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    Colonial products; so far as they do not consist of raw



materials for manufacturing purposes; evidently act more as



stimulants than necessary means of subsistence。 No one will deny



that barley coffee without sugar is as nutritious as mocha coffee



with sugar; and admitting also that these products contain some



nutritious matter; their value in this respect is nevertheless so



unimportant that they can scarcely be considered as substitutes for



native provisions。 With regard to spices and tobacco; they are



certainly mere stimulants; i。e。 they chiefly produce a useful



effect on society only so far as they augment the enjoyments of the



masses; and incite them to mental and bodily labour。



    In many countries very erroneous notions prevail among those



who live by salaries or rents; respecting what they are accustomed



to call the luxurious habits of the lower classes; such persons are



shocked to observe that labourers drink coffee with sugar; and



regret the times when they were satisfied with gruel; they deplore



that the peasant has exchanged his poor clothing of coarse homespun



for woollen cloth; they express fears that the maid…servant will



soon not be distinguishable from the lady of the house; they praise



the legal restrictions on dress of previous centuries。 But if we



compare the result of the labour of the workman in countries where



he is clad and nourished like the well…to…do man with the result of



his labour where he has to be satisfied with the coarsest food and



clothing; we shall find that the increase of his comfort in the



former case has been attained not at the expense of the general



welfare; but to the advantage of the productive powers of the



community。 The day's work of the workman is double or three times



greater in the former case than in the latter。 Attempts to regulate



dress and restrictions on luxury have destroyed wholesome emulation



in the large masses of society; and have merely tended to the



increase of mental and bodily idleness。



    In any case products must be created before they can be



consumed; and thus production must necessarily generally precede



consumption。 In popular and national practice; however; consumption



frequently precedes production。 Manufacturing nations; supported by



large capital and less restricted in their production than mere



agricultural nations; make; as a rule; advances to the latter on



the yield of future crops; the latter thus consume before they



produce  they produce later on because they have previously



consumed。 The same thing manifests itself in a much greater degree



in the relation between town and country: the closer the



manufacturer is to the agriculturist; the more will the former



offer to the latter both an inducement to consume and means for



consumption; the more also will the latter feel himself stimulated



to greater production。



    Among the most potent stimulants are those afforded by the



civil and political institutions of the country。 Where it is not



possible to raise oneself by honest exertions and by prosperity



from one class of society to another; from the lowest to the



highest; where the possessor necessarily hesitates to show his



property publicly or to enjoy the fruits of it because it would



expose his property to risk; or lest he should be accused of



arrogance or impropriety; where persons engaged in trade are



excluded from public honour; from taking part in administration;



legislation; and juries; where distinguished achievements in



agriculture; industry; and commerce do not lead also to public



esteem and to social and civil distinction; there the most



important motives for consumption as well as for production are



wanting。



    Every law; every public regulation; has a strengthening or



weakening effect on production or on consumption or on the



productive forces。



    The granting of patent privileges offers a prize to inventive



minds。 The hope of obtaining the prize arouses the mental powers;



and gives them a direction towards industrial improvements。 It



brings honour to the inventive mind in society; and roots out the



prejudice for old customs and modes of operation so injurious among



uneducated nations。 It provides the man who merely possesses mental



faculties for new inventions with the material means which he



requires; inasmuch as capitalists are thus incited to support the



inventor; by being assured of participation in the anticipated



profits。



    Protective duties act as stimulants on all those branches of



internal industry the produce of which foreign countries can



provide better than the home country but of the production of which



the home country is capable。 They guarantee a reward to the man of



enterprise and to the workman for acquiring new knowledge and



skill; and offer to the inland and foreign capitalist means for



investing his capital for a definite and certain time in a



specially remunerative manner。







Chapter 26







Customs Duties as a Chief Means of Establishing and Protecting the



internal Manufacturing Power







    It is not part of our plan to treat of those means of promoting



internal industry whose efficacy and applicability are nowhere



called in question。 To these belong e。g。 educational establishments



(especially technical schools); industrial exhibitions; offers of



prizes; transport improvements; patent laws; &c。; in short; all



those laws and institutions by means of which industry is



furthered; and internal and external commerce facilitated and



regulated。 We have here merely to speak of the institution of



customs duties as a means for the development of industry。



    According to our system; prohibitions of; or duties on; exports



can only be thought of as exceptional things; the imports of



natural products must everywhere be subject to revenue duties only;



and never to duties intended to protect native agricultural



production。 In manufacturing states; articles of luxury from warm



climates are chiefly subject to duties for revenue; but not the



common necessaries of life; as e。g。 corn or fat cattle; but the



countries of warmer climate or countries of smaller population or



limited territory; or countries not yet sufficiently populous; or



such as are still far behind in civilisation and in their social



and political institutions; are those which should only impose mere



revenue duties on manufactured goods。



    Revenue duties of every kind; however; should everywhere be so



moderate as not essentially to restrict importation and



consumption; because; otherwise; not only would the internal



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