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industry the consequence of the protection will be; that the



internal competition will soon reduce the prices lower than they



had stood at when the importation was free。



    But has agriculture at all suffered under these high duties?



Not in the least; it has gained…gained tenfold during the last ten



years。 The demand for agricultural produce has increased。 The



prices of it everywhere are higher。 It is notorious that solely in



consequence of the growth of the home manufactories the value of



land has everywhere risen from fifty to a hundred per cent; that



everywhere higher wages are being paid; and that in all directions



improvements in the means of transport are either being effected or



projected。



    Such brilliant results as these must necessarily encourage us



to proceed farther on the system which we have commenced to follow。



Other States of the Union have also proposed to take similar steps;



but have not yet carried them into effect; while; as it would



appear; some other States of the Union only expect to attain



prosperity solely by the abolition of the English duties on grain



and timber; and while (as it is alleged) there are still to be



found influential men who believe in the cosmopolitical system and



distrust their own experience。 Dr Bowring's report gives us most



important explanations on these points as well as on the



circumstances of the German Commercial Union and the tactics of the



English Government。 Let us endeavour to throw a little light on



this report。



    First of all; we have to consider the point of view from which



it was written。 Mr Labouchere; President of the board of Trade



under the Melbourne Ministry; had sent Dr Bowring to Germany for



the same purpose as that for which Mr Poulett Thompson had sent him



to France in the year 1834。 Just as it was intended to mislead the



French by concessions in respect of wines and brandies to open



their home market to English manufactured goods; so it was intended



to mislead the Germans to do the same by concessions in respect of



grain and timber; only there was a great difference between the two



missions in this respect; that the concession which was to be



offered to the French had to fear no opposition in England; while



that which had to be offered to the Germans had first to be fought



for in England herself。



    Hence the tendency of these two reports was of necessity of



quite a different character。 The report on the commercial relations



between France and England was written exclusively for the French;



to them it was necessary to represent that Colbert had accomplished



nothing satisfactory through his protective regulations; it was



necessary to make people believe that the Eden Treaty was



beneficial to France; and that Napoleon's Continental system; as



well as the then existing French prohibitive system; had been



extremely injurious to her。 In short; in this case it was necessary



to stick closely to the theory of Adam Smith; and the good results



of the protective system must be completely and unequivocally



denied。 The task was not quite so simple with the other report; for



in this; one had to address the English land…owners and the German



Governments at one and the same time。 To the former it was



necessary to say: See; there is a nation which has already in



consequence of protective regulations made enormous advances in her



industry; and which; in possession of all necessary means for doing



so; is making rapid steps to monopolise her own home market and to



compete with England in foreign markets。 This; you Tories in the



House of Lords  this; you country squires in the House of



Commons; is your wicked doing。 This has been brought about by your



unwise corn laws; for by them the prices of provisions and raw



materials and the wages of labour have been kept low in Germany。 By



them the German manufactories have been placed in an advantageous



position compared to the English ones。 Make haste; therefore; you



fools; to abolish these corn laws。 By that means you will doubly



and trebly damage the German manufactories : firstly; because the



prices of provisions and raw materials and the wages of labour will



be raised in Germany and lowered in England; secondly; because by



the export of German grain to England the export of English



manufactured goods to Germany will be promoted; thirdly; because



the German Commercial Union has declared that it is disposed to



reduce their duties on common cotton and woollen goods in the same



proportion in which England facilitates the import of German grain



and timber。 Thus we Britons cannot fail once more to crush the



German manufactories。 But the question cannot wait。 Every year the



manufacturing interests are gaining greater influence in the German



Union; and if you delay; then your corn…law abolition will come too



late。 It will not be long before the balance will turn。 Very soon



the German manufactories will create such a great demand for



agricultural produce that Germany will have no more surplus corn to



sell to foreign countries。 What concessions; then; are you willing



to offer to the German Governments to induce them to lay hands on



their own manufactories in order to hinder them from spinning



cotton for themselves; and from encroaching upon your foreign



markets in addition?



    All this the writer of the report was compelled to make clear



to the landowners in Parliament。 The forms of the British State



administration permit no secret Government reports。 Dr Bowring's



report must be published; must therefore be seen by the Germans in



translations and extracts。 Hence one must use no expressions which



might lead the Germans to a perception of their true interests。



Therefore to every method which was adapted to influence



Parliament; an antidote must be added for the use of the German



Governments。 It must be alleged; that in consequence of the



protective system much German capital had been diverted into



improper channels。 The agricultural interests of Germany would be



damaged by the protective system。 That interest for its part ought



only to turn its attention to foreign markets; agriculture was in



Germany by far the most important productive industry; for



three…fourths of the inhabitants of Germany were engaged in it。 It



was mere nonsense to talk about protection for the producers; the



manufacturing interest itself could only thrive under foreign



competition : public opinion in Germany desired freedom of trade。



Intelligence in Germany was too universal for a desire for high



duties to be entertained。 The most enlightened men in the country



were in favour of a reduction of duties on common woollen and



cotton fabrics; in case the English duties on corn and timber were



reduced。



    In short; in this report two entirely different voices speak;



which contradict one another like two opponents。 Which of the two



must be deemed the true one…that which speaks to the Parliament; or



that which speaks to the German Governments? There is no difficulty



in deciding this point; for everything which Dr Bowring adduces in



order to induce Parliament to lower the import duties on grain and



timber is supported by statistical facts; calculations; and



evidence; while everything that he adduces to dissuade the German



Governments from the protective system is confined to mere



superficial assertions。



    Let us consider in detail the arguments by which Dr Bowring



proves to the Parliament that in case a check is not put to the



progress of the German protective system in the way which he



pointed out; the German market for manufactured goods must become



irrecoverably lost to England。



    The German people is remarkable; says Dr Bowring; for



temperance; thrift; industry; and intelligence; and enjoys a system



of universal education。 Excellent polytechnic schools diffuse



technical instruction throughout the entire country。



    The art of design is especially much more cultivated there than



in England。 The great annual increase of its population; of its



head of cattle; and especially of sheep; proves what progress



agriculture there has achieved。 (The report makes no mention of the



improvement in the value of property; though that is an important



feature; nor of the increase in the value of produce。) The wages of



labour have risen thirty per cent in the manufacturing districts。



The country possesses a great amount of water power; as yet unused;



which is the cheapest of all motive powers。 Its mining industry is



everywhere flourishing; more than at any previous time。 From 1832



up to 1837 the imports of raw cotton have increased from 118;000



centners to 240;000 centners; the imports of cotton yarn from



172;000 centners to 322;000 centners; the exports of cotton fabrics



from 26;000 centners to 75;000 centners; the number of



cotton…weaving looms in Prussia from 22;000 in 1825 to 32;000 in



1834; the imports of raw wool from 99;000 centners to 195;000



centners; the exports of the same from 100;000 centners to 122;000



centners; the imports of woollen articles from 15;000 centners to



18;000 centners; the exports of the same from 49;000 centners to



69;000 centners。



    The manufacture of linen cloths contends with difficulty



against the high duties in England; France; and Italy and has not



increased。 On the other hand; the imports of linen yarn have



increased from 30;000 cent

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