(P) That a Young Nation Needs Protection and will Suffer some Disadvantage in Free Exchange with an Old One.
134. The younger a nation is the more important trade is to it (cf. §§ 127 ff.)- The younger a nation is the more it wins by trade, for it offers food and raw materials which are objects of greatest necessity to old nations. The things England buys of us are far more essential to her than what she buys of France or Germany. The strong party in an exchange is not the rich party, or the old party, but the one who is favored by supply and demand — the one who brings to the exchange the thing which is more rare and more eagerly wanted.[1] If a poor woman went into Stewart's store to buy a yard of calico, she did not have to pay more because Stewart was rich. She paid less because he used his capital to serve her better and at less price than anybody else could. England takes 60 per cent of all our exports. We sell, first, wheat and provisions, prime articles of food; second, cotton, the most important raw material now used by mankind; third, tobacco, the most universal luxury and the one for which there is the intensest demand; fourth, petroleum, the lighting material in most universal use. These are things which are rare and of high demand. We are, therefore, strong in the market. Protection only robs us of part of our advantage (§ 116).
(Q) That we Need Protection to Get Ready for War.
135. We have no army, or navy, or fortifications worth mentioning. We are wasting more by protective taxes in a year than would be necessary to build a first-class navy
- ↑ See a fallacy under this point: Cunningham, "Growth of English Industry," 410 note.
