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rights of the crown。 It should not be extremely difficult to
understand why they have stood over； or why they still command
the dutiful approval of the common man。 It is a case of aimless
survival； on the whole； due partly to the inertia of habit and
tradition； partly to the solicitous advocacy of these assumed
national interests by those classes the trading and
office…holding classes who stand to gain something by the
pursuit of them at the cost of the rest。 By tenacious tradition
out of the barbarian past these peoples have continued to be
rival nations living in a state of habitual enmity and distrust；
for no better reason than that they have not taken thought and
changed their mind。
After some slackening of national animosities and some
disposition to neglect national pretensions during the earlier
decades of the great era of Liberalism； the democratic nations
have been gradually shifting back to a more truculent attitude
and a more crafty and more rapacious management in all
international relations。 This aggressive chauvinistic policy has
been called Imperialism。 The movement has visibly kept pace； more
or less closely； with the increasing range and volume of commerce
and foreign investments during the same period。 And to further
this business enterprise there has been an ever increasing resort
to military power。 It is reasonably believed that traders and
investors in foreign parts are able to derive a larger profit
from their business when they have the backing of a powerful and
aggressive national government； particularly in their dealings
with helpless and backward peoples； and more particularly if
their own national government is sufficiently unscrupulous and
overbearing； which may confidently be counted on so long as
these governments continue to be administered by the gentlemanly
delegates of the vested interests and the kept classes。
As regards the intrinsic value which is popularly attached to
the imponderable national possessions； in the way of honor and
prestige； there is little to be said； beyond the stale reflection
that there is no disputing about tastes。 It all is at least a
profitable illusion； for the use of those who are in a position
to profit by it。 Such as the crown and the officeholders。 But the
people of the civilised nations believe themselves to have also a
material interest of some sort in enlarging the national
dominions and in extending the foreign trade of their business
men and safe…guarding the foreign claims of their vested
interests。 And the Americans； like many others； harbor the
singular delusion that they can derive a collective benefit from
obstructing the country's trade at the national frontiers by
means of a tariff barrier； and so defeating their own industry by
that much。 It is a survival out of the barbarian past； out of the
time when the dynastic politicians were occupied with isolating
the nation and making it self…sufficient； as an engine of warlike
enterprise for the pursuit of dynastic ambitions and the greater
discomfort of their neighbors。 In an increasing degree as the new
order of industry has come into bearing； any such policy of
industrial isolation and self…sufficiency has become more
difficult and more injurious； for a free range and unhindered
specialisation is of the essence of the new industrial order。
The experience of the war has shown conclusively that no one
country can hereafter supply its own needs either in raw
materials or in finished goods。 Both the winning and the losing
side have shown that。 The new industrial order necessarily
overlaps the national frontiers； even in the case of a nation
possessed of so extensive and varied natural resources as
America。 So that in spite of all the singularly ingenious
obstruction of the American tariff the Americans still continue
to draw on foreign sources for most or all of their tea； coffee；
sugar； tropical and semi…tropical fruits； vegetable oils；
vegetable gums and pigments； cordage fibers； silks； rubber； and a
bewildering multitude of minor articles of daily use。 Even so
peculiarly American an industry as chewing…gum is wholly
dependent on foreign raw material； and quite unavoidably so。 The
most that can be accomplished by any tariff under these
circumstances is more or less obstruction。 Isolation and
self…sufficiency are already far out of the question。
But there are certain vested interests which find their
profit in maintaining a tariff barrier as a means of keeping the
price up and keeping the supply down； and the common man still
faithfully believes that the profits which these vested interests
derive in this way from increasing the cost of his livelihood and
decreasing the net productivity of his industry will benefit him
in some mysterious way。 He is persuaded that high prices and a
scant supply of goods at a high labor cost is a desirable state
of things。 This is incredible； but there is no denying the fact。
He knows； of course； that the profits of business go to the
business men； the vested interests； and to no one else； but he is
still beset with the picturesque hallucination that any unearned
income which goes to those vested interests whose central office
is in New Jersey is paid to himself in some underhand way； while
the gains of those vested interests that are domiciled in Canada
are obviously a grievous net loss to him。 The tariff moves in a
mysterious way； its wonders to perform。
To all adult persons of sound mind； and not unduly clouded
with the superstitions of the price system； it is an obvious
matter of fact that any protective tariff is an obstruction to
industry and a means of impoverishment； just so far as it is
effective。 The arguments to the contrary invariably turn out to
be pettifogger's special pleading for some vested interest or for
a warlike national policy； and these arguments convince only
those persons who are able to believe that a part is greater than
the whole。 It also lies in the nature of protective tariffs that
they always cost the nation disproportionately much more than
they are worth to those vested interests which profit by them。 In
this respect they are like any other method of businesslike
sabotage。 Their aim； and presumably their effect； is to keep the
price up by keeping the supply down； to hinder competitors and
retard production。 As in other instances of businesslike
sabotage； therefore； the net margin of advantage to those who
profit by it is greatly less than what it costs the community。
Yet it is to be noted that the Americans have prospered； on
the whole； under protective tariffs which have been as
ingeniously and comprehensively foolish as could well be
contrived。 There is even some color of reason in the contentions
of the protectionists that the more reasonable tariffs have
commonly been more depressing to industry than the most imbecile
of them。 All of which should be disquieting to the advocates of
free trade。 The defect of the free…trade argument； and the
disappointment of free…trade policies； lies in overlooki