This implies that the Socialist, whether he be a “Free Trader” or no, has to dismiss as untenable practically the whole of the old economic case for Free Trade. Adam Smith did doubtless prove that under a system of absolutely free exchange, every country would tend to engage in those trades which were (for the moment at any rate) most commercially profitable to it; but he never proved or attempted to prove that these would be the trades which were most socially beneficent. It might, for example, happen that the White Lead trade proved the most commercially advantageous industry in which Englishmen could engage. But would any modern reformer say that in that case it would be well for us to abandon all our other industries and take to the manufacture of white lead--with all its inevitable concomitants. It may be urged that such a case is not likely to occur. But cases differing from it only in degree may very well occur--have indeed occurred already. Such a case is the decline of our agriculture and the consequent flooding of the towns with cheap unskilled labour; such also is the tendency already more than faintly visible for small trades, largely unskilled and often sweated, to supplant our staple industries. And these things, though they are the inevitable consequence of unrestricted competition and though Cobden would have regarded them with complete equanimity, are the very things against which social reformers have for years been fighting a long and apparently a hopeless battle. No Socialist can give them a moment’s toleration. Whether Socialists will think Mr. Chamberlain’s remedy adequate is another thing. For Mr. Chamberlain’s point of view--a purely commercial one--is at bottom identical with that of his Cobdenite opponents. And it is just this that makes mere statistics of trade and comparisons between imports and exports so barren and misleading. What we want to know is not how much tribute the capitalist gets out of our foreign trade, but what wages the labourer gets, what are the conditions under which he works, and what is the amount of employment available. Thus for instance foreign investments pay the capitalist as well as British investments and are accordingly highly esteemed by the Cobdenites as “invisible exports.” But they are not equally satisfactory to the workman who loses his job and drifts into the ranks of the unemployed. From this point of view Protection if it kept capital in the country and even attracted foreign capital might be eminently beneficial to the workers, even though the aggregate of national wealth were thereby diminished. Now we have reached two conclusions. Firstly that Socialists will approach the tariff question with an open mind; secondly that they will approach it mainly from the standpoint of its effect upon the social condition of the people and upon the distribution of wealth.