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to both contracting nations； but not to the ruin of the one； and to
the immense advantage of the other。 If； however； we investigate the
cause of this disproportionate effect； we find that Portugal and
France； in consequence of those conventions； abandoned in favour of
England the progress they had already made in manufacturing
industry； as well as that which they could expect to make in it in
the future； with the expectation of increasing by that means their
exportation of natural products to England； that； accordingly； both
those nations have declined； in consequence of the treaties thus
concluded； from a higher to a lower standpoint of industrial
development。 From this； however； it merely follows that a nation
acts foolishly if it sacrifices its manufacturing power to foreign
competition by commercial treaties； and thereby binds itself to
remain for all future time dependent on the low standpoint of
merely agricultural industry； but it does not in the least follow
from this； that those treaties are also detrimental and
objectionable whereby the reciprocal exchange of agricultural
products and raw materials； or the reciprocal exchange of
manufactured products； is promoted。
We have previously explained that free trade in agricultural
products and raw materials is useful to all nations at all stages
of their industrial development； from this it follows that every
commercial treaty which mitigates or removes prohibitions and
restrictions on freedom of trade in such articles must have a
beneficial effect on both contracting nations； as e。g。 a convention
between France and England whereby the mutual exchange of wines and
brandies for pig…iron and coal； or a treaty between France and
Germany whereby the mutual exchange of wine； oil； and dried fruit；
for corn； wool； and cattle； were promoted。
According to our former deductions； protection is only
beneficial to the prosperity of the nation so far as it corresponds
with the degree of the nation's industrial development。 Every
exaggeration of protection is detrimental； nations can only obtain
a perfect manufacturing power by degrees。 On that account also； two
nations which stand at different stages of industrial cultivation；
can with mutual benefit make reciprocal concessions by treaty in
respect to the exchange of their various manufacturing products。
The less advanced nation can； while it is not yet able to produce
for itself with profit finer manufactured goods； such as fine
cotton and silk fabrics； nevertheless supply the further advanced
nation with a portion of its requirements of coarser manufactured
goods。
Such treaties might be still more allowable and beneficial
between nations which stand at about the same degree of industrial
development； between which； therefore； competition is not
overwhelming； destructive； or repressive； nor tending to give a
monopoly of everything to one side； but merely acts； as competition
in the inland trade does； as an incentive to mutual emulation；
perfection； and cheapening of production。 This is the case with
most of the Continental nations。 France； Austria； and the German
Zollverein might； for instance； anticipate only very prosperous
effects from moderately low reciprocal protective duties。 Also；
between these countries and Russia mutual concessions could be made
to the advantage of all sides。 What they all have to fear at this
time is solely the preponderating competition of England。
Thus it appears also from this point of view； that the
supremacy of that island in manufactures； in trade； in navigation；
and in her colonial empire； constitutes the greatest existing
impediment to all nations drawing nearer to one another； although
it must be at the same time admitted that England； in striving for
this supremacy； has immeasurably increased； and is still daily
increasing； the productive power of the entire human race。
End
