The Geneva Protocol — John Stuart Mill — John Shaqi
The Geneva Protocol
John Stuart Mill · en
But in time of peace, the "control of raw materials" in the last
analysis means that the owners of those materials can do only two
things with them, use them or to sell them. This is perhaps most
obvious in the case of such raw materials as are perishable, but it is
true of all.
Take such a product as copper, for example. Some countries have copper
mines, others have none. But the ownership of a copper mine is of no
possible advantage unless the copper produced from that mine is
manufactured into something else or is sold. Of course temporarily a
mine owner may leave his ore in the ground or may store a supply of
copper above ground; but these are expedients to be resorted to only in
some time of over-production and impossible of continuance. If the
product of the mine is not either used or sold, its advantage is purely
a theoretical possibility of the future. It has no more value in
present reality than a bank note on a desert island.
The really important factor, as to raw materials, is _access to the
market_ on an _equal footing_.
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In practice there are only two ways in which a State or its citizens
can be discriminated against, in time of peace, so far as the State's
access to supplies of raw materials is concerned. They are as follows:
(1) By discriminatory export duties, or similar duties. In practice
these are _not_ important.
(2) By discrimination in respect of prices, or similar matters, by
_monopolistic_ producers. To achieve this result it is necessary not
merely that one _State_ should have a "monopoly" of the supply of some
raw materials, but also that _within_ that State, the production and
sales of the raw materials should be in the hands of monopoly.
Further, the domestic monopolistic organization, must, in order that
discrimination should be an outcome of the situation, find it
_profitable_ (not merely "patriotic") to discriminate in favor of the
domestic market. There is _no_ important instance of such
discrimination.
Such conjunction of circumstances is one which is exceedingly unlikely
to occur. There is more chance that there will be discrimination _in
favor of_ the foreign buyer. In short, the matter is not one of great
practical importance, for
(1) a raw material supplied only by one State
and (2) controlled, _within_ the State, by a monopoly, which
also (3) finds it profitable to discriminate against foreign
buyers
is something to be found only in imagination.
I venture to say that there has never been a time in modern
civilization when the people of any country have been prevented by the
international situation from obtaining any raw material whatever for
which they had the capacity to pay. The only possible exception to
this statement has been in time of war[15]; and the only possible
change in the situation in time of peace would, as I have suggested,
amount to some form of compulsory international charity.
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