Note A3-8-9 — Chapter III

In the case of circulating capital this is generally done rapidly. The machines would have worn out, and care is taken not to renew them. Buildings also can, for the most part, serve other purposes. The most difficult thing of all is for the masses of men, gathered together at the principal seats of industry, artificially created, to distribute themselves. Between the two rules: "No leap, but gradual transition," and "cut the dog's tail off at once, not piecemeal," the right mean is struck in the abolition of a prohibitive protection, when, what it is intended to do, is announced long in advance without maintaining vain hopes, and a long space of time is left to enable people to make their arrangements accordingly. This plan was followed in a model manner in reference to the English silk prohibition, under Huskisson. It was announced as early as 1824 that protective duties of 30 per cent. would on the 5th of July, 1826, take the place of the prohibition. The duty on raw silk was immediately reduced from 4 sh. to 3d. per pound, and after a time, even to 1d., which so increased the demand that the number of spindles rapidly increased from 780,000 to 1,180,000. During the 10 years from 1824, the importation of raw and twisted silk amounted to about 1,941,000 pounds, and in the 10 years after, to 4,164,000 pounds. The English exports of silk wares had before 1824 a value of £350,000 to £380,000; in 1830, of over £521,000; in 1854, of almost £1,700,000; in 1863, of £3,147,000. Compare Porter, Progress, I, 255 ff. On the other hand, Austria was over-hasty when it went over from the prohibition of foreign silk stuffs to duties of 180 florins per cwt. (Oest. Weltausstellungsbericht von 1867, IV, 140.)