“ The great mass of manufactured commodities were produced in the United Kingdom more cheaply than in foreign countries, and would not have been imported, with duty or without, except in sporadic amounts for some special qualities. The changes hence involved little real readjustment of industry. There is thus some ground for the assertion that the policy of free trade was not adopted by the United Kingdom until its industries had reached the stage of being independent of protection. But this does not hold good of some manufactures ”

“ Resort is made to tariffs, or duties on imports, partly to secure revenue, partly to affect the course of industry within a country. Strictly speaking, these two objects are inconsistent with each other; since a customs duty, in so far as it causes a domestic industry rather than a foreign to supply the market, ceases to be a source of revenue. ”

“ During the first period the prohibitive legislation of the 18th century was retained, largely in consequence of the Napoleonic wars. The commercial treaty of 1786 between Great Britain and France has already been referred to as making a breach in the restrictive system of the 18th century; and in the early years of the French Revolution a similar wave of liberal policy is to be seen. But the great wars led to the complete prohibition of the importation of manufactures, reaching its climax in N apoleon's Continental system. ”

“ The tariff system of Germany, however, at the beginning of the 20th century, remained definitely Protectionist. _ In other important countries changes in policy have taken place similar to those noted in Germany and in France. The era of moderated tariffs, which began with the great treaty of 1 860, lasted for about twenty years, and was followed in Italy, Austria, Belgium, Switzerland and Spain by a reversion to protection, although usually to a less high system of protection than had prevailed before 1860. ”

“ After the foundation of the German Empire, the duties of the Zollverein became those of Germany, and for a time the liberal regime was maintained and extended, with respect to the tariff as with respect to other matters. But in Germany, as in France, a combination of political and of economic forces led before long to a reaction towards protection. Bismarck broke with the National Liberals, who were the champions of free trade; at the same time the agricultural depression set in, and the agri- cultural interest demanded protection against American and other foreign competition. ”

“ Hence the importation into France of virtually all manufactured articles from foreign countries was completely interdicted; and such was the legislation in force when peace came in 1815. This system doubtless was not expected to last after the wars had ceased, but, as it happened, it did last until 186O. Successive governments in France made endeavours to break with the prohibitive system, but naturally met with strong opposition from the manufacturing interests, not prepared to meet the competition of Great Britain, whose industries had made, and were continually making, rapid strides. ”

“ The Corn Laws had great political strength, serving as they did the interests of the landowners, whose hold on parliament was still very strong; but the general economic situation in Great Britain, from the rapid growth of the manufacturing population and the imperative need of more food, made the abolition inevitable. ”

“ The system then established has often been spoken of as a free trade system, but was in reality only a system of moderated protection. In 1857 duties were still further reduced, the rate on most protected commodities going down to 24 per cent., and remaining at this comparatively low level until the outbreak of the Civil War. The second great period in the tariff history of the United States opens with the Civil War. It is true that the first steps towards a policy of higher protection were taken just before the war began. ”

“ The excitement and opposition in Germany to the Prussian tariff led to customs legislation by the other German states, some smaller states joining Prussia, while the southern states endeavoured to form independent customs unions. Finally, by gradual steps between 1831 and 1834, the complete Zollverein was formed, notwithstanding popular opposition. All the German. states formed a customs union, with free trade between them, except so far as differing internal taxes in the several states, made some modifications necessary. ”

“ Frankfort in 1871 contained, in place of the previous d80 detailed commercial treaty with Germany, the simple “most favoured nation ” proviso. The guarantee which each country thus gave to the other of treatment as favourable as that given elsewhere became irksome to France, sore after her defeat in the war. More important, however, in undermining the liberal system, was the change in agricultural conditions which began to set in in the decade of 1878~88. Then the great improvements in transportation caused competition in agricultural products to be felt, especially from the United States. ”

“ The great increase in population since the middle of the 18th century had made England a corn-importing country, especially with the rapid growth of manufactures in the early years of the 19th century. ”

“ Such was the case not only with some metals, such as lead, zinc, copper, but still more strikingly with textile materials such as wool, flax, and the like, and most of all with agricultural products such as grain, meat and meat products, timber. In regard to all these, the abolition of protection meant a real sacrifice to domestic industries. The second feature to be noted is the simplification which resulted in the administrative features of the English tariff. ”

“ In the next ensuing session of Congress, in 1889-90, the Republicans passed a new tariff act, known as the McKinley Tariff Act, because Mr McKinley was then chairman of the House Committee in charge of the bill. It ad- isw. vanced duties materially on a considerable number of commodities, both raw materials and manufactured articles. The duties on wool were raised, corresponding changes made on woollen goods, the duties on cottons, linens, some silks, and velvets considerably raised. ”

“ As a planting and slave-owning region, the South inevitably had no manu- factures: it felt that its cotton was sure to find a foreign market, and would gain little from the establishment of a domestic cotton manufacture within the country ”