FREE TRADE AND PROTECTION AN INQUIRY INTO THE CAUSES WHICH HAVE RETARDED THE GENERAL ADOPTION OF FREE TRADE SINCE ITS INTRODUCTION INTO ENGLAND. BY HENRY FAWCETT, M. P., FISLI. OW OF TRINITY HALL. ANIJ PKOFK3SOR OF IOLITICAI. ECO MOM V IX THK ISIVEKSITY OF CAMBRIDGE Jfonbon M A C M I L L A N A N D C O. 1878. The Kight of Translation and Kt production is R LONDON CLAV, SONS, AND TAYLOR. 1-RINTKH., HKKAI STKKKT HII. L. PREFACE. IN the autumn of last year I delivered at Cambridge a course of Lectures on Free Trade and Prot4 tion. One of the chief objects I had in view was c endeavour to explain the causes which have retarded the progress of Free Trade, and which have enabled Protectionists still to occupy so strong a position on the Continent, in America, and in many of our Colonies. I first thought of publishing these Lectures almost in the form in which they were delivered but I afterwards came to the conclusion that it would be better, for many reasons, to adopt a different arrangement, and I have consequently divided the book into six chapters. I have had occasion frequently to refer to Mr. Frederick Martins Statesmans Year Book, and I have also derived great assistance from the admirably-arranged Statistical Abstracts which are published annually by the Board of Trade. Whenever I have required additional information bearing on the subjects to which these Abstracts refer, it has always been most readily supplied to me by two vi PREFACE. gentlemen holding official positions at the Board of Trade Mr. Edwin J. Pearson, and Mr. Robert Giffen, the well-known economist and statist. I desire here to ac knowledge their kindness, and to offer them my sincere thanks. I also wish to say how muchI appreciate the assistance I have derived from my wife, who has revised the book as it was passing through the press, and from my Secretary, Mr. F. J. Dryhurst, who has not only acted as my amanuensis, but who has constantly aided me in various ways, and has prepared a summary of contents, which I believe will prove useful for purposes of reference. A ay 1878. SUMMARY OF CONTENTS. CHAPTER I. I NTRO1HJCTORY R EM ARKS. THE expectations, formerly entertained in this country, that the example of England in adopting a free-trade policy would be followed by other nations, have not been realized. Nothing is more likely to retard the cause of free trade than to under rate the strength of the opposition to it, and to ignore the arguments of its opponents. The adoption of free trade in England was hastened by the fact that protection was most strictly carried out with regard to agriculture, and conse quently its most obvious result was the rise in the price of food while, in other countries, protection is almost entirely confined to manufactured products. The abolition of pro tection may cause much suffering and loss to those employed in the industries jvhich have been brought into existence through protection. This loss corresponds to that which is caused to workmen who possess special manual skill in any handicraft, if the necessity for their labour is superseded by the invention of a machine. The motives which have prompted the opposition to the introduction of free trade in America and other countries are analogous to those which have led workmen employed in certain trades to resist the introduction of machinery. The adoption of protectionist principles in the Colonies has been encouraged bythe opinion expressed by Mr. Mill, that the imposition of a protective duty, with the view of promoting a new industry in a recently settled country, may be justified as a temporary expedient. Protection in the Colonies has also been promoted by the fact viii SUMMARY OF CONTENTS...