Note A3-4-6 — Chapter III

Let us suppose that a country had hitherto produced $10,000,000 worth of corn, and that of this amount it had sent $1,000,000 worth into foreign countries as a counter-value for foreign manufactured articles. It now, by means of a protective tariff, establishes home manufactures, through the instrumentality of which a coal bed or water fall is turned to account. The workmen in the manufactories henceforth consume what was formerly exported. Of course such a change is not effected without loss; but this loss ceases as soon as the home industry becomes the equal of the foreign industry which was crowded out. And then the forces which have been made useful in the meantime appear as clear gain. List not unfrequently called special attention to the fact that a consumption of 70,000 persons engaged in home industries means as much to German agriculture as all that it exported to England from 1833 to 1836. (Zollvereinsblatt, 1843, No. 5.)