51. THE BRITISH TARIFF MOVE MENT: ITS ORIGIN, THEORY AND PROSPECTS. "For more penetrating ob servers," writes Dr. Schulze-Galvernitz in his able study of the British economic situation, the overwhelming success of the Liberals in the elections of January 1906, was less sur prising than the number of votes given against Free 'Trade." This is the verdict of the search ing and candid writer whose prepossessions are all in favor of Free Trade. The remark shows a genuine anatomical knowledge of British politics and may be commended to Americans who wish to penetrate surface impressions on The aggregate Liberal (Free Trade) vote was less than 50 per cent. of the whole, though the pendulum was swinging with very excep tional violence against the previous government for reasons largely unconnected with the Free Trade issue.
The Unionist, or Fiscal Reform party, secured at the first trial of strength, within less than three years from the beginning of Mr. Chamberlain's tariff campaign, the support of more than two-fifths of the nation. This is the surprising fact, as Professor Schulze Galvernitz perceives. Seventy years after Adam Smith's 'Wealth of Nations' had ap peared; nearly a quarter of a century after Huskinson had commenced to reduce the obso lete tariffs raised to an exorbitant height by the desperate revenue necessities of the Napoleonic wars; seven years after Cobden had started his violent and masterly agitation against the corn duties, the country was still unconverted to the Free Trade principle. It was suddenly moved to throw open its ports by the Irish famine and the crop failure of a disastrous season. °It was the rain," as Mr. John Morley remarks, "that rained away the Corn Laws in 1846." The predominant fact of recent English poli tics is the rise of the tariff movement. The history of this fact may be briefly sketched. Its origins were slow and subconscious. Mr. Cobden had always dwelt upon the advantage of an unfettered exchange of cotton for corn. England would manufacture the cotton and other things ; America and other countries would grow the corn; there would be an ideal division of labor from the British point of view. Mr.
Cobden promised that if England abolished her tariffs there would not be a country in the world within five years but would have followed Tier example. Seventy years have elapsed; no country has followed her example. A steady rise of national tariffs, as elaborate and power ful as the fortifications of Vauban, has domi nated the intervening period. The Far East has followed the example of the United States and the European Continent. Great Britain is only one open island amid the closing markets of the world. Free Trade, therefore — exchange equally unrestricted on one side and the other as between two nations transacting— hats never yet prevailed anywhere. It is an un known condition. Even England has not had it. She has instead the system of free imports by which foreign competition is admitted with out interference to her market, while her own competition is as far as possible suppressed in foreign markets. That is not a satisfactory comparison.
Foreign protective tariffs are a disadvan tage to British trade. British free imports are relatively an advantage to foreign trade. The conditions are unequal. Unequal conditions in commerce are not good. Free Trade writers simply restate, without modification of any kind, the traditional arguments which would apply to a genuine international system of free exchange, but cannot apply in the same meas ure—and, to a large extent, do not apply at all — to the state of things prevailing in the total absence of that system.
For a prolonged period (1846-75), British trade expanded with unexampled energy. Agriculture flourished. The economic con ditions of the world were transformed by the Californian and Australian gold discoveries; by railway construction in the United. States and upon the European Continent; by steam shipping. But America and Europe alike were convulsed by great wars. England had remained , at peace and her workshops domi nated all markets. But her memorable period of uncontested supremacy was over.