288. Compare the advantages and disadvantages of direct and indirect taxation.
289. On what principles is this country now taxed?
290. Explain the arguments for and against the policy of maintaining a surplus for the purpose of redeeming a national debt.
291. In estimating the ability of the United States to pay its public debts, it is usual to include among the data of the question the increased productiveness of industry in that country. How far is this a pertinent consideration?
Protection.
292. Mention some of the principal arguments brought forward in favor of protective tariffs.
293. Connect the principle of the division of employments (or labor) with the policy of free trade and the functions of government.
294. Sketch the effects of discriminating duties, including the operation of the corn laws.
295. Examine the following argument, emending, if you think it necessary, the free-trader's doctrine on the point raised: The free-trader's belief is that a customs duty is added to the price of the article upon which it is imposed. If the article is imported, according to his theory, the increase of the price goes into the public treasury; if the article is made in the country, the increase of the price goes into the pocket of the producer. But in the former case there is no protection; and competition will prevent the latter. Therefore protection does not increase the price of the protected article. If a customs duty is imposed upon a commodity, and its price is not raised in consequence, what inference can you draw?
296. Under what circumstances did Mr. Mill think nascent states might be justified in adopting a policy of protection? Criticise his opinion, and, if you agree with it, give some examples of its application.