Thirdly,--Capital is unproductively bestowed in enabling those who produce at home dearer than foreigners to sell abroad as cheap as foreigners,--that is, in bounties on exportation: and when,
Fourthly,--Capital is diverted from its natural course to be employed in producing at home that which is expensive and inferior, instead of in preparing that which will purchase the same article cheap and superior abroad,--that is, when restrictions are imposed on importation.
But though the general interest is sacrificed, no particular interest is permanently benefited, by special protections; since
Restrictive regulations in favour of the few are violated, when such violation is the interest of the many; and
Every diminution of the consumer's fund causes a loss of custom to the producer. Again,
The absence of competition and deprivation of custom combine to make his article inferior and dear; which inferiority and dearness cause his trade still further to decline.
Such are the evils which attend the protection of a class of producers who cannot compete with foreign producers of the same article.
If home producers can compete with foreign producers, they need no protection, as, cæteris paribus, buying at hand is preferable to buying at a distance.
Free competition cannot fail to benefit all parties:--
Consumers, by securing the greatest practicable improvement and cheapness of the article;