the vested interests and the common man-第20章

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of　vested　interests　and　divine　rights　that　once　made　the　monarch　
of　the　old　order　an　unfailing　source　of　outrage　and　desolation。　
In　the　hands　of　those　〃Elder　Statesmen〃　who　once　did　business　
under　the　signature　of　the　dynasty；　the　traffic　in　statecraft　
yielded　nothing　better　than　a　mess　of　superfluous　affliction；　and　
there　is　no　reason　to　apprehend　that　a　continuation　of　the　same　
traffic　under　the　management　of　the　younger　statesmen　who　now　do　
business　in　the　name　of　the　democratic　commonwealth　is　likely　to　
bring　anything　more　comfortable；　even　though　the　legal　
instruments　in　the　case　may　carry　the　rubber…stamp　O。　K。　of　the　
common　man。　The　same　items　will　foot　up　to　the　same　sum；　and　in　
either　case　the　net　gain　is　always　something　appreciably　less　
than　nothing。　
　　　　These　national　interests　are　part　of　the　medieval　system　of　
ends；　ways　and　means；　as　it　stood；　complete　and　useless；　at　that　
juncture　when　the　democratic　commonwealth　took　over　the　divine　
rights　of　the　crown。　It　should　not　be　extremely　difficult　to　
understand　why　they　have　stood　over；　or　why　they　still　command　
the　dutiful　approval　of　the　common　man。　It　is　a　case　of　aimless　
survival；　on　the　whole；　due　partly　to　the　inertia　of　habit　and　
tradition；　partly　to　the　solicitous　advocacy　of　these　assumed　
national　interests　by　those　classes　　the　trading　and　
office…holding　classes　　who　stand　to　gain　something　by　the　
pursuit　of　them　at　the　cost　of　the　rest。　By　tenacious　tradition　
out　of　the　barbarian　past　these　peoples　have　continued　to　be　
rival　nations　living　in　a　state　of　habitual　enmity　and　distrust；　
for　no　better　reason　than　that　they　have　not　taken　thought　and　
changed　their　mind。　
　　　　After　some　slackening　of　national　animosities　and　some　
disposition　to　neglect　national　pretensions　during　the　earlier　
decades　of　the　great　era　of　Liberalism；　the　democratic　nations　
have　been　gradually　shifting　back　to　a　more　truculent　attitude　
and　a　more　crafty　and　more　rapacious　management　in　all　
international　relations。　This　aggressive　chauvinistic　policy　has　
been　called　Imperialism。　The　movement　has　visibly　kept　pace；　more　
or　less　closely；　with　the　increasing　range　and　volume　of　commerce　
and　foreign　investments　during　the　same　period。　And　to　further　
this　business　enterprise　there　has　been　an　ever　increasing　resort　
to　military　power。　It　is　reasonably　believed　that　traders　and　
investors　in　foreign　parts　are　able　to　derive　a　larger　profit　
from　their　business　when　they　have　the　backing　of　a　powerful　and　
aggressive　national　government；　particularly　in　their　dealings　
with　helpless　and　backward　peoples；　and　more　particularly　if　
their　own　national　government　is　sufficiently　unscrupulous　and　
overbearing；　　which　may　confidently　be　counted　on　so　long　as　
these　governments　continue　to　be　administered　by　the　gentlemanly　
delegates　of　the　vested　interests　and　the　kept　classes。　
　　　　As　regards　the　intrinsic　value　which　is　popularly　attached　to　
the　imponderable　national　possessions；　in　the　way　of　honor　and　
prestige；　there　is　little　to　be　said；　beyond　the　stale　reflection　
that　there　is　no　disputing　about　tastes。　It　all　is　at　least　a　
profitable　illusion；　for　the　use　of　those　who　are　in　a　position　
to　profit　by　it。　Such　as　the　crown　and　the　officeholders。　But　the　
people　of　the　civilised　nations　believe　themselves　to　have　also　a　
material　interest　of　some　sort　in　enlarging　the　national　
dominions　and　in　extending　the　foreign　trade　of　their　business　
men　and　safe…guarding　the　foreign　claims　of　their　vested　
interests。　And　the　Americans；　like　many　others；　harbor　the　
singular　delusion　that　they　can　derive　a　collective　benefit　from　
obstructing　the　country's　trade　at　the　national　frontiers　by　
means　of　a　tariff　barrier；　and　so　defeating　their　own　industry　by　
that　much。　It　is　a　survival　out　of　the　barbarian　past；　out　of　the　
time　when　the　dynastic　politicians　were　occupied　with　isolating　
the　nation　and　making　it　self…sufficient；　as　an　engine　of　warlike　
enterprise　for　the　pursuit　of　dynastic　ambitions　and　the　greater　
discomfort　of　their　neighbors。　In　an　increasing　degree　as　the　new　
order　of　industry　has　come　into　bearing；　any　such　policy　of　
industrial　isolation　and　self…sufficiency　has　become　more　
difficult　and　more　injurious；　for　a　free　range　and　unhindered　
specialisation　is　of　the　essence　of　the　new　industrial　order。　
　　　　The　experience　of　the　war　has　shown　conclusively　that　no　one　
country　can　hereafter　supply　its　own　needs　either　in　raw　
materials　or　in　finished　goods。　Both　the　winning　and　the　losing　
side　have　shown　that。　The　new　industrial　order　necessarily　
overlaps　the　national　frontiers；　even　in　the　case　of　a　nation　
possessed　of　so　extensive　and　varied　natural　resources　as　
America。　So　that　in　spite　of　all　the　singularly　ingenious　
obstruction　of　the　American　tariff　the　Americans　still　continue　
to　draw　on　foreign　sources　for　most　or　all　of　their　tea；　coffee；　
sugar；　tropical　and　semi…tropical　fruits；　vegetable　oils；　
vegetable　gums　and　pigments；　cordage　fibers；　silks；　rubber；　and　a　
bewildering　multitude　of　minor　articles　of　daily　use。　Even　so　
peculiarly　American　an　industry　as　chewing…gum　is　wholly　
dependent　on　foreign　raw　material；　and　quite　unavoidably　so。　The　
most　that　can　be　accomplished　by　any　tariff　under　these　
circumstances　is　more　or　less　obstruction。　Isolation　and　
self…sufficiency　are　already　far　out　of　the　question。　
　　　　But　there　are　certain　vested　interests　which　find　their　
profit　in　maintaining　a　tariff　barrier　as　a　means　of　keeping　the　
price　up　and　keeping　the　supply　down；　and　the　common　man　still　
faithfully　believes　that　the　profits　which　these　vested　interests　
derive　in　this　way　from　increasing　the　cost　of　his　livelihood　and　
decreasing　the　net　productivity　of　his　industry　will　benefit　him　
in　some　mysterious　way。　He　is　persuaded　that　high　prices　and　a　
scant　supply　of　goods　at　a　high　labor　cost　is　a　desirable　state　
of　things。　This　is　incredible；　but　there　is　no　denying　the　fact。　
He　knows；　of　course；　that　the　profits　of　business　go　to　the　
business　men；　the　vested　interests；　and　to　no　one　else；　but　he　is　
still　beset　with　the　picturesque　hallucination　that　any　unearned　
income　which　goes　to　those　vested　interests　whose　central　office　
is　in　New　Jersey　is　paid　to　himself　in　some　underhand　way；　while　
the　gains　of　those　vested　interests　that　are　domiciled　in　Canada　
are　obviously　a　grievous　net　loss　to　him。　The　tariff　moves　in　a　
mysterious　way；　its　wonders　to　perform。　
　　　　To　all　adult　persons　of　sound　mind；　and　not　unduly　clouded　
with　the　superstitions　of　the　price　system；　it　is　an　obvious　
matter　of　fact　that　any　protective　tariff　is　an　obstruction　to　
industry　and　a　means　of　impoverishment；　just　so　far　as　it　is　
effective。　The　arguments　to　the　contrary　invariably　turn　out　to　
be　pettifogger's　special　pleading　for　some　vested　interest　or　for　
a　warlike　national　policy；　and　these　arguments　convince　only　
those　persons　who　are　able　to　believe　that　a　part　is　greater　than　
the　whole。　It　also　lies　in　the　nature　of　protective　tariffs　that　
they　always　cost　the　nation　disproportionately　much　more　than　
they　are　worth　to　those　vested　interests　which　profit　by　them。　In　
this　respect　they　are　like　any　other　method　of　businesslike　
sabotage。　Their　aim；　and　presumably　their　effect；　is　to　keep　the　
price　up　by　keeping　the　supply　down；　to　hinder　competitors　and　
retard　production。　As　in　other　instances　of　businesslike　
sabotage；　therefore；　the　net　margin　of　advantage　to　those　who　
profit　by　it　is　greatly　less　than　what　it　costs　the　community。　
　　　　Yet　it　is　to　be　noted　that　the　Americans　have　prospered；　on　
the　whole；　under　protective　tariffs　which　have　been　as　
ingeniously　and　comprehensively　foolish　as　could　well　be　
contrived。　There　is　even　some　color　of　reason　in　the　contentions　
of　the　protectionists　that　the　more　reasonable　tariffs　have　
commonly　been　more　depressing　to　industry　than　the　most　imbecile　
of　them。　All　of　which　should　be　disquieting　to　the　advocates　of　
free　trade。　The　defect　of　the　free…trade　argument；　and　the　
disappointment　of　free…trade　policies；　lies　in　overlooking　the　
fact　that　in　the　absence　of　an　obstructive　tariff　substantially　
the　same　amount　of　obstruction　has　to　be　accomplished　by　other　
means；　if　business　is　to　prosper。　And　business　prosperity　is　the　
only　manner　of　prosperity　known　or　provided　for　among　the　
civilised　nations。　It　is　the　only　manner　of　prosperity　on　which　
the　divine　right　of　the　nation　gives　it　a　claim。　A　protective　
tariff　is　only　an　alternative　method　of　businesslike　sabotage。　If　
and　so　far　as　this　method　of　keeping　the　supply　of　goods　within　
salutary　bounds　is　not　resorted　to；　other　means　of　accomplishing　
the　same　result　must　be　employed。　For　so　long　as　investment　
continues　to　control　industry　the　welfare　of　the　community　is　
bound　up　with　the　prosperity　of　its　business；　and　business　can　
not　be　carried　on　without　reasonably　profitable　prices；　and　
reasonably　profitable　prices　can　not　be　maintained　without　a　
salutary　limitation　of　the　supply；　which　means　slowing　down　
production　to　such　a　rate　and　volume　as　the　traffic　will　bear。　
　　　　A　protective　tariff　is　only　one　means　of　crippling　the　
country's　industrial　forces；　for　the　good　of　business。　In　its　
absence　all　that　matter　will　be　taken　care　of　by　other　means。　The　
tariff　may　perhaps　be　a　little　the　most　flagrant　method　of　
sabotage　by　which　the　vested　interests　are　enabled　to　do　a　
reasonably　profitable　business；　but　there　is　nothing　more　than　a　
difference　of　degree；　and　not　a　large　difference　at　that。　So　long　
as　industry　is　managed　with　a　view　to　a　profitable　price　it　is　
quite　indispensable　to　guard　against　an　excessive　rate　and　volume　
of　output。　In　the　absence　of　all　businesslike　sabotage　the　
productive　capacity　of　the　industrial　system　would　very　shortly　
pass　all　reasonable　bounds；　prices　would　decline　disastrously　and　
overhead　charges　would　not　be　covered；　fixed　charges　on　
corporation　securities　and　other　credit　instruments　could　not　be　
met；　and　the　whole　structure　of　business　enterprise　would　
collapse；　as　it　occasionally　has　done　in　times　of　
〃over…production。〃　There　is　no　doing　business　without　a　fair　
price；　since　the　net　price　over　cost　is　the　motive　of　business。　A　
protective　tariff　is；　in　effect；　an　auxiliary　safeguard　against　
overproduction。　Incidentally　the　fact　that　its　imposition　does　
not　result　in　insufferable　hardship　serves　also　to　show　that　the　
new　order　of　industry　is　highly　productive；　quite　inordinately　
productive　in　fact。　And　it　is　a　divine　right　of　the　nation　to　use　
its　discretion　and　offset　this　inordinate　efficiency　of　its　
common　stock　of　knowledge　by　adroitly　crippling　its　own　commerce　
and　the　commerce　of　its　neighbors；　for　the　benefit　of　those　
vested　interests　that　are　domiciled　within　the　national　
frontiers。　
　　　　But　the　divine　right　of　national　self…direction　also　covers　
much　else　of　the　same　description；　besides　the　privilege　of　
setting　up　a　tariff　in　restraint　of　trade。　There　are　many　
channels　of　such　discrimination；　of　divers　kinds；　but　always　it　
will　be　found　that　these　channels　are　channels　of　sabotage　and　
t