Restraint of trade

“ If a nation cannot pay for its imports, the trusting nation will be the loser, and the importing nation the gainer. But no importing trade could continue with an inability to make payment. It would inevitably stop of itself. Does not this fact explode all the theories about the balance of trade? Does it not prove that commerce must contain some reciprocal compensating ingredients, or cease, according to its own laws, to exist. ”

“ Is not the price of shirting sufficiently high without enhancing it to enrich capitalists? If money only will be received for foreign goods, must not the trade end soon enough of itself, without hastening its death by restrictions, and infallibly effect one object of the protecting-duty policy — that of compelling us to manufacture. We have not exportable money enough to pay for one year's importation, and when our money is out importations must cease, if our agricultural products will not be received in payment; and when importations cease, manufactures will be in sufficient demand. ”

“ Investors, demanding interest payments from foreign debtors, will no longer be able to maintain the attitude that imports menace the prosperity of the country and should be cut down by the restrictions of the tariff. Exporters will find that the current is set against them, and that they can broaden their market only as they stimulate still greater growth in the import trade. ”

“ Here the sacrifice is imposed on all the consumers of the "protected" commodity, that is, on the entire people, to the extent that they come in contact with the commodity in question. Export duties on raw materials, on the other hand, compel one single class of the people to make sacrifices in order to advance the favored industry. [A3-8-2] Export premiums for commodities on which labor has been expended are distinguished from import duties as the offensive from the defensive: the former promote the artificial trade, the trade which has gone beyond its natural basis, the latter curtail it. ”

“ Without denying that the free importation of foreign goods, coupled with the heavy duties levied by other countries upon our exported articles, has seriously diminished the profits of certain of our manufacturers, and has thereby injured the persons by them employed, those who have watched the recent course of British trade are compelled to see that other causes have been at work to account for much of the depression. ”

“ Emphasis is laid instead on the fact that in the last analysis the trade is of goods for goods, not of money for goods, and that a tariff on imports reduces, not only imports, but exports also,—that it merely interrupts temporarily the virtual barter between nations. ”

“ Your moneyism with its constant devaluations, foreign exchange panics, oppressive custom duties, and tariffs on imports and exports, creating economic disruption, with different standards of life, is one of the main causes for the prevention of free trade and unity between your nations. ”

“ Even we are experiencing the inevitable consequences of this war in the way of reduced trade with the warring nations and their neighbors, in­creased transportation and insurance rates, depressed prices for export commodities, and other intangible effects which result from a stoppage or a drastic limi­tation of world trade. ”

“ Heavy products are carried to a few large cities, from whence they are exported, and the returns pursue the same route. If foreign importations are prohibited or diminished, and factories scattered sufficiently through the States to become markets for culinary goods, it must diminish or render unnecessary this coasting trade. But if this should not happen, and these factories should be so partially located, as to make some coasting trade necessary, yet the insufficiency of their manufactures to meet the demand, and the diminution of exchanges, must greatly impair it. ”

“ The truth is, that the theory of the Balance of Trade should be precisely reversed. The profits accruing to the nation from any foreign commerce should be calculated by the overplus of the importation above the exportation. ”

“ One of the greatest of our economic restrictions is our present tariff law, which raised rates of duties on imports to higher points than ever before, with the avowed purpose of restricting foreign competition. In other words we have set up a great barrier against foreign trade. We say specifically that we do not want to let our people buy freely the products of Europe’s work. Yet work is the chief thing that. impoverished Europe has to sell. ”

“ They are responsible for the dreadful error of having not only done nothing to extend and secure the currency from being exported or contracted, when they had added so enormously to the internal engagements of the kingdom, but done everything, by the establishment of a permanent system of free trade, and a permanently fettered currency, to secure its reappearance on occasion of every future recurrence of an indifferent harvest, or any continuance of a great importation. ”

“ Free-trade, therefore—for which we sacrificed our revenue, submitted to an income-tax, and ruined our West India colonies—has utterly failed to stimulate our exports, the end which it deliberately proposed.
The diminution of exports implies of course a corresponding diminution of labour. This is a great evil, but one which is beyond the remedy of the statesman. You cannot force exports—you cannot compel the foreign nations to take your goods. ”

“ We say nothing of the prospects of foreign importation which this fact opens to our agricultural interests,—that furnishes ample subject for future consideration; what we pray the public attention to, is the warning which it gives of the effects of free trade upon the monetary concerns of the nation, and above all on the credit of the trading and commercial classes. ”

“ Is it not where trade flourishes, and when the merchant can freely export the produce of the country to such parts of the world as will bring the richest return? When the merchant doth not purchase, your produce is low, finds a dull market—in vexation you call the trader a jocky, and curse the men whom you ought to pity. A desire of gain is common to mankind, and the general motive to business and industry. You cannot expect many purchases when trade is restricted, and your merchants are shut out from nine-tenths of the ports in the world. ”

“ These men know, from the lessons taught by their every-day transactions, that the existing miscalled system of Free Trade cannot be much longer persevered in without producing widespread ruin, and ultimate disaffection and anarchy. To enable us to increase our imports profitably, we must first have a corresponding increase of the ability of our own people to consume. To enable us to carry on a profitable trade in exports, we must first render the home producer of manufactures and other products less dependent than at present upon the foreign market ”

“ But do we, civilized beings, indulge in the absurd and barbarous notion that we must own the countries with which we wish to trade? Here are our official reports before us, telling us that of late years our export trade has grown enormously, not only of farm products, but of the products of our manufacturing industries ”

“ At the close of the war, however, when American ports were thrown open to the trade of Great Britain, the manufacturers of that country, with the deliberate purpose of crushing American industries out of existence, threw vast quantities of goods into the American markets, completely swamping native productions, and making it impossible for native manufacturers to compete with the importations. ”

“ I believe that, if only we could shake off the fetters of a narrow and pedantic theory, and freely reshape our own system of import duties on principles of obvious common sense, we should be able at one and the same time to promote trade within the Empire, to strengthen our hands in commercial negotiations with foreign countries, and to render tardy justice to our home industries.
The Free Trader goes on the principle of placing duties on a very few articles only, articles, generally, of universal consumption, and of making those duties very high ones. ”

“ The inquiry made, and accounts balancedbalanced on both sides, every hurtful article of importation should be cut off; and when this is done, if the consequence should prove a general stop to exportation, then is foreign trade decently interred, without any violent revolution; because the statesman is supposed to have proceeded gradually, and to have been all the while labouring to increase consumption at home, in proportion as the industrious have been forced to lie idle by the other operations. ”

“ Why should I mention the impressment of our seamen; depredation on every branch of our commerce, including the direct export trade, continued for years, and made under laws which professedly undertake to regulate our trade with other nations; negotiation resorted to time after time, till it is become hopeless; the restrictive system persisted in to avoid war, and in the vain expectation of returning justice? The evil still grows, and in each succeeding year swells in extent and pretension beyond the preceding. ”

“ Although then the rise in the price of most of our own commodities, would for a time check exportation generally, and might permanently prevent the exportation of a few commodities, it could not materially interfere with foreign trade, and would not place us under any comparative disadvantage as far as regarded competition in foreign markets. ”

“ The total failure of the free trade system to procure any, even the smallest return, coupled with the very serious injury it has inflicted on many of the staple branches of our industry, has now been completely demonstrated by experience, and is matter of universal notoriety. ”

“ Dissatisfaction among, and actual disaster to, Labor-givers as a class, have always followed the imposition of protectionist tariff-taxes in this country, as a matter of plain observation and record; have followed increasingly and more disastrously increased restrictions and prohibitions on profitable trade ”

“ It proves that a balance of trade in imported commodities, excites industry by increasing enjoyments, and by furnishing a surplus for re-exportation; and that it augments wonderfully both national wealth and strength. The abundance of commodities invited by a freedom of commerce, enables the re-exporting merchant to make up cargoes fitted for their destination, more speedily and cheaply, than in ports stripped of variety by commercial restrictions ”

“ What always happens when scarcity appears is that "the trade," indeed the whole world, insists upon the duty of increased production. As a result, wages and everything necessary in production advance. Costs sink to a second place. People having been frightened inevitably hoard, and finally when the joint effort of the world oversteps the market, there come the collapses called "panics," and thousands of business men are swept to ruin. ”

“ It was shown, however, in our analysis of the effects of international trade, as it had been often shown by former writers, that the importation of foreign commodities, in the common course of traffic, never takes place, except when it is, economically speaking, a national good, by causing the same amount of commodities to be obtained at a smaller cost of labour and capital to the country. To prohibit, therefore, this importation, or impose duties which prevent it, is to render the labour and capital of the country less efficient in production than they would otherwise be ”

“ They have discovered that there is such a thing as a nation increasing its imports enormously and beyond all example, and at the same time its exports declining in the same proportion, from the abstraction of the circulating medium requisite to carry on domestic fabrics. All this is what the Protectionists constantly predicted would follow the adoption of free trade principles; and they warned government in the most earnest manner two years ago, that no increase of exports, but the reverse, would follow the throwing open our ports to foreign grain ”

“ But let trade decay, let domestic industry fail, it will not be the foreign price which will then support the rate of our markets. What a multitude of circumstances contribute to the exportation of our superfluity! I can send from Charing-cross, any parcel whatever, to the distance of fifty miles, cheaper than from my own country habitation, where I can have a man, with a cart, for two shillings a day. ”

“ Perfect free trade consists in the absence of restrictions on both sides.... We cannot combat rival tariffs, directly or indirectly, without subjecting British industry to severe depressions in relation to foreign industry and foreign labour.... To lay suitable duties upon the production of the foreigner, who lays burthens upon yours, does not give the monopoly of the home market to the home producer, nor turn towards any particular employment more capital and labour than would naturally go there. ”

“ Perhaps the worst of the three fallacies, and in a sense the deepest-rooted, is the concept of export trade as of more value than import trade. This is often traced back to the time when governments deemed it desirable to accumulate in their countries treasures of gold and silver and to this end encouraged the sale of goods abroad and discouraged the payment for them in foreign goods. ”

“ Today, as never before, when peoples are seeking trade restoration and expansion, we must adjust our tariffs to the new order. We seek participation in the world's exchanges, because therein lies our way to widened influence and the triumphs of peace. We know full well we cannot sell where we do not buy, and we cannot sell successfully where we do not carry. ”

“ It will be drained of its effective cash, and deprived of its legitimate gains, and must languish far in the rear of what it would be, if enriched with the profits of an import trade. As an exporter, it will buy; as an importer, it will sell. All buying, and no selling, must impoverish cities as well as individuals. ”