Nations, as we know, put up tariffs against goods which come from
abroad: That is, their Governments tax imports of certain goods and
thereby interfere with the freedom of exchange. For instance, the
French have a tax of this kind upon wheat. Wheat grown in France will
cost, let us say, £1 a sack, but the Argentine can send wheat to France
at an expense of only 10s. a sack, because the land there is new, and
for various other causes. If the wheat from the Argentine were allowed
to come in freely, and the French to export against it things which
they can make more easily than wheat they would have more wheat at a
less total expense; but they prefer to put a tax of ten shillings upon
every sack, that is, to put up a barrier against the import of wheat
from abroad, and so keep up the price artificially at home.
When a nation does this with regard to any object that may be imported,
if the object can also be produced within the nation (which it nearly
always can) it is said to _protect_ that object, and the system of so
doing is called =Protection=. The word arose from the demand of certain
trades to be “protected” by their Governments without considering
whether it was for the good of the whole nation or not. It obviously
would be a very nice thing for people who breed sheep, for instance, in
this country, if all mutton coming from the Colonies were taxed at the
Ports, while the mutton grown inside the country were not taxed; for in
this way the value of the mutton would rise in England, and the rise
would benefit the sheep owners. But it would be at the expense of all
the other people who did not grow sheep, and who would have to pay more
for their mutton.
As opposed to this system of _Protection_, and interfering with
international exchange by a tariff, intelligent people a long lifetime
ago began to agitate for what they called “=FREE TRADE=,” that is the
putting of no tariff on to an import, or at least no tariff high enough
to give an artificial price to the producer of the same thing at home.
Thus, when England was completely Free Trading (which it was until the
war) there was a tariff on tea; but that was not Protection, for those
who would try to grow tea here would have to grow it in hot houses and
at an enormous expense, and the tax on tea, though heavy, did not make
it anything like so dear as to make it worth while to produce tea here.
Public-domain text, read in full here on John Shaqi.
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