Apart from monopolies, industry was shackled in the earlier part of the modern period by restrictive legislation in various forms, by navigation laws, and by tariffs. In particular, the tariff was not merely an obstruction to free enterprise, but a source of inequality as between trade and trade. Its fundamental effect is to transfer capital and labour from the objects on which they can be most profitably employed in a given locality, to objects on which they are less profitably employed, by endowing certain industries to the disadvantage of the general consumer. Here, again, the Liberal movement is at once an attack on an obstruction and on an inequality. In most countries the attack has succeeded in breaking down local tariffs and establishing relatively large Free Trade units. It is only in England, and only owing to our early manufacturing supremacy, that it has fully succeeded in overcoming the Protective principle, and even in England the Protectionist reaction would undoubtedly have gained at least a temporary victory but for our dependence on foreign countries for food and the materials of industry. The most striking victory of Liberal ideas is one of the most precarious. At the same time, the battle is one which Liberalism is always prepared to fight over again. It has led to no back stroke, no counter-movement within the Liberal ranks themselves. It is otherwise with organized restrictions upon industry. The old regulations, which were quite unsuited to the conditions of the time, either fell into desuetude during the eighteenth century, or were formally abolished during the earlier years of the industrial revolution. For a while it seemed as though wholly unrestricted industrial enterprise was to be the progressive watchword, and the echoes of that time still linger. But the old restrictions had not been formally withdrawn before a new process of regulation began. The conditions produced by the new factory system shocked the public conscience; and as early as 1802 we find the first of a long series of laws, out of which has grown an industrial code that year by year follows the life of the operative, in his relations with his employer, into more minute detail. The first stages of this movement were contemplated with doubt and distrust by many men of Liberal sympathies. The intention was, doubtless, to protect the weaker party, but the method was that of interference with freedom of contract. Now the freedom of the sane adult individual--even such strong individualists as Cobden recognized that the case of children stood apart--carried with it the right of concluding such agreements as seemed best to suit his own interests, and involved both the right and the duty of determining the lines of his life for himself. Free contract and personal responsibility lay close to the heart of the whole Liberal movement. Hence the doubts felt by so many Liberals as to the regulation of industry by law. None