CONTENTS THE IMPORTANCE OF EXTERNAL TRADE § 1. The measure of industrial prosperity § 2. The real income of a nation § 3. Growth of transport, distribution, and non-material pro- § 6. Scarcity value in non-competing groups § 7. Various forms of restriction yielding scarcity values NATIONS AS TRADING GROUPS § 1. International mobility of capital and labour § 2. Influence of national barriers on prices CHAPTER V NON-PROTECTIVE IMPORT DUTIES § 1. Cases of inequality in international trade § 2. The test case of Standard Oil THE INCIDENCE OF PROTECTIVE AND § 1. Conditions under which consumers bear all the tax § 2. Division of the incidence of a preferential duty §3. Consumer's burden in excess of treasury gain § 4. Effect of import duty on price of manufactures § 1. Tendency of free exchange to equalise gains § 2. How nations determine their profitable imports and § 1. Protection and dumping as mutually destructive processes. 113 § 2. Reductio ad absurdum of the "dumping" policy § 3. Protection a policy of special trades, not of national in- § 6. No "separate" cost of production for dumped goods § 10. A summary of revenue policy CHAPTER XI Practical difficulties of a "scientific" tariff § 10. Tendency of Protection to aggravate under-consumption § 11. Labour weaker than capital in protected industries 12. Protectionism as a political defence of vested interests § 13. A policy of national self-sufficiency §14. "Thorough" Protection means isolation PROTECTION AND SOCIALISM § 2. Is Protection a corollary of "socialistic" legislation? § 3. Our national interest to receive cheap imports § 4. National governments impotent to control international § 5. Failure of the alleged analogy § 6. Protection considered as 'a producer's policy" SIN goods in the hands of consumers, the industrial prosperity of a nation is measured by the quantity of material and non-material goods of various sorts which are consumed by its members. The employment of capital and labour in the industrial arts, trades, and professions is to be regarded as a means to the production of commodities. The quantity of such employment cannot, however, be taken as a reliable index of industrial prosperity, for that country will be most prosperous which can secure through home industry or foreign commerce the largest number and variety of commodities for the smallest employment of capital and labour. Industrial progress, indeed, depends upon the economy of capital and labour. It is of the first importance to the understanding of the nature and uses of commerce to recognise that it |