[A3-5-7] As free trade in Holland's best period was more an international law than a politico-economical system, so, afterwards, the Dutch protective system grew out of war prohibitions; and, in times of peace, the newly established industry was not abandoned. At last, in the time of its decline, all industries, with a strange logic, sought protection, even the most ancient one, the one whose growth was the most natural, the fisheries. (Laspeyres, Gesch. der volksw. Ansch., 134 ff., 146, 159.) The United States, during the war of 1812, with England, doubled their protective duties. (A. Young, Report on the Customs-tariff Legislation of the U. S., 1874.)
[A3-5-8] Hence, we should not judge the Russian and the American systems of industrial protection, for instance, by the same rule. In Russia, it may be necessary to strengthen artificially the still weak bourgeoisie, and to awaken numberless slumbering forces and opportunities by encouragement of their use by state measures. Here, also, the absolute ruler is called upon, and accustomed to educate his people. In the United States, on the other hand, there is no nobility; the whole nation belongs to the class of burghers, and even the cultivators of the land are raisers of corn, cattle traders, land speculators etc. Considering the universal activity and laborious energy of the people, it is to be expected that every really profitable opportunity will be turned to account in such a country, without any suggestion or assistance from the state. Here, therefore, A. Walker's saying is true: America should produce no iron, not because it does not know how, because it has not sufficient capital, because the nature of the country is not adapted to it, or because it has no natural protection, but "because we can do better." (Sc. of W., 94 seq.) Since a democracy cannot, properly speaking, educate the people, the protective duties of the United States are, for the most part, only attempts by one part of the people, who claim to be the whole, to prey upon the other parts.
[A3-5-9] If we suppose three countries, each in the form of a square: A = 1 sq. m., B = 100 sq. m., C = 10,000 sq. m.; there is in A for every mile of boundary ¼ sq. m. of inland country; in B, 2½ in C, 25.
[A3-5-10] Towards the close of the middle ages, the vigorous commercial policy of Venice, for instance, towards Greece, or the Mohammedan power, was thwarted by other Italian cities, Genoa, Pisa, and later, by Florence especially.
[A3-5-11] Why most of the reasons above advanced do not apply to a corresponding "protection" of agriculture by duties on corn, see Roscher, Nationalökonomik des Ackerbaues, § 159 ff.
SECTION VI.
WHY THE PROTECTIVE SYSTEM WAS ADOPTED.
This explains why so many nations in the periods of transition between their medieval age and their higher stages of civilization, adopted the industrial protective system.[A3-6-1] [A3-6-2] [A3-6-3] [A3-6-4] [A3-6-5] [A3-6-6]
[A3-6-1] The fact that among the ancients there was so little thought bestowed on the protection of industry is related to the comparative insignificance of their industry. Compare Roscher, Ansichten der Volkswirthschaft, 3 ed., 1878, vol. 1, p. 23 ff. It occasionally happened in the east that workers in metal, especially the makers of metallic weapons, were dragged out of the country. I Sam., 13, 19; II Kings, 24, 14 ff.; Jerem., 24, 1, 29, 2. Among the Jews, certain costly products were subjected to export prohibitions for fear that the heathen might use them for purposes of sacrifice. (Mischna, De Cultu peregr., § 6.) Persian law, that the king should consume only home products: Athen., V, p. 372; XIV, p. c. 62. The Athenians went farthest in reducing such provisions to a system. Solon had strictly prohibited the exportation of all raw material save oil (Plutarch, Sol., 24), and a complaint was allowed against any one who scoffed at a citizen because of the industry he carried on in the market. (Demosth., adv. Eubul., p. 1308.) The exportation of corn was always prohibited; also that of the principal materials used in ship-building. In war, prohibitions of the exportation of weapons; importation from enemy countries also prohibited. No Athenian was permitted to loan money on ships which did not bring a return cargo to Athens (Demosth. adv. Lacrit., p. 941), nor carry wheat to any place but Athens. (Böckh., Staatsh. der Ath., I, 73 ff.) In Argos and Ægina, the importation of Athenian clay commodities and articles of adornment, prohibited. (Herodot., V, 88; Athen., IV, 13; XI, 60.)
The Athenians imposed a duty of two per cent. both on imports and exports. Similarly, in Rome, where the higher duties imposed on many articles of luxury served an ethico-political purpose. We have, besides, accounts of prohibitions of the exportation of money: Cicero, pro Flacco, 28 (L., 2, Cod. Just., IV, 63). Plato's advice to prohibit the importation of luxuries and the exportation of the means of subsistence (De Legg.) on ethico-political considerations; and the Byzantine prohibition of the exportation of certain articles of display from court vanity. (Porph. Decaerim, p. 271 ff. Reiske.)