A history of economic doctrines : $b from the time of the physiocrats to the present dayGide, Charles
History
A history of economic doctrines : $b from the time of the physiocrats to the present day
Gide, Charles
Economics -- History
One might experience some difficulty in understanding the sudden
_volte-face_ of List in favour of free exchange in agriculture did we
forget the particular situation in Germany, to which his thoughts always
returned. This is equally true of many other points in his system.
Germany was an exporter of corn and suffered from the operation of the
English Corn Laws. German agriculture needed no protection, but suffered
from want of markets, and List would have been very happy to persuade
England to abandon her Corn Laws. Agricultural protection was only
revived in Germany towards the end of 1879, when the agriculturists
thought they were being threatened by foreign competition.
II: SOURCES OF LIST’S INSPIRATION. HIS INFLUENCE UPON SUBSEQUENT
PROTECTIONIST DOCTRINES.
The question of the origin of List’s Protectionist ideas has frequently
been raised. The works of the Frenchmen Dupin and Chaptal undoubtedly
gave him some material for reflection, but he was really confirmed in
his opposition to _laissez-faire_ by the men whom he met in America.
While there he came into intimate contact with the members of a society
which had been founded at Philadelphia for the encouragement of national
industry. The founder of this society was an American statesman named
Hamilton, the author of a celebrated report upon manufactures, who as
far back as 1791 had advocated the establishment of Protection for
the encouragement of struggling American industries.[593] Hamilton’s
argument, as List fully recognised, bears a striking similarity to the
thesis of the _National System_.[594] The Philadelphian society, which
was then presided over by Matthew Carey (the father of the economist of
whom we shall have to speak by and by), immediately after List’s arrival
in America inaugurated an active campaign on behalf of a revision of the
tariffs. Ingersoll, the vice-president, persuaded List to join in the
campaign, which he did by publishing in 1827 a number of letters which
caused quite a sensation.[595] They are really just a _résumé_ of the
_National System_. The policy which in the course of a few years he was
to advocate in Germany he now recommended to the consideration of the
Americans.
But facts were even more eloquent than books, and what chiefly struck the
practical mind and the observant eye of List was the material success
of American Protection, just as in Germany he had been impressed by the
beneficial effects which temporary Protection enforced by the Continental
Blockade had produced there.[596]
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