and New York would be entitled to the bounty, and perhaps
between one port in the United Kingdom and another, certainly
between one British colony and another.
"The bounty on French-built ships is computed to yield about
£12,000 on the first cost of a vessel costing about £60,000 in this
country.
"This will stimulate the shipbuilding of France, and encourage the
establishment of English shipbuilders in that country. Approaches
have already been made to some British houses with that object. But,
doubtless, the first effect of the new French law will be highly bene-
ficial to the home industries of this country, for a great increase of
business in our shipbuilding yards will be the immediate result.
"It will, however, prove a delusive benefit if we have simply
forged weapons to be turned against ourselves-if we have supplied
the means whereby the maritime supremacy of Great Britain may be
destroyed, her mercantile marine and her carrying trade taken from
her, and her seamen and shipowners possibly induced to transfer their
services and their capital to France.
"We venture to submit to your Lordship that the question in-
volved in this French bounty to shipping is not merely a commercial
question affecting our industry, but is a national question affecting the
well-being of the State, and of the utmost gravity to the nation, to
which it will be well that the Legislature give consideration ere it
be too late.
"We do not offer any suggestions to your Lordship to meet the
case; no merely local remedy seems to us suited to deal with it. It
is matter for instant diplomatic action and for consideration in our
commercial treaties. The proposed Bill is represented by some autho-
rities to be at variance with existing treaties between this country and
France, but of this we are not fully informed."
109
S.
FRENCH SHIPPING BOUNTIES.¹
To the Editor of the “ Shipping and Mercantile Gazette."
to enter into
"SIR,-When such bodies as the Edinburgh and Glasgow Chambers
of Commerce denounce in the strongest terms the threatened French
shipping bounties as a proceeding fraught with consequences in the
extremest degree injurious to the shipping interests of our country,
there is no occasion to multiply testimonies and warnings, although that
I might do,-(especially in your columns). Let me, in a few words,
adduce some considerations which may well be present in the minds of
the deputations who, I am glad to learn, will be received to-morrow by
the patriotic Secretary of State for Foreign Affairs. The aim of our Deputation
good neighbour across the channel is to make France, by the trans- Granville.
ference hence of as much as she can obtain of our commerce, our
manufactures, our shipbuilding, our shipping, our packet lines, and our
warehousing business, greater commercially, and to make her more
powerful politically as well as stronger in ways too familiar to require.
mention here. Why should Britons help her in this? Its intention and
effect obviously are not such as British statesmanship should go an inch
out of its way to facilitate. If the Treaty of Commerce which French Not the time
statesmen wish our nation to enter into is at all like the Treaty which is new Treaty
now in force, we shall most unnecessarily, and, I do not doubt, also most with France.
decidedly hamper our own action, and be helping France to carry out
her bold and not fully developed designs. We do not know what
arrows she, who is very astute, as we now find, may have in her quiver.
These may be very awkward ones I fear. Surely at a time when
Germany and the United States and Russia, and probably other Powers,
are contemplating legislation similar to that of France in favour of
their shipping and navigation, it would be most unwise--because in
ways that we cannot foresee hazardous-to tie our hands and to
put ourselves into a position from which we cannot, till ten long years
elapse, extricate ourselves and recover that liberty of action, the value
and necessity for which bitter experience will have taught us.
Let us
therefore avoid new treaties, and retain the power of discriminating,
or, if your readers prefer the word, of retaliation-a word which I do
not like, by not binding ourselves through any instrument to admit.
the produce and manufactures of other countries free of duty. Let us
avoid the obligation to supply other countries with coal free of export
duty; let us, above all, regain the power of filling our exchequer by
import duties, if ever circumstances shall make it expedient to spend
money largely. If the French know that the Chancellor of the
Exchequer has this very large source of income to draw upon, and
that at the same time he, by differential duties, can mark dissatisfac- Power to
tion with Powers who do not respond in a friendly manner to our
retaliate.
1 From the Shipping Gazette of 25th November 1880.
Shipping Gazette' on proposed
Weighty
opinions
mercial
treaties.
liberal admission of their goods, they deriving, as they do, truly vast
advantages from admission on favourable terms to the British market,
will certainly be much more careful not to endanger the inestimable privi-
lege, for such it is, and will, beyond a doubt, be much more conciliatory
and amiably responsive. I, for my part, have not the smallest doubt that
the present Treaty engagements are very pernicious. They have justly
against com- been pronounced objectionable, or inconsistent with sound principles of
commercial policy, by such ardent free-traders as Messrs. Hugh Mason
and John Slagg, members of Parliament, in their 1872 report regard-
ing the French Treaty, presented to the Manchester Chamber of
Commerce, and, I presume, adopted by that very influential Chamber.
To go no further for evidence than the distasteful twistings in respect
to wine duties which the unfortunate French Treaty has necessitated,
surely the troubles that are accumulating upon our negotiators, even in
that single and secondary matter, are enough to sicken and arouse
shrewd statesmen. All I can say is, after looking at the Blue-Book on
French industry and commercial Treaty questions, and with the
knowledge that reaches me from different quarters of what practical
men think on the subject, the Foreign Secretary need not apprehend
that his ceasing to treat with the French will cause regrets in com-
mercial circles.-Yours, etc.,
"AN EX-MEMBER OF PARLIAMENT.
IIO
Why should
Britons
help?
"EDINBURGH, Nov. 24."
T.
From the Shipping Gazette of 27th November 1880:—
"We published on Thursday a letter from an ex-member of Parlia-
ment, in which the views of those who compose this movement are
clearly set forth. Our correspondent describes, without, as it seems
to us, any exaggeration, the aim of 'our good neighbour across the
channel' when he says that it is to make France, by the transference
hence of as much as she can obtain of our commerce, our manufactures,
our shipbuilding and shipping, and of our packet lines and our ware-
housing business, greater commercially, and more powerful politically,
as well as stronger in ways too familiar to require mention.' And he
asks-Why should Britons help her to do it?' The question is
pertinent, although the answer to it is not a very easy one. It is true
that we have commercial treaties with France which are under notice of
expiration, and that we have an unrepealed law on the Statute Book
which enables any Administration, with the assent of the Sovereign,
to adopt a retaliatory policy without applying for the sanction of
Power to re- Parliament. The retaliatory clauses in the Customs Consolidation
nade use of Act (16 and 17 Vict., cap. 106 and 107) have been law for over a
taliate not
French shipping bounties.
by treaty
quarter of a century, but they have never been acted upon; nor is it
likely, so far as we can see, that they will be, inasmuch as their opera-
tion would practically involve a reversal of the commercial policy
which this country has finally adopted. But we are about to revise.
our treaty arrangements with France; and this is the opportunity to
which our correspondent, and those who think with him, look forward
to put a legitimate pressure upon the French Government and Legis-
lature. There is no doubt that the Commercial Treaty of 1860, and France
the international arrangements which have followed it, have proved in gained more
their operation more beneficial to France than to this country. This than Britain.
is a fact which has been vouched for on the authority of the French
returns, which show that under these treaties the exports of French pro-
duce to the United Kingdom have far exceeded in amount and value
the imports from the United Kingdom into France. . . . The com-
mercial circles in this country-even those most interested in the trade
with France—are becoming alive to the fact that the French have long France's gain
been turning us to account, and are now bent upon achieving a great expense.
commercial position mainly at the expense of England. This is what
the adoption of the bounties on shipping and navigation really means.
To be forewarned is, it is said, to be forearmed, and the British
Government who would neglect the warning, would incur a heavy re-
sponsibility. France is a wealthy country. She has a splendid trade,
large resources, and great industrial intelligence and power. She has
no necessity to resort to such poor-we had almost said contemptible
-expedients as those of special bounties to native industry. . . . But
if France chooses to adopt this mistaken policy, and, by persisting in
it, to alienate her best customers to set, in fact, the whole world
against her—she must be prepared for the consequences, which cannot
fail to be disastrous to her best commercial interests."
at England's
U.
<<
EXTRACTS FROM PRIVATE LETTERS.
III
"18th November 1880.
Nothing is likely to be done with the Government by friendly
deputations or 'talkee talkee' of any kind, but they will move fast
enough under the pressure of a public outery backed up by the
working-man's vote. . . . I would like to have explained the kind of
negotiations that are 'upon the tapis' in regard to shipping, and which
serve to close the mouths of those who ought to speak out. My own "Squaring.”
interest even might, in certain circumstances, be served by the bounty
system, which I abominate. Steamers, you know, are cosmo-
Register-
ing under
French flag.
Large in-
ducements.
A strong
Liberal's
opinion.
II 2
1
Letters on shipping bounties.
politan.... A policy which, as I believe, has already worked infinite
mischief, and which, although it may be profitable to individuals who
know how to work matters for their own ends, leads only to ruin so
far as the country is concerned."
|
"19th November 1880.
"Here friends of my own have been applied to for liberty to register
their vessels under the French flag in order to earn the bounty. A
1000 tons vessel would get about £1000 bounty for an Australian
voyage. A builder would get about £2500 bounty for building her
in France."
"26th November 1880.
"The final result will be the same whether our industries are to be
throttled by the bounty system, or starved to death by arrangements
under which we import foreign manufactures to the exclusion of our
own, and from nations that will not purchase the productions of our
labour in return."
"30th November 1880.
"In the Shipping Gazette of yesterday's date there is a copy of the
memorial on the Shipping Bounties presented to Lord Granville by
the deputation which waited on him a day or two ago. It is well
worth reading. I believe every word of it is true. It fully confirms
all that was said in the Edinburgh Chamber's memorial. . . . My
own opinion, however, is that our Government will hesitate to commit
themselves to the terms of any treaty until this matter of the bounties
is disposed of one way or other."
"9th December 1880.
"The best contribution to the deputation was by Glasgow, and
read by Sir Hugh Allan. It proved that a steamer of 2500 tons
would make between £8000 and £9000 profit in the United States
trade before an English vessel could net one penny! . . . The fetish
of 'free-trade' binds many, and it is very difficult to get many poli-
ticians to touch a subject which needs anything else than a shout of
'free-trade for ever!' I saw a Sunderland builder to-day who is at
work for the French bounty people."
66
"1st December 1880.
Edinburgh does not feel to any great extent the effects of the
French bounties, and treaty operations, and as a rule people won't
move unless their toes are tramped upon. Should the French
subsidise the shipping, it will make a greater outcry on the subject,
and may lead to good in compelling Government to redress the matter.
I think the sugar refiners are very badly used, and their only hope of
obtaining redress is by united action and co-operation with other
bodies similarly affected. So long as the public get good and cheap
sugar, they will not move."
"22d December 1880.
"The shipowners are evidently quite satisfied to haul down the
Union Jack on the terms offered, and seem hardly disposed to make
A great steamship owner's manly declarations.
113
even the show of disapprobation or regret. "Auri sacri fames," but
the day may come when they will repent of their greed; for I do not
doubt that the French Government will eventually (and by degrees, as
the bona fide French mercantile marine grows stronger) confine their
bounties to French-built and French-owned ships.
"In the meantime, the 'cosmopolitan' teachings are bearing fruit,
and that fruit is greed, avarice, and bad citizenship."
tonnage
Deputations from Marseilles, Bordeaux, Havre, and other ports Amount of
have begged M. Léon Say and the Senatorial Committee to expedite building for
the Merchant Shipping Bill, on the ground that vessels built abroad France.
and registered in France before it passes are to profit by the bounty;
that contracts are consequently being executed in English yards, and
that a month's delay would enable 50,000 or 100,000 tonnage to get
registered in time."-Times, December 1880.
66
MR. MACIVER, M.P., ON FOREIGN BOUNTIES.¹
"We are told, however, that foreign nations, so far from desiring
to extend the bounty system to other trades,' are uneasy about it as it
is, and are feeling their way towards getting rid of it.' But surely those
who make such statements must have forgotten what is already pro-
posed by France in regard to shipping. It is a matter of commen
notoriety that an extension of the bounty system to shipping is
actually intended, and by other nations as well as France; but it does
not necessarily follow that all British shipowners would suffer by the
arrangement. Ships are cosmopolitan, and shipowners are in many ships are
instances capitalists to whom the nationality of their vessels matters cosmopoli-
little. There are some of us who, on being sufficiently remunerated,
will have no objections to transfer our tonnage to the allegiance of a
foreign state.
tan !
be too effec-
"If the mercantile marine is worth anything as an adjunct to the Bounty will
Royal Navy, France, under the proposed extension of the bounty beat.
system, will soon have the control of a valuable fleet which at present
belongs to Great Britain; and if we are as a nation foolish enough to
agree to the renewal of a commercial treaty under which such a thing
is possible, there is, I think, no way in which France can so cheaply
add to her navy as by paying a bounty to British shipowners to pro-
cure the transfer of their property to the French flag. . . . DAVID
MACIVER."1
1 From the Liverpool Daily Courier, 10th December 1880.
H
1
114
Little dis-
tress in
France.
An intelligent correspondent reminds, that although, no doubt,
if we had the transactions of the last twenty years to do over
again, advantages and security for our foreign trade might have
been obtained, still, "as matter of fact, the Cobden Treaty did
prevent the reactionary fiscal policy of M. Thiers from taking
effect; and after he had denounced our Treaty, he renewed it, in
better terms too than before. The negotiations at Paris in 1872-3
occasioned the withdrawal of the scheme for compensatory duties
adverted to in pages 14 and 15, and also led to a large extension
of the provisions relative to navigation in the Treaty of 1860."
W.
GROWTH OF WEALTH IN FRANCE.
The bad seasons which have tried all the rest of Western
Europe have resulted in France likewise in a series of deficient harvests
-the last, as with ourselves, having been probably the worst of the
century. France, as is well known, is a country of peasant proprietors,
who, it might be thought, would be ill able to bear a series of bad
harvests; but, severe a trial as that was, it was not the only one they
First Napo- had to go through. One of the ideas of the First Napoleon in his war
leon's idea as to the knife against this country was to encourage the cultivation of
to beet.
beetroot in France, so as to make her independent of West Indian
sugar. The idea has borne such good fruit that our own sugar refiners
complain of being ruined by the French; and beetroot has become one
of the principal crops of many important French districts. Last year
this great crop also suffered from the incessant rain and cold. The
silk crop, again, was a total failure. And-a still more serious matter
-so was that of wine. .. Under this accumulation of misfortunes
almost any agricultural population, however large might be the resources.
in capital and skill of the individuals composing it, might be expected
to suffer distress. How much more, then, 6,000,000 of peasant pro-
prietors? But, as a matter of fact, we have heard comparatively little
of distress in France. Not only has there been nothing of the suffering
witnessed in Ireland, but there has not even been any extensive in-
ability to meet engagements, such as in England has compelled landlords
to grant reductions of rent.
"On consulting the French foreign trade statistics, we find that
from 1873, when the disturbance caused by the war and the Commune
may be supposed to have passed away, to 1875 inclusive, the exports
exceeded the imports by from 8,000,000 to 13,500,000 sterling
annually. In 1876, however, there was a reversal of the balance of
trade, the imports in that year exceeding the exports by 16,500,000
((
•
Prosperity of France.
→
V.
•
Energy of the French people.
115
sterling. The excess of imports over exports has continued ever since.
In 1878 it amounted to £43,646,680; last year it rose to £54,845,200;
and in the first nine months of the current year it actually reached
£51,177,520. . . . Our purpose rather is to show what has been the
effect of the series of bad harvests upon her foreign trade, and how
immense must be her accumulated wealth, and how widely diffused
must competence be among her people, since she has met all the
demands upon her without visible effort. There has not been a bread Contented-
riot in any town, there has been no agitation on the part of any class French
for a reduction of their burdens, nor any difficulty in collecting the people.
taxes. On the contrary, each year ends with a handsome surplus, and
each session of the Chambers witnesses a remission of taxation.
ness of
strength for
"There is one other lesson taught by the figures, which is that, France's
when France next engages in war, she will he found a formidable growing
adversary even by the most powerful coalition. The greatness of her war.
prosperity, and the command she now has of her own destinies, will
prevent her from rushing into hostilities with a light heart; if but
she is once worked up to the fighting point, her vast army will be
supported by wealth and credit equalled only in England and the
United States. Even though she has lost Alsace and Lorraine, she
now bears her enormous taxation as lightly as she bore the much
smaller taxation of 1869. And, if driven to it, she could afford to
spend a couple of hundred millions annually over and above her
present expenditure for years together without being exhausted." . .
-The Saturday Review, November 6, 1880.
From an Edinburgh paper of 29th December 1880-
"Few nations, however, will be able to look back on the last few Commercial
years with the calm satisfaction enjoyed by France. . . . From this prosperity of
chaotic mass of ruins a new France has emerged, as strong, as pros-
perous, and seemingly as stable, as any that have gone before it.
This consummation has not been brought about by any quiet, inactive
growth, but by the determined and energetic action of the French
people.... There is abundant evidence of Gallic prosperity. The
factories are all in full swing, iron and coal fear competition with no
country in Europe, and the increase in railway traffic is so great, that
the companies in several cases have had to get foreign countries to pro-
vide new machinery. The financial statistics of the country show
conclusively that the activity displayed in these different branches is of
no effervescent or transitory nature, but betokens a real prosperity
among the people. . . . Statistics show without doubt that the average
Frenchman, in point of economy and commercial enterprise, surpasses
most and equals any countryman of Europe. . . . No branch or in-
dustry in France has during the last year been extraordinarily active.
All that can be said is that railways, mines, factories, farms, and work-
shops have all been fairly busy."
116
Mail steamer
subsidies.
Opinion
strengthen-
ing.
X.
THE BOSTON SHIPPING CONVENTION.
[BY ANGLO-AMERICAN CABLE.]
PHILADELPHIA, October 8.
"Mr. William Bates, of Buffalo, opposed the granting of bounties,
but, on the other hand, advocated the imposition of discriminating light
and other duties on foreign vessels entering American ports.
"Mr. John Price Wetherill, of Philadelphia, said that Congress ought
to grant bounties, so that they might compete with England's mail-
subsidy system of supporting steamship lines. He said that to run an
American Transatlantic steamer it cost $700 monthly in wages more
than it did for an English steamer of the same tonnage. He opposed
free ships.
A bounty to
United
builders
proposed.
"Mr. J. P. Townsend, of the New York Produce Exchange,
States ship- proposed a compromise to the effect that a 10 per cent. bounty should
be given to American shipbuilders; also that the purchase of foreign
ships be permitted, provided that a 10 per cent. import duty be
imposed on them.
"Mr. Henry Winsor, of the Philadelphia Board of Trade, thought
that American shipbuilding should be encouraged, and that the
Navigation Laws should remain unchanged. He opposed the
admittance of foreign ships, even if an import duty be paid, as this
would put the American stamp on something not American. 'We
might as well,' he said, ' try to found a family by adopting other men's
children.'
“Mr. William H. Webb, of the New York Chamber of Commerce,
said that the Americans paid from 90 to 110 million dollars in freights
yearly to foreign carriers, and that every European nation encouraged
shipping in various ways. He declared that America must do
similarly by giving ocean mail subsidies, remitting the unjust duties.
on ship materials and stores, repealing taxation, reducing the owner's
liability, and granting bounties of, say $5 per ton on ships in the
foreign trade. He opposed any policy tending to abandon American
shipbuilding.
"Mr. John Ordway, of the Boston Merchants' Association, though
not a shipowner, strongly advocated bounties to encourage American
shipping.
"Mr. Seth Low, of New York, opposed the granting of bounties as
a bold proposition.
"The Townsend compromise was defeated. . . . The proposition
was adopted by 63 to 14. . . . The proceedings continue to attract
great attention throughout the country. Several of the free-ship
advocates went over to the other side on the final vote."-Shipping
Gazette, 9th October 1880.
February 15, 1881.
A ministerial project is now in progress or operation for spending
(I think) more than a quarter of a million pounds sterling on United
States-built packet-ships.
American competition.
Y.
EXTRACT FROM "THE CHIEF CAUSE OF OUR WANT OF EMPLOYMENT
AND LOSS OF REVENUE."
"The United States are now the chief manufactory for the whole
world for the following articles, in the making of nearly all of which
England was once pre-eminent :-
Rifles.
Ammunition.
Clocks.
Watches.
Organs.
Pianofortes.
Joinery Work.
Stoves.
117
Furniture.
Locomotives.
Agricultural imple-
ments and machines.
Small machines and
tools, such as drills,
axes, etc.
articles.
Besides the above, the Americans successfully compete with us in the Use of
manufacture of hosts of other things with which we once supplied the American
world, such as locks, safes, machinery of all kinds, etc. We all know
that there is scarcely a house of the lower and middle classes without
an American clock, and these are to be seen by hundreds in the shops
of every town. There are in London about a dozen agencies for
American organs, and half that number for American stoves."
"There is one remarkable aspect of the American Presidential
election which, we will not say has been sedulously disguised from the
English reading public. . . . Whatever else that election may signify,
it is a protest of the most emphatic kind against free-trade.
The United
States
entire tactics of the defeated party had to be changed in the middle emphatic
of the contest in order to relieve its candidate from the dangerous against free
and, as it turned out, the fatal charge of being an out-and-out free-
trader. . . . In short, protection to domestic industry is wrapped up
with all American history as well as with all American sentiment."
St. James's Gazette, 12th November 1880.
trade.
States
'WOOL,' November 20, 1880, gives the following:-" Free-trade What United
is not likely, in our day, to be adopted by this country. We have it periodicals
among ourselves, and with the rapid development and growth of the say.
country, that almost suffices."-United States Economist.
"Whose country [the United Kingdom] having lost its commercial
foothold in the United States, is struggling to regain it, by seeking to
induce our Government to adopt a policy which we believe would be
disastrous to the vast manufacturing interests of the American people.”
-From the New York Carpet Trade.
!
A Prussian
Board of
Trade.
Kinds of
trade that
are advan-
tageous.
118
Z.
"The establishment of an Economic Council for Prussia (to be
extended hereafter to the whole empire) was formally announced in
Berlin yesterday. This is the first important result of Prince Bis-
marck's assumption of the office of Minister of Commerce. The
members of the Council are to be selected by the Government from a
list submitted by the Chambers of Commerce, and other bodies formed
for the promotion of trade and industry. A certain proportion of the
deputies will belong to the working classes, and it is intended that the
advancement of their interests shall form one of the principal objects
of the Council.”—St. James's Gazette, 20th November 1880.
Gentry
should use
home stuffs.
Wise views in the seventeenth century.
AA.
r
FROM " AN ESSAY ON THE STATE OF ENGLAND," BY JOHN CARY, 1695.
"A benefit to the nation are artificers, who bring advantage to the
nation by supplying it with things which must otherwise be had from
abroad for its own use, as also with others proper to be sent thither
for sales. . . It appears to be the great interest of England to ad-
vance its manufactures, . . . by discouraging the importation of com-
modities already manufactured.
(
"I shall therefore lay down such general notions as may without
dispute be allowed by all unbiassed persons, which are these:-
CC
First, That that trade is advantageous which exports our product
and manufactures.
Second, Which imports to us such commodities as may be manu-
factured here, or be used in making our manufactures.
CC
CC
•
Third, Which encourages our navigation, and increases our seamen.
"One thing which I aim at, is to persuade the gentry to be more in
love with our own manufactures, and to encourage the wearing them
by their examples, and not of choice to give employment to the poor
of another nation whilst ours starve at home.
Value of
ing business.
"Refining of sugar hath given employment to our people, and
sugar refin- added to their value in foreign parts, where we found great sales, till
the Dutch and French beat us out; and this was much to be attributed
to the duty of 2s. 4d. per cent. lately laid on Muscovado sugars,
whereby they were wrought up abroad above twelve per cent. cheaper
than at home, and though that law is now expired, yet 'tis harder to
regain a trade when lost, than keep it when we have it."
FROM "THE INTEREST OF SCOTLAND CONSIDERED," 1733.
"The industrious will always go where industry is most encouraged,
and where he may carry on his business with the greatest freedom,
without any restraint or incumbrance."
French view of 1753.
119
BB.
The following numerous clippings from various parts of the
two volumes of Le Négociant Anglais are left in the language of
the Continental edition, 1753, the translator's notes wherein are
indicated by brackets.
From the discours préliminaire of the translator:
French com-
seventeenth
“Tandis que l'Angleterre et la Hollande avoient partagé entre Low state of
elles le commerce de l'un et l'autre monde, la France n'avoit été merce in the
occupée qu'à éteindre le flambeau de la discorde entre ses propres century
enfans, ou à se venger des ennemis qui l'avoient fomentée. Riche
par l'abondance et la variété de ses productions naturelles, mais
encore simple en ses besoins, elle songeoit même assez peu à
multiplier la matiere de ses échanges: quelques soieries d'un luxe
encore trop grand pour être commun, des toiles en petit nombre,
des ouvrages de fer et d'acier, quelques mode étoient les seuls objets
de ses manufactures. Ses colonies reconnoissoient sa domination,
mais leurs productions passoient entre les mains des Anglois et des
Hollandois; parce que l'intérêt du commerce se sépare bientôt des
intérêts politiques, s'il ne reçoit de ceux-ci une protection constante
et efficace."
with English.
"En 1664 une partie des droits qui se payoient dans l'intérieur
du Royaume, et à la sortie des manufactures, sut supprimée; ceux
de l'entrée sur les marchandises étrangeres furent augmentés.
Les Anglois ne virent point sans jalousie un Monarque aussi
capable d'exécuter les grandes entreprises, former un projet de
cette importance: cependant diverses considérations calmoient en
partie leurs allarmes. L'extraction de leurs manufactures jouissoit
d'une franchise absolue, et les nôtres étoient encore assujettis à
quelques droits, tant à la sortie, que dans l'intérieur de nos propres compared
Provinces. Nos Arts ne pouvoient sortir si-tôt de leur enfance,
pour atteindre à cette perfection, et à cette œconomie, déja
établies en Angleterre, et qui sont les fruits, soit du tems,
soit de la diminution du bénéfice des ouvriers. Ce peuple, alors
plus riche que nous en argent, et par une circulation mieux
établie, possédoit, outre ces avantages, une qualité de laine, qui
ne s'est encore rencontrée nulle part, quoiqu'il ne fût pas im- Wool.
possible de la remplacer. Il espéroit nous ruiner dans la con-
currence avec d'autant plus de facilité, que le chef-lieu de chacune
de ses manufactures se trouvant situé sur le bord de la mer, ou sur
English
competition.
"The
British
merchant."
Industry.
Censuses.
French translation of
des rivieres rendues navigables, et franches de péages, les expéditions
s'y font à peu de frais; au lieu que la plûpart de nos marchandises
font par terre des trajets fort longs et fort dispendieux."
"Louis XIV., pour soutenir son ouvrage, fut obligé de doubler
les droits d'entrée sur les lainages étrangers en 1667."
((
Si les secours extraordinaires que le Gouvernement accordoit
à toutes ces parties, étoient un grand présage de leurs succès; d'un
autre côté, dès que l'on fait attention à la nature des circulations
du commerce, à la difficulté qu'on éprouve à ouvrir ses canaux, ou
à les détourner, on conçoit aisément que la concurrence des Anglois
étoit capable de retarder long-tems quelquesunes de nos opérations,
même de nous dégoûter absolument de plusieurs autres."
“Les adversaires du Mercator tirerent un grand avantage de
ces deux points contre sa bonne soi, et ils acheverent de l'accabler
par le ridicule.
Ils découvrirent qu'en 1704 il avoit soutenu dans
un écrit public les maximes mêmes qu'il attaquoit. Le Mercator
se retira aprês cette blessure mortelle, et ses feuilles ne sont
aujourd'hui connues en Angleterre, que par le British Merchant, qui
y est dans une trèshaute estime.
CC
La véhémence, et si j'osois le dire, la violence du style que les
esprits mélancoliques prennent quelquefois pour de l'éloquence,
n'est pas le seul mérite de ce dernier ouvrage."
I 20
From De l'Usage de l'Arithmétique Politique, par M. Davenant, 1698.
"La richesse de toutes les nations est le fruit du travail et de
l'industrie du peuple: un bon dénombrement est donc le principe
d'où doivent partir ceux qui veulent juger de la force et du pou-
voir des Etats." .
Maximes générales sur le commerce, appliqués particulièrement au
commerce de la Grande Bretagne avec la France.
"Un commerce est désavantageux à la nation—
Wise maxims
for commer-
"1º. Quand il fait entrer des choses purement de luxe et
cial legisla d'agrément . . . tel est, selon moi, le commerce de vins.
tion. ¡
“2º. Un commerce est pernicieux qui tire de dehors des den-
rées, qui non seulement sont entièrement consommées chez nusz,
mais encore qui empêchent la consommation d'une pareille quan-
tité des nôtres-tel est l'importation des eaux-de-vie, qui empêchent
la consommation de nos esprits de malt et de mélasses...
"3º. Ce commerce est évidemment mauvais qui introduit des
'The British Merchant.
marchandises telles qu'on fabrique chez nous, surtout ce que nous
en fabriquons peut suffire à notre consommation. Et je pense que
telle est la cause du dépérissement des manufactures de soye,
qu'avec beaucoup de travail et d'industrie nous avions amenées à
leur perfection.
121
“4º. L'importation facile de marchandises dont un pays a déjà
lui-même des manufactures est pernicieuse, parce qu'elle nuit au
progrès de cette industrie dans le pays."
ant provision
of Utrecht
the Treaty of
“On lui réplique que si c'étoit là le sens de ces mots, les mar- An import-
chandises et denrées de l'Angleterre, on l'eût expliqué; ce qui n'a of the Treaty
point été fait; et dès-lors on doit entendre par ces mots en général, neglected in
les denrées et marchandises dont trafiquent les sujets de la Grande- 1860.
Bretagne. On s'appuie encore du Bill de commerce qui suit la
même interprétation; sçavoir, 'que le neuvième article du Traité
de commerce et de navigation doit s'étendre non-sculement aux mar-
chandises du crú et des manufactures de la Grande-Bretagne, mais
aussi à toutes les denrées et marchandises que les sujets de cette cou-
ronne importeront en France, ou auront droit d'y importer."
trade always
England
"Telle est la conduite des Avocats du commerce de France; France's
j'y suppléerai en donnant des états d'importation et d'exportation hurtful to
qui démontreront que le commerce de France a toujours été ruineux à (1713).
notre nation lorsqu'elle s'est relâchée des hauts droits ou des prohi-
bitions. Cependant le nouveau Traité les supprime, tandis qu'à la
lettre il augmente en France les droits et les prohibitions sur nos
marchandises d'où il faut conclure que notre exportation pour
France sera moindre qu'auparavant, mais que l'importation de
France sera au moins toujours la même; par conséquent ce com-
merce nous sera plus préjudiciable que jamais.
"Je ne puis choisir une année moins favorable à ma proposi-
tion, que l'année 1685; ce fut celle ou le Roi Jacques II. révoqua
les prohibitions établies sous le Roi Charles II. Cette matiereè
mérite l'attention de tout homme qui a quelque sentiment pour
sa patrie."
exporting
tures.
"Il est évident qu'une exportation de 400,000 livres en manu- Advantage of
factures procure de l'emploi, et une subsistance à un nombre pro- manufac-
digieux de pauvres. Dans nos campagnes, on ne voit à la charge
des Paroisses aucun ouvrier dont le travail lui procure 20 livres
par an pour l'entretien de lui, de sa femme, et de trois ou quatre
enfans. Ainsi en évaluant la subsistance dans chaque famille des
ouvriers de la campagne à 4 livres par tête; les 400,000 livres
de manufactures exportées serviront à la subsistance de cent mille
hommes. C'est un avantage considérable; mais acheté trop cher,
I
/
French translation of
si à son occasion le double d'hommes est en même tems privé de
sa subsistance.
Navigation.
I 22
"On nous dit que l'importation des marchandises étrangères cst
une dépense superflue qui ne coûte qu'à un petit nombre de personnes ;
cela ne peut s'entendre que de l'argent qui est déboursé pour ces
superfluités: mais leur usage prive un nombre infini d'hommes de
leur subsistance.
Imports
from France
deprive
Englishmen
'Pour peu que l'on considère la nature du commerce de France,
il est aisé de s'appercevoir qu'elle ne nous fournit aucune denrée
of subsist- qui ne soit en concurrence avec les nôtres.”
ence.
((
La navigation doit être considérée comme une manufacture,
et encouragée dans la même proportion que les autres, en ce qu'elle
procure la subsistance à un grand nombre de pauvres.
Plus il y
aura de marchandises fabriquées en Angleterre, plus la navigation
sera animée; par conséquent, si l'importation de 800,000 livres de
manufactures de France diminue le travail des nôtres de 400,000
livres il est évident que la navigation perdra dans la même propor-
tion. Mais n'y dût-elle rien perdre, où sera le profit de la Nation ?
Ne manquera-t-il pas toujours à nos manufacturiers pour 400,000
livres de travail qui eût également fait valoir la navigation ?" ..
["Il faut toujours séparer le gain du marchand du gain de
l'Etat, comme on l'a vu dans les maximes qui sont à la tête de cet
ouvrage."
•
•
ין.
"Je pense avoir suffisamment démontré que nos importations
de France ne peuvent diminuer il me reste à examiner si nos
exportations seront les mêmes qu'auparavant. Il est aisé de
décider que non."
Sera-ce donc un profit que de priver notre peuple des moyens
de s'occuper et de subsister? De baisser le revenu de nos terres
par l'inaction des manufactures? J'ai déjà prouvé tant de fois
cette conséquence nécessaire du commerce de France que je n'insis-
terai pas davantage. Il est clair que ce que nous consommerons
de ce pays diminuera la consommation ou de nos propres denrées,
ou de celles que nous recevons d'ailleurs en échange des nôtres, ce
qui ne nous arrive point avec la France."
"Il est donc évident que non-seulement le commerce de France
épuiseroit les trésors de la nation, mais encore qu'il priveroit notre
peuple des moyens de subsister. L'emploi des hommes est une
regle infaillible pour juger de l'avantage du commerce entre deux
nations. Si celui que l'on nous propose occupe et nourrit un
plus grand nombre d'ouvriers qu'auparavant, il est utile; s'il en
occupe et en nourrit moins, il est ruineux; c'est par ce principe
1 The passages bracketed are parts of notes by the French translator.
#
'The British Merchant."'
123
qu'il fut prohibé dans la trentième année du régne de Charles II. ;
l'acte porte qu'il diminuoit la valeur de nos manufactures et de nos
productions."
"Le million qui seroit payé chaque année pour la balance non-
seulement diminueroit la masse de notre argent, mais encore il
nourriroit en France un nombre d'hommes considérable que ce
même argent auroit fait vivre chez nous en les occupant aux mêmes
arts."
"Le prix de la main d'œuvre est à si bon marché en France, Wages lower
que malgré les droits que le Traité projetté laisseroit subsister, les (1713).
manufactures de ce pays seroient pour la plûpart à meilleur mar-
ché que les nôtres. Il est constant que nos ouvriers sont payés
plus cher et que la vie leur coute davantage : l'on en doit conclure
naturellement que nos ouvrages coutent beaucoup plus." ..
Le
nearer the
["L'on conviendra sans peine que l'ouvrier en Angleterre en
reçoit un salaire plus fort qu'en France; mais non pas que le néces-
saire physique y soit beaucoup plus cher dans les campagnes.
superflu ou l'agrément y coute un peu plus, parce que ce sont les
consommations seules qui payent; mais cela même rend l'ouvrier
plus industrieux et plus curieux de son ouvrage : il pourroit vivre a paradox
en s'appliquant moins, mais l'envie de vivre commodément redouble truth than
son travail, son étude, son génie; ce n'est qu'en faisant très-bien swiss manu-
qu'il remplit son but. Cette digression seroit la matière d'un plcas.
volume intéressant: divers Ecrivains Anglois attribuent la perfec-
tion de la main d'œuvre dans leur pays à la cherté des salaires." •]
"Pour se convaincre pleinement que les François sont en con-
currence avec nous pour les manufactures, il suffit de consulter
leurs lois."
M. Molinari's
facturer's
((
•
tr
"Il est évident que pour favoriser l'exportation des nôtres, le
Gouvernement sera obligé de donner à nos manufacturiers une
gratification équivalente." . . .
experienced
J'ai déjà fait voir qu'aux termes mêmes du Traité, plusieurs Just what is
de nos étoffes de laine sont prohibées en France; que nos réexpor- now.
tations y sont également impossibles : nous ne sommes guères
mieux traités pour l'exportation de nos pêches, de nos sucres et de
nos bleds."
·
(C
Tout homme impartial jugera par ces faits, que réellement nos
importations de France nuisent à notre exportation générale; par
conséquent à l'augmentation des profits et du capital de la nation,
à la subsistance du peuple, aux consommations et à la valeur des
terres."
((
'La dernière chose que je considère dans mes réflexions sur le
commerce est le gain du marchand. Son intérêt est tout-à-fait
124
French translation of
séparé de l'Etat qu'il peut ruiner par des importations étrangères
qui lui seront personnellement très-lucratives: dans ce cas ce
n'est que sur la nation qu'il gagne. Ainsi son intérêt particulier
ne la touche qu'autant qu'il se conforme aux vues générales: autre-
ment ce gain ne peut être regardé que comme une rente que les
laboureurs, les ouvriers, les propriétaires des terres, payent à des
gens qui les ruinent par leur pernicieuse industrie."
Our fisheries
no better
'En vain le conseil de commerce a-t-il essayé de réformer les
treated than conditions du Traité sur l'entrée de nos poissons frais, secs, ou
now.
salés: il a demandé que son entrée fût libre comme en 1664 et
sous les mêmes droits; que les tares sur les caques ou barils
fussent les mêmes que celles que l'on accordoit en Angleterre aux
François; le Roi Très-Chrétien a refusé d'y souscrire.
re
Scotch
herrings.
A sound
principle.
Le Mercator continuera-t-il de nous dire que les François
sont si ignorans dans le commerce et la navigation que ce n'est
pas tant leur concurrence qu'il faut craindre que celle des Hol-
landois? Je crois que nous devons nous garder de ces derniers,
mon intention n'est pas de plaider pour eux; mais je crois que les
François sont plus dangereux pour nous dans plusieurs branches.
(C
Je conviens que les Hollandois font un commerce considér-
able de harengs blancs qu'ils pêchent sur les côtes de l'Ecosse :
leur industrie est aussi louable que la négligence des Ecossois et
des Anglois est honteuse."
["Il est constant que la France faisoit valoir les pêches d'Ecosse
et même de l'Angleterre avant les prohibitions du commerce. Le
Mercator rapporte au nombre 52 que dans l'année 1687 il fut
exporté pour France 62,810 quintaux de morue, 5153 barils de
harengs, 489 barils de saumon sans compter les importations de
l'Irlande." •]
"Pour mettre dans un plus grand jour nos intérêts de com-
merce avec la France, il est nécessaire de connoître jusqu'où peu-
vent monter ses ventes parmi nous, et l'état de nos manufactures
dans le même genre.
·
"Je commencerai par les toiles, dont les anciens registres de la
douane nous démontrent que l'importation de France excède trois
fois la valeur de nos exportations pour elle en étoffes de laine."
["Le premier objet d'un Etat est de se maintenir dans la plus
grande indépendance possible des autres Etats; c'est-là une
première nécessité.” . . .]
Avant la prohibition du commerce de France nous ne faisions
que du papier brun; mais à la faveur des hauts droits et de la
guerre qui survint, nos papetiers commencèrent à essayer de faire
du papier blanc tant pour écrire que pour l'impression."
'The British Merchant'
125
(C
Il n'est pas possible de nous dissimuler que les François sont
nos rivaux les plus dangereux : leur navigation est prodigieuse-
ment accrue; nul peuple ne conçoit mieux aujourd'hui que la
balance du commerce est le gage de la balance du pouvoir."
“Cette vérité est d'expérience et reconnue par tous les négo-
tians; c'est par là comme je l'ai déjà remarqué que les François ont
porté un grand préjudice à nos manufactures dans le pays étranger:
déjà tous nos fabriquans en draps de pure laine d'Angleterre du prix English wool
de 7 à 9 livres la pièce se plaignent de n'en trouver aucun débouché. and French
On vient de voir que la France est une étape considérable pour
les laines; le salaire des ouvriers y. est moins cher de moitié et des
deux tiers que parmi nous pouvons-nous avoir des concurrens
plus dangereux ?
wages.
Nos manufactures de laine sont la source de nos richesses, de
notre population, de notre pouvoir, enfin de la prospérité de la
nation. Des écrivains distingués nous assurent que le revenu de
nos terres en laines monte à deux millions sterling; et ils évaluent
à six millions l'emploi qu'en font nos ouvriers dans tous les genres:
le total de la valeur de ces manufactures est par conséquent de
huit millions sterling.
(<
"Nous devons apporter les soins les plus exacts et les plus
jaloux à la conservation de ce trésor."
CC.
OPINIONS OF ECONOMISTS.
Clippings from Adam Smith's Wealth of Nations:--
opinions.
•
"If a foreign country can supply us with a commodity cheaper than Adam
we ourselves can make it, better buy it of them with some part of the Smith's
produce of our own industry, employed in a way in which we have
some advantage. . . According to the supposition, that commodity
could be purchased from foreign countries cheaper than it can be made
at home; it could therefore have been purchased with a part only of
the commodities, or, what is the same thing, with a part only of the
price of the commodities, which the industry employed by an equal
capital would have produced at home, had it been left to follow its
natural course. By means of such regulations, indeed, a particular
manufacture may sometimes be acquired sooner than it could have
been otherwise, and after a certain time may be made at home as
cheap, or cheaper, than in the foreign country. . . . The natural
advantages which one country has over another, in producing par-
ticular commodities, are sometimes so great, that it is acknowledged
by all the world to be in vain to struggle with them. As long as
the one country has those advantages, and the other wants them, it
•
126
Adam Smith's principles.
will always be more advantageous for the latter rather to buy of the
former than to make. . . . If the free importation of foreign manufac-
tures were permitted, several of the home manufactures would probably
suffer, and some of them perhaps go to ruin altogether, and a consider-
able part of the stock and industry at present employed in them
would be forced to find out some other employment. . There
seems, however, to be two cases, in which it will generally be
advantageous to lay some burden upon foreign, for the encouragement
Cases when of domestic industry. The first is, when some particular sort of
industry is necessary for the defence of the country. The defence of
Great Britain, for example, depends very much upon the number of
its sailors and shipping. The act of navigation, therefore, very
properly endeavours to give the sailors and shipping of Great
Britain the monopoly of the trade of their own country, in some
cases, by absolute prohibition, and in others, by heavy burdens upon
the shipping of foreign countries. . . . As defence, however, is of
much more importance than opulence, the act of navigation is, perhaps,
Navigation the wisest of all the commercial regulations of England. The second
domestic
industry
should be
encouraged.
laws.
case, in which it will generally be advantageous to lay some burden
upon foreign for the encouragement of domestic industry, is when
some tax is imposed at home upon the produce of the latter. In this
case, it seems reasonable that an equal tax should be imposed upon
the like produce of the former. This would not give the monopoly of
the home market to domestic industry, nor turn towards a particular
employment a greater share of the stock and labour of the country,
than what would naturally go to it. It would only hinder any part of
what would naturally go to it from being turned away by the tax into
a less natural direction, and would leave the competition between
foreign and domestic industry, after the tax, as nearly as possible upon
the same footing as before it. . . . As there are two cases in which it
will generally be advantageous to lay some burden upon foreign for
the encouragement of domestic industry, so there are two others in
which it may sometimes be a matter of deliberation, in the one, how
far it is proper to continue the free importation of certain foreign
goods; and, in the other, how far, or in what manner, it may be
proper to restore that free importation, after it has been for some time
interrupted. The case in which it may sometimes be a matter of
Retaliation. deliberation how far it is proper to continue the free importation of
certain foreign goods, is when some foreign nation restrains, by high
duties or prohibitions, the importation of some of our manufactures
into their country. . . . There may be good policy in retaliations of
this kind, when there is a probability that they will procure the
repeal of the high duties or prohibitions complained of. The recovery
of a great foreign market will generally more than compensate the
transitory inconveniency of paying dearer during a short time for
some sorts of goods. 1. The case in which it may sometimes be a
matter of deliberation, how far, or in what manner, it is proper to
restore the free importation of foreign goods, after it has been for
some time interrupted, is when particular manufactures, by means of
high duties or prohibitions upon all foreign goods which can come
7. S. Mill's principles.
127
into competition with them, have been so far extended as to employ a
great multitude of hands. Humanity may in this case require that the
freedom of trade should be restored only by slow gradations, and
with a good deal of reserve and circumspection. Were those high
duties and prohibitions taken away all at once, cheaper foreign goods
of the same kind might be poured so fast into the home market, as to
deprive all at once many thousands of our people of their ordinary
employment and means of subsistence."
Clippings from Mill's Political Economy:-
import
'Taxes on foreign trade are of two kinds-taxes on imports and
on exports. On the first aspect of the matter it would seem that both
these taxes are paid by the consumers of the commodity; that taxes
on exports consequently fall entirely on foreigners, taxes on imports Export and
wholly on the home consumer. The true state of the case, however, mert
is much more complicated. By taxing exports, we may, in certain
circumstances, produce a division of the advantage of trade more
favourable to ourselves. In some cases we may draw into our coffers,
at the expense of foreigners, not only the whole tax, but more than
the tax in other cases, we should gain exactly the tax; in others,
less than the tax. . A country cannot be expected to renounce the
power of taxing foreigners, unless foreigners will in return practise
towards itself the same forbearance. The only mode in which a
country can save itself from being a loser by the revenue duties im-
posed by other countries on its commodities, is to impose correspond-
ing revenue duties on theirs. Only it must take care that those
duties be not so high as to exceed all that remains of the advantage
of the trade, and put an end to importation altogether, causing the
article to be either produced at home, or imported from another and
a dearer market.
M
▸
Retaliation.
tection.
"Of these false theories, the most notable is the doctrine of Pro- Mill's defini-
tection to Native Industry; a phrase meaning the prohibition, or the tion of pro-
discouragement by heavy duties, of such foreign commodities as are
capable of being produced at home. . . . When the protected article
is a product of agriculture, . . . the extra price is only in part an
indemnity for waste, the remainder being a tax paid to the landlords.
A country which destroys or prevents altogether certain branches
of foreign trade, thereby annihilating a general gain to the world,
which would be shared in some proportion between itself and other
countries does, in some circumstances, draw to itself, at the expense
of foreigners, a larger share than would else belong to it of the gain
arising from that portion of its foreign trade which it suffers to subsist.
But even this it can only be enabled to do, if foreigners do not maintain
equivalent prohibitions or restrictions against its commodities. . . .
The Navigation Laws were grounded, in theory and profession, on the Navigation
necessity of keeping up a 'nursery of seamen' for the navy. On this
last subject I at once admit, that the object is worth the sacrifice;
and that a country exposed to invasion by sea, if it cannot otherwise
laws.
128
7. S. Mill's principles.
have sufficient ships and sailors of its own to secure the means of
manning on an emergency an adequate fleet, is quite right in obtaining
those means, even at an economical sacrifice in point of cheapness of
transport. When the English navigation laws were enacted, the
Dutch, from their maritime skill and their low rate of profit at home,
were able to carry for other nations, England included, at cheaper
rates than those nations could carry for themselves; which placed all
other countries at a great comparative disadvantage in obtaining experi-
enced seamen for their ships of war. The Navigation Laws, by which
this deficiency was remedied, and at the same time a blow struck
against the maritime power of a nation with which England was then
frequently engaged in hostilities, were probably, though economically
How would disadvantageous, politically expedient. But English ships and sailors
Mill have
dealt with
foreign
shipping
bounties?
can now navigate as cheaply as those of any other country; maintain-
ing at least an equal competition with the other maritime nations even
in their own trade. The ends which may once have justified Naviga-
tion Laws, require them no longer, and afforded no reason for main-
taining this invidious exception to the general rule of Free-Trade.
The only case in which, on mere principles of political economy, pro-
tecting duties can be defensible, is when they are imposed temporarily
(especially in a young and rising nation) in hopes of naturalising a
foreign industry, in itself perfectly suitable to the circumstances of the
country. The superiority of one country over another in a branch of
production, often arises only from having begun it sooner.
There may
be no inherent advantage on one part, or disadvantage on the other,
but only a present superiority of acquired skill and experience. A
country which has this skill and experience yet to acquire, may in
A general
principle
that unprac-
tical theo-
risers ignore,
indicating
where nurs-
ing by pro- other respects be better adapted to the production than those which
tection or
•
otherwise is
were earlier in the field. . . . A protecting duty, continued for a
vain and reasonable time, will sometimes be the least inconvenient mode in
where legiti-
mate.
which the nation can tax itself for the support of such an experiment.
But the protection should be confined to cases in which there is good
ground of assurance that the industry which it fosters will after a time
be able to dispense with it; nor should the domestic producers ever
be allowed to expect that it will be continued to them beyond the
time necessary for a fair trial of what they are capable of accomplish-
ing. Cost of carriage is a natural protecting duty, which Free-
Trade has no power to abrogate. . . . Such temporary protection is of
the same nature as a patent, and should be governed by similar con-
ditions. American protectionists often reason extremely ill, but
it is an injustice to them to suppose that their protectionist creed rests
upon nothing superior to an economic blunder; many of them have
been led to it much more by consideration for the higher interests of
humanity, than by purely economic reasons. They believe that a
nation all engaged in the same, or nearly the same, pursuit-a nation
all agricultural-cannot attain a high state of civilisation and culture.
And for this there is a great foundation of reason."
•
•
•
Other English economists.
129
Clippings from G. Baden-Powell's Protection and Bad Times,
1879:-
Admissions and Indications.
idea as to
does not get
"In one of Mr. Bright's speeches occurs the passage: 'The extra- Mr. Bright's
ordinary distress in the United States is almost entirely to be attri- the United
buted to their mistaken protective system; to their having misdirected States.
so much capital; to their having, on the strength of high tariffs, pro-
moted a great extension of business which could not be permanently
sustained.
Absolute free-trade will become fact when all nations
live lives fractional and not integral. And at a stage when the tribes
of the world are guided by a ruling spirit of integral selfishness, ab-
solute free-trade is not to be looked for. . . . Partial free-trade is all
that is possible under existing conditions. Unhampered produc-
tion is no less a necessity than unhampered exchange; and her own Free-trade
production is hampered by the 'private' action of foreign nations in fair play.
certain cases. .. Both of food and of raw material, the British
Empire offers an inexhaustible and cosmopolitan supply-and a supply
which shall not only suffice for its own wants, but serve with its
surplus the wants of other nations. England rises in her empire
like the town of earlier stages of civilisation. Thither men bring Free-trade
what surplus they have to dispose of-and as matters grow the town British
is enabled to help them much-to secure their access to her markets Empire.
—and to attract buyers from a distance. But there must be freedom
of access and this is nothing more than free-trade within the empire.
And there are other productive advantages in a firmly knit empire,
such as that of England. . . . The depression of 1878 has proved that
there is a large margin of unemployable labour in England. Rapid im-
provements in machinery, in chemistry, in "applied science" generally,
improve the efficiency of, but do not increase the demands for manual
labour.
•
From A System of Political Economy, by John Lancelot Shad-
well. London, 1877:-
More Light wanted.
An exag-
"The chief evil of a protective system lies in the encouragement
which it gives to the natural indolence of all men, whether farmers,
manufacturers, or shipowners, by limiting the field of the competition
to which they are exposed. . . . The treaty sounded like an alarm bell gerated
in the ears of French manufacturers, and they at once set to work impression.
to introduce machinery of the most improved type and every new
process which promised to facilitate production. We can hardly need a
better proof of the backward condition of French manufactures before
that time.
Mr. Carey
Baird's
of protection
"Mr. H. Carey Baird contends . . 'What is British Free Trade?
It is that extraordinary governmental policy which would grant privi- vindication
leges to foreigners which it withholds from its own people? It is that in United
system of legislation which would permit those foreigners to send the States.
I
130
An American view.
goods, wares, and merchandise, the products of their labour, into your
country untaxed, without contributing toward the support of your city,
town, county, state, or national Government. . . . Can such a system
be based upon any principle of right or justice, or can it be expedient
in any country or among any people?' . . . He regards it as a hard-
ship that heavily-taxed American producers should have to face a
competition of untaxed foreigners; but he seems to forget that foreign
producers have their taxes to pay, though the American Government
derives no benefit from them, and he quite omits to show that such
taxation prevents Americans from selling their produce at as cheap a
rate as foreigners. . . . Mr. Carey and other writers, both in the
United States and in the British Colonies, who adopt this line of
argument, derive some support from the well-known passage in Mill's
Political Economy. That this passage should have become popular
among Protectionists of the United States and of the British Colonies, is
natural enough, for, as Mr. Rogers says, 'The circumstances in which
they are situated exactly square with the hypothesis of Mr. Mill.'
To quote again from Mr. Rogers: Every country enjoys a natural
protection to its manufactures. When the article is cheap and bulky,
Freight and the cost of carriage is equivalent to a prohibitive duty; when it is
C
carriage.
cheap and light, the same element of cost, amounting to a considerable
percentage, is a protective impost. In the great majority of cases
this charge and similar incidents attached to a foreign commerce,
are abundantly sufficient to give a legitimate stimulus to home
production.' [No.] .
"Mr. Thornton, in another essay, has treated the same subject
in a different manner. Other writers and speakers besides Mr.
Thornton who have advocated the establishment of technical schools,
have recommended that they should be supported out of national or
local taxes, and have referred to the danger of foreign competition as
furnishing a ground for prompt action. It is here that their arguments
show a kinship to those of the Protectionists; for in both cases the
contention is that the bulk of the community should be taxed in order
that a particular class of producers may be enabled to find a market
for their goods. Yet, if there is any ground for believing that techni-
cal education is a great advantage to artisans, the proper persons to bear
the expense of it are the manufacturers who would benefit by it."
Mr. Thorn-
ton.
A strange
notion.
·
DD.
From First Principles of Political Economy, by Professor W. D.
Wilson. Philadelphia, 1877-
"A tariff for protection, if it be needed at all for that purpose,
will raise the price of the imported article for the time being. But if
it be an article which the labourers of that country can produce to
advantage, the tariff will have the effect of creating an increased
demand for labour, and thus, by raising the price of labour in all
branches of industry, it will enable the people of the country generally
A working-man's too cosmopolitan view.
131
protection
to buy the article more easily than before, even at the advanced price. Effect of
John Stuart Mill advocates protection. (Political Economy, Book v. as enunciated
chap. x. § 1.) . . . Shortly after Mr. Mill's death there appeared in by Mill.
the New York Tribune over the well-known initials G. W. S., the
following:-
66 6
his doctrine.
Presently he touched upon Free Trade, a subject which I rather His ad-
dreaded but I made haste to ask him whether he still adhered to the herence to
well-known statement in his Political Economy, which Protectionists
were in the habit of quoting in their own defence to the effect, namely,
that Free Trade was not an absolute doctrine, but a question of circum-
stances. Certainly," was his answer, "I have never affirmed anything
to the contrary. I do not presume to say that the United States may
not find protection expedient in their present state of development.
I do not even say, that if I were an American I should not be a
Protectionist." He added that he believed the best of Protectionists
held that doctrine as a temporary one, which they stood ready to
exchange or modify, when the country should have proved itself able
to compete with European manufactures.'
From What is Free Trade? by Emile Walter, a worker. New
York, 1874:-
"We will quote the words of a manufacturer to the Chamber of
Commerce at Manchester (the figures brought into his demonstration
being suppressed) :
66
ter manu-
"Formerly we exported goods; this exportation gave way to that A Manches-
thread for the manufacture of goods; later, instead of thread, we ex- facturer.
ported machinery for the making of thread; then capital for the
construction of machinery; and lastly, workmen and talent, which are
the source of capital. All these elements of labour have, one after the
other, transferred themselves to other points, where their profits were
increased, and where the means of subsistence being less difficult to
obtain, life is maintained at less cost. There are at present to be seen
in Prussia, Austria, Saxony, Switzerland, and Italy, immense manu
facturing establishments, founded entirely by English capital, worked
by English labour, and directed by English talent.'
argument.
We may here perceive that Nature, with more wisdom and fore-
sight than the narrow and rigid system of the protectionists can An over-
suppose, does not permit the concentration of labour, and the monopoly stated
of advantages, from which they draw their arguments as from an
absolute and irremediable fact. It has, by means as simple as they
are infallible, provided for dispersion, diffusion, mutual dependence,
and simultaneous progress; all of which your restrictive laws paralyse
as much as is in their power by their tendency towards the isolation of
nations. By this means they render much more decided the differences
existing in the conditions of production; they check the self-levelling
power of industry, prevent fusion of interests, neutralise the counter-
poise, and fence in each nation within its own peculiar advantages and
disadvantages."
Too cosmopolitan.
132
Coal.
Mr. W. R. Greg's earnest appeal.
DD.
From Rocks Ahead; or, The Warnings of Cassandra, by W. R.
Greg, 1874:-
Very serious Monitions.
Cost of
"If (from the several agencies to which I shall presently allude)
coal should fall to and remain at or near its former moderate price
and if in consequence our manufactures (and, as a natural result
our population) should continue to flourish and expand at their
recent rate, then our available coal-fields will be exhausted in,
say, twelve generations, and our cheap coal in less-possibly much
less-than six. If a given sum in wages, and a given sum in
plant, and a further given sum in steam-power and other contingent
expenses (very nearly the same for eight hours as for ten), have to be
spread over 8000 pieces of calico, or 8000 tons of iron, instead of
10,000, it is obvious that each piece of calico and each ton of iron will
cost proportionally more. It has been thus succinctly stated:-
"The cost of production of any article consists of two elements-
production. the wages of labour, and what are technically called "contingent
expenses "-i.e. the interest of the capital invested, both fixed and
floating, the wear and tear or depreciation of the "plant" or machinery
and buildings, and the outlay on sundry articles used in the processes,
such as coal, oil, leather, etc., whose consumption does not bear a strict
proportion to the hours of work. Now, these 'contingent expenses'—
this second main element in the cost of production-are the same, or
Advantage nearly the same, whatever be the hours of work; they are almost as
great for eight hours as for twelve, and must be reckoned rather by
the year than by the day. The proportion which these bear to mere
wages in the calculation of the cost of the articles produced, varies of
course enormously according to the nature of the trade; but probably
it is a fair average to reckon that labour constitutes two-thirds, and
"contingencies" (interest, etc.), one-third of the total. Now, the shorter
the hours worked, and consequently the smaller the quantity of goods
produced, the heavier will these fixed expenses-this unvarying and
inescapable one-third-weigh upon each pound, or yard, or hundred-
weight of those goods.
of long
hours.
•
Foreign
"The gigantic works of Messrs. Krupp, at Essen, are now to be
competition. enlarged by the expenditure of a million of money in new plant,-and
this at a time when our iron industry is under a cloud. Very recently
a Small Arms Company in the United States carried off an order for a
million sterling, in the face of both British and Belgian competition.
It is well known, too, that our chief machine-makers are principally
engaged upon Continental and American orders for machinery, all of
which will be worked by our competitors for longer hours than those
to which we are even now restricted.
"Mr. Lowthian Bell in his Presidential Address to the Iron and
Steel Institute (Journal, vol. i., 1873, p. 32), says :-
"During a journey, undertaken about five years ago, with Mr.
Mr. W. R. Greg's earnest appeal.
133
John Lancaster, through a great number of mines and ironworks in
France, Belgium, and Prussia, we came to the following conclusion:---
In many instances, the ironmasters on this side of the water were
paying at that time nearly double the wages given abroad for similar
work. ?
made by
ter
"Do not let us be deluded into deceptive security by being told that Inquiries
our manufactures are increasingly swelling in extent, and that our Messrs. Bell
exports continue even to countries which we are told are, or soon will and Lancas-
be, successful rivals. The facts are so; but properly considered they
in no way militate against my conclusions. I speak of causes in
operation, not of effects completed or as yet largely visible—of results
that must come and are slowly coming, not of faits accomplis. Our
exports continue to increase, because the demands of the world are
increasing; because even the countries which can produce more
cheaply than we do, can as yet not quite meet even their own home
requirements. . . . In this case England, in place of manufacturing for
nearly the whole world, will manufacture only for a portion of it; she
will have only her share, instead of twenty times more than her share
as hitherto; instead of having the pick of the orders of the globe, she
will have to be content with the refuse-other nations, producing
more cheaply than she can will have the preference in the market, and
will reap larger profits, which larger profits again will so stimulate
their productiveness, as infallibly ere long to edge her out altogether.
Cottons, woollens, rails, machinery, will be produced as heretofore,
and in overflowing measure; they may be even produced by English-
men, or by men of English race, as now, but they will be produced
by them, not in Lancashire, Staffordshire, Lanarkshire, or Yorkshire,
but on the banks of the Ohio, at the foot of the Alleghany, or it may
be even in more distant quarters still. . . . Commercial affairs flow
for long in old channels, run long in old ruts; but when once they Trade once
begin to leave the old ways, the new current they have chosen is not to recover.
easily arrested or turned back. . . . All that is essential is that the
transfer from the old scenes to the new should be easy and should be
timely. Labourers and artisans will grow redundant here, but America,
Australia, and New Zealand are clamouring and starving for them. . .
One evil remains, the way of escape from which I confess I do not see;
-in all emigration that is not official and either assisted or forced, it
is the energetic and capable who go, and the lazy and inefficient who
remain behind. During the long weary process, therefore, we shall
be losing the best of our artisan and agricultural population, and
keeping the worst. . . . In his memorable Budget speech of May 3,
1866, Mr. Gladstone warned. . . unless the debt be vastly diminished
while our sunshine of prosperity continues, the revenue we shall
have to raise will probably not be much smaller than at present-
£70,000,000. . . . The burden of taxation instead of being fourteen
per cent. on the income, will be nearer thirty per cent."
lost difficult
•
P
Sp
134
A challenge-
able state-
ment.
Who will
question
this?
EE.
Free-trade in
"The commerce of the world is like the tides of the ocean-
food surely? apparently disturbing, yet really regulating, the natural level.
Free trade is the friend of the so-called labouring classes, while protection is
their enemy.
22
AN AMERICAN FREE-TRADER'S ARGUMENT.
Dr. Perry, Professor of Political Economy, in his Introduction
to Political Economy, New York, 1877, states a part of his argu-
ment as below,—most convincingly if the markets of all the world
were open :-
The artisans of Great Britain will say "Yes, increase of
demand is good, but not good for us if it is demand for goods made
in France," and will ask whether the French Treaty does not
lessen the demand for what they make.
"The value of things produced depends in part upon the demand
for them, and it always must be for the advantage of all those who
contribute towards the production of any thing, that the demand for
that product be as strong as possible. The wages-class are as much
interested in having a strong demand for the products they help to
create as are the capitalist-class, since wages quite as much as profits
come out of the proceeds of the sale of those products. Whatever,
then, tends to increase the demand for material products in general,
must tend to the benefit of the wages-class. But free-trade must
increase the demand for such products, inasmuch as it opens up for
them a world-market in the place of a one-country market. Free
trade allows foreigners to bring in their products freely to exchange
against native products; foreign products cannot be bought beyond
the point at which native products are sold; money may come in as a
medium in both exchanges, as will be explained in the next chapter,
but that does not alter the fact that at bottom it is an exchange of
products other than money against products other than money; really
the only reason why foreigners bring in their products is to get the
native products in return; therefore, the demand for native products
is necessarily increased by opening the ports freely to foreign products;
and, therefore, the wages of those who labour on the native products
now in enhanced demand must be enhanced also. I invite any pro-
tectionist, who feels disposed to try his hand at it, to break in two
this simple chain of reasoning. I admit, that branches of business
artificially brought in and sustained by protective duties, in competi-
tion with countries in which nature rather than law favours the
production, may collapse in the healthful shock of free exchange,
because they are too sickly for any healthful shock of any kind. Why
An American free-trader's imperfect realisations. 135
our case.
should they not collapse? There is no loss, on the whole, in their This is not
collapsing. They are unprofitable branches of business by confession,
otherwise they would not demand to be supported out of the resources
of the community, that is to say, by taxing their neighbours in order
to continue to exist. The sooner all unprofitable branches of business
cease to be prosecuted in any country, the better for that country and
for the world. The prospect of ultimate profit under natural conditions
is sufficient inducement to try all needful experiments in new directions
of production; and the proper test of the propriety of continuing any
branch of industry beyond the period of experiment is the natural,
God-appointed test of free exchanges."
The free-trade meant is trade free to send to foreign markets
-that which has entrance thereinto. The French Treaty keeps
France shut, or will have that effect when she erects enough
of manufactories (I do not speak of the products of land), and it
tends to stifle our not "artificially brought in" industries.
to French
"As an illustration of the effect of free-trade in increasing the Doubtful
demand for native products, I will give a few figures.
Under the compliment
commercial treaty with England, comparing 1860 with 1868, the Treaty.
volume of French commerce increased over 37 per cent. exports to
England, over 155 per cent. of butter, more than twenty-fold; of
eggs, nearly sixfold; of wines, fivefold; of silks, woollens, and cottons,
nearly threefold. Whose labour produced these enormously increased
exports? Whose wages were ever reduced by an enlarged demand for
the products of labour?"
·
"Whose labour? whose wages ?" the Professor asks.
course, the Frenchmen's."
cr
८८
Why, of
"What has become famous under the name of 'Protection' is
nothing in the world but a shrewd scheme to raise certain prices by
means of certain taxes."
protection.
What we advocate is not what he accuses--the old-fashioned Legitimate
protection," and is not a "scheme to raise prices," but one for
retaining our industries, which the President of the Board of
Trade acknowledges there is on the part of the French an attempt
to bribe away.
i
136 A sound view as to rewarding Inventors.
FF.
Proposals of a Council of Trade, by William Paterson, founder
of the Bank of England, often attributed to Law of Lauriston.
(Edinburgh, 12mo, 1701, first ed. pp. 120):-
A one per
cent.
into Scot-
land pro-
posed
"Article 1st. That all manner of duties or impositions on growths,
on imports products, goods, or other merchandises to be exported from any the
ports or places of this kingdom, may be taken off, excepting one per
cent. of the value, by the name of entry-money only. 2. That all such
growths and products of other countries as are and shall be proper to
be manufactured or meliorated in this kingdom, may be freely im-
ported without paying any duty excepting only one per cent. of the
value by the name of entry-money. 3. That the present duties and
impositions on all manner of foreign liquors and commodities not fit
to be manufactured or meliorated in this kingdom, among which sugar
and tobacco may be reckoned, may be doubled; but in order to lay
the same as much as possible by way of excise or upon the consump-
tion, and as little upon the merchant and navigation as may be, that
there may be a term of twelve months at least given to the merchants
or other importers, who shall give security for the payment of the
duty or the exportation thereof within the limited term, always allow-
ing and paying one per cent. of the value by the name of entry-money.
5. That, excepting only the aforesaid duties, the trade, naviga-
tion, shipping, and fishings of this nation may be discharged of and be
for ever free of all manner of duties and impositions due and payable,
to His Majesty, his heirs and successors, or any other whatsoever:
provided always, that the council of trade may from time to time.
settle, regulate, and appoint all such rates as ships or vessels shall pay
for lighthouses and pilotage, and likewise appoint and settle all such
rates as shall be paid for wharfage or other shore dues in the several
Rewarding places of this kingdom. . . . It is true we find it the custom of not a
of inventors. few trading nations, as an encouragement to trade and industry, to
grant monopolies of any new invention, or to those concerned in the
first introducing of manufactures to a country; but in this we may
likewise observe that these monopolies are commonly granted but for
fourteen, fifteen, or hardly exceeding twenty years; and although this
sort of young monopolies, as has been said, be not so pernicious as
others, and that this be indeed one way of learning of arts unto and
of begetting industry in a nation, yet surely it is so far from being the
best, that it were often, nay, for the most part, much better for a prince
or state to give double or treble the sum gained by the monopoly as a
reward to the inventor or introducer; since it not only, for the time
at least, possibly hinders four or five, but it may be eight or ten, times.
the people from going into the matter, but not seldom proves so bad
a preparative as in a great measure to balk the further growth and
progress thereof, even when the monopoly is at an end.”
137
GG.
THE TREATY OF COMMERCE BETWEEN ENGLAND
AND FRANCE.
THE ENGLISH TEXT.
Her Majesty the Queen of the United Kingdom of Great Britain
and Ireland, and His Majesty the Emperor of the French, being
equally animated with the desire to draw closer the ties of friendship
which unite their two peoples, and wishing to improve and extend the
relations of commerce between their respective dominions, have
resolved to conclude a Treaty for that purpose, and have named as
their Plenipotentiaries, that is to say:
Her Majesty the Queen of the United Kingdom of Great Britain
and Ireland, the Most Honourable Henry Richard Charles Earl
Cowley, Viscount Dangan, Baron Cowley, a peer of the United
Kingdom, a member of Her Britannic Majesty's Privy Council, Knight
Grand Cross of the Most Honourable Order of the Bath, Her Majesty's
Ambassador Extraordinary and Plenipotentiary to the Emperor of the
French; and Richard Cobden, Esquire, a member of the British
Parliament;
His Majesty the Emperor of the French; M. Baroche, Grand
Cross of the Imperial Order of the Legion of Honour, etc., a member
of his Privy Council, President of his Council of State, provisionally
charged with the Department of Foreign Affairs; and M. Rouher,
Grand Officer of the Imperial Order of the Legion of Honour, etc.,
Senator, his Minister aud Secretary of State for the Department of
Agriculture, Commerce, and Public Works;
Who, after having communicated to each other their respective
full powers, found in good and due form, have agreed upon and con-
cluded the following articles :-
ARTICLE I. His Majesty the Emperor of the French engages that
on the following articles of British production and manufacture, im-
ported from the United Kingdom into France, the duties shall in no
case exceed 30 per cent. ad valorem, the two additional decimes in-
cluded.
The articles are as follows:-Refined sugar; turmeric in powder;
rock crystal worked; iron forged in lumps or prisms; brass wire
(copper alloyed with zinc), polished or unpolished, of every descrip-
tion; chemical productions, enumerated or non-enumerated; extracts
of dye-woods; garancine; common soap of every description,
and perfumed soap; stoneware and earthenware, fine and common;
china and porcelain ware; glass, crystal, mirrors, and plate-glass;
cotton yarn; worsted and woollen yarn of every description; yarns
of flax and hemp; yarns of hair, enumerated or non-enumerated;
cotton manufactures; horsehair manufactures, enumerated or non-
enumerated; worsted and woollen manufactures, enumerated or non-
enumerated; cloth list; manufactures of hair; silk manufactures;
138
The Treaty of Commerce
manufactures of waste and floss-silk; manufactures of bark and all
other vegetable fibres, enumerated or non-enumerated; manufactures
of flax and hemp; mixed manufactures of every description; hosiery ;
haberdashery and small wares; manufactures of caoutchouc and gutta-
percha, pure or mixed; articles of clothing, wholly or in part made
up; prepared skins; articles of every sort manufactured from leather
or skins, included or not under the denomination of smallwares, fine or
common; plated articles of every description; cutlery; metal wares,
whether enumerated or not; pig and cast-iron of every description,
without distinction or weight; bar and wrought iron, with the excep-
tion of the kinds specified in Article XVII.; steel; machinery, tools,
and mechanical instruments of every description; carriages on springs,
lined and painted; cabinet ware, carved work, and turnery of every
description; worked ivory and wood; brandies and spirits, including
those not distilled from wine, cherries, molasses, or rice; ships and
boats. With respect to refined sugar and chemical productions, of
which salt is the basis, the excise or inland duties shall be added to
the amount of the above specified duties.
ARTICLE II. His Imperial Majesty engages to reduce the import
duties in France on British coal and coke to the amount of fifteen
centimes for the hundred kilogrammes, with the addition of two
decimes.
His Majesty the Emperor also engages, within four years from the
date of the ratification of the present treaty, to establish upon the
importation of coal and coke by land and by sea, a uniform duty,
which shall not exceed that which is fixed by the preceding
paragraph.
ARTICLE III. It is understood that the rates of duty mentioned in
the preceding articles are independent of the differential duties in favour
of French shipping, with which duties they shall not interfere.
ARTICLE IV. The duties ad valorem stipulated in the present
Treaty shall be calculated on the value at the place of production,
or fabrication of the object imported, with the addition of the cost of
transport, insurance, and commission necessary for the importation
into France as far as the port of discharge.
For the levying of these duties, the importer shall make a written
declaration at the Custom-house, stating the value and description of
the goods imported. If the Custom-house authorities shall be of
opinion that the declared value is insufficient, they shall be at liberty
to take the goods on paying to the importer the price declared, with
an addition of 5 per cent.
This payment, together with the restitution of any duty which
may have been levied upon such goods, shall be made within the
fifteen days following the declaration.
ARTICLE V. Her Britannic Majesty engages to recommend to
Parliament to enable her to abolish the duties of importation on the
with France.
139
following articles :-Sulphuric acid and other mineral acids; agates
and cornelians, set; lucifers of every description; percussion caps;
arms of every description; jewels, set; toys; corks; brocade of gold
and silver; embroideries and needle-work of every description; brass
and bronze manufactures and bronzed metals; canes, walking canes or
sticks, umbrella or parasol sticks, mounted, painted, or otherwise
ornamented; hats, of whatever substance they may be made; gloves,
stockings, socks, and other articles of cotton or linen, wholly or in part
made up; leather manufactures; lace manufactured of cotton, wool,
silk, or linen; manufactures of iron and steel; machinery and
mechanical instruments; tools and other instruments; cutlery and
other articles of steel, iron, or cast-iron; fancy ornaments of steel and
iron; articles covered with copper by galvanic process; millinery and
artificial flowers; raw fruits; gloves and other leather articles of
clothing; manufactures of caoutchouc and gutta-percha; oils; musical
instruments; worsted and woollen shawls, plain, printed, or patterned;
coverlids; woollen gloves, and other worsted and woollen manufac-
tures not enumerated; handkerchiefs, and other manufactures not
enumerated, of linen and hemp; perfumery; cabinet ware, carved
work, and turnery of every description; clocks, watches, and opera-
glasses; manufactures of lead, enumerated or not enumerated; feathers,
dressed or not; goat's, and other hair manufactures; china and
porcelain ware; stone and earthenware; grapes; sulphate of quinine ;
salts of morphine; manufactures of silk, or of silk mixed with any other
materials, of whatever description they may be; articles not enume-
rated in the tariff, now paying an ad valorem duty of 10 per cent. ;
subject, however, to such measures of precaution as the protection of
the public revenue may require, against the introduction of materials
liable to Custom or Excise duties, in the composition of articles
admitted duty free in virtue of the present paragraph.
ARTICLE VI. Her Britannic Majesty engages also to propose to
Parliament that the duties on the importation of French wine be at
once reduced to a rate not exceeding three shillings a gallon, and that
from the 1st April 1861 the duties on importation shall be regulated
as follows:-1. On wine containing less than fifteen degrees of proof
spirit verified by Sykes's hydrometer, the duty shall not exceed one
shilling a gallon. 2. On wine containing from fifteen to twenty-six
degrees, the duty shall not exceed one shilling and sixpence a gallon.
3. On wine containing from twenty-six to forty degrees, the duty
shall not exceed two shillings a gallon. 4. On wine in bottles, the
duty shall not exceed two shillings a gallon. 5. Wine shall not be
imported at any other ports than those which shall be named for that
purpose before the present treaty shall come into force; Her Britannic
Majesty reserving to herself the right of substituting other ports for
those which shall have been originally named, or of increasing the
number of them. The duty fixed upon the importation of wine at
ports other than those named, shall be two shillings a gallon. 6. Her
Britannic Majesty reserves to herself the power, notwithstanding the
provisions of this article, to fix the maximum amount of proof spirit
P
140
The Treaty of Commerce
which may be contained in liquor declared as wine, without, however,
the maximum being lower than thirty-seven degrees.
ARTICLE VII. Her Britannic Majesty promises to recommend to
Parliament to admit into the United Kingdom merchandise imported.
from France, at a rate of duty equal to the excise duty which is or
shall be imposed upon articles of the same description in the United
Kingdom. At the same time, the duty chargeable upon the importa-
tion of such merchandise may be augmented by such a sum as shall be
equivalent for the expenses which the system of excise may entail
upon the British producer.
ARTICLE VIII. In accordance with the preceding article, her
Britannic Majesty undertakes to recommend to Parliament the admis-
sion into the United Kingdom of brandies and spirits imported from
France, at a duty exactly equal to the excise duty levied upon home-
made spirits, with the addition of a surtax of 2d. a gallon, which will
make the actual duty payable on French brandies and spirits 8s. 2d. the
gallon.
Her Britannic Majesty also undertakes to recommend to Parliament
the admission of rum and tafia imported from the French colonies, at
the same duty which is or shall be levied on these same articles imported
from the British colonies.
Her Britannic Majesty undertakes to recommend to Parliament the
admission of paper-hangings imported from France, at a duty equal to
the excise tax, that is to say, at fourteen shillings per hundredweight;
and cardboard of the same origin at a duty which shall not exceed
fifteen shillings per hundredweight.
Her Britannic Majesty further undertakes to recommend to Parlia-
ment the admission of gold and silver plate imported from France, at
a duty equal to the stamp or excise duty which is charged on British
gold and silver plate.
ARTICLE IX. It is understood between the two high contracting
Powers, that if one of them thinks it necessary to establish an excise
tax or inland duty upon any article of home production or manufacture
which is comprised among the preceding enumerated articles, the
foreign imported article of the same description may be immediately
liable to an equivalent duty on importation.
TA
It is equally understood between the high contracting Powers, that
in case the British Government should deem it necessary to increase
excise duties levied upon home-made spirits, the duties on the im-
portation of wines may be modified in the following manner :—
For every increase of a shilling per gallon of spirits on the excise
duty, there may be, on wines which pay one shilling and sixpence duty,
an augmentation not exceeding one penny halfpenny per gallon; and
on wines which pay two shillings, an augmentation not exceeding two
pence halfpenny per gallon.
ARTICLE X. The two high contracting Parties reserve to them-
selves the power of levying upon all articles mentioned in the present
Treaty, or upon any other article, landing or shipping dues, in order
with France.
141
to pay the expenses of all necessary establishments at the ports of
importation and exportation.
But in all that relates to local treatment, the dues and charges in
the ports, basins, docks, roadsteads, harbours, and rivers of the two
countries, the privileges, favours, or advantages which are or shall be
granted to national vessels generally, or to the goods imported or
exported in them, shall be equally granted to the vessels of the other
country, and to the goods imported or exported in them.
ARTICLE XI. The two high contracting Powers engage not to pro-
hibit the exportation of coal, and to levy no duty upon such exportation.
ARTICLE XII. The subjects of one of the two high contracting
Powers shall, in the dominions of the other, enjoy the same protection
as native subjects in regard to the rights of property in trade-marks
and in patterns of every description.
ARTICLE XIII. The ad valorem duties established within the limits
fixed by the preceding Articles shall be converted into specific duties
by a Supplementary Convention, which shall be concluded before the
1st of July 1860. The medium prices during the six months preced-
ing the date of the present Treaty shall be taken as the basis for this
conversion.
Duties shall, however, be levied in conformity with the basis above
established-1. In the event of this Supplementary Convention not
having come into force before the expiration of the period fixed for the
execution by France of the present Treaty; 2. Upon those articles the
specific duties on which shall not have been settled by common consent.
ARTICLE XIV. The present Treaty shall be binding for the United
Kingdom of Great Britain and Ireland, so soon as the necessary legisla-
tive sanction shall have been given by Parliament, with the reserve
made in Article VI. respecting wines.
Further, her Britannic Majesty reserves to herself the power of
retaining, upon special grounds, and by way of exception, during a
period not exceeding two years, dating from the 1st of April 1860,
half of the duties on those articles, the free admission of which is
stipulated by the present Treaty.
This reserve, however, does not apply to articles of silk manufacture.
ARTICLE XV.The engagements contracted by His Majesty the
Emperor of the French shall be fulfilled, and the tariffs previously
indicated as payable on British goods and manufactures shall be
applied, within the following periods:-1. For coal and coke, from the
1st July 1860. 2. For bar and pig iron, and for steel of the kinds
which are not subject to prohibition, from the 1st October 1860. 3.
For worked metals, machines, tools, and mechanical instruments of all
sorts, within a period which shall not exceed the 31st December 1860.
4. For yarns and manufactures in flax and hemp, from the 1st June
1861. 5. And of all other articles from the 1st October 1861.
ARTICLE XVI. His Majesty the Emperor of the French engages
that the ad valorem duties pavable on the importation into France of
The French Treaty.
merchandise of British production and manufacture, shall not exceed a
maximum of 25 per cent. from the 1st of October 1864.
142
ARTICLE XVII. It is understood between the two high contracting
Powers, as an element of the conversion of the ad valorem duties into
specific duties, that for the kinds of bar iron which are at present sub-
jected on importation into France to a duty of ten francs, not including
the two additional decimes, the duty shall be seven francs on every
hundred kilogrammes until the 1st of October 1864, and six francs
from that period, including in both cases the two additional decimes.
ARTICLE XVIII. The arrangements of the present Treaty of Com-
merce are applicable to Algeria, both for the exportation of her produce,
and for the importation of British goods.
ARTICLE XIX. Each of the two high contracting Powers engages to
confer on the other any favour, privilege, or reduction in the tariff of
duties of importation on the articles mentioned in the present Treaty,
which the said Powers may concede to any third Power. They further
engage not to enforce one against the other any prohibition of importa-
tion or exportation, which shall not at the same time be applicable to
all other nations.
ARTICLE XX. The present Treaty shall not be valid unless her
Britannic Majesty shall be authorised by the assent of her Parliament
to execute the engagements contracted by her in the Articles of the
present Treaty.
ARTICLE XXI. The present Treaty shall remain in force for the
space of ten years, to date from the day of the exchange of ratifications;
and in case neither of the high contracting Powers shall have notified
to the other, twelve months before the expiration of the said period of
ten years, the intention to put an end to its operation, the Treaty shall
continue in force for another year, and so on from year to year, until
the expiration of a year, counting from the day on which one or other
of the high contracting Powers shall have announced its intention to
put an end to it.
The high contracting Powers reserve to themselves the right to
introduce, by common consent, into this Treaty any modification which
is not opposed to its spirit and principles, and the utility of which shall
have been shown by experience.
ARTICLE XXII. The present Treaty shall be ratified, and the
ratifications shall be exchanged at Paris within the period of fifteen
days, or sooner if possible.
In faith whereof, the respective Plenipotentiaries have signed it,
and affixed thereto the seal of their arms.
Done in duplicate at Paris, the twenty-third day of January, in
the year of our Lord one thousand eight hundred and sixty.
(L.S.) COWLEY.
(L.S.) RICHARD COBDEN.
(L.S.) V. BAROCHE.
(L.S.) F. ROUHER.
Lord Cowley's observations on the Treaty.
143
In the official correspondence published along with the Treaty
occur the following significant passages:-
Lord Cowley wrote:-"Nothing would tend more to allay the
irritation which unfortunately prevailed on both sides the Channel;"
and Earl Russell :-" They attach a high social and political value to
the conclusion of a commercial treaty with France."
''
Are not the following words suggestive ?-
"The merits," says Lord Cowley, "of whatever may be affected
will rest solely with him (Mr. Cobden), and it is but fair that he should
have the satisfaction of putting his name to the final arrangement. I
could feel no jealousy on such an occasion.'
""
The following ought to be read in connection. Extracts from
"Papers on Sugar Industries, C. 2392, 1879:"-
FRENCH TREATY OF JULY 23, 1873.
"It is therefore understood that, in conformity with the stipulations of Article
XIX. of the Treaty of Commerce, concluded on the 23d January 1860, and of
Article V. of the Supplementary Convention of the 16th November of the same
year, each of the High Contracting Parties engages to give the other, immediately
and unconditionally, the benefit of every favour or immunity, every privilege or
reduction of tariff in regard to the importation of merchandise, whether mentioned
or not in the Treaty and Conventions of 1860, which have been or may be con-
ceded by one of the High Contracting Parties to any foreign nation whatsoever,
whether within or beyond Europe."
AUSTRIAN TREATY OF DECEMBER 5, 1876.
"Article 2.—The produce and manufactures of, as well as all goods coming from,
Austria-Hungary, which are imported into the territories and possessions, includ-
ing the colonies and foreign possessions, of Her Britannic Majesty, and the pro-
duce and manufactures of, as well as all goods coming from, British possessions,
which are imported into the Austro-Hungarian Monarchy, whether intended
for consumption, warehousing, re-exportation, or transit, shall therein, during the
continuance of this Treaty, be treated in the same manner as, and in particular
shall be subjected to no higher or other duties than, the produce and goods of
any third country the most favoured in this respect.
"No other or higher duties shall be levied in the Austro-Hungarian Monarchy
on the exportation of any goods to the territories and possessions, including the
colonies and foreign possessions, of Her Britannic Majesty, or in the territories
and possessions, including the colonies and foreign possessions, of Her Britannic
Majesty, on the exportation of any goods to the Austro-Hungarian Monarchy,
than on the exportation of the like goods to any third country the most favoured
in this respect.
"The two High Contracting Parties likewise guarantee to each other treat-
ment on the footing of the most favoured third country in regard to the transit
of goods through the territory of the one from and to the territory of the other.
"Article 3.-Every reduction in the tariff of import and export duties, as well
as every favour or immunity that one of the Contracting Parties grants to the
subjects and commerce of a third Power, shall be participated in simultaneously
and unconditionally by the other.
"Article 5.-Neither of the High Contracting Parties shall establish a pro-
hibition of importation, exportation, or transit against the other which shall not,
under like circumstances, be applicable to the third country most favoured in this
respect."
144
THE FRENCH TARIFF OF 1664.
"The Tarif settled by the French King and Council, September 18,
1664, shewing the Duties agreed to be paid upon the several sorts of
Merchandise, Goods, Wares, etc., being the Growth, Product, and Manu-
factures of great Britain, which should be imported from England into
France.' "" 1
A
Allom of all sorts, per cent.,
B
Frizes, containing 18 ells per
piece,
Frizes of Bristol, containing 18
ells,
•
Bays single, the pieces of 25 ells, 5 liv. Frizes, called Cottons, sold by the
Ditto double of the great Cock,
goad, 100 goads making 125
ells,
containing 50 ells,
12 liv.
Boots new of all sorts, per dozen,
Boots old, per dozen,
Butter, per hundred,
Bricks, per thousand,
Bells or Bell Mettle, per cent.,
Blankets, Quilts, and Rugs made
of flocks or hair, per doz.,
Brass new wrought, per cent.,
Ditto old in pieces, per cent.,
Ditto or Copper old, per cent.,.
с
•
•
•
•
•
Copper or Brass unwrought, per
cent.,
Copperas white, per cent.,
Copperas or Vitriol green, per
cent.,
•
Cheese, per cent.,
Codfish green the hundred in num-
ber imported by Normandy,
Codfish the thousand in number,
8 liv.
Calve-skins in the hair, per doz.,
Calve-skins tanned, per doz.,
Ditto curried, per doz.,
Coney-wool or Goats'-wool, per
cent.,
Coney skins raw, per cent.,
Caps made of woollen yarn, per
cent.,
3 livres.
•
НН.
D
Dog-skins per hundred in num-
ber,
F
Flocks for beds, per cent.,
Fustians of all sorts, containing
12 ells,
15 liv.
6 liv.
10 sols
12 sols
8 sols
40 sols
24 sols
5 liv.
10 sols
20 sols
50 sols
20 sols
12 sols
15 sols
3 liv.
10 sols
4 sols
15 sols
30 sols
50 sols
40 sols
8 liv.
Frizes, called Frisons by the French,
containing 13 ells the piece,
Ditto, called by the French Fer-
lins, containing 7 or 9 ells the
pieces,
•
H
Horses under the value of 30
crowns,
Horses above 30 crowns,
Harnesses of leather for horses,
lined with velvet,
ad
Ditto plain leather, per cent.,
Harts or Bucks Horns per 100,
Horn Plates, or pieces for Combs
and Spectacles, per cent.,
Herrings red or dried, the last
containing 12 barrels, each con-
taining 1000,
Ditto pickled, per last, containing
12 barrels,
24 sols Hose made of Cotton, per doz.,
Ditto of Silk, per pair,
Ditto large turning down, to pay
in proportion.
Two pair of Stirrup Hose to pay
as one.
•
3 liv.
Flocks, or hair of oxen, goats,
dogs, white or grey, per cent., 15 sols
Fish, salted or in pickle, the last
containing 12 barrels,
7 liv. 10 sols
G
Glass bottles, per dozen,
Glew of all sorts, per cent.,
Grindstones small, per doz.,
Ditto under 4 foot, per doz.,
Ditto above 4 foot, each,.
20 sols
•
30 sols
10 sols
2 sols
18 sols
30 sols
4 liv.
16 sols
3 liv.
20 liv.
10 liv.
valorem.
6 liv.
5 sols
15 sols
15 liv.
16 liv.
40 sols
15 sols
13 sols
35 sols
1 Glasgow, re-printed by Hugh Brown, and are to be sold at his shop above
the Cross.
MDCCXIII.
1
50 sols
Hose made of Thread, per doz.,
Ditto to use in boots made of
Woolen Yarn, per doz., 3 liv. 12 sols
Ditto made of Worsted Yarn,
long and short, per doz.,
Hats of Straw, per doz.,
Hats of Castor, per doz.,
Ditto half Castor, per doz.,
Ditto Vigogne, per doz.,
Ditto Felts of all sorts of Wool
and Hairs and make, per doz., 6 liv.
French Tariff in 1664.
I
Iron wrought as Nails, and other
such like manufacture,
per
•
•
cent.,
Iron wrought black, of several
32 sols
other sorts, per cent.,
Iron wrought bright is mentioned in the
article called in French Merceries.
Lead, per cent.,
Leather Jumps for the heels, per
cent.,
Laces Gimps made of Silk, per
pound,
Lead white, per cent.,
Ditto red, per cent.,
·
K
Kersies, called by the French Molletons,
or Double Kersies friez'd or plain,
containing 26 ells per piece, 6 livres.
L
D
Babies.
Brushes.
Bandeliers.
Combs of Wood or Box.
Counters.
Cushions for Pins.
Crossbows.
36 sols
3 sols
36 liv.
18 liv.
12 liv.
•
Daggers.
Gut-strings.
10 sols
These several sorts of Wares are men-
tioned in the letter M of the said
Tarif, which in French are called
Merceries, and are to pay per hundred-
weight, 4 liv.
12 sols Pencils.
Amber yellow in Paternoster strings or
other Works.
4 liv.
15 sols
20 sols
Beads for Paternoster.
Beads of Jet, smooth or rough.
Buttons of Thread, Wool, Yarn, Hair
or Glass.
Boxes of Wood, and with Iron, plain or
painted.
Cards to play.
Carpets of Linnen painted or such like.
Cabinets of small value from Germany.
Drums.
Girdles of Thread or Yearn.
Girts and Girt-wed.
Hatbands without Gold or Silver.
N
40 sols Nails, and such other Iron Manu-
facture, per cent.,
Hour Glasses.
Handles for all Blades.
Inkhorns.
Knives of all sorts.
Leather of several sorts with Paint.
Looking-Glass frames of Wood.
Moulds for Buttons.
Nails for Saidlers.
Nails for Shoemakers.
Needles.
Purses of Leather, Wool, or Yarn.
Penknives.
K
Quils to make Pens, etc.
Rackets.
Rubens.
Scizers of all sorts.
Spurs.
Stirrups.
Sword-blades.
Sword-hilts.
Spoons of Box or Wood.
Thimbles.
Whistles.
Ox or Cow hides in the Hair, per
cent.,
•
Ditto tanned, per doz.,
Ditto dried, each,
Ditto green or salted, each,
Oker red, white, yellow, or black,
per barrel,
•
·
P
Paper painted of several sorts,
per cent.,
Pewter or Tin unwrought fine or
course, per cent., .
Ditto wrought, per cent.,
S
Salmon salted or in pickle, the 6
or 8 barrels,
Steel unwrought, per cent.,
Sea Coals, per barrel,
Sealing-wax, per cent.,
Soap bard, per cent.,
•
Ditto soft, black, green, or liquid,
per cent.,
Serges, containing 20 ells,
Ditto called Cloth Serges 13 to
15 ells,
145
12 sols
50 sols
12 liv.
5 sols
10 sols
10 sols
40 sols
50 sols
5 liv.
6 liv.
28 sols
S sols
6 liv.
3 liv. 10 sols
2 liv.
6 liv.
10 liv,
1
Inspection.
Compensa-
tions.
Enlarging of
ships.
French Tariff in 1664.
20 sols
2 sols
14 sols
146
Shoes new, per doz.,
Ditto old, per doz.,
Starch, per cent.,
Socks made of Wollen Yarn, per
doz.,
·
T
Teezles for Clothiers, containing
150 1.,
Tallow of all sorts, per cent.,
15 sols
20 sols
30 sols
I
I
For gross tonnage—
W
Woolen Cloth of all colours, con-
taining 25 ells the pieces,
Ditto called Dozens, not exceed-
ing the value of 8 liv. per ell,
the pieces containing 9 or 10
ells,
•
40 liv.
4 liv. 10 sols
Ditto double pieces to pay in pro-
portion, and a higher value to
pay as fine English Cloth.
ORIGINAL TEXT OF MERCANTILE MARINE BILL.
(Translation.)
ARTICLE 1. The right of free pilotage is granted to all sailing
vessels not measuring over 80 tons, and to steamers whose measure-
ment does not exceed 100 tons, whenever they run regularly between
port and port, and habitually frequent the entrances to rivers.
Nevertheless, at the request of the Chamber of Commerce, and
after an inquiry in the usual form has been made, the public adminis-
trative regulations shall determine the modifications of rules which
may be considered necessary in the interest of navigation.
Art. 2. For foreign-going vessels the visit of inspection prescribed
by Article 225 of the Commercial Code for a fresh cargo loaded in
France shall not be obligatory unless six months have elapsed since -
the last inspection, except the vessel may have sustained damage.
Art. 3. For the official documents or procès-verbaux showing the
changes of owners of the ship, either totally or partially, a fixed
charge shall be made for registration of 5 fr. Article 5, No. 2, of
the Law 28th February 1872, is repealed so far as it is contrary to
the present provision.
Art. 4. To compensate shipbuilders for the charges fixed by the
Custom-house Tariff, the following allowances shall be made to them :—
For iron or steel vessels, 60 fr.
For wooden vessels of 200 tons or more, 20 fr.
For wooden vessels of less than 200 tons, 10 fr.
For composite vessels, 40 fr.
For engines placed on board steamers, and for auxiliary
apparatus, such as steam-pumps, donkey-engines, winches,
ventilators worked by machinery, also boilers and con-
necting pipes, 12 fr. per 100 kilog.
Ships planked with timber, having beams and ribs of iron or steel,
are to be considered as composite vessels.
Art. 5. Every change in a ship by which an increase in measure-
ment is gained shall give right to a bounty, based on the above Tariff
according to the increase of tonnage gained.
Text of Mercantile Marine Bill.
147
A similar bounty shall be granted for driving engines and auxiliary Engines, etc.
apparatus placed on board after completion of the ship.
On change of boilers, the owner shall be allowed a compensation
allowance of 8 fr. per 100 kilog. on new boilers without the tubes, if
of French make.
Art. 6. The fees granted by Articles 4 and 5 shall be paid on
delivery of the ship's register by the Receiver of Customs at the port
nearest to the place of construction.
Art. 7. The regulation of admission in bond fixed by Article 1 of
the Law of the 19th May 1866, and by Article 2 of the Law of the
17th May 1879, is abolished.
the stocks.
Art. 8. Shipbuilders shall receive allowances for vessels on the Vessels on
stocks at the time when the present laws shall come into force, as
stipulated in Articles 4 and 5, after deducting the amount of Customs
dues fixed by the Conventional Tariff on foreign inports which may
have been entered in bond for shipbuilding purposes.
Art. 9. As compensation for charges imposed on the mercantile
navy for recruiting and the military navy, a navigation bounty shall
be granted, during ten years from the date of publication of this law,
to all French vessels, sailing or steam.
This bounty is applicable only to foreign-going vessels.
It is fixed at 1 fr. 50 c. per register ton and per 1000 miles run
for vessels fresh off the stocks, and decreases annually by-
0.075 fr. for wooden vessels;
0.075 fr. for composite vessels;
0.05 fr. for iron vessels.
The bounty is increased by 15 per cent. for steamers built in Ships built
France according to plans approved of by the Marine Department.
on State
plans.
The number of miles run is calculated according to the distance
from the point of departure to the point of arrival, measured on a
direct maritime line.
In case of war, merchant-ships can be requisitioned by the State. War.
Vessels used for fishing, those belonging to subsidised lines, and
yachts, are excepted from receiving a bounty.
Twenty per cent. from the bounty granted by the present law shall
be deducted and paid into the "Caisse des Invalides" of the marine,
so as to increase the retiring pensions of registered seamen.
Art. 10. Every master of a vessel receiving a bounty fixed by Mails.
Article 9 of the present law shall be obliged to carry, free of charge,
mails put under his charge by the Post-Office authorities, or which he
will deliver to their administration as prescribed in the Consular
Decrees of the 19th Germinal, year X.
If a Post-Office agent is deputed to accompany the despatches, he
shall also be conveyed free of charge.
Art. 11. A regulation of public administration, containing a special
statement of the distances between ports, shall fix the system on which
this law shall be applied.
148
Extract from Act 22 Geo. II.
Danger from
I may be pardoned for adding a word to call attention to the
seamen being facility (so skilfully turned to account in the preceding) which
so many
aliens.
the great number of aliens whom we employ for British seamen
presents, for a most unpleasant and probably a contemplated result,
viz., the transference of the finest British ships and a large part of
their crews to France. The advantages assured her by treaty,
proving after twenty years' experience insufficient to give her a
large mercantile marine, are, in consistency with a well-defined
policy, to be supplemented in a way so thoroughgoing that a
government disposed to follow good antecedents must seriously
consider, What now on our side?
There are two recent changes in the manner of conducting
business which affect the position of our country and demand
attention, in connection with the subjects we have been treating
of :—
New modes
of doing
business.'
Sales in ad-
vance of pro-
1. Whereas in old times commodities used to be made and
duction. thereafter sold, it is now usual to sell and thereafter make. Con-
sequently the fear of combinations and strikes (which may be
reckoned a new feature) causes a difficulty in the way of entering
into contracts. These do not embarrass foreign manufacturers to
nearly the same extent as ours. In the Collections of the Acts of
Parliament relating to the Linen Manufacture, Edinburgh, 1751,
the Act Geo. II. is reprinted. It contains the following embodi-
ment of a principle which it may be expedient, for the sake of all
concerned, to give due effect to :—
Old way of
securing per-
contracts.
"§ 9. And, for the better regulating of the journeymen and other
formance of persons employed as manufacturers or workers in the manufacture of
felts or hats, and in the woollen, linen, fustian, cotton, iron, mohair,
furr, hemp, flax, or silk manufactures, or any manufactures made up of
wool, furr, hemp, flax, linen, cotton, mohair, or silk, or any of the said
materials mixed one with another, be it further enacted by the
authority foresaid, That if any person who, at any time after the said
Twenty-fourth day of June, One thousand seven hundred and forty-
nine, shall be hired, retained, or employed to prepare or work up any
of the manufactures herein before mentioned for any one master, shall
neglect or refuse the performance thereof, by procuring, or permitting
himself or herself to be subsequently retained or employed by any
other master or person whatsoever, before he or she shall have com-
pleted the work which he or she was first and originally so hired,
retained, or employed to perform, and which was first delivered to him
or her, then, and in every such case, the person so offending, etc.
And whereas by an Act made in the twelfth year of the reign of his
late Majesty King George the First, intituled, An Act to prevent un-
lawful Combinations of Workmen employed in the Woollen Manufactures,
and for better Payment of their Wages, . . . if any person retained or
~
1
What the highest classes may be and do.
149
employed as a wool comber or weaver, or servant in the art or
mystery of a wool comber or weaver, shall depart from his service
before the end of the time for which he is hired or retained, or shall
quit or return his work before the same shall be finished according to
agreement, unless it be for some reasonable cause to be allowed by
two or more Justices of the Peace within their respective jurisdictions,
every person so offending, being thereof convicted in manner pre-
scribed by the said Act, shall be," etc.
2. Centralisation and direct communication are now dominant : Need of
quick de-
certainty, regularity, and rapidity of despatch of goods ordered or spatch and
contracted for are indispensable. Hence the necessity is greater
than of old of maintaining our steam-packet lines.
packet-lines.
shopkeepers
The taunt of the First Napoleon, that the British are a nation A nation of
of shopkeepers, has been but too effectual. We are probably, in that was.
consequence of it, becoming (what is so pernicious in individuals'
affairs) "above our business," while the French are becoming
notable for that quiet persistent attention to business in its
details, that contentment with the required restraints and
obloquy, and those thrifty and plodding habits, which we used to
flatter ourselves are our characteristic, and to which, no doubt,
in God's good providence, we owe much of our past remarkable
progress. I with pleasure quote a few lines more from a Scottish
semi-official publication mentioned on p. 64 :—
able conduct
and fifty
years ago.
After praising "the uncommon attention which the legislature Commend-
has given.
and the countenance and encouragement which every one hundred
kind of industry has met with from our nobility and gentlemen of
fortune," it proceeds, "The great spring, however, which has set the
whole in motion, is that spirit, liberality, and application with which
our nobility and landed gentlemen have of late engaged in every
useful project. They are the chief adventurers in our fisheries, manu-
factures, and trading companies. Animated by their example, persons
of every rank and profession have caught the same spirit.”
•
Our nobles of the present day are, perhaps from modest fear of in- Nobles.
trusion on a domain lying outside their province, in general much
too abstinent from participation in movements popular and
patriotic even in the sphere of political activity, and are con-
sequently too easily led to devote their acknowledged ability and
influence, their energies and expenditure, to objects which are less
worthy. Verbum sapientibus.
150
Mr. Fison's
report on the
Brussels
Congress.
Judicious
protection
does not
weaken.
JJ.
RETROGRESSION FROM FREE-TRADE ON THE CONTINENT.
[The following came into my hands after the whole was in type,
and deserves careful consideration as being suggestive. I am re-
sponsible for the bracketed portions-R. A. M.]
From the Report on the International Congress of Commerce and
Industry, held at Brussels in September 1880, by Frederick W.
Fison, M.A., delegate,—a partner, I understand, of the Chief Secre-
tary for Ireland :-
prosperity.
"The International Congress of Commerce and Industry was
organised by the Union Syndicale' of Brussels, a body which in somet
measure corresponds to our 'Associated Chambers of Commerce,' but
which possesses considerably more power as regards its official status.
. M. Sainctelette, Minister of Public Works and Honorary Pre-
Danger from sident of the Congress, after speaking of the dangerous over-con-
fidence and belief in its own unaided powers which a country was
likely to indulge in after a long period of prosperity, added— . Our
ideal of economy to-day is that the world should become one single
market, regulated only by the natural law of supply and demand. . .
The report of M. Jules Duckerts, secretary of the Verviers Chamber
France, etc. of Commerce, adds- . . . 'France, after being the first to adopt Free-
Trade, swung to the opposite extreme, but has gradually returned
and reduced her duties to something like 10 per cent., while at present
she is negotiating treaties, the purport of which is at present unknown.
To sum up, we must acknowledge that the principles of Free-
Trade have far from followed that road on which they seemed em-
barked soon after the first successes of Cobden. If some countries
have in part imitated Switzerland and England, others, in revenge,
such as Russia, the United States, and the Peninsula, have surrounded
themselves with a barrier almost insurmountable; and as for the
States of Central Europe, after remaining stationary for the last ten
or fifteen years, their projects and actions show an unmistakable
tendency to return to protective systems.' . . . The following passage
M. Molinari. from the work of M. de Molinari-La Revue des Nations-is so striking
[striking, say I, because it shows how wide the mere theorist is of the
mark], that I venture to translate it. It is put into the mouth of a
Swiss manufacturer [who, of course, knows that there are stronger
forces at work than this economist mentions, which cause and enable
the protected countries, notably the United States and France, to go
ahead. Protectionism that facilitates aggressive entrance into the
market of the world, or say, of the United Kingdom, does not weaken
in the manner supposed, and has the stimulating effect of the desiderated
and perhaps over-credited competition.] . . . Thanks to our not having
the advantage, like our French competitors, of possessing a flock of
C
International Congress of Commerce and Industry. 151
Swiss.
some thirty-six millions of consumers obliged to content themselves An ideal
with our products such as they are, we are forced to rack our brains
to make our goods suitable and pleasing to the habits and tastes of our
purchasers. . . We should not have given ourselves the trouble to
manufacture all these articles with such horrible designs and names if
we had possessed a protected market sufficiently large to enable us to
dispense with seeking our consumers, and with lowering ourselves by
striving to satisfy their tastes. Again, should we have founded houses
of business almost at the other end of the world, in order to create
outlets for our goods, if we had been able quietly to have turned our
colonies to account by sheltering them from foreign competition?
Competition has ever compelled us to advance forward, without per-
mitting us to rest a single day, whilst our competitors are sleeping
peacefully on the soft pillow of protection.' . . The protective system
has been sapped in Germany, Belgium, and France by reforms and
treaties of commerce. The more our competitors are protected,
the more shall we gain by our freedom. . . . The Report then briefly
touches on the question of an International Customs Union, on the
lines of the Zollverein of 1835, for the States of Central Europe to
include France, Belgium, Holland, Denmark, Germany, Austria, and
Switzerland. . . . The union of these seven countries would comprise
one hundred and thirty millions of inhabitants, and, within its limits,
would possess entire freedom of trade. . . . In the face of all this,
we may well ask ourselves, what has actually been done in the past few
years, or what hope have we in the immediate future? . . . Pride, Legitimate
luxury, and gambling ought to afford a multiplicity of bases for taxation; taxation.
taxation purely voluntary, as one can only incur it by yielding to them.'
bases for
hours of
Cheap production is the main factor which tells for the Verviers Verviers-
spinner. The hours of labour are 130 per week, the workmen being labour.
divided into two shifts, one of which works from 6 A.M. to 7 P.M.,
with the following intervals: 8 A.M., half-an-hour; noon, one hour;
4 P.M., quarter of an hour-or day shift, 11 hours' work, 13 hours'
rest. The other shift works from 7 P.M. to 6 A.M., with a quarter of
an hour's rest at midnight-or night shift, 10 hours' work, hour's
rest, making a total in the 24 hours of 22 hours' work and 2 hours'
rest. The only interval in the week is from 4 A.M. on Sunday to
6 A.M. on Monday, and we are informed that the holidays were theo-
retically four days a year, on the great festivals (such as Christmas
day, etc.), but if these days happen to fall on a Sunday, no equivalent is given.
In practice the total holidays never exceed six or seven days each year.
As to wages: one woman received 8s. 9d. a week, as against 15s.
which would have been paid in Scotland for the same work with
shorter hours. [I cannot adopt the conclusion of many politicians at Rate of
home, who contend that the rate of wages which de facto exists in our be taken into
country must not enter into our reckoning when we consider what account.
equality and fair play demand. See extract from David Hume on
the back of the title-page.]
wages should
152
Enlarged
production
there.
The United States and Woollen Trades.
"Taking the value of the total exports, it appears that there was
an increase during 1880 of £29,961,612 over 1878. Of this increase
What United £13,714,776 was due to the expansion of our trade with the United
States, but the development of our business in that direction has not
consists of. been of the character most favourable to this country, for it has con-
States trade
expansion
Woollens.
TRADE OF 1880.
Messrs. J. L. Bowes and Brother, of Liverpool, favour me with
their Circular, that contains the following, founded on the Official
Figures for 1880:-
sisted chiefly of raw and semi-raw materials, such as alkali, metals,
wool, etc., and not of fabrics and other manufactures, which give
profitable employment to our machinery and our people. A great
change in the relations between the two countries has occurred since
1871. The enormous development of manufacturing industries in the
States since that date has, in a marked degree, changed the current of
the demand from manufactured to unmanufactured goods. In 1871
the shipments to the States comprised 63 per cent. of manufactures,
and 37 per cent. of raw and semi-raw materials. The proportions last
year were 45 and 55 per cent. respectively. The figures relating
to wool and its manufactures call for little comment, but we may point
to the decrease, since 1871, of the export of yarns and worsted stuffs
as an explanation of the depressed condition of English wool, and of
that part of the Bradford trade which is identified with it.
Attention may be drawn to the marked increase in the import of manu-
factures of wool from abroad; the value last year was £7,747,444,
Vast increase against £4,668,474 in 1871; in 1869 it was only £2,598,936. This
of imports
thereof.
matter becomes even more striking when it is seen that the value of
all the yarn and manufactures of this staple trade exported during last
year was only £20,614,395, whilst the import was £9,461,211. In
1871 the figures were £27,184,704 and £5,769,649 respectively.'
From the Economist of 12th February, 1881-
The increase in the exports of woollen fabrics from France to
England, which has attracted attention at Bradford, is confirmed by
the French Customs returns recently issued. It is there shown that
in the article merinos the exports rose from 2,466,914 kilos in 1879
to 3,268,083 kilos in 1880, and that nearly three-fourths of this trade
was with England. In cashmeres and other mixed cloths the increase
was from 189,555 kilos to 441,574 kilos; in "divers woollen stuffs"
from 2,878,657 kilos to 3,390,090; and in "undenominated mixed
woollen stuffs" from 460,038 kilos to 600,643 kilos. These are the
only classes of goods of which the exports to England are distinguished,
and the returns are wanting in precision as to the descriptions of
goods exported.
153
NOTICE.
19th Jan. 1881.
NOTE ON MR. ANDERSON'S PATENT BILL.
and Com-
I am sorry that the Member for Glasgow has again brought forward
what I hope he will pardon me for characterising as his very objectionable
Patent Bill. It contains clauses, one of them quite unjust to individuals,
and both of them extremely injurious to the public, for indiscriminately
elongating patents—those presently in force as well as future ones—for
TWENTY-ONE years. This is done in face of what is practically the unani-
mous decision of the Royal Commission presided over by the Earl of Derby, The Royal
who condemned terms longer than FOURTEEN years. Again, this Bill ignores Commission
the COMPULSORY LICENSE recommendation of the House of Commons' Select, mons' Com-
Committee, presided over by Mr. Bernhard Samuelson. As to the lowering
of fees, which the Bill proposes, anybody who considers the figures exhibited
in the subjoined extracts may well say, "A good system first, please, a
system, if possible, like that of an eminent statesman shown on p. 136 of this
brochure, or like that I myself sketch in Vol. 11. of COPYRIGHT AND PATENTS,
which will be issued soon. Perhaps there never was a question on which
such bold assumptions and grasping of monopoly, such attempts to invade Bold as-
sumptions.
public rights and interests, were ventured as those allowed currency and
gaining credulous acceptance, of (so-called) inventors.
mittee.
})
Extracts from letters in The Engineer of 7th January 1881-
The En-
C
"What our statesmen, as a rule, do not understand, but what a letter in
American statesmen are alive to, is, it seems to me (1) that the gineer
material prosperity and progress of the nation hangs on a good patent
law and practice; (2) that the more patents there are in force the
better for the nation-vice versa, the more orphan' patents we have,
the worse we are off, for a patent come to an untimely death it is
nobody's interest to push, and hence no one man nor the whole nation
reaps any benefit therefrom; (3) that the greatest facility should be
offered to the poorest to make it worth his while to improve existing
processes and apparatus, and to invent better ones; (4) that public
morality and the true interests of the nation demand that there should
be a rigid but fair examination as to the novelty of inventions sought
to be patented; (5) that the inventor should not be taxed because he
spends his time and money in the public interest."
Observe, 1. The people of the United States, being shielded answered.
by protection, can bear patent restraints that would be galling
and hurtful here.
2. There is good reason to doubt whether even their patents
are, on the whole, beneficial. Some time ago in the Western
Answers to
pleas of the
patentists.
Extracts
from another
letter in The
Engineer.
154
Mr. Anderson's Patent Bill.
States there was, and perhaps there is still, a dislike of and strong
resistance to them.
3. A good patent law is certainly desirable, i.e. an equitable
one, in which the claims and liberties and welfare of manufacturers
and the public predominate, or have fair play.
4. It is impossible to say, "The more monopolies and restraints
which are in operation the better." The rewarding of inventors
should have some relation and proportion to the merit and the
value of their services to the nation.
"I cannot prove that 'money is being made out of more than
10
per cent. of the 200,000 patents now in force in the United
States,' any more than 'Patentee' can prove the contrary; but if his
implied statement that as many as 10 per cent. of the said patents—
that is, as many as 20,000-are now making money, can be taken
as a fact, he has furnished a very powerful argument for the
assimilation of our patent stamp duties to those of the United
Multiplicity States, as nothing like that number of British patents are now
making money, for there are not 16,000 in force. . . . The mere
possession of an American patent would not benefit the English
mechanic without opportunity of pushing its introduction into use, but
when he has gone to the States and obtained a patent, he is in a
position safely to make as public as possible his invention, and to
stated plea. negotiate with any manufacturers and capitalists that he pleases,
of patents.
An over-
whereas a three years' patent here is not long enough sufficiently to
protect and benefit the inventor. . . . As an example of the latent
invention of the workmen of this country, which latent invention is
practically kept down by our present stamp duties, the result of the
award system now in force in the shipbuilding yard of Messrs. Denny,
of Dumbarton, may be pointed to. This scheme has been in force for
less than four months, and the highest award that can be granted is
only £10, and yet they have already received twelve claims, of which
only three have been rejected, seven have been found valid, and two
are not yet decided upon; on the seven valid claims £16 have been
awarded. Considering the novelty of this scheme, and the very short
time during which it has been in operation, this result must be con-
sidered highly satisfactory. Were all large establishments to adopt
some such system, the number of beneficial labour-saving inventions
brought into use in the course of a year would doubtless be consider-
A good plan
at Dumbar-
ton.
5. Nobody's interest to push. If confined to cases where an
invention would lie dormant, who would object?
6. " Worth while " to invent.
to invent. Fair enough, but the inventors'
agents are combined in activity to obtain a vast deal more than
this. Nobody would object to adequate recompences.
7. As to novelty, the letter-writer is right.
8. If the public interest were really sought and promoted,
there would be little complaint. The aggressors are favoured.
Mr. Anderson's Patent Bill.
155
recent
able. . . . Surely it will be readily admitted by all that the country is [A more
dependent upon invention for advancement in prosperity and wealth, Engineer
and that a reduction of our exceptionally high patent stamp duties questions
would greatly stimulate invention, and is therefore to be sincerely
desired.'
this.]
""
On this I remark:
9. Even 16,000 barriers or taxes are far, far too many, unless Answers.
a better system is established.
10. Practically the working-man, who is not so much con-
cerned as parties who use his name pretend, has what is here con-
tended for. He can renew.
State might
11. Messrs. Denny show an admirable example. But should what the
not the State do this very thing? Restore some of our abolished do
customs' duties, and we could as a nation enjoy at little cost a
grand development of invention.
Patent Com-
interests '.
Mr. Anderson's Bill judiciously (but with inadequate remuner-
ation if first-class men are to be employed on the stipendiary
system) points to the deplorable want (in spite of the legislative
provision made thirty years ago-so much for the Board of Trade's
defective constitution !) of a Board of Patent Commissioners. The Board of
defect of Mr. Anderson's proposition is that it, so far from insuring missioners.
that the persons to be appointed to that office will work for the
public interests (which by no means run on the same line as
those of patentees), rather paves the way for the evil system's
bonds and burdens being tightened and made heavier, inasmuch
as influences in favour of private interests are always prosecuted Private
with more energy than those of the public, in absence of the ob- public.
viously lacking appliances for protecting the latter in our modern
system of managing such matters, important though they are.
There ought to be a preliminary Commission, that can take a
sound view of what is wanted, set to make inquiries and prepare
a Bill. Such a Commission, presided over by the Lord Chancellor,
or the Earl of Derby, or Lord Sherbrooke, or Lord Cardwell, would a sugges
be hailed with joy, and could render inestimable service. The
subject of patents has been neglected too long, and all the more
remarkable it is that it should be left to a private member not in
accord with either the Commission or the Committee referred to
above, after needful reform has figured as an intended subject
of legislation in one or more Queen's speeches. Is such neglect
creditable to our mode of conducting public business, or in itself
right?
tion.
K
High Protec-
tion bad.
The American Free-Trade League.
The following, printed in New York, 1877, is far too full of
individualism and cosmopolitanism to find acceptance except
among the unwary. It is Utopian, and ignores national interests.
and exigencies:-
THE AMERICAN FREE-TRADE LEAGUE
A plausible
cosmopoli-
Holds that every man should have the right to exchange the pro-
tan system. ducts of his labour, wherever he can obtain the most for it.
That he should be free to seek his own welfare in his own way, so
long as he does not infringe the rights of others.
That so far as he is deprived of these rights, he is in slavery.
156
Giving an ill
name.
It recognises the importance and dignity of labour, because labour
is the source of prosperity. It holds, therefore, that to tax the neces-
sities of the labourer, with a view to benefit the manufacturing capitalist,
is to strike a blow at the foundation of the country's prosperity.
It holds that every country has its peculiar natural advantages,
and that to produce what can be most easily produced in it, and to ex-
change such products for what is more easily produced elsewhere, is
the most profitable exertion of its industry.
That, the true means of encouraging home industry and of lessen-
ing poverty, is to remove every obstacle to the free exchange of the
products of labour.
It holds that "The Protective System," so called, is only ignorant
national selfishness, which defeats its own ends.
That it is contrary to the wise and beneficent laws of Providence.
That it diverts capital and labour from the most efficient occupa-
tions to others proved less efficient by their need of artificial support.
That it is an odious form of class legislation.
That it is a fertile source of social, sectional, and international
discord.
That it encourages commercial dishonesty and official corruption.
It holds that Free-Trade with all the world will conduce to our
A dream of
the future. highest welfare, and is pre-eminently worthy of the American people,
who should be foremost in breaking down every social and commercial
barrier.
The American Free-Trade League submits to taxation and duties
to meet the necessities of Government, but denounces as robbery and
tyranny all taxation for the benefit of special classes.
The League urges all who agree with these principles, to unite with
it in obtaining emancipation for industry and commerce.
[The italics in the above, as elsewhere, are mine. Some of
them indicate points in which I coincide. Note that the depre-
ciated "capitalist" and "class," if rightly viewed, are merely
essential parts of a great social mechanism which the nation and
people require and recognise, and collectively profit by. "The
protective system" is, of course, by no means our equitable system
of neutralising wrongs which can be counteracted in no other way.]
X
157
SECOND APPENDIX.
2d February 1881.-I am now able to correct and supplement
by extracts from newspapers and some letters, in regard to the
Shipping Bounties and other matters contained in the brochure.
A patient perusal of these will, I hope, reap due reward.
RECENT MEETINGS IN SCOTLAND AGAINST FRENCH
BOUNTIES.
From the Leith Burghs Pilot of Saturday, 29th January 1881-
marks on a
artizans at
The resolutions moved and unanimously carried at the meeting in Editorial re-
the Assembly Rooms on Wednesday evening, and the speeches made meeting of
in support of them, in condemnation of the bounty system, were LEITH.
couched in calm, moderate language, and the statements and argu-
ments employed are well worthy of serious consideration. .. What
is Free-Trade? It is simply the unimpeded interchange of all pro-
ducts, natural or manufactured, between one country and another. . . .
All our leading statesmen and political economists are decidedly of
opinion that we should not reverse this policy. . . . Mr. Macfie and his
friends argue that what they want is altogether different. . . . Such are
the arguments of the opponents of the bounty system, and they are
worthy of being carefully thought over, as there has undoubtedly been
much injury done to the sugar industry of Great Britain.
•
THE FOREIGN BOUNTIES.¹
marks on a
workmen's
meeting at
tection is
There was much in what was said at the Dundee meeting last night Editorial re-
in favour of retaliation against the French sugar bounty system.
They have a good deal of plausibility on their side who hold that there DUNDEE.
is a clear distinction between the imposition of a countervailing duty When pro-
to neutralise a bounty, and a direct return to protection, as the term legitimate.
is generally understood. It should not be forgotten that in some cases
protection is admissible, such as in the case, for example, of infantile
industries that but for a little temporary nursing would perish at the
outset. And it is not impossible that the Government of a country
might be justified in imposing on a particular article a countervailing
duty to a bounty imposed by another country, in order that a particular
branch of industry may not be annihilated.
1 Bits from the Dundee Courier and Argus, Friday, January 28, 1881.
*
158
The
Provost's
weighty
words.
The Foreign Bounties.
THE PRESERVATION OF BRITISH INDUSTRIES.
THE FOREIGN BOUNTIES.
A public meeting, called by the Dundee United Trades' Council,
was held last night to consider the system of foreign bounties. .
Provost Brownlee occupied the chair.
•
The Provost said that they had met that night to consider a matter
of national importance, as there could be no doubt that the subject of
bounties, as inaugurated by the French Government, was likely to do
a very great amount of mischief to the industries of this country.
France had commenced by giving a bounty on sugar, and then gave a
bounty on shipping, all with the aim, no doubt, of striking a blow at
British commerce, and unless the Government of this country took some
measures of checking the system, the only result would be that it would
succeed in giving these industries a footing in France to our cost.
There was no doubt a very strong prejudice in this country in favour
of free-trade; and many of our able statesmen seemed to hold that we
should even suffer and allow such things to take their course, and let
time work its own cure; but with all respect to the able men who put
it forward, he was not sure that that was sound doctrine, because it
was apparent that the aim of the French Government was, in the first
place, to destroy the sugar-refining trade of this country, and then,
when that was once accomplished, to allow the sugar-refiners to stand
on their own feet; and they knew that when an industry was once
destroyed, it took a long time before it could be again built up. . . .
The recom-
mendation of
the Com-
Mr. Kelly, London, who supported the resolution, said the injustice
of the bounty system had been well demonstrated by a Parliamentary
mons' Com- Committee, composed of eminent Liberals and Conservatives, who had
mittee on
sugar boun- recommended that if the bounty-giving nations objected to a system
ties.
of refining and manufacturing sugar in bond, then, as a last resource,
Her Majesty's Government should put on a countervailing duty.
But, notwithstanding the recommendation of the Parliamentary Com-
Labourers in mittee, and that three millions of people in the West Indies, and half
the West
Indies.
a million at home, were injuriously affected, they stood that day in
opposition to the theories promulgated by Mr. Chamberlain and the
prominent officials of the Board of Trade in regard to the matter of
the foreign bounties.
Provost Brownlee said he would have great pleasure in signing the
resolutions in name of the meeting. He thought that the arguments
put forward in support of the resolutions were unanswerable. They
only asked to be put upon fair and equitable terms with producers
The Dundee abroad. The prejudice against adopting a countervailing duty reminded
Provost's apt him of the prejudice the Jews had against doing any work on the
comparison. Sabbath. Their prejudice in that direction was so great that they
would not even defend themselves on that day. The consequence was
that their enemies, getting to know of this prejudice, attacked them,
and they submitted to have their throats cut rather than defend them-
selves. That was done oftener than once, and would have been
Meeting at Aberdeen.
carried on longer had not Jeremiah—a man wiser than the rest-urged
that the Jews should be allowed to act on the defensive on the Sab-
bath. Well, all that the gentlemen present asked was that this country
should act on the defensive. If they did so, it did seem to him that
they would be justified, and free-trade principles would not be
violated in any way whatever were the resolutions carried out.
usual votes of thanks terminated the meeting.
The
159
From the Aberdeen Journal of 1st February 1881-
with those at
Last night a public meeting, under the auspices of the Aberdeen Meeting at
Trades' Council, was held in the St. Katharine's Hall, Shiprow, for the ABERDEEN.
purpose of hearing addresses on the subject of foreign bounties
Bailie Duffus was called to the chair. . . . Letters of apology had
been received from Lord Provost Esslemont. . . . Mr. Anderson,
president of the Aberdeen Trades' Council, moved the first resolution,
which is as follows:-"That in the opinion of this meeting, free-trade Resolution
can only exist when competition proceeds upon the basis of relative (identical
natural advantages, and when wealth is produced, distributed, and the other
exchanged without State favour to any competitor; and, since foreign
bounties on products or shipping entering British ports violate these
conditions to the detriment of British capital and labour, and cause an
arbitrary variation of the natural conditions of trade to the ultimate
injury of the consumer, our State ought, by proper measures, to
prevent this violation of free-trade by foreign States within British
territory, so that, on our home market and within British ports, there
may be free-trade for all, and State favour to none."
meetings).
•
The resolution was put to the meeting and unanimously agreed to.
and a strik-
. Mr. Alexander Taylor, Co-operative Coal Company, pointed out a dissent
that foreign competition had affected the Coventry silk manufacturers, ing reason.
the ribbon manufacturers, and driven trade out of the market, and he
asked gentlemen whether they were prepared to protect these in-
dustries by putting a duty on foreign imports, and to put a counter-
vailing duty upon French shipping? Where were they to stop if they
commenced this sliding scale? He contended that they must not
simply look upon one special industry, but at the broad interests they
had at stake in the country, and unless they were prepared to revise
the whole commercial legislation, and go back to protection, it was
simply absurd to go into one special industry.
From the Paisley Daily Express, January 25, 1881 :—
MEETING LAST NIGHT.
Mr. Peters, Bristol, said . . . Bastiat treated of foreign bounties,
and said that they were the greatest producers of strife between
countries. . . . Bastiat said that these bounties diverted capital, and
with capital labour, with labour population. . . . In the Oxford Cobden Club
Cobden Prize Essay of 1879-and I wish you, gentlemen, to note this essayist's
carefully, because I believe that this essay was examined and passed
concurrence,
160
Paisley, Greenock, and Glasgow
by the Professor of Political Economy of Oxford, with two members
of the Cobden Club, and I take it therefore that they agreed with the
author-it says: "The trades of sugar-growing and sugar-refining are
being ruined in England, not only by foreign duties, but also by foreign
bounties, which enable our rivals to sell their sugar in England below
the cost of production, indemnifying themselves at the expense of their
own taxpayers. There is no doubt in so doing they are making a
present to the English consumer, but it is a present of no great value
to him, whilst it is fatal to a thoroughly legitimate British industry,
and it is given at the expense of the foreign taxpayers, as well as at
the cost of much absolute waste. With such a present we can afford
to dispense; at any rate a succession of Governments have shown this
to be their opinion by the frequent remonstrances they have addressed
to foreign Governments on the subject. If we could impose on foreign
sugar a duty exactly equivalent to the bounty it has received abroad,
we should simply annihilate the effects of the bounty and restore a
sort of virtual free-trade." . . . Professor Thorold Rogers, M.P. for
Rogers's ac- Southwark, who was surely a good Liberal, had stated to him in the
countervail- lobby of the House of Commons, that if he saw a chance of carrying
an effective measure he should support a countervailing duty. He
(Mr. Peters) asked Professor Rogers if they were in opposition to the
teaching of political economy in asking for a countervailing duty, and
if they were so, he (Mr. Peters) would be glad to emigrate to Germany
or Austria and make sugar there. Professor Rogers gave them dis-
tinctly to understand that they were asking nothing but what was fair.
Professor
quiescence in
ing duties.
The con-
sumer.
A Greenock
editorial.
From the Greenock Advertiser of February 3, 1881-
An extreme but thoroughly constitutional step is about to be taken
by the leaders of the agitation that has been so persistently maintained
for the past three or four years for the abolition of foreign bounties on
sugar exported to this country, or, alternatively, for the imposition
of a countervailing duty to neutralise the effect of the bounties on
British industry.
DEPARTURE OF GREENOCK BOILERMAKERS FOR
AMERICA-TO-DAY.
Boiler-
makers
The steamer Prussia, which sails this afternoon for Boston, takes
emigrating. out among her passengers over 100 boilermakers, engaged for her
by Mr. Alexander Brown, secretary of the Boilermakers' Society,
Greenock, who was instructed by the representative of the Detroit
Dry Dock Company, Michigan, U.S., to secure first-class workmen.
Confer-
ence at
GREENOCK.
SUGAR BOUNTY CONFERENCE IN GREENOCK.
Mr. Peters testified to the successful and encouraging nature of
the meetings that had recently been held in Scotland. In Paisley,
certainly an adverse resolution had been carried, but it was of a very
161
and the French Bounties.
paradoxical character, as it affirmed that free-trade did not depend on
its being carried out under the principle of purely relative natural
advantages. He was confident that the people who carried that Paisley
resolution would yet regret it.
dissent.
Advocate.
Mr. John M'Lean said-Along with a number of the Edinburgh
Trades' Council they waited on the Lord Advocate on the day of
the election. The Lord Advocate, although he was in the bustle of The Lord
an election, and had very little time to spare, received them in a very
courteous manner, and listened patiently while they stated their case,
and showed that by the way he treated it that he had been acquainted
with it. The result of the conference was, that the Lord Advocate
stated that he believed his father's views were the views of right and
justice, and he, although in a more humble manner, would endeavour
to follow in the footsteps of his father in the question of getting those
bounties abolished. They left the Lord Advocate highly satisfied, and
gratified at the fact that the son of old Duncan M'Laren, as they liked Mr. Duncan
to called him, was willing to adopt his father's views on the question M'Laren.
of foreign bounties. Then at Dundee, they had the Provost of that
important centre of industry in the chair, and they had not only the
Provost, but they had six Town Councillors on the platform. Almost
the entire Corporation of Dundee showed their sympathy by giving
their practical support in a crowded meeting of intelligent and respect-
able working-men. The resolutions were submitted, one of them, the
third, by a Town Councillor, and all carried with acclamation. One
important statement was made at the conclusion of the meeting by the
Provost of Dundee, and that was that he had studied the question
thoroughly, and was convinced of the righteousness of the object they
were seeking to obtain.
From the North British Daily Mail, February 3, 1881-
GLASGOW.
On Tuesday night an important conference of the representatives Meeting at
of the trades of Scotland affected by the foreign bounty system was
held at Galloway's Hotel, West Nile Street. There was a large attend-
ance, and Mr. John M'Nair, vice-president of the Glasgow United
Trades' Council, was called upon to preside.
The Chairman.-The French Senate had passed into law the
measure known as the French Mercantile Marine Bill, which granted
heavy State bounties upon French shipbuilding and the ship-carrying
trades of France. These bounties were originally intended to last but Extended
ten years; but the Senate of France-more Protectionist than even the term of
Shipping
Chamber of Deputies-had extended the operation of the bounties Bounties.
from ten to twenty years for wooden ships, and thirty years for mixed
wooden and iron vessels. This he (the Chairman) regarded as a
deliberate attack upon British naval and commercial supremacy, and
one which the nation and Parliament should take strong and effective
defensive measures to prevent in the interest of the empire at large.
Others supported the resolution at great length, when it was put
to the conference and adopted amidst loud applause.
L
Extracts from Letters.
Extract from a printed letter of Mr. Frederick Blood:-
BIRMINGHAM, June 30th, 1879.
The United States have gone triumphantly through trials and
troubles, which England, with her present policy, could not sustain.
They have passed through a terrible and exhausting war, they have
liberated their slaves, paid off a large portion of their National Debt,
and redeemed a greatly depreciated currency; and having passed
through all this, you have now to admit that they are still more
prosperous than England, that their trade is better; yet, if your
opinion of the effects of protection is correct, England ought to be
prosperous, and the United States the reverse. The fact that the
United States under protection are better off than England under free-
trade, shows the necessity of an inquiry into the causes of our present
disastrous position. . . All who will may see that countries like the
United States and France not only prosper under protection, but can
easily bear calamities which would crush England as long as she keeps
to her present policy. . . . We wisely restrict the hours of labour in
the textile trades to 56 per week, and then unjustly and unwisely
subject these trades to the unlimited competition of foreigners who
work their mills from 72 to 84 hours per week. The hours of labour
on the Continent are so long and the wages so low, that the condition
of Continental workmen generally is much inferior to that of our
English workmen.
162
•
From another Liverpool banker :-
2d February 1881.
way.
I have never been a politician, but such free-trade as has been
taught to this generation . . . I have always totally opposed in my small
So-called free-trade is not what free-trade was prefigured by
them at all. If it were, I should not be afraid of Englishmen always
keeping to the fore; but when we see our ships shut out of Spanish
ports, for instance, by prohibitory duties both on ship and cargo, while
Spanish ships enter ours on equal terms as our own flag, it is a
monstrous injustice.
The French are now following suit, as your pamphlet justly points
out; and now the Americans seem as if they were going to follow.
Still I do not see how it is a workman's question to bring things
back to a right footing, for none have done more of late years to drive
our trade to other countries-notably the iron trade to Belgium-
than they have; and now even the Government steps in and deals a
heavy, if not a death blow, to large employers of labour.
From a consistent, decided Liberal :-
Suppose the American Government were to grant a bounty of say
1 cent per yard on the manufacture and export of cotton goods, the
effect of this would probably be to shut up in a few years the most of
the cotton mills in England. What would Mr. Bright and Govern-
ment say to that? There would then be such a howl from one end of
England to the other as compel Government to act vigorously. When
will Government learn to do anything until it is too late?
163
EXTRACT FROM A PROGRAMME OF A PROPOSED
“LEAGUE FOR PROTECTION OF BRITISH INDUSTRIES."
trade.
"Free Trade,” as interpreted, is the admission of the products of a denuncia-
foreign labour into this country free of duty to compete in our markets tion of free-
with the heavily taxed products of British labour. These they under-
sell, and by so doing deprive our workmen of their labour, of their
wages, and consequently of their only means of subsistence. Free-
trade, such as we have it, means taxing all classes of Englishmen, but
more especially the poor, in order that foreigners of all countries may
exchange their goods in British markets for British gold, while
restraining the British workman from finding a sale in foreign markets
for the products of his labour, by imposing thereon heavy import
duties. They promised that this country would be able to com-
pete in manufactures against all nations, and would become "the
workshop of the world." That we should manufacture all commodities Anticipa-
better and cheaper than any other people; and that, in consequence, tions.
all nations would buy our goods with eagerness. That the natural
result of such a state of things would be an export trade of such vast
proportions as to enable us to buy from abroad an abundance of goods,
which foreigners would let us have in exchange for our manufactures;
and that the state of things would bring about universal peace and
good-will among nations, while England would herself increase in
wealth, contentment, and happiness.
•
•
+
the reverse.
Every one of those predictions has been falsified, and most of them
have been actually reversed. Our export trade for the year 1846 Exports
amounted to over 148 millions. Our import trade then barely reached eceded im-
76 millions. The foreigner at that time paid us annually over 72 ports; now
millions, to be distributed among our workmen and producers. Since
then our export trade has sunk below the value of our imports to such
an extent that we are annually forced to pay the foreigner over 140
millions, to be divided between foreign workmen and manufacturers,
who are literally taking the bread out of the mouths of our own
British workmen and their families. Free-trade is ruining our national
industry. Hence there is but one consistent and certain remedy,
and that is, to abolish False Free-Trade; that is to say, to abolish the The free-
one-sided free import system, and to revert to the practice of the true
principles of political economy and to True Free-Trade, as expounded
by Adam Smith, Ricardo, M'Culloch, and John Stuart Mill, in the
sentence of the latter and most recent of these apostles of free-trade,
wherein he declares that "A country cannot be expected to renounce
the power of taxing foreigners, unless foreigners will in return practise
towards itself the same forbearance. The only mode in which a
country can save itself from being a loser by the revenue duties
imposed by other countries on its commodities, is to impose a cor-
responding revenue duties on theirs."
trade of great
economists.
This policy of taxing the products of foreign labour is styled
"Protection," and it is denounced by the Liberal party.
Words of
weight.
So-called
free-trade a
delusion.
How we are
put off.
Such a noble
diversified
empire!
164
A Customs' Union
From the London Examiner, January 1, 1881-
There is not only natural feeling but hard common sense under
the proposal to try and secure the blessings of free-trade for the
British Empire, instead of the present system by which we allow all
the world to enjoy the advantages of our free-trade, while on every
side the barriers of protectionism are raised against ourselves. The
theory of free-trade is, indeed, admirable, and the day on which the
nations of civilisation will have generally agreed to become sincere and
consistent free-traders, a vast step will have been accomplished towards
the realisation of the millennium. Every land will grow and produce
precisely what it is best suited to grow and produce by soil, climate,
and natural position, and whatever commodities any land requires
which it could only grow by the application of a disproportionate
amount of expense, will be imported free of all taxes and dues from
the place where such commodities have been naturally produced on
the most advantageous terms. It is wonderful, it cannot be denied,
to what an extent such an arrangement would cheapen the cost of
living and facilitate the advance of the world in general comfort.
Economy and efficiency would go hand in hand, and perhaps, if any-
thing could eradicate the evils of war, the interdependence of nations
upon one another, the way in which every country in turn would be
obliged to look to other countries for various indispensable articles of
subsistence or other primary necessity, would quite forbid states and
governments from venturing to break up such an established concert
and partnership. In practice, however, it is found unfortunately, and
especially by Englishmen, that free-trade may mean something very
different from this enticing picture when free-trade is only partially
recognised and accepted. England throws wide open her ports and
markets to the goods of every country, to whatever France, or Austria,
or America, has to send for sale and consumption in our island. The
sugar of French refineries, and the ploughs and axes of American iron-
works, are sold at a handsome rate of profit throughout broad England,
but France will give no similar fair play to British sugars, and the
United States regard English manufacturers and aboriginal "Injins"
as equally "pizen." "We admire free-trade very much," almost
every Continental statesman will tell you. "Your Cobden was a very
great and disinterested man. We sell largely to you since you have
abolished your duties and customs, and we should be glad to let you
have free-trade also with us, only, you see, we must protect our native
industries from being discouraged by foreign competition."
"Heads
I win, tails you lose," is a free translation of the Continental exposi-
tion of free-trade principles.
It has often struck many thoughtful people that, looking to the
vast extent of the British Empire and its colonies and dependencies,
and remembering the absolutely inexhaustible variety of all possible or
conceivable products and commodities which are to be found in some
quarter or other of this enormous commonwealth at all times, it is
surely strange that we have not sought more earnestly to develop
production and commerce among the members of our own community
of the British Empire.
empire
of foreign
in preference to any other state or portion of a state in the world.
Why do we not organise a free-trade system in the first place, at any Free-trade
rate, between the nations and states of the British earth, Canada, within the
Ireland, England, Australia, New Zealand, Bengal, Bombay, and
Jamaica, Scotland, and South Africa? A universal British Zollverein
ought to be feasible, and ought certainly to be mutually advantageous
to all its members. If universal free-trade among the fourteen
hundred millions of the earth's inhabitants be a glorious ideal, would
not universal free-trade among the three hundred and odd millions of
the British Empire be a great progress towards the ideal? How
anxious foreign states would be to obtain admission to the markets of would in-
that vast confederation. How glad foreign states would be to guarantee duce favour
equal rights to British traders in foreign markets in return for re- countries.
ciprocal admission to such a liberty. Divided against ourselves, we
are the mark of every foreigner's manœuvres. United against all out-
siders, what rival state, which cared anything for its commerce, would
dare to tax the products of England, or of Canada, or of Australia,
when a universal prohibition of the foreigner's commerce would be the
penalty along the endless coasts and in the countless harbours of the
vast Imperial Customs Union? It is the aspiration of many of the
most serious and farsighted of patriotic politicians to see the
advent of the day when an Imperial Confederation may arise in An Imperial
matters of Government and State as well. In matters of trade, at Confedera-
any rate, there should be no moment of unnecessary delay in en-
deavouring to bring about a community of interests and harmony of
direction between all the states and provinces beneath the sway of the
heiress of Egbert.
165
•
SOUND VIEWS OF AN EX-SCOTCH MEMBER OF
PARLIAMENT.
"When our export trade is ruined, our manufactures closed, our
artisans and labourers starving, the scales may fall from the eyes of
the governing classes, and they may probably try to retrace their
steps. If it were possible to establish a Customs' Union between the
mother country and dependencies, we could dictate to the world, and
the all-on-one-side free-trade evil would soon be cured."
166
The Liver-
pool discus-
sion in 1860.
DREGHORN, COLINTON, EDINBURGH, 1st Feb. 1881.
say now?
DEAR MR. GLADSTONE,-In compliance with the request of a meet-
ing, the number of which the reporter of the Scotsman estimated as
300, I have the honour to transmit you a copy of resolutions unani-
mously adopted there. I was not instructed to give my own opinion
on the subject thus brought under your notice, but it will not be
improper for me to add that the French bounties, especially those
contemplated for shipping, deserve a patriotic Government's earnest
consideration. As a member of the Liverpool Chamber of Commerce,
I took part in the deliberations which so important a community, and
one so deeply concerned, could not but engage in at the time the
French Treaty of 1860 became known. Opinions which I then
expressed and printed appear to me to have been verified in our
subsequent experience of twenty years. I do not venture to suggest
that you, who played so prominent a part as Chancellor of the
Exchequer at the time, must feel disappointed; but I have long
What would expressed doubt whether Mr. Cobden, if he were now alive, would
Mr. Cobden favour renewal in anything like the original terms. His confident
anticipations have not been realised, but the contrary. He probably
would not repeat with satisfaction, at any rate in the naked form in
which he presented it, the statement that he had been led most to
consider the benefits of the Treaty in the light of what it would allow
His strange the British people to import. If he had limited his desire for
imports to articles of food and raw materials of manufacture, and
manufactured commodities for the production or perfecting of which
this country is not suitable or well placed, almost everybody would
cordially agree in his hope. But what has actually taken place? Of
the very large sum of our importations from France, the greater part
is composed of commodities which could quite as well be produced and
Tossing away made complete on British soil and by British labour. What a loss of
employment to our people, and a profit to our industrial chiefs, does
the loss involve! I am bold enough to say that under the guise of
free-trade, we have been contending at a disadvantage not inherent in
the nature of the case, but created by our own legislation and finance,
or, at any rate, lying within the range of matters which legislation is
entitled, if not required, to take into account. That there has been
a change of mind among commercial people with reference to the
French Treaty does not admit of doubt. This at any rate is clear,
that there prevails hesitation, which can only be satisfied by the
making of inquiries on the part of the Government, as to the facts
concerning the trade relations of the two countries. It is in this spirit
that the Bradford Chamber of Commerce passed the resolution to
Chamber of which I adverted in the letter I had the honour to address to you
idea about
Imports.
of employ-
ment.
Bradford
Commerce.
31st ult., although in referring to the exact words of the motion I
find I gave them a rather wide scope. Both workpeople and their
employers would welcome a carefully selected commission of inquiry.
Changed
views.
LETTER TO MR. GLADSTONE.
Patent Laws.
167
protection.
margins.
troduce dis-
You will remember that, when I had the honour to follow
you as leader within the House of Commons, I made motions on our
Patent Laws.¹ I will therefore be excusable if I specify Patents as Patents and
belonging to the class of law-created burdens, which operate against
fair competition with foreigners. During the régime of protection,
royalties paid to patentees, which probably were then by no means so
heavy, and certainly they were incomparably less numerous, did not
incapacitate British industries in the easy-going competition which
they were called to wage: the payments were practically lost or
merged in the protection. Now margins for profit are, on the Reduced
average, very much lower than they used to be, and, if I mistake not,
the amount paid to patentees is prodigiously greater. It is obvious
that in a trade where one or two per cent. represents the clear profit,
liability on the one side to a royalty for a single invention which may
amount to 5 per cent., and this payable whether there is profit or loss,
exposes a British manufacturer to inequality with his foreign rivals,
who, if carrying on the business in France, may, and not improbaly
would, have less or nothing at all to pay; and still more if in Holland,
where, there being no patent laws, they must be exempt, that is, free Patents in-
to adopt every improvement without any burden whatever. You can- crimination.
not be surprised that to me, who realise the importance of a movement
in a right direction with respect to invention, it is very disappointing
to find, year after year, a Patent Bill read a first time, which does not Mr. Ander-
carry out the recommendations either of the Royal Commission son's Bill.
presided over by Lord Derby, nor of the Commons' Committee on
which I sat. It appears to me high time, however, that something
should be done. Such legislation should not be left to the initiative
of a private member, especially if he is prompted by and is the pro-
moter of views of private parties, whencesoever prompted. I respect-
fully submit that if Lord Derby, or Lord Sherbrooke, or Lord Card-
well, or the Lord Chancellor, were entrusted by the Government with
the task of preparing a Bill, he could easily draw up a tolerably
satisfactory one. The strangest thing of all is, that the Act passed The intended
twenty-seven years ago has never been given effect to, in respect to mission.
the Board which it more than permitted the Government to found.
Such a Board, working with due regard to public interest, yet with
kindly fairness towards inventors and manufacturers, if it were con-
stituted on a comprehensive basis, even now would work wonders, and
for a time no Patent Bill need be passed, although I am deeply per-
suaded that the compulsory licence system ought to be legalised.
Patent Com-
It is not without reluctance that I have taken the liberty of writing
you at such length, and introducing subjects which, though cognate,
might, some people will think, be left unattended to. I do not
concur in such a notion.—I have the honour to be, dear Mr. Glad-
stone, with much respect, yours faithfully,
R, A. MACFIE.
1 I mentioned these at the meeting; but what I write is done proprio motu
and entirely on my own responsibility.
168
French
scheming.
DREGHORN, COLINTON, EDINBURGH, 1st Feb. 1881.
lion.
DEAR MR. BRIGHT,-By request of a meeting in Leith, the number
present at which the Scotsman report estimates at three hundred, I
have the honour to transmit to you copies of resolutions regarding
French bounties which were passed unanimously on the occasion.
When incidentally I used the word "retaliation," the meeting em-
phatically demonstrated approval of recourse to such a mode of extri-
cation from existing difficulties and the still more formidable ones that
are looming in the future. My own conviction is, that if the British
The British lion exhibits himself as toothless and clawless, undue freedom will
continue to be used-will be increasingly used-with the generous.
animal. The working-men are evidently in advance of the political
leaders belonging to both parties of the State in the matter of pluck,
I am, as much as any one ought to be, a friend of peace, but irritation
may arise in consequence of the very good bargain which France has
made, yet is not satisfied with. Surely we have had quite enough of
treaty relations with our, I admit, good neighbour. It cannot be safe
(when she has become so active and ingenious and diverse in her
procedure, indeed to the point of being ready to assume the aggressive)
to bind ourselves in such a manner as to tie our hands as a nation, and
prevent the possibility of our escape from difficulties which she may
be storing up for us, and which ordinary foresight is unable to provide
against the mischievous effects. Further, in the present state of the
world, you probably coincide in aversion to any stipulations that might
Freedom of prevent the raising of money by indirect taxes which, as well as direct
taxes, the requirements or policy of the future may show to be
expedient.
finance.
The late Sir William Brown publicly called the French Treaty a
"sacrifice" which, in the peculiar circumstances of the period, it was
politic, as I understand, for reasons lying outside commerce, to offer.
Allow me respectfully to call your attention to what I hope you will
regard and favour as a practical resolution of the Bradford Chamber
of Commerce, that there should be a Commission to visit the seats of
industry and trade, in order to inquire what are the views there
generally held regarding a French Treaty, and the reasons therefor.
After twenty years' experience, I might almost say disappointments,
it is business-like to investigate. All the more will this appear when
we remember that the question of free-trade in manufactures was never
a subject of public controversy like that of free-trade in corn, and
when we reflect that since the Treaty was negotiated, there has been a
large extension of the suffrage, and we now have a body of electors
whose wishes cannot be said to have been consulted. At any rate
they, to a very limited extent, participated in direct representation.
I do not like to use the word "complimented," but the masses would
no doubt feel pleased if regard is paid to their position by the granting
of the Bradford request. There is the further novelty to justify or
call for a fresh departure-that there was no idea in 1860 that France
Sir William
Brown.
Bradford
suggestion.
New
electors.
LETTER TO MR. BRIGHT.
Patent Laws.
169
contem-
would, while secured advantages by treaty, contend with us by means The bounties
of bounties, least of all was there any idea she would coolly do were not
anything so extraordinary as give premiums, which the President plated when
of the Board of Trade characterises as bribes, in order to get possession making.
of British packet-lines and the high-class trade, attracting other trades,
which these lines bring for their ports of departure.
taxes to
differentiate
In what follows I hope to promote the object of the meeting, although
I do so in my individual capacity alone, and on lines with which British
artisans are not yet familiar. I have ventured to introduce, in a letter
to the Right Honourable gentleman at the head of the Government, a
branch of the subject which too generally escapes attention, I mean the
unequal incidence of the burden of royalties, that is, of taxes to patentees. Unequal
Remembering well the views I heard with pleasure enunciated by incidence of
you at the Liverpool Chamber of Commerce, may I not hope that you patentees
will do me the honour, and what is infinitely better, manufacturers
the service, of expressing concurrence in a suggestion that Lord Derby,
or Lord Sherbrooke, or Lord Cardwell, or the Lord Chancellor,
should be encouraged or requested to prepare a Fatent Bill? Very
serious would it be if Mr. Anderson's Bill, which elongates patents to
twenty-one years, in teeth of the Royal Commission's Report to the
contrary, should become law. Yet something ought to be done,
something of a temporary character, for ere long a thorough reform A temporary
will be required, seeing the patent system as at present worked is Bill for
hard to reconcile with free-trade in manufactures as at present ad- wanted.
ministered.—I have the honour to be, dear Mr. Bright, with much
respect, yours faithfully,
R. A. MACFIE.
patents is
LETTER TO THE PRESIDENT OF THE BOARD OF TRADE.
DREGHORN, COLINTON, 2d Feb. 1881.
Loss of
SIR, I have the honour to transmit you a copy of resolutions
which were unanimously passed at a meeting held in Leith last week,
and I respectfully invite thereto your best attention. The working
men present do not regard themselves as being out of accord with
free-trade, but, on the contrary, hope that the countervailing duties or
rectifications which they favour secure it the better. They naturally
feel sorry to see industries that were once flourishing in our country
now languishing or driven away—I should rather say drawn away. industries.
It does appear to me clear that the time has come for diligent search
into the causes of this great loss and disappointment, and for the
best means to recover our industrial position. I am confident that a
Royal Commission, composed of acute merchants, manufacturers, and a Royal
mechanics, political economists, and statesmen visiting the provinces, Commission
would return to London with a mass of valuable information and
suggestions which could be turned to good practical account in legisla-
tion. Surely something of the kind is wanted, and would be satisfactory
to all parties concerned before further steps are taken as to a new
French Treaty. I respectfully remind you of two things-that
suggested.
Board of Trade Evidence on Sugar Bounties.
expectations regarding the good the Treaty now in force would effect
have not been verified; and that, since the dominant commercial policy
was accepted, the electoral body has been enlarged,-which means that
the working classes, who are so deeply concerned, had not an oppor-
New electors tunity to take any part in the deliberations of 1860, and ought now
since 1860. to have their interests acknowledged and considered. What I submit
Protection in
Canada.
Sugar
refining.
Mr. Giffen
ties with no
views boun-
favour.
170
would be hailed as courteous, can hardly but prove politic, and pro-
bably would be beneficial. I have the honour to be, Sir, your faithful
servant,
R. A. MACFIE.
The Right Hon. Joseph Chamberlain, etc.
From A Summary of the Report of the Select Committee of the
House of Commons and Concluding Evidence, 1880, with an
Introduction by James L. Ohlson, F.R.S.L. :-
BOARD OF TRADE EVIDENCE.
Mr. Robert Giffen, Chief of the Statistical Department of the
Board of Trade. . . . The imports into Canada of refined sugar from
the United Kingdom have fallen off because of the protective duty in
favour of Canadian refineries. . . . The tendency of giving a bounty
is to stimulate the growth of sugar, but you cannot tell how much the
bounty is answerable for. The bounties in Austria could have had
nothing to do with growth for internal consumption. . . . A French
book on sugar, by M. Lepelletier de St. Remy, says that refineries are
diminishing in France, the reason being the great progress and
concentration of the trade. . . . The differential import duties in
European countries stimulate the native production. It does not
seem that the people of the United Kingdom have any cause to
complain. . . . For the last thirty years, revenue has been the sole
object of our duties. Guaranteeing the interest upon railways is
giving bounties on the export of everything the countries produce-
the Indian Government spending some years ago three millions
sterling per annum in bounties in this form. . . . The effect of my
evidence is that our Government have interfered too much. The
interference commenced long before the gain was so apparent as it is
Now the mischief has been done, and we see it is much less
altogether than the gain. I should not regard bounties with favour,
although they were the means of placing £2,500,000 in the pockets
of the taxpayers, because they would be an isolated folly of a
particular Government at any time. As a consumer, I should be
inclined to take an article below cost price and say nothing about it.
It is hardly worth while to talk of buying an article rendered below
cost of production artificially, as a good or bad thing, because it is an
impossible thing to any extent; but where you do get it, it is a good
thing. As to being applied to all the manufactures of this country
and ending in their ruin, it could never be applied to all the manufac-
tures, except theoretically in regard to existing manufactures. When
now.
•
Extreme views of Mr. Giffen.
and her
you have been put out of one manufacture, you would immediately
have new ones created. Bounties could not go on indefinitely.
Austria, with the utmost difficulty, applies £500,000 or £1,000,000 a Austria
year in bounties, but she could not apply two or three millions Exchequer.
without bankruptcy. It was pointed out to witness by the chairman
that there were industries one country could carry on better and
cheaper than another country, and our manufacturers could not go
into other industries except on natural and fair terms of competition
with similar industries in other countries. . . . As the thing has gone
on so long, there is very little call for us now to go to foreign Govern-
ments and ask them to stop the bounties, bounty-giving being one of
the most foolish things a government could do. Cheap sugar is of "Most
much greater advantage to us than all the disadvantages which the foolish."
sugar-refining trade has suffered in this country. The question of the
cost of production only affects the price of articles in the long-run.
When two men were competing, if one of them got a special advantage
by bounties, it did not necessarily follow that the other man was put
out of the trade, but that he might meet it by reducing his wages or
profits. Reducing the wages of the working men, and keeping on the Reduction of
bounty, is better than taking off the bounty and keeping the wages as
they are. It is better to let the bounties alone; in saying so I am
quite certain I am not controverting any of the principles of free-
trade. . . . A Government should not meddle with trade at all. The
best thing is to let the folly of a foreign Government alone and not try Mr. Giffen's
to rectify it. The only way to deal with it is to propose a grant to the way of
people in this country suffering from it. If you are not prepared to
do that, you should not listen to any other thing. Assuming equality
in other things, the man who receives a bounty obtains that advan-
tage. Assuming that a particular industry is destroyed, it does not
follow that the mass of industry at home is lessened. It might even
increase. .. The farmers have had to contend with bounties in the An inexact
wages.
escape.
·
171
shape of cheap transportation. A bounty on the carriage is the same analogy.
thing as one on growing sugar. The English Government would not
open negotiations on the cheapness of transit in any country, though
they have done so in reference to sugar.
carried on
in weavers'
homes.
Coventry Ribbon Trade.
From Papers relating to the Ribbon Trade and the Commercial
Treaties with France. By William Andrews. Printed by order of
the Coventry Chamber of Commerce. Second Edition. 1878:
From the Coventry Standard of December 22, 1876 :-
On Monday last, December 18, a meeting of the Coventry Chamber
of Commerce was held. . . . Mr. Edwards and Mr. Loudon were in
favour of the appointment of a deputation, Mr. Loudon remarking
that the crisis to which they had been looking forward for the past
ten years had now arrived, and something ought to be done.
The following is a summary of the interview :—
of Coventry
Mr. Andrews stated that he had been deputed by the Coventry
Ribbon trade Chamber of Commerce to represent the ribbon trade, and he asked
that in the new Commercial Treaty the duties now levied upon all
kinds of ribbons imported into France should be absolutely and com-
pletely abolished. He remarked that during the last seventeen years
England had admitted all kinds of French ribbons without any duties
whatever, and that the effect on the Coventry trade had been most
disastrous, it being now reduced to one-half of what it was prior to
1860, whilst at the same time the value of our imports of foreign
ribbons had been considerably more than doubled. It was therefore
self-evident that the French ribbon manufacturers could not possibly
have anything to fear from English competition; and he therefore
asked, as a matter of justice and common fairness, that the duties on
all ribbons going into France should be absolutely abolished, and the
more especially as the present duties, although small, were quite
prohibitory. These estimates refer to ribbons only, and do not
include other woven goods. Some persons are of opinion that I have
under-estimated our production of ribbons prior to 1860. One of our
largest manufacturers estimates the annual value of ribbons produced
in the Coventry district for some years prior to 1860 (omitting 1857),
at 2 millions sterling at least. . . . We import about three pieces of
foreign ribbon for each piece produced in Coventry. . . . The manu-
facture at Coventry was principally carried on in the houses of the
weavers. . . . Many of the looms went by steam, and that the charge
for steam-power for each loom was 3s. 6d. and 4s. per week. That the
cost of production of ribbons in Coventry was about one-half greater
than in St. Etienne.
No need of a
reaty.
172
•
•
•
T
COVENTRY, March 26th, 1877.
SIR, A strong feeling has arisen here amongst those engaged in
the Silk Trade, that it would be very advisable to exclude ribbons
altogether from the new Commercial Treaty with France, if it should
turn out that the French Government cannot concede the demand
which I made. . . All kinds of foreign ribbons could be admitted,
duty free, into Great Britain as easily without a treaty as with one.
WILLIAM ANDREWS.
Report by Mr. Andrews, November 13th, 1877:-
The point in the Cobden Treaty of 1859 of which we com-
plained in Coventry, was that the arrangement respecting ribbons was
Mr. Andrews, President of the Coventry Chamber. 173
sided
treaty en-
altogether a one-sided and an unequal one; that it allowed foreign The French
manufacturers to send their ribbons into Great Britain free of duty, Treaty one-
whilst Continental markets were closed against us by duties which were
not merely protective but prohibitory. He therefore ventured to advise
that whatever arrangement the Government made concerning ribbons
in the new Treaty, they should above all things avoid making any one-
sided or unequal arrangement, and that therefore if it should turn out
that the French Government would not consent to the abolition of the
duty on English ribbons going into France, that it would be best to
exclude ribbons from the Treaty altogether, leaving the question free
and open pointing out at the same time that in a matter of free
imports it would be as easy to admit ribbons free of duty without a
Treaty as with one. He stated that he was not prepared to say that against
the exclusion of ribbons from the Treaty would be of any great imme- prospective
diate benefit to Coventry, but that, on the other hand, he could not gagements.
see the slightest reason why we should bind ourselves by contract for
another ten, fifteen, or twenty years, to admit foreign ribbons free,
unless we received a sufficient equivalent for it from foreign countries.
He further pointed out that no half measures would be of the slightest
use to us in Coventry-that was to say, that, supposing the French
would consent to reduce their existing duties by one-half (say from
about 6 to 3 per cent.), that it would be of no use to us; that the
present French duties were absolutely prohibitory; that we did not
send a single piece of English ribbon to France; and that if the French No ribbons
duties were completely abolished, it was very doubtful if it would alter go to France.
matters. . . . He asked the Derby gentlemen who were present at the Derby.
meeting how many looms there were in that town for the manufacture
of ribbons, and they replied that they did not believe there were more
than a dozen, while previous to the Treaty there were 700 or 800.
With reference to the population of the city of Coventry and the
adjoining parishes in which weaving was carried on, he gave the
following total decrease in the ribbon-weaving district, 4818.
Report by the President of the Chamber of Commerce (Mr. W.
Andrews), 15th July 1878:-
The second French report is of direct importance to the
Coventry silk trades. . . . At St. Etienne there were 17,000 looms St. Etienne.
and 50,000 workpeople. . . . 1st, They stated that they were strong
advocates of treaties of commerce. 2d, They demanded that the duties
on ribbons entering France should be maintained at the present tariff
of 4 francs per kilogramme. 3d, They expressed a willingness to
accept a reduction of 25 per cent. (3 fr. instead of 4 fr.) on the ribbon
tariff, conditionally that the duties on cotton yarns were reduced by
one-half. One passage in the evidence refers to Coventry. One of
the members of the St. Etienne Chamber, in asking that the duties on
fine cotton yarns entering France should be reduced, argues as follows:-
"Our cotton-spinners are still foolishly lamenting about the labour French
question. Actually, workmen's wages are undoubtedly lower in France acknow-
than in England. They say that the English workman does more. ledged.
work than the French one. I do not believe it. If it is so, why is the
advantages
Hours of
labour.
174
The Sheffield Chamber of Commerce
French weaver superior to the English weaver?
It is certain that we
have beaten the weavers of Coventry, who are disappearing before the
competition of the weavers of St. Etienne and Bâle, because we are
more skilful than they. Why should the French cotton-spinners be
inferior to the English? I am unable to understand it. Also the
duration of hours of work in England and France should not be
forgotten. The English workman works 56 hours, and the French
one 72 hours per week. Even, therefore, if the French spinner were
less skilful than the English, it seems to me that 72 hours' work are
at least an equivalent to 56.
"}
Scepticism
prevalent.
SHEFFIELD CHAMBER OF COMMERCE.1
The 24th annual meeting of the above Chamber was held at the
Cutlers' Hall yesterday. The Chairman, in moving the adoption of
the report, remarked-
There had been on the part of many in the
country, and in a less degree in Sheffield, an agitation as to whether
the trade of the country should be on the present system of free-trade,
or whether a sort of reciprocity duty should be introduced into our
English system more generally than it was at present. Whenever the
question had been brought before them, the majority had always held
that the present system of the commerce of the country as to free
importation of all kinds, not only of breadstuffs but of provisions to the
enormous extent they were now brought in, was beneficial to the
masses of the English people. There had been an effort made on the
part of very worthy and influential parties, not only in Sheffield but in
the country, to introduce some protective system for English products.
The population of the United Kingdom was so great, and the neces-
sities of the working classes so paramount, that he hoped nothing would
be done on the part of that Chamber or by the Legislature which
would have the effect of going back to a system of restricting the
restrictima ample supply of food which now came into the country. In resigning
Must not
of food.
his seat this year as president, he wished to state that up to the
present the Council had always maintained the free intercourse of
nations, and knowing they would elect another president, he trusted
the same policy would be pursued.
Mr. William Smith seconded. He was very glad there was a
prospect of his friend Mr. F. Brittain being placed in the position of
Sidcut fra president of that Chamber. It was a critical time, and Mr. Brittain,
Brittain
elected Prc-
why.
from his accurate knowledge of everything relating to foreign tariffs,
would be able, as president of the Chamber, to act with greater force
and efficiency than an ordinary private member would.
He came
upon a couple of letters of Cobden's, written at a time when the
Chamber was taking action with regard to the French Treaty. . .
Mr. Cobden. Mr. Cobden sent the following letter: "The new tariff, which is
now all but completed, will, I hope, accomplish to a large extent this
result. It will be far from a perfect measure. Considering that
this is the first step from a prohibitive system, I do not think that
more could have been expected. . . ." It was rather amusing, said Mr.
Smith, to read that letter by the light of subsequent events.
1 From the Sheffield and Rotherham Independent, January 20, 1881.
-
•
•
175
EXTRACTS FROM THE SHIPPING AND MERCANTILE
GAZETTE'S LETTERS ON SHIPPING BOUNTIES.
PARIS, Jan. 1.
·
Bounties
The report of the Senate Committee on the Merchant Shipping Bill Report on
has now been published in the Journal Officiel. ・ ・ The Senate Com- Shipping
mittee proposes to adopt the Bill just as sent up from the Chamber of Bill.
Deputies, with the exception of Art. 9 for bounties on navigation, in
which some modifications are introduced. Others were suggested,
but were abandoned in consequence of difficulties of application.
Among the latter was a proposal by M. Dupuy de Lôme to extend the
bounties on navigation to ships trading to European ports, and for
which it would have sufficed to strike out par. 2 of Art. 9, which
declares that the bounty applies exclusively to oversea navigation.
(long cours), meaning ships bound to or from ports not in Europe
or the Mediterranean. That Senator proposed that the bounty should
be the same for all foreign voyages, and the reasons he gave were
these:-The first paragraph of Art. 9 states that the bounties are Justification
granted as a compensation for the charges imposed on Merchant of bounties.
Shipping for the recruitment and service of the Navy, and as the
European navigation was subject to the same charge of providing
seamen for the fleet, it had a right to the same favour. Further-
more, it had to compete with foreign shipping, and was also in a state
of decay. The same reasons, therefore, existed for the bounty. The
Ministers who attended on the Committee, however, pointed out the
practical difficulty of calculating the bounties for shipping making
frequent short voyages, and both the Committee and the proposer of the
amendment admitted that it would be impossible to introduce the
amendment into the Bill: They, however, agreed that some relief
should be granted to ships engaged in European navigation, and
proposed that this should be attained by the reduction of certain dues
paid by shipping. The example was quoted of the Fraissinet
Company of Marseilles, which paid 74,000f. a year in Consular fees. Consular
A steamer on the line from Marseilles to the Danube paid in less than
a week a sum of 262f. to nine different Consuls, while a vessel of 300
tons, making forty vogages a year from Nice to Genoa, paid 6000f. for
quay dues alone. Those consular and quay dues were fiscal charges
created by French legislation, and the Legislature might reduce them
by charging, for example, those dues only once a month, or by allow-
ing owners to compound for them. The objection was raised that a
reduction of the quay dues would be of more advantage to foreign
shipping than to French, and that it would be difficult to ask the
Treasury to make a sacrifice of those dues when it was about to accept
the charge of bounties on shipbuilding and navigation. The Com-
mittee, in consequence, agreed to postpone that question, and confine
itself for the present to the solutions on which an accord had already
been arrived at with the Government. Paragraph 3 of Art. 9 was,
however, modified by an amendment of M. Dupuy de Lôme accepted
by the Government. The text, as adopted by the Chamber, made no
fees.
-
!
t
176
The French Senate.
encourage
should be
bona fide
French.
distinction between ships built in France and foreign-built ships which
might be naturalised, after the promulgation of the law, in order to
profit by the bounty on navigation. The Senate Committee and the
Government coincided in the fear that by means of certain combina-
tions a navigation which would be French only in appearance might
be created under the French flag. As the sacrifices to be made by
France must the Treasury were intended solely to develop French national ship-
her own ping, those sacrifices ought not to be diverted from their object to
shipbuilders. the profit of shipping which would only navigate under the French
fited ships flag by eluding the law. France could only be considered as really
possessing a national mercantile navy when the great shipyards
necessary for its construction existed on French territory. It was
therefore decided that foreign ships imported and put on the French
register after the promulgation of the law should only have a right to
one-half the bounties fixed by the law. The restriction would, it was
said, become an impediment to owners who wished to earn im-
mediately the full bounty only allowed for new vessels, as they would
be compelled to procure their ships from French builders only. But
to that objection the reply was made, that the impediment—which
should not be exaggerated, as French builders could turn out more
than 53,000 tons of new steamers in less than two years—would,
nevertheless, procure a great advantage in reviving a great branch of
trade which was necessary for the security of the country. The Com-
mittee, in its report, protests against the idea that the limitation of
the full bounty to French-built vessels formed a second bounty on
shipbuilding, arguing that the bounty on shipbuilding created by
Art. 4 of the Bill was only the reimbursement of the duties paid on
the materials, and that the application of the amendment would not.
have the effect of creating a monopoly for French builders, as they
would still have to compete with foreigners, for in many cases the
lower cost of foreign-built ships would compensate for the reduction
in the bounty on navigation. Another amendment, proposed and
voted by the Senate Committee, was the suppression of the last
paragraph in Art. 9, giving 20 per cent. of the bounty on navigation
Invalid Sea- to the Invalid Seamen's Fund, to increase the pensions of seamen on
men's Fund.
Pensions.
the naval inscription. That clause was introduced into the Bill during
the discussion in the Chamber of Deputies, in order that the crews, as
well as the owners, should benefit by the bounties. Several objections
were now raised to this clause. The first was, that the increase in the
seamen's pensions was a permanent necessity which should not be met.
by a temporary measure, as the bounties now proposed are to be
granted only for a period of ten years, which was considered sufficient
to revive the prosperity of French merchant shipping. There was,
besides, a Bill before the Chamber of Deputies, presented by MM.
Gambetta and Rouvier two years ago, for increasing seamen's
pensions, which was reported on favourably in January last, and is
now on the order of the day for discussion. In the next place, this
appropriation from the bounty would be of no advantage to seamen,
as it would only diminish by as much the deficit in the Seamen's
and the French Shipping Bounties.
177
Pension Fund, borne by the State, and now amounting to thirteen
millions a year.
It was, indeed, intended that the sum taken from
the bounty should form a supplement to the pensions, but in that case
all the seamen inscribed, even those engaged in the coasting trade,
would share in a benefit earned by and belonging to oversea shipping
alone. The Ministers of Commerce and Marine both pointed out that
the result of this deduction of 20 per cent. in favour of the Seamen's
Pension Fund will be illusory, and, on their recommendation, the Seamen's
Senate Committee struck out the clause. Seamen would, besides, it was wages would
shown, profit indirectly by the bounties granted to owners, for as the
rate of wages, which varied from 50f. to 80f. a month, rose with the
increased demand for seamen, if the law produced the expected result
of developing French merchant shipping, wages would naturally rise.
rise.
Estimate
Appendices to the Report calculate the probable cost of the two
classes of bounties, on shipbuilding and on navigation, to the State.
First, with regard to the former. The effective of merchant shipping
on the 31st December 1879, consisted of 14,434 sailing vessels of
676,894 tons, and 599 steamers of 255,959 tons, and 72,000 horse-
power. Estimating 1-13th of the sailing ships and 1-20th of the
steamers to require rebuilding every year, the bounty would amount of cost.
to 1,604,400f.; but as the effect of the bounties on navigation would
probably be to cause an increase of 80,000 tons in the steam fleet in
two years, the bounties on shipbuilding would amount annually in the
first two years to 4,435,000f. In the third and following years the
amount would not exceed 2,000,000f. The bounties on navigation
would, on the contrary, continue to increase from year to year. In
estimating their amounts, it is supposed that a steamer navigates in
oversea voyages 36,000 sea miles annually, and a sailing ship 12,000
miles. A new iron steamer would therefore earn 54f. per ton in the
first year, and the bounty would decrease with the age of the steamer
until the twentieth year, when it would only receive 18f. per ton; the
bounty would then cease. A new sailing ship would receive 18f. per
ton in the first year, and 6f. in the last. Calculating, therefore, as for
the bounties on shipbuilding, that two-thirds of the new tonnage
would be built in France and one-third abroad, the bounty on naviga-
tion would amount in the first year to 4,140,000f.; in the second to
5,940,000f.; in the third, when all the 80,000 tons of new steamers
would be afloat, to 7,740,000f. From that time the effects of the new
law will have been produced, and the subsequent increase would be
confined to the normal and regular progress of the shipping trade, so
that in the tenth year, when the bounties would cease under the pro-
posed system, the amount of the bounty on navigation would have
reached the maximum sum of 8,440,000f.
A steamer's
earnings.
January 5, 1881.
Certain suggestions made by those who, like M. Dupuy de Lôme,
desire to carry the principle of protection to French shipping even
beyond the proposals in the Bill as it came before the Chamber of
M
178
French Senate's Proceedings
Deputies, have been abandoned by reason, as it is said, of the difficulty
involved in their application. For example, the original Bill had
proposed that the system of bounties on the long cours or oversea
navigation—that is, on voyages to and from ports not in Europe or
the Mediterranean,--Senator Dupuy de Lôme proposed to extend this
provision of the Bill to all foreign voyages, including voyages to
European ports, on the ground that, as the bounties would be granted
as compensation for charges imposed on merchant shipping for the
recruitment and service of the navy generally, ships employed in the
European navigation were equally entitled to consideration with those.
employed in the long-voyage trades. This proposal, which was really
an attempt to extend the bounty system to shipping under the French
flag everywhere, has been rejected by the Senate Committee, at the
instance, it is said, of the Ministers who sat on that Committee, by
reason of the difficulty, if not the impracticability, of calculating the
bounties for shipping making short voyages; and it has been proposed
by the Committee, as an alternative, to reduce in favour of such ships
the consular charges and quay dues; but the consideration of this
An effect of proposal has for the present been deferred-for the reason, perhaps,
treaties.
that the ships of those nations having treaties of reciprocity with
France would be entitled to the like remissions in the matter of port
charges which might be accorded to French vessels. M. Dupuy de
Lôme has been more successful in inducing the Committee to adopt
his proposal to limit the bounty, in the case of foreign-built ships
imported and placed on the French registry, to one-half of the bounty,
to be fixed by law. The object, of course, is to discourage the pur-
chase of foreign-built ships by making the employment of such ships a
losing game to the French owners who may purchase them, and to
throw the supply of shipping required for the French trade into the
The United hands of the French shipbuilders. But so long as the productive
Kingdom
will retain
business in
building
ships for
France.
powers of this country are so much greater than those of France, more
especially in the matter of shipbuilding, and unweighted by any
import duties on shipbuilding materials, it will probably be found
that a French shipowner can supply himself in England with a ship
suited to his purposes at a cost so much less than he could procure
the same description of ship from a French builder, that he may afford
to disregard the difference in the bounty which will be allowed to the
owners of a French-built ship. Indeed, this view appears not to have
escaped the notice of the Committee, for they have used it as an
argument against the assertion that the reduction of the bounty on
navigation in favour of French-built ships will give a monopoly to the
French shipbuilder. It is certain that, in view of the passing of this
as to the French Shipping Bounties.
United King-
dom.
Bill, there has been a stir amongst French owners to procure English-
built ships. French agents have for some time been endeavouring to ships con-
procure ships-notably at the northern ports. Very large conditional tracted for in
contracts have been entered into with English builders; these contracts
would, of course, go off should the French Merchant Shipping Bill not
become law. But, as it is now tolerably certain the Bill will pass the
Senate, these orders will go through, and furnish, it may be hoped,
a handsome profit to those builders who have secured them. So far,
then, the effect of this Bill has been to impart a considerable impetus
to shipbuilding in this country. For the rest, we must wait and see
what the effect of the new law may be. Lord Granville, on a recent
occasion, described the French Bill as a "very foolish proposition, "Very
absolutely contrary to sound finance and common sense." The French
Government, having by large duties enhanced the price of everything
that makes a ship, and having utterly failed in securing the anticipated
results of that policy, now propose to recover the lost ground by
making the French taxpayer pay money to the French shipowner, in
the hope that the expected increase of commerce and the revenue
thence arising will reimburse the French Exchequer. Let us look for
a moment at the situation as regards the French maritime trade.
That trade is a large and important one, and has rapidly developed by
reason of the liberal commercial policy introduced under the empire.
Indeed, it is said there is not sufficient tonnage under the French flag
to supply one-half the carriage required. For that carriage France is
beholden to foreign tonnage. A Bill is now before the French Legis-
lature which aims at rendering the employment of that tonnage
impossible. The shipbuilding yards of France can turn out, it is said, French ship-
some 25,000 tons of shipping a year; but what is to become of the
French oversea trade while France is endeavouring to procure the
requisite supply of tonnage for that trade if foreign ships are with-
drawn? This is a question which, it may be, the French Government
have considered. If they have not, and have no further scheme
for meeting the contingency, one of two things will occur either
the bounties system must be abandoned, or the maritime trade of
France will sink to a point from which, in our time, it will not
building.
recover.
179
-
According to a telegram from Paris, M. Tirard, Minister of Com-
merce, has, in answer to an inquiry from a private committee of
shipowners, just furnished the following information concerning the
modifications to be introduced in the law now in force on merchant
shipping :—First, Captains of all sailing vessels of 80 tons or less, and
"
180
The French Shipping Bounties Bill.
all steamships of less than 100 tons, will be exempt from the obligation of
taking a pilot if they habitually frequent the port, and are accustomed to
Inspection. navigate the river; secondly, the inspection of merchant vessels, which
costs 45f., will no longer be compulsory, unless six months have
elapsed since the last inspection, or when the ship suffered damage ;
thirdly, the tax on contracts of sale and purchase of vessels will be
reduced to a uniform duty of 3f.; fourthly, the owners of French
ocean sailing or steamships will receive a bounty destined to compen-
sate them in a certain degree for the inconvenience they are put to by
the recruiting of their sailors into the French navy. This bounty will
be granted only during a period of ten years, and it is fixed at If. 50c.
per ton of the ship's tonnage and per 1000 miles travelled over. In
return, the State will have the right, in case of war, to put these
vessels in requisition. With regard to the merchant ships which may
be built according to the plans approved by the Minister of Marine,
that is to say, which may be so constructed as to render their trans-
formation into ships of war easy, their owners will have a right to an
increase of 15 per cent. in the bounty. Shipowners wishing to receive
Compensa compensation for the charges imposed upon them by the Customs
to builders. tariffs, which place them at a disadvantage with foreign shipbuilders,
will receive a bounty calculated on the tonnage of the vessels they may
build, varying from 60f. to 10f. per ton, according to the materials that
are employed. These modifications of the present law have been
voted by the Chamber of Deputies, and are now before the Senatorial
Committee, and M. Tirard entertains no doubt of their being accepted
by the Upper Chamber. In answer to a letter from a member of the
English Merchant Shipping Committee, requesting that this question
might be discussed with as little delay as possible, the Minister for
Foreign Affairs has given an assurance, first, that it will be dis-
cussed in February; secondly, that in the negotiations previously
entered into with England, all that had reference to merchant ship-
ping was reserved in order to leave perfect liberty to Parliamentary
action.
tory bounty
Bounty by
distances
run.
War.
M. Gam-
betta's organ.
In the French Senate yesterday, the Merchant Shipping Bill passed
by the Chamber of Deputies came on for discussion, and after two
speeches, one by M. Ancel, the reporter on the Bill, and the other by
M. Dupuy de Lôme, was declared urgent. The clauses were then gone
through, and the bill passed by 265 votes to 5, so that this im-
portant measure, on some slight amendments being assented to by the
Chamber, will now become law.
-
The Republique Française, M. Gambetta's organ, published yesterday
an article on the shipping bounties, which must dispel all hopes that
The overwhelming majority for it.
181
betta's organ
ist.
the Government or the Chamber of Deputies might oppose the addi-
tional protectionist clause inserted by the Senate in the Bill. That M. Gam-
journal not only approves of the bounties originally proposed, and takes is protection-
credit to the Republican Government for adopting measures for the
protection of French shipping which former Governments had
neglected, but also defends the reduction of the bounty to one-half for
foreign-built ships. It affirms that the extension of the effects of the
Bill proposed by the Senate can meet with no objections, and that
the bounty for foreign-built ships should be less than for ships of home.
construction, as the sacrifices the Bill will impose on the Treasury are
exclusively intended to develop French national shipping. The article
terminates with the desire that the Bill may be definitely voted and
put in execution without delay.
PARIS, Jan. 28.
This Bill came before the Senate yesterday, and the accord was so
complete on the measure, that the general discussion was got through
and all the eleven Articles were voted in the one sitting. It would be The majority.
incorrect to say that there was a discussion, for all the speakers were
on the same side, and not one senator stood up to oppose the Bill,
although in the final division, that the Bill should pass after the voting
of the Articles, five members divided against it. They, however,
formed a very small minority against the 258 who composed the
majority. It must also be mentioned that an amendment was proposed
that vessels ordered abroad, and which had been commenced before
January 1, 1881, should not be disqualified from receiving the full
bounties on navigation. This amendment was, however, opposed by
the Government, and was rejected without a division.
At the opening of the sitting, after some formal business had been
disposed of, the President announced that the order of the day was the
discussion on the Merchant Shipping Bill.
Decline of
ping.
M. Ancel said the decline of French shipping was not contested.
The law of 1866, abolishing the differential duties, had abandoned French ship
French shipping to foreign competition. Other branches of industry
had preserved, under the Treaties of Commerce, certain compensatory
duties, which many trades considered insufficient, but those rights were
inscribed in the Treaties. No reservations were, however, made for
merchant shipping, which, nevertheless, still bore all the burdens with
which it was charged when protected. Merchant shipping was one of
the first elements of the national force and prosperity. It was the only The school
practical school for the formation of seamen for the navy; but its very for seamen.
existence was imperilled. In 1872 the National Assembly, anxious to
apply a remedy, voted the revival of the differential duties on imports
by foreign ships (surtaxe de pavillon), the surtax on direct imports (sur- The surtax
taxe d'entrepôt), and the duties on the naturalisation of foreign-built on direct
imports.
182
The French Mercantile Marine Bill:
Austria and
its effect.
ships. The surtaxe de pavillon was to be limited to the indirect naviga-
tion, or to ships of third Powers; that is to say, the produce of a
country could be imported by ships of that country without payment
of any surtax, such as American cotton by American ships, or English
coal by English ships. But the imports from countries which had little or
no shipping were secured to French vessels, because ships of other countries
could only engage in the carrying trade by paying the surtax. The surtax
was 15f. or 20f. per ton, and on such an article as coffee, for example,
the surtax only amounted to 1c. (1-10d.) per pound. The increase of
price to the consumer was insignificant, while the benefit extended to
Conduct of all the branches of maritime trade. The refusal of Austria to relinquish
one of the clauses of her Treaty of Commerce-of little importance to
herself, but the benefits of which were claimed by all Powers which had
a right to the treatment of the most favoured nations-rendered the
application of the law impossible. The previous régime was in conse-
quence re-established by another law in July 1873; but, at the same
time, the National Assembly, to affirm the necessity for protection for
shipping, decided that a committee should be appointed to study the
most efficacious means of assisting merchant shipping, and assuring its
prosperity. The committee was named, but until now various circum-
stances had prevented the engagement entered into from being carried
out. The evil had in the meantime become aggravated, and the
shipyards are idle. The Customs returns proved with sad but incon-
testable evidence in what a degree the share of French shipping in the
French ship- navigation open to competition had now diminished. In 1880 the
Decline of
ping.
entries of French shipping were 10,208 ships, and 3,053,876 tons,
against 26,268 foreign ships, and 8,403,414 tons. The clearings were
7983 ships and 3,156,175 tons French, and 15,130 ships and 3,998,780
tons foreign. The proportion of French tonnage was therefore only
one to three, and if from that third a deduction was made for subsi-
dised steamers for the postal services which had become competitors
for freight with merchant shipping, the share was reduced to 20 per
cent., and France ranked only in the sixth place, while formerly she
was inferior to England alone. There was no want of seamen, as they
were to be found in abundance all along the coast, from Dunkirk to
Nice; but in consequence of the law of 1866, the sea no longer
afforded them the wages it formerly procured, and which were now
disputed by the shipping of foreign countries. It had been said that
capital would not engage in maritime undertakings, but capital would
always go where it could be employed with profit, and had only
abandoned shipping because it did not afford remuneration. Only let
prosperity be restored to the shipping trade, and capital would not be
wanting. France had not in abundance, like the Americans and
ward freight English, such outward freight as cotton and coal, which always sup-
Coal as out-
plied cargoes for ships. It too frequently happened that the freight
homeward had to bear all the costs of the ship, or an outward freight
had to be sought elsewhere. That inequality might be remedied by
the surtaxe de pavillon, which would naturally diminish the competition.
Seamen
abundant.
183
its progress through the Senate.
with its
for homeward freight to France. That means, which he believed to be
so practical, and, at the same time, so commercial, had, however, been
abandoned; the Bill before the Senate became the sole recourse for
French shipping, and for that reason was indispensable. What was A subsidy,
asked for was, no doubt, a subsidy; but if it was the only expedient objects.
that remained, the Assembly could not hesitate to employ it to restore
to the shipbuilding trade the activity that would give prosperity to so
many interests and employment to so many workmen in the ports.
France must avoid the great peril of depending on foreign countries
for the construction of her ships, and on foreign ships for her trans-
ports. A nation which ceased to build her own ships would soon lose
Her
its importance as a maritime Power. This France could not do.
geographical situation, her historical recollections, her grandeur in the
world, and her varied commercial interests, would not permit her to
accept such a situation. A means of averting the evil was proposed.
The Chamber of Deputies had consented to the financial sacrifice, and
the Senate Committee, in whose name he spoke, called on that Assem-
bly to realise the promise made in July 1873, and come to the aid of
merchant shipping by voting the Bill.
M. Dupuy de Lome also spoke in favour of the Bill, comparing it British Navi-
to Cromwell's Navigation Act of 1651, which, he said, was the founda- gation Act of
tion of England's maritime supremacy.
He entered into details to
prove that the bounty on shipbuilding was only the equivalent of the
duties or greater cost of the materials in France. He next adduced
figures to show that France, as a maritime Power, after occupying the
second place, had now fallen behind the United States, Norway,
Germany, and Italy, and had, besides, not the share due to her in her
own carrying trade. French freight he estimated to amount to 345
millions of francs annually, and France might gain a further 100 millions
in addition to the small share she now possessed.
M. Emile Lenoel also spoke on the same side, applying himself in
particular to show that the bounties were not in opposition to the
principles of free-trade.
M. Tirard, Minister of Agriculture and Commerce, then demanded
the declaration of urgency, a consequence of which was that a single
reading of the Bill would be sufficient for it to pass.
Urgency was agreed to.
Urgency
The general discussion was then declared to be closed, and the agreed to.
Senate voted successively the Articles of the Bill as follows:-
from pilot-
Art. 1. Exemption from pilotage is accorded to all sailing ships not Exemption
exceeding 80 tons, and to steamers up to 100 tons, when they are age.
habitually engaged in navigating from port to port and in the mouths
of rivers. However, on the demand of the Chamber of Commerce,
and after an inquiry in the usual form, public administrative regula-
tions shall determine the improvements to be introduced into the
present regulations, in the interest of navigation.
Art. 2. For oversea vessels the inspection prescribed by Art. 225
of the Commercial Code for a fresh cargo shipped in France, shall not
The boun-
ties.
184
The discussions in the Senate
be obligatory unless more than six months have elapsed since the pre-
vious inspection, or the ship has suffered damage.
Art. 3. The deeds or minutes showing a transfer in the ownership
of ships, total or partial, will only be liable to payment of the fixed
registration duty of 3f. Art. 5, par. 2, of the law of the 28th
February 1872, is abrogated in so far as it is contrary to the present
clause.
Service in
the navy.
Art. 4. As a compensation for the charges which the Customs
Tariff imposes on the builders of seagoing vessels, they are allowed
the following bounties:-
Per ton gross measurement.
For iron or steel vessels,
For wooden vessels of 200 tons and above,
For wooden vessels of less than 200 tons,
For mixed vessels,
For the engines put on board steam-vessels, and
the auxiliary apparatus, such as steam pumps,
accessories to motive power, windlasses, ventila-
tors worked mechanically, as well as for boilers
and pipes, per 100 kilos. (2 cwt.),
60f.
20f.
10f.
40f.
12f.
Are considered as mixed vessels, ships wood-bordered, of which the
framework and beams are wholly of iron or steel.
Art. 5. Any transformation of a ship having the result of increas-
ing the measurement, gives right to a bounty calculated on the above
tariff, according to the number of tons additional in the measurement.
The bounty is accorded for the engines and auxiliary apparatus put on
Renewing of board the ship after completed. When the boilers are changed, the
boilers.
owner of the ship is allowed a compensation of 8f. per 100 kilos. for
the weight of the new boilers without the tubes when of French make.
Art. 6. The bounties fixed by Arts. 4 and 5 are paid, after delivery
of the French register, by the Receiver of Customs, at the place of
construction, or the nearest to it.
Art. 7. Is abolished, the system of import of materials free of
duty, established in execution of Art. 1 of the law of May 19, 1866,
and Art. 2 of the law of March 17, 1879.
Art. 8. With respect to the ships on the stocks at the moment of
the promulgation of the present law, builders will only receive the
bounties fixed by Art. 4, subject to deduction of the Customs duties.
fixed by the conventional tariffs relative to foreign materials, of which
they may have obtained the free import for shipbuilding.
Art. 9. As a compensation for the charges imposed on merchant
shipping for the recruitment and service of the navy, there is accorded,
for a period of ten years from the promulgation of the present law, a
bounty on navigation to French sailing ships and steamers. This
bounty applies exclusively to oversea navigation. It is fixed per ton
nett measurement and per 1000 miles run, at 1f. 50c. for ships new
from the yard, and decreasing annually; 7c. for wooden vessels; 7c.
for mixed vessels; 5c. for iron vessels.
on the French Shipping Bill.
built ships.
The bounty is reduced one-half for vessels of foreign construction; Foreign-
but vessels naturalised before the promulgation of the present law are
assimilated, for the bounty, to French-built vessels.
M. Tenaille Saligny proposed the following amendment to this last
clause, which was not contained in the Bill sent up from the Chamber
of Deputies, but had been added by the Senate Committee :—“ Are
assimilated to French ships for the bounties on navigation—(1.) Ships
naturalised before the promulgation of the present law; (2.) Those
which, ordered abroad by French owners, shall be proved to have been
building on the 1st January 1881."
M. Ancel, on behalf of the committee, and M. Tirard, Minister of
Agriculture and Commerce, declared that they opposed the amendment.
M. TENAILLE SALIGNY.-The Bill as voted by the Chamber of Deputies
made no distinction with regard to the place of construction of the
ship, and owners have, in consequence, bought or ordered ships abroad.
The objection may be made that they might have ordered them of
French builders; but it must be remembered that the French ship-
yards are not in a position to supply immediately all the ships that
be required to reconstitute the French mercantile marine. Owners
were consequently reduced to the necessity of procuring them from
abroad. That is so true, that the committee solicited for ships im-
ported and naturalised before the promulgation of the law the same
treatment as for ships of French construction. Would it be just to
place in a different situation those who have bought ships or ordered
them abroad, and which have been commenced before, say the 1st
January 1881?
may
M. ANCEL.-But are there any?
M. TENAILLE SALIGNY.—I believe there are a certain number, and I
demand that those owners who have in good faith ordered ships abroad
should not be placed in a worse position than those who bought them
ready made.
185
THE MINISTER OF AGRICULTURE AND COMMERCE.-The amendment
was examined by the Government in concert with the committee, but we
decided not to accept it. The object of the Bill is to encourage ship-
building in France, and if the amendment were adopted, we should be
taking back with one hand what we gave with the other. M. Tenaille
Saligny is concerned for the contracts previously made; but every
economic law which has the effect of modifying the Customs legislation
of a country or special law like the present one, gives rise to a period
of transition which cannot be foreseen. There would, besides, be no
reason for fixing the date of the 1st January rather than the 15th or
any other, and it might be supposed that well-informed persons had
taken advantage of the amendment to give orders in time, while others
who had not been favoured with the information had not been able to
profit by it. The Bill had been maturely considered, and would afford
satisfaction to great national interests. They would, therefore, be
doing well to vote it as it stood, and not embarrass themselves with
exceptional cases.
The amendment was put to the Senate, and was not adopted.
Provision
for war.
The Econo-
mist's notice.
The Econo-
mist's expec-
tation.
The French Shipping Bill.
The remainder of Art. 9 and the following were then voted, viz. :
The bounty is increased 15 per cent. for ships built in France on
plans previously approved of by the Navy Department. The number
of miles run is calculated between the point of departure and point of
arrival, measured in a direct maritime line. In case of war, trading
ships may be requisitioned by the State. The bounty is not given to
ships engaged in the greater or lesser fisheries, to the subsidised lines,
or pleasure navigation.
186
Art. 10. Every captain of a ship receiving one of the bounties
fixed by Art. 9 of the present law, shall be bound to carry gratuitously
the letter-bags delivered by or addressed to the Post Office, in accord-
ance with the Consular decrees of 19 Germinal, An X. If an agent of
the Post Office accompanies the mails, he shall be carried gratis.
Art. 11. A public administrative regulation, containing especially
a table of distances from port to port, will determine the application
of the present law.
A vote was finally taken on the entire Bill, which was adopted by
a majority of 258 to 5.
FRENCH BOUNTIES ON SHIPPING.¹
On Thursday the French Senate passed, by 256 votes to 5, the
new Merchant Shipping Bill, the object of which is to stimulate by
means of bounties the French shipbuilding and shipping trades. It
is proposed to pay a bounty of from 16 to 60 francs per gross ton
upon all vessels built in France, in addition to a duty of 6 francs per
ton upon the engines and machinery of steamships, these payments
being professedly made as an equivalent for the import duties levied
upon shipbuilding materials. Then as to navigation, vessels in the
oversea trade are to receive a bounty of 1 francs per ton net for
every 1000 miles run, this payment diminishing year by year until it
ceases after 20 years in the case of iron and steel, and after 30 years
in that of wooden vessels. On foreign-built ships that have been
naturalised, only one-half of these bounties on navigation are to be
allowed, the object of course being to afford additional protection to
the French shipbuilder. As the Senate have made some alterations
in the measure as sent up to them, it must now go back to the
Chamber of Deputies for approval before it becomes law. There can
be little doubt, however, that the Lower Chamber will ratify with-
out much discussion the Senate's alterations, and we must expect
very soon to see this monstrously protective measure added to the
statute-book. But the effect of all such subsidies is to enervate those
who receive them. They make their recipients disposed to rely rather
upon Government help than upon their own efforts, and while in the
meantime the new regulations are pretty certain to do us injury, they
are likely in the end to be most hurtful to France herself.
The Senate commenced to-day the discussion of the Bill for en-
couragements to native merchant shipping by a system of bounties on
1 From The Economist of 29th January 1881.
187
in its passage through the Senate.
shipbuilding and navigation. The Bill was voted by the Chamber of
Deputies last session, but the Senate in Committee had further accen-
tuated the protectionist character of the measure. The Deputies pro-
posed two sets of bounties; the first one of 20f., 40f., or 60f. per ton
gross on ships built in France, of wood, mixed wood and iron, or iron
or steel respectively, and a further 6f. per cwt. on the engines and
machinery put on board; the second, a bounty on navigation per 1000
miles run in oversea voyages, decreasing in amount with the age of the
vessel, and which it was estimated officially would give from 18f. to
54f. per ton per annum for steamers, and from 6f. to 18f. per ton for
sailing vessels. But it was implied that foreign-built vessels imported
to France without the bounty on construction would share equally with
French-built vessels in the bounty on navigation if placed on the
French Register, and sailing under the French flag. The Senate Com-
mittee has, however, proposed an amendment to reduce the bounty on
navigation one-half for foreign-built vessels. This amendment is in-
tended to destroy the trade of shipbuilding in England for French
owners, which is increasing in importance, as the imports of iron.
vessels from England were 46,248 tons in 1880, against 16,554 tons Tonnage
in 1879, and 12,568 tons only in 1878. These bounties are to be built in the
granted as an experiment for ten years.
United King-
dom for
France.
I
From the Shipping Gazette of February 1, 1881 :-
bounties.
Our impression of Saturday contained the text of the French
Merchant Shipping Bill as amended in the Senate and agreed to by
the Chamber of Deputies, and it is now the law in France. It is
quite unnecessary to refer to the amendments made in the Senate, as
they do not appear in any way to touch the principle of the measure,
which is one of undisguised and almost unqualified protection to
French shipping. The bounties on shipbuilding and on navigation
are the only features in the new law in which foreign States have any
interest, and these have been finally adopted as they were agreed to
by the Chamber of Deputies. Henceforth the builders of sea-going French ship-
vessels in France can claim bounties varying from 60f. to 40f. to 20f. building
and to 10f. per ton of gross measurement, according as the vessels are
constructed of iron or steel, of composite materials or of wood; while
for engines put on board steam vessels, and for auxiliary apparatus,
"such as steam pumps, accessories to motive power, windlasses, venti-
lators worked mechanically, as well as for boilers and pipes," the
allowance is 12f. per 100 kilos, equivalent to 2 cwt., and these bounties
extend to any transformation of a ship which increases the measure- Transforma-
ment, and may be claimed in respect of the number of tons added to
the tonnage of the ship; and when boilers are changed, the owner
will be allowed a compensation of 8f. per 100 kilos for the weight
of the new boilers without the tubes, when of French make. The Repairs.
bounties on navigation are those agreed to by the Chamber of
Deputies, viz., lf. 50c. per ton net measurement for ships new from
the yard, decreasing annually at the rate of 7c. per ton for wooden
tions.
188
The London Press
ships.
vessels, 7c. for mixed vessels, and 5c. for iron vessels. Vessels
Naturalised naturalised before the promulgation of these laws will be allowed the
benefit of these bounties as if they were French vessels; while as
regards all other foreign-built vessels registered under the French
flag, the bounty is reduced one-half. To this latter clause, which did
not appear in the Bill as it came up from the Chamber of Deputies,
and which seems to have been added by the Senate Committee, an
amendment was moved by Senator M. Tenaille Saligny to the effect
that the bounties should be extended to ships " which, ordered abroad
by French owners, shall be proved to have been building on the 1st of
January 1881;" but even this very moderate amendment was rejected
by the French Senate. In support of it M. Tenaille Saligny made a
few observations, which may probably be remembered by French
owners and the French Government in the time to come.
"The
objection may be made," said the Senator, "that French owners might
have ordered ships from French builders; but it must be remembered
that the French shipyards are not in a position to supply immediately
all the ships that may be required to reconstitute the French mer-
cantile marine. Owners are, consequently, reduced to the necessity of
procuring them from abroad. That is so true, that the Committee
solicited for ships imported and naturalised before the promulgation of
the law, the same treatment as for ships of French construction.”
The meaning of all this is evident, and will not be mistaken in this
country. The French shipowners require ships which all the bounties
given by the Bill will not enable them to purchase in the building-
yards of France at prices suited to their trades; while the bounties on
navigation will not enable them to keep foreign tonnage out of French
ports, and to reserve the oversea carrying trade to the French flag.
The reduction of the bounty by one-half in the case of foreign-built
ships is simply a gratuitous obstacle cast in the way of French owners
who require additional tonnage, and must prove a hindrance to the
development of the maritime trade of France, as the framers of this
ill-judged and needless measure will very soon find out.
The excuse
for the adoption at this time of the bounties system is that, as regards
the shipbuilding bounties, they are intended as a compensation for the
charges which the French tariff imposes on the French shipbuilder ;
and that, as regards the bounties on navigation, they are designed to
compensate the French merchant shipping for recruitment and service
Inadmissible in the navy. Both pleas appear to us to be insufficient, and unworthy
of statesmen as enlightened as those who have the present direction of
affairs in France. M. Dupuy de Lôme, indeed, whose efforts in carry-
ing this law through the Senate have not been unnoticed, had no better
analogy to adduce in support of the measure than that of our Naviga-
tion Act passed during the Protectorate in 1651, and which, he
contended, was the foundation of England's maritime supremacy.
Whether the Navigation Acts of Cromwell and of Charles II. really
gation laws. did conduce to the establishment of that supremacy may well be
pleas.
British navi·
Reduction
by half.
doubted; but, at all events, M. Dupuy de Lôme takes very inferior
ground for French shipping when he claims for it the adventitious aid
on the French Shipping Bill.
189
given to British navigation 230 years since. Such an argument,
employed by a distinguished member of the French Senate in these
days, might provoke a smile, but how it could convince the members
of any deliberative assembly is something which we cannot understand.
However, the French Shipping Bounties Bill is now the law of the Now the law.
land in France. Its provisions, while before the French Legislature,
were freely criticised here as unjust and unfair to foreign maritime
States, and especially to this country. We have now to meet, as best
we may, the provisions of the new law; and we shall do this without
the slightest misgiving that our manufacturing and maritime energy A question.
will be quite equal to the occasion.
From the Daily Telegraph, Wednesday, February 2, 1881:—
aims.
Almost simultaneously advices lately came to us from Paris and
from Washington to the effect that motions have been introduced
into the French and the American Senates with a view to regaining,
by legislative measures, the commercial position upon the ocean which Foreign
once belonged to the Tricolour and to the Stars and Stripes. In Paris
the French Merchant Shipping Bill was brought before the Senate on
the 27th of last month, and so complete was the accord in regard to
the proposed measure that, upon the motion of M. Ancel, who repre-
sented the Senate Committee on the subject, the eleven articles of the
new Bill were voted in one sitting. M. Ancel began by admitting
that the decline in French shipping could not be contested, seeing that
the law of 1866, by which the differential duties were abolished, had French law
opened the mercantile marine of France to foreign competition. He of 1866.
proceeded to show that merchant shipping is one of the first elements
of national strength and prosperity, as being the only practical school
for the formation of seamen to man the war-ships of the country when
necessity for their employment should happen to arise. Various
measures had, he added, been adopted by the Legislature to arrest the
decay which had set in since the fatal law of 1866 was passed; but
despite these tentative remedial enactments, the disease was still
actively at work, the result being that the shipyards of France were
doomed at present to uniform and all-pervading idleness. The Customs
returns afforded, he said, melancholy but incontestable evidence that Decline of
France, as the owner of mercantile ships, now occupied the sixth place French ship-
in the list of maritime nations, whereas formerly she was inferior to
England alone. There was no lack of French sailors, as they were to
be found in abundance upon the coasts stretching from Dunkirk to
Nice; but the sea no longer supplied them with the wages which were
once attainable. In order to remedy this alarming condition of affairs,
M. Ancel proposed, "as the sole resource for French shipping," that
bounties should be voted by the Legislature in order to encourage the
building of ships in the French dockyards. The Senate immediately
voted the eleven articles of M. Ancel's Bill by a majority of two
hundred and fifty-eight voices against the five which were raised in
opposition to this startling and certainly vigorous measure.
ping.
Singularly enough, Mr. Beck of Kentucky-one of the most prac-
tical members of the United States Senate-selected the same day, the
190
'The Telegraph' and 'The Statist.'
27th of January, for the delivery of an elaborate address, advocating
the admission of foreign ships to American registry. He asked, in the
words of an able book, written by his compatriot, Colonel Grosvenor,
"Does Protection protect ?" and showed that, since the conclusion of
States ship- the American Civil War in 1865, the English Union Jack had almost
Great decline
of United
ping.
driven the American Stars and Stripes off the ocean. Mr. Beck made
use of the well-worn arguments which have long found acceptance in
this country, showing that the first axiom of political economy is, that
a nation should buy in the cheapest and sell in the dearest market;
but his reasoning fell upon prejudiced and obdurate ears. Senator
Blaine rose immediately to controvert the pleas of his predecessor,
and his words derived additional weight from the generally prevailing
opinion that, in the forthcoming administration of General Garfield,
who on the 4th of next March will take his seat in the Presidential
chair, Mr. Blaine will fill the office of Secretary of State. In order to
Blaine's Bill revive the mercantile marine of the United States, Senator Blaine
for subsidies
to large
steamers
built in the
States.
strenuously opposed the "Free Ship Bill" of Senator Beck, and advo-
cated a large system of subsidies for American lines of steamers
carrying foreign mails. On the following day he introduced a Bill in
the Senate for the purpose of assigning large subsidies to American-
built steamers of the burden of three thousand tons or more. His
Bill echoes the views enunciated by the Boston Shipping Convention
of last October; and, having been strongly supported by Senator
Merrill of Vermont, was referred, as usual, to the Finance Committee.
It is hardly the province of Englishmen to discuss whether, in order
to abate the mischief under which the United States and France are
suffering alike, the remedial measures proposed by Senator Blaine at
Washington, or by M. Ancel at Paris, are more likely to be efficacious;
but perhaps we may be permitted to say that the suggestion of the
American Senator is more practical than that of his French rival.
THE FRENCH MERCHANT SHIPPING BILL.¹
The French Merchant Shipping Bill has now become law.
A bounty is given on shipbuilding, amounting for iron ships to £2, 8s.
per ton, and for wooden ships to 16s. per ton; that there is also a
bounty given on steam-engines, and on inserting steam power after
construction; and, finally, that there is a bounty given for ten years
on navigation, amounting for the first year to a frane and a half
per ton for every thousand miles navigated, and decreasing each year
after the first. Even from the point of view of the French Protec-
tionists, this Act must be regarded as injurious to the French mercantile
marine. . This Act gives a bounty for the building of ships which
ought not to be built. This must necessarily be so, because a protective
measure of the kind could not be carried without giving a sop all
round. If the builders and owners of wooden ships were denied the
protection granted to the builders and owners of iron ships, they
would combine with the other opponents of the measure to defeat it.
The whole shipping interest, therefore, had to be bribed, even though
1 From The Statist of February 5, 1881.
1
•
Edinburgh Chamber of Commerce.
191
the true interests of French shipowners require that many of them
should be got out of the trade as speedily as possible. The tendency
of the measure consequently is to keep ships at sea which ought to be
condemned, and to keep dockyards open which ought to be closed,
because all their appliances are now out of date. Still the bounty
granted to iron ships is very large-about 20 or 25 per cent. of the
average cost of building a ship on the Clyde. No doubt, therefore,
it will give a great stimulus to iron shipbuilding in France. . . . As
regards the bounty given to navigation, it is wholly and simply mis-
chievous. It will tempt men to send ships to sea for the sole purpose
of earning the bounty, whether they get a cargo or no. Some little
time ago a writer in the Journal des Débats proved elaborately that it
would pay the owner of a ship that ought to be condemned to send it
empty from Havre to New York and back again, simply to earn the
bounty thus granted. We do not think, therefore, that British ship-
owners or British shipbuilders need be very much concerned on account
of this protectionist measure.
EDINBURGH CHAMBER OF COMMERCE.¹
A meeting of this Chamber was held yesterday afternoon, the
President, Mr. Currie, in the chair.
FRENCH BOUNTIES ON SHIPPING AND SUGAR.
The chairman remarked that while the confidence of the people
of this country in Free-Trade was in no degree abated, they could not
shut their eyes to the fact that the French, instead of proceeding in
that direction, were now indulging, and were desirous to indulge still
further, in the luxury of bounties-a system tending to tax the people
for the benefit of a class, but which, under certain circumstances,
might have a very attractive aspect to a nation. In the present
instance, there could be no doubt that the French people, having The object of
suffered lately in their war with Germany, were strongly disposed to France.
do everything they could to rehabilitate themselves as a military and
naval Power; and to that, in a large degree, we were indebted for the
steps they were now taking in the direction of protective duties by giving
bounties to their shipping. In regard to the bounties on sugar, our
Board of Trade, in replying to certain memorialists, combated the The Board's
idea of countervailing duties, sheltering themselves under the fact that answer about
the effect of those bounties was to make a present to this country of sugar does
a million and a half sterling annually. The argument of the Board shipping.
was that, inasmuch as that was a large sum to be made a present of to
our people, and as the interest affected here was a comparatively small
one, the balance was in favour of Great Britain. They said the total
fixed capital engaged in sugar refining in the United Kingdom was
only about two millions sterling, and the workmen employed only
four or five thousand, of whom the largest proportion were unskilled
labourers, who might readily find employment in other directions.
Without expressing any opinion as to the validity of this argument,
one trod upon totally different ground in coming to the shipping
1 From the Scotsman of February 4, 1881.
bounties on
not apply to
192
Mr. Currie on Shipping Bounties.
Cunard
capital.
seamen,
interest. Here the property involved must be at least a hundred
Company's millions, the Cunard Company alone having a capital of about two
millions, and paying in wages £156,000 annually. It was clear, there-
fore, that although one might be disposed to disregard the interest of
a very small section of the population provided the whole body of the
people were gaining in a much larger ratio, it came to be a very
different question when the interest dealt with involved a hundred
Number of millions, and the people employed were 120,000 in number, deriving
wages to the amount of at least ten millions sterling a year. Irre-
spective, therefore, of any reference to first principles, but looking at
it as a question of practical importance, that which we might afford to
disregard in one case, we could not afford to disregard in the other.
But the matter now to be dealt with was one in which, so far as he
could see, there was no counterbalancing advantage. If we got cheap
sugar from the French, we could afford to pension off the men thrown
out of employment here, and still make a saving; but if our shipping
The shipping was put out of use, and our seamen thrown out of employment, it was
bounties.
quite clear there was nothing to pay for that. It was put not as if a
monopoly of carrying were going to be removed, and we were to get
cheaper freights in consequence of the trade being thrown open. We
were dealing now with a trade which had been an open trade, and
were objecting to its being made a closed trade, simply asking that the
doctrine of Free-Trade should as far as possible be maintained. The
shape which the French bounties had assumed was this: The French
Government brought forward a proposition that they should pay a
bounty to the constructors of hulls and engines of iron and steel ships,
of about £2, 8s. per ton on the registered tonnage, and something like
£5 per ton of the material used in the manufacture of engines and
boilers. When the question first came up, the shipbuilders on the
Clyde and elsewhere were not altogether disposed to take action,
because they saw their way to build ships for the French, which should
be taken under the French flag, and should then receive a bounty.
But a modification had since been introduced in passing through the
Senate, and they were now only going to give a diminished bounty to
vessels built abroad. The consequence would be that vessels, in order
to obtain the larger bounty, would be built in France, and hence the
disappoint- English and Scotch shipbuilders, who had expected in some degree to
Ship-
builders'
ment.
reap a harvest, would be disappointed in that respect. But it was not
merely a question of this bounty, which would operate against the
shipbuilders; there was a further bounty payable to the owners of
vessels on the running of their ships. It was absolutely a subsidy for
Antagonism all foreign-going French steamers. For every thousand miles they
ran they were to receive 1 francs per registered ton, which would
about cover all the running expenses of the vessel. The consequence
would be that in any foreign-going trade-and there could be no
question of home trade, because the French did not admit us to their
coasting trade, although we admitted them-in any foreign-going trade
British vessels, from whatever ports and to whatever ports, would be
running alongside of French vessels, which were subsidised to an
Edinburgh Chamber's important Resolution.
193
in the
amount equal to all their working expenses. Now, Free-Trade
certainly did not justify that; and when the shipowners of this
country complained of that, he thought they could scarcely be said to
be asking for any exceptional advantage; they were simply asking to
be allowed to fight the battle fairly, unaided, but without any undue
advantage being given to their rivals. When the Chamber first took
up this matter and memorialised our Government, it was in a pre-
liminary stage. It had since passed through the French Senate, with
certain modifications, by 258 to 5—a fact which, he thought, afforded The majority
a very curious commentary on the remarks made by Lord Granville Senate.
when he said it was an extremely foolish proceeding on the part of the
French Government, and that he hardly thought they were likely to do
anything so silly. The only difference, so far as he was aware, that
had been made in the original project was to diminish the bounty for
vessels built abroad. Our own Government, in dealing with the ques-
tion, intimated that the representations of the Chamber and the whole
subject would be borne in mind in the course of any commercial
negotiations between Great Britain and France. The question, Mr. Our naval
Currie went on to contend, was one not merely of the commercial but supremacy
of the naval supremacy of Great Britain. It was for a people like ours,
surrounded by the sea and almost entirely dependent for our supplies
as well as our security upon the sea, to watch carefully any measure
calculated to diminish the security afforded by our maritime supremacy.
In these circumstances it seemed the duty of the Chamber to streng-
then the hands of the Government as much as possible, and that, as
it appeared to the directors, could best be done by going on the same
lines as had been indicated by the chairman of the Glasgow Chamber.
Their feeling was that negotiations regarding an intended commercial
treaty with France ought not to be hurried on while so important a
question as this was staring the country in the face. He therefore
moved :-"That in view of the increasingly protective character of
French legislation, especially in respect to the proposed system of Unanimous
shipping bounties, it is inexpedient to conclude any commercial treaty against a
with France which shall have the effect of interfering with the free French
action of the British Government in regard to its fiscal arrangements."
affected.
resolution
treaty.
bribe.
Mr. Warrack seconded the motion. The amount of the proposed
bounties, he said, was perfectly unparalleled. On the construction in
France of a steamer such as was built at Glasgow or in the North of an immense
England, it would amount to something like 17 per cent. upon her
first cost. The further bounty on her navigation would in twelve
months amount to other 12 per cent. on the capital of the ship; so
that by the end of the first year after the ship had gone to sea, the
Government would have paid to the owners about 30 per cent. of the
original capital in the shape of bounty. It was chimerical to suppose
that our shipowners could carry on a trade against shipowers so sub-
sidised. We ought to keep ourselves free to take whatever measures
might be likeliest to counteract the effects of the bounty system,
free to choose whatever method may be thought best fitted for the
purpose.
N
Danger
from delay.
The Board
of Trade
answered.
Calculation of the cost
The meeting adopted the resolution unanimously. A speaker
read the following extract from a commercial circular received by his
firm
SAIGON, 27th November 1880.
Discriminat-
ing export
EXPORT DUTY.-From the 1st January 1881, the export duty on
rice will be raised to 15 cents per picul. It is proposed that exports
French pos- to France or French colonies by French vessels shall be exempt from
duty in a
session.
this augmentation.
A picture of
what may
come.
194
From Wm. G. Hale and Co.'s Circular :
A CALCULATION ABOUT THE COST OF BOUNTIES.
The following clever passages deserve perusal and fair con-
sideration:
LIVERPOOL, 8th and 9th Feb. 1881.
If the Gladstones and Northcotes of to-day refuse to recognise the
"signs of the times," the time will come when the people in general
will accept nothing short of a very highly protective tariff. A friend
of mine-a Radical-told me the other day that he no longer believed
in free-trade as at present understood and practised, and I believe
there are hundreds of similar cases.
The Board are of opinion that any nation which should employ
bounties extensively and on large industries such as iron, cotton,
wool, etc., would soon be bankrupt. Moonshine again! and for
several reasons :—
1. If a bounty of say 15s. a ton on French iron would have the
effect of producing for that iron the demand which we in England at
present have in some measure, and thereby cause thousands of tons of
iron to be mined and smelted in France, which would otherwise be left
undisturbed in the bowels of the earth, and consequently completely uncon-
ducive to French enrichment, do the Board mean to say that because the
French Government should give that 15s. per ton bounty, the French
nation (which had thereby produced, sold, and got the money for
thousands of tons more iron than would have been the case without
the bounty) would be made bankrupt?
2. Granting, for the sake of argument, that no one nation could
bear the expense of giving these bounties, what guarantee have the
Board that foreign nations would not divide the labour of destroying
our industries? Why, for instance, should not something after the
following fashion be done?
France destroys British sugar and shipping industries.
U. S. A.
iron and cotton
woollen and wooden
Germany,
Belgium
Russia
What more probable, if we wait with folded hands ?
iron and cotton
leather
""
22
""
""
در
"}
رو
>>
-
""
""
*
""
of Bounties.
3. My calculations are to the following effect :—
able calcula-
(a.) That a sum per capita of the joint populations of the A remark-
United States of America, France, Germany, Russia, tion.
Holland, and Belgium, equal to one-fourth of the average
amount paid per head by the people of the United Kingdom
in income-tax alone, would suffice to subsidise the manu-
factures of those countries, so that they would completely
extinguish every manufacture existing in these islands.
(b.) That the United States of America alone could do this
with a total bounty fund equal to a sum per head of
their population of 13 of what is here paid as income-
tax, say 6d. or 7d. a head [per £.]
(c.) Russia could accomplish it with ths.
France
""
""
1/1/20
195
11/
""
""
Germany
Of course, these are circumstances which make it impossible to fix
with certainty and to a trifle the amount which it would cost foreigners
to accomplish our ruin in this way, but this much is clear, that a foreign
bounty may destroy an English, and create a foreign productive power
of
many dozen times the amount of that bounty.
It is really too ridiculous to solemnly assert that a matter of a few
millions a year in bounties (say any number between £20 M. and
£100 M.) would make the great, powerful, and wealthy States I have
named-bankrupt! I doubt whether bounties are not economically
defensible in cases where they enable a product, saleable at say £20,
to be produced in consideration of an artificial aid of £2, when that
product would not else have been worth producing, and labour other-
wise unemployed. Again, bounties may be fairly spread over any
number of years, for instance—
question
The French have practically extinguished loaf-sugar making in A serious
England. Well now, supposing they were to discontinue the bounty put.
as no longer needful, do you suppose (as the Board of Trade do, and the
Cobden Club generally, for they 're all one) that our sugar refiners would
set up their works again because there might, for the moment, seem
the possibility of conducting their business with profit? Not a bit of
it!
"Once bitten, twice shy." The refiners would have sense enough
to recollect that as soon as they became dangerous again, the bounty
would be re-applied, and they would again be ruined.
"For the
public advantage, save the mark."
bounties
No, the effects of bounties will be felt long after they may have m effects to
been discontinued; the "terrorism" will remain, and our Board must, us if the
indeed, have a profound faith in the gullibility of Mr. Bull if they remain
imagine that he will allow himself to be ruined time after time in
order to illustrate the excellence of their flimsy cobwebs which they
please to term "political economy"-a political economy destitute of
the highest political considerations, and whose only economy is a sham
one.
Latitude of
opinion as to
judicious or
necessary
discrimina-
tion.
A CAUTION TO YOUNG LIBERALS.
From the DAILY REVIEW.
SIR, It is extremely desirable that the subject which I hoped to
introduce at the Liberal Association's meeting on Saturday should be
understood. It is perhaps to be regretted that I, in answer to the
noble chairman, said it concerned "shipping bounties" (I did not say
sugar bounties), for this expression was calculated to produce an im-
pression that I was about to take up the precious time of the meeting
with a subject alien to the business of the day, and in itself not of
primary importance. I had got as far as to say that I had attended
a meeting of working men, and found them unanimous in a cause
which I would mention. I was adding that a similar unanimity was
exhibited at a similar meeting on the following day (Thursday) at
Dundee, a meeting presided over by the Provost. The purpose of
these meetings was to memorialise Government in favour of counter-
vailing duties as a remedy for foreign bounties. If these bounties did
not go beyond the, to the United Kingdom, injurious bounties on
sugar, I might not have interposed. But Friday's newspapers told us
that, almost without a dissentient voice, the French Senate have
adopted the dreadful shipping bounty scheme, regarding which I have
spoken in a letter contained in to-day's Review. My object was and
is to call attention to the dangers, I will not say to the Liberal
party only, but to the Liberal movement of our time, from a diver-
gence which is developing itself, and which must not be allowed to
mar the unity of the party in consequence of our eyes being shut.
Liberal principles, of course, are wide enough to cover the economical
doctrines enunciated by Adam Smith and John Stuart Mill, with
Countervail- which the cry for countervailing duties is in accord. But there are
some politicians of the day who do not see this, and who, I fear, may
estrange the working classes by endeavouring to narrow the creed of
the party. The meetings to which I have referred, and previous
meetings, show that the working classes are becoming, or have become,
in consonance with many of their employers, sceptical about what
passes current as free-trade, and would like to see an inquiry made
through competent commissioners as to the French Treaty and
bounties, and they do not like the helplessness to which our country
is reduced by a strained application of theories in commercial negotia-
tions. I can testify that working men are more plucky than a large
number of the leaders of the party. As an instance of this, when I
incidentally used, at Thursday's meeting, the word "retaliation," it
brought down thunders of applause. I conclude with this observation,
that if our country is to retain her shipping and naval pre-eminence,
and, indeed, her commercial prosperity, something energetic, whether
consistent or not with the theories of certain persons among us who
have not yet investigated the question, will require to be done, and
done early. I see no inconsistency, nor do I think that the difficulty
of dealing with the subject, though great, is insuperable. One thing
ing duties.
Union
among
Liberals.
196
Working
men and
retaliation.
Freedom of opinion for Liberals.
New French Lines of Packets.
197
is necessary, that the Liberal press, or rather let me say the British The Press.
press, for in a matter so national party considerations are sunk, must
realise and help the people, and through the people, the Government,
to realise that we have arrived at a crisis when action, judicious and
efficient, must be resorted to. It was evident that the subject was
new even to the Liberal Association.—I am, etc.
DREGHORN, 31st Jan. 1881.
THE FRENCH BOUNTIES.¹
and silk
SIR,-In your to-day's report of the Leith meeting regarding
French bounties, I am reported as saying I wish to be protected against
bounties. Your readers, I hope, will understand that I am not a
sufferer therefrom individually. The country is suffering, and one of
its most important industries, the sugar-refining trade. That trade The sugar
is of such magnitude that, in spite of its being almost entirely driven manufac-
from its original sphere of activity, the making of loaf-sugar, it turns tures.
out a weight of manufactured goods about 700 times as great as the
whole weight of manufactured silks. No doubt, the silk-trade has
likewise, as an effect of the unfortunately-framed Cobden Treaty, been
reduced to about a third of the magnitude it had attained on the
average of the ten years before 1860. All this while, under the
chivalrous generosity assured them by the treaty, our French rivals
have been extending their manufacture of silk and their exportations
to the United Kingdom, which last year imported silks to the value
of thirteen millions and a third sterling, being nearly half a million
more than the year before. I asked the meeting to consider how
serious a loss of employment in our own country this indicates, un- Loss of em-
necessary and, so far as I can see, unrecompensed loss of employment
(which could be about as successful in turning out good work, as is
proved by the history of the trade in Edinburgh). Your report does
not advert to what was said in regard to the threatened shipping
bounties. The universal apathy as to these, however to be accounted
for, on the part of the interest directly affected and of the nation
which is to suffer by shipowners' cosmopolitanism, appears very strik- Shipping
ing in the light of the following paragraph, which I quote from a bounties.
memorial read by Sir Hugh Allan at the interview with Lord Gran-
ville:
ployment.
packet-
Already six new large companies have been formed in France to New French
run regular lines of steamers to New York, Canada, Mexico, South finers.
America, and Australia, and existing companies are increasing their
fleets."
66
It is only by throwing off the chains we voluntarily came under in
the French Treaty that we can secure a position wherefrom our
Government can hope to persuade the French to desist from further
progress with their most extraordinary bounty scheme. We must be
able to (what shall I call it ?) retaliate-that is, those neighbours who
1 From the Daily Review, 31st January 1881.
198
Resolutions of Associated Chambers.
are so largely profiting by the British markets for silk and other
manufactures that employ much labour being open to them, must be
made to feel that they are receiving a favour which might at any time
be withdrawn. The action of the intended bounties is in effect the
same-I will not say so unfriendly—as if a proprietor of an estate
were to seek to draw off his neighbour's pheasants by putting all along
and close to the march supplies of inviting foods, or as if the proprietor
of an establishment were to seek to draw away from a neighbour, one
with whom he holds intimate relations, the whole band of employés,
by letting it be known he will give them all indiscriminately a hand-
some advance in wages, or other tempting advantages. So far as I
know, no nation has ever before, either overtly or under the rose, gone
in like manner beyond its own borders to pick up, or rather to obtain
wholesale, the trade or the shipping of other countries. The presently
contemplated movement is evidently an aggression on what ought to
be considered the public domain, but while it is all that, it is much
more and worse, it is a proceeding directed against a single Power and
a friendly one—ourselves. I am not without hope that some of the
Scotland and old warmth of feeling towards Scotland subsists in France, and that,
consequently, representations made by the Scotch would have a good
effect in leading our good Gallican neighbours (cordiality with whom
this nation wishes, but can cherish only if well treated) to reconsider
their policy, and appreciate better the requirements of amity.-I am, etc.
France.
Compari-
sons.
Hours of
female
labour.
Effect of
short hours
of labour.
29th. Since the above was sent you, the telegraph informs us that
the Shipping Bounty Scheme has passed the Senate! Our Government
will now have to contrive how to counteract the wrong.
p
ASSOCIATED CHAMBERS OF COMMERCE.
LONDON, 2d Feb. 1881.-The annual meeting of the Association
of Chambers of Commerce was resumed. . . . On the motion of Mr.
Peters (Derby), seconded by Mr. Longdon (Derby), it was unanimously
resolved-"That, in the opinion of the Association, the restrictions
imposed by the Factory Act on women operate with such serious dis-
advantage on those manufacturers in which such labour forms an im-
portant element, that some of these latter have become extinct, or nearly
so, in this country.'
A resolution moved and seconded by the same gentlemen-" That
a committee be appointed, consisting of manufacturers in every im-
portant branch of British industry, to inquire into and report on the
effect produced by the reduction of the week's work to fifty hours, and
on the ability of British manufacturers to compete with their rivals
in countries where much longer hours prevail," fell to the ground, the
numbers voting being equal.
Thursday.-The members resumed. Mr. Behrens, Bradford,
moved "That the Association trusts that a readiness on the part
of Great Britain to rearrange her fiscal system will facilitate the
early conclusion of favourable commercial treaties with wine-grow-
Liverpool opinions of this Brochure.
N
ing countries, whose trade as well as ours suffers from the uncertainty
as to the conditions under which it may have to be carried on in
future. That to place our commercial relations with those countries
upon a fair and equitable footing, a great deal more will have to
be conceded by them than the most favoured nation treatment, Dissatisfac-
which in no wise can be withheld from a friendly country without tion with
a breach of international justice. That, therefore, Her Majesty's treaties.
Government be urged to insist in all treaty negotiations upon terms
which shall remove the injustice done to a great majority of British
manufacturers by the indiscriminating specific rates of most foreign
tariffs."
existing
199
On the motion of Mr. Sampson Lloyd, M.P., seconded by Mr.
Wilson, the following resolution was carried without discussion :—
"That in the opinion of this Association it is very desirable, in order Weighty
to facilitate public business, and to the attainment of sound and neces- support of
sary legislation, that resolutions which have been read a second time suggestion.
in either House of Parliament should be taken up at the same stage,
and proceeded with in the next ensuing session of the same Parliament,
-the petitions to be presented to both Houses of Parliament."
THE FRENCH BOUNTY SYSTEM AND FREE TRADE.¹
2
tial Liver-
Mr. R. A. Macfie has published a bulky pamphlet on the sugar An influen-
and shipping bounties allowed by the French Government.
He fairly pool opinion
states the case of the side he advocates-that in favour of an abroga-
tion of treaties, or of countervailing duties while the proposal of
giving bounties by a foreign government affects any branch of British
industry. Great hardships have been suffered by British sugar-refiners
through the French bounty system; but a countervailing duty would
so complicate matters that the remedy would appear to us to be even
worse than the disease. Nevertheless the question of free-trade is
quite open to review, as the conditions of the foreign trade of this
country now and at the time when the repeal of the Corn Laws took
place are very different. The question, also, whether our Government a fair doubt.
were wise in tying their own hands when making the French Treaty
in 1860 is well worth considering.
inquiry.
A good idea is thrown out by the author (p. 36) in suggesting a
commission of merchants, manufacturers, and economists to inquire at
the various great ports and seats of manufacturing industry on all
matters affecting commercial treaties. Before any negotiations are The sugges-
opened, we would suggest that a few shipowners might be added tion for an
thereto. We are willing to concede this much to Mr. Macfie's state-
ment of the case, that England need not necessarily lose by an abroga-
tion of the French Treaty. It must be admitted that, when it was
executed, alkalies and coal formed our staple exports to that country, Alkalies.
and were for some years after among the chief items on the list.
Now, Coal.
1 From The Liverpool Porcupine of February 5, 1881.
2 Cries in a Crisis.
Interesting Liverpool opinions.
however, France takes but a small quantity of our alkalies, while the
United States are far and away our largest customers, taking about
one-half of the entire annual export. Yet we have no treaty with the
United States. Such facts as these show, at least, that the various
questions and considerations affecting the subject of Mr. Macfie's
brochure really deserve a thorough threshing-out. Unfortunately, the
manufacturers of cotton goods take sadly little interest in the matter,
and betray a very unwelcome selfishness in their advocacy of free-trade
or reciprocity. The industry specially affected is thus left to fight a
long and wearying battle unassisted. How quickly the powerful
mill-owning interest pressed upon Lord Salisbury to abolish the Indian
import duties upon cotton is well known. What would they do if the
United States and France were, beside levying import duties, to place
a surtaxe de pavillon, and grant a bounty upon all their home-made.
cotton piece goods imported to Great Britain?
We regret that Mr. Macfie does not propound some system to
meet the difficulties he has so ably exposed, for the French Chambers
have just passed their Shipping Bill, granting bounties to native
shipping interests, and the Americans have introduced a bill into their
Senate on somewhat similar lines. How these hostile acts will affect
our shipowners remains to be seen. At present we monopolise five-
sixths of the carrying trade of the world, and the change of the ocean
transit trade from sails to steam will, of course, tend to keep it in our
hands. In spite of doubts and difficulties, most modern Englishmen
feel tolerably confident that, until the nations of the earth enter into
a conspiracy to place such differential rates upon British ships as shall
handicap us out of the race, the Union Jack will be the winning
colour. However, though the race may be won, it will not be without
severe trial and exertion; and for that reason we have endeavoured to
draw some little attention to the common cause and common danger
of the shipping, cotton, or sugar-refining industries. To their honour
be it said, that none of our great manufacturers are in the least afraid
of free-trade so long as it is really free all round. As free-trade is
undoubtedly a blessing to the masses of all nations, nothing remains,
Is this so? therefore, but to seek out the best means of obtaining it either by
persuasion or force.
Apathy of
cotton
manufac-
turers.
British
carrying
trade.
200
From the Liverpool Journal of Commerce, Feb. 2, 1881:-
This may be regarded as the climax of Mr. Macfie's argu-
ment, which is very closely reasoned throughout.
NOTE AS TO FOREIGN RELATIONS.
((
February 12, 1881.
>>
To-day's newspapers refer to an article in yesterday's North German
Gazette, which, in connection with our most unpleasant position as to
Afghanistan, speaks justly of the evils the United Kingdom suffers
through conducting foreign policy by party government.'
vious pages of this brochure indicate with sufficient clearness the
difficulty of obtaining at a political meeting due attention to a great
The pre-
The Press and Shipping Bounties.
the news-
paper atmos-
national subject on which one or other party in the State has adopted
as its own a definite line of policy. The spirit of party is un-
doubtedly one of the causes why even in our otherwise and on other
questions bold and well-informed newspaper press the vastly important Serenity of
national interests involved in the French shipping bounty scheme have
been scarcely mentioned among our news, and still less are discussed phere.
in leading articles. As I am not much of a club-attender, I do not
see very many newspapers. But this is pretty nearly exact, that,
except in the Shipping Gazette, and perhaps (although I am not sure)
in a Leith and a Greenock newspaper, I had scarcely seen any leading
article that directs attention to the matter until there reaches me
to-day the subjoined from yesterday's Liverpool Courier. I am sorry
that such truthful expositions should come chiefly from Conservative
journals, and should betray, as I fear must be admitted, the animus of
party. Notwithstanding the hard and possibly unfair hits which the
article contains, I produce it in its entireness, partly because I have no
choice of articles, partly because I doubt not the intelligent reader can
separate the chaff from the wheat, and partly because it enables me,
1st, to indorse heartily the German newspaper's salutary reflection,
and, 2d, to say a word (which I hope will not be considered an
impertinent one, being most true) in behalf of the Foreign Office.
That word is this. I put it in the form of questions: How could
Lord Granville negotiate, with any prospect of success, indeed without The Foreign
injuring the fair credit of his country, if he was forbidden, either
by colleagues' want of concurrence, or by uncertainty whether the
rank and file of the Liberal party would follow him, to say that
consequences such as are here and there shadowed forth in the various
extracts contained in the foregoing Appendix might require to be
taken into account? To whatever extent it may be a plea confirming
the German comment,-as to his Lordship personally, and evil as his
seeming backwardness may be thought, was he not warranted, if the
circumstances indicated in the previous question are realities, to stand
aloof rather than make very bad very much worse, unless, indeed, his
Lordship had thought the occasion is one demanding resignation of
office?
Secretary.
201
THE FRENCH SHIPPING BOUNTIES.¹
Our Government have been even more remiss than was at first
supposed in regard to the French shipping bounties. They have
repeatedly promised to do all that was possible to induce France to «Not
abandon the project for creating a mercantile marine at the expense proven.”
of this nation; but it now appears that Lord Granville and Sir Charles
Dilke have not made the most of their opportunities. On the con-
trary, they have failed to redeem their own solemn promises of
energetic remonstrance. The earlier summaries of Sir Charles Dilke's
answers to Mr. Ritchie on this subject omitted an important fact.
They made it clear enough that there was no longer any prospect of
1 From the Liverpool Daily Courier, 11th February 1881.
A Liverpool Paper's
the French being converted to British views on the bounty question.
Our neighbours have declined to accept the economic dictum that it is
unwise to burden the whole nation with the course of nursing special
trades or industries. They are anxious to create a mercantile marine
that shall be second to none in the world of commerce, and that shall
give them the highest naval status, and they believe the advantages
aimed at are worth the price to be paid. The effect of the bounties
will be to enable the building of ships in France cheaper than else-
the French. where, and to permit French shipowners to carry cargoes at lower
The aim of
rates than is possible by owners not supported by State subsidies.
The tendency of this must be to secure general preference for French
builders and owners, and to cause the British building-yards to be
deserted, while our ships either lie idly in dock or are transferred to
the French flag. The foreign bounties on refined sugar have com-
pletely destroyed this industry in Great Britain, and there is no reason
to suppose that the marine advantages which we possess will more than
counterbalance the effect of the bounties, and save our merchant
shipping from the fate which has befallen the sugar trade. In fact, no
one ventures to dispute that the premiums offered by the French
Government to cultivate the national mercantile marine are likely to
have a disastrous effect on both the British shipbuilding and carrying
trades.
Its effect.
202
ment.
With the inevitable ill consequences staring them in the face, our
Government seem to have taken the matter very coolly. They are
anxious, above all things, not to let the French suppose that they
doubt the triumph of free-trade over protection. They want to disguise
from the foreigner the fact that protection abroad is injurious to
British commerce. But making all allowances for this indisposition to
The Govern- expose our weakness, many members of Parliament must have been
startled when Mr. Ritchie elicited from Sir C. Dilke that " no com-
munication with regard to this matter has been received from the
French Government since the date of Lord Granville's despatch to
Mr. Adams of the 30th of July last, which has already been laid
before Parliament ;" and "that no written communication has been
made to the French Government on the subject since the month of
July," though there had been casual oral remarks during the commercial
negotiations. This reply possesses a special significance when it is
remembered that only two months ago a very influential deputation of
the shipping and shipbuilding interest waited on the Foreign Secretary
and the Under-Secretary on this very question. The gentlemen com-
prising the deputation, which included a strong Liverpool contingent,
were not protectionists, but were desirous that free-trade principles should
not be damaged by a further development of the bounty system. For
fear that whatever they said might be used against free-trade in the
French Legislature, they avoided making speeches to demonstrate the
obvious consequences of the projected subsidies. Lord Granville and
Sir C. Dilke both appeared convinced of the urgency of the subject.
They informed the deputation in the clearest terms that the Govern-
ment were fully cognisant of the importance of the question, and that
The ship-
owners'
deputation.
freedom of expression as to Bounties.
203
tions.
they would miss no opportunity for urging the views of England upon
the French Government. The deputation accepted this as a distinct
pledge that Ministers would leave no stone unturned to accomplish
the desires of the British shipbuilders and shipowners. But the answer Expecta-
of Sir C. Dilke to Mr. Ritchie shows that the Government have prac-
tically done nothing. They have not written a single despatch on the
subject since July, which we take to be a flagrant breach of faith.
Ministers who can risk dragging the nation into war for the sake of
what are called "oppressed nationalities" are indifferent when only the
interests of British ships and commerce are at stake.
be taken cuM
grano.
What will be thought by the members of the deputation when
they discover from Sir Charles Dilke that the promises with which
they were soothed were only made to get rid of them? It is not
likely that the matter will be allowed to rest where it is. If the
members who represent shipping communities do not move on the
subject, the shipbuilders and shipowners of Great Britain, and the
many thousands of workmen and sailors they employ, will invite the
Government to explain the indifference they have manifested for the
interests at stake. Our naval supremacy depends upon the mercantile
marine. With the loss of naval supremacy what will become of Eng- Charges to
land's position in the world? In the days of "polemics" her Majesty's bee
present advisers ridiculed the idea of there being any "British interest.'
They seem to be acting on the belief then expressed, "greater respon-
sibility" not having developed increased intelligence or patriotism.
But, on the contrary, they hoodwink influential deputations by specious
promises, which are made only to be broken. Her Majesty's Govern-
ment gave a distinct pledge to protest energetically against the unjust
fiscal system, but it now appears from the official statement of the
Under Secretary that during the whole time the shipping bounties
were before the French Chambers, they never wrote a single letter in
fulfilment of their pledge. This is not honest statesmanship, and the
working classes, whose wages are at stake, will no doubt take note of
the way in which the present Government "protect" their interests.
""
Elsewhere the same paper has the following on Financial
Reform :-
cial Reform
The evils which the Association are said to have combated-and The Finan-
against which they have spent money-are the agitation against Association.
foreign bounties, and on behalf of "the assumed interests of a few
industries," and the "wicked policy of foreign nations" in preferring
protection before free-trade. But the Association has been unable to
make converts among foreign nations, while manufacturers, shipbuilders,
shipowners, and workpeople are beginning to see that there is a good
deal of reason and common-sense in the arguments of the "reciprocal
free-traders."
204
French
General
Tariff Bill.
"Exam-
ples."
FEELINGS PREVALENT IN FRANCE.
The subjoined from the Times will appear to any politician who is
conversant with the subject eminently suggestive and instructive.
Once more, let me counsel freedom of action and power to raise taxes
both for securing our commercial and shipping interests, and to enable
our country, doing the right, to stand firm in any combination of
emergencies:-
PARIS, Monday, Feb. 14, 9.30 P.M.
In the Senate the discussion on the General Tariff Bill was opened,
two speeches being delivered, one by M. Feray, the well-known cotton
spinner and Protectionist, and the other by M. Fresneau, a Brittany
Legitimist, who contended that France, being more heavily burdened
than other countries and production consequently dearer, was at a
disadvantage in regard to her competitors, and, therefore, her pro-
ducers needed protection. M. Feray, who acted as President of the
committee, reviewing their labours, said that, though they had through-
out been guided by a spirit of moderation, they could not forget that
it was a general tariff they were making, and they had, therefore, had
in view the treaties of commerce which might have to be concluded.
They had had no thought of bringing back the country to the situation
that preceded 1860, but at the same time they did not deem the
treaties of 1860 a sacred ark which must not be touched. The authors
of the treaties of 1860 could not foresee the events of 1870 and their
consequences. They had also hoped that the example set by France
would be followed, which had not happened, for, on the contrary, most
countries had raised their tariffs. He cited different countries, and
mentioned that the United States, thanks to their high duties, had
paid off a third part of the debt they had incurred through the war.
He thought the Senate would not hesitate to vote rather high duties
when thereby an industry would be saved, for when the object was to
insure employment to French workmen there ceased to be parties in
the Senate and all were agreed. The discussion will be continued
to-morrow.
:.
205
TRADE WITH FRANCE.
Part of a letter in Daily Review of 21st February 1881 (answering
criticisms on the first edition) :—
count of our
trade.
This reduces the number of heads-presumably not favourably to
my argument to thirteen, viz., alkali, cotton yarn, earthenware, hard-
ware, machinery, seed oil, silk manufactures (of which France took in A poor ac-
1880 £534,000 more than 1875), and apparel, cotton manufactures, French
linen manufactures, woollen yarns, and woollen manufactures (of which
she took £1,624,000 less than in 1875). The total value she took of
these thirteen articles was £6,823,000 out of £126,112,000, the total
value of them sent to all the world. Deducting the increase from the
decrease, there is a net decrease in the five years on these thirteen
articles of £1,098,000, or about 14 per cent.
You go on to say that our import trade with France is not rapidly
progressing, as if the absence of rapidity is a matter for regret, which,
indeed, it might be if the importations were of produce which we much.
want, such as raw materials of manufacture, plain and useful foods, and
the like. But what are the facts? I will answer this question as
well as I can from the data of the Economist, which are disappointingly
meagre.
We imported the following, which I exhibit in three sections, the
first (1) containing articles which it is the obvious interest of this
country to import, the second (2) articles which it is the obvious
interest of this country rather to make at home, and third (3), articles
that cannot be classed as a necessary of life :—
1. Corn and flour, out of a total of £62,369,000 from
all countries,
Unrefined sugar,
2. Paper,
out of a total of £18,449,000 from all countries.
Certain silk manufactures,
out of a total of £9,846,000 imported from all
countries (out of nearly £3,500,000 comprehend-
ing other sorts of silk manufactures, the propor-
tion we draw from France is not given),
Refined sugar,.
out of a total of £4,436,000.
£245,800
145,000
•
149,000
7,184,000
2,339,000
3. Wine,
£3,287,000
Of woollen manufactures whence imported the countries are not
given, and linen manufactures are not mentioned at all.
These figures are unquestionably extremely incomplete; for
instance, they do not distinguish our imports of spirits from France,
but, as they are all that the Economist supplies, they are as unques-
tionably fair. In connection with the figures of British exports to
France, can any one read them without a conviction being deepened
on his mind that she is profiting unduly by the Treaty In order
that an adequate conception may be formed of the magnitude of her
Answers to Criticisms.
advantage, recourse must be had to the actual Board of Trade tables,
which I do not possess, or to the résumé for 1879, contained on pages
70-73 of Cries in a Crisis. Any person who studies either of these will
see that we are allowing France to manufacture for us a great many
articles which we could as well, or about as well, and with great profit
to ourselves, produce or manufacture at home. In other words, we are
transferring to her an immense amount of valuable employment for our
population which we have, or could acquire.
You close your criticism with the following words:" The first
result of its proposal would be to make the articles which we buy from
France dearer to the British consumer, who, by the fact that he buys
them, shows that he needs them." Confining my attention to those
articles which belong to the second and third sections, who gets the
benefit of extremely low duties on wine? Undoubtedly the people.
who are well-to-do in the world, the very people who, if we adopted
the sound principle of taxing luxuries, would voluntarily bear more
than they are bearing now of taxation. Wine is an article specially
suitable for taxation, inasmuch as it is not made at home. You speak
of the British consumer, the spender, but every man is a spender.
He spends, however, in proportion to his income, for he is an earner,
or ought to be an earner or worker. Wise statesmanship, therefore,
aims more at the multiplying of sources of income and augmenting its
amount than at facility for spending. Nobody will object to the needs
you speak of being supplied, and supplied at moderate prices, even
although we extend the term so as to include luxuries; but everybody
will surely admit that, if these needs can be supplied in a manner that
will increase the employment of our own population, that is an object.
worthy of earnest endeavours. You do not contradict, I am glad to
Producing at see, the contention that, seeing there is plenty of room in our country
home.
for erecting more manufactories on, it is only as an immediate and
temporary result that the articles I refer to might be (what you call)
dear. If dearer at all, they would not be much dearer; for what I
plead for is a small duty that will give a tilt or turn in favour of our
own manufactures-that is to say, be an equivalent to countervail
factitious, law-created superiorities which foreigners enjoy in several
respects, mentioned in my brochure, including among these, if you like,
reasonable recognition of the happy fact that British artisans have
higher wages and live at more expense-that is to say, have greater
advantages within their reach—than the artisans with whom they are,
under miscalled free-trade, obliged to conduct unequal competition.-
I am, etc.,
Low duties
on wine.
206
DREGHORN, February 17.
207
LETTER TO THE EDITOR OF THE NORTHERN WHIG.
tion.
SIR, I have read with interest your strictures on
Cries in a Crisis. You call it "mainly a collection of
documents bearing on the question of free-trade;" and so
it is, but with an object, viz., to warn against another
French Treaty, in harmony with a resolution unanimously
adopted by the Edinburgh Chamber of Commerce.
You say,
"Mr. Macfie is professedly a protectionist; "
and so I am, of a sort, and on new lines, as well as with
assigned limits. I go for preserving our manufacturing A qualifica-
industries,-on certain business principles, chiefly this one,
that the equality which free-traders contend for does not
exist and must be sought by imposing retentive or com-
pensatory duties high enough to prevent our industrials
(masters and men) from suffering through disadvantages,
law-created or law-recognisable, which they must needs
endure, and sufficient to give a kindly turn of the beam
towards them such as they are entitled to as fellow-
subjects, yet a turn incomparably smaller than the exces-
sive favour which is lavished on their rivals by foreign
Governments.
S
prosperity.
You say truly that "it is probable that the United Our recent
Kingdom will soon stand alone as the sole representative
of a system which has undoubtedly contributed in no small
degree to the building up of our industries and commerce.'
On this let me remark, however—
1. Much of our prosperity during the lifetime of the
present generation has arisen from other causes, as is proved
by the very great prosperity of other, and these of course
protectionist, countries.
>>
2. Much of it is transient, and must disappear as soon
as the necessary multiplication of competing establishments
Living on
our capital?
Letter to the Northern Whig
(
208
abroad now in progress assumes its obviously accelerating
imminent dimensions.
3. As to what remains after these large deductions, so
far from the propositions of my brochure lessening its
volume, the contrary result on a grand scale ought to be
expected; whereas, if these propositions or something
equivalent are neglected, the transference of our manufac-
tures and of our shipping will soon develop itself formid-
ably and irrecoverably. Besides,
4. The sagacious and philanthropic Liberal member for
Carnarvon has shown that there is too strong reason to
fear, nay, to conclude, that the United Kingdom has been
consuming, in the form of imports, not a little of its
capital.
Abstaining from further remarks suggested by the fore-
going extract, I proceed―
"It is manifestly unjust," you tell your readers, "to
protect one industry at the expense of another."¹ Yet
any
1 Words like those here quoted continually recur in the writings of
economists. It would be well that some person undertook to rebut them.
The
word unjust is itself unjustifiable. The only excuse for its use is its abuse. It is
in order to put strongly, as is persistently done in Mr. Fawcett's book noticed
hereafter, the case against protection, that protection is said to be attempted
"at the expense of another." It would be easy to prove that the object and
incidence are not what the words suggest, that indeed they are a suggestio falsi.
The "another" spoken of means another industry. But this attribution does not
consist with facts: nobody contemplates the thing. Everybody, now-a-days at
rate, seeks to help every industry, meaning by industry manufacture or employ-
ment, without including primarily shopkeeping and distribution. One special means
used towards this end is the removal of duties from raw materials; another, from
building materials; a third, from food for the employés; not that shopkeepers and
a thousand others do not get large advantage as well, for every manufactory in-
creases the income of 10,000 persons round about it, house-proprietors, doctors,
schoolmasters, tradesmen, etc. Nevertheless the alleged expense is not thrown
either on them, or on the people of the manufactory which the Northern Whig's
critic supposes have the burden to bear, beyond the contribution which every
tax-paying citizen bears. On the contrary, in all probability they receive col-
lectively, although in driblets, pecuniary benefits beyond the sums that they
bear collectively. As to the nation, it participates in their and in the general
prosperity, and keeps or gains a population, prosperous and stalwart, able to bear
equitable taxation, and, if necessary, to shoulder arms.
Explanations.
209
unjust,
called so.
there are many such things Parliament does, and does
legitimately, ay, is constituted for the very purpose of
doing. You might, for instance, theorise, “It is unjust to what is not
protect one person's shop at the expense of another, as is though
done when a police-rate or the expenses of a fire-brigade
are laid on a town,-and it is unjust to defend the port of
Liverpool or Belfast (I wish they were made more secure!) at
the expense of the nation,"-only you are too wise and too
patriotic to advance such a dogma, for you know and feel
that on the whole the incidence of these burdens is fair,
and that, as people who come to market to buy beef must
also buy bones, so citizens who get the benefits of the
Government under which it is a happiness to live, are
bound both in duty and of necessity to submit to whatever
laws and taxes responsible, especially representative,
statesmanship enacts. We must take it for granted that
the object in view in protection is not the pampering of
Court favourites, but the introduction, and, still more, the
retention, of employments of which the need or advan-
tage to the nation is apparent. I emphasise the word
retention," because a strange oversight is habitual.
Economists justify navigation laws without limiting the
period during which they may consistently with sound
policy be in force; but, when manufactures are in question, Economists
they speak of the protective tariff lasting until the object
is effected which they define, viz., introducing; whereas in
every rule of logic, if it is permissible to protect for that
purpose, it is equally and often much rather permissible or
requisite to do so, in order to preserve an industry which
has been already established, that is, after experience has
proved that the business is a natural and proper one, not
dependent on factitious support and nursing, and after a
large portion of the population is deriving a livelihood
from it, and when, further, it is assailed unfairly, which
at fault.
(6
A Common Plea.
the general sentiment of the Queen's subjects surely is
pretty near agreed is the case now right and left, for prac-
tically there is what is as bad as a combination of foreign
powers at work to take what they can from us, not of our
commodities, but of our trades!
210
tion.
I assume that the maintenance of existing industries is
an acknowledged chief matter of national concern, but was
rather surprised at the nonchalance regarding it which was
A popular shown by a free-trading friend with whom I conversed this
morning. He contended thus: "If a hundred steam-engines
can be imported cheaper than they can be made in this
country, by all means let them be. It is a saving of the
difference of price; the British employés displaced will
find other occupation."
My answer was in its substance this :-
1. The employment, counted on so confidently, if taken
by the displaced artisans, will keep other persons out of
what they should otherwise have got. But, passing that,
2. Although the company that buys the engines
saves the difference between the home and the foreign
prices (not the cost, on which my friend bases his argument),
our country will be a loser of the difference between the
price to be paid and the cost at which the engines could
have been made at home. But this is far from exhibiting
the whole loss which the making abroad instead of at
home (if we deal with averages or aggregates and long
periods, which, in State affairs and national interests, is
the true manner of reckoning) inflicts: To reach that
your readers must consider not merely the absence of
profits on the transaction, but the widespread diminution
and withdrawal of wages, of custom, and of wealth-
producing operations. Petty these may be taken singly,
but they mount up in their grand total to a mighty pro-
portion of the whole price. And it ought not to be
<<
A forgotten Vindication.
forgotten that quite as certainly as one good turn leads to
another, does one business transaction connect itself with
and disseminate and draw to it others, with a widening
circle of influence and for an illimitable length of time.
I have written this rejoinder while travelling. At the
railway stall I picked up a book which enunciates forcibly,
by notable quotations, truth and good sense on the
subject in hand. It is dated by its author, Mr. G. A.
Dean, in December 1871, and may not be remembered. Mr. Dean's
Allow me to subjoin a few clips from it.- I am, etc. etc.
book,
26th February 1881.
From Fallacies and Tendencies of the Age, by G. A. Dean,
Esq. (Cullings from a dialogue):
tinction.
tinction.
Free-trade in corn and cattle I always advocated, because we could A proper dis-
not grow enough of the one nor rear enough of the other for home
consumption, and because the lower classes consume both; but free-
trade in velvet, and all articles of luxury, is no benefit whatever to
these classes, but such goods are sent to this country for the benefit of
those foreigners and others who send them, and for that of the wealthy
who purchase them. . . . Buying in the cheapest and selling in the Another dis-
dearest market is all very well when the people of a nation are both
buyers and sellers; but when foreign producers are admitted free of
charge to compete with native manufacturers, and when they do so
under great advantages to themselves, they can not only beat native.
producers out of the field of competition, but the working classes out
of employment. Under such circumstances free-trade is not desirable,
especially as regards articles of luxury. . . Here is a solid fact which
stares the English operatives in the face :-The goods they make are
not admitted into other countries without heavy duties. But goods of
the same kind are allowed to come into England without restrictions
of any kind. The world says, We will sell England anything she
likes, but we do not care to admit her to competition in our markets.
ment.
Among the many firms on the Continent carried on with English A member of
capital, I notice that Mr. Mundella, M.P. for Nottingham, has a large the Govern-
establishment in Saxony where 700 men are employed. . . Our free-
trade policy should be to take off every tax possible upon articles
of food, and that on raw materials, and for revenue tax all foreign.
imported manufactured goods if we are to prevent the manufacturing
interests of the United Kingdom from being ruined, and the artisan
and labouring classes from being starved. The question of protection
•
2 II
•
13
Apposite Quotations
to native industry is one in which not only the manufacturing, the
artisan, and the labouring classes are concerned, but the whole com-
munity. Where manufacturers cannot manufacture at a profit if
fair wages be paid, in consequence of the Government of a country
understood. obliging them to compete with foreign manufacturers on unequal
for patriots.
terms, it is the duty of Government to protect native industry so far
as to place it in a position to compete with foreign industry, as without
this protection the home manufacturer must cease to manufacture, the
operatives will lose their means of living, and the country its greatest
source of wealth. And whenever a country loses its trade, industry,
and people, loss of gold and silver will follow, and that country will be
reduced from affluence to poverty. . . . What, however, can be said
A question of the patriotism of those English manufacturers who, while advocating
free-trade, establish manufactories in foreign countries, and thus help
to ruin the industry of their own country, in which some of them are
legislators. . . . When the late Mr. Cobden made his great sensational
speech in the House of Commons, March 12, 1844, "for a Select Com-
mittee to inquire into the effects of protective duties on imports, upon
the interests of tenant farmers and farm labourers," it was thought so
highly of by the National Anti-Corn-Law League, that they published
it. Now, is it not singular that arguments made use of at that time
in favour of free-trade for the farmer and labourer, may be made to
apply with equal propriety in 1870 to the position of manufacturers,
artisans, and labourers. Mr. Cobden said: “The farmer's interest
is that of the whole community, and is not a partial interest, and you cannot
touch him more sensitively than when you injure the manufacturers his
customers. . You may by your restrictive enactments increase pauperism
and destroy trade; you may banish capital, and check or expatriate your
population; but is this, I ask, a policy which can possibly work consistently
with the interest of the farmers? .. Honourable Members who live
in Sussex and the southern counties, and who are in the habit of
sneering at Manchester, should recollect that they are as much de-
pendent upon the prosperity of Lancashire as those who live in their
immediate neighbourhood. . . . The great want is employment, and if it
is not found, where do you suppose present evils will end, when you consider
the rapid way in which the population is increasing?... It is quite clear
that we cannot compete with this foreigner; it is quite useless our
here, extract attempting to compete with Germany or America; why, we cannot
<<
"
(1844),
infra, p. 214. produce goods at the price at which they do."
Right, if
rightly
application
A pertinent
of Mr. Cob-
den's ques-
tion. The
italics are
not ours.
See as to a
probable
oversight
212
•
•
•
•
Since reaching home I have referred to my Cobden Club
volumes, and do not find in the speech from which Mr. Dean quotes
passages that exactly correspond with all that he presents.¹ I
therefore am encouraged to subjoin a number of other extracts,
which, while they illustrate more or less his contentions, are
interesting in themselves. Looking into the two volumes of Mr.
Cobden's speeches greatly increases admiration of the man. Yet
1 The last three lines appear to be a quotation.
from Mr. Cobden's Speeches.
213
cosmopoli-
tion.
they do not satisfy me that his principles of policy can be
safely applied without modification at the present time. The
reader will, of course, not conclude that I agree generally in the
views which these utterances were intended to recommend. Among
other peculiarities or obliquities, they are characterised by the
amiable and trustful cosmopolitanism¹ and individualism elsewhere Cobden's
stigmatised. An illustration of the occasional inconsistency of tanism.
individual and class aims with national welfare is deducible from
what is taking place at the present day in the matter of our
shipping. For a number of shipowners to sell their packets and An illustra
to transfer the goodwill of their lines to France, might, and pro-
bably would, give the sellers such an advantage as would counter-
balance the loss of business which they would thus by negotiation
surrender. Who would say, nevertheless, that the transfer will
be beneficial to British shipowners as a class, especially if the
lifetime of a class is not to be measured with respect to continu-
ance, like a ship or a shipping business as a money-making agency?
But although, contrary to our conviction, it could be proved that
not only individual shipowners, but shipowners as a class, would
benefit thereby, who would say that the British nation will be
in the same happy position? Will it not unquestionably sustain
a very serious loss, and one not improbably irreparable?
As to the extract which I give from the Club's Essays, what
Mr. Rogers, M.P., says as to the colonies warrants hope that he
will soon take up with vigour the grand question of imperial unity.
At the Mansion House last week I had the pleasure of meeting a
Member of Parliament very nearly connected with a member of
the Government, who lamented that federation of the Empire had Imperial
not been undertaken twenty-five years ago. Could I avoid
reflecting that all the more it should be sought and carried into
effect without further delay?
federation.
Extracts are also given from an essay in the same volume of a
German economist.
From Speeches of Richard Cobden, M.P. 1870 :-
(1842.) I am told that the price of labour in other countries is so low
that we must keep up the price of bread here, to prevent wages going
1 This flaw in the grand anti-monopolist's arguments or inferences somewhat
vitiates what he evidently advances as a specially good clenching illustration,
the case of a tradesman's transactions with tradesmen doing business in their
manufactures and wares within the same town as himself. Mr. Cobden appeals
to it in triumph; but the case of one nation with other nations, unfortunately for
his illustration, is not parallel; it would be so only if their nationalities are
merged in a unity. See vol. i. p. 123.
214
Questionable and Suggestive
down to the same level. But I am prepared to prove, from documents
emanating from this House, that labour is cheaper here than in other
countries. I hear a sound of dissent; but I would ask those who
dissent, Do they consider the quality of the labour? By this test,
which is the only fair one, it will be proved that the labour of England
is the cheapest labour in the world. The Committee on machinery,
last session but one, demonstrated that fact beyond all dispute. They
reported that labour on the Continent was actually dearer than in
England in every branch of industry. Spinners, manufacturers,
Evident con- machine-makers, all agreed that one Englishman on the Continent was
worth three native workmen, whether in Germany, France, or Belgium.
If they are not, would Englishmen be found in every large town on
the Continent? Let us go to any populous place, from Calais to
Vienna, and we should not visit any city with 10,000 inhabitants
without finding Englishmen who are earning thrice the wages the
natives earn, and yet their employers declare that they are the
cheapest labourers. Yet we are told that the object of the repeal of
the Corn-Laws is to lower wages here to the level of continental
wages.
founding of
circum-
stances.
British
labour
cheap!
Trainers or
foremen?
(1843.) If I were not convinced that the question comprises a great
moral principle, and involves the greatest moral world's revolution
that was ever yet accomplished for mankind, I should not take the
Aspirations. part I do in this agitation.
Free-trade! What is it? Why, breaking down the barriers that
separate nations; those barriers, behind which nestle the feelings of
pride, revenge, hatred, and jealousy, which every now and then burst
their bounds, and deluge whole countries with blood.
Contrast this
with low
rates now
(1844.) The cost of the transit from Dantzic, during an average of
ten years, may be put down at 10s. 6d. per quarter, including in this,
from Western freight, landing, loading, insurance, and other items of every kind.
States.
This is the natural protection enjoyed by the farmers of this country.
How should we manufacturers get on, if, when we got a pattern
•
What Mr.
Dean supru
Cobden's
appear here
as a specimen of the productions of the rival manufacturer, we brought
gives as Mr. all our people together and said, "It is quite clear that we cannot
statements, compete with this foreigner; it is quite useless our attempting to
more pro compete with Germany or America; why, we cannot produce goods at
bly as state the price at which they do." But how do we act in reality? We call
controverts. our men together, and say, "So-and-so is producing goods at such a
price; but we are Englishmen, and what America or Germany can do,
we can do also."
ments he
(1845.) Every cargo of corn which comes in from abroad in
exchange for manufactured goods, or anything else -for you cannot get
it unless you pay for it with the produce of labour-will serve the
working man in two ways. In the first place, he will eat the corn
which is thus imported; inasmuch as we of the middle, and those of
the upper classes, already get as much as we require, and the poor must
eat it, or it will not be consumed at all. But it must be paid for as
well as eaten; and therefore every cargo of corn that comes to England
will benefit the working men in two ways. They and their families
tracts from Mr. Cobden's Speeches.
215
our laws
must eat it all; and it can only be paid for by an increased demand Would that
for their labour, and that will raise their wages, whilst it moderates helped to
the price of their provisions.
make it so!
(1846.) They say that the Anti-Corn-Law League are merely the
advocates of free-trade in corn, but that we want to preserve a mono-
poly in manufactures. . . . At the very beginning of this agitation-
at the meeting of the Chamber of Commerce-when that faint voice
was raised in that small room in King Street, in December 1838, for a disavowal.
the total and immediate repeal of the Corn-Laws-when that ball was
set in motion which has been accumulating in strength and velocity
ever since, why, the petition stated fairly that this community wanted
no protection for its own industry. I will read the conclusion of that
admirable petition; it is as follows:-
favourite
Holding one of the principles of eternal justice to be the inalienable right of A first and
every man freely to exchange the result of his labour for the productions of other resolution of
people, and maintaining the practice of protecting one part of the community at the League.
the expense of all other classes to be unsound and unjustifiable, your petitioners
earnestly implore your bonourable House to repeal all laws relating to the im-
portation of foreign corn and other foreign articles of subsistence; and to carry
out to the fullest extent, both as affects agriculture and manufactures, the true
and peaceful principles of free-trade, by removing all existing obstacles to the
unrestricted employment of industry and capital." 1
66
We have passed similar resolutions at all our great aggregate meetings
of delegates in London ever since that was issued. I don't intend
to go into an argument to convince any man here that protection to
all must be protection to none.2 If it takes from one man's pocket, and
allows him to compensate himself by taking an equivalent from another
man's pocket, and if that goes on in a circle through the whole com-
munity, it is only a clumsy process of robbing all to enrich none; and
simply has this effect, that it ties up the hands of industry in all
directions.
•
· H
hopes of the
Well, there is one other quarter in which we have seen the progress Former
of sound principles-I allude to America. . I have never read a United
better digest of the arguments in favour of free-trade than that put
States.
•
1 The substance of this resolution is dealt with in the body of the foregoing
letter to the Northern Whig. As to the expressions "every man,
33.66 unrestricted
employment," I cannot doubt that by many (what proportion who can tell?) they
were understood—as a judge or jury might be expected to do-to mean within the
kingdom. The reader will observe that the ideas of articles of subsistence and
manufacturing employment are prominent.
2 The reader should be careful to distinguish between "protection," or what
is called by that name, and the equalising or bias duties which our pages advo-
cate. These are the nation's collective doing what its people individually do in
their own transactions, and wish their representatives to do on their behalf in
affairs of trade, what in practice cannot be done in any other way.
There are
innumerable occasions when there is no saving or benefit whatever to the citizen
in his buying foreign wares in preference to British: those, however, are seen in
shop windows or presented to him on counters: he may even not know that they
are foreign: so he buys them, just because they come readily to hand. Why do
they thus come? It may be, who knows how commonly? only because conti-
nental establishments form branches and agencies, or engage clever travellers and
bagmen, to attract or solicit the ill-founded and unpatriotic preference: daily ex-
perience shows on how slight grounds, yet how effectually. Is not a bias wanted ?
Visionary
anticipa-
tions.
216
Extracts from Mr. Cobden's Speeches
forth by Mr. Secretary Walker, and addressed to the Congress of that
country. I augur from all these things that our question is making
rapid progress throughout the world. . . . We should be considered as
occupying as independent and isolated a position as we did at the first
moment of the formation of this League. We have nothing to do with
Whigs or Tories. .
I have taken as large and great a view of the effects of this mighty
principle as ever did any man who dreamt over it in his own study. I
believe that the physical gain will be the smallest gain to humanity
from the success of this principle. I look further; I see in the free-
trade principle that which shall act on the moral world as the principle
of gravitation in the universe,-drawing men together, thrusting aside
the antagonism of race and creed and language, and uniting us in the
bonds of eternal peace. I have looked even further. I have speculated,
and probably dreamt, in the dim future-ay, a thousand years hence,
-I have speculated on what the effect of the triumph of this principle
may be.
I believe that the effect will be to change the face of the
world, so as to introduce a system of government entirely distinct from
that which now prevails. I believe that the desire and the motive for
large and mighty empires, for gigantic armies and great navies-for those
materials which are used for the destruction of life and the desolation
of the rewards of labour-will die away; I believe that such things
will cease to be necessary, or to be used when man becomes one family,
and freely exchanges the fruits of his labour with his brother man.
I believe that the speculative philosopher of a thousand years hence
will date the greatest revolution that ever happened in the world's
history from the triumph of the principle which we have met here to
advocate.
(1846.) We are on the eve of great changes. We are going to
unapt pupils. set the example of making industry free,—to set the example of giving
Teaching
the whole world every advantage of clime and latitude and situation,
relying ourselves on the freedom of our industry. Yes, we are going
to teach the world that other lesson.
•
•
•
(1846.) I believe we are at an era which in importance, socially,
has not its equal for the last 1800 years. I believe there is no
event that has ever happened in the world's history, that in a moral
and social point of view-there is no human event that has happened
in the world more calculated to promote the enduring interests
of humanity than the establishment of the principle of Free-trade,--
I don't mean in a pecuniary point of view, or as a principle applied to
England, but we have a principle established now which is eternal in
its truth and universal in its application, and must be applied in all
nations and throughout all times, and applied not simply to commerce,
but to every item of the tariffs of the world; and if we are not mis-
revolution." taken in thinking that our principles are true, be assured that those
Dream of
"a world's
results will follow, and at no very distant period. Why, it is a world's
revolution, and nothing else; and every meeting we have held of this
League, and this its last meeting probably, may be looked back upon
as the germ of a movement which will ultimately comprehend the
"B
and the Cobden ClubPublications.
217
whole world in its embrace. . . . Our spirit is abroad, and will pervade
all the nations of the earth. It will pervade all the nations of the
earth because it is the spirit of truth and justice, and because it is the
spirit of peace and good-will amongst men.
compel
trade with
us.
(1862.) We avow the principle of non-intervention, which means We no longer
neutrality, and we have, therefore, made ourselves the great neutral nations to
Power of the world. . In adopting Free Trade we have renounced
the principle of force and coercion. For fifteen years there has
hardly been a serious check to business-scarcely a necessity for an
anxious day or night on the part of the great body of our manufactur-
ing and trading population. But let not the young men of this
district think that the possession of such advantages can be enjoyed
without exertion, watchfulness, and a due sense of patriotic duty.
(1850.) We shall never make progress in the principles which we
advocate until we leave it to other countries to take the course they
believe to be best for their own interest, after calm consideration, and
until they have seen, by the example England has set, that the Free
Trade adopted by her was beneficial to her own interests.
•
From Cobden and Political Opinion, by Professor Thorold
Rogers (M.P.) 1873-
ledgments.
run.
I am ready enough to admit that a commercial treaty is not the Acknow
highest manifestation of economical intelligence. But it may be the
best under the circumstances. Men must walk before they can
They must be taught their alphabet, and con words of one
syllable, before they can read an ordinary sentence with fluency.
... The Commercial Treaty of 1860 formed a powerful obstacle to the
projects of M. Thiers.¹ . . . Mr. Lowe imagined that the essence of
Cobden's Treaty was reciprocity, and he explained reciprocity as the
antithesis to free-trade. Now the Treaty of 1860 was not a reci-
procity treaty, for France did not accept free-trade in the same measure
in which England had accepted it. . . . The English treaty was near
expiry, but France had negotiated other treaties of a similar kind, and
under similar provisions, with several other nations, who were not
willing to submit to a sudden abandonment of these obligations. As
long as any of these were in force, the policy of M. Thiers was im-
practicable.
From Cobden Club Essays, second series. 1872-
German's
way of
[Faucher.] The Anglo-French Treaty has been, as events have proved, An eminent
the first step in a great international movement. Mr. Cobden himself
had some such notion in his head, but it was not that of making use of putting
France for introducing a novel kind of commercial treaty. In his
idea, she was the ram that was to jump over the Free-Trade stick to
things.
1 This second edition refers elsewhere to this notable fact. But next time
the painful boot may be on the British leg, and we might be required to hobble
and lose what and how lamentably?
218
Mr. Faucher.
The Empire.
make the whole Continental herd follow. He could not get it out of
his head, because fashion spreads from Paris, that opinion on
legislative questions does so too. In this he was grievously mistaken;
the time is many years gone by since France could set political
fashions to other nations; and France, in fact, did not jump at all
over the stick. The present French tariff would be the reverse of a
Free-Trade reform with the neighbours of France all round, Spain
excepted. . . . Treaties may now at once be clothed in that form,
which, as was privately understood, the original Anglo-French Treaty
was destined finally to receive on both sides; namely, that of conteni-
poraneous reduction or abolition of protective positions in the tariffs of
the two contracting parties, without reference to the difference in the
national origin of the article. . . . Once more the Congress of German
economists, assembled at Lubeck on the 28th of August, has given
notice to whom it concerns, that a further adjournment of tariff
reform in Germany will not quietly be submitted to. . . . Two riders
were moved to my amendment, both proceeding from uncompromising
free-traders. The one moved by Dr. Soetbeer, late syndic to the
Board of Trade of the free city of Hamburg, was this:-3. But
between such states as rigidly carry out correct principles in their
Is the anno commercial legislation, their customs and excise departments, and their
administrations, commercial treaties are superfluous, and not recom-
mendable. [This resolution referred only to states which, like Ham-
burg and Bremen, have no customs duties-properly so called-and in
which sound principles of commercial legislation have been adopted as
an essential element in the national policy]. . . . All the three riders
were carried, with more or less majority, and then the amendment
with them against but a few stray votes.
tation war-
ranted?
1
Too confi-
dent.
Are not the opinions given forth in the subjoined extracts
more practical and consistent with real experience and reasonable
expectations?
1 The following noble thoughts of Professor Rogers from the same volume
may be allowed a place in a footnote :-
[Rogers.] It is not an empire, but the project of an empire. Such a labour
as that which would establish a true federation between the United Kingdom
and her colonies would be worthy of a statesman. It would be undertaken if the
British Parliament were less a chamber in which peddling interests are discussed
and settled by compromise, and more a senate where great questions of policy
were debated and determined. . . A total severance of those colonies from the
old country would be a misfortune. The invitation to secede, so freely ten-
dered to the colonists, is, in my opinion, inexpedient, as well as uncivil. . . . It
may be the duty of this country, at some future time, to take a very active part
in the councils of the civilised world. But as yet no such council has been
called, and diplomacy only forms a substitute for debate on the general good of
civilised society. .. If at some future time these relations, or such as these,
are developed and sustained between the English-speaking races, so as to make
them as nearly as possible one people, which can have no quarrel because it has
one purpose, civilisation will progress with unchecked rapidity, and though the
United Kingdom may forego an empire, by becoming the oldest member of a
great alliance, this country will give a reality to her boast, that she is the mother
of free institutions and of free nations throughout the world.
•
•
Sensible Views.
From Outlines of an Industrial Science. By David Syme.
Second edition. London: 1877-
•
from every-
Among the ancient writers the tendency had been to subordinate “An owre
the individual to society, individual interests to social interests. . . . true tale."
The deductionists have adopted the converse method, and subordinate
society to the individual. . . . Having committed this error, it was
natural that they should commit another and ignore individual
relationships altogether. And this is what they have actually done.
They have proceeded on the assumption that there is but one indivi-
dual in the whole world, and that any act of his affects only himself,
and has no relation to anybody else. . . . Society could have no
existence if there were no rights and no corresponding duties.
Borrowing a shibboleth from certain French traders, they preach
henceforth the gospel of laissez faire. To make any attempt to
promote industry, either directly or indirectly, was naturally enough
regarded by the commercial mind in Colbert's day as an interference
with vested interests; but by the economist of the modern English
school such an attempt is looked upon as nothing less than a gross
violation of the first principles of economic law, an unwarrantable
outrage on the established order of nature. . . . The gardener mends More lesson-
nature when he gives variety of tone and colour to the landscape. day life.
The agriculturist mends nature when he drains his land, when he
adds any ingredients to the soil to increase its fertility, and when he
improves the quality of his seed or his breed of live stock.
every positive law is an interference with natural law. Is there any-
thing peculiarly sacred about industry that it should be looked upon
as sacrilege to lay hands on it? The question does not require a
moment's serious consideration. The dogma of laissez faire, if applied
to social life, would be the negation of all law. . . . But while art
mends, it also follows nature. 1. It would be absurd to expect
society to do for the individual what is chiefly for the individual's
advantage. If it has ends, then it must take the proper means to
accomplish those ends. . . . Is it good for the whole community that
there should be ships and commerce? Then the State should make
harbours and build lighthouses. Is it good for the whole community
that there should be intercommunication between the various parts of
the country? Then the State should make roads or build railways, or Wise obser-
sanction and promote their being made. Is it good for the whole
community that the population should be fully employed and ade-
quately remunerated? Then it may be necessary for the State to
promote, by such means as it has in its power, the growth of manufac-
tures. . .
It is expected of society, as it is of the individual, that it
will look after its own interests. The principle laid down by Mill,
that State interference is justifiable when important public services
are to be performed which there is no individual specially interested
in performing, nor any adequate remuneration which would naturally
or spontaneously attend their performance, holds good in all cases.
[Principles, vol. ii. book v. ch. xi. 15.] . . . To acquire a profession, a
vations.
•
219
•
Freight as a
protection
too much
made of.
Some Debateable Opinions
youth must not only give years of service gratuitously, but often a
bonus as well. . . The ratepayers of a town want a good harbour,
and they impose a temporary rate on themselves for the purpose
of raising the necessary funds-in the same way as the ratepayers of
Greenock did in order to secure the West India sugar trade—and
they are everywhere applauded for their energy and enterprise. Why
should that which is proper for the individual or corporation to do, be
improper for the State? . . . The economists insist that the individual
is the best judge of his own interests. . . . All that I insist upon is
that the principle should have a more general application, and that
society should, in respect to ability of judging as to its own interests,
be put upon the same footing as the individual.
220
From Free Trade and Protection, by Professor Fawcett, M.P.
In one of the foregoing extracts from Mr. Cobden's speeches,
the natural protection attributed, as elsewhere we show, to the
expense of transport is stated with, to say the least, great stress
laid on it. The point is a favourite one with modern economists.
I take from my shelves Professor Fawcett on Free Trade and Pro-
tection. He, too, presents it thus:-
The home trader must always in his own market enjoy an advantage
which may be regarded as conferring upon him a kind of natural pro-
tection; because the cost of carriage is necessarily a more important
factor in the price of foreign than of home produce. Thus if it cost.
30s. a ton to send iron from England to Chicago, and only 10s. a ton
to send it there from the iron districts of Pennsylvania, it is evident
that if English iron were admitted duty free into the United States
the American ironmasters would still have a great advantage in their
own markets.
Passing by the fact exhibited elsewhere, that so far as Conti-
nental ports-chiefly these but not these only--are in question,
several of them are better placed than many British ones for the
supply of the largest and best British markets, observe that the
illustrative commodity here is pig-iron, a heavy article of very low
value, and think how little of this "natural protection" there is in
silks, the whole weight of which manufactured in the kingdom is
only about 1000 tons! Clearly, therefore, when it exists at all, it
is occasionally inappreciably small, and at the best is extremely
unequal. Would a surmise be quite unfounded, that the fre-
quency with which this plea of natural protection is dilated on,
indicates a lurking unconscious liking for some such bias as this
brochure favours?
Having made one extract from this belauded vindication of
free-trade, may I not cull a few others?
of Professor Fawcett, M.P.
On page 5 the able and popular Postmaster-General says, con-
firmatorily of what we have alluded to elsewhere-
22 I
attributed to
It is, however, clearly shown by the tone of the discussions at the
time that the free-trade movement in England derived its chief impulse
from the direct influence exerted by protection in raising the price of
food. In the protracted debates in the House of Commons, speech Too much
after speech was made both by the opponents and the supporters of Free-Trade.
free-trade, in which no reference was made to any other subject but the
repeal of the Corn Laws. . . . We in England are much too prone to
overstate the results of free-trade. Scarcely a week elapses without its
being said, as if it were a triumphant rejoinder to all that is urged by
the American, the Continental, or the Colonial protectionist, "English
exports and imports have more than quadrupled since protection was
abolished; the income of the country, as shown by the yield of the
income-tax, has more than doubled, wages have advanced, and popula-
tion has increased." But a moment's consideration will show that
other causes have been in operation besides free-trade to promote this
wonderful growth of prosperity.
The following passage favours the contention that protective
duties do not raise prices of articles made under natural conditions,
one of which is free and ample domestic competition :-
protection
When considering any attempts that may be made either by
bounties on exports, or by restraints on imports, to give an artificial
encouragement to any particular trade, it cannot be too distinctly Effect of
borne in mind that it is impossible permanently to secure an excep- duties on
tionally high rate of profit to any branch of industry, unless free prices.
admission to it is barred, and those who are engaged in it enjoy the
privileges of a close monopoly. . . . The rise in price which is caused
by protection, whether it be in agricultural or in manufacturing in-
dustry, cannot enable either a higher rate of profit or a higher rate of
wages to be permanently secured in the industries which are protected.
There is some truth in the following:-1. It does not run right
in the teeth of a numerical small bias or rectificatory duty. 2. The
inference that such a duty would lead to excessive protectionism
may be rejected. 3. Another inconvenience of the French Treaty
is seen in the most recent demand of French beet-sugar makers,
that, if we are to observe our engagements, we should impose
countervailing duties on Austrian and other non-French beet raw
sugars !
4. As to England's gain (in price) it is temporary, whereas
her loss (of a trade) may be permanent. 5. The advance in price,
if it were real, is not primarily to make the trade " remunerative,"
but to put it on a fair and right footing.
Considerable injury is no doubt inflicted on English sugar refiners
by the French being bribed by their Government to sell sugar in the
Sugar
Bounties.
Professor Fawcett
English market at a price which without a State subvention would not
prove remunerative. If, however, we once embark on the policy of
protecting a special trade against the harm which may be done to it
by some other country adopting an unwise fiscal policy, we should
soon find ourselves involved in a labyrinth of commercial restrictions,
and our tariff would become as protectionist as is the tariff of the
most protectionist country. England, as we have seen, gains,
as certainly as France loses, by the bounty on French sugar... . We
should be simply giving a new sanction to protection if the import of
cheap sugar from France were impeded, with the view of causing such
an advance in the price of sugar as would make the trade of sugar-
refining in England adequately remunerative.
What is said on page 31 is noteworthy :-
Protective duties are now chiefly employed in other countries, to
secure various branches of manufacturing industry against foreign
competition. . . . Protection, it may be said, is alone confined to
imposing restrictions upon the importation of articles which come into
successful competition with those of home production.
4
222
Very bold dicta appear in chapter III. page 53 -
A strange
What reason is there to suppose that restrictions which are admitted
to be disastrous if imposed on the trade between Kent and Northum-
berland can be less disastrous, and, economically, less indefensible, if
they interfere with the free exchange of commodities betweeen Kent
and Normandy? Exchange of produce between Kent and Normandy
conception. is prompted by just the same motives, and conduces to just the same
ends, as exchange of produce between Kent and Northumberland.
Kent would purchase from Normandy, in precisely the same way as
she purchases from Northumberland, various commodities which she
either could not produce herself, or which could be produced more
cheaply in Normandy. Normandy, on her part, would be able to
obtain in exchange for the produce she thus sent to Kent, commodities
which she could not produce herself, or which she could purchase at a
cheaper rate from Kent than she could produce them for herself.
Remark-1. A county presents too limited an area for protec-
More cosmo- tion, which, though unsuited for a county, might be well suited for
politanism.
an empire. 2. The case of Normandy is altogether different from
that of Northumberland, which lies under the care of British states-
Normandy's prosperity is not beneficial to our country, as
men.
is our own country's. 3. All this proceeds on the lines of that blind
justice and denationalising which we dignify as cosmopolitanism
and individualism. The next extract, characteristically speaking as
it does of hostility, exhibits the book's pervading fault of seeing in
protection, and less improperly in retaliation, not enlightened or
unenlightened regard for our own nation's self-interest, but coarse
P
and his Economics.
223
hostility to other nations. Other unwarrantable assumptions and
ugly names the most cursory reader may detect:
•
Protective duties produce the same effects whether the industry of
any particular locality is protected against home or against foreign
competition. None of the circumstances which make it advantageous
for trade to be carried on between Kent and Northumberland, depend
upon the fact that the people of Kent and Northumberland live under Singularcon -
the same government. . . Unless the annexation of Alsace and tentions
Lorraine to Germany has changed the character of the industries
carried on in those provinces, how can it possibly be less advantageous
for the people of France to trade with Alsace and Lorraine than it was
before the annexation took place? .. Suppose, however, now that
the annexation has taken place, a duty of twenty per cent. is imposed
upon goods imported from Alsace, in order that the trade of Germany
may be discouraged and that of France encouraged. The inevitable
effect of this duty would be to compel those who purchased these goods
to pay a higher price for them. . . . Fully to appreciate the injury
which the French people would inflict on themselves by pursuing this
policy of industrial hostility towards a neighbouring nation, it should
be remembered that not a single shilling of additional revenue may
be yielded to the State by the taxation which is thus thrown upon
them. Let it be assumed, for instance, that in consequence of the
imposition of this duty, it is found to be more advantageous to obtain
from some other part of France, a certain product of which £1,000,000
worth had before been annually purchased from Alsace. The trade,
so far as this particular article is concerned, between France and
Alsace is altogether destroyed. The price of the product is raised,
because it is now obtained under more unfavourable conditions.
The community receives no equivalent for the sacrifice thus made; the
loss to the nation is just as real as if, in order to favour the landowners
in some particular district, land in some other district which was more and miscon-
fertile than theirs, should not be cultivated. . . . It may, perhaps, be ceptions,
said that although a loss is inflicted on the French people by their
being compelled to pay a higher price for the articles which had before
been obtained from Alsace, yet a compensating advantage will be
secured through the establishment of a new branch of industry in
France. . . . Is it possible for the rest of France, excluding Alsace,
to be benefited by the establishment in Normandy of some branch of
industry which could be more profitably carried on in some other
locality? If such a proposal had been made, would it not have been
at once seen that it would be most unjust to tax the people, for
instance, of Paris, Lyons, and Marseilles, by making them pay a higher
price for some article, in order that an industry which had before
thriven in Alsace should now be carried on in Normandy? If they
had to pay more for this particular article, they would be able to afford
to spend less on other articles which they might require; and there
would be no reason to suppose that the people of Normandy where the
new manufacture had arisen would be better customers of theirs than
those by whom the manufacture had previously been carried on. It
More Comments on
therefore appears, without taking into account the injury which would
be inflicted on Alsace, that no adequate compensation could possibly
be obtained by the French people, for the loss which would be inflicted
upon them, if industry were, in the manner just described, diverted
from its natural channels. Whatever may be the political ad-
vantages which France may consider she secures by impeding the
prosperity of Germany, the principle which is here contended for is
this: that, viewing the subject only in its economic aspects, the loss
which France would have to bear from discouraging some industry
A qualifying which naturally flourishes most in Alsace, is precisely the same whether
Alsace is, or is not, a part of France. If an enumeration is made of
the benefits which a country derives from a free interchange of com-
modities, it will be found that in no single instance does the gain
depend upon the two districts, between which the exchange takes
place, being parts of the same country. . . . If it were advantageous
that there should be perfect freedom of trade between Alsace and the
rest of France, when Alsace constituted a part of the French nation,
it cannot be economically less advantageous that there should be the
same freedom of trade now that Alsace has been incorporated with
Germany.
Awkward
excuses.
224
It is difficult to conceive how a Professor and member of a
Legislature could advance such untenable propositions as those at
the close of these quotations. The errors they popularise come too
often under notice in our pages. The Professor would have us
believe that to this nation it is as broad as it is long whether we
consume articles made in Alsace and Lyons and Lille, as the same
articles made in our own country!
Further on in the same chapter are views which are dangerous.
For instance, the amount of these foreign manufactures imported is
made light of, in seeming forgetfulness of the fact that it is pro-
gressively increasing, and is likely to do so for obvious reasons in
an accelerating ratio. There is no index at the end of the volume;
but I may say that the gloomy state of our woollen manufacture in
its relation to that of France scarcely is dealt with. Silk, the
falling off in the manufacture of which is even more notable, is not
treated of on page 70 in sympathetic spirit. The terrible decline is
hypothetically attributed to French superiority in taste, or colour,
or designs, or water, or dyeing, and it is added, “in such a case . . .
protection will be given . . to avert . . . the consequences of not
taking the requisite trouble to acquire the skill and other qualities
which are possessed by their foreign competitors, or of not being
provided with equally great natural advantages. If the English
silk manufacturers suffered in consequence of the competition of
cheap French labour, there is no reason why the same competition
should not make itself felt in the cotton trade and other branches
Professor Fawcett's Economy.
225
of
of manufacturing industry. . . Two remarks on this-1st, The
competition spoken of at the close is pretty widely felt in other
industries; 2d, If there is a deficiency in skill supposable, surely it
is competent for, nay, absolutely required of, a sensible Board of Work for the
Trade, for the nation's sake, to encourage and facilitate the using Trade.
of earnest endeavours to discover, and remove as far as possible, the
causes of our insinuated inferiority. Should it, like a fatalist,
excuse itself for doing nothing under the plea of natural advantages
on the other side?
در
I doubt if other economists would agree in the following sen-
tence (page 71):-" If an import duty [on iron] were imposed with
the object of checking this importation, the effect of such a duty
would be not only to raise the price of the iron imported, but the
price of all the iron produced in England would be advanced by an
amount equivalent to the duty. . . . If, therefore, the price of iron
were raised £1 a ton by the imposition of an import duty of this
amount, the English people would be taxed to the extent of at least
£6,365,000." Surely, at the worst, if there were a rise, it would be
temporary and local, as long as we are producing much more than
we consume, and much less than if a demand arose we can pro-
duce. I note, however, that iron is on the border line between
manufactures and such necessaries as food, which are outside
legitimate protection.
I do not understand the following (page 88):-" If a mechani- More ques-
cal invention cheapened the production of a manufactured article ideas.
in England, or reduced its cost of carriage so much that the
English manufacturer was able to sell it in the United States at a
reduction of 10 per cent. on its former price, the American manu-
facturer would put forward the claim to higher protective duties.
It is in strict accordance with the principles of protection that this
claim should be granted. In the absence of protection, the home
manufacturer would endeavour to improve his own manufacture."
Is not this burlesque ? Are not the American manufacturers as
earnest as possible, even under protection, in endeavours to
improve? I have elsewhere shown that fear of being unable to
compete, and probability of requiring to succumb, have the opposite
effect.
•
-
On what ground does the Professor say, page 90, that “nothing
is more certain than that, if America purchased more largely from
England, the English people would in their turn increase their
purchases of American produce"?
The following, page 93, contains a good argument for preferring
the use of articles manufactured in the British Islands :- "If trade
P
Some relief.
Religion
good for the
State and
nation.
Religion in Government
improved in England, if employment became more abundant, if
profits increased and wages advanced, there is not a single article
of general consumption for which the demand would not increase,
.. whether the article is made at home, or whether it is im-
ported." I admit, to the honour of the distinguished writer, that
he is careful to speak of the effects which he predicates as being
economic. For instance, on pages 57-59, this adjective and its
corresponding adverb occur five or six times; and previously, he
expressly excludes social and political considerations, on which,
however, he throws little light. If I am allowed to use these
words in their natural sense, and to accept their meaning with its
natural limitations, we are at one. Must not political considera-
tions predominate? Can we dispense with social ones?
226
I have not beside me Mr. Augustus Mongredien's Cobden Club
publication. From what I have read about it, I doubt not it will be
found to sport the same imperfect and dangerous opinions. Well
may lovers of our country be apprehensive of the projected circula-
tion of the works of such dona ferentes. I say this with pleasing
remembrances of forty years ago.
I suppose he, as much as the Professor, ignores the disad-
vantages, including liability to invention taxes, to which the body
of this brochure calls special attention.
Reflections suggested by extracts referred to on this page.
Eliminating from Economics the social and the political, a
combination which is nearly equivalent to or comprehends the
neighbourly and the national, has its counterpart in a tendency of
the present day to shunt the moral and religious. If the way were
open for us to revert to holding office being understood to involve
an engagement to maintain Christianity or revealed and pure reli-
gion, a great gain or recovery would be made. There would be more
freedom and boldness to enunciate the moral teaching of the Bible
along with the high and noble sanctions that enforce and endear it.
Is there not reason to think that in education and training, con-
science and the fear of God are much less appealed to and infused
than formerly, to present disadvantage even in affairs of this world,
and with the dread prospect of further declension from, and some
oblivion of, the accepted standard of what is good and comely?
What is right should be more inculcated and insisted on than (as
already is too common) what is gentlemanly and honourable, or
according to usage and propriety.
There is no other matter which even in its national bearing
The right ground for Sabbath rest.
227
demands, and is entitled to, so serious attention. On account of
this conviction, patriots too justly deplore the efforts that are being
made by a number of well-meaning persons to break down our
Sunday use and wont, by opening museums, etc., and this for
several reasons. Here are one or two strong ones:-
should be
shut on
First, A lessening of the time now appropriated to religious Museums
reading and employment will lead to lessened and continually Sundays.
lessening knowledge of, and interest felt in, the Word of God.
Second, Opening of places of amusement (and these by and by not
of the most improving kind) can scarcely fail to follow. Third, The
attractions of these places, purposely suited as they will be to the
"natural" taste, cannot but diminish church attendance and weaken
the hold that religious meetings and teaching and studies now
happily have of the people, and particularly of the young. Fourth,
The museums and other places that would be open will not be
superintended and kept by the persons whose character and family
life specially mark them out or fit them to be the most desirable
influencers and leaders of their frequenters. They will be sup- Dangers.
planted by unmarried persons who have not home ties and attrac-
tions and qualifications, and who do not teach Sunday schools nor
prefer to spend the Sabbath in the wholesome manner we have
derived from our fathers. There are two plausible answers to
these views:
controvert.
I. The day is a religious one; we have no right to impose it
by authority. To this the rejoinder is-1. That contention is Pleas we
untenable; we continue to be a Christian nation, and wish it so.
2. "Godliness hath the promise of the present life :" it is good for
the nation. 3. The will and wants of the (great) majority of the
people ought to prevail in such a case; and this pre-eminently
where a sense of duty commingles with and dominates these.
II. It is right to present counter-attractions to the public-
house and haunts of tempters to evil. The rejoinder to this may
fairly be, No doubt; but where there is a mixture of good and
evil, a balance must be struck, and the greatest good of the greatest
number must carry the day.
But, secondly, there is another, a political danger and inequality
rapidly acquiring strength-the holding on Sundays of public meet-
ings on secular questions. Warrantably we magnify two things-The
importance of such questions, and the right and duty of their being
discussed by persons of all ranks and all opinions together. But Sunday
if the meetings are held on Sunday, either the most pious, and those meetings,
who are presumably the best and most desirable leaveners of the tionable.
political
why objee-
Sabbath
rest.
228
State Policy of Sabbath rest.
public mind and leaders of public movements, will be absent, or
those of them who do attend will feel themselves out of their proper
place and not be in heart. In effect they, especially church-
attending Protestants, will generally keep aloof. Thereby the
opinions and persons which it is not most beneficial to have made
prominent and influential, will be unduly promoted to view and
office. Should not Parliament and the powers that be, in justice
to the whole people and for the welfare of society, discourage and
forbid political meetings on the Lord's Day?
I hope this note, although not quite in its place, will be excused.
It is not, I trust, the croaking of a laudator temporis acti and
morbid despondent censor of contemporaries.
It is right I should add that I regard the Sabbath as being now
and from the first not an ecclesiastical, but a national, political,
civil, secular, social, domestic, humane, sanitary, and otherwise bene-
ficent institution, divinely made for man as man, and adapted
to his grand wants, an institution which the Christian Church
and people pre-eminently share and enjoy the convenience
and comfort of, but do not ordain, and did not originate. It
may accordingly be prescribed by law and enforced by the civil
magistrate. There is room for, there are, differences of opinion or
doctrine about Sabbath observance. Still we know and see that,
as a matter of fact, a very large proportion, perhaps the great body,
of British Christians-and chiefly the most consistent livers among
Christians-do eschew, and act as if it was their bounden duty to
eschew, political conversation and, more strenuously, political meet-
ings on the day. Obviously, to alter the nation's practice in either
of the two ways above mentioned, is to inflict on all such a serious
wrong, and on every community and on the nation a terrible pro-
spective loss, to introduce into civic and all life and service a
loathsome canker and the virus of a constitutional malady that
will end in hopeless decline.
A good many among us may admit that they have been some-
what selfishly exigent for accommodation from railways, the Post
Office, and clubs, as to the conveniences affordable by which there
is room for observations resembling those we have made. Let us
all cultivate a spirit of thankfulness for the sweet and solid
advantages most of us severally possess, and do what we can to
spare others, while also we expect and think with becoming sym-
pathy and charity of those who cannot have them to the full,
especially of gentlemen connected with the daily press, who do so
much on our behalf; and let us beware of setting up any standard
which the best of that profession, if they were to apply it in
Scottish Shipmasters' Association.
229
judgment on themselves, would cause them to withdraw from their
important posts and surrender the most potent agency for
influencing the age, right or wrong, to the control of men who,
least of all, should be sought out to form the nation's character and
direct the nation's course.
Continent
British com-
In connection with this subject, a question arises which may The Sabbath
be stated thus: Seeing that the law and practice of this nation is work on the
to abstain from work on the first day of the week, and that thus affects
a difference has from of old existed in the conditions under which petition.
labour and competition are carried on among us, but which, not-
withstanding the seeming advantage given to rivals by their
working a part of that day, this nation could on no account alter,
ought not legislation as to trade, in the spirit of humanity and
religion, to allow at least, where mischief is threatened, recognition
of the effect which the longer hours have as aids to combating
foreigners?
SHIP CAPTAINS AND THE BOUNTIES.
The Daily Review of 7th March has this:-
SCOTTISH SHIPMASTERS' ASSOCIATION.-The following petition of
the Shipmasters' and Officers' Protection Association of Scotland has
been addressed to Earl Granville :-That your petitioners are ship-
masters and mates, holding British certificates of competency, and
belonging to Glasgow, Greenock, Leith, Dundee, Montrose, Aberdeen,
and other ports; that your petitioners have considered the system of
granting large bounties to French merchant shipping, instituted by the
recent Act of the French Legislature; that your petitioners believe Confirma-
that the said Act will lead to the creation of a large fleet of bounty- tion and
earning vessels, as distinguished from legitimate traders, sailing under
the French flag; that while British shipbuilders may at first receive a
share of the orders to build such vessels, and that while British ship-
owners may to some extent defend their threatened interests by
transferring their vessels to the French flag, the case of your peti-
titioners is, that for every bounty-earning French vessel which shall
drive a British vessel out of any trade, and for every British vessel
transferred to the French flag, one British shipmaster, several British
officers, and part at least of a British crew, will be deprived of the
means of earning their livelihood. That is a matter which affects the
wellbeing of 250,000 adult male subjects of Her Majesty, and has also
an important bearing upon the maintenance of the maritime defence of
the United Kingdom. Your petitioners therefore humbly beg that Prayer.
230
The French Woollen Manufacture
your Lordship will be pleased to take such steps in framing com-
mercial treaties, or in such other directions as may seem good to your
Lordship, as will leave the British Government free to protect its free-
trading subjects from being ousted from their employment.
Great
French ex-
ports.
ON THE FRENCH TARIFF ON WOOLLEN GOODS,
by MR. T. CRAIG-BROWN.
In July last it was represented that French manufacturers, far from
requiring to be protected, are able to do more than hold their own
against British manufacturers, as statistics of their relative woollen
exports and imports conclusively prove. At that time the Tariff Bill
was before the French House of Deputies, by whom it has been
adopted; and now it has come before the Upper House on a report of
a committee. In this report the Senate is recommended not only
to pass the increased Tariff sanctioned by the Lower House, but in
some instances to augment it. . . . In worsted the report proclaims
the superiority of French makers, and says they have been a long time
in advance of their foreign competitors. For the goods they make
from soft wools, spun on the mule to great fineness, they not only
command the home market, but find an export trade amounting some-
times to three hundred millions of francs (£12,000,000 stg.) per
annum. Light "compensating charges," as M. Denis gently terms
protective duties, are therefore all that are necessary for the worsted
trade. "The Austrian treaty came in to aggravate the situation
created by the Treaty of 1860. . . . Importation of yarns then became
considerable. . . . The Government, justly concerned at the decay of
this industry, formerly so prosperous, and acknowledging the error
made in protecting by feeble duties a manufacture so complicated and
exacting so much workmanship (main d'œuvre) as the spinning of
woollen yarn, proposed to raise the duties about 50 per cent., in
addition to the increase of 24 per cent. applied in a general way to
yarn and cloth of all kinds."
It is difficult for persons engaged in
the Scotch Tweed Trade to repress a smile at the arguments used to
bolster up Elbeuf and its manufacture of novelties. Where, one would
ask, is there a textile trade wherein "great variety" is so exigent as in
pleas of the the Scotch Tweed Trade? If anywhere in the world, not in France.
Untenable
French,
M
•
It is indeed idle for French makers to represent themselves as at
a disadvantage. They can buy wool as well, they can build mills as
cheaply, they can command as much capital, they can run their factories.
longer and spread their rents over more production than we can, they
have workmen as skilled as ours, and at much lower wages, and they
have finer taste. Instead of our having a wider market we have a
smaller one-smaller by the extent of France itself. The whole world
is as open to France as to us, and so are our colonies and our own vast
warehouses. To us, on the other hand, France is not so open as she
and the Treaty.
231
A
prospect.
is to her own manufacturers, and now she attempts to close what doors
are yet open. It is for this country to say whether she can afford to
submit to such treatment. Can Great Britain even afford the present
ad valorem duty of 10 per cent. It must be borne in mind that ten
per cent. upon the finished article represents a very great deal more
upon the industry expended in making it. Take, for example (carded),
yarn and cloth made from wool bought in the London sales. The raw
material costs the same in Scotland as at Elbeuf-say 2s. per pound;
and let it cost the same (6d.) to make it into say 30/30 black × white
yarn. This is at present subject in France to a duty of 24d. per lb.-
a duty in reality of over 40 per cent. levied on the cost of production,
which was sixpence. In the same way with cloth, the finished price
of which is about one-half represented by the raw material-a duty of
5d. upon 4/2 is really a duty of 5d. upon 2/1, or 20 per cent. on
British industry. It is no wonder our export of woollen goods to
France is steadily decreasing. Other ten years of such unequal terms 4 black
would reduce it to nothing at all. Besides, to have to contend with
heavy protective duties has a hurtful tendency on the trade, which tries
to force its way past them. Much has been said of late concerning the
marked and growing inferiority of British goods in foreign markets.
May not that have its foundation in the shifts of manufacturers to meet
high tariffs by low price, and consequently by low quality? Competi-
tion has doubtless had its share in the evil, but the necessity of under-
selling tariff-protected fabrics has had much more. Then the dis-
abilities to which foreign tariffs subject the working classes of this
country are obvious. To overcome ten per cent. of duty, five per cent.
has to be squeezed out of the material, and other five out of wages and Effect on
profit. It would seem, however, that when wages have been reduced
to the lowest point at which life can be sustained, and when the pro-
portion of shoddy to wool has been pushed to the extreme limit of
cohesion, a stand will have to be made. Had it not better be made at
once? Let the French treaty be denounced, and let Mr. Gladstone be
encouraged to develope the policy he has already inaugurated of using Denounce
our tax on foreign wines as a lever by which to influence foreign taxes
upon our goods.
wages,
the Treaty.
M
•
232
The Trade of India.
THE TRADE OF INDIA.
In the compilation here brought to a close, questions connected
with India find no place. The commerce of that great depen-
dency, however, should become a subject of consideration on the
principles laid down in the foregoing pages, partly for the sake of
our fellow-countrymen, the artisans at home, and partly for the
sake of our Eastern fellow-subjects themselves, whose true
interests will be promoted by those of the British people being
sensibly seen and felt to be so identified with theirs, that Indian
prosperity will next after that of the nations conduce to the
prosperity of the protecting and ruling nation. It is not for the
greatest good of India, I think, that foreign manufactures should
displace British in her markets.
By way of winding up I recapitulate—
First. The FRENCH TREATY ought not to be renewed unless on
an altogether different basis, and with power either to bring it to
a termination on reasonable notice, or to raise duties if financial
exigencies require increase of revenue.
Second. A competent practical COMMISSION should visit the
principal seats of industry in order to learn what are the convictions
and wishes regarding it of parties engaged therein, and the reasons
for these convictions and wishes.
Third. A like investigation, but without visiting the provinces,
should follow as to the manner in which, apart from treaties, we
apply free-trade principles, and as to the best means of guarding
against these principles being abused by foreign nations.
Fourth. Uneasiness is exhibiting itself regarding the non-
renewal of the French Treaty. The leading journal gives expres-
sion thereto, and urges the Foreign Office to be on the alert, and
not miss an opportunity of forwarding negotiations for a renewal.
The wisdom and advantage of such a course are open to question.
In my opinion Britons ought to feel little concern about the matter,
even if renewal were politic. British statesmanship may well rise
superior to apprehensions as to our future trade with France. This
brochure contains sufficiency of evidence that at the present the
French are getting by much the best of the bargain, and are there-
W
Recapitulation.
fore not likely to relinquish their advantage. Our good neighbours
persist-and no shame to them-in looking sharply after what they
think are their own interests. They naturally believe that ac-
quiring a great portion of our shipping, a principal portion of our
industries, and the chief supply of our markets with whatever they
produce or manufacture, will promote their national prosperity and
greatness, and power and independence. They are indifferent to
the will-o'-the-wisp propagandism, which has strange fascinations
for British statesmen.
233
Among the means for accomplishing their shrewd ends they
have instituted a system of bounties. Until these are better
understood in their bearings and the use that is to be made of
them, a treaty like the present one would be fraught with immense
danger to us.
Another ingenious device is a "general" tariff in which is elabo-
rated a system whereby with little disadvantage to themselves
(that is, by admitting the minimum of foreign merchandise other
than raw materials) they are able to make bargains that will
conduce to the employing at home of their industrial population.
They see clearly, which Britain does not act as if she saw, that to
give admission into the markets of a great country is to confer a
very great boon. The boon of admission into French markets they
will confer to but a limited extent, and in no case without what
they think will be an ample equivalent.
Our procedure stands in strange contrast to theirs. We open our
markets to France, a boon of far greater value than any she is able
or, if able, is willing to confer on us. But we do this in such a
way as to earn no special thanks, for, first, we tell her that it is for
our own interest we do what we are doing; and second, we extend
to all other nations the same advantage gratis.
(C
Getting what I want for nothing, why should I pay a price for
it? Why concede anything? Why do a favour? Why not sell
my custom?" she asks herself.
Our position, now that we know the use that other nations
make of it, is not easy to justify. Surely it is now our turn to
speak and act; we can do so with effect. As we cannot make
abatements of duty, where no duty is levied in favour of friends,
why should we not take up the other quite as powerful weapon,
discriminating duties,—I mean a system of giving free admis-
sion to those nations only which treat us well, and imposing
duties on the manufactures of nations that do not so treat us?
The French, being reasonable people, and moved by self-interest,
would not question and could not resist the force of such a demand.
#
Recapitulation.
as Lord Granville would then be able to make in a becoming
and vigorous manner. His Lordship could say "We are willing
to open our markets, which are the most valuable in the
world, to you our nearest neighbours. We have done so in the
past, we wish to do so in the future. But of course we may rely
on your showing your appreciation of our goodwill by putting us
on the footing of the most favoured nation. Of course if we find
it necessary to impose slight duties on manufactures in order to
compensate for charges within our own country which you have
taught us to take into account, we are free to impose these. You
may in that case rely on our never putting you on any footing but
that of the most favoured nation, just as we expect you to do
towards us. As to wine duties, we are disposed to do what we
can, but further reduction and adroit manipulation of them we
find is extremely inconvenient; and we must, especially with
regard to them, reserve customs duties, import and export, as a
useful means of increasing revenue in future emergencies which
your own nation's former policy shows may suddenly arise."
A parliamentary friend urges that the principles of this brochure
might retard the adoption of free-trade by other countries a
hundred years. Be it so, if they accelerate fair trade, and pre-
serve our industries, and relieve us from the thrall of hurtful com-
mercial superstition (worse in effect than Quixotism) the people
of the empire will rejoice.
234
Would any ship-captain immovably bind his helm or nail his
yards and canvas to the mast? An unarmed soldier would be a
monstrosity!
Can a treaty-negotiator and financier who cannot speak of dis-
crimination be a whit more efficient?
INDEX.
The leading words and subjects exhibited in this Index, and the references to them, are
not to be regarded as complete; and in some cases the pages noted may not be precise in
consequence of changes in the paging, for which an apology is due. It would have required
considerable pains to detect the discrepancies which passed without rectification.
Aberdeen Journal, 159.
Acquits-à-caution, 77, 89.
Acts of Parliament relating to linen manu-
facture, 148.
Advantages, British, relinquished, S. 86;
of France would prevent her retaliat-
ing, 34, 90, 100; of being able to
re-impose customs duties, 25, 68, 109.
ADVOCATE, THE LORD, 59, 161.
Agriculturists, 94, 212; their sufferings,
Amsterdam, 17.
ANDERSON, GEO., M.P., his Patent Bill,
42.
Agricultural machinery, 81, 117; pro-
duce, 8, 47.
Alabamas for France, 24.
Algeria, 142.
Bills, difficulty of passing, 56.
Birmingham, 97.
Alienisation of citizens deprecated, 19, BISMARCK, PRINCE, 117.
48, 68, 86.
BLOOD, Mr. F., 162.
Alkalies exported to France, 149.
ALLAN, SIR HUGH, 108, 112, 197.
Alsace and Lorraine, 87.
AMÉ, MONS., of French customs, his
striking words, 90.
Blue-books, etc., 60, 74, 101, 110.
BOARD OF TRADE, vii, 27, 158, 169, 170,
191, 194, 225; its answer about sugar
bounties, 1, 19, 37; should be differ-
ently constituted, 1, 96, 97; its com-
placency, 27; its returns, 95; foreign
models to learn from, 81, 117; a
Scotch idea, 136.
Boilermakers migrating, 160.
America, South, 197.
Boilers, steam, in French ship, 184, 187.
Bonneterie, 77.
Book manufacture, 20; importations
discouraged by United States, 20; is
threatened, 20.
153, 169.
ANDREWS, Mr., of Coventry, 172.
Anticipations, visionary, 216.
Antwerp, 17.
Apathy, public, 93.
Appendix, 65.
BASTIAT, bounties condemned by, 159.
Beam, the even," 4, 17, 29, 30, 46.
BEAULIEU, MONS. LE HARDY de, 103.
BECK, Mr., of Kentucky, 189.
Beet sugar, 68, 113, 221.
Belfast linen, 17, 18, 84.
Belgium, 41, 81, 85, 87, 96, 102, 105,
132, 151.
BELL, LOWTHIAN, 132.
Benevolence in legislation, 42.
BERNAL of Havre, Consul, his warning
voice, 40.
Bessemer rails, 81.
BAIRD, H. CAREY, of Philadelphia, his con-
demnation of British free-trade, 129.
Bale, 174.
BALSAN, MONS. A., 77, 85.
Area for successful business must be Bordeaux, 92.
large, 8, 46, 69.
“Arithmetic, political,” 119.
Artisans demoralised, 7; their interest,
133, 134; their tendencies as to
free-trade, xvii, 26.
ASSOCIATED CHAMBERS OF COMMERCE,
21, 84, 85, 198.
Australia, 91, 97, 113, 197.
Austria, 89, 131, 151, 170, 171, 182, 230.
Boston Shipping Convention, 116.
Bounty system in France, 169, 196;
unprecedented, 35; on refined sugar
in France, 1, 3, 37, 43, 168, 170.
Bounties, 157, 189, 222; their success, 3,
112; are an attack or aggressive, viii,
40, 186, 200; on shipping, 13, 40,
146, 201; Sugar Bounties Commi-
tee's recommendation, 158; in Russia,
90; may suppress competition, 107;
reconcilable with free-trade, 183;
cost of, 177, 194; large, would make
Austria bankrupt, 171; their relation
to wages, 171; object of, 180, 188, 197.
"
܀
Index.
236
Bourbon, Isle of, 113.
BOUSFIELD, C. E., of Leeds, 83.
BOWES and BROTHER, 152.
Bowling Ironworks, 101.
BRACKENBURY, Consul, 89.
Bradford, 152.
Channel tunnel, xi.
CHARLES II., prohibition under, 121.
Chemicals, 70, 71, 75, 96.
China. See Earthenware.
Bradford Observer, 99.
Branch establishments for Anglo-French Choise of markets, its importance, 8, 29,
trade, 78.
46, 69, 83.
Branding falsely, 97.
Class interests unduly considered, 18.
"Bribes" for British trade and shipping, Clocks and watches, 70, 71, 117.
Clyde, the Firth of, x.
38, 169, 190, 221.
BRIGHT, JOHN, 7, 12, 17, 129, 162; Coal, 2, 4, 15, 24, 28, 47, 65, 66, 67, 69,
letter to, 168.
71, 74, 77, 78, 87, 91, 132, 141, 182,
British colonies, 24, 45, 50, 53, 55, 62, 199; export duties on, 15.
67, 83, 86, 96; armaments, 53; ship- COBDEN, RICHARD, 7, 9, 11, 13, 15, 28, 35,
builders, 106; shipping, 126, 200 45, 65, 70, 79, 90, 93, 137, 141, 143,
ships have no advantage, 69, 107; 150, 164, 166, 174, 212, 213, 220; his
Government connives at wrong, 39; mistaken view as to desirableness of
trade displaced, 85; navy, 113.
importations, 12, 166; would he renew
British Trade and Foreign competition, 85. the treaty? 11; Club, 12, 13, 166, 195,
BRITTAIN, F., of Sheffield, 84, 85.
217; speeches of," 12; on French
BROWN, Sir WM., his faint justification treaty, 12; and Modern
and Modern Political
of treaty, 10, 12, 168.
Opinion, 13, 217; opposed to patents, 30.
COBDEN Prize Essay, 159.
tr
Brussels, 82, 101, 103, 150.
Bulky commodities, whence value of COLBERT, 64, 144.
Colonial lands, 21, 55.
trade in, 2, 17.
Burdens imposed by law on industries
require countervailing duty, 30, 32.
valid seamen.
Calculation, remarkable, as to effect of
short hours, 41.
Caisse des Invalides, 147. See also In- Combinations, 18, 148, 210.
Canada, 197; refined sugar imports
into, 170.
Change of employment troublesome, 19.
Change of public opinion, 34, 78, 94, 99,
174.
Canal, State, between Forth and Clyde, 25.
Capital, levying on, 86, 208.
Capitalist, what he is, 156.
CAREY, H. C., 130.
CARY, JOHN, of Bristol (1695), 64, 118.
CHAMBERLAIN'S, Mr., speech at Birming-
ham, 39, 169.
Chambers of Commerce, Associated, 21,
84, 85; Association of Papermakers,
81; Belfast, S4; Bradford, 99, 166,
168, 198; Coventry, 172; Derby, 74 ;
Dundee, 74; Edinburgh, vii, 43, 106,
112, 191; French, 77, 81; Ghent,
105; Glasgow, 75, 103, 109, 112;
Hull, 104; Leicester, 77, 101; Liver-
pool, 9, 66, 169; Manchester, 14, 15,
78, 110, 131; New York, 116; North
Staffordshire, 79; Prussian, 117;
Sheffield, 84, 174; Salt Chamber of
Commerce, Northwich, 79; Small Arms
Association, Birmingham, 97; South-
ampton, 79; South of Scotland, 91,
105; Yorkshire, 79; on shipping
bounties, 43 ; Union Syndicale of
Brussels, 150; Verviers, 150,
Colonies, ix, 24, 25, 45, 50, 53, 55, 62, 64,
67, 86, 96; French, 67, 83, 165, 194.
Colonies and India, 113.
Commerce wanted, Minister of, 96, 97.
Commercial travellers in Anglo-French
trade, 78.
Commission of inquiry as to the treaty,
and free-trade in manufactures sug-
gested, viii, 36, 166, 168, 169, 170,
199; about emigration, 49.
Committees, Grand, of Parliament, 60.
COMMONS, HOUSE OF, 58.
Comparisons, 198.
Competition, unequal, its bad effect, 3,
231; foreign, 81-83, 91, 132, 211, 222,
224; British prosperity stimulates, 7;
how favoured, 8; Mr. CHAMBERAIN'S
experiences of, 41; British, France
guards against, 15; would be ample
under protection of manufacturing, xxii.
See also Wages, Patents, Sabbath.
Conclusions, viii, 35, 36.
Conference on Imperial Customs' Duties,
24.
Congress of Commerce in Belgium, 101,
105, 150.
Conceit of British, 46, 93, 103.
Conscription, 91, 147.
Conseil Supérieur du Commerce de France,
85.
Consolar fees, 175, 178.
Consumers, one-sided view as to, xv, 19,
206.
Continental Customs' Union, proposed
and popular, 101, 103, 151.
Copyright, 31, 51; treaty with United
States, 20.
Copyright and Patents, 153.
Cosmopolitanism of shipowners and eco-
nomists, ix, xvii, 26, 31, 33, 45, 69,
111, 113, 132, 213, 222.
Cotton manufactures, 2, 22, 71, 72, 75,
78, 89; illustration from, 162; manu-
facturers, 200.
Council, Supreme, suggested, 52.
Counties should be represented by Peers
in Upper House, 58.
Coventry manufactures, 39, 74.
Coventry Standard, 172.
COWLEY, LORD, 66, 143, 166.
CRAIG-BROWN, Mr., 104, 105.
Cries in a Crisis, xxi, 199, 206, 230.
Crisis, a, 172, 207.
Currants, duty on, 34.
CURRIE, MR. JAMES, 43.
Index.
EARTHENWARE, 70, 72, 79.
Economist, 63, 186, 205.
Economist, foreign, xvii, 213, 218.
CROMWELL, 183, 18S.
Cruelty to workmen and employers, 19. Economists at fault, 209, 220, 225,
CUNARD Co., 192.
Economists, British, 125, 219.
Economists of United States, 130, 134.
Edinburgh, formerly silk manufacturers
in, 197.
Edinburgh Courant, 115.
Edinburgh Review, 64.
Education, technical, wanted, 102; re-
ligion and conscience in, 226.
Customers, their value, 4, 20.
Customs charges, 68, 104, 218; registra
tion duty proposed for Scotland, 1701,
136; export duty on rice from Saigon,
194; on what principle levied, 170.
Daily News, 98.
Daily Review, 197, 205, 229.
Daily Telegraph, 96, 189.
Dangers from neglect of Sabbath obser-
vance, 228.
DAVENANT, Dr., "Political Arithmetic,"
120.
DEAN, Mr. G. A., 211.
Debate on free-trade, 26.
Debt, National, 25.
Defences, importance of, 25, 126.
Deputation to LORD GRANVILLE, 108,
202.
237
160; countervailing on spirits, 5; on
imports, 9; a differential duty is prac-
tically charged, 33, 170, 194; on export
on coal, 15, 67; in France, 9, 77, 82,
120, 142; partly paid by foreigners,
128; of customs, an easy means of
obtaining revenue, 17; wholesale aboli-
tion of duties, 11, 17, 34; cause in-
equality, 29; loss of power to restore,
66; a small one on foreign manufac-
tures equitable, ix, xxiv, 30, 206; prohi-
bitive in United States, 39; discriminat-
ing, 90; small, to countervail different
hours of labour, 31, 36, 41, 42; export
and import affect commerce much alike,
33; "general," of customs in France,
34, 37, 91; denunciation of, 90.
Despatch in modern business, 148.
DILKE, SIR CHARLES, 201.
Egg trade, 18, 23, 70.
Elastic fabrics, 74, 77.
Elbeuf, 230.
Electors, new, since French Treaty, 168,
170.
148.
Denmark, 157.
Dependence, a questionable object of the Engineer, 153.
treaty and economists, 12, 121.
Emigration, xxvii, 3, 48, 56, 62, 86, 133,
160; the late Commissioners, 49; a
Commission recommended, 49.
Empire, the British, xxvii, 49, 165.
Employment, 3, 19; change of, 19, 206;
is it easily found? 3; value of, injuri-
ously disparaged in United Kingdom,
20; diversity of, required, 21, 128-9.
Engagement, fulfilment of, by workmen,
England's early trade with France, 120.
DERBY, EARL OF, 89, 153, 154, 167, 169. Entrepôt business and system, 24, 31,
Derby, 173, 198.
69.
Discussion on free-trade proposed, 47.
Dublin refined sugar, 17.
Dumbarton's example, 154.
Dundee, 74; meeting at, 157, 161, 196;
Provost's speech and comparison, 158;
Dundee Courier, 157.
Despondent views of Mr. BRIGHT and Esparto, 28.
LORD SALISBURY, 16, 17.
Essay on State of England, 1695, 118.
European ports, French ships trading
therewith, 175, 178.
Examiner, 164.
Exhibition of 1851, 87.
Expatriation, 19.
Exports to France, 22, 163; list of, 71;
British, are lessening, 22, 89, 205; of
other countries increasing, 87.
Duties to countervail bounties, xix, xxi,
xxii, 1, 100, 215; Prof. ROGERS favours, FACTORY ACT, 75.
238
Fallacies, xv, 222; that cheap food means
cheaper labour, 6, 94; that labour
finds employment in the kingdom, 19.
Fallacies and Tendencirs of the Age, 211.
Farm produce, 6.
FAUCHER, 217, 218.
Index.
"Favoured nation terms," 33, 66, 89.
Favour for British manufactures, 30; for
foreigners, 64.
FAWCETT, PROFESSOR, M.P., 16.
Financial freedom, importance of, 25, 66.
Financial Reform Association, xviii, 203,
Financial statements, 65, 133.
Fisheries, 24, 28, 70, 72, 79; Scotch, 28,
36.
FISON, MR., 150.
Flag, simulation of French, 176.
Flax, 2, 71, 72.
"Folly" of foreign Governments, alleged,
43, 171, 179, 193.
Food, cheaper, 5; monopoly, 7, 127;
limited area for its production, xxi.
Food for United Kingdom chiefly comes
by sea, 174, 193.
<<
Foreign nations would make them-
selves bankrupt," 194.
augmenting in
Foreign powers are
strength, xviii.
Forth, the Firth of, x.
Foreigners are favoured, 18.
Fortifications, xi, 25.
Fraissinet and Co., of Marseilles, 175.
France, 41, 45, 52, 74, 85, 98, 101, 119,
132, 149; exports to, 22,71; are lessen-
ing, 22, 33, 89, 168; jealously guards
against British competition, 15, 43, 87;
trade with, 15, 21, 78, 119; former
sanguine anticipations of what it would
be, 64; trade with, held to be injurious
to England in 1713, 121; excessive
duties in, 77; feeling in, 15; ports
of, 69; prohibitory duty in, 79, 81,
82; advantages of, 17, 89, con-
ceded to, 68, 80, 110; alleged dis-
advantages, 91; emigration from,
small, 20; protection retains popula-
tion in France, 20; imports from, 22,
70; vegetables from, 23, 71; indus-
tries of, 24, 74, 223; fisheries of, 24,
124; geographical position, xxiv, 183;
uneasy relations with, 10, 12, 66;
gains more than United Kingdom, 88;
friendship with, 70; its wealth, 114,
115; strength for war, 114; duties in,
120, 142, 211; difficult rivalry with,
125; its 1664 tariff, 144; no danger
of a French tariff injurious to us, 23,
90, 100; falsely expected downfall of
Protectionism in, 9, 230; the Treaty,
137; her share of benefit from Treaty,
11, 22; restraints of Treaty irksome to
1
France, 14; inconvenient for us, 14;
and irritating, 168; trade indepen-
dent of Treaty, 199.
Free-trade, 16, 157, 202, 214, 216;
policy, 5; discussion on, proposed, 47;
reversal of, 13, 150; has it been
successful? 5, 36; in manufactures,
6, 7, 8, 23, 168; in food, 6, 211;
an inexpressive term, 28; nowhere
else adopted nor in favour, 7, 104;
term abused, 11, 46; false antici-
pations, 16, 45, 162, 163; debate on,
26; change of opinion as to, 36, 194,
199; League in United States, 156;
within the empire, 129; an American
view of, 129; MILL on, 131; favours
foreigners, 163; is ruining our in-
dustries, 163; onesided, 100, 162,
163, 164, 211; too much made of,
221; is not a question of parties,
196.
Free-trade and Protection, by PROFESSOR
FAWCETT, M.P., 16, 208, 220, 221,
222, etc.; misconceptions of, 223, 224.
Freight and transport, 17, 76, 128, 130,
214, 220.
French, small farming, 23; objects, 12,23,
109, 110; tariff, 91, 204 ; negotiations,
how conducted, 23, 24, 34; their ad-
vantageous condition, 34; Mercantile
Marine Bill, xxvi, 40, 161, 175; popular
in France, 180; languishing, 181,
182;
flag, registering ships under, 112;
argument regarding English wages,
123; china, 79; shipping, 67, 68, 79,
106, 108, 109, 111; duties on rags,
82; superiority in manipulation, 83;
Minister of Commerce, 81; bounties
on sugar, 39, 68, 93; trade increasing,
179; commercial policy, 179; Senate,
161, 202, 230; Chamber of Deputies,
161, 230; object of bounties, 180, 188,
197; wines and spirits, 12, 15, 16, 23,
65, 67, 73, 79, 81, 84, 89, 98, 110.
Frenchmen, characteristics of, xviii.
French Treaty, viii, xviii, 9, 13, 16, 65,
66, 74, 78, 99, 128, 137, 166, 172, 197,
217; false expectations, 9, 11, 13, 170,
204; political object, 10, 12; con-
demned severely, 10; accepted with
hesitation, 11; COBDEN's speech on,
12; has disappointed anticipations, 35,
90, 174, 199; runs not on lines of free-
trade, 34; a protective one, 88; pro-
positions, 1872, 15; denounced, 15, 98,
231; text of, 136; restraints imposed,
16, 65; negotiations, 109; inconveni-
ences of, 17, 28, 221; gain by, 23;
one-sidedness of, 66, 67, 69, 173,
200; French superior position under,
28.
Friendship in trade, 4.
Future, the, 7; requirements of, 25, 132.
GALT, Sir ALEXANDER, 21.
GARFIELD, President, 96, 190.
Gazettes, 60.
Index.
Giff-gaff, 4.
GIFFEN, Mr., of Board of Trade, 170.
GLADSTONE, Mr., 11, 16, 35, 65, 98, 133,
231; letter to, 166.
Glasgow, 75; meeting at, 161.
Glasgow Commonwealth,” 16.
Glass, 70, 82, 102.
Gold discoveries, 6.
С.
"General" duties of customs, a way Inequality of Treaty, 66, 69.
they work well, 36, 37.
German Press, 201.
Germany, x, 25, 41, 52, 81, 85, 89, 97, International Congress of Commerce,
102, 105, 151, 183.
101.
Government interference, 170, 219.
Government must be left free, 5; should
protect native industry, 212.
GRANVILLE, EARL, 15, 41, 43, 100, 105,
106, 108, 109, 179, 193, 197, 201.
Greenock, 17, 220.
Greenock Advertiser, 160.
GREG, W. R., Rocks Ahead, 132.
Havre or Nantes, 17, 18, 92.
Hemp, 2, 71.
High seas, French aims on, 24, 27.
HIRSCHBERG, M., 103.
Holland grants no patents, 33, 119, 151.
Home employment, its claim for favour,
19, 67.
Home market, 94.
Home Office, 57.
Hosiery, 77.
Hume, David, ii, 151.
Imperialism, 48, 213.
Importation of manufactures as an object
Improvements in manufactures, how re-
tarded, 3.
Inchkeith, x.
Income-tax, a differential duty, 19, 29,
68.
Indoor work, 2.
Industrial supremacy, 85.
Industries once lost difficult to recover,
158; important to preserve, 209.
Inequalities between Britain and France
under Treaty, 28.
Ingenuity of French negotiators, 87.
Interest of Scotland, ii.
Indifferent workmanship, SS.
Individual interests unduly considered,
18, 48,
239
Intra-imperial free-trade, 51, 128; cus-
toms union, 25, 54, 95, 129, 164, 165.
Invalid Seamen's Fund, French, 176.
Inventors, proper way to reward, 135.
Ireland, 75, 114; manufactures of, 17.
Irish peers, 59.
Tron, 76, 84, 87, 88, 89, 96, 101, 102,
220, 225; iron pipes, 76, 81; works,
continental, 132; United States manu-
facture, 164.
Iron and Steel Institute, 132.
| Italy, 87, 131, 183.
Jute, 2, 71, 72, 74.
Journal de Débats makes a remarkable
exposure, 191.
Journal of Commerce, 200.
KAUFFMANN, Prof. von, 102, 103.
Kelp, 75.
Labour, different kinds of, 2, 214; un-
skilled, 3, 19; immature, 89; hours
of, 5, 31, 41, 63, 78, 80, 83, 92, 151,
162, 173, 198; in France, 76, 88; in
Belgium, 88, 102, 104; age for, 31;
wages in France and Belgium, 106,
214; as an element of cost, 132.
LANCASTER, JOHN, 132.
of treaty, 12.
Imports from France greatly exceed ex-
ports, 163, 205; their character, 5, 22,
99, 152, 163; list of, 70, 205; are arti-
cles that could be produced in United
Kingdom, 22, 166; from refined sugar,
164.
Land, its limited extent incompatible
with protection, 8.
Landed interests, 7.
|
Law, JOHN, of Lauriston, ii, 64, 136.
League, Anti-Corn-Law, its policy, 6, 7,
215.
KENNEDY, Mr., of Foreign Office Com-
mercial Department, 14; report, 101,
104, 105.
KRUPP, 97, 132.
Independence compromised, 66, 69, 124. Leith Burghs Pilot, 157.
India, 49, 54, 55, 91.
India's true interest, 232.
Indian trade, 40.
League, projected Industrial, 163.
Leaning towards home manufactures is
fair, a, 4.
Leicester, 77.
Leith meeting, 157, 166, 168, 196, 197.
Liberal Association, East and North of
Scotland, 196.
Liberal cause, danger to, 196.
Libraries, public, 60; industrial, 103.
Libre échange, 105.
Index.
240
LIMOUSIN, M., of the Gironde, 103.
Linen, 71, 72, 74, 84, 102.
Miners of S. Wales, 17.
MOLINARI, M. DE, 150.
Lines and subsidies of packets, 6, 24, 27, Money and Trade Laws, ii, 64.
108, 113, 116, 148.
Lion, the British, 168.
Liverpool, 67, 202; tonnage in 1815, 1;
Chamber of Commerce, 9, 66, 166;
Liverpool Bankers, 25, 162; Courier,
116, 201; Daily Post, 66; Mercury, 6;
Exchange buildings. 96; meeting at, 99.
Local government, 57.
London, 50, 57, 77, 92, 95; population
of, 17; its accessibility for European
trade, 17.
Lords, House of, 57.
Lost trades hard to recover, 132.
Louis XIV., 120.
Loyalty, a peculiar view, 13.
Luxury and luxuries, ix, 6, 11, 23, 81, Navies, 12.
84, 90, 151, 206, 211.
Lyons, Lord, 40.
Margins small in modern commerce, 31,
167.
Marseilles, 175.
MONGREDIEN, 99, 226.
Monopolies, 127, 136.
MUNDELLA, M.P., Mr., 211.
Museums, against opening of, on Sunday,
227.
MASON, HUGH, M.P., 14; and SLAGG, 110.
MASON, STEPHEN, Glasgow, 103.
Member's opinion, an ex-Scotch, 165.
Mercantile Marine Bill of France, 146,
161, 175.
Merchant, the British (1713), 64, 119.
Mersey, X.
Mexico, 197.
Nantes, Edict of, 68.
NAPOLEON, EMPEROR, the Third, 11, 12,
13, 66, 69.
National interests should predominate,
xxiii, 18; spirit of old, 27; debt, ix,
xviii, 50.
Nation's first concern, 50.
Migration of industries, 96.
Military service lost, 20.
Mills, cost of, 74.
MILL'S Political Economy, 127, 130, 131,
163, 196, 219.
Mineral oils, 75.
M'CULLOCH'S Commercial Dictionary, 1, Négotiant Anglois, le, 119.
36, 163.
Negotiations, abolition of duties hinders,
16.
Machinery, 102.
MACIVER, M.P., Mr., 113.
MACLAREN, DUNCAN, 161.
Mail subsidies, 27, 116.
MALÉZIEUX, M., 91.
New foreign factories have advantages
over average British, 4.
Newcastle and Hull, 17.
New York, 197.
Manchester, 78; Chamber of Commerce, New York Carpet Trade, 117.
14, 15, 78, 110, 131.
New York Tribune, 130.
Manchester Examiner, 15.
Nobles, what they can do, 37, 149.
Manufactories, new, their superiority, xxv, North British Daily Mail, 161.
4, 18; established by Britain in France, NORTHCOTE, SIR STAFFORD, 194.
29; in U.S., 29; Germany, 29; ample Norway, 183.
room for more, therefore no mono-
poly possible, xxi.
Northern Whig, letter to, 207, 208, 215.
Manufacturers, 225; British, ill-treated, | OHLSON'S summary of evidence, 170.
xxii, 31.
Operations now-a-days on large scale, 8.
Manufactures, displacement of home, 12, Oxford, 159.
23, 211; protection does not raise prices
of, 8; free trade in, 6, 7, 8, 23; which
are profitable to a country, 118, 119,
205.
Native industry, 127.
Naval supremacy, 86, 161, 193, 203.
Navigation, questions, 79, 126, 127, 147;
laws, 183, 188.
Navvies, SO.
Packet lines newly formed in France, 197.
Paisley, 29; meeting, 159, 160; Express,
159.
PALMERSTON, Lord, 13.
Palm oil, 75.
Paper trade, 28, 71, 72, 81, 124; hang-
ings, 82.
Parliament, 32; improved procedure,
199.
Parliamentary machine, 56; papers, 60;
committee on sugar bounties, 158.
Paris, 82.
Party spirit debarred from commercial
legislation, 37, 47, 201, 216.
Patents, cause disparity between British
and foreign manufactures, 33; insti-
tute evil monopolies, 33; a sound
view of, 136.
Patent-laws, ix, 68, 167, 226; of France, a
shrewd feature in them, 29; injurious
Index.
to British trade, 29; irreconcileable
with free trade, 30; Bill 1881, 153;
Royal Commission on, 153, 167; Com-
mons Committee on, 153, 167; Com-
mission proposed, 155.
Patent-office publications, 60.
PATERSON'S "Proposal of Council of
Trade" (1701), 136.
Patriotism, 212; German, 102.
Pauperism, 5.
Peace, 54, 163, 168; agitation, an ana-
logy from, 26.
Peasant proprietors of France, 114.
Pensions for French seamen, 44.
Peel, Sir Robert, his policy, 6, 16.
Peerage, the, 58.
Protective countervailing duty wanted,
31; effect on prices, 221.
Perfection of manufacture hindered by Prussia, 131, 132; economic Council for,
unfair trade, 3.
117.
Publishing business, 20.
PERRY'S "Political Economy," 134.
Philadelphia Board of Trade, 116.
Pilotage in France, 180, 183.
PITT, WM., 64.
Plural voting, 57.
Policy for the Empire, 21, 213.
Political Discourses, Hume's, ii.
Political Essays, Campbell's, 64.
Poor, treaty favours the rich, not the, 11,
84, 90.
Population, benefited, 5; increase of, 20;
strength of an empire, 21; France can
supply employment for, under Treaty,
29.
Porcupine, 199.
Porterage, 2.
Portugal, 87, 89, 150.
Postal service subsidies, 27.
241
far legitimate, 126; is liked by manu-
facturers, 4; its advantages, 36, 68, 106,
212; a sop, 17; freight as a, 17, 76, 128,
130; claimed by France, 9; sometimes
successful, 68; prosperity in protect-
ing countries, 6, 162; SMITH on, 125;
MILL on, 127; a misleading argument
for, 150; how far justified by high
wages, 151; "Does Protection exist,'
190; object of, 209.
Protectionism, xvii, 17, 204; danger
that too much will be demanded, 194;
French, 28, 65, 90; spreading in other
countries, 207.
31
Printing and Binding abroad, 20.
Prices of necessaries not all lowered, 5.
Production, cost of, 132.
Profitable business, 5.
Propagandism of free-trade, 9, 13, 32, 44.
Proposals for public works in Edinburgh,
64, 149.
Quay duties in France, 175, 178.
Quixotism of early free-trade, 9.
Post-Office, 60, 147.
Poultry of France, 18.
Religion, its place in politics, 226.
POWELL'S, G. BADEN, Protection and Bad Religious questions, 226, 227.
Times, 129.
Republique Française, 180.
Presidential Election in U.S., 117.
Press, 93, 94.
Retaliation, viii, 28, 96, 98, 105, 109,
110, 126, 168, 196, 197.
PRINCE CONSORT, Memoirs of, 13, 65.
Printed Goods, 75.
Revenue, 65; power to increase it de-
sired, 16, 25.
Reversal of free-trade policy, 13.
Revue des Nations, 150.
Rhondda Valley miners, 17.
Ribbon trade, 71, 74.
RICARDO, 163.
RIPLEY, SIR H. W., 100.
RITCHIE, M.P., 201.
Races, analogy from, 33.
Rags, French export duty on, 28, 82.
Railways, introduction of, 6; carriage,
2, 4; acquisition by the State, 25.
Receipts or wages claim more attention
than expenditure, 19.
Reciprocity, 98, 100, 104, 217; of free-
trade anticipated, 13; an axiom, 36.
Recovery of commercial freedom, 14.
Refineries becoming fewer in France, 170.
Regularity of demand essential, 97.
Relation between mother country and
Colonies, 45.
Prosperity, its causes, 6, 207; its dangers,
7, 45, 133, 150; transient, 7; falsely
attributed to free-trade, 7, 88, 104.
Protection, 40, 101, 104, 156, 174, 181, | ROGERS, PROF., M.P., 12, 13, 130, 213,
208, 215, 222; retains population in
France, 20; in Colonies, 55; trade thrives
under, 3; enables United States to bear
burden of Patents, 29, 167; rash state-
ments regarding, 4; an inappropriate
term for registration duties, 37; how
218.
|
Q
Rivals, foreign, their advantages, 4.
Rochdale, COBDEN's speech at, 12.
Rocks Ahead, 132.
Roubaix, or Lisle, 19, 81.
Royal Family, 50.
Runcorn, 79.
RUSSELL, EARL, 143.
Russia, 97, 150; bounties in, 97.
242
Sabbath, an illustration from, 158; its
foundation and character, 228; how
it affects competition, 229.
"Sacrifice" consciously made a, 10, 11.
SAINTELETTE, M., 103, 150.
Saigon circular, 194.
Sales in advance, 148.
SALISBURY, Lord, 15.
Salt trade, 79.
SAMUELSON, B., 153.
Saturday Review, 114.
Savoy, 65.
Saxony, 131.
Index.
Scotch peers, 58, 59; fisheries, 124.
Scotland, 75, 149, 151.
Scotsman, 191.
Scottish woollen manufacturers, 98.
Seamen for French navy, 24, 147, 148,
175; abundant, 182, 192; pensions to
French seamen, 176; wages of, 182.
Secretary, letter to a Greenock, xix.
SEIGNEUX, M. DE, 104.
SÈVE, M., 104.
Session, the Parliamentary, 56.
SHADWELL'S Political Economy, 129.
Sheffield Independent, 174.
Shipbuilders, 112; British, 178, 192, 202,
229.
Shipbuilding in France, 44, 108, 161,
176, 183, 229; in United Kingdom for
France, 113, 187.
Shipmasters and the Bounties, 229.
Shipowners, British, have no advantage,
xxvi, 69, 107, 213.
Ships now building in France, 184; and
Shipping, British, 2; interest, 9, 11;
discrimination or retaliation, 5; neces-
sary for nation's power, 181; transfer-
ence to France, 26, 27, 69, 113, 178,
184, 208, 213; to Spain, 27; French,
177; inspection of, 180, 184.
Shipping Bounties, 201, 229; freedom
to counteract requisite, 159, 161, 193,
196, 198; a national grievance, 108;
in their effect, 13, 24, 27, 43; will
succeed, 26, 175, 193, 195; their
popularity in France, 44; French
pleas for, 44; magnitude of, 182,
193; unparalleled, 193; how they
will benefit France, 182; their dura-
tion, 161; object, 175, 184, 191.
Shipping Gazette, 109, 110, 112, 116,
175, 187, 201.
Ships, colonies, and commerce, 69.
Silk, 2, 71, 73, 74, 78, 89, 90, 95, 120,
197, 198, 220, 224; trade almost
destroyed, 39, 96, 100; why specially
valued, 2; importations of, 172.
Situation, its importance to manufac-
ture, 4.
SLAGG, JOHN, M.P., 14, 101.
Small arms, 132.
SMITH'S, ADAM, Wealth of Nations, 99,
106, 125, 163, 196.
Soap, 81.
Social Science Congress, 45, 56.
Solidarity, national, 18.
South America, 83; trade, 24; lines of
packets, 24.
Spain, 52, 84, 87, 89, 98, 150; its hostile
commercial policy, 16, 162.
Squaring," 111.
Statist, 190.
Staves as an illustration, 18.
CC
St. Etienne, 172, 173.
St. James's Gazette, 117.
Strikes, 88, 92, 148.
Subsidies, 27, 116, 183, 186, 190, 192,
202; to American liners, 190.
Sugar refiners, 89, 112, 113, 118, 191,
202, 221; their capital, 1, 3; the work-
men they employ, 1, 158, 197; extent
of their trade, 1; their trade a staple
one, 3, 4; for refining, small protec-
tion sufficient, 9; imports into Canada,
170.
Sugar trade, 2, 17, 39, 68, 160, 220;
British lump trade nearly extinguished,
26, 195; advantage of cheap, 171.
Sugar duties in France, 137, 138.
"Suicide," national, 94, 98.
Sunday, 227, 228; political meetings
objectionable, 227.
Superior trade position of the British, 8,
47.
Surtaxe d'entrepôt, 79, 182.
Surtaxe de pavillon, 40, 79.
Switzerland, 52, 81, 82, 90, 112, 130,
150; grants no patents, 33.
SYME, DAVID, Outlines of an Industrial
Science, 219.
Tariff of France (1664), 16, 64, 144.
Taxation on Continent, 17; equality of, 31.
Taxes, 127; levied by patentees, 30, 31.
Tax-payers lost, 20.
Telegrams, sixpenny, 32.
Temperance societies, 23.
Textile manufactures, 2, 85.
Theorists, heartless, 4.
THORNTON, MR., 130.
THIERS, M., 217.
| Thread, 29, 75, 131.
Thrift, 149.
Throne, the, 51.
Times, 15, 24, 55, 204.
Tinplates, 82.
Trades Unions, 75, 83; Council, 158,
159, 161.
Trade, the gains by, ii.
Treaties, commercial, short duration pro-
per of, 46, 217; objected to, 13, 14,
Index.
36, 46; inequality by, extenuated, 13; | VALUE of an emigrant, 20, 49, 62.
restraints of French, inconvenient to Vegetables from France, 23, 71.
France, 14; of a better character de-
sired, xxiii, 16; Mr. FAWCETT on
inconvenience of, 25; negotiations
difficult since duties abolished, 16, 26,
98; of Utrecht extended its privileges
to all subjects of Great Britain, 121;
ribbons could come from France with-
out one, 172; with which countries
justifiable, xxiii.
Turkey, 89.
WAGES of seamen in France, 177; higher,
xxii, 5, 6; in England than France
and Belgium, ii, 30, 77, 78, 79, 83, SS,
104, 123, 173; ought the tariff to take
this into account? 35; reduced, 171.
WALSHAW, Sir J., 89.
WALTER'S What is Free-trade? 130.
War foresight in France, 11, 24, 27,
44, 147; desire to avoid war with
France, 10, 13; a contingency, 16, 25;
readiness for, 50; provision for service
in, 32, 37, 180, 186; in light of ship-
ping bounties, 43.
WARRACK, Mr. JNO., 193.
Watch trade, 39.
Water, 4.
United Kingdom, its favourable position
in manufactures, 8, 47, 86; not so
favourable, xviii; inequality between
different parts of the, 18; weakening
of, xvii, 24; dependence of, for sup-
plies of food by sea, 193.
United States, ix, 52, 55, 62, 87, 95, 98,
102, 150, 152, 183, 195, 200, 204, 215,
216, 220; what LORD SALISBURY
expects, 15; protectionist policy in, 16,
117, 129, 153, 162; high tariff in, 17;
debt in, 17, 94; seeks employment for
population, 20; magazines, 20; com-
petition, 87, 117, 132; lands, 21; may
adopt shipping bounties, 25; prohibi-"Wool," 117.
tive duties in, 105; bounties 109, 116,
189; shipbuilders in, 116; Economist,
117; Presidential election in, 117;
deduction of United States national
debt, 162; prosperity of, 162; ship-
ping bounties, 200.
Unity, imperial, 24.
Use of home-made productions, 37.
Utrecht, treaty of, 1713; extended its
privileges to all subjects of Great
Britain, 121.
243
Weakening of United Kingdom, 24.
Wealth, growth of, 6.
West India planters, etc., 44, 158.
Wharfage dues, a Scotsman's proposition,
136.
Wine and spirit duties, 136, 139, 140,
206. See French.
WILSON'S Political Economy, 130.
Woollen manufactures, 1, 22, 71, 73, 77,
79, 83, 89, 99, 106, 123, 152, 224, 230.
Working-classes, 26, 93, 117, 162 ;
engagements, fulfilment of, by, 148;
their happiness a first consideration,
ii; their interest, etc., 100, 196; an
appeal to, xxvij.
Workmen's National Executive Com-
mittee, 1; English workmen employed
abroad, 88.
WRIGLEY, Mr. J., Huddersfield, 83.
EDINBURGH: T. AND A. CONSTABLE,
PRINTERS TO THE QUEEN, AND TO THE UNIVERSITY.
244
NOTICES of COPYRIGHT AND PATENTS, VOL. I.
[The Compiler takes this opportunity (which, in the circumstances, he
may be permitted to do) to thank the several writers who have so
generously promoted his endeavour.]
"His volume, which is provided with an excellent index, really furnishes
quite a store of information of a kind useful to any one writing upon the
subject, or for other reasons anxious to seek wisdom in that multitude of coun-
sellors in which we have high authority for assuming that it will best be found."
-Athenceum.
"As a repository of facts and ideas connected with a topic of international
importance, of direct interest alike to readers and writers, a work such as this
has a claim to very general attention. Its contents are well arranged, amply
catalogued, and excellently printed."-Bazaar, Exchange, and Mart.
"This is the most important treatise upon the law of copyright that has yet
been put in circulation, the information it conveys being as valuable as the dis-
cussion of the subject, of which it treats, is sound and practicable. The volume
before us is the first of a series to be published at a remarkably cheap price,
whence, undoubtedly, the very best results that can be conceived will flow."
Bell's Weekly Messenger.
"That Mr. Macfie has done his work conscientiously and well there can be
no doubt, and having borne this testimony, we must claim exemption from the
task of going into any controversy on the subject."-British Mail.
"Full though it is of valuable essays and information from many sources on
a subject of great interest to all who are connected with literature, much of it
hardly falls within our special province of practical religion and religious in-
telligence. Perhaps the design is to call our attention to the chapters which
are devoted more particularly to religious publishing societies, to monopolies of
Bible printing and of printed sermons, to the means of diffusing healthful
literature in India and China,- -as also to the painfully important subject of
Bad Books and the Literature of Crime. But the whole subject is a very
important one.”—British Messenger.
"It is a comprehensive summary of technical information on a subject which,
while it directly interests publishers and authors, also concerns, in some measure,
the whole community."-The Christian.
"Mr. Macfie has most industriously done a useful work in the interests of
the diffusion of cheap and healthy literature."-Daily Review.
"Mr. Macfie's volume is a very readable work, and presents in a suc-
cinct form the case against patent rights as put by their ablest opponents."-
Echo.
"The work contains much information which will be welcomed by those who
take an interest in the subject, and a copious index makes it specially valuable
for reference."-Edinburgh Evening News.
"Mr. R. A. Macfie has put together a useful collection of evidence and
opinions on a question in which the special difficulty is to reconcile the claims
of the individual with the advantage of the public. Its general tenor is to show
that the abolition of any monopoly of copyright, and the substitution of a small
royalty on every copy sold, would at once secure adequate remuneration for
the author, and make books more cheap and more plentiful."-Graphic.
"Mr. Macfie, who has for several years studied the effects produced by the
laws relating to copyright and patents, and is thoroughly convinced of their
mischievous tendency, has in this volume brought together a great mass of
245
material upon the first of these subjects, which will prove of great value alike
to the opponents and to the defenders of the present system. This volume,
though, as its author remarks, not a book to be read through, contains so much
that is useful, and so many suggestions upon the subject of copyright from
different points of view, that we have no doubt it will be consulted by those
who are anxious to form a sound opinion upon the questions discussed in it.".
Journal of Jurisprudence.
•
"We have received the first volume of this work, which is compiled by a
former M.P. for Leith, R. A. Macfie, Esq., of Dreghorn Castle, and dealing in a
comprehensive and thorough style with questions of the utmost importance at
present agitating the literary and scientific world, it deserves general attention
and perusal."-Leith Herald.
"We can commend this compilation of materials to all wanting to increase
their knowledge of the question of copyright, and of the laws which regulate it;
as also of the projects of laws still further to affect it. It is a vade mecum for
any one anxious to 'get up' the whole subject. We hope the book will go
into many hands."-Literary Churchman.
•
•
"As repositories of facts and ideas on copyright, or, as the author defines it,
'subject-matter the original and sole creation of which can be easily established,'
and patent right, which concerns inventions which may be and commonly are
originated by a plurality of persons in complete independence and ignorance one
of another, these volumes, when completed, will be invaluable to the statesman,
the author, and the student of political economy. . . Meanwhile the other
plan, which Mr. Macfie seems to have borrowed from America, namely, paying
authors a royalty, is just and equitable, and is advocated in these pages with rare
ability. It is time we were finished with the old forty-two years' system. If
George Stephenson had received a forty-two years' monopoly for railways, when
could they ever have been made? If the electric light is to come into general
use, the public of this country would never tolerate a forty-two years' monopoly
of the new invention. Mr. Macfie has done full justice to this side of the ques-
tion, which leads us to anticipate with much interest the second of these volumes
-announced to be published immediately-in which he will discuss the patent
question under free-trade, and suggest a solution of the difficulties in patent
reform as they have presented themselves to him, Mous. Chevalier, and other
economists at home and abroad."-Liverpool Mercury.
"Mr. Mache has collected, with very great industry, an immense hetero-
geneous mass of information from all sources bearing upon the subject of
copyright—which, although thrown together without any attempt at arrange-
ment whatever, will be found very useful to students of the subject, and which
an excellent index renders very intelligible."—Mayfair.
'We heartily commend this volume to the reading public as a useful com-
pendium of opinion on one side in regard to a question of prime importance.'
North British Daily Mail.
ܙܕ
"Mr. Macfie is to be congratulated on the ability, the patience, the clearness
and the painstaking industry which he has displayed in dealing with so compli-
cated and difficult a subject. He modestly calls his work an 'agglomeration,'
and states that the material in it is 'piled up' not in order to be read through,
but only as a depôt in which diligent and irksome search for information will be
rewarded.' But every one who has seen the book will agree that no apology is
needed. It is one which can and will be read through with attention by all who
are interested in the subject, and undoubtedly it will amply repay the time and
trouble so spent. . . . What Mr. Macfie proposes is practical, easy of attainment,
and equitable to all concerned; and we believe the time is not far distant when
some definite changes in the direction for which he contends will be made. He
himself, like many other pioneers in a good work, may not see the full fruit of
his labours, but he will have the satisfaction of knowing that others after him,
profiting by the light he has thrown upon the subject, will be enabled to carry
forward these labours to a successful conclusion; and to Mr. Macfie will belong
the honour of this result."-Porcupine.
246
"An immense amount of valuable information on the copyright question will
be found in Mr. Macfie's Copyright and Patents for Inventions (Edinburgh,
T. and T. Clark), which is deserving of the attention of all who are interested in
the subject."-Rock.
"Mr. Macfie of Dreghorn has, in this volume on Copyright—which, it
seems, he intends to follow up by a similar one on 'Patents'-brought together
from various sources a great mass of matter on the subject to which it relates.
He describes the result 'not as a book to be read through, but only as a
depôt in which diligent and irksome search for information on two important
subjects will be rewarded.' Seeing that he has affixed a pretty complete index
to the volume, this description of it is in one sense too deprecatory."-Scotsman.
•
"It is such a repository of facts and ideas concerning copyright, that it
cannot fail to be made use of, and common gratitude for collecting such a mass
—a real depôt of information-should secure ample acknowledgment. It is not,
of course, a book to be read through, but for (e.g.) any speaker on the subject,
and for every one who has occasion to make up his mind about it, or to come to
a decision, the book is one for which he will be thankful, while to the mere
ordinary reader it is full of interest. Of the great industry here displayed,
and its worth, that is, of the utility and value of what has been here gathered
together, there can be but one opinion; the compilation is very much to be
commended."-University Magazine.
:
Price Five Shillings, pp. 426.
Copyright and Patents for
Patents for Inventions.
Pleas and Plans for Cheaper Books and Greater Industrial
Freedom, with Due Regard to International Relations, the
Claims of Talent, the Demands of Trade, and the Wants of
the People. Volume I.-Essay on the Origin and Progress of
Literary Property, by LORD DREGHORN, F.R.S.E.; Evidence given
to the Royal Commission on Copyright in favour of Royalty
Re-publishing; Extracts, Notes, and Tables Illustrating these
Subjects, Copyright of Design, etc.; compiled by R. A. MACFIE
of Dreghorn, F.R.S.E., Life Member and Honorary Life Director
of the Liverpool Incorporated Chamber of Commerce. Being a
Sequel to Recent Discussions on the Abolition of Patents for
Inventions, with Suggestions as to International arrangements
regarding Inventions and Copyright, 1869."
(C
:
Edinburgh T. & T. CLARK. London HAMILTON, ADAMS, & Co.
Paris: GUILLAUMIN ET CIE. New York: SCRIBNER & WELFOrd.
Philadelphia: HENRY CAREY BAIRD & Co. 1879.
Vol. II. on PATENTS is in the Press.
Price Five Shillings.
Recent Discussions on the Abolition of
PATENTS FOR INVENTIONS IN THE UNITED KINGDOM,
FRANCE, GERMANY, AND THE NETHERLANDS :
EVIDENCE, SPEECHES, AND PAPERS in its favour, by Sir WIILLIAM ARM-
STRONG, C.B.; M. BENARD, Editor of the Siècle and Journal des Economistes;
Count Von BISMARCK; M. CHEVALIER, Senator and Member of the Institute
of France; M. Fock; M. GODEFROI; Mr. MACFIE, M.P., Director of the
Liverpool Chamber of Commerce; Sir ROUNDELL PALMER, M.P., late Attorney-
General, etc.; Right Hon. LORD STANLEY, M. P., Chairman of the late Royal
Commission on Patent-Law; JAMES STIRLING, Esq., Author of "Considera-
tions on Banks and Bank-Management," "Letters from the South," etc.; and
others. With SUGGESTIONS as to International Arrangements regarding
Inventions and Copyright. 1869.
1
Price One Shilling.
Colonial Questions Pressing for Immediate
SOLUTION IN THE INTEREST OF THE NATION AND
THE EMPIRE. PAPERS and LETTERS by R. A. MACFIE,
Member of the Royal Colonial Institute. 1872.
LONDON: E. STANFORD.
From whom copies of the afore-mentioned publications may be had.
A limited number of the Works contained in the foregoing Advertisements is
available GRATIS for Public Libraries, on application to the Author, by post-
card addressed as below.
The Ante-Nicene Christian Library,
Published by MESSRS. T. & T. CLARK, OF EDINBURGH,
Supplies a desideratum, the inconvenience of which must often have
been experienced. In conformity with an arrangement cordially
assented to by the Publishers, Mr. MACFIE, whose Address is sub-
joined, respectfully intimates to Missionary Societies, hitherto
without the "LIBRARY," which have stations of importance
sufficient to warrant their being gratuitously provided with sets
of the twenty-four Volumes, that he will, on receipt of a duly
authorised application, accompanied with an engagement that they
will be carefully kept as station property, favourably consider
the several cases, and, if satisfied, will deliver a set to each at
38 GEORGE STREET, EDINBURGH. To a more limited extent, a
similar offer is made to Libraries or Training Institutions of such
character and importance as may appear to warrant the presentation.
The Applicants must be prepared to state that the funds of the
Institutions are not in a condition to warrant a purchase of these
Volumes, and to undertake that reasonable facilities will be given for
consulting them. The selling price is Six Guineas the set.
DREGHORN, COLINTON, EDINBURGH,
UNIVERSITY OF MICHIGAN
3 9015 06449 2039

Will be Published Early in April,
COPYRIGHT AND PATENTS
Price Five Shillings.
VOLUME II.
A Limited Number of Copies will be supplied by the Pub-
lishers in London and Edinburgh to Public Libraries, and to
Institutions connected with Manufactures and the Employment
of the People, on receipt of Stamps for the Postage. Application
to be Addressed to Mr. MACFIE, Dreghorn, Colinton.
The Publisher is authorised to offer Special Terms for any
considerable number of "CRIES IN A CRISIS" for distribution
before the type is distributed.
.....
S
**

12.