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free trade。 The defect of the free…trade argument； and the
disappointment of free…trade policies； lies in overlooking the
fact that in the absence of an obstructive tariff substantially
the same amount of obstruction has to be accomplished by other
means； if business is to prosper。 And business prosperity is the
only manner of prosperity known or provided for among the
civilised nations。 It is the only manner of prosperity on which
the divine right of the nation gives it a claim。 A protective
tariff is only an alternative method of businesslike sabotage。 If
and so far as this method of keeping the supply of goods within
salutary bounds is not resorted to； other means of accomplishing
the same result must be employed。 For so long as investment
continues to control industry the welfare of the community is
bound up with the prosperity of its business； and business can
not be carried on without reasonably profitable prices； and
reasonably profitable prices can not be maintained without a
salutary limitation of the supply； which means slowing down
production to such a rate and volume as the traffic will bear。
A protective tariff is only one means of crippling the
country's industrial forces； for the good of business。 In its
absence all that matter will be taken care of by other means。 The
tariff may perhaps be a little the most flagrant method of
sabotage by which the vested interests are enabled to do a
reasonably profitable business； but there is nothing more than a
difference of degree； and not a large difference at that。 So long
as industry is managed with a view to a profitable price it is
quite indispensable to guard against an excessive rate and volume
of output。 In the absence of all businesslike sabotage the
productive capacity of the industrial system would very shortly
pass all reasonable bounds； prices would decline disastrously and
overhead charges would not be covered； fixed charges on
corporation securities and other credit instruments could not be
met； and the whole structure of business enterprise would
collapse； as it occasionally has done in times of
〃over…production。〃 There is no doing business without a fair
price； since the net price over cost is the motive of business。 A
protective tariff is； in effect； an auxiliary safeguard against
overproduction。 Incidentally the fact that its imposition does
not result in insufferable hardship serves also to show that the
new order of industry is highly productive； quite inordinately
productive in fact。 And it is a divine right of the nation to use
its discretion and offset this inordinate efficiency of its
common stock of knowledge by adroitly crippling its own commerce
and the commerce of its neighbors； for the benefit of those
vested interests that are domiciled within the national
frontiers。
But the divine right of national self…direction also covers
much else of the same description； besides the privilege of
setting up a tariff in restraint of trade。 There are many
channels of such discrimination； of divers kinds； but always it
will be found that these channels are channels of sabotage and
that they serve the advantage of some group of vested interests
which do business under the shelter of the national pretensions。
There are foreign investments and concessions to be procured and
safeguarded for the nation's business men by moral suasion backed
with warlike force； and the common man pays the cost； there is
discrimination to be exercised and perhaps subsidies and credits
to be accorded those of the nation's business men who derive a
profit from shipping； for the discomfiture of alien competitors；
and the common man pays the cost； there are colonies to be
procured and administered at the public expense for the private
gain of certain traders； concessionaires and administrative
office…holders； and the common man pays the cost。 Back of it all
is the nation's divine right to carry arms； to support a
competitive military and naval establishment； which has ceased；
under the new order； to have any other material use than to
enforce or defend the businesslike right of particular vested
interests to get something for nothing in some particular place
and in some particular way； and the common man pays the cost and
swells with pride。
Chapter 7
Live and Let Live
The Nation's inalienable right of self…direction and
self…help is of the same nature and derivation as the like
inalienable right of self…help vested in an irresponsible king by
the grace of God。 In both cases alike it is a divine right； in
the sense that it is irresponsible and will not bear scrutiny；
being an arbitrary right of self…help at the cost of any whom it
may concern。 There is the further parallel that in both cases
alike the ordinary exercise of these rights confers no material
benefit on the underlying community。 In practical effect the
exercise of such divine rights； whether by a sovereign monarch or
by the officials of a sovereign nation； works damage and
discomfort to one and another； within the national frontiers or
beyond them； with nothing better to show for it than some
relatively slight gain in prestige or in wealth for some
relatively small group of privileged persons or vested interests。
And the gain of those who profit by this means is always got at
the cost of the common man at home and abroad。 These inalienable
rights are an abundant source of grievances to be redressed at
the cost of the common man。
It has long been a stale commonplace that the quarrels of
competitive kings in pursuit of their divine rights have brought
nothing but damage and discomfort to the underlying peoples whose
material wealth and man power have been made use of for national
enterprise of this kind。 And it is no less evident； though
perhaps less notorious； that the pursuit of national advantages
by competitive nations by use of the same material wealth and man
power unavoidably brings nothing better than the same net output
of damage and discomfort to all the peoples concerned。 There is
of course the reservation that in the one case the kings and
their accomplices and pensioners have come in for some gain in
prestige and in perquisites； while in the case of the competitive
nations certain vested interests and certain groups of the kept
classes stand to gain something in the way of perquisites and
free income； but always and in the nature of the case the total
gain is less than the cost； and always the gain goes to the kept
classes and the cost falls on the common man。 So much is
notorious； particularly so far as it is a question of material
gain and loss。 So far as it is an immaterial question of jealousy
and prestige； the line of division runs between nations； but as
regards material gain and loss it is always a division between
the kept classes and the common man； and always the common man
has more to lose than the kept classes stand to gain。
The war is now concluded； provisionally； and peace is in
prospect for the immediate future； also provisionally。 As is true
betw