The great consequence was that Free Trade won hands down, and for a long time all its opponents, however distinguished or reasonable, were laughed at. But if we wish to be worthy students of Economic Science we cannot dismiss the quarrel so simply. There is such a thing as a strong _economic_ argument in favour of Protection in particular circumstances. The practical proof of this truth is the immense increase in wealth which took place in the German Empire during the thirty years before the Great War, which increase exactly corresponded with a highly protective tariff. The same thing happened in the United States at the same time. But the theoretical argument in favour of Protection is much better, because the increase of wealth in Germany and the United States under Protection might be due to other causes, whilst it can be shown by _reason_ that Protection itself, in particular cases, increases the total national wealth. With the proof of this I will end the present chapter. We have seen that the following formula is true:--_Freedom of exchange tends to increase the total amount of wealth of all that area which it covers._ But what gives the argument for Protection, in special cases, its value is, as we saw on page 64, a second Formula equally true. Though freedom of exchange tends to increase the total wealth of an area over which it extends, _yet it does not tend to increase the wealth of every part of that area_. Therefore, if a part of the area over which freedom of exchange extends finds itself impoverished by the process, it may be enriched by interfering with freedom of exchange over the boundaries of its own special part. Therein lies the whole argument for Protection in particular cases. Let us take for example three islands, two close together and one far away and prove the case by figures. [Illustration: FIG. 1.] [Illustration: FIG. 2.] We will number them A, B, C. Island A is full of iron ore. Island B is full of coal. Island C is also full of iron ore, like No. A, but it is a long way off. Iron ore naturally comes to the coal area to be smelted, because, being heavier, it can be carried in smaller bulk. It is cheaper to bring iron ore to coal than coal to iron ore. If all three islands belong to the same realm what will happen is quite clear. Island B will import iron ore from Island A and will smelt it and turn it into pig-iron and steel and iron manufactures of all kinds, while Island C, a long way off, will remain unused. We will suppose the climate of No. C to be bleak, the soil bad, and the people there, since they cannot sell their iron ore on account of the distance at which they stand, make a very poor livelihood out of grazing a few cattle.