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education in hand； and thus they have by degrees made such progress
that they can dispute the palm of industrial skill with their
instructors。 If the English in the last twenty years have made more
rapid progress in machinery for linen manufacture than other
nations； and especially the French； have done； this has only
occurred because； firstly； they had attained greater eminence in
mechanical skill； secondly； that they were further advanced in
machinery for spinning and weaving cotton； which is so similar to
that for spinning and weaving linen； thirdly； that in consequence
of their previous commercial policy； they had become possessed of
more capital than the French； fourthly； that in consequence of that
commercial policy their home market for linen goods was far more
extensive than that of the French； and lastly that their protective
duties； combined with the circumstances above named； afforded to
the mechanical talent of the nation greater stimulus and more means
to devote itself to perfecting this branch of industry。
The English have thus given a striking confirmation of the
opinions which we in another place have propounded and explained
that all individual branches of industry have the closest
reciprocal effect on one another； that the perfecting of one branch
prepares and promotes the perfecting of all others； that no one of
them can be neglected without the effects of that neglect being
felt by all； that； in short； the whole manufacturing power of a
nation constitutes an inseparable whole。 Of these opinions they
have by their latest achievements in the linen industry offered a
striking confirmation。
NOTES：
1。 Even a part of the production of wool in England is due to the
observance of this maxim。 Edward IV imported under special
privileges 3；000 head of sheep from Spain （where the export of
sheep was prohibited）； and distributed them among various parishes；
with a command that for seven years none were to be slaughtered or
castrated。 （Essai sur le Commerce d'Angleterre； tome i。 p。 379。） As
soon as the object of these measures had been attained； England
rewarded the Spanish Government for the special privileges granted
by the latter； by prohibiting the import of Spanish wool。 The
efficacy of this prohibition （however unjust it may be deemed） can
as little be denied as that of the prohibitions of the import of
wool by Charles II （1672 and 1674）。
2。 France； said Pitt； has advantages above England in respect of
climate and other natural gifts； and therefore excels England in
its raw produce； on the other hand； England has the advantage over
France in its artificial products。 The wines； brandies； oils； and
vinegars of France； especially the first two； articles of such
importance and of such value； that the value of our natural
products cannot be in the least compared with them。 But； on the
other hand； it is equally certain that England is the exclusive
producer of some kinds of manufactured goods； and that in respect
of other kinds she possesses such advantages that she can defy
without doubt all the competition of France。 This is a reciprocal
condition and a basis on which an advantageous commercial treaty
between both nations should be founded。 As each of them has its
peculiar staple commodities； and each possesses that which is
lacking to the other； so both should deal with one another like two
great merchants who are engaged in different branches of trade； and
by a reciprocal exchange of their goods can at once become useful
to one another。 Let us further only call to mind on this point the
wealth of the county with which we stand in the position of
neighbours； its great population； its vicinity to us； and the
consequent quick and regular exchange。 Who could then hesitate a
moment to give his approval to the system of freedom； and who would
not earnestly and impatiently wish for the utmost possible
expedition in establishing it？ The possession of such an extensive
and certain market must give quite an extraordinary impulse to our
trade； and the customs revenue which would then be diverted from
the hands of the smuggler into the State revenue would benefit our
finances； and thus two main springs of British wealth and of
British power would be made more productive。
3。 Since List wrote these lines； the duties which foreign silk
manufacturers had to pay on the import of their goods into England
have been totally abolished。 The results of their abolition may be
learned from Mr Wardle's report on the English silk trade； as
follows： London； in 1825； contained 24；000 looms and 60；000
operatives engaged in silk manufacture。 At the present time these
have dwindled to 1；200 looms and less then 4；000 operatives。 In
Coventry； in 1861； the ribbon trade is stated to have given
subsistence to 40；600 persons； while at the present time probably
not more than 10；000 persons are supported by it； and the
power…looms at work in Coventry have decreased from 1；800 to 600。
In Derby the number of operatives employed in silk manufacture has
decreased from 6；650 （in 1850） to 2；400 at present。 In the
Congleton district they have decreased from 5；186 （in 1860） to
1；530 （in 1884）； while of the forty silk…throwsters' works which
that district contained （in 1859） only twelve now remain； with
'about three…fourths of their machinery employed。' In Manchester
this trade has practically died out； while at Middleton the
industry is 'simply ruined。' These results （stated by Mr Wardle）
may account for the decrease in England's imports of raw silk； from
8；000；000 pounds （in 1871） to less than 3；000；000 pounds。
On the other hand； since List wrote； the United States of
America have increased and steadily maintained a considerable
protective duty on the importation of foreign silk manufactures。
The results of that policy were publicly stated by Mr Robert P。
Porter （member of the United States' Tariff Commission）； in a
speech in 1883； to have been as follows：
Five thousand persons were employed in silk manufacture in the
United States before the Morill tariff （1861）。 In 1880 their number
had increased to 30；000。 The value of silk manufactures produced in
the States increased from 1；200；000 l。 in 1860 to more than
8；000；000 l。 in 1880。 'Yet the cost of the manufactured goods to
the consumer； estimated on a gold basis； has steadily declined at
a much greater rate than the cost of the raw material。' After
reference to the earthenware and plate…glass manufactures； Mr
Porter adds： 'The testimony before the Tariff Commission showed
unquestionably that the competition in the United States had
resulted in a reduction in the cost to the American consumer。 In
this way； gentlemen； I contend； and am prepared to prove
statistically。 that protection； so far as the United States are
concerned； has in every case ultimately benefited the consumer； and
on this ground I defend it and believe in it。' TRANSLATOR。
4。 Chaptal； De l'Industrie Fran鏰ise vol。 ii。； p。 147。
Chapter 34
The Insular Supremacy and the German Commercial Union
What a great nation is at the present day without a vigorous
commercial policy； and what she may become by the adoption of a
vigorous commercial policy； Germany has learnt for herself during
the last twenty years。 Germany was that which Franklin once said of
the State of New Jersey； 'a cask which was tapped and drained by
its neighbours on every side。' England； not conten