Under capitalist conditions, an industry either expands or wanes. A trade cannot remain stationary; stoppage of expansion is incipient ruin; the progress of mechanical and chemical invention, by constantly superseding human labor, and ever more rapidly increasing and concentrating capital, creates in every stagnant industry a glut both of workers and of capital, a glut which finds no vent anywhere, because the same process is taking place in all other industries. Thus the passage from a home to an export trade becomes a question of life and death for the industries concerned; but they are met by the established rights, the vested interests of others who as yet find protection either safer or more profitable than free trade. Then ensues a long and obstinate fight between free traders and protectionists; a fight where, on both sides, the leadership soon passes out of the hands of the people directly interested into those of professional politicians, the wire-pullers of the traditional political parties, whose interest is, not a settlement of the question, but its being kept open forever; and the result of an immense loss of time, energy, and money is a series of compromises, favoring now one, now the other side, and drifting slowly though not majestically in the direction of free trade—unless protection manages, in the meantime, to make itself utterly insupportable to the nation, which is just now likely to be the case in America.
There is, however, another kind of protection, the worst of all, and that is exhibited in Germany. Germany, too, began to feel, soon after 1815, the necessity of a quicker development of her manufactures. But the first condition of that was the creation of a home market by the removal of the innumerable customs lines and varieties of fiscal legislation formed by the small German states, in other words, the formation of a German
