[CHAPTER 14]
THE POLICY OF A PROTECTIVE TARIFF
References.
Bolen, G. L., Plain facts as to the trusts and the tariff. 1902. Pt. II.
Daniels, W. M., The elements of public finance. Ed., 1911. Pt. II, ch. VII.
Johnson, E. H., The effect of a tariff on production. Q. J. E., 18: 135-137. 1903-1904.
Patten, S. N., The economic basis of protection. 1890.
*Source Book, 347-357, 358-360.
Wallace, H. B., A balanced tariff. A. E. Rev., 2: 568-575. 1912.
Questions.
1. Can it be of advantage to trade freely with one nation if general free trade is bad?
2. If there were no legal bar to a tariff between the states, would a tariff probably be imposed? If so, would it be a wise measure?
3. Discuss the contention that a protective tariff by helping to keep out imports of foreign goods tends to maintain a favorable balance of trade.
4. "The territorial distribution of money is both a determined and a determining factor in international trade."
Explain the meaning of this statement and show its relation to the "favorable balance of trade" argument for protection.