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Economic Sophisms

Chapter 50: XIV. SOMETHING ELSE.
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About This Book

This collection of essays dismantles common economic fallacies associated with protectionism and state intervention, arguing through logical analysis and examples that wealth arises from increased productive results rather than amplified toil. It contrasts doctrines that valorize artificial scarcity and monopolies with those that favor machinery, competition, exchange, and the reduction of labor needed to produce goods. Topics include tariffs, balance of trade, taxes, duties, reciprocity, effects of regulation on transport, and moral critiques of spoliation and privilege. The tone mixes polemic, exposition, and satire to reveal unintended consequences of restrictive policies and to advocate freer exchange and clearer economic reasoning.





XIII. PROTECTION; OR, THE THREE CITY MAGISTRATES. Demonstration in Four

Tableaux.

Scene I.—House of Master Peter.—Window looking out on a fine park.—Three gentlemen seated near a good fire.

Peter: Bravo! Nothing like a good fire after a good dinner. It does feel so comfortable. But, alas! how many honest folks, like the Boi d'Yvetot,

"Soufflent, faute de bois,
Dans leurs doigts."

Miserable creatures! A charitable thought has just come into my head. You see these fine trees; I am about to fell them, and distribute the timber among the poor.

Paul and John: What! gratis?

Peter: Not exactly. My good works would soon have an end were I to dissipate my fortune. I estimate my park as worth £1000. By cutting down the trees I shall pocket a good sum.

Paul: Wrong. Your wood as it stands is worth more than that of the neighbouring forests, for it renders you services which they cannot render. When cut down it will be only good for firewood, like any other, and will not bring a penny more the load.

Peter: Oh! oh! Mr Theorist, you forget that I am a practical man. My reputation as a speculator is sufficiently well established, I believe, to prevent me from being taken for a noodle. Do you imagine I am going to amuse myself by selling my timber at the price of float-wood?

Paul: It would seem so.

Peter: Simpleton! And what if I can hinder float-wood from being brought into Paris?

Paul: That alters the case. But how can you manage it?

Peter: Here is the whole secret. You know that float-wood, on entering the city, pays 5d. the load. To-morrow, I induce the commune to raise the duty to £4, £8, £12,—in short, sufficiently high to prevent the entry of a single log. Now, do you follow me? If the good people are not to die of cold, they have no alternative but to come to my woodyard. They will bid against each other for my wood, and I will sell it for a high price; and this act of charity, successfully carried out, will put me in a situation to do other acts of charity.

Paul: A fine invention, truly! It suggests to me another of the same kind.

John: And what is that? Is philanthropy to be again brought into play?

Paul: How do you like this Normandy butter?

John: Excellent.

Paul: Hitherto I have thought it passable. But do you not find that it takes you by the throat? I could make better butter in Paris. I shall have four or five hundred cows, and distribute milk, butter, and cheese among the poor.

Peter and John: What! in charity?

Paul: Bah! let us put charity always in the foreground. It is so fine a figure that its very mask is a good passport. I shall give my butter to the people, and they will give me their money. Is that what is called selling?

John: No; not according to the Bourgeois Gentilhomme. But, call it what you please, you will ruin yourself. How can Paris ever compete with Normandy in dairy produce?

Paul: I shall be able to save the cost of carriage.

John: Be it so. Still, while paying that cost, the Normans can beat the Parisians.

Paul: To give a man something at a lower price—is that what you call beating him?

John: It is the usual phrase; and you will always find yourself beaten.

Paul: Yes; as Don Quixote was beaten. The blows will fall upon Sancho. John, my friend, you forget the octroi.

John: The octroi! What has that to do with your butter?

Paul: To-morrow, I shall demand protection, and induce the commune to prohibit butter being brought into Paris from Normandy and Brittany. The people must then either dispense with it, or purchase mine, and at my own price, too.

John: Upon my honour, gentlemen, your philanthropy has quite made a convert of me.

"On apprend à hurler, dit l'autre, avec les loups."

My mind is made up. I shall not be thought unworthy of my colleagues. Peter, this sparkling fire has inflamed your soul. Paul, this butter has lubricated the springs of your intelligence. I, too, feel stimulated by this piece of powdered pork; and tomorrow I shall vote, and cause to be voted, the exclusion of swine, dead and alive. That done, I shall construct superb sheds in the heart of Paris,

"Pour l'animal immonde aux Hebreux defendu."

I shall become a pig-driver and pork-butcher. Let us see how the good people of Paris can avoid coming to provide themselves at my shop.

Peter: Softly, my good friends; if you enhance the price of butter and salt meat to such an extent, you cut down beforehand the profit I expect from my wood.

Paul: And my speculation will be no longer so wondrously profitable, if I am overcharged for my firewood and bacon.

John: And I, what shall I gain by overcharging you for my sausages, if you overcharge me for my faggots and bread and butter?

Peter: Very well, don't let us quarrel Let us rather put our heads together and make reciprocal concessions. Moreover, it is not good to consult one's self-interest exclusively—we must exercise humanity, and see that the people do not want fuel.

Paul: Very right; and it is proper that the people should have butter to their bread.

John: Undoubtedly; and a bit of bacon for the pot.

All: Three cheers for charity; three cheers for philanthropy; and to-morrow we take the octroi by assault.

Peter: Ah! I forgot. One word more; it is essential. My good friends, in this age of egotism the world is distrustful, and the purest intentions are often misunderstood. Paul, you take the part of pleading for the wood; John will do the same for the butter; and I shall devote myself to the home-bred pig. It is necessary to prevent malignant suspicions.

Paul and John (leaving): Upon my word, that is a clever fellow.

Scene II.—Council Chamber.

Paul: Mes chers collègues, Every day there are brought to Paris great masses of firewood, which drain away large sums of money. At this rate, we shall all be ruined in three years, and what will become of the poorer classes? (Cheers) We must prohibit foreign timber. I don't speak for myself, for all the wood I possess would not make a tooth-pick. In what I mean to say, then, I am entirely free from any personal interest or bias. (Hear, hear) But here is my friend Peter, who possesses a park, and he will guarantee an adequate supply of fuel to our fellow-citizens, who will no longer be dependent on the charcoal-burners of the Yonne. Have you ever turned your attention to the risk which we run of dying of cold, if the proprietors of forests abroad should take it into their heads to send no more firewood to Paris? Let us put a prohibition, then, on bringing in wood. By this means we shall put a stop to the draining away of our money, create an independent interest charged with supplying the city with firewood, and open up to workmen a new source of employment and remuneration. (Cheers)

John: I support the proposal of my honourable friend, the preceding speaker, which is at once so philanthropic, and, as he himself has explained, so entirely disinterested. It is indeed high time that we should put an end to this insolent laissez passer, which has brought immoderate competition into our markets, and to such an extent that there is no province which possesses any special facility for providing us with a product, be it what it may, which does not immediately inundate us, undersell us, and bring ruin on the Parisian workman. It is the duty of Government to equalize the conditions of production by duties wisely adapted to each case, so as not to allow to enter from without anything which is not dearer than in Paris, and so relieve us from an unequal struggle. How, for example, can we possibly produce milk and butter in Paris, with Brittany and Normandy at our door? Remember, gentlemen, that the agriculturists of Brittany have cheaper land, a more abundant supply of hay, and manual labour on more advantageous terms.

Does not common sense tell us that we must equalize the conditions by a protective octroi tariff? I demand that the duty on milk and butter should be raised by 1000 per cent., and still higher if necessary. The workman's breakfast will cost a little more, but see to what extent his wages will be raised! We shall see rising around us cow-houses, dairies, and barrel chums, and the foundations laid of new sources of industry. Not that I have any interest in this proposition. I am not a cowfeeder, nor have I any wish to be so. The sole motive which actuates me is a wish to be useful to the working classes. (Applause.)

Peter: I am delighted to see in this assembly statesmen so pure, so enlightened, and so devoted to the best interests of the people. (Cheers) I admire their disinterestedness, and I cannot do better than imitate the noble example which has been set me. I give their motions my support, and I shall only add another, for prohibiting the entry into Paris of the pigs of Poitou. I have no desire, I assure you, to become a pig-driver or a pork-butcher. In that case I should have made it a matter of conscience to be silent. But is it not shameful, gentlemen, that we should be the tributaries of the peasants of Poitou, who have the audacity to come into our own market and take possession of a branch of industry which we ourselves have no means of carrying on? and who, after having inundated us with their hams and sausages, take perhaps nothing from us in return? At all events, who will tell us that the balance of trade is not in their favour, and that we are not obliged to pay them a tribute in hard cash? Is it not evident that if the industry of Poitou were transplanted to Paris, it would open up a steady demand for Parisian labour? And then, gentlemen, is it not very possible, as M. Lestiboudois has so well remarked, that we may be buying the salt pork of Poitou, not with our incomes, but with our capital? Where will that land us? Let us not suffer, then, that rivals who are at once avaricious, greedy, and perfidious, should come here to undersell us, and put it out of our power to provide ourselves with the same commodities. Gentlemen, Paris has reposed in you her confidence; it is for you to justify that confidence. The people are without employment; it is for you to create employment for them; and if salt pork shall cost them a somewhat higher price, we have, at least, the consciousness of having sacrificed our own interests to those of the masses, as every good magistrate ought to do. (Loud and long-continued cheers.)

A Voice: I have heard much talk of the poor; but under pretext of affording them employment, you begin by depriving them of what is more valuable than employment itself, namely, butter, firewood, and meat.

Peter, Paul, and John: Vote, vote! Down with Utopian dreamers, theorists, generalizers! Vote, vote! (The three motions are carried.)

Scene III.—Twenty years afterwards.

Son: Father, make up your mind; we must leave Paris. Nobody can any longer live there—no work, and everything dear.

Father: You don't know, my son, how much it costs one to leave the place where he was born.

Son: The worst thing of all is to perish from want.

Father: Go you, then, and search for a more hospitable country. For myself, I will not leave the place where are the graves of your mother, and of your brothers and sisters. I long to obtain with them that repose which has been denied me in this city of desolation.

Son: Courage, father; we shall find employment somewhere else—in Poitou, or Normandy, or Brittany. It is said that all the manufactures of Paris are being removed by degrees to these distant provinces.

Father: And naturally so. Not being able to sell firewood and provisions, the people of these provinces have ceased to produce them beyond what their own wants call for. The time and capital at their disposal are devoted to making for themselves those articles with which we were in use to furnish them.

Son: Just as at Paris they have given up the manufacture of elegant dress and furniture, and betaken themselves to the planting of trees, and the rearing of pigs and cows. Although still young, I have lived to see vast warehouses, sumptuous quarters of the city, and quays once teeming with life and animation on the banks of the Seine, turned into meadows and copses.

Father: While towns are spread over the provinces, Paris is turned into green fields. What a deplorable revolution! And this terrible calamity has been brought upon us by three magistrates, backed by public ignorance.

Son: Pray relate to me the history of this change.

Father: It is short and simple. Under pretext of planting in Paris three new branches of industry, and by this means giving employment to the working classes, these men got the commune to prohibit the entry into Paris of firewood, butter, and meat. They claimed for themselves the right of providing for their fellow-citizens. These commodities rose at first to exorbitant prices. No one earned enough to procure them, and the limited number of those who could procure them spent all their income on them, and had no longer the means of buying anything else. A check was thus given to all other branches of industry and production, and all the more quickly that the provinces no longer afforded a market. Poverty, death, and emigration then began to depopulate Paris.

Son: And when is this to stop?

Father: When Paris has become a forest and a prairie.

Son: The three magistrates must have made a large fortune?

Father: At first they realized enormous profits, but at length they fell into the common poverty.

Son: How did that happen?

Father: Look at that ruin. That was a magnificent man-sion-house surrounded with a beautiful park. If Paris had continued to progress, Master Peter would have realized more interest than his entire capital now amounts to.

Son: How can that be, seeing he has got rid of competition?

Father: Competition in selling has disappeared, but competition in buying has disappeared also, and will continue every day to disappear more and more until Paris becomes a bare field, and until the copses of Master Peter have no more value than the copses of an equal extent of land in the Forest of Bondy. It is thus that monopoly, like every other system of injustice, carries in itself its own punishment.

Son: That appears to me not very clear, but the decadence of Paris is an incontestable fact. Is there no means, then, of counteracting this singular measure that Peter and his colleagues got adopted twenty years ago?

Father: I am going to tell you a secret. I remain in Paris on purpose. I shall call in the people to my assistance. It rests with them to replace the octroi on its ancient basis, and get quit of that fatal principle which was engrafted on it, and which still vegetates there like a parasitical fungus.

Son: You must succeed in this at once.

Father: On the contrary, the work will be difficult and laborious. Peter, Paul, and John understand one another marvellously. They will do anything rather than allow firewood, butter, and butchers' meat to enter Paris. They have on their side the people, who see clearly the employment which these three protected branches of industry afford. They know well to what extent the cowfeeders and wood-merchants give employment to labour; but they have by no means the same exact idea of the labour which would be developed in the open air of liberty.

Son: If that is all, you will soon enlighten them.

Father: At your age, my son, no doubts arise. If I write, the people will not read; for, to support their miserable existence, they have not much time at their disposal. If I speak, the magistrates will shut my mouth. The people, therefore, will long remain under their fatal mistake. Political parties, whose hopes are founded on popular passions, will set themselves, not to dissipate their prejudices, but to make merchandise of them. I shall have to combat at one and the same time the great men of the day, the people, and their leaders. In truth, I see a frightful storm ready to burst over the head of the bold man who shall venture to protest against an iniquity so deeply rooted in this country.

Son: You will have truth and justice on your side.

Father: And they will have force and calumny on theirs. Were I but young again! but age and suffering have exhausted my strength.

Son: Very well, father; what strength remains to you, devote to the service of the country. Begin this work of enfranchisement, and leave to me the care of finishing it.

Scene IV.—The Agitation.

Jacques Bonhomme: Parisians, let us insist upon a reform of the octroi duties; let us demand that they be instantly brought down to the former rate. Let every citizen be free to buy his firewood, butter, and butchers' meat where he sees fit.

The People: Vive, vive la Liberte!

Peter: Parisians, don't allow yourselves to be seduced by that word, liberty. What good can result from liberty to purchase if you want the means—in other words, if you are out of employment? Can Paris produce firewood as cheaply as the Forest of Bondy? meat as cheaply as Poitou? butter as cheaply as Normandy? If you open your gates freely to these rival products, what will become of the cowfeeders, woodcutters, and pork-butchers? They cannot dispense with protection.

The People: Vive, vive la Protection!

Jacques Bonhomme: Protection! but who protects you workmen? Do you not compete with one another? Let the wood-merchants, then, be subject to competition in their turn. They ought not to have right by law to raise the price of firewood, unless the rate of wages is also raised by law. Are you no longer in love with equality?

The People: Vive, vive l'Egalite!

Peter: Don't listen to these agitators. We have, it is true, raised the price of firewood, butchers' meat, and butter; but we have done so for the express purpose of being enabled to give good wages to the workmen. We are actuated by motives of charity.

The People: Vive, vive la Charite!

Jacques Bonhomme. Cause the rate of wages to be raised by the octroi, if you can, or cease by the same means to raise the prices of commodities. We Parisians ask for no charity—we demand justice.

The People: Vive, vive la Justice!

Peter: It is precisely the high price of commodities which will lead, par ricochet, to a rise of wages.

The People: Vive, vive la Cherte!

Jacques Bonhomme: If butter is dear, it is not because you pay high wages to the workmen, it is not even because you make exorbitant profits; it is solely because Paris is ill-adapted for that branch of industry; it is because you wish to make in the town what should be made in the country, and in the country what should be made in the town. The people have not more employment—only they have employment of a different kind. They have no higher wages; while they can no longer buy commodities as cheaply as formerly.

The People: Vive, vive le Bon Marche!

Peter: This man seduces you with fine words. Let us place the question before you in all its simplicity. Is it, or is it not, true, that if we admit firewood, meat, and butter freely or at a lower duty, our markets will be inundated? Believe me there is no other means of preserving ourselves from this new species of invasion but to keep the door shut, and so maintain the prices of commodities by rendering them artificially rare.

Some Voices in the Crowd: Vive, vive la Rarete!

Jacques Bonhomme: Let us bring the question to the simple test of truth. You cannot divide among the people of Paris commodities which are not in Paris. If there be less meat, less firewood, less butter, the share falling to each will be smaller. Now there must be less if we prohibit what should be allowed to enter the city. Parisians, abundance for each of you can be secured only by general abundance.

The People: Vive, vive l'Abondance!

Peter: It is in vain that this man tries to persuade you that it is your interest to be subjected to unbridled competition.

The People: A bas, à bas la Concurrence!

Jacques Bonhomme: It is in vain that this man tries to make you fall in love with restriction.

The People: A bas, à bas la Restriction!

Peter: I declare, for my own part, if you deprive the poor cowfeeders and pig-drivers of their daily bread, I can no longer be answerable for public order. Workmen, distrust that man. He is the agent of perfidious Normandy, and derives his inspiration from the provinces. He is a traitor; down with him! (The people preserve silence.)

Jacques Bonhomme: Parisians, what I have told you to-day,

I told you twenty years ago, when Peter set himself to work the octroi for his own profit and to your detriment. I am not, then, the agent of Normandy. Hang me up, if you will, but that will not make oppression anything else than oppression. Friends, it is not Jacques or Peter that you must put an end to, but liberty if you fear it, or restriction if it does you harm.

The People: Hang nobody, and set everybody free.








XIV. SOMETHING ELSE.

What is restriction?"

"It is partial prohibition."

"What is prohibition?"

"Absolute restriction."

"So that what holds true of the one, holds true of the other?"

"Yes; the difference is only one of degree. There is between them the same relation as there is between a circle and the arc of a circle."

"Then, if prohibition is bad, restriction cannot be good?"

"No more than the arc can be correct if the circle is irregular."

"What is the name which is common to restriction and prohibition?"

"Protection."

"What is the definitive effect of protection?"

"To exact from men a greater amount of labour for the same result."

"Why are men attached to the system of protection?"

"Because as liberty enables us to obtain the same result with less labour, this apparent diminution of employment frightens them."

"Why do you say apparent?"

"Because all labour saved can be applied to something else."

"To what?"

"That I cannot specify, nor is there any need to specify it."

"Why?"

"Because if the sum of satisfactions which the country at present enjoys could be obtained with one-tenth less labour, no one can enumerate the new enjoyments which men would desire to obtain from the labour left disposable. One man would desire to be better clothed, another better fed, another better educated, another better amused."

"Explain to me the mechanism and the effects of protection."

"That is not an easy matter. Before entering on consideration of the more complicated cases, we must study it in a very simple one."

"Take as simple a case as you choose."

"You remember how Robinson Crusoe managed to make a plank when he had no saw."

"Yes; he felled a tree, and then, cutting the trunk right and left with his hatchet, he reduced it to the thickness of a board."

"And that cost him much labour?"

"Fifteen whole days' work."

"And what did he live on during that time?"

"He had provisions."

"What happened to the hatchet?"

"It was blunted by the work."

"Yes; but you perhaps do not know this: that at the moment when Robinson was beginning the work he perceived a plank thrown by the tide upon the seashore."

"Happy accident! he of course ran to appropriate it?"

"That was his first impulse; but he stopped short, and began to reason thus with himself:—

"'If I appropriate this plank, it will cost me only the trouble of carrying it, and the time needed to descend and remount the cliff.

"'But if I form a plank with my hatchet, first of all, it will procure me fifteen days' employment; then my hatchet will get blunt, which will furnish me with the additional employment of sharpening it; then I shall consume my stock of provisions, which will be a third source of employment in replacing them. Now, labour is wealth. It is clear that I should ruin myself by appropriating the shipwrecked plank. I must protect my personal labour; and, now that I think of it, I can even increase that labour by throwing back the other plank into the sea.'"

"But this reasoning was absurd."

"No doubt. It is nevertheless the reasoning of every nation which protects itself by prohibition. It throws back the plank which is offered it in exchange for a small amount of labour in order to exert a greater amount of labour. It is not in the labour of the Customhouse officials that it discovers a gain. That gain is represented by the pains which Robinson takes to render back to the waves the gift which they had offered him. Consider the nation as a collective being, and you will not find between its reasoning and that of Robinson an atom of difference."

"Did Robinson not see that he could devote the time saved to something else?"

"What else?"

"As long as a man has wants to satisfy and time at his disposal, there is always something to be done. I am not bound to specify the kind of labour he would in such a case undertake."

"I see clearly what labour he could have escaped."

"And I maintain that Robinson, with incredible blindness, confounded the labour with its result, the end with the means, and I am going to prove to you..."

"There is no need. Here we have the system of restriction or prohibition in its simplest form. If it appear to you absurd when so put, it is because the two capacities of producer and consumer are in this case mixed up in the same individual."

"Let us pass on, therefore, to a more complicated example."

"With all my heart. Some time afterwards, Robinson having met with Friday, they united their labour in a common work. In the morning they hunted for six hours, and brought home four baskets of game. In the evening they worked in the garden for six hours, and obtained four baskets of vegetables.

"One day a canoe touched at the island. A good-looking foreigner landed, and was admitted to the table of our two recluses. He tasted and commended very much the produce of the garden, and before taking leave of his entertainers, spoke as follows:—

"'Generous islanders, I inhabit a country where game is much more plentiful than here, but where horticulture is quite unknown. It would be an easy matter to bring you every evening four baskets of game, if you would give me in exchange two baskets of vegetables.'

"At these words Robinson and Friday retired to consult, and the argument that passed is too interesting not to be reported in extenso.

"Friday: What do you think of it?

"Robinson: If we close with the proposal, we are ruined.

"F.: Are you sure of that? Let us consider.

"R.: The case is clear. Crushed by competition, our hunting as a branch of industry is annihilated.

"F.: What matters it, if we have the game?

"R.: Theory! it will no longer be the product of our labour.

"F.: I beg your pardon, sir; for in order to have game we must part with vegetables.

"R.: Then, what shall we gain?

"F.:. The four baskets of game cost us six hours' work. The foreigner gives us them in exchange for two baskets of vegetables, which cost us only three hours' work. This places three hours at our disposal.

"R.: Say, rather, which are substracted from our exertions. In this will consist our loss. Labour is wealth, and if we lose a fourth part of our time, we shall be less rich by a fourth.

"F.: You are greatly mistaken, my good friend. We shall have as much game, and the same quantity of vegetables, and three hours at our disposal into the bargain. This is progress, or there is no such thing in-the world.

"R.: You lose yourself in generalities! What should we make of these three hours?

"F.: We would do something else.

"R.: Ah! I understand you. You cannot come to particulars. Something else, something else—this is easily said.

"F.: We can fish, we can ornament our cottage, we can read the Bible.

"R.: Utopia! Is there any certainty that we should do either the one or the other?

"F.: Very well, if we have no wants to satisfy we can rest. Is repose nothing?

"R.: But while we repose we may die of hunger.

"F.: My dear friend, you have got into a vicious circle. I speak of a repose which will subtract nothing from our supply of game and vegetables. You always forget that by means of our foreign trade nine hours' labour will give us the same quantity of provisions that we obtain at present with twelve.

"R: It is very evident, Friday, that you have not been educated in Europe, and that you have never read the Moniteur Industriel. If you had, it would have taught you this: that all time saved is sheer loss. The important thing is not to eat or consume, but to work. All that we consume, if it is not the direct produce of our labour, goes for nothing. Do you want to know whether you are rich? Never consider the satisfactions you enjoy, but the labour you undergo. This is what the Moniteur Industriel would teach you. For myself, who have no pretensions to be a theorist, the only thing I look at is the loss of our hunting.

"F.: What a strange conglomeration of ideas! but...

"R.: I will have no buts. Moreover, there are political reasons for rejecting the interested offers of the perfidious foreigner.

"F.: Political reasons!

"R.: Yes, he only makes us these offers because they are advantageous to him.

"F.: So much the better, since they are for our advantage likewise.

"R.: Then by this traffic we should place ourselves in a situation of dependence upon him.

"F.: And he would place himself in dependence on us. We should have need of his game, and he of our vegetables, and we should live on terms of friendship.

"R.: System! Do you want me to shut your mouth?

"F.: We shall see about that. I have as yet heard no good reason.

"R.: Suppose the foreigner learns to cultivate a garden, and that his island should prove more fertile than ours. Do you see the consequence?

"F.: Yes; our relations with the foreigner would cease. He would send us no more vegetables, since he could have them at home with less labour. He would take no more game from us, since we should have nothing to give him in exchange, and we should then be in precisely the situation that you wish us in now.

"R.: Improvident savage! You don't see that after having annihilated our hunting by inundating us with game, he would annihilate our gardening by inundating us with vegetables.

"F.: But this would only last till we were in a situation to give him something else; that is to say, until we found something else which we could produce with economy of labour for ourselves.

"R. Something else, something else! You always come back to that. You are at sea, my good friend Friday; there is nothing practical in your views."

"The debate was long prolonged, and, as often happens, each remained wedded to his own opinion. But Robinson possessing a great ascendant over Friday, his opinion prevailed, and when the foreigner arrived to demand a reply, Robinson said to him—

"' Stranger, in order to induce us to accept your proposal, we must be assured of two things:

"' The first is, that your island is no better stocked with game than ours, for we want to fight only with equal weapons.

"' The second is, that you will lose by the bargain. For, as in every exchange there is necessarily a gaining and a losing party, we should be dupes, if you were not the loser. What have you got to say?'

"' Nothing,' replied the foreigner; and, bursting out a-laugh-ing, he regained his canoe."

"The story would not be amiss, if Robinson were not made to argue so very absurdly."

"He does not argue more absurdly than the committee of the Rue Hauteville."

"Oh! the case is very different. Sometimes you suppose one man, and sometimes (which comes to the same thing) two men working in company. That does not tally with the actual state of things. The division of labour and the intervention of merchants and money change the state of the question very much."

"That may complicate transactions, but does not change their nature."

"What! you want to compare modern commerce with a system of barter."

"Trade is nothing but a multiplicity of barters. Barter is in its own nature identical with commerce, just as labour on a small scale is identical with labour on a great scale, or as the law of gravitation which moves an atom is identical with that same law of gravitation which moves a world."

"So, according to you, these arguments, which are so untenable in the mouth of Robinson, are equally untenable when urged by our protectionists."

"Yes; only the error is better concealed under a complication of circumstances."

"Then, pray, let us have an example taken from the present order of things."

"With pleasure. In France, owing to the exigencies of climate and habits, cloth is a useful thing. Is the essential thing to make it, or to get it?"

"A very sensible question, truly! In order to have it, you must make it."

"Not necessarily. To have it, some one must make it, that is certain; but it is not at all necessary that the same person or the same country which consumes it should also produce it. You have not made that stuff which clothes you so well. France does not produce the coffee on which our citizens breakfast."

"But I buy my cloth, and France her coffee."

"Exactly so; and with what?"

"With money."

"But neither you nor France produce the material of money."

"We buy it."

"With what?"

"With our products, which are sent to Peru."

"It is then, in fact, your labour which you exchange for cloth, and French labour which is exchanged for coffee."

"Undoubtedly."

"It is not absolutely necessary, therefore, to manufacture what you consume."

"No; if we manufacture something else which we give in exchange."

"In other words, France has two means of procuring a given quantity of cloth. The first is to make it; the second is to make something else, and to exchange this something else with the foreigner for cloth. Of these two means, which is the best?"

"I don't very well know."

"Is it not that which, for a determinate amount of labour, obtains the greater quantity of cloth?"

"It seems so."

"And which is best for a nation, to have the choice between these two means, or that the law should prohibit one of them, on the chance of stumbling on the better of the two?"

"It appears to me that it is better for the nation to have the choice, inasmuch as in such matters it invariably chooses right."

"The law, which prohibits the importation of foreign cloth, decides, then, that if France wishes to have cloth, she must make it in kind, and that she is prohibited from making the something else with which she could purchase foreign cloth."

"True."

"And as the law obliges us to make the cloth, and forbids our making the something else, precisely because that something else would exact less labour (but for which reason the law would not interfere with it) the law virtually decrees that for a determinate amount of labour, France shall only have one yard of cloth, when for the same amount of labour she might have two yards, by applying that labour to something else!" "But the question recurs, 'What else?"

"And my question recurs, 'What does it signify?' Having the choice, she will only make the something else to such an extent as there may be a demand for it."

"That is possible; but I cannot divest myself of the idea that the foreigner will send us his cloth, and not take from us the something else, in which case we would be entrapped. At all events, this is the objection even from your own point of view. You allow that France could make this something else to exchange for cloth, with a less expenditure of labour than if she had made the cloth itself?"

"Undoubtedly."

"There would, then, be a certain amount of her labour rendered inert?"

"Yes; but without her being less well provided with clothes, a little circumstance which makes all the difference. Robinson lost sight of this, and our protectionists either do not see it, or pretend not to see it. The shipwrecked plank rendered fifteen days of Robinson's labour inert, in as far as that labour was applied to making a plank, but it did not deprive him of it. Discriminate, then, between these two kinds of diminished labour—the diminution which has for effect privation, and that which has for its cause satisfaction. These two things are very different, and if you mix them up, you reason as Robinson did. In the most complicated, as in the most simple cases, the sophism consists in this: Judging of the utility of labour by its duration and intensity, and not by its results; which gives rise to this economic policy: To reduce the results of labour for the purpose of augmenting its duration and intensity." *

* See ch. ii. and iii. of Sophimes, first series; and
Harmonies Économiques, ch. vi.








XV. THE LITTLE ARSENAL OF THE FREE-TRADER.

If any one tells you that there are no absolute principles, no inflexible rules; that prohibition may be bad and yet that restriction may be good,

Reply: "Restriction prohibits all that it hinders from being imported.":

If any one says that agriculture is the nursing-mother of the country,

Reply: "What nourishes the country is not exactly agriculture, but corn."

If any one tells you that the basis of the food of the people is agriculture,

Reply: "The basis of the people's food is corn. This is the reason why a law which gives us, by agricultural labour, two quarters of corn, when we could have obtained four quarters without such labour, and by means of labour applied to manufactures, is a law not for feeding, but for starving the people." If any one remarks that restriction upon the importation of foreign corn gives rise to a more extensive culture, and consequently to increased home production,

Reply: "It induces men to sow grain on comparatively barren and ungrateful soils. To milk a cow and go on milking her, puts a little more into the pail, for it is difficult to say when you will come to the last drop. But that drop costs dear."

If any one tells you that when bread is dear, the agriculturist, having become rich, enriches the manufacturer,

Reply: "Bread is dear when it is scarce, and then men are poor, or, if you like it better, they become rich starvelings."

If you are further told that when bread gets dearer, wages rise, Reply by pointing out that, in April 1847, five-sixths of our workmen were receiving charity,

If you are told that the wages of labour should rise with the increased price of provisions,

Reply: "This is as much as to say that in a ship without provisions, everybody will have as much biscuit as if the vessel were fully victualled."

If you are told that it is necessary to secure a good price to the man who sells corn,

Reply: "That in that case it is also necessary to secure good wages to the man who buys it."

If it is said that the proprietors, who make the laws, have raised the price of bread, without taking thought about wages, because they know that when bread rises, wages naturally rise, Reply: "Upon the same principle, when the workmen come to make the laws, don't blame them if they fix a high rate of wages without busying themselves about protecting corn, because they know that when wages rise, provisions naturally rise also."

If you are asked what, then, is to be done?

Reply: "Be just to everybody."

If you are told that it is essential that every great country should produce iron,

Reply: "What is essential is, that every great country should have iron."

If you are told that it is indispensable that every great country should produce cloth,

Reply: "The indispensable thing is, that the citizens of every great country should have cloth."

If it be said that labour is wealth,

Reply: "This is not true."

And, by way of improvement, add: "Phlebotomy is not health, and the proof of it is that bleeding is resorted to for the purpose of restoring health."

If it is said: "To force men to cultivate rocks, and extract an ounce of iron from a hundredweight of ore, is to increase their labour and consequently their wealth,"

Reply: "To force men to dig wells by prohibiting them from taking water from the brook, is to increase their useless labour, but not their wealth."

If you are told that the sun gives you his heat and light without remuneration,

Reply: "So much the better for me, for it costs me nothing to see clearly."

And if you are answered that industry in general loses what would have been paid for artificial light,

Rejoin; "No; for having paid nothing to the sun, what he saves me enables me to buy clothes, furniture, and candles."

In the same way, if you are told that these rascally English possess capital which is dormant,

Reply: "So much the better for us; they will not make us pay interest for it."

If it is said: "These perfidious English find coal and iron in the same pit,"

Reply: "So much the better for us; they will charge us nothing for bringing them together."

If you are told that the Swiss have rich pasturages, which cost little:

Reply: "The advantage is ours, for they will demand a smaller amount of our labour in return for giving an impetus to our agriculture, and supplying us with provisions."

If they tell you that the lands of the Crimea have no value, and pay no taxes,

Reply: "The profit is ours, who buy corn free from such charges."

If they tell you that the serfs of Poland work without wages,

Reply: "The misfortune is theirs and the profit is ours, since their labour does not enter into the price of the corn which their masters sell us."

Finally, if they tell you that other nations have many advantages over us,

Reply: "By means of exchange, they are forced to allow us to participate in these advantages."

If they tell you that under free-trade we are about to be inundated with bread, bouf à la mode, coal, and winter clothing, Reply: "In that case we shall be neither hungry nor thirsty."

If they ask how we are to pay for these things?

Reply: "Don't let that disquiet you. If we are inundated, it is a sign we have the means of paying for the inundation; and if we have not the means of paying, we shall not be inundated."

If any one says: I should approve of free-trade, if the foreigner, in sending us his products, would take our products in exchange; but he carries off our money,

Reply: "Neither money nor coffee grows in the fields of Beauce, nor are they turned out by the workshops of Elbeuf. So far as we are concerned, to pay the foreigner with money is the same thing as paying him with coffee."

If they bid you eat butcher's meat,

Reply: "Allow it to be imported."

If they say to you, in the words of the Presse, "When one has not the means to buy bread, he is forced to buy beef," Reply: "This is advice quite as judicious as that given by M. Vautour to his tenant: