Part 20

Machinery, and the importation of foreign commodities, certainly produce effects. These effects may be good or bad; on that there may be difference of opinion. But whatever view we take of them, it is reduced to a formula, by one of these two principles: Machinery is a good; or, machinery is an evil: Importations of foreign produce are beneficial; or, such importations are hurtful. But to assert that there are no principles, certainly exhibits the lowest degree of abasement to which the human mind can descend; and I confess that I blush for my country when I hear such a monstrous heresy proclaimed in the French Chambers, and with their assent; that is to say, in the face and with the assent of the élite of our fellow-citizens; and this in order to justify their imposing laws upon us in total ignorance of the real state of the case.

But then I am told to destroy the sophism, by proving that machinery is not hurtful to human labour, nor the importation of foreign products to national labour.

A work like the present cannot well include very full or complete demonstrations. My design is rather to state difficulties than to resolve them; to excite reflection rather than to satisfy doubts. No conviction makes so lasting an impression on the mind as that which it works out for itself. But I shall endeavour nevertheless to put the reader on the right road.

What misleads the adversaries of machinery and foreign importations is, that they judge of them by their immediate and transitory effects, instead of following them out to their general and definitive consequences.

The immediate effect of the invention and employment of an ingenious machine is to render superfluous, for the attainment of a given result, a certain amount of manual labour. But its action does not stop there. For the very reason that the desired result is obtained with fewer efforts, the product is handed over to the public at a lower price; and the aggregate of savings thus realized by all purchasers, enables them to procure other satisfactions; that is to say, to encourage manual labour in general to exactly the extent of the manual labour which has been saved in the special branch of industry which has been recently improved. So that the level of labour has not fallen, while that of enjoyments has risen.

Let us render this evident by an example.

Suppose there are used annually in this country ten millions of hats at 15 shillings; this makes the sum which goes to the support of this branch of industry £7,500,000 sterling. A machine is invented which allows these hats to be manufactured and sold at 10 shillings. The sum now wanted for the support of this industry is reduced to £5,000,000, provided the demand is not augmented by the change. But the remaining sum of £2,500,000 is not by this change withdrawn from the support of human labour. That sum, economized by the purchasers of hats, will enable them to satisfy other wants, and, consequently, to that extent will go to remunerate the aggregate industry of the country. With the five shillings saved, John will purchase a pair of shoes, James a book, Jerome a piece of furniture, etc. Human labour, taken in the aggregate, will continue, then, to be supported and encouraged to the extent of £7,500,000; but this sum will yield the same number of hats, plus all the satisfactions and enjoyments corresponding to £2,500,000 that the employment of the machine has enabled the consumers of hats to save. These additional enjoyments constitute the clear profit which the country will have derived from the invention. This is a free gift, a tribute which human genius will have derived from nature. We do not at all dispute, that in the course of the transformation a certain amount of labour will have been displaced; but we cannot allow that it has been destroyed or diminished.

The same thing holds of the importation of foreign commodities. Let us revert to our former hypothesis.

The country manufactures ten millions of hats, of which the cost price was 15 shillings. The foreigner sends similar hats to our market, and furnishes them at 10 shillings each. I maintain that the national labour will not be thereby diminished.

For it must produce to the extent of £5,000,000, to enable it to pay for 10 millions of hats at 10 shillings.

And then there remains to each purchaser five shillings saved on each hat, or in all, £2,500,000, which will be spent on other enjoyments--that is to say, which will go to support labour in other departments of industry.

Then the aggregate labour of the country will remain what it was, and the additional enjoyments represented by £2,500,000 saved upon hats, will form the clear profit accruing from imports under the system of free trade.

It is of no use to try to frighten us by a picture of the sufferings which, on this hypothesis, the displacement of labour will entail.

For, if the prohibition had never been imposed, the labour would have found its natural place under the ordinary law of exchange, and no displacement would have taken place.

If, on the other hand, prohibition has led to an artificial and unproductive employment of labour, it is prohibition, and not liberty, which is to blame for a displacement which is inevitable in the transition from what is detrimental to what is beneficial.

At all events, let no one pretend that because an abuse cannot be done away with, without inconvenience to those who profit by it, what has been suffered to exist for a time should be allowed to exist for ever.

XXI. RAW MATERIALS.

It is said that the most advantageous of all branches of trade is that which supplies manufactured commodities in exchange for raw materials. For these raw materials are the aliment and support of national labour.

Hence the conclusion is drawn:

That the best law of customs is that which gives the greatest possible facility to the importation of raw materials, and which throws most obstacles in the way of importing finished goods.

There is no sophism in political economy more widely disseminated than this. It is cherished not only by the protectionist school, but also, and above all, by the school which dubs itself liberal; and it is unfortunate that it should be so, for what can be more injurious to a good cause than that it should be at the same time vigorously attacked and feebly defended?

Commercial liberty is likely to have the fate of liberty in general; it will only find a place in the statute-book after it has taken possession of men's minds and convictions. But if it be true that a reform, in order to be solidly established, should be generally understood, it follows that nothing can so much retard reform as that which misleads public opinion; and what is more calculated to mislead public opinion than works which, in advocating freedom, invoke aid from the doctrines of monopoly?

Some years ago three of the great towns of France--Lyons, Bordeaux, and Havre--united in a movement against the restrictive régime. All Europe was stirred on seeing raised what they took for the banner of liberty. Alas! it proved to be also the banner of monopoly--of a monopoly a little more niggardly and much more absurd than that of which they seemed to desire the overthrow. By the aid of the sophism which I have just endeavoured to expose, the petitioners did nothing more than reproduce the doctrine of protection to national industry, tacking to it an additional inconsistency.

It was, in fact, nothing else than the régime of prohibition. Just listen to M. de Saint-Cricq:--

"Labour constitutes the wealth of a nation, because labour alone creates those material objects which our wants demand; and universal ease and comfort consist in the abundance of these things." So much for the principle.

"But this abundance must be produced by national labour. If it were the result of foreign labour, national labour would be immediately brought to a stand." Here lies the error. (See the preceding sophism.)

"What course should an agricultural and manufacturing country take under such circumstances? Reserve its markets for the products of its own soil and of its own industry." Such is the end and design.

"And for that purpose, restrain by duties, and, if necessary, prohibit importation of the products of the soil and industry of other nations." Such are the means.