it sold out its right to levy toll on the payment of a lump sum by the
countries interested in free navigation.
=412. Customs tariffs; the prohibitive system.=—The most important
topic which remains to be considered in this chapter is that of
commercial policy as shown in the customs tariffs. The details of
tariff policy must be left to later chapters, in which the different
states will be considered separately; place can be found here only
for a brief review of the general course of development, and for a
consideration of some of the factors which explain the great changes.
Only a few years before the outbreak of the French Revolution France
and England had agreed to a commercial treaty, which marked a great
departure from the restrictive principles of the old mercantilist
policy, and seemed to promise a new era of freedom in trade. The
outbreak of war destroyed the new system almost as soon as it had
been carried into effect, and changed the relations between the two
states into that attitude of fierce antagonism which has been described
above. The return of peace found the tariff systems of both France
and England set in the old lines. The tariffs included a vast number
of duties, both on imports and on exports; the rates were high and
often prohibitive; the protection of national shipping by navigation
acts was maintained. Similar characteristics marked the tariffs of
other European states, and this period may fitly be termed the era of
prohibition in recent commercial policy.
=413. The period of free trade, 1860-1880.=—The prohibitive system
held its ground, however, only by force of custom and by the active
support of small groups whom it favored. The writings of French and
English economists, of whom Adam Smith was the great representative,
had convinced thinking men that the people and countries of Europe
would benefit by greater freedom of trade, and governments waited
only for favorable conditions, political and economic, to lower their
customs duties. The movement toward reform was at first local, finding
place especially in England and Germany. Soon after the middle of the
century, however, it became general in Europe, and led to such sweeping
changes that the period extending, roughly, from 1860 to 1880 has often
been called the free-trade period in commercial history. This was the
time when the technical inventions, especially the application of
steam on a large scale to manufactures and transportation, were first
showing their full power in increasing productiveness. At this time a
state which secluded itself commercially seemed to be renouncing the
chance to share in the great movement of progress. Industrial states
sought markets for their manufactures and sources of supply for their
food and raw materials. Agricultural states found the offers for
their surplus products too tempting to be refused. So many profitable
openings appeared everywhere that there was little dread of competition
and little call for protection.
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