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morality and religious character； her industry and domestic
economy； by her perseverance and steadfastness in business
occupations； as also by her spirit of invention； by the number and
vigour of her population； by the extent and nature of her
territory； and especially by her highly advanced agriculture； and
her physical； social； and mental resources。
If any nation whatever has a right to anticipate rich results
from a protective system adapted to her circumstances； for the
progress of her home manufactures； for the increase of her foreign
trade and her navigation； for the perfecting of her internal means
of transport； for the prosperity of her agriculture； as also for
the maintenance of her independence and the increase of her power
abroad； it is Germany。
Yes； we venture to assert； that on the development of the
German protective system depend the existence； the independence and
the future of the German nationality。 Only in the soil of general
prosperity does the national spirit strike its roots； produce fine
blossoms and rich fruits； only from the unity of material interests
does mental power arise； and only from both of these national
power。 But of what value are all our endeavours； whether we are
rulers or subjects； nobles or simple citizens； learned men；
soldiers； or civilians； manufacturers； agriculturists； or
merchants； without nationality and without guarantees for the
continuance of our nationality？
Meanwhile； however； the German protective system only
accomplishes its object in a very imperfect manner； so long as
Germany does not spin for herself the cotton and linen yarn which
she requires； so long as she does not directly import from tropical
countries the colonial produce which she requires； and pay for it
with goods of her own manufacture； so long as she does not carry on
this trade with her own ships； so long as she has no means of
protecting her own flag； so long as she possesses no perfect system
of transport by river； canal； or railway； so long as the German
Zollverein does not include all German maritime territories and
also Holland and belgium。 We have treated these subjects
circumstantially in various places in this book； and it is only
necessary for us here to recapitulate what we have already thus
treated。
If we import raw cotton from Egypt； Brazil； and North America；
we in that case pay for it in our own manufactured goods； if； on
the other hand； we import cotton yarn from England； we have to pay
the value of it in raw materials and articles of food which we
could more advantageously work up or consume ourselves； or else we
must pay for it in specie which we have acquired elsewhere； and
with which we could more advantageously purchase foreign raw
materials to work up for ourselves； or colonial produce for our own
consumption。
In the same way the introduction of spinning linen yarn by
machinery offers us the means not only of increasing our home
consumption of linen； and of perfecting our agriculture； but also
of enormously increasing our trade with tropical countries。
For the two above…named branches of industry； as well as for
the manufacture of woollens； we are as favourably circumstanced as
any other nation； by an amount of water power hitherto not
utilised； by cheap necessaries of life； and by low wages。 What we
lack is simply and solely a guarantee for our capitalists and
artisans by which they may be protected against loss of capital and
want of work。 A moderate protective duty of about twenty…five per
cent during the next five years； which could be maintained for a
few years at that rate and then be lowered to fifteen to twenty per
cent； ought completely to accomplish this object。 Every argument
which is adduced by the supporters of the theory of values against
such a measure； has been refuted by us。 On the other hand； we may
add a further argument in favour of that measure； that these great
branches of industry especially offer us the means for establishing
extensive machine manufactories and for the development of a race
of competent technical instructors and practical foremen。
In the trade in colonial produce Germany； as France and England
have done； has to follow the principle that in respect to the
purchase of the colonial produce which we require； we should give
a preference to those tropical countries which purchase
manufactured goods from us； or； in short； that we should buy from
those who buy from us。 That is the case in reference to our trade
with the West Indies and to North and South America。
But it is not yet the case in reference to our trade with
Holland； which country supplies us with enormous quantities of her
colonial produce； but only takes in return disproportionately small
quantities of our manufactured goods。
At the same time Holland is naturally directed to the market of
Germany for the disposal of the greater part of her colonial
produce； inasmuch as England and France derive their supplies of
such produce for the most part from their own colonies and from
subject countries （where they exclusively possess the market for
manufactured goods）； and hence they only import small quantities of
Dutch colonial produce。
Holland has no important manufacturing industry of her own；
but； on the other hand； has a great productive industry in her
colonies； which has recently greatly increased and may yet be
immeasurably further increased。 But Holland desires of Germany that
which is unfair； and acts contrary to her own interests if rightly
understood； inasmuch as she desires to dispose of the greater part
of her colonial produce to Germany； while she desires to supply her
requirements of manufactured goods from any quarter she likes best。
This is； for Holland； an only apparently beneficial and a
short…sighted policy； for if Holland would give preferential
advantages to German manufactured goods both in the mother country
and in her colonies； the demand in Germany for Dutch colonial
produce would increase in the same proportion in which the sale of
German manufactured goods to Holland and her colonies increased；
or； in other words； Germany would be able to purchase so much the
more colonial produce in proportion as she sold more manufactured
goods to Holland； Holland would be able to dispose of so much more
colonial produce to Germany as she purchased from Germany
manufactured goods。 This reciprocal exchange operation is； at
present； rendered impracticable by Holland if she sells her
colonial produce to Germany while she purch