The great distance of India from the British islands, the vast expense of
transporting bulky articles eight thousand miles accross the ocean, have
prevented the counterpart of this effect taking place; and the British
farmers feeling the depressing influence of the Indian plough, in like
manner as the Indian manufacturers have the ruinous competition of the
British steam-engine. But it is clear that, if India had been nearer, the
former effect would have taken place as well as the latter. If the shores
of Hindostan were within a few days sail of London and Liverpool, and the
Indian cultivators, labouring at 2d. or 3d. a-day, had been brought into
direct competition with the British farmers, employing labourers who
received two or three shillings, can there be a doubt that the British
farmers would have been totally destroyed in the struggle? The English
farmers would have been prostrated by the same cause which has ruined the
Indian muslin manufacturers. Cheap grain, the fruit of free trade, would
have demolished British agriculture as completely as cheap cotton goods,
the fruits of unlimited importation, has ruined Indian manufacturing
industry.
Is, then, commercial intercourse impossible, on terms of mutual benefit,
between states in widely different circumstatnces of commercial or
agricultural advancement; and is the only reciprocity which can exist
between them and reciprocity of evil? It is by no means necessary to rest
in so unsatisfatory a conclusion. A most advantageous commercial
intercourse to both parties may be carried on, but it must not be on the
footing of free trade. The foundation of such an intercourse should be,
that each should take, on the most favourable terms, the articles which
_it wants and does not produce_, and impose restrictions on those which
_it wants and does produce_. On this priciple, trade would be conducted so
as to benefit both countries, and injure neither. Thus England may take
from India to the utmost extent, and with perfect safety, sugar, indigo,
cotton, tea, spices, cinnamon, and the more costly species of shawls;
while India might take from England some species of cotton manufacture in
which they have no fabrics of their own, cutlery, hardware, and all of the
various luxuries of European manufacture. But a paternal and just
government, equally alive to the interests of all its provinces, how far
removed soever from the seat of power, would impose restrictions to
prevent India being deluged with British cottons, to the ruin of its
native manufactures, and to prevent Britian--if the distance did not
operate, which it certainly would, as a sufficient protection--from being
flooded with Indian grain. The varieties of climate, productions, and
wants, in different countries, are such, that commerce, regulated on these
principles, might be carried to the greatest extent consistent with the
paramount duty of providing in each state for the preservation of its
staple articles of industry.
Public-domain text, read in full here on John Shaqi.
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