_Johnson, E. H._, The effect of a tariff on production. Q. J. E., 18: 135-137. 1903-1904. _Patten, S. N._, The economic basis of protection. 1890. *_Source Book_, 347-357, 358-360. _Wallace, H. B._, A balanced tariff. A. E. Rev., 2: 568-575. 1912. QUESTIONS. 1. Can it be of advantage to trade freely with one nation if general free trade is bad? 2. If there were no legal bar to a tariff between the states, would a tariff probably be imposed? If so, would it be a wise measure? 3. Discuss the contention that a protective tariff by helping to keep out imports of foreign goods tends to maintain a favorable balance of trade. 4. "The territorial distribution of money is both a determined and a determining factor in international trade." Explain the meaning of this statement and show its relation to the "favorable balance of trade" argument for protection. 5. An Englishman gave this argument for protection: "If an Englishman buys a frying pan from a German for a shilling (24 cents), then England gets the frying pan and Germany gets the shilling, whereas if an Englishman buys the frying pan from an English manufacturer for 13 pence (26 cents), England gets both the frying pan and the 13 pence. The increase in price benefits England because the money remains within the country, instead of going abroad to increase the wealth of foreign nations." Give your opinion of this argument. 6. Discuss this statement: "The American people send abroad over $100,000,000 a year to pay for imported sugar. To meet this bill requires the wheat crop of over 7,100,000 acres. But all the sugar now imported could be grown on 1,700,000 acres in beets or cane. In other words we are throwing away the product of approximately 5,400,000 acres of land by not growing our own sugar." 7. A New York daily has contended that "Of course, we should be the gainers if every pound of it (raw cotton) were exported in manufactured form. Every process through which the raw material passes in its conversion into fabrics would mean employment for American wage-earners." Discuss the proposition that the aggregate for the labor of American wage-earners is less if we export raw cotton than if we should manufacture the raw cotton in this country for export. 8. Assuming that an import duty on tea, if sufficiently high, would create a tea growing industry in the United States capable of supplying the whole domestic demand, trace the various economic effects of such a duty. 9. Who gained when Hawaiian sugar (before annexation) was admitted free of duty, while other sugar was taxed? 10. If the owners of marble quarries can show that their net income is 30 per cent. greater by reason of the protective tariff upon foreign marbles, does this show that the tariff increases the wealth of the protecting country?